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; establishing a fund; making appropriations; authorizing the sale and issuance 
1.5 	of state bonds;amending Minnesota Statutes 2016, sections 16A.88, subdivision 
1.6 	2; 53C.01, subdivision 2; 115A.908, subdivision 2; 117.189; 160.18, by adding a 
1.7 	subdivision; 161.081, subdivision 3; 161.088, subdivisions 4, 5, 7; 161.115, 
1.8 	subdivision 190; 161.14, by adding subdivisions; 161.321, subdivision 6; 161.38, 
1.9 	by adding a subdivision; 161.44, subdivisions 5, 6a, by adding a subdivision; 
1.10 	162.145, subdivision 2; 168.021, subdivisions 1, 2, 2a; 168.27, by adding a 
1.11 	subdivision; 168.33, subdivision 2; 168A.09, subdivision 1; 169.011, subdivision 
1.12 	34; 169.18, subdivision 5; 169.345, subdivisions 1, 3; 169.444, subdivision 2; 
1.13 	169.449, subdivision 1; 169.865, subdivision 3; 171.02, subdivision 2b; 171.06, 
1.14 	subdivision 2a; 171.061, subdivision 3; 171.12, subdivision 6; 173.02, subdivisions 
1.15 	18, 23, by adding subdivisions; 173.06, subdivision 1; 173.07, subdivision 1; 
1.16 	173.08, by adding subdivisions; 173.13, subdivision 11; 173.16, by adding 
1.17 	subdivisions; 174.03, subdivisions 1a, 1c, by adding a subdivision; 174.50, 
1.18 	subdivisions 5, 6b, 6c, 7; 174.56, subdivisions 1, 2, by adding a subdivision; 174.93; 
1.19 	219.166; 219.20, subdivision 1; 221.031, by adding a subdivision; 222.49; 222.50, 
1.20 	subdivision 6, by adding a subdivision; 299D.03, subdivision 6; 473.13, subdivision 
1.21 	1; 473.146, subdivision 3; 473.388, subdivision 4; 473.39, by adding a subdivision; 
1.22 	473.3994, by adding subdivisions; 473.4051, subdivision 3; Laws 2015, chapter 
1.23 	75, article 1, section 3, subdivision 3; proposing coding for new law in Minnesota 
1.24 	Statutes, chapters 168; 169; 173; 174; 219; 398A; 471; 473; repealing Minnesota 
1.25 	Statutes 2016, sections 161.115, subdivision 32; 473.4051, subdivision 2; Minnesota 
1.26 	Rules, parts 8810.0800, subpart 3; 8810.1300, subpart 4.
1.27 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.28 	ARTICLE 1
1.29 	TRANSPORTATION APPROPRIATIONS

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

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

2.4			2018
		2019
		Total
	
2.5	General
	$
	82,396,000
	$
	55,270,000
	$
	137,666,000
	
2.6	Airports
		42,631,000
		22,609,000
		65,240,000
	
2.7	C.S.A.H.
		744,172,000
		759,502,000
		1,503,673,000
	
2.8	M.S.A.S.
		195,682,000
		200,365,000
		396,047,000
	
2.9	Special Revenue
		66,445,000
		65,087,000
		131,532,000
	
2.10	H.U.T.D.
		10,474,000
		10,486,000
		20,960,000
	
2.11	Transportation Priorities
		105,104,000
		128,147,000
		233,251,000
	
2.12	Trunk Highway
		1,882,987,000
		1,758,547,000
		3,648,534,000
	
2.13	Total
	$
	3,024,786,000
	$
	2,871,866,000
	$
	5,896,652,000

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

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

2.30
2.31	Sec. 4. DEPARTMENT OF 
TRANSPORTATION

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

2.33	Appropriations by Fund
	
2.34		2018
	2019
	
2.35	General
	24,879,000
	18,358,000
	
3.1	Airports
	42,631,000
	22,609,000
	
3.2	C.S.A.H.
	744,172,000
	759,502,000
	
3.3	M.S.A.S.
	195,682,000
	200,365,000
	
3.4	Special Revenue
	1,000,000
	-0-
	
3.5
3.6	Transportation 
Priorities
	105,104,000
	128,147,000
	
3.7	Trunk Highway
	1,777,639,000
	1,649,194,000
	
3.8 	The appropriations in this section are to the 
3.9 	commissioner of transportation. The amounts 
3.10 	that may be spent for each purpose are 
3.11 	specified in the following subdivisions.

3.12	Subd. 2.Multimodal Systems
 					
3.13 	(a) Aeronautics

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

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

4.16	Appropriations by Fund
	
4.17		2018
	2019
	
4.18	Airports
	5,231,000
	5,231,000
	
4.19	Trunk Highway
	1,479,000
	1,623,000

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

4.33
4.34	(4) International Falls-Koochiching County 
Airport Commission
		3,000,000
		-0-
	
5.1 	(i) This appropriation is from the state airports 
5.2 	fund for a grant to the International 
5.3 	Falls-Koochiching County Airport 
5.4 	Commission for the following improvements 
5.5 	to the Falls International Airport:
5.6 	(A) demolition of the existing terminal 
5.7 	building;
5.8 	(B) rehabilitation;
5.9 	(C) site preparation, including utilities and 
5.10 	civil work;
5.11 	(D) design, construction, furnishing, and 
5.12 	equipping Phase II of the new terminal 
5.13 	building, including a Transportation Safety 
5.14 	Administration office, weather office, 
5.15 	conference room, circulation corridor, airport 
5.16 	administration offices, United States Customs 
5.17 	and Border Protection storage rooms, offices, 
5.18 	restrooms, passenger-processing area, 
5.19 	wet-hold room, interview room, search room, 
5.20 	pre- and post-customs passenger waiting areas, 
5.21 	and vestibule; and
5.22 	(E) associated appurtenances of a capital 
5.23 	nature.
5.24 	(ii) After completion of the improvements 
5.25 	under item (i), any unspent money from this 
5.26 	appropriation may be used by the International 
5.27 	Falls-Koochiching County Airport 
5.28 	Commission for a commercial airline apron 
5.29 	expansion project at the Falls International 
5.30 	Airport.
5.31 	(iii) This appropriation does not require a 
5.32 	nonstate contribution or match.

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

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

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

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

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

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

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

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

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

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

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

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

10.34	(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 3, section 102.
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 3, section 
12.28 	103.
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 3, section 104.
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 	3, section 90.
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 POLICY AND FINANCE

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

34.25 	Sec. 2. Minnesota Statutes 2016, section 53C.01, subdivision 2, is amended to read:
34.26 		Subd. 2.Cash sale price. "Cash sale price" means the price at which the seller would 
34.27 	in good faith sell to the buyer, and the buyer would in good faith buy from the seller, the 
34.28 	motor vehicle which is the subject matter of the retail installment contract, if such sale were 
34.29 	a sale for cash, instead of a retail installment sale. The cash sale price may include any taxes, 
34.30 	charges for delivery, servicing, repairing, or improving the motor vehicle, including 
34.31 	accessories and their installation, and any other charges agreed upon between the parties. 
35.1 	The cash price may not include a documentary fee or document administration fee in excess 
35.2 	of $75 for services actually rendered to, for, or on behalf of, the retail buyer in preparing, 
35.3 	handling, and processing documents relating to the motor vehicle and the closing of the 
35.4 	retail sale authorized under section 168.27, subdivision 31. "Documentary fee" and "document 
35.5 	administration fee" do not include an optional electronic transfer fee as defined under 
35.6 	subdivision 14.

35.7 	Sec. 3. Minnesota Statutes 2016, section 115A.908, subdivision 2, is amended to read:
35.8 		Subd. 2.Deposit of revenue. Revenue collected under this section shall be credited to 
35.9 	the environmental transportation priorities fund.

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

35.12 	Sec. 4. Minnesota Statutes 2016, section 117.189, is amended to read:
35.13 	117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.
35.14 	(a) Sections 117.031; 117.036; 117.055, subdivision 2, paragraph (b); 117.186; 117.187; 
35.15 	117.188; and 117.52, subdivisions 1a and 4, do not apply to the use of eminent domain 
35.16 	authority by public service corporations for any purpose other than construction or expansion 
35.17 	of:
35.18 	(1) a high-voltage transmission line of 100 kilovolts or more, or ancillary substations; 
35.19 	or
35.20 	(2) a natural gas, petroleum, or petroleum products pipeline, or ancillary compressor 
35.21 	stations or pumping stations.; or
35.22 	(3) a light rail transit or bus rapid transit line.
35.23 	(b) For purposes of an award of appraisal fees under section 117.085, the fees awarded 
35.24 	may not exceed $1,500 for all types of property except for a public service corporation's 
35.25 	use of eminent domain for:
35.26 	(1) a high-voltage transmission line, where the award may not exceed $3,000; and
35.27 	(2) a light rail transit or bus rapid transit line, where the award shall be as provided in 
35.28 	section 117.085.
35.29 	(c) For purposes of this section, "pipeline" does not include a natural gas distribution 
35.30 	line transporting gas to an end user.

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

36.2 	Sec. 5. Minnesota Statutes 2016, section 160.18, is amended by adding a subdivision to 
36.3 	read:
36.4 		Subd. 4.Trunk highway appeal process. (a) Notwithstanding chapter 14 and section 
36.5 	14.386, the commissioner must establish a concise, expedited process that allows an owner 
36.6 	or occupant of a property abutting a trunk highway to appeal a denial or revocation of an 
36.7 	access permit. The owner or occupant must initiate an appeal no later than 30 days after the 
36.8 	date the commissioner issues written notice of the denial or revocation of an access permit. 
36.9 	The process must provide the owner or occupant and Department of Transportation staff 
36.10 	the opportunity to present information supporting each party's respective position. The 
36.11 	hearing must be conducted by an administrative law judge assigned by the chief 
36.12 	administrative law judge. The administrative law judge must maintain a transcript of the 
36.13 	hearing and keep a record of all documents and data submitted at the hearing. Within 30 
36.14 	days of the hearing's conclusion, the administrative law judge must transmit to the 
36.15 	commissioner the record of the proceedings, along with a report and recommendation based 
36.16 	on the record made in the informal hearing. The commissioner must make a written decision 
36.17 	regarding the access permit.
36.18 	(b) Section 15.99 does not apply to appeals under this subdivision.

36.19 	Sec. 6. Minnesota Statutes 2016, section 161.081, subdivision 3, is amended to read:
36.20 		Subd. 3.Flexible highway account; turnback accounts. (a) The flexible highway 
36.21 	account is created in the state treasury. Money in the account shall be used must be allocated 
36.22 	as follows:
36.23 	(1) in fiscal years 2009 and 2010, 100 percent of the excess sum, as calculated in 
36.24 	paragraph (i), and in fiscal years 2011 and thereafter, 50 16 percent of the excess sum, as 
36.25 	calculated in paragraph (i), amount available in the flexible highway account for counties 
36.26 	in the metropolitan area, as defined in section 473.121, subdivision 4, but for the purposes 
36.27 	of the calculation cities of the first class will be excluded in the metropolitan area distributed 
36.28 	proportionally based on the most recent estimate of county population excluding the 
36.29 	population of any city of the first class; and
36.30 	(2) of the amount available in the flexible highway account less the amount under clause 
36.31 	(1), as determined by the commissioner under this section for:
37.1 	(i) restoration of former trunk highways that have reverted to counties or to statutory or 
37.2 	home rule charter cities, or for trunk highways that will be restored and subsequently turned 
37.3 	back by agreement between the commissioner and the local road authority;
37.4 	(ii) safety improvements on county highways, municipal highways, streets, or town 
37.5 	roads; and
37.6 	(iii) routes of regional significance.
37.7 	(b) For purposes of this subdivision, "restoration" means the level of effort required to 
37.8 	improve the route that will be turned back to an acceptable condition as determined by 
37.9 	agreement made between the commissioner and the county or city before the route is turned 
37.10 	back.
37.11 	(c) The commissioner shall review the need for funds to restore highways that have been 
37.12 	or will be turned back. The commissioner shall determine, on a biennial basis, the percentage 
37.13 	of funds in the flexible highway account to be distributed to each district, and within each 
37.14 	district the percentage to be used for each of the purposes specified in paragraph (a). Money 
37.15 	in the account may be used for safety improvements and routes of regional significance 
37.16 	only after money is set aside to restore the identified turnbacks. The commissioner shall 
37.17 	make these determinations only after meeting and holding discussions with committees 
37.18 	selected by the statewide associations of both county commissioners and municipal officials. 
37.19 	The commissioner shall, to the extent feasible, annually allocate 50 percent of the funds in 
37.20 	the flexible highway account to the department's metropolitan district, and 50 percent to 
37.21 	districts in greater Minnesota.
37.22 	(d) Money that will be used for the restoration of trunk highways that have reverted or 
37.23 	that will revert to cities must be deposited in the municipal turnback account, which is 
37.24 	created in the state treasury.
37.25 	(e) Money that will be used for the restoration of trunk highways that have reverted or 
37.26 	that will revert to counties must be deposited in the county turnback account, which is 
37.27 	created in the state treasury.
37.28 	(f) Money that will be used for safety improvements must be deposited in the highway 
37.29 	safety improvement account, which is created in the state treasury to be used as grants to 
37.30 	statutory or home rule charter cities, towns, and counties to assist in paying the costs of 
37.31 	constructing or reconstructing city streets, county highways, or town roads to reduce crashes, 
37.32 	deaths, injuries, and property damage.
38.1 	(g) Money that will be used for routes of regional significance must be deposited in the 
38.2 	routes of regional significance account, which is created in the state treasury, and used as 
38.3 	grants to statutory or home rule charter cities, towns, and counties to assist in paying the 
38.4 	costs of constructing or reconstructing city streets, county highways, or town roads with 
38.5 	statewide or regional significance that have not been fully funded through other state, federal, 
38.6 	or local funding sources.
38.7 	(h) As part of each biennial budget submission to the legislature, the commissioner shall 
38.8 	describe how the money in the flexible highway account will be apportioned among the 
38.9 	county turnback account, the municipal turnback account, the trunk highway fund for routes 
38.10 	turned back to local governments by agreement, the highway safety improvement account, 
38.11 	and the routes of regional significance account.
38.12 	(i) The excess sum is calculated as the sum of revenue within the flexible highway 
38.13 	account:
38.14 	(1) attributed to that portion of the gasoline excise tax rate under section 296A.07, 
38.15 	subdivision 3, in excess of 20 cents per gallon, and to that portion of the excise tax rates in 
38.16 	excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon for E85 
38.17 	and M85 under section 296A.07, subdivision 3, and special fuel under section 296A.08, 
38.18 	subdivision 2;
38.19 	(2) attributed to a change in the passenger vehicle registration tax under section 168.013, 
38.20 	imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal year 2008, 
38.21 	multiplied by (ii) the annual average United States Consumer Price Index for the calendar 
38.22 	year previous to the current calendar year, divided by the annual average United States 
38.23 	Consumer Price Index for calendar year 2007; and
38.24 	(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the 
38.25 	percentage allocated to the flexible highway account in fiscal year 2007.
38.26 	(j) For purposes of this subdivision, the United States Consumer Price Index identified 
38.27 	in paragraph (i), clause (2), is for all urban consumers, United States city average, as 
38.28 	determined by the United States Department of Labor.

38.29 	Sec. 7. Minnesota Statutes 2016, section 161.088, subdivision 4, is amended to read:
38.30 		Subd. 4.Project eligibility. (a) The commissioner shall must establish eligibility 
38.31 	requirements for projects that can be funded under the program. Eligibility must include:
38.32 	(1) consistency with the statewide multimodal transportation plan under section 174.03;
39.1 	(2) location of the project on an interregional corridor, for a project located outside of 
39.2 	the Department of Transportation metropolitan district;
39.3 	(3) placement into at least one project classification under subdivision 3;
39.4 	(4) a maximum requirement that project construction work is able to commence within 
39.5 	three years, or a longer length of time, as determined by the commissioner, until 
39.6 	commencement of construction work on the project; and
39.7 	(5) for each type of project classification under subdivision 3, a maximum allowable 
39.8 	amount for the total project cost estimate, as determined by the commissioner with available 
39.9 	data.
39.10 	(b) A project whose construction is programmed in the state transportation improvement 
39.11 	program is not eligible for funding under the program. This paragraph does not apply to a 
39.12 	project that is programmed as result of selection under this section.
39.13 	(c) A project may be, but is not required to be, identified in the 20-year state highway 
39.14 	capital investment plan under section 174.03.

39.15 	Sec. 8. Minnesota Statutes 2016, section 161.088, subdivision 5, is amended to read:
39.16 		Subd. 5.Project selection process; criteria. (a) The commissioner shall must establish 
39.17 	a process for identification, evaluation, and selection of to identify, evaluate, and select
39.18 	projects under the program.
39.19 	(b) As part of the project selection process, the commissioner shall must annually accept 
39.20 	recommendations on candidate projects from area transportation partnerships and other 
39.21 	interested stakeholders in each Department of Transportation district. For each candidate 
39.22 	project identified under this paragraph, the commissioner shall must determine eligibility, 
39.23 	classify, and if appropriate eligible, evaluate the project for the program.
39.24 	(c) Project evaluation and prioritization must be performed on the basis of objective 
39.25 	criteria, which must include:
39.26 	(1) a return on investment measure that provides for comparison across eligible projects;
39.27 	(2) measurable impacts on commerce and economic competitiveness;
39.28 	(3) efficiency in the movement of freight, including but not limited to which may include:
39.29 	(i) measures of annual average daily traffic and commercial vehicle miles traveled, which 
39.30 	may include data near the project location on that trunk highway or on connecting trunk 
39.31 	and local highways; and
40.1 	(ii) measures of congestion or travel time reliability, which may be within or near the 
40.2 	project limits, or both;
40.3 	(4) improvements to traffic safety;
40.4 	(5) connections to regional trade centers, local highway systems, and other transportation 
40.5 	modes;
40.6 	(6) the extent to which the project addresses multiple transportation system policy 
40.7 	objectives and principles; and
40.8 	(7) support and consensus for the project among members of the surrounding community.
40.9 	(d) As part of the project selection process, the commissioner may divide funding to be 
40.10 	separately available among projects within each classification under subdivision 3, and may 
40.11 	apply separate or modified criteria among those projects falling within each classification.

40.12 	Sec. 9. Minnesota Statutes 2016, section 161.088, subdivision 7, is amended to read:
40.13 		Subd. 7.Legislative report; evaluation. (a) Starting in 2014, Annually by November 
40.14 	1, the commissioner shall electronically submit a report on the corridors of commerce 
40.15 	program to the chairs and ranking minority members of the legislative committees with 
40.16 	jurisdiction over transportation policy and finance. At a minimum, the report must include:
40.17 	(1) a summary of the program, including a review of the:
40.18 	(i) project selection process details that address program design and implementation, 
40.19 	decision-making procedures, and eligibility and criteria, evaluation; and
40.20 	(ii) all criteria including any established by the commissioner, criteria measurement 
40.21 	methodologies, and any criteria weighting or ranking used in project selection;
40.22 	(2) a summary of program finance, including funds expended in the previous selection 
40.23 	cycle, any future operating costs assigned under subdivision 6, and total funds expended 
40.24 	since program inception;
40.25 	(2) (3) a listing list of projects funded under the program in the previous selection cycle, 
40.26 	including:
40.27 	(i) project classification;
40.28 	(ii) a breakdown of project costs and funding sources; and
40.29 	(iii) any future operating costs assigned under subdivision 6; and
40.30 	(iv) a brief project description that is comprehensible to a lay audience;
41.1 	(3) (4) a listing comprehensive list of evaluated projects and candidate project 
41.2 	recommendations as required under subdivision 5, paragraph (b), including that identifies 
41.3 	for each project: eligibility, classification, evaluation results for each criterion, ranking if 
41.4 	applicable, and disposition in the selection process; and
41.5 	(4) (5) any recommendations for changes to statutory requirements of the program.
41.6 	(b) Starting in 2016, and in every even-numbered year thereafter In every third year 
41.7 	following a year in which project selection is completed, but not more frequently than every 
41.8 	other year, the commissioner shall must incorporate into the report the results of an 
41.9 	independent evaluation of impacts and effectiveness of the program. The evaluation must 
41.10 	be performed by agency staff or a consultant. The individual or individuals performing the 
41.11 	evaluation must have experience in program evaluation, but must not be regularly involved 
41.12 	in the program's implementation.
41.13 	(c) Notwithstanding paragraph (a), a report is not required in a year in which:
41.14 	(1) no project selection was completed during the preceding 12 months; and
41.15 	(2) an evaluation under paragraph (b) is not due.

41.16 	Sec. 10. Minnesota Statutes 2016, section 161.115, subdivision 190, is amended to read:
41.17 		Subd. 190.Route No. 259. Beginning at a point on Statutory Route No. 100, at or near 
41.18 	Henderson; thence extending in a general southeasterly direction to a point on Statutory 
41.19 	Route No. 123, at or near Le Sueur.

41.20 	EFFECTIVE DATE. This section is effective the day after the commissioner of 
41.21 	transportation receives a copy of the agreement between the commissioner of transportation 
41.22 	and the governing body of Le Sueur County to transfer jurisdiction of Legislative Route 
41.23 	No. 123 and after the commissioner notifies the revisor of statutes under section 107, 
41.24 	paragraph (b).

41.25 	Sec. 11. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
41.26 	read:
41.27 		Subd. 83.Chip A. Imker Memorial Highway. That segment of marked Trunk Highway 
41.28 	65 from Isanti County State-Aid Highway 19, known as 305th Avenue NE, to the northerly 
41.29 	limit of Cambridge Township is designated as "Chip A. Imker Memorial Highway." Subject 
41.30 	to section 161.139, the commissioner shall adopt a suitable design to mark this highway 
41.31 	and erect appropriate signs.

42.1 	Sec. 12. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
42.2 	read:
42.3 		Subd. 84.Medal of Honor Recipient Kenneth L. Olson Highway. That segment of 
42.4 	marked Trunk Highway 23 within the city of Paynesville and the town of Paynesville is 
42.5 	designated as "Medal of Honor Recipient Kenneth L. Olson Highway." Subject to section 
42.6 	161.139, the commissioner shall adopt a suitable design to mark this highway and erect 
42.7 	appropriate signs.

42.8 	Sec. 13. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
42.9 	read:
42.10 		Subd. 85.Corporal Benjamin S. Kopp Bridge. The bridge on Dakota County State-Aid 
42.11 	Highway 46, known as Brandel Drive within the city of Coates, over marked U.S. Highway 
42.12 	52 is designated as "Corporal Benjamin S. Kopp Bridge." Subject to section 161.139, the 
42.13 	commissioner shall adopt a suitable design to mark this highway and erect appropriate signs.

42.14 	Sec. 14. Minnesota Statutes 2016, section 161.321, subdivision 6, is amended to read:
42.15 		Subd. 6.Rules; eligibility. (a) The rules adopted by the commissioner of administration 
42.16 	to define small businesses and to set time and other eligibility requirements for participation 
42.17 	in programs under sections 16C.16 to 16C.19 apply to this section. The commissioner may 
42.18 	promulgate other rules necessary to carry out this section.
42.19 	(b) In addition to other eligibility requirements, a small targeted group business or 
42.20 	veteran-owned small business is eligible for the bid preferences under this section only for 
42.21 	eight years following the latest of:
42.22 	(1) May 1, 2012;
42.23 	(2) for a targeted group business, the date of initial certification by the commissioner of 
42.24 	administration, as provided under section 16C.19;
42.25 	(3) for a veteran-owned small business, the date of initial certification by the United 
42.26 	States Department of Veterans Affairs, as provided under section 16C.19, paragraph (d); 
42.27 	or
42.28 	(4) for a veteran-owned small business, the release or discharge of any one of the owners 
42.29 	from military active service, as defined in section 190.05, subdivision 5, lasting for a period 
42.30 	of 179 days or longer.

43.1 	Sec. 15. Minnesota Statutes 2016, section 161.38, is amended by adding a subdivision to 
43.2 	read:
43.3 		Subd. 8.Spending on trunk highway system. The commissioner must maintain 
43.4 	information on expenditures by local road authorities from local funding sources for trunk 
43.5 	highway system projects.

43.6 	Sec. 16. Minnesota Statutes 2016, section 161.44, subdivision 5, is amended to read:
43.7 		Subd. 5.Conveyance to highest bidder in certain cases. If the larger tract has been 
43.8 	platted into lots or divided into smaller tracts and the commissioner elects to proceed under 
43.9 	this subdivision, or if the lands constituted an entire tract and the person from whom the 
43.10 	lands were acquired and the person's spouse are deceased, or if the offers as provided for 
43.11 	are not accepted and the amount of money not tendered within the time prescribed, the lands 
43.12 	may be sold and conveyed to the owner of the land abutting upon the lands in the same 
43.13 	manner and under the same terms provided under subdivision 2, or the commissioner may 
43.14 	sell the lands to the highest responsible bidder upon three weeks' published notice of such 
43.15 	sale in a newspaper or other periodical of general circulation in the general area where the 
43.16 	lands are located. All bids may be rejected and new bids received upon like advertisement.

43.17 	Sec. 17. Minnesota Statutes 2016, section 161.44, subdivision 6a, is amended to read:
43.18 		Subd. 6a.Services of licensed real estate broker. If the lands remain unsold after being 
43.19 	offered for sale to the highest bidder are withdrawn from sale under subdivision 6b, the 
43.20 	commissioner may retain the services of a licensed real estate broker to find a buyer. The 
43.21 	sale price may be negotiated by the broker, but must not be less than 90 percent of the 
43.22 	appraised market value as determined by the commissioner. The broker's fee must be 
43.23 	established by prior agreement between the commissioner and the broker, and must not 
43.24 	exceed ten percent of the sale price for sales of $10,000 or more. The broker's fee must be 
43.25 	paid to the broker from the proceeds of the sale.

43.26 	Sec. 18. Minnesota Statutes 2016, section 161.44, is amended by adding a subdivision to 
43.27 	read:
43.28 		Subd. 6b.Unsold lands. If lands remain unsold after being offered for sale to the highest 
43.29 	bidder, the commissioner may offer the remaining lands to any person who agrees to pay 
43.30 	the minimum bid established for the public sale. The sale must continue until all eligible 
43.31 	lands have been sold or the commissioner withdraws the remaining lands from sale. The 
43.32 	lands to be sold must be listed on the department's Unsold Property Inventory list.

44.1 	Sec. 19. Minnesota Statutes 2016, section 162.145, subdivision 2, is amended to read:
44.2 		Subd. 2.Small cities assistance account. A small cities assistance account is created 
44.3 	in the special revenue transportation priorities fund. The account consists of funds as provided 
44.4 	by law, and any other money donated, allotted, transferred, or otherwise provided to the 
44.5 	account. Money in the account may only be expended as provided under this section.

44.6 	Sec. 20. Minnesota Statutes 2016, section 168.021, subdivision 1, is amended to read:
44.7 		Subdivision 1.Disability plates; application. (a) When a motor vehicle registered under 
44.8 	section 168.017, a motorcycle, a motorized bicycle, a one-ton pickup truck, or a self-propelled 
44.9 	recreational vehicle is owned or primarily operated by a permanently physically disabled 
44.10 	person or a custodial parent or guardian of a permanently physically disabled minor person, 
44.11 	the owner may apply for and secure from the commissioner (1) immediately, a temporary 
44.12 	permit valid for 30 days if the applicant is eligible for the disability plates issued under this 
44.13 	section and (2) two disability plates with attached emblems, one plate to be attached to the 
44.14 	front, and one to the rear of the motor vehicle, truck, or recreational vehicle, or, in the case 
44.15 	of a motorcycle or a motorized bicycle, one disability plate the same size as a regular 
44.16 	motorcycle plate.
44.17 	(b) The commissioner shall not issue more than one plate to the owner of a motorcycle 
44.18 	or a motorized bicycle and not more than one set of plates to any owner of another vehicle 
44.19 	described in paragraph (a) at the same time unless the state Council on Disability approves 
44.20 	the issuance of a second plate or set of plates to an owner.
44.21 	(c) When the owner first applies for the disability plate or plates, the owner must submit 
44.22 	a medical statement in a format approved by the commissioner under section 169.345, or 
44.23 	proof of physical disability provided for in that section.
44.24 	(d) No medical statement or proof of disability is required when an owner applies for a 
44.25 	plate or plates for one or more vehicles listed in paragraph (a) that are specially modified 
44.26 	for and used exclusively by permanently physically disabled persons.
44.27 	(e) The owner of a vehicle listed in paragraph (a) may apply for and secure (i) 
44.28 	immediately, a permit valid for 30 days, if the applicant is eligible to receive the disability 
44.29 	plate or plates issued under this section, and (ii) a disability plate or plates for the vehicle 
44.30 	if:
44.31 	(1) the owner employs a permanently physically disabled person who would qualify for 
44.32 	the disability plate or plates under this section; and
45.1 	(2) the owner furnishes the motor vehicle to the physically disabled person for the 
45.2 	exclusive use of that person in the course of employment.

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

45.4 	Sec. 21. Minnesota Statutes 2016, section 168.021, subdivision 2, is amended to read:
45.5 		Subd. 2.Plate design; furnished by commissioner. The commissioner shall design 
45.6 	and furnish two disability plates, or one disability plate for a motorcycle or a motorized 
45.7 	bicycle that is the same size as a regular motorcycle plate, with attached emblem or emblems 
45.8 	to an eligible owner. The emblem must bear the internationally accepted wheelchair symbol, 
45.9 	as designated in section 326B.106, subdivision 9, approximately three inches square. The 
45.10 	emblem must be large enough to be visible plainly from a distance of 50 feet. An applicant 
45.11 	eligible for a disability plate or plates shall pay the motor vehicle registration fee authorized 
45.12 	by sections 168.013 and 168.09.

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

45.14 	Sec. 22. Minnesota Statutes 2016, section 168.021, subdivision 2a, is amended to read:
45.15 		Subd. 2a.Plate transfer. (a) When ownership of a vehicle described in subdivision 1, 
45.16 	is transferred, the owner of the vehicle shall remove the disability plate or plates. The buyer 
45.17 	of the motor vehicle is entitled to receive a regular plate or plates for the vehicle without 
45.18 	further cost for the remainder of the registration period.
45.19 	(b) Notwithstanding section 168.12, subdivision 1, the disability plate or plates may be 
45.20 	transferred to a replacement vehicle on notification to the commissioner. However, the 
45.21 	disability plate or plates may not be transferred unless the replacement vehicle (1) is listed 
45.22 	under section 168.012, subdivision 1, and, in case of a single plate for a motorcycle or a 
45.23 	motorized bicycle, the replacement vehicle is a motorcycle or a motorized bicycle, and (2) 
45.24 	is owned or primarily operated by the permanently physically disabled person.

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

45.26 	Sec. 23. [168.1256] SPECIAL RETIRED LAW ENFORCEMENT PLATES.
45.27 		Subdivision 1.Issuance of plates. The commissioner shall issue special retired law 
45.28 	enforcement license plates or a single motorcycle plate to an applicant who:
45.29 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
45.30 	truck, motorcycle, or recreational vehicle;
46.1 	(2) is a retired peace officer as defined in section 626.84, subdivision 1, paragraph (c) 
46.2 	or (d);
46.3 	(3) provides a letter from the chief law enforcement officer affirming that the applicant 
46.4 	is a retired peace officer who served ten or more years and separated in good standing;
46.5 	(4) pays a fee of $10 for each set of plates, along with any other fees required by this 
46.6 	chapter;
46.7 	(5) pays the registration tax as required under section 168.013; and
46.8 	(6) complies with this chapter and rules governing registration of motor vehicles and 
46.9 	licensing of drivers.
46.10 		Subd. 2.Design. The commissioner shall design an emblem and inscription for the 
46.11 	special plates, in consultation with interested law enforcement agencies and organizations.
46.12 		Subd. 3.Plates transfer. On application to the commissioner and payment of a transfer 
46.13 	fee of $5, special plates issued under this section may be transferred to another motor vehicle 
46.14 	if the subsequent vehicle is:
46.15 	(1) qualified under subdivision 1, clause (1), to bear the special plates; and
46.16 	(2) registered to the same individual to whom the special plates were originally issued.
46.17 		Subd. 4.Exemption. Special plates issued under this section are not subject to section 
46.18 	168.1293, subdivision 2.

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

46.21 	Sec. 24. [168.1257] SPECIAL LAW ENFORCEMENT MEMORIAL PLATES.
46.22 		Subdivision 1.Issuance of plates. The commissioner shall issue special law enforcement 
46.23 	memorial license plates or a single motorcycle plate to an applicant who:
46.24 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
46.25 	truck, motorcycle, or recreational vehicle;
46.26 	(2) pays an additional fee of $10 for each set of plates;
46.27 	(3) pays the registration tax as required under section 168.013, along with any other fees 
46.28 	required by this chapter;
46.29 	(4) contributes $25 upon initial application and a minimum of $5 annually to the 
46.30 	Minnesota law enforcement memorial account; and
47.1 	(5) complies with this chapter and rules governing registration of motor vehicles and 
47.2 	licensing of drivers.
47.3 		Subd. 2.Design. The commissioner shall adopt a suitable design for the plate that must 
47.4 	include a black line with a blue line of equal proportion above and below the black line, 
47.5 	representing the thin blue line.
47.6 		Subd. 3.Plates transfer. On application to the commissioner and payment of a transfer 
47.7 	fee of $5, special plates may be transferred to another motor vehicle if the subsequent vehicle 
47.8 	is:
47.9 	(1) qualified under subdivision (1), clause (1), to bear the special plates; and
47.10 	(2) registered to the same individual to whom the special plates were originally issued.
47.11 		Subd. 4.Exemption. Special plates issued under this section are not subject to section 
47.12 	168.1293, subdivision 2.
47.13 		Subd. 5.Fees. Fees collected under subdivision 1, clauses (2) and (3), and subdivision 
47.14 	3 are credited to the vehicle services operating account in the special revenue fund.
47.15 		Subd. 6.Contributions; memorial account; appropriation. Contributions collected 
47.16 	under subdivision 1, clause (4), must be deposited in the Minnesota law enforcement 
47.17 	memorial account, which is established in the special revenue fund. Money in the account 
47.18 	is appropriated to the commissioner of public safety. This appropriation is first for the annual 
47.19 	cost of administering the account funds, and the remaining funds are for distribution to the 
47.20 	Minnesota Law Enforcement Memorial Association, to be used to further the mission of 
47.21 	the association in assisting the families and home agencies of Minnesota law enforcement 
47.22 	officers who have died in the line of duty.

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

47.25 	Sec. 25. [168.1294] SPECIAL "START SEEING MOTORCYCLES" PLATES.
47.26 		Subdivision 1.Issuance of plates. The commissioner shall issue special "Start Seeing 
47.27 	Motorcycles" license plates or a single motorcycle plate to an applicant who:
47.28 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
47.29 	truck, motorcycle, or recreational vehicle;
47.30 	(2) pays a fee of $10 for each set of plates;
48.1 	(3) pays the registration tax as required under section 168.013, along with any other fees 
48.2 	required by this chapter;
48.3 	(4) contributes a minimum of $10 annually to the motorcycle safety fund, created under 
48.4 	section 171.06, subdivision 2a, paragraph (a), clause (1); and
48.5 	(5) complies with this chapter and rules governing registration of motor vehicles and 
48.6 	licensing of drivers.
48.7 		Subd. 2.Design. The representatives of American Bikers for Awareness, Training, and 
48.8 	Education of Minnesota shall design the special plate to contain the inscription "Start Seeing 
48.9 	Motorcycles" between the bolt holes on the bottom of the plate with a design area on the 
48.10 	left side of the plate, subject to the approval of the commissioner.
48.11 		Subd. 3.Plates transfer. On application to the commissioner and payment of a transfer 
48.12 	fee of $5, special plates issued under this section may be transferred to another motor vehicle 
48.13 	if the subsequent vehicle is:
48.14 	(1) qualified under subdivision 1, clause (1), to bear the special plates; and
48.15 	(2) registered to the same individual to whom the special plates were originally issued.
48.16 		Subd. 4.Exemption. Special plates issued under this section are not subject to section 
48.17 	168.1293, subdivision 2.
48.18 		Subd. 5.Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are 
48.19 	credited to the vehicle services operating account in the special revenue fund.
48.20 		Subd. 6.No refund. Contributions made under this section must not be refunded.

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

48.23 	Sec. 26. Minnesota Statutes 2016, section 168.27, is amended by adding a subdivision to 
48.24 	read:
48.25 		Subd. 31.Documentary fee. A motor vehicle dealer may not charge a documentary fee 
48.26 	or document administration fee in excess of $150 for services actually rendered to, for, or 
48.27 	on behalf of the retail buyer or lessee to prepare, handle, and process documents for the 
48.28 	closing of a motor vehicle retail sale or lease. The fee must be separately stated on the sales 
48.29 	agreement maintained under Minnesota Rules, part 7400.5200, and may be excluded from 
48.30 	the dealer's advertised price. "Documentary fee" and "document administration fee" do not 
48.31 	include an optional electronic transfer fee as defined under section 53C.01, subdivision 14.

49.1 	Sec. 27. Minnesota Statutes 2016, section 168.33, subdivision 2, is amended to read:
49.2 		Subd. 2.Deputy registrars. (a) The commissioner may appoint, and for cause 
49.3 	discontinue, a deputy registrar for any statutory or home rule charter city as the public 
49.4 	interest and convenience may require, without regard to whether the county auditor of the 
49.5 	county in which the city is situated has been appointed as the deputy registrar for the county 
49.6 	or has been discontinued as the deputy registrar for the county, and without regard to whether 
49.7 	the county in which the city is situated has established a county license bureau that issues 
49.8 	motor vehicle licenses as provided in section 373.32.
49.9 	(b) The commissioner may appoint, and for cause discontinue, a deputy registrar for any 
49.10 	statutory or home rule charter city as the public interest and convenience may require, if 
49.11 	the auditor for the county in which the city is situated chooses not to accept appointment 
49.12 	as the deputy registrar for the county or is discontinued as a deputy registrar, or if the county 
49.13 	in which the city is situated has not established a county license bureau that issues motor 
49.14 	vehicle licenses as provided in section 373.32.
49.15 	(c) The commissioner may appoint, and for cause discontinue, the county auditor of 
49.16 	each county as a deputy registrar.
49.17 	(d) Despite any other provision, a person other than a county auditor or a director of a 
49.18 	county license bureau, who was appointed by the registrar before August 1, 1976, as a 
49.19 	deputy registrar for any statutory or home rule charter city, may continue to serve as deputy 
49.20 	registrar and may be discontinued for cause only by the commissioner. The county auditor 
49.21 	who appointed the deputy registrars is responsible for the acts of deputy registrars appointed 
49.22 	by the auditor.
49.23 	(e) Each deputy, before entering upon the discharge of duties, shall take and subscribe 
49.24 	an oath to faithfully discharge the duties and to uphold the laws of the state.
49.25 	(f) If a deputy registrar appointed under this subdivision is not an officer or employee 
49.26 	of a county or statutory or home rule charter city, the deputy shall in addition give bond to 
49.27 	the state in the sum of $10,000, or a larger sum as may be required by the commissioner, 
49.28 	conditioned upon the faithful discharge of duties as deputy registrar.
49.29 	(g) A corporation governed by chapter 302A or 317A may be appointed a deputy registrar. 
49.30 	Upon application by an individual serving as a deputy registrar and the giving of the requisite 
49.31 	bond as provided in this subdivision, personally assured by the individual or another 
49.32 	individual approved by the commissioner, a corporation named in an application then 
49.33 	becomes the duly appointed and qualified successor to the deputy registrar.
50.1 	(h) Each deputy registrar appointed under this subdivision shall keep and maintain office 
50.2 	locations approved by the commissioner for the registration of vehicles and the collection 
50.3 	of taxes and fees on vehicles.
50.4 	(i) The deputy registrar shall keep records and make reports to the commissioner as the 
50.5 	commissioner requires. The records must be maintained at the offices of the deputy registrar.
50.6 	in a manner that complies with sections 13.05, subdivision 5, and 13.055. As an alternative 
50.7 	to paper copy storage, a deputy registrar may retain records and documents in a secure 
50.8 	electronic medium that complies with the security requirements under the United States 
50.9 	Federal Bureau of Investigation, Criminal Justice Information Services Division, Policy 5.4 
50.10 	or any successor policy, provided 60 days have elapsed since the transaction and subject to 
50.11 	standards established by the commissioner. The deputy registrar is responsible for all costs 
50.12 	associated with the conversion to electronic records and maintenance of the electronic 
50.13 	storage medium, including the destruction of existing paper records after conversion to the 
50.14 	electronic format. All queries and responses in the secure electronic medium, and all actions 
50.15 	in which data are entered, updated, accessed, or shared or disseminated by the deputy 
50.16 	registrar must be contained in a data audit trail. Data contained in the audit trail are public 
50.17 	to the extent the data are not otherwise classified under this section. The records and offices 
50.18 	of the deputy registrar must at all times be open to the inspection of the commissioner or 
50.19 	the commissioner's agents. The deputy registrar shall report to the commissioner by the 
50.20 	next working day following receipt all registrations made and taxes and fees collected by 
50.21 	the deputy registrar.
50.22 	(j) The filing fee imposed under subdivision 7 must be deposited in the treasury of the 
50.23 	place for which appointed or, if not a public official, a deputy shall retain the filing fee, but 
50.24 	the registration tax and any additional fees for delayed registration the deputy registrar has 
50.25 	collected the deputy registrar shall deposit by the next working day following receipt in an 
50.26 	approved state depository to the credit of the state through the commissioner of management 
50.27 	and budget. The place for which the deputy registrar is appointed through its governing 
50.28 	body must provide the deputy registrar with facilities and personnel to carry out the duties 
50.29 	imposed by this subdivision if the deputy is a public official. In all other cases, the deputy 
50.30 	shall maintain a suitable facility for serving the public.

50.31 	Sec. 28. Minnesota Statutes 2016, section 168A.09, subdivision 1, is amended to read:
50.32 		Subdivision 1.Application, issuance, form, bond, and notice. (a) In the event a 
50.33 	certificate of title is lost, stolen, mutilated, or destroyed, or becomes illegible, the owner or 
50.34 	legal representative of the owner named in the certificate may make submit an application 
51.1 	to the department or a deputy registrar for a duplicate in a format prescribed by the 
51.2 	department. The department shall or deputy registrar must issue a duplicate certificate of 
51.3 	title if satisfied that the applicant is entitled thereto to the duplicate certificate of title. The 
51.4 	duplicate certificate of title shall must be plainly marked as a duplicate and mailed or 
51.5 	delivered to the owner. The department shall or deputy registrar must indicate in its the 
51.6 	driver and vehicle information system records that a duplicate certificate of title has been 
51.7 	issued. As a condition to issuing a duplicate certificate of title, the department may require 
51.8 	a bond from the applicant in the manner and format prescribed in section 168A.07, 
51.9 	subdivision 1, clause (2). The duplicate certificate of title shall contain the legend: "This 
51.10 	duplicate certificate of title may be subject to the rights of a person under the original 
51.11 	certificate."
51.12 	(b) On and after the effective date of this section, the commissioner must allow duplicate 
51.13 	certificate of title issuance by a deputy registrar subject to procedures established by the 
51.14 	commissioner.

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

51.16 	Sec. 29. Minnesota Statutes 2016, section 169.011, subdivision 34, is amended to read:
51.17 		Subd. 34.Head Start bus. (a) "Head Start bus" means a motor vehicle used to transport 
51.18 	children and parents to or from a Head Start facility, or to or from Head Start-related 
51.19 	activities, by the Head Start grantee, or by someone under an agreement with the Head Start 
51.20 	grantee. A Head Start bus does not include a motor vehicle transporting children or parents 
51.21 	to or from a Head Start facility for which parents or guardians receive direct compensation 
51.22 	from a Head Start grantee, a motor coach operating under charter carrier authority, or a 
51.23 	transit bus providing services as defined in section 174.22, subdivision 7. A Head Start bus 
51.24 	may be a type A, B, C, or D bus or type III vehicle, as described in subdivision 71.
51.25 	(b) A Head Start bus manufactured after December 31, 1994, must meet the same 
51.26 	standards as a type A, B, C, or D school bus, except that a Head Start bus is not required to 
51.27 	be equipped with the warning signals required for a school bus under section 169.442, 
51.28 	subdivision 1. A Head Start bus that is not equipped as a school bus must be painted colors 
51.29 	other than national school bus yellow.

51.30 	Sec. 30. Minnesota Statutes 2016, section 169.18, subdivision 5, is amended to read:
51.31 		Subd. 5.Driving left of roadway center; exception. (a) No vehicle shall be driven to 
51.32 	the left side of the center of the roadway in overtaking and passing another vehicle proceeding 
51.33 	in the same direction unless such left side is clearly visible and is free of oncoming traffic 
52.1 	for a sufficient distance ahead to permit such overtaking and passing to be completely made 
52.2 	without interfering with the safe operation of any vehicle approaching from the opposite 
52.3 	direction or any vehicle overtaken. In every event the overtaking vehicle must return to the 
52.4 	right-hand side of the roadway before coming within 100 feet of any vehicle approaching 
52.5 	from the opposite direction.
52.6 	(b) Except on a one-way roadway, no vehicle shall, in overtaking and passing another 
52.7 	vehicle or at any other time, be driven to the left half of the roadway under the following 
52.8 	conditions:
52.9 	(1) when approaching the crest of a grade or upon a curve in the highway where the 
52.10 	driver's view along the highway is obstructed within a distance of 700 feet;
52.11 	(2) when approaching within 100 feet of any underpass or tunnel, railroad grade crossing, 
52.12 	intersection within a city, or intersection outside of a city if the presence of the intersection 
52.13 	is marked by warning signs; or
52.14 	(3) where official signs are in place prohibiting passing, or a distinctive centerline is 
52.15 	marked, which distinctive line also so prohibits passing, as declared in the Manual on 
52.16 	Uniform Traffic Control Devices adopted by the commissioner.
52.17 	(c) Notwithstanding paragraph (b), clause (3), a motor vehicle may be driven to the left 
52.18 	side of the roadway to safely overtake a bicycle under the following circumstances:
52.19 	(1) the bicycle is proceeding in the same direction as the motor vehicle;
52.20 	(2) the driver of the motor vehicle either (i) provides a safe clearance distance, in no 
52.21 	case less than the greater of three feet or one-half the width of the motor vehicle, or (ii) 
52.22 	completely enters the left lane of the highway;
52.23 	(3) the operator of the bicycle is not (i) making a left turn, or (ii) signaling that the bicycle 
52.24 	operator intends to make a left turn; and
52.25 	(4) the driver of the motor vehicle complies with all other applicable requirements under 
52.26 	this section.

52.27 	Sec. 31. Minnesota Statutes 2016, section 169.345, subdivision 1, is amended to read:
52.28 		Subdivision 1.Scope of privilege. (a) A vehicle described in section 168.021, subdivision 
52.29 	1, paragraph (a), that prominently displays the certificate authorized by this section or that 
52.30 	bears the disability plate or plates issued under section 168.021 may be parked by or solely 
52.31 	for the benefit of a physically disabled person:
52.32 	(1) in a designated parking space for disabled persons, as provided in section 169.346;
53.1 	(2) in a metered parking space without obligation to pay the meter fee and without time 
53.2 	restrictions unless time restrictions are separately posted on official signs; and
53.3 	(3) without time restrictions in a nonmetered space where parking is otherwise allowed 
53.4 	for passenger vehicles but restricted to a maximum period of time and that does not 
53.5 	specifically prohibit the exercise of disabled parking privileges in that space.
53.6 	A person may park the vehicle for a physically disabled person in a parking space described 
53.7 	in clause (1) or (2) only when actually transporting the physically disabled person for the 
53.8 	sole benefit of that person and when the parking space is within a reasonable distance from 
53.9 	the drop-off point.
53.10 	(b) For purposes of this subdivision, a certificate is prominently displayed if it is displayed 
53.11 	so that it may be viewed from the front and rear of the motor vehicle by hanging it from the 
53.12 	rearview mirror attached to the front windshield of the motor vehicle or, in the case of a 
53.13 	motorcycle or a motorized bicycle, is secured to the vehicle. If there is no rearview mirror 
53.14 	or if the certificate holder's disability precludes placing the certificate on the mirror, the 
53.15 	certificate must be displayed on the dashboard of the vehicle. No part of the certificate may 
53.16 	be obscured.
53.17 	(c) Notwithstanding paragraph (a), clauses (1), (2), and (3), this section does not permit 
53.18 	parking in areas prohibited by sections 169.32 and 169.34, in designated no parking spaces, 
53.19 	or in parking spaces reserved for specified purposes or vehicles. A local governmental unit 
53.20 	may, by ordinance, prohibit parking on any street or highway to create a fire lane, or to 
53.21 	accommodate heavy traffic during morning and afternoon rush hours and these ordinances 
53.22 	also apply to physically disabled persons.

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

53.24 	Sec. 32. Minnesota Statutes 2016, section 169.345, subdivision 3, is amended to read:
53.25 		Subd. 3.Identifying certificate. (a) The commissioner shall issue (1) immediately, a 
53.26 	permit valid for 30 days if the person is eligible for the certificate issued under this section 
53.27 	and (2) an identifying certificate for a vehicle described in section 168.021, subdivision 1, 
53.28 	paragraph (a), when a physically disabled applicant submits proof of physical disability 
53.29 	under subdivision 2a. The commissioner shall design separate certificates for persons with 
53.30 	permanent and temporary disabilities that can be readily distinguished from each other from 
53.31 	outside a vehicle at a distance of 25 feet or, in the case of a motorcycle or a motorized 
53.32 	bicycle, can be readily secured to the motorcycle or motorized bicycle. An applicant may 
54.1 	be issued up to two certificates if the applicant has not been issued disability plates under 
54.2 	section 168.021.
54.3 	(b) The operator of a vehicle displaying a certificate has the parking privileges provided 
54.4 	in subdivision 1 only while the vehicle is actually parked while transporting a physically 
54.5 	disabled person.
54.6 	(c) The commissioner shall cancel all certificates issued to an applicant who fails to 
54.7 	comply with the requirements of this subdivision.

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

54.9 	Sec. 33. Minnesota Statutes 2016, section 169.444, subdivision 2, is amended to read:
54.10 		Subd. 2.Violations by drivers; penalties. (a) A person who fails to stop a vehicle or 
54.11 	to keep it stopped, as required in subdivision 1, or who violates subdivision 1a, is guilty of 
54.12 	a misdemeanor punishable by a fine of not less than $300 $500.
54.13 	(b) A person is guilty of a gross misdemeanor if the person fails to stop a motor vehicle 
54.14 	or to keep it stopped, as required in subdivision 1, or who violates subdivision 1a, and 
54.15 	commits either or both of the following acts:
54.16 	(1) passes or attempts to pass the school bus in a motor vehicle on the right-hand, 
54.17 	passenger-door side of the bus; or
54.18 	(2) passes or attempts to pass the school bus in a motor vehicle when a school child is 
54.19 	outside of and on the street or highway used by the school bus or on the adjacent sidewalk.

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

54.22 	Sec. 34. Minnesota Statutes 2016, section 169.449, subdivision 1, is amended to read:
54.23 		Subdivision 1.Rules. The commissioner of public safety shall adopt rules governing 
54.24 	the operation of school buses used for transportation of school children, when owned or 
54.25 	operated by a school or privately owned and operated under a contract with a school, and 
54.26 	these rules must be made a part of that contract by reference. Each school, its officers and 
54.27 	employees, and each person employed under the contract is subject to these rules.

55.1 	Sec. 35. [169.8295] WEIGHT LIMITS; VEHICLES TRANSPORTING MILK.
55.2 		Subdivision 1.Weight limits increase. (a) The weight limitations under sections 169.823 
55.3 	to 169.829 are increased by ten percent for a single-unit vehicle transporting fluid milk from 
55.4 	the point of production to:
55.5 	(1) another point of production for additional loading; or
55.6 	(2) the point of first processing.
55.7 	(b) Notwithstanding sections 169.824, subdivision 1, paragraph (d); 169.826, subdivision 
55.8 	3; or other law to the contrary, a permit is not required to operate a vehicle under this section.
55.9 	(c) The seasonal weight increases under section 169.826, subdivision 1, do not apply to 
55.10 	a vehicle operated under this section.
55.11 		Subd. 2.Requirements; restrictions. A vehicle operated under this section:
55.12 	(1) is subject to seasonal load restrictions under section 169.87, except as otherwise 
55.13 	provided under section 169.87, subdivision 4;
55.14 	(2) is subject to bridge load limits posted under section 169.84; and
55.15 	(3) must not be operated with a load that exceeds the tire manufacturer's recommended 
55.16 	load, the manufacturer's gross vehicle weight rating as affixed to the vehicle, or other 
55.17 	certification of gross vehicle weight rating under Code of Federal Regulations, title 49, 
55.18 	sections 567.4 to 567.7.

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

55.20 	Sec. 36. Minnesota Statutes 2016, section 169.865, subdivision 3, is amended to read:
55.21 		Subd. 3.Requirements; restrictions. (a) A vehicle or combination of vehicles operating 
55.22 	under this section:
55.23 	(1) is subject to axle weight limitations under section 169.824, subdivision 1;
55.24 	(2) is subject to seasonal load restrictions under section 169.87;
55.25 	(3) is subject to bridge load limits posted under section 169.84;
55.26 	(4) may only be operated on paved streets and highways other than interstate highways;
55.27 	(5) may not be operated with loads that exceed the manufacturer's gross vehicle weight 
55.28 	rating as affixed to the vehicle, or other certification of gross vehicle weight rating complying 
55.29 	with Code of Federal Regulations, title 49, sections 567.4 to 567.7;
56.1 	(6) must be issued a permit from each road authority having jurisdiction over a road on 
56.2 	which the vehicle is operated, if required;
56.3 	(7) must comply with the requirements of section 169.851, subdivision 4; and
56.4 	(8) must have brakes on all wheels.
56.5 	(b) The percentage allowances for exceeding gross weights if transporting unfinished 
56.6 	forest products under section 168.013, subdivision 3, paragraph (b), or for the first haul of 
56.7 	unprocessed or raw farm products or unfinished forest products under section 168.013, 
56.8 	subdivision 3, paragraph (d), clause (3), do not apply to a vehicle or combination of vehicles 
56.9 	operated under this section.
56.10 	(c) Notwithstanding paragraph (a), clause (4), a vehicle or combination of vehicles 
56.11 	hauling fluid milk under a permit issued by the commissioner of transportation may also 
56.12 	operate on interstate highways as provided under United States Code, title 23, section 127.

56.13 	Sec. 37. [169.869] SPECIAL CONSTRUCTION MATERIALS PERMIT.
56.14 		Subdivision 1.Definition. For purposes of this section, "construction materials" means 
56.15 	highway construction materials, building construction materials, and associated demolition 
56.16 	materials, including but not limited to aggregate material as defined in section 298.75, 
56.17 	subdivision 1, paragraph (a), hot mix asphalt, plastic concrete, cementitious materials, 
56.18 	concrete admixtures, asphalt cement, construction demolition materials, and recycled road 
56.19 	materials.
56.20 		Subd. 2.Six-axle vehicles. (a) The commissioner of transportation may issue an annual 
56.21 	permit authorizing a vehicle or combination of vehicles with a total of six or more axles to 
56.22 	haul construction materials and be operated with a gross vehicle weight of up to:
56.23 	(1) 90,000 pounds; and
56.24 	(2) 99,000 pounds during the period set by the commissioner under section 169.826, 
56.25 	subdivision 1.
56.26 	(b) The fee for a permit issued under this subdivision is $300, or a proportional amount 
56.27 	as provided in section 169.86, subdivision 5.
56.28 		Subd. 3.Seven-axle vehicles. (a) The commissioner of transportation may issue an 
56.29 	annual permit authorizing a vehicle or combination of vehicles with a total of seven or more 
56.30 	axles to haul construction materials and be operated with a gross vehicle weight of up to:
56.31 	(1) 97,000 pounds; and
57.1 	(2) 99,000 pounds during the period set by the commissioner under section 169.826, 
57.2 	subdivision 1.
57.3 	(b) The fee for a permit issued under this subdivision is $500, or a proportional amount 
57.4 	as provided in section 169.86, subdivision 5.
57.5 		Subd. 4.Authority; restrictions. (a) A permit issued by the commissioner under this 
57.6 	section is valid for operation on highways regardless of jurisdiction, subject to paragraph 
57.7 	(b).
57.8 	(b) A vehicle or combination of vehicles operating under this section:
57.9 	(1) may only be operated on paved or unpaved streets and highways, other than interstate 
57.10 	highways;
57.11 	(2) must comply with the requirements and restrictions in section 169.865, subdivision 
57.12 	3, paragraph (a), clauses (1) to (3), (5), (7), and (8); and
57.13 	(3) must be operated in compliance with truck route requirements and vehicle weight 
57.14 	restrictions, as established under section 169.87, subdivision 1, by a local road authority or 
57.15 	the commissioner.
57.16 		Subd. 5.Revenues. Revenue from the permits issued by the commissioner under this 
57.17 	section must be deposited in the town bridge account. Revenue deposited under this 
57.18 	subdivision is available to inspect and post weight limits for town bridges.
57.19 		Subd. 6.Expiration date. Upon request of the permit applicant, the expiration date for 
57.20 	a permit issued under this section must be the same as the expiration date of the permitted 
57.21 	vehicle's registration.
57.22 		Subd. 7.Permit information. The commissioner must make information available to 
57.23 	local road authorities on an Internet Web site that identifies permit issuances under this 
57.24 	section and the counties in which a vehicle with a permit is intended to be operated.
57.25 		Subd. 8.Local preferred routes. A local road authority may identify local preferred 
57.26 	routes for operating a vehicle on local streets and highways under a permit issued in this 
57.27 	section. A holder of a permit issued in this section and any person seeking to apply for a 
57.28 	permit are encouraged to:
57.29 	(1) upon request of a local road authority, provide comment on identification of preferred 
57.30 	routes; and
57.31 	(2) make reasonable efforts to operate a vehicle on the preferred routes when operating 
57.32 	under the permit.

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

58.2 	Sec. 38. Minnesota Statutes 2016, section 171.02, subdivision 2b, is amended to read:
58.3 		Subd. 2b.Exception for type III vehicle drivers. (a) Notwithstanding subdivision 2, 
58.4 	the holder of a class A, B, C, or D driver's license, without a school bus endorsement, may 
58.5 	operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h), under 
58.6 	the conditions in paragraphs (b) through (o) this subdivision.
58.7 	(b) The operator is an employee of the entity that owns, leases, or contracts for the school 
58.8 	bus.
58.9 	(c) The operator's employer has adopted and implemented a policy that provides for 
58.10 	annual training and certification of the operator in:
58.11 	(1) safe operation of a type III vehicle;
58.12 	(2) understanding student behavior, including issues relating to students with disabilities;
58.13 	(3) encouraging orderly conduct of students on the bus and handling incidents of 
58.14 	misconduct appropriately;
58.15 	(4) knowing and understanding relevant laws, rules of the road, and local school bus 
58.16 	safety policies;
58.17 	(5) handling emergency situations;
58.18 	(6) proper use of seat belts and child safety restraints;
58.19 	(7) performance of pretrip vehicle inspections;
58.20 	(8) safe loading and unloading of students, including, but not limited to:
58.21 	(i) utilizing a safe location for loading and unloading students at the curb, on the nontraffic 
58.22 	side of the roadway, or at off-street loading areas, driveways, yards, and other areas to 
58.23 	enable the student to avoid hazardous conditions;
58.24 	(ii) refraining from loading and unloading students in a vehicular traffic lane, on the 
58.25 	shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;
58.26 	(iii) avoiding a loading or unloading location that would require a pupil to cross a road, 
58.27 	or ensuring that the driver or an aide personally escort the pupil across the road if it is not 
58.28 	reasonably feasible to avoid such a location;
58.29 	(iv) placing the type III vehicle in "park" during loading and unloading; and
59.1 	(v) escorting a pupil across the road under item (iii) only after the motor is stopped, the 
59.2 	ignition key is removed, the brakes are set, and the vehicle is otherwise rendered immobile; 
59.3 	and
59.4 	(9) compliance with paragraph (k), concerning reporting certain convictions to the 
59.5 	employer within ten days of the date of conviction.
59.6 	(d) A background check or background investigation of the operator has been conducted 
59.7 	that meets the requirements under section 122A.18, subdivision 8, or 123B.03 for school 
59.8 	district employees; section 144.057 or chapter 245C for day care employees; or section 
59.9 	171.321, subdivision 3, for all other persons operating a type III vehicle under this 
59.10 	subdivision.
59.11 	(e) Operators shall submit to a physical examination as required by section 171.321, 
59.12 	subdivision 2.
59.13 	(f) The operator's employer requires preemployment drug testing of applicants for 
59.14 	operator positions. Current operators must comply with the employer's policy under section 
59.15 	181.951, subdivisions 2, 4, and 5. Notwithstanding any law to the contrary, the operator's 
59.16 	employer may use a Breathalyzer or similar device to fulfill random alcohol testing 
59.17 	requirements.
59.18 	(g) The operator's driver's license is verified annually by the entity that owns, leases, or 
59.19 	contracts for the type III vehicle as required under section 171.321, subdivision 5.
59.20 	(h) A person who sustains a conviction, as defined under section 609.02, of violating 
59.21 	section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked under 
59.22 	sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of violating 
59.23 	or whose driver's license is revoked under a similar statute or ordinance of another state, is 
59.24 	precluded from operating a type III vehicle for five years from the date of conviction.
59.25 	(i) A person who has ever been convicted of a disqualifying offense as defined in section 
59.26 	171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under this 
59.27 	subdivision.
59.28 	(j) A person who sustains a conviction, as defined under section 609.02, of a moving 
59.29 	offense in violation of chapter 169 within three years of the first of three other moving 
59.30 	offenses is precluded from operating a type III vehicle for one year from the date of the last 
59.31 	conviction.
60.1 	(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) while 
60.2 	employed by the entity that owns, leases, or contracts for the school bus, shall report the 
60.3 	conviction to the employer within ten days of the date of the conviction.
60.4 	(l) An operator of a type III vehicle whose driver's license is suspended, revoked, 
60.5 	canceled, or disqualified by Minnesota, another state, or another jurisdiction must notify 
60.6 	the operator's employer in writing of the suspension, revocation, cancellation, lost privilege, 
60.7 	or disqualification. The operator must notify the operator's employer before the end of the 
60.8 	business day immediately following the day the operator received notice of the suspension, 
60.9 	revocation, cancellation, lost privilege, or disqualification.
60.10 	(m) Students riding the type III vehicle must have training required under section 
60.11 	123B.90, subdivision 2.
60.12 	(m) (n) Documentation of meeting the requirements listed in this subdivision must be 
60.13 	maintained under separate file at the business location for each type III vehicle operator. 
60.14 	The business manager, school board, governing body of a nonpublic school, or any other 
60.15 	entity that owns, leases, or contracts for the type III vehicle operating under this subdivision 
60.16 	is responsible for maintaining these files for inspection.
60.17 	(n) (o) The type III vehicle must bear a current certificate of inspection issued under 
60.18 	section 169.451.
60.19 	(o) (p) An employee of a school or of a school district, who is not employed for the sole 
60.20 	purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).

60.21 	Sec. 39. Minnesota Statutes 2016, section 171.06, subdivision 2a, is amended to read:
60.22 		Subd. 2a.Two-wheeled vehicle endorsement fee. (a) The fee for any duplicate driver's 
60.23 	license obtained for the purpose of adding a two-wheeled vehicle endorsement is increased 
60.24 	by $18.50 for each first such duplicate license and $13 for each renewal thereof. The 
60.25 	additional fee must be paid into the state treasury and credited as follows:
60.26 	(1) $11 of the additional fee for each first duplicate license, and $7 of the additional fee 
60.27 	for each renewal, must be credited to the motorcycle safety fund, which is hereby created; 
60.28 	provided that ten percent of fee receipts in excess of $750,000 in a fiscal year must be 
60.29 	credited to the general fund.
60.30 	(2) The remainder of the additional fee must be credited to the general fund.
61.1 	(b) All application forms prepared by the commissioner for two-wheeled vehicle 
61.2 	endorsements must clearly state the amount of the total fee that is dedicated to the motorcycle 
61.3 	safety fund.

61.4 	Sec. 40. Minnesota Statutes 2016, section 171.061, subdivision 3, is amended to read:
61.5 		Subd. 3.Application. An applicant may file an application with an agent. The agent 
61.6 	shall receive and accept applications in accordance with the laws and rules of the Department 
61.7 	of Public Safety for a driver's license, restricted license, duplicate license, instruction permit, 
61.8 	Minnesota identification card, or motorized bicycle operator's permit. Application records 
61.9 	must be maintained at the office of the agent in a manner that complies with sections 13.05, 
61.10 	subdivision 5, and 13.055. As an alternative to paper copy storage, an agent may retain 
61.11 	records and documents in a secure electronic medium that complies with the security 
61.12 	requirements under the United States Federal Bureau of Investigation, Criminal Justice 
61.13 	Information Services Division, Policy 5.4 or any successor policy, provided 60 days have 
61.14 	elapsed since the transaction and subject to standards established by the commissioner. The 
61.15 	agent is responsible for all costs associated with the conversion to electronic records and 
61.16 	maintenance of the electronic storage medium, including the destruction of existing paper 
61.17 	records after conversion to the electronic format. All queries and responses in the secure 
61.18 	electronic medium, and all actions in which data are entered, updated, accessed, or shared 
61.19 	or disseminated by the agent must be contained in a data audit trail. Data contained in the 
61.20 	audit trail are public to the extent the data are not otherwise classified under this section.

61.21 	Sec. 41. Minnesota Statutes 2016, section 171.12, subdivision 6, is amended to read:
61.22 		Subd. 6.Certain convictions not recorded. (a) Except as provided in paragraph (c), 
61.23 	the department shall not keep on the record of a driver any conviction for a violation of a 
61.24 	speed limit of 55 miles per hour unless the violation consisted of a speed greater than ten 
61.25 	miles per hour in excess of the speed limit.
61.26 	(b) Except as provided in paragraph (c), the department shall not keep on the record of 
61.27 	a driver any conviction for a violation of a speed limit of 60 miles per hour unless the 
61.28 	violation consisted of a speed greater than:
61.29 	(1) ten miles per hour in excess of the speed limit, for any violation occurring on or after 
61.30 	August 1, 2012, and before August 1, 2014; or
61.31 	(2) five miles per hour in excess of the speed limit, for any violation occurring on or 
61.32 	after August 1, 2014.
62.1 	(c) This subdivision does not apply to (1) a violation that occurs in a commercial motor 
62.2 	vehicle, or (2) a violation committed by a holder of a class A, B, or C commercial driver's 
62.3 	license or commercial driver learner's permit, without regard to whether the violation was 
62.4 	committed in a commercial motor vehicle or another vehicle.

62.5 	Sec. 42. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
62.6 	read:
62.7 		Subd. 7a.Abandoned and discontinued. "Abandoned and discontinued" means an 
62.8 	outdoor advertising device that ceases to display advertising copy for a minimum of one 
62.9 	year and is not otherwise being actively marketed to display advertising copy.

62.10 	Sec. 43. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
62.11 	read:
62.12 		Subd. 17a.Conforming. "Conforming" means an outdoor advertising device that 
62.13 	complies with the requirements of this chapter.

62.14 	Sec. 44. Minnesota Statutes 2016, section 173.02, subdivision 18, is amended to read:
62.15 		Subd. 18.Commercial or industrial activity. (a) "Commercial or industrial activity" 
62.16 	for the purposes of unzoned commercial or industrial areas means an activity generally 
62.17 	recognized as commercial or industrial by zoning authorities in this state, except that.
62.18 	(b) None of the following activities shall be considered commercial or industrial:
62.19 	(1) outdoor advertising devices.;
62.20 	(2) agricultural, forestry, ranching, grazing, farming and related activities, including, 
62.21 	but not limited to, temporary wayside fresh produce stands.;
62.22 	(3) transient or temporary activities.;
62.23 	(4) activities not visible from the main-traveled way.;
62.24 	(5) activities more than 660 feet from the nearest edge of the right-of-way.;
62.25 	(6) activities conducted in a building principally used as a residence.;
62.26 	(7) railroad tracks and minor sidings.;
62.27 	(8) advertising located on vehicles or tractor trailers;
62.28 	(9) commercial establishments or businesses that have ceased to exist or operate; or
62.29 	(10) a business created to install new outdoor advertising devices.

63.1 	Sec. 45. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
63.2 	read:
63.3 		Subd. 21a.Nonconforming. "Nonconforming" means an outdoor advertising device 
63.4 	that was lawfully erected and has been maintained lawfully but does not comply with the 
63.5 	requirements of this chapter. A nonconforming sign is one that remains in substantially the 
63.6 	same condition it was on the effective date of this chapter.

63.7 	Sec. 46. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
63.8 	read:
63.9 		Subd. 21b.Off-premise "Off-premise" means an outdoor advertising device that 
63.10 	advertises or pertains to any business, product, person, activity, event, or service that is not 
63.11 	primarily conducted, sold, manufactured, offered, or located on the property where the sign 
63.12 	is located.

63.13 	Sec. 47. Minnesota Statutes 2016, section 173.02, subdivision 23, is amended to read:
63.14 		Subd. 23.Scenic area. "Scenic area" means an area within which control and regulation 
63.15 	of the erection and maintenance of advertising devices may be exercised to the extent herein 
63.16 	provided and such areas shall include only those established as such by the commissioner 
63.17 	of transportation. Scenic area includes a scenic byway under United States Code, title 23, 
63.18 	section 162.

63.19 	Sec. 48. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
63.20 	read:
63.21 		Subd. 23a.Scenic byways. "Scenic byways" means roads that recognize outstanding 
63.22 	scenic, cultural, historic, natural, recreational, and archaeological qualities and landscapes 
63.23 	pursuant to United States Code, title 23, section 162.

63.24 	Sec. 49. Minnesota Statutes 2016, section 173.06, subdivision 1, is amended to read:
63.25 		Subdivision 1.Authority. The commissioner of transportation shall must adopt and 
63.26 	may modify, amend, or repeal rules governing the issuance of permits or renewals thereof 
63.27 	for the erection and maintenance of legal nonconforming advertising devices within scenic 
63.28 	areas; provided that the commissioner shall not adopt, modify, amend, or repeal any rule 
63.29 	that will impair any agreement with between the state and the federal government under 
63.30 	this chapter. The commissioner of transportation may limit the application of any rule 
63.31 	adopted by the commissioner to exclude or include in whole or in part, specified areas within 
64.1 	the scenic area based upon use, nature of the surrounding community, or such other factors 
64.2 	as may make separate classification or rule necessary or desirable.

64.3 	Sec. 50. Minnesota Statutes 2016, section 173.07, subdivision 1, is amended to read:
64.4 		Subdivision 1.Forms; content. Application for permits or renewals thereof for the 
64.5 	placement and maintenance of advertising devices within scenic areas shall must be on 
64.6 	forms prescribed by the commissioner and shall contain such information as the commissioner 
64.7 	may require. No advertising device shall be placed without the consent of the owner or 
64.8 	occupant of the land, and adequate proof of such consent shall be submitted to the 
64.9 	commissioner at the time application is made for such permits or renewals. A permit is 
64.10 	required to access state right-of-way to maintain an advertising device.

64.11 	Sec. 51. Minnesota Statutes 2016, section 173.08, is amended by adding a subdivision to 
64.12 	read:
64.13 		Subd. 3.Seed sign exemption. Crop varietal and seed corn signs adjacent to interstate 
64.14 	and primary highways may be erected if the device:
64.15 	(1) is located on demonstration plats;
64.16 	(2) is located on private property;
64.17 	(3) does not violate section 160.27 or 160.2715; and
64.18 	(4) does not reference an off-site address where the product may be sold.

64.19 	Sec. 52. Minnesota Statutes 2016, section 173.08, is amended by adding a subdivision to 
64.20 	read:
64.21 		Subd. 4.Violations; removal. The Department of Transportation may remove signs 
64.22 	that violate this section using the removal procedures under section 173.13, subdivision 11.

64.23 	Sec. 53. Minnesota Statutes 2016, section 173.13, subdivision 11, is amended to read:
64.24 		Subd. 11.Removal of advertising device for noncompliance. Advertising devices 
64.25 	erected or maintained after June 8, 1971, not complying with Laws 1971, chapter 883, and 
64.26 	not otherwise by Laws 1971, chapter 883, permitted to standthis chapter may be removed 
64.27 	by the commissioner upon 60 days prior written notice by certified mail to the owner thereof
64.28 	of the advertising device and to the owner of the real property on which suchthe advertising 
64.29 	device is located, provided that. No notice shall be is required to be given to the owner of 
64.30 	an advertising device whose name is not stated upon the advertising device or the structure 
65.1 	on which it is displayed, unless the name of such the owner is otherwise reasonably known 
65.2 	to the commissioner. The owner of the removed device is liable to the state for the costs of 
65.3 	removal. The period of such notice shall be is computed from the date of mailing. to both 
65.4 	the owner of the advertising device and the owner of the real property where the device is 
65.5 	located. The department must store a removed outdoor advertising device for a minimum 
65.6 	of 30 days prior to disposal. If the outdoor advertising device is not retrieved by the owner 
65.7 	within 30 days of removal, the department may dispose of the outdoor advertising device. 
65.8 	The state is not liable for trespass actions or sign costs for outdoor advertising devices 
65.9 	removed under this subdivision if proper notice has been served.

65.10 	Sec. 54. [173.155] CHANGEABLE ELECTRONIC VARIABLE MESSAGE SIGNS.
65.11 		Subdivision 1.Definition. For the purposes of this section, "changeable electronic 
65.12 	variable message sign" or "CEVMS" means an outdoor advertising device that contains 
65.13 	light-emitting diodes or other technology to display copy visible during the day and during 
65.14 	the night, with the copy changes initiated electronically.
65.15 		Subd. 2.Prohibition. Intermittent, animated, scrolling, full-motion video elements, or 
65.16 	moving lights are prohibited on outdoor advertising devices, including CEVMS.
65.17 		Subd. 3.Exceptions. (a) Notwithstanding subdivision 2, a CEVMS is permissible if:
65.18 	(1) the message does not change more frequently than once every six seconds;
65.19 	(2) the transition between messages or copy does not exceed two seconds in duration;
65.20 	(3) the message brightness does not exceed 0.3 foot-candles over ambient light, as 
65.21 	measured using a foot candle meter from the following distances:
65.22 	(i) for signs with a nominal face size of 12 feet by 25 feet, from 150 feet;
65.23 	(ii) for signs with a nominal face size of ten feet, six inches, by 36 feet, from 200 feet; 
65.24 	and
65.25 	(iii) for signs with a nominal face size of 14 feet by 48 feet, from 250 feet; and
65.26 	(4) the sign must not cause beams or rays of light to be directed at the traveled way if 
65.27 	the light is of such intensity or brilliance as to cause glare that impairs the vision of the 
65.28 	driver of a motor vehicle, or interfere with any driver's operation of a motor vehicle.
65.29 	(b) The brightness measurement under paragraph (a), clause (3), must be conducted at 
65.30 	least 30 minutes after sunset or at least 30 minutes before sunrise. Each CEVMS must have 
65.31 	automatic dimming technology that adjusts the device's brightness levels in response to 
65.32 	changes in ambient light.

66.1 	Sec. 55. Minnesota Statutes 2016, section 173.16, is amended by adding a subdivision to 
66.2 	read:
66.3 		Subd. 6.Stationary structure. Advertising devices must:
66.4 	(1) be stationary;
66.5 	(2) be immobile;
66.6 	(3) not have wheels; and
66.7 	(4) be incapable of relocation without a permit.

66.8 	Sec. 56. Minnesota Statutes 2016, section 173.16, is amended by adding a subdivision to 
66.9 	read:
66.10 		Subd. 7.Permanent business. (a) A business that is located in an unzoned commercial 
66.11 	and industrial area must be in existence for at least three months before a permit may be 
66.12 	issued. An outdoor advertising device erected prior to receiving a permit is subject to 
66.13 	removal.
66.14 	(b) A commercial establishment may demonstrate evidence of its existence by having 
66.15 	a Web site, a telephone number that is answered or has an answering machine identifying 
66.16 	the business, a storefront, pictorial evidence of the business, a building permit, or a lease.

66.17 	Sec. 57. [173.265] OUTDOOR ADVERTISING DEVICES; REMOVAL; 
66.18 	MAINTENANCE.
66.19 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
66.20 	the meanings given them.
66.21 	(b) "Destroyed" means that more than 50 percent of a nonconforming outdoor advertising 
66.22 	device's upright supports are physically damaged to a degree that normal repair practices 
66.23 	would require replacement of broken wooden supports or replacement of broken, bent, or 
66.24 	twisted supports for metal sign structures.
66.25 	(c) "Reasonable repair and maintenance" means customary maintenance and change of 
66.26 	a sign's copy or message, and includes replacement of existing light fixtures with energy 
66.27 	efficient fixtures or installation of other energy efficiency improvements. Reasonable repair 
66.28 	and maintenance does not include:
66.29 	(1) the addition of illumination;
67.1 	(2) repair, reinstallation, erection, or maintenance for outdoor advertising devices that 
67.2 	are destroyed, as defined under paragraph (b);
67.3 	(3) enlarging the nonconforming device;
67.4 	(4) changing the device from a wood structure to a steel or concrete structure; or
67.5 	(5) any change that would terminate nonconforming status.
67.6 	(d) "Substantial change" means any action that does not constitute reasonable repair and 
67.7 	maintenance.
67.8 		Subd. 2.Application. This section applies only to outdoor advertising devices subject 
67.9 	to state and federal regulation under United States Code, title 23, section 131, and any 
67.10 	regulations adopted under that law.
67.11 		Subd. 3.Removal. The department may remove a destroyed, abandoned, or discontinued 
67.12 	outdoor advertising device, subject to the limitations provided under this chapter.
67.13 		Subd. 4.Reasonable repair and maintenance. (a) The owner of an outdoor advertising 
67.14 	device may perform reasonable repair and maintenance on any device, provided the device 
67.15 	is not destroyed.
67.16 	(b) Any action not constituting reasonable repair and maintenance will subject the outdoor 
67.17 	advertising device to immediate removal under subdivision 3.
67.18 		Subd. 5.Substantial change. Substantial changes to outdoor advertising devices are 
67.19 	prohibited. A substantial change to a nonconforming outdoor advertising device will subject 
67.20 	the sign to immediate removal under subdivision 3.

67.21 	Sec. 58. Minnesota Statutes 2016, section 174.03, subdivision 1a, is amended to read:
67.22 		Subd. 1a.Revision of statewide multimodal transportation plan. (a) The commissioner 
67.23 	shall must revise the statewide multimodal transportation plan by January 15, 2013 2022, 
67.24 	and by January 15 of every four five years thereafter. Before final adoption of a revised 
67.25 	plan, the commissioner shall must hold a hearing to receive public comment on the 
67.26 	preliminary draft of the revised plan.
67.27 	(b) Each revised statewide multimodal transportation plan must:
67.28 	(1) incorporate the goals of the state transportation system in section 174.01;
67.29 	(2) establish objectives, policies, and strategies for achieving those goals; and
67.30 	(3) identify performance targets for measuring progress and achievement of transportation 
67.31 	system goals, objectives, or policies.

68.1 	Sec. 59. Minnesota Statutes 2016, section 174.03, subdivision 1c, is amended to read:
68.2 		Subd. 1c.Statewide highway 20-year capital investment plan. By January 15, 2013, 
68.3 	and in conjunction with Within one year of each future revision of the statewide multimodal 
68.4 	transportation plan under subdivision 1a, the commissioner shall must prepare a 20-year 
68.5 	statewide highway capital investment plan that:
68.6 	(1) incorporates performance measures and targets for assessing progress and achievement 
68.7 	of the state's transportation goals, objectives, and policies identified in this chapter for the 
68.8 	state trunk highway system, and those goals, objectives, and policies established in the 
68.9 	statewide multimodal transportation plan. Performance targets must be based on objectively 
68.10 	verifiable measures, and address, at a minimum, preservation and maintenance of the 
68.11 	structural condition of state highway bridges and pavements, safety, and mobility;
68.12 	(2) summarizes trends and impacts for each performance target over the past five years;
68.13 	(3) summarizes the amount and analyzes the impact of the department's capital 
68.14 	investments and priorities over the past five years on each performance target, including a 
68.15 	comparison of prior plan projected costs with actual costs;
68.16 	(4) identifies the investments required to meet the established performance targets over 
68.17 	the next 20-year period;
68.18 	(5) projects available state and federal funding over the 20-year period, including any 
68.19 	unique, competitive, time-limited, or focused funding opportunities;
68.20 	(6) identifies strategies to ensure the most efficient use of existing transportation 
68.21 	infrastructure, and to maximize the performance benefits of projected available funding;
68.22 	(7) establishes investment priorities for projected funding, including a schedule of major 
68.23 	projects or improvement programs for the 20-year period together with projected costs and 
68.24 	impact on performance targets; and
68.25 	(8) identifies those performance targets identified under clause (1) not expected to meet 
68.26 	the target outcome over the 20-year period together with alternative strategies that could 
68.27 	be implemented to meet the targets.

68.28 	Sec. 60. Minnesota Statutes 2016, section 174.03, is amended by adding a subdivision to 
68.29 	read:
68.30 		Subd. 1e.Capacity and major highway projects; planning and programming. (a) 
68.31 	The commissioner must implement a process concerning trunk highway projects that are 
68.32 	not included in the state transportation improvement program. The commissioner must use 
69.1 	the process for projects that expand trunk highway system capacity and for major highway 
69.2 	projects, as defined in section 174.56, subdivision 1.
69.3 	(b) At a minimum, the process must:
69.4 	(1) establish standard, objective procedures for planning, project identification, 
69.5 	development, prioritization, and programming;
69.6 	(2) address fiscal considerations, including total expenditures to develop projects that 
69.7 	are not programmed;
69.8 	(3) communicate to stakeholders and the general public an outline of the process and a 
69.9 	list of specific capacity projects, using plain language descriptions and information; and
69.10 	(4) integrate with the department's programs that involve alternative project selection 
69.11 	methods, including but not limited to the corridors of commerce program under section 
69.12 	161.088 and the transportation economic development program under section 174.12.

69.13 	Sec. 61. Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:
69.14 		Subd. 5.Certification and disbursal for project of political subdivision. Before 
69.15 	disbursement of an appropriation made from the fund to the commissioner of transportation 
69.16 	for grants to subdivisions of the state, the commissioner shall must certify that:
69.17 	(1) that the project for which the grant is made has been reviewed as provided in 
69.18 	subdivision 4;
69.19 	(2) that the project conforms to the program authorized by the appropriation law and 
69.20 	rules adopted by the Department of Transportation consistent therewith; and
69.21 	(3) that (2) the financing of any estimated cost of the project in excess of the amount of 
69.22 	the grant is assured by the appropriation of the proceeds of bonds or other funds of the 
69.23 	subdivision, or by a grant from an agency of the federal government, within the amount of 
69.24 	funds then appropriated to that agency and allocated by it to projects within the state, and 
69.25 	by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to 
69.26 	use all funds so made available exclusively for the project, and to pay any additional amount 
69.27 	by which the cost exceeds the estimate through appropriation to the construction fund of 
69.28 	additional funds or the proceeds of additional bonds to be issued by the subdivision.

70.1 	Sec. 62. Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:
70.2 		Subd. 6b.Bridge costs in smaller cities. (a) The commissioner may make grants from 
70.3 	the state transportation fund to a home rule or statutory city with a population of 5,000 or 
70.4 	less for design, engineering, and construction of bridges on city streets.
70.5 	(b) Grants under this subdivision are subject to the procedures and criteria established 
70.6 	under subdivisions 5, 6, and 7.
70.7 	(c) (b) Grants may be used for:
70.8 	(1) 100 percent of the design and engineering costs that are in excess of $10,000;
70.9 	(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
70.10 	(3) 100 percent of the bridge construction work costs.

70.11 	Sec. 63. Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:
70.12 		Subd. 6c.Fracture-critical bridges. (a) The commissioner may make a grant to any 
70.13 	political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be 
70.14 	eligible for a grant under this subdivision, the project must produce a bridge structure:
70.15 	(1) that is no longer classified as fracture critical, by having alternate load paths; and
70.16 	(2) whose failure of a main component will not result in the collapse of the bridge.
70.17 	(b) A grant under this subdivision is subject to the procedures and criteria established 
70.18 	under subdivisions 5 and 6.

70.19 	Sec. 64. Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:
70.20 		Subd. 7.Bridge grant program; rulemaking. (a) The commissioner of transportation 
70.21 	shall develop rules, procedures for application for grants, conditions of grant administration, 
70.22 	standards, and criteria as provided under subdivision 6, including bridge specifications, in 
70.23 	cooperation with road authorities of political subdivisions, for use in the administration of 
70.24 	funds appropriated to the commissioner and for the administration of grants to subdivisions. 
70.25 	Grants under this section are subject to the procedures and criteria established in this 
70.26 	subdivision and in subdivisions 5 and 6.
70.27 	(b) The maximum use of standardized bridges is encouraged. Regardless of the size of 
70.28 	the existing bridge, a bridge or replacement bridge is eligible for assistance from the state 
70.29 	transportation fund if a hydrological survey indicates that the bridge or replacement bridge 
70.30 	must be ten feet or more in length.
71.1 	(c) As part of the standards or rules, the commissioner shall, in consultation with local 
71.2 	road authorities, establish a minimum distance between any two bridges that cross over the 
71.3 	same river, stream, or waterway, so that only one of the bridges is eligible for a grant under 
71.4 	this section. As appropriate, the commissioner may establish exceptions from the minimum 
71.5 	distance requirement or procedures for obtaining a variance.
71.6 	(d) Political subdivisions may use grants made under this section to construct or 
71.7 	reconstruct bridges, including but not limited to:
71.8 	(1) matching federal aid grants to construct or reconstruct key bridges;
71.9 	(2) paying the costs to abandon an existing bridge that is deficient and in need of 
71.10 	replacement but where no replacement will be made; and
71.11 	(3) paying the costs to construct a road or street to facilitate the abandonment of an 
71.12 	existing bridge if the commissioner determines that the bridge is deficient, and that 
71.13 	construction of the road or street is more economical than replacement of the existing bridge.
71.14 	(e) Funds appropriated to the commissioner from the Minnesota state transportation 
71.15 	fund shall be segregated from the highway tax user distribution fund and other funds created 
71.16 	by article XIV of the Minnesota Constitution.
71.17 	(f) The maximum grant amount for a local bridge replacement or rehabilitation project 
71.18 	under this section is $7,000,000. If in any year money appropriated for local bridge 
71.19 	replacement or rehabilitation projects remains available after all projects on the 
71.20 	commissioner's priority list for which the state share is $7,000,000 or less have been funded, 
71.21 	the commissioner may make grants for more than $7,000,000.

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

71.23 	Sec. 65. [174.54] TRANSPORTATION PRIORITIES FUND.
71.24 		Subdivision 1.Fund established. A transportation priorities fund is established in the 
71.25 	state treasury, under the budgetary jurisdiction of the legislative committees having 
71.26 	jurisdiction over transportation finance. The fund consists of money provided by law, and 
71.27 	any other funds donated, allotted, transferred, or otherwise provided. Money in the fund 
71.28 	must be allocated solely for transportation purposes as specified in this section and as 
71.29 	provided by law.
71.30 		Subd. 2.Financial reports. Any report or financial statement required by law to be 
71.31 	submitted to the legislature that provides financial information on the transportation priorities 
72.1 	fund must include accounting information on each account established within the fund, 
72.2 	including revenues and sources, transfers, uses, and account balance.
72.3 		Subd. 3.Fund allocation; net funds. (a) In fiscal year 2020 and thereafter, the 
72.4 	commissioner of transportation must allocate funds in the transportation priorities fund as 
72.5 	follows:
72.6 	(1) 70.5 percent transferred to the commissioner of transportation for deposit in the 
72.7 	highway user tax distribution fund, provided that this amount is reduced by the amount 
72.8 	transferred as specified in subdivision 4;
72.9 	(2) four percent to the small cities assistance account;
72.10 	(3) three percent for the local bridge replacement and rehabilitation program under 
72.11 	section 174.50;
72.12 	(4) 1.5 percent for the hazardous materials rail safety program under section 219.016;
72.13 	(5) 0.75 percent for purposes of replacement of highway-rail grade crossing warning 
72.14 	devices;
72.15 	(6) 0.25 percent for the public highway-rail grade crossing quiet zone program under 
72.16 	section 219.166;
72.17 	(7) ten percent for distribution as provided in subdivision 5; and
72.18 	(8) ten percent transferred to the commissioner of transportation for deposit in the greater 
72.19 	Minnesota transit account in the transit assistance fund.
72.20 	(b) Funds allocated under paragraph (a) exclude any amounts that are in an account in 
72.21 	the transportation priorities fund, and any amounts otherwise appropriated or transferred 
72.22 	from the fund by law. Funds allocated under paragraph (a) include any amounts canceled 
72.23 	to the fund under section 16A.28 or as otherwise provided by law.
72.24 		Subd. 4.Fund allocation; debt service. An amount equal to the necessary debt service 
72.25 	on trunk highway bond proceeds appropriated in article 2, section 2, subdivision 2, of this 
72.26 	act is annually transferred from the transportation priorities fund to the commissioner of 
72.27 	transportation for deposit in the trunk highway fund.
72.28 		Subd. 5.Fund allocation; certain metropolitan area county roads. (a) The 
72.29 	commissioner of transportation must distribute the funds under subdivision 3, paragraph 
72.30 	(a), clause (7), and any other funds appropriated specifically for purposes of this subdivision 
72.31 	to the counties in the metropolitan area, as defined in section 473.121, subdivision 4, 
72.32 	excluding the counties of Hennepin and Ramsey, so that each county receives from that 
73.1 	amount the percentage that its population, as defined in section 477A.011, subdivision 3, 
73.2 	estimated or established by July 15 of the year prior to the current calendar year, bears to 
73.3 	the total population of the counties receiving funds under this paragraph.
73.4 	(b) Funds distributed under this subdivision are for construction, reconstruction, and 
73.5 	maintenance of county highways, including county state-aid highways.

73.6 	Sec. 66. Minnesota Statutes 2016, section 174.56, subdivision 1, is amended to read:
73.7 		Subdivision 1.Report required. (a) The commissioner of transportation shall must
73.8 	submit a report by December 15 of each year on that includes:
73.9 	(1) the status of major highway projects:
73.10 	(i) completed during the previous two years; or
73.11 	(ii) under construction or planned during the year of the report and for the ensuing 15 
73.12 	years, (2) trunk highway fund expenditures, and;
73.13 	(2) a list of any major highway projects identified in capital investment plans or identified 
73.14 	as reasonably likely for inclusion in the state transportation improvement program within 
73.15 	the next ten years;
73.16 	(3) beginning with the report due in 2016, a list of any major highway projects removed 
73.17 	from, delayed within, or delayed from inclusion in the state transportation improvement 
73.18 	program or capital investment plans, including a discussion of the rationale for the delay 
73.19 	or removal;
73.20 	(4) an explanation of the highway project selection process, including key milestones 
73.21 	and decision-making steps;
73.22 	(5) the annual budget for products and services for each Department of Transportation 
73.23 	district and office, with a comparison to actual spending and including measures of 
73.24 	productivity for the previous fiscal year; and
73.25 	(6) information detailing efficiencies achieved during the previous two fiscal years, 
73.26 	which must describe each of the specific changes made and the methodology used to calculate 
73.27 	efficiencies.
73.28 	(b) For purposes of this section, a "major highway project" is a highway project that has 
73.29 	a total cost for all segments that the commissioner estimates at the time of the report to be 
73.30 	at least (1) $15,000,000 in the metropolitan highway construction district, or (2) $5,000,000 
73.31 	in any nonmetropolitan highway construction district. A major highway project does not 
73.32 	include district set-asides.

74.1 	Sec. 67. Minnesota Statutes 2016, section 174.56, subdivision 2, is amended to read:
74.2 		Subd. 2.Report contents; major highway projects. (a) For each major highway project
74.3 	under subdivision 1, paragraph (a), clause (1), the report must include:
74.4 	(1) a description of the project sufficient to specify its scope and location;
74.5 	(2) a history of the project, including, but not limited to, and as applicable: previous 
74.6 	official actions by the department or the appropriate area transportation partnership, or both, 
74.7 	the date on which the project was first included in the state transportation improvement plan
74.8 	program, the cost of the project at that time, the planning estimate for the project, the 
74.9 	engineer's estimate, the award price, the final cost as of six months after substantial 
74.10 	completion, including a total amount for any supplemental agreements and cost overruns 
74.11 	or cost savings, the dates of environmental approval, the dates of municipal approval, the 
74.12 	date of final geometric layout, and the date of establishment of any construction limits;
74.13 	(3) the project's priority listing or rank within its construction district, if any, as well as 
74.14 	the reasons for that listing or rank, the criteria used in prioritization or rank, any changes 
74.15 	in that prioritization or rank since the project was first included in a department work plan, 
74.16 	and the reasons for those changes; and
74.17 	(4) past and potential future reasons for delay in letting or completing the project, details 
74.18 	of all project cost changes that exceed $500,000, and specific modifications to the overall 
74.19 	program that are made as a result of delays and project cost changes;.
74.20 	(5) two representative trunk highway construction projects, one each from the 
74.21 	department's metropolitan district and from greater Minnesota, and for each project report 
74.22 	the cost of environmental mitigation and compliance; and
74.23 	(6) the annual budget for products and services for each Department of Transportation 
74.24 	district and office, with comparison to actual spending and including measures of productivity 
74.25 	for the previous fiscal year.
74.26 	(b) For each major highway project under subdivision 1, paragraph (a), clauses (2) and 
74.27 	(3), the report must include, as available, a project description and a summary of project 
74.28 	status, scoping activity, and cost estimates.

75.1 	Sec. 68. Minnesota Statutes 2016, section 174.56, is amended by adding a subdivision to 
75.2 	read:
75.3 		Subd. 4.Availability of information. The commissioner must maintain on an Internet 
75.4 	Web site information for each major highway project, which must at a minimum include 
75.5 	the report contents identified in subdivision 2.

75.6 	Sec. 69. [174.57] SNOW AND ICE CONTROL; APPROPRIATION.
75.7 	(a) In a fiscal year in which the commissioner expends more than 110 percent of the 
75.8 	established biennial expenditure level for snow and ice management, the commissioner may 
75.9 	use an additional amount for this purpose that does not exceed 50 percent of the 
75.10 	unappropriated balance in the trunk highway fund. The amount identified by the 
75.11 	commissioner under this paragraph is appropriated from the trunk highway fund to the 
75.12 	commissioner for snow and ice management purposes.
75.13 	(b) Upon using the appropriation authority in this section, the commissioner must notify 
75.14 	the commissioner of management and budget and the chairs, ranking minority members, 
75.15 	and staff of the house of representatives and senate committees having jurisdiction over 
75.16 	transportation finance. The notification must at a minimum identify the established biennial 
75.17 	expenditure level for snow and ice management and the amount appropriated under this 
75.18 	section.
75.19 	(c) In each budget submission to the legislature under section 16A.11, the commissioner 
75.20 	must include:
75.21 	(1) the proposed biennial expenditure level for snow and ice management for the next 
75.22 	budget biennium; and
75.23 	(2) the total amount expended or estimated to be expended under the appropriation in 
75.24 	this section for the budget biennium that is ending.

75.25 	Sec. 70. Minnesota Statutes 2016, section 174.93, is amended to read:
75.26 	174.93 GUIDEWAY METROPOLITAN AREA TRANSIT INVESTMENT.
75.27 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
75.28 	the meanings given:
75.29 	(1) "busway" means a form of transportation service, consisting of arterial or highway 
75.30 	bus rapid transit, limited stop bus service, and express bus service, provided to the public 
76.1 	on a regular and ongoing basis that does not primarily or substantially operate within 
76.2 	separated rights-of-way;
76.3 	(2) "commissioner" means the commissioner of transportation;
76.4 	(2) (3) "guideway" means a form of transportation service provided to the public on a 
76.5 	regular and ongoing basis, that primarily or substantially operates on exclusive or controlled
76.6 	within separated rights-of-way or operates on rails in whole or in part, and includes:
76.7 	(i) each line for intercity passenger rail, commuter rail, light rail transit, and streetcars, 
76.8 	and;
76.9 	(ii) as applicable, each line for dedicated bus service, which may include arterial or 
76.10 	highway bus rapid transit, limited stop bus service, and express bus service; and
76.11 	(iii) any intermodal facility serving two or more lines identified in items (i) and (ii); and
76.12 	(3) (4) "local unit of government" means a county, statutory or home rule charter city, 
76.13 	town, or other political subdivision including, but not limited to, a regional railroad authority 
76.14 	or joint powers board.
76.15 	(b) For purposes of this section, "sources of funds" includes, but is not limited to, money 
76.16 	from federal aid, state appropriations, the Metropolitan Council, special taxing districts, 
76.17 	local units of government, fare box recovery, and nonpublic sources.
76.18 	(c) For purposes of this section, "budget activity" includes, but is not limited to, 
76.19 	environmental analysis, land acquisition, easements, design, preliminary and final 
76.20 	engineering, acquisition of vehicles and rolling stock, track improvement and rehabilitation, 
76.21 	and construction.
76.22 	(d) Guideway does not include a busway.
76.23 	(e) "Separated rights-of-way" includes exclusive, dedicated, or primary use of a 
76.24 	right-of-way by the public transportation service. Separated rights-of-way does not include 
76.25 	a shoulder, dynamic shoulder lane, or priced lane under section 160.93.
76.26 		Subd. 1a.Guideway capital project requests to legislature. A state agency or local 
76.27 	unit of government that submits a request to the legislature to obtain state funds for a 
76.28 	guideway project shall, as part of the request, provide a summary financial plan for the 
76.29 	project that presents the following information as reflected by the data and level of detail 
76.30 	available in the latest phase of project development:
77.1 	(1) capital expenditures and funding sources for the project, including expenditures to 
77.2 	date and total projected or estimated expenditures, with a breakdown by committed and 
77.3 	proposed sources of funds; and
77.4 	(2) estimated annual operations and maintenance expenditures for the project, with a 
77.5 	breakdown by committed and proposed sources of funds.
77.6 		Subd. 2.Legislative report. (a) Annually by January 15, 2012, and by November 15 in 
77.7 	every odd-numbered year thereafter, the commissioner shall council must prepare, in 
77.8 	collaboration with the Metropolitan Council commissioner, and a report on comprehensive 
77.9 	transit finance in the metropolitan area. The council must submit a the report electronically 
77.10 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
77.11 	over transportation policy and finance concerning.
77.12 	(b) The report must be structured to provide financial information in six-month increments 
77.13 	corresponding to state and local fiscal years, and must use consistent assumptions and 
77.14 	methodologies. The report must comprehensively identify all funding sources and 
77.15 	expenditures related to transit in the metropolitan area, including but not limited to:
77.16 	(1) sources and uses of funds from regional railroad authorities, joint powers agreements, 
77.17 	counties, and cities;
77.18 	(2) expenditures for transit planning, feasibility studies, alternatives analysis, and other 
77.19 	transit project development; and
77.20 	(3) expenditures for guideways, busways, regular route bus service, demand-response 
77.21 	service, and special transportation service under section 473.386.
77.22 	(c) The report must include a section that identifies the status of guideways in revenue 
77.23 	operation and guideway projects (1) currently in study, planning, development, or 
77.24 	construction; (2) identified in the transportation policy plan under section 473.146; or (3) 
77.25 	identified in the comprehensive statewide freight and passenger rail plan under section 
77.26 	174.03, subdivision 1b.
77.27 	(b) (d) At a minimum, the guideways status section of the report must include, provide
77.28 	for each guideway project wholly or partially in the metropolitan area:
77.29 	(1) a brief description of the project, including projected ridership;
77.30 	(2) a summary of the overall status and current phase of the project;
78.1 	(3) a timeline that includes (i) project phases or milestones, including any federal 
78.2 	approvals; (ii) expected and known dates of commencement of each phase or milestone; 
78.3 	and (iii) expected and known dates of completion of each phase or milestone;
78.4 	(4) a brief progress update on specific project phases or milestones completed since the 
78.5 	last previous submission of a report under this subdivision; and
78.6 	(5) a summary financial plan that identifies, as reflected by the data and level of detail 
78.7 	available in the latest phase of project development and to the extent available:
78.8 	(i) capital expenditures, including expenditures to date and total projected expenditures, 
78.9 	with a breakdown by committed and proposed sources of funds for the project;
78.10 	(ii) estimated annual operations and maintenance expenditures reflecting the level of 
78.11 	detail available in the current phase of the project development, with a breakdown by 
78.12 	committed and proposed sources of funds for the project; and
78.13 	(iii) if feasible, project expenditures by budget activity.
78.14 	(e) The report must include a section that summarizes the status of busways in revenue 
78.15 	operation and busway projects currently in study, planning, development, or construction.
78.16 	(f) The report must include a section that identifies the total ridership, farebox recovery 
78.17 	ratio, and per-passenger operating subsidy for (1) each route and line in revenue operation 
78.18 	by a transit provider, including guideways, busways, and regular route bus service; and (2) 
78.19 	demand-response service and special transportation service. The section must provide data 
78.20 	on a per-passenger mile basis and must provide information for at least the previous three 
78.21 	years. The section must identify performance standards for farebox recovery and identify 
78.22 	each route and line that does not meet the standards.
78.23 	(c) (g) The report must also include a systemwide capacity analysis for transit operations 
78.24 	and investment in guideway expansion and maintenance that:
78.25 	(1) provides a funding projection, annually over the ensuing ten years, and with a 
78.26 	breakdown by committed and proposed sources of funds, of:
78.27 	(i) total capital expenditures for guideways and for busways;
78.28 	(ii) total operations and maintenance expenditures for guideways and for busways;
78.29 	(iii) total funding available for guideways and for busways, including from projected or 
78.30 	estimated farebox recovery; and
78.31 	(iv) total funding available for transit service in the metropolitan area; and
79.1 	(2) evaluates the availability of funds and distribution of sources of funds for guideway
79.2 	and for busway investments.
79.3 	(d) (h) The projection capacity analysis under paragraph (c), clause (1), (g) must be for
79.4 	include all guideway and busway lines for which state public funds are reasonably expected 
79.5 	to be expended in planning, development, construction, or revenue operation, or capital 
79.6 	maintenance during the ensuing ten years.
79.7 	(e) (i) Local units of government shall must provide assistance and information in a 
79.8 	timely manner as requested by the commissioner or council for completion of the report.

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

79.12 	Sec. 71. [219.016] OIL AND OTHER HAZARDOUS MATERIALS RAIL SAFETY.
79.13 		Subdivision 1.Program established. A hazardous materials rail safety program is 
79.14 	established for the purpose of reducing the risks associated with the transportation of oil, 
79.15 	ethanol, and other hazardous material by rail.
79.16 		Subd. 2.Hazardous materials rail safety account. A hazardous materials rail safety 
79.17 	account is established in the transportation priorities fund. The account consists of funds as 
79.18 	provided by law, and any other funds donated, allotted, transferred, or otherwise provided.
79.19 		Subd. 3.Use of funds. Funds appropriated for the program under this section may only 
79.20 	be used for capital costs associated with planning, engineering, administration, and 
79.21 	construction of public highway-rail grade crossing improvements on rail corridors 
79.22 	transporting crude oil and other hazardous materials. Improvements may include upgrades 
79.23 	to existing protection systems, the closing of crossings and necessary roadwork, and 
79.24 	reconstruction of at-grade crossings to full grade separations.
79.25 		Subd. 4.Eligible applicants. Counties, statutory or home rule charter cities, or towns 
79.26 	that are responsible for establishing and maintaining public highway-rail grade crossings 
79.27 	on rail corridors transporting crude oil and other hazardous materials may apply to the 
79.28 	commissioner for financial assistance under this section.
79.29 		Subd. 5.Grants; authorization. The commissioner may approve grants for financial 
79.30 	assistance to eligible applicants for capital costs associated with hazardous materials rail 
79.31 	safety projects on public highway-rail grade crossings. Qualifying capital costs include, but 
79.32 	are not limited to, upgrades to existing protection systems, the closing of crossings and 
79.33 	necessary roadwork, and reconstruction of at-grade crossings to full grade separations.
80.1 		Subd. 6.Grants; criteria for grant award. The commissioner must consider the 
80.2 	following criteria to evaluate applications for a grant award for a hazardous materials rail 
80.3 	safety project:
80.4 	(1) whether the crossing was identified as a potential candidate for grade separation in 
80.5 	the Department of Transportation's crude by rail grade crossing study (Improvements to 
80.6 	Highway Grade Crossings and Rail Safety, December 2014);
80.7 	(2) roadway traffic volumes and speeds;
80.8 	(3) train volumes and speeds;
80.9 	(4) adjacent land use;
80.10 	(5) crash history;
80.11 	(6) use of the crossing by emergency vehicles;
80.12 	(7) use of the crossing by vehicles carrying hazardous materials; and
80.13 	(8) local financial contributions to the project.

80.14 	Sec. 72. Minnesota Statutes 2016, section 219.166, is amended to read:
80.15 	219.166 ESTABLISHMENT OF QUIET ZONES.
80.16 		Subdivision 1.Eligible quiet zone applicants. A county, statutory or home rule charter 
80.17 	city, or town may apply to the Federal Railroad Administration for the establishment of a 
80.18 	"quiet zone" at a public highway-rail grade crossing in which the sounding of horns, whistles, 
80.19 	or other audible warnings by locomotives is regulated or prohibited. All quiet zones, 
80.20 	regulations, and ordinances adopted under this section must conform to federal law and the 
80.21 	regulations of the Federal Railroad Administration under United States Code of Federal 
80.22 	Regulations, title 49, section 20153 parts 222 and 229.
80.23 		Subd. 2.Program established. A public highway-rail grade crossing quiet zone program 
80.24 	is established for the purpose of improving and rehabilitating railroad rights-of-way and 
80.25 	other public and private rail facilities, including necessary safety-related capital improvements 
80.26 	at public highway-rail grade crossings where quiet zones are established.
80.27 		Subd. 3.Highway-rail grade crossing quiet zone account. A highway-rail grade 
80.28 	crossing quiet zone account is established in the transportation priorities fund. The account 
80.29 	consists of funds as provided by law, and any other funds donated, allotted, transferred, or 
80.30 	otherwise provided.
81.1 		Subd. 4.Use of funds. Funds appropriated for the program under this section may only 
81.2 	be used for capital costs associated with the establishment of a quiet zone at a public 
81.3 	highway-rail grade crossing.
81.4 		Subd. 5.Eligible applicants. Counties, statutory or home rule charter cities, or towns 
81.5 	that are responsible for traffic control or law enforcement at a public highway-rail grade 
81.6 	crossing and that qualify as eligible applicants to the Federal Railroad Administration (FRA) 
81.7 	for the establishment of a quiet zone may apply to the commissioner for financial assistance 
81.8 	under this section.
81.9 		Subd. 6.Grants; authorization. The commissioner may approve grants for financial 
81.10 	assistance to eligible applicants for capital costs associated with the establishment of a quiet 
81.11 	zone at a public highway-rail grade crossing. Qualifying capital costs include, but are not 
81.12 	limited to, the installation of grade crossing active warning devices and other traffic control 
81.13 	devices and associated roadwork necessary to meet the FRA criteria for approval of the 
81.14 	quiet zone.
81.15 		Subd. 7.Grants; criteria for grant award. The commissioner must consider the 
81.16 	following criteria to evaluate applications for a grant award for a quiet zone project:
81.17 	(1) the number of residents that will benefit from the establishment of the quiet zone 
81.18 	through a reduction in train horn noise;
81.19 	(2) the number of existing grade crossings that will be closed, thereby improving public 
81.20 	safety;
81.21 	(3) evidence that the project meets FRA qualifications and requirements for a quiet zone, 
81.22 	without the need for additional annual review by FRA per federal quiet zone regulations;
81.23 	(4) nonstate financial participation as a percentage of total project cost; and
81.24 	(5) the amount of state financial participation per resident benefiting from the project.

81.25 	Sec. 73. Minnesota Statutes 2016, section 219.20, subdivision 1, is amended to read:
81.26 		Subdivision 1.When installation required; procedure. At each grade crossing not 
81.27 	equipped with flashing lights or flashing lights and gates where, because of the dangers 
81.28 	attendant upon its use, the reasonable protection of life and property makes it necessary for 
81.29 	persons approaching the crossing to stop or yield before crossing the railroad tracks, stop 
81.30 	signs or yield signsthe railway company must be installed install yield signs in addition to 
81.31 	crossbuck signs. When the government entity responsible for a road that crosses a railroad 
81.32 	track deems it necessary to install stop signs orrather than yield signs at that crossing, it 
82.1 	shall petition the commissioner to order the installation of the stop signs or yield signs. The 
82.2 	commissioner shall respond to the petition by investigating the conditions at the crossing 
82.3 	to determine whether stop signs or yield signs should be installed at the crossing instead of 
82.4 	yield signs. On determining, after an investigation following a petition from a governmental 
82.5 	agency or subdivision or on the commissioner's own motion, that stop signs or yield signs
82.6 	should be installed at a crossing, the commissioner shall designate the crossing as a stop 
82.7 	crossing or yield crossing and shall notify the railway company operating the railroad at 
82.8 	the crossing of this designation. Within 30 days after notification, the railway company 
82.9 	shall erect the uniform stop crossing signs or yield crossing signs in accordance with the 
82.10 	commissioner's order.

82.11 	EFFECTIVE DATE. This section is effective the day following final enactment. 
82.12 	Railway companies must install yield signs required under this section before December 
82.13 	31, 2019.

82.14 	Sec. 74. Minnesota Statutes 2016, section 221.031, is amended by adding a subdivision 
82.15 	to read:
82.16 		Subd. 2e.Exemptions for pipeline welding trucks. A pipeline welding truck, as defined 
82.17 	in Code of Federal Regulations, title 49, section 390.38, paragraph (b), including an individual 
82.18 	operating a pipeline welding truck and the employer of the individual, is exempt from any 
82.19 	requirement relating to:
82.20 	(1) registration as a motor carrier, including the requirement to obtain and display a 
82.21 	United States Department of Transportation number under subdivision 6 and section 168.185;
82.22 	(2) driver qualifications under section 221.0314, subdivision 2;
82.23 	(3) driving of commercial motor vehicles under section 221.0314, subdivision 6;
82.24 	(4) parts, accessories, and inspection, repair, and maintenance of commercial motor 
82.25 	vehicles under section 221.0314, subdivisions 7 and 10; and
82.26 	(5) hours of service of drivers, including maximum driving and on-duty time under 
82.27 	section 221.0314, subdivision 9.

82.28 	Sec. 75. Minnesota Statutes 2016, section 222.49, is amended to read:
82.29 	222.49 RAIL SERVICE IMPROVEMENT ACCOUNT; APPROPRIATION.
82.30 	The rail service improvement account is created in the special revenue fund in the state 
82.31 	treasury transportation priorities fund. The commissioner shall deposit in this account all
83.1 	consists of funds as provided by law, and any other money appropriated to or received by 
83.2 	the department for the purpose of rail service improvement donated, allotted, transferred, 
83.3 	or otherwise provided to the account, excluding bond proceeds as authorized by article XI, 
83.4 	section 5, clause (i), of the Minnesota Constitution. All money so deposited is appropriated 
83.5 	to the department for expenditure for rail service improvement in accordance with applicable 
83.6 	state and federal law. This appropriation shall not lapse but shall be available until the 
83.7 	purpose for which it was appropriated has been accomplished. No money appropriated to 
83.8 	the department for the purposes of administering the rail service improvement program 
83.9 	shall be deposited in the rail service improvement account nor shall such administrative 
83.10 	costs be paid from the account.

83.11 	Sec. 76. Minnesota Statutes 2016, section 222.50, subdivision 6, is amended to read:
83.12 		Subd. 6.Grants. The commissioner may approve grants from the rail service 
83.13 	improvement account for payment of up to 50 percent of the nonfederal share of the cost 
83.14 	of any rail line project under the federal rail service continuation program freight rail service 
83.15 	improvements that support economic development.

83.16 	Sec. 77. Minnesota Statutes 2016, section 222.50, is amended by adding a subdivision to 
83.17 	read:
83.18 		Subd. 6a.Grants; freight railroad preservation and improvement. (a) The 
83.19 	commissioner may make grants for freight railroad preservation and improvement as provided 
83.20 	in this subdivision and for the purposes specified in subdivision 7.
83.21 	(b) The following entities are eligible to receive grant funds under this subdivision: 
83.22 	railroad companies that are classified by federal law or regulation as class II railroads, class 
83.23 	II rail carriers, class III railroads, or class III carriers; rail users; and local units of 
83.24 	government. An eligible recipient may receive funds regardless of rail facility ownership.
83.25 	(c) When awarding grants, the commissioner must prioritize projects:
83.26 	(1) identified under subdivision 7, paragraph (a), clauses (2) and (3);
83.27 	(2) on segments experiencing low rail service use; and
83.28 	(3) for applicants who commit more than 20 percent of total project costs from nonstate 
83.29 	and nonfederal sources.
83.30 	(d) A grant under this subdivision must not exceed 80 percent of the total project cost.

84.1 	Sec. 78. Minnesota Statutes 2016, section 299D.03, subdivision 6, is amended to read:
84.2 		Subd. 6.Training program. The commissioner of public safety may provide training 
84.3 	programs for the purpose of obtaining qualified personnel for the State Patrol. Persons 
84.4 	accepted by the commissioner of public safety for training under this training program shall 
84.5 	be designated State Patrol trainees and shall receive a salary not to exceed no less than 70 
84.6 	percent of the basic salary for patrol officers as prescribed in subdivision 2, during the period 
84.7 	of the training. Nothing contained in this subdivision shall be construed to prevent the 
84.8 	commissioner of public safety from providing in-service training programs for State Patrol 
84.9 	officers. The commissioner of transportation shall furnish the commissioner of public safety 
84.10 	with lands and buildings necessary in providing in-service training programs and the 
84.11 	Department of Public Safety shall reimburse the Department of Transportation for all 
84.12 	reasonable costs incurred due to the provision of these training facilities.

84.13 	Sec. 79. [398A.095] LEGISLATIVE APPROVAL OF LIGHT RAIL PROJECTS.
84.14 	Notwithstanding any law to the contrary, a regional railroad authority is prohibited from 
84.15 	spending any money to study, plan, design, or construct a light rail transit line, or expand 
84.16 	an existing light rail line, unless the legislature has explicitly authorized the particular 
84.17 	project.

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

84.19 	Sec. 80. [471.987] LEGISLATIVE APPROVAL OF LIGHT RAIL PROJECTS.
84.20 	Notwithstanding any law to the contrary, a metropolitan county as defined in section 
84.21 	473.121, subdivision 4, or a home rule charter or statutory city located within the metropolitan 
84.22 	area as defined in section 473.121, subdivision 2, is prohibited from spending any money 
84.23 	to study, plan, design, or construct a light rail transit line, or expand an existing light rail 
84.24 	transit line, unless the legislature has explicitly authorized the particular project.

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

84.26 	Sec. 81. Minnesota Statutes 2016, section 473.13, subdivision 1, is amended to read:
84.27 		Subdivision 1.Budget. (a) On or before December 20 of each year, the council shall 
84.28 	adopt a final budget covering its anticipated receipts and disbursements for the ensuing year 
84.29 	and shall decide upon the total amount necessary to be raised from ad valorem tax levies 
84.30 	to meet its budget. The budget shall state in detail the expenditures for each program to be 
84.31 	undertaken, including the expenses for salaries, consultant services, overhead, travel, printing, 
84.32 	and other items. The budget shall state in detail the capital expenditures of the council for 
85.1 	the budget year, based on a five-year capital program adopted by the council and transmitted 
85.2 	to the legislature. After adoption of the budget and no later than five working days after 
85.3 	December 20, the council shall certify to the auditor of each metropolitan county the share 
85.4 	of the tax to be levied within that county, which must be an amount bearing the same 
85.5 	proportion to the total levy agreed on by the council as the net tax capacity of the county 
85.6 	bears to the net tax capacity of the metropolitan area. The maximum amount of any levy 
85.7 	made for the purpose of this chapter may not exceed the limits set by the statute authorizing 
85.8 	the levy.
85.9 	(b) Each even-numbered year the council shall prepare for its must include in its budget
85.10 	transit programs a financial plan financial planning information for the succeedingnext
85.11 	three calendar years, in half-year segments that coincide with the council and state fiscal 
85.12 	years. The financial plan information must contain schedules of user charges and any changes 
85.13 	in user charges planned or anticipated by the council during the period of the plan. The 
85.14 	financial plan information must contain a proposed request for state financial assistance, if 
85.15 	any, for the succeeding state biennium.
85.16 	(c) In addition, the budget must show for each year:
85.17 	(1) the estimated operating revenues from all sources including funds on hand at the 
85.18 	beginning of the year, and estimated expenditures for costs of operation, administration, 
85.19 	maintenance, and debt service;
85.20 	(2) capital improvement funds estimated to be on hand at the beginning of the year and 
85.21 	estimated to be received during the year from all sources and estimated cost of capital 
85.22 	improvements to be paid out or expended during the year, all in such detail and form as the 
85.23 	council may prescribe; and
85.24 	(3) the estimated source and use of pass-through funds.
85.25 	(d) In a year that is the second fiscal year of the state biennium, the budget must identify 
85.26 	state assistance from the general fund for transit operations at the same amount as the state 
85.27 	general fund base, if any.

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

86.1 	Sec. 82. Minnesota Statutes 2016, section 473.146, subdivision 3, is amended to read:
86.2 		Subd. 3.Development guide: transportation. (a) The transportation chapter must 
86.3 	include policies relating to all transportation forms and be designed to promote the legislative 
86.4 	determinations, policies, and goals set forth in section 473.371.
86.5 	(b) In addition to the policy plan content requirements under subdivision 1, the policy 
86.6 	plan must also establish as a primary objective an increase of the average farebox recovery 
86.7 	ratio, calculated for all regular routes and lines operated by the council, to at least 40 percent 
86.8 	by 2022. The plan must identify strategies to achieve the farebox recovery objective under 
86.9 	this paragraph.
86.10 	(c) In addition to the requirements of subdivision 1 regarding the contents of the policy 
86.11 	plan, the nontransit element of the transportation chapter must include the following:
86.12 	(1) a statement of the needs and problems of the metropolitan area with respect to the 
86.13 	functions covered, including the present and prospective demand for and constraints on 
86.14 	access to regional business concentrations and other major activity centers and the constraints 
86.15 	on and acceptable levels of development and vehicular trip generation at such centers;
86.16 	(2) the objectives of and the policies to be forwarded by the policy plan;
86.17 	(3) a general description of the physical facilities and services to be developed;
86.18 	(4) a statement as to the general location of physical facilities and service areas;
86.19 	(5) a general statement of timing and priorities in the development of those physical 
86.20 	facilities and service areas;
86.21 	(6) a detailed statement, updated every two years, of timing and priorities for 
86.22 	improvements and expenditures needed on the metropolitan highway system;
86.23 	(7) a general statement on the level of public expenditure appropriate to the facilities; 
86.24 	and
86.25 	(8) a long-range assessment of air transportation trends and factors that may affect airport 
86.26 	development in the metropolitan area and policies and strategies that will ensure a 
86.27 	comprehensive, coordinated, and timely investigation and evaluation of alternatives for 
86.28 	airport development.
86.29 	(d) The council shall develop the nontransit element in consultation with the transportation 
86.30 	advisory board and the Metropolitan Airports Commission and cities having an airport 
86.31 	located within or adjacent to its corporate boundaries. The council shall also take into 
87.1 	consideration the airport development and operations plans and activities of the commission. 
87.2 	The council shall transmit the results to the state Department of Transportation.

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

87.6 	Sec. 83. Minnesota Statutes 2016, section 473.388, subdivision 4, is amended to read:
87.7 		Subd. 4.Financial assistance. (a) The council must grant the requested financial 
87.8 	assistance if it determines that the proposed service is intended to replace the service to the 
87.9 	applying city or town or combination thereof by the council and that the proposed service 
87.10 	will meet the needs of the applicant at least as efficiently and effectively as the existing 
87.11 	service.
87.12 	(b) The minimum amount of assistance which the council must provide to a system 
87.13 	under this section may not be less than the sum of the amounts determined calculated for 
87.14 	each municipality comprising the system as follows: of the replacement service 
87.15 	municipalities.
87.16 	(c) The minimum amount of financial assistance for each replacement service 
87.17 	municipality is calculated as:
87.18 	(1) an amount equal to 4.3 percent of the total state revenues generated from the taxes 
87.19 	imposed under chapter 297B for the current fiscal year; times
87.20 	(2) the ratio of (i) the transit operating assistance grants received under this subdivision 
87.21 	by the municipality in calendar year 2001 or the tax revenues for transit services levied by 
87.22 	the municipality for taxes payable in 2001, including that portion of the levy derived from 
87.23 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the 
87.24 	municipality's aid under Minnesota Statutes 2002, section 273.1398, subdivision 2, 
87.25 	attributable to the transit levy; times (2) the ratio of (i) an amount equal to 3.74 percent of 
87.26 	the state revenues generated from the taxes imposed under chapter 297B for the current 
87.27 	fiscal year to (ii) the total transit operating assistance grants received under this subdivision 
87.28 	in calendar year 2001 or the tax revenues for transit services levied by all replacement 
87.29 	service municipalities under this section for taxes payable in 2001, including that portion 
87.30 	of the levy derived from the areawide pool under section 473F.08, subdivision 3, clause 
87.31 	(a), plus the portion of homestead and agricultural credit aid under Minnesota Statutes 2002, 
87.32 	section 273.1398, subdivision 2, attributable to nondebt transit levies; times
88.1 	(3) the ratio of (i) the municipality's total taxable market value for taxes payable in 2006 
88.2 	divided by the municipality's total taxable market value for taxes payable in 2001, to (ii) 
88.3 	the total taxable market value of all property located in replacement service municipalities 
88.4 	for taxes payable in 2006 divided by the total taxable market value of all property located 
88.5 	in replacement service municipalities for taxes payable in 2001.
88.6 	(c) The council shall pay the amount to be provided to the recipient from the funds the 
88.7 	council receives in the metropolitan area transit account under section 16A.88.

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

88.11 	Sec. 84. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to 
88.12 	read:
88.13 		Subd. 6.Limitation on certain debt obligations. The council is prohibited from issuing 
88.14 	certificates of participation, certificates of indebtedness, bonds, or other obligations secured 
88.15 	in whole or in part by a pledge of motor vehicle sales tax revenue received under sections 
88.16 	16A.88 and 297B.09, or by a pledge of any earnings from the council's investment of motor 
88.17 	vehicle sales tax revenues.

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

88.21 	Sec. 85. [473.3985] LEGISLATIVE APPROVAL OF LIGHT RAIL PROJECTS.
88.22 	Notwithstanding any law to the contrary, a responsible authority, as defined in section 
88.23 	473.3993, subdivision 4, is prohibited from spending any money to study, plan, design, or 
88.24 	construct a light rail line, or expand an existing light rail transit line, unless the legislature 
88.25 	has explicitly authorized the particular project.

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

89.1 	Sec. 86. Minnesota Statutes 2016, section 473.3994, is amended by adding a subdivision 
89.2 	to read:
89.3 		Subd. 15.Project development requirements; colocation. The council must establish 
89.4 	standards and criteria for colocation of freight rail and light rail transit on shared track or 
89.5 	on adjacent track in a shared rail corridor that apply to light rail transit project development. 
89.6 	The standards and criteria must:
89.7 	(1) identify colocation safety criteria based on the results of an independent audit and 
89.8 	review, which must be analyzed in an environmental impact statement for each applicable 
89.9 	light rail transit project;
89.10 	(2) incorporate substantially similar safety standards for a light rail transit project as 
89.11 	established by the Federal Railroad Administration for freight rail, including but not limited 
89.12 	to those pertaining to engineering, track-work planning, track safety, inspections, training 
89.13 	and operations, routing, emergency preparedness, and signage and warning systems;
89.14 	(3) prohibit operation of a train carrying oil or other hazardous substances through a 
89.15 	light rail transit project construction work zone;
89.16 	(4) specify project design elements to address safety considerations resulting from 
89.17 	colocation;
89.18 	(5) account for project costs resulting from colocation safety considerations; and
89.19 	(6) for adjacent track in a shared corridor, provide for sufficient track spacing separation 
89.20 	to ensure the likelihood of impacts on operations on a track due to derailment of a train on 
89.21 	the adjacent track is minimized.

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

89.25 	Sec. 87. Minnesota Statutes 2016, section 473.3994, is amended by adding a subdivision 
89.26 	to read:
89.27 		Subd. 16.Project development requirements; alternatives and benefits analysis. (a) 
89.28 	As part of light rail transit project development and prior to initiating an environmental 
89.29 	analysis or preliminary engineering, the responsible authority must perform an alternatives 
89.30 	and benefits analysis.
89.31 	(b) In addition to any other information or requirements, the alternatives and benefits 
89.32 	analysis must:
90.1 	(1) include (i) a no-build option; and (ii) options for each major transit mode, including 
90.2 	but not limited to regular route bus service, arterial bus rapid transit, highway bus rapid 
90.3 	transit, express bus service, and dedicated busway;
90.4 	(2) evaluate capacity adequacy and congestion impacts under each option;
90.5 	(3) include a comprehensive benefit-cost analysis; and
90.6 	(4) review conformity with the transportation policy plan under section 473.146.

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

90.10 	Sec. 88. Minnesota Statutes 2016, section 473.4051, subdivision 3, is amended to read:
90.11 		Subd. 3.Capital costs. State money may not be used to pay more than ten percent of 
90.12 	the total capital cost of a light rail transit project. The council and a local governmental unit 
90.13 	must not specify or estimate state sources of funds in financial planning for the capital cost 
90.14 	of a light rail transit project, unless funds have been specifically made available by law for 
90.15 	the project.

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

90.19 	Sec. 89. [473.4052] RIGHTS-OF-WAY USE; CONTRACTS.
90.20 	(a) The council or a metropolitan county, or public entity contracting with the council 
90.21 	or county, may contract with a railroad that is a class I, class II, or class III railroad under 
90.22 	federal law for the joint or shared use of right-of-way for light rail transit and freight rail 
90.23 	purposes or for the construction, operation, or maintenance of rail track, facilities, or services 
90.24 	for light rail transit and freight rail purposes.
90.25 	(b) Notwithstanding any law to the contrary, a contract under paragraph (a) may also 
90.26 	provide for the allocation of financial responsibility, indemnification, and the procurement 
90.27 	of insurance for the parties for all types of claims or damages.
90.28 	(c) Notwithstanding any law to the contrary, a class I, class II, or class III railroad 
90.29 	operating pursuant to a contract under this section has the same limits to liability for all 
90.30 	types of claims or damages as provided to a municipality under sections 466.04 and 466.06, 
90.31 	in an action arising from or related to an incident:
91.1 	(1) occurring within the joint or shared use of right-of-way; and
91.2 	(2) involving both freight rail and light rail transit.
91.3 	(d) A contract entered into under this section does not affect rights of employees under 
91.4 	the federal Employers' Liability Act (1908) (Railroads), Statutes at Large, volume 35, chapter 
91.5 	149, or the federal Railway Labor Act, Statutes at Large, volume 44, chapter 347.

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

91.11 	Sec. 90. TRANSPORTATION PROJECT SELECTION PROCESS.
 91.12 		Subdivision 1.Adoption of best practices. (a) The commissioner of transportation, 
91.13 	after consultation with the Federal Highway Administration, metropolitan planning 
91.14 	organizations, regional development commissions, area transportation partnerships, local 
91.15 	governments, the Metropolitan Council, and transportation stakeholders, must develop, 
91.16 	adopt, and implement best practices for project evaluation and selection to apply to the 
91.17 	standard project process and to special programs, such as corridors of commerce. The 
91.18 	commissioner must adopt and begin implementing the best practices no later than January 
91.19 	1, 2018, and may update the best practices as appropriate. The commissioner must publish 
91.20 	the best practices and updates on the department's Web site and through other effective 
91.21 	means selected by the commissioner.
91.22 	(b) The best practices adopted under this section must:
91.23 	(1) describe each selection process and identification of ranking criteria and weight of 
91.24 	each criterion with respect to any selection process;
91.25 	(2) identify and apply all relevant criteria contained in enacted Minnesota or federal law, 
91.26 	or added by the commissioner;
91.27 	(3) identify for stakeholders and the general public the candidate project selected under 
91.28 	each selection process and every project considered that was not selected;
91.29 	(4) involve area transportation partnerships and other local authorities, as appropriate, 
91.30 	in the process of scoring and ranking candidate projects under consideration; and
91.31 	(5) publicize scoring, ranking, and decision outcomes concerning each candidate project, 
91.32 	including the projects that were considered but not selected.
92.1 		Subd. 2.Report to legislature. By March 1, 2018, the commissioner must submit a 
92.2 	report to the members and staff of the legislative committees with jurisdiction over 
92.3 	transportation policy and finance concerning the adopted best practices and how the best 
92.4 	practices are anticipated to improve the consistency, objectivity, and transparency of the 
92.5 	selection process. The report must include information on input from members of the public 
92.6 	and the organizations identified in subdivision 1.

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

92.8 	Sec. 91. CORRIDORS OF COMMERCE PROJECT SELECTION.
 92.9 	Notwithstanding the requirements of Minnesota Statutes, section 161.088, subdivisions 
92.10 	3 to 5, the commissioner of transportation must include that segment of marked U.S. Highway 
92.11 	212 from Chaska to Montevideo as an eligible highway in the next project solicitation and 
92.12 	selection process undertaken for the corridors of commerce program under that section.

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

92.14 	Sec. 92. TRANSPORTATION POLICY PLAN UPDATE.
 92.15 	By December 31, 2017, the Metropolitan Council must revise the transportation policy 
92.16 	plan under Minnesota Statutes, section 473.146, subdivision 3.

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

92.19 	Sec. 93. REQUIREMENTS FOR CERTAIN LIGHT RAIL TRANSIT PROJECTS.
 92.20 	Subject to approval as provided under Minnesota Statutes, section 473.3985, the 
92.21 	requirements established under Minnesota Statutes, section 473.3994, subdivisions 15 and 
92.22 	16, apply to any light rail transit construction or expansion project that is in project 
92.23 	development, including but not limited to design or engineering, as of the effective date of 
92.24 	this section.

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

92.28 	Sec. 94. ELECTRONIC STORAGE STANDARDS.
 92.29 	On or before August 1, 2017, the commissioner of public safety must establish standards 
92.30 	for the conversion by deputy registrars and driver's license agents to secure electronic storage 
93.1 	of certain records under Minnesota Statutes, sections 168.33, subdivision 2, and 171.061, 
93.2 	subdivision 3. The standards must specify minimum system security requirements, as well 
93.3 	as any procedural requirements for the destruction of existing and new paper-based records, 
93.4 	consistent with the requirements of Minnesota Statutes, section 138.17. The authority to 
93.5 	establish or amend standards under this section expires August 1, 2018.

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

93.7 	Sec. 95. CONVEYANCE OF LAND; TOWN OF WILMA.
 93.8 	(a) Upon receipt of $100, the commissioner of transportation shall convey by quitclaim 
93.9 	deed the following described property and improvements thereon, owned by the state, to 
93.10 	the town of Wilma in Pine County, to be used by the Duxbury Volunteer Fire Department:
93.11 	That part of the Southwest Quarter of the Southeast Quarter of Section 8, Township 42 
93.12 	North, Range 17 West, Pine County, Minnesota, described as follows: Beginning at a point 
93.13 	on the south line of said Section 8, distant 1,318.35 feet West to the southeast corner thereof; 
93.14 	thence North along the east line of said Southwest Quarter of the Southeast Quarter for 300 
93.15 	feet; thence West for 200 feet; thence South for 300 feet to the south line of said Section 8; 
93.16 	thence East along said south line to the point of beginning.
93.17 	(b) The conveyance under this section must be in a form approved by the attorney general. 
93.18 	The attorney general may make changes to the land description to correct errors and ensure 
93.19 	accuracy.

93.20 	Sec. 96. CONVEYANCE FOR HISTORICAL PURPOSES; MCKINSTRY SURPLUS 
93.21 	LANDS.
 93.22 	(a) Notwithstanding any other law to the contrary, the commissioner may convey as 
93.23 	provided in Minnesota Statutes, section 161.44, land described in paragraph (b), including 
93.24 	any improvements on the lands, owned in fee by the state for trunk highway purposes, but 
93.25 	no longer needed, to the Minnesota Historical Society for historical purposes. The conveyance 
93.26 	must be without financial consideration. The lands conveyed must become a part of the 
93.27 	state's historic sites program under Minnesota Statutes, chapter 138.
93.28 	(b) The lands that may be conveyed are specifically related to the properties of the 
93.29 	McKinstry Mounds and portions of the McKinstry Village site owned by the Department 
93.30 	of Transportation, located along Trunk Highway 11 in Koochiching County.

94.1 	Sec. 97. DEPARTMENT OF TRANSPORTATION CONTRACT CANCELLATION 
94.2 	AND LOAN FORGIVENESS.
 94.3 	The commissioner of transportation must provide loan forgiveness for the $4,300,000 
94.4 	remaining balance on Contract No. 82799, originally executed with the Minnesota Valley 
94.5 	Regional Rail Authority on January 28, 2002, and must cancel all future payments under 
94.6 	the contract. The commissioner is prohibited from requiring or accepting additional payments 
94.7 	under Contract No. 82799 as of the effective date of this section.

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

94.9 	Sec. 98. DEPARTMENT OF TRANSPORTATION EFFICIENCIES.
 94.10 	(a) In fiscal years 2018 and 2019, the commissioner of transportation must implement 
94.11 	efficiencies, including as identified by the Transportation Strategic Management and 
94.12 	Operations Advisory Task Force report under Laws 2008, chapter 152, article 6, section 9, 
94.13 	equal to at least 15 percent of the appropriations made in this act to the commissioner from 
94.14 	the trunk highway fund in fiscal years 2018 and 2019 that are above base appropriations 
94.15 	for those years.
94.16 	(b) The efficiency savings resulting from the requirements in paragraph (a) are for the 
94.17 	construction, maintenance, or rehabilitation of trunk highways, including roads and bridges.

94.18 	Sec. 99. MARKED TRUNK HIGHWAY 316 SAFETY IN HASTINGS; 
94.19 	MORATORIUM AND REPORT.
 94.20 		Subdivision 1.Speed limit moratorium. The commissioner of transportation is 
94.21 	prohibited from adjusting or requiring adjustment to the speed limit on marked Trunk 
94.22 	Highway 316, known as Red Wing Boulevard, from the intersection with marked U.S. 
94.23 	Highway 61 to Tuttle Drive, in the city of Hastings. The prohibition in this subdivision does 
94.24 	not apply to (1) a local road authority that is authorized to adjust a speed limit without a 
94.25 	traffic and engineering study as provided in Minnesota Statutes, section 169.14; or (2) 
94.26 	establishment of a work zone speed limit under Minnesota Statutes, section 169.14, 
94.27 	subdivision 5d.
94.28 		Subd. 2.Legislative report. (a) By March 1, 2018, the commissioner of transportation 
94.29 	must submit a report on roadway safety on the segment of marked Trunk Highway 316 
94.30 	specified in subdivision 1 to the members and staff of the legislative committees with 
94.31 	jurisdiction over transportation policy and finance. As part of developing the report, the 
94.32 	commissioner must hold at least two hearings at locations within the city of Hastings.
95.1 	(b) At a minimum, the report must review road design and other safety issues on the 
95.2 	segment, identify options for safety improvements, provide details on the decision making 
95.3 	process for proposed speed limit adjustments, summarize and respond to comments from 
95.4 	the hearings required under paragraph (a), and include copies of recent traffic and engineering 
95.5 	studies on adjusting speed limits in Hastings.

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

95.7 	Sec. 100. MARKED INTERSTATE HIGHWAY 35 WEIGH STATION; 
95.8 	MORATORIUM AND REPORT.
 95.9 		Subdivision 1.Weigh station moratorium. On or before February 1, 2018, the 
95.10 	commissioner of transportation is prohibited from designing, engineering, or constructing 
95.11 	a motor vehicle weigh station for the southbound direction of travel on marked Interstate 
95.12 	Highway 35, between the marked Interstate Highways 35W/35E split and two miles northerly 
95.13 	of the split.
95.14 		Subd. 2.Legislative report. By February 1, 2018, the commissioner of transportation 
95.15 	must submit a report on weigh station access and traffic safety on the segment of marked 
95.16 	Interstate Highway 35 identified in subdivision 1 to the members and staff of the legislative 
95.17 	committees with jurisdiction over transportation policy and finance. At a minimum, the 
95.18 	report must include analysis of traffic safety impacts resulting from motor vehicle departures 
95.19 	from the proposed weigh station that proceed southerly on marked Interstate Highways 35E 
95.20 	or 35W.

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

95.22 	Sec. 101. DEFICIENT BRIDGE WEIGHT LIMITS; STUDY AND ANALYSIS.
 95.23 	(a) By November 15, 2017, the commissioner of transportation must complete a study 
95.24 	and analysis of posted weight limits on state and local bridges to identify deficient bridges 
95.25 	in those geographic regions of the state where fluid milk is transported from points of 
95.26 	production to points of first processing. The study and analysis must:
95.27 	(1) identify bridges with posted weight limits;
95.28 	(2) review the vehicle weight limits under Minnesota Statutes, chapter 169, including 
95.29 	Minnesota Statutes, section 169.8295, relative to bridge posting standards;
95.30 	(3) analyze vehicle routing considerations for transportation of fluid milk; and
96.1 	(4) include geographic mapping information that is made available to milk haulers, milk 
96.2 	processing facilities, local road authorities, and other interested stakeholders.
96.3 	(b) Upon request by the commissioner, local road authorities must provide information 
96.4 	on bridges under their respective jurisdictions in a timely manner.

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

96.6 	Sec. 102. TRUNK HIGHWAY 65 IMPROVEMENT STUDY.
 96.7 	(a) The commissioner of transportation must perform a study of congestion and safety 
96.8 	improvements on marked Trunk Highway 65 from northerly of Anoka County Highway 
96.9 	10 to Anoka County State-Aid Highway 116, known as Bunker Lake Boulevard, in Blaine 
96.10 	and Ham Lake. At a minimum, the study must:
96.11 	(1) analyze current and projected traffic congestion;
96.12 	(2) analyze impacts to freight transportation;
96.13 	(3) evaluate options and identify cost estimates to reduce congestion in the corridor; and
96.14 	(4) evaluate options and identify cost estimates for congestion reduction and safety 
96.15 	improvements at Anoka County State-Aid Highway 12, known as 109th Avenue.
96.16 	(b) The commissioner must submit a copy of the study to the members and staff of the 
96.17 	legislative committees with jurisdiction over transportation policy and finance.

96.18 	Sec. 103. INTERSTATE 94/494/694 INTERCHANGE IMPROVEMENT STUDY.
 96.19 	The commissioner of transportation must conduct a safety improvement and congestion 
96.20 	relief study for the interchange of marked Interstate Highways 94, 494, and 694 in the cities 
96.21 	of Oakdale and Woodbury. At a minimum, the study must: (1) provide specific 
96.22 	recommendations to improve the safety of the interchange and reduce congestion at the 
96.23 	interchange and on associated arterial roads; and (2) include cost estimates for each 
96.24 	recommended improvement. The commissioner must report the findings and 
96.25 	recommendations of the study to the legislative committees having jurisdiction over 
96.26 	transportation policy and finance within 180 days after the effective date of this section.

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

96.28 	Sec. 104. HIGHWAY CONSTRUCTION COSTS AND COST INFLATION STUDY.
 96.29 	(a) The commissioner of transportation must enter into an agreement with an organization 
96.30 	or entity having relevant expertise to conduct a study on highway construction costs, inflation, 
97.1 	and cost estimating. The study must be designed to identify and analyze the nature of 
97.2 	discrepancies in highway construction costs and cost inflation estimates between Minnesota 
97.3 	and other federal and national measures.
97.4 	(b) At a minimum, the study must:
97.5 	(1) include an overview of highway construction cost and cost estimation issues;
97.6 	(2) establish benchmarks to compare costs in Minnesota to at least four other states that 
97.7 	are comparable based on climate and construction characteristics, including historical 
97.8 	state-by-state review of at least the following cost factors: (i) direct input costs associated 
97.9 	with highway construction, (ii) cost impacts from construction standards and requirements 
97.10 	established in law, and (iii) cost impacts from use of alternative methods of contracting and 
97.11 	project management;
97.12 	(3) identify factors specific to Minnesota, if any, that contribute to cost differences, 
97.13 	based on the benchmarks established in clause (2);
97.14 	(4) evaluate the methodology used for highway construction cost calculation and indexing 
97.15 	in Minnesota, including (i) review of associated best practices, (ii) comparison of federal 
97.16 	and Minnesota state highway construction cost index methodologies utilizing historical cost 
97.17 	data for Minnesota, (iii) identification of the reasons for any past discrepancies or differences 
97.18 	between state and federal highway construction cost indexing, and (iv) analysis of the 
97.19 	historical accuracy of the Minnesota highway construction cost index compared to actual 
97.20 	costs; and
97.21 	(5) provide specific recommendations for road authorities and legislative changes to 
97.22 	reduce highway construction costs.
97.23 	(c) By February 15, 2018, the commissioner must submit a report on the study to the 
97.24 	members and staff of the legislative committees with jurisdiction over transportation policy 
97.25 	and finance.

97.26 	Sec. 105. VIBRATION SUSCEPTIBILITY STUDY ON CALHOUN ISLES 
97.27 	PROPERTY.
 97.28 	(a) Within 21 days from the effective date of this act, the Metropolitan Council must 
97.29 	enter into a contract with an engineering group for the engineering group to conduct a 
97.30 	vibration susceptibility study on Calhoun Isles property, including the high-rise building, 
97.31 	townhomes, and parking ramp. The study must:
98.1 	(1) evaluate the susceptibility of the Calhoun Isles property to vibration during 
98.2 	construction and during operations of a light rail train;
98.3 	(2) categorize the Calhoun Isles property based on the susceptibility evaluation; and
98.4 	(3) address mitigation measures and operational changes required to protect the Calhoun 
98.5 	Isles property from vibratory damage.
98.6 	(b) The Calhoun Isles Condominium Association must select the engineering group and 
98.7 	notify the Metropolitan Council of the selection within seven days from the effective date 
98.8 	of this act. The Metropolitan Council must bear the entire cost of the study.

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

98.12 	Sec. 106. REPORT ON DEDICATED FUND EXPENDITURES.
 98.13 	By February 15, 2018, the commissioners of transportation and public safety, in 
98.14 	consultation with the commissioner of management and budget, must jointly submit a report 
98.15 	to the members and staff of the legislative committees with jurisdiction over transportation 
98.16 	finance. The report must update the information required in the report under Laws 2015, 
98.17 	chapter 75, article 2, section 56, including a detailed list of expenditures and transfers from 
98.18 	the trunk highway fund and highway user tax distribution fund for fiscal years 2014 through 
98.19 	2018, and information on the purpose of each expenditure.

98.20 	Sec. 107. LEGISLATIVE ROUTE NO. 123 REMOVED.
 98.21 	(a) Minnesota Statutes, section 161.115, subdivision 54, is repealed effective the day 
98.22 	after the commissioner of transportation receives a copy of the agreement between the 
98.23 	commissioner and the governing body of Le Sueur County to transfer jurisdiction of 
98.24 	Legislative Route No. 123 and after the commissioner notifies the revisor of statutes under 
98.25 	paragraph (b).
98.26 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
98.27 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
98.28 	or in writing that the conditions required to transfer the route have been satisfied.

98.29 	Sec. 108. LEGISLATIVE ROUTE NO. 225 REMOVED.
 98.30 	(a) Minnesota Statutes, section 161.115, subdivision 156, is repealed effective the day 
98.31 	after the commissioner of transportation receives a copy of the agreement between the 
99.1 	commissioner and the governing body of Becker County to transfer jurisdiction of Legislative 
99.2 	Route No. 225 and after the commissioner notifies the revisor of statutes under paragraph 
99.3 	(b).
99.4 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
99.5 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
99.6 	or in writing that the conditions required to transfer the route have been satisfied.

99.7 	Sec. 109. REVISOR'S INSTRUCTION.
 99.8 	The revisor of statutes shall recodify (1) Minnesota Statutes, section 115A.908, as 
99.9 	Minnesota Statutes, section 168A.295; and (2) Minnesota Statutes, section 174.93, as 
99.10 	Minnesota Statutes, section 473.4485. The revisor shall correct any cross-references made 
99.11 	necessary by the recodifications.

99.12 	Sec. 110. LEGISLATIVE ROUTE NO. 101 REMOVED; REPEALER.
 99.13 	Minnesota Statutes 2016, section 161.115, subdivision 32, is repealed.

99.14 	Sec. 111. REPEALER.
 99.15 	(a) Minnesota Statutes 2016, section 473.4051, subdivision 2, is repealed.
99.16 	(b) Minnesota Rules, parts 8810.0800, subpart 3; and 8810.1300, subpart 4, are repealed.

APPENDIX 

Repealed Minnesota Statutes: H0861-4 

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. 

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.