1.1 	A bill for an act
1.2 	relating to transportation finance; establishing the budget for transportation 
1.3 	activities; modifying various provisions governing transportation finance and 
1.4 	policy; amending allocation of certain taxes and fees; establishing a fund; making 
1.5 	appropriations; authorizing the sale and issuance of state bonds;amending 
1.6 	Minnesota Statutes 2016, sections 16A.88, subdivision 2; 115A.908, subdivision 
1.7 	2; 117.189; 160.18, by adding a subdivision; 161.081, subdivision 3; 161.088, 
1.8 	subdivisions 4, 5, 7; 161.115, subdivision 190; 161.14, by adding subdivisions; 
1.9 	161.321, subdivision 6; 161.38, by adding a subdivision; 161.44, subdivisions 5, 
1.10 	6a, by adding a subdivision; 162.145, subdivision 2; 168.013, subdivision 1a, by 
1.11 	adding a subdivision; 168.021, subdivisions 1, 2, 2a; 168.33, subdivision 2; 
1.12 	168A.09, subdivision 1; 169.011, subdivision 34, by adding a subdivision; 169.18, 
1.13 	subdivision 5; 169.345, subdivisions 1, 3; 169.444, subdivision 2; 169.449, 
1.14 	subdivision 1; 169.865, subdivision 3; 171.02, subdivision 2b; 171.06, subdivision 
1.15 	2a; 171.061, subdivision 3; 171.12, subdivision 6; 173.02, subdivisions 18, 23, by 
1.16 	adding subdivisions; 173.06, subdivision 1; 173.07, subdivision 1; 173.08, by 
1.17 	adding subdivisions; 173.13, subdivision 11; 173.16, by adding subdivisions; 
1.18 	174.03, subdivisions 1a, 1c, by adding a subdivision; 174.50, subdivisions 5, 6b, 
1.19 	6c, 7; 174.56, subdivisions 1, 2, by adding a subdivision; 174.93; 219.166; 219.20, 
1.20 	subdivision 1; 221.031, by adding a subdivision; 222.49; 222.50, subdivision 6, 
1.21 	by adding a subdivision; 297A.815, subdivision 3; 297A.94; 297A.992, subdivision 
1.22 	6a; 297A.993, subdivision 2, by adding a subdivision; 299D.03, subdivision 6; 
1.23 	473.13, subdivision 1; 473.146, subdivision 3; 473.388, subdivision 4; 473.39, by 
1.24 	adding a subdivision; 473.3994, by adding subdivisions; 473.4051, subdivision 3; 
1.25 	Laws 2015, chapter 75, article 1, section 3, subdivision 3; proposing coding for 
1.26 	new law in Minnesota Statutes, chapters 168; 169; 173; 174; 219; 398A; 471; 473; 
1.27 	repealing Minnesota Statutes 2016, sections 161.115, subdivision 32; 297A.992, 
1.28 	subdivision 12; 473.4051, subdivision 2; Minnesota Rules, parts 8810.0800, subpart 
1.29 	3; 8810.1300, subpart 4.
1.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.31 	ARTICLE 1
1.32 	TRANSPORTATION APPROPRIATIONS

1.33 	Section 1. CITATION.
 2.1 	This act may be cited as the "Road and Bridge Act."

2.2	Sec. 2. SUMMARY OF APPROPRIATIONS.
 	
2.3 	The amounts shown in this section summarize direct appropriations by fund made in 
2.4 	this article and do not have legal effect.

2.5			2018
		2019
		Total
	
2.6	General
	$
	82,396,000
	$
	55,270,000
	$
	137,666,000
	
2.7	Airports
		42,631,000
		22,609,000
		65,240,000
	
2.8	C.S.A.H.
		744,172,000
		759,502,000
		1,503,673,000
	
2.9	M.S.A.S.
		195,682,000
		200,365,000
		396,047,000
	
2.10	Special Revenue
		66,445,000
		65,087,000
		131,532,000
	
2.11	H.U.T.D.
		10,474,000
		10,486,000
		20,960,000
	
2.12	Transportation Priorities
		105,104,000
		128,147,000
		233,251,000
	
2.13	Trunk Highway
		1,882,987,000
		1,758,547,000
		3,648,534,000
	
2.14	Total
	$
	3,024,786,000
	$
	2,871,866,000
	$
	5,896,652,000

2.15	Sec. 3. TRANSPORTATION APPROPRIATIONS
 	
2.16 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.17 	and for the purposes specified in this article. The appropriations are from the trunk highway 
2.18 	fund, or another named fund, and are available for the fiscal years indicated for each purpose. 
2.19 	Amounts for "Total Appropriation" and sums shown in the corresponding columns marked 
2.20 	"Appropriations by Fund" are summary only and do not have legal effect. Unless specified 
2.21 	otherwise, the amounts in the second year under "Appropriations by Fund" show the base 
2.22 	appropriations within the meaning of Minnesota Statutes, section 16A.11, subdivision 3, 
2.23 	by fund. The figures "2018" and "2019" used in this article mean that the appropriations 
2.24 	listed under them are available for the fiscal year ending June 30, 2018, or June 30, 2019, 
2.25 	respectively. "The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The 
2.26 	biennium" is fiscal years 2018 and 2019.

2.27				APPROPRIATIONS
	
2.28				Available for the Year
	
2.29				Ending June 30
	
2.30					2018
		2019

2.31
2.32	Sec. 4. DEPARTMENT OF 
TRANSPORTATION

2.33	Subdivision 1.Total Appropriations Summary
 	$
	2,891,106,000
	$
	2,778,175,000

3.1	Appropriations by Fund
	
3.2		2018
	2019
	
3.3	General
	24,879,000
	18,358,000
	
3.4	Airports
	42,631,000
	22,609,000
	
3.5	C.S.A.H.
	744,172,000
	759,502,000
	
3.6	M.S.A.S.
	195,682,000
	200,365,000
	
3.7	Special Revenue
	1,000,000
	-0-
	
3.8
3.9	Transportation 
Priorities
	105,104,000
	128,147,000
	
3.10	Trunk Highway
	1,777,639,000
	1,649,194,000
	
3.11 	The appropriations in this section are to the 
3.12 	commissioner of transportation. The amounts 
3.13 	that may be spent for each purpose are 
3.14 	specified in the following subdivisions.

3.15	Subd. 2.Multimodal Systems
 					
3.16 	(a) Aeronautics

3.17	(1) Airport Development and Assistance
		17,298,000
		17,298,000
	
3.18 	This appropriation is from the state airports 
3.19 	fund and must be spent according to 
3.20 	Minnesota Statutes, section 360.305, 
3.21 	subdivision 4.
3.22 	The base is $15,298,000 in each year for fiscal 
3.23 	years 2020 and 2021.
3.24 	Notwithstanding Minnesota Statutes, section 
3.25 	16A.28, subdivision 6, this appropriation is 
3.26 	available for five years after the year of the 
3.27 	appropriation. If the appropriation for either 
3.28 	year is insufficient, the appropriation for the 
3.29 	other year is available for it.
3.30 	If the commissioner of transportation 
3.31 	determines that a balance remains in the state 
3.32 	airports fund following the appropriations 
3.33 	made in this article and that the appropriations 
3.34 	made are insufficient for advancing airport 
3.35 	development and assistance projects, an 
4.1 	amount necessary to advance the projects, not 
4.2 	to exceed the balance in the state airports fund, 
4.3 	is appropriated in each year to the 
4.4 	commissioner and must be spent according to 
4.5 	Minnesota Statutes, section 360.305, 
4.6 	subdivision 4. Within two weeks of a 
4.7 	determination under this contingent 
4.8 	appropriation, the commissioner of 
4.9 	transportation must notify the commissioner 
4.10 	of management and budget and the chairs, 
4.11 	ranking minority members, and staff of the 
4.12 	legislative committees with jurisdiction over 
4.13 	transportation finance concerning the funds 
4.14 	appropriated. Funds appropriated under this 
4.15 	contingent appropriation do not adjust the base  
4.16 	for fiscal years 2020 and 2021.

4.17	(2) Aviation Support Services
		6,710,000
		6,854,000

4.18	Appropriations by Fund
	
4.19		2018
	2019
	
4.20	Airports
	5,231,000
	5,231,000
	
4.21	Trunk Highway
	1,479,000
	1,623,000

4.22	(3) Civil Air Patrol
		3,580,000
		80,000
	
4.23 	This appropriation is from the state airports 
4.24 	fund for the Civil Air Patrol.
4.25 	$3,500,000 is for a grant to renovate a portion 
4.26 	of and construct an addition to the training and 
4.27 	maintenance facility located at the South St. 
4.28 	Paul airport, and to furnish and equip the 
4.29 	facility, including communications equipment 
4.30 	and a mobile command post vehicle. 
4.31 	Notwithstanding Minnesota Statutes, section 
4.32 	16A.28, subdivision 6, this appropriation is 
4.33 	available for five years after the year of the 
4.34 	appropriation.

5.1
5.2	(4) International Falls-Koochiching County 
Airport Commission
		3,000,000
		-0-
	
5.3 	(i) This appropriation is from the state airports 
5.4 	fund for a grant to the International 
5.5 	Falls-Koochiching County Airport 
5.6 	Commission for the following improvements 
5.7 	to the Falls International Airport:
5.8 	(A) demolition of the existing terminal 
5.9 	building;
5.10 	(B) rehabilitation;
5.11 	(C) site preparation, including utilities and 
5.12 	civil work;
5.13 	(D) design, construction, furnishing, and 
5.14 	equipping Phase II of the new terminal 
5.15 	building, including a Transportation Safety 
5.16 	Administration office, weather office, 
5.17 	conference room, circulation corridor, airport 
5.18 	administration offices, United States Customs 
5.19 	and Border Protection storage rooms, offices, 
5.20 	restrooms, passenger-processing area, 
5.21 	wet-hold room, interview room, search room, 
5.22 	pre- and post-customs passenger waiting areas, 
5.23 	and vestibule; and
5.24 	(E) associated appurtenances of a capital 
5.25 	nature.
5.26 	(ii) After completion of the improvements 
5.27 	under item (i), any unspent money from this 
5.28 	appropriation may be used by the International 
5.29 	Falls-Koochiching County Airport 
5.30 	Commission for a commercial airline apron 
5.31 	expansion project at the Falls International 
5.32 	Airport.
5.33 	(iii) This appropriation does not require a 
5.34 	nonstate contribution or match.

6.1	(5) Duluth Airport Authority
		6,619,000
		-0-
	
6.2 	This appropriation is from the state airports 
6.3 	fund for a grant to the Duluth Airport 
6.4 	Authority to provide the federal match to 
6.5 	design and construct runway infrastructure at 
6.6 	the Duluth International Airport or the Sky 
6.7 	Harbor Airport in accordance with Minnesota 
6.8 	Statutes, section 360.017. For the purposes of 
6.9 	this appropriation, the commissioner may 
6.10 	waive the requirements of Minnesota Statutes, 
6.11 	section 360.305, subdivision 4, paragraph (b).

6.12	(6) Rochester International Airport
		2,333,000
		-0-
	
6.13 	This appropriation is from the state airports 
6.14 	fund for a grant to the city of Rochester to 
6.15 	design, rehabilitate, demolish, and expand 
6.16 	portions of the existing passenger terminal 
6.17 	building at the Rochester International Airport, 
6.18 	provided that this amount also includes money 
6.19 	to remodel, construct, furnish, and equip the 
6.20 	existing passenger terminal building and 
6.21 	associated appurtenances to meet United States 
6.22 	Customs and Border Protection and 
6.23 	Transportation Security Administration 
6.24 	standards for safety, security, and processing 
6.25 	time to accommodate domestic and 
6.26 	international flights. The capital improvements 
6.27 	paid for with this appropriation may be used 
6.28 	as the local contribution required by 
6.29 	Minnesota Statutes, section 360.305, 
6.30 	subdivision 4. This appropriation may be used 
6.31 	to reimburse the city for costs incurred after 
6.32 	May 1, 2016. This appropriation is not 
6.33 	available until the commissioner of 
6.34 	management and budget determines that at 
6.35 	least an equal amount has been committed to 
7.1 	the project from nonstate sources. Work that 
7.2 	may be completed with this appropriation 
7.3 	includes but is not limited to:
7.4 	(i) site preparation, including utilities, site civil 
7.5 	work, testing, and construction administration 
7.6 	services;
7.7 	(ii) the relocation, modification, and addition 
7.8 	of airline ticket counters, baggage claim 
7.9 	devices, public spaces, offices, restrooms, 
7.10 	support space, break rooms, lockers, 
7.11 	equipment storage, communications, hallways, 
7.12 	building signage, medical visitor rooms, 
7.13 	special needs accommodations, hold rooms, 
7.14 	secure storage, equipment maintenance areas, 
7.15 	and building engineering and technology 
7.16 	systems;
7.17 	(iii) improvements needed outside the terminal 
7.18 	to remove, restore, and tie into adjacent 
7.19 	utilities, sidewalks, driveways, parking lots, 
7.20 	and aircraft aprons; and
7.21 	(iv) the construction of covered exterior 
7.22 	equipment storage.

7.23	(7) Carlton County Airport Hangar
		320,000
		-0-
	
7.24 	This appropriation is from the state airports 
7.25 	fund for a grant to Carlton County to construct 
7.26 	a hangar at the Cloquet - Carlton County 
7.27 	Airport that (i) facilitates the basing of air 
7.28 	ambulance aircraft and (ii) provides basing 
7.29 	for corporate aircraft and turboprop and jet 
7.30 	aircraft that operate under Code of Federal 
7.31 	Regulations, title 14, part 135.

7.32	(8) St. Cloud Regional Airport Study
		250,000
		-0-
	
7.33 	Notwithstanding Minnesota Statutes, section 
7.34 	360.017, this appropriation is from the state 
8.1 	airports fund for a grant to the city of St. 
8.2 	Cloud for an air transport optimization 
8.3 	planning study for the St. Cloud Regional 
8.4 	Airport. The study must be comprehensive 
8.5 	and market-based, using economic 
8.6 	development and air service expertise to 
8.7 	research, analyze, and develop models and 
8.8 	strategies that maximize the return on 
8.9 	investments made to enhance the use and 
8.10 	impact of the St. Cloud Regional Airport. By 
8.11 	January 5, 2018, the city of St. Cloud shall 
8.12 	submit a report to the governor and the 
8.13 	members and staff of the legislative 
8.14 	committees with jurisdiction over capital 
8.15 	investment, transportation, and economic 
8.16 	development with recommendations based on 
8.17 	the findings of the study.

8.18	(9) Availability of Funds
					
8.19 	Notwithstanding Minnesota Statutes, section 
8.20 	16A.28, subdivision 6, the appropriations in 
8.21 	clauses (4) to (7) are available for five years 
8.22 	after the year of the appropriation.

8.23	(b) Transit
		52,191,000
		57,058,000

8.24	Appropriations by Fund
	
8.25		2018
	2019
	
8.26	General
	17,395,000
	17,395,000
	
8.27
8.28	Transportation 
Priorities
	33,950,000
	38,790,000
	
8.29	Trunk Highway
	846,000
	873,000
	
8.30 	$250,000 in each year is from the general fund 
8.31 	to pay administrative costs for the safe routes 
8.32 	to school program under Minnesota Statutes, 
8.33 	section 174.40.
8.34 	$150,000 in each year is from the general fund 
8.35 	for grants to transportation management 
9.1 	organizations that provide services exclusively 
9.2 	or primarily in the city located along the 
9.3 	marked Interstate Highway 494 corridor 
9.4 	having the highest population as of the 
9.5 	effective date of this section. The 
9.6 	commissioner must not retain any portion of 
9.7 	the funds appropriated under this section. 
9.8 	From the appropriation in each fiscal year, the 
9.9 	commissioner must make grant payments in 
9.10 	full by July 31. Permissible uses of funds 
9.11 	under this grant include administrative 
9.12 	expenses and programming and service 
9.13 	expansion, including but not limited to 
9.14 	staffing, communications, outreach and 
9.15 	education program development, and 
9.16 	operations management.
9.17 	The base from the general fund is $17,245,000 
9.18 	in each year for fiscal years 2020 and 2021.
9.19 	The base from the transportation priorities 
9.20 	fund is as established in Minnesota Statutes, 
9.21 	section 174.54, subdivision 3.

9.22	(c) Safe Routes to School
		2,500,000
		500,000
	
9.23 	This appropriation is from the general fund 
9.24 	for the safe routes to school program under 
9.25 	Minnesota Statutes, section 174.40.
9.26 	(d) Freight

9.27	(1) Freight and Commercial Vehicle Operations
		6,716,000
		5,928,000

9.28	Appropriations by Fund
	
9.29		2018
	2019
	
9.30	General
	1,366,000
	406,000
	
9.31	Trunk Highway
	5,350,000
	5,522,000
	
9.32 	$960,000 in the first year is from the general 
9.33 	fund for port development assistance grants 
9.34 	under Minnesota Statutes, chapter 457A, in 
10.1 	the amounts of: (1) $800,000 to the city of 
10.2 	Red Wing; and (2) $160,000 to the Port 
10.3 	Authority of Winona. Any improvements 
10.4 	made with the proceeds of the grants must be 
10.5 	publicly owned. This appropriation is available 
10.6 	in the second year.
10.7 	$150,000 in each year is for additional rail 
10.8 	safety and rail service activities, and this 
10.9 	amount annually is included in the base.

10.10	(2) Minnesota Rail Service Improvement
		5,651,000
		-0-

10.11	Appropriations by Fund
	
10.12		2018
	2019
	
10.13	General
	3,151,000
	-0-
	
10.14
10.15	Transportation 
Priorities
	1,500,000
	-0-
	
10.16	Special Revenue
	1,000,000
	-0-
	
10.17 	This appropriation is for the Minnesota rail 
10.18 	service improvement program under 
10.19 	Minnesota Statutes, sections 222.49 and 
10.20 	222.50.
10.21 	$1,000,000 in the first year is from the rail 
10.22 	service improvement account in the special 
10.23 	revenue fund for a grant to the city of Grand 
10.24 	Rapids to fund rail planning studies, design, 
10.25 	and preliminary engineering relating to the 
10.26 	construction of a freight rail line located in the 
10.27 	counties of Itasca, St. Louis, and Lake to serve 
10.28 	local producers and shippers. The city of 
10.29 	Grand Rapids shall collaborate with the Itasca 
10.30 	Economic Development Corporation and the 
10.31 	Itasca County Regional Railroad Authority in 
10.32 	the activities funded with the proceeds of this 
10.33 	grant. This appropriation is available until June 
10.34 	30, 2019.

10.35	(3) Hazardous Materials Rail Safety
		5,000,000
		5,000,000
	
11.1 	This appropriation is from the transportation 
11.2 	priorities fund for the hazardous materials rail 
11.3 	safety program and grants under Minnesota 
11.4 	Statutes, section 219.016.
11.5 	The base is as established in Minnesota 
11.6 	Statutes, section 174.54, subdivision 3.

11.7	(4) Railroad Warning Devices
		3,000,000
		3,000,000
	
11.8 	This appropriation is from the transportation 
11.9 	priorities fund to design, construct, and equip 
11.10 	replacement of active highway-rail grade 
11.11 	crossing warning devices that have reached 
11.12 	the end of their useful life.
11.13 	The base is as established in Minnesota 
11.14 	Statutes, section 174.54, subdivision 3.

11.15	(5) Rail Quiet Zones
		1,000,000
		1,000,000
	
11.16 	This appropriation is from the transportation 
11.17 	priorities fund for the public highway-rail 
11.18 	grade crossing quiet zone program and grants 
11.19 	under Minnesota Statutes, section 219.166.
11.20 	Up to ten percent of this appropriation may 
11.21 	be used for eligible activities necessary to 
11.22 	support the implementation and delivery of 
11.23 	the program.
11.24 	The base is as established in Minnesota 
11.25 	Statutes, section 174.54, subdivision 3.

11.26	Subd. 3.State Roads

11.27	(a) Operations and Maintenance
		343,446,000
		348,101,000
	
11.28 	$4,000,000 in each year is for additional 
11.29 	maintenance and improvements related to 
11.30 	intelligent transportation systems. This amount 
11.31 	is annually included in the base.
12.1 	$10,000,000 in each year is for additional 
12.2 	pavement preservation activities. This amount 
12.3 	is annually included in the base.
12.4 	$10,000,000 in each year is for additional fleet 
12.5 	equipment replacement in conformance with 
12.6 	performance targets. This amount is annually 
12.7 	included in the base.
12.8 	The commissioner is prohibited from 
12.9 	implementing the workforce optimization plan 
12.10 	proposed under the budget submitted for the 
12.11 	biennium under Minnesota Statutes, section 
12.12 	16A.11, and from otherwise appreciably 
12.13 	increasing the staffing complement for snow 
12.14 	and ice management.
12.15 	The base is $356,086,000 in fiscal year 2020 
12.16 	and $357,518,000 in fiscal year 2021.

12.17	(b) Program Planning and Delivery

12.18	(1) Planning and Research
		30,442,000
		30,790,000
	
12.19 	If a balance remains of this appropriation, the 
12.20 	commissioner may transfer up to that amount 
12.21 	for program delivery under clause (2).
12.22 	Up to $600,000 in the first year is for the 
12.23 	congestion and safety improvements study 
12.24 	under article 4, section 103.
12.25 	Up to $250,000 in the first year is for the 
12.26 	marked Interstate 94/494/694 interchange 
12.27 	improvement study under article 4, section 
12.28 	104.
12.29 	Up to $160,000 in the first year is for the 
12.30 	highway construction costs and cost inflation 
12.31 	study under article 4, section 105.
13.1 	$130,000 in each year is available for 
13.2 	administrative costs of the targeted group 
13.3 	business program.
13.4 	$266,000 in each year is available for grants 
13.5 	to metropolitan planning organizations outside 
13.6 	the seven-county metropolitan area.
13.7 	$900,000 in each year is available for grants 
13.8 	for transportation studies outside the 
13.9 	metropolitan area to identify critical concerns, 
13.10 	problems, and issues. These grants are 
13.11 	available:
13.12 	(1) to regional development commissions;
13.13 	(2) in regions where no regional development 
13.14 	commission is functioning, to joint powers 
13.15 	boards established under agreement of two or 
13.16 	more political subdivisions in the region to 
13.17 	exercise the planning functions of a regional 
13.18 	development commission; and
13.19 	(3) in regions where no regional development 
13.20 	commission or joint powers board is 
13.21 	functioning, to the Department of 
13.22 	Transportation district office for that region.

13.23	(2) Program Delivery
		222,862,000
		221,893,000
	
13.24 	This appropriation includes use of consultants 
13.25 	to support development and management of 
13.26 	projects.
13.27 	$968,000 in the first year is for a grant to the 
13.28 	city of Red Wing for trunk highway costs in 
13.29 	excess of the engineer's estimate and 
13.30 	associated program delivery for State Project 
13.31 	No. 2514-122, consisting of engineering and 
13.32 	reconstruction of the segment of marked U.S. 
13.33 	Highway 61 in Red Wing from westerly of 
14.1 	Old West Main Street to easterly of Potter 
14.2 	Street.
14.3 	Up to $140,000 in the first year is for 
14.4 	development, implementation, and reporting 
14.5 	on project selection best practices under article 
14.6 	4, section 91.
14.7 	$1,000,000 in each year is available for 
14.8 	management of contaminated and regulated 
14.9 	material on property owned by the Department 
14.10 	of Transportation, including mitigation of 
14.11 	property conveyances, facility acquisition or 
14.12 	expansion, chemical release at maintenance 
14.13 	facilities, and spills on the trunk highway 
14.14 	system where there is no known responsible 
14.15 	party. If the appropriation for either year is 
14.16 	insufficient, the appropriation for the other 
14.17 	year is available for it.
14.18 	The base is $229,878,000 in fiscal year 2020 
14.19 	and $231,305,000 in fiscal year 2021.

14.20	(c) State Road Construction
		1,066,938,000
		919,196,000
	
14.21 	This appropriation is for the actual 
14.22 	construction, reconstruction, and improvement 
14.23 	of trunk highways, including design-build 
14.24 	contracts, internal department costs associated 
14.25 	with delivering the construction program, 
14.26 	consultant usage to support these activities, 
14.27 	and the cost of actual payments to landowners 
14.28 	for lands acquired for highway rights-of-way, 
14.29 	payment to lessees, interest subsidies, and 
14.30 	relocation expenses.
14.31 	This appropriation includes federal highway 
14.32 	aid.
15.1 	$10,000,000 in each year is for the 
15.2 	transportation economic development program 
15.3 	under Minnesota Statutes, section 174.12.
15.4 	The commissioner may expend up to one-half 
15.5 	of one percent of the federal appropriations 
15.6 	under this paragraph as grants to opportunity 
15.7 	industrialization centers and other nonprofit 
15.8 	job training centers for job training programs 
15.9 	related to highway construction.
15.10 	The commissioner may transfer up to 
15.11 	$15,000,000 each year to the transportation 
15.12 	revolving loan fund.
15.13 	The commissioner may receive money 
15.14 	covering other shares of the cost of partnership 
15.15 	projects. These receipts are appropriated to 
15.16 	the commissioner for these projects.

15.17	(d) Corridors of Commerce
		25,000,000
		25,000,000
	
15.18 	This appropriation is for the corridors of 
15.19 	commerce program under Minnesota Statutes, 
15.20 	section 161.088.
15.21 	The commissioner may use up to 17 percent 
15.22 	of the amount each year for program delivery.

15.23	(e) Highway Debt Service
		217,196,000
		264,190,000
	
15.24 	$207,696,000 in fiscal year 2018 and 
15.25 	$254,690,000 in fiscal year 2019 are for 
15.26 	transfer to the state bond fund. If this 
15.27 	appropriation is insufficient to make all 
15.28 	transfers required in the year for which it is 
15.29 	made, the commissioner of management and 
15.30 	budget must transfer the deficiency amount 
15.31 	under the statutory open appropriation and 
15.32 	notify the chairs, ranking minority members, 
15.33 	and staff of the legislative committees with 
15.34 	jurisdiction over transportation finance and 
16.1 	the chairs of the senate Finance Committee 
16.2 	and the house of representatives Ways and 
16.3 	Means Committee of the amount of the 
16.4 	deficiency. Any excess appropriation cancels 
16.5 	to the trunk highway fund.

16.6	(f) Statewide Radio Communications
		5,648,000
		5,829,000

16.7	Appropriations by Fund
	
16.8		2018
	2019
	
16.9	General
	3,000
	3,000
	
16.10	Trunk Highway
	5,645,000
	5,826,000
	
16.11 	$3,000 in each year is from the general fund 
16.12 	to equip and operate the Roosevelt signal 
16.13 	tower for Lake of the Woods weather 
16.14 	broadcasting.

16.15	Subd. 4.Local Roads

16.16	(a) County State-Aid Roads
		744,172,000
		759,502,000
	
16.17 	This appropriation is from the county state-aid 
16.18 	highway fund under Minnesota Statutes, 
16.19 	section 161.081, and Minnesota Statutes, 
16.20 	chapter 162, and is available until spent.
16.21 	If the commissioner of transportation 
16.22 	determines that a balance remains in the 
16.23 	county state-aid highway fund following the 
16.24 	appropriations and transfers made in this 
16.25 	paragraph, and that the appropriations made 
16.26 	are insufficient for advancing county state-aid 
16.27 	highway projects, an amount necessary to 
16.28 	advance the projects, not to exceed the balance 
16.29 	in the county state-aid highway fund, is 
16.30 	appropriated in each year to the commissioner. 
16.31 	Within two weeks of a determination under 
16.32 	this contingent appropriation, the 
16.33 	commissioner of transportation must notify 
16.34 	the commissioner of management and budget 
16.35 	and the chairs, ranking minority members, and 
17.1 	staff of the legislative committees with 
17.2 	jurisdiction over transportation finance 
17.3 	concerning funds appropriated. The 
17.4 	commissioner must identify in the next budget 
17.5 	submission to the legislature under Minnesota 
17.6 	Statutes, section 16A.11, any amount that is 
17.7 	appropriated under this paragraph.

17.8	(b) Municipal State-Aid Roads
		195,682,000
		200,365,000
	
17.9 	This appropriation is from the municipal 
17.10 	state-aid street fund under Minnesota Statutes, 
17.11 	chapter 162, and is available until spent.
17.12 	If the commissioner of transportation 
17.13 	determines that a balance remains in the 
17.14 	municipal state-aid street fund following the 
17.15 	appropriations and transfers made in this 
17.16 	paragraph, and that the appropriations made 
17.17 	are insufficient for advancing municipal 
17.18 	state-aid street projects, an amount necessary 
17.19 	to advance the projects, not to exceed the 
17.20 	balance in the municipal state-aid street fund, 
17.21 	is appropriated in each year to the 
17.22 	commissioner. Within two weeks of a 
17.23 	determination under this contingent 
17.24 	appropriation, the commissioner of 
17.25 	transportation must notify the commissioner 
17.26 	of management and budget and the chairs, 
17.27 	ranking minority members, and staff of the 
17.28 	legislative committees with jurisdiction over 
17.29 	transportation finance concerning funds 
17.30 	appropriated. The commissioner must identify 
17.31 	in the next budget submission to the legislature 
17.32 	under Minnesota Statutes, section 16A.11, any 
17.33 	amount that is appropriated under this 
17.34 	paragraph.

17.35	(c) Metropolitan Area County Roads
		33,950,000
		38,790,000
	
18.1 	This appropriation is from the transportation 
18.2 	priorities fund for distribution as provided 
18.3 	under Minnesota Statutes, section 174.54, 
18.4 	subdivision 5.
18.5 	The base is as established in Minnesota 
18.6 	Statutes, section 174.54, subdivision 3.

18.7	(d) Small Cities Assistance
		12,500,000
		12,500,000
	
18.8 	This appropriation is from the transportation 
18.9 	priorities fund for the small cities assistance 
18.10 	program under Minnesota Statutes, section 
18.11 	162.145.
18.12 	The base is as established in Minnesota 
18.13 	Statutes, section 174.54, subdivision 3.

18.14	(e) Local Bridge Replacement and Rehabilitation
		12,383,000
		12,384,000
	
18.15 	This appropriation is from the transportation 
18.16 	priorities fund for the local bridge replacement 
18.17 	and rehabilitation program as provided in 
18.18 	Minnesota Statutes, section 174.50, 
18.19 	subdivisions 5 to 7.
18.20 	The base is as established in Minnesota 
18.21 	Statutes, section 174.54, subdivision 3.

18.22	Subd. 5.Agency Management

18.23	(a) Agency Services
		44,316,000
		45,206,000

18.24	(b) Tribal Training
		192,000
		218,000
	
18.25 	This appropriation is from the general fund to 
18.26 	facilitate tribal training for state agencies.
18.27 	This is a onetime appropriation.

18.28	(c) Buildings
		28,585,000
		29,439,000

18.29	Appropriations by Fund
	
18.30		2018
	2019
	
18.31	General
	54,000
	54,000
	
18.32	Trunk Highway
	28,531,000
	29,385,000
	
19.1 	Any money appropriated to the commissioner 
19.2 	of transportation for building construction for 
19.3 	any fiscal year before the first year is available 
19.4 	to the commissioner during the biennium to 
19.5 	the extent that the commissioner spends the 
19.6 	money on the building construction projects 
19.7 	for which the money was originally 
19.8 	encumbered during the fiscal year for which 
19.9 	it was appropriated. If the appropriation for 
19.10 	either year is insufficient, the appropriation 
19.11 	for the other year is available for it.

19.12	(d) Tort Claims
		600,000
		600,000
	
19.13 	If the appropriation for either year is 
19.14 	insufficient, the appropriation for the other 
19.15 	year is available for it.

19.16	Subd. 6.Transfers
 					
19.17 	(a) With the approval of the commissioner of 
19.18 	management and budget, the commissioner 
19.19 	of transportation may transfer unencumbered 
19.20 	balances among the appropriations from the 
19.21 	trunk highway fund and the state airports fund 
19.22 	made in this section. Transfers under this 
19.23 	paragraph must not be made:
19.24 	(1) between funds;
19.25 	(2) from the appropriations for state road 
19.26 	construction or debt service;
19.27 	(3) from the appropriations for operations and 
19.28 	maintenance or program delivery, except for 
19.29 	a transfer to state road construction or debt 
19.30 	service; or
19.31 	(4) if inconsistent with legislative intent.
19.32 	(b) The commissioner of transportation must 
19.33 	immediately report transfers under this 
20.1 	paragraph to the chairs, ranking minority 
20.2 	members, and staff of the legislative 
20.3 	committees with jurisdiction over 
20.4 	transportation finance. The authority for the 
20.5 	commissioner of transportation to make 
20.6 	transfers under Minnesota Statutes, section 
20.7 	16A.285, is superseded by the authority and 
20.8 	requirements under this paragraph.
20.9 	(c) The commissioner of transportation must 
20.10 	transfer from the flexible highway account in 
20.11 	the county state-aid highway fund the entire 
20.12 	amount in each year to the county turnback 
20.13 	account in the county state-aid highway fund. 
20.14 	The funds transferred are for highway 
20.15 	turnback purposes under Minnesota Statutes, 
20.16 	section 161.081, subdivision 3.

20.17
20.18	Subd. 7.Previous State Road Construction 
Appropriations
 					
20.19 	Any money appropriated to the commissioner 
20.20 	of transportation for state road construction 
20.21 	for any fiscal year before the first year is 
20.22 	available to the commissioner during the 
20.23 	biennium to the extent that the commissioner 
20.24 	spends the money on the state road 
20.25 	construction project for which the money was 
20.26 	originally encumbered during the fiscal year 
20.27 	for which it was appropriated.

20.28	Subd. 8.Contingent Appropriations
 					
20.29 	The commissioner of transportation, with the 
20.30 	approval of the governor and the written 
20.31 	approval of at least five members of a group 
20.32 	consisting of the members of the Legislative 
20.33 	Advisory Commission under Minnesota 
20.34 	Statutes, section 3.30, and the ranking minority 
20.35 	members of the legislative committees with 
21.1 	jurisdiction over transportation finance, may 
21.2 	transfer all or part of the unappropriated 
21.3 	balance in the trunk highway fund to an 
21.4 	appropriation:
21.5 	(1) for trunk highway design, construction, or 
21.6 	inspection that takes advantage of an 
21.7 	unanticipated receipt of income to the trunk 
21.8 	highway fund or federal advanced construction 
21.9 	funding;
21.10 	(2) for emergency trunk highway maintenance; 
21.11 	or
21.12 	(3) to pay tort or environmental claims.
21.13 	Nothing in this subdivision authorizes the 
21.14 	commissioner to increase the use of federal 
21.15 	advanced construction funding beyond 
21.16 	amounts specifically authorized. Any transfer 
21.17 	as a result of the use of federal advanced 
21.18 	construction funding must include an analysis 
21.19 	of the effects on the long-term trunk highway 
21.20 	fund balance. The amount transferred is 
21.21 	appropriated for the purpose of the account to 
21.22 	which it is transferred.

21.23
21.24	Subd. 9.Requirements for Certain Legal 
Activities
 					
21.25 	The commissioner of transportation is 
21.26 	prohibited from permitting legal counsel 
21.27 	employed by the Department of Transportation 
21.28 	to perform activities related to response to a 
21.29 	data practices request of the department under 
21.30 	Minnesota Statutes, chapter 13, and the 
21.31 	commissioner must enter into an agreement 
21.32 	with the attorney general for exclusive services 
21.33 	regarding these activities.

21.34	Sec. 5. METROPOLITAN COUNCIL
 		39,046,000
		22,530,000

22.1	Appropriations by Fund
	
22.2		2018
	2019
	
22.3	General
	37,546,000
	22,530,000
	
22.4
22.5	Transportation 
Priorities
	1,500,000
	-0-
	
22.6 	This appropriation is from the general fund to 
22.7 	the Metropolitan Council for transit system 
22.8 	operations under Minnesota Statutes, sections 
22.9 	473.371 to 473.449.
22.10 	$1,500,000 in the first year is from the 
22.11 	transportation priorities fund for financial 
22.12 	assistance to replacement service providers 
22.13 	under Minnesota Statutes, section 473.388, 
22.14 	for the purposes of the suburb-to-suburb transit 
22.15 	demonstration project. The replacement 
22.16 	service providers must collectively identify 
22.17 	one or more demonstration projects for 
22.18 	financial assistance and submit a notification 
22.19 	of the allocation to the council. The council 
22.20 	must allocate the appropriated funds as 
22.21 	directed by the replacement service providers. 
22.22 	Criteria for evaluating and identifying 
22.23 	demonstration projects must include but are 
22.24 	not limited to:
22.25 	(1) scope of service offering improvements;
22.26 	(2) integration with transit facilities and major 
22.27 	business, retail, or suburban centers;
22.28 	(3) extent to which a proposed route 
22.29 	complements existing transit service; and
22.30 	(4) density of employment along a proposed 
22.31 	route.
22.32 	Up to $210,000 in the first year and $98,000 
22.33 	in the second year are for the comprehensive 
23.1 	transit finance report under Minnesota 
23.2 	Statutes, section 174.93.
23.3 	The base is $8,349,000 in fiscal year 2020 and 
23.4 	$105,000 in fiscal year 2021.

23.5	Sec. 6. PUBLIC SAFETY

23.6	Subdivision 1.Total Appropriations Summary
 	$
	199,738,000
	$
	199,308,000

23.7	Appropriations by Fund
	
23.8		2018
	2019
	
23.9	General
	19,971,000
	14,382,000
	
23.10	Special Revenue
	63,945,000
	65,087,000
	
23.11	H.U.T.D.
	10,474,000
	10,486,000
	
23.12	Trunk Highway
	105,348,000
	109,353,000
	
23.13 	The appropriations in this section are to the 
23.14 	commissioner of public safety. The amounts 
23.15 	that may be spent for each purpose are 
23.16 	specified in the following subdivisions.

23.17	Subd. 2.Administration and Related Services

23.18	(a) Office of Communications
		553,000
		573,000

23.19	Appropriations by Fund
	
23.20		2018
	2019
	
23.21	General
	127,000
	130,000
	
23.22	Trunk Highway
	426,000
	443,000

23.23	(b) Public Safety Support
		6,372,000
		6,569,000

23.24	Appropriations by Fund
	
23.25		2018
	2019
	
23.26	General
	1,225,000
	1,235,000
	
23.27	H.U.T.D.
	1,366,000
	1,366,000
	
23.28	Trunk Highway
	3,781,000
	3,968,000

23.29	(c) Public Safety Officer Survivor Benefits
		640,000
		640,000
	
23.30 	This appropriation is from the general fund 
23.31 	for payment of public safety officer survivor 
23.32 	benefits under Minnesota Statutes, section 
23.33 	299A.44.
24.1 	If the appropriation for either year is 
24.2 	insufficient, the appropriation for the other 
24.3 	year is available for it.

24.4	(d) Public Safety Officer Reimbursements
		1,367,000
		1,367,000
	
24.5 	This appropriation is from the general fund to 
24.6 	be deposited in the public safety officer's 
24.7 	benefit account. This money is available for 
24.8 	reimbursements under Minnesota Statutes, 
24.9 	section 299A.465.

24.10	(e) Soft Body Armor Reimbursements
		700,000
		700,000

24.11	Appropriations by Fund
	
24.12		2018
	2019
	
24.13	General
	600,000
	600,000
	
24.14	Trunk Highway
	100,000
	100,000
	
24.15 	This appropriation is for soft body armor 
24.16 	reimbursements under Minnesota Statutes, 
24.17 	section 299A.38.

24.18	(f) Technology and Support Service
		3,777,000
		3,814,000

24.19	Appropriations by Fund
	
24.20		2018
	2019
	
24.21	General
	1,353,000
	1,365,000
	
24.22	H.U.T.D.
	19,000
	19,000
	
24.23	Trunk Highway
	2,405,000
	2,430,000

24.24	Subd. 3.State Patrol

24.25	(a) Patrolling Highways
		95,689,000
		93,323,000

24.26	Appropriations by Fund
	
24.27		2018
	2019
	
24.28	General
	5,787,000
	37,000
	
24.29	H.U.T.D.
	92,000
	92,000
	
24.30	Trunk Highway
	89,810,000
	93,194,000
	
24.31 	$5,750,000 from the general fund in the first 
24.32 	year is to purchase a helicopter for the State 
24.33 	Patrol.
25.1 	From this appropriation, State Patrol trainee 
25.2 	salaries as provided under Minnesota Statutes, 
25.3 	section 299D.03, subdivision 6, must be 
25.4 	provided as follows: (1) for trainees in the Law 
25.5 	Enforcement Training Opportunity program, 
25.6 	80 percent of the basic salary for patrol 
25.7 	officers; and (2) for all other trainees, 100 
25.8 	percent of the basic salary.

25.9	(b) Commercial Vehicle Enforcement
		8,455,000
		8,826,000

25.10	(c) Capitol Security
		8,402,000
		8,538,000
	
25.11 	This appropriation is from the general fund.
25.12 	The commissioner must not:
25.13 	(1) spend any money from the trunk highway 
25.14 	fund for capitol security; or
25.15 	(2) permanently transfer any state trooper from 
25.16 	the patrolling highways activity to capitol 
25.17 	security.
25.18 	The commissioner must not transfer any 
25.19 	money appropriated to the commissioner under 
25.20 	this section:
25.21 	(1) to capitol security; or
25.22 	(2) from capitol security.

25.23	(d) Vehicle Crimes Unit
		761,000
		773,000
	
25.24 	This appropriation is from the highway user 
25.25 	tax distribution fund.
25.26 	This appropriation is to investigate:
25.27 	(1) registration tax and motor vehicle sales tax 
25.28 	liabilities from individuals and businesses that 
25.29 	currently do not pay all taxes owed; and
25.30 	(2) illegal or improper activity related to the 
25.31 	sale, transfer, titling, and registration of motor 
25.32 	vehicles.

26.1	Subd. 4.Driver and Vehicle Services

26.2	(a) Vehicle Services
		30,745,000
		31,159,000

26.3	Appropriations by Fund
	
26.4		2018
	2019
	
26.5	Special Revenue
	22,509,000
	22,923,000
	
26.6	H.U.T.D.
	8,236,000
	8,236,000
	
26.7 	The special revenue fund appropriation is from 
26.8 	the vehicle services operating account.

26.9	(b) Driver Services
		32,014,000
		32,725,000
	
26.10 	This appropriation is from the driver services 
26.11 	operating account in the special revenue fund.
26.12 	$156,000 in each year is to maintain the 
26.13 	automated knowledge test system, and this 
26.14 	amount annually is included in the base.

26.15
26.16	(c) Minnesota Licensing and Registration System 
(MNLARS)
		8,000,000
		8,000,000
	
26.17 	This appropriation is for operations and 
26.18 	maintenance of the driver and vehicle 
26.19 	information system known as the Minnesota 
26.20 	Licensing and Registration System.
26.21 	$1,000,000 in the first year and $5,265,000 in 
26.22 	the second year are from the driver services 
26.23 	operating account in the special revenue fund. 
26.24 	$7,000,000 in the first year and $2,735,000 in 
26.25 	the second year are from the vehicle services 
26.26 	operating account in the special revenue fund.
26.27 	This is a onetime appropriation.

26.28	Subd. 5.Traffic Safety
 		941,000
		962,000

26.29	Appropriations by Fund
	
26.30		2018
	2019
	
26.31	General
	470,000
	470,000
	
26.32	Trunk Highway
	471,000
	492,000
	
27.1 	The appropriation from the general fund in 
27.2 	each year is for maintenance of the crash 
27.3 	record system, and this amount annually is 
27.4 	included in the base.

27.5	Subd. 6.Pipeline Safety
 		1,422,000
		1,439,000
	
27.6 	This appropriation is from the pipeline safety 
27.7 	account in the special revenue fund.

27.8 	Sec. 7. TRANSPORTATION PRIORITIES FUND TRANSFERS.
 27.9 	$180,896,000 in fiscal year 2018 and $164,153,000 in fiscal year 2019 are transferred 
27.10 	from the transportation priorities fund to the commissioner of transportation for deposit in 
27.11 	the highway user tax distribution fund.

27.12 	Sec. 8. APPROPRIATION CANCELLATION.
 27.13 	$1,100,000 of the appropriation for port development assistance under Laws 2015, 
27.14 	chapter 75, article 1, section 3, subdivision 2, paragraph (e), is canceled to the general fund 
27.15 	on June 30, 2017.

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

27.17 	Sec. 9. APPROPRIATIONS BUDGET.
 27.18 	In the budget submission to the legislature under Minnesota Statutes, section 16A.11, 
27.19 	for fiscal years 2020 and 2021, the commissioner of transportation, and the commissioner 
27.20 	of public safety with respect to the transportation portion of the public safety budget, must 
27.21 	present budget narratives and proposed appropriations for each appropriation established 
27.22 	in sections 3 and 5.

27.23 	Sec. 10. EFFECT OF APPROPRIATIONS.
 27.24 	If an appropriation in this act is enacted more than once in the 2017 legislative session 
27.25 	for the same purpose, the appropriation must be given effect only once.

27.26 	Sec. 11. Laws 2015, chapter 75, article 1, section 3, subdivision 3, is amended to read:

27.27	Subd. 3.State Roads

27.28	(a) Operations and Maintenance
		288,405,000
		290,916,000
	
28.1 	The base appropriation in fiscal year 2018 is 
28.2 	$292,140,000 and in fiscal year 2019 is 
28.3 	$301,545,000.

28.4	(b) Program Planning and Delivery
		237,529,000
		231,252,000
	
28.5 	$130,000 in each year is available for 
28.6 	administrative costs of the targeted group 
28.7 	business program.
28.8 	$266,000 in each year is available for grants 
28.9 	to metropolitan planning organizations outside 
28.10 	the seven-county metropolitan area.
28.11 	$900,000 in each year is available for grants 
28.12 	for transportation studies outside the 
28.13 	metropolitan area to identify critical concerns, 
28.14 	problems, and issues. These grants are 
28.15 	available: (1) to regional development 
28.16 	commissions; (2) in regions where no regional 
28.17 	development commission is functioning, to 
28.18 	joint powers boards established under 
28.19 	agreement of two or more political 
28.20 	subdivisions in the region to exercise the 
28.21 	planning functions of a regional development 
28.22 	commission; and (3) in regions where no 
28.23 	regional development commission or joint 
28.24 	powers board is functioning, to the 
28.25 	department's district office for that region.
28.26 	$1,000,000 in each year is available for 
28.27 	management of contaminated and regulated 
28.28 	material on property owned by the Department 
28.29 	of Transportation, including mitigation of 
28.30 	property conveyances, facility acquisition or 
28.31 	expansion, chemical release at maintenance 
28.32 	facilities, and spills on the trunk highway 
28.33 	system where there is no known responsible 
28.34 	party. If the appropriation for either year is 
29.1 	insufficient, the appropriation for the other 
29.2 	year is available for it.
29.3 	$6,804,000 in the first year and $1,000,000 in 
29.4 	the second year are available for the purposes 
29.5 	stated in Minnesota Statutes, section 12A.16, 
29.6 	subdivision 2.
29.7 	The base appropriation for program planning 
29.8 	and delivery in fiscal year 2018 is 
29.9 	$227,004,000 and in fiscal year 2019 is 
29.10 	$234,331,000.

29.1229.11
	(c) State Road Construction
		779,664,000
		744,166,000
849,166,000
	
29.13 	This appropriation is for the actual 
29.14 	construction, reconstruction, and improvement 
29.15 	of trunk highways, including design-build 
29.16 	contracts, internal department costs associated 
29.17 	with delivering the construction program, and 
29.18 	consultant usage to support these activities. 
29.19 	This includes the cost of actual payment to 
29.20 	landowners for lands acquired for highway 
29.21 	rights-of-way, payment to lessees, interest 
29.22 	subsidies, and relocation expenses.
29.23 	This appropriation includes federal highway 
29.24 	aid.
29.25 	$1,000,000 in the first year is to complete 
29.26 	projects using funds made available to the 
29.27 	commissioner of transportation under title XII 
29.28 	of the American Recovery and Reinvestment 
29.29 	Act of 2009, Public Law 111-5, and 
29.30 	implemented under Minnesota Statutes, 
29.31 	section 161.36, subdivision 7.
29.32 	$10,000,000 in each year is for the 
29.33 	transportation economic development program 
29.34 	under Minnesota Statutes, section 174.12.
30.1 	The commissioner may expend up to one-half 
30.2 	of one percent of the federal appropriations 
30.3 	under this paragraph as grants to opportunity 
30.4 	industrialization centers and other nonprofit 
30.5 	job training centers for job training programs 
30.6 	related to highway construction.
30.7 	The commissioner may transfer up to 
30.8 	$15,000,000 each year to the transportation 
30.9 	revolving loan fund.
30.10 	The commissioner may receive money 
30.11 	covering other shares of the cost of partnership 
30.12 	projects. These receipts are appropriated to 
30.13 	the commissioner for these projects.
30.14 	The base appropriation for state road 
30.15 	construction in each of fiscal years 2018 and 
30.16 	2019 is $695,800,000.

30.17	(d) Highway Debt Service
		197,381,000
		231,199,000
	
30.18 	$187,881,000 the first year and $221,699,000 
30.19 	the second year are for transfer to the state 
30.20 	bond fund. If this appropriation is insufficient 
30.21 	to make all transfers required in the year for 
30.22 	which it is made, the commissioner of 
30.23 	management and budget shall transfer the 
30.24 	deficiency amount under the statutory open 
30.25 	appropriation, and notify the chairs and 
30.26 	ranking minority members of the legislative 
30.27 	committees with jurisdiction over 
30.28 	transportation finance and the chairs of the 
30.29 	senate Committee on Finance and the house 
30.30 	of representatives Committee on Ways and 
30.31 	Means of the amount of the deficiency. Any 
30.32 	excess appropriation cancels to the trunk 
30.33 	highway fund.

30.34	(e) Statewide Radio Communications
		5,358,000
		5,486,000

31.1	Appropriations by Fund
	
31.2		2016
	2017
	
31.3	General
	35,000
	3,000
	
31.4	Trunk Highway
	5,323,000
	5,483,000
	
31.5 	$3,000 in each year is from the general fund 
31.6 	to equip and operate the Roosevelt signal 
31.7 	tower for Lake of the Woods weather 
31.8 	broadcasting.
31.9 	$32,000 in the first year is from the general 
31.10 	fund for a weather transmitter in Lake of the 
31.11 	Woods County.
31.12 	The base appropriation from the trunk 
31.13 	highway fund in fiscal year 2018 is $5,645,000 
31.14 	and in fiscal year 2019 is $5,826,000.

31.15 	EFFECTIVE DATE. This section is effective the day following submission by the 
31.16 	commissioner of transportation of all communications and materials, in their entirety and 
31.17 	without redaction, previously provided by the commissioner to any member of the legislature 
31.18 	following a request pursuant to the Minnesota Government Data Practices Act, Minnesota 
31.19 	Statutes, chapter 13, related to the Department of Transportation's 2016 request to the 
31.20 	Legislative Advisory Commission for authorization to expend federal funds under the Fixing 
31.21 	America's Surface Transportation Act (FAST Act). The submission must be made to the 
31.22 	chairs and ranking minority members of the legislative committees with jurisdiction over 
31.23 	transportation finance, finance, and ways and means, and to the revisor of statutes.

31.24 	ARTICLE 2
31.25 	TRANSPORTATION BONDS

31.26 	Section 1. BOND APPROPRIATIONS.
 31.27 	The sums shown in the column under "Appropriations" are appropriated from the bond 
31.28 	proceeds account in the trunk highway fund to the state agencies or officials indicated, to 
31.29 	be spent for public purposes. Appropriations of bond proceeds must be spent as authorized 
31.30 	by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified, money 
31.31 	appropriated in this article for a capital program or project may be used to pay state agency 
31.32 	staff costs that are attributed directly to the capital program or project in accordance with 
31.33 	accounting policies adopted by the commissioner of management and budget.

32.1	SUMMARY
	
32.2	Department of Transportation
	$
	1,300,000,000
	
32.3	Department of Management and Budget
		1,300,000
	
32.4	TOTAL
	$
	1,301,300,000

32.5						APPROPRIATIONS

32.6
32.7	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

32.8	Subdivision 1.Corridors of Commerce
 			$
	250,000,000
	
32.9 	This appropriation is to the commissioner of 
32.10 	transportation for the corridors of commerce 
32.11 	program under Minnesota Statutes, section 
32.12 	161.088.
32.13 	For projects within the department's 
32.14 	metropolitan district, the commissioner shall 
32.15 	first select projects that: (1) are recommended 
32.16 	under Minnesota Statutes, section 161.088, 
32.17 	subdivision 5, paragraph (b), from previous 
32.18 	selection processes; (2) are on (i) U.S. 
32.19 	highways, or (ii) noninterstate highways 
32.20 	having an average annual daily traffic volume 
32.21 	of at least 50,000 vehicles; and (3) provide for 
32.22 	capacity expansion through additional general 
32.23 	purpose or auxiliary lanes of travel.
32.24 	For projects outside of the department's 
32.25 	metropolitan district, the commissioner shall 
32.26 	first select any projects: (1) in which funds 
32.27 	have been previously provided under the 
32.28 	corridors of commerce program for 
32.29 	right-of-way acquisition, design, or 
32.30 	environmental analysis; and (2) that provide 
32.31 	for capacity expansion through additional 
32.32 	general purpose or auxiliary lanes of travel.
32.33 	The commissioner may use up to 17 percent 
32.34 	of the amount each year for program delivery.

33.1	Subd. 2.State Road Construction
 			$
	1,000,000,000
	
33.2 	This appropriation is to the commissioner of 
33.3 	transportation for construction, reconstruction, 
33.4 	and improvement of trunk highways, including 
33.5 	design-build contracts and use of consultants 
33.6 	to support these activities. This includes the 
33.7 	cost of actual payment to landowners for lands 
33.8 	acquired for highway rights-of-way, payment 
33.9 	to lessees, interest subsidies, and relocation 
33.10 	expenses.
33.11 	From this appropriation, $250,000,000 is 
33.12 	available in each year for fiscal years 2018 to 
33.13 	2021.

33.14	Subd. 3.State Road Construction
 			$
	50,000,000
	
33.15 	This appropriation is to the commissioner of 
33.16 	transportation for the purposes specified in 
33.17 	subdivision 2.
33.18 	From this appropriation, $25,000,000 is 
33.19 	available in each year for fiscal years 2018 
33.20 	and 2019.

33.21	Subd. 4.Cancellations
 					
33.22 	The appropriations in this section cancel as 
33.23 	specified under Minnesota Statutes, section 
33.24 	16A.642, except that the commissioner of 
33.25 	management and budget shall count the start 
33.26 	of authorization for issuance of state bonds as 
33.27 	the first day of the fiscal year during which 
33.28 	the bonds are available to be issued as 
33.29 	specified under subdivision 1, 2, or 3, and not 
33.30 	as the date of enactment of this section.

33.31	Sec. 3. BOND SALE EXPENSES
 			$
	1,300,000
	
33.32 	This appropriation is to the commissioner of 
33.33 	management and budget for bond sale 
34.1 	expenses under Minnesota Statutes, sections 
34.2 	16A.641, subdivision 8, and 167.50, 
34.3 	subdivision 4, and is effective through 2026.

34.4	Sec. 4. BOND SALE AUTHORIZATION.
 					
34.5 	To provide the money appropriated in this article from the bond proceeds account in the 
34.6 	trunk highway fund, the commissioner of management and budget shall sell and issue bonds 
34.7 	of the state in amount up to $1,301,300,000 in the manner, upon the terms, and with the 
34.8 	effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
34.9 	Constitution, article XIV, section 11, at the times and in the amounts requested by the 
34.10 	commissioner of transportation. The proceeds of the bonds, except accrued interest and any 
34.11 	premium received from the sale of the bonds, must be deposited in the bond proceeds account 
34.12 	in the trunk highway fund.

34.13 	Sec. 5. EFFECTIVE DATE.
 34.14 	This article is effective July 1, 2017.

34.15 	ARTICLE 3
34.16 	TRANSPORTATION-RELATED TAXES

34.17 	Section 1. Minnesota Statutes 2016, section 297A.815, subdivision 3, is amended to read:
34.18 		Subd. 3.Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision, 
34.19 	"net revenue" means an amount equal to the revenues, including interest and penalties, 
34.20 	collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
34.21 	(b) (a) On or before June 30 of each fiscal year, the commissioner of revenue shall 
34.22 	estimate the amount of the net revenue revenues, including interest and penalties, collected 
34.23 	under this section for the current fiscal year.
34.24 	(c) (b) On or after July 1 of the subsequent fiscal year, the commissioner of management 
34.25 	and budget shall transfer the net revenue as revenues estimated in paragraph (b) (a) from 
34.26 	the general fund, as follows:
34.27 	(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to the 
34.28 	county state-aid highway fund. Notwithstanding any other law to the contrary, the 
34.29 	commissioner of transportation shall allocate the funds transferred under this clause to the 
34.30 	counties in the metropolitan area, as defined in section 473.121, subdivision 4, excluding 
34.31 	the counties of Hennepin and Ramsey, so that each county shall receive of such amount the 
35.1 	percentage that its population, as defined in section 477A.011, subdivision 3, estimated or 
35.2 	established by July 15 of the year prior to the current calendar year, bears to the total 
35.3 	population of the counties receiving funds under this clause; and
35.4 	(2) the remainder to the greater Minnesota transit account to the transportation priorities 
35.5 	fund.
35.6 	(c) The revenues under this subdivision do not include the revenues, including interest 
35.7 	and penalties, generated by the sales tax imposed under section 297A.62, subdivision 1a, 
35.8 	which must be deposited as provided under the Minnesota Constitution, article XI, section 
35.9 	15.

35.10 	EFFECTIVE DATE. This section is effective the day following final enactment and 
35.11 	applies beginning with the estimate that must be completed before June 30, 2017, for a 
35.12 	transfer that occurs on or after July 1, 2017.

35.13 	Sec. 2. Minnesota Statutes 2016, section 297A.94, is amended to read:
35.14 	297A.94 DEPOSIT OF REVENUES.
35.15 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
35.16 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
35.17 	treasury and credit them to the general fund.
35.18 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
35.19 	account in the special revenue fund if:
35.20 	(1) the taxes are derived from sales and use of property and services purchased for the 
35.21 	construction and operation of an agricultural resource project; and
35.22 	(2) the purchase was made on or after the date on which a conditional commitment was 
35.23 	made for a loan guaranty for the project under section 41A.04, subdivision 3.
35.24 	The commissioner of management and budget shall certify to the commissioner the date on 
35.25 	which the project received the conditional commitment. The amount deposited in the loan 
35.26 	guaranty account must be reduced by any refunds and by the costs incurred by the Department 
35.27 	of Revenue to administer and enforce the assessment and collection of the taxes.
35.28 	(c) The commissioner shall deposit the revenues, including interest and penalties, derived 
35.29 	from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3, 
35.30 	paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
35.31 	(1) first to the general obligation special tax bond debt service account in each fiscal 
35.32 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and
36.1 	(2) after the requirements of clause (1) have been met, the balance to the general fund.
36.2 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
36.3 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
36.4 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
36.5 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
36.6 	subdivision 5, for the previous calendar year.
36.7 	(e) 72.43 percent of the revenues, including interest and penalties, transmitted to the 
36.8 	commissioner under section 297A.65, must be deposited by the commissioner in the state 
36.9 	treasury as follows:
36.10 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account in 
36.11 	the game and fish fund, and may be spent only on activities that improve, enhance, or protect 
36.12 	fish and wildlife resources, including conservation, restoration, and enhancement of land, 
36.13 	water, and other natural resources of the state;
36.14 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 
36.15 	be spent only for state parks and trails;
36.16 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 
36.17 	be spent only on metropolitan park and trail grants;
36.18 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
36.19 	may be spent only on local trail grants; and
36.20 	(5) two percent of the receipts must be deposited in the natural resources fund, and may 
36.21 	be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory, 
36.22 	and the Duluth Zoo.
36.23 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute for 
36.24 	traditional sources of funding for the purposes specified, but the dedicated revenue shall 
36.25 	supplement traditional sources of funding for those purposes. Land acquired with money 
36.26 	deposited in the game and fish fund under paragraph (e) must be open to public hunting 
36.27 	and fishing during the open season, except that in aquatic management areas or on lands 
36.28 	where angling easements have been acquired, fishing may be prohibited during certain times 
36.29 	of the year and hunting may be prohibited. At least 87 percent of the money deposited in 
36.30 	the game and fish fund for improvement, enhancement, or protection of fish and wildlife 
36.31 	resources under paragraph (e) must be allocated for field operations.
36.32 	(g) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit 
36.33 	the revenues, including interest and penalties, derived from the taxes imposed on the lease 
37.1 	or rental of a motor vehicle under section 297A.64, subdivision 1, into the state treasury 
37.2 	and credit them to the transportation priorities fund.
37.3 	(h) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit 
37.4 	of revenues under paragraph (g), the commissioner shall deposit into the state treasury and 
37.5 	credit to the transportation priorities fund an amount equal to the estimated revenues derived 
37.6 	from the tax rate imposed under section 297A.62, subdivision 1, on the lease or rental for 
37.7 	not more than 28 days of rental motor vehicles subject to section 297A.64. The commissioner 
37.8 	shall estimate the amount of sales tax revenues deposited under this paragraph based on the 
37.9 	amount of revenue deposited under paragraph (g).
37.10 	(i) $156,800,000 in fiscal year 2018, $151,100,000 in fiscal year 2019, $266,618,000 
37.11 	in fiscal year 2020, and $287,718,000 in fiscal year 2021 are transferred from the general 
37.12 	fund to the commissioner for deposit in the transportation priorities fund. Annually in fiscal 
37.13 	year 2022 and thereafter, 4.293 percent of the revenues generated by the sales tax imposed 
37.14 	under section 297A.62, subdivision 1, is transferred from the general fund to the 
37.15 	commissioner for deposit in the transportation priorities fund. The commissioner must make 
37.16 	transfers under this paragraph by July 15 in each year. Transfers in this paragraph represent 
37.17 	revenues attributable to sales and purchases of motor vehicle repair and replacement parts.
37.18 	(g) (j) The revenues deposited under paragraphs (a) to (f) this subdivision do not include 
37.19 	the revenues, including interest and penalties, generated by the sales tax imposed under 
37.20 	section 297A.62, subdivision 1a, which must be deposited as provided under the Minnesota 
37.21 	Constitution, article XI, section 15.

37.22 	EFFECTIVE DATE. This section is effective July 1, 2017.

37.23 	Sec. 3. Minnesota Statutes 2016, section 297A.992, subdivision 6a, is amended to read:
37.24 		Subd. 6a.Priority of fund uses. (a) The joint powers board shall allocate all revenues 
37.25 	from the taxes imposed under this section in conformance with the following priority order:
37.26 	(1) payment of debt service necessary for the fiscal year on bonds or other obligations 
37.27 	issued prior to January 1, 2011, under subdivision 7; and
37.28 	(2) payment to the Metropolitan Council of 100 percent, or a portion that is not paid by 
37.29 	counties under section 297A.993, subdivision 2a, of the annual net operating and capital 
37.30 	maintenance costs, as certified by the Metropolitan Council, for all light rail transit lines in 
37.31 	which a grant award for project development, capital, capital maintenance, or operating 
37.32 	expenditures has been provided under this section; and
37.33 	(3) as otherwise authorized under this section.
38.1 	(b) Project development in this subdivision includes but is not limited to feasibility and 
38.2 	alternatives analysis, design, engineering, environmental analysis, property acquisition, and 
38.3 	construction.

38.4 	EFFECTIVE DATE. This section is effective the day following final enactment and 
38.5 	applies to costs occurring on or after July 1, 2017.

38.6 	Sec. 4. Minnesota Statutes 2016, section 297A.993, subdivision 2, is amended to read:
38.7 		Subd. 2.Allocation; termination. The proceeds of the taxes must be dedicated 
38.8 	exclusively to: (1) payment of the capital cost of a specific transportation project or 
38.9 	improvement; (2) payment of the costs, which may include both capital and operating costs, 
38.10 	of a specific transit project or improvement; (3) payment of the capital costs of a safe routes 
38.11 	to school program under section 174.40; or (4) payment of transit operating and capital 
38.12 	maintenance costs, including as provided in subdivision 2a. The transportation or transit 
38.13 	project or improvement must be designated by the board of the county, or more than one 
38.14 	county acting under a joint powers agreement. Except for taxes for operating costs of a 
38.15 	transit project or improvement, or for transit operations, the taxes must terminate when 
38.16 	revenues raised are sufficient to finance the project.

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

38.18 	Sec. 5. Minnesota Statutes 2016, section 297A.993, is amended by adding a subdivision 
38.19 	to read:
38.20 		Subd. 2a.Allocation for certain transitways. (a) This subdivision applies to a county:
38.21 	(1) that has previously imposed and is no longer imposing a local sales tax as part of a 
38.22 	joint powers agreement under section 297A.992;
38.23 	(2) that imposes the tax under this section; and
38.24 	(3) in which a light rail transit line is located, whether wholly or partially.
38.25 	(b) All counties subject to this subdivision, and the joint powers board under section 
38.26 	297A.992 if the joint powers agreement under section 297A.992, subdivision 3, is not 
38.27 	terminated, must collectively enter into an agreement that determines and allocates payments 
38.28 	to the Metropolitan Council that, in total, equal at least the amount required to be provided 
38.29 	under section 297A.992, subdivision 6a, paragraph (a), clause (2). Nothing in this paragraph 
38.30 	prevents payments from other entities or sources of funds.

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

39.1 	Sec. 6. MOTOR VEHICLE PARTS SALES TAXES ESTIMATION.
 39.2 	(a) By January 15, 2019, the commissioner of revenue must submit a report on state 
39.3 	general sales taxes attributable to motor vehicle repair and replacement parts to the members 
39.4 	and staff of the legislative committees with jurisdiction over taxes and transportation policy 
39.5 	and finance.
39.6 	(b) The report must provide an estimate, based on federal data and department 
39.7 	consumption models, of the percentage of total sales tax revenues collected in a calendar 
39.8 	year from the tax rate imposed under Minnesota Statutes, section 297A.62, subdivision 1, 
39.9 	that is attributable to sales and purchases of motor vehicle repair and replacement parts.
39.10 	(c) For purposes of this section, "motor vehicle repair and replacement parts" includes:
39.11 	(1) all parts, motor vehicle tires, accessories, and equipment incorporated or affixed to 
39.12 	the motor vehicle as part of the motor vehicle maintenance or repair; and
39.13 	(2) paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor 
39.14 	vehicle maintenance or repair.
39.15 	(d) For purposes of this section, "motor vehicle tire" means any tire of the type used on 
39.16 	highway vehicles if wholly or partially made of rubber and if marked according to federal 
39.17 	regulations for highway use. For purposes of this section, "motor vehicle" has the meaning 
39.18 	given in Minnesota Statutes, section 297B.01, subdivision 11.

39.19 	Sec. 7. REPEALER.
 39.20 	Minnesota Statutes 2016, section 297A.992, subdivision 12, is repealed.

39.21 	ARTICLE 4
39.22 	TRANSPORTATION POLICY AND FINANCE

39.23 	Section 1. Minnesota Statutes 2016, section 16A.88, subdivision 2, is amended to read:
39.24 		Subd. 2.Metropolitan area transit account. (a) The metropolitan area transit account 
39.25 	is established within the transit assistance fund in the state treasury. All money in the account 
39.26 	is annually appropriated to the Metropolitan Council for the funding of transit systems 
39.27 	within the metropolitan area under sections 473.384, 473.386, 473.387, 473.388, and 473.405
39.28 	to 473.449.
39.29 	(b) From appropriations in this subdivision, the Metropolitan Council must first allocate 
39.30 	funds necessary for special transportation service under section 473.386.

40.1 	Sec. 2. Minnesota Statutes 2016, section 115A.908, subdivision 2, is amended to read:
40.2 		Subd. 2.Deposit of revenue. Revenue collected under this section shall be credited to 
40.3 	the environmental transportation priorities fund.

40.4 	EFFECTIVE DATE. This section is effective July 1, 2020, and applies for revenues 
40.5 	collected on or after that date.

40.6 	Sec. 3. Minnesota Statutes 2016, section 117.189, is amended to read:
40.7 	117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.
40.8 	(a) Sections 117.031; 117.036; 117.055, subdivision 2, paragraph (b); 117.186; 117.187; 
40.9 	117.188; and 117.52, subdivisions 1a and 4, do not apply to the use of eminent domain 
40.10 	authority by public service corporations for any purpose other than construction or expansion 
40.11 	of:
40.12 	(1) a high-voltage transmission line of 100 kilovolts or more, or ancillary substations; 
40.13 	or
40.14 	(2) a natural gas, petroleum, or petroleum products pipeline, or ancillary compressor 
40.15 	stations or pumping stations.; or
40.16 	(3) a light rail transit or bus rapid transit line.
40.17 	(b) For purposes of an award of appraisal fees under section 117.085, the fees awarded 
40.18 	may not exceed $1,500 for all types of property except for a public service corporation's 
40.19 	use of eminent domain for:
40.20 	(1) a high-voltage transmission line, where the award may not exceed $3,000; and
40.21 	(2) a light rail transit or bus rapid transit line, where the award shall be as provided in 
40.22 	section 117.085.
40.23 	(c) For purposes of this section, "pipeline" does not include a natural gas distribution 
40.24 	line transporting gas to an end user.

40.25 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2017.

40.26 	Sec. 4. Minnesota Statutes 2016, section 160.18, is amended by adding a subdivision to 
40.27 	read:
40.28 		Subd. 4.Trunk highway appeal process. (a) Notwithstanding chapter 14 and section 
40.29 	14.386, the commissioner must establish a concise, expedited process that allows an owner 
40.30 	or occupant of a property abutting a trunk highway to appeal a denial or revocation of an 
41.1 	access permit. The owner or occupant must initiate an appeal no later than 30 days after the 
41.2 	date the commissioner issues written notice of the denial or revocation of an access permit. 
41.3 	The process must provide the owner or occupant and Department of Transportation staff 
41.4 	the opportunity to present information supporting each party's respective position. The 
41.5 	hearing must be conducted by an administrative law judge assigned by the chief 
41.6 	administrative law judge. The administrative law judge must maintain a transcript of the 
41.7 	hearing and keep a record of all documents and data submitted at the hearing. Within 30 
41.8 	days of the hearing's conclusion, the administrative law judge must transmit to the 
41.9 	commissioner the record of the proceedings, along with a report and recommendation based 
41.10 	on the record made in the informal hearing. The commissioner must make a written decision 
41.11 	regarding the access permit.
41.12 	(b) Section 15.99 does not apply to appeals under this subdivision.

41.13 	Sec. 5. Minnesota Statutes 2016, section 161.081, subdivision 3, is amended to read:
41.14 		Subd. 3.Flexible highway account; turnback accounts. (a) The flexible highway 
41.15 	account is created in the state treasury. Money in the account shall be used must be allocated 
41.16 	as follows:
41.17 	(1) in fiscal years 2009 and 2010, 100 percent of the excess sum, as calculated in 
41.18 	paragraph (i), and in fiscal years 2011 and thereafter, 50 16 percent of the excess sum, as 
41.19 	calculated in paragraph (i), amount available in the flexible highway account for counties 
41.20 	in the metropolitan area, as defined in section 473.121, subdivision 4, but for the purposes 
41.21 	of the calculation cities of the first class will be excluded in the metropolitan area distributed 
41.22 	proportionally based on the most recent estimate of county population excluding the 
41.23 	population of any city of the first class; and
41.24 	(2) of the amount available in the flexible highway account less the amount under clause 
41.25 	(1), as determined by the commissioner under this section for:
41.26 	(i) restoration of former trunk highways that have reverted to counties or to statutory or 
41.27 	home rule charter cities, or for trunk highways that will be restored and subsequently turned 
41.28 	back by agreement between the commissioner and the local road authority;
41.29 	(ii) safety improvements on county highways, municipal highways, streets, or town 
41.30 	roads; and
41.31 	(iii) routes of regional significance.
41.32 	(b) For purposes of this subdivision, "restoration" means the level of effort required to 
41.33 	improve the route that will be turned back to an acceptable condition as determined by 
42.1 	agreement made between the commissioner and the county or city before the route is turned 
42.2 	back.
42.3 	(c) The commissioner shall review the need for funds to restore highways that have been 
42.4 	or will be turned back. The commissioner shall determine, on a biennial basis, the percentage 
42.5 	of funds in the flexible highway account to be distributed to each district, and within each 
42.6 	district the percentage to be used for each of the purposes specified in paragraph (a). Money 
42.7 	in the account may be used for safety improvements and routes of regional significance 
42.8 	only after money is set aside to restore the identified turnbacks. The commissioner shall 
42.9 	make these determinations only after meeting and holding discussions with committees 
42.10 	selected by the statewide associations of both county commissioners and municipal officials. 
42.11 	The commissioner shall, to the extent feasible, annually allocate 50 percent of the funds in 
42.12 	the flexible highway account to the department's metropolitan district, and 50 percent to 
42.13 	districts in greater Minnesota.
42.14 	(d) Money that will be used for the restoration of trunk highways that have reverted or 
42.15 	that will revert to cities must be deposited in the municipal turnback account, which is 
42.16 	created in the state treasury.
42.17 	(e) Money that will be used for the restoration of trunk highways that have reverted or 
42.18 	that will revert to counties must be deposited in the county turnback account, which is 
42.19 	created in the state treasury.
42.20 	(f) Money that will be used for safety improvements must be deposited in the highway 
42.21 	safety improvement account, which is created in the state treasury to be used as grants to 
42.22 	statutory or home rule charter cities, towns, and counties to assist in paying the costs of 
42.23 	constructing or reconstructing city streets, county highways, or town roads to reduce crashes, 
42.24 	deaths, injuries, and property damage.
42.25 	(g) Money that will be used for routes of regional significance must be deposited in the 
42.26 	routes of regional significance account, which is created in the state treasury, and used as 
42.27 	grants to statutory or home rule charter cities, towns, and counties to assist in paying the 
42.28 	costs of constructing or reconstructing city streets, county highways, or town roads with 
42.29 	statewide or regional significance that have not been fully funded through other state, federal, 
42.30 	or local funding sources.
42.31 	(h) As part of each biennial budget submission to the legislature, the commissioner shall 
42.32 	describe how the money in the flexible highway account will be apportioned among the 
42.33 	county turnback account, the municipal turnback account, the trunk highway fund for routes 
43.1 	turned back to local governments by agreement, the highway safety improvement account, 
43.2 	and the routes of regional significance account.
43.3 	(i) The excess sum is calculated as the sum of revenue within the flexible highway 
43.4 	account:
43.5 	(1) attributed to that portion of the gasoline excise tax rate under section 296A.07, 
43.6 	subdivision 3, in excess of 20 cents per gallon, and to that portion of the excise tax rates in 
43.7 	excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon for E85 
43.8 	and M85 under section 296A.07, subdivision 3, and special fuel under section 296A.08, 
43.9 	subdivision 2;
43.10 	(2) attributed to a change in the passenger vehicle registration tax under section 168.013, 
43.11 	imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal year 2008, 
43.12 	multiplied by (ii) the annual average United States Consumer Price Index for the calendar 
43.13 	year previous to the current calendar year, divided by the annual average United States 
43.14 	Consumer Price Index for calendar year 2007; and
43.15 	(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the 
43.16 	percentage allocated to the flexible highway account in fiscal year 2007.
43.17 	(j) For purposes of this subdivision, the United States Consumer Price Index identified 
43.18 	in paragraph (i), clause (2), is for all urban consumers, United States city average, as 
43.19 	determined by the United States Department of Labor.

43.20 	Sec. 6. Minnesota Statutes 2016, section 161.088, subdivision 4, is amended to read:
43.21 		Subd. 4.Project eligibility. (a) The commissioner shall must establish eligibility 
43.22 	requirements for projects that can be funded under the program. Eligibility must include:
43.23 	(1) consistency with the statewide multimodal transportation plan under section 174.03;
43.24 	(2) location of the project on an interregional corridor, for a project located outside of 
43.25 	the Department of Transportation metropolitan district;
43.26 	(3) placement into at least one project classification under subdivision 3;
43.27 	(4) a maximum requirement that project construction work is able to commence within 
43.28 	three years, or a longer length of time, as determined by the commissioner, until 
43.29 	commencement of construction work on the project; and
43.30 	(5) for each type of project classification under subdivision 3, a maximum allowable 
43.31 	amount for the total project cost estimate, as determined by the commissioner with available 
43.32 	data.
44.1 	(b) A project whose construction is programmed in the state transportation improvement 
44.2 	program is not eligible for funding under the program. This paragraph does not apply to a 
44.3 	project that is programmed as result of selection under this section.
44.4 	(c) A project may be, but is not required to be, identified in the 20-year state highway 
44.5 	capital investment plan under section 174.03.

44.6 	Sec. 7. Minnesota Statutes 2016, section 161.088, subdivision 5, is amended to read:
44.7 		Subd. 5.Project selection process; criteria. (a) The commissioner shall must establish 
44.8 	a process for identification, evaluation, and selection of to identify, evaluate, and select
44.9 	projects under the program.
44.10 	(b) As part of the project selection process, the commissioner shall must annually accept 
44.11 	recommendations on candidate projects from area transportation partnerships and other 
44.12 	interested stakeholders in each Department of Transportation district. For each candidate 
44.13 	project identified under this paragraph, the commissioner shall must determine eligibility, 
44.14 	classify, and if appropriate eligible, evaluate the project for the program.
44.15 	(c) Project evaluation and prioritization must be performed on the basis of objective 
44.16 	criteria, which must include:
44.17 	(1) a return on investment measure that provides for comparison across eligible projects;
44.18 	(2) measurable impacts on commerce and economic competitiveness;
44.19 	(3) efficiency in the movement of freight, including but not limited to which may include:
44.20 	(i) measures of annual average daily traffic and commercial vehicle miles traveled, which 
44.21 	may include data near the project location on that trunk highway or on connecting trunk 
44.22 	and local highways; and
44.23 	(ii) measures of congestion or travel time reliability, which may be within or near the 
44.24 	project limits, or both;
44.25 	(4) improvements to traffic safety;
44.26 	(5) connections to regional trade centers, local highway systems, and other transportation 
44.27 	modes;
44.28 	(6) the extent to which the project addresses multiple transportation system policy 
44.29 	objectives and principles; and
44.30 	(7) support and consensus for the project among members of the surrounding community.
45.1 	(d) As part of the project selection process, the commissioner may divide funding to be 
45.2 	separately available among projects within each classification under subdivision 3, and may 
45.3 	apply separate or modified criteria among those projects falling within each classification.

45.4 	Sec. 8. Minnesota Statutes 2016, section 161.088, subdivision 7, is amended to read:
45.5 		Subd. 7.Legislative report; evaluation. (a) Starting in 2014, Annually by November 
45.6 	1, the commissioner shall electronically submit a report on the corridors of commerce 
45.7 	program to the chairs and ranking minority members of the legislative committees with 
45.8 	jurisdiction over transportation policy and finance. At a minimum, the report must include:
45.9 	(1) a summary of the program, including a review of the:
45.10 	(i) project selection process details that address program design and implementation, 
45.11 	decision-making procedures, and eligibility and criteria, evaluation; and
45.12 	(ii) all criteria including any established by the commissioner, criteria measurement 
45.13 	methodologies, and any criteria weighting or ranking used in project selection;
45.14 	(2) a summary of program finance, including funds expended in the previous selection 
45.15 	cycle, any future operating costs assigned under subdivision 6, and total funds expended 
45.16 	since program inception;
45.17 	(2) (3) a listing list of projects funded under the program in the previous selection cycle, 
45.18 	including:
45.19 	(i) project classification;
45.20 	(ii) a breakdown of project costs and funding sources; and
45.21 	(iii) any future operating costs assigned under subdivision 6; and
45.22 	(iv) a brief project description that is comprehensible to a lay audience;
45.23 	(3) (4) a listing comprehensive list of evaluated projects and candidate project 
45.24 	recommendations as required under subdivision 5, paragraph (b), including that identifies 
45.25 	for each project: eligibility, classification, evaluation results for each criterion, ranking if 
45.26 	applicable, and disposition in the selection process; and
45.27 	(4) (5) any recommendations for changes to statutory requirements of the program.
45.28 	(b) Starting in 2016, and in every even-numbered year thereafter In every third year 
45.29 	following a year in which project selection is completed, but not more frequently than every 
45.30 	other year, the commissioner shall must incorporate into the report the results of an 
45.31 	independent evaluation of impacts and effectiveness of the program. The evaluation must 
46.1 	be performed by agency staff or a consultant. The individual or individuals performing the 
46.2 	evaluation must have experience in program evaluation, but must not be regularly involved 
46.3 	in the program's implementation.
46.4 	(c) Notwithstanding paragraph (a), a report is not required in a year in which:
46.5 	(1) no project selection was completed during the preceding 12 months; and
46.6 	(2) an evaluation under paragraph (b) is not due.

46.7 	Sec. 9. Minnesota Statutes 2016, section 161.115, subdivision 190, is amended to read:
46.8 		Subd. 190.Route No. 259. Beginning at a point on Statutory Route No. 100, at or near 
46.9 	Henderson; thence extending in a general southeasterly direction to a point on Statutory 
46.10 	Route No. 123, at or near Le Sueur.

46.11 	EFFECTIVE DATE. This section is effective the day after the commissioner of 
46.12 	transportation receives a copy of the agreement between the commissioner of transportation 
46.13 	and the governing body of Le Sueur County to transfer jurisdiction of Legislative Route 
46.14 	No. 123 and after the commissioner notifies the revisor of statutes under section 108, 
46.15 	paragraph (b).

46.16 	Sec. 10. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
46.17 	read:
46.18 		Subd. 83.Chip A. Imker Memorial Highway. That segment of marked Trunk Highway 
46.19 	65 from Isanti County State-Aid Highway 19, known as 305th Avenue NE, to the northerly 
46.20 	limit of Cambridge Township is designated as "Chip A. Imker Memorial Highway." Subject 
46.21 	to section 161.139, the commissioner shall adopt a suitable design to mark this highway 
46.22 	and erect appropriate signs.

46.23 	Sec. 11. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
46.24 	read:
46.25 		Subd. 84.Medal of Honor Recipient Kenneth L. Olson Highway. That segment of 
46.26 	marked Trunk Highway 23 within the city of Paynesville and the town of Paynesville is 
46.27 	designated as "Medal of Honor Recipient Kenneth L. Olson Highway." Subject to section 
46.28 	161.139, the commissioner shall adopt a suitable design to mark this highway and erect 
46.29 	appropriate signs.

47.1 	Sec. 12. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
47.2 	read:
47.3 		Subd. 85.Corporal Benjamin S. Kopp Bridge. The bridge on Dakota County State-Aid 
47.4 	Highway 46, known as Brandel Drive within the city of Coates, over marked U.S. Highway 
47.5 	52 is designated as "Corporal Benjamin S. Kopp Bridge." Subject to section 161.139, the 
47.6 	commissioner shall adopt a suitable design to mark this highway and erect appropriate signs.

47.7 	Sec. 13. Minnesota Statutes 2016, section 161.321, subdivision 6, is amended to read:
47.8 		Subd. 6.Rules; eligibility. (a) The rules adopted by the commissioner of administration 
47.9 	to define small businesses and to set time and other eligibility requirements for participation 
47.10 	in programs under sections 16C.16 to 16C.19 apply to this section. The commissioner may 
47.11 	promulgate other rules necessary to carry out this section.
47.12 	(b) In addition to other eligibility requirements, a small targeted group business or 
47.13 	veteran-owned small business is eligible for the bid preferences under this section only for 
47.14 	eight years following the latest of:
47.15 	(1) May 1, 2012;
47.16 	(2) for a targeted group business, the date of initial certification by the commissioner of 
47.17 	administration, as provided under section 16C.19;
47.18 	(3) for a veteran-owned small business, the date of initial certification by the United 
47.19 	States Department of Veterans Affairs, as provided under section 16C.19, paragraph (d); 
47.20 	or
47.21 	(4) for a veteran-owned small business, the release or discharge of any one of the owners 
47.22 	from military active service, as defined in section 190.05, subdivision 5, lasting for a period 
47.23 	of 179 days or longer.

47.24 	Sec. 14. Minnesota Statutes 2016, section 161.38, is amended by adding a subdivision to 
47.25 	read:
47.26 		Subd. 8.Spending on trunk highway system. The commissioner must maintain 
47.27 	information on expenditures by local road authorities from local funding sources for trunk 
47.28 	highway system projects.

47.29 	Sec. 15. Minnesota Statutes 2016, section 161.44, subdivision 5, is amended to read:
47.30 		Subd. 5.Conveyance to highest bidder in certain cases. If the larger tract has been 
47.31 	platted into lots or divided into smaller tracts and the commissioner elects to proceed under 
48.1 	this subdivision, or if the lands constituted an entire tract and the person from whom the 
48.2 	lands were acquired and the person's spouse are deceased, or if the offers as provided for 
48.3 	are not accepted and the amount of money not tendered within the time prescribed, the lands 
48.4 	may be sold and conveyed to the owner of the land abutting upon the lands in the same 
48.5 	manner and under the same terms provided under subdivision 2, or the commissioner may 
48.6 	sell the lands to the highest responsible bidder upon three weeks' published notice of such 
48.7 	sale in a newspaper or other periodical of general circulation in the general area where the 
48.8 	lands are located. All bids may be rejected and new bids received upon like advertisement.

48.9 	Sec. 16. Minnesota Statutes 2016, section 161.44, subdivision 6a, is amended to read:
48.10 		Subd. 6a.Services of licensed real estate broker. If the lands remain unsold after being 
48.11 	offered for sale to the highest bidder are withdrawn from sale under subdivision 6b, the 
48.12 	commissioner may retain the services of a licensed real estate broker to find a buyer. The 
48.13 	sale price may be negotiated by the broker, but must not be less than 90 percent of the 
48.14 	appraised market value as determined by the commissioner. The broker's fee must be 
48.15 	established by prior agreement between the commissioner and the broker, and must not 
48.16 	exceed ten percent of the sale price for sales of $10,000 or more. The broker's fee must be 
48.17 	paid to the broker from the proceeds of the sale.

48.18 	Sec. 17. Minnesota Statutes 2016, section 161.44, is amended by adding a subdivision to 
48.19 	read:
48.20 		Subd. 6b.Unsold lands. If lands remain unsold after being offered for sale to the highest 
48.21 	bidder, the commissioner may offer the remaining lands to any person who agrees to pay 
48.22 	the minimum bid established for the public sale. The sale must continue until all eligible 
48.23 	lands have been sold or the commissioner withdraws the remaining lands from sale. The 
48.24 	lands to be sold must be listed on the department's Unsold Property Inventory list.

48.25 	Sec. 18. Minnesota Statutes 2016, section 162.145, subdivision 2, is amended to read:
48.26 		Subd. 2.Small cities assistance account. A small cities assistance account is created 
48.27 	in the special revenue transportation priorities fund. The account consists of funds as provided 
48.28 	by law, and any other money donated, allotted, transferred, or otherwise provided to the 
48.29 	account. Money in the account may only be expended as provided under this section.

49.1 	Sec. 19. Minnesota Statutes 2016, section 168.013, subdivision 1a, is amended to read:
49.2 		Subd. 1a.Passenger automobile; hearse. (a) On passenger automobiles as defined in 
49.3 	section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax shall be
49.4 	is $10 plus an additional tax equal to 1.25 percent of the base value.
49.5 	(b) Subject to the classification provisions herein, "base value" means the manufacturer's 
49.6 	suggested retail price of the vehicle including destination charge using list price information 
49.7 	published by the manufacturer or determined by the registrar if no suggested retail price 
49.8 	exists, and shall not include the cost of each accessory or item of optional equipment 
49.9 	separately added to the vehicle and the suggested retail price.
49.10 	(c) If the manufacturer's list price information contains a single vehicle identification 
49.11 	number followed by various descriptions and suggested retail prices, the registrar shall 
49.12 	select from those listings only the lowest price for determining base value.
49.13 	(d) If unable to determine the base value because the vehicle is specially constructed, 
49.14 	or for any other reason, the registrar may establish such value upon the cost price to the 
49.15 	purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales 
49.16 	or use tax or any local sales or other local tax.
49.17 	(e) The registrar shall classify every vehicle in its proper base value class as follows:

49.18	FROM
		TO
	
49.19	$
	0
		$ 199.99
	
49.20	$
	200
		$ 399.99
	
49.21 	and thereafter a series of classes successively set in brackets having a spread of $200 
49.22 	consisting of such number of classes as will permit classification of all vehicles.
49.23 	(f) The base value for purposes of this section shall be the middle point between the 
49.24 	extremes of its class.
49.25 	(g) The registrar shall establish the base value, when new, of every passenger automobile 
49.26 	and hearse registered prior to the effective date of Extra Session Laws 1971, chapter 31, 
49.27 	using list price information published by the manufacturer or any nationally recognized 
49.28 	firm or association compiling such data for the automotive industry. If unable to ascertain 
49.29 	the base value of any registered vehicle in the foregoing manner, the registrar may use any 
49.30 	other available source or method. The registrar shall calculate tax using base value 
49.31 	information available to dealers and deputy registrars at the time the application for 
49.32 	registration is submitted. The tax on all previously registered vehicles shall be computed 
50.1 	upon the base value thus determined taking into account the depreciation provisions of 
50.2 	paragraph (h).
50.3 	(h) The annual additional tax must be computed upon a percentage of the base value as 
50.4 	follows: during the first year of vehicle life, upon 100 percent of the base value; for the 
50.5 	second year, 90 percent of such value; for the third year, 80 percent of such value; for the 
50.6 	fourth year, 70 percent of such value; for the fifth year, 60 percent of such value; for the 
50.7 	sixth year, 50 percent of such value; for the seventh year, 40 percent of such value; for the 
50.8 	eighth year, 30 percent of such value; for the ninth year, 20 percent of such value; for the 
50.9 	tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.
50.10 	(i) In no event shall the annual additional tax be less than $25.
50.11 	(j) For any vehicle previously registered in Minnesota and regardless of prior ownership, 
50.12 	the annual additional tax total amount due under this subdivision and subdivision 1m must 
50.13 	not exceed the smallest total amount of annual additional tax previously paid or due on the 
50.14 	vehicle.

50.15 	EFFECTIVE DATE. This section is effective the day following final enactment and 
50.16 	applies to taxes payable for a registration period starting on or after January 1, 2018.

50.17 	Sec. 20. Minnesota Statutes 2016, section 168.013, is amended by adding a subdivision 
50.18 	to read:
50.19 		Subd. 1m.Electric vehicle. In addition to the tax under subdivision 1a, a surcharge of 
50.20 	$75 is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a. 
50.21 	Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision must 
50.22 	be deposited in the highway user tax distribution fund.

50.23 	EFFECTIVE DATE. This section is the day following final enactment and applies for 
50.24 	a registration period starting on or after January 1, 2018.

50.25 	Sec. 21. Minnesota Statutes 2016, section 168.021, subdivision 1, is amended to read:
50.26 		Subdivision 1.Disability plates; application. (a) When a motor vehicle registered under 
50.27 	section 168.017, a motorcycle, a motorized bicycle, a one-ton pickup truck, or a self-propelled 
50.28 	recreational vehicle is owned or primarily operated by a permanently physically disabled 
50.29 	person or a custodial parent or guardian of a permanently physically disabled minor person, 
50.30 	the owner may apply for and secure from the commissioner (1) immediately, a temporary 
50.31 	permit valid for 30 days if the applicant is eligible for the disability plates issued under this 
50.32 	section and (2) two disability plates with attached emblems, one plate to be attached to the 
51.1 	front, and one to the rear of the motor vehicle, truck, or recreational vehicle, or, in the case 
51.2 	of a motorcycle or a motorized bicycle, one disability plate the same size as a regular 
51.3 	motorcycle plate.
51.4 	(b) The commissioner shall not issue more than one plate to the owner of a motorcycle 
51.5 	or a motorized bicycle and not more than one set of plates to any owner of another vehicle 
51.6 	described in paragraph (a) at the same time unless the state Council on Disability approves 
51.7 	the issuance of a second plate or set of plates to an owner.
51.8 	(c) When the owner first applies for the disability plate or plates, the owner must submit 
51.9 	a medical statement in a format approved by the commissioner under section 169.345, or 
51.10 	proof of physical disability provided for in that section.
51.11 	(d) No medical statement or proof of disability is required when an owner applies for a 
51.12 	plate or plates for one or more vehicles listed in paragraph (a) that are specially modified 
51.13 	for and used exclusively by permanently physically disabled persons.
51.14 	(e) The owner of a vehicle listed in paragraph (a) may apply for and secure (i) 
51.15 	immediately, a permit valid for 30 days, if the applicant is eligible to receive the disability 
51.16 	plate or plates issued under this section, and (ii) a disability plate or plates for the vehicle 
51.17 	if:
51.18 	(1) the owner employs a permanently physically disabled person who would qualify for 
51.19 	the disability plate or plates under this section; and
51.20 	(2) the owner furnishes the motor vehicle to the physically disabled person for the 
51.21 	exclusive use of that person in the course of employment.

51.22 	EFFECTIVE DATE. This section is effective January 1, 2018.

51.23 	Sec. 22. Minnesota Statutes 2016, section 168.021, subdivision 2, is amended to read:
51.24 		Subd. 2.Plate design; furnished by commissioner. The commissioner shall design 
51.25 	and furnish two disability plates, or one disability plate for a motorcycle or a motorized 
51.26 	bicycle that is the same size as a regular motorcycle plate, with attached emblem or emblems 
51.27 	to an eligible owner. The emblem must bear the internationally accepted wheelchair symbol, 
51.28 	as designated in section 326B.106, subdivision 9, approximately three inches square. The 
51.29 	emblem must be large enough to be visible plainly from a distance of 50 feet. An applicant 
51.30 	eligible for a disability plate or plates shall pay the motor vehicle registration fee authorized 
51.31 	by sections 168.013 and 168.09.

51.32 	EFFECTIVE DATE. This section is effective January 1, 2018.

52.1 	Sec. 23. Minnesota Statutes 2016, section 168.021, subdivision 2a, is amended to read:
52.2 		Subd. 2a.Plate transfer. (a) When ownership of a vehicle described in subdivision 1, 
52.3 	is transferred, the owner of the vehicle shall remove the disability plate or plates. The buyer 
52.4 	of the motor vehicle is entitled to receive a regular plate or plates for the vehicle without 
52.5 	further cost for the remainder of the registration period.
52.6 	(b) Notwithstanding section 168.12, subdivision 1, the disability plate or plates may be 
52.7 	transferred to a replacement vehicle on notification to the commissioner. However, the 
52.8 	disability plate or plates may not be transferred unless the replacement vehicle (1) is listed 
52.9 	under section 168.012, subdivision 1, and, in case of a single plate for a motorcycle or a 
52.10 	motorized bicycle, the replacement vehicle is a motorcycle or a motorized bicycle, and (2) 
52.11 	is owned or primarily operated by the permanently physically disabled person.

52.12 	EFFECTIVE DATE. This section is effective January 1, 2018.

52.13 	Sec. 24. [168.1256] SPECIAL RETIRED LAW ENFORCEMENT PLATES.
52.14 		Subdivision 1.Issuance of plates. The commissioner shall issue special retired law 
52.15 	enforcement license plates or a single motorcycle plate to an applicant who:
52.16 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
52.17 	truck, motorcycle, or recreational vehicle;
52.18 	(2) is a retired peace officer as defined in section 626.84, subdivision 1, paragraph (c) 
52.19 	or (d);
52.20 	(3) provides a letter from the chief law enforcement officer affirming that the applicant 
52.21 	is a retired peace officer who served ten or more years and separated in good standing;
52.22 	(4) pays a fee of $10 for each set of plates, along with any other fees required by this 
52.23 	chapter;
52.24 	(5) pays the registration tax as required under section 168.013; and
52.25 	(6) complies with this chapter and rules governing registration of motor vehicles and 
52.26 	licensing of drivers.
52.27 		Subd. 2.Design. The commissioner shall design an emblem and inscription for the 
52.28 	special plates, in consultation with interested law enforcement agencies and organizations.
52.29 		Subd. 3.Plates transfer. On application to the commissioner and payment of a transfer 
52.30 	fee of $5, special plates issued under this section may be transferred to another motor vehicle 
52.31 	if the subsequent vehicle is:
53.1 	(1) qualified under subdivision 1, clause (1), to bear the special plates; and
53.2 	(2) registered to the same individual to whom the special plates were originally issued.
53.3 		Subd. 4.Exemption. Special plates issued under this section are not subject to section 
53.4 	168.1293, subdivision 2.

53.5 	EFFECTIVE DATE. This section is effective January 1, 2018, for special retired law 
53.6 	enforcement plates issued on or after that date.

53.7 	Sec. 25. [168.1257] SPECIAL LAW ENFORCEMENT MEMORIAL PLATES.
53.8 		Subdivision 1.Issuance of plates. The commissioner shall issue special law enforcement 
53.9 	memorial license plates or a single motorcycle plate to an applicant who:
53.10 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
53.11 	truck, motorcycle, or recreational vehicle;
53.12 	(2) pays an additional fee of $10 for each set of plates;
53.13 	(3) pays the registration tax as required under section 168.013, along with any other fees 
53.14 	required by this chapter;
53.15 	(4) contributes $25 upon initial application and a minimum of $5 annually to the 
53.16 	Minnesota law enforcement memorial account; and
53.17 	(5) complies with this chapter and rules governing registration of motor vehicles and 
53.18 	licensing of drivers.
53.19 		Subd. 2.Design. The commissioner shall adopt a suitable design for the plate that must 
53.20 	include a black line with a blue line of equal proportion above and below the black line, 
53.21 	representing the thin blue line.
53.22 		Subd. 3.Plates transfer. On application to the commissioner and payment of a transfer 
53.23 	fee of $5, special plates may be transferred to another motor vehicle if the subsequent vehicle 
53.24 	is:
53.25 	(1) qualified under subdivision (1), clause (1), to bear the special plates; and
53.26 	(2) registered to the same individual to whom the special plates were originally issued.
53.27 		Subd. 4.Exemption. Special plates issued under this section are not subject to section 
53.28 	168.1293, subdivision 2.
53.29 		Subd. 5.Fees. Fees collected under subdivision 1, clauses (2) and (3), and subdivision 
53.30 	3 are credited to the vehicle services operating account in the special revenue fund.
54.1 		Subd. 6.Contributions; memorial account; appropriation. Contributions collected 
54.2 	under subdivision 1, clause (4), must be deposited in the Minnesota law enforcement 
54.3 	memorial account, which is established in the special revenue fund. Money in the account 
54.4 	is appropriated to the commissioner of public safety. This appropriation is first for the annual 
54.5 	cost of administering the account funds, and the remaining funds are for distribution to the 
54.6 	Minnesota Law Enforcement Memorial Association, to be used to further the mission of 
54.7 	the association in assisting the families and home agencies of Minnesota law enforcement 
54.8 	officers who have died in the line of duty.

54.9 	EFFECTIVE DATE. This section is effective January 1, 2018, for special law 
54.10 	enforcement memorial plates issued on or after that date.

54.11 	Sec. 26. [168.1294] SPECIAL "START SEEING MOTORCYCLES" PLATES.
54.12 		Subdivision 1.Issuance of plates. The commissioner shall issue special "Start Seeing 
54.13 	Motorcycles" license plates or a single motorcycle plate to an applicant who:
54.14 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
54.15 	truck, motorcycle, or recreational vehicle;
54.16 	(2) pays a fee of $10 for each set of plates;
54.17 	(3) pays the registration tax as required under section 168.013, along with any other fees 
54.18 	required by this chapter;
54.19 	(4) contributes a minimum of $10 annually to the motorcycle safety fund, created under 
54.20 	section 171.06, subdivision 2a, paragraph (a), clause (1); and
54.21 	(5) complies with this chapter and rules governing registration of motor vehicles and 
54.22 	licensing of drivers.
54.23 		Subd. 2.Design. The representatives of American Bikers for Awareness, Training, and 
54.24 	Education of Minnesota shall design the special plate to contain the inscription "Start Seeing 
54.25 	Motorcycles" between the bolt holes on the bottom of the plate with a design area on the 
54.26 	left side of the plate, subject to the approval of the commissioner.
54.27 		Subd. 3.Plates transfer. On application to the commissioner and payment of a transfer 
54.28 	fee of $5, special plates issued under this section may be transferred to another motor vehicle 
54.29 	if the subsequent vehicle is:
54.30 	(1) qualified under subdivision 1, clause (1), to bear the special plates; and
54.31 	(2) registered to the same individual to whom the special plates were originally issued.
55.1 		Subd. 4.Exemption. Special plates issued under this section are not subject to section 
55.2 	168.1293, subdivision 2.
55.3 		Subd. 5.Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are 
55.4 	credited to the vehicle services operating account in the special revenue fund.
55.5 		Subd. 6.No refund. Contributions made under this section must not be refunded.

55.6 	EFFECTIVE DATE. This section is effective January 1, 2018, for special "Start Seeing 
55.7 	Motorcycles" plates issued on or after that date.

55.8 	Sec. 27. Minnesota Statutes 2016, section 168.33, subdivision 2, is amended to read:
55.9 		Subd. 2.Deputy registrars. (a) The commissioner may appoint, and for cause 
55.10 	discontinue, a deputy registrar for any statutory or home rule charter city as the public 
55.11 	interest and convenience may require, without regard to whether the county auditor of the 
55.12 	county in which the city is situated has been appointed as the deputy registrar for the county 
55.13 	or has been discontinued as the deputy registrar for the county, and without regard to whether 
55.14 	the county in which the city is situated has established a county license bureau that issues 
55.15 	motor vehicle licenses as provided in section 373.32.
55.16 	(b) The commissioner may appoint, and for cause discontinue, a deputy registrar for any 
55.17 	statutory or home rule charter city as the public interest and convenience may require, if 
55.18 	the auditor for the county in which the city is situated chooses not to accept appointment 
55.19 	as the deputy registrar for the county or is discontinued as a deputy registrar, or if the county 
55.20 	in which the city is situated has not established a county license bureau that issues motor 
55.21 	vehicle licenses as provided in section 373.32.
55.22 	(c) The commissioner may appoint, and for cause discontinue, the county auditor of 
55.23 	each county as a deputy registrar.
55.24 	(d) Despite any other provision, a person other than a county auditor or a director of a 
55.25 	county license bureau, who was appointed by the registrar before August 1, 1976, as a 
55.26 	deputy registrar for any statutory or home rule charter city, may continue to serve as deputy 
55.27 	registrar and may be discontinued for cause only by the commissioner. The county auditor 
55.28 	who appointed the deputy registrars is responsible for the acts of deputy registrars appointed 
55.29 	by the auditor.
55.30 	(e) Each deputy, before entering upon the discharge of duties, shall take and subscribe 
55.31 	an oath to faithfully discharge the duties and to uphold the laws of the state.
56.1 	(f) If a deputy registrar appointed under this subdivision is not an officer or employee 
56.2 	of a county or statutory or home rule charter city, the deputy shall in addition give bond to 
56.3 	the state in the sum of $10,000, or a larger sum as may be required by the commissioner, 
56.4 	conditioned upon the faithful discharge of duties as deputy registrar.
56.5 	(g) A corporation governed by chapter 302A or 317A may be appointed a deputy registrar. 
56.6 	Upon application by an individual serving as a deputy registrar and the giving of the requisite 
56.7 	bond as provided in this subdivision, personally assured by the individual or another 
56.8 	individual approved by the commissioner, a corporation named in an application then 
56.9 	becomes the duly appointed and qualified successor to the deputy registrar.
56.10 	(h) Each deputy registrar appointed under this subdivision shall keep and maintain office 
56.11 	locations approved by the commissioner for the registration of vehicles and the collection 
56.12 	of taxes and fees on vehicles.
56.13 	(i) The deputy registrar shall keep records and make reports to the commissioner as the 
56.14 	commissioner requires. The records must be maintained at the offices of the deputy registrar.
56.15 	in a manner that complies with sections 13.05, subdivision 5, and 13.055. As an alternative 
56.16 	to paper copy storage, a deputy registrar may retain records and documents in a secure 
56.17 	electronic medium that complies with the security requirements under the United States 
56.18 	Federal Bureau of Investigation, Criminal Justice Information Services Division, Policy 5.4 
56.19 	or any successor policy, provided 60 days have elapsed since the transaction and subject to 
56.20 	standards established by the commissioner. The deputy registrar is responsible for all costs 
56.21 	associated with the conversion to electronic records and maintenance of the electronic 
56.22 	storage medium, including the destruction of existing paper records after conversion to the 
56.23 	electronic format. All queries and responses in the secure electronic medium, and all actions 
56.24 	in which data are entered, updated, accessed, or shared or disseminated by the deputy 
56.25 	registrar must be contained in a data audit trail. Data contained in the audit trail are public 
56.26 	to the extent the data are not otherwise classified under this section. The records and offices 
56.27 	of the deputy registrar must at all times be open to the inspection of the commissioner or 
56.28 	the commissioner's agents. The deputy registrar shall report to the commissioner by the 
56.29 	next working day following receipt all registrations made and taxes and fees collected by 
56.30 	the deputy registrar.
56.31 	(j) The filing fee imposed under subdivision 7 must be deposited in the treasury of the 
56.32 	place for which appointed or, if not a public official, a deputy shall retain the filing fee, but 
56.33 	the registration tax and any additional fees for delayed registration the deputy registrar has 
56.34 	collected the deputy registrar shall deposit by the next working day following receipt in an 
56.35 	approved state depository to the credit of the state through the commissioner of management 
57.1 	and budget. The place for which the deputy registrar is appointed through its governing 
57.2 	body must provide the deputy registrar with facilities and personnel to carry out the duties 
57.3 	imposed by this subdivision if the deputy is a public official. In all other cases, the deputy 
57.4 	shall maintain a suitable facility for serving the public.

57.5 	Sec. 28. Minnesota Statutes 2016, section 168A.09, subdivision 1, is amended to read:
57.6 		Subdivision 1.Application, issuance, form, bond, and notice. (a) In the event a 
57.7 	certificate of title is lost, stolen, mutilated, or destroyed, or becomes illegible, the owner or 
57.8 	legal representative of the owner named in the certificate may make submit an application 
57.9 	to the department or a deputy registrar for a duplicate in a format prescribed by the 
57.10 	department. The department shall or deputy registrar must issue a duplicate certificate of 
57.11 	title if satisfied that the applicant is entitled thereto to the duplicate certificate of title. The 
57.12 	duplicate certificate of title shall must be plainly marked as a duplicate and mailed or 
57.13 	delivered to the owner. The department shall or deputy registrar must indicate in its the 
57.14 	driver and vehicle information system records that a duplicate certificate of title has been 
57.15 	issued. As a condition to issuing a duplicate certificate of title, the department may require 
57.16 	a bond from the applicant in the manner and format prescribed in section 168A.07, 
57.17 	subdivision 1, clause (2). The duplicate certificate of title shall contain the legend: "This 
57.18 	duplicate certificate of title may be subject to the rights of a person under the original 
57.19 	certificate."
57.20 	(b) On and after the effective date of this section, the commissioner must allow duplicate 
57.21 	certificate of title issuance by a deputy registrar subject to procedures established by the 
57.22 	commissioner.

57.23 	EFFECTIVE DATE. This section is effective August 1, 2018.

57.24 	Sec. 29. Minnesota Statutes 2016, section 169.011, is amended by adding a subdivision 
57.25 	to read:
57.26 		Subd. 1a.All-electric vehicle. (a) "All-electric vehicle" means an electric vehicle that 
57.27 	is solely able to be powered by an electric motor drawing current from rechargeable storage 
57.28 	batteries, fuel cells, or other portable sources of electrical current.
57.29 	(b) All-electric vehicle excludes a plug-in hybrid electric vehicle.

57.30 	Sec. 30. Minnesota Statutes 2016, section 169.011, subdivision 34, is amended to read:
57.31 		Subd. 34.Head Start bus. (a) "Head Start bus" means a motor vehicle used to transport 
57.32 	children and parents to or from a Head Start facility, or to or from Head Start-related 
58.1 	activities, by the Head Start grantee, or by someone under an agreement with the Head Start 
58.2 	grantee. A Head Start bus does not include a motor vehicle transporting children or parents 
58.3 	to or from a Head Start facility for which parents or guardians receive direct compensation 
58.4 	from a Head Start grantee, a motor coach operating under charter carrier authority, or a 
58.5 	transit bus providing services as defined in section 174.22, subdivision 7. A Head Start bus 
58.6 	may be a type A, B, C, or D bus or type III vehicle, as described in subdivision 71.
58.7 	(b) A Head Start bus manufactured after December 31, 1994, must meet the same 
58.8 	standards as a type A, B, C, or D school bus, except that a Head Start bus is not required to 
58.9 	be equipped with the warning signals required for a school bus under section 169.442, 
58.10 	subdivision 1. A Head Start bus that is not equipped as a school bus must be painted colors 
58.11 	other than national school bus yellow.

58.12 	Sec. 31. Minnesota Statutes 2016, section 169.18, subdivision 5, is amended to read:
58.13 		Subd. 5.Driving left of roadway center; exception. (a) No vehicle shall be driven to 
58.14 	the left side of the center of the roadway in overtaking and passing another vehicle proceeding 
58.15 	in the same direction unless such left side is clearly visible and is free of oncoming traffic 
58.16 	for a sufficient distance ahead to permit such overtaking and passing to be completely made 
58.17 	without interfering with the safe operation of any vehicle approaching from the opposite 
58.18 	direction or any vehicle overtaken. In every event the overtaking vehicle must return to the 
58.19 	right-hand side of the roadway before coming within 100 feet of any vehicle approaching 
58.20 	from the opposite direction.
58.21 	(b) Except on a one-way roadway, no vehicle shall, in overtaking and passing another 
58.22 	vehicle or at any other time, be driven to the left half of the roadway under the following 
58.23 	conditions:
58.24 	(1) when approaching the crest of a grade or upon a curve in the highway where the 
58.25 	driver's view along the highway is obstructed within a distance of 700 feet;
58.26 	(2) when approaching within 100 feet of any underpass or tunnel, railroad grade crossing, 
58.27 	intersection within a city, or intersection outside of a city if the presence of the intersection 
58.28 	is marked by warning signs; or
58.29 	(3) where official signs are in place prohibiting passing, or a distinctive centerline is 
58.30 	marked, which distinctive line also so prohibits passing, as declared in the Manual on 
58.31 	Uniform Traffic Control Devices adopted by the commissioner.
58.32 	(c) Notwithstanding paragraph (b), clause (3), a motor vehicle may be driven to the left 
58.33 	side of the roadway to safely overtake a bicycle under the following circumstances:
59.1 	(1) the bicycle is proceeding in the same direction as the motor vehicle;
59.2 	(2) the driver of the motor vehicle either (i) provides a safe clearance distance, in no 
59.3 	case less than the greater of three feet or one-half the width of the motor vehicle, or (ii) 
59.4 	completely enters the left lane of the highway;
59.5 	(3) the operator of the bicycle is not (i) making a left turn, or (ii) signaling that the bicycle 
59.6 	operator intends to make a left turn; and
59.7 	(4) the driver of the motor vehicle complies with all other applicable requirements under 
59.8 	this section.

59.9 	Sec. 32. Minnesota Statutes 2016, section 169.345, subdivision 1, is amended to read:
59.10 		Subdivision 1.Scope of privilege. (a) A vehicle described in section 168.021, subdivision 
59.11 	1, paragraph (a), that prominently displays the certificate authorized by this section or that 
59.12 	bears the disability plate or plates issued under section 168.021 may be parked by or solely 
59.13 	for the benefit of a physically disabled person:
59.14 	(1) in a designated parking space for disabled persons, as provided in section 169.346;
59.15 	(2) in a metered parking space without obligation to pay the meter fee and without time 
59.16 	restrictions unless time restrictions are separately posted on official signs; and
59.17 	(3) without time restrictions in a nonmetered space where parking is otherwise allowed 
59.18 	for passenger vehicles but restricted to a maximum period of time and that does not 
59.19 	specifically prohibit the exercise of disabled parking privileges in that space.
59.20 	A person may park the vehicle for a physically disabled person in a parking space described 
59.21 	in clause (1) or (2) only when actually transporting the physically disabled person for the 
59.22 	sole benefit of that person and when the parking space is within a reasonable distance from 
59.23 	the drop-off point.
59.24 	(b) For purposes of this subdivision, a certificate is prominently displayed if it is displayed 
59.25 	so that it may be viewed from the front and rear of the motor vehicle by hanging it from the 
59.26 	rearview mirror attached to the front windshield of the motor vehicle or, in the case of a 
59.27 	motorcycle or a motorized bicycle, is secured to the vehicle. If there is no rearview mirror 
59.28 	or if the certificate holder's disability precludes placing the certificate on the mirror, the 
59.29 	certificate must be displayed on the dashboard of the vehicle. No part of the certificate may 
59.30 	be obscured.
59.31 	(c) Notwithstanding paragraph (a), clauses (1), (2), and (3), this section does not permit 
59.32 	parking in areas prohibited by sections 169.32 and 169.34, in designated no parking spaces, 
60.1 	or in parking spaces reserved for specified purposes or vehicles. A local governmental unit 
60.2 	may, by ordinance, prohibit parking on any street or highway to create a fire lane, or to 
60.3 	accommodate heavy traffic during morning and afternoon rush hours and these ordinances 
60.4 	also apply to physically disabled persons.

60.5 	EFFECTIVE DATE. This section is effective January 1, 2018.

60.6 	Sec. 33. Minnesota Statutes 2016, section 169.345, subdivision 3, is amended to read:
60.7 		Subd. 3.Identifying certificate. (a) The commissioner shall issue (1) immediately, a 
60.8 	permit valid for 30 days if the person is eligible for the certificate issued under this section 
60.9 	and (2) an identifying certificate for a vehicle described in section 168.021, subdivision 1, 
60.10 	paragraph (a), when a physically disabled applicant submits proof of physical disability 
60.11 	under subdivision 2a. The commissioner shall design separate certificates for persons with 
60.12 	permanent and temporary disabilities that can be readily distinguished from each other from 
60.13 	outside a vehicle at a distance of 25 feet or, in the case of a motorcycle or a motorized 
60.14 	bicycle, can be readily secured to the motorcycle or motorized bicycle. An applicant may 
60.15 	be issued up to two certificates if the applicant has not been issued disability plates under 
60.16 	section 168.021.
60.17 	(b) The operator of a vehicle displaying a certificate has the parking privileges provided 
60.18 	in subdivision 1 only while the vehicle is actually parked while transporting a physically 
60.19 	disabled person.
60.20 	(c) The commissioner shall cancel all certificates issued to an applicant who fails to 
60.21 	comply with the requirements of this subdivision.

60.22 	EFFECTIVE DATE. This section is effective January 1, 2018.

60.23 	Sec. 34. Minnesota Statutes 2016, section 169.444, subdivision 2, is amended to read:
60.24 		Subd. 2.Violations by drivers; penalties. (a) A person who fails to stop a vehicle or 
60.25 	to keep it stopped, as required in subdivision 1, or who violates subdivision 1a, is guilty of 
60.26 	a misdemeanor punishable by a fine of not less than $300 $500.
60.27 	(b) A person is guilty of a gross misdemeanor if the person fails to stop a motor vehicle 
60.28 	or to keep it stopped, as required in subdivision 1, or who violates subdivision 1a, and 
60.29 	commits either or both of the following acts:
60.30 	(1) passes or attempts to pass the school bus in a motor vehicle on the right-hand, 
60.31 	passenger-door side of the bus; or
61.1 	(2) passes or attempts to pass the school bus in a motor vehicle when a school child is 
61.2 	outside of and on the street or highway used by the school bus or on the adjacent sidewalk.

61.3 	EFFECTIVE DATE. This section is effective August 1, 2017, and applies to violations 
61.4 	committed on and after that date.

61.5 	Sec. 35. Minnesota Statutes 2016, section 169.449, subdivision 1, is amended to read:
61.6 		Subdivision 1.Rules. The commissioner of public safety shall adopt rules governing 
61.7 	the operation of school buses used for transportation of school children, when owned or 
61.8 	operated by a school or privately owned and operated under a contract with a school, and 
61.9 	these rules must be made a part of that contract by reference. Each school, its officers and 
61.10 	employees, and each person employed under the contract is subject to these rules.

61.11 	Sec. 36. [169.8295] WEIGHT LIMITS; VEHICLES TRANSPORTING MILK.
61.12 		Subdivision 1.Weight limits increase. (a) The weight limitations under sections 169.823 
61.13 	to 169.829 are increased by ten percent for a single-unit vehicle transporting fluid milk from 
61.14 	the point of production to:
61.15 	(1) another point of production for additional loading; or
61.16 	(2) the point of first processing.
61.17 	(b) Notwithstanding sections 169.824, subdivision 1, paragraph (d); 169.826, subdivision 
61.18 	3; or other law to the contrary, a permit is not required to operate a vehicle under this section.
61.19 	(c) The seasonal weight increases under section 169.826, subdivision 1, do not apply to 
61.20 	a vehicle operated under this section.
61.21 		Subd. 2.Requirements; restrictions. A vehicle operated under this section:
61.22 	(1) is subject to seasonal load restrictions under section 169.87, except as otherwise 
61.23 	provided under section 169.87, subdivision 4;
61.24 	(2) is subject to bridge load limits posted under section 169.84; and
61.25 	(3) must not be operated with a load that exceeds the tire manufacturer's recommended 
61.26 	load, the manufacturer's gross vehicle weight rating as affixed to the vehicle, or other 
61.27 	certification of gross vehicle weight rating under Code of Federal Regulations, title 49, 
61.28 	sections 567.4 to 567.7.

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

62.1 	Sec. 37. Minnesota Statutes 2016, section 169.865, subdivision 3, is amended to read:
62.2 		Subd. 3.Requirements; restrictions. (a) A vehicle or combination of vehicles operating 
62.3 	under this section:
62.4 	(1) is subject to axle weight limitations under section 169.824, subdivision 1;
62.5 	(2) is subject to seasonal load restrictions under section 169.87;
62.6 	(3) is subject to bridge load limits posted under section 169.84;
62.7 	(4) may only be operated on paved streets and highways other than interstate highways;
62.8 	(5) may not be operated with loads that exceed the manufacturer's gross vehicle weight 
62.9 	rating as affixed to the vehicle, or other certification of gross vehicle weight rating complying 
62.10 	with Code of Federal Regulations, title 49, sections 567.4 to 567.7;
62.11 	(6) must be issued a permit from each road authority having jurisdiction over a road on 
62.12 	which the vehicle is operated, if required;
62.13 	(7) must comply with the requirements of section 169.851, subdivision 4; and
62.14 	(8) must have brakes on all wheels.
62.15 	(b) The percentage allowances for exceeding gross weights if transporting unfinished 
62.16 	forest products under section 168.013, subdivision 3, paragraph (b), or for the first haul of 
62.17 	unprocessed or raw farm products or unfinished forest products under section 168.013, 
62.18 	subdivision 3, paragraph (d), clause (3), do not apply to a vehicle or combination of vehicles 
62.19 	operated under this section.
62.20 	(c) Notwithstanding paragraph (a), clause (4), a vehicle or combination of vehicles 
62.21 	hauling fluid milk under a permit issued by the commissioner of transportation may also 
62.22 	operate on interstate highways as provided under United States Code, title 23, section 127.

62.23 	Sec. 38. [169.869] SPECIAL CONSTRUCTION MATERIALS PERMIT.
62.24 		Subdivision 1.Definition. For purposes of this section, "construction materials" means 
62.25 	highway construction materials, building construction materials, and associated demolition 
62.26 	materials, including but not limited to aggregate material as defined in section 298.75, 
62.27 	subdivision 1, paragraph (a), hot mix asphalt, plastic concrete, cementitious materials, 
62.28 	concrete admixtures, asphalt cement, construction demolition materials, and recycled road 
62.29 	materials.
63.1 		Subd. 2.Six-axle vehicles. (a) The commissioner of transportation may issue an annual 
63.2 	permit authorizing a vehicle or combination of vehicles with a total of six or more axles to 
63.3 	haul construction materials and be operated with a gross vehicle weight of up to:
63.4 	(1) 90,000 pounds; and
63.5 	(2) 99,000 pounds during the period set by the commissioner under section 169.826, 
63.6 	subdivision 1.
63.7 	(b) The fee for a permit issued under this subdivision is $300, or a proportional amount 
63.8 	as provided in section 169.86, subdivision 5.
63.9 		Subd. 3.Seven-axle vehicles. (a) The commissioner of transportation may issue an 
63.10 	annual permit authorizing a vehicle or combination of vehicles with a total of seven or more 
63.11 	axles to haul construction materials and be operated with a gross vehicle weight of up to:
63.12 	(1) 97,000 pounds; and
63.13 	(2) 99,000 pounds during the period set by the commissioner under section 169.826, 
63.14 	subdivision 1.
63.15 	(b) The fee for a permit issued under this subdivision is $500, or a proportional amount 
63.16 	as provided in section 169.86, subdivision 5.
63.17 		Subd. 4.Authority; restrictions. (a) A permit issued by the commissioner under this 
63.18 	section is valid for operation on highways regardless of jurisdiction, subject to paragraph 
63.19 	(b).
63.20 	(b) A vehicle or combination of vehicles operating under this section:
63.21 	(1) may only be operated on paved or unpaved streets and highways, other than interstate 
63.22 	highways;
63.23 	(2) must comply with the requirements and restrictions in section 169.865, subdivision 
63.24 	3, paragraph (a), clauses (1) to (3), (5), (7), and (8); and
63.25 	(3) must be operated in compliance with truck route requirements and vehicle weight 
63.26 	restrictions, as established under section 169.87, subdivision 1, by a local road authority or 
63.27 	the commissioner.
63.28 		Subd. 5.Revenues. Revenue from the permits issued by the commissioner under this 
63.29 	section must be deposited in the town bridge account. Revenue deposited under this 
63.30 	subdivision is available to inspect and post weight limits for town bridges.
64.1 		Subd. 6.Expiration date. Upon request of the permit applicant, the expiration date for 
64.2 	a permit issued under this section must be the same as the expiration date of the permitted 
64.3 	vehicle's registration.
64.4 		Subd. 7.Permit information. The commissioner must make information available to 
64.5 	local road authorities on an Internet Web site that identifies permit issuances under this 
64.6 	section and the counties in which a vehicle with a permit is intended to be operated.
64.7 		Subd. 8.Local preferred routes. A local road authority may identify local preferred 
64.8 	routes for operating a vehicle on local streets and highways under a permit issued in this 
64.9 	section. A holder of a permit issued in this section and any person seeking to apply for a 
64.10 	permit are encouraged to:
64.11 	(1) upon request of a local road authority, provide comment on identification of preferred 
64.12 	routes; and
64.13 	(2) make reasonable efforts to operate a vehicle on the preferred routes when operating 
64.14 	under the permit.

64.15 	EFFECTIVE DATE. This section is effective January 1, 2018.

64.16 	Sec. 39. Minnesota Statutes 2016, section 171.02, subdivision 2b, is amended to read:
64.17 		Subd. 2b.Exception for type III vehicle drivers. (a) Notwithstanding subdivision 2, 
64.18 	the holder of a class A, B, C, or D driver's license, without a school bus endorsement, may 
64.19 	operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h), under 
64.20 	the conditions in paragraphs (b) through (o) this subdivision.
64.21 	(b) The operator is an employee of the entity that owns, leases, or contracts for the school 
64.22 	bus.
64.23 	(c) The operator's employer has adopted and implemented a policy that provides for 
64.24 	annual training and certification of the operator in:
64.25 	(1) safe operation of a type III vehicle;
64.26 	(2) understanding student behavior, including issues relating to students with disabilities;
64.27 	(3) encouraging orderly conduct of students on the bus and handling incidents of 
64.28 	misconduct appropriately;
64.29 	(4) knowing and understanding relevant laws, rules of the road, and local school bus 
64.30 	safety policies;
64.31 	(5) handling emergency situations;
65.1 	(6) proper use of seat belts and child safety restraints;
65.2 	(7) performance of pretrip vehicle inspections;
65.3 	(8) safe loading and unloading of students, including, but not limited to:
65.4 	(i) utilizing a safe location for loading and unloading students at the curb, on the nontraffic 
65.5 	side of the roadway, or at off-street loading areas, driveways, yards, and other areas to 
65.6 	enable the student to avoid hazardous conditions;
65.7 	(ii) refraining from loading and unloading students in a vehicular traffic lane, on the 
65.8 	shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;
65.9 	(iii) avoiding a loading or unloading location that would require a pupil to cross a road, 
65.10 	or ensuring that the driver or an aide personally escort the pupil across the road if it is not 
65.11 	reasonably feasible to avoid such a location;
65.12 	(iv) placing the type III vehicle in "park" during loading and unloading; and
65.13 	(v) escorting a pupil across the road under item (iii) only after the motor is stopped, the 
65.14 	ignition key is removed, the brakes are set, and the vehicle is otherwise rendered immobile; 
65.15 	and
65.16 	(9) compliance with paragraph (k), concerning reporting certain convictions to the 
65.17 	employer within ten days of the date of conviction.
65.18 	(d) A background check or background investigation of the operator has been conducted 
65.19 	that meets the requirements under section 122A.18, subdivision 8, or 123B.03 for school 
65.20 	district employees; section 144.057 or chapter 245C for day care employees; or section 
65.21 	171.321, subdivision 3, for all other persons operating a type III vehicle under this 
65.22 	subdivision.
65.23 	(e) Operators shall submit to a physical examination as required by section 171.321, 
65.24 	subdivision 2.
65.25 	(f) The operator's employer requires preemployment drug testing of applicants for 
65.26 	operator positions. Current operators must comply with the employer's policy under section 
65.27 	181.951, subdivisions 2, 4, and 5. Notwithstanding any law to the contrary, the operator's 
65.28 	employer may use a Breathalyzer or similar device to fulfill random alcohol testing 
65.29 	requirements.
65.30 	(g) The operator's driver's license is verified annually by the entity that owns, leases, or 
65.31 	contracts for the type III vehicle as required under section 171.321, subdivision 5.
66.1 	(h) A person who sustains a conviction, as defined under section 609.02, of violating 
66.2 	section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked under 
66.3 	sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of violating 
66.4 	or whose driver's license is revoked under a similar statute or ordinance of another state, is 
66.5 	precluded from operating a type III vehicle for five years from the date of conviction.
66.6 	(i) A person who has ever been convicted of a disqualifying offense as defined in section 
66.7 	171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under this 
66.8 	subdivision.
66.9 	(j) A person who sustains a conviction, as defined under section 609.02, of a moving 
66.10 	offense in violation of chapter 169 within three years of the first of three other moving 
66.11 	offenses is precluded from operating a type III vehicle for one year from the date of the last 
66.12 	conviction.
66.13 	(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) while 
66.14 	employed by the entity that owns, leases, or contracts for the school bus, shall report the 
66.15 	conviction to the employer within ten days of the date of the conviction.
66.16 	(l) An operator of a type III vehicle whose driver's license is suspended, revoked, 
66.17 	canceled, or disqualified by Minnesota, another state, or another jurisdiction must notify 
66.18 	the operator's employer in writing of the suspension, revocation, cancellation, lost privilege, 
66.19 	or disqualification. The operator must notify the operator's employer before the end of the 
66.20 	business day immediately following the day the operator received notice of the suspension, 
66.21 	revocation, cancellation, lost privilege, or disqualification.
66.22 	(m) Students riding the type III vehicle must have training required under section 
66.23 	123B.90, subdivision 2.
66.24 	(m) (n) Documentation of meeting the requirements listed in this subdivision must be 
66.25 	maintained under separate file at the business location for each type III vehicle operator. 
66.26 	The business manager, school board, governing body of a nonpublic school, or any other 
66.27 	entity that owns, leases, or contracts for the type III vehicle operating under this subdivision 
66.28 	is responsible for maintaining these files for inspection.
66.29 	(n) (o) The type III vehicle must bear a current certificate of inspection issued under 
66.30 	section 169.451.
66.31 	(o) (p) An employee of a school or of a school district, who is not employed for the sole 
66.32 	purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).

67.1 	Sec. 40. Minnesota Statutes 2016, section 171.06, subdivision 2a, is amended to read:
67.2 		Subd. 2a.Two-wheeled vehicle endorsement fee. (a) The fee for any duplicate driver's 
67.3 	license obtained for the purpose of adding a two-wheeled vehicle endorsement is increased 
67.4 	by $18.50 for each first such duplicate license and $13 for each renewal thereof. The 
67.5 	additional fee must be paid into the state treasury and credited as follows:
67.6 	(1) $11 of the additional fee for each first duplicate license, and $7 of the additional fee 
67.7 	for each renewal, must be credited to the motorcycle safety fund, which is hereby created; 
67.8 	provided that ten percent of fee receipts in excess of $750,000 in a fiscal year must be 
67.9 	credited to the general fund.
67.10 	(2) The remainder of the additional fee must be credited to the general fund.
67.11 	(b) All application forms prepared by the commissioner for two-wheeled vehicle 
67.12 	endorsements must clearly state the amount of the total fee that is dedicated to the motorcycle 
67.13 	safety fund.

67.14 	Sec. 41. Minnesota Statutes 2016, section 171.061, subdivision 3, is amended to read:
67.15 		Subd. 3.Application. An applicant may file an application with an agent. The agent 
67.16 	shall receive and accept applications in accordance with the laws and rules of the Department 
67.17 	of Public Safety for a driver's license, restricted license, duplicate license, instruction permit, 
67.18 	Minnesota identification card, or motorized bicycle operator's permit. Application records 
67.19 	must be maintained at the office of the agent in a manner that complies with sections 13.05, 
67.20 	subdivision 5, and 13.055. As an alternative to paper copy storage, an agent may retain 
67.21 	records and documents in a secure electronic medium that complies with the security 
67.22 	requirements under the United States Federal Bureau of Investigation, Criminal Justice 
67.23 	Information Services Division, Policy 5.4 or any successor policy, provided 60 days have 
67.24 	elapsed since the transaction and subject to standards established by the commissioner. The 
67.25 	agent is responsible for all costs associated with the conversion to electronic records and 
67.26 	maintenance of the electronic storage medium, including the destruction of existing paper 
67.27 	records after conversion to the electronic format. All queries and responses in the secure 
67.28 	electronic medium, and all actions in which data are entered, updated, accessed, or shared 
67.29 	or disseminated by the agent must be contained in a data audit trail. Data contained in the 
67.30 	audit trail are public to the extent the data are not otherwise classified under this section.

68.1 	Sec. 42. Minnesota Statutes 2016, section 171.12, subdivision 6, is amended to read:
68.2 		Subd. 6.Certain convictions not recorded. (a) Except as provided in paragraph (c), 
68.3 	the department shall not keep on the record of a driver any conviction for a violation of a 
68.4 	speed limit of 55 miles per hour unless the violation consisted of a speed greater than ten 
68.5 	miles per hour in excess of the speed limit.
68.6 	(b) Except as provided in paragraph (c), the department shall not keep on the record of 
68.7 	a driver any conviction for a violation of a speed limit of 60 miles per hour unless the 
68.8 	violation consisted of a speed greater than:
68.9 	(1) ten miles per hour in excess of the speed limit, for any violation occurring on or after 
68.10 	August 1, 2012, and before August 1, 2014; or
68.11 	(2) five miles per hour in excess of the speed limit, for any violation occurring on or 
68.12 	after August 1, 2014.
68.13 	(c) This subdivision does not apply to (1) a violation that occurs in a commercial motor 
68.14 	vehicle, or (2) a violation committed by a holder of a class A, B, or C commercial driver's 
68.15 	license or commercial driver learner's permit, without regard to whether the violation was 
68.16 	committed in a commercial motor vehicle or another vehicle.

68.17 	Sec. 43. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
68.18 	read:
68.19 		Subd. 7a.Abandoned and discontinued. "Abandoned and discontinued" means an 
68.20 	outdoor advertising device that ceases to display advertising copy for a minimum of one 
68.21 	year and is not otherwise being actively marketed to display advertising copy.

68.22 	Sec. 44. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
68.23 	read:
68.24 		Subd. 17a.Conforming. "Conforming" means an outdoor advertising device that 
68.25 	complies with the requirements of this chapter.

68.26 	Sec. 45. Minnesota Statutes 2016, section 173.02, subdivision 18, is amended to read:
68.27 		Subd. 18.Commercial or industrial activity. (a) "Commercial or industrial activity" 
68.28 	for the purposes of unzoned commercial or industrial areas means an activity generally 
68.29 	recognized as commercial or industrial by zoning authorities in this state, except that.
68.30 	(b) None of the following activities shall be considered commercial or industrial:
69.1 	(1) outdoor advertising devices.;
69.2 	(2) agricultural, forestry, ranching, grazing, farming and related activities, including, 
69.3 	but not limited to, temporary wayside fresh produce stands.;
69.4 	(3) transient or temporary activities.;
69.5 	(4) activities not visible from the main-traveled way.;
69.6 	(5) activities more than 660 feet from the nearest edge of the right-of-way.;
69.7 	(6) activities conducted in a building principally used as a residence.;
69.8 	(7) railroad tracks and minor sidings.;
69.9 	(8) advertising located on vehicles or tractor trailers;
69.10 	(9) commercial establishments or businesses that have ceased to exist or operate; or
69.11 	(10) a business created to install new outdoor advertising devices.

69.12 	Sec. 46. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
69.13 	read:
69.14 		Subd. 21a.Nonconforming. "Nonconforming" means an outdoor advertising device 
69.15 	that was lawfully erected and has been maintained lawfully but does not comply with the 
69.16 	requirements of this chapter. A nonconforming sign is one that remains in substantially the 
69.17 	same condition it was on the effective date of this chapter.

69.18 	Sec. 47. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
69.19 	read:
69.20 		Subd. 21b.Off-premise "Off-premise" means an outdoor advertising device that 
69.21 	advertises or pertains to any business, product, person, activity, event, or service that is not 
69.22 	primarily conducted, sold, manufactured, offered, or located on the property where the sign 
69.23 	is located.

69.24 	Sec. 48. Minnesota Statutes 2016, section 173.02, subdivision 23, is amended to read:
69.25 		Subd. 23.Scenic area. "Scenic area" means an area within which control and regulation 
69.26 	of the erection and maintenance of advertising devices may be exercised to the extent herein 
69.27 	provided and such areas shall include only those established as such by the commissioner 
69.28 	of transportation. Scenic area includes a scenic byway under United States Code, title 23, 
69.29 	section 162.

70.1 	Sec. 49. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
70.2 	read:
70.3 		Subd. 23a.Scenic byways. "Scenic byways" means roads that recognize outstanding 
70.4 	scenic, cultural, historic, natural, recreational, and archaeological qualities and landscapes 
70.5 	pursuant to United States Code, title 23, section 162.

70.6 	Sec. 50. Minnesota Statutes 2016, section 173.06, subdivision 1, is amended to read:
70.7 		Subdivision 1.Authority. The commissioner of transportation shall must adopt and 
70.8 	may modify, amend, or repeal rules governing the issuance of permits or renewals thereof 
70.9 	for the erection and maintenance of legal nonconforming advertising devices within scenic 
70.10 	areas; provided that the commissioner shall not adopt, modify, amend, or repeal any rule 
70.11 	that will impair any agreement with between the state and the federal government under 
70.12 	this chapter. The commissioner of transportation may limit the application of any rule 
70.13 	adopted by the commissioner to exclude or include in whole or in part, specified areas within 
70.14 	the scenic area based upon use, nature of the surrounding community, or such other factors 
70.15 	as may make separate classification or rule necessary or desirable.

70.16 	Sec. 51. Minnesota Statutes 2016, section 173.07, subdivision 1, is amended to read:
70.17 		Subdivision 1.Forms; content. Application for permits or renewals thereof for the 
70.18 	placement and maintenance of advertising devices within scenic areas shall must be on 
70.19 	forms prescribed by the commissioner and shall contain such information as the commissioner 
70.20 	may require. No advertising device shall be placed without the consent of the owner or 
70.21 	occupant of the land, and adequate proof of such consent shall be submitted to the 
70.22 	commissioner at the time application is made for such permits or renewals. A permit is 
70.23 	required to access state right-of-way to maintain an advertising device.

70.24 	Sec. 52. Minnesota Statutes 2016, section 173.08, is amended by adding a subdivision to 
70.25 	read:
70.26 		Subd. 3.Seed sign exemption. Crop varietal and seed corn signs adjacent to interstate 
70.27 	and primary highways may be erected if the device:
70.28 	(1) is located on demonstration plats;
70.29 	(2) is located on private property;
70.30 	(3) does not violate section 160.27 or 160.2715; and
70.31 	(4) does not reference an off-site address where the product may be sold.

71.1 	Sec. 53. Minnesota Statutes 2016, section 173.08, is amended by adding a subdivision to 
71.2 	read:
71.3 		Subd. 4.Violations; removal. The Department of Transportation may remove signs 
71.4 	that violate this section using the removal procedures under section 173.13, subdivision 11.

71.5 	Sec. 54. Minnesota Statutes 2016, section 173.13, subdivision 11, is amended to read:
71.6 		Subd. 11.Removal of advertising device for noncompliance. Advertising devices 
71.7 	erected or maintained after June 8, 1971, not complying with Laws 1971, chapter 883, and 
71.8 	not otherwise by Laws 1971, chapter 883, permitted to standthis chapter may be removed 
71.9 	by the commissioner upon 60 days prior written notice by certified mail to the owner thereof
71.10 	of the advertising device and to the owner of the real property on which suchthe advertising 
71.11 	device is located, provided that. No notice shall be is required to be given to the owner of 
71.12 	an advertising device whose name is not stated upon the advertising device or the structure 
71.13 	on which it is displayed, unless the name of such the owner is otherwise reasonably known 
71.14 	to the commissioner. The owner of the removed device is liable to the state for the costs of 
71.15 	removal. The period of such notice shall be is computed from the date of mailing. to both 
71.16 	the owner of the advertising device and the owner of the real property where the device is 
71.17 	located. The department must store a removed outdoor advertising device for a minimum 
71.18 	of 30 days prior to disposal. If the outdoor advertising device is not retrieved by the owner 
71.19 	within 30 days of removal, the department may dispose of the outdoor advertising device. 
71.20 	The state is not liable for trespass actions or sign costs for outdoor advertising devices 
71.21 	removed under this subdivision if proper notice has been served.

71.22 	Sec. 55. [173.155] CHANGEABLE ELECTRONIC VARIABLE MESSAGE SIGNS.
71.23 		Subdivision 1.Definition. For the purposes of this section, "changeable electronic 
71.24 	variable message sign" or "CEVMS" means an outdoor advertising device that contains 
71.25 	light-emitting diodes or other technology to display copy visible during the day and during 
71.26 	the night, with the copy changes initiated electronically.
71.27 		Subd. 2.Prohibition. Intermittent, animated, scrolling, full-motion video elements, or 
71.28 	moving lights are prohibited on outdoor advertising devices, including CEVMS.
71.29 		Subd. 3.Exceptions. (a) Notwithstanding subdivision 2, a CEVMS is permissible if:
71.30 	(1) the message does not change more frequently than once every six seconds;
71.31 	(2) the transition between messages or copy does not exceed two seconds in duration;
72.1 	(3) the message brightness does not exceed 0.3 foot-candles over ambient light, as 
72.2 	measured using a foot candle meter from the following distances:
72.3 	(i) for signs with a nominal face size of 12 feet by 25 feet, from 150 feet;
72.4 	(ii) for signs with a nominal face size of ten feet, six inches, by 36 feet, from 200 feet; 
72.5 	and
72.6 	(iii) for signs with a nominal face size of 14 feet by 48 feet, from 250 feet; and
72.7 	(4) the sign must not cause beams or rays of light to be directed at the traveled way if 
72.8 	the light is of such intensity or brilliance as to cause glare that impairs the vision of the 
72.9 	driver of a motor vehicle, or interfere with any driver's operation of a motor vehicle.
72.10 	(b) The brightness measurement under paragraph (a), clause (3), must be conducted at 
72.11 	least 30 minutes after sunset or at least 30 minutes before sunrise. Each CEVMS must have 
72.12 	automatic dimming technology that adjusts the device's brightness levels in response to 
72.13 	changes in ambient light.

72.14 	Sec. 56. Minnesota Statutes 2016, section 173.16, is amended by adding a subdivision to 
72.15 	read:
72.16 		Subd. 6.Stationary structure. Advertising devices must:
72.17 	(1) be stationary;
72.18 	(2) be immobile;
72.19 	(3) not have wheels; and
72.20 	(4) be incapable of relocation without a permit.

72.21 	Sec. 57. Minnesota Statutes 2016, section 173.16, is amended by adding a subdivision to 
72.22 	read:
72.23 		Subd. 7.Permanent business. (a) A business that is located in an unzoned commercial 
72.24 	and industrial area must be in existence for at least three months before a permit may be 
72.25 	issued. An outdoor advertising device erected prior to receiving a permit is subject to 
72.26 	removal.
72.27 	(b) A commercial establishment may demonstrate evidence of its existence by having 
72.28 	a Web site, a telephone number that is answered or has an answering machine identifying 
72.29 	the business, a storefront, pictorial evidence of the business, a building permit, or a lease.

73.1 	Sec. 58. [173.265] OUTDOOR ADVERTISING DEVICES; REMOVAL; 
73.2 	MAINTENANCE.
73.3 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
73.4 	the meanings given them.
73.5 	(b) "Destroyed" means that more than 50 percent of a nonconforming outdoor advertising 
73.6 	device's upright supports are physically damaged to a degree that normal repair practices 
73.7 	would require replacement of broken wooden supports or replacement of broken, bent, or 
73.8 	twisted supports for metal sign structures.
73.9 	(c) "Reasonable repair and maintenance" means customary maintenance and change of 
73.10 	a sign's copy or message, and includes replacement of existing light fixtures with energy 
73.11 	efficient fixtures or installation of other energy efficiency improvements. Reasonable repair 
73.12 	and maintenance does not include:
73.13 	(1) the addition of illumination;
73.14 	(2) repair, reinstallation, erection, or maintenance for outdoor advertising devices that 
73.15 	are destroyed, as defined under paragraph (b);
73.16 	(3) enlarging the nonconforming device;
73.17 	(4) changing the device from a wood structure to a steel or concrete structure; or
73.18 	(5) any change that would terminate nonconforming status.
73.19 	(d) "Substantial change" means any action that does not constitute reasonable repair and 
73.20 	maintenance.
73.21 		Subd. 2.Application. This section applies only to outdoor advertising devices subject 
73.22 	to state and federal regulation under United States Code, title 23, section 131, and any 
73.23 	regulations adopted under that law.
73.24 		Subd. 3.Removal. The department may remove a destroyed, abandoned, or discontinued 
73.25 	outdoor advertising device, subject to the limitations provided under this chapter.
73.26 		Subd. 4.Reasonable repair and maintenance. (a) The owner of an outdoor advertising 
73.27 	device may perform reasonable repair and maintenance on any device, provided the device 
73.28 	is not destroyed.
73.29 	(b) Any action not constituting reasonable repair and maintenance will subject the outdoor 
73.30 	advertising device to immediate removal under subdivision 3.
74.1 		Subd. 5.Substantial change. Substantial changes to outdoor advertising devices are 
74.2 	prohibited. A substantial change to a nonconforming outdoor advertising device will subject 
74.3 	the sign to immediate removal under subdivision 3.

74.4 	Sec. 59. Minnesota Statutes 2016, section 174.03, subdivision 1a, is amended to read:
74.5 		Subd. 1a.Revision of statewide multimodal transportation plan. (a) The commissioner 
74.6 	shall must revise the statewide multimodal transportation plan by January 15, 2013 2022, 
74.7 	and by January 15 of every four five years thereafter. Before final adoption of a revised 
74.8 	plan, the commissioner shall must hold a hearing to receive public comment on the 
74.9 	preliminary draft of the revised plan.
74.10 	(b) Each revised statewide multimodal transportation plan must:
74.11 	(1) incorporate the goals of the state transportation system in section 174.01;
74.12 	(2) establish objectives, policies, and strategies for achieving those goals; and
74.13 	(3) identify performance targets for measuring progress and achievement of transportation 
74.14 	system goals, objectives, or policies.

74.15 	Sec. 60. Minnesota Statutes 2016, section 174.03, subdivision 1c, is amended to read:
74.16 		Subd. 1c.Statewide highway 20-year capital investment plan. By January 15, 2013, 
74.17 	and in conjunction with Within one year of each future revision of the statewide multimodal 
74.18 	transportation plan under subdivision 1a, the commissioner shall must prepare a 20-year 
74.19 	statewide highway capital investment plan that:
74.20 	(1) incorporates performance measures and targets for assessing progress and achievement 
74.21 	of the state's transportation goals, objectives, and policies identified in this chapter for the 
74.22 	state trunk highway system, and those goals, objectives, and policies established in the 
74.23 	statewide multimodal transportation plan. Performance targets must be based on objectively 
74.24 	verifiable measures, and address, at a minimum, preservation and maintenance of the 
74.25 	structural condition of state highway bridges and pavements, safety, and mobility;
74.26 	(2) summarizes trends and impacts for each performance target over the past five years;
74.27 	(3) summarizes the amount and analyzes the impact of the department's capital 
74.28 	investments and priorities over the past five years on each performance target, including a 
74.29 	comparison of prior plan projected costs with actual costs;
74.30 	(4) identifies the investments required to meet the established performance targets over 
74.31 	the next 20-year period;
75.1 	(5) projects available state and federal funding over the 20-year period, including any 
75.2 	unique, competitive, time-limited, or focused funding opportunities;
75.3 	(6) identifies strategies to ensure the most efficient use of existing transportation 
75.4 	infrastructure, and to maximize the performance benefits of projected available funding;
75.5 	(7) establishes investment priorities for projected funding, including a schedule of major 
75.6 	projects or improvement programs for the 20-year period together with projected costs and 
75.7 	impact on performance targets; and
75.8 	(8) identifies those performance targets identified under clause (1) not expected to meet 
75.9 	the target outcome over the 20-year period together with alternative strategies that could 
75.10 	be implemented to meet the targets.

75.11 	Sec. 61. Minnesota Statutes 2016, section 174.03, is amended by adding a subdivision to 
75.12 	read:
75.13 		Subd. 1e.Capacity and major highway projects; planning and programming. (a) 
75.14 	The commissioner must implement a process concerning trunk highway projects that are 
75.15 	not included in the state transportation improvement program. The commissioner must use 
75.16 	the process for projects that expand trunk highway system capacity and for major highway 
75.17 	projects, as defined in section 174.56, subdivision 1.
75.18 	(b) At a minimum, the process must:
75.19 	(1) establish standard, objective procedures for planning, project identification, 
75.20 	development, prioritization, and programming;
75.21 	(2) address fiscal considerations, including total expenditures to develop projects that 
75.22 	are not programmed;
75.23 	(3) communicate to stakeholders and the general public an outline of the process and a 
75.24 	list of specific capacity projects, using plain language descriptions and information; and
75.25 	(4) integrate with the department's programs that involve alternative project selection 
75.26 	methods, including but not limited to the corridors of commerce program under section 
75.27 	161.088 and the transportation economic development program under section 174.12.

75.28 	Sec. 62. Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:
75.29 		Subd. 5.Certification and disbursal for project of political subdivision. Before 
75.30 	disbursement of an appropriation made from the fund to the commissioner of transportation 
75.31 	for grants to subdivisions of the state, the commissioner shall must certify that:
76.1 	(1) that the project for which the grant is made has been reviewed as provided in 
76.2 	subdivision 4;
76.3 	(2) that the project conforms to the program authorized by the appropriation law and 
76.4 	rules adopted by the Department of Transportation consistent therewith; and
76.5 	(3) that (2) the financing of any estimated cost of the project in excess of the amount of 
76.6 	the grant is assured by the appropriation of the proceeds of bonds or other funds of the 
76.7 	subdivision, or by a grant from an agency of the federal government, within the amount of 
76.8 	funds then appropriated to that agency and allocated by it to projects within the state, and 
76.9 	by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to 
76.10 	use all funds so made available exclusively for the project, and to pay any additional amount 
76.11 	by which the cost exceeds the estimate through appropriation to the construction fund of 
76.12 	additional funds or the proceeds of additional bonds to be issued by the subdivision.

76.13 	Sec. 63. Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:
76.14 		Subd. 6b.Bridge costs in smaller cities. (a) The commissioner may make grants from 
76.15 	the state transportation fund to a home rule or statutory city with a population of 5,000 or 
76.16 	less for design, engineering, and construction of bridges on city streets.
76.17 	(b) Grants under this subdivision are subject to the procedures and criteria established 
76.18 	under subdivisions 5, 6, and 7.
76.19 	(c) (b) Grants may be used for:
76.20 	(1) 100 percent of the design and engineering costs that are in excess of $10,000;
76.21 	(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
76.22 	(3) 100 percent of the bridge construction work costs.

76.23 	Sec. 64. Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:
76.24 		Subd. 6c.Fracture-critical bridges. (a) The commissioner may make a grant to any 
76.25 	political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be 
76.26 	eligible for a grant under this subdivision, the project must produce a bridge structure:
76.27 	(1) that is no longer classified as fracture critical, by having alternate load paths; and
76.28 	(2) whose failure of a main component will not result in the collapse of the bridge.
76.29 	(b) A grant under this subdivision is subject to the procedures and criteria established 
76.30 	under subdivisions 5 and 6.

77.1 	Sec. 65. Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:
77.2 		Subd. 7.Bridge grant program; rulemaking. (a) The commissioner of transportation 
77.3 	shall develop rules, procedures for application for grants, conditions of grant administration, 
77.4 	standards, and criteria as provided under subdivision 6, including bridge specifications, in 
77.5 	cooperation with road authorities of political subdivisions, for use in the administration of 
77.6 	funds appropriated to the commissioner and for the administration of grants to subdivisions. 
77.7 	Grants under this section are subject to the procedures and criteria established in this 
77.8 	subdivision and in subdivisions 5 and 6.
77.9 	(b) The maximum use of standardized bridges is encouraged. Regardless of the size of 
77.10 	the existing bridge, a bridge or replacement bridge is eligible for assistance from the state 
77.11 	transportation fund if a hydrological survey indicates that the bridge or replacement bridge 
77.12 	must be ten feet or more in length.
77.13 	(c) As part of the standards or rules, the commissioner shall, in consultation with local 
77.14 	road authorities, establish a minimum distance between any two bridges that cross over the 
77.15 	same river, stream, or waterway, so that only one of the bridges is eligible for a grant under 
77.16 	this section. As appropriate, the commissioner may establish exceptions from the minimum 
77.17 	distance requirement or procedures for obtaining a variance.
77.18 	(d) Political subdivisions may use grants made under this section to construct or 
77.19 	reconstruct bridges, including but not limited to:
77.20 	(1) matching federal aid grants to construct or reconstruct key bridges;
77.21 	(2) paying the costs to abandon an existing bridge that is deficient and in need of 
77.22 	replacement but where no replacement will be made; and
77.23 	(3) paying the costs to construct a road or street to facilitate the abandonment of an 
77.24 	existing bridge if the commissioner determines that the bridge is deficient, and that 
77.25 	construction of the road or street is more economical than replacement of the existing bridge.
77.26 	(e) Funds appropriated to the commissioner from the Minnesota state transportation 
77.27 	fund shall be segregated from the highway tax user distribution fund and other funds created 
77.28 	by article XIV of the Minnesota Constitution.
77.29 	(f) The maximum grant amount for a local bridge replacement or rehabilitation project 
77.30 	under this section is $7,000,000. If in any year money appropriated for local bridge 
77.31 	replacement or rehabilitation projects remains available after all projects on the 
77.32 	commissioner's priority list for which the state share is $7,000,000 or less have been funded, 
77.33 	the commissioner may make grants for more than $7,000,000.

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

78.2 	Sec. 66. [174.54] TRANSPORTATION PRIORITIES FUND.
78.3 		Subdivision 1.Fund established. A transportation priorities fund is established in the 
78.4 	state treasury, under the budgetary jurisdiction of the legislative committees having 
78.5 	jurisdiction over transportation finance. The fund consists of money provided by law, and 
78.6 	any other funds donated, allotted, transferred, or otherwise provided. Money in the fund 
78.7 	must be allocated solely for transportation purposes as specified in this section and as 
78.8 	provided by law.
78.9 		Subd. 2.Financial reports. Any report or financial statement required by law to be 
78.10 	submitted to the legislature that provides financial information on the transportation priorities 
78.11 	fund must include accounting information on each account established within the fund, 
78.12 	including revenues and sources, transfers, uses, and account balance.
78.13 		Subd. 3.Fund allocation; net funds. (a) In fiscal year 2020 and thereafter, the 
78.14 	commissioner of transportation must allocate funds in the transportation priorities fund as 
78.15 	follows:
78.16 	(1) 70.5 percent transferred to the commissioner of transportation for deposit in the 
78.17 	highway user tax distribution fund, provided that this amount is reduced by the amount 
78.18 	transferred as specified in subdivision 4;
78.19 	(2) four percent to the small cities assistance account;
78.20 	(3) three percent for the local bridge replacement and rehabilitation program under 
78.21 	section 174.50;
78.22 	(4) 1.5 percent for the hazardous materials rail safety program under section 219.016;
78.23 	(5) 0.75 percent for purposes of replacement of highway-rail grade crossing warning 
78.24 	devices;
78.25 	(6) 0.25 percent for the public highway-rail grade crossing quiet zone program under 
78.26 	section 219.166;
78.27 	(7) ten percent for distribution as provided in subdivision 5; and
78.28 	(8) ten percent transferred to the commissioner of transportation for deposit in the greater 
78.29 	Minnesota transit account in the transit assistance fund.
78.30 	(b) Funds allocated under paragraph (a) exclude any amounts that are in an account in 
78.31 	the transportation priorities fund, and any amounts otherwise appropriated or transferred 
79.1 	from the fund by law. Funds allocated under paragraph (a) include any amounts canceled 
79.2 	to the fund under section 16A.28 or as otherwise provided by law.
79.3 		Subd. 4.Fund allocation; debt service. An amount equal to the necessary debt service 
79.4 	on trunk highway bond proceeds appropriated in article 2, section 2, subdivision 2, of this 
79.5 	act is annually transferred from the transportation priorities fund to the commissioner of 
79.6 	transportation for deposit in the trunk highway fund.
79.7 		Subd. 5.Fund allocation; certain metropolitan area county roads. (a) The 
79.8 	commissioner of transportation must distribute the funds under subdivision 3, paragraph 
79.9 	(a), clause (7), and any other funds appropriated specifically for purposes of this subdivision 
79.10 	to the counties in the metropolitan area, as defined in section 473.121, subdivision 4, 
79.11 	excluding the counties of Hennepin and Ramsey, so that each county receives from that 
79.12 	amount the percentage that its population, as defined in section 477A.011, subdivision 3, 
79.13 	estimated or established by July 15 of the year prior to the current calendar year, bears to 
79.14 	the total population of the counties receiving funds under this paragraph.
79.15 	(b) Funds distributed under this subdivision are for construction, reconstruction, and 
79.16 	maintenance of county highways, including county state-aid highways.

79.17 	Sec. 67. Minnesota Statutes 2016, section 174.56, subdivision 1, is amended to read:
79.18 		Subdivision 1.Report required. (a) The commissioner of transportation shall must
79.19 	submit a report by December 15 of each year on that includes:
79.20 	(1) the status of major highway projects:
79.21 	(i) completed during the previous two years; or
79.22 	(ii) under construction or planned during the year of the report and for the ensuing 15 
79.23 	years, (2) trunk highway fund expenditures, and;
79.24 	(2) a list of any major highway projects identified in capital investment plans or identified 
79.25 	as reasonably likely for inclusion in the state transportation improvement program within 
79.26 	the next ten years;
79.27 	(3) beginning with the report due in 2016, a list of any major highway projects removed 
79.28 	from, delayed within, or delayed from inclusion in the state transportation improvement 
79.29 	program or capital investment plans, including a discussion of the rationale for the delay 
79.30 	or removal;
79.31 	(4) an explanation of the highway project selection process, including key milestones 
79.32 	and decision-making steps;
80.1 	(5) the annual budget for products and services for each Department of Transportation 
80.2 	district and office, with a comparison to actual spending and including measures of 
80.3 	productivity for the previous fiscal year; and
80.4 	(6) information detailing efficiencies achieved during the previous two fiscal years, 
80.5 	which must describe each of the specific changes made and the methodology used to calculate 
80.6 	efficiencies.
80.7 	(b) For purposes of this section, a "major highway project" is a highway project that has 
80.8 	a total cost for all segments that the commissioner estimates at the time of the report to be 
80.9 	at least (1) $15,000,000 in the metropolitan highway construction district, or (2) $5,000,000 
80.10 	in any nonmetropolitan highway construction district. A major highway project does not 
80.11 	include district set-asides.

80.12 	Sec. 68. Minnesota Statutes 2016, section 174.56, subdivision 2, is amended to read:
80.13 		Subd. 2.Report contents; major highway projects. (a) For each major highway project
80.14 	under subdivision 1, paragraph (a), clause (1), the report must include:
80.15 	(1) a description of the project sufficient to specify its scope and location;
80.16 	(2) a history of the project, including, but not limited to, and as applicable: previous 
80.17 	official actions by the department or the appropriate area transportation partnership, or both, 
80.18 	the date on which the project was first included in the state transportation improvement plan
80.19 	program, the cost of the project at that time, the planning estimate for the project, the 
80.20 	engineer's estimate, the award price, the final cost as of six months after substantial 
80.21 	completion, including a total amount for any supplemental agreements and cost overruns 
80.22 	or cost savings, the dates of environmental approval, the dates of municipal approval, the 
80.23 	date of final geometric layout, and the date of establishment of any construction limits;
80.24 	(3) the project's priority listing or rank within its construction district, if any, as well as 
80.25 	the reasons for that listing or rank, the criteria used in prioritization or rank, any changes 
80.26 	in that prioritization or rank since the project was first included in a department work plan, 
80.27 	and the reasons for those changes; and
80.28 	(4) past and potential future reasons for delay in letting or completing the project, details 
80.29 	of all project cost changes that exceed $500,000, and specific modifications to the overall 
80.30 	program that are made as a result of delays and project cost changes;.
80.31 	(5) two representative trunk highway construction projects, one each from the 
80.32 	department's metropolitan district and from greater Minnesota, and for each project report 
80.33 	the cost of environmental mitigation and compliance; and
81.1 	(6) the annual budget for products and services for each Department of Transportation 
81.2 	district and office, with comparison to actual spending and including measures of productivity 
81.3 	for the previous fiscal year.
81.4 	(b) For each major highway project under subdivision 1, paragraph (a), clauses (2) and 
81.5 	(3), the report must include, as available, a project description and a summary of project 
81.6 	status, scoping activity, and cost estimates.

81.7 	Sec. 69. Minnesota Statutes 2016, section 174.56, is amended by adding a subdivision to 
81.8 	read:
81.9 		Subd. 4.Availability of information. The commissioner must maintain on an Internet 
81.10 	Web site information for each major highway project, which must at a minimum include 
81.11 	the report contents identified in subdivision 2.

81.12 	Sec. 70. [174.57] SNOW AND ICE CONTROL; APPROPRIATION.
81.13 	(a) In a fiscal year in which the commissioner expends more than 110 percent of the 
81.14 	established biennial expenditure level for snow and ice management, the commissioner may 
81.15 	use an additional amount for this purpose that does not exceed 50 percent of the 
81.16 	unappropriated balance in the trunk highway fund. The amount identified by the 
81.17 	commissioner under this paragraph is appropriated from the trunk highway fund to the 
81.18 	commissioner for snow and ice management purposes.
81.19 	(b) Upon using the appropriation authority in this section, the commissioner must notify 
81.20 	the commissioner of management and budget and the chairs, ranking minority members, 
81.21 	and staff of the house of representatives and senate committees having jurisdiction over 
81.22 	transportation finance. The notification must at a minimum identify the established biennial 
81.23 	expenditure level for snow and ice management and the amount appropriated under this 
81.24 	section.
81.25 	(c) In each budget submission to the legislature under section 16A.11, the commissioner 
81.26 	must include:
81.27 	(1) the proposed biennial expenditure level for snow and ice management for the next 
81.28 	budget biennium; and
81.29 	(2) the total amount expended or estimated to be expended under the appropriation in 
81.30 	this section for the budget biennium that is ending.

82.1 	Sec. 71. Minnesota Statutes 2016, section 174.93, is amended to read:
82.2 	174.93 GUIDEWAY METROPOLITAN AREA TRANSIT INVESTMENT.
82.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
82.4 	the meanings given:
82.5 	(1) "busway" means a form of transportation service, consisting of arterial or highway 
82.6 	bus rapid transit, limited stop bus service, and express bus service, provided to the public 
82.7 	on a regular and ongoing basis that does not primarily or substantially operate within 
82.8 	separated rights-of-way;
82.9 	(2) "commissioner" means the commissioner of transportation;
82.10 	(2) (3) "guideway" means a form of transportation service provided to the public on a 
82.11 	regular and ongoing basis, that primarily or substantially operates on exclusive or controlled
82.12 	within separated rights-of-way or operates on rails in whole or in part, and includes:
82.13 	(i) each line for intercity passenger rail, commuter rail, light rail transit, and streetcars, 
82.14 	and;
82.15 	(ii) as applicable, each line for dedicated bus service, which may include arterial or 
82.16 	highway bus rapid transit, limited stop bus service, and express bus service; and
82.17 	(iii) any intermodal facility serving two or more lines identified in items (i) and (ii); and
82.18 	(3) (4) "local unit of government" means a county, statutory or home rule charter city, 
82.19 	town, or other political subdivision including, but not limited to, a regional railroad authority 
82.20 	or joint powers board.
82.21 	(b) For purposes of this section, "sources of funds" includes, but is not limited to, money 
82.22 	from federal aid, state appropriations, the Metropolitan Council, special taxing districts, 
82.23 	local units of government, fare box recovery, and nonpublic sources.
82.24 	(c) For purposes of this section, "budget activity" includes, but is not limited to, 
82.25 	environmental analysis, land acquisition, easements, design, preliminary and final 
82.26 	engineering, acquisition of vehicles and rolling stock, track improvement and rehabilitation, 
82.27 	and construction.
82.28 	(d) Guideway does not include a busway.
82.29 	(e) "Separated rights-of-way" includes exclusive, dedicated, or primary use of a 
82.30 	right-of-way by the public transportation service. Separated rights-of-way does not include 
82.31 	a shoulder, dynamic shoulder lane, or priced lane under section 160.93.
83.1 		Subd. 1a.Guideway capital project requests to legislature. A state agency or local 
83.2 	unit of government that submits a request to the legislature to obtain state funds for a 
83.3 	guideway project shall, as part of the request, provide a summary financial plan for the 
83.4 	project that presents the following information as reflected by the data and level of detail 
83.5 	available in the latest phase of project development:
83.6 	(1) capital expenditures and funding sources for the project, including expenditures to 
83.7 	date and total projected or estimated expenditures, with a breakdown by committed and 
83.8 	proposed sources of funds; and
83.9 	(2) estimated annual operations and maintenance expenditures for the project, with a 
83.10 	breakdown by committed and proposed sources of funds.
83.11 		Subd. 2.Legislative report. (a) Annually by January 15, 2012, and by November 15 in 
83.12 	every odd-numbered year thereafter, the commissioner shall council must prepare, in 
83.13 	collaboration with the Metropolitan Council commissioner, and a report on comprehensive 
83.14 	transit finance in the metropolitan area. The council must submit a the report electronically 
83.15 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
83.16 	over transportation policy and finance concerning.
83.17 	(b) The report must be structured to provide financial information in six-month increments 
83.18 	corresponding to state and local fiscal years, and must use consistent assumptions and 
83.19 	methodologies. The report must comprehensively identify all funding sources and 
83.20 	expenditures related to transit in the metropolitan area, including but not limited to:
83.21 	(1) sources and uses of funds from regional railroad authorities, joint powers agreements, 
83.22 	counties, and cities;
83.23 	(2) expenditures for transit planning, feasibility studies, alternatives analysis, and other 
83.24 	transit project development; and
83.25 	(3) expenditures for guideways, busways, regular route bus service, demand-response 
83.26 	service, and special transportation service under section 473.386.
83.27 	(c) The report must include a section that identifies the status of guideways in revenue 
83.28 	operation and guideway projects (1) currently in study, planning, development, or 
83.29 	construction; (2) identified in the transportation policy plan under section 473.146; or (3) 
83.30 	identified in the comprehensive statewide freight and passenger rail plan under section 
83.31 	174.03, subdivision 1b.
83.32 	(b) (d) At a minimum, the guideways status section of the report must include, provide
83.33 	for each guideway project wholly or partially in the metropolitan area:
84.1 	(1) a brief description of the project, including projected ridership;
84.2 	(2) a summary of the overall status and current phase of the project;
84.3 	(3) a timeline that includes (i) project phases or milestones, including any federal 
84.4 	approvals; (ii) expected and known dates of commencement of each phase or milestone; 
84.5 	and (iii) expected and known dates of completion of each phase or milestone;
84.6 	(4) a brief progress update on specific project phases or milestones completed since the 
84.7 	last previous submission of a report under this subdivision; and
84.8 	(5) a summary financial plan that identifies, as reflected by the data and level of detail 
84.9 	available in the latest phase of project development and to the extent available:
84.10 	(i) capital expenditures, including expenditures to date and total projected expenditures, 
84.11 	with a breakdown by committed and proposed sources of funds for the project;
84.12 	(ii) estimated annual operations and maintenance expenditures reflecting the level of 
84.13 	detail available in the current phase of the project development, with a breakdown by 
84.14 	committed and proposed sources of funds for the project; and
84.15 	(iii) if feasible, project expenditures by budget activity.
84.16 	(e) The report must include a section that summarizes the status of busways in revenue 
84.17 	operation and busway projects currently in study, planning, development, or construction.
84.18 	(f) The report must include a section that identifies the total ridership, farebox recovery 
84.19 	ratio, and per-passenger operating subsidy for (1) each route and line in revenue operation 
84.20 	by a transit provider, including guideways, busways, and regular route bus service; and (2) 
84.21 	demand-response service and special transportation service. The section must provide data 
84.22 	on a per-passenger mile basis and must provide information for at least the previous three 
84.23 	years. The section must identify performance standards for farebox recovery and identify 
84.24 	each route and line that does not meet the standards.
84.25 	(c) (g) The report must also include a systemwide capacity analysis for transit operations 
84.26 	and investment in guideway expansion and maintenance that:
84.27 	(1) provides a funding projection, annually over the ensuing ten years, and with a 
84.28 	breakdown by committed and proposed sources of funds, of:
84.29 	(i) total capital expenditures for guideways and for busways;
84.30 	(ii) total operations and maintenance expenditures for guideways and for busways;
85.1 	(iii) total funding available for guideways and for busways, including from projected or 
85.2 	estimated farebox recovery; and
85.3 	(iv) total funding available for transit service in the metropolitan area; and
85.4 	(2) evaluates the availability of funds and distribution of sources of funds for guideway
85.5 	and for busway investments.
85.6 	(d) (h) The projection capacity analysis under paragraph (c), clause (1), (g) must be for
85.7 	include all guideway and busway lines for which state public funds are reasonably expected 
85.8 	to be expended in planning, development, construction, or revenue operation, or capital 
85.9 	maintenance during the ensuing ten years.
85.10 	(e) (i) Local units of government shall must provide assistance and information in a 
85.11 	timely manner as requested by the commissioner or council for completion of the report.

85.12 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
85.13 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
85.14 	Scott, and Washington.

85.15 	Sec. 72. [219.016] OIL AND OTHER HAZARDOUS MATERIALS RAIL SAFETY.
85.16 		Subdivision 1.Program established. A hazardous materials rail safety program is 
85.17 	established for the purpose of reducing the risks associated with the transportation of oil, 
85.18 	ethanol, and other hazardous material by rail.
85.19 		Subd. 2.Hazardous materials rail safety account. A hazardous materials rail safety 
85.20 	account is established in the transportation priorities fund. The account consists of funds as 
85.21 	provided by law, and any other funds donated, allotted, transferred, or otherwise provided.
85.22 		Subd. 3.Use of funds. Funds appropriated for the program under this section may only 
85.23 	be used for capital costs associated with planning, engineering, administration, and 
85.24 	construction of public highway-rail grade crossing improvements on rail corridors 
85.25 	transporting crude oil and other hazardous materials. Improvements may include upgrades 
85.26 	to existing protection systems, the closing of crossings and necessary roadwork, and 
85.27 	reconstruction of at-grade crossings to full grade separations.
85.28 		Subd. 4.Eligible applicants. Counties, statutory or home rule charter cities, or towns 
85.29 	that are responsible for establishing and maintaining public highway-rail grade crossings 
85.30 	on rail corridors transporting crude oil and other hazardous materials may apply to the 
85.31 	commissioner for financial assistance under this section.
86.1 		Subd. 5.Grants; authorization. The commissioner may approve grants for financial 
86.2 	assistance to eligible applicants for capital costs associated with hazardous materials rail 
86.3 	safety projects on public highway-rail grade crossings. Qualifying capital costs include, but 
86.4 	are not limited to, upgrades to existing protection systems, the closing of crossings and 
86.5 	necessary roadwork, and reconstruction of at-grade crossings to full grade separations.
86.6 		Subd. 6.Grants; criteria for grant award. The commissioner must consider the 
86.7 	following criteria to evaluate applications for a grant award for a hazardous materials rail 
86.8 	safety project:
86.9 	(1) whether the crossing was identified as a potential candidate for grade separation in 
86.10 	the Department of Transportation's crude by rail grade crossing study (Improvements to 
86.11 	Highway Grade Crossings and Rail Safety, December 2014);
86.12 	(2) roadway traffic volumes and speeds;
86.13 	(3) train volumes and speeds;
86.14 	(4) adjacent land use;
86.15 	(5) crash history;
86.16 	(6) use of the crossing by emergency vehicles;
86.17 	(7) use of the crossing by vehicles carrying hazardous materials; and
86.18 	(8) local financial contributions to the project.

86.19 	Sec. 73. Minnesota Statutes 2016, section 219.166, is amended to read:
86.20 	219.166 ESTABLISHMENT OF QUIET ZONES.
86.21 		Subdivision 1.Eligible quiet zone applicants. A county, statutory or home rule charter 
86.22 	city, or town may apply to the Federal Railroad Administration for the establishment of a 
86.23 	"quiet zone" at a public highway-rail grade crossing in which the sounding of horns, whistles, 
86.24 	or other audible warnings by locomotives is regulated or prohibited. All quiet zones, 
86.25 	regulations, and ordinances adopted under this section must conform to federal law and the 
86.26 	regulations of the Federal Railroad Administration under United States Code of Federal 
86.27 	Regulations, title 49, section 20153 parts 222 and 229.
86.28 		Subd. 2.Program established. A public highway-rail grade crossing quiet zone program 
86.29 	is established for the purpose of improving and rehabilitating railroad rights-of-way and 
86.30 	other public and private rail facilities, including necessary safety-related capital improvements 
86.31 	at public highway-rail grade crossings where quiet zones are established.
87.1 		Subd. 3.Highway-rail grade crossing quiet zone account. A highway-rail grade 
87.2 	crossing quiet zone account is established in the transportation priorities fund. The account 
87.3 	consists of funds as provided by law, and any other funds donated, allotted, transferred, or 
87.4 	otherwise provided.
87.5 		Subd. 4.Use of funds. Funds appropriated for the program under this section may only 
87.6 	be used for capital costs associated with the establishment of a quiet zone at a public 
87.7 	highway-rail grade crossing.
87.8 		Subd. 5.Eligible applicants. Counties, statutory or home rule charter cities, or towns 
87.9 	that are responsible for traffic control or law enforcement at a public highway-rail grade 
87.10 	crossing and that qualify as eligible applicants to the Federal Railroad Administration (FRA) 
87.11 	for the establishment of a quiet zone may apply to the commissioner for financial assistance 
87.12 	under this section.
87.13 		Subd. 6.Grants; authorization. The commissioner may approve grants for financial 
87.14 	assistance to eligible applicants for capital costs associated with the establishment of a quiet 
87.15 	zone at a public highway-rail grade crossing. Qualifying capital costs include, but are not 
87.16 	limited to, the installation of grade crossing active warning devices and other traffic control 
87.17 	devices and associated roadwork necessary to meet the FRA criteria for approval of the 
87.18 	quiet zone.
87.19 		Subd. 7.Grants; criteria for grant award. The commissioner must consider the 
87.20 	following criteria to evaluate applications for a grant award for a quiet zone project:
87.21 	(1) the number of residents that will benefit from the establishment of the quiet zone 
87.22 	through a reduction in train horn noise;
87.23 	(2) the number of existing grade crossings that will be closed, thereby improving public 
87.24 	safety;
87.25 	(3) evidence that the project meets FRA qualifications and requirements for a quiet zone, 
87.26 	without the need for additional annual review by FRA per federal quiet zone regulations;
87.27 	(4) nonstate financial participation as a percentage of total project cost; and
87.28 	(5) the amount of state financial participation per resident benefiting from the project.

87.29 	Sec. 74. Minnesota Statutes 2016, section 219.20, subdivision 1, is amended to read:
87.30 		Subdivision 1.When installation required; procedure. At each grade crossing not 
87.31 	equipped with flashing lights or flashing lights and gates where, because of the dangers 
87.32 	attendant upon its use, the reasonable protection of life and property makes it necessary for 
88.1 	persons approaching the crossing to stop or yield before crossing the railroad tracks, stop 
88.2 	signs or yield signsthe railway company must be installed install yield signs in addition to 
88.3 	crossbuck signs. When the government entity responsible for a road that crosses a railroad 
88.4 	track deems it necessary to install stop signs orrather than yield signs at that crossing, it 
88.5 	shall petition the commissioner to order the installation of the stop signs or yield signs. The 
88.6 	commissioner shall respond to the petition by investigating the conditions at the crossing 
88.7 	to determine whether stop signs or yield signs should be installed at the crossing instead of 
88.8 	yield signs. On determining, after an investigation following a petition from a governmental 
88.9 	agency or subdivision or on the commissioner's own motion, that stop signs or yield signs
88.10 	should be installed at a crossing, the commissioner shall designate the crossing as a stop 
88.11 	crossing or yield crossing and shall notify the railway company operating the railroad at 
88.12 	the crossing of this designation. Within 30 days after notification, the railway company 
88.13 	shall erect the uniform stop crossing signs or yield crossing signs in accordance with the 
88.14 	commissioner's order.

88.15 	EFFECTIVE DATE. This section is effective the day following final enactment. 
88.16 	Railway companies must install yield signs required under this section before December 
88.17 	31, 2019.

88.18 	Sec. 75. Minnesota Statutes 2016, section 221.031, is amended by adding a subdivision 
88.19 	to read:
88.20 		Subd. 2e.Exemptions for pipeline welding trucks. A pipeline welding truck, as defined 
88.21 	in Code of Federal Regulations, title 49, section 390.38, paragraph (b), including an individual 
88.22 	operating a pipeline welding truck and the employer of the individual, is exempt from any 
88.23 	requirement relating to:
88.24 	(1) registration as a motor carrier, including the requirement to obtain and display a 
88.25 	United States Department of Transportation number under subdivision 6 and section 168.185;
88.26 	(2) driver qualifications under section 221.0314, subdivision 2;
88.27 	(3) driving of commercial motor vehicles under section 221.0314, subdivision 6;
88.28 	(4) parts, accessories, and inspection, repair, and maintenance of commercial motor 
88.29 	vehicles under section 221.0314, subdivisions 7 and 10; and
88.30 	(5) hours of service of drivers, including maximum driving and on-duty time under 
88.31 	section 221.0314, subdivision 9.

89.1 	Sec. 76. Minnesota Statutes 2016, section 222.49, is amended to read:
89.2 	222.49 RAIL SERVICE IMPROVEMENT ACCOUNT; APPROPRIATION.
89.3 	The rail service improvement account is created in the special revenue fund in the state 
89.4 	treasury transportation priorities fund. The commissioner shall deposit in this account all
89.5 	consists of funds as provided by law, and any other money appropriated to or received by 
89.6 	the department for the purpose of rail service improvement donated, allotted, transferred, 
89.7 	or otherwise provided to the account, excluding bond proceeds as authorized by article XI, 
89.8 	section 5, clause (i), of the Minnesota Constitution. All money so deposited is appropriated 
89.9 	to the department for expenditure for rail service improvement in accordance with applicable 
89.10 	state and federal law. This appropriation shall not lapse but shall be available until the 
89.11 	purpose for which it was appropriated has been accomplished. No money appropriated to 
89.12 	the department for the purposes of administering the rail service improvement program 
89.13 	shall be deposited in the rail service improvement account nor shall such administrative 
89.14 	costs be paid from the account.

89.15 	Sec. 77. Minnesota Statutes 2016, section 222.50, subdivision 6, is amended to read:
89.16 		Subd. 6.Grants. The commissioner may approve grants from the rail service 
89.17 	improvement account for payment of up to 50 percent of the nonfederal share of the cost 
89.18 	of any rail line project under the federal rail service continuation program freight rail service 
89.19 	improvements that support economic development.

89.20 	Sec. 78. Minnesota Statutes 2016, section 222.50, is amended by adding a subdivision to 
89.21 	read:
89.22 		Subd. 6a.Grants; freight railroad preservation and improvement. (a) The 
89.23 	commissioner may make grants for freight railroad preservation and improvement as provided 
89.24 	in this subdivision and for the purposes specified in subdivision 7.
89.25 	(b) The following entities are eligible to receive grant funds under this subdivision: 
89.26 	railroad companies that are classified by federal law or regulation as class II railroads, class 
89.27 	II rail carriers, class III railroads, or class III carriers; rail users; and local units of 
89.28 	government. An eligible recipient may receive funds regardless of rail facility ownership.
89.29 	(c) When awarding grants, the commissioner must prioritize projects:
89.30 	(1) identified under subdivision 7, paragraph (a), clauses (2) and (3);
89.31 	(2) on segments experiencing low rail service use; and
90.1 	(3) for applicants who commit more than 20 percent of total project costs from nonstate 
90.2 	and nonfederal sources.
90.3 	(d) A grant under this subdivision must not exceed 80 percent of the total project cost.

90.4 	Sec. 79. Minnesota Statutes 2016, section 299D.03, subdivision 6, is amended to read:
90.5 		Subd. 6.Training program. The commissioner of public safety may provide training 
90.6 	programs for the purpose of obtaining qualified personnel for the State Patrol. Persons 
90.7 	accepted by the commissioner of public safety for training under this training program shall 
90.8 	be designated State Patrol trainees and shall receive a salary not to exceed no less than 70 
90.9 	percent of the basic salary for patrol officers as prescribed in subdivision 2, during the period 
90.10 	of the training. Nothing contained in this subdivision shall be construed to prevent the 
90.11 	commissioner of public safety from providing in-service training programs for State Patrol 
90.12 	officers. The commissioner of transportation shall furnish the commissioner of public safety 
90.13 	with lands and buildings necessary in providing in-service training programs and the 
90.14 	Department of Public Safety shall reimburse the Department of Transportation for all 
90.15 	reasonable costs incurred due to the provision of these training facilities.

90.16 	Sec. 80. [398A.095] LEGISLATIVE APPROVAL OF LIGHT RAIL PROJECTS.
90.17 	Notwithstanding any law to the contrary, a regional railroad authority is prohibited from 
90.18 	spending any money to study, plan, design, or construct a light rail transit line, or expand 
90.19 	an existing light rail line, unless the legislature has explicitly authorized the particular 
90.20 	project.

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

90.22 	Sec. 81. [471.987] LEGISLATIVE APPROVAL OF LIGHT RAIL PROJECTS.
90.23 	Notwithstanding any law to the contrary, a metropolitan county as defined in section 
90.24 	473.121, subdivision 4, or a home rule charter or statutory city located within the metropolitan 
90.25 	area as defined in section 473.121, subdivision 2, is prohibited from spending any money 
90.26 	to study, plan, design, or construct a light rail transit line, or expand an existing light rail 
90.27 	transit line, unless the legislature has explicitly authorized the particular project.

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

91.1 	Sec. 82. Minnesota Statutes 2016, section 473.13, subdivision 1, is amended to read:
91.2 		Subdivision 1.Budget. (a) On or before December 20 of each year, the council shall 
91.3 	adopt a final budget covering its anticipated receipts and disbursements for the ensuing year 
91.4 	and shall decide upon the total amount necessary to be raised from ad valorem tax levies 
91.5 	to meet its budget. The budget shall state in detail the expenditures for each program to be 
91.6 	undertaken, including the expenses for salaries, consultant services, overhead, travel, printing, 
91.7 	and other items. The budget shall state in detail the capital expenditures of the council for 
91.8 	the budget year, based on a five-year capital program adopted by the council and transmitted 
91.9 	to the legislature. After adoption of the budget and no later than five working days after 
91.10 	December 20, the council shall certify to the auditor of each metropolitan county the share 
91.11 	of the tax to be levied within that county, which must be an amount bearing the same 
91.12 	proportion to the total levy agreed on by the council as the net tax capacity of the county 
91.13 	bears to the net tax capacity of the metropolitan area. The maximum amount of any levy 
91.14 	made for the purpose of this chapter may not exceed the limits set by the statute authorizing 
91.15 	the levy.
91.16 	(b) Each even-numbered year the council shall prepare for its must include transit 
91.17 	programs a financial plan financial planning information in the budget for the succeeding 
91.18 	three calendar years, in half-year segments that coincide with the council and state fiscal 
91.19 	years. The financial plan information must contain schedules of user charges and any changes 
91.20 	in user charges planned or anticipated by the council during the period of the plan. The 
91.21 	financial plan information must contain a proposed request for state financial assistance, if 
91.22 	any, for the succeeding state biennium.
91.23 	(c) In addition, the budget must show for each year:
91.24 	(1) the estimated operating revenues from all sources including funds on hand at the 
91.25 	beginning of the year, and estimated expenditures for costs of operation, administration, 
91.26 	maintenance, and debt service;
91.27 	(2) capital improvement funds estimated to be on hand at the beginning of the year and 
91.28 	estimated to be received during the year from all sources and estimated cost of capital 
91.29 	improvements to be paid out or expended during the year, all in such detail and form as the 
91.30 	council may prescribe; and
91.31 	(3) the estimated source and use of pass-through funds.
91.32 	(d) In a year that is the second fiscal year of the state biennium, the budget must identify 
91.33 	state assistance from the general fund for transit operations at the same amount as the state 
91.34 	general fund base, if any.

92.1 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
92.2 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
92.3 	Scott, and Washington.

92.4 	Sec. 83. Minnesota Statutes 2016, section 473.146, subdivision 3, is amended to read:
92.5 		Subd. 3.Development guide: transportation. (a) The transportation chapter must 
92.6 	include policies relating to all transportation forms and be designed to promote the legislative 
92.7 	determinations, policies, and goals set forth in section 473.371.
92.8 	(b) In addition to the policy plan content requirements under subdivision 1, the policy 
92.9 	plan must also establish as a primary objective an increase of the average farebox recovery 
92.10 	ratio, calculated for all regular routes and lines operated by the council, to at least 40 percent 
92.11 	by 2022. The plan must identify strategies to achieve the farebox recovery objective under 
92.12 	this paragraph.
92.13 	(c) In addition to the requirements of subdivision 1 regarding the contents of the policy 
92.14 	plan, the nontransit element of the transportation chapter must include the following:
92.15 	(1) a statement of the needs and problems of the metropolitan area with respect to the 
92.16 	functions covered, including the present and prospective demand for and constraints on 
92.17 	access to regional business concentrations and other major activity centers and the constraints 
92.18 	on and acceptable levels of development and vehicular trip generation at such centers;
92.19 	(2) the objectives of and the policies to be forwarded by the policy plan;
92.20 	(3) a general description of the physical facilities and services to be developed;
92.21 	(4) a statement as to the general location of physical facilities and service areas;
92.22 	(5) a general statement of timing and priorities in the development of those physical 
92.23 	facilities and service areas;
92.24 	(6) a detailed statement, updated every two years, of timing and priorities for 
92.25 	improvements and expenditures needed on the metropolitan highway system;
92.26 	(7) a general statement on the level of public expenditure appropriate to the facilities; 
92.27 	and
92.28 	(8) a long-range assessment of air transportation trends and factors that may affect airport 
92.29 	development in the metropolitan area and policies and strategies that will ensure a 
92.30 	comprehensive, coordinated, and timely investigation and evaluation of alternatives for 
92.31 	airport development.
93.1 	(d) The council shall develop the nontransit element in consultation with the transportation 
93.2 	advisory board and the Metropolitan Airports Commission and cities having an airport 
93.3 	located within or adjacent to its corporate boundaries. The council shall also take into 
93.4 	consideration the airport development and operations plans and activities of the commission. 
93.5 	The council shall transmit the results to the state Department of Transportation.

93.6 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
93.7 	final enactment and applies to all future updates to the plan. This section applies in the 
93.8 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

93.9 	Sec. 84. Minnesota Statutes 2016, section 473.388, subdivision 4, is amended to read:
93.10 		Subd. 4.Financial assistance. (a) The council must grant the requested financial 
93.11 	assistance if it determines that the proposed service is intended to replace the service to the 
93.12 	applying city or town or combination thereof by the council and that the proposed service 
93.13 	will meet the needs of the applicant at least as efficiently and effectively as the existing 
93.14 	service.
93.15 	(b) The minimum amount of assistance which the council must provide to a system 
93.16 	under this section may not be less than the sum of the amounts determined calculated for 
93.17 	each municipality comprising the system as follows: of the replacement service 
93.18 	municipalities.
93.19 	(c) The minimum amount of financial assistance for each replacement service 
93.20 	municipality is calculated as:
93.21 	(1) an amount equal to 4.3 percent of the total state revenues generated from the taxes 
93.22 	imposed under chapter 297B for the current fiscal year; times
93.23 	(2) the ratio of (i) the transit operating assistance grants received under this subdivision 
93.24 	by the municipality in calendar year 2001 or the tax revenues for transit services levied by 
93.25 	the municipality for taxes payable in 2001, including that portion of the levy derived from 
93.26 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the 
93.27 	municipality's aid under Minnesota Statutes 2002, section 273.1398, subdivision 2, 
93.28 	attributable to the transit levy; times (2) the ratio of (i) an amount equal to 3.74 percent of 
93.29 	the state revenues generated from the taxes imposed under chapter 297B for the current 
93.30 	fiscal year to (ii) the total transit operating assistance grants received under this subdivision 
93.31 	in calendar year 2001 or the tax revenues for transit services levied by all replacement 
93.32 	service municipalities under this section for taxes payable in 2001, including that portion 
93.33 	of the levy derived from the areawide pool under section 473F.08, subdivision 3, clause 
94.1 	(a), plus the portion of homestead and agricultural credit aid under Minnesota Statutes 2002, 
94.2 	section 273.1398, subdivision 2, attributable to nondebt transit levies; times
94.3 	(3) the ratio of (i) the municipality's total taxable market value for taxes payable in 2006 
94.4 	divided by the municipality's total taxable market value for taxes payable in 2001, to (ii) 
94.5 	the total taxable market value of all property located in replacement service municipalities 
94.6 	for taxes payable in 2006 divided by the total taxable market value of all property located 
94.7 	in replacement service municipalities for taxes payable in 2001.
94.8 	(c) The council shall pay the amount to be provided to the recipient from the funds the 
94.9 	council receives in the metropolitan area transit account under section 16A.88.

94.10 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
94.11 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
94.12 	Scott, and Washington.

94.13 	Sec. 85. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to 
94.14 	read:
94.15 		Subd. 6.Limitation on certain debt obligations. The council is prohibited from issuing 
94.16 	certificates of participation, certificates of indebtedness, bonds, or other obligations secured 
94.17 	in whole or in part by a pledge of motor vehicle sales tax revenue received under sections 
94.18 	16A.88 and 297B.09, or by a pledge of any earnings from the council's investment of motor 
94.19 	vehicle sales tax revenues.

94.20 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
94.21 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
94.22 	Scott, and Washington.

94.23 	Sec. 86. [473.3985] LEGISLATIVE APPROVAL OF LIGHT RAIL PROJECTS.
94.24 	Notwithstanding any law to the contrary, a responsible authority, as defined in section 
94.25 	473.3993, subdivision 4, is prohibited from spending any money to study, plan, design, or 
94.26 	construct a light rail line, or expand an existing light rail transit line, unless the legislature 
94.27 	has explicitly authorized the particular project.

94.28 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
94.29 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
94.30 	Scott, and Washington.

95.1 	Sec. 87. Minnesota Statutes 2016, section 473.3994, is amended by adding a subdivision 
95.2 	to read:
95.3 		Subd. 15.Project development requirements; colocation. The council must establish 
95.4 	standards and criteria for colocation of freight rail and light rail transit on shared track or 
95.5 	on adjacent track in a shared rail corridor that apply to light rail transit project development. 
95.6 	The standards and criteria must:
95.7 	(1) identify colocation safety criteria based on the results of an independent audit and 
95.8 	review, which must be analyzed in an environmental impact statement for each applicable 
95.9 	light rail transit project;
95.10 	(2) incorporate substantially similar safety standards for a light rail transit project as 
95.11 	established by the Federal Railroad Administration for freight rail, including but not limited 
95.12 	to those pertaining to engineering, track-work planning, track safety, inspections, training 
95.13 	and operations, routing, emergency preparedness, and signage and warning systems;
95.14 	(3) prohibit operation of a train carrying oil or other hazardous substances through a 
95.15 	light rail transit project construction work zone;
95.16 	(4) specify project design elements to address safety considerations resulting from 
95.17 	colocation;
95.18 	(5) account for project costs resulting from colocation safety considerations; and
95.19 	(6) for adjacent track in a shared corridor, provide for sufficient track spacing separation 
95.20 	to ensure the likelihood of impacts on operations on a track due to derailment of a train on 
95.21 	the adjacent track is minimized.

95.22 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
95.23 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
95.24 	Scott, and Washington.

95.25 	Sec. 88. Minnesota Statutes 2016, section 473.3994, is amended by adding a subdivision 
95.26 	to read:
95.27 		Subd. 16.Project development requirements; alternatives and benefits analysis. (a) 
95.28 	As part of light rail transit project development and prior to initiating an environmental 
95.29 	analysis or preliminary engineering, the responsible authority must perform an alternatives 
95.30 	and benefits analysis.
95.31 	(b) In addition to any other information or requirements, the alternatives and benefits 
95.32 	analysis must:
96.1 	(1) include (i) a no-build option; and (ii) options for each major transit mode, including 
96.2 	but not limited to regular route bus service, arterial bus rapid transit, highway bus rapid 
96.3 	transit, express bus service, and dedicated busway;
96.4 	(2) evaluate capacity adequacy and congestion impacts under each option;
96.5 	(3) include a comprehensive benefit-cost analysis; and
96.6 	(4) review conformity with the transportation policy plan under section 473.146.

96.7 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
96.8 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
96.9 	Scott, and Washington.

96.10 	Sec. 89. Minnesota Statutes 2016, section 473.4051, subdivision 3, is amended to read:
96.11 		Subd. 3.Capital costs. State money may not be used to pay more than ten percent of 
96.12 	the total capital cost of a light rail transit project. The council and a local governmental unit 
96.13 	must not specify or estimate state sources of funds in financial planning for the capital cost 
96.14 	of a light rail transit project, unless funds have been specifically made available by law for 
96.15 	the project.

96.16 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
96.17 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
96.18 	Scott, and Washington.

96.19 	Sec. 90. [473.4052] RIGHTS-OF-WAY USE; CONTRACTS.
96.20 	(a) The council or a metropolitan county, or public entity contracting with the council 
96.21 	or county, may contract with a railroad that is a class I, class II, or class III railroad under 
96.22 	federal law for the joint or shared use of right-of-way for light rail transit and freight rail 
96.23 	purposes or for the construction, operation, or maintenance of rail track, facilities, or services 
96.24 	for light rail transit and freight rail purposes.
96.25 	(b) Notwithstanding any law to the contrary, a contract under paragraph (a) may also 
96.26 	provide for the allocation of financial responsibility, indemnification, and the procurement 
96.27 	of insurance for the parties for all types of claims or damages.
96.28 	(c) Notwithstanding any law to the contrary, a class I, class II, or class III railroad 
96.29 	operating pursuant to a contract under this section has the same limits to liability for all 
96.30 	types of claims or damages as provided to a municipality under sections 466.04 and 466.06, 
96.31 	in an action arising from or related to an incident:
97.1 	(1) occurring within the joint or shared use of right-of-way; and
97.2 	(2) involving both freight rail and light rail transit.
97.3 	(d) A contract entered into under this section does not affect rights of employees under 
97.4 	the federal Employers' Liability Act (1908) (Railroads), Statutes at Large, volume 35, chapter 
97.5 	149, or the federal Railway Labor Act, Statutes at Large, volume 44, chapter 347.

97.6 	EFFECTIVE DATE. This section is effective on the date that the council enters into 
97.7 	a full funding grant agreement with the Federal Transit Administration for construction of 
97.8 	a light rail transit line or line extension, excluding an agreement entered into prior to the 
97.9 	date of enactment of this act. This section applies in the counties of Anoka, Carver, Dakota, 
97.10 	Hennepin, Ramsey, Scott, and Washington.

97.11 	Sec. 91. TRANSPORTATION PROJECT SELECTION PROCESS.
 97.12 		Subdivision 1.Adoption of best practices. (a) The commissioner of transportation, 
97.13 	after consultation with the Federal Highway Administration, metropolitan planning 
97.14 	organizations, regional development commissions, area transportation partnerships, local 
97.15 	governments, the Metropolitan Council, and transportation stakeholders, must develop, 
97.16 	adopt, and implement best practices for project evaluation and selection to apply to the 
97.17 	standard project process and to special programs, such as corridors of commerce. The 
97.18 	commissioner must adopt and begin implementing the best practices no later than January 
97.19 	1, 2018, and may update the best practices as appropriate. The commissioner must publish 
97.20 	the best practices and updates on the department's Web site and through other effective 
97.21 	means selected by the commissioner.
97.22 	(b) The best practices adopted under this section must:
97.23 	(1) describe each selection process and identification of ranking criteria and weight of 
97.24 	each criterion with respect to any selection process;
97.25 	(2) identify and apply all relevant criteria contained in enacted Minnesota or federal law, 
97.26 	or added by the commissioner;
97.27 	(3) identify for stakeholders and the general public the candidate project selected under 
97.28 	each selection process and every project considered that was not selected;
97.29 	(4) involve area transportation partnerships and other local authorities, as appropriate, 
97.30 	in the process of scoring and ranking candidate projects under consideration; and
97.31 	(5) publicize scoring, ranking, and decision outcomes concerning each candidate project, 
97.32 	including the projects that were considered but not selected.
98.1 		Subd. 2.Report to legislature. By March 1, 2018, the commissioner must submit a 
98.2 	report to the members and staff of the legislative committees with jurisdiction over 
98.3 	transportation policy and finance concerning the adopted best practices and how the best 
98.4 	practices are anticipated to improve the consistency, objectivity, and transparency of the 
98.5 	selection process. The report must include information on input from members of the public 
98.6 	and the organizations identified in subdivision 1.

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

98.8 	Sec. 92. CORRIDORS OF COMMERCE PROJECT SELECTION.
 98.9 	Notwithstanding the requirements of Minnesota Statutes, section 161.088, subdivisions 
98.10 	3 to 5, the commissioner of transportation must include that segment of marked U.S. Highway 
98.11 	212 from Chaska to Montevideo as an eligible highway in the next project solicitation and 
98.12 	selection process undertaken for the corridors of commerce program under that section.

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

98.14 	Sec. 93. TRANSPORTATION POLICY PLAN UPDATE.
 98.15 	By December 31, 2017, the Metropolitan Council must revise the transportation policy 
98.16 	plan under Minnesota Statutes, section 473.146, subdivision 3.

98.17 	EFFECTIVE DATE. This section is effective the day following final enactment and 
98.18 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

98.19 	Sec. 94. REQUIREMENTS FOR CERTAIN LIGHT RAIL TRANSIT PROJECTS.
 98.20 	Subject to approval as provided under Minnesota Statutes, section 473.3985, the 
98.21 	requirements established under Minnesota Statutes, section 473.3994, subdivisions 15 and 
98.22 	16, apply to any light rail transit construction or expansion project that is in project 
98.23 	development, including but not limited to design or engineering, as of the effective date of 
98.24 	this section.

98.25 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
98.26 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
98.27 	Scott, and Washington.

98.28 	Sec. 95. ELECTRONIC STORAGE STANDARDS.
 98.29 	On or before August 1, 2017, the commissioner of public safety must establish standards 
98.30 	for the conversion by deputy registrars and driver's license agents to secure electronic storage 
99.1 	of certain records under Minnesota Statutes, sections 168.33, subdivision 2, and 171.061, 
99.2 	subdivision 3. The standards must specify minimum system security requirements, as well 
99.3 	as any procedural requirements for the destruction of existing and new paper-based records, 
99.4 	consistent with the requirements of Minnesota Statutes, section 138.17. The authority to 
99.5 	establish or amend standards under this section expires August 1, 2018.

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

99.7 	Sec. 96. CONVEYANCE OF LAND; TOWN OF WILMA.
 99.8 	(a) Upon receipt of $100, the commissioner of transportation shall convey by quitclaim 
99.9 	deed the following described property and improvements thereon, owned by the state, to 
99.10 	the town of Wilma in Pine County, to be used by the Duxbury Volunteer Fire Department:
99.11 	That part of the Southwest Quarter of the Southeast Quarter of Section 8, Township 42 
99.12 	North, Range 17 West, Pine County, Minnesota, described as follows: Beginning at a point 
99.13 	on the south line of said Section 8, distant 1,318.35 feet West to the southeast corner thereof; 
99.14 	thence North along the east line of said Southwest Quarter of the Southeast Quarter for 300 
99.15 	feet; thence West for 200 feet; thence South for 300 feet to the south line of said Section 8; 
99.16 	thence East along said south line to the point of beginning.
99.17 	(b) The conveyance under this section must be in a form approved by the attorney general. 
99.18 	The attorney general may make changes to the land description to correct errors and ensure 
99.19 	accuracy.

99.20 	Sec. 97. CONVEYANCE FOR HISTORICAL PURPOSES; MCKINSTRY SURPLUS 
99.21 	LANDS.
 99.22 	(a) Notwithstanding any other law to the contrary, the commissioner may convey as 
99.23 	provided in Minnesota Statutes, section 161.44, land described in paragraph (b), including 
99.24 	any improvements on the lands, owned in fee by the state for trunk highway purposes, but 
99.25 	no longer needed, to the Minnesota Historical Society for historical purposes. The conveyance 
99.26 	must be without financial consideration. The lands conveyed must become a part of the 
99.27 	state's historic sites program under Minnesota Statutes, chapter 138.
99.28 	(b) The lands that may be conveyed are specifically related to the properties of the 
99.29 	McKinstry Mounds and portions of the McKinstry Village site owned by the Department 
99.30 	of Transportation, located along Trunk Highway 11 in Koochiching County.

100.1 	Sec. 98. DEPARTMENT OF TRANSPORTATION CONTRACT CANCELLATION 
100.2 	AND LOAN FORGIVENESS.
 100.3 	The commissioner of transportation must provide loan forgiveness for the $4,300,000 
100.4 	remaining balance on Contract No. 82799, originally executed with the Minnesota Valley 
100.5 	Regional Rail Authority on January 28, 2002, and must cancel all future payments under 
100.6 	the contract. The commissioner is prohibited from requiring or accepting additional payments 
100.7 	under Contract No. 82799 as of the effective date of this section.

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

100.9 	Sec. 99. DEPARTMENT OF TRANSPORTATION EFFICIENCIES.
 100.10 	(a) In fiscal years 2018 and 2019, the commissioner of transportation must implement 
100.11 	efficiencies, including as identified by the Transportation Strategic Management and 
100.12 	Operations Advisory Task Force report under Laws 2008, chapter 152, article 6, section 9, 
100.13 	equal to at least 15 percent of the appropriations made in this act to the commissioner from 
100.14 	the trunk highway fund in fiscal years 2018 and 2019 that are above base appropriations 
100.15 	for those years.
100.16 	(b) The efficiency savings resulting from the requirements in paragraph (a) are for the 
100.17 	construction, maintenance, or rehabilitation of trunk highways, including roads and bridges.

100.18 	Sec. 100. MARKED TRUNK HIGHWAY 316 SAFETY IN HASTINGS; 
100.19 	MORATORIUM AND REPORT.
 100.20 		Subdivision 1.Speed limit moratorium. The commissioner of transportation is 
100.21 	prohibited from adjusting or requiring adjustment to the speed limit on marked Trunk 
100.22 	Highway 316, known as Red Wing Boulevard, from the intersection with marked U.S. 
100.23 	Highway 61 to Tuttle Drive, in the city of Hastings. The prohibition in this subdivision does 
100.24 	not apply to (1) a local road authority that is authorized to adjust a speed limit without a 
100.25 	traffic and engineering study as provided in Minnesota Statutes, section 169.14; or (2) 
100.26 	establishment of a work zone speed limit under Minnesota Statutes, section 169.14, 
100.27 	subdivision 5d.
100.28 		Subd. 2.Legislative report. (a) By March 1, 2018, the commissioner of transportation 
100.29 	must submit a report on roadway safety on the segment of marked Trunk Highway 316 
100.30 	specified in subdivision 1 to the members and staff of the legislative committees with 
100.31 	jurisdiction over transportation policy and finance. As part of developing the report, the 
100.32 	commissioner must hold at least two hearings at locations within the city of Hastings.
101.1 	(b) At a minimum, the report must review road design and other safety issues on the 
101.2 	segment, identify options for safety improvements, provide details on the decision making 
101.3 	process for proposed speed limit adjustments, summarize and respond to comments from 
101.4 	the hearings required under paragraph (a), and include copies of recent traffic and engineering 
101.5 	studies on adjusting speed limits in Hastings.

101.6 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2017.

101.7 	Sec. 101. MARKED INTERSTATE HIGHWAY 35 WEIGH STATION; 
101.8 	MORATORIUM AND REPORT.
 101.9 		Subdivision 1.Weigh station moratorium. On or before February 1, 2018, the 
101.10 	commissioner of transportation is prohibited from designing, engineering, or constructing 
101.11 	a motor vehicle weigh station for the southbound direction of travel on marked Interstate 
101.12 	Highway 35, between the marked Interstate Highways 35W/35E split and two miles northerly 
101.13 	of the split.
101.14 		Subd. 2.Legislative report. By February 1, 2018, the commissioner of transportation 
101.15 	must submit a report on weigh station access and traffic safety on the segment of marked 
101.16 	Interstate Highway 35 identified in subdivision 1 to the members and staff of the legislative 
101.17 	committees with jurisdiction over transportation policy and finance. At a minimum, the 
101.18 	report must include analysis of traffic safety impacts resulting from motor vehicle departures 
101.19 	from the proposed weigh station that proceed southerly on marked Interstate Highways 35E 
101.20 	or 35W.

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

101.22 	Sec. 102. DEFICIENT BRIDGE WEIGHT LIMITS; STUDY AND ANALYSIS.
 101.23 	(a) By November 15, 2017, the commissioner of transportation must complete a study 
101.24 	and analysis of posted weight limits on state and local bridges to identify deficient bridges 
101.25 	in those geographic regions of the state where fluid milk is transported from points of 
101.26 	production to points of first processing. The study and analysis must:
101.27 	(1) identify bridges with posted weight limits;
101.28 	(2) review the vehicle weight limits under Minnesota Statutes, chapter 169, including 
101.29 	Minnesota Statutes, section 169.8295, relative to bridge posting standards;
101.30 	(3) analyze vehicle routing considerations for transportation of fluid milk; and
102.1 	(4) include geographic mapping information that is made available to milk haulers, milk 
102.2 	processing facilities, local road authorities, and other interested stakeholders.
102.3 	(b) Upon request by the commissioner, local road authorities must provide information 
102.4 	on bridges under their respective jurisdictions in a timely manner.

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

102.6 	Sec. 103. TRUNK HIGHWAY 65 IMPROVEMENT STUDY.
 102.7 	(a) The commissioner of transportation must perform a study of congestion and safety 
102.8 	improvements on marked Trunk Highway 65 from northerly of Anoka County Highway 
102.9 	10 to Anoka County State-Aid Highway 116, known as Bunker Lake Boulevard, in Blaine 
102.10 	and Ham Lake. At a minimum, the study must:
102.11 	(1) analyze current and projected traffic congestion;
102.12 	(2) analyze impacts to freight transportation;
102.13 	(3) evaluate options and identify cost estimates to reduce congestion in the corridor; and
102.14 	(4) evaluate options and identify cost estimates for congestion reduction and safety 
102.15 	improvements at Anoka County State-Aid Highway 12, known as 109th Avenue.
102.16 	(b) The commissioner must submit a copy of the study to the members and staff of the 
102.17 	legislative committees with jurisdiction over transportation policy and finance.

102.18 	Sec. 104. INTERSTATE 94/494/694 INTERCHANGE IMPROVEMENT STUDY.
 102.19 	The commissioner of transportation must conduct a safety improvement and congestion 
102.20 	relief study for the interchange of marked Interstate Highways 94, 494, and 694 in the cities 
102.21 	of Oakdale and Woodbury. At a minimum, the study must: (1) provide specific 
102.22 	recommendations to improve the safety of the interchange and reduce congestion at the 
102.23 	interchange and on associated arterial roads; and (2) include cost estimates for each 
102.24 	recommended improvement. The commissioner must report the findings and 
102.25 	recommendations of the study to the legislative committees having jurisdiction over 
102.26 	transportation policy and finance within 180 days after the effective date of this section.

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

102.28 	Sec. 105. HIGHWAY CONSTRUCTION COSTS AND COST INFLATION STUDY.
 102.29 	(a) The commissioner of transportation must enter into an agreement with an organization 
102.30 	or entity having relevant expertise to conduct a study on highway construction costs, inflation, 
103.1 	and cost estimating. The study must be designed to identify and analyze the nature of 
103.2 	discrepancies in highway construction costs and cost inflation estimates between Minnesota 
103.3 	and other federal and national measures.
103.4 	(b) At a minimum, the study must:
103.5 	(1) include an overview of highway construction cost and cost estimation issues;
103.6 	(2) establish benchmarks to compare costs in Minnesota to at least four other states that 
103.7 	are comparable based on climate and construction characteristics, including historical 
103.8 	state-by-state review of at least the following cost factors: (i) direct input costs associated 
103.9 	with highway construction, (ii) cost impacts from construction standards and requirements 
103.10 	established in law, and (iii) cost impacts from use of alternative methods of contracting and 
103.11 	project management;
103.12 	(3) identify factors specific to Minnesota, if any, that contribute to cost differences, 
103.13 	based on the benchmarks established in clause (2);
103.14 	(4) evaluate the methodology used for highway construction cost calculation and indexing 
103.15 	in Minnesota, including (i) review of associated best practices, (ii) comparison of federal 
103.16 	and Minnesota state highway construction cost index methodologies utilizing historical cost 
103.17 	data for Minnesota, (iii) identification of the reasons for any past discrepancies or differences 
103.18 	between state and federal highway construction cost indexing, and (iv) analysis of the 
103.19 	historical accuracy of the Minnesota highway construction cost index compared to actual 
103.20 	costs; and
103.21 	(5) provide specific recommendations for road authorities and legislative changes to 
103.22 	reduce highway construction costs.
103.23 	(c) By February 15, 2018, the commissioner must submit a report on the study to the 
103.24 	members and staff of the legislative committees with jurisdiction over transportation policy 
103.25 	and finance.

103.26 	Sec. 106. VIBRATION SUSCEPTIBILITY STUDY ON CALHOUN ISLES 
103.27 	PROPERTY.
 103.28 	(a) Within 21 days from the effective date of this act, the Metropolitan Council must 
103.29 	enter into a contract with an engineering group for the engineering group to conduct a 
103.30 	vibration susceptibility study on Calhoun Isles property, including the high-rise building, 
103.31 	townhomes, and parking ramp. The study must:
104.1 	(1) evaluate the susceptibility of the Calhoun Isles property to vibration during 
104.2 	construction and during operations of a light rail train;
104.3 	(2) categorize the Calhoun Isles property based on the susceptibility evaluation; and
104.4 	(3) address mitigation measures and operational changes required to protect the Calhoun 
104.5 	Isles property from vibratory damage.
104.6 	(b) The Calhoun Isles Condominium Association must select the engineering group and 
104.7 	notify the Metropolitan Council of the selection within seven days from the effective date 
104.8 	of this act. The Metropolitan Council must bear the entire cost of the study.

104.9 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
104.10 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
104.11 	Scott, and Washington.

104.12 	Sec. 107. REPORT ON DEDICATED FUND EXPENDITURES.
 104.13 	By February 15, 2018, the commissioners of transportation and public safety, in 
104.14 	consultation with the commissioner of management and budget, must jointly submit a report 
104.15 	to the members and staff of the legislative committees with jurisdiction over transportation 
104.16 	finance. The report must update the information required in the report under Laws 2015, 
104.17 	chapter 75, article 2, section 56, including a detailed list of expenditures and transfers from 
104.18 	the trunk highway fund and highway user tax distribution fund for fiscal years 2014 through 
104.19 	2018, and information on the purpose of each expenditure.

104.20 	Sec. 108. LEGISLATIVE ROUTE NO. 123 REMOVED.
 104.21 	(a) Minnesota Statutes, section 161.115, subdivision 54, is repealed effective the day 
104.22 	after the commissioner of transportation receives a copy of the agreement between the 
104.23 	commissioner and the governing body of Le Sueur County to transfer jurisdiction of 
104.24 	Legislative Route No. 123 and after the commissioner notifies the revisor of statutes under 
104.25 	paragraph (b).
104.26 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
104.27 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
104.28 	or in writing that the conditions required to transfer the route have been satisfied.

104.29 	Sec. 109. LEGISLATIVE ROUTE NO. 225 REMOVED.
 104.30 	(a) Minnesota Statutes, section 161.115, subdivision 156, is repealed effective the day 
104.31 	after the commissioner of transportation receives a copy of the agreement between the 
105.1 	commissioner and the governing body of Becker County to transfer jurisdiction of Legislative 
105.2 	Route No. 225 and after the commissioner notifies the revisor of statutes under paragraph 
105.3 	(b).
105.4 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
105.5 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
105.6 	or in writing that the conditions required to transfer the route have been satisfied.

105.7 	Sec. 110. REVISOR'S INSTRUCTION.
 105.8 	The revisor of statutes shall recodify (1) Minnesota Statutes, section 115A.908, as 
105.9 	Minnesota Statutes, section 168A.295; and (2) Minnesota Statutes, section 174.93, as 
105.10 	Minnesota Statutes, section 473.4485. The revisor shall correct any cross-references made 
105.11 	necessary by the recodifications.

105.12 	Sec. 111. LEGISLATIVE ROUTE NO. 101 REMOVED; REPEALER.
 105.13 	Minnesota Statutes 2016, section 161.115, subdivision 32, is repealed.

105.14 	Sec. 112. REPEALER.
 105.15 	(a) Minnesota Statutes 2016, section 473.4051, subdivision 2, is repealed.
105.16 	(b) Minnesota Rules, parts 8810.0800, subpart 3; and 8810.1300, subpart 4, are repealed.

APPENDIX 

Repealed Minnesota Statutes: H0861-2 

161.115 ADDITIONAL TRUNK HIGHWAYS.Subd. 32.Route No. 101. 
Beginning at a point on Route No. 1 at or near Faribault, thence extending in a northerly direction to a point on Route No. 50. 

297A.992 METROPOLITAN TRANSPORTATION AREA SALES TAX.Subd. 12.Grant awards to Metropolitan Council. 
Any grant award under this section made to the Metropolitan Council must supplement, and must not supplant, operating and capital assistance provided by the state. 

473.4051 LIGHT RAIL TRANSIT CONSTRUCTION AND OPERATION.Subd. 2.Operating costs. 
After operating revenue and federal money have been used to pay for light rail transit operations, 50 percent of the remaining operating costs must be paid by the state. 

8810.0800SCENIC AREAS.   Subp. 3.On-premise signs.  
Within a scenic area on-premise signs as follows are allowed: 

A.
 one name plate sign per real estate parcel not to exceed eight square feet in size including trim and border but excluding base and apron supports and other structural members; 

B.
 two signs, one facing each direction of traffic per real estate parcel not exceeding eight square feet in size per each face, including trim and border but excluding base and apron supports and other structural members, for the purpose of advertising the sale, hire, or lease of the property or contiguous property of the parcel owner, lessee, or occupant; and 

C.
 any sign not exceeding 150 square feet in size (per face) including border, trim, or other embellishments, excluding base and apron supports and other structural members advertising the business conducted, services rendered, goods produced or sold that is within 100 feet in either direction of travel (as measured along the edge of the roadbed) from the site on the property where said activity or activities are conducted or access thereto is provided. Outside this 100 feet of the site on the property where said activity or activities are conducted or access thereto is provided there shall not be more than two on-premise advertising devices, one facing each direction of traffic. 

8810.1300PERMITS, FEES, AND RENEWALS.   Subp. 4.Expiration and renewal.  
Requests for permit renewals will not be accepted more than 60 calendar days prior to the expiration date of the permit. All permits within scenic areas will expire on December 31 of each year. All permits for signs in nonscenic areas will expire on June 30 of every year.