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SF 87

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 08/12/2015 03:36pm

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Current Version - 1st Engrossment

A bill for an act
relating to transportation; capital investment; taxes; amending provisions
governing transportation finance; establishing gross receipts motor fuels tax;
amending vehicle registration tax and metropolitan area transit sales tax;
amending distribution of highway user fund and county state-aid funding;
authorizing sale and issuance of trunk highway bonds; requiring a report;
appropriating money;amending Minnesota Statutes 2014, sections 16E.15,
subdivision 2; 115A.908; 161.081, subdivision 1; 161.082, subdivision 1,
by adding a subdivision; 161.083; 161.088, subdivisions 3, 4, 5; 161.20, by
adding a subdivision; 161.231; 161.46, subdivision 2; 162.07, subdivision
1a; 168.013, subdivisions 1a, 8; 168.053, subdivision 1; 168.31, by adding a
subdivision; 168.33, subdivisions 2, 7; 168.54, subdivision 5; 168D.06; 174.03,
subdivisions 10, 11; 174.12, subdivision 5; 174.42, by adding a subdivision;
174.52, subdivisions 4a, 5; 222.50, subdivision 7; 270.80, subdivisions 1, 2, 3,
4, by adding subdivisions; 270.81, subdivisions 1, 3, by adding a subdivision;
270.82; 270.83, subdivisions 1, 2; 270.84; 270.86; 270.87; 272.02, subdivision 9;
275.025, subdivisions 1, 4; 296A.061; 296A.11; 296A.12; 296A.16; 297A.815,
subdivision 3; 297A.94; 297A.992, subdivisions 1, 4, 5, 6; 297B.09, subdivision
1; 299D.09; 357.021, subdivision 7; 360.024; 360.305, subdivision 4; 473.167;
473.915; Laws 2014, chapter 312, article 11, section 33; proposing coding for
new law in Minnesota Statutes, chapters 161; 174; 219; 296A; 297A; 299D; 473;
repealing Minnesota Statutes 2014, sections 161.081, subdivision 3; 270.81,
subdivision 4; 270.83, subdivision 3; 473.4051, subdivision 2; Minnesota Rules,
parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17, 17a, 18, 19,
20, 21; 8106.0300, subparts 1, 3; 8106.0400; 8106.0500; 8106.0600; 8106.0700;
8106.0800; 8106.9900.

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

ARTICLE 1

TRUNK HIGHWAY BONDING

Section 1. BOND SALE AUTHORIZATION.

To provide the money appropriated in this article from the bond proceeds account in
the trunk highway fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $1,001,000,000 in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the
Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested
by the commissioner of transportation. The proceeds of the bonds, except accrued interest
and any premium received from the sale of the bonds, must be deposited in the bond
proceeds account in the trunk highway fund.

Sec. 2. BOND APPROPRIATIONS.

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

SUMMARY
Department of Transportation
$
1,000,000,000
Department of Management and Budget
1,000,000
TOTAL
$
1,001,000,000
APPROPRIATIONS

Sec. 3. DEPARTMENT OF
TRANSPORTATION CORRIDORS OF
COMMERCE

$
800,000,000

(a) The appropriation in this section is
to the commissioner of transportation for
the corridors of commerce program under
Minnesota Statutes, section 161.088, and is
available in the amounts of $200,000,000 in
each fiscal year from 2016 to 2019.

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

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

Sec. 4. TRANSPORTATION ECONOMIC
DEVELOPMENT PROGRAM

$
200,000,000

(a) This appropriation is for the transportation
economic development program under
Minnesota Statutes, section 174.12, and is
available in the amounts of $50,000,000 in
each fiscal year from 2016 to 2019.

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

Sec. 5. BOND SALE EXPENSES

$
1,000,000

This appropriation is to the commissioner
of management and budget for bond sale
expenses under Minnesota Statutes, sections
16A.641, subdivision 8; and 167.50,
subdivision 4.

Sec. 6. EFFECTIVE DATE.

This article is effective July 1, 2015.

ARTICLE 2

GROSS RECEIPTS TAX

Section 1.

Minnesota Statutes 2014, section 296A.061, is amended to read:


296A.061 CANCELLATION OR NONRENEWAL OF LICENSES.

The commissioner may cancel a license or not renew a license if one of the following
conditions occurs:

(1) the license holder has not filed a petroleum tax return or report for at least one year;

(2) the license holder has not filed a gross receipts tax return for at least one year;

(3) the license holder has not reported any petroleum tax liability or gross receipts
tax liability
on the license holder's returns or reports for at least one year; or

(3) (4) the license holder requests cancellation of the license.

Sec. 2.

[296A.085] MOTOR FUELS GROSS RECEIPTS TAX.

Subdivision 1.

Imposition.

A tax is imposed on the wholesale business of selling
the means or substance used for propelling vehicles on the highways of this state. The tax
is imposed at the rate of 6.5 percent of gross receipts derived by a distributor from the first
sale at wholesale of gasoline, gasoline blended with ethanol, agricultural alcohol gasoline,
and special fuels within this state for use in motor vehicles.

Subd. 2.

Exemptions.

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

Subd. 3.

Conversion of tax rate.

(a) Annually on or before August 1, the
commissioner shall determine the applicable gross receipts motor fuels tax rate per gallon.
The tax per gallon shall be the greater of either:

(1) 6.5 percent of $2.50; or

(2) 6.5 percent of the prior fiscal year's average wholesale gasoline price per
gallon in Minnesota for all grades by refiners, as published by the United States Energy
Information Administration and rounded to the nearest tenth of a cent per gallon. The
wholesale price used must not include any tax or fee assessed by the state of Minnesota
or the United States government.

(b) The announced rate is effective for a 12-month period consisting of the next
October 1 to September 30. The commissioner shall publish on the department's Web site
the total of the gross receipts tax and the excise tax.

Subd. 4.

Administrative provisions.

Except as otherwise provided in this chapter,
the relevant audit, assessment, refund, penalty, interest, enforcement, collection remedies,
appeal, and administrative provisions of chapter 289A apply to taxes imposed under
this section.

Subd. 5.

Deposit of revenues.

The commissioner shall deposit the revenues from
the gross receipts tax into the highway user tax distribution fund.

EFFECTIVE DATE.

This section is effective October 1, 2015, and applies to
gross receipts attributable to the described products and derived by a distributor on or
after that day.

Sec. 3.

Minnesota Statutes 2014, section 296A.11, is amended to read:


296A.11 SELLER MAY COLLECT TAX.

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

Sec. 4.

Minnesota Statutes 2014, section 296A.12, is amended to read:


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

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

Sec. 5.

Minnesota Statutes 2014, section 296A.16, is amended to read:


296A.16 REFUND OR CREDIT.

Subdivision 1.

Credit or refund of gasoline or special fuel tax paid.

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

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

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

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

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

(5) in error;

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

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

Subd. 2.

Fuel used in other vehicle; claim for refund.

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

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

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

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

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

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

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

Subd. 3.

Destruction by accident; refund to dealer.

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

(1) the tax paid by the distributor on, or gross receipts from the sale of, gasoline,
undyed diesel fuel, or undyed kerosene destroyed by accident while in the possession of
the dealer; or

(2) the tax paid by a distributor or special fuels dealer on, or gross receipts from the
sale of,
other special fuels destroyed by accident while in the possession of the dealer.

Subd. 4.

Refrigerator units; refunds.

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

Subd. 4a.

Undyed kerosene; refunds.

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

Subd. 4b.

Racing gasoline; refunds.

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

Subd. 5.

Qualifying service station credit.

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

Subd. 7.

Civil penalty for filing false claim.

A person who violates section
296A.23, subdivision 1, shall forfeit the full amount of the claim. In addition, a person who
is convicted under section 296A.23 for filing a false statement or claim shall, in addition
to any criminal penalties imposed, be prohibited from filing with the commissioner any
claim for refund upon gasoline purchased within six months after such conviction.

Subd. 8.

Appropriation.

There is appropriated to the persons entitled to refund or
credit under this section, from the fund or account in the state treasury to which the money
was credited, an amount sufficient to make the credit or refund.

Sec. 6. REVISOR'S INSTRUCTION.

In Minnesota Statutes, the revisor of statutes shall rename Minnesota Statutes,
chapter 296A, to be "Tax on Petroleum and Other Fuels; Gross Receipts Tax."

ARTICLE 3

VEHICLE REGISTRATION TAX

Section 1.

Minnesota Statutes 2014, section 168.013, subdivision 1a, is amended to read:


Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined
in section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax
shall be an amount equal to a combination of the following: $10 for those vehicles with
registration periods beginning on or before June 30, 2018; and $20 for those vehicles
with registration periods on or after July 1, 2018,
plus an additional tax equal to 1.25 a
percentage of 1.5
percent of the base value as specified in paragraph (h).

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

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

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

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

FROM
TO
$
0
$ 199.99
$
200
$ 399.99

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

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

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

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

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

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

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies to any tax for a registration period that begins on or after September 1, 2015.

ARTICLE 4

METROPOLITAN TRANSIT IMPROVEMENT AREA SALES TAX

Section 1.

Minnesota Statutes 2014, section 297A.992, subdivision 1, is amended to
read:


Subdivision 1.

Definitions.

For purposes of this section, the following terms have
the meanings given them:

(1) "metropolitan transportation area" means the counties participating in the joint
powers agreement under subdivision 3;

(2) "eligible county" means the county of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, or Washington; and

(3) "committee" means the Grant Evaluation and Ranking System (GEARS)
Committee;

(4) "minimum guarantee county" means any metropolitan county or eligible county
that is participating in the joint powers agreement under subdivision 3, whose proportion
of the annual sales tax revenue under this section collected within that county is less
than or equal to three percent; and

(5) "population" means the population, as defined in section 477A.011, subdivision
3
, estimated or established by July 15 of the year prior to the calendar year in which
the representatives will serve on the Grant Evaluation and Ranking System Committee
established under subdivision 5
.

Sec. 2.

Minnesota Statutes 2014, section 297A.992, subdivision 4, is amended to read:


Subd. 4.

Joint powers board.

(a) The joint powers board must consist of one
or more commissioners of each county that is in the metropolitan transportation area,
appointed by its county board, and the chair of the Metropolitan Council, who must have
voting rights, subject to subdivision 3, clause (4). The joint powers board has the powers
and duties provided in this section and section 471.59.

(b) The joint powers board may utilize no more than three-fourths of one percent of
the proceeds of the taxes imposed under this section for ordinary administrative expenses
incurred in carrying out the provisions of this section. Any additional administrative
expenses must be paid by the participating counties.

(c) The joint powers board may establish a technical advisory group that is separate
from the GEARS Committee
. The group must consist of representatives of cities, counties,
or public agencies, including the Metropolitan Council. The technical advisory group
must be used solely for technical consultation purposes.

Sec. 3.

Minnesota Statutes 2014, section 297A.992, subdivision 5, is amended to read:


Subd. 5.

Grant application and awards; Grant Evaluation and Ranking System
(GEARS) Committee
.

(a) The joint powers board shall establish a grant application
process and identify the amount of available funding for grant awards. Grant applications
must be submitted in a form prescribed by the joint powers board. An applicant must
provide, in addition to all other information required by the joint powers board, the
estimated cost of the project, the amount of the grant sought, possible sources of funding
in addition to the grant sought, and identification of any federal funds that will be utilized
if the grant is awarded. A grant application seeking transit capital funding must identify
the source of money necessary to operate the transit improvement.

(b) The joint powers board shall establish a timeline and procedures for the award of
grants, and may award grants only to the state and political subdivisions. The board shall
define objective criteria for the award of grants, which must include, but not be limited to,
consistency with the most recent version of the transportation policy plan adopted by the
Metropolitan Council under section 473.146. The joint powers board shall maximize the
availability and use of federal funds in projects funded under this section.

(c) The joint powers board shall establish a GEARS Committee, which must consist
of:

(1) one county commissioner from each county that is in the metropolitan
transportation area, appointed by its county board;

(2) one elected city representative from each county that is in the metropolitan
transportation area;

(3) one additional elected city representative from each county for every additional
400,000 in population, or fraction of 400,000, in the county that is above 400,000 in
population; and

(4) the chair of the Metropolitan Council Transportation Committee.

(d) Each city representative must be elected at a meeting of cities in the metropolitan
transportation area, which must be convened for that purpose by the Association of
Metropolitan Municipalities.

(e) The committee shall evaluate grant applications following objective criteria
established by the joint powers board, and must provide to the joint powers board a
selection list of transportation projects that includes a priority ranking.

(f) A grant award for a transit project located within the metropolitan area, as defined
in section 473.121, subdivision 2, may be funded only after the Metropolitan Council
reviews the project for consistency with the transit portion of the Metropolitan Council
policy plan and one of the following occurs:

(1) the Metropolitan Council finds the project to be consistent;

(2) the Metropolitan Council initially finds the project to be inconsistent, but after a
good faith effort to resolve the inconsistency through negotiations with the joint powers
board, agrees that the grant award may be funded; or

(3) the Metropolitan Council finds the project to be inconsistent, and submits the
consistency issue for final determination to a panel, which determines the project to be
consistent. The panel is composed of a member appointed by the chair of the Metropolitan
Council, a member appointed by the joint powers board, and a member agreed upon by
both the chair and the joint powers board.

(g) (d) Grants must be funded by the proceeds of the taxes imposed under this
section and under section 297A.9925, bonds, notes, or other obligations issued by the
joint powers board under subdivision 7.

(h) Notwithstanding the provisions of this section except subdivision 6a, of
the revenue collected under this section, the joint powers board shall allocate to the
Metropolitan Council, in fiscal years 2012 and 2013, an amount not less than 75 percent of
the net cost of operations for those transitways that were receiving metropolitan sales tax
funds through an operating grant agreement on June 30, 2011.

(i) The Metropolitan Council shall expend any funds allocated under paragraph (h)
for the operations of the specified transitways solely within those counties that are in the
metropolitan transportation area.

(j) (e) Nothing in paragraph (h) or (i) this section prevents grant awards to
the Metropolitan Council for capital and operating assistance for transitways and
park-and-ride facilities.

Sec. 4.

Minnesota Statutes 2014, section 297A.992, subdivision 6, is amended to read:


Subd. 6.

Allocation of grant awards.

(a) The board must allocate grant awards
only for the following transit purposes:

(i) (1) capital improvements to transitways, including, but not limited to, highway
bus rapid transit,
commuter rail rolling stock, light rail vehicles, and transitway buses,
provided that the 40 percent maximum does not apply to Robert Street transitway or
Riverview corridor
;

(ii) (2) capital costs for park-and-ride facilities, as defined in section 174.256,
subdivision 2;

(iii) (3) feasibility studies, planning, alternatives analyses, environmental studies,
engineering, property acquisition for transitway purposes, and construction of transitways;
and

(iv) (4) 50 percent of net operating assistance for cost of transitways that commenced
revenue operations before September 30, 2015;

(5) 100 percent of net operating cost of the Robert Street transitway; and

(6) capital and operating costs for any transitway improvement or transitway with
total grant awards under this clause not to exceed tax proceeds remitted under section
299A.9925, subdivision 4, clause (1). Only the Metropolitan Council or a county located
in the metropolitan transportation area may apply for a grant under this clause
.

(b) The joint powers board must annually award grants to each minimum guarantee
county in an amount no less than the amount of sales tax revenue collected within that
county.

(c) No more than 1.25 percent of the total awards may be annually allocated for
planning, studies, design, construction, maintenance, and operation of pedestrian programs
and bicycle programs and pathways.

Sec. 5.

[297A.9925] METROPOLITAN TRANSIT IMPROVEMENT AREA
TRANSIT SALES AND USE TAX; RATE; IMPOSITION; USES; PRIORITIES.

Subdivision 1.

Definitions.

For purposes of this section, the following terms have
the following meanings:

(1) "metropolitan transit improvement area" or "area" means the counties of Anoka,
Dakota, Hennepin, Ramsey, and Washington;

(2) "Metropolitan Council" or "council" means the Metropolitan Council established
by section 473.123; and

(3) "local governmental unit" means any county, city, town, school district, special
district, or other political subdivisions or public corporation, other than the council or a
metropolitan agency, lying in whole or in part within the metropolitan transit improvement
area.

Subd. 2.

Metropolitan transit improvement area transit sales tax imposition;
rate.

(a) Notwithstanding section 297A.99, subdivisions 1, 2, and 3, 477A.016, or any
other law, a metropolitan area transit sales and use tax is imposed at a rate of three-quarters
of one percent on retail sales and uses taxable under this chapter occurring within the
metropolitan transit improvement area.

(b) The taxes imposed under this subdivision are not included in determining if the
total tax on lodging in the city of Minneapolis exceeds the maximum allowed tax under
Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special Session
chapter 5, article 12, section 87, and Laws 2012, chapter 299, article 3, section 3, or in
determining a tax that may be imposed under any other limitations.

Subd. 3.

Administration; collection; enforcement.

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

Subd. 4.

Distribution of net revenues.

After deducting costs of collection and other
costs under section 297A.99, subdivision 11, the commissioner of revenue shall remit:

(1) to the Counties Transit Improvement Board, an amount equal to 8.5 percent of
the net proceeds of the tax imposed under subdivision 2; and

(2) to the Metropolitan Council, the remaining proceeds.

Subd. 5.

General purpose; consistency with transportation policy plan.

(a) The
Metropolitan Council shall utilize the proceeds of the tax imposed under subdivision
2 for transit purposes described under subdivision 7, within the metropolitan transit
improvement area.

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

Subd. 6.

Priorities.

The council shall allocate revenues from the taxes imposed
under this section in conformance with the following priority order:

(1) payment of debt service necessary for the fiscal year on bonds or other
obligations secured by revenues from the tax imposed in this section;

(2) proportional distribution of an amount equal to one-eighth of the total net
proceeds of the taxes imposed under subdivision 2 and under section 297A.992,
subdivision 2, so that the share of each county in the metropolitan transit improvement
area is based on the proportion of taxes generated in that county. Grant awards under
this clause must be used by Hennepin County only for transit purposes, but by all other
counties for any transit purpose or any transportation purpose that has a nexus to transit or
transit-oriented development; and

(3) as otherwise authorized under subdivision 7.

Subd. 7.

Use of tax proceeds.

(a) After deducting the amount necessary under
subdivision 6, clauses (1) and (2), the council shall allocate remaining revenues from the
tax imposed in this section for the following purposes:

(1) operating and capital costs to preserve existing bus services that are in
conformance with regional transit performance standards as specified in the council's
transportation policy plan;

(2) 100 percent of the net operating costs of arterial bus rapid transit lines in operation
on September 30, 2015, and 50 percent of the net operating costs of other transitways;

(3) grants required under paragraph (b);

(4) operating and capital costs for transit expansion in accordance with the transit
portion of the council's policy transit plan, including, but not limited to:

(i) expansion and upgrades of regular route and commuter bus service provided
by metropolitan transit and replacement services under section 473.388, with overall
expansion of service by an annual average rate of four percent;

(ii) development of arterial bus rapid transit, transitways, and streetcar systems; and

(iii) maintenance of affordable transit fares;

(5) operating and capital costs for expansion and improvement of regional
transitways and streetcars;

(6) to transit authorities to establish, replace, or modify transit shelters to conform
with design specifications and maintenance requirements within the meaning of section
473.41;

(7) to the Center for Transportation Studies, University of Minnesota, $500,000
annually for research to improve accessibility, operational efficiency, and safety of transit
systems; and

(8) any other costs payable in accordance with subdivisions 5, 6, and 7, which
may include, but are not limited to, transit operations, capital improvements, design,
engineering and environmental work, acquisition of real property, transit planning and
feasibility studies, and to provide grants to local governmental units for transit purposes,
including streetcars, or for bicycle and pedestrian projects.

(b) The council shall make available an amount equal to ten percent of the revenues
from the tax imposed in this section and in section 297A.992 through grants to local
units of government within the metropolitan transit improvement area for construction
and maintenance of regional bicycle, trail, and pedestrian infrastructure for safe routes to
school infrastructure and for active transportation programs under section 174.38. The
council shall establish a grant program, criteria, and oversight procedures.

EFFECTIVE DATE.

This section is effective for sales and purchases made after
September 30, 2015, and applies in the counties of Anoka, Dakota, Hennepin, Ramsey,
and Washington.

Sec. 6. REPEALER.

Minnesota Statutes 2014, section 473.4051, subdivision 2, is repealed.

EFFECTIVE DATE.

This section is effective July 1, 2015.

ARTICLE 5

OTHER TAXES, FEES, AND TRANSFERS

Section 1.

Minnesota Statutes 2014, section 115A.908, is amended to read:


115A.908 MOTOR VEHICLE TRANSFER FEE.

Subdivision 1.

Fee charged.

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

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

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

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

(b) A surcharge of ...... is imposed on each fee charged under paragraph (a).

Subd. 2.

Deposit of revenue.

(a) Fee revenue collected under this section shall be
credited to the environmental fund.

(b) The commissioner of transportation shall deposit the proceeds of the surcharge
as follows:

(1) 50 percent in the small city streets and bridges account under section 174.54,
subdivision 1; and

(2) 50 percent in the larger city streets and bridges account under section 174.54,
subdivision 2.

Sec. 2.

Minnesota Statutes 2014, section 161.081, subdivision 1, is amended to read:


Subdivision 1.

Distribution of five percent.

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

(b) That apportionment is further distributed as follows:

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

(2) 16 percent to the town bridge account, which is created in the state treasury 56.5
percent to the county state-aid highway fund, consisting of: (i) 30.5 percent to the town
road account created in section 162.081; (ii) 16 percent to the town bridge account created
in the state treasury; and (iii) ten percent to the county municipal accounts for purposes
described in section 162.08
; and

(3) 53.5 percent to the flexible highway account created in subdivision 3 (2) 43.5
percent to the municipal state-aid street fund
.

EFFECTIVE DATE.

This section is effective July 1, 2015.

Sec. 3.

Minnesota Statutes 2014, section 161.082, subdivision 1, is amended to read:


Subdivision 1.

Creation of account; rules.

(a) The county turnback account is
created in the state treasury, consisting of money allotted or appropriated to the account
that will be used for the restoration of trunk highways that have reverted or that will
revert to counties.

(b) Except as provided in this section and in section 161.081, all money accruing
to the county turnback account shall be expended in accordance with rules of the
commissioner of transportation in paying a county for the restoration of former trunk
highways, or portions thereof, that have reverted to the county in accordance with law, and
have become a part of the county state-aid highway system.

Sec. 4.

Minnesota Statutes 2014, section 161.082, is amended by adding a subdivision
to read:


Subd. 1a.

Budget submission.

As part of each biennial budget submission to the
legislature, the commissioner shall include a request for an appropriation to the county
turnback account.

Sec. 5.

Minnesota Statutes 2014, section 161.083, is amended to read:


161.083 MUNICIPAL TURNBACK ACCOUNT, EXPENDITURE.

Subdivision 1.

Creation of account.

The municipal turnback account is created in
the state treasury, consisting of money allotted or appropriated to the account that will
be used for the restoration of trunk highways that have reverted or that will revert to
cities.
Except as hereinafter provided in this section, all money accruing to the municipal
turnback account shall be expended in accordance with rules of the commissioner of
transportation in paying a municipality having a population of 5,000 or more for the
reconstruction and improvement of former trunk highways, or portions thereof, that have
reverted to such municipality in accordance with law, and have become a part of the
municipal state-aid street system.

Subd. 2.

Biennial budget submission.

As part of each biennial budget submission
to the legislature, the commissioner shall include a request for an appropriation to the
municipal turnback account.

Sec. 6.

Minnesota Statutes 2014, section 162.07, subdivision 1a, is amended to read:


Subd. 1a.

Apportionment sum and excess sum.

(a) For purposes of this
subdivision, "distribution amount" means the amount identified in section 162.06,
subdivision 1, after the deductions provided for in section 162.06 for administrative costs,
disaster account, research account, and state park road account.

(b) The apportionment sum is calculated by subtracting the excess sum, as calculated
in paragraph (c), from
as 68 percent of the distribution amount.

(c) The excess sum is calculated as the sum of revenue within 32 percent of the
distribution amount:.

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

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

(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the
percentage allocated to the county state-aid highway fund in fiscal year 2007.

(d) For purposes of this subdivision, the United States Consumer Price Index
identified in paragraph (c) is for all urban consumers, United States city average, as
determined by the United States Department of Labor.

EFFECTIVE DATE.

This section is effective October 1, 2015.

Sec. 7.

Minnesota Statutes 2014, section 168.33, subdivision 2, is amended to read:


Subd. 2.

Deputy registrars.

(a) The commissioner may appoint, and for cause
discontinue, a deputy registrar for any statutory or home rule charter city as the public
interest and convenience may require, without regard to whether the county auditor of
the county in which the city is situated has been appointed as the deputy registrar for the
county or has been discontinued as the deputy registrar for the county, and without regard
to whether the county in which the city is situated has established a county license bureau
that issues motor vehicle licenses as provided in section 373.32.

(b) The commissioner may appoint, and for cause discontinue, a deputy registrar
for any statutory or home rule charter city as the public interest and convenience may
require, if the auditor for the county in which the city is situated chooses not to accept
appointment as the deputy registrar for the county or is discontinued as a deputy registrar,
or if the county in which the city is situated has not established a county license bureau
that issues motor vehicle licenses as provided in section 373.32.

(c) The commissioner may appoint, and for cause discontinue, the county auditor of
each county as a deputy registrar.

(d) Despite any other provision, a person other than a county auditor or a director
of a county license bureau, who was appointed by the registrar before August 1, 1976,
as a deputy registrar for any statutory or home rule charter city, may continue to serve
as deputy registrar and may be discontinued for cause only by the commissioner. The
county auditor who appointed the deputy registrars is responsible for the acts of deputy
registrars appointed by the auditor.

(e) Each deputy, before entering upon the discharge of duties, shall take and
subscribe an oath to faithfully discharge the duties and to uphold the laws of the state.

(f) If a deputy registrar appointed under this subdivision is not an officer or employee
of a county or statutory or home rule charter city, the deputy shall in addition give bond to
the state in the sum of $10,000, or a larger sum as may be required by the commissioner,
conditioned upon the faithful discharge of duties as deputy registrar.

(g) A corporation governed by chapter 302A or 317A may be appointed a deputy
registrar. Upon application by an individual serving as a deputy registrar and the giving of
the requisite bond as provided in this subdivision, personally assured by the individual or
another individual approved by the commissioner, a corporation named in an application
then becomes the duly appointed and qualified successor to the deputy registrar.

(h) Each deputy registrar appointed under this subdivision shall keep and maintain
office locations approved by the commissioner for the registration of vehicles and the
collection of taxes and fees on vehicles.

(i) The deputy registrar shall keep records and make reports to the commissioner as
the commissioner requires. The records must be maintained at the offices of the deputy
registrar. The records and offices of the deputy registrar must at all times be open to the
inspection of the commissioner or the commissioner's agents. The deputy registrar shall
report to the commissioner by the next working day following receipt all registrations
made and taxes and fees collected by the deputy registrar.

(j) The filing fee fees imposed under subdivision 7, paragraph (a), clauses (1) and
(3),
must be deposited in the treasury of the place for which appointed or, if not a public
official, a deputy shall retain the filing fee fees, but the registration tax and, any additional
fees for delayed registration the deputy registrar has collected, and the surcharge imposed
under subdivision 7, paragraph (a), clause (2),
the deputy registrar shall deposit by the next
working day following receipt in an approved state depository to the credit of the state
through the commissioner of management and budget. The place for which the deputy
registrar is appointed through its governing body must provide the deputy registrar with
facilities and personnel to carry out the duties imposed by this subdivision if the deputy
is a public official. In all other cases, the deputy shall maintain a suitable facility for
serving the public.

Sec. 8.

Minnesota Statutes 2014, section 168.33, subdivision 7, is amended to read:


Subd. 7.

Filing fees and surcharge; allocations.

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

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

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

(3) a $10 filing fee is imposed on every other type of vehicle transaction, including
pro rate transactions.

(b) Notwithstanding paragraph (a):

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

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

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

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

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

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

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

(ii) $1.50 must be deposited:

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

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

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

(i) 50 percent must be deposited in the small city streets and bridges account under
section 174.54, subdivision 1; and

(ii) 50 percent must be deposited in the larger city streets and bridges account under
section 174.54, subdivision 2; and

(3) of the fees collected under paragraph (a), clause (2) (3):

(i) $3.50 must be deposited in the general fund as follows:

(A) 50 percent to the small city streets and bridges account under section 174.54,
subdivision 1; and

(B) 50 percent to the large city streets and bridges account under section 174.54,
subdivision 2
;

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

(iii) $1.50 must be deposited:

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

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

Sec. 9.

Minnesota Statutes 2014, section 168.54, subdivision 5, is amended to read:


Subd. 5.

Proceeds to general fund.

The commissioner shall collect the proceeds
of the fee imposed under this section and deposit them in the general fund pursuant to
section 168A.31
:

(1) 50 percent to the small city streets and bridges account under section 174.54,
subdivision 1; and

(2) 50 percent to the larger city streets and bridges account under section 174.54,
subdivision 2
.

Sec. 10.

[174.54] CITY STREETS AND BRIDGES ACCOUNTS.

Subdivision 1.

Small city streets and bridges account.

A small city streets and
bridges account is created as a special revenue account and established in the state
treasury, consisting of money allotted, appropriated, or transferred through gift or grant
for the account. Money in the account must be appropriated to the commissioner of
transportation by law and apportioned among all the cities in the state that are not eligible
to receive municipal state aid and do not receive municipal state aid. The commissioner
shall apportion the money so that each city receives of the total amount the percentage that
its population bears to the total population of small cities in this state. Money apportioned
under this section must be used for construction, improvement, and maintenance of city
streets and bridges.

Subd. 2.

Larger city streets and bridges account.

A larger city streets and bridges
account is created as a special revenue account and established in the state treasury,
consisting of money allotted, appropriated, or transferred through gift or grant for the
account. Money in the account must be appropriated to the commissioner of transportation
by law and apportioned among all the cities in the state that are eligible to receive
municipal state aid. The commissioner shall apportion: (1) 50 percent of the money so
that each city receives of that amount the percentage that its population bears to the total
population of all cities that are eligible to receive municipal state aid; and (2) 50 percent of
the money so that each city receives of that amount the percentage that its money needs, as
determined by the commissioner under section 162.13, subdivision 3, bears to the total
money needs of all cities that are eligible to receive municipal state aid.

Sec. 11.

Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:


Subd. 3.

Motor vehicle lease sales tax revenue.

(a) For purposes of this subdivision,
"net revenue" means an amount equal to the revenues, including interest and penalties,
collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.

(b) On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of the net revenue revenues for the current fiscal year, including
interest and penalties collected during the fiscal year under this section
.

(c) (b) On or after July 1 of the subsequent fiscal year, the commissioner of
management and budget shall transfer the net revenue revenues as estimated in paragraph
(b) (a) from the general fund, as follows:

(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to
the county state-aid highway fund.

(c) Notwithstanding any other law to the contrary, the commissioner of transportation
shall allocate the funds transferred under this clause paragraph (b) to the counties in the
metropolitan area, as defined in section 473.121, subdivision 4, excluding the counties of
Hennepin and Ramsey,
so that each county shall receive of such amount the percentage
that its population, as defined in section 477A.011, subdivision 3, estimated or established
by July 15 of the year prior to the current calendar year, bears to the total population of the
counties receiving funds under this clause; and

(2) the remainder to the greater Minnesota transit account. For the purposes of the
calculation in this paragraph, the population of Hennepin County shall first be multiplied
by 0.25, and the population of Ramsey County shall first be multiplied by 0.5.

(d) The revenues transferred under this subdivision do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section
297A.62, subdivision 1a, which must be deposited as provided under the Minnesota
Constitution, article XI, section 15.

EFFECTIVE DATE.

Paragraphs (a) through (c) are effective January 1, 2016, and
paragraph (d) is effective the day following final enactment.

Sec. 12.

Minnesota Statutes 2014, section 297B.09, subdivision 1, is amended to read:


Subdivision 1.

Deposit of revenues.

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

(b) 60 58 percent of the money collected and received must be deposited in the
highway user tax distribution fund, 36 34 percent must be deposited in the metropolitan
area transit account under section 16A.88, and four eight percent must be deposited in the
greater Minnesota transit account under section 16A.88.

(c) It is the intent of the legislature that the allocations under paragraph (b) remain
unchanged for fiscal year 2012 and all subsequent fiscal years.

Sec. 13. GREATER MINNESOTA TRANSIT APPROPRIATION.

$...... is appropriated from the general fund to the commissioner of transportation
in each of fiscal years 2016 and 2017, for assistance to transit systems outside the
metropolitan area under Minnesota Statutes, section 174.24.

Sec. 14. REPEALER.

Minnesota Statutes 2014, section 161.081, subdivision 3, is repealed.

EFFECTIVE DATE.

This section is effective July 1, 2015.

ARTICLE 6

RAILROAD RECODIFICATION

Section 1.

Minnesota Statutes 2014, section 270.80, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

The following words and phrases when used
in sections 270.80 273.3712 to 270.87 273.3719, unless the context clearly indicates
otherwise, have the meanings ascribed to them in this section.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 2.

Minnesota Statutes 2014, section 270.80, subdivision 2, is amended to read:


Subd. 2.

Railroad company.

"Railroad company" means:

(1) any company which as a common carrier operates a railroad or a line or lines of
railway railroad situated within or partly within Minnesota; or

(2) any company owning or operating, other than as a common carrier, a railway
principally used for transportation of taconite concentrates from the plant at which the
taconite concentrates are produced in shipping form to a point of consumption or port
for shipment beyond the state; or

(3) any company that produces concentrates from taconite and transports that
taconite in the course of the concentrating process and before the concentrating process is
completed to a concentrating plant located within the state over a railroad that is not a
common carrier and shall does not use a common carrier or taconite railroad company as
defined in clause (2) for the movement of the concentrate to a point of consumption or
port for shipment beyond the state.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 3.

Minnesota Statutes 2014, section 270.80, subdivision 3, is amended to read:


Subd. 3.

Operating property.

"Operating property" means all property owned
or used by a railroad company in the performance of railroad transportation services,
including without limitation franchises, rights-of-way, bridges, trestles, shops, docks,
wharves, buildings and structures
, but not limited to, roads, locomotives, freight cars,
and improvements on leased property. Operating property is listed and assessed by the
commissioner where the property is located
.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 4.

Minnesota Statutes 2014, section 270.80, subdivision 4, is amended to read:


Subd. 4.

Nonoperating property.

"Nonoperating property" means and includes all
property other than property defined in subdivision 3. Nonoperating property shall include
includes real property which that is leased or rented or available for lease or rent to any
person which that is not a railroad company. Vacant land shall be presumed to be available
for lease or rent if it has not been used as operating property for a period of one year
immediately preceding the valuation date. Nonoperating property also includes land which
that is not necessary and integral to the performance of railroad transportation services
and which that is not used on a regular and continual basis in the performance of these
services. Nonoperating property also includes that portion of a general corporation office
building and its proportionate share of land which that is not used for railway railroad
operation or purpose. Nonoperating property is assessed by the local or county assessor.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 5.

Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:


Subd. 6.

Company.

"Company" means any corporation, limited liability company,
association, partnership, trust, estate, fiduciary, public or private organization of any kind,
or any other legal entity.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 6.

Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:


Subd. 7.

Unit value.

"Unit value" means the value of the whole integrated system
of a railroad company operating as a going concern without regard to the value of its
component parts.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 7.

Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:


Subd. 8.

Book depreciation.

"Book depreciation" means the accumulated
depreciation shown by a railroad company on its books or allowed to the company by
the Surface Transportation Board.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 8.

Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:


Subd. 9.

Equalization.

"Equalization" means the adjustment of the estimated value
of railroad operating property to the apparent sales ratio of commercial and industrial
property.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 9.

Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:


Subd. 10.

Exempt property.

"Exempt property" means property which is
nontaxable for ad valorem tax purposes under Minnesota Statutes, including personal
property exempt from taxation under chapter 272.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 10.

Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:


Subd. 11.

Original cost.

"Original cost" means the amount paid for an asset by the
current owner as recorded on the railroad's books or allowed by the Surface Transportation
Board.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 11.

Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:


Subd. 12.

System.

"System" means the total property, real and personal, of a
railroad, that is used in its railroad operations.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 12.

Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
to read:


Subd. 14.

Minnesota allocated value.

"Minnesota allocated value" means the value
of a railroad company's operating property that is assigned to Minnesota for tax purposes.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 13.

Minnesota Statutes 2014, section 270.81, subdivision 1, is amended to read:


Subdivision 1.

Valuation of operating property.

The operating property of every
railroad company doing business in Minnesota shall be valued by the commissioner in the
manner prescribed by sections 270.80 273.3712 to 270.87 273.3719.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 14.

Minnesota Statutes 2014, section 270.81, subdivision 3, is amended to read:


Subd. 3.

Determination of type of property.

(a) The commissioner shall have has
exclusive primary jurisdiction to determine what whether railroad property is operating
property and what is or nonoperating property. In making such the determination, the
commissioner shall may solicit information and opinions from outside the department
and afford all interested persons an opportunity to submit data or views on the subject
in writing or orally.

(b) Local and county assessors may submit written requests to the commissioner,
asking for a determination of the nature of specific whether property owned by a
railroad and located within their assessing jurisdiction is operating or nonoperating. Any
determination made by the commissioner may be appealed by the assessor to the Tax Court
pursuant to chapter 271.
The requests must be submitted by April 1 of the assessing year.
The commissioner must send the assessor a written determination by May 1. Assessors may
appeal determinations made by the commissioner to the Tax Court pursuant to chapter 271.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 15.

Minnesota Statutes 2014, section 270.81, is amended by adding a subdivision
to read:


Subd. 6.

Deduction for nonoperating and exempt property.

Property that was part
of the system, but is nonoperating property, or that is exempt from ad valorem taxation, is
excluded from the Minnesota allocated value under section 273.3718, subdivision 1a. Only
qualifying property located in Minnesota may be deducted from the Minnesota allocated
value. The commissioner must deduct the market value of the property to be excluded. This
must be calculated by multiplying the book value of the property by the market-to-book
ratio of the unit. The company has the burden of proof to establish that property should
be excluded from the Minnesota allocated value. The railroad company must submit
schedules of exempt or nonoperating property as the commissioner may require. The
remaining amount after this deduction is the Minnesota apportionable market value.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 16.

Minnesota Statutes 2014, section 270.82, is amended to read:


270.82 REPORTS OF RAILROAD COMPANIES.

Subdivision 1.

Annual report required.

Before March 31, every railroad company
doing business in Minnesota shall annually must file with the commissioner on or before
March 31 a
an annual report under oath setting forth the information prescribed by the
commissioner to enable the commissioner to make the valuation and equalization required
by sections 270.80 273.3712 to 270.87. 273.3719. The commissioner shall prescribe the
content, format, and manner of the report pursuant to section 270C.30. If a report is made
by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
except that a "law administered by the commissioner" includes the property tax laws.

Subd. 2.

Extension of time.

If the commissioner for good determines that there is
reasonable
cause, the commissioner may extend the time for filing the report required by
subdivision 1
for up to 15 days the time for filing the report required by subdivision 1.

Subd. 3.

Amended reports.

A railroad company may file an amended report to
correct or add information to the original report. Amended reports must be filed with
the commissioner by April 30.

Subd. 4.

Failure to file reports.

(a) The commissioner may make the valuation
provided for by sections 273.3712 to 237.3719, according to the commissioner's best
judgment based on available information, if any railroad company does not:

(1) make the report required by this section;

(2) permit an inspection and examination of its property, records, books, accounts,
or other papers when requested by the commissioner; or

(3) appear before the commissioner or a person appointed under section 273.3715,
when required to do so.

(b) If the commissioner makes the valuation pursuant to paragraph (a), the
commissioner's valuation is final. Notwithstanding any other law to the contrary,
the commissioner's valuation made pursuant to this subdivision is not appealable
administratively.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 17.

Minnesota Statutes 2014, section 270.83, subdivision 1, is amended to read:


Subdivision 1.

Powers of commissioner.

The commissioner shall have has the
power to examine or cause to be examined any books, papers, records, or memoranda
relevant to the determination of the valuation of operating property as herein provided.
The commissioner shall have the further power to may require the attendance of any
person having knowledge or information in the premises concerning the valuation of the
operating property
, to compel the production of books, papers, records, or memoranda by
persons so required to attend, to take testimony on matters material to such determination
determine the valuation of operating property and administer oaths or affirmations.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 18.

Minnesota Statutes 2014, section 270.83, subdivision 2, is amended to read:


Subd. 2.

Appointment of persons; subpoenas.

For the purpose of making such
examinations,
The commissioner may appoint such persons as the commissioner may
deem
deems necessary to make the examinations described in subdivision 1. Such
persons shall have the rights and powers of the examining of
Persons appointed may
examine
books, papers, records or memoranda, and of subpoenaing subpoena witnesses,
administering administer oaths and affirmations, and taking of take testimony, which are
conferred upon the commissioner hereby
. The court administrator of any court of record,
upon demand of any such person appointed, shall issue a subpoena for the attendance of
any witness or the production of any books, papers, records, or memoranda before such
person. The commissioner may also issue subpoenas for the appearance of witnesses
before the commissioner or before such persons. Disobedience of subpoenas so issued
shall be punished by the district court of the district in which the subpoena is issued for a
contempt of the district court
. Failure to comply with a subpoena shall be punished in the
same manner as contempt of the district court.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 19.

Minnesota Statutes 2014, section 270.84, is amended to read:


270.84 ANNUAL VALUATION OF OPERATING PROPERTY.

Subdivision 1.

Annual valuation; rules.

(a) Before July 1, the commissioner
shall annually between March 31 and May 31 make a determination of must determine
the fair market value of the operating property of every railroad company doing business
in this state as of January 2 of the year in which the valuation is made. In making
this determination,
The commissioner shall must employ generally accepted appraisal
principles and practices which may include the unit method of determining value., and
approaches approved by the Western States Association of Tax Administrators, National
Conference of Unit Valuation States, and the International Association of Assessing
Officers.

(b) The unit value of railroad property is the reconciled value considering the cost,
income, and market approaches under subdivisions 1a, 1b, and 1c. Each approach must
be weighted in accordance with the reliability of the information and the commissioner's
judgment.

Subd. 1a.

Cost approach.

(a) The commissioner may use the cost approach,
including but not limited to original cost less book depreciation and replacement cost
less depreciation.

(b) Book depreciation is allowed as a deduction from an original cost model. Book
depreciation is assumed to include all forms of appraisal depreciation.

(c) Explicitly calculated appraisal depreciation, including physical, functional, and
external obsolescence, is allowed as a deduction from the replacement cost model.

Subd. 1b.

Income approach.

(a) The commissioner may use the income approach,
including but not limited to direct capitalization models and yield capitalization models.

(b) The yield rate is calculated using market data on selected comparable companies
in the band of investment method.

(1) Discounted cash flows is a yield capitalization model that calculates the present
value of explicit cash flow forecasts capitalized using the yield rate, plus revision to stable
growth yield capitalization after the period of explicit forecasts.

(2) Stable growth yield capitalization is a yield capitalization model that calculates
the present value of anticipated future cash flows, capitalized using the yield rate and
considering growth.

(c) Direct capitalization is the expected net operating income for the following year,
divided by the direct capitalization rate. The direct capitalization rate is calculated by
using direct market observations from comparable sales or using market earning-to-price
information in the band of investment method.

Subd. 1c.

Market approach.

The commissioner may use the market approach,
including but not limited to a sales comparison model, a stock and debt model, or other
market models that are available and reliable.

Subd. 2.

Notice.

The commissioner, after determining the fair market value of the
operating property of each railroad company, shall give notice to must notify the railroad
company of the valuation by first class mail, overnight delivery, or messenger service.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 20.

Minnesota Statutes 2014, section 270.86, is amended to read:


270.86 APPORTIONMENT AND EQUALIZATION OF VALUATION.

Subdivision 1.

Apportionment of value.

Upon determining After allocating to
Minnesota
the fair market value of the operating property of each railroad company, the
commissioner shall must apportion such the value to the respective counties and to the
taxing districts therein in conformity with fair and reasonable rules and standards to be
established by the commissioner pursuant to notice and hearing, except as provided in
section 270.81. In establishing such rules and standards the commissioner may consider
(a) the physical situs of all station houses, depots, docks, wharves, and other buildings and
structures with an original cost in excess of $10,000; (b) the proportion that the length and
type of all the tracks used by the railroad in such county and taxing district bears to the
length and type of all the track used in the state; and (c) other facts as will result in a fair
and equitable apportionment of value
the operating parcels in Minnesota.

The apportioned market value of each company's operating parcel in Minnesota is
the current original cost of each parcel as of the last assessment date plus original cost
of new construction minus the original cost of property retired since the last assessment
date. The total Minnesota apportionable market value of the railroad is divided by the
total current original cost of the railroad in Minnesota to determine a percentage. The
resulting percentage is multiplied by the current original cost of each parcel to determine
the apportioned market value of each parcel.

Subd. 1a.

Allocation of value.

(a) After the market value of operating property has
been estimated, the portion of value that is attributable to Minnesota must be determined
by calculating an allocation percentage using factors relevant to the industry segment of
the railroad company. The allocation percentage must be multiplied by the value of the
operating property to determine the Minnesota allocated value.

(b) The Minnesota allocated value is determined by averaging the following factors:

(1) miles of railroad track operated in Minnesota divided by miles of railroad track
operated in all states;

(2) ton miles of revenue freight transported in Minnesota divided by ton miles of
revenue freight transported in all states;

(3) gross revenues from transportation operations within Minnesota divided by gross
revenues from transportation operations in all states; and

(4) cost of railroad property in Minnesota divided by cost of railroad property in
all states.

(c) Each of the available factors must be weighted equally.

Subd. 2.

Equalized valuation.

After making the apportionment provided in
subdivision 1, the commissioner shall must determine the equalized valuation of the
operating property in each county by applying to the apportioned value an estimated
current year median sales ratio for all commercial and industrial property in that county.
If the commissioner decides determines that there are insufficient sales to determine a
median commercial-industrial sales ratio, an estimated current year countywide median
sales ratio for all property shall must be applied to the apportioned value. No equalization
shall
Equalization must not be made to the market value of the operating property if the
median sales ratio determined pursuant to this subdivision is within five at least 90 but less
than 105
percent of the assessment ratio of the railroad operating property.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 21.

Minnesota Statutes 2014, section 270.87, is amended to read:


270.87 CERTIFICATION TO COUNTY ASSESSORS.

After making an annual determination of the equalized fair market value of the
operating property of each company in each of the respective counties, and in the taxing
districts therein,
The commissioner shall must certify the equalized fair market value of
the operating property
to the county assessor on or before June 30 August 1. The equalized
fair market value of the operating property of the railroad company in the county and the
taxing districts therein is the value on which taxes must be levied and collected in the
same manner as on the commercial and industrial property of such county and the taxing
districts therein
in the counties and taxing districts. If the commissioner determines that
the equalized fair market value certified on or before June 30 August 1 is in error, the
commissioner may issue a corrected certification on or before August 31 October 1. The
commissioner may correct errors that are merely clerical in nature until December 31.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 22.

Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:


Subd. 9.

Personal property; exceptions.

Except for the taxable personal property
enumerated below, all personal property and the property described in section 272.03,
subdivision 1
, paragraphs (c) and (d), shall be exempt.

The following personal property shall be taxable:

(a) personal property which is part of an electric generating, transmission, or
distribution system or a pipeline system transporting or distributing water, gas, crude
oil, or petroleum products or mains and pipes used in the distribution of steam or hot or
chilled water for heating or cooling buildings and structures;

(b) railroad docks and wharves which are part of the personal property that is part of
the
operating property of a railroad company as defined in section 270.80 273.3712;

(c) personal property defined in section 272.03, subdivision 2, clause (3);

(d) leasehold or other personal property interests which are taxed pursuant to section
272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
providing the property is taxable as if the lessee or user were the fee owner;

(e) manufactured homes and sectional structures, including storage sheds, decks,
and similar removable improvements constructed on the site of a manufactured home,
sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision
8
, paragraph (f); and

(f) flight property as defined in section 270.071.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 23.

Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:


Subdivision 1.

Levy amount.

The state general levy is levied against
commercial-industrial property and seasonal residential recreational property, as defined in
this section. The state general levy base amount is $592,000,000 $889,600,000 for taxes
payable in 2002 2016. For taxes payable in subsequent years, the levy base amount is
increased each year by multiplying the levy base amount for the prior year by the sum
of one plus the rate of increase, if any, in the implicit price deflator for government
consumption expenditures and gross investment for state and local governments prepared
by the Bureau of Economic Analysts of the United States Department of Commerce for
the 12-month period ending March 31 of the year prior to the year the taxes are payable.
The tax under this section is not treated as a local tax rate under section 469.177 and is not
the levy of a governmental unit under chapters 276A and 473F.

The commissioner shall increase or decrease the preliminary or final rate for a year
as necessary to account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years. Adjustments are allowed to the extent that the
necessary information is available to the commissioner at the time the rates for a year must
be certified, and for the following reasons:

(1) an erroneous report of taxable value by a local official;

(2) an erroneous calculation by the commissioner; and

(3) an increase or decrease in taxable value for commercial-industrial or seasonal
residential recreational property reported on the abstracts of tax lists submitted under
section 275.29 that was not reported on the abstracts of assessment submitted under
section 270C.89 for the same year.

The commissioner may, but need not, make adjustments if the total difference in the tax
levied for the year would be less than $100,000.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 24.

Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:


Subd. 4.

Apportionment and levy of state general tax.

Ninety-five 95.1 percent of
the state general tax must be levied by applying a uniform rate to all commercial-industrial
tax capacity and five 4.9 percent of the state general tax must be levied by applying a
uniform rate to all seasonal residential recreational tax capacity. On or before October 1
each year, the commissioner of revenue shall certify the preliminary state general levy
rates to each county auditor that must be used to prepare the notices of proposed property
taxes for taxes payable in the following year. By January 1 of each year, the commissioner
shall certify the final state general levy rate to each county auditor that shall be used
in spreading taxes.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 25. APPROPRIATIONS.

The following sums are appropriated from the general fund to the agency to
implement the provisions of this article as follows: $266,000 in fiscal year 2016, $14,000
in fiscal year 2017, $13,000 in fiscal year 2018, and $11,000 in fiscal year 2019. The sums
indicated in this section for fiscal years 2016, 2017, and 2018 are onetime appropriations
and are not added to the agency's permanent base. The sum indicated in this section for
fiscal year 2019 shall become part of the agency's base.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 26. REVISOR'S INSTRUCTION.

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 and Minnesota Rules consistent with
renumbering.

Column A
Column B
270.80
273.3712
270.81
273.3713
270.82
273.3714
270.83
273.3715
270.84
273.3716
270.85
273.3717
270.86
273.3718
270.87
273.3719

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

Sec. 27. REPEALER.

Minnesota Statutes 2014, sections 270.81, subdivision 4; and 270.83, subdivision 3,
and

Minnesota Rules, parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17,
17a, 18, 19, 20, and 21; 8106.0300, subparts 1 and 3; 8106.0400; 8106.0500; 8106.0600;
8106.0700; 8106.0800; and 8106.9900,
are repealed.

EFFECTIVE DATE.

This section is effective for assessment year 2016 and
thereafter.

ARTICLE 7

EFFICIENCY MEASURES

Section 1.

Minnesota Statutes 2014, section 16E.15, subdivision 2, is amended to read:


Subd. 2.

Software sale fund.

(a) Except as provided in paragraph paragraphs (b)
and (c), proceeds of from the sale or licensing of software products or services by the chief
information officer must be credited to the MN.IT services revolving fund. If a state
agency other than the Office of MN.IT Services has contributed to the development of
software sold or licensed under this section, the chief information officer may reimburse
the agency by discounting computer services provided to that agency.

(b) Proceeds of from the sale or licensing of software products or services developed
by the Pollution Control Agency, or custom developed by a vendor for the agency, must be
credited to the environmental fund.

(c) Proceeds from the sale or licensing of software products or services developed
by the Department of Transportation, or custom developed by a vendor for the agency,
using trunk highway funds, must be credited to the trunk highway fund.

Sec. 2.

Minnesota Statutes 2014, section 161.20, is amended by adding a subdivision
to read:


Subd. 3a.

Transfer of appropriations.

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

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

[161.225] LOANS FOR LAND ACQUISITION FOR HIGHWAY
PROJECTS.

Subdivision 1.

Account established.

The state right-of-way acquisition loan
account is created in the trunk highway fund for the purposes specified in this section.
Money in the account is annually appropriated to the commissioner and does not lapse.
Interest from the investment of money in this account must be deposited in the state
right-of-way acquisition loan account.

Subd. 2.

Loans.

(a) The commissioner may make loans to counties, towns, and
statutory and home rule charter cities to purchase property within the right-of-way of
a state trunk highway shown on an official map adopted pursuant to section 394.361
or 462.359, or to purchase property within the proposed right-of-way of a principal or
intermediate arterial highway. The loans shall be made from the fund established under this
subdivision for purchases approved by the commissioner. The loans shall bear no interest.

(b) The commissioner shall make loans only to:

(1) accelerate the acquisition of primarily undeveloped property when there
is a reasonable probability that the property will increase in value before highway
construction, and to update an expired environmental impact statement on a project for
which the right-of-way is being purchased;

(2) avert the imminent conversion or the granting of approvals which would allow
the conversion of property to uses which would jeopardize its availability for highway
construction;

(3) advance planning and environmental activities on highest priority major
metropolitan river crossing projects under the transportation development guide chapter
policy plan; or

(4) take advantage of open market opportunities when developed properties become
available for sale, provided all parties involved are agreeable to the sale and funds are
available.

(c) The commissioner shall not make loans to purchase property at a price which
exceeds the fair market value of the property or which includes the costs of relocating or
moving persons or property. The eminent domain process may be used to settle differences
of opinion as to fair market value, provided all parties agree to the process.

(d) A private property owner may elect to receive the purchase price either
in a lump sum or in not more than four annual installments without interest on the
deferred installments. If the purchase agreement provides for installment payments,
the commissioner shall make the loan in installments corresponding to those in the
purchase agreement. The recipient of an acquisition loan shall convey the property for the
construction of the highway at the same price which the recipient paid for the property. The
price may include the costs of preparing environmental documents that were required for
the acquisition and that were paid for with money that the recipient received from the loan
fund. Upon notification by the commissioner that the plan to construct the highway has been
abandoned or the anticipated location of the highway has changed, the recipient shall sell
the property at market value in accordance with the procedures required for the disposition
of the property. All rents and other money received because of the recipient's ownership
of the property and all proceeds from the conveyance or sale of the property shall be paid
to the commissioner. If a recipient is not permitted to include in the conveyance price the
cost of preparing environmental documents that were required for the acquisition, then the
recipient is not required to repay the commissioner an amount equal to 40 percent of the
money received from the loan fund and spent in preparing the environmental documents.

(e) For administration of the loan program, the commissioner may expend from the
fund each year an amount no greater than three percent of the amount of the proceeds for
that year.

Subd. 3.

Loans for acquisition and relocation.

(a) The commissioner may
make loans to acquiring authorities within the metropolitan area to purchase homestead
property located in a proposed state trunk highway right-of-way or project, and to provide
relocation assistance. Acquiring authorities are authorized to accept the loans and to
acquire the property. Except as provided in this subdivision, the loans shall be made as
provided in subdivision 2. Loans shall be in the amount of the fair market value of the
homestead property plus relocation costs and less salvage value. Before construction of
the highway begins, the acquiring authority shall convey the property to the commissioner
at the same price it paid, plus relocation costs and less its salvage value. Acquisition and
assistance under this subdivision must conform to sections 117.50 to 117.56.

(b) The commissioner may make loans only when:

(1) the owner of affected homestead property requests acquisition and relocation
assistance from an acquiring authority;

(2) federal or state financial participation is not available;

(3) the owner is unable to sell the homestead property at its appraised market value
because the property is located in a proposed state trunk highway right-of-way or project as
indicated on an official map or plat adopted under section 160.085, 394.361, or 462.359; and

(4) the commissioner agrees to and approves the fair market value of the homestead
property, which approval shall not be unreasonably withheld.

(c) For purposes of this subdivision, the following terms have the meanings given
them:

(1) "acquiring authority" means counties, towns, and statutory and home rule
charter cities;

(2) "homestead property" means: (i) a single-family dwelling occupied by the
owner, and the surrounding land, not exceeding a total of ten acres; or (ii) a manufactured
home, as defined in section 327B.01, subdivision 13; and

(3) "salvage value" means the probable sale price of the dwelling and other property
that is severable from the land if offered for sale on the condition that it be removed from
the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge
of the possible uses of the property, including separate use of serviceable components and
scrap when there is no other reasonable prospect of sale.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 4.

Minnesota Statutes 2014, section 161.231, is amended to read:


161.231 APPROPRIATION; PROCEEDS FROM LEASED STATE
PROPERTY.

There is appropriated annually from the fund or account in the state treasury to which
the rental money from the sale, lease, conveyance, or disposal of state leased property
is credited a sufficient amount of money to carry out the state's obligations under the
provisions of sections 15.16, 117.135, 117.226, 161.16, 161.202, 161.23, subdivision 3,
161.24, 161.241, 161.43, 161.433, 161.44, 161.442, and 272.68, subdivision 3, including
the inventorying, marketing, and property management activities required to sell, lease,
rent, permit, convey, or otherwise dispose of the land or the interest in the land. At the
discretion of the commissioner of transportation, money in the account at the end of each
biennium may cancel to the trunk highway fund
.

Sec. 5.

Minnesota Statutes 2014, section 161.46, subdivision 2, is amended to read:


Subd. 2.

Relocation of facilities; reimbursement.

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

(b) Notwithstanding paragraph (a), any utility facility installed after August 1, 2015,
is not eligible for relocation reimbursement.

Sec. 6.

Minnesota Statutes 2014, section 168.013, subdivision 8, is amended to read:


Subd. 8.

Tax proceeds to highway user fund; fee proceeds to vehicle services
account.

(a) Unless otherwise specified in this chapter, the net proceeds of the registration
tax imposed under this chapter, including the penalty surcharge for late payment, imposed
in section 168.31, subdivision 1a,
must be collected by the commissioner, paid into the
state treasury, and credited to the highway user tax distribution fund.

(b) All fees collected under this chapter, unless otherwise specified, must be
deposited in the vehicle services operating account in the special revenue fund under
section 299A.705.

EFFECTIVE DATE.

This section is effective July 1, 2015, and applies to vehicle
registration taxes due and unpaid on and after that date.

Sec. 7.

Minnesota Statutes 2014, section 168.31, is amended by adding a subdivision
to read:


Subd. 1a.

Penalty surcharge for late payment.

Except as otherwise provided in
subdivisions 4 and 4a, a vehicle owner who has failed to pay the tax required under this
chapter on or before the due date shall pay in full the tax due on the vehicle, together with
a penalty surcharge of $25 for each month or portion of a month following the expiration
of the registration period, except that the amount of the late fee may not exceed $100.

EFFECTIVE DATE.

This section is effective July 1, 2015, and applies to vehicle
registration taxes due and unpaid on and after that date.

Sec. 8.

[174.53] FEDERAL FUND FLEXIBILITY PROGRAM.

The commissioner shall establish a program to allow greater flexibility and
efficiency in the allocation of federal funds for state-aid transportation projects. The
commissioner shall:

(1) establish and administer selection criteria and a process under which a local unit
of government that would otherwise receive federal funds for a local transportation project
would be able to finance the project with state funds instead of federal funds;

(2) redirect the unused federal funds to transportation projects for which federal
funds could be utilized by the state more efficiently and productively;

(3) achieve a reasonable degree of equity among the department districts in
distributing funds under the program; and

(4) ensure that the state's receipt of federal funds for transportation projects is not
jeopardized by the program.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 9.

Minnesota Statutes 2014, section 299D.09, is amended to read:


299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.

(a) 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.

(b) The fee charged for services provided by the State Patrol with a vehicle is $79.28
an hour. The fee charged for services provided without a vehicle is $59.28 an hour
shall be set to recover actual costs as determined by the commissioner of public safety
by July 1 each year
.

(c) 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 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 thereafter.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 10.

Minnesota Statutes 2014, section 360.024, is amended to read:


360.024 AIR TRANSPORTATION SERVICE CHARGE.

The commissioner shall charge users of air transportation services provided by the
commissioner for direct operating costs, excluding pilot salary and aircraft acquisition
costs. All receipts for these services shall be deposited in the air transportation services
account in the state airports fund and are appropriated to the commissioner to pay these
direct air service operating costs.

Sec. 11.

Minnesota Statutes 2014, section 473.167, is amended to read:


473.167 HIGHWAY AND TRANSIT PROJECTS.

Subd. 2.

Loans for acquisition.

(a) The council may make loans to counties, towns,
and statutory and home rule charter cities within the metropolitan area for the purchase of
property within the right-of-way of a state trunk highway shown on an official map adopted
pursuant to section 394.361 or 462.359 or, for the purchase of property within the proposed
right-of-way of a principal or intermediate arterial highway designated by the council as a
part of the metropolitan highway system plan and approved by the council pursuant to
section 473.166, or for the purchase of property needed for proposed transit-related capital
improvements, including transitways designated in the council's most recent transportation
policy plan
. The loans shall be made by the council, from the fund established pursuant to
this subdivision, for purchases approved by the council. The loans shall bear no interest.

(b) The council shall make loans only:

(1) to accelerate the acquisition of primarily undeveloped property when there
is a reasonable probability that the property will increase in value before highway or
transit-related
construction, and to update an expired environmental impact statement on
a project for which the right-of-way is being purchased;

(2) to avert the imminent conversion or the granting of approvals which would allow
the conversion of property to uses which would jeopardize its availability for highway or
transit-related
construction;

(3) to advance planning and environmental activities on highest priority major
metropolitan river crossing projects, under the transportation development guide
chapter/policy plan; or

(4) to take advantage of open market opportunities when developed properties
become available for sale, provided all parties involved are agreeable to the sale and
funds are available.

(c) The council shall not make loans for the purchase of property at a price which
exceeds the fair market value of the property or which includes the costs of relocating or
moving persons or property. The eminent domain process may be used to settle differences
of opinion as to fair market value, provided all parties agree to the process.

(d) A private property owner may elect to receive the purchase price either in a
lump sum or in not more than four annual installments without interest on the deferred
installments. If the purchase agreement provides for installment payments, the council
shall make the loan in installments corresponding to those in the purchase agreement. The
recipient of an acquisition loan shall convey the property for the construction of the highway
at the same price which the recipient paid for the property. The price may include the costs
of preparing environmental documents that were required for the acquisition and that were
paid for with money that the recipient received from the loan fund. Upon notification by
the council that the plan to construct the highway or transit project has been abandoned or
the anticipated location of the highway or transit project changed, the recipient shall sell
the property at market value in accordance with the procedures required for the disposition
of the property. All rents and other money received because of the recipient's ownership
of the property and all proceeds from the conveyance or sale of the property shall be paid
to the council. If a recipient is not permitted to include in the conveyance price the cost
of preparing environmental documents that were required for the acquisition, then the
recipient is not required to repay the council an amount equal to 40 percent of the money
received from the loan fund and spent in preparing the environmental documents.

(e) The proceeds of the tax authorized by subdivision 3, all money paid to the
council by recipients of loans, and all interest on the proceeds and payments shall be
maintained as a separate fund. For administration of the loan program, the council may
expend from the fund each year an amount no greater than three percent of the amount of
the proceeds for that year.

Subd. 2a.

Loans for acquisition and relocation.

(a) The council may make loans
to acquiring authorities within the metropolitan area to purchase homestead property
located in a proposed state trunk highway right-of-way or project or transit-related project,
and to provide relocation assistance. Acquiring authorities are authorized to accept the
loans and to acquire the property. Except as provided in this subdivision, the loans shall
be made as provided in subdivision 2. Loans shall be in the amount of the fair market
value of the homestead property plus relocation costs and less salvage value. Before
construction of the highway or transit-related project begins, the acquiring authority shall
convey the property to the commissioner of transportation or council at the same price it
paid, plus relocation costs and less its salvage value. Acquisition and assistance under this
subdivision must conform to sections 117.50 to 117.56.

(b) The council may make loans only when:

(1) the owner of affected homestead property requests acquisition and relocation
assistance from an acquiring authority;

(2) federal or state financial participation is not available;

(3) the owner is unable to sell the homestead property at its appraised market
value because the property is located in a proposed state trunk highway right-of-way or
project as indicated on an official map or plat adopted under section 160.085, 394.361,
or 462.359, or transit-related project; and

(4) the council agrees to and approves the fair market value of the homestead
property, which approval shall not be unreasonably withheld.

(c) For purposes of this subdivision, the following terms have the meanings given
them.

(1) "Acquiring authority" means counties, towns, and statutory and home rule
charter cities in the metropolitan area.

(2) "Homestead property" means: (i) a single-family dwelling occupied by the
owner, and the surrounding land, not exceeding a total of ten acres; or (ii) a manufactured
home, as defined in section 327B.01, subdivision 13.

(3) "Salvage value" means the probable sale price of the dwelling and other property
that is severable from the land if offered for sale on the condition that it be removed from
the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge
of the possible uses of the property, including separate use of serviceable components and
scrap when there is no other reasonable prospect of sale.

Subd. 3.

Tax.

The council may levy a tax on all taxable property in the metropolitan
area, as defined in section 473.121, to provide funds for loans made pursuant to
subdivisions 2 and 2a. This tax for the right-of-way acquisition loan fund shall be certified
by the council, levied, and collected in the manner provided by section 473.13. The tax
shall be in addition to that authorized by section 473.249 and any other law and shall not
affect the amount or rate of taxes which may be levied by the council or any metropolitan
agency or local governmental unit. The amount of the levy shall be as determined and
certified by the council, provided that the tax levied by the Metropolitan Council for the
right-of-way acquisition loan fund shall not exceed $2,828,379 for taxes payable in 2004
and $2,828,379 for taxes payable in 2005. The amount of the levy for taxes payable in
2006 and subsequent years shall not exceed
the product of (1) the Metropolitan Council's
property tax levy limitation under this subdivision for the previous year, multiplied by
(2) one plus a percentage equal to the growth in the implicit price deflator as defined
in section 275.70, subdivision 2.

Subd. 4.

State review.

The commissioner of revenue shall certify the council's levy
limitation under this section to the council by August 1 of the levy year. The council must
certify its proposed property tax levy to the commissioner of revenue by September 1 of
the levy year. The commissioner of revenue shall annually determine whether the property
tax for the right-of-way acquisition loan fund certified by the Metropolitan Council for
levy following the adoption of its proposed budget is within the levy limitation imposed
by this section. The determination must be completed prior to September 10 of each year.
If current information regarding market valuation in any county is not transmitted to the
commissioner in a timely manner, the commissioner may estimate the current market
valuation within that county for purposes of making the calculation.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 12.

Laws 2014, chapter 312, article 11, section 33, is amended to read:


Sec. 33. TRANSPORTATION EFFICIENCIES.

(a) The commissioner of transportation shall include in the report under Minnesota
Statutes, section 174.56, due by December 15, 2015, information on efficiencies
implemented in fiscal year 2015 in planning and project management and delivery,
along with an explanation of the efficiencies employed to achieve the savings and the
methodology used in the calculations. The level of savings achieved must equal, in
comparison with the total state road construction budget for that year, a minimum of five
percent in fiscal year 2015. The report must identify the projects that have been advanced
or completed due to the implementation of efficiency measures.

(b) The commissioner shall identify in the report those recommendations from the
Transportation Strategic Management and Operations Advisory Task Force Report dated
January 23, 2009, submitted to the legislature by the Departments of Administration
and Transportation, as required by Laws 2008, chapter 152, article 6, section 9,
that the commissioner has implemented, with a description of current status of the
recommendation and results of implementation.

(c) The commissioner shall present in the report plans to incorporate greater
efficiencies in department operation and decision-making, including, but not limited to,
the following: financing innovations, mode choice in project selection and design, land
use planning, return on investment calculation, project delivery, including selection of
materials and decreasing project delivery time, and efficiencies in multiagency permitting.

Sec. 13. APPROPRIATION.

$....... is appropriated from the trunk highway fund to the commissioner of
transportation for deposit in the state right-of-way acquisition loan account under
Minnesota Statutes, section 161.225.

EFFECTIVE DATE.

This section is effective January 1, 2016.

ARTICLE 8

TRANSPORTATION POLICY

Section 1.

Minnesota Statutes 2014, section 161.088, subdivision 3, is amended to read:


Subd. 3.

Project classification.

The commissioner shall determine whether each
candidate project can be classified into at least one of the following classifications:

(1) capacity development, for a project on a segment of a trunk highway where the
segment:

(i) is not a divided highway, and that highway is an expressway or freeway beyond
the project limits;

(ii) contains a highway terminus that lacks an intersection or interchange with
another trunk highway;

(iii) contains fewer lanes of travel compared to that highway beyond the project
limits; or

(iv) contains a location that is proposed as a new interchange or to be reconstructed
from an intersection to an interchange; or

(2) freight improvement, for an asset preservation or replacement project that can
result in:

(i) removing or reducing barriers to commerce;

(ii) easing or preserving freight movement;

(iii) supporting emerging industries; or

(iv) providing connections between the trunk highway system and other
transportation modes for the movement of freight; or

(3) main street improvement, for a project on a segment of trunk highway passing
through a city center, in order to:

(i) restore or improve economic vitality; and

(ii) improve safety for all road users.

Sec. 2.

Minnesota Statutes 2014, section 161.088, subdivision 4, is amended to read:


Subd. 4.

Project eligibility.

(a) The commissioner shall establish eligibility
requirements for projects that can be funded under the program. Eligibility must include:

(1) consistency with the statewide multimodal transportation plan under section
174.03;

(2) location of the project on an interregional corridor, for a project located outside
of the Department of Transportation metropolitan district, or within a city;

(3) placement into at least one project classification under subdivision 3;

(4) a maximum length of time, as determined by the commissioner, until
commencement of construction work on the project; and

(5) for each type of project classification under subdivision 3, a maximum allowable
amount for the total project cost estimate, as determined by the commissioner with
available data.

(b) A project whose construction is programmed in the state transportation
improvement program is not eligible for funding under the program. This paragraph does
not apply to a project that is programmed as result of selection under this section.

(c) A project may be, but is not required to be, identified in the 20-year state highway
capital investment plan under section 174.03.

Sec. 3.

Minnesota Statutes 2014, section 161.088, subdivision 5, is amended to read:


Subd. 5.

Project selection process; criteria.

(a) The commissioner shall establish a
process for identification, evaluation, and selection of projects under the program.

(b) As part of the project selection process, the commissioner shall annually accept
recommendations on candidate projects from area transportation partnerships and other
interested stakeholders in each Department of Transportation district. For each candidate
project identified under this paragraph, the commissioner shall determine eligibility,
classify, and if appropriate, evaluate the project for the program.

(c) Project evaluation and prioritization must be performed on the basis of objective
criteria, which must include:

(1) a return on investment measure that provides for comparison across eligible
projects;

(2) measurable impacts on commerce and economic competitiveness;

(3) efficiency in the movement of freight, including but not limited to:

(i) measures of annual average daily traffic and commercial vehicle miles traveled,
which may include data near the project location on that trunk highway or on connecting
trunk and local highways; and

(ii) measures of congestion or travel time reliability, which may be within or near
the project limits, or both;

(4) improvements to traffic safety for all road users;

(5) connections to between and within regional trade centers, and connections with
local highway systems, and other transportation modes;

(6) the extent to which the project addresses multiple transportation system policy
objectives and principles; and

(7) support and consensus for the project among members of the surrounding
community.

(d) As part of the project selection process, the commissioner may divide funding
to be separately available among projects within each classification under subdivision 3,
and may apply separate or modified criteria among those projects falling within each
classification.

Sec. 4.

[161.317] MADE IN AMERICA.

In all highway construction and maintenance projects, the commissioner shall, to
the greatest extent feasible, utilize products, materials, and equipment that are made in
America and shall include this requirement in the department's contract specifications.

Sec. 5.

Minnesota Statutes 2014, section 168.053, subdivision 1, is amended to read:


Subdivision 1.

Application; fee; penalty.

Any person, firm, or corporation with
a business located in Minnesota
engaged in the business of transporting motor vehicles
owned by another, by delivering, by drive-away or towing methods, either singly or by
means of the full mount method, the saddle mount method, the tow bar method, or any other
combination thereof, and under their own power, vehicles over the highways of the state
from the manufacturer or any other point of origin, to any point of destination, within or
without the state, shall make application to the registrar for a drive-away in-transit license.
This application for annual license shall be accompanied by a registration fee of $250 and
contain information the registrar may require. Upon the filing of the application and the
payment of the fee, the registrar shall issue to each drive-away operator a drive-away
in-transit license plate, which must be carried and displayed on the power unit consistent
with section 169.79 and the plate shall remain on the vehicle while being operated within
Minnesota
transported. The license plate issued under this subdivision is not valid for the
purpose of permanent vehicle registration and is not valid outside Minnesota. Additional
drive-away in-transit license plates desired by any drive-away operator may be secured
from the registrar of motor vehicles upon the payment of a fee of $5 for each set of
additional license plates. Any person, firm, or corporation engaging in the business as a
drive-away operator, of transporting and delivering by means of full mount method, the
saddle mount method, the tow bar method, or any combination thereof, and under their
own power, motor vehicles, who fails or refuses to file or cause to be filed an application,
as is required by law, and to pay the fees therefor as the law requires, shall be found guilty
of violating the provisions of sections 168.053 to 168.057; and, upon conviction, fined
not less than $50, and not more than $100, and all costs of court. Each day so operating
without securing the license and plates as required shall constitute a separate offense.

Sec. 6.

Minnesota Statutes 2014, section 168D.06, is amended to read:


168D.06 FUEL LICENSE FEES.

License fees paid to the commissioner under the International Fuel Tax Agreement
must be deposited in the vehicle services operating account in the special revenue fund
under section 299A.705. The commissioner shall charge an annual fuel license fee of
$15, and an annual application filing fee of $13 for quarterly reporting of fuel tax, and a
reinstatement fee of $100 to reinstate a revoked International Fuel Tax Agreement license
.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 7.

Minnesota Statutes 2014, section 174.03, subdivision 10, is amended to read:


Subd. 10.

Highway construction training; report.

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

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

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

(2) analyze the results of the commissioner's training programs;

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

(4) identify the amount spent by the commissioner in conducting and administering
the programs.

Sec. 8.

Minnesota Statutes 2014, section 174.03, subdivision 11, is amended to read:


Subd. 11.

Disadvantaged business enterprise program; report.

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

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

(1) state the department's annual overall goal, compared with the percentage attained;

(2) explain the methodology, applicable facts, and public participation used to
establish the overall goal;

(3) describe good-faith efforts to meet the goal, if the goal was not attained;

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

(5) state the number of contracts that included disadvantaged business enterprise
goals, the number of contractors that met established disadvantaged business enterprise
goals, and sanctions imposed for lack of good-faith effort; and

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

Sec. 9.

Minnesota Statutes 2014, section 174.12, subdivision 5, is amended to read:


Subd. 5.

Financial assistance; criteria.

The commissioners of transportation and
employment and economic development shall establish criteria for evaluating projects
for financial assistance under this section. At a minimum, the criteria must provide an
objective method to prioritize and select projects on the basis of:

(1) the extent to which the project provides measurable economic benefit
in accordance with the performance measures developed by the commissioner of
employment and economic development under subdivision 4
;

(2) consistency with relevant state and local transportation plans;

(3) the availability and commitment of funding or in-kind assistance for the project
from nonpublic or nonstate sources;

(4) the need for the project as part of the overall transportation system;

(5) the extent to which completion of the project will improve the movement of
people and freight; and

(6) the extent to which the project promotes access to jobs and employment centers
and connections between modes of transportation; and

(6) (7) geographic balance as required under subdivision 7, paragraph (b).

Sec. 10.

[174.38] ACTIVE TRANSPORTATION PROGRAMS.

Subdivision 1.

Definitions.

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

(b) "Administering authority" or "authority" means the commissioner of
transportation, the joint powers board under section 297A.992, or the council, as
appropriate.

(c) "Bond-eligible cost" means:

(1) 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;

(2) preparation of land for which a nonmotorized transportation route is established,
including demolition of structures and remediation of any hazardous conditions on the
land; and

(3) the unpaid principal on debt issued by a political subdivision for a nonmotorized
transportation project.

(d) "Council" means the Metropolitan Council, as defined under section 473.121,
subdivision 3.

Subd. 2.

Programs established.

(a) Upon availability of funds specifically provided
to an administering authority for purposes of this section, the authority shall establish a
program to support bicycling, pedestrian activities, and other forms of nonmotorized
transportation as provided in this section.

(b) Subject to the requirements of this section, the authority may provide grants
or other financial assistance for a project.

Subd. 3.

Active transportation accounts.

(a) An active transportation account
is established in the bond proceeds fund. The account consists of state bond proceeds
appropriated to the commissioner or the council. Money in the account may only be
expended on bond-eligible costs of a project receiving financial assistance under this
section. All uses of funds from the account must be for publicly owned property.

(b) A greater Minnesota active transportation account is established in the special
revenue fund. The account consists of funds as provided by law, and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in the account
may only be expended on a project that is primarily located outside of metropolitan
counties, as defined in section 473.121, subdivision 4, and receiving financial assistance
as provided under this section.

(c) A metropolitan area active transportation account is established in the special
revenue fund. The account consists of funds as provided by law, and any other money
donated, allotted, transferred, or otherwise provided to the account. Money in the account
may only be expended on a project that is primarily located within metropolitan counties,
as defined in section 473.121, subdivision 4, and receiving financial assistance as provided
under this section.

Subd. 4.

Program administration.

(a) The authority shall establish program
requirements, including:

(1) eligibility for assistance, subject to the requirements under paragraph (b);

(2) a process for solicitation and application that minimizes applicant burdens; and

(3) procedures for award and payment of financial assistance.

(b) Eligible recipients of financial assistance under this section are:

(1) a political subdivision; and

(2) a tax-exempt organization under section 501(c)(3) of the Internal Revenue
Code, as amended.

(c) The authority shall make reasonable efforts to publicize each solicitation
for applications among all eligible recipients, and provide assistance in creating and
submitting applications.

(d) The authority may expend no more than one percent of available funds in a fiscal
year under this section on program administration.

Subd. 5.

State general obligation bond funds.

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 nonmotorized 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.

Subd. 6.

Use of funds.

(a) For a project funded through state bond proceeds under
this section, financial assistance is limited solely to bond-eligible costs.

(b) Subject to paragraph (a), the authority shall determine permissible uses of
financial assistance under this section, which must include:

(1) construction and maintenance of bicycle, trail, and pedestrian infrastructure,
including but not limited to bicycle facilities and centers, and safe routes to school
infrastructure; and

(2) noninfrastructure programming, including activities as specified in section
174.40, subdivision 7a, paragraph (b).

Subd. 7.

Project evaluation and selection.

The authority shall establish a project
evaluation and selection process under this section that is competitive, criteria-based, and
objective. The process must include criteria and prioritization of projects based on:

(1) inclusion of the project in a municipal or regional nonmotorized transportation
system plan;

(2) location of the project in a jurisdiction in which a complete streets policy, as
provided under section 174.75, is in effect;

(3) the extent to which the project supports development of continuous and
convenient safe routes to school;

(4) the extent to which the project supports development of routes to and connections
with educational facilities, centers of employment, governmental services, health care
facilities, food sources, transit facilities, and other community destinations;

(5) general benefits to public health and safety as a result of the project; and

(6) geographic equity in project benefits, as well as benefits in areas or locations
experiencing high rates of pedestrian or bicycle collisions, high rates of health disparities,
and high concentration of poverty.

Subd. 8.

Grant cancellation.

If, five years after execution of a grant agreement,
the authority 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.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 11.

Minnesota Statutes 2014, section 174.42, is amended by adding a subdivision
to read:


Subd. 3.

Funding requirement for greater Minnesota.

(a) In each federal fiscal
year, the commissioner shall spend out of National Highway Performance Program funds
a total amount in federal transportation funds for an active transportation competitive
grant program in greater Minnesota that totals a minimum of $16,000,000 in excess of
the average annual spending on greater Minnesota transportation alternatives projects in
federal fiscal years between October 2009 and September 2012. This requirement must
not reduce the amount of federal transportation funding for metropolitan projects.

(b) The commissioner of transportation shall create and implement the active
transportation competitive grant program. The program must receive funds under this
subdivision and may receive funds from any other source. The commissioner shall
establish criteria for grant awards, in collaboration with experts in bicycle, pedestrian,
trail, and safe routes to school infrastructure. The criteria must clarify statewide priorities,
ensure that grant awards further these statewide priorities, and require grant recipients
to be accountable for their use of program resources. Cities, counties, and townships in
greater Minnesota are eligible to apply for grants for projects related to safe routes to
school infrastructure and noninfrastructure activities, bicycle and pedestrian elements
of a main street program, and planning activities and construction and maintenance of
bicycle, trail, and pedestrian infrastructure.

EFFECTIVE DATE.

This section is effective October 1, 2015.

Sec. 12.

Minnesota Statutes 2014, section 174.52, subdivision 4a, is amended to read:


Subd. 4a.

Rural road safety account; appropriation.

(a) A rural road safety
account is established in the local road improvement fund. Money in the account is
annually appropriated to the commissioner of transportation for expenditure as specified
in this subdivision. Money in the account must be used as grants to counties to assist in
paying the costs of capital improvement projects on county state-aid highways that are
intended primarily to reduce traffic crashes, deaths, injuries, and property damage and
improve safety for all road users
.

(b) The commissioner shall establish procedures for counties to apply for grants
from the rural road safety account and criteria to be used to select projects for funding.
The commissioner shall establish these procedures and criteria in consultation with
representatives appointed by the Association of Minnesota Counties. Eligibility for
project selection must be based on the ability of each proposed project to reduce the
frequency and severity of crashes.

(c) Money in the account must be allocated in each fiscal year as follows:

(1) one-third of money in the account must be used for projects in the counties of
Anoka, Chisago, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington; and

(2) the remainder must be used for projects elsewhere in the state.

Sec. 13.

Minnesota Statutes 2014, section 174.52, subdivision 5, is amended to read:


Subd. 5.

Grant procedures and criteria.

The commissioner shall establish
procedures for statutory or home rule charter cities, towns, and counties to apply for
grants or loans from the fund and criteria to be used to select projects for funding.
The commissioner shall establish these procedures and criteria in consultation with
representatives appointed by the Association of Minnesota Counties, League of Minnesota
Cities, Minnesota Association of Townships, and the appropriate state agency as needed.
The criteria for determining project priority and the amount of a grant or loan must be
based upon consideration of:

(1) the availability of other state, federal, and local funds;

(2) the regional significance of the route;

(3) effectiveness of the proposed project in eliminating a transportation system
deficiency and improve safety for all road users;

(4) the number of persons who will be positively impacted by the project;

(5) the project's contribution to other local, regional, or state economic development
or redevelopment efforts including livestock and other agricultural operations permitted
after the effective date of this section; and

(6) ability of the local unit of government to adequately provide for the safe
operation and maintenance of the facility upon project completion.

Sec. 14.

[219.016] RAILROAD COMPANY ASSESSMENT; ACCOUNT;
APPROPRIATION.

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

(b) The assessment must be by a division of the annual appropriation to the grade
crossing safety improvement account in equal proportion between carriers based on route
miles operated in Minnesota, assessed in equal amounts for 365 days of the calendar year.

(c) The assessments must be deposited in the rail grade crossing safety improvement
account, which is created in the special revenue fund. Money in the account is
appropriated to the commissioner for the development, administration, and construction of
highway-rail grade crossing improvements on rail corridors transporting crude oil, and
other selected routes, including those carrying hazardous materials. Improvements may
include upgrades to existing protection systems, the closing of crossings and necessary
roadwork, and reconstruction of at-grade crossings to full grade separations. Funds in
the account are available until expended.

Sec. 15.

Minnesota Statutes 2014, section 222.50, subdivision 7, is amended to read:


Subd. 7.

Expenditures.

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

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

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

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

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

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

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

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

(8) for expenditures made before July 1, 2017, to pay the state matching portion
of grants under the federal Transportation Investment Generating Economic Recovery
(TIGER) program of the United States Department of Transportation; and

(9) to fund rail planning studies; and

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

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

Sec. 16.

Minnesota Statutes 2014, section 297A.94, is amended to read:


297A.94 DEPOSIT OF REVENUES.

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

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

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

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

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

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

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

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

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

(e) 72.43 percent of the revenues, including interest and penalties, transmitted to
the commissioner under section 297A.65, must be deposited by the commissioner in the
state treasury as follows:

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

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

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

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

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

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

(g) Beginning July 15, 2016, and by July 15 of each year, the commissioner of
revenue shall transfer an amount equal to the estimated revenues, including interest
and penalties, collected in tax from the sale or purchase of new or used bicycles by a
person who is required to have or voluntarily obtains a permit under section 297A.83,
subdivision 1, from the general fund to be divided equally between the greater Minnesota
active transportation account and the metropolitan area active transportation account
under section 174.38, subdivision 3. Beginning June 30, 2016, and by June 30 of every
fourth year thereafter, the commissioner of revenue must estimate the percentage of total
sales tax revenues collected in the previous calendar year that is attributable to sales
and purchases of bicycles, based on available federal data and Department of Revenue
consumption models. The amount of sales tax revenue to be transferred to the active
transportation account on each July 15 is equal to the most recently calculated percentage
estimate under this paragraph multiplied by the total sales tax revenues collected in the
previous calendar year. For purposes of this section, "bicycle" has the meaning given in
section 169.011, subdivision 4, and does not include bicycle parts.

(g) (h) The revenues deposited under paragraphs (a) to (f) in, transferred to, or
credited to a fund other than the general fund by a provision in this chapter
do not
include the revenues, including interest and penalties, generated by the sales tax imposed
under section 297A.62, subdivision 1a, which must be deposited as provided under the
Minnesota Constitution, article XI, section 15.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 17.

[299D.11] MOTORCYCLE PROFILING.

Subdivision 1.

Purpose.

The legislature finds that the reality or public perception of
motorcycle profiling alienates people from police, hinders community policing efforts, and
causes law enforcement to lose credibility and trust among the people law enforcement is
sworn to protect and serve. No stop initiated by a peace officer should be made without
a legitimate reason; the fact that someone rides a motorcycle or wears motorcycle
paraphernalia is not a legitimate reason. Law enforcement policies and training programs
must emphasize the need to respect the balance between the rights of all persons to be free
from unreasonable governmental intrusions and law enforcement's need to enforce the law.

Subd. 2.

Definition.

For purposes of this section, "motorcycle profiling" means
the illegal use of the fact that a person rides a motorcycle or wears motorcycle-related
accouterments as a factor in deciding to stop and question, take enforcement action,
arrest, or search a person or vehicle with or without a legal basis under the United States
Constitution or Minnesota Constitution.

Subd. 3.

Statewide model policy.

By October 1, 2015, the State Patrol, after
consulting with the Department of Public Safety Motorcycle Safety Advisory Task
Force, the Department of Public Safety, the Minnesota Chiefs of Police Association, the
Minnesota Sheriffs Association, the Minnesota Police and Peace Officers Association,
and the Board of Peace Officer Standards and Training, shall develop a statewide model
training policy designed to eliminate motorcycle profiling from law enforcement in the
state. The model antimotorcycle profiling policy must include training in:

(1) acts that constitute motorcycle profiling;

(2) tactics for avoiding motorcycle profiling; and

(3) methods for peace officers and their supervisors to identify and respond to
motorcycle profiling by other peace officers.

Subd. 4.

Agency policies required.

(a) By November 1, 2016, the chief law
enforcement officer of each state and local law enforcement agency must establish and
enforce a written antimotorcycle profiling policy governing the conduct of peace officers
engaged in stops of citizens. The chief law enforcement officer shall ensure that each
peace officer receives a copy of the agency's antimotorcycle profiling policy. The chief
law enforcement officer also must ensure that each peace officer is aware of the policy's
purpose and prohibited conduct.

(b) The policy must, at a minimum, comply with the requirements of the model
policy adopted by the State Patrol under subdivision 3 and require peace officers to give
their name and badge number to each motorcycle operator stopped for any reason.

(c) Each state and local law enforcement agency must certify to the State Patrol that
the agency has adopted a written policy in compliance with the State Patrol's model policy.

Subd. 5.

Compliance reviews.

The State Patrol has authority to inspect state and
local agency policies to ensure compliance with subdivision 4. The State Patrol may
conduct an inspection based upon a complaint it receives about a particular agency or
through a random selection process.

Sec. 18.

Minnesota Statutes 2014, section 357.021, subdivision 7, is amended to read:


Subd. 7.

Disbursement of surcharges by commissioner of management and
budget.

(a) Except as provided in paragraphs (b), (c), and (d), and (e), the commissioner
of management and budget shall disburse surcharges received under subdivision 6 and
section 97A.065, subdivision 2, as follows:

(1) one percent shall must be credited to the peace officer training account in the
game and fish fund to provide peace officer training for employees of the Department of
Natural Resources who are licensed under sections 626.84 to 626.863, and who possess
peace officer authority for the purpose of enforcing game and fish laws;

(2) 39 percent shall must be credited to the peace officers training account in the
special revenue fund; and

(3) 60 percent shall must be credited to the general fund.

(b) The commissioner of management and budget shall credit $3 of each surcharge
received under subdivision 6 and section 97A.065, subdivision 2, except for the $12
parking surcharge,
to the general fund.

(c) In addition to any amounts credited under paragraph (a), the commissioner of
management and budget shall credit $47 of each surcharge received under subdivision 6
and section 97A.065, subdivision 2, and the $12 parking surcharge, to the general fund.

(d) If the Ramsey County Board of Commissioners authorizes imposition of the
additional $1 surcharge provided for in subdivision 6, paragraph (a), the court administrator
in the Second Judicial District shall transmit the surcharge to the commissioner of
management and budget. The $1 special surcharge is deposited in a Ramsey County
surcharge account in the special revenue fund and amounts in the account are appropriated
to the trial courts for the administration of the petty misdemeanor diversion program
operated by the Second Judicial District Ramsey County Violations Bureau.

(e) The commissioner of management and budget shall credit the $12 parking
surcharge to the highway user tax distribution fund.

EFFECTIVE DATE.

This section is effective July 1, 2015, and applies to
surcharges on parking violations committed on and after that date.

Sec. 19.

Minnesota Statutes 2014, section 360.305, subdivision 4, is amended to read:


Subd. 4.

Costs allocated; local contribution; hangar construction account.

(a)
Except as otherwise provided in this subdivision Annually by June 1, the commissioner
of transportation shall require as a condition of assistance by the state that the establish
local contribution rates which will apply to a
political subdivision, municipality, or public
corporation make a substantial contribution to the cost of the construction, improvement,
maintenance, or operation of the airport, in connection with which the assistance of the
state is sought. These costs are referred to as project costs
when applying for state or
federal funding assistance to construct, improve, maintain, or operate an airport, or to
acquire land for airport facilities or clear zones. If the commissioner does not establish
local contribution rates by June 1, the previous rates apply
.

(b) For any airport, whether key, intermediate, or landing strip, where only state and
local funds are to be used, the contribution shall be not less than one-fifth of the sum of:

(1) the project costs;

(2) acquisition costs of the land and clear zones, which are referred to as acquisition
costs.
The commissioner may pay all costs beyond the local contribution. Local
contribution rates shall not be less than five percent of the total cost of the activity or
acquisition, except that the commissioner may require less than five percent for research
projects, radio or navigational aids, activities, or acquisitions for which federal funds are
available to cover more than 90 percent of the total cost, or as otherwise necessary to
respond to an emergency.

(c) For any airport where federal, state, and local funds are to be used, the
contribution shall not be less than five percent of the sum of the project costs and
acquisition costs.
The commissioner's establishment of local contribution rates is not
subject to the rulemaking requirements of chapter 14.

(d) The commissioner may pay the total cost of radio and navigational aids.

(e) Notwithstanding paragraph (b) or (c), the commissioner may pay all of the
project costs of a new landing strip, but not an intermediate airport or key airport, or may
pay an amount equal to the federal funds granted and used for a new landing strip plus
all of the remaining project costs; but the total amount paid by the commissioner for the
project costs of a new landing strip, unless specifically authorized by an act appropriating
funds for the new landing strip, shall not exceed $200,000.

(f) Notwithstanding paragraph (b) or (c), the commissioner may pay all the project
costs for research and development projects, including, but not limited to noise abatement;
provided that in no event shall the sums expended under this paragraph exceed five
percent of the amount appropriated for construction grants.

(g) (d) To receive aid under this section for project costs or for acquisition costs, the
municipality must enter into an agreement with the commissioner giving assurance that
the airport will be operated and maintained in a safe, serviceable manner for aeronautical
purposes only for the use and benefit of the public:

(1) for 20 years after the date that the municipality receives any state funds for
project construction or improvement costs are received by the municipality; and

(2) for 99 years after the date that the municipality receives any state funds for land
acquisition costs are received by the municipality. If any land acquired with state funds
ceases to be used for aviation purposes, the municipality shall repay the state airports fund
the same percentage of the appraised value of the property as that percentage of the costs
of acquisition and participation provided by the state to acquire the land.

The agreement may contain other conditions as the commissioner deems reasonable.

(h) (e) The commissioner shall establish a hangar construction revolving account,
which shall be used for the purpose of financing the construction of hangar buildings to
be constructed by municipalities owning airports. All municipalities owning airports are
authorized to enter into contracts for the construction of hangars, and contracts with
the commissioner for the financing of hangar construction for an amount and period of
time as may be determined by the commissioner and municipality. All receipts from the
financing contracts shall be deposited in the hangar construction revolving account and
are reappropriated for the purpose of financing construction of hangar buildings. The
commissioner may pay from the hangar construction revolving account 80 percent of the
cost of financing construction of hangar buildings. For purposes of this paragraph, the
construction of hangars shall include their design.
The commissioner shall transfer up to
$4,400,000 from the state airports fund to the hangar construction revolving account.

(i) (f) The commissioner may pay a portion of the purchase price of any contribute
to costs incurred by any municipality for
airport maintenance and operations, safety
equipment, and of the actual airport snow removal costs incurred by any municipality.
The portion to be paid by the state shall not exceed two-thirds of the cost of the purchase
price or snow removal. To receive aid a municipality must enter into an agreement of the
type referred to in paragraph (g)
.

(j) (g) This subdivision applies only to project costs or acquisition costs of
municipally owned airports incurred after June 1, 1971.

Sec. 20.

[473.1296] MADE IN AMERICA.

In all construction and maintenance projects, the council shall, to the greatest extent
feasible, utilize products, materials, and equipment that are made in America and shall
include this requirement in its contract specifications.

Sec. 21.

Minnesota Statutes 2014, section 473.915, is amended to read:


473.915 PROCUREMENTS.

Subdivision 1.

Review by Legislative Advisory Commission.

All proposed
Metropolitan Council procurements over $125,000,000 must be reviewed by the
members of the Legislative Advisory Commission under section 3.30 and the ranking
minority members of the house of representatives and senate committees or divisions
responsible for overseeing the items subject to the proposed procurement. The chair
of the Metropolitan Council shall give notice to the Legislative Advisory Commission
secretary when a procurement over $125,000,000 is being considered. The commission
shall take testimony on the procurements.

Subd. 2.

Review by Transportation Accessibility Advisory Committee.

The council shall consult with the Transportation Accessibility Advisory Committee
concerning all proposed Metropolitan Council procurements of transit vehicles and shall
consider the committee's input before ordering vehicles.

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.

Sec. 22. COST SHARE POLICY.

The commissioner of transportation, in consultation with representatives of local
units of government, shall create and adopt a policy concerning cost participation
for cooperative construction projects and maintenance responsibilities between the
Department of Transportation and local units of government. The policy must minimize
the share of cooperative project costs to be funded by the local units of government,
while complying in all respects with the state constitutional requirements concerning
allowable uses of the trunk highway fund. The policy must be completed and adopted by
the commissioner no later than September 1, 2015.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 23. PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.

Subdivision 1.

Public-private partnership initiatives.

(a) The commissioner
of transportation and Metropolitan Council are authorized to consider and utilize
public-private partnership procurement methods for up to three pilot projects as provided
in this section. Utilization of public-private partnerships is a recognition of the importance
to the state of an efficient and safe transportation system, and the necessity of developing
alternative funding sources to supplement traditional sources of transportation revenues.
A public-private partnership initiative must take advantage of private sector efficiencies in
design and construction, along with expertise in finance and development, and provide a
better long-term value for the state than could be obtained through traditional procurement
methods.

(b) Notwithstanding Minnesota Statutes, section 160.98, or any other law to the
contrary, the commissioner or council 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 or council may consider
include, but are not limited to, toll facilities, BOT facilities, BTO facilities, user fees,
construction payments, joint development agreements, negotiated exactions, air rights
development, street improvement districts, or tax increment financing districts for transit.
For the purposes this section, toll facilities, BOT facilities, and BTO facilities have the
meanings given under Minnesota Statutes, section 160.84.

(c) As part of the pilot program, the commissioner and council are directed to form
an independent advisory and oversight office, the Joint Program Office for Economic
Development and Alternative Finance. The office shall consist of the commissioner of
management and budget, the commissioner of employment and economic development,
the commissioner of administration, the commissioner of transportation, the Metropolitan
Council, and one representative each from the American Council of Engineering
Companies - Minnesota chapter, the Central Minnesota Transportation Alliance, the
Counties Transit Improvement Board, and the Minnesota County Engineers Association.
In addition, the commissioner and Metropolitan Council shall invite the Federal Highway
Administration and the Federal Transit Administration to participate in the office's
activities. The office's duties shall include, but are not limited to, reviewing and approving
projects proposed under this section, reviewing any contractual or financial agreements
to ensure program requirements are met, and ensuring that any proposed or executed
agreement serves the public interest.

Subd. 2.

Pilot program restrictions and project selection.

(a) The commissioner
or council may receive or solicit and evaluate proposals to build, operate, and finance
projects that are not inconsistent with the commissioner's most recent statewide
transportation plan or the council's most recent transportation policy plan. If the
department or council receives an unsolicited proposal, the department or council shall
publish a notice in the State Register at least once a week for two weeks stating that the
department or council has received the proposal and will accept, for 120 days after the
initial date of publication, other proposals for the same project purpose. The private
proposer must be selected on a competitive basis.

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

(c) If the commissioner or council 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.

(d) The commissioner and council may only consider new projects for a
public-private partnership. The commissioner and council are prohibited from considering
projects involving existing infrastructure for a public-private partnership, unless the
proposed project adds capacity to the existing infrastructure.

Subd. 3.

Evaluation and selection of private entity and project.

(a) The
commissioner and council shall contract with one or more consultants to assist in proposal
evaluation. The consultant must possess expertise and experience in public-private
partnership project evaluation methodology, such as value for money, costs of
public-private partnership compared with costs of public project delivery, and cost-benefit
analysis.

(b) When soliciting, evaluating, and selecting a private entity with which to enter
into a public-private partnership and before selecting a project, the commissioner or
council must consider:

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

(2) the proposed cost of and financial plan for the project;

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

(4) the project's proposed design, operation, and feasibility;

(5) length and extent of transportation and transit service disruption;

(6) comments from local citizens and affected jurisdictions;

(7) benefits to the public;

(8) the safety record of the private entity; and

(9) any other criteria the commissioner or council deems appropriate.

(c) The independent advisory and oversight office established under subdivision
1, paragraph (c), shall review proposals evaluated by the commissioner or council to
ensure the requirements of this section are being met. The independent advisory and
oversight office shall first determine whether the project, as proposed, serves the public
interest. In making this determination, the office must identify and consider advantages
and disadvantages for various stakeholders, including taxpayers, workers, transportation
and transit providers and operators, transportation and transit users, commercial vehicle
operators, and the general public, including the impact on the state's economy. If the
proposed project serves the public interest, the office must evaluate the proposals
according to the criteria specified in this section.

Subd. 4.

Public-private agreement.

(a) A public-private agreement between the
commissioner or the council and a private entity shall, at a minimum, specify:

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

(2) the term of the public-private agreement;

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

(4) a description of the actions the commissioner or council may take to ensure
proper maintenance of the project;

(5) whether user fees will be collected on the project and the basis by which the user
fees shall be determined and modified along with identification of the public agency that
will determine and modify fees;

(6) compliance with applicable federal, state, and local laws;

(7) grounds for termination of the public-private agreement by the commissioner
or council;

(8) adequate safeguards for the traveling public and residents of the state in event of
default on the contract;

(9) financial protection for the state in the event of default; and

(10) procedures for amendment of the agreement.

(b) A public-private agreement between the commissioner or council and a private
entity may provide for:

(1) review and approval by the commissioner or council of the private entity's plans
for the development and operation of the project;

(2) inspection by the commissioner or council of construction and improvements
to the project;

(3) maintenance by the private entity of a liability insurance policy;

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

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

(6) financing obligations of the commissioner or council and the private entity;

(7) apportionment of expenses between the commissioner or council and the private
entity;

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

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

(10) the terms and conditions of indemnification of the private entity by the
commissioner or council;

(11) assignment, subcontracting, or other delegations of responsibilities of (i)
the private entity, or (ii) the commissioner or council under agreement to third parties,
including other private entities or state agencies;

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

(13) traffic enforcement and other policing issues; and

(14) any other terms and conditions the commissioner or council deems appropriate.

(c) The independent advisory and oversight office established under subdivision
1, paragraph (c), shall review any proposed contractual agreement prior to execution
in order to ensure that the contract serves the public interest and the requirements of
this section are met.

Subd. 5.

Funding from federal government.

(a) The commissioner or council 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.

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

(c) The commissioner or council shall seek to maximize project funding from
nonstate sources and may combine federal, state, local, and private funds to finance a
public-private partnership pilot project.

Subd. 6.

Reporting.

By August 1, 2016, and annually by August 1 thereafter, the
commissioner and council 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 list of all agreements executed under the pilot program authority. The
list must identify each agreement, the contracting entities, contract amount and duration,
any repayment requirements, and provide an update on the project's progress. The list
may be submitted electronically and is subject to Minnesota Statutes, section 3.195,
subdivision 1.

EFFECTIVE DATE.

This section is effective the day after an appropriation is
effective to pay administrative expenses creating and operating the Joint Program Office
for Economic Development and Alternative Finance, hiring a consultant, and preparing
required reports.

Sec. 24. DEPARTMENT OF TRANSPORTATION LAND ACQUISITION.

As part of the construction of a bridge and bridge approaches along Trunk Highway
23 in the city of Duluth, the commissioner of transportation shall acquire by purchase or
gift, in fee or a lesser estate as the commissioner deems necessary, the lands and properties
located in St. Louis County and consisting of three parcels identified and described as
St. Louis County Property Tax Parcel Numbers 010-3510-08110, 101-3510-08120, and
010-3510-08130.

Sec. 25. TRANSPORTATION PROJECT SELECTION PROCESS.

Subdivision 1.

Adoption of process and public input.

The commissioner of
transportation shall, after consultation with metropolitan planning organizations, regional
development commissions, area transportation partnerships, local governments, and the
Metropolitan Council, draft a proposed transportation project data-driven evaluation
process to provide an objective and consistent analysis to assist in developing the
statewide transportation plan and prioritization of highway construction, reconstruction,
and improvement projects in the state transportation improvement program. No later than
September 1, 2015, the proposed process must be reported to the chairs and ranking
minority members of the senate and house of representatives committees on transportation
policy and finance and publicized, along with a schedule for public hearings and additional
opportunities for public input electronically and at locations throughout the state. No later
than January 10, 2016, after public comment has been heard and incorporated into the
proposed evaluation process, the commissioner shall adopt a final process for use in
highway project investment decisions on and after March 1, 2016.

Subd. 2.

Factors in analysis.

The process must be based on objective, consistent,
and quantifiable analysis. Factors in the analysis must include return on investment,
benefit-cost, local rankings, safety, congestion mitigation, economic development,
accessibility, environmental quality, regional and metropolitan-rural balance, and land
use. The process may assign different weights to factors in evaluating projects on the
trunk highway system, the county state-aid highway system, and the municipal state-aid
street system.

Subd. 3.

Exemptions.

A proposed project is exempt from the process if it is:

(1) funded by a grant from:

(i) the corridors of commerce program under Minnesota Statutes, section 161.088;

(ii) the transportation economic development program under Minnesota Statutes,
section 174.12; and

(iii) the joint powers board under Minnesota Statutes, section 297A.992, subdivision
6; or

(2) preservation, maintenance, capital preventive treatment or safety project that
does not increase capacity of the infrastructure, or if subjecting it to the evaluation process
would result in a loss of federal funds.

Subd. 4.

Information on department's Web site.

For each proposed project
evaluated under this process, the applicable scoring process, the score for each factor,
and the overall score are public information and must be publicized on the department's
Web site.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 26. ACTIVE TRANSPORTATION PROGRAM DEVELOPMENT.

(a) By October 1, 2015, the Advisory Committee on Nonmotorized Transportation
under Minnesota Statutes, section 174.37, shall develop and submit recommendations to
each administering authority under Minnesota Statutes, section 174.38, for developing
project evaluation and selection processes under Minnesota Statutes, section 174.38,
subdivision 7. The advisory committee may consult with representatives from the
Bicycle Alliance of Minnesota, Minnesota Chamber of Commerce, Metropolitan
Council Transportation Accessibility Advisory Committee, Minnesota Department of
Transportation district area transportation partnerships, Minnesota State Council on
Disability, organizations representing elderly populations, and public health organizations
with experience in active transportation.

(b) In its next annual report under Minnesota Statutes, section 174.37, subdivision
4, the advisory committee shall include a summary of the recommendations under this
section and submit a copy to the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation policy and finance. The report is subject
to Minnesota Statutes, section 3.195.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 27. REPORT ON DEDICATED FUND EXPENDITURES.

By January 15, 2016, the commissioner of management and budget shall submit
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation finance. The report must list detailed expenditures and
transfers from the trunk highway fund and highway user tax distribution fund for fiscal
years 2010 through 2015, and shall include information on the purpose of each expenditure.

Sec. 28. ROAD DESIGN STANDARDS.

By August 15, 2016, the commissioner of transportation shall, in collaboration
with city and county engineers, establish and adopt design standards and guidelines to
be applied consistently to trunk highways, county state-aid highways, and municipal
state-aid streets with similar characteristics. The standards and guidelines must align the
state-aid standards with the Department of Transportation trunk highway standards and
technical memoranda as appropriate. The commissioner shall report the adopted standards
and guidelines to the chairs and ranking minority members of the senate and house of
representatives committees with jurisdiction over transportation policy by August 15,
2016, and present an interim report by March 15, 2016.

EFFECTIVE DATE.

This section is effective the day following final enactment.

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1.30 1.31 1.32 2.1 2.2 2.3 2.4 2.5 2.6
2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19
2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5 3.6
3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22
3.23 3.24 3.25 3.26 3.27 3.28
3.29 3.30
4.1 4.2
4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11
4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 5.1 5.2 5.3 5.4
5.5 5.6 5.7
5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18
5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27
5.28 5.29 5.30 5.31 5.32 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 7.36 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21
8.22 8.23 8.24
8.25 8.26
8.27 8.28 8.29 8.30 8.31 8.32 8.33 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 10.1 10.2 10.3 10.4 10.5 10.6
10.7 10.8
10.9 10.10
10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28
10.29 10.30 10.31 10.32 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10
11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34
12.35 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24
13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 14.36 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 15.35 15.36 16.1 16.2
16.3 16.4 16.5
16.6 16.7
16.8
16.9 16.10
16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 17.1 17.2
17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15
17.16
17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26
17.27 17.28 17.29 17.30 17.31
18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14
18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 19.1 19.2 19.3
19.4
19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 19.35 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22
20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35 21.36 22.1 22.2
22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10
22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32
22.33 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25
23.26 23.27
23.28 23.29 23.30 23.31 23.32 23.33 23.34 24.1 24.2
24.3 24.4 24.5 24.6
24.7 24.8
24.9
24.10 24.11
24.12 24.13 24.14 24.15
24.16 24.17
24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31
25.1 25.2
25.3 25.4 25.5 25.6 25.7 25.8 25.9
25.10 25.11
25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23
25.24 25.25
25.26 25.27 25.28 25.29 25.30
25.31 25.32
26.1 26.2 26.3 26.4 26.5
26.6 26.7
26.8 26.9 26.10 26.11 26.12
26.13 26.14
26.15 26.16 26.17 26.18 26.19
26.20 26.21
26.22 26.23 26.24 26.25 26.26
26.27 26.28
26.29 26.30 27.1 27.2 27.3
27.4 27.5
27.6 27.7 27.8 27.9
27.10 27.11
27.12 27.13 27.14 27.15
27.16 27.17
27.18 27.19 27.20 27.21
27.22 27.23
27.24 27.25 27.26 27.27 27.28 27.29 27.30 28.1 28.2 28.3 28.4 28.5 28.6 28.7
28.8 28.9
28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21
28.22 28.23
28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18
29.19 29.20
29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29
29.30 29.31
29.32 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14
30.15 30.16
30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24
31.25 31.26
31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35 33.1 33.2
33.3 33.4
33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17
33.18 33.19
33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8
34.9 34.10
34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 35.1 35.2
35.3 35.4
35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14
35.15 35.16
35.17 35.18 35.19 35.20 35.21 35.22 35.23
35.24
35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 36.1 36.2 36.3 36.4 36.5 36.6
36.7 36.8
36.9 36.10 36.11 36.12 36.13
36.14 36.15
36.16 36.17
36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30
36.31 36.32 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8
37.9
37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 38.35 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23
39.24
39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 40.1 40.2
40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14
40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23
40.24 40.25
40.26 40.27 40.28 40.29 40.30 40.31 40.32
41.1 41.2
41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15
41.16
41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28
41.29
41.30 41.31 42.1 42.2 42.3 42.4 42.5
42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 42.35 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 43.36 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35 44.36 45.1 45.2 45.3 45.4 45.5 45.6 45.7
45.8
45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29
45.30 45.31 45.32 45.33
46.1
46.2 46.3
46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27
46.28 46.29 46.30 46.31 46.32 46.33 46.34 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11
47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 48.1 48.2 48.3 48.4 48.5 48.6
48.7 48.8 48.9 48.10
48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 49.1 49.2
49.3 49.4 49.5 49.6 49.7 49.8 49.9
49.10
49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27
49.28 49.29 49.30 49.31 49.32 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17
50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34
51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 51.34 51.35 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24
53.25
53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11
54.12
54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30
54.31 54.32 54.33 54.34 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15
55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32
55.33 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26
56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 56.35 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 57.35 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29
58.30
58.31 58.32 58.33 58.34 58.35 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35 59.36
60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27
60.28 60.29
60.30 60.31 60.32 60.33 60.34 60.35 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 61.35 61.36 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26
62.27 62.28 62.29 62.30
62.31 62.32 62.33 62.34 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10
63.11 63.12 63.13
63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22
63.23
63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 65.36 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 67.35
68.1 68.2 68.3 68.4
68.5 68.6 68.7 68.8 68.9 68.10 68.11
68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13
69.14
69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30
69.31
69.32 70.1 70.2 70.3 70.4 70.5
70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15
70.16

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569