1.1 	A bill for an act
1.2 	relating to transportation; establishing a supplemental budget for transportation 
1.3 	activities; modifying various provisions governing transportation policy and finance; 
1.4 	appropriating money; requiring reports; authorizing the sale and issuance of state 
1.5 	bonds;amending Minnesota Statutes 2016, sections 13.461, by adding a 
1.6 	subdivision; 13.6905, subdivision 3; 13.72, subdivision 10; 160.295, subdivision 
1.7 	5; 161.115, subdivision 111; 161.14, by adding subdivisions; 161.32, subdivision 
1.8 	2; 168.10, subdivision 1h; 168.101, subdivision 2a; 168.127, subdivision 6; 168.326; 
1.9 	168.33, by adding a subdivision; 168.345, subdivision 2; 168A.02, subdivision 1; 
1.10 	168A.151, subdivision 1; 168A.29, subdivision 1; 169.011, subdivisions 5, 9, 60; 
1.11 	169.18, subdivision 3; 169.222, subdivisions 1, 4; 169.26, subdivision 1; 169.28; 
1.12 	169.29; 169.345, subdivision 2; 169.4503, subdivision 5; 169.81, by adding a 
1.13 	subdivision; 169.8261, subdivision 2; 169.829, by adding a subdivision; 169.87, 
1.14 	subdivision 6; 169.974, subdivision 2; 174.66; 221.031, subdivision 2d, by adding 
1.15 	a subdivision; 221.0314, subdivision 9; 221.036, subdivisions 1, 3; 221.122, 
1.16 	subdivision 1; 221.161, subdivision 1, by adding a subdivision; 221.171, subdivision 
1.17 	1; 222.46; 222.50, subdivisions 3, 4; 222.52; 222.57; 222.63, subdivision 8; 
1.18 	297A.993, by adding a subdivision; 299A.705; 360.013, by adding a subdivision; 
1.19 	360.017, subdivision 1; 360.021, subdivision 1; 360.062; 360.063, subdivisions 
1.20 	1, 3; 360.064, subdivision 1; 360.065, subdivision 1; 360.066, subdivision 1; 
1.21 	360.067, by adding a subdivision; 360.071, subdivision 2; 360.305, subdivision 
1.22 	6; 394.22, by adding a subdivision; 394.23; 394.231; 394.25, subdivision 3; 
1.23 	462.352, by adding a subdivision; 462.355, subdivision 1; 462.357, subdivision 
1.24 	9, by adding a subdivision; 473.13, by adding subdivisions; 473.386, subdivision 
1.25 	3, by adding a subdivision; 473.4051, subdivision 3; 574.26, subdivision 1a; 
1.26 	Minnesota Statutes 2017 Supplement, sections 3.972, subdivision 4; 160.02, 
1.27 	subdivision 1a; 169.829, subdivision 4; 171.06, subdivision 2; 473.4051, 
1.28 	subdivision 2; Laws 2014, chapter 312, article 11, section 38, subdivisions 5, 6; 
1.29 	Laws 2017, First Special Session chapter 3, article 1, sections 2, subdivision 2; 4, 
1.30 	subdivisions 1, 2; proposing coding for new law in Minnesota Statutes, chapters 
1.31 	161; 168; 174; 222; 299A; 360; repealing Minnesota Statutes 2016, sections 
1.32 	168.013, subdivision 21; 221.161, subdivisions 2, 3, 4; 222.47; 222.50, subdivisions 
1.33 	1, 7; 222.51; 360.063, subdivision 4; 360.065, subdivision 2; 360.066, subdivisions 
1.34 	1a, 1b; Minnesota Statutes 2017 Supplement, sections 222.49; 222.50, subdivision 
1.35 	6.
1.36 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	TRANSPORTATION APPROPRIATIONS

2.3	Section 1. APPROPRIATIONS.
 	
2.4 	The sums shown in the column under "Appropriations" are added to the appropriations 
2.5 	in Laws 2017, First Special Session chapter 3, article 1, to the agencies and for the purposes 
2.6 	specified in this article. The appropriations are from the general fund, or another named 
2.7 	fund, and are available for the fiscal years indicated for each purpose. Amounts for "Total 
2.8 	Appropriation" and sums shown in the corresponding columns marked "Appropriations by 
2.9 	Fund" are summary only and do not have legal effect. The figures "2018" and "2019" used 
2.10 	in this article mean that the addition to the appropriation listed under them is available for 
2.11 	the fiscal year ending June 30, 2018, or June 30, 2019, respectively.

2.12				APPROPRIATIONS
	
2.13				Available for the Year
	
2.14				Ending June 30
	
2.15					2018
		2019

2.16
2.17	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

2.18	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	135,539,000

2.19	Appropriations by Fund
	
2.20		2018
	2019
	
2.21	General
	-0-
	22,230,000
	
2.22	Special Revenue
	-0-
	1,550,000
	
2.23	C.S.A.H.
	-0-
	24,945,000
	
2.24	M.S.A.S.
	-0-
	6,552,000
	
2.25	Trunk Highway
	-0-
	80,750,000
	
2.26 	The appropriations in this section are to the 
2.27 	commissioner of transportation. The amounts 
2.28 	that may be spent for each purpose are 
2.29 	specified in the following subdivisions.

2.30	Subd. 2.Aeronautics
 		-0-
		2,000,000
	
2.31 	This appropriation is for a grant to the city of 
2.32 	Rochester to acquire and install a CAT II 
2.33 	approach system at the Rochester International 
2.34 	Airport. This appropriation is available when 
3.1 	the commissioner of management and budget 
3.2 	determines that sufficient resources have been 
3.3 	committed to complete the project, as required 
3.4 	by Minnesota Statutes, section 16A.502, and 
3.5 	is available until the project is completed or 
3.6 	abandoned, subject to Minnesota Statutes, 
3.7 	section 16A.642. This is a onetime 
3.8 	appropriation.

3.9	Subd. 3.Freight Rail

3.10	(a) Freight Rail Economic Development (FRED)
		-0-
		5,000,000
	
3.11 	This appropriation is for the freight rail 
3.12 	economic development program under 
3.13 	Minnesota Statutes, section 222.505.
3.14 	The base is $2,000,000 in each of fiscal years 
3.15 	2020 and 2021.

3.16	(b) Rice Creek Railroad Bridge
		-0-
		1,550,000
	
3.17 	This appropriation is from the freight rail 
3.18 	account in the special revenue fund under the 
3.19 	freight rail economic development program 
3.20 	in Minnesota Statutes, section 222.505, for 
3.21 	the grant under section 11. This appropriation 
3.22 	is available when the commissioner of 
3.23 	management and budget determines that 
3.24 	sufficient resources have been committed to 
3.25 	complete the project, as required by Minnesota 
3.26 	Statutes, section 16A.502, and is available 
3.27 	until the project is completed or abandoned 
3.28 	subject to Minnesota Statutes, section 
3.29 	16A.642. This is a onetime appropriation.

3.30	Subd. 4.State Roads
 					
3.31 	Unless otherwise specified, the appropriations 
3.32 	in this subdivision are from the trunk highway 
3.33 	fund.

3.34	(a) Operations and Maintenance
		-0-
		11,095,000
	
4.1 	This is a onetime appropriation.

4.2	(b) Program Planning and Delivery

4.3	(1) Planning and Research
		-0-
		2,094,000
	
4.4 	If a balance remains of this appropriation, the 
4.5 	commissioner may transfer up to that amount 
4.6 	for program delivery under clause (2).
4.7 	$500,000 in the second year is to conduct a 
4.8 	study on the feasibility of an interchange at 
4.9 	marked Interstate Highway 35 and County 
4.10 	Road 9 in Rice County. At a minimum, the 
4.11 	study must include estimated construction 
4.12 	costs, traffic modeling, an environmental 
4.13 	analysis, and a potential design layout for an 
4.14 	interchange.
4.15 	$500,000 in the second year is to conduct a 
4.16 	study on the feasibility of expanding or 
4.17 	reconstructing marked Interstate Highway 94 
4.18 	from the city of St. Michael to the city of St. 
4.19 	Cloud. At a minimum, the study must include 
4.20 	traffic modeling and an environmental 
4.21 	analysis.
4.22 	This is a onetime appropriation.

4.23	(2) Program Delivery
		-0-
		13,317,000

4.24	Appropriations by Fund
	
4.25		2018
	2019
	
4.26	General
	-0-
	6,230,000
	
4.27	Trunk Highway
	-0-
	7,087,000
	
4.28 	This appropriation includes use of consultants 
4.29 	to support development and management of 
4.30 	projects. This is a onetime appropriation.
4.31 	$5,400,000 in the second year is from the 
4.32 	general fund for a grant to the city of Virginia 
4.33 	to repay loans incurred by the city for costs 
4.34 	related to utility relocation for the U.S. 
5.1 	Highway 53 project. This is a onetime 
5.2 	appropriation.
5.3 	$830,000 in the second year is from the 
5.4 	general fund for a grant to the city of Mankato 
5.5 	for a project to increase the height of a levee 
5.6 	and related construction on a segment of 
5.7 	marked Trunk Highway 169 north of the 
5.8 	Highway 14 interchange to accommodate the 
5.9 	raising of a levee. This appropriation is for the 
5.10 	local share the city of Mankato would be 
5.11 	responsible for under the state's Cost 
5.12 	Participation and Maintenance with Local 
5.13 	Units of Government Manual, or any contract 
5.14 	between the state and the city of Mankato. 
5.15 	This is a onetime appropriation and is 
5.16 	available when the commissioner of 
5.17 	management and budget determines that 
5.18 	sufficient resources have been committed to 
5.19 	complete the project, as required by Minnesota 
5.20 	Statutes, section 16A.502.

5.21	(c) State Road Construction
		-0-
		48,155,000
	
5.22 	This appropriation is for the actual 
5.23 	construction, reconstruction, and improvement 
5.24 	of trunk highways, including design-build 
5.25 	contracts, internal department costs associated 
5.26 	with delivering the construction program, 
5.27 	consultant use to support the activities, and 
5.28 	the cost of actual payments to landowners for 
5.29 	lands acquired for highway rights-of-way, 
5.30 	payment to lessees, interest subsidies, and 
5.31 	relocation expenses. This is a onetime 
5.32 	appropriation.
5.33 	For any trunk highway reconstruction or 
5.34 	resurfacing project in 2020 or 2021 that 
5.35 	includes establishment of one or more 
6.1 	temporary lanes of travel, the commissioner 
6.2 	must establish additional permanent general 
6.3 	purpose lanes for that segment if (1) the 
6.4 	project is on an Interstate Highway; (2) the 
6.5 	total project cost estimate is at least 
6.6 	$30,000,000; and (3) the annual average daily 
6.7 	traffic is at least 40,000 at any point within 
6.8 	the project limits.

6.9	(d) Corridors of Commerce
		-0-
		10,000,000
	
6.10 	This appropriation is for the corridors of 
6.11 	commerce program under Minnesota Statutes, 
6.12 	section 161.088. This is a onetime 
6.13 	appropriation.

6.14	(e) Highway Debt Service
		-0-
		2,319,000
	
6.15 	$2,319,000 in fiscal year 2019 is for transfer 
6.16 	to the state bond fund. If this appropriation is 
6.17 	insufficient to make all transfers required in 
6.18 	the year for which it is made, the 
6.19 	commissioner of management and budget must 
6.20 	transfer the deficiency amount under the 
6.21 	statutory open appropriation and notify the 
6.22 	chairs, ranking minority members, and staff 
6.23 	of the legislative committees with jurisdiction 
6.24 	over transportation finance and the chairs of 
6.25 	the senate Finance Committee and the house 
6.26 	of representatives Ways and Means Committee 
6.27 	of the amount of the deficiency. Any excess 
6.28 	appropriation cancels to the trunk highway 
6.29 	fund.

6.30	Subd. 5.Local Roads

6.31	(a) County State-Aid Roads
		-0-
		24,945,000
	
6.32 	This appropriation is from the county state-aid 
6.33 	highway fund under Minnesota Statutes, 
6.34 	sections 161.081 and 297A.815, subdivision 
7.1 	3, and Minnesota Statutes, chapter 162, and 
7.2 	is available until June 30, 2027. This is a 
7.3 	onetime appropriation.

7.4	(b) Municipal State-Aid Roads
		-0-
		6,552,000
	
7.5 	This appropriation is from the municipal 
7.6 	state-aid street fund under Minnesota Statutes, 
7.7 	chapter 162, and is available until June 30, 
7.8 	2027. This is a onetime appropriation.

7.9	(c) Small Cities Assistance
		-0-
		7,000,000
	
7.10 	This appropriation is for the small cities 
7.11 	assistance program under Minnesota Statutes, 
7.12 	section 162.145.
7.13 	The base is $8,081,000 in fiscal year 2020 and 
7.14 	$8,082,000 in fiscal year 2021.

7.15	(d) Town Roads
		-0-
		2,000,000
	
7.16 	This appropriation is for town roads, to be 
7.17 	distributed in the manner provided under 
7.18 	Minnesota Statutes, section 162.081. This is 
7.19 	a onetime appropriation.

7.20	Subd. 6.Tribal Training Program
 					
7.21 	The commissioner must implement 
7.22 	interagency billing to state agencies for costs 
7.23 	related to that agency's participation in tribal 
7.24 	training activities provided by the Department 
7.25 	of Transportation.

7.26	Sec. 3. METROPOLITAN COUNCIL
 	$
	-0-
	$
	3,500,000
	
7.27 	This appropriation is for financial assistance 
7.28 	to replacement service providers under 
7.29 	Minnesota Statutes, section 473.388, for the 
7.30 	purposes of the suburb-to-suburb transit 
7.31 	project authorized under Laws 2015, chapter 
7.32 	75, article 1, section 4. Of the amount in the 
7.33 	second year, $2,500,000 is for capital 
8.1 	improvements, including bus replacement, 
8.2 	associated with the project. The replacement 
8.3 	service providers must collectively identify 
8.4 	and notify the Metropolitan Council of the 
8.5 	capital expenditures under this rider, and the 
8.6 	Metropolitan Council must allocate funds as 
8.7 	directed by the replacement service providers. 
8.8 	The council is prohibited from retaining any 
8.9 	portion of the funds under this appropriation. 
8.10 	This is a onetime appropriation.
8.11 	Notwithstanding Laws 2017, First Special 
8.12 	Session chapter 3, article 1, section 3, the base 
8.13 	is $90,747,000 in fiscal year 2020 and 
8.14 	$90,730,000 in fiscal year 2021.

8.15
8.16	Sec. 4. DEPARTMENT OF MANAGEMENT 
AND BUDGET
 	$
	9,000,000
	$
	-0-
	
8.17 	This appropriation is for reimbursement grants 
8.18 	to deputy registrars under Minnesota Statutes, 
8.19 	section 168.335, provided that the time period 
8.20 	under Minnesota Statutes, section 168.335, 
8.21 	subdivision 3, paragraph (a), clause (1), is 
8.22 	August 1, 2017, through January 31, 2018.
8.23 	$6,265,000 in the first year is from the driver 
8.24 	services operating account and $2,735,000 in 
8.25 	the first year is from the vehicle services 
8.26 	operating account.
8.27 	For the appropriation in the first year, the 
8.28 	commissioner of management and budget must 
8.29 	make efforts to reimburse deputy registrars 
8.30 	within 30 days of the effective date of this 
8.31 	section.
8.32 	The base from the general fund is $9,000,000 
8.33 	in each of fiscal years 2020 and 2021. The 
8.34 	base from the driver services operating 
9.1 	account is $0 in each of fiscal years 2020 and 
9.2 	2021. The base from the vehicle services 
9.3 	operating account is $0 in each of fiscal years 
9.4 	2020 and 2021.

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

9.6 	Sec. 5. Laws 2017, First Special Session chapter 3, article 1, section 2, subdivision 2, is 
9.7 	amended to read:

9.8	Subd. 2.Multimodal Systems
 					
9.9 	(a) Aeronautics

9.10	(1) Airport Development and Assistance
		26,001,000
		16,598,000
	
9.11 	This appropriation is from the state airports 
9.12 	fund and must be spent according to 
9.13 	Minnesota Statutes, section 360.305, 
9.14 	subdivision 4.
9.15 	Notwithstanding Minnesota Statutes, section 
9.16 	16A.28, subdivision 6, this appropriation is 
9.17 	available for five years after the year of the 
9.18 	appropriation. If the appropriation for either 
9.19 	year is insufficient, the appropriation for the 
9.20 	other year is available for it.
9.21 	$6,619,000 in the first year is for a grant to 
9.22 	the Duluth Airport Authority for 
9.23 	improvements at the Duluth International 
9.24 	Airport and the Sky Harbor Airport in 
9.25 	accordance with Minnesota Statutes, section 
9.26 	360.017. For the purposes of this 
9.27 	appropriation, the commissioner may waive 
9.28 	the requirements of Minnesota Statutes, 
9.29 	section 360.305, subdivision 4, paragraph (b). 
9.30 	This appropriation may be used to reimburse 
9.31 	the Authority for costs incurred after March 
9.32 	1, 2015. This is a onetime appropriation.
10.1 	$2,334,000 in the first year is for a grant to 
10.2 	the city of Rochester for improvements to the 
10.3 	passenger terminal building at the Rochester 
10.4 	International Airport in accordance with 
10.5 	Minnesota Statutes, section 360.017. For the 
10.6 	purposes of this appropriation, the 
10.7 	commissioner of transportation may waive the 
10.8 	requirements of Minnesota Statutes, section 
10.9 	360.305, subdivision 4, paragraph (b). This 
10.10 	appropriation may be used to reimburse the 
10.11 	city for costs incurred after May 1, 2016. This 
10.12 	is a onetime appropriation.
10.13 	Notwithstanding Minnesota Statutes, section 
10.14 	360.017, $250,000 in the first year is for a 
10.15 	grant to the city of St. Cloud for an air 
10.16 	transport optimization planning study for the 
10.17 	St. Cloud Regional Airport. The study must 
10.18 	be comprehensive and market-based, using 
10.19 	economic development and air service 
10.20 	expertise to research, analyze, and develop 
10.21 	models and strategies that maximize the return 
10.22 	on investments made to enhance the use and 
10.23 	impact of the St. Cloud Regional Airport. By 
10.24 	January 5, 2018, the city of St. Cloud shall 
10.25 	submit a report to the governor and the 
10.26 	members and staff of the legislative 
10.27 	committees with jurisdiction over capital 
10.28 	investment, transportation, and economic 
10.29 	development with recommendations based on 
10.30 	the findings of the study. This is a onetime 
10.31 	appropriation.
10.32 	If the commissioner of transportation 
10.33 	determines that a balance remains in the state 
10.34 	airports fund following the appropriations 
10.35 	made in this article and that the appropriations 
11.1 	made are insufficient for advancing airport 
11.2 	development and assistance projects, an 
11.3 	amount necessary to advance the projects, not 
11.4 	to exceed the balance in the state airports fund, 
11.5 	is appropriated in each year to the 
11.6 	commissioner and must be spent according to 
11.7 	Minnesota Statutes, section 360.305, 
11.8 	subdivision 4. Within two weeks of a 
11.9 	determination under this contingent 
11.10 	appropriation, the commissioner of 
11.11 	transportation must notify the commissioner 
11.12 	of management and budget and the chairs, 
11.13 	ranking minority members, and staff of the 
11.14 	legislative committees with jurisdiction over 
11.15 	transportation finance concerning the funds 
11.16 	appropriated. Funds appropriated under this 
11.17 	contingent appropriation do not adjust the base 
11.18 	for fiscal years 2020 and 2021.
11.19 	The base is $15,298,000 in each of fiscal years 
11.20 	2020 and 2021.

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

11.22	Appropriations by Fund
	
11.23		2018
	2019
	
11.24	Airports
	5,231,000
	5,231,000
	
11.25	Trunk Highway
	1,479,000
	1,623,000

11.26	(3) Civil Air Patrol
		3,580,000
		80,000
	
11.27 	This appropriation is from the state airports 
11.28 	fund for the Civil Air Patrol.
11.29 	$3,500,000 in the first year is for a grant to: 
11.30 	(1) perform site selection and analysis; (2) 
11.31 	purchase, renovate a portion of and, or
11.32 	construct an addition to the training and 
11.33 	maintenance facility located at the South St. 
11.34 	Paul airport, facilities; and to (3) furnish and 
11.35 	equip the facility facilities, including 
12.1 	communications equipment. If the Civil Air 
12.2 	Patrol purchases an existing facility, predesign 
12.3 	requirements are waived. The facilities must 
12.4 	be located at an airport in Minnesota. 
12.5 	Notwithstanding the matching requirements 
12.6 	in Minnesota Statutes, section 360.305, 
12.7 	subdivision 4, a nonstate contribution is not 
12.8 	required for this appropriation.
12.9 	Notwithstanding Minnesota Statutes, section 
12.10 	16A.28, subdivision 6, this appropriation is 
12.11 	available for five six years after the year of 
12.12 	the appropriation. This is a onetime 
12.13 	appropriation.

12.14	(b) Transit
		1,416,000
		18,268,000

12.15	Appropriations by Fund
	
12.16		2018
	2019
	
12.17	General
	570,000
	17,395,000
	
12.18	Trunk Highway
	846,000
	873,000
	
12.19 	$150,000 in each year is from the general fund 
12.20 	for grants to transportation management 
12.21 	organizations that provide services exclusively 
12.22 	or primarily in the city located along the 
12.23 	marked Interstate Highway 494 corridor 
12.24 	having the highest population as of the 
12.25 	effective date of this section. The 
12.26 	commissioner must not retain any portion of 
12.27 	the funds appropriated under this section. 
12.28 	From the appropriation in each fiscal year, the 
12.29 	commissioner must make grant payments in 
12.30 	full by July 31. Permissible uses of funds 
12.31 	under this grant include administrative 
12.32 	expenses and programming and service 
12.33 	expansion, including but not limited to 
12.34 	staffing, communications, outreach and 
12.35 	education program development, and 
13.1 	operations management. This is a onetime 
13.2 	appropriation.
13.3 	The base from the general fund is $17,245,000 
13.4 	in each year for fiscal years 2020 and 2021.

13.5	(c) Safe Routes to School
		500,000
		500,000
	
13.6 	This appropriation is from the general fund 
13.7 	for the safe routes to school program under 
13.8 	Minnesota Statutes, section 174.40.

13.9	(d) Passenger Rail
		500,000
		500,000
	
13.10 	This appropriation is from the general fund 
13.11 	for passenger rail system planning, alternatives 
13.12 	analysis, environmental analysis, design, and 
13.13 	preliminary engineering under Minnesota 
13.14 	Statutes, sections 174.632 to 174.636.
13.15 	(e) Freight

13.16	Freight and Commercial Vehicle Operations
		8,506,000
		6,578,000

13.17	Appropriations by Fund
	
13.18		2018
	2019
	
13.19	General
	3,156,000
	1,056,000
	
13.20	Trunk Highway
	5,350,000
	5,522,000
	
13.21 	$1,100,000 in the first year is from the general 
13.22 	fund for port development assistance grants 
13.23 	under Minnesota Statutes, chapter 457A, to 
13.24 	the city of Red Wing and to the Port Authority 
13.25 	of Winona. Any improvements made with the 
13.26 	proceeds of the grants must be publicly owned. 
13.27 	This is a onetime appropriation and is 
13.28 	available in the second year.
13.29 	$800,000 in each year is from the general fund 
13.30 	for additional rail safety and rail service 
13.31 	activities.
13.32 	$1,000,000 in the first year is from the general 
13.33 	fund for a grant to the city of Grand Rapids to 
14.1 	fund rail planning studies, design, and 
14.2 	preliminary engineering relating to the 
14.3 	construction of a freight rail line located in the 
14.4 	counties of Itasca, St. Louis, and Lake to serve 
14.5 	local producers and shippers. The city of 
14.6 	Grand Rapids shall collaborate with the Itasca 
14.7 	Economic Development Corporation and the 
14.8 	Itasca County Regional Railroad Authority in 
14.9 	the activities funded with the proceeds of this 
14.10 	grant. This is a onetime appropriation and is 
14.11 	available until June 30, 2019.

14.12 	Sec. 6. Laws 2017, First Special Session chapter 3, article 1, section 4, subdivision 1, is 
14.13 	amended to read:

14.1514.14
	Subdivision 1.Total Appropriation
 	$
	199,838,000
	$
	199,407,000
198,041,000

14.16	Appropriations by Fund
	
14.17		2018
	2019
	
14.18	General
	19,971,000
	14,381,000
	
14.19	Special Revenue
	63,945,000
	65,087,000
	
14.2114.20
	H.U.T.D.
	10,474,000
	10,486,000
9,120,000
	
14.22	Trunk Highway
	105,448,000
	109,453,000
	
14.23 	The appropriations in this section are to the 
14.24 	commissioner of public safety. The amounts 
14.25 	that may be spent for each purpose are 
14.26 	specified in the following subdivisions.

14.27 	Sec. 7. Laws 2017, First Special Session chapter 3, article 1, section 4, subdivision 2, is 
14.28 	amended to read:

14.29	Subd. 2.Administration and Related Services

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

14.31	Appropriations by Fund
	
14.32		2018
	2019
	
14.33	General
	127,000
	130,000
	
14.34	Trunk Highway
	426,000
	443,000

15.215.1
	(b) Public Safety Support
		6,372,000
		6,569,000
5,203,000

15.3	Appropriations by Fund
	
15.4		2018
	2019
	
15.5	General
	1,225,000
	1,235,000
	
15.715.6
	H.U.T.D.
	1,366,000
	1,366,000
-0-
	
15.8	Trunk Highway
	3,781,000
	3,968,000

15.9	(c) Public Safety Officer Survivor Benefits
		640,000
		640,000
	
15.10 	This appropriation is from the general fund 
15.11 	for payment of public safety officer survivor 
15.12 	benefits under Minnesota Statutes, section 
15.13 	299A.44.
15.14 	If the appropriation for either year is 
15.15 	insufficient, the appropriation for the other 
15.16 	year is available for it.

15.17	(d) Public Safety Officer Reimbursements
		1,367,000
		1,367,000
	
15.18 	This appropriation is from the general fund to 
15.19 	be deposited in the public safety officer's 
15.20 	benefit account. This money is available for 
15.21 	reimbursements under Minnesota Statutes, 
15.22 	section 299A.465.

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

15.24	Appropriations by Fund
	
15.25		2018
	2019
	
15.26	General
	600,000
	600,000
	
15.27	Trunk Highway
	100,000
	100,000
	
15.28 	This appropriation is for soft body armor 
15.29 	reimbursements under Minnesota Statutes, 
15.30 	section 299A.38.

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

15.32	Appropriations by Fund
	
15.33		2018
	2019
	
15.34	General
	1,353,000
	1,365,000
	
15.35	H.U.T.D.
	19,000
	19,000
	
16.1	Trunk Highway
	2,405,000
	2,430,000

16.2 	Sec. 8. HIGHWAY USER TAX DISTRIBUTION FUND TRANSFER.
 16.3 	$75,270,000 in fiscal year 2019 is transferred from the general fund to the commissioner 
16.4 	of transportation for deposit in the highway user tax distribution fund.

16.5 	Sec. 9. RAIL SERVICE IMPROVEMENT ACCOUNT TRANSFER.
 16.6 	On June 30, 2018, the commissioner of transportation must transfer the entire balance 
16.7 	in the rail service improvement account to the freight rail account in the special revenue 
16.8 	fund. Any encumbrance from the rail service improvement account made before the transfer 
16.9 	remains in effect from the freight rail account following the transfer.

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

16.11 	Sec. 10. DRIVER AND VEHICLE SERVICES FUND.
 16.12 	The appropriations in fiscal year 2019 from the driver services operating account and 
16.13 	from the vehicle services operating account under Laws 2017, First Special Session chapter 
16.14 	3, article 1, section 4, are available from the corresponding account in the driver and vehicle 
16.15 	services fund under Minnesota Statutes, sections 299A.704 and 299A.705, for the purposes 
16.16 	specified under Laws 2017, First Special Session chapter 3, article 1, section 4.

16.17 	Sec. 11. RICE CREEK RAILROAD BRIDGE.
 16.18 	(a) From funds specifically made available for purposes of this section, the commissioner 
16.19 	of transportation must provide a grant to Minnesota Commercial Railway Company to 
16.20 	demolish the existing railroad bridge over Rice Creek in New Brighton and to predesign, 
16.21 	design, acquire any needed right-of-way, engineer, construct, and equip a replacement 
16.22 	railroad bridge to meet the needs of the railroad operators that use the bridge.
16.23 	(b) The grant under this section is contingent on:
16.24 	(1) review and approval of the railway company's design, engineering, and plans for the 
16.25 	project by Ramsey County to ensure the project does not interfere with recreational use of 
16.26 	adjacent park property and Rice Creek, and by the Rice Creek Watershed District to ensure 
16.27 	that the project's impact on flows in the creek complies with the watershed district's adopted 
16.28 	rules. These reviews and approvals are in addition to any other reviews, permits, or approvals 
16.29 	required for the project;
17.1 	(2) Minnesota Commercial Railway Company removing all structures related to the 
17.2 	existing bridge, including any pilings, footings, or water control structures placed to protect 
17.3 	the existing bridge structures, from the Rice Creek streambed as part of the demolition and 
17.4 	removal of the existing bridge, except to the extent prohibited by a permitting authority, 
17.5 	including but not limited to the Department of Natural Resources and the United States 
17.6 	Army Corps of Engineers. The replacement bridge and structures are the property of the 
17.7 	owner of the railroad right-of-way and railroad operator, as may be arranged between them; 
17.8 	and
17.9 	(3) Minnesota Commercial Railway Company entering into an agreement with Ramsey 
17.10 	County that: (i) grants the company access to both construct and perform ongoing 
17.11 	maintenance on the bridge; and (ii) provides for repair of the county trail damaged by railway 
17.12 	maintenance work that occurred on the two years before the effective date of this section, 
17.13 	as well as immediately after  construction and any subsequent maintenance activities.
17.14 	(c) By entering into a grant agreement with the commissioner of transportation, Minnesota 
17.15 	Commercial Railway Company agrees to cooperate with the city of New Brighton and 
17.16 	Ramsey County to develop crossings and trails in or near to the railway right-of-way in the 
17.17 	city.

17.18 	ARTICLE 2
17.19 	TRANSPORTATION BONDS

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

17.28	SUMMARY
	
17.29	Department of Transportation
	$
	250,000,000
	
17.30	Department of Management and Budget
		250,000
	
17.31	TOTAL
	$
	250,250,000

17.32						APPROPRIATIONS

18.1
18.2	Sec. 2. DEPARTMENT OF 
TRANSPORTATION

18.3	Subdivision 1.Corridors of Commerce
 			$
	145,000,000
	
18.4 	This appropriation is to the commissioner of 
18.5 	transportation for the corridors of commerce 
18.6 	program under Minnesota Statutes, section 
18.7 	161.088.
18.8 	The commissioner may use up to 17 percent 
18.9 	of the amount for program delivery.

18.10	Subd. 2.Trunk Highway-Rail Grade Separations
 			$
	75,000,000
	
18.11 	This appropriation is to the commissioner of 
18.12 	transportation for trunk highway-rail grade 
18.13 	separation projects (1) identified as priority 
18.14 	grade separation recommendations in the final 
18.15 	report on highway-rail grade crossing 
18.16 	improvements submitted under Laws 2014, 
18.17 	chapter 312, article 10, section 10; and (2) for 
18.18 	which trunk highway bond proceeds are a 
18.19 	permissible use. The commissioner must first 
18.20 	prioritize grade separation projects that 
18.21 	eliminate a skewed intersection of two trunk 
18.22 	highways.
18.23 	If any proceeds under this subdivision remain 
18.24 	following a determination by the 
18.25 	commissioner that sufficient resources have 
18.26 	been committed to complete all eligible 
18.27 	projects, the remaining amount is available 
18.28 	for the corridors of commerce program under 
18.29 	Minnesota Statutes, section 161.088.

18.30	Subd. 3.Transportation Facilities Capital
 			$
	30,000,000
	
18.31 	This appropriation is to the commissioner of 
18.32 	transportation for the transportation facilities 
18.33 	capital program under Minnesota Statutes, 
18.34 	section 174.13.

19.1	Sec. 3. BOND SALE EXPENSES
 			$
	250,000
	
19.2 	This appropriation is to the commissioner of 
19.3 	management and budget for bond sale 
19.4 	expenses under Minnesota Statutes, sections 
19.5 	16A.641, subdivision 8, and 167.50, 
19.6 	subdivision 4.

19.7	Sec. 4. BOND SALE AUTHORIZATION.
 					
19.8 	To provide the money appropriated in this article from the bond proceeds account in the 
19.9 	trunk highway fund, the commissioner of management and budget shall sell and issue bonds 
19.10 	of the state in an amount up to $250,250,000 in the manner, upon the terms, and with the 
19.11 	effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
19.12 	Constitution, article XIV, section 11, at the times and in the amounts requested by the 
19.13 	commissioner of transportation. The proceeds of the bonds, except accrued interest and any 
19.14 	premium received from the sale of the bonds, must be deposited in the bond proceeds account 
19.15 	in the trunk highway fund.

19.16 	ARTICLE 3
19.17 	TRANSPORTATION POLICY AND FINANCE

19.18 	Section 1. Minnesota Statutes 2017 Supplement, section 3.972, subdivision 4, is amended 
19.19 	to read:
19.20 		Subd. 4.Certain transit financial activity reporting. (a) The legislative auditor must 
19.21 	perform a transit financial activity review of financial information for the Metropolitan 
19.22 	Council's Transportation Division and the joint powers board under section 297A.992. 
19.23 	Within 14 days of the end of each fiscal quarter,two times each year. The first report, due 
19.24 	April 1, must include the quarters ending on September 30 and December 31 of the previous 
19.25 	calendar year. The second report, due October 1, must include the quarters ending on March 
19.26 	31 and June 30 of the current year. The legislative auditor must submit the review to the 
19.27 	Legislative Audit Commission and the chairs and ranking minority members of the legislative 
19.28 	committees with jurisdiction over transportation policy and finance, finance, and ways and 
19.29 	means.
19.30 	(b) At a minimum, each transit financial activity review must include:
19.31 	(1) a summary of monthly financial statements, including balance sheets and operating 
19.32 	statements, that shows income, expenditures, and fund balance;
20.1 	(2) a list of any obligations and agreements entered into related to transit purposes, 
20.2 	whether for capital or operating, including but not limited to bonds, notes, grants, and future 
20.3 	funding commitments;
20.4 	(3) the amount of funds in clause (2) that has been committed;
20.5 	(4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues 
20.6 	and fund balance compared to expenditures, taking into account:
20.7 	(i) all expenditure commitments;
20.8 	(ii) cash flow;
20.9 	(iii) sufficiency of estimated funds; and
20.10 	(iv) financial solvency of anticipated transit projects; and
20.11 	(5) a notification concerning whether the requirements under paragraph (c) have been 
20.12 	met.
20.13 	(c) The Metropolitan Council and the joint powers board under section 297A.992 must 
20.14 	produce monthly financial statements as necessary for the review under paragraph (b), 
20.15 	clause (1), and provide timely information as requested by the legislative auditor.
20.16 	(d) This subdivision expires April 15, 2023.

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

20.18 	Sec. 2. Minnesota Statutes 2016, section 13.461, is amended by adding a subdivision to 
20.19 	read:
20.20 		Subd. 33.Metropolitan Council special transportation service. Data sharing between 
20.21 	the commissioner of human services and the Metropolitan Council to administer and 
20.22 	coordinate transportation services for individuals with disabilities and elderly individuals 
20.23 	is governed by section 473.386, subdivision 9.

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

20.26 	Sec. 3. Minnesota Statutes 2016, section 13.6905, subdivision 3, is amended to read:
20.27 		Subd. 3.Motor vehicle registration. Various data on motor vehicle registrations are 
20.28 	classified under sections 168.327, subdivision 3, and 168.346. Use of vehicle registration 
20.29 	data is governed by section 168.345.

21.1 	Sec. 4. Minnesota Statutes 2016, section 13.72, subdivision 10, is amended to read:
21.2 		Subd. 10.Transportation service data. (a) Personal, medical, financial, familial, or 
21.3 	locational information data pertaining to applicants for or users of services providing 
21.4 	transportation for the disabled individuals with disabilities or elderly individuals are private
21.5 	data on individuals.
21.6 	(b) Private transportation service data may be disclosed between the commissioner of 
21.7 	human services and the Metropolitan Council to administer and coordinate human services 
21.8 	programs and transportation services for individuals with disabilities and elderly individuals 
21.9 	under section 473.386.

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

21.12 	Sec. 5. Minnesota Statutes 2017 Supplement, section 160.02, subdivision 1a, is amended 
21.13 	to read:
21.14 		Subd. 1a.Bikeway. "Bikeway" means a bicycle lane, bicycle path, shared use path, 
21.15 	bicycle route, or similar bicycle facility, regardless of whether designed for the exclusive 
21.16 	use of bicycles or for shared use with other transportation modes has the meaning given in 
21.17 	section 169.011, subdivision 9.

21.18 	Sec. 6. Minnesota Statutes 2016, section 160.295, subdivision 5, is amended to read:
21.19 		Subd. 5.Rural agricultural business or tourist-oriented business. (a) A rural 
21.20 	agricultural or tourist-oriented business serviced by a specific service sign must be open a 
21.21 	minimum of eight hours per day, six days per week, and 12 months per year. However,
21.22 	(b) A seasonal business may qualify if it is serviced by a specific service sign must be
21.23 	open eight hours per day and six days per week during the normal seasonal period.
21.24 	(c) A farm winery serviced by a specific service sign must:
21.25 	(1) be licensed under section 340A.315;
21.26 	(2) be licensed by the Department of Health under section 157.16 or by the commissioner 
21.27 	of agriculture under section 28A.04;
21.28 	(3) provide continuous, staffed food service operation; and
21.29 	(4) be open at least four hours per day and two days per week.

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

22.1 	Sec. 7. Minnesota Statutes 2016, section 161.115, subdivision 111, is amended to read:
22.2 		Subd. 111.Route No. 180. Beginning at a point on Route No. 392 southwest or west 
22.3 	of Ashby 3 at or near Erdahl, thence extending in a general northerly or northeasterly 
22.4 	direction to a point on Route No. 153 as herein established at or near Ashby, thence extending 
22.5 	in a northeasterly direction to a point on Route No. 181 as herein established at or near 
22.6 	Ottertail.

22.7 	Sec. 8. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
22.8 	read:
22.9 		Subd. 87.Specialist Noah Pierce Bridge. The bridge on marked U.S. Highway 53 over 
22.10 	marked Trunk Highway 37 in the city of Eveleth is designated as "Specialist Noah Pierce 
22.11 	Bridge." Subject to section 161.139, the commissioner shall adopt a suitable design to mark 
22.12 	this bridge and erect appropriate signs.

22.13 	Sec. 9. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
22.14 	read:
22.15 		Subd. 88.Officer Bill Mathews Memorial Highway. That segment of marked U.S. 
22.16 	Highway 12 within the city limits of Wayzata is designated as "Officer Bill Mathews 
22.17 	Memorial Highway." Subject to section 161.139, the commissioner shall adopt a suitable 
22.18 	design to mark this highway and erect appropriate signs.

22.19 	Sec. 10. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
22.20 	read:
22.21 		Subd. 89.Warrant Officer Dennis A. Groth Memorial Bridge. The bridge on marked 
22.22 	U.S. Highway 52 over Dakota County State-Aid Highway 42, known as 145th Street within 
22.23 	the city of Rosemount, is designated as "Warrant Officer Dennis A. Groth Memorial Bridge." 
22.24 	Subject to section 161.139, the commissioner shall adopt a suitable design to mark the 
22.25 	bridge and erect appropriate signs.

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

22.27 	Sec. 11. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to 
22.28 	read:
22.29 		Subd. 90.State Trooper Ray Krueger Memorial Highway. That segment of marked 
22.30 	Trunk Highway 210 within Cass County is designated as "State Trooper Ray Krueger 
22.31 	Memorial Highway." Subject to section 161.139, the commissioner shall adopt a suitable 
23.1 	design to mark this highway and erect appropriate signs in the vicinity of the location where 
23.2 	Trooper Krueger died.

23.3 	Sec. 12. Minnesota Statutes 2016, section 161.32, subdivision 2, is amended to read:
23.4 		Subd. 2.Direct negotiation. In cases where the estimated cost of construction work or 
23.5 	maintenance work does not exceed $150,000 $250,000, the commissioner may enter into 
23.6 	a contract for the work by direct negotiation, by obtaining two or more quotations for the 
23.7 	work, and without advertising for bids or otherwise complying with the requirements of 
23.8 	competitive bidding if the total contractual obligation of the state for the directly negotiated 
23.9 	contract or contracts on any single project does not exceed $150,000 $250,000. All quotations 
23.10 	obtained shall be kept on file for a period of at least one year after receipt of the quotation.

23.11 	Sec. 13. [161.369] INDIAN EMPLOYMENT PREFERENCE.
23.12 	(a) As authorized by United States Code, title 23, section 140(d), the commissioner of 
23.13 	transportation may implement an Indian employment preference for members of federally 
23.14 	recognized tribes on projects carried out under United States Code, title 23, near an Indian 
23.15 	reservation.
23.16 	(b) For purposes of this section, a project is near a reservation if: (1) the project is within 
23.17 	the distance a person seeking employment could reasonably be expected to commute to and 
23.18 	from each work day; or (2) the commissioner, in consultation with federally recognized 
23.19 	Minnesota tribes, determines a project is near an Indian reservation.

23.20 	Sec. 14. Minnesota Statutes 2016, section 168.10, subdivision 1h, is amended to read:
23.21 		Subd. 1h.Collector military vehicle. (a) A motor vehicle, including a truck, shall be 
23.22 	listed and registered under this section if it meets the following conditions:
23.23 	(1) it is at least 20 years old;
23.24 	(2) its first owner following its manufacture was a branch of the armed forces of the 
23.25 	United States and it presently conforms to the vehicle specifications required during the 
23.26 	time of military ownership, or it has been restored and presently conforms to the 
23.27 	specifications required by a branch of the armed forces for the model year that the restored 
23.28 	vehicle could have been owned by that branch of the armed forces; and
23.29 	(3) it is owned by a nonprofit organization and operated solely as a collector's vehicle. 
23.30 	For purposes of this subdivision, "nonprofit organization" means a corporation, society, 
23.31 	association, foundation, or institution organized and operated exclusively for historical or 
24.1 	educational purposes, no part of the net earnings of which inures to the benefit of a private 
24.2 	individual.
24.3 	(b) The owner of the vehicle shall execute an affidavit stating the name and address of 
24.4 	the person from whom purchased and of the new owner; the make, year, and model number 
24.5 	of the motor vehicle; the manufacturer's identification number; and the collector military 
24.6 	vehicle identification number, if any, located on the exterior of the vehicle. The affidavit 
24.7 	must affirm that the vehicle is owned by a nonprofit organization and is operated solely as 
24.8 	a collector's item and not for general transportation purposes. If the commissioner is satisfied 
24.9 	that the affidavit is true and correct and the owner pays a $25 tax and the plate fee authorized 
24.10 	under section 168.12, the commissioner shall list the vehicle for taxation and registration 
24.11 	and shall issue number plates. The number plates shall bear the inscriptions "Collector" and 
24.12 	"Minnesota" and the registration number, but no date. The number plates are valid without 
24.13 	renewal as long as the vehicle is in existence in Minnesota. The commissioner may revoke 
24.14 	the plates for failure to comply with this subdivision.
24.15 	(c) Notwithstanding section 168.09, 168.12, or other law to the contrary, the owner of 
24.16 	a registered collector military vehicle is not required to display registration plates on the 
24.17 	exterior of the vehicle if the vehicle has an exterior number identification that conforms to 
24.18 	the identifying system for military vehicles in effect when the vehicle was last owned by 
24.19 	the branch of the armed forces of the United States or in effect in the year to which the 
24.20 	collector military vehicle has been restored. However, the state registration plates must be 
24.21 	carried in or on the collector military vehicle at all times.
24.22 	(d) The owner of a registered collector military vehicle that is not required to display 
24.23 	registration plates under paragraph (c) may tow a registered trailer behind it. The trailer is 
24.24 	not required to display registration plates if the trailer:
24.25 	(1) does not exceed a gross weight of 15,000 pounds;
24.26 	(2) otherwise conforms to registration, licensing, and safety laws and specifications;
24.27 	(3) conforms to military specifications for appearance and identification;
24.28 	(4) is intended to represent and does represent a military trailer; and
24.29 	(5) carries registration plates on or in the trailer or the collector military vehicle towing 
24.30 	the trailer.
24.31 	(e) This subdivision does not apply to a decommissioned military vehicle that (1) was 
24.32 	also manufactured and sold as a comparable civilian vehicle, and (2) has the same size 
24.33 	dimensions and vehicle weight as the comparable civilian vehicle. A decommissioned 
25.1 	military vehicle under this paragraph is eligible for a motor vehicle title under chapter 168A 
25.2 	and is subject to the same registration, insurance, and operating requirements as a motor 
25.3 	vehicle.

25.4 	Sec. 15. Minnesota Statutes 2016, section 168.101, subdivision 2a, is amended to read:
25.5 		Subd. 2a.Failure to send to registrar submit within ten days. Any person who fails 
25.6 	to mail in the application for registration or transfer with appropriate taxes and fees to the
25.7 	commissioner or a deputy registrar of motor vehicles, or otherwise fails to submit said the
25.8 	forms and remittance to the registrar, within ten days following date of sale shall be is guilty 
25.9 	of a misdemeanor.

25.10 	EFFECTIVE DATE. This section is effective July 1, 2019.

25.11 	Sec. 16. Minnesota Statutes 2016, section 168.127, subdivision 6, is amended to read:
25.12 		Subd. 6.Fee. Instead of the filing fee described in section 168.33, subdivision 7, For 
25.13 	each vehicle in the fleet, the applicant for fleet registration shall pay:
25.14 	(1) the filing fee in section 168.33, subdivision 7, for transactions processed by a deputy 
25.15 	registrar; or
25.16 	(2) an equivalent administrative fee to the for transactions processed by the commissioner 
25.17 	for each vehicle in the fleet, which is imposed in lieu of but in the same amount as the filing 
25.18 	fee in section 168.33, subdivision 7.

25.19 	EFFECTIVE DATE. This section is effective July 1, 2019.

25.20 	Sec. 17. Minnesota Statutes 2016, section 168.326, is amended to read:
25.21 	168.326 EXPEDITED DRIVER AND VEHICLE SERVICES; FEE.
25.22 	(a) When an applicant requests and pays an expedited service fee of $20, in addition to 
25.23 	other specified and statutorily mandated fees and taxes, the commissioner or, if appropriate, 
25.24 	a driver's license agent or deputy registrar, shall expedite the processing of an application 
25.25 	for a driver's license, driving instruction permit, Minnesota identification card, or vehicle 
25.26 	title transaction.
25.27 	(b) A driver's license agent or deputy registrar may retain $10 of the expedited service 
25.28 	fee for each expedited service request processed by the licensing agent or deputy registrar.
25.29 	(c) When expedited service is requested, materials must be mailed or delivered to the 
25.30 	requester within three days of receipt of the expedited service fee excluding Saturdays, 
26.1 	Sundays, or the holidays listed in section 645.44, subdivision 5. The requester shall comply 
26.2 	with all relevant requirements of the requested document.
26.3 	(d) The commissioner may decline to accept an expedited service request if it is apparent 
26.4 	at the time it is made that the request cannot be granted. The commissioner must not decline 
26.5 	an expedited service request and must not prevent a driver's license agent or deputy from 
26.6 	accepting an expedited service request solely on the basis of limitations of the driver and 
26.7 	vehicle services information technology system.
26.8 	(e) The expedited service fees collected under this section for an application for a driver's 
26.9 	license, driving instruction permit, or Minnesota identification card minus any portion 
26.10 	retained by a licensing agent or deputy registrar under paragraph (b) must be paid into the 
26.11 	driver services operating account in the special revenue fund specified under section 
26.12 	299A.705.
26.13 	(f) The expedited service fees collected under this section for a transaction for a vehicle 
26.14 	service minus any portion retained by a licensing agent or deputy registrar under paragraph 
26.15 	(b) must be paid into the vehicle services operating account in the special revenue fund 
26.16 	specified under section 299A.705.

26.17 	EFFECTIVE DATE. This section is effective November 1, 2019.

26.18 	Sec. 18. Minnesota Statutes 2016, section 168.33, is amended by adding a subdivision to 
26.19 	read:
26.20 		Subd. 8b.Transactions by mail. A deputy registrar may receive motor vehicle 
26.21 	applications and submissions under this chapter and chapter 168A by mail, process the 
26.22 	transactions, and retain the appropriate filing fee under subdivision 7.

26.23 	EFFECTIVE DATE. This section is effective July 1, 2019.

26.24 	Sec. 19. [168.335] DEPUTY REGISTRAR REIMBURSEMENTS.
26.25 		Subdivision 1.Reimbursement grants. (a) By August 1 of a fiscal year in which funds 
26.26 	are specifically made available for purposes of this section, the commissioner of management 
26.27 	and budget must provide reimbursement grants to deputy registrars.
26.28 	(b) The commissioner must use existing resources to administer the reimbursements.
26.29 		Subd. 2.Eligibility. A deputy registrar office operated by the state is not eligible to 
26.30 	receive funds under this section.
27.1 		Subd. 3.Aid distribution. (a) The reimbursement grant to each deputy registrar, as 
27.2 	identified by the Driver and Vehicle Services-designated office location number, is calculated 
27.3 	as follows:
27.4 	(1) 50 percent of available funds allocated proportionally based on (i) the number of 
27.5 	transactions where a filing fee under section 168.33, subdivision 7, is retained by each 
27.6 	deputy registrar during the preceding fiscal year, compared to (ii) the total number of 
27.7 	transactions where a filing fee is retained by all deputy registrars during that time period; 
27.8 	and
27.9 	(2) 50 percent of available funds allocated proportionally based on (i) the number of 
27.10 	transactions where a filing fee is retained by each deputy registrar from July 1, 2014, through 
27.11 	June 30, 2017, compared to (ii) the total number of transactions where a filing fee is retained 
27.12 	by all deputy registrars during that time period.
27.13 	(b) For a deputy registrar appointed after July 1, 2014, the commissioner of management 
27.14 	and budget must identify whether a corresponding discontinued deputy registrar appointment 
27.15 	exists. If a corresponding discontinued deputy registrar is identified, the commissioner must 
27.16 	include the transactions of the discontinued deputy registrar in the calculations under 
27.17 	paragraph (a) for the deputy registrar appointed after July 1, 2014.
27.18 	(c) For a deputy registrar appointed after July 1, 2014, for which paragraph (b) does not 
27.19 	apply, the commissioner of management and budget must calculate that deputy registrar's 
27.20 	proportional share under paragraph (a), clause (2), based on the average number of 
27.21 	transactions where a filing fee is retained among the deputy registrars, as calculated excluding 
27.22 	any deputy registrars for which this paragraph applies.
27.23 	(d) In the calculations under paragraph (a), the commissioner of management and budget 
27.24 	must exclude transactions for (1) a deputy registrar office operated by the state, and (2) a 
27.25 	discontinued deputy registrar for which paragraph (b) does not apply.

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

27.27 	Sec. 20. Minnesota Statutes 2016, section 168.345, subdivision 2, is amended to read:
27.28 		Subd. 2.Lessees; information. The commissioner may not furnish information about 
27.29 	registered owners of passenger automobiles who are lessees under a lease for a term of 180 
27.30 	days or more to any person except the personnel of law enforcement agencies and, trade 
27.31 	associations performing a member service under section 604.15, subdivision 4a, federal, 
27.32 	state, and local governmental units, and, at the commissioner's discretion, to persons who 
27.33 	use the information to notify lessees of automobile recalls. The commissioner may release 
28.1 	information about lessees in the form of summary data, as defined in section 13.02, to 
28.2 	persons who use the information in conducting statistical analysis and market research.

28.3 	Sec. 21. Minnesota Statutes 2016, section 168A.02, subdivision 1, is amended to read:
28.4 		Subdivision 1.Application for certificate of title. (a) Except as provided in section 
28.5 	168A.03, every owner of a vehicle which is in this state and for which no currently effective 
28.6 	certificate of title has been issued in this state shall make application to the department for 
28.7 	a certificate of title of the vehicle, pursuant to rules adopted by the department under section 
28.8 	168A.24, subdivision 2, clause 3 (3).
28.9 	(b) A decommissioned military vehicle that (1) was also manufactured and sold as a 
28.10 	comparable civilian vehicle, and (2) has the same size dimensions and vehicle weight as 
28.11 	the comparable civilian vehicle, is eligible for a certificate of title under this chapter.

28.12 	Sec. 22. Minnesota Statutes 2016, section 168A.151, subdivision 1, is amended to read:
28.13 		Subdivision 1.Salvage titles. (a) When an insurer, licensed to conduct business in 
28.14 	Minnesota, acquires ownership of a late-model or high-value vehicle through payment of 
28.15 	damages, the insurer shall immediately apply for a salvage certificate of title or shall stamp 
28.16 	the existing certificate of title with the legend "SALVAGE CERTIFICATE OF TITLE" in 
28.17 	a manner prescribed by the department. Within ten days of obtaining the title of a vehicle 
28.18 	through payment of damages, an insurer must notify the department in a manner prescribed 
28.19 	by the department.
28.20 	(b) A person shall immediately apply for a salvage certificate of title if the person acquires 
28.21 	a damaged late-model or high-value vehicle with an out-of-state title and the vehicle:
28.22 	(1) is a vehicle that was acquired by an insurer through payment of damages;
28.23 	(2) is a vehicle for which the cost of repairs exceeds the value of the damaged vehicle; 
28.24 	or
28.25 	(3) has an out-of-state salvage certificate of title as proof of ownership.
28.26 	(c) A self-insured owner of a late-model or high-value vehicle that sustains damage by 
28.27 	collision or other occurrence which exceeds 80 percent of its actual cash value shall 
28.28 	immediately apply for a salvage certificate of title.

28.29 	Sec. 23. Minnesota Statutes 2016, section 168A.29, subdivision 1, is amended to read:
28.30 		Subdivision 1.Amounts. (a) The department must be paid the following fees:
29.1 	(1) for filing an application for and the issuance of an original certificate of title, the 
29.2 	sum of:
29.3 	(i) until December 31, 2016, $6.25 of which $3.25 must be paid into the vehicle services 
29.4 	operating account of the special revenue fund under section 299A.705, and from July 1, 
29.5 	2012, to June 30, 2016, a surcharge of $1 must be added to the fee and credited to the driver 
29.6 	and vehicle services technology account; and
29.7 	(ii) on and after January 1, 2017, $8.25, of which $4.15 must be paid into the vehicle 
29.8 	services operating account under section 299A.705;
29.9 	(2) for each security interest when first noted upon a certificate of title, including the 
29.10 	concurrent notation of any assignment thereof and its subsequent release or satisfaction, the 
29.11 	sum of $2, except that no fee is due for a security interest filed by a public authority under 
29.12 	section 168A.05, subdivision 8;
29.13 	(3) until December 31, 2016, for the transfer of the interest of an owner and the issuance 
29.14 	of a new certificate of title, the sum of $5.50 of which $2.50 must be paid into the vehicle 
29.15 	services operating account of the special revenue fund under section 299A.705, and from 
29.16 	July 1, 2012, to June 30, 2016, a surcharge of $1 must be added to the fee and credited to 
29.17 	the driver and vehicle services technology account;
29.18 	(4)(3) for each assignment of a security interest when first noted on a certificate of title, 
29.19 	unless noted concurrently with the security interest, the sum of $1; and
29.20 	(5) (4) for issuing a duplicate certificate of title, the sum of $7.25, of which $3.25 must 
29.21 	be paid into the vehicle services operating account of the special revenue fund under section 
29.22 	299A.705; from July 1, 2012, to June 30, 2016, a surcharge of $1 must be added to the fee 
29.23 	and credited to the driver and vehicle services technology account.
29.24 	(b) In addition to the fee required under paragraph (a), clause (1), the department must 
29.25 	be paid $3.50. The additional $3.50 fee collected under this paragraph must be deposited 
29.26 	in the special revenue fund and credited to the public safety motor vehicle account established 
29.27 	in section 299A.70.

29.28 	EFFECTIVE DATE. This section is effective July 1, 2018.

29.29 	Sec. 24. Minnesota Statutes 2016, section 169.011, subdivision 5, is amended to read:
29.30 		Subd. 5.Bicycle lane. "Bicycle lane" means a portion of a roadway or shoulder designed 
29.31 	for exclusive or preferential use by persons using bicycles. Bicycle lanes are to be 
30.1 	distinguished from the portion of the roadway or shoulder used for motor vehicle traffic by 
30.2 	physical barrier, striping, marking, or other similar device.

30.3 	Sec. 25. Minnesota Statutes 2016, section 169.011, subdivision 9, is amended to read:
30.4 		Subd. 9.Bikeway. "Bikeway" means a bicycle lane, bicycle path, or bicycle route, shared 
30.5 	use path, or similar bicycle facility, regardless of whether it is designed for the exclusive 
30.6 	use of bicycles or is to be for shared use with other transportation modes.

30.7 	Sec. 26. Minnesota Statutes 2016, section 169.011, subdivision 60, is amended to read:
30.8 		Subd. 60.Railroad train. "Railroad train" means a steam engine, electric or other motor, 
30.9 	with or without cars coupled thereto, operated upon rails, except streetcars. Railroad train 
30.10 	includes on-track equipment or other rolling stock operated upon rails, whether the on-track 
30.11 	equipment or rolling stock is self-propelled or coupled to another device.

30.12 	Sec. 27. Minnesota Statutes 2016, section 169.18, subdivision 3, is amended to read:
30.13 		Subd. 3.Passing. The following rules shall govern the overtaking and passing of vehicles 
30.14 	proceeding in the same direction, subject to the limitations, exceptions, and special rules 
30.15 	hereinafter stated:
30.16 	(1) (a) The driver of a vehicle overtaking another vehicle proceeding in the same direction 
30.17 	shall must pass to the left thereof of the other vehicle at a safe distance and shall not again 
30.18 	drive is prohibited from returning to the right side of the roadway until safely clear of the 
30.19 	overtaken vehicle;.
30.20 	(2) (b) Except when overtaking and passing on the right is permitted, the driver of an 
30.21 	overtaken vehicle shall must give way to the right in favor of the overtaking vehicle on 
30.22 	audible warning, and shall must not increase the speed of the overtaken vehicle until 
30.23 	completely passed by the overtaking vehicle; and.
30.24 	(3) (c) The operator of a motor vehicle overtaking a bicycle or individual proceeding in 
30.25 	the same direction on the roadway shall leaveor shoulder must:
30.26 	(1) either (i) maintain a safe clearance distance while passing, but in no case less than 
30.27 	three feet clearance, when passing the bicycle or individual or one-half the width of the 
30.28 	motor vehicle, whichever is greater; or (ii) completely enter another lane of the roadway 
30.29 	while passing; and shall
30.30 	(2) maintain clearance until the motor vehicle has safely past passed the overtaken bicycle 
30.31 	or individual.

31.1 	Sec. 28. Minnesota Statutes 2016, section 169.222, subdivision 1, is amended to read:
31.2 		Subdivision 1.Traffic laws apply. (a) Every person operating a bicycle shall have has
31.3 	all of the rights and duties applicable to the driver of any other vehicle by this chapter, 
31.4 	except in respect to those provisions in this chapter relating expressly to bicycles and in 
31.5 	respect to those provisions of this chapter which by their nature cannot reasonably be applied 
31.6 	to bicycles. This subdivision applies to a bicycle operating on the shoulder of a roadway.
31.7 	(b) A person lawfully operating a bicycle (1) on a sidewalk, or (2) across a roadway or 
31.8 	shoulder on a crosswalk, has all the rights and duties applicable to a pedestrian under the 
31.9 	same circumstances.

31.10 	Sec. 29. Minnesota Statutes 2016, section 169.222, subdivision 4, is amended to read:
31.11 		Subd. 4.Riding rules. (a) Every person operating a bicycle upon a roadway shall on a 
31.12 	road must ride as close as practicable to the right-hand curb or edge of the roadway except 
31.13 	under any of the following situations road as the bicycle operator determines is safe. A 
31.14 	person operating a bicycle is not required to ride as close to the right-hand curb when:
31.15 	(1) when overtaking and passing another vehicle proceeding in the same direction;
31.16 	(2) when preparing for a left turn at an intersection or into a private road or driveway;
31.17 	(3) when reasonably necessary to avoid conditions that make it unsafe to continue along 
31.18 	the right-hand curb or edge, including fixed or moving objects, vehicles, pedestrians, animals, 
31.19 	surface hazards, or narrow width lanes, that make it unsafe to continue along the right-hand 
31.20 	curb or edge; or
31.21 	(4) when operating on the shoulder of a roadway or in a bicycle lane; or
31.22 	(5) operating in a right-hand turn lane before entering an intersection.
31.23 	(b) If a bicycle is traveling on a shoulder of a roadway, the bicycle shall operator must
31.24 	travel in the same direction as adjacent vehicular traffic.
31.25 	(c) Persons riding bicycles upon a roadway or shoulder shall not ride more than two 
31.26 	abreast and shall not impede the normal and reasonable movement of traffic and, on a laned 
31.27 	roadway, shall ride within a single lane.
31.28 	(d) A person operating a bicycle upon a sidewalk, or across a roadway or shoulder on a 
31.29 	crosswalk, shall yield the right-of-way to any pedestrian and shall give an audible signal 
31.30 	when necessary before overtaking and passing any pedestrian. No person shall ride a bicycle 
31.31 	upon a sidewalk within a business district unless permitted by local authorities. Local 
32.1 	authorities may prohibit the operation of bicycles on any sidewalk or crosswalk under their 
32.2 	jurisdiction.
32.3 	(e) An individual operating a bicycle or other vehicle on a bikeway shall leave a safe 
32.4 	distance when overtaking a bicycle or individual proceeding in the same direction on the 
32.5 	bikeway, and shall maintain clearance until safely past the overtaken bicycle or individual.
32.6 	(f) A person lawfully operating a bicycle on a sidewalk, or across a roadway or shoulder 
32.7 	on a crosswalk, shall have all the rights and duties applicable to a pedestrian under the same 
32.8 	circumstances.
32.9 	(g)(f) A person may operate an electric-assisted bicycle on the shoulder of a roadway, 
32.10 	on a bikeway, or on a bicycle trail if not otherwise prohibited under section 85.015, 
32.11 	subdivision 1d; 85.018, subdivision 2, paragraph (d); or 160.263, subdivision 2, paragraph 
32.12 	(b), as applicable.
32.13 	(g) Notwithstanding section 169.06, subdivision 4, a bicycle operator may cross an 
32.14 	intersection proceeding from a dedicated right-hand turn lane without turning right.

32.15 	Sec. 30. Minnesota Statutes 2016, section 169.26, subdivision 1, is amended to read:
32.16 		Subdivision 1.Requirements. (a) Except as provided in section 169.28, subdivision 1, 
32.17 	when any person driving a vehicle approaches a railroad grade crossing under any of the 
32.18 	circumstances stated in this paragraph, the driver shall stop the vehicle not less than ten feet 
32.19 	from the nearest railroad track and shall not proceed until safe to do so and until the roadway 
32.20 	is clear of traffic so that the vehicle can proceed without stopping until the rear of the vehicle 
32.21 	is at least ten feet past the farthest railroad track. These requirements apply when:
32.22 	(1) a clearly visible electric or mechanical signal device warns of the immediate approach 
32.23 	of a railroad train; or
32.24 	(2) an approaching railroad train is plainly visible and is in hazardous proximity.
32.25 	(b) The fact that a moving railroad train approaching a railroad grade crossing is visible 
32.26 	from the crossing is prima facie evidence that it is not safe to proceed.
32.27 	(c) The driver of a vehicle shall stop and remain stopped and not traverse the grade 
32.28 	crossing when a human flagger signals the approach or passage of a railroad train or when 
32.29 	a crossing gate is lowered warning of the immediate approach or passage of a railroad train. 
32.30 	No person may drive a vehicle past a flagger at a railroad crossing until the flagger signals 
32.31 	that the way is clear to proceed or drive a vehicle past a lowered crossing gate.

33.1 	Sec. 31. Minnesota Statutes 2016, section 169.28, is amended to read:
33.2 	169.28 CERTAIN VEHICLES TO STOP AT RAILROAD CROSSING.
33.3 		Subdivision 1.Requirements. (a) The driver of any motor vehicle carrying passengers 
33.4 	for hire, or of any school bus whether carrying passengers or not, or of any Head Start bus 
33.5 	whether carrying passengers or not, or of any vehicle that is required to stop at railroad 
33.6 	grade crossings under Code of Federal Regulations, title 49, section 392.10, before crossing 
33.7 	at grade any track or tracks of a railroad, shall stop the vehicle not less than 15 feet nor more 
33.8 	than 50 feet from the nearest rail of the railroad and while so stopped shall listen and look 
33.9 	in both directions along the track for any approaching railroad train, and for signals indicating 
33.10 	the approach of a railroad train, except as hereinafter otherwise provided, and in this section. 
33.11 	The driver shall not proceed until safe to do so and until the roadway is clear of traffic so 
33.12 	that the vehicle can proceed without stopping until the rear of the vehicle is at least ten feet 
33.13 	past the farthest railroad track. The driver must not shift gears while crossing the railroad 
33.14 	tracks.
33.15 	(b) A school bus or Head Start bus shall not be flagged across railroad grade crossings 
33.16 	except at those railroad grade crossings that the local school administrative officer may 
33.17 	designate.
33.18 	(c) A type III vehicle, as defined in section 169.011, is exempt from the requirement of 
33.19 	school buses to stop at railroad grade crossings.
33.20 	(d) The requirements of this subdivision do not apply to the crossing of light rail vehicle 
33.21 	track or tracks that are located in a public street when:
33.22 	(1) the crossing occurs within the intersection of two or more public streets;
33.23 	(2) the intersection is controlled by a traffic-control signal; and
33.24 	(3) the intersection is marked with signs indicating to drivers that the requirements of 
33.25 	this subdivision do not apply. Notwithstanding any other provision of law, the owner or 
33.26 	operator of the track or tracks is authorized to place, maintain, and display the signs upon 
33.27 	and in the view of the public street or streets.
33.28 		Subd. 2.Exempt crossing. (a) The commissioner may designate a crossing as an exempt 
33.29 	crossing:
33.30 	(1) if the crossing is on a rail line on which service has been abandoned;
33.31 	(2) if the crossing is on a rail line that carries fewer than five trains each year, traveling 
33.32 	at speeds of ten miles per hour or less; or
34.1 	(3) as agreed to by the operating railroad and the Department of Transportation, following 
34.2 	a diagnostic review of the crossing.
34.3 	(b) The commissioner shall direct the railroad to erect at the crossing signs bearing the 
34.4 	word "Exempt" that conform to section 169.06. The installation or presence of an exempt 
34.5 	sign does not relieve a driver of the duty to use due care.
34.6 	(c) A railroad train must not proceed across an exempt crossing unless a police officer 
34.7 	is present to direct traffic or a railroad employee is on the ground to warn traffic until the
34.8 	railroad train enters the crossing.
34.9 	(c) (d) A vehicle that must stop at grade crossings under subdivision 1 is not required 
34.10 	to stop at a marked exempt crossing unless directed otherwise by a police officer or a railroad 
34.11 	employee.

34.12 	Sec. 32. Minnesota Statutes 2016, section 169.29, is amended to read:
34.13 	169.29 CROSSING RAILROAD TRACKS WITH CERTAIN EQUIPMENT.
34.14 	(a) No person shall operate or move any caterpillar tractor, steam shovel, derrick, roller, 
34.15 	or any equipment or structure having a normal operating speed of six or less miles per hour 
34.16 	or a vertical body or load clearance of less than nine inches above the level surface of a 
34.17 	roadway upon or across any tracks at a railroad grade crossing without first complying with 
34.18 	this section.
34.19 	(b) Before making any crossing, the person operating or moving any vehicle or equipment 
34.20 	set forth in this section shall first stop the same not less than ten, nor more than 50, feet 
34.21 	from the nearest rail of the railway, and while so stopped shall listen and look in both 
34.22 	directions along the track for any approaching railroad train and for signals indicating the 
34.23 	approach of a railroad train, and shall not proceed until the crossing can be made safely.
34.24 	(c) No crossing shall be made when warning is given by automatic signal or crossing 
34.25 	gates or a flagger or otherwise of the immediate approach of a railroad train or car.
34.26 	(d) No stop need be made at a crossing on a rail line on which service has been abandoned 
34.27 	and where a sign erected in conformance with section 169.06 and bearing the word "Exempt" 
34.28 	has been installed, unless directed otherwise by a flagger. The installation or presence of 
34.29 	an exempt sign shall not relieve any driver of the duty to use due care.

35.1 	Sec. 33. Minnesota Statutes 2016, section 169.345, subdivision 2, is amended to read:
35.2 		Subd. 2.Definitions. (a) For the purpose of section 168.021 and this section, the following 
35.3 	terms have the meanings given them in this subdivision.
35.4 	(b) "Health professional" means a licensed physician, licensed physician assistant, 
35.5 	advanced practice registered nurse, licensed physical therapist, or licensed chiropractor.
35.6 	(c) "Long-term certificate" means a certificate issued for a period greater than 12 months 
35.7 	but not greater than 71 months.
35.8 	(d) "Organization certificate" means a certificate issued to an entity other than a natural 
35.9 	person for a period of three years.
35.10 	(e) "Permit" refers to a permit that is issued for a period of 30 days, in lieu of the 
35.11 	certificate referred to in subdivision 3, while the application is being processed.
35.12 	(f) "Physically disabled person" means a person who:
35.13 	(1) because of disability cannot walk without significant risk of falling;
35.14 	(2) because of disability cannot walk 200 feet without stopping to rest;
35.15 	(3) because of disability cannot walk without the aid of another person, a walker, a cane, 
35.16 	crutches, braces, a prosthetic device, or a wheelchair;
35.17 	(4) is restricted by a respiratory disease to such an extent that the person's forced 
35.18 	(respiratory) expiratory volume for one second, when measured by spirometry, is less than 
35.19 	one liter;
35.20 	(5) has an arterial oxygen tension (PaO2) of less than 60 mm/Hg on room air at rest;
35.21 	(6) uses portable oxygen;
35.22 	(7) has a cardiac condition to the extent that the person's functional limitations are 
35.23 	classified in severity as class III or class IV according to standards set by the American 
35.24 	Heart Association;
35.25 	(8) has lost an arm or a leg and does not have or cannot use an artificial limb; or
35.26 	(9) has a disability that would be aggravated by walking 200 feet under normal 
35.27 	environmental conditions to an extent that would be life threatening.
35.28 	(g) "Short-term certificate" means a certificate issued for a period greater than six months 
35.29 	but not greater than 12 months.
35.30 	(h) "Six-year certificate" means a certificate issued for a period of six years.
36.1 	(i) "Temporary certificate" means a certificate issued for a period not greater than six 
36.2 	months.

36.3 	Sec. 34. Minnesota Statutes 2016, section 169.4503, subdivision 5, is amended to read:
36.4 		Subd. 5.Colors. Fenderettes may be black. The beltline may be painted yellow over 
36.5 	black or black over yellow. The rub rails shall must be black or yellow. The area around 
36.6 	the lenses of alternately flashing signal lamps extending outward from the edge of the lamp 
36.7 	three inches, plus or minus one-quarter inch, to the sides and top and at least one inch to 
36.8 	the bottom, shall must be black. Visors or hoods, black in color, with a minimum of four 
36.9 	inches may be provided.

36.10 	Sec. 35. Minnesota Statutes 2016, section 169.81, is amended by adding a subdivision to 
36.11 	read:
36.12 		Subd. 11.Automobile transporter. (a) For purposes of this subdivision, the following 
36.13 	terms have the meanings given them:
36.14 	(1) "automobile transporter" means any vehicle combination designed and used to 
36.15 	transport assembled highway vehicles, including truck camper units;
36.16 	(2) "stinger-steered combination automobile transporter" means a truck tractor semitrailer 
36.17 	having the fifth wheel located on a drop frame located behind and below the rear-most axle 
36.18 	of the power unit; and
36.19 	(3) "backhaul" means the return trip of a vehicle transporting cargo or general freight, 
36.20 	especially when carrying goods back over all or part of the same route.
36.21 	(b) Stinger-steered combination automobile transporters having a length of 80 feet or 
36.22 	less may be operated on interstate highways and other highways designated in this section, 
36.23 	and in addition may carry a load that extends the length by four feet or less in the front of 
36.24 	the vehicle and six feet or less in the rear of the vehicle.
36.25 	(c) An automobile transporter may transport cargo or general freight on a backhaul, 
36.26 	provided it complies with weight limitations for a truck tractor and semitrailer combination 
36.27 	under section 169.824.

36.28 	Sec. 36. Minnesota Statutes 2016, section 169.8261, subdivision 2, is amended to read:
36.29 		Subd. 2.Conditions. (a) A vehicle or combination of vehicles described in subdivision 
36.30 	1 must:
37.1 	(1) comply with seasonal load restrictions in effect between the dates set by the 
37.2 	commissioner under section 169.87, subdivision 2;
37.3 	(2) comply with bridge load limits posted under section 169.84;
37.4 	(3) be equipped and operated with six or more axles and brakes on all wheels;
37.5 	(4) not exceed 90,000 pounds gross vehicle weight, or 99,000 pounds gross vehicle 
37.6 	weight during the time when seasonal increases are authorized under section 169.826;
37.7 	(5) not be operated on interstate highways;
37.8 	(6) obtain an annual permit from the commissioner of transportation;
37.9 	(7) obey all road postings; and
37.10 	(8) not exceed 20,000 pounds gross weight on any single axle.
37.11 	(b) A vehicle operated under this section may exceed the legal axle weight limits listed 
37.12 	in section 169.824 by not more than 12.5 percent; except that, the weight limits may be 
37.13 	exceeded by not more than 23.75 percent during the time when seasonal increases are 
37.14 	authorized under section 169.826, subdivision 1.
37.15 	(c) Notwithstanding paragraph (a), clause (5), a vehicle or combination of vehicles 
37.16 	hauling raw or unfinished forest products may also operate on the segment of marked 
37.17 	Interstate Highway 35 provided under United States Code, title 23, section 127(q)(2)(D).

37.18 	Sec. 37. Minnesota Statutes 2017 Supplement, section 169.829, subdivision 4, is amended 
37.19 	to read:
37.20 		Subd. 4.Certain emergency vehicles. (a) The provisions of sections 169.80 to 169.88 
37.21 	governing size, weight, and load do not apply to a fire apparatus, a law enforcement special 
37.22 	response vehicle, or a licensed land emergency ambulance service vehicle.
37.23 	(b) Emergency vehicles designed to transport personnel and equipment to support the 
37.24 	suppression of fires and to mitigate other hazardous situations are subject to the following 
37.25 	weight limitations when operated on an interstate highway: (1) 24,000 pounds on a single 
37.26 	steering axle; (2) 33,500 pounds on a single drive axle; (3) 52,000 pounds on a tandem rear 
37.27 	drive steer axle; and (4) 62,000 pounds on a tandem axle. The gross weight of an emergency 
37.28 	vehicle operating on an interstate highway must not exceed 86,000 pounds.

38.1 	Sec. 38. Minnesota Statutes 2016, section 169.829, is amended by adding a subdivision 
38.2 	to read:
38.3 		Subd. 5.Sewage septic tank trucks. (a) Sections 169.823 and 169.826 to 169.828 do 
38.4 	not apply to a sewage septic tank truck used exclusively to transport sewage from septic or 
38.5 	holding tanks.
38.6 	(b) The weight limitations under section 169.824 are increased by ten percent for a 
38.7 	single-unit vehicle transporting sewage from the point of service to (1) another point of 
38.8 	service, or (2) the point of unloading.
38.9 	(c) Notwithstanding sections 169.824, subdivision 1, paragraph (d); 169.826, subdivision 
38.10 	3; or any other law to the contrary, a permit is not required to operate a vehicle under this 
38.11 	subdivision.
38.12 	(d) The seasonal weight increases under section 169.826, subdivision 1, do not apply to 
38.13 	a vehicle operated under this subdivision.
38.14 	(e) A vehicle operated under this subdivision is subject to bridge load limits posted under 
38.15 	section 169.84.

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

38.17 	Sec. 39. Minnesota Statutes 2016, section 169.87, subdivision 6, is amended to read:
38.18 		Subd. 6.Recycling and garbage vehicles. (a) Except as provided in paragraph (b) While 
38.19 	a vehicle is engaged in the type of collection the vehicle was designed to perform, weight 
38.20 	restrictions imposed under subdivisions 1 and 2 do not apply to:
38.21 	(1) a vehicle that does not exceed 20,000 pounds per single axle and is designed and 
38.22 	used exclusively for recycling, while engaged in recycling operating in a political subdivision 
38.23 	that mandates curbside recycling pickup.;
38.24 	(b) Weight restrictions imposed under subdivisions 1 and 2 do not apply to: (1) (2) a 
38.25 	vehicle that does not exceed 14,000 pounds per single axle and is used exclusively for 
38.26 	recycling as described in paragraph (a);
38.27 	(2) (3) a vehicle that does not exceed 14,000 pounds per single axle and is designed and 
38.28 	used exclusively for collecting mixed municipal solid waste, as defined in section 115A.03, 
38.29 	subdivision 21, while engaged in such collection; or
38.30 	(3) (4) a portable toilet service vehicle that does not exceed 14,000 pounds per single 
38.31 	axle or 26,000 pounds gross vehicle weight, and is designed and used exclusively for 
38.32 	collecting liquid waste from portable toilets, while engaged in such collection; or
39.1 	(5) a sewage septic tank truck that is designed and used exclusively to haul sewage from 
39.2 	septic or holding tanks.
39.3 	(c) (b) Notwithstanding section 169.80, subdivision 1, a violation of the owner or operator 
39.4 	of a vehicle that violates the weight restrictions imposed under subdivisions 1 and 2 by a 
39.5 	vehicle designed and used exclusively for recycling while engaged in recycling in a political 
39.6 	subdivision that mandates curbside recycling pickup while engaged in such collection, by 
39.7 	a vehicle that is designed and used exclusively for collecting mixed municipal solid waste 
39.8 	as defined in section 115A.03, subdivision 21, while engaged in such collection, or by a 
39.9 	portable toilet service vehicle that is designed and used exclusively for collecting liquid 
39.10 	waste from portable toilets, while engaged in such collection, is not subject to criminal 
39.11 	penalties but is subject to a civil penalty for excess weight under section 169.871 if the 
39.12 	vehicle (1) meets the requirements under paragraph (a), and (2) is engaged in the type of 
39.13 	collection the vehicle was designed to perform.

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

39.15 	Sec. 40. Minnesota Statutes 2016, section 169.974, subdivision 2, is amended to read:
39.16 		Subd. 2.License endorsement and permit requirements. (a) No person shall operate 
39.17 	a motorcycle on any street or highway without having a valid driver's license with a 
39.18 	two-wheeled vehicle endorsement as provided by law. A person may operate an autocycle 
39.19 	without a two-wheeled vehicle endorsement, provided the person has a valid driver's license 
39.20 	issued under section 171.02.
39.21 	(b) The commissioner of public safety shall issue a two-wheeled vehicle endorsement 
39.22 	only if the applicant (1) has in possession a valid two-wheeled vehicle instruction permit 
39.23 	as provided in paragraph (c), (2) has passed a written examination and road test administered 
39.24 	by the Department of Public Safety for the endorsement, and (3) in the case of applicants 
39.25 	under 18 years of age, presents a certificate or other evidence of having successfully 
39.26 	completed an approved two-wheeled vehicle driver's safety course in this or another state, 
39.27 	in accordance with rules adopted by the commissioner of public safety for courses offered 
39.28 	by a public, private, or commercial school or institute. The commissioner of public safety 
39.29 	may waive the road test for any applicant on determining that the applicant possesses a valid 
39.30 	license to operate a two-wheeled vehicle issued by a jurisdiction that requires a comparable 
39.31 	road test for license issuance.
39.32 	(c) The commissioner of public safety shall issue a two-wheeled vehicle instruction 
39.33 	permit to any person over 16 years of age who (1) is in possession of a valid driver's license, 
39.34 	(2) is enrolled in an approved two-wheeled vehicle driver's safety course, and (3) has passed 
40.1 	a written examination for the permit and paid a fee prescribed by the commissioner of public 
40.2 	safety. A two-wheeled vehicle instruction permit is effective for one year and may be 
40.3 	renewed under rules prescribed by the commissioner of public safety.
40.4 	(d) No person who is operating by virtue of a two-wheeled vehicle instruction permit 
40.5 	shall:
40.6 	(1) carry any passengers on the streets and highways of this state on the motorcycle 
40.7 	while the person is operating the motorcycle;
40.8 	(2) drive the motorcycle at night; or
40.9 	(3) drive the motorcycle on any highway marked as an interstate highway pursuant to 
40.10 	title 23 of the United States Code; or
40.11 	(4) (3) drive the motorcycle without wearing protective headgear that complies with 
40.12 	standards established by the commissioner of public safety.
40.13 	(e) Notwithstanding paragraphs (a) to (d), the commissioner of public safety may issue 
40.14 	a special motorcycle permit, restricted or qualified as the commissioner of public safety 
40.15 	deems proper, to any person demonstrating a need for the permit and unable to qualify for 
40.16 	a driver's license.

40.17 	Sec. 41. Minnesota Statutes 2017 Supplement, section 171.06, subdivision 2, is amended 
40.18 	to read:
40.19 		Subd. 2.Fees. (a) The fees for a license and Minnesota identification card are as follows:

40.20
40.21
40.22	REAL ID Compliant or 
Noncompliant Classified 
Driver's License
		D-$17.25
	C-$21.25
	B-$28.25
	A-$36.25
	
40.23
40.24
40.25	REAL ID Compliant or 
Noncompliant Classified 
Under-21 D.L.
		D-$17.25
	C-$21.25
	B-$28.25
	A-$16.25
	
40.26	Enhanced Driver's License
		D-$32.25
	C-$36.25
	B-$43.25
	A-$51.25
	
40.27
40.28
40.29	REAL ID Compliant or 
Noncompliant Instruction 
Permit
					$5.25
	
40.30
40.31	Enhanced Instruction 
Permit
					$20.25
	
40.32
40.33	Commercial Learner's 
Permit
					$2.50
	
40.34
40.35
40.36	REAL ID Compliant or 
Noncompliant Provisional 
License
					$8.25
	
41.1
41.2	Enhanced Provisional 
License
					$23.25
	
41.3
41.4
41.5
41.6
41.7
41.8	Duplicate REAL ID 
Compliant or Noncompliant 
License or duplicate REAL 
ID Compliant or 
Noncompliant identification 
card
					$6.75
	
41.941.10
41.11
	Enhanced Duplicate 
License or enhanced 
duplicate identification card
					$21.75
	
41.12
41.13
41.14
41.15
41.16
41.17
41.18
41.19
41.20
41.21	REAL ID Compliant or 
Noncompliant Minnesota 
identification card or REAL 
ID Compliant or 
Noncompliant Under-21 
Minnesota identification 
card, other than duplicate, 
except as otherwise 
provided in section 171.07, 
subdivisions 3 and 3a
					$11.25
	
41.22
41.23	Enhanced Minnesota 
identification card
					$26.25
	
41.24 	In addition to each fee required in this paragraph, the commissioner shall collect a surcharge 
41.25 	of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30, 2016. 
41.26 	Surcharges collected under this paragraph must be credited to the driver and vehicle services 
41.27 	technology account in the special revenue fund under section 299A.705.
41.28 	(b) Notwithstanding paragraph (a), an individual who holds a provisional license and 
41.29 	has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 
41.30 	169A.35, sections 169A.50 to 169A.53, or section 171.177, (2) convictions for crash-related 
41.31 	moving violations, and (3) convictions for moving violations that are not crash related, shall 
41.32 	have a $3.50 credit toward the fee for any classified under-21 driver's license. "Moving 
41.33 	violation" has the meaning given it in section 171.04, subdivision 1.
41.34 	(c) In addition to the driver's license fee required under paragraph (a), the commissioner 
41.35 	shall collect an additional $4 processing fee from each new applicant or individual renewing 
41.36 	a license with a school bus endorsement to cover the costs for processing an applicant's 
41.37 	initial and biennial physical examination certificate. The department shall not charge these 
41.38 	applicants any other fee to receive or renew the endorsement.
41.39 	(d) In addition to the fee required under paragraph (a), a driver's license agent may charge 
41.40 	and retain a filing fee as provided under section 171.061, subdivision 4.
42.1 	(e) In addition to the fee required under paragraph (a), the commissioner shall charge a 
42.2 	filing fee at the same amount as a driver's license agent under section 171.061, subdivision 
42.3 	4. Revenue collected under this paragraph must be deposited in the driver services operating 
42.4 	account.
42.5 	(f) An application for a Minnesota identification card, instruction permit, provisional 
42.6 	license, or driver's license, including an application for renewal, must contain a provision 
42.7 	that allows the applicant to add to the fee under paragraph (a), a $2 donation for the purposes 
42.8 	of public information and education on anatomical gifts under section 171.075.

42.9 	Sec. 42. [174.13] TRANSPORTATION FACILITIES CAPITAL PROGRAM.
42.10 		Subdivision 1.Program established. (a) A transportation facilities capital program is 
42.11 	established to prioritize among eligible projects that:
42.12 	(1) support the programmatic mission of the department;
42.13 	(2) extend the useful life of existing buildings; or
42.14 	(3) renovate or construct facilities to meet the department's current and future operational 
42.15 	needs.
42.16 	(b) Projects under the transportation facilities capital program may be funded by proceeds 
42.17 	from the sale of trunk highway bonds or from other funds appropriated for the purposes of 
42.18 	this section.
42.19 		Subd. 2.Accounts. (a) A transportation facilities capital account is established in the 
42.20 	trunk highway fund. The account consists of all money made available from the trunk 
42.21 	highway fund for the purposes of this section and any other money donated, allotted, 
42.22 	transferred, or otherwise provided to the account by law. Money in the account is appropriated 
42.23 	to the commissioner for the purposes specified and consistent with the standards and criteria 
42.24 	set forth in this section.
42.25 	(b) A transportation facilities capital account is established in the bond proceeds account 
42.26 	of the trunk highway fund. The account consists of trunk highway bond proceeds appropriated 
42.27 	to the commissioner for the transportation facilities capital program. Money in the account 
42.28 	may only be expended on trunk highway purposes, which includes the purposes in this 
42.29 	section.
42.30 		Subd. 3.Standards. (a) The legislature finds that many projects for preservation and 
42.31 	replacement of portions of existing capital assets constitute the construction, improvement, 
42.32 	and maintenance of the public highway system within the meaning of the Minnesota 
43.1 	Constitution, article XIV, section 11, and capital expenditures under generally accepted 
43.2 	accounting principles as applied to public expenditures. Projects can be financed more 
43.3 	efficiently and economically under the program than by direct appropriations for specific 
43.4 	projects.
43.5 	(b) When allocating funding under this section, the commissioner must review the 
43.6 	projects deemed eligible under subdivision 4 and prioritize allocations using the criteria in 
43.7 	subdivision 5. Money allocated to a specific project in an appropriation or other law must 
43.8 	be allocated as provided by the law.
43.9 		Subd. 4.Eligible expenditures; limitations. (a) A project is eligible under this section 
43.10 	only if it is a capital expenditure on a capital building asset owned or to be owned by the 
43.11 	state within the meaning of generally accepted accounting principles as applied to public 
43.12 	expenditures.
43.13 	(b) Capital budget expenditures that are eligible under this section include but are not 
43.14 	limited to: (1) acquisition of land and buildings; and (2) the predesign, engineering, 
43.15 	construction, furnishing and equipping of district headquarter buildings, truck stations, salt 
43.16 	storage or other unheated storage buildings, deicing and anti-icing facilities, fuel dispensing 
43.17 	facilities, highway rest areas, and vehicle weigh and inspection stations.
43.18 		Subd. 5.Criteria for priorities. When prioritizing funding allocation among projects 
43.19 	eligible under subdivision 4, the commissioner must consider:
43.20 	(1) whether a project ensures the effective and efficient condition and operation of the 
43.21 	facility;
43.22 	(2) the urgency in ensuring the safe use of existing buildings;
43.23 	(3) the project's total life-cycle cost;
43.24 	(4) additional criteria for priorities otherwise specified in state law, statute, or rule that 
43.25 	applies to a category listed in the act making an appropriation for the program; and
43.26 	(5) any other criteria the commissioner deems necessary.

43.27 	Sec. 43. Minnesota Statutes 2016, section 174.66, is amended to read:
43.28 	174.66 CONTINUATION OF CARRIER RULES.
43.29 	(a) Orders and directives in force, issued, or promulgated under authority of chapters 
43.30 	174A, 216A, 218, 219, 221, and 222 remain and continue in force and effect until repealed, 
43.31 	modified, or superseded by duly authorized orders or directives of the commissioner of 
43.32 	transportation. To the extent allowed under federal law or regulation, rules adopted under 
44.1 	authority of the following sections are transferred to the commissioner of transportation 
44.2 	and continue in force and effect until repealed, modified, or superseded by duly authorized 
44.3 	rules of the commissioner:
44.4 	(1) section 218.041 except rules related to the form and manner of filing railroad rates, 
44.5 	railroad accounting rules, and safety rules;
44.6 	(2) section 219.40;
44.7 	(3) rules relating to rates or tariffs, or the granting, limiting, or modifying of permits 
44.8 	under section 221.031, subdivision 1; and
44.9 	(4) rules relating to rates, charges, and practices under section 221.161, subdivision 4; 
44.10 	and
44.11 	(5) rules relating to rates, tariffs, or the granting, limiting, or modifying of permits under 
44.12 	section 221.121.
44.13 	(b) The commissioner shall review the transferred rules, orders, and directives and, when 
44.14 	appropriate, develop and adopt new rules, orders, or directives.

44.15 	Sec. 44. Minnesota Statutes 2016, section 221.031, subdivision 2d, is amended to read:
44.16 		Subd. 2d.Hours of service exemptions; agricultural purposes. The federal regulations 
44.17 	incorporated in section 221.0314, subdivision 9, for maximum driving and on-duty time,
44.18 	hours of service do not apply to drivers engaged in intrastate transportation within a 
44.19 	150-air-mile radius from the source of the commodities, or from the retail or wholesale 
44.20 	distribution point of the farm supplies, for:
44.21 	(1) agricultural commodities; or
44.22 	(2) farm supplies for agricultural purposes from March 15 to December 15 of each year; 
44.23 	or.
44.24 	(2) sugar beets from September 1 to May 15 of each year.

44.25 	Sec. 45. Minnesota Statutes 2016, section 221.031, is amended by adding a subdivision 
44.26 	to read:
44.27 		Subd. 2f.Hours of service exemptions; utility construction. (a) The federal regulations 
44.28 	incorporated in section 221.0314, subdivision 9, for hours of service do not apply to drivers 
44.29 	engaged in intrastate transportation of utility construction materials within a 50-mile radius 
44.30 	from the site of a construction or maintenance project.
45.1 	(b) For purposes of this subdivision, utility construction materials includes supplies and 
45.2 	materials used in a project to construct or maintain (1) a street or highway; (2) equipment 
45.3 	or facilities to furnish electric transmission service; (3) a telecommunications system or 
45.4 	cable communications system; (4) a waterworks system, sanitary sewer, or storm sewer; 
45.5 	(5) a gas heating service line; (6) a pipeline; and (7) a facility for other similar utility service.

45.6 	Sec. 46. Minnesota Statutes 2016, section 221.0314, subdivision 9, is amended to read:
45.7 		Subd. 9.Hours of service of driver. (a) Code of Federal Regulations, title 49, part 395, 
45.8 	is incorporated by reference, except that paragraphs (a), (c), (d), (f), (h), (i), (k), (m), and 
45.9 	(n) of section 395.1 of that part are not incorporated. In addition, cross-references to sections 
45.10 	or paragraphs not incorporated in this subdivision are not incorporated by reference.
45.11 	(b) For purposes of Code of Federal Regulations, title 49, part 395.1, paragraph (k), the 
45.12 	planting and harvest period for Minnesota is from January 1 through December 31 each 
45.13 	year.
45.14 	(c) The requirements of Code of Federal Regulations, title 49, part 395, do not apply to 
45.15 	drivers of lightweight vehicles.

45.16 	Sec. 47. Minnesota Statutes 2016, section 221.036, subdivision 1, is amended to read:
45.17 		Subdivision 1.Order. The commissioner may issue an order requiring violations to be 
45.18 	corrected and administratively assessing monetary penalties for a violation of (1) section 
45.19 	221.021; (2) section 221.033, subdivision 2b; (3) section 221.171; (4) section 221.141; (5) 
45.20 	a federal, state, or local law, regulation, rule, or ordinance pertaining to railroad-highway 
45.21 	grade crossings; or (6) rules of the commissioner relating to the transportation of hazardous 
45.22 	waste, motor carrier operations, or insurance, or tariffs and accounting. An order must be 
45.23 	issued as provided in this section.

45.24 	Sec. 48. Minnesota Statutes 2016, section 221.036, subdivision 3, is amended to read:
45.25 		Subd. 3.Amount of penalty; considerations. (a) The commissioner may issue an order 
45.26 	assessing a penalty of up to $5,000 for all violations identified during a single audit or 
45.27 	investigation of (1) section 221.021;,221.141;, or 221.171, or (2) rules of the commissioner 
45.28 	relating to motor carrier operations,or insurance, or tariffs and accounting, identified during 
45.29 	a single inspection, audit, or investigation.
45.30 	(b) The commissioner may issue an order assessing a penalty up to a maximum of 
45.31 	$10,000 for all violations of section 221.033, subdivision 2b, identified during a single 
45.32 	inspection or audit.
46.1 	(c) In determining the amount of a penalty, the commissioner shall consider:
46.2 	(1) the willfulness of the violation;
46.3 	(2) the gravity of the violation, including damage to humans, animals, air, water, land, 
46.4 	or other natural resources of the state;
46.5 	(3) the history of past violations, including the similarity of the most recent violation 
46.6 	and the violation to be penalized, the time elapsed since the last violation, the number of 
46.7 	previous violations, and the response of the person to the most recent violation identified;
46.8 	(4) the economic benefit gained by the person by allowing or committing the violation; 
46.9 	and
46.10 	(5) other factors as justice may require, if the commissioner specifically identifies the 
46.11 	additional factors in the commissioner's order.
46.12 	(d) The commissioner shall assess a penalty in accordance with Code of Federal 
46.13 	Regulations, title 49, section 383.53, against:
46.14 	(1) a driver who is convicted of a violation of an out-of-service order;
46.15 	(2) an employer who knowingly allows or requires an employee to operate a commercial 
46.16 	motor vehicle in violation of an out-of-service order; or
46.17 	(3) an employer who knowingly allows or requires an employee to operate a commercial 
46.18 	motor vehicle in violation of a federal, state, or local law or regulation pertaining to 
46.19 	railroad-highway grade crossings.

46.20 	Sec. 49. Minnesota Statutes 2016, section 221.122, subdivision 1, is amended to read:
46.21 		Subdivision 1.Registration, insurance, and filing requirements. (a) An order issued 
46.22 	by the commissioner which grants a certificate or permit must contain a service date.
46.23 	(b) The person to whom the order granting the certificate or permit is issued shall do 
46.24 	the following within 45 days from the service date of the order:
46.25 	(1) register vehicles which will be used to provide transportation under the permit or 
46.26 	certificate with the commissioner and pay the vehicle registration fees required by law; and
46.27 	(2) file and maintain insurance or bond as required by section 221.141 and rules of the 
46.28 	commissioner; and.
46.29 	(3) file rates and tariffs as required by section 221.161 and rules of the commissioner.

47.1 	Sec. 50. Minnesota Statutes 2016, section 221.161, subdivision 1, is amended to read:
47.2 		Subdivision 1.Filing; hearing upon commissioner initiative Tariff maintenance and 
47.3 	contents.  A household goods carrier shall file andmover must maintain with the 
47.4 	commissioner a tariff showing rates and charges for transporting household goods. Tariffs 
47.5 	must be prepared and filed in accordance with the rules of the commissioner. When tariffs 
47.6 	are filed in accordance with the rules and accepted by the commissioner, the filing constitutes 
47.7 	notice to the public and interested parties of the contents of the tariffs. The commissioner 
47.8 	shall not accept for filing tariffs that are unjust, unreasonable, unjustly discriminatory, 
47.9 	unduly preferential or prejudicial, or otherwise in violation of this section or rules adopted 
47.10 	under this section. If the tariffs appear to be unjust, unreasonable, unjustly discriminatory, 
47.11 	unduly preferential or prejudicial, or otherwise in violation of this section or rules adopted 
47.12 	under this section, after notification and investigation by the department, the commissioner 
47.13 	may suspend and postpone the effective date of the tariffs and assign the tariffs for hearing 
47.14 	upon notice to the household goods carrier filing the proposed tariffs and to other interested 
47.15 	parties, including users of the service and competitive carriers by motor vehicle and rail. 
47.16 	At the hearing, the burden of proof is on the household goods carrier filing the proposed 
47.17 	tariff to sustain the validity of the proposed schedule of rates and charges. The tariffs and 
47.18 	subsequent supplements to them or reissues of them must state the effective date, which 
47.19 	may not be less than ten days following the date of filing, unless the period of time is reduced 
47.20 	by special permission of the commissioner. A household goods mover must prepare a tariff 
47.21 	under this section that complies with Code of Federal Regulations, title 49, part 1310.3.

47.22 	Sec. 51. Minnesota Statutes 2016, section 221.161, is amended by adding a subdivision 
47.23 	to read:
47.24 		Subd. 5.Tariff availability. (a) A household goods mover subject to this section must 
47.25 	maintain all of its effective tariffs at its principal place of business and at each of its terminal 
47.26 	locations, and must make the tariffs available to the public for inspection at all times the 
47.27 	household goods mover is open for business. Any publication referred to in a tariff must be 
47.28 	maintained with that tariff.
47.29 	(b) Upon request, a household goods mover must provide copies of tariffs, specific tariff 
47.30 	provisions, or tariff subscriptions to the commissioner or any interested person.

47.31 	Sec. 52. Minnesota Statutes 2016, section 221.171, subdivision 1, is amended to read:
47.32 		Subdivision 1.Compensation fixed by schedule on file. No A household goods carrier 
47.33 	shall mover must not charge or receive a greater, lesser, or different compensation for the 
48.1 	transportation of persons or property or for related service,provided than the rates and 
48.2 	charges named in the carrier's schedule on file and in effect with the commissioner including 
48.3 	any rate fixed by the commissioner specified in the tariff under section 221.161; nor shall.
48.4 	A household goods carrier mover must not refund or remit in any manner or by any device, 
48.5 	directly or indirectly, the rates and charges required to be collected by the carrier mover
48.6 	under the carrier's mover's schedules or under the rates, if any, fixed by the commissioner.

48.7 	Sec. 53. Minnesota Statutes 2016, section 222.46, is amended to read:
48.8 	222.46 FREIGHT RAIL SERVICE IMPROVEMENT ACT; PURPOSE.
48.9 	The legislature finds and determines that integrated transportation systems, including 
48.10 	railways, highways and airways, are necessary in order to meet the economic and energy 
48.11 	needs of the citizens of the state, both now and in the future. The legislature finds that a 
48.12 	portion of the present railroad system in the state does not provide adequate service to 
48.13 	citizens of the state. The legislature further finds and determines that it is in the best interest 
48.14 	of the state to establish and fund a freight rail service improvement economic development
48.15 	program and to establish a railroad planning process in order to preserve and improve 
48.16 	essential rail service in the state.

48.17 	EFFECTIVE DATE. This section is effective June 30, 2018.

48.18 	Sec. 54. Minnesota Statutes 2016, section 222.50, subdivision 3, is amended to read:
48.19 		Subd. 3.Commissioner's powers; rules. The commissioner shall have has the power 
48.20 	to:
48.21 	(1) set priorities for the allocation and expenditure of money or in kind contributions 
48.22 	authorized under the rail service improvement program and develop criteria for eligibility 
48.23 	and approval of projects under the program. The criteria shall include the anticipated 
48.24 	economic and social benefits to the state and to the area being served and the economic 
48.25 	viability of the project;
48.26 	(2) negotiate and enter into contracts for rail line rehabilitation or other rail service 
48.27 	improvement;
48.28 	(3) (2) disburse state and federal money for rail service improvements; and
48.29 	(4) (3) adopt rules necessary to carry out the purposes of sections 222.46 to 222.54.

48.30 	EFFECTIVE DATE. This section is effective June 30, 2018.

49.1 	Sec. 55. Minnesota Statutes 2016, section 222.50, subdivision 4, is amended to read:
49.2 		Subd. 4.Contract. The commissioner may negotiate and enter into contracts for the 
49.3 	purpose of rail service improvement and may incorporate funds available from the federal 
49.4 	government. The participants in these contracts shall be railroads, rail users, and the 
49.5 	department, and may be political subdivisions of the state and the federal government. In 
49.6 	such contracts, participation by all parties shall be voluntary. The commissioner may provide 
49.7 	a portion of the money required to carry out the terms of any such contract by expenditure 
49.8 	from the freight rail service improvement account.

49.9 	EFFECTIVE DATE. This section is effective June 30, 2018.

49.10 	Sec. 56. [222.505] FREIGHT RAIL ECONOMIC DEVELOPMENT PROGRAM.
49.11 		Subdivision 1.Definition. (a) For purposes of this section, "program" means the freight 
49.12 	rail economic development program established in this section.
49.13 		Subd. 2.Program established. (a) The commissioner, in consultation with the 
49.14 	commissioner of employment and economic development, must establish a freight rail 
49.15 	economic development program as provided under this section.
49.16 	(b) By January 1, 2019, the commissioners must implement the program and begin 
49.17 	accepting applications.
49.18 		Subd. 3.Freight rail accounts; appropriation. (a) A freight rail account is established 
49.19 	in the special revenue fund. The account consists of funds provided under paragraphs (b) 
49.20 	and (c), section 222.63, subdivision 8, and any other money donated, allotted, transferred, 
49.21 	or otherwise provided to the account. The account must not include any bond proceeds 
49.22 	authorized by the Minnesota Constitution, article XI, section 5, clause (i). Funds in the 
49.23 	account are annually appropriated to the commissioner for the program under this section.
49.24 	(b) All funds provided to the commissioner from agreements or loans under section 
49.25 	222.50 must be deposited in the freight rail account in the special revenue fund.
49.26 	(c) All funds made available to the commissioner from the disposition of railroad 
49.27 	right-of-way or of any other property acquired pursuant to sections 222.46 to 222.62 must 
49.28 	be deposited in the freight rail account in the special revenue fund.
49.29 	(d) A freight rail account is established in the bond proceeds fund. The account consists 
49.30 	of state bond proceeds appropriated to the commissioner for the program under this section. 
49.31 	Money in the account may be expended only for bond-eligible purposes.
50.1 		Subd. 4.Program administration. (a) The commissioner, in consultation with the 
50.2 	commissioner of employment and economic development, must establish a project selection 
50.3 	process for financial assistance under the program. The process must include public notice 
50.4 	of available funds, procedures to submit applications, public access to information on project 
50.5 	evaluation and selection, and financial assistance awards. The process must minimize 
50.6 	applicant burdens and the length of time for application evaluation.
50.7 	(b) The commissioner must maintain on an ongoing basis a project requests list that 
50.8 	identifies all eligible projects that have been evaluated for grant awards under the program.
50.9 	(c) An applicant must apply for financial assistance in the manner and at the times 
50.10 	determined by the commissioners.
50.11 	(d) The commissioner must make reasonable efforts to (1) publicize each solicitation 
50.12 	for applications among all eligible recipients, and (2) provide technical and informational 
50.13 	assistance related to applications.
50.14 		Subd. 5.Consultation. In developing the program and on an ongoing basis, the 
50.15 	commissioner must consult with eligible recipients of financial assistance under subdivision 
50.16 	8 and with counties and statutory and home rule charter cities in which industrial parks are 
50.17 	located or proposed to be located. At a minimum, consultation must address:
50.18 	(1) the project selection process, including project eligibility requirements, evaluation 
50.19 	criteria and prioritization, and any significant policies in the program;
50.20 	(2) flexibility of evaluation criteria to address unique situations;
50.21 	(3) timeliness of project evaluation and award of financial assistance;
50.22 	(4) adequacy of the program funding level; and
50.23 	(5) legislative proposals for program funding.
50.24 		Subd. 6.Financial assistance; grants and loans. The commissioner may provide 
50.25 	financial assistance under the program through grants or through loans in the manner provided 
50.26 	under section 222.50, subdivisions 4 and 5.
50.27 		Subd. 7.Financial assistance; limitations. (a) When calculated in conjunction with 
50.28 	any other state funding sources, a grant award under the program must not provide combined 
50.29 	state funding that exceeds 85 percent of the total project cost estimate.
50.30 	(b) The commissioner must ensure that financial assistance is provided in a manner that 
50.31 	is balanced throughout the state, including with respect to (1) the number of projects receiving 
50.32 	funding in a particular geographic location or region of the state, and (2) the total amount 
51.1 	of financial assistance provided for projects in a particular geographic location or region of 
51.2 	the state.
51.3 		Subd. 8.Award recipient eligibility. (a) Eligible recipients of financial assistance under 
51.4 	the program are:
51.5 	(1) railroad companies that are classified by federal law or regulation as Class II railroads, 
51.6 	Class II rail carriers, Class III railroads, or Class III rail carriers;
51.7 	(2) rail users; and
51.8 	(3) political subdivisions.
51.9 	(b) An eligible recipient may receive funds regardless of rail facility ownership.
51.10 		Subd. 9.Project eligibility. (a) The commissioner, in consultation with the commissioner 
51.11 	of employment and economic development, must establish project eligibility criteria under 
51.12 	the program. At a minimum, an eligible project must:
51.13 	(1) improve safety, efficiency, service, or capacity of railroad freight movement;
51.14 	(2) provide for rail line capital maintenance, preservation, rehabilitation, or improvements;
51.15 	(3) improve rail service for a rail user or rail carrier; or
51.16 	(4) promote the development of industrial parks primarily or substantially served by rail 
51.17 	service.
51.18 	(b) A project must be consistent with transportation plans adopted by the commissioner, 
51.19 	including the statewide freight and passenger rail plan under section 174.03, subdivision 
51.20 	1b.
51.21 		Subd. 10.Project evaluation and prioritization. The commissioner, in consultation 
51.22 	with the commissioner of employment and economic development, must establish project 
51.23 	evaluation criteria for grant awards under the program. At a minimum, the criteria must 
51.24 	objectively prioritize projects based on:
51.25 	(1) economic and employment impacts, including but not limited to responsiveness to 
51.26 	emergent market conditions;
51.27 	(2) addressing rail lines that have deteriorated or are in danger of deteriorating to such 
51.28 	a degree that the rail line is unable to carry the speeds and weights necessary to efficiently 
51.29 	transport goods and products; and
51.30 	(3) percentage commitment of funding or in-kind assistance for the project from nonpublic 
51.31 	sources.
52.1 		Subd. 11.Expenditures. The commissioner may provide financial assistance and expend 
52.2 	funds under the program for:
52.3 	(1) capital improvement projects designed to improve a rail user or a rail carrier's rail 
52.4 	service which includes but is not limited to rail track, track structures, and rail facilities and 
52.5 	buildings;
52.6 	(2) rehabilitation projects designed to improve a rail user or a rail carrier's rail service;
52.7 	(3) rail-related development of industrial parks primarily or substantially served by rail 
52.8 	service, which:
52.9 	(i) includes capital improvements to or rehabilitation of main industrial lead track; and
52.10 	(ii) excludes siding track designed to serve areas of an industrial park for which occupants 
52.11 	are unidentified or uncommitted;
52.12 	(4) highway-rail grade crossing improvement or grade separation projects, including 
52.13 	but not limited to the local matching portion for federal grants;
52.14 	(5) capital improvement projects designed to improve capacity or safety at rail yards;
52.15 	(6) acquisition, maintenance, management, and disposition of railroad right-of-way 
52.16 	under the state rail bank program in section 222.63;
52.17 	(7) acquisition of a rail line by a regional railroad authority established under chapter 
52.18 	398A;
52.19 	(8) rail planning studies;
52.20 	(9) costs related to contractual agreements under section 222.52; and
52.21 	(10) financial assistance under this section.
52.22 		Subd. 12.Design, engineering, and construction standards. (a) The commissioner is 
52.23 	prohibited from establishing specifications or engineering standards that are more restrictive 
52.24 	than federal track safety standards under Code of Federal Regulations, title 49, part 213, or 
52.25 	successor requirements, for track and track structures awarded financial assistance under 
52.26 	the program.
52.27 	(b) Sections 16B.30 to 16B.355 do not apply to rail facilities and buildings awarded 
52.28 	financial assistance under the program.
52.29 		Subd. 13.Political subdivisions. Any political subdivision may, with the approval of 
52.30 	the commissioner, appropriate money for freight rail or rail service improvement and may 
52.31 	participate in the freight rail economic development program and federal rail programs.

53.1 	EFFECTIVE DATE. This section is effective June 30, 2018.

53.2 	Sec. 57. Minnesota Statutes 2016, section 222.52, is amended to read:
53.3 	222.52 COOPERATION BETWEEN STATES.
53.4 	The commissioner may cooperate with other states in connection with the freight rail 
53.5 	service improvement economic development program under section 222.505 and the railroad 
53.6 	planning process. In exercising the authority conferred by this section, the commissioner 
53.7 	may enter into contractual agreements with other states, including multistate coalitions.

53.8 	EFFECTIVE DATE. This section is effective June 30, 2018.

53.9 	Sec. 58. Minnesota Statutes 2016, section 222.57, is amended to read:
53.10 	222.57 RAIL USER AND RAIL CARRIER LOAN GUARANTEE ACCOUNT.
53.11 	There is created a rail user and rail carrier loan guarantee account as a separate account 
53.12 	in the rail service improvement account, which shall be used by the commissioner for 
53.13 	carrying out the provisions of sections 222.55 to 222.62 with respect to loans insured under 
53.14 	section 222.58. The commissioner may transfer to the rail user and rail carrier loan guarantee 
53.15 	account from money otherwise available in the freight rail service improvement account 
53.16 	whatever amount is necessary to implement the rail user and rail carrier loan guarantee 
53.17 	program, except that bond proceeds may not be transferred to the account for insurance of 
53.18 	loans made for the purposes specified in section 222.58, subdivision 2, paragraph (b), clauses 
53.19 	(3) to (5). The commissioner may withdraw any amount from the rail user and rail carrier 
53.20 	loan guarantee account that is not required to insure outstanding loans as provided in section 
53.21 	222.60, subdivision 1.

53.22 	EFFECTIVE DATE. This section is effective June 30, 2018.

53.23 	Sec. 59. Minnesota Statutes 2016, section 222.63, subdivision 8, is amended to read:
53.24 		Subd. 8.Rail bank accounts; appropriation. (a) A special account shall be maintained 
53.25 	in the state treasury, designated as the rail bank maintenance account, is established in the 
53.26 	special revenue fund to record the receipts and expenditures of the commissioner of 
53.27 	transportation for the maintenance of rail bank property. Funds received by the commissioner 
53.28 	of transportation from interest earnings, administrative payments, rentals, fees, or charges 
53.29 	for the use of rail bank property, or received from rail line rehabilitation contracts shall be
53.30 	are credited to the rail bank maintenance account and must be used for the maintenance of 
53.31 	that to maintain the property and held as a reserve for maintenance expenses in an amount 
54.1 	determined by the commissioner, and. Amounts received in the rail bank maintenance 
54.2 	account in excess of the reserve requirements shall must be transferred to the freight rail 
54.3 	service improvement account under section 222.505, subdivision 3.
54.4 	(b) All proceeds of the sale of abandoned rail lines shall must be deposited in the freight
54.5 	rail service improvement account.
54.6 	(c) All money to be deposited in this the rail service improvement bank maintenance
54.7 	account as provided in this subdivision is appropriated to the commissioner of transportation 
54.8 	for the purposes of this section. The appropriations shall do not lapse but shall be and are
54.9 	available until the purposes for which the funds are appropriated are accomplished.

54.10 	EFFECTIVE DATE. This section is effective June 30, 2018.

54.11 	Sec. 60. Minnesota Statutes 2016, section 297A.993, is amended by adding a subdivision 
54.12 	to read:
54.13 		Subd. 2a.Reporting. (a) Annually by March 1, a county that imposes a tax under this 
54.14 	section and previously imposed a local sales tax as part of a joint powers agreement under 
54.15 	section 297A.992 must submit a report on the use of funds to the members and staff of the 
54.16 	legislative committees with jurisdiction over transportation policy and finance.
54.17 	(b) At a minimum, the report must identify:
54.18 	(1) the amount of revenue under this section in each of the previous three years;
54.19 	(2) a breakdown of expenditures for each of the previous three years, including but not 
54.20 	limited to a summary list of funded projects or operations;
54.21 	(3) the balance in available funds as of the end of previous year; and
54.22 	(4) any projects funded under this section and completed in the previous year.

54.23 	Sec. 61. [299A.704] DRIVER AND VEHICLE SERVICES FUND.
54.24 	A driver and vehicle services fund is established within the state treasury. The fund 
54.25 	consists of accounts and money as specified by law, and any other money otherwise donated, 
54.26 	allotted, appropriated, or legislated to the fund.

54.27 	Sec. 62. Minnesota Statutes 2016, section 299A.705, is amended to read:
54.28 	299A.705 DRIVER AND VEHICLE SERVICES ACCOUNTS.
54.29 		Subdivision 1.Vehicle services operating account. (a) The vehicle services operating 
54.30 	account is created in the special revenue driver and vehicle services fund, consisting of all 
55.1 	money from the vehicle services fees specified in chapters 168, 168A, and 168D, and any 
55.2 	other money otherwise donated, allotted, appropriated, or legislated to this the account.
55.3 	(b) Funds appropriated are available from this account must be used by the commissioner 
55.4 	of public safety to administer the vehicle services as specified in chapters 168, 168A, and 
55.5 	168D, and section 169.345, including:
55.6 	(1) designing, producing, issuing, and mailing vehicle registrations, plates, emblems, 
55.7 	and titles;
55.8 	(2) collecting title and registration taxes and fees;
55.9 	(3) transferring vehicle registration plates and titles;
55.10 	(4) maintaining vehicle records;
55.11 	(5) issuing disability certificates and plates;
55.12 	(6) licensing vehicle dealers;
55.13 	(7) appointing, monitoring, and auditing deputy registrars; and
55.14 	(8) inspecting vehicles when required by law.
55.15 		Subd. 2.Driver services operating account. (a) The driver services operating account 
55.16 	is created in the special revenue driver and vehicle services fund, consisting of all money 
55.17 	collected under chapter 171 and any other money otherwise donated, allotted, appropriated, 
55.18 	or legislated to the account.
55.19 	(b) Money in the Funds appropriated from this account must be used by the commissioner 
55.20 	of public safety to administer the driver services specified in chapters 169A and 171, 
55.21 	including the activities associated with producing and mailing drivers' licenses and 
55.22 	identification cards and notices relating to issuance, renewal, or withdrawal of driving and 
55.23 	identification card privileges for any fiscal year or years and for the testing and examination 
55.24 	of drivers.
55.25 		Subd. 3.Driver and vehicle services technology account. (a) The driver and vehicle 
55.26 	services technology account is created in the special revenue driver and vehicle services
55.27 	fund, consisting of the technology surcharge collected as specified in chapters 168, 168A, 
55.28 	and 171; the filing fee revenue collected under section 168.33, subdivision 7; section 168.33
55.29 	and any other money otherwise donated, allotted, appropriated, or legislated to this account.
55.30 	(b) Money in the account is annually appropriated to the commissioner of public safety 
55.31 	to support the research, development, deployment, and maintenance of a driver and vehicle 
55.32 	services information system.
56.1 	(c) Following completion of the deposit of filing fee revenue into the driver and vehicle 
56.2 	services technology account as provided under section 168.33, subdivision 7, the 
56.3 	commissioner shall submit a notification to the chairs and ranking minority members of the 
56.4 	legislative committees with jurisdiction over transportation policy and finance concerning 
56.5 	driver and vehicle services information system implementation, which must include 
56.6 	information on (1) total revenue deposited in the driver and vehicle services technology 
56.7 	account, with a breakdown by sources of funds; (2) total project costs incurred, with a 
56.8 	breakdown by key project components; and (3) an estimate of ongoing system maintenance 
56.9 	costs.
56.10 		Subd. 4.Prohibited expenditures. The commissioner is prohibited from expending 
56.11 	money from driver and vehicle services accounts created in the special revenue driver and 
56.12 	vehicle services fund for any purpose that is not specifically authorized in this section or in 
56.13 	the chapters specified in this section.

56.14 	Sec. 63. Minnesota Statutes 2016, section 360.013, is amended by adding a subdivision 
56.15 	to read:
56.16 		Subd. 46a.Comprehensive plan. "Comprehensive plan" has the meaning given in 
56.17 	section 394.22, subdivision 9, or 462.352, subdivision 5.

56.18 	Sec. 64. Minnesota Statutes 2016, section 360.017, subdivision 1, is amended to read:
56.19 		Subdivision 1.Creation; authorized disbursements.  (a) There is hereby created a 
56.20 	fund to be known as the state airports fund. The fund shall consist of all money appropriated 
56.21 	to it, or directed to be paid into it, by the legislature.
56.22 	(b) The state airports fund shall be paid out on authorization of the commissioner and 
56.23 	shall be used:
56.24 	(1) to acquire, construct, improve, maintain, and operate airports and other air navigation 
56.25 	facilities;
56.26 	(2) to assist municipalities in the planning, acquisition, construction, improvement, and 
56.27 	maintenance of airports and other air navigation facilities;
56.28 	(3) to assist municipalities to initiate, enhance, and market scheduled air service at their 
56.29 	airports;
56.30 	(4) to promote interest and safety in aeronautics through education and information; and
57.1 	(5) to pay the salaries and expenses of the Department of Transportation related to 
57.2 	aeronautic planning, administration, and operation. All allotments of money from the state 
57.3 	airports fund for salaries and expenses shall be approved by the commissioner of management 
57.4 	and budget.
57.5 	(c) A municipality that adopts a comprehensive plan that the commissioner finds is 
57.6 	incompatible with the state aviation plan is not eligible for assistance from the state airports 
57.7 	fund.

57.8 	Sec. 65. Minnesota Statutes 2016, section 360.021, subdivision 1, is amended to read:
57.9 		Subdivision 1.Authority to establish. The commissioner is authorized and empowered, 
57.10 	on behalf of and in the name of this state, within the limitation of available appropriations, 
57.11 	to acquire, by purchase, gift, devise, lease, condemnation proceedings, or otherwise, property, 
57.12 	real or personal, for the purpose of establishing and constructing restricted landing areas 
57.13 	and other air navigation facilities and to acquire in like manner, own, control, establish, 
57.14 	construct, enlarge, improve, maintain, equip, operate, regulate, and police such restricted 
57.15 	landing areas and other air navigation facilities, either within or without this state; and to 
57.16 	make, prior to any such acquisition, investigations, surveys, and plans. The commissioner 
57.17 	may maintain, equip, operate, regulate, and police airports, either within or without this 
57.18 	state. The operation and maintenance of airports is an essential public service. The 
57.19 	commissioner may maintain at such airports facilities for the servicing of aircraft and for 
57.20 	the comfort and accommodation of air travelers. The commissioner may dispose of any 
57.21 	such property, airport, restricted landing area, or any other air navigation facility, by sale, 
57.22 	lease, or otherwise, in accordance with the laws of this state governing the disposition of 
57.23 	other like property of the state. The commissioner may not acquire or take over any restricted 
57.24 	landing area, or other air navigation facility without the consent of the owner. The 
57.25 	commissioner shall not acquire any additional state airports nor establish any additional 
57.26 	state-owned airports. The commissioner may erect, equip, operate, and maintain on any 
57.27 	airport buildings and equipment necessary and proper to maintain, and conduct such airport 
57.28 	and air navigation facilities connected therewith. The commissioner shall not expend money 
57.29 	for land acquisition, or for the construction, improvement, or maintenance of airports, or 
57.30 	for air navigation facilities for an airport, unless the governmental unit municipality, county, 
57.31 	or joint airport zoning board involved has or is establishing a zoning authority for that 
57.32 	airport, and the authority has made a good-faith showing that it is in the process of and will 
57.33 	complete with due diligence, an airport zoning ordinance in accordance with sections 360.061
57.34 	to 360.074. The commissioner may provide funds to support airport safety projects that 
57.35 	maintain existing infrastructure, regardless of a zoning authority's efforts to complete a 
58.1 	zoning regulation. The commissioner may withhold funding from only the airport subject 
58.2 	to the proposed zoning ordinance. Notwithstanding the foregoing prohibition, the 
58.3 	commissioner may continue to maintain the state-owned airport at Pine Creek.

58.4 	Sec. 66. Minnesota Statutes 2016, section 360.062, is amended to read:
58.5 	360.062 AIRPORT HAZARD PREVENTION; PROTECTING EXISTING 
58.6 	NEIGHBORHOOD LAND USES.
58.7 	(a) It is hereby found that an airport hazard endangers the lives and property of users of 
58.8 	the airport and of occupants of land in its vicinity, and may reduce the size of the area 
58.9 	available for the landing, takeoff, and maneuvering of aircraft, thereby impairing the utility 
58.10 	of the airport and the public investment therein. It is also found that the social and financial 
58.11 	costs of disrupting existing land uses around airports in built up urban areas, particularly 
58.12 	established residential neighborhoods, often outweigh the benefits of a reduction in airport 
58.13 	hazards that might result from the elimination or removal of those uses.
58.14 	(b) Accordingly, it is hereby declared: (1) that the creation or establishment of an airport 
58.15 	hazard is a public nuisance and an injury to the community served by the airport in question; 
58.16 	(2) that it is therefor necessary in the interest of the public health, public safety, and general 
58.17 	welfare that the creation or establishment of airport hazards be prevented and that this should 
58.18 	be accomplished to the extent legally possible, by exercise of the police power, without 
58.19 	compensation; and (3) that the elimination or removal of existing land uses, particularly 
58.20 	established residential neighborhoods in built-up urban areas, or their designation as 
58.21 	nonconforming uses is not in the public interest and should be avoided whenever possible 
58.22 	consistent with reasonable standards of safety.
58.23 	(c) It is further declared that the prevention of the creation or establishment of airport 
58.24 	hazards and the elimination, removal, alteration, mitigation, or marking and lighting of 
58.25 	existing airport hazards are essential public purposes services for which political subdivisions 
58.26 	may raise and expend public funds and acquire land or property interests therein.

58.27 	Sec. 67. Minnesota Statutes 2016, section 360.063, subdivision 1, is amended to read:
58.28 		Subdivision 1.Enforcement under police power. (a) In order to prevent the creation 
58.29 	or establishment of airport hazards, every municipality having an airport hazard area within 
58.30 	its territorial limits may, unless a joint airport zoning board is permitted under subdivision 
58.31 	3, adopt, amend from time to time, administer, and enforce, under the police power and in 
58.32 	the manner and upon the conditions hereinafter prescribed, airport zoning regulations for 
58.33 	such airport hazard area, which regulations may divide such area into zones, and, within 
59.1 	such zones, specify the land uses permitted and regulate and restrict the height to which 
59.2 	structures and trees may be erected or allowed to grow.
59.3 	(b) For the purpose of promoting In order to promote health, safety, order, convenience, 
59.4 	prosperity, general welfare and for conserving to conserve property values and encouraging
59.5 	encourage the most appropriate use of land, the municipality may regulate the location, size 
59.6 	and use of buildings and the density of population in that portion of an airport hazard area 
59.7 	under approach zones for a distance not to exceed two miles from the airport boundary and 
59.8 	in other portions of an in airport hazard area may regulate by land use zoning for a distance 
59.9 	not to exceed one mile from the airport boundary, and by height-restriction zoning for a 
59.10 	distance not to exceed 1-1/2 miles from the airport boundary areas: (1) land use; (2) height 
59.11 	restrictions; (3) the location, size, and use of buildings; and (4) the density of population.
59.12 	(c) The powers granted by this subdivision may be exercised by metropolitan airports 
59.13 	commissions in contiguous cities of the first class in and for which they have been created.
59.14 	(d) In the case of airports owned or operated by the state of Minnesota such powers shall 
59.15 	be exercised by the state airport zoning boards or by the commissioner of transportation as 
59.16 	authorized herein.

59.17 	Sec. 68. Minnesota Statutes 2016, section 360.063, subdivision 3, is amended to read:
59.18 		Subd. 3.Joint airport zoning board. (a) Where an airport is owned or controlled by a 
59.19 	municipality and an airport hazard area appertaining to the airport is located within the 
59.20 	territorial limits of another county or municipality, the municipality owning or controlling 
59.21 	the airport may request a county or municipality in which an airport hazard area is located:
59.22 	(1) to adopt and enforce airport zoning regulations for the area in question that conform 
59.23 	to standards prescribed by the commissioner pursuant to subdivision 4 under sections 
59.24 	360.0655 and 360.0656; or
59.25 	(2) to join in creating a joint airport zoning board pursuant to paragraph (b). The owning 
59.26 	or controlling municipality shall determine which of these actions it shall request, except 
59.27 	as provided in paragraph (e) for the Metropolitan Airports Commission. The request shall 
59.28 	be made by certified mail to the governing body of each county and municipality in which 
59.29 	an airport hazard area is located.
59.30 	(b) Where an airport is owned or controlled by a municipality and an airport hazard area 
59.31 	appertaining to the airport is located within the territorial limits of another county or 
59.32 	municipality, the municipality owning or controlling the airport and the county or other 
59.33 	municipality within which the airport hazard area is located may, by ordinance or resolution 
60.1 	duly adopted, create a joint airport zoning board, which board shall have the same power 
60.2 	to adopt, administer, and enforce airport zoning regulations applicable to the airport hazard 
60.3 	area in question as that vested by subdivision 1 in the municipality within which the area 
60.4 	is located. A joint board shall have as members two representatives appointed by the 
60.5 	municipality owning or controlling the airport and two from the county or municipality, or 
60.6 	in case more than one county or municipality is involved two from each county or 
60.7 	municipality, in which the airport hazard is located, and in addition a chair elected by a 
60.8 	majority of the members so appointed. All members shall serve at the pleasure of their 
60.9 	respective appointing authority. Notwithstanding any other provision of law to the contrary, 
60.10 	if the owning and controlling municipality is a city of the first class it shall appoint four 
60.11 	members to the board, and the chair of the board shall be elected from the membership of 
60.12 	the board.
60.13 	(c) If a county or municipality, within 60 days of receiving a request from an owning 
60.14 	or controlling municipality pursuant to paragraph (a), fails to adopt, or thereafter fails to 
60.15 	enforce, the zoning regulations or fails to join in creating a joint airport zoning board, the 
60.16 	owning or controlling municipality, or a joint airport zoning board created without 
60.17 	participation by the subdivisions which fail to join the board, may itself adopt, administer, 
60.18 	and enforce airport zoning regulations for the airport hazard area in question. In the event 
60.19 	of conflict between the regulations and airport zoning regulations adopted by the county or 
60.20 	municipality within which the airport hazard area is located, section 360.064, subdivision 
60.21 	2, applies.
60.22 	(d) "Owning or controlling municipality," as used in this subdivision, includes:
60.23 	(1) a joint airport operating board created pursuant to section 360.042 that has been 
60.24 	granted all the powers of a municipality in zoning matters under the agreement creating the 
60.25 	board;
60.26 	(2) a joint airport operating board created pursuant to section 360.042 that has not been 
60.27 	granted zoning powers under the agreement creating the board; provided that the board shall 
60.28 	not itself adopt zoning regulations nor shall a joint airport zoning board created at its request 
60.29 	adopt zoning regulations unless all municipalities that created the joint operating board join 
60.30 	to create the joint zoning board; and
60.31 	(3) the Metropolitan Airports Commission established and operated pursuant to chapter 
60.32 	473.
60.33 	(e) The Metropolitan Airports Commission shall request creation of one joint airport 
60.34 	zoning board for each airport operated under its authority.

61.1 	Sec. 69. Minnesota Statutes 2016, section 360.064, subdivision 1, is amended to read:
61.2 		Subdivision 1.Comprehensive regulations. In the event that a municipality has adopted, 
61.3 	or hereafter adopts, a comprehensive zoning ordinance regulating, among other things the 
61.4 	height of buildings, any airport zoning regulations applicable to the same area or portion 
61.5 	thereof may must be incorporated by reference or incorporated in and made a part of such 
61.6 	comprehensive zoning regulations and be administered and enforced in connection therewith.

61.7 	Sec. 70. Minnesota Statutes 2016, section 360.065, subdivision 1, is amended to read:
61.8 		Subdivision 1.Notice of proposed zoning regulations, hearing. (a) No airport zoning 
61.9 	regulations shall be adopted, amended, or changed under sections 360.011 to 360.076, 
61.10 	except by action of the governing body of the municipality or, county in question, or joint 
61.11 	airport zoning board under section 360.0655 or 360.0656, or the boards provided for in 
61.12 	section 360.063, subdivisions 3 and 7, or by the commissioner as provided in subdivisions 
61.13 	6 and 8, after public hearings, at which parties in interest and citizens shall have an 
61.14 	opportunity to be heard.
61.15 	(b) A public hearing shall must be held on the proposed airport zoning regulations 
61.16 	proposed by a municipality, county, or joint airport zoning board before they are submitted 
61.17 	for approval to the commissioner and after that approval but before final adoption by the 
61.18 	local zoning authority for approval. If any changes that alter the regulations placed on a 
61.19 	parcel of land are made to the proposed airport zoning regulations after the initial public 
61.20 	hearing, the municipality, county, or joint airport zoning board must hold a second public 
61.21 	hearing before final adoption of the regulation. The commissioner may require a second 
61.22 	hearing as determined necessary.
61.23 	(c) Notice of a hearing required pursuant to this subdivision shall must be published by 
61.24 	the local zoning authority municipality, county, or joint airport zoning board at least three 
61.25 	times during the period between 15 days and five days before the hearing in an official 
61.26 	newspaper and in a second newspaper designated by that authority which has a wide general 
61.27 	circulation in the area affected by the proposed regulations.and posted on the municipality's, 
61.28 	county's, or joint airport zoning board's Web site. If there is not a second newspaper of wide 
61.29 	general circulation in the area that the municipality, county, or joint airport zoning board 
61.30 	can designate for the notice, the municipality, county, or joint airport zoning board is only 
61.31 	required to publish the notice once in the official newspaper of the jurisdiction. The notice 
61.32 	shall not be published in the legal notice section of a newspaper. The notice must specify 
61.33 	the time, location, and purpose of the hearing, and must identify any additional location and 
62.1 	time the proposed regulations will be available for public inspection. A copy of the published 
62.2 	notice must be added to the record of the proceedings.
62.3 	(d) Notice of a hearing shall also be mailed to the governing body of each political 
62.4 	subdivision in which property affected by the regulations is located. Notice shall must be 
62.5 	given by mail at least 15 ten days before each hearing to any persons in municipalities that 
62.6 	own land proposed to be included in safety zone A or B as provided in the rules of the 
62.7 	Department of Transportation and landowners where the location or size of a building, or 
62.8 	the density of population, will be regulated. Mailed notice must also be provided at least 
62.9 	ten days before each hearing to persons or municipalities that have previously requested 
62.10 	such notice from the authority.municipality, county, or joint airport zoning board. The 
62.11 	notice must specify the time, location, and purpose of the hearing, and must identify any 
62.12 	additional location and time the proposed regulations will be made available for public 
62.13 	inspection. Mailed notice must also identify the property affected by the regulations. For 
62.14 	the purpose of giving providing mailed notice, the authority municipality, county, or joint 
62.15 	airport zoning board may use any appropriate records to determine the names and addresses 
62.16 	of owners. A copy of the notice and a list of the owners and addresses to which the notice 
62.17 	was sent shall be attested to by the responsible person and shall must be made a part of
62.18 	added to the records of the proceedings. The Failure to give provide mailed notice to 
62.19 	individual property owners, or defects a defect in the notice, shall does not invalidate the 
62.20 	proceedings; provided if a bona fide attempt to comply with this subdivision has been was
62.21 	made. A notice shall describe the property affected by the proposed regulations and the 
62.22 	restrictions to be imposed on the property by the regulations and shall state the place and 
62.23 	time at which the proposed regulations are available for public inspection.

62.24 	Sec. 71. [360.0655] AIRPORT ZONING REGULATIONS BASED ON 
62.25 	COMMISSIONER'S STANDARDS; SUBMISSION PROCESS.
62.26 		Subdivision 1.Submission to commissioner; review. (a) Except as provided in section 
62.27 	360.0656, prior to adopting zoning regulations the municipality, county, or joint airport 
62.28 	zoning board must submit the proposed regulations to the commissioner for the commissioner 
62.29 	to determine whether the regulations conform to the standards prescribed by the 
62.30 	commissioner. The municipality, county, or joint airport zoning board may elect to complete 
62.31 	custom airport zoning under section 360.0656 instead of using the commissioner's standard, 
62.32 	but only after providing written notice to the commissioner.
62.33 	(b) Notwithstanding section 15.99, the commissioner must examine the proposed 
62.34 	regulations within 90 days of receipt of the regulations and report to the municipality, county, 
63.1 	or joint airport zoning board the commissioner's approval or objections, if any. Failure to 
63.2 	respond within 90 days is deemed an approval. The commissioner may request additional 
63.3 	information from the municipality, county, or joint airport zoning board within the 90-day 
63.4 	review period. If the commissioner requests additional information, the 90-day review period 
63.5 	is tolled until the commissioner receives information and deems the information satisfactory.
63.6 	(c) If the commissioner objects on the grounds that the regulations do not conform to 
63.7 	the standards prescribed by the commissioner, the municipality, county, or joint airport 
63.8 	zoning board must make amendments necessary to resolve the objections or provide written 
63.9 	notice to the commissioner that the municipality, county, or joint airport zoning board has 
63.10 	elected to proceed with zoning under section 360.0656.
63.11 	(d) If the municipality, county, or joint airport zoning board makes revisions to the 
63.12 	proposed regulations after its initial public hearing, the municipality, county, or joint airport 
63.13 	zoning board must conduct a second public hearing on the revisions and resubmit the revised 
63.14 	proposed regulations to the commissioner for review. The commissioner must examine the 
63.15 	revised proposed regulations within 90 days of receipt to determine whether the revised 
63.16 	proposed regulations conform to the standards prescribed by the commissioner.
63.17 	(e) If, after a second review period, the commissioner determines that the municipality, 
63.18 	county, or joint airport zoning board failed to submit proposed regulations that conform to 
63.19 	the commissioner's standards, the commissioner must provide a final written decision to 
63.20 	the municipality, county, or joint airport zoning board.
63.21 	(f) The municipality, county, or joint airport zoning board must not adopt regulations 
63.22 	or take other action until the proposed regulations are approved by the commissioner.
63.23 	(g) The commissioner may approve local zoning ordinances that are more stringent than 
63.24 	the commissioner's standards.
63.25 	(h) If the commissioner approves the proposed regulations, the municipality, county, or 
63.26 	joint airport zoning board may adopt the regulations.
63.27 	(i) A copy of the adopted regulations must be filed with the county recorder in each 
63.28 	county that contains a zoned area subject to the regulations.
63.29 	(j) Substantive rights that existed and had been exercised prior to August 1, 2018, are 
63.30 	not affected by the filing of the regulations.
63.31 		Subd. 2.Protection of existing land uses. (a) In order to ensure minimum disruption 
63.32 	of existing land uses, the commissioner's airport zoning standards and local airport zoning 
63.33 	ordinances or regulations adopted under this section must distinguish between the creation 
64.1 	or establishment of a use and the elimination of an existing use, and must avoid the 
64.2 	elimination, removal, or reclassification of existing uses to the extent consistent with 
64.3 	reasonable safety standards. The commissioner's standards must include criteria for 
64.4 	determining when an existing land use may constitute an airport hazard so severe that public 
64.5 	safety considerations outweigh the public interest in preventing disruption to that land use.
64.6 	(b) Airport zoning regulations that classify as a nonconforming use or require 
64.7 	nonconforming use classification with respect to any existing low-density structure or 
64.8 	existing isolated low-density building lots must be adopted under sections 360.061 to 
64.9 	360.074.
64.10 	(c) A local airport zoning authority may classify a land use described in paragraph (b) 
64.11 	as an airport hazard if the authority finds that the classification is justified by public safety 
64.12 	considerations and is consistent with the commissioner's airport zoning standards. Any land 
64.13 	use described in paragraph (b) that is classified as an airport hazard must be acquired, altered, 
64.14 	or removed at public expense.
64.15 	(d) This subdivision must not be construed to affect the classification of any land use 
64.16 	under any zoning ordinances or regulations not adopted under sections 360.061 to 360.074.

64.17 	Sec. 72. [360.0656] CUSTOM AIRPORT ZONING STANDARDS.
64.18 		Subdivision 1.Custom airport zoning standards; factors. (a) Notwithstanding section 
64.19 	360.0655, a municipality, county, or joint airport zoning board must provide notice to the 
64.20 	commissioner when the municipality, county, or joint airport zoning board intends to establish 
64.21 	and adopt custom airport zoning regulations under this section.
64.22 	(b) Airport zoning regulations submitted to the commissioner under this subdivision are 
64.23 	not subject to the commissioner's zoning regulations under section 360.0655 or Minnesota 
64.24 	Rules, part 8800.2400.
64.25 	(c) When developing and adopting custom airport zoning regulations under this section, 
64.26 	the municipality, county, or joint airport zoning board must include in the record a detailed 
64.27 	analysis that explains how the proposed custom airport zoning regulations addressed the 
64.28 	following factors to ensure a reasonable level of safety:
64.29 	(1) the location of the airport, the surrounding land uses, and the character of 
64.30 	neighborhoods in the vicinity of the airport, including:
64.31 	(i) the location of vulnerable populations, including schools, hospitals, and nursing 
64.32 	homes, in the airport hazard area;
65.1 	(ii) the location of land uses that attract large assemblies of people in the airport hazard 
65.2 	area;
65.3 	(iii) the availability of contiguous open spaces in the airport hazard area;
65.4 	(iv) the location of wildlife attractants in the airport hazard area;
65.5 	(v) airport ownership or control of the federal Runway Protection Zone and the 
65.6 	department's Clear Zone;
65.7 	(vi) land uses that create or cause interference with the operation of radio or electronic 
65.8 	facilities used by the airport or aircraft;
65.9 	(vii) land uses that make it difficult for pilots to distinguish between airport lights and 
65.10 	other lights, result in glare in the eyes of pilots using the airport, or impair visibility in the 
65.11 	vicinity of the airport;
65.12 	(viii) land uses that otherwise inhibit a pilot's ability to land, take off, or maneuver the 
65.13 	aircraft;
65.14 	(ix) airspace protection to prevent the creation of air navigation hazards in the airport 
65.15 	hazard area; and
65.16 	(x) the social and economic costs of restricting land uses;
65.17 	(2) the airport's type of operations and how the operations affect safety surrounding the 
65.18 	airport;
65.19 	(3) the accident rate at the airport compared to a statistically significant sample, including 
65.20 	an analysis of accident distribution based on the rate with a higher accident incidence;
65.21 	(4) the planned land uses within an airport hazard area, including any applicable platting, 
65.22 	zoning, comprehensive plan, or transportation plan; and
65.23 	(5) any other information relevant to safety or the airport.
65.24 		Subd. 2.Submission to commissioner; review. (a) Except as provided in section 
65.25 	360.0655, prior to adopting zoning regulations, the municipality, county, or joint airport 
65.26 	zoning board must submit its proposed regulations and the supporting record to the 
65.27 	commissioner for review. The commissioner must determine whether the proposed custom 
65.28 	airport zoning regulations and supporting record (1) evaluate the criteria under subdivision 
65.29 	1, and (2) provide a reasonable level of safety.
65.30 	(b) Notwithstanding section 15.99, the commissioner must examine the proposed 
65.31 	regulations within 90 days of receipt of the regulations and report to the municipality, county, 
66.1 	or joint airport zoning board the commissioner's approval or objections, if any. Failure to 
66.2 	respond within 90 days is deemed an approval. The commissioner may request additional 
66.3 	information from the municipality, county, or joint airport zoning board within the 90-day 
66.4 	review period.
66.5 	(c) If the commissioner objects on the grounds that the regulations do not provide a 
66.6 	reasonable level of safety, the municipality, county, or joint airport zoning board must 
66.7 	review, consider, and provide a detailed explanation demonstrating how it evaluated the 
66.8 	objections and what action it took or did not take in response to the objections. If the 
66.9 	municipality, county, or joint airport zoning board submits amended regulations after its 
66.10 	initial public hearing, the municipality, county, or joint airport zoning board must conduct 
66.11 	a second public hearing on the revisions and resubmit the revised proposed regulations to 
66.12 	the commissioner for review. The commissioner must examine the revised proposed 
66.13 	regulations within 90 days of receipt of the regulations. If the commissioner requests 
66.14 	additional information, the 90-day review period is tolled until satisfactory information is 
66.15 	received by the commissioner. Failure to respond within 90 days is deemed an approval.
66.16 	(d) If, after the second review period, the commissioner determines that the municipality, 
66.17 	county, or joint airport zoning board failed to submit proposed regulations that provide a 
66.18 	reasonable safety level, the commissioner must provide a final written decision to the 
66.19 	municipality, county, or joint airport zoning board.
66.20 	(e) A municipality, county, or joint airport zoning board is prohibited from adopting 
66.21 	custom regulations or taking other action until the proposed regulations are approved by 
66.22 	the commissioner.
66.23 	(f) If the commissioner approves the proposed regulations, the municipality, county, or 
66.24 	joint airport zoning board may adopt the regulations.
66.25 	(g) A copy of the adopted regulations must be filed with the county recorder in each 
66.26 	county that contains a zoned area subject to the regulations.
66.27 	(h) Substantive rights that existed and had been exercised prior to August 1, 2018, are 
66.28 	not affected by the filing of the regulations.

66.29 	Sec. 73. Minnesota Statutes 2016, section 360.066, subdivision 1, is amended to read:
66.30 		Subdivision 1.Reasonableness. Standards of the commissioner Zoning standards defining 
66.31 	airport hazard areas and the categories of uses permitted and airport zoning regulations 
66.32 	adopted under sections 360.011 to 360.076, shall must be reasonable, and none shall impose 
66.33 	a requirement or restriction which that is not reasonably necessary to effectuate the purposes 
67.1 	of sections 360.011 to 360.076. In determining what minimum airport zoning regulations 
67.2 	may be adopted, the commissioner and a local airport zoning authority shall consider, among 
67.3 	other things, the character of the flying operations expected to be conducted at the airport, 
67.4 	the location of the airport, the nature of the terrain within the airport hazard area, the existing 
67.5 	land uses and character of the neighborhood around the airport, the uses to which the property 
67.6 	to be zoned are planned and adaptable, and the social and economic costs of restricting land 
67.7 	uses versus the benefits derived from a strict application of the standards of the commissioner.

67.8 	Sec. 74. Minnesota Statutes 2016, section 360.067, is amended by adding a subdivision 
67.9 	to read:
67.10 		Subd. 5.Federal no hazard determination. (a) Notwithstanding subdivisions 1 and 2, 
67.11 	a municipality, county, or joint airport zoning board may include in its custom airport zoning 
67.12 	regulations adopted under section 360.0656 an option to permit construction of a structure, 
67.13 	an increase or alteration of the height of a structure, or the growth of an existing tree without 
67.14 	a variance from height restrictions if the Federal Aviation Administration has analyzed the 
67.15 	proposed construction, alteration, or growth under Code of Federal Regulations, title 14, 
67.16 	part 77, and has determined the proposed construction, alteration, or growth does not:
67.17 	(1) pose a hazard to air navigation;
67.18 	(2) require changes to airport or aircraft operations; or
67.19 	(3) require any mitigation conditions by the Federal Aviation Administration that cannot 
67.20 	be satisfied by the landowner.
67.21 	(b) A municipality, county, or joint airport zoning board that permits an exception to 
67.22 	height restrictions under this subdivision must require the applicant to file the Federal 
67.23 	Aviation Administration's no hazard determination with the applicable zoning administrator. 
67.24 	The applicant must obtain written approval of the zoning administrator before construction, 
67.25 	alteration, or growth may occur. Failure of the administrator to respond within 60 days to 
67.26 	a filing under this subdivision is deemed a denial. The Federal Aviation Administration's 
67.27 	no hazard determination does not apply to requests for variation from land use, density, or 
67.28 	any other requirement unrelated to the height of structures or the growth of trees.

67.29 	Sec. 75. Minnesota Statutes 2016, section 360.071, subdivision 2, is amended to read:
67.30 		Subd. 2.Membership. (a) Where a zoning board of appeals or adjustment already exists, 
67.31 	it may be appointed as the board of adjustment. Otherwise, the board of adjustment shall 
67.32 	consist of five members, each to be appointed for a term of three years by the authority 
68.1 	adopting the regulations and to be removable by the appointing authority for cause, upon 
68.2 	written charges and after public hearing. The length of initial appointments may be staggered.
68.3 	(b) In the case of a Metropolitan Airports Commission, five members shall be appointed 
68.4 	by the commission chair from the area in and for which the commission was created, any 
68.5 	of whom may be members of the commission. In the case of an airport owned or operated 
68.6 	by the state of Minnesota, the board of commissioners of the county, or counties, in which 
68.7 	the airport hazard area is located shall constitute the airport board of adjustment and shall 
68.8 	exercise the powers and duties of such board as provided herein.

68.9 	Sec. 76. Minnesota Statutes 2016, section 360.305, subdivision 6, is amended to read:
68.10 		Subd. 6.Zoning required. The commissioner shall must not expend money for planning 
68.11 	or land acquisition, or for the construction, improvement, or maintenance of airports, or for 
68.12 	air navigation facilities for an airport, unless the governmental unit municipality, county, 
68.13 	or joint airport zoning board involved has or is establishing a zoning authority for that 
68.14 	airport, and the authority has made a good-faith showing that it is in the process of and will 
68.15 	complete with due diligence, an airport zoning ordinance in accordance with sections 360.061
68.16 	to 360.074. The commissioner may provide funds to support airport safety projects that 
68.17 	maintain existing infrastructure, regardless of a zoning authority's efforts to complete a 
68.18 	zoning regulation. The commissioner shall must make maximum use of zoning and easements 
68.19 	to eliminate runway and other potential airport hazards rather than land acquisition in fee.

68.20 	Sec. 77. Minnesota Statutes 2016, section 394.22, is amended by adding a subdivision to 
68.21 	read:
68.22 		Subd. 1a.Airport safety zone. "Airport safety zone" means an area subject to land use 
68.23 	zoning controls adopted under sections 360.061 to 360.074 if the zoning controls regulate 
68.24 	(1) the size or location of buildings, or (2) the density of population.

68.25 	Sec. 78. Minnesota Statutes 2016, section 394.23, is amended to read:
68.26 	394.23 COMPREHENSIVE PLAN.
68.27 	The board has the power and authority to prepare and adopt by ordinance, a 
68.28 	comprehensive plan. A comprehensive plan or plans when adopted by ordinance must be 
68.29 	the basis for official controls adopted under the provisions of sections 394.21 to 394.37. 
68.30 	The commissioner of natural resources must provide the natural heritage data from the 
68.31 	county biological survey, if available, to each county for use in the comprehensive plan. 
68.32 	When adopting or updating the comprehensive plan, the board must, if the data is available 
69.1 	to the county, consider natural heritage data resulting from the county biological survey. In 
69.2 	a county that is not a greater than 80 percent area, as defined in section 103G.005, subdivision 
69.3 	10b, the board must consider adopting goals and objectives that will protect open space and 
69.4 	the environment. The board must consider the location and dimensions of airport safety 
69.5 	zones in any portion of the county, and of any airport improvements, identified in the airport's 
69.6 	most recent approved airport layout plan.

69.7 	Sec. 79. Minnesota Statutes 2016, section 394.231, is amended to read:
69.8 	394.231 COMPREHENSIVE PLANS IN GREATER MINNESOTA; OPEN SPACE.
69.9 	A county adopting or updating a comprehensive plan in a county outside the metropolitan 
69.10 	area as defined by section 473.121, subdivision 2, and that is not a greater than 80 percent 
69.11 	area, as defined in section 103G.005, subdivision 10b, shall consider adopting goals and 
69.12 	objectives for the preservation of agricultural, forest, wildlife, and open space land, and 
69.13 	minimizing development in sensitive shoreland areas. Within three years of updating the 
69.14 	comprehensive plan, the county shall consider adopting ordinances as part of the county's 
69.15 	official controls that encourage the implementation of the goals and objectives. The county 
69.16 	shall consider the following goals and objectives:
69.17 	(1) minimizing the fragmentation and development of agricultural, forest, wildlife, and 
69.18 	open space lands, including consideration of appropriate minimum lot sizes;
69.19 	(2) minimizing further development in sensitive shoreland areas;
69.20 	(3) minimizing development near wildlife management areas, scientific and natural 
69.21 	areas, and nature centers;
69.22 	(4) encouraging land uses in airport safety zones that are compatible with the safe 
69.23 	operation of the airport and the safety of people in the vicinity of the airport;
69.24 	(4) (5) identification of areas of preference for higher density, including consideration 
69.25 	of existing and necessary water and wastewater services, infrastructure, other services, and 
69.26 	to the extent feasible, encouraging full development of areas previously zoned for 
69.27 	nonagricultural uses;
69.28 	(5) (6) encouraging development close to places of employment, shopping centers, 
69.29 	schools, mass transit, and other public and private service centers;
69.30 	(6) (7) identification of areas where other developments are appropriate; and
69.31 	(7) (8) other goals and objectives a county may identify.

70.1 	Sec. 80. Minnesota Statutes 2016, section 394.25, subdivision 3, is amended to read:
70.2 		Subd. 3.In district zoning, maps. Within each such district zoning ordinances or maps 
70.3 	may also be adopted designating or limiting the location, height, width, bulk, type of 
70.4 	foundation, number of stories, size of, and the specific uses for which dwellings, buildings, 
70.5 	and structures may be erected or altered; the minimum and maximum size of yards, courts, 
70.6 	or other open spaces; setback from existing roads and highways and roads and highways 
70.7 	designated on an official map; protective measures necessary to protect the public interest 
70.8 	including but not limited to controls relating to appearance, signs, lighting, hours of operation 
70.9 	and other aesthetic performance characteristics including but not limited to noise, heat, 
70.10 	glare, vibrations and smoke; the area required to provide for off street loading and parking 
70.11 	facilities; heights of trees and structures near airports; and to avoid too great concentration 
70.12 	or scattering of the population. All such provisions shall be uniform for each class of land 
70.13 	or building throughout each district, but the provisions in one district may differ from those 
70.14 	in other districts. No provision may prohibit earth sheltered construction as defined in section 
70.15 	216C.06, subdivision 14, or manufactured homes built in conformance with sections 327.31
70.16 	to 327.35 that comply with all other zoning ordinances promulgated pursuant to this section.
70.17 	Airport safety zones must be included on maps that illustrate boundaries of zoning districts 
70.18 	and that are adopted as official controls.

70.19 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to maps 
70.20 	created or updated under this section on or after that date.

70.21 	Sec. 81. Minnesota Statutes 2016, section 462.352, is amended by adding a subdivision 
70.22 	to read:
70.23 		Subd. 1a.Airport safety zone. "Airport safety zone" has the meaning given in section 
70.24 	394.22, subdivision 1a.

70.25 	Sec. 82. Minnesota Statutes 2016, section 462.355, subdivision 1, is amended to read:
70.26 		Subdivision 1.Preparation and review. The planning agency shall prepare the 
70.27 	comprehensive municipal plan. In discharging this duty the planning agency shall consult 
70.28 	with and coordinate the planning activities of other departments and agencies of the 
70.29 	municipality to insure conformity with and to assist in the development of the comprehensive 
70.30 	municipal plan. In its planning activities the planning agency shall take due cognizance of 
70.31 	the planning activities of adjacent units of government and other affected public agencies. 
70.32 	The planning agency shall periodically review the plan and recommend amendments 
70.33 	whenever necessary. When preparing or recommending amendments to the comprehensive 
71.1 	plan, the planning agency of a municipality located within a county that is not a greater than 
71.2 	80 percent area, as defined in section 103G.005, subdivision 10b, must consider adopting 
71.3 	goals and objectives that will protect open space and the environment. When preparing or 
71.4 	recommending amendments to the comprehensive plan, the planning agency must consider 
71.5 	(1) the location and dimensions of airport safety zones in any portion of the municipality, 
71.6 	and (2) any airport improvements identified in the airport's most recent approved airport 
71.7 	layout plan.

71.8 	Sec. 83. Minnesota Statutes 2016, section 462.357, is amended by adding a subdivision 
71.9 	to read:
71.10 		Subd. 1i.Airport safety zones on zoning maps. Airport safety zones must be included 
71.11 	on maps that illustrate boundaries of zoning districts and that are adopted as official controls.

71.12 	EFFECTIVE DATE. This section is effective August 1, 2018, and applies to maps 
71.13 	created or updated under this section on or after that date.

71.14 	Sec. 84. Minnesota Statutes 2016, section 462.357, subdivision 9, is amended to read:
71.15 		Subd. 9.Development goals and objectives. In adopting official controls after July 1, 
71.16 	2008, in a municipality outside the metropolitan area, as defined by section 473.121, 
71.17 	subdivision 2, the municipality shall consider restricting new residential, commercial, and 
71.18 	industrial development so that the new development takes place in areas subject to the 
71.19 	following goals and objectives:
71.20 	(1) minimizing the fragmentation and development of agricultural, forest, wildlife, and 
71.21 	open space lands, including consideration of appropriate minimum lot sizes;
71.22 	(2) minimizing further development in sensitive shoreland areas;
71.23 	(3) minimizing development near wildlife management areas, scientific and natural 
71.24 	areas, and nature centers;
71.25 	(4) encouraging land uses in airport safety zones that are compatible with the safe 
71.26 	operation of the airport and the safety of people in the vicinity of the airport;
71.27 	(4) (5) identification of areas of preference for higher density, including consideration 
71.28 	of existing and necessary water and wastewater services, infrastructure, other services, and 
71.29 	to the extent feasible, encouraging full development of areas previously zoned for 
71.30 	nonagricultural uses;
72.1 	(5) (6) encouraging development close to places of employment, shopping centers, 
72.2 	schools, mass transit, and other public and private service centers;
72.3 	(6) (7) identification of areas where other developments are appropriate; and
72.4 	(7) (8) other goals and objectives a municipality may identify.

72.5 	Sec. 85. Minnesota Statutes 2016, section 473.13, is amended by adding a subdivision to 
72.6 	read:
72.7 		Subd. 1d.Budget amendments. In conjunction with the adoption of any amendment 
72.8 	to a budget under subdivision 1, the council must submit a summary of the budget changes 
72.9 	and a copy of the amended budget to the members and staff of the legislative committees 
72.10 	with jurisdiction over transportation policy and finance and to the Legislative Commission 
72.11 	on Metropolitan Government.

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

72.15 	Sec. 86. Minnesota Statutes 2016, section 473.13, is amended by adding a subdivision to 
72.16 	read:
72.17 		Subd. 6.Overview of revenues and expenditures; forecast. (a) In cooperation with 
72.18 	the Department of Management and Budget and as required by section 16A.103, in February 
72.19 	and November of each year the council must prepare a financial overview and forecast of 
72.20 	revenues and expenditures for the transportation components of the council's budget.
72.21 	(b) At a minimum, the financial overview and forecast must identify:
72.22 	(1) actual revenues, expenditures, transfers, reserves, and balances for each of the previous 
72.23 	four budget years;
72.24 	(2) budgeted and forecasted revenues, expenditures, transfers, reserves, and balances 
72.25 	for each year within the state forecast period; and
72.26 	(3) a comparison of the information under clause (2) to the prior forecast, including any 
72.27 	changes made.
72.28 	(c) The information under paragraph (b), clauses (1) and (2), must include:
72.29 	(1) a breakdown for each transportation operating budget category established by the 
72.30 	council, including but not limited to bus, light rail transit, commuter rail, planning, special 
73.1 	transportation service under section 473.386, and assistance to replacement service providers 
73.2 	under section 473.388;
73.3 	(2) data for both transportation operating and capital expenditures; and
73.4 	(3) fund balances for each replacement service provider under section 473.388.
73.5 	(d) The financial overview and forecast must summarize reserve policies, identify the 
73.6 	methodology for cost allocation, and review revenue assumptions and variables affecting 
73.7 	the assumptions.
73.8 	(e) The council must review the financial overview and forecast information with the 
73.9 	chairs, ranking minority members, and staff of the legislative committees with jurisdiction 
73.10 	over finance, ways and means, and transportation finance no later than two weeks following 
73.11 	the release of the forecast.

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

73.15 	Sec. 87. Minnesota Statutes 2016, section 473.386, subdivision 3, is amended to read:
73.16 		Subd. 3.Duties of council. In implementing the special transportation service, the council 
73.17 	shall:
73.18 	(a) encourage participation in the service by public, private, and private nonprofit 
73.19 	providers of special transportation currently receiving capital or operating assistance from 
73.20 	a public agency;
73.21 	(b) when feasible and cost-efficient, contract with public, private, and private nonprofit 
73.22 	providers that have demonstrated their ability to effectively provide service at a reasonable 
73.23 	cost;
73.24 	(c) encourage individuals using special transportation to use the type of service most 
73.25 	appropriate to their particular needs;
73.26 	(d) encourage shared rides to the greatest extent practicable;
73.27 	(e) encourage public agencies that provide transportation to eligible individuals as a 
73.28 	component of human services and educational programs to coordinate with this service and 
73.29 	to allow reimbursement for transportation provided through the service at rates that reflect 
73.30 	the public cost of providing that transportation;
74.1 	(f) establish criteria to be used in determining individual eligibility for special 
74.2 	transportation services;
74.3 	(g) consult with the Transportation Accessibility Advisory Committee in a timely manner 
74.4 	before changes are made in the provision of special transportation services;
74.5 	(h) provide for effective administration and enforcement of council policies and standards; 
74.6 	and
74.7 	(i) ensure that, taken as a whole including contracts with public, private, and private 
74.8 	nonprofit providers, the geographic coverage area of the special transportation service is 
74.9 	continuous within the boundaries of the transit taxing district, as defined as of March 1, 
74.10 	2006, in section 473.446, subdivision 2, and any area added to the transit taxing district 
74.11 	under section 473.4461 that received capital improvements financed in part by the Minnesota 
74.12 	Urban Partnership Agreement (UPA) under the United States Department of Transportation 
74.13 	UPA program.

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

74.16 	Sec. 88. Minnesota Statutes 2016, section 473.386, is amended by adding a subdivision 
74.17 	to read:
74.18 		Subd. 9.Data practices. (a) For purposes of administering this section, and only with 
74.19 	the consent of the data subject, the commissioner of human services and the Metropolitan 
74.20 	Council may share the following private data on individuals eligible for special transportation 
74.21 	services:
74.22 	(1) name;
74.23 	(2) date of birth;
74.24 	(3) residential address; and
74.25 	(4) program eligibility status with expiration date, to inform the other party of program 
74.26 	eligibility.
74.27 	(b) The commissioner of human services and the Metropolitan Council must provide 
74.28 	notice regarding data sharing to each individual applying for or renewing eligibility to use 
74.29 	special transportation services. The notice must seek consent to engage in data sharing under 
74.30 	paragraph (a), and must state how and for what purposes the individual's private data will 
74.31 	be shared between the commissioner of human services and the Metropolitan Council. A 
75.1 	consent to engage in data sharing is effective until the individual's eligibility expires, but 
75.2 	may be renewed if the individual applies to renew eligibility.

75.3 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
75.4 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
75.5 	Scott, and Washington. Within 60 days of this section's effective date, the commissioner 
75.6 	of human services and the Metropolitan Council must provide notice regarding data sharing 
75.7 	to each individual who is currently receiving special transportation services under Minnesota 
75.8 	Statutes, section 473.386. The notice must provide an opportunity to opt out of data sharing 
75.9 	under paragraph (a) of this section, and must state how and for what purposes the individual's 
75.10 	private data will be shared between the commissioner of human services and the Metropolitan 
75.11 	Council. An individual who is currently receiving special transportation services on this 
75.12 	section's effective date is presumed to have consented to data sharing under paragraph (a) 
75.13 	unless, within 60 days of the dissemination of the notice, the individual appropriately informs 
75.14 	the commissioner of human services or the Metropolitan Council that the individual opts 
75.15 	out of data sharing.

75.16 	Sec. 89. Minnesota Statutes 2017 Supplement, section 473.4051, subdivision 2, is amended 
75.17 	to read:
75.18 		Subd. 2.Operating costs. (a) After operating revenue and federal money have been 
75.19 	used to pay for light rail transit operations, 50 percent of the remaining operating costs must 
75.20 	be paid by the state.
75.21 	(b) Notwithstanding paragraph (a), all operating and ongoing capital maintenance costs 
75.22 	must be paid from nonstate sources for a segment of a light rail transit line or line extension 
75.23 	project that formally entered the engineering phase of the Federal Transit Administration's 
75.24 	"New Starts" capital investment grant program between August 1, 2016, and December 31, 
75.25 	2016.
75.26 	(c) For purposes of this subdivision, operating costs consist of the costs associated with 
75.27 	light rail system daily operations and the maintenance costs associated with keeping light 
75.28 	rail services and facilities operating. Operating costs do not include costs incurred to construct 
75.29 	new buildings or facilities, purchase new vehicles, or make technology improvements.

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

76.1 	Sec. 90. Minnesota Statutes 2016, section 473.4051, subdivision 3, is amended to read:
76.2 		Subd. 3.Capital costs. State money may must not be used to pay more than ten percent 
76.3 	of for the total capital cost of a light rail transit project.

76.4 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
76.5 	final enactment for appropriations encumbered on or after that date and applies in the 
76.6 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

76.7 	Sec. 91. Minnesota Statutes 2016, section 574.26, subdivision 1a, is amended to read:
76.8 		Subd. 1a.Exemptions: certain manufacturers; commissioner of transportation; 
76.9 	road maintenance. (a) Sections 574.26 to 574.32 do not apply to a manufacturer of public 
76.10 	transit buses that manufactures at least 100 public transit buses in a calendar year. For 
76.11 	purposes of this section, "public transit bus" means a motor vehicle designed to transport 
76.12 	people, with a design capacity for carrying more than 40 passengers, including the driver. 
76.13 	The term "public transit bus" does not include a school bus, as defined in section 169.011, 
76.14 	subdivision 71.
76.15 	(b) At the discretion of the commissioner of transportation, sections 574.26 to 574.32
76.16 	do not apply to any projects of the Department of Transportation (1) costing less than the 
76.17 	amount in section 471.345, subdivision 3, or (2) involving the permanent or semipermanent 
76.18 	installation of heavy machinery, fixtures, or other capital equipment to be used primarily 
76.19 	for maintenance or repair, or (3) awarded under section 161.32, subdivision 2.
76.20 	(c) Sections 574.26 to 574.32 do not apply to contracts for snow removal, ice removal, 
76.21 	grading, or other similar routine road maintenance on town roads.

76.22 	Sec. 92. Laws 2014, chapter 312, article 11, section 38, subdivision 5, is amended to read:
76.23 		Subd. 5.Pilot program evaluation. In coordination with the city, the commissioner of 
76.24 	transportation shall evaluate effectiveness of the pilot program under this section, which 
76.25 	must include analysis of traffic safety impacts, utility to motorists and tourists, costs and 
76.26 	expenditures, extent of community support, and pilot program termination or continuation. 
76.27 	By January 15, 2021 2024, the commissioner shall submit a report on the evaluation to the 
76.28 	chairs and ranking minority members and staff of the legislative committees with jurisdiction 
76.29 	over transportation policy and finance.

76.30 	Sec. 93. Laws 2014, chapter 312, article 11, section 38, subdivision 6, is amended to read:
76.31 		Subd. 6.Expiration. The pilot program under this section expires January 1, 2022 2025.

77.1 	Sec. 94. LEGISLATIVE ROUTE NO. 222 REMOVED.
 77.2 	(a) Minnesota Statutes, section 161.115, subdivision 153, is repealed effective the day 
77.3 	after the commissioner of transportation receives a copy of the agreement between the 
77.4 	commissioner and the governing body of Red Lake County to transfer jurisdiction of 
77.5 	Legislative Route No. 222 and after the commissioner notifies the revisor of statutes under 
77.6 	paragraph (b).
77.7 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
77.8 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
77.9 	or in writing that the conditions required to transfer the route have been satisfied.

77.10 	Sec. 95. LEGISLATIVE ROUTE NO. 253 REMOVED.
 77.11 	(a) Minnesota Statutes, section 161.115, subdivision 184, is repealed effective the day 
77.12 	after the commissioner of transportation receives a copy of the agreement between the 
77.13 	commissioner and the governing body of Faribault County to transfer jurisdiction of 
77.14 	Legislative Route No. 253 and after the commissioner notifies the revisor of statutes under 
77.15 	paragraph (b).
77.16 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
77.17 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
77.18 	or in writing that the conditions required to transfer the route have been satisfied.

77.19 	Sec. 96. LEGISLATIVE ROUTE NO. 254 REMOVED.
 77.20 	(a) Minnesota Statutes, section 161.115, subdivision 185, is repealed effective the day 
77.21 	after the commissioner of transportation receives a copy of the agreement between the 
77.22 	commissioner and the governing body of Faribault County to transfer jurisdiction of 
77.23 	Legislative Route No. 254 and after the commissioner notifies the revisor of statutes under 
77.24 	paragraph (b).
77.25 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
77.26 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
77.27 	or in writing that the conditions required to transfer the route have been satisfied.

77.28 	Sec. 97. LEGISLATIVE ROUTE NO. 277 REMOVED.
 77.29 	(a) Minnesota Statutes, section 161.115, subdivision 208, is repealed effective the day 
77.30 	after the commissioner of transportation receives a copy of the agreement between the 
77.31 	commissioner and the governing body of Chippewa County to transfer jurisdiction of 
78.1 	Legislative Route No. 277 and after the commissioner notifies the revisor of statutes under 
78.2 	paragraph (b).
78.3 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
78.4 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
78.5 	or in writing that the conditions required to transfer the route have been satisfied.

78.6 	Sec. 98. LEGISLATIVE ROUTE NO. 298 REMOVED.
 78.7 	(a) Minnesota Statutes, section 161.115, subdivision 229, is repealed effective the day 
78.8 	after the commissioner of transportation receives a copy of the agreement between the 
78.9 	commissioner and the governing body of the city of Faribault to transfer jurisdiction of 
78.10 	Legislative Route No. 298 and after the commissioner notifies the revisor of statutes under 
78.11 	paragraph (b).
78.12 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
78.13 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
78.14 	or in writing that the conditions required to transfer the route have been satisfied.

78.15 	Sec. 99. LEGISLATIVE ROUTE NO. 299 REMOVED.
 78.16 	(a) Minnesota Statutes, section 161.115, subdivision 230, is repealed effective the day 
78.17 	after the commissioner of transportation receives a copy of the agreement between the 
78.18 	commissioner and the governing body of the city of Faribault to transfer jurisdiction of 
78.19 	Legislative Route No. 299 and after the commissioner notifies the revisor of statutes under 
78.20 	paragraph (b).
78.21 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
78.22 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
78.23 	or in writing that the conditions required to transfer the route have been satisfied.

78.24 	Sec. 100. LEGISLATIVE ROUTE NO. 323 REMOVED.
 78.25 	(a) Minnesota Statutes, section 161.115, subdivision 254, is repealed effective the day 
78.26 	after the commissioner of transportation receives a copy of the agreement between the 
78.27 	commissioner and the governing body of the city of Faribault to transfer jurisdiction of 
78.28 	Legislative Route No. 323 and after the commissioner notifies the revisor of statutes under 
78.29 	paragraph (b).
79.1 	(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota 
79.2 	Statutes when the commissioner of transportation sends notice to the revisor electronically 
79.3 	or in writing that the conditions required to transfer the route have been satisfied.

79.4 	Sec. 101. DEPARTMENT OF TRANSPORTATION LOAN CONVERSION AND 
79.5 	LIEN RELEASE.
 79.6 	The commissioner of transportation must (1) convert to a grant the remaining balance 
79.7 	on Minnesota Department of Transportation Contract No. 1000714, originally executed as 
79.8 	of June 1, 2015, with Minnesota Commercial Railway Company; (2) cancel all future 
79.9 	payments under the contract; (3) release liens on the locomotives designated as MNNR 49 
79.10 	and MNNR 84; and (4) perform the appropriate filing. The commissioner is prohibited from 
79.11 	requiring or accepting additional payments under the contract as of the effective date of this 
79.12 	section. Notwithstanding the loan conversion and payment cancellation under this section, 
79.13 	all other terms and conditions under Contract No. 1000714 remain effective for the duration 
79.14 	of the period specified in the contract.

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

79.16 	Sec. 102. NORTHSTAR CORRIDOR EXTENSION; NEGOTIATIONS.
 79.17 	The Department of Transportation must contact Burlington Northern Santa Fe Railway 
79.18 	(BNSF) to negotiate an extension of the Northstar Corridor between Big Lake and St. Cloud. 
79.19 	Negotiations under this section are subject to the following conditions:
79.20 	(1) the Northstar Corridor will add at least one morning round trip departure between 
79.21 	the St. Cloud Amtrak Depot and Big Lake Station with continuing service to Target Station 
79.22 	each weekday, plus one evening round trip between Big Lake Station and St. Cloud Amtrak 
79.23 	Depot that must begin at Target Station, with the departure and arrival times set so that 
79.24 	approximately ten or more hours elapse between the morning departure and evening return 
79.25 	each day for both round trips. The Department of Transportation may also negotiate weekend 
79.26 	departures and arrivals between St. Cloud and Target Station;
79.27 	(2) the Department of Transportation may negotiate for fewer round trip departures from 
79.28 	Big Lake to Target Station each weekday, and fewer round trip departures on weekends;
79.29 	(3) BNSF must continue to crew and dispatch all trains and provide other track-related 
79.30 	services;
79.31 	(4) the St. Cloud Metropolitan Transit Commission (MTC) must be responsible for fare 
79.32 	collection in St. Cloud and must negotiate with Amtrak for using the Amtrak station. The 
80.1 	MTC must negotiate an agreement with the Metropolitan Council, which is subject to 
80.2 	approval by the city of St. Cloud, regarding the sharing of revenues and expenses related 
80.3 	to the Amtrak Depot, fare collection, and advertising. The MTC, city of St. Cloud, and 
80.4 	Stearns, Benton, and Sherburne Counties are prohibited from entering into agreements with 
80.5 	the Metropolitan Council on any subject other than the operation of the Northstar Corridor;
80.6 	(5) the Department of Transportation is prohibited from committing to spend any state 
80.7 	funds on capital expenditures;
80.8 	(6) the Department of Transportation is prohibited from committing to spend any more 
80.9 	state funds on operating costs than the total sum it and the Metropolitan Council have 
80.10 	budgeted for the Northstar Corridor; and
80.11 	(7) the Department of Transportation may negotiate with the federal government, counties 
80.12 	and cities, or the Northstar Corridor Development Authority to provide additional funding 
80.13 	for services necessary to extend the Northstar Corridor.

80.14 	Sec. 103. NORTHSTAR COMMUTER RAIL OPERATING COSTS; EXCEPTION.
 80.15 	(a) Minnesota Statutes, section 398A.10, subdivision 2, does not apply for reserve funds 
80.16 	available to the Anoka County Regional Railroad Authority as of June 30, 2018, that are 
80.17 	used to pay operating and maintenance costs of Northstar Commuter Rail.
80.18 	(b) This section expires on January 1, 2021.

80.19 	Sec. 104. MARKED INTERSTATE HIGHWAY 35 SIGNS.
 80.20 	The commissioner of transportation must erect signs that identify and direct motorists 
80.21 	to the campuses of Minnesota State Academy for the Deaf and Minnesota State Academy 
80.22 	for the Blind under Minnesota Statutes, sections 125A.61 to 125A.73. At least one sign in 
80.23 	each direction of travel must be placed on marked Interstate Highway 35, located as near 
80.24 	as practical to exits that reasonably access the campuses. The commissioner is prohibited 
80.25 	from removing signs for the campuses posted on marked Trunk Highway 60.

80.26 	Sec. 105. COMMERCIAL DRIVER'S LICENSE FEDERAL REGULATION 
80.27 	WAIVER REQUEST.
 80.28 	The commissioner of public safety must apply to the Federal Motor Carrier Safety 
80.29 	Administration for a waiver from the federal regulation that requires a person to have a 
80.30 	passenger endorsement to drive a bus with no passengers for the sole purpose of delivering 
80.31 	the bus to the purchaser.

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

81.2 	Sec. 106. REVISOR INSTRUCTIONS.
 81.3 	(a) The revisor of statutes shall renumber Minnesota Statutes, section 160.02, subdivision 
81.4 	27a, as Minnesota Statutes, section 169.011, subdivision 73a. The revisor shall correct any 
81.5 	cross-references made necessary by this renumbering.
81.6 	(b) The revisor of statutes shall change the term "special revenue fund" to "driver and 
81.7 	vehicle services fund" wherever the term appears in Minnesota Statutes when referring to 
81.8 	the accounts under Minnesota Statutes, section 299A.705.

81.9 	Sec. 107.  REPEALER.
 81.10 	(a) Minnesota Statutes 2016, section 168.013, subdivision 21, is repealed.
81.11 	(b) Minnesota Statutes 2016, section 221.161, subdivisions 2, 3, and 4, are repealed.
81.12 	(c) Minnesota Statutes 2016, sections 360.063, subdivision 4; 360.065, subdivision 2; 
81.13 	and 360.066, subdivisions 1a and 1b, are repealed.
81.14 	(d) Minnesota Statutes 2016, sections 222.47; 222.50, subdivisions 1 and 7; and 222.51,
81.15 	are repealed.
81.16 	(e) Minnesota Statutes 2017 Supplement, sections 222.49; and 222.50, subdivision 6,
81.17 	are repealed.

81.18 	Sec. 108. EFFECTIVE DATE; APPLICATION.
 81.19 	(a) Sections 63 to 84 and section 107, paragraph (c), are effective August 1, 2018, and 
81.20 	apply to airport sponsors that make or plan to make changes to runway lengths or 
81.21 	configurations on or after that date.
81.22 	(b) Sections 63 to 84 and section 107, paragraph (c), do not apply to airports that (1) 
81.23 	have airport safety zoning ordinances approved by this commissioner in effect on August 
81.24 	1, 2018; (2) have not made and are not planning to make changes to runway lengths or 
81.25 	configurations; and (3) are not required to update airport safety zoning ordinances.

APPENDIX 

Repealed Minnesota Statutes: H4160-1 

168.013 VEHICLE REGISTRATION TAXES.Subd. 21.Technology surcharge. 
For every vehicle registration renewal required under this chapter, the commissioner shall collect a surcharge of: (1) $1.75 until June 30, 2012; and (2) $1 from July 1, 2012, to June 30, 2016. Surcharges collected under this subdivision must be credited to the driver and vehicle services technology account in the special revenue fund under section 299A.705. 

221.161 SCHEDULE OF RATES AND CHARGES.Subd. 2.Hearing upon complaint. 
Tariffs, supplements, and reissues must be prepared and filed in accordance with rules of the commissioner. Rates or charges, including pickup charges named therein, are subject to complaint to the commissioner by an interested party. The commissioner, after investigation by the department, by order on not less than ten days' notice, may assign the complaint for hearing, and if at the hearing, the complainant submits facts and evidence sufficient to establish proof that the rates or charges complained of are excessive or noncompensatory, the commissioner may order the rates or charges canceled, and require the filing of alternative and reasonable rates and charges, the reasonable level of which at that time must be indicated by the commissioner in the order. 

Subd. 3.Hearing upon petition by another carrier. 
Upon the filing of a tariff or subsequent supplement or reissue, any other carrier has the right to petition the commissioner to suspend it from taking effect until opportunity is had for a hearing on the reasonableness of the rates or charges, and the commissioner may suspend the rates or charges if in its judgment the rates or charges complained of are so unreasonably low as to create destructive competitive practices among or jeopardize the economic position of competing carriers. In determining whether the rates or charges are excessive or noncompensatory, the commissioner shall include in consideration, among other things, the reasonable cost of the services rendered for the transportation, including a reasonable return on the money invested in the business and an adequate sum for maintenance and depreciation of the property used. 

Subd. 4.Hearing on merits of rates and charges. 
The commissioner, (1) after a suspension and hearing upon a schedule of rates and charges, or upon complaint, or upon the commissioner's own initiative, either in extension of an existing complaint or without a complaint whatever, (2) after department investigation and petition, (3) upon notice to the permit carrier or tariff agent proposing, maintaining, or charging a schedule of rates and charges on a single group of related commodities, and (4) upon notice to the users of the service and competitive carriers by motor vehicle and rail, may assign for hearing the schedule of rates and charges proposed, maintained, or charged by any or all permit carriers. Upon a finding, after a hearing, that the schedule of rates and charges are unjust or unreasonable or unjustly discriminatory or unduly preferential or prejudicial or otherwise in violation of this section, the commissioner may prescribe minimum rates and charges and the rates, rules, and practices thereafter to be maintained and applied by the permit carrier or tariff agent. In the hearing the burden of proof is upon the permit carrier or tariff agent whose schedules of rates and charges are under investigation to show that the schedules are not below a minimum reasonable level or are not noncompensatory. 

222.47 CITATION.
Sections 222.46 to 222.54 may be cited as the "Minnesota Rail Service Improvement Act." 

222.49 RAIL SERVICE IMPROVEMENT ACCOUNT; APPROPRIATION.
The rail service improvement account is created in the special revenue fund in the state treasury. The account consists of funds as provided by law, and any other money donated, allotted, transferred, or otherwise provided to the account, excluding bond proceeds as authorized by article XI, section 5, clause (i), of the Minnesota Constitution. All money so deposited is appropriated to the department for expenditure for rail service improvement in accordance with applicable state and federal law. This appropriation shall not lapse but shall be available until the purpose for which it was appropriated has been accomplished. 

222.50 RAIL SERVICE IMPROVEMENT PROGRAM.Subdivision 1.Creation. 
There is created the rail service improvement program to provide assistance for improvement of rail service in the state. 

Subd. 6.Grants. 
The commissioner may approve grants from the rail service improvement account for freight rail service improvements that support economic development. 

Subd. 7.Expenditures. 
(a) The commissioner may expend money from the rail service improvement account for the following purposes: 

(1) to make transfers as provided under section 222.57 or to pay interest adjustments on loans guaranteed under the state rail user and rail carrier loan guarantee program; 

(2) to pay a portion of the costs of capital improvement projects designed to improve rail service of a rail user or a rail carrier; 

(3) to pay a portion of the costs of rehabilitation projects designed to improve rail service of a rail user or a rail carrier; 

(4) to acquire, maintain, manage, and dispose of railroad right-of-way pursuant to the state rail bank program; 

(5) to provide for aerial photography survey of proposed and abandoned railroad tracks for the purpose of recording and reestablishing by analytical triangulation the existing alignment of the inplace track; 

(6) to pay a portion of the costs of acquiring a rail line by a regional railroad authority established pursuant to chapter 398A; 

(7) to pay the state matching portion of federal grants for rail-highway grade crossing improvement projects; 

(8) for expenditures made before July 1, 2017, to pay the state matching portion of grants under the federal Transportation Investment Generating Economic Recovery (TIGER) program of the United States Department of Transportation; 

(9) to fund rail planning studies; and 

(10) to pay a portion of the costs of capital improvement projects designed to improve capacity or safety at rail yards. 

(b) All money derived by the commissioner from the disposition of railroad right-of-way or of any other property acquired pursuant to sections 222.46 to 222.62 shall be deposited in the rail service improvement account. 

222.51 PARTICIPATION BY POLITICAL SUBDIVISION.
The governing body of any political subdivision of the state may, with the approval of the commissioner, appropriate money for rail service improvement and may participate in the state rail service improvement program and federal rail programs. 

360.063 AIRPORT ZONING; AUTHORITY, PROCEDURE.Subd. 4.Airport approach. 
The commissioner may recommend an airport approach plan for each publicly owned airport in the state and for each privately owned airport of the publicly owned class and from time to time recommend revisions of the plan. A plan shall indicate the circumstances in which structures or trees are or would be airport hazards, the airport hazard area, and what measures should be taken to eliminate airport hazards. The commissioner shall prescribe airport approach and turning standards for airports of various classes, and airport zoning regulations adopted by a municipality, county, or joint airport zoning board shall conform to the standards, except as provided in sections 360.065 and 360.066. 

360.065 AIRPORT ZONING; ADOPTION AND APPROVAL OF PROPOSED REGULATIONS.Subd. 2.Regulations submitted to commissioner. 
Prior to adopting zoning regulations for an airport hazard area under sections 360.011 to 360.076, the municipality, county, or joint airport zoning board which is to adopt the regulations shall submit its proposed regulations to the commissioner in order that the commissioner may determine whether it conforms to the standards prescribed by the commissioner. The commissioner shall immediately examine the proposed regulations and report to the municipality, county, or joint airport zoning board the commissioner's approval, or objections, if any. If objections are made by the commissioner on the ground that the regulations do not conform to the standards prescribed by the commissioner for the class of airport involved, the municipality, county, or joint zoning board shall make amendments as are necessary to meet the objections unless it demonstrates that the social and economic costs of restricting land uses in accordance with the standards outweigh the benefits of a strict application of the standards. The governing body of the municipality or county or the joint airport zoning board shall not adopt the regulations or take other action until the proposed regulations are approved by the commissioner. The commissioner may approve local zoning ordinances that are more stringent than the standards. A copy of the regulations as adopted shall be filed with the county recorder in each county in which the zoned area is located. 

Substantive rights existing prior to the passage of this subdivision and previously exercised are not affected by the filing of the regulations. 

360.066 AIRPORT ZONING; MINIMUM STANDARDS, LAND USES.Subd. 1a.Protection of existing neighborhood. 
(a) In order to ensure the minimum disruption of existing land uses, particularly established residential neighborhoods in built-up urban areas, the airport zoning standards of the commissioner and the local airport zoning ordinances or regulations adopted under sections 360.061 to 360.074 shall distinguish between the creation or establishment of a use and the elimination of an existing use, and shall avoid the elimination, removal, or reclassification of existing uses to the extent consistent with reasonable standards of safety. The standards of the commissioner shall include criteria for determining when an existing land use may constitute an airport hazard so severe that considerations of public safety outweigh the public interest in preventing disruption to that land use. 

(b) No airport zoning standards or local airport zoning ordinances or regulations shall be adopted pursuant to sections 360.061 to 360.074 that classify as a nonconforming use or require such classification with respect to any low-density residential structure or isolated low-density residential building lots existing on January 1, 1978 in an established residential neighborhood. 

(c) A local airport zoning authority may classify a land use described in paragraph (b) as an airport hazard if that authority finds that this classification is justified by considerations of public safety and is consistent with the airport zoning standards of the commissioner. Any land use described in paragraph (b) which is classified as an airport hazard shall be acquired, altered, or removed at public expense. 

(d) The provisions of this subdivision shall not be construed to affect the classification of any land use under any zoning ordinances or regulations not adopted pursuant to sections 360.061 to 360.074. 

Subd. 1b.Amendment of standards. 
Within nine months after March 29, 1978, the commissioner shall amend the standards defining airport hazard areas and categories of uses permitted therein to conform with the requirements of Laws 1978, chapter 654. Until the commissioner adopts amended standards as required by this subdivision the unamended standards, insofar as they require classification of any residential property as a nonconforming use contrary to the provisions of subdivision 1a, paragraph (b), shall be without force or effect.