SF 884

as introduced - 90th Legislature (2017 - 2018) Posted on 02/16/2017 09:22am

A bill for an act
relating to transportation; establishing the governor's budget for transportation and
public safety activities; modifying various provisions governing transportation
and public safety finance; imposing a motor fuels gross receipts tax and a
metropolitan area transit sales and use tax; renewing and clarifying certain fees;
making technical changes; appropriating money; authorizing the sale and issuance
of state bonds; amending Minnesota Statutes 2016, sections 115A.908; 161.081,
subdivision 3; 161.3212; 161.46, subdivision 2; 168.013, subdivision 1a; 168.33,
subdivision 7; 168A.29, subdivision 1; 169.86, subdivision 5; 169.865, subdivisions
1, 2; 169.866, subdivision 3; 171.06, subdivision 2; 219.015, subdivisions 1, 2;
219.1651; 222.49; 222.50, subdivisions 6, 7; 296A.11; 296A.12; 296A.16,
subdivisions 1, 2, 3, 4, 4a, 4b, 5; 296A.18, subdivisions 2, 3, 4, 5, 6, 7; 297A.99,
subdivision 1; 299A.705, subdivision 3; 299D.03, subdivision 5; proposing coding
for new law in Minnesota Statutes, chapters 160; 162; 174; 219; 296A; 297A; 473;
repealing Minnesota Statutes 2016, sections 168.013, subdivision 21; 169.826,
subdivision 7; 169.8261, subdivision 3; 169.86, subdivision 5a; 169.863,
subdivision 3; 169.865, subdivision 5; 169.866, subdivision 4; 473.4051,
subdivision 2; Laws 2012, chapter 287, article 1, section 1, subdivision 6.

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

ARTICLE 1

TRANSPORTATION AND PUBLIC SAFETY APPROPRIATIONS

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

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

		new text begin 2018 new text end		new text begin 2019 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 115,691,000 new text end	new text begin $ new text end	new text begin 110,402,000 new text end	new text begin $ new text end	new text begin 226,093,000 new text end
new text begin Airports new text end		new text begin 22,609,000 new text end		new text begin 22,609,000 new text end		new text begin 45,218,000 new text end
new text begin C.S.A.H. new text end		new text begin 915,505,000 new text end		new text begin 1,080,276,000 new text end		new text begin 1,995,781,000 new text end
new text begin M.S.A.S. new text end		new text begin 288,843,000 new text end		new text begin 373,581,000 new text end		new text begin 662,424,000 new text end
new text begin Special Revenue new text end		new text begin 121,252,000 new text end		new text begin 122,556,000 new text end		new text begin 243,808,000 new text end
new text begin Trunk Highway new text end		new text begin 2,125,326,000 new text end		new text begin 2,238,425,000 new text end		new text begin 4,363,751,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 3,589,226,000 new text end	new text begin $ new text end	new text begin 3,947,849,000 new text end	new text begin $ new text end	new text begin 7,537,075,000 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.
Amounts for "Total Appropriation" and sums shown in the corresponding columns marked
"Appropriations by Fund" are summary only and do not have legal effect. The figures "2018"
and "2019" used in this article mean that the appropriations listed under them are available
for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The first year" is
fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" is fiscal years 2018
and 2019.
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 2018 new text end		new text begin 2019 new text end

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

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

new text begin $ new text end

new text begin 3,103,901,000 new text end

new text begin $ new text end

new text begin 3,333,107,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 33,550,000 new text end	new text begin 20,976,000 new text end
new text begin Airports new text end	new text begin 22,609,000 new text end	new text begin 22,609,000 new text end
new text begin C.S.A.H. new text end	new text begin 825,660,000 new text end	new text begin 928,130,000 new text end
new text begin M.S.A.S. new text end	new text begin 208,100,000 new text end	new text begin 234,300,000 new text end
new text begin Trunk Highway new text end	new text begin 2,013,982,000 new text end	new text begin 2,127,092,000 new text end
new text begin Special Revenue new text end	new text begin 57,000,000 new text end	new text begin 57,000,000 new text end

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

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

new text begin (a) Aeronautics
new text end

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

new text begin 17,298,000 new text end

new text begin 17,298,000 new text end

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

new text begin The base appropriation is $15,298,000 for
fiscal year 2020 and $15,298,000 for fiscal
year 2021.
new text end

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

new text begin If the commissioner of transportation
determines that a balance remains in the state
airports fund following the appropriations
made in this article, and that the appropriations
made are insufficient for advancing airport
development and assistance projects, an
amount necessary to advance the projects, not
to exceed the balance in the state airports fund,
is appropriated in each year to the
commissioner and must be spent according to
Minnesota Statutes, section 360.305,
subdivision 4. Within two weeks of a
determination under this contingent
appropriation, the commissioner of
transportation must notify the commissioner
of management and budget and the chairs and
ranking minority members of the legislative
committees with jurisdiction over
transportation finance concerning funds
appropriated. Funds appropriated under this
contingent appropriation do not adjust the base
appropriation for fiscal years 2020 and 2021.
new text end

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

new text begin 6,790,000 new text end

new text begin 6,934,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin Airports new text end	new text begin 5,311,000 new text end	new text begin 5,311,000 new text end
new text begin Trunk Highway new text end	new text begin 1,479,000 new text end	new text begin 1,623,000 new text end

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

new text begin The base appropriation from the trunk
highway fund is $1,623,000 in fiscal year 2020
and $1,623,000 in fiscal year 2021.
new text end

new text begin (3) State Plane Purchase new text end

new text begin 10,000,000 new text end

new text begin -0- new text end

new text begin This is a onetime appropriation from the
general fund to be used in conjunction with
the proceeds of the sale of the existing planes
for the replacement of two state airplanes.
new text end

new text begin (b) Transit new text end

new text begin 18,091,000 new text end

new text begin 18,188,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 17,245,000 new text end	new text begin 17,245,000 new text end
new text begin Trunk Highway new text end	new text begin 846,000 new text end	new text begin 873,000 new text end
new text begin Special Revenue new text end	new text begin 10,000,000 new text end	new text begin 10,000,000 new text end

new text begin $10,000,000 in each year is from the special
revenue fund for transit grants under
Minnesota Statutes, section 16A.88.
new text end

new text begin $250,000 in each year is from the general fund
to pay administrative costs for the safe routes
to school program under Minnesota Statutes,
section 174.40.
new text end

new text begin The base appropriation from the general fund
is $17,245,000 in fiscal year 2020 and
$17,245,000 in fiscal year 2021.
new text end

new text begin The base appropriation from the trunk
highway fund is $873,000 in fiscal year 2020
and $873,000 in fiscal year 2021.
new text end

new text begin (c) Safe Routes to School new text end

new text begin 2,750,000 new text end

new text begin 2,750,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 500,000 new text end	new text begin 500,000 new text end
new text begin Special Revenue new text end	new text begin 2,250,000 new text end	new text begin 2,250,000 new text end

new text begin $2,250,000 in each year is from the special
revenue fund for the safe routes to school
program under Minnesota Statutes, section
174.40.
new text end

new text begin (d) Passenger Rail new text end

new text begin 900,000 new text end

new text begin 900,000 new text end

new text begin This appropriation is from the general fund
for passenger rail system planning, alternatives
analysis, environmental analysis, design, and
preliminary engineering under Minnesota
Statutes, sections 174.632 to 174.636.
new text end

new text begin (e) Freight new text end

new text begin 8,506,000 new text end

new text begin 7,578,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 3,156,000 new text end	new text begin 2,056,000 new text end
new text begin Trunk Highway new text end	new text begin 5,350,000 new text end	new text begin 5,522,000 new text end

new text begin $1,000,000 in the first year is from the general
fund for the Minnesota rail service
improvement program under Minnesota
Statutes, sections 222.49 and 222.50.
new text end

new text begin $1,100,000 in the first year is from the general
fund for port development assistance program
grants under Minnesota Statutes, chapter
457A. Any improvements made with the
proceeds of these grants must be publicly
owned. This is a onetime appropriation and is
available in the second year.
new text end

new text begin The base appropriation from the general fund
is $2,056,000 in fiscal year 2020 and
$2,056,000 in fiscal year 2021.
new text end

new text begin The base appropriation from the trunk
highway fund is $5,522,000 in fiscal year 2020
and $5,522,000 in fiscal year 2021.
new text end

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

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

new text begin 367,060,000 new text end

new text begin 397,310,000 new text end

new text begin The base appropriation is $399,543,000 in
fiscal year 2020 and $403,104,000 in fiscal
year 2021.
new text end

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

new text begin 250,267,000 new text end

new text begin 275,077,000 new text end

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

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

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

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

new text begin The base appropriation for program planning
and delivery is $276,540,000 in fiscal year
2020 and $279,304,000 in fiscal year 2021.
new text end

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

new text begin 1,066,159,000 new text end

new text begin 1,095,647,000 new text end

new text begin This appropriation is for the actual
construction, reconstruction, and improvement
of trunk highways, including design-build
contracts, internal department costs associated
with delivering the construction program,
consultant usage to support these activities,
and the cost of actual payments to landowners
for lands acquired for highway rights-of-way,
payment to lessees, interest subsidies, and
relocation expenses.
new text end

new text begin An additional $105,000,000 of federal
spending authority is available in fiscal year
2017 upon enactment of this language.
new text end

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

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

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

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

new text begin (d) Working Capital Loan Fund new text end

new text begin 1,500,000 new text end

new text begin -0- new text end

new text begin This appropriation is available in the first year
from the general fund for loans to small
businesses from the working capital loan fund
under Minnesota Statutes, section 161.3212.
This is a onetime appropriation.
new text end

new text begin The base appropriation for state road
construction is $1,085,209,000 in fiscal year
2020 and $1,073,646,000 in fiscal year 2021.
new text end

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

new text begin 224,600,000 new text end

new text begin 251,400,000 new text end

new text begin $215,100,000 in fiscal year 2018 and
$241,900,000 in fiscal year 2019 are for
transfer to the state bond fund. If this
appropriation is insufficient to make all
transfers required in the year for which it is
made, the commissioner of management and
budget must transfer the deficiency amount
under the statutory open appropriation and
notify the chairs and ranking minority
members of the legislative committees with
jurisdiction over transportation finance and
the chairs of the senate Finance Committee
and the house of representatives Ways and
Means Committee of the amount of the
deficiency. Any excess appropriation cancels
to the trunk highway fund.
new text end

new text begin (f) Statewide Radio Communications new text end

new text begin 5,648,000 new text end

new text begin 5,829,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 3,000 new text end	new text begin 3,000 new text end
new text begin Trunk Highway new text end	new text begin 5,645,000 new text end	new text begin 5,826,000 new text end

new text begin $3,000 in each year is from the general fund
to equip and operate the Roosevelt signal
tower for Lake of the Woods weather
broadcasting.
new text end

new text begin The base appropriation from the trunk
highway fund is $5,826,000 in fiscal year 2020
and $5,826,000 in fiscal year 2021.
new text end

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

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

new text begin 825,660,000 new text end

new text begin 928,130,000 new text end

new text begin This appropriation is from the county state-aid
highway fund under Minnesota Statutes,
section 161.081, and Minnesota Statutes,
chapter 162, and is available until spent.
new text end

new text begin If the commissioner of transportation
determines that a balance remains in the
county state-aid highway fund following the
appropriations and transfers made in this
paragraph, and that the appropriations made
are insufficient for advancing county state-aid
highway projects, an amount necessary to
advance the projects, not to exceed the balance
in the county state-aid highway fund, is
appropriated in each year to the commissioner.
Within two weeks of a determination under
this contingent appropriation, the
commissioner of transportation must notify
the commissioner of management and budget
and the chairs and ranking minority members
of the legislative committees with jurisdiction
over transportation finance concerning funds
appropriated. The commissioner must identify
in the next budget submission to the legislature
under Minnesota Statutes, section 16A.11, any
amount that is appropriated under this
paragraph.
new text end

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

new text begin 208,100,000 new text end

new text begin 234,300,000 new text end

new text begin This appropriation is from the municipal
state-aid street fund under Minnesota Statutes,
chapter 162, and is available until spent.
new text end

new text begin If the commissioner of transportation
determines that a balance remains in the
municipal state-aid street fund following the
appropriations and transfers made in this
paragraph, and that the appropriations made
are insufficient for advancing municipal
state-aid street projects, an amount necessary
to advance the projects, not to exceed the
balance in the municipal state-aid street fund,
is appropriated in each year to the
commissioner. Within two weeks of a
determination under this contingent
appropriation, the commissioner of
transportation must notify the commissioner
of management and budget and the chairs and
ranking minority members of the legislative
committees with jurisdiction over
transportation finance concerning funds
appropriated. The commissioner must identify
in the next budget submission to the legislature
under Minnesota Statutes, section 16A.11, any
amount that is appropriated under this
paragraph.
new text end

new text begin (c) Other Local Roads new text end

new text begin 44,500,000 new text end

new text begin 44,500,000 new text end

new text begin $19,000,000 in each year is from the special
revenue fund for the small cities assistance
program under Minnesota Statutes, section
162.145.
new text end

new text begin $19,000,000 in each year is from the special
revenue fund for the large cities assistance
program under Minnesota Statutes, section
162.146.
new text end

new text begin $2,500,000 in each year is from the special
revenue fund for the tribal roads assistance
program under Minnesota Statutes, section
162.147.
new text end

new text begin $4,000,000 in each year is from the special
revenue fund for Americans with Disabilities
Act projects on local roads.
new text end

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

new text begin (a) Agency Services new text end

new text begin 55,545,000 new text end

new text begin 55,929,000 new text end

new text begin The base appropriation is $53,029,000 in fiscal
year 2020 and $53,029,000 in fiscal year 2021.
new text end

new text begin (b) Tribal Training new text end

new text begin 192,000 new text end

new text begin 218,000 new text end

new text begin This appropriation is from the general fund to
be used to facilitate tribal training for state
agencies. The base appropriation from the
general fund is $200,000 in fiscal year 2020
and $200,000 in fiscal year 2021.
new text end

new text begin (c) Buildings new text end

new text begin 37,085,000 new text end

new text begin 37,939,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 54,000 new text end	new text begin 54,000 new text end
new text begin Trunk Highway new text end	new text begin 37,031,000 new text end	new text begin 37,885,000 new text end

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

new text begin The base appropriation from the trunk
highway fund is $37,885,000 in fiscal year
2020 and $37,885,000 in fiscal year 2021.
new text end

new text begin (d) Tort Claims new text end

new text begin 600,000 new text end

new text begin 600,000 new text end

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

new text begin Subd. 6. new text end new text begin Transfers new text end

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

new text begin The commissioner of transportation must
transfer from the flexible highway account in
the county state-aid highway fund the entire
amount in each year to the county turnback
account in the county state-aid highway fund.
The funds transferred are for highway
turnback purposes under Minnesota Statutes,
section 161.081, subdivision 3.
new text end

new text begin Subd. 7. new text end new text begin Previous State Road Construction Appropriations new text end

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

new text begin Subd. 8. new text end new text begin Contingent Appropriations new text end

new text begin The commissioner of transportation, with the
approval of the governor and the written
approval of at least five members of a group
consisting of the members of the Legislative
Advisory Commission under Minnesota
Statutes, section 3.30, and the ranking minority
members of the legislative committees with
jurisdiction over transportation finance, may
transfer all or part of the unappropriated
balance in the trunk highway fund to an
appropriation: (1) for trunk highway design,
construction, or inspection that takes
advantage of an unanticipated receipt of
income to the trunk highway fund or federal
advanced construction funding; (2) for
emergency trunk highway maintenance; or (3)
to pay tort or environmental claims. Nothing
in this subdivision authorizes the
commissioner to increase the use of federal
advanced construction funding beyond
amounts specifically authorized. Any transfer
as a result of the use of federal advanced
construction funding must include an analysis
of the effects on the long-term trunk highway
fund balance. The amount transferred is
appropriated for the purpose of the account to
which it is transferred.
new text end

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

new text begin $ new text end

new text begin 67,400,000 new text end

new text begin $ new text end

new text begin 75,400,000 new text end

new text begin Transit new text end

new text begin 67,400,000 new text end

new text begin 75,400,000 new text end

new text begin This appropriation is from the general fund
for transit system operations. The base
appropriation is $83,400,000 in fiscal year
2020 and $92,400,000 in fiscal year 2021.
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 200,822,000 new text end

new text begin $ new text end

new text begin 201,421,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 14,741,000 new text end	new text begin 14,026,000 new text end
new text begin Trunk Highway new text end	new text begin 111,344,000 new text end	new text begin 111,333,000 new text end
new text begin Highway User new text end	new text begin 10,485,000 new text end	new text begin 10,506,000 new text end
new text begin Special Revenue new text end	new text begin 64,252,000 new text end	new text begin 65,556,000 new text end

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

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

new text begin 13,513,000 new text end

new text begin 13,812,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 5,329,000 new text end	new text begin 5,361,000 new text end
new text begin Trunk Highway new text end	new text begin 6,799,000 new text end	new text begin 7,066,000 new text end
new text begin Highway User new text end	new text begin 1,385,000 new text end	new text begin 1,385,000 new text end

new text begin $640,000 in each year is from the general fund
for payment of public safety officer survivor
benefits under Minnesota Statutes, section
299A.44. If the appropriation for either year
is insufficient, the appropriation for the other
year is available for it.
new text end

new text begin $1,367,000 in each year is from the general
fund to be deposited in the public safety
officer's benefit account. This money is
available for reimbursements under Minnesota
Statutes, section 299A.465.
new text end

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

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

new text begin 113,873,000 new text end

new text begin 112,844,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 9,412,000 new text end	new text begin 8,665,000 new text end
new text begin Trunk Highway new text end	new text begin 103,597,000 new text end	new text begin 103,294,000 new text end
new text begin Highway User new text end	new text begin 864,000 new text end	new text begin 885,000 new text end

new text begin (a) Patrolling Highways new text end

new text begin 96,096,000 new text end

new text begin 94,426,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin General new text end	new text begin 957,000 new text end	new text begin 37,000 new text end
new text begin Trunk Highway new text end	new text begin 95,047,000 new text end	new text begin 94,297,000 new text end
new text begin Highway User new text end	new text begin 92,000 new text end	new text begin 92,000 new text end

new text begin $920,000 is appropriated from the general
fund and $4,830,000 is appropriated from the
trunk highway fund in fiscal year 2018 to
purchase a helicopter for the State Patrol.
These are onetime appropriations.
new text end

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

new text begin 8,550,000 new text end

new text begin 8,997,000 new text end

new text begin (c) Capitol Security new text end

new text begin 8,455,000 new text end

new text begin 8,628,000 new text end

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

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

new text begin (d) Vehicle Crimes Unit new text end

new text begin 772,000 new text end

new text begin 793,000 new text end

new text begin This appropriation is from the highway user
tax distribution fund to investigate:
new text end

new text begin (1) registration tax and motor vehicle sales tax
liabilities from individuals and businesses that
currently do not pay all taxes owed; and
new text end

new text begin (2) illegal or improper activity related to the
sale, transfer, titling, and registration of motor
vehicles.
new text end

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

new text begin 71,060,000 new text end

new text begin 72,345,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2018 new text end	new text begin 2019 new text end
new text begin Highway User new text end	new text begin 8,236,000 new text end	new text begin 8,236,000 new text end
new text begin Special Revenue new text end	new text begin 62,824,000 new text end	new text begin 64,109,000 new text end

new text begin $22,621,000 in fiscal year 2018 and
$23,094,000 in fiscal year 2019 are
appropriated from the vehicle services
operating account in the special revenue fund
under Minnesota Statutes, section 299A.705,
subdivision 1.
new text end

new text begin $32,203,000 in fiscal year 2018 and
$33,015,000 in fiscal year 2019 are
appropriated from the driver services operating
account in the special revenue fund under
Minnesota Statutes, section 299A.705,
subdivision 2.
new text end

new text begin $156,000 in each year is appropriated from
the driver services operating account in the
special revenue fund under Minnesota
Statutes, section 299A.705, subdivision 2, to
maintain the automated knowledge test
system.
new text end

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

new text begin 948,000 new text end

new text begin 973,000 new text end

new text begin $470,000 in each year is appropriated from
the trunk highway fund for maintenance of
the crash record system.
new text end

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

new text begin 1,428,000 new text end

new text begin 1,447,000 new text end

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

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

new text begin $ new text end

new text begin 234,000 new text end

new text begin $ new text end

new text begin 222,000 new text end

new text begin Administration new text end

new text begin 234,000 new text end

new text begin 222,000 new text end

new text begin This appropriation is from the highway user
tax distribution fund to administer the motor
fuels gross receipts tax under Minnesota
Statutes, section 296A.085. The base
appropriation is $222,000 in fiscal year 2020
and $222,000 in fiscal year 2021.
new text end

Sec. 7. new text begin APPROPRIATION CANCELLATION.
new text end

new text begin $1,100,000 of the appropriation for port development assistance under Laws 2015,
chapter 75, article 1, section 3, subdivision 2, paragraph (e), is canceled to the general fund
on June 30, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

TRANSPORTATION BONDS

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

new text begin The sums shown in the column under "Appropriations" are appropriated from the bond
proceeds account in the trunk highway fund to the state agencies or officials indicated, to
be spent for public purposes. Appropriations of bond proceeds must be spent as authorized
by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified, money
appropriated in this article for a capital program or project may be used to pay state agency
staff costs that are attributed directly to the capital program or project in accordance with
accounting policies adopted by the commissioner of management and budget.
new text end

new text begin SUMMARY new text end
new text begin Department of Transportation new text end	new text begin $ new text end	new text begin 2,000,000,000 new text end
new text begin Department of Management and Budget new text end		new text begin 2,000,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 2,002,000,000 new text end

new text begin APPROPRIATIONS new text end

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

new text begin $ new text end

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

new text begin (a) Of the appropriation in this section,
$200,000,000 each year for eight years is to
the commissioner of transportation for the
corridors of commerce program under
Minnesota Statutes, section 161.088, and
$100,000,000 each year for four years is to
the commissioner of transportation for the
construction, reconstruction, and improvement
of trunk highways, including design-build
contracts and use of consultants to support
these activities. In total, the appropriations
under this section are available in the
following amounts:
new text end

new text begin $300,000,000 in fiscal year 2018;
new text end

new text begin $300,000,000 in fiscal year 2019;
new text end

new text begin $300,000,000 in fiscal year 2020;
new text end

new text begin $300,000,000 in fiscal year 2021;
new text end

new text begin $200,000,000 in fiscal year 2022;
new text end

new text begin $200,000,000 in fiscal year 2023;
new text end

new text begin $200,000,000 in fiscal year 2024; and
new text end

new text begin $200,000,000 in fiscal year 2025.
new text end

new text begin The commissioner may use up to 17 percent
of the amount each year for program delivery.
new text end

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

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

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

new text begin $ new text end

new text begin 2,000,000 new text end

new text begin This appropriation is to the commissioner of
management and budget for bond sale
expenses under Minnesota Statutes, sections
16A.641, subdivision 8, and 167.50,
subdivision 4, and is effective through 2026.
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
management and budget shall sell and issue
bonds of the state in amount up to
$2,002,000,000 in the manner, upon the terms,
and with the effect prescribed by Minnesota
Statutes, sections 167.50 to 167.52, and by the
Minnesota Constitution, article XIV, section
11, at the times and in the amounts requested
by the commissioner of transportation. The
proceeds of the bonds, except accrued interest
and any premium received from the sale of
the bonds, must be deposited in the bond
proceeds account in the trunk highway fund.
new text end

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

new text begin This article is effective July 1, 2017.
new text end

ARTICLE 3

MOTOR FUELS GROSS RECEIPTS TAX

Section 1.

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

new text begin Subdivision 1. new text end

new text begin Imposition. new text end

new text begin In addition to other taxes imposed on the use of motor fuels
under this chapter, a motor fuels gross receipts tax is imposed on the first licensed distributor
receiving motor fuel for use in motor vehicles. The motor fuels gross receipts tax is imposed
at the rate of 6-1/2 percent of the average wholesale price of gasoline for Minnesota as
calculated in subdivisions 3 and 4. The motor fuels gross receipts tax is imposed on all
motor fuel, in either a liquid or gaseous form.
new text end

new text begin Subd. 2. new text end

new text begin Exemptions. new text end

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

new text begin Subd. 3. new text end

new text begin Calculation of tax amount per gallon. new text end

new text begin (a) The tax imposed under this section
must be calculated by converting the motor fuels gross receipts tax amount into a tax rate
per gallon. The commissioner of revenue must determine and publish the motor fuels gross
receipts tax amount per gallon annually. The amount is determined by multiplying the
previous calendar year's average wholesale gasoline price for Minnesota, for all grades of
a gallon of gasoline, by 6-1/2 percent. The wholesale price used must not include any tax
or fee that can be assessed by the state of Minnesota or the United States government. The
wholesale price published by the United States Energy Information Administration must
be used to determine the motor fuels gross receipts tax amount per gallon. The minimum
average wholesale price used for this calculation is $2.50 per gallon. By May 1 of each year,
the commissioner must publish the upcoming fiscal year's motor fuels gross receipts tax
amounts per gallon and the current gasoline excise tax amounts per gallon. The motor fuels
gross receipts tax amount per gallon is effective for fuel received during the next fiscal year.
All amounts will be stated in cents per gallon rounded to the nearest one-tenth of a cent,
disregarding amounts less than 0.05 cents and increasing amounts of 0.05 cents to 0.099
cents to the next highest one-tenth of a cent.
new text end

new text begin (b) For the period of October 1, 2017, through June 30, 2018, the motor fuels gross
receipts tax amount per gallon of gasoline is 6-1/2 percent of the greater of $2.50 or the
average wholesale gasoline price for all grades of a gallon of gasoline in Minnesota for
calendar year 2016, as published by the United States Energy Information Administration.
The commissioner must publish the rates on or before August 1, 2017.
new text end

new text begin Subd. 4. new text end

new text begin Calculation of tax amount per gallon for other motor fuels. new text end

new text begin (a) The motor
fuels gross receipts tax on other motor fuels must be computed at the following tax rate:
new text end

new text begin (1) the tax rate per gallon of E85 is 71 percent of the motor fuels gross receipts tax
amount per gallon for gasoline, rounded to the nearest tenth of a cent per gallon;
new text end

new text begin (2) the tax rate per gallon of M85 is 57 percent of the motor fuels gross receipts tax
amount per gallon for gasoline, rounded to the nearest tenth of a cent per gallon;
new text end

new text begin (3) the tax rate per gallon of liquefied petroleum gas (LPG) is 75 percent of the motor
fuels gross receipts tax amount per gallon for gasoline, rounded to the nearest tenth of a
cent per gallon;
new text end

new text begin (4) the tax rate per gallon of liquid natural gas (LNG) is 60 percent of the motor fuels
gross receipts tax amount per gallon for gasoline, rounded to the nearest tenth of a cent per
gallon; and
new text end

new text begin (5) the tax rate per thousand cubic feet of compressed natural gas (CNG) is the same as
the motor fuels gross receipts tax amount per gallon of gasoline.
new text end

new text begin (b) The tax rate per gallon of all other special fuel used as a motor fuel is the same as
the motor fuels gross receipts tax amount per gallon of gasoline.
new text end

new text begin Subd. 5. new text end

new text begin Administrative provisions. new text end

new text begin The motor fuels gross receipts tax must be paid
and filed on a return, as prescribed by the commissioner, in the same manner and time as
prescribed for gasoline tax as set forth in section 296A.15.
new text end

new text begin Subd. 6. new text end

new text begin Deposit of revenues. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to motor fuels received after September 30, 2017.
new text end

Sec. 2.

Minnesota Statutes 2016, section 296A.11, is amended to read:

296A.11 SELLER MAY COLLECT TAX.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 296A.12, is amended to read:

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2016, section 296A.16, subdivision 1, is amended to read:

Subdivision 1.

Credit or refund of gasoline or special fuel tax paid.

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

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

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

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

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

(5) in error;

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 296A.16, subdivision 2, is amended to read:

Subd. 2.

Fuel used in other vehicle; claim for refund.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 296A.16, subdivision 3, is amended to read:

Subd. 3.

Destruction by accident; refund to dealer.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 296A.16, subdivision 4, is amended to read:

Subd. 4.

Refrigerator units; refunds.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2017.
new text end

Sec. 8.

Minnesota Statutes 2016, section 296A.16, subdivision 4a, is amended to read:

Subd. 4a.

Undyed kerosene; refunds.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 296A.16, subdivision 4b, is amended to read:

Subd. 4b.

Racing gasoline; refunds.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 296A.16, subdivision 5, is amended to read:

Subd. 5.

Qualifying service station credit.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2017.
new text end

Sec. 11.

Minnesota Statutes 2016, section 296A.18, subdivision 2, is amended to read:

Subd. 2.

Motorboat.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2016, section 296A.18, subdivision 3, is amended to read:

Subd. 3.

Snowmobile.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2016, section 296A.18, subdivision 4, is amended to read:

Subd. 4.

All-terrain vehicle.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2016, section 296A.18, subdivision 5, is amended to read:

Subd. 5.

Off-highway motorcycles.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2016, section 296A.18, subdivision 6, is amended to read:

Subd. 6.

Off-road vehicle.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2016, section 296A.18, subdivision 7, is amended to read:

Subd. 7.

Forest road.

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

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 4

METROPOLITAN AREA TRANSIT SALES AND USE TAX

Section 1.

Minnesota Statutes 2016, section 297A.99, subdivision 1, is amended to read:

Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may impose
a general sales tax (1) under section 297A.992, (2) new text begin under section 297A.9925, (3) new text end under
section 297A.993, deleted text begin (3) deleted text end new text begin (4) new text end if permitted by special law, or deleted text begin (4) deleted text end new text begin (5) new text end if the political subdivision
enacted and imposed the tax before January 1, 1982, and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political subdivision.
The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997, or

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by reference.

(c) This section does not apply to or preempt a sales tax on motor vehicles or a special
excise tax on motor vehicles.

(d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local option sales tax.

(e) Notwithstanding paragraph (d), a political subdivision may expend funds to:

(1) conduct the referendum;

(2) disseminate information included in the resolution adopted under subdivision 2;

(3) provide notice of, and conduct public forums at which proponents and opponents on
the merits of the referendum are given equal time to express their opinions on the merits of
the referendum;

(4) provide facts and data on the impact of the proposed sales tax on consumer purchases;
and

(5) provide facts and data related to the programs and projects to be funded with the
sales tax.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2017.
new text end

Sec. 2.

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

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given.
new text end

new text begin (b) "Local governmental unit" means any county, city, town, school district, special
district, or other political subdivision or public corporation, other than the council or a
metropolitan agency, located in whole or in part within the metropolitan area.
new text end

new text begin (c) "Metropolitan area" or "area" has the meaning given in section 473.121, subdivision
2.
new text end

new text begin (d) "Metropolitan Council" or "council" means the Metropolitan Council established by
section 473.123.
new text end

new text begin Subd. 2. new text end

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

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

new text begin Subd. 3. new text end

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

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

new text begin Subd. 4. new text end

new text begin Uses; consistency with transportation policy plan. new text end

new text begin (a) The Metropolitan
Council must use the proceeds of the metropolitan area transit sales and use tax imposed
under subdivision 2 for transit purposes within the metropolitan area. This may include but
is not limited to transit operations, capital improvements, design, engineering and
environmental work, acquisition of real property, planning and feasibility studies, and grants
to local governmental units for transit purposes or bicycle and pedestrian projects specified
under subdivision 5.
new text end

new text begin (b) Projects funded with the metropolitan area transit sales and use tax proceeds must
be consistent with the long-range transportation policy plan adopted by the council under
section 473.146.
new text end

new text begin Subd. 5. new text end

new text begin Priorities. new text end

new text begin (a) The council must allocate revenues from the taxes imposed under
this section in a manner consistent with the transit system development and financial plan
required under section 473.1462, and in the following priority order:
new text end

new text begin (1) payment of debt service necessary on bonds or other obligations issued under
subdivision 6;
new text end

new text begin (2) operating and capital costs to preserve existing bus services that conform with regional
transit performance standards specified in the council's transportation policy plan;
new text end

new text begin (3) 100 percent of the net operating costs of existing arterial bus rapid transit lines and
50 percent of the net operating costs of other existing transitways;
new text end

new text begin (4) grants required under paragraph (b);
new text end

new text begin (5) operating and capital costs for the expansion and modernization of regional bus
services, including replacement services provided under section 473.388, under the regional
service improvement plan adopted by the council;
new text end

new text begin (6) operating and capital costs for expansion and improvement of regional transitways;
and
new text end

new text begin (7) any other costs payable under subdivision 4.
new text end

new text begin (b) After accounting for the amounts necessary for paragraph (a), clauses (1), (2), and
(3), the council must make five percent of the remaining revenues available through grants
to local units of government within the metropolitan area for bicycle and pedestrian projects.
The council must establish a grant program, criteria, and oversight procedures for regional
bicycle and pedestrian project grants at least once every two years.
new text end

new text begin Subd. 6. new text end

new text begin Revenue bonds. new text end

new text begin (a) In addition to other authority granted in this section, the
council may, by resolution, authorize the sale and issuance of revenue bonds, notes, or other
obligations to provide funds to (1) implement the council's regional transit system
development and financial plan, and (2) refund bonds issued under this subdivision.
new text end

new text begin (b) The bonds are payable from and secured by a pledge of the revenues identified in
the transit system development and financial plan, including without limitation all or any
part of revenues received from the metropolitan area transit sales and use tax imposed under
subdivision 2 and associated investment earnings on debt proceeds. The council may by
resolution authorize the issuance of the bonds as general obligations of the council. The
bonds must be sold, issued, and secured in the manner provided in chapter 475, and the
council has the same powers and duties as a municipality and its governing body in issuing
bonds under chapter 475, except that no election is required and the net debt limitations in
chapter 475 do not apply to such bonds. The proceeds of the bonds may also be used to
fund necessary reserves and to pay credit enhancement fees, issuance costs, and other
financing costs during the life of the debt.
new text end

new text begin (c) The bonds may be secured by a bond resolution, or a trust indenture entered into by
the council with a corporate trustee within or outside the state, which must define the
revenues and bond proceeds pledged for the payment and security of the bonds. The pledge
must be a valid charge on the revenues received under section 297A.99, subdivision 11.
Neither the state, nor any municipality or political subdivision except the council, nor any
member or officer or employee of the council, is liable on the obligations. No mortgage or
security interest in any tangible real or personal property shall be granted to the bondholders
or the trustee, but they shall have a valid security interest in the revenues and bond proceeds
received by the council and pledged to the payment of the bonds. In the bond resolution or
trust indenture, the council may make such covenants as it determines to be reasonable for
the protection of the bondholders.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2017, and applies in the counties of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington.
new text end

Sec. 3.

new text begin [473.1462] REGIONAL TRANSIT SYSTEM DEVELOPMENT AND
FINANCIAL PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Annual regional transit system development and financial plan. new text end

new text begin By
December 15, 2017, and annually thereafter, the council must prepare and adopt a
comprehensive regional transit system development and financial plan that identifies and
describes the transit system operating and capital investments planned to occur over at least
the following ten calendar years. The council's adopted annual transit operating and capital
budgets must be consistent with the transit system development and financial plan. The
transit system development and financial plan may be amended as needed. The council must
annually submit the plan for review by the Legislative Commission on Metropolitan
Government under section 3.8841.
new text end

new text begin Subd. 2. new text end

new text begin Details on transit operations and capital investments; transit revenues.
new text end

new text begin The regional transit system development and financial plan must detail the transit operations
and capital investments expected for all regional public transit services funded in whole or
in part by the council, including but not limited to regular route bus services operated by
the council, regular route bus services operated by replacement service providers under
section 473.388, Metro Mobility special transportation services provided under section
473.386, other dial-a-ride and vanpool services provided by the council, and all regional
transitway operations and capital investments, with detail provided for each existing or new
transitway line. The plan must also account for all transit revenues expected to be available
to the council, including but not limited to metropolitan area transit sales and use tax revenue
available from the tax imposed under section 297A.9925, subdivision 2, transit fare revenues,
metropolitan area transit state general fund appropriations, motor vehicle sales tax revenues
available through the metropolitan transit assistance account under section 16A.88,
subdivision 2, federal transit funds, regional transit capital bonds issued by the council under
section 473.39, and sales tax revenues allocated to the council by the joint powers board
under section 297A.992. The regional transit system development and financial plan must
be consistent with the adopted regional transportation policy plan, and must detail the
specific transit operations and capital investments expected in each year of the plan. The
plan may account for the use of debt financing and the issuance of bonds as authorized
under section 297A.9925, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies in the counties
of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 473.4051, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

ARTICLE 5

TRANSPORTATION POLICY AND FINANCE

Section 1.

Minnesota Statutes 2016, section 115A.908, is amended to read:

115A.908 MOTOR VEHICLE TRANSFER FEE.

Subdivision 1.

Fee charged.

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

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

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

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

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

Subd. 2.

Deposit of revenue.

new text begin (a) Fee new text end revenue collected under deleted text begin this section shall deleted text end new text begin
subdivision 1, paragraph (a), must new text end be credited to the environmental fund.

new text begin (b) The commissioner must deposit the proceeds of the surcharge under subdivision 1,
paragraph (b), to the following accounts, in amounts as determined by the commissioner
of transportation:
new text end

new text begin (1) the small city streets and bridges account under section 162.145, subdivision 2;
new text end

new text begin (2) the large city streets and bridges account under section 162.146, subdivision 2;
new text end

new text begin (3) the safe routes to school program, for both infrastructure and noninfrastructure grants,
under section 174.40; and
new text end

new text begin (4) the tribal roads account under section 162.147, subdivision 1.
new text end

new text begin (c) Surcharges deposited under paragraph (b) are annually appropriated to the
commissioner for the purposes of the account the surcharge is deposited in.
new text end

Sec. 2.

new text begin [160.801] HIGHWAY SPONSORSHIP PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Sponsorship program. new text end

new text begin (a) The commissioner is authorized to establish
a program designed to encourage businesses, civic groups, or individuals to voluntarily
assist with the improvement and maintenance of real property comprising the state trunk
highway system, including bicycle and pedestrian trails, roadside monuments, and historic
sites.
new text end

new text begin (b) All support provided by volunteers or vendors must be carried out in a manner
consistent with construction and maintenance plans approved by the commissioner after
consultation with the volunteers.
new text end

new text begin (c) The commissioner may provide assistance to enhance the safety and comfort of
volunteers and facilitate the implementation and administration of the sponsorship program.
new text end

new text begin Subd. 2. new text end

new text begin Agreements. new text end

new text begin The commissioner may enter into agreements with businesses,
civic groups, or individuals to volunteer support to maintain and make improvements to
real property included in the trunk highway system. All sponsorship activities must have
prior approval of the commissioner. Agreements under this section are not subject to section
161.32. The volunteer support activities include but are not limited to:
new text end

new text begin (1) work to create, protect, and enhance pollinator habitat along highway rights-of-way;
new text end

new text begin (2) work to pick up litter along roadsides;
new text end

new text begin (3) work to install enhancements, including landscaping materials, on trunk highway
property;
new text end

new text begin (4) financial support provided to the department for specific roadside improvements;
new text end

new text begin (5) financial support consisting of the sponsor hiring a professional landscape contractor
to install vegetation, maintain landscape plantings, or pick up litter, or for other similar
activities along a selected area of highway right-of-way; or
new text end

new text begin (6) installation of features that enhance the aesthetics of trunk highway property or the
amenities available to highway users.
new text end

new text begin Subd. 3. new text end

new text begin Acknowledgment of sponsors. new text end

new text begin The commissioner may publicly recognize and
express appreciation to businesses, civic groups, and individuals that provide volunteer
funding or services under the sponsorship program. The recognition may include signs
acknowledging the sponsorship.
new text end

new text begin Subd. 4. new text end

new text begin Revenue. new text end

new text begin Funds received under this section must be deposited in the trunk
highway fund and are annually appropriated to the commissioner for the purpose specified
by the donation.
new text end

new text begin Subd. 5. new text end

new text begin Prohibition. new text end

new text begin The commissioner must not take action under this section that
would result in the loss of federal highway funds or require payment of highway funds to
the federal government.
new text end

Sec. 3.

Minnesota Statutes 2016, section 161.081, subdivision 3, is amended to read:

Subd. 3.

Flexible highway account; turnback accounts.

(a) The flexible highway
account is created in the state treasury. Money in the account shall be used:

deleted text begin (1) in fiscal years 2009 and 2010, 100 percent of the excess sum, as calculated in
paragraph (i), and in fiscal years 2011 and thereafter, deleted text end 50 percent of the excess sum, as
calculated in paragraph (i), for counties in the metropolitan area, as defined in section
473.121, subdivision 4, but for the purposes of the calculation cities of the first class will
be excluded in the metropolitan area; and

(2) of the amount available in the flexible highway account less the amount under clause
(1), as determined by the commissioner under this section for:

(i) restoration of former trunk highways that have reverted to counties or to statutory or
home rule charter cities, or for trunk highways that will be restored and subsequently turned
back by agreement between the commissioner and the local road authority;

(ii) safety improvements on county highways, municipal highways, streets, or town
roads; and

(iii) routes of regional significance.

(b) For purposes of this subdivision, "restoration" means the level of effort required to
improve the route that will be turned back to an acceptable condition as determined by
agreement made between the commissioner and the county or city before the route is turned
back.

(c) The commissioner shall review the need for funds to restore highways that have been
or will be turned back. The commissioner shall determine, on a biennial basis, the percentage
of funds in the flexible highway account to be distributed to each district, and within each
district the percentage to be used for each of the purposes specified in paragraph (a). Money
in the account may be used for safety improvements and routes of regional significance
only after money is set aside to restore the identified turnbacks. The commissioner shall
make these determinations only after meeting and holding discussions with committees
selected by the statewide associations of both county commissioners and municipal officials.
The commissioner shall, to the extent feasible, annually allocate 50 percent of the funds in
the flexible highway account to the department's metropolitan district, and 50 percent to
districts in greater Minnesota.

(d) Money that will be used for the restoration of trunk highways that have reverted or
that will revert to cities must be deposited in the municipal turnback account, which is
created in the state treasury.

(e) Money that will be used for the restoration of trunk highways that have reverted or
that will revert to counties must be deposited in the county turnback account, which is
created in the state treasury.

(f) Money that will be used for safety improvements must be deposited in the highway
safety improvement account, which is created in the state treasury to be used as grants to
statutory or home rule charter cities, towns, and counties to assist in paying the costs of
constructing or reconstructing city streets, county highways, or town roads to reduce crashes,
deaths, injuries, and property damage.

(g) Money that will be used for routes of regional significance must be deposited in the
routes of regional significance account, which is created in the state treasury, and used as
grants to statutory or home rule charter cities, towns, and counties to assist in paying the
costs of constructing or reconstructing city streets, county highways, or town roads with
statewide or regional significance that have not been fully funded through other state, federal,
or local funding sources.

(h) As part of each biennial budget submission to the legislature, the commissioner shall
describe how the money in the flexible highway account will be apportioned among the
county turnback account, the municipal turnback account, the trunk highway fund for routes
turned back to local governments by agreement, the highway safety improvement account,
and the routes of regional significance account.

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

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

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

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

deleted text begin (j) For purposes of this subdivision, the United States Consumer Price Index identified
in paragraph (i), clause (2), is for all urban consumers, United States city average, as
determined by the United States Department of Labor.
deleted text end

Sec. 4.

Minnesota Statutes 2016, section 161.3212, is amended to read:

161.3212 WORKING CAPITAL FUND.

new text begin (a) new text end The commissioner, to the extent allowed by other law or contract, may grant available
money that has been appropriated for socially or economically disadvantaged business
programs to a guaranty fund administered by a nonprofit organization that makes or
guarantees working capital loans to small business concerns owned and operated by socially
and economically disadvantaged individuals. "Small business concern" and "socially and
economically disadvantaged individual" have the meanings given them in Code of Federal
Regulations, title 49, section 26.5. The purpose of loans made or guaranteed by the
organization must be to provide short-term working capital to enable eligible businesses to
be awarded contracts for goods and services or for construction-related services from
government agencies.

new text begin (b) new text end Money contributed from a constitutionally or statutorily dedicated fund must be used
only for purposes consistent with the purposes of the dedicated fund. new text begin Notwithstanding
section 16A.28, money deposited in the fund does not lapse and is available until expended.
new text end

Sec. 5.

Minnesota Statutes 2016, section 161.46, subdivision 2, is amended to read:

Subd. 2.

Relocation of facilities; reimbursement.

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

new text begin (b) Notwithstanding paragraph (a), any utility facility installed after August 1, 2017, is
not eligible for relocation reimbursement.
new text end

Sec. 6.

new text begin [162.146] LARGE CITIES ASSISTANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Eligible city" means a statutory or home rule charter city that receives municipal
state aid under sections 162.09 to 162.14 in the calendar year in which funds are distributed
under this section.
new text end

new text begin (c) "Population" means the most recent population estimated or established as of 30 days
before the date of an allocation under subdivision 4, of: (1) the most recent federal census,
(2) a special census conducted under contract with the United States Census Bureau, (3) a
population estimate made by the Metropolitan Council under section 473.24, or (4) a
population estimate of the state demographer made under section 4A.02.
new text end

new text begin (d) "Total population" means the sum of populations of all eligible cities.
new text end

new text begin Subd. 2. new text end

new text begin Large cities assistance account. new text end

new text begin A large cities assistance account is created
in the special revenue fund. The account consists of funds as provided by law, and any other
money donated, allotted, transferred, or otherwise provided to the account. Money in the
account may only be expended as provided under this section.
new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin (a) Subject to funds made available by law, the commissioner
must allocate all funds as provided in subdivision 4 and must notify the commissioner of
revenue.
new text end

new text begin (b) Following notification from the commissioner of transportation, the commissioner
of revenue must distribute the specified funds to cities in the same manner as local
government aid under chapter 477A. An appropriation to the commissioner of transportation
under this section is available to the commissioner of revenue for the purposes specified in
this paragraph.
new text end

new text begin (c) Notwithstanding any other law to the contrary, a city must conform to the standards
in section 477A.017, subdivision 2, to be eligible to receive distributions under this section.
A city that receives funds under this section must make and preserve records necessary to
show that fund expenditures comply with subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Distribution formula. new text end

new text begin In each fiscal year in which funds are available under
this section, the commissioner shall allocate funds to eligible cities as follows:
new text end

new text begin (1) 50 percent of the funds allocated proportionally based on each city's share of
population compared to total population of all eligible cities; and
new text end

new text begin (2) 50 percent of the funds allocated based on each city's share of money needs, as
determined by the commissioner under section 162.13, subdivision 3, compared to the total
money needs of all eligible cities.
new text end

new text begin Subd. 5. new text end

new text begin Use of funds. new text end

new text begin (a) Funds distributed under this section are available only for
construction, improvement, and maintenance of roads and bridges located within the city,
including but not limited to:
new text end

new text begin (1) land acquisition, environmental analysis, design, engineering, construction,
reconstruction, and maintenance;
new text end

new text begin (2) road projects partially located within the city; and
new text end

new text begin (3) cost participation on road projects under the jurisdiction of another unit of government.
new text end

new text begin (b) Funds distributed under this section are not subject to state-aid requirements under
this chapter, including but not limited to engineering standards adopted by the commissioner
in administrative rules.
new text end

Sec. 7.

new text begin [162.147] TRIBAL ROADS ASSISTANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Tribal roads assistance account. new text end

new text begin A tribal roads assistance account is
created in the special revenue fund. The account consists of funds as provided by law, and
any other money donated, allotted, transferred, or otherwise provided to the account. Money
in the account may only be expended as provided under this section.
new text end

new text begin Subd. 2. new text end

new text begin Distribution of funds. new text end

new text begin The commissioner, in consultation with the advocacy
council on tribal transportation, must devise a formula to distribute the funds to all 11
federally recognized tribal nations in Minnesota.
new text end

Sec. 8.

Minnesota Statutes 2016, section 168.013, subdivision 1a, is amended to read:

Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined in
section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax shall be
new text begin an amount equal to a combination of the following:
new text end

new text begin (1) new text end $10 new text begin for vehicles with registration periods beginning on or before June 30, 2020, and
$20 for vehicles with registration periods beginning on or after July 1, 2020, new text end plus

new text begin (2) new text end an additional tax equal to new text begin the following:
new text end

new text begin (i) new text end 1.25 percent of the base value deleted text begin . deleted text end new text begin for vehicles with registration periods ending on or
before December 31, 2017;
new text end

new text begin (ii) 1.35 percent of the base value for vehicles with registration periods beginning on or
after January 1, 2018, and before July 1, 2018;
new text end

new text begin (iii) 1.45 percent of the base value for vehicles with registration periods beginning on
or after July 1, 2018, and before July 1, 2019; and
new text end

new text begin (iv) 1.50 percent of the base value for vehicles with registration periods beginning on
or after July 1, 2019.
new text end

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

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

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

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

FROM			TO
$	0		$ 199.99
$	200		$ 399.99

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2016, section 168.33, subdivision 7, is amended to read:

Subd. 7.

Filing fees; allocations.

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

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

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

deleted text begin (2) deleted text end new text begin (3) a new text end $10 new text begin filing fee new text end is imposed on every other type of vehicle transaction, including
motor carrier fuel licenses under sections 168D.05 and 168D.06, and pro rate transactions.

(b) Notwithstanding paragraph (a):

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

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

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

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

(e) The fees collected under this subdivision by the department must be allocated as
follows:

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

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

(ii) $1.50 must be deposited:

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

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

(2) of the fees collected under paragraph (a), clause (2):

(i) $3.50 must be deposited in the general fund;

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

(iii) $1.50 must be deposited:

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

(B) after completion of the deposit of funds under subitem (A) in the vehicle services
operating account deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) of the surcharge collected under paragraph (a), clause (2), amounts must be determined
by the commissioner of transportation and deposited in:
new text end

new text begin (i) the small city streets and bridges account under section 162.145, subdivision 1;
new text end

new text begin (ii) the larger city streets and bridges account under section 162.146;
new text end

new text begin (iii) the safe routes to school program, for both infrastructure and noninfrastructure
grants, under section 174.40; and
new text end

new text begin (iv) the tribal roads account under section 162.147.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2016, section 169.86, subdivision 5, is amended to read:

Subd. 5.

Fees; proceeds deposited; appropriation.

The commissioner, with respect to
highways under the commissioner's jurisdiction, may charge a fee for each permit issued.
deleted text begin The fee for an annual permit that expires by law on the date of the vehicle registration
expiration must be based on the proportion of the year that remains until the expiration date. deleted text end
Unless otherwise specified, all fees for permits issued by the commissioner of transportation
must be deposited in the state treasury and credited to the trunk highway fund. Except for
those annual permits for which the permit fees are specified elsewhere in this chapter, the
fees are:

(a) $15 for each single trip permit.

(b) $36 for each job permit. A job permit may be issued for like loads carried on a specific
route for a period not to exceed two months. "Like loads" means loads of the same product,
weight, and dimension.

(c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
months. Annual permits may be issued for:

(1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety or
well-being of the public;

(2) motor vehicles that travel on interstate highways and carry loads authorized under
subdivision 1a;

(3) motor vehicles operating with gross weights authorized under section 169.826,
subdivision 1a;

(4) special pulpwood vehicles described in section 169.863;

(5) motor vehicles bearing snowplow blades not exceeding ten feet in width;

(6) noncommercial transportation of a boat by the owner or user of the boat; and

(7) motor vehicles carrying bales of agricultural products authorized under section
169.862.

(d) $120 for an oversize annual permit to be issued for a period not to exceed 12
consecutive months. Annual permits may be issued for:

(1) mobile cranes;

(2) construction equipment, machinery, and supplies;

(3) manufactured homes and manufactured storage buildings;

(4) implements of husbandry;

(5) double-deck buses;

(6) commercial boat hauling and transporting waterfront structures, including, but not
limited to, portable boat docks and boat lifts;

(7) three-vehicle combinations consisting of two empty, newly manufactured trailers
for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however, the
permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer only
while operating on twin-trailer routes designated under section 169.81, subdivision 3,
paragraph (c); and

(8) vehicles operating on that portion of marked Trunk Highway 36 described in section
169.81, subdivision 3, paragraph (e).

(e) For vehicles that have axle weights exceeding the weight limitations of sections
169.823 to 169.829, an additional cost added to the fees listed above. However, this paragraph
applies to any vehicle described in section 168.013, subdivision 3, paragraph (b), but only
when the vehicle exceeds its gross weight allowance set forth in that paragraph, and then
the additional cost is for all weight, including the allowance weight, in excess of the permitted
maximum axle weight. The additional cost is equal to the product of the distance traveled
times the sum of the overweight axle group cost factors shown in the following chart:

	Overweight Axle Group Cost Factors
Weight (pounds)		Cost Per Mile For Each Group Of:
exceeding weight limitations on axles		Two consecutive axles spaced within 8 feet or less		Three consecutive axles spaced within 9 feet or less		Four consecutive axles spaced within 14 feet or less
0-2,000		.12		.05		.04
2,001-4,000		.14		.06		.05
4,001-6,000		.18		.07		.06
6,001-8,000		.21		.09		.07
8,001-10,000		.26		.10		.08
10,001-12,000		.30		.12		.09
12,001-14,000		Not permitted		.14		.11
14,001-16,000		Not permitted		.17		.12
16,001-18,000		Not permitted		.19		.15
18,001-20,000		Not permitted		Not permitted		.16
20,001-22,000		Not permitted		Not permitted		.20

The amounts added are rounded to the nearest cent for each axle or axle group. The additional
cost does not apply to paragraph (c), clauses (1) and (3).

For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
in addition to the normal permit fee. Miles must be calculated based on the distance already
traveled in the state plus the distance from the point of detection to a transportation loading
site or unloading site within the state or to the point of exit from the state.

(f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
or oversize and overweight, mobile cranes; construction equipment, machinery, and supplies;
implements of husbandry; and commercial boat hauling. The fees for the permit are as
follows:

Gross Weight (pounds) of Vehicle		Annual Permit Fee
90,000	or less	$200
90,001	- 100,000	$300
100,001	- 110,000	$400
110,001	- 120,000	$500
120,001	- 130,000	$600
130,001	- 140,000	$700
140,001	- 145,000	$800
145,001	- 155,000	$900

If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined
under paragraph (e).

(g) For vehicles which exceed the width limitations set forth in section 169.80 by more
than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a) when
the permit is issued while seasonal load restrictions pursuant to section 169.87 are in effect.

(h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on a
single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
subdivision 2, 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds
on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.

(i) $300 for a motor vehicle described in section 169.8261. The fee under this paragraph
must be deposited as follows:

(1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for
costs related to administering the permit program and inspecting and posting bridges; and

(2) all remaining money in each fiscal year must be deposited in the bridge inspection
and signing account as provided under subdivision 5b.

(j) deleted text begin Beginning August 1, 2006, deleted text end $200 for an annual permit for a vehicle operating under
authority of section 169.824, subdivision 2, clause (2).

Sec. 11.

Minnesota Statutes 2016, section 169.865, subdivision 1, is amended to read:

Subdivision 1.

Six-axle vehicles.

(a) A road authority may issue an annual permit
authorizing a vehicle or combination of vehicles with a total of six or more axles to haul
raw or unprocessed agricultural products and be operated with a gross vehicle weight of up
to:

(1) 90,000 pounds; and

(2) 99,000 pounds during the period set by the commissioner under section 169.826,
subdivision 1.

(b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or combination
of vehicles operated under this subdivision and transporting only sealed intermodal containers
may be operated on an interstate highway if allowed by the United States Department of
Transportation.

(c) The fee for a permit issued under this subdivision is $300 deleted text begin , or a proportional amount
as provided in section 169.86, subdivision 5 deleted text end .

Sec. 12.

Minnesota Statutes 2016, section 169.865, subdivision 2, is amended to read:

Subd. 2.

Seven-axle vehicles.

(a) A road authority may issue an annual permit authorizing
a vehicle or combination of vehicles with a total of seven or more axles to haul raw or
unprocessed agricultural products and be operated with a gross weight of up to:

(1) 97,000 pounds; and

(2) 99,000 pounds during the period set by the commissioner under section 169.826,
subdivision 1.

(b) Drivers of vehicles operating under this subdivision must comply with driver
qualification requirements adopted under section 221.0314, subdivisions 2 to 5, and Code
of Federal Regulations, title 49, parts 40 and 382, unless exempt under section 221.031,
subdivision 2c.

(c) The fee for a permit issued under this subdivision is $500 deleted text begin , or a proportional amount
as provided in section 169.86, subdivision 5 deleted text end .

Sec. 13.

Minnesota Statutes 2016, section 169.866, subdivision 3, is amended to read:

Subd. 3.

Permit fee; appropriation.

Vehicle permits issued under subdivision 1 must
be annual permits. The fee is $850 for each vehicle deleted text begin , or a proportional amount as provided
in section 169.86, subdivision 5, deleted text end and must be deposited in the trunk highway fund. An
amount sufficient to administer the permit program is appropriated from the trunk highway
fund to the commissioner for the costs of administering the permit program.

Sec. 14.

new text begin [174.57] SNOW AND ICE CONTROL.
new text end

new text begin The commissioner of transportation, upon written notification to the commissioner of
management and budget and the chairs and ranking minority members of the house of
representatives and senate committees having jurisdiction over transportation finance, may
transfer all or part of the unappropriated balance in the trunk highway fund to pay for snow
and ice management expenditures if the Department of Transportation spends more than
110 percent of its biennial targeted investment level for snow and ice management. The
amount transferred is appropriated for the purposes of the account to which it is transferred.
new text end

Sec. 15.

Minnesota Statutes 2016, section 219.015, subdivision 1, is amended to read:

Subdivision 1.

Positions established; duties.

(a) The commissioner of transportation
shall establish deleted text begin three deleted text end new text begin a new text end state rail safety deleted text begin inspector positions in the Office of Freight and
Commercial Vehicle Operations of the Minnesota Department of Transportation. On or
after July 1, 2015, the commissioner may establish a fourth state rail safety inspector position
following consultation with railroad companies. deleted text end new text begin inspection program, consisting of up to
nine positions. new text end The commissioner shall apply to and enter into agreements with the Federal
Railroad Administration (FRA) of the United States Department of Transportation to
participate in the federal State Rail Safety Participation Program for training and certification
of deleted text begin an inspector deleted text end new text begin inspectors new text end under authority of United States Code, title 49, sections 20103,
20105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.

(b) A state rail safety inspector deleted text begin shall deleted text end new text begin may: (1) new text end inspect mainline track, secondary track,
and yard and industry track; new text begin (2) new text end inspect railroad right-of-way, including adjacent or
intersecting drainage, culverts, bridges, overhead structures, and traffic and other public
crossings; new text begin (3) new text end inspect yards deleted text begin and deleted text end new text begin , new text end physical plants new text begin , and train equipment new text end ; new text begin (4) new text end review and enforce
safety requirements; new text begin (5) new text end review maintenance and repair records; and new text begin (6) new text end review railroad
security measures.

(c) A state rail safety inspector may perform, but is not limited to, the duties described
in the federal State Rail Safety Participation Program. An inspector may train, be certified,
and participate in any of the federal State Rail Safety Participation Program disciplines,
including: track, signal and train control, motive power and equipment, operating practices
compliance, hazardous materials, and highway-rail grade crossings.

(d) To the extent delegated by the Federal Railroad Administration and authorized by
the commissioner, an inspector may issue citations for violations of this chapter, or to ensure
railroad employee and public safety and welfare.

Sec. 16.

Minnesota Statutes 2016, section 219.015, subdivision 2, is amended to read:

Subd. 2.

Railroad company assessment; account; appropriation.

(a) As provided in
this subdivision, the commissioner shall annually assess railroad companies that are new text begin : new text end (1)
defined as common carriers under section 218.011; (2) classified by federal law or regulation
as Class I Railroads, Class I Rail Carriers, Class II Railroads, or Class II Carriers; and (3)
operating in this state.

(b) The assessment must deleted text begin be by a division of deleted text end new text begin allocate new text end state rail safety deleted text begin inspector deleted text end new text begin inspection new text end
program costs deleted text begin in equal proportion between deleted text end new text begin proportionally among new text end carriers based on route
miles operated in Minnesota deleted text begin , assessed in equal amounts for 365 days of the calendar year deleted text end new text begin
at the time of the assessment new text end . The commissioner deleted text begin shall deleted text end new text begin must new text end assess new text begin for new text end all deleted text begin start-up or
re-establishment costs, all related costs of initiating deleted text end new text begin costs of new text end the state rail safety inspector
program deleted text begin , and ongoing state rail inspector duties deleted text end new text begin including but not limited to administration,
supervision, travel, equipment, and training new text end .

(c) deleted text begin The deleted text end new text begin A state rail safety inspection account is created in the special revenue fund. The
account consists of funds as provided by law, and any other money donated, allotted,
transferred, or otherwise provided to the account. new text end Assessments new text begin collected under this
subdivision new text end must be deposited in deleted text begin a special account in the special revenue fund, to be known
as deleted text end the state rail safety inspection account. Money in the account is appropriated to the
commissioner for the establishment and ongoing responsibilities of the state rail safety
deleted text begin inspector deleted text end new text begin inspection new text end program.

Sec. 17.

new text begin [219.016] CRUDE OIL AND HAZARDOUS MATERIALS RAIL SAFETY
ASSESSMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Assessment. new text end

new text begin (a) As provided in this section, the commissioner shall
annually assess railroad companies that are: (1) defined as common carriers under section
218.011; (2) classified by federal law or regulation as Class I Railroads or Class I Rail
Carriers; and (3) operating in this state. The total assessment amount under this section must
not exceed $32,500,000 annually.
new text end

new text begin (b) The assessment must be allocated proportionally among carriers based on route miles
operated in Minnesota at the time of the assessment.
new text end

new text begin Subd. 2. new text end

new text begin Account created; appropriation. new text end

new text begin (a) A crude oil and hazardous materials rail
safety account is created in the special revenue fund. The account consists of funds as
provided by law, and any other money donated, allotted, transferred, or otherwise provided
to the account. Assessments collected under this section must be deposited in the crude oil
and hazardous materials rail safety account.
new text end

new text begin (b) Money in the account is appropriated to the commissioner for the planning,
engineering, administration, and construction of highway-rail grade crossing improvements
on rail corridors transporting crude oil and other hazardous materials. Improvements may
include upgrades to existing protection systems, the closing of crossings and necessary
roadwork, and reconstruction of at-grade crossings to full grade separations. Funds in the
account are available until expended.
new text end

Sec. 18.

Minnesota Statutes 2016, section 219.1651, is amended to read:

219.1651 GRADE CROSSING SAFETY ACCOUNT.

A Minnesota grade crossing safety account is created in the special revenue fund deleted text begin ,
consisting of money credited to the account by law deleted text end . new text begin The account consists of funds as provided
by law, and any other money donated, allotted, transferred, or otherwise provided to the
account. new text end Money in the account is appropriated to the commissioner of transportation for
rail-highway grade crossing safety projects on public streets and highways, including
new text begin planning, new text end engineering new text begin , and other new text end costs new text begin associated with the administration and delivery of
grade crossing safety projects new text end . At the discretion of the commissioner of transportation,
money in the account at the end of each biennium may cancel to the trunk highway fund.

Sec. 19.

Minnesota Statutes 2016, section 222.49, is amended to read:

222.49 RAIL SERVICE IMPROVEMENT ACCOUNT; APPROPRIATION.

The rail service improvement account is created in the special revenue fund deleted text begin in the state
treasury deleted text end . The deleted text begin commissioner shall deposit in this deleted text end account deleted text begin all deleted text end new text begin consists of funds as provided
by law, and any other new text end money deleted text begin appropriated to or received by the department for the purpose
of rail service improvement deleted text end new text begin donated, allotted, transferred, or otherwise provided to the
account new text end , excluding bond proceeds as authorized by article XI, section 5, clause (i) new text begin , new text end of the
Minnesota Constitution. All money so deposited is appropriated to the department for
expenditure for rail service improvement in accordance with applicable state and federal
law. This appropriation shall not lapse but shall be available until the purpose for which it
was appropriated has been accomplished. deleted text begin No money appropriated to the department for the
purposes of administering the rail service improvement program shall be deposited in the
rail service improvement account nor shall such administrative costs be paid from the
account.
deleted text end

Sec. 20.

Minnesota Statutes 2016, section 222.50, subdivision 6, is amended to read:

Subd. 6.

Grants.

The commissioner may approve grants from the rail service
improvement account for deleted text begin payment of up to 50 percent of the nonfederal share of the cost
of any rail line project under the federal rail service continuation program deleted text end new text begin freight rail service
improvements that support economic development new text end .

Sec. 21.

Minnesota Statutes 2016, section 222.50, subdivision 7, is amended to read:

Subd. 7.

Expenditures.

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

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

(2) to pay a portion of the costs of capital improvement projects designed to improve
rail service of a rail user or a rail carrier;

(3) to pay a portion of the costs of rehabilitation projects designed to improve rail service
of a rail user or a rail carrier;

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

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

(6) to pay a portion of the costs of acquiring a rail line by a regional railroad authority
established pursuant to chapter 398A;

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

(8) deleted text begin for expenditures made before July 1, 2017, to pay the state matching portion of grants
under the federal Transportation Investment Generating Economic Recovery (TIGER)
program of the United States Department of Transportation deleted text end new text begin to pay the state matching portion
of federal grants for freight rail projects new text end ;

(9) to fund rail planning deleted text begin studies deleted text end new text begin activities and other administrative and program expenses new text end ;
and

(10) to pay a portion of the costs of capital improvement projects designed to improve
capacity or safety at rail yards.

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

Sec. 22.

Minnesota Statutes 2016, section 299D.03, subdivision 5, is amended to read:

Subd. 5.

Traffic fines and forfeited bail money.

(a) All fines and forfeited bail money
collected from persons apprehended or arrested by officers of the State Patrol shall be
transmitted by the person or officer collecting the fines, forfeited bail money, or installments
thereof, on or before the tenth day after the last day of the month in which these moneys
were collected, to the commissioner of management and budget. Except where a different
disposition is required in this subdivision or section 387.213, or otherwise provided by law,
three-eighths of these receipts must be deposited in the state treasury and credited to the
state general fund. The other five-eighths of these receipts must be deposited in the state
treasury and credited deleted text begin as follows: (1) the first $1,000,000 in each fiscal year must be credited deleted text end
to the Minnesota grade crossing safety account in the special revenue fund deleted text begin , and (2) remaining
receipts must be credited to the state trunk highway fund deleted text end . If, however, the violation occurs
within a municipality and the city attorney prosecutes the offense, and a plea of not guilty
is entered, one-third of the receipts shall be deposited in the state treasury and credited to
the state general fund, one-third of the receipts shall be paid to the municipality prosecuting
the offense, and one-third shall be deposited in the state treasury and credited to the
Minnesota grade crossing safety account or the state trunk highway fund as provided in this
paragraph. When section 387.213 also is applicable to the fine, section 387.213 shall be
applied before this paragraph is applied. All costs of participation in a nationwide police
communication system chargeable to the state of Minnesota shall be paid from appropriations
for that purpose.

(b) All fines and forfeited bail money from violations of statutes governing the maximum
weight of motor vehicles, collected from persons apprehended or arrested by employees of
the state of Minnesota, by means of stationary or portable scales operated by these employees,
shall be transmitted by the person or officer collecting the fines or forfeited bail money, on
or before the tenth day after the last day of the month in which the collections were made,
to the commissioner of management and budget. Five-eighths of these receipts shall be
deposited in the state treasury and credited to the state highway user tax distribution fund.
Three-eighths of these receipts shall be deposited in the state treasury and credited to the
state general fund.

Sec. 23. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 169.826, subdivision 7; 169.8261, subdivision 3;
169.86, subdivision 5a; 169.863, subdivision 3; 169.865, subdivision 5; and 169.866,
subdivision 4, new text end new text begin and new text end new text begin Laws 2012, chapter 287, article 1, section 1, subdivision 6, new text end new text begin are repealed.
new text end

ARTICLE 6

PUBLIC SAFETY POLICY AND FINANCE

Section 1.

Minnesota Statutes 2016, section 168.33, subdivision 7, is amended to read:

Subd. 7.

Filing fees; allocations.

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

(1) $6 is imposed on every vehicle registration renewal, excluding pro rate transactions;
and

(2) $10 is imposed on every other type of vehicle transaction, including motor carrier
fuel licenses under sections 168D.05 and 168D.06, and pro rate transactions.

(b) Notwithstanding paragraph (a):

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

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

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

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

(e) The fees collected under this subdivision by the department must be allocated as
follows:

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

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

(ii) $1.50 must be deposited:

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

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

(2) of the fees collected under paragraph (a), clause (2):

(i) $3.50 must be deposited in the general fund;

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

(iii) $1.50 must be deposited:

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

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

Sec. 2.

Minnesota Statutes 2016, 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 :
deleted text end

deleted text begin (i) until December 31, 2016, $6.25 of which $3.25 must be paid into the vehicle services
operating account of the special revenue fund under section 299A.705, and from July 1,
2012, to June 30, 2016, a surcharge of $1 must be added to the fee and credited to the driver
and vehicle services technology account; and
deleted text end

deleted text begin (ii) on and after January 1, 2017, deleted text end $8.25 of which $4.15 must be paid into the vehicle
services operating account;

(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) deleted text begin until December 31, 2016, deleted text end 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 deleted text begin , and from
July 1, 2012, to June 30, 2016, a surcharge of $1 must be added to the fee and credited to
the driver and vehicle services technology account deleted text end ;

(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; and

(5) for issuing a duplicate certificate of title, the sum of $7.25 of which $3.25 must be
paid into the vehicle services operating account of the special revenue fund under section
299A.705 deleted text begin ; from July 1, 2012, to June 30, 2016, a surcharge of $1 must be added to the fee
and credited to the driver and vehicle services technology account deleted text end .

(b) In addition to the fee required under paragraph (a), clause (1), 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. 3.

Minnesota Statutes 2016, section 171.06, subdivision 2, is amended to read:

Subd. 2.

Fees.

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

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

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

(d) In addition to the fee required under paragraph (a), a driver's license agent may charge
and retain a filing fee as provided under section 171.061, subdivision 4.

(e) In addition to the fee required under paragraph (a), the commissioner shall charge a
filing fee at the same amount as a driver's license agent under section 171.061, subdivision
4. Revenue collected under this paragraph must be deposited in the driver services operating
account.

(f) An application for a Minnesota identification card, instruction permit, provisional
license, or driver's license, including an application for renewal, must contain a provision
that allows the applicant to add to the fee under paragraph (a), a $2 donation for the purposes
of public information and education on anatomical gifts under section 171.075.

Sec. 4.

Minnesota Statutes 2016, section 299A.705, subdivision 3, is amended to read:

Subd. 3.

Driver and vehicle services technology account new text begin ; technology surcharge new text end .

(a)
The driver and vehicle services technology account is created in the special revenue fund deleted text begin ,
consisting deleted text end new text begin . The account consists new text end of deleted text begin the deleted text end new text begin : (1) a new text end technology surcharge new text begin equaling $1 new text end collected
deleted text begin as specified in chapters deleted text end new text begin for each vehicle registration renewal transaction under chapter new text end 168 deleted text begin , deleted text end
deleted text begin 168A, and 171 deleted text end ; new text begin (2) new text end the filing fee revenue collected new text begin and allocated new text end under section 168.33,
subdivision 7; new text begin (3) a technology surcharge equaling $1 for transactions under section 168A.29,
subdivision 1, paragraph (a), clauses (1), (3), and (5); (4) a technology surcharge equaling
$1 for transactions under section 171.06, subdivision 2, paragraph (a); new text end and new text begin (5) new text end any other
money otherwise donated, allotted, appropriated, or legislated to deleted text begin this deleted text end new text begin the new text end account.

(b) Money in the account is annually appropriated to the commissioner of public safety
to support the research, development, deployment, and maintenance of a driver and vehicle
services information system.

deleted text begin (c) Following completion of the deposit of filing fee revenue into the driver and vehicle
services technology account as provided under section 168.33, subdivision 7, the
commissioner shall submit a notification to the chairs and ranking minority members of the
legislative committees with jurisdiction over transportation policy and finance concerning
driver and vehicle services information system implementation, which must include
information on (1) total revenue deposited in the driver and vehicle services technology
account, with a breakdown by sources of funds; (2) total project costs incurred, with a
breakdown by key project components; and (3) an estimate of ongoing system maintenance
costs.
deleted text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 168.013, subdivision 21, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-2522

168.013 VEHICLE REGISTRATION TAXES.

Subd. 21.

Technology surcharge.

For every vehicle registration renewal required under this chapter, the commissioner shall collect a surcharge of: (1) $1.75 until June 30, 2012; and (2) $1 from July 1, 2012, to June 30, 2016. Surcharges collected under this subdivision must be credited to the driver and vehicle services technology account in the special revenue fund under section 299A.705.

169.826 GROSS WEIGHT SEASONAL INCREASES.

Subd. 7.

Expiration date.

Upon request of the permit applicant, the expiration date for a permit issued under this section must be the same as the expiration date of the permitted vehicle's registration.

169.8261 GROSS WEIGHT LIMITATIONS; FOREST PRODUCTS.

Subd. 3.

Expiration date.

Upon request of the permit applicant, the expiration date for a permit issued under this section must be the same as the expiration date of the permitted vehicle's registration.

169.86 SPECIAL PERMIT TO EXCEED HEIGHT, WIDTH, OR LOAD; FEES.

Subd. 5a.

Additional tax for excessive gross weight.

When a special permit is issued under this chapter, the commissioner shall collect in addition to the permit fee an additional tax for excessive gross weight, if the weight allowed under the permit is greater than the gross weight for which the vehicle is registered under section 168.013. The tax shall be calculated as the difference between the registration tax paid under section 168.013, subdivision 1e, and the additional tax that would be due under section 168.013, subdivision 1e, at the gross weight allowed under the permit, prorated by the number of days for which the permit is effective. Proceeds of the surcharge must be deposited in the state treasury and credited to the highway user tax distribution fund.

169.863 SPECIAL PULPWOOD VEHICLE PERMIT.

Subd. 3.

Expiration date.

Upon request of the permit applicant, the expiration date for a permit issued under this section must be the same as the expiration date of the permitted vehicle's registration.

169.865 SPECIAL FARM PRODUCTS PERMITS.

Subd. 5.

Expiration date.

Upon request of the permit applicant, the expiration date for a permit issued under this section must be the same as the expiration date of the permitted vehicle's registration.

169.866 SPECIAL CANOLA-HAULING VEHICLE PERMIT.

Subd. 4.

Expiration date.

Upon request of the permit applicant, the expiration date for a permit issued under this section must be the same as the expiration date of the permitted vehicle's registration.

473.4051 LIGHT RAIL TRANSIT CONSTRUCTION AND OPERATION.

Subd. 2.

Operating costs.

After operating revenue and federal money have been used to pay for light rail transit operations, 50 percent of the remaining operating costs must be paid by the state.

Repealed Minnesota Session Laws: 17-2522

Laws 2012, chapter 287, article 1, section 1, subdivision 6

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

new text begin $ new text end

new text begin 17,530,000 new text end

new text begin Subd. 6. new text end new text begin Overweight Motor Vehicle Registration Collection new text end

new text begin 30,000 new text end

new text begin To modify Department of Transportation permit system to allow the department to collect additional registration taxes for overweight motor vehicles. new text end

new text begin This appropriation is only available if legislation is enacted in the 2012 legislative session authorizing the commissioner to collect a surcharge or additional registration tax on motor vehicles. new text end