SF 1985

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

A bill for an act
relating to transportation appropriations; appropriating money for transportation,
Metropolitan Council, and public safety activities and programs; authorizing sale
of trunk highway bonds; authorizing sale of Metropolitan Council obligations
for transit; providing for fund transfers, contingent appropriations, and tort
claims; providing for various fees and accounts; modifying or adding provisions
relating to an airport funding advisory task force, various transit activities
and programs, sales tax exemptions, motor vehicle lease tax and sales tax
distributions, a transportation endowment fund, distribution of discretionary
highway user tax proceeds, tax proceeds exceeding budgetary general fund
balance, highway construction training, the disadvantaged business enterprise
program, special transportation, major highway project reports, the Metropolitan
Transit Police, and the transit taxing district; requiring commuter rail station
in Fridley; removing 1999 restriction on construction of certain light rail
transit facilities, and a 2001 restriction on the transit tax levy authority of the
Metropolitan Council; making technical and clarifying changes; amending
Minnesota Statutes 2006, sections 16A.1522, subdivision 1; 16A.88; 53C.01,
subdivision 2; 161.081; 168.017, subdivision 3; 168.12, subdivision 5; 168.1255,
by adding a subdivision; 168A.29, subdivision 1; 171.02, subdivision 3; 171.06,
subdivision 2; 171.07, subdivisions 3a, 11; 171.20, subdivision 4; 174.03, by
adding subdivisions; 297A.70, subdivision 2; 297A.71, by adding a subdivision;
297A.815, subdivision 1, by adding subdivisions; 297A.94; 297B.01, subdivision
8; 297B.09, subdivision 1; 299D.09; 473.1466; 473.166; 473.386, subdivisions
1, 2, 2a, 3; 473.388, subdivision 4; 473.39, by adding a subdivision; 473.399;
473.3993, subdivision 3; 473.3994; 473.3997; 473.4051; 473.407, subdivision
1; 473.446, subdivisions 2, 8; 609.531, subdivision 1; proposing coding for
new law in Minnesota Statutes, chapters 160; 174; 473; repealing Minnesota
Statutes 2006, sections 174.32; 473.123, subdivision 3d; 473.1465; 473.4461;
Laws 1999, chapter 230, section 44.

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

ARTICLE 1

TRANSPORTATION APPROPRIATIONS

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

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

		new text begin 2008 new text end		new text begin 2009 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 129,748,000 new text end	new text begin $ new text end	new text begin 104,498,000 new text end	new text begin $ new text end	new text begin 234,246,000 new text end
new text begin Airports new text end		new text begin 25,474,000 new text end		new text begin 25,542,000 new text end		new text begin 51,016,000 new text end
new text begin C.S.A.H. new text end		new text begin 430,045,000 new text end		new text begin 447,941,000 new text end		new text begin 877,986,000 new text end
new text begin M.S.A.S. new text end		new text begin 116,093,000 new text end		new text begin 120,911,000 new text end		new text begin 237,004,000 new text end
new text begin Special Revenue new text end		new text begin 46,660,000 new text end		new text begin 47,704,000 new text end		new text begin 94,364,000 new text end
new text begin Highway User new text end		new text begin 8,813,000 new text end		new text begin 9,113,000 new text end		new text begin 17,926,000 new text end
new text begin Trunk Highway new text end		new text begin 1,137,547,000 new text end		new text begin 1,158,218,000 new text end		new text begin 2,295,765,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 1,894,380,000 new text end	new text begin $ new text end	new text begin 1,913,927,000 new text end	new text begin $ new text end	new text begin 3,808,307,000 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
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2008" and "2009" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2008, or
June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
year ending June 30, 2007, are effective the day following final enactment.
new text end

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

Sec. 3. new text begin TRANSPORTATION new text end

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

new text begin $ new text end

new text begin 1,672,974,000 new text end

new text begin $ new text end

new text begin 1,686,686,000 new text end

new text begin The appropriations in this section are from
the trunk highway fund, except when another
fund is named.
new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 44,730,000 new text end	new text begin 19,239,000 new text end
new text begin Airports new text end	new text begin 25,474,000 new text end	new text begin 25,542,000 new text end
new text begin C.S.A.H. new text end	new text begin 430,045,000 new text end	new text begin 447,941,000 new text end
new text begin M.S.A.S. new text end	new text begin 116,093,000 new text end	new text begin 120,911,000 new text end
new text begin Trunk Highway new text end	new text begin 1,056,632,000 new text end	new text begin 1,073,053,000 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) new text end new text begin Airport Development and Assistance new text end

new text begin 20,298,000 new text end

new text begin 20,298,000 new text end

new text begin 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 Of this appropriation $200,000 the first
year is to the Legislative Coordinating
Commission for the administrative expenses
of the Airport Funding Advisory Task Force
and for other costs relating to the preparation
of the task force report, including the costs of
hiring a consultant, if needed. Any remaining
amount of this appropriation shall revert to
the state airports fund.
new text end

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

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

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

new text begin (b) Transit new text end

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

new text begin The commissioner of transportation may
spend up to $5,000,000 from July 1, 2008,
through June 30, 2013, in federal transit
funds for capital assistance to public transit
systems under Minnesota Statutes, section
. This amount is in addition to any
appropriations made by law for this purpose.
new text end

new text begin (c) Freight new text end

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

new text begin (d) new text begin Ports new text end new text end

new text begin $5,500,000 is for the port development
assistance program under Minnesota
Statutes, chapter 457A. Of this appropriation,
$500,000 is for the purchase of dredging
equipment. This appropriation is onetime
and is available until spent.
new text end

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

new text begin (a) Infrastructure Investment and Planning new text end

new text begin (1) new text end new text begin Infrastructure Investment Support new text end

new text begin 170,445,000 new text end

new text begin 173,248,000 new text end

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

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

new text begin $600,000 the first year and $600,000
the second year are 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 and (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's district office for that region.
new text end

new text begin (2) new text end new text begin State Road Construction new text end

new text begin 552,770,000 new text end

new text begin 555,923,000 new text end

new text begin It is estimated that these appropriations will
be funded as follows:
new text end

new text begin Appropriations by Fund new text end
new text begin Federal Highway Aid new text end	new text begin 193,463,000 new text end	new text begin 350,442,000 new text end
new text begin Highway User Taxes new text end	new text begin 359,307,000 new text end	new text begin 205,481,000 new text end

new text begin The commissioner of transportation shall
notify the chair of the Transportation Budget
Division of the senate and the chair of the
Transportation Finance Committee of the
house of representatives of any significant
events that should cause these estimates to
change.
new text end

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

new text begin 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 (3) new text end new text begin Highway Debt Service new text end

new text begin 56,699,000 new text end

new text begin 63,706,000 new text end

new text begin $53,039,000 the first year and $53,354,000
the second year are for transfer to the state
bond fund. If this appropriation is insufficient
to make all transfers required in the year for
which it is made, the commissioner of finance
shall notify the Committee on Finance of
the senate and the Committee on Ways and
Means of the house of representatives of
the amount of the deficiency and shall then
transfer that amount under the statutory open
appropriation. Any excess appropriation
cancels to the trunk highway fund.
new text end

new text begin (b) Infrastructure Operations and Maintenance new text end

new text begin 208,297,000 new text end

new text begin 210,987,000 new text end

new text begin (c) Electronic Communications new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 9,000 new text end	new text begin 9,000 new text end
new text begin Trunk Highway new text end	new text begin 6,018,000 new text end	new text begin 6,103,000 new text end

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

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

new text begin (a) County State Aids new text end

new text begin 430,045,000 new text end

new text begin 447,941,000 new text end

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

new text begin (b) Municipal State Aids new text end

new text begin 116,093,000 new text end

new text begin 120,911,000 new text end

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

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

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

new text begin Subd. 5. new text end new text begin General Support and Services new text end

new text begin (a) Department Support new text end

new text begin Appropriations by Fund new text end
new text begin Airports new text end	new text begin 25,000 new text end	new text begin 25,000 new text end
new text begin Trunk Highway new text end	new text begin 39,263,000 new text end	new text begin 39,794,000 new text end

new text begin (b) Buildings new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 56,000 new text end	new text begin 56,000 new text end
new text begin Trunk Highway new text end	new text begin 16,576,000 new text end	new text begin 16,618,000 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 Town Road Sign Replacement Program new text end

new text begin $5,000,000 is appropriated from the general
fund to the commissioner of transportation to
implement the town road sign replacement
program established in Laws 2005, First
Special Session chapter 6, article 3, section
89. For the purpose of this appropriation,
implementation includes the purchase and
installation of new signs. This appropriation
may be used to satisfy any local matching
requirement for the receipt of federal funds.
Designated funds not allocated by July 1,
2009, cancel and revert to the general fund.
new text end

new text begin Subd. 7. new text end new text begin Transfers new text end

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

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

new text begin Subd. 8. new text end new text begin Use of State Road Construction Appropriations new text end

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

new text begin Subd. 9. new text end new text begin Contingent Appropriation 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 house of
representatives and senate 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 in order to
take advantage of an unanticipated receipt
of income to the trunk highway fund or
to take advantage of federal advanced
construction funding, (2) for trunk highway
maintenance in order to meet an emergency,
or (3) to pay tort or environmental claims.
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 new text end

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

new text begin $ new text end

new text begin 78,753,000 new text end

new text begin $ new text end

new text begin 78,753,000 new text end

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

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

new text begin 73,453,000 new text end

new text begin 73,453,000 new text end

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

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

new text begin 5,300,000 new text end

new text begin 5,300,000 new text end

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

new text begin This appropriation is for paying 50 percent
of operating costs for the Hiawatha light
rail transit line after operating revenue and
federal funds are used for light rail transit
operations. The remaining operating costs
up to a maximum of $5,300,000 the first year
and $5,300,000 the second year are to be
paid by the Hennepin County Regional Rail
Authority, using any or all of these sources:
new text end

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

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

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

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

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

new text begin $ new text end

new text begin 142,653,000 new text end

new text begin $ new text end

new text begin 148,488,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 6,265,000 new text end	new text begin 6,506,000 new text end
new text begin Trunk Highway new text end	new text begin 80,915,000 new text end	new text begin 85,165,000 new text end
new text begin Highway User new text end	new text begin 8,813,000 new text end	new text begin 9,113,000 new text end
new text begin Special Revenue new text end	new text begin 46,660,000 new text end	new text begin 47,704,000 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 (a) Office of Communications new text end

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

new text begin (b) Public Safety Support new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,135,000 new text end	new text begin 3,308,000 new text end
new text begin Trunk Highway new text end	new text begin 3,331,000 new text end	new text begin 3,420,000 new text end
new text begin Highway User new text end	new text begin 1,366,000 new text end	new text begin 1,366,000 new text end

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

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

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

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

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

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

new text begin (c) Technical Support Services new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 91,000 new text end	new text begin 91,000 new text end
new text begin Trunk Highway new text end	new text begin 2,344,000 new text end	new text begin 2,344,000 new text end
new text begin Highway User new text end	new text begin 19,000 new text end	new text begin 19,000 new text end

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

new text begin (a) Patrolling Highways new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 37,000 new text end	new text begin 37,000 new text end
new text begin Trunk Highway new text end	new text begin 67,695,000 new text end	new text begin 71,591,000 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 $2,060,000 the first year and $3,653,000 the
second year are for the cost of adding 40
state troopers.
new text end

new text begin $1,335,000 the first year and $1,335,000 the
second year are to cover increased fuel costs.
new text end

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

new text begin 6,747,000 new text end

new text begin 6,998,000 new text end

new text begin This appropriation is from the trunk highway
fund.
new text end

new text begin (c) Capitol Security new text end

new text begin 2,963,000 new text end

new text begin 3,030,000 new text end

new text begin The commissioner may 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 The commissioner may not transfer any
money (1) appropriated for Department of
Public Safety administration, the patrolling of
highways, commercial vehicle enforcement,
or driver and vehicle services to capitol
security or (2) from capitol security.
new text end

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

new text begin (a) Vehicle Services new text end

new text begin Appropriations by Fund new text end
new text begin Highway User new text end	new text begin 7,336,000 new text end	new text begin 7,636,000 new text end
new text begin Special Revenue new text end	new text begin 18,649,000 new text end	new text begin 18,928,000 new text end

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

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

new text begin (b) Driver Services new text end

new text begin Appropriations by Fund new text end
new text begin Special Revenue new text end	new text begin 26,753,000 new text end	new text begin 27,527,000 new text end
new text begin Trunk Highway new text end	new text begin 1,000 new text end	new text begin 1,000 new text end

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

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

new text begin 435,000 new text end

new text begin 435,000 new text end

new text begin This appropriation is from the trunk highway
fund.
new text end

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

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

new text begin 1,258,000 new text end

new text begin 1,249,000 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 GENERAL CONTINGENT ACCOUNTS new text end

new text begin $ new text end

new text begin 375,000 new text end

new text begin $ new text end

new text begin 375,000 new text end

new text begin Appropriations by Fund new text end
new text begin Trunk Highway new text end	new text begin 200,000 new text end	new text begin 200,000 new text end
new text begin Highway User new text end	new text begin 125,000 new text end	new text begin 125,000 new text end
new text begin Airports new text end	new text begin 50,000 new text end	new text begin 50,000 new text end

new text begin The appropriations in this section may
only be spent 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 house of representatives and
senate committees with jurisdiction over
transportation finance.
new text end

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

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

new text begin $ new text end

new text begin 600,000 new text end

new text begin $ new text end

new text begin 600,000 new text end

new text begin To be spent by the commissioner of finance.
new text end

new text begin This appropriation is from the trunk highway
fund.
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

Sec. 8. new text begin LAFAYETTE BRIDGE.
new text end

new text begin The commissioner of transportation shall ensure that any reconstruction or
improvement of the Lafayette Bridge segment of U.S. Highway 52 is compatible with the
possibility of future implementation of transit, including light rail transit, on the bridge.
new text end

Sec. 9. new text begin AIRPORT FUNDING ADVISORY TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Task force established. new text end

new text begin The Airport Funding Advisory Task Force is
established to study and make recommendations regarding the best methods for funding
airports in the state and the state airports fund. The task force shall study:
new text end

new text begin (1) the adequacy of current sources of revenue for the state airports fund and airports
in the state;
new text end

new text begin (2) policy considerations regarding the use of the sales tax on aircraft as a potential
source of revenue for airports;
new text end

new text begin (3) how other states fund airports;
new text end

new text begin (4) projected aviation needs of the future, including required investments in aviation
infrastructure;
new text end

new text begin (5) aircraft registration taxes; and
new text end

new text begin (6) other issues relating to the funding of airports as determined by the task force.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The task force is comprised of the following members:
new text end

new text begin (1) three members of the senate, including at least one member from the minority
party, appointed by the Subcommittee on Committees of the Committee on Rules and
Administration of the senate; and
new text end

new text begin (2) three members of the house of representatives, two appointed by the speaker of
the house and one appointed by the minority leader.
new text end

new text begin The appointing authorities must select members based on knowledge and experience in
aviation funding issues. All appointments required by this paragraph must be completed
by September 1, 2007.
new text end

new text begin (b) The chair of the task force may appoint additional nonvoting members to the task
force, including, but not limited to, representatives of the following organizations:
new text end

new text begin (1) the Department of Transportation Aeronautics Office;
new text end

new text begin (2) the Aircraft Owners and Pilots Association;
new text end

new text begin (3) the Experimental Aircraft Association/ACAA;
new text end

new text begin (4) the Metropolitan Airports Commission;
new text end

new text begin (5) the Minnesota Aviation Trades Association;
new text end

new text begin (6) the Minnesota Business Aviation Association;
new text end

new text begin (7) the Minnesota Council of Airports;
new text end

new text begin (8) the Minnesota Seaplane Pilots Association;
new text end

new text begin (9) the National Business Aviation Association; and
new text end

new text begin (10) the Minnesota Wing, Civil Air Patrol.
new text end

new text begin (c) The director of the aeronautics office in the Department of Transportation shall
convene the first meeting of the task force within two weeks after the legislative members
have been appointed to the task force. The members shall elect a chairperson from their
membership at the first meeting.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By February 15, 2008, the task force shall report its
recommendations to the chairs of the legislative committees with jurisdiction over airports
and aviation issues and to the legislature as required by Minnesota Statutes, section 3.195.
new text end

new text begin Subd. 4. new text end

new text begin Expenses. new text end

new text begin Per diem and expenses for members of the task force are as
provided for under Minnesota Statutes, section 15.059.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires after the submission of the report as
required under subdivision 3.
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. new text begin HIGHWAY CONSTRUCTION IN ROCHESTER.
new text end

new text begin The commissioner of transportation shall proceed without delay to issue to the city
of Rochester the necessary permits that allow the city to complete the construction of a
new folded diamond interchange in the Northeast and Northwest quadrants at marked
Trunk Highway 52 and 65th Street NW in the city of Rochester. The commissioner shall
review the environmental documentation prepared by the city in a timely manner and shall
issue the necessary construction permits without delay upon the issuance of a finding of
no significant impact. The cost of the interchange design, right-of-way acquisition, and
construction is the responsibility of the city of Rochester.
new text end

ARTICLE 2

MOTOR VEHICLE SALES TAX, MOTOR VEHICLE LEASE SALES TAX

Section 1.

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

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

Subdivision 1.

new text begin Transit assistance fund established. new text end

new text begin A transit assistance fund is
established within the state treasury. The fund receives money distributed under sections
297A.815, subdivision 3, and 297B.09, subdivision 1, and other money as specified by
law. Money in the fund must be allocated to the greater Minnesota transit account under
subdivision 1a and the metropolitan area transit account under subdivision 2 in the manner
specified in sections 297A.815, subdivision 3, and 297B.09, subdivision 1, and must be
used for transit purposes.
new text end

new text begin Subd. 1a. new text end

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

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

Subd. 2.

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

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

deleted text begin Subd. 3. deleted text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2006, section 297A.70, subdivision 2, is amended to read:

Subd. 2.

Sales to government.

(a) All sales, except those listed in paragraph (b),
to the following governments and political subdivisions, or to the listed agencies or
instrumentalities of governments and political subdivisions, are exempt:

(1) the United States and its agencies and instrumentalities;

(2) school districts, the University of Minnesota, state universities, community
colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
Education, and an instrumentality of a political subdivision that is accredited as an
optional/special function school by the North Central Association of Colleges and Schools;

(3) hospitals and nursing homes owned and operated by political subdivisions of
the state of tangible personal property and taxable services used at or by hospitals and
nursing homes;

deleted text begin (4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
operations provided for in section 473.4051; deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end other states or political subdivisions of other states, if the sale would be
exempt from taxation if it occurred in that state; and

deleted text begin (6) deleted text end new text begin (5) new text end sales to public libraries, public library systems, multicounty, multitype library
systems as defined in section 134.001, county law libraries under chapter 134A, state
agency libraries, the state library under section 480.09, and the Legislative Reference
Library.

(b) This exemption does not apply to the sales of the following products and services:

(1) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;

(2) construction materials purchased by tax exempt entities or their contractors to
be used in constructing buildings or facilities which will not be used principally by the
tax exempt entities;

(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 5,
except for leases entered into by the United States or its agencies or instrumentalities; or

(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause
(2), and prepared food, candy, and soft drinks, except for lodging, prepared food, candy,
and soft drinks purchased directly by the United States or its agencies or instrumentalities.

(c) As used in this subdivision, "school districts" means public school entities and
districts of every kind and nature organized under the laws of the state of Minnesota, and
any instrumentality of a school district, as defined in section 471.59.

Sec. 3.

Minnesota Statutes 2006, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 40. new text end

new text begin Commuter rail and light rail; material, supplies, and equipment.
new text end

new text begin Materials and supplies used or consumed in, and equipment incorporated into, the
construction or improvement of a commuter rail transportation system operated under
sections 174.80 to 174.90 and a light rail transit system constructed and operated under
sections 473.3993 to 473.3997 and 473.4051, are exempt. This exemption includes
railroad cars and engines and related equipment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2006.
new text end

Sec. 4.

Minnesota Statutes 2006, section 297A.815, subdivision 1, is amended to read:

Subdivision 1.

Motor vehicle lease price; payment.

(a) In the case of a lease of
a motor vehicle as provided in section 297A.61, subdivision 4, paragraph (k), clause
(2), the tax is imposed on the total amount to be paid by the lessee under the lease
agreement new text begin , together with the document administration fee or documentary fee under
section 53C.01, subdivision 2 new text end . The lessor shall collect the tax in full at the time the lease
is executed or, if the tax is included in the lease and the lease is assigned, the tax is due
from the original lessor at the time the lease is assigned. The total amount to be paid by
the lessee under the lease agreement equals the agreed-upon value of the vehicle less
manufacturer's rebates, the stated residual value of the leased vehicle, and the total value
allowed for a vehicle owned by the lessee taken in trade by the lessor, plus the price of
any taxable goods and services included in the lease and the rent charge as provided by
Code of Federal Regulations, title 12, section 213.4, excluding any rent charge related
to the capitalization of the tax.

(b) If the total amount paid by the lessee for use of the leased vehicle includes
amounts that are not calculated at the time the lease is executed, the tax is imposed and
must be collected by the lessor at the time the amounts are paid by the lessee. In the case
of a lease which by its terms may be renewed, the sales tax is due and payable on the
total amount to be paid during the initial term of the lease, and then for each subsequent
renewal period on the total amount to be paid during the renewal period.

(c) If a lease is canceled or rescinded on or before 90 days of its execution or if a
vehicle is returned to the manufacturer under section 325F.665, the lessor may file a claim
for a refund of the total tax paid minus the amount of tax due for the period the vehicle is
used by the lessee.

(d) If a lessee's obligation to make payments on a lease is canceled more than 90
days after its execution, a credit is allowed against sales tax or motor vehicles sales tax
due on a subsequent lease or purchase of a motor vehicle if that lease or purchase is
consummated within 30 days of the date the prior lease was canceled. The amount of the
credit is equal to (1) the sales tax paid at the inception of the lease, multiplied by (2)
the ratio of the number of full months remaining in the lease at the time of termination
compared to the term of the lease used in calculating sales tax paid at the inception of the
lease. The credit or any part of it cannot be assigned or transferred to another person.

Sec. 5.

Minnesota Statutes 2006, section 297A.815, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Deposit of revenues. new text end

new text begin Notwithstanding any law to the contrary, money
collected and received under this section must be deposited as follows:
new text end

new text begin (1) From July 1, 2007, through June 30, 2008, after deductions for general
fund appropriations for agency compensation adjustments, town road signs, and port
development assistance, 31.75 percent must be deposited in the highway user tax
distribution fund, and 32 percent must be deposited in the transit assistance fund and
allocated 24 percent to the metropolitan area transit account, and eight percent to the
greater Minnesota transit account. The remaining money must be deposited in the general
fund.
new text end

new text begin (2) From July 1, 2008, through June 30, 2009, after deductions for general fund
appropriations for agency compensation adjustments, 36.75 percent must be deposited in
the highway user tax distribution fund, and 37 percent must be deposited in the transit
assistance fund and allocated 27.75 percent to the metropolitan area transit account,
and 9.25 percent to the greater Minnesota transit account. The remaining money must
be deposited in the general fund.
new text end

new text begin (3) From July 1, 2009, through June 30, 2010, 41.75 percent must be deposited in
the highway user tax distribution fund, and 42 percent must be deposited in the transit
assistance fund and allocated 31.5 percent to the metropolitan area transit account, and
10.5 percent to the greater Minnesota transit account. The remaining money must be
deposited in the general fund.
new text end

new text begin (4) From July 1, 2010, through June 30, 2011, 46.75 percent must be deposited in
the highway user tax distribution fund, and 47 percent must be deposited in the transit
assistance fund and allocated 35.25 percent to the metropolitan area transit account, and
11.75 percent to the greater Minnesota transit account. The remaining money must be
deposited in the general fund.
new text end

new text begin (5) On and after July 1, 2011, 50 percent must be deposited in the highway user tax
distribution fund, and 50 percent must be deposited in the transit assistance fund and
allocated 37.5 percent to the metropolitan area transit account, and 12.5 percent to the
greater Minnesota transit account.
new text end

Sec. 6.

Minnesota Statutes 2006, section 297A.815, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Reporting of tax proceeds. new text end

new text begin A lessor must report taxes collected under
this section separately from any other taxes collected and remitted under this chapter or
chapter 297B.
new text end

Sec. 7.

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

297A.94 DEPOSIT OF REVENUES.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (g) The revenues, including interest and penalties, collected under section 297A.815
must be deposited as provided in section 297A.815, subdivision 3.
new text end

Sec. 8.

Minnesota Statutes 2006, section 297B.01, subdivision 8, is amended to read:

Subd. 8.

Purchase price.

(a) "Purchase price" means the total consideration valued
in money for a sale, whether paid in money or otherwise. The purchase price excludes the
amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle
is taken in trade as a credit or as part payment on a motor vehicle taxable under this
chapter, the credit or trade-in value allowed by the person selling the motor vehicle shall
be deducted from the total selling price to establish the purchase price of the vehicle
being sold and the trade-in allowance allowed by the seller shall constitute the purchase
price of the motor vehicle accepted as a trade-in. The purchase price in those instances
where the motor vehicle is acquired by gift or by any other transfer for a nominal or no
monetary consideration shall also include the average value of similar motor vehicles,
established by standards and guides as determined by the motor vehicle registrar. The
purchase price in those instances where a motor vehicle is manufactured by a person who
registers it under the laws of this state shall mean the manufactured cost of such motor
vehicle and manufactured cost shall mean the amount expended for materials, labor,
and other properly allocable costs of manufacture, except that in the absence of actual
expenditures for the manufacture of a part or all of the motor vehicle, manufactured costs
shall mean the reasonable value of the completed motor vehicle.

(b) The term "purchase price" shall not include the portion of the value of a motor
vehicle due solely to modifications necessary to make the motor vehicle disability
accessible.

(c) The term "purchase price" shall not include the transfer of a motor vehicle by
way of gift between a husband and wife or parent and child, or to a nonprofit organization
as provided under subdivision 7, paragraph (e), nor shall it include the transfer of a motor
vehicle by a guardian to a ward when there is no monetary consideration and the title to
such vehicle was registered in the name of the guardian, as guardian, only because the
ward was a minor.

(d) The term "purchase price" shall not include the transfer of a motor vehicle as a
gift between a foster parent and foster child. For purposes of this subdivision, a foster
relationship exists, regardless of the age of the child, if (1) a foster parent's home is or was
licensed as a foster family home under Minnesota Rules, parts 9545.0010 to 9545.0260,
and (2) the county verifies that the child was a state ward or in permanent foster care.

(e) There shall not be included in "purchase price" the amount of any tax imposed by
the United States upon or with respect to retail sales whether imposed upon the retailer or
the consumer.

new text begin (f) The document administration fee or documentary fee under section 53C.01,
subdivision 2, must be included in the purchase price.
new text end

Sec. 9.

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

Subdivision 1.

Deposit of revenues.

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

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

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

deleted text begin (d) On and after deleted text end new text begin From new text end July 1, 2007, deleted text begin 32 deleted text end new text begin through June 30, 2008, 38.25 new text end percent of the
money collected and received must be deposited in the highway user tax distribution
fund, deleted text begin 20.5 deleted text end new text begin 24.225 new text end percent must be deposited in the metropolitan area transit deleted text begin fund deleted text end new text begin account new text end
under section 16A.88, and deleted text begin 1.25 deleted text end new text begin 1.275 new text end percent must be deposited in the greater Minnesota
transit deleted text begin fund deleted text end new text begin account new text end under section 16A.88. The remaining money must be deposited
in the general fund.

new text begin (c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected
and received must be deposited in the highway user tax distribution fund, 28.025 percent
must be deposited in the metropolitan area transit account under section 16A.88, 1.475
percent must be deposited in the greater Minnesota transit account under section 16A.88,
and the remaining money must be deposited in the general fund.
new text end

new text begin (d) From July 1, 2009, through June 30, 2010, 50.25 percent of the money collected
and received must be deposited in the highway user tax distribution fund, 31.825 percent
must be deposited in the metropolitan area transit account under section 16A.88, 1.675
percent must be deposited in the greater Minnesota transit account under section 16A.88,
and the remaining money must be deposited in the general fund.
new text end

new text begin (e) From July 1, 2010, through June 30, 2011, 56.25 percent of the money collected
and received must be deposited in the highway user tax distribution fund, 35.625 percent
must be deposited in the metropolitan area transit account under section 16A.88, 1.875
percent must be deposited in the greater Minnesota transit account under section 16A.88,
and the remaining money must be deposited in the general fund.
new text end

new text begin (f) On and after July 1, 2011, 60 percent of the money collected and received must
be deposited in the highway user tax distribution fund, 38 percent must be deposited in the
metropolitan area transit account under section 16A.88, and two percent must be deposited
in the greater Minnesota transit account under section 16A.88.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

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

Subd. 4.

Financial assistance.

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

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

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

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

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

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

Sec. 11. new text begin REPEALER.
new text end

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

Sec. 12. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 5 to 7 are effective beginning with revenues collected and remitted
beginning July 1, 2007.
new text end

ARTICLE 3

DRIVER AND VEHICLE SERVICES FEES

Section 1.

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

Subd. 3.

Exceptions.

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

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

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

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

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

Sec. 2.

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

Subd. 5.

Additional fee.

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

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

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

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

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

Sec. 3.

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

Subdivision 1.

Amounts.

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

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

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

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

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

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

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

Sec. 4.

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

Subd. 3.

Motorized bicycle.

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

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

(1) motorized bicycles and their limitations;

(2) motorized bicycle laws and rules;

(3) safe operating practices and basic operating techniques;

(4) helmets and protective clothing;

(5) motorized bicycle traffic strategies; and

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

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

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

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

Sec. 5.

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

Subd. 2.

Fees.

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

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

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

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

Sec. 6.

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

Subd. 3a.

Identification cards for seniors.

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

Sec. 7.

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

Subd. 11.

Standby or temporary custodian.

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

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

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

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

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

(f) The department and its employees:

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

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

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

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

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

Sec. 8.

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

Subd. 4.

Reinstatement fee.

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

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

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

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

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

Sec. 9.

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

299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.

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

new text begin The fees charged for services provided by the State Patrol with a vehicle are $73.60
an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and thereafter. The fees
charged for services provided without a vehicle are $54 an hour in fiscal year 2008 and
$56.16 an hour in fiscal year 2009 and thereafter.
new text end

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

ARTICLE 4

TRUNK HIGHWAY BONDING

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

new text begin Subdivision 1. new text end

new text begin Mankato district headquarters and Transportation Building.
new text end

new text begin $33,388,000 is appropriated from the bond proceeds account in the trunk highway fund.
Of that amount:
new text end

new text begin (1) $20,673,000 is to the commissioner of transportation to design, construct,
furnish, and equip a new Department of Transportation district headquarters facility in
Mankato; and
new text end

new text begin (2) $12,715,000 is to the commissioner of administration to repair and renovate the
exterior of the Department of Transportation Building at 395 John Ireland Boulevard in
St. Paul.
new text end

Sec. 2. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin To provide the money appropriated in this article from the bond proceeds account
in the trunk highway fund, the commissioner of finance shall sell and issue bonds of
the state in an amount up to $33,388,000 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

ARTICLE 5

TRANSPORTATION STATUTORY CHANGES

Section 1.

Minnesota Statutes 2006, section 16A.1522, subdivision 1, is amended to
read:

Subdivision 1.

Forecast.

If, on the basis of a forecast of general fund revenues and
expenditures in November of an even-numbered year or February of an odd-numbered
year, the commissioner projects a positive unrestricted budgetary general fund balance
at the close of the biennium that exceeds one-half of one percent of total general fund
biennial revenues, new text begin 25 percent of the entire balance is appropriated from the general fund
to the commissioner of finance for transfer to the transportation endowment fund. new text end The
commissioner shall designate the deleted text begin entire deleted text end new text begin remaining new text end balance as available for rebate to the
taxpayers of this state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 2.

Minnesota Statutes 2006, section 53C.01, subdivision 2, is amended to read:

Subd. 2.

Cash sale price.

"Cash sale price" means the price at which the seller
would in good faith sell to the buyer, and the buyer would in good faith buy from the seller,
the motor vehicle which is the subject matter of the retail installment contract, if such sale
were a sale for cash, instead of a retail installment sale. The cash sale price may include
any taxes, charges for delivery, servicing, repairing, or improving the motor vehicle,
including accessories and their installation, and any other charges agreed upon between
the parties. The cash price may not include a documentary fee or document administration
fee in excess of deleted text begin $50 deleted text end new text begin $75 new text end for services actually rendered to, for, or on behalf of, the retail
buyer in preparing, handling, and processing documents relating to the motor vehicle and
the closing of the retail sale. "Documentary fee" and "document administration fee" do
not include an optional electronic transfer fee as defined under subdivision 14.

Sec. 3.

new text begin [160.95] CREATION OF FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Transportation endowment fund. new text end

new text begin The transportation endowment
fund is created as an account in the state treasury to receive money as specified by law.
The State Board of Investment shall invest the fund under section 11A.24. All earnings
of the fund must be credited to the fund.
new text end

new text begin Subd. 2. new text end

new text begin Use of fund. new text end

new text begin (a) On July 1 of each year, an amount equal to five
percent of the market value of the fund on the preceding July 1 is appropriated from the
transportation endowment fund to the commissioner of finance for transfer to the funds
specified in this section.
new text end

new text begin (b) Sixty percent of the amount transferred must be credited to the highway user
tax distribution fund.
new text end

new text begin (c) Forty percent of the amount transferred must be credited to the transit fund
and allocated two percent to the greater Minnesota transit account and 38 percent to the
metropolitan area transit account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 4.

Minnesota Statutes 2006, section 161.081, is amended to read:

161.081 HIGHWAY USER TAX, DISTRIBUTION, INVESTMENT.

Subdivision 1.

Distribution of five percent.

(a) Pursuant to article 14, section 5, of
the Constitution, five percent of the net highway user tax distribution fund is set aside, and
apportioned to the county state-aid highway fund.

(b) That apportionment is further distributed as follows:

(1) 30.5 percent to the town road account created in section 162.081;

(2) 16 percent to the town bridge account, which is created in the state treasury; deleted text begin and
deleted text end

(3) new text begin 5.5 percent to the municipal turnback account, which is created in the state
treasury for restoration of trunk highways that have reverted or that will revert to cities;
new text end

new text begin (4) 33.5 percent to the county turnback account, which is created in the state treasury
for restoration of trunk highways that have reverted or will revert to counties; and
new text end

new text begin (5) new text end deleted text begin 53.5 deleted text end new text begin 14.5 new text end percent to the flexible highway account created in subdivision 3.

new text begin 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.
new text end

Subd. 2.

Investment.

Upon the request of the commissioner, money in the highway
user tax distribution fund shall be invested by the State Board of Investment in those
securities authorized for that purpose in section 11A.21. All interest and profits from the
investments must be credited to the highway user tax distribution fund. The commissioner
of finance shall be the custodian of all securities purchased under this section.

Subd. 3.

Flexible highway account; turnback accounts.

(a) The flexible highway
account is created in the state treasury. Money in the account deleted text begin may deleted text end new text begin must new text end be used either
for deleted text begin the restoration of former trunk highways that have reverted to counties or to statutory
or home rule charter cities or for regular trunk highway purposes deleted text end new text begin safety improvements
on trunk highways, county highways, municipal highways or streets, or for routes of
regional significance new text end .

(b) deleted text begin 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 deleted text end .

deleted text begin (c) The commissioner shall review the need for funds to restore highways that have
been or will be turned back and the need for funds for the trunk highway system. deleted text end The
commissioner shall determine, on a biennial basis, the percentage of this flexible account
to be used for deleted text begin county turnbacks, for municipal turnbacks, and for regular trunk highway
projects deleted text end new text begin safety improvements on trunk highways, county highways, municipal highways
or streets, and for routes of regional significance new text end . The commissioner shall make this
determination only after meeting and holding discussions with committees selected by the
statewide associations of both county commissioners and municipal officials.

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

new text begin (c) 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 on
the trunk highway system or as grants to statutory or home rule charter cities, towns, and
counties to assist in paying the costs of constructing or reconstructing trunk highways, city
streets, county highways, or town roads to reduce crashes, deaths, injuries, and property
damage.
new text end

deleted text begin (f) deleted text end new text begin (d) 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.
new text end

new text begin (e) new text end 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 deleted text begin among
the county turnback account, the municipal turnback account, and the trunk highway fund deleted text end new text begin
between the highway safety improvement account and the routes of regional significance
account new text end .

deleted text begin (g) Money apportioned from the flexible highway account to the trunk highway fund
must be used for state road construction and engineering costs.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (e) is effective January 1, 2009, and the remainder
of this section is effective July 1, 2009.
new text end

Sec. 5.

Minnesota Statutes 2006, section 168.1255, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin World War II memorial donation matching account. new text end

new text begin Money remaining
in the World War II memorial donation matching account after the state share of the
construction costs of the World War II memorial has been paid in full is appropriated to the
commissioner of veterans affairs for services and programs for veterans and their families.
new text end

Sec. 6.

Minnesota Statutes 2006, section 174.03, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Highway construction training. new text end

new text begin (a) The commissioner of transportation
shall utilize all federal funds available to this state under United States Code, title 23,
section 140, paragraph (b), to develop, conduct, and administer highway construction
training, including skill improvement programs.
new text end

new text begin (b) The commissioner of transportation must report by February 1 of each
odd-numbered year to the house of representatives and senate committees having
jurisdiction over transportation policy and finance concerning the commissioner's
compliance with paragraph (a). The report must, with respect to each of the two previous
calendar years:
new text end

new text begin (1) describe the highway construction training and skill improvement programs the
commissioner has conducted and administered;
new text end

new text begin (2) analyze the results of the commissioner's training programs;
new text end

new text begin (3) state the amount of federal funds available to this state under United States Code,
title 23, section 140, paragraph (b); and
new text end

new text begin (4) identify the amount spent by the commissioner in conducting and administering
the programs.
new text end

Sec. 7.

Minnesota Statutes 2006, section 174.03, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Disadvantaged business enterprise program. new text end

new text begin (a) The commissioner
shall include in each contract that is funded at least in part by federal funds, a penalty
for each contractor who does not meet the established project disadvantaged business
enterprise goal or demonstrate good faith effort to meet the goal.
new text end

new text begin (b) The commissioner of transportation shall report by February 1 of each
odd-numbered year to the house of representatives and senate committees having
jurisdiction over transportation policy and finance concerning the commissioner's
disadvantaged business enterprise program. The report must, with respect to each of
the two previous calendar years:
new text end

new text begin (1) state the department's annual aspirational goal, compared with the percentage
attained;
new text end

new text begin (2) explain the methodology, applicable facts, and public participation used to
establish the aspirational goal;
new text end

new text begin (3) describe good faith efforts to meet the goal, if the goal was not attained;
new text end

new text begin (4) describe actions to address overconcentration of disadvantaged business
enterprises in certain types of work;
new text end

new text begin (5) state the number of contracts that included disadvantaged business enterprise
goals, the number of contractors that met established disadvantaged business enterprise
goals, and penalties imposed for lack of good faith effort; and
new text end

new text begin (6) describe contracts with no disadvantaged business enterprise goals and, of
those, state number of contracts and amount of each contract with targeted groups under
section 16C.16.
new text end

Sec. 8.

new text begin [174.56] REPORT ON MAJOR HIGHWAY PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Report required. new text end

new text begin The commissioner of transportation shall submit a
report on January 15, 2008, and on January 15 of each year thereafter, on the status of
major highway projects under construction or planned during the year of the report and for
the ensuing 15 years. For purposes of this section, a "major highway project" is a highway
project that has a total cost for all segments that the commissioner estimates at the time
of the report to be at least $10,000,000.
new text end

new text begin Subd. 2. new text end

new text begin Report contents. new text end

new text begin For each major highway project the report must include:
new text end

new text begin (1) a description of the project sufficient to specify its scope and location;
new text end

new text begin (2) a history of the project, including, but not limited to, previous official actions
by the department or the appropriate area transportation partnership, or both, the date
on which the project was first included in the state transportation improvement plan,
the cost of the project at that time, the dates of environmental approval, the dates of
municipal approval, the date of final geometric layout, and the date of establishment of
any construction limits;
new text end

new text begin (3) the project's priority listing or rank within its construction district, if any, as
well as the reasons for that listing or rank, the criteria used in prioritization or rank, any
changes in that prioritization or rank since the project was first included in a department
work plan, and the reasons for those changes; and
new text end

new text begin (4) past and potential future reasons for delay in letting or completing the project.
new text end

new text begin Subd. 3. new text end

new text begin Department resources. new text end

new text begin The commissioner shall prepare and submit the
report with existing department staff and resources.
new text end

Sec. 9.

Minnesota Statutes 2006, section 473.1466, is amended to read:

473.1466 new text begin TRANSPORTATION SYSTEM new text end PERFORMANCE deleted text begin AUDIT;
TRANSIT deleted text end EVALUATION.

deleted text begin (a) In 1997 and every four years thereafter, the council shall provide for an
independent entity selected through a request for proposal process conducted nationwide
to do deleted text end new text begin Prior to each major revision of the transportation policy plan, the council must carry
out new text end a performance deleted text begin audit deleted text end new text begin evaluation new text end of the deleted text begin commuting deleted text end new text begin metropolitan new text end area's transportation
system as a whole. The performance deleted text begin audit deleted text end new text begin evaluation new text end must evaluate the deleted text begin commuting deleted text end
area's ability to meet the deleted text begin region's needs deleted text end new text begin need new text end for effective and efficient transportation of
goods and people deleted text begin , deleted text end new text begin and new text end evaluate deleted text begin future deleted text end trends and their impacts on the deleted text begin region's deleted text end new text begin area's
new text end transportation system deleted text begin , and deleted text end new text begin . The council shall use the results of the performance evaluation
to new text end make recommendations for improving the system new text begin in each revision of the transportation
policy plan new text end . deleted text begin The performance audit must recommend performance-funding measures.
deleted text end

deleted text begin (b) In 1999 and every four years thereafter, the council must evaluate the
performance of the metropolitan transit system's operation in relationship to the regional
transit performance standards developed by the council.
deleted text end

Sec. 10.

Minnesota Statutes 2006, section 473.166, is amended to read:

473.166 CONTROLLED ACCESS; deleted text begin TRANSIT FIXED-GUIDEWAY; deleted text end
APPROVAL.

Before acquiring land for or constructing a controlled access highway deleted text begin or transit
fixed-guideway deleted text end in the area, the state Transportation Department or local government
unit proposing the acquisition or construction shall submit to the council a statement
describing the proposed project. The statement must be in the form and detail required by
the council. The council shall review the statement to ascertain its consistency with its
policy plan and the development guide. No project may be undertaken unless the council
determines that it is consistent with the policy plan. This approval is in addition to the
requirements of any other statute, ordinance or rule.

Sec. 11.

Minnesota Statutes 2006, section 473.386, subdivision 1, is amended to read:

Subdivision 1.

Service objectives.

The council shall implement a special
transportation service, as defined in section 174.29, in the metropolitan area. The service
has the following objectives:

(a) to provide greater access to transportation for the elderly, people with disabilities,
and others with special transportation needs in the metropolitan area;

(b) to develop an integrated system of special transportation service providing
transportation tailored to meet special individual needs in the most cost-efficient manner;
and

(c) to use existing public, private, and private nonprofit providers of service
deleted text begin wherever possible deleted text end new text begin when feasible and cost-efficient new text end , to supplement rather than replace
existing service, and to increase the productivity of all special transportation vehicles
available in the area.

Sec. 12.

Minnesota Statutes 2006, section 473.386, subdivision 2, is amended to read:

Subd. 2.

Service contracts; management; transportation accessibility advisory
committee.

(a) The council may contract for services necessary for the provision of
special transportation. Transportation service provided under a contract must specify the
service to be provided, the standards that must be met, and the rates for operating and
providing special transportation services.

(b) The council shall establish management policies for the service and may contract
with a service administrator for day-to-day administration and management of the service.
Any contract must delegate to the service administrator clear authority to administer and
manage the delivery of the service pursuant to council management policies and must
establish performance and compliance standards for the service administrator. The council
may provide directly day to day administration and management of the service and may
own or lease vehicles used to provide the service.

(c) The council shall ensure that the service administrator establishes a system for
registering and expeditiously responding to complaints by users, informing users of how
to register complaints, and requiring providers to report on incidents that impair the safety
and well-being of users or the quality of the service.

new text begin (d) new text end The council shall deleted text begin annually deleted text end report deleted text begin to the commissioner of transportation and the
legislature on complaints and provider reports, the response of the service administrator,
and steps taken by the council and the service administrator to identify causes and provide
remedies to recurring problems deleted text end new text begin on its special transportation services as part of the program
evaluation provided for in section 473.13, subdivision 1a new text end .

deleted text begin (d) Each year before renewing contracts with providers and the service administrator,
the council shall provide an opportunity for the transportation accessibility advisory
committee, users, and other interested persons to testify before the council concerning
providers, contract terms, and other matters relating to council policies and procedures for
implementing the service.
deleted text end

(e) The council shall establish a Transportation Accessibility Advisory Committee new text begin
consisting of 15 members and a chair to advise the council on management policies for
the council's special transportation service new text end . The Transportation Accessibility Advisory
Committee must include elderly and disabled persons, other users of special transportation
service, deleted text begin representatives of persons contracting to provide special transportation services, deleted text end
and representatives of appropriate agencies for elderly and disabled persons deleted text begin to advise
the council on management policies for the service deleted text end . At least half the Transportation
Accessibility Advisory Committee members must be deleted text begin disabled or elderly persons or
the representatives of disabled or elderly persons. Two of the appointments to the
Transportation Accessibility Advisory Committee shall be made by the Council on
Disability in consultation with the chair of the Metropolitan Council deleted text end new text begin persons who are both
certified under the Americans with Disabilities Act (ADA) and users of public transit
in the metropolitan area new text end .

Sec. 13.

Minnesota Statutes 2006, section 473.386, subdivision 2a, is amended to read:

Subd. 2a.

Eligibility deleted text begin certification deleted text end new text begin application and verification; penalty for
fraudulent certification new text end .

new text begin If the council requires a person to be certified as eligible for
special transportation services, an applicant for certification must submit an application
form and the applicant's eligibility must be verified by a type of professional specified by
the council. new text end The council shall deleted text begin include the notice of penalty for fraudulent certification, and deleted text end new text begin :
new text end

new text begin (1) require the applicant to sign the application form and certify that the application
information is accurate; and
new text end

new text begin (2) new text end require the person deleted text begin certifying deleted text end new text begin verifying new text end the deleted text begin applicant deleted text end new text begin applicant's eligibility new text end to sign
the eligibility deleted text begin certification deleted text end new text begin verification new text end form and deleted text begin the applicant to sign the application form,
as provided in section 174.295 deleted text end new text begin certify that the verifying information is accurate new text end .

new text begin The penalty provided for in section 174.295, subdivision 4, applies to the
certifications by the applicant and the person verifying the applicant's eligibility. The
council must include a notice of the penalty for fraudulent certification in the application
form and the eligibility verification form.
new text end

Sec. 14.

Minnesota Statutes 2006, section 473.386, subdivision 3, is amended to read:

Subd. 3.

Duties of council.

In implementing the special transportation service, the
council shall:

(a) encourage participation in the service by public, private, and private nonprofit
providers of special transportation currently receiving capital or operating assistance
from a public agency;

(b) new text begin when feasible and cost-efficient, new text end contract with public, private, and private
nonprofit providers that have demonstrated their ability to effectively provide service at
a reasonable cost;

(c) encourage individuals using special transportation to use the type of service
most appropriate to their particular needs;

deleted text begin (d) ensure that all persons providing special transportation service receive equitable
treatment in the allocation of the ridership;
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end encourage shared rides to the greatest extent practicable;

deleted text begin (f) deleted text end new text begin (e) new text end encourage public agencies that provide transportation to eligible individuals
as a component of human services and educational programs to coordinate with this
service and to allow reimbursement for transportation provided through the service at rates
that reflect the public cost of providing that transportation;

deleted text begin (g) deleted text end new text begin (f) new text end establish criteria to be used in determining individual eligibility for special
transportation services;

deleted text begin (h) deleted text end new text begin (g) new text end consult with the Transportation Accessibility Advisory Committee in a
timely manner before changes are made in the provision of special transportation services deleted text begin ,
including, but not limited to, changes in policies affecting the matters subject to hearing
under subdivision 2 deleted text end ;

deleted text begin (i) deleted text end new text begin (h) new text end provide for effective administration and enforcement of council policies
and standards; new text begin and
new text end

deleted text begin (j) annually evaluate providers of special transportation service to ensure compliance
with the standards established for the program; and deleted text end

deleted text begin (k) deleted text end new text begin (i) new text end ensure that, taken as a whole including contracts with public, private, and
private nonprofit providers, the geographic coverage area of the special transportation
service is continuous within the boundaries of the transit taxing district, as defined as of
March 1, 2006, in section 473.446, subdivision 2.

Sec. 15.

Minnesota Statutes 2006, section 473.39, is amended by adding a subdivision
to read:

new text begin Subd. 1m. new text end

new text begin OBLIGATIONS. new text end

new text begin After July 1, 2007, in addition to other authority in
this section, the council may issue certificates of indebtedness, bonds, or other obligations
under this section in an amount not exceeding $44,000,000 for capital expenditures as
prescribed in the council's regional transit master plan and transit capital improvement
program and for related costs, including the costs of issuance and sale of the obligations.
new text end

Sec. 16.

Minnesota Statutes 2006, section 473.399, is amended to read:

473.399 new text begin TRANSIT WAYS; new text end LIGHT RAIL TRANSIT AND COMMUTER RAIL
deleted text begin PLANNING deleted text end new text begin IN METROPOLITAN AREA new text end .

Subdivision 1.

General requirements.

(a) new text begin The council must identify in its
transportation policy plan those heavily traveled corridors where development of a transit
way may be feasible and cost-effective. Modes of providing service in a transit way may
include bus rapid transit, light rail transit, commuter rail, or other available systems or
technologies that improve transit service.
new text end

new text begin (b) After the completion of environmental studies and receipt of input from the
governing body of each statutory and home rule charter city, county, and town in which a
transit way is proposed to be constructed, the council must designate the locally preferred
alternative transit mode with respect to the corridor.
new text end

new text begin (c) new text end The council shall deleted text begin adopt a plan to deleted text end ensure that new text begin any new text end light rail transit facilities new text begin
that are designated as the locally preferred alternative and that are to be constructed new text end in
the metropolitan area will be acquired, developed, owned, and capable of operation in
an efficient, cost-effective, and coordinated manner in coordination with buses and other
transportation modes and facilities. deleted text begin The plan may be developed and adopted in phases
corresponding to phasing of construction of light rail. The council may incorporate into its
plan appropriate elements of the plans of regional railroad authorities in order to avoid
duplication of effort.
deleted text end

deleted text begin (b) The light rail transit plan or first phase of the plan required by this section must
be adopted by the council before the commissioner of transportation may begin deleted text end new text begin (d) new text end
Construction of light rail transit facilities new text begin in a particular transit corridor may not commence
unless and until that mode is designated as the locally preferred alternative for that corridor
by the council new text end . deleted text begin Following adoption of the plan, the commissioner of transportation shall
act in conformity with the plan. The commissioner shall prepare or amend the final design
plans as necessary to make the plans consistent with the light rail transit plan.
deleted text end

deleted text begin (c) Throughout the development and implementation of the plan, the council shall
contract for or otherwise obtain engineering services to assure that the plan adequately
addresses the technical aspects of light rail transit.
deleted text end

Subd. 1a.

Integrated transportation system.

The commissioner of transportation
and the Metropolitan Council shall ensure that deleted text begin the deleted text end light rail transit and commuter rail
facilities are planned, designed, and implemented: (1) to move commuters and transit
users into and out of, as well as within, the metropolitan area, and (2) to ensure that rail
transit lines will interface with each other and other transportation facilities and services
so as to provide a unified, integrated, and efficient multimodal transportation system.

Subd. 4.

Expenditure of state funds.

No state funds may be expended by the
Metropolitan Council to study new text begin a particular new text end light rail transit or commuter rail new text begin facility new text end unless
the funds are appropriated in legislation that identifies new text begin the new text end route, including the origin
and destination.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2006, section 473.3993, subdivision 3, is amended to read:

Subd. 3.

Final design plan.

"Final design plan" means a light rail transit plan that
includes the items in the preliminary design plan and the preliminary engineering plan for
the facilities proposed but with greater detail and specificity needed for construction. The
final design plan must include, at a minimum:

(1) final plans for the physical design of facilities, including the right-of-way
definition; environmental impacts and mitigation measures; intermodal coordination with
bus operations and routes; and civil engineering plans for vehicles, track, stations, parking,
and access, including disability access; and

(2) final plans for civil engineering for electrification, communication, and other
similar facilities; operational rules, procedures, and strategies; capital costs; ridership;
operating costs and revenues, and sources of funds for operating subsidies; financing for
construction and operation; an implementation method; and other similar matters.

The final design plan must be stated with sufficient particularity and detail to
allow the proposer to begin the acquisition and construction of operable facilities. If a
design-build implementation method is proposed, instead of civil engineering plans the
final design plan must state detailed design criteria and performance standards for the
facilities.

deleted text begin The commissioner of transportation may use deleted text end A design-build method of project
development and construction new text begin may be utilized new text end for new text begin construction of new text end light rail transit.
Notwithstanding any law to the contrary, the deleted text begin commissioner may award a deleted text end design-build
contract new text begin may be awarded new text end on the basis of requests for proposals or requests for qualifications
without bids. "Design-build method of project development and construction" means a
project delivery system in which a single contractor is responsible for both the design and
construction of the project and bids the design and construction together.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2006, section 473.3994, is amended to read:

473.3994 LIGHT RAIL TRANSIT; DESIGN PLANS.

new text begin Subd. 1a. new text end

new text begin Designation of responsible authority. new text end

new text begin For each proposed light rail transit
facility in the metropolitan area, the governor must designate either the Metropolitan
Council or the state of Minnesota acting through the commissioner of transportation as
the entity responsible for planning, designing, acquiring, constructing, and equipping the
facility. For the purposes of this section and section 473.3997, the term "responsible
authority" means the entity designated by the governor for a particular light rail transit
facility. Notwithstanding such designation, the commissioner and the council may
enter into one or more cooperative agreements with respect to the planning, designing,
acquiring, constructing, or equipping of a particular light rail transit facility that provide
for the parties to exercise their respective authorities in support of the project in a manner
that best serves the project and the public.
new text end

Subd. 2.

Preliminary design plans; public hearing.

Before final design plans are
prepared for a light rail transit facility new text begin in the metropolitan area new text end , the deleted text begin commissioner of
transportation deleted text end new text begin responsible authority new text end and the regional railroad authority or authorities
in whose jurisdiction the line or lines are located must hold a public hearing on the
physical design component of the preliminary design plans. The deleted text begin commissioner of
transportation deleted text end new text begin responsible authority new text end and the regional railroad authority or authorities in
whose jurisdiction the line or lines are located must provide appropriate public notice of
the hearing and publicity to ensure that affected parties have an opportunity to present
their views at the hearing. The deleted text begin commissioner deleted text end new text begin responsible authority new text end shall summarize the
proceedings and testimony and maintain the record of a hearing held under this section,
including any written statements submitted.

Subd. 3.

Preliminary design plans; local approval.

new text begin (a) new text end At least 30 days before
the hearing under subdivision 2, the deleted text begin commissioner of transportation deleted text end new text begin responsible authority new text end
shall submit the physical design component of the preliminary design plans to the
governing body of each statutory and home rule charter city, county, and town in which
the route is proposed to be located. The city, county, or town shall hold a public hearing.
Within 45 days after the hearing under subdivision 2, the city, county, or town shall review
and approve or disapprove the plans for the route to be located in the city, county, or town.
A local unit of government that disapproves the plans shall describe specific amendments
to the plans that, if adopted, would cause the local unit to withdraw its disapproval. Failure
to approve or disapprove the plans in writing within 45 days after the hearing is deemed
to be approval, unless an extension of time is agreed to by the city, county, or town and
the deleted text begin commissioner of transportation deleted text end new text begin responsible authority new text end .

Subd. 4.

Preliminary design plans; council referral.

If the governing body of
one or more cities, counties, or towns disapproves the preliminary design plans within
the period allowed under subdivision 3, the deleted text begin commissioner of transportation may refer the
plans, along with any comments of local jurisdictions, to the Metropolitan Council. The deleted text end
council shall hold a hearing on the plans, giving the commissioner of transportation, new text begin if the
responsible authority, new text end any disapproving local governmental units, and other persons an
opportunity to present their views on the plans. The council may conduct independent
study as it deems desirable and may mediate and attempt to resolve disagreements about
the plans. Within deleted text begin 90 deleted text end new text begin 60 new text end days after the deleted text begin referral deleted text end new text begin hearing new text end , the council shall review the
plans deleted text begin submitted by the commissioner of transportation and the council deleted text end new text begin and new text end shall decide
what amendments to the plans, if any, must be made to accommodate the objections
presented by the disapproving local governmental units. deleted text begin The commissioner shall make the deleted text end
Amendments to the plans new text begin as decided by the council must be made new text end before continuing the
planning and designing process.

Subd. 5.

Final design plans.

(a) If the final design plans incorporate a substantial
change from the preliminary design plans with respect to location, length, or termini
of routes; general dimension, elevation, or alignment of routes and crossings; location
of tracks above ground, below ground, or at ground level; or station locations, before
beginning construction, the deleted text begin commissioner deleted text end new text begin responsible party new text end shall submit the changed
component of new text begin the new text end final design plans to the governing body of each statutory and home
rule city, county, and town in which the changed component is proposed to be located.
Within 60 days after the submission of the plans, the city, county, or town shall review
and approve or disapprove the changed component located in the city, county, or town. A
local unit of government that disapproves the change shall describe specific amendments
to the plans that, if adopted, would cause the local unit to withdraw its disapproval.
Failure to approve or disapprove the changed plans in writing within the time period is
deemed to be approval, unless an extension is agreed to by the city, county, or town and
the deleted text begin commissioner deleted text end new text begin responsible authority new text end .

(b) If the governing body of one or more cities, counties, or towns disapproves the
changed plans within the period allowed under paragraph (a), the deleted text begin commissioner may refer
the plans, along with any comments of local jurisdictions, to the Metropolitan Council.
The deleted text end council shall review the final design plans under the same procedure and with the
same effect as provided in subdivision 4 for preliminary design plans.

Subd. 7.

Council review.

new text begin If the commissioner is the responsible authority, new text end before
proceeding with construction of a light rail transit facility, the commissioner must submit
preliminary and final design plans to the Metropolitan Council. The council must review
the plans for consistency with the council's development guide and approve the plans.

Subd. 8.

Metropolitan significance.

This section does not diminish or replace the
authority of the council under section 473.173.

Subd. 9.

Light rail transit operating costs.

(a) Before submitting an application for
federal assistance for light rail transit facilities in the metropolitan area, the deleted text begin applicant must
provide to the deleted text end Metropolitan Council deleted text begin estimates deleted text end new text begin must prepare an estimate new text end of the amount
of operating subsidy which will be required to operate light rail transit in the corridor to
which the federal assistance would be applied. The deleted text begin information provided to the council deleted text end new text begin
estimate new text end must indicate the amount of operating subsidy estimated to be required in each
of the first ten years of operation of the light rail transit facility. new text begin If the commissioner of
transportation is the responsible authority, the commissioner must provide information
requested by the council that is necessary to make the estimate.
new text end

(b) The council must review and evaluate the deleted text begin information provided deleted text end new text begin estimate
developed new text end under paragraph (a) with regard to the effect of operating the light rail transit
facility on the currently available mechanisms for financing transit in the metropolitan area.

Subd. 10.

Corridor Management Committee.

new text begin (a) The responsible authority
must establish new text end a Corridor Management Committee deleted text begin shall be established deleted text end to advise the
deleted text begin commissioner of transportation deleted text end new text begin responsible authority new text end in the design and construction of
light rail transit in each corridor to be constructed. The Corridor Management Committee new text begin
for each corridor new text end shall consist of the following members:

(1) one member appointed by each city and county in which the corridor is located;

(2) the commissioner of transportation or a designee of the commissioner;

(3) two members appointed by the Metropolitan Council, one of whom shall be
designated as the chair of the committee;

(4) one member appointed by the Metropolitan Airports Commission, if the
designated corridor provides direct service to the Minneapolis-St. Paul International
Airport; and

(5) one member appointed by the president of the University of Minnesota, if the
designated corridor provides direct service to the university.

new text begin (b) new text end The Corridor Management Committee shall advise the deleted text begin commissioner of
transportation deleted text end new text begin responsible authority new text end on issues relating to deleted text begin the alternatives analysis, deleted text end
environmental review, preliminary design, preliminary engineering, final design,
implementation method, and construction of light rail transit new text begin in the corridor new text end .

Subd. 13.

Dispute resolution.

In the event of a dispute between any of the parties
arising from the parties' respective authority and responsibility under this section, the
dispute shall be submitted to the Metropolitan Council for final resolution by any party to
the dispute. The Metropolitan Council shall establish by July 1, 1993, a process to ensure
a prompt and speedy resolution of the dispute. This process shall allow the parties to
provide evidence and testimony in support of their positions.

new text begin Subd. 14. new text end

new text begin Transfer of facility after construction. new text end

new text begin If the commissioner of
transportation is the responsible authority for a particular light rail transit facility, the
commissioner must transfer to the Metropolitan Council all facilities constructed and
all equipment and property acquired in developing the facility upon completion of
construction.
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. 19.

Minnesota Statutes 2006, section 473.3997, is amended to read:

473.3997 FEDERAL FUNDING; LIGHT RAIL TRANSIT.

(a) Upon completion of the alternatives analysis and draft environmental impact
statement new text begin , and selection of the locally preferred alternative, new text end for deleted text begin the central corridor
transit improvement project deleted text end new text begin each light rail transit facility new text end , the deleted text begin council, the commissioner
of transportation, and the affected regional rail authorities deleted text end new text begin responsible authority new text end may
prepare deleted text begin a joint deleted text end new text begin an new text end application for federal assistance for new text begin the new text end light rail transit deleted text begin facilities in the
metropolitan area deleted text end new text begin facility new text end . new text begin If the commissioner is the responsible authority, new text end the application
must be reviewed and approved by the Metropolitan Council before it is submitted by deleted text begin the
council and deleted text end the commissioner. In reviewing the application the council must consider the
deleted text begin information submitted to it deleted text end new text begin operating cost estimate developed new text end under section 473.3994,
subdivision 9.

(b) deleted text begin Until the application described in paragraph (a) is submitted deleted text end new text begin Except for the
designated responsible authority for a particular light rail transit facility new text end , no political
subdivision in the metropolitan area may on its own apply for federal assistance for light
rail transit planning or construction.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

new text begin [473.3999] LIGHT RAIL TRANSIT CONSTRUCTION IN THE
METROPOLITAN AREA; COUNCIL AUTHORITY.
new text end

new text begin The Metropolitan Council may exercise the powers granted in this chapter and in
other applicable law, as necessary, to plan, design, acquire, construct, and equip light rail
transit facilities in the metropolitan area as defined in section 473.121, subdivision 2.
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. 21.

Minnesota Statutes 2006, section 473.4051, is amended to read:

473.4051 LIGHT RAIL TRANSIT OPERATION.

The council shall operate new text begin all new text end light rail transit facilities and services new text begin located in the
metropolitan area new text end upon completion of construction of the facilities and the commencement
of revenue service using the facilities. The deleted text begin commissioner of transportation and the deleted text end council
may not allow the commencement of revenue service until after an appropriate period of
acceptance testing to ensure new text begin safe and new text end satisfactory performance. In assuming the operation
of the system, the council must comply with section 473.415. The council shall coordinate
operation of the light rail transit system with bus service to avoid duplication of service
on a route served by light rail transit and to ensure the widest possible access to light rail
transit lines in both suburban and urban areas by means of a feeder bus system.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2006, section 473.407, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

The council may appoint peace officers, as defined
in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency,
as defined in section 626.84, subdivision 1, paragraph (f), known as the Metropolitan
Transit Police, to police its transit property and routes, to carry out investigations, and to
make arrests under sections 629.30 and 629.34. The jurisdiction of the law enforcement
agency is limited to offenses relating to council transit property, equipment, employees,
and passengers. new text begin The jurisdiction of the Metropolitan Transit Police includes traffic lanes
designed for bus or transit use, freeway or expressway shoulders in the seven-county
metropolitan area used by authorized transit buses and metro mobility buses under section
169.306, and high-occupancy vehicle lanes used by transit buses. Upon request from, or
under an agreement with, any law enforcement agency and subject to the availability of
its personnel and other resources, the Metropolitan Transit Police may exercise general
law enforcement agency authority to assist any law enforcement agency in implementing
or carrying out law enforcement activities, programs, or initiatives. If the commissioner
of transportation contracts with the Metropolitan Council for operation of commuter rail
facilities under section 174.90, the jurisdiction of the Metropolitan Transit Police extends
to offenses relating to the operation, property, facilities, equipment, employees, and
passengers of the commuter rail facilities located in and outside of the metropolitan area.
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. 23.

Minnesota Statutes 2006, section 473.446, subdivision 2, is amended to read:

Subd. 2.

Transit taxing district.

The metropolitan transit taxing district deleted text begin is hereby
designated as that portion of the metropolitan transit area lying within the following
named cities, towns, or unorganized territory within the counties indicated:
deleted text end

deleted text begin (a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids,
Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;
deleted text end

deleted text begin (b) Carver County. Chanhassen, the city of Chaska;
deleted text end

deleted text begin (c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale,
Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;
deleted text end

deleted text begin (d) Ramsey County. All of the territory within Ramsey County;
deleted text end

deleted text begin (e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin,
Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley,
Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis,
Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield,
Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata,
Woodland, the unorganized territory of Hennepin County;
deleted text end

deleted text begin (f) Scott County. Prior Lake, Savage, Shakopee;
deleted text end

deleted text begin (g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport,
Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport,
Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury deleted text end new text begin means the
metropolitan area new text end .

The Metropolitan Council in its sole discretion may provide transit service by
contract deleted text begin beyond the boundaries of the metropolitan transit taxing district or deleted text end to cities and
towns deleted text begin within the taxing district deleted text end which are receiving financial assistance under section
473.388, upon petition therefor by an interested city, township or political subdivision
within the metropolitan transit area. The Metropolitan Council may establish such
terms and conditions as it deems necessary and advisable for providing the transit
service, including such combination of fares and direct payments by the petitioner as
will compensate the council for the full capital and operating cost of the service and the
related administrative activities of the council. The amount of the levy made by any
municipality to pay for the service shall be disregarded when calculation of levies subject
to limitations is made, provided that cities and towns receiving financial assistance under
section 473.388 shall not make a special levy under this subdivision without having first
exhausted the available local transit funds as defined in section 473.388. The council shall
not be obligated to extend service deleted text begin beyond the boundaries of the taxing district, or deleted text end to cities
and towns within the taxing district which are receiving financial assistance under section
473.388, under any law or contract unless or until payment therefor is received.

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2006, section 473.446, subdivision 8, is amended to read:

Subd. 8.

State review.

The commissioner of revenue shall certify the council's levy
limitation under this section to the council by August 1 of the levy year. The council
must certify its proposed property tax levy under this section to the commissioner of
revenue by September 1 of the levy year. The commissioner of revenue shall annually
determine whether the property tax for transit purposes certified by the council for levy
following the adoption of its proposed budget is within the levy limitation imposed by
deleted text begin subdivisions deleted text end new text begin subdivision new text end 1 deleted text begin and 1b deleted text end . deleted text begin The deleted text end deleted text begin commissioner shall also annually determine
whether the transit tax imposed on all taxable property within the metropolitan transit area
but outside of the metropolitan transit taxing district is within the levy limitation imposed
deleted text end deleted text begin by subdivision 1a. deleted text end The determination must be completed prior to September 10 of each
year. If current information regarding market valuation in any county is not transmitted to
the commissioner in a timely manner, the commissioner may estimate the current market
valuation within that county for purposes of making the calculations.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2006, section 609.531, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purpose of sections 609.531 to 609.5318, the
following terms have the meanings given them.

(a) "Conveyance device" means a device used for transportation and includes, but
is not limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any
equipment attached to it. The term "conveyance device" does not include property which
is, in fact, itself stolen or taken in violation of the law.

(b) "Weapon used" means a dangerous weapon as defined under section 609.02,
subdivision 6, that the actor used or had in possession in furtherance of a crime.

(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).

(d) "Contraband" means property which is illegal to possess under Minnesota law.

(e) "Appropriate agency" means the Bureau of Criminal Apprehension, the
Minnesota Division of Driver and Vehicle Services, the Minnesota State Patrol, a
county sheriff's department, the Three Rivers Park District park rangers, the Department
of Natural Resources Division of Enforcement, the University of Minnesota Police
Department, the Department of Corrections' Fugitive Apprehension Unit, or a city new text begin ,
metropolitan transit, new text end or airport police department.

(f) "Designated offense" includes:

(1) for weapons used: any violation of this chapter, chapter 152, or chapter 624;

(2) for driver's license or identification card transactions: any violation of section
171.22; and

(3) for all other purposes: a felony violation of, or a felony-level attempt or
conspiracy to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.21;
609.221; 609.222; 609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.282;
609.283; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1,
clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j); 609.345,
subdivision 1, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466;
609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561;
609.562; 609.563; 609.582; 609.59; 609.595; 609.631; 609.66, subdivision 1e; 609.671,
subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88; 609.89;
609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation of
section 609.891 or 624.7181; or any violation of section 609.324.

(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

new text begin EFFECTIVE DATE. new text end

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

Sec. 26. new text begin NORTHSTAR CORRIDOR COMMUTER RAIL STATION.
new text end

new text begin The commissioner of transportation shall incorporate a station located in the city
of Fridley in final design plans and construction of the Northstar Corridor Commuter
Rail Line.
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. 27. new text begin APPLICATION.
new text end

new text begin Sections 9 to 24 apply in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
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. 28. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 473.123, subdivision 3d; 473.1465; and 473.4461, new text end new text begin
are repealed.
new text end

new text begin (b) Laws 1999, chapter 230, section 44, new text end new text begin is repealed.
new text end