HF 4

1st Unofficial Engrossment - 89th Legislature (2015 - 2016) Posted on 04/24/2015 10:03am

A bill for an act
relating to transportation; capital investment; taxes; amending provisions
governing transportation finance; establishing gross receipts motor fuels tax;
amending vehicle registration tax and metropolitan area transit sales tax;
amending distribution of highway user fund and state-aid funding; incorporating
efficiencies; modifying various fees and charges; modifying fiscal policies;
requiring reports; authorizing sale and issuance of trunk highway bonds;
appropriating money; amending Minnesota Statutes 2014, sections 16E.15,
subdivision 2; 115A.908; 161.081, subdivision 1; 161.082, subdivision 1, by
adding a subdivision; 161.083; 161.088, subdivision 5; 161.20, by adding a
subdivision; 161.231; 161.46, subdivision 2; 162.07, subdivision 1a; 168.002,
subdivision 24; 168.012, subdivision 1c; 168.013, subdivisions 1a, 1g, 8;
168.017, by adding a subdivision; 168.053, subdivision 1; 168.12, subdivisions
1, 2, 2b, 2c, 2d, 2e, 2g, 5; 168.121, subdivision 1; 168.123, subdivision 1;
168.1235, subdivision 1; 168.1255, subdivision 1; 168.128, subdivision 2;
168.1291, subdivision 4; 168.1295, subdivision 1; 168.1296, subdivision 1;
168.1297, subdivision 1; 168.1298, subdivision 1; 168.1299, subdivision 1;
168.27, subdivision 22; 168.31, by adding a subdivision; 168.33, subdivisions 2,
7; 168.62, subdivision 3; 168A.05, by adding a subdivision; 168A.07, by adding
a subdivision; 168D.06; 169.011, by adding a subdivision; 169.798, subdivision
4; 171.01, subdivisions 37, 49a, by adding a subdivision; 171.06, subdivisions 1,
2, 3; 171.07, subdivision 1; 174.42, by adding a subdivision; 174.50, by adding
a subdivision; 222.50, subdivision 7; 296A.061; 296A.11; 296A.12; 296A.16;
296A.18, subdivisions 2, 3, 4, 5, 6, 7; 297A.815, subdivision 3; 297A.992,
subdivisions 1, 4, 5, 6; 297B.03; 297B.09, subdivision 1; 299A.465, subdivisions
2, 5, by adding subdivisions; 299D.09; 360.024; 360.305, subdivision 4;
473.167; Laws 2014, chapter 312, article 11, section 33; proposing coding for
new law in Minnesota Statutes, chapters 161; 168; 169; 174; 219; 296A; 297A;
299F; repealing Minnesota Statutes 2014, sections 161.081, subdivision 3;
473.4051, subdivision 2.

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

ARTICLE 1

TRANSPORTATION AND PUBLIC SAFETY APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2016 new text end		new text begin 2017 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 113,399,000 new text end	new text begin $ new text end	new text begin 102,079,000 new text end	new text begin $ new text end	new text begin 215,478,000 new text end
new text begin Airports new text end		new text begin 25,109,000 new text end		new text begin 25,109,000 new text end		new text begin 50,218,000 new text end
new text begin C.S.A.H. new text end		new text begin 771,437,000 new text end		new text begin 850,253,000 new text end		new text begin 1,621,690,000 new text end
new text begin M.S.A.S. new text end		new text begin 210,467,000 new text end		new text begin 237,802,000 new text end		new text begin 448,269,000 new text end
new text begin Special Revenue new text end		new text begin 122,107,000 new text end		new text begin 122,734,000 new text end		new text begin 244,841,000 new text end
new text begin H.U.T.D. new text end		new text begin 2,426,000 new text end		new text begin 2,435,000 new text end		new text begin 4,861,000 new text end
new text begin Trunk Highway new text end		new text begin 1,868,014,000 new text end		new text begin 2,000,895,000 new text end		new text begin 3,868,909,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 3,112,959,000 new text end	new text begin $ new text end	new text begin 3,341,307,000 new text end	new text begin $ new text end	new text begin 6,454,266,000 new text end

Sec. 2. new text begin TRANSPORTATION APPROPRIATIONS. new text end

new text begin 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
"2016" and "2017" used in this article mean
that the appropriations listed under them are
available for the fiscal year ending June 30,
2016, or June 30, 2017, respectively. "The
first year" is fiscal year 2016. "The second
year" is fiscal year 2017. "The biennium" is
fiscal years 2016 and 2017.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2016 new text end		new text begin 2017 new text end

Sec. 3. new text begin DEPARTMENT OF TRANSPORTATION. new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 2,888,057,000 new text end

new text begin $ new text end

new text begin 3,103,976,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2016 new text end	new text begin 2017 new text end
new text begin General new text end	new text begin 47,973,000 new text end	new text begin 27,153,000 new text end
new text begin Airports new text end	new text begin 25,109,000 new text end	new text begin 25,109,000 new text end
new text begin C.S.A.H. new text end	new text begin 771,167,000 new text end	new text begin 850,253,000 new text end
new text begin M.S.A.S. new text end	new text begin 210,467,000 new text end	new text begin 237,802,000 new text end
new text begin Special Revenue new text end	new text begin 60,543,000 new text end	new text begin 60,400,000 new text end
new text begin Trunk Highway new text end	new text begin 1,772,798,000 new text end	new text begin 1,903,259,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Multimodal Systems new text end

new text begin (a) Aeronautics
new text end

new text begin (1) Airport Development and Assistance new text end

new text begin 19,798,000 new text end

new text begin 19,798,000 new text end

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

new text begin The base appropriation for fiscal years 2018
and 2019 is $14,298,000 for each year.
new text end

new text begin Notwithstanding Minnesota Statutes, section
16A.28, subdivision 6, this appropriation is
available for five years after appropriation.
If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.
new text end

new text begin (2) Aviation Support and Services new text end

new text begin 6,661,000 new text end

new text begin 6,661,000 new text end

new text begin Appropriations by Fund new text end
new text begin Airports new text end	new text begin 5,311,000 new text end	new text begin 5,311,000 new text end
new text begin Trunk Highway new text end	new text begin 1,350,000 new text end	new text begin 1,350,000 new text end

new text begin $80,000 in each year is from the state airports
fund for the Civil Air Patrol.
new text end

new text begin (3) Airplane Purchase new text end

new text begin 5,000,000 new text end

new text begin -0- new text end

new text begin This appropriation is from the general fund
to be used in conjunction with proceeds
of the sale of an existing airplane for the
replacement of one state airplane.
new text end

new text begin (b) Transit new text end

new text begin 27,543,000 new text end

new text begin 27,567,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 23,745,000 new text end	new text begin 23,745,000 new text end
new text begin Trunk Highway new text end	new text begin 798,000 new text end	new text begin 822,000 new text end
new text begin Special Revenue new text end	new text begin 3,000,000 new text end	new text begin 3,000,000 new text end

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

new text begin $500,000 in each year is from the general fund
for noninfrastructure activities in the safe
routes to school program under Minnesota
Statutes, section 174.40, subdivision 7a.
new text end

new text begin The base appropriation from the general fund
for fiscal years 2018 and 2019 is $21,245,000
in each year.
new text end

new text begin $3,000,000 in each year is from the greater
Minnesota active transportation account in
the special revenue fund under Minnesota
Statutes, section 174.38. This is a onetime
appropriation.
new text end

new text begin (c) Passenger Rail new text end

new text begin 500,000 new text end

new text begin 500,000 new text end

new text begin 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.
new text end

new text begin (d) Freight new text end

new text begin 5,443,000 new text end

new text begin 5,452,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 256,000 new text end	new text begin 256,000 new text end
new text begin Trunk Highway new text end	new text begin 5,044,000 new text end	new text begin 5,196,000 new text end
new text begin Special Revenue new text end	new text begin 143,000 new text end	new text begin -0- new text end

new text begin $143,000 in the first year is from the rail
service improvement account in the special
revenue fund for a grant to the Minnesota
Commercial Railway for emergency
temporary repairs to approximately 6.5 miles
of railroad track described as that portion of
the Minnesota Commercial main running
lead, between M&D Junction in White Bear
Lake and the end of track in Hugo.
new text end

new text begin Subd. 3. new text end new text begin State Roads new text end

new text begin (a) Operations and Maintenance new text end

new text begin 284,030,000 new text end

new text begin 297,185,000 new text end

new text begin (b) Program Planning and Delivery new text end

new text begin 249,214,000 new text end

new text begin 263,625,000 new text end

new text begin $130,000 in each year is available for
administrative costs of the targeted group
business program.
new text end

new text begin $300,000 in fiscal year 2016 is for grants
to implement enhanced organizational
effectiveness and innovation review under
article 8, section 29.
new text end

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

new text begin $75,000 in 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.
new text end

new text begin $900,000 in each year is available for
grants for transportation studies outside
the metropolitan area to identify critical
concerns, problems, and issues. These
grants are available: (1) to regional
development commissions; (2) in regions
where no regional development commission
is functioning, to joint powers boards
established under agreement of two or
more political subdivisions in the region to
exercise the planning functions of a regional
development commission; and (3) in regions
where no regional development commission
or joint powers board is functioning, to the
department's district office for that region.
new text end

new text begin $1,000,000 in each year is available
for management of contaminated and
regulated material on property owned by
the Department of Transportation, including
mitigation of property conveyances, facility
acquisition or expansion, chemical release at
maintenance facilities, and spills on the trunk
highway system where there is no known
responsible party. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin The base appropriation for program planning
and delivery for fiscal years 2018 and 2019
is $262,625,000 in each year.
new text end

new text begin (c) State Road Construction new text end

new text begin 967,480,000 new text end

new text begin 1,025,905,000 new text end

new text begin It is estimated that these appropriations will
be funded as follows:
new text end

new text begin Appropriations by Fund new text end
new text begin Federal Highway Aid new text end	new text begin 455,970,000 new text end	new text begin 462,570,000 new text end
new text begin Highway User Taxes new text end	new text begin 511,510,000 new text end	new text begin 563,335,000 new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin The base appropriation for state road
construction for fiscal years 2018 and 2019
is $970,905,000 in each year.
new text end

new text begin $10,000,000 in each year is for the
transportation economic development
program under Minnesota Statutes, section
174.12.
new text end

new text begin $5,000,000 in the first year is for the
construction of noise barriers on trunk
highways.
new text end

new text begin The commissioner shall transfer $2,000,000
in the first year to the state right-of-way
acquisition loan account under Minnesota
Statutes, section 161.225.
new text end

new text begin The commissioner shall transfer $50,000,000
in the first year and $55,000,000 in the
second year to the county turnback account
under Minnesota Statutes, section 161.082.
new text end

new text begin The commissioner may expend up to one-half
of one percent of the federal appropriations
under this paragraph as grants to opportunity
industrialization centers and other nonprofit
job training centers for job training programs
related to highway construction.
new text end

new text begin The commissioner may transfer up to
$15,000,000 each year to the transportation
revolving loan fund.
new text end

new text begin The commissioner may receive money
covering other shares of the cost of
partnership projects. These receipts are
appropriated to the commissioner for these
projects.
new text end

new text begin The commissioner may expend an amount as
necessary for land acquisition on corridors
of commerce projects funded under article
2, section 3.
new text end

new text begin (d) Highway Debt Service new text end

new text begin 197,519,000 new text end

new text begin 240,307,000 new text end

new text begin $188,019,000 the first year and $230,807,000
in the second year are for transfer to the state
bond fund. If this appropriation is insufficient
to make all transfers required in the year
for which it is made, the commissioner of
management and budget 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.
new text end

new text begin (e) Electronic Communications new text end

new text begin 5,326,000 new text end

new text begin 5,486,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,000 new text end	new text begin 3,000 new text end
new text begin Trunk Highway new text end	new text begin 5,323,000 new text end	new text begin 5,483,000 new text end

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

new text begin Subd. 4. new text end new text begin Local Roads new text end

new text begin (a) County State-Aid Roads new text end

new text begin 771,167,000 new text end

new text begin 850,253,000 new text end

new text begin This appropriation is from the county
state-aid highway fund under Minnesota
Statutes, section 161.081, and chapter 162.
Notwithstanding Minnesota Statutes, section
16A.28, subdivision 6, this appropriation is
available for six years after appropriation.
new text end

new text begin 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.
new text end

new text begin (b) Municipal State-Aid Roads new text end

new text begin 210,467,000 new text end

new text begin 237,802,000 new text end

new text begin This appropriation is from the municipal
state-aid street fund under Minnesota
Statutes, chapter 162. Notwithstanding
Minnesota Statutes, section 16A.28,
subdivision 6, this appropriation is available
for six years after appropriation.
new text end

new text begin 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.
new text end

new text begin (c) City Streets and Bridges new text end

new text begin 57,400,000 new text end

new text begin 57,400,000 new text end

new text begin $28,700,000 in each year is appropriated from
the small city streets and bridges account in
the special revenue fund under Minnesota
Statutes, section 174.54, subdivision 1.
new text end

new text begin $28,700,000 in each year is appropriated from
the larger city streets and bridges account in
the special revenue fund under Minnesota
Statutes, section 174.54, subdivision 2.
new text end

new text begin (d) Local Bridge Replacement and Rehabilitation new text end

new text begin 10,750,000 new text end

new text begin -0- new text end

new text begin This appropriation is from the general fund
to match federal money and to replace
or rehabilitate local deficient bridges as
provided in Minnesota Statutes, section
174.50. To the extent practicable, the
commissioner shall expend the funds as
provided under Minnesota Statutes, section
174.50, subdivision 6b or 6c. This is a
onetime appropriation.
new text end

new text begin (e) Pedestrian, Bicycle, and Safe Routes to Schools new text end

new text begin 2,500,000 new text end

new text begin 2,500,000 new text end

new text begin This appropriation is from the general fund
for infrastructure activities in the safe routes
to school program under Minnesota Statutes,
section 174.40, and grants for other bicycle
and pedestrian infrastructure that encourages
active transportation choices.
new text end

new text begin (f) Highways on Tribal Lands new text end

new text begin 5,000,000 new text end

new text begin -0- new text end

new text begin This appropriation is from the general fund
for the purposes of maintenance, design, or
construction of highways on tribal lands.
new text end

new text begin Subd. 5. new text end new text begin Agency Management new text end

new text begin (a) Agency Services new text end

new text begin 42,722,000 new text end

new text begin 43,519,000 new text end

new text begin (b) Buildings new text end

new text begin 18,772,000 new text end

new text begin 19,321,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 54,000 new text end	new text begin 54,000 new text end
new text begin Trunk Highway new text end	new text begin 18,718,000 new text end	new text begin 19,267,000 new text end

new text begin Any money appropriated to the commissioner
of transportation for building construction
for any fiscal year before 2016 is available
to the commissioner of transportation
during the biennium to the extent that the
commissioner spends the money on the
building construction projects for which the
money was originally encumbered during the
fiscal year for which it was appropriated.
new text end

new text begin If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.
new text end

new text begin (c) Tort Claims new text end

new text begin 600,000 new text end

new text begin 600,000 new text end

new text begin If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.
new text end

new text begin Subd. 6. new text end new text begin Previous State Road Construction Appropriations new text end

new text begin 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, 2015, and August 1, 2016, on
a form the commissioner of management
and budget provides, on expenditures made
during the previous fiscal year that are
authorized by this subdivision.
new text end

new text begin Subd. 7. new text end new text begin Contingent Appropriation new text end

new text begin 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.
new text end

Sec. 4. new text begin METROPOLITAN COUNCIL new text end

new text begin $ new text end

new text begin 52,249,000 new text end

new text begin $ new text end

new text begin 61,630,000 new text end

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

new text begin The base appropriation is $68,276,000 for
fiscal year 2018 and $74,141,000 for fiscal
year 2019.
new text end

Sec. 5. new text begin DEPARTMENT OF PUBLIC SAFETY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 172,741,000 new text end

new text begin $ new text end

new text begin 176,071,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2016 new text end	new text begin 2017 new text end
new text begin General new text end	new text begin 13,169,000 new text end	new text begin 13,288,000 new text end
new text begin Special Revenue new text end	new text begin 61,564,000 new text end	new text begin 62,334,000 new text end
new text begin H.U.T.D. new text end	new text begin 2,192,000 new text end	new text begin 2,213,000 new text end
new text begin Trunk Highway new text end	new text begin 95,816,000 new text end	new text begin 98,236,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Administration and Related Services new text end

new text begin (a) Office of Communications new text end

new text begin 517,000 new text end

new text begin 530,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 113,000 new text end	new text begin 115,000 new text end
new text begin Trunk Highway new text end	new text begin 404,000 new text end	new text begin 415,000 new text end

new text begin (b) Public Safety Support new text end

new text begin 8,715,000 new text end

new text begin 8,804,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,662,000 new text end	new text begin 3,667,000 new text end
new text begin H.U.T.D. new text end	new text begin 1,366,000 new text end	new text begin 1,366,000 new text end
new text begin Trunk Highway new text end	new text begin 3,687,000 new text end	new text begin 3,771,000 new text end

new text begin $130,000 in each year is from the general
fund for the additional position of labor
relations manager.
new text end

new text begin $380,000 in 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.
new text end

new text begin $1,367,000 in 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.
new text end

new text begin $600,000 in each year is from the general
fund and $100,000 in each year is from the
trunk highway fund for soft body armor
reimbursements under Minnesota Statutes,
section 299A.38.
new text end

new text begin (c) Technology and Support Service new text end

new text begin 3,685,000 new text end

new text begin 3,685,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,322,000 new text end	new text begin 1,322,000 new text end
new text begin H.U.T.D. new text end	new text begin 19,000 new text end	new text begin 19,000 new text end
new text begin Trunk Highway new text end	new text begin 2,344,000 new text end	new text begin 2,344,000 new text end

new text begin Subd. 3. new text end new text begin State Patrol new text end

new text begin (a) Patrolling Highways new text end

new text begin 81,756,000 new text end

new text begin 83,857,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 37,000 new text end	new text begin 37,000 new text end
new text begin H.U.T.D. new text end	new text begin 807,000 new text end	new text begin 828,000 new text end
new text begin Trunk Highway new text end	new text begin 80,912,000 new text end	new text begin 82,992,000 new text end

new text begin $707,000 in the first year and $720,000 in the
second year are from the highway user tax
distribution fund for the Vehicle Crimes Unit,
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.
new text end

new text begin $500,000 is appropriated from the trunk
highway fund in fiscal year 2016 to assist in
the purchase of a single engine aircraft for
the State Patrol.
new text end

new text begin (b) Commercial Vehicle Enforcement new text end

new text begin 8,023,000 new text end

new text begin 8,257,000 new text end

new text begin (c) Capitol Security new text end

new text begin 8,035,000 new text end

new text begin 8,147,000 new text end

new text begin This appropriation is from the general fund.
new text end

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

new text begin The commissioner may not transfer any
money appropriated to the commissioner
under this section: (1) to capitol security; or
(2) from capitol security.
new text end

new text begin Subd. 4. new text end new text begin Driver and Vehicle Services new text end

new text begin (a) Vehicle Services new text end

new text begin 30,027,000 new text end

new text begin 30,291,000 new text end

new text begin This appropriation is from the vehicle
services operating account in the special
revenue fund.
new text end

new text begin Of these appropriations, $59,000 in each year
is for the creation of a Data Services Unit
within the Division of Driver and Vehicle
Services.
new text end

new text begin (b) Driver Services new text end

new text begin 30,166,000 new text end

new text begin 30,655,000 new text end

new text begin This appropriation is from the driver services
operating account in the special revenue fund.
new text end

new text begin $31,000 in each year is for the creation of a
Data Services Unit within the Division of
Driver and Vehicle Services.
new text end

new text begin $74,000 in the first year and $124,000 in
the second year are for staff costs related to
insurance attestation requirements. This is a
onetime appropriation.
new text end

new text begin $15,000 in the first year is for costs related to
creating a driving privilege license.
new text end

new text begin Subd. 5. new text end new text begin Traffic Safety new text end

new text begin 446,000 new text end

new text begin 457,000 new text end

new text begin 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.
new text end

new text begin Subd. 6. new text end new text begin Pipeline Safety new text end

new text begin 1,371,000 new text end

new text begin 1,388,000 new text end

new text begin This appropriation is from the pipeline safety
account in the special revenue fund.
new text end

Sec. 6. new text begin DEPARTMENT OF REVENUE new text end

new text begin $ new text end

new text begin 234,000 new text end

new text begin $ new text end

new text begin 222,000 new text end

new text begin $234,000 in fiscal year 2016 and $222,000
in fiscal year 2017 are appropriated from
the highway user tax distribution fund to
the commissioner of revenue for tax system
management costs.
new text end

Sec. 7. new text begin BOARD OF WATER AND SOIL RESOURCES AND DEPARTMENT OF NATURAL RESOURCES new text end

new text begin $ new text end

new text begin 270,000 new text end

new text begin $ new text end

new text begin (a) $135,000 to the Board of Water and Soil
Resources and $135,000 to the commissioner
of natural resources are appropriated in fiscal
year 2016 from the state aid administrative
account in the county state-aid highway fund
to study the feasibility of the state assuming
administration of the section 404 permit
program of the federal Clean Water Act. The
United States Army Corps of Engineers,
St. Paul District; and the United States
Environmental Protection Agency shall be
consulted with during the development of
the study. These appropriations are available
until June 30, 2017. The study shall identify:
new text end

new text begin (1) the federal requirements for state
assumption of the 404 program;
new text end

new text begin (2) the potential extent of assumption,
including those waters that would remain
under the jurisdiction of the Army Corps
of Engineers due to the prohibition of 404
assumption in certain waters as defined in
section 404(g)(1) of the federal Clean Water
Act;
new text end

new text begin (3) differences in waters regulated under
Minnesota laws compared to waters of the
United States, including complications and
potential solutions to address the current
uncertainties relating to determining waters
of the United States;
new text end

new text begin (4) measures to ensure the protection of
aquatic resources consistent with the Clean
Water Act, Wetland Conservation Act, and
the public waters program administered by
the Department of Natural Resources;
new text end

new text begin (5) changes to existing state law, including
changes to current implementation structure
and processes, that would need to occur
to allow for state assumption of the 404
program;
new text end

new text begin (6) new agency responsibilities for
implementing federal requirements
and procedures that would become the
obligation of the state under assumption,
including the staff and resources needed for
implementation;
new text end

new text begin (7) the estimated costs and savings that would
accrue to affected units of government;
new text end

new text begin (8) the effect on application review and
approval processes and time frames;
new text end

new text begin (9) alternatives to assumption that would also
achieve the goals of regulatory simplification,
efficiency, and reduced permitting times;
new text end

new text begin (10) options for financing any additional
costs of implementation; and
new text end

new text begin (11) other information as determined by the
board and commissioner.
new text end

new text begin (b) The board and commissioner shall
involve stakeholders in the development of a
plan of the study required under this section.
new text end

new text begin (c) By January 15, 2017, the board and
commissioner must report the study to the
legislative policy and finance committees and
divisions with jurisdiction over environment
and natural resources.
new text end

Sec. 8. new text begin TRANSFER new text end

new text begin $ new text end

new text begin 3,000,000 new text end

new text begin $ new text end

new text begin 3,000,000 new text end

new text begin $3,000,000 in fiscal year 2016 and $3,000,000
in fiscal year 2017 are transferred from the
general fund to the greater Minnesota active
transportation account in the special revenue
fund under Minnesota Statutes, section
174.38. These are onetime transfers.
new text end

Sec. 9. new text begin APPROPRIATION.
new text end

new text begin (a) $8,000 in fiscal year 2016 and $8,000 in fiscal year 2017 are appropriated from
the general fund to the Legislative Coordinating Commission for expenses related to the
road-user charge working group.
new text end

new text begin (b) $165,000 in fiscal year 2016 and $95,000 in fiscal year 2017 are appropriated
from the general fund to the commissioner of transportation for administrative expenses
related to the road-user charge working group, including the costs of consultants.
new text end

ARTICLE 2

TRUNK HIGHWAY BONDING

Section 1. 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 management and budget shall sell and issue
bonds of the state in an amount up to $1,001,000,000 in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the
Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested
by the commissioner of transportation. The proceeds of the bonds, except accrued interest
and any premium received from the sale of the bonds, must be deposited in the bond
proceeds account in the trunk highway fund.
new text end

Sec. 2. new text begin BOND 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 public purposes. Appropriations of bond proceeds must be spent as
authorized by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified,
money appropriated in this article for a capital program or project may be used to pay state
agency staff costs that are attributed directly to the capital program or project in accordance
with accounting policies adopted by the commissioner of management and budget.
new text end

new text begin SUMMARY new text end
new text begin Department of Transportation new text end	new text begin $ new text end	new text begin 1,000,000,000 new text end
new text begin Department of Management and Budget new text end		new text begin 1,000,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 1,001,000,000 new text end

new text begin APPROPRIATIONS new text end

Sec. 3. new text begin DEPARTMENT OF TRANSPORTATION CORRIDORS OF COMMERCE new text end

new text begin $ new text end

new text begin 800,000,000 new text end

new text begin (a) The appropriation in this section is
to the commissioner of transportation for
the corridors of commerce program under
Minnesota Statutes, section 161.088, and is
available in the amounts of $200,000,000
in each fiscal year from 2016 to 2019. The
commissioner may use up to 17 percent of
the amount each year for program delivery.
new text end

new text begin (b) In any fiscal year covered by this
appropriation, the commissioner may
identify projects based on previous selection
processes or may perform a new selection.
new text end

new text begin (c) The appropriation in this section cancels
as specified under Minnesota Statutes, section
16A.642, except that the commissioner of
management and budget shall count the start
of authorization for issuance of state bonds
as the first day of the fiscal year during
which the bonds are available to be issued as
specified under paragraph (a), and not as the
date of enactment of this section.
new text end

Sec. 4. new text begin TRANSPORTATION ECONOMIC DEVELOPMENT PROGRAM new text end

new text begin $ new text end

new text begin 200,000,000 new text end

new text begin (a) This appropriation is for the transportation
economic development program under
Minnesota Statutes, section 174.12, and is
available in the amounts of $50,000,000 in
each fiscal year from 2016 to 2019. The
commissioner may use up to 17 percent of
the amount each year for program delivery.
new text end

new text begin (b) The appropriation in this section cancels
as specified under Minnesota Statutes, section
16A.642, except that the commissioner of
management and budget shall count the start
of authorization for issuance of state bonds
as the first day of the fiscal year during
which the bonds are available to be issued as
specified under paragraph (a), and not as the
date of enactment of this section.
new text end

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

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin This appropriation is to the commissioner
of management and budget for bond sale
expenses under Minnesota Statutes, sections
16A.641, subdivision 8; and 167.50,
subdivision 4, and is available in the amounts
of $250,000 in each fiscal year from 2016 to
2019.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2015.
new text end

ARTICLE 3

GROSS RECEIPTS TAX

Section 1.

Minnesota Statutes 2014, section 296A.061, is amended to read:

296A.061 CANCELLATION OR NONRENEWAL OF LICENSES.

The commissioner may cancel a license or not renew a license if one of the following
conditions occurs:

(1) the license holder has not filed a petroleum tax return or report for at least one year;

(2) new text begin the license holder has not filed a gross receipts tax return for at least one year;
new text end

new text begin (3) new text end the license holder has not reported any petroleum tax liability new text begin or gross receipts
tax liability new text end on the license holder's returns or reports for at least one year; or

deleted text begin (3) deleted text end new text begin (4) new text end the license holder requests cancellation of the license.

Sec. 2.

new text begin [296A.085] MOTOR FUELS GROSS RECEIPTS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Imposition. new text end

new text begin A tax is imposed on the wholesale business of selling
the means or substance used for propelling vehicles on the highways of this state. The tax
is imposed at the rate of 6.5 percent of gross receipts derived by a distributor from the first
sale at wholesale of gasoline, gasoline blended with ethanol, agricultural alcohol gasoline,
and special fuels within this state for use in motor vehicles.
new text end

new text begin Subd. 2. new text end

new text begin Exemptions. new text end

new text begin Subdivision 1 does not apply to gasoline, denatured ethanol,
special fuel, or alternative fuel purchased by an entity described in section 296A.07,
subdivision 4, or 296A.08, subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Conversion of tax rate. new text end

new text begin (a) Annually on or before August 1, the
commissioner shall determine the applicable gross receipts motor fuels tax rate per gallon.
The tax per gallon shall be the greater of either:
new text end

new text begin (1) 6.5 percent of $2.50; or
new text end

new text begin (2) 6.5 percent of the prior fiscal year's average wholesale gasoline price per
gallon in Minnesota for all grades by refiners, as published by the United States Energy
Information Administration and rounded to the nearest tenth of a cent per gallon. The
wholesale price used must not include any tax or fee assessed by the state of Minnesota
or the United States government.
new text end

new text begin (b) The announced rate is effective for a 12-month period consisting of the next
October 1 to September 30. The commissioner shall publish on the department's Web site
the total of the gross receipts tax and the excise tax.
new text end

new text begin Subd. 4. new text end

new text begin Administrative provisions. new text end

new text begin Except as otherwise provided in this chapter,
the relevant audit, assessment, refund, penalty, interest, enforcement, collection remedies,
appeal, and administrative provisions of chapter 289A apply to taxes imposed under
this section.
new text end

new text begin Subd. 5. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner shall deposit the revenues from
the gross receipts tax into the highway user tax distribution fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2015, and applies to
gross receipts attributable to the described products and derived by a distributor on or
after that day.
new text end

Sec. 3.

Minnesota Statutes 2014, section 296A.11, is amended to read:

296A.11 SELLER MAY COLLECT TAX.

A person who directly or indirectly pays a gasoline or special fuel tax new text begin or motor fuels
gross receipts tax new text end as provided in this chapter and who does not in fact use the gasoline or
special fuel in motor vehicles in this state or receive, store, or withdraw it from storage
to be used personally for the purpose of producing or generating power for propelling
aircraft, but sells or otherwise disposes of the same, except as provided in section 296A.16,
subdivision 3, is hereby authorized to collect, from the person to whom the gasoline or
special fuel is so sold or disposed of, the tax so paid, and is hereby required, upon request,
to make, sign, and deliver to such person an invoice of such sale or disposition. The sums
collected must be held as a special fund in trust for the state of Minnesota.

Sec. 4.

Minnesota Statutes 2014, section 296A.12, is amended to read:

296A.12 GASOLINE AND SPECIAL FUEL TAX new text begin AND MOTOR FUELS
GROSS RECEIPTS TAX new text end IN LIEU OF OTHER TAXES.

Gasoline and special fuel excise taxes new text begin and motor fuels gross receipts tax new text end shall be
in lieu of all other taxes imposed upon the business of selling or dealing in gasoline or
special fuel, whether imposed by the state or by any of its political subdivisions, but are in
addition to all ad valorem taxes now imposed by law. Nothing in this chapter is construed
as prohibiting the governing body of any city of this state from licensing and regulating
deleted text begin such deleted text end new text begin a new text end business where its authority is conferred by state law or city charter.

Sec. 5.

Minnesota Statutes 2014, section 296A.16, is amended to read:

296A.16 REFUND OR CREDIT.

Subdivision 1.

Credit or refund of gasoline or special fuel tax paid.

The
commissioner shall allow the distributor credit or refund of the new text begin excise and motor fuels
gross receipts new text end tax paid on gasoline and special fuel:

(1) exported or sold for export from the state, other than in the supply tank of a
motor vehicle or of an aircraft;

(2) sold to the United States government to be used exclusively in performing its
governmental functions and activities or to any "cost plus a fixed fee" contractor employed
by the United States government on any national defense project;

(3) if the fuel is placed in a tank used exclusively for residential heating;

(4) destroyed by accident while in the possession of the distributor;

(5) in error;

(6) in the case of gasoline only, sold for storage in an on-farm bulk storage tank, if
the tax was not collected on the sale; and

(7) in such other cases as the commissioner may permit, consistent with the provisions
of this chapter and other laws relating to the gasoline and special fuel excise taxes.

Subd. 2.

Fuel used in other vehicle; claim for refund.

Any person who buys and
uses gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles
except as provided in clause (2), or motorboats, or special fuel for a qualifying purpose
other than use in licensed motor vehicles, and who paid the new text begin excise or gross receipts new text end tax
directly or indirectly through the amount of the tax being included in the price of the
gasoline or special fuel, or otherwise, shall be reimbursed and repaid the amount of the
tax paid upon filing with the commissioner a claim for refund in the form and manner
prescribed by the commissioner, and containing the information the commissioner shall
require. By signing any such claim which is false or fraudulent, the applicant shall be
subject to the penalties provided in this chapter for knowingly making a false claim.
The claim shall set forth the total amount of the gasoline so purchased and used by the
applicant other than in motor vehicles, or special fuel purchased and used by the applicant
other than in licensed motor vehicles, and shall state when and for what purpose it was
used. When a claim contains an error in computation or preparation, the commissioner
is authorized to adjust the claim in accordance with the evidence shown on the claim or
other information available to the commissioner. The commissioner, on being satisfied
that the claimant is entitled to the payments, shall approve the claim and transmit it to the
commissioner of management and budget. The words "gasoline" or "special fuel" as used
in this subdivision do not include aviation gasoline or special fuel for aircraft. Gasoline or
special fuel bought and used for a "qualifying purpose" means:

(1) Gasoline or special fuel used in carrying on a trade or business, used on a farm
situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose"
have the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue
Code as defined in section 289A.02, subdivision 7.

(2) Gasoline or special fuel used for off-highway business use.

(i) "Off-highway business use" means any use off the public highway by a person in
that person's trade, business, or activity for the production of income.

(ii) Off-highway business use includes use of a passenger snowmobile off the public
highways as part of the operations of a resort as defined in section 157.15, subdivision 11;
and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not
including fuel consumed during idling time.

(iii) Off-highway business use does not include use as a fuel in a motor vehicle
which, at the time of use, is registered or is required to be registered for highway use under
the laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu
of a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in
this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the
fuel tank of a licensed motor vehicle and must be stored in a separate supply tank.

(3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles,
manufactured in Minnesota, and shipped by interstate carrier to destinations in other
states or foreign countries.

Subd. 3.

Destruction by accident; refund to dealer.

Notwithstanding the
provisions of subdivision 1, the commissioner shall allow a dealer a refund of:

(1) the tax paid by the distributor on new text begin , or gross receipts from the sale of, new text end gasoline,
undyed diesel fuel, or undyed kerosene destroyed by accident while in the possession of
the dealer; or

(2) the tax paid by a distributor or special fuels dealer on new text begin , or gross receipts from the
sale of, new text end other special fuels destroyed by accident while in the possession of the dealer.

Subd. 4.

Refrigerator units; refunds.

Notwithstanding the provisions of
subdivision 1, the commissioner shall allow a special fuel dealer a refund of the tax paid
on new text begin , or gross receipts from the sale of, new text end fuel sold directly into a supply tank of a refrigeration
unit with a separate engine and used exclusively by that refrigeration unit. A claim for
refund may be filed as provided in this section.

Subd. 4a.

Undyed kerosene; refunds.

Notwithstanding subdivision 1, the
commissioner shall allow a refund of the tax paid on new text begin , or gross receipts from the sale of,
new text end undyed kerosene used exclusively for a purpose other than as fuel for a motor vehicle
using the streets and highways. To obtain a refund, the person making the sale to an end
user must meet the Internal Revenue Service requirements for sales from a blocked pump.
A claim for a refund may be filed as provided in this section.

Subd. 4b.

Racing gasoline; refunds.

Notwithstanding subdivision 1, the
commissioner shall allow a licensed distributor a refund of the tax paid on new text begin , or gross
receipts from the sale of, new text end leaded gasoline of 110 octane or more that does not meet ASTM
specification D4814 for gasoline and that is sold in bulk for use in nonregistered motor
vehicles. A claim for a refund may be filed as provided for in this section.

Subd. 5.

Qualifying service station credit.

Notwithstanding any other provision of
law to the contrary, the tax imposed on gasoline, undyed diesel fuel, or undyed kerosene new text begin ,
together with the amount attributable to gross receipts tax on these fuels, new text end delivered to a
qualified service station may not exceed, or must be reduced to, a rate not more than
three cents per gallon above the state tax rate imposed on such products sold by a service
station in a contiguous state located within the distance indicated in this subdivision. A
distributor shall be allowed a credit or refund for the amount of reduction computed in
accordance with this subdivision. For purposes of this subdivision, a "qualifying service
station" means a service station located within 7.5 miles, measured by the shortest route
by public road, from a service station selling like product in the contiguous state.

Subd. 7.

Civil penalty for filing false claim.

A person who violates section
296A.23, subdivision 1, shall forfeit the full amount of the claim. In addition, a person who
is convicted under section 296A.23 for filing a false statement or claim shall, in addition
to any criminal penalties imposed, be prohibited from filing with the commissioner any
claim for refund upon gasoline purchased within six months after such conviction.

Subd. 8.

Appropriation.

There is appropriated to the persons entitled to refund or
credit under this section, from the fund or account in the state treasury to which the money
was credited, an amount sufficient to make the credit or refund.

Sec. 6.

Minnesota Statutes 2014, section 296A.18, subdivision 2, is amended to read:

Subd. 2.

Motorboat.

Approximately 1-1/2 percent of all gasoline received in this
state and 1-1/2 percent of all gasoline produced or brought into this state, except gasoline
used for aviation purposes, is being used as fuel for the operation of motorboats on the
waters of this state and of the total revenue derived from the imposition of the gasoline
fuel tax new text begin and motor fuels gross receipts tax on gasoline new text end for uses other than for aviation
purposes, 1-1/2 percent of the revenue is the amount of tax on fuel used in motorboats
operated on the waters of this state. The amount of unrefunded tax paid on gasoline used
for motor boat purposes as computed in this chapter shall be paid into the state treasury
and credited to a water recreation account in the special revenue fund for acquisition,
development, maintenance, and rehabilitation of sites for public access and boating
facilities on public waters; lake and river improvement; and boat and water safety.

Sec. 7.

Minnesota Statutes 2014, section 296A.18, subdivision 3, is amended to read:

Subd. 3.

Snowmobile.

Approximately one percent of all gasoline received in and
produced or brought into this state, except gasoline used for aviation purposes, is being
used as fuel for the operation of snowmobiles in this state, and of the total revenue derived
from the imposition of the gasoline fuel tax new text begin and motor fuels gross receipts tax on gasoline
new text end for uses other than for aviation purposes, one percent of such revenues is the amount of
tax on fuel used in snowmobiles operated in this state.

Sec. 8.

Minnesota Statutes 2014, section 296A.18, subdivision 4, is amended to read:

Subd. 4.

All-terrain vehicle.

Approximately 0.27 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 new text begin and motor fuels gross
receipts tax on gasoline new text end , 0.27 of one percent is the amount of tax on fuel used in all-terrain
vehicles operated in this state.

Sec. 9.

Minnesota Statutes 2014, section 296A.18, subdivision 5, is amended to read:

Subd. 5.

Off-highway motorcycles.

Approximately 0.046 of one percent of
all gasoline received or produced in or brought into this state, except gasoline used for
aviation purposes, is being used for the operation of off-highway motorcycles in this state,
and of the total revenue derived from the imposition of the gasoline fuel tax new text begin and motor
fuels gross receipts tax on gasoline new text end for uses other than for aviation purposes, 0.046 of one
percent is the amount of tax on fuel used in off-highway motorcycles operated in this state.

Sec. 10.

Minnesota Statutes 2014, section 296A.18, subdivision 6, is amended to read:

Subd. 6.

Off-road vehicle.

Approximately 0.164 of one percent of all gasoline
received or produced in or brought into this state, except gasoline used for aviation
purposes, is being used for the off-road operation of off-road vehicles, as defined in
section 84.797, in this state, and of the total revenue derived from the imposition of the
gasoline fuel tax new text begin and motor fuels gross receipts tax on gasoline new text end for uses other than aviation
purposes, 0.164 of one percent is the amount of tax on fuel used for off-road operation
of off-road vehicles in this state.

Sec. 11.

Minnesota Statutes 2014, section 296A.18, subdivision 7, is amended to read:

Subd. 7.

Forest road.

Approximately 0.116 percent of the total annual unrefunded
revenue from the gasoline fuel tax new text begin and motor fuels gross receipts tax on gasoline new text end on all
gasoline and special fuel received in, produced, or brought into this state, except gasoline
and special fuel used for aviation purposes, is derived from the operation of motor vehicles
on state forest roads and county forest access roads. This revenue, together with interest
and penalties for delinquency in payment, paid or collected pursuant to the provisions of
this chapter, is appropriated from the highway user tax distribution fund and must be
transferred and credited in equal installments on July 1 and January 1 to the state forest
road account established in section 89.70. Of this amount, 0.0605 percent is annually
derived from motor vehicles operated on state forest roads and 0.0555 percent is annually
derived from motor vehicles operated on county forest access roads in this state. An
amount equal to 0.0555 percent of the unrefunded revenue must be annually transferred to
counties for the management and maintenance of county forest roads.

Sec. 12. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall rename Minnesota Statutes,
chapter 296A, to be "Tax on Petroleum and Other Fuels; Gross Receipts Tax."
new text end

ARTICLE 4

VEHICLE REGISTRATION TAX

Section 1.

Minnesota Statutes 2014, section 168.013, subdivision 1a, is amended to read:

Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined
in section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax
shall be new text begin an amount equal to a combination of the following: new text end $10 new text begin for those vehicles with
registration periods beginning on or before June 30, 2018; and $20 for those vehicles
with registration periods on or after July 1, 2018, new text end plus an additional tax equal to deleted text begin 1.25 deleted text end new text begin a
percentage of 1.5 new text end percent of the base value new text begin as specified in paragraph (h) new text end .

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

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

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

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

	FROM		TO
$	0		$ 199.99
$	200		$ 399.99

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

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

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

(h) The annual additional tax must be computed upon deleted text begin a deleted text end new text begin the specified new text end percentage of
new text begin 1.5 percent of new text end the base value as follows: during the first year of vehicle life, upon 100
percent deleted text begin of the base value deleted text end ; for the second year, 90 percent deleted text begin of such value deleted text end ; for the third year,
80 percent deleted text begin of such value deleted text end ; for the fourth year, 70 percent deleted text begin of such value deleted text end ; for the fifth year, 60
percent deleted text begin of such value deleted text end ; for the sixth year, 50 percent deleted text begin of such value deleted text end ; for the seventh year,
40 percent deleted text begin of such value deleted text end ; for the eighth year, 30 percent deleted text begin of such value deleted text end ; for the ninth
year, 20 percent deleted text begin of such value deleted text end ; for the tenth year, ten percent deleted text begin of such value deleted text end ; for the 11th
and each succeeding year, the sum of $25.

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

deleted text begin (j) For any vehicle previously registered in Minnesota, the annual additional tax
due under this subdivision must not exceed the smallest amount of annual additional
tax previously paid or due on the vehicle.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any tax for a registration period that begins on or after September 1, 2015.
new text end

ARTICLE 5

METROPOLITAN TRANSIT IMPROVEMENT AREA SALES TAX

Section 1.

Minnesota Statutes 2014, section 297A.992, subdivision 1, is amended to
read:

Subdivision 1.

Definitions.

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

(1) "metropolitan transportation area" means the counties participating in the joint
powers agreement under subdivision 3;

(2) "eligible county" means the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington; new text begin and
new text end

(3) deleted text begin "committee" means the Grant Evaluation and Ranking System (GEARS)
Committee;
deleted text end

deleted text begin (4) deleted text end "minimum guarantee county" means any metropolitan county or eligible county
that is participating in the joint powers agreement under subdivision 3, whose proportion
of the annual sales tax revenue under this section collected within that county is less
than or equal to three percent deleted text begin ; and
deleted text end

deleted text begin (5) "population" means the population, as defined in section 477A.011, subdivision
3, estimated or established by July 15 of the year prior to the calendar year in which
the representatives will serve on the Grant Evaluation and Ranking System Committee
established under subdivision 5 deleted text end .

Sec. 2.

Minnesota Statutes 2014, section 297A.992, subdivision 4, is amended to read:

Subd. 4.

Joint powers board.

(a) The joint powers board must consist of one
or more commissioners of each county that is in the metropolitan transportation area,
appointed by its county board, and the chair of the Metropolitan Council, who must have
voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
and duties provided in this section and section 471.59.

(b) The joint powers board may utilize no more than three-fourths of one percent of
the proceeds of the taxes imposed under this section for ordinary administrative expenses
incurred in carrying out the provisions of this section. Any additional administrative
expenses must be paid by the participating counties.

(c) The joint powers board may establish a technical advisory group deleted text begin that is separate
from the GEARS Committee deleted text end . The group must consist of representatives of cities, counties,
or public agencies, including the Metropolitan Council. The technical advisory group
must be used solely for technical consultation purposes.

Sec. 3.

Minnesota Statutes 2014, section 297A.992, subdivision 5, is amended to read:

Subd. 5.

Grant application and awards deleted text begin ; Grant Evaluation and Ranking System
(GEARS) Committee deleted text end .

(a) The joint powers board shall establish a grant application
process and identify the amount of available funding for grant awards. Grant applications
must be submitted in a form prescribed by the joint powers board. An applicant must
provide, in addition to all other information required by the joint powers board, the
estimated cost of the project, the amount of the grant sought, possible sources of funding
in addition to the grant sought, and identification of any federal funds that will be utilized
if the grant is awarded. A grant application seeking transit capital funding must identify
the source of money necessary to operate the transit improvement.

(b) The joint powers board shall establish a timeline and procedures for the award of
grants, and may award grants only to the state and political subdivisions. The board shall
define objective criteria for the award of grants, which must include, but not be limited to,
consistency with the most recent version of the transportation policy plan adopted by the
Metropolitan Council under section 473.146. The joint powers board shall maximize the
availability and use of federal funds in projects funded under this section.

(c) deleted text begin The joint powers board shall establish a GEARS Committee, which must consist
of:
deleted text end

deleted text begin (1) one county commissioner from each county that is in the metropolitan
transportation area, appointed by its county board;
deleted text end

deleted text begin (2) one elected city representative from each county that is in the metropolitan
transportation area;
deleted text end

deleted text begin (3) one additional elected city representative from each county for every additional
400,000 in population, or fraction of 400,000, in the county that is above 400,000 in
population; and
deleted text end

deleted text begin (4) the chair of the Metropolitan Council Transportation Committee.
deleted text end

deleted text begin (d) Each city representative must be elected at a meeting of cities in the metropolitan
transportation area, which must be convened for that purpose by the Association of
Metropolitan Municipalities.
deleted text end

deleted text begin (e) The committee shall evaluate grant applications following objective criteria
established by the joint powers board, and must provide to the joint powers board a
selection list of transportation projects that includes a priority ranking.
deleted text end

deleted text begin (f) deleted text end A grant award for a transit project located within the metropolitan area, as defined
in section 473.121, subdivision 2, may be funded only after the Metropolitan Council
reviews the project for consistency with the transit portion of the Metropolitan Council
policy plan and one of the following occurs:

(1) the Metropolitan Council finds the project to be consistent;

(2) the Metropolitan Council initially finds the project to be inconsistent, but after a
good faith effort to resolve the inconsistency through negotiations with the joint powers
board, agrees that the grant award may be funded; or

(3) the Metropolitan Council finds the project to be inconsistent, and submits the
consistency issue for final determination to a panel, which determines the project to be
consistent. The panel is composed of a member appointed by the chair of the Metropolitan
Council, a member appointed by the joint powers board, and a member agreed upon by
both the chair and the joint powers board.

deleted text begin (g) deleted text end new text begin (d) new text end Grants must be funded by the proceeds of the taxes imposed under this
section new text begin and under section 297A.9925 new text end , bonds, notes, or other obligations issued by the
joint powers board under subdivision 7.

deleted text begin (h) Notwithstanding the provisions of this section except subdivision 6a, of
the revenue collected under this section, the joint powers board shall allocate to the
Metropolitan Council, in fiscal years 2012 and 2013, an amount not less than 75 percent of
the net cost of operations for those transitways that were receiving metropolitan sales tax
funds through an operating grant agreement on June 30, 2011.
deleted text end

deleted text begin (i) The Metropolitan Council shall expend any funds allocated under paragraph (h)
for the operations of the specified transitways solely within those counties that are in the
metropolitan transportation area.
deleted text end

deleted text begin (j) deleted text end new text begin (e) new text end Nothing in deleted text begin paragraph (h) or (i) deleted text end new text begin this section new text end prevents grant awards to
the Metropolitan Council for capital and operating assistance for transitways and
park-and-ride facilities.

Sec. 4.

Minnesota Statutes 2014, section 297A.992, subdivision 6, is amended to read:

Subd. 6.

Allocation of grant awards.

(a) The board must allocate grant awards
only for the following transit purposes:

deleted text begin (i) deleted text end new text begin (1) new text end capital improvements to transitways, including, but not limited to, new text begin highway
bus rapid transit, new text end commuter rail rolling stock, light rail vehicles, and transitway buses;

deleted text begin (ii) deleted text end new text begin (2) new text end capital costs for park-and-ride facilities, as defined in section 174.256,
subdivision 2;

deleted text begin (iii) deleted text end new text begin (3) new text end feasibility studies, planning, alternatives analyses, environmental studies,
engineering, property acquisition for transitway purposes, and construction of transitways new text begin .
A grant must not exceed an amount equal to total capital cost less the amounts of expected
contributions by regional railroad authorities and the federal government new text end ; deleted text begin and
deleted text end

deleted text begin (iv) deleted text end new text begin (4) 50 percent of net new text end operating deleted text begin assistance for deleted text end new text begin cost of new text end transitways new text begin that commenced
revenue operations before September 30, 2015;
new text end

new text begin (5) 100 percent of net operating cost of the Robert Street transitway and Riverview
Corridor transitway; and
new text end

new text begin (6) capital and operating costs for any transitway improvement or transitway new text end .

(b) The joint powers board must annually award grants to each minimum guarantee
county in an amount no less than the amount of sales tax revenue collected within that
county.

deleted text begin (c) No more than 1.25 percent of the total awards may be annually allocated for
planning, studies, design, construction, maintenance, and operation of pedestrian programs
and bicycle programs and pathways.
deleted text end

Sec. 5.

new text begin [297A.9925] METROPOLITAN TRANSIT IMPROVEMENT AREA
TRANSIT SALES AND USE TAX; RATE; IMPOSITION; USES; PRIORITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have
the following meanings:
new text end

new text begin (1) "metropolitan transit improvement area" or "area" means the counties of Anoka,
Dakota, Hennepin, Ramsey, and Washington;
new text end

new text begin (2) "Metropolitan Council" or "council" means the Metropolitan Council established
by section 473.123; and
new text end

new text begin (3) "local governmental unit" means any county, city, town, school district, special
district, or other political subdivisions or public corporation, other than the council or a
metropolitan agency, lying in whole or in part within the metropolitan transit improvement
area.
new text end

new text begin Subd. 2. new text end

new text begin Metropolitan transit improvement area transit sales tax imposition;
rate. new text end

new text begin (a) Notwithstanding section 297A.99, subdivisions 1, 2, and 3, 477A.016, or any
other law, a metropolitan area transit sales and use tax is imposed at a rate of three-quarters
of one percent on retail sales and uses taxable under this chapter occurring within the
metropolitan transit improvement area.
new text end

new text begin (b) The taxes imposed under this subdivision are not included in determining if the
total tax on lodging in the city of Minneapolis exceeds the maximum allowed tax under
Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, or in
determining a tax that may be imposed under any other limitations.
new text end

new text begin Subd. 3. new text end

new text begin Administration; collection; enforcement. new text end

new text begin Except as otherwise provided
in this section, the provisions of section 297A.99, subdivisions 4 and 6 to 12a, govern the
administration, collection, and enforcement of the tax authorized under this section.
new text end

new text begin Subd. 4. new text end

new text begin Distribution of net revenues. new text end

new text begin After deducting costs of collection and other
costs under section 297A.99, subdivision 11, the commissioner of revenue shall remit:
new text end

new text begin (1) to the Counties Transit Improvement Board, an amount equal to 8.5 percent of
the net proceeds of the tax imposed under subdivision 2; and
new text end

new text begin (2) to the Metropolitan Council, the remaining proceeds.
new text end

new text begin Subd. 5. new text end

new text begin General purpose; consistency with transportation policy plan. new text end

new text begin (a) The
Metropolitan Council shall utilize the proceeds of the tax imposed under subdivision
2 for transit purposes described under subdivision 7, within the metropolitan transit
improvement area.
new text end

new text begin (b) Projects funded with the metropolitan transit improvement area transit sales and
use tax proceeds must not be inconsistent with the long-range transportation policy plan
adopted by the council under section 473.146 and located within the transit improvement
area.
new text end

new text begin Subd. 6. new text end

new text begin Priorities. new text end

new text begin The council shall allocate revenues from the taxes imposed
under this section in conformance with the following priority order:
new text end

new text begin (1) payment of debt service necessary for the fiscal year on bonds or other
obligations secured by revenues from the tax imposed in this section;
new text end

new text begin (2) proportional distribution of an amount equal to one-eighth of the total net
proceeds of the taxes imposed under subdivision 2 and under section 297A.992,
subdivision 2, so that the share of each county in the metropolitan transit improvement
area is based on the proportion of taxes generated in that county. Grant awards under
this clause must be used by Hennepin County only for transit purposes, but by all other
counties for any transit purpose or any transportation purpose that has a nexus to transit or
transit-oriented development; and
new text end

new text begin (3) as otherwise authorized under subdivision 7.
new text end

new text begin Subd. 7. new text end

new text begin Use of tax proceeds. new text end

new text begin (a) After deducting the amount necessary under
subdivision 6, clauses (1) and (2), the council shall allocate remaining revenues from the
tax imposed in this section for the following purposes:
new text end

new text begin (1) operating and capital costs to preserve existing bus services that are in
conformance with regional transit performance standards as specified in the council's
transportation policy plan;
new text end

new text begin (2) 100 percent of the net operating costs of arterial bus rapid transit lines in operation
on September 30, 2015, and 50 percent of the net operating costs of other transitways;
new text end

new text begin (3) grants required under paragraph (b);
new text end

new text begin (4) operating and capital costs for transit expansion in accordance with the transit
portion of the council's policy transit plan, including, but not limited to:
new text end

new text begin (i) expansion and upgrades of regular route and commuter bus service provided
by metropolitan transit and replacement services under section 473.388, with overall
expansion of service by an annual average rate of four percent;
new text end

new text begin (ii) development of arterial bus rapid transit, transitways, and streetcar systems; and
new text end

new text begin (iii) maintenance of affordable transit fares;
new text end

new text begin (5) operating and capital costs for expansion and improvement of regional
transitways and streetcars;
new text end

new text begin (6) to transit authorities to establish, replace, or modify transit shelters to conform
with design specifications and maintenance requirements within the meaning of section
473.41;
new text end

new text begin (7) as grants in the annual amount of $390,000, payable by July 31, to transportation
management organizations that provide services exclusively or primarily in (1) each city
of the first class, as provided under section 410.01; and (2) the city having the highest
population as of the effective date of this section located along the marked Interstate
Highway 494 corridor. Permissible uses include administrative expenses and programming
and service expansion, including but not limited to staffing, communications, outreach and
education program development, and operations management;
new text end

new text begin (8) for financial assistance to replacement service providers under section 473.388
in the amount of $1,500,000 in fiscal year 2016 and $1,500,000 in fiscal year 2017, to
implement a demonstration project that provides regular route transit or express bus
service between municipalities in the metropolitan transportation improvement area,
excluding cities of the first class. The council shall allocate the appropriated funds as
directed by the replacement service providers who shall collectively identify one or more
demonstration projects for financial assistance under this section and submit a notification
of the allocation to the Metropolitan Council. Criteria for evaluating and identifying
demonstration projects must include but are not limited to:
new text end

new text begin (i) scope of service offering improvements;
new text end

new text begin (ii) integration with transit facilities and major business, retail, or suburban centers;
new text end

new text begin (iii) extent to which a proposed route complements existing transit service; and
new text end

new text begin (iv) density of employment along a proposed route;
new text end

new text begin (9) to the Center for Transportation Studies, University of Minnesota, $500,000
annually for research to improve accessibility, operational efficiency, and safety of transit
systems; and
new text end

new text begin (10) any other costs payable in accordance with subdivisions 5, 6, and 7, which
may include, but are not limited to, transit operations, capital improvements, design,
engineering and environmental work, acquisition of real property, transit planning and
feasibility studies, and to provide grants to local governmental units for transit purposes,
including streetcars, or for bicycle and pedestrian projects.
new text end

new text begin (b) The council shall make available an amount equal to ten percent of the revenues
from the tax imposed in this section and in section 297A.992 through grants to local
units of government within the metropolitan transit improvement area for construction
and maintenance of regional bicycle, trail, and pedestrian infrastructure for safe routes to
school infrastructure and for active transportation programs under section 174.38.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2015, and applies in the counties of Anoka, Dakota, Hennepin, Ramsey,
and Washington.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 473.4051, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

ARTICLE 6

OTHER TAXES, FEES, AND TRANSFERS

Section 1.

Minnesota Statutes 2014, section 115A.908, is amended to read:

115A.908 MOTOR VEHICLE TRANSFER FEE.

Subdivision 1.

Fee charged.

new text begin (a) new text end A fee of $10 shall be charged on the initial
registration and each subsequent transfer of title within the state, other than transfers for
resale purposes, of every motor vehicle weighing more than 1,000 pounds. The fee shall
be collected by the commissioner of public safety. Registration plates or certificates
of title may not be issued by the commissioner of public safety for the ownership or
operation of a motor vehicle subject to the transfer fee unless the fee is paid. The fee may
not be charged on the transfer of:

(1) previously registered vehicles if the transfer is to the same person;

(2) vehicles subject to the conditions specified in section 297A.70, subdivision 2; or

(3) vehicles purchased in another state by a resident of another state if more than 60
days have elapsed after the date of purchase and the purchaser is transferring title to this
state and has become a resident of this state after the purchase.

new text begin (b) A surcharge of $10 is imposed on each fee charged under paragraph (a).
new text end

Subd. 2.

Deposit of revenue.

new text begin (a) Fee new text end revenue collected under this section shall be
credited to the environmental fund.

new text begin (b) The commissioner of transportation shall deposit the proceeds of the surcharge
as follows:
new text end

new text begin (1) 50 percent in the small city streets and bridges account under section 174.54,
subdivision 1; and
new text end

new text begin (2) 50 percent in the larger city streets and bridges account under section 174.54,
subdivision 2.
new text end

Sec. 2.

Minnesota Statutes 2014, section 161.081, subdivision 1, is amended to read:

Subdivision 1.

Distribution of five percent.

deleted text begin (a) deleted text end Pursuant to article 14, section 5, of
the Constitution, five percent of the net highway user tax distribution fund is set aside, and
apportioned deleted text begin to the county state-aid highway fund.
deleted text end

deleted text begin (b) That apportionment is further distributed deleted text end as follows:

(1) deleted text begin 30.5 percent to the town road account created in section 162.081;
deleted text end

deleted text begin (2) 16 percent to the town bridge account, which is created in the state treasury deleted text end new text begin 56.5
percent to the county state-aid highway fund, consisting of: (i) 30.5 percent to the town
road account created in section 162.081; (ii) 16 percent to the town bridge account created
in the state treasury; and (iii) ten percent to the county municipal accounts for purposes
described in section 162.08 new text end ; and

deleted text begin (3) 53.5 percent to the flexible highway account created in subdivision 3 deleted text end new text begin (2) 43.5
percent to the municipal state-aid street fund new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 3.

Minnesota Statutes 2014, section 161.082, subdivision 1, is amended to read:

Subdivision 1.

new text begin Creation of account; new text end rules.

new text begin (a) The county turnback account is
created in the state treasury, consisting of money allotted or appropriated to the account
from the trunk highway fund or from any other source that will be used for the restoration
of trunk highways that have reverted or that will revert to counties.
new text end

new text begin (b) new text end Except as provided in this section deleted text begin and in section 161.081 deleted text end , all money accruing
to the county turnback account shall be expended in accordance with rules of the
commissioner of transportation in paying a county for the restoration of former trunk
highways, or portions thereof, that have reverted to the county in accordance with law, and
have become a part of the county state-aid highway system.

new text begin (c) The legislature finds that restoration of trunk highways that have reverted or
will revert to counties is a trunk highway purpose within the meaning of the Minnesota
Constitution, article XIV, section 2.
new text end

Sec. 4.

Minnesota Statutes 2014, section 161.082, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Budget submission. new text end

new text begin As part of each biennial budget submission to the
legislature, the commissioner shall include a request for an appropriation to the county
turnback account.
new text end

Sec. 5.

Minnesota Statutes 2014, section 161.083, is amended to read:

161.083 MUNICIPAL TURNBACK ACCOUNT, EXPENDITURE.

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin (a) The municipal turnback account is created
in the state treasury, consisting of money allotted or appropriated to the account from the
trunk highway fund or from any other source that will be used for the restoration of trunk
highways that have reverted or that will revert to cities.
new text end

new text begin (b) new text end Except as deleted text begin hereinafter deleted text end provided new text begin in this section new text end , all money accruing to the
municipal turnback account shall be expended in accordance with rules of the
commissioner of transportation in paying a municipality having a population of 5,000 or
more for the reconstruction and improvement of former trunk highways, or portions
thereof, that have reverted to such municipality in accordance with law, and have become
a part of the municipal state-aid street system.

new text begin (c) The legislature finds that restoration of trunk highways that have reverted or
will revert to cities is a trunk highway purpose within the meaning of the Minnesota
Constitution, article XIV, section 2.
new text end

new text begin Subd. 2. new text end

new text begin Biennial budget submission. new text end

new text begin As part of each biennial budget submission
to the legislature, the commissioner shall include a request for an appropriation to the
municipal turnback account.
new text end

Sec. 6.

Minnesota Statutes 2014, section 162.07, subdivision 1a, is amended to read:

Subd. 1a.

Apportionment sum and excess sum.

(a) For purposes of this
subdivision, "distribution amount" means the amount identified in section 162.06,
subdivision 1, after the deductions provided for in section 162.06 for administrative costs,
disaster account, research account, and state park road account.

(b) The apportionment sum is calculated deleted text begin by subtracting the excess sum, as calculated
in paragraph (c), from deleted text end new text begin as 68 percent of new text end the distribution amount.

(c) The excess sum is calculated as deleted text begin the sum of revenue within deleted text end new text begin 32 percent of new text end the
distribution amount deleted text begin : deleted text end new text begin .
new text end

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

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

deleted text begin (3) attributed to that portion of the motor vehicle sales tax revenue in excess of the
percentage allocated to the county state-aid highway fund in fiscal year 2007.
deleted text end

deleted text begin (d) For purposes of this subdivision, the United States Consumer Price Index
identified in paragraph (c) is for all urban consumers, United States city average, as
determined by the United States Department of Labor.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2015.
new text end

Sec. 7.

Minnesota Statutes 2014, section 168.012, subdivision 1c, is amended to read:

Subd. 1c.

Payment of administrative, plate, and filing fee.

The annual
administrative fee for a tax-exempt vehicle under this section is $5. The license plate
fee for a tax-exempt vehicle, except a trailer, is deleted text begin $10 deleted text end new text begin $12.50 new text end for two plates per vehicle,
payable only on the first tax-exempt registration of the vehicle. The registration period for
a tax-exempt vehicle is biennial. The administrative fee is due on March 1 biennially and
payable the preceding January 1, with validating stickers issued at time of payment.

Sec. 8.

Minnesota Statutes 2014, section 168.017, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Refunds; grace period. new text end

new text begin The registrar shall cancel registration and provide
a full refund on a vehicle registered under this section if an application for refund is
submitted within the first ten days of the month commencing the registration period for
which the refund is submitted.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies to registration periods starting on or after January 1, 2016.
new text end

Sec. 9.

Minnesota Statutes 2014, section 168.12, subdivision 2, is amended to read:

Subd. 2.

Amateur radio licensee; special plates, rules.

(a) The commissioner shall
issue amateur radio plates to an applicant who:

(1) is an owner of a passenger automobile or recreational vehicle;

(2) is a resident of this state;

(3) holds an official amateur radio station license or a citizens radio service class D
license, in good standing, issued by the Federal Communications Commission;

(4) pays the registration tax required under section 168.013;

(5) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end for each set of special plates and any other fees required
by this chapter; and

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

(b) In lieu of the registration number required for identification under subdivision 1,
the plates must indicate the official amateur call letters of the applicant, as assigned by the
Federal Communications Commission, and the words "AMATEUR RADIO."

(c) This provision for the issue of special plates applies only if the applicant's motor
vehicle is already registered in Minnesota so that the applicant has valid regular Minnesota
plates issued for that motor vehicle under which to operate it during the time that it will
take to have the necessary special plates made.

(d) If owning more than one motor vehicle of the type specified in this subdivision,
the applicant may apply for special plates for each motor vehicle and, if each application
complies with this subdivision, the commissioner shall furnish the applicant with
the special plates, indicating the official amateur call letters and other distinguishing
information as the commissioner considers necessary, for each of the motor vehicles.

(e) The commissioner may make reasonable rules governing the use of the special
plates as will assure the full compliance by the owner of the special plates, with all existing
laws governing the registration of motor vehicles and the transfer and use of the plates.

(f) Despite any contrary provision of subdivision 1, the special plates issued under this
subdivision may be transferred by an owner to another motor vehicle listed in paragraph
(a) and registered to the same owner, upon the payment of a fee of $5. The commissioner
must be notified before the transfer and may prescribe a format for the notification.

Sec. 10.

Minnesota Statutes 2014, section 168.12, subdivision 2b, is amended to read:

Subd. 2b.

Firefighters; special plates, rules.

(a) The commissioner shall issue
special plates, or a single license plate in the case of a motorcycle plate, to any applicant
who:

(1) is a member of a fire department receiving state aid under chapter 69, has a
letter from the fire chief, and is an owner of a passenger automobile, a one-ton pickup
truck, or a motorcycle;

(2) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end and any other fees required by this chapter;

(3) pays the registration tax required by this chapter for the motor vehicle; and

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

(b) In lieu of the identification required under subdivision 1, the special plates must
bear an emblem of a Maltese Cross together with any numbers or characters prescribed by
the commissioner.

(c) Special plates issued under this subdivision may only be used during the period
that the owner of the motor vehicle is a member of a fire department as specified in this
subdivision. When the individual to whom the special plates were issued is no longer a
member of a fire department or when the motor vehicle ownership is transferred, the
owner shall remove the special plates from the motor vehicle. If the commissioner
receives written notification that an individual is no longer qualified for these special
plates, the commissioner shall invalidate the plates and notify the individual of this
action. The individual may retain the plate only upon demonstrating compliance with the
qualifications of this subdivision. Upon removal or invalidation of the special plates or
special motorcycle plate, the owner or purchaser of the motor vehicle shall obtain regular
plates, a regular motorcycle plate, or special plates for the proper registration classification
for the motor vehicle.

(d) A special motorcycle license plate issued under this subdivision must be the
same size as a standard motorcycle license plate.

(e) Upon payment of a fee of $5, plates issued under this subdivision for a passenger
automobile or truck may be transferred to another passenger automobile or truck owned
or jointly owned by the person to whom the plates were issued. On payment of a fee of
$5, a plate issued under this subdivision for a motorcycle may be transferred to another
motorcycle owned or jointly owned by the person to whom the plate was issued.

(f) The commissioner may adopt rules under the Administrative Procedure Act,
sections 14.001 to 14.69, to govern the issuance and use of the special plates authorized
in this subdivision.

Sec. 11.

Minnesota Statutes 2014, section 168.12, subdivision 2c, is amended to read:

Subd. 2c.

National Guard; special plates, rules.

(a) The commissioner shall
issue special plates to any applicant who:

(1) is a regularly enlisted, commissioned, or retired member of the Minnesota
National Guard, other than an inactive member who is not a retired member, and is an
owner of a passenger automobile;

(2) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end and any other fees required by this chapter;

(3) pays the registration tax required by this chapter; and

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

(b) The adjutant general shall design the emblem for these special plates subject to
the approval of the commissioner.

(c) Special plates issued under this subdivision may only be used during the period
that the owner of the motor vehicle is an active or retired member of the Minnesota National
Guard as specified in this subdivision. When the individual to whom the special plates
were issued is no longer an active or retired member of the Minnesota National Guard,
the special plates must be removed from the vehicle by the owner. If the commissioner
receives written notification that an individual is no longer qualified for these special plates,
the commissioner shall invalidate the plates and notify the individual of this action. The
individual may retain the plate only upon demonstrating compliance with the qualifications
of this subdivision. Upon removal or invalidation of the special plates, either the owner or
purchaser of the motor vehicle shall obtain regular plates for the motor vehicle.

(d) While the person is an active or retired member of the Minnesota National
Guard, plates issued pursuant to this subdivision may be transferred to another motor
vehicle owned by that individual upon payment of a fee of $5.

(e) For purposes of this subdivision, "retired member" means an individual placed on
the roll of retired officers or roll of retired enlisted members in the Office of the Adjutant
General under section 192.18 and who is not deceased.

(f) The commissioner may adopt rules under the Administrative Procedure Act to
govern the issuance and use of the special plates authorized by this subdivision.

Sec. 12.

Minnesota Statutes 2014, section 168.12, subdivision 2d, is amended to read:

Subd. 2d.

Ready Reserve; special plates, rules.

(a) The commissioner shall issue
special plates to an applicant who:

(1) is not eligible for special National Guard plates under subdivision 2c, is a
member of the United States armed forces ready reserve as described in United States
Code, title 10, section 10142 or 10143, or a retired reserve as described in United States
Code, title 10, section 10154, and is an owner of a passenger automobile;

(2) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end and any other fees required by this chapter;

(3) pays the registration tax required by this chapter; and

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

(b) The commissioner of veterans affairs shall design the emblem for these special
plates subject to the approval of the commissioner.

(c) Special plates issued under this subdivision may only be used during the period
that the owner of the motor vehicle is a member of the ready reserve. When the owner is
no longer a member, the special plates must be removed from the motor vehicle by the
owner. If the commissioner receives written notification that an individual is no longer
qualified for these special plates, the commissioner shall invalidate the plates and notify
the individual of this action. The individual may retain the plate only upon demonstrating
compliance with the qualifications of this subdivision. On removal or invalidation of the
special plates, either the owner or purchaser of the motor vehicle shall obtain regular
plates for the motor vehicle. While the owner is a member of the ready reserve, plates
issued under this subdivision may be transferred to another motor vehicle owned by that
individual on paying a fee of $5.

(d) The commissioner may adopt rules under the Administrative Procedure Act to
govern the issuance and use of the special plates authorized by this subdivision.

Sec. 13.

Minnesota Statutes 2014, section 168.12, subdivision 2e, is amended to read:

Subd. 2e.

Volunteer ambulance attendants; special plates.

(a) The commissioner
shall issue special license plates to an applicant who:

(1) is a volunteer ambulance attendant as defined in section 144E.001, subdivision
15, and owns a motor vehicle taxed as a passenger automobile;

(2) pays the registration tax required by this chapter for the motor vehicle;

(3) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end and any other fees required by this chapter; and

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

(b) An individual may use special plates issued under this subdivision only during
the period that the individual is a volunteer ambulance attendant. When the individual to
whom the special plates were issued ceases to be a volunteer ambulance attendant, the
individual shall remove each set of special plates issued. If the commissioner receives
written notification that an individual is no longer qualified for these special plates, the
commissioner shall invalidate the plates and notify the individual of this action. The
individual may retain the plate only upon demonstrating compliance with the qualifications
of this subdivision. When ownership of the motor vehicle is transferred, the individual
shall remove the special plates from that motor vehicle. On removal or invalidation of the
special plates, the owner or purchaser of the motor vehicle shall obtain regular plates for the
motor vehicle. Special plates issued under this subdivision may be transferred to another
motor vehicle owned by the volunteer ambulance attendant on payment of a fee of $5.

(c) The commissioner may adopt rules governing the design, issuance, and sale of
the special plates authorized by this subdivision.

Sec. 14.

Minnesota Statutes 2014, section 168.12, subdivision 2g, is amended to read:

Subd. 2g.

Retired firefighters; special plates.

(a) The commissioner shall issue
special retired firefighters plates to an applicant who:

(1) is a retired member of a fire department as defined in section 299N.01, subdivision
2, has a letter from the fire chief affirming that the applicant is a retired firefighter who
served ten or more years and separated in good standing, and is a registered owner of a
passenger automobile, a one-ton pickup truck, a recreational vehicle, or a motorcycle;

(2) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end for each set of license plates applied for along with
any other fees required by this chapter; and

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

(b) The commissioner shall design the special plate emblem so that it is
distinguishable from the emblem on firefighter special plates issued under subdivision 2b.

(c) On payment of a transfer fee of $5, plates issued under this subdivision may be
transferred to another passenger automobile, one-ton pickup truck, recreational vehicle, or
motorcycle registered to the individual to whom the special plates were issued.

(d) Fees collected under this subdivision must be credited to the vehicle services
operating account in the special revenue fund.

(e) This subdivision is exempt from section 168.1293.

Sec. 15.

Minnesota Statutes 2014, section 168.12, subdivision 5, is amended to read:

Subd. 5.

Additional fee.

(a) In addition to any fee otherwise authorized or any tax
otherwise imposed upon any vehicle, the payment of which is required as a condition to
the issuance of any plate or plates, the commissioner shall impose the fee specified in
paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate
or plates, except for plates issued to disabled veterans as defined in section 168.031 and
plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17,
for passenger automobiles. The commissioner shall issue graphic design plates only
for vehicles registered pursuant to section 168.017 and recreational vehicles registered
pursuant to section 168.013, subdivision 1g.

(b) Unless otherwise specified or exempted by statute, the following plate and
validation sticker fees apply for the original, duplicate, or replacement issuance of a
plate in a plate year:

License Plate				Single		Double
	Regular and Disability		$	deleted text begin 4.50 deleted text end new text begin 6.25 new text end	$	deleted text begin 6.00 deleted text end new text begin 12.50 new text end
	Special		$	8.50	$	deleted text begin 10.00 deleted text end new text begin 12.50 new text end
	Personalized (Replacement)		$	10.00	$	14.00
	Collector Category		$	13.50	$	15.00
	Emergency Vehicle Display		$	deleted text begin 3.00 deleted text end new text begin 6.25 new text end	$	deleted text begin 6.00 deleted text end new text begin 12.50 new text end
	Utility Trailer Self-Adhesive		$	2.50
	Vertical Motorcycle Plate		$	100.00		NA
Stickers
	Duplicate year		$	1.00	$	1.00
	International Fuel Tax Agreement		$	2.50

(c) For vehicles that require two of the categories above, the registrar shall only
charge the higher of the two fees and not a combined total.

Sec. 16.

Minnesota Statutes 2014, section 168.121, subdivision 1, is amended to read:

Subdivision 1.

Issuance and design.

Notwithstanding section 168.1293, the
commissioner shall issue special plates remembering victims of impaired drivers to an
applicant who:

(1) is a registered owner of a passenger automobile;

(2) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end for each set of license plates applied for; and

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

Sec. 17.

Minnesota Statutes 2014, section 168.123, subdivision 1, is amended to read:

Subdivision 1.

General requirements; fees.

(a) On payment of a fee of deleted text begin $10 deleted text end new text begin $12.50
new text end for each set of two plates, or for a single plate in the case of a motorcycle plate, payment
of the registration tax required by law, and compliance with other applicable laws relating
to vehicle registration and licensing, as applicable, the commissioner shall issue:

(1) special veteran's plates to an applicant who served in the active military service
in a branch of the armed forces of the United States or of a nation or society allied with the
United States in conducting a foreign war, was discharged under honorable conditions,
and is a registered owner of a passenger automobile, recreational motor vehicle, or
one-ton pickup truck, but which is not a commercial motor vehicle as defined in section
169.011, subdivision 16; or

(2) a veteran's special motorcycle plate as described in subdivision 2, paragraph (a),
(e), (f), (h), (i), (j), or (m), or another special plate designed by the commissioner to an
applicant who is a registered owner of a motorcycle and meets the criteria listed in this
paragraph and in subdivision 2, paragraph (a), (e), (f), (h), (i), (j), or (m). Plates issued
under this clause must be the same size as regular motorcycle plates. Special motorcycle
license plates issued under this clause are not subject to section 168.1293.

(b) The additional fee of deleted text begin $10 deleted text end new text begin $12.50 new text end is payable for each set of veteran's plates, is
payable only when the plates are issued, and is not payable in a year in which stickers are
issued instead of plates.

(c) The veteran must have a certified copy of the veteran's discharge papers,
indicating character of discharge, at the time of application. If an applicant served in the
active military service in a branch of the armed forces of a nation or society allied with the
United States in conducting a foreign war and is unable to obtain a record of that service
and discharge status, the commissioner of veterans affairs may certify the applicant as
qualified for the veterans' plates provided under this section.

Sec. 18.

Minnesota Statutes 2014, section 168.1235, subdivision 1, is amended to read:

Subdivision 1.

General requirements; fees.

(a) The commissioner shall issue a
special plate emblem for each plate to an applicant who:

(1) is a member of a congressionally chartered veterans service organization and
is a registered owner of a passenger automobile, pickup truck, van, or self-propelled
recreational vehicle;

(2) pays the registration tax required by law;

(3) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end for each set of two plates, and any other fees required
by this chapter; and

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

(b) The additional fee of deleted text begin $10 deleted text end new text begin $12.50 new text end is payable at the time of initial application for
the special plate emblem and when the plates must be replaced or renewed. An applicant
must not be issued more than two sets of special plate emblems for motor vehicles listed
in paragraph (a) and registered to the applicant.

(c) The applicant must present a valid card indicating membership in the American
Legion or Veterans of Foreign Wars.

Sec. 19.

Minnesota Statutes 2014, section 168.1255, subdivision 1, is amended to read:

Subdivision 1.

General requirements and procedures.

The commissioner shall
issue special veteran contribution plates or a single motorcycle plate to an applicant who:

(1) is a veteran, as defined in section 197.447;

(2) is a registered owner of a passenger automobile as defined in section 168.002,
subdivision 24, recreational vehicle as defined in section 168.002, subdivision 27, one-ton
pickup truck as defined in section 168.002, subdivision 21b, or motorcycle as defined in
section 168.002, subdivision 19;

(3) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end to cover the costs of handling and manufacturing the
plates;

(4) pays the registration tax required under section 168.013;

(5) pays the fees required under this chapter;

(6) pays an additional onetime World War II memorial contribution of $30, which
the department shall retain until all start-up costs associated with the development and
issuing of the plates have been recovered, after which the commissioner shall deposit
contributions in the World War II donation match account; and

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

Sec. 20.

Minnesota Statutes 2014, section 168.128, subdivision 2, is amended to read:

Subd. 2.

Plates.

(a) A person who operates a limousine for other than personal use
shall register the motor vehicle as provided in this section. A person who operates a
limousine for personal use may apply for limousine plates.

(b) The commissioner shall issue limousine plates to the registered owner of a
limousine who:

(1) certifies that an insurance policy or policies under section 65B.135, in the
minimum aggregate amount required under that section, is in effect for the entire period
of the registration;

(2) provides the commissioner with proof that the passenger automobile registration
tax and a deleted text begin $10 deleted text end new text begin $12.50 new text end fee have been paid for each limousine receiving limousine plates; and

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

(c) The limousine plates must be designed to specifically identify the vehicle as a
limousine and must be clearly marked with the letters "LM." Limousine plates may not be
transferred upon sale of the limousine, but may be transferred to another limousine owned
by the same person upon notifying the commissioner and paying a $5 transfer fee.

Sec. 21.

Minnesota Statutes 2014, section 168.1291, subdivision 4, is amended to read:

Subd. 4.

Fees.

Despite section 168.12, subdivisions 2b to 2e; 168.123; or 168.129,
the commissioner shall charge a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end for each set of plates issued under
this section.

Sec. 22.

Minnesota Statutes 2014, section 168.1295, subdivision 1, is amended to read:

Subdivision 1.

General requirements and procedures.

(a) The commissioner shall
issue state parks and trails plates to an applicant who:

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

(2) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end to cover the costs of handling and manufacturing the
plates;

(3) pays the registration tax required under section 168.013;

(4) pays the fees required under this chapter;

(5) contributes a minimum of $50 annually to the state parks and trails donation
account established in section 85.056; and

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

(b) The state parks and trails plate application must indicate that the contribution
specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
and that the applicant may make an additional contribution to the account.

(c) State parks and trails plates may be personalized according to section 168.12,
subdivision 2a.

Sec. 23.

Minnesota Statutes 2014, section 168.1296, subdivision 1, is amended to read:

Subdivision 1.

General requirements and procedures.

(a) The commissioner shall
issue critical habitat plates to an applicant who:

(1) is a registered owner of a passenger automobile or recreational vehicle;

(2) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end to cover the costs of handling and manufacturing the
plates;

(3) pays the registration tax required under section 168.013;

(4) pays the fees required under this chapter;

(5) contributes a minimum of $30 annually to the Minnesota critical habitat private
sector matching account established in section 84.943; and

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

(b) The critical habitat plate application must indicate that the annual contribution
specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
and that the applicant may make an additional contribution to the account.

(c) Owners of recreational vehicles under paragraph (a), clause (1), are eligible
only for special critical habitat license plates for which the designs are selected under
subdivision 2, on or after January 1, 2006.

(d) Special critical habitat license plates, the designs for which are selected under
subdivision 2, on or after January 1, 2006, may be personalized according to section
168.12, subdivision 2a.

Sec. 24.

Minnesota Statutes 2014, section 168.1297, subdivision 1, is amended to read:

Subdivision 1.

General requirements and procedures.

The commissioner shall
issue special "Rotary member" plates to an applicant who:

(1) is a registered owner of a passenger automobile;

(2) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end to cover the costs of handling and manufacturing the
plates;

(3) pays the registration tax required under section 168.013;

(4) pays the fees required under this chapter;

(5) submits proof to the commissioner that the applicant is a member of Rotary
International; and

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

Sec. 25.

Minnesota Statutes 2014, section 168.1298, subdivision 1, is amended to read:

Subdivision 1.

General requirements and procedures.

(a) The commissioner shall
issue special "Support Our Troops" license plates to an applicant who:

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

(2) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end to cover the costs of handling and manufacturing the
plates;

(3) pays the registration tax required under section 168.013;

(4) pays the fees required under this chapter;

(5) contributes a minimum of $30 annually to the Minnesota "Support Our Troops"
account established in section 190.19; and

(6) complies with laws and rules governing registration and licensing of vehicles
and drivers.

(b) The license application under this section must indicate that the annual
contribution specified under paragraph (a), clause (5), is a minimum contribution to receive
the plates and that the applicant may make an additional contribution to the account.

Sec. 26.

Minnesota Statutes 2014, section 168.1299, subdivision 1, is amended to read:

Subdivision 1.

Issuance.

Notwithstanding section 168.1293, the commissioner shall
issue special Minnesota golf plates or a single motorcycle plate to an applicant who:

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

(2) pays a fee of deleted text begin $10 deleted text end new text begin $12.50 new text end and any other fees required by this chapter;

(3) contributes a minimum of $30 annually after January 1, 2017, to the Minnesota
Section PGA Foundation account; and

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

Sec. 27.

Minnesota Statutes 2014, section 168.27, subdivision 22, is amended to read:

Subd. 22.

Dealer license for trailers, motorized bicycles; plates, fees;
exemptions.

Any person, copartnership, or corporation having a permanent enclosed
commercial building or structure either owned in fee or leased and engaged in the
business, either exclusively or in addition to any other occupation, of selling motorized
bicycles, boat trailers, horse trailers, or snowmobile trailers, may apply to the registrar
for a dealer's license. Upon payment of a $10 fee the registrar shall license the applicant
as a dealer for the remainder of the calendar year in which the application was received.
The license may be renewed on or before the second day of January of each succeeding
year by payment of a fee of $10. The registrar shall issue to each dealer, upon request
of the dealer, dealer plates as provided in subdivision 16 upon payment of deleted text begin $5 deleted text end new text begin $6.25 new text end for
each plate, and the plates may be used in the same manner and for the same purposes as
is provided in subdivision 16. Except for motorized bicycle dealers, the registrar shall
also issue to the dealer, upon request of the dealer, "in-transit" plates as provided in
subdivision 17 upon payment of a fee of $5 for each plate. This subdivision does not
abrogate any of the provisions of this section relating to the duties, responsibilities, and
requirements of persons, copartnerships, or corporations engaged in the business, either
exclusively or in addition to other occupations, of selling motor vehicles or manufactured
homes, except that a seller of boat trailers, utility trailers, or snowmobile trailers who
is licensed under this subdivision is not required to have a contract or franchise with a
manufacturer or distributor of new boat trailers, utility trailers, or new snowmobile trailers
the seller proposes to sell, broker, wholesale, or auction. This section does not require a
manufacturer of snowmobile trailers whose manufacturing facility is located outside of
the metropolitan area as defined in section 473.121 to have a dealer's license to transport
the snowmobile trailers to dealers or retail outlets in the state.

Sec. 28.

Minnesota Statutes 2014, section 168.33, subdivision 2, is amended to read:

Subd. 2.

Deputy registrars.

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

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

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

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

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

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

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

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

(i) The deputy registrar shall keep records and make reports to the commissioner as
the commissioner requires. The records must be maintained at the offices of the deputy
registrar. The records and offices of the deputy registrar must at all times be open to the
inspection of the commissioner or the commissioner's agents. The deputy registrar shall
report to the commissioner by the next working day following receipt all registrations
made and taxes and fees collected by the deputy registrar.

(j) The filing deleted text begin fee deleted text end new text begin fees new text end imposed under subdivision 7 new text begin , paragraph (a), clauses (1) and
(3), new text end must be deposited in the treasury of the place for which appointed or, if not a public
official, a deputy shall retain the filing deleted text begin fee deleted text end new text begin fees new text end , but the registration tax deleted text begin and deleted text end new text begin , new text end any additional
fees for delayed registration deleted text begin the deputy registrar has collected deleted text end new text begin , and the surcharge imposed
under subdivision 7, paragraph (a), clause (2), new text end the deputy registrar shall deposit by the next
working day following receipt in an approved state depository to the credit of the state
through the commissioner of management and budget. The place for which the deputy
registrar is appointed through its governing body must provide the deputy registrar with
facilities and personnel to carry out the duties imposed by this subdivision if the deputy
is a public official. In all other cases, the deputy shall maintain a suitable facility for
serving the public.

Sec. 29.

Minnesota Statutes 2014, section 168.33, subdivision 7, is amended to read:

Subd. 7.

Filing fees new text begin and surcharge new text end ; allocations.

(a) In addition to all other
statutory fees and taxes deleted text begin , a filing fee of deleted text end :

(1) new text begin a new text end $6 new text begin filing fee new text end is imposed on every vehicle registration renewal, excluding pro
rate transactions; deleted text begin and
deleted text end

(2) new text begin a $10 surcharge is imposed on the fee for every vehicle registration renewal,
excluding pro rate transactions; and
new text end

new text begin (3) a new text end $10 new text begin filing fee new text end is imposed on every other type of vehicle transaction, including
new text begin motor carrier fuel tax licenses under sections 168D.05 and 168D.06, and new text end pro rate
transactions.

(b) Notwithstanding paragraph (a):

(1) a filing fee may not be charged for a document returned for a refund or for
a correction of an error made by the Department of Public Safety, a dealer, or a deputy
registrar; and

(2) no filing fee or other fee may be charged for the permanent surrender of a title
for a vehicle.

(c) The filing fee new text begin and surcharge new text end must be shown as a separate item on all registration
renewal notices sent out by the commissioner.

(d) The statutory fees and taxes, and the filing fees new text begin and surcharge new text end imposed under
paragraph (a) may be paid by credit card or debit card. The deputy registrar may collect a
surcharge on the statutory fees, taxes, new text begin statutory surcharge, new text end and filing fee not greater than
the cost of processing a credit card or debit card transaction, in accordance with emergency
rules established by the commissioner of public safety. The surcharge new text begin authorized by this
paragraph new text end must be used to pay the cost of processing credit and debit card transactions.

(e) The fees new text begin and surcharge new text end collected under deleted text begin this subdivision deleted text end new text begin paragraph (a) new text end by the
department must be allocated as follows:

(1) of the fees collected under paragraph (a), clause (1):

(i) $4.50 must be deposited in the vehicle services operating account; and

(ii) $1.50 must be deposited:

(A) in the driver and vehicle services technology account until sufficient funds have
been deposited in that account to cover all costs of administration, development, and
initial full deployment of the driver and vehicle services information system; and

(B) after completion of the deposit of funds under subitem (A) in the vehicle
services operating account; and

(2) new text begin of the surcharge collected under paragraph (a), clause (2):
new text end

new text begin (i) 50 percent must be deposited in the small city streets and bridges account under
section 174.54, subdivision 1; and
new text end

new text begin (ii) 50 percent must be deposited in the larger city streets and bridges account under
section 174.54, subdivision 2; and
new text end

new text begin (3) new text end of the fees collected under paragraph (a), clause deleted text begin (2) deleted text end new text begin (3) new text end :

(i) $3.50 must be deposited deleted text begin in the general fund deleted text end new text begin as follows:
new text end

new text begin (A) 50 percent to the small city streets and bridges account under section 174.54,
subdivision 1; and
new text end

new text begin (B) 50 percent to the larger city streets and bridges account under section 174.54,
subdivision 2 new text end ;

(ii) $5.00 must be deposited in the vehicle services operating account; and

(iii) $1.50 must be deposited:

(A) in the driver and vehicle services technology account until sufficient funds have
been deposited in that account to cover all costs of administration, development, and
initial full deployment of the driver and vehicle services information system; and

(B) after completion of the deposit of funds under subitem (A) in the vehicle services
operating account.

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a), clause (3), is effective the day following final
enactment. The remainder of the section is effective July 1, 2015.
new text end

Sec. 30.

Minnesota Statutes 2014, section 168.62, subdivision 3, is amended to read:

Subd. 3.

Special plates or certificate; fee; proceeds to deleted text begin highway user fund deleted text end new text begin vehicle
services operating account new text end .

At the same time that an owner or operator of intercity buses
registers them in Minnesota and obtains number plates therefor, the owner or operator
shall apply for special identification plates or certificates for the remainder of that fleet
of intercity buses. The registrar of motor vehicles shall design an appropriate plate or
identification certificate for this purpose which shall be issued upon the payment of a
fee of deleted text begin $10 deleted text end new text begin $12.50 new text end covering each intercity bus so identified. The proceeds of such fees
shall be deposited to the credit of the vehicle services operating account under section
299A.705, subdivision 1. No intercity bus shall at any time be operated in the state of
Minnesota without either Minnesota number plates or special identification plates or
certificates issued as herein provided.

Sec. 31.

Minnesota Statutes 2014, section 168A.07, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Fees. new text end

new text begin The filing fee to create a conditional registration shall conform with
the fee provided in section 168.33, subdivision 7, paragraph (a), clause (3). A subsequent
removal and clearing of a conditional registration is considered a separate transaction and
requires payment of an additional filing fee of the same amount, provided the removal and
clearing was initiated by a motor vehicle dealer licensed under section 168.27.
new text end

Sec. 32.

new text begin [174.54] CITY STREETS AND BRIDGES ACCOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Small city streets and bridges account. new text end

new text begin A small city streets and
bridges account is created as a special revenue account and established in the state
treasury, consisting of money allotted, appropriated, or transferred through gift or grant
for the account. Money in the account must be appropriated to the commissioner of
transportation by law and apportioned among all the cities in the state that are not eligible
to receive municipal state aid and do not receive municipal state aid. The commissioner
shall apportion the money so that each city receives of the total amount the percentage that
its population bears to the total population of small cities in this state. Money apportioned
under this section must be used for construction, reconstruction, improvement, operations,
and maintenance of city streets and bridges.
new text end

new text begin Subd. 2. new text end

new text begin Larger city streets and bridges account. new text end

new text begin A larger city streets and
bridges account is created as a special revenue account and established in the state
treasury, consisting of money allotted, appropriated, or transferred through gift or grant
for the account. Money in the account must be appropriated to the commissioner of
transportation by law and apportioned among all the cities in the state that are eligible
to receive municipal state aid. The commissioner shall apportion: (1) 50 percent of the
money so that each city receives of that amount the percentage that its population bears to
the total population of all cities that are eligible to receive municipal state aid; and (2)
50 percent of the money so that each city receives of that amount the percentage that its
money needs, as determined by the commissioner under section 162.13, subdivision 3,
bears to the total money needs of all cities that are eligible to receive municipal state aid.
Money apportioned under this section must be used for construction, reconstruction,
improvement, operations, and maintenance of city streets and bridges.
new text end

Sec. 33.

Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:

Subd. 3.

Motor vehicle lease sales tax revenue.

(a) For purposes of this
subdivision, "net revenue" means an amount equal to the revenues, including interest
and penalties, collected under this section, during the fiscal year; less deleted text begin $32,000,000
deleted text end new text begin $22,000,000 new text end in each fiscal year.

(b) On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of the deleted text begin net revenue deleted text end new text begin revenues new text end for the current fiscal year new text begin , including
interest and penalties collected during the fiscal year under this section new text end .

(c) On or after July 1 of the subsequent fiscal year, the commissioner of management
and budget shall transfer the deleted text begin net revenue deleted text end new text begin revenues new text end as estimated in paragraph (b) from the
general fund deleted text begin , as follows:
deleted text end

deleted text begin (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter deleted text end to
the county state-aid highway fund.

new text begin (d) new text end Notwithstanding any other law to the contrary, the commissioner of transportation
shall allocate the funds transferred under deleted text begin this clause deleted text end new text begin paragraph (b) new text end to the counties in the
metropolitan area, as defined in section 473.121, subdivision 4, deleted text begin excluding the counties of
Hennepin and Ramsey, deleted text end so that each county shall receive of such amount the percentage
that its population, as defined in section 477A.011, subdivision 3, estimated or established
by July 15 of the year prior to the current calendar year, bears to the total population of the
counties receiving funds under this clause deleted text begin ; and
deleted text end

deleted text begin (2) the remainder to the greater Minnesota transit account deleted text end . new text begin For the purposes of the
calculation in this paragraph, the population of Hennepin County shall first be multiplied
by 0.25, and the population of Ramsey County shall first be multiplied by 0.5.
new text end

new text begin (e) The revenues transferred under this subdivision do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section
297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
Constitution, article XI, section 15.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) through (c) are effective January 1, 2016, and
paragraph (d) is effective the day following final enactment.
new text end

Sec. 34.

Minnesota Statutes 2014, section 297B.03, is amended to read:

297B.03 EXEMPTIONS.

new text begin Subdivision 1. new text end

new text begin Scope. new text end

deleted text begin There is deleted text end new text begin The purchases or acquisitions of a motor vehicle
listed in this section are new text end specifically exempted from the provisions of this chapter and from
computation of the amount of tax imposed by it deleted text begin the following: deleted text end new text begin .
new text end

new text begin Subd. 2. new text end

new text begin Federal government. new text end

deleted text begin (1) deleted text end new text begin The new text end purchase or use, including use under a
lease purchase agreement or installment sales contract made pursuant to section 465.71,
of any motor vehicle by the United States and its agencies and instrumentalities and
by any person described in and subject to the conditions provided in section 297A.67,
subdivision 11 deleted text begin ; deleted text end new text begin is exempt.
new text end

new text begin Subd. 3. new text end

new text begin Purchased while a resident of another state. new text end

deleted text begin (2) deleted text end new text begin The new text end purchase or use
of any motor vehicle by any person who was a resident of another state or country at the
time of the purchase and who subsequently becomes a resident of Minnesota, provided
the purchase occurred more than 60 days prior to the date such person began residing in
the state of Minnesota and the motor vehicle was registered in the person's name in the
other state or country deleted text begin ; deleted text end new text begin is exempt.
new text end

new text begin Subd. 4. new text end

new text begin Interstate motor carriers. new text end

deleted text begin (3) deleted text end new text begin The new text end purchase or use of any motor vehicle
by any person making a valid election to be taxed under the provisions of section 297A.90 deleted text begin ;
deleted text end new text begin is exempt.
new text end

new text begin Subd. 5. new text end

new text begin Sale of a business. new text end

deleted text begin (4) deleted text end new text begin The new text end purchase or use of any motor vehicle previously
registered in the state of Minnesota when such transfer constitutes a transfer within the
meaning of section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or
1563(a) of the Internal Revenue Code deleted text begin ; deleted text end new text begin is exempt.
new text end

new text begin Subd. 6. new text end

new text begin Leased vehicles for interstate commerce. new text end

deleted text begin (5) deleted text end new text begin The new text end purchase or use of any
vehicle owned by a resident of another state and leased to a Minnesota-based private or
for-hire carrier for regular use in the transportation of persons or property in interstate
commerce provided the vehicle is titled in the state of the owner or secured party, and
that state does not impose a sales tax or sales tax on motor vehicles used in interstate
commerce deleted text begin ; deleted text end new text begin is exempt.
new text end

new text begin Subd. 7. new text end

new text begin Use in automotive training programs. new text end

deleted text begin (6) deleted text end new text begin The new text end purchase or use of a motor
vehicle by a private nonprofit or public educational institution for use as an instructional
aid in automotive training programs operated by the institution. "Automotive training
programs" includes motor vehicle body and mechanical repair courses but does not
include driver education programs deleted text begin ; deleted text end new text begin is exempt.
new text end

new text begin Subd. 8. new text end

new text begin Ambulance and emergency response. new text end

deleted text begin (7) deleted text end new text begin The new text end purchase of a motor
vehicle by an ambulance service licensed under section 144E.10 when that vehicle is
equipped and specifically intended for emergency response or for providing ambulance
service deleted text begin ; deleted text end new text begin is exempt.
new text end

new text begin Subd. 9. new text end

new text begin Library use. new text end

deleted text begin (8) deleted text end new text begin The new text end purchase of a motor vehicle by or for a public
library, as defined in section 134.001, subdivision 2, as a bookmobile or library delivery
vehicle deleted text begin ; deleted text end new text begin is exempt.
new text end

new text begin Subd. 10. new text end

new text begin Ready-mix concrete truck. new text end

deleted text begin (9) deleted text end new text begin The new text end purchase of a deleted text begin ready-mixed
deleted text end new text begin ready-mix new text end concrete truck deleted text begin ; deleted text end new text begin is exempt.
new text end

new text begin Subd. 11. new text end

new text begin Local government road maintenance. new text end

deleted text begin (10) deleted text end new text begin The new text end purchase or use of a
motor vehicle by a deleted text begin town deleted text end new text begin local government new text end for use exclusively for road maintenance,
including deleted text begin snowplows and dump trucks deleted text end new text begin a snowplow or dump truck new text end , but not including
deleted text begin automobiles, vans, or pickup trucks; deleted text end new text begin an automobile, van, or pickup truck is exempt. For
purposes of this subdivision "local government" means:
new text end

new text begin (1) a home rule charter or statutory city;
new text end

new text begin (2) a county;
new text end

new text begin (3) a town; or
new text end

new text begin (4) an instrumentality of a home rule charter or statutory city, county, or town.
An instrumentality may be a special district under section 6.465, or a special district
organized under a joint powers agreement under section 471.59, if the special district was
established by the county, city, or town, or the majority of the special district's governing
board is made up of:
new text end

new text begin (i) elected officials of the city, county, or town; or
new text end

new text begin (ii) the special district's members are appointed by the governing body of the city,
county, or town.
new text end

new text begin Subd. 12. new text end

new text begin Charitable use. new text end

deleted text begin (11) deleted text end new text begin The new text end purchase or use of a motor vehicle by a
corporation, society, association, foundation, or institution organized and operated
exclusively for charitable, religious, or educational purposes, except a public school,
university, or library new text begin is exempt new text end , but only if the vehicle is:

deleted text begin (i) deleted text end new text begin (1) new text end a truck, as defined in section 168.002, a bus, as defined in section 168.002, or
a passenger automobile, as defined in section 168.002, if the automobile is designed and
used for carrying more than nine persons including the driver; and

deleted text begin (ii) deleted text end new text begin (2) new text end intended to be used primarily to transport tangible personal property
or individuals, other than employees, to whom the organization provides service in
performing its charitable, religious, or educational purpose deleted text begin ; deleted text end new text begin .
new text end

new text begin Subd. 13. new text end

new text begin Transit use. new text end

deleted text begin (12) deleted text end new text begin The new text end purchase of a motor vehicle for use by a transit
provider exclusively to provide transit service is exempt if the transit provider is either (i)
receiving financial assistance or reimbursement under section 174.24 or 473.384, or (ii)
operating under section 174.29, 473.388, or 473.405 deleted text begin ; deleted text end new text begin is exempt.
new text end

new text begin Subd. 14. new text end

new text begin Job opportunity building zone. new text end

deleted text begin (13) deleted text end new text begin The new text end purchase or use of a motor
vehicle by a qualified business, as defined in section 469.310, located in a job opportunity
building zone, if the motor vehicle is principally garaged in the job opportunity building
zone and is primarily used as part of or in direct support of the person's operations carried
on in the job opportunity building zone. The exemption under this clause applies to sales,
if the purchase was made and delivery received during the duration of the job opportunity
building zone. The exemption under this clause also applies to any local sales and use
tax deleted text begin ; deleted text end new text begin is exempt.
new text end

new text begin Subd. 15. new text end

new text begin Certain purchases from a nonprofit. new text end

deleted text begin (14) deleted text end new text begin The new text end purchase of a leased
vehicle by the lessee who was a participant in a lease-to-own program new text begin is exempt if the
purchase is new text end from a charitable organization that is:

deleted text begin (i) deleted text end new text begin (1) new text end described in section 501(c)(3) of the Internal Revenue Code; and

deleted text begin (ii) deleted text end new text begin (2) new text end licensed as a motor vehicle lessor under section 168.27, subdivision 4 deleted text begin ; and deleted text end new text begin .
new text end

new text begin Subd. 16. new text end

new text begin Mobile medical unit. new text end

deleted text begin (15) deleted text end new text begin The new text end purchase of a motor vehicle used
exclusively as a mobile medical unit for the provision of medical or dental services by a
federally qualified health center, as defined under title 19 of the Social Security Act, as
amended by Section 4161 of the Omnibus Budget Reconciliation Act of 1990 new text begin is exempt new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2014.
new text end

Sec. 35.

Minnesota Statutes 2014, 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 60 deleted text end new text begin 58 new text end percent of the money collected and received must be deposited in the
highway user tax distribution fund, deleted text begin 36 deleted text end new text begin 34 new text end percent must be deposited in the metropolitan
area transit account under section 16A.88, and deleted text begin four deleted text end new text begin eight new text end percent must be deposited in the
greater Minnesota transit account under section 16A.88.

deleted text begin (c) It is the intent of the legislature that the allocations under paragraph (b) remain
unchanged for fiscal year 2012 and all subsequent fiscal years.
deleted text end

Sec. 36. new text begin CITY PARKING FACILITY FEE.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin "Parking facility" means a parking area or structure
having parking spaces at which motor vehicles are permitted to park for a fee, whether
publicly or privately owned, but does not include residential parking spaces or parking
spaces on a public street, the use of which is regulated by parking meters.
new text end

new text begin Subd. 2. new text end

new text begin Authorization to impose the fee. new text end

new text begin (a) The city of Minneapolis may
impose by ordinance a fee to be paid by the owner of each parking space located in a
parking facility within an area in the city of Minneapolis described as follows: west of the
Mississippi River, west of Interstate Highway 35W, north or east of Interstate Highway
94, and south of Plymouth Avenue.
new text end

new text begin (b) The city of St. Paul may impose by ordinance a fee to be paid by the owner of each
parking space located in a parking facility within an area in the city of St. Paul described
as follows: north of the Mississippi River, west of the Lafayette bridge parking lots, south
of Interstate Highway 35E and Interstate Highway 94, and east of Chestnut Street.
new text end

new text begin Subd. 3. new text end

new text begin Amount of fee. new text end

new text begin The amount of the fee may be uniform throughout the
district, or it may vary depending upon the nature and structure of the parking facility,
zoning, location, or other reasonable factors determined by the city.
new text end

new text begin Subd. 4. new text end

new text begin Administration of fee. new text end

new text begin A city imposing a parking fee on a parking facility
under this section shall administer the fee locally. A city may provide by ordinance that
the payment of the parking facility fee be made on a monthly, quarterly, or annual basis.
new text end

new text begin Subd. 5. new text end

new text begin Eligible uses of proceeds. new text end

new text begin Proceeds of the parking facility fee may be
utilized by the city imposing the fee for any eligible purpose under this section:
new text end

new text begin (1) pedestrian improvements, including, but not limited to, sidewalks, trees, planters,
landscaping, benches, lighting, trash receptacles, signage, wayfinding, and informational
kiosks;
new text end

new text begin (2) public plazas, including, but not limited to, improvements, operations,
maintenance, and programming, to include recreational and entertainment activities
designed to promote enjoyment of the city for Minnesotans and tourists of all ages. The
city of Minneapolis may designate proceeds for this purpose for downtown, or specifically
for Nicollet Mall, Peavey Plaza, or Downtown East Commons, or other similar locations.
The city of St. Paul may designate proceeds for this purpose for downtown, or specifically
for Rice Park, Mears Park, Wacouta Commons, Kellogg Park, Pedro Park, Central Station
Plaza, Cleveland Circle, or other similar locations; and
new text end

new text begin (3) transit and bicycle facilities, including, but not limited to:
new text end

new text begin (i) planning, design, engineering, property acquisition, and construction of the
downtown portion of a transit line or bicycle facility;
new text end

new text begin (ii) maintaining and acquiring equipment, transit vehicles, and related facilities, such
as maintenance facilities, that need not be located in the parking facilities fee area;
new text end

new text begin (iii) acquiring, improving, or constructing transit stations; and
new text end

new text begin (iv) acquiring or improving public space, including the construction and installation
of improvements to streets and sidewalks, decorative lighting and surfaces, and plantings
related to the downtown portion of a transit line or bicycle facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Under Minnesota Statutes, section 645.023, subdivision 1,
this section is effective on July 1, 2015, without the requirement of local approval.
new text end

Sec. 37. new text begin MOTOR VEHICLE SALES TAX REFUND.
new text end

new text begin For motor vehicle sales tax paid on purchases made after June 30, 2014, and before
the effective date of this section, on motor vehicles exempt under Minnesota Statutes,
section 297B.03, subdivision 11, the purchaser may apply for a refund using the mechanism
provided for refund of the general sales tax to purchasers under Minnesota Statutes, section
289A.50, subdivision 2a. Payment of a refund pursuant to this section must be made out
of the transit assistance fund and highway user fund in the same proportion provided for
deposit of tax proceeds for the fiscal year pursuant to section 297B.09, subdivision 1. The
amounts necessary to pay the refunds are appropriated out of the respective funds.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 38. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 161.081, subdivision 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

ARTICLE 7

EFFICIENCY MEASURES

Section 1.

Minnesota Statutes 2014, section 16E.15, subdivision 2, is amended to read:

Subd. 2.

Software sale fund.

(a) Except as provided in deleted text begin paragraph deleted text end new text begin paragraphs new text end (b)
new text begin and (c) new text end , proceeds deleted text begin of deleted text end new text begin from new text end the sale or licensing of software products or services by the chief
information officer must be credited to the MN.IT services revolving fund. If a state
agency other than the Office of MN.IT Services has contributed to the development of
software sold or licensed under this section, the chief information officer may reimburse
the agency by discounting computer services provided to that agency.

(b) Proceeds deleted text begin of deleted text end new text begin from new text end the sale or licensing of software products or services developed
by the Pollution Control Agency, or custom developed by a vendor for the agency, must be
credited to the environmental fund.

new text begin (c) Proceeds from the sale or licensing of software products or services developed
by the Department of Transportation, or custom developed by a vendor for the agency,
using trunk highway funds, must be credited to the trunk highway fund.
new text end

Sec. 2.

Minnesota Statutes 2014, section 161.088, subdivision 5, is amended to read:

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 eligibility,
classify, 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; deleted text begin and
deleted text end

(7) support and consensus for the project among members of the surrounding
community new text begin ; and
new text end

new text begin (8) the extent to which land has been acquired for the project new text end .

(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.

Sec. 3.

Minnesota Statutes 2014, section 161.20, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Transfer of appropriations. new text end

new text begin With the approval of the commissioner of
management and budget, the commissioner of transportation may transfer unencumbered
balances among appropriations from the trunk highway fund and the state airports fund.
No transfer may be made from appropriations for state road construction, for operations
and maintenance, or for debt service. Transfers under this paragraph may not be made
between funds. Transfers under this paragraph must be reported immediately to the
chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over transportation finance.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

new text begin [161.225] LOANS FOR LAND ACQUISITION FOR HIGHWAY
PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Account established. new text end

new text begin The state right-of-way acquisition loan
account is created in the trunk highway fund for the purposes specified in this section.
Money in the account is annually appropriated to the commissioner and does not lapse.
Interest from the investment of money in this account must be deposited in the state
right-of-way acquisition loan account.
new text end

new text begin Subd. 2. new text end

new text begin Loans. new text end

new text begin (a) The commissioner may make loans to counties, towns, and
statutory and home rule charter cities to purchase property within the right-of-way of
a state trunk highway shown on an official map adopted pursuant to section 394.361
or 462.359, or to purchase property within the proposed right-of-way of a principal or
intermediate arterial highway. The loans shall be made from the fund established under this
subdivision for purchases approved by the commissioner. The loans shall bear no interest.
new text end

new text begin (b) The commissioner shall make loans only to:
new text end

new text begin (1) accelerate the acquisition of primarily undeveloped property when there
is a reasonable probability that the property will increase in value before highway
construction, and to update an expired environmental impact statement on a project for
which the right-of-way is being purchased;
new text end

new text begin (2) avert the imminent conversion or the granting of approvals which would allow
the conversion of property to uses which would jeopardize its availability for highway
construction;
new text end

new text begin (3) advance planning and environmental activities on highest priority major
metropolitan river crossing projects under the transportation development guide chapter
policy plan; or
new text end

new text begin (4) take advantage of open market opportunities when developed properties become
available for sale, provided all parties involved are agreeable to the sale and funds are
available.
new text end

new text begin (c) The commissioner shall not make loans to purchase property at a price which
exceeds the fair market value of the property or which includes the costs of relocating or
moving persons or property. The eminent domain process may be used to settle differences
of opinion as to fair market value, provided all parties agree to the process.
new text end

new text begin (d) A private property owner may elect to receive the purchase price either
in a lump sum or in not more than four annual installments without interest on the
deferred installments. If the purchase agreement provides for installment payments,
the commissioner shall make the loan in installments corresponding to those in the
purchase agreement. The recipient of an acquisition loan shall convey the property for the
construction of the highway at the same price which the recipient paid for the property. The
price may include the costs of preparing environmental documents that were required for
the acquisition and that were paid for with money that the recipient received from the loan
fund. Upon notification by the commissioner that the plan to construct the highway has been
abandoned or the anticipated location of the highway has changed, the recipient shall sell
the property at market value in accordance with the procedures required for the disposition
of the property. All rents and other money received because of the recipient's ownership
of the property and all proceeds from the conveyance or sale of the property shall be paid
to the commissioner. If a recipient is not permitted to include in the conveyance price the
cost of preparing environmental documents that were required for the acquisition, then the
recipient is not required to repay the commissioner an amount equal to 40 percent of the
money received from the loan fund and spent in preparing the environmental documents.
new text end

new text begin (e) For administration of the loan program, the commissioner may expend from the
fund each year an amount no greater than three percent of the amount of the proceeds for
that year.
new text end

new text begin Subd. 3. new text end

new text begin Loans for acquisition and relocation. new text end

new text begin (a) The commissioner may
make loans to acquiring authorities within the metropolitan area to purchase homestead
property located in a proposed state trunk highway right-of-way or project, and to provide
relocation assistance. Acquiring authorities are authorized to accept the loans and to
acquire the property. Except as provided in this subdivision, the loans shall be made as
provided in subdivision 2. Loans shall be in the amount of the fair market value of the
homestead property plus relocation costs and less salvage value. Before construction of
the highway begins, the acquiring authority shall convey the property to the commissioner
at the same price it paid, plus relocation costs and less its salvage value. Acquisition and
assistance under this subdivision must conform to sections 117.50 to 117.56.
new text end

new text begin (b) The commissioner may make loans only when:
new text end

new text begin (1) the owner of affected homestead property requests acquisition and relocation
assistance from an acquiring authority;
new text end

new text begin (2) federal or state financial participation is not available;
new text end

new text begin (3) the owner is unable to sell the homestead property at its appraised market value
because the property is located in a proposed state trunk highway right-of-way or project as
indicated on an official map or plat adopted under section 160.085, 394.361, or 462.359; and
new text end

new text begin (4) the commissioner agrees to and approves the fair market value of the homestead
property, which approval shall not be unreasonably withheld.
new text end

new text begin (c) For purposes of this subdivision, the following terms have the meanings given
them:
new text end

new text begin (1) "acquiring authority" means counties, towns, and statutory and home rule
charter cities;
new text end

new text begin (2) "homestead property" means: (i) a single-family dwelling occupied by the
owner, and the surrounding land, not exceeding a total of ten acres; or (ii) a manufactured
home, as defined in section 327B.01, subdivision 13; and
new text end

new text begin (3) "salvage value" means the probable sale price of the dwelling and other property
that is severable from the land if offered for sale on the condition that it be removed from
the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge
of the possible uses of the property, including separate use of serviceable components and
scrap when there is no other reasonable prospect of sale.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016.
new text end

Sec. 5.

Minnesota Statutes 2014, section 161.231, is amended to read:

161.231 APPROPRIATION; PROCEEDS FROM deleted text begin LEASED deleted text end new text begin STATE
new text end PROPERTY.

There is appropriated annually from the fund or account in the state treasury to which
the deleted text begin rental deleted text end money from new text begin the sale, lease, conveyance, or disposal of new text end state deleted text begin leased deleted text end property
is credited a sufficient amount of money to carry out the state's obligations under the
provisions of sections new text begin 15.16, 117.135, 117.226, 161.16, 161.202, new text end 161.23, subdivision 3,
new text begin 161.24, 161.241, 161.43, 161.433, 161.44, 161.442, new text end and 272.68, subdivision 3 new text begin , including
the inventorying, marketing, and property management activities required to sell, lease,
rent, permit, convey, or otherwise dispose of the land or the interest in the land. At the
discretion of the commissioner of transportation, money in the account at the end of each
biennium may cancel to the trunk highway fund new text end .

Sec. 6.

Minnesota Statutes 2014, section 161.46, subdivision 2, is amended to read:

Subd. 2.

Relocation of facilities; reimbursement.

new text begin (a) new text end Whenever the commissioner
shall determine the relocation of any utility facility is necessitated by the construction of a
project on the routes of federally aided state trunk highways, including urban extensions
thereof, which routes are included within the National System of Interstate Highways, the
owner or operator of such utility facility shall relocate the same in accordance with the
order of the commissioner. After the completion of such relocation the cost thereof shall
be ascertained and paid by the state out of trunk highway funds; provided, however, the
amount to be paid by the state for such reimbursement shall not exceed the amount on
which the federal government bases its reimbursement for said interstate system.

new text begin (b) Notwithstanding paragraph (a), any utility facility installed after August 1, 2015,
is not eligible for relocation reimbursement.
new text end

Sec. 7.

Minnesota Statutes 2014, section 168.013, subdivision 1g, is amended to read:

Subd. 1g.

Recreational vehicle.

(a) Self-propelled recreational vehicles deleted text begin shall deleted text end new text begin must
new text end be separately licensed and taxed annually on the basis of total gross weight deleted text begin and deleted text end new text begin . new text end The
tax deleted text begin shall deleted text end new text begin must new text end be graduated according to the Minnesota base rate schedule prescribed
in subdivision 1e, but in no event less than $20, except as otherwise provided in this
subdivision.

(b) For all self-propelled recreational vehicles, the tax for the ninth and succeeding
years of vehicle life deleted text begin shall be deleted text end new text begin is new text end 75 percent of the tax imposed in the Minnesota base rate
schedule.

(c) Towed recreational vehicles deleted text begin shall deleted text end new text begin must new text end be separately licensed and taxed new text begin under
either one of the following, as determined by the vehicle owner: (1) new text end annually on the basis
of total gross weight at 30 percent of the Minnesota base rate prescribed in subdivision 1e
deleted text begin but deleted text end new text begin ; or (2) once every three years on the basis of total gross weight at 90 percent of the
Minnesota base rate prescribed in subdivision 1e, provided that the filing fee under section
168.33, subdivision 7, paragraph (a), is multiplied by three, with funds collected by the
commissioner allocated proportionally in the same manner as provided in section 168.33,
subdivision 7, paragraph (e). new text end In no event new text begin is the tax under this paragraph new text end less than $5.

(d) Notwithstanding any law to the contrary, all trailers and semitrailers taxed
pursuant to this section deleted text begin shall be deleted text end new text begin are new text end exempt from any wheelage tax now or hereafter
imposed by any political subdivision or political subdivisions.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies to taxes payable for a registration period starting on or after January 1, 2016.
new text end

Sec. 8.

Minnesota Statutes 2014, section 168.013, subdivision 8, is amended to read:

Subd. 8.

Tax proceeds to highway user fund; fee proceeds to vehicle services
account.

(a) Unless otherwise specified in this chapter, the net proceeds of the registration
tax imposed under this chapter new text begin , including the penalty surcharge for late payment, imposed
in section 168.31, subdivision 1a, new text end must be collected by the commissioner, paid into the
state treasury, and credited to the highway user tax distribution fund.

(b) All fees collected under this chapter, unless otherwise specified, must be
deposited in the vehicle services operating account in the special revenue fund under
section 299A.705.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015, and applies to vehicle
registration taxes due and unpaid on and after that date.
new text end

Sec. 9.

Minnesota Statutes 2014, section 168.12, subdivision 1, is amended to read:

Subdivision 1.

Plates; design, visibility, periods of issuance.

(a) The commissioner,
upon approval and payment, shall issue to the applicant the plates required by this chapter,
bearing the state name and an assigned vehicle registration number. The number assigned
by the commissioner may be a combination of a letter or sign with figures. The color of the
plates and the color of the abbreviation of the state name and the number assigned must
be in marked contrast. The plates must be lettered, spaced, or distinguished to suitably
indicate the registration of the vehicle according to the rules of the commissioner.

(b) When a vehicle is registered on the basis of total gross weight, the plates issued
must clearly indicate by letters or other suitable insignia the maximum gross weight
for which the tax has been paid.

(c) Plates issued to a noncommercial vehicle must bear the inscription
"noncommercial" unless the vehicle is displaying a special plate authorized and issued
under this chapter.

(d) A one-ton pickup truck that is used for commercial purposes and is subject to
section 168.185, is eligible to display special plates as authorized and issued under this
chapter.

(e) The plates must be so treated as to be at least 100 times brighter than the
conventional painted number plates. When properly mounted on an unlighted vehicle, the
plates, when viewed from a vehicle equipped with standard headlights, must be visible for
a distance of not less than 1,500 feet and readable for a distance of not less than 110 feet.

(f) The commissioner shall issue plates for the following periods:

(1) New plates issued pursuant to section 168.012, subdivision 1, must be issued to a
vehicle for as long as the vehicle is owned by the exempt agency and the plate shall not be
transferable from one vehicle to another but the plate may be transferred with the vehicle
from one tax-exempt agency to another.

(2) Plates issued for passenger automobiles must be issued for a deleted text begin seven-year deleted text end new text begin ten-year
new text end period. All plates issued under this paragraph must be replaced if they are deleted text begin seven deleted text end new text begin ten new text end years
old or older at the time of registration renewal or will become so during the registration
period.

(3) Plates issued under sections 168.053 and 168.27, subdivisions 16 and 17, must
be for a deleted text begin seven-year deleted text end new text begin ten-year new text end period.

(4) Plates issued under subdivisions 2c and 2d and section 168.123 must be issued
for the life of the veteran under section 169.79.

(5) Plates for any vehicle not specified in clauses (1) to (3) must be issued for the
life of the vehicle.

(g) In a year in which plates are not issued, the commissioner shall issue for each
registration a sticker to designate the year of registration. This sticker must show the year or
years for which the sticker is issued, and is valid only for that period. The plates and stickers
issued for a vehicle may not be transferred to another vehicle during the period for which
the sticker is issued, except when issued for a vehicle registered under section 168.187.

(h) Despite any other provision of this subdivision, plates issued to a vehicle used
for behind-the-wheel instruction in a driver education course in a public school may
be transferred to another vehicle used for the same purpose without payment of any
additional fee. The public school shall notify the commissioner of each transfer of plates
under this paragraph. The commissioner may prescribe a format for notification.

Sec. 10.

Minnesota Statutes 2014, section 168.31, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Penalty surcharge for late payment. new text end

new text begin Except as otherwise provided in
subdivisions 4 and 4a, a vehicle owner who has failed to pay the tax required under this
chapter on or before the due date shall pay in full the tax due on the vehicle, together with
a penalty surcharge of $25 for each month or portion of a month following the expiration
of the registration period, except that the amount of the late fee may not exceed $100.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015, and applies to vehicle
registration taxes due and unpaid on and after that date.
new text end

Sec. 11.

new text begin [174.53] FEDERAL FUND FLEXIBILITY PROGRAM.
new text end

new text begin The commissioner shall establish a program to allow greater flexibility and
efficiency in the allocation of federal funds for state-aid transportation projects. The
commissioner shall:
new text end

new text begin (1) establish and administer selection criteria and a process under which a local unit
of government that would otherwise receive federal funds for a local transportation project
would be able to finance the project with state funds instead of federal funds;
new text end

new text begin (2) redirect the unused federal funds to transportation projects for which federal
funds could be utilized by the state more efficiently and productively;
new text end

new text begin (3) achieve a reasonable degree of equity among the department districts in
distributing funds under the program; and
new text end

new text begin (4) ensure that the state's receipt of federal funds for transportation projects is not
jeopardized by the program.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2014, section 299A.465, subdivision 2, is amended to read:

Subd. 2.

Officer or firefighter killed in line of duty.

(a) This subdivision applies
when a peace officer deleted text begin or deleted text end new text begin , new text end firefighter new text begin , or volunteer firefighter new text end is killed while on duty and
discharging the officer's deleted text begin or deleted text end new text begin , new text end firefighter's new text begin , or volunteer firefighter's new text end duties as a peace officer
deleted text begin or deleted text end new text begin , new text end firefighter new text begin , or volunteer firefighter new text end .

(b) The officer's or firefighter's employer shall continue to cover the deceased
officer's or firefighter's dependents, including the officer's or firefighter's spouse:

(1) if the officer deleted text begin or deleted text end new text begin , new text end firefighter new text begin , or volunteer firefighter new text end was receiving dependent
coverage at the time of the officer's deleted text begin or deleted text end new text begin , new text end firefighter's new text begin , or volunteer firefighter's new text end death under
the employer's group health plan; or

(2) if the officer's deleted text begin or deleted text end new text begin , new text end firefighter's new text begin , or volunteer firefighter's new text end spouse was not covered
as a dependent at the time of the officer's deleted text begin or deleted text end new text begin , new text end firefighter's new text begin , or volunteer firefighter's new text end death,
but at that time was eligible, or afterward becomes eligible, to be a dependent on the
employer's group health plan.

(c) The employer is responsible for the employer's contribution for the coverage of
the officer's deleted text begin or deleted text end new text begin , new text end firefighter's new text begin , or volunteer firefighter's new text end dependents. new text begin Subject to subdivision
5, paragraph (b), clause (2), new text end coverage must continue for a dependent of the officer deleted text begin or deleted text end new text begin ,
new text end firefighter deleted text begin for the period of time that the person is a dependent up to the age of 65 deleted text end new text begin , or
volunteer firefighter as follows: (1) for a surviving spouse, until the surviving spouse
reaches the age of 65; and (2) for each other dependent, until the dependent reaches the
age of 26, except as otherwise provided in section 62L.02, subdivision 11 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, and applies to
officer, firefighter, and volunteer firefighter deaths that occur on and after the effective date.
new text end

Sec. 13.

Minnesota Statutes 2014, section 299A.465, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Volunteer firefighter killed in line of duty. new text end

new text begin (a) This subdivision
applies when a volunteer firefighter is killed while on duty and discharging the volunteer
firefighter's duties as a volunteer firefighter and the municipality or municipalities that
operate the fire department did not offer a group health insurance policy to which a
volunteer firefighter was eligible to subscribe.
new text end

new text begin (b) The municipality or municipalities that operate the fire department that the
volunteer firefighter served with shall, until coverage terminates as provided under
subdivision 2, paragraph (c), either: (1) provide health insurance coverage for the
volunteer firefighter's dependents that is equivalent to the average benefit provided by the
municipality or municipalities to dependents of its employees who are covered by the
plan, or (2) reimburse the dependents, if the municipality or municipalities do not offer a
group health insurance plan for any employees, for a minimum of 50 percent of the cost of
health insurance premiums for coverage selected by the dependents.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, and applies to
volunteer firefighter deaths that occur on and after the effective date.
new text end

Sec. 14.

Minnesota Statutes 2014, section 299A.465, subdivision 5, is amended to read:

Subd. 5.

Definition.

For purposes of this section:

(a) "Peace officer" or "officer" has the meaning given in section 626.84, subdivision
1, paragraph (c).

(b) "Dependent" means a person who new text begin : (1) new text end meets the definition of dependent in
section 62L.02, subdivision 11, at the time of the officer's or firefighter's injury or death deleted text begin . a
person deleted text end new text begin ; and (2) new text end is not deleted text begin a dependent for purposes of this section during the period of time the
person is deleted text end covered under another group health plan new text begin . For purposes of this section, a volunteer
firefighter is deemed to be an eligible employee under section 62L.02, subdivision 13 new text end .

(c) "Firefighter" has the meaning given in Minnesota Statutes 2000, section 424.03,
but does not include volunteer firefighters.

new text begin (d) "Volunteer firefighter" has the meaning given in section 299N.03, subdivision 7,
and includes paid per call.
new text end

new text begin (e) "Fire department" has the meaning given in section 299N.03, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, and applies to
officer and firefighter deaths that occur on and after the effective date.
new text end

Sec. 15.

Minnesota Statutes 2014, section 299A.465, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Minimum benefit. new text end

new text begin Nothing in this section prohibits an employer from
providing benefits to survivors of deceased volunteer firefighters that are greater than the
benefits required under this section.
new text end

Sec. 16.

Minnesota Statutes 2014, section 299D.09, is amended to read:

299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.

new text begin (a) new text end Fees charged for escort services provided by the State Patrol are annually
appropriated to the commissioner of public safety to administer and provide these services.

new text begin (b) new text end The fee charged for services provided by the State Patrol deleted text begin with a vehicle is $79.28
an hour. The fee charged for services provided without a vehicle is $59.28 an hour
deleted text end new text begin shall be set to recover actual costs as determined by the commissioner of public safety
by July 1 each year new text end .

new text begin (c) new text end The fees charged for State Patrol flight services are $140 an hour for a fixed wing
aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air in fiscal year
2012; and $139.64 an hour for a fixed wing aircraft, $560.83 an hour for a helicopter, and
$454.84 an hour for the Queen Air in fiscal year 2013 and thereafter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

new text begin [299F.037] REPORTING FIREFIGHTER DEATHS.
new text end

new text begin Whenever an active firefighter dies, whether or not the death is presumed to be in the
line of duty, the fire chief of the deceased firefighter must report, without undue delay,
the death to the state fire marshal. The notification shall identify the cause of death and
contain information concerning the circumstances of the death.
new text end

Sec. 18.

Minnesota Statutes 2014, section 360.024, is amended to read:

360.024 AIR TRANSPORTATION SERVICE CHARGE.

The commissioner shall charge users of air transportation services provided by the
commissioner for direct operating costs, excluding pilot salary deleted text begin and aircraft acquisition
deleted text end costs. All receipts for these services shall be deposited in the air transportation services
account in the state airports fund and are appropriated to the commissioner to pay these
direct air service operating costs.

Sec. 19.

Minnesota Statutes 2014, section 473.167, is amended to read:

473.167 HIGHWAY new text begin AND TRANSIT new text end PROJECTS.

Subd. 2.

Loans for acquisition.

(a) The council may make loans to counties, towns,
and statutory and home rule charter cities within the metropolitan area for the purchase of
property within the right-of-way of a state trunk highway shown on an official map adopted
pursuant to section 394.361 or 462.359 deleted text begin or deleted text end new text begin , new text end for the purchase of property within the proposed
right-of-way of a principal or intermediate arterial highway designated by the council as a
part of the metropolitan highway system plan and approved by the council pursuant to
section 473.166 new text begin , or for the purchase of property needed for proposed transit-related capital
improvements, including transitways designated in the council's most recent transportation
policy plan new text end . The loans shall be made by the council, from the fund established pursuant to
this subdivision, for purchases approved by the council. The loans shall bear no interest.

(b) The council shall make loans only:

(1) to accelerate the acquisition of primarily undeveloped property when there
is a reasonable probability that the property will increase in value before highway new text begin or
transit-related new text end construction, and to update an expired environmental impact statement on
a project for which the right-of-way is being purchased;

(2) to avert the imminent conversion or the granting of approvals which would allow
the conversion of property to uses which would jeopardize its availability for highway new text begin or
transit-related new text end construction;

(3) to advance planning and environmental activities on highest priority major
metropolitan river crossing projects, under the transportation development guide
chapter/policy plan; or

(4) to take advantage of open market opportunities when developed properties
become available for sale, provided all parties involved are agreeable to the sale and
funds are available.

(c) The council shall not make loans for the purchase of property at a price which
exceeds the fair market value of the property or which includes the costs of relocating or
moving persons or property. The eminent domain process may be used to settle differences
of opinion as to fair market value, provided all parties agree to the process.

(d) A private property owner may elect to receive the purchase price either in a
lump sum or in not more than four annual installments without interest on the deferred
installments. If the purchase agreement provides for installment payments, the council
shall make the loan in installments corresponding to those in the purchase agreement. The
recipient of an acquisition loan shall convey the property for the construction of the highway
at the same price which the recipient paid for the property. The price may include the costs
of preparing environmental documents that were required for the acquisition and that were
paid for with money that the recipient received from the loan fund. Upon notification by
the council that the plan to construct the highway new text begin or transit project new text end has been abandoned or
the anticipated location of the highway new text begin or transit project new text end changed, the recipient shall sell
the property at market value in accordance with the procedures required for the disposition
of the property. All rents and other money received because of the recipient's ownership
of the property and all proceeds from the conveyance or sale of the property shall be paid
to the council. If a recipient is not permitted to include in the conveyance price the cost
of preparing environmental documents that were required for the acquisition, then the
recipient is not required to repay the council an amount equal to 40 percent of the money
received from the loan fund and spent in preparing the environmental documents.

(e) The proceeds of the tax authorized by subdivision 3, all money paid to the
council by recipients of loans, and all interest on the proceeds and payments shall be
maintained as a separate fund. For administration of the loan program, the council may
expend from the fund each year an amount no greater than three percent of the amount of
the proceeds for that year.

Subd. 2a.

Loans for acquisition and relocation.

(a) The council may make loans
to acquiring authorities within the metropolitan area to purchase homestead property
located in a proposed state trunk highway right-of-way or project new text begin or transit-related project new text end ,
and to provide relocation assistance. Acquiring authorities are authorized to accept the
loans and to acquire the property. Except as provided in this subdivision, the loans shall
be made as provided in subdivision 2. Loans shall be in the amount of the fair market
value of the homestead property plus relocation costs and less salvage value. Before
construction of the highway new text begin or transit-related project new text end begins, the acquiring authority shall
convey the property to the commissioner of transportation new text begin or council new text end at the same price it
paid, plus relocation costs and less its salvage value. Acquisition and assistance under this
subdivision must conform to sections 117.50 to 117.56.

(b) The council may make loans only when:

(1) the owner of affected homestead property requests acquisition and relocation
assistance from an acquiring authority;

(2) federal or state financial participation is not available;

(3) the owner is unable to sell the homestead property at its appraised market
value because the property is located in a proposed state trunk highway right-of-way or
project as indicated on an official map or plat adopted under section 160.085, 394.361,
or 462.359 new text begin , or transit-related project new text end ; and

(4) the council agrees to and approves the fair market value of the homestead
property, which approval shall not be unreasonably withheld.

(c) For purposes of this subdivision, the following terms have the meanings given
them.

(1) "Acquiring authority" means counties, towns, and statutory and home rule
charter cities in the metropolitan area.

(2) "Homestead property" means: (i) a single-family dwelling occupied by the
owner, and the surrounding land, not exceeding a total of ten acres; or (ii) a manufactured
home, as defined in section 327B.01, subdivision 13.

(3) "Salvage value" means the probable sale price of the dwelling and other property
that is severable from the land if offered for sale on the condition that it be removed from
the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge
of the possible uses of the property, including separate use of serviceable components and
scrap when there is no other reasonable prospect of sale.

Subd. 3.

Tax.

The council may levy a tax on all taxable property in the metropolitan
area, as defined in section 473.121, to provide funds for loans made pursuant to
subdivisions 2 and 2a. This tax for the right-of-way acquisition loan fund shall be certified
by the council, levied, and collected in the manner provided by section 473.13. The tax
shall be in addition to that authorized by section 473.249 and any other law and shall not
affect the amount or rate of taxes which may be levied by the council or any metropolitan
agency or local governmental unit. The amount of the levy shall be as determined and
certified by the council, provided that the tax levied by the Metropolitan Council for the
right-of-way acquisition loan fund shall not exceed deleted text begin $2,828,379 for taxes payable in 2004
and $2,828,379 for taxes payable in 2005. The amount of the levy for taxes payable in
2006 and subsequent years shall not exceed deleted text end the product of (1) the Metropolitan Council's
property tax levy limitation under this subdivision for the previous year, multiplied by
(2) one plus a percentage equal to the growth in the implicit price deflator as defined
in section 275.70, subdivision 2.

Subd. 4.

State review.

The commissioner of revenue shall certify the council's levy
limitation under this section to the council by August 1 of the levy year. The council must
certify its proposed property tax levy to the commissioner of revenue by September 1 of
the levy year. The commissioner of revenue shall annually determine whether the property
tax for the right-of-way acquisition loan fund certified by the Metropolitan Council for
levy following the adoption of its proposed budget is within the levy limitation imposed
by this section. The determination must be completed prior to September 10 of each year.
If current information regarding market valuation in any county is not transmitted to the
commissioner in a timely manner, the commissioner may estimate the current market
valuation within that county for purposes of making the calculation.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Laws 2014, chapter 312, article 11, section 33, is amended to read:

Sec. 33. TRANSPORTATION EFFICIENCIES.

new text begin (a) new text end The commissioner of transportation shall include in the report under Minnesota
Statutes, section 174.56, due by December 15, 2015, information on efficiencies
implemented in fiscal year 2015 in planning and project management and delivery,
along with an explanation of the efficiencies employed to achieve the savings and the
methodology used in the calculations. The level of savings achieved must equal, in
comparison with the total state road construction budget for that year, a minimum of five
percent in fiscal year 2015. The report must identify the projects that have been advanced
or completed due to the implementation of efficiency measures.

new text begin (b) The commissioner shall identify in the report those recommendations from the
Transportation Strategic Management and Operations Advisory Task Force Report dated
January 23, 2009, submitted to the legislature by the Departments of Administration
and Transportation, as required by Laws 2008, chapter 152, article 6, section 9,
that the commissioner has implemented, with a description of current status of the
recommendation and results of implementation.
new text end

new text begin (c) The commissioner shall present in the report plans to incorporate greater
efficiencies in department operation and decision-making, including, but not limited to,
the following: financing innovations, mode choice in project selection and design, land
use planning, return on investment calculation, project delivery, including selection of
materials and decreasing project delivery time, and efficiencies in multiagency permitting.
new text end

ARTICLE 8

TRANSPORTATION POLICY

Section 1.

Minnesota Statutes 2014, section 168.002, subdivision 24, is amended to read:

Subd. 24.

Passenger automobile.

(a) "Passenger automobile" means any motor
vehicle designed and used for carrying not more than 15 individuals, including the driver.

(b) "Passenger automobile" does not include motorcycles, motor scooters, buses,
school buses, or commuter vans as defined in section 168.126.

(c) "Passenger automobile" includes, but is not limited to:

(1) a vehicle that is a pickup truck or a van as defined in subdivisions 26 and 40;

(2) neighborhood electric vehicles, as defined in section 169.011, subdivision 47; deleted text begin and
deleted text end

(3) medium-speed electric vehicles, as defined in section 169.011, subdivision 39 new text begin ; and
new text end

new text begin (4) unconventional vehicles, as defined in section 169.011, subdivision 89a new text end .

Sec. 2.

Minnesota Statutes 2014, section 168.053, subdivision 1, is amended to read:

Subdivision 1.

Application; fee; penalty.

Any person, firm, or corporation new text begin with
a business located in Minnesota new text end engaged in the business of transporting motor vehicles
owned by another, by delivering, by drive-away or towing methods, either singly or by
means of the full mount method, the saddle mount method, the tow bar method, or any other
combination thereof, and under their own power, vehicles over the highways of the state
from the manufacturer or any other point of origin, to any point of destination, within or
without the state, shall make application to the registrar for a drive-away in-transit license.
This application for annual license shall be accompanied by a registration fee of $250 and
contain information the registrar may require. Upon the filing of the application and the
payment of the fee, the registrar shall issue to each drive-away operator a drive-away
in-transit license plate, which must be carried and displayed on the power unit consistent
with section 169.79 and the plate shall remain on the vehicle while being deleted text begin operated within
Minnesota deleted text end new text begin transported new text end . The license plate issued under this subdivision is not valid for the
purpose of permanent vehicle registration deleted text begin and is not valid outside Minnesota deleted text end . Additional
drive-away in-transit license plates desired by any drive-away operator may be secured
from the registrar of motor vehicles upon the payment of a fee of $5 for each set of
additional license plates. Any person, firm, or corporation engaging in the business as a
drive-away operator, of transporting and delivering by means of full mount method, the
saddle mount method, the tow bar method, or any combination thereof, and under their
own power, motor vehicles, who fails or refuses to file or cause to be filed an application,
as is required by law, and to pay the fees therefor as the law requires, shall be found guilty
of violating the provisions of sections 168.053 to 168.057; and, upon conviction, fined
not less than $50, and not more than $100, and all costs of court. Each day so operating
without securing the license and plates as required shall constitute a separate offense.

Sec. 3.

new text begin [168.1294] "BREAST CANCER AWARENESS" PLATES.
new text end

new text begin Subdivision 1. new text end

new text begin Issuance of plates. new text end

new text begin The commissioner shall issue special "Breast
Cancer Awareness" plates or a single motorcycle plate to an applicant who:
new text end

new text begin (1) is a registered owner of a passenger automobile, one-ton pickup truck,
motorcycle, or recreational motor vehicle;
new text end

new text begin (2) pays a fee of $12.50 for each set of plates;
new text end

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

new text begin (4) contributes a minimum of $20 to the Masonic Cancer Center at the University of
Minnesota for breast cancer research; and
new text end

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

new text begin Subd. 2. new text end

new text begin Design. new text end

new text begin The commissioner shall design the special plate to contain the
inscription "Minnesota Cares" and the pink breast cancer ribbon.
new text end

new text begin Subd. 3. new text end

new text begin Plates transfer. new text end

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

new text begin (1) qualified under subdivision 1, clause (1), to bear the special plates; and
new text end

new text begin (2) registered to the same individual to whom the special plates were originally issued.
new text end

new text begin Subd. 4. new text end

new text begin Exemption. new text end

new text begin Special plates issued under this section are not subject to
section 168.1293, subdivision 2.
new text end

new text begin Subd. 5. new text end

new text begin Fees. new text end

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

new text begin Subd. 6. new text end

new text begin No refund. new text end

new text begin Contributions under this section must not be refunded.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, for plates issued
on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2014, section 168A.05, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Unconventional vehicles; certificate required. new text end

new text begin Unconventional
vehicles, as defined in section 169.011, subdivision 89a, must be titled as specified in
section 168A.02. The commissioner shall issue a title for an unconventional vehicle
(1) having a vehicle identification number or other alphanumeric sequence assigned
by the manufacturer for the purpose of identifying that vehicle, and (2) for which the
requirements under this chapter are met.
new text end

Sec. 5.

Minnesota Statutes 2014, section 168D.06, is amended to read:

168D.06 FUEL LICENSE FEES.

License fees paid to the commissioner under the International Fuel Tax Agreement
must be deposited in the vehicle services operating account in the special revenue fund
under section 299A.705. The commissioner shall charge an annual fuel license fee of
$15, deleted text begin and deleted text end an annual application filing fee of $13 for quarterly reporting of fuel tax new text begin , and a
reinstatement fee of $100 to reinstate a revoked International Fuel Tax Agreement license new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2014, section 169.011, is amended by adding a subdivision
to read:

new text begin Subd. 89a. new text end

new text begin Unconventional vehicle. new text end

new text begin (a) "Unconventional vehicle" means a motor
vehicle that:
new text end

new text begin (1) has at least three wheels;
new text end

new text begin (2) has an unloaded weight of 300 to 8,000 pounds;
new text end

new text begin (3) contains a permanent upright seat or saddle for the driver that is mounted at least
24 inches from the ground; and
new text end

new text begin (4) has a speed attainable in one mile of at least 60 miles per hour on a level paved
surface.
new text end

new text begin (b) An unconventional vehicle does not include any motor vehicle that is otherwise
defined under section 168.002 and able to be registered under chapter 168. The exclusion
under this paragraph applies but is not limited to an all-terrain vehicle, motorcycle,
motorized bicycle, neighborhood electric vehicle, and medium-speed electric vehicle.
new text end

Sec. 7.

new text begin [169.2245] UNCONVENTIONAL VEHICLE.
new text end

new text begin A person may operate an unconventional vehicle on public streets and highways,
except on a freeway, as defined in section 160.02, subdivision 19. A road authority,
including the commissioner of transportation by order, may prohibit operation of
unconventional vehicles on any street or highway under the road authority's jurisdiction.
new text end

Sec. 8.

Minnesota Statutes 2014, section 169.798, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Attestation of deleted text end Insurance new text begin information new text end required.

Every owner, when
applying for motor vehicle or motorcycle registration, reregistration, or transfer of
ownership, must deleted text begin attest deleted text end new text begin provide information showing new text end that the motor vehicle or motorcycle
is covered by an insurance policy. new text begin Information required under this subdivision consists
of the insurance company's name, the policy number, and the policy expiration date for
the subject motor vehicle or motorcycle.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, and applies to
registrations, reregistrations, and transfers of ownership occurring on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2014, section 171.01, is amended by adding a subdivision
to read:

new text begin Subd. 31c. new text end

new text begin Driving privilege license. new text end

new text begin "Driving privilege license" means a class
D license, instruction permit, or provisional license to operate a motor vehicle issued or
issuable under the laws of this state by the commissioner of public safety to a person who
is unable to demonstrate legal presence in this country through current lawful admission
status, permanent resident status, indefinite authorized presence status, or United
States citizenship. A driving privilege license may be used only for driving and not as
identification or proof of legal presence or citizenship. A driving privilege license must not
be used or accepted for voter registration purposes under section 201.061. All provisions
in this chapter relating to drivers' licenses, instruction permits, and provisional licenses,
including cancellation, suspension, revocation, reinstatement, examination, restriction,
expiration, renewal, and unlawful acts and violations, apply to a driving privilege license.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, for a new driver's
license, permit, or identification card, and a renewal issued on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2014, section 171.01, subdivision 37, is amended to read:

Subd. 37.

License.

"License" means any operator's license or any other license or
permit to operate a motor vehicle issued or issuable under the laws of this state by the
commissioner of public safety including:

(1) any temporary license new text begin , driving privilege license new text end , instruction permit, or
provisional license;

(2) the privilege of any person to drive a motor vehicle whether or not the person
holds a valid license; and

(3) any nonresident's operating privilege.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, for a new driver's
license, permit, or identification card, and a renewal issued on or after that date.
new text end

Sec. 11.

Minnesota Statutes 2014, section 171.01, subdivision 49a, is amended to read:

Subd. 49a.

Valid license; valid driver's license.

"Valid license," "valid driver's
license," "valid Minnesota driver's license," "valid standard driver's license," or other
similar term, means any operator's license, provisional license new text begin , driving privilege license new text end ,
temporary license, limited license, permit, or other license to operate a motor vehicle
issued or issuable under the laws of this state by the commissioner, or by another state or
jurisdiction if specified, that is:

(1) not expired, suspended, revoked, or canceled; and

(2) not disqualified for the class of vehicle being operated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, for a new driver's
license, permit, or identification card, and a renewal issued on or after that date.
new text end

Sec. 12.

Minnesota Statutes 2014, section 171.06, subdivision 1, is amended to read:

Subdivision 1.

Forms of application.

Every application for a Minnesota
identification card, for an enhanced identification card, for an instruction permit, for
a provisional license, for a driver's license new text begin , driving privilege license new text end , or for an enhanced
driver's license must be made in a format approved by the department, and every
application must be accompanied by the proper fee. All first-time applications and
change-of-status applications must be signed in the presence of the person authorized to
accept the application, or the signature on the application may be verified by a notary
public. All applications requiring evidence of legal presence in the United States or United
States citizenship must be signed in the presence of the person authorized to accept the
application, or the signature on the application may be verified by a notary public.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, for a new driver's
license, permit, or identification card, and a renewal issued on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2014, section 171.06, subdivision 2, is amended to read:

Subd. 2.

Fees.

(a) The fees for a license and Minnesota identification card are
as follows:

Classified Driver's License		D-$17.25	C-$21.25	B-$28.25	A-$36.25
Classified Under-21 D.L.		D-$17.25	C-$21.25	B-$28.25	A-$16.25
new text begin Driving Privilege License new text end		new text begin D-$17.25 new text end	new text begin - new text end	new text begin - new text end	new text begin - new text end
Enhanced Driver's License		D-$32.25	C-$36.25	B-$43.25	A-$51.25
Instruction Permit					$5.25
Enhanced Instruction Permit					$20.25
Commercial Learner's Permit					$2.50
Provisional License					$8.25
Enhanced Provisional License					$23.25
Duplicate License or duplicate identification card					$6.75
Enhanced Duplicate License or enhanced duplicate identification card					$21.75
Minnesota identification card or Under-21 Minnesota identification card, other than duplicate, except as otherwise provided in section 171.07, subdivisions 3 and 3a					$11.25
Enhanced Minnesota identification card					$26.25

In addition to each fee required in this paragraph, the commissioner shall collect a
surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30,
2016. Surcharges collected under this paragraph must be credited to the driver and vehicle
services technology account in the special revenue fund under section 299A.705.

(b) Notwithstanding paragraph (a), an individual who holds a provisional license and
has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
violations, and (3) convictions for moving violations that are not crash related, shall have a
$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
has the meaning given it in section 171.04, subdivision 1.

(c) In addition to the driver's license fee required under paragraph (a), the
commissioner shall collect an additional $4 processing fee from each new applicant
or individual renewing a license with a school bus endorsement to cover the costs for
processing an applicant's initial and biennial physical examination certificate. The
department shall not charge these applicants any other fee to receive or renew the
endorsement.

(d) In addition to the fee required under paragraph (a), a driver's license agent may
charge and retain a filing fee as provided under section 171.061, subdivision 4.

(e) In addition to the fee required under paragraph (a), the commissioner shall
charge a filing fee at the same amount as a driver's license agent under section 171.061,
subdivision 4. Revenue collected under this paragraph must be deposited in the driver
services operating account.

(f) An application for a Minnesota identification card, instruction permit, provisional
license new text begin , driving privilege license new text end , or driver's license, including an application for renewal,
must contain a provision that allows the applicant to add to the fee under paragraph (a),
a $2 donation for the purposes of public information and education on anatomical gifts
under section 171.075.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, for a new driver's
license, permit, or identification card, and a renewal issued on or after that date.
new text end

Sec. 14.

Minnesota Statutes 2014, section 171.06, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Contents of deleted text end Application deleted text begin ; other information deleted text end new text begin requirements new text end .

(a) An
application must:

(1) state the full name, date of birth, sex, and either (i) the residence address of the
applicant, or (ii) designated address under section 5B.05;

(2) as may be required by the commissioner, contain a description of the applicant
and any other facts pertaining to the applicant, the applicant's driving privileges, and the
applicant's ability to operate a motor vehicle with safety;

(3) state:

(i) the applicant's Social Security number; or

(ii) if the applicant does not have a Social Security number and is applying for a
Minnesota identification card, instruction permit, or class D provisional or driver's license,
that the applicant certifies that the applicant does not have a Social Security number;

(4) in the case of an application for an enhanced driver's license or enhanced
identification card, present:

(i) proof satisfactory to the commissioner of the applicant's full legal name, United
States citizenship, identity, date of birth, Social Security number, and residence address; and

(ii) a photographic identity document;

(5) contain a space where the applicant may indicate a desire to make an anatomical
gift according to paragraph (b);

(6) contain a notification to the applicant of the availability of a living will/health
care directive designation on the license under section 171.07, subdivision 7; deleted text begin and
deleted text end

(7) contain a space where the applicant may request a veteran designation on the
license under section 171.07, subdivision 15, and the driving record under section 171.12,
subdivision 5a new text begin ; and
new text end

new text begin (8) contain a space where the applicant must attest to a residence address in
Minnesota new text end .

(b) If the applicant does not indicate a desire to make an anatomical gift when
the application is made, the applicant must be offered a donor document in accordance
with section 171.07, subdivision 5. The application must contain statements sufficient to
comply with the requirements of the Darlene Luther Revised Uniform Anatomical Gift
Act, chapter 525A, so that execution of the application or donor document will make
the anatomical gift as provided in section 171.07, subdivision 5, for those indicating a
desire to make an anatomical gift. The application must be accompanied by information
describing Minnesota laws regarding anatomical gifts and the need for and benefits of
anatomical gifts, and the legal implications of making an anatomical gift, including the
law governing revocation of anatomical gifts. The commissioner shall distribute a notice
that must accompany all applications for and renewals of a driver's license or Minnesota
identification card. The notice must be prepared in conjunction with a Minnesota organ
procurement organization that is certified by the federal Department of Health and Human
Services and must include:

(1) a statement that provides a fair and reasonable description of the organ donation
process, the care of the donor body after death, and the importance of informing family
members of the donation decision; and

(2) a telephone number in a certified Minnesota organ procurement organization that
may be called with respect to questions regarding anatomical gifts.

(c) The application must be accompanied also by information containing relevant
facts relating to:

(1) the effect of alcohol on driving ability;

(2) the effect of mixing alcohol with drugs;

(3) the laws of Minnesota relating to operation of a motor vehicle while under the
influence of alcohol or a controlled substance; and

(4) the levels of alcohol-related fatalities and accidents in Minnesota and of arrests
for alcohol-related violations.

new text begin (d) A government identification card is:
new text end

new text begin (1) an acceptable form of proof of identity in application for a Minnesota
identification card, instruction permit, or driver's license; and
new text end

new text begin (2) a primary document for purposes of Minnesota Rules, part 7410.0400.
new text end

new text begin (e) For purposes of this section, "government identification card" means a valid,
unexpired passport issued by a country other than the United States with a certified birth
certificate from a country other than the United States, the District of Columbia, Guam,
Puerto Rico, or the United States Virgin Islands. A passport and birth certificate under this
paragraph must have security features that make the document as impervious to alteration
as is reasonably practicable in its design and quality of material and technology, using
materials that are not readily available to the general public. Any document not in English
must be accompanied by a qualified English translation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, for a new driver's
license, permit, or identification card, and a renewal issued on or after that date.
new text end

Sec. 15.

Minnesota Statutes 2014, section 171.07, subdivision 1, is amended to read:

Subdivision 1.

License; contents.

(a) Upon the payment of the required fee, the
department shall issue to every qualifying applicant a license designating the type or
class of vehicles the applicant is authorized to drive as applied for. This license must
bear a distinguishing number assigned to the licensee; the licensee's full name and date
of birth; either (1) the licensee's residence address, or (2) the designated address under
section 5B.05; a description of the licensee in a manner as the commissioner deems
necessary; and the usual signature of the licensee. No license is valid unless it bears
the usual signature of the licensee. Every license must bear a colored photograph or an
electronically produced image of the licensee. new text begin A driving privilege license must be plainly
marked "FOR DRIVING ONLY."
new text end

(b) If the United States Postal Service will not deliver mail to the applicant's
residence address as listed on the license, then the applicant shall provide verification from
the United States Postal Service that mail will not be delivered to the applicant's residence
address and that mail will be delivered to a specified alternate mailing address. When an
applicant provides an alternate mailing address under this subdivision, the commissioner
shall use the alternate mailing address in lieu of the applicant's residence address for
all notices and mailings to the applicant.

(c) Every license issued to an applicant under the age of 21 must be of a
distinguishing color and plainly marked "Under-21."

(d) The department shall use processes in issuing a license that prohibit, as nearly as
possible, the ability to alter or reproduce a license, or prohibit the ability to superimpose a
photograph or electronically produced image on a license, without ready detection.

(e) A license issued to an applicant age 65 or over must be plainly marked "senior" if
requested by the applicant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2016, for a new driver's
license, permit, or identification card, and a renewal issued on or after that date.
new text end

Sec. 16.

new text begin [174.38] ACTIVE TRANSPORTATION PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Administering authority" or "authority" means the commissioner of
transportation, the joint powers board under section 297A.992, or the council, as
appropriate.
new text end

new text begin (c) "Bond-eligible cost" means:
new text end

new text begin (1) expenditures under this section for acquisition of land or permanent easements,
predesign, design, preliminary and final engineering, environmental analysis, construction,
and reconstruction of publicly owned infrastructure in this state with a useful life of at
least ten years that provides for nonmotorized transportation;
new text end

new text begin (2) preparation of land for which a nonmotorized transportation route is established,
including demolition of structures and remediation of any hazardous conditions on the
land; and
new text end

new text begin (3) the unpaid principal on debt issued by a political subdivision for a nonmotorized
transportation project.
new text end

new text begin (d) "Council" means the Metropolitan Council, as defined under section 473.121,
subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Programs established. new text end

new text begin (a) Upon availability of funds specifically provided
to an administering authority for purposes of this section, the authority shall establish a
program to support bicycling, pedestrian activities, and other forms of nonmotorized
transportation as provided in this section.
new text end

new text begin (b) Subject to the requirements of this section, the authority may provide grants
or other financial assistance for a project.
new text end

new text begin Subd. 3. new text end

new text begin Active transportation accounts. new text end

new text begin (a) An active transportation account
is established in the bond proceeds fund. The account consists of state bond proceeds
appropriated to the commissioner or the council. Money in the account may only be
expended on bond-eligible costs of a project receiving financial assistance under this
section. All uses of funds from the account must be for publicly owned property.
new text end

new text begin (b) A greater Minnesota active transportation account is established in the special
revenue fund. The account consists of funds as provided by law, and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in the account
may only be expended on a project that is primarily located outside of the metropolitan
transit improvement area, as defined in section 297A.9925, subdivision 1, and receiving
financial assistance as provided under this section.
new text end

new text begin (c) A metropolitan area active transportation account is established in the special
revenue fund. The account consists of funds as provided by law, and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in the account
may only be expended on a project that is primarily located within the metropolitan transit
improvement area, as defined in section 297A.9925, subdivision 1, and receiving financial
assistance as provided under this section.
new text end

new text begin Subd. 4. new text end

new text begin Program administration. new text end

new text begin (a) The authority shall establish program
requirements, including:
new text end

new text begin (1) eligibility for assistance, subject to the requirements under paragraph (b);
new text end

new text begin (2) a process for solicitation and application that minimizes applicant burdens; and
new text end

new text begin (3) procedures for award and payment of financial assistance.
new text end

new text begin (b) Eligible recipients of financial assistance under this section are:
new text end

new text begin (1) a political subdivision; and
new text end

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

new text begin (c) The authority shall make reasonable efforts to publicize each solicitation
for applications among all eligible recipients, and provide assistance in creating and
submitting applications.
new text end

new text begin (d) The authority may expend no more than one percent of available funds in a fiscal
year under this section on program administration.
new text end

new text begin Subd. 5. new text end

new text begin State general obligation bond funds. new text end

new text begin The legislature determines that
many nonmotorized transportation infrastructure projects will constitute betterments and
capital improvements within the meaning of Minnesota Constitution, article XI, section 5,
paragraph (a), and capital expenditures under generally accepted accounting principles,
and will be financed more efficiently and economically under this section than by direct
appropriations for specific projects.
new text end

new text begin Subd. 6. new text end

new text begin Use of funds. new text end

new text begin (a) For a project funded through state bond proceeds under
this section, financial assistance is limited solely to bond-eligible costs.
new text end

new text begin (b) Subject to paragraph (a), the authority shall determine permissible uses of
financial assistance under this section, which must include:
new text end

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

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

new text begin Subd. 7. new text end

new text begin Project evaluation and selection. new text end

new text begin The authority shall establish a project
evaluation and selection process under this section that is competitive, criteria-based, and
objective. The process must include criteria and prioritization of projects based on:
new text end

new text begin (1) inclusion of the project in a municipal or regional nonmotorized transportation
system plan;
new text end

new text begin (2) location of the project in a jurisdiction in which a complete streets policy, as
provided under section 174.75, is in effect;
new text end

new text begin (3) the extent to which the project supports development of continuous and
convenient safe routes to school;
new text end

new text begin (4) the extent to which the project supports development of routes to and connections
with educational facilities, centers of employment, governmental services, health care
facilities, food sources, transit facilities, and other community destinations;
new text end

new text begin (5) general benefits to public health and safety as a result of the project; and
new text end

new text begin (6) geographic equity in project benefits, as well as benefits in areas or locations
experiencing high rates of pedestrian or bicycle collisions, high rates of health disparities,
and high concentration of poverty.
new text end

new text begin Subd. 8. new text end

new text begin Grant cancellation. new text end

new text begin If, five years after execution of a grant agreement,
the authority determines that the grantee has not proceeded in a timely manner with
implementation of the project funded, the commissioner must cancel the grant and
the grantee must repay to the commissioner all grant money paid to the grantee for
deposit in the active transportation account from which the grant was originally paid.
Section 16A.642 applies to any appropriations made from the bond proceeds fund to the
commissioner under this section that have not been awarded as financial assistance.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2014, section 174.42, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Funding requirement for greater Minnesota. new text end

new text begin In each federal fiscal year,
the commissioner shall spend out of National Highway Performance Program funds a total
amount in federal transportation funds for an active transportation competitive grant
program in greater Minnesota that totals a minimum of $16,000,000 in excess of the
average annual spending on greater Minnesota transportation alternatives projects under
section 174.38 in federal fiscal years between October 2009 and September 2012. National
Highway Performance Program funds may be converted to Surface Transportation
Program funds or Transportation Alternative Program funds to fulfill the requirements
of this section. This requirement must not reduce the amount of federal transportation
funding for metropolitan projects.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2015.
new text end

Sec. 18.

Minnesota Statutes 2014, section 174.50, is amended by adding a subdivision
to read:

new text begin Subd. 6d. new text end

new text begin Major local bridges account. new text end

new text begin The major local bridges account is created
in the Minnesota state transportation fund for money appropriated, allocated, or transferred
into the account to fund major local bridge projects. For purposes of this subdivision, a
major local bridge project is a project that carries a total cost in excess of $30,000,000.
new text end

Sec. 19.

new text begin [219.016] RAILROAD COMPANY ASSESSMENT; ACCOUNT;
APPROPRIATION.
new text end

new text begin (a) As provided in this section, the commissioner shall annually assess railroad
companies that are (1) defined as common carriers under section 218.011; (2) classified by
federal law or regulation as Class I Railroads or Class I Rail Carriers; and (3) operating in
this state. The total assessment amount may not exceed $32,500,000 annually.
new text end

new text begin (b) The assessment must be by a division of the annual appropriation to the grade
crossing safety improvement account in equal proportion between carriers based on route
miles operated in Minnesota, assessed in equal amounts for 365 days of the calendar year.
new text end

new text begin (c) The assessments must be deposited in the rail grade crossing safety improvement
account, which is created in the special revenue fund. Money in the account is
appropriated to the commissioner for the creation of a rail safety office within the
Department of Transportation, not to exceed $1,400,000 in each year; the development,
administration, and construction of highway-rail grade crossing improvements on rail
corridors transporting crude oil; and other selected routes, including those carrying
hazardous materials. Improvements may include upgrades to existing protection systems,
the closing of crossings and necessary roadwork, and reconstruction of at-grade crossings
to full grade separations. Funds in the account are available until expended.
new text end

Sec. 20.

Minnesota Statutes 2014, 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 of a rail user or a rail carrier;

(3) to pay a portion of the costs of rehabilitation projects designed to improve rail
service of a rail user or a rail carrier;

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

(5) 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;

(6) to pay a portion of the costs of acquiring a rail line by a regional railroad
authority established pursuant to chapter 398A;

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

(8) for expenditures made before July 1, 2017, to pay the state matching portion
of grants under the federal Transportation Investment Generating Economic Recovery
(TIGER) program of the United States Department of Transportation; deleted text begin and
deleted text end

(9) to fund rail planning studies new text begin ; and
new text end

new text begin (10) to pay a portion of the costs of capital improvement projects designed to
improve capacity or safety at rail yards new text end .

(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. 21.

Minnesota Statutes 2014, section 360.305, subdivision 4, is amended to read:

Subd. 4.

Costs allocated; local contribution; hangar construction account.

(a)
deleted text begin Except as otherwise provided in this subdivision deleted text end new text begin Annually by June 1 new text end , the commissioner
of transportation shall deleted text begin require as a condition of assistance by the state that the deleted text end new text begin establish
local contribution rates which will apply to a new text end political subdivision, municipality, or public
corporation deleted text begin make a substantial contribution to the cost of the construction, improvement,
maintenance, or operation of the airport, in connection with which the assistance of the
state is sought. These costs are referred to as project costs deleted text end new text begin when applying for state or
federal funding assistance to construct, improve, maintain, or operate an airport, or to
acquire land for airport facilities or clear zones. If the commissioner does not establish
local contribution rates by June 1, the previous rates apply new text end .

(b) deleted text begin For any airport, whether key, intermediate, or landing strip, where only state and
local funds are to be used, the contribution shall be not less than one-fifth of the sum of:
deleted text end

deleted text begin (1) the project costs;
deleted text end

deleted text begin (2) acquisition costs of the land and clear zones, which are referred to as acquisition
costs. deleted text end new text begin The commissioner may pay all costs beyond the local contribution. Local
contribution rates shall not be less than five percent of the total cost of the activity or
acquisition, except that the commissioner may require less than five percent for research
projects, radio or navigational aids, activities, or acquisitions for which federal funds are
available to cover more than 90 percent of the total cost, or as otherwise necessary to
respond to an emergency.
new text end

(c) deleted text begin For any airport where federal, state, and local funds are to be used, the
contribution shall not be less than five percent of the sum of the project costs and
acquisition costs. deleted text end new text begin The commissioner's establishment of local contribution rates is not
subject to the rulemaking requirements of chapter 14.
new text end

deleted text begin (d) The commissioner may pay the total cost of radio and navigational aids.
deleted text end

deleted text begin (e) Notwithstanding paragraph (b) or (c), the commissioner may pay all of the
project costs of a new landing strip, but not an intermediate airport or key airport, or may
pay an amount equal to the federal funds granted and used for a new landing strip plus
all of the remaining project costs; but the total amount paid by the commissioner for the
project costs of a new landing strip, unless specifically authorized by an act appropriating
funds for the new landing strip, shall not exceed $200,000.
deleted text end

deleted text begin (f) Notwithstanding paragraph (b) or (c), the commissioner may pay all the project
costs for research and development projects, including, but not limited to noise abatement;
provided that in no event shall the sums expended under this paragraph exceed five
percent of the amount appropriated for construction grants.
deleted text end

deleted text begin (g) deleted text end new text begin (d) new text end To receive aid under this section deleted text begin for project costs or for acquisition costs deleted text end , the
municipality must enter into an agreement with the commissioner giving assurance that
the airport will be operated and maintained in a safe, serviceable manner for aeronautical
purposes only for the use and benefit of the public:

(1) for 20 years after the date deleted text begin that deleted text end new text begin the municipality receives new text end any state funds for
deleted text begin project deleted text end new text begin construction or improvement new text end costs deleted text begin are received by the municipality deleted text end ; and

(2) for 99 years after the date deleted text begin that deleted text end new text begin the municipality receives new text end any state funds for new text begin land
new text end acquisition costs deleted text begin are received by the municipality deleted text end . If any land acquired with state funds
ceases to be used for aviation purposes, the municipality shall repay the state airports fund
the same percentage of the appraised value of the property as that percentage of the costs
of acquisition and participation provided by the state to acquire the land.

The agreement may contain other conditions as the commissioner deems reasonable.

deleted text begin (h) deleted text end new text begin (e) new text end The commissioner shall establish a hangar construction revolving account,
which shall be used for the purpose of financing the construction of hangar buildings to
be constructed by municipalities owning airports. All municipalities owning airports are
authorized to enter into contracts for the construction of hangars, and contracts with
the commissioner for the financing of hangar construction for an amount and period of
time as may be determined by the commissioner and municipality. All receipts from the
financing contracts shall be deposited in the hangar construction revolving account and
are reappropriated for the purpose of financing construction of hangar buildings. deleted text begin The
commissioner may pay from the hangar construction revolving account 80 percent of the
cost of financing construction of hangar buildings. For purposes of this paragraph, the
construction of hangars shall include their design. deleted text end The commissioner shall transfer up to
$4,400,000 from the state airports fund to the hangar construction revolving account.

deleted text begin (i) deleted text end new text begin (f) new text end The commissioner may deleted text begin pay a portion of the purchase price of any deleted text end new text begin contribute
to costs incurred by any municipality for new text end airport maintenance and new text begin operations, new text end safety
equipment new text begin , new text end and deleted text begin of the actual deleted text end airport snow removal deleted text begin costs incurred by any municipality.
The portion to be paid by the state shall not exceed two-thirds of the cost of the purchase
price or snow removal. To receive aid a municipality must enter into an agreement of the
type referred to in paragraph (g) deleted text end .

deleted text begin (j) deleted text end new text begin (g) new text end This subdivision applies only to project costs or acquisition costs of
municipally owned airports incurred after June 1, 1971.

Sec. 22. new text begin COMMUTER RAIL TRANSIT FEASIBILITY STUDY.
new text end

new text begin Subdivision 1. new text end

new text begin Scope of study. new text end

new text begin The Metropolitan Council shall conduct a study of
the feasibility of the use of commuter rail transit in a corridor aligned on marked Interstate
Highway 394 or between marked Interstate Highway 394 and marked Trunk Highway
55, from downtown Minneapolis to Ridgedale Drive in Minnetonka, with the alternative
of extending to Wayzata. The study must include consideration of the feasibility of
connecting the Southwest Light Rail Transit Corridor with the Interstate Highway 394
Corridor between downtown Minneapolis and a point of divergence west of downtown.
The Metropolitan Council may hire a consultant to assist in the study and report under
subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Elements of study. new text end

new text begin The commuter rail transit feasibility study must
include, without limitation:
new text end

new text begin (1) an identification of major operational characteristics of commuter rail transit
in the corridor;
new text end

new text begin (2) a quantification of capital and operating costs;
new text end

new text begin (3) an evaluation of the interface of a rail transit system with other transportation
systems in the corridor;
new text end

new text begin (4) an evaluation of the impact of a rail transit system on land use and urban
development;
new text end

new text begin (5) an estimate of the cost and impact of necessary associated exercise of eminent
domain;
new text end

new text begin (6) an evaluation of the impact of a rail transit system on energy and the environment;
new text end

new text begin (7) an estimate of ridership potential;
new text end

new text begin (8) a cost-benefit analysis that compares the total cost of the project with the benefits
of a commuter rail transit line to its users, other users of the highway, and adjacent
property owners;
new text end

new text begin (9) an identification of potential sources of federal, state, local, private, and other
funds;
new text end

new text begin (10) an identification of the conditions necessary for commuter rail transit to be
feasible in the Interstate Highway 394 Corridor; and
new text end

new text begin (11) an evaluation of the feasibility of connecting the Southwest Light Rail Transit
Corridor with the Interstate Highway 394 Corridor between downtown Minneapolis and
a point of divergence west of downtown.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The Metropolitan Council shall prepare a written report of this
study and submit it no later than December 15, 2015, to the legislature, in compliance
with Minnesota Statutes, sections 3.195 and 3.197, and to the chairs and ranking minority
members of the senate and house of representatives committees with jurisdiction over
transportation.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 23. new text begin ENVIRONMENTAL IMPACT STATEMENT; CERTAIN TRACK
CONNECTION PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "track connection project"
means a rail construction project that:
new text end

new text begin (1) is in a county within which there is located a city of the first class, as provided in
Minnesota Statutes, section 410.01;
new text end

new text begin (2) is located at or near the site of two intersecting tracks of rail; and
new text end

new text begin (3) establishes switches, turnouts, or other forms of connecting track between
the two intersecting tracks, in which (i) the tracks are owned by two different railroad
companies, and (ii) the project provides for alternative routing of unit trains, as defined
in Minnesota Statutes, section 115E.01, subdivision 11d, transported as of the effective
date of this section on either of the intersecting tracks through a city of the first class
identified in clause (1).
new text end

new text begin Subd. 2. new text end

new text begin Environmental impact statement. new text end

new text begin An environmental impact statement
must be conducted under Minnesota Statutes, section 116D.04, and applicable
Environmental Quality Board rules governing track connection projects, to make a
determination concerning the existence of a local safety or security hazard under
applicable federal law. The Department of Transportation shall serve as the responsible
governmental unit for the environmental impact statement. A track connection project
may not begin construction and no final governmental decision may be made to grant a
permit, approve the project, or begin the project until the commissioner of transportation
has determined the environmental impact statement is adequate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires December 31, 2018.
new text end

Sec. 24. new text begin ELECTION JUDGE TRAINING.
new text end

new text begin The secretary of state shall inform each county auditor that a driving privilege
license as defined in Minnesota Statutes, section 171.01, subdivision 31c, must not be used
or accepted for voter registration purposes under Minnesota Statutes, section 201.061.
Each county auditor must inform all election officials and election judges hired for an
election that a driving privilege license must not be used or accepted for voter registration
purposes under Minnesota Statutes, section 201.061. County auditors and municipal
clerks must include this information in all election judge training courses.
new text end

Sec. 25. new text begin PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Public-private partnership initiatives. new text end

new text begin (a) The commissioner
of transportation and Metropolitan Council are authorized to consider and utilize
public-private partnership procurement methods for up to three pilot projects as provided
in this section. Utilization of public-private partnerships is a recognition of the importance
to the state of an efficient and safe transportation system, and the necessity of developing
alternative funding sources to supplement traditional sources of transportation revenues.
A public-private partnership initiative must take advantage of the expertise and experience
of public employees and private sector efficiencies in design and construction, along with
expertise in finance and development, and provide a better long-term value for the state
than could be obtained through traditional procurement methods.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 160.98, or any other law to the
contrary, the commissioner or council may consider for use in the pilot program any
existing public-private partnership mechanism or any proposed mechanism that proves the
best available option for the state. Mechanisms the commissioner or council may consider
include, but are not limited to, toll facilities, BOT facilities, BTO facilities, user fees,
construction payments, joint development agreements, negotiated exactions, air rights
development, street improvement districts, or tax increment financing districts for transit.
For the purposes this section, toll facilities, BOT facilities, and BTO facilities have the
meanings given under Minnesota Statutes, section 160.84.
new text end

new text begin (c) As part of the pilot program, the commissioner and council are directed to form
an independent advisory and oversight office, the Joint Program Office for Economic
Development and Alternative Finance. The office shall consist of the commissioner of
management and budget, the commissioner of employment and economic development,
the commissioner of administration, the commissioner of transportation, the Metropolitan
Council, and one representative each from the American Council of Engineering
Companies - Minnesota chapter, the Central Minnesota Transportation Alliance, the
Counties Transit Improvement Board, and the Minnesota County Engineers Association.
In addition, the commissioner and Metropolitan Council shall invite the Federal Highway
Administration and the Federal Transit Administration to participate in the office's
activities. The office's duties shall include, but are not limited to, reviewing and approving
projects proposed under this section, reviewing any contractual or financial agreements
to ensure program requirements are met, and ensuring that any proposed or executed
agreement serves the public interest.
new text end

new text begin Subd. 2. new text end

new text begin Pilot program restrictions and project selection. new text end

new text begin (a) The commissioner
or council may receive or solicit and evaluate proposals to build, operate, and finance
projects that are not inconsistent with the commissioner's most recent statewide
transportation plan or the council's most recent transportation policy plan. If the
department or council receives an unsolicited proposal, the department or council shall
publish a notice in the State Register at least once a week for two weeks stating that the
department or council has received the proposal and will accept, for 120 days after the
initial date of publication, other proposals for the same project purpose. The private
proposer must be selected on a competitive basis.
new text end

new text begin (b) When entering into a public-private partnership, the commissioner or
Metropolitan Council may not enter into any noncompete agreement that inhibits the
state's ability to address ongoing or future infrastructure needs.
new text end

new text begin (c) If the commissioner or council enters into a public-private partnership agreement
that includes a temporary transfer of ownership or control of a road, bridge, or other
infrastructure investment to the private entity, the agreement must include a provision
requiring the return of the road, bridge, or other infrastructure investment to the state
after a specified period of time.
new text end

new text begin (d) The commissioner and council may only consider new projects for a
public-private partnership. The commissioner and council are prohibited from considering
projects involving existing infrastructure for a public-private partnership, unless the
proposed project adds capacity to the existing infrastructure.
new text end

new text begin Subd. 3. new text end

new text begin Evaluation and selection of private entity and project. new text end

new text begin (a) The
commissioner and council shall contract with one or more consultants to assist in proposal
evaluation. The consultant must possess expertise and experience in public-private
partnership project evaluation methodology, such as value for money, costs of
public-private partnership compared with costs of public project delivery, and cost-benefit
analysis.
new text end

new text begin (b) When soliciting, evaluating, and selecting a private entity with which to enter
into a public-private partnership and before selecting a project, the commissioner or
council must consider:
new text end

new text begin (1) the ability of the proposed project to improve safety, reduce congestion, increase
capacity, and promote economic growth;
new text end

new text begin (2) the proposed cost of and financial plan for the project;
new text end

new text begin (3) the general reputation, qualifications, industry experience, and financial capacity
of the private entity;
new text end

new text begin (4) the project's proposed design, operation, and feasibility;
new text end

new text begin (5) length and extent of transportation and transit service disruption;
new text end

new text begin (6) comments from local citizens and affected jurisdictions;
new text end

new text begin (7) benefits to the public;
new text end

new text begin (8) the safety record of the private entity; and
new text end

new text begin (9) any other criteria the commissioner or council deems appropriate.
new text end

new text begin (c) The independent advisory and oversight office established under subdivision 1,
paragraph (c), shall, in collaboration with authorized representatives of Department of
Transportation workers, review proposals evaluated by the commissioner or council to
ensure the requirements of this section are being met. The independent advisory and
oversight office shall first determine whether the project, as proposed, serves the public
interest. In making this determination, the office must identify and consider advantages
and disadvantages for various stakeholders, including taxpayers, workers, transportation
and transit providers and operators, transportation and transit users, commercial vehicle
operators, and the general public, including the impact on the state's economy. If the
proposed project serves the public interest, the office must evaluate the proposals
according to the criteria specified in this section.
new text end

new text begin Subd. 4. new text end

new text begin Public-private agreement. new text end

new text begin (a) A public-private agreement between the
commissioner or the council and a private entity shall, at a minimum, specify:
new text end

new text begin (1) the planning, acquisition, financing, development, design, construction,
reconstruction, replacement, improvement, maintenance, management, repair, leasing, or
operation of the project;
new text end

new text begin (2) the term of the public-private agreement;
new text end

new text begin (3) the type of property interest, if any, that the private entity will have in the project;
new text end

new text begin (4) a description of the actions the commissioner or council may take to ensure
proper maintenance of the project;
new text end

new text begin (5) whether user fees will be collected on the project and the basis by which the user
fees shall be determined and modified along with identification of the public agency that
will determine and modify fees;
new text end

new text begin (6) compliance with applicable federal, state, and local laws;
new text end

new text begin (7) grounds for termination of the public-private agreement by the commissioner
or council;
new text end

new text begin (8) adequate safeguards for the traveling public and residents of the state in event of
default on the contract;
new text end

new text begin (9) the extent and nature of involvement of public employees in the proposed project;
new text end

new text begin (10) financial protection for the state in the event of default; and
new text end

new text begin (11) procedures for amendment of the agreement.
new text end

new text begin (b) A public-private agreement between the commissioner or council and a private
entity may provide for:
new text end

new text begin (1) review and approval by the commissioner or council of the private entity's plans
for the development and operation of the project;
new text end

new text begin (2) inspection by the commissioner or council of construction and improvements
to the project;
new text end

new text begin (3) maintenance by the private entity of a liability insurance policy;
new text end

new text begin (4) filing of appropriate financial statements by the private entity on a periodic basis;
new text end

new text begin (5) filing of traffic reports by the private entity on a periodic basis;
new text end

new text begin (6) financing obligations of the commissioner or council and the private entity;
new text end

new text begin (7) apportionment of expenses between the commissioner or council and the private
entity;
new text end

new text begin (8) the rights and remedies available in the event of a default or delay;
new text end

new text begin (9) the rights and duties of the private entity, the commissioner or council, and other
state or local governmental entities with respect to the use of the project;
new text end

new text begin (10) the terms and conditions of indemnification of the private entity by the
commissioner or council;
new text end

new text begin (11) assignment, subcontracting, or other delegations of responsibilities of (i)
the private entity, or (ii) the commissioner or council under agreement to third parties,
including other private entities or state agencies;
new text end

new text begin (12) if applicable, sale or lease to the private entity of private property related to
the project;
new text end

new text begin (13) traffic enforcement and other policing issues; and
new text end

new text begin (14) any other terms and conditions the commissioner or council deems appropriate.
new text end

new text begin (c) The independent advisory and oversight office established under subdivision
1, paragraph (c), shall review any proposed contractual agreement prior to execution
in order to ensure that the contract serves the public interest and the requirements of
this section are met.
new text end

new text begin Subd. 5. new text end

new text begin Funding from federal government. new text end

new text begin (a) The commissioner or council may
accept from the United States or any of its agencies funds that are available to the state
for carrying out the pilot program, whether the funds are available by grant, loan, or
other financial assistance.
new text end

new text begin (b) The commissioner or council may enter into agreements or other arrangements
with the United States or any of its agencies as necessary for carrying out the pilot program.
new text end

new text begin (c) The commissioner or council shall seek to maximize project funding from
nonstate sources and may combine federal, state, local, and private funds to finance a
public-private partnership pilot project.
new text end

new text begin Subd. 6. new text end

new text begin Reporting. new text end

new text begin By August 1, 2016, and annually by August 1 thereafter, the
commissioner and council shall submit to the chairs and ranking minority members of the
house of representatives and senate committees having jurisdiction over transportation
policy and finance a list of all agreements executed under the pilot program authority. The
list must identify each agreement, the contracting entities, contract amount and duration,
any repayment requirements, and provide an update on the project's progress. The list
may be submitted electronically and is subject to Minnesota Statutes, section 3.195,
subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end

Sec. 26. new text begin TRANSPORTATION PROJECT SELECTION PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Adoption of process and public input. new text end

new text begin The commissioner of
transportation shall, after consultation with metropolitan planning organizations, regional
development commissions, area transportation partnerships, local governments, and the
Metropolitan Council, draft a proposed transportation project data-driven evaluation
process to provide an objective and consistent analysis to assist in developing the
statewide transportation plan and prioritization of highway construction, reconstruction,
and improvement projects in the state transportation improvement program. No later than
September 1, 2015, the proposed process must be reported to the chairs and ranking
minority members of the senate and house of representatives committees on transportation
policy and finance and publicized, along with a schedule for public hearings and additional
opportunities for public input electronically and at locations throughout the state. No later
than January 10, 2016, after public comment has been heard and incorporated into the
proposed evaluation process, the commissioner shall adopt a final process for use in
highway project investment decisions on and after March 1, 2016.
new text end

new text begin Subd. 2. new text end

new text begin Factors in analysis. new text end

new text begin The process must be based on objective, consistent,
and quantifiable analysis. Factors in the analysis must include return on investment,
benefit-cost, local rankings, safety, congestion mitigation, economic development,
accessibility, environmental quality, regional and metropolitan-rural balance, and land
use. The process may assign different weights to factors in evaluating projects on the
trunk highway system, the county state-aid highway system, and the municipal state-aid
street system.
new text end

new text begin Subd. 3. new text end

new text begin Exemptions. new text end

new text begin A proposed project is exempt from the process if it is:
new text end

new text begin (1) funded by a grant from:
new text end

new text begin (i) the corridors of commerce program under Minnesota Statutes, section 161.088;
new text end

new text begin (ii) the transportation economic development program under Minnesota Statutes,
section 174.12; and
new text end

new text begin (iii) the joint powers board under Minnesota Statutes, section 297A.992, subdivision
6; or
new text end

new text begin (2) preservation, maintenance, capital preventive treatment or safety project that
does not increase capacity of the infrastructure, or if subjecting it to the evaluation process
would result in a loss of federal funds.
new text end

new text begin Subd. 4. new text end

new text begin Information on department's Web site. new text end

new text begin For each proposed project
evaluated under this process, the applicable scoring process, the score for each factor,
and the overall score are public information and must be publicized on the department's
Web site.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 27. new text begin ESTABLISHMENT OF ROAD-USER CHARGE WORKING GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Road-user charge. new text end

new text begin The road-user charge working group is
established to study and report to the legislature concerning issues related to designing
and implementing a road-user charge in this state. The road-user charge working group
consists of 15 members, as follows:
new text end

new text begin (1) the chairs and ranking minority members of the house of representatives and
senate committees or divisions with jurisdiction over transportation policy and finance;
new text end

new text begin (2) the commissioner of transportation or a designee; and
new text end

new text begin (3) public members who have relevant expertise and interest, including members or
representatives of transportation user groups; the telecommunications industry; the data
security and privacy industry; privacy rights advocacy groups; and research and policy
making bodies. Of these members, five must be appointed by the speaker of the house,
and five must be appointed by the majority leader of the senate.
new text end

new text begin Subd. 2. new text end

new text begin Duties of road-user charge working group. new text end

new text begin The working group shall
identify and consider policy and technical issues related to funding state transportation
infrastructure through implementation of a road-user charge as an alternative to the motor
fuels tax. The working group shall study and make recommendations concerning cost,
privacy, jurisdictional issues, feasibility, complexity, public acceptance, use of revenues,
possible constitutional dedication, security, compliance, data collection technology that
includes privacy and user options, implementation, and related issues. In addition, the
working group shall seek and facilitate collaboration with other states; review pilot project
and implementation results from other states and countries; and explore federal funding
opportunities.
new text end

new text begin Subd. 3. new text end

new text begin Report of working group. new text end

new text begin By January 15, 2017, the working group shall
submit a report to the chairs of the committees in the senate and house of representatives
with primary jurisdiction over transportation policy and transportation finance. The report
must state findings and recommendations concerning a road-user charge. The report may
recommend the development by the commissioner of transportation of an implementation
plan that may:
new text end

new text begin (1) identify a project implementation timeline, which may include pilot programs,
limited initial deployment, multiple fee structure options for road users, and phased
implementation;
new text end

new text begin (2) identify a fee structure, which must include distance traveled and may include
additional factors such as vehicle weight, vehicle impact on roadways, fuel type, and
vehicle type;
new text end

new text begin (3) include a fiscal analysis that identifies costs, revenue projections, and any
associated tax rate changes;
new text end

new text begin (4) establish a technological and operational architecture for the system;
new text end

new text begin (5) address program and system administration, including but not limited to data
privacy, data integrity, and accuracy of information; and
new text end

new text begin (6) be based in surface transportation finance principles, including:
new text end

new text begin (i) efficiency, including impacts on road system use and land use;
new text end

new text begin (ii) equity across road system users and vehicles, including (A) user payment
relative to user costs imposed; (B) the distribution of the burden of a fee structure that
includes the factors required under Minnesota Statutes, section 270C.13, subdivision 1,
clauses (1) to (3); and (C) identification of and possible fiscal offsets for any disparate
impact on users based on geographic location of their residency;
new text end

new text begin (iii) revenue adequacy and long-term suitability of funding after complete
implementation;
new text end

new text begin (iv) environmental impacts and sustainability;
new text end

new text begin (v) administrative and technical feasibility, including data privacy and protection;
new text end

new text begin (vi) transparency; and
new text end

new text begin (vii) accountability.
new text end

new text begin Subd. 4. new text end

new text begin Administrative provisions. new text end

new text begin (a) The commissioner of transportation or
the commissioner's designee shall convene the initial meeting of the working group no
later than September 1, 2015. Upon request of the working group, the commissioner shall
provide meeting space and administrative services for the group. The members of the
working group shall elect a chair or cochairs from the members of the working group at
the initial meeting.
new text end

new text begin (b) Public members of the working group serve without compensation or payment of
expenses.
new text end

new text begin (c) The working group expires May 1, 2017, or upon submission of the report
required under subdivision 3, whichever is earlier.
new text end

new text begin (d) The working group may accept gifts and grants, which are accepted on behalf of
the state and constitute donations to the state. Funds received under this paragraph are
appropriated to the commissioner of transportation for purposes of the working group.
new text end

new text begin Subd. 5. new text end

new text begin Deadline for appointments and designations. new text end

new text begin The appointments and
designations for the road-user charge working group must be completed by August 1, 2015.
new text end

Sec. 28. new text begin REGULAR ROUTE TRANSIT REQUIREMENT.
new text end

new text begin By September 1, 2015, the Metropolitan Council shall institute regular route transit
service to the city of Hastings, provided that the governing body of the city of Hastings
has entered into an agreement with the Metropolitan Council, no later than July 1, 2015, to
become a part of the transit taxing district under Minnesota Statutes, section 473.4461.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 29. new text begin ENHANCED ORGANIZATIONAL EFFECTIVENESS AND
INNOVATION REVIEW.
new text end

new text begin (a) A review and assessment of the organizational structure of the Department of
Transportation is required to enhance organizational effectiveness, encourage prudent
allocation of resources, and deliver the greatest value to Minnesota. This review and
assessment shall be completed by a partnership that includes the Humphrey School of
Public Affairs, Carlson School of Management, and the State Smart Transportation
Initiative at the University of Wisconsin.
new text end

new text begin (b) A preliminary report of this review and assessment shall be submitted to the
chairs and ranking minority members of the legislative committees having jurisdiction
over transportation policy and finance by December 15, 2015, with the final report
submitted by June 30, 2016.
new text end

new text begin (c) At a minimum, the review and assessment shall include:
new text end

new text begin (1) the relationship of each district, division, office, and section of the department to
the state's transportation goals under Minnesota Statutes, section 174.01, the department's
mission under Minnesota Statutes, section 174.02, the duties of the commissioner under
Minnesota Statutes, section 174.03, the annual performance targets under Minnesota
Statutes, section 174.03, subdivision 1c, and adherence to all relevant provisions of state
statute and federal law;
new text end

new text begin (2) the budget assigned to each district, division, office, and section of the department;
new text end

new text begin (3) the ratio of employees to supervisors in each district, division, office, and section
of the department;
new text end

new text begin (4) recommendations identifying best practices, and comparisons with other state
departments of transportation;
new text end

new text begin (5) recommendations regarding the appropriate ratio of employees to supervisors
for the variety of activities performed by the department;
new text end

new text begin (6) recommendations regarding the appropriate increase in department operations
resulting from increases in capital investments;
new text end

new text begin (7) recommendations regarding the appropriate fiscal responsibility assigned to
construction inspectors and engineers;
new text end

new text begin (8) recommendations regarding the appropriate, fiscally constrained size of the
trunk highway system; and
new text end

new text begin (9) recommendations regarding how to achieve the appropriate, fiscally constrained
size of the trunk highway system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 30. new text begin ACTIVE TRANSPORTATION PROGRAM DEVELOPMENT.
new text end

new text begin (a) By October 1, 2015, the Advisory Committee on Nonmotorized Transportation
under Minnesota Statutes, section 174.37, shall develop and submit recommendations to
each administering authority under Minnesota Statutes, section 174.38, for developing
project evaluation and selection processes under Minnesota Statutes, section 174.38,
subdivision 7. The advisory committee may consult with representatives from the
Bicycle Alliance of Minnesota, Minnesota Chamber of Commerce, Metropolitan
Council Transportation Accessibility Advisory Committee, Minnesota Department of
Transportation district area transportation partnerships, Minnesota State Council on
Disability, organizations representing elderly populations, and public health organizations
with experience in active transportation.
new text end

new text begin (b) In its next annual report under Minnesota Statutes, section 174.37, subdivision
4, the advisory committee shall include a summary of the recommendations under this
section and submit a copy to the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation policy and finance. The report is subject
to Minnesota Statutes, section 3.195.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 31. new text begin REPORT ON DEDICATED FUND EXPENDITURES.
new text end

new text begin By January 15, 2016, the commissioner of management and budget shall submit
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation finance. The report must list detailed expenditures and
transfers from the trunk highway fund and highway user tax distribution fund for fiscal
years 2010 through 2015, and shall include information on the purpose of each expenditure.
new text end

Sec. 32. new text begin ROAD DESIGN STANDARDS.
new text end

new text begin By August 15, 2016, the commissioner of transportation shall, in collaboration
with city and county engineers, establish and adopt design standards and guidelines to
be applied consistently to trunk highways, county state-aid highways, and municipal
state-aid streets with similar characteristics. The standards and guidelines must align the
state-aid standards with the Department of Transportation trunk highway standards and
technical memoranda as appropriate. The commissioner shall report the adopted standards
and guidelines to the chairs and ranking minority members of the senate and house of
representatives committees with jurisdiction over transportation policy by August 15,
2016, and present an interim report by March 15, 2016.
new text end

new text begin EFFECTIVE DATE. new text end

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