1.1 	A bill for an act
1.2 	relating to transportation finance; establishing a budget for transportation; 
1.3 	appropriating money for transportation purposes, including Department of 
1.4 	Transportation, Metropolitan Council, and Department of Public Safety activities; 
1.5 	modifying various provisions governing transportation policy and finance; 
1.6 	allocating certain sales and use tax revenue; establishing accounts; requiring reports; 
1.7 	making technical changes; authorizing sale and issuance of state bonds;amending 
1.8 	Minnesota Statutes 2016, sections 15A.0815, subdivision 3; 53C.01, subdivision 
1.9 	2; 85.016; 116.03, by adding a subdivision; 117.189; 160.02, subdivision 27, by 
1.10 	adding subdivisions; 160.18, by adding a subdivision; 160.262, subdivisions 1, 3, 
1.11 	4; 160.266, subdivisions 3, 4, 5, by adding subdivisions; 161.04, subdivision 5; 
1.12 	161.081, subdivision 3; 161.088, subdivisions 4, 5, 7; 161.115, subdivision 190; 
1.13 	161.14, by adding subdivisions; 161.21, subdivision 1; 161.321, subdivision 6; 
1.14 	161.38, by adding a subdivision; 161.44, subdivisions 5, 6a, by adding a 
1.15 	subdivision; 168.013, subdivision 1a, by adding a subdivision; 168.021, 
1.16 	subdivisions 1, 2, 2a; 168.27, by adding a subdivision; 168.33, subdivision 2; 
1.17 	168A.09, subdivision 1; 168A.141; 168A.142; 169.011, subdivision 34, by adding 
1.18 	a subdivision; 169.14, by adding a subdivision; 169.18, subdivisions 5, 7; 169.345, 
1.19 	subdivisions 1, 3; 169.442, subdivision 5; 169.443, subdivision 2; 169.444, 
1.20 	subdivision 2; 169.449, subdivision 1; 169.4501, subdivisions 1, 2; 169.4503, 
1.21 	subdivisions 4, 7, 14, 23, 30; 169.64, subdivision 8; 169.80, subdivision 1; 169.829, 
1.22 	by adding a subdivision; 169.865, subdivision 3; 169.871, subdivision 1; 171.02, 
1.23 	subdivision 2b; 171.06, subdivision 2a; 171.061, subdivision 3; 171.12, subdivision 
1.24 	6; 173.02, subdivisions 18, 23, by adding subdivisions; 173.06, subdivision 1; 
1.25 	173.07, subdivision 1; 173.08, by adding subdivisions; 173.13, subdivision 11; 
1.26 	173.16, by adding subdivisions; 174.03, subdivisions 1a, 1c; 174.50, subdivisions 
1.27 	5, 6b, 6c, 7; 174.56, by adding a subdivision; 174.93; 221.031, by adding a 
1.28 	subdivision; 222.49; 222.50, subdivision 6; 256B.15, subdivision 1a; 297A.815, 
1.29 	subdivision 3; 297A.94; 297A.992, by adding a subdivision; 297B.01, subdivision 
1.30 	16; 299D.03, subdivision 6; 398A.10, subdivisions 3, 4; 473.121, subdivision 2; 
1.31 	473.123; 473.146, subdivisions 3, 4; 473.388, subdivision 4; 473.39, by adding a 
1.32 	subdivision; 473.3994, by adding a subdivision; 473.4051, subdivision 2; 473.857, 
1.33 	subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 160; 
1.34 	168; 168A; 169; 173; 174; 219; repealing Minnesota Statutes 2016, sections 
1.35 	160.262, subdivision 2; 160.265; 160.266, subdivisions 1, 2; 161.115, subdivision 
1.36 	32; 165.15, subdivision 8; 169.4502, subdivision 5; 219.375, subdivision 4; Laws 
1.37 	1994, chapter 628, article 1, section 8; Minnesota Rules, parts 8810.0800, subpart 
1.38 	3; 8810.1300, subpart 4; 8810.6000; 8810.6100; 8810.6300; 8810.6400; 8810.6500; 
2.1 	8810.6600; 8810.6700; 8810.6800; 8810.6900; 8810.7000; 8810.9910; 8810.9911; 
2.2 	8810.9912; 8810.9913.
2.3 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.4 	ARTICLE 1
2.5 	TRANSPORTATION APPROPRIATIONS

2.6	Section 1. TRANSPORTATION APPROPRIATIONS
 	
2.7 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
2.8 	and for the purposes specified in this article. The appropriations are from the trunk highway 
2.9 	fund, or another named fund, and are available for the fiscal years indicated for each purpose. 
2.10 	Amounts for "Total Appropriation" and sums shown in the corresponding columns marked 
2.11 	"Appropriations by Fund" are summary only and do not have legal effect. Unless specified 
2.12 	otherwise, the amounts in the second year under "Appropriations by Fund" show the base 
2.13 	within the meaning of Minnesota Statutes, section 16A.11, subdivision 3, by fund. The 
2.14 	figures "2018" and "2019" used in this article mean that the appropriations listed under them 
2.15 	are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The 
2.16 	first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" is 
2.17 	fiscal years 2018 and 2019.

2.18				APPROPRIATIONS
	
2.19				Available for the Year
	
2.20				Ending June 30
	
2.21					2018
		2019

2.22
2.23	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

2.24	Subdivision 1.Total Appropriation
 	$
	2,990,529,000
	$
	2,912,541,000

2.25	Appropriations by Fund
	
2.26		2018
	2019
	
2.27	General
	23,458,000
	38,358,000
	
2.28	Airports
	34,812,000
	21,909,000
	
2.29	C.S.A.H.
	775,251,000
	802,819,000
	
2.30	M.S.A.S.
	194,122,000
	201,020,000
	
2.31	Special Revenue
	2,500,000
	0
	
2.32	Trunk Highway
	1,960,386,000
	1,848,435,000
	
2.33 	The appropriations in this section are to the 
2.34 	commissioner of transportation. The amounts 
3.1 	that may be spent for each purpose are 
3.2 	specified in the following subdivisions.

3.3	Subd. 2.Multimodal Systems
 					
3.4 	(a) Aeronautics

3.5	(1) Airport Development and Assistance
		26,001,000
		16,598,000
	
3.6 	This appropriation is from the state airports 
3.7 	fund and must be spent according to 
3.8 	Minnesota Statutes, section 360.305, 
3.9 	subdivision 4.
3.10 	Notwithstanding Minnesota Statutes, section 
3.11 	16A.28, subdivision 6, this appropriation is 
3.12 	available for five years after the year of the 
3.13 	appropriation. If the appropriation for either 
3.14 	year is insufficient, the appropriation for the 
3.15 	other year is available for it.
3.16 	$6,619,000 in the first year is for a grant to 
3.17 	the Duluth Airport Authority to provide the 
3.18 	federal match to design and construct runway 
3.19 	infrastructure at the Duluth International 
3.20 	Airport or the Sky Harbor Airport in 
3.21 	accordance with Minnesota Statutes, section 
3.22 	360.017. For the purposes of this 
3.23 	appropriation, the commissioner may waive 
3.24 	the requirements of Minnesota Statutes, 
3.25 	section 360.305, subdivision 4, paragraph (b). 
3.26 	This is a onetime appropriation.
3.27 	$2,334,000 in the first year is for a grant to 
3.28 	the city of Rochester to design, rehabilitate, 
3.29 	demolish, and expand portions of the existing 
3.30 	passenger terminal building at the Rochester 
3.31 	International Airport, provided that this 
3.32 	amount also includes money to remodel, 
3.33 	construct, furnish, and equip the existing 
3.34 	passenger terminal building and associated 
4.1 	appurtenances to meet the United States 
4.2 	Customs and Border Protection and 
4.3 	Transportation Security Administration 
4.4 	standards for safety, security, and processing 
4.5 	time to accommodate domestic and 
4.6 	international flights. The capital improvements 
4.7 	paid for with this appropriation may be used 
4.8 	as the local contribution required by 
4.9 	Minnesota Statutes, section 360.305, 
4.10 	subdivision 4. This appropriation may be used 
4.11 	to reimburse the city for costs incurred after 
4.12 	May 1, 2016. This appropriation is not 
4.13 	available until the commissioner of 
4.14 	management and budget has determined that 
4.15 	at least an equal amount has been committed 
4.16 	to the project from nonstate sources. Work 
4.17 	that may be completed with this appropriation 
4.18 	includes but is not limited to (i) site 
4.19 	preparation, including utilities, site civil work, 
4.20 	testing, and construction administration 
4.21 	services, (ii) the relocation, modification, and 
4.22 	addition of airline ticket counters, baggage 
4.23 	claim devices, public spaces, offices, 
4.24 	restrooms, support space, break rooms, 
4.25 	lockers, equipment storage, communications, 
4.26 	hallways, building signage, medical visitor 
4.27 	rooms, special needs accommodations, hold 
4.28 	rooms, secure storage, equipment maintenance 
4.29 	area, and building engineering and technology 
4.30 	systems, (iii) improvements needed outside 
4.31 	the terminal to remove, restore, and tie into 
4.32 	adjacent utilities, sidewalks, driveways, 
4.33 	parking lots, and aircraft aprons, and (iv) the 
4.34 	construction of covered exterior equipment 
4.35 	storage. This is a onetime appropriation.
5.1 	Notwithstanding Minnesota Statutes, section 
5.2 	360.017, $250,000 in the first year is for a 
5.3 	grant to the city of St. Cloud for an air 
5.4 	transport optimization planning study for the 
5.5 	St. Cloud Regional Airport. The study must 
5.6 	be comprehensive and market-based, using 
5.7 	economic development and air service 
5.8 	expertise to research, analyze, and develop 
5.9 	models and strategies that maximize the return 
5.10 	on investments made to enhance the use and 
5.11 	impact of the St. Cloud Regional Airport. By 
5.12 	January 5, 2018, the city of St. Cloud shall 
5.13 	submit a report to the governor and the 
5.14 	members and staff of the legislative 
5.15 	committees with jurisdiction over capital 
5.16 	investment, transportation, and economic 
5.17 	development with recommendations based on 
5.18 	the findings of the study. This is a onetime 
5.19 	appropriation.
5.20 	If the commissioner of transportation 
5.21 	determines that a balance remains in the state 
5.22 	airports fund following the appropriations 
5.23 	made in this article and that the appropriations 
5.24 	made are insufficient for advancing airport 
5.25 	development and assistance projects, an 
5.26 	amount necessary to advance the projects, not 
5.27 	to exceed the balance in the state airports fund, 
5.28 	is appropriated in each year to the 
5.29 	commissioner and must be spent according to 
5.30 	Minnesota Statutes, section 360.305, 
5.31 	subdivision 4. Within two weeks of a 
5.32 	determination under this contingent 
5.33 	appropriation, the commissioner of 
5.34 	transportation must notify the commissioner 
5.35 	of management and budget and the chairs, 
5.36 	ranking minority members, and staff of the 
6.1 	legislative committees with jurisdiction over 
6.2 	transportation finance concerning the funds 
6.3 	appropriated. Funds appropriated under this 
6.4 	contingent appropriation do not adjust the base  
6.5 	for fiscal years 2020 and 2021.
6.6 	The base is $15,298,000 in each of fiscal years 
6.7 	2020 and 2021.

6.8	(2) Aviation Support and Services
		6,710,000
		6,854,000

6.9	Appropriations by Fund
	
6.10		2018
	2019
	
6.11	Airports
	5,231,000
	5,231,000
	
6.12	Trunk Highway
	1,479,000
	1,623,000

6.13	(3) Civil Air Patrol
		3,580,000
		80,000
	
6.14 	This appropriation is from the state airports 
6.15 	fund for the Civil Air Patrol.
6.16 	$3,500,000 in the first year is for a grant to 
6.17 	renovate a portion of and construct an addition 
6.18 	to the training and maintenance facility located 
6.19 	at the South St. Paul airport, and to furnish 
6.20 	and equip the facility, including 
6.21 	communications equipment. Notwithstanding 
6.22 	Minnesota Statutes, section 16A.28, 
6.23 	subdivision 6, this appropriation is available 
6.24 	for five years after the year of the 
6.25 	appropriation. This is a onetime appropriation.

6.26	(b) Transit
		1,241,000
		18,268,000

6.27	Appropriations by Fund
	
6.28		2018
	2019
	
6.29	General
	395,000
	17,395,000
	
6.30	Trunk Highway
	846,000
	873,000
	
6.31 	$150,000 in each year is from the general fund 
6.32 	for grants to transportation management 
6.33 	organizations that provide services exclusively 
6.34 	or primarily in the city located along the 
7.1 	marked Interstate Highway 494 corridor 
7.2 	having the highest population as of the 
7.3 	effective date of this section. The 
7.4 	commissioner must not retain any portion of 
7.5 	the funds appropriated under this section. 
7.6 	From the appropriation in each fiscal year, the 
7.7 	commissioner must make grant payments in 
7.8 	full by July 31. Permissible uses of funds 
7.9 	under this grant include administrative 
7.10 	expenses and programming and service 
7.11 	expansion, including but not limited to 
7.12 	staffing, communications, outreach and 
7.13 	education program development, and 
7.14 	operations management. This is a onetime 
7.15 	appropriation.
7.16 	The base from the general fund is $17,245,000 
7.17 	in each year for fiscal years 2020 and 2021.

7.18	(c) Safe Routes to School
		1,500,000
		500,000
	
7.19 	This appropriation is from the general fund 
7.20 	for the safe routes to school program under 
7.21 	Minnesota Statutes, section 174.40.
7.22 	(d) Freight

7.23	(1) Freight and Commercial Vehicle Operations
		9,356,000
		5,928,000

7.24	Appropriations by Fund
	
7.25		2018
	2019
	
7.26	General
	1,506,000
	406,000
	
7.27	Special Revenue
	2,500,000
	0
	
7.28	Trunk Highway
	5,350,000
	5,522,000
	
7.29 	$1,100,000 in the first year is from the general 
7.30 	fund for port development assistance grants 
7.31 	under Minnesota Statutes, chapter 457A, to 
7.32 	the city of Red Wing and to the Port Authority 
7.33 	of Winona. Any improvements made with the 
7.34 	proceeds of the grants must be publicly owned. 
8.1 	This is a onetime appropriation and is 
8.2 	available in the second year.
8.3 	$150,000 in each year is from the general fund 
8.4 	for additional rail safety and rail service 
8.5 	activities.
8.6 	$1,000,000 in the first year is from the rail 
8.7 	service improvement account in the special 
8.8 	revenue fund for a grant to the city of Grand 
8.9 	Rapids to fund rail planning studies, design, 
8.10 	and preliminary engineering relating to the 
8.11 	construction of a freight rail line located in the 
8.12 	counties of Itasca, St. Louis, and Lake to serve 
8.13 	local producers and shippers. The city of 
8.14 	Grand Rapids shall collaborate with the Itasca 
8.15 	Economic Development Corporation and the 
8.16 	Itasca County Regional Railroad Authority in 
8.17 	the activities funded with the proceeds of this 
8.18 	grant. This is a onetime appropriation and is 
8.19 	available until June 30, 2019.
8.20 	$1,500,000 in the first year is from the rail 
8.21 	service improvement account in the special 
8.22 	revenue fund for a grant to a railroad company 
8.23 	classified by federal law as a Class III railroad 
8.24 	or Class III carrier, to repair or rehabilitate a 
8.25 	line of railroad track that serves at least one 
8.26 	industrial park located in the metropolitan 
8.27 	area, as defined in Minnesota Statutes, section 
8.28 	473.121, subdivision 2. This is a onetime 
8.29 	appropriation and is available until June 30, 
8.30 	2019.

8.31	(2) Hazardous Materials Rail Safety
		3,000,000
		3,000,000
	
8.32 	This appropriation is from the general fund 
8.33 	for the hazardous materials rail safety program 
8.34 	and grants under Minnesota Statutes, section 
8.35 	219.016. This is a onetime appropriation.

9.1	Subd. 3.State Roads

9.2	(a) Operations and Maintenance
		344,325,000
		332,313,000
	
9.3 	The base is $324,256,000 in fiscal year 2020 
9.4 	and $322,674,000 in fiscal year 2021.

9.5	(b) Program Planning and Delivery

9.6	(1) Planning and Research
		34,588,000
		32,643,000
	
9.7 	If a balance remains of this appropriation, the 
9.8 	commissioner may transfer up to that amount 
9.9 	for program delivery under clause (2).
9.10 	Up to $160,000 in the first year is for the 
9.11 	highway construction costs and cost inflation 
9.12 	study under article 3, section 137. This is a 
9.13 	onetime appropriation.
9.14 	$130,000 in each year is available for 
9.15 	administrative costs of the targeted group 
9.16 	business program.
9.17 	$266,000 in each year is available for grants 
9.18 	to metropolitan planning organizations outside 
9.19 	the seven-county metropolitan area.
9.20 	$900,000 in each year is available for grants 
9.21 	for transportation studies outside the 
9.22 	metropolitan area to identify critical concerns, 
9.23 	problems, and issues. These grants are 
9.24 	available:
9.25 	(1) to regional development commissions;
9.26 	(2) in regions where no regional development 
9.27 	commission is functioning, to joint powers 
9.28 	boards established under agreement of two or 
9.29 	more political subdivisions in the region to 
9.30 	exercise the planning functions of a regional 
9.31 	development commission; and
9.32 	(3) in regions where no regional development 
9.33 	commission or joint powers board is 
10.1 	functioning, to the Department of 
10.2 	Transportation district office for that region.
10.3 	The base is $31,972,000 in fiscal year 2020 
10.4 	and $31,840,000 in fiscal year 2021.

10.5	(2) Program Delivery
		231,855,000
		224,764,000
	
10.6 	This appropriation includes use of consultants 
10.7 	to support development and management of 
10.8 	projects.
10.9 	Up to $140,000 in the first year is for 
10.10 	development, implementation, and reporting 
10.11 	on project selection policy under article 3, 
10.12 	section 128. This is a onetime appropriation.
10.13 	$1,000,000 in each year is available for 
10.14 	management of contaminated and regulated 
10.15 	material on property owned by the Department 
10.16 	of Transportation, including mitigation of 
10.17 	property conveyances, facility acquisition or 
10.18 	expansion, chemical release at maintenance 
10.19 	facilities, and spills on the trunk highway 
10.20 	system where there is no known responsible 
10.21 	party. If the appropriation for either year is 
10.22 	insufficient, the appropriation for the other 
10.23 	year is available for it.
10.24 	The base is $219,393,000 in fiscal year 2020 
10.25 	and $218,338,000 in fiscal year 2021.

10.26	(c) State Road Construction
		1,012,315,000
		891,055,000
	
10.27 	This appropriation is for the actual 
10.28 	construction, reconstruction, and improvement 
10.29 	of trunk highways, including design-build 
10.30 	contracts, internal department costs associated 
10.31 	with delivering the construction program, 
10.32 	consultant usage to support these activities, 
10.33 	and the cost of actual payments to landowners 
10.34 	for lands acquired for highway rights-of-way, 
11.1 	payment to lessees, interest subsidies, and 
11.2 	relocation expenses.
11.3 	This appropriation includes federal highway 
11.4 	aid.
11.5 	The commissioner may expend up to one-half 
11.6 	of one percent of the federal appropriations 
11.7 	under this paragraph as grants to opportunity 
11.8 	industrialization centers and other nonprofit 
11.9 	job training centers for job training programs 
11.10 	related to highway construction.
11.11 	The commissioner may transfer up to 
11.12 	$15,000,000 each year to the transportation 
11.13 	revolving loan fund.
11.14 	The commissioner may receive money 
11.15 	covering other shares of the cost of partnership 
11.16 	projects. These receipts are appropriated to 
11.17 	the commissioner for these projects.
11.18 	The base is $871,586,000 in fiscal year 2020 
11.19 	and $867,763,000 in fiscal year 2021.

11.20	(d) Corridors of Commerce
		25,000,000
		25,000,000
	
11.21 	This appropriation is for the corridors of 
11.22 	commerce program under Minnesota Statutes, 
11.23 	section 161.088.
11.24 	The commissioner may use up to 17 percent 
11.25 	of the amount each year for program delivery.

11.26	(e) Highway Debt Service
		225,536,000
		253,625,000
	
11.27 	$216,036,000 in fiscal year 2018 and 
11.28 	$244,125,000 in fiscal year 2019 are for 
11.29 	transfer to the state bond fund. If this 
11.30 	appropriation is insufficient to make all 
11.31 	transfers required in the year for which it is 
11.32 	made, the commissioner of management and 
11.33 	budget must transfer the deficiency amount 
12.1 	under the statutory open appropriation and 
12.2 	notify the chairs, ranking minority members, 
12.3 	and staff of the legislative committees with 
12.4 	jurisdiction over transportation finance and 
12.5 	the chairs of the senate Finance Committee 
12.6 	and the house of representatives Ways and 
12.7 	Means Committee of the amount of the 
12.8 	deficiency. Any excess appropriation cancels 
12.9 	to the trunk highway fund.

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

12.11	Appropriations by Fund
	
12.12		2018
	2019
	
12.13	General
	3,000
	3,000
	
12.14	Trunk Highway
	5,645,000
	5,826,000
	
12.15 	$3,000 in each year is from the general fund 
12.16 	to equip and operate the Roosevelt signal 
12.17 	tower for Lake of the Woods weather 
12.18 	broadcasting.

12.19	Subd. 4.Local Roads

12.20	(a) County State-Aid Roads
		782,251,000
		809,819,000

12.21	Appropriations by Fund
	
12.22		2018
	2019
	
12.23	C.S.A.H.
	775,251,000
	802,819,000
	
12.24	General
	7,000,000
	7,000,000
	
12.25 	The appropriation from the county state-aid 
12.26 	highway fund is under Minnesota Statutes, 
12.27 	sections 161.081 and 297A.815, subdivision 
12.28 	3, and chapter 162, and is available until June 
12.29 	30, 2027.
12.30 	$5,000,000 in each year is from the general 
12.31 	fund for distribution to counties in the 
12.32 	metropolitan area, as defined in Minnesota 
12.33 	Statutes, section 473.121, subdivision 4, for 
12.34 	construction, reconstruction, and maintenance 
13.1 	of county highways, including county state-aid 
13.2 	highways. The distribution must be calculated 
13.3 	so that each county receives from this amount 
13.4 	the percentage that its population, as defined 
13.5 	in Minnesota Statutes, section 477A.011, 
13.6 	subdivision 3, estimated or established by July 
13.7 	15 of the year prior to the current calendar 
13.8 	year, bears to the total population of the 
13.9 	counties receiving funds under this rider. For 
13.10 	purposes of this rider, the population of each 
13.11 	county containing a statutory or home rule 
13.12 	charter city of the first class is calculated at 
13.13 	0.25 multiplied by that county's population as 
13.14 	otherwise determined. All projects must be 
13.15 	located outside cities of the first class. This is 
13.16 	a onetime appropriation.
13.17 	$2,000,000 in each year is from the general 
13.18 	fund for town roads, to be distributed in the 
13.19 	manner provided under Minnesota Statutes, 
13.20 	section 162.081. This is a onetime 
13.21 	appropriation.
13.22 	If the commissioner of transportation 
13.23 	determines that a balance remains in the 
13.24 	county state-aid highway fund following the 
13.25 	appropriations and transfers made in this 
13.26 	paragraph, and that the appropriations made 
13.27 	are insufficient for advancing county state-aid 
13.28 	highway projects, an amount necessary to 
13.29 	advance the projects, not to exceed the balance 
13.30 	in the county state-aid highway fund, is 
13.31 	appropriated in each year to the commissioner. 
13.32 	Within two weeks of a determination under 
13.33 	this contingent appropriation, the 
13.34 	commissioner of transportation shall notify 
13.35 	the commissioner of management and budget 
14.1 	and the chairs, ranking minority members, and 
14.2 	staff of the legislative committees with 
14.3 	jurisdiction over transportation finance 
14.4 	concerning funds appropriated. The 
14.5 	commissioner shall identify in the next budget 
14.6 	submission to the legislature under Minnesota 
14.7 	Statutes, section 16A.11, any amount that is 
14.8 	appropriated under this paragraph.

14.9	(b) Municipal State-Aid Roads
		194,122,000
		201,020,000
	
14.10 	This appropriation is from the municipal 
14.11 	state-aid street fund under Minnesota Statutes, 
14.12 	chapter 162, and is available until June 30, 
14.13 	2027.
14.14 	If the commissioner of transportation 
14.15 	determines that a balance remains in the 
14.16 	municipal state-aid street fund following the 
14.17 	appropriations and transfers made in this 
14.18 	paragraph, and that the appropriations made 
14.19 	are insufficient for advancing municipal 
14.20 	state-aid street projects, an amount necessary 
14.21 	to advance the projects, not to exceed the 
14.22 	balance in the municipal state-aid street fund, 
14.23 	is appropriated in each year to the 
14.24 	commissioner. Within two weeks of a 
14.25 	determination under this contingent 
14.26 	appropriation, the commissioner of 
14.27 	transportation shall notify the commissioner 
14.28 	of management and budget and the chairs, 
14.29 	ranking minority members, and staff of the 
14.30 	legislative committees with jurisdiction over 
14.31 	transportation finance concerning funds 
14.32 	appropriated. The commissioner shall identify 
14.33 	in the next budget submission to the legislature 
14.34 	under Minnesota Statutes, section 16A.11, any 
15.1 	amount that is appropriated under this 
15.2 	paragraph.

15.3	(c) Small Cities Assistance
		10,000,000
		10,000,000
	
15.4 	This appropriation is from the general fund 
15.5 	for the small cities assistance program under 
15.6 	Minnesota Statutes, section 162.145. This is 
15.7 	a onetime appropriation.

15.8	Subd. 5.Agency Management

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

15.10	(b) Buildings
		28,585,000
		29,439,000

15.11	Appropriations by Fund
	
15.12		2018
	2019
	
15.13	General
	54,000
	54,000
	
15.14	Trunk Highway
	28,531,000
	29,385,000
	
15.15 	Any money appropriated to the commissioner 
15.16 	of transportation for building construction for 
15.17 	any fiscal year before the first year is available 
15.18 	to the commissioner during the biennium to 
15.19 	the extent that the commissioner spends the 
15.20 	money on the building construction projects 
15.21 	for which the money was originally 
15.22 	encumbered during the fiscal year for which 
15.23 	it was appropriated. If the appropriation for 
15.24 	either year is insufficient, the appropriation 
15.25 	for the other year is available for it.

15.26	(c) Tort Claims
		600,000
		600,000
	
15.27 	If the appropriation for either year is 
15.28 	insufficient, the appropriation for the other 
15.29 	year is available for it.

15.30	Subd. 6.Transfers
 					
15.31 	(a) With the approval of the commissioner of 
15.32 	management and budget, the commissioner 
15.33 	of transportation may transfer unencumbered 
15.34 	balances among the appropriations from the 
16.1 	trunk highway fund and the state airports fund 
16.2 	made in this section. Transfers under this 
16.3 	paragraph must not be made:
16.4 	(1) between funds;
16.5 	(2) from the appropriations for state road 
16.6 	construction or debt service; or
16.7 	(3) from the appropriations for operations and 
16.8 	maintenance or program delivery, except for 
16.9 	a transfer to state road construction or debt 
16.10 	service.
16.11 	(b) The commissioner of transportation must 
16.12 	immediately report transfers under paragraph 
16.13 	(a) to the chairs, ranking minority members, 
16.14 	and staff of the legislative committees with 
16.15 	jurisdiction over transportation finance. The 
16.16 	authority for the commissioner of 
16.17 	transportation to make transfers under 
16.18 	Minnesota Statutes, section 16A.285, is 
16.19 	superseded by the authority and requirements 
16.20 	under this paragraph.
16.21 	(c) The commissioner of transportation must 
16.22 	transfer from the flexible highway account in 
16.23 	the county state-aid highway fund the entire 
16.24 	amount in each year to the county turnback 
16.25 	account in the county state-aid highway fund. 
16.26 	The funds transferred are for highway 
16.27 	turnback purposes under Minnesota Statutes, 
16.28 	section 161.081, subdivision 3.

16.29
16.30	Subd. 7.Previous State Road Construction 
Appropriations
 					
16.31 	Any money appropriated to the commissioner 
16.32 	of transportation for state road construction 
16.33 	for any fiscal year before the first year is 
16.34 	available to the commissioner during the 
17.1 	biennium to the extent that the commissioner 
17.2 	spends the money on the state road 
17.3 	construction project for which the money was 
17.4 	originally encumbered during the fiscal year 
17.5 	for which it was appropriated.

17.6	Subd. 8.Contingent Appropriations
 					
17.7 	The commissioner of transportation, with the 
17.8 	approval of the governor and the written 
17.9 	approval of at least five members of a group 
17.10 	consisting of the members of the Legislative 
17.11 	Advisory Commission under Minnesota 
17.12 	Statutes, section 3.30, and the ranking minority 
17.13 	members of the legislative committees with 
17.14 	jurisdiction over transportation finance, may 
17.15 	transfer all or part of the unappropriated 
17.16 	balance in the trunk highway fund to an 
17.17 	appropriation:
17.18 	(1) for trunk highway design, construction, or 
17.19 	inspection that takes advantage of an 
17.20 	unanticipated receipt of income to the trunk 
17.21 	highway fund or federal advanced construction 
17.22 	funding;
17.23 	(2) for emergency trunk highway maintenance; 
17.24 	or
17.25 	(3) to pay tort or environmental claims.
17.26 	Nothing in this subdivision authorizes the 
17.27 	commissioner to increase the use of federal 
17.28 	advanced construction funding beyond 
17.29 	amounts specifically authorized. Any transfer 
17.30 	as a result of the use of federal advanced 
17.31 	construction funding must include an analysis 
17.32 	of the effects on the long-term trunk highway 
17.33 	fund balance. The amount transferred is 
18.1 	appropriated for the purpose of the account to 
18.2 	which it is transferred.

18.3
18.4	Subd. 9.Requirements for Certain Legal 
Activities
 					
18.5 	The commissioner of transportation is 
18.6 	prohibited from permitting legal counsel 
18.7 	employed by the Department of Transportation 
18.8 	to perform activities related to response to a 
18.9 	data practices request of the department under 
18.10 	Minnesota Statutes, chapter 13, and the 
18.11 	commissioner must enter into an agreement 
18.12 	with the attorney general for exclusive services 
18.13 	regarding these activities.

18.14	Sec. 3. METROPOLITAN COUNCIL
 	$
	116,046,000
	$
	114,820,000
	
18.15 	This appropriation is from the general fund 
18.16 	for transit system operations under Minnesota 
18.17 	Statutes, sections 473.371 to 473.449.
18.18 	$1,000,000 in the first year is for financial 
18.19 	assistance to replacement service providers 
18.20 	under Minnesota Statutes, section 473.388, 
18.21 	for the purposes of the suburb-to-suburb transit 
18.22 	demonstration project authorized under Laws 
18.23 	2015, chapter 75, article 1, section 4. The 
18.24 	council must not retain any portion of the 
18.25 	funds under this appropriation. This is a 
18.26 	onetime appropriation.
18.27 	Up to $226,000 in the first year is for the 
18.28 	comprehensive transit finance report under 
18.29 	Minnesota Statutes, section 174.93. This is a 
18.30 	onetime appropriation and is available in the 
18.31 	second year.
18.32 	The base is $89,820,000 in fiscal year 2020 
18.33 	and $89,820,000 in fiscal year 2021.

19.1	Sec. 4. DEPARTMENT OF PUBLIC SAFETY

19.2	Subdivision 1.Total Appropriation
 	$
	199,838,000
	$
	199,407,000

19.3	Appropriations by Fund
	
19.4		2018
	2019
	
19.5	General
	19,971,000
	14,381,000
	
19.6	Special Revenue
	63,945,000
	65,087,000
	
19.7	H.U.T.D.
	10,474,000
	10,486,000
	
19.8	Trunk Highway
	105,448,000
	109,453,000
	
19.9 	The appropriations in this section are to the 
19.10 	commissioner of public safety. The amounts 
19.11 	that may be spent for each purpose are 
19.12 	specified in the following subdivisions.

19.13	Subd. 2.Administration and Related Services

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

19.15	Appropriations by Fund
	
19.16		2018
	2019
	
19.17	General
	127,000
	130,000
	
19.18	Trunk Highway
	426,000
	443,000

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

19.20	Appropriations by Fund
	
19.21		2018
	2019
	
19.22	General
	1,225,000
	1,235,000
	
19.23	H.U.T.D.
	1,366,000
	1,366,000
	
19.24	Trunk Highway
	3,781,000
	3,968,000

19.25	(c) Public Safety Officer Survivor Benefits
		640,000
		640,000
	
19.26 	This appropriation is from the general fund 
19.27 	for payment of public safety officer survivor 
19.28 	benefits under Minnesota Statutes, section 
19.29 	299A.44.
19.30 	If the appropriation for either year is 
19.31 	insufficient, the appropriation for the other 
19.32 	year is available for it.

19.33	(d) Public Safety Officer Reimbursements
		1,367,000
		1,367,000
	
20.1 	This appropriation is from the general fund to 
20.2 	be deposited in the public safety officer's 
20.3 	benefit account. This money is available for 
20.4 	reimbursements under Minnesota Statutes, 
20.5 	section 299A.465.

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

20.7	Appropriations by Fund
	
20.8		2018
	2019
	
20.9	General
	600,000
	600,000
	
20.10	Trunk Highway
	100,000
	100,000
	
20.11 	This appropriation is for soft body armor 
20.12 	reimbursements under Minnesota Statutes, 
20.13 	section 299A.38.

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

20.15	Appropriations by Fund
	
20.16		2018
	2019
	
20.17	General
	1,353,000
	1,365,000
	
20.18	H.U.T.D.
	19,000
	19,000
	
20.19	Trunk Highway
	2,405,000
	2,430,000

20.20	Subd. 3.State Patrol

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

20.22	Appropriations by Fund
	
20.23		2018
	2019
	
20.24	General
	5,787,000
	37,000
	
20.25	H.U.T.D.
	92,000
	92,000
	
20.26	Trunk Highway
	89,810,000
	93,194,000
	
20.27 	$5,750,000 from the general fund in the first 
20.28 	year is to purchase a helicopter for the State 
20.29 	Patrol. This is a onetime appropriation.
20.30 	From this appropriation, State Patrol trainee 
20.31 	salaries as provided under Minnesota Statutes, 
20.32 	section 299D.03, subdivision 6, must be 
20.33 	provided as follows: (1) for trainees in the Law 
20.34 	Enforcement Training Opportunity program, 
21.1 	80 percent of the basic salary for patrol 
21.2 	officers; and (2) for all other trainees, 100 
21.3 	percent of the basic salary.

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

21.5	(c) Capitol Security
		8,402,000
		8,537,000
	
21.6 	This appropriation is from the general fund.
21.7 	The commissioner must not:
21.8 	(1) spend any money from the trunk highway 
21.9 	fund for capitol security; or
21.10 	(2) permanently transfer any state trooper from 
21.11 	the patrolling highways activity to capitol 
21.12 	security.
21.13 	The commissioner must not transfer any 
21.14 	money appropriated to the commissioner under 
21.15 	this section:
21.16 	(1) to capitol security; or
21.17 	(2) from capitol security.

21.18	(d) Vehicle Crimes Unit
		761,000
		773,000
	
21.19 	This appropriation is from the highway user 
21.20 	tax distribution fund.
21.21 	This appropriation is to investigate:
21.22 	(1) registration tax and motor vehicle sales tax 
21.23 	liabilities from individuals and businesses that 
21.24 	currently do not pay all taxes owed; and
21.25 	(2) illegal or improper activity related to the 
21.26 	sale, transfer, titling, and registration of motor 
21.27 	vehicles.

21.28	Subd. 4.Driver and Vehicle Services

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

21.30	Appropriations by Fund
	
21.31		2018
	2019
	
22.1	Special Revenue
	22,509,000
	22,923,000
	
22.2	H.U.T.D.
	8,236,000
	8,236,000
	
22.3 	The special revenue fund appropriation is from 
22.4 	the vehicle services operating account.

22.5	(b) Driver Services
		32,014,000
		32,725,000
	
22.6 	This appropriation is from the driver services 
22.7 	operating account in the special revenue fund.
22.8 	$156,000 in each year is to maintain the 
22.9 	automated knowledge test system.

22.10
22.11	(c) Minnesota Licensing and Registration System 
(MNLARS)
		8,000,000
		8,000,000
	
22.12 	This appropriation is for operations and 
22.13 	maintenance of the driver and vehicle 
22.14 	information system known as the Minnesota 
22.15 	Licensing and Registration System.
22.16 	$1,000,000 in the first year and $5,265,000 in 
22.17 	the second year are from the driver services 
22.18 	operating account in the special revenue fund. 
22.19 	This is a onetime appropriation.
22.20 	$7,000,000 in the first year and $2,735,000 in 
22.21 	the second year are from the vehicle services 
22.22 	operating account in the special revenue fund. 
22.23 	This is a onetime appropriation.

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

22.25	Appropriations by Fund
	
22.26		2018
	2019
	
22.27	General
	470,000
	470,000
	
22.28	Trunk Highway
	471,000
	492,000
	
22.29 	The appropriation from the general fund in 
22.30 	each year is for maintenance of the crash 
22.31 	record system.

22.32	Subd. 6.Pipeline Safety
 		1,422,000
		1,439,000
	
23.1 	This appropriation is from the pipeline safety 
23.2 	account in the special revenue fund.

23.3 	Sec. 5. MINNESOTA RAIL SERVICE IMPROVEMENT ACCOUNT TRANSFER.
 23.4 	$3,500,000 in fiscal year 2018 is transferred from the general fund to the rail service 
23.5 	improvement account in the special revenue fund. This is a onetime transfer.

23.6 	Sec. 6. APPROPRIATION CANCELLATION.
 23.7 	$1,100,000 of the appropriation for port development assistance under Laws 2015, 
23.8 	chapter 75, article 1, section 3, subdivision 2, paragraph (e), is canceled to the general fund 
23.9 	on June 30, 2017.

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

23.11 	Sec. 7. APPROPRIATIONS BUDGET.
 23.12 	(a) In the budget submission to the legislature under Minnesota Statutes, section 16A.11, 
23.13 	for fiscal years 2020 and 2021, the commissioner of transportation, and the commissioner 
23.14 	of public safety with respect to the transportation portion of the public safety budget, must 
23.15 	present budget narratives and proposed appropriations for each appropriation established 
23.16 	in sections 2 and 4.
23.17 	(b) In the budget submission to the legislature under Minnesota Statutes, section 16A.11, 
23.18 	for fiscal years 2020 and 2021, the metropolitan council must present budget narratives and 
23.19 	the proposed appropriations, if any, for each of the following categories: metro mobility, 
23.20 	contracted bus service, regular route bus service, light rail transit, commuter rail, 
23.21 	transportation planning, and allocation to the regional administration.

23.22 	ARTICLE 2
23.23 	TRANSPORTATION BONDS

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

24.3	SUMMARY
	
24.4	Department of Transportation
	$
	600,000,000
	
24.5	Department of Management and Budget
		600,000
	
24.6	TOTAL
	$
	600,600,000

24.7						APPROPRIATIONS

24.8
24.9	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

24.10	Subdivision 1.Corridors of Commerce
 			$
	300,000,000
	
24.11 	This appropriation is to the commissioner of 
24.12 	transportation for the corridors of commerce 
24.13 	program under Minnesota Statutes, section 
24.14 	161.088.
24.15 	The commissioner may use up to 17 percent 
24.16 	of the amount each year for program delivery.

24.17	Subd. 2.State Road Construction
 			$
	300,000,000
	
24.18 	This appropriation is to the commissioner of 
24.19 	transportation for construction, reconstruction, 
24.20 	and improvement of trunk highways, including 
24.21 	design-build contracts and use of consultants 
24.22 	to support these activities. This includes the 
24.23 	cost of actual payment to landowners for lands 
24.24 	acquired for highway rights-of-way, payment 
24.25 	to lessees, interest subsidies, and relocation 
24.26 	expenses.
24.27 	This appropriation is available in fiscal year 
24.28 	2019.

24.29	Subd. 3.Cancellations
 					
24.30 	The appropriations in this section cancel as 
24.31 	specified under Minnesota Statutes, section 
24.32 	16A.642, except that the commissioner of 
24.33 	management and budget shall count the start 
25.1 	of authorization for issuance of state bonds as 
25.2 	the first day of the fiscal year during which 
25.3 	the bonds are available to be issued as 
25.4 	specified under subdivision 1 or 2, and not as 
25.5 	the date of enactment of this section.

25.6	Sec. 3. BOND SALE EXPENSES
 			$
	600,000
	
25.7 	This appropriation is to the commissioner of 
25.8 	management and budget for bond sale 
25.9 	expenses under Minnesota Statutes, sections 
25.10 	16A.641, subdivision 8, and 167.50, 
25.11 	subdivision 4, and is available in the amount 
25.12 	of $300,000 in each of fiscal years 2018 and 
25.13 	2019.

25.14	Sec. 4. BOND SALE AUTHORIZATION.
 					
25.15 	To provide the money appropriated in this article from the bond proceeds account in the 
25.16 	trunk highway fund, the commissioner of management and budget shall sell and issue bonds 
25.17 	of the state in an amount up to $600,600,000 in the manner, upon the terms, and with the 
25.18 	effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
25.19 	Constitution, article XIV, section 11, at the times and in the amounts requested by the 
25.20 	commissioner of transportation. The proceeds of the bonds, except accrued interest and any 
25.21 	premium received from the sale of the bonds, must be deposited in the bond proceeds account 
25.22 	in the trunk highway fund.

25.23 	Sec. 5. EFFECTIVE DATE.
 25.24 	This article is effective July 1, 2017.

25.25 	ARTICLE 3
25.26 	TRANSPORTATION POLICY AND FINANCE

25.27 	Section 1. Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:
25.28 		Subd. 3.Group II salary limits. The salary for a position listed in this subdivision shall 
25.29 	not exceed 120 percent of the salary of the governor. This limit must be adjusted annually 
25.30 	on January 1. The new limit must equal the limit for the prior year increased by the percentage 
25.31 	increase, if any, in the Consumer Price Index for all urban consumers from October of the 
26.1 	second prior year to October of the immediately prior year. The commissioner of management 
26.2 	and budget must publish the limit on the department's Web site. This subdivision applies 
26.3 	to the following positions:
26.4 	Executive director of Gambling Control Board;
26.5 	Commissioner, Iron Range Resources and Rehabilitation Board;
26.6 	Commissioner, Bureau of Mediation Services;
26.7 	Ombudsman for Mental Health and Developmental Disabilities;
26.8 	Chair, Metropolitan Council;
26.9 	School trust lands director;
26.10 	Executive director of pari-mutuel racing; and
26.11 	Commissioner, Public Utilities Commission.

26.12 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies in the 
26.13 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

26.14 	Sec. 2. Minnesota Statutes 2016, section 53C.01, subdivision 2, is amended to read:
26.15 		Subd. 2.Cash sale price. "Cash sale price" means the price at which the seller would 
26.16 	in good faith sell to the buyer, and the buyer would in good faith buy from the seller, the 
26.17 	motor vehicle which is the subject matter of the retail installment contract, if such sale were 
26.18 	a sale for cash, instead of a retail installment sale. The cash sale price may include any taxes, 
26.19 	charges for delivery, servicing, repairing, or improving the motor vehicle, including 
26.20 	accessories and their installation, and any other charges agreed upon between the parties. 
26.21 	The cash price may not include a documentary fee or document administration fee in excess 
26.22 	of $75 for services actually rendered to, for, or on behalf of, the retail buyer in preparing, 
26.23 	handling, and processing documents relating to the motor vehicle and the closing of the 
26.24 	retail sale authorized under section 168.27, subdivision 31. "Documentary fee" and "document 
26.25 	administration fee" do not include an optional electronic transfer fee as defined under 
26.26 	subdivision 14.

26.27 	Sec. 3. Minnesota Statutes 2016, section 85.016, is amended to read:
26.28 	85.016 BICYCLE TRAIL PROGRAM.
26.29 	The commissioner of natural resources shallmust establish a program for the development 
26.30 	of bicycle trails utilizing the state trails authorized by section 85.015, other state parks and 
27.1 	recreation land, and state forests. "Bicycle trail," as used in this section, has the meaning 
27.2 	given in section 169.011. The program shallmust be coordinated with the local park trail 
27.3 	grant program established by the commissioner pursuant to section 85.019, with the bikeway 
27.4 	program state bicycle routes established by the commissioner of transportation pursuant to 
27.5 	section 160.265 160.266, and with existing and proposed local bikeways. In the metropolitan 
27.6 	area as defined in section 473.121, the program shallmust be developed in accordance with 
27.7 	plans and priorities established by the Metropolitan Council. The commissioner shallmust 
27.8 	provide technical assistance to local units of government in planning and developing bicycle 
27.9 	trails in local parks. The bicycle trail program shall must, as a minimum, describe the 
27.10 	location, design, construction, maintenance, and land acquisition needs of each component 
27.11 	trail and shall give due consideration to the model standards for the establishment of 
27.12 	recreational vehicle lanes promulgated by the commissioner of transportation pursuant to 
27.13 	section 160.262. The program shallmust be developed after consultation with the state trail 
27.14 	council and regional and local units of government and bicyclist organizations.

27.15 	Sec. 4. Minnesota Statutes 2016, section 116.03, is amended by adding a subdivision to 
27.16 	read:
27.17 		Subd. 7.Clean Air Act settlement money. "Clean Air Act settlement money" means 
27.18 	money required to be paid to the state as a result of litigation or settlements of alleged 
27.19 	violations of the federal Clean Air Act, United States Code, title 42, section 7401, et seq., 
27.20 	or rules adopted thereunder, by an automobile manufacturer. The commissioner of 
27.21 	management and budget must establish the Clean Air Act settlement account in the 
27.22 	environmental fund. Notwithstanding sections 16A.013 to 16A.016, the commissioner of 
27.23 	management and budget must deposit Clean Air Act settlement money into the Clean Air 
27.24 	Act settlement account. Clean Air Act settlement money must not be spent until it is 
27.25 	specifically appropriated by law. The commissioner of management and budget must 
27.26 	eliminate the Clean Air Act settlement account in the environmental fund after all Clean 
27.27 	Air Act settlement money has been expended.

27.28 	Sec. 5. Minnesota Statutes 2016, section 117.189, is amended to read:
27.29 	117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.
27.30 	(a) Sections 117.031; 117.036; 117.055, subdivision 2, paragraph (b); 117.186; 117.187; 
27.31 	117.188; and 117.52, subdivisions 1a and 4, do not apply to the use of eminent domain 
27.32 	authority by public service corporations for any purpose other than construction or expansion 
27.33 	of:
28.1 	(1) a high-voltage transmission line of 100 kilovolts or more, or ancillary substations; 
28.2 	or
28.3 	(2) a natural gas, petroleum, or petroleum products pipeline, or ancillary compressor 
28.4 	stations or pumping stations.; or
28.5 	(3) a light rail transit or bus rapid transit line.
28.6 	(b) For purposes of an award of appraisal fees under section 117.085, the fees awarded 
28.7 	may not exceed $1,500 for all types of property except for a public service corporation's 
28.8 	use of eminent domain for:
28.9 	(1) a high-voltage transmission line, where the award may not exceed $3,000; and
28.10 	(2) a light rail transit or bus rapid transit line, where the award shall be as provided in 
28.11 	section 117.085.
28.12 	(c) For purposes of this section, "pipeline" does not include a natural gas distribution 
28.13 	line transporting gas to an end user.

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

28.15 	Sec. 6. Minnesota Statutes 2016, section 160.02, is amended by adding a subdivision to 
28.16 	read:
28.17 		Subd. 1a.Bikeway. "Bikeway" means a bicycle lane, bicycle path, shared use path, 
28.18 	bicycle route, or similar bicycle facility, regardless of whether designed for the exclusive 
28.19 	use of bicycles or for shared use with other transportation modes.

28.20 	Sec. 7. Minnesota Statutes 2016, section 160.02, subdivision 27, is amended to read:
28.21 		Subd. 27.Roadway; bicycle lane; bicycle route; bicycle path; bikeway. The terms 
28.22 	"roadway," "bicycle lane," "bicycle route," and "bicycle path," and "bikeway" have the 
28.23 	meanings given in section 169.011.

28.24 	Sec. 8. Minnesota Statutes 2016, section 160.02, is amended by adding a subdivision to 
28.25 	read:
28.26 		Subd. 27a.Shared use path. "Shared use path" means a bicycle facility that is (1) 
28.27 	physically separated from motorized vehicular traffic by an open space or barrier, (2) located 
28.28 	within either the highway right-of-way or an independent right-of-way, and (3) available 
28.29 	for use by other nonmotorized users.

29.1 	Sec. 9. Minnesota Statutes 2016, section 160.18, is amended by adding a subdivision to 
29.2 	read:
29.3 		Subd. 4.Trunk highway appeal process. If the commissioner denies or revokes a trunk 
29.4 	highway access permit, the property owner or occupant must be notified of the denial or 
29.5 	revocation in writing within ten days of the denial or revocation. Within 30 days of receiving 
29.6 	the notice of denial or revocation, the property owner or occupant may appeal the 
29.7 	commissioner's action in a contested case proceeding under chapter 14. Notwithstanding 
29.8 	section 14.61, the report or order of the administrative law judge constitutes the final decision.

29.9 	Sec. 10. Minnesota Statutes 2016, section 160.262, subdivision 1, is amended to read:
29.10 		Subdivision 1.Model standards Bikeways; powers and duties; design guidelines.
 29.11 	(a) The legislature determines that it is in the interests of the public health, safety and welfare, 
29.12 	to provide for the addition of bicycle and recreational vehicle lanes bikeways to proposed 
29.13 	and existing public highways. The commissioner of transportation shall adopt, in the manner 
29.14 	provided in chapter 14, model standards for the establishment of recreational vehicle lanes 
29.15 	on and along proposed and existing public highways. The model standards shall include 
29.16 	but not be limited to the following: (a) criteria for desirability of a lane in any given location, 
29.17 	(b) provision for maintenance of the lanes, and (c) the placement of the lanes in relation to 
29.18 	roads. The model standards shall govern state trunk highways. The commissioner of 
29.19 	transportation is authorized to plan, design, establish, and maintain bikeways on the 
29.20 	right-of-way of any trunk highway. The commissioner is responsible for the design and 
29.21 	construction of all bikeway projects within the right-of-way of any trunk highway. The 
29.22 	commissioner must consider the development of bikeways during the planning, design, 
29.23 	construction, reconstruction, or improvement of any trunk highway, or allow the 
29.24 	establishment of such bikeways within trunk highway right-of-way.
29.25 	(b) The commissioner must maintain bikeway design guidelines consistent with the state 
29.26 	transportation goals in section 174.01.
29.27 	(c) The commissioner must compile and maintain a map of bikeways in the state and 
29.28 	must publish and distribute the map's information at least once every two years in a form 
29.29 	and manner suitable to assist persons wishing to use the bikeways.
29.30 	(d) The commissioner must maintain bikeways within the limits of trunk highway 
29.31 	right-of-way unless a written agreement or limited use permit provides otherwise.

30.1 	Sec. 11. Minnesota Statutes 2016, section 160.262, subdivision 3, is amended to read:
30.2 		Subd. 3.Cooperation among agencies and governments. The following departments 
30.3 	and agencies shall cooperate in providing on the nonmotorized transportation advisory 
30.4 	committee identified in section 174.37 must provide information and advice for amendments 
30.5 	to the model standards the bikeway design guidelines maintained by the commissioner of 
30.6 	transportation: the Departments of Agriculture, Transportation, Natural Resources, 
30.7 	Commerce, and Employment and Economic Development, and the Board of Water and Soil 
30.8 	Resources. The commissioner may cooperate with and enter into agreements with the United 
30.9 	States government, any department of the state of Minnesota, any unit of local government 
30.10 	and, any tribal government, or any public or private corporation in order to effect the purposes 
30.11 	of this section.

30.12 	Sec. 12. Minnesota Statutes 2016, section 160.262, subdivision 4, is amended to read:
30.13 		Subd. 4.Design-build bridges for nonmotorized vehicles. For streets and highways, 
30.14 	the commissioner shallmust allow for the acceptance of performance-specification bids, 
30.15 	made by the lowest responsible bidder, for constructing design-build bridges for bicycle 
30.16 	paths, bicycle trails, bikeways and pedestrian facilities that are:
30.17 	(1) designed and used primarily for nonmotorized transportation, but may allow for 
30.18 	motorized wheelchairs, golf carts, necessary maintenance vehicles and, when otherwise 
30.19 	permitted by law, rule, or ordinance, snowmobiles; and
30.20 	(2) located apart from any road or highway or protected by barriers, provided that a 
30.21 	design-built bridge may cross over and above a road or highway.

30.22 	Sec. 13. Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision 
30.23 	to read:
30.24 		Subd. 1a.State bicycle route; definition. For the purposes of this section, "state bicycle 
30.25 	route" means a linear series of one or more roads or bikeways that is designated for bicycle 
30.26 	travel, regardless of whether for exclusive use by bicycles or shared use with other modes 
30.27 	of transportation.

30.28 	Sec. 14. Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision 
30.29 	to read:
30.30 		Subd. 1b.State bicycle routes. The commissioner of transportation must identify state 
30.31 	bicycle routes primarily on existing road right-of-way and trails. State bicycle routes must 
30.32 	be identified in cooperation with road and trail authorities, including the commissioner of 
31.1 	natural resources, and with the advice of the advisory committee on nonmotorized 
31.2 	transportation under section 174.37. In a metropolitan area, state bicycle routes must be 
31.3 	identified in coordination with the plans and priorities established by metropolitan planning 
31.4 	organizations, as defined in United States Code, title 23, section 134.

31.5 	Sec. 15. Minnesota Statutes 2016, section 160.266, subdivision 3, is amended to read:
31.6 		Subd. 3.Connections with other bikeways. (a) The commissioner, in cooperation with 
31.7 	road and trail authorities including the commissioner of natural resources, shall must:
31.8 	(1) identify existing bikeways of regional significance that are in reasonable proximity 
31.9 	but not connected to the bikeway state bicycle routes established in under this section, 
31.10 	including but not limited to the Lake Wobegon Trail in the counties of Stearns and Todd; 
31.11 	and
31.12 	(2) support development of linkages between bikeways identified under clause (1) and 
31.13 	the bikeway state bicycle routes established in under this section.
31.14 	(b) The requirements of this subdivision are a secondary priority for use of funds available 
31.15 	under this section following establishment and enhancement of the bikewaystate bicycle 
31.16 	routes under subdivision 1 this section.

31.17 	Sec. 16. Minnesota Statutes 2016, section 160.266, subdivision 4, is amended to read:
31.18 		Subd. 4.Cooperation with other entities. The commissioner may contract and enter 
31.19 	into agreements with federal agencies, other state agencies, local governments, andtribal 
31.20 	governments, or private entities to establish, develop, maintain, and operate the bikeway
31.21 	state bicycle routes and to interpret associated natural and cultural resources.

31.22 	Sec. 17. Minnesota Statutes 2016, section 160.266, subdivision 5, is amended to read:
31.23 		Subd. 5.Funding. Bicycle Shared use paths included within the bikeway state bicycle 
31.24 	routes and not administered by the commissioner of natural resources are eligible for funding 
31.25 	from the environment and natural resources trust fund under chapter 116P, from the parks 
31.26 	and trails grant program under section 85.535, from the local recreation grants program 
31.27 	under section 85.019, subdivision 4b, and from other sources.

32.1 	Sec. 18. Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision 
32.2 	to read:
32.3 		Subd. 6.Mississippi River Trail. The Mississippi River Trail bikeway must originate 
32.4 	at Itasca State Park in Clearwater, Beltrami, and Hubbard Counties, then generally parallel 
32.5 	the Mississippi River through the cities of Bemidji in Beltrami County, Grand Rapids in 
32.6 	Itasca County, Brainerd in Crow Wing County, Little Falls in Morrison County, Sauk Rapids 
32.7 	in Benton County, St. Cloud in Stearns County, Minneapolis in Hennepin County, St. Paul 
32.8 	in Ramsey County, Hastings in Dakota County, Red Wing in Goodhue County, Wabasha 
32.9 	in Wabasha County, Winona in Winona County, and La Crescent in Houston County to 
32.10 	Minnesota's boundary with Iowa and there terminate. Where opportunities exist, the bikeway 
32.11 	may be designated on both sides of the Mississippi River.

32.12 	Sec. 19. [160.801] HIGHWAY SPONSORSHIP PROGRAM.
32.13 		Subdivision 1.Sponsorship program. (a) The commissioner is authorized to establish 
32.14 	a program designed to encourage businesses, civic groups, or individuals to voluntarily 
32.15 	assist with the improvement and maintenance of real property comprising the trunk highway 
32.16 	system, including bicycle and pedestrian trails, roadside monuments, and historic sites.
32.17 	(b) All support provided by volunteers or vendors must be carried out in a manner 
32.18 	consistent with construction and maintenance plans approved by the commissioner after 
32.19 	consultation with the volunteers.
32.20 	(c) The commissioner may provide assistance to (1) enhance volunteer safety, and (2) 
32.21 	facilitate the implementation and administration of the sponsorship program.
32.22 		Subd. 2.Agreements. The commissioner may enter into volunteer agreements with 
32.23 	businesses, civic groups, or individuals to support, maintain, and make improvements to 
32.24 	real property included in the trunk highway system. Agreements under this section are not 
32.25 	subject to section 161.32.
32.26 		Subd. 3.Support activities. (a) The volunteer support activities include but are not 
32.27 	limited to:
32.28 	(1) work to create, protect, and enhance pollinator habitat along highway rights-of-way;
32.29 	(2) work to pick up litter along roadsides;
32.30 	(3) work to install enhancements, including landscaping materials, on trunk highway 
32.31 	property;
32.32 	(4) financial support provided to the department for specific roadside improvements;
33.1 	(5) financial support consisting of the sponsor hiring a professional landscape contractor 
33.2 	to install vegetation, maintain landscape plantings, or pick up litter, or for other similar 
33.3 	activities along a selected area of highway right-of-way; or
33.4 	(6) installation of features that enhance the aesthetics of trunk highway property or the 
33.5 	amenities available to highway users.
33.6 	(b) All volunteer support activities must have prior commissioner approval.
33.7 		Subd. 4.Acknowledgment of sponsors. The commissioner may erect signs to publicly 
33.8 	recognize and express appreciation to businesses, civic groups, and individuals that provide 
33.9 	volunteer funding or services under the sponsorship program.
33.10 		Subd. 5.Highway sponsorship program account; appropriation. Funds received 
33.11 	under this section must be deposited in the highway sponsorship program account, which 
33.12 	is created in the special revenue fund. The account consists of funds as provided by law, 
33.13 	and any other money donated, allotted, transferred, or otherwise provided to the account. 
33.14 	Funds in the account are annually appropriated to the commissioner for the purpose specified 
33.15 	in the volunteer agreement.
33.16 		Subd. 6.Prohibition. The commissioner must not take action under this section that 
33.17 	would result in the loss of federal highway funds or require payment of highway funds to 
33.18 	the federal government.

33.19 	Sec. 20. Minnesota Statutes 2016, section 161.04, subdivision 5, is amended to read:
33.20 		Subd. 5.Trunk highway emergency relief account. (a) The trunk highway emergency 
33.21 	relief account is created in the trunk highway fund. Money in the account is appropriated 
33.22 	to the commissioner to be used to fund relief activities related to an emergency, as defined 
33.23 	in section 161.32, subdivision 3, or under section 12A.16, subdivision 1.
33.24 	(b) Reimbursements by the Federal Highway Administration for emergency relief 
33.25 	payments made from the trunk highway emergency relief account must be credited to the 
33.26 	account. Notwithstanding section 16A.28, money in the account is available until spent. If 
33.27 	the balance of the account at the end of a fiscal year is greater than $10,000,000, the amount 
33.28 	above $10,000,000 must be canceled to the trunk highway fund.
33.29 	(c) By September 1, 2012, and in every subsequent even-numbered year by September 
33.30 	1, the commissioner shall submit a report to the chairs and ranking minority members of 
33.31 	the senate and house of representatives committees having jurisdiction over transportation 
33.32 	policy and finance. The report must include the balance, as well as details of payments made 
33.33 	from and deposits made to the trunk highway emergency relief account since the last report.

34.1 	Sec. 21. Minnesota Statutes 2016, section 161.081, subdivision 3, is amended to read:
34.2 		Subd. 3.Flexible highway account; turnback accounts. (a) The flexible highway 
34.3 	account is created in the state treasury. Money in the account shall be used must be allocated 
34.4 	as follows:
34.5 	(1) in fiscal years 2009 and 2010, 100 percent of the excess sum, as calculated in 
34.6 	paragraph (i), and in fiscal years 2011 and thereafter, 50 16 percent of the excess sum, as 
34.7 	calculated in paragraph (i), amount available in the flexible highway account for counties 
34.8 	in the metropolitan area, as defined in section 473.121, subdivision 4, but for the purposes 
34.9 	of the calculation cities of the first class will be excluded in the metropolitan area distributed 
34.10 	proportionally based on the most recent estimate of county population excluding the 
34.11 	population of any city of the first class; and
34.12 	(2) of the amount available in the flexible highway account less the amount under clause 
34.13 	(1), as determined by the commissioner under this section for:
34.14 	(i) restoration of former trunk highways that have reverted to counties or to statutory or 
34.15 	home rule charter cities, or for trunk highways that will be restored and subsequently turned 
34.16 	back by agreement between the commissioner and the local road authority;
34.17 	(ii) safety improvements on county highways, municipal highways, streets, or town 
34.18 	roads; and
34.19 	(iii) routes of regional significance.
34.20 	(b) For purposes of this subdivision, "restoration" means the level of effort required to 
34.21 	improve the route that will be turned back to an acceptable condition as determined by 
34.22 	agreement made between the commissioner and the county or city before the route is turned 
34.23 	back.
34.24 	(c) The commissioner shall review the need for funds to restore highways that have been 
34.25 	or will be turned back. The commissioner shall determine, on a biennial basis, the percentage 
34.26 	of funds in the flexible highway account to be distributed to each district, and within each 
34.27 	district the percentage to be used for each of the purposes specified in paragraph (a). Money 
34.28 	in the account may be used for safety improvements and routes of regional significance 
34.29 	only after money is set aside to restore the identified turnbacks. The commissioner shall 
34.30 	make these determinations only after meeting and holding discussions with committees 
34.31 	selected by the statewide associations of both county commissioners and municipal officials. 
34.32 	The commissioner shall, to the extent feasible, annually allocate 50 percent of the funds in 
35.1 	the flexible highway account to the department's metropolitan district, and 50 percent to 
35.2 	districts in greater Minnesota.
35.3 	(d) Money that will be used for the restoration of trunk highways that have reverted or 
35.4 	that will revert to cities must be deposited in the municipal turnback account, which is 
35.5 	created in the state treasury.
35.6 	(e) Money that will be used for the restoration of trunk highways that have reverted or 
35.7 	that will revert to counties must be deposited in the county turnback account, which is 
35.8 	created in the state treasury.
35.9 	(f) Money that will be used for safety improvements must be deposited in the highway 
35.10 	safety improvement account, which is created in the state treasury to be used as grants to 
35.11 	statutory or home rule charter cities, towns, and counties to assist in paying the costs of 
35.12 	constructing or reconstructing city streets, county highways, or town roads to reduce crashes, 
35.13 	deaths, injuries, and property damage.
35.14 	(g) Money that will be used for routes of regional significance must be deposited in the 
35.15 	routes of regional significance account, which is created in the state treasury, and used as 
35.16 	grants to statutory or home rule charter cities, towns, and counties to assist in paying the 
35.17 	costs of constructing or reconstructing city streets, county highways, or town roads with 
35.18 	statewide or regional significance that have not been fully funded through other state, federal, 
35.19 	or local funding sources.
35.20 	(h) As part of each biennial budget submission to the legislature, the commissioner shall 
35.21 	describe how the money in the flexible highway account will be apportioned among the 
35.22 	county turnback account, the municipal turnback account, the trunk highway fund for routes 
35.23 	turned back to local governments by agreement, the highway safety improvement account, 
35.24 	and the routes of regional significance account.
35.25 	(i) The excess sum is calculated as the sum of revenue within the flexible highway 
35.26 	account:
35.27 	(1) attributed to that portion of the gasoline excise tax rate under section 296A.07, 
35.28 	subdivision 3, in excess of 20 cents per gallon, and to that portion of the excise tax rates in 
35.29 	excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon for E85 
35.30 	and M85 under section 296A.07, subdivision 3, and special fuel under section 296A.08, 
35.31 	subdivision 2;
35.32 	(2) attributed to a change in the passenger vehicle registration tax under section 168.013, 
35.33 	imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal year 2008, 
36.1 	multiplied by (ii) the annual average United States Consumer Price Index for the calendar 
36.2 	year previous to the current calendar year, divided by the annual average United States 
36.3 	Consumer Price Index for calendar year 2007; and
36.4 	(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the 
36.5 	percentage allocated to the flexible highway account in fiscal year 2007.
36.6 	(j) For purposes of this subdivision, the United States Consumer Price Index identified 
36.7 	in paragraph (i), clause (2), is for all urban consumers, United States city average, as 
36.8 	determined by the United States Department of Labor.

36.9 	Sec. 22. Minnesota Statutes 2016, section 161.088, subdivision 4, is amended to read:
36.10 		Subd. 4.Project eligibility. (a) The commissioner shall establish eligibility requirements 
36.11 	for projects that can be funded under the program. Eligibility must include are:
36.12 	(1) consistency with the statewide multimodal transportation plan under section 174.03;
36.13 	(2) location of the project on an interregional corridor, for a project located outside of 
36.14 	the Department of Transportation metropolitan district;
36.15 	(3) placement into at least one project classification under subdivision 3;
36.16 	(4) a maximum project construction work will commence within three years, or a longer
36.17 	length of time, as determined by the commissioner, until commencement of construction 
36.18 	work on the project; and
36.19 	(5) for each type of project classification under subdivision 3, a maximum allowable 
36.20 	amount for the total project cost estimate, as determined by the commissioner with available 
36.21 	data.
36.22 	(b) A project whose construction is programmed in the state transportation improvement 
36.23 	program is not eligible for funding under the program. This paragraph does not apply to a 
36.24 	project that is programmed as result of selection under this section.
36.25 	(c) A project may be, but is not required to be, identified in the 20-year state highway 
36.26 	capital investment plan under section 174.03.
36.27 	(d) For each project, the commissioner must consider all of the eligibility requirements 
36.28 	under paragraph (a). The commissioner is prohibited from considering any eligibility 
36.29 	requirement not specified under paragraph (a).

37.1 	Sec. 23. Minnesota Statutes 2016, section 161.088, subdivision 5, is amended to read:
37.2 		Subd. 5.Project selection process; criteria. (a) The commissioner shallmust establish 
37.3 	a process for identification, evaluation, and selection of to identify, evaluate, and select
37.4 	projects under the program. The process must be consistent with the requirements of this 
37.5 	subdivision and must not include any additional evaluation criteria.
37.6 	(b) As part of the project selection process, the commissioner shallmust annually accept 
37.7 	recommendations on candidate projects from area transportation partnerships and other 
37.8 	interested stakeholders in each Department of Transportation district. The commissioner 
37.9 	must determine the eligibility for each candidate project identified under this paragraph, 
37.10 	the commissioner shall determine eligibility, classify, and if appropriate, evaluate the project 
37.11 	for the program. For each eligible project, the commissioner must classify and evaluate the 
37.12 	project for the program, using all of the criteria established under paragraph (c).
37.13 	(c) Project evaluation and prioritization must be performed on the basis of objective 
37.14 	criteria, which must include Projects must be evaluated using all of the following criteria:
37.15 	(1) a return on investment measure that provides for comparison across eligible projects;
37.16 	(2) measurable impacts on commerce and economic competitiveness;
37.17 	(3) efficiency in the movement of freight, including but not limited to:
37.18 	(i) measures of annual average daily traffic and commercial vehicle miles traveled, which 
37.19 	may include data near the project location on that trunk highway or on connecting trunk 
37.20 	and local highways; and
37.21 	(ii) measures of congestion or travel time reliability, which may be within or near the 
37.22 	project limits, or both;
37.23 	(4) improvements to traffic safety;
37.24 	(5) connections to regional trade centers, local highway systems, and other transportation 
37.25 	modes;
37.26 	(6) the extent to which the project addresses multiple transportation system policy 
37.27 	objectives and principles; and
37.28 	(7) support and consensus for the project among members of the surrounding community; 
37.29 	and
37.30 	(8) regional balance throughout the state.
38.1 	(d) The list of all projects evaluated must be made public and must include the score of 
38.2 	each project.
38.3 	(e) As part of the project selection process, the commissioner may divide funding to be 
38.4 	separately available among projects within each classification under subdivision 3, and may 
38.5 	apply separate or modified criteria among those projects falling within each classification.

38.6 	Sec. 24. Minnesota Statutes 2016, section 161.088, subdivision 7, is amended to read:
38.7 		Subd. 7.Legislative report; evaluation. (a) Starting in 2014, Annually by November 
38.8 	1, the commissioner shall must electronically submit a report on the corridors of commerce 
38.9 	program to the chairs and ranking minority members of the legislative committees with 
38.10 	jurisdiction over transportation policy and finance. At a minimum, the report must include:
38.11 	(1) a summary of the program, including a review of the:
38.12 	(i) project selection process details that address program design and implementation, 
38.13 	decision-making procedures, and eligibility and criteria, evaluation;
38.14 	(ii) criteria measurement methodologies and criteria weighting used in project selection; 
38.15 	and
38.16 	(iii) the policy that provides the weight given each criterion;
38.17 	(2) a summary of program finance, including funds expended in the previous selection 
38.18 	cycle, any future operating costs assigned under subdivision 6, and total funds expended 
38.19 	since program inception;
38.20 	(2) (3) a listing list of projects funded under the program in the previous selection cycle, 
38.21 	including:
38.22 	(i) project classification;
38.23 	(ii) a breakdown of project costs and funding sources; and
38.24 	(iii) any future operating costs assigned under subdivision 6; and
38.25 	(iv) a brief project description that is comprehensible to a lay audience;
38.26 	(3) (4) a listing comprehensive list of evaluated projects and candidate project 
38.27 	recommendations as required under subdivision 5, paragraph (b), including that identifies 
38.28 	for each project: eligibility, classification, evaluation results for each criterion, score, and 
38.29 	disposition in the selection process; and
38.30 	(4) (5) any recommendations for changes to statutory requirements of the program.
39.1 	(b) Starting in 2016, and In every even-numbered year thereafter, the commissioner 
39.2 	shall must incorporate into the report the results of an independent evaluation of impacts 
39.3 	and effectiveness of the program. The evaluation must be performed by agency staff or a 
39.4 	consultant. The individual or individuals performing the evaluation must have experience 
39.5 	in program evaluation, but must not be regularly involved in the program's implementation.
39.6 	(c) Notwithstanding paragraph (a), a report is not required in a year in which:
39.7 	(1) no project selection was completed during the preceding 12 months; and
39.8 	(2) an evaluation under paragraph (b) is not due.

39.9 	Sec. 25. Minnesota Statutes 2016, section 161.115, subdivision 190, is amended to read:
39.10 		Subd. 190.Route No. 259. Beginning at a point on Statutory Route No. 100, at or near 
39.11 	Henderson; thence extending in a general southeasterly direction to a point on Statutory 
39.12 	Route No. 123, at or near Le Sueur.

39.13 	EFFECTIVE DATE. This section is effective the day after the commissioner of 
39.14 	transportation receives a copy of the agreement between the commissioner of transportation 
39.15 	and the governing body of Le Sueur County to transfer jurisdiction of Legislative Route 
39.16 	No. 123 and after the commissioner notifies the revisor of statutes under section 145, 
39.17 	paragraph (b).

39.18 	Sec. 26. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
39.19 	read:
39.20 		Subd. 83.Chip A. Imker Memorial Highway. That segment of marked Trunk Highway 
39.21 	65 from Isanti County State-Aid Highway 19, known as 305th Avenue NE, to the northerly 
39.22 	limit of Cambridge Township is designated as "Chip A. Imker Memorial Highway." Subject 
39.23 	to section 161.139, the commissioner shall adopt a suitable design to mark this highway 
39.24 	and erect appropriate signs.

39.25 	Sec. 27. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
39.26 	read:
39.27 		Subd. 84.Medal of Honor Recipient Kenneth L. Olson Highway. That segment of 
39.28 	marked Trunk Highway 23 within the city of Paynesville and the town of Paynesville is 
39.29 	designated as "Medal of Honor Recipient Kenneth L. Olson Highway." Subject to section 
39.30 	161.139, the commissioner shall adopt a suitable design to mark this highway and erect 
39.31 	appropriate signs.

40.1 	Sec. 28. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
40.2 	read:
40.3 		Subd. 85.Corporal Benjamin S. Kopp Bridge. The bridge on Dakota County State-Aid 
40.4 	Highway 46, known as Brandel Drive within the city of Coates, over marked U.S. Highway 
40.5 	52 is designated as "Corporal Benjamin S. Kopp Bridge." Subject to section 161.139, the 
40.6 	commissioner shall adopt a suitable design to mark this highway and erect appropriate signs.

40.7 	Sec. 29. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
40.8 	read:
40.9 		Subd. 86.Senator Jim Metzen Memorial Highway. That segment of marked U.S. 
40.10 	Highway 52 located within Dakota County is designated as "Senator Jim Metzen Memorial 
40.11 	Highway." Notwithstanding section 161.139, the commissioner shall adopt a suitable design 
40.12 	to mark this highway and erect appropriate signs.

40.13 	Sec. 30. Minnesota Statutes 2016, section 161.21, subdivision 1, is amended to read:
40.14 		Subdivision 1.Location and design of highways. The commissioner may make or 
40.15 	cause to be made such studies and investigations as the commissioner deems necessary for 
40.16 	the purpose of determining the most advantageous location and design of trunk highways 
40.17 	from the standpoint of both present and future traffic needs, and in making such 
40.18 	determinations the commissioner may take into consideration the probable future 
40.19 	development of both urban and rural areas and the effect of such development on future 
40.20 	traffic needs as indicated by such studies and investigations and the location and design 
40.21 	with respect to recreational vehicle lane bikeway establishment.

40.22 	Sec. 31. Minnesota Statutes 2016, section 161.321, subdivision 6, is amended to read:
40.23 		Subd. 6.Rules; eligibility. (a) The rules adopted by the commissioner of administration 
40.24 	to define small businesses and to set time and other eligibility requirements for participation 
40.25 	in programs under sections 16C.16 to 16C.19 apply to this section. The commissioner may 
40.26 	promulgate other rules necessary to carry out this section.
40.27 	(b) In addition to other eligibility requirements, a small targeted group business or 
40.28 	veteran-owned small business is eligible for the bid preferences under this section only for 
40.29 	eight years following the latest of:
40.30 	(1) May 1, 2012;
41.1 	(2) for a targeted group business, the date of initial certification by the commissioner of 
41.2 	administration, as provided under section 16C.19;
41.3 	(3) for a veteran-owned small business, the date of initial certification by the United 
41.4 	States Department of Veterans Affairs, as provided under section 16C.19, paragraph (d); 
41.5 	or
41.6 	(4) for a veteran-owned small business, the release or discharge of any one of the owners 
41.7 	from military active service, as defined in section 190.05, subdivision 5, lasting for a period 
41.8 	of 179 days or longer.

41.9 	Sec. 32. Minnesota Statutes 2016, section 161.38, is amended by adding a subdivision to 
41.10 	read:
41.11 		Subd. 8.Spending on trunk highway system. The commissioner must maintain 
41.12 	information on expenditures by local road authorities from local funding sources for trunk 
41.13 	highway system projects.

41.14 	Sec. 33. Minnesota Statutes 2016, section 161.44, subdivision 5, is amended to read:
41.15 		Subd. 5.Conveyance to highest bidder in certain cases. If the larger tract has been 
41.16 	platted into lots or divided into smaller tracts and the commissioner elects to proceed under 
41.17 	this subdivision, or if the lands constituted an entire tract and the person from whom the 
41.18 	lands were acquired and the person's spouse are deceased, or if the offers as provided for 
41.19 	are not accepted and the amount of money not tendered within the time prescribed, the lands 
41.20 	may be sold and conveyed to the owner of the land abutting upon the lands in the same 
41.21 	manner and under the same terms provided under subdivision 2, or the commissioner may 
41.22 	sell the lands to the highest responsible bidder upon three weeks' published notice of such 
41.23 	sale in a newspaper or other periodical of general circulation in the general area where the 
41.24 	lands are located. All bids may be rejected and new bids received upon like advertisement.

41.25 	Sec. 34. Minnesota Statutes 2016, section 161.44, subdivision 6a, is amended to read:
41.26 		Subd. 6a.Services of licensed real estate broker. If the lands remain unsold after being 
41.27 	offered for sale to the highest bidder are withdrawn from sale under subdivision 6b, the 
41.28 	commissioner may retain the services of a licensed real estate broker to find a buyer. The 
41.29 	sale price may be negotiated by the broker, but must not be less than 90 percent of the 
41.30 	appraised market value as determined by the commissioner. The broker's fee must be 
41.31 	established by prior agreement between the commissioner and the broker, and must not 
42.1 	exceed ten percent of the sale price for sales of $10,000 or more. The broker's fee must be 
42.2 	paid to the broker from the proceeds of the sale.

42.3 	Sec. 35. Minnesota Statutes 2016, section 161.44, is amended by adding a subdivision to 
42.4 	read:
42.5 		Subd. 6b.Unsold lands. If lands remain unsold after being offered for sale to the highest 
42.6 	bidder, the commissioner may offer the remaining lands to any person who agrees to pay 
42.7 	the minimum bid established for the public sale. The sale must continue until all eligible 
42.8 	lands have been sold or the commissioner withdraws the remaining lands from sale. The 
42.9 	lands to be sold must be listed on the department's Unsold Property Inventory list.

42.10 	Sec. 36. Minnesota Statutes 2016, section 168.013, subdivision 1a, is amended to read:
42.11 		Subd. 1a.Passenger automobile; hearse. (a) On passenger automobiles as defined in 
42.12 	section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax shall be
42.13 	is $10 plus an additional tax equal to 1.25 percent of the base value.
42.14 	(b) Subject to the classification provisions herein, "base value" means the manufacturer's 
42.15 	suggested retail price of the vehicle including destination charge using list price information 
42.16 	published by the manufacturer or determined by the registrar if no suggested retail price 
42.17 	exists, and shall not include the cost of each accessory or item of optional equipment 
42.18 	separately added to the vehicle and the suggested retail price.
42.19 	(c) If the manufacturer's list price information contains a single vehicle identification 
42.20 	number followed by various descriptions and suggested retail prices, the registrar shall 
42.21 	select from those listings only the lowest price for determining base value.
42.22 	(d) If unable to determine the base value because the vehicle is specially constructed, 
42.23 	or for any other reason, the registrar may establish such value upon the cost price to the 
42.24 	purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales 
42.25 	or use tax or any local sales or other local tax.
42.26 	(e) The registrar shall classify every vehicle in its proper base value class as follows:

42.27	FROM
		TO
	
42.28	$
	0
		$ 199.99
	
42.29	$
	200
		$ 399.99
	
42.30 	and thereafter a series of classes successively set in brackets having a spread of $200 
42.31 	consisting of such number of classes as will permit classification of all vehicles.
43.1 	(f) The base value for purposes of this section shall be the middle point between the 
43.2 	extremes of its class.
43.3 	(g) The registrar shall establish the base value, when new, of every passenger automobile 
43.4 	and hearse registered prior to the effective date of Extra Session Laws 1971, chapter 31, 
43.5 	using list price information published by the manufacturer or any nationally recognized 
43.6 	firm or association compiling such data for the automotive industry. If unable to ascertain 
43.7 	the base value of any registered vehicle in the foregoing manner, the registrar may use any 
43.8 	other available source or method. The registrar shall calculate tax using base value 
43.9 	information available to dealers and deputy registrars at the time the application for 
43.10 	registration is submitted. The tax on all previously registered vehicles shall be computed 
43.11 	upon the base value thus determined taking into account the depreciation provisions of 
43.12 	paragraph (h).
43.13 	(h) The annual additional tax must be computed upon a percentage of the base value as 
43.14 	follows: during the first year of vehicle life, upon 100 percent of the base value; for the 
43.15 	second year, 90 percent of such value; for the third year, 80 percent of such value; for the 
43.16 	fourth year, 70 percent of such value; for the fifth year, 60 percent of such value; for the 
43.17 	sixth year, 50 percent of such value; for the seventh year, 40 percent of such value; for the 
43.18 	eighth year, 30 percent of such value; for the ninth year, 20 percent of such value; for the 
43.19 	tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.
43.20 	(i) In no event shall the annual additional tax be less than $25.
43.21 	(j) For any vehicle previously registered in Minnesota and regardless of prior ownership, 
43.22 	the annual additional tax total amount due under this subdivision and subdivision 1m must 
43.23 	not exceed the smallest total amount of annual additional tax previously paid or due on the 
43.24 	vehicle.

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

43.27 	Sec. 37. Minnesota Statutes 2016, section 168.013, is amended by adding a subdivision 
43.28 	to read:
43.29 		Subd. 1m.Electric vehicle. In addition to the tax under subdivision 1a, a surcharge of 
43.30 	$75 is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a. 
43.31 	Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision must 
43.32 	be deposited in the highway user tax distribution fund.

44.1 	EFFECTIVE DATE. This section is effective the day following final enactment, and 
44.2 	applies to a registration period starting on or after January 1, 2018.

44.3 	Sec. 38. Minnesota Statutes 2016, section 168.021, subdivision 1, is amended to read:
44.4 		Subdivision 1.Disability plates; application. (a) When a motor vehicle registered under 
44.5 	section 168.017, a motorcycle, a motorized bicycle, a one-ton pickup truck, or a self-propelled 
44.6 	recreational vehicle is owned or primarily operated by a permanently physically disabled 
44.7 	person or a custodial parent or guardian of a permanently physically disabled minor person, 
44.8 	the owner may apply for and secure from the commissioner (1) immediately, a temporary 
44.9 	permit valid for 30 days if the applicant is eligible for the disability plates issued under this 
44.10 	section and (2) two disability plates with attached emblems, one plate to be attached to the 
44.11 	front, and one to the rear of the motor vehicle, truck, or recreational vehicle, or, in the case 
44.12 	of a motorcycle or a motorized bicycle, one disability plate the same size as a regular 
44.13 	motorcycle plate.
44.14 	(b) The commissioner shall not issue more than one plate to the owner of a motorcycle 
44.15 	or a motorized bicycle and not more than one set of plates to any owner of another vehicle 
44.16 	described in paragraph (a) at the same time unless the state Council on Disability approves 
44.17 	the issuance of a second plate or set of plates to an owner.
44.18 	(c) When the owner first applies for the disability plate or plates, the owner must submit 
44.19 	a medical statement in a format approved by the commissioner under section 169.345, or 
44.20 	proof of physical disability provided for in that section.
44.21 	(d) No medical statement or proof of disability is required when an owner applies for a 
44.22 	plate or plates for one or more vehicles listed in paragraph (a) that are specially modified 
44.23 	for and used exclusively by permanently physically disabled persons.
44.24 	(e) The owner of a vehicle listed in paragraph (a) may apply for and secure (i) 
44.25 	immediately, a permit valid for 30 days, if the applicant is eligible to receive the disability 
44.26 	plate or plates issued under this section, and (ii) a disability plate or plates for the vehicle 
44.27 	if:
44.28 	(1) the owner employs a permanently physically disabled person who would qualify for 
44.29 	the disability plate or plates under this section; and
44.30 	(2) the owner furnishes the motor vehicle to the physically disabled person for the 
44.31 	exclusive use of that person in the course of employment.

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

45.1 	Sec. 39. Minnesota Statutes 2016, section 168.021, subdivision 2, is amended to read:
45.2 		Subd. 2.Plate design; furnished by commissioner. The commissioner shall design 
45.3 	and furnish two disability plates, or one disability plate for a motorcycle or a motorized 
45.4 	bicycle that is the same size as a regular motorcycle plate, with attached emblem or emblems 
45.5 	to an eligible owner. The emblem must bear the internationally accepted wheelchair symbol, 
45.6 	as designated in section 326B.106, subdivision 9, approximately three inches square. The 
45.7 	emblem must be large enough to be visible plainly from a distance of 50 feet. An applicant 
45.8 	eligible for a disability plate or plates shall pay the motor vehicle registration fee authorized 
45.9 	by sections 168.013 and 168.09.

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

45.11 	Sec. 40. Minnesota Statutes 2016, section 168.021, subdivision 2a, is amended to read:
45.12 		Subd. 2a.Plate transfer. (a) When ownership of a vehicle described in subdivision 1, 
45.13 	is transferred, the owner of the vehicle shall remove the disability plate or plates. The buyer 
45.14 	of the motor vehicle is entitled to receive a regular plate or plates for the vehicle without 
45.15 	further cost for the remainder of the registration period.
45.16 	(b) Notwithstanding section 168.12, subdivision 1, the disability plate or plates may be 
45.17 	transferred to a replacement vehicle on notification to the commissioner. However, the 
45.18 	disability plate or plates may not be transferred unless the replacement vehicle (1) is listed 
45.19 	under section 168.012, subdivision 1, and, in case of a single plate for a motorcycle or a 
45.20 	motorized bicycle, the replacement vehicle is a motorcycle or a motorized bicycle, and (2) 
45.21 	is owned or primarily operated by the permanently physically disabled person.

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

45.23 	Sec. 41. [168.1256] RETIRED LAW ENFORCEMENT SPECIAL PLATES.
45.24 		Subdivision 1.Issuance of plates. The commissioner shall issue retired law enforcement 
45.25 	license special plates or a single motorcycle plate to an applicant who:
45.26 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
45.27 	truck, motorcycle, or recreational vehicle;
45.28 	(2) is a retired peace officer as defined in section 626.84, subdivision 1, paragraph (c) 
45.29 	or (d);
45.30 	(3) provides a letter from the chief law enforcement officer affirming that the applicant 
45.31 	is a retired peace officer who served ten or more years and separated in good standing;
46.1 	(4) pays a fee of $10 for each set of plates, along with any other fees required by this 
46.2 	chapter;
46.3 	(5) pays the registration tax as required under section 168.013; and
46.4 	(6) complies with this chapter and rules governing registration of motor vehicles and 
46.5 	licensing of drivers.
46.6 		Subd. 2.Design. The commissioner shall design an emblem and inscription for the 
46.7 	special plates, in consultation with interested law enforcement agencies and organizations.
46.8 		Subd. 3.Plates transfer. On application to the commissioner and payment of a transfer 
46.9 	fee of $5, special plates issued under this section may be transferred to another motor vehicle 
46.10 	if the subsequent vehicle is:
46.11 	(1) qualified under subdivision 1, clause (1), to bear the special plates; and
46.12 	(2) registered to the same individual to whom the special plates were originally issued.
46.13 		Subd. 4.Exemption. Special plates issued under this section are not subject to section 
46.14 	168.1293, subdivision 2.

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

46.17 	Sec. 42. [168.1294] "START SEEING MOTORCYCLES" SPECIAL PLATES.
46.18 		Subdivision 1.Issuance of plates. The commissioner must issue "Start Seeing 
46.19 	Motorcycles" special license plates or a single motorcycle plate to an applicant who:
46.20 	(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup 
46.21 	truck, motorcycle, or recreational vehicle;
46.22 	(2) pays a fee of $10 for each set of plates;
46.23 	(3) pays the registration tax as required under section 168.013, along with any other fees 
46.24 	required by this chapter;
46.25 	(4) contributes a minimum of $10 annually to the motorcycle safety fund, created under 
46.26 	section 171.06, subdivision 2a, paragraph (a), clause (1); and
46.27 	(5) complies with this chapter and rules governing registration of motor vehicles and 
46.28 	licensing of drivers.
46.29 		Subd. 2.Design. The representatives of American Bikers for Awareness, Training, and 
46.30 	Education of Minnesota must design the special plate to contain the inscription "Start Seeing 
47.1 	Motorcycles" between the bolt holes on the bottom of the plate with a design area on the 
47.2 	left side of the plate, subject to the approval of the commissioner.
47.3 		Subd. 3.Plates transfer. On application to the commissioner and payment of a transfer 
47.4 	fee of $5, special plates issued under this section may be transferred to another motor vehicle 
47.5 	if the subsequent vehicle is:
47.6 	(1) qualified under subdivision 1, clause (1), to bear the special plates; and
47.7 	(2) registered to the same individual to whom the special plates were originally issued.
47.8 		Subd. 4.Exemption. Special plates issued under this section are not subject to section 
47.9 	168.1293, subdivision 2.
47.10 		Subd. 5.Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are 
47.11 	credited to the vehicle services operating account in the special revenue fund.
47.12 		Subd. 6.No refund. Contributions under this section must not be refunded.

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

47.15 	Sec. 43. Minnesota Statutes 2016, section 168.27, is amended by adding a subdivision to 
47.16 	read:
47.17 		Subd. 31.Documentary fee. (a) A motor vehicle dealer may not charge a documentary 
47.18 	fee or document administration fee in excess of the amounts provided under paragraph (b) 
47.19 	for services actually rendered to, for, or on behalf of the retail buyer or lessee to prepare, 
47.20 	handle, and process documents for the closing of a motor vehicle retail sale or lease. The 
47.21 	fee must be separately stated on the sales agreement maintained under Minnesota Rules, 
47.22 	part 7400.5200, and may be excluded from the dealer's advertised price.
47.23 	(b) For motor vehicle sales or leases made on or after July 1, 2017, through June 30, 
47.24 	2020, the maximum fee is $100. For motor vehicle sales or leases made on or after July 1, 
47.25 	2020, the maximum fee is $125.
47.26 	(c) "Documentary fee" and "document administration fee" do not include an optional 
47.27 	electronic transfer fee as defined under section 53C.01, subdivision 14.

47.28 	Sec. 44. Minnesota Statutes 2016, section 168.33, subdivision 2, is amended to read:
47.29 		Subd. 2.Deputy registrars. (a) The commissioner may appoint, and for cause 
47.30 	discontinue, a deputy registrar for any statutory or home rule charter city as the public 
47.31 	interest and convenience may require, without regard to whether the county auditor of the 
48.1 	county in which the city is situated has been appointed as the deputy registrar for the county 
48.2 	or has been discontinued as the deputy registrar for the county, and without regard to whether 
48.3 	the county in which the city is situated has established a county license bureau that issues 
48.4 	motor vehicle licenses as provided in section 373.32.
48.5 	(b) The commissioner may appoint, and for cause discontinue, a deputy registrar for any 
48.6 	statutory or home rule charter city as the public interest and convenience may require, if 
48.7 	the auditor for the county in which the city is situated chooses not to accept appointment 
48.8 	as the deputy registrar for the county or is discontinued as a deputy registrar, or if the county 
48.9 	in which the city is situated has not established a county license bureau that issues motor 
48.10 	vehicle licenses as provided in section 373.32.
48.11 	(c) The commissioner may appoint, and for cause discontinue, the county auditor of 
48.12 	each county as a deputy registrar.
48.13 	(d) Despite any other provision, a person other than a county auditor or a director of a 
48.14 	county license bureau, who was appointed by the registrar before August 1, 1976, as a 
48.15 	deputy registrar for any statutory or home rule charter city, may continue to serve as deputy 
48.16 	registrar and may be discontinued for cause only by the commissioner. The county auditor 
48.17 	who appointed the deputy registrars is responsible for the acts of deputy registrars appointed 
48.18 	by the auditor.
48.19 	(e) Each deputy, before entering upon the discharge of duties, shall take and subscribe 
48.20 	an oath to faithfully discharge the duties and to uphold the laws of the state.
48.21 	(f) If a deputy registrar appointed under this subdivision is not an officer or employee 
48.22 	of a county or statutory or home rule charter city, the deputy shall in addition give bond to 
48.23 	the state in the sum of $10,000, or a larger sum as may be required by the commissioner, 
48.24 	conditioned upon the faithful discharge of duties as deputy registrar.
48.25 	(g) A corporation governed by chapter 302A or 317A may be appointed a deputy registrar. 
48.26 	Upon application by an individual serving as a deputy registrar and the giving of the requisite 
48.27 	bond as provided in this subdivision, personally assured by the individual or another 
48.28 	individual approved by the commissioner, a corporation named in an application then 
48.29 	becomes the duly appointed and qualified successor to the deputy registrar.
48.30 	(h) Each deputy registrar appointed under this subdivision shall keep and maintain office 
48.31 	locations approved by the commissioner for the registration of vehicles and the collection 
48.32 	of taxes and fees on vehicles.
49.1 	(i) The deputy registrar shall keep records and make reports to the commissioner as the 
49.2 	commissioner requires. The records must be maintained at the offices of the deputy registrar.
49.3 	in a manner that complies with sections 13.05, subdivision 5, and 13.055. As an alternative 
49.4 	to paper copy storage, a deputy registrar may retain records and documents in a secure 
49.5 	electronic medium that complies with the security requirements under the United States 
49.6 	Federal Bureau of Investigation, Criminal Justice Information Services Division, Policy 5.4 
49.7 	or any successor policy, provided 60 days have elapsed since the transaction and subject to 
49.8 	standards established by the commissioner. The deputy registrar is responsible for all costs 
49.9 	associated with the conversion to electronic records and maintenance of the electronic 
49.10 	storage medium, including the destruction of existing paper records after conversion to the 
49.11 	electronic format. All queries and responses in the secure electronic medium, and all actions 
49.12 	in which data are entered, updated, accessed, or shared or disseminated by the deputy 
49.13 	registrar must be contained in a data audit trail. Data contained in the audit trail are public 
49.14 	to the extent the data are not otherwise classified under this section. The records and offices 
49.15 	of the deputy registrar must at all times be open to the inspection of the commissioner or 
49.16 	the commissioner's agents. The deputy registrar shall report to the commissioner by the 
49.17 	next working day following receipt all registrations made and taxes and fees collected by 
49.18 	the deputy registrar.
49.19 	(j) The filing fee imposed under subdivision 7 must be deposited in the treasury of the 
49.20 	place for which appointed or, if not a public official, a deputy shall retain the filing fee, but 
49.21 	the registration tax and any additional fees for delayed registration the deputy registrar has 
49.22 	collected the deputy registrar shall deposit by the next working day following receipt in an 
49.23 	approved state depository to the credit of the state through the commissioner of management 
49.24 	and budget. The place for which the deputy registrar is appointed through its governing 
49.25 	body must provide the deputy registrar with facilities and personnel to carry out the duties 
49.26 	imposed by this subdivision if the deputy is a public official. In all other cases, the deputy 
49.27 	shall maintain a suitable facility for serving the public.

49.28 	Sec. 45. Minnesota Statutes 2016, section 168A.09, subdivision 1, is amended to read:
49.29 		Subdivision 1.Application, issuance, form, bond, and notice. (a) In the event a 
49.30 	certificate of title is lost, stolen, mutilated, or destroyed, or becomes illegible, the owner or 
49.31 	legal representative of the owner named in the certificate may make submit an application 
49.32 	to the department or a deputy registrar for a duplicate in a format prescribed by the 
49.33 	department. The department shall or deputy registrar must issue a duplicate certificate of 
49.34 	title if satisfied that the applicant is entitled thereto to the duplicate certificate of title. The 
49.35 	duplicate certificate of title shall must be plainly marked as a duplicate and mailed or 
50.1 	delivered to the owner. The department shall or deputy registrar must indicate in its the 
50.2 	driver and vehicle information system records that a duplicate certificate of title has been 
50.3 	issued. As a condition to issuing a duplicate certificate of title, the department may require 
50.4 	a bond from the applicant in the manner and format prescribed in section 168A.07, 
50.5 	subdivision 1, clause (2). The duplicate certificate of title shall must contain the legend: 
50.6 	"This duplicate certificate of title may be subject to the rights of a person under the original 
50.7 	certificate."
50.8 	(b) On and after the effective date of this section, the commissioner must allow duplicate 
50.9 	certificate of title issuance by a deputy registrar, subject to procedures established by the 
50.10 	commissioner.

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

50.12 	Sec. 46. [168A.125] TRANSFER-ON-DEATH TITLE TO MOTOR VEHICLE.
50.13 		Subdivision 1.Titled as transfer-on-death. A natural person who is the owner of a 
50.14 	motor vehicle may have the motor vehicle titled in transfer-on-death or TOD form by 
50.15 	including in the application for the certificate of title a designation of a beneficiary or 
50.16 	beneficiaries to whom the motor vehicle must be transferred on death of the owner or the 
50.17 	last survivor of joint owners with rights of survivorship, subject to the rights of secured 
50.18 	parties.
50.19 		Subd. 2.Designation of beneficiary. A motor vehicle is registered in transfer-on-death 
50.20 	form by designating on the certificate of title the name of the owner and the names of joint 
50.21 	owners with identification of rights of survivorship, followed by the words "transfer-on-death 
50.22 	to (name of beneficiary or beneficiaries)." The designation "TOD" may be used instead of 
50.23 	"transfer-on-death." A title in transfer-on-death form is not required to be supported by 
50.24 	consideration, and the certificate of title in which the designation is made is not required to 
50.25 	be delivered to the beneficiary or beneficiaries in order for the designation to be effective. 
50.26 	If the owner of the motor vehicle is married at the time of the designation, the designation 
50.27 	of a beneficiary other than the owner's spouse requires the spouse's written consent.
50.28 		Subd. 3.Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries have 
50.29 	no interest in the motor vehicle until the death of the owner or the last survivor of joint 
50.30 	owners with rights of survivorship. A beneficiary designation may be changed at any time 
50.31 	by the owner or by all joint owners with rights of survivorship, without the consent of the 
50.32 	beneficiary or beneficiaries, by filing an application for a new certificate of title.
51.1 		Subd. 4.Vesting of ownership in beneficiary. Ownership of a motor vehicle titled in 
51.2 	transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of 
51.3 	the owner or the last of the joint owners with rights of survivorship, subject to the rights of 
51.4 	secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner 
51.5 	may apply for a new certificate of title to the motor vehicle upon submitting a certified death 
51.6 	record of the owner of the motor vehicle. If no transfer-on-death beneficiary or beneficiaries 
51.7 	survive the owner of a motor vehicle, the motor vehicle must be included in the probate 
51.8 	estate of the deceased owner. A transfer of a motor vehicle to a transfer-on-death beneficiary 
51.9 	or beneficiaries is not a testamentary transfer.
51.10 		Subd. 5.Rights of creditors. (a) This section does not limit the rights of any secured 
51.11 	party or creditor of the owner of a motor vehicle against a transfer-on-death beneficiary or 
51.12 	beneficiaries.
51.13 	(b) The state or a county agency with a claim or lien authorized by section 246.53, 
51.14 	256B.15, 261.04, or 270C.63 is a creditor for purposes of this subdivision. A claim authorized 
51.15 	by section 256B.15 against the estate of an owner of a motor vehicle titled in 
51.16 	transfer-on-death form voids any transfer-on-death conveyance of a motor vehicle as 
51.17 	described in this section. A claim or lien under section 246.53, 261.04, or 270C.63 continues 
51.18 	to apply against the designated beneficiary or beneficiaries after the transfer under this 
51.19 	section if other assets of the deceased owner's estate are insufficient to pay the amount of 
51.20 	the claim. The claim or lien continues to apply to the motor vehicle until the designated 
51.21 	beneficiary sells or transfers it to a person against whom the claim or lien does not apply 
51.22 	and who did not have actual notice or knowledge of the claim or lien.

51.23 	Sec. 47. Minnesota Statutes 2016, section 168A.141, is amended to read:
51.24 	168A.141 MANUFACTURED HOME AFFIXED TO REAL PROPERTY.
51.25 		Subdivision 1.Certificates surrendered for cancellation. (a) When a manufactured 
51.26 	home is to be affixed or is affixed, as defined in section 273.125, subdivision 8, paragraph 
51.27 	(b), to real property, and financed by the giving of a mortgage on the real property, the 
51.28 	owner of the manufactured home shall may surrender the manufacturer's certificate of origin 
51.29 	or certificate of title to the department for cancellation. The owner of so that the manufactured 
51.30 	home shall give the department the address and legal description of the becomes an 
51.31 	improvement to real property. The department may require the filing of other information
51.32 	and is no longer titled as personal property. The department must not issue a certificate of 
51.33 	title for a manufactured home under chapter 168A if the manufacturer's certificate of origin 
51.34 	is or has been surrendered under this subdivision, except as provided in section 168A.142. 
52.1 	Upon surrender of the manufacturer's certificate of origin or the certificate of title, the 
52.2 	department shall must issue notice of surrender to the owner, and upon recording an affidavit 
52.3 	of affixation, which the county recorder or registrar of titles, as applicable, must accept, the 
52.4 	manufactured home is deemed to be an improvement to real property. The notice of surrender 
52.5 	may be recorded in the office of the county recorder or with the registrar of titles if the land 
52.6 	is registered but need not contain an acknowledgment. An affidavit of affixation by the 
52.7 	owner of the manufactured home must include the following information:
52.8 	(1) the name, residence address, and mailing address of owner or owners of the 
52.9 	manufactured home;
52.10 	(2) the legal description of the real property in which the manufactured home is, or will 
52.11 	be, located;
52.12 	(3) a copy of the surrendered manufacturer's certificate of origin or certificate of title 
52.13 	and the notice of surrender;
52.14 	(4) a written statement from the county auditor or county treasurer of the county where 
52.15 	the manufactured home is located stating that all property taxes payable in the current year, 
52.16 	as provided under section 273.125, subdivision 8, paragraph (b), have been paid, or are not 
52.17 	applicable;
52.18 	(5) the name and address of the person designated by the applicant to record the original 
52.19 	affidavit of affixation with the county recorder or registrar of titles for the county where the 
52.20 	real property is located; and
52.21 	(6) the signature of the person who executes the affidavit, properly executed before a 
52.22 	person authorized to authenticate an affidavit in this state.
52.23 	(b) The person designated in paragraph (a), clause (5), must record, or arrange for the 
52.24 	recording of, the affidavit of affixation, accompanied by the fees for recording and for 
52.25 	issuing a certified copy of the notice, including all attachments, showing the recording date. 
52.26 	Upon obtaining the certified copy of the notice under this paragraph, the person designated 
52.27 	in the affidavit must deliver the certified copy to the county auditor of the county in which 
52.28 	the real property to which the manufactured home was affixed is located.
52.29 	(c) The department is not liable for any errors, omissions, misstatements, or other 
52.30 	deficiencies or inaccuracies in documents presented to the department under this section, 
52.31 	if the documents presented appear to satisfy the requirements of this section. The department 
52.32 	has no obligation to investigate the accuracy of statements contained in the documents.
53.1 		Subd. 1a.Affidavit form. An affidavit of affixation must be in substantially the following 
53.2 	form and must contain the following information.
53.3 	MANUFACTURED HOME AFFIDAVIT OF AFFIXATION
53.4 	PURSUANT TO MINNESOTA STATUTES, SECTION 168A.141
53.5 	Homeowner, being duly sworn, on his or her oath, states as follows:
53.6 	1. Homeowner owns the manufactured home ("home") described as follows:

53.7	........
	
53.953.8
	New/Used
	Year
	Manufacturer's 
Name
	Model Name or 
Model No.
	Manufacturer's 
Serial No.
	Length/Width
	
53.10 	2. A copy of the surrendered manufacturer's certificate of origin or certificate of title is 
53.11 	attached.
53.12 	3. A copy of the notice of surrender issued from the Minnesota Department of Public Safety 
53.13 	Driver and Vehicle Services is attached.
53.14 	4. The home is or will be located at the following "Property Address":

53.15	........
	
53.16	Street or Route ........
	City ........
	County ........
	State ........
	Zip Code ........
	
53.17 	5. The legal description of the property address ("land") is as follows or as attached hereto:

53.18	........
	
53.19	........
	
53.20	........
	
53.21 	6. The homeowner is the owner of the land.
53.22 	7. The home is, or must be promptly upon delivery, anchored to the land by attachment to 
53.23 	a permanent foundation and connected to appropriate residential utilities (e.g., water, gas, 
53.24 	electricity, sewer).
53.25 	8. The homeowner intends that the home be an immovable permanent improvement to the 
53.26 	land, free of any personal property security interest.
53.27 	9. A copy of the written statement from the county auditor or county treasurer of the county 
53.28 	in which the manufactured home is then located, stating that all property taxes payable in 
53.29 	the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph 
53.30 	(b)), have been paid, or are not applicable, is attached.
53.31 	10. The home must be assessed and taxed as an improvement to the land.
54.1 	11. The name and address of the person designated by the homeowner to record the original 
54.2 	affidavit of surrender with the county recorder or registrar of titles of the county in which 
54.3 	the real estate is located is:

54.4	Name ........
		
54.5	Street Address ........
		
54.6	City, State, Zip Code ........
		
54.7	Phone ........
		
54.8	E-mail ........
		
54.9 	IN WITNESS WHEREOF, homeowner(s) have executed this affidavit on this ....... day of 
54.10 	......., 20...

54.11	........
	........
	
54.12	Homeowner Signature
	Address
	
54.13	........
	........
	
54.14	Printed Name
	City, State
	
54.15	........
		
54.16	Homeowner Signature (if applicable)
		
54.17	........
		
54.18	Printed Name
		
54.19 	This instrument was drafted by, and when recorded return to:

54.20	........
		
54.21	........
		
54.22	........
		
54.23 	Subscribed and sworn to before me this ....... day of ......., .......

54.24	......................................................................
		
54.25	Signature of Notary Public or Other Official
		
54.26 	Notary Stamp or Seal
54.27 	(optional)
54.28 	Lender's Statement of Intent:
54.29 	The undersigned ("lender") intends that the home be immovable and a permanent 
54.30 	improvement to the land free of any personal property security interest.

54.31	........
		
54.32	Lender
		
54.33	By: ........
		
54.34	Authorized Signature
		
55.1	STATE OF ........)
		
55.2	........) ss:
		
55.3	COUNTY OF ........)
		
55.4 	On the ....... day of ....... in the year ....... before me, the undersigned, a Notary Public in and 
55.5 	for said state, personally appeared

55.6	........
	
55.7 	personally known to me or proved to me on the basis of satisfactory evidence to be the 
55.8 	individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged 
55.9 	to me that he/she/they executed the same in his/her/their capacity(ies), and that by 
55.10 	his/her/their signature(s) on the instrument, the individual(s), or the person on behalf of 
55.11 	which the individual(s) acted, executed the instrument.

55.12	........
		
55.13	Notary Signature
		
55.14	........
		
55.15	Notary Printed Name
		
55.16	Notary Public, State of ........
		
55.17	Qualified in the County of ........
		
55.18	My commission expires ........
		
55.19 	Official seal:
55.20 		Subd. 2.Perfected security interest avoids cancellation prevents surrender. The 
55.21 	department may not cancel a certificate of title if, under this chapter, a security interest has 
55.22 	been perfected on the manufactured home. If a security interest has been perfected, the 
55.23 	department shall must notify the owner and that each secured party that the must release or 
55.24 	satisfy the security interest prior to proceeding with surrender of the manufacturer's certificate 
55.25 	of origin or certificate of title and a description of the security interest have been surrendered
55.26 	to the department and that the department will not cancel the certificate of title until the 
55.27 	security interest is satisfied for cancellation. Permanent attachment to real property or the 
55.28 	recording of an affidavit of affixation does not extinguish an otherwise valid security interest 
55.29 	in or tax lien on the manufactured home, unless the requirements of section 168A.141, 
55.30 	subdivisions 1, 1a, and 2, including the release of any security interest, have been satisfied.
55.31 		Subd. 3.Notice of security interest avoids surrender. The manufacturer's certificate 
55.32 	of origin or the certificate of title need not be surrendered to the department under subdivision 
55.33 	1 When a perfected security interest exists, or will exist, on the manufactured home at the 
55.34 	time the manufactured home is affixed to real property, if and the owner has not satisfied 
55.35 	the requirements of section 168A.141, subdivision 1, the owner of the manufactured home 
56.1 	files, or its secured party, may record a notice with the county recorder, or with the registrar 
56.2 	of titles, if the land is registered, stating that the manufactured home located on the property 
56.3 	is encumbered by a perfected security interest and is not an improvement to real property. 
56.4 	The notice must state the name and address of the secured party as set forth on the certificate 
56.5 	of title, the legal description of the real property, and the name and address of the record 
56.6 	fee owner of the real property on which the manufactured home is affixed. When the security 
56.7 	interest is released or satisfied, the secured party shall must attach a copy of the release or 
56.8 	satisfaction to a notice executed by the secured party containing the county recorder or 
56.9 	registrar of titles document number of the notice of security interest. The notice of release 
56.10 	or satisfaction must be filed recorded with the county recorder, or registrar of titles, if the 
56.11 	land is registered. Neither the notice described in this subdivision nor the security interest 
56.12 	on the certificate of title is deemed to be an encumbrance on the real property. The notices 
56.13 	provided for in this subdivision need not be acknowledged.

56.14 	Sec. 48. Minnesota Statutes 2016, section 168A.142, is amended to read:
56.15 	168A.142 MANUFACTURED HOME UNAFFIXED FROM REALTY.
56.16 		Subdivision 1.Certificate of title requirements. The department shall must issue an 
56.17 	initial certificate of title or reissue a previously surrendered certificate of title for a 
56.18 	manufactured home to an applicant if:
56.19 	(1) for the purpose of affixing the manufactured home to real property, the owner of the 
56.20 	manufactured home, or a previous owner, surrendered the manufacturer's certificate of 
56.21 	origin or certificate of title to the department as provided in section 168A.141, subdivision 
56.22 	1 or 2;
56.23 	(2) the applicant provides the written proof evidence specified in subdivision 2 that the 
56.24 	applicant owns (i) the manufactured home and (ii) the real property to which the 
56.25 	manufactured home was affixed as provided under section 273.125, subdivision 8, paragraph 
56.26 	(b);
56.27 	(3) the applicant provides proof that no liens exist on the manufactured home, including 
56.28 	liens on the real property to which it is affixed; and
56.29 	(4) (3) the owner of the manufactured home meets fulfills the applicable application 
56.30 	requirements of section 168A.04,; and
56.31 	(4) the application is accompanied by a written statement from the county auditor or 
56.32 	county treasurer of the county in which the manufactured home is then located and affixed, 
57.1 	stating that all property taxes payable in the current year, as provided under section 273.125, 
57.2 	subdivision 8, paragraph (b), have been paid.
57.3 		Subd. 2.Proof Evidence of eligibility for reissuance. (a) The proof evidence required 
57.4 	under subdivision 1, clauses clause (2) and (3), is as follows:
57.5 	(1) an affidavit of severance recorded in the office of the county recorder or registrar of 
57.6 	titles, which they shall accept, and whichever applies to the real property, of the county in 
57.7 	which where the affidavit of affixation or notice of surrender was recorded under as required 
57.8 	in section 168A.141, subdivision 1, and the affidavit of severance contains:
57.9 	(i) the name, residence address, and mailing address of the owner or owners of the 
57.10 	manufactured home;
57.11 	(ii) a description of the manufactured home being severed, including the name of the 
57.12 	manufacturer; the make, model number, model year, and dimensions, and if available, the 
57.13 	make, model year, and manufacturer's serial number of the manufactured home; and whether 
57.14 	the manufactured home is new or used, such information as may be available from the 
57.15 	previously recorded affidavit of affixation or notice of surrender as required in section 
57.16 	168A.141, subdivision 1; and
57.17 	(iii) a statement of any facts or information known to the person executing the affidavit 
57.18 	that could affect the validity of the title of the manufactured home or, the existence or
57.19 	nonexistence of a security interest in the manufactured home or a lien on it, or, and a 
57.20 	statement that no such facts or information are known to the person executing the affidavit;
57.21 	(2) as an attachment to the affidavit of severance, an opinion by an attorney admitted to 
57.22 	practice law in this state, stating:
57.23 	(i) the nature of the examination of title performed prior to giving this opinion by the 
57.24 	person signing the opinion;
57.25 	(ii) that the manufactured home and the real property on which it is located is not subject 
57.26 	to, or pending completion of a refinance, purchase, or sale transaction, and will not be 
57.27 	subject to any recorded mortgages, security interests, liens, or other encumbrances of any 
57.28 	kind;
57.29 	(iii) that the person signing the opinion knows of no facts or circumstances that could 
57.30 	affect the validity of the title of the manufactured home or the existence or nonexistence of 
57.31 	any recorded mortgages, security interests, or other encumbrances of any kind, other than 
57.32 	property taxes payable in the year the affidavit is signed;
58.1 	(iv) the person or persons owning record title to the real property to which the 
58.2 	manufactured home has been affixed and the nature and extent of the title owned by each 
58.3 	of these persons; and
58.4 	(v) that the person signing the opinion has reviewed all provisions of the affidavit of 
58.5 	severance and certifies that they are correct and complete to the best of the knowledge of 
58.6 	the person signing the opinion;
58.7 	(3) the name and address of the person or, persons designated by the applicant to file a 
58.8 	certified copy of the original affidavit of severance with the county auditor of the county 
58.9 	in which the real estate is located, after the affidavit has been properly recorded in the office 
58.10 	of the county recorder or county registrar of titles, whichever applies to the real property; 
58.11 	and
58.12 	(4) the signature of the person who executes the affidavit, properly executed before a 
58.13 	person authorized to authenticate an affidavit in this state.
58.14 	(b) The person designated in paragraph (a), clause (3), shall must record, or arrange for 
58.15 	the recording of, the affidavit of severance as referenced in that item, accompanied by the 
58.16 	fees for recording and for issuing a certified copy of the affidavit, including all attachments, 
58.17 	showing the recording date.
58.18 	(c) Upon obtaining the certified copy under paragraph (b), the person designated in the 
58.19 	affidavit shall must deliver the certified copy to the county auditor of the county in which 
58.20 	the real estate to which it was affixed is located.
58.21 	(d) The department is not liable for any errors, omissions, misstatements, or other 
58.22 	deficiencies or inaccuracies in documents presented to the department under this section, 
58.23 	so long as the documents presented appear to satisfy the requirements of this section. The 
58.24 	department has no obligation to investigate the accuracy of statements contained in the 
58.25 	documents.
58.26 		Subd. 3.Affidavit form. The affidavit of severance must be in substantially the following 
58.27 	form and must contain the following information.
58.28 	MANUFACTURED HOME AFFIDAVIT OF SEVERANCE
58.29 	PURSUANT TO MINNESOTA STATUTES, SECTION 168A.142
58.30 	Homeowner, being duly sworn, on his or her oath, states as follows:
58.31 	1. Homeowner owns the manufactured home ("home") described as follows:

58.32	........
	
59.259.1
	New/Used
	Year
	Manufacturer's 
Name
	Model Name or 
Model No.
	Manufacturer's 
Serial No.
	Length/Width
	
59.3 	2. A copy of the previously surrendered manufacturer's certificate of origin or certificate of 
59.4 	title is attached (if available).
59.5 	3. A copy of the notice of surrender issued from the Minnesota Department of Public Safety 
59.6 	Driver and Vehicle Services is attached (if available).
59.7 	4. The home is or will be located at the following "Property Address":

59.8	........
	
59.9	Street or Route ........
	City ........
	County ........
	State ........
	Zip Code ........
	
59.10 	5. The legal description of the property address ("land") is as follows or as attached:

59.11	........
	
59.12	........
	
59.13	........
	
59.14 	6. The homeowner does not know of any facts or information that could affect the validity 
59.15 	of title of the manufactured home, except:

59.16	........
	
59.17	........
	
59.18 	7. The homeowner does not know of any such security interest in the manufactured home 
59.19 	which has not been satisfied or released.
59.20 	8. A copy of an opinion by an attorney admitted to practice law in Minnesota is attached, 
59.21 	which provides for the required title evidence as set forth in Minnesota Statutes, section 
59.22 	168A.142, subdivision 2, clause (2), items (i) to (v).
59.23 	9. A copy of the written statement from the county auditor or county treasurer of the county 
59.24 	in which the manufactured home is then located, stating that all property taxes payable in 
59.25 	the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph 
59.26 	(b)), have been paid, or are not applicable, is attached.
59.27 	10. The name and address of the person designated by the homeowner to record  the original 
59.28 	affidavit of surrender with the county recorder or registrar of titles of the county in which 
59.29 	the real estate is located is:

59.30	Name ........
		
59.31	Street Address ........
		
59.32	City, State, Zip Code ........
		
59.33	Phone ........
		
60.1	E-mail ........
		
60.2 	IN WITNESS WHEREOF, homeowner(s) have executed this affidavit on this ....... day of 
60.3 	......., 20...

60.4	........
	........
	
60.5	Homeowner Signature
	Address
	
60.6	........
	........
	
60.7	Printed Name
	City, State
	
60.8	........
		
60.9	Homeowner Signature (if applicable)
		
60.10	........
		
60.11	Printed Name
		
60.12 	This instrument was drafted by, and  when recorded return to:

60.13	........
		
60.14	........
		
60.15 	Subscribed and sworn to before me this ....... day of ......., .......

60.16	......................................................................
	
60.17	Signature of Notary Public or Other Official
	
60.18 	Notary Stamp or Seal

60.19 	Sec. 49. [168A.143] MANUFACTURED HOMES; OWNERSHIP AT ISSUE.
60.20 		Subdivision 1.Requirements for certificate issuance or reissuance. When an applicant 
60.21 	is unable to obtain from or locate previous owners no longer holding an interest in the 
60.22 	manufactured home based on a certificate of title, or to locate, obtain, or produce the original 
60.23 	certificate of origin or certificate of title for a manufactured home, and there is no evidence 
60.24 	of a surrendered certificate of title or manufacturer's statement of origin as provided in 
60.25 	section 168A.141, subdivision 1, which has not otherwise been unaffixed or is being 
60.26 	unaffixed as provided in section 168A.142, the department must issue or reissue a certificate 
60.27 	of title to a manufactured home when the applicant submits:
60.28 	(1) the application, pursuant to the requirements of section 168A.04, in a form prescribed 
60.29 	by the department;
60.30 	(2) an affidavit that:
60.31 	(i) identifies the name of the manufacturer and dimensions, and if available, the make, 
60.32 	model number, model year, and manufacturer's serial number of the manufactured home; 
60.33 	and
61.1 	(ii) certifies the applicant is the owner of the manufactured home, has physical possession 
61.2 	of the manufactured home, knows of no facts or circumstances that materially affect the 
61.3 	validity of the title of the manufactured home as represented in the application, and provides 
61.4 	copies of such ownership documents, so far as the documents exist, including by way of 
61.5 	example:
61.6 	(A) bill of sale;
61.7 	(B) financing, replevin, or foreclosure documents;
61.8 	(C) appraisal;
61.9 	(D) insurance certification;
61.10 	(E) personal property tax bill;
61.11 	(F) landlord certification;
61.12 	(G) affidavit of survivorship or estate documents;
61.13 	(H) divorce decree; or
61.14 	(I) court order;
61.15 	(3) an affidavit by an attorney admitted to practice law in this state stating:
61.16 	(i) the attorney has performed a search of the Minnesota Department of Public Safety 
61.17 	Driver and Vehicles Services records within 120 days of the date of application to obtain a 
61.18 	certificate of origin or certificate of title on behalf of the applicant, but was unable to 
61.19 	determine the names or locations of one or more owners or prior owners of the manufactured 
61.20 	home;
61.21 	(ii) if applicable, the attorney was unable to successfully contact one or more owners, 
61.22 	or prior owners, after providing written notice 45 days prior to the registered and last known 
61.23 	owner  by certified mail at the address shown on Driver and Vehicles Services records, or 
61.24 	if the last known address if different from Driver and Vehicles Services records, then also 
61.25 	the last known address as known to the applicant;
61.26 	(iii) if the attorney is unable to contact one or more owners, or previous owners, by 
61.27 	sending a letter by certified mail, then the attorney must present to the department, as an 
61.28 	attachment to its affidavit, the returned letter as evidence of the attempted contact, or the 
61.29 	acknowledgment of receipt of the letter, together with an affidavit of nonresponse; and
62.1 	(iv) the attorney knows of no facts or circumstances that materially affect the validity 
62.2 	of the title of the manufactured home as represented in the application, other than property 
62.3 	taxes payable in the year the affidavit is signed; and
62.4 	(4) payment for required current year taxes and fees as prescribed by the department.
62.5 		Subd. 2.Satisfaction of manufactured home security lien; release. A security interest 
62.6 	perfected under this chapter may be canceled seven years from the perfection date for a 
62.7 	manufactured home, upon the request of the owner of the manufactured home, if the owner 
62.8 	has paid the lien in full or the lien has been abandoned and the owner is unable to locate 
62.9 	the lienholder to obtain a lien release. The owner must send a letter to the lienholder by 
62.10 	certified mail, return receipt requested, stating the reason for the release and requesting a 
62.11 	lien release. If the owner is unable to obtain a lien release by sending a letter by certified 
62.12 	mail, then the owner must present to the department the returned letter as evidence of the 
62.13 	attempted contact, or the acknowledgment of receipt of the letter, together with a copy of 
62.14 	the letter and an owner affidavit of nonresponse.
62.15 		Subd. 3.Suspension or revocation of certificate. (a) Pursuant to section 168A.23, the 
62.16 	department may revoke a previously issued certificate of title issued under this section.
62.17 	(b) The department is not liable for any errors, omissions, misstatements, or other 
62.18 	deficiencies or inaccuracies in documents submitted to the department under this section, 
62.19 	provided the documents submitted appear to satisfy the requirements of this section. The 
62.20 	department is not required to investigate the accuracy of statements contained in submitted 
62.21 	documents.

62.22 	Sec. 50. Minnesota Statutes 2016, section 169.011, is amended by adding a subdivision 
62.23 	to read:
62.24 		Subd. 1a.All-electric vehicle. (a) "All-electric vehicle" means an electric vehicle that 
62.25 	is solely able to be powered by an electric motor drawing current from rechargeable storage 
62.26 	batteries, fuel cells, or other portable sources of electrical current.
62.27 	(b) All-electric vehicle excludes a plug-in hybrid electric vehicle.

62.28 	EFFECTIVE DATE. This section is effective the day following final enactment, and 
62.29 	applies to a registration period starting on or after January 1, 2018.

62.30 	Sec. 51. Minnesota Statutes 2016, section 169.011, subdivision 34, is amended to read:
62.31 		Subd. 34.Head Start bus. (a) "Head Start bus" means a motor vehicle used to transport 
62.32 	children and parents to or from a Head Start facility, or to or from Head Start-related 
63.1 	activities, by the Head Start grantee, or by someone under an agreement with the Head Start 
63.2 	grantee. A Head Start bus does not include a motor vehicle transporting children or parents 
63.3 	to or from a Head Start facility for which parents or guardians receive direct compensation 
63.4 	from a Head Start grantee, a motor coach operating under charter carrier authority, or a 
63.5 	transit bus providing services as defined in section 174.22, subdivision 7. A Head Start bus 
63.6 	may be a type A, B, C, or D bus or type III vehicle, as described in subdivision 71.
63.7 	(b) A Head Start bus manufactured after December 31, 1994, must meet the same 
63.8 	standards as a type A, B, C, or D school bus, except that a Head Start bus is not required to 
63.9 	be equipped with the warning signals required for a school bus under section 169.442, 
63.10 	subdivision 1. A Head Start bus that is not equipped as a school bus must be painted colors 
63.11 	other than national school bus yellow.

63.12 	Sec. 52. Minnesota Statutes 2016, section 169.14, is amended by adding a subdivision to 
63.13 	read:
63.14 		Subd. 5h.St. Louis County Road 128. Notwithstanding any provision to the contrary 
63.15 	in this section, the speed limit on St. Louis County Road 128 in Eagles Nest Township 
63.16 	between marked Trunk Highway 169 and County Road 989 is 40 miles per hour. The county 
63.17 	engineer must erect appropriate signs displaying the 40 miles per hour speed limit.

63.18 	EFFECTIVE DATE. This section is effective the day following final enactment. The 
63.19 	new speed limit is effective when the required signs are erected.

63.20 	Sec. 53. Minnesota Statutes 2016, section 169.18, subdivision 5, is amended to read:
63.21 		Subd. 5.Driving left of roadway center; exception. (a) No vehicle shall be driven to 
63.22 	the left side of the center of the roadway in overtaking and passing another vehicle proceeding 
63.23 	in the same direction unless such left side is clearly visible and is free of oncoming traffic 
63.24 	for a sufficient distance ahead to permit such overtaking and passing to be completely made 
63.25 	without interfering with the safe operation of any vehicle approaching from the opposite 
63.26 	direction or any vehicle overtaken. In every event the overtaking vehicle must return to the 
63.27 	right-hand side of the roadway before coming within 100 feet of any vehicle approaching 
63.28 	from the opposite direction.
63.29 	(b) Except on a one-way roadway, no vehicle shall, in overtaking and passing another 
63.30 	vehicle or at any other time, be driven to the left half of the roadway under the following 
63.31 	conditions:
64.1 	(1) when approaching the crest of a grade or upon a curve in the highway where the 
64.2 	driver's view along the highway is obstructed within a distance of 700 feet;
64.3 	(2) when approaching within 100 feet of any underpass or tunnel, railroad grade crossing, 
64.4 	intersection within a city, or intersection outside of a city if the presence of the intersection 
64.5 	is marked by warning signs; or
64.6 	(3) where official signs are in place prohibiting passing, or a distinctive centerline is 
64.7 	marked, which distinctive line also so prohibits passing, as declared in the Manual on 
64.8 	Uniform Traffic Control Devices adopted by the commissioner.
64.9 	(c) Notwithstanding paragraph (b), clause (3), a motor vehicle may be driven to the left 
64.10 	side of the roadway to safely overtake a bicycle under the following circumstances:
64.11 	(1) the bicycle is proceeding in the same direction as the motor vehicle;
64.12 	(2) the driver of the motor vehicle either (i) provides a safe clearance distance, in no 
64.13 	case less than the greater of three feet or one-half the width of the motor vehicle, or (ii) 
64.14 	completely enters the left lane of the highway;
64.15 	(3) the operator of the bicycle is not (i) making a left turn, or (ii) signaling that the bicycle 
64.16 	operator intends to make a left turn; and
64.17 	(4) the driver of the motor vehicle complies with all other applicable requirements under 
64.18 	this section.

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

64.20 	Sec. 54. Minnesota Statutes 2016, section 169.18, subdivision 7, is amended to read:
64.21 		Subd. 7.Laned highway. When any roadway has been divided into two or more clearly 
64.22 	marked lanes for traffic, the following rules, in addition to all others consistent herewith, 
64.23 	shall apply:
64.24 	(a) A vehicle shall be driven as nearly as practicable entirely within a single lane and 
64.25 	shall not be moved from such lane until the driver has first ascertained that such movement 
64.26 	can be made with safety.
64.27 	(b) Upon a roadway which is not a one-way roadway and which is divided into three 
64.28 	lanes, a vehicle shall not be driven in the center lane except when overtaking and passing 
64.29 	another vehicle where the roadway is clearly visible and such center lane is clear of traffic 
64.30 	within a safe distance, or in preparation for a left turn or where such center lane is at the 
64.31 	time allocated exclusively to traffic moving in the direction the vehicle is proceeding, and 
65.1 	is signposted to give notice of such allocation. The left lane of a three-lane roadway which 
65.2 	is not a one-way roadway shall not be used for overtaking and passing another vehicle.
65.3 	(c) Official signs may be erected directing slow-moving traffic to use a designated lane 
65.4 	or allocating specified lanes to traffic moving in the same direction, and drivers of vehicles 
65.5 	shall obey the directions of every such sign.
65.6 	(d) Whenever a bicycle lane has been established on a roadway, any person operating 
65.7 	a motor vehicle on such roadway shall not drive in the bicycle lane except to perform parking 
65.8 	maneuvers in order to park where parking is permitted, to enter or leave the highway, or to 
65.9 	prepare for a turn as provided in section 169.19, subdivision 1, or to stop a school bus for 
65.10 	the purpose of receiving or discharging any person provided the school bus is equipped and 
65.11 	identified as provided in sections 169.441 and 169.442, subdivision 1, and the flashing red 
65.12 	signals are activated and stop-signal arm is extended.

65.13 	Sec. 55. Minnesota Statutes 2016, section 169.345, subdivision 1, is amended to read:
65.14 		Subdivision 1.Scope of privilege. (a) A vehicle described in section 168.021, subdivision 
65.15 	1, paragraph (a), that prominently displays the certificate authorized by this section or that 
65.16 	bears the disability plate or plates issued under section 168.021 may be parked by or solely 
65.17 	for the benefit of a physically disabled person:
65.18 	(1) in a designated parking space for disabled persons, as provided in section 169.346;
65.19 	(2) in a metered parking space without obligation to pay the meter fee and without time 
65.20 	restrictions unless time restrictions are separately posted on official signs; and
65.21 	(3) without time restrictions in a nonmetered space where parking is otherwise allowed 
65.22 	for passenger vehicles but restricted to a maximum period of time and that does not 
65.23 	specifically prohibit the exercise of disabled parking privileges in that space.
65.24 	A person may park the vehicle for a physically disabled person in a parking space described 
65.25 	in clause (1) or (2) only when actually transporting the physically disabled person for the 
65.26 	sole benefit of that person and when the parking space is within a reasonable distance from 
65.27 	the drop-off point.
65.28 	(b) For purposes of this subdivision, a certificate is prominently displayed if it is displayed 
65.29 	so that it may be viewed from the front and rear of the motor vehicle by hanging it from the 
65.30 	rearview mirror attached to the front windshield of the motor vehicle or, in the case of a 
65.31 	motorcycle or a motorized bicycle, is secured to the vehicle. If there is no rearview mirror 
65.32 	or if the certificate holder's disability precludes placing the certificate on the mirror, the 
66.1 	certificate must be displayed on the dashboard of the vehicle. No part of the certificate may 
66.2 	be obscured.
66.3 	(c) Notwithstanding paragraph (a), clauses (1), (2), and (3), this section does not permit 
66.4 	parking in areas prohibited by sections 169.32 and 169.34, in designated no parking spaces, 
66.5 	or in parking spaces reserved for specified purposes or vehicles. A local governmental unit 
66.6 	may, by ordinance, prohibit parking on any street or highway to create a fire lane, or to 
66.7 	accommodate heavy traffic during morning and afternoon rush hours and these ordinances 
66.8 	also apply to physically disabled persons.

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

66.10 	Sec. 56. Minnesota Statutes 2016, section 169.345, subdivision 3, is amended to read:
66.11 		Subd. 3.Identifying certificate. (a) The commissioner shall issue (1) immediately, a 
66.12 	permit valid for 30 days if the person is eligible for the certificate issued under this section 
66.13 	and (2) an identifying certificate for a vehicle described in section 168.021, subdivision 1, 
66.14 	paragraph (a), when a physically disabled applicant submits proof of physical disability 
66.15 	under subdivision 2a. The commissioner shall design separate certificates for persons with 
66.16 	permanent and temporary disabilities that can be readily distinguished from each other from 
66.17 	outside a vehicle at a distance of 25 feet or, in the case of a motorcycle or a motorized 
66.18 	bicycle, can be readily secured to the motorcycle or motorized bicycle. An applicant may 
66.19 	be issued up to two certificates if the applicant has not been issued disability plates under 
66.20 	section 168.021.
66.21 	(b) The operator of a vehicle displaying a certificate has the parking privileges provided 
66.22 	in subdivision 1 only while the vehicle is actually parked while transporting a physically 
66.23 	disabled person.
66.24 	(c) The commissioner shall cancel all certificates issued to an applicant who fails to 
66.25 	comply with the requirements of this subdivision.

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

66.27 	Sec. 57. Minnesota Statutes 2016, section 169.442, subdivision 5, is amended to read:
66.28 		Subd. 5.White strobe lamps on certain buses transporting children. (a) 
66.29 	Notwithstanding section 169.55, subdivision 1, or 169.57, subdivision 3, paragraph (b), or 
66.30 	other law to the contrary, a school bus that is subject to and complies with the equipment 
66.31 	requirements of subdivision 1 and section 169.441, subdivision 1, or a Head Start bus that 
67.1 	is not a type III vehicle defined in section 169.011, subdivision 71, may be equipped with 
67.2 	a flashing strobe lamp. The lamp may be used only as provided in this subdivision.
67.3 	(b) The lamp must be permanently mounted on the longitudinal centerline of the bus 
67.4 	roof not less than two feet forward of the rear roof edge.
67.5 	(c) The strobe lamp may be lighted only when atmospheric conditions or terrain restrict 
67.6 	the visibility of school bus lamps and signals or Head Start bus lamps and signals so as to 
67.7 	require use of the bright strobe lamp to alert motorists to the presence of the school bus or 
67.8 	Head Start bus. A strobe lamp may not be lighted unless the school bus or Head Start bus 
67.9 	is actually being used as a school bus or Head Start bus.

67.10 	Sec. 58. Minnesota Statutes 2016, section 169.443, subdivision 2, is amended to read:
67.11 		Subd. 2.Use of stop-signal arm. (a) The stop-signal arm system of a school bus must 
67.12 	be used in conjunction with the flashing red signals only when the school bus is stopped on 
67.13 	a street or highway to load or unload school children.
67.14 	(b) A local authority, including the governing body of an Indian tribe, may by ordinance 
67.15 	require that a school bus activate the stop-signal arm system and flashing red signals while 
67.16 	stopped to unload school children at a location other than a location on a street or highway. 
67.17 	The ordinance must designate each location where the requirement is imposed. The 
67.18 	requirement is effective only if the local authority has erected signs at or near the location 
67.19 	to provide adequate notice that other vehicles are required to obey section 169.444, 
67.20 	subdivision 1, when those signals are activated.
67.21 	(c) A school bus driver is prohibited from loading or unloading passengers in a designated 
67.22 	right-turn lane or in a lane immediately adjacent to a designated right-turn lane unless:
67.23 	(1) a school bus stop designated by the district transportation safety director is located 
67.24 	in the right-turn lane;
67.25 	(2) the driver stops the bus at the extreme right side of the right-turn lane; and
67.26 	(3) the driver activates the prewarning flashing amber signals, flashing red signals, and 
67.27 	stop-signal arm, unless the school board or its designee, based on safety considerations, 
67.28 	provides written direction to the driver not to do so.

68.1 	Sec. 59. Minnesota Statutes 2016, section 169.444, subdivision 2, is amended to read:
68.2 		Subd. 2.Violations by drivers; penalties. (a) A person who fails to stop a vehicle or 
68.3 	to keep it stopped, as required in subdivision 1, or who violates subdivision 1a, is guilty of 
68.4 	a misdemeanor punishable by a fine of not less than $300 $500.
68.5 	(b) A person is guilty of a gross misdemeanor if the person fails to stop a motor vehicle 
68.6 	or to keep it stopped, as required in subdivision 1, or who violates subdivision 1a, and 
68.7 	commits either or both of the following acts:
68.8 	(1) passes or attempts to pass the school bus in a motor vehicle on the right-hand, 
68.9 	passenger-door side of the bus; or
68.10 	(2) passes or attempts to pass the school bus in a motor vehicle when a school child is 
68.11 	outside of and on the street or highway used by the school bus or on the adjacent sidewalk.

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

68.14 	Sec. 60. Minnesota Statutes 2016, section 169.449, subdivision 1, is amended to read:
68.15 		Subdivision 1.Rules. The commissioner of public safety shall adopt rules governing 
68.16 	the operation of school buses used for transportation of school children, when owned or 
68.17 	operated by a school or privately owned and operated under a contract with a school, and 
68.18 	these rules must be made a part of that contract by reference. Each school, its officers and 
68.19 	employees, and each person employed under the contract is subject to these rules.

68.20 	Sec. 61. Minnesota Statutes 2016, section 169.4501, subdivision 1, is amended to read:
68.21 		Subdivision 1.National standards adopted. Except as provided in sections 169.4502
68.22 	and 169.4503, the construction, design, equipment, and color of types A, B, C, D school 
68.23 	buses and multifunction school activity buses used for the transportation of school children 
68.24 	shall meet the requirements of the "bus body and chassis specifications" in the 2010 most 
68.25 	recent edition of the "National School Transportation Specifications and Procedures" adopted 
68.26 	by the National Congress on School Transportation. Except as provided in section 169.4504, 
68.27 	the construction, design, and equipment of types A, B, C, D school buses and multifunction 
68.28 	school activity buses used for the transportation of students with disabilities also shall meet 
68.29 	the requirements of the "specially equipped school bus specifications" in the 2010 National 
68.30 	School Transportation Specifications and Procedures. The "bus body and chassis 
68.31 	specifications" and "specially equipped school bus specifications" sections of the 2010 most 
68.32 	recent edition of the "National School Transportation Specifications and Procedures," 
69.1 	adopted by the Fifteenth National Congress on School Transportation, are incorporated by 
69.2 	reference in this chapter.

69.3 	Sec. 62. Minnesota Statutes 2016, section 169.4501, subdivision 2, is amended to read:
69.4 		Subd. 2.Applicability. (a) The standards adopted in this section and sections 169.4502
69.5 	and 169.4503, govern the construction, design, equipment, and color of school buses used 
69.6 	for the transportation of school children, when owned or leased and operated by a school 
69.7 	or privately owned or leased and operated under a contract with a school. Each school, its 
69.8 	officers and employees, and each person employed under the contract is subject to these 
69.9 	standards.
69.10 	(b) The standards apply to school buses manufactured after December 31, 2012 August 
69.11 	1 of the year following a year in which a revised edition of the National School Transportation 
69.12 	Specifications and Procedures is adopted. Buses complying with the standards when 
69.13 	manufactured need not comply with standards established later except as specifically provided 
69.14 	for by law.
69.15 	(c) A school bus manufactured on or before December 31, 2012, the date provided by 
69.16 	paragraph (b) must conform to the Minnesota standards in effect on the date the vehicle 
69.17 	was manufactured except as specifically provided for in law.
69.18 	(d) A new bus body may be remounted on a used chassis provided that the remounted 
69.19 	vehicle meets state and federal standards for new buses which are current at the time of the 
69.20 	remounting. Permission must be obtained from the commissioner of public safety before 
69.21 	the remounting is done. A used bus body may not be remounted on a new or used chassis.

69.22 	Sec. 63. Minnesota Statutes 2016, section 169.4503, subdivision 4, is amended to read:
69.23 		Subd. 4.Certification.  Upon request, a body manufacturer, or school bus dealer, or 
69.24 	certified Minnesota commercial vehicle inspector who is also an employee of an organization 
69.25 	purchasing a school bus shall must provide preliminary certification to the Department of 
69.26 	Public Safety that the product meets Minnesota standards. Final certification will be granted 
69.27 	within 30 days upon reinspection by the Department of Public Safety.

69.28 	Sec. 64. Minnesota Statutes 2016, section 169.4503, subdivision 7, is amended to read:
69.29 		Subd. 7.Floor construction. The metal floor shall must be covered with plywood. The 
69.30 	plywood shall must be at least 19/32 five-ply nominal five-eighths inches thick, and must 
69.31 	equal or exceed properties of exterior-type softwood plywood, grade C-D, as specified in 
69.32 	product the standard PSI-I83 issued by the United States Department of Commerce. All of 
70.1 	the plywood's exposed edges must be sealed. Type A-I buses must be equipped with nominal 
70.2 	one-half inch thick plywood or an equivalent material that meets the requirements of this 
70.3 	subdivision. Equivalent material may be used to replace plywood, provided it has insulation 
70.4 	R value, deterioration, sound abatement, and moisture resistance properties that are equal 
70.5 	to or exceed the properties of the plywood it is replacing. The floor shall must be level from 
70.6 	front to back, and side to side, except in wheel housing, toe board, and driver's seat platform 
70.7 	areas.

70.8 	Sec. 65. Minnesota Statutes 2016, section 169.4503, subdivision 14, is amended to read:
70.9 		Subd. 14.Insulation. (a) Thermal insulation is required. It shall be fire-resistant, UL 
70.10 	approved, with minimum R-value of 5.5. Insulation shall be installed so as to prevent 
70.11 	sagging.
70.12 	(b) Floor insulation is required. It shall be five-ply nominal five-eighths-inch-thick 
70.13 	plywood, and shall equal or exceed properties of the exterior-type softwood plywood, C-D 
70.14 	Grade, as specified in the standard issued by United States Department of Commerce. All 
70.15 	exposed edges on plywood shall be sealed. Type A-I buses shall be equipped with nominal 
70.16 	one-half-inch-thick plywood or equivalent material meeting the above requirements. 
70.17 	Equivalent material may be used to replace plywood, provided it has an equal or greater 
70.18 	insulation R value, deterioration, sound abatement, and moisture resistance properties.

70.19 	Sec. 66. Minnesota Statutes 2016, section 169.4503, subdivision 23, is amended to read:
70.20 		Subd. 23.Windows. (a) Windshield, entrance, and rear emergency exit doors must be 
70.21 	of approved safety glass. Laminated or tempered glass (AS-2 or AS-3) is permitted in all 
70.22 	other windows. All glass shall be federally approved and marked as provided in section 
70.23 	169.74. The windshield may be of uniform tint throughout or may have a horizontal gradient 
70.24 	band starting slightly above the line of vision and gradually decreasing in light transmission 
70.25 	to 20 percent or less at the top of the windshield.
70.26 	(b) The use of tinted glass, as approved by section 169.71, is permitted on side windows 
70.27 	and rear windows except for the entrance door, the first window behind the service door,
70.28 	and the window to the left of the driver. The window to the left of the driver, and the upper 
70.29 	service door windows, and the window immediately behind the entrance door must be 
70.30 	thermal glass. Regardless of a bus's date of manufacture, the window immediately behind 
70.31 	the entrance door does not need to be made of thermal glass. The window to the left of the 
70.32 	driver for type A buses need not be thermal glass.

71.1 	Sec. 67. Minnesota Statutes 2016, section 169.4503, subdivision 30, is amended to read:
71.2 		Subd. 30.Video or mobile surveillance systems. Camera heads for video or mobile 
71.3 	surveillance may be mounted in the driver compartment area, midbus, or on a rear interior 
71.4 	bulkhead in the student passenger area. For buses manufactured or retrofitted with a 
71.5 	surveillance system after December 31, 2012, cameras mounted midbus must be parallel 
71.6 	to a seat back, must not have any sharp edges, must not extend outward more than three 
71.7 	3-1/2 inches, and must be located within 24 inches of the top of the side window of the bus.

71.8 	Sec. 68. Minnesota Statutes 2016, section 169.64, subdivision 8, is amended to read:
71.9 		Subd. 8.Strobe lamp. (a) Notwithstanding sections 169.55, subdivision 1; 169.57, 
71.10 	subdivision 3, paragraph (b); or any other law to the contrary, a vehicle may be equipped 
71.11 	with a 360-degree flashing strobe lamp that emits a white light with a flash rate of 60 to 
71.12 	120 flashes a minute, and the lamp may be used as provided in this subdivision, if the vehicle 
71.13 	is:
71.14 	(1) a school bus that is subject to and complies with the equipment requirements of 
71.15 	sections 169.441, subdivision 1, and 169.442, subdivision 1, or a Head Start bus that is not 
71.16 	a type III vehicle as defined in section 169.011, subdivision 71. The lamp shall be 
71.17 	permanently mounted on the longitudinal centerline of the bus roof not less than two feet 
71.18 	nor more than seven feet forward of the rear roof edge. It shall must operate from a separate 
71.19 	switch containing an indicator lamp to show when the strobe lamp is in use. The strobe 
71.20 	lamp may be lighted only when atmospheric conditions or terrain restrict the visibility of 
71.21 	school bus lamps and signals or Head Start bus lamps and signals so as to require use of 
71.22 	the bright strobe lamp to alert motorists to the presence of the school bus or Head Start bus. 
71.23 	A strobe lamp may not be lighted unless the school bus or Head Start bus is actually being 
71.24 	used as a school bus or Head Start bus; or
71.25 	(2) a road maintenance vehicle owned or under contract to the Department of 
71.26 	Transportation or a road authority of a county, home rule or statutory city, or town, but the 
71.27 	strobe lamp may only be operated while the vehicle is actually engaged in snow removal 
71.28 	during daylight hours.
71.29 	(b) Notwithstanding sections 169.55, subdivision 1; 169.57, subdivision 3, paragraph 
71.30 	(b); or any other law to the contrary, a vehicle may be equipped with a 360-degree flashing 
71.31 	strobe lamp that emits an amber light with a flash rate of 60 to 120 flashes a minute, and 
71.32 	the lamp may be used as provided in this subdivision, if the vehicle is a rural mail carrier 
71.33 	vehicle, provided that the strobe lamp is mounted at the highest practicable point on the 
72.1 	vehicle. The strobe lamp may only be operated while the vehicle is actually engaged during 
72.2 	daylight hours in the delivery of mail to residents on a rural mail route.
72.3 	(c) A strobe lamp authorized by this section shall be of a double flash type certified to 
72.4 	the commissioner of public safety by the manufacturer as being weatherproof and having 
72.5 	a minimum effective light output of 200 candelas as measured by the Blondel-Rey formula.

72.6 	Sec. 69. Minnesota Statutes 2016, section 169.80, subdivision 1, is amended to read:
72.7 		Subdivision 1.Limitations; misdemeanor. (a) It is a misdemeanor for a person to drive 
72.8 	or move, or for the owner to cause or knowingly permit to be driven or moved, on a highway 
72.9 	a vehicle or vehicles of a size or weight exceeding the limitations stated in sections 169.80
72.10 	to 169.88, or otherwise in violation of sections 169.80 to 169.88, other than section 169.81, 
72.11 	subdivision 5a, and the maximum size and weight of vehicles as prescribed in sections 
72.12 	169.80 to 169.88 shall be lawful throughout this state, and local authorities shall have no 
72.13 	power or authority to alter these limitations except as express authority may be granted in 
72.14 	sections 169.80 to 169.88.
72.15 	(b) When all the axles of a vehicle or combination of vehicles are weighed separately 
72.16 	the sum of the weights of the axles so weighed shall be evidence of the total gross weight 
72.17 	of the vehicle or combination of vehicles so weighed.
72.18 	(c) When each of the axles of any group that contains two or more consecutive axles of 
72.19 	a vehicle or combination of vehicles have been weighed separately the sum of the weights 
72.20 	of the axles so weighed shall be evidence of the total gross weight on the group of axles so 
72.21 	weighed.
72.22 	(d) When, in any group of three or more consecutive axles of a vehicle or combination 
72.23 	of vehicles any axles have been weighed separately and two or more axles consecutive to 
72.24 	each other in the group have been weighed together, the sum of the weights of the axles 
72.25 	weighed separately and the axles weighed together shall be evidence of the total gross weight 
72.26 	of the group of axles so weighed.
72.27 	(e) The provisions of sections 169.80 to 169.88 governing size, weight, and load shall
72.28 	do not apply to a fire apparatus, or to a vehicle operated under the terms of a special permit 
72.29 	issued as provided by law.

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

73.1 	Sec. 70. Minnesota Statutes 2016, section 169.829, is amended by adding a subdivision 
73.2 	to read:
73.3 		Subd. 4.Certain emergency vehicles. The provisions of sections 169.80 to 169.88 
73.4 	governing size, weight, and load do not apply to a fire apparatus, a law enforcement special 
73.5 	response vehicle, or a licensed land emergency ambulance service vehicle.

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

73.7 	Sec. 71. [169.8295] WEIGHT LIMITS; VEHICLES TRANSPORTING MILK.
73.8 		Subdivision 1.Weight limits increase. (a) The weight limitations under sections 169.823 
73.9 	to 169.829 are increased by ten percent for a single-unit vehicle transporting fluid milk from 
73.10 	the point of production to:
73.11 	(1) another point of production for additional loading; or
73.12 	(2) the point of first processing.
73.13 	(b) Notwithstanding sections 169.824, subdivision 1, paragraph (d); 169.826, subdivision 
73.14 	3; or other law to the contrary, a permit is not required to operate a vehicle under this section.
73.15 	(c) The seasonal weight increases under section 169.826, subdivision 1, do not apply to 
73.16 	a vehicle operated under this section.
73.17 		Subd. 2.Requirements; restrictions. A vehicle operated under this section:
73.18 	(1) is subject to seasonal load restrictions under section 169.87, except as otherwise 
73.19 	provided under section 169.87, subdivision 4;
73.20 	(2) is subject to bridge load limits posted under section 169.84; and
73.21 	(3) must not be operated with a load that exceeds the tire manufacturer's recommended 
73.22 	load, the manufacturer's gross vehicle weight rating as affixed to the vehicle, or other 
73.23 	certification of gross vehicle weight rating under Code of Federal Regulations, title 49, 
73.24 	sections 567.4 to 567.7.

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

73.26 	Sec. 72. Minnesota Statutes 2016, section 169.865, subdivision 3, is amended to read:
73.27 		Subd. 3.Requirements; restrictions. (a) A vehicle or combination of vehicles operating 
73.28 	under this section:
73.29 	(1) is subject to axle weight limitations under section 169.824, subdivision 1;
74.1 	(2) is subject to seasonal load restrictions under section 169.87;
74.2 	(3) is subject to bridge load limits posted under section 169.84;
74.3 	(4) may only be operated on paved streets and highways other than interstate highways;
74.4 	(5) may not be operated with loads that exceed the manufacturer's gross vehicle weight 
74.5 	rating as affixed to the vehicle, or other certification of gross vehicle weight rating complying 
74.6 	with Code of Federal Regulations, title 49, sections 567.4 to 567.7;
74.7 	(6) must be issued a permit from each road authority having jurisdiction over a road on 
74.8 	which the vehicle is operated, if required;
74.9 	(7) must comply with the requirements of section 169.851, subdivision 4; and
74.10 	(8) must have brakes on all wheels.
74.11 	(b) The percentage allowances for exceeding gross weights if transporting unfinished 
74.12 	forest products under section 168.013, subdivision 3, paragraph (b), or for the first haul of 
74.13 	unprocessed or raw farm products or unfinished forest products under section 168.013, 
74.14 	subdivision 3, paragraph (d), clause (3), do not apply to a vehicle or combination of vehicles 
74.15 	operated under this section.
74.16 	(c) Notwithstanding paragraph (a), clause (4), a vehicle or combination of vehicles 
74.17 	hauling fluid milk under a permit issued by the commissioner of transportation may also 
74.18 	operate on interstate highways as provided under United States Code, title 23, section 127.

74.19 	Sec. 73. [169.869] ROAD CONSTRUCTION MATERIALS SPECIAL PERMIT.
74.20 		Subdivision 1.Definition. For purposes of this section, "road construction materials" 
74.21 	means street or highway construction materials, including but not limited to aggregate 
74.22 	material as defined in section 298.75, subdivision 1, paragraph (a), hot mix asphalt, plastic 
74.23 	concrete, cementitious materials, concrete admixtures, asphalt cement, and recycled road 
74.24 	materials.
74.25 		Subd. 2.Six-axle vehicles. (a) The commissioner of transportation may issue an annual 
74.26 	permit authorizing a vehicle or combination of vehicles with a total of six or more axles to 
74.27 	haul road construction materials and be operated with a gross vehicle weight of up to:
74.28 	(1) 90,000 pounds; and
74.29 	(2) 99,000 pounds during the period set by the commissioner under section 169.826, 
74.30 	subdivision 1.
75.1 	(b) The fee for a permit issued under this subdivision is $300, or a proportional amount 
75.2 	as provided in section 169.86, subdivision 5.
75.3 		Subd. 3.Seven-axle vehicles. (a) The commissioner of transportation may issue an 
75.4 	annual permit authorizing a vehicle or combination of vehicles with a total of seven or more 
75.5 	axles to haul road construction materials and be operated with a gross vehicle weight of up 
75.6 	to:
75.7 	(1) 97,000 pounds; and
75.8 	(2) 99,000 pounds during the period set by the commissioner under section 169.826, 
75.9 	subdivision 1.
75.10 	(b) The fee for a permit issued under this subdivision is $500, or a proportional amount 
75.11 	as provided in section 169.86, subdivision 5.
75.12 		Subd. 4.Authority; restrictions. (a) A permit issued by the commissioner under this 
75.13 	section is valid for operation on highways regardless of jurisdiction, subject to paragraph 
75.14 	(b).
75.15 	(b) A vehicle or combination of vehicles operating under this section:
75.16 	(1) may only be operated on paved or unpaved streets and highways, other than interstate 
75.17 	highways;
75.18 	(2) must comply with the requirements and restrictions in section 169.865, subdivision 
75.19 	3, paragraph (a), clauses (1) to (3), (5), (7), and (8); and
75.20 	(3) must be operated in compliance with truck route requirements and vehicle weight 
75.21 	restrictions, as established under section 169.87, subdivision 1, by a local road authority or 
75.22 	the commissioner.
75.23 		Subd. 5.Revenues. Revenue from the permits issued by the commissioner under this 
75.24 	section must be deposited in the town bridge account. Revenue deposited under this 
75.25 	subdivision is available to inspect and post weight limits for town bridges.
75.26 		Subd. 6.Expiration date. Upon request of the permit applicant, the expiration date for 
75.27 	a permit issued under this section must be the same as the expiration date of the permitted 
75.28 	vehicle's registration.
75.29 		Subd. 7.Permit information. The commissioner must make information available to 
75.30 	local road authorities on an Internet Web site that identifies permit issuances under this 
75.31 	section and the counties in which a vehicle with a permit is intended to be operated.
76.1 		Subd. 8.Local preferred routes. A local road authority may identify local preferred 
76.2 	routes for operating a vehicle on local streets and highways under a permit issued in this 
76.3 	section. A holder of a permit issued in this section and any person seeking to apply for a 
76.4 	permit are encouraged to:
76.5 	(1) upon request of a local road authority, provide comment on identification of preferred 
76.6 	routes; and
76.7 	(2) make reasonable efforts to operate a vehicle on the preferred routes when operating 
76.8 	under the permit.

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

76.10 	Sec. 74. Minnesota Statutes 2016, section 169.871, subdivision 1, is amended to read:
76.11 		Subdivision 1.Civil liability. (a) The owner or lessee of a vehicle that is operated with 
76.12 	a gross weight in excess of a weight limit imposed under sections 169.823 to 169.829
76.13 	169.8295, 169.84 to 169.851, and 169.87 or a shipper who ships or tenders goods for 
76.14 	shipment in a single truck or combination vehicle that exceeds a weight limit imposed under 
76.15 	sections 169.823 to 169.829 169.8295, 169.84 to 169.851, and 169.87 is liable for a civil 
76.16 	penalty as follows:
76.17 	(1) if the total gross excess weight is not more than 1,000 pounds, one cent per pound 
76.18 	for each pound in excess of the legal limit;
76.19 	(2) if the total gross excess weight is more than 1,000 pounds but not more than 3,000 
76.20 	pounds, $10 plus five cents per pound for each pound in excess of 1,000 pounds;
76.21 	(3) if the total gross excess weight is more than 3,000 pounds but not more than 5,000 
76.22 	pounds, $110 plus ten cents per pound for each pound in excess of 3,000 pounds;
76.23 	(4) if the total gross excess weight is more than 5,000 pounds but not more than 7,000 
76.24 	pounds, $310 plus 15 cents per pound for each pound in excess of 5,000 pounds;
76.25 	(5) if the total gross excess weight is more than 7,000 pounds, $610 plus 20 cents per 
76.26 	pound for each pound in excess of 7,000 pounds.
76.27 	(b) Notwithstanding any other law to the contrary, if a person found guilty of a violation 
76.28 	of a weight limit imposed under this section or sections 169.823 to 169.829 169.8295, 
76.29 	169.84 to 169.851, or 169.87 is also found by the court to have knowingly and 
76.30 	contemporaneously attempted to evade a fixed weigh station or to otherwise avoid weighing 
76.31 	by means of stationary scales under section 169.85 or other law, the court shall must impose 
76.32 	a penalty of twice the amount otherwise authorized under paragraph (a).
77.1 	(c) Any penalty imposed upon a defendant under this subdivision shall must not exceed 
77.2 	the penalty prescribed by this subdivision. Any fine paid by the defendant in a criminal 
77.3 	overweight action that arose from the same overweight violation shall be is applied toward 
77.4 	payment of the civil penalty under this subdivision. A peace officer or Department of Public 
77.5 	Safety employee described in section 299D.06 who cites a driver for a violation of the 
77.6 	weight limitations established by sections 169.81 to 169.851 and 169.87shall must give 
77.7 	written notice to the driver that the driver or another may also be liable for the civil penalties 
77.8 	provided herein in the same or separate proceedings.
77.9 	(d) A penalty imposed upon the owner or lessee of a vehicle that is based on violations 
77.10 	identified by the use of shippers' weight records under section 169.872 must not exceed an 
77.11 	aggregate of $10,000.

77.12 	Sec. 75. Minnesota Statutes 2016, section 171.02, subdivision 2b, is amended to read:
77.13 		Subd. 2b.Exception for type III vehicle drivers. (a) Notwithstanding subdivision 2, 
77.14 	the holder of a class A, B, C, or D driver's license, without a school bus endorsement, may 
77.15 	operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h), under 
77.16 	the conditions in paragraphs (b) through (o) this subdivision.
77.17 	(b) The operator is an employee of the entity that owns, leases, or contracts for the school 
77.18 	bus.
77.19 	(c) The operator's employer has adopted and implemented a policy that provides for 
77.20 	annual training and certification of the operator in:
77.21 	(1) safe operation of a type III vehicle;
77.22 	(2) understanding student behavior, including issues relating to students with disabilities;
77.23 	(3) encouraging orderly conduct of students on the bus and handling incidents of 
77.24 	misconduct appropriately;
77.25 	(4) knowing and understanding relevant laws, rules of the road, and local school bus 
77.26 	safety policies;
77.27 	(5) handling emergency situations;
77.28 	(6) proper use of seat belts and child safety restraints;
77.29 	(7) performance of pretrip vehicle inspections;
77.30 	(8) safe loading and unloading of students, including, but not limited to:
78.1 	(i) utilizing a safe location for loading and unloading students at the curb, on the nontraffic 
78.2 	side of the roadway, or at off-street loading areas, driveways, yards, and other areas to 
78.3 	enable the student to avoid hazardous conditions;
78.4 	(ii) refraining from loading and unloading students in a vehicular traffic lane, on the 
78.5 	shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;
78.6 	(iii) avoiding a loading or unloading location that would require a pupil to cross a road, 
78.7 	or ensuring that the driver or an aide personally escort the pupil across the road if it is not 
78.8 	reasonably feasible to avoid such a location;
78.9 	(iv) placing the type III vehicle in "park" during loading and unloading; and
78.10 	(v) escorting a pupil across the road under item (iii) only after the motor is stopped, the 
78.11 	ignition key is removed, the brakes are set, and the vehicle is otherwise rendered immobile; 
78.12 	and
78.13 	(9) compliance with paragraph (k), concerning reporting certain convictions to the 
78.14 	employer within ten days of the date of conviction.
78.15 	(d) A background check or background investigation of the operator has been conducted 
78.16 	that meets the requirements under section 122A.18, subdivision 8, or 123B.03 for school 
78.17 	district employees; section 144.057 or chapter 245C for day care employees; or section 
78.18 	171.321, subdivision 3, for all other persons operating a type III vehicle under this 
78.19 	subdivision.
78.20 	(e) Operators shall submit to a physical examination as required by section 171.321, 
78.21 	subdivision 2.
78.22 	(f) The operator's employer requires preemployment drug testing of applicants for 
78.23 	operator positions. Current operators must comply with the employer's policy under section 
78.24 	181.951, subdivisions 2, 4, and 5. Notwithstanding any law to the contrary, the operator's 
78.25 	employer may use a Breathalyzer or similar device to fulfill random alcohol testing 
78.26 	requirements.
78.27 	(g) The operator's driver's license is verified annually by the entity that owns, leases, or 
78.28 	contracts for the type III vehicle as required under section 171.321, subdivision 5.
78.29 	(h) A person who sustains a conviction, as defined under section 609.02, of violating 
78.30 	section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked under 
78.31 	sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of violating 
78.32 	or whose driver's license is revoked under a similar statute or ordinance of another state, is 
78.33 	precluded from operating a type III vehicle for five years from the date of conviction.
79.1 	(i) A person who has ever been convicted of a disqualifying offense as defined in section 
79.2 	171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under this 
79.3 	subdivision.
79.4 	(j) A person who sustains a conviction, as defined under section 609.02, of a moving 
79.5 	offense in violation of chapter 169 within three years of the first of three other moving 
79.6 	offenses is precluded from operating a type III vehicle for one year from the date of the last 
79.7 	conviction.
79.8 	(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) while 
79.9 	employed by the entity that owns, leases, or contracts for the school bus, shall report the 
79.10 	conviction to the employer within ten days of the date of the conviction.
79.11 	(l) An operator of a type III vehicle whose driver's license is suspended, revoked, 
79.12 	canceled, or disqualified by Minnesota, another state, or another jurisdiction must notify 
79.13 	the operator's employer in writing of the suspension, revocation, cancellation, lost privilege, 
79.14 	or disqualification. The operator must notify the operator's employer before the end of the 
79.15 	business day immediately following the day the operator received notice of the suspension, 
79.16 	revocation, cancellation, lost privilege, or disqualification.
79.17 	(m) Students riding the type III vehicle must have training required under section 
79.18 	123B.90, subdivision 2.
79.19 	(m) (n) Documentation of meeting the requirements listed in this subdivision must be 
79.20 	maintained under separate file at the business location for each type III vehicle operator. 
79.21 	The business manager, school board, governing body of a nonpublic school, or any other 
79.22 	entity that owns, leases, or contracts for the type III vehicle operating under this subdivision 
79.23 	is responsible for maintaining these files for inspection.
79.24 	(n) (o) The type III vehicle must bear a current certificate of inspection issued under 
79.25 	section 169.451.
79.26 	(o) (p) An employee of a school or of a school district, who is not employed for the sole 
79.27 	purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).

79.28 	Sec. 76. Minnesota Statutes 2016, section 171.06, subdivision 2a, is amended to read:
79.29 		Subd. 2a.Two-wheeled vehicle endorsement fee. (a) The fee for any duplicate driver's 
79.30 	license obtained for the purpose of adding a two-wheeled vehicle endorsement is increased 
79.31 	by $18.50 for each first such duplicate license and $13 for each renewal thereof. The 
79.32 	additional fee must be paid into the state treasury and credited as follows:
80.1 	(1) $11 of the additional fee for each first duplicate license, and $7 of the additional fee 
80.2 	for each renewal, must be credited to the motorcycle safety fund, which is hereby created; 
80.3 	provided that ten percent of fee receipts in excess of $750,000 in a fiscal year must be 
80.4 	credited to the general fund.
80.5 	(2) The remainder of the additional fee must be credited to the general fund.
80.6 	(b) All application forms prepared by the commissioner for two-wheeled vehicle 
80.7 	endorsements must clearly state the amount of the total fee that is dedicated to the motorcycle 
80.8 	safety fund.

80.9 	Sec. 77. Minnesota Statutes 2016, section 171.061, subdivision 3, is amended to read:
80.10 		Subd. 3.Application. An applicant may file an application with an agent. The agent 
80.11 	shall receive and accept applications in accordance with the laws and rules of the Department 
80.12 	of Public Safety for a driver's license, restricted license, duplicate license, instruction permit, 
80.13 	Minnesota identification card, or motorized bicycle operator's permit. Application records 
80.14 	must be maintained at the office of the agent in a manner that complies with sections 13.05, 
80.15 	subdivision 5, and 13.055. As an alternative to paper copy storage, an agent may retain 
80.16 	records and documents in a secure electronic medium that complies with the security 
80.17 	requirements under the United States Federal Bureau of Investigation, Criminal Justice 
80.18 	Information Services Division, Policy 5.4 or any successor policy, provided 60 days have 
80.19 	elapsed since the transaction and subject to standards established by the commissioner. The 
80.20 	agent is responsible for all costs associated with the conversion to electronic records and 
80.21 	maintenance of the electronic storage medium, including the destruction of existing paper 
80.22 	records after conversion to the electronic format. All queries and responses in the secure 
80.23 	electronic medium, and all actions in which data are entered, updated, accessed, or shared 
80.24 	or disseminated by the agent must be contained in a data audit trail. Data contained in the 
80.25 	audit trail are public to the extent the data are not otherwise classified under this section.

80.26 	Sec. 78. Minnesota Statutes 2016, section 171.12, subdivision 6, is amended to read:
80.27 		Subd. 6.Certain convictions not recorded. (a) Except as provided in paragraph (c), 
80.28 	the department shall must not keep on the record of a driver any conviction for a violation 
80.29 	of a speed limit of 55 miles per hour unless the violation consisted of a speed greater than 
80.30 	ten miles per hour in excess of the speed limit.
80.31 	(b) Except as provided in paragraph (c), the department shall must not keep on the record 
80.32 	of a driver any conviction for a violation of a speed limit of 60 miles per hour unless the 
80.33 	violation consisted of a speed greater than:
81.1 	(1) ten miles per hour in excess of the speed limit, for any violation occurring on or after 
81.2 	August 1, 2012, and before August 1, 2014; or
81.3 	(2) five miles per hour in excess of the speed limit, for any violation occurring on or 
81.4 	after August 1, 2014.
81.5 	(c) This subdivision does not apply to (1) a violation that occurs in a commercial motor 
81.6 	vehicle, or (2) a violation committed by a holder of a class A, B, or C commercial driver's 
81.7 	license or commercial driver learner's permit, without regard to whether the violation was 
81.8 	committed in a commercial motor vehicle or another vehicle.

81.9 	Sec. 79. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
81.10 	read:
81.11 		Subd. 7a.Abandoned and discontinued. "Abandoned and discontinued" means an 
81.12 	outdoor advertising device that ceases to display advertising copy for a minimum of one 
81.13 	year and is not otherwise being actively marketed to display advertising copy.

81.14 	Sec. 80. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
81.15 	read:
81.16 		Subd. 17a.Conforming. "Conforming" means an outdoor advertising device that 
81.17 	complies with the requirements of this chapter.

81.18 	Sec. 81. Minnesota Statutes 2016, section 173.02, subdivision 18, is amended to read:
81.19 		Subd. 18.Commercial or industrial activity. (a) "Commercial or industrial activity" 
81.20 	for the purposes of unzoned commercial or industrial areas means an activity generally 
81.21 	recognized as commercial or industrial by zoning authorities in this state, except that.
81.22 	(b) None of the following activities shall be considered commercial or industrial:
81.23 	(1) outdoor advertising devices.;
81.24 	(2) agricultural, forestry, ranching, grazing, farming and related activities, including, 
81.25 	but not limited to, temporary wayside fresh produce stands.;
81.26 	(3) transient or temporary activities.;
81.27 	(4) activities not visible from the main-traveled way.;
81.28 	(5) activities more than 660 feet from the nearest edge of the right-of-way.;
81.29 	(6) activities conducted in a building principally used as a residence.;
82.1 	(7) railroad tracks and minor sidings.;
82.2 	(8) advertising located on vehicles or tractor trailers;
82.3 	(9) commercial establishments or businesses that have ceased to exist or operate; or
82.4 	(10) a business created to install new outdoor advertising devices.

82.5 	Sec. 82. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
82.6 	read:
82.7 		Subd. 21a.Nonconforming. "Nonconforming" means an outdoor advertising device 
82.8 	that was lawfully erected and has been maintained lawfully but does not comply with the 
82.9 	requirements of this chapter. A nonconforming sign is one that remains in substantially the 
82.10 	same condition it was on the effective date of this chapter.

82.11 	Sec. 83. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
82.12 	read:
82.13 		Subd. 21b.Off-premise "Off-premise" means an outdoor advertising device that 
82.14 	advertises or pertains to any business, product, person, activity, event, or service that is not 
82.15 	primarily conducted, sold, manufactured, offered, or located on the property where the sign 
82.16 	is located.

82.17 	Sec. 84. Minnesota Statutes 2016, section 173.02, subdivision 23, is amended to read:
82.18 		Subd. 23.Scenic area. "Scenic area" means an area within which control and regulation 
82.19 	of the erection and maintenance of advertising devices may be exercised to the extent herein 
82.20 	provided and such areas shall include only those established as such by the commissioner 
82.21 	of transportation. Scenic area includes a scenic byway under United States Code, title 23, 
82.22 	section 162.

82.23 	Sec. 85. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to 
82.24 	read:
82.25 		Subd. 23a.Scenic byways. "Scenic byways" means roads that recognize outstanding 
82.26 	scenic, cultural, historic, natural, recreational, and archaeological qualities and landscapes 
82.27 	pursuant to United States Code, title 23, section 162.

83.1 	Sec. 86. Minnesota Statutes 2016, section 173.06, subdivision 1, is amended to read:
83.2 		Subdivision 1.Authority. The commissioner of transportation shall must adopt and 
83.3 	may modify, amend, or repeal rules governing the issuance of permits or renewals thereof 
83.4 	for the erection and maintenance of legal nonconforming advertising devices within scenic 
83.5 	areas; provided that the commissioner shall not adopt, modify, amend, or repeal any rule 
83.6 	that will impair any agreement with between the state and the federal government under 
83.7 	this chapter. The commissioner of transportation may limit the application of any rule 
83.8 	adopted by the commissioner to exclude or include in whole or in part, specified areas within 
83.9 	the scenic area based upon use, nature of the surrounding community, or such other factors 
83.10 	as may make separate classification or rule necessary or desirable.

83.11 	Sec. 87. Minnesota Statutes 2016, section 173.07, subdivision 1, is amended to read:
83.12 		Subdivision 1.Forms; content. Application for permits or renewals thereof for the 
83.13 	placement and maintenance of advertising devices within scenic areas shall must be on 
83.14 	forms prescribed by the commissioner and shall contain such information as the commissioner 
83.15 	may require. No advertising device shall be placed without the consent of the owner or 
83.16 	occupant of the land, and adequate proof of such consent shall be submitted to the 
83.17 	commissioner at the time application is made for such permits or renewals. A permit is 
83.18 	required to access state right-of-way to maintain an advertising device.

83.19 	Sec. 88. Minnesota Statutes 2016, section 173.08, is amended by adding a subdivision to 
83.20 	read:
83.21 		Subd. 3.Seed sign exemption. Crop varietal and seed corn signs adjacent to interstate 
83.22 	and primary highways may be erected if the device:
83.23 	(1) is located on demonstration plats;
83.24 	(2) is located on private property;
83.25 	(3) does not violate section 160.27 or 160.2715; and
83.26 	(4) does not reference an off-site address where the product may be sold.

83.27 	Sec. 89. Minnesota Statutes 2016, section 173.08, is amended by adding a subdivision to 
83.28 	read:
83.29 		Subd. 4.Violations; removal. The Department of Transportation may remove signs 
83.30 	that violate this section using the removal procedures under section 173.13, subdivision 11.

84.1 	Sec. 90. Minnesota Statutes 2016, section 173.13, subdivision 11, is amended to read:
84.2 		Subd. 11.Removal of advertising device for noncompliance. Advertising devices 
84.3 	erected or maintained after June 8, 1971, not complying with Laws 1971, chapter 883, and 
84.4 	not otherwise by Laws 1971, chapter 883, permitted to standthis chapter may be removed 
84.5 	by the commissioner upon 60 days prior written notice by certified mail to the owner thereof
84.6 	of the advertising device and to the owner of the real property on which suchthe advertising 
84.7 	device is located, provided that. No notice shall be is required to be given to the owner of 
84.8 	an advertising device whose name is not stated upon the advertising device or the structure 
84.9 	on which it is displayed, unless the name of such the owner is otherwise reasonably known 
84.10 	to the commissioner. The owner of the removed device is liable to the state for the costs of 
84.11 	removal. The period of such notice shall be is computed from the date of mailing. to both 
84.12 	the owner of the advertising device and the owner of the real property where the device is 
84.13 	located. The department must store a removed outdoor advertising device for a minimum 
84.14 	of 30 days prior to disposal. If the outdoor advertising device is not retrieved by the owner 
84.15 	within 30 days of removal, the department may dispose of the outdoor advertising device. 
84.16 	The state is not liable for trespass actions or sign costs for outdoor advertising devices 
84.17 	removed under this subdivision if proper notice has been served.

84.18 	Sec. 91. [173.155] CHANGEABLE ELECTRONIC VARIABLE MESSAGE SIGNS.
84.19 		Subdivision 1.Definition. For the purposes of this section, "changeable electronic 
84.20 	variable message sign" or "CEVMS" means an outdoor advertising device that contains 
84.21 	light-emitting diodes or other technology to display copy visible during the day and during 
84.22 	the night, with the copy changes initiated electronically.
84.23 		Subd. 2.Prohibition. Intermittent, animated, scrolling, full-motion video elements, or 
84.24 	moving lights are prohibited on outdoor advertising devices, including CEVMS.
84.25 		Subd. 3.Exceptions. (a) Notwithstanding subdivision 2, a CEVMS is permissible if:
84.26 	(1) the message does not change more frequently than once every six seconds;
84.27 	(2) the transition between messages or copy does not exceed two seconds in duration;
84.28 	(3) the message brightness does not exceed 0.3 foot-candles over ambient light, as 
84.29 	measured using a foot candle meter from the following distances:
84.30 	(i) for signs with a nominal face size of 12 feet by 25 feet, from 150 feet;
84.31 	(ii) for signs with a nominal face size of ten feet, six inches, by 36 feet, from 200 feet; 
84.32 	and
85.1 	(iii) for signs with a nominal face size of 14 feet by 48 feet, from 250 feet; and
85.2 	(4) the sign must not cause beams or rays of light to be directed at the traveled way if 
85.3 	the light is of such intensity or brilliance as to cause glare that impairs the vision of the 
85.4 	driver of a motor vehicle, or interfere with any driver's operation of a motor vehicle.
85.5 	(b) The brightness measurement under paragraph (a), clause (3), must be conducted at 
85.6 	least 30 minutes after sunset or at least 30 minutes before sunrise. Each CEVMS must have 
85.7 	automatic dimming technology that adjusts the device's brightness levels in response to 
85.8 	changes in ambient light.

85.9 	Sec. 92. Minnesota Statutes 2016, section 173.16, is amended by adding a subdivision to 
85.10 	read:
85.11 		Subd. 6.Stationary structure. Advertising devices must:
85.12 	(1) be stationary;
85.13 	(2) be immobile;
85.14 	(3) not have wheels; and
85.15 	(4) be incapable of relocation without a permit.

85.16 	Sec. 93. Minnesota Statutes 2016, section 173.16, is amended by adding a subdivision to 
85.17 	read:
85.18 		Subd. 7.Permanent business. (a) A business that is located in an unzoned commercial 
85.19 	or industrial area must be in existence for at least three months before a permit may be 
85.20 	issued. An outdoor advertising device erected prior to receiving a permit is subject to 
85.21 	removal.
85.22 	(b) A commercial establishment may demonstrate evidence of its existence by having 
85.23 	a Web site, a telephone number that is answered or has an answering machine identifying 
85.24 	the business, a storefront, pictorial evidence of the business, a building permit, or a lease.

85.25 	Sec. 94. [173.265] OUTDOOR ADVERTISING DEVICES; REMOVAL; 
85.26 	MAINTENANCE.
85.27 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
85.28 	the meanings given them.
85.29 	(b) "Destroyed" means that more than 50 percent of a nonconforming outdoor advertising 
85.30 	device's upright supports are physically damaged to a degree that normal repair practices 
86.1 	would require replacement of broken wooden supports or replacement of broken, bent, or 
86.2 	twisted supports for metal sign structures.
86.3 	(c) "Reasonable repair and maintenance" means customary maintenance and change of 
86.4 	a sign's copy or message, and includes replacement of existing light fixtures with energy 
86.5 	efficient fixtures or installation of other energy efficiency improvements. Reasonable repair 
86.6 	and maintenance does not include:
86.7 	(1) the addition of illumination;
86.8 	(2) repair, reinstallation, erection, or maintenance for outdoor advertising devices that 
86.9 	are destroyed, as defined under paragraph (b);
86.10 	(3) enlarging the nonconforming device;
86.11 	(4) changing the device from a wood structure to a steel or concrete structure; or
86.12 	(5) any change that would terminate nonconforming status.
86.13 	(d) "Substantial change" means any action that does not constitute reasonable repair and 
86.14 	maintenance.
86.15 		Subd. 2.Application. This section applies only to outdoor advertising devices subject 
86.16 	to state and federal regulation under United States Code, title 23, section 131, and any 
86.17 	regulations adopted under that law.
86.18 		Subd. 3.Removal. The department may remove a destroyed, abandoned, or discontinued 
86.19 	outdoor advertising device, subject to the limitations provided under this chapter.
86.20 		Subd. 4.Reasonable repair and maintenance. (a) The owner of an outdoor advertising 
86.21 	device may perform reasonable repair and maintenance on any device, provided the device 
86.22 	is not destroyed.
86.23 	(b) Any action not constituting reasonable repair and maintenance will subject the outdoor 
86.24 	advertising device to immediate removal under subdivision 3.
86.25 		Subd. 5.Substantial change. Substantial changes to outdoor advertising devices are 
86.26 	prohibited. A substantial change to a nonconforming outdoor advertising device will subject 
86.27 	the sign to immediate removal under subdivision 3.

86.28 	Sec. 95. Minnesota Statutes 2016, section 174.03, subdivision 1a, is amended to read:
86.29 		Subd. 1a.Revision of statewide multimodal transportation plan. (a) The commissioner 
86.30 	shall must revise the statewide multimodal transportation plan by January 15, 2013 2022, 
86.31 	and by January 15 of every four five years thereafter. Before final adoption of a revised 
87.1 	plan, the commissioner shall must hold a hearing to receive public comment on the 
87.2 	preliminary draft of the revised plan.
87.3 	(b) Each revised statewide multimodal transportation plan must:
87.4 	(1) incorporate the goals of the state transportation system in section 174.01;
87.5 	(2) establish objectives, policies, and strategies for achieving those goals; and
87.6 	(3) identify performance targets for measuring progress and achievement of transportation 
87.7 	system goals, objectives, or policies.

87.8 	Sec. 96. Minnesota Statutes 2016, section 174.03, subdivision 1c, is amended to read:
87.9 		Subd. 1c.Statewide highway 20-year capital investment plan. By January 15, 2013, 
87.10 	and in conjunction with Within one year of each future revision of the statewide multimodal 
87.11 	transportation plan under subdivision 1a, the commissioner shall must prepare a 20-year 
87.12 	statewide highway capital investment plan that:
87.13 	(1) incorporates performance measures and targets for assessing progress and achievement 
87.14 	of the state's transportation goals, objectives, and policies identified in this chapter for the 
87.15 	state trunk highway system, and those goals, objectives, and policies established in the 
87.16 	statewide multimodal transportation plan. Performance targets must be based on objectively 
87.17 	verifiable measures, and address, at a minimum, preservation and maintenance of the 
87.18 	structural condition of state highway bridges and pavements, safety, and mobility;
87.19 	(2) summarizes trends and impacts for each performance target over the past five years;
87.20 	(3) summarizes the amount and analyzes the impact of the department's capital 
87.21 	investments and priorities over the past five years on each performance target, including a 
87.22 	comparison of prior plan projected costs with actual costs;
87.23 	(4) identifies the investments required to meet the established performance targets over 
87.24 	the next 20-year period;
87.25 	(5) projects available state and federal funding over the 20-year period, including any 
87.26 	unique, competitive, time-limited, or focused funding opportunities;
87.27 	(6) identifies strategies to ensure the most efficient use of existing transportation 
87.28 	infrastructure, and to maximize the performance benefits of projected available funding;
87.29 	(7) establishes investment priorities for projected funding, including a schedule of major 
87.30 	projects or improvement programs for the 20-year period together with projected costs and 
87.31 	impact on performance targets; and
88.1 	(8) identifies those performance targets identified under clause (1) not expected to meet 
88.2 	the target outcome over the 20-year period together with alternative strategies that could 
88.3 	be implemented to meet the targets.

88.4 	Sec. 97. [174.38] ACTIVE TRANSPORTATION PROGRAM.
88.5 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
88.6 	the meanings given them.
88.7 	(b) "Active transportation" means bicycling, pedestrian activities, and other forms of 
88.8 	nonmotorized transportation.
88.9 	(c) "Commissioner" means the commissioner of transportation.
88.10 		Subd. 2.Program established. Subject to available funds, the commissioner must 
88.11 	establish a program to support active transportation.
88.12 		Subd. 3.Active transportation account. An active transportation account is established 
88.13 	in the special revenue fund. The account consists of funds provided by law and any other 
88.14 	money donated, allotted, transferred, or otherwise provided to the account. Money in the 
88.15 	account must be expended only on a project that receives financial assistance under this 
88.16 	section.
88.17 		Subd. 4.Program administration. (a) The commissioner must establish active 
88.18 	transportation program requirements, including:
88.19 	(1) assistance eligibility, subject to the requirements under subdivision 5;
88.20 	(2) a solicitation and application process that minimizes the burden on applicants; and
88.21 	(3) procedures to award and pay financial assistance.
88.22 	(b) The commissioner must annually conduct a solicitation for active transportation 
88.23 	projects under the program.
88.24 	(c) The commissioner must make reasonable efforts to publicize each application 
88.25 	solicitation among all eligible recipients. The commissioner must assist applicants to create 
88.26 	and submit applications, with an emphasis on providing assistance in communities that are 
88.27 	historically and currently underrepresented in local or regional planning, including 
88.28 	communities of color, low-income households, people with disabilities, and people with 
88.29 	limited English proficiency.
88.30 	(d) The commissioner may provide grants or other financial assistance for a project.
89.1 	(e) The commissioner is prohibited from expending more than one percent of available 
89.2 	funds in a fiscal year under this section on program administration.
89.3 		Subd. 5.Eligibility. Eligible recipients of financial assistance under this section are:
89.4 	(1) a political subdivision; and
89.5 	(2) a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code, as 
89.6 	amended.
89.7 		Subd. 6.Use of funds. The commissioner must determine permissible uses of financial 
89.8 	assistance under this section, which are limited to:
89.9 	(1) construction and maintenance of bicycle, trail, and pedestrian infrastructure, including 
89.10 	but not limited to safe routes to school infrastructure and bicycle facilities and centers; and
89.11 	(2) noninfrastructure programming, including activities as specified in section 174.40, 
89.12 	subdivision 7a, paragraph (b).
89.13 		Subd. 7.Project evaluation and selection. (a) The commissioner must establish a 
89.14 	project evaluation and selection process that is competitive, criteria-based, and objective.
89.15 	(b) The process must include criteria and prioritization of projects based on:
89.16 	(1) the project's inclusion in a municipal or regional nonmotorized transportation system 
89.17 	plan;
89.18 	(2) the extent to which policies or practices of the political subdivision encourage and 
89.19 	promote complete streets planning, design, and construction;
89.20 	(3) the extent to which the project supports connections between communities and to 
89.21 	key destinations within a community;
89.22 	(4) identified barriers or deficiencies in the nonmotorized transportation system;
89.23 	(5) identified safety or health benefits;
89.24 	(6) geographic equity in project benefits, with an emphasis on communities that are 
89.25 	historically and currently underrepresented in local or regional planning; and
89.26 	(7) ability of a grantee to maintain the active transportation infrastructure following 
89.27 	project completion.

90.1 	Sec. 98. Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:
90.2 		Subd. 5.Certification and disbursal for project of political subdivision. Before 
90.3 	disbursement of an appropriation made from the fund to the commissioner of transportation 
90.4 	for grants to subdivisions of the state, the commissioner shall must certify that:
90.5 	(1) that the project for which the grant is made has been reviewed as provided in 
90.6 	subdivision 4;
90.7 	(2) that the project conforms to the program authorized by the appropriation law and 
90.8 	rules adopted by the Department of Transportation consistent therewith; and
90.9 	(3) that (2) the financing of any estimated cost of the project in excess of the amount of 
90.10 	the grant is assured by the appropriation of the proceeds of bonds or other funds of the 
90.11 	subdivision, or by a grant from an agency of the federal government, within the amount of 
90.12 	funds then appropriated to that agency and allocated by it to projects within the state, and 
90.13 	by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to 
90.14 	use all funds so made available exclusively for the project, and to pay any additional amount 
90.15 	by which the cost exceeds the estimate through appropriation to the construction fund of 
90.16 	additional funds or the proceeds of additional bonds to be issued by the subdivision.

90.17 	Sec. 99. Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:
90.18 		Subd. 6b.Bridge costs in smaller cities. (a) The commissioner may make grants from 
90.19 	the state transportation fund to a home rule or statutory city with a population of 5,000 or 
90.20 	less for design, engineering, and construction of bridges on city streets.
90.21 	(b) Grants under this subdivision are subject to the procedures and criteria established 
90.22 	under subdivisions 5, 6, and 7.
90.23 	(c) (b) Grants may be used for:
90.24 	(1) 100 percent of the design and engineering costs that are in excess of $10,000;
90.25 	(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
90.26 	(3) 100 percent of the bridge construction work costs.

90.27 	Sec. 100. Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:
90.28 		Subd. 6c.Fracture-critical bridges. (a) The commissioner may make a grant to any 
90.29 	political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be 
90.30 	eligible for a grant under this subdivision, the project must produce a bridge structure:
91.1 	(1) that is no longer classified as fracture critical, by having alternate load paths; and
91.2 	(2) whose failure of a main component will not result in the collapse of the bridge.
91.3 	(b) A grant under this subdivision is subject to the procedures and criteria established 
91.4 	under subdivisions 5 and 6.

91.5 	Sec. 101. Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:
91.6 		Subd. 7.Bridge grant program; rulemaking. (a) The commissioner of transportation 
91.7 	shall develop rules, procedures for application for grants, conditions of grant administration, 
91.8 	standards, and criteria as provided under subdivision 6, including bridge specifications, in 
91.9 	cooperation with road authorities of political subdivisions, for use in the administration of 
91.10 	funds appropriated to the commissioner and for the administration of grants to subdivisions. 
91.11 	Grants under this section are subject to the procedures and criteria established in this 
91.12 	subdivision and in subdivisions 5 and 6.
91.13 	(b) The maximum use of standardized bridges is encouraged. Regardless of the size of 
91.14 	the existing bridge, a bridge or replacement bridge is eligible for assistance from the state 
91.15 	transportation fund if a hydrological survey indicates that the bridge or replacement bridge 
91.16 	must be ten feet or more in length.
91.17 	(c) As part of the standards or rules, the commissioner shall, in consultation with local 
91.18 	road authorities, establish a minimum distance between any two bridges that cross over the 
91.19 	same river, stream, or waterway, so that only one of the bridges is eligible for a grant under 
91.20 	this section. As appropriate, the commissioner may establish exceptions from the minimum 
91.21 	distance requirement or procedures for obtaining a variance.
91.22 	(d) Political subdivisions may use grants made under this section to construct or 
91.23 	reconstruct bridges, including but not limited to:
91.24 	(1) matching federal aid grants to construct or reconstruct key bridges;
91.25 	(2) paying the costs to abandon an existing bridge that is deficient and in need of 
91.26 	replacement but where no replacement will be made; and
91.27 	(3) paying the costs to construct a road or street to facilitate the abandonment of an 
91.28 	existing bridge if the commissioner determines that the bridge is deficient, and that 
91.29 	construction of the road or street is more economical than replacement of the existing bridge.
91.30 	(e) Funds appropriated to the commissioner from the Minnesota state transportation 
91.31 	fund shall be segregated from the highway tax user distribution fund and other funds created 
91.32 	by article XIV of the Minnesota Constitution.
92.1 	(f) The commissioner is prohibited from awarding a grant under this section for a local 
92.2 	bridge replacement or rehabilitation project with a total project cost estimate of $7,000,000 
92.3 	or more.
92.4 	(g) Notwithstanding paragraph (f), the commissioner may award a grant under this 
92.5 	section for a portion of a local bridge replacement or rehabilitation project with a total 
92.6 	project cost estimate of $7,000,000 or more if every other local bridge replacement or 
92.7 	rehabilitation project on the commissioner's priority list with a total project cost estimate 
92.8 	of less than $7,000,000 has been fully funded.

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

92.10 	Sec. 102. [174.53] DEPARTMENT OF TRANSPORTATION EFFICIENCIES.
92.11 	(a) Beginning in fiscal years 2018 and 2019, the commissioner of transportation must 
92.12 	implement efficiencies equal to at least 15 percent of the appropriations made annually to 
92.13 	the commissioner from the trunk highway fund that are above base appropriations for fiscal 
92.14 	years 2018 and 2019.
92.15 	(b) The efficiency savings resulting from the requirements in paragraph (a) are for the 
92.16 	construction, maintenance, or rehabilitation of trunk highways, including roads and bridges.

92.17 	Sec. 103. Minnesota Statutes 2016, section 174.56, is amended by adding a subdivision 
92.18 	to read:
92.19 		Subd. 4.Availability of information. The commissioner must maintain an Internet Web 
92.20 	site that displays information for each major highway project. At a minimum, the information 
92.21 	must include the report contents identified in subdivision 2.

92.22 	Sec. 104. [174.57] SNOW AND ICE CONTROL; APPROPRIATION.
92.23 	(a) In a fiscal year in which the commissioner expends more than 110 percent of the 
92.24 	established biennial expenditure level for snow and ice management, the commissioner may 
92.25 	use an additional amount for this purpose that does not exceed 50 percent of the 
92.26 	unappropriated balance in the trunk highway fund. The amount identified by the 
92.27 	commissioner under this paragraph is appropriated from the trunk highway fund to the 
92.28 	commissioner for snow and ice management purposes.
92.29 	(b) Upon using the appropriation authority in this section, the commissioner must notify 
92.30 	the commissioner of management and budget and the chairs, ranking minority members, 
92.31 	and staff of the house of representatives and senate committees having jurisdiction over 
93.1 	transportation finance. The notification must at a minimum identify the established biennial 
93.2 	expenditure level for snow and ice management and the amount appropriated under this 
93.3 	section.
93.4 	(c) In each budget submission to the legislature under section 16A.11, the commissioner 
93.5 	must include:
93.6 	(1) the proposed biennial expenditure level for snow and ice management for the next 
93.7 	budget biennium; and
93.8 	(2) the total amount expended or estimated to be expended under the appropriation in 
93.9 	this section for the budget biennium that is ending.
93.10 	(d) For purposes of this section, "snow and ice management purposes" means the 
93.11 	following items relating to keeping the roads clear of snow and ice: overtime pay for existing 
93.12 	employees; fuel; maintenance and repair; and anti-icing treatments, salt, sand, or other 
93.13 	similar substances. "Snow and ice management purposes" does not include the hiring of 
93.14 	additional employees or purchasing additional vehicles or equipment.

93.15 	Sec. 105. Minnesota Statutes 2016, section 174.93, is amended to read:
93.16 	174.93 GUIDEWAY METROPOLITAN AREA TRANSIT INVESTMENT.
93.17 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
93.18 	the meanings given:.
93.19 	(1) (b) "Busway" means a form of bus service provided to the public on a regular and 
93.20 	ongoing basis, including arterial or highway bus rapid transit, that (1) compared to other 
93.21 	regular route bus service, provides reduced travel time and uses distinct bus stop or station 
93.22 	amenities, and (2) does not primarily or substantially operate within separated rights-of-way;
93.23 	(c) "Commissioner" means the commissioner of transportation;.
93.24 	(2) (d) "Guideway" means a form of transportation service provided to the public on a 
93.25 	regular and ongoing basis, that primarily or substantially operates on exclusive or controlled
93.26 	within separated rights-of-way or operates on rails in whole or in part, and includes:
93.27 	(1) each line for intercity passenger rail, commuter rail, light rail transit, and streetcars, 
93.28 	and;
93.29 	(2) as applicable, each line for dedicated bus service, which may include arterial or 
93.30 	highway bus rapid transit; and, limited stop bus service, and express bus service; and
94.1 	(3) any intermodal facility serving two or more lines identified in clauses (1) and (2). 
94.2 	Guideway does not include a busway.
94.3 	(3) (e) "Local unit of government" means a county, statutory or home rule charter city, 
94.4 	town, or other political subdivision including, but not limited to, a regional railroad authority 
94.5 	or joint powers board.
94.6 	(f) "Separated rights-of-way" includes exclusive, dedicated, or primary use of a 
94.7 	right-of-way by the public transportation service. Separated rights-of-way does not include 
94.8 	a shoulder, dynamic shoulder lane, or priced lane under section 160.93.
94.9 	(b) For purposes of this section, (g) "Sources of funds" includes, but is not limited to, 
94.10 	money from federal aid, state appropriations, the Metropolitan Council, special taxing 
94.11 	districts, local units of government, fare box recovery, and nonpublic sources.
94.12 	(c) For purposes of this section, (h) "Budget activity" includes, but is not limited to, 
94.13 	environmental analysis, land acquisition, easements, design, preliminary and final 
94.14 	engineering, acquisition of vehicles and rolling stock, track improvement and rehabilitation, 
94.15 	and construction.
94.16 		Subd. 1a.Guideway capital project requests to legislature. A state agency or local 
94.17 	unit of government that submits a request to the legislature to obtain state funds for a 
94.18 	guideway project shall, as part of the request, provide a summary financial plan for the 
94.19 	project that presents the following information as reflected by the data and level of detail 
94.20 	available in the latest phase of project development:
94.21 	(1) capital expenditures and funding sources for the project, including expenditures to 
94.22 	date and total projected or estimated expenditures, with a breakdown by committed and 
94.23 	proposed sources of funds; and
94.24 	(2) estimated annual operations and maintenance expenditures for the project, with a 
94.25 	breakdown by committed and proposed sources of funds.
94.26 		Subd. 2.Legislative report. (a) By January October 15, 2012, and by November 15 in 
94.27 	every odd-numbered even-numbered year thereafter, the commissioner shall council must
94.28 	prepare, in collaboration with the Metropolitan Council commissioner, and a report on 
94.29 	comprehensive transit finance in the metropolitan area. The council must submit a the report 
94.30 	electronically to the chairs and ranking minority members of the legislative committees 
94.31 	with jurisdiction over transportation policy and finance concerning.
94.32 	(b) The report must be structured to provide financial information in six-month increments 
94.33 	corresponding to state and local fiscal years, and must use consistent assumptions and 
95.1 	methodologies. The report must comprehensively identify all funding sources and 
95.2 	expenditures related to transit in the metropolitan area, including but not limited to:
95.3 	(1) sources and uses of funds from regional railroad authorities, joint powers agreements, 
95.4 	counties, and cities;
95.5 	(2) expenditures for transit planning, feasibility studies, alternatives analysis, and other 
95.6 	transit project development; and
95.7 	(3) expenditures for guideways, busways, regular route bus service, demand-response 
95.8 	service, and special transportation service under section 473.386.
95.9 	(c) The report must include a section that summarizes the status of (1) guideways in 
95.10 	revenue operation, and (2) guideway projects (1) (i) currently in study, planning, 
95.11 	development, or construction; (2) (ii) identified in the transportation policy plan under 
95.12 	section 473.146; or (3) (iii) identified in the comprehensive statewide freight and passenger 
95.13 	rail plan under section 174.03, subdivision 1b.
95.14 	(b) (d) At a minimum, the guideways status section of the report must include, provide
95.15 	for each guideway project wholly or partially in the metropolitan area:
95.16 	(1) a brief description of the project, including projected ridership;
95.17 	(2) a summary of the overall status and current phase of the project;
95.18 	(3) a timeline that includes (i) project phases or milestones, including any federal 
95.19 	approvals; (ii) expected and known dates of commencement of each phase or milestone; 
95.20 	and (iii) expected and known dates of completion of each phase or milestone;
95.21 	(4) a brief progress update on specific project phases or milestones completed since the 
95.22 	last previous submission of a report under this subdivision; and
95.23 	(5) a summary financial plan that identifies, as reflected by the data and level of detail 
95.24 	available in the latest phase of project development and to the extent available:
95.25 	(i) capital expenditures, including expenditures to date and total projected expenditures, 
95.26 	with a breakdown by committed and proposed sources of funds for the project;
95.27 	(ii) estimated annual operations and maintenance expenditures reflecting the level of 
95.28 	detail available in the current phase of the project development, with a breakdown by 
95.29 	committed and proposed sources of funds for the project; and
95.30 	(iii) if feasible, project expenditures by budget activity.
96.1 	(e) The report must include a section that summarizes the status of (1) busways in revenue 
96.2 	operation, and (2) busway projects currently in study, planning, development, or construction.
96.3 	(f) The report must include a section that identifies the total ridership, farebox recovery 
96.4 	ratio, and per-passenger operating subsidy for (1) each route and line in revenue operation 
96.5 	by a transit provider, including guideways, busways, and regular route bus service; and (2) 
96.6 	demand-response service and special transportation service. The section must provide data, 
96.7 	as available on a per-passenger mile basis and must provide information for at least the 
96.8 	previous three years. The section must identify performance standards for farebox recovery 
96.9 	and identify each route and line that does not meet the standards.
96.10 	(c) (g) The report must also include a systemwide capacity analysis for transit operations 
96.11 	and investment in guideway expansion and maintenance that:
96.12 	(1) provides a funding projection, annually over the ensuing ten years, and with a 
96.13 	breakdown by committed and proposed sources of funds, of:
96.14 	(i) total capital expenditures for guideways and for busways;
96.15 	(ii) total operations and maintenance expenditures for guideways and for busways;
96.16 	(iii) total funding available for guideways and for busways, including from projected or 
96.17 	estimated farebox recovery; and
96.18 	(iv) total funding available for transit service in the metropolitan area; and
96.19 	(2) evaluates the availability of funds and distribution of sources of funds for guideway
96.20 	and for busway investments.
96.21 	(d) (h) The projection capacity analysis under paragraph (c), clause (1), (g) must be for
96.22 	include all guideway and busway lines for which state public funds are reasonably expected 
96.23 	to be expended in planning, development, construction, or revenue operation, or capital 
96.24 	maintenance during the ensuing ten years.
96.25 	(e) (i) Local units of government shall must provide assistance and information in a 
96.26 	timely manner as requested by the commissioner or council for completion of the report.

96.27 	EFFECTIVE DATE; APPLICATION. This section is effective January 1, 2018, and 
96.28 	applies beginning with the report due by October 15, 2018. This section applies in the 
96.29 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

97.1 	Sec. 106. [219.016] HAZARDOUS MATERIALS RAIL SAFETY.
97.2 		Subdivision 1.Program established. A hazardous materials rail safety program is 
97.3 	established for the purpose of reducing the risks associated with the transportation of oil, 
97.4 	ethanol, and other hazardous material by rail.
97.5 		Subd. 2.Accounts established. Two hazardous materials rail safety program accounts 
97.6 	are created, one in the special revenue fund and one in the bond proceeds fund. The account 
97.7 	in the special revenue fund consists of money as provided by law, and any other money 
97.8 	donated, allotted, transferred, or otherwise provided to the account. Money in each account 
97.9 	is appropriated to the commissioner of transportation to make grants as provided in this 
97.10 	section. Money in the accounts is available until spent, notwithstanding section 16A.28 or 
97.11 	16A.642.
97.12 		Subd. 3.Eligible applicant. A county, statutory or home rule charter city, or town that 
97.13 	is responsible for establishing and maintaining public highway-rail grade crossings on rail 
97.14 	corridors transporting crude oil and other hazardous materials may apply to the commissioner 
97.15 	for financial assistance under this section.
97.16 		Subd. 4.Eligible project. (a) A project is eligible for a grant from the account in the 
97.17 	bond proceeds fund if the project is for the acquisition or betterment of public land, buildings, 
97.18 	and other public improvements of a capital nature within the meaning of the Minnesota 
97.19 	Constitution, article XI, section 5, clause (a) or (i), including capital costs associated with 
97.20 	hazardous materials rail safety projects on public highway-rail grade crossings. Qualifying 
97.21 	capital costs include but are not limited to upgrades to existing protection systems, the 
97.22 	closing of crossings and necessary roadwork, and reconstruction of at-grade crossings to 
97.23 	full grade separations.
97.24 	(b) A project is eligible for a grant from the account in the special revenue fund if it is 
97.25 	for purposes described in paragraph (a) or other capital facility improvement purposes that 
97.26 	support the purposes for which this grant program is established, including capital costs 
97.27 	associated with planning, engineering, administration, and construction of public highway-rail 
97.28 	grade crossing improvements on rail corridors transporting crude oil and other hazardous 
97.29 	materials. Improvements may include upgrades to existing protection systems, the closing 
97.30 	of crossings and necessary roadwork, and reconstruction of at-grade crossings to full grade 
97.31 	separations.
97.32 		Subd. 5.Grants; criteria for grant award. The commissioner must consider the 
97.33 	following criteria to evaluate applications for a grant award under this section:
98.1 	(1) whether the crossing was identified as a potential candidate for grade separation in 
98.2 	the Department of Transportation's crude by rail grade crossing study (Improvements to 
98.3 	Highway Grade Crossings and Rail Safety, December 2014);
98.4 	(2) roadway traffic volumes and speeds;
98.5 	(3) train volumes and speeds;
98.6 	(4) adjacent land use;
98.7 	(5) crash history;
98.8 	(6) use of the crossing by emergency vehicles;
98.9 	(7) use of the crossing by vehicles carrying hazardous materials; and
98.10 	(8) local financial contributions to the project.
98.11 		Subd. 6.Process.  The commissioner must develop forms and procedures for soliciting 
98.12 	and reviewing applications for grants under this section. An applicant must apply for a grant 
98.13 	in the manner and at the times determined by the commissioner. The grant agreement must 
98.14 	be approved by the commissioner of management and budget and is subject to cancellation 
98.15 	under subdivision 7.
98.16 		Subd. 7.Grant cancellation. If the commissioner determines that a grantee is unable 
98.17 	to proceed with an approved project or has not expended or obligated the grant money within 
98.18 	four years of entering into the grant agreement with the commissioner, the commissioner 
98.19 	must cancel the grant. Money canceled under this subdivision is available for the 
98.20 	commissioner to make other grants under this section.

98.21 	Sec. 107. Minnesota Statutes 2016, section 221.031, is amended by adding a subdivision 
98.22 	to read:
98.23 		Subd. 2e.Exemptions for pipeline welding trucks. A pipeline welding truck, as defined 
98.24 	in Code of Federal Regulations, title 49, section 390.38, paragraph (b), including an individual 
98.25 	operating a pipeline welding truck and the employer of the individual, is exempt from any 
98.26 	requirement relating to:
98.27 	(1) registration as a motor carrier, including the requirement to obtain and display a 
98.28 	United States Department of Transportation number under subdivision 6 and section 168.185;
98.29 	(2) driver qualifications under section 221.0314, subdivision 2;
98.30 	(3) driving of commercial motor vehicles under section 221.0314, subdivision 6;
99.1 	(4) parts, accessories, and inspection, repair, and maintenance of commercial motor 
99.2 	vehicles under section 221.0314, subdivisions 7 and 10; and
99.3 	(5) hours of service of drivers, including maximum driving and on-duty time under 
99.4 	section 221.0314, subdivision 9.

99.5 	Sec. 108. Minnesota Statutes 2016, section 222.49, is amended to read:
99.6 	222.49 RAIL SERVICE IMPROVEMENT ACCOUNT; APPROPRIATION.
99.7 	The rail service improvement account is created in the special revenue fund in the state 
99.8 	treasury. The commissioner shall deposit in this account all consists of funds as provided 
99.9 	by law, and any other money appropriated to or received by the department for the purpose 
99.10 	of rail service improvement donated, allotted, transferred, or otherwise provided to the 
99.11 	account, excluding bond proceeds as authorized by article XI, section 5, clause (i), of the 
99.12 	Minnesota Constitution. All money so deposited is appropriated to the department for 
99.13 	expenditure for rail service improvement in accordance with applicable state and federal 
99.14 	law. This appropriation shall not lapse but shall be available until the purpose for which it 
99.15 	was appropriated has been accomplished. No money appropriated to the department for the 
99.16 	purposes of administering the rail service improvement program shall be deposited in the 
99.17 	rail service improvement account nor shall such administrative costs be paid from the 
99.18 	account.

99.19 	Sec. 109. Minnesota Statutes 2016, section 222.50, subdivision 6, is amended to read:
99.20 		Subd. 6.Grants. The commissioner may approve grants from the rail service 
99.21 	improvement account for payment of up to 50 percent of the nonfederal share of the cost 
99.22 	of any rail line project under the federal rail service continuation program freight rail service 
99.23 	improvements that support economic development.

99.24 	Sec. 110. Minnesota Statutes 2016, section 256B.15, subdivision 1a, is amended to read:
99.25 		Subd. 1a.Estates subject to claims. (a) If a person receives medical assistance hereunder, 
99.26 	on the person's death, if single, or on the death of the survivor of a married couple, either 
99.27 	or both of whom received medical assistance, or as otherwise provided for in this section, 
99.28 	the amount paid for medical assistance as limited under subdivision 2 for the person and 
99.29 	spouse shall be filed as a claim against the estate of the person or the estate of the surviving 
99.30 	spouse in the court having jurisdiction to probate the estate or to issue a decree of descent 
99.31 	according to sections 525.31 to 525.313.
99.32 	(b) For the purposes of this section, the person's estate must consist of:
100.1 	(1) the person's probate estate;
100.2 	(2) all of the person's interests or proceeds of those interests in real property the person 
100.3 	owned as a life tenant or as a joint tenant with a right of survivorship at the time of the 
100.4 	person's death;
100.5 	(3) all of the person's interests or proceeds of those interests in securities the person 
100.6 	owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time 
100.7 	of the person's death, to the extent the interests or proceeds of those interests become part 
100.8 	of the probate estate under section 524.6-307;
100.9 	(4) all of the person's interests in joint accounts, multiple-party accounts, and pay-on-death 
100.10 	accounts, brokerage accounts, investment accounts, or the proceeds of those accounts, as 
100.11 	provided under sections 524.6-201 to 524.6-214 at the time of the person's death to the 
100.12 	extent the interests become part of the probate estate under section 524.6-207; and
100.13 	(5) assets conveyed to a survivor, heir, or assign of the person through survivorship, 
100.14 	living trust, transfer-on-death of title or deed, or other arrangements.
100.15 	(c) For the purpose of this section and recovery in a surviving spouse's estate for medical 
100.16 	assistance paid for a predeceased spouse, the estate must consist of all of the legal title and 
100.17 	interests the deceased individual's predeceased spouse had in jointly owned or marital 
100.18 	property at the time of the spouse's death, as defined in subdivision 2b, and the proceeds of 
100.19 	those interests, that passed to the deceased individual or another individual, a survivor, an 
100.20 	heir, or an assign of the predeceased spouse through a joint tenancy, tenancy in common, 
100.21 	survivorship, life estate, living trust, or other arrangement. A deceased recipient who, at 
100.22 	death, owned the property jointly with the surviving spouse shall have an interest in the 
100.23 	entire property.
100.24 	(d) For the purpose of recovery in a single person's estate or the estate of a survivor of 
100.25 	a married couple, "other arrangement" includes any other means by which title to all or any 
100.26 	part of the jointly owned or marital property or interest passed from the predeceased spouse 
100.27 	to another including, but not limited to, transfers between spouses which are permitted, 
100.28 	prohibited, or penalized for purposes of medical assistance.
100.29 	(e) A claim shall be filed if medical assistance was rendered for either or both persons 
100.30 	under one of the following circumstances:
100.31 	(1) the person was over 55 years of age, and received services under this chapter prior 
100.32 	to January 1, 2014;
101.1 	(2) the person resided in a medical institution for six months or longer, received services 
101.2 	under this chapter, and, at the time of institutionalization or application for medical assistance, 
101.3 	whichever is later, the person could not have reasonably been expected to be discharged 
101.4 	and returned home, as certified in writing by the person's treating physician. For purposes 
101.5 	of this section only, a "medical institution" means a skilled nursing facility, intermediate 
101.6 	care facility, intermediate care facility for persons with developmental disabilities, nursing 
101.7 	facility, or inpatient hospital;
101.8 	(3) the person received general assistance medical care services under the program 
101.9 	formerly codified under chapter 256D; or
101.10 	(4) the person was 55 years of age or older and received medical assistance services on 
101.11 	or after January 1, 2014, that consisted of nursing facility services, home and 
101.12 	community-based services, or related hospital and prescription drug benefits.
101.13 	(f) The claim shall be considered an expense of the last illness of the decedent for the 
101.14 	purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a state or 
101.15 	county agency with a claim under this section must be a creditor under section 524.6-307. 
101.16 	Any statute of limitations that purports to limit any county agency or the state agency, or 
101.17 	both, to recover for medical assistance granted hereunder shall not apply to any claim made 
101.18 	hereunder for reimbursement for any medical assistance granted hereunder. Notice of the 
101.19 	claim shall be given to all heirs and devisees of the decedent, and to other persons with an 
101.20 	ownership interest in the real property owned by the decedent at the time of the decedent's 
101.21 	death, whose identity can be ascertained with reasonable diligence. The notice must include 
101.22 	procedures and instructions for making an application for a hardship waiver under subdivision 
101.23 	5; time frames for submitting an application and determination; and information regarding 
101.24 	appeal rights and procedures. Counties are entitled to one-half of the nonfederal share of 
101.25 	medical assistance collections from estates that are directly attributable to county effort. 
101.26 	Counties are entitled to ten percent of the collections for alternative care directly attributable 
101.27 	to county effort.

101.28 	Sec. 111. Minnesota Statutes 2016, section 297A.815, subdivision 3, is amended to read:
101.29 		Subd. 3.Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision, 
101.30 	"net revenue" means an amount equal to the revenues, including interest and penalties, 
101.31 	collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
101.32 	(b)(a) On or before June 30 of each fiscal year, the commissioner of revenue shall must
101.33 	estimate the amount of the net revenue revenues, including interest and penalties and minus 
101.34 	refunds, collected under this section for the current fiscal year.
102.1 	(c) On or after (b) By July 1 15 of the subsequent fiscal year, the commissioner of 
102.2 	management and budget shall must transfer the net revenue as revenues estimated in under
102.3 	paragraph (b) (a) from the general fund, as follows:
102.4 	(1) 38 percent to the county state-aid highway fund;
102.5 	(2) 38 percent to the greater Minnesota transit account;
102.6 	(3) 13 percent to the Minnesota state transportation fund; and
102.7 	(4) 11 percent to the highway user tax distribution fund.
102.8 	(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to the 
102.9 	county state-aid highway fund. (c) Notwithstanding any other law to the contrary, the 
102.10 	commissioner of transportation shall must allocate the funds transferred under this paragraph 
102.11 	(b),  clause (1), to the counties in the metropolitan area, as defined in section 473.121, 
102.12 	subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall 
102.13 	receive of such amount receives the percentage that its population, as defined in section 
102.14 	477A.011, subdivision 3, estimated or established by July 15 of the year prior to the current 
102.15 	calendar year, bears to the total population of the counties receiving funds under this clause; 
102.16 	and paragraph.
102.17 	(2) the remainder to the greater Minnesota transit account. (d) The amount transferred 
102.18 	under paragraph (b), clause (3), must be used for the local bridge program under section 
102.19 	174.50, subdivisions 6 to 7.
102.20 	(e) The revenues under this subdivision do not include the revenues, including interest 
102.21 	and penalties and minus refunds, generated by the sales tax imposed under section 297A.62, 
102.22 	subdivision 1a, which must be deposited as provided under the Minnesota Constitution, 
102.23 	article XI, section 15.

102.24 	EFFECTIVE DATE. This section is effective the day following final enactment and 
102.25 	applies beginning with transfers recognized in fiscal year 2018.

102.26 	Sec. 112. Minnesota Statutes 2016, section 297A.94, is amended to read:
102.27 	297A.94 DEPOSIT OF REVENUES.
102.28 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
102.29 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
102.30 	treasury and credit them to the general fund.
102.31 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
102.32 	account in the special revenue fund if:
103.1 	(1) the taxes are derived from sales and use of property and services purchased for the 
103.2 	construction and operation of an agricultural resource project; and
103.3 	(2) the purchase was made on or after the date on which a conditional commitment was 
103.4 	made for a loan guaranty for the project under section 41A.04, subdivision 3.
103.5 	The commissioner of management and budget shall certify to the commissioner the date on 
103.6 	which the project received the conditional commitment. The amount deposited in the loan 
103.7 	guaranty account must be reduced by any refunds and by the costs incurred by the Department 
103.8 	of Revenue to administer and enforce the assessment and collection of the taxes.
103.9 	(c) The commissioner shall deposit the revenues, including interest and penalties, derived 
103.10 	from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3, 
103.11 	paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
103.12 	(1) first to the general obligation special tax bond debt service account in each fiscal 
103.13 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and
103.14 	(2) after the requirements of clause (1) have been met, the balance to the general fund.
103.15 	(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit 
103.16 	in the state treasury the revenues collected under section 297A.64, subdivision 1, including 
103.17 	interest and penalties and minus refunds, and credit them to the highway user tax distribution 
103.18 	fund.
103.19 	(e) The commissioner shall deposit the revenues, including interest and penalties, 
103.20 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
103.21 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
103.22 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
103.23 	subdivision 5, for the previous calendar year.
103.24 	(e) (f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the 
103.25 	deposit of revenues under paragraph (d), the commissioner shall deposit into the state 
103.26 	treasury and credit to the highway user tax distribution fund an amount equal to the estimated 
103.27 	revenues derived from the tax rate imposed under section 297A.62, subdivision 1, on the 
103.28 	lease or rental for not more than 28 days of rental motor vehicles subject to section 297A.64. 
103.29 	The commissioner shall estimate the amount of sales tax revenue deposited under this 
103.30 	paragraph based on the amount of revenue deposited under paragraph (d).
103.31 	(g) Starting after July 1, 2017, the commissioner shall deposit an amount of the 
103.32 	remittances monthly into the state treasury and credit them to the highway user tax 
103.33 	distribution fund as a portion of the estimated amount of taxes collected from the sale and 
104.1 	purchase of motor vehicle repair parts in that month. For the remittances between July 1, 
104.2 	2017, and June 30, 2019, the monthly deposit amount is $6,001,000. For remittances in 
104.3 	each subsequent fiscal year, the monthly deposit amount is $17,173,000. For purposes of 
104.4 	this paragraph, "motor vehicle" has the meaning given in section 297B.01, subdivision 11, 
104.5 	and "motor vehicle repair and replacement parts" includes (i) all parts, tires, accessories, 
104.6 	and equipment incorporated into or affixed to the motor vehicle as part of the motor vehicle 
104.7 	maintenance and repair, and (ii) paint, oil, and other fluids that remain on or in the motor 
104.8 	vehicle as part of the motor vehicle maintenance or repair. For purposes of this paragraph, 
104.9 	"tire" means any tire of the type used on highway vehicles, if wholly or partially made of 
104.10 	rubber and if marked according to federal regulations for highway use.
104.11 	(h) 72.43 percent of the revenues, including interest and penalties, transmitted to the 
104.12 	commissioner under section 297A.65, must be deposited by the commissioner in the state 
104.13 	treasury as follows:
104.14 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account in 
104.15 	the game and fish fund, and may be spent only on activities that improve, enhance, or protect 
104.16 	fish and wildlife resources, including conservation, restoration, and enhancement of land, 
104.17 	water, and other natural resources of the state;
104.18 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 
104.19 	be spent only for state parks and trails;
104.20 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 
104.21 	be spent only on metropolitan park and trail grants;
104.22 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
104.23 	may be spent only on local trail grants; and
104.24 	(5) two percent of the receipts must be deposited in the natural resources fund, and may 
104.25 	be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory, 
104.26 	and the Duluth Zoo.
104.27 	(f) (i)  The revenue dedicated under paragraph (e) (h) may not be used as a substitute 
104.28 	for traditional sources of funding for the purposes specified, but the dedicated revenue shall 
104.29 	supplement traditional sources of funding for those purposes. Land acquired with money 
104.30 	deposited in the game and fish fund under paragraph (e) (h) must be open to public hunting 
104.31 	and fishing during the open season, except that in aquatic management areas or on lands 
104.32 	where angling easements have been acquired, fishing may be prohibited during certain times 
104.33 	of the year and hunting may be prohibited. At least 87 percent of the money deposited in 
105.1 	the game and fish fund for improvement, enhancement, or protection of fish and wildlife 
105.2 	resources under paragraph (e) (h) must be allocated for field operations.
105.3 	(g)(j) The revenues deposited under paragraphs (a) to (f) (i) do not include the revenues, 
105.4 	including interest and penalties, generated by the sales tax imposed under section 297A.62, 
105.5 	subdivision 1a, which must be deposited as provided under the Minnesota Constitution, 
105.6 	article XI, section 15.

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

105.8 	Sec. 113. Minnesota Statutes 2016, section 297A.992, is amended by adding a subdivision 
105.9 	to read:
105.10 		Subd. 10a.Termination of taxes; use of remaining funds. If the joint powers agreement 
105.11 	under subdivision 3 is terminated, funds received by a county in association with the 
105.12 	termination may be used for any of the purposes specified in section 297A.993, subdivision 
105.13 	2.

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

105.15 	Sec. 114. Minnesota Statutes 2016, section 297B.01, subdivision 16, is amended to read:
105.16 		Subd. 16.Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," "sells," 
105.17 	"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor 
105.18 	vehicle, whether absolutely or conditionally, for a consideration in money or by exchange 
105.19 	or barter for any purpose other than resale in the regular course of business.
105.20 	(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or 
105.21 	by holding it in an effort to so lease it, and which is put to no other use by the owner other 
105.22 	than resale after such lease or effort to lease, shall be considered property purchased for 
105.23 	resale.
105.24 	(c) The terms also shall include any transfer of title or ownership of a motor vehicle by 
105.25 	other means, for or without consideration, except that these terms shall not include:
105.26 	(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or 
105.27 	transfer-on-death of title by, a decedent who owned it;
105.28 	(2) the transfer of a motor vehicle which was previously licensed in the names of two 
105.29 	or more joint tenants and subsequently transferred without monetary consideration to one 
105.30 	or more of the joint tenants;
106.1 	(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer 
106.2 	licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with 
106.3 	no monetary or other consideration or expectation of consideration and the parties to the 
106.4 	transfer submit an affidavit to that effect at the time the title transfer is recorded;
106.5 	(4) the transfer of a motor vehicle by gift between:
106.6 	(i) spouses;
106.7 	(ii) parents and a child; or
106.8 	(iii) grandparents and a grandchild;
106.9 	(5) the voluntary or involuntary transfer of a motor vehicle between a husband and wife 
106.10 	in a divorce proceeding; or
106.11 	(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from 
106.12 	federal income taxation under section 501(c)(3) of the Internal Revenue Code when the 
106.13 	motor vehicle will be used exclusively for religious, charitable, or educational purposes.

106.14 	Sec. 115. Minnesota Statutes 2016, section 299D.03, subdivision 6, is amended to read:
106.15 		Subd. 6.Training program. The commissioner of public safety may provide training 
106.16 	programs for the purpose of obtaining qualified personnel for the State Patrol. Persons 
106.17 	accepted by the commissioner of public safety for training under this training program shall 
106.18 	be designated State Patrol trainees and shall receive a salary not to exceed no less than 70 
106.19 	percent of the basic salary for patrol officers as prescribed in subdivision 2, during the period 
106.20 	of the training. Nothing contained in this subdivision shall be construed to prevent the 
106.21 	commissioner of public safety from providing in-service training programs for State Patrol 
106.22 	officers. The commissioner of transportation shall furnish the commissioner of public safety 
106.23 	with lands and buildings necessary in providing in-service training programs and the 
106.24 	Department of Public Safety shall reimburse the Department of Transportation for all 
106.25 	reasonable costs incurred due to the provision of these training facilities.

106.26 	Sec. 116. Minnesota Statutes 2016, section 398A.10, subdivision 3, is amended to read:
106.27 		Subd. 3.Application. This section only applies to a county that has imposed the 
106.28 	metropolitan transportation sales and use tax under section 297A.992 and applies whether 
106.29 	or not the tax is currently in effect.

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

107.1 	Sec. 117. Minnesota Statutes 2016, section 398A.10, subdivision 4, is amended to read:
107.2 		Subd. 4.Definition. For purposes of this section, "project" means the initial construction 
107.3 	or extension of a minimum operable segment of a new light rail transit or commuter rail 
107.4 	line, but does not include infill stations, project enhancements, extensions, or supportive 
107.5 	infrastructure, constructed after the rail transit is operational.

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

107.7 	Sec. 118. Minnesota Statutes 2016, section 473.121, subdivision 2, is amended to read:
107.8 		Subd. 2.Metropolitan area or area. "Metropolitan area" or "area" means the area over 
107.9 	which the Metropolitan Council has jurisdiction, including only the counties of Anoka; 
107.10 	Carver; Dakota excluding the city cities of Northfield and Cannon Falls; Hennepin excluding 
107.11 	the cities of Hanover and Rockford; Ramsey; Scott excluding the city of New Prague; and 
107.12 	Washington.

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

107.16 	Sec. 119. Minnesota Statutes 2016, section 473.123, is amended to read:
107.17 	473.123 METROPOLITAN COUNCIL.
107.18 		Subdivision 1.Creation; membership. (a) A Metropolitan Council with jurisdiction 
107.19 	in the metropolitan area is established as a public corporation and political subdivision of 
107.20 	the state. It shall be under the supervision and control of 17 27 members, all of whom shall
107.21 	must be residents of the metropolitan area. and appointed as follows:
107.22 	(1) a county commissioner from each metropolitan county, appointed by the respective 
107.23 	county boards;
107.24 	(2) a local elected official appointed from each Metropolitan Council district by the 
107.25 	municipal committee for the council district established in subdivision 2b;
107.26 	(3) the commissioner of transportation or the commissioner's designee;
107.27 	(4) one person to represent nonmotorized transportation, appointed by the commissioner 
107.28 	of transportation;
107.29 	(5) one person to represent freight transportation, appointed by the commissioner of 
107.30 	transportation; and
108.1 	(6) one person to represent public transit, appointed by the commissioner of 
108.2 	transportation.
108.3 	(b) The local elected offices identified in paragraph (a) are compatible with the office 
108.4 	of a Metropolitan Council member.
108.5 	(c) Notwithstanding any change to the definition of the metropolitan area in section 
108.6 	473.121, subdivision 2, the jurisdiction of the Metropolitan Council is limited to the 
108.7 	seven-county metropolitan area.
108.8 		Subd. 2a.Terms. (a) Following each apportionment of council districts, as provided 
108.9 	under subdivision 3a, council members must be appointed from newly drawn districts as 
108.10 	provided in subdivision 3a. Each council member, other than the chair, must reside in the 
108.11 	council district represented. Each council district must be represented by one member of 
108.12 	the council. The terms of members end with the term of the governor, except that all terms 
108.13 	expire on the effective date of the next apportionment. A member serves at the pleasure of 
108.14 	the governor. the municipal committee for each council district must appoint a local elected 
108.15 	official who resides in the district to serve on the Metropolitan Council for a two-year term. 
108.16 	A member's position on the Metropolitan Council becomes vacant if the member ceases to 
108.17 	be a local elected official or as provided in chapter 351, and any vacancy must be filled as 
108.18 	soon as practicable for the unexpired term in the same manner as the appointment for a 
108.19 	regular term. A member shall continue continues to serve the member's district until a 
108.20 	successor is appointed and qualified; except that, following each apportionment, the member 
108.21 	shall continue continues to serve at large until the governor appoints 16 council members, 
108.22 	one municipal committee for the council district appoints a member from each of the newly 
108.23 	drawn council districts district as provided under subdivision 3a, to serve terms as provided 
108.24 	under this section. The appointment to the council must be made by the first Monday in 
108.25 	March of the year in which the term ends.
108.26 	(b) A county commissioner is appointed to the Metropolitan Council for a two-year 
108.27 	term. In addition to the provisions in chapter 351, if a member appointed under this paragraph 
108.28 	ceases to be a county commissioner, the council position becomes vacant. A vacancy must 
108.29 	be filled as soon as practicable for the unexpired term in the same manner as the appointment 
108.30 	for a regular term.
108.31 	(c) An individual appointed by the commissioner of transportation under subdivision 1 
108.32 	serves at the pleasure of the appointing authority.
108.33 		Subd. 2b.Municipal committee in each council district. The governing body of each 
108.34 	home rule charter or statutory city and town in each Metropolitan Council district must 
109.1 	appoint a member to serve on a municipal committee for the council district. If a city or 
109.2 	town is in more than one council district, the governing body must appoint a member to 
109.3 	serve on each council district's municipal committee. A member appointed to a council 
109.4 	district's municipal committee must reside in the council district. In addition to appointing 
109.5 	a municipal committee member to serve as a member of the Metropolitan Council as provided 
109.6 	in subdivision 2a, the municipal committee must meet at least quarterly to discuss issues 
109.7 	relating to the Metropolitan Council.
109.8 		Subd. 3.Membership; appointment; qualifications Compensation. (a) Sixteen 
109.9 	members must be appointed by the governor from districts defined by this section. Each 
109.10 	council member must reside in the council district represented. Each council district must 
109.11 	be represented by one member of the council. In addition to any compensation as a local 
109.12 	elected official, the council must pay each member of the council other than the chair or 
109.13 	the commissioner of transportation, or the commissioner's designee, $20,000 per year plus 
109.14 	reimbursement of actual and necessary expenses as approved by the council. The 
109.15 	commissioner of transportation or the commissioner's designee is not eligible for 
109.16 	compensation under this subdivision but may be reimbursed for actual and necessary 
109.17 	expenses.
109.18 	(b) In addition to the notice required by section 15.0597, subdivision 4, notice of 
109.19 	vacancies and expiration of terms must be published in newspapers of general circulation 
109.20 	in the metropolitan area and the appropriate districts. The governing bodies of the statutory 
109.21 	and home rule charter cities, counties, and towns having territory in the district for which 
109.22 	a member is to be appointed must be notified in writing. The notices must describe the 
109.23 	appointments process and invite participation and recommendations on the appointment.
109.24 	In addition to any compensation as a local elected official, the council must pay the chair 
109.25 	$40,000 per year plus reimbursement of actual and necessary expenses as approved by the 
109.26 	council.
109.27 	(c) The governor shall create a nominating committee, composed of seven metropolitan 
109.28 	citizens appointed by the governor, to nominate persons for appointment to the council from 
109.29 	districts. Three of the committee members must be local elected officials. Following the 
109.30 	submission of applications as provided under section 15.0597, subdivision 5, the nominating 
109.31 	committee shall conduct public meetings, after appropriate notice, to accept statements from 
109.32 	or on behalf of persons who have applied or been nominated for appointment and to allow 
109.33 	consultation with and secure the advice of the public and local elected officials. The 
109.34 	committee shall hold the meeting on each appointment in the district or in a reasonably 
109.35 	convenient and accessible location in the part of the metropolitan area in which the district 
110.1 	is located. The committee may consolidate meetings. Following the meetings, the committee 
110.2 	shall submit to the governor a list of nominees for each appointment. The governor is not 
110.3 	required to appoint from the list.
110.4 	(d) Before making an appointment, the governor shall consult with all members of the 
110.5 	legislature from the council district for which the member is to be appointed.
110.6 	(e) Appointments to the council are subject to the advice and consent of the senate as 
110.7 	provided in section 15.066.
110.8 	(f) Members of the council must be appointed to reflect fairly the various demographic, 
110.9 	political, and other interests in the metropolitan area and the districts.
110.10 	(g) Members of the council must be persons knowledgeable about urban and metropolitan 
110.11 	affairs.
110.12 	(h) Any vacancy in the office of a council member shall immediately be filled for the 
110.13 	unexpired term. In filling a vacancy, the governor may forgo the requirements of paragraph 
110.14 	(c) if the governor has made appointments in full compliance with the requirements of this 
110.15 	subdivision within the preceding 12 months.
110.16 		Subd. 3a.Redistricting. The legislature shall must redraw the boundaries of the council 
110.17 	districts after each decennial federal census so that each district has substantially equal 
110.18 	population. Redistricting is effective in the year ending in the numeral "3." Within 60 days 
110.19 	after a redistricting plan takes effect, the governor shallmunicipal committees must appoint 
110.20 	members from the newly drawn districts to serve terms as provided under subdivision 2a.
110.21 		Subd. 3e.District boundaries. Metropolitan Council plan MC2013-1A, on file with 
110.22 	the Geographical Information Systems Office of the Legislative Coordinating Commission 
110.23 	and published on its Web site on April 9, 2013, is adopted and constitutes the redistricting 
110.24 	plan required by subdivision 3a. The boundaries of each Metropolitan Council district are 
110.25 	as described in that plan.
110.26 		Subd. 4.Chair; appointment, officers, selection; duties and compensation. (a) The 
110.27 	chair of the Metropolitan Council shall must be appointed by the governor as the 17th 28th
110.28 	voting member thereof by and with the advice and consent of the senate to serve at the 
110.29 	pleasure of the governor to represent the metropolitan area at large. Senate confirmation 
110.30 	shall be as provided by section 15.066.
110.31 	The chair of the Metropolitan Council shall must, if present, preside at meetings of the 
110.32 	council, have the primary responsibility for meeting with local elected officials, serve as 
110.33 	the principal legislative liaison, present to the governor and the legislature, after council 
111.1 	approval, the council's plans for regional governance and operations, serve as the principal 
111.2 	spokesperson of the council, and perform other duties assigned by the council or by law.
111.3 	(b) The Metropolitan Council shall must elect other officers as it deems necessary for 
111.4 	the conduct of its affairs for a one-year term. A secretary and treasurer need not be members 
111.5 	of the Metropolitan Council. Meeting times and places shall must be fixed by the 
111.6 	Metropolitan Council and special meetings may be called by a majority of the members of 
111.7 	the Metropolitan Council or by the chair. The chair and each Metropolitan Council member 
111.8 	shall must  be reimbursed for actual and necessary expenses.
111.9 	(c) Each member of the council shall must attend and participate in council meetings 
111.10 	and meet regularly with local elected officials and legislative members from the council 
111.11 	member's district. Each council member shall must serve on at least one division committee 
111.12 	for transportation, environment, or community development.
111.13 	(d) In the performance of its duties the Metropolitan Council may adopt policies and 
111.14 	procedures governing its operation, establish committees, and, when specifically authorized 
111.15 	by law, make appointments to other governmental agencies and districts.
111.16 		Subd. 8.General counsel. The council may appoint a general counsel to serve at the 
111.17 	pleasure of the council.
111.18 		Subd. 9.Authority to vote; quorum; votes required for action. (a) The members 
111.19 	appointed by the counties and municipal committees may vote on all matters before the 
111.20 	council. The commissioner of transportation or the commissioner's designee and the three 
111.21 	members appointed by the commissioner may vote only on matters in which the council is 
111.22 	acting as the metropolitan planning organization for the region as provided in section 
111.23 	473.146.
111.24 	(b) A quorum is a majority of the members permitted to vote on a matter.
111.25 	(c) If a quorum is present, the council may adopt its levy only if at least 60 percent of 
111.26 	the members present vote in favor of the levy.
111.27 	(d) If a quorum is present, the council may adopt a metropolitan system plan or plan 
111.28 	amendment only if at least 60 percent of the members present vote in favor of its adoption.
111.29 	(e) Except as provided in paragraphs (c) and (d), if a quorum is present, the council may 
111.30 	act on a majority vote of the members present.

111.31 	EFFECTIVE DATE; TRANSITION; APPLICATION. This section is effective 
111.32 	January 1, 2019, and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
111.33 	Scott, and Washington.

112.1 	Sec. 120. Minnesota Statutes 2016, section 473.146, subdivision 3, is amended to read:
112.2 		Subd. 3.Development guide: transportation. The transportation chapter must include 
112.3 	policies relating to all transportation forms and be designed to promote the legislative 
112.4 	determinations, policies, and goals set forth in section 473.371. In addition to the 
112.5 	requirements of subdivision 1 regarding the contents of the policy plan, the nontransit 
112.6 	element of the transportation chapter must include the following:
112.7 	(1) a statement of the needs and problems of the metropolitan area with respect to the 
112.8 	functions covered, including the present and prospective demand for and constraints on 
112.9 	access to regional business concentrations and other major activity centers and the constraints 
112.10 	on and acceptable levels of development and vehicular trip generation at such centers;
112.11 	(2) the objectives of and the policies to be forwarded by the policy plan;
112.12 	(3) a general description of the physical facilities and services to be developed;
112.13 	(4) a statement as to the general location of physical facilities and service areas;
112.14 	(5) a general statement of timing and priorities in the development of those physical 
112.15 	facilities and service areas;
112.16 	(6) a detailed statement, updated every two years, of timing and priorities for 
112.17 	improvements and expenditures needed on the metropolitan highway system;
112.18 	(7) a general statement on the level of public expenditure appropriate to the facilities; 
112.19 	and
112.20 	(8) a long-range assessment of air transportation trends and factors that may affect airport 
112.21 	development in the metropolitan area and policies and strategies that will ensure a 
112.22 	comprehensive, coordinated, and timely investigation and evaluation of alternatives for 
112.23 	airport development.
112.24 	The council shall develop the nontransit element in consultation with the transportation 
112.25 	advisory board and the Metropolitan Airports Commission and cities having an airport 
112.26 	located within or adjacent to its corporate boundaries. The council shall also take into 
112.27 	consideration the airport development and operations plans and activities of the commission. 
112.28 	The council shall transmit the results to the state Department of Transportation.

112.29 	EFFECTIVE DATE; APPLICATION. This section is effective January 1, 2019, and 
112.30 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

113.1 	Sec. 121. Minnesota Statutes 2016, section 473.146, subdivision 4, is amended to read:
113.2 		Subd. 4.Transportation planning. (a) The Metropolitan Council is the designated 
113.3 	planning agency for any long-range comprehensive transportation planning required by 
113.4 	section 134 of the Federal Highway Act of 1962, Section 4 of Urban Mass Transportation 
113.5 	Act of 1964 and Section 112 of Federal Aid Highway Act of 1973 and other federal 
113.6 	transportation laws. The council shall assure administration and coordination of transportation 
113.7 	planning with appropriate state, regional and other agencies, counties, and municipalities.
113.8 	(b) The council shall establish an advisory body consisting of citizens and representatives 
113.9 	of municipalities, counties, and state agencies in fulfillment of the planning responsibilities 
113.10 	of the council. The membership of the advisory body must consist of:
113.11 	(1) the commissioner of transportation or the commissioner's designee;
113.12 	(2) the commissioner of the Pollution Control Agency or the commissioner's designee;
113.13 	(3) one member of the Metropolitan Airports Commission appointed by the commission;
113.14 	(4) one person appointed by the council to represent nonmotorized transportation;
113.15 	(5) one person appointed by the commissioner of transportation to represent the freight 
113.16 	transportation industry;
113.17 	(6) two persons appointed by the council to represent public transit;
113.18 	(7) ten elected officials of cities within the metropolitan area, including one representative 
113.19 	from each first-class city, appointed by the Association of Metropolitan Municipalities;
113.20 	(8) one member of the county board of each county in the seven-county metropolitan 
113.21 	area, appointed by the respective county boards;
113.22 	(9) eight citizens appointed by the council, one from each council precinct;
113.23 	(10) one elected official from a city participating in the replacement service program 
113.24 	under section 473.388, appointed by the Suburban Transit Association; and
113.25 	(11) one member of the council, appointed by the council.
113.26 	(c) The council shall appoint a chair from among the members of the advisory body.

113.27 	EFFECTIVE DATE; APPLICATION. This section is effective January 1, 2019, and 
113.28 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

114.1 	Sec. 122. Minnesota Statutes 2016, section 473.388, subdivision 4, is amended to read:
114.2 		Subd. 4.Financial assistance. (a) The council must grant the requested financial 
114.3 	assistance if it determines that the proposed service is intended to replace the service to the 
114.4 	applying city or town or combination thereof by the council and that the proposed service 
114.5 	will meet the needs of the applicant at least as efficiently and effectively as the existing 
114.6 	service.
114.7 	(b) The minimum amount of assistance which the council must provide to a system 
114.8 	under this section may not be less than the sum of the amounts determined calculated for 
114.9 	each municipality comprising the system as follows: of the replacement service 
114.10 	municipalities.
114.11 	(c) The minimum amount of financial assistance for each replacement service 
114.12 	municipality is calculated as:
114.13 	(1) an amount equal to 4.3 percent of the total state revenues generated from the taxes 
114.14 	imposed under chapter 297B for the current fiscal year; times
114.15 	(2) the ratio of (i) the transit operating assistance grants received under this subdivision 
114.16 	by the municipality in calendar year 2001 or the tax revenues for transit services levied by 
114.17 	the municipality for taxes payable in 2001, including that portion of the levy derived from 
114.18 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the 
114.19 	municipality's aid under Minnesota Statutes 2002, section 273.1398, subdivision 2, 
114.20 	attributable to the transit levy; times (2) the ratio of (i) an amount equal to 3.74 percent of 
114.21 	the state revenues generated from the taxes imposed under chapter 297B for the current 
114.22 	fiscal year to (ii) the total transit operating assistance grants received under this subdivision 
114.23 	in calendar year 2001 or the tax revenues for transit services levied by all replacement 
114.24 	service municipalities under this section for taxes payable in 2001, including that portion 
114.25 	of the levy derived from the areawide pool under section 473F.08, subdivision 3, clause 
114.26 	(a), plus the portion of homestead and agricultural credit aid under Minnesota Statutes 2002, 
114.27 	section 273.1398, subdivision 2, attributable to nondebt transit levies; times
114.28 	(3) the ratio of (i) the municipality's total taxable market value for taxes payable in 2006 
114.29 	divided by the municipality's total taxable market value for taxes payable in 2001, to (ii) 
114.30 	the total taxable market value of all property located in replacement service municipalities 
114.31 	for taxes payable in 2006 divided by the total taxable market value of all property located 
114.32 	in replacement service municipalities for taxes payable in 2001.
114.33 	(c) The council shall must pay the amount to be provided to the recipient from the funds 
114.34 	the council receives in the metropolitan area transit account under section 16A.88.

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

115.4 	Sec. 123. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision 
115.5 	to read:
115.6 		Subd. 6.Limitation on certain debt obligations. The council is prohibited from issuing 
115.7 	certificates of participation, certificates of indebtedness, bonds, or other obligations secured 
115.8 	in whole or in part by a pledge of motor vehicle sales tax revenue received under sections 
115.9 	16A.88 and 297B.09, or by a pledge of any earnings from the council's investment of motor 
115.10 	vehicle sales tax revenues.

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

115.14 	Sec. 124. Minnesota Statutes 2016, section 473.3994, is amended by adding a subdivision 
115.15 	to read:
115.16 		Subd. 16.Project development requirements; alternatives and benefits analysis. (a) 
115.17 	As part of light rail transit project development and prior to initiating an environmental 
115.18 	analysis or preliminary engineering, the responsible authority must perform an alternatives 
115.19 	and benefits analysis.
115.20 	(b) In addition to any other information or requirements, the alternatives and benefits 
115.21 	analysis must:
115.22 	(1) include (i) a no-build option; and (ii) options for each major transit mode, including 
115.23 	but not limited to regular route bus service, arterial bus rapid transit, highway bus rapid 
115.24 	transit, express bus service, and dedicated busway;
115.25 	(2) evaluate capacity adequacy and congestion impacts under each option;
115.26 	(3) include a comprehensive benefit-cost analysis; and
115.27 	(4) review conformity with the transportation policy plan under section 473.146.

115.28 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
115.29 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
115.30 	Scott, and Washington, for projects that have yet to formally enter the engineering phase 
115.31 	of the Federal Transit Administration's "New Starts" capital investment project program.

116.1 	Sec. 125. Minnesota Statutes 2016, section 473.4051, subdivision 2, is amended to read:
116.2 		Subd. 2.Operating costs. (a) After operating revenue and federal money have been 
116.3 	used to pay for light rail transit operations, 50 percent of the remaining operating costs for 
116.4 	a light rail transit line must be paid by the state if:
116.5 	(1) the light rail transit line is in revenue operations as of the effective date of this section; 
116.6 	or
116.7 	(2) a law is enacted on or after the effective date of this section making an appropriation 
116.8 	that (i) is from state sources, (ii) specifies the light rail transit project, and (iii) is for a portion 
116.9 	of project capital costs.
116.10 	(b) For a light rail transit line that does not meet the requirements in paragraph (a), all 
116.11 	operating and ongoing capital maintenance costs must be paid from nonstate sources.
116.12 	(c) For purposes of this subdivision, a light rail transit extension that adds additional 
116.13 	stops is a separate project or light rail transit line.

116.14 	EFFECTIVE DATE; APPLICABILITY. This section is effective the day following 
116.15 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
116.16 	Scott, and Washington.

116.17 	Sec. 126. Minnesota Statutes 2016, section 473.857, subdivision 2, is amended to read:
116.18 		Subd. 2.Within 60 days; report. A hearing shall be conducted within 60 days after the 
116.19 	request, provided that the advisory committee or the administrative law judge shall 
116.20 	consolidate hearings on related requests. The 60-day period within which the hearing shall 
116.21 	be conducted may be extended or suspended by mutual agreement of the council and the 
116.22 	local governmental unit. The hearing shall not consider the need for or reasonableness of
116.23 	the metropolitan system plans or parts thereof. The hearing shall afford all interested persons 
116.24 	an opportunity to testify and present evidence. The advisory committee or administrative 
116.25 	law judge may employ the appropriate technical and professional services of the office of 
116.26 	dispute resolution for the purpose of evaluating disputes of fact. The proceedings shall not 
116.27 	be deemed a contested case. Within 30 days after the hearing, the advisory committee or 
116.28 	the administrative law judge shall report to the council respecting the proposed amendments 
116.29 	to the system statements. The report shall contain findings of fact, conclusions, and 
116.30 	recommendations and shall apportion the costs of the proceedings among the parties.

116.31 	EFFECTIVE DATE. This section is effective January 1, 2019, and applies in the 
116.32 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

117.1 	Sec. 127. MOTOR VEHICLE PARTS SALES TAXES ESTIMATION.
 117.2 	(a) By January 15, 2019, the commissioner of revenue must submit a report on state 
117.3 	general sales taxes attributable to motor vehicle repair and replacement parts to the chairs 
117.4 	and ranking minority members of the legislative committees with jurisdiction over taxes 
117.5 	and transportation policy and finance.
117.6 	(b) The report must provide an estimate, based on federal data and department 
117.7 	consumption models, of the percentage of total sales tax revenues collected in a calendar 
117.8 	year from the tax rate imposed under Minnesota Statutes, section 297A.62, subdivision 1, 
117.9 	that is attributable to sales and purchases of motor vehicle repair and replacement parts.
117.10 	(c) For purposes of this section, "motor vehicle repair and replacement parts" has the 
117.11 	meaning given in Minnesota Statutes, section 297A.94.

117.12 	Sec. 128. TRANSPORTATION PROJECT SELECTION PROCESS.
 117.13 		Subdivision 1.Adoption of policy. (a) The commissioner of transportation, after 
117.14 	consultation with the Federal Highway Administration, metropolitan planning organizations, 
117.15 	regional development commissions, area transportation partnerships, local governments, 
117.16 	the Metropolitan Council, and transportation stakeholders, must develop, adopt, and 
117.17 	implement a policy for project evaluation and selection to apply to the project selection 
117.18 	process and to special program selection processes, such as corridors of commerce. The 
117.19 	commissioner must adopt and implement the policy no later than January 1, 2018, and may 
117.20 	update the policy as appropriate. The commissioner must publish the policy and updates 
117.21 	on the department's Web site and through other effective means selected by the commissioner.
117.22 	(b) For each selection process, the policy adopted under this section must:
117.23 	(1) establish a process that identifies criteria, the weight of each criterion, and a process 
117.24 	to score each project based on the weighted criteria; the scoring system may consider project 
117.25 	readiness as a criterion for evaluation, but project readiness must not be a major factor in 
117.26 	determining the final score;
117.27 	(2) identify and apply all relevant criteria contained in enacted Minnesota or federal law, 
117.28 	or added by the commissioner;
117.29 	(3) identify for stakeholders and the general public the candidate project selected under 
117.30 	each selection process and every project considered that was not selected;
117.31 	(4) involve area transportation partnerships and other local authorities, as appropriate, 
117.32 	in the process of scoring and ranking candidate projects under consideration;
118.1 	(5) publicize scoring and decision outcomes concerning each candidate project, including 
118.2 	the projects that were considered but not selected, and the reason each project was not 
118.3 	selected; and
118.4 	(6) require that the projects in the state transportation improvement program include the 
118.5 	score assigned to the project.
118.6 	(c) At a minimum, the policy adopted under this subdivision must conform with the 
118.7 	criteria for the corridors of commerce program under Minnesota Statutes, section 161.088, 
118.8 	and the transportation economic development program under Minnesota Statutes, section 
118.9 	174.12.
118.10 		Subd. 2.Report to legislature. By March 1, 2018, the commissioner must submit a 
118.11 	report to the chairs, ranking minority members, and staff of the legislative committees with 
118.12 	jurisdiction over transportation policy and finance concerning the adopted policy and how 
118.13 	the policy is anticipated to improve the consistency, objectivity, and transparency of the 
118.14 	selection process. The report must include information on input from members of the public 
118.15 	and the organizations identified in subdivision 1. The report must also include proposed 
118.16 	legislation to codify the policy.

118.17 	Sec. 129. CORRIDORS OF COMMERCE PROJECT ELIGIBILITY.
 118.18 	Notwithstanding the requirements of Minnesota Statutes, section 161.088, subdivisions 
118.19 	3 to 5, the commissioner of transportation must include that segment of marked U.S. Highway 
118.20 	212 from Chaska to Montevideo as an eligible highway in the next project solicitation and 
118.21 	selection process undertaken for the corridors of commerce program under that section.

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

118.23 	Sec. 130. CITY OF EXCELSIOR; ELIGIBILITY FOR REPLACEMENT SERVICE.
 118.24 	Notwithstanding Minnesota Statutes, section 473.388, subdivisions 2, 3, and 4, paragraph 
118.25 	(a), the Metropolitan Council must grant financial assistance to the city of Excelsior for 
118.26 	replacement service. Financial assistance must be provided to the city of Excelsior as 
118.27 	provided under Minnesota Statutes, section 473.388, subdivision 4, paragraphs (b) and (c). 
118.28 	The city of Excelsior is eligible to receive other assistance as provided in Minnesota Statutes, 
118.29 	section 473.388, subdivision 5, and may levy a local tax as provided in Minnesota Statutes, 
118.30 	section 473.388, subdivision 7.

119.1 	Sec. 131. DRIVER'S LICENSE AGENT IN NEW BRIGHTON.
 119.2 	(a) The commissioner of public safety must revise the appointment of the city of New 
119.3 	Brighton as a driver's license agent to provide authority to operate as a full-service driver 
119.4 	licensing office located in New Brighton city hall. This paragraph applies notwithstanding: 
119.5 	(1) Minnesota Statutes, section 171.061, subdivision 2; (2) requirements under Minnesota 
119.6 	Rules, part 7404.0300, subpart 3; and (3) procedures for county board appointment of a 
119.7 	driver's license agent, including under Minnesota Rules, part 7404.0350. All other provisions 
119.8 	regarding the appointment and operation of a driver's license agent under Minnesota Statutes, 
119.9 	section 171.061, and Minnesota Rules, chapter 7404, apply.
119.10 	(b) The commissioner must make the appointment under this section within two weeks 
119.11 	of receipt of an appointment application pursuant to the commissioner's procedures under 
119.12 	Minnesota Rules.

119.13 	Sec. 132. ELECTRONIC STORAGE STANDARDS.
 119.14 	On or before August 1, 2017, the commissioner of public safety must establish standards 
119.15 	for the conversion by deputy registrars and driver's license agents to secure electronic storage 
119.16 	of certain records under Minnesota Statutes, sections 168.33, subdivision 2, and 171.061, 
119.17 	subdivision 3. The standards must specify minimum system security requirements, as well 
119.18 	as any procedural requirements for the destruction of existing and new paper-based records, 
119.19 	consistent with the requirements of Minnesota Statutes, section 138.17. The authority to 
119.20 	establish or amend standards under this section expires August 1, 2018.

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

119.22 	Sec. 133. RULE CHANGE ON SCHOOL BUS OPERATION.
 119.23 	The commissioner of public safety must amend Minnesota Rules, part 7470.1000, subpart 
119.24 	2, so that it is consistent with Minnesota Statutes, section 169.443, subdivision 2, using the 
119.25 	good cause procedure under Minnesota Statutes, section 14.388.

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

119.27 	Sec. 134. CONVEYANCE FOR HISTORICAL PURPOSES; MCKINSTRY 
119.28 	SURPLUS LANDS.
 119.29 	(a) Notwithstanding any other law to the contrary, the commissioner may convey as 
119.30 	provided in Minnesota Statutes, section 161.44, land described in paragraph (b), including 
119.31 	any improvements on the lands, owned in fee by the state for trunk highway purposes, but 
120.1 	no longer needed, to the Minnesota Historical Society for historical purposes. The conveyance 
120.2 	must be without financial consideration. The lands conveyed must become a part of the 
120.3 	state's historic sites program under Minnesota Statutes, chapter 138.
120.4 	(b) The lands that may be conveyed are specifically related to the properties of the 
120.5 	McKinstry Mounds and portions of the McKinstry Village site owned by the Department 
120.6 	of Transportation, located along Trunk Highway 11 in Koochiching County.

120.7 	Sec. 135. DEPARTMENT OF TRANSPORTATION LOAN CONVERSION.
 120.8 	The commissioner of transportation must (1) convert the remaining balance on Contract 
120.9 	No. 82799, originally executed with the Minnesota Valley Regional Rail Authority on 
120.10 	January 28, 2002, to a grant, and (2) cancel all future payments under the contract. The 
120.11 	commissioner is prohibited from requiring or accepting additional payments under Contract 
120.12 	No. 82799 as of the effective date of this section. Notwithstanding the loan conversion and 
120.13 	payment cancellation under this section, all other terms and conditions under Contract No. 
120.14 	82799 remain effective for the duration of the period specified in the contract.

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

120.16 	Sec. 136. MARKED INTERSTATE HIGHWAY 35 WEIGH STATION; 
120.17 	MORATORIUM.
 120.18 	On or before February 1, 2018, the commissioner of transportation is prohibited from 
120.19 	designing, engineering, or constructing a motor vehicle weigh station for the southbound 
120.20 	direction of travel on marked Interstate Highway 35, between the marked Interstate Highways 
120.21 	35W/35E split and two miles northerly of the split.

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

120.23 	Sec. 137. HIGHWAY CONSTRUCTION COSTS AND COST INFLATION STUDY.
 120.24 		Subdivision 1.Highway construction cost study; requirements. (a) The commissioner 
120.25 	of transportation must enter into an agreement with an organization or entity having relevant 
120.26 	expertise to conduct a study on highway construction costs, inflation, and cost estimating. 
120.27 	The study must be designed to identify and analyze the nature of discrepancies in highway 
120.28 	construction costs and cost inflation estimates between Minnesota and other federal and 
120.29 	national measures.
120.30 	(b) At a minimum, the study must:
120.31 	(1) include an overview of highway construction cost and cost estimation issues;
121.1 	(2) establish benchmarks to compare costs in Minnesota to at least four other states that 
121.2 	are comparable based on climate and construction characteristics, including historical 
121.3 	state-by-state review of at least the following cost factors: (i) direct input costs associated 
121.4 	with highway construction, (ii) cost impacts from construction standards and requirements 
121.5 	established in law, and (iii) cost impacts from use of alternative methods of contracting and 
121.6 	project management;
121.7 	(3) identify factors specific to Minnesota, if any, that contribute to cost differences, 
121.8 	based on the benchmarks established in clause (2);
121.9 	(4) evaluate the methodology used for highway construction cost calculation and indexing 
121.10 	in Minnesota, including (i) review of associated best practices, (ii) comparison of federal 
121.11 	and Minnesota state highway construction cost index methodologies utilizing historical cost 
121.12 	data for Minnesota, (iii) identification of the reasons for any past discrepancies or differences 
121.13 	between state and federal highway construction cost indexing, and (iv) analysis of the 
121.14 	historical accuracy of the Minnesota highway construction cost index compared to actual 
121.15 	costs; and
121.16 	(5) provide specific recommendations for road authorities and legislative changes to 
121.17 	reduce highway construction costs.
121.18 	(c) By February 15, 2018, the commissioner must submit a report on the study to the 
121.19 	chairs, ranking minority members, and staff of the legislative committees with jurisdiction 
121.20 	over transportation policy and finance.
121.21 		Subd. 2.Project cost comparison report. By February 15, 2018, the commissioner of 
121.22 	transportation must report to the chairs, ranking minority members, and staff of the senate 
121.23 	and house of representatives committees and divisions with jurisdiction over transportation 
121.24 	policy and finance comparing the estimated cost of projects and the actual cost of projects. 
121.25 	The report must include all projects completed in whole or in part by MnDOT from July 1, 
121.26 	2012, to July 1, 2017. For each project, the report must list the estimated cost of the project 
121.27 	prior to starting the project and the total actual cost for the project after completion. For 
121.28 	each project, if the actual cost was less than the estimated cost, the report must explain how 
121.29 	the excess funds were expended.

121.30 	Sec. 138. VIBRATION SUSCEPTIBILITY STUDY ON CALHOUN ISLES 
121.31 	PROPERTY.
 121.32 	(a) Within 21 days from the effective date of this act, the Metropolitan Council must 
121.33 	enter into a contract with an engineering group for the engineering group to conduct a 
122.1 	vibration susceptibility study on Calhoun Isles property, including the high-rise building, 
122.2 	townhomes, and parking ramp. The study must:
122.3 	(1) evaluate the susceptibility of the Calhoun Isles property to vibration during 
122.4 	construction and during operations of a light rail train;
122.5 	(2) categorize the Calhoun Isles property based on the susceptibility evaluation; and
122.6 	(3) address mitigation measures and operational changes required to protect the Calhoun 
122.7 	Isles property from vibratory damage.
122.8 	(b) The Calhoun Isles Condominium Association must select the engineering group and 
122.9 	notify the Metropolitan Council of the selection within seven days from the effective date 
122.10 	of this act. The Metropolitan Council must bear the entire cost of the study.

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

122.14 	Sec. 139. REPORT ON DEDICATED FUND EXPENDITURES.
 122.15 	By February 15, 2018, the commissioners of transportation and public safety, in 
122.16 	consultation with the commissioner of management and budget, must jointly submit a report 
122.17 	to the members and staff of the legislative committees with jurisdiction over transportation 
122.18 	finance. The report must update the information required in the report under Laws 2015, 
122.19 	chapter 75, article 2, section 56, including a detailed list of expenditures and transfers from 
122.20 	the trunk highway fund and highway user tax distribution fund for fiscal years 2014 through 
122.21 	2018, and information on the purpose of each expenditure.

122.22 	Sec. 140. ACTIVE TRANSPORTATION PROGRAM RECOMMENDATIONS.
 122.23 	(a) By October 1, 2017, the Advisory Committee on Nonmotorized Transportation under 
122.24 	Minnesota Statutes, section 174.37, must develop and submit recommendations to the 
122.25 	commissioner of transportation regarding the project evaluation and selection processes 
122.26 	under Minnesota Statutes, section 174.38, subdivision 7.
122.27 	(b) The advisory committee is encouraged to consult with representatives from the 
122.28 	Bicycle Alliance of Minnesota; Minnesota Chamber of Commerce; Metropolitan Council 
122.29 	Transportation Accessibility Advisory Committee; Minnesota Department of Transportation 
122.30 	district area transportation partnerships; organizations representing elderly populations; 
122.31 	public health organizations with experience in active transportation; the Minnesota State 
122.32 	Council on Disability and other Minnesota state councils and commissions, including the 
123.1 	Council on Asian-Pacific Minnesotans, the Minnesota Council on Latino Affairs, the Council 
123.2 	for Minnesotans of African Heritage, the Minnesota Indian Affairs Council, the Office on 
123.3 	the Economic Status of Women, and the Cultural and Ethnic Communities Leadership 
123.4 	Council; and other stakeholders with expertise in equitable active transportation.
123.5 	(c) In its next annual report under Minnesota Statutes, section 174.37, subdivision 4, the 
123.6 	advisory committee must include a summary of the recommendations under this section 
123.7 	and submit a copy of the report to the chairs and ranking minority members of the legislative 
123.8 	committees with jurisdiction over transportation policy and finance. The report is subject 
123.9 	to Minnesota Statutes, section 3.195.

123.10 	Sec. 141. REPORT BY COMMISSIONER OF TRANSPORTATION ON MNPASS 
123.11 	LANES AND TOLLING.
 123.12 	(a) On or before January 2, 2018, the commissioner of transportation must report to the 
123.13 	chairs and ranking minority members of the senate and house of representatives committees 
123.14 	and divisions with jurisdiction over transportation policy and finance concerning MnPASS 
123.15 	lanes and tolling to reduce congestion and raise revenue.
123.16 	(b) At a minimum, the report must, with respect to MnPASS lanes:
123.17 	(1) for each lane, state the capital costs, maintenance and repair costs, and operation 
123.18 	costs;
123.19 	(2) for each lane, indicate the current condition and the projected life expectancy;
123.20 	(3) for each lane, list and explain the cost recovery ratio;
123.21 	(4) list the amounts of the deposit of revenues made each year since pursuant to Minnesota 
123.22 	Statutes, section 160.93, subdivisions 2 and 2a, including a breakdown of deposits for each 
123.23 	lane for each year the lane has been in existence;
123.24 	(5) list the cost to participate in the MnPASS program, broken down by each year a lane 
123.25 	has been in existence;
123.26 	(6) for each lane, list the total number of users, including a breakdown of the total number 
123.27 	of each type of user; and
123.28 	(7) provide an explanation of how MnPASS lane regulations are enforced.
123.29 	(c) At a minimum, the report must, with respect to tolling:
123.30 	(1) summarize current state and federal laws that affect the use of tolling in this state;
123.31 	(2) identify any federal pilot projects for which this state is eligible to participate;
124.1 	(3) discuss the feasibility and cost of expanding use of tolling, the possibility of private 
124.2 	investment in toll roads, and projected costs and cost recovery in establishing, operating, 
124.3 	and maintaining toll roads;
124.4 	(4) review tolling models and technology options;
124.5 	(5) summarize the experience of other states that have widely implemented tolling;
124.6 	(6) identify and evaluate the feasibility of toll implementation for specific corridors;
124.7 	(7) project the likely range of revenues that could be generated by wider implementation 
124.8 	of tolling and identify the percentage of revenues that are projected to be paid by nonresidents 
124.9 	of the state;
124.10 	(8) discuss options for use of tolling revenue and measures to ensure compliance with 
124.11 	laws governing operation of toll roads and use of revenues;
124.12 	(9) recommend and discuss possible ways to reduce cost to Minnesotans, such as tax 
124.13 	deductions or credits, or types of discounts; and
124.14 	(10) provide recommendations for needed statutory or rule changes that would facilitate 
124.15 	wider implementation of tolling and achieve maximum revenues for the state and equity 
124.16 	for its residents.

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

124.18 	Sec. 142. REPORT BY COMMISSIONER OF TRANSPORTATION ON 
124.19 	TURNBACKS.
 124.20 	(a) By February 15, 2018, the commissioner of transportation must report to the chairs 
124.21 	and ranking minority members of the senate and house of representatives committees having 
124.22 	jurisdiction over transportation policy and finance concerning turnbacks. At a minimum, 
124.23 	the report must include:
124.24 	(1) a current list of proposed turnback projects, including a description of each segment 
124.25 	of highway that is to be turned back; a description of the restoration work to be completed; 
124.26 	estimated cost of restoration work; to which entity the highway will be turned back; and 
124.27 	the total estimated cost related to all aspects of the turnback;
124.28 	(2) the amount that the commissioner of transportation anticipates will be needed for 
124.29 	turnbacks during the next two fiscal years and a list of the turnbacks that will be accomplished 
124.30 	with the anticipated funds;
125.1 	(3) a description of the turnback process, including an explanation of how turnback 
125.2 	projects are selected; and
125.3 	(4) for each of the past five years:
125.4 	(i) the amount of money that accrued to the county turnback account and to the municipal 
125.5 	turnback account;
125.6 	(ii) a description of each segment of highway that was restored and turned back, including 
125.7 	what restoration work was completed; total cost of restoration work; to which entity the 
125.8 	highway was turned back; and the total cost related to all aspects of the turnback;
125.9 	(iii) the amount of surplus funds, if any, that were transferred to the county state-aid 
125.10 	highway fund or to the municipal state-aid street fund pursuant to Minnesota Statutes, section 
125.11 	161.084; and
125.12 	(iv) each payment made to a local government for future restoration after the road is 
125.13 	turned back, a description of the work to be completed with the funds, and a schedule 
125.14 	detailing when the work was completed or will be completed.
125.15 	(b) By February 15, 2019, and each year thereafter, the commissioner of transportation 
125.16 	must report to the chairs and ranking minority members of the senate and house of 
125.17 	representatives committees having jurisdiction over transportation policy and finance 
125.18 	concerning turnbacks. At a minimum, the report must include:
125.19 	(1) a current list of proposed turnback projects, including a description of each segment 
125.20 	of highway that is to be turned back; a description of the restoration work to be completed; 
125.21 	estimated cost of restoration work; to which entity the highway will be turned back; and 
125.22 	the total estimated cost related to all aspects of the turnback;
125.23 	(2) the amount that the commissioner of transportation anticipates will be needed for 
125.24 	turnbacks during the next two fiscal years and a list of the turnbacks that will be accomplished 
125.25 	with the anticipated funds; and
125.26 	(3) for the past calendar year, a description of each segment of highway that was restored 
125.27 	and turned back, including what restoration work was completed; total cost of restoration 
125.28 	work; to which entity the highway was turned back; and the total cost related to all aspects 
125.29 	of the turnback.
125.30 	(c) Paragraph (b) expires after the report is submitted on February 15, 2019.

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

126.1 	Sec. 143. WORKING GROUP FOR INTERSECTION IN WILKIN COUNTY; 
126.2 	REPORT.
 126.3 	(a) By September 1, 2017, the commissioner of transportation must convene a working 
126.4 	group to consider potential options for Wilkin County Road 19 between marked Trunk 
126.5 	Highway 55 and the railroad tracks north of marked Trunk Highway 55. The working group 
126.6 	must consist of the commissioner, or designee, and one representative from each of the 
126.7 	following: Minn-Dak Farmers Cooperative; the Wilkin County Board; the town board of 
126.8 	Champion; and the city council of Nashua. By December 15, 2017, the working group must 
126.9 	identify project options to address safety concerns of local residents at this location. For 
126.10 	each identified project, the commissioner must include an estimated cost and the estimated 
126.11 	date by which the project would be completed. The working group must then identify a 
126.12 	preferred option. Based on that preferred option, the responsible parties must develop funding 
126.13 	strategies and a delivery schedule with the goal that the project be completed by December 
126.14 	31, 2019.
126.15 	(b) By January 1, 2018, the commissioner must report to the chairs, ranking minority 
126.16 	members, and staff of the senate and house of representatives committees or divisions with 
126.17 	jurisdiction over transportation policy and finance. The report must, at a minimum, include: 
126.18 	a summary of the meetings held by the working group; the project options identified and 
126.19 	the commissioner estimates associated with each option; and, if identified, the preferred 
126.20 	option and the funding and delivery schedule for that option.

126.21 	Sec. 144. METRO MOBILITY ENHANCEMENT TASK FORCE.
 126.22 		Subdivision 1.Task force established. A Metro Mobility Enhancement Task Force is 
126.23 	established to examine options to enhance Metro Mobility program service under Minnesota 
126.24 	Statutes, section 473.386. The goal of the task force is to partner with taxi services and 
126.25 	transportation network companies, as defined in Minnesota Statutes, section 65B.472, 
126.26 	subdivision 1, paragraph (e), to increase program service levels and efficiency.
126.27 		Subd. 2.Membership. (a) The task force consists of the following members:
126.28 	(1) one representative from Metro Mobility, appointed by the Metropolitan Council;
126.29 	(2) one elected official from each metropolitan county, as defined in Minnesota Statutes, 
126.30 	section 473.121, subdivision 4, each of whom must be from a district or unit of government 
126.31 	that is located within the Metro Mobility service area, appointed by the respective county 
126.32 	board in consultation with cities in that county;
127.1 	(3) at least one and no more than three individuals representing transportation network 
127.2 	companies, as defined in Minnesota Statutes, section 65B.472, subdivision 1, appointed as 
127.3 	provided under paragraph (b);
127.4 	(4) at least one and no more than three individuals representing taxi service providers, 
127.5 	appointed as provided in paragraph (c);
127.6 	(5) one representative appointed by the Transportation Accessibility Advisory Committee 
127.7 	established under Minnesota Statutes, section 473.375, subdivision 9a;
127.8 	(6) one representative appointed by the Council on Disability;
127.9 	(7) one individual appointed by the Association of Residential Resources of Minnesota; 
127.10 	and
127.11 	(8) one individual appointed by the Center for Transportation Studies at the University 
127.12 	of Minnesota.
127.13 	(b) An interested transportation network company may appoint no more than one person 
127.14 	as a task force member. Appointment under this paragraph is on a first-come, first-appointed 
127.15 	basis by written notification to the Metropolitan Council.
127.16 	(c) An interested taxi service provider may appoint no more than one person as a task 
127.17 	force member. Appointment under this paragraph is on a first-come, first-appointed basis 
127.18 	by written notification to the Metropolitan Council.
127.19 	(d) The task force members specified under paragraph (a), clauses (1), (3), and (4), are 
127.20 	nonvoting members of the task force.
127.21 		Subd. 3.Task force duties. (a) The task force must evaluate the Metro Mobility program, 
127.22 	which must include but is not limited to analysis of customer service, program costs and 
127.23 	expenditures, service coverage area and hours, reservation and scheduling, and buses and 
127.24 	equipment.
127.25 	(b) The task force must analyze approaches to improve Metro Mobility program service 
127.26 	by using partnerships with transportation network companies. At a minimum, the analysis 
127.27 	must consider:
127.28 	(1) geographic service areas of transportation network companies;
127.29 	(2) demand responsiveness and service levels of transportation network companies;
127.30 	(3) the share of trips in which specially equipped vehicles that comply with the Americans 
127.31 	with Disabilities Act are necessary;
128.1 	(4) technology accessibility for Metro Mobility customers;
128.2 	(5) liability considerations; and
128.3 	(6) integration of billing systems of transportation network companies with current Metro 
128.4 	Mobility fare collection.
128.5 	(c) The task force must analyze approaches to improve Metro Mobility program service 
128.6 	by incorporating the use of taxi service. At a minimum, the analysis must consider:
128.7 	(1) availability of taxi service throughout the Metro Mobility service area;
128.8 	(2) demand responsiveness and service levels of taxi services;
128.9 	(3) the share of trips in which specially equipped vehicles that comply with the Americans 
128.10 	with Disabilities Act are necessary;
128.11 	(4) technology accessibility for Metro Mobility customers;
128.12 	(5) liability considerations;
128.13 	(6) options for contracting with taxi providers or other methods of billing for taxi rides; 
128.14 	and
128.15 	(7) the potential to use taxi service to provide an enhanced service option where riders 
128.16 	pay a higher fare than other users of Metro Mobility Services.
128.17 	(d) The task force must review proposals and models for incorporating transportation 
128.18 	network companies and taxi service providers into transit systems in other service areas.
128.19 		Subd. 4.Administration. (a) Each appointing entity under subdivision 2 must make 
128.20 	appointments and notify the Metropolitan Council by August 1, 2017.
128.21 	(b) The Metropolitan Council representative appointed to the task force must convene 
128.22 	the initial meeting of the task force no later than September 1, 2017. At the initial meeting, 
128.23 	the members of the task force must elect a chair or cochairs from among the task force 
128.24 	members.
128.25 	(c) Upon request of the task force, the council must use existing resources to provide 
128.26 	data, information, meeting space, and administrative services.
128.27 	(d) Members of the task force serve without compensation or payment of expenses.
128.28 	(e) The task force may accept gifts and grants, which are accepted on behalf of the state 
128.29 	and constitute donations to the Metropolitan Council. Funds received under this paragraph 
128.30 	are appropriated to the Metropolitan Council for purposes of the task force.
129.1 		Subd. 5.Legislative report. (a) By February 15, 2018, the task force must submit a 
129.2 	report to the chairs and ranking minority members of the legislative committees with 
129.3 	jurisdiction over transportation policy and finance.
129.4 	(b) At a minimum the report must:
129.5 	(1) summarize the work of the task force and its findings;
129.6 	(2) describe the current Metro Mobility program;
129.7 	(3) identify at least three potential service level approaches that involve partnering with 
129.8 	and incorporating transportation network companies, taxi service providers, or both; and
129.9 	(4) provide any recommendations for program and legislative changes.
129.10 		Subd. 6.Expiration. The task force under this section expires February 15, 2018, or 
129.11 	upon submission of the report required under subdivision 5, whichever is earlier.

129.12 	Sec. 145. LEGISLATIVE ROUTE NO. 123 REMOVED.
 129.13 	(a) Minnesota Statutes, section 161.115, subdivision 54, is repealed effective the day 
129.14 	after the commissioner of transportation receives a copy of the agreement between the 
129.15 	commissioner and the governing body of Le Sueur County to transfer jurisdiction of 
129.16 	Legislative Route No. 123 and after the commissioner notifies the revisor of statutes under 
129.17 	paragraph (b).
129.18 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
129.19 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
129.20 	or in writing that the conditions required to transfer the route have been satisfied.

129.21 	Sec. 146. LEGISLATIVE ROUTE NO. 225 REMOVED.
 129.22 	(a) Minnesota Statutes, section 161.115, subdivision 156, is repealed effective the day 
129.23 	after the commissioner of transportation receives a copy of the agreement between the 
129.24 	commissioner and the governing body of Becker County to transfer jurisdiction of Legislative 
129.25 	Route No. 225 and after the commissioner notifies the revisor of statutes under paragraph 
129.26 	(b).
129.27 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
129.28 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
129.29 	or in writing that the conditions required to transfer the route have been satisfied.

130.1 	Sec. 147. REVISOR'S INSTRUCTION.
 130.2 	The revisor of statutes shall recodify Minnesota Statutes, section 174.93, as Minnesota 
130.3 	Statutes, section 473.4485. The revisor shall correct any cross-references made necessary 
130.4 	by the recodification.

130.5 	Sec. 148.  REPEALER.
 130.6 	(a) Minnesota Statutes 2016, sections 160.262, subdivision 2; 160.265; and 160.266, 
130.7 	subdivisions 1 and 2, are repealed.
130.8 	(b) Minnesota Statutes 2016, section 161.115, subdivision 32, is repealed.
130.9 	(c) Minnesota Statutes 2016, sections 165.15, subdivision 8; and 219.375, subdivision 
130.10 	4, are repealed.
130.11 	(d) Minnesota Statutes 2016, section 169.4502, subdivision 5, is repealed.
130.12 	(e) Minnesota Rules, parts 8810.0800, subpart 3; and 8810.1300, subpart 4, are repealed.
130.13 	(f) Minnesota Rules, parts 8810.6000; 8810.6100; 8810.6300; 8810.6400; 8810.6500; 
130.14 	8810.6600; 8810.6700; 8810.6800; 8810.6900; 8810.7000; 8810.9910; 8810.9911; 
130.15 	8810.9912; and 8810.9913, are repealed.
130.16 	(g) Laws 1994, chapter 628, article 1, section 8, is repealed.

130.17 	EFFECTIVE DATE. Paragraph (g) is effective January 1, 2019, and applies in the 
130.18 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

APPENDIX 

Repealed Minnesota Statutes: HF0861-6 

160.262 BIKEWAYS.No active language found for: 160.262.2No active language found for: 160.265160.266 STATE BICYCLE ROUTES.No active language found for: 160.266.1No active language found for: 160.266.2161.115 ADDITIONAL TRUNK HIGHWAYS.No active language found for: 161.115.32165.15 STILLWATER LIFT BRIDGE ENDOWMENT ACCOUNT.No active language found for: 165.15.8169.4502 ADDITIONAL MINNESOTA SCHOOL BUS CHASSIS STANDARDS.No active language found for: 169.4502.5219.375 RAILROAD YARD LIGHTING.No active language found for: 219.375.4
Repealed Minnesota Session Laws: HF0861-6 

Laws 1994, chapter 628, article 1, section 8
Sec. 8. SALARIES OF MEMBERS. 
Until changed in law after recommendation by the compensation council as provided in Minnesota Statutes, section 15A.082, the chair of the metropolitan council shall receive a salary of $52,500 per year, and the other members shall receive a salary of $20,000 per year. 

8810.0800SCENIC AREAS.   Subp. 3.
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.1300PERMITS, FEES, AND RENEWALS.   Subp. 4.
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.6000
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.6100
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.6300
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.6400
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.6500
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.6600
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.6700
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.6800
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.6900
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.7000
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.9910
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.9911
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.9912
[Repealed, L 2017 1Sp3 art 3 s 144] 

8810.9913
[Repealed, L 2017 1Sp3 art 3 s 144]