as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to motor carriers; deregulating motor 1.3 carriers of passengers and providers of personal 1.4 transportation service; providing for special 1.5 transportation service; making technical changes; 1.6 appropriating money; amending Minnesota Statutes 1996, 1.7 sections 174.29, subdivision 1; 174.30, subdivisions 1.8 2a, 3, 4, 4a, 6, 7, 8, and by adding a subdivision; 1.9 221.011, subdivision 15, and by adding a subdivision; 1.10 221.021; 221.022; 221.025; 221.031, subdivisions 1, 1.11 3a, and 3b; 221.0314, subdivision 1; 221.091; 221.124; 1.12 221.131, subdivision 2; 221.141, subdivision 1; 1.13 221.172, subdivision 10; 221.185, subdivisions 1, 3, 1.14 and by adding a subdivision; 221.291, subdivision 4; 1.15 and 256B.04, subdivision 12; proposing coding for new 1.16 law in Minnesota Statutes, chapter 221; repealing 1.17 Minnesota Statutes 1996, sections 168.011, subdivision 1.18 36; 168.1281; 174.30, subdivision 1; 221.011, 1.19 subdivisions 2b, 8, 9, 10, 12, 14, 20, 21, 24, 25, 28, 1.20 32, 34, 35, 36, 38, 39, 40, 41, 44, 45, and 46; 1.21 221.0313; 221.0315; 221.041; 221.051; 221.061; 1.22 221.071; 221.072; 221.081; 221.101; 221.111; 221.121; 1.23 221.122; 221.123; 221.131, subdivisions 1, 2a, 3, 4, 1.24 and 5; 221.132; 221.141, subdivision 6; 221.151; 1.25 221.152; 221.153; 221.161; 221.165; 221.171; 221.172, 1.26 subdivisions 3, 4, 5, 6, 7, 8, and 9; 221.185, 1.27 subdivisions 2, 3a, 4, 5, 5a, and 9; 221.241; 221.281; 1.28 221.291, subdivision 5; 221.293; 221.296; 221.54; 1.29 221.55; and 221.85. 1.30 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.31 Section 1. Minnesota Statutes 1996, section 174.29, 1.32 subdivision 1, is amended to read: 1.33 Subdivision 1. [DEFINITION.] For the purpose ofsections1.34174.29 and 174.30subdivision 2, "special transportation service" 1.35 means motor vehicle transportation provided on a regular basis 1.36 by a public or private entity or person that is designed 1.37 exclusively or primarily to serve individuals who are elderly, 2.1 handicapped, or disabled and who are unable to use regular means 2.2 of transportation but do not require ambulance service, as 2.3 defined in section 144.801, subdivision 4. Special 2.4 transportation service includes but is not limited to service 2.5 provided by specially equipped buses, vans, taxis, and 2.6 volunteers driving private automobiles. 2.7 Sec. 2. Minnesota Statutes 1996, section 174.30, is 2.8 amended by adding a subdivision to read: 2.9 Subd. 1a. [SCOPE.] The terms used in this section have the 2.10 meanings given them, as follows: 2.11 (a) "Provider" means a public or private entity or person 2.12 who transports, or represents itself as being able or equipped 2.13 to transport, special transportation passengers, either 2.14 individually or in groups, except for transportation provided: 2.15 (1) under a certificate or permit issued by the 2.16 commissioner under chapter 221; 2.17 (2) in a school bus as defined in section 169.01, 2.18 subdivision 6, or an ambulance regulated under chapter 144; 2.19 (3) by a volunteer driver using a private automobile or 2.20 van; or 2.21 (4) by a nursing home licensed under section 144A.02, a 2.22 board and care facility licensed under section 144.50, or a day 2.23 training and habilitation service, day care, or group home 2.24 facility licensed under sections 245A.01 to 245A.19, unless the 2.25 facility or program provides transportation to nonresidents on a 2.26 regular basis and the facility receives reimbursement, other 2.27 than per diem payments, for that service under rules adopted by 2.28 the commissioner of human services. 2.29 (b) "Special transportation service" means transportation 2.30 by motor vehicle that is arranged between a provider and a 2.31 special transportation passenger. 2.32 (c) "Special transportation passenger" means an elderly 2.33 person or a person with a disability who does not require 2.34 ambulance service as defined in section 144.801, subdivision 4, 2.35 but who, because of a physical or mental impairment, (1) 2.36 requires a vehicle that is accessible to persons with 3.1 disabilities, (2) needs or is likely to need the type of 3.2 assistance described in section 174.255, subdivision 3, or (3) 3.3 needs personal assistance to enter, ride in, or exit the 3.4 vehicle. A vehicle is accessible if it is equipped to allow 3.5 transportation of an individual confined to a wheelchair or 3.6 using an orthopedic device. 3.7 Sec. 3. Minnesota Statutes 1996, section 174.30, 3.8 subdivision 2a, is amended to read: 3.9 Subd. 2a. [VEHICLE AND EQUIPMENT SAFETY; PROVIDER 3.10 RESPONSIBILITIES.] (a)Every special transportation serviceA 3.11 provider shall systematically inspect, repair, and maintain, or 3.12 cause to be inspected, repaired, and maintained, the vehicles 3.13 and equipment subject to the control of the provider. Each 3.14 vehicle and its equipment must be inspected daily. A vehicle 3.15 may not be operated in a condition that is likely to cause an 3.16 accident or breakdown of the vehicle. Equipment, including 3.17 specialized equipment necessary to ensure vehicle usability and 3.18 safety fordisabled personsspecial transportation passengers, 3.19 must be in proper and safe operating condition at all times. 3.20 (b)Each special transportationA provider shall maintain 3.21 the following records for each vehicle it uses to provide 3.22 special transportation service: 3.23 (1) an identification of the vehicle, including make, 3.24 serial number, and year, and, if the vehicle is not owned by the 3.25 provider, the name and address of the person furnishing the 3.26 vehicle; 3.27 (2) a schedule of inspection and maintenance operations to 3.28 be performed; 3.29 (3) a record of inspections, repairs, and maintenance 3.30 showing the date and nature; 3.31 (4) a lubrication record; and 3.32 (5) a record of tests conducted to ensure that emergency 3.33 doors or windows and wheelchair lifts function properly. 3.34 Sec. 4. Minnesota Statutes 1996, section 174.30, 3.35 subdivision 3, is amended to read: 3.36 Subd. 3. [OTHER STANDARDS; WHEELCHAIR SECUREMENT.] (a) 4.1 Aspecial transportation service thatprovider who transports 4.2 individuals occupying wheelchairs is subject to the provisions 4.3 of sections 299A.11 to 299A.18 concerning wheelchair securement 4.4 devices. The commissioners of transportation and public safety 4.5 shall cooperate in the enforcement of this section and sections 4.6 299A.11 to 299A.18 so that a single inspection is sufficient to 4.7 ascertain compliance with sections 299A.11 to 299A.18 and with 4.8 the standards adopted under this section. Representatives of 4.9 the department of transportation may inspect wheelchair 4.10 securement devices in vehicles operated byspecial4.11transportation service providersa provider with a current 4.12 certificate of compliance to determine compliance with sections 4.13 299A.11 to 299A.18 and to issue certificates under section 4.14 299A.14, subdivision 4. 4.15 (b) In place of a certificate issued under section 299A.14, 4.16 the commissioner may issue a decal under subdivision 4 for a 4.17 vehicle equipped with a wheelchair securement device if the 4.18 device complies with sections 299A.11 to 299A.18 and the decal 4.19 displays the information in section 299A.14, subdivision 4. 4.20 Sec. 5. Minnesota Statutes 1996, section 174.30, 4.21 subdivision 4, is amended to read: 4.22 Subd. 4. [VEHICLE AND EQUIPMENT INSPECTION; DECAL.] (a) 4.23 The commissioner shall inspect or provide for the inspection 4.24 of a provider's vehicles at least annually. In addition to 4.25 scheduled annual inspections and reinspections scheduled for the 4.26 purpose of verifying that deficiencies have been corrected, 4.27 unannounced inspections of any vehicle may be conducted. 4.28 (b) On determining that a vehicle or vehicle equipment is 4.29 in a condition that is likely to cause an accident or breakdown, 4.30 the commissioner shall require the vehicle to be taken out of 4.31 service immediately. The commissioner shall require that 4.32 vehicles and equipment not meeting standards be repaired and 4.33 brought into conformance with the standards and shall require 4.34 written evidence of compliance from theoperatorprovider before 4.35 allowing theoperatorprovider to return the vehicle to service. 4.36 (c) The commissioner shall provide in the rules procedures 5.1 for inspecting vehicles, removing unsafe vehicles from service, 5.2 determining and requiring compliance, and reviewing driver 5.3 qualifications. 5.4 (d) The commissioner shall design a distinctive decal to be 5.5 issued tospecial transportation serviceproviders with a 5.6 current certificate of compliance under this section. A decal 5.7 is valid for one year from the last day of the month in which it 5.8 is issued. A person who is subject to the operating standards 5.9 adopted under this section may not provide special 5.10 transportation service in a vehicle that does not conspicuously 5.11 display a decal issued by the commissioner. 5.12 Sec. 6. Minnesota Statutes 1996, section 174.30, 5.13 subdivision 4a, is amended to read: 5.14 Subd. 4a. [CERTIFICATION OF SPECIAL TRANSPORTATION 5.15 PROVIDERS.] The commissioner shall annually evaluate or provide 5.16 for the evaluation of each providerof special transportation5.17serviceregulated under this section and certify that the 5.18 provider is in compliance with the standards under this section. 5.19 Sec. 7. Minnesota Statutes 1996, section 174.30, 5.20 subdivision 6, is amended to read: 5.21 Subd. 6. [PREEMPTION OF OTHER REQUIREMENTS.] (a) 5.22 Notwithstanding any other law, ordinance, or resolution to the 5.23 contrary,an operator of special transportation service thata 5.24 provider who has been issued a current certificate of compliance 5.25 under subdivision 4a for vehicles used to provide that service 5.26 is not required to obtain any other state or local permit, 5.27 license or certificate as a condition of operating the vehicles 5.28 for that purpose. This subdivision does not exempt any vehicle 5.29 from the requirements imposed on vehicles generally as a 5.30 condition of using the public streets and highways. 5.31 (b) The requirements of sections 169.781 to 169.783 and 5.32 chapter 221 do not apply to vehicles when they are being 5.33 operated under a current certificate of compliance issued by the 5.34 commissioner. 5.35 Sec. 8. Minnesota Statutes 1996, section 174.30, 5.36 subdivision 7, is amended to read: 6.1 Subd. 7. [ENFORCEMENT.] No state agency, political 6.2 subdivision, or other public agency shall provide any capital or 6.3 operating assistance to or reimbursement for special 6.4 transportation service unless theoperatorprovider providing 6.5 the service has a current certificate of compliance issued under 6.6 subdivision 4a. 6.7 Sec. 9. Minnesota Statutes 1996, section 174.30, 6.8 subdivision 8, is amended to read: 6.9 Subd. 8. [ADMINISTRATIVE PENALTIES.] The commissioner may 6.10 issue an order requiring violations of this section and the 6.11 operating standards adopted under this section to be corrected 6.12 and assessing monetary penalties of up to $1,000 for all 6.13 violations identified during a single inspection, investigation, 6.14 or audit. Section 221.036 applies to administrative penalty 6.15 orders issued under this section or section 174.315. The 6.16 commissioner shall suspend, without a hearing, aspecial6.17transportation serviceprovider's certificate of compliance for 6.18 failure to pay, or make satisfactory arrangements to pay, an 6.19 administrative penalty when due. 6.20 Penalties collected under this section must be deposited in 6.21 the state treasury and credited to the trunk highway fund. 6.22 Sec. 10. Minnesota Statutes 1996, section 221.011, 6.23 subdivision 15, is amended to read: 6.24 Subd. 15. [MOTOR CARRIER.] "Motor carrier" means acarrier6.25operating for hire under the authority of this chapter and6.26subject to the rules and orders of the commissioner or the board6.27 person engaged in the for-hire transportation of property or 6.28 passengers. "Motor carrier" does not include a building mover 6.29 subject to section 221.81 or a limousine operator subject to 6.30 section 221.84. 6.31 Sec. 11. Minnesota Statutes 1996, section 221.011, is 6.32 amended by adding a subdivision to read: 6.33 Subd. 48. [MOTOR CARRIER OF PASSENGERS.] "Motor carrier of 6.34 passengers" means a motor carrier engaged in the for-hire 6.35 transportation of passengers in Minnesota, who has filed a 6.36 registration statement with the commissioner. 7.1 Sec. 12. Minnesota Statutes 1996, section 221.021, is 7.2 amended to read: 7.3 221.021 [OPERATIONCERTIFICATEOR PERMITOF REGISTRATION 7.4 REQUIRED.] 7.5 Subdivision 1. [REQUIREMENT.] No person may operateas a7.6motor carrieror advertiseor otherwise hold outas a motor 7.7 carrier without a certificateor permitof registration in 7.8 effect.A certificate or permit may be suspended or revoked7.9upon conviction of violating a provision of sections 221.011 to7.10221.296 or an order or rule of the commissioner or board7.11governing the operation of motor carriers, and upon a finding by7.12the court that the violation was willful. The board may, for7.13good cause after a hearing, suspend or revoke a certificate or7.14permit for a violation of a provision of sections 221.011 to7.15221.296 or an order issued or rule adopted by the commissioner7.16or board under7.17 Subd. 2. [SANCTIONS.] The commissioner may suspend, 7.18 revoke, or deny renewal of a certificate of registration for 7.19 serious or repeated violations of this chapter. 7.20 Subd. 3. [HEARING.] A carrier affected by an action of the 7.21 commissioner under this section may, within 20 days of receipt 7.22 of a notice of the commissioner's action, request an 7.23 administrative hearing to review the certificate suspension, 7.24 revocation, or denial of renewal. The hearing must be conducted 7.25 under the conference contested case rules of the office of 7.26 administrative hearings. 7.27 Sec. 13. [221.0212] [PASSENGER CARRIERS; REGISTRATION 7.28 AUDIT AND INSPECTION; FEE.] 7.29 Before issuing a new or annual certificate of registration 7.30 to a motor carrier of passengers under section 221.0252, the 7.31 commissioner shall: 7.32 (1) conduct an audit of the motor carrier's records; 7.33 (2) inspect the vehicles the carrier uses in its motor 7.34 carrier operation to determine if they comply with the federal 7.35 regulations incorporated in section 221.0314 or accept for 7.36 filing proof that such an inspection was conducted within the 8.1 previous 30 days by a qualified vehicle inspector certified by 8.2 the department of public safety; 8.3 (3) verify that the carrier has a designated office in 8.4 Minnesota where the books and files necessary to conduct 8.5 business and the records required by this chapter are kept and 8.6 shall be available for inspection by the commissioner; 8.7 (4) audit the carrier's drivers' criminal background and 8.8 safety records; 8.9 (5) verify compliance with the insurance and bonding 8.10 requirements of section 221.141; and 8.11 (6) collect a registration fee of $500, which must be 8.12 deposited in the trunk highway fund. 8.13 Sec. 14. Minnesota Statutes 1996, section 221.022, is 8.14 amended to read: 8.15 221.022 [EXCEPTION.] 8.16The powers granted to the board under sections 221.011 to8.17221.296 do not include the powerSections 221.021, 221.0212, and 8.18 221.0252 do not apply toregulateany service or vehicles 8.19 operated by the metropolitan council or toregulatepassenger 8.20 transportation service provided under contract to the department 8.21 or the metropolitan council. A provider of passenger 8.22 transportation service under contract to the department or the 8.23 metropolitan council may not provide charter service, as defined 8.24 in Code of Federal Regulations, title 49, section 604.5, without 8.25 first havingobtained a permit to operate as a charter8.26carriercomplied with section 221.0252 and Code of Federal 8.27 Regulations, title 49, part 604. 8.28 Sec. 15. Minnesota Statutes 1996, section 221.025, is 8.29 amended to read: 8.30 221.025 [EXEMPTIONS.] 8.31The provisions of this chapter requiring a certificate or8.32permit to operate as a motor carrierSections 221.021, 221.0212, 8.33 221.0251, 221.0252, and 221.026 do not apply to the intrastate 8.34 transportation described below: 8.35 (a) the transportation of students to or from school or 8.36 school activities in a school bus inspected and certified under 9.1 section 169.451 and the transportation of children or parents to 9.2 or from a Head Start facility or Head Start activity in a Head 9.3 Start bus inspected and certified under section 169.451; 9.4 (b) the transportation of solid waste, as defined in 9.5 section 116.06, subdivision 22, including recyclable materials 9.6 and waste tires, except that the term "hazardous waste" has the 9.7 meaning given it in section 221.011, subdivision 31; 9.8 (c) a commuter van as defined in section 221.011, 9.9 subdivision 27; 9.10 (d) authorized emergency vehicles as defined in section 9.11 169.01, subdivision 5, including ambulances; and tow trucks 9.12 equipped with proper and legal warning devices when picking up 9.13 and transporting (1) disabled or wrecked motor vehicles or (2) 9.14 vehicles towed or transported under a towing order issued by a 9.15 public employee authorized to issue a towing order; 9.16 (e) the transportation of grain samplesunder conditions9.17prescribed by the board; 9.18 (f) the delivery of agricultural lime; 9.19 (g) the transportation of dirt and sod within an area 9.20 having a 50-mile radius from the home post office of the person 9.21 performing the transportation; 9.22 (h) the transportation of sand, gravel, bituminous asphalt 9.23 mix, concrete ready mix, concrete blocks or tile and the mortar 9.24 mix to be used with the concrete blocks or tile, or crushed rock 9.25 to or from the point of loading or a place of gathering within 9.26 an area having a 50-mile radius from that person's home post 9.27 office or a 50-mile radius from the site of construction or 9.28 maintenance of public roads and streets; 9.29 (i) the transportation of pulpwood, cordwood, mining 9.30 timber, poles, posts, decorator evergreens, wood chips, sawdust, 9.31 shavings, and bark from the place where the products are 9.32 produced to the point where they are to be used or shipped; 9.33 (j) the transportation of fresh vegetables from farms to 9.34 canneries or viner stations, from viner stations to canneries, 9.35 or from canneries to canneries during the harvesting, canning, 9.36 or packing season, or transporting sugar beets, wild rice, or 10.1 rutabagas from the field of production to the first place of 10.2 delivery or unloading, including a processing plant, warehouse, 10.3 or railroad siding; 10.4 (k) the transportation of property or freight, other than 10.5 household goods and petroleum products in bulk, entirely within 10.6 the corporate limits of a city or between contiguous cities 10.7 except as provided in section 221.296; 10.8 (l) the transportation of unprocessed dairy products in 10.9 bulk within an area having a 100-mile radius from the home post 10.10 office of the person providing the transportation; 10.11 (m) the transportation of agricultural, horticultural, 10.12 dairy, livestock, or other farm products within an area having a 10.13 25-mile radius from the person's home post office and the 10.14 carrier may transport other commodities within the 25-mile 10.15 radius if the destination of each haul is a farm; 10.16 (n) passenger transportation servicethat is not charter10.17service andthat is under contract to and with operating 10.18 assistance from the department or the metropolitan council; 10.19 (o) the transportation of newspapers, as defined in section 10.20 331A.01, subdivision 5, telephone books, handbills, circulars, 10.21 or pamphlets in a vehicle with a gross vehicle weight of 10,000 10.22 pounds or less; and 10.23 (p) transportation of potatoes from the field of 10.24 production, or a storage site owned or otherwise controlled by 10.25 the producer, to the first place of processing. 10.26 The exemptions provided in this section apply to a person 10.27 only while the person is exclusively engaged in exempt 10.28 transportation. 10.29 Sec. 16. [221.0252] [PASSENGER CARRIER REGISTRATION.] 10.30 Subdivision 1. [REGISTRATION STATEMENT.] A person who 10.31 wishes to operate as a motor carrier of passengers shall file a 10.32 complete and accurate registration statement with the 10.33 commissioner. A registration statement must be on a form 10.34 provided by the commissioner and include: 10.35 (1) the registrant's name, including an assumed or 10.36 fictitious name used by the registrant in doing business; 11.1 (2) the registrant's mailing address and business telephone 11.2 number; 11.3 (3) the registrant's federal employer identification number 11.4 and Minnesota business identification number and the 11.5 identification numbers, if any, assigned to the registrant by 11.6 the United States Department of Transportation, Interstate 11.7 Commerce Commission, or Environmental Protection Agency; 11.8 (4) the name, title, and telephone number of the individual 11.9 who is principally responsible for the operation of the 11.10 registrant's transportation business; 11.11 (5) the principal location from which the registrant 11.12 conducts its transportation business and where the records 11.13 required by this chapter will be kept; 11.14 (6) if different from clause (5), the location in Minnesota 11.15 where the records required by this chapter will be available for 11.16 inspection and copying by the commissioner; 11.17 (7) whether the registrant's business is a corporation, 11.18 partnership, limited liability partnership, limited liability 11.19 company, or sole proprietorship; and 11.20 (8) if the registrant is a foreign corporation authorized 11.21 to transact business in Minnesota, the state of incorporation 11.22 and the name and address of its registered agent. 11.23 Subd. 2. [SIGNATURE REQUIRED.] A registration statement 11.24 may be signed only by a corporate officer, general partner, 11.25 limited liability company board member, or sole proprietor. A 11.26 signature must be notarized. 11.27 Subd. 3. [CERTIFICATE OF REGISTRATION; REQUIREMENTS; 11.28 ISSUANCE; DURATION.] (a) The commissioner shall issue a motor 11.29 carrier of passengers certificate of registration to a motor 11.30 carrier of passengers who has filed a registration statement 11.31 that complies with subdivisions 1 and 2, has paid the required 11.32 fee, has a satisfactory safety rating, and has complied with the 11.33 financial responsibility requirements in section 221.141. 11.34 (b) A photocopy of the carrier's certificate of 11.35 registration must be carried in each vehicle operated under the 11.36 registration and must be made available to the department and 12.1 other law enforcement officials upon request. 12.2 (c) A motor carrier of passengers registration is not 12.3 assignable or transferable and is valid until it expires or is 12.4 suspended, revoked, or canceled, whichever occurs first. A 12.5 registration is valid for one year from the date issued. 12.6 Subd. 4. [SAFETY REGULATIONS.] A motor carrier of 12.7 passengers shall comply with the federal regulations 12.8 incorporated by reference in section 221.0314 unless exempt 12.9 under section 221.031. 12.10 Subd. 5. [SUSPENSION FOR UNSATISFACTORY SAFETY 12.11 RATING.] Following the procedures in section 221.185, the 12.12 commissioner shall immediately suspend the registration of a 12.13 motor carrier of passengers who receives an unsatisfactory 12.14 safety rating. The commissioner shall conduct one follow-up 12.15 compliance audit to determine if the motor carrier's safety 12.16 rating should be changed or the suspension rescinded within 30 12.17 days of receiving a written request from the carrier. 12.18 Additional compliance reviews may be conducted at the 12.19 commissioner's discretion. 12.20 Subd. 6. [ANNUAL RENEWAL.] A motor carrier of passengers 12.21 shall renew its registration each year on a form prescribed by 12.22 the commissioner. The commissioner shall develop and implement 12.23 an expedited renewal process to minimize the burden on motor 12.24 carriers. 12.25 Sec. 17. Minnesota Statutes 1996, section 221.031, 12.26 subdivision 1, is amended to read: 12.27 Subdivision 1. [POWERS, DUTIES, REPORTS, LIMITATIONS.] (a) 12.28 This subdivision applies to motor carriers engaged in intrastate 12.29 commerce. 12.30 (b) The commissioner shall prescribe rules for the 12.31 operation of motor carriers, including their facilities; 12.32 accounts; leasing of vehicles and drivers; service; safe 12.33 operation of vehicles; equipment, parts, and accessories; hours 12.34 of service of drivers; driver qualifications; accident 12.35 reporting; identification of vehicles; installation of safety 12.36 devices; inspection, repair, and maintenance; and proper 13.1 automatic speed regulators if, in the opinion of the 13.2 commissioner, there is a need for the rules. 13.3 (c) The commissioner shall direct the repair and 13.4 reconstruction or replacement of an inadequate or unsafe motor 13.5 carrier vehicle or facility. The commissioner may require the 13.6 construction and maintenance or furnishing of suitable and 13.7 proper freight terminals, passenger depots, waiting rooms, and 13.8 accommodations or shelters in a city in this state or at a point 13.9 on the highway traversed which the commissioner, after 13.10 investigation by the department, may deem just and proper for 13.11 the protection of passengers or property. 13.12(d) The commissioner shall require holders of household13.13goods mover permits, charter carrier permits, and regular route13.14passenger carrier certificates to file annual and other reports13.15including annual accounts of motor carriers, schedules of rates13.16and charges, or other data by motor carriers, regulate motor13.17carriers in matters affecting the relationship between them and13.18the traveling and shipping public, and prescribe other rules as13.19may be necessary to carry out the provisions of this chapter.13.20(e) A motor carrier subject to paragraph (d) but having13.21gross revenues from for-hire transportation in a calendar year13.22of less than $200,000 may, at the discretion of the13.23commissioner, be exempted from the filing of an annual report,13.24if instead the motor carrier files an abbreviated annual report,13.25in a form as may be prescribed by the commissioner, attesting13.26that the motor carrier's gross revenues did not exceed $200,00013.27in the previous calendar year. Motor carrier gross revenues13.28from for-hire transportation, for the purposes of this13.29subdivision only, do not include gross revenues received from13.30the operation of school buses as defined in section 169.01,13.31subdivision 6.13.32(f)(d) The commissioner shall enforce sections 169.781 to 13.33 169.783. 13.34(g) The commissioner shall make no rules relating to the13.35granting, limiting, or modifying of permits or certificates of13.36convenience and necessity, which are powers granted to the board.14.1(h) The board may extend the termini of a route or alter or14.2change the route of a regular route common carrier upon petition14.3and after finding that public convenience and necessity require14.4an extension, alteration, or change.14.5 Sec. 18. Minnesota Statutes 1996, section 221.031, 14.6 subdivision 3a, is amended to read: 14.7 Subd. 3a. [CONTRACTORS OR RECIPIENTS OF TRANSPORTATION 14.8 ASSISTANCE.] Notwithstanding subdivision 3, providers of 14.9 passenger transportation service under contract to and with 14.10 operating assistance from the department or the metropolitan 14.11 council must comply with rules for driver qualifications; 14.12 driving of motor vehicles; parts and accessories necessary for 14.13 safe operation; hours of service of drivers; inspection, repair, 14.14 and maintenance; and the rules adopted in section 221.0314, 14.15 subdivision 8, for accident reporting. 14.16 This subdivision does not apply to (1) a local transit 14.17 commission, (2) a transit authority created by the legislature, 14.18 (3) special transportation service certified by the commissioner 14.19 under section 174.30, or (4) special transportation service 14.20 defined in section174.29, subdivision 1174.30, when provided 14.21 by a volunteer driver operating a private passenger vehicle 14.22 defined in section 169.01, subdivision 3a. 14.23 Sec. 19. Minnesota Statutes 1996, section 221.031, 14.24 subdivision 3b, is amended to read: 14.25 Subd. 3b. [PASSENGER TRANSPORTATION; EXEMPTIONS.] (a) A 14.26 person who transports passengers for hire in intrastate 14.27 commerce, who is not made subject to the rules adopted in 14.28 section 221.0314 by any other provision of this section, must 14.29 comply with the rules for hours of service of drivers while 14.30 transporting employees of an employer who is directly or 14.31 indirectly paying the cost of the transportation. 14.32 (b) This subdivision does not apply to: 14.33 (1) a local transit commission; 14.34 (2) a transit authority created by law; or 14.35 (3) persons providing transportation: 14.36 (i) in a school bus as defined in section 169.01, 15.1 subdivision 6; 15.2 (ii) in a Head Start bus as defined in section 169.01, 15.3 subdivision 80; 15.4 (iii) in a commuter van; 15.5 (iv) in an authorized emergency vehicle as defined in 15.6 section 169.01, subdivision 5; 15.7 (v) in special transportation service certified by the 15.8 commissioner under section 174.30; 15.9 (vi) that is special transportation service as defined in 15.10 section174.29, subdivision 1174.30, when provided by a 15.11 volunteer driver operating a private passenger vehicle as 15.12 defined in section 169.01, subdivision 3a; 15.13 (vii) in a limousine the service of which is licensed by 15.14 the commissioner under section 221.84; or 15.15 (viii) in a taxicab, if the fare for the transportation is 15.16 determined by a meter inside the taxicab that measures the 15.17 distance traveled and displays the fare accumulated. 15.18 Sec. 20. Minnesota Statutes 1996, section 221.0314, 15.19 subdivision 1, is amended to read: 15.20 Subdivision 1. [APPLICABILITY.] (a) Intrastate motor 15.21 carriers, private carriers, and persons providing intrastate 15.22 transportation described in section 221.025, must comply with 15.23 the rules incorporated in this section to the extent required by 15.24sectionsections 221.0252, 221.026, and 221.031. Every carrier 15.25 and its officers, agents, representatives, and employees 15.26 responsible for managing, maintaining, equipping, operating, or 15.27 driving motor vehicles, or hiring, supervising, training, 15.28 assigning, or dispatching drivers, must be instructed in and 15.29 comply with the rules incorporated in this section and shall 15.30 require that its agents, representatives, drivers, and employees 15.31 comply. 15.32 (b) In the rules incorporated in subdivisions 2 to 11: 15.33 (1) the term "motor carrier" means a carrier required to 15.34 comply with this section by section 221.0252, 221.026, or 15.35 221.031; 15.36 (2) a reference to a federal agency or office means the 16.1 Minnesota department of transportation; and 16.2 (3) a reference to a federal administrative officer means 16.3 the commissioner of the Minnesota department of transportation. 16.4 Sec. 21. Minnesota Statutes 1996, section 221.091, is 16.5 amended to read: 16.6 221.091 [LIMITATIONS; RELATIONSHIP TO LOCAL REGULATION.] 16.7No provision inSections 221.011 to 221.291 and 221.84to16.8221.85 shalldo not authorize the use byanya carrier of 16.9anya public highway inanya city of the first class in 16.10 violation ofanya charter provision or ordinance ofsuchthe 16.11 city in effect January 1, 1925, unlessand except as suchthe 16.12 charterprovisionsprovision or ordinancemay beis repealed 16.13 after that date; nor shall. In addition, sections 221.011 to 16.14 221.291 and 221.84to 221.85 be construed as in any manner16.15taking from or curtailingdo not (1) curtail the right ofanya 16.16 city to reasonably regulate or control the routing, parking, 16.17 speed orthesafety of operation of a motor vehicle operated by 16.18anya carrier under the terms of those sections,or(2) curtail 16.19 the general police power ofany suchthe city over its highways;16.20nor shall sections 221.011 to 221.291 and 221.84 to 221.85 be16.21construed as abrogating, or (3) abrogate any provision of 16.22 the city's charterof any such cityrequiring certain conditions 16.23 to be complied with beforesucha carrier can use the highways 16.24 ofsuchthe city andsuchthese rights and powersherein16.25statedareherebyexpressly reserved and granted tosuchthe 16.26 city; but. However, nosuchcity shall prohibit or deny the use 16.27 of the public highways within its territorial boundaries byany16.28sucha carrier fortransportation oftransporting passengers or 16.29 property received within its boundaries to destinations 16.30 beyondsuchthe city's boundaries, or fortransportation16.31oftransporting passengers or property from points beyondsuch16.32 the city's boundaries to destinations within thesamethe city's 16.33 boundaries, or fortransportation oftransporting passengers or 16.34 property from points beyondsuchthe city's boundaries through 16.35such municipalitythe city to points beyond the city's 16.36 boundariesof such municipality, where such operationwhen the 17.1 carrier is operating pursuant to a certificate ofconvenience17.2and necessity issued by the commissionregistration issued under 17.3 this chapter or to a permit issuedby the commissionerunder 17.4 section 221.84or 221.85. 17.5 Sec. 22. Minnesota Statutes 1996, section 221.124, is 17.6 amended to read: 17.7 221.124 [INITIAL MOTOR CARRIER CONTACT PROGRAM.] 17.8 Subdivision 1. [INITIAL MOTOR CARRIER CONTACT.] The 17.9 initial motor carrier contact program consists of an initial 17.10 contact, for educational purposes, between a motor carrier 17.11 required to participate and representatives of the department of 17.12 transportation. The initial contact may be through an 17.13 educational seminar or, at the discretion of the department, 17.14 through a personalmeetingcontact with a representative of the 17.15 department. The initial contact must consist of a discussion of 17.16 the statutes, rules, and regulations that apply to motor 17.17 carriers. Topics discussed must include:carrier authority;17.18the leasing of drivers and vehicles;insurance requirements; 17.19tariffs; annual reports;accident reporting; accident 17.20 countermeasures; identification of vehicles; driver 17.21 qualifications; maximum hours of service of drivers; the safe 17.22 operation of vehicles; equipment, parts, and accessories; and 17.23 inspection, repair, and maintenance. The department shall 17.24 provide written documentation of proof of compliance with the 17.25 requirements of subdivision 2 and shall give a copy of the 17.26 document to the motor carrier. 17.27 Subd. 2. [PARTICIPATION REQUIRED.] A motor carrier that 17.28receives a certificate or permit fromfirst registers with 17.29 theboard for new authority on orcommissioner afterSeptember17.301, 1991July 1, 1997, shall participate in the initial motor 17.31 carrier contact program. A motor carrier required to 17.32 participate in the program must have in attendance at least one 17.33 motor carrier official having a substantial interest or control, 17.34 directly or indirectly, in or over the operations conducted or 17.35 to be conducted under thecertificate or permitcarrier's 17.36 registration. 18.1 Subd. 3. [TIME FOR COMPLIANCE.] A motor carrier required 18.2 by subdivision 2 to participate in the program must do so within 18.3 90 days ofthe service date of the order granting the18.4certificate or permitregistering. Failure to comply with the 18.5 requirement of subdivision 2 makes theorder granting the18.6certificate or permitcarrier's registration void upon 18.7 expiration of the time for compliance. 18.8 Sec. 23. Minnesota Statutes 1996, section 221.131, 18.9 subdivision 2, is amended to read: 18.10 Subd. 2. [PERMITMOTOR CARRIERS OF PASSENGERS; ANNUAL 18.11 VEHICLE REGISTRATION; FEE.] (a)This subdivision applies only to18.12holders of household goods mover permits and charter carrier18.13permits.18.14(b) The permit holderA motor carrier of passengers shall 18.15 pay an annual registration fee of $40 on each vehicle, including18.16pickup and delivery vehicles,operated by theholdercarrier 18.17 underauthority of the permitits certificate of registration 18.18 during the 12-month period or fraction of the 12-month 18.19 period.Trailers and semitrailers used by a permit holder in18.20combination with power units may not be counted as vehicles in18.21the computation of fees under this section if the permit holder18.22pays the fees for power units.18.23(c)(b) The commissioner shall furnish a distinguishing 18.24 annual identification card for each vehicleor power unitfor 18.25 which a fee has been paid. The identification card must at all 18.26 times be carried in the vehicleor power unitto which it has 18.27 been assigned. An identification card may be reassigned to 18.28 another vehicleor power unitupon application of the permit 18.29 holder and payment of a transfer fee of $10. An identification 18.30 card issued under this section is valid only for the period for 18.31 which thepermitcarrier's certificate of registration is 18.32 effective. 18.33(d)(c) A fee of $10 is charged for the replacement of an 18.34 unexpired identification card that has been lost. 18.35 (d) The proceeds of the fees collected under this 18.36 subdivision must be deposited in the trunk highway fund. 19.1 Sec. 24. Minnesota Statutes 1996, section 221.141, 19.2 subdivision 1, is amended to read: 19.3 Subdivision 1. [FINANCIAL RESPONSIBILITY OF CARRIERS.] (a) 19.4 No motor carrier and no interstate carrier shall operate a 19.5 vehicle until it has obtained and has in effect the minimum 19.6 amount of financial responsibility required by this section. 19.7 Policies of insurance, surety bonds, other types of security, 19.8 and endorsements must be continuously in effect and must remain 19.9 in effect until canceled. Before providing transportation, the 19.10 motor carrier or interstate carrier shall secure and cause to be 19.11 filed with the commissioner and maintain in full effect, a 19.12 certificate of insurance in a form required by the commissioner, 19.13 evidencing public liability insurance in the amount prescribed. 19.14 The insurance must cover injuries and damage to persons or 19.15 property resulting from the operation or use of motor vehicles, 19.16 regardless of whether each vehicle is specifically described in 19.17 the policy. This insurance does not apply to injuries or death 19.18 to the employees of the motor carrier or to property being 19.19 transported by the carrier.The commissioner shall require19.20cargo insurance for certificated carriers, except those carrying19.21passengers exclusively. The commissioner may require a permit19.22carrier to file cargo insurance when the commissioner deems19.23necessary to protect the users of the service.19.24 (b) Notwithstanding any other provision of this chapter, 19.25 the insurance required of a motor carrier of passengers must be 19.26 at least that amount required under Code of Federal Regulations, 19.27 title 49, part 387.33, as amended. 19.28 (c) Notwithstanding any other provision of this chapter, a 19.29 motor carrier of passengers is required to keep in full force 19.30 and effect and on file with the commissioner a bond with a 19.31 corporate surety to be approved by the commissioner in the 19.32 amount of $10,000. The bond must be conditioned on the faithful 19.33 performance by the carrier of all passenger transportation 19.34 service the carrier agrees to perform in the state and all 19.35 obligations imposed by the laws of this state including, but not 19.36 limited to, the payment of all taxes, license fees, and 20.1 penalties. The bond must be for the benefit of the state of 20.2 Minnesota and any person suffering monetary loss due to the 20.3 failure of the carrier to meet the obligations enumerated in 20.4 this subdivision. Proceedings on the forfeiture of the bond 20.5 must be commenced in the district court of the county in which 20.6 the business premises of the carrier are located. 20.7 Sec. 25. Minnesota Statutes 1996, section 221.172, 20.8 subdivision 10, is amended to read: 20.9 Subd. 10. [RETAINED THREE YEARS.] A shipping document or 20.10 record described insubdivisionssubdivision 2to 9, or a copy 20.11 of it, must be retained by the carrier for at least three years 20.12 from the date on the shipping document or record.A carrier may20.13keep a shipping record described in subdivisions 3 to 9 by any20.14technology that prevents the alteration, modification, or20.15erasure of the underlying data and will enable production of an20.16accurate and unaltered paper copy.A carrier shall keep a 20.17 shipping record in a manner that will make it readily accessible 20.18 and shall have a means of identifying and producing a legible 20.19 paper copy for inspection by the commissioner upon request. 20.20 Sec. 26. [221.178] [MOTOR CARRIERS OF PASSENGERS; CRIMINAL 20.21 BACKGROUND CHECK.] 20.22 Subdivision 1. [CARRIER TO CONDUCT CHECK.] A motor carrier 20.23 of passengers shall conduct, or cause to be conducted, an 20.24 initial criminal record check of a person the carrier hires or 20.25 with whom the carrier contracts whose duties include operating a 20.26 vehicle used to transport passengers for hire. This record 20.27 check must be completed before the person provides service for 20.28 the carrier. A subsequent criminal record check must be 20.29 conducted every three years. 20.30 Subd. 2. [SCOPE OF CHECK.] A criminal record check must 20.31 include a review of the state criminal records maintained by the 20.32 Minnesota bureau of criminal apprehension for convictions 20.33 entered during the five years before the check. If the 20.34 applicant has resided in Minnesota for less than five years, the 20.35 check also must include a criminal records check of information 20.36 from the state law enforcement agencies in the states where the 21.1 person resided during the five years before moving to Minnesota, 21.2 and of the national criminal records repository including the 21.3 criminal justice data communications network. 21.4 Subd. 3. [RECORDS.] A carrier shall keep a record, 21.5 identified by the employee's name, of a criminal record check 21.6 conducted under this section. A record must be made available 21.7 to the commissioner upon request. 21.8 Sec. 27. Minnesota Statutes 1996, section 221.185, 21.9 subdivision 1, is amended to read: 21.10 Subdivision 1. [GROUNDS FOR SUSPENSION.] Despite the 21.11 provisions of section 221.021,authority to operate asa motor 21.12 carrier registration issued undersections 221.011 to21.13221.296section 221.0251 or 221.0252 is suspended without a 21.14 hearing, by order of the commissioner,for a period not to21.15exceed 45 days upon the occurrence of any of the following and21.16upon notice of suspension as provided in subdivision 2:if the 21.17 motor carrier 21.18(a) the motor carrierfails to maintain and file with the 21.19 commissioner, the insurance or bond required bysectionssection 21.20 221.141and 221.296and rulesof the commissioner;adopted under 21.21 that section 21.22(b) the motor carrier fails to renew permits as required by21.23section 221.131;21.24(c) the motor carrier fails to pay annual vehicle21.25registration fees or renew permits as required by sections21.26221.071, 221.131, and 221.296; or21.27(d) the motor carrier fails to maintain in good standing a21.28protective agent's or private detective's license required under21.29section 221.121, subdivision 6g, paragraph (b), or 221.153,21.30subdivision 3or pay an administrative penalty under section 21.31 221.036. 21.32 Sec. 28. Minnesota Statutes 1996, section 221.185, is 21.33 amended by adding a subdivision to read: 21.34 Subd. 2a. [NOTICE OF SUSPENSION; EFFECTIVE DATE.] The 21.35 commissioner shall issue a notice of suspension if one of the 21.36 conditions described in subdivision 1 occurs. The notice must 22.1 give the reason for suspension and must be sent to the last 22.2 known address of the motor carrier by certified mail, return 22.3 receipt requested. A suspension is effective two days after a 22.4 notice is mailed. 22.5 Sec. 29. Minnesota Statutes 1996, section 221.185, 22.6 subdivision 3, is amended to read: 22.7 Subd. 3. [RESCIND SUSPENSION.] If the motor carrier 22.8 complies with the requirements of this chapterwithin 45 days22.9after the date of suspension and pays the required fees,22.10including a late vehicle registration fee of $5 for each vehicle22.11registered, the commissioner shall rescind the suspension unless 22.12 the carrier's registration has expired. If a motor carrier of 22.13 property fails to comply within one year of the effective date 22.14 of a suspension, the carrier's registration is canceled. 22.15 Sec. 30. Minnesota Statutes 1996, section 221.291, 22.16 subdivision 4, is amended to read: 22.17 Subd. 4. [OPERATING WITHOUT CERTIFICATEOR PERMITOF 22.18 REGISTRATION.] A person who operates a motor carrier without 22.19obtaining required certificates or permits to operate as22.20required by this chapterfirst registering under section 22.21 221.0251 or 221.0252 is guilty of a misdemeanor, and upon 22.22 conviction shall be fined not less than the maximum fine which 22.23 may be imposed for a misdemeanor for each violation. 22.24 Sec. 31. Minnesota Statutes 1996, section 256B.04, 22.25 subdivision 12, is amended to read: 22.26 Subd. 12. Place limits on the types of services covered by 22.27 medical assistance, the frequency with which the same or similar 22.28 services may be covered by medical assistance for an individual 22.29 recipient, and the amount paid for each covered service. The 22.30 state agency shall promulgate rules establishing maximum 22.31 reimbursement rates for emergency and nonemergency 22.32 transportation. 22.33 The rules shall provide: 22.34 (a) An opportunity for all recognized transportation 22.35 providers to be reimbursed for nonemergency transportation 22.36 consistent with the maximum rates established by the agency; 23.1 (b) Reimbursement of public and private nonprofit providers 23.2 serving the handicapped population generally at reasonable 23.3 maximum rates that reflect the cost of providing the service 23.4 regardless of the fare that might be charged by the provider for 23.5 similar services to individuals other than those receiving 23.6 medical assistance or medical care under this chapter; and 23.7 (c) Reimbursement for each additional passenger carried on 23.8 a single trip at a substantially lower rate than the first 23.9 passenger carried on that trip. 23.10 The commissioner shall encourage providers reimbursed under 23.11 this chapter to coordinate their operation with similar services 23.12 that are operating in the same community. To the extent 23.13 practicable, the commissioner shall encourage eligible 23.14 individuals to utilize less expensive providers capable of 23.15 serving their needs. 23.16 For the purpose of this subdivision and section 256B.02, 23.17 subdivision 8,and effective on January 1, 1981,"recognized 23.18 provider of transportation services" meansan operatora 23.19 provider of special transportation service as defined in section 23.20174.29174.30 that has been issued a current certificate of 23.21 compliance with operating standards of the commissioner of 23.22 transportation or, if those standards do not apply to 23.23 theoperatorprovider, that the agency finds is able to provide 23.24 the required transportation in a safe and reliable 23.25 manner.Until January 1, 1981, "recognized transportation23.26provider" includes an operator of special transportation service23.27that the agency finds is able to provide the required23.28transportation in a safe and reliable manner.23.29 Sec. 32. [CONVERSION OF CERTIFICATES.] 23.30 A motor carrier with a valid certificate or permit issued 23.31 by the transportation regulation board, public service 23.32 commission, public utilities commission, or commissioner of 23.33 transportation before July 1, 1997, is deemed to have registered 23.34 under Minnesota Statutes, section 221.0252, and the commissioner 23.35 of transportation shall issue a certificate of registration to 23.36 the carrier. 24.1 Sec. 33. [APPROPRIATION.] 24.2 $115,000 for the fiscal year ending June 30, 1998, and 24.3 $115,000 for the fiscal year ending June 30, 1999, are 24.4 appropriated from the trunk highway fund to the commissioner of 24.5 transportation for the purposes of sections 1 to 32. 24.6 Sec. 34. [REPEALER.] 24.7 Minnesota Statutes 1996, sections 168.011, subdivision 36; 24.8 168.1281; 174.30, subdivision 1; 221.011, subdivisions 2b, 8, 9, 24.9 10, 12, 14, 20, 21, 24, 25, 28, 32, 34, 35, 36, 38, 39, 40, 41, 24.10 44, 45, and 46; 221.0313; 221.0315; 221.041; 221.051; 221.061; 24.11 221.071; 221.072; 221.081; 221.101; 221.111; 221.121; 221.122; 24.12 221.123; 221.131, subdivisions 1, 2a, 3, 4, and 5; 221.132; 24.13 221.141, subdivision 6; 221.151; 221.152; 221.153; 221.161; 24.14 221.165; 221.171; 221.172, subdivisions 3, 4, 5, 6, 7, 8, and 9; 24.15 221.185, subdivisions 2, 3a, 4, 5, 5a, and 9; 221.241; 221.281; 24.16 221.291, subdivision 5; 221.293; 221.296; 221.54; 221.55; and 24.17 221.85, are repealed. 24.18 Sec. 35. [EFFECTIVE DATE.] 24.19 Sections 1 to 34 are effective July 1, 1997.