HF 3265

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to transportation; defining road or highway; 
  1.3             requiring certain expenditures from the trunk highway 
  1.4             fund; establishing transportation spending goals; 
  1.5             creating a transportation trust fund; requiring 
  1.6             certain appropriations for the state patrol to be from 
  1.7             the general fund; dedicating vehicle registration tax 
  1.8             revenues and 20 percent of motor vehicle sales tax 
  1.9             revenues to a transportation trust fund; proposing an 
  1.10            amendment to the Minnesota Constitution, article XIV, 
  1.11            sections 5, 9, and by adding sections; amending 
  1.12            Minnesota Statutes 1996, sections 160.02, subdivision 
  1.13            7, and by adding a subdivision; 161.04, by adding a 
  1.14            subdivision; 168.053, subdivisions 1 and 2; 168.056; 
  1.15            168.181, subdivisions 1 and 2; 168.211; 168.221; 
  1.16            174.01, by adding a subdivision; 297B.09, subdivision 
  1.17            1; 299D.01, by adding a subdivision; and 299D.03, 
  1.18            subdivision 5; proposing coding for new law in 
  1.19            Minnesota Statutes, chapters 168; and 174; repealing 
  1.20            Minnesota Statutes 1996, sections 168.012, subdivision 
  1.21            12; 168.013, subdivision 8; 168.021, subdivision 4; 
  1.22            168.041, subdivision 11; 168.042, subdivision 15; 
  1.23            168.057; 168.091, subdivision 3; 168.123, subdivision 
  1.24            5; 168.128, subdivision 4; 168.1292, subdivision 4; 
  1.25            168.231; and 168.82, subdivision 2. 
  1.26  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.27                             ARTICLE 1 
  1.28                       TRANSPORTATION FINANCE 
  1.29     Section 1.  Minnesota Statutes 1996, section 160.02, 
  1.30  subdivision 7, is amended to read: 
  1.31     Subd. 7.  [ROAD OR HIGHWAY.] "Road" or "highway" means a 
  1.32  corridor used primarily for the transportation of persons or 
  1.33  goods and includes, unless otherwise specified, the several 
  1.34  kinds of highways as defined in this section, including roads 
  1.35  designated as minimum-maintenance roads, and also cartways, 
  2.1   together with all bridges or other structures thereon which form 
  2.2   a part of the same.  
  2.3      Sec. 2.  Minnesota Statutes 1996, section 160.02, is 
  2.4   amended by adding a subdivision to read: 
  2.5      Subd. 7a.  [HIGHWAY PURPOSE.] "Highway purpose" means a 
  2.6   purpose that is substantially related to the establishment, 
  2.7   preservation, construction, reconstruction, maintenance, or 
  2.8   administration of a road or highway. 
  2.9      Sec. 3.  Minnesota Statutes 1996, section 161.04, is 
  2.10  amended by adding a subdivision to read: 
  2.11     Subd. 4.  [EXPENDITURES FROM FUND.] (a) Not less than 60 
  2.12  percent of total expenditures in any fiscal year from the trunk 
  2.13  highway fund must be for the preservation, construction, and 
  2.14  reconstruction of trunk highways, including engineering and 
  2.15  right-of-way acquisition. 
  2.16     (b) No money may be spent from the trunk highway fund for 
  2.17  buildings or other capital improvements that primarily house 
  2.18  personnel, equipment, or offices of the department of 
  2.19  transportation. 
  2.20     Sec. 4.  [168.651] [DEPOSIT OF REVENUES.] 
  2.21     Except as otherwise provided by law, all revenues received 
  2.22  from taxes imposed under section 168.013, less any refunds 
  2.23  authorized by this chapter, and all fees collected by the 
  2.24  commissioner under this chapter not otherwise provided for, must 
  2.25  be deposited in the state treasury and credited to the Minnesota 
  2.26  transportation trust fund established under section 174.45. 
  2.27     Sec. 5.  Minnesota Statutes 1996, section 174.01, is 
  2.28  amended by adding a subdivision to read: 
  2.29     Subd. 3.  [TRANSPORTATION SPENDING GOALS.] The following 
  2.30  transportation spending goals are established: 
  2.31     (1) total spending per fiscal year from the trunk highway 
  2.32  fund for construction and reconstruction of state trunk 
  2.33  highways, not less than $500,000,000 by fiscal year 2002; 
  2.34     (2) total state spending per fiscal year on public transit 
  2.35  outside the seven-county metropolitan area, not less than 
  2.36  $15,000,000 for capital improvements and $17,000,000 for 
  3.1   operating assistance by fiscal year 1999; and 
  3.2      (3) total state spending per fiscal year on public transit 
  3.3   in the seven-county metropolitan area, not less than $32,000,000 
  3.4   for capital improvements and $60,000,000 for operating 
  3.5   assistance by fiscal year 1999.  
  3.6      Sec. 6.  [174.45] [MINNESOTA TRANSPORTATION TRUST FUND.] 
  3.7      Subdivision 1.  [FUND CREATED.] The Minnesota 
  3.8   transportation trust fund is created in the state treasury.  The 
  3.9   fund consists of money allocated to the fund under sections 
  3.10  168.651 and 297B.09 and all other money appropriated or credited 
  3.11  to the fund by law.  A county transportation account and a 
  3.12  municipal transportation account are created as accounts within 
  3.13  the fund. 
  3.14     Subd. 2.  [TRANSPORTATION ACCOUNTS.] (a) On the tenth day 
  3.15  of each month the commissioner of finance shall, from money in 
  3.16  the Minnesota transportation trust fund, credit to the county 
  3.17  transportation account an amount equal to 29 percent, and to the 
  3.18  municipal transportation account an amount equal to nine 
  3.19  percent, of total revenue in the previous month from taxes and 
  3.20  fees imposed under chapter 168, after deductions have been made 
  3.21  from that revenue for refunds, collection costs, state indirect 
  3.22  costs, reimbursements to other funds, and transfers to a 
  3.23  contingent account.  Money in the county and municipal 
  3.24  transportation accounts is appropriated to the commissioner. 
  3.25     Subd. 3.  [COUNTY TRANSPORTATION ACCOUNT ALLOCATIONS.] At 
  3.26  the same time the commissioner makes apportionments under 
  3.27  section 162.06, the commissioner shall distribute amounts in the 
  3.28  county transportation account to each county so that each county 
  3.29  receives the same percentage of money to be distributed as its 
  3.30  percentage for that year of county state-aid highway fund 
  3.31  allocations.  A county may spend money received under this 
  3.32  subdivision to match federal funds available to the county for 
  3.33  highway and transit purposes, and for any other highway or 
  3.34  transit purpose. 
  3.35     Subd. 4.  [MUNICIPAL TRANSPORTATION ACCOUNT.] At the same 
  3.36  time the commissioner makes apportionments under section 162.12, 
  4.1   the commissioner shall distribute money in the municipal 
  4.2   transportation account to each city eligible to receive an 
  4.3   allocation from the municipal state-aid street fund so that each 
  4.4   city receives the same percentage of money to be distributed as 
  4.5   its percentage for that year of municipal state-aid street fund 
  4.6   allocations.  A city may spend money received under this 
  4.7   subdivision to match federal funds available to the city for 
  4.8   highway and transit purposes, and for any other highway or 
  4.9   transit purpose. 
  4.10     Subd. 5.  [APPROPRIATIONS.] Not later than January 1 of 
  4.11  each odd-numbered year, the commissioner shall submit to the 
  4.12  legislature a list of recommended appropriations from the 
  4.13  anticipated balance in the fund for the next biennium after 
  4.14  amounts have been credited under subdivisions 2 and 3.  The list 
  4.15  must be based on the most recent state transportation plan and 
  4.16  statewide transportation improvement program, and on the goals 
  4.17  established under section 174.01, subdivision 2.  The 
  4.18  recommendations must provide for allocating funds to the 
  4.19  commissioner, local road authorities, and other government and 
  4.20  private entities those amounts that the commissioner determines 
  4.21  are necessary to match available federal funds not matched under 
  4.22  subdivision 2 or 3, to the extent that the anticipated balance 
  4.23  in the fund permits, for (1) highway construction, 
  4.24  reconstruction, improvement, and maintenance, (2) acquisition of 
  4.25  public transit vehicles, (3) public transit capital 
  4.26  improvements, (4) transportation enhancements, and (5) other 
  4.27  transportation expenditures that are required to be included in 
  4.28  a statewide transportation improvement program in order to be 
  4.29  eligible for federal participation. 
  4.30     Subd. 6.  [ALLOCATION OF BALANCE.] Any money remaining in 
  4.31  the Minnesota transportation trust fund at the end of a fiscal 
  4.32  year after amounts have been credited under subdivision 2 and 
  4.33  appropriations made under subdivision 4 must be credited 62 
  4.34  percent to the trunk highway fund, 29 percent to the county 
  4.35  state-aid highway fund, and nine percent to the municipal 
  4.36  state-aid street fund. 
  5.1      Sec. 7.  Minnesota Statutes 1996, section 297B.09, 
  5.2   subdivision 1, is amended to read: 
  5.3      Subdivision 1.  [GENERAL FUND SHARE.] (a) Money collected 
  5.4   and received under this chapter must be deposited in the state 
  5.5   treasury and credited to the general fund.  The amounts 
  5.6   collected and received shall be credited as provided in this 
  5.7   subdivision, and transferred from the general fund on July 15 
  5.8   and February 15 of each fiscal year.  The commissioner of 
  5.9   finance must make each transfer based upon the actual receipts 
  5.10  of the preceding six calendar months and include the interest 
  5.11  earned during that six-month period.  The commissioner of 
  5.12  finance may establish a quarterly or other schedule providing 
  5.13  for more frequent payments to the transit assistance fund if the 
  5.14  commissioner determines it is necessary or desirable to provide 
  5.15  for the cash flow needs of the recipients of money from the 
  5.16  transit assistance fund.  
  5.17     (b) Twenty-five percent of the money collected and received 
  5.18  under this chapter after June 30, 1990, and before July 1, 1991, 
  5.19  must be transferred to the highway user tax distribution fund 
  5.20  and the transit assistance fund for apportionment as follows:  
  5.21  75 percent must be transferred to the highway user tax 
  5.22  distribution fund for apportionment in the same manner and for 
  5.23  the same purposes as other money in that fund, and the remaining 
  5.24  25 percent of the money must be transferred to the transit 
  5.25  assistance fund to be appropriated to the commissioner of 
  5.26  transportation for transit assistance within the state and to 
  5.27  the metropolitan council.  
  5.28     (c) The distributions under this subdivision to the highway 
  5.29  user tax distribution fund until June 30, 1991, and to the trunk 
  5.30  highway fund thereafter, must be reduced by the amount necessary 
  5.31  to fund the appropriation under section 41A.09, subdivision 1.  
  5.32  For the fiscal years ending June 30, 1988, and June 30, 1989, 
  5.33  the commissioner of finance, before making the transfers 
  5.34  required on July 15 and January 15 of each year, shall estimate 
  5.35  the amount required to fund the appropriation under section 
  5.36  41A.09, subdivision 1, for the six-month period for which the 
  6.1   transfer is being made.  The commissioner shall then reduce the 
  6.2   amount transferred to the highway user tax distribution fund by 
  6.3   the amount of that estimate.  The commissioner shall reduce the 
  6.4   estimate for any six-month period by the amount by which the 
  6.5   estimate for the previous six-month period exceeded the amount 
  6.6   needed to fund the appropriation under section 41A.09, 
  6.7   subdivision 1, for that previous six-month period.  If at any 
  6.8   time during a six-month period in those fiscal years the amount 
  6.9   of reduction in the transfer to the highway user tax 
  6.10  distribution fund is insufficient to fund the appropriation 
  6.11  under section 41A.09, subdivision 1, for that period, the 
  6.12  commissioner shall transfer to the general fund from the highway 
  6.13  user tax distribution fund an additional amount sufficient to 
  6.14  fund the appropriation for that period, but the additional 
  6.15  amount so transferred to the general fund in a six-month period 
  6.16  may not exceed the amount transferred to the highway user tax 
  6.17  distribution fund for that six-month period as follows: 
  6.18     (1) 20 percent to the Minnesota transportation trust fund 
  6.19  established under section 174.45; and 
  6.20     (2) the remainder to the general fund. 
  6.21     Sec. 8.  Minnesota Statutes 1996, section 299D.01, is 
  6.22  amended by adding a subdivision to read: 
  6.23     Subd. 9.  [APPROPRIATIONS.] Appropriations for the 
  6.24  operations of the state patrol, other than commercial motor 
  6.25  vehicle inspection and enforcement activities, must be from the 
  6.26  general fund. 
  6.27     Sec. 9.  Minnesota Statutes 1996, section 299D.03, 
  6.28  subdivision 5, is amended to read: 
  6.29     Subd. 5.  [FINES AND FORFEITED BAIL MONEY.] (a) All fines 
  6.30  and forfeited bail money, from traffic and motor vehicle law 
  6.31  violations, collected from persons apprehended or arrested by 
  6.32  officers of the state patrol, shall be paid by the person or 
  6.33  officer collecting the fines, forfeited bail money or 
  6.34  installments thereof, on or before the tenth day after the last 
  6.35  day of the month in which these moneys were collected, to the 
  6.36  county treasurer of the county where the violation occurred.  
  7.1   Three-eighths of these receipts shall be credited to the general 
  7.2   revenue fund of the county.  The other five-eighths of these 
  7.3   receipts shall be transmitted by that officer to the state 
  7.4   treasurer and shall be credited as follows: 
  7.5      (1) In the fiscal year ending June 30, 1991, the first 
  7.6   $275,000 in money received by the state treasurer after June 4, 
  7.7   1991, must be credited to the transportation services fund, and 
  7.8   the remainder in the fiscal year credited to the trunk highway 
  7.9   fund. 
  7.10     (2) In fiscal year 1992, the first $215,000 in money 
  7.11  received by the state treasurer in the fiscal year must be 
  7.12  credited to the transportation services fund, and the remainder 
  7.13  credited to the trunk highway fund. 
  7.14     (3) In fiscal years 1993 and subsequent years, the entire 
  7.15  amount received by the state treasurer must be credited to the 
  7.16  trunk highway to the general fund.  If, however, the violation 
  7.17  occurs within a municipality and the city attorney prosecutes 
  7.18  the offense, and a plea of not guilty is entered, one-third of 
  7.19  the receipts shall be credited to the general revenue fund of 
  7.20  the county, one-third of the receipts shall be paid to the 
  7.21  municipality prosecuting the offense, and one-third shall be 
  7.22  transmitted to the state treasurer as provided in this 
  7.23  subdivision.  All costs of participation in a nationwide police 
  7.24  communication system chargeable to the state of Minnesota shall 
  7.25  be paid from appropriations for that purpose. 
  7.26     (b) Notwithstanding any other provisions of law, all fines 
  7.27  and forfeited bail money from violations of statutes governing 
  7.28  the maximum weight of motor vehicles, collected from persons 
  7.29  apprehended or arrested by employees of the state of Minnesota, 
  7.30  by means of stationary or portable scales operated by these 
  7.31  employees, shall be paid by the person or officer collecting the 
  7.32  fines or forfeited bail money, on or before the tenth day after 
  7.33  the last day of the month in which the collections were made, to 
  7.34  the county treasurer of the county where the violation 
  7.35  occurred.  Five-eighths of these receipts shall be transmitted 
  7.36  by that officer to the state treasurer and shall be credited to 
  8.1   the highway user tax distribution fund.  Three-eighths of these 
  8.2   receipts shall be credited to the general revenue fund of the 
  8.3   county.  
  8.4      Sec. 10.  [CONSTITUTIONAL AMENDMENT PROPOSED.] 
  8.5      An amendment is proposed to the Minnesota Constitution, 
  8.6   article XIV, sections 5, 9, and by adding sections.  
  8.7      If the amendment is adopted, article XIV, section 5, will 
  8.8   read: 
  8.9      Sec. 5.  There is hereby created a highway user tax 
  8.10  distribution fund to be used solely for highway purposes as 
  8.11  specified in this article.  The fund consists of the proceeds of 
  8.12  any taxes authorized by sections 9 and section 10 of this 
  8.13  article.  The net proceeds of the taxes shall be apportioned:  
  8.14  62 percent to the trunk highway fund; 29 percent to the county 
  8.15  state-aid highway fund; nine percent to the municipal state-aid 
  8.16  street fund.  Five percent of the net proceeds of the highway 
  8.17  user tax distribution fund may be set aside and apportioned by 
  8.18  law to one or more of the three foregoing funds.  The balance of 
  8.19  the highway user tax distribution fund shall be transferred to 
  8.20  the trunk highway fund, the county state-aid highway fund, and 
  8.21  the municipal state-aid street fund in accordance with the 
  8.22  percentages set forth in this section.  No change in the 
  8.23  apportionment of the five percent may be made within six years 
  8.24  of the last previous change. 
  8.25     article XIV, section 9, will read: 
  8.26     Sec. 9.  The legislature by law may tax motor vehicles 
  8.27  using the public streets and highways on a more onerous basis 
  8.28  than other personal property.  Any such tax on motor vehicles 
  8.29  shall be in lieu of all other taxes thereon, except wheelage 
  8.30  taxes imposed by political subdivisions solely for highway 
  8.31  purposes.  The legislature may impose this tax on motor vehicles 
  8.32  of companies paying taxes under the gross earnings system of 
  8.33  taxation notwithstanding that earnings from the vehicles may be 
  8.34  included in the earnings on which gross earnings taxes are 
  8.35  computed.  The proceeds of the tax shall be paid into the 
  8.36  highway user tax distribution fund created in section 12.  The 
  9.1   law may exempt from taxation any motor vehicle owned by a 
  9.2   nonresident of the state properly licensed in another state and 
  9.3   transiently or temporarily using the streets and highways of the 
  9.4   state. 
  9.5      article XIV, section 12, will read: 
  9.6      Sec. 12.  A Minnesota transportation trust fund is created 
  9.7   to be used exclusively for highway and transit purposes as 
  9.8   defined by law.  The fund consists of money paid into it under 
  9.9   section 9 and other money as provided by law.  The commissioner 
  9.10  of transportation or its successor agency shall recommend to the 
  9.11  legislature appropriations from the fund for highway and transit 
  9.12  purposes for each legislative budget period. 
  9.13     and article XIV, section 13, will read: 
  9.14     Sec. 13.  Not less than 20 percent of the proceeds from a 
  9.15  tax levied on the purchase price of new and used motor vehicles 
  9.16  must be allocated by law to the Minnesota transportation trust 
  9.17  fund established in section 12. 
  9.18     Sec. 11.  [SUBMISSION TO VOTERS.] 
  9.19     The constitutional amendment shall be submitted to the 
  9.20  people at the 1998 general election.  The question submitted 
  9.21  must be: 
  9.22     "Shall the Minnesota Constitution be amended to dedicate 
  9.23  (1) the proceeds from state registration taxes on motor 
  9.24  vehicles, and (2) not less than 20 percent of the proceeds from 
  9.25  a sales tax on new and used motor vehicles, to a Minnesota 
  9.26  transportation trust fund dedicated exclusively to highway and 
  9.27  transit purposes as defined by law? 
  9.28                                     Yes .......
  9.29                                     No ........"
  9.30     Sec. 12.  [REPEALER.] 
  9.31     Minnesota Statutes 1996, sections 168.012, subdivision 12; 
  9.32  168.013, subdivision 8; 168.021, subdivision 4; 168.041, 
  9.33  subdivision 11; 168.042, subdivision 15; 168.057; 168.091, 
  9.34  subdivision 3; 168.123, subdivision 5; 168.128, subdivision 4; 
  9.35  168.1292, subdivision 4; 168.231; and 168.82, subdivision 2, are 
  9.36  repealed. 
 10.1      Sec. 13.  [INSTRUCTION TO REVISOR.] 
 10.2      The revisor of statutes shall, in the next and subsequent 
 10.3   editions of Minnesota Statutes, change the term "highway user 
 10.4   tax distribution fund" to "Minnesota transportation trust fund" 
 10.5   in sections 168.017, subdivision 5; 168.091, subdivision 3; 
 10.6   168.10, subdivision 1i; 168.12, subdivisions 2, 2a, 2b, 2c, 2d, 
 10.7   2e, and 5; 168.127, subdivision 6; 168.129, subdivision 5; 
 10.8   168.1296, subdivision 5; 168.15, subdivision 3; 168.29; 168.33, 
 10.9   subdivision 7; 168.381; 168.62, subdivision 3; and 168.63, 
 10.10  subdivision 5. 
 10.11     Sec. 14.  [EFFECTIVE DATE.] 
 10.12     (a) Sections 1 and 2 are effective the day following final 
 10.13  enactment. 
 10.14     (b) Sections 3 and 5 are effective July 1, 1998. 
 10.15     (c) Sections 4, 6, 7, 8, 9, 12, and 13 are effective July 
 10.16  1, 1999. 
 10.17     (d) If the constitutional amendment proposed in section 10 
 10.18  is not adopted at the 1998 general election, sections 4, 6, 7, 
 10.19  8, 9, 12, and 13 shall not take effect. 
 10.20                             ARTICLE 2 
 10.21                       CONFORMING AMENDMENTS 
 10.22     Section 1.  Minnesota Statutes 1996, section 168.053, 
 10.23  subdivision 1, is amended to read: 
 10.24     Subdivision 1.  [APPLICATION; FEE; PENALTY.] Any person, 
 10.25  firm, or corporation engaged in the business of transporting 
 10.26  motor vehicles owned by another, by delivering, by drive-away or 
 10.27  towing methods, either singly or by means of the full mount 
 10.28  method, the saddle mount method, the tow bar method, or any 
 10.29  other combination thereof, and under their own power, vehicles 
 10.30  over the highways of the state from the manufacturer or any 
 10.31  other point of origin, to any point of destination, within or 
 10.32  without the state, shall make application to the registrar for a 
 10.33  drive-away in transit license.  This application for annual 
 10.34  license shall be accompanied by a registration fee of $250 and 
 10.35  contain such information as the registrar may require.  Upon the 
 10.36  filing of the application and the payment of the fee, the 
 11.1   registrar shall issue to each drive-away operator a drive-away 
 11.2   in transit license plate, which must be carried and displayed on 
 11.3   the power unit consistent with section 169.79 and the plate 
 11.4   shall remain on the vehicle while being operated within the 
 11.5   state.  Additional drive-away in transit license plates desired 
 11.6   by any drive-away operator may be secured from the registrar of 
 11.7   motor vehicles upon the payment of a fee of $5 for each set of 
 11.8   additional license plates.  Any person, firm, or corporation 
 11.9   engaging in the business as a drive-away operator, of 
 11.10  transporting and delivering by means of full mount method, the 
 11.11  saddle mount method, the tow bar method, or any combination 
 11.12  thereof, and under their own power, motor vehicles, who fails or 
 11.13  refuses to file or cause to be filed an application, as is 
 11.14  required by law, and to pay the fees therefor as the law 
 11.15  requires, shall be found guilty of violating the provisions of 
 11.16  sections 168.053 to 168.057 168.056; and, upon conviction, fined 
 11.17  not less than $50, and not more than $100, and all costs of 
 11.18  court.  Each day so operating without securing the license and 
 11.19  plates as required therein shall constitute a separate offense 
 11.20  within the meaning thereof. 
 11.21     Sec. 2.  Minnesota Statutes 1996, section 168.053, 
 11.22  subdivision 2, is amended to read: 
 11.23     Subd. 2.  Notwithstanding any provisions of subdivision 1 
 11.24  inconsistent herewith the provisions of sections 168.053 to 
 11.25  168.057 168.056 shall also apply to the delivery of new travel 
 11.26  trailers, park trailers, manufactured homes, sectional 
 11.27  buildings, and semitrailers by towing methods whether or not the 
 11.28  power unit is a part of the combination being delivered.  
 11.29     Sec. 3.  Minnesota Statutes 1996, section 168.056, is 
 11.30  amended to read: 
 11.31     168.056 [VIOLATION A MISDEMEANOR.] 
 11.32     Any person violating the provisions of sections 168.053 to 
 11.33  168.055 shall be guilty of a misdemeanor.  The provisions of 
 11.34  sections 168.053 to 168.057 168.056 shall not apply where such 
 11.35  vehicle is being towed as a temporary movement for the purpose 
 11.36  of making repairs, or for the purpose of pulling or towing such 
 12.1   vehicle from one point to another point for the purpose of 
 12.2   making repairs, or on repossessed cars being towed by an agent 
 12.3   or employee of any person or bona fide finance company in the 
 12.4   state where such towing is incidental to the repossession of 
 12.5   such vehicle.  
 12.6      Sec. 4.  Minnesota Statutes 1996, section 168.181, 
 12.7   subdivision 1, is amended to read: 
 12.8      Subdivision 1.  Notwithstanding any provision of law to the 
 12.9   contrary or inconsistent herewith, the registrar of motor 
 12.10  vehicles with the approval of the attorney general is hereby 
 12.11  empowered to make agreements with the duly authorized 
 12.12  representatives of the other states, District of Columbia, 
 12.13  territories and possessions of the United States, or 
 12.14  arrangements with foreign countries or provinces exempting the 
 12.15  residents of such other states, districts, territories and 
 12.16  possessions, and foreign countries or provinces using the public 
 12.17  streets and highways of this state from the payment of any or 
 12.18  all motor vehicle taxes or fees imposed by this chapter, subject 
 12.19  to the following conditions and limitations: 
 12.20     (1) Upon condition that the exemption provided herein shall 
 12.21  be operative as to a motor vehicle owned by a nonresident only 
 12.22  to the extent that under the laws of the state, district, 
 12.23  territory or possession, or foreign country or province of 
 12.24  residence like exemptions are granted to motor vehicles 
 12.25  registered under the laws and owned by residents of Minnesota. 
 12.26     (2) Upon condition that any such motor vehicle so operated 
 12.27  in this state by any such nonresident shall at all times carry 
 12.28  and display all license number plates or like insignia required 
 12.29  by the laws of the state, district, territory or possession, or 
 12.30  foreign country or province of residence. 
 12.31     (3) Upon condition that the exemptions provided herein 
 12.32  shall not apply to a passenger automobile or travel trailer 
 12.33  owned by a resident of any state, district, territory or 
 12.34  possession, or foreign country or province temporarily residing 
 12.35  in this state while gainfully employed on the same job for a 
 12.36  period of six months or more. 
 13.1      (4) Upon condition that the exemptions provided herein 
 13.2   shall not apply to motor vehicles owned by nonresidents 
 13.3   including any foreign corporation and used for carrying on 
 13.4   intrastate commerce within this state.  Such nonresident or 
 13.5   foreign corporation shall be required to register each such 
 13.6   vehicle and pay the same tax and penalties if any therefor as is 
 13.7   required with reference to like vehicles owned by residents of 
 13.8   Minnesota. 
 13.9      (5) Upon condition that the exemption provided herein shall 
 13.10  not apply to a truck, tractor, truck-tractor, or semitrailer, 
 13.11  except two-wheeled trailers of less than 3,000 pounds carrying 
 13.12  capacity; if 
 13.13     (a) The class of its registration does not permit to it a 
 13.14  statewide operation in the state of its registration, or if 
 13.15     (b) The registration fee or tax for which it is registered 
 13.16  is computed on a mileage basis, or if 
 13.17     (c) Its gross weight exceeds the gross weight for which it 
 13.18  is registered in the state, district, territory or possession, 
 13.19  or foreign country or province of its registration. 
 13.20     (6) Upon condition that nonresident owners of commercial 
 13.21  vehicles, including trucks, truck-tractors, trailers, 
 13.22  semitrailers, and buses domiciled in a foreign state, district, 
 13.23  territory or possession, or foreign country or province, and 
 13.24  bringing such vehicles into the state of Minnesota for the 
 13.25  purpose of doing interstate business shall be required to comply 
 13.26  with all the laws and regulations as to payment of taxes 
 13.27  applicable to like vehicles owned by Minnesota residents unless 
 13.28  the state, district, territory or possession, or foreign country 
 13.29  or province grants full reciprocity privileges comparable to 
 13.30  that extended by sections 168.181 to 168.231 168.221.  In the 
 13.31  event a state, district, territory or possession, or foreign 
 13.32  country or province is not fully reciprocal as to taxes or fees 
 13.33  on commercial vehicles or buses operated in interstate commerce, 
 13.34  then in that event such owners of foreign commercial vehicles or 
 13.35  buses shall be required to pay a tax in an amount similar to the 
 13.36  tax of whatever character assessed by such other state, 
 14.1   district, territory or possession, or foreign country or 
 14.2   province against vehicles registered in Minnesota and operated 
 14.3   in interstate commerce in that state, district, territory or 
 14.4   possession, or foreign country or province.  It is further 
 14.5   provided that such owners of foreign commercial vehicles and 
 14.6   buses subject to registration under the provisions of this 
 14.7   paragraph shall make application for a permit in which shall be 
 14.8   set forth the conditions for operation of such vehicles in this 
 14.9   state. 
 14.10     Sec. 5.  Minnesota Statutes 1996, section 168.181, 
 14.11  subdivision 2, is amended to read: 
 14.12     Subd. 2.  Agreements made pursuant to this section may also 
 14.13  include exemption from taxes or fees on a vehicle owned by a 
 14.14  person, firm, or corporation licensed as a motor vehicle dealer 
 14.15  or motor vehicle manufacturer in another state or country when 
 14.16  such vehicle is operated displaying the dealer plates or 
 14.17  manufacturer plates issued to such dealer or manufacturer by the 
 14.18  jurisdiction of residence; provided, however, that such 
 14.19  operation is not for the purpose of soliciting the sale of 
 14.20  vehicles within this state other than at an auction conducted by 
 14.21  a motor vehicle auctioneer licensed under section 168.27.  
 14.22  Greater privileges shall not be granted to such dealer or 
 14.23  manufacturer than permitted by the laws of the jurisdiction of 
 14.24  residence.  Nothing contained herein shall be construed to apply 
 14.25  to or vary the terms and conditions of sections 168.053 to 
 14.26  168.057 168.056. 
 14.27     Sec. 6.  Minnesota Statutes 1996, section 168.211, is 
 14.28  amended to read: 
 14.29     168.211 [SUBJECTION TO STATE LAWS GENERALLY.] 
 14.30     All vehicles operated in Minnesota pursuant to sections 
 14.31  168.181 to 168.231 168.221 shall be subject to all provisions of 
 14.32  law applicable to vehicles owned or operated by Minnesota 
 14.33  residents except to the extent that exemption is provided from 
 14.34  said laws by such sections.  
 14.35     Sec. 7.  Minnesota Statutes 1996, section 168.221, is 
 14.36  amended to read: 
 15.1      168.221 [COMMERCIAL VEHICLES; TAXES OR FEES.] 
 15.2      The registrar may promulgate such rules as may be necessary 
 15.3   to accomplish the purpose of section 168.181, paragraph 6, as to 
 15.4   the payment of partial taxes collectible under sections 168.181 
 15.5   to 168.231 168.221 and may waive any reciprocal agreement 
 15.6   required thereunder with any state, district, territory, or 
 15.7   possession or arrangements with foreign countries or provinces 
 15.8   if under the laws of such state, district, territory, or 
 15.9   possession or foreign country or province residents of Minnesota 
 15.10  are privileged to operate motor vehicles upon the streets and 
 15.11  highways of such state, district, territory, or possession or 
 15.12  foreign country or province without the payment of taxes or fees 
 15.13  of any character whatsoever. 
 15.14     Sec. 8.  [EFFECTIVE DATE.] 
 15.15     Sections 1 to 7 are effective July 1, 1999.  If the 
 15.16  constitutional amendment proposed in article 1, section 10, is 
 15.17  not adopted, then sections 1 to 7 shall not take effect.