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HF 861

Conference Committee Report - 90th Legislature (2017 - 2018) Posted on 05/09/2017 11:08pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 861
1.2A bill for an act
1.3relating to transportation finance; establishing the budget for transportation
1.4activities; modifying various provisions governing transportation finance and
1.5policy; establishing a fund; requiring reports; appropriating money; authorizing
1.6the sale and issuance of state bonds;amending Minnesota Statutes 2016, sections
1.716A.88, subdivision 2; 53C.01, subdivision 2; 115A.908, subdivision 2; 117.189;
1.8160.18, by adding a subdivision; 161.081, subdivision 3; 161.088, subdivisions 4,
1.95, 7; 161.115, subdivision 190; 161.14, by adding subdivisions; 161.321,
1.10subdivision 6; 161.38, by adding a subdivision; 161.44, subdivisions 5, 6a, by
1.11adding a subdivision; 162.145, subdivision 2; 168.021, subdivisions 1, 2, 2a;
1.12168.27, by adding a subdivision; 168.33, subdivision 2; 168A.09, subdivision 1;
1.13169.011, subdivision 34; 169.18, subdivisions 5, 7; 169.345, subdivisions 1, 3;
1.14169.442, subdivision 5; 169.443, subdivision 2; 169.444, subdivision 2; 169.449,
1.15subdivision 1; 169.4501, subdivisions 1, 2; 169.4503, subdivisions 4, 7, 14, 23,
1.1630; 169.64, subdivision 8; 169.865, subdivision 3; 171.02, subdivision 2b; 171.06,
1.17subdivision 2a; 171.061, subdivision 3; 171.12, subdivision 6; 173.02, subdivisions
1.1818, 23, by adding subdivisions; 173.06, subdivision 1; 173.07, subdivision 1;
1.19173.08, by adding subdivisions; 173.13, subdivision 11; 173.16, by adding
1.20subdivisions; 174.03, subdivisions 1a, 1c, by adding a subdivision; 174.50,
1.21subdivisions 5, 6b, 6c, 7; 174.56, subdivisions 1, 2, by adding a subdivision; 174.93;
1.22219.166; 219.20, subdivision 1; 221.031, by adding a subdivision; 222.49; 222.50,
1.23subdivision 6, by adding a subdivision; 299D.03, subdivision 6; 473.13, subdivision
1.241; 473.146, subdivision 3; 473.388, subdivision 4; 473.39, by adding a subdivision;
1.25473.3994, by adding subdivisions; 473.4051, subdivision 3; Laws 2015, chapter
1.2675, article 1, section 3, subdivision 3; proposing coding for new law in Minnesota
1.27Statutes, chapters 168; 169; 173; 174; 219; 398A; 471; 473; repealing Minnesota
1.28Statutes 2016, sections 161.115, subdivision 32; 169.4502, subdivision 5; 473.4051,
1.29subdivision 2; Minnesota Rules, parts 8810.0800, subpart 3; 8810.1300, subpart
1.304.
1.31May 9, 2017
1.32The Honorable Kurt L. Daudt
1.33Speaker of the House of Representatives
1.34The Honorable Michelle L. Fischbach
1.35President of the Senate
1.36We, the undersigned conferees for H. F. No. 861 report that we have agreed upon the
1.37items in dispute and recommend as follows:
2.1That the Senate recede from its amendment and that H. F. No. 861 be further amended
2.2as follows:
2.3Delete everything after the enacting clause and insert:

2.4"
ARTICLE 1
2.5TRANSPORTATION APPROPRIATIONS

2.6
Section 1. TRANSPORTATION APPROPRIATIONS
2.7The sums shown in the columns marked "Appropriations" are appropriated to the agencies
2.8and for the purposes specified in this article. The appropriations are from the trunk highway
2.9fund, or another named fund, and are available for the fiscal years indicated for each purpose.
2.10Amounts for "Total Appropriation" and sums shown in the corresponding columns marked
2.11"Appropriations by Fund" are summary only and do not have legal effect. Unless specified
2.12otherwise, the amounts in the second year under "Appropriations by Fund" show the base
2.13within the meaning of Minnesota Statutes, section 16A.11, subdivision 3, by fund. The
2.14figures "2018" and "2019" used in this article mean that the appropriations listed under them
2.15are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The
2.16first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" is
2.17fiscal years 2018 and 2019.
2.18
APPROPRIATIONS
2.19
Available for the Year
2.20
Ending June 30
2.21
2018
2019

2.22
2.23
Sec. 2. DEPARTMENT OF
TRANSPORTATION
2.24
Subdivision 1.Total Appropriation
$
2,990,529,000
$
2,912,541,000
2.25
Appropriations by Fund
2.26
2018
2019
2.27
General
23,458,000
38,358,000
2.28
Airports
34,812,000
21,909,000
2.29
C.S.A.H.
775,251,000
802,819,000
2.30
M.S.A.S.
194,122,000
201,020,000
2.31
Special Revenue
2,500,000
0
2.32
Trunk Highway
1,960,386,000
1,848,435,000
2.33The appropriations in this section are to the
2.34commissioner of transportation. The amounts
3.1that may be spent for each purpose are
3.2specified in the following subdivisions.
3.3
Subd. 2.Multimodal Systems
3.4(a) Aeronautics
3.5
(1) Airport Development and Assistance
26,001,000
16,598,000
3.6This appropriation is from the state airports
3.7fund and must be spent according to
3.8Minnesota Statutes, section 360.305,
3.9subdivision 4.
3.10Notwithstanding Minnesota Statutes, section
3.1116A.28, subdivision 6, this appropriation is
3.12available for five years after the year of the
3.13appropriation. If the appropriation for either
3.14year is insufficient, the appropriation for the
3.15other year is available for it.
3.16$6,619,000 in the first year is for a grant to
3.17the Duluth Airport Authority to provide the
3.18federal match to design and construct runway
3.19infrastructure at the Duluth International
3.20Airport or the Sky Harbor Airport in
3.21accordance with Minnesota Statutes, section
3.22360.017. For the purposes of this
3.23appropriation, the commissioner may waive
3.24the requirements of Minnesota Statutes,
3.25section 360.305, subdivision 4, paragraph (b).
3.26This is a onetime appropriation.
3.27$2,334,000 in the first year is for a grant to
3.28the city of Rochester to design, rehabilitate,
3.29demolish, and expand portions of the existing
3.30passenger terminal building at the Rochester
3.31International Airport, provided that this
3.32amount also includes money to remodel,
3.33construct, furnish, and equip the existing
3.34passenger terminal building and associated
4.1appurtenances to meet the United States
4.2Customs and Border Protection and
4.3Transportation Security Administration
4.4standards for safety, security, and processing
4.5time to accommodate domestic and
4.6international flights. The capital improvements
4.7paid for with this appropriation may be used
4.8as the local contribution required by
4.9Minnesota Statutes, section 360.305,
4.10subdivision 4. This appropriation may be used
4.11to reimburse the city for costs incurred after
4.12May 1, 2016. This appropriation is not
4.13available until the commissioner of
4.14management and budget has determined that
4.15at least an equal amount has been committed
4.16to the project from nonstate sources. Work
4.17that may be completed with this appropriation
4.18includes but is not limited to (i) site
4.19preparation, including utilities, site civil work,
4.20testing, and construction administration
4.21services, (ii) the relocation, modification, and
4.22addition of airline ticket counters, baggage
4.23claim devices, public spaces, offices,
4.24restrooms, support space, break rooms,
4.25lockers, equipment storage, communications,
4.26hallways, building signage, medical visitor
4.27rooms, special needs accommodations, hold
4.28rooms, secure storage, equipment maintenance
4.29area, and building engineering and technology
4.30systems, (iii) improvements needed outside
4.31the terminal to remove, restore, and tie into
4.32adjacent utilities, sidewalks, driveways,
4.33parking lots, and aircraft aprons, and (iv) the
4.34construction of covered exterior equipment
4.35storage. This is a onetime appropriation.
5.1Notwithstanding Minnesota Statutes, section
5.2360.017, $250,000 in the first year is for a
5.3grant to the city of St. Cloud for an air
5.4transport optimization planning study for the
5.5St. Cloud Regional Airport. The study must
5.6be comprehensive and market-based, using
5.7economic development and air service
5.8expertise to research, analyze, and develop
5.9models and strategies that maximize the return
5.10on investments made to enhance the use and
5.11impact of the St. Cloud Regional Airport. By
5.12January 5, 2018, the city of St. Cloud shall
5.13submit a report to the governor and the
5.14members and staff of the legislative
5.15committees with jurisdiction over capital
5.16investment, transportation, and economic
5.17development with recommendations based on
5.18the findings of the study. This is a onetime
5.19appropriation.
5.20If the commissioner of transportation
5.21determines that a balance remains in the state
5.22airports fund following the appropriations
5.23made in this article and that the appropriations
5.24made are insufficient for advancing airport
5.25development and assistance projects, an
5.26amount necessary to advance the projects, not
5.27to exceed the balance in the state airports fund,
5.28is appropriated in each year to the
5.29commissioner and must be spent according to
5.30Minnesota Statutes, section 360.305,
5.31subdivision 4. Within two weeks of a
5.32determination under this contingent
5.33appropriation, the commissioner of
5.34transportation must notify the commissioner
5.35of management and budget and the chairs,
5.36ranking minority members, and staff of the
6.1legislative committees with jurisdiction over
6.2transportation finance concerning the funds
6.3appropriated. Funds appropriated under this
6.4contingent appropriation do not adjust the base
6.5for fiscal years 2020 and 2021.
6.6The base is $15,298,000 in each of fiscal years
6.72020 and 2021.
6.8
(2) Aviation Support and Services
6,710,000
6,854,000
6.9
Appropriations by Fund
6.10
2018
2019
6.11
Airports
5,231,000
5,231,000
6.12
Trunk Highway
1,479,000
1,623,000
6.13
(3) Civil Air Patrol
3,580,000
80,000
6.14This appropriation is from the state airports
6.15fund for the Civil Air Patrol.
6.16$3,500,000 in the first year is for a grant to
6.17renovate a portion of and construct an addition
6.18to the training and maintenance facility located
6.19at the South St. Paul airport, and to furnish
6.20and equip the facility, including
6.21communications equipment. Notwithstanding
6.22Minnesota Statutes, section 16A.28,
6.23subdivision 6, this appropriation is available
6.24for five years after the year of the
6.25appropriation. This is a onetime appropriation.
6.26
(b) Transit
1,241,000
18,268,000
6.27
Appropriations by Fund
6.28
2018
2019
6.29
General
395,000
17,395,000
6.30
Trunk Highway
846,000
873,000
6.31$150,000 in each year is from the general fund
6.32for grants to transportation management
6.33organizations that provide services exclusively
6.34or primarily in the city located along the
7.1marked Interstate Highway 494 corridor
7.2having the highest population as of the
7.3effective date of this section. The
7.4commissioner must not retain any portion of
7.5the funds appropriated under this section.
7.6From the appropriation in each fiscal year, the
7.7commissioner must make grant payments in
7.8full by July 31. Permissible uses of funds
7.9under this grant include administrative
7.10expenses and programming and service
7.11expansion, including but not limited to
7.12staffing, communications, outreach and
7.13education program development, and
7.14operations management. This is a onetime
7.15appropriation.
7.16The base from the general fund is $17,245,000
7.17in each year for fiscal years 2020 and 2021.
7.18
(c) Safe Routes to School
1,500,000
500,000
7.19This appropriation is from the general fund
7.20for the safe routes to school program under
7.21Minnesota Statutes, section 174.40.
7.22(d) Freight
7.23
(1) Freight and Commercial Vehicle Operations
9,356,000
5,928,000
7.24
Appropriations by Fund
7.25
2018
2019
7.26
General
1,506,000
406,000
7.27
Special Revenue
2,500,000
0
7.28
Trunk Highway
5,350,000
5,522,000
7.29$1,100,000 in the first year is from the general
7.30fund for port development assistance grants
7.31under Minnesota Statutes, chapter 457A, to
7.32the city of Red Wing and to the Port Authority
7.33of Winona. Any improvements made with the
7.34proceeds of the grants must be publicly owned.
8.1This is a onetime appropriation and is
8.2available in the second year.
8.3$150,000 in each year is from the general fund
8.4for additional rail safety and rail service
8.5activities.
8.6$1,000,000 in the first year is from the rail
8.7service improvement account in the special
8.8revenue fund for a grant to the city of Grand
8.9Rapids to fund rail planning studies, design,
8.10and preliminary engineering relating to the
8.11construction of a freight rail line located in the
8.12counties of Itasca, St. Louis, and Lake to serve
8.13local producers and shippers. The city of
8.14Grand Rapids shall collaborate with the Itasca
8.15Economic Development Corporation and the
8.16Itasca County Regional Railroad Authority in
8.17the activities funded with the proceeds of this
8.18grant. This is a onetime appropriation and is
8.19available until June 30, 2019.
8.20$1,500,000 in the first year is from the rail
8.21service improvement account in the special
8.22revenue fund for a grant to a railroad company
8.23classified by federal law as a Class III railroad
8.24or Class III carrier, to repair or rehabilitate a
8.25line of railroad track that serves at least one
8.26industrial park located in the metropolitan
8.27area, as defined in Minnesota Statutes, section
8.28473.121, subdivision 2. This is a onetime
8.29appropriation and is available until June 30,
8.302019.
8.31
(2) Hazardous Materials Rail Safety
3,000,000
3,000,000
8.32This appropriation is from the general fund
8.33for the hazardous materials rail safety program
8.34and grants under Minnesota Statutes, section
8.35219.016. This is a onetime appropriation.
9.1
Subd. 3.State Roads
9.2
(a) Operations and Maintenance
344,325,000
332,313,000
9.3The base is $324,256,000 in fiscal year 2020
9.4and $322,674,000 in fiscal year 2021.
9.5
(b) Program Planning and Delivery
9.6
(1) Planning and Research
34,588,000
32,643,000
9.7If a balance remains of this appropriation, the
9.8commissioner may transfer up to that amount
9.9for program delivery under clause (2).
9.10Up to $160,000 in the first year is for the
9.11highway construction costs and cost inflation
9.12study under article 3, section 137. This is a
9.13onetime appropriation.
9.14$130,000 in each year is available for
9.15administrative costs of the targeted group
9.16business program.
9.17$266,000 in each year is available for grants
9.18to metropolitan planning organizations outside
9.19the seven-county metropolitan area.
9.20$900,000 in each year is available for grants
9.21for transportation studies outside the
9.22metropolitan area to identify critical concerns,
9.23problems, and issues. These grants are
9.24available:
9.25(1) to regional development commissions;
9.26(2) in regions where no regional development
9.27commission is functioning, to joint powers
9.28boards established under agreement of two or
9.29more political subdivisions in the region to
9.30exercise the planning functions of a regional
9.31development commission; and
9.32(3) in regions where no regional development
9.33commission or joint powers board is
10.1functioning, to the Department of
10.2Transportation district office for that region.
10.3The base is $31,972,000 in fiscal year 2020
10.4and $31,840,000 in fiscal year 2021.
10.5
(2) Program Delivery
231,855,000
224,764,000
10.6This appropriation includes use of consultants
10.7to support development and management of
10.8projects.
10.9Up to $140,000 in the first year is for
10.10development, implementation, and reporting
10.11on project selection policy under article 3,
10.12section 128. This is a onetime appropriation.
10.13$1,000,000 in each year is available for
10.14management of contaminated and regulated
10.15material on property owned by the Department
10.16of Transportation, including mitigation of
10.17property conveyances, facility acquisition or
10.18expansion, chemical release at maintenance
10.19facilities, and spills on the trunk highway
10.20system where there is no known responsible
10.21party. If the appropriation for either year is
10.22insufficient, the appropriation for the other
10.23year is available for it.
10.24The base is $219,393,000 in fiscal year 2020
10.25and $218,338,000 in fiscal year 2021.
10.26
(c) State Road Construction
1,012,315,000
891,055,000
10.27This appropriation is for the actual
10.28construction, reconstruction, and improvement
10.29of trunk highways, including design-build
10.30contracts, internal department costs associated
10.31with delivering the construction program,
10.32consultant usage to support these activities,
10.33and the cost of actual payments to landowners
10.34for lands acquired for highway rights-of-way,
11.1payment to lessees, interest subsidies, and
11.2relocation expenses.
11.3This appropriation includes federal highway
11.4aid.
11.5The commissioner may expend up to one-half
11.6of one percent of the federal appropriations
11.7under this paragraph as grants to opportunity
11.8industrialization centers and other nonprofit
11.9job training centers for job training programs
11.10related to highway construction.
11.11The commissioner may transfer up to
11.12$15,000,000 each year to the transportation
11.13revolving loan fund.
11.14The commissioner may receive money
11.15covering other shares of the cost of partnership
11.16projects. These receipts are appropriated to
11.17the commissioner for these projects.
11.18The base is $871,586,000 in fiscal year 2020
11.19and $867,763,000 in fiscal year 2021.
11.20
(d) Corridors of Commerce
25,000,000
25,000,000
11.21This appropriation is for the corridors of
11.22commerce program under Minnesota Statutes,
11.23section 161.088.
11.24The commissioner may use up to 17 percent
11.25of the amount each year for program delivery.
11.26
(e) Highway Debt Service
225,536,000
253,625,000
11.27$216,036,000 in fiscal year 2018 and
11.28$244,125,000 in fiscal year 2019 are for
11.29transfer to the state bond fund. If this
11.30appropriation is insufficient to make all
11.31transfers required in the year for which it is
11.32made, the commissioner of management and
11.33budget must transfer the deficiency amount
12.1under the statutory open appropriation and
12.2notify the chairs, ranking minority members,
12.3and staff of the legislative committees with
12.4jurisdiction over transportation finance and
12.5the chairs of the senate Finance Committee
12.6and the house of representatives Ways and
12.7Means Committee of the amount of the
12.8deficiency. Any excess appropriation cancels
12.9to the trunk highway fund.
12.10
(f) Statewide Radio Communications
5,648,000
5,829,000
12.11
Appropriations by Fund
12.12
2018
2019
12.13
General
3,000
3,000
12.14
Trunk Highway
5,645,000
5,826,000
12.15$3,000 in each year is from the general fund
12.16to equip and operate the Roosevelt signal
12.17tower for Lake of the Woods weather
12.18broadcasting.
12.19
Subd. 4.Local Roads
12.20
(a) County State-Aid Roads
782,251,000
809,819,000
12.21
Appropriations by Fund
12.22
2018
2019
12.23
C.S.A.H.
775,251,000
802,819,000
12.24
General
7,000,000
7,000,000
12.25The appropriation from the county state-aid
12.26highway fund is under Minnesota Statutes,
12.27sections 161.081 and 297A.815, subdivision
12.283, and chapter 162, and is available until June
12.2930, 2027.
12.30$5,000,000 in each year is from the general
12.31fund for distribution to counties in the
12.32metropolitan area, as defined in Minnesota
12.33Statutes, section 473.121, subdivision 4, for
12.34construction, reconstruction, and maintenance
13.1of county highways, including county state-aid
13.2highways. The distribution must be calculated
13.3so that each county receives from this amount
13.4the percentage that its population, as defined
13.5in Minnesota Statutes, section 477A.011,
13.6subdivision 3, estimated or established by July
13.715 of the year prior to the current calendar
13.8year, bears to the total population of the
13.9counties receiving funds under this rider. For
13.10purposes of this rider, the population of each
13.11county containing a statutory or home rule
13.12charter city of the first class is calculated at
13.130.25 multiplied by that county's population as
13.14otherwise determined. All projects must be
13.15located outside cities of the first class. This is
13.16a onetime appropriation.
13.17$2,000,000 in each year is from the general
13.18fund for town roads, to be distributed in the
13.19manner provided under Minnesota Statutes,
13.20section 162.081. This is a onetime
13.21appropriation.
13.22If the commissioner of transportation
13.23determines that a balance remains in the
13.24county state-aid highway fund following the
13.25appropriations and transfers made in this
13.26paragraph, and that the appropriations made
13.27are insufficient for advancing county state-aid
13.28highway projects, an amount necessary to
13.29advance the projects, not to exceed the balance
13.30in the county state-aid highway fund, is
13.31appropriated in each year to the commissioner.
13.32Within two weeks of a determination under
13.33this contingent appropriation, the
13.34commissioner of transportation shall notify
13.35the commissioner of management and budget
14.1and the chairs, ranking minority members, and
14.2staff of the legislative committees with
14.3jurisdiction over transportation finance
14.4concerning funds appropriated. The
14.5commissioner shall identify in the next budget
14.6submission to the legislature under Minnesota
14.7Statutes, section 16A.11, any amount that is
14.8appropriated under this paragraph.
14.9
(b) Municipal State-Aid Roads
194,122,000
201,020,000
14.10This appropriation is from the municipal
14.11state-aid street fund under Minnesota Statutes,
14.12chapter 162, and is available until June 30,
14.132027.
14.14If the commissioner of transportation
14.15determines that a balance remains in the
14.16municipal state-aid street fund following the
14.17appropriations and transfers made in this
14.18paragraph, and that the appropriations made
14.19are insufficient for advancing municipal
14.20state-aid street projects, an amount necessary
14.21to advance the projects, not to exceed the
14.22balance in the municipal state-aid street fund,
14.23is appropriated in each year to the
14.24commissioner. Within two weeks of a
14.25determination under this contingent
14.26appropriation, the commissioner of
14.27transportation shall notify the commissioner
14.28of management and budget and the chairs,
14.29ranking minority members, and staff of the
14.30legislative committees with jurisdiction over
14.31transportation finance concerning funds
14.32appropriated. The commissioner shall identify
14.33in the next budget submission to the legislature
14.34under Minnesota Statutes, section 16A.11, any
15.1amount that is appropriated under this
15.2paragraph.
15.3
(c) Small Cities Assistance
10,000,000
10,000,000
15.4This appropriation is from the general fund
15.5for the small cities assistance program under
15.6Minnesota Statutes, section 162.145. This is
15.7a onetime appropriation.
15.8
Subd. 5.Agency Management
15.9
(a) Agency Services
44,316,000
45,206,000
15.10
(b) Buildings
28,585,000
29,439,000
15.11
Appropriations by Fund
15.12
2018
2019
15.13
General
54,000
54,000
15.14
Trunk Highway
28,531,000
29,385,000
15.15Any money appropriated to the commissioner
15.16of transportation for building construction for
15.17any fiscal year before the first year is available
15.18to the commissioner during the biennium to
15.19the extent that the commissioner spends the
15.20money on the building construction projects
15.21for which the money was originally
15.22encumbered during the fiscal year for which
15.23it was appropriated. If the appropriation for
15.24either year is insufficient, the appropriation
15.25for the other year is available for it.
15.26
(c) Tort Claims
600,000
600,000
15.27If the appropriation for either year is
15.28insufficient, the appropriation for the other
15.29year is available for it.
15.30
Subd. 6.Transfers
15.31(a) With the approval of the commissioner of
15.32management and budget, the commissioner
15.33of transportation may transfer unencumbered
15.34balances among the appropriations from the
16.1trunk highway fund and the state airports fund
16.2made in this section. Transfers under this
16.3paragraph must not be made:
16.4(1) between funds;
16.5(2) from the appropriations for state road
16.6construction or debt service; or
16.7(3) from the appropriations for operations and
16.8maintenance or program delivery, except for
16.9a transfer to state road construction or debt
16.10service.
16.11(b) The commissioner of transportation must
16.12immediately report transfers under paragraph
16.13(a) to the chairs, ranking minority members,
16.14and staff of the legislative committees with
16.15jurisdiction over transportation finance. The
16.16authority for the commissioner of
16.17transportation to make transfers under
16.18Minnesota Statutes, section 16A.285, is
16.19superseded by the authority and requirements
16.20under this paragraph.
16.21(c) The commissioner of transportation must
16.22transfer from the flexible highway account in
16.23the county state-aid highway fund the entire
16.24amount in each year to the county turnback
16.25account in the county state-aid highway fund.
16.26The funds transferred are for highway
16.27turnback purposes under Minnesota Statutes,
16.28section 161.081, subdivision 3.
16.29
16.30
Subd. 7.Previous State Road Construction
Appropriations
16.31Any money appropriated to the commissioner
16.32of transportation for state road construction
16.33for any fiscal year before the first year is
16.34available to the commissioner during the
17.1biennium to the extent that the commissioner
17.2spends the money on the state road
17.3construction project for which the money was
17.4originally encumbered during the fiscal year
17.5for which it was appropriated.
17.6
Subd. 8.Contingent Appropriations
17.7The commissioner of transportation, with the
17.8approval of the governor and the written
17.9approval of at least five members of a group
17.10consisting of the members of the Legislative
17.11Advisory Commission under Minnesota
17.12Statutes, section 3.30, and the ranking minority
17.13members of the legislative committees with
17.14jurisdiction over transportation finance, may
17.15transfer all or part of the unappropriated
17.16balance in the trunk highway fund to an
17.17appropriation:
17.18(1) for trunk highway design, construction, or
17.19inspection that takes advantage of an
17.20unanticipated receipt of income to the trunk
17.21highway fund or federal advanced construction
17.22funding;
17.23(2) for emergency trunk highway maintenance;
17.24or
17.25(3) to pay tort or environmental claims.
17.26Nothing in this subdivision authorizes the
17.27commissioner to increase the use of federal
17.28advanced construction funding beyond
17.29amounts specifically authorized. Any transfer
17.30as a result of the use of federal advanced
17.31construction funding must include an analysis
17.32of the effects on the long-term trunk highway
17.33fund balance. The amount transferred is
18.1appropriated for the purpose of the account to
18.2which it is transferred.
18.3
18.4
Subd. 9.Requirements for Certain Legal
Activities
18.5The commissioner of transportation is
18.6prohibited from permitting legal counsel
18.7employed by the Department of Transportation
18.8to perform activities related to response to a
18.9data practices request of the department under
18.10Minnesota Statutes, chapter 13, and the
18.11commissioner must enter into an agreement
18.12with the attorney general for exclusive services
18.13regarding these activities.

18.14
Sec. 3. METROPOLITAN COUNCIL
$
116,046,000
$
114,820,000
18.15This appropriation is from the general fund
18.16for transit system operations under Minnesota
18.17Statutes, sections 473.371 to 473.449.
18.18$1,000,000 in the first year is for financial
18.19assistance to replacement service providers
18.20under Minnesota Statutes, section 473.388,
18.21for the purposes of the suburb-to-suburb transit
18.22demonstration project authorized under Laws
18.232015, chapter 75, article 1, section 4. The
18.24council must not retain any portion of the
18.25funds under this appropriation. This is a
18.26onetime appropriation.
18.27Up to $226,000 in the first year is for the
18.28comprehensive transit finance report under
18.29Minnesota Statutes, section 174.93. This is a
18.30onetime appropriation and is available in the
18.31second year.
18.32The base is $89,820,000 in fiscal year 2020
18.33and $89,820,000 in fiscal year 2021.

19.1
Sec. 4. DEPARTMENT OF PUBLIC SAFETY
19.2
Subdivision 1.Total Appropriation
$
199,838,000
$
199,407,000
19.3
Appropriations by Fund
19.4
2018
2019
19.5
General
19,971,000
14,381,000
19.6
Special Revenue
63,945,000
65,087,000
19.7
H.U.T.D.
10,474,000
10,486,000
19.8
Trunk Highway
105,448,000
109,453,000
19.9The appropriations in this section are to the
19.10commissioner of public safety. The amounts
19.11that may be spent for each purpose are
19.12specified in the following subdivisions.
19.13
Subd. 2.Administration and Related Services
19.14
(a) Office of Communications
553,000
573,000
19.15
Appropriations by Fund
19.16
2018
2019
19.17
General
127,000
130,000
19.18
Trunk Highway
426,000
443,000
19.19
(b) Public Safety Support
6,372,000
6,569,000
19.20
Appropriations by Fund
19.21
2018
2019
19.22
General
1,225,000
1,235,000
19.23
H.U.T.D.
1,366,000
1,366,000
19.24
Trunk Highway
3,781,000
3,968,000
19.25
(c) Public Safety Officer Survivor Benefits
640,000
640,000
19.26This appropriation is from the general fund
19.27for payment of public safety officer survivor
19.28benefits under Minnesota Statutes, section
19.29299A.44 .
19.30If the appropriation for either year is
19.31insufficient, the appropriation for the other
19.32year is available for it.
19.33
(d) Public Safety Officer Reimbursements
1,367,000
1,367,000
20.1This appropriation is from the general fund to
20.2be deposited in the public safety officer's
20.3benefit account. This money is available for
20.4reimbursements under Minnesota Statutes,
20.5section 299A.465.
20.6
(e) Soft Body Armor Reimbursements
700,000
700,000
20.7
Appropriations by Fund
20.8
2018
2019
20.9
General
600,000
600,000
20.10
Trunk Highway
100,000
100,000
20.11This appropriation is for soft body armor
20.12reimbursements under Minnesota Statutes,
20.13section 299A.38.
20.14
(f) Technology and Support Service
3,777,000
3,814,000
20.15
Appropriations by Fund
20.16
2018
2019
20.17
General
1,353,000
1,365,000
20.18
H.U.T.D.
19,000
19,000
20.19
Trunk Highway
2,405,000
2,430,000
20.20
Subd. 3.State Patrol
20.21
(a) Patrolling Highways
95,689,000
93,323,000
20.22
Appropriations by Fund
20.23
2018
2019
20.24
General
5,787,000
37,000
20.25
H.U.T.D.
92,000
92,000
20.26
Trunk Highway
89,810,000
93,194,000
20.27$5,750,000 from the general fund in the first
20.28year is to purchase a helicopter for the State
20.29Patrol. This is a onetime appropriation.
20.30From this appropriation, State Patrol trainee
20.31salaries as provided under Minnesota Statutes,
20.32section 299D.03, subdivision 6, must be
20.33provided as follows: (1) for trainees in the Law
20.34Enforcement Training Opportunity program,
21.180 percent of the basic salary for patrol
21.2officers; and (2) for all other trainees, 100
21.3percent of the basic salary.
21.4
(b) Commercial Vehicle Enforcement
8,455,000
8,826,000
21.5
(c) Capitol Security
8,402,000
8,537,000
21.6This appropriation is from the general fund.
21.7The commissioner must not:
21.8(1) spend any money from the trunk highway
21.9fund for capitol security; or
21.10(2) permanently transfer any state trooper from
21.11the patrolling highways activity to capitol
21.12security.
21.13The commissioner must not transfer any
21.14money appropriated to the commissioner under
21.15this section:
21.16(1) to capitol security; or
21.17(2) from capitol security.
21.18
(d) Vehicle Crimes Unit
761,000
773,000
21.19This appropriation is from the highway user
21.20tax distribution fund.
21.21This appropriation is to investigate:
21.22(1) registration tax and motor vehicle sales tax
21.23liabilities from individuals and businesses that
21.24currently do not pay all taxes owed; and
21.25(2) illegal or improper activity related to the
21.26sale, transfer, titling, and registration of motor
21.27vehicles.
21.28
Subd. 4.Driver and Vehicle Services
21.29
(a) Vehicle Services
30,745,000
31,159,000
21.30
Appropriations by Fund
21.31
2018
2019
22.1
Special Revenue
22,509,000
22,923,000
22.2
H.U.T.D.
8,236,000
8,236,000
22.3The special revenue fund appropriation is from
22.4the vehicle services operating account.
22.5
(b) Driver Services
32,014,000
32,725,000
22.6This appropriation is from the driver services
22.7operating account in the special revenue fund.
22.8$156,000 in each year is to maintain the
22.9automated knowledge test system.
22.10
22.11
(c) Minnesota Licensing and Registration System
(MNLARS)
8,000,000
8,000,000
22.12This appropriation is for operations and
22.13maintenance of the driver and vehicle
22.14information system known as the Minnesota
22.15Licensing and Registration System.
22.16$1,000,000 in the first year and $5,265,000 in
22.17the second year are from the driver services
22.18operating account in the special revenue fund.
22.19This is a onetime appropriation.
22.20$7,000,000 in the first year and $2,735,000 in
22.21the second year are from the vehicle services
22.22operating account in the special revenue fund.
22.23This is a onetime appropriation.
22.24
Subd. 5.Traffic Safety
941,000
962,000
22.25
Appropriations by Fund
22.26
2018
2019
22.27
General
470,000
470,000
22.28
Trunk Highway
471,000
492,000
22.29The appropriation from the general fund in
22.30each year is for maintenance of the crash
22.31record system.
22.32
Subd. 6.Pipeline Safety
1,422,000
1,439,000
23.1This appropriation is from the pipeline safety
23.2account in the special revenue fund.

23.3    Sec. 5. MINNESOTA RAIL SERVICE IMPROVEMENT ACCOUNT TRANSFER.
23.4    $3,500,000 in fiscal year 2018 is transferred from the general fund to the rail service
23.5improvement account in the special revenue fund. This is a onetime transfer.

23.6    Sec. 6. APPROPRIATION CANCELLATION.
23.7$1,100,000 of the appropriation for port development assistance under Laws 2015,
23.8chapter 75, article 1, section 3, subdivision 2, paragraph (e), is canceled to the general fund
23.9on June 30, 2017.
23.10EFFECTIVE DATE.This section is effective the day following final enactment.

23.11    Sec. 7. APPROPRIATIONS BUDGET.
23.12(a) In the budget submission to the legislature under Minnesota Statutes, section 16A.11,
23.13for fiscal years 2020 and 2021, the commissioner of transportation, and the commissioner
23.14of public safety with respect to the transportation portion of the public safety budget, must
23.15present budget narratives and proposed appropriations for each appropriation established
23.16in sections 2 and 4.
23.17(b) In the budget submission to the legislature under Minnesota Statutes, section 16A.11,
23.18for fiscal years 2020 and 2021, the metropolitan council must present budget narratives and
23.19the proposed appropriations, if any, for each of the following categories: metro mobility,
23.20contracted bus service, regular route bus service, light rail transit, commuter rail,
23.21transportation planning, and allocation to the regional administration.

23.22
ARTICLE 2
23.23TRANSPORTATION BONDS

23.24    Section 1. BOND APPROPRIATIONS.
23.25The sums shown in the column under "Appropriations" are appropriated from the bond
23.26proceeds account in the trunk highway fund to the state agencies or officials indicated, to
23.27be spent for public purposes. Appropriations of bond proceeds must be spent as authorized
23.28by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified, money
23.29appropriated in this article for a capital program or project may be used to pay state agency
24.1staff costs that are attributed directly to the capital program or project in accordance with
24.2accounting policies adopted by the commissioner of management and budget.
24.3
SUMMARY
24.4
Department of Transportation
$
600,000,000
24.5
Department of Management and Budget
600,000
24.6
TOTAL
$
600,600,000
24.7
APPROPRIATIONS

24.8
24.9
Sec. 2. DEPARTMENT OF
TRANSPORTATION
24.10
Subdivision 1.Corridors of Commerce
$
300,000,000
24.11This appropriation is to the commissioner of
24.12transportation for the corridors of commerce
24.13program under Minnesota Statutes, section
24.14161.088.
24.15The commissioner may use up to 17 percent
24.16of the amount each year for program delivery.
24.17
Subd. 2.State Road Construction
$
300,000,000
24.18This appropriation is to the commissioner of
24.19transportation for construction, reconstruction,
24.20and improvement of trunk highways, including
24.21design-build contracts and use of consultants
24.22to support these activities. This includes the
24.23cost of actual payment to landowners for lands
24.24acquired for highway rights-of-way, payment
24.25to lessees, interest subsidies, and relocation
24.26expenses.
24.27This appropriation is available in fiscal year
24.282019.
24.29
Subd. 3.Cancellations
24.30The appropriations in this section cancel as
24.31specified under Minnesota Statutes, section
24.3216A.642, except that the commissioner of
24.33management and budget shall count the start
25.1of authorization for issuance of state bonds as
25.2the first day of the fiscal year during which
25.3the bonds are available to be issued as
25.4specified under subdivision 1 or 2, and not as
25.5the date of enactment of this section.

25.6
Sec. 3. BOND SALE EXPENSES
$
600,000
25.7This appropriation is to the commissioner of
25.8management and budget for bond sale
25.9expenses under Minnesota Statutes, sections
25.1016A.641, subdivision 8, and 167.50,
25.11subdivision 4, and is available in the amount
25.12of $300,000 in each of fiscal years 2018 and
25.132019.

25.14
Sec. 4. BOND SALE AUTHORIZATION.
25.15To provide the money appropriated in this article from the bond proceeds account in the
25.16trunk highway fund, the commissioner of management and budget shall sell and issue bonds
25.17of the state in an amount up to $600,600,000 in the manner, upon the terms, and with the
25.18effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
25.19Constitution, article XIV, section 11, at the times and in the amounts requested by the
25.20commissioner of transportation. The proceeds of the bonds, except accrued interest and any
25.21premium received from the sale of the bonds, must be deposited in the bond proceeds account
25.22in the trunk highway fund.

25.23    Sec. 5. EFFECTIVE DATE.
25.24This article is effective July 1, 2017.

25.25
ARTICLE 3
25.26TRANSPORTATION POLICY AND FINANCE

25.27    Section 1. Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:
25.28    Subd. 3. Group II salary limits. The salary for a position listed in this subdivision shall
25.29not exceed 120 percent of the salary of the governor. This limit must be adjusted annually
25.30on January 1. The new limit must equal the limit for the prior year increased by the percentage
25.31increase, if any, in the Consumer Price Index for all urban consumers from October of the
26.1second prior year to October of the immediately prior year. The commissioner of management
26.2and budget must publish the limit on the department's Web site. This subdivision applies
26.3to the following positions:
26.4    Executive director of Gambling Control Board;
26.5    Commissioner, Iron Range Resources and Rehabilitation Board;
26.6    Commissioner, Bureau of Mediation Services;
26.7    Ombudsman for Mental Health and Developmental Disabilities;
26.8    Chair, Metropolitan Council;
26.9    School trust lands director;
26.10    Executive director of pari-mutuel racing; and
26.11    Commissioner, Public Utilities Commission.
26.12EFFECTIVE DATE.This section is effective January 1, 2019, and applies in the
26.13counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

26.14    Sec. 2. Minnesota Statutes 2016, section 53C.01, subdivision 2, is amended to read:
26.15    Subd. 2. Cash sale price. "Cash sale price" means the price at which the seller would
26.16in good faith sell to the buyer, and the buyer would in good faith buy from the seller, the
26.17motor vehicle which is the subject matter of the retail installment contract, if such sale were
26.18a sale for cash, instead of a retail installment sale. The cash sale price may include any taxes,
26.19charges for delivery, servicing, repairing, or improving the motor vehicle, including
26.20accessories and their installation, and any other charges agreed upon between the parties.
26.21The cash price may not include a documentary fee or document administration fee in excess
26.22of $75 for services actually rendered to, for, or on behalf of, the retail buyer in preparing,
26.23handling, and processing documents relating to the motor vehicle and the closing of the
26.24retail sale authorized under section 168.27, subdivision 31. "Documentary fee" and "document
26.25administration fee" do not include an optional electronic transfer fee as defined under
26.26subdivision 14.

26.27    Sec. 3. Minnesota Statutes 2016, section 85.016, is amended to read:
26.2885.016 BICYCLE TRAIL PROGRAM.
26.29The commissioner of natural resources shall must establish a program for the development
26.30of bicycle trails utilizing the state trails authorized by section 85.015, other state parks and
27.1recreation land, and state forests. "Bicycle trail," as used in this section, has the meaning
27.2given in section 169.011. The program shall must be coordinated with the local park trail
27.3grant program established by the commissioner pursuant to section 85.019, with the bikeway
27.4program state bicycle routes established by the commissioner of transportation pursuant to
27.5section 160.265 160.266, and with existing and proposed local bikeways. In the metropolitan
27.6area as defined in section 473.121, the program shall must be developed in accordance with
27.7plans and priorities established by the Metropolitan Council. The commissioner shall must
27.8provide technical assistance to local units of government in planning and developing bicycle
27.9trails in local parks. The bicycle trail program shall must, as a minimum, describe the
27.10location, design, construction, maintenance, and land acquisition needs of each component
27.11trail and shall give due consideration to the model standards for the establishment of
27.12recreational vehicle lanes promulgated by the commissioner of transportation pursuant to
27.13section 160.262. The program shall must be developed after consultation with the state trail
27.14council and regional and local units of government and bicyclist organizations.

27.15    Sec. 4. Minnesota Statutes 2016, section 116.03, is amended by adding a subdivision to
27.16read:
27.17    Subd. 7. Clean Air Act settlement money. "Clean Air Act settlement money" means
27.18money required to be paid to the state as a result of litigation or settlements of alleged
27.19violations of the federal Clean Air Act, United States Code, title 42, section 7401, et seq.,
27.20or rules adopted thereunder, by an automobile manufacturer. The commissioner of
27.21management and budget must establish the Clean Air Act settlement account in the
27.22environmental fund. Notwithstanding sections 16A.013 to 16A.016, the commissioner of
27.23management and budget must deposit Clean Air Act settlement money into the Clean Air
27.24Act settlement account. Clean Air Act settlement money must not be spent until it is
27.25specifically appropriated by law. The commissioner of management and budget must
27.26eliminate the Clean Air Act settlement account in the environmental fund after all Clean
27.27Air Act settlement money has been expended.

27.28    Sec. 5. Minnesota Statutes 2016, section 117.189, is amended to read:
27.29117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.
27.30(a) Sections 117.031; 117.036; 117.055, subdivision 2, paragraph (b); 117.186; 117.187;
27.31117.188 ; and 117.52, subdivisions 1a and 4, do not apply to the use of eminent domain
27.32authority by public service corporations for any purpose other than construction or expansion
27.33of:
28.1(1) a high-voltage transmission line of 100 kilovolts or more, or ancillary substations;
28.2or
28.3(2) a natural gas, petroleum, or petroleum products pipeline, or ancillary compressor
28.4stations or pumping stations.; or
28.5(3) a light rail transit or bus rapid transit line.
28.6    (b) For purposes of an award of appraisal fees under section 117.085, the fees awarded
28.7may not exceed $1,500 for all types of property except for a public service corporation's
28.8use of eminent domain for:
28.9    (1) a high-voltage transmission line, where the award may not exceed $3,000; and
28.10    (2) a light rail transit or bus rapid transit line, where the award shall be as provided in
28.11section 117.085.
28.12(c) For purposes of this section, "pipeline" does not include a natural gas distribution
28.13line transporting gas to an end user.
28.14EFFECTIVE DATE.This section is effective retroactively from January 1, 2017.

28.15    Sec. 6. Minnesota Statutes 2016, section 160.02, is amended by adding a subdivision to
28.16read:
28.17    Subd. 1a. Bikeway. "Bikeway" means a bicycle lane, bicycle path, shared use path,
28.18bicycle route, or similar bicycle facility, regardless of whether designed for the exclusive
28.19use of bicycles or for shared use with other transportation modes.

28.20    Sec. 7. Minnesota Statutes 2016, section 160.02, subdivision 27, is amended to read:
28.21    Subd. 27. Roadway; bicycle lane; bicycle route; bicycle path; bikeway. The terms
28.22"roadway," "bicycle lane," "bicycle route," and "bicycle path," and "bikeway" have the
28.23meanings given in section 169.011.

28.24    Sec. 8. Minnesota Statutes 2016, section 160.02, is amended by adding a subdivision to
28.25read:
28.26    Subd. 27a. Shared use path. "Shared use path" means a bicycle facility that is (1)
28.27physically separated from motorized vehicular traffic by an open space or barrier, (2) located
28.28within either the highway right-of-way or an independent right-of-way, and (3) available
28.29for use by other nonmotorized users.

29.1    Sec. 9. Minnesota Statutes 2016, section 160.18, is amended by adding a subdivision to
29.2read:
29.3    Subd. 4. Trunk highway appeal process. If the commissioner denies or revokes a trunk
29.4highway access permit, the property owner or occupant must be notified of the denial or
29.5revocation in writing within ten days of the denial or revocation. Within 30 days of receiving
29.6the notice of denial or revocation, the property owner or occupant may appeal the
29.7commissioner's action in a contested case proceeding under chapter 14. Notwithstanding
29.8section 14.61, the report or order of the administrative law judge constitutes the final decision.

29.9    Sec. 10. Minnesota Statutes 2016, section 160.262, subdivision 1, is amended to read:
29.10    Subdivision 1. Model standards Bikeways; powers and duties; design guidelines.
29.11(a) The legislature determines that it is in the interests of the public health, safety and welfare,
29.12to provide for the addition of bicycle and recreational vehicle lanes bikeways to proposed
29.13and existing public highways. The commissioner of transportation shall adopt, in the manner
29.14provided in chapter 14, model standards for the establishment of recreational vehicle lanes
29.15on and along proposed and existing public highways. The model standards shall include
29.16but not be limited to the following: (a) criteria for desirability of a lane in any given location,
29.17(b) provision for maintenance of the lanes, and (c) the placement of the lanes in relation to
29.18roads. The model standards shall govern state trunk highways. The commissioner of
29.19transportation is authorized to plan, design, establish, and maintain bikeways on the
29.20right-of-way of any trunk highway. The commissioner is responsible for the design and
29.21construction of all bikeway projects within the right-of-way of any trunk highway. The
29.22commissioner must consider the development of bikeways during the planning, design,
29.23construction, reconstruction, or improvement of any trunk highway, or allow the
29.24establishment of such bikeways within trunk highway right-of-way.
29.25(b) The commissioner must maintain bikeway design guidelines consistent with the state
29.26transportation goals in section 174.01.
29.27(c) The commissioner must compile and maintain a map of bikeways in the state and
29.28must publish and distribute the map's information at least once every two years in a form
29.29and manner suitable to assist persons wishing to use the bikeways.
29.30(d) The commissioner must maintain bikeways within the limits of trunk highway
29.31right-of-way unless a written agreement or limited use permit provides otherwise.

30.1    Sec. 11. Minnesota Statutes 2016, section 160.262, subdivision 3, is amended to read:
30.2    Subd. 3. Cooperation among agencies and governments. The following departments
30.3and agencies shall cooperate in providing on the nonmotorized transportation advisory
30.4committee identified in section 174.37 must provide information and advice for amendments
30.5to the model standards the bikeway design guidelines maintained by the commissioner of
30.6transportation: the Departments of Agriculture, Transportation, Natural Resources,
30.7Commerce, and Employment and Economic Development, and the Board of Water and Soil
30.8Resources. The commissioner may cooperate with and enter into agreements with the United
30.9States government, any department of the state of Minnesota, any unit of local government
30.10and, any tribal government, or any public or private corporation in order to effect the purposes
30.11of this section.

30.12    Sec. 12. Minnesota Statutes 2016, section 160.262, subdivision 4, is amended to read:
30.13    Subd. 4. Design-build bridges for nonmotorized vehicles. For streets and highways,
30.14the commissioner shall must allow for the acceptance of performance-specification bids,
30.15made by the lowest responsible bidder, for constructing design-build bridges for bicycle
30.16paths, bicycle trails, bikeways and pedestrian facilities that are:
30.17(1) designed and used primarily for nonmotorized transportation, but may allow for
30.18motorized wheelchairs, golf carts, necessary maintenance vehicles and, when otherwise
30.19permitted by law, rule, or ordinance, snowmobiles; and
30.20(2) located apart from any road or highway or protected by barriers, provided that a
30.21design-built bridge may cross over and above a road or highway.

30.22    Sec. 13. Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision
30.23to read:
30.24    Subd. 1a. State bicycle route; definition. For the purposes of this section, "state bicycle
30.25route" means a linear series of one or more roads or bikeways that is designated for bicycle
30.26travel, regardless of whether for exclusive use by bicycles or shared use with other modes
30.27of transportation.

30.28    Sec. 14. Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision
30.29to read:
30.30    Subd. 1b. State bicycle routes. The commissioner of transportation must identify state
30.31bicycle routes primarily on existing road right-of-way and trails. State bicycle routes must
30.32be identified in cooperation with road and trail authorities, including the commissioner of
31.1natural resources, and with the advice of the advisory committee on nonmotorized
31.2transportation under section 174.37. In a metropolitan area, state bicycle routes must be
31.3identified in coordination with the plans and priorities established by metropolitan planning
31.4organizations, as defined in United States Code, title 23, section 134.

31.5    Sec. 15. Minnesota Statutes 2016, section 160.266, subdivision 3, is amended to read:
31.6    Subd. 3. Connections with other bikeways. (a) The commissioner, in cooperation with
31.7road and trail authorities including the commissioner of natural resources, shall must:
31.8(1) identify existing bikeways of regional significance that are in reasonable proximity
31.9but not connected to the bikeway state bicycle routes established in under this section,
31.10including but not limited to the Lake Wobegon Trail in the counties of Stearns and Todd;
31.11and
31.12(2) support development of linkages between bikeways identified under clause (1) and
31.13the bikeway state bicycle routes established in under this section.
31.14(b) The requirements of this subdivision are a secondary priority for use of funds available
31.15under this section following establishment and enhancement of the bikeway state bicycle
31.16routes under subdivision 1 this section.

31.17    Sec. 16. Minnesota Statutes 2016, section 160.266, subdivision 4, is amended to read:
31.18    Subd. 4. Cooperation with other entities. The commissioner may contract and enter
31.19into agreements with federal agencies, other state agencies, local governments, and tribal
31.20governments, or private entities to establish, develop, maintain, and operate the bikeway
31.21state bicycle routes and to interpret associated natural and cultural resources.

31.22    Sec. 17. Minnesota Statutes 2016, section 160.266, subdivision 5, is amended to read:
31.23    Subd. 5. Funding. Bicycle Shared use paths included within the bikeway state bicycle
31.24routes and not administered by the commissioner of natural resources are eligible for funding
31.25from the environment and natural resources trust fund under chapter 116P, from the parks
31.26and trails grant program under section 85.535, from the local recreation grants program
31.27under section 85.019, subdivision 4b, and from other sources.

32.1    Sec. 18. Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision
32.2to read:
32.3    Subd. 6. Mississippi River Trail. The Mississippi River Trail bikeway must originate
32.4at Itasca State Park in Clearwater, Beltrami, and Hubbard Counties, then generally parallel
32.5the Mississippi River through the cities of Bemidji in Beltrami County, Grand Rapids in
32.6Itasca County, Brainerd in Crow Wing County, Little Falls in Morrison County, Sauk Rapids
32.7in Benton County, St. Cloud in Stearns County, Minneapolis in Hennepin County, St. Paul
32.8in Ramsey County, Hastings in Dakota County, Red Wing in Goodhue County, Wabasha
32.9in Wabasha County, Winona in Winona County, and La Crescent in Houston County to
32.10Minnesota's boundary with Iowa and there terminate. Where opportunities exist, the bikeway
32.11may be designated on both sides of the Mississippi River.

32.12    Sec. 19. [160.801] HIGHWAY SPONSORSHIP PROGRAM.
32.13    Subdivision 1. Sponsorship program. (a) The commissioner is authorized to establish
32.14a program designed to encourage businesses, civic groups, or individuals to voluntarily
32.15assist with the improvement and maintenance of real property comprising the trunk highway
32.16system, including bicycle and pedestrian trails, roadside monuments, and historic sites.
32.17(b) All support provided by volunteers or vendors must be carried out in a manner
32.18consistent with construction and maintenance plans approved by the commissioner after
32.19consultation with the volunteers.
32.20(c) The commissioner may provide assistance to (1) enhance volunteer safety, and (2)
32.21facilitate the implementation and administration of the sponsorship program.
32.22    Subd. 2. Agreements. The commissioner may enter into volunteer agreements with
32.23businesses, civic groups, or individuals to support, maintain, and make improvements to
32.24real property included in the trunk highway system. Agreements under this section are not
32.25subject to section 161.32.
32.26    Subd. 3. Support activities. (a) The volunteer support activities include but are not
32.27limited to:
32.28(1) work to create, protect, and enhance pollinator habitat along highway rights-of-way;
32.29(2) work to pick up litter along roadsides;
32.30(3) work to install enhancements, including landscaping materials, on trunk highway
32.31property;
32.32(4) financial support provided to the department for specific roadside improvements;
33.1(5) financial support consisting of the sponsor hiring a professional landscape contractor
33.2to install vegetation, maintain landscape plantings, or pick up litter, or for other similar
33.3activities along a selected area of highway right-of-way; or
33.4(6) installation of features that enhance the aesthetics of trunk highway property or the
33.5amenities available to highway users.
33.6(b) All volunteer support activities must have prior commissioner approval.
33.7    Subd. 4. Acknowledgment of sponsors. The commissioner may erect signs to publicly
33.8recognize and express appreciation to businesses, civic groups, and individuals that provide
33.9volunteer funding or services under the sponsorship program.
33.10    Subd. 5. Highway sponsorship program account; appropriation. Funds received
33.11under this section must be deposited in the highway sponsorship program account, which
33.12is created in the special revenue fund. The account consists of funds as provided by law,
33.13and any other money donated, allotted, transferred, or otherwise provided to the account.
33.14Funds in the account are annually appropriated to the commissioner for the purpose specified
33.15in the volunteer agreement.
33.16    Subd. 6. Prohibition. The commissioner must not take action under this section that
33.17would result in the loss of federal highway funds or require payment of highway funds to
33.18the federal government.

33.19    Sec. 20. Minnesota Statutes 2016, section 161.04, subdivision 5, is amended to read:
33.20    Subd. 5. Trunk highway emergency relief account. (a) The trunk highway emergency
33.21relief account is created in the trunk highway fund. Money in the account is appropriated
33.22to the commissioner to be used to fund relief activities related to an emergency, as defined
33.23in section 161.32, subdivision 3, or under section 12A.16, subdivision 1.
33.24(b) Reimbursements by the Federal Highway Administration for emergency relief
33.25payments made from the trunk highway emergency relief account must be credited to the
33.26account. Notwithstanding section 16A.28, money in the account is available until spent. If
33.27the balance of the account at the end of a fiscal year is greater than $10,000,000, the amount
33.28above $10,000,000 must be canceled to the trunk highway fund.
33.29(c) By September 1, 2012, and in every subsequent even-numbered year by September
33.301, the commissioner shall submit a report to the chairs and ranking minority members of
33.31the senate and house of representatives committees having jurisdiction over transportation
33.32policy and finance. The report must include the balance, as well as details of payments made
33.33from and deposits made to the trunk highway emergency relief account since the last report.

34.1    Sec. 21. Minnesota Statutes 2016, section 161.081, subdivision 3, is amended to read:
34.2    Subd. 3. Flexible highway account; turnback accounts. (a) The flexible highway
34.3account is created in the state treasury. Money in the account shall be used must be allocated
34.4as follows:
34.5    (1) in fiscal years 2009 and 2010, 100 percent of the excess sum, as calculated in
34.6paragraph (i), and in fiscal years 2011 and thereafter, 50 16 percent of the excess sum, as
34.7calculated in paragraph (i), amount available in the flexible highway account for counties
34.8in the metropolitan area, as defined in section 473.121, subdivision 4, but for the purposes
34.9of the calculation cities of the first class will be excluded in the metropolitan area distributed
34.10proportionally based on the most recent estimate of county population excluding the
34.11population of any city of the first class; and
34.12    (2) of the amount available in the flexible highway account less the amount under clause
34.13(1), as determined by the commissioner under this section for:
34.14    (i) restoration of former trunk highways that have reverted to counties or to statutory or
34.15home rule charter cities, or for trunk highways that will be restored and subsequently turned
34.16back by agreement between the commissioner and the local road authority;
34.17    (ii) safety improvements on county highways, municipal highways, streets, or town
34.18roads; and
34.19    (iii) routes of regional significance.
34.20    (b) For purposes of this subdivision, "restoration" means the level of effort required to
34.21improve the route that will be turned back to an acceptable condition as determined by
34.22agreement made between the commissioner and the county or city before the route is turned
34.23back.
34.24    (c) The commissioner shall review the need for funds to restore highways that have been
34.25or will be turned back. The commissioner shall determine, on a biennial basis, the percentage
34.26of funds in the flexible highway account to be distributed to each district, and within each
34.27district the percentage to be used for each of the purposes specified in paragraph (a). Money
34.28in the account may be used for safety improvements and routes of regional significance
34.29only after money is set aside to restore the identified turnbacks. The commissioner shall
34.30make these determinations only after meeting and holding discussions with committees
34.31selected by the statewide associations of both county commissioners and municipal officials.
34.32The commissioner shall, to the extent feasible, annually allocate 50 percent of the funds in
35.1the flexible highway account to the department's metropolitan district, and 50 percent to
35.2districts in greater Minnesota.
35.3    (d) Money that will be used for the restoration of trunk highways that have reverted or
35.4that will revert to cities must be deposited in the municipal turnback account, which is
35.5created in the state treasury.
35.6    (e) Money that will be used for the restoration of trunk highways that have reverted or
35.7that will revert to counties must be deposited in the county turnback account, which is
35.8created in the state treasury.
35.9    (f) Money that will be used for safety improvements must be deposited in the highway
35.10safety improvement account, which is created in the state treasury to be used as grants to
35.11statutory or home rule charter cities, towns, and counties to assist in paying the costs of
35.12constructing or reconstructing city streets, county highways, or town roads to reduce crashes,
35.13deaths, injuries, and property damage.
35.14    (g) Money that will be used for routes of regional significance must be deposited in the
35.15routes of regional significance account, which is created in the state treasury, and used as
35.16grants to statutory or home rule charter cities, towns, and counties to assist in paying the
35.17costs of constructing or reconstructing city streets, county highways, or town roads with
35.18statewide or regional significance that have not been fully funded through other state, federal,
35.19or local funding sources.
35.20    (h) As part of each biennial budget submission to the legislature, the commissioner shall
35.21describe how the money in the flexible highway account will be apportioned among the
35.22county turnback account, the municipal turnback account, the trunk highway fund for routes
35.23turned back to local governments by agreement, the highway safety improvement account,
35.24and the routes of regional significance account.
35.25    (i) The excess sum is calculated as the sum of revenue within the flexible highway
35.26account:
35.27    (1) attributed to that portion of the gasoline excise tax rate under section 296A.07,
35.28subdivision 3
, in excess of 20 cents per gallon, and to that portion of the excise tax rates in
35.29excess of the energy equivalent of a gasoline excise tax rate of 20 cents per gallon for E85
35.30and M85 under section 296A.07, subdivision 3, and special fuel under section 296A.08,
35.31subdivision 2
;
35.32    (2) attributed to a change in the passenger vehicle registration tax under section 168.013,
35.33imposed on or after July 1, 2008, that exceeds (i) the amount collected in fiscal year 2008,
36.1multiplied by (ii) the annual average United States Consumer Price Index for the calendar
36.2year previous to the current calendar year, divided by the annual average United States
36.3Consumer Price Index for calendar year 2007; and
36.4    (3) attributed to that portion of the motor vehicle sales tax revenue in excess of the
36.5percentage allocated to the flexible highway account in fiscal year 2007.
36.6    (j) For purposes of this subdivision, the United States Consumer Price Index identified
36.7in paragraph (i), clause (2), is for all urban consumers, United States city average, as
36.8determined by the United States Department of Labor.

36.9    Sec. 22. Minnesota Statutes 2016, section 161.088, subdivision 4, is amended to read:
36.10    Subd. 4. Project eligibility. (a) The commissioner shall establish eligibility requirements
36.11for projects that can be funded under the program. Eligibility must include are:
36.12(1) consistency with the statewide multimodal transportation plan under section 174.03;
36.13(2) location of the project on an interregional corridor, for a project located outside of
36.14the Department of Transportation metropolitan district;
36.15(3) placement into at least one project classification under subdivision 3;
36.16(4) a maximum project construction work will commence within three years, or a longer
36.17length of time, as determined by the commissioner, until commencement of construction
36.18work on the project; and
36.19(5) for each type of project classification under subdivision 3, a maximum allowable
36.20amount for the total project cost estimate, as determined by the commissioner with available
36.21data.
36.22(b) A project whose construction is programmed in the state transportation improvement
36.23program is not eligible for funding under the program. This paragraph does not apply to a
36.24project that is programmed as result of selection under this section.
36.25(c) A project may be, but is not required to be, identified in the 20-year state highway
36.26capital investment plan under section 174.03.
36.27(d) For each project, the commissioner must consider all of the eligibility requirements
36.28under paragraph (a). The commissioner is prohibited from considering any eligibility
36.29requirement not specified under paragraph (a).

37.1    Sec. 23. Minnesota Statutes 2016, section 161.088, subdivision 5, is amended to read:
37.2    Subd. 5. Project selection process; criteria. (a) The commissioner shall must establish
37.3a process for identification, evaluation, and selection of to identify, evaluate, and select
37.4projects under the program. The process must be consistent with the requirements of this
37.5subdivision and must not include any additional evaluation criteria.
37.6(b) As part of the project selection process, the commissioner shall must annually accept
37.7recommendations on candidate projects from area transportation partnerships and other
37.8interested stakeholders in each Department of Transportation district. The commissioner
37.9must determine the eligibility for each candidate project identified under this paragraph,
37.10the commissioner shall determine eligibility, classify, and if appropriate, evaluate the project
37.11for the program. For each eligible project, the commissioner must classify and evaluate the
37.12project for the program, using all of the criteria established under paragraph (c).
37.13(c) Project evaluation and prioritization must be performed on the basis of objective
37.14criteria, which must include Projects must be evaluated using all of the following criteria:
37.15(1) a return on investment measure that provides for comparison across eligible projects;
37.16(2) measurable impacts on commerce and economic competitiveness;
37.17(3) efficiency in the movement of freight, including but not limited to:
37.18(i) measures of annual average daily traffic and commercial vehicle miles traveled, which
37.19may include data near the project location on that trunk highway or on connecting trunk
37.20and local highways; and
37.21(ii) measures of congestion or travel time reliability, which may be within or near the
37.22project limits, or both;
37.23(4) improvements to traffic safety;
37.24(5) connections to regional trade centers, local highway systems, and other transportation
37.25modes;
37.26(6) the extent to which the project addresses multiple transportation system policy
37.27objectives and principles; and
37.28(7) support and consensus for the project among members of the surrounding community;
37.29and
37.30(8) regional balance throughout the state.
38.1(d) The list of all projects evaluated must be made public and must include the score of
38.2each project.
38.3(e) As part of the project selection process, the commissioner may divide funding to be
38.4separately available among projects within each classification under subdivision 3, and may
38.5apply separate or modified criteria among those projects falling within each classification.

38.6    Sec. 24. Minnesota Statutes 2016, section 161.088, subdivision 7, is amended to read:
38.7    Subd. 7. Legislative report; evaluation. (a) Starting in 2014, Annually by November
38.81, the commissioner shall must electronically submit a report on the corridors of commerce
38.9program to the chairs and ranking minority members of the legislative committees with
38.10jurisdiction over transportation policy and finance. At a minimum, the report must include:
38.11(1) a summary of the program, including a review of the:
38.12(i) project selection process details that address program design and implementation,
38.13decision-making procedures, and eligibility and criteria, evaluation;
38.14(ii) criteria measurement methodologies and criteria weighting used in project selection;
38.15and
38.16(iii) the policy that provides the weight given each criterion;
38.17(2) a summary of program finance, including funds expended in the previous selection
38.18cycle, any future operating costs assigned under subdivision 6, and total funds expended
38.19since program inception;
38.20(2) (3) a listing list of projects funded under the program in the previous selection cycle,
38.21including:
38.22(i) project classification;
38.23(ii) a breakdown of project costs and funding sources; and
38.24(iii) any future operating costs assigned under subdivision 6; and
38.25(iv) a brief project description that is comprehensible to a lay audience;
38.26(3) (4) a listing comprehensive list of evaluated projects and candidate project
38.27recommendations as required under subdivision 5, paragraph (b), including that identifies
38.28for each project: eligibility, classification, evaluation results for each criterion, score, and
38.29disposition in the selection process; and
38.30(4) (5) any recommendations for changes to statutory requirements of the program.
39.1(b) Starting in 2016, and In every even-numbered year thereafter, the commissioner
39.2shall must incorporate into the report the results of an independent evaluation of impacts
39.3and effectiveness of the program. The evaluation must be performed by agency staff or a
39.4consultant. The individual or individuals performing the evaluation must have experience
39.5in program evaluation, but must not be regularly involved in the program's implementation.
39.6(c) Notwithstanding paragraph (a), a report is not required in a year in which:
39.7(1) no project selection was completed during the preceding 12 months; and
39.8(2) an evaluation under paragraph (b) is not due.

39.9    Sec. 25. Minnesota Statutes 2016, section 161.115, subdivision 190, is amended to read:
39.10    Subd. 190. Route No. 259. Beginning at a point on Statutory Route No. 100, at or near
39.11Henderson; thence extending in a general southeasterly direction to a point on Statutory
39.12Route No. 123, at or near Le Sueur.
39.13EFFECTIVE DATE.This section is effective the day after the commissioner of
39.14transportation receives a copy of the agreement between the commissioner of transportation
39.15and the governing body of Le Sueur County to transfer jurisdiction of Legislative Route
39.16No. 123 and after the commissioner notifies the revisor of statutes under section 145,
39.17paragraph (b).

39.18    Sec. 26. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to
39.19read:
39.20    Subd. 83. Chip A. Imker Memorial Highway. That segment of marked Trunk Highway
39.2165 from Isanti County State-Aid Highway 19, known as 305th Avenue NE, to the northerly
39.22limit of Cambridge Township is designated as "Chip A. Imker Memorial Highway." Subject
39.23to section 161.139, the commissioner shall adopt a suitable design to mark this highway
39.24and erect appropriate signs.

39.25    Sec. 27. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to
39.26read:
39.27    Subd. 84. Medal of Honor Recipient Kenneth L. Olson Highway. That segment of
39.28marked Trunk Highway 23 within the city of Paynesville and the town of Paynesville is
39.29designated as "Medal of Honor Recipient Kenneth L. Olson Highway." Subject to section
39.30161.139, the commissioner shall adopt a suitable design to mark this highway and erect
39.31appropriate signs.

40.1    Sec. 28. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to
40.2read:
40.3    Subd. 85. Corporal Benjamin S. Kopp Bridge. The bridge on Dakota County State-Aid
40.4Highway 46, known as Brandel Drive within the city of Coates, over marked U.S. Highway
40.552 is designated as "Corporal Benjamin S. Kopp Bridge." Subject to section 161.139, the
40.6commissioner shall adopt a suitable design to mark this highway and erect appropriate signs.

40.7    Sec. 29. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to
40.8read:
40.9    Subd. 86. Senator Jim Metzen Memorial Highway. That segment of marked U.S.
40.10Highway 52 located within Dakota County is designated as "Senator Jim Metzen Memorial
40.11Highway." Notwithstanding section 161.139, the commissioner shall adopt a suitable design
40.12to mark this highway and erect appropriate signs.

40.13    Sec. 30. Minnesota Statutes 2016, section 161.21, subdivision 1, is amended to read:
40.14    Subdivision 1. Location and design of highways. The commissioner may make or
40.15cause to be made such studies and investigations as the commissioner deems necessary for
40.16the purpose of determining the most advantageous location and design of trunk highways
40.17from the standpoint of both present and future traffic needs, and in making such
40.18determinations the commissioner may take into consideration the probable future
40.19development of both urban and rural areas and the effect of such development on future
40.20traffic needs as indicated by such studies and investigations and the location and design
40.21with respect to recreational vehicle lane bikeway establishment.

40.22    Sec. 31. Minnesota Statutes 2016, section 161.321, subdivision 6, is amended to read:
40.23    Subd. 6. Rules; eligibility. (a) The rules adopted by the commissioner of administration
40.24to define small businesses and to set time and other eligibility requirements for participation
40.25in programs under sections 16C.16 to 16C.19 apply to this section. The commissioner may
40.26promulgate other rules necessary to carry out this section.
40.27(b) In addition to other eligibility requirements, a small targeted group business or
40.28veteran-owned small business is eligible for the bid preferences under this section only for
40.29eight years following the latest of:
40.30(1) May 1, 2012;
41.1(2) for a targeted group business, the date of initial certification by the commissioner of
41.2administration, as provided under section 16C.19;
41.3(3) for a veteran-owned small business, the date of initial certification by the United
41.4States Department of Veterans Affairs, as provided under section 16C.19, paragraph (d);
41.5or
41.6(4) for a veteran-owned small business, the release or discharge of any one of the owners
41.7from military active service, as defined in section 190.05, subdivision 5, lasting for a period
41.8of 179 days or longer.

41.9    Sec. 32. Minnesota Statutes 2016, section 161.38, is amended by adding a subdivision to
41.10read:
41.11    Subd. 8. Spending on trunk highway system. The commissioner must maintain
41.12information on expenditures by local road authorities from local funding sources for trunk
41.13highway system projects.

41.14    Sec. 33. Minnesota Statutes 2016, section 161.44, subdivision 5, is amended to read:
41.15    Subd. 5. Conveyance to highest bidder in certain cases. If the larger tract has been
41.16platted into lots or divided into smaller tracts and the commissioner elects to proceed under
41.17this subdivision, or if the lands constituted an entire tract and the person from whom the
41.18lands were acquired and the person's spouse are deceased, or if the offers as provided for
41.19are not accepted and the amount of money not tendered within the time prescribed, the lands
41.20may be sold and conveyed to the owner of the land abutting upon the lands in the same
41.21manner and under the same terms provided under subdivision 2, or the commissioner may
41.22sell the lands to the highest responsible bidder upon three weeks' published notice of such
41.23sale in a newspaper or other periodical of general circulation in the general area where the
41.24lands are located. All bids may be rejected and new bids received upon like advertisement.

41.25    Sec. 34. Minnesota Statutes 2016, section 161.44, subdivision 6a, is amended to read:
41.26    Subd. 6a. Services of licensed real estate broker. If the lands remain unsold after being
41.27offered for sale to the highest bidder are withdrawn from sale under subdivision 6b, the
41.28commissioner may retain the services of a licensed real estate broker to find a buyer. The
41.29sale price may be negotiated by the broker, but must not be less than 90 percent of the
41.30appraised market value as determined by the commissioner. The broker's fee must be
41.31established by prior agreement between the commissioner and the broker, and must not
42.1exceed ten percent of the sale price for sales of $10,000 or more. The broker's fee must be
42.2paid to the broker from the proceeds of the sale.

42.3    Sec. 35. Minnesota Statutes 2016, section 161.44, is amended by adding a subdivision to
42.4read:
42.5    Subd. 6b. Unsold lands. If lands remain unsold after being offered for sale to the highest
42.6bidder, the commissioner may offer the remaining lands to any person who agrees to pay
42.7the minimum bid established for the public sale. The sale must continue until all eligible
42.8lands have been sold or the commissioner withdraws the remaining lands from sale. The
42.9lands to be sold must be listed on the department's Unsold Property Inventory list.

42.10    Sec. 36. Minnesota Statutes 2016, section 168.013, subdivision 1a, is amended to read:
42.11    Subd. 1a. Passenger automobile; hearse. (a) On passenger automobiles as defined in
42.12section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax shall be
42.13is $10 plus an additional tax equal to 1.25 percent of the base value.
42.14    (b) Subject to the classification provisions herein, "base value" means the manufacturer's
42.15suggested retail price of the vehicle including destination charge using list price information
42.16published by the manufacturer or determined by the registrar if no suggested retail price
42.17exists, and shall not include the cost of each accessory or item of optional equipment
42.18separately added to the vehicle and the suggested retail price.
42.19    (c) If the manufacturer's list price information contains a single vehicle identification
42.20number followed by various descriptions and suggested retail prices, the registrar shall
42.21select from those listings only the lowest price for determining base value.
42.22    (d) If unable to determine the base value because the vehicle is specially constructed,
42.23or for any other reason, the registrar may establish such value upon the cost price to the
42.24purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
42.25or use tax or any local sales or other local tax.
42.26    (e) The registrar shall classify every vehicle in its proper base value class as follows:
42.27
FROM
TO
42.28
$
0
$ 199.99
42.29
$
200
$ 399.99
42.30and thereafter a series of classes successively set in brackets having a spread of $200
42.31consisting of such number of classes as will permit classification of all vehicles.
43.1    (f) The base value for purposes of this section shall be the middle point between the
43.2extremes of its class.
43.3    (g) The registrar shall establish the base value, when new, of every passenger automobile
43.4and hearse registered prior to the effective date of Extra Session Laws 1971, chapter 31,
43.5using list price information published by the manufacturer or any nationally recognized
43.6firm or association compiling such data for the automotive industry. If unable to ascertain
43.7the base value of any registered vehicle in the foregoing manner, the registrar may use any
43.8other available source or method. The registrar shall calculate tax using base value
43.9information available to dealers and deputy registrars at the time the application for
43.10registration is submitted. The tax on all previously registered vehicles shall be computed
43.11upon the base value thus determined taking into account the depreciation provisions of
43.12paragraph (h).
43.13    (h) The annual additional tax must be computed upon a percentage of the base value as
43.14follows: during the first year of vehicle life, upon 100 percent of the base value; for the
43.15second year, 90 percent of such value; for the third year, 80 percent of such value; for the
43.16fourth year, 70 percent of such value; for the fifth year, 60 percent of such value; for the
43.17sixth year, 50 percent of such value; for the seventh year, 40 percent of such value; for the
43.18eighth year, 30 percent of such value; for the ninth year, 20 percent of such value; for the
43.19tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.
43.20    (i) In no event shall the annual additional tax be less than $25.
43.21    (j) For any vehicle previously registered in Minnesota and regardless of prior ownership,
43.22the annual additional tax total amount due under this subdivision and subdivision 1m must
43.23not exceed the smallest total amount of annual additional tax previously paid or due on the
43.24vehicle.
43.25EFFECTIVE DATE.This section is effective the day following final enactment, and
43.26applies to taxes payable for a registration period starting on or after January 1, 2018.

43.27    Sec. 37. Minnesota Statutes 2016, section 168.013, is amended by adding a subdivision
43.28to read:
43.29    Subd. 1m. Electric vehicle. In addition to the tax under subdivision 1a, a surcharge of
43.30$75 is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a.
43.31Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision must
43.32be deposited in the highway user tax distribution fund.
44.1EFFECTIVE DATE.This section is effective the day following final enactment, and
44.2applies to a registration period starting on or after January 1, 2018.

44.3    Sec. 38. Minnesota Statutes 2016, section 168.021, subdivision 1, is amended to read:
44.4    Subdivision 1. Disability plates; application. (a) When a motor vehicle registered under
44.5section 168.017, a motorcycle, a motorized bicycle, a one-ton pickup truck, or a self-propelled
44.6recreational vehicle is owned or primarily operated by a permanently physically disabled
44.7person or a custodial parent or guardian of a permanently physically disabled minor person,
44.8the owner may apply for and secure from the commissioner (1) immediately, a temporary
44.9permit valid for 30 days if the applicant is eligible for the disability plates issued under this
44.10section and (2) two disability plates with attached emblems, one plate to be attached to the
44.11front, and one to the rear of the motor vehicle, truck, or recreational vehicle, or, in the case
44.12of a motorcycle or a motorized bicycle, one disability plate the same size as a regular
44.13motorcycle plate.
44.14    (b) The commissioner shall not issue more than one plate to the owner of a motorcycle
44.15or a motorized bicycle and not more than one set of plates to any owner of another vehicle
44.16described in paragraph (a) at the same time unless the state Council on Disability approves
44.17the issuance of a second plate or set of plates to an owner.
44.18    (c) When the owner first applies for the disability plate or plates, the owner must submit
44.19a medical statement in a format approved by the commissioner under section 169.345, or
44.20proof of physical disability provided for in that section.
44.21    (d) No medical statement or proof of disability is required when an owner applies for a
44.22plate or plates for one or more vehicles listed in paragraph (a) that are specially modified
44.23for and used exclusively by permanently physically disabled persons.
44.24    (e) The owner of a vehicle listed in paragraph (a) may apply for and secure (i)
44.25immediately, a permit valid for 30 days, if the applicant is eligible to receive the disability
44.26plate or plates issued under this section, and (ii) a disability plate or plates for the vehicle
44.27if:
44.28    (1) the owner employs a permanently physically disabled person who would qualify for
44.29the disability plate or plates under this section; and
44.30    (2) the owner furnishes the motor vehicle to the physically disabled person for the
44.31exclusive use of that person in the course of employment.
44.32EFFECTIVE DATE.This section is effective January 1, 2018.

45.1    Sec. 39. Minnesota Statutes 2016, section 168.021, subdivision 2, is amended to read:
45.2    Subd. 2. Plate design; furnished by commissioner. The commissioner shall design
45.3and furnish two disability plates, or one disability plate for a motorcycle or a motorized
45.4bicycle that is the same size as a regular motorcycle plate, with attached emblem or emblems
45.5to an eligible owner. The emblem must bear the internationally accepted wheelchair symbol,
45.6as designated in section 326B.106, subdivision 9, approximately three inches square. The
45.7emblem must be large enough to be visible plainly from a distance of 50 feet. An applicant
45.8eligible for a disability plate or plates shall pay the motor vehicle registration fee authorized
45.9by sections 168.013 and 168.09.
45.10EFFECTIVE DATE.This section is effective January 1, 2018.

45.11    Sec. 40. Minnesota Statutes 2016, section 168.021, subdivision 2a, is amended to read:
45.12    Subd. 2a. Plate transfer. (a) When ownership of a vehicle described in subdivision 1,
45.13is transferred, the owner of the vehicle shall remove the disability plate or plates. The buyer
45.14of the motor vehicle is entitled to receive a regular plate or plates for the vehicle without
45.15further cost for the remainder of the registration period.
45.16(b) Notwithstanding section 168.12, subdivision 1, the disability plate or plates may be
45.17transferred to a replacement vehicle on notification to the commissioner. However, the
45.18disability plate or plates may not be transferred unless the replacement vehicle (1) is listed
45.19under section 168.012, subdivision 1, and, in case of a single plate for a motorcycle or a
45.20motorized bicycle, the replacement vehicle is a motorcycle or a motorized bicycle, and (2)
45.21is owned or primarily operated by the permanently physically disabled person.
45.22EFFECTIVE DATE.This section is effective January 1, 2018.

45.23    Sec. 41. [168.1256] RETIRED LAW ENFORCEMENT SPECIAL PLATES.
45.24    Subdivision 1. Issuance of plates. The commissioner shall issue retired law enforcement
45.25license special plates or a single motorcycle plate to an applicant who:
45.26(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup
45.27truck, motorcycle, or recreational vehicle;
45.28(2) is a retired peace officer as defined in section 626.84, subdivision 1, paragraph (c)
45.29or (d);
45.30(3) provides a letter from the chief law enforcement officer affirming that the applicant
45.31is a retired peace officer who served ten or more years and separated in good standing;
46.1(4) pays a fee of $10 for each set of plates, along with any other fees required by this
46.2chapter;
46.3(5) pays the registration tax as required under section 168.013; and
46.4(6) complies with this chapter and rules governing registration of motor vehicles and
46.5licensing of drivers.
46.6    Subd. 2. Design. The commissioner shall design an emblem and inscription for the
46.7special plates, in consultation with interested law enforcement agencies and organizations.
46.8    Subd. 3. Plates transfer. On application to the commissioner and payment of a transfer
46.9fee of $5, special plates issued under this section may be transferred to another motor vehicle
46.10if the subsequent vehicle is:
46.11(1) qualified under subdivision 1, clause (1), to bear the special plates; and
46.12(2) registered to the same individual to whom the special plates were originally issued.
46.13    Subd. 4. Exemption. Special plates issued under this section are not subject to section
46.14168.1293, subdivision 2.
46.15EFFECTIVE DATE.This section is effective January 1, 2018, for special retired law
46.16enforcement plates issued on or after that date.

46.17    Sec. 42. [168.1294] "START SEEING MOTORCYCLES" SPECIAL PLATES.
46.18    Subdivision 1. Issuance of plates. The commissioner must issue "Start Seeing
46.19Motorcycles" special license plates or a single motorcycle plate to an applicant who:
46.20(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup
46.21truck, motorcycle, or recreational vehicle;
46.22(2) pays a fee of $10 for each set of plates;
46.23(3) pays the registration tax as required under section 168.013, along with any other fees
46.24required by this chapter;
46.25(4) contributes a minimum of $10 annually to the motorcycle safety fund, created under
46.26section 171.06, subdivision 2a, paragraph (a), clause (1); and
46.27(5) complies with this chapter and rules governing registration of motor vehicles and
46.28licensing of drivers.
46.29    Subd. 2. Design. The representatives of American Bikers for Awareness, Training, and
46.30Education of Minnesota must design the special plate to contain the inscription "Start Seeing
47.1Motorcycles" between the bolt holes on the bottom of the plate with a design area on the
47.2left side of the plate, subject to the approval of the commissioner.
47.3    Subd. 3. Plates transfer. On application to the commissioner and payment of a transfer
47.4fee of $5, special plates issued under this section may be transferred to another motor vehicle
47.5if the subsequent vehicle is:
47.6(1) qualified under subdivision 1, clause (1), to bear the special plates; and
47.7(2) registered to the same individual to whom the special plates were originally issued.
47.8    Subd. 4. Exemption. Special plates issued under this section are not subject to section
47.9168.1293, subdivision 2.
47.10    Subd. 5. Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are
47.11credited to the vehicle services operating account in the special revenue fund.
47.12    Subd. 6. No refund. Contributions under this section must not be refunded.
47.13EFFECTIVE DATE.This section is effective January 1, 2018, for special "Start Seeing
47.14Motorcycles" plates issued on or after that date.

47.15    Sec. 43. Minnesota Statutes 2016, section 168.27, is amended by adding a subdivision to
47.16read:
47.17    Subd. 31. Documentary fee. (a) A motor vehicle dealer may not charge a documentary
47.18fee or document administration fee in excess of the amounts provided under paragraph (b)
47.19for services actually rendered to, for, or on behalf of the retail buyer or lessee to prepare,
47.20handle, and process documents for the closing of a motor vehicle retail sale or lease. The
47.21fee must be separately stated on the sales agreement maintained under Minnesota Rules,
47.22part 7400.5200, and may be excluded from the dealer's advertised price.
47.23(b) For motor vehicle sales or leases made on or after July 1, 2017, through June 30,
47.242020, the maximum fee is $100. For motor vehicle sales or leases made on or after July 1,
47.252020, the maximum fee is $125.
47.26(c) "Documentary fee" and "document administration fee" do not include an optional
47.27electronic transfer fee as defined under section 53C.01, subdivision 14.

47.28    Sec. 44. Minnesota Statutes 2016, section 168.33, subdivision 2, is amended to read:
47.29    Subd. 2. Deputy registrars. (a) The commissioner may appoint, and for cause
47.30discontinue, a deputy registrar for any statutory or home rule charter city as the public
47.31interest and convenience may require, without regard to whether the county auditor of the
48.1county in which the city is situated has been appointed as the deputy registrar for the county
48.2or has been discontinued as the deputy registrar for the county, and without regard to whether
48.3the county in which the city is situated has established a county license bureau that issues
48.4motor vehicle licenses as provided in section 373.32.
48.5(b) The commissioner may appoint, and for cause discontinue, a deputy registrar for any
48.6statutory or home rule charter city as the public interest and convenience may require, if
48.7the auditor for the county in which the city is situated chooses not to accept appointment
48.8as the deputy registrar for the county or is discontinued as a deputy registrar, or if the county
48.9in which the city is situated has not established a county license bureau that issues motor
48.10vehicle licenses as provided in section 373.32.
48.11(c) The commissioner may appoint, and for cause discontinue, the county auditor of
48.12each county as a deputy registrar.
48.13(d) Despite any other provision, a person other than a county auditor or a director of a
48.14county license bureau, who was appointed by the registrar before August 1, 1976, as a
48.15deputy registrar for any statutory or home rule charter city, may continue to serve as deputy
48.16registrar and may be discontinued for cause only by the commissioner. The county auditor
48.17who appointed the deputy registrars is responsible for the acts of deputy registrars appointed
48.18by the auditor.
48.19(e) Each deputy, before entering upon the discharge of duties, shall take and subscribe
48.20an oath to faithfully discharge the duties and to uphold the laws of the state.
48.21(f) If a deputy registrar appointed under this subdivision is not an officer or employee
48.22of a county or statutory or home rule charter city, the deputy shall in addition give bond to
48.23the state in the sum of $10,000, or a larger sum as may be required by the commissioner,
48.24conditioned upon the faithful discharge of duties as deputy registrar.
48.25(g) A corporation governed by chapter 302A or 317A may be appointed a deputy registrar.
48.26Upon application by an individual serving as a deputy registrar and the giving of the requisite
48.27bond as provided in this subdivision, personally assured by the individual or another
48.28individual approved by the commissioner, a corporation named in an application then
48.29becomes the duly appointed and qualified successor to the deputy registrar.
48.30(h) Each deputy registrar appointed under this subdivision shall keep and maintain office
48.31locations approved by the commissioner for the registration of vehicles and the collection
48.32of taxes and fees on vehicles.
49.1(i) The deputy registrar shall keep records and make reports to the commissioner as the
49.2commissioner requires. The records must be maintained at the offices of the deputy registrar.
49.3in a manner that complies with sections 13.05, subdivision 5, and 13.055. As an alternative
49.4to paper copy storage, a deputy registrar may retain records and documents in a secure
49.5electronic medium that complies with the security requirements under the United States
49.6Federal Bureau of Investigation, Criminal Justice Information Services Division, Policy 5.4
49.7or any successor policy, provided 60 days have elapsed since the transaction and subject to
49.8standards established by the commissioner. The deputy registrar is responsible for all costs
49.9associated with the conversion to electronic records and maintenance of the electronic
49.10storage medium, including the destruction of existing paper records after conversion to the
49.11electronic format. All queries and responses in the secure electronic medium, and all actions
49.12in which data are entered, updated, accessed, or shared or disseminated by the deputy
49.13registrar must be contained in a data audit trail. Data contained in the audit trail are public
49.14to the extent the data are not otherwise classified under this section. The records and offices
49.15of the deputy registrar must at all times be open to the inspection of the commissioner or
49.16the commissioner's agents. The deputy registrar shall report to the commissioner by the
49.17next working day following receipt all registrations made and taxes and fees collected by
49.18the deputy registrar.
49.19(j) The filing fee imposed under subdivision 7 must be deposited in the treasury of the
49.20place for which appointed or, if not a public official, a deputy shall retain the filing fee, but
49.21the registration tax and any additional fees for delayed registration the deputy registrar has
49.22collected the deputy registrar shall deposit by the next working day following receipt in an
49.23approved state depository to the credit of the state through the commissioner of management
49.24and budget. The place for which the deputy registrar is appointed through its governing
49.25body must provide the deputy registrar with facilities and personnel to carry out the duties
49.26imposed by this subdivision if the deputy is a public official. In all other cases, the deputy
49.27shall maintain a suitable facility for serving the public.

49.28    Sec. 45. Minnesota Statutes 2016, section 168A.09, subdivision 1, is amended to read:
49.29    Subdivision 1. Application, issuance, form, bond, and notice. (a) In the event a
49.30certificate of title is lost, stolen, mutilated, or destroyed, or becomes illegible, the owner or
49.31legal representative of the owner named in the certificate may make submit an application
49.32to the department or a deputy registrar for a duplicate in a format prescribed by the
49.33department. The department shall or deputy registrar must issue a duplicate certificate of
49.34title if satisfied that the applicant is entitled thereto to the duplicate certificate of title. The
49.35duplicate certificate of title shall must be plainly marked as a duplicate and mailed or
50.1delivered to the owner. The department shall or deputy registrar must indicate in its the
50.2driver and vehicle information system records that a duplicate certificate of title has been
50.3issued. As a condition to issuing a duplicate certificate of title, the department may require
50.4a bond from the applicant in the manner and format prescribed in section 168A.07,
50.5subdivision 1
, clause (2). The duplicate certificate of title shall must contain the legend:
50.6"This duplicate certificate of title may be subject to the rights of a person under the original
50.7certificate."
50.8(b) On and after the effective date of this section, the commissioner must allow duplicate
50.9certificate of title issuance by a deputy registrar, subject to procedures established by the
50.10commissioner.
50.11EFFECTIVE DATE.This section is effective August 1, 2018.

50.12    Sec. 46. [168A.125] TRANSFER-ON-DEATH TITLE TO MOTOR VEHICLE.
50.13    Subdivision 1. Titled as transfer-on-death. A natural person who is the owner of a
50.14motor vehicle may have the motor vehicle titled in transfer-on-death or TOD form by
50.15including in the application for the certificate of title a designation of a beneficiary or
50.16beneficiaries to whom the motor vehicle must be transferred on death of the owner or the
50.17last survivor of joint owners with rights of survivorship, subject to the rights of secured
50.18parties.
50.19    Subd. 2. Designation of beneficiary. A motor vehicle is registered in transfer-on-death
50.20form by designating on the certificate of title the name of the owner and the names of joint
50.21owners with identification of rights of survivorship, followed by the words "transfer-on-death
50.22to (name of beneficiary or beneficiaries)." The designation "TOD" may be used instead of
50.23"transfer-on-death." A title in transfer-on-death form is not required to be supported by
50.24consideration, and the certificate of title in which the designation is made is not required to
50.25be delivered to the beneficiary or beneficiaries in order for the designation to be effective.
50.26If the owner of the motor vehicle is married at the time of the designation, the designation
50.27of a beneficiary other than the owner's spouse requires the spouse's written consent.
50.28    Subd. 3. Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries have
50.29no interest in the motor vehicle until the death of the owner or the last survivor of joint
50.30owners with rights of survivorship. A beneficiary designation may be changed at any time
50.31by the owner or by all joint owners with rights of survivorship, without the consent of the
50.32beneficiary or beneficiaries, by filing an application for a new certificate of title.
51.1    Subd. 4. Vesting of ownership in beneficiary. Ownership of a motor vehicle titled in
51.2transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of
51.3the owner or the last of the joint owners with rights of survivorship, subject to the rights of
51.4secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner
51.5may apply for a new certificate of title to the motor vehicle upon submitting a certified death
51.6record of the owner of the motor vehicle. If no transfer-on-death beneficiary or beneficiaries
51.7survive the owner of a motor vehicle, the motor vehicle must be included in the probate
51.8estate of the deceased owner. A transfer of a motor vehicle to a transfer-on-death beneficiary
51.9or beneficiaries is not a testamentary transfer.
51.10    Subd. 5. Rights of creditors. (a) This section does not limit the rights of any secured
51.11party or creditor of the owner of a motor vehicle against a transfer-on-death beneficiary or
51.12beneficiaries.
51.13(b) The state or a county agency with a claim or lien authorized by section 246.53,
51.14256B.15, 261.04, or 270C.63 is a creditor for purposes of this subdivision. A claim authorized
51.15by section 256B.15 against the estate of an owner of a motor vehicle titled in
51.16transfer-on-death form voids any transfer-on-death conveyance of a motor vehicle as
51.17described in this section. A claim or lien under section 246.53, 261.04, or 270C.63 continues
51.18to apply against the designated beneficiary or beneficiaries after the transfer under this
51.19section if other assets of the deceased owner's estate are insufficient to pay the amount of
51.20the claim. The claim or lien continues to apply to the motor vehicle until the designated
51.21beneficiary sells or transfers it to a person against whom the claim or lien does not apply
51.22and who did not have actual notice or knowledge of the claim or lien.

51.23    Sec. 47. Minnesota Statutes 2016, section 168A.141, is amended to read:
51.24168A.141 MANUFACTURED HOME AFFIXED TO REAL PROPERTY.
51.25    Subdivision 1. Certificates surrendered for cancellation. (a) When a manufactured
51.26home is to be affixed or is affixed, as defined in section 273.125, subdivision 8, paragraph
51.27(b), to real property, and financed by the giving of a mortgage on the real property, the
51.28owner of the manufactured home shall may surrender the manufacturer's certificate of origin
51.29or certificate of title to the department for cancellation. The owner of so that the manufactured
51.30home shall give the department the address and legal description of the becomes an
51.31improvement to real property. The department may require the filing of other information
51.32and is no longer titled as personal property. The department must not issue a certificate of
51.33title for a manufactured home under chapter 168A if the manufacturer's certificate of origin
51.34is or has been surrendered under this subdivision, except as provided in section 168A.142.
52.1Upon surrender of the manufacturer's certificate of origin or the certificate of title, the
52.2department shall must issue notice of surrender to the owner, and upon recording an affidavit
52.3of affixation, which the county recorder or registrar of titles, as applicable, must accept, the
52.4manufactured home is deemed to be an improvement to real property. The notice of surrender
52.5may be recorded in the office of the county recorder or with the registrar of titles if the land
52.6is registered but need not contain an acknowledgment. An affidavit of affixation by the
52.7owner of the manufactured home must include the following information:
52.8(1) the name, residence address, and mailing address of owner or owners of the
52.9manufactured home;
52.10(2) the legal description of the real property in which the manufactured home is, or will
52.11be, located;
52.12(3) a copy of the surrendered manufacturer's certificate of origin or certificate of title
52.13and the notice of surrender;
52.14(4) a written statement from the county auditor or county treasurer of the county where
52.15the manufactured home is located stating that all property taxes payable in the current year,
52.16as provided under section 273.125, subdivision 8, paragraph (b), have been paid, or are not
52.17applicable;
52.18(5) the name and address of the person designated by the applicant to record the original
52.19affidavit of affixation with the county recorder or registrar of titles for the county where the
52.20real property is located; and
52.21(6) the signature of the person who executes the affidavit, properly executed before a
52.22person authorized to authenticate an affidavit in this state.
52.23(b) The person designated in paragraph (a), clause (5), must record, or arrange for the
52.24recording of, the affidavit of affixation, accompanied by the fees for recording and for
52.25issuing a certified copy of the notice, including all attachments, showing the recording date.
52.26Upon obtaining the certified copy of the notice under this paragraph, the person designated
52.27in the affidavit must deliver the certified copy to the county auditor of the county in which
52.28the real property to which the manufactured home was affixed is located.
52.29    (c) The department is not liable for any errors, omissions, misstatements, or other
52.30deficiencies or inaccuracies in documents presented to the department under this section,
52.31if the documents presented appear to satisfy the requirements of this section. The department
52.32has no obligation to investigate the accuracy of statements contained in the documents.
53.1    Subd. 1a. Affidavit form. An affidavit of affixation must be in substantially the following
53.2form and must contain the following information.
53.3MANUFACTURED HOME AFFIDAVIT OF AFFIXATION
53.4PURSUANT TO MINNESOTA STATUTES, SECTION 168A.141
53.5Homeowner, being duly sworn, on his or her oath, states as follows:
53.61. Homeowner owns the manufactured home ("home") described as follows:
53.7
.....
53.8
53.9
New/Used
Year
Manufacturer's
Name
Model Name or
Model No.
Manufacturer's
Serial No.
Length/Width
53.102. A copy of the surrendered manufacturer's certificate of origin or certificate of title is
53.11attached.
53.123. A copy of the notice of surrender issued from the Minnesota Department of Public Safety
53.13Driver and Vehicle Services is attached.
53.144. The home is or will be located at the following "Property Address":
53.15
.....
53.16
Street or Route .....
City .....
County .....
State .....
Zip Code .....
53.175. The legal description of the property address ("land") is as follows or as attached hereto:
53.18
.....
53.19
.....
53.20
.....
53.216. The homeowner is the owner of the land.
53.227. The home is, or must be promptly upon delivery, anchored to the land by attachment to
53.23a permanent foundation and connected to appropriate residential utilities (e.g., water, gas,
53.24electricity, sewer).
53.258. The homeowner intends that the home be an immovable permanent improvement to the
53.26land, free of any personal property security interest.
53.279. A copy of the written statement from the county auditor or county treasurer of the county
53.28in which the manufactured home is then located, stating that all property taxes payable in
53.29the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph
53.30(b)), have been paid, or are not applicable, is attached.
53.3110. The home must be assessed and taxed as an improvement to the land.
54.111. The name and address of the person designated by the homeowner to record the original
54.2affidavit of surrender with the county recorder or registrar of titles of the county in which
54.3the real estate is located is:
54.4
Name .....
54.5
Street Address .....
54.6
City, State, Zip Code .....
54.7
Phone .....
54.8
E-mail .....
54.9IN WITNESS WHEREOF, homeowner(s) have executed this affidavit on this ....... day of
54.10......., 20...
54.11
.....
.....
54.12
Homeowner Signature
Address
54.13
.....
.....
54.14
Printed Name
City, State
54.15
.....
54.16
Homeowner Signature (if applicable)
54.17
.....
54.18
Printed Name
54.19This instrument was drafted by, and when recorded return to:
54.20
.....
54.21
.....
54.22
.....
54.23Subscribed and sworn to before me this ....... day of ......., .......
54.24
......................................................................
54.25
Signature of Notary Public or Other Official
54.26Notary Stamp or Seal
54.27(optional)
54.28Lender's Statement of Intent:
54.29The undersigned ("lender") intends that the home be immovable and a permanent
54.30improvement to the land free of any personal property security interest.
54.31
.....
54.32
Lender
54.33
By: .....
54.34
Authorized Signature
55.1
STATE OF ..... )
55.2
..... ) ss:
55.3
COUNTY OF ..... )
55.4On the ....... day of ....... in the year ....... before me, the undersigned, a Notary Public in and
55.5for said state, personally appeared
55.6
.....
55.7personally known to me or proved to me on the basis of satisfactory evidence to be the
55.8individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged
55.9to me that he/she/they executed the same in his/her/their capacity(ies), and that by
55.10his/her/their signature(s) on the instrument, the individual(s), or the person on behalf of
55.11which the individual(s) acted, executed the instrument.
55.12
.....
55.13
Notary Signature
55.14
.....
55.15
Notary Printed Name
55.16
Notary Public, State of .....
55.17
Qualified in the County of .....
55.18
My commission expires .....
55.19Official seal:
55.20    Subd. 2. Perfected security interest avoids cancellation prevents surrender. The
55.21department may not cancel a certificate of title if, under this chapter, a security interest has
55.22been perfected on the manufactured home. If a security interest has been perfected, the
55.23department shall must notify the owner and that each secured party that the must release or
55.24satisfy the security interest prior to proceeding with surrender of the manufacturer's certificate
55.25of origin or certificate of title and a description of the security interest have been surrendered
55.26to the department and that the department will not cancel the certificate of title until the
55.27security interest is satisfied for cancellation. Permanent attachment to real property or the
55.28recording of an affidavit of affixation does not extinguish an otherwise valid security interest
55.29in or tax lien on the manufactured home, unless the requirements of section 168A.141,
55.30subdivisions 1, 1a, and 2, including the release of any security interest, have been satisfied.
55.31    Subd. 3. Notice of security interest avoids surrender. The manufacturer's certificate
55.32of origin or the certificate of title need not be surrendered to the department under subdivision
55.331 When a perfected security interest exists, or will exist, on the manufactured home at the
55.34time the manufactured home is affixed to real property, if and the owner has not satisfied
55.35the requirements of section 168A.141, subdivision 1, the owner of the manufactured home
56.1files, or its secured party, may record a notice with the county recorder, or with the registrar
56.2of titles, if the land is registered, stating that the manufactured home located on the property
56.3is encumbered by a perfected security interest and is not an improvement to real property.
56.4The notice must state the name and address of the secured party as set forth on the certificate
56.5of title, the legal description of the real property, and the name and address of the record
56.6fee owner of the real property on which the manufactured home is affixed. When the security
56.7interest is released or satisfied, the secured party shall must attach a copy of the release or
56.8satisfaction to a notice executed by the secured party containing the county recorder or
56.9registrar of titles document number of the notice of security interest. The notice of release
56.10or satisfaction must be filed recorded with the county recorder, or registrar of titles, if the
56.11land is registered. Neither the notice described in this subdivision nor the security interest
56.12on the certificate of title is deemed to be an encumbrance on the real property. The notices
56.13provided for in this subdivision need not be acknowledged.

56.14    Sec. 48. Minnesota Statutes 2016, section 168A.142, is amended to read:
56.15168A.142 MANUFACTURED HOME UNAFFIXED FROM REALTY.
56.16    Subdivision 1. Certificate of title requirements. The department shall must issue an
56.17initial certificate of title or reissue a previously surrendered certificate of title for a
56.18manufactured home to an applicant if:
56.19(1) for the purpose of affixing the manufactured home to real property, the owner of the
56.20manufactured home, or a previous owner, surrendered the manufacturer's certificate of
56.21origin or certificate of title to the department as provided in section 168A.141, subdivision
56.221 or 2;
56.23(2) the applicant provides the written proof evidence specified in subdivision 2 that the
56.24applicant owns (i) the manufactured home and (ii) the real property to which the
56.25manufactured home was affixed as provided under section 273.125, subdivision 8, paragraph
56.26(b);
56.27(3) the applicant provides proof that no liens exist on the manufactured home, including
56.28liens on the real property to which it is affixed; and
56.29(4) (3) the owner of the manufactured home meets fulfills the applicable application
56.30requirements of section 168A.04,; and
56.31(4) the application is accompanied by a written statement from the county auditor or
56.32county treasurer of the county in which the manufactured home is then located and affixed,
57.1stating that all property taxes payable in the current year, as provided under section 273.125,
57.2subdivision 8
, paragraph (b), have been paid.
57.3    Subd. 2. Proof Evidence of eligibility for reissuance. (a) The proof evidence required
57.4under subdivision 1, clauses clause (2) and (3), is as follows:
57.5(1) an affidavit of severance recorded in the office of the county recorder or registrar of
57.6titles, which they shall accept, and whichever applies to the real property, of the county in
57.7which where the affidavit of affixation or notice of surrender was recorded under as required
57.8in section 168A.141, subdivision 1, and the affidavit of severance contains:
57.9(i) the name, residence address, and mailing address of the owner or owners of the
57.10manufactured home;
57.11(ii) a description of the manufactured home being severed, including the name of the
57.12manufacturer; the make, model number, model year, and dimensions, and if available, the
57.13make, model year, and manufacturer's serial number of the manufactured home; and whether
57.14the manufactured home is new or used, such information as may be available from the
57.15previously recorded affidavit of affixation or notice of surrender as required in section
57.16168A.141, subdivision 1; and
57.17(iii) a statement of any facts or information known to the person executing the affidavit
57.18that could affect the validity of the title of the manufactured home or, the existence or
57.19nonexistence of a security interest in the manufactured home or a lien on it, or, and a
57.20statement that no such facts or information are known to the person executing the affidavit;
57.21(2) as an attachment to the affidavit of severance, an opinion by an attorney admitted to
57.22practice law in this state, stating:
57.23(i) the nature of the examination of title performed prior to giving this opinion by the
57.24person signing the opinion;
57.25(ii) that the manufactured home and the real property on which it is located is not subject
57.26to, or pending completion of a refinance, purchase, or sale transaction, and will not be
57.27subject to any recorded mortgages, security interests, liens, or other encumbrances of any
57.28kind;
57.29(iii) that the person signing the opinion knows of no facts or circumstances that could
57.30affect the validity of the title of the manufactured home or the existence or nonexistence of
57.31any recorded mortgages, security interests, or other encumbrances of any kind, other than
57.32property taxes payable in the year the affidavit is signed;
58.1(iv) the person or persons owning record title to the real property to which the
58.2manufactured home has been affixed and the nature and extent of the title owned by each
58.3of these persons; and
58.4(v) that the person signing the opinion has reviewed all provisions of the affidavit of
58.5severance and certifies that they are correct and complete to the best of the knowledge of
58.6the person signing the opinion;
58.7(3) the name and address of the person or, persons designated by the applicant to file a
58.8certified copy of the original affidavit of severance with the county auditor of the county
58.9in which the real estate is located, after the affidavit has been properly recorded in the office
58.10of the county recorder or county registrar of titles, whichever applies to the real property;
58.11and
58.12(4) the signature of the person who executes the affidavit, properly executed before a
58.13person authorized to authenticate an affidavit in this state.
58.14(b) The person designated in paragraph (a), clause (3), shall must record, or arrange for
58.15the recording of, the affidavit of severance as referenced in that item, accompanied by the
58.16fees for recording and for issuing a certified copy of the affidavit, including all attachments,
58.17showing the recording date.
58.18(c) Upon obtaining the certified copy under paragraph (b), the person designated in the
58.19affidavit shall must deliver the certified copy to the county auditor of the county in which
58.20the real estate to which it was affixed is located.
58.21(d) The department is not liable for any errors, omissions, misstatements, or other
58.22deficiencies or inaccuracies in documents presented to the department under this section,
58.23so long as the documents presented appear to satisfy the requirements of this section. The
58.24department has no obligation to investigate the accuracy of statements contained in the
58.25documents.
58.26    Subd. 3. Affidavit form. The affidavit of severance must be in substantially the following
58.27form and must contain the following information.
58.28MANUFACTURED HOME AFFIDAVIT OF SEVERANCE
58.29PURSUANT TO MINNESOTA STATUTES, SECTION 168A.142
58.30Homeowner, being duly sworn, on his or her oath, states as follows:
58.311. Homeowner owns the manufactured home ("home") described as follows:
58.32
.....
59.1
59.2
New/Used
Year
Manufacturer's
Name
Model Name or
Model No.
Manufacturer's
Serial No.
Length/Width
59.32. A copy of the previously surrendered manufacturer's certificate of origin or certificate of
59.4title is attached (if available).
59.53. A copy of the notice of surrender issued from the Minnesota Department of Public Safety
59.6Driver and Vehicle Services is attached (if available).
59.74. The home is or will be located at the following "Property Address":
59.8
.....
59.9
Street or Route .....
City .....
County .....
State .....
Zip Code .....
59.105. The legal description of the property address ("land") is as follows or as attached:
59.11
.....
59.12
.....
59.13
.....
59.146. The homeowner does not know of any facts or information that could affect the validity
59.15of title of the manufactured home, except:
59.16
.....
59.17
.....
59.187. The homeowner does not know of any such security interest in the manufactured home
59.19which has not been satisfied or released.
59.208. A copy of an opinion by an attorney admitted to practice law in Minnesota is attached,
59.21which provides for the required title evidence as set forth in Minnesota Statutes, section
59.22168A.142, subdivision 2, clause (2), items (i) to (v).
59.239. A copy of the written statement from the county auditor or county treasurer of the county
59.24in which the manufactured home is then located, stating that all property taxes payable in
59.25the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph
59.26(b)), have been paid, or are not applicable, is attached.
59.2710. The name and address of the person designated by the homeowner to record the original
59.28affidavit of surrender with the county recorder or registrar of titles of the county in which
59.29the real estate is located is:
59.30
Name .....
59.31
Street Address .....
59.32
City, State, Zip Code .....
59.33
Phone .....
60.1
E-mail .....
60.2IN WITNESS WHEREOF, homeowner(s) have executed this affidavit on this ....... day of
60.3......., 20...
60.4
.....
.....
60.5
Homeowner Signature
Address
60.6
.....
.....
60.7
Printed Name
City, State
60.8
.....
60.9
Homeowner Signature (if applicable)
60.10
.....
60.11
Printed Name
60.12This instrument was drafted by, and when recorded return to:
60.13
.....
60.14
.....
60.15Subscribed and sworn to before me this ....... day of ......., .......
60.16
......................................................................
60.17
Signature of Notary Public or Other Official
60.18Notary Stamp or Seal

60.19    Sec. 49. [168A.143] MANUFACTURED HOMES; OWNERSHIP AT ISSUE.
60.20    Subdivision 1. Requirements for certificate issuance or reissuance. When an applicant
60.21is unable to obtain from or locate previous owners no longer holding an interest in the
60.22manufactured home based on a certificate of title, or to locate, obtain, or produce the original
60.23certificate of origin or certificate of title for a manufactured home, and there is no evidence
60.24of a surrendered certificate of title or manufacturer's statement of origin as provided in
60.25section 168A.141, subdivision 1, which has not otherwise been unaffixed or is being
60.26unaffixed as provided in section 168A.142, the department must issue or reissue a certificate
60.27of title to a manufactured home when the applicant submits:
60.28(1) the application, pursuant to the requirements of section 168A.04, in a form prescribed
60.29by the department;
60.30(2) an affidavit that:
60.31(i) identifies the name of the manufacturer and dimensions, and if available, the make,
60.32model number, model year, and manufacturer's serial number of the manufactured home;
60.33and
61.1(ii) certifies the applicant is the owner of the manufactured home, has physical possession
61.2of the manufactured home, knows of no facts or circumstances that materially affect the
61.3validity of the title of the manufactured home as represented in the application, and provides
61.4copies of such ownership documents, so far as the documents exist, including by way of
61.5example:
61.6(A) bill of sale;
61.7(B) financing, replevin, or foreclosure documents;
61.8(C) appraisal;
61.9(D) insurance certification;
61.10(E) personal property tax bill;
61.11(F) landlord certification;
61.12(G) affidavit of survivorship or estate documents;
61.13(H) divorce decree; or
61.14(I) court order;
61.15(3) an affidavit by an attorney admitted to practice law in this state stating:
61.16(i) the attorney has performed a search of the Minnesota Department of Public Safety
61.17Driver and Vehicles Services records within 120 days of the date of application to obtain a
61.18certificate of origin or certificate of title on behalf of the applicant, but was unable to
61.19determine the names or locations of one or more owners or prior owners of the manufactured
61.20home;
61.21(ii) if applicable, the attorney was unable to successfully contact one or more owners,
61.22or prior owners, after providing written notice 45 days prior to the registered and last known
61.23owner by certified mail at the address shown on Driver and Vehicles Services records, or
61.24if the last known address if different from Driver and Vehicles Services records, then also
61.25the last known address as known to the applicant;
61.26(iii) if the attorney is unable to contact one or more owners, or previous owners, by
61.27sending a letter by certified mail, then the attorney must present to the department, as an
61.28attachment to its affidavit, the returned letter as evidence of the attempted contact, or the
61.29acknowledgment of receipt of the letter, together with an affidavit of nonresponse; and
62.1(iv) the attorney knows of no facts or circumstances that materially affect the validity
62.2of the title of the manufactured home as represented in the application, other than property
62.3taxes payable in the year the affidavit is signed; and
62.4(4) payment for required current year taxes and fees as prescribed by the department.
62.5    Subd. 2. Satisfaction of manufactured home security lien; release. A security interest
62.6perfected under this chapter may be canceled seven years from the perfection date for a
62.7manufactured home, upon the request of the owner of the manufactured home, if the owner
62.8has paid the lien in full or the lien has been abandoned and the owner is unable to locate
62.9the lienholder to obtain a lien release. The owner must send a letter to the lienholder by
62.10certified mail, return receipt requested, stating the reason for the release and requesting a
62.11lien release. If the owner is unable to obtain a lien release by sending a letter by certified
62.12mail, then the owner must present to the department the returned letter as evidence of the
62.13attempted contact, or the acknowledgment of receipt of the letter, together with a copy of
62.14the letter and an owner affidavit of nonresponse.
62.15    Subd. 3. Suspension or revocation of certificate. (a) Pursuant to section 168A.23, the
62.16department may revoke a previously issued certificate of title issued under this section.
62.17(b) The department is not liable for any errors, omissions, misstatements, or other
62.18deficiencies or inaccuracies in documents submitted to the department under this section,
62.19provided the documents submitted appear to satisfy the requirements of this section. The
62.20department is not required to investigate the accuracy of statements contained in submitted
62.21documents.

62.22    Sec. 50. Minnesota Statutes 2016, section 169.011, is amended by adding a subdivision
62.23to read:
62.24    Subd. 1a. All-electric vehicle. (a) "All-electric vehicle" means an electric vehicle that
62.25is solely able to be powered by an electric motor drawing current from rechargeable storage
62.26batteries, fuel cells, or other portable sources of electrical current.
62.27(b) All-electric vehicle excludes a plug-in hybrid electric vehicle.
62.28EFFECTIVE DATE.This section is effective the day following final enactment, and
62.29applies to a registration period starting on or after January 1, 2018.

62.30    Sec. 51. Minnesota Statutes 2016, section 169.011, subdivision 34, is amended to read:
62.31    Subd. 34. Head Start bus. (a) "Head Start bus" means a motor vehicle used to transport
62.32children and parents to or from a Head Start facility, or to or from Head Start-related
63.1activities, by the Head Start grantee, or by someone under an agreement with the Head Start
63.2grantee. A Head Start bus does not include a motor vehicle transporting children or parents
63.3to or from a Head Start facility for which parents or guardians receive direct compensation
63.4from a Head Start grantee, a motor coach operating under charter carrier authority, or a
63.5transit bus providing services as defined in section 174.22, subdivision 7. A Head Start bus
63.6may be a type A, B, C, or D bus or type III vehicle, as described in subdivision 71.
63.7(b) A Head Start bus manufactured after December 31, 1994, must meet the same
63.8standards as a type A, B, C, or D school bus, except that a Head Start bus is not required to
63.9be equipped with the warning signals required for a school bus under section 169.442,
63.10subdivision 1
. A Head Start bus that is not equipped as a school bus must be painted colors
63.11other than national school bus yellow.

63.12    Sec. 52. Minnesota Statutes 2016, section 169.14, is amended by adding a subdivision to
63.13read:
63.14    Subd. 5h. St. Louis County Road 128. Notwithstanding any provision to the contrary
63.15in this section, the speed limit on St. Louis County Road 128 in Eagles Nest Township
63.16between marked Trunk Highway 169 and County Road 989 is 40 miles per hour. The county
63.17engineer must erect appropriate signs displaying the 40 miles per hour speed limit.
63.18EFFECTIVE DATE.This section is effective the day following final enactment. The
63.19new speed limit is effective when the required signs are erected.

63.20    Sec. 53. Minnesota Statutes 2016, section 169.18, subdivision 5, is amended to read:
63.21    Subd. 5. Driving left of roadway center; exception. (a) No vehicle shall be driven to
63.22the left side of the center of the roadway in overtaking and passing another vehicle proceeding
63.23in the same direction unless such left side is clearly visible and is free of oncoming traffic
63.24for a sufficient distance ahead to permit such overtaking and passing to be completely made
63.25without interfering with the safe operation of any vehicle approaching from the opposite
63.26direction or any vehicle overtaken. In every event the overtaking vehicle must return to the
63.27right-hand side of the roadway before coming within 100 feet of any vehicle approaching
63.28from the opposite direction.
63.29    (b) Except on a one-way roadway, no vehicle shall, in overtaking and passing another
63.30vehicle or at any other time, be driven to the left half of the roadway under the following
63.31conditions:
64.1    (1) when approaching the crest of a grade or upon a curve in the highway where the
64.2driver's view along the highway is obstructed within a distance of 700 feet;
64.3    (2) when approaching within 100 feet of any underpass or tunnel, railroad grade crossing,
64.4intersection within a city, or intersection outside of a city if the presence of the intersection
64.5is marked by warning signs; or
64.6    (3) where official signs are in place prohibiting passing, or a distinctive centerline is
64.7marked, which distinctive line also so prohibits passing, as declared in the Manual on
64.8Uniform Traffic Control Devices adopted by the commissioner.
64.9    (c) Notwithstanding paragraph (b), clause (3), a motor vehicle may be driven to the left
64.10side of the roadway to safely overtake a bicycle under the following circumstances:
64.11    (1) the bicycle is proceeding in the same direction as the motor vehicle;
64.12    (2) the driver of the motor vehicle either (i) provides a safe clearance distance, in no
64.13case less than the greater of three feet or one-half the width of the motor vehicle, or (ii)
64.14completely enters the left lane of the highway;
64.15    (3) the operator of the bicycle is not (i) making a left turn, or (ii) signaling that the bicycle
64.16operator intends to make a left turn; and
64.17    (4) the driver of the motor vehicle complies with all other applicable requirements under
64.18this section.
64.19EFFECTIVE DATE.This section is effective the day following final enactment.

64.20    Sec. 54. Minnesota Statutes 2016, section 169.18, subdivision 7, is amended to read:
64.21    Subd. 7. Laned highway. When any roadway has been divided into two or more clearly
64.22marked lanes for traffic, the following rules, in addition to all others consistent herewith,
64.23shall apply:
64.24(a) A vehicle shall be driven as nearly as practicable entirely within a single lane and
64.25shall not be moved from such lane until the driver has first ascertained that such movement
64.26can be made with safety.
64.27(b) Upon a roadway which is not a one-way roadway and which is divided into three
64.28lanes, a vehicle shall not be driven in the center lane except when overtaking and passing
64.29another vehicle where the roadway is clearly visible and such center lane is clear of traffic
64.30within a safe distance, or in preparation for a left turn or where such center lane is at the
64.31time allocated exclusively to traffic moving in the direction the vehicle is proceeding, and
65.1is signposted to give notice of such allocation. The left lane of a three-lane roadway which
65.2is not a one-way roadway shall not be used for overtaking and passing another vehicle.
65.3(c) Official signs may be erected directing slow-moving traffic to use a designated lane
65.4or allocating specified lanes to traffic moving in the same direction, and drivers of vehicles
65.5shall obey the directions of every such sign.
65.6(d) Whenever a bicycle lane has been established on a roadway, any person operating
65.7a motor vehicle on such roadway shall not drive in the bicycle lane except to perform parking
65.8maneuvers in order to park where parking is permitted, to enter or leave the highway, or to
65.9prepare for a turn as provided in section 169.19, subdivision 1, or to stop a school bus for
65.10the purpose of receiving or discharging any person provided the school bus is equipped and
65.11identified as provided in sections 169.441 and 169.442, subdivision 1, and the flashing red
65.12signals are activated and stop-signal arm is extended.

65.13    Sec. 55. Minnesota Statutes 2016, section 169.345, subdivision 1, is amended to read:
65.14    Subdivision 1. Scope of privilege. (a) A vehicle described in section 168.021, subdivision
65.151, paragraph (a), that prominently displays the certificate authorized by this section or that
65.16bears the disability plate or plates issued under section 168.021 may be parked by or solely
65.17for the benefit of a physically disabled person:
65.18(1) in a designated parking space for disabled persons, as provided in section 169.346;
65.19(2) in a metered parking space without obligation to pay the meter fee and without time
65.20restrictions unless time restrictions are separately posted on official signs; and
65.21(3) without time restrictions in a nonmetered space where parking is otherwise allowed
65.22for passenger vehicles but restricted to a maximum period of time and that does not
65.23specifically prohibit the exercise of disabled parking privileges in that space.
65.24A person may park the vehicle for a physically disabled person in a parking space described
65.25in clause (1) or (2) only when actually transporting the physically disabled person for the
65.26sole benefit of that person and when the parking space is within a reasonable distance from
65.27the drop-off point.
65.28(b) For purposes of this subdivision, a certificate is prominently displayed if it is displayed
65.29so that it may be viewed from the front and rear of the motor vehicle by hanging it from the
65.30rearview mirror attached to the front windshield of the motor vehicle or, in the case of a
65.31motorcycle or a motorized bicycle, is secured to the vehicle. If there is no rearview mirror
65.32or if the certificate holder's disability precludes placing the certificate on the mirror, the
66.1certificate must be displayed on the dashboard of the vehicle. No part of the certificate may
66.2be obscured.
66.3(c) Notwithstanding paragraph (a), clauses (1), (2), and (3), this section does not permit
66.4parking in areas prohibited by sections 169.32 and 169.34, in designated no parking spaces,
66.5or in parking spaces reserved for specified purposes or vehicles. A local governmental unit
66.6may, by ordinance, prohibit parking on any street or highway to create a fire lane, or to
66.7accommodate heavy traffic during morning and afternoon rush hours and these ordinances
66.8also apply to physically disabled persons.
66.9EFFECTIVE DATE.This section is effective January 1, 2018.

66.10    Sec. 56. Minnesota Statutes 2016, section 169.345, subdivision 3, is amended to read:
66.11    Subd. 3. Identifying certificate. (a) The commissioner shall issue (1) immediately, a
66.12permit valid for 30 days if the person is eligible for the certificate issued under this section
66.13and (2) an identifying certificate for a vehicle described in section 168.021, subdivision 1,
66.14paragraph (a), when a physically disabled applicant submits proof of physical disability
66.15under subdivision 2a. The commissioner shall design separate certificates for persons with
66.16permanent and temporary disabilities that can be readily distinguished from each other from
66.17outside a vehicle at a distance of 25 feet or, in the case of a motorcycle or a motorized
66.18bicycle, can be readily secured to the motorcycle or motorized bicycle. An applicant may
66.19be issued up to two certificates if the applicant has not been issued disability plates under
66.20section 168.021.
66.21(b) The operator of a vehicle displaying a certificate has the parking privileges provided
66.22in subdivision 1 only while the vehicle is actually parked while transporting a physically
66.23disabled person.
66.24(c) The commissioner shall cancel all certificates issued to an applicant who fails to
66.25comply with the requirements of this subdivision.
66.26EFFECTIVE DATE.This section is effective January 1, 2018.

66.27    Sec. 57. Minnesota Statutes 2016, section 169.442, subdivision 5, is amended to read:
66.28    Subd. 5. White strobe lamps on certain buses transporting children. (a)
66.29Notwithstanding section 169.55, subdivision 1, or 169.57, subdivision 3, paragraph (b), or
66.30other law to the contrary, a school bus that is subject to and complies with the equipment
66.31requirements of subdivision 1 and section 169.441, subdivision 1, or a Head Start bus that
67.1is not a type III vehicle defined in section 169.011, subdivision 71, may be equipped with
67.2a flashing strobe lamp. The lamp may be used only as provided in this subdivision.
67.3(b) The lamp must be permanently mounted on the longitudinal centerline of the bus
67.4roof not less than two feet forward of the rear roof edge.
67.5(c) The strobe lamp may be lighted only when atmospheric conditions or terrain restrict
67.6the visibility of school bus lamps and signals or Head Start bus lamps and signals so as to
67.7require use of the bright strobe lamp to alert motorists to the presence of the school bus or
67.8Head Start bus. A strobe lamp may not be lighted unless the school bus or Head Start bus
67.9is actually being used as a school bus or Head Start bus.

67.10    Sec. 58. Minnesota Statutes 2016, section 169.443, subdivision 2, is amended to read:
67.11    Subd. 2. Use of stop-signal arm. (a) The stop-signal arm system of a school bus must
67.12be used in conjunction with the flashing red signals only when the school bus is stopped on
67.13a street or highway to load or unload school children.
67.14(b) A local authority, including the governing body of an Indian tribe, may by ordinance
67.15require that a school bus activate the stop-signal arm system and flashing red signals while
67.16stopped to unload school children at a location other than a location on a street or highway.
67.17The ordinance must designate each location where the requirement is imposed. The
67.18requirement is effective only if the local authority has erected signs at or near the location
67.19to provide adequate notice that other vehicles are required to obey section 169.444,
67.20subdivision 1
, when those signals are activated.
67.21(c) A school bus driver is prohibited from loading or unloading passengers in a designated
67.22right-turn lane or in a lane immediately adjacent to a designated right-turn lane unless:
67.23(1) a school bus stop designated by the district transportation safety director is located
67.24in the right-turn lane;
67.25(2) the driver stops the bus at the extreme right side of the right-turn lane; and
67.26(3) the driver activates the prewarning flashing amber signals, flashing red signals, and
67.27stop-signal arm, unless the school board or its designee, based on safety considerations,
67.28provides written direction to the driver not to do so.

68.1    Sec. 59. Minnesota Statutes 2016, section 169.444, subdivision 2, is amended to read:
68.2    Subd. 2. Violations by drivers; penalties. (a) A person who fails to stop a vehicle or
68.3to keep it stopped, as required in subdivision 1, or who violates subdivision 1a, is guilty of
68.4a misdemeanor punishable by a fine of not less than $300 $500.
68.5(b) A person is guilty of a gross misdemeanor if the person fails to stop a motor vehicle
68.6or to keep it stopped, as required in subdivision 1, or who violates subdivision 1a, and
68.7commits either or both of the following acts:
68.8(1) passes or attempts to pass the school bus in a motor vehicle on the right-hand,
68.9passenger-door side of the bus; or
68.10(2) passes or attempts to pass the school bus in a motor vehicle when a school child is
68.11outside of and on the street or highway used by the school bus or on the adjacent sidewalk.
68.12EFFECTIVE DATE.This section is effective August 1, 2017, and applies to violations
68.13committed on and after that date.

68.14    Sec. 60. Minnesota Statutes 2016, section 169.449, subdivision 1, is amended to read:
68.15    Subdivision 1. Rules. The commissioner of public safety shall adopt rules governing
68.16the operation of school buses used for transportation of school children, when owned or
68.17operated by a school or privately owned and operated under a contract with a school, and
68.18these rules must be made a part of that contract by reference. Each school, its officers and
68.19employees, and each person employed under the contract is subject to these rules.

68.20    Sec. 61. Minnesota Statutes 2016, section 169.4501, subdivision 1, is amended to read:
68.21    Subdivision 1. National standards adopted. Except as provided in sections 169.4502
68.22and 169.4503, the construction, design, equipment, and color of types A, B, C, D school
68.23buses and multifunction school activity buses used for the transportation of school children
68.24shall meet the requirements of the "bus body and chassis specifications" in the 2010 most
68.25recent edition of the "National School Transportation Specifications and Procedures" adopted
68.26by the National Congress on School Transportation. Except as provided in section 169.4504,
68.27the construction, design, and equipment of types A, B, C, D school buses and multifunction
68.28school activity buses used for the transportation of students with disabilities also shall meet
68.29the requirements of the "specially equipped school bus specifications" in the 2010 National
68.30School Transportation Specifications and Procedures. The "bus body and chassis
68.31specifications" and "specially equipped school bus specifications" sections of the 2010 most
68.32recent edition of the "National School Transportation Specifications and Procedures,"
69.1adopted by the Fifteenth National Congress on School Transportation, are incorporated by
69.2reference in this chapter.

69.3    Sec. 62. Minnesota Statutes 2016, section 169.4501, subdivision 2, is amended to read:
69.4    Subd. 2. Applicability. (a) The standards adopted in this section and sections 169.4502
69.5and 169.4503, govern the construction, design, equipment, and color of school buses used
69.6for the transportation of school children, when owned or leased and operated by a school
69.7or privately owned or leased and operated under a contract with a school. Each school, its
69.8officers and employees, and each person employed under the contract is subject to these
69.9standards.
69.10    (b) The standards apply to school buses manufactured after December 31, 2012 August
69.111 of the year following a year in which a revised edition of the National School Transportation
69.12Specifications and Procedures is adopted. Buses complying with the standards when
69.13manufactured need not comply with standards established later except as specifically provided
69.14for by law.
69.15    (c) A school bus manufactured on or before December 31, 2012, the date provided by
69.16paragraph (b) must conform to the Minnesota standards in effect on the date the vehicle
69.17was manufactured except as specifically provided for in law.
69.18    (d) A new bus body may be remounted on a used chassis provided that the remounted
69.19vehicle meets state and federal standards for new buses which are current at the time of the
69.20remounting. Permission must be obtained from the commissioner of public safety before
69.21the remounting is done. A used bus body may not be remounted on a new or used chassis.

69.22    Sec. 63. Minnesota Statutes 2016, section 169.4503, subdivision 4, is amended to read:
69.23    Subd. 4. Certification. Upon request, a body manufacturer, or school bus dealer, or
69.24certified Minnesota commercial vehicle inspector who is also an employee of an organization
69.25purchasing a school bus shall must provide preliminary certification to the Department of
69.26Public Safety that the product meets Minnesota standards. Final certification will be granted
69.27within 30 days upon reinspection by the Department of Public Safety.

69.28    Sec. 64. Minnesota Statutes 2016, section 169.4503, subdivision 7, is amended to read:
69.29    Subd. 7. Floor construction. The metal floor shall must be covered with plywood. The
69.30plywood shall must be at least 19/32 five-ply nominal five-eighths inches thick, and must
69.31equal or exceed properties of exterior-type softwood plywood, grade C-D, as specified in
69.32product the standard PSI-I83 issued by the United States Department of Commerce. All of
70.1the plywood's exposed edges must be sealed. Type A-I buses must be equipped with nominal
70.2one-half inch thick plywood or an equivalent material that meets the requirements of this
70.3subdivision. Equivalent material may be used to replace plywood, provided it has insulation
70.4R value, deterioration, sound abatement, and moisture resistance properties that are equal
70.5to or exceed the properties of the plywood it is replacing. The floor shall must be level from
70.6front to back, and side to side, except in wheel housing, toe board, and driver's seat platform
70.7areas.

70.8    Sec. 65. Minnesota Statutes 2016, section 169.4503, subdivision 14, is amended to read:
70.9    Subd. 14. Insulation. (a) Thermal insulation is required. It shall be fire-resistant, UL
70.10approved, with minimum R-value of 5.5. Insulation shall be installed so as to prevent
70.11sagging.
70.12(b) Floor insulation is required. It shall be five-ply nominal five-eighths-inch-thick
70.13plywood, and shall equal or exceed properties of the exterior-type softwood plywood, C-D
70.14Grade, as specified in the standard issued by United States Department of Commerce. All
70.15exposed edges on plywood shall be sealed. Type A-I buses shall be equipped with nominal
70.16one-half-inch-thick plywood or equivalent material meeting the above requirements.
70.17Equivalent material may be used to replace plywood, provided it has an equal or greater
70.18insulation R value, deterioration, sound abatement, and moisture resistance properties.

70.19    Sec. 66. Minnesota Statutes 2016, section 169.4503, subdivision 23, is amended to read:
70.20    Subd. 23. Windows. (a) Windshield, entrance, and rear emergency exit doors must be
70.21of approved safety glass. Laminated or tempered glass (AS-2 or AS-3) is permitted in all
70.22other windows. All glass shall be federally approved and marked as provided in section
70.23169.74 . The windshield may be of uniform tint throughout or may have a horizontal gradient
70.24band starting slightly above the line of vision and gradually decreasing in light transmission
70.25to 20 percent or less at the top of the windshield.
70.26(b) The use of tinted glass, as approved by section 169.71, is permitted on side windows
70.27and rear windows except for the entrance door, the first window behind the service door,
70.28and the window to the left of the driver. The window to the left of the driver, and the upper
70.29service door windows, and the window immediately behind the entrance door must be
70.30thermal glass. Regardless of a bus's date of manufacture, the window immediately behind
70.31the entrance door does not need to be made of thermal glass. The window to the left of the
70.32driver for type A buses need not be thermal glass.

71.1    Sec. 67. Minnesota Statutes 2016, section 169.4503, subdivision 30, is amended to read:
71.2    Subd. 30. Video or mobile surveillance systems. Camera heads for video or mobile
71.3surveillance may be mounted in the driver compartment area, midbus, or on a rear interior
71.4bulkhead in the student passenger area. For buses manufactured or retrofitted with a
71.5surveillance system after December 31, 2012, cameras mounted midbus must be parallel
71.6to a seat back, must not have any sharp edges, must not extend outward more than three
71.73-1/2 inches, and must be located within 24 inches of the top of the side window of the bus.

71.8    Sec. 68. Minnesota Statutes 2016, section 169.64, subdivision 8, is amended to read:
71.9    Subd. 8. Strobe lamp. (a) Notwithstanding sections 169.55, subdivision 1; 169.57,
71.10subdivision 3
, paragraph (b); or any other law to the contrary, a vehicle may be equipped
71.11with a 360-degree flashing strobe lamp that emits a white light with a flash rate of 60 to
71.12120 flashes a minute, and the lamp may be used as provided in this subdivision, if the vehicle
71.13is:
71.14(1) a school bus that is subject to and complies with the equipment requirements of
71.15sections 169.441, subdivision 1, and 169.442, subdivision 1, or a Head Start bus that is not
71.16a type III vehicle as defined in section 169.011, subdivision 71. The lamp shall be
71.17permanently mounted on the longitudinal centerline of the bus roof not less than two feet
71.18nor more than seven feet forward of the rear roof edge. It shall must operate from a separate
71.19switch containing an indicator lamp to show when the strobe lamp is in use. The strobe
71.20lamp may be lighted only when atmospheric conditions or terrain restrict the visibility of
71.21school bus lamps and signals or Head Start bus lamps and signals so as to require use of
71.22the bright strobe lamp to alert motorists to the presence of the school bus or Head Start bus.
71.23A strobe lamp may not be lighted unless the school bus or Head Start bus is actually being
71.24used as a school bus or Head Start bus; or
71.25(2) a road maintenance vehicle owned or under contract to the Department of
71.26Transportation or a road authority of a county, home rule or statutory city, or town, but the
71.27strobe lamp may only be operated while the vehicle is actually engaged in snow removal
71.28during daylight hours.
71.29(b) Notwithstanding sections 169.55, subdivision 1; 169.57, subdivision 3, paragraph
71.30(b); or any other law to the contrary, a vehicle may be equipped with a 360-degree flashing
71.31strobe lamp that emits an amber light with a flash rate of 60 to 120 flashes a minute, and
71.32the lamp may be used as provided in this subdivision, if the vehicle is a rural mail carrier
71.33vehicle, provided that the strobe lamp is mounted at the highest practicable point on the
72.1vehicle. The strobe lamp may only be operated while the vehicle is actually engaged during
72.2daylight hours in the delivery of mail to residents on a rural mail route.
72.3(c) A strobe lamp authorized by this section shall be of a double flash type certified to
72.4the commissioner of public safety by the manufacturer as being weatherproof and having
72.5a minimum effective light output of 200 candelas as measured by the Blondel-Rey formula.

72.6    Sec. 69. Minnesota Statutes 2016, section 169.80, subdivision 1, is amended to read:
72.7    Subdivision 1. Limitations; misdemeanor. (a) It is a misdemeanor for a person to drive
72.8or move, or for the owner to cause or knowingly permit to be driven or moved, on a highway
72.9a vehicle or vehicles of a size or weight exceeding the limitations stated in sections 169.80
72.10to 169.88, or otherwise in violation of sections 169.80 to 169.88, other than section 169.81,
72.11subdivision 5a
, and the maximum size and weight of vehicles as prescribed in sections
72.12169.80 to 169.88 shall be lawful throughout this state, and local authorities shall have no
72.13power or authority to alter these limitations except as express authority may be granted in
72.14sections 169.80 to 169.88.
72.15(b) When all the axles of a vehicle or combination of vehicles are weighed separately
72.16the sum of the weights of the axles so weighed shall be evidence of the total gross weight
72.17of the vehicle or combination of vehicles so weighed.
72.18(c) When each of the axles of any group that contains two or more consecutive axles of
72.19a vehicle or combination of vehicles have been weighed separately the sum of the weights
72.20of the axles so weighed shall be evidence of the total gross weight on the group of axles so
72.21weighed.
72.22(d) When, in any group of three or more consecutive axles of a vehicle or combination
72.23of vehicles any axles have been weighed separately and two or more axles consecutive to
72.24each other in the group have been weighed together, the sum of the weights of the axles
72.25weighed separately and the axles weighed together shall be evidence of the total gross weight
72.26of the group of axles so weighed.
72.27(e) The provisions of sections 169.80 to 169.88 governing size, weight, and load shall
72.28do not apply to a fire apparatus, or to a vehicle operated under the terms of a special permit
72.29issued as provided by law.
72.30EFFECTIVE DATE.This section is effective the day following final enactment.

73.1    Sec. 70. Minnesota Statutes 2016, section 169.829, is amended by adding a subdivision
73.2to read:
73.3    Subd. 4. Certain emergency vehicles. The provisions of sections 169.80 to 169.88
73.4governing size, weight, and load do not apply to a fire apparatus, a law enforcement special
73.5response vehicle, or a licensed land emergency ambulance service vehicle.
73.6EFFECTIVE DATE.This section is effective the day following final enactment.

73.7    Sec. 71. [169.8295] WEIGHT LIMITS; VEHICLES TRANSPORTING MILK.
73.8    Subdivision 1. Weight limits increase. (a) The weight limitations under sections 169.823
73.9to 169.829 are increased by ten percent for a single-unit vehicle transporting fluid milk from
73.10the point of production to:
73.11(1) another point of production for additional loading; or
73.12(2) the point of first processing.
73.13(b) Notwithstanding sections 169.824, subdivision 1, paragraph (d); 169.826, subdivision
73.143; or other law to the contrary, a permit is not required to operate a vehicle under this section.
73.15(c) The seasonal weight increases under section 169.826, subdivision 1, do not apply to
73.16a vehicle operated under this section.
73.17    Subd. 2. Requirements; restrictions. A vehicle operated under this section:
73.18(1) is subject to seasonal load restrictions under section 169.87, except as otherwise
73.19provided under section 169.87, subdivision 4;
73.20(2) is subject to bridge load limits posted under section 169.84; and
73.21(3) must not be operated with a load that exceeds the tire manufacturer's recommended
73.22load, the manufacturer's gross vehicle weight rating as affixed to the vehicle, or other
73.23certification of gross vehicle weight rating under Code of Federal Regulations, title 49,
73.24sections 567.4 to 567.7.
73.25EFFECTIVE DATE.This section is effective the day following final enactment.

73.26    Sec. 72. Minnesota Statutes 2016, section 169.865, subdivision 3, is amended to read:
73.27    Subd. 3. Requirements; restrictions. (a) A vehicle or combination of vehicles operating
73.28under this section:
73.29    (1) is subject to axle weight limitations under section 169.824, subdivision 1;
74.1    (2) is subject to seasonal load restrictions under section 169.87;
74.2    (3) is subject to bridge load limits posted under section 169.84;
74.3    (4) may only be operated on paved streets and highways other than interstate highways;
74.4    (5) may not be operated with loads that exceed the manufacturer's gross vehicle weight
74.5rating as affixed to the vehicle, or other certification of gross vehicle weight rating complying
74.6with Code of Federal Regulations, title 49, sections 567.4 to 567.7;
74.7    (6) must be issued a permit from each road authority having jurisdiction over a road on
74.8which the vehicle is operated, if required;
74.9    (7) must comply with the requirements of section 169.851, subdivision 4; and
74.10    (8) must have brakes on all wheels.
74.11    (b) The percentage allowances for exceeding gross weights if transporting unfinished
74.12forest products under section 168.013, subdivision 3, paragraph (b), or for the first haul of
74.13unprocessed or raw farm products or unfinished forest products under section 168.013,
74.14subdivision 3
, paragraph (d), clause (3), do not apply to a vehicle or combination of vehicles
74.15operated under this section.
74.16(c) Notwithstanding paragraph (a), clause (4), a vehicle or combination of vehicles
74.17hauling fluid milk under a permit issued by the commissioner of transportation may also
74.18operate on interstate highways as provided under United States Code, title 23, section 127.

74.19    Sec. 73. [169.869] ROAD CONSTRUCTION MATERIALS SPECIAL PERMIT.
74.20    Subdivision 1. Definition. For purposes of this section, "road construction materials"
74.21means street or highway construction materials, including but not limited to aggregate
74.22material as defined in section 298.75, subdivision 1, paragraph (a), hot mix asphalt, plastic
74.23concrete, cementitious materials, concrete admixtures, asphalt cement, and recycled road
74.24materials.
74.25    Subd. 2. Six-axle vehicles. (a) The commissioner of transportation may issue an annual
74.26permit authorizing a vehicle or combination of vehicles with a total of six or more axles to
74.27haul road construction materials and be operated with a gross vehicle weight of up to:
74.28(1) 90,000 pounds; and
74.29(2) 99,000 pounds during the period set by the commissioner under section 169.826,
74.30subdivision 1.
75.1(b) The fee for a permit issued under this subdivision is $300, or a proportional amount
75.2as provided in section 169.86, subdivision 5.
75.3    Subd. 3. Seven-axle vehicles. (a) The commissioner of transportation may issue an
75.4annual permit authorizing a vehicle or combination of vehicles with a total of seven or more
75.5axles to haul road construction materials and be operated with a gross vehicle weight of up
75.6to:
75.7(1) 97,000 pounds; and
75.8(2) 99,000 pounds during the period set by the commissioner under section 169.826,
75.9subdivision 1.
75.10(b) The fee for a permit issued under this subdivision is $500, or a proportional amount
75.11as provided in section 169.86, subdivision 5.
75.12    Subd. 4. Authority; restrictions. (a) A permit issued by the commissioner under this
75.13section is valid for operation on highways regardless of jurisdiction, subject to paragraph
75.14(b).
75.15(b) A vehicle or combination of vehicles operating under this section:
75.16(1) may only be operated on paved or unpaved streets and highways, other than interstate
75.17highways;
75.18(2) must comply with the requirements and restrictions in section 169.865, subdivision
75.193, paragraph (a), clauses (1) to (3), (5), (7), and (8); and
75.20(3) must be operated in compliance with truck route requirements and vehicle weight
75.21restrictions, as established under section 169.87, subdivision 1, by a local road authority or
75.22the commissioner.
75.23    Subd. 5. Revenues. Revenue from the permits issued by the commissioner under this
75.24section must be deposited in the town bridge account. Revenue deposited under this
75.25subdivision is available to inspect and post weight limits for town bridges.
75.26    Subd. 6. Expiration date. Upon request of the permit applicant, the expiration date for
75.27a permit issued under this section must be the same as the expiration date of the permitted
75.28vehicle's registration.
75.29    Subd. 7. Permit information. The commissioner must make information available to
75.30local road authorities on an Internet Web site that identifies permit issuances under this
75.31section and the counties in which a vehicle with a permit is intended to be operated.
76.1    Subd. 8. Local preferred routes. A local road authority may identify local preferred
76.2routes for operating a vehicle on local streets and highways under a permit issued in this
76.3section. A holder of a permit issued in this section and any person seeking to apply for a
76.4permit are encouraged to:
76.5(1) upon request of a local road authority, provide comment on identification of preferred
76.6routes; and
76.7(2) make reasonable efforts to operate a vehicle on the preferred routes when operating
76.8under the permit.
76.9EFFECTIVE DATE.This section is effective January 1, 2018.

76.10    Sec. 74. Minnesota Statutes 2016, section 169.871, subdivision 1, is amended to read:
76.11    Subdivision 1. Civil liability. (a) The owner or lessee of a vehicle that is operated with
76.12a gross weight in excess of a weight limit imposed under sections 169.823 to 169.829
76.13169.8295, 169.84 to 169.851, and 169.87 or a shipper who ships or tenders goods for
76.14shipment in a single truck or combination vehicle that exceeds a weight limit imposed under
76.15sections 169.823 to 169.829 169.8295, 169.84 to 169.851, and 169.87 is liable for a civil
76.16penalty as follows:
76.17(1) if the total gross excess weight is not more than 1,000 pounds, one cent per pound
76.18for each pound in excess of the legal limit;
76.19(2) if the total gross excess weight is more than 1,000 pounds but not more than 3,000
76.20pounds, $10 plus five cents per pound for each pound in excess of 1,000 pounds;
76.21(3) if the total gross excess weight is more than 3,000 pounds but not more than 5,000
76.22pounds, $110 plus ten cents per pound for each pound in excess of 3,000 pounds;
76.23(4) if the total gross excess weight is more than 5,000 pounds but not more than 7,000
76.24pounds, $310 plus 15 cents per pound for each pound in excess of 5,000 pounds;
76.25(5) if the total gross excess weight is more than 7,000 pounds, $610 plus 20 cents per
76.26pound for each pound in excess of 7,000 pounds.
76.27(b) Notwithstanding any other law to the contrary, if a person found guilty of a violation
76.28of a weight limit imposed under this section or sections 169.823 to 169.829 169.8295,
76.29169.84 to 169.851, or 169.87 is also found by the court to have knowingly and
76.30contemporaneously attempted to evade a fixed weigh station or to otherwise avoid weighing
76.31by means of stationary scales under section 169.85 or other law, the court shall must impose
76.32a penalty of twice the amount otherwise authorized under paragraph (a).
77.1(c) Any penalty imposed upon a defendant under this subdivision shall must not exceed
77.2the penalty prescribed by this subdivision. Any fine paid by the defendant in a criminal
77.3overweight action that arose from the same overweight violation shall be is applied toward
77.4payment of the civil penalty under this subdivision. A peace officer or Department of Public
77.5Safety employee described in section 299D.06 who cites a driver for a violation of the
77.6weight limitations established by sections 169.81 to 169.851 and 169.87 shall must give
77.7written notice to the driver that the driver or another may also be liable for the civil penalties
77.8provided herein in the same or separate proceedings.
77.9(d) A penalty imposed upon the owner or lessee of a vehicle that is based on violations
77.10identified by the use of shippers' weight records under section 169.872 must not exceed an
77.11aggregate of $10,000.

77.12    Sec. 75. Minnesota Statutes 2016, section 171.02, subdivision 2b, is amended to read:
77.13    Subd. 2b. Exception for type III vehicle drivers. (a) Notwithstanding subdivision 2,
77.14the holder of a class A, B, C, or D driver's license, without a school bus endorsement, may
77.15operate a type III vehicle described in section 169.011, subdivision 71, paragraph (h), under
77.16the conditions in paragraphs (b) through (o) this subdivision.
77.17    (b) The operator is an employee of the entity that owns, leases, or contracts for the school
77.18bus.
77.19    (c) The operator's employer has adopted and implemented a policy that provides for
77.20annual training and certification of the operator in:
77.21    (1) safe operation of a type III vehicle;
77.22    (2) understanding student behavior, including issues relating to students with disabilities;
77.23    (3) encouraging orderly conduct of students on the bus and handling incidents of
77.24misconduct appropriately;
77.25    (4) knowing and understanding relevant laws, rules of the road, and local school bus
77.26safety policies;
77.27    (5) handling emergency situations;
77.28    (6) proper use of seat belts and child safety restraints;
77.29    (7) performance of pretrip vehicle inspections;
77.30    (8) safe loading and unloading of students, including, but not limited to:
78.1    (i) utilizing a safe location for loading and unloading students at the curb, on the nontraffic
78.2side of the roadway, or at off-street loading areas, driveways, yards, and other areas to
78.3enable the student to avoid hazardous conditions;
78.4    (ii) refraining from loading and unloading students in a vehicular traffic lane, on the
78.5shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;
78.6    (iii) avoiding a loading or unloading location that would require a pupil to cross a road,
78.7or ensuring that the driver or an aide personally escort the pupil across the road if it is not
78.8reasonably feasible to avoid such a location;
78.9    (iv) placing the type III vehicle in "park" during loading and unloading; and
78.10    (v) escorting a pupil across the road under item (iii) only after the motor is stopped, the
78.11ignition key is removed, the brakes are set, and the vehicle is otherwise rendered immobile;
78.12and
78.13    (9) compliance with paragraph (k), concerning reporting certain convictions to the
78.14employer within ten days of the date of conviction.
78.15    (d) A background check or background investigation of the operator has been conducted
78.16that meets the requirements under section 122A.18, subdivision 8, or 123B.03 for school
78.17district employees; section 144.057 or chapter 245C for day care employees; or section
78.18171.321, subdivision 3 , for all other persons operating a type III vehicle under this
78.19subdivision.
78.20    (e) Operators shall submit to a physical examination as required by section 171.321,
78.21subdivision 2
.
78.22    (f) The operator's employer requires preemployment drug testing of applicants for
78.23operator positions. Current operators must comply with the employer's policy under section
78.24181.951, subdivisions 2 , 4, and 5. Notwithstanding any law to the contrary, the operator's
78.25employer may use a Breathalyzer or similar device to fulfill random alcohol testing
78.26requirements.
78.27    (g) The operator's driver's license is verified annually by the entity that owns, leases, or
78.28contracts for the type III vehicle as required under section 171.321, subdivision 5.
78.29    (h) A person who sustains a conviction, as defined under section 609.02, of violating
78.30section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked under
78.31sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of violating
78.32or whose driver's license is revoked under a similar statute or ordinance of another state, is
78.33precluded from operating a type III vehicle for five years from the date of conviction.
79.1    (i) A person who has ever been convicted of a disqualifying offense as defined in section
79.2171.3215, subdivision 1 , paragraph (c), may not operate a type III vehicle under this
79.3subdivision.
79.4    (j) A person who sustains a conviction, as defined under section 609.02, of a moving
79.5offense in violation of chapter 169 within three years of the first of three other moving
79.6offenses is precluded from operating a type III vehicle for one year from the date of the last
79.7conviction.
79.8    (k) An operator who sustains a conviction as described in paragraph (h), (i), or (j) while
79.9employed by the entity that owns, leases, or contracts for the school bus, shall report the
79.10conviction to the employer within ten days of the date of the conviction.
79.11    (l) An operator of a type III vehicle whose driver's license is suspended, revoked,
79.12canceled, or disqualified by Minnesota, another state, or another jurisdiction must notify
79.13the operator's employer in writing of the suspension, revocation, cancellation, lost privilege,
79.14or disqualification. The operator must notify the operator's employer before the end of the
79.15business day immediately following the day the operator received notice of the suspension,
79.16revocation, cancellation, lost privilege, or disqualification.
79.17    (m) Students riding the type III vehicle must have training required under section
79.18123B.90, subdivision 2 .
79.19    (m) (n) Documentation of meeting the requirements listed in this subdivision must be
79.20maintained under separate file at the business location for each type III vehicle operator.
79.21The business manager, school board, governing body of a nonpublic school, or any other
79.22entity that owns, leases, or contracts for the type III vehicle operating under this subdivision
79.23is responsible for maintaining these files for inspection.
79.24    (n) (o) The type III vehicle must bear a current certificate of inspection issued under
79.25section 169.451.
79.26    (o) (p) An employee of a school or of a school district, who is not employed for the sole
79.27purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).

79.28    Sec. 76. Minnesota Statutes 2016, section 171.06, subdivision 2a, is amended to read:
79.29    Subd. 2a. Two-wheeled vehicle endorsement fee. (a) The fee for any duplicate driver's
79.30license obtained for the purpose of adding a two-wheeled vehicle endorsement is increased
79.31by $18.50 for each first such duplicate license and $13 for each renewal thereof. The
79.32additional fee must be paid into the state treasury and credited as follows:
80.1(1) $11 of the additional fee for each first duplicate license, and $7 of the additional fee
80.2for each renewal, must be credited to the motorcycle safety fund, which is hereby created;
80.3provided that ten percent of fee receipts in excess of $750,000 in a fiscal year must be
80.4credited to the general fund.
80.5(2) The remainder of the additional fee must be credited to the general fund.
80.6(b) All application forms prepared by the commissioner for two-wheeled vehicle
80.7endorsements must clearly state the amount of the total fee that is dedicated to the motorcycle
80.8safety fund.

80.9    Sec. 77. Minnesota Statutes 2016, section 171.061, subdivision 3, is amended to read:
80.10    Subd. 3. Application. An applicant may file an application with an agent. The agent
80.11shall receive and accept applications in accordance with the laws and rules of the Department
80.12of Public Safety for a driver's license, restricted license, duplicate license, instruction permit,
80.13Minnesota identification card, or motorized bicycle operator's permit. Application records
80.14must be maintained at the office of the agent in a manner that complies with sections 13.05,
80.15subdivision 5, and 13.055. As an alternative to paper copy storage, an agent may retain
80.16records and documents in a secure electronic medium that complies with the security
80.17requirements under the United States Federal Bureau of Investigation, Criminal Justice
80.18Information Services Division, Policy 5.4 or any successor policy, provided 60 days have
80.19elapsed since the transaction and subject to standards established by the commissioner. The
80.20agent is responsible for all costs associated with the conversion to electronic records and
80.21maintenance of the electronic storage medium, including the destruction of existing paper
80.22records after conversion to the electronic format. All queries and responses in the secure
80.23electronic medium, and all actions in which data are entered, updated, accessed, or shared
80.24or disseminated by the agent must be contained in a data audit trail. Data contained in the
80.25audit trail are public to the extent the data are not otherwise classified under this section.

80.26    Sec. 78. Minnesota Statutes 2016, section 171.12, subdivision 6, is amended to read:
80.27    Subd. 6. Certain convictions not recorded. (a) Except as provided in paragraph (c),
80.28the department shall must not keep on the record of a driver any conviction for a violation
80.29of a speed limit of 55 miles per hour unless the violation consisted of a speed greater than
80.30ten miles per hour in excess of the speed limit.
80.31(b) Except as provided in paragraph (c), the department shall must not keep on the record
80.32of a driver any conviction for a violation of a speed limit of 60 miles per hour unless the
80.33violation consisted of a speed greater than:
81.1(1) ten miles per hour in excess of the speed limit, for any violation occurring on or after
81.2August 1, 2012, and before August 1, 2014; or
81.3(2) five miles per hour in excess of the speed limit, for any violation occurring on or
81.4after August 1, 2014.
81.5(c) This subdivision does not apply to (1) a violation that occurs in a commercial motor
81.6vehicle, or (2) a violation committed by a holder of a class A, B, or C commercial driver's
81.7license or commercial driver learner's permit, without regard to whether the violation was
81.8committed in a commercial motor vehicle or another vehicle.

81.9    Sec. 79. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to
81.10read:
81.11    Subd. 7a. Abandoned and discontinued. "Abandoned and discontinued" means an
81.12outdoor advertising device that ceases to display advertising copy for a minimum of one
81.13year and is not otherwise being actively marketed to display advertising copy.

81.14    Sec. 80. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to
81.15read:
81.16    Subd. 17a. Conforming. "Conforming" means an outdoor advertising device that
81.17complies with the requirements of this chapter.

81.18    Sec. 81. Minnesota Statutes 2016, section 173.02, subdivision 18, is amended to read:
81.19    Subd. 18. Commercial or industrial activity. (a) "Commercial or industrial activity"
81.20for the purposes of unzoned commercial or industrial areas means an activity generally
81.21recognized as commercial or industrial by zoning authorities in this state, except that.
81.22(b) None of the following activities shall be considered commercial or industrial:
81.23(1) outdoor advertising devices.;
81.24(2) agricultural, forestry, ranching, grazing, farming and related activities, including,
81.25but not limited to, temporary wayside fresh produce stands.;
81.26(3) transient or temporary activities.;
81.27(4) activities not visible from the main-traveled way.;
81.28(5) activities more than 660 feet from the nearest edge of the right-of-way.;
81.29(6) activities conducted in a building principally used as a residence.;
82.1(7) railroad tracks and minor sidings.;
82.2(8) advertising located on vehicles or tractor trailers;
82.3(9) commercial establishments or businesses that have ceased to exist or operate; or
82.4(10) a business created to install new outdoor advertising devices.

82.5    Sec. 82. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to
82.6read:
82.7    Subd. 21a. Nonconforming. "Nonconforming" means an outdoor advertising device
82.8that was lawfully erected and has been maintained lawfully but does not comply with the
82.9requirements of this chapter. A nonconforming sign is one that remains in substantially the
82.10same condition it was on the effective date of this chapter.

82.11    Sec. 83. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to
82.12read:
82.13    Subd. 21b. Off-premise "Off-premise" means an outdoor advertising device that
82.14advertises or pertains to any business, product, person, activity, event, or service that is not
82.15primarily conducted, sold, manufactured, offered, or located on the property where the sign
82.16is located.

82.17    Sec. 84. Minnesota Statutes 2016, section 173.02, subdivision 23, is amended to read:
82.18    Subd. 23. Scenic area. "Scenic area" means an area within which control and regulation
82.19of the erection and maintenance of advertising devices may be exercised to the extent herein
82.20provided and such areas shall include only those established as such by the commissioner
82.21of transportation. Scenic area includes a scenic byway under United States Code, title 23,
82.22section 162.

82.23    Sec. 85. Minnesota Statutes 2016, section 173.02, is amended by adding a subdivision to
82.24read:
82.25    Subd. 23a. Scenic byways. "Scenic byways" means roads that recognize outstanding
82.26scenic, cultural, historic, natural, recreational, and archaeological qualities and landscapes
82.27pursuant to United States Code, title 23, section 162.

83.1    Sec. 86. Minnesota Statutes 2016, section 173.06, subdivision 1, is amended to read:
83.2    Subdivision 1. Authority. The commissioner of transportation shall must adopt and
83.3may modify, amend, or repeal rules governing the issuance of permits or renewals thereof
83.4for the erection and maintenance of legal nonconforming advertising devices within scenic
83.5areas; provided that the commissioner shall not adopt, modify, amend, or repeal any rule
83.6that will impair any agreement with between the state and the federal government under
83.7this chapter. The commissioner of transportation may limit the application of any rule
83.8adopted by the commissioner to exclude or include in whole or in part, specified areas within
83.9the scenic area based upon use, nature of the surrounding community, or such other factors
83.10as may make separate classification or rule necessary or desirable.

83.11    Sec. 87. Minnesota Statutes 2016, section 173.07, subdivision 1, is amended to read:
83.12    Subdivision 1. Forms; content. Application for permits or renewals thereof for the
83.13placement and maintenance of advertising devices within scenic areas shall must be on
83.14forms prescribed by the commissioner and shall contain such information as the commissioner
83.15may require. No advertising device shall be placed without the consent of the owner or
83.16occupant of the land, and adequate proof of such consent shall be submitted to the
83.17commissioner at the time application is made for such permits or renewals. A permit is
83.18required to access state right-of-way to maintain an advertising device.

83.19    Sec. 88. Minnesota Statutes 2016, section 173.08, is amended by adding a subdivision to
83.20read:
83.21    Subd. 3. Seed sign exemption. Crop varietal and seed corn signs adjacent to interstate
83.22and primary highways may be erected if the device:
83.23(1) is located on demonstration plats;
83.24(2) is located on private property;
83.25(3) does not violate section 160.27 or 160.2715; and
83.26(4) does not reference an off-site address where the product may be sold.

83.27    Sec. 89. Minnesota Statutes 2016, section 173.08, is amended by adding a subdivision to
83.28read:
83.29    Subd. 4. Violations; removal. The Department of Transportation may remove signs
83.30that violate this section using the removal procedures under section 173.13, subdivision 11.

84.1    Sec. 90. Minnesota Statutes 2016, section 173.13, subdivision 11, is amended to read:
84.2    Subd. 11. Removal of advertising device for noncompliance. Advertising devices
84.3erected or maintained after June 8, 1971, not complying with Laws 1971, chapter 883, and
84.4not otherwise by Laws 1971, chapter 883, permitted to stand this chapter may be removed
84.5by the commissioner upon 60 days prior written notice by certified mail to the owner thereof
84.6of the advertising device and to the owner of the real property on which such the advertising
84.7device is located, provided that. No notice shall be is required to be given to the owner of
84.8an advertising device whose name is not stated upon the advertising device or the structure
84.9on which it is displayed, unless the name of such the owner is otherwise reasonably known
84.10to the commissioner. The owner of the removed device is liable to the state for the costs of
84.11removal. The period of such notice shall be is computed from the date of mailing. to both
84.12the owner of the advertising device and the owner of the real property where the device is
84.13located. The department must store a removed outdoor advertising device for a minimum
84.14of 30 days prior to disposal. If the outdoor advertising device is not retrieved by the owner
84.15within 30 days of removal, the department may dispose of the outdoor advertising device.
84.16The state is not liable for trespass actions or sign costs for outdoor advertising devices
84.17removed under this subdivision if proper notice has been served.

84.18    Sec. 91. [173.155] CHANGEABLE ELECTRONIC VARIABLE MESSAGE SIGNS.
84.19    Subdivision 1. Definition. For the purposes of this section, "changeable electronic
84.20variable message sign" or "CEVMS" means an outdoor advertising device that contains
84.21light-emitting diodes or other technology to display copy visible during the day and during
84.22the night, with the copy changes initiated electronically.
84.23    Subd. 2. Prohibition. Intermittent, animated, scrolling, full-motion video elements, or
84.24moving lights are prohibited on outdoor advertising devices, including CEVMS.
84.25    Subd. 3. Exceptions. (a) Notwithstanding subdivision 2, a CEVMS is permissible if:
84.26(1) the message does not change more frequently than once every six seconds;
84.27(2) the transition between messages or copy does not exceed two seconds in duration;
84.28(3) the message brightness does not exceed 0.3 foot-candles over ambient light, as
84.29measured using a foot candle meter from the following distances:
84.30(i) for signs with a nominal face size of 12 feet by 25 feet, from 150 feet;
84.31(ii) for signs with a nominal face size of ten feet, six inches, by 36 feet, from 200 feet;
84.32and
85.1(iii) for signs with a nominal face size of 14 feet by 48 feet, from 250 feet; and
85.2(4) the sign must not cause beams or rays of light to be directed at the traveled way if
85.3the light is of such intensity or brilliance as to cause glare that impairs the vision of the
85.4driver of a motor vehicle, or interfere with any driver's operation of a motor vehicle.
85.5(b) The brightness measurement under paragraph (a), clause (3), must be conducted at
85.6least 30 minutes after sunset or at least 30 minutes before sunrise. Each CEVMS must have
85.7automatic dimming technology that adjusts the device's brightness levels in response to
85.8changes in ambient light.

85.9    Sec. 92. Minnesota Statutes 2016, section 173.16, is amended by adding a subdivision to
85.10read:
85.11    Subd. 6. Stationary structure. Advertising devices must:
85.12(1) be stationary;
85.13(2) be immobile;
85.14(3) not have wheels; and
85.15(4) be incapable of relocation without a permit.

85.16    Sec. 93. Minnesota Statutes 2016, section 173.16, is amended by adding a subdivision to
85.17read:
85.18    Subd. 7. Permanent business. (a) A business that is located in an unzoned commercial
85.19or industrial area must be in existence for at least three months before a permit may be
85.20issued. An outdoor advertising device erected prior to receiving a permit is subject to
85.21removal.
85.22(b) A commercial establishment may demonstrate evidence of its existence by having
85.23a Web site, a telephone number that is answered or has an answering machine identifying
85.24the business, a storefront, pictorial evidence of the business, a building permit, or a lease.

85.25    Sec. 94. [173.265] OUTDOOR ADVERTISING DEVICES; REMOVAL;
85.26MAINTENANCE.
85.27    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
85.28the meanings given them.
85.29(b) "Destroyed" means that more than 50 percent of a nonconforming outdoor advertising
85.30device's upright supports are physically damaged to a degree that normal repair practices
86.1would require replacement of broken wooden supports or replacement of broken, bent, or
86.2twisted supports for metal sign structures.
86.3(c) "Reasonable repair and maintenance" means customary maintenance and change of
86.4a sign's copy or message, and includes replacement of existing light fixtures with energy
86.5efficient fixtures or installation of other energy efficiency improvements. Reasonable repair
86.6and maintenance does not include:
86.7(1) the addition of illumination;
86.8(2) repair, reinstallation, erection, or maintenance for outdoor advertising devices that
86.9are destroyed, as defined under paragraph (b);
86.10(3) enlarging the nonconforming device;
86.11(4) changing the device from a wood structure to a steel or concrete structure; or
86.12(5) any change that would terminate nonconforming status.
86.13(d) "Substantial change" means any action that does not constitute reasonable repair and
86.14maintenance.
86.15    Subd. 2. Application. This section applies only to outdoor advertising devices subject
86.16to state and federal regulation under United States Code, title 23, section 131, and any
86.17regulations adopted under that law.
86.18    Subd. 3. Removal. The department may remove a destroyed, abandoned, or discontinued
86.19outdoor advertising device, subject to the limitations provided under this chapter.
86.20    Subd. 4. Reasonable repair and maintenance. (a) The owner of an outdoor advertising
86.21device may perform reasonable repair and maintenance on any device, provided the device
86.22is not destroyed.
86.23(b) Any action not constituting reasonable repair and maintenance will subject the outdoor
86.24advertising device to immediate removal under subdivision 3.
86.25    Subd. 5. Substantial change. Substantial changes to outdoor advertising devices are
86.26prohibited. A substantial change to a nonconforming outdoor advertising device will subject
86.27the sign to immediate removal under subdivision 3.

86.28    Sec. 95. Minnesota Statutes 2016, section 174.03, subdivision 1a, is amended to read:
86.29    Subd. 1a. Revision of statewide multimodal transportation plan. (a) The commissioner
86.30shall must revise the statewide multimodal transportation plan by January 15, 2013 2022,
86.31and by January 15 of every four five years thereafter. Before final adoption of a revised
87.1plan, the commissioner shall must hold a hearing to receive public comment on the
87.2preliminary draft of the revised plan.
87.3(b) Each revised statewide multimodal transportation plan must:
87.4(1) incorporate the goals of the state transportation system in section 174.01;
87.5(2) establish objectives, policies, and strategies for achieving those goals; and
87.6(3) identify performance targets for measuring progress and achievement of transportation
87.7system goals, objectives, or policies.

87.8    Sec. 96. Minnesota Statutes 2016, section 174.03, subdivision 1c, is amended to read:
87.9    Subd. 1c. Statewide highway 20-year capital investment plan. By January 15, 2013,
87.10and in conjunction with Within one year of each future revision of the statewide multimodal
87.11transportation plan under subdivision 1a, the commissioner shall must prepare a 20-year
87.12statewide highway capital investment plan that:
87.13(1) incorporates performance measures and targets for assessing progress and achievement
87.14of the state's transportation goals, objectives, and policies identified in this chapter for the
87.15state trunk highway system, and those goals, objectives, and policies established in the
87.16statewide multimodal transportation plan. Performance targets must be based on objectively
87.17verifiable measures, and address, at a minimum, preservation and maintenance of the
87.18structural condition of state highway bridges and pavements, safety, and mobility;
87.19(2) summarizes trends and impacts for each performance target over the past five years;
87.20(3) summarizes the amount and analyzes the impact of the department's capital
87.21investments and priorities over the past five years on each performance target, including a
87.22comparison of prior plan projected costs with actual costs;
87.23(4) identifies the investments required to meet the established performance targets over
87.24the next 20-year period;
87.25(5) projects available state and federal funding over the 20-year period, including any
87.26unique, competitive, time-limited, or focused funding opportunities;
87.27(6) identifies strategies to ensure the most efficient use of existing transportation
87.28infrastructure, and to maximize the performance benefits of projected available funding;
87.29(7) establishes investment priorities for projected funding, including a schedule of major
87.30projects or improvement programs for the 20-year period together with projected costs and
87.31impact on performance targets; and
88.1(8) identifies those performance targets identified under clause (1) not expected to meet
88.2the target outcome over the 20-year period together with alternative strategies that could
88.3be implemented to meet the targets.

88.4    Sec. 97. [174.38] ACTIVE TRANSPORTATION PROGRAM.
88.5    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
88.6the meanings given them.
88.7(b) "Active transportation" means bicycling, pedestrian activities, and other forms of
88.8nonmotorized transportation.
88.9(c) "Commissioner" means the commissioner of transportation.
88.10    Subd. 2. Program established. Subject to available funds, the commissioner must
88.11establish a program to support active transportation.
88.12    Subd. 3. Active transportation account. An active transportation account is established
88.13in the special revenue fund. The account consists of funds provided by law and any other
88.14money donated, allotted, transferred, or otherwise provided to the account. Money in the
88.15account must be expended only on a project that receives financial assistance under this
88.16section.
88.17    Subd. 4. Program administration. (a) The commissioner must establish active
88.18transportation program requirements, including:
88.19(1) assistance eligibility, subject to the requirements under subdivision 5;
88.20(2) a solicitation and application process that minimizes the burden on applicants; and
88.21(3) procedures to award and pay financial assistance.
88.22(b) The commissioner must annually conduct a solicitation for active transportation
88.23projects under the program.
88.24(c) The commissioner must make reasonable efforts to publicize each application
88.25solicitation among all eligible recipients. The commissioner must assist applicants to create
88.26and submit applications, with an emphasis on providing assistance in communities that are
88.27historically and currently underrepresented in local or regional planning, including
88.28communities of color, low-income households, people with disabilities, and people with
88.29limited English proficiency.
88.30(d) The commissioner may provide grants or other financial assistance for a project.
89.1(e) The commissioner is prohibited from expending more than one percent of available
89.2funds in a fiscal year under this section on program administration.
89.3    Subd. 5. Eligibility. Eligible recipients of financial assistance under this section are:
89.4(1) a political subdivision; and
89.5(2) a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code, as
89.6amended.
89.7    Subd. 6. Use of funds. The commissioner must determine permissible uses of financial
89.8assistance under this section, which are limited to:
89.9(1) construction and maintenance of bicycle, trail, and pedestrian infrastructure, including
89.10but not limited to safe routes to school infrastructure and bicycle facilities and centers; and
89.11(2) noninfrastructure programming, including activities as specified in section 174.40,
89.12subdivision 7a, paragraph (b).
89.13    Subd. 7. Project evaluation and selection. (a) The commissioner must establish a
89.14project evaluation and selection process that is competitive, criteria-based, and objective.
89.15(b) The process must include criteria and prioritization of projects based on:
89.16(1) the project's inclusion in a municipal or regional nonmotorized transportation system
89.17plan;
89.18(2) the extent to which policies or practices of the political subdivision encourage and
89.19promote complete streets planning, design, and construction;
89.20(3) the extent to which the project supports connections between communities and to
89.21key destinations within a community;
89.22(4) identified barriers or deficiencies in the nonmotorized transportation system;
89.23(5) identified safety or health benefits;
89.24(6) geographic equity in project benefits, with an emphasis on communities that are
89.25historically and currently underrepresented in local or regional planning; and
89.26(7) ability of a grantee to maintain the active transportation infrastructure following
89.27project completion.

90.1    Sec. 98. Minnesota Statutes 2016, section 174.50, subdivision 5, is amended to read:
90.2    Subd. 5. Certification and disbursal for project of political subdivision. Before
90.3disbursement of an appropriation made from the fund to the commissioner of transportation
90.4for grants to subdivisions of the state, the commissioner shall must certify that:
90.5(1) that the project for which the grant is made has been reviewed as provided in
90.6subdivision 4;
90.7(2) that the project conforms to the program authorized by the appropriation law and
90.8rules adopted by the Department of Transportation consistent therewith; and
90.9(3) that (2) the financing of any estimated cost of the project in excess of the amount of
90.10the grant is assured by the appropriation of the proceeds of bonds or other funds of the
90.11subdivision, or by a grant from an agency of the federal government, within the amount of
90.12funds then appropriated to that agency and allocated by it to projects within the state, and
90.13by an irrevocable undertaking, in a resolution of the governing body of the subdivision, to
90.14use all funds so made available exclusively for the project, and to pay any additional amount
90.15by which the cost exceeds the estimate through appropriation to the construction fund of
90.16additional funds or the proceeds of additional bonds to be issued by the subdivision.

90.17    Sec. 99. Minnesota Statutes 2016, section 174.50, subdivision 6b, is amended to read:
90.18    Subd. 6b. Bridge costs in smaller cities. (a) The commissioner may make grants from
90.19the state transportation fund to a home rule or statutory city with a population of 5,000 or
90.20less for design, engineering, and construction of bridges on city streets.
90.21(b) Grants under this subdivision are subject to the procedures and criteria established
90.22under subdivisions 5, 6, and 7.
90.23(c) (b) Grants may be used for:
90.24(1) 100 percent of the design and engineering costs that are in excess of $10,000;
90.25(2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
90.26(3) 100 percent of the bridge construction work costs.

90.27    Sec. 100. Minnesota Statutes 2016, section 174.50, subdivision 6c, is amended to read:
90.28    Subd. 6c. Fracture-critical bridges. (a) The commissioner may make a grant to any
90.29political subdivision for replacement or rehabilitation of a fracture-critical bridge. To be
90.30eligible for a grant under this subdivision, the project must produce a bridge structure:
91.1(1) that is no longer classified as fracture critical, by having alternate load paths; and
91.2(2) whose failure of a main component will not result in the collapse of the bridge.
91.3(b) A grant under this subdivision is subject to the procedures and criteria established
91.4under subdivisions 5 and 6.

91.5    Sec. 101. Minnesota Statutes 2016, section 174.50, subdivision 7, is amended to read:
91.6    Subd. 7. Bridge grant program; rulemaking. (a) The commissioner of transportation
91.7shall develop rules, procedures for application for grants, conditions of grant administration,
91.8standards, and criteria as provided under subdivision 6, including bridge specifications, in
91.9cooperation with road authorities of political subdivisions, for use in the administration of
91.10funds appropriated to the commissioner and for the administration of grants to subdivisions.
91.11Grants under this section are subject to the procedures and criteria established in this
91.12subdivision and in subdivisions 5 and 6.
91.13(b) The maximum use of standardized bridges is encouraged. Regardless of the size of
91.14the existing bridge, a bridge or replacement bridge is eligible for assistance from the state
91.15transportation fund if a hydrological survey indicates that the bridge or replacement bridge
91.16must be ten feet or more in length.
91.17(c) As part of the standards or rules, the commissioner shall, in consultation with local
91.18road authorities, establish a minimum distance between any two bridges that cross over the
91.19same river, stream, or waterway, so that only one of the bridges is eligible for a grant under
91.20this section. As appropriate, the commissioner may establish exceptions from the minimum
91.21distance requirement or procedures for obtaining a variance.
91.22(d) Political subdivisions may use grants made under this section to construct or
91.23reconstruct bridges, including but not limited to:
91.24(1) matching federal aid grants to construct or reconstruct key bridges;
91.25(2) paying the costs to abandon an existing bridge that is deficient and in need of
91.26replacement but where no replacement will be made; and
91.27(3) paying the costs to construct a road or street to facilitate the abandonment of an
91.28existing bridge if the commissioner determines that the bridge is deficient, and that
91.29construction of the road or street is more economical than replacement of the existing bridge.
91.30(e) Funds appropriated to the commissioner from the Minnesota state transportation
91.31fund shall be segregated from the highway tax user distribution fund and other funds created
91.32by article XIV of the Minnesota Constitution.
92.1(f) The commissioner is prohibited from awarding a grant under this section for a local
92.2bridge replacement or rehabilitation project with a total project cost estimate of $7,000,000
92.3or more.
92.4(g) Notwithstanding paragraph (f), the commissioner may award a grant under this
92.5section for a portion of a local bridge replacement or rehabilitation project with a total
92.6project cost estimate of $7,000,000 or more if every other local bridge replacement or
92.7rehabilitation project on the commissioner's priority list with a total project cost estimate
92.8of less than $7,000,000 has been fully funded.
92.9EFFECTIVE DATE.This section is effective the day following final enactment.

92.10    Sec. 102. [174.53] DEPARTMENT OF TRANSPORTATION EFFICIENCIES.
92.11(a) Beginning in fiscal years 2018 and 2019, the commissioner of transportation must
92.12implement efficiencies equal to at least 15 percent of the appropriations made annually to
92.13the commissioner from the trunk highway fund that are above base appropriations for fiscal
92.14years 2018 and 2019.
92.15(b) The efficiency savings resulting from the requirements in paragraph (a) are for the
92.16construction, maintenance, or rehabilitation of trunk highways, including roads and bridges.

92.17    Sec. 103. Minnesota Statutes 2016, section 174.56, is amended by adding a subdivision
92.18to read:
92.19    Subd. 4. Availability of information. The commissioner must maintain an Internet Web
92.20site that displays information for each major highway project. At a minimum, the information
92.21must include the report contents identified in subdivision 2.

92.22    Sec. 104. [174.57] SNOW AND ICE CONTROL; APPROPRIATION.
92.23(a) In a fiscal year in which the commissioner expends more than 110 percent of the
92.24established biennial expenditure level for snow and ice management, the commissioner may
92.25use an additional amount for this purpose that does not exceed 50 percent of the
92.26unappropriated balance in the trunk highway fund. The amount identified by the
92.27commissioner under this paragraph is appropriated from the trunk highway fund to the
92.28commissioner for snow and ice management purposes.
92.29(b) Upon using the appropriation authority in this section, the commissioner must notify
92.30the commissioner of management and budget and the chairs, ranking minority members,
92.31and staff of the house of representatives and senate committees having jurisdiction over
93.1transportation finance. The notification must at a minimum identify the established biennial
93.2expenditure level for snow and ice management and the amount appropriated under this
93.3section.
93.4(c) In each budget submission to the legislature under section 16A.11, the commissioner
93.5must include:
93.6(1) the proposed biennial expenditure level for snow and ice management for the next
93.7budget biennium; and
93.8(2) the total amount expended or estimated to be expended under the appropriation in
93.9this section for the budget biennium that is ending.
93.10(d) For purposes of this section, "snow and ice management purposes" means the
93.11following items relating to keeping the roads clear of snow and ice: overtime pay for existing
93.12employees; fuel; maintenance and repair; and anti-icing treatments, salt, sand, or other
93.13similar substances. "Snow and ice management purposes" does not include the hiring of
93.14additional employees or purchasing additional vehicles or equipment.

93.15    Sec. 105. Minnesota Statutes 2016, section 174.93, is amended to read:
93.16174.93 GUIDEWAY METROPOLITAN AREA TRANSIT INVESTMENT.
93.17    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
93.18the meanings given:.
93.19(1) (b) "Busway" means a form of bus service provided to the public on a regular and
93.20ongoing basis, including arterial or highway bus rapid transit, that (1) compared to other
93.21regular route bus service, provides reduced travel time and uses distinct bus stop or station
93.22amenities, and (2) does not primarily or substantially operate within separated rights-of-way;
93.23(c) "Commissioner" means the commissioner of transportation;.
93.24(2) (d) "Guideway" means a form of transportation service provided to the public on a
93.25regular and ongoing basis, that primarily or substantially operates on exclusive or controlled
93.26within separated rights-of-way or operates on rails in whole or in part, and includes:
93.27(1) each line for intercity passenger rail, commuter rail, light rail transit, and streetcars,
93.28and;
93.29(2) as applicable, each line for dedicated bus service, which may include arterial or
93.30highway bus rapid transit; and, limited stop bus service, and express bus service; and
94.1(3) any intermodal facility serving two or more lines identified in clauses (1) and (2).
94.2Guideway does not include a busway.
94.3(3) (e) "Local unit of government" means a county, statutory or home rule charter city,
94.4town, or other political subdivision including, but not limited to, a regional railroad authority
94.5or joint powers board.
94.6(f) "Separated rights-of-way" includes exclusive, dedicated, or primary use of a
94.7right-of-way by the public transportation service. Separated rights-of-way does not include
94.8a shoulder, dynamic shoulder lane, or priced lane under section 160.93.
94.9(b) For purposes of this section, (g) "Sources of funds" includes, but is not limited to,
94.10money from federal aid, state appropriations, the Metropolitan Council, special taxing
94.11districts, local units of government, fare box recovery, and nonpublic sources.
94.12(c) For purposes of this section, (h) "Budget activity" includes, but is not limited to,
94.13environmental analysis, land acquisition, easements, design, preliminary and final
94.14engineering, acquisition of vehicles and rolling stock, track improvement and rehabilitation,
94.15and construction.
94.16    Subd. 1a. Guideway capital project requests to legislature. A state agency or local
94.17unit of government that submits a request to the legislature to obtain state funds for a
94.18guideway project shall, as part of the request, provide a summary financial plan for the
94.19project that presents the following information as reflected by the data and level of detail
94.20available in the latest phase of project development:
94.21(1) capital expenditures and funding sources for the project, including expenditures to
94.22date and total projected or estimated expenditures, with a breakdown by committed and
94.23proposed sources of funds; and
94.24(2) estimated annual operations and maintenance expenditures for the project, with a
94.25breakdown by committed and proposed sources of funds.
94.26    Subd. 2. Legislative report. (a) By January October 15, 2012, and by November 15 in
94.27every odd-numbered even-numbered year thereafter, the commissioner shall council must
94.28prepare, in collaboration with the Metropolitan Council commissioner, and a report on
94.29comprehensive transit finance in the metropolitan area. The council must submit a the report
94.30electronically to the chairs and ranking minority members of the legislative committees
94.31with jurisdiction over transportation policy and finance concerning.
94.32(b) The report must be structured to provide financial information in six-month increments
94.33corresponding to state and local fiscal years, and must use consistent assumptions and
95.1methodologies. The report must comprehensively identify all funding sources and
95.2expenditures related to transit in the metropolitan area, including but not limited to:
95.3(1) sources and uses of funds from regional railroad authorities, joint powers agreements,
95.4counties, and cities;
95.5(2) expenditures for transit planning, feasibility studies, alternatives analysis, and other
95.6transit project development; and
95.7(3) expenditures for guideways, busways, regular route bus service, demand-response
95.8service, and special transportation service under section 473.386.
95.9(c) The report must include a section that summarizes the status of (1) guideways in
95.10revenue operation, and (2) guideway projects (1) (i) currently in study, planning,
95.11development, or construction; (2) (ii) identified in the transportation policy plan under
95.12section 473.146; or (3) (iii) identified in the comprehensive statewide freight and passenger
95.13rail plan under section 174.03, subdivision 1b.
95.14(b) (d) At a minimum, the guideways status section of the report must include, provide
95.15for each guideway project wholly or partially in the metropolitan area:
95.16(1) a brief description of the project, including projected ridership;
95.17(2) a summary of the overall status and current phase of the project;
95.18(3) a timeline that includes (i) project phases or milestones, including any federal
95.19approvals; (ii) expected and known dates of commencement of each phase or milestone;
95.20and (iii) expected and known dates of completion of each phase or milestone;
95.21(4) a brief progress update on specific project phases or milestones completed since the
95.22last previous submission of a report under this subdivision; and
95.23(5) a summary financial plan that identifies, as reflected by the data and level of detail
95.24available in the latest phase of project development and to the extent available:
95.25(i) capital expenditures, including expenditures to date and total projected expenditures,
95.26with a breakdown by committed and proposed sources of funds for the project;
95.27(ii) estimated annual operations and maintenance expenditures reflecting the level of
95.28detail available in the current phase of the project development, with a breakdown by
95.29committed and proposed sources of funds for the project; and
95.30(iii) if feasible, project expenditures by budget activity.
96.1(e) The report must include a section that summarizes the status of (1) busways in revenue
96.2operation, and (2) busway projects currently in study, planning, development, or construction.
96.3(f) The report must include a section that identifies the total ridership, farebox recovery
96.4ratio, and per-passenger operating subsidy for (1) each route and line in revenue operation
96.5by a transit provider, including guideways, busways, and regular route bus service; and (2)
96.6demand-response service and special transportation service. The section must provide data,
96.7as available on a per-passenger mile basis and must provide information for at least the
96.8previous three years. The section must identify performance standards for farebox recovery
96.9and identify each route and line that does not meet the standards.
96.10(c) (g) The report must also include a systemwide capacity analysis for transit operations
96.11and investment in guideway expansion and maintenance that:
96.12(1) provides a funding projection, annually over the ensuing ten years, and with a
96.13breakdown by committed and proposed sources of funds, of:
96.14(i) total capital expenditures for guideways and for busways;
96.15(ii) total operations and maintenance expenditures for guideways and for busways;
96.16(iii) total funding available for guideways and for busways, including from projected or
96.17estimated farebox recovery; and
96.18(iv) total funding available for transit service in the metropolitan area; and
96.19(2) evaluates the availability of funds and distribution of sources of funds for guideway
96.20and for busway investments.
96.21(d) (h) The projection capacity analysis under paragraph (c), clause (1), (g) must be for
96.22include all guideway and busway lines for which state public funds are reasonably expected
96.23to be expended in planning, development, construction, or revenue operation, or capital
96.24maintenance during the ensuing ten years.
96.25(e) (i) Local units of government shall must provide assistance and information in a
96.26timely manner as requested by the commissioner or council for completion of the report.
96.27EFFECTIVE DATE; APPLICATION.This section is effective January 1, 2018, and
96.28applies beginning with the report due by October 15, 2018. This section applies in the
96.29counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

97.1    Sec. 106. [219.016] HAZARDOUS MATERIALS RAIL SAFETY.
97.2    Subdivision 1. Program established. A hazardous materials rail safety program is
97.3established for the purpose of reducing the risks associated with the transportation of oil,
97.4ethanol, and other hazardous material by rail.
97.5    Subd. 2. Accounts established. Two hazardous materials rail safety program accounts
97.6are created, one in the special revenue fund and one in the bond proceeds fund. The account
97.7in the special revenue fund consists of money as provided by law, and any other money
97.8donated, allotted, transferred, or otherwise provided to the account. Money in each account
97.9is appropriated to the commissioner of transportation to make grants as provided in this
97.10section. Money in the accounts is available until spent, notwithstanding section 16A.28 or
97.1116A.642.
97.12    Subd. 3. Eligible applicant. A county, statutory or home rule charter city, or town that
97.13is responsible for establishing and maintaining public highway-rail grade crossings on rail
97.14corridors transporting crude oil and other hazardous materials may apply to the commissioner
97.15for financial assistance under this section.
97.16    Subd. 4. Eligible project. (a) A project is eligible for a grant from the account in the
97.17bond proceeds fund if the project is for the acquisition or betterment of public land, buildings,
97.18and other public improvements of a capital nature within the meaning of the Minnesota
97.19Constitution, article XI, section 5, clause (a) or (i), including capital costs associated with
97.20hazardous materials rail safety projects on public highway-rail grade crossings. Qualifying
97.21capital costs include but are not limited to upgrades to existing protection systems, the
97.22closing of crossings and necessary roadwork, and reconstruction of at-grade crossings to
97.23full grade separations.
97.24(b) A project is eligible for a grant from the account in the special revenue fund if it is
97.25for purposes described in paragraph (a) or other capital facility improvement purposes that
97.26support the purposes for which this grant program is established, including capital costs
97.27associated with planning, engineering, administration, and construction of public highway-rail
97.28grade crossing improvements on rail corridors transporting crude oil and other hazardous
97.29materials. Improvements may include upgrades to existing protection systems, the closing
97.30of crossings and necessary roadwork, and reconstruction of at-grade crossings to full grade
97.31separations.
97.32    Subd. 5. Grants; criteria for grant award. The commissioner must consider the
97.33following criteria to evaluate applications for a grant award under this section:
98.1    (1) whether the crossing was identified as a potential candidate for grade separation in
98.2the Department of Transportation's crude by rail grade crossing study (Improvements to
98.3Highway Grade Crossings and Rail Safety, December 2014);
98.4    (2) roadway traffic volumes and speeds;
98.5    (3) train volumes and speeds;
98.6    (4) adjacent land use;
98.7    (5) crash history;
98.8    (6) use of the crossing by emergency vehicles;
98.9    (7) use of the crossing by vehicles carrying hazardous materials; and
98.10    (8) local financial contributions to the project.
98.11    Subd. 6. Process. The commissioner must develop forms and procedures for soliciting
98.12and reviewing applications for grants under this section. An applicant must apply for a grant
98.13in the manner and at the times determined by the commissioner. The grant agreement must
98.14be approved by the commissioner of management and budget and is subject to cancellation
98.15under subdivision 7.
98.16    Subd. 7. Grant cancellation. If the commissioner determines that a grantee is unable
98.17to proceed with an approved project or has not expended or obligated the grant money within
98.18four years of entering into the grant agreement with the commissioner, the commissioner
98.19must cancel the grant. Money canceled under this subdivision is available for the
98.20commissioner to make other grants under this section.

98.21    Sec. 107. Minnesota Statutes 2016, section 221.031, is amended by adding a subdivision
98.22to read:
98.23    Subd. 2e. Exemptions for pipeline welding trucks. A pipeline welding truck, as defined
98.24in Code of Federal Regulations, title 49, section 390.38, paragraph (b), including an individual
98.25operating a pipeline welding truck and the employer of the individual, is exempt from any
98.26requirement relating to:
98.27(1) registration as a motor carrier, including the requirement to obtain and display a
98.28United States Department of Transportation number under subdivision 6 and section 168.185;
98.29(2) driver qualifications under section 221.0314, subdivision 2;
98.30(3) driving of commercial motor vehicles under section 221.0314, subdivision 6;
99.1(4) parts, accessories, and inspection, repair, and maintenance of commercial motor
99.2vehicles under section 221.0314, subdivisions 7 and 10; and
99.3(5) hours of service of drivers, including maximum driving and on-duty time under
99.4section 221.0314, subdivision 9.

99.5    Sec. 108. Minnesota Statutes 2016, section 222.49, is amended to read:
99.6222.49 RAIL SERVICE IMPROVEMENT ACCOUNT; APPROPRIATION.
99.7    The rail service improvement account is created in the special revenue fund in the state
99.8treasury. The commissioner shall deposit in this account all consists of funds as provided
99.9by law, and any other money appropriated to or received by the department for the purpose
99.10of rail service improvement donated, allotted, transferred, or otherwise provided to the
99.11account, excluding bond proceeds as authorized by article XI, section 5, clause (i), of the
99.12Minnesota Constitution. All money so deposited is appropriated to the department for
99.13expenditure for rail service improvement in accordance with applicable state and federal
99.14law. This appropriation shall not lapse but shall be available until the purpose for which it
99.15was appropriated has been accomplished. No money appropriated to the department for the
99.16purposes of administering the rail service improvement program shall be deposited in the
99.17rail service improvement account nor shall such administrative costs be paid from the
99.18account.

99.19    Sec. 109. Minnesota Statutes 2016, section 222.50, subdivision 6, is amended to read:
99.20    Subd. 6. Grants. The commissioner may approve grants from the rail service
99.21improvement account for payment of up to 50 percent of the nonfederal share of the cost
99.22of any rail line project under the federal rail service continuation program freight rail service
99.23improvements that support economic development.

99.24    Sec. 110. Minnesota Statutes 2016, section 256B.15, subdivision 1a, is amended to read:
99.25    Subd. 1a. Estates subject to claims. (a) If a person receives medical assistance hereunder,
99.26on the person's death, if single, or on the death of the survivor of a married couple, either
99.27or both of whom received medical assistance, or as otherwise provided for in this section,
99.28the amount paid for medical assistance as limited under subdivision 2 for the person and
99.29spouse shall be filed as a claim against the estate of the person or the estate of the surviving
99.30spouse in the court having jurisdiction to probate the estate or to issue a decree of descent
99.31according to sections 525.31 to 525.313.
99.32(b) For the purposes of this section, the person's estate must consist of:
100.1(1) the person's probate estate;
100.2(2) all of the person's interests or proceeds of those interests in real property the person
100.3owned as a life tenant or as a joint tenant with a right of survivorship at the time of the
100.4person's death;
100.5(3) all of the person's interests or proceeds of those interests in securities the person
100.6owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time
100.7of the person's death, to the extent the interests or proceeds of those interests become part
100.8of the probate estate under section 524.6-307;
100.9(4) all of the person's interests in joint accounts, multiple-party accounts, and pay-on-death
100.10accounts, brokerage accounts, investment accounts, or the proceeds of those accounts, as
100.11provided under sections 524.6-201 to 524.6-214 at the time of the person's death to the
100.12extent the interests become part of the probate estate under section 524.6-207; and
100.13(5) assets conveyed to a survivor, heir, or assign of the person through survivorship,
100.14living trust, transfer-on-death of title or deed, or other arrangements.
100.15(c) For the purpose of this section and recovery in a surviving spouse's estate for medical
100.16assistance paid for a predeceased spouse, the estate must consist of all of the legal title and
100.17interests the deceased individual's predeceased spouse had in jointly owned or marital
100.18property at the time of the spouse's death, as defined in subdivision 2b, and the proceeds of
100.19those interests, that passed to the deceased individual or another individual, a survivor, an
100.20heir, or an assign of the predeceased spouse through a joint tenancy, tenancy in common,
100.21survivorship, life estate, living trust, or other arrangement. A deceased recipient who, at
100.22death, owned the property jointly with the surviving spouse shall have an interest in the
100.23entire property.
100.24(d) For the purpose of recovery in a single person's estate or the estate of a survivor of
100.25a married couple, "other arrangement" includes any other means by which title to all or any
100.26part of the jointly owned or marital property or interest passed from the predeceased spouse
100.27to another including, but not limited to, transfers between spouses which are permitted,
100.28prohibited, or penalized for purposes of medical assistance.
100.29(e) A claim shall be filed if medical assistance was rendered for either or both persons
100.30under one of the following circumstances:
100.31(1) the person was over 55 years of age, and received services under this chapter prior
100.32to January 1, 2014;
101.1(2) the person resided in a medical institution for six months or longer, received services
101.2under this chapter, and, at the time of institutionalization or application for medical assistance,
101.3whichever is later, the person could not have reasonably been expected to be discharged
101.4and returned home, as certified in writing by the person's treating physician. For purposes
101.5of this section only, a "medical institution" means a skilled nursing facility, intermediate
101.6care facility, intermediate care facility for persons with developmental disabilities, nursing
101.7facility, or inpatient hospital;
101.8(3) the person received general assistance medical care services under the program
101.9formerly codified under chapter 256D; or
101.10(4) the person was 55 years of age or older and received medical assistance services on
101.11or after January 1, 2014, that consisted of nursing facility services, home and
101.12community-based services, or related hospital and prescription drug benefits.
101.13(f) The claim shall be considered an expense of the last illness of the decedent for the
101.14purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a state or
101.15county agency with a claim under this section must be a creditor under section 524.6-307.
101.16Any statute of limitations that purports to limit any county agency or the state agency, or
101.17both, to recover for medical assistance granted hereunder shall not apply to any claim made
101.18hereunder for reimbursement for any medical assistance granted hereunder. Notice of the
101.19claim shall be given to all heirs and devisees of the decedent, and to other persons with an
101.20ownership interest in the real property owned by the decedent at the time of the decedent's
101.21death, whose identity can be ascertained with reasonable diligence. The notice must include
101.22procedures and instructions for making an application for a hardship waiver under subdivision
101.235; time frames for submitting an application and determination; and information regarding
101.24appeal rights and procedures. Counties are entitled to one-half of the nonfederal share of
101.25medical assistance collections from estates that are directly attributable to county effort.
101.26Counties are entitled to ten percent of the collections for alternative care directly attributable
101.27to county effort.

101.28    Sec. 111. Minnesota Statutes 2016, section 297A.815, subdivision 3, is amended to read:
101.29    Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision,
101.30"net revenue" means an amount equal to the revenues, including interest and penalties,
101.31collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
101.32    (b) (a) On or before June 30 of each fiscal year, the commissioner of revenue shall must
101.33estimate the amount of the net revenue revenues, including interest and penalties and minus
101.34refunds, collected under this section for the current fiscal year.
102.1    (c) On or after (b) By July 1 15 of the subsequent fiscal year, the commissioner of
102.2management and budget shall must transfer the net revenue as revenues estimated in under
102.3paragraph (b) (a) from the general fund, as follows:
102.4(1) 38 percent to the county state-aid highway fund;
102.5(2) 38 percent to the greater Minnesota transit account;
102.6(3) 13 percent to the Minnesota state transportation fund; and
102.7(4) 11 percent to the highway user tax distribution fund.
102.8    (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to the
102.9county state-aid highway fund. (c) Notwithstanding any other law to the contrary, the
102.10commissioner of transportation shall must allocate the funds transferred under this paragraph
102.11(b), clause (1), to the counties in the metropolitan area, as defined in section 473.121,
102.12subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall
102.13receive of such amount receives the percentage that its population, as defined in section
102.14477A.011 , subdivision 3, estimated or established by July 15 of the year prior to the current
102.15calendar year, bears to the total population of the counties receiving funds under this clause;
102.16and paragraph.
102.17    (2) the remainder to the greater Minnesota transit account. (d) The amount transferred
102.18under paragraph (b), clause (3), must be used for the local bridge program under section
102.19174.50, subdivisions 6 to 7.
102.20(e) The revenues under this subdivision do not include the revenues, including interest
102.21and penalties and minus refunds, generated by the sales tax imposed under section 297A.62,
102.22subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
102.23article XI, section 15.
102.24EFFECTIVE DATE.This section is effective the day following final enactment and
102.25applies beginning with transfers recognized in fiscal year 2018.

102.26    Sec. 112. Minnesota Statutes 2016, section 297A.94, is amended to read:
102.27297A.94 DEPOSIT OF REVENUES.
102.28(a) Except as provided in this section, the commissioner shall deposit the revenues,
102.29including interest and penalties, derived from the taxes imposed by this chapter in the state
102.30treasury and credit them to the general fund.
102.31(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
102.32account in the special revenue fund if:
103.1(1) the taxes are derived from sales and use of property and services purchased for the
103.2construction and operation of an agricultural resource project; and
103.3(2) the purchase was made on or after the date on which a conditional commitment was
103.4made for a loan guaranty for the project under section 41A.04, subdivision 3.
103.5The commissioner of management and budget shall certify to the commissioner the date on
103.6which the project received the conditional commitment. The amount deposited in the loan
103.7guaranty account must be reduced by any refunds and by the costs incurred by the Department
103.8of Revenue to administer and enforce the assessment and collection of the taxes.
103.9(c) The commissioner shall deposit the revenues, including interest and penalties, derived
103.10from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
103.11paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
103.12(1) first to the general obligation special tax bond debt service account in each fiscal
103.13year the amount required by section 16A.661, subdivision 3, paragraph (b); and
103.14(2) after the requirements of clause (1) have been met, the balance to the general fund.
103.15(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
103.16in the state treasury the revenues collected under section 297A.64, subdivision 1, including
103.17interest and penalties and minus refunds, and credit them to the highway user tax distribution
103.18fund.
103.19(e) The commissioner shall deposit the revenues, including interest and penalties,
103.20collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
103.21general fund. By July 15 of each year the commissioner shall transfer to the highway user
103.22tax distribution fund an amount equal to the excess fees collected under section 297A.64,
103.23subdivision 5
, for the previous calendar year.
103.24(e) (f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the
103.25deposit of revenues under paragraph (d), the commissioner shall deposit into the state
103.26treasury and credit to the highway user tax distribution fund an amount equal to the estimated
103.27revenues derived from the tax rate imposed under section 297A.62, subdivision 1, on the
103.28lease or rental for not more than 28 days of rental motor vehicles subject to section 297A.64.
103.29The commissioner shall estimate the amount of sales tax revenue deposited under this
103.30paragraph based on the amount of revenue deposited under paragraph (d).
103.31(g) Starting after July 1, 2017, the commissioner shall deposit an amount of the
103.32remittances monthly into the state treasury and credit them to the highway user tax
103.33distribution fund as a portion of the estimated amount of taxes collected from the sale and
104.1purchase of motor vehicle repair parts in that month. For the remittances between July 1,
104.22017, and June 30, 2019, the monthly deposit amount is $6,001,000. For remittances in
104.3each subsequent fiscal year, the monthly deposit amount is $17,173,000. For purposes of
104.4this paragraph, "motor vehicle" has the meaning given in section 297B.01, subdivision 11,
104.5and "motor vehicle repair and replacement parts" includes (i) all parts, tires, accessories,
104.6and equipment incorporated into or affixed to the motor vehicle as part of the motor vehicle
104.7maintenance and repair, and (ii) paint, oil, and other fluids that remain on or in the motor
104.8vehicle as part of the motor vehicle maintenance or repair. For purposes of this paragraph,
104.9"tire" means any tire of the type used on highway vehicles, if wholly or partially made of
104.10rubber and if marked according to federal regulations for highway use.
104.11(h) 72.43 percent of the revenues, including interest and penalties, transmitted to the
104.12commissioner under section 297A.65, must be deposited by the commissioner in the state
104.13treasury as follows:
104.14(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
104.15the game and fish fund, and may be spent only on activities that improve, enhance, or protect
104.16fish and wildlife resources, including conservation, restoration, and enhancement of land,
104.17water, and other natural resources of the state;
104.18(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
104.19be spent only for state parks and trails;
104.20(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
104.21be spent only on metropolitan park and trail grants;
104.22(4) three percent of the receipts must be deposited in the natural resources fund, and
104.23may be spent only on local trail grants; and
104.24(5) two percent of the receipts must be deposited in the natural resources fund, and may
104.25be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
104.26and the Duluth Zoo.
104.27(f) (i) The revenue dedicated under paragraph (e) (h) may not be used as a substitute
104.28for traditional sources of funding for the purposes specified, but the dedicated revenue shall
104.29supplement traditional sources of funding for those purposes. Land acquired with money
104.30deposited in the game and fish fund under paragraph (e) (h) must be open to public hunting
104.31and fishing during the open season, except that in aquatic management areas or on lands
104.32where angling easements have been acquired, fishing may be prohibited during certain times
104.33of the year and hunting may be prohibited. At least 87 percent of the money deposited in
105.1the game and fish fund for improvement, enhancement, or protection of fish and wildlife
105.2resources under paragraph (e) (h) must be allocated for field operations.
105.3(g) (j) The revenues deposited under paragraphs (a) to (f) (i) do not include the revenues,
105.4including interest and penalties, generated by the sales tax imposed under section 297A.62,
105.5subdivision 1a
, which must be deposited as provided under the Minnesota Constitution,
105.6article XI, section 15.
105.7EFFECTIVE DATE.This section is effective July 1, 2017.

105.8    Sec. 113. Minnesota Statutes 2016, section 297A.992, is amended by adding a subdivision
105.9to read:
105.10    Subd. 10a. Termination of taxes; use of remaining funds. If the joint powers agreement
105.11under subdivision 3 is terminated, funds received by a county in association with the
105.12termination may be used for any of the purposes specified in section 297A.993, subdivision
105.132.
105.14EFFECTIVE DATE.This section is effective the day following final enactment.

105.15    Sec. 114. Minnesota Statutes 2016, section 297B.01, subdivision 16, is amended to read:
105.16    Subd. 16. Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," "sells,"
105.17"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor
105.18vehicle, whether absolutely or conditionally, for a consideration in money or by exchange
105.19or barter for any purpose other than resale in the regular course of business.
105.20    (b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or
105.21by holding it in an effort to so lease it, and which is put to no other use by the owner other
105.22than resale after such lease or effort to lease, shall be considered property purchased for
105.23resale.
105.24    (c) The terms also shall include any transfer of title or ownership of a motor vehicle by
105.25other means, for or without consideration, except that these terms shall not include:
105.26    (1) the acquisition of a motor vehicle by inheritance from or by bequest of, or
105.27transfer-on-death of title by, a decedent who owned it;
105.28    (2) the transfer of a motor vehicle which was previously licensed in the names of two
105.29or more joint tenants and subsequently transferred without monetary consideration to one
105.30or more of the joint tenants;
106.1    (3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer
106.2licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with
106.3no monetary or other consideration or expectation of consideration and the parties to the
106.4transfer submit an affidavit to that effect at the time the title transfer is recorded;
106.5    (4) the transfer of a motor vehicle by gift between:
106.6(i) spouses;
106.7(ii) parents and a child; or
106.8(iii) grandparents and a grandchild;
106.9(5) the voluntary or involuntary transfer of a motor vehicle between a husband and wife
106.10in a divorce proceeding; or
106.11    (6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from
106.12federal income taxation under section 501(c)(3) of the Internal Revenue Code when the
106.13motor vehicle will be used exclusively for religious, charitable, or educational purposes.

106.14    Sec. 115. Minnesota Statutes 2016, section 299D.03, subdivision 6, is amended to read:
106.15    Subd. 6. Training program. The commissioner of public safety may provide training
106.16programs for the purpose of obtaining qualified personnel for the State Patrol. Persons
106.17accepted by the commissioner of public safety for training under this training program shall
106.18be designated State Patrol trainees and shall receive a salary not to exceed no less than 70
106.19percent of the basic salary for patrol officers as prescribed in subdivision 2, during the period
106.20of the training. Nothing contained in this subdivision shall be construed to prevent the
106.21commissioner of public safety from providing in-service training programs for State Patrol
106.22officers. The commissioner of transportation shall furnish the commissioner of public safety
106.23with lands and buildings necessary in providing in-service training programs and the
106.24Department of Public Safety shall reimburse the Department of Transportation for all
106.25reasonable costs incurred due to the provision of these training facilities.

106.26    Sec. 116. Minnesota Statutes 2016, section 398A.10, subdivision 3, is amended to read:
106.27    Subd. 3. Application. This section only applies to a county that has imposed the
106.28metropolitan transportation sales and use tax under section 297A.992 and applies whether
106.29or not the tax is currently in effect.
106.30EFFECTIVE DATE.This section is effective the day following final enactment.

107.1    Sec. 117. Minnesota Statutes 2016, section 398A.10, subdivision 4, is amended to read:
107.2    Subd. 4. Definition. For purposes of this section, "project" means the initial construction
107.3or extension of a minimum operable segment of a new light rail transit or commuter rail
107.4line, but does not include infill stations, project enhancements, extensions, or supportive
107.5infrastructure, constructed after the rail transit is operational.
107.6EFFECTIVE DATE.This section is effective the day following final enactment.

107.7    Sec. 118. Minnesota Statutes 2016, section 473.121, subdivision 2, is amended to read:
107.8    Subd. 2. Metropolitan area or area. "Metropolitan area" or "area" means the area over
107.9which the Metropolitan Council has jurisdiction, including only the counties of Anoka;
107.10Carver; Dakota excluding the city cities of Northfield and Cannon Falls; Hennepin excluding
107.11the cities of Hanover and Rockford; Ramsey; Scott excluding the city of New Prague; and
107.12Washington.
107.13EFFECTIVE DATE; APPLICATION.This section is effective the day following
107.14final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
107.15Scott, and Washington.

107.16    Sec. 119. Minnesota Statutes 2016, section 473.123, is amended to read:
107.17473.123 METROPOLITAN COUNCIL.
107.18    Subdivision 1. Creation; membership. (a) A Metropolitan Council with jurisdiction
107.19in the metropolitan area is established as a public corporation and political subdivision of
107.20the state. It shall be under the supervision and control of 17 27 members, all of whom shall
107.21must be residents of the metropolitan area. and appointed as follows:
107.22(1) a county commissioner from each metropolitan county, appointed by the respective
107.23county boards;
107.24(2) a local elected official appointed from each Metropolitan Council district by the
107.25municipal committee for the council district established in subdivision 2b;
107.26(3) the commissioner of transportation or the commissioner's designee;
107.27(4) one person to represent nonmotorized transportation, appointed by the commissioner
107.28of transportation;
107.29(5) one person to represent freight transportation, appointed by the commissioner of
107.30transportation; and
108.1(6) one person to represent public transit, appointed by the commissioner of
108.2transportation.
108.3(b) The local elected offices identified in paragraph (a) are compatible with the office
108.4of a Metropolitan Council member.
108.5(c) Notwithstanding any change to the definition of the metropolitan area in section
108.6473.121, subdivision 2, the jurisdiction of the Metropolitan Council is limited to the
108.7seven-county metropolitan area.
108.8    Subd. 2a. Terms. (a) Following each apportionment of council districts, as provided
108.9under subdivision 3a, council members must be appointed from newly drawn districts as
108.10provided in subdivision 3a. Each council member, other than the chair, must reside in the
108.11council district represented. Each council district must be represented by one member of
108.12the council. The terms of members end with the term of the governor, except that all terms
108.13expire on the effective date of the next apportionment. A member serves at the pleasure of
108.14the governor. the municipal committee for each council district must appoint a local elected
108.15official who resides in the district to serve on the Metropolitan Council for a two-year term.
108.16A member's position on the Metropolitan Council becomes vacant if the member ceases to
108.17be a local elected official or as provided in chapter 351, and any vacancy must be filled as
108.18soon as practicable for the unexpired term in the same manner as the appointment for a
108.19regular term. A member shall continue continues to serve the member's district until a
108.20successor is appointed and qualified; except that, following each apportionment, the member
108.21shall continue continues to serve at large until the governor appoints 16 council members,
108.22one municipal committee for the council district appoints a member from each of the newly
108.23drawn council districts district as provided under subdivision 3a, to serve terms as provided
108.24under this section. The appointment to the council must be made by the first Monday in
108.25March of the year in which the term ends.
108.26(b) A county commissioner is appointed to the Metropolitan Council for a two-year
108.27term. In addition to the provisions in chapter 351, if a member appointed under this paragraph
108.28ceases to be a county commissioner, the council position becomes vacant. A vacancy must
108.29be filled as soon as practicable for the unexpired term in the same manner as the appointment
108.30for a regular term.
108.31(c) An individual appointed by the commissioner of transportation under subdivision 1
108.32serves at the pleasure of the appointing authority.
108.33    Subd. 2b. Municipal committee in each council district. The governing body of each
108.34home rule charter or statutory city and town in each Metropolitan Council district must
109.1appoint a member to serve on a municipal committee for the council district. If a city or
109.2town is in more than one council district, the governing body must appoint a member to
109.3serve on each council district's municipal committee. A member appointed to a council
109.4district's municipal committee must reside in the council district. In addition to appointing
109.5a municipal committee member to serve as a member of the Metropolitan Council as provided
109.6in subdivision 2a, the municipal committee must meet at least quarterly to discuss issues
109.7relating to the Metropolitan Council.
109.8    Subd. 3. Membership; appointment; qualifications Compensation. (a) Sixteen
109.9members must be appointed by the governor from districts defined by this section. Each
109.10council member must reside in the council district represented. Each council district must
109.11be represented by one member of the council. In addition to any compensation as a local
109.12elected official, the council must pay each member of the council other than the chair or
109.13the commissioner of transportation, or the commissioner's designee, $20,000 per year plus
109.14reimbursement of actual and necessary expenses as approved by the council. The
109.15commissioner of transportation or the commissioner's designee is not eligible for
109.16compensation under this subdivision but may be reimbursed for actual and necessary
109.17expenses.
109.18(b) In addition to the notice required by section 15.0597, subdivision 4, notice of
109.19vacancies and expiration of terms must be published in newspapers of general circulation
109.20in the metropolitan area and the appropriate districts. The governing bodies of the statutory
109.21and home rule charter cities, counties, and towns having territory in the district for which
109.22a member is to be appointed must be notified in writing. The notices must describe the
109.23appointments process and invite participation and recommendations on the appointment.
109.24In addition to any compensation as a local elected official, the council must pay the chair
109.25$40,000 per year plus reimbursement of actual and necessary expenses as approved by the
109.26council.
109.27(c) The governor shall create a nominating committee, composed of seven metropolitan
109.28citizens appointed by the governor, to nominate persons for appointment to the council from
109.29districts. Three of the committee members must be local elected officials. Following the
109.30submission of applications as provided under section 15.0597, subdivision 5, the nominating
109.31committee shall conduct public meetings, after appropriate notice, to accept statements from
109.32or on behalf of persons who have applied or been nominated for appointment and to allow
109.33consultation with and secure the advice of the public and local elected officials. The
109.34committee shall hold the meeting on each appointment in the district or in a reasonably
109.35convenient and accessible location in the part of the metropolitan area in which the district
110.1is located. The committee may consolidate meetings. Following the meetings, the committee
110.2shall submit to the governor a list of nominees for each appointment. The governor is not
110.3required to appoint from the list.
110.4(d) Before making an appointment, the governor shall consult with all members of the
110.5legislature from the council district for which the member is to be appointed.
110.6(e) Appointments to the council are subject to the advice and consent of the senate as
110.7provided in section 15.066.
110.8(f) Members of the council must be appointed to reflect fairly the various demographic,
110.9political, and other interests in the metropolitan area and the districts.
110.10(g) Members of the council must be persons knowledgeable about urban and metropolitan
110.11affairs.
110.12(h) Any vacancy in the office of a council member shall immediately be filled for the
110.13unexpired term. In filling a vacancy, the governor may forgo the requirements of paragraph
110.14(c) if the governor has made appointments in full compliance with the requirements of this
110.15subdivision within the preceding 12 months.
110.16    Subd. 3a. Redistricting. The legislature shall must redraw the boundaries of the council
110.17districts after each decennial federal census so that each district has substantially equal
110.18population. Redistricting is effective in the year ending in the numeral "3." Within 60 days
110.19after a redistricting plan takes effect, the governor shall municipal committees must appoint
110.20members from the newly drawn districts to serve terms as provided under subdivision 2a.
110.21    Subd. 3e. District boundaries. Metropolitan Council plan MC2013-1A, on file with
110.22the Geographical Information Systems Office of the Legislative Coordinating Commission
110.23and published on its Web site on April 9, 2013, is adopted and constitutes the redistricting
110.24plan required by subdivision 3a. The boundaries of each Metropolitan Council district are
110.25as described in that plan.
110.26    Subd. 4. Chair; appointment, officers, selection; duties and compensation. (a) The
110.27chair of the Metropolitan Council shall must be appointed by the governor as the 17th 28th
110.28voting member thereof by and with the advice and consent of the senate to serve at the
110.29pleasure of the governor to represent the metropolitan area at large. Senate confirmation
110.30shall be as provided by section 15.066.
110.31The chair of the Metropolitan Council shall must, if present, preside at meetings of the
110.32council, have the primary responsibility for meeting with local elected officials, serve as
110.33the principal legislative liaison, present to the governor and the legislature, after council
111.1approval, the council's plans for regional governance and operations, serve as the principal
111.2spokesperson of the council, and perform other duties assigned by the council or by law.
111.3(b) The Metropolitan Council shall must elect other officers as it deems necessary for
111.4the conduct of its affairs for a one-year term. A secretary and treasurer need not be members
111.5of the Metropolitan Council. Meeting times and places shall must be fixed by the
111.6Metropolitan Council and special meetings may be called by a majority of the members of
111.7the Metropolitan Council or by the chair. The chair and each Metropolitan Council member
111.8shall must be reimbursed for actual and necessary expenses.
111.9(c) Each member of the council shall must attend and participate in council meetings
111.10and meet regularly with local elected officials and legislative members from the council
111.11member's district. Each council member shall must serve on at least one division committee
111.12for transportation, environment, or community development.
111.13(d) In the performance of its duties the Metropolitan Council may adopt policies and
111.14procedures governing its operation, establish committees, and, when specifically authorized
111.15by law, make appointments to other governmental agencies and districts.
111.16    Subd. 8. General counsel. The council may appoint a general counsel to serve at the
111.17pleasure of the council.
111.18    Subd. 9. Authority to vote; quorum; votes required for action. (a) The members
111.19appointed by the counties and municipal committees may vote on all matters before the
111.20council. The commissioner of transportation or the commissioner's designee and the three
111.21members appointed by the commissioner may vote only on matters in which the council is
111.22acting as the metropolitan planning organization for the region as provided in section
111.23473.146.
111.24(b) A quorum is a majority of the members permitted to vote on a matter.
111.25(c) If a quorum is present, the council may adopt its levy only if at least 60 percent of
111.26the members present vote in favor of the levy.
111.27(d) If a quorum is present, the council may adopt a metropolitan system plan or plan
111.28amendment only if at least 60 percent of the members present vote in favor of its adoption.
111.29(e) Except as provided in paragraphs (c) and (d), if a quorum is present, the council may
111.30act on a majority vote of the members present.
111.31EFFECTIVE DATE; TRANSITION; APPLICATION.This section is effective
111.32January 1, 2019, and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
111.33Scott, and Washington.

112.1    Sec. 120. Minnesota Statutes 2016, section 473.146, subdivision 3, is amended to read:
112.2    Subd. 3. Development guide: transportation. The transportation chapter must include
112.3policies relating to all transportation forms and be designed to promote the legislative
112.4determinations, policies, and goals set forth in section 473.371. In addition to the
112.5requirements of subdivision 1 regarding the contents of the policy plan, the nontransit
112.6element of the transportation chapter must include the following:
112.7(1) a statement of the needs and problems of the metropolitan area with respect to the
112.8functions covered, including the present and prospective demand for and constraints on
112.9access to regional business concentrations and other major activity centers and the constraints
112.10on and acceptable levels of development and vehicular trip generation at such centers;
112.11(2) the objectives of and the policies to be forwarded by the policy plan;
112.12(3) a general description of the physical facilities and services to be developed;
112.13(4) a statement as to the general location of physical facilities and service areas;
112.14(5) a general statement of timing and priorities in the development of those physical
112.15facilities and service areas;
112.16(6) a detailed statement, updated every two years, of timing and priorities for
112.17improvements and expenditures needed on the metropolitan highway system;
112.18(7) a general statement on the level of public expenditure appropriate to the facilities;
112.19and
112.20(8) a long-range assessment of air transportation trends and factors that may affect airport
112.21development in the metropolitan area and policies and strategies that will ensure a
112.22comprehensive, coordinated, and timely investigation and evaluation of alternatives for
112.23airport development.
112.24The council shall develop the nontransit element in consultation with the transportation
112.25advisory board and the Metropolitan Airports Commission and cities having an airport
112.26located within or adjacent to its corporate boundaries. The council shall also take into
112.27consideration the airport development and operations plans and activities of the commission.
112.28The council shall transmit the results to the state Department of Transportation.
112.29EFFECTIVE DATE; APPLICATION.This section is effective January 1, 2019, and
112.30applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

113.1    Sec. 121. Minnesota Statutes 2016, section 473.146, subdivision 4, is amended to read:
113.2    Subd. 4. Transportation planning. (a) The Metropolitan Council is the designated
113.3planning agency for any long-range comprehensive transportation planning required by
113.4section 134 of the Federal Highway Act of 1962, Section 4 of Urban Mass Transportation
113.5Act of 1964 and Section 112 of Federal Aid Highway Act of 1973 and other federal
113.6transportation laws. The council shall assure administration and coordination of transportation
113.7planning with appropriate state, regional and other agencies, counties, and municipalities.
113.8(b) The council shall establish an advisory body consisting of citizens and representatives
113.9of municipalities, counties, and state agencies in fulfillment of the planning responsibilities
113.10of the council. The membership of the advisory body must consist of:
113.11(1) the commissioner of transportation or the commissioner's designee;
113.12(2) the commissioner of the Pollution Control Agency or the commissioner's designee;
113.13(3) one member of the Metropolitan Airports Commission appointed by the commission;
113.14(4) one person appointed by the council to represent nonmotorized transportation;
113.15(5) one person appointed by the commissioner of transportation to represent the freight
113.16transportation industry;
113.17(6) two persons appointed by the council to represent public transit;
113.18(7) ten elected officials of cities within the metropolitan area, including one representative
113.19from each first-class city, appointed by the Association of Metropolitan Municipalities;
113.20(8) one member of the county board of each county in the seven-county metropolitan
113.21area, appointed by the respective county boards;
113.22(9) eight citizens appointed by the council, one from each council precinct;
113.23(10) one elected official from a city participating in the replacement service program
113.24under section 473.388, appointed by the Suburban Transit Association; and
113.25(11) one member of the council, appointed by the council.
113.26(c) The council shall appoint a chair from among the members of the advisory body.
113.27EFFECTIVE DATE; APPLICATION.This section is effective January 1, 2019, and
113.28applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

114.1    Sec. 122. Minnesota Statutes 2016, section 473.388, subdivision 4, is amended to read:
114.2    Subd. 4. Financial assistance. (a) The council must grant the requested financial
114.3assistance if it determines that the proposed service is intended to replace the service to the
114.4applying city or town or combination thereof by the council and that the proposed service
114.5will meet the needs of the applicant at least as efficiently and effectively as the existing
114.6service.
114.7    (b) The minimum amount of assistance which the council must provide to a system
114.8under this section may not be less than the sum of the amounts determined calculated for
114.9each municipality comprising the system as follows: of the replacement service
114.10municipalities.
114.11(c) The minimum amount of financial assistance for each replacement service
114.12municipality is calculated as:
114.13    (1) an amount equal to 4.3 percent of the total state revenues generated from the taxes
114.14imposed under chapter 297B for the current fiscal year; times
114.15    (2) the ratio of (i) the transit operating assistance grants received under this subdivision
114.16by the municipality in calendar year 2001 or the tax revenues for transit services levied by
114.17the municipality for taxes payable in 2001, including that portion of the levy derived from
114.18the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the
114.19municipality's aid under Minnesota Statutes 2002, section 273.1398, subdivision 2,
114.20attributable to the transit levy; times (2) the ratio of (i) an amount equal to 3.74 percent of
114.21the state revenues generated from the taxes imposed under chapter 297B for the current
114.22fiscal year to (ii) the total transit operating assistance grants received under this subdivision
114.23in calendar year 2001 or the tax revenues for transit services levied by all replacement
114.24service municipalities under this section for taxes payable in 2001, including that portion
114.25of the levy derived from the areawide pool under section 473F.08, subdivision 3, clause
114.26(a), plus the portion of homestead and agricultural credit aid under Minnesota Statutes 2002,
114.27section 273.1398, subdivision 2, attributable to nondebt transit levies; times
114.28    (3) the ratio of (i) the municipality's total taxable market value for taxes payable in 2006
114.29divided by the municipality's total taxable market value for taxes payable in 2001, to (ii)
114.30the total taxable market value of all property located in replacement service municipalities
114.31for taxes payable in 2006 divided by the total taxable market value of all property located
114.32in replacement service municipalities for taxes payable in 2001.
114.33    (c) The council shall must pay the amount to be provided to the recipient from the funds
114.34the council receives in the metropolitan area transit account under section 16A.88.
115.1EFFECTIVE DATE; APPLICATION.This section is effective the day following
115.2final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
115.3Scott, and Washington.

115.4    Sec. 123. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision
115.5to read:
115.6    Subd. 6. Limitation on certain debt obligations. The council is prohibited from issuing
115.7certificates of participation, certificates of indebtedness, bonds, or other obligations secured
115.8in whole or in part by a pledge of motor vehicle sales tax revenue received under sections
115.916A.88 and 297B.09, or by a pledge of any earnings from the council's investment of motor
115.10vehicle sales tax revenues.
115.11EFFECTIVE DATE; APPLICATION.This section is effective the day following
115.12final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
115.13Scott, and Washington.

115.14    Sec. 124. Minnesota Statutes 2016, section 473.3994, is amended by adding a subdivision
115.15to read:
115.16    Subd. 16. Project development requirements; alternatives and benefits analysis. (a)
115.17As part of light rail transit project development and prior to initiating an environmental
115.18analysis or preliminary engineering, the responsible authority must perform an alternatives
115.19and benefits analysis.
115.20(b) In addition to any other information or requirements, the alternatives and benefits
115.21analysis must:
115.22(1) include (i) a no-build option; and (ii) options for each major transit mode, including
115.23but not limited to regular route bus service, arterial bus rapid transit, highway bus rapid
115.24transit, express bus service, and dedicated busway;
115.25(2) evaluate capacity adequacy and congestion impacts under each option;
115.26(3) include a comprehensive benefit-cost analysis; and
115.27(4) review conformity with the transportation policy plan under section 473.146.
115.28EFFECTIVE DATE; APPLICATION.This section is effective the day following
115.29final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
115.30Scott, and Washington, for projects that have yet to formally enter the engineering phase
115.31of the Federal Transit Administration's "New Starts" capital investment project program.

116.1    Sec. 125. Minnesota Statutes 2016, section 473.4051, subdivision 2, is amended to read:
116.2    Subd. 2. Operating costs. (a) After operating revenue and federal money have been
116.3used to pay for light rail transit operations, 50 percent of the remaining operating costs for
116.4a light rail transit line must be paid by the state if:
116.5(1) the light rail transit line is in revenue operations as of the effective date of this section;
116.6or
116.7(2) a law is enacted on or after the effective date of this section making an appropriation
116.8that (i) is from state sources, (ii) specifies the light rail transit project, and (iii) is for a portion
116.9of project capital costs.
116.10(b) For a light rail transit line that does not meet the requirements in paragraph (a), all
116.11operating and ongoing capital maintenance costs must be paid from nonstate sources.
116.12(c) For purposes of this subdivision, a light rail transit extension that adds additional
116.13stops is a separate project or light rail transit line.
116.14EFFECTIVE DATE; APPLICABILITY.This section is effective the day following
116.15final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
116.16Scott, and Washington.

116.17    Sec. 126. Minnesota Statutes 2016, section 473.857, subdivision 2, is amended to read:
116.18    Subd. 2. Within 60 days; report. A hearing shall be conducted within 60 days after the
116.19request, provided that the advisory committee or the administrative law judge shall
116.20consolidate hearings on related requests. The 60-day period within which the hearing shall
116.21be conducted may be extended or suspended by mutual agreement of the council and the
116.22local governmental unit. The hearing shall not consider the need for or reasonableness of
116.23the metropolitan system plans or parts thereof. The hearing shall afford all interested persons
116.24an opportunity to testify and present evidence. The advisory committee or administrative
116.25law judge may employ the appropriate technical and professional services of the office of
116.26dispute resolution for the purpose of evaluating disputes of fact. The proceedings shall not
116.27be deemed a contested case. Within 30 days after the hearing, the advisory committee or
116.28the administrative law judge shall report to the council respecting the proposed amendments
116.29to the system statements. The report shall contain findings of fact, conclusions, and
116.30recommendations and shall apportion the costs of the proceedings among the parties.
116.31EFFECTIVE DATE.This section is effective January 1, 2019, and applies in the
116.32counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

117.1    Sec. 127. MOTOR VEHICLE PARTS SALES TAXES ESTIMATION.
117.2(a) By January 15, 2019, the commissioner of revenue must submit a report on state
117.3general sales taxes attributable to motor vehicle repair and replacement parts to the chairs
117.4and ranking minority members of the legislative committees with jurisdiction over taxes
117.5and transportation policy and finance.
117.6(b) The report must provide an estimate, based on federal data and department
117.7consumption models, of the percentage of total sales tax revenues collected in a calendar
117.8year from the tax rate imposed under Minnesota Statutes, section 297A.62, subdivision 1,
117.9that is attributable to sales and purchases of motor vehicle repair and replacement parts.
117.10(c) For purposes of this section, "motor vehicle repair and replacement parts" has the
117.11meaning given in Minnesota Statutes, section 297A.94.

117.12    Sec. 128. TRANSPORTATION PROJECT SELECTION PROCESS.
117.13    Subdivision 1. Adoption of policy. (a) The commissioner of transportation, after
117.14consultation with the Federal Highway Administration, metropolitan planning organizations,
117.15regional development commissions, area transportation partnerships, local governments,
117.16the Metropolitan Council, and transportation stakeholders, must develop, adopt, and
117.17implement a policy for project evaluation and selection to apply to the project selection
117.18process and to special program selection processes, such as corridors of commerce. The
117.19commissioner must adopt and implement the policy no later than January 1, 2018, and may
117.20update the policy as appropriate. The commissioner must publish the policy and updates
117.21on the department's Web site and through other effective means selected by the commissioner.
117.22(b) For each selection process, the policy adopted under this section must:
117.23(1) establish a process that identifies criteria, the weight of each criterion, and a process
117.24to score each project based on the weighted criteria; the scoring system may consider project
117.25readiness as a criterion for evaluation, but project readiness must not be a major factor in
117.26determining the final score;
117.27(2) identify and apply all relevant criteria contained in enacted Minnesota or federal law,
117.28or added by the commissioner;
117.29(3) identify for stakeholders and the general public the candidate project selected under
117.30each selection process and every project considered that was not selected;
117.31(4) involve area transportation partnerships and other local authorities, as appropriate,
117.32in the process of scoring and ranking candidate projects under consideration;
118.1(5) publicize scoring and decision outcomes concerning each candidate project, including
118.2the projects that were considered but not selected, and the reason each project was not
118.3selected; and
118.4(6) require that the projects in the state transportation improvement program include the
118.5score assigned to the project.
118.6(c) At a minimum, the policy adopted under this subdivision must conform with the
118.7criteria for the corridors of commerce program under Minnesota Statutes, section 161.088,
118.8and the transportation economic development program under Minnesota Statutes, section
118.9174.12.
118.10    Subd. 2. Report to legislature. By March 1, 2018, the commissioner must submit a
118.11report to the chairs, ranking minority members, and staff of the legislative committees with
118.12jurisdiction over transportation policy and finance concerning the adopted policy and how
118.13the policy is anticipated to improve the consistency, objectivity, and transparency of the
118.14selection process. The report must include information on input from members of the public
118.15and the organizations identified in subdivision 1. The report must also include proposed
118.16legislation to codify the policy.

118.17    Sec. 129. CORRIDORS OF COMMERCE PROJECT ELIGIBILITY.
118.18Notwithstanding the requirements of Minnesota Statutes, section 161.088, subdivisions
118.193 to 5, the commissioner of transportation must include that segment of marked U.S. Highway
118.20212 from Chaska to Montevideo as an eligible highway in the next project solicitation and
118.21selection process undertaken for the corridors of commerce program under that section.
118.22EFFECTIVE DATE.This section is effective the day following final enactment.

118.23    Sec. 130. CITY OF EXCELSIOR; ELIGIBILITY FOR REPLACEMENT SERVICE.
118.24Notwithstanding Minnesota Statutes, section 473.388, subdivisions 2, 3, and 4, paragraph
118.25(a), the Metropolitan Council must grant financial assistance to the city of Excelsior for
118.26replacement service. Financial assistance must be provided to the city of Excelsior as
118.27provided under Minnesota Statutes, section 473.388, subdivision 4, paragraphs (b) and (c).
118.28The city of Excelsior is eligible to receive other assistance as provided in Minnesota Statutes,
118.29section 473.388, subdivision 5, and may levy a local tax as provided in Minnesota Statutes,
118.30section 473.388, subdivision 7.

119.1    Sec. 131. DRIVER'S LICENSE AGENT IN NEW BRIGHTON.
119.2(a) The commissioner of public safety must revise the appointment of the city of New
119.3Brighton as a driver's license agent to provide authority to operate as a full-service driver
119.4licensing office located in New Brighton city hall. This paragraph applies notwithstanding:
119.5(1) Minnesota Statutes, section 171.061, subdivision 2; (2) requirements under Minnesota
119.6Rules, part 7404.0300, subpart 3; and (3) procedures for county board appointment of a
119.7driver's license agent, including under Minnesota Rules, part 7404.0350. All other provisions
119.8regarding the appointment and operation of a driver's license agent under Minnesota Statutes,
119.9section 171.061, and Minnesota Rules, chapter 7404, apply.
119.10(b) The commissioner must make the appointment under this section within two weeks
119.11of receipt of an appointment application pursuant to the commissioner's procedures under
119.12Minnesota Rules.

119.13    Sec. 132. ELECTRONIC STORAGE STANDARDS.
119.14On or before August 1, 2017, the commissioner of public safety must establish standards
119.15for the conversion by deputy registrars and driver's license agents to secure electronic storage
119.16of certain records under Minnesota Statutes, sections 168.33, subdivision 2, and 171.061,
119.17subdivision 3. The standards must specify minimum system security requirements, as well
119.18as any procedural requirements for the destruction of existing and new paper-based records,
119.19consistent with the requirements of Minnesota Statutes, section 138.17. The authority to
119.20establish or amend standards under this section expires August 1, 2018.
119.21EFFECTIVE DATE.This section is effective the day following final enactment.

119.22    Sec. 133. RULE CHANGE ON SCHOOL BUS OPERATION.
119.23The commissioner of public safety must amend Minnesota Rules, part 7470.1000, subpart
119.242, so that it is consistent with Minnesota Statutes, section 169.443, subdivision 2, using the
119.25good cause procedure under Minnesota Statutes, section 14.388.
119.26EFFECTIVE DATE.This section is effective the day following final enactment.

119.27    Sec. 134. CONVEYANCE FOR HISTORICAL PURPOSES; MCKINSTRY
119.28SURPLUS LANDS.
119.29(a) Notwithstanding any other law to the contrary, the commissioner may convey as
119.30provided in Minnesota Statutes, section 161.44, land described in paragraph (b), including
119.31any improvements on the lands, owned in fee by the state for trunk highway purposes, but
120.1no longer needed, to the Minnesota Historical Society for historical purposes. The conveyance
120.2must be without financial consideration. The lands conveyed must become a part of the
120.3state's historic sites program under Minnesota Statutes, chapter 138.
120.4(b) The lands that may be conveyed are specifically related to the properties of the
120.5McKinstry Mounds and portions of the McKinstry Village site owned by the Department
120.6of Transportation, located along Trunk Highway 11 in Koochiching County.

120.7    Sec. 135. DEPARTMENT OF TRANSPORTATION LOAN CONVERSION.
120.8The commissioner of transportation must (1) convert the remaining balance on Contract
120.9No. 82799, originally executed with the Minnesota Valley Regional Rail Authority on
120.10January 28, 2002, to a grant, and (2) cancel all future payments under the contract. The
120.11commissioner is prohibited from requiring or accepting additional payments under Contract
120.12No. 82799 as of the effective date of this section. Notwithstanding the loan conversion and
120.13payment cancellation under this section, all other terms and conditions under Contract No.
120.1482799 remain effective for the duration of the period specified in the contract.
120.15EFFECTIVE DATE.This section is effective the day following final enactment.

120.16    Sec. 136. MARKED INTERSTATE HIGHWAY 35 WEIGH STATION;
120.17MORATORIUM.
120.18On or before February 1, 2018, the commissioner of transportation is prohibited from
120.19designing, engineering, or constructing a motor vehicle weigh station for the southbound
120.20direction of travel on marked Interstate Highway 35, between the marked Interstate Highways
120.2135W/35E split and two miles northerly of the split.
120.22EFFECTIVE DATE.This section is effective the day following final enactment.

120.23    Sec. 137. HIGHWAY CONSTRUCTION COSTS AND COST INFLATION STUDY.
120.24    Subdivision 1. Highway construction cost study; requirements. (a) The commissioner
120.25of transportation must enter into an agreement with an organization or entity having relevant
120.26expertise to conduct a study on highway construction costs, inflation, and cost estimating.
120.27The study must be designed to identify and analyze the nature of discrepancies in highway
120.28construction costs and cost inflation estimates between Minnesota and other federal and
120.29national measures.
120.30(b) At a minimum, the study must:
120.31(1) include an overview of highway construction cost and cost estimation issues;
121.1(2) establish benchmarks to compare costs in Minnesota to at least four other states that
121.2are comparable based on climate and construction characteristics, including historical
121.3state-by-state review of at least the following cost factors: (i) direct input costs associated
121.4with highway construction, (ii) cost impacts from construction standards and requirements
121.5established in law, and (iii) cost impacts from use of alternative methods of contracting and
121.6project management;
121.7(3) identify factors specific to Minnesota, if any, that contribute to cost differences,
121.8based on the benchmarks established in clause (2);
121.9(4) evaluate the methodology used for highway construction cost calculation and indexing
121.10in Minnesota, including (i) review of associated best practices, (ii) comparison of federal
121.11and Minnesota state highway construction cost index methodologies utilizing historical cost
121.12data for Minnesota, (iii) identification of the reasons for any past discrepancies or differences
121.13between state and federal highway construction cost indexing, and (iv) analysis of the
121.14historical accuracy of the Minnesota highway construction cost index compared to actual
121.15costs; and
121.16(5) provide specific recommendations for road authorities and legislative changes to
121.17reduce highway construction costs.
121.18(c) By February 15, 2018, the commissioner must submit a report on the study to the
121.19chairs, ranking minority members, and staff of the legislative committees with jurisdiction
121.20over transportation policy and finance.
121.21    Subd. 2. Project cost comparison report. By February 15, 2018, the commissioner of
121.22transportation must report to the chairs, ranking minority members, and staff of the senate
121.23and house of representatives committees and divisions with jurisdiction over transportation
121.24policy and finance comparing the estimated cost of projects and the actual cost of projects.
121.25The report must include all projects completed in whole or in part by MnDOT from July 1,
121.262012, to July 1, 2017. For each project, the report must list the estimated cost of the project
121.27prior to starting the project and the total actual cost for the project after completion. For
121.28each project, if the actual cost was less than the estimated cost, the report must explain how
121.29the excess funds were expended.

121.30    Sec. 138. VIBRATION SUSCEPTIBILITY STUDY ON CALHOUN ISLES
121.31PROPERTY.
121.32(a) Within 21 days from the effective date of this act, the Metropolitan Council must
121.33enter into a contract with an engineering group for the engineering group to conduct a
122.1vibration susceptibility study on Calhoun Isles property, including the high-rise building,
122.2townhomes, and parking ramp. The study must:
122.3(1) evaluate the susceptibility of the Calhoun Isles property to vibration during
122.4construction and during operations of a light rail train;
122.5(2) categorize the Calhoun Isles property based on the susceptibility evaluation; and
122.6(3) address mitigation measures and operational changes required to protect the Calhoun
122.7Isles property from vibratory damage.
122.8    (b) The Calhoun Isles Condominium Association must select the engineering group and
122.9notify the Metropolitan Council of the selection within seven days from the effective date
122.10of this act. The Metropolitan Council must bear the entire cost of the study.
122.11EFFECTIVE DATE; APPLICATION.This section is effective the day following
122.12final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
122.13Scott, and Washington.

122.14    Sec. 139. REPORT ON DEDICATED FUND EXPENDITURES.
122.15By February 15, 2018, the commissioners of transportation and public safety, in
122.16consultation with the commissioner of management and budget, must jointly submit a report
122.17to the members and staff of the legislative committees with jurisdiction over transportation
122.18finance. The report must update the information required in the report under Laws 2015,
122.19chapter 75, article 2, section 56, including a detailed list of expenditures and transfers from
122.20the trunk highway fund and highway user tax distribution fund for fiscal years 2014 through
122.212018, and information on the purpose of each expenditure.

122.22    Sec. 140. ACTIVE TRANSPORTATION PROGRAM RECOMMENDATIONS.
122.23(a) By October 1, 2017, the Advisory Committee on Nonmotorized Transportation under
122.24Minnesota Statutes, section 174.37, must develop and submit recommendations to the
122.25commissioner of transportation regarding the project evaluation and selection processes
122.26under Minnesota Statutes, section 174.38, subdivision 7.
122.27(b) The advisory committee is encouraged to consult with representatives from the
122.28Bicycle Alliance of Minnesota; Minnesota Chamber of Commerce; Metropolitan Council
122.29Transportation Accessibility Advisory Committee; Minnesota Department of Transportation
122.30district area transportation partnerships; organizations representing elderly populations;
122.31public health organizations with experience in active transportation; the Minnesota State
122.32Council on Disability and other Minnesota state councils and commissions, including the
123.1Council on Asian-Pacific Minnesotans, the Minnesota Council on Latino Affairs, the Council
123.2for Minnesotans of African Heritage, the Minnesota Indian Affairs Council, the Office on
123.3the Economic Status of Women, and the Cultural and Ethnic Communities Leadership
123.4Council; and other stakeholders with expertise in equitable active transportation.
123.5(c) In its next annual report under Minnesota Statutes, section 174.37, subdivision 4, the
123.6advisory committee must include a summary of the recommendations under this section
123.7and submit a copy of the report to the chairs and ranking minority members of the legislative
123.8committees with jurisdiction over transportation policy and finance. The report is subject
123.9to Minnesota Statutes, section 3.195.

123.10    Sec. 141. REPORT BY COMMISSIONER OF TRANSPORTATION ON MNPASS
123.11LANES AND TOLLING.
123.12(a) On or before January 2, 2018, the commissioner of transportation must report to the
123.13chairs and ranking minority members of the senate and house of representatives committees
123.14and divisions with jurisdiction over transportation policy and finance concerning MnPASS
123.15lanes and tolling to reduce congestion and raise revenue.
123.16(b) At a minimum, the report must, with respect to MnPASS lanes:
123.17(1) for each lane, state the capital costs, maintenance and repair costs, and operation
123.18costs;
123.19(2) for each lane, indicate the current condition and the projected life expectancy;
123.20(3) for each lane, list and explain the cost recovery ratio;
123.21(4) list the amounts of the deposit of revenues made each year since pursuant to Minnesota
123.22Statutes, section 160.93, subdivisions 2 and 2a, including a breakdown of deposits for each
123.23lane for each year the lane has been in existence;
123.24(5) list the cost to participate in the MnPASS program, broken down by each year a lane
123.25has been in existence;
123.26(6) for each lane, list the total number of users, including a breakdown of the total number
123.27of each type of user; and
123.28(7) provide an explanation of how MnPASS lane regulations are enforced.
123.29(c) At a minimum, the report must, with respect to tolling:
123.30(1) summarize current state and federal laws that affect the use of tolling in this state;
123.31(2) identify any federal pilot projects for which this state is eligible to participate;
124.1(3) discuss the feasibility and cost of expanding use of tolling, the possibility of private
124.2investment in toll roads, and projected costs and cost recovery in establishing, operating,
124.3and maintaining toll roads;
124.4(4) review tolling models and technology options;
124.5(5) summarize the experience of other states that have widely implemented tolling;
124.6(6) identify and evaluate the feasibility of toll implementation for specific corridors;
124.7(7) project the likely range of revenues that could be generated by wider implementation
124.8of tolling and identify the percentage of revenues that are projected to be paid by nonresidents
124.9of the state;
124.10(8) discuss options for use of tolling revenue and measures to ensure compliance with
124.11laws governing operation of toll roads and use of revenues;
124.12(9) recommend and discuss possible ways to reduce cost to Minnesotans, such as tax
124.13deductions or credits, or types of discounts; and
124.14(10) provide recommendations for needed statutory or rule changes that would facilitate
124.15wider implementation of tolling and achieve maximum revenues for the state and equity
124.16for its residents.
124.17EFFECTIVE DATE.This section is effective the day following final enactment.

124.18    Sec. 142. REPORT BY COMMISSIONER OF TRANSPORTATION ON
124.19TURNBACKS.
124.20(a) By February 15, 2018, the commissioner of transportation must report to the chairs
124.21and ranking minority members of the senate and house of representatives committees having
124.22jurisdiction over transportation policy and finance concerning turnbacks. At a minimum,
124.23the report must include:
124.24(1) a current list of proposed turnback projects, including a description of each segment
124.25of highway that is to be turned back; a description of the restoration work to be completed;
124.26estimated cost of restoration work; to which entity the highway will be turned back; and
124.27the total estimated cost related to all aspects of the turnback;
124.28(2) the amount that the commissioner of transportation anticipates will be needed for
124.29turnbacks during the next two fiscal years and a list of the turnbacks that will be accomplished
124.30with the anticipated funds;
125.1(3) a description of the turnback process, including an explanation of how turnback
125.2projects are selected; and
125.3(4) for each of the past five years:
125.4(i) the amount of money that accrued to the county turnback account and to the municipal
125.5turnback account;
125.6(ii) a description of each segment of highway that was restored and turned back, including
125.7what restoration work was completed; total cost of restoration work; to which entity the
125.8highway was turned back; and the total cost related to all aspects of the turnback;
125.9(iii) the amount of surplus funds, if any, that were transferred to the county state-aid
125.10highway fund or to the municipal state-aid street fund pursuant to Minnesota Statutes, section
125.11161.084; and
125.12(iv) each payment made to a local government for future restoration after the road is
125.13turned back, a description of the work to be completed with the funds, and a schedule
125.14detailing when the work was completed or will be completed.
125.15(b) By February 15, 2019, and each year thereafter, the commissioner of transportation
125.16must report to the chairs and ranking minority members of the senate and house of
125.17representatives committees having jurisdiction over transportation policy and finance
125.18concerning turnbacks. At a minimum, the report must include:
125.19(1) a current list of proposed turnback projects, including a description of each segment
125.20of highway that is to be turned back; a description of the restoration work to be completed;
125.21estimated cost of restoration work; to which entity the highway will be turned back; and
125.22the total estimated cost related to all aspects of the turnback;
125.23(2) the amount that the commissioner of transportation anticipates will be needed for
125.24turnbacks during the next two fiscal years and a list of the turnbacks that will be accomplished
125.25with the anticipated funds; and
125.26(3) for the past calendar year, a description of each segment of highway that was restored
125.27and turned back, including what restoration work was completed; total cost of restoration
125.28work; to which entity the highway was turned back; and the total cost related to all aspects
125.29of the turnback.
125.30(c) Paragraph (b) expires after the report is submitted on February 15, 2019.
125.31EFFECTIVE DATE.This section is effective the day following final enactment.

126.1    Sec. 143. WORKING GROUP FOR INTERSECTION IN WILKIN COUNTY;
126.2REPORT.
126.3(a) By September 1, 2017, the commissioner of transportation must convene a working
126.4group to consider potential options for Wilkin County Road 19 between marked Trunk
126.5Highway 55 and the railroad tracks north of marked Trunk Highway 55. The working group
126.6must consist of the commissioner, or designee, and one representative from each of the
126.7following: Minn-Dak Farmers Cooperative; the Wilkin County Board; the town board of
126.8Champion; and the city council of Nashua. By December 15, 2017, the working group must
126.9identify project options to address safety concerns of local residents at this location. For
126.10each identified project, the commissioner must include an estimated cost and the estimated
126.11date by which the project would be completed. The working group must then identify a
126.12preferred option. Based on that preferred option, the responsible parties must develop funding
126.13strategies and a delivery schedule with the goal that the project be completed by December
126.1431, 2019.
126.15(b) By January 1, 2018, the commissioner must report to the chairs, ranking minority
126.16members, and staff of the senate and house of representatives committees or divisions with
126.17jurisdiction over transportation policy and finance. The report must, at a minimum, include:
126.18a summary of the meetings held by the working group; the project options identified and
126.19the commissioner estimates associated with each option; and, if identified, the preferred
126.20option and the funding and delivery schedule for that option.

126.21    Sec. 144. METRO MOBILITY ENHANCEMENT TASK FORCE.
126.22    Subdivision 1. Task force established. A Metro Mobility Enhancement Task Force is
126.23established to examine options to enhance Metro Mobility program service under Minnesota
126.24Statutes, section 473.386. The goal of the task force is to partner with taxi services and
126.25transportation network companies, as defined in Minnesota Statutes, section 65B.472,
126.26subdivision 1, paragraph (e), to increase program service levels and efficiency.
126.27    Subd. 2. Membership. (a) The task force consists of the following members:
126.28(1) one representative from Metro Mobility, appointed by the Metropolitan Council;
126.29(2) one elected official from each metropolitan county, as defined in Minnesota Statutes,
126.30section 473.121, subdivision 4, each of whom must be from a district or unit of government
126.31that is located within the Metro Mobility service area, appointed by the respective county
126.32board in consultation with cities in that county;
127.1(3) at least one and no more than three individuals representing transportation network
127.2companies, as defined in Minnesota Statutes, section 65B.472, subdivision 1, appointed as
127.3provided under paragraph (b);
127.4(4) at least one and no more than three individuals representing taxi service providers,
127.5appointed as provided in paragraph (c);
127.6(5) one representative appointed by the Transportation Accessibility Advisory Committee
127.7established under Minnesota Statutes, section 473.375, subdivision 9a;
127.8(6) one representative appointed by the Council on Disability;
127.9(7) one individual appointed by the Association of Residential Resources of Minnesota;
127.10and
127.11(8) one individual appointed by the Center for Transportation Studies at the University
127.12of Minnesota.
127.13(b) An interested transportation network company may appoint no more than one person
127.14as a task force member. Appointment under this paragraph is on a first-come, first-appointed
127.15basis by written notification to the Metropolitan Council.
127.16(c) An interested taxi service provider may appoint no more than one person as a task
127.17force member. Appointment under this paragraph is on a first-come, first-appointed basis
127.18by written notification to the Metropolitan Council.
127.19(d) The task force members specified under paragraph (a), clauses (1), (3), and (4), are
127.20nonvoting members of the task force.
127.21    Subd. 3. Task force duties. (a) The task force must evaluate the Metro Mobility program,
127.22which must include but is not limited to analysis of customer service, program costs and
127.23expenditures, service coverage area and hours, reservation and scheduling, and buses and
127.24equipment.
127.25(b) The task force must analyze approaches to improve Metro Mobility program service
127.26by using partnerships with transportation network companies. At a minimum, the analysis
127.27must consider:
127.28(1) geographic service areas of transportation network companies;
127.29(2) demand responsiveness and service levels of transportation network companies;
127.30(3) the share of trips in which specially equipped vehicles that comply with the Americans
127.31with Disabilities Act are necessary;
128.1(4) technology accessibility for Metro Mobility customers;
128.2(5) liability considerations; and
128.3(6) integration of billing systems of transportation network companies with current Metro
128.4Mobility fare collection.
128.5(c) The task force must analyze approaches to improve Metro Mobility program service
128.6by incorporating the use of taxi service. At a minimum, the analysis must consider:
128.7(1) availability of taxi service throughout the Metro Mobility service area;
128.8(2) demand responsiveness and service levels of taxi services;
128.9(3) the share of trips in which specially equipped vehicles that comply with the Americans
128.10with Disabilities Act are necessary;
128.11(4) technology accessibility for Metro Mobility customers;
128.12(5) liability considerations;
128.13(6) options for contracting with taxi providers or other methods of billing for taxi rides;
128.14and
128.15(7) the potential to use taxi service to provide an enhanced service option where riders
128.16pay a higher fare than other users of Metro Mobility Services.
128.17(d) The task force must review proposals and models for incorporating transportation
128.18network companies and taxi service providers into transit systems in other service areas.
128.19    Subd. 4. Administration. (a) Each appointing entity under subdivision 2 must make
128.20appointments and notify the Metropolitan Council by August 1, 2017.
128.21(b) The Metropolitan Council representative appointed to the task force must convene
128.22the initial meeting of the task force no later than September 1, 2017. At the initial meeting,
128.23the members of the task force must elect a chair or cochairs from among the task force
128.24members.
128.25(c) Upon request of the task force, the council must use existing resources to provide
128.26data, information, meeting space, and administrative services.
128.27(d) Members of the task force serve without compensation or payment of expenses.
128.28(e) The task force may accept gifts and grants, which are accepted on behalf of the state
128.29and constitute donations to the Metropolitan Council. Funds received under this paragraph
128.30are appropriated to the Metropolitan Council for purposes of the task force.
129.1    Subd. 5. Legislative report. (a) By February 15, 2018, the task force must submit a
129.2report to the chairs and ranking minority members of the legislative committees with
129.3jurisdiction over transportation policy and finance.
129.4(b) At a minimum the report must:
129.5(1) summarize the work of the task force and its findings;
129.6(2) describe the current Metro Mobility program;
129.7(3) identify at least three potential service level approaches that involve partnering with
129.8and incorporating transportation network companies, taxi service providers, or both; and
129.9(4) provide any recommendations for program and legislative changes.
129.10    Subd. 6. Expiration. The task force under this section expires February 15, 2018, or
129.11upon submission of the report required under subdivision 5, whichever is earlier.

129.12    Sec. 145. LEGISLATIVE ROUTE NO. 123 REMOVED.
129.13(a) Minnesota Statutes, section 161.115, subdivision 54, is repealed effective the day
129.14after the commissioner of transportation receives a copy of the agreement between the
129.15commissioner and the governing body of Le Sueur County to transfer jurisdiction of
129.16Legislative Route No. 123 and after the commissioner notifies the revisor of statutes under
129.17paragraph (b).
129.18(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota
129.19Statutes when the commissioner of transportation sends notice to the revisor electronically
129.20or in writing that the conditions required to transfer the route have been satisfied.

129.21    Sec. 146. LEGISLATIVE ROUTE NO. 225 REMOVED.
129.22(a) Minnesota Statutes, section 161.115, subdivision 156, is repealed effective the day
129.23after the commissioner of transportation receives a copy of the agreement between the
129.24commissioner and the governing body of Becker County to transfer jurisdiction of Legislative
129.25Route No. 225 and after the commissioner notifies the revisor of statutes under paragraph
129.26(b).
129.27(b) The revisor of statutes shall delete the route identified in paragraph (a) from Minnesota
129.28Statutes when the commissioner of transportation sends notice to the revisor electronically
129.29or in writing that the conditions required to transfer the route have been satisfied.

130.1    Sec. 147. REVISOR'S INSTRUCTION.
130.2The revisor of statutes shall recodify Minnesota Statutes, section 174.93, as Minnesota
130.3Statutes, section 473.4485. The revisor shall correct any cross-references made necessary
130.4by the recodification.

130.5    Sec. 148. REPEALER.
130.6(a) Minnesota Statutes 2016, sections 160.262, subdivision 2; 160.265; and 160.266,
130.7subdivisions 1 and 2, are repealed.
130.8(b) Minnesota Statutes 2016, section 161.115, subdivision 32, is repealed.
130.9(c) Minnesota Statutes 2016, sections 165.15, subdivision 8; and 219.375, subdivision
130.104, are repealed.
130.11(d) Minnesota Statutes 2016, section 169.4502, subdivision 5, is repealed.
130.12(e) Minnesota Rules, parts 8810.0800, subpart 3; and 8810.1300, subpart 4, are repealed.
130.13(f) Minnesota Rules, parts 8810.6000; 8810.6100; 8810.6300; 8810.6400; 8810.6500;
130.148810.6600; 8810.6700; 8810.6800; 8810.6900; 8810.7000; 8810.9910; 8810.9911;
130.158810.9912; and 8810.9913, are repealed.
130.16(g) Laws 1994, chapter 628, article 1, section 8, is repealed.
130.17EFFECTIVE DATE.Paragraph (g) is effective January 1, 2019, and applies in the
130.18counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington."
130.19Delete the title and insert:
130.20"A bill for an act
130.21relating to transportation finance; establishing a budget for transportation;
130.22appropriating money for transportation purposes, including Department of
130.23Transportation, Metropolitan Council, and Department of Public Safety activities;
130.24modifying various provisions governing transportation policy and finance;
130.25allocating certain sales and use tax revenue; establishing accounts; requiring reports;
130.26making technical changes; authorizing sale and issuance of state bonds;amending
130.27Minnesota Statutes 2016, sections 15A.0815, subdivision 3; 53C.01, subdivision
130.282; 85.016; 116.03, by adding a subdivision; 117.189; 160.02, subdivision 27, by
130.29adding subdivisions; 160.18, by adding a subdivision; 160.262, subdivisions 1, 3,
130.304; 160.266, subdivisions 3, 4, 5, by adding subdivisions; 161.04, subdivision 5;
130.31161.081, subdivision 3; 161.088, subdivisions 4, 5, 7; 161.115, subdivision 190;
130.32161.14, by adding subdivisions; 161.21, subdivision 1; 161.321, subdivision 6;
130.33161.38, by adding a subdivision; 161.44, subdivisions 5, 6a, by adding a
130.34subdivision; 168.013, subdivision 1a, by adding a subdivision; 168.021,
130.35subdivisions 1, 2, 2a; 168.27, by adding a subdivision; 168.33, subdivision 2;
130.36168A.09, subdivision 1; 168A.141; 168A.142; 169.011, subdivision 34, by adding
130.37a subdivision; 169.14, by adding a subdivision; 169.18, subdivisions 5, 7; 169.345,
130.38subdivisions 1, 3; 169.442, subdivision 5; 169.443, subdivision 2; 169.444,
130.39subdivision 2; 169.449, subdivision 1; 169.4501, subdivisions 1, 2; 169.4503,
131.1subdivisions 4, 7, 14, 23, 30; 169.64, subdivision 8; 169.80, subdivision 1; 169.829,
131.2by adding a subdivision; 169.865, subdivision 3; 169.871, subdivision 1; 171.02,
131.3subdivision 2b; 171.06, subdivision 2a; 171.061, subdivision 3; 171.12, subdivision
131.46; 173.02, subdivisions 18, 23, by adding subdivisions; 173.06, subdivision 1;
131.5173.07, subdivision 1; 173.08, by adding subdivisions; 173.13, subdivision 11;
131.6173.16, by adding subdivisions; 174.03, subdivisions 1a, 1c; 174.50, subdivisions
131.75, 6b, 6c, 7; 174.56, by adding a subdivision; 174.93; 221.031, by adding a
131.8subdivision; 222.49; 222.50, subdivision 6; 256B.15, subdivision 1a; 297A.815,
131.9subdivision 3; 297A.94; 297A.992, by adding a subdivision; 297B.01, subdivision
131.1016; 299D.03, subdivision 6; 398A.10, subdivisions 3, 4; 473.121, subdivision 2;
131.11473.123; 473.146, subdivisions 3, 4; 473.388, subdivision 4; 473.39, by adding a
131.12subdivision; 473.3994, by adding a subdivision; 473.4051, subdivision 2; 473.857,
131.13subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 160;
131.14168; 168A; 169; 173; 174; 219; repealing Minnesota Statutes 2016, sections
131.15160.262, subdivision 2; 160.265; 160.266, subdivisions 1, 2; 161.115, subdivision
131.1632; 165.15, subdivision 8; 169.4502, subdivision 5; 219.375, subdivision 4; Laws
131.171994, chapter 628, article 1, section 8; Minnesota Rules, parts 8810.0800, subpart
131.183; 8810.1300, subpart 4; 8810.6000; 8810.6100; 8810.6300; 8810.6400; 8810.6500;
131.198810.6600; 8810.6700; 8810.6800; 8810.6900; 8810.7000; 8810.9910; 8810.9911;
131.208810.9912; 8810.9913."
132.1
We request the adoption of this report and repassage of the bill.
132.2
House Conferees:
132.3
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132.4
Paul Torkelson
Linda Runbeck
132.5
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132.6
John Petersburg
Jon Koznick
132.7
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132.8
Jeff Howe
132.9
Senate Conferees:
132.10
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132.11
Scott J. Newman
John Jasinski
132.12
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132.13
Mary Kiffmeyer
David J. Osmek
132.14
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132.15
Dan Sparks