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HF 3

1st Engrossment - 90th Legislature, 2017 1st Special Session (2017 - 2017) Posted on 06/21/2017 11:01am

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Engrossments
Introduction Pdf Posted on 05/24/2017
1st Engrossment Pdf Posted on 05/31/2017

Current Version - 1st Engrossment

A bill for an act
relating to transportation; establishing a budget for transportation; appropriating
money for transportation purposes, including Department of Transportation,
Metropolitan Council, and Department of Public Safety activities; modifying
various provisions governing transportation policy and finance; allocating certain
sales and use tax revenue; establishing accounts; requiring reports; making technical
changes; authorizing sale and issuance of state bonds; amending Minnesota Statutes
2016, sections 53C.01, subdivision 2; 85.016; 117.189; 160.02, subdivision 27,
by adding subdivisions; 160.18, by adding a subdivision; 160.262, subdivisions
1, 3, 4; 160.266, subdivisions 3, 4, 5, by adding subdivisions; 161.04, subdivision
5; 161.081, subdivision 3; 161.088, subdivisions 4, 5, 7; 161.115, subdivision 190;
161.14, by adding a subdivision; 161.21, subdivision 1; 161.321, subdivision 6;
161.38, by adding a subdivision; 161.44, subdivisions 5, 6a, by adding a
subdivision; 168.013, subdivision 1a, by adding a subdivision; 168.021,
subdivisions 1, 2, 2a; 168.27, by adding a subdivision; 168.33, subdivision 2;
168A.09, subdivision 1; 168A.141; 168A.142; 169.011, subdivisions 34, 47, by
adding a subdivision; 169.14, by adding a subdivision; 169.18, subdivisions 5, 7;
169.224, subdivision 3; 169.345, subdivisions 1, 3; 169.442, subdivision 5; 169.443,
subdivision 2; 169.444, subdivision 2; 169.449, subdivision 1; 169.4501,
subdivisions 1, 2; 169.4503, subdivisions 4, 7, 14, 23, 30; 169.64, subdivision 8;
169.80, subdivision 1; 169.829, by adding a subdivision; 169.864, subdivisions 3,
4, by adding a subdivision; 169.865, subdivision 3; 171.02, subdivision 2b; 171.06,
subdivision 2a; 171.061, subdivision 3, as amended; 171.12, subdivision 6; 173.02,
subdivisions 18, 23, by adding subdivisions; 173.06, subdivision 1; 173.07,
subdivision 1; 173.08, by adding subdivisions; 173.13, subdivision 11; 173.16, by
adding subdivisions; 174.03, subdivisions 1a, 1c; 174.50, subdivisions 5, 6b, 6c,
7, by adding a subdivision; 174.56, by adding a subdivision; 174.93; 221.031, by
adding a subdivision; 222.49; 222.50, subdivision 6; 256B.15, subdivision 1a, as
amended; 297A.815, subdivision 3; 297A.94; 297A.992, by adding a subdivision;
297B.01, subdivision 16; 299D.03, subdivision 6; 398A.10, subdivisions 3, 4;
473.121, subdivision 2; 473.388, subdivision 4, by adding a subdivision; 473.39,
by adding a subdivision; 473.4051, subdivision 2; 473.857, subdivision 2; proposing
coding for new law in Minnesota Statutes, chapters 160; 168; 168A; 169; 173;
174; 473; repealing Minnesota Statutes 2016, sections 160.262, subdivision 2;
160.265; 160.266, subdivisions 1, 2; 161.115, subdivision 32; 165.15, subdivision
8; 169.4502, subdivision 5; 219.375, subdivision 4; Minnesota Rules, parts
8810.0800, subpart 3; 8810.1300, subpart 4; 8810.6000; 8810.6100; 8810.6300;
8810.6400; 8810.6500; 8810.6600; 8810.6700; 8810.6800; 8810.6900; 8810.7000;
8810.9910; 8810.9911; 8810.9912; 8810.9913.

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

ARTICLE 1

TRANSPORTATION APPROPRIATIONS

Section 1. TRANSPORTATION APPROPRIATIONS

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 the second year under "Appropriations by Fund" show the base
within the meaning of Minnesota Statutes, section 16A.11, subdivision 3, by fund. The
figures "2018" and "2019" used in this article mean that the appropriations listed under them
are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The
first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" is
fiscal years 2018 and 2019.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. DEPARTMENT OF
TRANSPORTATION

Subdivision 1.

Total Appropriation

$
2,949,912,000
$
2,868,755,000
Appropriations by Fund
2018
2019
General
19,783,000
34,508,000
Airports
34,812,000
21,909,000
C.S.A.H.
762,071,000
789,636,000
M.S.A.S.
190,660,000
197,558,000
Trunk Highway
1,942,586,000
1,825,144,000

The appropriations in this section are to the
commissioner of transportation. The amounts
that may be spent for each purpose are
specified in the following subdivisions.

Subd. 2.

Multimodal Systems

(a) Aeronautics

(1) Airport Development and Assistance
26,001,000
16,598,000

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

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.

$6,619,000 in the first year is for a grant to
the Duluth Airport Authority for
improvements at the Duluth International
Airport and the Sky Harbor Airport in
accordance with Minnesota Statutes, section
360.017. For the purposes of this
appropriation, the commissioner may waive
the requirements of Minnesota Statutes,
section 360.305, subdivision 4, paragraph (b).
This appropriation may be used to reimburse
the Authority for costs incurred after March
1, 2015. This is a onetime appropriation.

$2,334,000 in the first year is for a grant to
the city of Rochester for improvements to the
passenger terminal building at the Rochester
International Airport in accordance with
Minnesota Statutes, section 360.017. For the
purposes of this appropriation, the
commissioner of transportation may waive the
requirements of Minnesota Statutes, section
360.305, subdivision 4, paragraph (b). This
appropriation may be used to reimburse the
city for costs incurred after May 1, 2016. This
is a onetime appropriation.

Notwithstanding Minnesota Statutes, section
360.017, $250,000 in the first year is for a
grant to the city of St. Cloud for an air
transport optimization planning study for the
St. Cloud Regional Airport. The study must
be comprehensive and market-based, using
economic development and air service
expertise to research, analyze, and develop
models and strategies that maximize the return
on investments made to enhance the use and
impact of the St. Cloud Regional Airport. By
January 5, 2018, the city of St. Cloud shall
submit a report to the governor and the
members and staff of the legislative
committees with jurisdiction over capital
investment, transportation, and economic
development with recommendations based on
the findings of the study. This is a onetime
appropriation.

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 2020 and 2021.

The base is $15,298,000 in each of fiscal years
2020 and 2021.

(2) Aviation Support and Services
6,710,000
6,854,000
Appropriations by Fund
2018
2019
Airports
5,231,000
5,231,000
Trunk Highway
1,479,000
1,623,000
(3) Civil Air Patrol
3,580,000
80,000

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

$3,500,000 in the first year is for a grant to
renovate a portion of and construct an addition
to the training and maintenance facility located
at the South St. Paul airport, and to furnish
and equip the facility, including
communications equipment. Notwithstanding
Minnesota Statutes, section 16A.28,
subdivision 6, this appropriation is available
for five years after the year of the
appropriation. This is a onetime appropriation.

(b) Transit
1,416,000
18,268,000
Appropriations by Fund
2018
2019
General
570,000
17,395,000
Trunk Highway
846,000
873,000

$150,000 in each year is from the general fund
for grants to transportation management
organizations that provide services exclusively
or primarily in the city located along the
marked Interstate Highway 494 corridor
having the highest population as of the
effective date of this section. The
commissioner must not retain any portion of
the funds appropriated under this section.
From the appropriation in each fiscal year, the
commissioner must make grant payments in
full by July 31. Permissible uses of funds
under this grant include administrative
expenses and programming and service
expansion, including but not limited to
staffing, communications, outreach and
education program development, and
operations management. This is a onetime
appropriation.

The base from the general fund is $17,245,000
in each year for fiscal years 2020 and 2021.

(c) Safe Routes to School
500,000
500,000

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

(d) Passenger Rail
500,000
500,000

This appropriation is from the general fund
for passenger rail system planning, alternatives
analysis, environmental analysis, design, and
preliminary engineering under Minnesota
Statutes, sections 174.632 to 174.636.

(e) Freight

Freight and Commercial Vehicle Operations
8,506,000
6,578,000
Appropriations by Fund
2018
2019
General
3,156,000
1,056,000
Trunk Highway
5,350,000
5,522,000

$1,100,000 in the first year is from the general
fund for port development assistance grants
under Minnesota Statutes, chapter 457A, to
the city of Red Wing and to the Port Authority
of Winona. Any improvements made with the
proceeds of the grants must be publicly owned.
This is a onetime appropriation and is
available in the second year.

$800,000 in each year is from the general fund
for additional rail safety and rail service
activities.

$1,000,000 in the first year is from the general
fund for a grant to the city of Grand Rapids to
fund rail planning studies, design, and
preliminary engineering relating to the
construction of a freight rail line located in the
counties of Itasca, St. Louis, and Lake to serve
local producers and shippers. The city of
Grand Rapids shall collaborate with the Itasca
Economic Development Corporation and the
Itasca County Regional Railroad Authority in
the activities funded with the proceeds of this
grant. This is a onetime appropriation and is
available until June 30, 2019.

Subd. 3.

State Roads

(a) Operations and Maintenance
340,475,000
329,435,000

The base is $317,102,000 in fiscal year 2020
and $310,889,000 in fiscal year 2021.

(b) Program Planning and Delivery
(1) Planning and Research
34,107,000
32,403,000

If a balance remains of this appropriation, the
commissioner may transfer up to that amount
for program delivery under clause (2).

Up to $600,000 in the first year is for the
highway construction costs and cost inflation
study under article 3, section 133. This is a
onetime appropriation.

$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:

(1) to regional development commissions;

(2) 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

(3) in regions where no regional development
commission or joint powers board is
functioning, to the Department of
Transportation district office for that region.

The base is $31,375,000 in fiscal year 2020
and $30,858,000 in fiscal year 2021.

(2) Program Delivery
229,148,000
222,845,000

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

Up to $140,000 in the first year is for
development, implementation, and reporting
on project selection policy under article 3,
section 124. This is a onetime appropriation.

$1,000,000 in each year is available 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.

The base is $214,623,000 in fiscal year 2020
and $210,481,000 in fiscal year 2021.

(c) State Road Construction
1,003,010,000
884,101,000

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 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 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 is $864,295,000 in fiscal year 2020
and $849,282,000 in fiscal year 2021.

(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 each year for program delivery.

(e) Highway Debt Service
224,079,000
242,325,000

$214,579,000 in fiscal year 2018 and
$232,825,000 in fiscal year 2019 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
under the statutory open appropriation 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
5,648,000
5,829,000
Appropriations by Fund
2018
2019
General
3,000
3,000
Trunk Highway
5,645,000
5,826,000

$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.

Subd. 4.

Local Roads

(a) County State-Aid Roads
769,071,000
796,636,000
Appropriations by Fund
2018
2019
C.S.A.H.
762,071,000
789,636,000
General
7,000,000
7,000,000

The appropriation from the county state-aid
highway fund is under Minnesota Statutes,
sections 161.081 and 297A.815, subdivision
3, and chapter 162, and is available until June
30, 2027.

$5,000,000 in each year is from the general
fund for distribution to counties in the
metropolitan area, as defined in Minnesota
Statutes, section 473.121, subdivision 4, for
construction, reconstruction, and maintenance
of county highways, including county state-aid
highways. The distribution must be calculated
so that each county receives from this amount
the percentage that its population, as defined
in Minnesota Statutes, section 477A.011,
subdivision 3, estimated or established by July
15 of the year prior to the current calendar
year, bears to the total population of the
counties receiving funds under this rider. For
purposes of this rider, the population of each
county containing a statutory or home rule
charter city of the first class is calculated at
0.25 multiplied by that county's population as
otherwise determined. All projects must be
located outside cities of the first class. This is
a onetime appropriation.

$2,000,000 in each year is from the general
fund for town roads, to be distributed in the
manner provided under Minnesota Statutes,
section 162.081. This is a onetime
appropriation.

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 shall 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
commissioner shall identify in the next budget
submission to the legislature under Minnesota
Statutes, section 16A.11, any amount that is
appropriated under this paragraph.

(b) Municipal State-Aid Roads
190,660,000
197,558,000

This appropriation is from the municipal
state-aid street fund under Minnesota Statutes,
chapter 162, and is available until June 30,
2027.

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 shall 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 commissioner shall identify
in the next budget submission to the legislature
under Minnesota Statutes, section 16A.11, any
amount that is appropriated under this
paragraph.

(c) Small Cities Assistance
8,000,000
8,000,000

This appropriation is from the general fund
for the small cities assistance program under
Minnesota Statutes, section 162.145. This is
a onetime appropriation.

Subd. 5.

Agency Management

(a) Agency Services
44,316,000
45,206,000
(b) Buildings
28,585,000
29,439,000
Appropriations by Fund
2018
2019
General
54,000
54,000
Trunk Highway
28,531,000
29,385,000

Any money appropriated to the commissioner
of transportation for building construction for
any fiscal year before the first year 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.

(c) Tort Claims
600,000
600,000

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

Subd. 6.

Transfers

(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.

(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 paragraph.

(c) The commissioner of transportation must
transfer from the flexible highway account in
the county state-aid highway fund the entire
amount in each year to the county turnback
account in the county state-aid highway fund.
The funds transferred are for highway
turnback purposes under Minnesota Statutes,
section 161.081, subdivision 3.

Subd. 7.

Previous State Road Construction
Appropriations

Any money appropriated to the commissioner
of transportation for state road construction
for any fiscal year before the first year is
available to the commissioner during the
biennium to the extent that the commissioner
spends the money on the state road
construction project for which the money was
originally encumbered during the fiscal year
for which it was appropriated.

Subd. 8.

Contingent Appropriations

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 that takes advantage of an
unanticipated receipt of income to the trunk
highway fund or federal advanced construction
funding;

(2) for emergency trunk highway maintenance;
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.

Sec. 3. METROPOLITAN COUNCIL

$
121,031,000
$
129,820,000

This appropriation is from the general fund
for transit system operations under Minnesota
Statutes, sections 473.371 to 473.449.

$1,000,000 in the first year is for financial
assistance to replacement service providers
under Minnesota Statutes, section 473.388,
for the purposes of the suburb-to-suburb transit
demonstration project authorized under Laws
2015, chapter 75, article 1, section 4. The
council must not retain any portion of the
funds under this appropriation. This is a
onetime appropriation.

Up to $211,000 in the first year is for the
comprehensive transit finance report under
Minnesota Statutes, section 174.93. This is a
onetime appropriation and is available in the
second year.

The base is $89,820,000 in fiscal year 2020
and $89,820,000 in fiscal year 2021.

Sec. 4. DEPARTMENT OF PUBLIC SAFETY

Subdivision 1.

Total Appropriation

$
199,838,000
$
199,407,000
Appropriations by Fund
2018
2019
General
19,971,000
14,381,000
Special Revenue
63,945,000
65,087,000
H.U.T.D.
10,474,000
10,486,000
Trunk Highway
105,448,000
109,453,000

The appropriations in this section are to the
commissioner of public safety. The amounts
that may be spent for each purpose are
specified in the following subdivisions.

Subd. 2.

Administration and Related Services

(a) Office of Communications
553,000
573,000
Appropriations by Fund
2018
2019
General
127,000
130,000
Trunk Highway
426,000
443,000
(b) Public Safety Support
6,372,000
6,569,000
Appropriations by Fund
2018
2019
General
1,225,000
1,235,000
H.U.T.D.
1,366,000
1,366,000
Trunk Highway
3,781,000
3,968,000
(c) Public Safety Officer Survivor Benefits
640,000
640,000

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.

(d) Public Safety Officer Reimbursements
1,367,000
1,367,000

This appropriation is from the general fund to
be deposited in the public safety officer's
benefit account. This money is available for
reimbursements under Minnesota Statutes,
section 299A.465.

(e) Soft Body Armor Reimbursements
700,000
700,000
Appropriations by Fund
2018
2019
General
600,000
600,000
Trunk Highway
100,000
100,000

This appropriation is for soft body armor
reimbursements under Minnesota Statutes,
section 299A.38.

(f) Technology and Support Service
3,777,000
3,814,000
Appropriations by Fund
2018
2019
General
1,353,000
1,365,000
H.U.T.D.
19,000
19,000
Trunk Highway
2,405,000
2,430,000

Subd. 3.

State Patrol

(a) Patrolling Highways
95,689,000
93,323,000
Appropriations by Fund
2018
2019
General
5,787,000
37,000
H.U.T.D.
92,000
92,000
Trunk Highway
89,810,000
93,194,000

$5,750,000 from the general fund in the first
year is to purchase a helicopter for the State
Patrol. This is a onetime appropriation.

From this appropriation, State Patrol trainee
salaries as provided under Minnesota Statutes,
section 299D.03, subdivision 6, must be
provided as follows: (1) for trainees in the Law
Enforcement Training Opportunity program,
80 percent of the basic salary for patrol
officers; and (2) for all other trainees, 100
percent of the basic salary.

(b) Commercial Vehicle Enforcement
8,455,000
8,826,000
(c) Capitol Security
8,402,000
8,537,000

This appropriation is from the general fund.

The commissioner must not:

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

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

The commissioner must not transfer any
money appropriated to the commissioner under
this section:

(1) to capitol security; or

(2) from capitol security.

(d) Vehicle Crimes Unit
761,000
773,000

This appropriation is from the highway user
tax distribution fund.

This appropriation is to investigate:

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

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

Subd. 4.

Driver and Vehicle Services

(a) Vehicle Services
30,745,000
31,159,000
Appropriations by Fund
2018
2019
Special Revenue
22,509,000
22,923,000
H.U.T.D.
8,236,000
8,236,000

The special revenue fund appropriation is from
the vehicle services operating account.

(b) Driver Services
32,014,000
32,725,000

This appropriation is from the driver services
operating account in the special revenue fund.

$156,000 in each year is to maintain the
automated knowledge test system.

(c) Minnesota Licensing and Registration System
(MNLARS)
8,000,000
8,000,000

This appropriation is for operations and
maintenance of the driver and vehicle
information system known as the Minnesota
Licensing and Registration System.

$1,000,000 in the first year and $5,265,000 in
the second year are from the driver services
operating account in the special revenue fund.
This is a onetime appropriation.

$7,000,000 in the first year and $2,735,000 in
the second year are from the vehicle services
operating account in the special revenue fund.
This is a onetime appropriation.

Subd. 5.

Traffic Safety

941,000
962,000
Appropriations by Fund
2018
2019
General
470,000
470,000
Trunk Highway
471,000
492,000

The appropriation from the general fund in
each year is for maintenance of the crash
record system.

Subd. 6.

Pipeline Safety

1,422,000
1,439,000

This appropriation is from the pipeline safety
account in the special revenue fund.

Sec. 5. APPROPRIATION CANCELLATION.

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

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6. APPROPRIATIONS BUDGET.

(a) In the budget submission to the legislature under Minnesota Statutes, section 16A.11,
for fiscal years 2020 and 2021, the commissioner of transportation, and the commissioner
of public safety with respect to the transportation portion of the public safety budget, must
present budget narratives and proposed appropriations for each appropriation established
in sections 2 and 4.

(b) In the budget submission to the legislature under Minnesota Statutes, section 16A.11,
for fiscal years 2020 and 2021, the metropolitan council must present budget narratives and
the proposed appropriations, if any, for each of the following categories: metro mobility,
contracted bus service, regular route bus service, light rail transit, commuter rail,
transportation planning, and allocation to the regional administration.

ARTICLE 2

TRANSPORTATION BONDS

Section 1. BOND APPROPRIATIONS.

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

SUMMARY
Department of Transportation
$
940,000,000
Department of Management and Budget
940,000
TOTAL
$
940,940,000
APPROPRIATIONS

Sec. 2. DEPARTMENT OF
TRANSPORTATION

Subdivision 1.

Corridors of Commerce

$
300,000,000

This appropriation is to the commissioner of
transportation for the corridors of commerce
program under Minnesota Statutes, section
161.088, and is available in amounts of:

(1) $50,000,000 in fiscal year 2018;

(2) $50,000,000 in fiscal year 2019;

(3) $100,000,000 in fiscal year 2020; and

(4) $100,000,000 in fiscal year 2021.

The commissioner may use up to 17 percent
of the amount each year for program delivery.

Subd. 2.

State Road Construction

$
640,000,000

This appropriation is to the commissioner of
transportation for construction, reconstruction,
and improvement of trunk highways, including
design-build contracts and use of consultants
to support these activities. This includes the
cost of actual payment to landowners for lands
acquired for highway rights-of-way, payment
to lessees, interest subsidies, and relocation
expenses.

This appropriation is available in the amounts
of:

(1) $100,000,000 in fiscal year 2018;

(2) $100,000,000 in fiscal year 2019;

(3) $220,000,000 in fiscal year 2020; and

(4) $220,000,000 in fiscal year 2021.

The commissioner may use up to 17 percent
of the amount each year for program delivery.

Subd. 3.

Cancellations

The appropriations in this section cancel as
specified under Minnesota Statutes, section
16A.642, except that the commissioner of
management and budget shall count the start
of authorization for issuance of state bonds as
the first day of the fiscal year during which
the bonds are available to be issued as
specified under subdivision 1 or 2, and not as
the date of enactment of this section.

Sec. 3. BOND SALE EXPENSES

$
940,000

This appropriation is to the commissioner of
management and budget for bond sale
expenses under Minnesota Statutes, sections
16A.641, subdivision 8, and 167.50,
subdivision 4, and is available in the amounts
of:

(1) $150,000 in fiscal year 2018;

(2) $150,000 in fiscal year 2019;

(3) $320,000 in fiscal year 2020; and

(4) $320,000 in fiscal year 2021.

Sec. 4. BOND SALE AUTHORIZATION.

To provide the money appropriated in this article from the bond proceeds account in the
trunk highway fund, the commissioner of management and budget shall sell and issue bonds
of the state in an amount up to $940,940,000 in the manner, upon the terms, and with the
effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
Constitution, article XIV, section 11, at the times and in the amounts requested by the
commissioner of transportation. The proceeds of the bonds, except accrued interest and any
premium received from the sale of the bonds, must be deposited in the bond proceeds account
in the trunk highway fund.

Sec. 5. EFFECTIVE DATE.

This article is effective July 1, 2017.

ARTICLE 3

TRANSPORTATION POLICY AND FINANCE

Section 1.

Minnesota Statutes 2016, section 53C.01, subdivision 2, is amended to read:


Subd. 2.

Cash sale price.

"Cash sale price" means the price at which the seller would
in good faith sell to the buyer, and the buyer would in good faith buy from the seller, the
motor vehicle which is the subject matter of the retail installment contract, if such sale were
a sale for cash, instead of a retail installment sale. The cash sale price may include any taxes,
charges for delivery, servicing, repairing, or improving the motor vehicle, including
accessories and their installation, and any other charges agreed upon between the parties.
The cash price may not include a documentary fee or document administration fee in excess
of $75 for services actually rendered to, for, or on behalf of, the retail buyer in preparing,
handling, and processing documents relating to the motor vehicle and the closing of the
retail sale
authorized under section 168.27, subdivision 31. "Documentary fee" and "document
administration fee" do not include an optional electronic transfer fee as defined under
subdivision 14.

Sec. 2.

Minnesota Statutes 2016, section 85.016, is amended to read:


85.016 BICYCLE TRAIL PROGRAM.

The commissioner of natural resources shall must establish a program for the development
of bicycle trails utilizing the state trails authorized by section 85.015, other state parks and
recreation land, and state forests. "Bicycle trail," as used in this section, has the meaning
given in section 169.011. The program shall must be coordinated with the local park trail
grant program established by the commissioner pursuant to section 85.019, with the bikeway
program
state bicycle routes established by the commissioner of transportation pursuant to
section 160.265 160.266, and with existing and proposed local bikeways. In the metropolitan
area as defined in section 473.121, the program shall must be developed in accordance with
plans and priorities established by the Metropolitan Council. The commissioner shall must
provide technical assistance to local units of government in planning and developing bicycle
trails in local parks. The bicycle trail program shall must, as a minimum, describe the
location, design, construction, maintenance, and land acquisition needs of each component
trail and shall give due consideration to the model standards for the establishment of
recreational vehicle lanes promulgated by the commissioner of transportation pursuant to
section 160.262
. The program shall must be developed after consultation with the state trail
council and regional and local units of government and bicyclist organizations.

Sec. 3.

Minnesota Statutes 2016, section 117.189, is amended to read:


117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.

(a) Sections 117.031; 117.036; 117.055, subdivision 2, paragraph (b); 117.186; 117.187;
117.188; and 117.52, subdivisions 1a and 4, do not apply to the use of eminent domain
authority by public service corporations for any purpose other than construction or expansion
of:

(1) a high-voltage transmission line of 100 kilovolts or more, or ancillary substations;
or

(2) a natural gas, petroleum, or petroleum products pipeline, or ancillary compressor
stations or pumping stations. ; or

(3) a light rail transit or bus rapid transit line.

(b) For purposes of an award of appraisal fees under section 117.085, the fees awarded
may not exceed $1,500 for all types of property except for a public service corporation's
use of eminent domain for:

(1) a high-voltage transmission line, where the award may not exceed $3,000; and

(2) a light rail transit or bus rapid transit line, where the award shall be as provided in
section 117.085
.

(c) For purposes of this section, "pipeline" does not include a natural gas distribution
line transporting gas to an end user.

EFFECTIVE DATE.

This section is effective retroactively from January 1, 2017.

Sec. 4.

Minnesota Statutes 2016, section 160.02, is amended by adding a subdivision to
read:


Subd. 1a.

Bikeway.

"Bikeway" means a bicycle lane, bicycle path, shared use path,
bicycle route, or similar bicycle facility, regardless of whether designed for the exclusive
use of bicycles or for shared use with other transportation modes.

Sec. 5.

Minnesota Statutes 2016, section 160.02, subdivision 27, is amended to read:


Subd. 27.

Roadway; bicycle lane; bicycle route; bicycle path; bikeway.

The terms
"roadway," "bicycle lane," "bicycle route," and "bicycle path," and "bikeway" have the
meanings given in section 169.011.

Sec. 6.

Minnesota Statutes 2016, section 160.02, is amended by adding a subdivision to
read:


Subd. 27a.

Shared use path.

"Shared use path" means a bicycle facility that is (1)
physically separated from motorized vehicular traffic by an open space or barrier, (2) located
within either the highway right-of-way or an independent right-of-way, and (3) available
for use by other nonmotorized users.

Sec. 7.

Minnesota Statutes 2016, section 160.18, is amended by adding a subdivision to
read:


Subd. 4.

Trunk highway appeal process.

(a) Notwithstanding chapter 14 and section
14.386, the commissioner must establish a concise, expedited process that allows an owner
or occupant of a property abutting a trunk highway to appeal a denial or revocation of an
access permit. The owner or occupant must initiate an appeal no later than 30 days after the
date the commissioner issues written notice of the denial or revocation of an access permit.
The process must provide the owner or occupant and Department of Transportation staff
the opportunity to present information supporting each party's respective position. The
hearing must be conducted by an administrative law judge assigned by the chief
administrative law judge. The administrative law judge must maintain a transcript of the
hearing and keep a record of all documents and data submitted at the hearing. Within 30
days of the hearing's conclusion, the administrative law judge must transmit to the
commissioner the record of the proceedings, along with a report and recommendation based
on the record made in the informal hearing. The commissioner must make a written decision
regarding the access permit.

(b) Section 15.99 does not apply to appeals under this subdivision.

Sec. 8.

Minnesota Statutes 2016, section 160.262, subdivision 1, is amended to read:


Subdivision 1.

Model standards Bikeways; powers and duties; design guidelines.

(a) The legislature determines that it is in the interests of the public health, safety and welfare,
to provide for the addition of bicycle and recreational vehicle lanes bikeways to proposed
and existing public highways. The commissioner of transportation shall adopt, in the manner
provided in chapter 14, model standards for the establishment of recreational vehicle lanes
on and along proposed and existing public highways. The model standards shall include
but not be limited to the following: (a) criteria for desirability of a lane in any given location,
(b) provision for maintenance of the lanes, and (c) the placement of the lanes in relation to
roads. The model standards shall govern state trunk highways.
The commissioner of
transportation is authorized to plan, design, establish, and maintain bikeways on the
right-of-way of any trunk highway. The commissioner is responsible for the design and
construction of all bikeway projects within the right-of-way of any trunk highway. The
commissioner must consider the development of bikeways during the planning, design,
construction, reconstruction, or improvement of any trunk highway, or allow the
establishment of such bikeways within trunk highway right-of-way.

(b) The commissioner must maintain bikeway design guidelines consistent with the state
transportation goals in section 174.01.

(c) The commissioner must compile and maintain a map of bikeways in the state and
must publish and distribute the map's information at least once every two years in a form
and manner suitable to assist persons wishing to use the bikeways.

(d) The commissioner must maintain bikeways within the limits of trunk highway
right-of-way unless a written agreement or limited use permit provides otherwise.

Sec. 9.

Minnesota Statutes 2016, section 160.262, subdivision 3, is amended to read:


Subd. 3.

Cooperation among agencies and governments.

The following departments
and agencies shall cooperate in providing on the nonmotorized transportation advisory
committee identified in section 174.37 must provide
information and advice for amendments
to the model standards
the bikeway design guidelines maintained by the commissioner of
transportation: the Departments of Agriculture, Transportation, Natural Resources,
Commerce, and Employment and Economic Development, and the Board of Water and Soil
Resources
. The commissioner may cooperate with and enter into agreements with the United
States government, any department of the state of Minnesota, any unit of local government
and , any tribal government, or any public or private corporation in order to effect the purposes
of this section.

Sec. 10.

Minnesota Statutes 2016, section 160.262, subdivision 4, is amended to read:


Subd. 4.

Design-build bridges for nonmotorized vehicles.

For streets and highways,
the commissioner shall must allow for the acceptance of performance-specification bids,
made by the lowest responsible bidder, for constructing design-build bridges for bicycle
paths, bicycle trails,
bikeways and pedestrian facilities that are:

(1) designed and used primarily for nonmotorized transportation, but may allow for
motorized wheelchairs, golf carts, necessary maintenance vehicles and, when otherwise
permitted by law, rule, or ordinance, snowmobiles; and

(2) located apart from any road or highway or protected by barriers, provided that a
design-built bridge may cross over and above a road or highway.

Sec. 11.

Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision
to read:


Subd. 1a.

State bicycle route; definition.

For the purposes of this section, "state bicycle
route" means a linear series of one or more roads or bikeways that is designated for bicycle
travel, regardless of whether for exclusive use by bicycles or shared use with other modes
of transportation.

Sec. 12.

Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision
to read:


Subd. 1b.

State bicycle routes.

The commissioner of transportation must identify state
bicycle routes primarily on existing road right-of-way and trails. State bicycle routes must
be identified in cooperation with road and trail authorities, including the commissioner of
natural resources, and with the advice of the advisory committee on nonmotorized
transportation under section 174.37. In a metropolitan area, state bicycle routes must be
identified in coordination with the plans and priorities established by metropolitan planning
organizations, as defined in United States Code, title 23, section 134.

Sec. 13.

Minnesota Statutes 2016, section 160.266, subdivision 3, is amended to read:


Subd. 3.

Connections with other bikeways.

(a) The commissioner, in cooperation with
road and trail authorities including the commissioner of natural resources, shall must:

(1) identify existing bikeways of regional significance that are in reasonable proximity
but not connected to the bikeway state bicycle routes established in under this section,
including but not limited to the Lake Wobegon Trail in the counties of Stearns and Todd
;
and

(2) support development of linkages between bikeways identified under clause (1) and
the bikeway
state bicycle routes established in under this section.

(b) The requirements of this subdivision are a secondary priority for use of funds available
under this section following establishment and enhancement of the bikeway state bicycle
routes
under subdivision 1 this section.

Sec. 14.

Minnesota Statutes 2016, section 160.266, subdivision 4, is amended to read:


Subd. 4.

Cooperation with other entities.

The commissioner may contract and enter
into agreements with federal agencies, other state agencies, local governments, and tribal
governments, or
private entities to establish, develop, maintain, and operate the bikeway
state bicycle routes
and to interpret associated natural and cultural resources.

Sec. 15.

Minnesota Statutes 2016, section 160.266, subdivision 5, is amended to read:


Subd. 5.

Funding.

Bicycle Shared use paths included within the bikeway state bicycle
routes
and not administered by the commissioner of natural resources are eligible for funding
from the environment and natural resources trust fund under chapter 116P, from the parks
and trails grant program under section 85.535, from the local recreation grants program
under section 85.019, subdivision 4b, and from other sources.

Sec. 16.

Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision
to read:


Subd. 6.

Mississippi River Trail.

The Mississippi River Trail bikeway must originate
at Itasca State Park in Clearwater, Beltrami, and Hubbard Counties, then generally parallel
the Mississippi River through the cities of Bemidji in Beltrami County, Grand Rapids in
Itasca County, Brainerd in Crow Wing County, Little Falls in Morrison County, Sauk Rapids
in Benton County, St. Cloud in Stearns County, Minneapolis in Hennepin County, St. Paul
in Ramsey County, Hastings in Dakota County, Red Wing in Goodhue County, Wabasha
in Wabasha County, Winona in Winona County, and La Crescent in Houston County to
Minnesota's boundary with Iowa and there terminate. Where opportunities exist, the bikeway
may be designated on both sides of the Mississippi River.

Sec. 17.

[160.801] HIGHWAY SPONSORSHIP PROGRAM.

Subdivision 1.

Sponsorship program.

(a) The commissioner is authorized to establish
a program designed to encourage businesses, civic groups, or individuals to voluntarily
assist with the improvement and maintenance of real property comprising the trunk highway
system, including bicycle and pedestrian trails, roadside monuments, and historic sites.

(b) All support provided by volunteers or vendors must be carried out in a manner
consistent with construction and maintenance plans approved by the commissioner after
consultation with the volunteers.

(c) The commissioner may provide assistance to (1) enhance volunteer safety, and (2)
facilitate the implementation and administration of the sponsorship program.

Subd. 2.

Agreements.

The commissioner may enter into volunteer agreements with
businesses, civic groups, or individuals to support, maintain, and make improvements to
real property included in the trunk highway system. Agreements under this section are not
subject to section 161.32.

Subd. 3.

Support activities.

(a) The volunteer support activities include but are not
limited to:

(1) work to create, protect, and enhance pollinator habitat along highway rights-of-way;

(2) work to pick up litter along roadsides;

(3) work to install enhancements, including landscaping materials, on trunk highway
property;

(4) financial support provided to the department for specific roadside improvements;

(5) financial support consisting of the sponsor hiring a professional landscape contractor
to install vegetation, maintain landscape plantings, or pick up litter, or for other similar
activities along a selected area of highway right-of-way; or

(6) installation of features that enhance the aesthetics of trunk highway property or the
amenities available to highway users.

(b) All volunteer support activities must have prior commissioner approval.

Subd. 4.

Acknowledgment of sponsors.

The commissioner may erect signs to publicly
recognize and express appreciation to businesses, civic groups, and individuals that provide
volunteer funding or services under the sponsorship program.

Subd. 5.

Highway sponsorship program account; appropriation.

Funds received
under this section must be deposited in the highway sponsorship program account, which
is created in the special revenue fund. The account consists of funds as provided by law,
and any other money donated, allotted, transferred, or otherwise provided to the account.
Funds in the account are annually appropriated to the commissioner for the purpose specified
in the volunteer agreement.

Subd. 6.

Prohibition.

The commissioner must not take action under this section that
would result in the loss of federal highway funds or require payment of highway funds to
the federal government.

Sec. 18.

Minnesota Statutes 2016, section 161.04, subdivision 5, is amended to read:


Subd. 5.

Trunk highway emergency relief account.

(a) The trunk highway emergency
relief account is created in the trunk highway fund. Money in the account is appropriated
to the commissioner to be used to fund relief activities related to an emergency, as defined
in section 161.32, subdivision 3, or under section 12A.16, subdivision 1.

(b) Reimbursements by the Federal Highway Administration for emergency relief
payments made from the trunk highway emergency relief account must be credited to the
account. Notwithstanding section 16A.28, money in the account is available until spent. If
the balance of the account at the end of a fiscal year is greater than $10,000,000, the amount
above $10,000,000 must be canceled to the trunk highway fund.

(c) By September 1, 2012, and in every subsequent even-numbered year by September
1, the commissioner shall submit a report to the chairs and ranking minority members of
the senate and house of representatives committees having jurisdiction over transportation
policy and finance. The report must include the balance, as well as details of payments made
from and deposits made to the trunk highway emergency relief account since the last report.

Sec. 19.

Minnesota Statutes 2016, section 161.081, subdivision 3, is amended to read:


Subd. 3.

Flexible highway account; turnback accounts.

(a) The flexible highway
account is created in the state treasury. Money in the account shall be used must be allocated
as follows
:

(1) in fiscal years 2009 and 2010, 100 percent of the excess sum, as calculated in
paragraph (i), and in fiscal years 2011 and thereafter, 50
16 percent of the excess sum, as
calculated in paragraph (i),
amount available in the flexible highway account for counties
in the metropolitan area, as defined in section 473.121, subdivision 4, but for the purposes
of the calculation cities of the first class will be excluded in the metropolitan area
distributed
proportionally based on the most recent estimate of county population excluding the
population of any city of the first class
; and

(2) of the amount available in the flexible highway account less the amount under clause
(1), as determined by the commissioner under this section for:

(i) restoration of former trunk highways that have reverted to counties or to statutory or
home rule charter cities, or for trunk highways that will be restored and subsequently turned
back by agreement between the commissioner and the local road authority;

(ii) safety improvements on county highways, municipal highways, streets, or town
roads; and

(iii) routes of regional significance.

(b) For purposes of this subdivision, "restoration" means the level of effort required to
improve the route that will be turned back to an acceptable condition as determined by
agreement made between the commissioner and the county or city before the route is turned
back.

(c) The commissioner shall review the need for funds to restore highways that have been
or will be turned back. The commissioner shall determine, on a biennial basis, the percentage
of funds in the flexible highway account to be distributed to each district, and within each
district the percentage to be used for each of the purposes specified in paragraph (a). Money
in the account may be used for safety improvements and routes of regional significance
only after money is set aside to restore the identified turnbacks. The commissioner shall
make these determinations only after meeting and holding discussions with committees
selected by the statewide associations of both county commissioners and municipal officials.
The commissioner shall, to the extent feasible, annually allocate 50 percent of the funds in
the flexible highway account to the department's metropolitan district, and 50 percent to
districts in greater Minnesota.

(d) Money that will be used for the restoration of trunk highways that have reverted or
that will revert to cities must be deposited in the municipal turnback account, which is
created in the state treasury.

(e) Money that will be used for the restoration of trunk highways that have reverted or
that will revert to counties must be deposited in the county turnback account, which is
created in the state treasury.

(f) Money that will be used for safety improvements must be deposited in the highway
safety improvement account, which is created in the state treasury to be used as grants to
statutory or home rule charter cities, towns, and counties to assist in paying the costs of
constructing or reconstructing city streets, county highways, or town roads to reduce crashes,
deaths, injuries, and property damage.

(g) Money that will be used for routes of regional significance must be deposited in the
routes of regional significance account, which is created in the state treasury, and used as
grants to statutory or home rule charter cities, towns, and counties to assist in paying the
costs of constructing or reconstructing city streets, county highways, or town roads with
statewide or regional significance that have not been fully funded through other state, federal,
or local funding sources.

(h) As part of each biennial budget submission to the legislature, the commissioner shall
must: (1)
describe how the money in the flexible highway account will be apportioned
among the county turnback account, the municipal turnback account, the trunk highway
fund for routes turned back to local governments by agreement, the highway safety
improvement account, and the routes of regional significance account; and (2) specify the
turnback projects likely to be funded with the amounts available in the county turnback
account and municipal turnback account, and provide the cost associated with each project
.

(i) The excess sum is calculated as the sum of revenue within the flexible highway
account:

(1) attributed to that portion of the gasoline excise tax rate under section 296A.07,
subdivision 3
, in excess of 20 cents per gallon, and to that portion of the excise tax rates in
excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon for E85
and M85 under section 296A.07, subdivision 3, and special fuel under section 296A.08,
subdivision 2
;

(2) attributed to a change in the passenger vehicle registration tax under section 168.013,
imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal year 2008,
multiplied by (ii) the annual average United States Consumer Price Index for the calendar
year previous to the current calendar year, divided by the annual average United States
Consumer Price Index for calendar year 2007; and

(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the
percentage allocated to the flexible highway account in fiscal year 2007.

(j) For purposes of this subdivision, the United States Consumer Price Index identified
in paragraph (i), clause (2), is for all urban consumers, United States city average, as
determined by the United States Department of Labor.

Sec. 20.

Minnesota Statutes 2016, section 161.088, subdivision 4, is amended to read:


Subd. 4.

Project eligibility.

(a) The commissioner shall establish eligibility requirements
for projects that can be funded under the program. Eligibility must include are:

(1) consistency with the statewide multimodal transportation plan under section 174.03;

(2) location of the project on an interregional corridor, for a project located outside of
the Department of Transportation metropolitan district;

(3) placement into at least one project classification under subdivision 3;

(4) a maximum project construction work will commence within three years, or a longer
length of time, as determined by the commissioner, until commencement of construction
work on the project
; and

(5) for each type of project classification under subdivision 3, a maximum allowable
amount for the total project cost estimate, as determined by the commissioner with available
data.

(b) A project whose construction is programmed in the state transportation improvement
program is not eligible for funding under the program. This paragraph does not apply to a
project that is programmed as result of selection under this section.

(c) A project may be, but is not required to be, identified in the 20-year state highway
capital investment plan under section 174.03.

(d) For each project, the commissioner must consider all of the eligibility requirements
under paragraph (a). The commissioner is prohibited from considering any eligibility
requirement not specified under paragraph (a).

Sec. 21.

Minnesota Statutes 2016, section 161.088, subdivision 5, is amended to read:


Subd. 5.

Project selection process; criteria.

(a) The commissioner shall must establish
a process for identification, evaluation, and selection of to identify, evaluate, and select
projects under the program. The process must be consistent with the requirements of this
subdivision and must not include any additional evaluation criteria.

(b) As part of the project selection process, the commissioner shall must annually accept
recommendations on candidate projects from area transportation partnerships and other
interested stakeholders in each Department of Transportation district. The commissioner
must determine the eligibility
for each candidate project identified under this paragraph,
the commissioner shall determine eligibility, classify, and if appropriate, evaluate the project
for the program
. For each eligible project, the commissioner must classify and evaluate the
project for the program, using all of the criteria established under paragraph (c).

(c) Project evaluation and prioritization must be performed on the basis of objective
criteria, which must include
Projects must be evaluated using all of the following criteria:

(1) a return on investment measure that provides for comparison across eligible projects;

(2) measurable impacts on commerce and economic competitiveness;

(3) efficiency in the movement of freight, including but not limited to:

(i) measures of annual average daily traffic and commercial vehicle miles traveled, which
may include data near the project location on that trunk highway or on connecting trunk
and local highways; and

(ii) measures of congestion or travel time reliability, which may be within or near the
project limits, or both;

(4) improvements to traffic safety;

(5) connections to regional trade centers, local highway systems, and other transportation
modes;

(6) the extent to which the project addresses multiple transportation system policy
objectives and principles; and

(7) support and consensus for the project among members of the surrounding community;
and

(8) regional balance throughout the state.

(d) The list of all projects evaluated must be made public and must include the score of
each project.

(e) As part of the project selection process, the commissioner may divide funding to be
separately available among projects within each classification under subdivision 3, and may
apply separate or modified criteria among those projects falling within each classification.

Sec. 22.

Minnesota Statutes 2016, section 161.088, subdivision 7, is amended to read:


Subd. 7.

Legislative report; evaluation.

(a) Starting in 2014, Annually by November
1, the commissioner shall must electronically submit a report on the corridors of commerce
program to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation policy and finance. At a minimum, the report must include:

(1) a summary of the program, including a review of the :

(i) project selection process details that address program design and implementation,
decision-making procedures
, and eligibility and criteria, evaluation;

(ii) criteria measurement methodologies and criteria weighting used in project selection;
and

(iii) the policy that provides the weight given each criterion;

(2) a summary of program finance, including funds expended in the previous selection
cycle, any future operating costs assigned under subdivision 6, and total funds expended
since program inception;

(2) (3) a listing list of projects funded under the program in the previous selection cycle,
including:

(i) project classification;

(ii) a breakdown of project costs and funding sources; and

(iii) any future operating costs assigned under subdivision 6; and

(iv) a brief project description that is comprehensible to a lay audience;

(3) (4) a listing comprehensive list of evaluated projects and candidate project
recommendations as required under subdivision 5, paragraph (b), including that identifies
for each
project: eligibility, classification, evaluation results for each criterion, score, and
disposition in the selection process; and

(4) (5) any recommendations for changes to statutory requirements of the program.

(b) Starting in 2016, and In every even-numbered year thereafter, the commissioner
shall must incorporate into the report the results of an independent evaluation of impacts
and effectiveness of the program. The evaluation must be performed by agency staff or a
consultant. The individual or individuals performing the evaluation must have experience
in program evaluation, but must not be regularly involved in the program's implementation.

(c) Notwithstanding paragraph (a), a report is not required in a year in which:

(1) no project selection was completed during the preceding 12 months; and

(2) an evaluation under paragraph (b) is not due.

Sec. 23.

Minnesota Statutes 2016, section 161.115, subdivision 190, is amended to read:


Subd. 190.

Route No. 259.

Beginning at a point on Statutory Route No. 100, at or near
Henderson; thence extending in a general southeasterly direction to a point on Statutory
Route No. 123,
at or near Le Sueur.

EFFECTIVE DATE.

This section is effective the day after the commissioner of
transportation receives a copy of the agreement between the commissioner of transportation
and the governing body of Le Sueur County to transfer jurisdiction of Legislative Route
No. 123 and after the commissioner notifies the revisor of statutes under section 141,
paragraph (b).

Sec. 24.

Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to
read:


Subd. 86.

Senator Jim Metzen Memorial Highway.

That segment of marked U.S.
Highway 52 located within Dakota County is designated as "Senator Jim Metzen Memorial
Highway." Notwithstanding section 161.139, the commissioner shall adopt a suitable design
to mark this highway and erect appropriate signs.

Sec. 25.

Minnesota Statutes 2016, section 161.21, subdivision 1, is amended to read:


Subdivision 1.

Location and design of highways.

The commissioner may make or
cause to be made such studies and investigations as the commissioner deems necessary for
the purpose of determining the most advantageous location and design of trunk highways
from the standpoint of both present and future traffic needs, and in making such
determinations the commissioner may take into consideration the probable future
development of both urban and rural areas and the effect of such development on future
traffic needs as indicated by such studies and investigations and the location and design
with respect to recreational vehicle lane bikeway establishment.

Sec. 26.

Minnesota Statutes 2016, section 161.321, subdivision 6, is amended to read:


Subd. 6.

Rules; eligibility.

(a) The rules adopted by the commissioner of administration
to define small businesses and to set time and other eligibility requirements for participation
in programs under sections 16C.16 to 16C.19 apply to this section. The commissioner may
promulgate other rules necessary to carry out this section.

(b) In addition to other eligibility requirements, a small targeted group business or
veteran-owned small business is eligible for the bid preferences under this section only for
eight years following the latest of:

(1) May 1, 2012;

(2) for a targeted group business, the date of initial certification by the commissioner of
administration, as provided under section 16C.19;

(3) for a veteran-owned small business, the date of initial certification by the United
States Department of Veterans Affairs, as provided under section 16C.19, paragraph (d);
or

(4) for a veteran-owned small business, the release or discharge of any one of the owners
from military active service, as defined in section 190.05, subdivision 5, lasting for a period
of 179 days or longer.

Sec. 27.

Minnesota Statutes 2016, section 161.38, is amended by adding a subdivision to
read:


Subd. 8.

Spending on trunk highway system.

The commissioner must maintain
information on expenditures by local road authorities from local funding sources for trunk
highway system projects.

Sec. 28.

Minnesota Statutes 2016, section 161.44, subdivision 5, is amended to read:


Subd. 5.

Conveyance to highest bidder in certain cases.

If the larger tract has been
platted into lots or divided into smaller tracts and the commissioner elects to proceed under
this subdivision, or if the lands constituted an entire tract and the person from whom the
lands were acquired and the person's spouse are deceased, or if the offers as provided for
are not accepted and the amount of money not tendered within the time prescribed, the lands
may be sold and conveyed to the owner of the land abutting upon the lands in the same
manner and under the same terms provided under subdivision 2, or the commissioner may
sell the lands to the
highest responsible bidder upon three weeks' published notice of such
sale in a newspaper or other periodical of general circulation in the general area where the
lands are located. All bids may be rejected and new bids received upon like advertisement.

Sec. 29.

Minnesota Statutes 2016, section 161.44, subdivision 6a, is amended to read:


Subd. 6a.

Services of licensed real estate broker.

If the lands remain unsold after being
offered for sale to the highest bidder
are withdrawn from sale under subdivision 6b, the
commissioner may retain the services of a licensed real estate broker to find a buyer. The
sale price may be negotiated by the broker, but must not be less than 90 percent of the
appraised market value as determined by the commissioner. The broker's fee must be
established by prior agreement between the commissioner and the broker, and must not
exceed ten percent of the sale price for sales of $10,000 or more. The broker's fee must be
paid to the broker from the proceeds of the sale.

Sec. 30.

Minnesota Statutes 2016, section 161.44, is amended by adding a subdivision to
read:


Subd. 6b.

Unsold lands.

If lands remain unsold after being offered for sale to the highest
bidder, the commissioner may offer the remaining lands to any person who agrees to pay
the minimum bid established for the public sale. The sale must continue until all eligible
lands have been sold or the commissioner withdraws the remaining lands from sale. The
lands to be sold must be listed on the department's Unsold Property Inventory list.

Sec. 31.

Minnesota Statutes 2016, section 168.013, subdivision 1a, is amended to read:


Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined in
section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax shall be
is
$10 plus an additional tax equal to 1.25 percent of the base value.

(b) Subject to the classification provisions herein, "base value" means the manufacturer's
suggested retail price of the vehicle including destination charge using list price information
published by the manufacturer or determined by the registrar if no suggested retail price
exists, and shall not include the cost of each accessory or item of optional equipment
separately added to the vehicle and the suggested retail price.

(c) If the manufacturer's list price information contains a single vehicle identification
number followed by various descriptions and suggested retail prices, the registrar shall
select from those listings only the lowest price for determining base value.

(d) If unable to determine the base value because the vehicle is specially constructed,
or for any other reason, the registrar may establish such value upon the cost price to the
purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
or use tax or any local sales or other local tax.

(e) The registrar shall classify every vehicle in its proper base value class as follows:

FROM
TO
$
0
$ 199.99
$
200
$ 399.99

and thereafter a series of classes successively set in brackets having a spread of $200
consisting of such number of classes as will permit classification of all vehicles.

(f) The base value for purposes of this section shall be the middle point between the
extremes of its class.

(g) The registrar shall establish the base value, when new, of every passenger automobile
and hearse registered prior to the effective date of Extra Session Laws 1971, chapter 31,
using list price information published by the manufacturer or any nationally recognized
firm or association compiling such data for the automotive industry. If unable to ascertain
the base value of any registered vehicle in the foregoing manner, the registrar may use any
other available source or method. The registrar shall calculate tax using base value
information available to dealers and deputy registrars at the time the application for
registration is submitted. The tax on all previously registered vehicles shall be computed
upon the base value thus determined taking into account the depreciation provisions of
paragraph (h).

(h) The annual additional tax must be computed upon a percentage of the base value as
follows: during the first year of vehicle life, upon 100 percent of the base value; for the
second year, 90 percent of such value; for the third year, 80 percent of such value; for the
fourth year, 70 percent of such value; for the fifth year, 60 percent of such value; for the
sixth year, 50 percent of such value; for the seventh year, 40 percent of such value; for the
eighth year, 30 percent of such value; for the ninth year, 20 percent of such value; for the
tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.

(i) In no event shall the annual additional tax be less than $25.

(j) For any vehicle previously registered in Minnesota and regardless of prior ownership,
the annual additional tax total amount due under this subdivision and subdivision 1m must
not exceed the smallest total amount of annual additional tax previously paid or due on the
vehicle.

EFFECTIVE DATE.

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

Sec. 32.

Minnesota Statutes 2016, section 168.013, is amended by adding a subdivision
to read:


Subd. 1m.

Electric vehicle.

In addition to the tax under subdivision 1a, a surcharge of
$75 is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a.
Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision must
be deposited in the highway user tax distribution fund.

EFFECTIVE DATE.

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

Sec. 33.

Minnesota Statutes 2016, section 168.021, subdivision 1, is amended to read:


Subdivision 1.

Disability plates; application.

(a) When a motor vehicle registered under
section 168.017, a motorcycle, a motorized bicycle, a one-ton pickup truck, or a self-propelled
recreational vehicle is owned or primarily operated by a permanently physically disabled
person or a custodial parent or guardian of a permanently physically disabled minor person,
the owner may apply for and secure from the commissioner (1) immediately, a temporary
permit valid for 30 days if the applicant is eligible for the disability plates issued under this
section and (2) two disability plates with attached emblems, one plate to be attached to the
front, and one to the rear of the motor vehicle, truck, or recreational vehicle, or, in the case
of a motorcycle or a motorized bicycle, one disability plate the same size as a regular
motorcycle plate.

(b) The commissioner shall not issue more than one plate to the owner of a motorcycle
or a motorized bicycle and not more than one set of plates to any owner of another vehicle
described in paragraph (a) at the same time unless the state Council on Disability approves
the issuance of a second plate or set of plates to an owner.

(c) When the owner first applies for the disability plate or plates, the owner must submit
a medical statement in a format approved by the commissioner under section 169.345, or
proof of physical disability provided for in that section.

(d) No medical statement or proof of disability is required when an owner applies for a
plate or plates for one or more vehicles listed in paragraph (a) that are specially modified
for and used exclusively by permanently physically disabled persons.

(e) The owner of a vehicle listed in paragraph (a) may apply for and secure (i)
immediately, a permit valid for 30 days, if the applicant is eligible to receive the disability
plate or plates issued under this section, and (ii) a disability plate or plates for the vehicle
if:

(1) the owner employs a permanently physically disabled person who would qualify for
the disability plate or plates under this section; and

(2) the owner furnishes the motor vehicle to the physically disabled person for the
exclusive use of that person in the course of employment.

EFFECTIVE DATE.

This section is effective January 1, 2018.

Sec. 34.

Minnesota Statutes 2016, section 168.021, subdivision 2, is amended to read:


Subd. 2.

Plate design; furnished by commissioner.

The commissioner shall design
and furnish two disability plates, or one disability plate for a motorcycle or a motorized
bicycle
that is the same size as a regular motorcycle plate, with attached emblem or emblems
to an eligible owner. The emblem must bear the internationally accepted wheelchair symbol,
as designated in section 326B.106, subdivision 9, approximately three inches square. The
emblem must be large enough to be visible plainly from a distance of 50 feet. An applicant
eligible for a disability plate or plates shall pay the motor vehicle registration fee authorized
by sections 168.013 and 168.09.

EFFECTIVE DATE.

This section is effective January 1, 2018.

Sec. 35.

Minnesota Statutes 2016, section 168.021, subdivision 2a, is amended to read:


Subd. 2a.

Plate transfer.

(a) When ownership of a vehicle described in subdivision 1,
is transferred, the owner of the vehicle shall remove the disability plate or plates. The buyer
of the motor vehicle is entitled to receive a regular plate or plates for the vehicle without
further cost for the remainder of the registration period.

(b) Notwithstanding section 168.12, subdivision 1, the disability plate or plates may be
transferred to a replacement vehicle on notification to the commissioner. However, the
disability plate or plates may not be transferred unless the replacement vehicle (1) is listed
under section 168.012, subdivision 1, and, in case of a single plate for a motorcycle or a
motorized bicycle
, the replacement vehicle is a motorcycle or a motorized bicycle, and (2)
is owned or primarily operated by the permanently physically disabled person.

EFFECTIVE DATE.

This section is effective January 1, 2018.

Sec. 36.

[168.1256] RETIRED LAW ENFORCEMENT SPECIAL PLATES.

Subdivision 1.

Issuance of plates.

The commissioner shall issue retired law enforcement
license special plates or a single motorcycle plate to an applicant who:

(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup
truck, motorcycle, or recreational vehicle;

(2) is a retired peace officer as defined in section 626.84, subdivision 1, paragraph (c)
or (d);

(3) provides a letter from the chief law enforcement officer affirming that the applicant
is a retired peace officer who served ten or more years and separated in good standing;

(4) pays a fee of $10 for each set of plates, along with any other fees required by this
chapter;

(5) pays the registration tax as required under section 168.013; and

(6) complies with this chapter and rules governing registration of motor vehicles and
licensing of drivers.

Subd. 2.

Design.

The commissioner shall design an emblem and inscription for the
special plates, in consultation with interested law enforcement agencies and organizations.

Subd. 3.

Plates transfer.

On application to the commissioner and payment of a transfer
fee of $5, special plates issued under this section may be transferred to another motor vehicle
if the subsequent vehicle is:

(1) qualified under subdivision 1, clause (1), to bear the special plates; and

(2) registered to the same individual to whom the special plates were originally issued.

Subd. 4.

Exemption.

Special plates issued under this section are not subject to section
168.1293, subdivision 2.

EFFECTIVE DATE.

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

Sec. 37.

[168.1294] "START SEEING MOTORCYCLES" SPECIAL PLATES.

Subdivision 1.

Issuance of plates.

The commissioner must issue "Start Seeing
Motorcycles" special license plates or a single motorcycle plate to an applicant who:

(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup
truck, motorcycle, or recreational vehicle;

(2) pays a fee of $10 for each set of plates;

(3) pays the registration tax as required under section 168.013, along with any other fees
required by this chapter;

(4) contributes a minimum of $10 annually to the motorcycle safety fund, created under
section 171.06, subdivision 2a, paragraph (a), clause (1); and

(5) complies with this chapter and rules governing registration of motor vehicles and
licensing of drivers.

Subd. 2.

Design.

The representatives of American Bikers for Awareness, Training, and
Education of Minnesota must design the special plate to contain the inscription "Start Seeing
Motorcycles" between the bolt holes on the bottom of the plate with a design area on the
left side of the plate, subject to the approval of the commissioner.

Subd. 3.

Plates transfer.

On application to the commissioner and payment of a transfer
fee of $5, special plates issued under this section may be transferred to another motor vehicle
if the subsequent vehicle is:

(1) qualified under subdivision 1, clause (1), to bear the special plates; and

(2) registered to the same individual to whom the special plates were originally issued.

Subd. 4.

Exemption.

Special plates issued under this section are not subject to section
168.1293, subdivision 2.

Subd. 5.

Fees.

Fees collected under subdivision 1, clause (2), and subdivision 3 are
credited to the vehicle services operating account in the special revenue fund.

Subd. 6.

No refund.

Contributions under this section must not be refunded.

EFFECTIVE DATE.

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

Sec. 38.

Minnesota Statutes 2016, section 168.27, is amended by adding a subdivision to
read:


Subd. 31.

Documentary fee.

(a) A motor vehicle dealer may not charge a documentary
fee or document administration fee in excess of the amounts provided under paragraph (b)
for services actually rendered to, for, or on behalf of the retail buyer or lessee to prepare,
handle, and process documents for the closing of a motor vehicle retail sale or lease. The
fee must be separately stated on the sales agreement maintained under Minnesota Rules,
part 7400.5200, and may be excluded from the dealer's advertised price.

(b) For motor vehicle sales or leases made on or after July 1, 2017, through June 30,
2020, the maximum fee is $100. For motor vehicle sales or leases made on or after July 1,
2020, the maximum fee is $125.

(c) "Documentary fee" and "document administration fee" do not include an optional
electronic transfer fee as defined under section 53C.01, subdivision 14.

Sec. 39.

Minnesota Statutes 2016, section 168.33, subdivision 2, is amended to read:


Subd. 2.

Deputy registrars.

(a) The commissioner may appoint, and for cause
discontinue, a deputy registrar for any statutory or home rule charter city as the public
interest and convenience may require, without regard to whether the county auditor of the
county in which the city is situated has been appointed as the deputy registrar for the county
or has been discontinued as the deputy registrar for the county, and without regard to whether
the county in which the city is situated has established a county license bureau that issues
motor vehicle licenses as provided in section 373.32.

(b) The commissioner may appoint, and for cause discontinue, a deputy registrar for any
statutory or home rule charter city as the public interest and convenience may require, if
the auditor for the county in which the city is situated chooses not to accept appointment
as the deputy registrar for the county or is discontinued as a deputy registrar, or if the county
in which the city is situated has not established a county license bureau that issues motor
vehicle licenses as provided in section 373.32.

(c) The commissioner may appoint, and for cause discontinue, the county auditor of
each county as a deputy registrar.

(d) Despite any other provision, a person other than a county auditor or a director of a
county license bureau, who was appointed by the registrar before August 1, 1976, as a
deputy registrar for any statutory or home rule charter city, may continue to serve as deputy
registrar and may be discontinued for cause only by the commissioner. The county auditor
who appointed the deputy registrars is responsible for the acts of deputy registrars appointed
by the auditor.

(e) Each deputy, before entering upon the discharge of duties, shall take and subscribe
an oath to faithfully discharge the duties and to uphold the laws of the state.

(f) If a deputy registrar appointed under this subdivision is not an officer or employee
of a county or statutory or home rule charter city, the deputy shall in addition give bond to
the state in the sum of $10,000, or a larger sum as may be required by the commissioner,
conditioned upon the faithful discharge of duties as deputy registrar.

(g) A corporation governed by chapter 302A or 317A may be appointed a deputy registrar.
Upon application by an individual serving as a deputy registrar and the giving of the requisite
bond as provided in this subdivision, personally assured by the individual or another
individual approved by the commissioner, a corporation named in an application then
becomes the duly appointed and qualified successor to the deputy registrar.

(h) Each deputy registrar appointed under this subdivision shall keep and maintain office
locations approved by the commissioner for the registration of vehicles and the collection
of taxes and fees on vehicles.

(i) The deputy registrar shall keep records and make reports to the commissioner as the
commissioner requires. The records must be maintained at the offices of the deputy registrar.
in a manner that complies with sections 13.05, subdivision 5, and 13.055. As an alternative
to paper copy storage, a deputy registrar may retain records and documents in a secure
electronic medium that complies with the security requirements under the United States
Federal Bureau of Investigation, Criminal Justice Information Services Division, Policy 5.4
or any successor policy, provided 60 days have elapsed since the transaction and subject to
standards established by the commissioner. The deputy registrar is responsible for all costs
associated with the conversion to electronic records and maintenance of the electronic
storage medium, including the destruction of existing paper records after conversion to the
electronic format. All queries and responses in the secure electronic medium, and all actions
in which data are entered, updated, accessed, or shared or disseminated by the deputy
registrar must be contained in a data audit trail. Data contained in the audit trail are public
to the extent the data are not otherwise classified under this section.
The records and offices
of the deputy registrar must at all times be open to the inspection of the commissioner or
the commissioner's agents. The deputy registrar shall report to the commissioner by the
next working day following receipt all registrations made and taxes and fees collected by
the deputy registrar.

(j) The filing fee imposed under subdivision 7 must be deposited in the treasury of the
place for which appointed or, if not a public official, a deputy shall retain the filing fee, but
the registration tax and any additional fees for delayed registration the deputy registrar has
collected the deputy registrar shall deposit by the next working day following receipt in an
approved state depository to the credit of the state through the commissioner of management
and budget. The place for which the deputy registrar is appointed through its governing
body must provide the deputy registrar with facilities and personnel to carry out the duties
imposed by this subdivision if the deputy is a public official. In all other cases, the deputy
shall maintain a suitable facility for serving the public.

Sec. 40.

Minnesota Statutes 2016, section 168A.09, subdivision 1, is amended to read:


Subdivision 1.

Application, issuance, form, bond, and notice.

(a) In the event a
certificate of title is lost, stolen, mutilated, or destroyed, or becomes illegible, the owner or
legal representative of the owner named in the certificate may make submit an application
to the department or a deputy registrar for a duplicate in a format prescribed by the
department. The department shall or deputy registrar must issue a duplicate certificate of
title if satisfied that the applicant is entitled thereto to the duplicate certificate of title. The
duplicate certificate of title shall must be plainly marked as a duplicate and mailed or
delivered to the owner. The department shall or deputy registrar must indicate in its the
driver and vehicle information system
records that a duplicate certificate of title has been
issued. As a condition to issuing a duplicate certificate of title, the department may require
a bond from the applicant in the manner and format prescribed in section 168A.07,
subdivision 1
, clause (2). The duplicate certificate of title shall must contain the legend:
"This duplicate certificate of title may be subject to the rights of a person under the original
certificate."

(b) On and after the effective date of this section, the commissioner must allow duplicate
certificate of title issuance by a deputy registrar, subject to procedures established by the
commissioner.

EFFECTIVE DATE.

This section is effective August 1, 2018.

Sec. 41.

[168A.125] TRANSFER-ON-DEATH TITLE TO MOTOR VEHICLE.

Subdivision 1.

Titled as transfer-on-death.

A natural person who is the owner of a
motor vehicle may have the motor vehicle titled in transfer-on-death or TOD form by
including in the application for the certificate of title a designation of a beneficiary or
beneficiaries to whom the motor vehicle must be transferred on death of the owner or the
last survivor of joint owners with rights of survivorship, subject to the rights of secured
parties.

Subd. 2.

Designation of beneficiary.

A motor vehicle is registered in transfer-on-death
form by designating on the certificate of title the name of the owner and the names of joint
owners with identification of rights of survivorship, followed by the words "transfer-on-death
to (name of beneficiary or beneficiaries)." The designation "TOD" may be used instead of
"transfer-on-death." A title in transfer-on-death form is not required to be supported by
consideration, and the certificate of title in which the designation is made is not required to
be delivered to the beneficiary or beneficiaries in order for the designation to be effective.
If the owner of the motor vehicle is married at the time of the designation, the designation
of a beneficiary other than the owner's spouse requires the spouse's written consent.

Subd. 3.

Interest of beneficiary.

The transfer-on-death beneficiary or beneficiaries have
no interest in the motor vehicle until the death of the owner or the last survivor of joint
owners with rights of survivorship. A beneficiary designation may be changed at any time
by the owner or by all joint owners with rights of survivorship, without the consent of the
beneficiary or beneficiaries, by filing an application for a new certificate of title.

Subd. 4.

Vesting of ownership in beneficiary.

Ownership of a motor vehicle titled in
transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of
the owner or the last of the joint owners with rights of survivorship, subject to the rights of
secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner
may apply for a new certificate of title to the motor vehicle upon submitting a certified death
record of the owner of the motor vehicle. If no transfer-on-death beneficiary or beneficiaries
survive the owner of a motor vehicle, the motor vehicle must be included in the probate
estate of the deceased owner. A transfer of a motor vehicle to a transfer-on-death beneficiary
or beneficiaries is not a testamentary transfer.

Subd. 5.

Rights of creditors.

(a) This section does not limit the rights of any secured
party or creditor of the owner of a motor vehicle against a transfer-on-death beneficiary or
beneficiaries.

(b) The state or a county agency with a claim or lien authorized by section 246.53,
256B.15, 261.04, or 270C.63 is a creditor for purposes of this subdivision. A claim authorized
by section 256B.15 against the estate of an owner of a motor vehicle titled in
transfer-on-death form voids any transfer-on-death conveyance of a motor vehicle as
described in this section. A claim or lien under section 246.53, 261.04, or 270C.63 continues
to apply against the designated beneficiary or beneficiaries after the transfer under this
section if other assets of the deceased owner's estate are insufficient to pay the amount of
the claim. The claim or lien continues to apply to the motor vehicle until the designated
beneficiary sells or transfers it to a person against whom the claim or lien does not apply
and who did not have actual notice or knowledge of the claim or lien.

Sec. 42.

Minnesota Statutes 2016, section 168A.141, is amended to read:


168A.141 MANUFACTURED HOME AFFIXED TO REAL PROPERTY.

Subdivision 1.

Certificates surrendered for cancellation.

(a) When a manufactured
home is to be affixed or is affixed, as defined in section 273.125, subdivision 8, paragraph
(b), to real property, and financed by the giving of a mortgage on the real property, the
owner of the manufactured home shall may surrender the manufacturer's certificate of origin
or certificate of title to the department for cancellation. The owner of so that the manufactured
home shall give the department the address and legal description of the becomes an
improvement to
real property. The department may require the filing of other information
and is no longer titled as personal property
. The department must not issue a certificate of
title for a manufactured home under chapter 168A if the manufacturer's certificate of origin
is or has been surrendered under this subdivision, except as provided in section 168A.142.
Upon surrender of the manufacturer's certificate of origin or the certificate of title, the
department shall must issue notice of surrender to the owner, and upon recording an affidavit
of affixation, which the county recorder or registrar of titles, as applicable, must accept,
the
manufactured home is deemed to be an improvement to real property. The notice of surrender
may be recorded in the office of the county recorder or with the registrar of titles if the land
is registered but need not contain an acknowledgment.
An affidavit of affixation by the
owner of the manufactured home must include the following information:

(1) the name, residence address, and mailing address of owner or owners of the
manufactured home;

(2) the legal description of the real property in which the manufactured home is, or will
be, located;

(3) a copy of the surrendered manufacturer's certificate of origin or certificate of title
and the notice of surrender;

(4) a written statement from the county auditor or county treasurer of the county where
the manufactured home is located stating that all property taxes payable in the current year,
as provided under section 273.125, subdivision 8, paragraph (b), have been paid, or are not
applicable;

(5) the name and address of the person designated by the applicant to record the original
affidavit of affixation with the county recorder or registrar of titles for the county where the
real property is located; and

(6) the signature of the person who executes the affidavit, properly executed before a
person authorized to authenticate an affidavit in this state.

(b) The person designated in paragraph (a), clause (5), must record, or arrange for the
recording of, the affidavit of affixation, accompanied by the fees for recording and for
issuing a certified copy of the notice, including all attachments, showing the recording date.
Upon obtaining the certified copy of the notice under this paragraph, the person designated
in the affidavit must deliver the certified copy to the county auditor of the county in which
the real property to which the manufactured home was affixed is located.

(c) The department is not liable for any errors, omissions, misstatements, or other
deficiencies or inaccuracies in documents presented to the department under this section,
if the documents presented appear to satisfy the requirements of this section. The department
has no obligation to investigate the accuracy of statements contained in the documents.

Subd. 1a.

Affidavit form.

An affidavit of affixation must be in substantially the following
form and must contain the following information.

MANUFACTURED HOME AFFIDAVIT OF AFFIXATION

PURSUANT TO MINNESOTA STATUTES, SECTION 168A.141

Homeowner, being duly sworn, on his or her oath, states as follows:

1. Homeowner owns the manufactured home ("home") described as follows:

.
New/Used
Year
Manufacturer's
Name
Model Name or
Model No.
Manufacturer's
Serial No.
Length/Width

2. A copy of the surrendered manufacturer's certificate of origin or certificate of title is
attached.

3. A copy of the notice of surrender issued from the Minnesota Department of Public Safety
Driver and Vehicle Services is attached.

4. The home is or will be located at the following "Property Address":

.
Street or Route .
City .
County .
State .
Zip Code .

5. The legal description of the property address ("land") is as follows or as attached hereto:

.
.
.

6. The homeowner is the owner of the land.

7. The home is, or must be promptly upon delivery, anchored to the land by attachment to
a permanent foundation and connected to appropriate residential utilities (e.g., water, gas,
electricity, sewer).

8. The homeowner intends that the home be an immovable permanent improvement to the
land, free of any personal property security interest.

9. A copy of the written statement from the county auditor or county treasurer of the county
in which the manufactured home is then located, stating that all property taxes payable in
the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph
(b)), have been paid, or are not applicable, is attached.

10. The home must be assessed and taxed as an improvement to the land.

11. The name and address of the person designated by the homeowner to record the original
affidavit of surrender with the county recorder or registrar of titles of the county in which
the real estate is located is:

Name .
Street Address .
City, State, Zip Code .
Phone .
E-mail .

IN WITNESS WHEREOF, homeowner(s) have executed this affidavit on this ....... day of
......., 20...

.
.
Homeowner Signature
Address
.
.
Printed Name
City, State
.
Homeowner Signature (if applicable)
.
Printed Name

This instrument was drafted by, and when recorded return to:

.
.
.

Subscribed and sworn to before me this ....... day of ......., .......

......................................................................
Signature of Notary Public or Other Official

Notary Stamp or Seal

(optional)

Lender's Statement of Intent:

The undersigned ("lender") intends that the home be immovable and a permanent
improvement to the land free of any personal property security interest.

.
Lender
By: .
Authorized Signature
STATE OF .)
.) ss:
COUNTY OF .)

On the ....... day of ....... in the year ....... before me, the undersigned, a Notary Public in and
for said state, personally appeared

.

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

.
Notary Signature
.
Notary Printed Name
Notary Public, State of .
Qualified in the County of .
My commission expires .

Official seal:

Subd. 2.

Perfected security interest avoids cancellation prevents surrender.

The
department may not cancel a certificate of title if, under this chapter, a security interest has
been perfected on the manufactured home. If a security interest has been perfected, the
department shall must notify the owner and that each secured party that the must release or
satisfy the security interest prior to proceeding with surrender of the manufacturer's certificate
of origin or
certificate of title and a description of the security interest have been surrendered
to the department and that the department will not cancel the certificate of title until the
security interest is satisfied
for cancellation. Permanent attachment to real property or the
recording of an affidavit of affixation
does not extinguish an otherwise valid security interest
in or tax lien on the manufactured home, unless the requirements of section 168A.141,
subdivisions 1, 1a, and 2, including the release of any security interest, have been satisfied
.

Subd. 3.

Notice of security interest avoids surrender.

The manufacturer's certificate
of origin or the certificate of title need not be surrendered to the department under subdivision
1
When a perfected security interest exists, or will exist, on the manufactured home at the
time the manufactured home is affixed to real property, if and the owner has not satisfied
the requirements of section 168A.141, subdivision 1,
the owner of the manufactured home
files , or its secured party, may record a notice with the county recorder, or with the registrar
of titles, if the land is registered, stating that the manufactured home located on the property
is encumbered by a perfected security interest and is not an improvement to real property.
The notice must state the name and address of the secured party as set forth on the certificate
of title, the legal description of the real property, and the name and address of the record
fee owner of the real property on which the manufactured home is affixed. When the security
interest is released or satisfied, the secured party shall must attach a copy of the release or
satisfaction to a notice executed by the secured party containing the county recorder or
registrar of titles document number of the notice of security interest. The notice of release
or satisfaction must be filed recorded with the county recorder, or registrar of titles, if the
land is registered. Neither the notice described in this subdivision nor the security interest
on the certificate of title is deemed to be an encumbrance on the real property. The notices
provided for in this subdivision need not be acknowledged.

Sec. 43.

Minnesota Statutes 2016, section 168A.142, is amended to read:


168A.142 MANUFACTURED HOME UNAFFIXED FROM REALTY.

Subdivision 1.

Certificate of title requirements.

The department shall must issue an
initial certificate of title or reissue a previously surrendered certificate of title for a
manufactured home to an applicant if:

(1) for the purpose of affixing the manufactured home to real property, the owner of the
manufactured home, or a previous owner, surrendered the manufacturer's certificate of
origin or certificate of title to the department as provided in section 168A.141, subdivision
1 or 2;

(2) the applicant provides the written proof evidence specified in subdivision 2 that the
applicant owns (i) the manufactured home and (ii) the real property to which the
manufactured home was affixed as provided under section 273.125, subdivision 8, paragraph
(b)
;

(3) the applicant provides proof that no liens exist on the manufactured home, including
liens on the real property to which it is affixed; and

(4) (3) the owner of the manufactured home meets fulfills the applicable application
requirements of section 168A.04 , ; and

(4) the application is accompanied by a written statement from the county auditor or
county treasurer of the county in which the manufactured home is then located and affixed,
stating that all property taxes payable in the current year, as provided under section 273.125,
subdivision 8
, paragraph (b), have been paid.

Subd. 2.

Proof Evidence of eligibility for reissuance.

(a) The proof evidence required
under subdivision 1, clauses clause (2) and (3), is as follows:

(1) an affidavit of severance recorded in the office of the county recorder or registrar of
titles, which they shall accept, and whichever applies to the real property, of the county in
which
where the affidavit of affixation or notice of surrender was recorded under as required
in
section 168A.141, subdivision 1, and the affidavit of severance contains:

(i) the name, residence address, and mailing address of the owner or owners of the
manufactured home;

(ii) a description of the manufactured home being severed, including the name of the
manufacturer; the make, model number, model year, and dimensions, and if available, the
make, model year,
and manufacturer's serial number of the manufactured home; and whether
the manufactured home is new or used
, such information as may be available from the
previously recorded affidavit of affixation or notice of surrender as required in section
168A.141, subdivision 1
; and

(iii) a statement of any facts or information known to the person executing the affidavit
that could affect the validity of the title of the manufactured home or , the existence or
nonexistence of a security interest in the manufactured home or a lien on it, or , and a
statement that no such facts or information are known to the person executing the affidavit;

(2) as an attachment to the affidavit of severance, an opinion by an attorney admitted to
practice law in this state, stating:

(i) the nature of the examination of title performed prior to giving this opinion by the
person signing the opinion;

(ii) that the manufactured home and the real property on which it is located is not subject
to, or pending completion of a refinance, purchase, or sale transaction, and will not be
subject to
any recorded mortgages, security interests, liens, or other encumbrances of any
kind;

(iii) that the person signing the opinion knows of no facts or circumstances that could
affect the validity of the title of the manufactured home or the existence or nonexistence of
any recorded mortgages, security interests, or other encumbrances of any kind, other than
property taxes payable in the year the affidavit is signed;

(iv) the person or persons owning record title to the real property to which the
manufactured home has been affixed and the nature and extent of the title owned by each
of these persons; and

(v) that the person signing the opinion has reviewed all provisions of the affidavit of
severance and certifies that they are correct and complete to the best of the knowledge of
the person signing the opinion;

(3) the name and address of the person or , persons designated by the applicant to file a
certified copy of
the original affidavit of severance with the county auditor of the county
in which the real estate is located, after the affidavit has been properly recorded in the office
of
the county recorder or county registrar of titles, whichever applies to the real property;
and

(4) the signature of the person who executes the affidavit, properly executed before a
person authorized to authenticate an affidavit in this state.

(b) The person designated in paragraph (a), clause (3), shall must record, or arrange for
the recording of, the affidavit of severance as referenced in that item, accompanied by the
fees for recording and for issuing a certified copy of the affidavit, including all attachments,
showing the recording date.

(c) Upon obtaining the certified copy under paragraph (b), the person designated in the
affidavit shall must deliver the certified copy to the county auditor of the county in which
the real estate to which it was affixed is located.

(d) The department is not liable for any errors, omissions, misstatements, or other
deficiencies or inaccuracies in documents presented to the department under this section,
so long as the documents presented appear to satisfy the requirements of this section. The
department has no obligation to investigate the accuracy of statements contained in the
documents.

Subd. 3.

Affidavit form.

The affidavit of severance must be in substantially the following
form and must contain the following information.

MANUFACTURED HOME AFFIDAVIT OF SEVERANCE

PURSUANT TO MINNESOTA STATUTES, SECTION 168A.142

Homeowner, being duly sworn, on his or her oath, states as follows:

1. Homeowner owns the manufactured home ("home") described as follows:

.
New/Used
Year
Manufacturer's
Name
Model Name or
Model No.
Manufacturer's
Serial No.
Length/Width

2. A copy of the previously surrendered manufacturer's certificate of origin or certificate of
title is attached (if available).

3. A copy of the notice of surrender issued from the Minnesota Department of Public Safety
Driver and Vehicle Services is attached (if available).

4. The home is or will be located at the following "Property Address":

.
Street or Route .
City .
County .
State .
Zip Code .

5. The legal description of the property address ("land") is as follows or as attached:

.
.
.

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

.
.

7. The homeowner does not know of any such security interest in the manufactured home
which has not been satisfied or released.

8. A copy of an opinion by an attorney admitted to practice law in Minnesota is attached,
which provides for the required title evidence as set forth in Minnesota Statutes, section
168A.142, subdivision 2, clause (2), items (i) to (v).

9. A copy of the written statement from the county auditor or county treasurer of the county
in which the manufactured home is then located, stating that all property taxes payable in
the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph
(b)), have been paid, or are not applicable, is attached.

10. The name and address of the person designated by the homeowner to record the original
affidavit of surrender with the county recorder or registrar of titles of the county in which
the real estate is located is:

Name .
Street Address .
City, State, Zip Code .
Phone .
E-mail .

IN WITNESS WHEREOF, homeowner(s) have executed this affidavit on this ....... day of
......., 20...

.
.
Homeowner Signature
Address
.
.
Printed Name
City, State
.
Homeowner Signature (if applicable)
.
Printed Name

This instrument was drafted by, and when recorded return to:

.
.

Subscribed and sworn to before me this ....... day of ......., .......

......................................................................
Signature of Notary Public or Other Official

Notary Stamp or Seal

Sec. 44.

[168A.143] MANUFACTURED HOMES; OWNERSHIP AT ISSUE.

Subdivision 1.

Requirements for certificate issuance or reissuance.

When an applicant
is unable to obtain from or locate previous owners no longer holding an interest in the
manufactured home based on a certificate of title, or to locate, obtain, or produce the original
certificate of origin or certificate of title for a manufactured home, and there is no evidence
of a surrendered certificate of title or manufacturer's statement of origin as provided in
section 168A.141, subdivision 1, which has not otherwise been unaffixed or is being
unaffixed as provided in section 168A.142, the department must issue or reissue a certificate
of title to a manufactured home when the applicant submits:

(1) the application, pursuant to the requirements of section 168A.04, in a form prescribed
by the department;

(2) an affidavit that:

(i) identifies the name of the manufacturer and dimensions, and if available, the make,
model number, model year, and manufacturer's serial number of the manufactured home;
and

(ii) certifies the applicant is the owner of the manufactured home, has physical possession
of the manufactured home, knows of no facts or circumstances that materially affect the
validity of the title of the manufactured home as represented in the application, and provides
copies of such ownership documents, so far as the documents exist, including by way of
example:

(A) bill of sale;

(B) financing, replevin, or foreclosure documents;

(C) appraisal;

(D) insurance certification;

(E) personal property tax bill;

(F) landlord certification;

(G) affidavit of survivorship or estate documents;

(H) divorce decree; or

(I) court order;

(3) an affidavit by an attorney admitted to practice law in this state stating:

(i) the attorney has performed a search of the Minnesota Department of Public Safety
Driver and Vehicles Services records within 120 days of the date of application to obtain a
certificate of origin or certificate of title on behalf of the applicant, but was unable to
determine the names or locations of one or more owners or prior owners of the manufactured
home;

(ii) if applicable, the attorney was unable to successfully contact one or more owners,
or prior owners, after providing written notice 45 days prior to the registered and last known
owner by certified mail at the address shown on Driver and Vehicles Services records, or
if the last known address if different from Driver and Vehicles Services records, then also
the last known address as known to the applicant;

(iii) if the attorney is unable to contact one or more owners, or previous owners, by
sending a letter by certified mail, then the attorney must present to the department, as an
attachment to its affidavit, the returned letter as evidence of the attempted contact, or the
acknowledgment of receipt of the letter, together with an affidavit of nonresponse; and

(iv) the attorney knows of no facts or circumstances that materially affect the validity
of the title of the manufactured home as represented in the application, other than property
taxes payable in the year the affidavit is signed; and

(4) payment for required current year taxes and fees as prescribed by the department.

Subd. 2.

Satisfaction of manufactured home security lien; release.

A security interest
perfected under this chapter may be canceled seven years from the perfection date for a
manufactured home, upon the request of the owner of the manufactured home, if the owner
has paid the lien in full or the lien has been abandoned and the owner is unable to locate
the lienholder to obtain a lien release. The owner must send a letter to the lienholder by
certified mail, return receipt requested, stating the reason for the release and requesting a
lien release. If the owner is unable to obtain a lien release by sending a letter by certified
mail, then the owner must present to the department the returned letter as evidence of the
attempted contact, or the acknowledgment of receipt of the letter, together with a copy of
the letter and an owner affidavit of nonresponse.

Subd. 3.

Suspension or revocation of certificate.

(a) Pursuant to section 168A.23, the
department may revoke a previously issued certificate of title issued under this section.

(b) The department is not liable for any errors, omissions, misstatements, or other
deficiencies or inaccuracies in documents submitted to the department under this section,
provided the documents submitted appear to satisfy the requirements of this section. The
department is not required to investigate the accuracy of statements contained in submitted
documents.

Sec. 45.

Minnesota Statutes 2016, section 169.011, is amended by adding a subdivision
to read:


Subd. 1a.

All-electric vehicle.

(a) "All-electric vehicle" means an electric vehicle that
is solely able to be powered by an electric motor drawing current from rechargeable storage
batteries, fuel cells, or other portable sources of electrical current.

(b) All-electric vehicle excludes a plug-in hybrid electric vehicle.

EFFECTIVE DATE.

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

Sec. 46.

Minnesota Statutes 2016, section 169.011, subdivision 34, is amended to read:


Subd. 34.

Head Start bus.

(a) "Head Start bus" means a motor vehicle used to transport
children and parents to or from a Head Start facility, or to or from Head Start-related
activities, by the Head Start grantee, or by someone under an agreement with the Head Start
grantee. A Head Start bus does not include a motor vehicle transporting children or parents
to or from a Head Start facility for which parents or guardians receive direct compensation
from a Head Start grantee, a motor coach operating under charter carrier authority, or a
transit bus providing services as defined in section 174.22, subdivision 7. A Head Start bus
may be a type A, B, C, or D bus or type III vehicle, as described in subdivision 71.

(b) A Head Start bus manufactured after December 31, 1994, must meet the same
standards as a type A, B, C, or D school bus, except that a Head Start bus is not required to
be equipped with the warning signals required for a school bus under section 169.442,
subdivision 1
. A Head Start bus that is not equipped as a school bus must be painted colors
other than national school bus yellow.

Sec. 47.

Minnesota Statutes 2016, section 169.011, subdivision 47, is amended to read:


Subd. 47.

Neighborhood electric vehicle.

"Neighborhood electric vehicle" means an
electrically powered motor vehicle that has three or four wheels, and has a speed attainable
in one mile of at least 20 miles per hour but not more than 25 miles per hour on a paved
level surface.

Sec. 48.

Minnesota Statutes 2016, section 169.14, is amended by adding a subdivision to
read:


Subd. 5h.

St. Louis County Road 128.

Notwithstanding any provision to the contrary
in this section, the speed limit on St. Louis County Road 128 in Eagles Nest Township
between marked Trunk Highway 169 and County Road 989 is 40 miles per hour. The county
engineer must erect appropriate signs displaying the 40 miles per hour speed limit.

EFFECTIVE DATE.

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

Sec. 49.

Minnesota Statutes 2016, section 169.18, subdivision 5, is amended to read:


Subd. 5.

Driving left of roadway center; exception.

(a) No vehicle shall be driven to
the left side of the center of the roadway in overtaking and passing another vehicle proceeding
in the same direction unless such left side is clearly visible and is free of oncoming traffic
for a sufficient distance ahead to permit such overtaking and passing to be completely made
without interfering with the safe operation of any vehicle approaching from the opposite
direction or any vehicle overtaken. In every event the overtaking vehicle must return to the
right-hand side of the roadway before coming within 100 feet of any vehicle approaching
from the opposite direction.

(b) Except on a one-way roadway, no vehicle shall, in overtaking and passing another
vehicle or at any other time, be driven to the left half of the roadway under the following
conditions:

(1) when approaching the crest of a grade or upon a curve in the highway where the
driver's view along the highway is obstructed within a distance of 700 feet;

(2) when approaching within 100 feet of any underpass or tunnel, railroad grade crossing,
intersection within a city, or intersection outside of a city if the presence of the intersection
is marked by warning signs; or

(3) where official signs are in place prohibiting passing, or a distinctive centerline is
marked, which distinctive line also so prohibits passing, as declared in the Manual on
Uniform Traffic Control Devices adopted by the commissioner.

(c) Notwithstanding paragraph (b), clause (3), a motor vehicle may be driven to the left
side of the roadway to safely overtake a bicycle under the following circumstances:

(1) the bicycle is proceeding in the same direction as the motor vehicle;

(2) the driver of the motor vehicle either (i) provides a safe clearance distance, in no
case less than the greater of three feet or one-half the width of the motor vehicle, or (ii)
completely enters the left lane of the highway;

(3) the operator of the bicycle is not (i) making a left turn, or (ii) signaling that the bicycle
operator intends to make a left turn; and

(4) the driver of the motor vehicle complies with all other applicable requirements under
this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 50.

Minnesota Statutes 2016, section 169.18, subdivision 7, is amended to read:


Subd. 7.

Laned highway.

When any roadway has been divided into two or more clearly
marked lanes for traffic, the following rules, in addition to all others consistent herewith,
shall apply:

(a) A vehicle shall be driven as nearly as practicable entirely within a single lane and
shall not be moved from such lane until the driver has first ascertained that such movement
can be made with safety.

(b) Upon a roadway which is not a one-way roadway and which is divided into three
lanes, a vehicle shall not be driven in the center lane except when overtaking and passing
another vehicle where the roadway is clearly visible and such center lane is clear of traffic
within a safe distance, or in preparation for a left turn or where such center lane is at the
time allocated exclusively to traffic moving in the direction the vehicle is proceeding, and
is signposted to give notice of such allocation. The left lane of a three-lane roadway which
is not a one-way roadway shall not be used for overtaking and passing another vehicle.

(c) Official signs may be erected directing slow-moving traffic to use a designated lane
or allocating specified lanes to traffic moving in the same direction, and drivers of vehicles
shall obey the directions of every such sign.

(d) Whenever a bicycle lane has been established on a roadway, any person operating
a motor vehicle on such roadway shall not drive in the bicycle lane except to perform parking
maneuvers in order to park where parking is permitted, to enter or leave the highway, or to
prepare for a turn as provided in section 169.19, subdivision 1 , or to stop a school bus for
the purpose of receiving or discharging any person provided the school bus is equipped and
identified as provided in sections 169.441 and 169.442, subdivision 1, and the flashing red
signals are activated and stop-signal arm is extended
.

Sec. 51.

Minnesota Statutes 2016, section 169.224, subdivision 3, is amended to read:


Subd. 3.

Operation.

(a) A neighborhood electric vehicle or a medium-speed electric
vehicle may not be operated on a street or highway with a speed limit greater than 35 miles
per hour, except to make a direct crossing of that street or highway.

(b) A person may operate a three-wheeled neighborhood electric vehicle without a
two-wheeled vehicle endorsement, provided the person has a valid driver's license issued
under chapter 171.

Sec. 52.

Minnesota Statutes 2016, section 169.345, subdivision 1, is amended to read:


Subdivision 1.

Scope of privilege.

(a) A vehicle described in section 168.021, subdivision
1, paragraph (a), that prominently displays the certificate authorized by this section or that
bears the disability plate or plates issued under section 168.021 may be parked by or solely
for the benefit of a physically disabled person:

(1) in a designated parking space for disabled persons, as provided in section 169.346;

(2) in a metered parking space without obligation to pay the meter fee and without time
restrictions unless time restrictions are separately posted on official signs; and

(3) without time restrictions in a nonmetered space where parking is otherwise allowed
for passenger vehicles but restricted to a maximum period of time and that does not
specifically prohibit the exercise of disabled parking privileges in that space.

A person may park the vehicle for a physically disabled person in a parking space described
in clause (1) or (2) only when actually transporting the physically disabled person for the
sole benefit of that person and when the parking space is within a reasonable distance from
the drop-off point.

(b) For purposes of this subdivision, a certificate is prominently displayed if it is displayed
so that it may be viewed from the front and rear of the motor vehicle by hanging it from the
rearview mirror attached to the front windshield of the motor vehicle or, in the case of a
motorcycle or a motorized bicycle, is secured to the vehicle. If there is no rearview mirror
or if the certificate holder's disability precludes placing the certificate on the mirror, the
certificate must be displayed on the dashboard of the vehicle. No part of the certificate may
be obscured.

(c) Notwithstanding paragraph (a), clauses (1), (2), and (3), this section does not permit
parking in areas prohibited by sections 169.32 and 169.34, in designated no parking spaces,
or in parking spaces reserved for specified purposes or vehicles. A local governmental unit
may, by ordinance, prohibit parking on any street or highway to create a fire lane, or to
accommodate heavy traffic during morning and afternoon rush hours and these ordinances
also apply to physically disabled persons.

EFFECTIVE DATE.

This section is effective January 1, 2018.

Sec. 53.

Minnesota Statutes 2016, section 169.345, subdivision 3, is amended to read:


Subd. 3.

Identifying certificate.

(a) The commissioner shall issue (1) immediately, a
permit valid for 30 days if the person is eligible for the certificate issued under this section
and (2) an identifying certificate for a vehicle described in section 168.021, subdivision 1,
paragraph (a), when a physically disabled applicant submits proof of physical disability
under subdivision 2a. The commissioner shall design separate certificates for persons with
permanent and temporary disabilities that can be readily distinguished from each other from
outside a vehicle at a distance of 25 feet or, in the case of a motorcycle or a motorized
bicycle
, can be readily secured to the motorcycle or motorized bicycle. An applicant may
be issued up to two certificates if the applicant has not been issued disability plates under
section 168.021.

(b) The operator of a vehicle displaying a certificate has the parking privileges provided
in subdivision 1 only while the vehicle is actually parked while transporting a physically
disabled person.

(c) The commissioner shall cancel all certificates issued to an applicant who fails to
comply with the requirements of this subdivision.

EFFECTIVE DATE.

This section is effective January 1, 2018.

Sec. 54.

Minnesota Statutes 2016, section 169.442, subdivision 5, is amended to read:


Subd. 5.

White strobe lamps on certain buses transporting children.

(a)
Notwithstanding section 169.55, subdivision 1, or 169.57, subdivision 3, paragraph (b), or
other law to the contrary, a school bus that is subject to and complies with the equipment
requirements of subdivision 1 and section 169.441, subdivision 1, or a Head Start bus that
is not a type III vehicle defined in section 169.011, subdivision 71
, may be equipped with
a flashing strobe lamp. The lamp may be used only as provided in this subdivision.

(b) The lamp must be permanently mounted on the longitudinal centerline of the bus
roof not less than two feet forward of the rear roof edge.

(c) The strobe lamp may be lighted only when atmospheric conditions or terrain restrict
the visibility of school bus lamps and signals or Head Start bus lamps and signals so as to
require use of the bright strobe lamp to alert motorists to the presence of the school bus or
Head Start bus. A strobe lamp may not be lighted unless the school bus or Head Start bus
is actually being used as a school bus or Head Start bus.

Sec. 55.

Minnesota Statutes 2016, section 169.443, subdivision 2, is amended to read:


Subd. 2.

Use of stop-signal arm.

(a) The stop-signal arm system of a school bus must
be used in conjunction with the flashing red signals only when the school bus is stopped on
a street or highway to load or unload school children.

(b) A local authority, including the governing body of an Indian tribe, may by ordinance
require that a school bus activate the stop-signal arm system and flashing red signals while
stopped to unload school children at a location other than a location on a street or highway.
The ordinance must designate each location where the requirement is imposed. The
requirement is effective only if the local authority has erected signs at or near the location
to provide adequate notice that other vehicles are required to obey section 169.444,
subdivision 1
, when those signals are activated.

(c) A school bus driver is prohibited from loading or unloading passengers in a designated
right-turn lane or in a lane immediately adjacent to a designated right-turn lane unless:

(1) a school bus stop designated by the district transportation safety director is located
in the right-turn lane;

(2) the driver stops the bus at the extreme right side of the right-turn lane; and

(3) the driver activates the prewarning flashing amber signals, flashing red signals, and
stop-signal arm, unless the school board or its designee, based on safety considerations,
provides written direction to the driver not to do so.

Sec. 56.

Minnesota Statutes 2016, section 169.444, subdivision 2, is amended to read:


Subd. 2.

Violations by drivers; penalties.

(a) A person who fails to stop a vehicle or
to keep it stopped, as required in subdivision 1, or who violates subdivision 1a, is guilty of
a misdemeanor punishable by a fine of not less than $300 $500.

(b) A person is guilty of a gross misdemeanor if the person fails to stop a motor vehicle
or to keep it stopped, as required in subdivision 1, or who violates subdivision 1a, and
commits either or both of the following acts:

(1) passes or attempts to pass the school bus in a motor vehicle on the right-hand,
passenger-door side of the bus; or

(2) passes or attempts to pass the school bus in a motor vehicle when a school child is
outside of and on the street or highway used by the school bus or on the adjacent sidewalk.

EFFECTIVE DATE.

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

Sec. 57.

Minnesota Statutes 2016, section 169.449, subdivision 1, is amended to read:


Subdivision 1.

Rules.

The commissioner of public safety shall adopt rules governing
the operation of school buses used for transportation of school children, when owned or
operated by a school or privately owned and operated under a contract with a school, and
these rules must be made a part of that contract by reference
. Each school, its officers and
employees, and each person employed under the contract is subject to these rules.

Sec. 58.

Minnesota Statutes 2016, section 169.4501, subdivision 1, is amended to read:


Subdivision 1.

National standards adopted.

Except as provided in sections 169.4502
and 169.4503, the construction, design, equipment, and color of types A, B, C, D school
buses and multifunction school activity buses used for the transportation of school children
shall meet the requirements of the "bus body and chassis specifications" in the 2010 most
recent
edition of the "National School Transportation Specifications and Procedures" adopted
by the National Congress on School Transportation. Except as provided in section 169.4504,
the construction, design, and equipment of types A, B, C, D school buses and multifunction
school activity buses used for the transportation of students with disabilities also shall meet
the requirements of the "specially equipped school bus specifications" in the 2010 National
School Transportation Specifications and Procedures. The "bus body and chassis
specifications" and "specially equipped school bus specifications" sections of the 2010 most
recent
edition of the "National School Transportation Specifications and Procedures,"
adopted by the Fifteenth National Congress on School Transportation, are incorporated by
reference in this chapter.

Sec. 59.

Minnesota Statutes 2016, section 169.4501, subdivision 2, is amended to read:


Subd. 2.

Applicability.

(a) The standards adopted in this section and sections 169.4502
and 169.4503, govern the construction, design, equipment, and color of school buses used
for the transportation of school children, when owned or leased and operated by a school
or privately owned or leased and operated under a contract with a school. Each school, its
officers and employees, and each person employed under the contract is subject to these
standards.

(b) The standards apply to school buses manufactured after December 31, 2012 August
1 of the year following a year in which a revised edition of the National School Transportation
Specifications and Procedures is adopted
. Buses complying with the standards when
manufactured need not comply with standards established later except as specifically provided
for by law.

(c) A school bus manufactured on or before December 31, 2012, the date provided by
paragraph (b)
must conform to the Minnesota standards in effect on the date the vehicle
was manufactured except as specifically provided for in law.

(d) A new bus body may be remounted on a used chassis provided that the remounted
vehicle meets state and federal standards for new buses which are current at the time of the
remounting. Permission must be obtained from the commissioner of public safety before
the remounting is done. A used bus body may not be remounted on a new or used chassis.

Sec. 60.

Minnesota Statutes 2016, section 169.4503, subdivision 4, is amended to read:


Subd. 4.

Certification.

Upon request, a body manufacturer, or school bus dealer, or
certified Minnesota commercial vehicle inspector who is also an employee of an organization
purchasing a school bus shall
must provide preliminary certification to the Department of
Public Safety that the product meets Minnesota standards. Final certification will be granted
within 30 days upon reinspection by the Department of Public Safety.

Sec. 61.

Minnesota Statutes 2016, section 169.4503, subdivision 7, is amended to read:


Subd. 7.

Floor construction.

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

Sec. 62.

Minnesota Statutes 2016, section 169.4503, subdivision 14, is amended to read:


Subd. 14.

Insulation.

(a) Thermal insulation is required. It shall be fire-resistant, UL
approved, with minimum R-value of 5.5. Insulation shall be installed so as to prevent
sagging.

(b) Floor insulation is required. It shall be five-ply nominal five-eighths-inch-thick
plywood, and shall equal or exceed properties of the exterior-type softwood plywood, C-D
Grade, as specified in the standard issued by United States Department of Commerce. All
exposed edges on plywood shall be sealed. Type A-I buses shall be equipped with nominal
one-half-inch-thick plywood or equivalent material meeting the above requirements.
Equivalent material may be used to replace plywood, provided it has an equal or greater
insulation R value, deterioration, sound abatement, and moisture resistance properties.

Sec. 63.

Minnesota Statutes 2016, section 169.4503, subdivision 23, is amended to read:


Subd. 23.

Windows.

(a) Windshield, entrance, and rear emergency exit doors must be
of approved safety glass. Laminated or tempered glass (AS-2 or AS-3) is permitted in all
other windows. All glass shall be federally approved and marked as provided in section
169.74. The windshield may be of uniform tint throughout or may have a horizontal gradient
band starting slightly above the line of vision and gradually decreasing in light transmission
to 20 percent or less at the top of the windshield.

(b) The use of tinted glass, as approved by section 169.71, is permitted on side windows
and rear windows except for the entrance door, the first window behind the service door,
and the window to the left of the driver. The window to the left of the driver, and the upper
service door windows, and the window immediately behind the entrance door must be
thermal glass. Regardless of a bus's date of manufacture, the window immediately behind
the entrance door does not need to be made of thermal glass.
The window to the left of the
driver for type A buses need not be thermal glass.

Sec. 64.

Minnesota Statutes 2016, section 169.4503, subdivision 30, is amended to read:


Subd. 30.

Video or mobile surveillance systems.

Camera heads for video or mobile
surveillance may be mounted in the driver compartment area, midbus, or on a rear interior
bulkhead in the student passenger area. For buses manufactured or retrofitted with a
surveillance system after December 31, 2012, cameras mounted midbus must be parallel
to a seat back, must not have any sharp edges, must not extend outward more than three
3-1/2 inches, and must be located within 24 inches of the top of the side window of the bus.

Sec. 65.

Minnesota Statutes 2016, section 169.64, subdivision 8, is amended to read:


Subd. 8.

Strobe lamp.

(a) Notwithstanding sections 169.55, subdivision 1; 169.57,
subdivision 3
, paragraph (b); or any other law to the contrary, a vehicle may be equipped
with a 360-degree flashing strobe lamp that emits a white light with a flash rate of 60 to
120 flashes a minute, and the lamp may be used as provided in this subdivision, if the vehicle
is:

(1) a school bus that is subject to and complies with the equipment requirements of
sections 169.441, subdivision 1, and 169.442, subdivision 1, or a Head Start bus that is not
a type III vehicle as defined in section 169.011, subdivision 71
. The lamp shall be
permanently mounted on the longitudinal centerline of the bus roof not less than two feet
nor more than seven feet forward of the rear roof edge. It shall
must operate from a separate
switch containing an indicator lamp to show when the strobe lamp is in use. The strobe
lamp may be lighted only when atmospheric conditions or terrain restrict the visibility of
school bus lamps and signals or Head Start bus lamps and signals so as to require use of
the bright strobe lamp to alert motorists to the presence of the school bus or Head Start bus.
A strobe lamp may not be lighted unless the school bus or Head Start bus is actually being
used as a school bus or Head Start bus
; or

(2) a road maintenance vehicle owned or under contract to the Department of
Transportation or a road authority of a county, home rule or statutory city, or town, but the
strobe lamp may only be operated while the vehicle is actually engaged in snow removal
during daylight hours.

(b) Notwithstanding sections 169.55, subdivision 1; 169.57, subdivision 3, paragraph
(b); or any other law to the contrary, a vehicle may be equipped with a 360-degree flashing
strobe lamp that emits an amber light with a flash rate of 60 to 120 flashes a minute, and
the lamp may be used as provided in this subdivision, if the vehicle is a rural mail carrier
vehicle, provided that the strobe lamp is mounted at the highest practicable point on the
vehicle. The strobe lamp may only be operated while the vehicle is actually engaged during
daylight hours in the delivery of mail to residents on a rural mail route.

(c) A strobe lamp authorized by this section shall be of a double flash type certified to
the commissioner of public safety by the manufacturer as being weatherproof and having
a minimum effective light output of 200 candelas as measured by the Blondel-Rey formula.

Sec. 66.

Minnesota Statutes 2016, section 169.80, subdivision 1, is amended to read:


Subdivision 1.

Limitations; misdemeanor.

(a) It is a misdemeanor for a person to drive
or move, or for the owner to cause or knowingly permit to be driven or moved, on a highway
a vehicle or vehicles of a size or weight exceeding the limitations stated in sections 169.80
to 169.88, or otherwise in violation of sections 169.80 to 169.88, other than section 169.81,
subdivision 5a
, and the maximum size and weight of vehicles as prescribed in sections
169.80 to 169.88 shall be lawful throughout this state, and local authorities shall have no
power or authority to alter these limitations except as express authority may be granted in
sections 169.80 to 169.88.

(b) When all the axles of a vehicle or combination of vehicles are weighed separately
the sum of the weights of the axles so weighed shall be evidence of the total gross weight
of the vehicle or combination of vehicles so weighed.

(c) When each of the axles of any group that contains two or more consecutive axles of
a vehicle or combination of vehicles have been weighed separately the sum of the weights
of the axles so weighed shall be evidence of the total gross weight on the group of axles so
weighed.

(d) When, in any group of three or more consecutive axles of a vehicle or combination
of vehicles any axles have been weighed separately and two or more axles consecutive to
each other in the group have been weighed together, the sum of the weights of the axles
weighed separately and the axles weighed together shall be evidence of the total gross weight
of the group of axles so weighed.

(e) The provisions of sections 169.80 to 169.88 governing size, weight, and load shall
do
not apply to a fire apparatus, or to a vehicle operated under the terms of a special permit
issued as provided by law.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 67.

Minnesota Statutes 2016, section 169.829, is amended by adding a subdivision
to read:


Subd. 4.

Certain emergency vehicles.

The provisions of sections 169.80 to 169.88
governing size, weight, and load do not apply to a fire apparatus, a law enforcement special
response vehicle, or a licensed land emergency ambulance service vehicle.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 68.

Minnesota Statutes 2016, section 169.864, is amended by adding a subdivision
to read:


Subd. 2a.

Special tire-hauling permit.

(a) The commissioner may issue a permit
authorizing a vehicle used exclusively to haul earthmover tires, if the vehicle:

(1) is a combination of vehicles with seven or more axles, consisting of a truck with
loader and trailer, which may be equipped with an auxiliary dolly;

(2) has a maximum gross vehicle weight of 108,000 pounds;

(3) has a maximum width of 144 inches;

(4) does not exceed the axle weight limits in sections 169.823, subdivision 1, clause (2),
and 169.824, by more than 22 percent;

(5) complies with the tire weight limits in section 169.823, or the tire manufacturer's
recommended load, whichever is less; and

(6) is operated only on the highways specified in subdivision 1, clause (5).

(b) The seasonal weight increases authorized under section 169.826, subdivision 1, do
not apply to permits issued under this subdivision.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 69.

Minnesota Statutes 2016, section 169.864, subdivision 3, is amended to read:


Subd. 3.

Restrictions.

Vehicles issued permits under subdivisions 1 and , 2, and 2a,
must comply with the following restrictions:

(1) the vehicle must be operated in compliance with seasonal load restrictions under
section 169.87;

(2) the vehicle may not be operated on the interstate highway system; and

(3) the vehicle may be operated on streets or highways under the control of local
authorities only upon the approval of the local authority; however, vehicles may have
reasonable access to terminals and facilities for food, fuel, repairs, and rest and for continuity
of route within one mile of the national network as provided by section 169.81, subdivision
3
, and by Code of Federal Regulations, title 23, section 658.19.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 70.

Minnesota Statutes 2016, section 169.864, subdivision 4, is amended to read:


Subd. 4.

Permit fee; appropriation.

Vehicle permits issued under subdivision 1, clause
(1), must be annual permits. The fee is $850 for each vehicle combination and must be
deposited in the trunk highway fund. The fee for annual permits issued under subdivision
2 is $300 for a 90,000-pound vehicle combination or $500 for a 97,000-pound vehicle
combination. The fee for annual permits issued under subdivision 2a is $850. An amount
sufficient to administer the permit program is appropriated from the trunk highway fund to
the commissioner for the costs of administering the permit program.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 71.

Minnesota Statutes 2016, section 169.865, subdivision 3, is amended to read:


Subd. 3.

Requirements; restrictions.

(a) A vehicle or combination of vehicles operating
under this section:

(1) is subject to axle weight limitations under section 169.824, subdivision 1;

(2) is subject to seasonal load restrictions under section 169.87;

(3) is subject to bridge load limits posted under section 169.84;

(4) may only be operated on paved streets and highways other than interstate highways;

(5) may not be operated with loads that exceed the manufacturer's gross vehicle weight
rating as affixed to the vehicle, or other certification of gross vehicle weight rating complying
with Code of Federal Regulations, title 49, sections 567.4 to 567.7;

(6) must be issued a permit from each road authority having jurisdiction over a road on
which the vehicle is operated, if required;

(7) must comply with the requirements of section 169.851, subdivision 4; and

(8) must have brakes on all wheels.

(b) The percentage allowances for exceeding gross weights if transporting unfinished
forest products under section 168.013, subdivision 3, paragraph (b), or for the first haul of
unprocessed or raw farm products or unfinished forest products under section 168.013,
subdivision 3
, paragraph (d), clause (3), do not apply to a vehicle or combination of vehicles
operated under this section.

(c) Notwithstanding paragraph (a), clause (4), a vehicle or combination of vehicles
hauling fluid milk under a permit issued by the commissioner of transportation may also
operate on interstate highways as provided under United States Code, title 23, section 127.

Sec. 72.

[169.869] ROAD CONSTRUCTION MATERIALS SPECIAL PERMIT.

Subdivision 1.

Definition.

For purposes of this section, "road construction materials"
means street or highway construction materials, including but not limited to aggregate
material as defined in section 298.75, subdivision 1, paragraph (a), hot mix asphalt, plastic
concrete, cementitious materials, concrete admixtures, asphalt cement, and recycled road
materials.

Subd. 2.

Six-axle vehicles.

(a) A road authority may issue an annual permit authorizing
a vehicle or combination of vehicles with a total of six or more axles to haul road construction
materials and be operated with a gross vehicle weight of up to:

(1) 90,000 pounds; and

(2) 99,000 pounds during the period set by the commissioner under section 169.826,
subdivision 1.

(b) The fee for a permit issued under this subdivision is $300, or a proportional amount
as provided in section 169.86, subdivision 5.

Subd. 3.

Seven-axle vehicles.

(a) A road authority may issue an annual permit authorizing
a vehicle or combination of vehicles with a total of seven or more axles to haul road
construction materials and be operated with a gross vehicle weight of up to:

(1) 97,000 pounds; and

(2) 99,000 pounds during the period set by the commissioner under section 169.826,
subdivision 1.

(b) The fee for a permit issued under this subdivision is $500, or a proportional amount
as provided in section 169.86, subdivision 5.

Subd. 4.

Authority; restrictions.

A vehicle or combination of vehicles operating under
this section:

(1) may only be operated on paved or unpaved streets and highways, other than interstate
highways;

(2) must comply with the requirements and restrictions in section 169.865, subdivision
3, paragraph (a), clauses (1) to (3), (5), (7), and (8); and

(3) must be operated in compliance with truck route requirements and vehicle weight
restrictions, as established under section 169.87, subdivision 1, by a local road authority or
the commissioner.

Subd. 5.

Revenues.

Revenue from the permits issued by the commissioner under this
section must be deposited in the bridge inspection and signing account under section 169.86,
subdivision 5b.

Subd. 6.

Expiration date.

Upon request of the permit applicant, the expiration date for
a permit issued under this section must be the same as the expiration date of the permitted
vehicle's registration.

Subd. 7.

Permit information.

The commissioner must make information available to
local road authorities on an Internet Web site that identifies permit issuances under this
section and the counties in which a vehicle with a permit is intended to be operated.

Subd. 8.

Local preferred routes.

A local road authority may identify local preferred
routes for operating a vehicle on local streets and highways under a permit issued in this
section. A holder of a permit issued in this section and any person seeking to apply for a
permit are encouraged to:

(1) upon request of a local road authority, provide comment on identification of preferred
routes; and

(2) make reasonable efforts to operate a vehicle on the preferred routes when operating
under the permit.

EFFECTIVE DATE.

This section is effective January 1, 2018.

Sec. 73.

Minnesota Statutes 2016, section 171.02, subdivision 2b, is amended to read:


Subd. 2b.

Exception for type III vehicle drivers.

(a) Notwithstanding subdivision 2,
the holder of a class A, B, C, or D driver's license, without a school bus endorsement, may
operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h), under
the conditions in paragraphs (b) through (o) this subdivision.

(b) The operator is an employee of the entity that owns, leases, or contracts for the school
bus.

(c) The operator's employer has adopted and implemented a policy that provides for
annual training and certification of the operator in:

(1) safe operation of a type III vehicle;

(2) understanding student behavior, including issues relating to students with disabilities;

(3) encouraging orderly conduct of students on the bus and handling incidents of
misconduct appropriately;

(4) knowing and understanding relevant laws, rules of the road, and local school bus
safety policies;

(5) handling emergency situations;

(6) proper use of seat belts and child safety restraints;

(7) performance of pretrip vehicle inspections;

(8) safe loading and unloading of students, including, but not limited to:

(i) utilizing a safe location for loading and unloading students at the curb, on the nontraffic
side of the roadway, or at off-street loading areas, driveways, yards, and other areas to
enable the student to avoid hazardous conditions;

(ii) refraining from loading and unloading students in a vehicular traffic lane, on the
shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;

(iii) avoiding a loading or unloading location that would require a pupil to cross a road,
or ensuring that the driver or an aide personally escort the pupil across the road if it is not
reasonably feasible to avoid such a location;

(iv) placing the type III vehicle in "park" during loading and unloading; and

(v) escorting a pupil across the road under item (iii) only after the motor is stopped, the
ignition key is removed, the brakes are set, and the vehicle is otherwise rendered immobile;
and

(9) compliance with paragraph (k), concerning reporting certain convictions to the
employer within ten days of the date of conviction.

(d) A background check or background investigation of the operator has been conducted
that meets the requirements under section 122A.18, subdivision 8, or 123B.03 for school
district employees; section 144.057 or chapter 245C for day care employees; or section
171.321, subdivision 3, for all other persons operating a type III vehicle under this
subdivision.

(e) Operators shall submit to a physical examination as required by section 171.321,
subdivision 2
.

(f) The operator's employer requires preemployment drug testing of applicants for
operator positions. Current operators must comply with the employer's policy under section
181.951, subdivisions 2, 4, and 5. Notwithstanding any law to the contrary, the operator's
employer may use a Breathalyzer or similar device to fulfill random alcohol testing
requirements.

(g) The operator's driver's license is verified annually by the entity that owns, leases, or
contracts for the type III vehicle as required under section 171.321, subdivision 5.

(h) A person who sustains a conviction, as defined under section 609.02, of violating
section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked under
sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of violating
or whose driver's license is revoked under a similar statute or ordinance of another state, is
precluded from operating a type III vehicle for five years from the date of conviction.

(i) A person who has ever been convicted of a disqualifying offense as defined in section
171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under this
subdivision.

(j) A person who sustains a conviction, as defined under section 609.02, of a moving
offense in violation of chapter 169 within three years of the first of three other moving
offenses is precluded from operating a type III vehicle for one year from the date of the last
conviction.

(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) while
employed by the entity that owns, leases, or contracts for the school bus, shall report the
conviction to the employer within ten days of the date of the conviction.

(l) An operator of a type III vehicle whose driver's license is suspended, revoked,
canceled, or disqualified by Minnesota, another state, or another jurisdiction must notify
the operator's employer in writing of the suspension, revocation, cancellation, lost privilege,
or disqualification. The operator must notify the operator's employer before the end of the
business day immediately following the day the operator received notice of the suspension,
revocation, cancellation, lost privilege, or disqualification.

(m) Students riding the type III vehicle must have training required under section
123B.90, subdivision 2.

(m) (n) Documentation of meeting the requirements listed in this subdivision must be
maintained under separate file at the business location for each type III vehicle operator.
The business manager, school board, governing body of a nonpublic school, or any other
entity that owns, leases, or contracts for the type III vehicle operating under this subdivision
is responsible for maintaining these files for inspection.

(n) (o) The type III vehicle must bear a current certificate of inspection issued under
section 169.451.

(o) (p) An employee of a school or of a school district, who is not employed for the sole
purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).

Sec. 74.

Minnesota Statutes 2016, section 171.06, subdivision 2a, is amended to read:


Subd. 2a.

Two-wheeled vehicle endorsement fee.

(a) The fee for any duplicate driver's
license obtained for the purpose of adding a two-wheeled vehicle endorsement is increased
by $18.50 for each first such duplicate license and $13 for each renewal thereof. The
additional fee must be paid into the state treasury and credited as follows:

(1) $11 of the additional fee for each first duplicate license, and $7 of the additional fee
for each renewal, must be credited to the motorcycle safety fund, which is hereby created;
provided that ten percent of fee receipts in excess of $750,000 in a fiscal year must be
credited to the general fund
.

(2) The remainder of the additional fee must be credited to the general fund.

(b) All application forms prepared by the commissioner for two-wheeled vehicle
endorsements must clearly state the amount of the total fee that is dedicated to the motorcycle
safety fund.

Sec. 75.

Minnesota Statutes 2016, section 171.061, subdivision 3, as amended by Laws
2017, chapter 76, section 12, is amended to read:


Subd. 3.

Application.

An applicant may file an application with an agent. The agent
shall receive and accept applications in accordance with the laws and rules of the Department
of Public Safety for a noncompliant driver's license or identification card; an enhanced
driver's license or identification card; a REAL ID compliant driver's license or identification
card; restricted license; duplicate license; instruction permit; or motorized bicycle operator's
permit. Application records must be maintained at the office of the agent in a manner that
complies with sections 13.05, subdivision 5, and 13.055. As an alternative to paper copy
storage, an agent may retain records and documents in a secure electronic medium that
complies with the security requirements under the United States Federal Bureau of
Investigation, Criminal Justice Information Services Division, Policy 5.4 or any successor
policy, provided 60 days have elapsed since the transaction and subject to standards
established by the commissioner. The agent is responsible for all costs associated with the
conversion to electronic records and maintenance of the electronic storage medium, including
the destruction of existing paper records after conversion to the electronic format. All queries
and responses in the secure electronic medium, and all actions in which data are entered,
updated, accessed, or shared or disseminated by the agent must be contained in a data audit
trail. Data contained in the audit trail are public to the extent the data are not otherwise
classified under this section.

Sec. 76.

Minnesota Statutes 2016, section 171.12, subdivision 6, is amended to read:


Subd. 6.

Certain convictions not recorded.

(a) Except as provided in paragraph (c),
the department shall must not keep on the record of a driver any conviction for a violation
of a speed limit of 55 miles per hour unless the violation consisted of a speed greater than
ten miles per hour in excess of the speed limit.

(b) Except as provided in paragraph (c), the department shall must not keep on the record
of a driver any conviction for a violation of a speed limit of 60 miles per hour unless the
violation consisted of a speed greater than:

(1) ten miles per hour in excess of the speed limit, for any violation occurring on or after
August 1, 2012, and before August 1, 2014; or

(2) five miles per hour in excess of the speed limit, for any violation occurring on or
after August 1, 2014
.

(c) This subdivision does not apply to (1) a violation that occurs in a commercial motor
vehicle, or (2) a violation committed by a holder of a class A, B, or C commercial driver's
license or commercial driver learner's permit, without regard to whether the violation was
committed in a commercial motor vehicle or another vehicle.

Sec. 77.

Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to
read:


Subd. 7a.

Abandoned and discontinued.

"Abandoned and discontinued" means an
outdoor advertising device that ceases to display advertising copy for a minimum of one
year and is not otherwise being actively marketed to display advertising copy.

Sec. 78.

Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to
read:


Subd. 17a.

Conforming.

"Conforming" means an outdoor advertising device that
complies with the requirements of this chapter.

Sec. 79.

Minnesota Statutes 2016, section 173.02, subdivision 18, is amended to read:


Subd. 18.

Commercial or industrial activity.

(a) "Commercial or industrial activity"
for the purposes of unzoned commercial or industrial areas means an activity generally
recognized as commercial or industrial by zoning authorities in this state, except that .

(b) None of the following activities shall be considered commercial or industrial:

(1) outdoor advertising devices. ;

(2) agricultural, forestry, ranching, grazing, farming and related activities, including,
but not limited to, temporary wayside fresh produce stands. ;

(3) transient or temporary activities. ;

(4) activities not visible from the main-traveled way. ;

(5) activities more than 660 feet from the nearest edge of the right-of-way. ;

(6) activities conducted in a building principally used as a residence. ;

(7) railroad tracks and minor sidings. ;

(8) advertising located on vehicles or tractor trailers;

(9) commercial establishments or businesses that have ceased to exist or operate; or

(10) a business created to install new outdoor advertising devices.

Sec. 80.

Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to
read:


Subd. 21a.

Nonconforming.

"Nonconforming" means an outdoor advertising device
that was lawfully erected and has been maintained lawfully but does not comply with the
requirements of this chapter. A nonconforming sign is one that remains in substantially the
same condition it was on the effective date of this chapter.

Sec. 81.

Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to
read:


Subd. 21b.

Off-premise

"Off-premise" means an outdoor advertising device that
advertises or pertains to any business, product, person, activity, event, or service that is not
primarily conducted, sold, manufactured, offered, or located on the property where the sign
is located.

Sec. 82.

Minnesota Statutes 2016, section 173.02, subdivision 23, is amended to read:


Subd. 23.

Scenic area.

"Scenic area" means an area within which control and regulation
of the erection and maintenance of advertising devices may be exercised to the extent herein
provided and such areas shall include only those established as such by the commissioner
of transportation. Scenic area includes a scenic byway under United States Code, title 23,
section 162.

Sec. 83.

Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to
read:


Subd. 23a.

Scenic byways.

"Scenic byways" means roads that recognize outstanding
scenic, cultural, historic, natural, recreational, and archaeological qualities and landscapes
pursuant to United States Code, title 23, section 162.

Sec. 84.

Minnesota Statutes 2016, section 173.06, subdivision 1, is amended to read:


Subdivision 1.

Authority.

The commissioner of transportation shall must adopt and
may modify, amend, or repeal rules governing the issuance of permits or renewals thereof
for the erection and
maintenance of legal nonconforming advertising devices within scenic
areas; provided that the commissioner shall not adopt, modify, amend, or repeal any rule
that will impair any agreement with between the state and the federal government under
this chapter
. The commissioner of transportation may limit the application of any rule
adopted by the commissioner to exclude or include in whole or in part, specified areas within
the scenic area based upon use, nature of the surrounding community, or such other factors
as may make separate classification or rule necessary or desirable.

Sec. 85.

Minnesota Statutes 2016, section 173.07, subdivision 1, is amended to read:


Subdivision 1.

Forms; content.

Application for permits or renewals thereof for the
placement and maintenance of advertising devices within scenic areas shall must be on
forms prescribed by the commissioner and shall contain such information as the commissioner
may require. No advertising device shall be placed without the consent of the owner or
occupant of the land, and adequate proof of such consent shall be submitted to the
commissioner at the time application is made for such permits or renewals. A permit is
required to access state right-of-way to maintain an advertising device.

Sec. 86.

Minnesota Statutes 2016, section 173.08, is amended by adding a subdivision to
read:


Subd. 3.

Seed sign exemption.

Crop varietal and seed corn signs adjacent to interstate
and primary highways may be erected if the device:

(1) is located on demonstration plats;

(2) is located on private property;

(3) does not violate section 160.27 or 160.2715; and

(4) does not reference an off-site address where the product may be sold.

Sec. 87.

Minnesota Statutes 2016, section 173.08, is amended by adding a subdivision to
read:


Subd. 4.

Violations; removal.

The Department of Transportation may remove signs
that violate this section using the removal procedures under section 173.13, subdivision 11.

Sec. 88.

Minnesota Statutes 2016, section 173.13, subdivision 11, is amended to read:


Subd. 11.

Removal of advertising device for noncompliance.

Advertising devices
erected or maintained after June 8, 1971, not complying with Laws 1971, chapter 883, and
not otherwise by Laws 1971, chapter 883, permitted to stand
this chapter may be removed
by the commissioner upon 60 days prior written notice by certified mail to the owner thereof
of the advertising device
and to the owner of the real property on which such the advertising
device is located, provided that . No notice shall be is required to be given to the owner of
an advertising device whose name is not stated upon the advertising device or the structure
on which it is displayed, unless the name of such the owner is otherwise reasonably known
to the commissioner. The owner of the removed device is liable to the state for the costs of
removal.
The period of such notice shall be is computed from the date of mailing. to both
the owner of the advertising device and the owner of the real property where the device is
located. The department must store a removed outdoor advertising device for a minimum
of 30 days prior to disposal. If the outdoor advertising device is not retrieved by the owner
within 30 days of removal, the department may dispose of the outdoor advertising device.
The state is not liable for trespass actions or sign costs for outdoor advertising devices
removed under this subdivision if proper notice has been served.

Sec. 89.

[173.155] CHANGEABLE ELECTRONIC VARIABLE MESSAGE SIGNS.

Subdivision 1.

Definition.

For the purposes of this section, "changeable electronic
variable message sign" or "CEVMS" means an outdoor advertising device that contains
light-emitting diodes or other technology to display copy visible during the day and during
the night, with the copy changes initiated electronically.

Subd. 2.

Prohibition.

Intermittent, animated, scrolling, full-motion video elements, or
moving lights are prohibited on outdoor advertising devices, including CEVMS.

Subd. 3.

Exceptions.

(a) Notwithstanding subdivision 2, a CEVMS is permissible if:

(1) the message does not change more frequently than once every six seconds;

(2) the transition between messages or copy does not exceed two seconds in duration;

(3) the message brightness does not exceed 0.3 foot-candles over ambient light, as
measured using a foot candle meter from the following distances:

(i) for signs with a nominal face size of 12 feet by 25 feet, from 150 feet;

(ii) for signs with a nominal face size of ten feet, six inches, by 36 feet, from 200 feet;
and

(iii) for signs with a nominal face size of 14 feet by 48 feet, from 250 feet; and

(4) the sign must not cause beams or rays of light to be directed at the traveled way if
the light is of such intensity or brilliance as to cause glare that impairs the vision of the
driver of a motor vehicle, or interfere with any driver's operation of a motor vehicle.

(b) The brightness measurement under paragraph (a), clause (3), must be conducted at
least 30 minutes after sunset or at least 30 minutes before sunrise. Each CEVMS must have
automatic dimming technology that adjusts the device's brightness levels in response to
changes in ambient light.

Sec. 90.

Minnesota Statutes 2016, section 173.16, is amended by adding a subdivision to
read:


Subd. 6.

Stationary structure.

Advertising devices must:

(1) be stationary;

(2) be immobile;

(3) not have wheels; and

(4) be incapable of relocation without a permit.

Sec. 91.

Minnesota Statutes 2016, section 173.16, is amended by adding a subdivision to
read:


Subd. 7.

Permanent business.

(a) A business that is located in an unzoned commercial
or industrial area must be in existence for at least three months before a permit may be
issued. An outdoor advertising device erected prior to receiving a permit is subject to
removal.

(b) A commercial establishment may demonstrate evidence of its existence by having
a Web site, a telephone number that is answered or has an answering machine identifying
the business, a storefront, pictorial evidence of the business, a building permit, or a lease.

Sec. 92.

[173.265] OUTDOOR ADVERTISING DEVICES; REMOVAL;
MAINTENANCE.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them.

(b) "Destroyed" means that more than 50 percent of a nonconforming outdoor advertising
device's upright supports are physically damaged to a degree that normal repair practices
would require replacement of broken wooden supports or replacement of broken, bent, or
twisted supports for metal sign structures.

(c) "Reasonable repair and maintenance" means customary maintenance and change of
a sign's copy or message, and includes replacement of existing light fixtures with energy
efficient fixtures or installation of other energy efficiency improvements. Reasonable repair
and maintenance does not include:

(1) the addition of illumination;

(2) repair, reinstallation, erection, or maintenance for outdoor advertising devices that
are destroyed, as defined under paragraph (b);

(3) enlarging the nonconforming device;

(4) changing the device from a wood structure to a steel or concrete structure; or

(5) any change that would terminate nonconforming status.

(d) "Substantial change" means any action that does not constitute reasonable repair and
maintenance.

Subd. 2.

Application.

This section applies only to outdoor advertising devices subject
to state and federal regulation under United States Code, title 23, section 131, and any
regulations adopted under that law.

Subd. 3.

Removal.

The department may remove a destroyed, abandoned, or discontinued
outdoor advertising device, subject to the limitations provided under this chapter.

Subd. 4.

Reasonable repair and maintenance.

(a) The owner of an outdoor advertising
device may perform reasonable repair and maintenance on any device, provided the device
is not destroyed.

(b) Any action not constituting reasonable repair and maintenance will subject the outdoor
advertising device to immediate removal under subdivision 3.

Subd. 5.

Substantial change.

Substantial changes to outdoor advertising devices are
prohibited. A substantial change to a nonconforming outdoor advertising device will subject
the sign to immediate removal under subdivision 3.

Sec. 93.

Minnesota Statutes 2016, section 174.03, subdivision 1a, is amended to read:


Subd. 1a.

Revision of statewide multimodal transportation plan.

(a) The commissioner
shall must revise the statewide multimodal transportation plan by January 15, 2013 2022,
and by January 15 of every four five years thereafter. Before final adoption of a revised
plan, the commissioner shall must hold a hearing to receive public comment on the
preliminary draft of the revised plan.

(b) Each revised statewide multimodal transportation plan must:

(1) incorporate the goals of the state transportation system in section 174.01;

(2) establish objectives, policies, and strategies for achieving those goals; and

(3) identify performance targets for measuring progress and achievement of transportation
system goals, objectives, or policies.

Sec. 94.

Minnesota Statutes 2016, section 174.03, subdivision 1c, is amended to read:


Subd. 1c.

Statewide highway 20-year capital investment plan.

By January 15, 2013,
and in conjunction with
Within one year of each future revision of the statewide multimodal
transportation plan under subdivision 1a, the commissioner shall must prepare a 20-year
statewide highway capital investment plan that:

(1) incorporates performance measures and targets for assessing progress and achievement
of the state's transportation goals, objectives, and policies identified in this chapter for the
state trunk highway system, and those goals, objectives, and policies established in the
statewide multimodal transportation plan. Performance targets must be based on objectively
verifiable measures, and address, at a minimum, preservation and maintenance of the
structural condition of state highway bridges and pavements, safety, and mobility;

(2) summarizes trends and impacts for each performance target over the past five years;

(3) summarizes the amount and analyzes the impact of the department's capital
investments and priorities over the past five years on each performance target, including a
comparison of prior plan projected costs with actual costs;

(4) identifies the investments required to meet the established performance targets over
the next 20-year period;

(5) projects available state and federal funding over the 20-year period, including any
unique, competitive, time-limited, or focused funding opportunities;

(6) identifies strategies to ensure the most efficient use of existing transportation
infrastructure, and to maximize the performance benefits of projected available funding;

(7) establishes investment priorities for projected funding, including a schedule of major
projects or improvement programs for the 20-year period together with projected costs and
impact on performance targets; and

(8) identifies those performance targets identified under clause (1) not expected to meet
the target outcome over the 20-year period together with alternative strategies that could
be implemented to meet the targets.

Sec. 95.

[174.38] ACTIVE TRANSPORTATION PROGRAM.

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given them.

(b) "Active transportation" means bicycling, pedestrian activities, and other forms of
nonmotorized transportation.

(c) "Commissioner" means the commissioner of transportation.

Subd. 2.

Program established.

Subject to available funds, the commissioner must
establish a program to support active transportation.

Subd. 3.

Active transportation account.

An active transportation account is established
in the special revenue fund. The account consists of funds provided by law and any other
money donated, allotted, transferred, or otherwise provided to the account. Money in the
account must be expended only on a project that receives financial assistance under this
section.

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 annually conduct a solicitation 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.

Subd. 5.

Eligibility.

Eligible recipients of financial assistance under this section are:

(1) a political subdivision; and

(2) a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code, as
amended.

Subd. 6.

Use of funds.

The commissioner must determine permissible uses of financial
assistance under this section, which are limited to:

(1) construction and maintenance of bicycle, trail, and pedestrian infrastructure, including
but not limited to safe routes to school infrastructure and bicycle facilities and centers; and

(2) noninfrastructure programming, including activities as specified in section 174.40,
subdivision 7a, paragraph (b).

Subd. 7.

Project evaluation and selection.

(a) The commissioner must establish a
project evaluation and selection process that is competitive, criteria-based, and objective.

(b) The process must include criteria and prioritization of projects based on:

(1) the project's inclusion in a municipal or regional nonmotorized transportation system
plan;

(2) the extent to which policies or practices of the political subdivision encourage and
promote complete streets planning, design, and construction;

(3) the extent to which the project supports connections between communities and to
key destinations within a community;

(4) identified barriers or deficiencies in the nonmotorized transportation system;

(5) identified safety or health benefits;

(6) geographic equity in project benefits, with an emphasis on communities that are
historically and currently underrepresented in local or regional planning; and

(7) ability of a grantee to maintain the active transportation infrastructure following
project completion.

Sec. 96.

Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:


Subd. 5.

Certification and disbursal for project of political subdivision.

Before
disbursement of an appropriation made from the fund to the commissioner of transportation
for grants to subdivisions of the state, the commissioner shall must certify that:

(1) that the project for which the grant is made has been reviewed as provided in
subdivision 4;

(2) that the project conforms to the program authorized by the appropriation law and
rules adopted by the Department of Transportation consistent therewith; and

(3) that (2) the financing of any estimated cost of the project in excess of the amount of
the grant is assured by the appropriation of the proceeds of bonds or other funds of the
subdivision, or by a grant from an agency of the federal government, within the amount of
funds then appropriated to that agency and allocated by it to projects within the state, and
by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to
use all funds so made available exclusively for the project, and to pay any additional amount
by which the cost exceeds the estimate through appropriation to the construction fund of
additional funds or the proceeds of additional bonds to be issued by the subdivision.

Sec. 97.

Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:


Subd. 6b.

Bridge costs in smaller cities.

(a) The commissioner may make grants from
the state transportation fund to a home rule or statutory city with a population of 5,000 or
less for design, engineering, and construction of bridges on city streets.

(b) Grants under this subdivision are subject to the procedures and criteria established
under subdivisions 5, 6, and 7.

(c) (b) Grants may be used for:

(1) 100 percent of the design and engineering costs that are in excess of $10,000;

(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and

(3) 100 percent of the bridge construction work costs.

Sec. 98.

Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:


Subd. 6c.

Fracture-critical bridges.

(a) The commissioner may make a grant to any
political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be
eligible for a grant under this subdivision, the project must produce a bridge structure:

(1) that is no longer classified as fracture critical, by having alternate load paths; and

(2) whose failure of a main component will not result in the collapse of the bridge.

(b) A grant under this subdivision is subject to the procedures and criteria established
under subdivisions 5 and 6.

Sec. 99.

Minnesota Statutes 2016, section 174.50, is amended by adding a subdivision to
read:


Subd. 6d.

Major local bridges.

For an appropriation made specifically for purposes of
this subdivision, the commissioner may make a grant under this section to any political
subdivision for replacement or rehabilitation of a major local bridge in which the grant
award is $7,000,000 or more. If in any year money appropriated for local bridge replacement
and rehabilitation projects under this subdivision remains available after all identified and
eligible projects under this subdivision have been funded, the commissioner may use the
remaining funds to make grants under this section for less than $7,000,000.

Sec. 100.

Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:


Subd. 7.

Bridge grant program; rulemaking.

(a) The commissioner of transportation
shall develop rules, procedures for application for grants, conditions of grant administration,
standards, and criteria as provided under subdivision 6, including bridge specifications, in
cooperation with road authorities of political subdivisions, for use in the administration of
funds appropriated to the commissioner and for the administration of grants to subdivisions.
Grants under this section are subject to the procedures and criteria established in this
subdivision and in subdivisions 5 and 6.

(b) The maximum use of standardized bridges is encouraged. Regardless of the size of
the existing bridge, a bridge or replacement bridge is eligible for assistance from the state
transportation fund if a hydrological survey indicates that the bridge or replacement bridge
must be ten feet or more in length.

(c) As part of the standards or rules, the commissioner shall, in consultation with local
road authorities, establish a minimum distance between any two bridges that cross over the
same river, stream, or waterway, so that only one of the bridges is eligible for a grant under
this section. As appropriate, the commissioner may establish exceptions from the minimum
distance requirement or procedures for obtaining a variance.

(d) Political subdivisions may use grants made under this section to construct or
reconstruct bridges, including but not limited to:

(1) matching federal aid grants to construct or reconstruct key bridges;

(2) paying the costs to abandon an existing bridge that is deficient and in need of
replacement but where no replacement will be made; and

(3) paying the costs to construct a road or street to facilitate the abandonment of an
existing bridge if the commissioner determines that the bridge is deficient, and that
construction of the road or street is more economical than replacement of the existing bridge.

(e) Funds appropriated to the commissioner from the Minnesota state transportation
fund shall be segregated from the highway tax user distribution fund and other funds created
by article XIV of the Minnesota Constitution.

(f) Except as provided under subdivision 6d, the commissioner is prohibited from
awarding a grant under this section for a local bridge replacement or rehabilitation project
with a total project cost estimate of $7,000,000 or more.

(g) Notwithstanding paragraph (f), the commissioner may award a grant under this
section for a portion of a local bridge replacement or rehabilitation project with a total
project cost estimate of $7,000,000 or more if every other local bridge replacement or
rehabilitation project on the commissioner's priority list with a total project cost estimate
of less than $7,000,000 has been fully funded.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 101.

[174.53] DEPARTMENT OF TRANSPORTATION EFFICIENCIES.

(a) Beginning in fiscal years 2018 and 2019, the commissioner of transportation must
implement efficiencies equal to at least 15 percent of the appropriations made annually to
the commissioner from the trunk highway fund that are above base appropriations for fiscal
years 2018 and 2019.

(b) The efficiency savings resulting from the requirements in paragraph (a) are for the
construction, maintenance, or rehabilitation of trunk highways, including roads and bridges.

Sec. 102.

Minnesota Statutes 2016, section 174.56, is amended by adding a subdivision
to read:


Subd. 4.

Availability of information.

The commissioner must maintain an Internet Web
site that displays information for each major highway project. At a minimum, the information
must include the report contents identified in subdivision 2.

Sec. 103.

[174.57] SNOW AND ICE CONTROL; APPROPRIATION.

(a) In a fiscal year in which the commissioner expends more than 110 percent of the
established biennial expenditure level for snow and ice management, the commissioner may
use an additional amount for this purpose that does not exceed 50 percent of the
unappropriated balance in the trunk highway fund. The amount identified by the
commissioner under this paragraph is appropriated from the trunk highway fund to the
commissioner for snow and ice management purposes.

(b) Upon using the appropriation authority in this section, the commissioner must notify
the commissioner of management and budget and the chairs, ranking minority members,
and staff of the house of representatives and senate committees having jurisdiction over
transportation finance. The notification must at a minimum identify the established biennial
expenditure level for snow and ice management and the amount appropriated under this
section.

(c) In each budget submission to the legislature under section 16A.11, the commissioner
must include:

(1) the proposed biennial expenditure level for snow and ice management for the next
budget biennium; and

(2) the total amount expended or estimated to be expended under the appropriation in
this section for the budget biennium that is ending.

Sec. 104.

Minnesota Statutes 2016, section 174.93, is amended to read:


174.93 GUIDEWAY METROPOLITAN AREA TRANSIT INVESTMENT.

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given: .

(1) (b) "Busway" means a form of bus service provided to the public on a regular and
ongoing basis, including arterial or highway bus rapid transit, that (1) compared to other
regular route bus service, provides reduced travel time and uses distinct bus stop or station
amenities, and (2) does not primarily or substantially operate within separated rights-of-way;

(c) "Commissioner" means the commissioner of transportation; .

(2) (d) "Guideway" means a form of transportation service provided to the public on a
regular and ongoing basis, that primarily or substantially operates on exclusive or controlled
within separated
rights-of-way or operates on rails in whole or in part, and includes:

(1) each line for intercity passenger rail, commuter rail, light rail transit, and streetcars,
and
;

(2) as applicable, each line for dedicated bus service, which may include arterial or
highway
bus rapid transit; and , limited stop bus service, and express bus service; and

(3) any intermodal facility serving two or more lines identified in clauses (1) and (2).
Guideway does not include a busway.

(3) (e) "Local unit of government" means a county, statutory or home rule charter city,
town, or other political subdivision including, but not limited to, a regional railroad authority
or joint powers board.

(f) "Separated rights-of-way" includes exclusive, dedicated, or primary use of a
right-of-way by the public transportation service. Separated rights-of-way does not include
a shoulder, dynamic shoulder lane, or priced lane under section 160.93.

(b) For purposes of this section, (g) "Sources of funds" includes, but is not limited to,
money from federal aid, state appropriations, the Metropolitan Council, special taxing
districts, local units of government, fare box recovery, and nonpublic sources.

(c) For purposes of this section, (h) "Budget activity" includes, but is not limited to,
environmental analysis, land acquisition, easements, design, preliminary and final
engineering, acquisition of vehicles and rolling stock, track improvement and rehabilitation,
and construction.

Subd. 1a.

Guideway capital project requests to legislature.

A state agency or local
unit of government that submits a request to the legislature to obtain state funds for a
guideway project shall, as part of the request, provide a summary financial plan for the
project that presents the following information as reflected by the data and level of detail
available in the latest phase of project development:

(1) capital expenditures and funding sources for the project, including expenditures to
date and total projected or estimated expenditures, with a breakdown by committed and
proposed sources of funds; and

(2) estimated annual operations and maintenance expenditures for the project, with a
breakdown by committed and proposed sources of funds.

Subd. 2.

Legislative report.

(a) By January October 15, 2012, and by November 15 in
every odd-numbered even-numbered year thereafter, the commissioner shall council must
prepare, in collaboration with the Metropolitan Council commissioner, and a report on
comprehensive transit finance in the metropolitan area. The council must
submit a the report
electronically to the chairs and ranking minority members of the legislative committees
with jurisdiction over transportation policy and finance concerning .

(b) The report must be structured to provide financial information in six-month increments
corresponding to state and local fiscal years, and must use consistent assumptions and
methodologies. The report must comprehensively identify all funding sources and
expenditures related to transit in the metropolitan area, including but not limited to:

(1) sources and uses of funds from regional railroad authorities, joint powers agreements,
counties, and cities;

(2) expenditures for transit planning, feasibility studies, alternatives analysis, and other
transit project development; and

(3) expenditures for guideways, busways, regular route bus service, demand-response
service, and special transportation service under section 473.386.

(c) The report must include a section that summarizes the status of (1) guideways in
revenue operation, and (2)
guideway projects (1) (i) currently in study, planning,
development, or construction; (2) (ii) identified in the transportation policy plan under
section 473.146; or (3) (iii) identified in the comprehensive statewide freight and passenger
rail plan under section 174.03, subdivision 1b.

(b) (d) At a minimum, the guideways status section of the report must include, provide
for each guideway project wholly or partially in the metropolitan area:

(1) a brief description of the project, including projected ridership;

(2) a summary of the overall status and current phase of the project;

(3) a timeline that includes (i) project phases or milestones, including any federal
approvals
; (ii) expected and known dates of commencement of each phase or milestone;
and (iii) expected and known dates of completion of each phase or milestone;

(4) a brief progress update on specific project phases or milestones completed since the
last previous submission of a report under this subdivision; and

(5) a summary financial plan that identifies, as reflected by the data and level of detail
available in the latest phase of project development and to the extent available:

(i) capital expenditures, including expenditures to date and total projected expenditures,
with a breakdown by committed and proposed sources of funds for the project;

(ii) estimated annual operations and maintenance expenditures reflecting the level of
detail available in the current phase of the project development, with a breakdown by
committed and proposed sources of funds for the project; and

(iii) if feasible, project expenditures by budget activity.

(e) The report must include a section that summarizes the status of (1) busways in revenue
operation, and (2) busway projects currently in study, planning, development, or construction.

(f) The report must include a section that identifies the total ridership, farebox recovery
ratio, and per-passenger operating subsidy for (1) each route and line in revenue operation
by a transit provider, including guideways, busways, and regular route bus service; and (2)
demand-response service and special transportation service. The section must provide data,
as available on a per-passenger mile basis and must provide information for at least the
previous three years. The section must identify performance standards for farebox recovery
and identify each route and line that does not meet the standards.

(c) (g) The report must also include a systemwide capacity analysis for transit operations
and
investment in guideway expansion and maintenance that:

(1) provides a funding projection, annually over the ensuing ten years, and with a
breakdown by committed and proposed sources of funds, of:

(i) total capital expenditures for guideways and for busways;

(ii) total operations and maintenance expenditures for guideways and for busways;

(iii) total funding available for guideways and for busways, including from projected or
estimated farebox recovery; and

(iv) total funding available for transit service in the metropolitan area; and

(2) evaluates the availability of funds and distribution of sources of funds for guideway
and for busway
investments.

(d) (h) The projection capacity analysis under paragraph (c), clause (1), (g) must be for
include all guideway and busway lines for which state public funds are reasonably expected
to be expended in planning, development, construction, or revenue operation, or capital
maintenance
during the ensuing ten years.

(e) (i) Local units of government shall must provide assistance and information in a
timely manner as requested by the commissioner or council for completion of the report.

EFFECTIVE DATE; APPLICATION.

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

Sec. 105.

Minnesota Statutes 2016, section 221.031, is amended by adding a subdivision
to read:


Subd. 2e.

Exemptions for pipeline welding trucks.

A pipeline welding truck, as defined
in Code of Federal Regulations, title 49, section 390.38, paragraph (b), including an individual
operating a pipeline welding truck and the employer of the individual, is exempt from any
requirement relating to:

(1) registration as a motor carrier, including the requirement to obtain and display a
United States Department of Transportation number under subdivision 6 and section 168.185;

(2) driver qualifications under section 221.0314, subdivision 2;

(3) driving of commercial motor vehicles under section 221.0314, subdivision 6;

(4) parts, accessories, and inspection, repair, and maintenance of commercial motor
vehicles under section 221.0314, subdivisions 7 and 10; and

(5) hours of service of drivers, including maximum driving and on-duty time under
section 221.0314, subdivision 9.

Sec. 106.

Minnesota Statutes 2016, section 222.49, is amended to read:


222.49 RAIL SERVICE IMPROVEMENT ACCOUNT; APPROPRIATION.

The rail service improvement account is created in the special revenue fund in the state
treasury. The commissioner shall deposit in this account all consists of funds as provided
by law, and any other
money appropriated to or received by the department for the purpose
of rail service improvement
donated, allotted, transferred, or otherwise provided to the
account
, excluding bond proceeds as authorized by article XI, section 5, clause (i), of the
Minnesota Constitution. All money so deposited is appropriated to the department for
expenditure for rail service improvement in accordance with applicable state and federal
law. This appropriation shall not lapse but shall be available until the purpose for which it
was appropriated has been accomplished. No money appropriated to the department for the
purposes of administering the rail service improvement program shall be deposited in the
rail service improvement account nor shall such administrative costs be paid from the
account.

Sec. 107.

Minnesota Statutes 2016, section 222.50, subdivision 6, is amended to read:


Subd. 6.

Grants.

The commissioner may approve grants from the rail service
improvement account for payment of up to 50 percent of the nonfederal share of the cost
of any rail line project under the federal rail service continuation program
freight rail service
improvements that support economic development
.

Sec. 108.

Minnesota Statutes 2016, section 256B.15, subdivision 1a, as amended by Laws
2017, chapter 46, section 2, and Laws 2017, chapter 59, section 11, is amended to read:


Subd. 1a.

Estates subject to claims.

(a) If a person receives medical assistance hereunder,
on the person's death, if single, or on the death of the survivor of a married couple, either
or both of whom received medical assistance, or as otherwise provided for in this section,
the amount paid for medical assistance as limited under subdivision 2 for the person and
spouse shall be filed as a claim against the estate of the person or the estate of the surviving
spouse in the court having jurisdiction to probate the estate or to issue a decree of descent
according to sections 525.31 to 525.313.

(b) For the purposes of this section, the person's estate must consist of:

(1) the person's probate estate;

(2) all of the person's interests or proceeds of those interests in real property the person
owned as a life tenant or as a joint tenant with a right of survivorship at the time of the
person's death;

(3) all of the person's interests or proceeds of those interests in securities the person
owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time
of the person's death, to the extent the interests or proceeds of those interests become part
of the probate estate under section 524.6-307;

(4) all of the person's interests in joint accounts, multiple-party accounts, and pay-on-death
accounts, brokerage accounts, investment accounts, or the proceeds of those accounts, as
provided under sections 524.6-201 to 524.6-214 at the time of the person's death to the
extent the interests become part of the probate estate under section 524.6-207; and

(5) assets conveyed to a survivor, heir, or assign of the person through survivorship,
living trust, transfer-on-death of title or deed, or other arrangements.

(c) For the purpose of this section and recovery in a surviving spouse's estate for medical
assistance paid for a predeceased spouse, the estate must consist of all of the legal title and
interests the deceased individual's predeceased spouse had in jointly owned or marital
property at the time of the spouse's death, as defined in subdivision 2b, and the proceeds of
those interests, that passed to the deceased individual or another individual, a survivor, an
heir, or an assign of the predeceased spouse through a joint tenancy, tenancy in common,
survivorship, life estate, living trust, or other arrangement. A deceased recipient who, at
death, owned the property jointly with the surviving spouse shall have an interest in the
entire property.

(d) For the purpose of recovery in a single person's estate or the estate of a survivor of
a married couple, "other arrangement" includes any other means by which title to all or any
part of the jointly owned or marital property or interest passed from the predeceased spouse
to another including, but not limited to, transfers between spouses which are permitted,
prohibited, or penalized for purposes of medical assistance.

(e) A claim shall be filed if medical assistance was rendered for either or both persons
under one of the following circumstances:

(1) the person resided in a medical institution for six months or longer, received services
under this chapter, and, at the time of institutionalization or application for medical assistance,
whichever is later, the person could not have reasonably been expected to be discharged
and returned home, as certified in writing by the person's treating physician, advanced
practice registered nurse, or physician assistant. For purposes of this section only, a "medical
institution" means a skilled nursing facility, intermediate care facility, intermediate care
facility for persons with developmental disabilities, nursing facility, or inpatient hospital;

(2) the person received general assistance medical care services under the program
formerly codified under chapter 256D; or

(3) the person was 55 years of age or older and received medical assistance services that
consisted of nursing facility services, home and community-based services, or related
hospital and prescription drug benefits.

(f) The claim shall be considered an expense of the last illness of the decedent for the
purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a state or
county agency with a claim under this section must be a creditor under section 524.6-307.
Any statute of limitations that purports to limit any county agency or the state agency, or
both, to recover for medical assistance granted hereunder shall not apply to any claim made
hereunder for reimbursement for any medical assistance granted hereunder. Notice of the
claim shall be given to all heirs and devisees of the decedent, and to other persons with an
ownership interest in the real property owned by the decedent at the time of the decedent's
death, whose identity can be ascertained with reasonable diligence. The notice must include
procedures and instructions for making an application for a hardship waiver under subdivision
5; time frames for submitting an application and determination; and information regarding
appeal rights and procedures. Counties are entitled to one-half of the nonfederal share of
medical assistance collections from estates that are directly attributable to county effort.
Counties are entitled to ten percent of the collections for alternative care directly attributable
to county effort.

Sec. 109.

Minnesota Statutes 2016, section 297A.815, subdivision 3, is amended to read:


Subd. 3.

Motor vehicle lease sales tax revenue.

(a) For purposes of this subdivision,
"net revenue" means an amount equal to the revenues, including interest and penalties,
collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.

(b) (a) On or before June 30 of each fiscal year, the commissioner of revenue shall must
estimate the amount of the net revenue revenues, including interest and penalties and minus
refunds, collected under this section
for the current fiscal year.

(c) On or after (b) By July 1 15 of the subsequent fiscal year, the commissioner of
management and budget shall must transfer the net revenue as revenues estimated in under
paragraph (b) (a) from the general fund, as follows:

(1) 38 percent to the county state-aid highway fund;

(2) 38 percent to the greater Minnesota transit account;

(3) 13 percent to the Minnesota state transportation fund; and

(4) 11 percent to the highway user tax distribution fund.

(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to the
county state-aid highway fund.
(c) Notwithstanding any other law to the contrary, the
commissioner of transportation shall must allocate the funds transferred under this paragraph
(b),
clause (1), to the counties in the metropolitan area, as defined in section 473.121,
subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall
receive of such amount
receives the percentage that its population, as defined in section
477A.011, subdivision 3, estimated or established by July 15 of the year prior to the current
calendar year, bears to the total population of the counties receiving funds under this clause;
and
paragraph.

(2) the remainder to the greater Minnesota transit account. (d) The amount transferred
under paragraph (b), clause (3), must be used for the local bridge program under section
174.50, subdivisions 6 to 7.

(e) The revenues under this subdivision do not include the revenues, including interest
and penalties and minus refunds, generated by the sales tax imposed under section 297A.62,
subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

EFFECTIVE DATE.

This section is effective the day following final enactment,
beginning with the estimate that must be completed on or before June 30, 2018, for a transfer
that occurs by July 15, 2018.

Sec. 110.

Minnesota Statutes 2016, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5
, for the previous calendar year.

(e) (f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the
deposit of revenues under paragraph (d), the commissioner shall deposit into the state
treasury and credit to the highway user tax distribution fund an amount equal to the estimated
revenues derived from the tax rate imposed under section 297A.62, subdivision 1, on the
lease or rental for not more than 28 days of rental motor vehicles subject to section 297A.64.
The commissioner shall estimate the amount of sales tax revenue deposited under this
paragraph based on the amount of revenue deposited under paragraph (d).

(g) Starting after July 1, 2017, the commissioner shall deposit an amount of the
remittances monthly into the state treasury and credit them to the highway user tax
distribution fund as a portion of the estimated amount of taxes collected from the sale and
purchase of motor vehicle repair parts in that month. For the remittances between July 1,
2017, and June 30, 2019, the monthly deposit amount is $2,628,000. For remittances in
each subsequent fiscal year, the monthly deposit amount is $12,137,000. For purposes of
this paragraph, "motor vehicle" has the meaning given in section 297B.01, subdivision 11,
and "motor vehicle repair and replacement parts" includes (i) all parts, tires, accessories,
and equipment incorporated into or affixed to the motor vehicle as part of the motor vehicle
maintenance and repair, and (ii) paint, oil, and other fluids that remain on or in the motor
vehicle as part of the motor vehicle maintenance or repair. For purposes of this paragraph,
"tire" means any tire of the type used on highway vehicles, if wholly or partially made of
rubber and if marked according to federal regulations for highway use.

(h) 72.43 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
the game and fish fund, and may be spent only on activities that improve, enhance, or protect
fish and wildlife resources, including conservation, restoration, and enhancement of land,
water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo.

(f) (i) The revenue dedicated under paragraph (e) (h) may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph (e) (h) must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph (e) (h) must be allocated for field operations.

(g) (j) The revenues deposited under paragraphs (a) to (f) (i) do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a
, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.

EFFECTIVE DATE.

This section is effective July 1, 2017.

Sec. 111.

Minnesota Statutes 2016, section 297A.992, is amended by adding a subdivision
to read:


Subd. 10a.

Termination of taxes; use of remaining funds.

If the joint powers agreement
under subdivision 3 is terminated, funds received by a county in association with the
termination may be used for any of the purposes specified in section 297A.993, subdivision
2.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 112.

Minnesota Statutes 2016, section 297B.01, subdivision 16, is amended to read:


Subd. 16.

Sale, sells, selling, purchase, purchased, or acquired.

(a) "Sale," "sells,"
"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor
vehicle, whether absolutely or conditionally, for a consideration in money or by exchange
or barter for any purpose other than resale in the regular course of business.

(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or
by holding it in an effort to so lease it, and which is put to no other use by the owner other
than resale after such lease or effort to lease, shall be considered property purchased for
resale.

(c) The terms also shall include any transfer of title or ownership of a motor vehicle by
other means, for or without consideration, except that these terms shall not include:

(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or
transfer-on-death of title by
, a decedent who owned it;

(2) the transfer of a motor vehicle which was previously licensed in the names of two
or more joint tenants and subsequently transferred without monetary consideration to one
or more of the joint tenants;

(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer
licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with
no monetary or other consideration or expectation of consideration and the parties to the
transfer submit an affidavit to that effect at the time the title transfer is recorded;

(4) the transfer of a motor vehicle by gift between:

(i) spouses;

(ii) parents and a child; or

(iii) grandparents and a grandchild;

(5) the voluntary or involuntary transfer of a motor vehicle between a husband and wife
in a divorce proceeding; or

(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from
federal income taxation under section 501(c)(3) of the Internal Revenue Code when the
motor vehicle will be used exclusively for religious, charitable, or educational purposes.

Sec. 113.

Minnesota Statutes 2016, section 299D.03, subdivision 6, is amended to read:


Subd. 6.

Training program.

The commissioner of public safety may provide training
programs for the purpose of obtaining qualified personnel for the State Patrol. Persons
accepted by the commissioner of public safety for training under this training program shall
be designated State Patrol trainees and shall receive a salary not to exceed no less than 70
percent of the basic salary for patrol officers as prescribed in subdivision 2, during the period
of the training. Nothing contained in this subdivision shall be construed to prevent the
commissioner of public safety from providing in-service training programs for State Patrol
officers. The commissioner of transportation shall furnish the commissioner of public safety
with lands and buildings necessary in providing in-service training programs and the
Department of Public Safety shall reimburse the Department of Transportation for all
reasonable costs incurred due to the provision of these training facilities.

Sec. 114.

Minnesota Statutes 2016, section 398A.10, subdivision 3, is amended to read:


Subd. 3.

Application.

This section only applies to a county that has imposed the
metropolitan transportation sales and use tax under section 297A.992 and applies whether
or not the tax is currently in effect
.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 115.

Minnesota Statutes 2016, section 398A.10, subdivision 4, is amended to read:


Subd. 4.

Definition.

For purposes of this section, "project" means the initial construction
or extension of a minimum operable segment of a new light rail transit or commuter rail
line, but does not include infill stations, project enhancements, extensions, or supportive
infrastructure, constructed after the rail transit is operational.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 116.

Minnesota Statutes 2016, section 473.121, subdivision 2, is amended to read:


Subd. 2.

Metropolitan area or area.

"Metropolitan area" or "area" means the area over
which the Metropolitan Council has jurisdiction, including only the counties of Anoka;
Carver; Dakota excluding the city cities of Northfield and Cannon Falls; Hennepin excluding
the cities of Hanover and Rockford; Ramsey; Scott excluding the city of New Prague; and
Washington.

EFFECTIVE DATE; APPLICATION.

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

Sec. 117.

Minnesota Statutes 2016, section 473.388, subdivision 4, is amended to read:


Subd. 4.

Financial assistance; base allocation.

(a) The council must grant the requested
financial assistance if it determines that (1) the proposed service is intended to replace of
the statutory or home rule charter city, town, or combination, replaces
the council's service
to the applying statutory or home rule charter city, or town, or combination thereof by the
council
, and that (2) the proposed service will meet meets the needs of the applicant recipient
at least as efficiently and effectively as the existing council's service.

(b) The amount of assistance which the council must provide to a system under this
section may must not be less than the sum of (1) the amounts determined for each
municipality comprising the system as follows:
calculated under paragraph (c), and (2) the
amount calculated under subdivision 4a.

(c) The financial assistance base allocation for each replacement service municipality
is calculated as:

(1) an amount equal to 3.74 percent of the total state revenues generated from the taxes
imposed under chapter 297B for the current fiscal year; times

(2) the ratio of:

(i) the transit operating assistance grants received under this subdivision by the
municipality in calendar year 2001 or the tax revenues for transit services levied by the
municipality for taxes payable in 2001, including that portion of the levy derived from the
areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the
municipality's aid under Minnesota Statutes 2002, section 273.1398, subdivision 2,
attributable to the transit levy; times

(2) the ratio of (i) an amount equal to 3.74 percent of the state revenues generated from
the taxes imposed under chapter 297B for the current fiscal year
to (ii) the total transit
operating assistance grants received under this subdivision in calendar year 2001 or the tax
revenues for transit services levied by all replacement service municipalities under this
section for taxes payable in 2001, including that portion of the levy derived from the areawide
pool under section 473F.08, subdivision 3, clause (a), plus the portion of homestead and
agricultural credit aid under Minnesota Statutes 2002, section 273.1398, subdivision 2,
attributable to nondebt transit levies; times

(3) the ratio of:

(i) the municipality's total taxable market value for taxes payable in 2006 divided by the
municipality's total taxable market value for taxes payable in 2001, ; to

(ii) the total taxable market value of all property located in replacement service
municipalities for taxes payable in 2006 divided by the total taxable market value of all
property located in replacement service municipalities for taxes payable in 2001.

(c) (d) The council shall must pay the amount to be provided to the recipient under this
subdivision
from the funds the council receives in the metropolitan area transit account
under section 16A.88.

EFFECTIVE DATE; APPLICATION.

This section is effective the day following
final enactment and applies for financial assistance provided on or after January 1, 2018.
This section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,
and Washington.

Sec. 118.

Minnesota Statutes 2016, section 473.388, is amended by adding a subdivision
to read:


Subd. 4a.

Financial assistance; regional allocation.

(a) In addition to the assistance
under subdivision 4, paragraph (c), for fiscal years 2018 and 2019 the council must annually
provide financial assistance through regional allocation to replacement service municipalities.
The amount of financial assistance under this paragraph must equal at least 0.35 percent of
the total state revenues generated from the taxes imposed under chapter 297B for the current
fiscal year.

(b) The council must establish a process to regionally allocate financial assistance under
this subdivision. At a minimum, the council must:

(1) adopt and implement a regional allocation policy that specifies funding priorities,
identifies decision-making procedures, and establishes criteria to determine the amount
allocated to a replacement service municipality; and

(2) ensure transparency and stakeholder input, which must include publishing on the
council's Web site the policy adopted under clause (1), a summary of the regional allocation
process, and financial information on the allocations.

(c) The regional allocation policy may specify eligibility requirements based on a
replacement service municipality's transit service operating reserves.

(d) The council must provide financial assistance under this subdivision using funds
appropriated to the council from the metropolitan area transit account in the transit assistance
fund.

EFFECTIVE DATE; APPLICATION.

This section is effective the day following
final enactment and applies for financial assistance provided on or after January 1, 2018.
This section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott,
and Washington.

Sec. 119.

Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision
to read:


Subd. 6.

Limitation on certain debt obligations.

The council is prohibited from issuing
certificates of participation for light rail transit secured in whole or in part by (1) a pledge
of motor vehicle sales tax revenue received under sections 16A.88 and 297B.09, or (2) a
pledge of any earnings from the council's investment of motor vehicle sales tax revenues.

EFFECTIVE DATE; APPLICATION.

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

Sec. 120.

Minnesota Statutes 2016, section 473.4051, subdivision 2, is amended to read:


Subd. 2.

Operating costs.

(a) After operating revenue and federal money have been
used to pay for light rail transit operations, 50 percent of the remaining operating costs must
be paid by the state.

(b) Notwithstanding paragraph (a), all operating and ongoing capital maintenance costs
must be paid from nonstate sources for a segment of a light rail transit line or line extension
project that formally entered the engineering phase of the Federal Transit Administration's
"New Starts" capital investment grant program between August 1, 2016, and December 31,
2016.

EFFECTIVE DATE; APPLICATION.

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

Sec. 121.

[473.4052] RIGHT-OF-WAY USE; CONTRACTS; LIABILITY.

Subdivision 1.

Contracts for joint or shared use.

(a) The location of light rail transit
in a shared corridor that is within or adjacent to right-of-way used for freight rail purposes
is a public purpose.

(b) The council, a metropolitan county, or a public entity contracting with the council
or county may contract with a railroad for (1) the use of right-of-way for light rail transit
and freight rail purposes, or (2) the construction, operation, or maintenance of rail track,
facilities, or services for light rail transit and freight rail purposes in a shared corridor that
is within or adjacent to the right-of-way.

(c) Notwithstanding any law to the contrary, a contract under paragraph (b) may also
provide for the allocation of financial responsibility, indemnification, and the procurement
of insurance for the parties for all types of claims or damages.

(d) A contract entered into under this section does not affect rights of employees under
the federal Employers' Liability Act (1908) (Railroads), Statutes at Large, volume 35, chapter
149, or the federal Railway Labor Act, Statutes at Large, volume 44, chapter 347.

Subd. 2.

Liability.

Notwithstanding any law to the contrary, a railroad and its employees
operating within a shared corridor as described in subdivision 1 has the same limits to
liability for all types of claims or damages as provided to a municipality under sections
466.04 and 466.06, in an action arising from or related to an incident occurring within,
along, or adjacent to the shared corridor. The liability limits under this paragraph apply
when the claims or damages would not have occurred but for light rail transit, including,
but not limited to, light rail transit track, facilities, services, construction, improvements,
maintenance, and operations.

Subd. 3.

Insurance.

(a) Where the council and the railroad have entered into a contract
pursuant to subdivision 1, the council must procure insurance as commercially available
that is consistent with the amount of the damages limitation established under United States
Code, title 49, section 28103(a)(2), as indexed under Fixing America's Surface Transportation
Act, Public Law 114-94, section 11415.

(b) The council must procure insurance required by paragraph (a) so that it is in place
and effective when light rail vehicles are operating during prerevenue testing and revenue
service. This minimum insurance requirement is satisfied by an overall railroad liability
policy covering all of the council's railroad obligations, and a separate policy is not required
for each freight railroad or each project.

(c) Procurement of insurance as required by this subdivision constitutes a waiver of the
liability limits for the railroad and the council under sections 466.04 and 466.06 only to the
extent that the insurance procured by the council pays the claim on an incident that occurred
within, along, or adjacent to the shared corridor.

(d) Insurance procured by the railroad itself shall not create or be construed to be a
waiver of the liability limits for the railroad established under subdivision 2.

Subd. 4.

Application.

The liability limits under subdivision 2 and the insurance
requirements under subdivision 3 apply only for that segment of a light rail transit line or
line extension in which the project formally entered the engineering phase of the Federal
Transit Administration's "New Starts" capital investment grant program between August 1,
2016, and December 31, 2016.

EFFECTIVE DATE; APPLICATION.

This section is effective the earlier of the dates
that the council (1) commences construction of a light rail transit line or line extension; or
(2) enters into a full funding grant agreement with the Federal Transit Administration for
construction of a light rail transit line or line extension, excluding an agreement entered
into prior to the date of enactment of this act. This section applies in the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 122.

Minnesota Statutes 2016, section 473.857, subdivision 2, is amended to read:


Subd. 2.

Within 60 days; report.

A hearing shall be conducted within 60 days after the
request, provided that the advisory committee or the administrative law judge shall
consolidate hearings on related requests. The 60-day period within which the hearing shall
be conducted may be extended or suspended by mutual agreement of the council and the
local governmental unit. The hearing shall not consider the need for or reasonableness of
the metropolitan system plans or parts thereof. The hearing shall afford all interested persons
an opportunity to testify and present evidence. The advisory committee or administrative
law judge may employ the appropriate technical and professional services of the office of
dispute resolution for the purpose of evaluating disputes of fact. The proceedings shall not
be deemed a contested case. Within 30 days after the hearing, the advisory committee or
the administrative law judge shall report to the council respecting the proposed amendments
to the system statements. The report shall contain findings of fact, conclusions, and
recommendations and shall apportion the costs of the proceedings among the parties.

EFFECTIVE DATE.

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

Sec. 123. MOTOR VEHICLE PARTS SALES TAXES ESTIMATION.

(a) By January 15, 2019, the commissioner of revenue must submit a report on state
general sales taxes attributable to motor vehicle repair and replacement parts to the chairs
and ranking minority members of the legislative committees with jurisdiction over taxes
and transportation policy and finance.

(b) The report must provide an estimate, based on federal data and department
consumption models, of the percentage of total sales tax revenues collected in a calendar
year from the tax rate imposed under Minnesota Statutes, section 297A.62, subdivision 1,
that is attributable to sales and purchases of motor vehicle repair and replacement parts.

(c) For purposes of this section, "motor vehicle repair and replacement parts" has the
meaning given in Minnesota Statutes, section 297A.94.

Sec. 124. TRANSPORTATION PROJECT SELECTION PROCESS.

Subdivision 1.

Adoption of policy.

(a) The commissioner of transportation, after
consultation with the Federal Highway Administration, metropolitan planning organizations,
regional development commissions, area transportation partnerships, local governments,
the Metropolitan Council, and transportation stakeholders, must develop, adopt, and
implement a policy for project evaluation and selection to apply to the project selection
process and to special program selection processes, such as corridors of commerce. The
commissioner must adopt and implement the policy no later than November 1, 2018, and
may update the policy as appropriate. The commissioner must publish the policy and updates
on the department's Web site and through other effective means selected by the commissioner.

(b) For each selection process, the policy adopted under this section must:

(1) establish a process that identifies criteria, the weight of each criterion, and a process
to score each project based on the weighted criteria; the scoring system may consider project
readiness as a criterion for evaluation, but project readiness must not be a major factor in
determining the final score;

(2) identify and apply all relevant criteria contained in enacted Minnesota or federal law,
or added by the commissioner;

(3) identify for stakeholders and the general public the candidate project selected under
each selection process and every project considered that was not selected;

(4) involve area transportation partnerships and other local authorities, as appropriate,
in the process of scoring and ranking candidate projects under consideration;

(5) publicize scoring and decision outcomes concerning each candidate project, including
the projects that were considered but not selected, and the reason each project was not
selected; and

(6) require that the projects in the state transportation improvement program include the
score assigned to the project.

(c) At a minimum, the policy adopted under this subdivision must conform with the
criteria for the corridors of commerce program under Minnesota Statutes, section 161.088,
and the transportation economic development program under Minnesota Statutes, section
174.12.

Subd. 2.

Report to legislature.

By February 1, 2019, the commissioner must submit a
report to the chairs, ranking minority members, and staff of the legislative committees with
jurisdiction over transportation policy and finance concerning the adopted policy and how
the policy is anticipated to improve the consistency, objectivity, and transparency of the
selection process. The report must include information on input from members of the public
and the organizations identified in subdivision 1.

Sec. 125. CORRIDORS OF COMMERCE PROJECT ELIGIBILITY.

Notwithstanding the requirements of Minnesota Statutes, section 161.088, subdivisions
3 to 5, the commissioner of transportation must include that segment of marked U.S. Highway
212 from Chaska to Montevideo as an eligible highway in the next project solicitation and
selection process undertaken for the corridors of commerce program under that section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 126. OAK GROVE; COMPREHENSIVE PLAN.

Subdivision 1.

Oak Grove.

Notwithstanding any law, metropolitan system plan, the
2015 system statement for the city of Oak Grove, or administrative law judge's decision to
the contrary, the area of the city that was the subject of the administrative law judge's decision
in OAH 5-2106-33226, dated May 10, 2016, is designated "rural residential" for the purposes
of the city's comprehensive plan update.

Subd. 2.

Metropolitan Council.

The Metropolitan Council shall conform its metropolitan
development guide, system plans, and the system statement for the city of Oak Grove to
accommodate the provisions in subdivision 1.

EFFECTIVE DATE.

This section is effective the day after the governing body of the
city of Oak Grove and its chief clerical officer timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3. This section applies in the counties
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 127. DRIVER'S LICENSE AGENT IN NEW BRIGHTON.

(a) The commissioner of public safety must revise the appointment of the city of New
Brighton as a driver's license agent to provide authority to operate as a full-service driver
licensing office located in New Brighton city hall. This paragraph applies notwithstanding:
(1) Minnesota Statutes, section 171.061, subdivision 2; (2) requirements under Minnesota
Rules, part 7404.0300, subpart 3; and (3) procedures for county board appointment of a
driver's license agent, including under Minnesota Rules, part 7404.0350. All other provisions
regarding the appointment and operation of a driver's license agent under Minnesota Statutes,
section 171.061, and Minnesota Rules, chapter 7404, apply.

(b) The commissioner must make the appointment under this section within two weeks
of receipt of an appointment application pursuant to the commissioner's procedures under
Minnesota Rules.

Sec. 128. ELECTRONIC STORAGE STANDARDS.

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

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 129. RULE CHANGE ON SCHOOL BUS OPERATION.

The commissioner of public safety must amend Minnesota Rules, part 7470.1000, subpart
2, so that it is consistent with Minnesota Statutes, section 169.443, subdivision 2, using the
good cause procedure under Minnesota Statutes, section 14.388.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 130. CONVEYANCE FOR HISTORICAL PURPOSES; MCKINSTRY
SURPLUS LANDS.

(a) Notwithstanding any other law to the contrary, the commissioner may convey as
provided in Minnesota Statutes, section 161.44, land described in paragraph (b), including
any improvements on the lands, owned in fee by the state for trunk highway purposes, but
no longer needed, to the Minnesota Historical Society for historical purposes. The conveyance
must be without financial consideration. The lands conveyed must become a part of the
state's historic sites program under Minnesota Statutes, chapter 138.

(b) The lands that may be conveyed are specifically related to the properties of the
McKinstry Mounds and portions of the McKinstry Village site owned by the Department
of Transportation, located along Trunk Highway 11 in Koochiching County.

Sec. 131. DEPARTMENT OF TRANSPORTATION LOAN CONVERSION.

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

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 132. MARKED INTERSTATE HIGHWAY 35 WEIGH STATION;
MORATORIUM.

(a) On or before February 1, 2018, the commissioner of transportation is prohibited from
constructing a permanent motor vehicle weigh station for the southbound direction of travel
on marked Interstate Highway 35, between the marked Interstate Highways 35W/35E split
and two miles northerly of the split. This prohibition does not apply to pavement
improvements at the weigh station.

(b) The commissioners of public safety and transportation must monitor crash rates at
the location specified under paragraph (a). The commissioners also must explore relocating
the weigh station.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 133. HIGHWAY CONSTRUCTION COSTS AND COST INFLATION STUDY.

Subdivision 1.

Highway construction cost study; requirements.

(a) The commissioner
of transportation must enter into an agreement with an organization or entity having relevant
expertise to conduct a study on highway construction costs, inflation, and cost estimating.
The study must be designed to identify and analyze the nature of discrepancies in highway
construction costs and cost inflation estimates between Minnesota and other federal and
national measures.

(b) At a minimum, the study must:

(1) include an overview of highway construction cost and cost estimation issues;

(2) establish benchmarks to compare costs in Minnesota to at least four other states that
are comparable based on climate and construction characteristics, including historical
state-by-state review of at least the following cost factors: (i) direct input costs associated
with highway construction, (ii) cost impacts from construction standards and requirements
established in law, and (iii) cost impacts from use of alternative methods of contracting and
project management;

(3) identify factors specific to Minnesota, if any, that contribute to cost differences,
based on the benchmarks established in clause (2);

(4) evaluate the methodology used for highway construction cost calculation and indexing
in Minnesota, including (i) review of associated best practices, (ii) comparison of federal
and Minnesota state highway construction cost index methodologies utilizing historical cost
data for Minnesota, (iii) identification of the reasons for any past discrepancies or differences
between state and federal highway construction cost indexing, and (iv) analysis of the
historical accuracy of the Minnesota highway construction cost index compared to actual
costs; and

(5) provide specific recommendations for road authorities and legislative changes to
reduce highway construction costs.

(c) By February 15, 2018, the commissioner must submit a report on the study to the
chairs, ranking minority members, and staff of the legislative committees with jurisdiction
over transportation policy and finance.

Subd. 2.

Project cost comparison report.

By February 15, 2018, the commissioner of
transportation must report to the chairs, ranking minority members, and staff of the senate
and house of representatives committees and divisions with jurisdiction over transportation
policy and finance comparing the estimated cost of projects and the actual cost of projects.
The report must include all projects completed in whole or in part by MnDOT from July 1,
2012, to July 1, 2017. For each project, the report must list the estimated cost of the project
prior to starting the project and the total actual cost for the project after completion. For
each project, if the actual cost was less than the estimated cost, the report must explain how
the excess funds were expended.

Sec. 134. VIBRATION MANAGEMENT PLAN ON CALHOUN ISLES PROPERTY.

(a) Before commencement of Southwest light rail transit construction activities, the
Metropolitan Council must develop and implement a project-eligible plan to prevent vibration
impacts to the Calhoun Isles property, including the high-rise building, townhomes, and
parking ramp, due to Southwest light rail transit project construction activities and operations.
The council must develop the plan at its expense.

(b) The plan must include requirements to:

(1) develop a vibration control plan for periods during construction and post construction;

(2) limit vibration levels to those established by the Federal Transit Administration;

(3) conduct pre- and post-construction inspections of buildings;

(4) install and monitor instrumentation to identify ground and building movements on
the Calhoun Isles property during construction;

(5) use equipment and methods to minimize vibration during construction and during
light rail transit operations; and

(6) conduct equipment tests for all significant vibration-generating equipment used for
construction adjacent to the Calhoun Isles property.

(c) The council must categorize the Calhoun Isles property buildings based on criteria
established by the Federal Transit Administration.

(d) The council must ensure that (1) monitoring under paragraph (b), clause (4), begins
30 days before commencement of construction activities adjacent to the Calhoun Isles
property; and (2) tests under paragraph (b), clause (6), are conducted before commencement
of the associated construction activities.

(e) The council must make reasonable efforts to coordinate and cooperate with the
Calhoun Isles Condominium Association for (1) pre- and post-construction inspections,
instrumentation installation, and monitoring on the Calhoun Isles property; and (2) activities
to establish valid categorization of buildings.

(f) Before commencement of Southwest light rail transit construction activities, the
council must establish a fair and objective damage claims process to address claims
attributable to construction and operations activities.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 135. REPORT ON DEDICATED FUND EXPENDITURES.

By February 15, 2018, the commissioners of transportation and public safety, in
consultation with the commissioner of management and budget, must jointly submit a report
to the members and staff of the legislative committees with jurisdiction over transportation
finance. The report must update the information required in the report under Laws 2015,
chapter 75, article 2, section 56, including a detailed list of expenditures and transfers from
the trunk highway fund and highway user tax distribution fund for fiscal years 2013 through
2017, and information on the purpose of each expenditure.

Sec. 136. ACTIVE TRANSPORTATION PROGRAM RECOMMENDATIONS.

(a) By October 1, 2017, the Advisory Committee on Nonmotorized Transportation under
Minnesota Statutes, section 174.37, must develop and submit recommendations to the
commissioner of transportation regarding the project evaluation and selection processes
under Minnesota Statutes, section 174.38, subdivision 7.

(b) The advisory committee is encouraged to consult with representatives from the
Bicycle Alliance of Minnesota; Minnesota Chamber of Commerce; Metropolitan Council
Transportation Accessibility Advisory Committee; Minnesota Department of Transportation
district area transportation partnerships; organizations representing elderly populations;
public health organizations with experience in active transportation; the Minnesota State
Council on Disability and other Minnesota state councils and commissions, including the
Council on Asian-Pacific Minnesotans, the Minnesota Council on Latino Affairs, the Council
for Minnesotans of African Heritage, the Minnesota Indian Affairs Council, the Office on
the Economic Status of Women, and the Cultural and Ethnic Communities Leadership
Council; and other stakeholders with expertise in equitable active transportation.

(c) In its next annual report under Minnesota Statutes, section 174.37, subdivision 4, the
advisory committee must include a summary of the recommendations under this section
and submit a copy of the report to the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation policy and finance. The report is subject
to Minnesota Statutes, section 3.195.

Sec. 137. REPORT BY COMMISSIONER OF TRANSPORTATION ON MNPASS
LANES AND TOLLING.

(a) On or before January 2, 2018, the commissioner of transportation must report to the
chairs and ranking minority members of the senate and house of representatives committees
and divisions with jurisdiction over transportation policy and finance concerning MnPASS
lanes and tolling to reduce congestion and raise revenue.

(b) At a minimum, the report must, with respect to MnPASS lanes:

(1) for each lane, state the capital costs, maintenance and repair costs, and operation
costs;

(2) for each lane, indicate the current condition and the projected life expectancy;

(3) for each lane, list and explain the cost recovery ratio;

(4) list the amounts of the deposit of revenues made each year since pursuant to Minnesota
Statutes, section 160.93, subdivisions 2 and 2a, including a breakdown of deposits for each
lane for each year the lane has been in existence;

(5) list the cost to participate in the MnPASS program, broken down by each year a lane
has been in existence;

(6) for each lane, list the total number of users, including a breakdown of the total number
of each type of user; and

(7) provide an explanation of how MnPASS lane regulations are enforced.

(c) At a minimum, the report must, with respect to tolling:

(1) summarize current state and federal laws that affect the use of tolling in this state;

(2) identify any federal pilot projects for which this state is eligible to participate;

(3) discuss the feasibility and cost of expanding use of tolling, the possibility of private
investment in toll roads, and projected costs and cost recovery in establishing, operating,
and maintaining toll roads;

(4) review tolling models and technology options;

(5) summarize the experience of other states that have widely implemented tolling;

(6) identify and evaluate the feasibility of toll implementation for specific corridors;

(7) project the likely range of revenues that could be generated by wider implementation
of tolling and identify the percentage of revenues that are projected to be paid by nonresidents
of the state;

(8) discuss options for use of tolling revenue and measures to ensure compliance with
laws governing operation of toll roads and use of revenues;

(9) recommend and discuss possible ways to reduce cost to Minnesotans, such as tax
deductions or credits, or types of discounts; and

(10) provide recommendations for needed statutory or rule changes that would facilitate
wider implementation of tolling and achieve maximum revenues for the state and equity
for its residents.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 138. REPORT BY COMMISSIONER OF TRANSPORTATION ON
TURNBACKS.

By February 15, 2018, the commissioner of transportation must report to the chairs and
ranking minority members of the senate and house of representatives committees having
jurisdiction over transportation policy and finance concerning turnbacks. At a minimum,
the report must include:

(1) a current list of proposed turnback projects, including a description of each segment
of highway that is to be turned back; a description of the restoration work to be completed;
estimated cost of restoration work; to which entity the highway will be turned back; and
the total estimated cost related to all aspects of the turnback;

(2) the amount that the commissioner of transportation anticipates will be needed for
turnbacks during the next two fiscal years and a list of the turnbacks that will be accomplished
with the anticipated funds;

(3) a description of the turnback process, including an explanation of how turnback
projects are selected; and

(4) for each of the past five years:

(i) the amount of money that accrued to the county turnback account and to the municipal
turnback account;

(ii) a description of each segment of highway that was restored and turned back, including
what restoration work was completed; total cost of restoration work; to which entity the
highway was turned back; and the total cost related to all aspects of the turnback;

(iii) the amount of surplus funds, if any, that were transferred to the county state-aid
highway fund or to the municipal state-aid street fund pursuant to Minnesota Statutes, section
161.084; and

(iv) each payment made to a local government for future restoration after the road is
turned back, a description of the work to be completed with the funds, and a schedule
detailing when the work was completed or will be completed.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 139. WORKING GROUP FOR INTERSECTION IN WILKIN COUNTY;
REPORT.

(a) By September 1, 2017, the commissioner of transportation must convene a working
group to consider potential options for Wilkin County Road 19 between marked Trunk
Highway 55 and the railroad tracks north of marked Trunk Highway 55. The working group
must consist of the commissioner, or designee, and one representative from each of the
following: Minn-Dak Farmers Cooperative; the Wilkin County Board; the town board of
Champion; and the city council of Nashua. By December 15, 2017, the working group must
identify project options to address safety concerns of local residents at this location. For
each identified project, the commissioner must include an estimated cost and the estimated
date by which the project would be completed. The working group must then identify a
preferred option. Based on that preferred option, the responsible parties must develop funding
strategies and a delivery schedule with the goal that the project be completed by December
31, 2019.

(b) By January 1, 2018, the commissioner must report to the chairs, ranking minority
members, and staff of the senate and house of representatives committees or divisions with
jurisdiction over transportation policy and finance. The report must, at a minimum, include:
a summary of the meetings held by the working group; the project options identified and
the commissioner estimates associated with each option; and, if identified, the preferred
option and the funding and delivery schedule for that option.

Sec. 140. METRO MOBILITY TASK FORCE.

Subdivision 1.

Task force established.

A Metro Mobility Task Force is established to
examine the Metro Mobility program under Minnesota Statutes, section 473.386. The goal
of the task force is to identify options and methods to increase program effectiveness and
efficiency, minimize program costs, and improve service including through potential
partnership with taxi service providers and transportation network companies, as defined
in Minnesota Statutes, section 65B.472, subdivision 1, paragraph (e).

Subd. 2.

Membership.

(a) The task force consists of the following members:

(1) one representative from Metro Mobility, appointed by the Metropolitan Council;

(2) one elected official from each metropolitan county, as defined in Minnesota Statutes,
section 473.121, subdivision 4, each of whom must be from a district or unit of government
that is located within the Metro Mobility service area, appointed by the respective county
board in consultation with cities in that county;

(3) at least one and no more than three individuals representing transportation network
companies, as defined in Minnesota Statutes, section 65B.472, subdivision 1, appointed as
provided under paragraph (b);

(4) at least one and no more than three individuals representing taxi service providers,
appointed as provided in paragraph (c);

(5) one representative appointed by the Transportation Accessibility Advisory Committee
established under Minnesota Statutes, section 473.375, subdivision 9a;

(6) one representative appointed by the Council on Disability;

(7) one representative appointed by the commissioner of human services;

(8) one representative appointed by the commissioner of management and budget;

(9) one individual appointed by the Association of Residential Resources of Minnesota;
and

(10) one individual appointed by the Center for Transportation Studies at the University
of Minnesota.

(b) An interested transportation network company may appoint no more than one person
as a task force member. Appointment under this paragraph is on a first-come, first-appointed
basis by written notification to the Metropolitan Council.

(c) An interested taxi service provider may appoint no more than one person as a task
force member. Appointment under this paragraph is on a first-come, first-appointed basis
by written notification to the Metropolitan Council.

(d) The task force members specified under paragraph (a), clauses (1), (3), and (4), are
nonvoting members of the task force.

Subd. 3.

Task force duties.

(a) The task force must evaluate the Metro Mobility program,
which must include but is not limited to analysis of customer service, program costs and
expenditures, service coverage area and hours, reservation and scheduling, and buses and
equipment.

(b) The task force must identify and analyze options to improve Metro Mobility program
service, limit costs, and improve efficiency.

(c) At a minimum, the task force must consider:

(1) availability of transit, transportation network company, and taxi service throughout
the Metro Mobility service area;

(2) demand responsiveness and service levels;

(3) share of trips in which specially equipped vehicles that comply with the Americans
with Disabilities Act are necessary;

(4) technology accessibility for Metro Mobility customers;

(5) liability considerations;

(6) integration with regional transit service;

(7) integration with Department of Human Services programs and services;

(8) partnerships with transportation network companies and taxi providers, including
methods to integrate billing or fare collection;

(9) potential to use transportation network companies or taxi services to provide an
enhanced service option in which riders pay a higher fare than other users of Metro Mobility
Services; and

(10) proposals and models from other service areas for incorporating transportation
network companies and taxi service providers into transit systems.

Subd. 4.

Administration.

(a) Each appointing entity under subdivision 2 must make
appointments and notify the Metropolitan Council by August 1, 2017.

(b) The Metropolitan Council representative appointed to the task force must convene
the initial meeting of the task force no later than September 1, 2017. At the initial meeting,
the members of the task force must elect a chair or cochairs from among the task force
members.

(c) Upon request of the task force, the council must use existing resources to provide
data, information, meeting space, and administrative services.

(d) Members of the task force serve without compensation or payment of expenses.

(e) The task force may accept gifts and grants, which are accepted on behalf of the state
and constitute donations to the Metropolitan Council. Funds received under this paragraph
are appropriated to the Metropolitan Council for purposes of the task force.

Subd. 5.

Legislative report.

(a) By February 15, 2018, the task force must submit a
report to the chairs, ranking minority members, and staff of the legislative committees with
jurisdiction over transportation policy and finance.

(b) At a minimum, the report must:

(1) describe the current Metro Mobility program;

(2) summarize the work of the task force and its findings;

(3) identify options for reducing program costs and improving efficiency;

(4) identify at least three potential service level approaches that involve partnering with
and incorporating transportation network companies, taxi service providers, or both; and

(5) provide any recommendations for program and legislative changes.

Subd. 6.

Expiration.

The task force under this section expires February 15, 2018, or
upon submission of the report required under subdivision 5, whichever is earlier.

Sec. 141. LEGISLATIVE ROUTE NO. 123 REMOVED.

(a) Minnesota Statutes, section 161.115, subdivision 54, is repealed effective the day
after the commissioner of transportation receives a copy of the agreement between the
commissioner and the governing body of Le Sueur County to transfer jurisdiction of
Legislative Route No. 123 and after the commissioner notifies the revisor of statutes under
paragraph (b).