HF 1444

4th Engrossment - 88th Legislature (2013 - 2014) Posted on 04/24/2013 10:40pm

A bill for an act
relating to government finance; appropriating money for transportation,
Metropolitan Council, and public safety activities and programs; providing for
fund transfers, tort claims, and certain contingent appropriations; modifying
various provisions related to transportation finance and policy; making technical
and clarifying changes; amending Minnesota Statutes 2012, sections 161.20,
subdivision 3; 161.44, by adding a subdivision; 168A.01, subdivision 6a; 171.05,
subdivision 2, by adding a subdivision; 171.061, subdivision 4; 174.40, by
adding a subdivision; 219.1651; 299E.01, subdivisions 2, 3; 398A.10, by adding
a subdivision; Laws 2009, chapter 9, section 1; proposing coding for new law
in Minnesota Statutes, chapters 161; 174; repealing Minnesota Statutes 2012,
sections 161.04, subdivision 6; 174.285, subdivision 8.

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

ARTICLE 1

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. The figures "2014" and "2015" used in this article mean that
the appropriations listed under them are available for the fiscal year ending June 30, 2014,
or June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is
fiscal year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the
fiscal year ending June 30, 2013, are effective the day following final enactment.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2014		2015

Sec. 2. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

		2014		2015		Total
General	$	104,031,000	$	102,684,000	$	206,715,000
Airports		18,959,000		18,959,000		37,918,000
C.S.A.H.		593,022,000		603,850,000		1,196,872,000
M.S.A.S.		152,173,000		154,491,000		306,664,000
Special Revenue		49,753,000		49,959,000		99,712,000
H.U.T.D.		10,456,000		10,406,000		20,862,000
Trunk Highway		1,691,946,000		1,629,550,000		3,321,496,000
Total	$	2,620,340,000	$	2,569,899,000	$	5,190,239,000

Sec. 3. DEPARTMENT OF TRANSPORTATION

Subdivision 1. Total Appropriation

$

2,400,582,000

$

2,349,954,000

Appropriations by Fund
	2014	2015
General	29,500,000	28,172,000
Airports	18,959,000	18,959,000
C.S.A.H.	593,022,000	603,850,000
M.S.A.S.	152,173,000	154,491,000
Special Revenue	2,500,000	2,500,000
H.U.T.D.	50,000	0
Trunk Highway	1,604,378,000	1,541,982,000

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

13,648,000

13,648,000

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

The base appropriation is $14,298,000 in
each year for fiscal years 2016 and 2017.

Notwithstanding Minnesota Statutes, section
16A.28, subdivision 6, this appropriation
is available until expended. If the
appropriation for either year is insufficient,
the appropriation for the other year is
available for it.

(2) Aviation Support and Services

6,123,000

6,123,000

Appropriations by Fund
	2014	2015
Airports	5,286,000	5,286,000
Trunk Highway	837,000	837,000

$65,000 in each year is from the state airports
fund for the Civil Air Patrol.

(b) Transit

25,462,000

25,384,000

Appropriations by Fund
	2014	2015
General	22,187,000	22,109,000
Special Revenue	2,500,000	2,500,000
Trunk Highway	775,000	775,000

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

The base appropriation from the general fund
is $22,908,000 in each year for fiscal years
2016 and 2017.

$100,000 each year is from the general
fund for the administrative expenses of the
Minnesota Council on Transportation Access
under Minnesota Statutes, section 174.285.

(c) Safe Routes to School

250,000

250,000

This appropriation is from the general fund
for non-infrastructure activities in the safe
routes to school program under Minnesota
Statutes, section 174.40, subdivision 7a.

(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

6,153,000

5,153,000

Appropriations by Fund
	2014	2015
General	1,256,000	256,000
Trunk Highway	4,897,000	4,897,000

$1,000,000 from the general fund in
fiscal year 2014 is for the department's
share of costs associated with cleanup of
contaminated state rail bank property. This
is a onetime appropriation and is available
until expended.

Subd. 3. State Roads

(a) Operations and Maintenance

262,395,000

262,395,000

(b) Program Planning and Delivery Activity

(1) Program Planning and Delivery

206,883,000

206,733,000

Appropriations by Fund
	2014	2015
General	100,000	0
H.U.T.D.	50,000	0
Trunk Highway	206,733,000	206,733,000

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

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

$75,000 each year is available for a
transportation research contingent account
to finance research projects that are
reimbursable from the federal government or
from other sources. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.

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

$100,000 the first year is from the
general fund for development and initial
implementation of the corridors of commerce
program established under Minnesota
Statutes, section 161.088, including but
not limited to establishment of program
requirements, identification and analysis of
candidate projects, and legislative reporting.
This is a onetime appropriation.

$50,000 the first year is from the highway
user tax distribution fund to the commissioner
for a grant to the Humphrey School of Public
Affairs at the University of Minnesota for
WorkPlace Telework program congestion
relief efforts consisting of maintenance of
Web site tools and content. This is a onetime
appropriation and is available in the second
year.

(2) Transportation Research

150,000

150,000

This appropriation is from the general fund
for grants to the Humphrey School of Public
Affairs at the University of Minnesota
for research on transportation policy and
economic competitiveness, including but
not limited to innovative transportation
finance options and economic development,
transportation impacts of industry clusters
and freight, and transportation technology
impacts on economic competitiveness.

The base appropriation is $150,000 each year
for fiscal years 2016 to 2018 and $0 each
fiscal year thereafter.

(c) State Road Construction Activity

(1) State Road Construction

899,400,000

805,600,000

It is estimated that these appropriations will
be funded as follows:

Appropriations by Fund
	2014	2015
Federal Highway Aid	489,200,000	482,200,000
Highway User Taxes	410,200,000	323,400,000

The commissioner of transportation shall
notify the chairs and ranking minority
members of the legislative committees with
jurisdiction over transportation finance of
any significant events that should cause these
estimates to change.

This appropriation is for the actual
construction, reconstruction, and
improvement of trunk highways, including
design-build contracts and consultant usage
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.

The base appropriation is $668,000,000 each
year for fiscal years 2016 and 2017.

The commissioner may expend up to one-half
of one percent of the federal appropriations
under this clause 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.

(2) Economic Recovery Funds - Federal Highway Aid

1,000,000

1,000,000

This appropriation is to complete projects
using funds made available to the
commissioner of transportation under
title XII of the American Recovery and
Reinvestment Act of 2009, Public Law
111-5, and implemented under Minnesota
Statutes, section 161.36, subdivision 7. The
base appropriation is $1,000,000 in fiscal
year 2016 and $0 each fiscal year thereafter.

(3) Transportation Economic Development (TED)

10,000,000

10,000,000

Appropriations by Fund
	2014	2015
General	5,000,000	5,000,000
Trunk Highway	5,000,000	5,000,000

This appropriation is for the transportation
economic development program under
Minnesota Statutes, section 174.12.

(d) Highway Debt Service

158,417,000

189,821,000

$148,917,000 the first year and $180,321,000
the second year are for transfer to the state
bond fund. If an appropriation is insufficient
to make all transfers required in the year
for which it is made, the commissioner of
management and budget shall notify the
senate Committee on Finance and the house
of representatives Committee on Ways and
Means of the amount of the deficiency and
shall then transfer that amount under the
statutory open appropriation. Any excess
appropriation cancels to the trunk highway
fund.

(e) Electronic Communications

5,171,000

5,171,000

Appropriations by Fund
	2014	2015
General	3,000	3,000
Trunk Highway	5,168,000	5,168,000

The general fund appropriation is to equip
and operate the Roosevelt signal tower for
Lake of the Woods weather broadcasting.

Subd. 4. Local Roads

(a) County State-Aid Roads

593,022,000

603,850,000

This appropriation is from the county
state-aid highway fund under Minnesota
Statutes, sections 161.082 to 161.085, and
chapter 162, and is available until spent.

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 subdivision, 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
and ranking minority members of the
legislative committees with jurisdiction over
transportation finance concerning funds
appropriated.

(b) Municipal State-Aid Roads

152,173,000

154,491,000

This appropriation is from the municipal
state-aid street fund for the purposes under
Minnesota Statutes, chapter 162, and is
available until spent.

If the commissioner of transportation
determines that a balance remains in the
municipal state-aid street fund following
the appropriations made in this subdivision,
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
and ranking minority members of the
legislative committees with jurisdiction over
transportation finance concerning funds
appropriated.

Subd. 5. Agency Management

(a) Agency Services

41,997,000

41,997,000

Appropriations by Fund
	2014	2015
Airports	25,000	25,000
Trunk Highway	41,972,000	41,972,000

(b) Buildings

17,838,000

17,838,000

Appropriations by Fund
	2014	2015
General	54,000	54,000
Trunk Highway	17,784,000	17,784,000

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. No transfer
may be made from the appropriation for
state road construction. No transfer may
be made from the appropriations for debt
service to any other appropriation. Transfers
under this subdivision may not be made
between funds. Transfers between programs
must be reported immediately to the chairs
and ranking minority members of the
legislative committees with jurisdiction over
transportation finance.

(b) The commissioner shall transfer from
the flexible highway account in the county
state-aid highway fund: (1) $3,700,000 in
the first year to the trunk highway fund; and
(2) the remainder in each year to the county
turnback account in the county state-aid
highway fund. The funds transferred are
for highway turnback purposes as provided
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. The
commissioner of transportation shall report to
the commissioner of management and budget
by August 1, 2013, and August 1, 2014, on
a form the commissioner of management
and budget provides, on expenditures made
during the previous fiscal year that are
authorized by this subdivision.

Subd. 8. Contingent Appropriation

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

Sec. 4. METROPOLITAN COUNCIL

$

64,989,000

$

64,970,000

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

$100,000 the first year is for a transitway
expansion implementation plan as specified
in article 2, section 20. This is a onetime
appropriation.

Sec. 5. DEPARTMENT OF PUBLIC SAFETY

Subdivision 1. Total Appropriation

$

156,669,000

$

156,875,000

Appropriations by Fund
	2014	2015
General	9,542,000	9,542,000
Special Revenue	49,753,000	49,959,000
H.U.T.D.	10,406,000	10,406,000
Trunk Highway	86,968,000	86,968,000

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

434,000

434,000

Appropriations by Fund
	2014	2015
General	41,000	41,000
Trunk Highway	393,000	393,000

(b) Public Safety Support Activity

(1) Public Safety Support

7,660,000

7,660,000

Appropriations by Fund
	2014	2015
General	2,788,000	2,788,000
H.U.T.D.	1,366,000	1,366,000
Trunk Highway	3,506,000	3,506,000

$380,000 each year 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.

$1,367,000 each year 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.

$792,000 each year is from the general
fund for transfer by the commissioner of
management and budget to the trunk highway
fund on December 31, 2013, and December
31, 2014, respectively, in order to reimburse
the trunk highway fund for expenses not
related to the fund. These represent amounts
appropriated out of the trunk highway
fund for general fund purposes in the
administration and related services program.

$610,000 each year is from the highway
user tax distribution fund for transfer by the
commissioner of management and budget
to the trunk highway fund on December 31,
2013, and December 31, 2014, respectively,
in order to reimburse the trunk highway
fund for expenses not related to the fund.
These represent amounts appropriated out
of the trunk highway fund for highway
user tax distribution fund purposes in the
administration and related services program.

$716,000 each year is from the highway
user tax distribution fund for transfer by the
commissioner of management and budget to
the general fund on December 31, 2013, and
December 31, 2014, respectively, in order to
reimburse the general fund for expenses not
related to the fund. These represent amounts
appropriated out of the general fund for
operation of the criminal justice data network
related to driver and motor vehicle licensing.

(2) Soft Body Armor

700,000

700,000

Appropriations by Fund
	2014	2015
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.

(c) Technical Support Services

3,834,000

3,834,000

Appropriations by Fund
	2014	2015
General	1,471,000	1,471,000
H.U.T.D.	19,000	19,000
Trunk Highway	2,344,000	2,344,000

Subd. 3. State Patrol

(a) Patrolling Highways

72,522,000

72,522,000

Appropriations by Fund
	2014	2015
General	37,000	37,000
H.U.T.D.	92,000	92,000
Trunk Highway	72,393,000	72,393,000

(b) Commercial Vehicle Enforcement

7,796,000

7,796,000

(c) Capitol Security

4,605,000

4,605,000

This appropriation is from the general fund.

$1,500,000 each year is to implement the
recommendations of the advisory committee
on Capitol Area Security under Minnesota
Statutes, section 299E.04.

The commissioner may not: (1) spend any
money from the trunk highway fund for
Capitol security; or (2) permanently transfer
any state trooper from patrolling highways
activity to Capitol security.

The commissioner may not transfer any
money appropriated to the commissioner
under this section: (1) to Capitol security; or
(2) from Capitol security.

(d) Vehicle Crimes Unit

693,000

693,000

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 sale, transfer, titling, and registration of
motor vehicles.

Subd. 4. Driver and Vehicle Services

(a) Vehicle Services

27,909,000

28,007,000

Appropriations by Fund
	2014	2015
Special Revenue	19,673,000	19,771,000
H.U.T.D.	8,236,000	8,236,000

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

$650,000 each year is from the special
revenue fund for seven additional positions
to enhance customer service related to
vehicle title issuance.

$98,000 the second year is from the special
revenue fund for the vehicle services portion
of a new telephone system and is for transfer
to the Office of Enterprise Technology for
construction and development of the system.
This is a onetime appropriation and is
available until expended.

The base appropriation from the special
revenue fund is $19,933,000 for fiscal year
2016 and $19,836,000 for fiscal year 2017.

(b) Driver Services

28,742,000

28,835,000

Appropriations by Fund
	2014	2015
Special Revenue	28,741,000	28,834,000
Trunk Highway	1,000	1,000

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

$71,000 the second year is from the special
revenue fund for one additional position
related to facial recognition.

$52,000 the second year is from the special
revenue fund for the driver services portion
of a new telephone system and is for transfer
to the Office of Enterprise Technology for
construction and development of the system.
This is a onetime appropriation and is
available until expended.

$15,000 the first year is for the costs of
rulemaking related to concurrent driver
education under Minnesota Statutes, section
171.05. This is a onetime appropriation and
is available for two years after the year of
appropriation.

The base appropriation from the special
revenue fund is $28,923,000 for fiscal year
2016 and $28,870,00 for fiscal year 2017.

Subd. 5. Traffic Safety

435,000

435,000

The commissioner of public safety shall
spend 50 percent of the money available to
the state under United States Code, title 23,
section 164, and the remaining 50 percent
must be transferred to the commissioner
of transportation for hazard elimination
activities under United States Code, title 23,
section 152.

Subd. 6. Pipeline Safety

1,354,000

1,354,000

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

Sec. 6. TORT CLAIMS

$

600,000

$

600,000

This appropriation is to the commissioner of
management and budget.

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

Sec. 7. REAUTHORIZATION; 2008 BOND SALE EXPENSES FOR TRUNK
HIGHWAY BONDS.

$1,414,600 of the amount appropriated in Laws 2008, chapter 152, article 2, section
6, for trunk highway bond sale expenses, which was reported to the legislature according
to Minnesota Statutes, section 16A.642, subdivision 1, is reauthorized and does not cancel
under the terms of that subdivision. This appropriation for the bond sale expenses and the
bond sale authorization in Laws 2008, chapter 152, article 2, section 7, subdivision 1, as
amended, are available until December 31, 2019.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 2

TRANSPORTATION FINANCE AND POLICY

Section 1.

[161.088] CORRIDORS OF COMMERCE PROGRAM.

Subdivision 1.

Definitions.

For purposes of this section, the following terms have
the meanings given:

(1) "beyond the project limits" means any point that is located outside of the project
limits and along the same trunk highway, and is located within the same region of the state;

(2) "city" means a statutory or home rule charter city;

(3) "program" means the corridors of commerce program established in this section;
and

(4) "project limits" means the estimated construction limits of a project for trunk
highway construction, reconstruction, or maintenance that is a candidate for selection
under the corridors of commerce program.

Subd. 2.

Program authority; funding.

(a) As provided in this section and subject
to available funds, the commissioner shall establish a corridors of commerce program for
trunk highway construction, reconstruction, and improvement, including maintenance
operations, that improves commerce in the state.

(b) The commissioner may expend funds under the program from appropriations
to the commissioner that are: (1) made specifically by law for use under this section;
(2) at the discretion of the commissioner, made for the budget activities in the state
roads operations and maintenance program, program planning and delivery, or state road
construction; and (3) made for the corridor investment management strategy program,
unless otherwise specified.

(c) The commissioner shall include in the program the cost participation policy for
local units of government.

Subd. 3.

Project classification.

The commissioner shall determine whether each
candidate project can be classified into at least one of the following classifications:

(1) capacity development, for a project on a segment of a trunk highway where the
segment:

(i) is not a divided highway and that highway is an expressway or freeway beyond
the project limits;

(ii) contains a highway terminus that lacks an intersection or interchange with
another trunk highway;

(iii) contains fewer lanes of travel compared to that highway beyond the project
limits; or

(iv) contains a location that is proposed as construction of a new interchange or
reconstruction of an intersection to an interchange; or

(2) freight improvement, for an asset preservation or replacement project that can
result in:

(i) removing or reducing barriers to commerce;

(ii) easing or preserving freight movement;

(iii) supporting emerging industries; or

(iv) providing connections between the trunk highway system and other
transportation modes for the movement of freight.

Subd. 4.

Project eligibility.

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

(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 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 involving construction that is already 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.

Subd. 5.

Project selection process; criteria.

(a) The commissioner shall establish a
process for identification, evaluation, and selection of projects under the program.

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

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

(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.

(d) 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.

Subd. 6.

Funding allocations; operations and maintenance.

In identifying the
amount of funding allocated to a project under the program, the commissioner may
include allocations of funds for operations and maintenance resulting from that project
that are assigned in future years following completion of the project, subject to available
funds for the program in those years from eligible sources.

Subd. 7.

Legislative report; evaluation.

(a) By January 15, 2014, and annually
by November 1 starting in 2015, the commissioner shall 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 program implementation, including a review of the project
selection process, eligibility and criteria, funds expended in the previous selection cycle,
and total funds expended since program inception;

(2) a listing of projects funded under the program in the previous selection cycle,
including: (i) project classification; (ii) a breakdown of project costs and funding sources;
(iii) any future operating costs assigned under subdivision 6; and (iv) a brief description
that is comprehensible to a lay audience;

(3) a listing of candidate project recommendations required under subdivision 5,
paragraph (b), including project classification and disposition in the selection process;

(4) financial analysis of unfunded candidate projects; and

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

(b) Starting in 2017 and in every odd-numbered year thereafter, the commissioner
shall 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.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 2.

Minnesota Statutes 2012, section 161.20, subdivision 3, is amended to read:

Subd. 3.

Trunk highway fund appropriations.

The commissioner may expend
trunk highway funds only for trunk highway purposes. Payment of expenses related
to Bureau of Criminal Apprehension laboratory, Explore Minnesota Tourism kiosks,
Minnesota Safety Council, tort claims, driver education programs, Emergency Medical
Services Board, Mississippi River Parkway Commission, payments to MN.IT Services in
excess of actual costs incurred for trunk highway purposes, and personnel costs incurred
on behalf of the Governor's Office do not further a highway purpose and do not aid in the
construction, improvement, or maintenance of the highway system.

Sec. 3.

Minnesota Statutes 2012, section 161.44, is amended by adding a subdivision
to read:

Subd. 12.

Periodic review; appropriation.

(a) The commissioner shall examine
all real property owned by the state and under the custodial control of the department
to identify whether any may be (1) no longer needed, and (2) suitable for sale or some
other means of disposal.

(b) From the proceeds of the sale of land under this subdivision, there is annually
appropriated from the trunk highway fund to the commissioner an amount sufficient to
carry out the requirements of this subdivision and related activities under this section and
sections 117.135, 117.226, 161.16, 161.23, 161.43, 161.431, 161.433, 161.442, and 272.68.

(c) The commissioner shall report the findings under paragraph (a), and on revenues
and expenditures under this subdivision, to the legislative committees with jurisdiction
over transportation policy and finance by March 1, 2015, and March 1, 2017. The report
may be submitted electronically.

Sec. 4.

Minnesota Statutes 2012, section 168A.01, subdivision 6a, is amended to read:

Subd. 6a.

High-value vehicle.

"High-value vehicle" means a vehicle that had an
actual cash value in excess of $5,000 $9,000 before being damaged, or a vehicle with a
manufacturer's rating of over 26,000 pounds gross vehicle weight that is not a late-model
vehicle.

Sec. 5.

Minnesota Statutes 2012, section 171.05, subdivision 2, is amended to read:

Subd. 2.

Person less than 18 years of age.

(a) Notwithstanding any provision
in subdivision 1 to the contrary, the department may issue an instruction permit to an
applicant who is 15, 16, or 17 years of age and who:

(1) has completed a course of driver education in another state, has a previously
issued valid license from another state, or is enrolled in either:

(i) a public, private, or commercial driver education program that is approved by
the commissioner of public safety and that includes classroom and behind-the-wheel
training; or

(ii) an approved behind-the-wheel driver education program when the student is
receiving full-time instruction in a home school within the meaning of sections 120A.22
and 120A.24, the student is working toward a homeschool diploma, the student is taking
home-classroom driver training with classroom materials approved by the commissioner
of public safety, and the student's parent has certified the student's homeschool and
home-classroom driver training status on the form approved by the commissioner;

(2) has completed the classroom phase of instruction in the driver education program
or has completed 15 hours of classroom instruction in a program that presents classroom
and behind-the-wheel instruction concurrently;

(3) has passed a test of the applicant's eyesight;

(4) has passed a department-administered test of the applicant's knowledge of traffic
laws;

(5) has completed the required application, which must be approved by (i) either
parent when both reside in the same household as the minor applicant or, if otherwise,
then (ii) the parent or spouse of the parent having custody or, in the event there is no
court order for custody, then (iii) the parent or spouse of the parent with whom the minor
is living or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the
minor, (v) the foster parent or the director of the transitional living program in which the
child resides or, in the event a person under the age of 18 has no living father, mother,
or guardian, or is married or otherwise legally emancipated, then (vi) the applicant's
adult spouse, adult close family member, or adult employer; provided, that the approval
required by this clause contains a verification of the age of the applicant and the identity of
the parent, guardian, adult spouse, adult close family member, or adult employer; and

(6) has paid the fee all fees required in section 171.06, subdivision 2.

(b) For the purposes of determining compliance with the certification of paragraph
(a), clause (1), item (ii), the commissioner may request verification of a student's
homeschool status from the superintendent of the school district in which the student
resides and the superintendent shall provide that verification.

(c) The instruction permit is valid for two years from the date of application and
may be renewed upon payment of a fee equal to the fee for issuance of an instruction
permit under section 171.06, subdivision 2.

EFFECTIVE DATE.

This section is effective June 1, 2013.

Sec. 6.

Minnesota Statutes 2012, section 171.05, is amended by adding a subdivision
to read:

Subd. 4.

Rulemaking.

The commissioner shall adopt rules to carry out the
provisions of subdivision 2.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

Minnesota Statutes 2012, section 171.061, subdivision 4, is amended to read:

Subd. 4.

Fee; equipment.

(a) The agent may charge and retain a filing fee of $5 $8
for each application. Except as provided in paragraph (c), the fee shall cover all expenses
involved in receiving, accepting, or forwarding to the department the applications and
fees required under sections 171.02, subdivision 3; 171.06, subdivisions 2 and 2a; and
171.07, subdivisions 3 and 3a.

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

(c) The department shall maintain the photo identification equipment for all
agents appointed as of January 1, 2000. Upon the retirement, resignation, death, or
discontinuance of an existing agent, and if a new agent is appointed in an existing office
pursuant to Minnesota Rules, chapter 7404, and notwithstanding the above or Minnesota
Rules, part 7404.0400, the department shall provide and maintain photo identification
equipment without additional cost to a newly appointed agent in that office if the office
was provided the equipment by the department before January 1, 2000. All photo
identification equipment must be compatible with standards established by the department.

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

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

EFFECTIVE DATE.

This section is effective January 1, 2014.

Sec. 8.

[174.12] TRANSPORTATION ECONOMIC DEVELOPMENT
PROGRAM.

Subdivision 1.

Program established.

(a) The commissioners of transportation and
employment and economic development shall develop and implement a transportation
economic development program as provided in this section that provides financial
assistance on a geographically balanced basis through competitive grants for projects in
all modes of transportation that provide measurable local, regional, or statewide economic
benefit.

(b) The commissioners of transportation and employment and economic
development may provide financial assistance for a transportation project at their
discretion, subject to the requirements of this section.

Subd. 2.

Transportation economic development accounts.

(a) A transportation
economic development account is established in the special revenue fund under the
budgetary jurisdiction of the legislative committees having jurisdiction over transportation
finance. Money in the account may be expended only as appropriated by law. The account
may not contain money transferred or otherwise provided from the trunk highway fund.

(b) A transportation economic development account is established in the trunk
highway fund. The account consists of funds donated, allotted, transferred, or otherwise
provided to the account.

Subd. 3.

Program administration.

In implementing the transportation economic
development program, the commissioners of transportation and employment and
economic development shall make reasonable efforts to (1) publicize each solicitation for
applications among all eligible recipients, and (2) provide technical and informational
assistance in creating and submitting applications.

Subd. 4.

Economic impact performance measures.

The commissioner of
employment and economic development shall develop economic impact performance
measures to analyze projects for which financial assistance under this section is being
applied for or has been previously provided.

Subd. 5.

Financial assistance; criteria.

The commissioners of transportation and
employment and economic development shall establish criteria for evaluating projects
for financial assistance under this section. At a minimum, the criteria must provide an
objective method to prioritize and select projects on the basis of:

(1) the extent to which the project provides measurable economic benefit;

(2) consistency with relevant state and local transportation plans;

(3) the availability and commitment of funding or in-kind assistance for the project
from nonpublic sources;

(4) the need for the project as part of the overall transportation system;

(5) the extent to which completion of the project will improve the movement of
people and freight; and

(6) geographic balance as required under subdivision 7, paragraph (b).

Subd. 6.

Financial assistance; project evaluation process.

(a) Following the
criteria established under subdivision 5, the commissioner of employment and economic
development shall (1) evaluate proposed projects, and (2) certify those that may receive
financial assistance.

(b) As part of the project evaluation process, the commissioner of transportation
shall certify that a project constitutes an eligible and appropriate transportation project.

Subd. 7.

Financial assistance; awards.

(a) The financial assistance awarded by the
commissioners of transportation and employment and economic development may not
exceed 70 percent of a project's total costs.

(b) The commissioners of transportation and employment and economic development
shall ensure that financial assistance is provided in a manner that is balanced throughout
the state, including with respect to (1) the number of projects receiving funding in a
particular geographic location or region of the state, and (2) the total amount of financial
assistance provided for projects in a particular geographic location or region of the state.

Subd. 8.

Legislative report.

(a) By February 1 of each odd-numbered year, the
commissioner of transportation, with assistance from the commissioner of employment
and economic development, shall submit a report on the transportation economic
development program to the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation policy and finance and economic
development policy and finance.

(b) At a minimum, the report must:

(1) summarize the requirements and implementation of the transportation economic
development program established in this section;

(2) review the criteria and economic impact performance measures used for
evaluation, prioritization, and selection of projects;

(3) provide a brief overview of each project that received financial assistance under
the program, which must at a minimum identify:

(i) basic project characteristics, such as funding recipient, geographic location,
and type of transportation modes served;

(ii) sources and respective amounts of project funding; and

(iii) the degree of economic benefit anticipated or observed, following the economic
impact performance measures established under subdivision 4;

(4) identify the allocation of funds, including but not limited to a breakdown of total
project funds by transportation mode, the amount expended for administrative costs, and
the amount transferred to the transportation economic development assistance account;

(5) evaluate the overall economic impact of the program consistent with the
accountability measurement requirements under section 116J.997; and

(6) provide recommendations for any legislative changes related to the program.

Sec. 9.

Minnesota Statutes 2012, section 174.40, is amended by adding a subdivision
to read:

Subd. 7a.

Related non-infrastructure activities.

(a) The commissioner may not
expend an appropriation from the bond proceeds fund, or provide financial assistance from
an appropriation from the bond proceeds fund, for the purposes specified in this subdivision.

(b) Subject to appropriations made specifically for the purposes of this subdivision,
the commissioner may expend funds for non-infrastructure activities to encourage walking
and bicycling to school, including:

(1) planning activities;

(2) public awareness campaigns and outreach to press and community leaders;

(3) traffic education and enforcement in the vicinity of schools;

(4) student sessions on bicycle and pedestrian safety, health, and the environment; and

(5) financial assistance for training, volunteers, and managers of safe routes to
school programs.

Sec. 10.

[174.42] TRANSPORTATION ALTERNATIVES PROJECTS.

Subdivision 1.

Definition.

For purposes of this section, "transportation alternatives"
means those projects identified in the state transportation improvement program having
(1) a program category of bike trail, enhancement, or recreational trail; (2) any program
category that is substantially similar to a category identified in clause (1); or (3) a route
system category of ped/bike.

Subd. 2.

Funding requirement.

In each federal fiscal year, the commissioner
shall obtain a total amount in federal authorizations for reimbursement on transportation
alternatives projects that is equal to or greater than the annual average of federal
authorizations on transportation alternatives projects calculated over the preceding four
federal fiscal years.

Sec. 11.

Minnesota Statutes 2012, section 219.1651, is amended to read:

219.1651 GRADE CROSSING SAFETY ACCOUNT.

A Minnesota grade crossing safety account is created in the special revenue fund,
consisting of money credited to the account by law. Money in the account is appropriated
to the commissioner of transportation for rail-highway grade crossing safety projects
on public streets and highways, including engineering costs. At the discretion of the
commissioner of transportation, money in the account at the end of each fiscal year cancels
biennium may cancel to the trunk highway fund.

Sec. 12.

Minnesota Statutes 2012, section 299E.01, subdivision 2, is amended to read:

Subd. 2.

Responsibilities.

(a) The division shall be responsible and shall utilize
state employees for security and public information services in state-owned buildings and
state leased-to-own buildings in the Capitol area, as described in section 15B.02;. It shall
provide such personnel as are required by the circumstances to insure the orderly conduct
of state business and the convenience of the public.

(b) As part of the division permanent staff, the director must establish the position of
emergency manager that includes, at a minimum, the following duties:

(1) oversight of the consolidation, development, and maintenance of plans and
procedures that provide continuity of security operations;

(2) the development and implementation of tenant training that addresses threats
and emergency procedures; and

(3) the development and implementation of threat and emergency exercises.

(c) The director must provide a minimum of one state trooper assigned to the Capitol
complex at all times.

(d) The director, in consultation with the advisory committee under section 299E.04,
shall, at least annually, hold a meeting or meetings to discuss, among other issues, Capitol
complex security, emergency planning, public safety, and public access to the Capitol
complex. The meetings must include, at a minimum:

(1) Capitol complex tenants and state employees;

(2) nongovernmental entities, such as lobbyists, vendors, and the media; and

(3) the public and public advocacy groups.

Sec. 13.

Minnesota Statutes 2012, section 299E.01, subdivision 3, is amended to read:

Subd. 3.

Powers and duties transferred.

All powers, duties and responsibilities
heretofore assigned by law to the commissioner of administration relating to the general
function of security in such Capitol complex state-owned buildings are hereby transferred
to the commissioner of public safety. The commissioner of public safety shall have
the final authority regarding public safety and security in the Capitol complex. The
commissioner of administration shall have the powers, duties, and responsibilities relating
to the Capitol complex state-owned buildings as provided under chapter 16B.

Sec. 14.

Minnesota Statutes 2012, section 398A.10, is amended by adding a
subdivision to read:

Subd. 4.

Definition.

For purposes of this section, "project" means the initial
construction 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 line is operational.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 15.

Laws 2009, chapter 9, section 1, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective the day following final enactment,
and expires on June 30, 2013 2016.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 16. CENTRAL CORRIDOR LIGHT RAIL TRANSIT; CENTRAL
STATION ACCESSIBILITY.

(a) For purposes of this section:

(1) "city" means the city of St. Paul;

(2) "council" has the meaning given in Minnesota Statutes, section 473.121,
subdivision 3; and

(3) "pedestrian skyway system" has the meaning given in Minnesota Statutes,
section 469.125, subdivision 4.

(b) Notwithstanding any law to the contrary, for the Central Station on the
Central Corridor light rail transit line, the council and city shall include construction or
establishment of access to a pedestrian skyway system as part of the initial transit line
construction project. The council and city shall ensure that public access to the pedestrian
skyway system is provided by an elevator located at the site of the station.

(c) The council and city shall meet the requirements under this section at the time of
initial construction of the Central Corridor light rail transit line and the Central Station.

EFFECTIVE DATE; APPLICATION.

As to the Metropolitan Council, this
section is effective the day following final enactment and applies in the counties of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. As to the city of St.
Paul, this section is effective the day after the city council of the city of St. Paul and its
chief clerical officer timely complete their compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3.

Sec. 17. BUS RAPID TRANSIT DEVELOPMENT AUTHORIZED.

Washington County Regional Rail Authority may exercise the powers conferred
by Minnesota Statutes, section 398A.04, to plan, establish, acquire, develop, construct,
purchase, enlarge, extend, improve, maintain, equip, operate, regulate, and protect a bus
rapid transit system located within Washington County on transitways included in and
approved by the Metropolitan Council's 2030 Transportation Policy Plan, including the
Rush Line, Highway 36, Gateway, and Red Rock transit corridors.

EFFECTIVE DATE.

Pursuant to Minnesota Statutes, section 645.023, subdivision
1, paragraph (a), this section is effective without local approval the day following final
enactment.

Sec. 18. MARKED INTERSTATE HIGHWAY 35E PROJECTS; TRAIL
MITIGATION.

(a) For purposes of this section, "35E corridor projects" means those projects for
construction or reconstruction of marked Interstate Highway 35E between downtown
St. Paul and the vicinity of marked Interstate Highway 694, that are under design,
engineering, or construction on the effective date of this act or within the subsequent three
years. The term includes but is not limited to the projects identified by the commissioner
of transportation as the Cayuga project and the MnPASS project.

(b) The commissioner of transportation shall include in the 35E corridor projects
the following components:

(1) creation of a continuous separated bicycle and pedestrian path within the
right-of-way of the projects, located on the east side of marked Interstate Highway 35E,
from Cayuga Street to Arlington Avenue;

(2) retention, at a minimum, of the same number of trail connector facilities designed
for exclusive use of bicyclists and pedestrians between the Gateway State Trail and the
east side of marked Interstate Highway 35E over the length of the 35E corridor projects;

(3) establishment of reasonable access points to the facilities identified in clauses (1)
and (2) over the length of the 35E corridor projects; and

(4) retention or reconstruction of any portion of the Gateway State Trail impacted by
the 35E corridor projects.

(c) In implementing the requirements under this section, the commissioner shall
conform with a bicycle master plan developed by the city of St. Paul.

Sec. 19. MARKED INTERSTATE HIGHWAY 35W PROJECT; NOISE
BARRIERS.

The commissioner of transportation may not include or approve inclusion of noise
barriers in the trunk highway project to add interchange access on marked Interstate
Highway 35W at 4th Street South and add an auxiliary lane in Minneapolis. As
appropriate, the commissioner shall program trunk highway funds made available as a
result of this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 20. MINNESOTA DEPARTMENT OF TRANSPORTATION DISTRICT 1
CONSTRUCTION PROJECTS.

(a) Notwithstanding any law to the contrary, the commissioner of transportation must
select either the M-1 or the E-2 layout, as identified in the alternatives analysis conducted
by the Department of Transportation, or variations of the M-1 or E-2 layouts, for the
project involving the relocation of marked U.S. Highway 53 between Eveleth and Virginia.

(b) Notwithstanding any law to the contrary, the commissioner of transportation
must select the South Route layout, as identified and selected in 2010 as the preferred
alternative, for the project involving marked U.S. Highway 169 between Tower and Ely.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 21. TRANSITWAY EXPANSION IMPLEMENTATION PLAN.

(a) For purposes of this section, "transitway" includes but is not limited to light rail
transit; commuter rail; bus rapid transit, whether arterial or highway; and streetcars.

(b) From funds appropriated by law for the purposes of this section, the Metropolitan
Council shall, in consultation with interested stakeholders, develop an implementation
plan for accelerated development of transitways in the metropolitan area.

(c) At a minimum, the plan must:

(1) address implementation management issues and identify roles, responsibilities,
and lead agencies for each component of the plan;

(2) create a program of transitway projects to develop and construct in a concurrent
manner under the plan;

(3) establish a timeline and preliminary schedule for coordinated and accelerated
project development of the transitways;

(4) establish a financial plan that includes but is not limited to:

(i) identification of capital and operating costs for each transitway;

(ii) allocation of cost shares; and

(iii) a proposal for fully funding the plan; and

(5) identify any legislative changes relevant to the plan.

(d) By January 15, 2014, the Metropolitan Council shall submit an electronic copy
of the implementation plan to the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation policy and finance, as provided under
Minnesota Statutes, section 3.195, subdivision 1.

Sec. 22. REPEALER.

(a) Minnesota Statutes 2012, section 161.04, subdivision 6, is repealed.

(b) Minnesota Statutes 2012, section 174.285, subdivision 8, is repealed.