HF 2438

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/17/2025 03:00 p.m.

A bill for an act
relating to transportation; establishing a budget for transportation; appropriating
money for transportation purposes, including Department of Transportation,
Department of Public Safety, and Metropolitan Council activities; amending
Minnesota Statutes 2024, sections 168.27, subdivisions 8, 11, 16; 168.33,
subdivision 7; 168A.10, by adding a subdivision; 169.14, subdivision 1a; 169.686,
subdivision 1; 171.05, subdivision 1; 171.06, by adding a subdivision; 171.061,
subdivision 4; 171.306, subdivision 8; 174.02, by adding a subdivision; 174.38,
subdivision 4; 299A.01, by adding a subdivision; 360.511, by adding a subdivision;
360.531, subdivision 2; 360.55, subdivisions 4, 4a, 9, by adding subdivisions;
360.653; 473.408, by adding a subdivision; 473.4465, by adding a subdivision;
Laws 2021, First Special Session chapter 5, article 1, section 2, subdivision 2, as
amended; Laws 2021, First Special Session chapter 14, article 11, section 45; Laws
2023, chapter 60, article 10, section 9; Laws 2023, chapter 68, article 1, section
2, subdivisions 2, 3; Laws 2024, chapter 127, article 1, section 2, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin TRANSPORTATION APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the trunk highway
fund, or another named fund, and are available for the fiscal years indicated for each purpose.
Amounts for "Total Appropriation" and sums shown in the corresponding columns marked
"Appropriations by Fund" are summary only and do not have legal effect. Unless specified
otherwise, the amounts in fiscal year 2027 under "Appropriations by Fund" show the base
within the meaning of Minnesota Statutes, section 16A.11, subdivision 3, by fund. The
figures "2026" and "2027" used in this article mean that the appropriations listed under them
are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. "Each
year" is each of fiscal years 2026 and 2027. "The biennium" is fiscal years 2026 and 2027.
"C.S.A.H." is the county state-aid highway fund. "M.S.A.S." is the municipal state-aid street
fund. "H.U.T.D." is the highway user tax distribution fund. "Staff" means those employees
who are identified in any of the following roles for the legislative committees: committee
administrator, committee legislative assistant, caucus research, fiscal analysis, counsel, or
nonpartisan research.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin DEPARTMENT OF TRANSPORTATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 4,879,471,000 new text end

new text begin $ new text end

new text begin 3,958,200,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 39,068,000 new text end	new text begin 39,218,000 new text end
new text begin Airports new text end	new text begin 28,018,000 new text end	new text begin 28,018,000 new text end
new text begin C.S.A.H. new text end	new text begin 1,099,805,000 new text end	new text begin 1,123,821,000 new text end
new text begin M.S.A.S. new text end	new text begin 278,780,000 new text end	new text begin 283,002,000 new text end
new text begin Trunk Highway new text end	new text begin 3,433,800,000 new text end	new text begin 2,484,141,000 new text end

new text begin The appropriations in this section are to the
commissioner of transportation.
new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Multimodal Systems new text end

new text begin (a) Aeronautics new text end
new text begin (1) Airport Development and Assistance new text end				new text begin 19,623,000 new text end		new text begin 19,623,000 new text end

new text begin This appropriation is from the state airports
fund and must be spent according to
Minnesota Statutes, section 360.305,
subdivision 4.
new text end

new text begin Notwithstanding Minnesota Statutes, section
16A.28, subdivision 6, this appropriation is
available for five years after the year of the
appropriation. If the appropriation for either
year is insufficient, the appropriation for the
other year is available for it.
new text end

new text begin If the commissioner of transportation
determines that a balance remains in the state
airports fund following the appropriations
made in this article and that the appropriations
made are insufficient for advancing airport
development and assistance projects, an
amount necessary to advance the projects, not
to exceed the balance in the state airports fund,
is appropriated in each year to the
commissioner and must be spent according to
Minnesota Statutes, section 360.305,
subdivision 4. Within two weeks of a
determination under this contingent
appropriation, the commissioner of
transportation must notify the commissioner
of management and budget and the chairs,
ranking minority members, and staff of the
legislative committees with jurisdiction over
transportation finance concerning the funds
appropriated. Funds appropriated under this
contingent appropriation do not adjust the base
for fiscal years 2028 and 2029.
new text end

new text begin (2) Aviation Support Services new text end

new text begin 10,033,000 new text end

new text begin 10,183,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,843,000 new text end	new text begin 1,993,000 new text end
new text begin Airports new text end	new text begin 8,190,000 new text end	new text begin 8,190,000 new text end

new text begin (3) Civil Air Patrol new text end

new text begin 205,000 new text end

new text begin 205,000 new text end

new text begin This appropriation is from the state airports
fund for the Civil Air Patrol.
new text end

new text begin (b) Transit and Active Transportation new text end

new text begin 18,376,000 new text end

new text begin 18,376,000 new text end

new text begin This appropriation is from the general fund.
new text end

new text begin (c) Safe Routes to School new text end

new text begin 1,500,000 new text end

new text begin 1,500,000 new text end

new text begin This appropriation is from the general fund
for the safe routes to school program under
Minnesota Statutes, section 174.40.
new text end

new text begin If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.
new text end

new text begin (d) Passenger Rail new text end

new text begin 5,743,000 new text end

new text begin 5,743,000 new text end

new text begin This appropriation is from the general fund
for passenger rail activities under Minnesota
Statutes, sections 174.632 to 174.636.
new text end

new text begin (e) new text end new text begin Freight new text end

new text begin 9,215,000 new text end

new text begin 9,284,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 2,403,000 new text end	new text begin 2,403,000 new text end
new text begin Trunk Highway new text end	new text begin 6,812,000 new text end	new text begin 6,881,000 new text end

new text begin Subd. 3. new text end new text begin State Roads new text end
new text begin (a) Operations and Maintenance new text end				new text begin 436,805,000 new text end		new text begin 440,274,000 new text end

new text begin (b) Program Planning and Delivery new text end
new text begin (1) Planning and Research new text end				new text begin 37,006,000 new text end		new text begin 37,244,000 new text end

new text begin The commissioner may use any balance
remaining in this appropriation for program
delivery under clause (2).
new text end

new text begin $134,000 in fiscal year 2026 and $135,000 in
fiscal year 2027 are available for
administrative costs of the targeted group
business program.
new text end

new text begin $300,000 in each year is available for grants
to metropolitan planning organizations outside
the seven-county metropolitan area.
new text end

new text begin $900,000 in each year is available for grants
for transportation studies outside the
metropolitan area to identify critical concerns,
problems, and issues. These grants are
available: (i) to regional development
commissions; (ii) in regions where no regional
development commission is functioning, to
joint powers boards established under
agreement of two or more political
subdivisions in the region to exercise the
planning functions of a regional development
commission; and (iii) in regions where no
regional development commission or joint
powers board is functioning, to the Department
of Transportation district office for that region.
new text end

new text begin (2) Program Delivery new text end

new text begin 280,588,000 new text end

new text begin 283,701,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 2,000,000 new text end	new text begin 2,000,000 new text end
new text begin Trunk Highway new text end	new text begin 278,588,000 new text end	new text begin 281,701,000 new text end

new text begin This appropriation includes use of consultants
to support development and management of
projects.
new text end

new text begin $1,003,000 in fiscal year 2026 and $1,005,000
in fiscal year 2027 are available from the trunk
highway fund for management of
contaminated and regulated material on
property owned by the Department of
Transportation, including mitigation of
property conveyances, facility acquisition or
expansion, chemical release at maintenance
facilities, and spills on the trunk highway
system where there is no known responsible
party. If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.
new text end

new text begin (c) State Road Construction new text end

new text begin 2,214,557,000 new text end

new text begin 1,231,157,000 new text end

new text begin This appropriation is for the actual
construction, reconstruction, and improvement
of trunk highways, including design-build
contracts, internal department costs associated
with delivering the construction program,
consultant usage to support these activities,
and the cost of actual payments to landowners
for lands acquired for highway rights-of-way,
payment to lessees, interest subsidies, and
relocation expenses.
new text end

new text begin This appropriation includes federal highway
aid. The commissioner of transportation must
notify the chairs, ranking minority members,
and staff of the legislative committees with
jurisdiction over transportation finance of any
significant events that cause the estimates of
federal aid to change.
new text end

new text begin $650,000,000 in fiscal year 2026 is for the
John A. Blatnik Bridge between Duluth,
Minnesota, and Superior, Wisconsin. The
commissioner may use up to 17 percent of the
amount for program delivery. This is a
onetime appropriation and is available until
June 30, 2033.
new text end

new text begin The commissioner may expend up to one-half
of one percent of the federal appropriations
under this paragraph as grants to opportunity
industrialization centers and other nonprofit
job training centers for job training programs
related to highway construction.
new text end

new text begin The commissioner may transfer up to
$15,000,000 in each year to the transportation
revolving loan fund.
new text end

new text begin The commissioner may receive money
covering other shares of the cost of partnership
projects. These receipts are appropriated to
the commissioner for these projects.
new text end

new text begin The base is $1,276,546,000 in fiscal year 2028
and each year thereafter.
new text end

new text begin (d) Corridors of Commerce new text end

new text begin 25,000,000 new text end

new text begin 25,000,000 new text end

new text begin This appropriation is for the corridors of
commerce program under Minnesota Statutes,
section 161.088. The commissioner may use
up to 17 percent of the amount in each year
for program delivery.
new text end

new text begin (e) Highway Debt Service new text end

new text begin 296,575,000 new text end

new text begin 319,675,000 new text end

new text begin $293,575,000 in fiscal year 2026 and
$316,675,000 in fiscal year 2027 are for
transfer to the state bond fund. If this
appropriation is insufficient to make all
transfers required in the year for which it is
made, the commissioner of management and
budget must transfer the deficiency amount
as provided under Minnesota Statutes, section
16A.641, and notify the chairs, ranking
minority members, and staff of the legislative
committees with jurisdiction over
transportation finance and the chairs of the
senate Finance Committee and the house of
representatives Ways and Means Committee
of the amount of the deficiency. Any excess
appropriation cancels to the trunk highway
fund.
new text end

new text begin (f) Statewide Radio Communications new text end

new text begin 7,052,000 new text end

new text begin 7,121,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,000 new text end	new text begin 3,000 new text end
new text begin Trunk Highway new text end	new text begin 7,049,000 new text end	new text begin 7,118,000 new text end

new text begin $3,000 in each year is from the general fund
to equip and operate the Roosevelt signal
tower for Lake of the Woods weather
broadcasting.
new text end

new text begin Subd. 4. new text end new text begin Local Roads new text end
new text begin (a) County State-Aid Highways new text end				new text begin 1,099,805,000 new text end		new text begin 1,123,821,000 new text end

new text begin This appropriation is from the county state-aid
highway fund under Minnesota Statutes,
sections 161.081, 174.49, and 297A.815,
subdivision 3, and chapter 162, and is
available until June 30, 2035.
new text end

new text begin If the commissioner of transportation
determines that a balance remains in the
county state-aid highway fund following the
appropriations and transfers made in this
paragraph and that the appropriations made
are insufficient for advancing county state-aid
highway projects, an amount necessary to
advance the projects, not to exceed the balance
in the county state-aid highway fund, is
appropriated in each year to the commissioner.
Within two weeks of a determination under
this contingent appropriation, the
commissioner of transportation must notify
the commissioner of management and budget
and the chairs, ranking minority members, and
staff of the legislative committees with
jurisdiction over transportation finance
concerning funds appropriated. The governor
must identify in the next budget submission
to the legislature under Minnesota Statutes,
section 16A.11, any amount that is
appropriated under this paragraph.
new text end

new text begin (b) Municipal State-Aid Streets new text end

new text begin 278,780,000 new text end

new text begin 283,002,000 new text end

new text begin This appropriation is from the municipal
state-aid street fund under Minnesota Statutes,
chapter 162, and is available until June 30,
2035.
new text end

new text begin If the commissioner of transportation
determines that a balance remains in the
municipal state-aid street fund following the
appropriations and transfers made in this
paragraph and that the appropriations made
are insufficient for advancing municipal
state-aid street projects, an amount necessary
to advance the projects, not to exceed the
balance in the municipal state-aid street fund,
is appropriated in each year to the
commissioner. Within two weeks of a
determination under this contingent
appropriation, the commissioner of
transportation must notify the commissioner
of management and budget and the chairs,
ranking minority members, and staff of the
legislative committees with jurisdiction over
transportation finance concerning funds
appropriated. The governor must identify in
the next budget submission to the legislature
under Minnesota Statutes, section 16A.11, any
amount that is appropriated under this
paragraph.
new text end

new text begin (c) Other Local Roads new text end

new text begin Local Transportation Disaster Support new text end

new text begin 1,000,000 new text end

new text begin 1,000,000 new text end

new text begin This appropriation is from the general fund to
provide a cost-share for federal assistance
from the Federal Highway Administration for
the emergency relief program under United
States Code, title 23, section 125. If the
appropriation for either year is insufficient,
the appropriation for the other year is available
for it.
new text end

new text begin Subd. 5. new text end new text begin Agency Management new text end

new text begin (a) Agency Services new text end

new text begin 92,298,000 new text end

new text begin 95,889,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 6,200,000 new text end	new text begin 6,200,000 new text end
new text begin Trunk Highway new text end	new text begin 86,098,000 new text end	new text begin 89,689,000 new text end

new text begin (b) Buildings new text end

new text begin 44,710,000 new text end

new text begin 44,802,000 new text end

new text begin Any money appropriated to the commissioner
of transportation for building construction for
any fiscal year before fiscal year 2026 is
available to the commissioner during the
biennium to the extent that the commissioner
spends the money on the building construction
projects for which the money was originally
encumbered during the fiscal year for which
it was appropriated. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin (c) Tort Claims new text end

new text begin 600,000 new text end

new text begin 600,000 new text end

new text begin If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.
new text end

new text begin Subd. 6. new text end new text begin Transfers; General Authority new text end

new text begin (a) With the approval of the commissioner of
management and budget, the commissioner
of transportation may transfer unencumbered
balances among the appropriations from the
trunk highway fund and the state airports fund
made in this section. Transfers under this
paragraph must not be made: (1) between
funds; (2) from the appropriations for state
road construction or debt service; or (3) from
the appropriations for operations and
maintenance or program delivery, except for
a transfer to state road construction or debt
service.
new text end

new text begin (b) The commissioner of transportation must
immediately report transfers under paragraph
(a) to the chairs, ranking minority members,
and staff of the legislative committees with
jurisdiction over transportation finance. The
authority for the commissioner of
transportation to make transfers under
Minnesota Statutes, section 16A.285, is
superseded by the authority and requirements
under this subdivision.
new text end

new text begin Subd. 7. new text end new text begin Transfers; Flexible Highway Account new text end

new text begin The commissioner of transportation must
transfer from the flexible highway account in
the county state-aid highway fund:
new text end

new text begin (1) $21,800,000 in fiscal year 2026 to the
trunk highway fund;
new text end

new text begin (2) $22,230,000 in fiscal year 2026 to the
municipal turnback account in the municipal
state-aid street fund; and
new text end

new text begin (3) the remainder in each year to the county
turnback account in the county state-aid
highway fund.
new text end

new text begin The money transferred under this subdivision
is for highway turnback purposes as provided
under Minnesota Statutes, section 161.081,
subdivision 3.
new text end

new text begin Subd. 8. new text end new text begin Contingent Appropriations new text end

new text begin The commissioner of transportation, with the
approval of the governor and the written
approval of at least five members of a group
consisting of the members of the Legislative
Advisory Commission under Minnesota
Statutes, section 3.30, and the ranking minority
members of the legislative committees with
jurisdiction over transportation finance, may
transfer all or part of the unappropriated
balance in the trunk highway fund to an
appropriation: (1) for trunk highway design,
construction, or inspection in order to take
advantage of an unanticipated receipt of
income to the trunk highway fund or to take
advantage of federal advanced construction
funding; (2) for trunk highway maintenance
in order to meet an emergency; or (3) to pay
tort or environmental claims. Nothing in this
subdivision authorizes the commissioner to
increase the use of federal advanced
construction funding beyond amounts
specifically authorized. Any transfer as a result
of the use of federal advanced construction
funding must include an analysis of the effects
on the long-term trunk highway fund balance.
The amount transferred is appropriated for the
purpose of the account to which it is
transferred.
new text end

Sec. 3. new text begin METROPOLITAN COUNCIL new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 115,127,000 new text end

new text begin $ new text end

new text begin 120,190,000 new text end

new text begin The appropriation in this section is from the
general fund to the Metropolitan Council.
new text end

new text begin Subd. 2. new text end new text begin Special Transportation Service new text end

new text begin 115,127,000 new text end

new text begin 120,190,000 new text end

new text begin This appropriation is for special transportation
service under Minnesota Statutes, section
473.386, including Metro Mobility and Metro
Move.
new text end

Sec. 4. new text begin DEPARTMENT OF PUBLIC SAFETY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 301,789,000 new text end

new text begin $ new text end

new text begin 303,511,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 41,589,000 new text end	new text begin 41,623,000 new text end
new text begin H.U.T.D. new text end	new text begin 1,382,000 new text end	new text begin 1,395,000 new text end
new text begin Special Revenue new text end	new text begin 80,898,000 new text end	new text begin 80,576,000 new text end
new text begin Trunk Highway new text end	new text begin 177,920,000 new text end	new text begin 179,917,000 new text end

new text begin The appropriations in this section are to the
commissioner of public safety.
new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions. The commissioner must spend
appropriations from the trunk highway fund
in subdivision 3 only for State Patrol purposes.
new text end

new text begin Subd. 2. new text end new text begin Administration and Related Services new text end

new text begin (a) Office of Communications new text end

new text begin 1,198,000 new text end

new text begin 1,232,000 new text end

new text begin This appropriation is from the general fund.
new text end

new text begin (b) Public Safety Support new text end

new text begin 11,989,000 new text end

new text begin 12,033,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 6,561,000 new text end	new text begin 6,561,000 new text end
new text begin Trunk Highway new text end	new text begin 5,428,000 new text end	new text begin 5,472,000 new text end

new text begin (c) Public Safety Officer Survivor Benefits new text end

new text begin 1,640,000 new text end

new text begin 1,640,000 new text end

new text begin This appropriation is from the general fund
for payment of public safety officer survivor
benefits under Minnesota Statutes, section
299A.44. If the appropriation for either year
is insufficient, the appropriation for the other
year is available for it.
new text end

new text begin (d) Public Safety Officer Reimbursements new text end

new text begin 1,367,000 new text end

new text begin 1,367,000 new text end

new text begin This appropriation is from the general fund
for transfer to the public safety officer's benefit
account. This appropriation is available for
reimbursements under Minnesota Statutes,
section 299A.465.
new text end

new text begin (e) Soft Body Armor Reimbursements new text end

new text begin 745,000 new text end

new text begin 745,000 new text end

new text begin This appropriation is from the general fund
for soft body armor reimbursements under
Minnesota Statutes, section 299A.38.
new text end

new text begin (f) Technology and Support Services new text end

new text begin 7,130,000 new text end

new text begin 7,130,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,743,000 new text end	new text begin 1,743,000 new text end
new text begin Trunk Highway new text end	new text begin 5,387,000 new text end	new text begin 5,387,000 new text end

new text begin Subd. 3. new text end new text begin State Patrol new text end

new text begin (a) Patrolling Highways new text end

new text begin 147,013,000 new text end

new text begin 148,960,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 37,000 new text end	new text begin 37,000 new text end
new text begin H.U.T.D. new text end	new text begin 92,000 new text end	new text begin 92,000 new text end
new text begin Trunk Highway new text end	new text begin 146,884,000 new text end	new text begin 148,831,000 new text end

new text begin $1,045,000 in each year is from the trunk
highway fund for recruitment and hiring
initiatives. The base for this purpose is
$10,365,000 in fiscal year 2028 and later,
which includes funding to conduct an
additional annual trooper academy.
new text end

new text begin The base from the trunk highway fund is
$158,151,000 in fiscal year 2028 and each
year thereafter.
new text end

new text begin (b) Commercial Vehicle Enforcement new text end

new text begin 18,861,000 new text end

new text begin 18,861,000 new text end

new text begin (c) Capitol Security new text end

new text begin 19,243,000 new text end

new text begin 19,243,000 new text end

new text begin This appropriation is from the general fund.
new text end

new text begin The commissioner must not:
new text end

new text begin (1) spend any money from the trunk highway
fund for capitol security; or
new text end

new text begin (2) permanently transfer any state trooper from
the patrolling highways activity to capitol
security.
new text end

new text begin The commissioner must not transfer any
money appropriated to the commissioner under
this section:
new text end

new text begin (1) to capitol security; or
new text end

new text begin (2) from capitol security.
new text end

new text begin (d) Vehicle Crimes Unit new text end

new text begin 1,290,000 new text end

new text begin 1,303,000 new text end

new text begin This appropriation is from the highway user
tax distribution fund to investigate:
new text end

new text begin (1) registration tax and motor vehicle sales tax
liabilities from individuals and businesses that
currently do not pay all taxes owed; and
new text end

new text begin (2) illegal or improper activity related to the
sale, transfer, titling, and registration of motor
vehicles.
new text end

new text begin Subd. 4. new text end new text begin Driver and Vehicle Services new text end

new text begin (a) Driver Services new text end

new text begin 47,587,000 new text end

new text begin 47,265,000 new text end

new text begin This appropriation is from the driver and
vehicle services operating account under
Minnesota Statutes, section 299A.705.
new text end

new text begin $457,000 in fiscal year 2026 and $133,000 in
fiscal year 2027 are for rulemaking and
implementation costs for the ignition interlock
device program under Minnesota Statutes,
section 171.306.
new text end

new text begin (b) Vehicle Services new text end

new text begin 31,868,000 new text end

new text begin 31,868,000 new text end

new text begin This appropriation is from the driver and
vehicle services operating account under
Minnesota Statutes, section 299A.705.
new text end

new text begin $2,189,000 in each year is for payments to
deputy registrars under Minnesota Statutes,
section 168.33, subdivision 7, and to driver's
license agents under Minnesota Statutes,
section 171.061, subdivision 4.
new text end

new text begin Subd. 5. new text end new text begin Traffic Safety new text end

new text begin 9,855,000 new text end

new text begin 9,861,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 8,495,000 new text end	new text begin 8,495,000 new text end
new text begin Trunk Highway new text end	new text begin 1,360,000 new text end	new text begin 1,366,000 new text end

new text begin $2,000,000 in each year is from the general
fund for operations and traffic safety projects
and activities of the Advisory Council on
Traffic Safety under Minnesota Statutes,
section 4.076.
new text end

new text begin The following amounts are for the staff and
operating costs related to a Traffic Safety Data
Analytics Center: (1) $813,000 in each year
is from the general fund; and (2) $187,000 in
each year is from the trunk highway fund.
new text end

new text begin $5,001,000 in each year is for the drug
evaluation and classification program for drug
recognition evaluator training; phlebotomists;
drug recognition training for peace officers,
as defined in Minnesota Statutes, section
626.84, subdivision 1, paragraph (c); required
continuing education training for drug
recognition experts; program administration;
grants to local law enforcement divisions; and
grants to eligible employers for drug
evaluation and classification training costs of
their staff. The commissioner must make
reasonable efforts to reflect the geographic
diversity of the state in making expenditures.
Any balance in the first year does not cancel
but is available in the second year.
new text end

new text begin Subd. 6. new text end new text begin Pipeline Safety new text end

new text begin 2,003,000 new text end

new text begin 2,003,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 560,000 new text end	new text begin 560,000 new text end
new text begin Special Revenue new text end	new text begin 1,443,000 new text end	new text begin 1,443,000 new text end

new text begin The appropriation from the special revenue
fund is from the pipeline safety account under
Minnesota Statutes, section 299J.18.
new text end

Sec. 5. new text begin APPROPRIATION; DEPARTMENT OF ADMINISTRATION.
new text end

new text begin $48,513,000 in each year is appropriated from the trunk highway fund to the
commissioner of administration to design, construct, remodel, equip, and furnish a central
headquarters building and support facilities for the State Patrol. This appropriation may
also be used to predesign, design, remodel, equip, and furnish existing State Patrol facilities.
This is a onetime appropriation and is available until June 30, 2030.
new text end

Sec. 6. new text begin TRANSFER
new text end

new text begin (a) $8,155,000 in fiscal year 2026 is transferred from the general fund to the active
transportation account under Minnesota Statutes, section 174.38.
new text end

new text begin (b) $8,284,000 in fiscal year 2027 and each year thereafter is transferred from the general
fund to the active transportation account under Minnesota Statutes, section 174.38.
new text end

Sec. 7.

Laws 2021, First Special Session chapter 5, article 1, section 2, subdivision 2, as
amended by Laws 2024, chapter 127, article 1, section 10, is amended to read:

Subd. 2. Multimodal Systems

(a) Aeronautics

(1) Airport Development and Assistance

24,198,000

18,598,000

Appropriations by Fund
	2022	2023
General	5,600,000	-0-
Airports	18,598,000	18,598,000

This appropriation is from the state airports
fund and must be spent according to
Minnesota Statutes, section 360.305,
subdivision 4.

$5,600,000 in fiscal year 2022 is from the
general fund for a grant to the city of Karlstad
for the acquisition of land, predesign, design,
engineering, and construction of a primary
airport runway. This appropriation is for Phase
1 of the project.

Notwithstanding Minnesota Statutes, section
16A.28, subdivision 6, this appropriation is
available for five years after the year of the
appropriation. If the appropriation for either
year is insufficient, the appropriation for the
other year is available for it.

If the commissioner of transportation
determines that a balance remains in the state
airports fund following the appropriations
made in this article and that the appropriations
made are insufficient for advancing airport
development and assistance projects, an
amount necessary to advance the projects, not
to exceed the balance in the state airports fund,
is appropriated in each year to the
commissioner and must be spent according to
Minnesota Statutes, section 360.305,
subdivision 4. Within two weeks of a
determination under this contingent
appropriation, the commissioner of
transportation must notify the commissioner
of management and budget and the chairs,
ranking minority members, and staff of the
legislative committees with jurisdiction over
transportation finance concerning the funds
appropriated. Funds appropriated under this
contingent appropriation do not adjust the base
for fiscal years 2024 and 2025.

(2) Aviation Support Services

8,332,000

8,340,000

Appropriations by Fund
	2022	2023
General	1,650,000	1,650,000
Airports	6,682,000	6,690,000

$28,000 in fiscal year 2022 and $36,000 in
fiscal year 2023 are from the state airports
fund for costs related to regulating unmanned
aircraft systems.

(3) Civil Air Patrol

80,000

80,000

This appropriation is from the state airports
fund for the Civil Air Patrol.

(b) Transit and Active Transportation

23,501,000

18,201,000

This appropriation is from the general fund.

$5,000,000 in fiscal year 2022 is for the active
transportation program under Minnesota
Statutes, section 174.38. This is a onetime
appropriation and is available until June 30,
2025.

$300,000 in fiscal year 2022 is for a grant to
the 494 Corridor Commission. The
commissioner must not retain any portion of
the funds appropriated under this section. The
commissioner must make grant payments in
full by December 31, 2021. Funds under this
grant are for programming and service
expansion to assist companies and commuters
in telecommuting efforts and promotion of
best practices. A grant recipient must provide
telework resources, assistance, information,
and related activities on a statewide basis. This
is a onetime appropriation.

(c) Safe Routes to School

5,500,000

500,000

This appropriation is from the general fund
for the safe routes to school program under
Minnesota Statutes, section 174.40.

If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.

(d) Passenger Rail

10,500,000

500,000

This appropriation is from the general fund
for passenger rail activities under Minnesota
Statutes, sections 174.632 to 174.636.

$10,000,000 in fiscal year 2022 is for final
design and construction to provide for a
second daily Amtrak train service between
Minneapolis and St. Paul and Chicago. The
commissioner may expend funds for program
delivery and administration from this amount.
This is a onetime appropriation and is
available until June 30, deleted text begin 2025 deleted text end new text begin 2028 new text end .

(e) Freight

8,342,000

7,323,000

Appropriations by Fund
	2022	2023
General	2,464,000	1,445,000
Trunk Highway	5,878,000	5,878,000

$1,000,000 in fiscal year 2022 is from the
general fund for procurement costs of a
statewide freight network optimization tool.
This is a onetime appropriation and is
available until June 30, 2023.

$350,000 in fiscal year 2022 and $287,000 in
fiscal year 2023 are from the general fund for
two additional rail safety inspectors in the state
rail safety inspection program under
Minnesota Statutes, section 219.015. In each
year, the commissioner must not increase the
total assessment amount under Minnesota
Statutes, section 219.015, subdivision 2, from
the most recent assessment amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Laws 2021, First Special Session chapter 14, article 11, section 45, is amended to
read:

Sec. 45. APPROPRIATION; DEPARTMENT OF TRANSPORTATION.

$6,200,000 in fiscal year 2022 is appropriated from the general fund to the commissioner
of transportation for project development of a land bridge freeway lid over marked Interstate
Highway 94 in a portion of the segment from Lexington Avenue to Rice Street in St. Paul.
This amount is available to match federal funds and for project planning and development,
including area planning, community and land use planning, economic development planning,
design, and project management and analysis. From this amount, the commissioner may
make grants to Reconnect Rondo to perform any eligible project development activities.
This is a onetime appropriation and is available until June 30, deleted text begin 2025 deleted text end new text begin 2026 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Laws 2023, chapter 60, article 10, section 9, is amended to read:

Sec. 9. DEPARTMENT OF TRANSPORTATION

$

310,000

$

-0-

$310,000 the first year is deleted text begin for awarding grants deleted text end
to assist manufacturers to obtain
environmental product declarations for certain
construction materials used to build roads and
other transportation infrastructure under
Minnesota Statutes, section 16B.312. Of this
amount, up to $10,000 is for the reasonable
costs of the department to administer that
section. This appropriation is available until
June 30, 2027.

Sec. 10.

Laws 2023, chapter 68, article 1, section 2, subdivision 2, is amended to read:

Subd. 2. Multimodal Systems

(a) Aeronautics

(1) Airport Development and Assistance

69,598,000

18,598,000

Appropriations by Fund
	2024	2025
General	36,000,000	-0-
Airports	33,598,000	18,598,000

The appropriation from the state airports fund
must be spent according to Minnesota Statutes,
section 360.305, subdivision 4.

$36,000,000 in fiscal year 2024 is from the
general fund for matches to federal aid and
state investments related to airport
infrastructure projects. This is a onetime
appropriation and is available until June 30,
2027.

$15,000,000 in fiscal year 2024 is from the
state airports fund for system maintenance of
critical airport safety systems, equipment, and
essential airfield technology.

Notwithstanding Minnesota Statutes, section
16A.28, subdivision 6, the appropriation from
the state airports fund is available for five
years after the year of the appropriation. If the
appropriation for either year is insufficient,
the appropriation for the other year is available
for it.

If the commissioner of transportation
determines that a balance remains in the state
airports fund following the appropriations
made in this article and that the appropriations
made are insufficient for advancing airport
development and assistance projects, an
amount necessary to advance the projects, not
to exceed the balance in the state airports fund,
is appropriated in each year to the
commissioner and must be spent according to
Minnesota Statutes, section 360.305,
subdivision 4. Within two weeks of a
determination under this contingent
appropriation, the commissioner of
transportation must notify the commissioner
of management and budget and the chairs,
ranking minority members, and staff of the
legislative committees with jurisdiction over
transportation finance concerning the funds
appropriated. Funds appropriated under this
contingent appropriation do not adjust the base
for fiscal years 2026 and 2027.

(2) Aviation Support Services

15,397,000

8,431,000

Appropriations by Fund
	2024	2025
General	8,707,000	1,741,000
Airports	6,690,000	6,690,000

$7,000,000 in fiscal year 2024 is from the
general fund to purchase two utility aircraft
for the Department of Transportation.

(3) Civil Air Patrol

80,000

80,000

This appropriation is from the state airports
fund for the Civil Air Patrol.

(b) Transit and Active Transportation

58,478,000

18,374,000

This appropriation is from the general fund.

$200,000 in fiscal year 2024 and $50,000 in
fiscal year 2025 are for a grant to the city of
Rochester to implement demand response
transit service using electric transit vehicles.
The money is available for mobile software
application development; vehicles and
equipment, including accessible vehicles;
associated charging infrastructure; and capital
and operating costs.

$40,000,000 in fiscal year 2024 is for matches
to federal aid and state investments related to
transit and active transportation projects. This
is a onetime appropriation and is available
until June 30, 2027.

(c) Safe Routes to School

15,297,000

10,500,000

This appropriation is from the general fund
for the safe routes to school program under
Minnesota Statutes, section 174.40.

If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it. The appropriations in
each year are available until June 30, 2027.

The base for this appropriation is $1,500,000
in each of fiscal years 2026 and 2027.

(d) Passenger Rail

197,521,000

4,226,000

This appropriation is from the general fund
for passenger rail activities under Minnesota
Statutes, sections 174.632 to 174.636.

$194,700,000 in fiscal year 2024 is for capital
improvements and betterments for the
Minneapolis-Duluth Northern Lights Express
intercity passenger rail project, including
preliminary engineering, design, engineering,
environmental analysis and mitigation,
acquisition of land and right-of-way,
equipment and rolling stock, and construction.
From this appropriation, the amount necessary
is for: (1) Coon Rapids station improvements
to establish a joint station that provides for
Amtrak train service on the Empire Builder
line between Chicago and Seattle; and (2)
acquisition of equipment and rolling stock for
purposes of participation in the Midwest fleet
pool to provide for service on Northern Lights
Express and expanded Amtrak train service
between Minneapolis and St. Paul and
Chicago. The commissioner of transportation
must not approve additional stops or stations
beyond those included in the Federal Railroad
Administration's January 2018 Finding of No
Significant Impact and Section 4(f)
Determination if the commissioner determines
that the resulting speed reduction would
negatively impact total ridership. This
appropriation is onetime and is available until
June 30, 2028.

$1,833,000 in fiscal year 2024 and $3,238,000
in fiscal year 2025 are for a match to federal
aid for capital and operating costs for
expanded Amtrak train service between
Minneapolis and St. Paul and Chicago. new text begin These
amounts are available until June 30, 2028.
new text end

The base from the general fund is $5,742,000
in each of fiscal years 2026 and 2027.

(e) Freight

14,650,000

9,066,000

Appropriations by Fund
	2024	2025
General	8,283,000	2,400,000
Trunk Highway	6,367,000	6,666,000

$5,000,000 in fiscal year 2024 is from the
general fund for matching federal aid grants
for improvements, engineering, and
administrative costs for the Stone Arch Bridge
in Minneapolis. This is a onetime
appropriation and is available until June 30,
2027.

$1,000,000 in each year is from the general
fund for staff, operating costs, and
maintenance related to weight and safety
enforcement systems.

$974,000 in fiscal year 2024 is from the
general fund for procurement costs of a
statewide freight network optimization tool
under Laws 2021, First Special Session
chapter 5, article 4, section 133. This is a
onetime appropriation and is available until
June 30, 2025.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Laws 2023, chapter 68, article 1, section 2, subdivision 3, is amended to read:

Subd. 3. State Roads
(a) Operations and Maintenance				414,220,000		425,341,000

Appropriations by Fund
	2024	2025
General	2,000,000	-0-
Trunk Highway	412,220,000	425,341,000

$1,000,000 in fiscal year 2024 is from the
general fund for the highways for habitat
program under Minnesota Statutes, section
160.2325. new text begin This amount is available until June
30, 2027.
new text end

$248,000 in each year is from the trunk
highway fund for living snow fence
implementation and maintenance activities.

$1,000,000 in fiscal year 2024 is from the
general fund for safe road zones under
Minnesota Statutes, section 169.065, including
development and delivery of public awareness
and education campaigns about safe road
zones.

(b) Program Planning and Delivery
(1) Planning and Research				32,679,000		33,465,000

The commissioner may use any balance
remaining in this appropriation for program
delivery under clause (2).

$130,000 in each year is available for
administrative costs of the targeted group
business program.

$266,000 in each year is available for grants
to metropolitan planning organizations outside
the seven-county metropolitan area.

$900,000 in each year is available for grants
for transportation studies outside the
metropolitan area to identify critical concerns,
problems, and issues. These grants are
available: (i) to regional development
commissions; (ii) in regions where no regional
development commission is functioning, to
joint powers boards established under
agreement of two or more political
subdivisions in the region to exercise the
planning functions of a regional development
commission; and (iii) in regions where no
regional development commission or joint
powers board is functioning, to the Department
of Transportation district office for that region.

(2) Program Delivery

274,451,000

273,985,000

Appropriations by Fund
	2024	2025
General	2,250,000	2,000,000
Trunk Highway	272,201,000	271,985,000

This appropriation includes use of consultants
to support development and management of
projects.

$10,000,000 in fiscal year 2024 is from the
trunk highway fund for roadway design and
related improvements that reduce speeds and
eliminate intersection interactions on rural
high-risk roadways. The commissioner must
identify roadways based on crash information
and in consultation with the Advisory Council
on Traffic Safety under Minnesota Statutes,
section 4.076, and local traffic safety partners.
This is a onetime appropriation and is
available until June 30, 2026.

$2,000,000 in each year is from the general
fund for implementation of climate-related
programs as provided under the federal
Infrastructure Investment and Jobs Act, Public
Law 117-58.

$1,193,000 in fiscal year 2024 is from the
trunk highway fund for costs related to the
property conveyance to the Upper Sioux
Community of state-owned land within the
boundaries of Upper Sioux Agency State Park,
including fee purchase, property purchase,
appraisals, and road and bridge demolition
and related engineering. new text begin This amount is
available until June 30, 2027.
new text end

$250,000 in fiscal year 2024 is from the
general fund for costs related to the Clean
Transportation Fuel Standard Working Group
established under article 4, section 124.

$1,000,000 in each year is available from the
trunk highway fund for management of
contaminated and regulated material on
property owned by the Department of
Transportation, including mitigation of
property conveyances, facility acquisition or
expansion, chemical release at maintenance
facilities, and spills on the trunk highway
system where there is no known responsible
party. If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.

(c) State Road Construction

1,207,013,000

1,174,045,000

Appropriations by Fund
	2024	2025
General	1,800,000	-0-
Trunk Highway	1,205,213,000	1,174,045,000

This appropriation is for the actual
construction, reconstruction, and improvement
of trunk highways, including design-build
contracts, internal department costs associated
with delivering the construction program,
consultant usage to support these activities,
and the cost of actual payments to landowners
for lands acquired for highway rights-of-way,
payment to lessees, interest subsidies, and
relocation expenses.

This appropriation includes federal highway
aid. The commissioner of transportation must
notify the chairs, ranking minority members,
and staff of the legislative committees with
jurisdiction over transportation finance of any
significant events that cause the estimates of
federal aid to change.

$1,500,000 in fiscal year 2024 is from the
general fund for living snow fence
implementation, including: acquiring and
planting trees, shrubs, native grasses, and
wildflowers that are climate adaptive to
Minnesota; improvements; contracts;
easements; rental agreements; and program
delivery.

$300,000 in fiscal year 2024 is from the
general fund for additions and modifications
to work zone design or layout to reduce
vehicle speeds in a work zone. This
appropriation is available following a
determination by the commissioner that the
initial work zone design or layout
insufficiently provides for reduced vehicle
speeds.

The commissioner may expend up to one-half
of one percent of the federal appropriations
under this paragraph as grants to opportunity
industrialization centers and other nonprofit
job training centers for job training programs
related to highway construction.

The commissioner may transfer up to
$15,000,000 in each year to the transportation
revolving loan fund.

The commissioner may receive money
covering other shares of the cost of partnership
projects. These receipts are appropriated to
the commissioner for these projects.

The base from the trunk highway fund is
$1,161,813,000 in each of fiscal years 2026
and 2027.

(d) Corridors of Commerce

25,000,000

25,000,000

This appropriation is for the corridors of
commerce program under Minnesota Statutes,
section 161.088. The commissioner may use
up to 17 percent of the amount in each year
for program delivery.

(e) Highway Debt Service

268,336,000

291,394,000

$265,336,000 in fiscal year 2024 and
$288,394,000 in fiscal year 2025 are for
transfer to the state bond fund. If this
appropriation is insufficient to make all
transfers required in the year for which it is
made, the commissioner of management and
budget must transfer the deficiency amount
as provided under Minnesota Statutes, section
16A.641, and notify the chairs, ranking
minority members, and staff of the legislative
committees with jurisdiction over
transportation finance and the chairs of the
senate Finance Committee and the house of
representatives Ways and Means Committee
of the amount of the deficiency. Any excess
appropriation cancels to the trunk highway
fund.

(f) Statewide Radio Communications

8,653,000

6,907,000

Appropriations by Fund
	2024	2025
General	2,003,000	3,000
Trunk Highway	6,650,000	6,904,000

$3,000 in each year is from the general fund
to equip and operate the Roosevelt signal
tower for Lake of the Woods weather
broadcasting.

$2,000,000 in fiscal year 2024 is from the
general fund for Allied Radio Matrix for
Emergency Response (ARMER) tower
building improvements and replacement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Laws 2024, chapter 127, article 1, section 2, subdivision 3, is amended to read:

Subd. 3. State Roads

(a) Operations and Maintenance

-0-

2,405,000

$300,000 in fiscal year 2025 is for rumble
strips under Minnesota Statutes, section
161.1258.

$1,000,000 in fiscal year 2025 is for
landscaping improvements located within
trunk highway rights-of-way deleted text begin under the
Department of Transportation's community
roadside landscape partnership program deleted text end , with
prioritization of tree planting as feasible.

$1,000,000 is from the general fund for the
traffic safety camera pilot program under
Minnesota Statutes, section 169.147, and the
evaluation and legislative report under article
3, sections 116 and 117. With the approval of
the commissioner of transportation, any
portion of this appropriation is available to the
commissioner of public safety. This is a
onetime appropriation and is available until
June 30, 2029.

$105,000 in fiscal year 2025 is for the cost of
staff time to coordinate with the Public
Utilities Commission relating to placement of
high voltage transmission lines along trunk
highways.

(b) Program Planning and Delivery

-0-

5,800,000

$3,000,000 in fiscal year 2025 is for
implementation and development of statewide
and regional travel demand modeling related
to the requirements under Minnesota Statutes,
section 161.178. This is a onetime
appropriation and is available until June 30,
2026.

$800,000 in fiscal year 2025 is for one or more
grants to metropolitan planning organizations
outside the metropolitan area, as defined in
Minnesota Statutes, section 473.121,
subdivision 2, for modeling activities related
to the requirements under Minnesota Statutes,
section 161.178. Notwithstanding Minnesota
Statutes, section 16B.98, subdivision 14, the
commissioner must not use any amount of this
appropriation for administrative costs. This is
a onetime appropriation new text begin and is available until
June 30, 2026 new text end .

$2,000,000 in fiscal year 2025 is to complete
environmental documentation and for
preliminary engineering and design for the
reconstruction of marked Trunk Highway 55
from Hennepin County State-Aid Highway
19, north of the city of Loretto to Hennepin
County Road 118 near the city of Medina.
This is a onetime appropriation and is
available until June 30, 2027.

(c) State Road Construction

-0-

10,900,000

$8,900,000 in fiscal year 2025 is for the
acquisition, environmental analysis, predesign,
design, engineering, construction,
reconstruction, and improvement of trunk
highway bridges, including design-build
contracts, program delivery, consultant usage
to support these activities, and the cost of
payments to landowners for lands acquired
for highway rights-of-way. Projects under this
appropriation must follow eligible investment
priorities identified in the Minnesota state
highway investment plan under Minnesota
Statutes, section 174.03, subdivision 1c. The
commissioner may use up to 17 percent of this
appropriation for program delivery. This is a
onetime appropriation and is available until
June 30, 2028.

$1,000,000 in fiscal year 2025 is for predesign
and design of intersection safety improvements
along marked Trunk Highway 65 from the
interchange with marked U.S. Highway 10 to
99th Avenue Northeast in the city of Blaine.
This is a onetime appropriation.

$1,000,000 in fiscal year 2025 is to design and
construct trunk highway improvements
associated with an interchange at U.S.
Highway 169, marked Trunk Highway 282,
and Scott County State-Aid Highway 9 in the
city of Jordan, including accommodations for
bicycles and pedestrians and for bridge and
road construction. This is a onetime
appropriation and is available until June 30,
2027.

(d) Highway Debt Service

-0-

468,000

This appropriation is for transfer to the state
bond fund. If this appropriation is insufficient
to make all transfers required in the year for
which it is made, the commissioner of
management and budget must transfer the
deficiency amount as provided under
Minnesota Statutes, section 16A.641, and
notify the chairs and ranking minority
members of the legislative committees with
jurisdiction over transportation finance and
the chairs of the senate Finance Committee
and the house of representatives Ways and
Means Committee of the amount of the
deficiency. Any excess appropriation cancels
to the trunk highway fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

TRANSPORTATION FINANCE AND POLICY

Section 1.

Minnesota Statutes 2024, section 168.27, subdivision 8, is amended to read:

Subd. 8.

Exemptions.

(a) Salespeople and other employees of licensed dealers under
this section are not required to obtain individual licenses. new text begin For purposes of this subdivision,
independent contractors are not employees.
new text end

(b) Isolated or occasional sales or leases of new or used motor vehicles are exempt from
this section. A person who makes only isolated or occasional sales or leases is not required
to be licensed under this section, is not considered to be in the business of selling or leasing
motor vehicles, and does not qualify to receive dealer plates under subdivision 16. "Isolated
or occasional sales or leases" means: (1) the sale or lease of a motor vehicle with an actual
cash value of $1,000 or less made by a charitable organization; (2) the sale, purchase, or
lease of not more than five motor vehicles in a 12-month period, other than pioneer or classic
motor vehicles as defined in section 168.10, subdivisions 1a and 1b deleted text begin , deleted text end new text begin ; new text end or (3) sales by a
licensed auctioneer selling motor vehicles at an auction if, in the ordinary course of the
auctioneer's business, the sale of motor vehicles is incidental to the sale of other real or
personal property. For purposes of this subdivision, charitable organization means a nonprofit
charitable organization that qualifies for tax exemption under section 501(c)(3) of the Internal
Revenue Code.

(c) A person whose sales of new and used motor vehicles consist solely of sales to
political subdivisions and their agencies of vehicles used solely as firefighting equipment
is not required to obtain a license under this section. The person may apply for and receive
in-transit plates under subdivision 17 in the same manner as licensed motor vehicle dealers
for the purpose of allowing firefighting equipment to be transported from the dealer's source
of supply or other place of storage to the dealer's place of business, to another place of
storage, or directly to the purchaser.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 2.

Minnesota Statutes 2024, section 168.27, subdivision 11, is amended to read:

Subd. 11.

Dealers' licenses; location change notice; fee.

(a) Application for a dealer's
license or notification of a change of location of the place of business on a dealer's license
must include a street address, not a post office box, and is subject to the commissioner's
approval.

(b) Upon the filing of an application for a dealer's license and the proper fee, unless the
application on its face appears to be invalid, the commissioner deleted text begin shall deleted text end new text begin must new text end grant a 90-day
temporary license. During the 90-day period following issuance of the temporary license,
the commissioner deleted text begin shall deleted text end new text begin must new text end inspect the place of business site and insure compliance with
this section and rules adopted under this section.

(c) The commissioner may extend the temporary license 30 days to allow the temporarily
licensed dealer to come into full compliance with this section and rules adopted under this
section.

(d) In no more than 180 days following issuance of the temporary license, the dealer
license must either be granted or denied.

(e) A license must be denied under the following conditions:

(1) if deleted text begin within the previous ten years deleted text end the applicant was enjoined due to a violation of
section 325F.69 or convicted of violating section 325E.14, 325E.15, 325E.16, or 325F.69,
or convicted under section 609.53 of receiving or selling stolen vehicles, or convicted of
violating United States Code, title 49, sections 32701 to 32711 or pleaded guilty, entered a
plea of nolo contendere or no contest, or has been found guilty in a court of competent
jurisdiction of any charge of failure to pay state or federal income or sales taxes or felony
charge of forgery, embezzlement, obtaining money under false pretenses, theft by swindle,
extortion, conspiracy to defraud, deleted text begin or deleted text end bribery new text begin , or similar offenses committed in another state new text end ;
or

(2) if the applicant has had a dealer license revoked within the previous ten years.

(f) A license may be denied if a dealer is not in compliance with location requirements
under subdivision 10 or has intentionally misrepresented any information on the dealer
license application that would be grounds for suspension or revocation under subdivision
12.

(g) If the application is approved, the commissioner deleted text begin shall deleted text end new text begin must new text end license the applicant as
a dealer for one year from the date the temporary license is granted and issue a certificate
of license that must include a distinguishing number of identification of the dealer. The
license must be displayed in a prominent place in the dealer's licensed place of business.

(h) Each initial application for a license must be accompanied by a fee of $100 in addition
to the annual fee. The annual fee is $150. The initial fees and annual fees must be paid into
the state treasury and credited to the general fund except that $50 of each initial and annual
fee must be paid into the driver and vehicle services operating account under section
299A.705.

new text begin (i) An applicant for a dealer's license under this section must submit to a criminal history
records check of state data completed by the Bureau of Criminal Apprehension and a national
criminal history records check, including a search of the records of the Federal Bureau of
Investigation. The results of the background check must be returned to the commissioner.
new text end

new text begin (j) An applicant for a dealer's license must consent to a fingerprint-based criminal history
background check as required under paragraph (i), pay all required fees, and cooperate with
all requests for information. An applicant must complete a new criminal history background
check if more than one year has elapsed since the applicant last applied for a license.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 3.

Minnesota Statutes 2024, section 168.27, subdivision 16, is amended to read:

Subd. 16.

Dealer plates: distinguishing number, fee, tax, use.

(a) The registrar deleted text begin shall deleted text end new text begin
must new text end issue to every motor vehicle dealer, upon a request from the motor vehicle dealer
licensed as provided in subdivision 2 or 3 new text begin and subject to the limits provided in paragraph
(d) new text end , one or more plates displaying a general distinguishing number. This subdivision does
not apply to a scrap metal processor, a used vehicle parts dealer, or a vehicle salvage pool.
The fee for each of the first four plates is $75 per registration year, of which $60 must be
paid to the registrar and the remaining $15 is payable as sales tax on motor vehicles under
section 297B.035. For each additional plate, the dealer deleted text begin shall deleted text end new text begin must new text end pay the registrar a fee of
$25 and a sales tax on motor vehicles of $15 per registration year. The registrar deleted text begin shall deleted text end new text begin must new text end
deposit the tax in the state treasury to be credited as provided in section 297B.09.
Replacement plates are subject to the fees in section 168.12. new text begin New or used new text end motor vehicles deleted text begin ,
new or used, deleted text end owned by the motor vehicle dealership and bearing the number plate, except
vehicles leased to deleted text begin the deleted text end new text begin a new text end user who is not an employee of the dealer during the term of the
lease, held for hire, or used by the dealer as a tow truck, service truck, new text begin maintenance vehicle, new text end
or parts vehicle, may be driven upon deleted text begin the deleted text end new text begin Minnesota new text end streets and highways deleted text begin of this state deleted text end :

(1) by the motor vehicle dealer or dealer's spouse, or any full-time employee of the motor
vehicle dealer for either private or business purposes;

(2) by a part-time employee when the use is directly related to a particular business
transaction of the dealer; new text begin or
new text end

(3) for demonstration purposes by any prospective buyer for a period of new text begin no more than new text end
48 hours or in the case of a truck, truck-tractor, or semitrailer, for a period of new text begin no more than new text end
seven days deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (4) in a promotional event that lasts no longer than four days in which at least three
motor vehicles are involved.
deleted text end

new text begin (b) Prior to the demonstration period under paragraph (a), clause (3), a dealer must
confirm the prospective buyer's driver's license is valid by accessing the driver and vehicle
services information system. Dealers must maintain records of each vehicle demonstration.
Demonstration records must include the vehicle identification number, license plate number,
driver or drivers, start date and time, end date and time, and location of the vehicle
demonstration. Demonstration records must be made available to the commissioner for
inspection.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end A new or used motor vehicle sold by the motor vehicle dealer and bearing the
motor vehicle dealer's number plate may be driven upon the public streets and highways
for a period of 72 hours by the buyer deleted text begin for either of the following purposes: (1) removing the
vehicle from this state for registration in another state, or (2) permitting the buyer to use
the motor vehicle deleted text end before the buyer receives number plates pursuant to registration. Use of
a motor vehicle by the buyer deleted text begin under clause (2) deleted text end before the buyer receives number plates
pursuant to registration constitutes a use of the public streets or highways for the purpose
of the time requirements for registration of motor vehicles.

new text begin (d) The registrar may issue two plates displaying a general distinguishing number to a
motor vehicle dealer. The registrar may issue additional plates to the motor vehicle dealer
based on the motor vehicle dealer's inventory as follows:
new text end

new text begin (1) one plate for each of the five vehicles carried in highest inventory up to and including
400 vehicles; and
new text end

new text begin (2) one plate for each of the seven vehicles in excess of 400 vehicles up to a maximum
of 100 plates.
new text end

new text begin (e) A motor vehicle dealer must maintain insurance sufficient to cover the number of
dealer plates issued to the motor vehicle dealer and provide an annual attestation to the
registrar confirming insurance coverage.
new text end

new text begin (f) A motor vehicle dealer must destroy any dealer plate in its possession in excess of
the number the registrar may issue to the dealer under paragraph (d). A motor vehicle dealer
must destroy any dealer plate for which the annual registration fee has not been paid. A
motor vehicle dealer must provide an annual attestation to the registrar confirming the
destruction of excess plates and plates whose registration fee has not been paid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 4.

Minnesota Statutes 2024, section 168.33, subdivision 7, is amended to read:

Subd. 7.

Filing fees; allocations.

(a) In addition to all other statutory fees and taxes:

(1) an $8 filing fee is imposed on every vehicle registration renewal, excluding pro rate
transactions; and

(2) a $12 filing fee is imposed on every other type of vehicle transaction, including motor
carrier fuel licenses under sections 168D.05 and 168D.06, and pro rate transactions.

(b) Notwithstanding paragraph (a):

(1) a filing fee may not be charged for a document returned for a refund or for a correction
of an error made by the Department of Public Safety, a dealer, or a deputy registrar; and

(2) no filing fee or other fee may be charged for the permanent surrender of a title for a
vehicle.

(c) The filing fee must be shown as a separate item on all registration renewal notices
sent out by the commissioner.

(d) The statutory fees and taxes, the filing fees imposed under paragraph (a), and the
surcharge imposed under paragraph (f) may be paid by credit card or debit card. The deputy
registrar may collect a surcharge on the payment made under this paragraph not greater than
the cost of processing a credit card or debit card transaction, in accordance with emergency
rules established by the commissioner of public safety. The surcharge authorized by this
paragraph must be used to pay the cost of processing credit and debit card transactions.

(e) The fees collected under paragraph (a) by the department must be allocated as follows:

(1) of the fees collected under paragraph (a), clause (1):

(i) $6.50 must be deposited in the driver and vehicle services operating account under
section 299A.705, subdivision 1; and

(ii) $1.50 must be deposited in the driver and vehicle services technology account under
section 299A.705, subdivision 3; and

(2) of the fees collected under paragraph (a), clause (2):

(i) $3.50 must be deposited in the general fund;

(ii) $7 must be deposited in the driver and vehicle services operating account under
section 299A.705, subdivision 1; and

(iii) $1.50 must be deposited in the driver and vehicle services technology account under
section 299A.705, subdivision 3.

(f) In addition to all other statutory fees and taxes, a deputy registrar must assess a $1
surcharge on every transaction for which filing fees are collected under this subdivision.
The surcharge authorized by this paragraph must be (1) deposited in the treasury of the
place for which the deputy registrar is appointed, or (2) if the deputy registrar is not a public
official, retained by the deputy registrar. For purposes of this paragraph, a deputy registrar
does not include the commissioner.

new text begin (g) The commissioner must issue payment to a deputy registrar as follows:
new text end

new text begin (1) $2 for paying an account balance;
new text end

new text begin (2) $4 for the following transactions:
new text end

new text begin (i) updating a vehicle's address or the county in which the vehicle is kept;
new text end

new text begin (ii) changing or verifying an address related to the International Registration Plan or the
International Fuel Tax Agreement;
new text end

new text begin (iii) updating contact information for the International Registration Plan or the
International Fuel Tax Agreement;
new text end

new text begin (iv) processing a vehicle that has been sold, donated, or removed from the state; and
new text end

new text begin (v) marking a vehicle as junked;
new text end

new text begin (3) $8 for the following transactions:
new text end

new text begin (i) changing a customer's personal identification number;
new text end

new text begin (ii) adding or removing liens for veterans with a total service-connected disability;
new text end

new text begin (iii) providing a duplicate title;
new text end

new text begin (iv) issuing International Fuel Tax Agreement decals;
new text end

new text begin (v) managing an International Fuel Tax Agreement license; and
new text end

new text begin (vi) administrative review requests; and
new text end

new text begin (4) the amount of the fee established under section 168.33, subdivision 7, paragraph (a),
clause (2), for the following transactions:
new text end

new text begin (i) vehicle renewal for veterans with a total service-connected disability;
new text end

new text begin (ii) plate change for veterans with a total service-connected disability;
new text end

new text begin (iii) correcting or changing title and vehicle details;
new text end

new text begin (iv) issuing a new disability parking certificate;
new text end

new text begin (v) new title and registration for veterans with a total service-connected disability;
new text end

new text begin (vi) transferring title and registration for veterans with a total service-connected disability;
and
new text end

new text begin (vii) replacing plates, stickers, or registration cards.
new text end

new text begin (h) The following transactions for which no filing fee is collected are not eligible for
payment of any kind:
new text end

new text begin (1) collection of another fee type, including but not limited to a record request fee or a
fast track fee;
new text end

new text begin (2) voluntary waiver of a fee by the deputy registrar; and
new text end

new text begin (3) ancillary to a transaction for which a filing fee may be imposed.
new text end

new text begin (i) If the amount appropriated for payments under paragraph (g) is insufficient, the
commissioner must prorate the payments.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025.
new text end

Sec. 5.

Minnesota Statutes 2024, section 168A.10, is amended by adding a subdivision to
read:

new text begin Subd. 7. new text end

new text begin Removal of license plates. new text end

new text begin If an owner transfers interest in a vehicle other than
by the creation of a security interest or as defined in section 297B.01, subdivision 16,
paragraph (c), clauses (1) to (5), the owner must remove the existing license plates from
the vehicle, and the purchaser must, at the time of transfer, obtain new plates for the vehicle
and pay the fees specified in section 168.12, subdivision 5, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2026.
new text end

Sec. 6.

Minnesota Statutes 2024, section 169.14, subdivision 1a, is amended to read:

Subd. 1a.

License revocation for extreme speed.

The driver's license of a person who
violates any speed limit established in this section, by driving in excess of 100 miles per
hour new text begin or 35 miles per hour or more over the posted speed limit new text end , is revoked for six months
under section 171.17, or for a longer minimum period of time applicable under section
169A.53, 169A.54, or 171.174.

Sec. 7.

Minnesota Statutes 2024, section 169.686, subdivision 1, is amended to read:

Subdivision 1.

Seat belt requirement.

(a) Except as provided in section 169.685, a
properly adjusted and fastened seat belt, including both the shoulder and lap belt when the
vehicle is so equipped, deleted text begin shall deleted text end new text begin must new text end be worn by the driver and passengers of a passenger
vehicle, commercial motor vehicle, type III vehicle, and type III Head Start vehicle.
Notwithstanding the equipment exemption in section 169.685, subdivision 1, this paragraph
applies to the driver and passengers of an autocycle equipped with seat belts. new text begin This paragraph
applies to the operator and passengers of a class 2 all-terrain vehicle when operated on or
within the right-of-way of a public road when the all-terrain vehicle is factory-equipped
with seat belts.
new text end

(b) A person who is 15 years of age or older and who violates paragraph (a) is subject
to a fine of $25. The driver of the vehicle in which a violation occurs is subject to a $25
fine for each violation of paragraph (a) by the driver or by a passenger under the age of 15,
but the court may not impose more than one surcharge under section 357.021, subdivision
6, on the driver. The Department of Public Safety deleted text begin shall deleted text end new text begin must new text end not record a violation of this
subdivision on a person's driving record.

(c) The driver of a bus is not subject to the fine under paragraph (b) for a violation of
paragraph (a) by a passenger under the age of 15. This paragraph does not apply to new text begin : new text end (1) a
school bus, including a type III vehicle; and (2) a Head Start bus, including a type III Head
Start vehicle.

Sec. 8.

Minnesota Statutes 2024, section 171.05, subdivision 1, is amended to read:

Subdivision 1.

Person 18 or more years of age.

(a) Any person who is 18 or more years
of age and who, except for a lack of instruction in operating a motor vehicle, would otherwise
be qualified to obtain a class D driver's license under this chapter deleted text begin , deleted text end may apply for an
instruction permit new text begin , new text end and the department deleted text begin shall deleted text end new text begin must new text end issue the permit. The instruction permit
entitles the applicant to drive a motor vehicle for which a class D license is valid upon the
highways for a period of two years if the permit holder:

(1) has the permit in immediate possession; and

(2) is driving the vehicle while accompanied by an adult licensed driver who is actually
occupying a seat beside the driver.

(b) Any license of a lower class may be used as an instruction permit to operate a vehicle
requiring a higher class license for a period of deleted text begin six months deleted text end new text begin one year new text end after passage of the
written test or tests required for the higher class and when the licensee is accompanied by
and receiving instruction from a holder of the appropriate higher class license. A copy of
the record of examination taken for the higher class license must be carried by the driver
while using the lower class license as an instruction permit.

Sec. 9.

Minnesota Statutes 2024, section 171.06, is amended by adding a subdivision to
read:

new text begin Subd. 7a. new text end

new text begin Online renewal. new text end

new text begin (a) For purposes of this subdivision, "applicant" means a
person who renews a REAL ID-compliant or noncompliant driver's license or identification
card or applies for a duplicate card through the department's online renewal system
established in this subdivision.
new text end

new text begin (b) The commissioner must establish a process for an applicant to renew or request a
duplicate of a REAL ID-compliant or noncompliant driver's license or identification card,
whether by website or some other means, as provided in this subdivision. Notwithstanding
subdivision 3, an applicant for a renewal or duplicate driver's license or identification card
submitted through the department's online renewal system may not designate a temporary
mailing address for the delivery of the driver's license or identification card.
new text end

new text begin (c) The commissioner may renew or request a duplicate of a REAL ID-compliant or
noncompliant driver's license or identification card for an individual who does not renew
in person if:
new text end

new text begin (1) there is no change in identity, including any change to the applicant's name, address,
signature, and driver's license or identification card number;
new text end

new text begin (2) the renewal application is not for a different type or class of driver's license or
identification card;
new text end

new text begin (3) the renewal or duplicate application is not for an enhanced driver's license or
identification card;
new text end

new text begin (4) the commissioner has a previous photograph of the applicant on file that was taken
within the last five years or in conjunction with the most recent issuance of the applicant's
current credential;
new text end

new text begin (5) the applicant is at least 18 years of age at the time of the application;
new text end

new text begin (6) the applicant's license or identification card is valid or has been expired for less than
one year;
new text end

new text begin (7) the applicant has not obtained a driving credential or identification card from another
state or jurisdiction since the most recent issuance of the applicant's Minnesota credential;
new text end

new text begin (8) no knowledge or road tests are required to maintain the credential;
new text end

new text begin (9) the applicant submits a vision examination certificate as described in subdivision 7;
and
new text end

new text begin (10) the application is in a form prescribed by the commissioner.
new text end

new text begin (d) The commissioner must use the photograph on file as specified in paragraph (c),
clause (4), for the applicant's REAL ID-compliant or noncompliant driver's license or
identification card.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 10.

Minnesota Statutes 2024, section 171.061, subdivision 4, is amended to read:

Subd. 4.

Fee; equipment.

(a) The agent may charge and retain a filing fee for each
application as follows:

(1)	New application for a noncompliant, REAL ID-compliant, or enhanced driver's license or identification card	$	16.00
(2)	Renewal application for a noncompliant, REAL ID-compliant, or enhanced driver's license or identification card	$	11.00

Except as provided in paragraph (c), the fee must cover all expenses involved in receiving,
accepting, or forwarding to the department the applications and fees required under sections
171.02, subdivision 3; 171.06, subdivisions 2 and 2a; and 171.07, subdivisions 3 and 3a.

(b) The statutory fees and the filing fees imposed under paragraph (a) may be paid by
credit card or debit card. The driver's license agent may collect a convenience fee on the
statutory fees and filing fees not greater than the cost of processing a credit card or debit
card transaction. The convenience fee must be used to pay the cost of processing credit card
and debit card transactions. The commissioner must adopt rules to administer this paragraph
using the exempt procedures of section 14.386, except that section 14.386, paragraph (b),
does not apply.

(c) The department must maintain the photo identification and vision examination
equipment for all agents. All photo identification and vision examination equipment must
be compatible with standards established by the department.

(d) A filing fee retained by the agent employed by a county board must be paid into the
county treasury and credited to the general revenue fund of the county. An agent who is not
an employee of the county must retain the filing fee in lieu of county employment or salary
and is considered an independent contractor for pension purposes, coverage under the
Minnesota State Retirement System, or membership in the Public Employees Retirement
Association.

(e) Before the end of the first working day following the final day of the reporting period
established by the department, the agent must forward to the department all applications
and fees collected during the reporting period except as provided in paragraph (d).

new text begin (f) The commissioner must issue payment to a driver's license agent as follows:
new text end

new text begin (1) $2 for paying an account balance;
new text end

new text begin (2) $4 for the following transactions:
new text end

new text begin (i) correcting credentials for veterans with a total service-connected disability, homeless
fee, and those with reduced-fee credentials; and
new text end

new text begin (ii) payment of reinstatement fees for veterans with a total service-connected disability
and homeless youth;
new text end

new text begin (3) $8 for the following transactions:
new text end

new text begin (i) changing a customer's personal identification number; and
new text end

new text begin (ii) mail-in application photograph renewal; and
new text end

new text begin (4) the amount of the fee established under section 168.33, subdivision 7, paragraph (a),
clause (2), for the following transactions:
new text end

new text begin (i) addition of court order review;
new text end

new text begin (ii) paper temporary receipt of application permit for veterans with a total
service-connected disability; and
new text end

new text begin (iii) issuing a credential for veterans with a total service-connected disability, homeless
youth, and those with reduced-fee credentials.
new text end

new text begin (g) The following transactions for which no filing fee is collected are not eligible for
payment of any kind:
new text end

new text begin (1) collection of another fee type, including but not limited to a record request fee or a
fast track fee;
new text end

new text begin (2) voluntary waiver of a fee by the driver's license agent; and
new text end

new text begin (3) ancillary to a transaction for which a filing fee may be imposed.
new text end

new text begin (h) If the amount appropriated for payments under paragraph (f) is insufficient, the
commissioner must prorate the payments.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025.
new text end

Sec. 11.

Minnesota Statutes 2024, section 171.306, subdivision 8, is amended to read:

Subd. 8.

Rulemaking.

deleted text begin In establishing deleted text end new text begin The commissioner must adopt new text end the performance
standards and certification process of subdivision 2 deleted text begin , deleted text end new text begin and new text end the program guidelines of
subdivision 3 deleted text begin , deleted text end new text begin as rules new text end and any other rules necessary to implement this section, deleted text begin the
commissioner is deleted text end subject to chapter 14.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2024, section 174.02, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Emissions reduction goals; financial assistance. new text end

new text begin The commissioner may
provide grants or other financial assistance at the commissioner's discretion pursuant to
grant requirements under state law to meet the state's goals under subdivision 1a, clause
(3), or section 216H.02.
new text end

Sec. 13.

Minnesota Statutes 2024, section 174.38, subdivision 4, is amended to read:

Subd. 4.

Program administration.

(a) The commissioner must establish active
transportation program requirements, including:

(1) assistance eligibility, subject to the requirements under subdivision 5;

(2) a solicitation and application process that minimizes the burden on applicants; and

(3) procedures to award and pay financial assistance.

(b) The commissioner must deleted text begin annually deleted text end conduct deleted text begin a solicitation deleted text end new text begin solicitations new text end for active
transportation projects under the program.

(c) The commissioner must make reasonable efforts to publicize each application
solicitation among all eligible recipients. The commissioner must assist applicants to create
and submit applications, with an emphasis on providing assistance in communities that are
historically and currently underrepresented in local or regional planning, including
communities of color, low-income households, people with disabilities, and people with
limited English proficiency.

(d) The commissioner may provide grants or other financial assistance for a project.

(e) The commissioner is prohibited from expending more than one percent of available
funds in a fiscal year under this section on program administration.

Sec. 14.

Minnesota Statutes 2024, section 299A.01, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Grant contracts and programs; administrative costs. new text end

new text begin (a) Notwithstanding
any other law to the contrary, unless money is otherwise appropriated for administrative
costs, the department may retain the following percentages of a grant appropriation for staff
and related operating costs for grant administration:
new text end

new text begin (1) five percent for grants enacted by the legislature, single or sole source grants, and
formula grants; and
new text end

new text begin (2) ten percent for competitively awarded grants.
new text end

new text begin (b) This subdivision applies to all new and existing grant programs administered by the
department.
new text end

new text begin (c) This subdivision does not apply to grants funded with an appropriation of proceeds
from the sale of state general obligation bonds.
new text end

Sec. 15.

Minnesota Statutes 2024, section 360.511, is amended by adding a subdivision
to read:

new text begin Subd. 22a. new text end

new text begin Coordinated unmanned aerial system fleet event for entertainment
purposes. new text end

new text begin "Coordinated unmanned aerial system fleet event for entertainment purposes"
means a one-day event involving a group of unmanned aerial systems flying together as a
unified and coordinated entity to accomplish a shared entertainment objective, including
but not limited to choreographed flight patterns, synchronized lighting, and music for visual
displays.
new text end

Sec. 16.

Minnesota Statutes 2024, section 360.531, subdivision 2, is amended to read:

Subd. 2.

Rate.

The tax shall be as follows:

Base Price		Tax
Not over $500,000		deleted text begin $100 deleted text end new text begin $115 new text end
over $500,000 but not over $1,000,000		deleted text begin $200 deleted text end new text begin $230 new text end
over $1,000,000 but not over $2,500,000		deleted text begin $2,000 deleted text end new text begin $2,300 new text end
over $2,500,000 but not over $5,000,000		deleted text begin $4,000 deleted text end new text begin $4,600 new text end
over $5,000,000 but not over $7,500,000		deleted text begin $7,500 deleted text end new text begin $8,625 new text end
over $7,500,000 but not over $10,000,000		deleted text begin $10,000 deleted text end new text begin $11,500 new text end
over $10,000,000 but not over $12,500,000		deleted text begin $12,500 deleted text end new text begin $14,375 new text end
over $12,500,000 but not over $15,000,000		deleted text begin $15,000 deleted text end new text begin $17,250 new text end
over $15,000,000 but not over $17,500,000		deleted text begin $17,500 deleted text end new text begin $20,125 new text end
over $17,500,000 but not over $20,000,000		deleted text begin $20,000 deleted text end new text begin $23,000 new text end
over $20,000,000 but not over $22,500,000		deleted text begin $22,500 deleted text end new text begin $25,875 new text end
over $22,500,000 but not over $25,000,000		deleted text begin $25,000 deleted text end new text begin $28,750 new text end
over $25,000,000 but not over $27,500,000		deleted text begin $27,500 deleted text end new text begin $31,625 new text end
over $27,500,000 but not over $30,000,000		deleted text begin $30,000 deleted text end new text begin $34,500 new text end
over $30,000,000 but not over $40,000,000		deleted text begin $50,000 deleted text end new text begin $57,500 new text end
over $40,000,000		deleted text begin $75,000 deleted text end new text begin $86,250 new text end

Sec. 17.

Minnesota Statutes 2024, section 360.55, subdivision 4, is amended to read:

Subd. 4.

Collector's aircraft.

(a) For purposes of this subdivision:

(1) "antique aircraft" means an aircraft constructed by the original manufacturer, or its
licensee, on or before December 31, 1945, with the exception of certain pre-World War II
aircraft models that had only a small postwar production, such as Beechcraft Staggerwing,
Fairchild 24, and Monocoupe; and

(2) "classic aircraft" means an aircraft constructed by the original manufacturer, or its
licensee, on or after January 1, 1946, and has a first year of life that precedes the date of
registration by at least 50 years.

(b) If an antique or classic aircraft is owned and operated solely as a collector's item, its
owner may list it for taxation and registration deleted text begin as follows: deleted text end new text begin under this paragraph. new text end A sworn
affidavit must be executed stating new text begin :
new text end

(1) the name and address of the owner deleted text begin , deleted text end new text begin ;
new text end

(2) the name and address of the deleted text begin person from whom purchased, deleted text end new text begin seller;
new text end

(3) the aircraft's make, year, model number, federal aircraft registration number, and
manufacturer's identification number deleted text begin , deleted text end new text begin ; new text end and

(4) that the aircraft is owned and operated solely as a collector's item and not for general
transportation or commercial operations purposes.

The affidavit must be filed with the commissioner along with deleted text begin a deleted text end new text begin an annual new text end fee of $25.

(c) Upon satisfaction that the affidavit is true and correct, the commissioner deleted text begin shall deleted text end new text begin must new text end
issue to the applicant a registration certificate. The registration certificate is valid deleted text begin without
renewal as long as deleted text end new text begin for one year from the date of issue, provided new text end the owner deleted text begin operates deleted text end new text begin continues
to operate new text end the aircraft solely as a collector's item.

(d) deleted text begin Should deleted text end new text begin If new text end an antique or classic aircraft deleted text begin be deleted text end new text begin is new text end operated other than as a collector's item,
the registration certificate deleted text begin becomes deleted text end new text begin is new text end void new text begin , new text end and the owner deleted text begin shall deleted text end new text begin must new text end list the aircraft for
taxation and registration in accordance with the other provisions of sections 360.511 to
360.67.

deleted text begin (e) Upon the sale of an antique or classic aircraft, the new owner must list the aircraft
for taxation and registration in accordance with this subdivision, including the payment of
a $5 fee to transfer the registration to the new owner, or the other provisions of sections
360.511 to 360.67, whichever is applicable.
deleted text end

Sec. 18.

Minnesota Statutes 2024, section 360.55, subdivision 4a, is amended to read:

Subd. 4a.

Recreational aircraft; classic license.

(a) An aircraft that has a base price
for tax purposes under section 360.531 of $10,000 or less deleted text begin , deleted text end and deleted text begin that deleted text end is owned and operated
solely for recreational purposes, deleted text begin may deleted text end new text begin must new text end be listed for taxation and registration by executing
deleted text begin a deleted text end new text begin an annual new text end sworn affidavit stating new text begin :
new text end

(1) the name and address of the owner deleted text begin , deleted text end new text begin ;
new text end

(2) the name and address of the deleted text begin person from whom purchased, deleted text end new text begin seller;
new text end

(3) the aircraft's make, year, model number, federal aircraft registration number, and
manufacturer's identification number deleted text begin , deleted text end new text begin ; new text end and

(4) that the aircraft is owned and operated solely as a recreational aircraft and not for
commercial operational purposes.

The affidavit must be filed with the commissioner along with deleted text begin an annual deleted text end new text begin a registration fee
of new text end $25 deleted text begin fee deleted text end .

new text begin (b) An annual fee of $25 is required for registration renewal.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end On being satisfied that the affidavit is true and correct, the commissioner deleted text begin shall deleted text end new text begin
must new text end issue to the applicant a registration certificate.

deleted text begin (c) Should deleted text end new text begin (d) If new text end the aircraft deleted text begin be deleted text end new text begin is new text end operated other than as a recreational aircraft, the owner
deleted text begin shall deleted text end new text begin must new text end list the aircraft for taxation and registration and pay the appropriate registration
fee under sections 360.511 to 360.67.

deleted text begin (d) deleted text end new text begin (e) new text end If the aircraft is sold, the new owner deleted text begin shall deleted text end new text begin must new text end list the aircraft for taxation and
registration under this subdivision, including the payment of the annual $25 fee, or under
sections 360.511 to 360.67, whichever is applicable.

Sec. 19.

Minnesota Statutes 2024, section 360.55, subdivision 9, is amended to read:

Subd. 9.

Small unmanned deleted text begin aircraft deleted text end new text begin aerial new text end systems.

(a) Any small unmanned deleted text begin aircraft deleted text end new text begin
aerial new text end system in which the unmanned deleted text begin aircraft deleted text end new text begin aerial system new text end weighs less than 55 pounds at
takeoff, including payload and anything affixed to the deleted text begin aircraft deleted text end new text begin aerial system new text end , either:

(1) must be registered in the state for an annual fee of $25; or

(2) is not subject to registration or an annual fee if the unmanned deleted text begin aircraft deleted text end new text begin aerial new text end system
is owned and operated solely for recreational purposes.

(b) An unmanned deleted text begin aircraft deleted text end new text begin aerial new text end system that meets the requirements under paragraph (a)
is exempt from aircraft registration tax under sections 360.511 to 360.67.

Sec. 20.

Minnesota Statutes 2024, section 360.55, is amended by adding a subdivision to
read:

new text begin Subd. 10. new text end

new text begin Coordinated unmanned aerial system fleets. new text end

new text begin (a) An operator planning to
conduct a coordinated unmanned aerial system fleet event for entertainment purposes, as
defined in section 360.511, subdivision 22a, must register the fleet at least 15 days before
the event.
new text end

new text begin (b) The registration under this subdivision must include:
new text end

new text begin (1) the name and contact information of the event organizer;
new text end

new text begin (2) the date, time, and location of the event;
new text end

new text begin (3) the number of unmanned aerial systems to be used;
new text end

new text begin (4) proof of liability insurance for the unmanned aerial systems;
new text end

new text begin (5) a copy of the operator's unmanned aerial systems pilot's license; and
new text end

new text begin (6) a copy of the commercial operator's license.
new text end

new text begin (c) A daily registration fee of $2 per unmanned aerial system used in the fleet applies
to fleets registered under this subdivision. This fee is in lieu of the registration fee in
subdivision 9. Fleets registered under this subdivision are exempt from the aircraft registration
tax under sections 360.511 to 360.67.
new text end

Sec. 21.

Minnesota Statutes 2024, section 360.55, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Aircraft used for air ambulance service. new text end

new text begin Aircraft licensed under section
144E.12 and used exclusively to provide air ambulance service are subject to the tax provided
by sections 360.511 to 360.67, except that any registration or tax imposed by sections
360.511 to 360.67 must not exceed $1,000 annually.
new text end

Sec. 22.

Minnesota Statutes 2024, section 360.653, is amended to read:

360.653 AIRCRAFT REGISTRATION AND TAX EXEMPTIONS.

The following aircraft, under the conditions specified, deleted text begin shall be deleted text end new text begin are new text end exempt from the
registration and the tax provided by sections 360.511 to 360.67 deleted text begin . deleted text end new text begin :
new text end

(1) any aircraft held by a dealer listed and used as provided in section 360.63, except
that aircraft held by dealers on October 1, of each year, deleted text begin shall deleted text end new text begin must new text end be registered and the
entire tax provided by sections 360.511 to 360.67 deleted text begin shall deleted text end new text begin must new text end be paid for the portion of the
fiscal year, prorated on a monthly basis remaining after the aircraft came into the possession
of the dealer. deleted text begin It is further provided that deleted text end A dealer who has previously had aircraft on
withholding may register deleted text begin such deleted text end new text begin the new text end aircraft in September of each fiscal year by payment of
an amount equal to one-third of the annual tax, which deleted text begin tax shall be deleted text end new text begin is new text end applicable for the
months of September through December new text begin , new text end and in January new text begin , new text end the dealer may again list these
aircraft on the dealer's withholding form deleted text begin . deleted text end new text begin ;
new text end

(2) aircraft remaining in the possession of aircraft manufacturers ten months after
completion deleted text begin shall become deleted text end new text begin are new text end subject to the tax provided by sections 360.511 to 360.67. The
tax deleted text begin shall be deleted text end new text begin is new text end computed from the expiration of the ten months period and deleted text begin shall be deleted text end new text begin is new text end prorated
on a monthly basis deleted text begin . deleted text end new text begin ; and
new text end

(3) aircraft while in the hands of aircraft refitters for the purpose of being refitted or
modified or both, and while being refitted or modified or both.

deleted text begin (4) Aircraft licensed under section 144E.12 and used exclusively to provide air ambulance
service.
deleted text end

Sec. 23.

Minnesota Statutes 2024, section 473.408, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Transit service for certified disabled riders. new text end

new text begin The council must provide
regular route transit, as defined in section 473.385, subdivision 1, free of charge to an
individual who is:
new text end

new text begin (1) certified as disabled under the Americans with Disabilities Act requirements of the
Federal Transit Administration; or
new text end

new text begin (2) certified by the council under section 473.386, subdivision 2a.
new text end

new text begin (b) The requirements under this subdivision apply to operators of regular route transit
receiving financial assistance under section 473.388 or operating under section 473.405,
subdivision 12.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective July 1, 2025, and
applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 24.

Minnesota Statutes 2024, section 473.4465, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Use of funds; Metropolitan Council; loan authorized. new text end

new text begin From the amounts
in subdivision 2, paragraph (a), clause (2), the council is authorized to loan to the Department
of Transportation up to $250,000,000 to advance and coordinate highway construction with
one major transitway project in the metropolitan area. Funds may be used for any costs
related to the selected project, including but not limited to construction, engineering, and
administration. The loan agreement, including repayment terms, must be mutually agreed
to by the council and the Department of Transportation.
new text end