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HF 4889

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/13/2024 12:18pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to transportation; imposing a road usage charge for all-electric vehicles;
requiring a report; appropriating money; amending Minnesota Statutes 2022,
sections 13.6905, by adding a subdivision; 168.002, by adding a subdivision;
168.013, subdivision 1m; proposing coding for new law in Minnesota Statutes,
chapter 168.

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

Section 1.

Minnesota Statutes 2022, section 13.6905, is amended by adding a subdivision
to read:


new text begin Subd. 38. new text end

new text begin Road usage charge data. new text end

new text begin Data related to road usage charges are governed
by section 168.0132.
new text end

Sec. 2.

Minnesota Statutes 2022, section 168.002, is amended by adding a subdivision to
read:


new text begin Subd. 1a. new text end

new text begin All-electric vehicle. new text end

new text begin "All-electric vehicle" has the meaning given in section
169.011, subdivision 1a.
new text end

Sec. 3.

Minnesota Statutes 2022, section 168.013, subdivision 1m, is amended to read:


Subd. 1m.

Electric vehicle.

new text begin (a) new text end In addition to the tax under subdivision 1a, a surcharge
of $75 is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a.
Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision must
be deposited in the highway user tax distribution fund.

new text begin (b) This subdivision applies to a registration period starting on or before June 30, 2025.
new text end

Sec. 4.

new text begin [168.0132] ROAD USAGE CHARGE.
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.
new text end

new text begin (b) "Account provider" means a person, firm, corporation, or partnership of firms or
corporations that performs road usage charge management for enrolled vehicle owners and
usage charge calculation under an agreement with the commissioner.
new text end

new text begin (c) "Adjustment rate" means $0.065.
new text end

new text begin (d) "Analogous fuel economy" means an amount of distance traveled by a motor vehicle
as it relates to fuel consumed by the vehicle, in miles per gallon, that applies for a specific
vehicle classification and model year.
new text end

new text begin Subd. 2. new text end

new text begin Usage charge. new text end

new text begin (a) The owner of an all-electric vehicle must pay a road usage
charge. The usage charge is in addition to the tax under section 168.013, subdivision 1a.
The commissioner must impose the usage charge continuously for each registration period,
using the relevant calculation under paragraphs (b), (c), or both.
new text end

new text begin (b) For a billing period in which account management is active for a vehicle, the usage
charge is calculated as:
new text end

new text begin (1) the miles traveled by the vehicle within Minnesota over the billing period; multiplied
by
new text end

new text begin (2) the total excise tax rate for gasoline under section 296A.07, including the surcharge
rate under section 296A.083, divided by the analogous fuel economy, as determined in
subdivision 3.
new text end

new text begin (c) For a billing period in which paragraph (b) does not apply, the usage charge is
calculated as:
new text end

new text begin (1) the estimated average daily vehicle miles traveled per vehicle in Minnesota, multiplied
by the number of days in the billing period; multiplied by
new text end

new text begin (2) the total excise tax rate for gasoline under section 296A.07, including the surcharge
rate under section 296A.083, divided by the analogous fuel economy, as determined in
subdivision 3; plus
new text end

new text begin (3) the adjustment rate, multiplied by the number of days in the billing period.
new text end

new text begin (d) The total road usage charge to an enrolled vehicle owner calculated in paragraph (b)
for an entire vehicle registration period must not exceed the total that would otherwise apply
under a corresponding calculation in paragraph (c).
new text end

new text begin (e) The commissioner must estimate vehicle miles traveled under paragraph (c), clause
(1), in consultation with the commissioner of transportation, using the most recently available
year of data.
new text end

new text begin Subd. 3. new text end

new text begin Analogous fuel economy. new text end

new text begin In consultation with the commissioner of
transportation, the commissioner must determine analogous fuel economy that applies to
each vehicle under this section. The determination must be based on federal data on
automotive trends maintained by the United States Environmental Protection Agency by
identifying:
new text end

new text begin (1) the vehicle classification that applies to the vehicle from among the following types
or successor types as specified by the Environmental Protection Agency: sedan/wagon, car
sport utility vehicle, truck sport utility vehicle, minivan/van, or pickup; and
new text end

new text begin (2) for the vehicle classification, the final estimated real-world fuel economy, in miles
per gallon, for the year matching the model year of the vehicle that is subject to the usage
charge, or if that data is unavailable, for the year prior to the model year of the vehicle. To
the extent feasible, the estimate under this clause must exclude all-electric vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Road usage charge management agreement. new text end

new text begin (a) The commissioner must
enter into an agreement with one or more account providers to perform road usage charge
management. The agreement must include specification of:
new text end

new text begin (1) account provider responsibility to enroll vehicle owners in usage charge management;
new text end

new text begin (2) road usage charge calculation and verification;
new text end

new text begin (3) designated responsibility for road usage charge billing, collections, and remittance,
which may be performed by the commissioner, the account provider, or a combination of
both;
new text end

new text begin (4) policies to determine whether road usage charge management is active for a vehicle;
new text end

new text begin (5) policies on prepayment, account balance minimum, and balance replenishment;
new text end

new text begin (6) audit activity, which must include providing for revising prior usage charges based
on submitted odometer information;
new text end

new text begin (7) account provider responsibility for customer service;
new text end

new text begin (8) road usage charge information that is available to each enrolled vehicle owner, which
must include vehicle miles traveled over each billing period and an overview of usage charge
calculation;
new text end

new text begin (9) requirements governing terms and conditions for enrolled vehicle owners; and
new text end

new text begin (10) standards for data security.
new text end

new text begin (b) The commissioner may award a contract for purposes of this subdivision under the
best value method of contracting in conformance with chapter 16C.
new text end

new text begin Subd. 5. new text end

new text begin Account providers; implementation capability. new text end

new text begin (a) An account provider must
be capable of accurately identifying miles traveled by the vehicle within Minnesota, whether
through a device that is affixed to the vehicle and transmits geolocation information or from
data supplied by a vehicle manufacturer.
new text end

new text begin (b) An account provider must have a reasonable capacity to implement, in the future,
identification of vehicle miles traveled during specific times of day, over specific road
segments, within managed lanes, and in a combination of these situations.
new text end

new text begin Subd. 6. new text end

new text begin Account providers; data practices. new text end

new text begin (a) An account provider must share with
the commissioner the following data on an enrolled vehicle owner:
new text end

new text begin (1) data on the vehicle owner and the vehicle sufficient to identify the appropriate
matching records in the driver and vehicle services information systems;
new text end

new text begin (2) the billing period; and
new text end

new text begin (3) the calculated usage charge amount.
new text end

new text begin (b) An account provider must submit the data listed in paragraph (a) electronically in
the manner and by the date specified by the commissioner.
new text end

new text begin (c) An account provider may not share with the commissioner, and the commissioner
may not otherwise obtain from an account provider, geolocation data for a specifically
identifiable vehicle.
new text end

new text begin (d) An account provider may not share or disseminate data on an enrolled vehicle owner
with an entity other than the commissioner, except pursuant to a court order.
new text end

new text begin (e) Nothing in this subdivision prevents an account provider from sharing or disseminating
summary data, as defined in section 13.02, subdivision 19.
new text end

new text begin (f) Services provided by an account provider under this section are not a government
function for purposes of section 13.05, subdivision 11.
new text end

new text begin (g) An account provider's agreement with the commissioner is subject to section 13.05,
subdivision 6.
new text end

new text begin Subd. 7. new text end

new text begin Odometer data. new text end

new text begin A manufacturer of a new motor vehicle sold or offered for
sale within this state must provide access for vehicle mileage and odometer data to an
account provider for purposes of this section, following authorization by the vehicle owner
or lessee. The access must be provided through an application programming interface or
other similar information technology.
new text end

new text begin Subd. 8. new text end

new text begin Deposit of revenue; appropriation. new text end

new text begin (a) Notwithstanding section 168.013,
subdivision 8, revenue collected by the commissioner under this section must be deposited
as follows:
new text end

new text begin (1) 11 percent in the driver and vehicle services operating account; and
new text end

new text begin (2) the remainder in the highway user tax distribution fund.
new text end

new text begin (b) The amount deposited in the vehicle services operating account under this subdivision
is annually appropriated to the commissioner for payments to account providers and
administrative costs incurred by the commissioner.
new text end

new text begin Subd. 9. new text end

new text begin Legislative report. new text end

new text begin (a) By November 15 annually, the commissioner must
submit a report to the chairs, ranking minority members, and staff of the legislative
committees with jurisdiction over transportation policy and finance concerning the road
usage charge. At a minimum, the report must:
new text end

new text begin (1) provide an implementation overview, including enrollment activity and vehicle miles
traveled;
new text end

new text begin (2) summarize the agreement with each account provider, including information on each
of the specified areas identified under subdivision 5;
new text end

new text begin (3) review road usage charge finances, including total annual collections, appropriations
under subdivision 8, analogous fuel economy amounts, and average daily vehicle miles
traveled estimates; and
new text end

new text begin (4) make recommendations, if any, on legislative changes to road usage charge
requirements.
new text end

new text begin (b) For purposes of this subdivision, "staff" means those employees who are identified
in any of the following roles for the legislative committees: committee administrator,
committee legislative assistant, caucus research, fiscal analysis, counsel, or nonpartisan
research.
new text end

new text begin (c) This subdivision expires June 30, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, and applies to a registration
period starting on or after that date.
new text end

Sec. 5. new text begin ROAD USAGE CHARGE; PHASE-IN.
new text end

new text begin (a) For a road usage charge under Minnesota Statutes, section 168.0132, imposed in a
billing period that starts on or after July 1, 2025, and before July 1, 2026:
new text end

new text begin (1) the amount calculated under subdivision 2, paragraph (b), clause (2), and subdivision
2, paragraph (c), clause (2), is multiplied by 0.6; and
new text end

new text begin (2) the adjustment rate is multiplied by 0.6.
new text end

new text begin (b) For a road usage charge under Minnesota Statutes, section 168.0132, imposed in a
billing period that starts on or after July 1, 2026, and before July 1, 2027:
new text end

new text begin (1) the amount calculated under subdivision 2, paragraph (b), clause (2), and subdivision
2, paragraph (c), clause (2), is multiplied by 0.8; and
new text end

new text begin (2) the adjustment rate is multiplied by 0.8.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2025, and applies to a registration
period starting on or after that date.
new text end

Sec. 6. new text begin APPROPRIATION; ROAD USAGE CHARGE.
new text end

new text begin $....... in fiscal year 2025 is appropriated from the driver and vehicle services operating
account in the special revenue fund to the commissioner of public safety for administrative
costs to implement the road usage charge under Minnesota Statutes, section 168.0132. This
is a onetime appropriation and is available until June 30, 2027.
new text end