SF 3496

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

A bill for an act
relating to motor carriers; amending requirements for household goods motor
carriers, including changes from system of permits to registration; removing
language governing obsolete permits; making conforming and clarifying
changes; amending Minnesota Statutes 2006, sections 168.013, subdivision 1e;
174.64, subdivisions 2, 4; 174.66; 221.011, subdivisions 8, 23, by adding a
subdivision; 221.025; 221.026; 221.031, subdivision 1; 221.036, subdivisions
1, 3; 221.131; 221.132; 221.141, subdivision 4; 221.185; 221.221, subdivision
3; 221.291, subdivision 4; proposing coding for new law in Minnesota Statutes,
chapter 221; repealing Minnesota Statutes 2006, sections 174.65; 221.011,
subdivisions 24, 25, 28, 29, 38, 39, 41, 44, 45; 221.0252, subdivision 7; 221.072;
221.111; 221.121; 221.122; 221.123; 221.131, subdivisions 2a, 3; 221.141,
subdivision 6; 221.151; 221.152; 221.153, subdivisions 1, 2; 221.161; 221.171;
221.172, subdivisions 3, 4, 5, 6, 7, 8; 221.296, subdivisions 3, 4, 5, 6, 7, 8.

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

ARTICLE 1

HOUSEHOLD GOODS MOTOR CARRIERS

Section 1.

Minnesota Statutes 2006, section 221.011, subdivision 23, is amended to
read:

Subd. 23.

Household goods.

"Household goods" means personal effects and
property used or to be used by the owner in the owner's in a dwelling when the effects
and property are a part of the equipment or supply of the dwelling; furniture, fixtures,
equipment and property of business places and institutions, public or private, when a part
of the stock, equipment, supplies or property of such establishments.

Sec. 2.

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

Subd. 23a.

Household goods motor carrier.

(a) "Household goods motor carrier"
means, in general, a motor carrier that, in the ordinary course of its business of providing
transportation of household goods within the state of Minnesota, offers some or all of
the following additional services:

(1) binding and nonbinding estimates;

(2) inventorying;

(3) protective packing and unpacking of individual items at personal dwellings; or

(4) loading and unloading at personal dwellings.

(b) A household goods motor carrier does not include any motor carrier providing
transportation of household goods in containers or trailers that are entirely loaded and
unloaded by an individual other than an employee or agent of the motor carrier.

Sec. 3.

[221.0253] HOUSEHOLD GOODS MOTOR CARRIERS;
REGISTRATION.

Subdivision 1.

Registration required.

No person may operate as a household
goods motor carrier unless the person has been issued a certificate of registration by
the commissioner.

Subd. 2.

Registration statement.

A person who wishes to operate as a household
goods motor carrier shall file a complete and accurate registration statement with the
commissioner. A registration statement must be on a form provided by the commissioner
and include:

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

(2) the registrant's mailing address and business telephone number;

(3) the registrant's United States Department of Transportation number;

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

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

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

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

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

(9) the summary of the registrant's arbitration program, described in Code of Federal
Regulations, title 49, section 375.211, paragraph (b), as required under section 221.0255.

Subd. 3.

Signature required.

A registration statement must be signed by a corporate
officer, general partner, limited liability company board member, or sole proprietor.

Subd. 4.

Registration fee.

An initial fee of $200 must be paid at the time the
registration statement is filed with the commissioner. The commissioner shall deposit all
revenues received under this subdivision in the trunk highway fund.

Subd. 5.

Certificate of registration; issuance.

(a) The commissioner shall issue
a certificate of registration to a registrant who does not have an unsatisfactory safety
rating with the state or United States Department of Transportation and who has met
the requirements of this section.

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

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

Subd. 6.

Duration.

A certificate of registration is not assignable or transferable, and
is valid until it is suspended, revoked, or canceled.

Subd. 7.

Obligation to keep information current.

A registrant shall notify the
commissioner in writing within 30 days of any change in the information required under
subdivision 2.

Subd. 8.

Suspension and cancellation of registration.

(a) The commissioner shall
suspend or cancel the registration of a household goods motor carrier who fails to file with
the commissioner or maintain the insurance or bond required under section 221.141.

(b) The commissioner shall immediately suspend the registration of a household
goods motor carrier who receives an unsatisfactory safety rating. Within 30 days of
receiving a written request from the household goods motor carrier, the commissioner
shall conduct one follow-up compliance audit to determine if the safety rating of the motor
carrier should be changed, or if the suspension should be rescinded. The commissioner
may conduct additional compliance reviews.

(c) The commissioner may suspend or cancel the registration of a household goods
motor carrier who fails to maintain an arbitration program or comply with a binding
arbitration decision under section 221.0255, subdivision 1.

(d) The commissioner shall follow the procedures under section 221.185 for any
suspension or cancellation under this subdivision.

(e) A person may not operate as a household goods motor carrier while the person's
registration is suspended or canceled.

Sec. 4.

[221.0255] HOUSEHOLD GOODS MOTOR CARRIERS; CONSUMER
PROTECTION.

Subdivision 1.

Arbitration, estimates, release of goods.

(a) Code of Federal
Regulations, title 49, section 375.103, is incorporated by reference, except that "household
goods" and "household goods motor carrier" have the meanings given in section 221.011.
Code of Federal Regulations, title 49, sections 375.211, 375.401, 375.403, 375.405,
375.407, 375.603, and 375.703, are incorporated by reference and apply to household
goods motor carriers. Cross-references within the incorporated sections to other sections
or paragraphs not incorporated in this subdivision are not incorporated by reference.

(b) Sections 572.08 to 572.30 apply to the arbitration program required under Code
of Federal Regulations, title 49, section 375.211.

(c) For an original estimate provided under Code of Federal Regulations, title 49,
sections 375.401, paragraph (a); 375.403, paragraph (a)(1); and 375.405, paragraph (b)(1),
a household goods motor carrier may provide an original binding or nonbinding estimate
to the shipper without a physical survey, if the estimate is based on (1) services to be
provided and (2) the anticipated number of hours and number of employees required.

(d) For a revised estimate provided under Code of Federal Regulations, title 49,
sections 375.403, paragraph (a)(6) and 375.405, paragraph (b)(7), a household goods
motor carrier may provide a revised binding or nonbinding estimate to the shipper based
on revised services to be provided and the revised anticipated number of hours and
number of employees required.

(e) A household goods motor carrier's total charges to the shipper under paragraphs
(c) and (d) must meet the requirements under this subdivision.

Subd. 2.

Impracticable operations.

(a) For purposes of this subdivision,
"impracticable operations" means additional services required by a household goods
motor carrier (1) when operating conditions and reasonably unforeseen events make
it physically impossible for the carrier to perform pickup or delivery with the carrier's
normally assigned road-haul equipment, (2) when the use of smaller equipment or
additional labor to complete pickup or delivery of a shipment is required, or (3) when
additional hours of service are required because of reasonably unpredictable changes in
weather or road conditions.

(b) A household goods motor carrier may require payment of additional charges up
to 15 percent above a binding or nonbinding estimate for impracticable operations. The
specific services or unforeseeable conditions considered to be impracticable operations
by the carrier must be defined in writing in the carrier's binding or nonbinding estimate
provided to the consumer. A household goods motor carrier is not required to file the
contractual definitions of "impracticable operations" with the commissioner.

Subd. 3.

Cause of action.

A person who is injured by a household goods motor
carrier due to a violation under subdivision 1, and who is unable to obtain relief due to the
failure of the motor carrier to maintain an arbitration program or comply with a binding
arbitration decision under subdivision 1, has a cause of action against the household goods
motor carrier. Damages may be awarded to the consumer for economic loss, including
damage, destruction, and loss of use of personal property, and reasonable attorney fees.

Subd. 4.

Advertising.

A household goods motor carrier must include in all
advertisements for all services the following elements:

(1) the name or trade name of the household goods motor carrier, as it appears on
the certificate of registration issued by the commissioner under section 221.0253, or the
name or trade name of the motor carrier under whose operating authority the advertised
service will originate; and

(2) the United States Department of Transportation number of the household goods
motor carrier.

Sec. 5. HOUSEHOLD GOODS MOTOR CARRIERS; EXPIRATION AND
CONVERSION OF PERMITS.

Subdivision 1.

Expiration of permits.

Any permit issued by the commissioner
before August 1, 2008, that authorizes for-hire transportation of household goods in
Minnesota is valid through December 31, 2008.

Subd. 2.

Conversion to registration.

A holder of a permit that expires under
subdivision 1 who wishes to continue as a household goods motor carrier shall meet the
requirements of section 221.0253 before January 1, 2009. Prior to January 1, 2009, the
commissioner shall not charge the registration fee under section 221.0253, subdivision
4, for a permit holder to obtain a registration certificate.

ARTICLE 2

REPEAL OF OBSOLETE PERMITS AND CONFORMING CHANGES

Section 1.

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

Subd. 1e.

Truck; tractor; combination; exceptions.

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

Minnesota Base Rate Schedule

Scheduled taxes include five percent

surtax provided for in subdivision 14

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

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

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

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

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

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

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

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

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

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

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

Sec. 2.

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

Subd. 2.

Specific functions and powers.

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

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

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

(3) issuing permits.

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

Sec. 3.

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

Subd. 4.

Petition, notice, and hearing.

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

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

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

Sec. 4.

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

174.66 CONTINUATION OF CARRIER RULES.

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

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

(2) section 219.40; and

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

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

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

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

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

Sec. 5.

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

Subd. 8.

Permit.

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

Sec. 6.

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

221.025 EXEMPTIONS.

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

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

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

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

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

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

(6) the delivery of agricultural lime;

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

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

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

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

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

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

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

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

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

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

Sec. 7.

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

221.026 MOTOR CARRIER OF PROPERTY; EXEMPTIONS.

Subdivision 1.

Registration.

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

Subd. 2.

Exemptions from requirements.

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

Subd. 3.

Safety regulations.

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

Subd. 4.

Suspension and cancellation of registration.

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

Subd. 5.

Local regulation.

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

Sec. 8.

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

Subdivision 1.

Powers, duties, reports, limitations.

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

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

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

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

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

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

Sec. 9.

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

Subdivision 1.

Order.

The commissioner may issue an order requiring violations
to be corrected and administratively assessing monetary penalties for a violation of (1)
section 221.021; (2) section 221.0255; (3) section 221.033, subdivision 2b; (3) section
221.151; (4) section 221.171; (5) (4) section 221.141; or (6) (5) rules of the commissioner
relating to the transportation of hazardous waste, motor carrier operations, or insurance, or
tariffs and accounting. An order must be issued as provided in this section.

Sec. 10.

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

Subd. 3.

Amount of penalty; considerations.

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

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

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

(1) the willfulness of the violation;

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

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

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

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

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

Sec. 11.

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

221.131 CARRIER ANNUAL VEHICLE REGISTRATION; FEES,
IDENTIFICATION CARD FOR MOTOR CARRIERS OF PASSENGERS.

Subdivision 1.

Permit Registration renewal.

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

Subd. 2.

Annual vehicle registration; fee.

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

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

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

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

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

Subd. 2a.

Vehicle identification.

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

Subd. 3.

Certificate carrier; annual vehicle registration.

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

Subd. 4.

Floater card; fee.

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

Subd. 5.

Limitation.

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

Sec. 12.

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

221.132 PREPAID TEMPORARY VEHICLE IDENTIFICATION CARD.

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

Sec. 13.

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

Subd. 4.

Household goods mover motor carrier.

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

Sec. 14.

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

221.185 OPERATING AUTHORITY; SUSPENSION, CANCELLATION.

Subdivision 1.

Grounds Order for suspension.

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

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

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

(3) pay an administrative penalty under section 221.036.

Subd. 2.

Notice of suspension.

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

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

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

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

Subd. 2a.

Notice of suspension; effective date.

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

Subd. 3.

Suspension rescission.

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

Subd. 3a.

Hearing.

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

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

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

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

Subd. 4.

Grounds for cancellation.

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

Subd. 5.

Notice of cancellation.

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

Subd. 5a.

Reinstatement after cancellation.

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

Subd. 9.

New petition.

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

Sec. 15.

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

Subd. 3.

Delegated powers.

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

Sec. 16.

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

Subd. 4.

Operating without registration or permit.

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

Sec. 17. REVISION OF RULES.

The commissioner of transportation shall repeal, amend, and adopt revisions to rules
relating to household goods contained in Minnesota Rules, chapters 7800 and 7805, and
may use the expedited process for adopting rules under Minnesota Statutes, section 14.389.

Sec. 18. INSTRUCTION TO REVISOR.

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

Sec. 19. REPEALER.

Minnesota Statutes 2006, sections 174.65; 221.011, subdivisions 24, 25, 28, 29,
38, 39, 41, 44, and 45; 221.0252, subdivision 7; 221.072; 221.111; 221.121; 221.122;
221.123; 221.131, subdivisions 2a and 3; 221.141, subdivision 6; 221.151; 221.152;
221.153, subdivisions 1 and 2; 221.161; 221.171; 221.172, subdivisions 3, 4, 5, 6, 7, and
8; and 221.296, subdivisions 3, 4, 5, 6, 7, and 8, are repealed.