HF 3761

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; authorizing sale of trunk highway bonds for capital
improvements related to transportation; establishing transit fund and accounts;
increasing motor fuel taxes; providing for treatment and allocation of tax
proceeds related to motor vehicles; modifying proposed amendment to
Minnesota Constitution and its proposed ballot question; modifying provisions
relating to the town bridge account, old automobile liens, tow truck operators,
impounded vehicles, the rail service improvement account, the tax attributable to
fuel used by all-terrain vehicles, and a connector highway agreement; requiring
a study; appropriating money; amending Minnesota Statutes 2004, sections
16A.88; 161.082, subdivision 2a; 168B.06, subdivision 1; 168B.07, by adding a
subdivision; 169.829, subdivision 2; 169.86, by adding a subdivision; 222.50,
subdivisions 6, 7; 296A.07, by adding a subdivision; 296A.18, subdivision 4;
297A.94; 297B.09, subdivision 1; Minnesota Statutes 2005 Supplement, sections
168A.20, subdivision 5; 297A.815, by adding a subdivision; Laws 2005, chapter
88, article 3, section 10; proposing coding for new law in Minnesota Statutes,
chapter 167.

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

ARTICLE 1

TRANSPORTATION FINANCE

Section 1. new text begin APPROPRIATIONS new text end

new text begin The sums shown in the column under "APPROPRIATIONS" are appropriated from
the general fund, or another named fund, to the state agencies or officials indicated, to be
spent for the purposes indicated, for fiscal year 2007. These appropriations are in addition
to those in Laws 2005, First Special Session chapter 6.
new text end

new text begin SUMMARY new text end
new text begin TRANSPORTATION new text end	new text begin $ new text end	new text begin 121,228,000 new text end
new text begin ADMINISTRATION new text end		new text begin 10,161,000 new text end
new text begin FINANCE new text end		new text begin 41,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 131,430,000 new text end

new text begin Summary by Fund new text end
new text begin Trunk Highway Bond Proceeds Account new text end	new text begin $ new text end	new text begin 43,430,000 new text end
new text begin Trunk Highway Fund new text end		new text begin 88,000,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 131,430,000 new text end

new text begin APPROPRIATIONS new text end

Sec. 2. new text begin TRANSPORTATION new text end

new text begin Subdivision 1. new text end new text begin To the commissioner of transportation for the purposes specified in this section: new text end

new text begin 121,228,000 new text end

new text begin Summary by Fund new text end
new text begin Trunk Highway Bond Proceeds Account new text end		new text begin 33,228,000 new text end
new text begin Trunk Highway Fund new text end		new text begin 88,000,000 new text end

new text begin Subd. 2. new text end new text begin Infrastructure investment support new text end

new text begin 5,000,000 new text end

new text begin This appropriation is from the trunk highway
fund for program delivery related to projects
identified in the federal High Priority Projects
Program, and is added to appropriations in
Laws 2005, First Special Session chapter
6, article 1, section 2. This is a onetime
appropriation.
new text end

new text begin Subd. 3. new text end new text begin State road construction new text end

new text begin 83,000,000 new text end

new text begin This appropriation is from the trunk highway
fund, and is added to appropriations in Laws
2005, First Special Session chapter 6, article
1, section 2, 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
payments to landowners for lands acquired
for highway rights-of-way, payments to
lessees, interest subsidies, and relocation
expenses. Of this amount, $50,000,000 may
only be used for projects identified in the
federal High Priority Projects Program. This
is a onetime appropriation.
new text end

new text begin Subd. 4. new text end new text begin Mankato headquarters new text end

new text begin 18,228,000 new text end

new text begin This appropriation is from the bond proceeds
account in the trunk highway fund to design,
construct, furnish, and equip a new district
headquarters facility in Mankato.
new text end

new text begin Subd. 5. new text end new text begin Trunk highway program delivery new text end

new text begin 15,000,000 new text end

new text begin This appropriation is from the bond proceeds
account in the trunk highway fund for
program delivery and for the cost of actual
payments to landowners for lands acquired
for highway rights-of-way, payments to
lessees, interest subsidies, and relocation
expenses.
new text end

Sec. 3. new text begin ADMINISTRATION new text end

new text begin Exterior renovation of transportation building new text end

new text begin 10,161,000 new text end

new text begin This appropriation is to the commissioner
of administration from the bond proceeds
account in the trunk highway fund to
renovate the exterior of the Department of
Transportation Building at 395 John Ireland
Boulevard in St. Paul.
new text end

Sec. 4. new text begin FINANCE new text end

new text begin Bond sale expenses new text end

new text begin 41,000 new text end

new text begin This appropriation is to the commissioner
of finance from the bond proceeds account
in the trunk highway fund for bond sale
expenses under Minnesota Statutes, section
16A.641, subdivision 8.
new text end

Sec. 5. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in this article from the bond proceeds account in
the trunk highway fund, the commissioner of finance shall sell and issue bonds of the state
in an amount up to $43,430,000 in the manner, on the terms, and with the effect prescribed
by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution,
article XIV, section 11, at the times and in the amounts requested by the commissioner
of transportation. The proceeds of the bonds, except accrued interest and any premium
received on the sale of the bonds, must be credited to the bond proceeds account in the
trunk highway fund.
new text end

Sec. 6.

Minnesota Statutes 2004, section 16A.88, is amended to read:

16A.88 TRANSIT deleted text begin FUNDS deleted text end new text begin FUND new text end .

Subdivision 1.

Greater Minnesota transit deleted text begin fund deleted text end new text begin account new text end .

The greater Minnesota
transit deleted text begin fund deleted text end new text begin account new text end is established within the deleted text begin state treasury deleted text end new text begin transit fund new text end . Money in the deleted text begin fund deleted text end new text begin
account new text end is annually appropriated to the commissioner of transportation for assistance to
transit systems outside the metropolitan area under section 174.24. deleted text begin Beginning in fiscal
year 2003, deleted text end The commissioner may use up to $400,000 each year for administration of the
transit program. The commissioner shall use the deleted text begin fund deleted text end new text begin account new text end for transit operations as
provided in section 174.24 and related program administration.

Subd. 2.

Metropolitan area transit deleted text begin fund deleted text end new text begin account new text end .

The metropolitan area transit
deleted text begin fund deleted text end new text begin account new text end is established within the deleted text begin state treasury deleted text end new text begin transit fund new text end . All money in the deleted text begin fund deleted text end new text begin
account new text end is annually appropriated to the Metropolitan Council for the funding of transit
systems within the metropolitan area under sections 473.384, 473.387, 473.388, and
473.405 to 473.449.

deleted text begin Subd. 3. deleted text end

deleted text begin Metropolitan area transit appropriation account. deleted text end

deleted text begin The metropolitan
area transit appropriation account is established within the general fund. Money in the
account is to be used for the funding of transit systems in the metropolitan area, subject to
legislative appropriation.
deleted text end

new text begin Subd. 4. new text end

new text begin Transit fund. new text end

new text begin A transit fund is established within the state treasury. The
fund receives money distributed under section 297B.09, and other money as specified by
law. Money in the fund must be allocated to the greater Minnesota transit account under
subdivision 1 and the metropolitan area transit account under subdivision 2, and must be
used for transit purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon adoption of the constitutional
amendment proposed in Laws 2005, chapter 88, article 3, section 9, by the people at
the 2006 general election.
new text end

Sec. 7.

Minnesota Statutes 2004, section 296A.07, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Tax rate increase. new text end

new text begin (a) The gasoline excise tax rate under subdivision 3,
clause (3), is increased by:
new text end

new text begin (1) 3.0 cents per gallon for sales made after June 30, 2006; and
new text end

new text begin (2) an additional 3.0 cents per gallon for sales made after June 30, 2007.
new text end

new text begin (b) All other excise tax rates in subdivision 3 and section 296A.08 are increased
proportionally to the tax rate increase under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with sales made after
June 30, 2006.
new text end

Sec. 8.

Minnesota Statutes 2005 Supplement, section 297A.815, is amended by adding
a subdivision to read:

new text begin Subd. 3. new text end

new text begin Deposit of revenues. new text end

new text begin Notwithstanding any law to the contrary, money
collected and received under this section must be deposited in the same manner and in the
same proportions as provided for revenues collected under chapter 297B.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with revenues collected
and remitted on and after July 1, 2007.
new text end

Sec. 9.

Minnesota Statutes 2004, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for
the construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment
was made for a loan guaranty for the project under section 41A.04, subdivision 3.

The commissioner of finance shall certify to the commissioner the date on which the
project received the conditional commitment. The amount deposited in the loan guaranty
account must be reduced by any refunds and by the costs incurred by the Department of
Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties,
derived from the taxes imposed on sales and purchases included in section 297A.61,
subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general
fund.

(d) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and
penalties, transmitted to the commissioner under section 297A.65, must be deposited by
the commissioner in the state treasury as follows:

(1) 50 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
may be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants; and

(5) two percent of the receipts must be deposited in the natural resources fund,
and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
Conservatory, and the Duluth Zoo.

(f) The revenue dedicated under paragraph (e) may not be used as a substitute
for traditional sources of funding for the purposes specified, but the dedicated revenue
shall supplement traditional sources of funding for those purposes. Land acquired with
money deposited in the game and fish fund under paragraph (e) must be open to public
hunting and fishing during the open season, except that in aquatic management areas or
on lands where angling easements have been acquired, fishing may be prohibited during
certain times of the year and hunting may be prohibited. At least 87 percent of the money
deposited in the game and fish fund for improvement, enhancement, or protection of fish
and wildlife resources under paragraph (e) must be allocated for field operations.

new text begin (g) The revenues, including interest and penalties, collected under section 297A.815
must be deposited by the commissioner as provided for in that section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with revenues collected
and remitted on and after July 1, 2007.
new text end

Sec. 10.

Laws 2005, chapter 88, article 3, section 10, is amended to read:

Sec. 10. SUBMISSION TO VOTERS.

The constitutional amendment proposed in section deleted text begin 12 deleted text end new text begin 9 new text end must be presented to the
people at the 2006 general election. The question submitted must be:

deleted text begin "Shall the Minnesota Constitution be amended to dedicate revenue from a tax on the
sale of new and used motor vehicles over a five-year period, so that after June 30, 2011, all
of the revenue is dedicated at least 40 percent for public transit assistance and not more
than 60 percent for highway purposes? deleted text end new text begin "Shall the Minnesota Constitution be amended so
that after June 30, 2011, all of the revenues from the existing tax on the sale of new and
used motor vehicles are dedicated to highways and public transit?
new text end

	Yes .......
	No ........"

new text begin EFFECTIVE DATE. new text end

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

Sec. 11. new text begin BALLOT PLACEMENT.
new text end

new text begin The secretary of state shall place as the first question on the ballot at the 2006
general election the constitutional amendment proposed in Laws 2005, chapter 88, article
3, section 10, as amended by this act.
new text end

Sec. 12. new text begin EFFECTIVE DATE.
new text end

new text begin Except as specifically provided otherwise, this article is effective July 1, 2006.
new text end

ARTICLE 2

TRUNK HIGHWAY BONDING

Section 1. new text begin APPROPRIATIONS new text end

new text begin The sums shown in the column under "APPROPRIATIONS" are appropriated from
the bond proceeds account in the trunk highway fund to the state agencies or officials
indicated, to be spent for the purposes indicated.
new text end

new text begin SUMMARY new text end
new text begin TRANSPORTATION new text end	new text begin $ new text end	new text begin 2,485,000,000 new text end
new text begin FINANCE new text end		new text begin 2,485,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 2,487,485,000 new text end

new text begin Summary by Fund new text end
new text begin Trunk Highway Bond Proceeds Account new text end		new text begin 2,487,485,000 new text end

new text begin APPROPRIATIONS new text end

Sec. 2. new text begin TRANSPORTATION new text end

new text begin Subdivision 1. new text end new text begin To the commissioner of transportation for the purposes specified in this section: new text end

new text begin 2,485,000,000 new text end

new text begin Subd. 2. new text end new text begin Trunk highway program delivery new text end

new text begin 35,000,000 new text end

new text begin This appropriation is from the bond proceeds
account in the trunk highway fund for
program delivery and for the cost of actual
payments to landowners for lands acquired
for highway rights-of-way, payments to
lessees, interest subsidies, and relocation
expenses.
new text end

new text begin Subd. 3. new text end new text begin Trunk highway construction new text end

new text begin 2,450,000,000 new text end

new text begin This appropriation is from the bond proceeds
account in the trunk highway fund for the
actual construction, reconstruction, and
improvement of trunk highways. This
includes the cost of actual payments to
landowners for lands acquired for highway
rights-of-way, payments to lessees, interest
subsidies, and relocation expenses. The
commissioner of transportation may use up
to $375,000,000 of this appropriation for
program delivery.
new text end

Sec. 3. new text begin FINANCE new text end
new text begin Bond sale expenses new text end						new text begin 2,485,000 new text end

new text begin This appropriation is to the commissioner
of finance from the bond proceeds account
in the trunk highway fund for bond sale
expenses under Minnesota Statutes, section
16A.641, subdivision 8, and section 167.50,
subdivision 4.
new text end

Sec. 4.

new text begin [167.515] MOTOR VEHICLE SALES TAX COLLECTION ACCOUNT.
new text end

new text begin The commissioner of finance shall maintain in the trunk highway fund a separate
account designated as the Minnesota motor vehicle sales tax collection account. Money in
the account consists of proceeds allocated to the account from the motor vehicles sales tax
under section 297B.09. Money from the account may be spent for debt service incurred
pursuant to section 2, subdivisions 2 and 3.
new text end

Sec. 5.

Minnesota Statutes 2004, section 297B.09, subdivision 1, is amended to read:

Subdivision 1.

Deposit of revenues.

(a) Money collected and received under this
chapter must be deposited as provided in this subdivision.

(b) deleted text begin From July 1, 2002, to June 30, 2003, 32 percent of the money collected and
received must be deposited in the highway user tax distribution fund, 20.5 percent must be
deposited in the metropolitan area transit fund under section 16A.88, and 1.25 percent
must be deposited in the greater Minnesota transit fund under section 16A.88. The
remaining money must be deposited in the general fund. deleted text end

deleted text begin (c) deleted text end From July 1, 2003, to June 30, 2007, 30 percent deleted text begin of the money collected and
received deleted text end must be deposited in the highway user tax distribution fund, 21.5 percent must be
deposited in the metropolitan area transit deleted text begin fund deleted text end new text begin account new text end under section 16A.88, 1.43 percent
must be deposited in the greater Minnesota transit deleted text begin fund deleted text end new text begin account new text end under section 16A.88,
0.65 percent must be deposited in the county state-aid highway fund, and 0.17 percent
must be deposited in the municipal state-aid street fund. The remaining money must
be deposited in the general fund.

deleted text begin (d) On and after deleted text end new text begin (c) From new text end July 1, 2007, deleted text begin 32 deleted text end new text begin to June 30, 2008, 38.25 new text end percent deleted text begin of the
money collected and received deleted text end must be deposited in the highway user tax distribution
fund, deleted text begin 20.5 percent must be deposited in the metropolitan area transit fund under section
16A.88, deleted text end and percent must be deposited in the deleted text begin greater Minnesota deleted text end transit fund
under section 16A.88. The remaining money must be deposited in the general fund. new text begin Of
the amount from this paragraph deposited in the trunk highway fund, 16.5 percent must be
deposited in the motor vehicle sales tax collection account established in section 167.515.
new text end

new text begin (d) From July 1, 2008, to June 30, 2009, 44.25 percent must be deposited in the
highway user tax distribution fund, and 29.5 percent must be deposited in the transit fund.
The remaining money must be deposited in the general fund. Of the amount from this
paragraph deposited in the trunk highway fund, 27.5 percent must be deposited in the
motor vehicle sales tax collection account established in section 167.515.
new text end

new text begin (e) From July 1, 2009, to June 30, 2010, 50.25 percent must be deposited in the
highway user tax distribution fund, and 33.5 percent must be deposited in the transit fund.
The remaining money must be deposited in the general fund. Of the amount from this
paragraph deposited in the trunk highway fund, 36.5 percent must be deposited in the
motor vehicle sales tax collection account established in section 167.515.
new text end

new text begin (f) From July 1, 2010, to June 30, 2011, 56.25 percent must be deposited in the
highway user tax distribution fund, and 37.5 percent must be deposited in the transit fund.
The remaining money must be deposited in the general fund. Of the amount from this
paragraph deposited in the trunk highway fund, 43 percent must be deposited in the motor
vehicle sales tax collection account established in section 167.515.
new text end

new text begin (g) On and after July 1, 2011, 60 percent must be deposited in the highway user tax
distribution fund, and 40 percent must be deposited in the transit fund. Of the amount
from this paragraph deposited in the trunk highway fund, 46.7 percent must be deposited
in the motor vehicle sales tax collection account established in section 167.515.
new text end

Sec. 6. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in this article from the bond proceeds account
in the trunk highway fund, the commissioner of finance shall sell and issue bonds of
the state in an amount up to $2,487,485,000 in the manner, on the terms, and with the
effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
Constitution, article XIV, section 11, at the times and in the amounts requested by the
commissioner of transportation. The proceeds of the bonds, except accrued interest and
any premium received on the sale of the bonds, must be credited to the bond proceeds
account in the trunk highway fund.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective upon adoption of the constitutional amendment proposed in
Laws 2005, chapter 88, article 3, section 9, by the people at the 2006 general election.
new text end

ARTICLE 3

TRANSPORTATION POLICY

Section 1.

Minnesota Statutes 2004, section 161.082, subdivision 2a, is amended to
read:

Subd. 2a.

Town bridges and culverts; town road account.

(a) Money in the
town bridge account must be expended on town road bridge structures that are ten feet
or more in length and on town road culverts that replace existing town road bridges. In
addition, if the present bridge structure is less than ten feet in length but a hydrological
survey indicates that the replacement bridge structure or culvert must be ten feet or more
in length, then the bridge or culvert is eligible for replacement funds.

(b) In addition, if a culvert that replaces a deficient bridge is in a county
comprehensive water plan approved by the Board of Water and Soil Resources and the
Department of Natural Resources, the costs of the culvert and roadway grading other than
surfacing are eligible for replacement funds up to the cost of constructing a replacement
bridge.

(c) The expenditures on a bridge structure or culvert may be paid from the county
turnback account and may be for 100 percent of the cost of the replacement structure or
culvert or for 100 percent of the cost of rehabilitating the existing structure.

(d) The town bridge account may be used to pay the costs to abandon an existing
bridge that is deficient and in need of replacement, but where no replacement will be
made. It may also be used to pay the costs to construct a road or street to facilitate the
abandonment of an existing bridge determined by the commissioner to be deficient, if the
commissioner determines that construction of the road or street is more cost efficient
than replacing the existing bridge.

(e) When bridge approach construction work exceeds $10,000 in costs, or when
the county engineer determines that the cost of the replacement culverts alone will not
exceed $20,000, or engineering costs exceed $10,000, the town shall be eligible for
financial assistance from the town bridge account. Financial assistance shall be requested
by resolution of the county board and shall be limited to:

(1) 100 percent of the cost of the bridge approach work that is in excess of $10,000;

(2) 100 percent of the cost of the replacement culverts when the cost does not
exceed $20,000 and the town board agrees to be responsible for all the other costs, which
may include costs for structural removal, installation, and permitting. The replacement
structure design and costs shall be approved and certified by the county engineer, but need
not be subsequently approved by the Department of Transportation; or

(3) 100 percent of all related engineering costs that exceed $10,000, or in the case
of towns with a net tax capacity of less than deleted text begin $200,000 deleted text end new text begin $300,000 new text end , 100 percent of the
engineering costs.

(f) Money in the town road account must be distributed as provided in section
162.081.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006.
new text end

Sec. 2.

Minnesota Statutes 2005 Supplement, section 168A.20, subdivision 5, is
amended to read:

Subd. 5.

Satisfaction of automobile lien seven years old; release.

deleted text begin (a) deleted text end A security
interest perfected under this chapter deleted text begin expires deleted text end new text begin may be canceled new text end seven years from the
perfection date for a passenger automobile, as defined in section 168.011, subdivision
7 new text begin , upon the request of the owner of the passenger automobile, if the owner has paid the
lien in full and is unable to locate the lienholder to obtain a lien release. At a minimum,
the owner must send a letter to the lienholder by certified mail, return receipt requested,
requesting a lien release. If the owner is unable to obtain a lien release by sending a
letter by certified mail, then the owner must present to the department or its agent the
returned letter as evidence of the attempted contact. This subdivision applies only to
vehicle owners who are individuals new text end .

deleted text begin (b) A lien holder may notify the department in writing or in a format approved by
the department during the sixth year of the lien, no later than 90 days in advance of the
seven-year anniversary, if the lien will not be satisfied during this registration period and
the lien must be extended up to seven additional years as requested by the lien holder.
deleted text end

Sec. 3.

Minnesota Statutes 2004, section 168B.06, subdivision 1, is amended to read:

Subdivision 1.

Contents; notice given within five days.

When an impounded
vehicle is taken into custody, the unit of government or impound lot operator taking it
into custody shall give notice new text begin to the registered vehicle owner and any lienholders new text end of the
taking within five days. The notice shall new text begin :
new text end

deleted text begin (a) deleted text end new text begin (1) new text end set forth the date and place of the taking, the year, make, model and serial
number of the impounded motor vehicle if such information can be reasonably obtained
and the place where the vehicle is being held deleted text begin , deleted text end new text begin ; new text end

deleted text begin (b) deleted text end new text begin (2) new text end inform the new text begin registered vehicle new text end owner and any lienholders of their right to
reclaim the vehicle under section 168B.07 deleted text begin , and deleted text end new text begin ; new text end

deleted text begin (c) deleted text end new text begin (3) new text end state that failure of the owner or lienholders to exercise their right to reclaim
the vehicle deleted text begin and contents deleted text end within the appropriate time allowed under section 168B.051,
subdivision 1, 1a, or 2, shall be deemed a waiver by them of all right, title, and interest in
the vehicle and new text begin remaining new text end contents and a consent to the transfer of title to and disposal or
sale of the vehicle and new text begin remaining new text end contents pursuant to section 168B.08 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) state: "You, the registered owner, have the right to pick up your contents from
your vehicle, whether or not you give up the right to reclaim your vehicle."
new text end

Sec. 4.

Minnesota Statutes 2004, section 168B.07, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Retrieval of contents. new text end

new text begin A unit of government or impound lot operator
may establish a reasonable procedure for retrieval of vehicle contents. At any time
before the expiration of the waiting periods provided in section 168B.051, subdivision
1, 1a, or 2, the owner of an impounded vehicle has the right to retrieve, without charge,
any and all contents. For the purposes of this subdivision, "contents" means all personal
belongings and does not include any permanently affixed mechanical or nonmechanical:
(i) automobile parts; (ii) automobile body parts; or (iii) automobile accessories, including
audio or video players.
new text end

Sec. 5.

Minnesota Statutes 2004, section 169.829, subdivision 2, is amended to read:

Subd. 2.

Tow truck.

Sections 169.822 to 169.828 do not apply to a tow truck or
towing vehicle when towing a disabled new text begin or damaged new text end vehicle deleted text begin damaged in such manner that
the towed vehicle cannot be towed from the rear and deleted text end new text begin , new text end when the movement is deleted text begin temporary deleted text end new text begin
urgent, and when the movement is new text end for the purpose of deleted text begin taking deleted text end new text begin removing new text end the disabled vehicle
new text begin from the roadway new text end to a new text begin place of safekeeping or to a new text end place of repair.

Sec. 6.

Minnesota Statutes 2004, section 169.86, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Tow truck. new text end

new text begin A tow truck or towing vehicle, when towing a disabled or
damaged vehicle to a place of repair or to a place of safekeeping, may exceed the length
and weight limitations of this chapter, subject to a $300 annual permit fee and such
conditions as the commissioner may prescribe.
new text end

Sec. 7.

Minnesota Statutes 2004, section 222.50, subdivision 6, is amended to read:

Subd. 6.

Grants.

new text begin (a) new text end The commissioner may approve grants from the rail service
improvement account for payment of up to deleted text begin 50 deleted text end new text begin 40 new text end percent deleted text begin of the nonfederal share deleted text end of the
cost of any rail line project deleted text begin under the federal rail service continuation program. deleted text end new text begin on a rail
line owned by a private railroad, and up to 60 percent of the cost of any rail line project on
a rail line owned by a political subdivision. At least 20 percent of the cost of any rail line
project is the direct responsibility of the grantee and may not be paid from other state or
federal sources. The remaining portion of the cost of a rail line project receiving a grant
under this subdivision may be financed as provided under subdivision 7.
new text end

new text begin (b) No more than 50 percent of the annual expenditures from the rail service
improvement account may be in the form of grants made under this subdivision.
new text end

Sec. 8.

Minnesota Statutes 2004, section 222.50, subdivision 7, is amended to read:

Subd. 7.

Expenditures.

(a) The commissioner may expend money from the rail
service improvement account for the following purposes:

(1) to make transfers as provided under section 222.57 or to pay interest adjustments
on loans guaranteed under the state rail user and rail carrier loan guarantee program;

(2) to pay a portion of the costs of capital improvement projects designed to improve
rail service including construction or improvement of short segments of rail line such
as side track, team track and connections between existing lines, and construction and
improvement of loading, unloading, storage and transfer facilities of a rail user;

(3) to acquire, maintain, manage and dispose of railroad right-of-way pursuant to the
state rail bank program;

(4) to provide for aerial photography survey of proposed and abandoned railroad
tracks for the purpose of recording and reestablishing by analytical triangulation the
existing alignment of the inplace track;

(5) to pay a portion of the costs of acquiring new text begin or rehabilitating new text end a rail line by a regional
railroad authority established pursuant to chapter 398A;

(6) to pay the state matching portion of federal grants for rail-highway grade
crossing improvement projects.

(b) All money derived by the commissioner from the disposition of railroad
right-of-way or of any other property acquired pursuant to sections 222.46 to 222.62 shall
be deposited in the rail service improvement account.

Sec. 9.

Minnesota Statutes 2004, section 296A.18, subdivision 4, is amended to read:

Subd. 4.

All-terrain vehicle.

Approximately deleted text begin 0.15 deleted text end new text begin 0.27 new text end of one percent of all gasoline
received in or produced or brought into this state, except gasoline used for aviation
purposes, is being used for the operation of all-terrain vehicles in this state, and of the total
revenue derived from the imposition of the gasoline fuel tax, deleted text begin 0.15 deleted text end new text begin 0.27 new text end of one percent is
the amount of tax on fuel used in all-terrain vehicles operated in this state.

Sec. 10. new text begin TRUNK HIGHWAY 60 CONSTRUCTION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 161.261, or any other law, the
commissioner of transportation may enter into an agreement with an adjoining state
to construct a connector highway with a length not to exceed four miles, and to erect
detour signs at appropriate locations, for the construction of marked Trunk Highway 60
to include the Bigelow Bypass.
new text end

Sec. 11. new text begin STUDY OF TRANSPORTATION LONG-RANGE SOLUTIONS.
new text end

new text begin (a) The commissioner of transportation shall conduct a study to evaluate the current
and long-range needs of the state's transportation system, and investigate possible
strategies to meet these needs.
new text end

new text begin (b) The study must include, but is not limited to:
new text end

new text begin (1) evaluation of the current needs of the state's highway systems and bridges;
new text end

new text begin (2) analysis and quantification of the needs for the next 20 years of the state's
highway systems and bridges;
new text end

new text begin (3) comparison of estimates of revenues raised by current transportation funding
sources, with long-term needs of the state's transportation system;
new text end

new text begin (4) identification of options for maintenance and improvement of the state's
transportation system with specific reference to factors such as changes in vehicle fuel
economy, availability of alternative modes of transportation, and the nation's attempts to
decrease dependence on foreign oil;
new text end

new text begin (5) analysis of alternative pricing options utilized in other states, and their potential
for use, public acceptance, alleviation of congestion, and revenue generation in this
state; and
new text end

new text begin (6) identification of options for road pricing or other alternative financing
mechanisms, and estimates of implementation costs, user costs, and revenue.
new text end

new text begin (c) The commissioner shall report the results of the study to the legislature no later
than January 12, 2007.
new text end

Sec. 12. new text begin EFFECTIVE DATE.
new text end

new text begin Except as specifically provided otherwise, this article is effective the day following
final enactment.
new text end