SF 2321

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/27/2012 01:31pm

A bill for an act
relating to transportation; providing for alternatives for contracting and
procurement, state aid, traffic regulations and reports, vehicles, vehicle titles,
school buses, transit fares, and studies; providing penalties; appropriating
money; amending Minnesota Statutes 2010, sections 13.72, by adding a
subdivision; 116.06, subdivision 22; 161.14, by adding a subdivision; 161.321;
162.02, subdivisions 2, 3; 162.09, subdivisions 2, 3, 4; 162.13, subdivision
1; 162.155; 168.10, subdivision 1a; 168.27, subdivisions 2, 3, 3c; 168A.01,
subdivisions 6a, 8a, 12a, 16, by adding a subdivision; 168A.04, subdivision
5; 168A.05, subdivision 3; 168A.09, by adding a subdivision; 168A.15,
subdivision 2; 168A.151, subdivisions 1, 6; 169.06, subdivision 4; 169.09,
subdivision 13; 169.222, subdivision 6; 169.4501, subdivisions 1, 2; 169.4503,
subdivisions 5, 20, by adding subdivisions; 169.4582, subdivision 2; 169.79,
subdivision 6; 169.86, by adding a subdivision; 169.865, subdivision 4; 169.98,
subdivisions 1, 3; 174.03, by adding a subdivision; 299D.09; 325F.6641;
325F.6644, subdivisions 1, 2; Minnesota Statutes 2011 Supplement, sections
169.86, subdivision 5; 297B.03; Laws 2009, chapter 36, article 3, sections 28;
29; proposing coding for new law in Minnesota Statutes, chapters 161; 171; 174;
repealing Minnesota Statutes 2010, sections 169.441, subdivision 5; 169.445,
subdivision 2; 169.454, subdivision 10.

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

Section 1.

Minnesota Statutes 2010, section 13.72, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Construction manager/general contractor data. new text end

new text begin When the Department
of Transportation undertakes a construction manager/general contractor contract, as
defined and authorized in sections 161.3207 to 161.3209, the provisions of this subdivision
apply.
new text end

new text begin (a) When the commissioner of transportation solicits a request for qualifications:
new text end

new text begin (1) the following data are classified as protected nonpublic:
new text end

new text begin (i) the statement of qualifications scoring evaluation manual; and
new text end

new text begin (ii) the statement of qualifications evaluations;
new text end

new text begin (2) the following data are classified as nonpublic: the statement of qualifications
submitted by a potential construction manager/general contractor; and
new text end

new text begin (3) the following data are classified as private data: identifying information
concerning the members of the technical review committee.
new text end

new text begin (b) When the commissioner of transportation announces the short list of qualified
construction managers/general contractors, the following data become public:
new text end

new text begin (1) the statement of qualifications scoring evaluation manual; and
new text end

new text begin (2) the statement of qualifications evaluations.
new text end

new text begin (c) When the commissioner of transportation solicits a request for proposals:
new text end

new text begin (1) the following data are classified as protected nonpublic: the proposal scoring
manual; and
new text end

new text begin (2) the following data are classified as nonpublic data:
new text end

new text begin (i) the proposals submitted by a potential construction manager/general contractor;
and
new text end

new text begin (ii) the proposal evaluations.
new text end

new text begin (d) When the commissioner of transportation has completed the ranking of proposals
and announces the selected construction manager/general contractor, the proposal
evaluation score or rank and proposal evaluations become public.
new text end

new text begin (e) When the commissioner of transportation conducts contract negotiations
with a construction manager/general contractor, government data created, collected,
stored, and maintained during those negotiations are nonpublic data until a construction
manager/general contractor contract is fully executed.
new text end

new text begin (f) When the construction manager/general contractor contract is fully executed or
when the commissioner of transportation decides to use another contract procurement
process other than construction manager/general contractor authority authorized under
section 161.3209, subdivision 3, paragraph (b), all remaining data not already made public
under this subdivision become public.
new text end

new text begin (g) If the commissioner of transportation rejects all responses to a request for
proposals before a construction manager/general contractor contract is fully executed,
all data other than that data made public under this subdivision retains its classification
until a resolicitation of the request for proposals results in a fully executed construction
manager/general contractor contract, or a determination is made to abandon the project. If
a resolicitation of proposals does not occur within one year of the announcement of the
request for proposals, the remaining data become public.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires one year following the acceptance of ten construction manager/general
contractor contracts.
new text end

Sec. 2.

Minnesota Statutes 2010, section 116.06, subdivision 22, is amended to read:

Subd. 22.

Solid waste.

"Solid waste" means garbage, refuse, sludge from a water
supply treatment plant or air contaminant treatment facility, and other discarded waste
materials and sludges, in solid, semisolid, liquid, or contained gaseous form, resulting
from industrial, commercial, mining, and agricultural operations, and from community
activities, but does not include hazardous waste; animal waste used as fertilizer; earthen
fill, boulders, rock; new text begin concrete diamond grinding and saw slurry associated with the
construction, improvement, or repair of a road when deposited on the road project site
in a manner that is in compliance with general standards and best practices for waters
of the state under rules of the agency; new text end sewage sludge; solid or dissolved material in
domestic sewage or other common pollutants in water resources, such as silt, dissolved
or suspended solids in industrial wastewater effluents or discharges which are point
sources subject to permits under section 402 of the Federal Water Pollution Control Act,
as amended, dissolved materials in irrigation return flows; or source, special nuclear, or
by-product material as defined by the Atomic Energy Act of 1954, as amended.

Sec. 3.

Minnesota Statutes 2010, section 161.14, is amended by adding a subdivision
to read:

new text begin Subd. 70. new text end

new text begin Black and Yellow Trail. new text end

new text begin Legislative Route No. 7, signed as Trunk
Highway 14 as of the effective date of this section, from the border with South Dakota
to the border with Wisconsin, is designated as the "Black and Yellow Trail." The
commissioner shall adopt a suitable design to mark this highway and erect appropriate
signs, subject to section 161.139.
new text end

Sec. 4.

new text begin [161.318] CONTINGENT APPROPRIATION TO FUND STATE ROAD
OPERATION, MAINTENANCE, PLANNING, AND CONSTRUCTION.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriation for state roads. new text end

new text begin If, before July 1 of an odd-numbered
year, legislation is not enacted to appropriate money to the commissioner of transportation
for state roads in the next fiscal year, on July 1, an amount sufficient to pay the costs
described in this subdivision is appropriated from the trunk highway fund to the
commissioner of transportation for costs of contracts relating to state roads operation
and maintenance, program planning and delivery, and state road construction. The
appropriation must be sufficient to pay both the described contract costs and the costs of
Department of Transportation employees whose work is essential to the administration
and performance of the contracts. This section applies only to those contracts as to which
funds were encumbered before the July 1 appropriation date. The commissioner of
management and budget shall ensure that the commissioner of transportation is able to
access money under this appropriation. Any subsequent appropriation to the commissioner
of transportation for a biennium in which this subdivision has been applied shall supersede
and replace the funding authorized in this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Continued operations. new text end

new text begin If, by July 1 of an odd-numbered year, legislation
has not been enacted to appropriate money for the next biennium to the commissioner
of management and budget for central accounting, procurement, payroll, and human
resources functions, amounts necessary to operate those functions stated in subdivision
1 are appropriated for the next biennium from the general fund to the commissioner of
management and budget. As necessary, the commissioner may transfer a portion of
this appropriation to other state agencies to support carrying out these functions. Any
subsequent appropriation to the commissioner of management and budget for a biennium
in which this section has been applied shall supersede and replace the funding authorized
in this section.
new text end

Sec. 5.

new text begin [161.3207] CONSTRUCTION MANAGER/GENERAL CONTRACTOR
CONTRACTS; DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The terms used in sections 161.3207 to 161.3209 have the
meanings given them in this section.
new text end

new text begin Subd. 2. new text end

new text begin Acceptance. new text end

new text begin "Acceptance" means an action of the commissioner
authorizing the execution of a construction manager/general contractor contract.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of
transportation.
new text end

new text begin Subd. 4. new text end

new text begin Construction manager/general contractor. new text end

new text begin "Construction
manager/general contractor" means a proprietorship, partnership, limited liability
partnership, joint venture, corporation, any type of limited liability company, professional
corporation, or any legal entity selected by the commissioner to act as a construction
manager to manage the construction process, which includes, but is not limited to,
responsibility for the price, schedule, and execution of preconstruction services or the
workmanship of construction performed according to section 161.3209, or both.
new text end

new text begin Subd. 5. new text end

new text begin Construction manager/general contractor contract. new text end

new text begin "Construction
manager/general contractor contract" means a contract for construction of a project
between a construction manager/general contractor and the commissioner, which
must include terms providing for a price, construction schedule, and workmanship of
the construction performed. The construction manager/general contractor contract
may include provisions for incremental price contracts for specific work packages,
additional work performed, contingencies, or other contract provisions that will allow the
commissioner to negotiate time and cost changes to the contract.
new text end

new text begin Subd. 6. new text end

new text begin Past performance; experience. new text end

new text begin "Past performance" or "experience" does
not include the exercise or assertion of a person's legal rights.
new text end

new text begin Subd. 7. new text end

new text begin Preconstruction services. new text end

new text begin "Preconstruction services" means all
non-construction-related services that a construction manager/general contractor is
allowed to perform before execution of a construction manager/general contractor contract
or work package.
new text end

new text begin Subd. 8. new text end

new text begin Preconstruction services contract. new text end

new text begin "Preconstruction services contract"
means a contract under which a construction manager/general contractor is paid on the
basis of the actual cost to perform the work specified in the contract plus an amount for
overhead and profit for all preconstruction services.
new text end

new text begin Subd. 9. new text end

new text begin Project. new text end

new text begin "Project" means any project selected by the commissioner as a
construction manager/general contractor project under section 161.3208.
new text end

new text begin Subd. 10. new text end

new text begin Request for proposals; RFP. new text end

new text begin "Request for proposals" or "RFP" means
the document or publication soliciting proposals for a construction manager/general
contractor contract.
new text end

new text begin Subd. 11. new text end

new text begin Request for qualifications; RFQ. new text end

new text begin "Request for qualifications" or "RFQ"
means a document or publication used to prequalify and short-list potential construction
managers/general contractors.
new text end

new text begin Subd. 12. new text end

new text begin Work package. new text end

new text begin "Work package" means the scope of work for a defined
portion of a project. A defined portion includes construction services on any project
aspect, including procuring materials or services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires one year following the acceptance of ten construction manager/general
contractor contracts.
new text end

Sec. 6.

new text begin [161.3208] CONSTRUCTION MANAGER/GENERAL CONTRACTOR
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Selection authority; limitation. new text end

new text begin Notwithstanding sections 16C.25,
161.32, and 161.321, or any other law to the contrary, the commissioner may select a
construction manager/general contractor as provided in section 161.3209, and award a
construction manager/general contractor contract. The number of awarded contracts
shall not exceed four in any calendar year.
new text end

new text begin Subd. 2. new text end

new text begin Determination. new text end

new text begin Final determination to use a construction manager/general
contractor contracting procedure may be made only by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Cancellation. new text end

new text begin The solicitation of construction manager/general contractor
requests for qualifications or proposals does not obligate the commissioner to enter into a
construction manager/general contractor contract. The commissioner may accept or reject
any or all responses received as a result of the request. The solicitation of proposals may
be canceled at any time at the commissioner's sole discretion if cancellation is considered
to be in the state's best interest. If the commissioner rejects all responses or cancels the
solicitation for proposals, the commissioner may resolicit a request for proposals using the
same or different requirements.
new text end

new text begin Subd. 4. new text end

new text begin Reporting. new text end

new text begin The commissioner shall notify the chairs and ranking minority
members of the senate and house of representatives committees with jurisdiction over
transportation policy and transportation finance each time the commissioner decides to
use the construction manager/general contractor method of procurement and explain why
that method was chosen.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires one year following the acceptance of ten construction manager/general
contractor contracts.
new text end

Sec. 7.

new text begin [161.3209] CONSTRUCTION MANAGER/GENERAL CONTRACTOR;
PROCEDURES.
new text end

new text begin Subdivision 1. new text end

new text begin Solicitation of proposals. new text end

new text begin If the commissioner determines that
a construction manager/general contractor method of procurement is appropriate for
a project, the commissioner shall establish a two-phase procedure for awarding the
construction manager/general contractor contract, as described in subdivisions 2 and 3.
new text end

new text begin Subd. 2. new text end

new text begin Phase 1 - request for proposals. new text end

new text begin (a) The commissioner shall prepare
or have prepared an RFP for each construction manager/general contractor contract as
provided in this section. The RFP must contain, at a minimum, the following elements:
new text end

new text begin (1) the minimum qualifications of the construction manager/general contractor;
new text end

new text begin (2) the procedures for submitting proposals and the criteria for evaluation of
qualifications and the relative weight for each criteria;
new text end

new text begin (3) the form of the contract to be awarded;
new text end

new text begin (4) the scope of intended construction work;
new text end

new text begin (5) a listing of the types of preconstruction services that will be required;
new text end

new text begin (6) an anticipated schedule for commencing and completing the project;
new text end

new text begin (7) any applicable budget limits for the project;
new text end

new text begin (8) the requirements for insurance, statutorily required performance, and payment
bonds;
new text end

new text begin (9) the requirements that the construction manager/general contractor provide a
letter from a surety or insurance company stating that the construction manager/general
contractor is capable of obtaining a performance bond and payment bond covering the
estimated contract cost;
new text end

new text begin (10) the method for how construction manager/general contractor fees for the
preconstruction services contract will be negotiated;
new text end

new text begin (11) a statement that past performance or experience does not include the exercise
or assertion of a person's legal rights; and
new text end

new text begin (12) any other information desired by the commissioner.
new text end

new text begin (b) Before receiving any responses to the RFP:
new text end

new text begin (1) the commissioner shall appoint a technical review committee of at least five
individuals, of which one is a Department of Transportation manager who is also a
licensed professional engineer in Minnesota;
new text end

new text begin (2) the technical review committee shall evaluate the construction manager/general
contractor proposals according to criteria and subcriteria published in the RFP and
procedures established by the commissioner. The commissioner shall, as designated in
the RFP, evaluate construction manager/general contractor proposals on the basis of best
value as defined in section 16C.05, or using the qualifications-based selection process set
forth in section 16C.095, except that subdivision 1 of section 16C.095 shall not apply. If
the commissioner does not receive at least two proposals from construction managers,
the commissioner may:
new text end

new text begin (i) solicit new proposals;
new text end

new text begin (ii) revise the RFP and thereafter solicit new proposals using the revised RFP;
new text end

new text begin (iii) select another allowed procurement method; or
new text end

new text begin (iv) reject the proposals; and
new text end

new text begin (3) the technical review committee shall evaluate the responses to the request for
proposals and rank the construction manager/general contractor based on the predefined
criteria set forth in the RFP in accordance with paragraph (a), clause (2).
new text end

new text begin (c) Unless all proposals are rejected, the commissioner shall conduct contract
negotiations for a preconstruction services contract with the construction manager/general
contractor with the highest ranking. If the construction manager/general contractor with
the highest ranking declines or is unable to reach an agreement, the commissioner may
begin contract negotiations with the next highest ranked construction manager/general
contractor.
new text end

new text begin (d) Before issuing the RFP, the commissioner may elect to issue a request for
qualifications (RFQ) and short-list the most highly qualified construction managers/general
contractors. The RFQ must include the procedures for submitting statements of
qualification, the criteria for evaluation of qualifications, and the relative weight for each
criterion. The statements of qualifications must be evaluated by the technical review
committee.
new text end

new text begin Subd. 3. new text end

new text begin Phase 2 - construction manager/general contractor contract. new text end

new text begin (a) Before
conducting any construction-related services, the commissioner shall:
new text end

new text begin (1) conduct an independent cost estimate for the project or each work package; and
new text end

new text begin (2) conduct contract negotiations with the construction manager/general contractor
to develop a construction manager/general contractor contract. This contract must include
a minimum construction manager/general contractor self-performing requirement of 30
percent of the negotiated cost. Items designated in the construction manager/general
contractor contract as specialty items may be subcontracted and the cost of any specialty
item performed under the subcontract will be deducted from the cost before computing the
amount of work required to be performed by the contractor.
new text end

new text begin (b) If the construction manager/general contractor and the commissioner are unable
to negotiate a contract, the commissioner may use other contract procurement processes or
may readvertise the construction manager/general contractor contract. The construction
manager/general contractor may (1) bid or propose on the project if advertised under
section 161.32 or 161.3206 or (2) join a design-build team if advertised under sections
161.3410 to 161.3428.
new text end

new text begin (c) The commissioner shall provide to all bidders or design-build teams, all data
shared between the commissioner and the construction manager/general contractor during
the contract negotiations under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires one year following the acceptance of ten construction manager/general
contractor contracts.
new text end

Sec. 8.

Minnesota Statutes 2010, section 161.321, is amended to read:

161.321 SMALL BUSINESS CONTRACTS.

Subdivision 1.

Definitions.

For purposes of this section the following terms have
the meanings given them, except where the context clearly indicates a different meaning is
intended.

(a) "Award" means the granting of a contract in accordance with all applicable laws
and rules governing competitive bidding except as otherwise provided in this section.

(b) "Contract" means an agreement entered into between a business entity and the
state of Minnesota for the construction of transportation improvements.

(c) "Subcontractor" means a business entity which enters into a legally binding
agreement with another business entity which is a party to a contract as defined in
paragraph (b).

(d) "Targeted group business" means a business designated under section 16C.16,
subdivision 5.

(e) "Veteran-owned small business" means a business designated under section
16C.16, subdivision 6a.

Subd. 2.

Small business set-asides new text begin ; procurement and construction contract
preferences new text end .

(a) The commissioner may award up to a six percent preference in the
amount bid for specified construction work to small targeted group businesses and
veteran-owned small businesses.

(b) The commissioner may designate a contract for construction work for award only
to small targeted group businesses if the commissioner determines that at least three small
targeted group businesses are likely to bid. The commissioner may designate a contract for
construction work for award only to veteran-owned small businesses if the commissioner
determines that at least three veteran-owned small businesses are likely to bid.

(c) deleted text begin The commissioner, as a condition of awarding a construction contract, may
set goals that require the prime contractor to subcontract a portion of the contract to
small targeted group businesses and veteran-owned small businesses. The commissioner
must establish a procedure for granting waivers from the subcontracting requirement
when qualified small targeted group businesses and veteran-owned small businesses
are not reasonably available. The commissioner may establish financial incentives for
prime contractors who exceed the goals for use of subcontractors and financial penalties
for prime contractors who fail to meet goals under this paragraph. The subcontracting
requirements of this paragraph do not apply to prime contractors who are small targeted
group businesses or veteran-owned small businesses.
deleted text end

deleted text begin (d) deleted text end The commissioner may award up to a four percent preference in the amount
bid deleted text begin on procurement deleted text end new text begin for specified construction work new text end to small businesses located in an
economically disadvantaged area as defined in section 16C.16, subdivision 7.

new text begin Subd. 2a. new text end

new text begin Subcontracting goals. new text end

new text begin (a) The commissioner, as a condition of awarding
a construction contract, may set goals that require the prime contractor to subcontract
portions of the contract to small targeted group businesses and veteran-owned small
businesses. Prime contractors must demonstrate good faith efforts to meet the project
goals. The commissioner shall establish a procedure for granting waivers from the
subcontracting requirement when either qualified small targeted group businesses or
veteran-owned small businesses, or both, are not reasonably available. The commissioner
may establish (1) financial incentives for prime contractors who exceed the goals set for
the use of subcontractors under this subdivision and (2) sanctions for prime contractors
who fail to make good faith efforts to meet the goals set under this subdivision.
new text end

new text begin (b) The small targeted group business subcontracting requirements of this
subdivision do not apply to prime contractors who are small targeted group businesses.
The veteran-owned small business subcontracting requirements of this subdivision do not
apply to prime contractors who are veteran-owned small businesses.
new text end

Subd. 3.

new text begin Subcontract new text end awards to small businesses.

At least 75 percent of
subcontracts awarded to small targeted group businesses must be performed by the
business to which the subcontract is awarded or another small targeted group business.
At least 75 percent of subcontracts awarded to veteran-owned small businesses must be
performed by the business to which the subcontract is awarded or another veteran-owned
small business.

Subd. 4.

new text begin Contract new text end awards, limitations.

Contracts awarded pursuant to this
section are subject to all limitations contained in rules adopted by the commissioner
of administration.

new text begin Subd. 4a. new text end

new text begin Limited duration and reevaluation. new text end

new text begin The commissioner shall cooperate
with the commissioner of administration to periodically reevaluate the targeted group
businesses to determine that there is a statistical disparity between the percentage of
construction contracts awarded to businesses owned by targeted group members and the
representation of businesses owned by targeted group members among all businesses in
the state in the construction category. The commissioner of administration shall designate
targeted groups pursuant to section 16C.16, subdivision 5.
new text end

Subd. 5.

Recourse to other businesses.

If the commissioner is unable to award
a contract pursuant to the provisions of subdivisions 2 deleted text begin and 3 deleted text end new text begin to 4a new text end , the award may be
placed pursuant to the normal solicitation and award provisions set forth in this chapter
and chapter 16C.

Subd. 6.

Rules new text begin ; eligibility new text end .

new text begin (a) new text end The rules adopted by the commissioner of
administration to define small businesses and to set time and other eligibility requirements
for participation in programs under sections 16C.16 to 16C.19 apply to this section. The
commissioner may promulgate other rules necessary to carry out this section.

new text begin (b) In addition to other eligibility requirements, a small targeted group business or
veteran-owned small business is eligible for the bid preferences under this section only
for eight years following the later of: (1) the effective date of this act; or (2) the date of
initial designation as a small targeted group business or veteran-owned small business by
the commissioner of administration under section 16C.16.
new text end

Subd. 7.

Noncompetitive bids.

The commissioner is encouraged to purchase
from small targeted group businesses and veteran-owned small businesses designated
under section 16C.16 when making purchases that are not subject to competitive bidding
procedures.

Subd. 8.

deleted text begin Report by commissioner deleted text end new text begin Reporting new text end .

new text begin (a) new text end The commissioner deleted text begin of
transportation deleted text end shall report to the commissioner of administration on compliance with this
section. The information must be reported at the time and in the manner requested by the
commissioner new text begin of administration new text end .

new text begin (b) By February 1 of each even-numbered year, the commissioner shall submit a
report to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation policy and finance concerning contract awards under this
section. At a minimum, the report must include:
new text end

new text begin (1) a summary of the program;
new text end

new text begin (2) a review of the use of preferences for contracting, including frequency of
establishment of a preference and frequency of contract award to a small targeted group
business or veteran-owned small business;
new text end

new text begin (3) a review of goals and good faith efforts to use small targeted group businesses
and veteran-owned small businesses in subcontracts, including analysis of methods used
for, and effectiveness of, good faith efforts;
new text end

new text begin (4) a summary of any financial incentives or sanctions imposed;
new text end

new text begin (5) information on each reevaluation under subdivision 4a, including details on the
methodology for reevaluation; and
new text end

new text begin (6) any recommendations for legislative or programmatic changes.
new text end

Sec. 9.

Minnesota Statutes 2010, section 162.02, subdivision 2, is amended to read:

Subd. 2.

Rules; advisory committee.

(a) The rules shall be made and promulgated
by the commissioner acting with the advice of a committee selected by the several county
boards acting through the officers of the statewide association of county commissioners.
The committee shall be composed of nine members so selected that each member shall
be from a different state highway construction district. Not more than five of the nine
members of the committee shall be county commissioners. The remaining members shall
be county highway engineers. In the event that agreement cannot be reached on any rule,
the commissioner's determination shall be final. The rules shall be printed and copies
forwarded to the county engineers of the several counties. deleted text begin For the purposes of this section,
the expedited process for adopting rules established in section 14.389 may be used.
deleted text end

(b) Notwithstanding section 15.059, subdivision 5, the committee does not expire.

Sec. 10.

Minnesota Statutes 2010, section 162.02, subdivision 3, is amended to read:

Subd. 3.

Rules have force of law.

The rules deleted text begin shall deleted text end have the force and effect of law
deleted text begin upon compliance with the provisions of sections 14.05 to 14.28 deleted text end new text begin as provided in chapter 14 new text end .

Sec. 11.

Minnesota Statutes 2010, section 162.09, subdivision 2, is amended to read:

Subd. 2.

Rules; advisory committee.

(a) The rules shall be made and promulgated
by the commissioner acting with the advice of a committee selected by the governing
bodies of such cities, acting through the officers of the statewide association of municipal
officials. The committee shall be composed of 12 members, so selected that there shall be
one member from each state highway construction district and in addition one member
from each city of the first class. Not more than six members of the committee shall be
elected officials of the cities. The remaining members of the committee shall be city
engineers. In the event that agreement cannot be reached on any rule the commissioner's
determination shall be final. The rules shall be printed and copies forwarded to the clerks
and engineers of the cities. deleted text begin For the purposes of this section, the expedited process for
adopting rules established in section 14.389 may be used.
deleted text end

(b) Notwithstanding section 15.059, subdivision 5, the committee does not expire.

Sec. 12.

Minnesota Statutes 2010, section 162.09, subdivision 3, is amended to read:

Subd. 3.

Rules have force of law.

The rules deleted text begin shall deleted text end have the force and effect of law
deleted text begin upon compliance with the provisions of sections 14.05 to 14.28 deleted text end new text begin as provided in chapter 14 new text end .

Sec. 13.

Minnesota Statutes 2010, section 162.09, subdivision 4, is amended to read:

Subd. 4.

Federal census is conclusive.

(a) In determining whether any city has
a population of 5,000 or more, the last federal census shall be conclusive, except as
otherwise provided in this subdivision.

(b) The governing body of a city may contract with the United States Bureau of the
Census to take a special census. A certified copy of the results of the census shall be filed
with the appropriate state authorities by the city. The result of the census shall be the
population of the city for the purposes of any law providing that population is a required
qualification for distribution of highway aids under chapter 162. The special census shall
remain in effect until the next federal census is completed and filed. The expense of taking
the special census shall be paid by the city.

(c) If an entire area not heretofore incorporated as a city is incorporated as such
during the interval between federal censuses, its population shall be determined by its
incorporation census. The incorporation census shall be determinative of the population of
the city only until the next federal census.

(d) The population of a city created by the consolidation of two or more previously
incorporated cities shall be determined by the most recent population estimate of the
Metropolitan Council or state demographer, until the first federal decennial census or
special census taken after the consolidation.

(e) The population of a city that is not receiving a municipal state-aid street fund
apportionment shall be determined, upon request of the city, by the most recent population
estimate of the Metropolitan Council or state demographer. A municipal state-aid street
fund apportionment received by the city must be based on this population estimate until
the next federal decennial census or special census.

new text begin (f) A city that is found in the most recent federal decennial census to have fewer
than 5,000 population is deemed for the purposes of this chapter and the Minnesota
Constitution, article XIV, to have a population of 5,000 or more under the following
circumstances: (1) immediately before the most recent federal decennial census, the city
was receiving municipal state-aid street fund distributions; and (2) the population of
the city was found in the most recent federal decennial census to be fewer than 5,000.
Following the end of the first calendar year that ends in "4" after the decennial census and
until the next decennial census, the population of any city must be determined under
paragraphs (a) to (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 14.

Minnesota Statutes 2010, section 162.13, subdivision 1, is amended to read:

Subdivision 1.

Factors in formula.

After deducting for administrative costs and
for the disaster fund and research account as heretofore provided, and for any allocation
made under section 162.125, the remainder of the total sum provided for in subdivision 1
of section 162.12 shall be identified as the apportionment sum, and shall be apportioned
by the commissioner to the cities having a population of 5,000 or more, in accordance
with the following formula:

(1) An amount equal to 50 percent of such apportionment sum shall be apportioned
among the cities having a population of 5,000 or more so that each such city shall receive
of such amount the percentage that its money needs bears to the total money needs of
all such cities.

(2) An amount equal to 50 percent of such apportionment sum shall be apportioned
among the cities having a population of 5,000 or more so that each such city shall receive
of such amount the percentage that its population bears to the total population of all such
cities. new text begin For purposes of this subdivision, population of a city is the greater of 5,000 or the
number calculated under section 162.09, subdivision 4, paragraph (a), (b), (c), (d), or (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 15.

Minnesota Statutes 2010, section 162.155, is amended to read:

162.155 deleted text begin RULES FOR VARIANCES deleted text end new text begin RULEMAKING new text end .

new text begin (a) new text end The commissioner shall adopt rules deleted text begin , no later than January 1, 1980, in accordance
with sections 15.041 to 15.052, deleted text end setting forth the criteria to be considered by the
commissioner in evaluating requests for variances under sections 162.02, subdivision 3a
and 162.09, subdivision 3a. The rules deleted text begin shall deleted text end new text begin must new text end include, but are not limited to, economic,
engineering and safety guidelines.

new text begin (b) new text end The new text begin commissioner shall adopt rules establishing the new text end engineering standards
deleted text begin adopted pursuant to section deleted text end new text begin for cost estimation under sections new text end 162.07, subdivision 2,
deleted text begin or deleted text end new text begin and new text end 162.13, subdivision 2 deleted text begin , shall be adopted pursuant to the requirements of chapter
15 by July 1, 1980 deleted text end .

new text begin (c) The rules adopted by the commissioner under this section, and sections
162.02; 162.07, subdivision 2; 162.09; and 162.13, subdivision 2, are exempt from the
rulemaking provisions of chapter 14. The rules are subject to section 14.386, except that,
notwithstanding paragraph (b) of that section, the rules continue in effect until repealed or
superseded by other law or rule.
new text end

Sec. 16.

Minnesota Statutes 2010, section 168.10, subdivision 1a, is amended to read:

Subd. 1a.

Collector's vehicle, pioneer plate.

(a) Any motor vehicle new text begin that: (1) was new text end
manufactured prior to 1936 new text begin or is a restored pioneer vehicle, as defined in section 168A.01,
subdivision 16a; new text end and new text begin (2) is new text end owned and operated solely as a collector's item shall be listed
for taxation and registration deleted text begin as follows: deleted text end new text begin as provided by paragraph (b).
new text end

new text begin (b) new text end An affidavit shall be executed stating the name and address of the owner, the
name and address of the person from whom purchased, the make of the motor vehicle,
year and number of the model, the manufacturer's identification number and that the
vehicle is owned and operated solely as a collector's item and not for general transportation
purposes. If the commissioner is satisfied that the affidavit is true and correct and the
owner pays a $25 tax and the plate fee authorized under section 168.12, the commissioner
shall list such vehicle for taxation and registration and shall issue a single number plate.

deleted text begin (b) deleted text end new text begin (c) new text end The number plate so issued shall bear the inscription "Pioneer," "Minnesota"
and the registration number or other combination of characters authorized under section
168.12, subdivision 2a, but no date. The number plate is valid without renewal as long as
the vehicle is in existence in Minnesota. The commissioner has the power to revoke said
plate for failure to comply with this subdivision.

Sec. 17.

Minnesota Statutes 2010, section 168.27, subdivision 2, is amended to read:

Subd. 2.

New motor vehicle dealer.

(a) A new motor vehicle dealer licensee may
sell, broker, wholesale, or auction and solicit and advertise the sale, brokerage, wholesale,
or auction of new motor vehicles covered by the franchise and any used motor vehicles,
and may lease and solicit and advertise the lease of new motor vehicles and any used
motor vehicles. New motor vehicle dealer sales or leases may be either for consumer
use at retail or for resale to a dealer. A new motor vehicle dealer may engage in the
business of buying or otherwise acquiring vehicles for dismantling the vehicles and
selling used parts and remaining scrap materials under chapter 168A, except that a new
motor vehicle dealer may not purchase a junked vehicle from a salvage pool, insurance
company, or its agent unless the dealer is also licensed as a used vehicle parts dealer new text begin or
licensed as a scrap metal processor new text end . Nothing in this subdivision requires an applicant for
a dealer license who proposes to deal in: (1) new and unused motor vehicle bodies; or
(2) type A, B, or C motor homes as defined in section 168.002, subdivision 27, to have
a bona fide contract or franchise in effect with either the first-stage manufacturer of the
motor home or the manufacturer or distributor of any motor vehicle chassis upon which
the new and unused motor vehicle body is mounted. The modification or conversion
of a new van-type vehicle into a multipurpose passenger vehicle which is not a motor
home does not constitute dealing in new or unused motor vehicle bodies, and a person
engaged in the business of selling these van-type vehicles must have a bona fide contract
or franchise with the appropriate manufacturer under subdivision 10. A van converter
or modifier who owns these modified or converted van-type vehicles may sell them at
wholesale to new motor vehicle dealers having a bona fide contract or franchise with the
first-stage manufacturer of the vehicles.

(b) The requirements pertaining to franchises do not apply to persons who remodel
or convert motor vehicles for medical purposes. For purposes of this subdivision, "medical
purpose" means certification by a licensed physician that remodeling or conversion of a
motor vehicle is necessary to enable a disabled person to use the vehicle.

(c) A new motor vehicle dealer shall not deliver a manufacturer's or importer's
certificate of origin for a passenger automobile, pickup truck, or van requiring a certificate
of title according to chapter 168A to any person in conjunction with the sale of a vehicle
except to the department, another new motor vehicle dealer licensed to sell the same
line or make, or a person whose primary business is picking up and delivering motor
vehicle title documents.

(d) If a new motor vehicle dealer agrees to sell or lease a new motor vehicle using
the services of a motor vehicle broker, the new motor vehicle dealer may not refuse to
deliver possession of the vehicle to the buyer or lessee. This paragraph does not require
delivery unless all arrangements have been properly completed for payment, insurance
required by law, titling, transfer, and registration of the new vehicle and any trade-in
vehicle. Delivery may take place at or away from the dealership.

Sec. 18.

Minnesota Statutes 2010, section 168.27, subdivision 3, is amended to read:

Subd. 3.

Used motor vehicle dealer.

A used motor vehicle dealer licensee may sell,
lease, broker, wholesale, or auction and solicit and advertise the sale, lease, brokerage,
wholesale, or auction of any used motor vehicles for consumer use at retail or for resale to
a dealer. A used motor vehicle dealer may engage in the business of buying or otherwise
acquiring vehicles for dismantling the vehicles and selling used parts and remaining scrap
materials under chapter 168A, except that a used motor vehicle dealer may not acquire a
junked vehicle from a salvage pool, insurance company, or its agent, unless the dealer is
also licensed as a used vehicle parts dealer new text begin or licensed as a scrap metal processor new text end .

Sec. 19.

Minnesota Statutes 2010, section 168.27, subdivision 3c, is amended to read:

Subd. 3c.

Vehicle salvage pool.

A vehicle salvage pool licensee may store and
display and may solicit and advertise the storing and displaying, for sale, of damaged or
junked vehicles as an agent or escrow agent of an insurance company. A vehicle salvage
pool licensee shall not sell junked vehicles to any party other than a licensed used parts
dealer new text begin or a licensed scrap metal processor new text end .

Sec. 20.

Minnesota Statutes 2010, section 168A.01, subdivision 6a, is amended to read:

Subd. 6a.

High-value vehicle.

"High-value vehicle" means a vehicle deleted text begin manufactured
six or more years before the start of the current model year deleted text end that had an actual cash value in
excess of deleted text begin $5,000 deleted text end new text begin $9,000 new text end before being damaged, or a vehicle with a manufacturer's rating
of over 26,000 pounds gross vehicle weight new text begin that is not a late-model vehicle new text end .

Sec. 21.

Minnesota Statutes 2010, section 168A.01, subdivision 8a, is amended to read:

Subd. 8a.

Late-model vehicle.

"Late-model vehicle" means a vehicle deleted text begin manufactured
in the current model year or the five model years deleted text end new text begin with a manufacturer's designated model
year equal to or greater than the fifth calendar year new text end immediately preceding the current
deleted text begin model deleted text end new text begin calendar new text end year.

Sec. 22.

Minnesota Statutes 2010, section 168A.01, subdivision 12a, is amended to
read:

Subd. 12a.

Older model vehicle.

"Older model vehicle" means a vehicle
deleted text begin manufactured in the sixth model year immediately preceding the current model year or
earlier that is not a high-value vehicle deleted text end new text begin that is not a late-model vehicle new text end .

Sec. 23.

Minnesota Statutes 2010, section 168A.01, subdivision 16, is amended to read:

Subd. 16.

Reconstructed vehicle.

new text begin (a) new text end "Reconstructed vehicle" means a vehicle of a
type for which a certificate of title is required hereunder materially altered from its original
construction by the removal, addition, or substitution of essential parts, new or used.

new text begin (b) Reconstructed vehicle does not include a restored pioneer vehicle.
new text end

Sec. 24.

Minnesota Statutes 2010, section 168A.01, is amended by adding a
subdivision to read:

new text begin Subd. 16a. new text end

new text begin Restored pioneer vehicle. new text end

new text begin (a) "Restored pioneer vehicle" means
a vehicle:
new text end

new text begin (1) for which a certificate of title is required under this chapter;
new text end

new text begin (2) originally manufactured prior to 1919;
new text end

new text begin (3) for which one or more essential parts, whether new or used, are replaced; and
new text end

new text begin (4) for which each essential part under clause (3) is replaced:
new text end

new text begin (i) only as necessary in order to restore or retain the character and appearance of the
vehicle as originally manufactured;
new text end

new text begin (ii) in a manner which reasonably restores or retains the character and appearance of
the vehicle as originally manufactured; and
new text end

new text begin (iii) in a manner which substantially conforms to the fit, form, and function of the
original essential part.
new text end

new text begin (b) A vehicle meeting both the requirements under paragraph (a) and subdivision 16
for a reconstructed vehicle is a restored pioneer vehicle.
new text end

new text begin (c) For purposes of this subdivision, replacement of an essential part includes, but is
not limited to, removal, addition, modification, or substitution of the essential part.
new text end

Sec. 25.

Minnesota Statutes 2010, section 168A.04, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Specially constructed or reconstructed vehicle deleted text end new text begin Certain unconventional
vehicles; additional information; identifying number new text end .

new text begin (a) new text end Except as provided in
subdivision 6, if the application refers to a specially constructed vehicle deleted text begin or deleted text end new text begin , new text end a reconstructed
vehicle, new text begin or a restored pioneer vehicle, new text end the application shall so state and shall contain or
be accompanied by:

(1) any information and documents the department reasonably requires to establish
the ownership of the vehicle and the existence or nonexistence and priority of security
interests in it;

(2) the certificate of a person authorized by the department that the identifying
number of the vehicle has been inspected and found to conform to the description given in
the application, or any other proof of the identity of the vehicle the department reasonably
requires; and

(3) at the time of application, a written certification to the department that the vehicle
to be titled meets the requirements of chapter 169 for vehicles in its class regarding safety
and acceptability to operate on public roads and highways.

new text begin (b) As part of the application for certificate of title on a restored pioneer vehicle, the
applicant shall supply evidence of the manufacturer's year, make, model, and identifying
number of the vehicle. A manufacturer's identifying number is valid under this paragraph
if it matches a number permanently affixed, stamped, or otherwise assigned to at least one
essential part of the motor vehicle, including but not limited to the engine block or the
vehicle body. In the case of an insufficient application, the commissioner may require
additional documentation, including, but not limited to, photographic proof, copies of
original vehicle catalogs, or certification letters from antique car collector organizations to
confirm the manufacturer's identifying number on the vehicle.
new text end

Sec. 26.

Minnesota Statutes 2010, section 168A.05, subdivision 3, is amended to read:

Subd. 3.

Content of certificate.

new text begin (a) new text end Each certificate of title issued by the department
shall contain:

(1) the date issued;

(2) the first, middle, and last names and the dates of birth of all owners who are
natural persons, and the full names of all other owners;

(3) the residence address of the owner listed first if that owner is a natural person or
the address if that owner is not a natural person;

(4) the names of any secured parties, and the address of the first secured party,
listed in the order of priority (i) as shown on the application, or (ii) if the application is
based on a certificate of title, as shown on the certificate, or (iii) as otherwise determined
by the department;

(5) any liens filed pursuant to a court order or by a public agency responsible for
child support enforcement against the owner;

(6) the title number assigned to the vehicle;

(7) a description of the vehicle including, so far as the following data exists, its
make, model, year, identifying number, type of body, whether new or used, and if a new
vehicle, the date of the first sale of the vehicle for use;

(8) with respect to a motor vehicle subject to section 325E.15, (i) the true cumulative
mileage registered on the odometer or (ii) that the actual mileage is unknown if the
odometer reading is known by the owner to be different from the true mileage;

(9) with respect to a vehicle subject to sections 325F.6641 and 325F.6642, the
appropriate term "flood damaged," "rebuilt," "prior salvage," or "reconstructed";

(10) with respect to a vehicle contaminated by methamphetamine production, if the
registrar has received the certificate of title and notice described in section 152.0275,
subdivision 2, paragraph (g), the term "hazardous waste contaminated vehicle";

(11) with respect to a vehicle subject to section 325F.665, the term "lemon law
vehicle"; and

(12) any other data the department prescribes.

new text begin (b) For a certificate of title on a vehicle that is a restored pioneer vehicle:
new text end

new text begin (1) the identifying number must be the valid identifying number as provided under
section 168A.04, subdivision 5;
new text end

new text begin (2) the year of the vehicle must be the year of original vehicle manufacture and
not the year of restoration; and
new text end

new text begin (3) the title must not bear a "reconstructed vehicle" brand.
new text end

Sec. 27.

Minnesota Statutes 2010, section 168A.09, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Restored pioneer vehicle; replacement title. new text end

new text begin (a) The owner of a vehicle
may apply to the commissioner for a replacement title if:
new text end

new text begin (1) a Minnesota title has been issued prior to the effective date of this section; and
new text end

new text begin (2) the vehicle meets the requirements for a restored pioneer vehicle under section
168A.01, subdivision 16a.
new text end

new text begin (b) The commissioner shall establish and make publicly available requirements for
an application under this subdivision, and shall make reasonable efforts to minimize
burden on the title applicant. Among the application requirements, a person applying for a
replacement title shall surrender the original title.
new text end

new text begin (c) The commissioner shall impose a fee for a replacement title issued under this
subdivision that is equal to the fee for issuing a duplicate certificate of title under section
168A.29. Fee proceeds must be allocated in the same manner as the fee for a duplicate
certificate of title.
new text end

Sec. 28.

Minnesota Statutes 2010, section 168A.15, subdivision 2, is amended to read:

Subd. 2.

new text begin Certain unconventional vehicles; new text end requirements to obtain certificate deleted text begin for
reconstructed vehicle deleted text end .

If a vehicle is altered so as to become a reconstructed vehicle new text begin or
restored pioneer vehicle new text end , the owner shall apply for a certificate of title deleted text begin to the reconstructed
vehicle deleted text end in the manner provided in section 168A.04, and any existing certificate of title to
the vehicle shall be surrendered for cancellation.

Sec. 29.

Minnesota Statutes 2010, section 168A.151, subdivision 1, is amended to read:

Subdivision 1.

Salvage titles.

(a) When an insurer, licensed to conduct business in
Minnesota, acquires ownership of a late-model or high-value vehicle through payment
of damages, the insurer shall immediately apply for a salvage certificate of title or shall
stamp the existing certificate of title with the legend "SALVAGE CERTIFICATE OF
TITLE" in a manner prescribed by the department. Within deleted text begin 48 hours of taking possession deleted text end new text begin
ten days of obtaining the title new text end of a vehicle through payment of damages, an insurer must
notify the department in a manner prescribed by the department.

(b) A person shall immediately apply for a salvage certificate of title if the person
acquires a damaged late-model or high-value deleted text begin motor deleted text end vehicle with an out-of-state title
and the vehicle:

(1) is a vehicle that was acquired by an insurer through payment of damages;

(2) is a vehicle for which the cost of repairs exceeds the value of the damaged
vehicle; or

(3) has an out-of-state salvage certificate of title as proof of ownership.

(c) A self-insured owner of a late-model or high-value vehicle deleted text begin who deleted text end new text begin that new text end sustains
damage by collision or other occurrence which exceeds deleted text begin 70 deleted text end new text begin 80 new text end percent of its actual cash
value shall immediately apply for a salvage certificate of title. deleted text begin Damage, for the purpose of
this calculation, does not include the actual cost incurred to repair, replace, or reinstall
inflatable safety restraints and other vehicle components that must be replaced due to the
deployment of the inflatable safety restraints.
deleted text end

Sec. 30.

Minnesota Statutes 2010, section 168A.151, subdivision 6, is amended to read:

Subd. 6.

Authority under junking certificate.

A junking certificate authorizes the
holder only to possess and transport the vehicle, except that a salvage pool or insurance
company, or its agent, may sell an unrepairable total loss vehicle with a junking certificate
to a licensed used parts dealer new text begin or a licensed scrap metal processor new text end .

Sec. 31.

Minnesota Statutes 2010, section 169.06, subdivision 4, is amended to read:

Subd. 4.

Obedience to traffic-control signal or flagger; presumptions.

(a) The
driver of any vehicle shall obey the instructions of any official traffic-control device
applicable thereto placed in accordance with the provisions of this chapter, unless
otherwise directed by a police officer or by a deleted text begin certified overdimensional load escort driver deleted text end new text begin
flagger authorized under this subdivision new text end , subject to the exceptions granted the driver of
an authorized emergency vehicle in this chapter.

(b) No provision of this chapter for which official traffic-control devices are required
shall be enforced against an alleged violator if at the time and place of the alleged
violation an official device is not in proper position and sufficiently legible to be seen by
an ordinarily observant person. Whenever a particular section does not state that official
traffic-control devices are required, such section shall be effective even though no devices
are erected or in place.

(c) Whenever official traffic-control devices are placed in position approximately
conforming to the requirements of this chapter, such devices shall be presumed to have
been so placed by the official act or direction of lawful authority, unless the contrary
shall be established by competent evidence.

(d) Any official traffic-control device placed pursuant to the provisions of this
chapter and purporting to conform to the lawful requirements pertaining to such devices
shall be presumed to comply with the requirements of this chapter, unless the contrary
shall be established by competent evidence.

(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place
until it is safe for the vehicles to proceed. A person operating a motor vehicle that has
been stopped by a flagger in a designated work zone may proceed after stopping only on
instruction by the flagger.

(f) An overdimensional load escort driver with a certificate issued under section
299D.085, while acting as a flagger escorting a legal overdimensional load, may stop
vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person
operating a motor vehicle that has been stopped by an escort driver acting as a flagger may
proceed only on instruction by the flagger or a police officer.

new text begin (g) A person may stop and hold vehicles in place until it is safe for the vehicles
to proceed, if the person: (1) holds a motorcycle road guard certificate issued under
section 171.60; (2) meets the safety and equipment standards for operating under the
certificate; and (3) is acting as a flagger escorting a motorcycle group ride. A flagger
operating as provided under this paragraph may direct operators of motorcycles within a
motorcycle group ride or other vehicle traffic, notwithstanding any contrary indication of a
traffic-control device, including stop signs or traffic-control signals. A person operating
a vehicle that has been stopped by a flagger under this paragraph may proceed only on
instruction by the flagger or a police officer.
new text end

new text begin (h) A person representing a motorcycle group ride in any city of the first class may
no later than seven days before the ride request of the city's police chief that traffic and
traffic signals be controlled or modified to allow the ride to proceed through a specified
route at a specified time without stopping. The police chief shall no later than three days
before the ride notify the organizer as to whether the city will control traffic as requested
at no cost to the organizer. If the city chooses not to control traffic as requested at no cost
to the organizer, traffic may be controlled by persons authorized under paragraph (g)
within the limits of that authority.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective one year after publication in the State
Register of rules adopted under section 171.60, subdivision 5.
new text end

Sec. 32.

Minnesota Statutes 2010, section 169.09, subdivision 13, is amended to read:

Subd. 13.

Reports confidential; evidence, fee, penalty, appropriation.

(a) All
reports and supplemental information required under this section must be for the use of the
commissioner of public safety and other appropriate state, federal, county, and municipal
governmental agencies for accident analysis purposes, except:

(1) the commissioner of public safety or any law enforcement agency shall, upon
written request of any individual involved in an accident or upon written request of the
representative of the individual's estate, surviving spouse, or one or more surviving next
of kin, or a trustee appointed under section 573.02, or other person injured in person,
property, or means of support, or who incurs other pecuniary loss by virtue of the accident,
disclose to the requester, the requester's legal counsel, or a representative of the requester's
insurer the report required under subdivision 8;

(2) the commissioner of public safety shall, upon written request, provide the driver
filing a report under subdivision 7 with a copy of the report filed by the driver;

(3) the commissioner of public safety may verify with insurance companies vehicle
insurance information to enforce sections 65B.48, 169.792, 169.793, 169.796, and
169.797;

(4) the commissioner of public safety shall provide the commissioner of
transportation the information obtained for each traffic accident involving a commercial
motor vehicle, for purposes of administering commercial vehicle safety regulations; deleted text begin and
deleted text end

new text begin (5) upon request, the commissioner of public safety shall provide the commissioner
of transportation the information obtained for each traffic accident involving damage
to state-owned infrastructure, for purposes of debt collection under section 161.20,
subdivision 4; and
new text end

deleted text begin (5) deleted text end new text begin (6) new text end the commissioner of public safety may give to the United States Department
of Transportation commercial vehicle accident information in connection with federal
grant programs relating to safety.

(b) Accident reports and data contained in the reports are not discoverable under any
provision of law or rule of court. No report shall be used as evidence in any trial, civil or
criminal, or any action for damages or criminal proceedings arising out of an accident.
However, the commissioner of public safety shall furnish, upon the demand of any person
who has or claims to have made a report or upon demand of any court, a certificate
showing that a specified accident report has or has not been made to the commissioner
solely to prove compliance or failure to comply with the requirements that the report be
made to the commissioner.

(c) Nothing in this subdivision prevents any individual who has made a report under
this section from providing information to any individuals involved in an accident or their
representatives or from testifying in any trial, civil or criminal, arising out of an accident,
as to facts within the individual's knowledge. It is intended by this subdivision to render
privileged the reports required, but it is not intended to prohibit proof of the facts to
which the reports relate.

(d) Disclosing any information contained in any accident report, except as provided
in this subdivision, section 13.82, subdivision 3 or 6, or other statutes, is a misdemeanor.

(e) The commissioner of public safety shall charge authorized persons as described
in paragraph (a) a $5 fee for a copy of an accident report. Ninety percent of the $5 fee
collected under this paragraph must be deposited in the special revenue fund and credited
to the driver services operating account established in section 299A.705 and ten percent
must be deposited in the general fund. The commissioner may also furnish an electronic
copy of the database of accident records, which must not contain personal or private data
on an individual, to private agencies as provided in paragraph (g), for not less than the cost
of preparing the copies on a bulk basis as provided in section 13.03, subdivision 3.

(f) The fees specified in paragraph (e) notwithstanding, the commissioner and law
enforcement agencies shall charge commercial users who request access to response or
incident data relating to accidents a fee not to exceed 50 cents per record. "Commercial
user" is a user who in one location requests access to data in more than five accident
reports per month, unless the user establishes that access is not for a commercial purpose.
Of the money collected by the commissioner under this paragraph, 90 percent must be
deposited in the special revenue fund and credited to the driver services operating account
established in section 299A.705 and ten percent must be deposited in the general fund.

(g) The fees in paragraphs (e) and (f) notwithstanding, the commissioner shall
provide an electronic copy of the accident records database to the public on a case-by-case
basis using the cost-recovery charges provided for under section 13.03, subdivision
3. The database provided must not contain personal or private data on an individual.
However, unless the accident records database includes the vehicle identification number,
the commissioner shall include the vehicle registration plate number if a private agency
certifies and agrees that the agency:

(1) is in the business of collecting accident and damage information on vehicles;

(2) will use the vehicle registration plate number only for identifying vehicles that
have been involved in accidents or damaged, to provide this information to persons
seeking access to a vehicle's history and not for identifying individuals or for any other
purpose; and

(3) will be subject to the penalties and remedies under sections 13.08 and 13.09.

Sec. 33.

Minnesota Statutes 2010, section 169.222, subdivision 6, is amended to read:

Subd. 6.

Bicycle equipment.

(a) No person shall operate a bicycle at nighttime
unless the bicycle or its operator is equipped with a lamp which shall emit a white light
visible from a distance of at least 500 feet to the front and with a red reflector of a type
approved by the Department of Public Safety which is visible from all distances from 100
feet to 600 feet to the rear when directly in front of lawful lower beams of headlamps on a
motor vehicle. No person may operate a bicycle at any time when there is not sufficient
light to render persons and vehicles on the highway clearly discernible at a distance of 500
feet ahead unless the bicycle or its operator is equipped with reflective surfaces that shall
be visible during the hours of darkness from 600 feet when viewed in front of lawful lower
beams of headlamps on a motor vehicle. The reflective surfaces shall include reflective
materials on each side of each pedal to indicate their presence from the front or the rear
and with a minimum of 20 square inches of reflective material on each side of the bicycle
or its operator. Any bicycle equipped with side reflectors as required by regulations for
new bicycles prescribed by the United States Consumer Product Safety Commission
shall be considered to meet the requirements for side reflectorization contained in this
subdivision. A bicycle may be equipped with a new text begin front lamp that emits a white flashing
signal or a new text end rear lamp that emits a red flashing signal.

(b) new text begin Bicycle tires may be equipped with studs or other protuberances designed
to increase traction.
new text end

new text begin (c) new text end No person shall operate a bicycle unless it is equipped with a brake which will
enable the operator to make the braked wheels skid on dry, level, clean pavement.

deleted text begin (c) deleted text end new text begin (d) new text end No person shall operate upon a highway any bicycle equipped with handlebars
so raised that the operator must elevate the hands above the level of the shoulders in
order to grasp the normal steering grip area.

deleted text begin (d) deleted text end new text begin (e) new text end No person shall operate upon a highway any bicycle which is of such a size
as to prevent the operator from stopping the bicycle, supporting it with at least one foot
on the highway surface and restarting in a safe manner.

Sec. 34.

Minnesota Statutes 2010, section 169.4501, subdivision 1, is amended to read:

Subdivision 1.

National standards adopted.

Except as provided in sections
169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C,
D school buses and multifunction school activity buses used for the transportation of
school children shall meet the requirements of the deleted text begin "bus chassis standards" and deleted text end "bus body
deleted text begin standards deleted text end new text begin and chassis specifications new text end " in the deleted text begin 2005 deleted text end new text begin 2010 new text end edition of the "National School
Transportation Specifications and Procedures" adopted by the National Congress on
School Transportation. Except as provided in section 169.4504, the construction, design,
and equipment of types A, B, C, D school buses and multifunction school activity buses
used for the transportation of students with disabilities also shall meet the requirements of
the "specially equipped school bus deleted text begin standards deleted text end new text begin specifications new text end " in the deleted text begin 2005 deleted text end new text begin 2010 new text end National
School Transportation Specifications and Procedures. The deleted text begin "bus chassis standards," deleted text end "bus
body deleted text begin standards, deleted text end new text begin and chassis specifications new text end " and "specially equipped school bus deleted text begin standards deleted text end new text begin
specifications new text end " sections of the deleted text begin 2005 deleted text end new text begin 2010 new text end edition of the "National School Transportation
Specifications and Procedures new text begin , new text end " new text begin adopted by the Fifteenth National Congress on School
Transportation, new text end are incorporated by reference in this chapter.

Sec. 35.

Minnesota Statutes 2010, section 169.4501, subdivision 2, is amended to read:

Subd. 2.

Applicability.

(a) The standards adopted in this section and sections
169.4502 and 169.4503, govern the construction, design, equipment, and color of school
buses used for the transportation of school children, when owned or leased and operated
by a school or privately owned or leased and operated under a contract with a school.
Each school, its officers and employees, and each person employed under the contract is
subject to these standards.

(b) The standards apply to school buses manufactured after December 31, deleted text begin 2007 deleted text end new text begin
2012 new text end . Buses complying with the standards when manufactured need not comply with
standards established later except as specifically provided for by law.

(c) A school bus manufactured on or before December 31, deleted text begin 2007 deleted text end new text begin 2012 new text end , must conform
to the Minnesota standards in effect on the date the vehicle was manufactured except as
specifically provided for in law.

(d) A new bus body may be remounted on a used chassis provided that the remounted
vehicle meets state and federal standards for new buses which are current at the time of the
remounting. Permission must be obtained from the commissioner of public safety before
the remounting is done. A used bus body may not be remounted on a new or used chassis.

Sec. 36.

Minnesota Statutes 2010, section 169.4503, subdivision 5, is amended to read:

Subd. 5.

Colors.

Fenderettes may be black. The beltline may be painted yellow
over black or black over yellow. The rub rails shall be black. new text begin The area around the lenses
of alternately flashing signal lamps extending outward from the edge of the lamp three
inches, plus or minus one-quarter inch, to the sides and top and at least one inch to the
bottom, shall be black. Visors or hoods, black in color, with a minimum of four inches
may be provided.
new text end

Sec. 37.

Minnesota Statutes 2010, section 169.4503, subdivision 20, is amended to
read:

Subd. 20.

Seat and crash barriers.

deleted text begin (a) deleted text end All restraining barriers and passenger seats
shall be covered with a material that has fire retardant or fire block characteristics.

deleted text begin (b) All seats must have a minimum cushion depth of 15 inches and a seat back
height of at least 20 inches above the seating reference point, and beginning October 21,
2009, must also conform to the Federal Motor Vehicle Safety Standard in Code of Federal
Regulations, title 49, section 571.222.
deleted text end

Sec. 38.

Minnesota Statutes 2010, section 169.4503, is amended by adding a
subdivision to read:

new text begin Subd. 28. new text end

new text begin Auxiliary fans. new text end

new text begin Additional auxiliary fans are required for school buses
manufactured on or after December 31, 2012, and shall meet the following requirements:
new text end

new text begin (1) fans for the left and right sides of the windshields shall be placed in a location
where they can be adjusted for maximum effectiveness and where they do not obstruct
vision to any mirror. Type A buses may be equipped with one fan;
new text end

new text begin (2) fans shall be a minimum of six inches in diameter;
new text end

new text begin (3) fan blades shall be covered with a protective cage; and
new text end

new text begin (4) each fan shall be controlled by a separate switch.
new text end

Sec. 39.

Minnesota Statutes 2010, section 169.4503, is amended by adding a
subdivision to read:

new text begin Subd. 29. new text end

new text begin Video/mobile surveillance systems. new text end

new text begin Camera heads for video/mobile
surveillance may be mounted in the driver compartment area, mid-bus, or on a rear interior
bulkhead in the student passenger area. For buses manufactured or retrofitted with a
surveillance system after December 31, 2012, cameras mounted mid-bus must be parallel
to a seat back, must not have any sharp edges, must not extend outward more than three
inches, and must be located within 24 inches of the top of the side window of the bus.
new text end

Sec. 40.

Minnesota Statutes 2010, section 169.4582, subdivision 2, is amended to read:

Subd. 2.

Duty to report; school official.

Consistent with the school bus safety
policy under section 123B.91, subdivision 1, the school principal, the school transportation
safety director, or other designated school official shall immediately report to the local
law enforcement agency having jurisdiction where the misbehavior occurred and to the
school superintendent if the reporting school official knows or has reason to believe that
a student has committed a reportable offense on a school bus or in a bus loading or
unloading area. The reporting school official shall issue a report to the commissioner of
public safety concerning the incident deleted text begin on a form developed by the commissioner for that
purpose deleted text end new text begin upon request of the commissioner new text end .

Sec. 41.

Minnesota Statutes 2010, section 169.79, subdivision 6, is amended to read:

Subd. 6.

Other motor vehicles.

If the motor vehicle is any kind of motor vehicle
other than those provided for in subdivisions 2 to 4, deleted text begin one plate deleted text end new text begin two plates new text end must be displayed
deleted text begin on deleted text end new text begin . One plate must be displayed at new text end the front deleted text begin and one on the rear deleted text end of the vehicle new text begin and one
at the back. The two plates must either be mounted on the front and rear bumpers of
the vehicle or on the front and back of the vehicle exterior in places designed to hold a
license plate new text end .

Sec. 42.

Minnesota Statutes 2011 Supplement, section 169.86, subdivision 5, is
amended to read:

Subd. 5.

Fees; proceeds deposited; appropriation.

The commissioner, with
respect to highways under the commissioner's jurisdiction, may charge a fee for each
permit issued. new text begin Unless otherwise specified, new text end all such fees for permits issued by the
commissioner of transportation shall be deposited in the state treasury and credited to
the trunk highway fund. Except for those annual permits for which the permit fees are
specified elsewhere in this chapter, the fees shall be:

(a) $15 for each single trip permit.

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

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

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

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

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

(4) special pulpwood vehicles described in section 169.863;

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

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

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

(8) special milk-hauling vehicles authorized under section 169.867.

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

(1) mobile cranes;

(2) construction equipment, machinery, and supplies;

(3) manufactured homes and manufactured storage buildings;

(4) implements of husbandry;

(5) double-deck buses;

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

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

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

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

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

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

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

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

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

If the gross weight of the vehicle is more than 145,000 pounds the permit fee is determined
under paragraph (e).

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

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

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

deleted text begin (1) in fiscal years 2005 through 2010:
deleted text end

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

deleted text begin (ii) deleted text end new text begin (2) new text end all remaining money in each fiscal year must be deposited in deleted text begin a deleted text end new text begin the new text end bridge
inspection and signing account deleted text begin in the special revenue fund deleted text end new text begin as provided under subdivision
5a new text end . deleted text begin Money in the account is appropriated to the commissioner for:
deleted text end

deleted text begin (A) inspection of local bridges and identification of local bridges to be posted,
including contracting with a consultant for some or all of these functions; and
deleted text end

deleted text begin (B) erection of weight-posting signs on local bridges; and
deleted text end

deleted text begin (2) in fiscal year 2011 and subsequent years must be deposited in the trunk highway
fund.
deleted text end

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

Sec. 43.

Minnesota Statutes 2010, section 169.86, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Bridge inspection and signing account; appropriation. new text end

new text begin (a) A bridge
inspection and signing account is established in the special revenue fund. The account
consists of fees for special permits as specified under this chapter, and any other money
donated, allotted, transferred, or otherwise provided to the account.
new text end

new text begin (b) The revenue in the bridge inspection and signing account under this subdivision
is annually appropriated to the commissioner for:
new text end

new text begin (1) inspection of local bridges and identification of local bridges to be posted,
including contracting with a consultant for some or all of these functions; and
new text end

new text begin (2) erection of weight-posting signs on local bridges.
new text end

Sec. 44.

Minnesota Statutes 2010, section 169.865, subdivision 4, is amended to read:

Subd. 4.

Deposit of revenues deleted text begin ; appropriation deleted text end .

deleted text begin (a) deleted text end Revenue from the permits issued
by the commissioner under this section must be deposited deleted text begin :
deleted text end

deleted text begin (1) in fiscal years 2008 through 2011, deleted text end in the bridge inspection and signing account
deleted text begin in the special revenue fund; and
deleted text end

deleted text begin (2) in fiscal year 2012 and subsequent years, in the trunk highway fund deleted text end new text begin as provided
under section 169.86, subdivision 5a new text end .

deleted text begin (b) The revenue in the bridge inspection and signing account under this section is
annually appropriated to the commissioner for:
deleted text end

deleted text begin (1) inspection of local bridges and identification of local bridges to be posted,
including contracting with a consultant for some or all of these functions; and
deleted text end

deleted text begin (2) erection of weight-posting signs on local bridges.
deleted text end

Sec. 45.

Minnesota Statutes 2010, section 169.98, subdivision 1, is amended to read:

Subdivision 1.

Colors and markings.

(a) Except as provided in subdivisions 2 and
2a, all motor vehicles which are primarily used in the enforcement of highway traffic rules
by the State Patrol or for general uniform patrol assignment by any municipal police
department or other law enforcement agency, except conservation officers, shall have
uniform colors and markings as provided in this subdivision. Motor vehicles of:

(1) municipal police departments, including the University of Minnesota Police
Department and park police units, shall be predominantly blue, brown, green, black,
or white;

(2) the State Patrol shall be predominantly maroon; and

(3) the county sheriff's office shall be predominantly brown new text begin , black, gold, new text end or white.

(b) The identity of the governmental unit operating the vehicle shall be displayed on
both front door panels and on the rear of the vehicle. The identity may be in the form of
a shield or emblem, or may be the word "police," "sheriff," or the words "State Patrol"
or "conservation officer," as appropriate, with letters not less than 2-1/2 inches high,
one-inch wide and of a three-eighths inch brush stroke. The identity shall be of a color
contrasting with the background color so that the motor vehicle is easily identifiable as
belonging to a specific type of law enforcement agency. Each vehicle shall be marked
with its own identifying number on the rear of the vehicle. The number shall be printed
in the same size and color required pursuant to this subdivision for identifying words
which may be displayed on the vehicle.

Sec. 46.

Minnesota Statutes 2010, section 169.98, subdivision 3, is amended to read:

Subd. 3.

Security guard vehicle.

(a) All motor vehicles which are used by security
guards in the course of their employment may have any color other than those specified in
subdivision 1 for law enforcement vehicles. The identity of the security service shall be
displayed on the motor vehicle as required for law enforcement vehicles.

(b) Notwithstanding subdivision 1, paragraph (a), clause (1), a security guard may
continue to use a motor vehicle that is predominantly black in the course of the guard's
employment if the vehicle was being used in this manner before August 1, 2002.

new text begin (c) Notwithstanding subdivision 1, paragraph (a), clause (3), a security guard may
continue to use a motor vehicle that is predominantly gold in the course of the guard's
employment if the vehicle was being used in this manner before August 1, 2012.
new text end

Sec. 47.

new text begin [171.60] MOTORCYCLE ROAD GUARD CERTIFICATE.
new text end

new text begin Subdivision 1. new text end

new text begin Certificate required. new text end

new text begin No person may perform traffic control as a
motorcycle road guard as provided under chapter 169 without a valid motorcycle road
guard certificate issued by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Certification qualifications and standards; fee. new text end

new text begin Through the Minnesota
Motorcycle Safety Center, the commissioner of public safety shall:
new text end

new text begin (1) establish qualifications and requirements for a person to obtain a motorcycle road
guard certificate under this section, which must include:
new text end

new text begin (i) a minimum 18 years of age;
new text end

new text begin (ii) possession of a valid driver's license; and
new text end

new text begin (iii) successful completion of a motorcycle road guard certification course;
new text end

new text begin (2) develop and offer, whether by the Minnesota Motorcycle Safety Center or
authorized agents, a motorcycle road guard certification course; and
new text end

new text begin (3) establish safety and equipment standards for a person who operates under a
motorcycle road guard certificate, including but not limited to specifying requirements
for a reflective safety vest.
new text end

new text begin Subd. 3. new text end

new text begin Fee. new text end

new text begin The commissioner of public safety shall assess a fee for each applicant
for a motorcycle road guard certificate, calculated to cover the commissioner's cost of
establishing and administering the program.
new text end

new text begin Subd. 4. new text end

new text begin Penalty. new text end

new text begin A person who violates any provision of this section is guilty
of a petty misdemeanor.
new text end

new text begin Subd. 5. new text end

new text begin Rulemaking. new text end

new text begin The commissioner of public safety shall adopt rules to carry
out the provisions of this section. Notwithstanding section 16A.1283, the rules must
specify the fee to be assessed under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivisions 1 to 4 are effective one year after publication
in the State Register of rules adopted under subdivision 5. Subdivision 5 is effective the
day following final enactment.
new text end

Sec. 48.

Minnesota Statutes 2010, section 174.03, is amended by adding a subdivision
to read:

new text begin Subd. 1d. new text end

new text begin Statewide freight plan. new text end

new text begin (a) The commissioner of transportation, in
cooperation with the commissioner of the Department of Employment and Economic
Development, shall conduct a freight rail economic development study. The study will
assess the economic impact of freight railroads in the state and identify opportunities to
expand business development and enhance economic competitiveness through improved
utilization of freight rail options. Findings from the study shall be incorporated as an
amendment to the statewide freight and passenger rail plan.
new text end

new text begin (b) The commissioner of transportation shall provide an interim progress report on
the study by January 15, 2013, and a final report on September 1, 2013, to the chairs
and ranking minority members of the legislative committees with jurisdiction over
transportation policy and finance and over employment and economic development. The
reports shall include any recommended legislative initiatives.
new text end

new text begin (c) The commissioner of transportation may expend up to $216,000 in fiscal year
2013 under section 222.50, subdivision 7, to pay the costs of this study and report.
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. 49.

new text begin [174.40] SAFE ROUTES TO SCHOOL PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Bond eligible cost" means expenditures under this section for acquisition of
land or permanent easements, predesign, design, preliminary and final engineering,
environmental analysis, construction, and reconstruction of publicly owned infrastructure
in this state with a useful life of at least ten years that provides for nonmotorized
transportation to and from a school; preparation of land for which a route to school
is established, including demolition of structures and remediation of any hazardous
conditions on the land; and the unpaid principal on debt issued by a political subdivision
for a safe routes to school project.
new text end

new text begin (c) "Federal program" means the safe routes to school program under Title I, section
1404 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy
for Users (SAFETEA-LU) of 2005, Public Law 109-59.
new text end

new text begin (d) "School" means a school, as defined in section 120A.22, subdivision 4, excluding
a home school.
new text end

new text begin Subd. 2. new text end

new text begin Program creation. new text end

new text begin (a) A safe routes to school program is established
to provide assistance in capital investments for safe and appealing nonmotorized
transportation to and from a school. The commissioner shall develop and implement the
safe routes to school program as provided in this section. Financial assistance under
this section is to supplement or replace aid for infrastructure projects under the federal
program.
new text end

new text begin (b) The commissioner may provide grants or other financial assistance for a safe
routes to school project at the commissioner's discretion, subject to the requirements
of this section.
new text end

new text begin Subd. 3. new text end

new text begin Safe routes to school accounts. new text end

new text begin (a) A safe routes to school account is
established in the bond proceeds fund. The account consists of state bond proceeds
appropriated to the commissioner. Money in the account may only be expended on
bond-eligible costs of a project receiving financial assistance as provided under this
section. All uses of funds from the account must be for publicly owned property.
new text end

new text begin (b) A safe routes to school account is established in the general fund. The account
consists of funds as provided by law, and any other money donated, allotted, transferred,
or otherwise provided to the account. Money in the account may only be expended on a
project receiving financial assistance as provided under this section.
new text end

new text begin Subd. 4. new text end

new text begin State general obligation bond funds. new text end

new text begin Minnesota Constitution, article XI,
section 5, clause (a), requires that state general obligation bonds be issued to finance only
the acquisition or betterment of public land, buildings, and other public improvements
of a capital nature. The legislature has determined that many school transportation
infrastructure projects will constitute betterments and capital improvements within the
meaning of the Minnesota Constitution and capital expenditures under generally accepted
accounting principles, and will be financed more efficiently and economically under this
section than by direct appropriations for specific projects.
new text end

new text begin Subd. 5. new text end

new text begin Program administration. new text end

new text begin (a) The commissioner shall establish general
program requirements and a competitive process for financial assistance, including but
not limited to eligibility requirements for grant recipients and projects; procedures for
solicitation of grants; application requirements; procedures for payment of financial
assistance awards; and a schedule for application, evaluation, and award of financial
assistance.
new text end

new text begin (b) An application must include:
new text end

new text begin (1) a detailed and specific description of the project;
new text end

new text begin (2) an estimate, along with necessary supporting evidence, of the total costs for the
project and the allocation of identified and proposed funding sources for the project;
new text end

new text begin (3) an assessment of the need for and benefits of the project;
new text end

new text begin (4) a resolution adopted by the governing body of the school for which a safe routes
to school grant is requested, certifying that: (i) the governing body of the school supports
the project; and (ii) funds, if any, required to be supplied by the school to complete the
project are available and committed;
new text end

new text begin (5) a timeline indicating the major milestones of the project and their anticipated
completion dates; and
new text end

new text begin (6) any additional information or material the commissioner prescribes.
new text end

new text begin (c) The commissioner shall make reasonable efforts to (1) publicize each solicitation
for applications among all eligible recipients, and (2) provide technical and informational
assistance in creating and submitting applications.
new text end

new text begin (d) By January 1, 2013, the commissioner of transportation shall publish and
maintain a manual on the safe routes to school program that assists applicants for and
recipients of financial assistance. The manual must include identification of eligibility
and general program requirements, explanation of the application process, and review of
criteria for evaluation of projects.
new text end

new text begin Subd. 6. new text end

new text begin Evaluation criteria. new text end

new text begin The commissioner shall establish criteria for
evaluation of applications and selection of projects. The criteria must include:
new text end

new text begin (1) establishment or capital improvement of transportation infrastructure that
improves safety and encourages nonmotorized transportation to and from a school;
new text end

new text begin (2) compliance with all applicable requirements for capital infrastructure projects
established by the Federal Highway Administration, U.S. Department of Transportation,
for the federal program; and
new text end

new text begin (3) other components as determined by the commissioner.
new text end

new text begin Subd. 7. new text end

new text begin Grant cancellation. new text end

new text begin If, five years after execution of a grant agreement,
the commissioner determines that the grantee has not proceeded in a timely manner
with implementation of the project funded, the commissioner must cancel the grant
and the grantee must repay to the commissioner all grant money paid to the grantee.
Section 16A.642 applies to any appropriations made from the bond proceeds fund to the
commissioner under this section that have not been awarded as financial assistance.
new text end

new text begin Subd. 8. new text end

new text begin Legislative report. new text end

new text begin By November 1 annually, the commissioner shall
submit a report on the safe routes to school program to the chairs and ranking minority
members of the house of representatives and senate committees with jurisdiction over
transportation policy and finance. The report must at a minimum:
new text end

new text begin (1) summarize program implementation;
new text end

new text begin (2) provide an overview of grant evaluation and criteria used in project selection;
new text end

new text begin (3) provide a brief description of each project funded in the previous fiscal year,
including the amount of money provided from each safe routes to school account under
this section and the amount provided under the federal program;
new text end

new text begin (4) summarize the status of the federal program or successor legislation; and
new text end

new text begin (5) identify any recommendations for legislative changes, including proposals to
improve program effectiveness.
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. 50.

Minnesota Statutes 2011 Supplement, section 297B.03, is amended to read:

297B.03 EXEMPTIONS.

There is specifically exempted from the provisions of this chapter and from
computation of the amount of tax imposed by it the following:

(1) purchase or use, including use under a lease purchase agreement or installment
sales contract made pursuant to section 465.71, of any motor vehicle by the United States
and its agencies and instrumentalities and by any person described in and subject to the
conditions provided in section 297A.67, subdivision 11;

(2) purchase or use of any motor vehicle by any person who was a resident of
another state or country at the time of the purchase and who subsequently becomes a
resident of Minnesota, provided the purchase occurred more than 60 days prior to the date
such person began residing in the state of Minnesota and the motor vehicle was registered
in the person's name in the other state or country;

(3) purchase or use of any motor vehicle by any person making a valid election to be
taxed under the provisions of section 297A.90;

(4) purchase or use of any motor vehicle previously registered in the state of
Minnesota when such transfer constitutes a transfer within the meaning of section 118,
331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal
Revenue Code;

(5) purchase or use of any vehicle owned by a resident of another state and leased
to a Minnesota-based private or for-hire carrier for regular use in the transportation of
persons or property in interstate commerce provided the vehicle is titled in the state of
the owner or secured party, and that state does not impose a sales tax or sales tax on
motor vehicles used in interstate commerce;

(6) purchase or use of a motor vehicle by a private nonprofit or public educational
institution for use as an instructional aid in automotive training programs operated by the
institution. "Automotive training programs" includes motor vehicle body and mechanical
repair courses but does not include driver education programs;

(7) purchase of a motor vehicle by an ambulance service licensed under section
144E.10 when that vehicle is equipped and specifically intended for emergency response
or for providing ambulance service;

(8) purchase of a motor vehicle by or for a public library, as defined in section
134.001, subdivision 2, as a bookmobile or library delivery vehicle;

(9) purchase of a ready-mixed concrete truck;

(10) purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles,
vans, or pickup trucks;

(11) purchase or use of a motor vehicle by a corporation, society, association,
foundation, or institution organized and operated exclusively for charitable, religious,
or educational purposes, except a public school, university, or library, but only if the
vehicle is:

(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and
used for carrying more than nine persons including the driver; and

(ii) intended to be used primarily to transport tangible personal property or
individuals, other than employees, to whom the organization provides service in
performing its charitable, religious, or educational purpose;

(12) purchase of a motor vehicle for use by a transit provider exclusively to provide
transit service is exempt if the transit provider is either (i) receiving financial assistance or
reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29,
473.388, or 473.405;

(13) purchase or use of a motor vehicle by a qualified business, as defined in section
469.310, located in a job opportunity building zone, if the motor vehicle is principally
garaged in the job opportunity building zone and is primarily used as part of or in direct
support of the person's operations carried on in the job opportunity building zone. The
exemption under this clause applies to sales, if the purchase was made and delivery
received during the duration of the job opportunity building zone. The exemption under
this clause also applies to any local sales and use tax; deleted text begin and
deleted text end

(14) purchase of a leased vehicle by the lessee who was a participant in a
lease-to-own program from a charitable organization that is:

(i) described in section 501(c)(3) of the Internal Revenue Code; and

(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4 new text begin ; and
new text end

new text begin (15) purchase of a motor vehicle used exclusively as a mobile medical unit for the
provision of medical or dental services by a federally qualified health center, as defined
under title 19 of the Social Security Act, as amended by section 4161 of the Omnibus
Budget Reconciliation Act of 1990 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2010.
new text end

Sec. 51.

Minnesota Statutes 2010, 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.

The deleted text begin fees deleted text end new text begin fee new text end charged for services provided by the State Patrol with a vehicle deleted text begin are
$73.60 deleted text end new text begin is $79.28 new text end an hour deleted text begin in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and
thereafter deleted text end . The deleted text begin fees deleted text end new text begin fee new text end charged for services provided without a vehicle deleted text begin are $54 deleted text end new text begin is $59.28
new text end an hour deleted text begin in fiscal year 2008 and $56.16 an hour in fiscal year 2009 and thereafter deleted text end .

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 begin in fiscal year
2012, and $139.64 an hour for a fixed wing aircraft, $560.83 an hour for a helicopter, and
$454.84 an hour for the Queen Air in fiscal year 2013 and in fiscal year 2014 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 52.

Minnesota Statutes 2010, section 325F.6641, is amended to read:

325F.6641 DISCLOSURE OF MOTOR VEHICLE DAMAGE.

Subdivision 1.

Damage.

(a) If a deleted text begin motor deleted text end new text begin late-model new text end vehicle new text begin , as defined in section
168A.01, subdivision 8a, new text end has sustained damage by collision or other occurrence which
exceeds deleted text begin 70 deleted text end new text begin 80 new text end percent of its actual cash value immediately prior to sustaining damage, the
seller must disclose that fact to the buyer, if the seller has actual knowledge of the damage.
The amount of damage is determined by the retail cost of repairing the vehicle based on a
complete written retail repair estimate or invoice deleted text begin , exclusive of the actual cost incurred to
repair, replace, or reinstall inflatable safety restraints and other vehicle components that
must be replaced due to the deployment of the inflatable safety restraints deleted text end .

(b) The disclosure required under this subdivision must be made in writing on the
application for title and registration or other transfer document, in a manner prescribed
by the registrar of motor vehicles. The registrar shall revise the certificate of title form,
including the assignment by seller (transferor) and reassignment by licensed dealer
sections of the form, the separate application for title forms, and other transfer documents
to accommodate this disclosure. If the seller is a motor vehicle dealer licensed pursuant to
section 168.27, the disclosure required by this section must be made orally by the dealer to
the prospective buyer in the course of the sales presentation.

(c) Upon transfer and application for title to a vehicle covered by this subdivision,
the registrar shall record the term "rebuilt" on the first Minnesota certificate of title and all
subsequent Minnesota certificates of title used for that vehicle.

Subd. 2.

Form of disclosure.

The disclosure required in this section must be made
in substantially the following form: "To the best of my knowledge, this vehicle has .....
has not ..... sustained damage deleted text begin , exclusive of any costs to repair, replace, or reinstall air bags
and other components that were replaced due to deployment of air bags, deleted text end in excess of
deleted text begin 70 deleted text end new text begin 80 new text end percent actual cash value."

Sec. 53.

Minnesota Statutes 2010, section 325F.6644, subdivision 1, is amended to
read:

Subdivision 1.

Damage disclosure.

Section 325F.6641 does not apply to deleted text begin vehicles
that are six years old or older as calculated from the first day of January of the designated
model year or to deleted text end commercial motor vehicles with a gross vehicle weight rating of 16,000
pounds or more or to motorcycles.

Sec. 54.

Minnesota Statutes 2010, section 325F.6644, subdivision 2, is amended to
read:

Subd. 2.

Title branding.

Section 325F.6642 does not apply to commercial motor
vehicles with a gross vehicle weight rating of 16,000 pounds or more or to motorcycles,
other than reconstructed vehicles, as defined in section 168A.01, subdivision 16 new text begin , and
restored pioneer vehicles, as defined in section 168A.01, subdivision 16a new text end .

Sec. 55.

Laws 2009, chapter 36, article 3, section 28, is amended to read:

Sec. 28. DESIGN-BUILD deleted text begin PROJECT SELECTION COUNCIL deleted text end new text begin LOCAL
PROJECTS new text end .

deleted text begin Subdivision 1. deleted text end

deleted text begin Establishment of council. deleted text end

deleted text begin A Design-Build Project Selection
Council is established to select, evaluate, and support county and municipal transportation
projects on the state-aid system that are conducive to use of the design-build method of
contracting and to report to the legislature.
deleted text end

new text begin Subd. 1a. new text end

new text begin Selection authority. new text end

new text begin The commissioner of transportation or the
commissioner's designee from the Department of Transportation State Aid for Local
Transportation Division shall select, evaluate, and support county and municipal
transportation projects on the state-aid system that are conducive to use of the design-build
method of contracting.
new text end

Subd. 2.

Duties of deleted text begin council deleted text end new text begin commissioner new text end .

In order to accomplish these purposes,
the deleted text begin council deleted text end new text begin commissioner new text end shall:

(1) review applications for participation received by the commissioner from counties
and cities;

(2) select new text begin projects new text end for participation in deleted text begin the pilot program a maximum of 15 projects
on the state-aid system, no more than ten of which may be on the county state-aid highway
system, and no more than ten of which may be on the municipal state-aid street system deleted text end new text begin
each calendar year new text end ;

(3) determine that the use of design-build in the selected projects would serve the
public interest, after considering, at a minimum:

(i) the extent to which the municipality can adequately define the project
requirements in a proposed scope of the design and construction desired;

(ii) the time constraints for delivery of the project;

(iii) the capability of potential contractors with the design-build method of project
delivery;

(iv) the suitability of the project for use of the design-build method of project
delivery with respect to time, schedule, costs, and quality factors;

(v) the capability of the municipality to manage the project, including the
employment of experienced personnel or outside consultants; and

(vi) the original character of the product or the services; new text begin and
new text end

(4) periodically review and evaluate the use of design-build in the selected projects deleted text begin ;
and deleted text end

deleted text begin (5) assist the commissioner in preparing a report to the legislature at the conclusion
of the pilot program deleted text end .

deleted text begin Subd. 3. deleted text end

deleted text begin Membership. deleted text end

deleted text begin (a) The council is composed of the following members:
deleted text end

deleted text begin (1) two contractors, at least one of whom represents a small contracting firm,
selected by the Associated General Contractors, Minnesota chapter;
deleted text end

deleted text begin (2) two project designers selected by the American Council of Engineering
Companies, Minnesota chapter;
deleted text end

deleted text begin (3) one representative of a metropolitan area county selected by the Association
of Minnesota Counties;
deleted text end

deleted text begin (4) one representative of a greater Minnesota county selected by the Association
of Minnesota Counties;
deleted text end

deleted text begin (5) one representative of a metropolitan area city selected by the League of
Minnesota Cities;
deleted text end

deleted text begin (6) one representative of a greater Minnesota city selected by the League of
Minnesota Cities; and
deleted text end

deleted text begin (7) the commissioner of transportation or a designee from the Minnesota Department
of Transportation Division of State Aid for Local Transportation.
deleted text end

deleted text begin (b) All appointments required by paragraph (a) must be completed by August
1, 2009.
deleted text end

deleted text begin (c) The commissioner or the commissioner's designee shall convene the first meeting
of the council within two weeks after the members have been appointed to the council and
shall serve as chair of the council.
deleted text end

deleted text begin Subd. 4. deleted text end

deleted text begin Report to legislature. deleted text end

deleted text begin Annually, by January 15, the council shall submit
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation budget and policy, and to the legislature as provided under
Minnesota Statutes, section 15.059. The report must summarize the design-build pilot
program selection process, including the number of applications considered; the proposal
process for each project that was selected; the contracting process for each project that was
completed; and project costs. The report must evaluate the process and results applying
the performance-based measures with which the commissioner evaluates trunk highway
design-build projects. The report must include any recommendations for future legislation.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires upon completion of nine design-build projects.
new text end

Sec. 56.

Laws 2009, chapter 36, article 3, section 28, the effective date, is amended to
read:

deleted text begin EFFECTIVE DATE. deleted text end

deleted text begin This section is effective the day following final enactment
and expires on October 1, 2012, or upon completion of nine design-build projects under
this pilot program, whichever occurs first.
deleted text end

Sec. 57.

Laws 2009, chapter 36, article 3, section 29, is amended to read:

Sec. 29. DESIGN-BUILD CONTRACTING deleted text begin PILOT deleted text end PROGRAM.

Subdivision 1.

Definitions.

The following terms have the meanings given:

(1) "commissioner" means the commissioner of transportation;

(2) "municipality" means a county or statutory or home rule charter city;

(3) "design-build contract" means a single contract between a municipality and a
design-build company or firm to furnish the architectural or engineering and related design
services as well as the labor, material, supplies, equipment, and construction services for
the transportation project;

(4) "design-build firm" means a proprietorship, partnership, limited liability
partnership, joint venture, corporation, any type of limited liability company, professional
corporation, or any legal entity;

(5) "design professional" means a person who holds a license under Minnesota
Statutes, chapter 326B, that is required to be registered under Minnesota law;

(6) "design-build transportation project" means the procurement of both the design
and construction of a transportation project in a single contract with a company or
companies capable of providing the necessary engineering services and construction;

(7) "design-builder" means the design-build firm that proposes to design and build a
transportation project governed by the procedures of this section;

(8) "request for proposals" or "RFP" means the document by which the municipality
solicits proposals from qualified design-build firms to design and construct the
transportation project;

(9) "request for qualifications" or "RFQ" means a document to qualify potential
design-build firms; and

(10) "responsive proposal" means a technical proposal of which no major component
(i) contradicts the goals of the project, (ii) materially violates an RFP requirement so as
to give the proposer a competitive advantage, or (iii) places conditions on a proposal
inconsistent with the requirements of the RFP.

Subd. 2.

Establishment of deleted text begin pilot deleted text end new text begin the new text end program.

(a) The commissioner of
transportation shall conduct a design-build contracting deleted text begin pilot deleted text end program to select local
transportation projects for participation in the program, to conduct information sessions
for engineers and contractors, to support and evaluate the use of the design-build method
of contracting by counties and statutory and home rule charter cities in constructing,
improving, and maintaining streets and highways on the state-aid system deleted text begin , and to report to
the legislature deleted text end .

(b) new text begin The commissioner must concur in the RFQ and RFP prior to solicitation.
new text end

new text begin (c) new text end The selection of design-build projects under the deleted text begin pilot deleted text end program must be as made
by the deleted text begin Design-Build Project Selection Council established deleted text end new text begin commissioner as provided new text end in
section 28.

Subd. 3.

Licensing requirements.

(a) Each design-builder shall employ, or have
as a partner, member, officer, coventurer, or subcontractor, a person duly licensed and
registered to provide the design services required to complete the project and do business
in the state, including the provision of sureties of sufficient amount to protect the interests
of the awarding municipality.

(b) A design-builder may enter into a contract to provide professional or construction
services for a project that the design-builder is not licensed, registered, or qualified to
perform, so long as the design-builder provides those services through subcontractors with
duly licensed, registered, or otherwise qualified individuals in accordance with Minnesota
Statutes, sections 161.3410 to 161.3428.

(c) Nothing in this section authorizing design-build contracts is intended to limit or
eliminate the responsibility or liability owed by a professional on a design-build project to
the state, municipality, or other third party under existing law.

(d) The design service portion of a design-build contract must be considered a
service and not a product.

Subd. 4.

Information session for municipal engineer.

After a project is selected
for participation in the design-build contracting deleted text begin pilot deleted text end program, the commissioner or the
commissioner's designee with design-build experience shall conduct an information
session for the municipality's engineer for each selected project, in which issues unique
to design-build must be discussed, including, but not limited to, writing an RFP, project
oversight requirements, assessing risk, and communication with the design-build firm.
After participation in the information session, the municipality's engineer is qualified to
post the selected project, along with any future design-build project RFP in the deleted text begin pilot deleted text end
program.

Subd. 5.

Technical Review Committee.

During the phase one RFQ and before
solicitation, the municipality shall appoint a Technical Review Committee of at least
five individuals. The Technical Review Committee must include an individual whose
name and qualifications are submitted to the municipality by the Minnesota chapter of
the Associated General Contractors, after consultation with other commercial contractor
associations in the state. Members of the Technical Review Committee who are not state
employees are subject to the Minnesota Government Data Practices Act and Minnesota
Statutes, section 16C.06, to the same extent that state agencies are subject to those
provisions. A Technical Review Committee member may not participate in the review or
discussion of responses to the RFQ or RFP when a design-build firm in which the member
has a financial interest has responded to the RFQ or RFP. "Financial interest" includes,
but is not limited to, being or serving as an owner, employee, partner, limited liability
partner, shareholder, joint venturer, family member, officer, or director of a design-build
firm responding to an RFQ or RFP for a specific project, or having any other economic
interest in that design-build firm. The members of the Technical Review Committee must
be treated as municipal employees in the event of litigation resulting from any action
arising out of their service on the committee.

Subd. 6.

Phase one; design-build RFQ.

The municipality shall prepare an RFQ,
which must include the following:

(1) the minimum qualifications of design-builders necessary to meet the requirements
for acceptance;

(2) a scope of work statement and schedule;

(3) documents defining the project requirements;

(4) the form of contract to be awarded;

(5) the weighted selection criteria for compiling a short list and the number of firms
to be included in the short list, which must be at least two but not more than five;

(6) a description of the request for proposals (RFP) requirements;

(7) the maximum time allowed for design and construction;

(8) the municipality's estimated cost of design and construction;

(9) requirements for construction experience, design experience, financial,
personnel, and equipment resources available from potential design-builders for the
project and experience in other design-build transportation projects or similar projects,
provided that these requirements may not unduly restrict competition; and

(10) a statement that "past performance" or "experience" or other criteria used in the
RFQ evaluation process does not include the exercise or assertion of a person's legal rights.

Subd. 7.

Information session for prospective design-build firms.

After a
design-build project is advertised, any prospective design-build firm shall attend a
design-build information session conducted by the commissioner or the commissioner's
designee with design-build experience. The information must include information about
design-build contracts, including, but not limited to, communication with partner firms,
project oversight requirements, assessing risk, and communication with the municipality's
engineer. After participation in the information session, the design-build firm is eligible to
bid on the design-build project and any future design-build deleted text begin pilot deleted text end program projects.

Subd. 8.

Evaluation.

The selection team shall evaluate the design-build
qualifications of responding firms and shall compile a short list of no more than five
most highly qualified firms in accordance with qualifications criteria described in the
RFQ. If only one design-build firm responds to the RFQ or remains on the short list, the
municipality may readvertise or cancel the project as the municipality deems necessary.

Subd. 9.

Phase two; design-build RFP.

The municipality shall prepare an RFP,
which must include:

(1) the scope of work, including (i) performance and technical requirements, (ii)
conceptual design, (iii) specifications consistent with state standards and specifications,
and (iv) functional and operational elements for the delivery of the completed project, all
of which must be prepared by a registered or licensed professional engineer;

(2) copies of the contract documents that the successful proposer will be expected to
sign;

(3) the maximum time allowable for design and construction;

(4) the road authority's estimated cost of design and construction;

(5) the requirement that a submitted proposal be segmented into two parts, a
technical proposal and a price proposal;

(6) the requirement that each proposal be in a separately sealed, clearly identified
package and include the date and time of the submittal deadline;

(7) the requirement that the technical proposal include a critical path method,
bar schedule of the work to be performed, or similar schematic; preliminary design
plans and specifications; technical reports; calculations; permit requirements; applicable
development fees; and other data requested in the RFP;

(8) the requirement that the price proposal contain all design, construction,
engineering, inspection, and construction costs of the proposed project;

(9) the requirement that surety be submitted equal to the total amount of the proposal;

(10) a description of the qualifications required of the design-builder and the
selection criteria, including the weight of each criterion and subcriterion;

(11) the date, time, and location of the public opening of the sealed price proposals;

(12) the amount of, and eligibility for, a stipulated fee;

(13) other information relevant to the project; and

(14) a statement that "past performance," "experience," or other criteria used in the
RFP evaluation process does not include the exercise or assertion of a person's legal rights.

Subd. 10.

Design-build award; computation; announcement.

A design-build
contract shall be awarded as follows:

(a) The Technical Review Committee shall score the technical proposals of the
proposers selected under subdivision 8 using the selection criteria in the RFP. The
Technical Review Committee shall then submit a technical proposal score for each
design-builder to the municipality. The Technical Review Committee shall reject any
nonresponsive proposal, including those unable to provide sufficient surety to guarantee
project completion. The municipality shall review the technical proposal scores.

(b) The commissioner or the commissioner's designee shall review the technical
proposal scores. The commissioner shall submit the final technical proposal scores to the
municipality.

(c) The municipality shall announce the technical proposal score for each
design-builder and shall publicly open the sealed price proposals and shall divide each
design-builder's price by the technical score that the commissioner has given to it to obtain
an adjusted score. The design-builder selected must be that responsive and responsible
design-builder whose adjusted score is the lowest.

(d) If a time factor is included with the selection criteria in the RFP package, the
municipality may use a value of the time factor established by the municipality as a
criterion in the RFP.

(e) Unless all proposals are rejected, the municipality shall award the contract
to the responsive and responsible design-builder with the lowest adjusted score. The
municipality shall reserve the right to reject all proposals.

(f) The municipality shall award a stipulated fee not less than two-tenths of one
percent of the municipality's estimated cost of design and construction to each short-listed,
responsible proposer who provides a responsive but unsuccessful proposal. If the
municipality does not award a contract, all short-listed proposers must receive the
stipulated fee. If the municipality cancels the contract before reviewing the technical
proposals, the municipality shall award each design-builder on the short list a stipulated
fee of not less than two-tenths of one percent of the municipality's estimated cost of
design and construction. The municipality shall pay the stipulated fee to each proposer
within 90 days after the award of the contract or the decision not to award a contract.
In consideration for paying the stipulated fee, the municipality may use any ideas or
information contained in the proposals in connection with any contract awarded for the
project or in connection with a subsequent procurement, without any obligation to pay
any additional compensation to the unsuccessful proposers. Notwithstanding the other
provisions of this subdivision, an unsuccessful short-list proposer may elect to waive
the stipulated fee. If an unsuccessful short-list proposer elects to waive the stipulated
fee, the municipality may not use ideas and information contained in that proposer's
proposal. Upon the request of the municipality, a proposer who waived a stipulated fee
may withdraw the waiver, in which case the municipality shall pay the stipulated fee to the
proposer and thereafter may use ideas and information in the proposer's proposal.

(g) The municipality shall not limit the ability of design-builders that have submitted
proposals to protest a contemplated or actual award by the commissioner by, among
other things, unreasonably restricting the time to protest; restricting the right to seek
judicial review of the commissioner's actions; attempting to change the judicial standard
of review; or requiring the protestor to pay attorney fees for an unsuccessful, nonfrivolous
protest. Unless all design-builders that have submitted proposals agree to execution of
a contract for the project without a waiting period beforehand, the municipality shall
wait at least seven days after both the award of the project and public disclosure of the
Technical Review Committee's scoring data and the successful proposal before executing
a contract for the project.

Subd. 11.

Low-bid design-build process.

(a) The municipality may also use
low-bid, design-build procedures to award a design-build contract where the scope of
the work can be clearly defined.

(b) Low-bid design-build projects may require an RFQ and short-listing, and must
require an RFP.

(c) Submitted proposals under this subdivision must include separately a technical
proposal and a price proposal. The low-bid, design-build procedures must follow a
two-step process for review of the responses to the RFP as follows:

(1) the first step is the review of the technical proposal by the Technical Review
Committee as provided in subdivision 5. The Technical Review Committee must open
the technical proposal first and must determine if it complies with the requirements of the
RFP and is responsive. The Technical Review Committee may not perform any ranking
or scoring of the technical proposals; and

(2) the second step is the determination of the low bidder based on the price
proposal. The municipality may not open the price proposal until the review of the
technical proposal is complete.

(d) The contract award under low-bid, design-build procedures must be made to the
proposer whose sealed bid is responsive to the technical requirements as determined by
the Technical Review Committee and that is also the lowest bid.

(e) A stipulated fee may be paid for unsuccessful bids on low-bid, design-build
projects only when the municipality has required an RFQ and short-listed the most highly
qualified responsive bidders.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires upon completion of nine design-build projects.
new text end

Sec. 58.

Laws 2009, chapter 36, article 3, section 29, the effective date, is amended to
read:

deleted text begin EFFECTIVE DATE. deleted text end

deleted text begin This section is effective the day following final enactment
and expires on October 1, 2012, or upon completion of nine design-build projects under
this pilot program, whichever occurs first.
deleted text end

Sec. 59. new text begin PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.
new text end

new text begin (a) The commissioner of transportation is authorized to consider and utilize
public-private partnership procurement methods for up to three pilot projects if objective
analysis demonstrates that it provides better long-term value for the state than traditional
procurement methods.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 160.845, 160.98, or any other law
to the contrary, the commissioner may consider for use in the pilot program any existing
public-private partnership mechanism or any proposed mechanism that proves the best
available option for the state. Mechanisms the commissioner may consider include, but
are not limited to, toll facilities, BOT facilities, or BTO facilities. For the purposes of this
paragraph, toll facilities, BOT facilities, and BTO facilities have the meanings given
under section 160.84.
new text end

new text begin (c) Among the projects the commissioner may consider is the construction of the
Interstate 94/U.S. Highway 10 River Crossing near marked Trunk Highway 24.
new text end

Sec. 60. new text begin PILOT PROGRAM RESTRICTIONS.
new text end

new text begin (a) The commissioner may not receive, consider, evaluate, or accept unsolicited
proposals for a public-private initiative.
new text end

new text begin (b) The commissioner shall select a private entity or entities for a public-private
partnership on a competitive basis to the maximum extent possible.
new text end

new text begin (c) When entering into a public-private partnership, the commissioner may not enter
into any noncompete agreement that inhibits the state's ability to address ongoing or
future infrastructure needs.
new text end

new text begin (d) If the commissioner enters into a public-private partnership agreement that
includes a temporary transfer of ownership or control of a road, bridge, or other
infrastructure investment to the private entity, the agreement must include a provision
requiring the return of the road, bridge, or other infrastructure investment to the state
after a specified period of time.
new text end

Sec. 61. new text begin CONSIDERATIONS IN SELECTING PRIVATE ENTITY.
new text end

new text begin In soliciting, evaluating, and selecting a private entity with which to enter into a
public-private project, the commissioner must consider:
new text end

new text begin (1) the ability of the proposed project to improve safety, reduce congestion, increase
capacity, and promote economic growth;
new text end

new text begin (2) the proposed cost of and financial plan for the project;
new text end

new text begin (3) the general reputation, qualifications, industry experience, and financial capacity
of the private entity;
new text end

new text begin (4) the project's proposed design, operation, and feasibility;
new text end

new text begin (5) comments from local citizens and affected jurisdictions;
new text end

new text begin (6) benefits to the public;
new text end

new text begin (7) the safety record of the private entity; and
new text end

new text begin (8) any other criteria the commissioner deems appropriate.
new text end

Sec. 62. new text begin PUBLIC-PRIVATE AGREEMENT.
new text end

new text begin (a) A public-private new text end new text begin agreement between the commissioner and a private entity shall,
at a minimum, specify:
new text end

new text begin (1) the planning, acquisition, financing, development, design, construction,
reconstruction, replacement, improvement, maintenance, management, repair, leasing, or
operation of the project;
new text end

new text begin (2) the term of the public-private agreement;
new text end

new text begin (3) the type of property interest, if any, that the private entity will have in the project;
new text end

new text begin (4) a description of the actions the commissioner may take to ensure proper
maintenance of the project;
new text end

new text begin (5) whether user fees will be collected on the project and the basis by which the
user fees shall be determined and modified;
new text end

new text begin (6) compliance with applicable federal, state, and local laws;
new text end

new text begin (7) grounds for termination of the public-private agreement by the commissioner; and
new text end

new text begin (8) procedures for amendment of the agreement.
new text end

new text begin (b) A public-private agreement between the commissioner and a private entity
may provide for:
new text end

new text begin (1) review and approval by the commissioner of the private entity's plans for the
development and operation of the project;
new text end

new text begin (2) inspection by the commissioner of construction and improvements to the project;
new text end

new text begin (3) maintenance by the private entity of a liability insurance policy;
new text end

new text begin (4) filing of appropriate financial statements by the private entity on a periodic basis;
new text end

new text begin (5) filing of traffic reports by the private entity on a periodic basis;
new text end

new text begin (6) financing obligations of the commissioner and the private entity;
new text end

new text begin (7) apportionment of expenses between the commissioner and the private entity;
new text end

new text begin (8) the rights and remedies available in the event of a default or delay;
new text end

new text begin (9) the rights and duties of the private entity, the commissioner, and other state or
local governmental entities with respect to the use of the project;
new text end

new text begin (10) the terms and conditions of indemnification of the private entity by the
commissioner;
new text end

new text begin (11) assignment, subcontracting, or other delegations of responsibilities of the
private entity or commissioner under agreement to third parties, including other private
entities or state agencies;
new text end

new text begin (12) if applicable, sale or lease to the private entity of private new text end new text begin property related to
the project;
new text end

new text begin (13) traffic enforcement and other policing issues; and
new text end

new text begin (14) any other terms and conditions the commissioner deems appropriate.
new text end

Sec. 63. new text begin FUNDING FROM FEDERAL GOVERNMENT.
new text end

new text begin (a) The commissioner may accept from the United States or any of its agencies
funds that are available to the state for carrying out the pilot program, whether the funds
are available by grant, loan, or other financial assistance.
new text end

new text begin (b) The commissioner may enter into agreements or other arrangements with the
United States or any of its agencies as necessary for carrying out the pilot program.
new text end

new text begin (c) The commissioner may combine federal, state, local, and private funds to finance
a public-private partnership pilot project.
new text end

Sec. 64. new text begin REPORTING ON PUBLIC-PRIVATE PILOT PROGRAM.
new text end

new text begin By August 1, 2014, and annually by August 1 thereafter, the commissioner shall
submit to the chairs and ranking minority members of the house of representatives and
senate committees having jurisdiction over transportation policy and finance a listing of
all agreements executed under the pilot program authority. The listing must identify
each agreement, the contracting entities, contract amount and duration, any repayment
requirements, and provide an update on the project's progress. The listing may be
submitted electronically and is subject to Minnesota Statutes, section 3.195, subdivision 1.
new text end

Sec. 65. new text begin DISTANCE-BASED FARE SURCHARGE; PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Pilot program authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 473.408, subdivision 2a, or any other law to the contrary, replacement service
transit providers operating under Minnesota Statutes, section 473.388, may establish a
pilot program that adds a distance-based surcharge to standard transit fares.
new text end

new text begin Subd. 2. new text end

new text begin Pilot program restrictions. new text end

new text begin (a) A replacement service transit provider
exercising its authority under subdivision 1 may only impose a distance-based surcharge
on routes with a total length greater than 15 miles.
new text end

new text begin (b) Any distance-based surcharge imposed must be prorated on the basis of the
distance traveled by the rider paying the surcharge.
new text end

new text begin Subd. 3. new text end

new text begin Reporting requirements. new text end

new text begin By August 1 of each year a pilot program is
in effect, the replacement service transit provider imposing the distance-based surcharge
shall submit to the chairs and ranking minority members of the house of representatives
and senate committees having jurisdiction over transportation policy and finance a
report detailing the activities of the pilot program. The report shall include information
specifying the total revenue collected from the distance-based surcharge and the average
surcharge collected per rider, analyzing any impact the surcharge has had on the fare
policy considerations under Minnesota Statutes, section 473.408, subdivision 2, and any
other information requested by the chairs of the house of representatives and senate
committees having jurisdiction over transportation policy and finance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires on January 1, 2016.
new text end

Sec. 66. new text begin REPORTS ON USE OF CONSTRUCTION MANAGER/GENERAL
CONTRACTOR METHOD.
new text end

new text begin Subdivision 1. new text end

new text begin Submission of reports. new text end

new text begin The commissioner shall report on experience
with and evaluation of the construction manager/general contractor method of contracting
authorized in Minnesota Statutes, sections 161.3207 to 161.3209. The reports must be
submitted to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation policy or transportation finance and in compliance with
Minnesota Statutes, sections 3.195 and 3.197. An interim report must be submitted
no later than 12 months following the commissioner's acceptance of five construction
manager/general contractor contracts. A final report must be submitted no later than 12
months following the commissioner's acceptance of ten construction manager/general
contractor contracts.
new text end

new text begin Subd. 2. new text end

new text begin Content of reports. new text end

new text begin The reports must include: (1) a description of
circumstances of any projects as to which construction manager/general contractor
requests for qualifications or requests for proposals were solicited, followed by a
cancellation of the solicitation; (2) a description of projects as to which construction
manager/general contractor method was utilized; (3) a comparison of project cost
estimates with final project costs, if available; and (4) evaluation of the construction
manager/general contractor method of procurement with respect to implications for
project cost, use of innovative techniques, completion time, and obtaining maximum
value. The final report must also include recommendations as to continued use of the
program and desired modifications to the program, and recommended legislation to
continue, discontinue, or modify the program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires one year following the acceptance of ten construction manager/general
contractor contracts.
new text end

Sec. 67. new text begin MUNICIPAL STATE-AID STREET FUND 2013 ALLOCATION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 162.13, subdivision 1, the
commissioner of transportation shall allocate the apportionment sum available in the
municipal state-aid street fund, following the deductions under Minnesota Statutes, section
162.12, as provided in this section.
new text end

new text begin (b) The commissioner shall identify a remuneration sum for each city that:
new text end

new text begin (1) qualifies for municipal state-aid street funds under Minnesota Statutes, section
162.09, subdivision 4a; and
new text end

new text begin (2) was not allocated municipal state-aid street funds for calendar year 2012.
new text end

new text begin (c) The remuneration sum for each city equals the amount the city received under
the allocation of municipal state-aid street funds for calendar year 2011.
new text end

new text begin (d) For the calendar year 2013 allocation only, the commissioner shall:
new text end

new text begin (1) allocate to the appropriate city an amount from the apportionment sum equal
to the remuneration sum calculated in paragraph (c); and
new text end

new text begin (2) allocate the remaining apportionment sum as provided under Minnesota Statutes,
section 162.13, subdivision 1.
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. 68. new text begin TRANSFER OF MONEY FROM MUNICIPAL STATE-AID STREET
FUND FOR MUNICIPAL BOND DEBT SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following definitions
apply:
new text end

new text begin (1) "bonds" means municipal general obligation bonds dated July 17, 2008, of which
the original principal amount of $1,055,000 applies to state-aid streets; and
new text end

new text begin (2) "city" means a city that:
new text end

new text begin (i) issued bonds;
new text end

new text begin (ii) received municipal state-aid distributions immediately before the 2010 federal
decennial census; and
new text end

new text begin (iii) was found in the 2010 federal decennial census to have fewer than 5,000
population.
new text end

new text begin Subd. 2. new text end

new text begin Population. new text end

new text begin In any calendar year in which the city is not eligible, other than
as provided by this section, to receive a municipal state-aid street fund apportionment, the
city is deemed to have a population of 5,000 or more solely for the purposes of Minnesota
Statutes, section 162.18, and solely with respect to the bonds defined in this section.
new text end

new text begin Subd. 3. new text end

new text begin Deposit in sinking fund. new text end

new text begin The commissioner of management and budget
shall, until the bonds are retired, issue a warrant annually in the amount certified by the
commissioner of transportation as needed by the city for the principal and interest, to the
fiscal officer of the city, and the amount must be deposited by the fiscal officer in the
sinking fund from which the principal and interest on the bonds are payable.
new text end

new text begin Subd. 4. new text end

new text begin Transfer from municipal state-aid street fund. new text end

new text begin In each year in which
the city is not eligible to receive a municipal state-aid street fund apportionment, other
than as provided by this section, the commissioner of transportation shall, following the
deductions under Minnesota Statutes, section 162.12, transfer from the municipal state-aid
street fund to the city's maintenance account money sufficient to pay the principal and
interest on the bonds as they become due.
new text end

new text begin Subd. 5. new text end

new text begin Allocation of remaining municipal state-aid apportionment sum.
new text end

new text begin The commissioner of transportation shall allocate the remaining apportionment sum as
provided under Minnesota Statutes, section 162.13, subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and expires on the earlier of the day after the bonds are retired or the day after the
commissioner of management and budget has, under this section or under Minnesota
Statutes, section 162.18, transferred to the city's sinking fund an amount that will be
sufficient to retire the bonds.
new text end

Sec. 69. new text begin WATER PERMITTING PROCESSES FOR TRANSPORTATION
PROJECTS; REPORT.
new text end

new text begin By November 15, 2012, the commissioners of transportation, natural resources, and
the Pollution Control Agency, in consultation with local road authorities and the Board of
Water and Soil Resources, shall submit recommendations to the house of representatives
and senate committees and divisions with primary jurisdiction over environment and
natural resources policy and finance and transportation policy and finance on how
water-related permitting for transportation projects can best be streamlined through
creation of a single point of issuance system. The recommendations shall specifically:
new text end

new text begin (1) outline a single point of issuance system in which road authorities applying
for state water permits would interact with a single state agency serving as the sole
intermediary on behalf of all state agencies with an interest in a road authority's water
permit application;
new text end

new text begin (2) provide a goal for the maximum number of days that the state believes are
necessary to issue final water permitting decisions;
new text end

new text begin (3) identify how state entities with current oversight authority over water permitting
decisions would allocate resources to accommodate a single point of issuance system; and
new text end

new text begin (4) suggest strategies to enhance the coordination of federal and state water
permitting information gathering and decision-making.
new text end

Sec. 70. new text begin RULE CHANGE.
new text end

new text begin The commissioner shall amend Minnesota Rules, part 7400.5300, subpart 3, to
remove the words "from Minnesota" and to allow a dealer to sell a junked vehicle as
described in subpart 3 to a purchaser whom the dealer verifies is a licensed scrap metal
processor. The commissioner must comply with Minnesota Statutes, section 14.389,
subdivision 5, in adopting the amendment.
new text end

Sec. 71. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
in column A to the references listed in column B. The revisor shall also make necessary
cross-reference changes in Minnesota Statutes consistent with the renumbering.
new text end

	new text begin Column A new text end	new text begin Column B new text end
	new text begin 169.011, subdivision 83 new text end	new text begin 168B.011, subdivision 12a new text end
	new text begin 169.041 new text end	new text begin 168B.035 new text end
	new text begin 169.64, subdivision 5 new text end	new text begin 168B.16 new text end
	new text begin 169.86, subdivision 8 new text end	new text begin 168B.15 new text end
	new text begin 465.75 new text end	new text begin 168B.14 new text end
	new text begin 514.18, subdivision 1a new text end	new text begin 168B.045 new text end

Sec. 72. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, sections 169.441, subdivision 5; 169.445, subdivision 2;
and 169.454, subdivision 10, new text end new text begin are repealed.
new text end