SF 1207

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to motor carriers; amending requirements for movers of household
goods, including changes from use of permits to registration; removing language
governing obsolete permits; making conforming and clarifying changes;
amending Minnesota Statutes 2006, sections 168.013, subdivision 1e; 169.781,
subdivision 10; 174.64, subdivisions 2, 4; 174.66; 221.011, subdivision 8, by
adding a subdivision; 221.025; 221.0252, subdivision 6; 221.026; 221.031,
subdivision 1; 221.036, subdivisions 1, 3; 221.131; 221.132; 221.141,
subdivision 4; 221.172, subdivision 3; 221.185; 221.221, subdivision 3; 221.291,
subdivision 4; proposing coding for new law in Minnesota Statutes, chapter
221; repealing Minnesota Statutes 2006, sections 174.65; 221.011, subdivisions
24, 25, 28, 29, 38, 41, 44, 45; 221.0252, subdivisions 3, 7; 221.072; 221.111;
221.121, subdivisions 1, 2, 3, 4, 5, 6, 6a, 6c, 6d, 6e, 6f, 7; 221.122; 221.123;
221.131, subdivisions 2a, 3, 4; 221.141, subdivision 6; 221.151; 221.152;
221.153, subdivisions 1, 2; 221.161; 221.171; 221.172, subdivisions 4, 5, 6, 7, 8;
221.296, subdivisions 3, 4, 5, 6, 7, 8.

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

ARTICLE 1

HOUSEHOLD GOODS MOVERS

Section 1.

Minnesota Statutes 2006, section 221.011, is amended by adding a
subdivision to read:

new text begin Subd. 50. new text end

new text begin Household goods mover. new text end

new text begin "Household goods mover" means a motor
carrier who (1) engages in any arrangement directly or indirectly by lease, rental, referral,
or by other means to provide or to obtain drivers, vehicles, or other for-hire transportation
service for moving household goods, or (2) provides household goods packing services.
new text end

Sec. 2.

new text begin [221.0253] HOUSEHOLD GOODS MOVERS; REGISTRATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "registrant" means a person
applying for a certificate of registration as a household goods mover under this section.
new text end

new text begin Subd. 2. new text end

new text begin Registration required. new text end

new text begin No person may engage in the for-hire
transportation of household goods in Minnesota unless the person has been issued a
certificate of registration by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Registration statement. new text end

new text begin A registrant shall file a complete and accurate
registration statement with the commissioner. A registration statement must be on a form
provided by the commissioner and include:
new text end

new text begin (1) the registrant's name, including an assumed or fictitious name used by the
registrant in doing business;
new text end

new text begin (2) the registrant's mailing address and business telephone number;
new text end

new text begin (3) the registrant's federal employer identification number, Minnesota business
identification number, and the identification number, if any, assigned to the registrant by
the United States Department of Transportation;
new text end

new text begin (4) the name, title, and telephone number of the individual who is principally
responsible for the operation of the registrant's transportation business;
new text end

new text begin (5) the principal location from which the registrant conducts its transportation
business and where the records required by this chapter will be kept;
new text end

new text begin (6) if different from clause (5), the location in Minnesota where the records required
by this chapter will be available for inspection and copying by the commissioner;
new text end

new text begin (7) whether the registrant's business is a corporation, partnership, limited liability
partnership, limited liability company, sole proprietorship, or other legal form;
new text end

new text begin (8) if the registrant is a foreign corporation authorized to transact business in
Minnesota, the state of incorporation and the name and address of its registered agent; and
new text end

new text begin (9) a record of each initial background check as required under subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Vehicle and insurance statement. new text end

new text begin (a) A registrant shall file a complete
and accurate vehicle and insurance statement with the commissioner. A vehicle and
insurance statement must be on a form provided by the commissioner and include:
new text end

new text begin (1) the make, model, year, vehicle number, and license plate number of the vehicles
to be used in the for-hire transportation of household goods; and
new text end

new text begin (2) the registrant's insurance company and policy numbers for insurance or bonds as
required under section 221.141.
new text end

new text begin (b) The commissioner may extend the time for compliance with paragraph (a) up to
45 days after the commissioner issues the certificate of registration. If the registrant fails
to meet the requirements of paragraph (a) within the time granted by the commissioner,
the commissioner shall invalidate the certificate of registration.
new text end

new text begin Subd. 5. new text end

new text begin Background check; denial of registration. new text end

new text begin (a) The registrant shall
conduct, or cause to be conducted, an initial background check of any person employed by
the registrant, or with whom the registrant contracts, whose duties include operating a
vehicle used to transport household goods.
new text end

new text begin (b) Sections 299C.67; 299C.68, subdivisions 2 to 5; and 299C.71 apply to
background checks conducted under this subdivision. For purposes of this subdivision,
when used in sections 299C.67, 299C.68, and 299C.71, the term "owner" refers to the
registrant and the term "manager" refers to a driver.
new text end

new text begin (c) The commissioner may deny registration to any registrant who employs a driver
that the background check response shows has been convicted of a background check
crime, as defined in section 299C.67, subdivision 2, paragraph (a) or (b).
new text end

new text begin (d) The registrant shall conduct, or cause to be conducted, a subsequent background
check every three years. The registrant shall keep a record, identified by the employee's
name, of a background check conducted under this section. A record must be made
available to the commissioner upon request.
new text end

new text begin (e) This subdivision does not apply to a driver who holds a valid driver's license
with a school bus endorsement.
new text end

new text begin Subd. 6. new text end

new text begin Signature required. new text end

new text begin A corporate officer, general partner, or sole proprietor
must sign the registration statement and the vehicle and insurance statement.
new text end

new text begin Subd. 7. new text end

new text begin Fee. new text end

new text begin An initial fee of $200 must be paid at the time of filing the registration
statement. It must be paid into the state treasury and credited to the trunk highway fund.
new text end

new text begin Subd. 8. new text end

new text begin Certificate of registration; issuance. new text end

new text begin (a) The commissioner shall issue a
certificate of registration to a registrant who has a satisfactory safety rating and has met
the requirements of this section.
new text end

new text begin (b) A certificate of registration must be numbered and bear an effective date.
new text end

new text begin (c) A certificate of registration must be kept at the registrant's principal place of
business.
new text end

new text begin Subd. 9. new text end

new text begin Duration. new text end

new text begin A certificate of registration is valid for for-hire transportation
of household goods throughout Minnesota, is not assignable or transferable, and is valid
until it is suspended, revoked, or canceled.
new text end

new text begin Subd. 10. new text end

new text begin Obligation to keep information current. new text end

new text begin A registrant shall notify the
commissioner in writing of any change in the information described in subdivisions
3 and 4.
new text end

new text begin Subd. 11. new text end

new text begin Suspension and cancellation of registration. new text end

new text begin The commissioner
shall suspend or cancel, following the procedures for suspension or cancellation in
section 221.185, the registration of a household goods mover who fails to file with the
commissioner or maintain the insurance or bond required under section 221.141. A person
may not engage in the for-hire transportation of household goods in Minnesota while the
person's registration is under suspension or cancellation under this subdivision.
new text end

Sec. 3.

new text begin [221.0265] AUDIT AND INSPECTION FOR HOUSEHOLD GOODS
MOVERS AND MOTOR CARRIERS OF PASSENGERS.
new text end

new text begin (a) Within 90 days of issuing a new certificate of registration under section 221.0252
or 221.0253, and before issuing an annual renewal of a certificate of registration, the
commissioner shall:
new text end

new text begin (1) conduct an audit of the motor carrier's records;
new text end

new text begin (2) inspect the vehicles the motor carrier uses in its operation to determine if they
comply with the federal regulations incorporated in section 221.0314 or accept for filing
proof that a complete vehicle inspection was conducted within the previous one year by a
commercial vehicle inspector of the Department of Public Safety or an inspector certified
by the commissioner of public safety under section 169.781;
new text end

new text begin (3) verify that the motor carrier has a designated office in Minnesota where the
books and files necessary to conduct business and the records required by this chapter are
kept and made available for inspection by the commissioner;
new text end

new text begin (4) audit the motor carrier's drivers' criminal background and safety records; and
new text end

new text begin (5) verify compliance with the insurance requirements of section 221.141.
new text end

new text begin (b) To streamline the audit process and to reduce the regulatory burden on motor
carriers, the commissioner may reduce the number of vehicle inspections and records
audited under paragraph (a) if the commissioner has sufficient information from federal
and state motor carrier safety data about a carrier's operations to determine a carrier's
safety fitness as described in Code of Federal Regulations, title 49, section 385.7. For
motor carriers of passengers, at a minimum, the commissioner must conduct the record
audit in paragraph (a) once every four years.
new text end

new text begin (c) Through an interagency agreement, the commissioner and the commissioner of
public safety shall coordinate vehicle inspection activities to avoid duplication of annual
vehicle inspections, to minimize the burden of compliance on carriers, and to maximize
the efficient use of state resources.
new text end

Sec. 4.

new text begin [221.027] HOUSEHOLD GOODS MOVERS; CONSUMER
PROTECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Price estimates and relinquishment of possession to consumers.
new text end

new text begin Code of Federal Regulations, title 49, sections 375.401 through 375.409 are incorporated
by reference and apply to household goods movers.
new text end

new text begin Subd. 2. new text end

new text begin Investigation. new text end

new text begin The attorney general shall investigate violations of laws
by household goods movers, including but not limited to violations relating to operation
without registration, misrepresentations, deceptive trade practices, theft, the provisions of
subdivision 1, and other crimes.
new text end

Sec. 5.

new text begin [221.028] HOUSEHOLD GOODS MOVERS; EXPIRATION AND
CONVERSION OF PERMITS.
new text end

new text begin Subdivision 1. new text end

new text begin Expiration of permits. new text end

new text begin Any permit issued by the commissioner
before August 1, 2007, that authorizes for-hire transportation of household goods in
Minnesota, is only valid through February 29, 2008.
new text end

new text begin Subd. 2. new text end

new text begin Conversion to registration. new text end

new text begin A holder of a permit issued by the
commissioner before August 1, 2007, that authorizes for-hire transportation of household
goods in Minnesota, who wishes to continue as a household goods mover, shall meet the
requirements of section 221.0253, before March 1, 2008. The commissioner shall not
perform a criminal background check under section 221.0253, subdivision 5, and shall not
charge a registration fee under section 221.0253, subdivision 7.
new text end

ARTICLE 2

REPEAL OF OBSOLETE PERMITS AND CONFORMING CHANGES

Section 1.

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

Subd. 1e.

Truck; tractor; combination; exceptions.

(a) On trucks and tractors
except those in this chapter defined as farm trucks, on truck-tractor and semitrailer
combinations except those defined as farm combinations, and on commercial zone
vehicles, the tax based on total gross weight shall be graduated according to the Minnesota
base rate schedule prescribed in this subdivision, but in no event less than $120.

Minnesota Base Rate Schedule

Scheduled taxes include five percent

surtax provided for in subdivision 14

	TOTAL GROSS WEIGHT
	IN POUNDS					TAX
	A	0	-	1,500		$ . 15
	B	1,501	-	3,000		20
	C	3,001	-	4,500		25
	D	4,501	-	6,000		35
	E	6,001	-	9,000		45
	F	9,001	-	12,000		70
	G	12,001	-	15,000		105
	H	15,001	-	18,000		145
	I	18,001	-	21,000		190
	J	21,001	-	26,000		270
	K	26,001	-	33,000		360
	L	33,001	-	39,000		475
	M	39,001	-	45,000		595
	N	45,001	-	51,000		715
	O	51,001	-	57,000		865
	P	57,001	-	63,000		1015
	Q	63,001	-	69,000		1185
	R	69,001	-	73,280		1325
	S	73,281	-	78,000		1595
	T	78,001	-	81,000		1760

(b) For purposes of the Minnesota base rate schedule, for vehicles with six or more
axles in the "S" and "T" categories, the base rates are $1,520 and $1,620 respectively.

(c) For each vehicle with a gross weight in excess of 81,000 pounds an additional
tax of $50 is imposed for each ton or fraction thereof in excess of 81,000 pounds, subject
to subdivision 12.

(d) Truck-tractors except those herein defined as farm and commercial zone vehicles
shall be taxed in accord with the foregoing gross weight tax schedule on the basis of the
combined gross weight of the truck-tractor and any semitrailer or semitrailers which the
applicant proposes to combine with the truck-tractor.

(e) Commercial zone trucks include only trucks, truck-tractors, and semitrailer
combinations which are deleted text begin :
deleted text end

deleted text begin (1) used by an authorized local cartage carrier operating under a permit issued
under section 221.296 and whose gross transportation revenue consists of at least 60
percent obtained solely from local cartage carriage, and are operated solely within an area
composed of two contiguous cities of the first class and municipalities contiguous thereto
as defined by section 221.011, subdivision 17; or
deleted text end

deleted text begin (2) deleted text end operated by an interstate carrier registered under section 221.60, or by an
authorized deleted text begin local cartage carrier or other deleted text end carrier receiving operating authority under chapter
221, and operated solely within a zone exempt from regulation pursuant to United States
Code, title 49, section 13506.

(f) The license plates issued for commercial zone vehicles shall be plainly marked. A
person operating a commercial zone vehicle outside the zone or area in which its operation
is authorized is guilty of a misdemeanor and, in addition to the new text begin misdemeanor new text end penalty
deleted text begin therefor deleted text end , new text begin the registrar new text end shall deleted text begin have deleted text end new text begin revoke new text end the registration of the vehicle as a commercial
zone vehicle deleted text begin revoked by the registrar deleted text end and deleted text begin shall be required to reregister deleted text end new text begin require that new text end the
vehicle new text begin be reregistered new text end at 100 percent of the full annual tax prescribed in the Minnesota
base rate schedule, and no part of this tax deleted text begin shall deleted text end new text begin may new text end be refunded during the balance of
the registration year.

(g) On commercial zone trucks the tax shall be based on the total gross weight of the
vehicle and during each of the first eight years of vehicle life deleted text begin shall be deleted text end new text begin is new text end 75 percent of the
Minnesota base rate schedule. During the ninth and succeeding years of vehicle life new text begin , new text end the
tax deleted text begin shall be deleted text end new text begin is new text end 50 percent of the Minnesota base rate schedule.

(h) On trucks, truck-tractors new text begin , new text end and semitrailer combinations, except those defined
as farm trucks and farm combinations, and except for those commercial zone vehicles
specifically provided for in this subdivision, the tax for each of the first eight years of
vehicle life deleted text begin shall be deleted text end new text begin is new text end 100 percent of the tax imposed in the Minnesota base rate schedule,
and during the ninth and succeeding years of vehicle life, the tax deleted text begin shall be deleted text end new text begin is new text end 75 percent
of the Minnesota base rate prescribed by this subdivision.

(i) For the purpose of registration, trailers coupled with a truck-tractor, semitrailer
combination are semitrailers.

Sec. 2.

Minnesota Statutes 2006, section 169.781, subdivision 10, is amended to read:

Subd. 10.

Exemption.

This section does not apply to a vehicle operated by a motor
carrier of passengers, as defined in section 221.011, subdivision 48, if the vehicle has been
inspected under section deleted text begin 221.0252, subdivision 3, deleted text end new text begin 221.0265, new text end paragraph (a), clause (2),
within the previous 12 months.

Sec. 3.

Minnesota Statutes 2006, section 174.64, subdivision 2, is amended to read:

Subd. 2.

Specific functions and powers.

(a) To the extent allowed under federal
law or regulation, the commissioner shall further hold hearings and issue orders in cases
brought on the commissioner's own motion or by a third party in the following areas:

(1) adequacy of services that carriers are providing to the public, including the
continuation, termination, or modification of services and facilities;

(2) reasonableness of tariffs of rates, fares, and charges, or a part or classification
of a tariff; and

(3) issuing permits.

(b) For purposes of paragraph (a), clause (2), the commissioner may authorize
common carriers by rail deleted text begin and motor carriers for hire deleted text end to file tariffs of rates, fares, and
charges individually or by group. Carriers participating in group ratemaking have the free
and unrestrained right to take independent action either before or after a determination
arrived at through that procedure.

Sec. 4.

Minnesota Statutes 2006, section 174.64, subdivision 4, is amended to read:

Subd. 4.

Petition, notice, and hearing.

(a) With respect to those matters within
the commissioner's jurisdiction, the commissioner shall receive, hear, and determine all
petitions filed with the commissioner in accordance with the procedures established by law
and may hold hearings and make determinations upon the commissioner's own motion to
the same extent, and in every instance, in which the commissioner may do so upon petition.

(b) deleted text begin Upon receiving a petition filed pursuant to section 221.121, subdivision 1, or
221.151, the commissioner shall give notice of the filing of the petition to representatives
of associations or other interested groups or persons who have registered their names
with the commissioner for that purpose and to whomever the commissioner deems to be
interested in the petition. The commissioner may grant or deny the request of the petition
30 days after notice of the filing has been fully given.
deleted text end

deleted text begin (c) deleted text end If the commissioner receives a written objection and notice of intent to appear at
a hearing to object to the petition from any person within 20 days of the notice having been
fully given, the request of the petition must be granted or denied only after a contested
case hearing has been conducted on the petition, unless the objection is withdrawn before
the hearing. The commissioner may elect to hold a contested case hearing if no objections
to the petition are received. If a timely objection is not received, or if received and
withdrawn, and the request of the petition is denied without hearing, the petitioner may
request within 30 days of receiving the notice of denial, and must be granted, a contested
case hearing on the petition.

Sec. 5.

Minnesota Statutes 2006, section 174.66, is amended to read:

174.66 CONTINUATION OF CARRIER RULES.

(a) Orders and directives in force, issued, or promulgated under authority of chapters
174A, 216A, 218, 219, 221, and 222 remain and continue in force and effect until repealed,
modified, or superseded by duly authorized orders or directives of the commissioner of
transportation. To the extent allowed under federal law or regulation, rules adopted under
authority of the following sections are transferred to the commissioner of transportation
and continue in force and effect until repealed, modified, or superseded by duly authorized
rules of the commissioner:

(1) section 218.041 except rules related to the form and manner of filing railroad
rates, railroad accounting rules, and safety rules;

(2) section 219.40; new text begin and
new text end

(3) rules relating to rates or tariffs, or the granting, limiting, or modifying of permits
or certificates of convenience and necessity under section 221.031, subdivision 1 deleted text begin ; deleted text end new text begin . new text end

deleted text begin (4) rules relating to the sale, assignment, pledge, or other transfer of a stock interest
in a corporation holding authority to operate as a permit carrier as prescribed in section
221.151, subdivision 1;
deleted text end

deleted text begin (5) rules relating to rates, charges, and practices under section 221.161, subdivision
4; and
deleted text end

deleted text begin (6) rules relating to rates, tariffs, or the granting, limiting, or modifying of permits
under sections 221.121 and 221.151. deleted text end

(b) The commissioner shall review the transferred rules, orders, and directives and,
when appropriate, develop and adopt new rules, orders, or directives.

Sec. 6.

Minnesota Statutes 2006, section 221.011, subdivision 8, is amended to read:

Subd. 8.

Permit.

"Permit" means the license, or franchise, which may be issued to
motor carriers other than regular route common carriers of passengers deleted text begin , class I common
carriers, and petroleum carriers, deleted text end new text begin and household goods movers new text end under the provisions of this
chapter, authorizing the use of the highways of Minnesota for transportation for hire.

Sec. 7.

Minnesota Statutes 2006, section 221.025, is amended to read:

221.025 EXEMPTIONS.

The provisions of this chapter requiring a certificate deleted text begin or permit deleted text end to operate as a motor
carrier do not apply to the intrastate transportation described below:

(1) the transportation of students to or from school or school activities in a school
bus inspected and certified under section 169.451 and the transportation of children or
parents to or from a Head Start facility or Head Start activity in a Head Start bus inspected
and certified under section 169.451;

(2) the transportation of solid waste, as defined in section 116.06, subdivision 22,
including recyclable materials and waste tires, except that the term "hazardous waste" has
the meaning given it in section 221.011, subdivision 31;

(3) a commuter van as defined in section 221.011, subdivision 27;

(4) authorized emergency vehicles as defined in section 169.01, subdivision 5,
including ambulances; and tow trucks equipped with proper and legal warning devices
when picking up and transporting (i) disabled or wrecked motor vehicles or (ii) vehicles
towed or transported under a towing order issued by a public employee authorized to
issue a towing order;

(5) the transportation of grain samples under conditions prescribed by the
commissioner;

(6) the delivery of agricultural lime;

(7) the transportation of dirt and sod within an area having a 50-mile radius from the
home post office of the person performing the transportation;

(8) the transportation of sand, gravel, bituminous asphalt mix, concrete ready mix,
concrete blocks or tile and the mortar mix to be used with the concrete blocks or tile, or
crushed rock to or from the point of loading or a place of gathering within an area having a
50-mile radius from that person's home post office or a 50-mile radius from the site of
construction or maintenance of public roads and streets;

(9) the transportation of pulpwood, cordwood, mining timber, poles, posts, decorator
evergreens, wood chips, sawdust, shavings, and bark from the place where the products
are produced to the point where they are to be used or shipped;

(10) the transportation of fresh vegetables from farms to canneries or viner stations,
from viner stations to canneries, or from canneries to canneries during the harvesting,
canning, or packing season, or transporting sugar beets, wild rice, or rutabagas from the
field of production to the first place of delivery or unloading, including a processing
plant, warehouse, or railroad siding;

(11) the transportation of property or freight, other than household goods and
petroleum products in bulk, entirely within the corporate limits of a city or between
contiguous cities deleted text begin except as provided in section 221.296 deleted text end ;

(12) the transportation of unprocessed dairy products in bulk within an area having a
100-mile radius from the home post office of the person providing the transportation;

(13) the transportation of agricultural, horticultural, dairy, livestock, or other farm
products within an area having a 100-mile radius from the person's home post office and
the carrier may transport other commodities within the 100-mile radius if the destination
of each haul is a farm;

(14) the transportation of newspapers, as defined in section 331A.01, subdivision
5, telephone books, handbills, circulars, or pamphlets in a vehicle with a gross vehicle
weight of 10,000 pounds or less; and

(15) transportation of potatoes from the field of production, or a storage site owned
or otherwise controlled by the producer, to the first place of processing.

The exemptions provided in this section apply to a person only while the person is
exclusively engaged in exempt transportation.

Sec. 8.

Minnesota Statutes 2006, section 221.0252, subdivision 6, is amended to read:

Subd. 6.

Annual renewal.

A carrier registered under this section must renew its
registration each year new text begin , new text end on a form prescribed by the commissioner new text begin , and subject to section
221.131 new text end . The commissioner shall develop and implement an expedited renewal process
to minimize the burden on motor carriers.

Sec. 9.

Minnesota Statutes 2006, section 221.026, is amended to read:

221.026 MOTOR CARRIER OF PROPERTY; EXEMPTIONS.

Subdivision 1.

Registration.

No person may engage in the for-hire transportation
of property deleted text begin , other than household goods, deleted text end in Minnesota unless the person has filed deleted text begin a deleted text end new text begin an
appropriate new text end registration statement with the commissioner on a form the commissioner
prescribes.

Subd. 2.

Exemptions from requirements.

Notwithstanding any other law, a motor
carrier of property is exempt from sections 221.021; 221.072; deleted text begin 221.121; 221.122; 221.123; deleted text end
221.131; 221.132; deleted text begin 221.151; 221.161; deleted text end 221.172, subdivisions 3 to 8; new text begin and new text end 221.185, except as
provided in subdivision 4 deleted text begin ; and 221.296 deleted text end . The exemptions in this subdivision do not apply
to a motor carrier of property while transporting household goods.

Subd. 3.

Safety regulations.

A motor carrier of property is subject to those federal
regulations incorporated by reference in section 221.0314, unless exempted from those
regulations by section 221.031.

Subd. 4.

Suspension and cancellation of registration.

The commissioner
shall suspend or cancel, following the procedures for suspension or cancellation in
section 221.185, the registration of a motor carrier of property who fails to file with the
commissioner or maintain the insurance or bond required under section 221.141. A person
may not engage in the for-hire transportation of property deleted text begin , other than household goods, deleted text end
in Minnesota while the person's registration is under suspension or cancellation under
this subdivision.

Subd. 5.

Local regulation.

Section 221.091 applies to registration statements under
this section to the same extent that it applies to certificates and permits issued by the board.

Sec. 10.

Minnesota Statutes 2006, section 221.031, subdivision 1, is amended to read:

Subdivision 1.

Powers, duties, reports, limitations.

(a) This subdivision applies to
motor carriers engaged in intrastate commerce.

(b) The commissioner shall prescribe rules for the operation of motor carriers,
including their facilities; accounts; leasing of vehicles and drivers; service; safe operation
of vehicles; equipment, parts, and accessories; hours of service of drivers; driver
qualifications; accident reporting; identification of vehicles; installation of safety devices;
inspection, repair, and maintenance; and proper automatic speed regulators if, in the
opinion of the commissioner, there is a need for the rules.

(c) The commissioner shall direct the repair and reconstruction or replacement of
an inadequate or unsafe motor carrier vehicle or facility. The commissioner may require
the construction and maintenance or furnishing of suitable and proper freight terminals,
passenger depots, waiting rooms, and accommodations or shelters in a city in this state or
at a point on the highway traversed which the commissioner, after investigation by the
department, may deem just and proper for the protection of passengers or property.

(d) The commissioner shall require deleted text begin holders of deleted text end household goods deleted text begin mover permits deleted text end new text begin
movers registered under section 221.0253 new text end to file annual and other reports including
annual accounts of motor carriers deleted text begin , schedules of rates and charges, deleted text end or other data by motor
carriers, regulate motor carriers in matters affecting the relationship between them and
the traveling and shipping public, and prescribe other rules as may be necessary to carry
out the provisions of this chapter.

(e) A deleted text begin motor carrier subject to paragraph (d) but deleted text end new text begin household goods mover new text end having gross
revenues from for-hire transportation in a calendar year of less than $200,000 may, at the
discretion of the commissioner, be exempted from the filing of an annual report, if instead
the deleted text begin motor carrier deleted text end new text begin household goods mover new text end files an abbreviated annual report, in a form as
may be prescribed by the commissioner, attesting that deleted text begin the motor carrier's deleted text end gross revenues
did not exceed $200,000 in the previous calendar year. deleted text begin Motor carrier deleted text end new text begin Household goods
mover new text end gross revenues from for-hire transportation, for the purposes of this subdivision
only, do not include gross revenues received from the operation of school buses as defined
in section 169.01, subdivision 6.

(f) The commissioner shall enforce sections 169.781 to 169.783.

Sec. 11.

Minnesota Statutes 2006, section 221.036, subdivision 1, is amended to read:

Subdivision 1.

Order.

The commissioner may issue an order requiring violations
to be corrected and administratively assessing monetary penalties for a violation of (1)
section 221.021; (2) section 221.033, subdivision 2b; (3) deleted text begin section 221.151; (4) section
221.171; (5) deleted text end section 221.141; or deleted text begin (6) deleted text end new text begin (4) new text end rules of the commissioner relating to the
transportation of hazardous waste, motor carrier operations, insurance, or tariffs and
accounting. An order must be issued as provided in this section.

Sec. 12.

Minnesota Statutes 2006, section 221.036, subdivision 3, is amended to read:

Subd. 3.

Amount of penalty; considerations.

(a) The commissioner may issue an
order assessing a penalty of up to $5,000 for all violations deleted text begin of section 221.021; 221.141;
221.151; or 221.171, or rules of the commissioner relating to motor carrier operations,
insurance, or tariffs and accounting, deleted text end new text begin identified under subdivision 1, except for rules of the
commissioner relating to the transportation of hazardous waste or as otherwise provided
under paragraph (b), new text end identified during a single inspection, audit, or investigation.

(b) The commissioner may issue an order assessing a penalty up to a maximum of
$10,000 for all violations of section 221.033, subdivision 2b, identified during a single
inspection or audit.

(c) In determining the amount of a penalty, the commissioner shall consider:

(1) the willfulness of the violation;

(2) the gravity of the violation, including damage to humans, animals, air, water,
land, or other natural resources of the state;

(3) the history of past violations, including the similarity of the most recent violation
and the violation to be penalized, the time elapsed since the last violation, the number of
previous violations, and the response of the person to the most recent violation identified;

(4) the economic benefit gained by the person by allowing or committing the
violation; and

(5) other factors as justice may require, if the commissioner specifically identifies
the additional factors in the commissioner's order.

(d) The commissioner shall assess a penalty of not less than $1,000 against a driver
who is convicted of a violation of an out-of-service order. The commissioner shall assess
a penalty of not more than $10,000 against an employer who knowingly allows or requires
an employee to operate a commercial motor vehicle in violation of an out-of-service order.

Sec. 13.

Minnesota Statutes 2006, section 221.131, is amended to read:

221.131 deleted text begin CARRIER deleted text end new text begin ANNUAL new text end VEHICLE REGISTRATION deleted text begin ; FEES,
IDENTIFICATION CARD deleted text end new text begin FOR HOUSEHOLD GOODS MOVERS AND MOTOR
CARRIERS OF PASSENGERS new text end .

Subdivision 1.

deleted text begin Permit deleted text end new text begin Registration new text end renewal.

deleted text begin Permits deleted text end new text begin Certificates of registration new text end
issued new text begin to a household goods mover new text end under section deleted text begin 221.121 deleted text end new text begin 221.0253 and to a motor carrier
of passengers under section 221.0252 new text end are effective for a 12-month period. A deleted text begin permit deleted text end new text begin
certificate of registration new text end holder must renew the deleted text begin permit deleted text end new text begin certificate new text end annually by registration
of the vehicles operated under authority of that deleted text begin permit as required by subdivision 2 deleted text end new text begin
certificate new text end . A deleted text begin permit deleted text end new text begin certificate new text end holder has one annual renewal date encompassing all of
the deleted text begin permits deleted text end new text begin certificates new text end held by the holder.

Subd. 2.

Annual vehicle registration; fee.

(a) deleted text begin This subdivision applies only to
holders of household goods mover permits and motor carriers of passengers.
deleted text end

deleted text begin (b) deleted text end A deleted text begin permit holder deleted text end new text begin household goods mover new text end or new text begin a new text end motor carrier of passengers shall
pay an annual registration fee of $75 on each vehicle, including pickup and delivery
vehicles, operated by the carrier under authority of the deleted text begin permit or deleted text end certificate of registration
during the 12-month period or fraction of the 12-month period. Trailers and semitrailers
used by a deleted text begin permit deleted text end new text begin certificate new text end holder in combination with power units may not be counted
as vehicles in the computation of fees under this section if the permit holder pays the
fees for power units.

deleted text begin (c) deleted text end new text begin (b) new text end The commissioner shall furnish a distinguishing annual identification card for
each vehicle or power unit for which a fee has been paid. The identification card must
at all times be carried in the vehicle or power unit to which it has been assigned. An
identification card may be reassigned to another vehicle or power unit upon application
of the carrier and payment of a transfer fee of $10. An identification card issued under
this section is valid only for the period for which the deleted text begin permit or deleted text end certificate of registration is
effective.

deleted text begin (d) deleted text end new text begin (c) new text end A fee of $10 is charged for the replacement of an unexpired identification
card that has been lost.

deleted text begin (e) deleted text end new text begin (d) new text end The proceeds of the fees collected under this subdivision must be deposited in
the trunk highway fund.

deleted text begin Subd. 2a. deleted text end

deleted text begin Vehicle identification. deleted text end

deleted text begin The permit holder must be identified on the
power unit of each registered vehicle operated under the permit. Vehicles must show the
name or the "doing business as" name of the permit holder operating the vehicle and
the community and abbreviation of the state in which the permit holder maintains its
principal office or in which the vehicle is customarily based. If the permit holder operates
a leased vehicle, it may show its name and the name of the lessor on the vehicle, if the
lease relationship is clearly shown. If the name of a person other than the operating permit
holder appears on the vehicle, the words "operated by" must immediately precede the
name of the permit holder. The name and address must be in letters that contrast sharply in
color with the background, be readily legible during daylight hours from a distance of 50
feet while the vehicle is stationary, and be maintained in a manner that retains the legibility
of the markings. The name and address may be shown by use of a removable device if that
device meets the identification and legibility requirements of this subdivision.
deleted text end

deleted text begin Subd. 3. deleted text end

deleted text begin Certificate carrier; annual vehicle registration. deleted text end

deleted text begin Certificated passenger
carriers shall pay an annual registration fee of $40 for each vehicle, including pickup
and delivery vehicles, operated during a calendar year. The commissioner shall issue
distinguishing identification cards as provided in subdivision 2.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Floater card; fee. deleted text end

deleted text begin The department may issue to carriers subject to
subdivision 2 or 3 special "floater" identification cards up to a maximum of five per motor
carrier. Floater cards may be freely transferred between vehicles that have evidence of
being inspected under section deleted text begin 221.0252, subdivision 3 deleted text end , paragraph (a), clause (2), within
the previous 12 months, or have a current Commercial Vehicle Safety Alliance decal, and
that are used under short-term leases by the motor carrier. The motor carrier shall pay a
fee of $100 for each floater card issued.
deleted text end

Subd. 5.

Limitation.

The provisions of this section are limited by applicable
federal law.

Sec. 14.

Minnesota Statutes 2006, section 221.132, is amended to read:

221.132 PREPAID TEMPORARY VEHICLE IDENTIFICATION CARD.

For special or extraordinary events, the commissioner may issue a prepaid
temporary vehicle identification card to a deleted text begin permit or deleted text end certificate holder subject to section
221.131, subdivision 2 deleted text begin or 3 deleted text end , for a fee of $5 per card. The card must be preprinted by
the commissioner with the carrier's name, address, and deleted text begin permit or deleted text end certificate number.
The card may be used by the motor carrier to whom it is issued to identify a vehicle
temporarily added to its fleet, if the vehicle has evidence of being inspected under section
deleted text begin 221.0252, subdivision 3, deleted text end new text begin 221.0265, new text end paragraph (a), clause (2), within the previous 12
months, or has a current Commercial Vehicle Safety Alliance decal. The card must be
executed by the motor carrier by dating and signing the card and describing the vehicle
in which it will be carried. The identification card is valid for a period of ten days from
the date the motor carrier places on the card when the card is executed. The card must
be used within one year from the date of issuance by the commissioner. The card may
not be used if the deleted text begin permit or deleted text end certificate is not in full force and effect. The card may not
be transferred. The commissioner may not refund the cost of unused prepaid temporary
vehicle identification cards.

Sec. 15.

Minnesota Statutes 2006, section 221.141, subdivision 4, is amended to read:

Subd. 4.

Household goods mover.

A household goods mover shall maintain
in effect cargo insurance or cargo bond in the amount of $50,000 and shall file with
the commissioner a cargo certificate of insurance or cargo bond. A cargo certificate of
insurance must conform to Form H, Uniform Motor Cargo Certificate of Insurance,
described in Code of Federal Regulations, title 49, part 1023. A cargo bond must conform
to Form J, described in Code of Federal Regulations, title 49, part 1023. Both Form H and
Form J are incorporated by reference. The cargo certificate of insurance or cargo bond
must be issued in the full and correct name of the person, corporation, or partnership to
whom the household goods mover deleted text begin permit deleted text end new text begin certificate of registration new text end was issued and whose
operations are being insured.

Sec. 16.

Minnesota Statutes 2006, section 221.172, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Class I, class II, or temperature-controlled commodities carrier; deleted text end
Household goods mover.

(a) A deleted text begin class I carrier, class II carrier, deleted text end household goods mover deleted text begin ,
and a holder of a temperature-controlled commodities permit deleted text end shall keep a record of
each shipment transported under a certificate deleted text begin or permit deleted text end . A record may consist of one or
more documents, including a bill of lading, freight bill, manifest, delivery receipt, or
other document. If it consists of more than one document, the documents constituting a
shipment record must be available for inspection together.

(b) A record must show the:

(1) names of the consignor and consignee;

(2) date of shipment;

(3) origin and destination points;

deleted text begin (4) number of packages, if applicable to the rating of the freight or if the carrier's
operating authority includes a package or article restriction, unless the shipment is
transported by a household goods mover;
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end description of the freight;

deleted text begin (6) deleted text end new text begin (5) new text end weight, volume, or measurement of the freight, if applicable to the rating of
the freight or if the carrier's operating authority includes a weight restriction;

deleted text begin (7) deleted text end new text begin (6) new text end exact rate or rates assessed;

deleted text begin (8) deleted text end new text begin (7) new text end total charges due, including the nature and amount of any charges for special
service; new text begin and
new text end

deleted text begin (9) deleted text end new text begin (8) new text end the name of each carrier participating in the transportation deleted text begin ; and
deleted text end

deleted text begin (10) after January 1, 1994, any terminals through which the shipment moved deleted text end .

Sec. 17.

Minnesota Statutes 2006, section 221.185, is amended to read:

221.185 OPERATING AUTHORITY; SUSPENSION, CANCELLATION.

Subdivision 1.

deleted text begin Grounds deleted text end new text begin Order new text end for suspension.

Despite the provisions of section
221.021, a deleted text begin household goods mover permit or a motor carrier deleted text end new text begin certificate of new text end registration
issued under deleted text begin section deleted text end new text begin sections new text end 221.0251 deleted text begin or deleted text end new text begin , new text end 221.0252 new text begin , or 221.0253 new text end is suspended without a
hearing, by order of the commissioner, if the deleted text begin permit deleted text end new text begin certificate new text end holder or carrier fails to new text begin :
new text end

new text begin (1) new text end maintain and file with the commissioner, the insurance or bond required by
section 221.141 and rules adopted under that section deleted text begin or the carrier or permit holder fails to deleted text end new text begin ;
new text end

new text begin (2) new text end pay annual vehicle registration fees deleted text begin or renew permits deleted text end as required by section
221.131 deleted text begin , or the permit holder or carrier fails to deleted text end new text begin ; or
new text end

new text begin (3) new text end pay an administrative penalty under section 221.036.

Subd. 2.

Notice of suspension.

(a) Failure to file and maintain insurance, deleted text begin renew
permits under section 221.131, deleted text end or to pay annual vehicle registration fees deleted text begin or renew
permits deleted text end under section 221.131 deleted text begin or 221.296, or to maintain in good standing a protective
agent's or private detective's license required under section 221.121, subdivision 6g, or
221.153, subdivision 3 deleted text end , suspends a motor carrier's deleted text begin permit or deleted text end certificate two days after the
commissioner sends notice of the suspension by certified mail, return receipt requested, to
the last known address of the motor carrier.

(b) In order to avoid permanent cancellation of the deleted text begin permit or deleted text end certificate, the motor
carrier must do one of the following within 45 days from the date of suspension:

(1) comply with the law by filing insurance or bond deleted text begin , renewing permits, deleted text end or paying
vehicle registration fees; or

(2) request a hearing before the commissioner regarding the failure to comply
with the law.

Subd. 2a.

Notice of suspension; effective date.

The commissioner shall issue a
notice of suspension if one of the conditions described in subdivision 1 occurs. The notice
must give the reason for suspension and must be sent to the last known address of the
carrier by certified mail, return receipt requested. A suspension is effective two days
after a notice is mailed.

Subd. 3.

Suspension rescission.

If the motor carrier complies with the requirements
of this chapter within 45 days after the date of suspension and pays the required fees,
including a late vehicle registration fee of $5 for each vehicle registered, the commissioner
shall rescind the suspension unless the carrier's registration has expired. If a registered
carrier fails to comply within one year of the effective date of a suspension, the carrier's
registration is canceled.

Subd. 3a.

Hearing.

If the motor carrier requests a hearing within 45 days after the
date of suspension, the commissioner shall review the suspension and:

(1) determine that the carrier has complied with the law and rescind the suspension;

(2) for just cause, grant an extension which must not exceed 20 days; or

(3) schedule a hearing to ascertain whether the carrier has failed to comply with the
law. If it is determined after the hearing that the carrier has failed to comply with the law,
the commissioner shall cancel the carrier's suspended deleted text begin permit or deleted text end certificate.

Subd. 4.

Grounds for cancellation.

Except as provided in subdivision 5a, failure to
comply with the requirements of deleted text begin sections deleted text end new text begin section new text end 221.141 deleted text begin and 221.296 deleted text end relating to bonds
and insurance, deleted text begin 221.131 relating to permit renewal, deleted text end 221.131 deleted text begin or 221.296 deleted text end relating to annual
vehicle registration or deleted text begin permit deleted text end renewal, deleted text begin 221.121, subdivision 6g, or 221.153, subdivision 3,
relating to protective agent or private detective licensure, deleted text end or to request a hearing within 45
days of the date of suspension, is deemed an abandonment of the motor carrier's deleted text begin permit or deleted text end
certificate and the deleted text begin permit or deleted text end certificate must be canceled by the commissioner.

Subd. 5.

Notice of cancellation.

The commissioner shall notify the motor carrier by
certified mail, return receipt requested, that the deleted text begin permit or deleted text end certificate is canceled effective
on the date of mailing the notice of cancellation.

Subd. 5a.

Reinstatement after cancellation.

A motor carrier whose permit or
certificate is canceled for failure to comply with deleted text begin sections deleted text end new text begin section new text end 221.141 deleted text begin and 221.296 deleted text end
relating to bonds and insurance may ask the commissioner to review the cancellation.
Upon review, the commissioner shall rescind the cancellation if (1) the motor carrier
presents evidence showing that before the effective date of the notice of cancellation
issued under subdivision 5, the motor carrier had obtained and paid for the insurance
required by deleted text begin sections deleted text end new text begin section new text end 221.141 deleted text begin and 221.296 deleted text end , and the rules of the commissioner, and
(2) the commissioner is satisfied that the motor carrier has complied with the requirements
of deleted text begin sections deleted text end new text begin section new text end 221.141 deleted text begin and 221.296 deleted text end and the rules of the commissioner.

Subd. 9.

New petition.

If the holder of a canceled deleted text begin permit or deleted text end certificate seeks
authority to operate as a motor carrier it shall file a petition with the commissioner deleted text begin for a
permit or certificate as provided in section 221.121 or 221.296, whichever is applicable deleted text end .

Sec. 18.

Minnesota Statutes 2006, section 221.221, subdivision 3, is amended to read:

Subd. 3.

Delegated powers.

Representatives of the department to whom authority
has been delegated by the commissioner for the purpose of enforcing sections 169.781 to
169.783 deleted text begin and 221.171 deleted text end and the rules, orders, or directives of the commissioner adopted or
issued under those sections, and for no other purpose, deleted text begin shall deleted text end have the powers conferred
by law upon police officers. The representatives of the department have the power to
inspect records, logs, freight bills, bills of lading, or other documents new text begin , new text end which may provide
evidence to determine compliance with sections 169.781 to 169.783 deleted text begin and 221.171 deleted text end .

Sec. 19.

Minnesota Statutes 2006, section 221.291, subdivision 4, is amended to read:

Subd. 4.

Operating without registration deleted text begin or permit deleted text end .

A person who operates a
motor carrier without first registering under deleted text begin section deleted text end new text begin sections new text end 221.0251 deleted text begin or deleted text end new text begin , new text end 221.0252, or
deleted text begin who operates as a household goods mover without having obtained the necessary permit deleted text end new text begin
221.0253 new text end , is guilty of a misdemeanor, and upon conviction deleted text begin shall deleted text end new text begin must new text end be fined not less
than the maximum fine deleted text begin which deleted text end new text begin that new text end may be imposed for a misdemeanor for each violation.

Sec. 20. new text begin REVISION OF RULES.
new text end

new text begin The commissioner of transportation shall amend and adopt revisions to those rules
pertinent to the repeal of Minnesota Statutes under section 21, under the good cause
exemption as provided in Minnesota Statutes, section 14.388, subdivision 1, clause (3).
new text end

Sec. 21. new text begin INSTRUCTION TO REVISOR.
new text end

new text begin The revisor of statutes shall change the phrase "sections 221.011 to 221.296" to
read "this chapter" where found in Minnesota Statutes, sections 221.021, subdivision
1; 221.022; and 221.091, subdivision 1.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 174.65; 221.011, subdivisions 24, 25, 28, 29, 38,
41, 44, and 45; 221.0252, subdivisions 3 and 7; 221.072; 221.111; 221.121, subdivisions
1, 2, 3, 4, 5, 6, 6a, 6c, 6d, 6e, 6f, and 7; 221.122; 221.123; 221.131, subdivisions 2a, 3,
and 4; 221.141, subdivision 6; 221.151; 221.152; 221.153, subdivisions 1 and 2; 221.161;
221.171; 221.172, subdivisions 4, 5, 6, 7, and 8; and 221.296, subdivisions 3, 4, 5, 6, 7,
and 8, new text end new text begin are repealed.
new text end