HF 946

1st Committee Engrossment - 85th Legislature (2007 - 2008) Posted on 12/22/2009 12:38pm

A bill for an act
relating to transportation finance; appropriating money for transportation,
Metropolitan Council, and public safety activities; providing for fund transfers,
general contingent accounts, and tort claims; authorizing sale and issuance of
trunk highway bonds for highways and transit facilities; modifying motor fuels
and registration taxes; allocating motor vehicle sales tax revenue; modifying
county state-aid allocation formula; modifying county wheelage tax; authorizing
local transportation sales and use taxes; modifying provisions relating to various
transportation-related funds and accounts; modifying fees for license plates,
drivers' licenses, identification cards, and state patrol escort and flight services;
making technical and clarifying changes; amending Minnesota Statutes 2006,
sections 16A.88; 161.04, subdivision 3, by adding a subdivision; 162.06; 162.07,
subdivision 1, by adding subdivisions; 163.051; 168.011, subdivision 6; 168.013,
subdivisions 1, 1a; 168.017, subdivision 3; 168.12, subdivision 5; 168A.29,
subdivision 1; 171.02, subdivision 3; 171.06, subdivision 2; 171.07, subdivisions
3a, 11; 171.20, subdivision 4; 296A.07, subdivision 3; 296A.08, subdivision 2;
297A.94; 297B.09, subdivision 1; 299D.09; 473.388, subdivision 4; 473.446,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter
297A; repealing Minnesota Statutes 2006, section 174.32.

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

ARTICLE 1

TRANSPORTATION APPROPRIATIONS

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

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

		new text begin 2008 new text end		new text begin 2009 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 123,387,000 new text end	new text begin $ new text end	new text begin 106,734,000 new text end	new text begin $ new text end	new text begin 230,121,000 new text end
new text begin Special Revenue new text end		new text begin 47,950,000 new text end		new text begin 49,038,000 new text end		new text begin 96,988,000 new text end
new text begin Trunk Highway new text end		new text begin 1,164,253,000 new text end		new text begin 1,466,021,000 new text end		new text begin 2,630,274,000 new text end
new text begin Airports new text end		new text begin 25,524,000 new text end		new text begin 25,592,000 new text end		new text begin 51,116,000 new text end
new text begin M.S.A.S. new text end		new text begin 130,521,000 new text end		new text begin 152,066,000 new text end		new text begin 282,587,000 new text end
new text begin C.S.A.H. new text end		new text begin 484,975,000 new text end		new text begin 566,506,000 new text end		new text begin 1,051,481,000 new text end
new text begin H.U.T.D. new text end		new text begin 8,938,000 new text end		new text begin 9,238,000 new text end		new text begin 18,176,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 1,985,548,000 new text end	new text begin $ new text end	new text begin 2,375,195,000 new text end	new text begin $ new text end	new text begin 4,360,743,000 new text end

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

new text begin The sums shown in the columns marked "Appropriations" are appropriated to
the agencies and for the purposes specified in this article. The appropriations are from
the trunk highway fund, or another named fund, and are available for the fiscal years
indicated for each purpose. The figures "2008" and "2009" used in this article mean that
the appropriations listed under them are available for the fiscal year ending June 30, 2008,
or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is
fiscal year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the
fiscal year ending June 30, 2007, are effective the day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2008 new text end		new text begin 2009 new text end

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

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

new text begin $ new text end

new text begin 1,743,337,000 new text end

new text begin $ new text end

new text begin 2,143,408,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 19,830,000 new text end	new text begin 19,239,000 new text end
new text begin Trunk Highway new text end	new text begin 1,082,537,000 new text end	new text begin 1,380,055,000 new text end
new text begin Airports new text end	new text begin 25,474,000 new text end	new text begin 25,542,000 new text end
new text begin C.S.A.H. new text end	new text begin 484,975,000 new text end	new text begin 566,506,000 new text end
new text begin M.S.A.S. new text end	new text begin 130,521,000 new text end	new text begin 152,066,000 new text end

new text begin (a) This appropriation is to the commissioner
of transportation. The amounts that may be
spent for each purpose are specified in the
following subdivisions.
new text end

new text begin (b) Of this amount, $165,385,000 the first
year and $332,750,000 the second year are
from additional revenue from changes by this
act to the gasoline and special fuels excise
taxes, Minnesota Statutes, sections 296A.07,
subdivision 3, and 296A.08, subdivision 2.
new text end

new text begin (c) Of this amount, $15,415,000 the first
year and $59,907,000 the second year are
from additional revenue from changes by
this act to the motor vehicle registration
tax, Minnesota Statutes, section 168.013,
subdivision 1a.
new text end

new text begin (d) Of the amount from the general fund,
$9,000 the first year and $18,000 the second
year are for compensation adjustments.
new text end

new text begin (e) Of the amount from the state airports
fund, $66,000 the first year and $134,000
the second year are for compensation
adjustments.
new text end

new text begin (f) Of the amount from the trunk highway
fund, $6,138,000 the first year and
$12,399,000 the second year are for
compensation adjustments.
new text end

new text begin Subd. 2. new text end new text begin Airport development and assistance new text end

new text begin 20,298,000 new text end

new text begin 20,298,000 new text end

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

new text begin (b) $6,000,000 the first year is a onetime
appropriation and $6,000,000 the second
year is a onetime appropriation.
new text end

new text begin (c) Notwithstanding Minnesota Statutes,
section 16A.28, subdivision 6, this
appropriation is available for five years after
appropriation.
new text end

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

new text begin Subd. 3. new text end new text begin Aviation support and services new text end

new text begin 5,998,000 new text end

new text begin 6,075,000 new text end

new text begin Appropriations by Fund new text end
new text begin Trunk Highway new text end	new text begin 847,000 new text end	new text begin 856,000 new text end
new text begin Airports new text end	new text begin 5,151,000 new text end	new text begin 5,219,000 new text end

new text begin $65,000 the first year and $65,000 the second
year are for the Civil Air Patrol.
new text end

new text begin Subd. 4. new text end new text begin Transit new text end

new text begin 19,545,000 new text end

new text begin 19,561,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 18,812,000 new text end	new text begin 18,814,000 new text end
new text begin Trunk Highway new text end	new text begin 733,000 new text end	new text begin 747,000 new text end

new text begin The commissioner of transportation may
spend up to $5,000,000 from July 1, 2009,
through June 30, 2013, in federal transit
funds for capital assistance to public transit
systems under Minnesota Statutes, section
174.24. This amount is in addition to any
appropriations made by law for this purpose.
new text end

new text begin Subd. 5. new text end new text begin Freight new text end

new text begin 5,337,000 new text end

new text begin 5,431,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 353,000 new text end	new text begin 360,000 new text end
new text begin Trunk Highway new text end	new text begin 4,984,000 new text end	new text begin 5,071,000 new text end

new text begin Subd. 6. new text end new text begin Infrastructure operations and maintenance new text end

new text begin 245,138,000 new text end

new text begin 277,821,000 new text end

new text begin The commissioner of transportation shall
reopen when feasible the Culkin safety rest
area, located on marked Interstate Highway
35.
new text end

new text begin Subd. 7. new text end new text begin Infrastructure investment support new text end

new text begin 191,317,000 new text end

new text begin 218,115,000 new text end

new text begin (a) $266,000 the first year and $266,000
the second year are available for grants to
metropolitan planning organizations outside
the seven-county metropolitan area.
new text end

new text begin (b) $75,000 the first year and $75,000
the second year are for a transportation
research contingent account to finance
research projects that are reimbursable
from the federal government or from other
sources. If the appropriation for either year
is insufficient, the appropriation for the other
year is available for it.
new text end

new text begin (c) $600,000 the first year and $600,000
the second year are available for grants
for transportation-related activities outside
the metropolitan area to identify critical
concerns, problems, and issues. These grants
are available:
new text end

new text begin (1) to regional development commissions;
new text end

new text begin (2) in regions where no regional development
commission is functioning, to joint powers
boards established under agreement of two or
more political subdivisions in the region to
exercise the planning functions of a regional
development commission; and
new text end

new text begin (3) in regions where no regional development
commission or joint powers board is
functioning, to the department's district office
for that region.
new text end

new text begin (d) $5,000,000 is for a pilot project to
demonstrate technologies that will allow for
the future replacement of the gas tax with a
fuel-neutral mileage charge.
new text end

new text begin Subd. 8. new text end new text begin State road construction new text end

new text begin 518,599,000 new text end

new text begin 738,585,000 new text end

new text begin (a) It is estimated that this appropriation will
be funded as follows:
new text end

new text begin Federal Highway Aid new text end	new text begin 193,500,000 new text end	new text begin 350,400,000 new text end
new text begin Highway User Taxes new text end	new text begin 325,099,000 new text end	new text begin 385,185,000 new text end

new text begin (b) This appropriation is for the actual
construction, reconstruction, and
improvement of trunk highways, including
design-build contracts and consultant usage
to support these activities. This includes the
cost of actual payment to landowners for
lands acquired for highway rights-of-way,
payment to lessees, interest subsidies, and
relocation expenses.
new text end

new text begin (c) The commissioner of transportation shall
notify the chair of the Transportation Budget
Division of the senate and the chair of the
Transportation Finance Division of the house
of representatives of any significant events
that should cause the estimates in paragraph
(a) to change.
new text end

new text begin (d) $77,000,000 the second year is a onetime
appropriation that is shifted from the first
year. It does not subtract from the base
appropriation in the first year or add to the
base appropriation in the second year.
new text end

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

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

new text begin Subd. 9. new text end new text begin Highway debt service new text end

new text begin 57,972,000 new text end

new text begin 75,254,000 new text end

new text begin $54,312,000 the first year and $66,175,000
the second year are for transfer to the state
bond fund. If this appropriation is insufficient
to make all transfers required in the year for
which it is made, the commissioner of finance
shall notify the Committee on Finance of
the senate and the Committee on Ways and
Means of the house of representatives of
the amount of the deficiency and shall then
transfer that amount under the statutory open
appropriation. Any excess appropriation
cancels to the trunk highway fund.
new text end

new text begin Subd. 10. new text end new text begin Electronic communications new text end

new text begin 5,117,000 new text end

new text begin 5,202,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 9,000 new text end	new text begin 9,000 new text end
new text begin Trunk Highway new text end	new text begin 5,108,000 new text end	new text begin 5,193,000 new text end

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

new text begin Subd. 11. new text end new text begin County state-aids new text end

new text begin 484,975,000 new text end

new text begin 566,506,000 new text end

new text begin This appropriation is from the county
state-aid highway fund and is available until
spent.
new text end

new text begin Subd. 12. new text end new text begin Municipal state-aids new text end

new text begin 130,521,000 new text end

new text begin 152,066,000 new text end

new text begin (a) This appropriation is from the municipal
state-aid street fund and is available until
spent.
new text end

new text begin (b) If an appropriation for either county
state aids or municipal state aids does not
exhaust the balance in the fund from which
it is made in the year for which it is made,
the commissioner of finance, upon request
of the commissioner of transportation, shall
notify the chair of the Transportation Finance
Division of the house of representatives
and the chair of the Transportation Budget
Division of the senate of the amount of the
remainder and shall then add that amount
to the appropriation. The amount added is
appropriated for the purposes of county state
aids or municipal state aids, as appropriate.
new text end

new text begin (c) If the appropriation for either county state
aids or municipal state aids does exhaust
the balance in the fund from which it is
made in the year for which it is made, the
commissioner of finance shall notify the chair
of the Transportation Finance Division of the
house of representatives and the chair of the
Transportation Budget Division of the senate
of the amount by which the appropriation
exceeds the balance and shall then reduce
that amount from the appropriation.
new text end

new text begin Subd. 13. new text end new text begin Town road sign replacement program new text end

new text begin 600,000 new text end

new text begin 0 new text end

new text begin This appropriation is from the general fund
to the commissioner of transportation to
implement the town road sign replacement
program established in Laws 2005, First
Special Session chapter 6, article 3, section
89. For the purpose of this appropriation,
implementation includes the purchase and
installation of new signs. This appropriation
may be used to satisfy any local matching
requirement for the receipt of federal funds.
Designated funds not allocated by July 1,
2009, cancel and revert to the general fund.
new text end

new text begin Subd. 14. new text end new text begin Flexible highway account transfers new text end

new text begin The commissioner of finance shall transfer
from the flexible account in the county
state-aid highway fund $5,950,000 the first
year and $2,820,000 the second year to the
municipal turnback account in the municipal
state-aid street fund and $12,940,000 the first
year and $15,330,000 the second year to the
trunk highway fund; and the remainder in
each year to the county turnback account in
the county state-aid highway fund.
new text end

new text begin Subd. 15. new text end new text begin Department support new text end

new text begin 40,559,000 new text end

new text begin 41,090,000 new text end

new text begin Appropriations by Fund new text end
new text begin Trunk Highway new text end	new text begin 40,534,000 new text end	new text begin 41,065,000 new text end
new text begin Airports new text end	new text begin 25,000 new text end	new text begin 25,000 new text end

new text begin Subd. 16. new text end new text begin Buildings new text end

new text begin 17,361,000 new text end

new text begin 17,403,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 56,000 new text end	new text begin 56,000 new text end
new text begin Trunk Highway new text end	new text begin 17,305,000 new text end	new text begin 17,347,000 new text end

new text begin Subd. 17. new text end new text begin Transfers new text end

new text begin (a) With the approval of the commissioner of
finance, the commissioner of transportation
may transfer unencumbered balances among
the appropriations from the trunk highway
fund and the state airports fund made in this
section. No transfer may be made from the
appropriation for state road construction. No
transfer may be made from the appropriations
for debt service to any other appropriation.
Transfers under this paragraph may not be
made between funds. Transfers between
programs must be reported immediately
to the chair of the Transportation Budget
Division of the senate and the chair of the
Transportation Finance Committee of the
house of representatives.
new text end

new text begin (b) On or after July 1, 2007, the commissioner
of finance shall:
new text end

new text begin (1) transfer $4,600,000 from the trunk
highway revolving loan account in the
transportation revolving loan fund to the
trunk highway fund; and
new text end

new text begin (2) transfer $1,221,000 from the general fund
to the trunk highway fund, to reimburse the
fund for transfer of trunk highway land to the
city of Mounds View.
new text end

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

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

new text begin $ new text end

new text begin 78,753,000 new text end

new text begin $ new text end

new text begin 78,753,000 new text end

new text begin (a) This appropriation is to the metropolitan
council from the general fund.
new text end

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

new text begin Subd. 2. new text end new text begin Bus transit new text end

new text begin 73,453,000 new text end

new text begin 73,453,000 new text end

new text begin This appropriation is for bus system
operations.
new text end

new text begin Subd. 3. new text end new text begin Rail operations new text end

new text begin 5,300,000 new text end

new text begin 5,300,000 new text end

new text begin (a) This appropriation is for operations of the
Hiawatha light rail transit line.
new text end

new text begin (b) This appropriation is for paying a portion
of the Metropolitan Council's 50 percent
share of operating costs for the Hiawatha
light rail transit line after operating revenue
and federal funds are used for light rail
transit operations. The remaining 50 percent
share of operating costs are to be paid by the
Hennepin County Regional Rail Authority,
using any or all of these sources:
new text end

new text begin (1) general tax revenues of Hennepin County;
new text end

new text begin (2) the authority's reserves; and
new text end

new text begin (3) taxes levied under Minnesota
Statutes, section 398A.04, subdivision
8, notwithstanding any provision in that
subdivision that limits amounts that may be
levied for light rail transit purposes.
new text end

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

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

new text begin $ new text end

new text begin 145,470,000 new text end

new text begin $ new text end

new text begin 151,267,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 7,791,000 new text end	new text begin 7,950,000 new text end
new text begin Special Revenue new text end	new text begin 47,950,000 new text end	new text begin 49,038,000 new text end
new text begin Trunk Highway new text end	new text begin 80,916,000 new text end	new text begin 85,166,000 new text end
new text begin H.U.T.D. new text end	new text begin 8,813,000 new text end	new text begin 9,113,000 new text end

new text begin (a) This appropriation is to the commissioner
of public safety. The amounts that may be
spent for each purpose are specified in the
following subdivisions.
new text end

new text begin (b) Of the amount from the general fund,
$133,000 the first year and $206,000
the second year are for compensation
adjustments.
new text end

new text begin (c) Of the amount from the trunk
highway fund, $4,072,000 the first year
and $6,729,000 the second year are for
compensation adjustments.
new text end

new text begin (d) Of the amount from the special revenue
fund, $57,000 the first year and $105,000
the second year are for compensation
adjustments.
new text end

new text begin Subd. 2. new text end new text begin Office of communications new text end

new text begin 402,000 new text end

new text begin 417,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 39,000 new text end	new text begin 40,000 new text end
new text begin Trunk Highway new text end	new text begin 363,000 new text end	new text begin 377,000 new text end

new text begin Subd. 3. new text end new text begin Public safety support new text end

new text begin 7,942,000 new text end

new text begin 8,122,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,245,000 new text end	new text begin 3,336,000 new text end
new text begin Trunk Highway new text end	new text begin 3,331,000 new text end	new text begin 3,420,000 new text end
new text begin H.U.T.D. new text end	new text begin 1,366,000 new text end	new text begin 1,366,000 new text end

new text begin (a) Of the amount from the general fund,
$110,000 the first year is a onetime
appropriation and $28,000 the second year
is a onetime appropriation for a security
coordinator to coordinate planning efforts for
the Republican National Convention.
new text end

new text begin (b) $380,000 the first year and $380,000
the second year are for payment of public
safety officer survivor benefits under
Minnesota Statutes, section 299A.44. If the
appropriation for either year is insufficient,
the appropriation for the other year is
available for it.
new text end

new text begin (c) $1,199,000 the first year and $1,367,000
the second year are to be deposited in the
public safety officer's benefit account. This
money is available for reimbursements under
Minnesota Statutes, section 299A.465.
new text end

new text begin (d) $508,000 the first year and $508,000
the second year are for soft body armor
reimbursements under Minnesota Statutes,
section .
new text end

new text begin (e) $792,000 the first year and $792,000
the second year are appropriated from the
general fund for transfer by the commissioner
of finance to the trunk highway fund on
December 31, 2007, and December 31, 2008,
respectively, in order to reimburse the trunk
highway fund for expenses not related to the
fund. These represent amounts appropriated
out of the trunk highway fund for general
fund purposes in the administration and
related services program.
new text end

new text begin (f) $610,000 the first year and $610,000
the second year are appropriated from
the highway user tax distribution fund for
transfer by the commissioner of finance to
the trunk highway fund on December 31,
2007, and December 31, 2008, respectively,
in order to reimburse the trunk highway
fund for expenses not related to the fund.
These represent amounts appropriated out
of the trunk highway fund for highway
user tax distribution fund purposes in the
administration and related services program.
new text end

new text begin (g) $716,000 the first year and $716,000
the second year are appropriated from
the highway user tax distribution fund for
transfer by the commissioner of finance to
the general fund on December 31, 2007, and
December 31, 2008, respectively, in order to
reimburse the general fund for expenses not
related to the fund. These represent amounts
appropriated out of the general fund for
operation of the criminal justice data network
related to driver and motor vehicle licensing.
new text end

new text begin Subd. 4. new text end new text begin Technical support services new text end

new text begin 3,870,000 new text end

new text begin 3,870,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,507,000 new text end	new text begin 1,507,000 new text end
new text begin Trunk Highway new text end	new text begin 2,344,000 new text end	new text begin 2,344,000 new text end
new text begin H.U.T.D. new text end	new text begin 19,000 new text end	new text begin 19,000 new text end

new text begin Of the amount from the general fund,
$1,416,000 the first year and $1,416,000
the second year are for information systems
security and disaster recovery.
new text end

new text begin Subd. 5. new text end new text begin Patrolling highways new text end

new text begin 67,626,000 new text end

new text begin 71,522,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 37,000 new text end	new text begin 37,000 new text end
new text begin Trunk Highway new text end	new text begin 67,497,000 new text end	new text begin 71,393,000 new text end
new text begin H.U.T.D. new text end	new text begin 92,000 new text end	new text begin 92,000 new text end

new text begin (a) Of the amount from the trunk highway
fund, $2,060,000 the first year and
$3,653,000 the second year are for 40
additional state patrol troopers under this
subdivision and subdivision 6.
new text end

new text begin (b) Of the amount from the trunk highway
fund, $1,335,000 the first year and
$1,335,000 the second year are for fuel costs
under this subdivision and subdivision 6.
new text end

new text begin Subd. 6. new text end new text begin Commercial vehicle enforcement new text end

new text begin 6,945,000 new text end

new text begin 7,196,000 new text end

new text begin Subd. 7. new text end new text begin Capitol security new text end

new text begin 2,963,000 new text end

new text begin 3,030,000 new text end

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

new text begin Subd. 8. new text end new text begin Vehicle services new text end

new text begin 26,032,000 new text end

new text begin 26,609,000 new text end

new text begin Appropriations by Fund new text end
new text begin Special Revenue new text end	new text begin 18,696,000 new text end	new text begin 18,973,000 new text end
new text begin H.U.T.D. new text end	new text begin 7,336,000 new text end	new text begin 7,636,000 new text end

new text begin (a) The base appropriation from the highway
user tax distribution fund is $7,936,000 for
fiscal year 2010 and $8,236,000 for fiscal
year 2011.
new text end

new text begin (b) The special revenue fund appropriation is
from the vehicle services operating account.
new text end

new text begin (c) Of the amount from the special revenue
fund, $47,000 the first year and $45,000 the
second year are for a driver license and motor
vehicle records contract coordinator.
new text end

new text begin Subd. 9. new text end new text begin Driver services new text end

new text begin 27,940,000 new text end

new text begin 28,712,000 new text end

new text begin Appropriations by Fund new text end
new text begin Special Revenue new text end	new text begin 27,939,000 new text end	new text begin 28,711,000 new text end
new text begin Trunk Highway new text end	new text begin 1,000 new text end	new text begin 1,000 new text end

new text begin (a) The special revenue fund appropriation is
from the driver services operating account.
new text end

new text begin (b) Of the amount from the special revenue
fund, $25,000 the first year and $23,000 the
second year are for a driver license and motor
vehicle records contract coordinator.
new text end

new text begin Subd. 10. new text end new text begin Traffic safety new text end

new text begin 435,000 new text end

new text begin 435,000 new text end

new text begin (a) Of this amount, $111,000 the first
year and $111,000 the second year are
for planning and administration of grants
from the National Highway Traffic Safety
Administration.
new text end

new text begin (b) The commissioner of public safety shall
spend 50 percent of the money available
to the state under Public Law 105-206,
section 164, and the remaining 50 percent
must be transferred to the commissioner
of transportation for hazard elimination
activities under United States Code, title 23,
section 152.
new text end

new text begin Subd. 11. new text end new text begin Pipeline safety new text end

new text begin 1,315,000 new text end

new text begin 1,354,000 new text end

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

new text begin (b) Of this amount, $264,000 the first year
and $255,000 the second year are for an
increase in funding to carry out the pipeline
safety inspection program.
new text end

Sec. 6. new text begin GENERAL CONTINGENT ACCOUNTS. new text end

new text begin $ new text end

new text begin 375,000 new text end

new text begin $ new text end

new text begin 375,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin Airports new text end	new text begin 50,000 new text end	new text begin 50,000 new text end
new text begin Trunk Highway new text end	new text begin 200,000 new text end	new text begin 200,000 new text end
new text begin H.U.T.D. new text end	new text begin 125,000 new text end	new text begin 125,000 new text end

new text begin (a) The appropriations in this section
may only be spent with the approval of
the governor after consultation with the
Legislative Advisory Commission under
Minnesota Statutes, section 3.30.
new text end

new text begin (b) If an appropriation in this section for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

Sec. 7. new text begin TORT CLAIMS. new text end

new text begin $ new text end

new text begin 600,000 new text end

new text begin $ new text end

new text begin 600,000 new text end

new text begin (a) This appropriation is to the commissioner
of finance.
new text end

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

Sec. 8. new text begin CONTINGENT TRUNK HIGHWAY APPROPRIATION.
new text end

new text begin The commissioner of transportation, with the approval of the governor after
review by the Legislative Advisory Commission under Minnesota Statutes, section 3.30,
may transfer all or part of the unappropriated balance in the trunk highway fund to an
appropriation (1) for trunk highway design, construction, or inspection in order to take
advantage of an unanticipated receipt of income to the trunk highway fund or to take
advantage of federal advanced construction funding, (2) for trunk highway maintenance
in order to meet an emergency, or (3) to pay tort or environmental claims. Any transfer
as a result of the use of federal advanced construction funding must include an analysis
of the effects on the long-term trunk highway fund balance. The amount transferred is
appropriated for the purpose of the account to which it is transferred.
new text end

Sec. 9. new text begin USE OF STATE ROAD CONSTRUCTION APPROPRIATIONS.
new text end

new text begin Any money appropriated to the commissioner of transportation for state road
construction for any fiscal year before fiscal year 2008 is available to the commissioner
during fiscal years 2008 and 2009 to the extent that the commissioner spends the money
on the state road construction project for which the money was originally encumbered
during the fiscal year for which it was appropriated. The commissioner of transportation
shall report to the commissioner of finance by August 1, 2007, and August 1, 2008, on a
form the commissioner of finance provides, on expenditures made during the previous
fiscal year that are authorized by this section.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Except as specifically provided otherwise, this article is effective July 1, 2007.
new text end

ARTICLE 2

TRUNK HIGHWAY BONDS

Section 1. new text begin TRUNK HIGHWAY BOND APPROPRIATIONS. new text end

new text begin The sums shown in the column under "APPROPRIATIONS" are appropriated from
the bond proceeds account in the trunk highway fund, or another named fund, to the state
agencies or officials indicated, to be spent for public purposes. Appropriations of bond
proceeds must be spent as authorized by the Minnesota Constitution, article XIV.
new text end

new text begin SUMMARY new text end
new text begin Transportation new text end	new text begin $ new text end	new text begin 1,000,000,000 new text end
new text begin Bond Sale Expenses new text end	new text begin $ new text end	new text begin 1,000,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 1,001,000,000 new text end

new text begin APPROPRIATIONS new text end

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

new text begin $ new text end

new text begin 1,000,000,000 new text end

new text begin (a) $100,000,000 is appropriated on the
first day of fiscal years 2008 to 2017 to
the commissioner of transportation, for
the actual construction, reconstruction,
and improvement of trunk highways. This
includes the cost of actual payments to
landowners for lands acquired for highway
rights-of-way, payments to lessees, interest
subsidies, and relocation expenses.
new text end

new text begin (b) The commissioner of transportation may
use up to $170,000,000 of this appropriation
for program delivery.
new text end

new text begin (c) The commissioner shall use at least
$50,000,000 of this appropriation for
accelerating transit facility improvements on
or adjacent to trunk highways.
new text end

Sec. 3. new text begin BOND SALE EXPENSES. new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin This appropriation is to the commissioner
of finance for bond sale expenses under
Minnesota Statutes, sections 16A.641,
subdivision 8, and 167.50, subdivision 4.
new text end

Sec. 4. new text begin BOND SALE AUTHORIZATION.
new text end

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

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Except as specifically provided otherwise, this article is effective July 1, 2007.
new text end

ARTICLE 3

HIGHWAY USER TAXES

Section 1.

Minnesota Statutes 2006, section 16A.88, is amended to read:

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

Subdivision 1.

new text begin Transit assistance fund. new text end

new text begin A transit assistance fund is established
within the state treasury. The fund receives money distributed under section 297B.09,
subdivision 1, and other money as specified by law. Money in the fund must be allocated
to the greater Minnesota transit account under subdivision 2 and the metropolitan area
transit account under subdivision 3 in the manner specified, and must be used solely for
transit purposes under the Minnesota Constitution, article XIV, section 13.
new text end

new text begin Subd. 1a. new text end

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

The greater Minnesota transit
deleted text begin fund deleted text end new text begin account new text end is established within the new text begin transit assistance fund in the new text end state treasury. Money
in the deleted text begin fund deleted text end new text begin account new text end is annually appropriated to the commissioner of transportation for
assistance to transit systems outside the metropolitan area under section 174.24. deleted text begin Beginning
in fiscal year 2003, deleted text end The commissioner may use up to deleted text begin $400,000 each year deleted text end new text begin $408,000 in
fiscal year 2008 and $416,000 in fiscal year 2009 and thereafter new text end for administration of the
transit program. The commissioner shall use the deleted text begin fund deleted text end new text begin account new text end for transit operations as
provided in section 174.24 and related program administration.

Subd. 2.

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

The metropolitan area transit
deleted text begin fund deleted text end new text begin account new text end is established within the new text begin transit assistance fund in the new text end state treasury. All
money in the deleted text begin fund deleted text end new text begin account new text end is annually appropriated to the Metropolitan Council for the
funding of transit systems within the metropolitan area under sections 473.384, new text begin 473.386, new text end
473.387, 473.388, and 473.405 to 473.449.

deleted text begin Subd. 3. deleted text end

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 2.

Minnesota Statutes 2006, section 168.013, subdivision 1a, is amended to read:

Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined
in section 168.011, subdivision 7, and hearses, except as otherwise provided, the tax shall
be $10 plus an additional tax equal to 1.25 percent of the base value.

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

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

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

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

	FROM		TO
	$ . 0		$ . 199.99
	200		399.99

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

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

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

(h) The annual additional tax computed upon the base value as provided herein,
during the first deleted text begin and second years deleted text end new text begin year new text end of vehicle life shall be computed upon 100 percent
of the base value; new text begin for the second year, 80 percent of such value; new text end for the third deleted text begin and fourth
years deleted text end new text begin year new text end , deleted text begin 90 deleted text end new text begin 70 new text end percent of such value; new text begin for the fourth year, 60 percent of such value; new text end for
the fifth deleted text begin and sixth years deleted text end new text begin year new text end , deleted text begin 75 deleted text end new text begin 50 new text end percent of such value; new text begin for the sixth year, 40 percent
of such value; new text end for the seventh year, deleted text begin 60 deleted text end new text begin 35 new text end percent of such value; for the eighth year, deleted text begin 40 deleted text end
new text begin 30 new text end percent of such value; for the ninth year, deleted text begin 30 deleted text end new text begin 20 new text end percent of such value; for the tenth year,
ten percent of such value; for the 11th and each succeeding year, the sum of $25.

In no event shall the annual additional tax be less than $25. deleted text begin The total tax under this
subdivision shall not exceed $189 for the first renewal period and shall not exceed $99
for subsequent renewal periods. The total tax under this subdivision on any vehicle filing
its initial registration in Minnesota in the second year of vehicle life shall not exceed
$189 and shall not exceed $99 for subsequent renewal periods. The total tax under
this subdivision on any vehicle filing its initial registration in Minnesota in the third or
subsequent year of vehicle life shall not exceed $99 and shall not exceed $99 in any
subsequent renewal period deleted text end new text begin The annual additional tax under this paragraph must not exceed
the annual additional tax that was previously paid or due on that vehicle new text end .

deleted text begin (i) As used in this subdivision and section , the following terms have the
meanings given: "initial registration" means the 12 consecutive months calendar period
from the day of first registration of a vehicle in Minnesota; and "renewal periods" means
the 12 consecutive calendar months periods following the initial registration period.
deleted text end

Sec. 3.

Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:

Subd. 3.

Exceptions.

(a) The registrar shall register all vehicles subject to
registration under the monthly series system for a period of 12 consecutive calendar
months, unless:

(1) the application is an original rather than renewal application; or

(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which
case the applicant may apply for initial or renewed registration of a vehicle for a period
of four or more months, the month of expiration to be designated by the applicant at the
time of registration. However, to qualify for this exemption, the applicant must present
the application to the registrar at St. Paul, or at deputy registrar offices as the registrar
may designate.

(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall
not approve registering the vehicle subject to the application for a period of less than three
months, except when the registrar determines that to do otherwise will help to equalize
the registration and renewal work load of the department.

new text begin (c) As used in this subdivision, the following terms have the meanings given:
new text end

new text begin (1) "initial registration" means the 12 consecutive months calendar period from the
day of first registration of a vehicle in Minnesota; and
new text end

new text begin (2) "renewal periods" means the 12 consecutive calendar months periods following
the initial registration period.
new text end

Sec. 4.

Minnesota Statutes 2006, section 296A.07, subdivision 3, is amended to read:

Subd. 3.

Rate of tax.

The gasoline excise tax is imposed at the following rates:

(1) E85 is taxed at the rate of deleted text begin 14.2 deleted text end new text begin 17.75 new text end cents per gallon new text begin , and 21.3 cents per gallon
after May 31, 2008 new text end ;

(2) M85 is taxed at the rate of deleted text begin 11.4 deleted text end new text begin 14.25 new text end cents per gallon new text begin , and 17.1 cents per gallon
after May 31, 2008 new text end ; and

(3) all other gasoline is taxed at the rate of deleted text begin 20 deleted text end new text begin 25 new text end cents per gallon new text begin , and 30 cents
per gallon after May 31, 2008 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2007.
new text end

Sec. 5.

Minnesota Statutes 2006, section 296A.08, subdivision 2, is amended to read:

Subd. 2.

Rate of tax.

The special fuel excise tax is imposed at the following rates:

(a) Liquefied petroleum gas or propane is taxed at the rate of deleted text begin 15 deleted text end new text begin 18.75 new text end cents per
gallon new text begin , and 22.5 cents per gallon after May 31, 2008 new text end .

(b) Liquefied natural gas is taxed at the rate of deleted text begin 12 deleted text end new text begin 15 new text end cents per gallon new text begin , and 18 cents
per gallon after May 31, 2008 new text end .

(c) Compressed natural gas is taxed at the rate of deleted text begin $1.739 deleted text end new text begin $2.174 new text end per thousand
cubic feet deleted text begin ; deleted text end new text begin , new text end or deleted text begin 20 deleted text end new text begin 25 new text end cents per gasoline equivalent, new text begin and $2.609 per thousand cubic feet,
or 30 cents per gasoline equivalent after May 31, 2008. For purposes of this paragraph,
"gasoline equivalent," new text end as defined by the National Conference on Weights and Measures,
deleted text begin which deleted text end is 5.66 pounds of natural gas.

(d) All other special fuel is taxed at the same rate as the gasoline excise tax as
specified in section 296A.07, subdivision 2. The tax is payable in the form and manner
prescribed by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2007.
new text end

Sec. 6.

Minnesota Statutes 2006, section 297B.09, subdivision 1, is amended to read:

Subdivision 1.

Deposit of revenues.

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

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

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

deleted text begin (d) On and after July 1, 2007, 32 percent of the money collected and received must
be deposited in the highway user tax distribution fund, 20.5 percent must be deposited
in the metropolitan area transit fund under section 16A.88, and 1.25 percent must be
deposited in the greater Minnesota transit fund under section 16A.88. The remaining
money must be deposited in the general fund.
deleted text end

new text begin (b) From July 1, 2007, through June 30, 2008, 38.25 percent must be deposited in
the highway user tax distribution fund, 23 percent must be deposited in the metropolitan
area transit account, and 2.5 percent must be deposited in the greater Minnesota transit
account. The remaining money must be deposited in the general fund.
new text end

new text begin (c) From July 1, 2008, through June 30, 2009, 44.25 percent must be deposited in the
highway user tax distribution fund, 26.75 percent must be deposited in the metropolitan
area transit account, and 2.75 percent must be deposited in the greater Minnesota transit
account. The remaining money must be deposited in the general fund.
new text end

new text begin (d) From July 1, 2009, through June 30, 2010, 50.25 percent must be deposited in
the highway user tax distribution fund, 30.5 percent must be deposited in the metropolitan
area transit account, and three percent must be deposited in the greater Minnesota transit
account. The remaining money must be deposited in the general fund.
new text end

new text begin (e) From July 1, 2010, through June 30, 2011, 56.25 percent must be deposited in the
highway user tax distribution fund, 34.25 percent must be deposited in the metropolitan
area transit account, and 3.25 percent must be deposited in the greater Minnesota transit
account. The remaining money must be deposited in the general fund.
new text end

new text begin (f) On and after July 1, 2011, 60 percent must be deposited in the highway user tax
distribution fund, 36.5 percent must be deposited in the metropolitan area transit account,
and 3.5 percent must be deposited in the greater Minnesota transit account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 7.

Minnesota Statutes 2006, section 473.446, subdivision 1, is amended to read:

Subdivision 1.

Metropolitan area transit tax.

(a) For the purposes of sections
473.405 to 473.449 and the metropolitan transit system, except as otherwise provided in
this subdivision, the council shall levy each year upon all taxable property within the
metropolitan area, defined in section 473.121, subdivision 2, a transit tax consisting of:

(1) an amount necessary to provide full and timely payment of certificates of
indebtedness, bonds, including refunding bonds or other obligations issued or to be issued
under section 473.39 by the council for purposes of acquisition and betterment of property
and other improvements of a capital nature and to which the council has specifically
pledged tax levies under this clause; and

(2) an additional amount necessary to provide full and timely payment of certificates
of indebtedness issued by the council, after consultation with the commissioner of finance,
if revenues to the metropolitan area transit deleted text begin fund deleted text end new text begin account new text end in the fiscal year in which the
indebtedness is issued increase over those revenues in the previous fiscal year by a
percentage less than the percentage increase for the same period in the revised Consumer
Price Index for all urban consumers for the St. Paul-Minneapolis metropolitan area
prepared by the United States Department of Labor.

(b) Indebtedness to which property taxes have been pledged under paragraph (a),
clause (2), that is incurred in any fiscal year may not exceed the amount necessary to
make up the difference between (1) the amount that the council received or expects to
receive in that fiscal year from the metropolitan area transit deleted text begin fund deleted text end new text begin account new text end and (2) the
amount the council received from that fund in the previous fiscal year multiplied by the
percentage increase for the same period in the revised Consumer Price Index for all urban
consumers for the St. Paul-Minneapolis metropolitan area prepared by the United States
Department of Labor.

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin Except as specifically provided otherwise, this article is effective July 1, 2007.
new text end

ARTICLE 4

COUNTY STATE-AID HIGHWAY FUND DISTRIBUTION

Section 1.

Minnesota Statutes 2006, section 162.06, is amended to read:

162.06 ACCRUALS TO COUNTY STATE-AID HIGHWAY FUND;
ACCOUNTS.

Subdivision 1.

Estimate.

new text begin (a) new text end By December 15 of each year the commissioner shall
estimate the amount of money that will be available to the county state-aid highway fund
during that fiscal year. The amount available must be based on actual receipts from July 1
through November 30, the unallocated fund balance, and the projected receipts for the
remainder of the fiscal year. The deleted text begin total deleted text end new text begin amount new text end available deleted text begin , except for deductions as provided
herein, deleted text end shall be apportioned by the commissioner to the counties as deleted text begin hereinafter deleted text end provided new text begin
in section 162.07 new text end .

new text begin (b) For purposes of this section, the apportionment sum is the amount calculated
in section 162.07, subdivision 1.
new text end

Subd. 2.

Administrative costs of department.

Two percent must be deducted
from the deleted text begin total amount available in the county state-aid highway fund deleted text end new text begin apportionment sum new text end ,
set aside in a separate account, and used for administrative costs incurred by the state
Transportation Department in carrying out the provisions relating to the county state-aid
highway system.

Subd. 3.

Disaster account.

(a) After deducting administrative costs as provided in
subdivision 2, the commissioner shall set aside each year deleted text begin a sum of money equal to deleted text end one
percent of the deleted text begin remaining money in the county state-aid highway fund deleted text end new text begin apportionment sum new text end
to provide for a disaster account; provided that the total amount of money in the disaster
account must never exceed two percent of the total sums to be apportioned to the counties.
deleted text begin This sum deleted text end new text begin The money new text end must be used to provide aid to any county encountering disasters
or unforeseen events affecting its county state-aid highway system, and resulting in an
undue and burdensome financial hardship.

(b) Any county desiring aid by reason of disaster or unforeseen event shall request
the aid in the form required by the commissioner. Upon receipt of the request, the
commissioner shall appoint a board consisting of two representatives of the counties, who
must be either a county engineer or member of a county board, from counties other than the
requesting county, and a representative of the commissioner. The board shall investigate
the matter and report its findings and recommendations in writing to the commissioner.

(c) Final determination of the amount of aid, if any, to be paid to the county from the
disaster account must be made by the commissioner. Upon determining to aid a requesting
county, the commissioner shall certify to the commissioner of finance the amount of the
aid, and the commissioner of finance shall then issue a warrant in that amount payable
to the county treasurer of the county. Money so paid must be expended on the county
state-aid highway system in accordance with the rules of the commissioner.

Subd. 4.

Research account.

(a) Each year the screening board, provided for in
section 162.07, subdivision 5, may recommend to the commissioner a sum of money that
the commissioner shall set aside from the deleted text begin county state-aid highway fund deleted text end new text begin apportionment
sum new text end and credit to a research account. The amount so recommended and set aside shall not
exceed one-half of one percent of the preceding year's apportionment sum.

(b) Any money so set aside shall be used by the commissioner for the purpose of:

(1) conducting research for improving the design, construction, maintenance and
environmental compatibility of state-aid highways and appurtenances;

(2) constructing research elements and reconstructing or replacing research elements
that fail; and

(3) conducting programs for implementing and monitoring research results.

(c) Any balance remaining in the research account at the end of each year from
the sum set aside for the year immediately previous, shall be transferred to the county
state-aid highway fund.

Subd. 5.

State park road account.

After deducting for administrative costs and
for the disaster account and research account as deleted text begin heretofore provided from the remainder
of the total sum provided for in subdivision 1, there shall be deducted deleted text end new text begin provided in this
section, the commissioner shall deduct new text end a sum equal to the three-quarters of one percent of
the deleted text begin remainder deleted text end new text begin apportionment sum new text end . The sum so deducted shall be set aside in a separate
account and shall be used for (1) the establishment, location, relocation, construction,
reconstruction, and improvement of those roads included in the county state-aid highway
system under Minnesota Statutes 1961, section 162.02, subdivision 6, which border and
provide substantial access to an outdoor recreation unit as defined in section 86A.04 or
which provide access to the headquarters of or the principal parking lot located within
such a unit, and (2) the reconstruction, improvement, repair, and maintenance of county
roads, city streets, and town roads that provide access to public lakes, rivers, state parks,
and state campgrounds. Roads described in clause (2) are not required to meet county
state-aid highway standards. At the request of the commissioner of natural resources the
counties wherein such roads are located shall do such work as requested in the same
manner as on any county state-aid highway and shall be reimbursed for such construction,
reconstruction, or improvements from the amount set aside by this subdivision. Before
requesting a county to do work on a county state-aid highway as provided in this
subdivision, the commissioner of natural resources must obtain approval for the project
from the County State-Aid Screening Board. The screening board, before giving its
approval, must obtain a written comment on the project from the county engineer of the
county requested to undertake the project. Before requesting a county to do work on a
county road, city street, or a town road that provides access to a public lake, a river, a state
park, or a state campground, the commissioner of natural resources shall obtain a written
comment on the project from the county engineer of the county requested to undertake
the project. Any sums paid to counties or cities in accordance with this subdivision shall
reduce the money needs of said counties or cities in the amounts necessary to equalize
their status with those counties or cities not receiving such payments. Any balance of the
amount so set aside, at the end of each year shall be transferred to the county state-aid
highway fund.

Subd. 6.

County state-aid highway revolving loan account.

A county state-aid
highway revolving loan account is created in the transportation revolving loan fund. The
commissioner may transfer to the account the amount allocated under section 162.065.
Money in the account may be used to make loans. Funds in the county state-aid highway
revolving loan account may be used only for aid in the construction, improvement, and
maintenance of county state-aid highways. Funds in the account may not be used for any
toll facilities project or congestion-pricing project. Repayments and interest from loans
from the county state-aid highway revolving loan account must be credited to that account.
Money in the account is annually appropriated to the commissioner and does not lapse.
Interest earned from investment of money in this account must be deposited in the county
state-aid highway revolving loan account.

Sec. 2.

Minnesota Statutes 2006, section 162.07, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Formula deleted text end new text begin Apportionment sum new text end .

deleted text begin After deducting for administrative
costs and for the disaster account and research account and state park roads as heretofore
provided, the remainder of the total sum provided for in section 162.06, subdivision 1,
shall be identified as the apportionment sum and shall be apportioned by the commissioner
to the several counties on the basis of the needs of the counties as determined in
accordance with the following formula:
deleted text end

new text begin (a) The commissioner shall reduce the apportionment sum by the deductions
provided for in section 162.06 for administrative costs, disaster account, research account,
and state park road account. The commissioner shall apportion the remainder to the several
counties on the basis of the needs of the counties, as provided in paragraphs (b) to (e).
new text end

deleted text begin (a) deleted text end new text begin (b) new text end An amount equal to ten percent of the apportionment sum shall be apportioned
equally among the 87 counties.

deleted text begin (b) deleted text end new text begin (c) new text end An amount equal to ten percent of the apportionment sum shall be
apportioned among the several counties so that each county shall receive of such amount
the percentage that its motor vehicle registration for the calendar year preceding the
one last past, determined by residence of registrants, bears to the total statewide motor
vehicle registration.

deleted text begin (c) deleted text end new text begin (d) new text end An amount equal to 30 percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the percentage
that its total lane-miles of approved county state-aid highways bears to the total lane-miles
of approved statewide county state-aid highways. In 1997 and subsequent years no county
may receive, as a result of an apportionment under this clause based on lane-miles rather
than miles of approved county state-aid highways, an apportionment that is less than its
apportionment in 1996.

deleted text begin (d) deleted text end new text begin (e) new text end An amount equal to 50 percent of the apportionment sum shall be apportioned
among the several counties so that each county shall receive of such amount the percentage
that its money needs bears to the sum of the money needs of all of the individual counties;
provided, that the percentage of such amount that each county is to receive shall be
adjusted so that each county shall receive in 1958 a total apportionment at least ten
percent greater than its total 1956 apportionments from the state road and bridge fund;
and provided further that those counties whose money needs are thus adjusted shall
never receive a percentage of the apportionment sum less than the percentage that such
county received in 1958.

Sec. 3.

Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Apportionment sum and excess sum. new text end

new text begin (a) For purposes of this
subdivision, "amount available" means the amount identified in section 162.06,
subdivision 1.
new text end

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

new text begin (c) The excess sum is calculated as the sum of revenue within the amount available:
new text end

new text begin (1) attributed to that portion of the gasoline excise tax rate in excess of 20 cents per
gallon, and to that portion of the excise tax rate for E85, M85, and special fuels in excess
of the energy equivalent of a gasoline tax rate of 20 cents per gallon;
new text end

new text begin (2) attributed to a change in the passenger vehicle registration tax under section
168.013, imposed on or after July 1, 2007, that exceeds the amount collected in fiscal year
2007 multiplied by the annual average United States Consumer Price Index for all urban
consumers, United States city average, as determined by the United States Department of
Labor for the previous year, divided by the annual average for calendar year 2006; and
new text end

new text begin (3) attributed to that portion of the motor vehicle sales tax revenue in excess of the
percentage allocated in fiscal year 2007.
new text end

Sec. 4.

Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
to read:

new text begin Subd. 1c. new text end

new text begin Excess sum. new text end

new text begin The commissioner shall apportion the excess sum to the
several counties on the basis of the needs of the counties, as provided in paragraphs (a)
and (b).
new text end

new text begin (a) An amount equal to 40 percent must be apportioned among the several counties
so that each county receives of that amount the percentage that its motor vehicle
registration for the calendar year preceding the one last past, determined by residence of
registrants, bears to the total statewide motor vehicle registration.
new text end

new text begin (b) An amount equal to 60 percent must be apportioned among the several counties
so that each county receives of that amount the percentage that its money needs bears to
the sum of the money needs of all of the individual counties.
new text end

Sec. 5. new text begin INSTRUCTION TO REVISOR.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes 2006, section 162.07,
subdivision 1, as subdivision 1b.
new text end

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

new text begin Except as specifically provided otherwise, this article is effective July 1, 2007.
new text end

ARTICLE 5

LOCAL OPTION TAXES

Section 1.

Minnesota Statutes 2006, section 161.04, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Highway spending in metropolitan transportation area. new text end

new text begin In any year
during which taxes authorized in section 297A.992, subdivision 2, are imposed, and
exclusive of the expenditure of these revenues, the percentage of total trunk highway fund
expenditures attributable to projects in the metropolitan transportation area, within the
meaning of section 297A.992, subdivision 1, may not decrease more than two percentage
points from the average of the previous five years of trunk highway fund metropolitan
transportation area expenditures.
new text end

Sec. 2.

Minnesota Statutes 2006, section 163.051, is amended to read:

163.051 deleted text begin METROPOLITAN deleted text end COUNTY WHEELAGE TAX.

Subdivision 1.

Tax authorized.

The board of commissioners of each deleted text begin metropolitan deleted text end
county is authorized to levy new text begin by resolution new text end a wheelage tax of deleted text begin $5 for the year 1972 and each
subsequent year thereafter by resolution deleted text end new text begin $20 each year new text end on each motor vehicle deleted text begin , except
motorcycles as defined in section 169.01, subdivision 4, which is kept in such county
when not in operation and which is deleted text end new text begin that is domiciled in the county and new text end subject to annual
registration and taxation under chapter 168. new text begin A wheelage tax does not apply to motorcycles
as defined in section 169.01, subdivision 4, and motor vehicles registered under section
168.013, subdivision 1e, with a total gross weight of 26,001 pounds or greater. new text end The board
may provide by resolution for collection of the wheelage tax by county officials or deleted text begin it may
request that the tax be collected deleted text end by the state registrar of motor vehicles, and the deleted text begin state deleted text end
registrar deleted text begin of motor vehicles deleted text end shall collect deleted text begin such deleted text end new text begin the new text end tax on behalf of the county if deleted text begin requested,
as provided in subdivision 2 deleted text end new text begin provided in the board resolution new text end .

Subd. 2.

Collection by registrar deleted text begin of motor vehicles deleted text end .

The wheelage tax levied by
any deleted text begin metropolitan deleted text end county, if made collectible by the deleted text begin state deleted text end registrar deleted text begin of motor vehicles deleted text end , shall
be certified by the county auditor to the registrar not later than August 1 in the year before
deleted text begin the deleted text end new text begin a new text end calendar year deleted text begin or years deleted text end for which the tax is levied, and the registrar shall collect deleted text begin such deleted text end new text begin
the new text end tax with the deleted text begin motor deleted text end vehicle deleted text begin taxes deleted text end new text begin registration tax new text end on deleted text begin the deleted text end new text begin each new text end affected deleted text begin vehicles deleted text end new text begin vehicle
new text end for deleted text begin such deleted text end new text begin that new text end year deleted text begin or years deleted text end . deleted text begin Every deleted text end new text begin An new text end owner deleted text begin and every operator deleted text end of deleted text begin such deleted text end a motor vehicle
new text begin subject to the wheelage tax new text end shall furnish deleted text begin to the registrar deleted text end all information requested by the
registrar new text begin relating to the wheelage tax new text end . deleted text begin No state motor deleted text end new text begin A new text end vehicle new text begin registration new text end tax deleted text begin on any
such motor vehicle for any such year shall deleted text end new text begin may not new text end be received or deemed paid unless the
applicable wheelage tax is paid deleted text begin therewith deleted text end . deleted text begin The proceeds of the wheelage tax levied by any
metropolitan county, less any amount retained by the registrar to pay costs of collection of
the wheelage tax, shall be paid to the commissioner of finance and deposited in the state
treasury to the credit of the county wheelage tax fund of each metropolitan county.
deleted text end

Subd. 2a.

Tax proceeds deposited; costs of collection; appropriation.

Notwithstanding deleted text begin the provisions of deleted text end any other law, the deleted text begin state deleted text end registrar deleted text begin of motor vehicles deleted text end shall
deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of the
deleted text begin county wheelage tax deleted text end new text begin road and bridge new text end fund of each deleted text begin metropolitan deleted text end county new text begin that levies the
wheelage tax new text end . The amount necessary to pay the costs of deleted text begin collection of said deleted text end new text begin collecting the
new text end tax is appropriated new text begin to the registrar new text end from the county deleted text begin wheelage tax deleted text end new text begin road and bridge new text end fund of
each deleted text begin metropolitan deleted text end county deleted text begin to the state registrar of motor vehicles deleted text end new text begin that levies the tax new text end .

deleted text begin Subd. 3. deleted text end

deleted text begin Distribution to metropolitan county; appropriation. deleted text end

deleted text begin On or before April
1 in 1972 and each subsequent year, the commissioner of finance shall issue a warrant in
favor of the treasurer of each metropolitan county for which the registrar has collected a
wheelage tax in the amount of such tax then on hand in the county wheelage tax fund.
There is hereby appropriated from the county wheelage tax fund each year, to each
metropolitan county entitled to payments authorized by this section, sufficient moneys
to make such payments.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Use of tax. deleted text end

deleted text begin The treasurer of each metropolitan county receiving moneys
under subdivision 3 shall deposit such moneys in the county road and bridge fund. The
moneys shall be used for purposes authorized by law which are highway purposes within
the meaning of the Minnesota Constitution, article 14.
deleted text end

deleted text begin Subd. 5. deleted text end

deleted text begin Effect on road and bridge levy. deleted text end

deleted text begin The county auditor of each metropolitan
county shall reduce the amount of the property taxes levied pursuant to law in 1973 for
collection in 1974, by the board of commissioners of such county for the county road
and bridge fund, by the following amount: Anoka County, $341,750; Carver County,
$86,725; Dakota County, $386,165; Hennepin County, $2,728,425; Ramsey County,
$1,276,815; Scott County, $104,805; Washington County, $227,220, and shall spread only
the balance thereof on the tax rolls for collection in 1972. The county auditor shall also
reduce the amount of such taxes levied pursuant to law in 1972 and any subsequent year,
for collection in the respective ensuing years, by the amount of wheelage taxes received
by the county in the 12 months immediately preceding such levy.
deleted text end

deleted text begin Subd. 6. deleted text end

deleted text begin Metropolitan county defined. deleted text end

deleted text begin "Metropolitan county" means any of the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
deleted text end

Subd. 7.

Offenses; penalties; application of other laws.

Any owner or operator
of a motor vehicle who deleted text begin shall deleted text end willfully deleted text begin give any deleted text end new text begin gives new text end false information relative to the
new text begin wheelage new text end tax deleted text begin herein authorized deleted text end to the registrar deleted text begin of motor vehicles deleted text end or any deleted text begin metropolitan deleted text end
county, or who deleted text begin shall deleted text end willfully deleted text begin fail deleted text end new text begin fails new text end or deleted text begin refuse deleted text end new text begin refuses new text end to furnish any such information,
deleted text begin shall be deleted text end new text begin is new text end guilty of a misdemeanor. Except as otherwise deleted text begin herein deleted text end provided new text begin in this section new text end , deleted text begin
the deleted text end collection and payment of a wheelage tax and all new text begin related new text end matters deleted text begin relating thereto shall
be deleted text end new text begin are new text end subject to deleted text begin all provisions of law deleted text end new text begin laws new text end relating to collection and payment of motor
vehicle taxes so far as applicable.

Sec. 3.

Minnesota Statutes 2006, section 168.011, subdivision 6, is amended to read:

Subd. 6.

Tax.

"Tax" means the annual registration tax imposed on vehicles in lieu
of all other taxes, except wheelage taxes which may be imposed by any city new text begin or county new text end ,
and gross earnings taxes paid by companies. The annual tax is both a property tax and a
highway use tax and shall be on the basis of the calendar year.

Sec. 4.

Minnesota Statutes 2006, section 168.013, subdivision 1, is amended to read:

Subdivision 1.

Imposition.

Motor vehicles, except as set forth in section 168.012,
using the public streets or highways in the state, and park trailers taxed under subdivision
1j, shall be taxed in lieu of all other taxes thereon, except wheelage taxes, deleted text begin so-called, deleted text end which
may be imposed by any city new text begin or county new text end as provided by law, and except gross earnings
taxes paid by companies subject or made subject thereto, and shall be privileged to
use the public streets and highways, on the basis and at the rate for each calendar year
as hereinafter provided.

Sec. 5.

Minnesota Statutes 2006, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (g) The revenues, including interest and penalties, collected under sections 297A.992
and 297A.993 must be deposited by the commissioner as provided for in those sections.
new text end

Sec. 6.

new text begin [297A.992] METROPOLITAN TRANSPORTATION SALES AND USE
TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (1) "metropolitan transportation area" means the counties of Anoka, Dakota,
Hennepin, Ramsey, and Washington, and may include the counties of Carver and Scott if
declared by resolution of its county board to be a part of the metropolitan transportation
area; and
new text end

new text begin (2) "joint powers board" means the Metropolitan Transportation Area Joint Powers
Board.
new text end

new text begin Subd. 2. new text end

new text begin Authorization; rates. new text end

new text begin (a) Notwithstanding section 297A.99, subdivisions
1, 2, 3, 5, and 13, or 477A.016, or any other law, the boards of the counties acting under a
joint powers agreement as specified in this section may impose (1) a transportation sales
and use tax within the metropolitan transportation area, at a rate of one-half of one percent
on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per motor
vehicle purchased or acquired from any person engaged in the business of selling motor
vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes
authorized are to fund transportation improvements as specified in this section.
new text end

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

new text begin Subd. 3. new text end

new text begin Joint powers board. new text end

new text begin (a) Before imposing the taxes authorized under
subdivision 2, all of the counties in the metropolitan transportation area shall enter into
a joint powers agreement to create the joint powers board. A joint powers agreement
under this section:
new text end

new text begin (1) must provide a process and timeline that allows an eligible county, by resolution
of its county board, to join the joint powers board and impose the taxes authorized under
subdivision 2;
new text end

new text begin (2) may provide for withdrawal of participating counties before final termination of
the agreement; and
new text end

new text begin (3) may provide for a weighted-voting system for joint powers board decisions.
new text end

new text begin (b) The joint powers board must consist of one representative of each county
appointed by its county board. The joint powers board has the powers and duties provided
in this section and in section 471.59.
new text end

new text begin (c) The joint powers board shall maximize the availability and use of federal funds in
projects funded under this section. The joint powers board may not utilize proceeds of the
taxes imposed, or proceeds of bonds or other obligations issued, to reimburse counties for
ordinary administrative expenses incurred in carrying out the provisions of this section.
new text end

new text begin (d) After the deductions allowed in section 297A.99, subdivision 11, the
commissioner of revenue shall remit the proceeds of the taxes imposed under this section
to the joint powers board.
new text end

new text begin Subd. 4. new text end

new text begin Grants for transportation projects. new text end

new text begin (a) The joint powers board
shall by resolution, and in consultation with one elected city official from each county
in the metropolitan transportation area appointed by the Association of Metropolitan
Municipalities, establish a grant application process and define objective criteria for the
award of grants.
new text end

new text begin (b) Grant applications must be submitted in a form prescribed by the joint powers
board. An applicant must provide, in addition to all other information required by the joint
powers board, the estimated cost of the project, the amount of the grant sought, possible
sources of funding in addition to the grant sought, and identification of any federal funds
that will be utilized if the grant is awarded.
new text end

new text begin (c) Grants must be funded by the proceeds of the taxes imposed under this section, or
bonds or other obligations issued by the joint powers board. Grant awards must be made
annually by July 1 and funded in the next calendar year.
new text end

new text begin Subd. 5. new text end

new text begin Use of grant awards. new text end

new text begin The joint powers board may only award grants to
the state and political subdivisions for the following purposes:
new text end

new text begin (1) construction or reconstruction of trunk highways or local roads of regional
significance;
new text end

new text begin (2) capital improvements to transit ways;
new text end

new text begin (3) feasibility studies, planning, alternatives analyses, environmental studies,
engineering, and construction of transit ways; and
new text end

new text begin (4) operating assistance for transit.
new text end

new text begin Subd. 6. new text end

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

new text begin The administration, collection,
and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all
taxes imposed under this section.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin In each year in which the taxes authorized in this section are
imposed, the joint powers board shall report by February 1 to the house of representatives
and senate committees having jurisdiction over transportation policy and finance
concerning the revenues received and grants awarded.
new text end

Sec. 7.

new text begin [297A.993] GREATER MINNESOTA TRANSPORTATION SALES AND
USE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization; rates. new text end

new text begin Notwithstanding section 297A.99,
subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside
the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or
more than one county outside the metropolitan transportation area acting under a joint
powers agreement, may impose (1) a transportation sales tax at a rate of one-half of one
percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per
motor vehicle purchased or acquired from any person engaged in the business of selling
motor vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes
imposed under this section are subject to approval by a majority of the voters of the county
or counties at a general election who vote on the question to impose the taxes.
new text end

new text begin Subd. 2. new text end

new text begin Allocation; termination. new text end

new text begin The proceeds of the taxes must be dedicated
exclusively to payment of the cost of a specific transportation project or improvement.
The transportation project or improvement must be designated by the board of the county,
or more than one county acting under a joint powers agreement. The taxes must terminate
after the project or improvement has been completed.
new text end

new text begin Subd. 3. new text end

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

new text begin The administration, collection,
and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all
taxes imposed under this section.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2007, except that sections 6 and 7 are effective for
sales made on and after January 1, 2008.
new text end

ARTICLE 6

TRANSPORTATION FINANCE

Section 1.

Minnesota Statutes 2006, section 161.04, subdivision 3, is amended to read:

Subd. 3.

Trunk highway revolving loan account.

A trunk highway revolving loan
account is created in the transportation revolving loan fund under section 446A.085.
The commissioner may transfer money from the trunk highway fund to the trunk
highway revolving loan account new text begin and from the trunk highway revolving loan account to
the trunk highway fund new text end . Money in the account may be used to make loans. Funds in
the trunk highway revolving loan account may not be used for any toll facilities project
or congestion-pricing project and may be used only for trunk highway purposes and
repayments and interest from loans of those funds must be credited to the trunk highway
revolving loan account in the transportation revolving loan fund. Money in the trunk
highway revolving loan account is annually appropriated to the commissioner and does
not lapse. Interest earned from investment of money in this account must be deposited in
the trunk highway revolving loan account.

Sec. 2.

Minnesota Statutes 2006, section 473.388, subdivision 4, is amended to read:

Subd. 4.

Financial assistance.

(a) The council must grant the requested financial
assistance if it determines that the proposed service is intended to replace the service to
the applying city or town or combination thereof by the council and that the proposed
service will meet the needs of the applicant at least as efficiently and effectively as the
existing service.

(b) The amount of assistance which the council must provide to a system under this
section may not be less than the sum of the amounts determined for each municipality
comprising the system as follows:

(1) the transit operating assistance grants received under this subdivision by the
municipality in calendar year 2001 or the tax revenues for transit services levied by the
municipality for taxes payable in 2001, including that portion of the levy derived from
the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of
the municipality's aid under section 273.1398, subdivision 2, attributable to the transit
levy; times

(2) the ratio of (i) deleted text begin the appropriation from the transit fund to the council for nondebt
transit operations deleted text end new text begin an amount equal to 3.623 percent of the state revenues generated from
the taxes imposed under section 297A.815 and chapter 297B new text end for the current fiscal year to
(ii) the total deleted text begin levy certified by the council under section 473.446 and the opt-out deleted text end new text begin transit
operating assistance grants received under this subdivision in calendar year 2001 or the
tax revenues for transit services levied by all replacement service new text end municipalities under
this section for taxes payable in 2001, including new text begin that portion of the levy derived from
the areawide pool under section 473F.08, subdivision 3, clause (a), plus new text end the portion of
homestead and agricultural credit aid under section 273.1398, subdivision 2, attributable
to nondebt transit levies, times

(3) the ratio of (i) the municipality's total taxable market value for taxes payable in
deleted text begin the most recent year for which data is available deleted text end new text begin 2007 new text end divided by the municipality's total
taxable market value for taxes payable in 2001, to (ii) the total taxable market value of
all property deleted text begin in the metropolitan area deleted text end new text begin located in replacement service municipalities new text end for
taxes payable in deleted text begin the most recent year for which data is available deleted text end new text begin 2007 new text end divided by the
total taxable market value of all property deleted text begin in the metropolitan area deleted text end new text begin located in replacement
service municipalities new text end for taxes payable in 2001.

(c) The council shall pay the amount to be provided to the recipient from the funds
the council deleted text begin would otherwise use to fund its transit operations deleted text end new text begin receives in the metropolitan
area transit account under section 16A.88 new text end .

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 174.32, new text end new text begin is repealed.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Except as specifically provided otherwise, this article is effective July 1, 2007.
new text end

ARTICLE 7

DEPARTMENT OF PUBLIC SAFETY SERVICE FEES

Section 1.

Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:

Subd. 3.

Exceptions.

(a) The registrar shall register all vehicles subject to
registration under the monthly series system for a period of 12 consecutive calendar
months, unless:

(1) the application is an original rather than renewal application; or

(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which
case the applicant may apply for initial deleted text begin or renewed deleted text end registration of a vehicle for a period
of four or more months, the month of expiration to be designated by the applicant at the
time of registration. However, to qualify for this exemption, the applicant must new text begin pay a $10
administrative fee and new text end present the application to the registrar at St. Paul, or deleted text begin at deleted text end new text begin a designated
new text end deputy registrar deleted text begin offices as the registrar may designate. deleted text end new text begin office. At the end of the initial
registration period, the applicant may only renew the registration on the vehicle for the
remainder of the period prescribed under subdivision 1 had the applicant not utilized the
exception in this subdivision. Upon the renewal of registration, the applicant shall pay
1/12 of the annual tax for each calendar month remaining in the registration period in
addition to a $10 administrative fee. Nothing in this subdivision prohibits the applicant
from purchasing registration for an additional full registration period in conjunction with
the purchase of the remainder portion. new text end

(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall
not approve registering the vehicle subject to the application for a period of less than three
months, except when the registrar determines that to do otherwise will help to equalize
the registration and renewal work load of the department.

new text begin (c) The fee collected under paragraph (a), clause (2), must be deposited in the vehicle
services operating account in the special revenue fund as specified in section 299A.705.
new text end

Sec. 2.

Minnesota Statutes 2006, section 168.12, subdivision 5, is amended to read:

Subd. 5.

Additional fee.

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

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

deleted text begin Sequential Regular Double Plate deleted text end		deleted text begin $ deleted text end	deleted text begin 4.25 deleted text end
deleted text begin Sequential Special Plate-Double deleted text end		deleted text begin $ deleted text end	deleted text begin 7.00 deleted text end
deleted text begin Sequential Regular Single Plate deleted text end		deleted text begin $ deleted text end	deleted text begin 3.00 deleted text end
deleted text begin Sequential Special Plate-Single deleted text end		deleted text begin $ deleted text end	deleted text begin 5.50 deleted text end
deleted text begin Utility Trailer Self-Adhesive Plate deleted text end		deleted text begin $ deleted text end	deleted text begin 2.50 deleted text end
deleted text begin Nonsequential Double Plate deleted text end		deleted text begin $ deleted text end	deleted text begin 14.00 deleted text end
deleted text begin Nonsequential Single Plate deleted text end		deleted text begin $ deleted text end	deleted text begin 10.00 deleted text end
deleted text begin Duplicate Sticker deleted text end		deleted text begin $ deleted text end	deleted text begin 1.00 deleted text end

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

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

Sec. 3.

Minnesota Statutes 2006, section 168A.29, subdivision 1, is amended to read:

Subdivision 1.

Amounts.

(a) The department must be paid the following fees:

(1) for filing an application for and the issuance of an original certificate of title, the
sum of deleted text begin $5.50 deleted text end new text begin $6.25 new text end of which deleted text begin $2.50 deleted text end new text begin $3.25 new text end must be paid into the vehicle services operating
account of the special revenue fund under section 299A.705;

(2) for each security interest when first noted upon a certificate of title, including the
concurrent notation of any assignment thereof and its subsequent release or satisfaction,
the sum of $2, except that no fee is due for a security interest filed by a public authority
under section 168A.05, subdivision 8;

(3) for the transfer of the interest of an owner and the issuance of a new certificate of
title, the sum of $5.50 of which $2.50 must be paid into the vehicle services operating
account of the special revenue fund under section 299A.705;

(4) for each assignment of a security interest when first noted on a certificate of title,
unless noted concurrently with the security interest, the sum of $1;

(5) for issuing a duplicate certificate of title, the sum of deleted text begin $6.50 deleted text end new text begin $7.25 new text end of which deleted text begin $2.50 deleted text end
new text begin $3.25 new text end must be paid into the vehicle services operating account of the special revenue fund
under section 299A.705.

(b) After June 30, 1994, in addition to each of the fees required under paragraph (a),
clauses (1) and (3), the department must be paid $3.50. The additional $3.50 fee collected
under this paragraph must be deposited in the special revenue fund and credited to the
public safety motor vehicle account established in section 299A.70.

Sec. 4.

Minnesota Statutes 2006, section 171.02, subdivision 3, is amended to read:

Subd. 3.

Motorized bicycle.

(a) A motorized bicycle may not be operated on any
public roadway by any person who does not possess a valid driver's license, unless the
person has obtained a motorized bicycle operator's permit or motorized bicycle instruction
permit from the commissioner of public safety. The operator's permit may be issued to
any person who has attained the age of 15 years and who has passed the examination
prescribed by the commissioner. The instruction permit may be issued to any person who
has attained the age of 15 years and who has successfully completed an approved safety
course and passed the written portion of the examination prescribed by the commissioner.

(b) This course must consist of, but is not limited to, a basic understanding of:

(1) motorized bicycles and their limitations;

(2) motorized bicycle laws and rules;

(3) safe operating practices and basic operating techniques;

(4) helmets and protective clothing;

(5) motorized bicycle traffic strategies; and

(6) effects of alcohol and drugs on motorized bicycle operators.

(c) The commissioner may adopt rules prescribing the content of the safety course,
examination, and the information to be contained on the permits. A person operating a
motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed
by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel
instruction permit.

(d) The fees for motorized bicycle operator's permits are as follows:

(1)	Examination and operator's permit, valid for one year	$ deleted text begin 6 deleted text end new text begin 6.75 new text end
(2)	Duplicate	$ deleted text begin 3 deleted text end new text begin 3.75 new text end
(3)	Renewal permit before age 21 and valid until age 21	$ deleted text begin 9 deleted text end new text begin 9.75 new text end
(4)	Renewal permit age 21 or older and valid for four years	$ deleted text begin 15 deleted text end new text begin 15.75 new text end
(5)	Duplicate of any renewal permit	$ deleted text begin 4.50 deleted text end new text begin 5.25 new text end
(6)	Written examination and instruction permit, valid for 30 days	$ deleted text begin 6 deleted text end new text begin 6.75 new text end

Sec. 5.

Minnesota Statutes 2006, section 171.06, subdivision 2, is amended to read:

Subd. 2.

Fees.

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

deleted text begin Classified Driver's License deleted text end		deleted text begin D-$21.50 deleted text end	deleted text begin C-$25.50 deleted text end	deleted text begin B-$32.50 deleted text end	deleted text begin A-$40.50 deleted text end
deleted text begin Classified Under -21 D.L. deleted text end		deleted text begin D-$21.50 deleted text end	deleted text begin C-$25.50 deleted text end	deleted text begin B-$32.50 deleted text end	deleted text begin A-$20.50 deleted text end
new text begin Classified Driver's License new text end		new text begin D-$22.25 new text end	new text begin C-$26.25 new text end	new text begin B-$33.25 new text end	new text begin A-$41.25 new text end
new text begin Classified Under-21 D.L. new text end		new text begin D-$22.25 new text end	new text begin C-$26.25 new text end	new text begin B-$33.25 new text end	new text begin A-$21.25 new text end
Instruction Permit					deleted text begin $9.50 deleted text end new text begin $10.25 new text end
Provisional License					deleted text begin $12.50 deleted text end new text begin $13.25 new text end
Duplicate License or duplicate identification card					deleted text begin $11.00 deleted text end new text begin $11.75 new text end
Minnesota identification card or Under-21 Minnesota identification card, other than duplicate, except as otherwise provided in section 171.07, subdivisions 3 and 3a					deleted text begin $15.50 deleted text end new text begin $16.25 new text end

(b) Notwithstanding paragraph (a), an individual who holds a provisional license and
has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
violations, and (3) convictions for moving violations that are not crash related, shall have a
$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
has the meaning given it in section 171.04, subdivision 1.

(c) In addition to the driver's license fee required under paragraph (a), the
commissioner shall collect an additional $4 processing fee from each new applicant
or individual renewing a license with a school bus endorsement to cover the costs for
processing an applicant's initial and biennial physical examination certificate. The
department shall not charge these applicants any other fee to receive or renew the
endorsement.

Sec. 6.

Minnesota Statutes 2006, section 171.07, subdivision 3a, is amended to read:

Subd. 3a.

Identification cards for seniors.

A Minnesota identification card issued
to an applicant 65 years of age or over shall be of a distinguishing color and plainly
marked "senior." The fee for the card issued to an applicant 65 years of age or over shall
be one-half the required fee for a class D driver's license new text begin rounded down to the nearest
quarter dollar new text end . A Minnesota identification card or a Minnesota driver's license issued to a
person 65 years of age or over shall be valid identification for the purpose of qualifying
for reduced rates, free licenses or services provided by any board, commission, agency or
institution that is wholly or partially funded by state appropriations.

Sec. 7.

Minnesota Statutes 2006, section 171.07, subdivision 11, is amended to read:

Subd. 11.

Standby or temporary custodian.

(a) Upon the written request of the
applicant and upon payment of an additional fee of deleted text begin $3.50 deleted text end new text begin $4.25 new text end , the department shall issue
a driver's license or Minnesota identification card bearing a symbol or other appropriate
identifier indicating that the license holder has appointed an individual to serve as a
standby or temporary custodian under chapter 257B.

(b) The request must be accompanied by a copy of the designation executed under
section 257B.04.

(c) The department shall maintain a computerized records system of all individuals
listed as standby or temporary custodians by driver's license and identification card
applicants. This data must be released to appropriate law enforcement agencies under
section 13.69. Upon a parent's request and payment of a fee of deleted text begin $3.50 deleted text end new text begin $4.25 new text end , the
department shall revise its list of standby or temporary custodians to reflect a change
in the appointment.

(d) At the request of the license or cardholder, the department shall cancel the
standby or temporary custodian indication without additional charge. However, this
paragraph does not prohibit a fee that may be applicable for a duplicate or replacement
license or card, renewal of a license, or other service applicable to a driver's license or
identification card.

(e) Notwithstanding sections 13.08, subdivision 1, and 13.69, the department
and department employees are conclusively presumed to be acting in good faith when
employees rely on statements made, in person or by telephone, by persons purporting to be
law enforcement and subsequently release information described in paragraph (b). When
acting in good faith, the department and department personnel are immune from civil
liability and not subject to suit for damages resulting from the release of this information.

(f) The department and its employees:

(1) have no duty to inquire or otherwise determine whether a designation submitted
under this subdivision is legally valid and enforceable; and

(2) are immune from all civil liability and not subject to suit for damages resulting
from a claim that the designation was not legally valid and enforceable.

(g) Of the fees received by the department under this subdivision:

(1) Up to $61,000 received must be deposited in the general fund.

(2) All other fees must be deposited in the driver services operating account in the
special revenue fund specified in section 299A.705.

Sec. 8.

Minnesota Statutes 2006, section 171.20, subdivision 4, is amended to read:

Subd. 4.

Reinstatement fee.

(a) Before the license is reinstated, (1) an individual
whose driver's license has been suspended under section 171.16, subdivisions 2 and 3;
new text begin 171.175; new text end 171.18; or 171.182, or who has been disqualified from holding a commercial
driver's license under section 171.165, and (2) an individual whose driver's license has
been suspended under section 171.186 and who is not exempt from such a fee, must
pay a fee of $20.

(b) Before the license is reinstated, an individual whose license has been suspended
under sections 169.791 to 169.798 must pay a $20 reinstatement fee.

(c) When fees are collected by a licensing agent appointed under section 171.061, a
handling charge is imposed in the amount specified under section 171.061, subdivision 4.
The reinstatement fee and surcharge must be deposited in an approved state depository as
directed under section 171.061, subdivision 4.

(d) Reinstatement fees collected under paragraph (a) for suspensions under sections
171.16, subdivision 3, and 171.18, subdivision 1, clause (10), must be deposited in the
special revenue fund and are appropriated to the Peace Officer Standards and Training
Board for peace officer training reimbursement to local units of government.

(e) A suspension may be rescinded without fee for good cause.

Sec. 9.

Minnesota Statutes 2006, section 299D.09, is amended to read:

299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.

Fees charged for escort services provided by the State Patrol are annually
appropriated to the commissioner of public safety to administer and provide these services.

new text begin The fees charged for services provided by the State Patrol with a vehicle are $73.60
an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and thereafter. The fees
charged for services provided without a vehicle are $54.00 an hour in fiscal year 2008 and
$56.16 an hour in fiscal year 2009 and thereafter.
new text end

new text begin The fees charged for State Patrol flight services are $140 an hour for a fixed wing
aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Except as specifically provided otherwise, this article is effective July 1, 2007.
new text end