1.1 	A bill for an act
1.2 	relating to transportation; capital investment; taxes; amending provisions 
1.3 	governing transportation finance; establishing gross receipts motor fuels tax; 
1.4 	amending vehicle registration tax and metropolitan area transit sales tax; 
1.5 	amending distribution of highway user fund and state-aid funding; incorporating 
1.6 	efficiencies; modifying various fees and charges; modifying fiscal policies; 
1.7 	requiring reports; authorizing sale and issuance of trunk highway bonds; 
1.8 	appropriating money;amending Minnesota Statutes 2014, sections 16E.15, 
1.9 	subdivision 2; 115A.908; 161.081, subdivision 1; 161.082, subdivision 1, by 
1.10 	adding a subdivision; 161.083; 161.088, subdivision 5; 161.20, by adding a 
1.11 	subdivision; 161.231; 161.46, subdivision 2; 162.07, subdivision 1a; 168.002, 
1.12 	subdivision 24; 168.012, subdivision 1c; 168.013, subdivisions 1a, 1d, 1g, 8; 
1.13 	168.053, subdivision 1; 168.12, subdivisions 1, 2, 2b, 2c, 2d, 2e, 2g, 5; 168.121, 
1.14 	subdivision 1; 168.123, subdivision 1; 168.1235, subdivision 1; 168.1255, 
1.15 	subdivision 1; 168.128, subdivision 2; 168.1291, subdivision 4; 168.1295, 
1.16 	subdivision 1; 168.1296, subdivision 1; 168.1297, subdivision 1; 168.1298, 
1.17 	subdivision 1; 168.1299, subdivision 1; 168.27, subdivision 22; 168.31, by 
1.18 	adding a subdivision; 168.33, subdivisions 2, 7; 168.62, subdivision 3; 168A.05, 
1.19 	by adding a subdivision; 168A.07, by adding a subdivision; 168D.06; 169.011, 
1.20 	by adding a subdivision; 169.798, subdivision 4; 171.01, subdivisions 37, 49a, by 
1.21 	adding a subdivision; 171.06, subdivisions 1, 2, 3; 171.07, subdivision 1; 174.42, 
1.22 	by adding a subdivision; 174.50, by adding a subdivision; 222.50, subdivision 7; 
1.23 	296A.061; 296A.11; 296A.12; 296A.16; 296A.18, subdivisions 2, 3, 4, 5, 6, 7; 
1.24 	297A.815, subdivision 3; 297A.992, subdivisions 1, 4, 5, 6; 297B.03; 297B.09, 
1.25 	subdivision 1; 299A.465, subdivisions 2, 5, by adding subdivisions; 299D.09; 
1.26 	360.024; 360.305, subdivision 4; 473.167; Laws 2014, chapter 312, article 11, 
1.27 	section 33; Laws 2015, chapter 2, section 3; proposing coding for new law in 
1.28 	Minnesota Statutes, chapters 161; 168; 169; 174; 219; 296A; 297A; 299F; 
1.29 	repealing Minnesota Statutes 2014, sections 161.081, subdivision 3; 473.4051, 
1.30 	subdivision 2.
1.31 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.32 	ARTICLE 1
1.33 	TRANSPORTATION AND PUBLIC SAFETY APPROPRIATIONS

1.34	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
2.1 	The amounts shown in this section summarize direct appropriations, by fund, made 
2.2 	in this article.

2.3			2016
		2017
		Total
	
2.4	General
	$
	113,399,000
	$
	102,079,000
	$
	215,478,000
	
2.5	Airports
		25,109,000
		25,109,000
		50,218,000
	
2.6	C.S.A.H.
		771,437,000
		850,253,000
		1,621,690,000
	
2.7	M.S.A.S.
		210,467,000
		237,802,000
		448,269,000
	
2.8	Special Revenue 
		121,709,000 
		122,336,000 
		244,045,000
	
2.9	H.U.T.D.
		2,426,000
		2,435,000
		4,861,000
	
2.10	Trunk Highway
		1,868,014,000
		2,000,895,000
		3,868,909,000
	
2.11	Total
	$ 
	3,112,561,000 
	$ 
	3,340,909,000
	$ 
	6,453,470,000

2.12
2.13	Sec. 2. TRANSPORTATION 
APPROPRIATIONS.
 					
2.14 	The sums shown in the columns marked 
2.15 	"Appropriations" are appropriated to the 
2.16 	agencies and for the purposes specified in 
2.17 	this article. The appropriations are from 
2.18 	the trunk highway fund, or another named 
2.19 	fund, and are available for the fiscal years 
2.20 	indicated for each purpose. The figures 
2.21 	"2016" and "2017" used in this article mean 
2.22 	that the appropriations listed under them are 
2.23 	available for the fiscal year ending June 30, 
2.24 	2016, or June 30, 2017, respectively. "The 
2.25 	first year" is fiscal year 2016. "The second 
2.26 	year" is fiscal year 2017. "The biennium" is 
2.27 	fiscal years 2016 and 2017.

2.28				APPROPRIATIONS
	
2.29				Available for the Year
	
2.30				Ending June 30
	
2.31					2016
		2017

2.32
2.33	Sec. 3. DEPARTMENT OF 
TRANSPORTATION.

2.34	Subdivision 1.Total Appropriation
 	$ 
	2,887,659,000
	$ 
	3,103,578,000

2.35	Appropriations by Fund
	
2.36		2016
	2017
	
2.37	General
	47,973,000
	27,153,000
	
3.1	Airports
	25,109,000
	25,109,000
	
3.2	C.S.A.H.
	771,167,000
	850,253,000
	
3.3	M.S.A.S.
	210,467,000
	237,802,000
	
3.4	Special Revenue 
	60,145,000 
	60,002,000
	
3.5	Trunk Highway
	1,772,798,000
	1,903,259,000
	
3.6 	The amounts that may be spent for each 
3.7 	purpose are specified in the following 
3.8 	subdivisions.

3.9	Subd. 2.Multimodal Systems
 					
3.10 	(a) Aeronautics

3.11	(1) Airport Development and Assistance
		19,798,000
		19,798,000
	
3.12 	This appropriation is from the state 
3.13 	airports fund and must be spent according 
3.14 	to Minnesota Statutes, section 360.305, 
3.15 	subdivision 4.
3.16 	The base appropriation for fiscal years 2018 
3.17 	and 2019 is $14,298,000 for each year.
3.18 	Notwithstanding Minnesota Statutes, section 
3.19 	16A.28, subdivision 6, this appropriation is 
3.20 	available for five years after appropriation. 
3.21 	If the appropriation for either year is 
3.22 	insufficient, the appropriation for the other 
3.23 	year is available for it.

3.24	(2) Aviation Support and Services
		6,661,000
		6,661,000

3.25	Appropriations by Fund
	
3.26	Airports
	5,311,000
	5,311,000
	
3.27	Trunk Highway
	1,350,000
	1,350,000
	
3.28 	$80,000 in each year is from the state airports 
3.29 	fund for the Civil Air Patrol.

3.30	(3) Airplane Purchase
		5,000,000
		-0-
	
3.31 	This appropriation is from the general fund 
3.32 	to be used in conjunction with proceeds 
3.33 	of the sale of an existing airplane for the 
3.34 	replacement of one state airplane.

4.1	(b) Transit
		27,543,000
		27,567,000

4.2	Appropriations by Fund
	
4.3	General
	23,745,000
	23,745,000
	
4.4	Trunk Highway
	798,000
	822,000
	
4.5	Special Revenue
	3,000,000
	3,000,000
	
4.6 	$100,000 in each year is from the general 
4.7 	fund for the administrative expenses of the 
4.8 	Minnesota Council on Transportation Access 
4.9 	under Minnesota Statutes, section 174.285.
4.10 	$500,000 in each year is from the general fund 
4.11 	for noninfrastructure activities in the safe 
4.12 	routes to school program under Minnesota 
4.13 	Statutes, section 174.40, subdivision 7a.
4.14 	The base appropriation from the general fund 
4.15 	for fiscal years 2018 and 2019 is $21,245,000 
4.16 	in each year.
4.17 	$3,000,000 in each year is from the greater 
4.18 	Minnesota active transportation account in 
4.19 	the special revenue fund under Minnesota 
4.20 	Statutes, section 174.38. This is a onetime 
4.21 	appropriation.

4.22	(c) Passenger Rail
		500,000
		500,000
	
4.23 	This appropriation is from the general 
4.24 	fund for passenger rail system planning, 
4.25 	alternatives analysis, environmental analysis, 
4.26 	design, and preliminary engineering under 
4.27 	Minnesota Statutes, sections 174.632 to 
4.28 	174.636.

4.29	(d) Freight
		5,443,000
		5,452,000

4.30	Appropriations by Fund
	
4.31	General
	256,000
	256,000
	
4.32	Trunk Highway
	5,044,000
	5,196,000
	
4.33	Special Revenue
	143,000
	-0-
	
5.1 	$143,000 in the first year is from the rail 
5.2 	service improvement account in the special 
5.3 	revenue fund  for a grant to the Minnesota 
5.4 	Commercial Railway for emergency 
5.5 	temporary repairs to approximately 6.5 miles 
5.6 	of railroad track described as that portion of 
5.7 	the Minnesota Commercial main running 
5.8 	lead, between M&D Junction in White Bear 
5.9 	Lake and the end of track in Hugo.

5.10	Subd. 3.State Roads

5.11	(a) Operations and Maintenance
		284,030,000
		297,185,000

5.12	(b) Program Planning and Delivery
		249,214,000
		263,625,000
	
5.13 	$130,000 in each year is available for 
5.14 	administrative costs of the targeted group 
5.15 	business program.
5.16 	$300,000 in fiscal year 2016 is for grants 
5.17 	to implement enhanced organizational 
5.18 	effectiveness and innovation review under 
5.19 	article 8, section 29.
5.20 	$266,000 in each year is available for grants 
5.21 	to metropolitan planning organizations 
5.22 	outside the seven-county metropolitan area.
5.23 	$75,000 in each year is available for a 
5.24 	transportation research contingent account 
5.25 	to finance research projects that are 
5.26 	reimbursable from the federal government or 
5.27 	from other sources. If the appropriation for 
5.28 	either year is insufficient, the appropriation 
5.29 	for the other year is available for it.
5.30 	$900,000 in each year is available for 
5.31 	grants for transportation studies outside 
5.32 	the metropolitan area to identify critical 
5.33 	concerns, problems, and issues. These 
5.34 	grants are available: (1) to regional 
6.1 	development commissions; (2) in regions 
6.2 	where no regional development commission 
6.3 	is functioning, to joint powers boards 
6.4 	established under agreement of two or 
6.5 	more political subdivisions in the region to 
6.6 	exercise the planning functions of a regional 
6.7 	development commission; and (3) in regions 
6.8 	where no regional development commission 
6.9 	or joint powers board is functioning, to the 
6.10 	department's district office for that region.
6.11 	$1,000,000 in each year is available 
6.12 	for management of contaminated and 
6.13 	regulated material on property owned by 
6.14 	the Department of Transportation, including 
6.15 	mitigation of property conveyances, facility 
6.16 	acquisition or expansion, chemical release at 
6.17 	maintenance facilities, and spills on the trunk 
6.18 	highway system where there is no known 
6.19 	responsible party. If the appropriation for 
6.20 	either year is insufficient, the appropriation 
6.21 	for the other year is available for it.
6.22 	The base appropriation for program planning 
6.23 	and delivery for fiscal years 2018 and 2019 
6.24 	is $262,625,000 in each year.

6.25	(c) State Road Construction
		967,480,000
		1,025,905,000
	
6.26 	It is estimated that these appropriations will 
6.27 	be funded as follows:

6.28	Appropriations by Fund
	
6.29
6.30	Federal Highway 
Aid
	455,970,000
	462,570,000
	
6.31	Highway User Taxes
	511,510,000
	563,335,000
	
6.32 	The commissioner of transportation shall 
6.33 	notify the chairs and ranking minority 
6.34 	members of the legislative committees with 
6.35 	jurisdiction over transportation finance of 
7.1 	any significant events that should cause these 
7.2 	estimates to change.
7.3 	This appropriation is for the actual 
7.4 	construction, reconstruction, and 
7.5 	improvement of trunk highways, including 
7.6 	design-build contracts and consultant usage 
7.7 	to support these activities. This includes the 
7.8 	cost of actual payment to landowners for 
7.9 	lands acquired for highway rights-of-way, 
7.10 	payment to lessees, interest subsidies, and 
7.11 	relocation expenses.
7.12 	The base appropriation for state road 
7.13 	construction for fiscal years 2018 and 2019 
7.14 	is $970,905,000 in each year.
7.15 	$10,000,000 in each year is for the 
7.16 	transportation economic development 
7.17 	program under Minnesota Statutes, section 
7.18 	174.12.
7.19 	$5,000,000 in the first year is for the 
7.20 	construction of noise barriers on trunk 
7.21 	highways.
7.22 	The commissioner shall transfer $2,000,000 
7.23 	in the first year to the state right-of-way 
7.24 	acquisition loan account under Minnesota 
7.25 	Statutes, section 161.225.
7.26 	The commissioner shall transfer $50,000,000 
7.27 	in the first year and $55,000,000 in the 
7.28 	second year to the county turnback account 
7.29 	under Minnesota Statutes, section 161.082.
7.30 	The commissioner may expend up to one-half 
7.31 	of one percent of the federal appropriations 
7.32 	under this paragraph as grants to opportunity 
7.33 	industrialization centers and other nonprofit 
8.1 	job training centers for job training programs 
8.2 	related to highway construction.
8.3 	The commissioner may transfer up to 
8.4 	$15,000,000 each year to the transportation 
8.5 	revolving loan fund.
8.6 	The commissioner may receive money 
8.7 	covering other shares of the cost of 
8.8 	partnership projects. These receipts are 
8.9 	appropriated to the commissioner for these 
8.10 	projects.
8.11 	The commissioner may expend an amount as 
8.12 	necessary for land acquisition on corridors 
8.13 	of commerce projects funded under article 
8.14 	2, section 3.

8.15	(d) Highway Debt Service
		197,519,000
		240,307,000
	
8.16 	$188,019,000 the first year and $230,807,000 
8.17 	in the second year are for transfer to the state 
8.18 	bond fund. If this appropriation is insufficient 
8.19 	to make all transfers required in the year 
8.20 	for which it is made, the commissioner of 
8.21 	management and budget shall notify the 
8.22 	senate Committee on Finance and the house 
8.23 	of representatives Committee on Ways and 
8.24 	Means of the amount of the deficiency and 
8.25 	shall then transfer that amount under the 
8.26 	statutory open appropriation. Any excess 
8.27 	appropriation cancels to the trunk highway 
8.28 	fund.

8.29	(e) Electronic Communications
		5,326,000
		5,486,000

8.30	Appropriations by Fund
	
8.31	General
	3,000
	3,000
	
8.32	Trunk Highway
	5,323,000
	5,483,000
	
9.1 	The general fund appropriation is to equip 
9.2 	and operate the Roosevelt signal tower for 
9.3 	Lake of the Woods weather broadcasting.

9.4	Subd. 4.Local Roads

9.5	(a) County State-Aid Roads
		771,167,000
		850,253,000
	
9.6 	This appropriation is from the county 
9.7 	state-aid highway fund under Minnesota 
9.8 	Statutes, section 161.081, and chapter 162. 
9.9 	Notwithstanding Minnesota Statutes, section 
9.10 	16A.28, subdivision 6, this appropriation is 
9.11 	available for six years after appropriation.
9.12 	If the commissioner of transportation 
9.13 	determines that a balance remains in the 
9.14 	county state-aid highway fund following 
9.15 	the appropriations and transfers made in 
9.16 	this subdivision, and that the appropriations 
9.17 	made are insufficient for advancing county 
9.18 	state-aid highway projects, an amount 
9.19 	necessary to advance the projects, not to 
9.20 	exceed the balance in the county state-aid 
9.21 	highway fund, is appropriated in each year 
9.22 	to the commissioner. Within two weeks 
9.23 	of a determination under this contingent 
9.24 	appropriation, the commissioner of 
9.25 	transportation shall notify the commissioner 
9.26 	of management and budget and the chairs 
9.27 	and ranking minority members of the 
9.28 	legislative committees with jurisdiction over 
9.29 	transportation finance concerning funds 
9.30 	appropriated.

9.31	(b) Municipal State-Aid Roads
		210,467,000
		237,802,000
	
9.32 	This appropriation is from the municipal 
9.33 	state-aid street fund under Minnesota 
9.34 	Statutes, chapter 162. Notwithstanding 
10.1 	Minnesota Statutes, section 16A.28, 
10.2 	subdivision 6, this appropriation is available 
10.3 	for six years after appropriation.
10.4 	If the commissioner of transportation 
10.5 	determines that a balance remains in the 
10.6 	municipal state-aid street fund following 
10.7 	the appropriations made in this subdivision, 
10.8 	and that the appropriations made are 
10.9 	insufficient for advancing municipal state-aid 
10.10 	street projects, an amount necessary to 
10.11 	advance the projects, not to exceed the 
10.12 	balance in the municipal state-aid street 
10.13 	fund, is appropriated in each year to 
10.14 	the commissioner. Within two weeks 
10.15 	of a determination under this contingent 
10.16 	appropriation, the commissioner of 
10.17 	transportation shall notify the commissioner 
10.18 	of management and budget and the chairs 
10.19 	and ranking minority members of the 
10.20 	legislative committees with jurisdiction over 
10.21 	transportation finance concerning funds 
10.22 	appropriated.

10.23	(c) City Streets and Bridges 
		57,002,000  
		57,002,000
	
10.24 	$28,501,000 in each year is appropriated from 
10.25 	the small city streets and bridges account in 
10.26 	the special revenue fund under Minnesota 
10.27 	Statutes, section 174.54, subdivision 1.
10.28 	$28,501,000 in each year is appropriated from 
10.29 	the larger city streets and bridges account in 
10.30 	the special revenue fund under Minnesota 
10.31 	Statutes, section 174.54, subdivision 2.

10.32
10.33	(d) Local Bridge Replacement and 
Rehabilitation 
		10,750,000
		-0-
	
10.34 	This appropriation is from the general fund 
10.35 	to match federal money and to replace 
11.1 	or rehabilitate local deficient bridges as 
11.2 	provided in Minnesota Statutes, section 
11.3 	174.50. To the extent practicable, the 
11.4 	commissioner shall expend the funds as 
11.5 	provided under Minnesota Statutes, section 
11.6 	174.50, subdivision 6b or 6c. This is a 
11.7 	onetime appropriation.

11.8
11.9	(e) Pedestrian, Bicycle, and Safe Routes to 
Schools
		2,500,000
		2,500,000
	
11.10 	This appropriation is from the general fund 
11.11 	for infrastructure activities in the safe routes 
11.12 	to school program under Minnesota Statutes, 
11.13 	section 174.40, and grants for other bicycle 
11.14 	and pedestrian infrastructure that encourages 
11.15 	active transportation choices.

11.16	(f) Highways on Tribal Lands
		5,000,000
		-0-
	
11.17 	This appropriation is from the general fund 
11.18 	for the purposes of maintenance, design, or 
11.19 	construction of highways on tribal lands.

11.20	Subd. 5.Agency Management

11.21	(a) Agency Services
		42,722,000
		43,519,000

11.22	(b) Buildings
		18,772,000
		19,321,000

11.23	Appropriations by Fund
	
11.24	General
	54,000
	54,000
	
11.25	Trunk Highway
	18,718,000
	19,267,000
	
11.26 	Any money appropriated to the commissioner 
11.27 	of transportation for building construction 
11.28 	for any fiscal year before 2016 is available 
11.29 	to the commissioner of transportation 
11.30 	during the biennium to the extent that the 
11.31 	commissioner spends the money on the 
11.32 	building construction projects for which the 
11.33 	money was originally encumbered during the 
11.34 	fiscal year for which it was appropriated.
12.1 	If the appropriation for either year is 
12.2 	insufficient, the appropriation for the other 
12.3 	year is available for it.

12.4	(c) Tort Claims
		600,000
		600,000
	
12.5 	If the appropriation for either year is 
12.6 	insufficient, the appropriation for the other 
12.7 	year is available for it.

12.8
12.9	Subd. 6.Previous State Road Construction 
Appropriations
 					
12.10 	Any money appropriated to the commissioner 
12.11 	of transportation for state road construction 
12.12 	for any fiscal year before the first year is 
12.13 	available to the commissioner during the 
12.14 	biennium to the extent that the commissioner 
12.15 	spends the money on the state road 
12.16 	construction project for which the money 
12.17 	was originally encumbered during the fiscal 
12.18 	year for which it was appropriated. The 
12.19 	commissioner of transportation shall report to 
12.20 	the commissioner of management and budget 
12.21 	by August 1, 2015, and August 1, 2016, on 
12.22 	a form the commissioner of management 
12.23 	and budget provides, on expenditures made 
12.24 	during the previous fiscal year that are 
12.25 	authorized by this subdivision.

12.26	Subd. 7.Contingent Appropriation
 					
12.27 	The commissioner of transportation, with 
12.28 	the approval of the governor and the 
12.29 	written approval of at least five members 
12.30 	of a group consisting of the members of 
12.31 	the Legislative Advisory Commission 
12.32 	under Minnesota Statutes, section 3.30, 
12.33 	and the ranking minority members of the 
12.34 	legislative committees with jurisdiction over 
12.35 	transportation finance, may transfer all or 
13.1 	part of the unappropriated balance in the 
13.2 	trunk highway fund to an appropriation: 
13.3 	(1) for trunk highway design, construction, 
13.4 	or inspection in order to take advantage of 
13.5 	an unanticipated receipt of income to the 
13.6 	trunk highway fund or to take advantage 
13.7 	of federal advanced construction funding; 
13.8 	(2) for trunk highway maintenance in order 
13.9 	to meet an emergency; or (3) to pay tort 
13.10 	or environmental claims. Nothing in this 
13.11 	subdivision authorizes the commissioner 
13.12 	to increase the use of federal advanced 
13.13 	construction funding beyond amounts 
13.14 	specifically authorized. Any transfer as 
13.15 	a result of the use of federal advanced 
13.16 	construction funding must include an 
13.17 	analysis of the effects on the long-term 
13.18 	trunk highway fund balance. The amount 
13.19 	transferred is appropriated for the purpose of 
13.20 	the account to which it is transferred.

13.21	Sec. 4. METROPOLITAN COUNCIL
 	$
	52,249,000
	$
	61,630,000
	
13.22 	This appropriation is from the general fund 
13.23 	for transit system operations under Minnesota 
13.24 	Statutes, sections 473.371 to 473.449.
13.25 	The base appropriation is $68,276,000 for 
13.26 	fiscal year 2018 and $74,141,000 for fiscal 
13.27 	year 2019.

13.28	Sec. 5. DEPARTMENT OF PUBLIC SAFETY

13.29	Subdivision 1.Total Appropriation
 	$
	172,741,000
	$
	176,071,000

13.30	Appropriations by Fund
	
13.31		2016
	2017
	
13.32	General
	13,169,000
	13,288,000
	
13.33	Special Revenue
	61,564,000
	62,334,000
	
13.34	H.U.T.D.
	2,192,000
	2,213,000
	
13.35	Trunk Highway
	95,816,000
	98,236,000
	
14.1 	The amounts that may be spent for each 
14.2 	purpose are specified in the following 
14.3 	subdivisions.

14.4	Subd. 2.Administration and Related Services 

14.5	(a) Office of Communications
		517,000
		530,000

14.6	Appropriations by Fund
	
14.7	General
	113,000
	115,000
	
14.8	Trunk Highway
	404,000
	415,000

14.9	(b) Public Safety Support
		8,715,000
		8,804,000

14.10	Appropriations by Fund
	
14.11	General
	3,662,000
	3,667,000
	
14.12	H.U.T.D.
	1,366,000
	1,366,000
	
14.13	Trunk Highway
	3,687,000
	3,771,000
	
14.14 	$130,000 in each year is from the general 
14.15 	fund for the additional position of labor 
14.16 	relations manager.
14.17 	$380,000 in each year is from the general 
14.18 	fund for payment of public safety officer 
14.19 	survivor benefits under Minnesota Statutes, 
14.20 	section 299A.44. If the appropriation for 
14.21 	either year is insufficient, the appropriation 
14.22 	for the other year is available for it.
14.23 	$1,367,000 in each year is from the general 
14.24 	fund to be deposited in the public safety 
14.25 	officer's benefit account. This money 
14.26 	is available for reimbursements under 
14.27 	Minnesota Statutes, section 299A.465.
14.28 	$600,000 in each year is from the general 
14.29 	fund and $100,000 in each year is from the 
14.30 	trunk highway fund for soft body armor 
14.31 	reimbursements under Minnesota Statutes, 
14.32 	section 299A.38.

14.33	(c) Technology and Support Service
		3,685,000
		3,685,000

15.1	Appropriations by Fund
	
15.2	General
	1,322,000
	1,322,000
	
15.3	H.U.T.D. 
	19,000
	19,000
	
15.4	Trunk Highway
	2,344,000
	2,344,000

15.5	Subd. 3.State Patrol

15.6	(a) Patrolling Highways
		81,756,000
		83,857,000

15.7	Appropriations by Fund
	
15.8	General
	37,000
	37,000
	
15.9	H.U.T.D. 
	807,000
	828,000
	
15.10	Trunk Highway
	80,912,000
	82,992,000
	
15.11 	$707,000 in the first year and $720,000 in the 
15.12 	second year are from the highway user tax 
15.13 	distribution fund for the Vehicle Crimes Unit, 
15.14 	to investigate: (1) registration tax and motor 
15.15 	vehicle sales tax liabilities from individuals 
15.16 	and businesses that currently do not pay 
15.17 	all taxes owed; and (2) illegal or improper 
15.18 	activity related to sale, transfer, titling, and 
15.19 	registration of motor vehicles.
15.20 	$500,000 is appropriated from the trunk 
15.21 	highway fund in fiscal year 2016 to assist in 
15.22 	the purchase of a single engine aircraft for 
15.23 	the State Patrol.

15.24	(b) Commercial Vehicle Enforcement
		8,023,000
		8,257,000

15.25	(c) Capitol Security
		8,035,000
		8,147,000
	
15.26 	This appropriation is from the general fund.
15.27 	The commissioner may not: (1) spend 
15.28 	any money from the trunk highway fund 
15.29 	for capitol security; or (2) permanently 
15.30 	transfer any state trooper from the patrolling 
15.31 	highways activity to capitol security.
15.32 	The commissioner may not transfer any 
15.33 	money appropriated to the commissioner 
16.1 	under this section: (1) to capitol security; or 
16.2 	(2) from capitol security.

16.3	Subd. 4.Driver and Vehicle Services

16.4	(a) Vehicle Services
		30,027,000
		30,291,000
	
16.5 	This appropriation is from the vehicle 
16.6 	services operating account in the special 
16.7 	revenue fund.
16.8 	Of these appropriations, $59,000 in each year 
16.9 	is for the creation of a Data Services Unit 
16.10 	within the Division of Driver and Vehicle 
16.11 	Services.

16.12	(b) Driver Services 
		30,166,000
		30,655,000
	
16.13 	This appropriation is from the driver services 
16.14 	operating account in the special revenue fund.
16.15 	$31,000 in each year is for the creation of a 
16.16 	Data Services Unit within the Division of 
16.17 	Driver and Vehicle Services.
16.18 	$74,000 in the first year and $124,000 in 
16.19 	the second year are for staff costs related to 
16.20 	insurance attestation requirements. This is a 
16.21 	onetime appropriation.
16.22 	$15,000 in the first year is for costs related to 
16.23 	creating a driving privilege license.

16.24	Subd. 5.Traffic Safety
 		446,000
		457,000
	
16.25 	The commissioner of public safety shall 
16.26 	spend 50 percent of the money available to 
16.27 	the state under United States Code, title 23, 
16.28 	section 164, and the remaining 50 percent 
16.29 	must be transferred to the commissioner 
16.30 	of transportation for hazard elimination 
16.31 	activities under United States Code, title 23, 
16.32 	section 152.

16.33	Subd. 6.Pipeline Safety
 		1,371,000
		1,388,000
	
17.1 	This appropriation is from the pipeline safety 
17.2 	account in the special revenue fund.

17.3	Sec. 6. DEPARTMENT OF REVENUE
 	$
	234,000
	$
	222,000
	
17.4 	$234,000 in fiscal year 2016 and $222,000 
17.5 	in fiscal year 2017 are appropriated from 
17.6 	the highway user tax distribution fund to 
17.7 	the commissioner of revenue for tax system 
17.8 	management costs.

17.917.10
17.11
	Sec. 7. BOARD OF WATER AND SOIL 
RESOURCES AND DEPARTMENT OF 
NATURAL RESOURCES
 	$
	270,000
	$
		
17.12 	(a) $135,000 to the Board of Water and Soil 
17.13 	Resources and $135,000 to the commissioner 
17.14 	of natural resources are appropriated in fiscal 
17.15 	year 2016 from the state aid administrative 
17.16 	account in the county state-aid highway fund 
17.17 	to study the feasibility of the state assuming 
17.18 	administration of the section 404 permit 
17.19 	program of the federal Clean Water Act. The 
17.20 	United States Army Corps of Engineers, 
17.21 	St. Paul District; and the United States 
17.22 	Environmental Protection Agency shall be 
17.23 	consulted with during the development of 
17.24 	the study. These appropriations are available 
17.25 	until June 30, 2017. The study shall identify:
17.26 	(1) the federal requirements for state 
17.27 	assumption of the 404 program;
17.28 	(2) the potential extent of assumption, 
17.29 	including those waters that would remain 
17.30 	under the jurisdiction of the Army Corps 
17.31 	of Engineers due to the prohibition of 404 
17.32 	assumption in certain waters as defined in 
17.33 	section 404(g)(1) of the federal Clean Water 
17.34 	Act;
18.1 	(3) differences in waters regulated under 
18.2 	Minnesota laws compared to waters of the 
18.3 	United States, including complications and 
18.4 	potential solutions to address the current 
18.5 	uncertainties relating to determining waters 
18.6 	of the United States;
18.7 	(4) measures to ensure the protection of 
18.8 	aquatic resources consistent with the Clean 
18.9 	Water Act, Wetland Conservation Act, and 
18.10 	the public waters program administered by 
18.11 	the Department of Natural Resources;
18.12 	(5) changes to existing state law, including 
18.13 	changes to current implementation structure 
18.14 	and processes, that would need to occur 
18.15 	to allow for state assumption of the 404 
18.16 	program;
18.17 	(6) new agency responsibilities for 
18.18 	implementing federal requirements 
18.19 	and procedures that would become the 
18.20 	obligation of the state under assumption, 
18.21 	including the staff and resources needed for 
18.22 	implementation;
18.23 	(7) the estimated costs and savings that would 
18.24 	accrue to affected units of government;
18.25 	(8) the effect on application review and 
18.26 	approval processes and time frames;
18.27 	(9) alternatives to assumption that would also 
18.28 	achieve the goals of regulatory simplification, 
18.29 	efficiency, and reduced permitting times;
18.30 	(10) options for financing any additional 
18.31 	costs of implementation; and
18.32 	(11) other information as determined by the 
18.33 	board and commissioner.
19.1 	(b) The board and commissioner shall 
19.2 	involve stakeholders in the development of a 
19.3 	plan of the study required under this section.
19.4 	(c) By January 15, 2017, the board and 
19.5 	commissioner must report the study to the 
19.6 	legislative policy and finance committees and 
19.7 	divisions with jurisdiction over environment 
19.8 	and natural resources.

19.9	Sec. 8. TRANSFER
 	$
	3,000,000
	$
	3,000,000
	
19.10 	$3,000,000 in fiscal year 2016 and $3,000,000 
19.11 	in fiscal year 2017 are transferred from the 
19.12 	general fund to the greater Minnesota active 
19.13 	transportation account in the special revenue 
19.14 	fund under Minnesota Statutes, section 
19.15 	174.38. These are onetime transfers.

19.16 	Sec. 9. APPROPRIATION.
 19.17 	(a) $8,000 in fiscal year 2016 and $8,000 in fiscal year 2017 are appropriated from 
19.18 	the general fund to the Legislative Coordinating Commission for expenses related to the 
19.19 	road-user charge working group.
19.20 	(b) $165,000 in fiscal year 2016 and $95,000 in fiscal year 2017 are appropriated 
19.21 	from the general fund to the commissioner of transportation for administrative expenses 
19.22 	related to the road-user charge working group, including the costs of consultants.

19.23 	ARTICLE 2
19.24 	TRUNK HIGHWAY BONDING

19.25 	Section 1. BOND SALE AUTHORIZATION.
 19.26 	To provide the money appropriated in this article from the bond proceeds account in 
19.27 	the trunk highway fund, the commissioner of management and budget shall sell and issue 
19.28 	bonds of the state in an amount up to $1,001,000,000 in the manner, upon the terms, and 
19.29 	with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the 
19.30 	Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested 
19.31 	by the commissioner of transportation. The proceeds of the bonds, except accrued interest 
20.1 	and any premium received from the sale of the bonds, must be deposited in the bond 
20.2 	proceeds account in the trunk highway fund.

20.3	Sec. 2. BOND APPROPRIATIONS.
 	
20.4 	The sums shown in the column under "Appropriations" are appropriated from the 
20.5 	bond proceeds account in the trunk highway fund to the state agencies or officials indicated, 
20.6 	to be spent for public purposes. Appropriations of bond proceeds must be spent as 
20.7 	authorized by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified, 
20.8 	money appropriated in this article for a capital program or project may be used to pay state 
20.9 	agency staff costs that are attributed directly to the capital program or project in accordance 
20.10 	with accounting policies adopted by the commissioner of management and budget.

20.11	SUMMARY
	
20.12	Department of Transportation
	$
	1,000,000,000
	
20.13	Department of Management and Budget
		1,000,000
	
20.14	TOTAL
	$
	1,001,000,000

20.15						APPROPRIATIONS

20.16
20.17
20.18	Sec. 3. DEPARTMENT OF 
TRANSPORTATION CORRIDORS OF 
COMMERCE
 			$
	800,000,000
	
20.19 	(a) The appropriation in this section is 
20.20 	to the commissioner of transportation for 
20.21 	the corridors of commerce program under 
20.22 	Minnesota Statutes, section 161.088, and is 
20.23 	available in the amounts of $200,000,000 
20.24 	in each fiscal year from 2016 to 2019. The 
20.25 	commissioner may use up to 17 percent of 
20.26 	the amount each year for program delivery.
20.27 	(b) In any fiscal year covered by this 
20.28 	appropriation, the commissioner may 
20.29 	identify projects based on previous selection 
20.30 	processes or may perform a new selection.
20.31 	(c) The appropriation in this section cancels 
20.32 	as specified under Minnesota Statutes, section 
20.33 	16A.642, except that the commissioner of 
20.34 	management and budget shall count the start 
20.35 	of authorization for issuance of state bonds 
21.1 	as the first day of the fiscal year during 
21.2 	which the bonds are available to be issued as 
21.3 	specified under paragraph (a), and not as the 
21.4 	date of enactment of this section.

21.5
21.6	Sec. 4. TRANSPORTATION ECONOMIC 
DEVELOPMENT PROGRAM
 			$
	200,000,000
	
21.7 	(a) This appropriation is for the transportation 
21.8 	economic development program under 
21.9 	Minnesota Statutes, section 174.12, and is 
21.10 	available in the amounts of $50,000,000 in 
21.11 	each fiscal year from 2016 to 2019. The 
21.12 	commissioner may use up to 17 percent of 
21.13 	the amount each year for program delivery.
21.14 	(b) The appropriation in this section cancels 
21.15 	as specified under Minnesota Statutes, section 
21.16 	16A.642, except that the commissioner of 
21.17 	management and budget shall count the start 
21.18 	of authorization for issuance of state bonds 
21.19 	as the first day of the fiscal year during 
21.20 	which the bonds are available to be issued as 
21.21 	specified under paragraph (a), and not as the 
21.22 	date of enactment of this section.

21.23	Sec. 5. BOND SALE EXPENSES
 			$
	1,000,000
	
21.24 	This appropriation is to the commissioner 
21.25 	of management and budget for bond sale 
21.26 	expenses under Minnesota Statutes, sections 
21.27 	16A.641, subdivision 8; and 167.50, 
21.28 	subdivision 4, and is available in the amounts 
21.29 	of $250,000 in each fiscal year from 2016 to 
21.30 	2019.

21.31 	Sec. 6. EFFECTIVE DATE.
 21.32 	This article is effective July 1, 2015.

22.1 	ARTICLE 3
22.2 	GROSS RECEIPTS TAX

22.3 	Section 1. Minnesota Statutes 2014, section 296A.061, is amended to read:
22.4 	296A.061 CANCELLATION OR NONRENEWAL OF LICENSES.
22.5 	The commissioner may cancel a license or not renew a license if one of the following 
22.6 	conditions occurs:
22.7 	(1) the license holder has not filed a petroleum tax return or report for at least one year;
22.8 	(2) the license holder has not filed a gross receipts tax return for at least one year;
22.9 	(3) the license holder has not reported any petroleum tax liability or gross receipts 
22.10 	tax liability on the license holder's returns or reports for at least one year; or
22.11 	(3)(4) the license holder requests cancellation of the license.

22.12 	Sec. 2. [296A.085] MOTOR FUELS GROSS RECEIPTS TAX.
22.13 		Subdivision 1.Imposition. A tax is imposed on the wholesale business of selling 
22.14 	the means or substance used for propelling vehicles on the highways of this state. The tax 
22.15 	is imposed at the rate of 6.5 percent of gross receipts derived by a distributor from the first 
22.16 	sale at wholesale of gasoline, gasoline blended with ethanol, agricultural alcohol gasoline, 
22.17 	and special fuels within this state for use in motor vehicles.
22.18 		Subd. 2.Exemptions. Subdivision 1 does not apply to gasoline, denatured ethanol, 
22.19 	special fuel, or alternative fuel purchased by an entity described in section 296A.07, 
22.20 	subdivision 4, or 296A.08, subdivision 3.
22.21 		Subd. 3.Conversion of tax rate. (a) Annually on or before August 1, the 
22.22 	commissioner shall determine the applicable gross receipts motor fuels tax rate per gallon. 
22.23 	The tax per gallon shall be the greater of either:
22.24 	(1) 6.5 percent of $2.50; or
22.25 	(2) 6.5 percent of the prior fiscal year's average wholesale gasoline price per 
22.26 	gallon in Minnesota for all grades by refiners, as published by the United States Energy 
22.27 	Information Administration and rounded to the nearest tenth of a cent per gallon. The 
22.28 	wholesale price used must not include any tax or fee assessed by the state of Minnesota 
22.29 	or the United States government.
22.30 	(b) The announced rate is effective for a 12-month period consisting of the next 
22.31 	October 1 to September 30. The commissioner shall publish on the department's Web site 
22.32 	the total of the gross receipts tax and the excise tax.
22.33 		Subd. 4.Administrative provisions. Except as otherwise provided in this chapter, 
22.34 	the relevant audit, assessment, refund, penalty, interest, enforcement, collection remedies, 
23.1 	appeal, and administrative provisions of chapter 289A apply to taxes imposed under 
23.2 	this section.
23.3 		Subd. 5.Deposit of revenues. The commissioner shall deposit the revenues from 
23.4 	the gross receipts tax into the highway user tax distribution fund.

23.5 	EFFECTIVE DATE. This section is effective October 1, 2015, and applies to 
23.6 	gross receipts attributable to the described products and derived by a distributor on or 
23.7 	after that day.

23.8 	Sec. 3. Minnesota Statutes 2014, section 296A.11, is amended to read:
23.9 	296A.11 SELLER MAY COLLECT TAX.
23.10 	A person who directly or indirectly pays a gasoline or special fuel tax or motor fuels 
23.11 	gross receipts tax as provided in this chapter and who does not in fact use the gasoline or 
23.12 	special fuel in motor vehicles in this state or receive, store, or withdraw it from storage 
23.13 	to be used personally for the purpose of producing or generating power for propelling 
23.14 	aircraft, but sells or otherwise disposes of the same, except as provided in section 296A.16, 
23.15 	subdivision 3, is hereby authorized to collect, from the person to whom the gasoline or 
23.16 	special fuel is so sold or disposed of, the tax so paid, and is hereby required, upon request, 
23.17 	to make, sign, and deliver to such person an invoice of such sale or disposition. The sums 
23.18 	collected must be held as a special fund in trust for the state of Minnesota.

23.19 	Sec. 4. Minnesota Statutes 2014, section 296A.12, is amended to read:
23.20 	296A.12 GASOLINE AND SPECIAL FUEL TAX AND MOTOR FUELS 
23.21 	GROSS RECEIPTS TAX IN LIEU OF OTHER TAXES.
23.22 	Gasoline and special fuel excise taxes and motor fuels gross receipts tax shall be 
23.23 	in lieu of all other taxes imposed upon the business of selling or dealing in gasoline or 
23.24 	special fuel, whether imposed by the state or by any of its political subdivisions, but are in 
23.25 	addition to all ad valorem taxes now imposed by law. Nothing in this chapter is construed 
23.26 	as prohibiting the governing body of any city of this state from licensing and regulating 
23.27 	sucha business where its authority is conferred by state law or city charter.

23.28 	Sec. 5. Minnesota Statutes 2014, section 296A.16, is amended to read:
23.29 	296A.16 REFUND OR CREDIT.
23.30 		Subdivision 1.Credit or refund of gasoline or special fuel tax paid. The 
23.31 	commissioner shall allow the distributor credit or refund of the excise and motor fuels 
23.32 	gross receipts tax paid on gasoline and special fuel:
24.1 	(1) exported or sold for export from the state, other than in the supply tank of a 
24.2 	motor vehicle or of an aircraft;
24.3 	(2) sold to the United States government to be used exclusively in performing its 
24.4 	governmental functions and activities or to any "cost plus a fixed fee" contractor employed 
24.5 	by the United States government on any national defense project;
24.6 	(3) if the fuel is placed in a tank used exclusively for residential heating;
24.7 	(4) destroyed by accident while in the possession of the distributor;
24.8 	(5) in error;
24.9 	(6) in the case of gasoline only, sold for storage in an on-farm bulk storage tank, if 
24.10 	the tax was not collected on the sale; and
24.11 	(7) in such other cases as the commissioner may permit, consistent with the provisions 
24.12 	of this chapter and other laws relating to the gasoline and special fuel excise taxes.
24.13 		Subd. 2.Fuel used in other vehicle; claim for refund. Any person who buys and 
24.14 	uses gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles 
24.15 	except as provided in clause (2), or motorboats, or special fuel for a qualifying purpose 
24.16 	other than use in licensed motor vehicles, and who paid the excise or gross receipts tax 
24.17 	directly or indirectly through the amount of the tax being included in the price of the 
24.18 	gasoline or special fuel, or otherwise, shall be reimbursed and repaid the amount of the 
24.19 	tax paid upon filing with the commissioner a claim for refund in the form and manner 
24.20 	prescribed by the commissioner, and containing the information the commissioner shall 
24.21 	require. By signing any such claim which is false or fraudulent, the applicant shall be 
24.22 	subject to the penalties provided in this chapter for knowingly making a false claim. 
24.23 	The claim shall set forth the total amount of the gasoline so purchased and used by the 
24.24 	applicant other than in motor vehicles, or special fuel purchased and used by the applicant 
24.25 	other than in licensed motor vehicles, and shall state when and for what purpose it was 
24.26 	used. When a claim contains an error in computation or preparation, the commissioner 
24.27 	is authorized to adjust the claim in accordance with the evidence shown on the claim or 
24.28 	other information available to the commissioner. The commissioner, on being satisfied 
24.29 	that the claimant is entitled to the payments, shall approve the claim and transmit it to the 
24.30 	commissioner of management and budget. The words "gasoline" or "special fuel" as used 
24.31 	in this subdivision do not include aviation gasoline or special fuel for aircraft. Gasoline or 
24.32 	special fuel bought and used for a "qualifying purpose" means:
24.33 	(1) Gasoline or special fuel used in carrying on a trade or business, used on a farm 
24.34 	situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" 
24.35 	have the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue 
24.36 	Code as defined in section 289A.02, subdivision 7.
25.1 	(2) Gasoline or special fuel used for off-highway business use.
25.2 	(i) "Off-highway business use" means any use off the public highway by a person in 
25.3 	that person's trade, business, or activity for the production of income.
25.4 	(ii) Off-highway business use includes use of a passenger snowmobile off the public 
25.5 	highways as part of the operations of a resort as defined in section 157.15, subdivision 11; 
25.6 	and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not 
25.7 	including fuel consumed during idling time.
25.8 	(iii) Off-highway business use does not include use as a fuel in a motor vehicle 
25.9 	which, at the time of use, is registered or is required to be registered for highway use under 
25.10 	the laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu 
25.11 	of a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in 
25.12 	this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the 
25.13 	fuel tank of a licensed motor vehicle and must be stored in a separate supply tank.
25.14 	(3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, 
25.15 	manufactured in Minnesota, and shipped by interstate carrier to destinations in other 
25.16 	states or foreign countries.
25.17 		Subd. 3.Destruction by accident; refund to dealer. Notwithstanding the 
25.18 	provisions of subdivision 1, the commissioner shall allow a dealer a refund of:
25.19 	(1) the tax paid by the distributor on, or gross receipts from the sale of,  gasoline, 
25.20 	undyed diesel fuel, or undyed kerosene destroyed by accident while in the possession of 
25.21 	the dealer; or
25.22 	(2) the tax paid by a distributor or special fuels dealer on, or gross receipts from the 
25.23 	sale of,  other special fuels destroyed by accident while in the possession of the dealer.
25.24 		Subd. 4.Refrigerator units; refunds. Notwithstanding the provisions of 
25.25 	subdivision 1, the commissioner shall allow a special fuel dealer a refund of the tax paid 
25.26 	on, or gross receipts from the sale of,  fuel sold directly into a supply tank of a refrigeration 
25.27 	unit with a separate engine and used exclusively by that refrigeration unit. A claim for 
25.28 	refund may be filed as provided in this section.
25.29 		Subd. 4a.Undyed kerosene; refunds. Notwithstanding subdivision 1, the 
25.30 	commissioner shall allow a refund of the tax paid on, or gross receipts from the sale of,  
25.31 	undyed kerosene used exclusively for a purpose other than as fuel for a motor vehicle 
25.32 	using the streets and highways. To obtain a refund, the person making the sale to an end 
25.33 	user must meet the Internal Revenue Service requirements for sales from a blocked pump. 
25.34 	A claim for a refund may be filed as provided in this section.
25.35 		Subd. 4b.Racing gasoline; refunds. Notwithstanding subdivision 1, the 
25.36 	commissioner shall allow a licensed distributor a refund of the tax paid on, or gross 
26.1 	receipts from the sale of,  leaded gasoline of 110 octane or more that does not meet ASTM 
26.2 	specification D4814 for gasoline and that is sold in bulk for use in nonregistered motor 
26.3 	vehicles. A claim for a refund may be filed as provided for in this section.
26.4 		Subd. 5.Qualifying service station credit. Notwithstanding any other provision of 
26.5 	law to the contrary, the tax imposed on gasoline, undyed diesel fuel, or undyed kerosene, 
26.6 	together with the amount attributable to gross receipts tax on these fuels,  delivered to a 
26.7 	qualified service station may not exceed, or must be reduced to, a rate not more than 
26.8 	three cents per gallon above the state tax rate imposed on such products sold by a service 
26.9 	station in a contiguous state located within the distance indicated in this subdivision. A 
26.10 	distributor shall be allowed a credit or refund for the amount of reduction computed in 
26.11 	accordance with this subdivision. For purposes of this subdivision, a "qualifying service 
26.12 	station" means a service station located within 7.5 miles, measured by the shortest route 
26.13 	by public road, from a service station selling like product in the contiguous state.
26.14 		Subd. 7.Civil penalty for filing false claim. A person who violates section 
26.15 	296A.23, subdivision 1, shall forfeit the full amount of the claim. In addition, a person who 
26.16 	is convicted under section 296A.23 for filing a false statement or claim shall, in addition 
26.17 	to any criminal penalties imposed, be prohibited from filing with the commissioner any 
26.18 	claim for refund upon gasoline purchased within six months after such conviction.
26.19 		Subd. 8.Appropriation. There is appropriated to the persons entitled to refund or 
26.20 	credit under this section, from the fund or account in the state treasury to which the money 
26.21 	was credited, an amount sufficient to make the credit or refund.

26.22 	Sec. 6. Minnesota Statutes 2014, section 296A.18, subdivision 2, is amended to read:
26.23 		Subd. 2.Motorboat. Approximately 1-1/2 percent of all gasoline received in this 
26.24 	state and 1-1/2 percent of all gasoline produced or brought into this state, except gasoline 
26.25 	used for aviation purposes, is being used as fuel for the operation of motorboats on the 
26.26 	waters of this state and of the total revenue derived from the imposition of the gasoline 
26.27 	fuel tax and motor fuels gross receipts tax on gasoline for uses other than for aviation 
26.28 	purposes, 1-1/2 percent of the revenue is the amount of tax on fuel used in motorboats 
26.29 	operated on the waters of this state. The amount of unrefunded tax paid on gasoline used 
26.30 	for motor boat purposes as computed in this chapter shall be paid into the state treasury 
26.31 	and credited to a water recreation account in the special revenue fund for acquisition, 
26.32 	development, maintenance, and rehabilitation of sites for public access and boating 
26.33 	facilities on public waters; lake and river improvement; and boat and water safety.

26.34 	Sec. 7. Minnesota Statutes 2014, section 296A.18, subdivision 3, is amended to read:
27.1 		Subd. 3.Snowmobile. Approximately one percent of all gasoline received in and 
27.2 	produced or brought into this state, except gasoline used for aviation purposes, is being 
27.3 	used as fuel for the operation of snowmobiles in this state, and of the total revenue derived 
27.4 	from the imposition of the gasoline fuel tax and motor fuels gross receipts tax on gasoline 
27.5 	for uses other than for aviation purposes, one percent of such revenues is the amount of 
27.6 	tax on fuel used in snowmobiles operated in this state.

27.7 	Sec. 8. Minnesota Statutes 2014, section 296A.18, subdivision 4, is amended to read:
27.8 		Subd. 4.All-terrain vehicle. Approximately 0.27 of one percent of all gasoline 
27.9 	received in or produced or brought into this state, except gasoline used for aviation 
27.10 	purposes, is being used for the operation of all-terrain vehicles in this state, and of the 
27.11 	total revenue derived from the imposition of the gasoline fuel tax and motor fuels gross 
27.12 	receipts tax on gasoline, 0.27 of one percent is the amount of tax on fuel used in all-terrain 
27.13 	vehicles operated in this state.

27.14 	Sec. 9. Minnesota Statutes 2014, section 296A.18, subdivision 5, is amended to read:
27.15 		Subd. 5.Off-highway motorcycles. Approximately 0.046 of one percent of 
27.16 	all gasoline received or produced in or brought into this state, except gasoline used for 
27.17 	aviation purposes, is being used for the operation of off-highway motorcycles in this state, 
27.18 	and of the total revenue derived from the imposition of the gasoline fuel tax and motor 
27.19 	fuels gross receipts tax on gasoline  for uses other than for aviation purposes, 0.046 of one 
27.20 	percent is the amount of tax on fuel used in off-highway motorcycles operated in this state.

27.21 	Sec. 10. Minnesota Statutes 2014, section 296A.18, subdivision 6, is amended to read:
27.22 		Subd. 6.Off-road vehicle. Approximately 0.164 of one percent of all gasoline 
27.23 	received or produced in or brought into this state, except gasoline used for aviation 
27.24 	purposes, is being used for the off-road operation of off-road vehicles, as defined in 
27.25 	section 84.797, in this state, and of the total revenue derived from the imposition of the 
27.26 	gasoline fuel tax and motor fuels gross receipts tax on gasoline for uses other than aviation 
27.27 	purposes, 0.164 of one percent is the amount of tax on fuel used for off-road operation 
27.28 	of off-road vehicles in this state.

27.29 	Sec. 11. Minnesota Statutes 2014, section 296A.18, subdivision 7, is amended to read:
27.30 		Subd. 7.Forest road. Approximately 0.116 percent of the total annual unrefunded 
27.31 	revenue from the gasoline fuel tax and motor fuels gross receipts tax on gasoline on all 
27.32 	gasoline and special fuel received in, produced, or brought into this state, except gasoline 
28.1 	and special fuel used for aviation purposes, is derived from the operation of motor vehicles 
28.2 	on state forest roads and county forest access roads. This revenue, together with interest 
28.3 	and penalties for delinquency in payment, paid or collected pursuant to the provisions of 
28.4 	this chapter, is appropriated from the highway user tax distribution fund and must be 
28.5 	transferred and credited in equal installments on July 1 and January 1 to the state forest 
28.6 	road account established in section 89.70. Of this amount, 0.0605 percent is annually 
28.7 	derived from motor vehicles operated on state forest roads and 0.0555 percent is annually 
28.8 	derived from motor vehicles operated on county forest access roads in this state. An 
28.9 	amount equal to 0.0555 percent of the unrefunded revenue must be annually transferred to 
28.10 	counties for the management and maintenance of county forest roads.

28.11 	Sec. 12. REVISOR'S INSTRUCTION.
 28.12 	In Minnesota Statutes, the revisor of statutes shall rename Minnesota Statutes, 
28.13 	chapter 296A, to be "Tax on Petroleum and Other Fuels; Gross Receipts Tax."

28.14 	ARTICLE 4
28.15 	VEHICLE REGISTRATION TAX

28.16 	Section 1. Minnesota Statutes 2014, section 168.013, subdivision 1a, is amended to read:
28.17 		Subd. 1a.Passenger automobile; hearse. (a) On passenger automobiles as defined 
28.18 	in section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax 
28.19 	shall be an amount equal to a combination of the following: $10  for those vehicles with 
28.20 	registration periods beginning on or before June 30, 2018; and $20 for those vehicles 
28.21 	with registration periods on or after July 1, 2018, plus an additional tax equal to 1.25 a 
28.22 	percentage of 1.5 percent of the base value as specified in paragraph (h).
28.23 	(b) Subject to the classification provisions herein, "base value" means the 
28.24 	manufacturer's suggested retail price of the vehicle including destination charge using list 
28.25 	price information published by the manufacturer or determined by the registrar if no 
28.26 	suggested retail price exists, and shall not include the cost of each accessory or item of 
28.27 	optional equipment separately added to the vehicle and the suggested retail price.
28.28 	(c) If the manufacturer's list price information contains a single vehicle identification 
28.29 	number followed by various descriptions and suggested retail prices, the registrar shall 
28.30 	select from those listings only the lowest price for determining base value.
28.31 	(d) If unable to determine the base value because the vehicle is specially constructed, 
28.32 	or for any other reason, the registrar may establish such value upon the cost price to the 
28.33 	purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales 
28.34 	or use tax or any local sales or other local tax.
29.1 	(e) The registrar shall classify every vehicle in its proper base value class as follows:

29.2		FROM
		TO
	
29.3	$
	0
		$ 199.99
	
29.4	$
	200
		$ 399.99
	
29.5 	and thereafter a series of classes successively set in brackets having a spread of $200 
29.6 	consisting of such number of classes as will permit classification of all vehicles.
29.7 	(f) The base value for purposes of this section shall be the middle point between 
29.8 	the extremes of its class.
29.9 	(g) The registrar shall establish the base value, when new, of every passenger 
29.10 	automobile and hearse registered prior to the effective date of Extra Session Laws 1971, 
29.11 	chapter 31, using list price information published by the manufacturer or any nationally 
29.12 	recognized firm or association compiling such data for the automotive industry. If unable 
29.13 	to ascertain the base value of any registered vehicle in the foregoing manner, the registrar 
29.14 	may use any other available source or method. The registrar shall calculate tax using base 
29.15 	value information available to dealers and deputy registrars at the time the application for 
29.16 	registration is submitted. The tax on all previously registered vehicles shall be computed 
29.17 	upon the base value thus determined taking into account the depreciation provisions of 
29.18 	paragraph (h).
29.19 	(h) The annual additional tax must be computed upon athe specified percentage of 
29.20 	1.5 percent of the base value as follows: during the first year of vehicle life, upon 100 
29.21 	percent of the base value; for the second year, 90 percent of such value; for the third year, 
29.22 	80 percent of such value; for the fourth year, 70 percent of such value; for the fifth year, 60 
29.23 	percent of such value; for the sixth year, 50 percent of such value; for the seventh year, 
29.24 	40 percent of such value; for the eighth year, 30 percent of such value; for the ninth 
29.25 	year, 20 percent of such value; for the tenth year, ten percent of such value; for the 11th 
29.26 	and each succeeding year, the sum of $25.
29.27 	(i) In no event shall the annual additional tax be less than $25.
29.28 	(j) For any vehicle previously registered in Minnesota, the annual additional tax 
29.29 	due under this subdivision must not exceed the smallest amount of annual additional 
29.30 	tax previously paid or due on the vehicle.

29.31 	EFFECTIVE DATE. This section is effective the day following final enactment 
29.32 	and applies to any tax for a registration period that begins on or after September 1, 2015.

30.1 	ARTICLE 5
30.2 	METROPOLITAN TRANSIT IMPROVEMENT AREA SALES TAX

30.3 	Section 1. Minnesota Statutes 2014, section 297A.992, subdivision 1, is amended to 
30.4 	read:
30.5 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
30.6 	the meanings given them:
30.7 	(1) "metropolitan transportation area" means the counties participating in the joint 
30.8 	powers agreement under subdivision 3;
30.9 	(2) "eligible county" means the county of Anoka, Carver, Dakota, Hennepin, 
30.10 	Ramsey, Scott, or Washington; and
30.11 	(3) "committee" means the Grant Evaluation and Ranking System (GEARS) 
30.12 	Committee;
30.13 	(4) "minimum guarantee county" means any metropolitan county or eligible county 
30.14 	that is participating in the joint powers agreement under subdivision 3, whose proportion 
30.15 	of the annual sales tax revenue under this section collected within that county is less 
30.16 	than or equal to three percent; and
30.17 	(5) "population" means the population, as defined in section 477A.011, subdivision 
30.18 	3, estimated or established by July 15 of the year prior to the calendar year in which 
30.19 	the representatives will serve on the Grant Evaluation and Ranking System Committee 
30.20 	established under subdivision 5.

30.21 	Sec. 2. Minnesota Statutes 2014, section 297A.992, subdivision 4, is amended to read:
30.22 		Subd. 4.Joint powers board. (a) The joint powers board must consist of one 
30.23 	or more commissioners of each county that is in the metropolitan transportation area, 
30.24 	appointed by its county board, and the chair of the Metropolitan Council, who must have 
30.25 	voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers 
30.26 	and duties provided in this section and section 471.59.
30.27 	(b) The joint powers board may utilize no more than three-fourths of one percent of 
30.28 	the proceeds of the taxes imposed under this section for ordinary administrative expenses 
30.29 	incurred in carrying out the provisions of this section. Any additional administrative 
30.30 	expenses must be paid by the participating counties.
30.31 	(c) The joint powers board may establish a technical advisory group that is separate 
30.32 	from the GEARS Committee. The group must consist of representatives of cities, counties, 
30.33 	or public agencies, including the Metropolitan Council. The technical advisory group 
30.34 	must be used solely for technical consultation purposes.

31.1 	Sec. 3. Minnesota Statutes 2014, section 297A.992, subdivision 5, is amended to read:
31.2 		Subd. 5.Grant application and awards; Grant Evaluation and Ranking System 
31.3 	(GEARS) Committee. (a) The joint powers board shall establish a grant application 
31.4 	process and identify the amount of available funding for grant awards. Grant applications 
31.5 	must be submitted in a form prescribed by the joint powers board. An applicant must 
31.6 	provide, in addition to all other information required by the joint powers board, the 
31.7 	estimated cost of the project, the amount of the grant sought, possible sources of funding 
31.8 	in addition to the grant sought, and identification of any federal funds that will be utilized 
31.9 	if the grant is awarded. A grant application seeking transit capital funding must identify 
31.10 	the source of money necessary to operate the transit improvement.
31.11 	(b) The joint powers board shall establish a timeline and procedures for the award of 
31.12 	grants, and may award grants only to the state and political subdivisions. The board shall 
31.13 	define objective criteria for the award of grants, which must include, but not be limited to, 
31.14 	consistency with the most recent version of the transportation policy plan adopted by the 
31.15 	Metropolitan Council under section 473.146. The joint powers board shall maximize the 
31.16 	availability and use of federal funds in projects funded under this section.
31.17 	(c) The joint powers board shall establish a GEARS Committee, which must consist 
31.18 	of:
31.19 	(1) one county commissioner from each county that is in the metropolitan 
31.20 	transportation area, appointed by its county board;
31.21 	(2) one elected city representative from each county that is in the metropolitan 
31.22 	transportation area;
31.23 	(3) one additional elected city representative from each county for every additional 
31.24 	400,000 in population, or fraction of 400,000, in the county that is above 400,000 in 
31.25 	population; and
31.26 	(4) the chair of the Metropolitan Council Transportation Committee.
31.27 	(d) Each city representative must be elected at a meeting of cities in the metropolitan 
31.28 	transportation area, which must be convened for that purpose by the Association of 
31.29 	Metropolitan Municipalities.
31.30 	(e) The committee shall evaluate grant applications following objective criteria 
31.31 	established by the joint powers board, and must provide to the joint powers board a 
31.32 	selection list of transportation projects that includes a priority ranking.
31.33 	(f) A grant award for a transit project located within the metropolitan area, as defined 
31.34 	in section 473.121, subdivision 2, may be funded only after the Metropolitan Council 
31.35 	reviews the project for consistency with the transit portion of the Metropolitan Council 
31.36 	policy plan and one of the following occurs:
32.1 	(1) the Metropolitan Council finds the project to be consistent;
32.2 	(2) the Metropolitan Council initially finds the project to be inconsistent, but after a 
32.3 	good faith effort to resolve the inconsistency through negotiations with the joint powers 
32.4 	board, agrees that the grant award may be funded; or
32.5 	(3) the Metropolitan Council finds the project to be inconsistent, and submits the 
32.6 	consistency issue for final determination to a panel, which determines the project to be 
32.7 	consistent. The panel is composed of a member appointed by the chair of the Metropolitan 
32.8 	Council, a member appointed by the joint powers board, and a member agreed upon by 
32.9 	both the chair and the joint powers board.
32.10 	(g) (d) Grants must be funded by the proceeds of the taxes imposed under this 
32.11 	section and under section 297A.9925, bonds, notes, or other obligations issued by the 
32.12 	joint powers board under subdivision 7.
32.13 	(h) Notwithstanding the provisions of this section except subdivision 6a, of 
32.14 	the revenue collected under this section, the joint powers board shall allocate to the 
32.15 	Metropolitan Council, in fiscal years 2012 and 2013, an amount not less than 75 percent of 
32.16 	the net cost of operations for those transitways that were receiving metropolitan sales tax 
32.17 	funds through an operating grant agreement on June 30, 2011.
32.18 	(i) The Metropolitan Council shall expend any funds allocated under paragraph (h) 
32.19 	for the operations of the specified transitways solely within those counties that are in the 
32.20 	metropolitan transportation area.
32.21 	(j) (e) Nothing in paragraph (h) or (i) this section prevents grant awards to 
32.22 	the Metropolitan Council for capital and operating assistance for transitways and 
32.23 	park-and-ride facilities.

32.24 	Sec. 4. Minnesota Statutes 2014, section 297A.992, subdivision 6, is amended to read:
32.25 		Subd. 6.Allocation and use of grant awards. (a) The board must allocate grant 
32.26 	awards only for the following transit purposes:
32.27 	(i) capital improvements to transitways, including, but not limited to, commuter rail 
32.28 	rolling stock, light rail vehicles, and transitway buses;
32.29 	(ii) capital costs for park-and-ride facilities, as defined in section 174.256, 
32.30 	subdivision 2;
32.31 	(iii) feasibility studies, planning, alternatives analyses, environmental studies, 
32.32 	engineering, property acquisition for transitway purposes, and construction of transitways; 
32.33 	and
32.34 	(iv) operating assistance for transitways.
33.1 	(b) The joint powers board must annually award grants to each minimum guarantee 
33.2 	county in an amount no less than the amount of sales tax revenue collected within that 
33.3 	county.
33.4 	(c) The joint powers board must, over the duration of the Metropolitan Council's 
33.5 	2030 plan, establish a goal of awarding grants in an amount totaling no less than 40 
33.6 	percent of sales tax revenue collected for the year for projects in Dakota, Ramsey, or 
33.7 	Washington County.
33.8 	(c) (d) No more than 1.25 percent of the total awards may be annually allocated 
33.9 	for planning, studies, design, construction, maintenance, and operation of pedestrian 
33.10 	programs and bicycle programs and pathways.

33.11 	EFFECTIVE DATE. This section is effective the day following final enactment 
33.12 	and applies to grant awards for calendar year 2016 and after.

33.13 	Sec. 5. [297A.9925] METROPOLITAN TRANSIT IMPROVEMENT AREA 
33.14 	TRANSIT SALES AND USE TAX; RATE; IMPOSITION; USES; PRIORITIES.
33.15 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
33.16 	the following meanings:
33.17 	(1) "metropolitan transit improvement area" or "area" means the counties of Anoka, 
33.18 	Carver, Dakota, Hennepin, Ramsey, Scott, and Washington; 
33.19 	(2) "Metropolitan Council" or "council" means the Metropolitan Council established 
33.20 	by section 473.123; and
33.21 	(3) "local governmental unit" means any county, city, town, school district, special 
33.22 	district, or other political subdivisions or public corporation, other than the council or a 
33.23 	metropolitan agency, lying in whole or in part within the metropolitan transit improvement 
33.24 	area.
33.25 		Subd. 2.Metropolitan transit improvement area transit sales tax imposition; 
33.26 	rate. (a) Notwithstanding section 297A.99, subdivisions 1, 2, and 3, 477A.016, or any 
33.27 	other law, and subject to the approval requirements in paragraph (c) and the alternative 
33.28 	rate provision in paragraph (d), a metropolitan area transit sales and use tax is imposed at a 
33.29 	rate of three-quarters of one percent on retail sales and uses taxable under this chapter 
33.30 	occurring within the metropolitan transit improvement area.
33.31 	(b) The taxes imposed under this subdivision are not included in determining if the 
33.32 	total tax on lodging in the city of Minneapolis exceeds the maximum allowed tax under 
33.33 	Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session 
33.34 	chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, or in 
33.35 	determining a tax that may be imposed under any other limitations.
34.1 	(c) The tax imposed under paragraph (a) is imposed on all counties in the 
34.2 	metropolitan transit improvement area, except that if the governing boards of at least 
34.3 	four counties in the area vote to opt out of the tax before June 15, 2015, the tax is not 
34.4 	imposed in the counties in which the governing board has voted to opt out of the tax. If 
34.5 	the governing boards of fewer than four counties in the area vote to opt out of the tax, then 
34.6 	the tax is imposed on all counties in the area.
34.7 	(d) The rate at which the metropolitan area transit sales and use tax is imposed in 
34.8 	each county will be reduced by the rate of a greater Minnesota transportation sales and 
34.9 	use tax imposed by that county under section 297A.993.
34.10 		Subd. 3.Administration; collection; enforcement. Except as otherwise provided 
34.11 	in this section, the provisions of section 297A.99, subdivisions 4 and 6 to 12a, govern the 
34.12 	administration, collection, and enforcement of the tax authorized under this section.
34.13 		Subd. 4.Distribution of net revenues. After deducting costs of collection and other 
34.14 	costs under section 297A.99, subdivision 11, the commissioner of revenue shall remit:
34.15 	(1) to the Counties Transit Improvement Board, an amount equal to 8.5 percent of 
34.16 	the net proceeds of the tax imposed under subdivision 2; and 
34.17 	(2) to the Metropolitan Council, the remaining proceeds.
34.18 		Subd. 5.General purpose; consistency with transportation policy plan. (a) The 
34.19 	Metropolitan Council shall utilize the proceeds of the tax imposed under subdivision 
34.20 	2 for transit purposes described under subdivision 7, within the metropolitan transit 
34.21 	improvement area.
34.22 	(b) Projects funded with the metropolitan transit improvement area transit sales and 
34.23 	use tax proceeds must not be inconsistent with the long-range transportation policy plan 
34.24 	adopted by the council under section 473.146 and located within the transit improvement 
34.25 	area.
34.26 		Subd. 6.Priorities. The council shall allocate revenues from the taxes imposed 
34.27 	under this section in conformance with the following priority order:
34.28 	(1) payment of debt service necessary for the fiscal year on bonds or other 
34.29 	obligations secured by revenues from the tax imposed in this section;
34.30 	(2) proportional distribution of an amount equal to one-eighth of the total net 
34.31 	proceeds of the taxes imposed under subdivision 2 and under section 297A.992, 
34.32 	subdivision 2, so that the share of each county in the metropolitan transit improvement 
34.33 	area is based on the proportion of taxes generated in that county. Grant awards under 
34.34 	this clause must be used by Hennepin County only for transit purposes, but by all other 
34.35 	counties for any transit purpose or any transportation purpose that has a nexus to transit or 
34.36 	transit-oriented development; and 
35.1 	(3) as otherwise authorized under subdivision 7.
35.2 		Subd. 7.Use of tax proceeds. (a) After deducting the amount necessary under 
35.3 	subdivision 6, clauses (1) and (2), the council shall allocate remaining revenues from the 
35.4 	tax imposed in this section for the following purposes:
35.5 	(1) operating and capital costs to preserve existing bus services that are in 
35.6 	conformance with regional transit performance standards as specified in the council's 
35.7 	transportation policy plan;
35.8 	(2) 100 percent of the net operating costs of arterial bus rapid transit lines in operation 
35.9 	on September 30, 2015, and 50 percent of the net operating costs of other transitways;
35.10 	(3) grants required under paragraph (b);
35.11 	(4) operating and capital costs for transit expansion in accordance with the transit 
35.12 	portion of the council's policy transit plan, including, but not limited to:
35.13 	(i) expansion and upgrades of regular route and commuter bus service provided 
35.14 	by metropolitan transit and replacement services under section 473.388, with overall 
35.15 	expansion of service by an annual average rate of four percent;
35.16 	(ii) development of arterial bus rapid transit, transitways, and streetcar systems; and
35.17 	(iii) maintenance of affordable transit fares;
35.18 	(5) operating and capital costs for expansion and improvement of regional 
35.19 	transitways and streetcars;
35.20 	(6) to transit authorities to establish, replace, or modify transit shelters to conform 
35.21 	with design specifications and maintenance requirements within the meaning of section 
35.22 	473.41; 
35.23 	(7) as grants in the annual amount of $390,000, payable by July 31, to transportation 
35.24 	management organizations that provide services exclusively or primarily in (1) each city 
35.25 	of the first class, as provided under section 410.01; and (2) the city having the highest 
35.26 	population as of the effective date of this section located along the marked Interstate 
35.27 	Highway 494 corridor. Permissible uses include administrative expenses and programming 
35.28 	and service expansion, including but not limited to staffing, communications, outreach and 
35.29 	education program development, and operations management;
35.30 	(8) for financial assistance to replacement service providers under section 473.388 
35.31 	in the amount of $1,500,000 in fiscal year 2016 and $1,500,000 in fiscal year 2017, to 
35.32 	implement a demonstration project that provides regular route transit or express bus 
35.33 	service between municipalities in the metropolitan transportation improvement area, 
35.34 	excluding cities of the first class. The council shall allocate the appropriated funds as 
35.35 	directed by the replacement service providers who shall collectively identify one or more 
35.36 	demonstration projects for financial assistance under this section and submit a notification 
36.1 	of the allocation to the Metropolitan Council. Criteria for evaluating and identifying 
36.2 	demonstration projects must include but are not limited to:
36.3 	(i) scope of service offering improvements;
36.4 	(ii) integration with transit facilities and major business, retail, or suburban centers;
36.5 	(iii) extent to which a proposed route complements existing transit service; and
36.6 	(iv) density of employment along a proposed route;
36.7 	(9) to the Center for Transportation Studies, University of Minnesota, $500,000 
36.8 	annually for research to improve accessibility, operational efficiency, and safety of transit 
36.9 	systems; and
36.10 	(10) any other costs payable in accordance with subdivisions 5, 6, and 7, which 
36.11 	may include, but are not limited to, transit operations, capital improvements, design, 
36.12 	engineering and environmental work, acquisition of real property, transit planning and 
36.13 	feasibility studies, and to provide grants to local governmental units for transit purposes, 
36.14 	including streetcars, or for bicycle and pedestrian projects.
36.15 	(b) The council shall make available an amount equal to ten percent of the revenues 
36.16 	from the tax imposed in this section and in section 297A.992 through grants to local 
36.17 	units of government within the metropolitan transit improvement area for construction 
36.18 	and maintenance of regional bicycle, trail, and pedestrian infrastructure for safe routes to 
36.19 	school infrastructure and for active transportation programs under section 174.38. 

36.20 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
36.21 	September 30, 2015, and applies in the counties of Anoka, Carver, Dakota, Hennepin, 
36.22 	Ramsey, Scott, and Washington, except that subdivision 2, paragraph (c), is effective the 
36.23 	day following final enactment.

36.24 	Sec. 6.  REPEALER.
 36.25 	Minnesota Statutes 2014, section 473.4051, subdivision 2, is repealed.

36.26 	EFFECTIVE DATE. This section is effective July 1, 2015.

36.27 	ARTICLE 6
36.28 	OTHER TAXES, FEES, AND TRANSFERS

36.29 	Section 1. Minnesota Statutes 2014, section 115A.908, is amended to read:
36.30 	115A.908 MOTOR VEHICLE TRANSFER FEE.
36.31 		Subdivision 1.Fee charged. (a) A fee of $10 shall be charged on the initial 
36.32 	registration and each subsequent transfer of title within the state, other than transfers for 
37.1 	resale purposes, of every motor vehicle weighing more than 1,000 pounds. The fee shall 
37.2 	be collected by the commissioner of public safety. Registration plates or certificates 
37.3 	of title may not be issued by the commissioner of public safety for the ownership or 
37.4 	operation of a motor vehicle subject to the transfer fee unless the fee is paid. The fee may 
37.5 	not be charged on the transfer of:
37.6 	(1) previously registered vehicles if the transfer is to the same person;
37.7 	(2) vehicles subject to the conditions specified in section 297A.70, subdivision 2; or
37.8 	(3) vehicles purchased in another state by a resident of another state if more than 60 
37.9 	days have elapsed after the date of purchase and the purchaser is transferring title to this 
37.10 	state and has become a resident of this state after the purchase.
37.11 	(b) A surcharge of $10 is imposed on each fee charged under paragraph (a).
37.12 		Subd. 2.Deposit of revenue. (a) Fee revenue collected under this section shall be 
37.13 	credited to the environmental fund.
37.14 	(b) The commissioner of transportation shall deposit the proceeds of the surcharge 
37.15 	as follows:
37.16 	(1) 50 percent in the small city streets and bridges account under section 174.54, 
37.17 	subdivision 1; and
37.18 	(2) 50 percent in the larger city streets and bridges account under section 174.54, 
37.19 	subdivision 2.

37.20 	Sec. 2. Minnesota Statutes 2014, section 161.081, subdivision 1, is amended to read:
37.21 		Subdivision 1.Distribution of five percent. (a) Pursuant to article 14, section 5, of 
37.22 	the Constitution, five percent of the net highway user tax distribution fund is set aside, and 
37.23 	apportioned to the county state-aid highway fund.
37.24 	(b) That apportionment is further distributed as follows:
37.25 	(1) 30.5 percent to the town road account created in section 162.081;
37.26 	(2) 16 percent to the town bridge account, which is created in the state treasury 56.5 
37.27 	percent to the county state-aid highway fund, consisting of: (i) 30.5 percent to the town 
37.28 	road account created in section 162.081; (ii) 16 percent to the town bridge account created 
37.29 	in the state treasury; and (iii) ten percent to the county municipal accounts for purposes 
37.30 	described in section 162.08; and
37.31 	(3) 53.5 percent to the flexible highway account created in subdivision 3 (2) 43.5 
37.32 	percent to the municipal state-aid street fund.

37.33 	EFFECTIVE DATE. This section is effective July 1, 2015.

37.34 	Sec. 3. Minnesota Statutes 2014, section 161.082, subdivision 1, is amended to read:
38.1 		Subdivision 1.Creation of account; rules. (a) The county turnback account is 
38.2 	created in the state treasury, consisting of money allotted or appropriated to the account 
38.3 	from the trunk highway fund or from any other source that will be used for the restoration 
38.4 	of trunk highways that have reverted or that will revert to counties.
38.5 	(b) Except as provided in this section and in section 161.081, all money accruing 
38.6 	to the county turnback account shall be expended in accordance with rules of the 
38.7 	commissioner of transportation in paying a county for the restoration of former trunk 
38.8 	highways, or portions thereof, that have reverted to the county in accordance with law, and 
38.9 	have become a part of the county state-aid highway system.
38.10 	(c) The legislature finds that restoration of trunk highways that have reverted or 
38.11 	will revert to counties is a trunk highway purpose within the meaning of the Minnesota 
38.12 	Constitution, article XIV, section 2.

38.13 	Sec. 4. Minnesota Statutes 2014, section 161.082, is amended by adding a subdivision 
38.14 	to read:
38.15 		Subd. 1a.Budget submission. As part of each biennial budget submission to the 
38.16 	legislature, the commissioner shall include a request for an appropriation to the county 
38.17 	turnback account.

38.18 	Sec. 5. Minnesota Statutes 2014, section 161.083, is amended to read:
38.19 	161.083 MUNICIPAL TURNBACK ACCOUNT, EXPENDITURE.
38.20 		Subdivision 1.Creation of account. (a) The municipal turnback account is created 
38.21 	in the state treasury, consisting of money allotted or appropriated to the account from the 
38.22 	trunk highway fund or from any other source that will be used for the restoration of trunk 
38.23 	highways that have reverted or that will revert to cities. 
38.24 	(b) Except as hereinafter provided in this section, all money accruing to the 
38.25 	municipal turnback account shall be expended in accordance with rules of the 
38.26 	commissioner of transportation in paying a municipality having a population of 5,000 or 
38.27 	more for the reconstruction and improvement of former trunk highways, or portions 
38.28 	thereof, that have reverted to such municipality in accordance with law, and have become 
38.29 	a part of the municipal state-aid street system.
38.30 	(c) The legislature finds that restoration of trunk highways that have reverted or 
38.31 	will revert to cities is a trunk highway purpose within the meaning of the Minnesota 
38.32 	Constitution, article XIV, section 2.
39.1 		Subd. 2.Biennial budget submission. As part of each biennial budget submission 
39.2 	to the legislature, the commissioner shall include a request for an appropriation to the 
39.3 	municipal turnback account.

39.4 	Sec. 6. Minnesota Statutes 2014, section 162.07, subdivision 1a, is amended to read:
39.5 		Subd. 1a.Apportionment sum and excess sum. (a) For purposes of this 
39.6 	subdivision, "distribution amount" means the amount identified in section 162.06, 
39.7 	subdivision 1, after the deductions provided for in section 162.06 for administrative costs, 
39.8 	disaster account, research account, and state park road account.
39.9 	(b) The apportionment sum is calculated by subtracting the excess sum, as calculated 
39.10 	in paragraph (c), from as 68 percent of the distribution amount.
39.11 	(c) The excess sum is calculated as the sum of revenue within 32 percent of the 
39.12 	distribution amount:.
39.13 	(1) attributed to that portion of the gasoline excise tax rate under section 296A.07, 
39.14 	subdivision 3, in excess of 20 cents per gallon, and to that portion of the excise tax rates 
39.15 	in excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon 
39.16 	for E85 and M85 under section 296A.07, subdivision 3, and special fuel under section 
39.17 	296A.08, subdivision 2;
39.18 	(2) attributed to a change in the passenger vehicle registration tax under section 
39.19 	168.013, imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal 
39.20 	year 2008, multiplied by (ii) the annual average United States Consumer Price Index for 
39.21 	the calendar year previous to the current calendar year, divided by the annual average 
39.22 	United States Consumer Price Index for calendar year 2007; and
39.23 	(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the 
39.24 	percentage allocated to the county state-aid highway fund in fiscal year 2007.
39.25 	(d) For purposes of this subdivision, the United States Consumer Price Index 
39.26 	identified in paragraph (c) is for all urban consumers, United States city average, as 
39.27 	determined by the United States Department of Labor.

39.28 	EFFECTIVE DATE. This section is effective October 1, 2015.

39.29 	Sec. 7. Minnesota Statutes 2014, section 168.012, subdivision 1c, is amended to read:
39.30 		Subd. 1c.Payment of administrative, plate, and filing fee. The annual 
39.31 	administrative fee for a tax-exempt vehicle under this section is $5. The license plate 
39.32 	fee for a tax-exempt vehicle, except a trailer, is $10$12.50 for two plates per vehicle, 
39.33 	payable only on the first tax-exempt registration of the vehicle. The registration period for 
40.1 	a tax-exempt vehicle is biennial. The administrative fee is due on March 1 biennially and 
40.2 	payable the preceding January 1, with validating stickers issued at time of payment.

40.3 	Sec. 8. Minnesota Statutes 2014, section 168.013, subdivision 1d, is amended to read:
40.4 		Subd. 1d.Trailer. (a) On trailers registered at a gross vehicle weight of greater 
40.5 	than 3,000 pounds, the annual tax is based on total gross weight and is 30 percent of the 
40.6 	Minnesota base rate prescribed in subdivision 1e, when the gross weight is 15,000 pounds 
40.7 	or less, and when the gross weight of a trailer is more than 15,000 pounds, the tax for the 
40.8 	first eight years of vehicle life is 100 percent of the tax imposed in the Minnesota base rate 
40.9 	schedule, and during the ninth and succeeding years of vehicle life the tax is 75 percent of 
40.10 	the Minnesota base rate prescribed by subdivision 1e. A trailer registered at a gross vehicle 
40.11 	weight greater than 3,000 pounds but no greater than 7,200 pounds may be taxed either: (1) 
40.12 	annually as provided in this paragraph, or (2) once every three years on the basis of total 
40.13 	gross weight and is 90 percent of the Minnesota base rate prescribed in subdivision 1e.
40.14 	(b) Farm trailers with a gross weight in excess of 10,000 pounds and as described in 
40.15 	section 168.002, subdivision 8, are taxed as farm trucks as prescribed in subdivision 1c.
40.16 	(c) Effective on and after July 1, 2001, trailers registered at a gross vehicle weight 
40.17 	of 3,000 pounds or less must display a distinctive plate. The registration on the license 
40.18 	plate is valid for the life of the trailer only if it remains registered at the same gross vehicle 
40.19 	weight. The onetime registration tax for trailers registered for the first time in Minnesota 
40.20 	is $55. For trailers registered in Minnesota before July 1, 2001, and for which:
40.21 	(1) registration is desired for the remaining life of the trailer, the registration tax 
40.22 	is $25; or
40.23 	(2) permanent registration is not desired, the biennial registration tax is $10 for the 
40.24 	first renewal if registration is renewed between and including July 1, 2001, and June 30, 
40.25 	2003. These trailers must be issued permanent registration at the first renewal on or after 
40.26 	July 1, 2003, and the registration tax is $20.
40.27 	For trailers registered at a gross weight of 3,000 pounds or less before July 1, 2001, 
40.28 	but not renewed until on or after July 1, 2003, the registration tax is $20 and permanent 
40.29 	registration must be issued.

40.30 	EFFECTIVE DATE. This section is effective the day following final enactment 
40.31 	and applies to taxes payable for a registration period starting on or after January 1, 2016.

40.32 	Sec. 9. Minnesota Statutes 2014, section 168.12, subdivision 2, is amended to read:
40.33 		Subd. 2.Amateur radio licensee; special plates, rules. (a) The commissioner shall 
40.34 	issue amateur radio plates to an applicant who:
41.1 	(1) is an owner of a passenger automobile or recreational vehicle;
41.2 	(2) is a resident of this state;
41.3 	(3) holds an official amateur radio station license or a citizens radio service class D 
41.4 	license, in good standing, issued by the Federal Communications Commission;
41.5 	(4) pays the registration tax required under section 168.013;
41.6 	(5) pays a fee of $10$12.50 for each set of special plates and any other fees required 
41.7 	by this chapter; and
41.8 	(6) complies with this chapter and rules governing the registration of motor vehicles 
41.9 	and licensing of drivers;
41.10 	(b) In lieu of the registration number required for identification under subdivision 1, 
41.11 	the plates must indicate the official amateur call letters of the applicant, as assigned by the 
41.12 	Federal Communications Commission, and the words "AMATEUR RADIO."
41.13 	(c) This provision for the issue of special plates applies only if the applicant's motor 
41.14 	vehicle is already registered in Minnesota so that the applicant has valid regular Minnesota 
41.15 	plates issued for that motor vehicle under which to operate it during the time that it will 
41.16 	take to have the necessary special plates made.
41.17 	(d) If owning more than one motor vehicle of the type specified in this subdivision, 
41.18 	the applicant may apply for special plates for each motor vehicle and, if each application 
41.19 	complies with this subdivision, the commissioner shall furnish the applicant with 
41.20 	the special plates, indicating the official amateur call letters and other distinguishing 
41.21 	information as the commissioner considers necessary, for each of the motor vehicles.
41.22 	(e) The commissioner may make reasonable rules governing the use of the special 
41.23 	plates as will assure the full compliance by the owner of the special plates, with all existing 
41.24 	laws governing the registration of motor vehicles and the transfer and use of the plates.
41.25 	(f) Despite any contrary provision of subdivision 1, the special plates issued under this 
41.26 	subdivision may be transferred by an owner to another motor vehicle listed in paragraph 
41.27 	(a) and registered to the same owner, upon the payment of a fee of $5. The commissioner 
41.28 	must be notified before the transfer and may prescribe a format for the notification.

41.29 	Sec. 10. Minnesota Statutes 2014, section 168.12, subdivision 2b, is amended to read:
41.30 		Subd. 2b.Firefighters; special plates, rules. (a) The commissioner shall issue 
41.31 	special plates, or a single license plate in the case of a motorcycle plate, to any applicant 
41.32 	who:
41.33 	(1) is a member of a fire department receiving state aid under chapter 69, has a 
41.34 	letter from the fire chief, and is an owner of a passenger automobile, a one-ton pickup 
41.35 	truck, or a motorcycle;
42.1 	(2) pays a fee of $10 $12.50 and any other fees required by this chapter;
42.2 	(3) pays the registration tax required by this chapter for the motor vehicle; and
42.3 	(4) complies with this chapter and rules governing the registration of motor vehicles 
42.4 	and licensing of drivers.
42.5 	(b) In lieu of the identification required under subdivision 1, the special plates must 
42.6 	bear an emblem of a Maltese Cross together with any numbers or characters prescribed by 
42.7 	the commissioner.
42.8 	(c) Special plates issued under this subdivision may only be used during the period 
42.9 	that the owner of the motor vehicle is a member of a fire department as specified in this 
42.10 	subdivision. When the individual to whom the special plates were issued is no longer a 
42.11 	member of a fire department or when the motor vehicle ownership is transferred, the 
42.12 	owner shall remove the special plates from the motor vehicle. If the commissioner 
42.13 	receives written notification that an individual is no longer qualified for these special 
42.14 	plates, the commissioner shall invalidate the plates and notify the individual of this 
42.15 	action. The individual may retain the plate only upon demonstrating compliance with the 
42.16 	qualifications of this subdivision. Upon removal or invalidation of the special plates or 
42.17 	special motorcycle plate, the owner or purchaser of the motor vehicle shall obtain regular 
42.18 	plates, a regular motorcycle plate, or special plates for the proper registration classification 
42.19 	for the motor vehicle.
42.20 	(d) A special motorcycle license plate issued under this subdivision must be the 
42.21 	same size as a standard motorcycle license plate.
42.22 	(e) Upon payment of a fee of $5, plates issued under this subdivision for a passenger 
42.23 	automobile or truck may be transferred to another passenger automobile or truck owned 
42.24 	or jointly owned by the person to whom the plates were issued. On payment of a fee of 
42.25 	$5, a plate issued under this subdivision for a motorcycle may be transferred to another 
42.26 	motorcycle owned or jointly owned by the person to whom the plate was issued.
42.27 	(f) The commissioner may adopt rules under the Administrative Procedure Act, 
42.28 	sections 14.001 to 14.69, to govern the issuance and use of the special plates authorized 
42.29 	in this subdivision.

42.30 	Sec. 11. Minnesota Statutes 2014, section 168.12, subdivision 2c, is amended to read:
42.31 		Subd. 2c.National Guard; special plates, rules. (a) The commissioner shall 
42.32 	issue special plates to any applicant who:
42.33 	(1) is a regularly enlisted, commissioned, or retired member of the Minnesota 
42.34 	National Guard, other than an inactive member who is not a retired member, and is an 
42.35 	owner of a passenger automobile;
43.1 	(2) pays a fee of $10$12.50 and any other fees required by this chapter;
43.2 	(3) pays the registration tax required by this chapter; and
43.3 	(4) complies with this chapter and rules governing the registration of motor vehicles 
43.4 	and licensing of drivers.
43.5 	(b) The adjutant general shall design the emblem for these special plates subject to 
43.6 	the approval of the commissioner.
43.7 	(c) Special plates issued under this subdivision may only be used during the period 
43.8 	that the owner of the motor vehicle is an active or retired member of the Minnesota National 
43.9 	Guard as specified in this subdivision. When the individual to whom the special plates 
43.10 	were issued is no longer an active or retired member of the Minnesota National Guard, 
43.11 	the special plates must be removed from the vehicle by the owner. If the commissioner 
43.12 	receives written notification that an individual is no longer qualified for these special plates, 
43.13 	the commissioner shall invalidate the plates and notify the individual of this action. The 
43.14 	individual may retain the plate only upon demonstrating compliance with the qualifications 
43.15 	of this subdivision. Upon removal or invalidation of the special plates, either the owner or 
43.16 	purchaser of the motor vehicle shall obtain regular plates for the motor vehicle.
43.17 	(d) While the person is an active or retired member of the Minnesota National 
43.18 	Guard, plates issued pursuant to this subdivision may be transferred to another motor 
43.19 	vehicle owned by that individual upon payment of a fee of $5.
43.20 	(e) For purposes of this subdivision, "retired member" means an individual placed on 
43.21 	the roll of retired officers or roll of retired enlisted members in the Office of the Adjutant 
43.22 	General under section 192.18 and who is not deceased.
43.23 	(f) The commissioner may adopt rules under the Administrative Procedure Act to 
43.24 	govern the issuance and use of the special plates authorized by this subdivision.

43.25 	Sec. 12. Minnesota Statutes 2014, section 168.12, subdivision 2d, is amended to read:
43.26 		Subd. 2d.Ready Reserve; special plates, rules. (a) The commissioner shall issue 
43.27 	special plates to an applicant who:
43.28 	(1) is not eligible for special National Guard plates under subdivision 2c, is a 
43.29 	member of the United States armed forces ready reserve as described in United States 
43.30 	Code, title 10, section 10142 or 10143, or a retired reserve as described in United States 
43.31 	Code, title 10, section 10154, and is an owner of a passenger automobile;
43.32 	(2) pays a fee of $10$12.50 and any other fees required by this chapter;
43.33 	(3) pays the registration tax required by this chapter; and
43.34 	(4) complies with this chapter and rules governing the registration of motor vehicles 
43.35 	and licensing of drivers.
44.1 	(b) The commissioner of veterans affairs shall design the emblem for these special 
44.2 	plates subject to the approval of the commissioner.
44.3 	(c) Special plates issued under this subdivision may only be used during the period 
44.4 	that the owner of the motor vehicle is a member of the ready reserve. When the owner is 
44.5 	no longer a member, the special plates must be removed from the motor vehicle by the 
44.6 	owner. If the commissioner receives written notification that an individual is no longer 
44.7 	qualified for these special plates, the commissioner shall invalidate the plates and notify 
44.8 	the individual of this action. The individual may retain the plate only upon demonstrating 
44.9 	compliance with the qualifications of this subdivision. On removal or invalidation of the 
44.10 	special plates, either the owner or purchaser of the motor vehicle shall obtain regular 
44.11 	plates for the motor vehicle. While the owner is a member of the ready reserve, plates 
44.12 	issued under this subdivision may be transferred to another motor vehicle owned by that 
44.13 	individual on paying a fee of $5.
44.14 	(d) The commissioner may adopt rules under the Administrative Procedure Act to 
44.15 	govern the issuance and use of the special plates authorized by this subdivision.

44.16 	Sec. 13. Minnesota Statutes 2014, section 168.12, subdivision 2e, is amended to read:
44.17 		Subd. 2e.Volunteer ambulance attendants; special plates. (a) The commissioner 
44.18 	shall issue special license plates to an applicant who:
44.19 	(1) is a volunteer ambulance attendant as defined in section 144E.001, subdivision 
44.20 	15, and owns a motor vehicle taxed as a passenger automobile;
44.21 	(2) pays the registration tax required by this chapter for the motor vehicle;
44.22 	(3) pays a fee of $10$12.50 and any other fees required by this chapter; and
44.23 	(4) complies with this chapter and rules governing the registration of motor vehicles 
44.24 	and licensing of drivers.
44.25 	(b) An individual may use special plates issued under this subdivision only during 
44.26 	the period that the individual is a volunteer ambulance attendant. When the individual to 
44.27 	whom the special plates were issued ceases to be a volunteer ambulance attendant, the 
44.28 	individual shall remove each set of special plates issued. If the commissioner receives 
44.29 	written notification that an individual is no longer qualified for these special plates, the 
44.30 	commissioner shall invalidate the plates and notify the individual of this action. The 
44.31 	individual may retain the plate only upon demonstrating compliance with the qualifications 
44.32 	of this subdivision. When ownership of the motor vehicle is transferred, the individual 
44.33 	shall remove the special plates from that motor vehicle. On removal or invalidation of the 
44.34 	special plates, the owner or purchaser of the motor vehicle shall obtain regular plates for the 
45.1 	motor vehicle. Special plates issued under this subdivision may be transferred to another 
45.2 	motor vehicle owned by the volunteer ambulance attendant on payment of a fee of $5.
45.3 	(c) The commissioner may adopt rules governing the design, issuance, and sale of 
45.4 	the special plates authorized by this subdivision.

45.5 	Sec. 14. Minnesota Statutes 2014, section 168.12, subdivision 2g, is amended to read:
45.6 		Subd. 2g.Retired firefighters; special plates. (a) The commissioner shall issue 
45.7 	special retired firefighters plates to an applicant who:
45.8 	(1) is a retired member of a fire department as defined in section 299N.01, subdivision 
45.9 	2, has a letter from the fire chief affirming that the applicant is a retired firefighter who 
45.10 	served ten or more years and separated in good standing, and is a registered owner of a 
45.11 	passenger automobile, a one-ton pickup truck, a recreational vehicle, or a motorcycle;
45.12 	(2) pays a fee of $10$12.50 for each set of license plates applied for along with 
45.13 	any other fees required by this chapter; and
45.14 	(3) complies with this chapter and rules governing registration of motor vehicles 
45.15 	and licensing of drivers.
45.16 	(b) The commissioner shall design the special plate emblem so that it is 
45.17 	distinguishable from the emblem on firefighter special plates issued under subdivision 2b.
45.18 	(c) On payment of a transfer fee of $5, plates issued under this subdivision may be 
45.19 	transferred to another passenger automobile, one-ton pickup truck, recreational vehicle, or 
45.20 	motorcycle registered to the individual to whom the special plates were issued.
45.21 	(d) Fees collected under this subdivision must be credited to the vehicle services 
45.22 	operating account in the special revenue fund.
45.23 	(e) This subdivision is exempt from section 168.1293.

45.24 	Sec. 15. Minnesota Statutes 2014, section 168.12, subdivision 5, is amended to read:
45.25 		Subd. 5.Additional fee. (a) In addition to any fee otherwise authorized or any tax 
45.26 	otherwise imposed upon any vehicle, the payment of which is required as a condition to 
45.27 	the issuance of any plate or plates, the commissioner shall impose the fee specified in 
45.28 	paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate 
45.29 	or plates, except for plates issued to disabled veterans as defined in section 168.031 and 
45.30 	plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17, 
45.31 	for passenger automobiles. The commissioner shall issue graphic design plates only 
45.32 	for vehicles registered pursuant to section 168.017 and recreational vehicles registered 
45.33 	pursuant to section 168.013, subdivision 1g.
46.1 	(b) Unless otherwise specified or exempted by statute, the following plate and 
46.2 	validation sticker fees apply for the original, duplicate, or replacement issuance of a 
46.3 	plate in a plate year:

46.4	License Plate
			Single
		Double
	
46.5		Regular and Disability
		$
	4.50 6.25
	$
	6.00 12.50
	
46.6
46.7		Special
		$
	8.50
	$
	10.00 
12.50
	
46.8		Personalized (Replacement)
		$
	10.00
	$
	14.00
	
46.9		Collector Category
		$
	13.50
	$
	15.00
	
46.10		Emergency Vehicle Display
		$
	3.00 6.25
	$
	6.00 12.50
	
46.11		Utility Trailer Self-Adhesive
		$
	2.50
			
46.12		Vertical Motorcycle Plate
		$
	100.00
		NA
	
46.13	Stickers
						
46.14		Duplicate year
		$
	1.00
	$
	1.00
	
46.15		International Fuel Tax Agreement
		$
	2.50
			
46.16 	(c) For vehicles that require two of the categories above, the registrar shall only 
46.17 	charge the higher of the two fees and not a combined total.

46.18 	Sec. 16. Minnesota Statutes 2014, section 168.121, subdivision 1, is amended to read:
46.19 		Subdivision 1.Issuance and design. Notwithstanding section 168.1293, the 
46.20 	commissioner shall issue special plates remembering victims of impaired drivers to an 
46.21 	applicant who:
46.22 	(1) is a registered owner of a passenger automobile;
46.23 	(2) pays a fee of $10$12.50 for each set of license plates applied for; and
46.24 	(3) complies with this chapter and rules governing registration of motor vehicles 
46.25 	and licensing of drivers.

46.26 	Sec. 17. Minnesota Statutes 2014, section 168.123, subdivision 1, is amended to read:
46.27 		Subdivision 1.General requirements; fees. (a) On payment of a fee of $10$12.50 
46.28 	for each set of two plates, or for a single plate in the case of a motorcycle plate, payment 
46.29 	of the registration tax required by law, and compliance with other applicable laws relating 
46.30 	to vehicle registration and licensing, as applicable, the commissioner shall issue:
46.31 	(1) special veteran's plates to an applicant who served in the active military service 
46.32 	in a branch of the armed forces of the United States or of a nation or society allied with the 
46.33 	United States in conducting a foreign war, was discharged under honorable conditions, 
46.34 	and is a registered owner of a passenger automobile, recreational motor vehicle, or 
46.35 	one-ton pickup truck, but which is not a commercial motor vehicle as defined in section 
46.36 	169.011, subdivision 16; or
47.1 	(2) a veteran's special motorcycle plate as described in subdivision 2, paragraph (a), 
47.2 	(e), (f), (h), (i), (j), or (m), or another special plate designed by the commissioner to an 
47.3 	applicant who is a registered owner of a motorcycle and meets the criteria listed in this 
47.4 	paragraph and in subdivision 2, paragraph (a), (e), (f), (h), (i), (j), or (m). Plates issued 
47.5 	under this clause must be the same size as regular motorcycle plates. Special motorcycle 
47.6 	license plates issued under this clause are not subject to section 168.1293.
47.7 	(b) The additional fee of $10$12.50 is payable for each set of veteran's plates, is 
47.8 	payable only when the plates are issued, and is not payable in a year in which stickers are 
47.9 	issued instead of plates.
47.10 	(c) The veteran must have a certified copy of the veteran's discharge papers, 
47.11 	indicating character of discharge, at the time of application. If an applicant served in the 
47.12 	active military service in a branch of the armed forces of a nation or society allied with the 
47.13 	United States in conducting a foreign war and is unable to obtain a record of that service 
47.14 	and discharge status, the commissioner of veterans affairs may certify the applicant as 
47.15 	qualified for the veterans' plates provided under this section.

47.16 	Sec. 18. Minnesota Statutes 2014, section 168.1235, subdivision 1, is amended to read:
47.17 		Subdivision 1.General requirements; fees. (a) The commissioner shall issue a 
47.18 	special plate emblem for each plate to an applicant who:
47.19 	(1) is a member of a congressionally chartered veterans service organization and 
47.20 	is a registered owner of a passenger automobile, pickup truck, van, or self-propelled 
47.21 	recreational vehicle;
47.22 	(2) pays the registration tax required by law;
47.23 	(3) pays a fee of $10$12.50 for each set of two plates, and any other fees required 
47.24 	by this chapter; and
47.25 	(4) complies with this chapter and rules governing the registration of motor vehicles 
47.26 	and licensing of drivers.
47.27 	(b) The additional fee of $10$12.50 is payable at the time of initial application for 
47.28 	the special plate emblem and when the plates must be replaced or renewed. An applicant 
47.29 	must not be issued more than two sets of special plate emblems for motor vehicles listed 
47.30 	in paragraph (a) and registered to the applicant.
47.31 	(c) The applicant must present a valid card indicating membership in the American 
47.32 	Legion or Veterans of Foreign Wars.

47.33 	Sec. 19. Minnesota Statutes 2014, section 168.1255, subdivision 1, is amended to read:
48.1 		Subdivision 1.General requirements and procedures. The commissioner shall 
48.2 	issue special veteran contribution plates or a single motorcycle plate to an applicant who:
48.3 	(1) is a veteran, as defined in section 197.447;
48.4 	(2) is a registered owner of a passenger automobile as defined in section 168.002, 
48.5 	subdivision 24, recreational vehicle as defined in section 168.002, subdivision 27, one-ton 
48.6 	pickup truck as defined in section 168.002, subdivision 21b, or motorcycle as defined in 
48.7 	section 168.002, subdivision 19;
48.8 	(3) pays a fee of $10$12.50 to cover the costs of handling and manufacturing the 
48.9 	plates;
48.10 	(4) pays the registration tax required under section 168.013;
48.11 	(5) pays the fees required under this chapter;
48.12 	(6) pays an additional onetime World War II memorial contribution of $30, which 
48.13 	the department shall retain until all start-up costs associated with the development and 
48.14 	issuing of the plates have been recovered, after which the commissioner shall deposit 
48.15 	contributions in the World War II donation match account; and
48.16 	(7) complies with this chapter and rules governing the registration of motor vehicles 
48.17 	and licensing of drivers.

48.18 	Sec. 20. Minnesota Statutes 2014, section 168.128, subdivision 2, is amended to read:
48.19 		Subd. 2.Plates. (a) A person who operates a limousine for other than personal use 
48.20 	shall register the motor vehicle as provided in this section. A person who operates a 
48.21 	limousine for personal use may apply for limousine plates.
48.22 	(b) The commissioner shall issue limousine plates to the registered owner of a 
48.23 	limousine who:
48.24 	(1) certifies that an insurance policy or policies under section 65B.135, in the 
48.25 	minimum aggregate amount required under that section, is in effect for the entire period 
48.26 	of the registration;
48.27 	(2) provides the commissioner with proof that the passenger automobile registration 
48.28 	tax and a $10$12.50 fee have been paid for each limousine receiving limousine plates; and
48.29 	(3) complies with this chapter and rules governing the registration of motor vehicles 
48.30 	and licensing of drivers.
48.31 	(c) The limousine plates must be designed to specifically identify the vehicle as a 
48.32 	limousine and must be clearly marked with the letters "LM." Limousine plates may not be 
48.33 	transferred upon sale of the limousine, but may be transferred to another limousine owned 
48.34 	by the same person upon notifying the commissioner and paying a $5 transfer fee.

49.1 	Sec. 21. Minnesota Statutes 2014, section 168.1291, subdivision 4, is amended to read:
49.2 		Subd. 4.Fees. Despite section 168.12, subdivisions 2b to 2e; 168.123; or 168.129, 
49.3 	the commissioner shall charge a fee of $10$12.50 for each set of plates issued under 
49.4 	this section.

49.5 	Sec. 22. Minnesota Statutes 2014, section 168.1295, subdivision 1, is amended to read:
49.6 		Subdivision 1.General requirements and procedures. (a) The commissioner shall 
49.7 	issue state parks and trails plates to an applicant who:
49.8 	(1) is a registered owner of a passenger automobile, recreational vehicle, one ton 
49.9 	pickup truck, or motorcycle;
49.10 	(2) pays a fee of $10$12.50 to cover the costs of handling and manufacturing the 
49.11 	plates;
49.12 	(3) pays the registration tax required under section 168.013;
49.13 	(4) pays the fees required under this chapter;
49.14 	(5) contributes a minimum of $50 annually to the state parks and trails donation 
49.15 	account established in section 85.056; and
49.16 	(6) complies with this chapter and rules governing registration of motor vehicles 
49.17 	and licensing of drivers.
49.18 	(b) The state parks and trails plate application must indicate that the contribution 
49.19 	specified under paragraph (a), clause (5), is a minimum contribution to receive the plate 
49.20 	and that the applicant may make an additional contribution to the account.
49.21 	(c) State parks and trails plates may be personalized according to section 168.12, 
49.22 	subdivision 2a.

49.23 	Sec. 23. Minnesota Statutes 2014, section 168.1296, subdivision 1, is amended to read:
49.24 		Subdivision 1.General requirements and procedures. (a) The commissioner shall 
49.25 	issue critical habitat plates to an applicant who:
49.26 	(1) is a registered owner of a passenger automobile or recreational vehicle;
49.27 	(2) pays a fee of $10$12.50 to cover the costs of handling and manufacturing the 
49.28 	plates;
49.29 	(3) pays the registration tax required under section 168.013;
49.30 	(4) pays the fees required under this chapter;
49.31 	(5) contributes a minimum of $30 annually to the Minnesota critical habitat private 
49.32 	sector matching account established in section 84.943; and
49.33 	(6) complies with this chapter and rules governing registration of motor vehicles 
49.34 	and licensing of drivers.
50.1 	(b) The critical habitat plate application must indicate that the annual contribution 
50.2 	specified under paragraph (a), clause (5), is a minimum contribution to receive the plate 
50.3 	and that the applicant may make an additional contribution to the account.
50.4 	(c) Owners of recreational vehicles under paragraph (a), clause (1), are eligible 
50.5 	only for special critical habitat license plates for which the designs are selected under 
50.6 	subdivision 2, on or after January 1, 2006.
50.7 	(d) Special critical habitat license plates, the designs for which are selected under 
50.8 	subdivision 2, on or after January 1, 2006, may be personalized according to section 
50.9 	168.12, subdivision 2a.

50.10 	Sec. 24. Minnesota Statutes 2014, section 168.1297, subdivision 1, is amended to read:
50.11 		Subdivision 1.General requirements and procedures. The commissioner shall 
50.12 	issue special "Rotary member" plates to an applicant who:
50.13 	(1) is a registered owner of a passenger automobile;
50.14 	(2) pays a fee of $10$12.50 to cover the costs of handling and manufacturing the 
50.15 	plates;
50.16 	(3) pays the registration tax required under section 168.013;
50.17 	(4) pays the fees required under this chapter;
50.18 	(5) submits proof to the commissioner that the applicant is a member of Rotary 
50.19 	International; and
50.20 	(6) complies with this chapter and rules governing registration of motor vehicles 
50.21 	and licensing of drivers.

50.22 	Sec. 25. Minnesota Statutes 2014, section 168.1298, subdivision 1, is amended to read:
50.23 		Subdivision 1.General requirements and procedures. (a) The commissioner shall 
50.24 	issue special "Support Our Troops" license plates to an applicant who:
50.25 	(1) is an owner of a passenger automobile, one-ton pickup truck, recreational 
50.26 	vehicle, or motorcycle;
50.27 	(2) pays a fee of $10$12.50 to cover the costs of handling and manufacturing the 
50.28 	plates;
50.29 	(3) pays the registration tax required under section 168.013;
50.30 	(4) pays the fees required under this chapter;
50.31 	(5) contributes a minimum of $30 annually to the Minnesota "Support Our Troops" 
50.32 	account established in section 190.19; and
50.33 	(6) complies with laws and rules governing registration and licensing of vehicles 
50.34 	and drivers.
51.1 	(b) The license application under this section must indicate that the annual 
51.2 	contribution specified under paragraph (a), clause (5), is a minimum contribution to receive 
51.3 	the plates and that the applicant may make an additional contribution to the account.

51.4 	Sec. 26. Minnesota Statutes 2014, section 168.1299, subdivision 1, is amended to read:
51.5 		Subdivision 1.Issuance. Notwithstanding section 168.1293, the commissioner shall 
51.6 	issue special Minnesota golf plates or a single motorcycle plate to an applicant who:
51.7 	(1) is a registered owner of a passenger automobile, one-ton pickup truck, 
51.8 	motorcycle, or recreational vehicle;
51.9 	(2) pays a fee of $10$12.50 and any other fees required by this chapter;
51.10 	(3) contributes a minimum of $30 annually after January 1, 2017, to the Minnesota 
51.11 	Section PGA Foundation account; and
51.12 	(4) complies with this chapter and rules governing registration of motor vehicles 
51.13 	and licensing of drivers.

51.14 	EFFECTIVE DATE. This section is effective July 1, 2015, and applies to license 
51.15 	plates issued on and after that date.

51.16 	Sec. 27. Minnesota Statutes 2014, section 168.27, subdivision 22, is amended to read:
51.17 		Subd. 22.Dealer license for trailers, motorized bicycles; plates, fees; 
51.18 	exemptions. Any person, copartnership, or corporation having a permanent enclosed 
51.19 	commercial building or structure either owned in fee or leased and engaged in the 
51.20 	business, either exclusively or in addition to any other occupation, of selling motorized 
51.21 	bicycles, boat trailers, horse trailers, or snowmobile trailers, may apply to the registrar 
51.22 	for a dealer's license. Upon payment of a $10 fee the registrar shall license the applicant 
51.23 	as a dealer for the remainder of the calendar year in which the application was received. 
51.24 	The license may be renewed on or before the second day of January of each succeeding 
51.25 	year by payment of a fee of $10. The registrar shall issue to each dealer, upon request 
51.26 	of the dealer, dealer plates as provided in subdivision 16 upon payment of $5$6.25 for 
51.27 	each plate, and the plates may be used in the same manner and for the same purposes as 
51.28 	is provided in subdivision 16. Except for motorized bicycle dealers, the registrar shall 
51.29 	also issue to the dealer, upon request of the dealer, "in-transit" plates as provided in 
51.30 	subdivision 17 upon payment of a fee of $5 for each plate. This subdivision does not 
51.31 	abrogate any of the provisions of this section relating to the duties, responsibilities, and 
51.32 	requirements of persons, copartnerships, or corporations engaged in the business, either 
51.33 	exclusively or in addition to other occupations, of selling motor vehicles or manufactured 
51.34 	homes, except that a seller of boat trailers, utility trailers, or snowmobile trailers who 
52.1 	is licensed under this subdivision is not required to have a contract or franchise with a 
52.2 	manufacturer or distributor of new boat trailers, utility trailers, or new snowmobile trailers 
52.3 	the seller proposes to sell, broker, wholesale, or auction. This section does not require a 
52.4 	manufacturer of snowmobile trailers whose manufacturing facility is located outside of 
52.5 	the metropolitan area as defined in section 473.121 to have a dealer's license to transport 
52.6 	the snowmobile trailers to dealers or retail outlets in the state.

52.7 	Sec. 28. Minnesota Statutes 2014, section 168.33, subdivision 2, is amended to read:
52.8 		Subd. 2.Deputy registrars. (a) The commissioner may appoint, and for cause 
52.9 	discontinue, a deputy registrar for any statutory or home rule charter city as the public 
52.10 	interest and convenience may require, without regard to whether the county auditor of 
52.11 	the county in which the city is situated has been appointed as the deputy registrar for the 
52.12 	county or has been discontinued as the deputy registrar for the county, and without regard 
52.13 	to whether the county in which the city is situated has established a county license bureau 
52.14 	that issues motor vehicle licenses as provided in section 373.32.
52.15 	(b) The commissioner may appoint, and for cause discontinue, a deputy registrar 
52.16 	for any statutory or home rule charter city as the public interest and convenience may 
52.17 	require, if the auditor for the county in which the city is situated chooses not to accept 
52.18 	appointment as the deputy registrar for the county or is discontinued as a deputy registrar, 
52.19 	or if the county in which the city is situated has not established a county license bureau 
52.20 	that issues motor vehicle licenses as provided in section 373.32.
52.21 	(c) The commissioner may appoint, and for cause discontinue, the county auditor of 
52.22 	each county as a deputy registrar.
52.23 	(d) Despite any other provision, a person other than a county auditor or a director 
52.24 	of a county license bureau, who was appointed by the registrar before August 1, 1976, 
52.25 	as a deputy registrar for any statutory or home rule charter city, may continue to serve 
52.26 	as deputy registrar and may be discontinued for cause only by the commissioner. The 
52.27 	county auditor who appointed the deputy registrars is responsible for the acts of deputy 
52.28 	registrars appointed by the auditor.
52.29 	(e) Each deputy, before entering upon the discharge of duties, shall take and 
52.30 	subscribe an oath to faithfully discharge the duties and to uphold the laws of the state.
52.31 	(f) If a deputy registrar appointed under this subdivision is not an officer or employee 
52.32 	of a county or statutory or home rule charter city, the deputy shall in addition give bond to 
52.33 	the state in the sum of $10,000, or a larger sum as may be required by the commissioner, 
52.34 	conditioned upon the faithful discharge of duties as deputy registrar.
53.1 	(g) A corporation governed by chapter 302A or 317A may be appointed a deputy 
53.2 	registrar. Upon application by an individual serving as a deputy registrar and the giving of 
53.3 	the requisite bond as provided in this subdivision, personally assured by the individual or 
53.4 	another individual approved by the commissioner, a corporation named in an application 
53.5 	then becomes the duly appointed and qualified successor to the deputy registrar.
53.6 	(h) Each deputy registrar appointed under this subdivision shall keep and maintain 
53.7 	office locations approved by the commissioner for the registration of vehicles and the 
53.8 	collection of taxes and fees on vehicles.
53.9 	(i) The deputy registrar shall keep records and make reports to the commissioner as 
53.10 	the commissioner requires. The records must be maintained at the offices of the deputy 
53.11 	registrar. The records and offices of the deputy registrar must at all times be open to the 
53.12 	inspection of the commissioner or the commissioner's agents. The deputy registrar shall 
53.13 	report to the commissioner by the next working day following receipt all registrations 
53.14 	made and taxes and fees collected by the deputy registrar.
53.15 	(j) The filing feefees imposed under subdivision 7, paragraph (a), clauses (1) and 
53.16 	(3),  must be deposited in the treasury of the place for which appointed or, if not a public 
53.17 	official, a deputy shall retain the filing fee fees, but the registration tax and,  any additional 
53.18 	fees for delayed registration the deputy registrar has collected, and the surcharge imposed 
53.19 	under subdivision 7, paragraph (a), clause (2),  the deputy registrar shall deposit by the next 
53.20 	working day following receipt in an approved state depository to the credit of the state 
53.21 	through the commissioner of management and budget. The place for which the deputy 
53.22 	registrar is appointed through its governing body must provide the deputy registrar with 
53.23 	facilities and personnel to carry out the duties imposed by this subdivision if the deputy 
53.24 	is a public official. In all other cases, the deputy shall maintain a suitable facility for 
53.25 	serving the public.

53.26 	Sec. 29. Minnesota Statutes 2014, section 168.33, subdivision 7, is amended to read:
53.27 		Subd. 7.Filing fees and surcharge; allocations. (a) In addition to all other 
53.28 	statutory fees and taxes, a filing fee of:
53.29 	(1) a $6 filing fee is imposed on every vehicle registration renewal, excluding pro 
53.30 	rate transactions; and
53.31 	(2) a $10 surcharge is imposed on the fee for every vehicle registration renewal, 
53.32 	excluding pro rate transactions; and
53.33 	(3) a $10 filing fee is imposed on every other type of vehicle transaction, including 
53.34 	motor carrier fuel tax licenses under sections 168D.05 and 168D.06, and pro rate 
53.35 	transactions.
54.1 	(b) Notwithstanding paragraph (a):
54.2 	(1) a filing fee may not be charged for a document returned for a refund or for 
54.3 	a correction of an error made by the Department of Public Safety, a dealer, or a deputy 
54.4 	registrar; and
54.5 	(2) no filing fee or other fee may be charged for the permanent surrender of a title 
54.6 	for a vehicle.
54.7 	(c) The filing fee and surcharge must be shown as a separate item on all registration 
54.8 	renewal notices sent out by the commissioner.
54.9 	(d) The statutory fees and taxes, and the filing fees and surcharge imposed under 
54.10 	paragraph (a) may be paid by credit card or debit card. The deputy registrar may collect a 
54.11 	surcharge on the statutory fees, taxes,  statutory surcharge, and filing fee not greater than 
54.12 	the cost of processing a credit card or debit card transaction, in accordance with emergency 
54.13 	rules established by the commissioner of public safety. The surcharge authorized by this 
54.14 	paragraph must be used to pay the cost of processing credit and debit card transactions.
54.15 	(e) The fees and surcharge collected under this subdivisionparagraph (a) by the 
54.16 	department must be allocated as follows:
54.17 	(1) of the fees collected under paragraph (a), clause (1):
54.18 	(i) $4.50 must be deposited in the vehicle services operating account; and
54.19 	(ii) $1.50 must be deposited:
54.20 	(A) in the driver and vehicle services technology account until sufficient funds have 
54.21 	been deposited in that account to cover all costs of administration, development, and 
54.22 	initial full deployment of the driver and vehicle services information system; and
54.23 	(B) after completion of the deposit of funds under subitem (A) in the vehicle 
54.24 	services operating account; and
54.25 	(2) of the surcharge collected under paragraph (a), clause (2):
54.26 	(i) 50 percent must be deposited in the small city streets and bridges account under 
54.27 	section 174.54, subdivision 1; and
54.28 	(ii) 50 percent must be deposited in the larger city streets and bridges account under 
54.29 	section 174.54, subdivision 2; and
54.30 	(3) of the fees collected under paragraph (a), clause (2) (3):
54.31 	(i) $3.50 must be deposited in the general fund;
54.32 	(ii) $5.00 must be deposited in the vehicle services operating account; and
54.33 	(iii) $1.50 must be deposited:
54.34 	(A) in the driver and vehicle services technology account until sufficient funds have 
54.35 	been deposited in that account to cover all costs of administration, development, and 
54.36 	initial full deployment of the driver and vehicle services information system; and
55.1 	(B) after completion of the deposit of funds under subitem (A) in the vehicle services 
55.2 	operating account.

55.3 	EFFECTIVE DATE. Paragraph (a), clause (3), is effective the day following final 
55.4 	enactment. The remainder of the section is effective July 1, 2015.

55.5 	Sec. 30. Minnesota Statutes 2014, section 168.62, subdivision 3, is amended to read:
55.6 		Subd. 3.Special plates or certificate; fee; proceeds to highway user fund vehicle 
55.7 	services operating account. At the same time that an owner or operator of intercity buses 
55.8 	registers them in Minnesota and obtains number plates therefor, the owner or operator 
55.9 	shall apply for special identification plates or certificates for the remainder of that fleet 
55.10 	of intercity buses. The registrar of motor vehicles shall design an appropriate plate or 
55.11 	identification certificate for this purpose which shall be issued upon the payment of a 
55.12 	fee of $10$12.50 covering each intercity bus so identified. The proceeds of such fees 
55.13 	shall be deposited to the credit of the vehicle services operating account under section 
55.14 	299A.705, subdivision 1. No intercity bus shall at any time be operated in the state of 
55.15 	Minnesota without either Minnesota number plates or special identification plates or 
55.16 	certificates issued as herein provided.

55.17 	Sec. 31. Minnesota Statutes 2014, section 168A.07, is amended by adding a 
55.18 	subdivision to read:
55.19 		Subd. 3.Fees. The filing fee to create a conditional registration shall conform with 
55.20 	the fee provided in section 168.33, subdivision 7, paragraph (a), clause (3). A subsequent 
55.21 	removal and clearing of a conditional registration is considered a separate transaction and 
55.22 	requires payment of an additional filing fee of the same amount, provided the removal and 
55.23 	clearing was initiated by a motor vehicle dealer licensed under section 168.27.

55.24 	Sec. 32. [174.54] CITY STREETS AND BRIDGES ACCOUNTS.
55.25 		Subdivision 1.Small city streets and bridges account. A small city streets and 
55.26 	bridges account is created as a special revenue account and established in the state 
55.27 	treasury, consisting of money allotted, appropriated, or transferred through gift or grant 
55.28 	for the account. Money in the account must be appropriated to the commissioner of 
55.29 	transportation by law and apportioned among all the cities in the state that are not eligible 
55.30 	to receive municipal state aid and do not receive municipal state aid. The commissioner 
55.31 	shall apportion the money so that each city receives of the total amount the percentage that 
55.32 	its population bears to the total population of small cities in this state. Money apportioned 
56.1 	under this section must be used for construction, reconstruction, improvement, operations, 
56.2 	and maintenance of city streets and bridges.
56.3 		Subd. 2.Larger city streets and bridges account. A larger city streets and 
56.4 	bridges account is created as a special revenue account and established in the state 
56.5 	treasury, consisting of money allotted, appropriated, or transferred through gift or grant 
56.6 	for the account. Money in the account must be appropriated to the commissioner of 
56.7 	transportation by law and apportioned among all the cities in the state that are eligible 
56.8 	to receive municipal state aid. The commissioner shall apportion: (1) 50 percent of the 
56.9 	money so that each city receives of that amount the percentage that its population bears to 
56.10 	the total population of all cities that are eligible to receive municipal state aid; and (2) 
56.11 	50 percent of the money so that each city receives of that amount the percentage that its 
56.12 	money needs, as determined by the commissioner under section 162.13, subdivision 3, 
56.13 	bears to the total money needs of all cities that are eligible to receive municipal state aid. 
56.14 	Money apportioned under this section must be used for construction, reconstruction, 
56.15 	improvement, operations, and maintenance of city streets and bridges.

56.16 	Sec. 33. Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:
56.17 		Subd. 3.Motor vehicle lease sales tax revenue. (a) For purposes of this 
56.18 	subdivision, "net revenue" means an amount equal to the revenues, including interest 
56.19 	and penalties, collected under this section, during the fiscal year; less $32,000,000 
56.20 	$22,000,000 in each fiscal year.
56.21 	(b) On or before June 30 of each fiscal year, the commissioner of revenue shall 
56.22 	estimate the amount of the net revenuerevenues for the current fiscal year, including 
56.23 	interest and penalties collected during the fiscal year under this section.
56.24 	(c) On or after July 1 of the subsequent fiscal year, the commissioner of management 
56.25 	and budget shall transfer the net revenuerevenues as estimated in paragraph (b) from the 
56.26 	general fund, as follows:
56.27 	(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to 
56.28 	the county state-aid highway fund. 
56.29 	(d) Notwithstanding any other law to the contrary, the commissioner of transportation 
56.30 	shall allocate the funds transferred under this clauseparagraph (b) to the counties in the 
56.31 	metropolitan area, as defined in section 473.121, subdivision 4, excluding the counties of 
56.32 	Hennepin and Ramsey, so that each county shall receive of such amount the percentage 
56.33 	that its population, as defined in section 477A.011, subdivision 3, estimated or established 
56.34 	by July 15 of the year prior to the current calendar year, bears to the total population of the 
56.35 	counties receiving funds under this clause; and
57.1 	(2) the remainder to the greater Minnesota transit account. For the purposes of the 
57.2 	calculation in this paragraph, the population of Hennepin County shall first be multiplied 
57.3 	by 0.25, and the population of Ramsey County shall first be multiplied by 0.5.
57.4 	(e) The revenues transferred under this subdivision do not include the revenues, 
57.5 	including interest and penalties, generated by the sales tax imposed under section 
57.6 	297A.62, subdivision 1a, which must be deposited as provided under the Minnesota 
57.7 	Constitution, article XI, section 15.

57.8 	EFFECTIVE DATE. Paragraphs (a) through (c) are effective January 1, 2016, and 
57.9 	paragraph (d) is effective the day following final enactment.

57.10 	Sec. 34. Minnesota Statutes 2014, section 297B.03, is amended to read:
57.11 	297B.03 EXEMPTIONS.
57.12 		Subdivision 1.Scope. There is The purchases or acquisitions of a motor vehicle 
57.13 	listed in this section are  specifically exempted from the provisions of this chapter and from 
57.14 	computation of the amount of tax imposed by it the following:.
57.15 		Subd. 2.Federal government. (1) The purchase or use, including use under a 
57.16 	lease purchase agreement or installment sales contract made pursuant to section 465.71, 
57.17 	of any motor vehicle by the United States and its agencies and instrumentalities and 
57.18 	by any person described in and subject to the conditions provided in section 297A.67, 
57.19 	subdivision 11; is exempt.
57.20 		Subd. 3.Purchased while a resident of another state. (2) The purchase or use 
57.21 	of any motor vehicle by any person who was a resident of another state or country at the 
57.22 	time of the purchase and who subsequently becomes a resident of Minnesota, provided 
57.23 	the purchase occurred more than 60 days prior to the date such person began residing in 
57.24 	the state of Minnesota and the motor vehicle was registered in the person's name in the 
57.25 	other state or country; is exempt.
57.26 		Subd. 4.Interstate motor carriers. (3) The purchase or use of any motor vehicle 
57.27 	by any person making a valid election to be taxed under the provisions of section 297A.90; 
57.28 	is exempt.
57.29 		Subd. 5.Sale of a business. (4) The purchase or use of any motor vehicle previously 
57.30 	registered in the state of Minnesota when such transfer constitutes a transfer within the 
57.31 	meaning of section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 
57.32 	1563(a) of the Internal Revenue Code; is exempt.
57.33 		Subd. 6.Leased vehicles for interstate commerce. (5) The purchase or use of any 
57.34 	vehicle owned by a resident of another state and leased to a Minnesota-based private or 
58.1 	for-hire carrier for regular use in the transportation of persons or property in interstate 
58.2 	commerce provided the vehicle is titled in the state of the owner or secured party, and 
58.3 	that state does not impose a sales tax or sales tax on motor vehicles used in interstate 
58.4 	commerce; is exempt.
58.5 		Subd. 7.Use in automotive training programs. (6) The purchase or use of a motor 
58.6 	vehicle by a private nonprofit or public educational institution for use as an instructional 
58.7 	aid in automotive training programs operated by the institution. "Automotive training 
58.8 	programs" includes motor vehicle body and mechanical repair courses but does not 
58.9 	include driver education programs; is exempt.
58.10 		Subd. 8.Ambulance and emergency response. (7) The purchase of a motor 
58.11 	vehicle by an ambulance service licensed under section 144E.10 when that vehicle is 
58.12 	equipped and specifically intended for emergency response or for providing ambulance 
58.13 	service; is exempt.
58.14 		Subd. 9.Library use. (8) The purchase of a motor vehicle by or for a public 
58.15 	library, as defined in section 134.001, subdivision 2, as a bookmobile or library delivery 
58.16 	vehicle; is exempt.
58.17 		Subd. 10.Ready-mix concrete truck. (9) The purchase of a ready-mixed 
58.18 	ready-mix concrete truck; is exempt.
58.19 		Subd. 11.Local government road maintenance. (10) The purchase or use of a 
58.20 	motor vehicle by a town for use exclusively for road maintenance, including snowplows 
58.21 	and dump trucks, but not including automobiles, vans, or pickup trucks; is exempt.
58.22 		Subd. 12.Charitable use. (11) The purchase or use of a motor vehicle by a 
58.23 	corporation, society, association, foundation, or institution organized and operated 
58.24 	exclusively for charitable, religious, or educational purposes, except a public school, 
58.25 	university, or library is exempt, but only if the vehicle is:
58.26 	(i) (1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or 
58.27 	a passenger automobile, as defined in section 168.002, if the automobile is designed and 
58.28 	used for carrying more than nine persons including the driver; and
58.29 	(ii) (2) intended to be used primarily to transport tangible personal property 
58.30 	or individuals, other than employees, to whom the organization provides service in 
58.31 	performing its charitable, religious, or educational purpose;.
58.32 		Subd. 13.Transit use. (12) The purchase of a motor vehicle for use by a transit 
58.33 	provider exclusively to provide transit service is exempt if the transit provider is either (i) 
58.34 	receiving financial assistance or reimbursement under section 174.24 or 473.384, or (ii) 
58.35 	operating under section 174.29, 473.388, or 473.405; is exempt.
59.1 		Subd. 14.Job opportunity building zone. (13) The purchase or use of a motor 
59.2 	vehicle by a qualified business, as defined in section 469.310, located in a job opportunity 
59.3 	building zone, if the motor vehicle is principally garaged in the job opportunity building 
59.4 	zone and is primarily used as part of or in direct support of the person's operations carried 
59.5 	on in the job opportunity building zone. The exemption under this clause applies to sales, 
59.6 	if the purchase was made and delivery received during the duration of the job opportunity 
59.7 	building zone. The exemption under this clause also applies to any local sales and use 
59.8 	tax; is exempt.
59.9 		Subd. 15.Certain purchases from a nonprofit. (14) The purchase of a leased 
59.10 	vehicle by the lessee who was a participant in a lease-to-own program is exempt if the 
59.11 	purchase is from a charitable organization that is:
59.12 	(i) (1) described in section 501(c)(3) of the Internal Revenue Code; and
59.13 	(ii) (2) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and.
59.14 		Subd. 16.Mobile medical unit. (15) The purchase of a motor vehicle used 
59.15 	exclusively as a mobile medical unit for the provision of medical or dental services by a 
59.16 	federally qualified health center, as defined under title 19 of the Social Security Act, as 
59.17 	amended by Section 4161 of the Omnibus Budget Reconciliation Act of 1990 is exempt.

59.18 	Sec. 35. Minnesota Statutes 2014, section 297B.09, subdivision 1, is amended to read:
59.19 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
59.20 	chapter must be deposited as provided in this subdivision.
59.21 	(b) 60 58 percent of the money collected and received must be deposited in the 
59.22 	highway user tax distribution fund, 36 34 percent must be deposited in the metropolitan 
59.23 	area transit account under section 16A.88, and four eight percent must be deposited in the 
59.24 	greater Minnesota transit account under section 16A.88.
59.25 	(c) It is the intent of the legislature that the allocations under paragraph (b) remain 
59.26 	unchanged for fiscal year 2012 and all subsequent fiscal years.

59.27 	Sec. 36. CITY PARKING FACILITY FEE.
 59.28 		Subdivision 1.Definition. "Parking facility" means a parking area or structure 
59.29 	having parking spaces at which motor vehicles are permitted to park for a fee, whether 
59.30 	publicly or privately owned, but does not include residential parking spaces or parking 
59.31 	spaces on a public street, the use of which is regulated by parking meters.
59.32 		Subd. 2.Authorization to impose the fee. (a) The city of Minneapolis may 
59.33 	impose by ordinance a fee to be paid by the owner of each parking space located in a 
59.34 	parking facility within an area in the city of Minneapolis described as follows: west of the 
60.1 	Mississippi River, west of Interstate Highway 35W, north or east of Interstate Highway 
60.2 	94, and south of Plymouth Avenue.
60.3 	(b) The city of St. Paul may impose by ordinance a fee to be paid by the owner of each 
60.4 	parking space located in a parking facility within an area in the city of St. Paul described 
60.5 	as follows: north of the Mississippi River, west of the Lafayette bridge parking lots, south 
60.6 	of Interstate Highway 35E and Interstate Highway 94, and east of Chestnut Street.
60.7 		Subd. 3.Amount of fee. The amount of the fee may be uniform throughout the 
60.8 	district, or it may vary depending upon the nature and structure of the parking facility, 
60.9 	zoning, location, or other reasonable factors determined by the city.
60.10 		Subd. 4.Administration of fee. A city imposing a parking fee on a parking facility 
60.11 	under this section shall administer the fee locally. A city may provide by ordinance that 
60.12 	the payment of the parking facility fee be made on a monthly, quarterly, or annual basis.
60.13 		Subd. 5.Eligible uses of proceeds. Proceeds of the parking facility fee may be 
60.14 	utilized by the city imposing the fee for any eligible purpose under this section:
60.15 	(1) pedestrian improvements, including, but not limited to, sidewalks, trees, planters, 
60.16 	landscaping, benches, lighting, trash receptacles, signage, wayfinding, and informational 
60.17 	kiosks;
60.18 	(2) public plazas, including, but not limited to, improvements, operations, 
60.19 	maintenance, and programming, to include recreational and entertainment activities 
60.20 	designed to promote enjoyment of the city for Minnesotans and tourists of all ages. The 
60.21 	city of Minneapolis may designate proceeds for this purpose for downtown, or specifically 
60.22 	for Nicollet Mall, Peavey Plaza, or Downtown East Commons, or other similar locations. 
60.23 	The city of St. Paul may designate proceeds for this purpose for downtown, or specifically 
60.24 	for Rice Park, Mears Park, Wacouta Commons, Kellogg Park, Pedro Park, Central Station 
60.25 	Plaza, Cleveland Circle, or other similar locations; and
60.26 	(3) transit and bicycle facilities, including, but not limited to:
60.27 	(i) planning, design, engineering, property acquisition, and construction of the 
60.28 	downtown portion of a transit line or bicycle facility;
60.29 	(ii) maintaining and acquiring equipment, transit vehicles, and related facilities, such 
60.30 	as maintenance facilities, that need not be located in the parking facilities fee area;
60.31 	(iii) acquiring, improving, or constructing transit stations; and
60.32 	(iv) acquiring or improving public space, including the construction and installation 
60.33 	of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings 
60.34 	related to the downtown portion of a transit line or bicycle facility.

60.35 	EFFECTIVE DATE. Under Minnesota Statutes, section 645.023, subdivision 1, 
60.36 	this section is effective on July 1, 2015, without the requirement of local approval.

61.1 	Sec. 37.  REPEALER.
 61.2 	Minnesota Statutes 2014, section 161.081, subdivision 3, is repealed.

61.3 	EFFECTIVE DATE. This section is effective July 1, 2015.

61.4 	ARTICLE 7
61.5 	EFFICIENCY MEASURES

61.6 	Section 1. Minnesota Statutes 2014, section 16E.15, subdivision 2, is amended to read:
61.7 		Subd. 2.Software sale fund. (a) Except as provided in paragraph paragraphs (b) 
61.8 	and (c), proceeds of from the sale or licensing of software products or services by the chief 
61.9 	information officer must be credited to the MN.IT services revolving fund. If a state 
61.10 	agency other than the Office of MN.IT Services has contributed to the development of 
61.11 	software sold or licensed under this section, the chief information officer may reimburse 
61.12 	the agency by discounting computer services provided to that agency.
61.13 	(b) Proceeds of from the sale or licensing of software products or services developed 
61.14 	by the Pollution Control Agency, or custom developed by a vendor for the agency, must be 
61.15 	credited to the environmental fund.
61.16 	(c) Proceeds from the sale or licensing of software products or services developed 
61.17 	by the Department of Transportation, or custom developed by a vendor for the agency, 
61.18 	using trunk highway funds, must be credited to the trunk highway fund.

61.19 	Sec. 2. Minnesota Statutes 2014, section 161.088, subdivision 5, is amended to read:
61.20 		Subd. 5.Project selection process; criteria. (a) The commissioner shall establish a 
61.21 	process for identification, evaluation, and selection of projects under the program.
61.22 	(b) As part of the project selection process, the commissioner shall annually accept 
61.23 	recommendations on candidate projects from area transportation partnerships and other 
61.24 	interested stakeholders in each Department of Transportation district. For each candidate 
61.25 	project identified under this paragraph, the commissioner shall determine eligibility, 
61.26 	classify, and if appropriate, evaluate the project for the program.
61.27 	(c) Project evaluation and prioritization must be performed on the basis of objective 
61.28 	criteria, which must include:
61.29 	(1) a return on investment measure that provides for comparison across eligible 
61.30 	projects;
61.31 	(2) measurable impacts on commerce and economic competitiveness;
61.32 	(3) efficiency in the movement of freight, including but not limited to:
62.1 	(i) measures of annual average daily traffic and commercial vehicle miles traveled, 
62.2 	which may include data near the project location on that trunk highway or on connecting 
62.3 	trunk and local highways; and
62.4 	(ii) measures of congestion or travel time reliability, which may be within or near 
62.5 	the project limits, or both;
62.6 	(4) improvements to traffic safety;
62.7 	(5) connections to regional trade centers, local highway systems, and other 
62.8 	transportation modes;
62.9 	(6) the extent to which the project addresses multiple transportation system policy 
62.10 	objectives and principles; and
62.11 	(7) support and consensus for the project among members of the surrounding 
62.12 	community; and
62.13 	(8) the extent to which land has been acquired for the project.
62.14 	(d) As part of the project selection process, the commissioner may divide funding 
62.15 	to be separately available among projects within each classification under subdivision 3, 
62.16 	and may apply separate or modified criteria among those projects falling within each 
62.17 	classification.

62.18 	Sec. 3. Minnesota Statutes 2014, section 161.20, is amended by adding a subdivision 
62.19 	to read:
62.20 		Subd. 3a.Transfer of appropriations. With the approval of the commissioner of 
62.21 	management and budget, the commissioner of transportation may transfer unencumbered 
62.22 	balances among appropriations from the trunk highway fund and the state airports fund. 
62.23 	No transfer may be made from appropriations for state road construction, for operations 
62.24 	and maintenance, or for debt service. Transfers under this paragraph may not be made 
62.25 	between funds. Transfers under this paragraph must be reported immediately to the 
62.26 	chairs and ranking minority members of the legislative committees and divisions with 
62.27 	jurisdiction over transportation finance.

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

62.29 	Sec. 4. [161.225] LOANS FOR LAND ACQUISITION FOR HIGHWAY 
62.30 	PROJECTS.
62.31 		Subdivision 1.Account established. The state right-of-way acquisition loan 
62.32 	account is created in the trunk highway fund for the purposes specified in this section. 
62.33 	Money in the account is annually appropriated to the commissioner and does not lapse. 
63.1 	Interest from the investment of money in this account must be deposited in the state 
63.2 	right-of-way acquisition loan account.
63.3 		Subd. 2.Loans. (a) The commissioner may make loans to counties, towns, and 
63.4 	statutory and home rule charter cities to purchase property within the right-of-way of 
63.5 	a state trunk highway shown on an official map adopted pursuant to section 394.361 
63.6 	or 462.359, or to purchase property within the proposed right-of-way of a principal or 
63.7 	intermediate arterial highway. The loans shall be made from the fund established under this 
63.8 	subdivision for purchases approved by the commissioner. The loans shall bear no interest.
63.9 	(b) The commissioner shall make loans only to:
63.10 	(1) accelerate the acquisition of primarily undeveloped property when there 
63.11 	is a reasonable probability that the property will increase in value before highway 
63.12 	construction, and to update an expired environmental impact statement on a project for 
63.13 	which the right-of-way is being purchased;
63.14 	(2) avert the imminent conversion or the granting of approvals which would allow 
63.15 	the conversion of property to uses which would jeopardize its availability for highway 
63.16 	construction;
63.17 	(3) advance planning and environmental activities on highest priority major 
63.18 	metropolitan river crossing projects under the transportation development guide chapter 
63.19 	policy plan; or
63.20 	(4) take advantage of open market opportunities when developed properties become 
63.21 	available for sale, provided all parties involved are agreeable to the sale and funds are 
63.22 	available.
63.23 	(c) The commissioner shall not make loans to purchase property at a price which 
63.24 	exceeds the fair market value of the property or which includes the costs of relocating or 
63.25 	moving persons or property. The eminent domain process may be used to settle differences 
63.26 	of opinion as to fair market value, provided all parties agree to the process.
63.27 	(d) A private property owner may elect to receive the purchase price either 
63.28 	in a lump sum or in not more than four annual installments without interest on the 
63.29 	deferred installments. If the purchase agreement provides for installment payments, 
63.30 	the commissioner shall make the loan in installments corresponding to those in the 
63.31 	purchase agreement. The recipient of an acquisition loan shall convey the property for the 
63.32 	construction of the highway at the same price which the recipient paid for the property. The 
63.33 	price may include the costs of preparing environmental documents that were required for 
63.34 	the acquisition and that were paid for with money that the recipient received from the loan 
63.35 	fund. Upon notification by the commissioner that the plan to construct the highway has been 
63.36 	abandoned or the anticipated location of the highway has changed, the recipient shall sell 
64.1 	the property at market value in accordance with the procedures required for the disposition 
64.2 	of the property. All rents and other money received because of the recipient's ownership 
64.3 	of the property and all proceeds from the conveyance or sale of the property shall be paid 
64.4 	to the commissioner. If a recipient is not permitted to include in the conveyance price the 
64.5 	cost of preparing environmental documents that were required for the acquisition, then the 
64.6 	recipient is not required to repay the commissioner an amount equal to 40 percent of the 
64.7 	money received from the loan fund and spent in preparing the environmental documents.
64.8 	(e) For administration of the loan program, the commissioner may expend from the 
64.9 	fund each year an amount no greater than three percent of the amount of the proceeds for 
64.10 	that year.
64.11 		Subd. 3.Loans for acquisition and relocation. (a) The commissioner may 
64.12 	make loans to acquiring authorities within the metropolitan area to purchase homestead 
64.13 	property located in a proposed state trunk highway right-of-way or project, and to provide 
64.14 	relocation assistance. Acquiring authorities are authorized to accept the loans and to 
64.15 	acquire the property. Except as provided in this subdivision, the loans shall be made as 
64.16 	provided in subdivision 2. Loans shall be in the amount of the fair market value of the 
64.17 	homestead property plus relocation costs and less salvage value. Before construction of 
64.18 	the highway begins, the acquiring authority shall convey the property to the commissioner 
64.19 	at the same price it paid, plus relocation costs and less its salvage value. Acquisition and 
64.20 	assistance under this subdivision must conform to sections 117.50 to 117.56.
64.21 	(b) The commissioner may make loans only when:
64.22 	(1) the owner of affected homestead property requests acquisition and relocation 
64.23 	assistance from an acquiring authority;
64.24 	(2) federal or state financial participation is not available;
64.25 	(3) the owner is unable to sell the homestead property at its appraised market value 
64.26 	because the property is located in a proposed state trunk highway right-of-way or project as 
64.27 	indicated on an official map or plat adopted under section 160.085, 394.361, or 462.359; and
64.28 	(4) the commissioner agrees to and approves the fair market value of the homestead 
64.29 	property, which approval shall not be unreasonably withheld.
64.30 	(c) For purposes of this subdivision, the following terms have the meanings given 
64.31 	them:
64.32 	(1) "acquiring authority" means counties, towns, and statutory and home rule 
64.33 	charter cities;
64.34 	(2) "homestead property" means: (i) a single-family dwelling occupied by the 
64.35 	owner, and the surrounding land, not exceeding a total of ten acres; or (ii) a manufactured 
64.36 	home, as defined in section 327B.01, subdivision 13; and
65.1 	(3) "salvage value" means the probable sale price of the dwelling and other property 
65.2 	that is severable from the land if offered for sale on the condition that it be removed from 
65.3 	the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge 
65.4 	of the possible uses of the property, including separate use of serviceable components and 
65.5 	scrap when there is no other reasonable prospect of sale.

65.6 	EFFECTIVE DATE. This section is effective January 1, 2016.

65.7 	Sec. 5. Minnesota Statutes 2014, section 161.231, is amended to read:
65.8 	161.231 APPROPRIATION; PROCEEDS FROM LEASED STATE 
65.9 	PROPERTY.
65.10 	There is appropriated annually from the fund or account in the state treasury to which 
65.11 	the rental money from the sale, lease, conveyance, or disposal of state leased property 
65.12 	is credited a sufficient amount of money to carry out the state's obligations under the 
65.13 	provisions of sections 15.16, 117.135, 117.226, 161.16, 161.202,161.23, subdivision 3, 
65.14 	161.24, 161.241, 161.43, 161.433, 161.44, 161.442, and 272.68, subdivision 3, including 
65.15 	the inventorying, marketing, and property management activities required to sell, lease, 
65.16 	rent, permit, convey, or otherwise dispose of the land or the interest in the land. At the 
65.17 	discretion of the commissioner of transportation, money in the account at the end of each 
65.18 	biennium may cancel to the trunk highway fund.

65.19 	Sec. 6. Minnesota Statutes 2014, section 161.46, subdivision 2, is amended to read:
65.20 		Subd. 2.Relocation of facilities; reimbursement. (a) Whenever the commissioner 
65.21 	shall determine the relocation of any utility facility is necessitated by the construction of a 
65.22 	project on the routes of federally aided state trunk highways, including urban extensions 
65.23 	thereof, which routes are included within the National System of Interstate Highways, the 
65.24 	owner or operator of such utility facility shall relocate the same in accordance with the 
65.25 	order of the commissioner. After the completion of such relocation the cost thereof shall 
65.26 	be ascertained and paid by the state out of trunk highway funds; provided, however, the 
65.27 	amount to be paid by the state for such reimbursement shall not exceed the amount on 
65.28 	which the federal government bases its reimbursement for said interstate system.
65.29 	(b) Notwithstanding paragraph (a), any utility facility installed after August 1, 2015, 
65.30 	is not eligible for relocation reimbursement.

65.31 	Sec. 7. Minnesota Statutes 2014, section 168.013, subdivision 1g, is amended to read:
66.1 		Subd. 1g.Recreational vehicle. (a) Self-propelled recreational vehicles shall must 
66.2 	be separately licensed and taxed annually on the basis of total gross weight and. The 
66.3 	tax shall must be graduated according to the Minnesota base rate schedule prescribed 
66.4 	in subdivision 1e, but in no event less than $20, except as otherwise provided in this 
66.5 	subdivision.
66.6 	(b) For all self-propelled recreational vehicles, the tax for the ninth and succeeding 
66.7 	years of vehicle life shall be is 75 percent of the tax imposed in the Minnesota base rate 
66.8 	schedule.
66.9 	(c) Towed recreational vehicles shall must be separately licensed and taxed under 
66.10 	either one of the following, as determined by the vehicle owner: (1) annually on the basis 
66.11 	of total gross weight at 30 percent of the Minnesota base rate prescribed in subdivision 1e 
66.12 	but; or (2) once every three years on the basis of total gross weight at 90 percent of the 
66.13 	Minnesota base rate prescribed in subdivision 1e, provided that the filing fee under section 
66.14 	168.33, subdivision 7, paragraph (a), is multiplied by three, with funds collected by the 
66.15 	commissioner allocated proportionally in the same manner as provided in section 168.33, 
66.16 	subdivision 7, paragraph (e). In no event is the tax under this paragraph less than $5.
66.17 	(d) Notwithstanding any law to the contrary, all trailers and semitrailers taxed 
66.18 	pursuant to this section shall be are exempt from any wheelage tax now or hereafter 
66.19 	imposed by any political subdivision or political subdivisions.

66.20 	EFFECTIVE DATE. This section is effective the day following final enactment, 
66.21 	and applies to taxes payable for a registration period starting on or after January 1, 2016.

66.22 	Sec. 8. Minnesota Statutes 2014, section 168.013, subdivision 8, is amended to read:
66.23 		Subd. 8.Tax proceeds to highway user fund; fee proceeds to vehicle services 
66.24 	account. (a) Unless otherwise specified in this chapter, the net proceeds of the registration 
66.25 	tax imposed under this chapter, including the penalty surcharge for late payment, imposed 
66.26 	in section 168.31, subdivision 1a,  must be collected by the commissioner, paid into the 
66.27 	state treasury, and credited to the highway user tax distribution fund.
66.28 	(b) All fees collected under this chapter, unless otherwise specified, must be 
66.29 	deposited in the vehicle services operating account in the special revenue fund under 
66.30 	section 299A.705.

66.31 	EFFECTIVE DATE. This section is effective July 1, 2015, and applies to vehicle 
66.32 	registration taxes due and unpaid on and after that date.

66.33 	Sec. 9. Minnesota Statutes 2014, section 168.12, subdivision 1, is amended to read:
67.1 		Subdivision 1.Plates; design, visibility, periods of issuance. (a) The commissioner, 
67.2 	upon approval and payment, shall issue to the applicant the plates required by this chapter, 
67.3 	bearing the state name and an assigned vehicle registration number. The number assigned 
67.4 	by the commissioner may be a combination of a letter or sign with figures. The color of the 
67.5 	plates and the color of the abbreviation of the state name and the number assigned must 
67.6 	be in marked contrast. The plates must be lettered, spaced, or distinguished to suitably 
67.7 	indicate the registration of the vehicle according to the rules of the commissioner.
67.8 	(b) When a vehicle is registered on the basis of total gross weight, the plates issued 
67.9 	must clearly indicate by letters or other suitable insignia the maximum gross weight 
67.10 	for which the tax has been paid.
67.11 	(c) Plates issued to a noncommercial vehicle must bear the inscription 
67.12 	"noncommercial" unless the vehicle is displaying a special plate authorized and issued 
67.13 	under this chapter.
67.14 	(d) A one-ton pickup truck that is used for commercial purposes and is subject to 
67.15 	section 168.185, is eligible to display special plates as authorized and issued under this 
67.16 	chapter.
67.17 	(e) The plates must be so treated as to be at least 100 times brighter than the 
67.18 	conventional painted number plates. When properly mounted on an unlighted vehicle, the 
67.19 	plates, when viewed from a vehicle equipped with standard headlights, must be visible for 
67.20 	a distance of not less than 1,500 feet and readable for a distance of not less than 110 feet.
67.21 	(f) The commissioner shall issue plates for the following periods:
67.22 	(1) New plates issued pursuant to section 168.012, subdivision 1, must be issued to a 
67.23 	vehicle for as long as the vehicle is owned by the exempt agency and the plate shall not be 
67.24 	transferable from one vehicle to another but the plate may be transferred with the vehicle 
67.25 	from one tax-exempt agency to another.
67.26 	(2) Plates issued for passenger automobiles must be issued for a seven-year ten-year  
67.27 	period. All plates issued under this paragraph must be replaced if they are seven ten years 
67.28 	old or older at the time of registration renewal or will become so during the registration 
67.29 	period.
67.30 	(3) Plates issued under sections 168.053 and 168.27, subdivisions 16 and 17, must 
67.31 	be for a seven-year ten-year  period.
67.32 	(4) Plates issued under subdivisions 2c and 2d and section 168.123 must be issued 
67.33 	for the life of the veteran under section 169.79.
67.34 	(5) Plates for any vehicle not specified in clauses (1) to (3) must be issued for the 
67.35 	life of the vehicle.
68.1 	(g) In a year in which plates are not issued, the commissioner shall issue for each 
68.2 	registration a sticker to designate the year of registration. This sticker must show the year or 
68.3 	years for which the sticker is issued, and is valid only for that period. The plates and stickers 
68.4 	issued for a vehicle may not be transferred to another vehicle during the period for which 
68.5 	the sticker is issued, except when issued for a vehicle registered under section 168.187.
68.6 	(h) Despite any other provision of this subdivision, plates issued to a vehicle used 
68.7 	for behind-the-wheel instruction in a driver education course in a public school may 
68.8 	be transferred to another vehicle used for the same purpose without payment of any 
68.9 	additional fee. The public school shall notify the commissioner of each transfer of plates 
68.10 	under this paragraph. The commissioner may prescribe a format for notification.

68.11 	Sec. 10. Minnesota Statutes 2014, section 168.31, is amended by adding a subdivision 
68.12 	to read:
68.13 		Subd. 1a.Penalty surcharge for late payment. Except as otherwise provided in 
68.14 	subdivisions 4 and 4a, a vehicle owner who has failed to pay the tax required under this 
68.15 	chapter on or before the due date shall pay in full the tax due on the vehicle, together with 
68.16 	a penalty surcharge of $25 for each month or portion of a month following the expiration 
68.17 	of the registration period, except that the amount of the late fee may not exceed $100.

68.18 	EFFECTIVE DATE. This section is effective July 1, 2015, and applies to vehicle 
68.19 	registration taxes due and unpaid on and after that date.

68.20 	Sec. 11. [174.53] FEDERAL FUND FLEXIBILITY PROGRAM.
68.21 	The commissioner shall establish a program to allow greater flexibility and 
68.22 	efficiency in the allocation of federal funds for state-aid transportation projects. The 
68.23 	commissioner shall:
68.24 	(1) establish and administer selection criteria and a process under which a local unit 
68.25 	of government that would otherwise receive federal funds for a local transportation project 
68.26 	would be able to finance the project with state funds instead of federal funds;
68.27 	(2) redirect the unused federal funds to transportation projects for which federal 
68.28 	funds could be utilized by the state more efficiently and productively;
68.29 	(3) achieve a reasonable degree of equity among the department districts in 
68.30 	distributing funds under the program; and
68.31 	(4) ensure that the state's receipt of federal funds for transportation projects is not 
68.32 	jeopardized by the program.

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

69.1 	Sec. 12. Minnesota Statutes 2014, section 299A.465, subdivision 2, is amended to read:
69.2 		Subd. 2.Officer or firefighter killed in line of duty. (a) This subdivision applies 
69.3 	when a peace officer or, firefighter, or volunteer firefighter  is killed while on duty and 
69.4 	discharging the officer's or, firefighter's, or volunteer firefighter's  duties as a peace officer 
69.5 	or, firefighter, or volunteer firefighter.
69.6 	(b) The officer's or firefighter's employer shall continue to cover the deceased 
69.7 	officer's or firefighter's dependents, including the officer's or firefighter's spouse:
69.8 	(1) if the officer or, firefighter, or volunteer firefighter  was receiving dependent 
69.9 	coverage at the time of the officer's or, firefighter's, or volunteer firefighter's  death under 
69.10 	the employer's group health plan; or
69.11 	(2) if the officer's or, firefighter's, or volunteer firefighter's  spouse was not covered 
69.12 	as a dependent at the time of the officer's or, firefighter's, or volunteer firefighter's  death, 
69.13 	but at that time was eligible, or afterward becomes eligible, to be a dependent on the 
69.14 	employer's group health plan.
69.15 	(c) The employer is responsible for the employer's contribution for the coverage of 
69.16 	the officer's or, firefighter's, or volunteer firefighter's  dependents. Subject to subdivision 
69.17 	5, paragraph (b), clause (2), coverage must continue for a dependent of the officer or, 
69.18 	firefighter for the period of time that the person is a dependent up to the age of 65, or 
69.19 	volunteer firefighter as follows: (1) for a surviving spouse, until the surviving spouse 
69.20 	reaches the age of 65; and (2) for each other dependent, until the dependent reaches the 
69.21 	age of 26, except as otherwise provided in section 62L.02, subdivision 11.

69.22 	EFFECTIVE DATE. This section is effective January 1, 2016, and applies to 
69.23 	officer, firefighter, and volunteer firefighter deaths that occur on and after the effective date.

69.24 	Sec. 13. Minnesota Statutes 2014, section 299A.465, is amended by adding a 
69.25 	subdivision to read:
69.26 		Subd. 2a.Volunteer firefighter killed in line of duty. (a) This subdivision 
69.27 	applies when a volunteer firefighter is killed while on duty and discharging the volunteer 
69.28 	firefighter's duties as a volunteer firefighter and the municipality or municipalities that 
69.29 	operate the fire department did not offer a group health insurance policy to which a 
69.30 	volunteer firefighter was eligible to subscribe.
69.31 	(b) The municipality or municipalities that operate the fire department that the 
69.32 	volunteer firefighter served with shall, until coverage terminates as provided under 
69.33 	subdivision 2, paragraph (c), either: (1) provide health insurance coverage for the 
69.34 	volunteer firefighter's dependents that is equivalent to the average benefit provided by the 
69.35 	municipality or municipalities to dependents of its employees who are covered by the 
70.1 	plan, or (2) reimburse the dependents, if the municipality or municipalities do not offer a 
70.2 	group health insurance plan for any employees, for a minimum of 50 percent of the cost of 
70.3 	health insurance premiums for coverage selected by the dependents.

70.4 	EFFECTIVE DATE. This section is effective January 1, 2016, and applies to 
70.5 	volunteer firefighter deaths that occur on and after the effective date.

70.6 	Sec. 14. Minnesota Statutes 2014, section 299A.465, subdivision 5, is amended to read:
70.7 		Subd. 5.Definition. For purposes of this section:
70.8 	(a) "Peace officer" or "officer" has the meaning given in section 626.84, subdivision 
70.9 	1, paragraph (c).
70.10 	(b) "Dependent" means a person who: (1)  meets the definition of dependent in 
70.11 	section 62L.02, subdivision 11, at the time of the officer's or firefighter's injury or death. a 
70.12 	person ; and (2) is not a dependent for purposes of this section during the period of time the 
70.13 	person is covered under another group health plan. For purposes of this section, a volunteer 
70.14 	firefighter is deemed to be an eligible employee under section 62L.02, subdivision 13.
70.15 	(c) "Firefighter" has the meaning given in Minnesota Statutes 2000, section 424.03, 
70.16 	but does not include volunteer firefighters.
70.17 	(d) "Volunteer firefighter" has the meaning given in section 299N.03, subdivision 7, 
70.18 	and includes paid per call.
70.19 	(e) "Fire department" has the meaning given in section 299N.03, subdivision 4.

70.20 	EFFECTIVE DATE. This section is effective January 1, 2016, and applies to 
70.21 	officer and firefighter deaths that occur on and after the effective date.

70.22 	Sec. 15. Minnesota Statutes 2014, section 299A.465, is amended by adding a 
70.23 	subdivision to read:
70.24 		Subd. 5a.Minimum benefit. Nothing in this section prohibits an employer from 
70.25 	providing benefits to survivors of deceased volunteer firefighters that are greater than the 
70.26 	benefits required under this section.

70.27 	Sec. 16. Minnesota Statutes 2014, section 299D.09, is amended to read:
70.28 	299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
70.29 	(a) Fees charged for escort services provided by the State Patrol are annually 
70.30 	appropriated to the commissioner of public safety to administer and provide these services.
70.31 	(b) The fee charged for services provided by the State Patrol with a vehicle is $79.28 
70.32 	an hour. The fee charged for services provided without a vehicle is $59.28 an hour 
71.1 	shall be set to recover actual costs as determined by the commissioner of public safety 
71.2 	by July 1 each year.
71.3 	(c) The fees charged for State Patrol flight services are $140 an hour for a fixed wing 
71.4 	aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air in fiscal year 
71.5 	2012; and $139.64 an hour for a fixed wing aircraft, $560.83 an hour for a helicopter, and 
71.6 	$454.84 an hour for the Queen Air in fiscal year 2013 and thereafter.

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

71.8 	Sec. 17. [299F.037] REPORTING FIREFIGHTER DEATHS.
71.9 	Whenever an active firefighter dies, whether or not the death is presumed to be in the 
71.10 	line of duty, the fire chief of the deceased firefighter must report, without undue delay, 
71.11 	the death to the state fire marshal. The notification shall identify the cause of death and 
71.12 	contain information concerning the circumstances of the death.

71.13 	Sec. 18. Minnesota Statutes 2014, section 360.024, is amended to read:
71.14 	360.024 AIR TRANSPORTATION SERVICE CHARGE.
71.15 	The commissioner shall charge users of air transportation services provided by the 
71.16 	commissioner for direct operating costs, excluding pilot salary and aircraft acquisition 
71.17 	costs. All receipts for these services shall be deposited in the air transportation services 
71.18 	account in the state airports fund and are appropriated to the commissioner to pay these 
71.19 	direct air service operating costs.

71.20 	Sec. 19. Minnesota Statutes 2014, section 473.167, is amended to read:
71.21 	473.167 HIGHWAY AND TRANSIT PROJECTS.
71.22 		Subd. 2.Loans for acquisition. (a) The council may make loans to counties, towns, 
71.23 	and statutory and home rule charter cities within the metropolitan area for the purchase of 
71.24 	property within the right-of-way of a state trunk highway shown on an official map adopted 
71.25 	pursuant to section 394.361 or 462.359or, for the purchase of property within the proposed 
71.26 	right-of-way of a principal or intermediate arterial highway designated by the council as a 
71.27 	part of the metropolitan highway system plan and approved by the council pursuant to 
71.28 	section 473.166, or for the purchase of property needed for proposed transit-related capital 
71.29 	improvements, including transitways designated in the council's most recent transportation 
71.30 	policy plan. The loans shall be made by the council, from the fund established pursuant to 
71.31 	this subdivision, for purchases approved by the council. The loans shall bear no interest.
71.32 	(b) The council shall make loans only:
72.1 	(1) to accelerate the acquisition of primarily undeveloped property when there 
72.2 	is a reasonable probability that the property will increase in value before highway or 
72.3 	transit-related construction, and to update an expired environmental impact statement on 
72.4 	a project for which the right-of-way is being purchased;
72.5 	(2) to avert the imminent conversion or the granting of approvals which would allow 
72.6 	the conversion of property to uses which would jeopardize its availability for highway or 
72.7 	transit-related construction;
72.8 	(3) to advance planning and environmental activities on highest priority major 
72.9 	metropolitan river crossing projects, under the transportation development guide 
72.10 	chapter/policy plan; or
72.11 	(4) to take advantage of open market opportunities when developed properties 
72.12 	become available for sale, provided all parties involved are agreeable to the sale and 
72.13 	funds are available.
72.14 	(c) The council shall not make loans for the purchase of property at a price which 
72.15 	exceeds the fair market value of the property or which includes the costs of relocating or 
72.16 	moving persons or property. The eminent domain process may be used to settle differences 
72.17 	of opinion as to fair market value, provided all parties agree to the process.
72.18 	(d) A private property owner may elect to receive the purchase price either in a 
72.19 	lump sum or in not more than four annual installments without interest on the deferred 
72.20 	installments. If the purchase agreement provides for installment payments, the council 
72.21 	shall make the loan in installments corresponding to those in the purchase agreement. The 
72.22 	recipient of an acquisition loan shall convey the property for the construction of the highway 
72.23 	at the same price which the recipient paid for the property. The price may include the costs 
72.24 	of preparing environmental documents that were required for the acquisition and that were 
72.25 	paid for with money that the recipient received from the loan fund. Upon notification by 
72.26 	the council that the plan to construct the highway or transit project has been abandoned or 
72.27 	the anticipated location of the highway or transit project changed, the recipient shall sell 
72.28 	the property at market value in accordance with the procedures required for the disposition 
72.29 	of the property. All rents and other money received because of the recipient's ownership 
72.30 	of the property and all proceeds from the conveyance or sale of the property shall be paid 
72.31 	to the council. If a recipient is not permitted to include in the conveyance price the cost 
72.32 	of preparing environmental documents that were required for the acquisition, then the 
72.33 	recipient is not required to repay the council an amount equal to 40 percent of the money 
72.34 	received from the loan fund and spent in preparing the environmental documents.
72.35 	(e) The proceeds of the tax authorized by subdivision 3, all money paid to the 
72.36 	council by recipients of loans, and all interest on the proceeds and payments shall be 
73.1 	maintained as a separate fund. For administration of the loan program, the council may 
73.2 	expend from the fund each year an amount no greater than three percent of the amount of 
73.3 	the proceeds for that year.
73.4 		Subd. 2a.Loans for acquisition and relocation. (a) The council may make loans 
73.5 	to acquiring authorities within the metropolitan area to purchase homestead property 
73.6 	located in a proposed state trunk highway right-of-way or project or transit-related project, 
73.7 	and to provide relocation assistance. Acquiring authorities are authorized to accept the 
73.8 	loans and to acquire the property. Except as provided in this subdivision, the loans shall 
73.9 	be made as provided in subdivision 2. Loans shall be in the amount of the fair market 
73.10 	value of the homestead property plus relocation costs and less salvage value. Before 
73.11 	construction of the highway or transit-related project begins, the acquiring authority shall 
73.12 	convey the property to the commissioner of transportation or council at the same price it 
73.13 	paid, plus relocation costs and less its salvage value. Acquisition and assistance under this 
73.14 	subdivision must conform to sections 117.50 to 117.56.
73.15 	(b) The council may make loans only when:
73.16 	(1) the owner of affected homestead property requests acquisition and relocation 
73.17 	assistance from an acquiring authority;
73.18 	(2) federal or state financial participation is not available;
73.19 	(3) the owner is unable to sell the homestead property at its appraised market 
73.20 	value because the property is located in a proposed state trunk highway right-of-way or 
73.21 	project as indicated on an official map or plat adopted under section 160.085, 394.361, 
73.22 	or 462.359, or transit-related project; and
73.23 	(4) the council agrees to and approves the fair market value of the homestead 
73.24 	property, which approval shall not be unreasonably withheld.
73.25 	(c) For purposes of this subdivision, the following terms have the meanings given 
73.26 	them.
73.27 	(1) "Acquiring authority" means counties, towns, and statutory and home rule 
73.28 	charter cities in the metropolitan area.
73.29 	(2) "Homestead property" means: (i) a single-family dwelling occupied by the 
73.30 	owner, and the surrounding land, not exceeding a total of ten acres; or (ii) a manufactured 
73.31 	home, as defined in section 327B.01, subdivision 13.
73.32 	(3) "Salvage value" means the probable sale price of the dwelling and other property 
73.33 	that is severable from the land if offered for sale on the condition that it be removed from 
73.34 	the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge 
73.35 	of the possible uses of the property, including separate use of serviceable components and 
73.36 	scrap when there is no other reasonable prospect of sale.
74.1 		Subd. 3.Tax. The council may levy a tax on all taxable property in the metropolitan 
74.2 	area, as defined in section 473.121, to provide funds for loans made pursuant to 
74.3 	subdivisions 2 and 2a. This tax for the right-of-way acquisition loan fund shall be certified 
74.4 	by the council, levied, and collected in the manner provided by section 473.13. The tax 
74.5 	shall be in addition to that authorized by section 473.249 and any other law and shall not 
74.6 	affect the amount or rate of taxes which may be levied by the council or any metropolitan 
74.7 	agency or local governmental unit. The amount of the levy shall be as determined and 
74.8 	certified by the council, provided that the tax levied by the Metropolitan Council for the 
74.9 	right-of-way acquisition loan fund shall not exceed $2,828,379 for taxes payable in 2004 
74.10 	and $2,828,379 for taxes payable in 2005. The amount of the levy for taxes payable in 
74.11 	2006 and subsequent years shall not exceed the product of (1) the Metropolitan Council's 
74.12 	property tax levy limitation under this subdivision for the previous year, multiplied by 
74.13 	(2) one plus a percentage equal to the growth in the implicit price deflator as defined 
74.14 	in section 275.70, subdivision 2.
74.15 		Subd. 4.State review. The commissioner of revenue shall certify the council's levy 
74.16 	limitation under this section to the council by August 1 of the levy year. The council must 
74.17 	certify its proposed property tax levy to the commissioner of revenue by September 1 of 
74.18 	the levy year. The commissioner of revenue shall annually determine whether the property 
74.19 	tax for the right-of-way acquisition loan fund certified by the Metropolitan Council for 
74.20 	levy following the adoption of its proposed budget is within the levy limitation imposed 
74.21 	by this section. The determination must be completed prior to September 10 of each year. 
74.22 	If current information regarding market valuation in any county is not transmitted to the 
74.23 	commissioner in a timely manner, the commissioner may estimate the current market 
74.24 	valuation within that county for purposes of making the calculation.

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

74.26 	Sec. 20. Laws 2014, chapter 312, article 11, section 33, is amended to read:
74.27 	Sec. 33. TRANSPORTATION EFFICIENCIES.
 74.28 	(a) The commissioner of transportation shall include in the report under Minnesota 
74.29 	Statutes, section 174.56, due by December 15, 2015, information on efficiencies 
74.30 	implemented in fiscal year 2015 in planning and project management and delivery, 
74.31 	along with an explanation of the efficiencies employed to achieve the savings and the 
74.32 	methodology used in the calculations. The level of savings achieved must equal, in 
74.33 	comparison with the total state road construction budget for that year, a minimum of five 
74.34 	percent in fiscal year 2015. The report must identify the projects that have been advanced 
74.35 	or completed due to the implementation of efficiency measures.
75.1 	(b) The commissioner shall identify in the report those recommendations from the 
75.2 	Transportation Strategic Management and Operations Advisory Task Force Report dated 
75.3 	January 23, 2009, submitted to the legislature by the Departments of Administration 
75.4 	and Transportation, as required by Laws 2008, chapter 152, article 6, section 9, 
75.5 	that the commissioner has implemented, with a description of current status of the 
75.6 	recommendation and results of implementation.
75.7 	(c) The commissioner shall present in the report plans to incorporate greater 
75.8 	efficiencies in department operation and decision-making, including, but not limited to, 
75.9 	the following: financing innovations, mode choice in project selection and design, land 
75.10 	use planning, return on investment calculation, project delivery, including selection of 
75.11 	materials and decreasing project delivery time, and efficiencies in multiagency permitting.

75.12 	ARTICLE 8
75.13 	TRANSPORTATION POLICY

75.14 	Section 1. Minnesota Statutes 2014, section 168.002, subdivision 24, is amended to read:
75.15 		Subd. 24.Passenger automobile. (a) "Passenger automobile" means any motor 
75.16 	vehicle designed and used for carrying not more than 15 individuals, including the driver.
75.17 	(b) "Passenger automobile" does not include motorcycles, motor scooters, buses, 
75.18 	school buses, or commuter vans as defined in section 168.126.
75.19 	(c) "Passenger automobile" includes, but is not limited to:
75.20 	(1) a vehicle that is a pickup truck or a van as defined in subdivisions 26 and 40;
75.21 	(2) neighborhood electric vehicles, as defined in section 169.011, subdivision 47; and
75.22 	(3) medium-speed electric vehicles, as defined in section 169.011, subdivision 39; and
75.23 	(4) unconventional vehicles, as defined in section 169.011, subdivision 89a.

75.24 	Sec. 2. Minnesota Statutes 2014, section 168.053, subdivision 1, is amended to read:
75.25 		Subdivision 1.Application; fee; penalty. Any person, firm, or corporation with 
75.26 	a business located in Minnesota engaged in the business of transporting motor vehicles 
75.27 	owned by another, by delivering, by drive-away or towing methods, either singly or by 
75.28 	means of the full mount method, the saddle mount method, the tow bar method, or any other 
75.29 	combination thereof, and under their own power, vehicles over the highways of the state 
75.30 	from the manufacturer or any other point of origin, to any point of destination, within or 
75.31 	without the state, shall make application to the registrar for a drive-away in-transit license. 
75.32 	This application for annual license shall be accompanied by a registration fee of $250 and 
75.33 	contain information the registrar may require. Upon the filing of the application and the 
75.34 	payment of the fee, the registrar shall issue to each drive-away operator a drive-away 
76.1 	in-transit license plate, which must be carried and displayed on the power unit consistent 
76.2 	with section 169.79 and the plate shall remain on the vehicle while being operated within 
76.3 	Minnesota transported. The license plate issued under this subdivision is not valid for the 
76.4 	purpose of permanent vehicle registration and is not valid outside Minnesota. Additional 
76.5 	drive-away in-transit license plates desired by any drive-away operator may be secured 
76.6 	from the registrar of motor vehicles upon the payment of a fee of $5 for each set of 
76.7 	additional license plates. Any person, firm, or corporation engaging in the business as a 
76.8 	drive-away operator, of transporting and delivering by means of full mount method, the 
76.9 	saddle mount method, the tow bar method, or any combination thereof, and under their 
76.10 	own power, motor vehicles, who fails or refuses to file or cause to be filed an application, 
76.11 	as is required by law, and to pay the fees therefor as the law requires, shall be found guilty 
76.12 	of violating the provisions of sections 168.053 to 168.057; and, upon conviction, fined 
76.13 	not less than $50, and not more than $100, and all costs of court. Each day so operating 
76.14 	without securing the license and plates as required shall constitute a separate offense.

76.15 	Sec. 3. [168.1294] "BREAST CANCER AWARENESS" PLATES.
76.16 		Subdivision 1.Issuance of plates. The commissioner shall issue special "Breast 
76.17 	Cancer Awareness" plates or a single motorcycle plate to an applicant who:
76.18 	(1) is a registered owner of a passenger automobile, one-ton pickup truck, 
76.19 	motorcycle, or recreational motor vehicle;
76.20 	(2) pays a fee of $12.50 for each set of plates;
76.21 	(3) pays the registration tax as required under section 168.013, along with any 
76.22 	other fees required by this chapter;
76.23 	(4) contributes a minimum of $20 to the Masonic Cancer Center at the University of 
76.24 	Minnesota for breast cancer research; and
76.25 	(5) complies with this chapter and rules governing registration of motor vehicles 
76.26 	and licensing of drivers.
76.27 		Subd. 2.Design. The commissioner shall design the special plate to contain the 
76.28 	inscription "Minnesota Cares" and the pink breast cancer ribbon.
76.29 		Subd. 3.Plates transfer. On application to the commissioner and payment of a 
76.30 	transfer fee of $5, special plates issued under this section may be transferred to another 
76.31 	motor vehicle if the subsequent vehicle is:
76.32 	(1) qualified under subdivision 1, clause (1), to bear the special plates; and
76.33 	(2) registered to the same individual to whom the special plates were originally issued.
76.34 		Subd. 4.Exemption. Special plates issued under this section are not subject to 
76.35 	section 168.1293, subdivision 2.
77.1 		Subd. 5.Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are 
77.2 	credited to the vehicle services operating account in the special revenue fund.
77.3 		Subd. 6.No refund. Contributions under this section must not be refunded.

77.4 	EFFECTIVE DATE. This section is effective January 1, 2016, for plates issued 
77.5 	on or after that date.

77.6 	Sec. 4. Minnesota Statutes 2014, section 168A.05, is amended by adding a subdivision 
77.7 	to read:
77.8 		Subd. 10.Unconventional vehicles; certificate required. Unconventional 
77.9 	vehicles, as defined in section 169.011, subdivision 89a, must be titled as specified in 
77.10 	section 168A.02. The commissioner shall issue a title for an unconventional vehicle 
77.11 	(1) having a vehicle identification number or other alphanumeric sequence assigned 
77.12 	by the manufacturer for the purpose of identifying that vehicle, and (2) for which the 
77.13 	requirements under this chapter are met.

77.14 	Sec. 5. Minnesota Statutes 2014, section 168D.06, is amended to read:
77.15 	168D.06 FUEL LICENSE FEES.
77.16 	License fees paid to the commissioner under the International Fuel Tax Agreement 
77.17 	must be deposited in the vehicle services operating account in the special revenue fund 
77.18 	under section 299A.705. The commissioner shall charge an annual fuel license fee of 
77.19 	$15, and an annual application filing fee of $13 for quarterly reporting of fuel tax, and a 
77.20 	reinstatement fee of $100 to reinstate a revoked International Fuel Tax Agreement license.

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

77.22 	Sec. 6. Minnesota Statutes 2014, section 169.011, is amended by adding a subdivision 
77.23 	to read:
77.24 		Subd. 89a.Unconventional vehicle. (a) "Unconventional vehicle" means a motor 
77.25 	vehicle that:
77.26 	(1) has at least three wheels;
77.27 	(2) has an unloaded weight of 300 to 8,000 pounds;
77.28 	(3) contains a permanent upright seat or saddle for the driver that is mounted at least 
77.29 	24 inches from the ground; and
77.30 	(4) has a speed attainable in one mile of at least 60 miles per hour on a level paved 
77.31 	surface.
78.1 	(b) An unconventional vehicle does not include any motor vehicle that is otherwise 
78.2 	defined under section 168.002 and able to be registered under chapter 168. The exclusion 
78.3 	under this paragraph applies but is not limited to an all-terrain vehicle, motorcycle, 
78.4 	motorized bicycle, neighborhood electric vehicle, and medium-speed electric vehicle.

78.5 	Sec. 7. [169.2245] UNCONVENTIONAL VEHICLE.
78.6 	A person may operate an unconventional vehicle on public streets and highways, 
78.7 	except on a freeway, as defined in section 160.02, subdivision 19. A road authority, 
78.8 	including the commissioner of transportation by order, may prohibit operation of 
78.9 	unconventional vehicles on any street or highway under the road authority's jurisdiction.

78.10 	Sec. 8. Minnesota Statutes 2014, section 169.798, subdivision 4, is amended to read:
78.11 		Subd. 4.Attestation of Insurance information required. Every owner, when 
78.12 	applying for motor vehicle or motorcycle registration, reregistration, or transfer of 
78.13 	ownership, must attestprovide information showing that the motor vehicle or motorcycle 
78.14 	is covered by an insurance policy. Information required under this subdivision consists 
78.15 	of the insurance company's name, the policy number, and the policy expiration date for 
78.16 	the subject motor vehicle or motorcycle.

78.17 	EFFECTIVE DATE. This section is effective January 1, 2016, and applies to 
78.18 	registrations, reregistrations, and transfers of ownership occurring on or after that date.

78.19 	Sec. 9. Minnesota Statutes 2014, section 171.01, is amended by adding a subdivision 
78.20 	to read:
78.21 		Subd. 31c.Driving privilege license. "Driving privilege license" means a class 
78.22 	D license, instruction permit, or provisional license to operate a motor vehicle issued or 
78.23 	issuable under the laws of this state by the commissioner of public safety to a person who 
78.24 	is unable to demonstrate legal presence in this country through current lawful admission 
78.25 	status, permanent resident status, indefinite authorized presence status, or United 
78.26 	States citizenship. A driving privilege license may be used only for driving and not as 
78.27 	identification or proof of legal presence or citizenship. A driving privilege license must not 
78.28 	be used or accepted for voter registration purposes under section 201.061. All provisions 
78.29 	in this chapter relating to drivers' licenses, instruction permits, and provisional licenses, 
78.30 	including cancellation, suspension, revocation, reinstatement, examination, restriction, 
78.31 	expiration, renewal, and unlawful acts and violations, apply to a driving privilege license.

79.1 	EFFECTIVE DATE. This section is effective January 1, 2016, for a new driver's 
79.2 	license, permit, or identification card, and a renewal issued on or after that date.

79.3 	Sec. 10. Minnesota Statutes 2014, section 171.01, subdivision 37, is amended to read:
79.4 		Subd. 37.License. "License" means any operator's license or any other license or 
79.5 	permit to operate a motor vehicle issued or issuable under the laws of this state by the 
79.6 	commissioner of public safety including:
79.7 	(1) any temporary license, driving privilege license, instruction permit, or 
79.8 	provisional license;
79.9 	(2) the privilege of any person to drive a motor vehicle whether or not the person 
79.10 	holds a valid license; and
79.11 	(3) any nonresident's operating privilege.

79.12 	EFFECTIVE DATE. This section is effective January 1, 2016, for a new driver's 
79.13 	license, permit, or identification card, and a renewal issued on or after that date.

79.14 	Sec. 11. Minnesota Statutes 2014, section 171.01, subdivision 49a, is amended to read:
79.15 		Subd. 49a.Valid license; valid driver's license. "Valid license," "valid driver's 
79.16 	license," "valid Minnesota driver's license," "valid standard driver's license," or other 
79.17 	similar term, means any operator's license, provisional license, driving privilege license, 
79.18 	temporary license, limited license, permit, or other license to operate a motor vehicle 
79.19 	issued or issuable under the laws of this state by the commissioner, or by another state or 
79.20 	jurisdiction if specified, that is:
79.21 	(1) not expired, suspended, revoked, or canceled; and
79.22 	(2) not disqualified for the class of vehicle being operated.

79.23 	EFFECTIVE DATE. This section is effective January 1, 2016, for a new driver's 
79.24 	license, permit, or identification card, and a renewal issued on or after that date.

79.25 	Sec. 12. Minnesota Statutes 2014, section 171.06, subdivision 1, is amended to read:
79.26 		Subdivision 1.Forms of application. Every application for a Minnesota 
79.27 	identification card, for an enhanced identification card, for an instruction permit, for 
79.28 	a provisional license, for a driver's license, driving privilege license, or for an enhanced 
79.29 	driver's license must be made in a format approved by the department, and every 
79.30 	application must be accompanied by the proper fee. All first-time applications and 
79.31 	change-of-status applications must be signed in the presence of the person authorized to 
79.32 	accept the application, or the signature on the application may be verified by a notary 
80.1 	public. All applications requiring evidence of legal presence in the United States or United 
80.2 	States citizenship must be signed in the presence of the person authorized to accept the 
80.3 	application, or the signature on the application may be verified by a notary public.

80.4 	EFFECTIVE DATE. This section is effective January 1, 2016, for a new driver's 
80.5 	license, permit, or identification card, and a renewal issued on or after that date.

80.6 	Sec. 13. Minnesota Statutes 2014, section 171.06, subdivision 2, is amended to read:
80.7 		Subd. 2.Fees. (a) The fees for a license and Minnesota identification card are 
80.8 	as follows:

80.9	Classified Driver's License
		D-$17.25
	C-$21.25
	B-$28.25
	A-$36.25
	
80.10	Classified Under-21 D.L.
		D-$17.25
	C-$21.25
	B-$28.25
	A-$16.25
	
80.11	Driving Privilege License
		D-$17.25
	-
	-
	-
	
80.12	Enhanced Driver's License
		D-$32.25
	C-$36.25
	B-$43.25
	A-$51.25
	
80.13	Instruction Permit
					$5.25
	
80.14
80.15	Enhanced Instruction 
Permit
					$20.25
	
80.16
80.17	Commercial Learner's 
Permit
					$2.50
	
80.18	Provisional License
					$8.25
	
80.19
80.20	Enhanced Provisional 
License
					$23.25
	
80.21
80.22
80.23	Duplicate License or 
duplicate identification 
card
					$6.75
	
80.24
80.25
80.26
80.27	Enhanced Duplicate 
License or enhanced 
duplicate identification 
card
					$21.75
	
80.28
80.29
80.30
80.31
80.32
80.33
80.34	Minnesota identification 
card or Under-21 
Minnesota identification 
card, other than duplicate, 
except as otherwise 
provided in section 171.07, 
subdivisions 3 and 3a
					$11.25
	
80.35
80.36	Enhanced Minnesota 
identification card
					$26.25
	
80.37 	In addition to each fee required in this paragraph, the commissioner shall collect a 
80.38 	surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30, 
80.39 	2016. Surcharges collected under this paragraph must be credited to the driver and vehicle 
80.40 	services technology account in the special revenue fund under section 299A.705.
80.41 	(b) Notwithstanding paragraph (a), an individual who holds a provisional license and 
80.42 	has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 
81.1 	169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving 
81.2 	violations, and (3) convictions for moving violations that are not crash related, shall have a 
81.3 	$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation" 
81.4 	has the meaning given it in section 171.04, subdivision 1.
81.5 	(c) In addition to the driver's license fee required under paragraph (a), the 
81.6 	commissioner shall collect an additional $4 processing fee from each new applicant 
81.7 	or individual renewing a license with a school bus endorsement to cover the costs for 
81.8 	processing an applicant's initial and biennial physical examination certificate. The 
81.9 	department shall not charge these applicants any other fee to receive or renew the 
81.10 	endorsement.
81.11 	(d) In addition to the fee required under paragraph (a), a driver's license agent may 
81.12 	charge and retain a filing fee as provided under section 171.061, subdivision 4.
81.13 	(e) In addition to the fee required under paragraph (a), the commissioner shall 
81.14 	charge a filing fee at the same amount as a driver's license agent under section 171.061, 
81.15 	subdivision 4. Revenue collected under this paragraph must be deposited in the driver 
81.16 	services operating account.
81.17 	(f) An application for a Minnesota identification card, instruction permit, provisional 
81.18 	license, driving privilege license, or driver's license, including an application for renewal, 
81.19 	must contain a provision that allows the applicant to add to the fee under paragraph (a), 
81.20 	a $2 donation for the purposes of public information and education on anatomical gifts 
81.21 	under section 171.075.

81.22 	EFFECTIVE DATE. This section is effective January 1, 2016, for a new driver's 
81.23 	license, permit, or identification card, and a renewal issued on or after that date.

81.24 	Sec. 14. Minnesota Statutes 2014, section 171.06, subdivision 3, is amended to read:
81.25 		Subd. 3.Contents of Application; other information requirements. (a) An 
81.26 	application must:
81.27 	(1) state the full name, date of birth, sex, and either (i) the residence address of the 
81.28 	applicant, or (ii) designated address under section 5B.05;
81.29 	(2) as may be required by the commissioner, contain a description of the applicant 
81.30 	and any other facts pertaining to the applicant, the applicant's driving privileges, and the 
81.31 	applicant's ability to operate a motor vehicle with safety;
81.32 	(3) state:
81.33 	(i) the applicant's Social Security number; or
82.1 	(ii) if the applicant does not have a Social Security number and is applying for a 
82.2 	Minnesota identification card, instruction permit, or class D provisional or driver's license, 
82.3 	that the applicant certifies that the applicant does not have a Social Security number;
82.4 	(4) in the case of an application for an enhanced driver's license or enhanced 
82.5 	identification card, present:
82.6 	(i) proof satisfactory to the commissioner of the applicant's full legal name, United 
82.7 	States citizenship, identity, date of birth, Social Security number, and residence address; and
82.8 	(ii) a photographic identity document;
82.9 	(5) contain a space where the applicant may indicate a desire to make an anatomical 
82.10 	gift according to paragraph (b);
82.11 	(6) contain a notification to the applicant of the availability of a living will/health 
82.12 	care directive designation on the license under section 171.07, subdivision 7; and
82.13 	(7) contain a space where the applicant may request a veteran designation on the 
82.14 	license under section 171.07, subdivision 15, and the driving record under section 171.12, 
82.15 	subdivision 5a; and
82.16 	(8) contain a space where the applicant must attest to a residence address in 
82.17 	Minnesota.
82.18 	(b) If the applicant does not indicate a desire to make an anatomical gift when 
82.19 	the application is made, the applicant must be offered a donor document in accordance 
82.20 	with section 171.07, subdivision 5. The application must contain statements sufficient to 
82.21 	comply with the requirements of the Darlene Luther Revised Uniform Anatomical Gift 
82.22 	Act, chapter 525A, so that execution of the application or donor document will make 
82.23 	the anatomical gift as provided in section 171.07, subdivision 5, for those indicating a 
82.24 	desire to make an anatomical gift. The application must be accompanied by information 
82.25 	describing Minnesota laws regarding anatomical gifts and the need for and benefits of 
82.26 	anatomical gifts, and the legal implications of making an anatomical gift, including the 
82.27 	law governing revocation of anatomical gifts. The commissioner shall distribute a notice 
82.28 	that must accompany all applications for and renewals of a driver's license or Minnesota 
82.29 	identification card. The notice must be prepared in conjunction with a Minnesota organ 
82.30 	procurement organization that is certified by the federal Department of Health and Human 
82.31 	Services and must include:
82.32 	(1) a statement that provides a fair and reasonable description of the organ donation 
82.33 	process, the care of the donor body after death, and the importance of informing family 
82.34 	members of the donation decision; and
82.35 	(2) a telephone number in a certified Minnesota organ procurement organization that 
82.36 	may be called with respect to questions regarding anatomical gifts.
83.1 	(c) The application must be accompanied also by information containing relevant 
83.2 	facts relating to:
83.3 	(1) the effect of alcohol on driving ability;
83.4 	(2) the effect of mixing alcohol with drugs;
83.5 	(3) the laws of Minnesota relating to operation of a motor vehicle while under the 
83.6 	influence of alcohol or a controlled substance; and
83.7 	(4) the levels of alcohol-related fatalities and accidents in Minnesota and of arrests 
83.8 	for alcohol-related violations.
83.9 	(d) A government identification card is:
83.10 	(1) an acceptable form of proof of identity in application for a Minnesota 
83.11 	identification card, instruction permit, or driver's license; and
83.12 	(2) a primary document for purposes of Minnesota Rules, part 7410.0400.
83.13 	(e) For purposes of this section, "government identification card" means a valid, 
83.14 	unexpired passport issued by a country other than the United States with a certified birth 
83.15 	certificate from a country other than the United States, the District of Columbia, Guam, 
83.16 	Puerto Rico, or the United States Virgin Islands. A passport and birth certificate under this 
83.17 	paragraph must have security features that make the document as impervious to alteration 
83.18 	as is reasonably practicable in its design and quality of material and technology, using 
83.19 	materials that are not readily available to the general public. Any document not in English 
83.20 	must be accompanied by a qualified English translation.

83.21 	EFFECTIVE DATE. This section is effective January 1, 2016, for a new driver's 
83.22 	license, permit, or identification card, and a renewal issued on or after that date.

83.23 	Sec. 15. Minnesota Statutes 2014, section 171.07, subdivision 1, is amended to read:
83.24 		Subdivision 1.License; contents. (a) Upon the payment of the required fee, the 
83.25 	department shall issue to every qualifying applicant a license designating the type or 
83.26 	class of vehicles the applicant is authorized to drive as applied for. This license must 
83.27 	bear a distinguishing number assigned to the licensee; the licensee's full name and date 
83.28 	of birth; either (1) the licensee's residence address, or (2) the designated address under 
83.29 	section 5B.05; a description of the licensee in a manner as the commissioner deems 
83.30 	necessary; and the usual signature of the licensee. No license is valid unless it bears 
83.31 	the usual signature of the licensee. Every license must bear a colored photograph or an 
83.32 	electronically produced image of the licensee. A driving privilege license must be plainly 
83.33 	marked "FOR DRIVING ONLY."
83.34 	(b) If the United States Postal Service will not deliver mail to the applicant's 
83.35 	residence address as listed on the license, then the applicant shall provide verification from 
84.1 	the United States Postal Service that mail will not be delivered to the applicant's residence 
84.2 	address and that mail will be delivered to a specified alternate mailing address. When an 
84.3 	applicant provides an alternate mailing address under this subdivision, the commissioner 
84.4 	shall use the alternate mailing address in lieu of the applicant's residence address for 
84.5 	all notices and mailings to the applicant.
84.6 	(c) Every license issued to an applicant under the age of 21 must be of a 
84.7 	distinguishing color and plainly marked "Under-21."
84.8 	(d) The department shall use processes in issuing a license that prohibit, as nearly as 
84.9 	possible, the ability to alter or reproduce a license, or prohibit the ability to superimpose a 
84.10 	photograph or electronically produced image on a license, without ready detection.
84.11 	(e) A license issued to an applicant age 65 or over must be plainly marked "senior" if 
84.12 	requested by the applicant.

84.13 	EFFECTIVE DATE. This section is effective January 1, 2016, for a new driver's 
84.14 	license, permit, or identification card, and a renewal issued on or after that date.

84.15 	Sec. 16. [174.38] ACTIVE TRANSPORTATION PROGRAMS.
84.16 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
84.17 	have the meanings given them.
84.18 	(b) "Administering authority" or "authority" means the commissioner of 
84.19 	transportation, the joint powers board under section 297A.992, or the council, as 
84.20 	appropriate.
84.21 	(c) "Bond-eligible cost" means:
84.22 	(1) expenditures under this section for acquisition of land or permanent easements, 
84.23 	predesign, design, preliminary and final engineering, environmental analysis, construction, 
84.24 	and reconstruction of publicly owned infrastructure in this state with a useful life of at 
84.25 	least ten years that provides for nonmotorized transportation;
84.26 	(2) preparation of land for which a nonmotorized transportation route is established, 
84.27 	including demolition of structures and remediation of any hazardous conditions on the 
84.28 	land; and
84.29 	(3) the unpaid principal on debt issued by a political subdivision for a nonmotorized 
84.30 	transportation project.
84.31 	(d) "Council" means the Metropolitan Council, as defined under section 473.121, 
84.32 	subdivision 3.
84.33 		Subd. 2.Programs established. (a) Upon availability of funds specifically provided 
84.34 	to an administering authority for purposes of this section, the authority shall establish a 
85.1 	program to support bicycling, pedestrian activities, and other forms of nonmotorized 
85.2 	transportation as provided in this section.
85.3 	(b) Subject to the requirements of this section, the authority may provide grants 
85.4 	or other financial assistance for a project.
85.5 		Subd. 3.Active transportation accounts. (a) An active transportation account 
85.6 	is established in the bond proceeds fund. The account consists of state bond proceeds 
85.7 	appropriated to the commissioner or the council. Money in the account may only be 
85.8 	expended on bond-eligible costs of a project receiving financial assistance under this 
85.9 	section. All uses of funds from the account must be for publicly owned property.
85.10 	(b) A greater Minnesota active transportation account is established in the special 
85.11 	revenue fund. The account consists of funds as provided by law, and any other money 
85.12 	donated, allotted, transferred, or otherwise provided to the account. Money in the account 
85.13 	may only be expended on a project that is primarily located outside of the metropolitan 
85.14 	transit improvement area, as defined in section 297A.9925, subdivision 1, and receiving 
85.15 	financial assistance as provided under this section.
85.16 	(c) A metropolitan area active transportation account is established in the special 
85.17 	revenue fund. The account consists of funds as provided by law, and any other money 
85.18 	donated, allotted, transferred, or otherwise provided to the account. Money in the account 
85.19 	may only be expended on a project that is primarily located within the metropolitan transit 
85.20 	improvement area, as defined in section 297A.9925, subdivision 1, and receiving financial 
85.21 	assistance as provided under this section.
85.22 		Subd. 4.Program administration. (a) The authority shall establish program 
85.23 	requirements, including:
85.24 	(1) eligibility for assistance, subject to the requirements under paragraph (b);
85.25 	(2) a process for solicitation and application that minimizes applicant burdens; and
85.26 	(3) procedures for award and payment of financial assistance.
85.27 	(b) Eligible recipients of financial assistance under this section are:
85.28 	(1) a political subdivision; and
85.29 	(2) a tax-exempt organization under section 501(c)(3) of the Internal Revenue 
85.30 	Code, as amended.
85.31 	(c) The authority shall make reasonable efforts to publicize each solicitation 
85.32 	for applications among all eligible recipients, and provide assistance in creating and 
85.33 	submitting applications.
85.34 	(d) The authority may expend no more than one percent of available funds in a fiscal 
85.35 	year under this section on program administration.
86.1 		Subd. 5.State general obligation bond funds. The legislature determines that 
86.2 	many nonmotorized transportation infrastructure projects will constitute betterments and 
86.3 	capital improvements within the meaning of Minnesota Constitution, article XI, section 5, 
86.4 	paragraph (a), and capital expenditures under generally accepted accounting principles, 
86.5 	and will be financed more efficiently and economically under this section than by direct 
86.6 	appropriations for specific projects.
86.7 		Subd. 6.Use of funds. (a) For a project funded through state bond proceeds under 
86.8 	this section, financial assistance is limited solely to bond-eligible costs.
86.9 	(b) Subject to paragraph (a), the authority shall determine permissible uses of 
86.10 	financial assistance under this section, which must include:
86.11 	(1) construction and maintenance of bicycle, trail, and pedestrian infrastructure, 
86.12 	including but not limited to bicycle facilities and centers, and safe routes to school 
86.13 	infrastructure; and
86.14 	(2) noninfrastructure programming, including activities as specified in section 
86.15 	174.40, subdivision 7a, paragraph (b).
86.16 		Subd. 7.Project evaluation and selection. The authority shall establish a project 
86.17 	evaluation and selection process under this section that is competitive, criteria-based, and 
86.18 	objective. The process must include criteria and prioritization of projects based on:
86.19 	(1) inclusion of the project in a municipal or regional nonmotorized transportation 
86.20 	system plan;
86.21 	(2) location of the project in a jurisdiction in which a complete streets policy, as 
86.22 	provided under section 174.75, is in effect;
86.23 	(3) the extent to which the project supports development of continuous and 
86.24 	convenient safe routes to school;
86.25 	(4) the extent to which the project supports development of routes to and connections 
86.26 	with educational facilities, centers of employment, governmental services, health care 
86.27 	facilities, food sources, transit facilities, and other community destinations;
86.28 	(5) general benefits to public health and safety as a result of the project; and
86.29 	(6) geographic equity in project benefits, as well as benefits in areas or locations 
86.30 	experiencing high rates of pedestrian or bicycle collisions, high rates of health disparities, 
86.31 	and high concentration of poverty.
86.32 		Subd. 8.Grant cancellation. If, five years after execution of a grant agreement, 
86.33 	the authority determines that the grantee has not proceeded in a timely manner with 
86.34 	implementation of the project funded, the commissioner must cancel the grant and 
86.35 	the grantee must repay to the commissioner all grant money paid to the grantee for 
86.36 	deposit in the active transportation account from which the grant was originally paid. 
87.1 	Section 16A.642 applies to any appropriations made from the bond proceeds fund to the 
87.2 	commissioner under this section that have not been awarded as financial assistance.

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

87.4 	Sec. 17. Minnesota Statutes 2014, section 174.42, is amended by adding a subdivision 
87.5 	to read:
87.6 		Subd. 3.Funding requirement for greater Minnesota.  In each federal fiscal year, 
87.7 	the commissioner shall spend out of National Highway Performance Program funds a total 
87.8 	amount in federal transportation funds for an active transportation competitive grant 
87.9 	program in greater Minnesota that totals a minimum of $16,000,000 in excess of the 
87.10 	average annual spending on greater Minnesota transportation alternatives projects under 
87.11 	section 174.38 in federal fiscal years between October 2009 and September 2012. National 
87.12 	Highway Performance Program funds may be converted to Surface Transportation 
87.13 	Program funds or Transportation Alternative Program funds to fulfill the requirements 
87.14 	of this section. This requirement must not reduce the amount of federal transportation 
87.15 	funding for metropolitan projects.

87.16 	EFFECTIVE DATE. This section is effective October 1, 2015.

87.17 	Sec. 18. Minnesota Statutes 2014, section 174.50, is amended by adding a subdivision 
87.18 	to read:
87.19 		Subd. 6d.Major local bridges account. The major local bridges account is created 
87.20 	in the Minnesota state transportation fund for money appropriated, allocated, or transferred 
87.21 	into the account to fund major local bridge projects. For purposes of this subdivision, a 
87.22 	major local bridge project is a project that carries a total cost in excess of $30,000,000.

87.23 	Sec. 19. [219.016] RAILROAD COMPANY ASSESSMENT; ACCOUNT; 
87.24 	APPROPRIATION.
87.25 	(a) As provided in this section, the commissioner shall annually assess railroad 
87.26 	companies that are (1) defined as common carriers under section 218.011; (2) classified by 
87.27 	federal law or regulation as Class I Railroads or Class I Rail Carriers; and (3) operating in 
87.28 	this state. The total assessment amount may not exceed $32,500,000 annually.
87.29 	(b) The assessment must be by a division of the annual appropriation to the grade 
87.30 	crossing safety improvement account in equal proportion between carriers based on route 
87.31 	miles operated in Minnesota, assessed in equal amounts for 365 days of the calendar year.
88.1 	(c) The assessments must be deposited in the rail grade crossing safety improvement 
88.2 	account, which is created in the special revenue fund. Money in the account is 
88.3 	appropriated to the commissioner for the creation of a rail safety office within the 
88.4 	Department of Transportation, not to exceed $1,400,000 in each year; the development, 
88.5 	administration, and construction of highway-rail grade crossing improvements on rail 
88.6 	corridors transporting crude oil; and other selected routes, including those carrying 
88.7 	hazardous materials. Improvements may include upgrades to existing protection systems, 
88.8 	the closing of crossings and necessary roadwork, and reconstruction of at-grade crossings 
88.9 	to full grade separations. Funds in the account are available until expended.

88.10 	Sec. 20. Minnesota Statutes 2014, section 222.50, subdivision 7, is amended to read:
88.11 		Subd. 7.Expenditures. (a) The commissioner may expend money from the rail 
88.12 	service improvement account for the following purposes:
88.13 	(1) to make transfers as provided under section 222.57 or to pay interest adjustments 
88.14 	on loans guaranteed under the state rail user and rail carrier loan guarantee program;
88.15 	(2) to pay a portion of the costs of capital improvement projects designed to improve 
88.16 	rail service of a rail user or a rail carrier;
88.17 	(3) to pay a portion of the costs of rehabilitation projects designed to improve rail 
88.18 	service of a rail user or a rail carrier;
88.19 	(4) to acquire, maintain, manage, and dispose of railroad right-of-way pursuant to 
88.20 	the state rail bank program;
88.21 	(5) to provide for aerial photography survey of proposed and abandoned railroad 
88.22 	tracks for the purpose of recording and reestablishing by analytical triangulation the 
88.23 	existing alignment of the inplace track;
88.24 	(6) to pay a portion of the costs of acquiring a rail line by a regional railroad 
88.25 	authority established pursuant to chapter 398A;
88.26 	(7) to pay the state matching portion of federal grants for rail-highway grade 
88.27 	crossing improvement projects;
88.28 	(8) for expenditures made before July 1, 2017, to pay the state matching portion 
88.29 	of grants under the federal Transportation Investment Generating Economic Recovery 
88.30 	(TIGER) program of the United States Department of Transportation; and
88.31 	(9) to fund rail planning studies; and
88.32 	(10) to pay a portion of the costs of capital improvement projects designed to 
88.33 	improve capacity or safety at rail yards.
89.1 	(b) All money derived by the commissioner from the disposition of railroad 
89.2 	right-of-way or of any other property acquired pursuant to sections 222.46 to 222.62 shall 
89.3 	be deposited in the rail service improvement account.

89.4 	Sec. 21. Minnesota Statutes 2014, section 360.305, subdivision 4, is amended to read:
89.5 		Subd. 4.Costs allocated; local contribution; hangar construction account. (a) 
89.6 	Except as otherwise provided in this subdivision Annually by June 1, the commissioner 
89.7 	of transportation shall require as a condition of assistance by the state that the establish 
89.8 	local contribution rates which will apply to a political subdivision, municipality, or public 
89.9 	corporation make a substantial contribution to the cost of the construction, improvement, 
89.10 	maintenance, or operation of the airport, in connection with which the assistance of the 
89.11 	state is sought. These costs are referred to as project costs when applying for state or 
89.12 	federal funding assistance to construct, improve, maintain, or operate an airport, or to 
89.13 	acquire land for airport facilities or clear zones. If the commissioner does not establish 
89.14 	local contribution rates by June 1, the previous rates apply.
89.15 	(b) For any airport, whether key, intermediate, or landing strip, where only state and 
89.16 	local funds are to be used, the contribution shall be not less than one-fifth of the sum of:
89.17 	(1) the project costs;
89.18 	(2) acquisition costs of the land and clear zones, which are referred to as acquisition 
89.19 	costs. The commissioner may pay all costs beyond the local contribution. Local 
89.20 	contribution rates shall not be less than five percent of the total cost of the activity or 
89.21 	acquisition, except that the commissioner may require less than five percent for research 
89.22 	projects, radio or navigational aids, activities, or acquisitions for which federal funds are 
89.23 	available to cover more than 90 percent of the total cost, or as otherwise necessary to 
89.24 	respond to an emergency.
89.25 	(c) For any airport where federal, state, and local funds are to be used, the 
89.26 	contribution shall not be less than five percent of the sum of the project costs and 
89.27 	acquisition costs. The commissioner's establishment of local contribution rates is not 
89.28 	subject to the rulemaking requirements of chapter 14.
89.29 	(d) The commissioner may pay the total cost of radio and navigational aids.
89.30 	(e) Notwithstanding paragraph (b) or (c), the commissioner may pay all of the 
89.31 	project costs of a new landing strip, but not an intermediate airport or key airport, or may 
89.32 	pay an amount equal to the federal funds granted and used for a new landing strip plus 
89.33 	all of the remaining project costs; but the total amount paid by the commissioner for the 
89.34 	project costs of a new landing strip, unless specifically authorized by an act appropriating 
89.35 	funds for the new landing strip, shall not exceed $200,000.
90.1 	(f) Notwithstanding paragraph (b) or (c), the commissioner may pay all the project 
90.2 	costs for research and development projects, including, but not limited to noise abatement; 
90.3 	provided that in no event shall the sums expended under this paragraph exceed five 
90.4 	percent of the amount appropriated for construction grants.
90.5 	(g) (d) To receive aid under this section for project costs or for acquisition costs, the 
90.6 	municipality must enter into an agreement with the commissioner giving assurance that 
90.7 	the airport will be operated and maintained in a safe, serviceable manner for aeronautical 
90.8 	purposes only for the use and benefit of the public:
90.9 	(1) for 20 years after the date thatthe municipality receives any state funds for 
90.10 	project construction or improvement costs are received by the municipality; and
90.11 	(2) for 99 years after the date thatthe municipality receives any state funds for land 
90.12 	acquisition costs are received by the municipality. If any land acquired with state funds 
90.13 	ceases to be used for aviation purposes, the municipality shall repay the state airports fund 
90.14 	the same percentage of the appraised value of the property as that percentage of the costs 
90.15 	of acquisition and participation provided by the state to acquire the land.
90.16 	The agreement may contain other conditions as the commissioner deems reasonable.
90.17 	(h) (e) The commissioner shall establish a hangar construction revolving account, 
90.18 	which shall be used for the purpose of financing the construction of hangar buildings to 
90.19 	be constructed by municipalities owning airports. All municipalities owning airports are 
90.20 	authorized to enter into contracts for the construction of hangars, and contracts with 
90.21 	the commissioner for the financing of hangar construction for an amount and period of 
90.22 	time as may be determined by the commissioner and municipality. All receipts from the 
90.23 	financing contracts shall be deposited in the hangar construction revolving account and 
90.24 	are reappropriated for the purpose of financing construction of hangar buildings. The 
90.25 	commissioner may pay from the hangar construction revolving account 80 percent of the 
90.26 	cost of financing construction of hangar buildings. For purposes of this paragraph, the 
90.27 	construction of hangars shall include their design. The commissioner shall transfer up to 
90.28 	$4,400,000 from the state airports fund to the hangar construction revolving account.
90.29 	(i) (f) The commissioner may pay a portion of the purchase price of any contribute 
90.30 	to costs incurred by any municipality for airport maintenance and operations, safety 
90.31 	equipment, and of the actual airport snow removal costs incurred by any municipality. 
90.32 	The portion to be paid by the state shall not exceed two-thirds of the cost of the purchase 
90.33 	price or snow removal. To receive aid a municipality must enter into an agreement of the 
90.34 	type referred to in paragraph (g).
90.35 	(j) (g) This subdivision applies only to project costs or acquisition costs of 
90.36 	municipally owned airports incurred after June 1, 1971.

91.1 	Sec. 22. Laws 2015, chapter 2, section 3, is amended to read:
91.2 	Sec. 3. DEPARTMENT OF TRANSPORTATION; APPROPRIATION.
 91.3 	$3,000,000 is appropriated from the general fund to the commissioner of 
91.4 	transportation in fiscal year 2015 to provide the 20 percent local match funding required 
91.5 	to obtain Federal Highway Administration emergency relief funds to repair local roads 
91.6 	and bridges damaged by flooding in June 2014. This is a onetime appropriation and 
91.7 	is available until June 30, 2017.

91.8 	Sec. 23. COMMUTER RAIL TRANSIT FEASIBILITY STUDY.
 91.9 		Subdivision 1.Scope of study. The Metropolitan Council shall conduct a study of 
91.10 	the feasibility of the use of commuter rail transit in a corridor aligned on marked Interstate 
91.11 	Highway 394 or between marked Interstate Highway 394 and marked Trunk Highway 
91.12 	55, from downtown Minneapolis to Ridgedale Drive in Minnetonka, with the alternative 
91.13 	of extending to Wayzata. The study must include consideration of the feasibility of 
91.14 	connecting the Southwest Light Rail Transit Corridor with the Interstate Highway 394 
91.15 	Corridor between downtown Minneapolis and a point of divergence west of downtown. 
91.16 	The Metropolitan Council may hire a consultant to assist in the study and report under 
91.17 	subdivision 3.
91.18 		Subd. 2.Elements of study. The commuter rail transit feasibility study must 
91.19 	include, without limitation:
91.20 	(1) an identification of major operational characteristics of commuter rail transit 
91.21 	in the corridor;
91.22 	(2) a quantification of capital and operating costs;
91.23 	(3) an evaluation of the interface of a rail transit system with other transportation 
91.24 	systems in the corridor;
91.25 	(4) an evaluation of the impact of a rail transit system on land use and urban 
91.26 	development;
91.27 	(5) an estimate of the cost and impact of necessary associated exercise of eminent 
91.28 	domain;
91.29 	(6) an evaluation of the impact of a rail transit system on energy and the environment;
91.30 	(7) an estimate of ridership potential;
91.31 	(8) a cost-benefit analysis that compares the total cost of the project with the benefits 
91.32 	of a commuter rail transit line to its users, other users of the highway, and adjacent 
91.33 	property owners;
91.34 	(9) an identification of potential sources of federal, state, local, private, and other 
91.35 	funds;
92.1 	(10) an identification of the conditions necessary for commuter rail transit to be 
92.2 	feasible in the Interstate Highway 394 Corridor; and
92.3 	(11) an evaluation of the feasibility of connecting the Southwest Light Rail Transit 
92.4 	Corridor with the Interstate Highway 394 Corridor between downtown Minneapolis and 
92.5 	a point of divergence west of downtown.
92.6 		Subd. 3.Report. The Metropolitan Council shall prepare a written report of this 
92.7 	study and submit it no later than December 15, 2015, to the legislature, in compliance 
92.8 	with Minnesota Statutes, sections 3.195 and 3.197, and to the chairs and ranking minority 
92.9 	members of the senate and house of representatives committees with jurisdiction over 
92.10 	transportation.

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

92.12 	Sec. 24. ENVIRONMENTAL IMPACT STATEMENT; CERTAIN TRACK 
92.13 	CONNECTION PROJECTS.
 92.14 		Subdivision 1.Definition. For purposes of this section, "track connection project" 
92.15 	means a rail construction project that:
92.16 	(1) is in a county within which there is located a city of the first class, as provided in 
92.17 	Minnesota Statutes, section 410.01;
92.18 	(2) is located at or near the site of two intersecting tracks of rail; and
92.19 	(3) establishes switches, turnouts, or other forms of connecting track between 
92.20 	the two intersecting tracks, in which (i) the tracks are owned by two different railroad 
92.21 	companies, and (ii) the project provides for alternative routing of unit trains, as defined 
92.22 	in Minnesota Statutes, section 115E.01, subdivision 11d, transported as of the effective 
92.23 	date of this section on either of the intersecting tracks through a city of the first class 
92.24 	identified in clause (1).
92.25 		Subd. 2.Environmental impact statement. An environmental impact statement 
92.26 	must be conducted under Minnesota Statutes, section 116D.04, and applicable 
92.27 	Environmental Quality Board rules governing track connection projects, to make a 
92.28 	determination concerning the existence of a local safety or security hazard under 
92.29 	applicable federal law. The Department of Transportation shall serve as the responsible 
92.30 	governmental unit for the environmental impact statement. A track connection project 
92.31 	may not begin construction and no final governmental decision may be made to grant a 
92.32 	permit, approve the project, or begin the project until the commissioner of transportation 
92.33 	has determined the environmental impact statement is adequate.

93.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
93.2 	and expires December 31, 2018.

93.3 	Sec. 25. ELECTION JUDGE TRAINING.
 93.4 	The secretary of state shall inform each county auditor that a driving privilege 
93.5 	license as defined in Minnesota Statutes, section 171.01, subdivision 31c, must not be used 
93.6 	or accepted for voter registration purposes under Minnesota Statutes, section 201.061. 
93.7 	Each county auditor must inform all election officials and election judges hired for an 
93.8 	election that a driving privilege license must not be used or accepted for voter registration 
93.9 	purposes under Minnesota Statutes, section 201.061. County auditors and municipal 
93.10 	clerks must include this information in all election judge training courses.

93.11 	Sec. 26. PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.
 93.12 		Subdivision 1.Public-private partnership initiatives. (a) The commissioner 
93.13 	of transportation and Metropolitan Council are authorized to consider and utilize 
93.14 	public-private partnership procurement methods for up to three pilot projects as provided 
93.15 	in this section. Utilization of public-private partnerships is a recognition of the importance 
93.16 	to the state of an efficient and safe transportation system, and the necessity of developing 
93.17 	alternative funding sources to supplement traditional sources of transportation revenues. 
93.18 	A public-private partnership initiative must take advantage of the expertise and experience 
93.19 	of public employees and private sector efficiencies in design and construction, along with 
93.20 	expertise in finance and development, and provide a better long-term value for the state 
93.21 	than could be obtained through traditional procurement methods.
93.22 	(b) Notwithstanding Minnesota Statutes, section 160.98, or any other law to the 
93.23 	contrary, the commissioner or council may consider for use in the pilot program any 
93.24 	existing public-private partnership mechanism or any proposed mechanism that proves the 
93.25 	best available option for the state. Mechanisms the commissioner or council may consider 
93.26 	include, but are not limited to, toll facilities, BOT facilities, BTO facilities, user fees, 
93.27 	construction payments, joint development agreements, negotiated exactions, air rights 
93.28 	development, street improvement districts, or tax increment financing districts for transit. 
93.29 	For the purposes this section, toll facilities, BOT facilities, and BTO facilities have the 
93.30 	meanings given under Minnesota Statutes, section 160.84.
93.31 	(c) As part of the pilot program, the commissioner and council are directed to form 
93.32 	an independent advisory and oversight office, the Joint Program Office for Economic 
93.33 	Development and Alternative Finance. The office shall consist of the commissioner of 
93.34 	management and budget, the commissioner of employment and economic development, 
94.1 	the commissioner of administration, the commissioner of transportation, the Metropolitan 
94.2 	Council, and one representative each from the American Council of Engineering 
94.3 	Companies - Minnesota chapter, the Central Minnesota Transportation Alliance, the 
94.4 	Counties Transit Improvement Board, and the Minnesota County Engineers Association. 
94.5 	In addition, the commissioner and Metropolitan Council shall invite the Federal Highway 
94.6 	Administration and the Federal Transit Administration to participate in the office's 
94.7 	activities. The office's duties shall include, but are not limited to, reviewing and approving 
94.8 	projects proposed under this section, reviewing any contractual or financial agreements 
94.9 	to ensure program requirements are met, and ensuring that any proposed or executed 
94.10 	agreement serves the public interest.
94.11 		Subd. 2.Pilot program restrictions and project selection. (a) The commissioner 
94.12 	or council may receive or solicit and evaluate proposals to build, operate, and finance 
94.13 	projects that are not inconsistent with the commissioner's most recent statewide 
94.14 	transportation plan or the council's most recent transportation policy plan. If the 
94.15 	department or council receives an unsolicited proposal, the department or council shall 
94.16 	publish a notice in the State Register at least once a week for two weeks stating that the 
94.17 	department or council has received the proposal and will accept, for 120 days after the 
94.18 	initial date of publication, other proposals for the same project purpose. The private 
94.19 	proposer must be selected on a competitive basis.
94.20 	(b) When entering into a public-private partnership, the commissioner or 
94.21 	Metropolitan Council may not enter into any noncompete agreement that inhibits the 
94.22 	state's ability to address ongoing or future infrastructure needs.
94.23 	(c) If the commissioner or council enters into a public-private partnership agreement 
94.24 	that includes a temporary transfer of ownership or control of a road, bridge, or other 
94.25 	infrastructure investment to the private entity, the agreement must include a provision 
94.26 	requiring the return of the road, bridge, or other infrastructure investment to the state 
94.27 	after a specified period of time.
94.28 	(d) The commissioner and council may only consider new projects for a 
94.29 	public-private partnership. The commissioner and council are prohibited from considering 
94.30 	projects involving existing infrastructure for a public-private partnership, unless the 
94.31 	proposed project adds capacity to the existing infrastructure.
94.32 		Subd. 3.Evaluation and selection of private entity and project. (a) The 
94.33 	commissioner and council shall contract with one or more consultants to assist in proposal 
94.34 	evaluation. The consultant must possess expertise and experience in public-private 
94.35 	partnership project evaluation methodology, such as value for money, costs of 
95.1 	public-private partnership compared with costs of public project delivery, and cost-benefit 
95.2 	analysis.
95.3 	(b) When soliciting, evaluating, and selecting a private entity with which to enter 
95.4 	into a public-private partnership and before selecting a project, the commissioner or 
95.5 	council must consider:
95.6 	(1) the ability of the proposed project to improve safety, reduce congestion, increase 
95.7 	capacity, and promote economic growth;
95.8 	(2) the proposed cost of and financial plan for the project;
95.9 	(3) the general reputation, qualifications, industry experience, and financial capacity 
95.10 	of the private entity;
95.11 	(4) the project's proposed design, operation, and feasibility;
95.12 	(5) length and extent of transportation and transit service disruption;
95.13 	(6) comments from local citizens and affected jurisdictions;
95.14 	(7) benefits to the public;
95.15 	(8) the safety record of the private entity; and
95.16 	(9) any other criteria the commissioner or council deems appropriate.
95.17 	(c) The independent advisory and oversight office established under subdivision 1, 
95.18 	paragraph (c), shall, in collaboration with authorized representatives of Department of 
95.19 	Transportation workers, review proposals evaluated by the commissioner or council to 
95.20 	ensure the requirements of this section are being met. The independent advisory and 
95.21 	oversight office shall first determine whether the project, as proposed, serves the public 
95.22 	interest. In making this determination, the office must identify and consider advantages 
95.23 	and disadvantages for various stakeholders, including taxpayers, workers, transportation 
95.24 	and transit providers and operators, transportation and transit users, commercial vehicle 
95.25 	operators, and the general public, including the impact on the state's economy. If the 
95.26 	proposed project serves the public interest, the office must evaluate the proposals 
95.27 	according to the criteria specified in this section.
95.28 		Subd. 4.Public-private agreement. (a) A public-private agreement between the 
95.29 	commissioner or the council and a private entity shall, at a minimum, specify:
95.30 	(1) the planning, acquisition, financing, development, design, construction, 
95.31 	reconstruction, replacement, improvement, maintenance, management, repair, leasing, or 
95.32 	operation of the project;
95.33 	(2) the term of the public-private agreement;
95.34 	(3) the type of property interest, if any, that the private entity will have in the project;
95.35 	(4) a description of the actions the commissioner or council may take to ensure 
95.36 	proper maintenance of the project; 
96.1 	(5) whether user fees will be collected on the project and the basis by which the user 
96.2 	fees shall be determined and modified along with identification of the public agency that 
96.3 	will determine and modify fees;
96.4 	(6) compliance with applicable federal, state, and local laws;
96.5 	(7) grounds for termination of the public-private agreement by the commissioner 
96.6 	or council;
96.7 	(8) adequate safeguards for the traveling public and residents of the state in event of 
96.8 	default on the contract;
96.9 	(9) the extent and nature of involvement of public employees in the proposed project; 
96.10 	(10) financial protection for the state in the event of default, which must include 
96.11 	payment and performance bonds, for any construction, that meet the requirements under 
96.12 	Minnesota Statutes, sections 574.26 to 574.32; and
96.13 	(11) procedures for amendment of the agreement.
96.14 	(b) A public-private agreement between the commissioner or council and a private 
96.15 	entity may provide for:
96.16 	(1) review and approval by the commissioner or council of the private entity's plans 
96.17 	for the development and operation of the project;
96.18 	(2) inspection by the commissioner or council of construction and improvements 
96.19 	to the project;
96.20 	(3) maintenance by the private entity of a liability insurance policy;
96.21 	(4) filing of appropriate financial statements by the private entity on a periodic basis;
96.22 	(5) filing of traffic reports by the private entity on a periodic basis;
96.23 	(6) financing obligations of the commissioner or council and the private entity;
96.24 	(7) apportionment of expenses between the commissioner or council and the private 
96.25 	entity;
96.26 	(8) the rights and remedies available in the event of a default or delay;
96.27 	(9) the rights and duties of the private entity, the commissioner or council, and other 
96.28 	state or local governmental entities with respect to the use of the project;
96.29 	(10) the terms and conditions of indemnification of the private entity by the 
96.30 	commissioner or council;
96.31 	(11) assignment, subcontracting, or other delegations of responsibilities of (i) 
96.32 	the private entity, or (ii) the commissioner or council under agreement to third parties, 
96.33 	including other private entities or state agencies;
96.34 	(12) if applicable, sale or lease to the private entity of private property related to 
96.35 	the project;
96.36 	(13) traffic enforcement and other policing issues; and
97.1 	(14) any other terms and conditions the commissioner or council deems appropriate.
97.2 	(c) The independent advisory and oversight office established under subdivision 
97.3 	1, paragraph (c), shall review any proposed contractual agreement prior to execution 
97.4 	in order to ensure that the contract serves the public interest and the requirements of 
97.5 	this section are met.
97.6 		Subd. 5.Funding from federal government. (a) The commissioner or council may 
97.7 	accept from the United States or any of its agencies funds that are available to the state 
97.8 	for carrying out the pilot program, whether the funds are available by grant, loan, or 
97.9 	other financial assistance.
97.10 	(b) The commissioner or council may enter into agreements or other arrangements 
97.11 	with the United States or any of its agencies as necessary for carrying out the pilot program.
97.12 	(c) The commissioner or council shall seek to maximize project funding from 
97.13 	nonstate sources and may combine federal, state, local, and private funds to finance a 
97.14 	public-private partnership pilot project.
97.15 		Subd. 6.Reporting. By August 1, 2016, and annually by August 1 thereafter, the 
97.16 	commissioner and council shall submit to the chairs and ranking minority members of the 
97.17 	house of representatives and senate committees having jurisdiction over transportation 
97.18 	policy and finance a list of all agreements executed under the pilot program authority. The 
97.19 	list must identify each agreement, the contracting entities, contract amount and duration, 
97.20 	any repayment requirements, and provide an update on the project's progress. The list 
97.21 	may be submitted electronically and is subject to Minnesota Statutes, section 3.195, 
97.22 	subdivision 1.

97.23 	EFFECTIVE DATE. This section is effective July 1, 2016.

97.24 	Sec. 27. TRANSPORTATION PROJECT SELECTION PROCESS.
 97.25 		Subdivision 1.Adoption of process and public input. The commissioner of 
97.26 	transportation shall, after consultation with metropolitan planning organizations, regional 
97.27 	development commissions, area transportation partnerships, local governments, and the 
97.28 	Metropolitan Council, draft a proposed transportation project data-driven evaluation 
97.29 	process to provide an objective and consistent analysis to assist in developing the 
97.30 	statewide transportation plan and prioritization of highway construction, reconstruction, 
97.31 	and improvement projects in the state transportation improvement program. No later than 
97.32 	September 1, 2015, the proposed process must be reported to the chairs and ranking 
97.33 	minority members of the senate and house of representatives committees on transportation 
97.34 	policy and finance and publicized, along with a schedule for public hearings and additional 
97.35 	opportunities for public input electronically and at locations throughout the state. No later 
98.1 	than January 10, 2016, after public comment has been heard and incorporated into the 
98.2 	proposed evaluation process, the commissioner shall adopt a final process for use in 
98.3 	highway project investment decisions on and after March 1, 2016.
98.4 		Subd. 2.Factors in analysis. The process must be based on objective, consistent, 
98.5 	and quantifiable analysis. Factors in the analysis must include return on investment, 
98.6 	benefit-cost, local rankings, safety, congestion mitigation, economic development, 
98.7 	accessibility, environmental quality, regional and metropolitan-rural balance, and land 
98.8 	use. The process may assign different weights to factors in evaluating projects on the 
98.9 	trunk highway system, the county state-aid highway system, and the municipal state-aid 
98.10 	street system.
98.11 		Subd. 3.Exemptions. A proposed project is exempt from the process if it is:
98.12 	(1) funded by a grant from:
98.13 	(i) the corridors of commerce program under Minnesota Statutes, section 161.088;
98.14 	(ii) the transportation economic development program under Minnesota Statutes, 
98.15 	section 174.12; and
98.16 	(iii) the joint powers board under Minnesota Statutes, section 297A.992, subdivision 
98.17 	6; or 
98.18 	(2) preservation, maintenance, capital preventive treatment or safety project that 
98.19 	does not increase capacity of the infrastructure, or if subjecting it to the evaluation process 
98.20 	would result in a loss of federal funds.
98.21 		Subd. 4.Information on department's Web site. For each proposed project 
98.22 	evaluated under this process, the applicable scoring process, the score for each factor, 
98.23 	and the overall score are public information and must be publicized on the department's 
98.24 	Web site.

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

98.26 	Sec. 28. ESTABLISHMENT OF ROAD-USER CHARGE WORKING GROUP.
 98.27 		Subdivision 1.Road-user charge. The road-user charge working group is 
98.28 	established to study and report to the legislature concerning issues related to designing 
98.29 	and implementing a road-user charge in this state. The road-user charge working group 
98.30 	consists of 15 members, as follows:
98.31 	(1) the chairs and ranking minority members of the house of representatives and 
98.32 	senate committees or divisions with jurisdiction over transportation policy and finance;
98.33 	(2) the commissioner of transportation or a designee; and
98.34 	(3) public members who have relevant expertise and interest, including members or 
98.35 	representatives of transportation user groups; the telecommunications industry; the data 
99.1 	security and privacy industry; privacy rights advocacy groups; and research and policy 
99.2 	making bodies. Of these members, five must be appointed by the speaker of the house, 
99.3 	and five must be appointed by the majority leader of the senate.
99.4 		Subd. 2.Duties of road-user charge working group. The working group shall 
99.5 	identify and consider policy and technical issues related to funding state transportation 
99.6 	infrastructure through implementation of a road-user charge as an alternative to the motor 
99.7 	fuels tax. The working group shall study and make recommendations concerning cost, 
99.8 	privacy, jurisdictional issues, feasibility, complexity, public acceptance, use of revenues, 
99.9 	possible constitutional dedication, security, compliance, data collection technology that 
99.10 	includes privacy and user options, implementation, and related issues. In addition, the 
99.11 	working group shall seek and facilitate collaboration with other states; review pilot project 
99.12 	and implementation results from other states and countries; and explore federal funding 
99.13 	opportunities.
99.14 		Subd. 3.Report of working group. By January 15, 2017, the working group shall 
99.15 	submit a report to the chairs of the committees in the senate and house of representatives 
99.16 	with primary jurisdiction over transportation policy and transportation finance. The report 
99.17 	must state findings and recommendations concerning a road-user charge. The report may 
99.18 	recommend the development by the commissioner of transportation of an implementation 
99.19 	plan that may:
99.20 	(1) identify a project implementation timeline, which may include pilot programs, 
99.21 	limited initial deployment, multiple fee structure options for road users, and phased 
99.22 	implementation;
99.23 	(2) identify a fee structure, which must include distance traveled and may include 
99.24 	additional factors such as vehicle weight, vehicle impact on roadways, fuel type, and 
99.25 	vehicle type;
99.26 	(3) include a fiscal analysis that identifies costs, revenue projections, and any 
99.27 	associated tax rate changes;
99.28 	(4) establish a technological and operational architecture for the system;
99.29 	(5) address program and system administration, including but not limited to data 
99.30 	privacy, data integrity, and accuracy of information; and
99.31 	(6) be based in surface transportation finance principles, including:
99.32 	(i) efficiency, including impacts on road system use and land use;
99.33 	(ii) equity across road system users and vehicles, including (A) user payment 
99.34 	relative to user costs imposed; (B) the distribution of the burden of a fee structure that 
99.35 	includes the factors required under Minnesota Statutes, section 270C.13, subdivision 1, 
100.1 	clauses (1) to (3); and (C) identification of and possible fiscal offsets for any disparate 
100.2 	impact on users based on geographic location of their residency;
100.3 	(iii) revenue adequacy and long-term suitability of funding after complete 
100.4 	implementation;
100.5 	(iv) environmental impacts and sustainability;
100.6 	(v) administrative and technical feasibility, including data privacy and protection;
100.7 	(vi) transparency; and
100.8 	(vii) accountability.
100.9 		Subd. 4.Administrative provisions. (a) The commissioner of transportation or 
100.10 	the commissioner's designee shall convene the initial meeting of the working group no 
100.11 	later than September 1, 2015. Upon request of the working group, the commissioner shall 
100.12 	provide meeting space and administrative services for the group. The members of the 
100.13 	working group shall elect a chair or cochairs from the members of the working group at 
100.14 	the initial meeting.
100.15 	(b) Public members of the working group serve without compensation or payment of 
100.16 	expenses.
100.17 	(c) The working group expires May 1, 2017, or upon submission of the report 
100.18 	required under subdivision 3, whichever is earlier.
100.19 	(d) The working group may accept gifts and grants, which are accepted on behalf of 
100.20 	the state and constitute donations to the state. Funds received under this paragraph are 
100.21 	appropriated to the commissioner of transportation for purposes of the working group.
100.22 		Subd. 5.Deadline for appointments and designations. The appointments and 
100.23 	designations for the road-user charge working group must be completed by August 1, 2015. 

100.24 	Sec. 29. REGULAR ROUTE TRANSIT REQUIREMENT.
 100.25 	By September 1, 2015, the Metropolitan Council shall institute regular route transit 
100.26 	service to the city of Hastings, provided that the governing body of the city of Hastings 
100.27 	has entered into an agreement with the Metropolitan Council, no later than July 1, 2015, to 
100.28 	become a part of the transit taxing district under Minnesota Statutes, section 473.4461.

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

100.30 	Sec. 30. ENHANCED ORGANIZATIONAL EFFECTIVENESS AND 
100.31 	INNOVATION REVIEW.
 100.32 	(a) A review and assessment of the organizational structure of the Department of 
100.33 	Transportation is required to enhance organizational effectiveness, encourage prudent 
100.34 	allocation of resources, and deliver the greatest value to Minnesota. This review and 
101.1 	assessment shall be completed by a partnership that includes the Humphrey School of 
101.2 	Public Affairs, Carlson School of Management, and the State Smart Transportation 
101.3 	Initiative at the University of Wisconsin.
101.4 	(b) A preliminary report of this review and assessment shall be submitted to the 
101.5 	chairs and ranking minority members of the legislative committees having jurisdiction 
101.6 	over transportation policy and finance by December 15, 2015, with the final report 
101.7 	submitted by June 30, 2016.
101.8 	(c) At a minimum, the review and assessment shall include:
101.9 	(1) the relationship of each district, division, office, and section of the department to 
101.10 	the state's transportation goals under Minnesota Statutes, section 174.01, the department's 
101.11 	mission under Minnesota Statutes, section 174.02, the duties of the commissioner under 
101.12 	Minnesota Statutes, section 174.03, the annual performance targets under Minnesota 
101.13 	Statutes, section 174.03, subdivision 1c, and adherence to all relevant provisions of state 
101.14 	statute and federal law;
101.15 	(2) the budget assigned to each district, division, office, and section of the department;
101.16 	(3) the ratio of employees to supervisors in each district, division, office, and section 
101.17 	of the department;
101.18 	(4) recommendations identifying best practices, and comparisons with other state 
101.19 	departments of transportation;
101.20 	(5) recommendations regarding the appropriate ratio of employees to supervisors 
101.21 	for the variety of activities performed by the department;
101.22 	(6) recommendations regarding the appropriate increase in department operations 
101.23 	resulting from increases in capital investments;
101.24 	(7) recommendations regarding the appropriate fiscal responsibility assigned to 
101.25 	construction inspectors and engineers;
101.26 	(8) recommendations regarding the appropriate, fiscally constrained size of the 
101.27 	trunk highway system; and
101.28 	(9) recommendations regarding how to achieve the appropriate, fiscally constrained 
101.29 	size of the trunk highway system.

101.30 	EFFECTIVE DATE. This section is effective July 1, 2015.

101.31 	Sec. 31. ACTIVE TRANSPORTATION PROGRAM DEVELOPMENT.
 101.32 	(a) By October 1, 2015, the Advisory Committee on Nonmotorized Transportation 
101.33 	under Minnesota Statutes, section 174.37, shall develop and submit recommendations to 
101.34 	each administering authority under Minnesota Statutes, section 174.38, for developing 
101.35 	project evaluation and selection processes under Minnesota Statutes, section 174.38, 
102.1 	subdivision 7. The advisory committee may consult with representatives from the 
102.2 	Bicycle Alliance of Minnesota, Minnesota Chamber of Commerce, Metropolitan 
102.3 	Council Transportation Accessibility Advisory Committee, Minnesota Department of 
102.4 	Transportation district area transportation partnerships, Minnesota State Council on 
102.5 	Disability, organizations representing elderly populations, and public health organizations 
102.6 	with experience in active transportation.
102.7 	(b) In its next annual report under Minnesota Statutes, section 174.37, subdivision 
102.8 	4, the advisory committee shall include a summary of the recommendations under this 
102.9 	section and submit a copy to the chairs and ranking minority members of the legislative 
102.10 	committees with jurisdiction over transportation policy and finance. The report is subject 
102.11 	to Minnesota Statutes, section 3.195.

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

102.13 	Sec. 32. REPORT ON DEDICATED FUND EXPENDITURES. 
 102.14 	By January 15, 2016, the commissioner of management and budget shall submit 
102.15 	a report to the chairs and ranking minority members of the legislative committees with 
102.16 	jurisdiction over transportation finance. The report must list detailed expenditures and 
102.17 	transfers from the trunk highway fund and highway user tax distribution fund for fiscal 
102.18 	years 2010 through 2015, and shall include information on the purpose of each expenditure.

102.19 	Sec. 33. ROAD DESIGN STANDARDS.
 102.20 	By August 15, 2016, the commissioner of transportation shall, in collaboration 
102.21 	with city and county engineers, establish and adopt design standards and guidelines to 
102.22 	be applied consistently to trunk highways, county state-aid highways, and municipal 
102.23 	state-aid streets with similar characteristics. The standards and guidelines must align the 
102.24 	state-aid standards with the Department of Transportation trunk highway standards and 
102.25 	technical memoranda as appropriate. The commissioner shall report the adopted standards 
102.26 	and guidelines to the chairs and ranking minority members of the senate and house of 
102.27 	representatives committees with jurisdiction over transportation policy by August 15, 
102.28 	2016, and present an interim report by March 15, 2016.

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