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HF 861

1st Unofficial Engrossment - 90th Legislature (2017 - 2018) Posted on 04/05/2017 12:12pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Unofficial Engrossment

1.1A bill for an act
1.2relating to transportation; authorizing sale and issuance of trunk highway bonds;
1.3redistributing five percent set-aside from highway user tax distribution fund;
1.4rededicating certain tax proceeds; authorizing an additional sales and use tax;
1.5amending various transportation and transit policies; amending policies relating
1.6to the Department of Public Safety; requiring reports; establishing a task force;
1.7appropriating money;amending Minnesota Statutes 2016, sections 85.016; 116.03,
1.8by adding a subdivision; 117.189; 160.02, subdivision 27, by adding subdivisions;
1.9160.262, subdivisions 1, 3, 4; 160.266, subdivisions 3, 4, 5, by adding subdivisions;
1.10161.081, subdivision 1; 161.088, subdivisions 4, 5, 7, by adding a subdivision;
1.11161.115, subdivision 190; 161.14, by adding a subdivision; 161.21, subdivision
1.121; 161.321, subdivision 6; 161.44, subdivisions 5, 6a, by adding a subdivision;
1.13168.013, subdivision 1d; 168.021, subdivisions 1, 2, 2a; 168A.09, subdivision 1;
1.14168A.141; 168A.142; 169.14, by adding a subdivision; 169.345, subdivisions 1,
1.153; 169.80, subdivision 1; 169.829, by adding a subdivision; 169.865, subdivision
1.163; 171.06, subdivision 2a; 171.12, subdivision 6; 174.03, subdivisions 1a, 1c;
1.17221.031, by adding a subdivision; 256B.15, subdivision 1a; 297A.815, subdivision
1.183; 297A.94; 297A.992, subdivision 2; 297B.01, subdivision 16; 473.388,
1.19subdivision 2; 473.4051, subdivision 2; proposing coding for new law in Minnesota
1.20Statutes, chapters 168; 168A; 174; repealing Minnesota Statutes 2016, sections
1.21160.262, subdivision 2; 160.265; 160.266, subdivisions 1, 2; 161.115, subdivision
1.2232; Minnesota Rules, parts 8810.6000; 8810.6100; 8810.6300; 8810.6400;
1.238810.6500; 8810.6600; 8810.6700; 8810.6800; 8810.6900; 8810.7000; 8810.9910;
1.248810.9911; 8810.9912; 8810.9913.
1.25BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.26ARTICLE 1
1.27TRANSPORTATION APPROPRIATIONS

1.28
Section 1. TRANSPORTATION APPROPRIATIONS.
1.29The sums shown in the columns marked "Appropriations" are appropriated to the agencies
1.30and for the purposes specified in this article. The appropriations are from the trunk highway
1.31fund, or another named fund, and are available for the fiscal years indicated for each purpose.
2.1The figures "2018" and "2019" used in this article mean that the appropriations listed under
2.2them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
2.3"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
2.4is fiscal years 2018 and 2019.
2.5
APPROPRIATIONS
2.6
Available for the Year
2.7
Ending June 30
2.8
2018
2019

2.9
2.10
Sec. 2. DEPARTMENT OF
TRANSPORTATION
2.11
Subdivision 1.Total Appropriation
$
2,928,633,000
$
2,917,420,000
2.12
Appropriations by Fund
2.13
2018
2019
2.14
General
19,158,000
18,058,000
2.15
Airports
31,812,000
22,609,000
2.16
C.S.A.H.
769,644,000
800,066,000
2.17
M.S.A.S.
195,858,000
203,463,000
2.18
Special Revenue
10,000,000
0
2.19
Trunk Highway
1,902,161,000
1,873,224,000
2.20The amounts that may be spent for each
2.21purpose are specified in the following
2.22subdivisions.
2.23
Subd. 2.Multimodal Systems
2.24(a) Aeronautics
2.25
(1) Airport Development and Assistance
26,501,000
17,298,000
2.26This appropriation is from the state airports
2.27fund and must be spent according to
2.28Minnesota Statutes, section 360.305,
2.29subdivision 4
.
2.30$2,334,000 in the first year is for a grant to
2.31the city of Rochester to design, rehabilitate,
2.32demolish, and expand portions of the existing
2.33passenger terminal building at the Rochester
2.34International Airport, provided that this
2.35amount also includes money to remodel,
3.1construct, furnish, and equip the existing
3.2passenger terminal building and associated
3.3appurtenances to meet the United States
3.4Customs and Border Protection and
3.5Transportation Security Administration
3.6standards for safety, security, and processing
3.7time to accommodate domestic and
3.8international flights. The capital improvements
3.9paid for with this appropriation may be used
3.10as the local contribution required by
3.11Minnesota Statutes, section 360.305,
3.12subdivision 4. This appropriation may be used
3.13to reimburse the city for costs incurred after
3.14May 1, 2016. This appropriation is not
3.15available until the commissioner of
3.16management and budget has determined that
3.17at least an equal amount has been committed
3.18to the project from nonstate sources. Work
3.19that may be completed with this appropriation
3.20includes but is not limited to (i) site
3.21preparation, including utilities, site civil work,
3.22testing, and construction administration
3.23services, (ii) the relocation, modification, and
3.24addition of airline ticket counters, baggage
3.25claim devices, public spaces, offices,
3.26restrooms, support space, break rooms,
3.27lockers, equipment storage, communications,
3.28hallways, building signage, medical visitor
3.29rooms, special needs accommodations, hold
3.30rooms, secure storage, equipment maintenance
3.31area, and building engineering and technology
3.32systems, (iii) improvements needed outside
3.33the terminal to remove, restore, and tie into
3.34adjacent utilities, sidewalks, driveways,
3.35parking lots, and aircraft aprons, and (iv) the
4.1construction of covered exterior equipment
4.2storage. This is a onetime appropriation.
4.3$6,619,000 in the first year is to provide the
4.4federal match to design and construct runway
4.5infrastructure at the Duluth International and
4.6Sky Harbor Airports in accordance with
4.7Minnesota Statutes, section 360.017. For the
4.8purposes of this clause, the commissioner may
4.9waive the requirements of Minnesota Statutes,
4.10section 360.305, subdivision 4, paragraph (b).
4.11This appropriation is for costs incurred after
4.12March 1, 2016, and is available until and must
4.13be encumbered by June 30, 2017. This
4.14appropriation is not available until the
4.15commissioner of management and budget
4.16determines that an equal amount is committed
4.17from nonstate sources. This is a onetime
4.18appropriation.
4.19$250,000 in the first year is for an air transport
4.20optimization planning study for the St. Cloud
4.21Regional Airport, which must be
4.22comprehensive and market-based, using
4.23economic development and air service
4.24expertise to research, analyze, and develop
4.25models and strategies that maximize the return
4.26on investments made to enhance the use and
4.27impact of the St. Cloud Regional Airport. This
4.28is a onetime appropriation.
4.29The base appropriation in each of fiscal years
4.302020 and 2021 is $15,298,000.
4.31Notwithstanding Minnesota Statutes, section
4.3216A.28, subdivision 6 , and unless otherwise
4.33stated in this clause for a specific project, this
4.34appropriation is available for five years after
4.35appropriation. If the appropriation for either
5.1year is insufficient, the appropriation for the
5.2other year is available for it.
5.3
(2) Aviation Support and Services
6,790,000
6,934,000
5.4
Appropriations by Fund
5.5
2018
2019
5.6
Airports
5,311,000
5,311,000
5.7
Trunk Highway
1,479,000
1,623,000
5.8$80,000 in each year is from the state airports
5.9fund for the Civil Air Patrol.
5.10
(b) Transit
18,091,000
18,118,000
5.11
Appropriations by Fund
5.12
2018
2019
5.13
General
17,245,000
17,245,000
5.14
Trunk Highway
846,000
873,000
5.15
(c) Safe Routes to School
500,000
500,000
5.16This appropriation is from the general fund
5.17for the safe routes to school program under
5.18Minnesota Statutes, section 174.40.
5.19
(d) Freight
6,706,000
5,778,000
5.20
Appropriations by Fund
5.21
2018
2019
5.22
General
1,356,000
256,000
5.23
Trunk Highway
5,350,000
5,522,000
5.24$1,100,000 in the first year is from the general
5.25fund for port development assistance program
5.26grants under Minnesota Statutes, chapter
5.27457A. Any improvements made with the
5.28proceeds of these grants must be publicly
5.29owned. This is a onetime appropriation and is
5.30available in the second year.
5.31
Subd. 3.State Roads
5.32
(a) Operations and Maintenance
332,773,000
343,159,000
5.33
(b) Program Planning and Delivery
257,479,000
265,542,000
6.1$130,000 in each year is available for
6.2administrative costs of the targeted group
6.3business program.
6.4$266,000 in each year is available for grants
6.5to metropolitan planning organizations outside
6.6the seven-county metropolitan area.
6.7$900,000 in each year is available for grants
6.8for transportation studies outside the
6.9metropolitan area to identify critical concerns,
6.10problems, and issues. These grants are
6.11available: (1) to regional development
6.12commissions; (2) in regions where no regional
6.13development commission is functioning, to
6.14joint powers boards established under
6.15agreement of two or more political
6.16subdivisions in the region to exercise the
6.17planning functions of a regional development
6.18commission; and (3) in regions where no
6.19regional development commission or joint
6.20powers board is functioning, to the
6.21department's district office for that region.
6.22$1,000,000 in each year is available for
6.23management of contaminated and regulated
6.24material on property owned by the Department
6.25of Transportation, including mitigation of
6.26property conveyances, facility acquisition or
6.27expansion, chemical release at maintenance
6.28facilities, and spills on the trunk highway
6.29system where there is no known responsible
6.30party. If the appropriation for either year is
6.31insufficient, the appropriation for the other
6.32year is available for it.
6.33
(c) State Road Construction
1,009,396,000
942,268,000
6.34This appropriation is for the actual
6.35construction, reconstruction, and improvement
7.1of trunk highways, including design-build
7.2contracts, internal department costs associated
7.3with delivering the construction program, and
7.4consultant usage to support these activities.
7.5This includes the cost of actual payment to
7.6landowners for lands acquired for highway
7.7rights-of-way, payment to lessees, interest
7.8subsidies, and relocation expenses.
7.9This appropriation may be used for the
7.10restoration of former trunk highways that have
7.11reverted to counties or to statutory or home
7.12rule charter cities, or for trunk highways that
7.13will be restored and subsequently turned back
7.14by agreement between the commissioner and
7.15the local road authority, where "restoration"
7.16means the level of effort required to improve
7.17the route that will be turned back to an
7.18acceptable condition as determined by
7.19agreement made between the commissioner
7.20and the county or city before the route is
7.21turned back.
7.22The commissioner may expend up to one-half
7.23of one percent of the federal appropriations
7.24under this paragraph as grants to opportunity
7.25industrialization centers and other nonprofit
7.26job training centers for job training programs
7.27related to highway construction.
7.28The commissioner may transfer up to
7.29$15,000,000 each year to the transportation
7.30revolving loan fund.
7.31The commissioner may receive money
7.32covering other shares of the cost of partnership
7.33projects. These receipts are appropriated to
7.34the commissioner for these projects.
7.35
(d) Highway Debt Service
224,261,000
241,828,000
8.1$214,761,000 the first year and $232,328,000
8.2the second year are for transfer to the state
8.3bond fund. If this amount is insufficient to
8.4make all transfers required in the year for
8.5which it is made, the commissioner of
8.6management and budget shall transfer the
8.7deficiency amount under the statutory open
8.8appropriation, and notify the chairs and
8.9ranking minority members of the legislative
8.10committees with jurisdiction over
8.11transportation finance and the chairs of the
8.12senate Committee on Finance and the house
8.13of representatives Committee on Ways and
8.14Means of the amount of the deficiency. Any
8.15excess appropriation cancels to the trunk
8.16highway fund.
8.17The base appropriations for debt service are
8.18$251,367,000 in fiscal year 2020 and
8.19$248,616,000 in fiscal year 2021.
8.20
(e) Statewide Radio Communications
5,648,000
5,829,000
8.21
Appropriations by Fund
8.22
2018
2019
8.23
General
3,000
3,000
8.24
Trunk Highway
5,645,000
5,826,000
8.25$3,000 in each year is from the general fund
8.26to equip and operate the Roosevelt signal
8.27tower for Lake of the Woods weather
8.28broadcasting.
8.29
Subd. 4.Local Roads
8.30
(a) County State-Aid Roads
769,644,000
800,066,000
8.31This appropriation is from the county state-aid
8.32highway fund under Minnesota Statutes,
8.33section 161.081, and chapter 162, and is
8.34available until June 30, 2027.
9.1If the commissioner of transportation
9.2determines that a balance remains in the
9.3county state-aid highway fund following the
9.4appropriations and transfers made in this
9.5paragraph, and that the appropriations made
9.6are insufficient for advancing county state-aid
9.7highway projects, an amount necessary to
9.8advance the projects, not to exceed the balance
9.9in the county state-aid highway fund, is
9.10appropriated in each year to the commissioner.
9.11Within two weeks of a determination under
9.12this contingent appropriation, the
9.13commissioner of transportation shall notify
9.14the commissioner of management and budget
9.15and the chairs and ranking minority members
9.16of the legislative committees with jurisdiction
9.17over transportation finance concerning funds
9.18appropriated. The commissioner shall identify
9.19in the next budget submission to the legislature
9.20under Minnesota Statutes, section 16A.11, any
9.21amount that is appropriated under this
9.22paragraph.
9.23
(b) Municipal State-Aid Roads
195,858,000
203,463,000
9.24This appropriation is from the municipal
9.25state-aid street fund under Minnesota Statutes,
9.26chapter 162, and is available until June 30,
9.272027.
9.28If the commissioner of transportation
9.29determines that a balance remains in the
9.30municipal state-aid street fund following the
9.31appropriations and transfers made in this
9.32paragraph, and that the appropriations made
9.33are insufficient for advancing municipal
9.34state-aid street projects, an amount necessary
9.35to advance the projects, not to exceed the
10.1balance in the municipal state-aid street fund,
10.2is appropriated in each year to the
10.3commissioner. Within two weeks of a
10.4determination under this contingent
10.5appropriation, the commissioner of
10.6transportation shall notify the commissioner
10.7of management and budget and the chairs and
10.8ranking minority members of the legislative
10.9committees with jurisdiction over
10.10transportation finance concerning funds
10.11appropriated. The commissioner shall identify
10.12in the next budget submission to the legislature
10.13under Minnesota Statutes, section 16A.11, any
10.14amount that is appropriated under this
10.15paragraph.
10.16
(c) Small Cities Assistance
10,000,000
0
10.17This appropriation is from the small cities
10.18assistance account in the special revenue fund
10.19under Minnesota Statutes, section 162.145.
10.20This is a onetime appropriation and is
10.21available in the second year.
10.22
Subd. 5.Agency Management
10.23
(a) Agency Services
44,316,000
45,206,000
10.24
(b) Buildings
20,085,000
20,939,000
10.25
Appropriations by Fund
10.26
2018
2019
10.27
General
54,000
54,000
10.28
Trunk Highway
20,031,000
20,885,000
10.29Any money appropriated to the commissioner
10.30of transportation for building construction for
10.31any fiscal year before the first year is available
10.32to the commissioner of transportation during
10.33the biennium to the extent that the
10.34commissioner spends the money on the
10.35building construction projects for which the
11.1money was originally encumbered during the
11.2fiscal year for which it was appropriated.
11.3If the appropriation for either year is
11.4insufficient, the appropriation for the other
11.5year is available for it.
11.6
(c) Tort Claims
600,000
600,000
11.7If the appropriation for either year is
11.8insufficient, the appropriation for the other
11.9year is available for it.
11.10
Subd. 6.Transfers
11.11With the approval of the commissioner of
11.12management and budget, the commissioner
11.13of transportation may transfer unencumbered
11.14balances among the appropriations from the
11.15trunk highway fund and the state airports fund
11.16made in this section. No transfer may be made
11.17from the appropriations for state road
11.18construction or for debt service. Transfers
11.19under this subdivision may not be made
11.20between funds. Transfers under this
11.21subdivision must be reported immediately to
11.22the chairs and ranking minority members of
11.23the legislative committees with jurisdiction
11.24over transportation finance.
11.25
11.26
Subd. 7.Previous State Road Construction
Appropriations
11.27Any money appropriated to the commissioner
11.28of transportation for state road construction
11.29for any fiscal year before the first year is
11.30available to the commissioner during the
11.31biennium to the extent that the commissioner
11.32spends the money on the state road
11.33construction project for which the money was
11.34originally encumbered during the fiscal year
11.35for which it was appropriated.
12.1
Subd. 8.Contingent Appropriation
12.2The commissioner of transportation, with the
12.3approval of the governor and the written
12.4approval of at least five members of a group
12.5consisting of the members of the Legislative
12.6Advisory Commission under Minnesota
12.7Statutes, section 3.30, and the ranking minority
12.8members of the legislative committees with
12.9jurisdiction over transportation finance, may
12.10transfer all or part of the unappropriated
12.11balance in the trunk highway fund to an
12.12appropriation: (1) for trunk highway design,
12.13construction, or inspection in order to take
12.14advantage of an unanticipated receipt of
12.15income to the trunk highway fund or to take
12.16advantage of federal advanced construction
12.17funding; (2) for trunk highway maintenance
12.18in order to meet an emergency; or (3) to pay
12.19tort or environmental claims. Nothing in this
12.20subdivision authorizes the commissioner to
12.21increase the use of federal advanced
12.22construction funding beyond amounts
12.23specifically authorized. Any transfer as a result
12.24of the use of federal advanced construction
12.25funding must include an analysis of the effects
12.26on the long-term trunk highway fund balance.
12.27The amount transferred is subject to the
12.28purpose of the account to which it is
12.29transferred.

12.30
Sec. 3. METROPOLITAN COUNCIL
$
90,820,000
$
89,820,000
12.31This appropriation is from the general fund
12.32for transit system operations under Minnesota
12.33Statutes, sections 473.371 to 473.449.
13.1$1,000,000 in fiscal year 2018 is for financial
13.2assistance to replacement service providers
13.3under Minnesota Statutes, section 473.388,
13.4for the purposes of the suburb-to-suburb transit
13.5demonstration project authorized under Laws
13.62015, chapter 75, article 1, section 4. The
13.7council must not retain any portion of the
13.8funds under this appropriation.

13.9
Sec. 4. DEPARTMENT OF PUBLIC SAFETY
13.10
Subdivision 1.Total Appropriation
$
180,733,000
$
180,733,000
13.11
Appropriations by Fund
13.12
2018
2019
13.13
General
13,418,000
13,418,000
13.14
Special Revenue
54,130,000
54,130,000
13.15
H.U.T.D.
10,449,000
10,449,000
13.16
Trunk Highway
102,736,000
102,736,000
13.17The amounts that may be spent for each
13.18purpose are specified in the following
13.19subdivisions.
13.20
Subd. 2.Administration and Related Services
13.21
(a) Office of Communications
530,000
530,000
13.22
Appropriations by Fund
13.23
2018
2019
13.24
General
115,000
115,000
13.25
Trunk Highway
415,000
415,000
13.26
(b) Public Safety Support
8,934,000
8,934,000
13.27
Appropriations by Fund
13.28
2018
2019
13.29
General
3,797,000
3,797,000
13.30
H.U.T.D.
1,366,000
1,366,000
13.31
Trunk Highway
3,771,000
3,771,000
13.32$640,000 each year is from the general fund
13.33for payment of public safety officer survivor
13.34benefits under Minnesota Statutes, section
14.1299A.44 . If the appropriation for either year
14.2is insufficient, the appropriation for the other
14.3year is available for it.
14.4$1,367,000 each year is from the general fund
14.5to be deposited in the public safety officer's
14.6benefit account. This money is available for
14.7reimbursements under Minnesota Statutes,
14.8section 299A.465.
14.9$600,000 each year is from the general fund
14.10and $100,000 in each year is from the trunk
14.11highway fund for soft body armor
14.12reimbursements under Minnesota Statutes,
14.13section 299A.38.
14.14
(c) Technology and Support Service
3,685,000
3,685,000
14.15
Appropriations by Fund
14.16
2018
2019
14.17
General
1,322,000
1,322,000
14.18
H.U.T.D.
19,000
19,000
14.19
Trunk Highway
2,344,000
2,344,000
14.20
Subd. 3.State Patrol
14.21
(a) Patrolling Highways
88,357,000
88,357,000
14.22
Appropriations by Fund
14.23
2018
2019
14.24
General
37,000
37,000
14.25
H.U.T.D.
828,000
828,000
14.26
Trunk Highway
87,492,000
87,492,000
14.27
(b) Commercial Vehicle Enforcement
8,257,000
8,257,000
14.28
(c) Capitol Security
8,147,000
8,147,000
14.29This appropriation is from the general fund.
14.30The commissioner must not: (1) spend any
14.31money from the trunk highway fund for
14.32capitol security; or (2) permanently transfer
14.33any state trooper from the patrolling highways
14.34activity to capitol security.
15.1The commissioner must not transfer any
15.2money appropriated to the commissioner under
15.3this section: (1) to capitol security; or (2) from
15.4capitol security.
15.5
Subd. 4.Driver and Vehicle Services
15.6
(a) Vehicle Services
30,082,000
30,082,000
15.7
Appropriations by Fund
15.8
2018
2019
15.9
Special Revenue
21,846,000
21,846,000
15.10
H.U.T.D.
8,236,000
8,236,000
15.11
(b) Driver Services
30,896,000
30,896,000
15.12This appropriation is from the driver services
15.13operating account in the special revenue fund.
15.14$156,000 in each year is appropriated to
15.15maintain the automated knowledge test
15.16system.
15.17
Subd. 5.Traffic Safety
457,000
457,000
15.18
Subd. 6.Pipeline Safety
1,388,000
1,388,000
15.19This appropriation is from the pipeline safety
15.20account in the special revenue fund.

15.21    Sec. 5. APPROPRIATION CANCELLATION.
15.22$1,100,000 of the appropriation for port development assistance under Laws 2015,
15.23chapter 75, article 1, section 3, subdivision 2, paragraph (e), is canceled to the general fund
15.24on June 30, 2017.

15.25    Sec. 6. DEPARTMENT OF TRANSPORTATION; APPROPRIATION.
15.26$105,000,000 is appropriated from the trunk highway fund to the commissioner of
15.27transportation in fiscal year 2017, as additional federal spending authority for state road
15.28construction.
15.29EFFECTIVE DATE.This section is effective the day following final enactment.

16.1ARTICLE 2
16.2TRUNK HIGHWAY BONDING

16.3    Section 1. BOND SALE AUTHORIZATION.
16.4To provide the money appropriated in this article from the bond proceeds account in the
16.5trunk highway fund, the commissioner of management and budget shall sell and issue bonds
16.6of the state in an amount up to $325,325,000 in the manner, upon the terms, and with the
16.7effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
16.8Constitution, article XIV, section 11, at the times and in the amounts requested by the
16.9commissioner of transportation. The proceeds of the bonds, except accrued interest and any
16.10premium received from the sale of the bonds, must be deposited in the bond proceeds account
16.11in the trunk highway fund.

16.12
Sec. 2. BOND APPROPRIATIONS.
16.13The sums shown in the column under "Appropriations" are appropriated from the bond
16.14proceeds account in the trunk highway fund to the state agencies or officials indicated, to
16.15be spent for public purposes. Appropriations of bond proceeds must be spent as authorized
16.16by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified, money
16.17appropriated in this article for a capital program or project may be used to pay state agency
16.18staff costs that are attributed directly to the capital program or project in accordance with
16.19accounting policies adopted by the commissioner of management and budget.
16.20
SUMMARY
16.21
Department of Transportation
$
325,000,000
16.22
Department of Management and Budget
325,000
16.23
TOTAL
$
325,325,000
16.24
APPROPRIATIONS

16.25
16.26
16.27
Sec. 3. DEPARTMENT OF
TRANSPORTATION CORRIDORS OF
COMMERCE
$
200,000,000
16.28(a) The appropriation in this section is to the
16.29commissioner of transportation for the
16.30corridors of commerce program under
16.31Minnesota Statutes, section 161.088, and is
16.32available in the amounts of $50,000,000 in
16.33each fiscal year from 2018 to 2021. The
17.1commissioner may use up to 17 percent of the
17.2amount each year for program delivery.
17.3(b) In any fiscal year covered by this
17.4appropriation, the commissioner may identify
17.5projects based on previous selection processes
17.6or may perform a new selection.
17.7(c) The appropriation in this section cancels
17.8as specified under Minnesota Statutes, section
17.916A.642, except that the commissioner of
17.10management and budget shall count the start
17.11of authorization for issuance of state bonds as
17.12the first day of the fiscal year during which
17.13the bonds are available to be issued as
17.14specified under paragraph (a), and not as the
17.15date of enactment of this section.

17.16
Sec. 4. U.S. HIGHWAY 12 PROJECTS
$
15,000,000
17.17The appropriation in this section is in fiscal
17.18year 2018 for projects, including preliminary
17.19and final design, engineering, environmental
17.20analysis, right-of-way acquisition,
17.21construction, and reconstruction, on marked
17.22U.S. Highway 12 as follows:
17.23(1) realignment at the intersections with
17.24Hennepin County State-Aid Highway 92;
17.25(2) realignment and safety improvements at
17.26the intersection with Hennepin County
17.27State-Aid Highway 90; and
17.28(3) safety median improvements from the
17.29interchange with Wayzata Boulevard in
17.30Wayzata to approximately one-half mile east
17.31of the interchange with Hennepin County
17.32State-Aid Highway 6.

18.1
Sec. 5. MARKED TRUNK HIGHWAY 212
$
20,000,000
18.2The appropriation in this section is in fiscal
18.3year 2018 for acquisition of right-of-way and
18.4construction or reconstruction of marked
18.5Trunk Highway 212 as a four-lane divided
18.6highway from County Road 11 in Carver
18.7County to County Road 43 in Carver County.

18.8
Sec. 6. MARKED TRUNK HIGHWAY 14
$
90,000,000
18.9The appropriation in this section is in fiscal
18.10year 2018 for acquisition of right-of-way and
18.11construction and reconstruction of marked
18.12Trunk Highway 14 as a four-lane divided
18.13highway from the interchange with marked
18.14Interstate Highway 35 near the city of
18.15Owatonna to the point near the city of Dodge
18.16Center at which marked Trunk Highway 14
18.17constitutes a four-lane divided highway
18.18southeast of the intersection with marked
18.19Trunk Highway 56.

18.20
Sec. 7. BOND SALE EXPENSES
$
325,000
18.21This appropriation is to the commissioner of
18.22management and budget for bond sale
18.23expenses under Minnesota Statutes, sections
18.2416A.641, subdivision 8, and 167.50,
18.25subdivision 4, and is available in the amounts
18.26of $175,000 in fiscal year 2018 and $50,000
18.27in each fiscal year from 2019 to 2021.

18.28    Sec. 8. EFFECTIVE DATE.
18.29This article is effective July 1, 2017.

19.1ARTICLE 3
19.2TRANSPORTATION FINANCE

19.3    Section 1. Minnesota Statutes 2016, section 161.081, subdivision 1, is amended to read:
19.4    Subdivision 1. Distribution of five percent. (a) Pursuant to article 14, section 5, of the
19.5Constitution, five percent of the net highway user tax distribution fund is set aside, and
19.6apportioned to the county state-aid highway fund.
19.7(b) That apportionment is further distributed as follows:
19.8(1) 30.5 percent to the town road account created in section 162.081;
19.9(2) 16 percent to the town bridge account, which is created in the state treasury 46.5
19.10percent to the county state-aid highway fund, consisting of: (i) 30.5 percent to the town road
19.11account created in section 162.081; and (ii) 16 percent to the town bridge account created
19.12in the state treasury; and
19.13(3) 53.5 percent to the flexible highway account created in subdivision 3 (2) 53.5 percent
19.14to the trunk highway fund.
19.15EFFECTIVE DATE.This section is effective July 1, 2017.

19.16    Sec. 2. Minnesota Statutes 2016, section 297A.815, subdivision 3, is amended to read:
19.17    Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision,
19.18"net revenue" means an amount equal to the revenues, including interest and penalties,
19.19collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
19.20    (b) On or before June 30 of each fiscal year, the commissioner of revenue shall estimate
19.21the amount of the net revenue revenues, including interest and penalties, collected under
19.22this section for the current fiscal year.
19.23    (c) On or after July 1 (b) By July 15 of the subsequent fiscal year, the commissioner of
19.24management and budget shall must transfer the net revenue revenues as estimated in
19.25paragraph (b) (a) from the general fund, as follows:
19.26    (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter
19.27    36 percent to the county state-aid highway fund. Notwithstanding any other law to the
19.28contrary, the commissioner of transportation shall allocate the funds transferred under this
19.29clause to the counties in the metropolitan area, as defined in section 473.121, subdivision
19.304, excluding the counties of Hennepin and Ramsey, so that each county shall receive of
19.31such amount the percentage that its population, as defined in section 477A.011, subdivision
20.13, estimated or established by July 15 of the year prior to the current calendar year, bears
20.2to the total population of the counties receiving funds under this clause; and
20.3    (2) the remainder 36 percent to the greater Minnesota transit account; and
20.4    (3) the remainder to the highway user tax distribution fund.
20.5    (c) As part of the transfer that must occur by July 15, 2018, in addition to any amounts
20.6transferred under paragraph (b), the commissioner of management and budget must transfer
20.7$10,000,000 of the revenues as estimated in paragraph (a) from the general fund to the small
20.8cities assistance account under section 162.145.
20.9EFFECTIVE DATE.This section is effective beginning with the estimate that must
20.10be completed on or before June 30, 2018, for a transfer that occurs by July 15, 2018.

20.11    Sec. 3. Minnesota Statutes 2016, section 297A.94, is amended to read:
20.12297A.94 DEPOSIT OF REVENUES.
20.13(a) Except as provided in this section, the commissioner shall deposit the revenues,
20.14including interest and penalties, derived from the taxes imposed by this chapter in the state
20.15treasury and credit them to the general fund.
20.16(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
20.17account in the special revenue fund if:
20.18(1) the taxes are derived from sales and use of property and services purchased for the
20.19construction and operation of an agricultural resource project; and
20.20(2) the purchase was made on or after the date on which a conditional commitment was
20.21made for a loan guaranty for the project under section 41A.04, subdivision 3.
20.22The commissioner of management and budget shall certify to the commissioner the date on
20.23which the project received the conditional commitment. The amount deposited in the loan
20.24guaranty account must be reduced by any refunds and by the costs incurred by the Department
20.25of Revenue to administer and enforce the assessment and collection of the taxes.
20.26(c) The commissioner shall deposit the revenues, including interest and penalties, derived
20.27from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
20.28paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
20.29(1) first to the general obligation special tax bond debt service account in each fiscal
20.30year the amount required by section 16A.661, subdivision 3, paragraph (b); and
20.31(2) after the requirements of clause (1) have been met, the balance to the general fund.
21.1(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
21.2in the state treasury the revenues collected under section 297A.64, subdivision 1, and credit
21.3them to the highway user tax distribution fund.
21.4(e) The commissioner shall deposit the revenues, including interest and penalties,
21.5collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
21.6general fund. By July 15 of each year the commissioner shall transfer to the highway user
21.7tax distribution fund an amount equal to the excess fees collected under section 297A.64,
21.8subdivision 5
, for the previous calendar year.
21.9(e) (f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the
21.10deposit of revenues under paragraph (d), the commissioner shall deposit into the state
21.11treasury and credit to the highway user tax distribution fund an amount equal to the estimated
21.12revenues derived from the tax rate imposed under section 297A.62, subdivision 1, on the
21.13lease or rental for not more than 28 days of rental motor vehicles subject to section 297A.64.
21.14The commissioner shall estimate the amount of sales tax revenue deposited under this
21.15paragraph based on the amount of revenue deposited under paragraph (d).
21.16(g) Starting after July 1, 2017, the commissioner shall deposit an amount of the
21.17remittances monthly into the state treasury and credit them to the highway user tax
21.18distribution fund as a portion of the estimated amount of taxes collected from the sale and
21.19purchase of motor vehicle repair parts in that month. For the remittances between July 1,
21.202017, and June 30, 2019, the monthly deposit amount is $10,282,000. For remittances in
21.21each subsequent fiscal year, the monthly deposit amount is $13,957,000. For purposes of
21.22this paragraph, "motor vehicle" has the meaning given in section 297B.01, subdivision 11,
21.23and "motor vehicle repair and replacement parts" includes (i) all parts, tires, accessories,
21.24and equipment incorporated into or affixed to the motor vehicle as part of the motor vehicle
21.25maintenance and repair, and (ii) paint, oil, and other fluids that remain on or in the motor
21.26vehicle as part of the motor vehicle maintenance or repair.
21.27(h) 72.43 percent of the revenues, including interest and penalties, transmitted to the
21.28commissioner under section 297A.65, must be deposited by the commissioner in the state
21.29treasury as follows:
21.30(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
21.31the game and fish fund, and may be spent only on activities that improve, enhance, or protect
21.32fish and wildlife resources, including conservation, restoration, and enhancement of land,
21.33water, and other natural resources of the state;
22.1(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
22.2be spent only for state parks and trails;
22.3(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
22.4be spent only on metropolitan park and trail grants;
22.5(4) three percent of the receipts must be deposited in the natural resources fund, and
22.6may be spent only on local trail grants; and
22.7(5) two percent of the receipts must be deposited in the natural resources fund, and may
22.8be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
22.9and the Duluth Zoo.
22.10(f) (i) The revenue dedicated under paragraph (e) (h) may not be used as a substitute
22.11for traditional sources of funding for the purposes specified, but the dedicated revenue shall
22.12supplement traditional sources of funding for those purposes. Land acquired with money
22.13deposited in the game and fish fund under paragraph (e) (h) must be open to public hunting
22.14and fishing during the open season, except that in aquatic management areas or on lands
22.15where angling easements have been acquired, fishing may be prohibited during certain times
22.16of the year and hunting may be prohibited. At least 87 percent of the money deposited in
22.17the game and fish fund for improvement, enhancement, or protection of fish and wildlife
22.18resources under paragraph (e) (h) must be allocated for field operations.
22.19(g) (j) The revenues deposited under paragraphs (a) to (f) (i) do not include the revenues,
22.20including interest and penalties, generated by the sales tax imposed under section 297A.62,
22.21subdivision 1a
, which must be deposited as provided under the Minnesota Constitution,
22.22article XI, section 15.
22.23EFFECTIVE DATE.This section is effective July 1, 2017.

22.24    Sec. 4. Minnesota Statutes 2016, section 297A.992, subdivision 2, is amended to read:
22.25    Subd. 2. Authorization; rates. (a) Notwithstanding section 297A.99, subdivisions 1,
22.262, and 3, or 477A.016, or any other law, the board of a county participating in a joint powers
22.27agreement as specified in this section shall impose by resolution (1) a transportation sales
22.28and use tax at a rate of one-quarter of one percent on retail sales and uses taxable under this
22.29chapter, and (2) an excise tax of $20 per motor vehicle, as defined in section 297B.01,
22.30subdivision 11
, purchased or acquired from any person engaged in the business of selling
22.31motor vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes
22.32authorized are to fund transportation improvements as specified in this section, including
22.33debt service on obligations issued to finance such improvements pursuant to subdivision 7.
23.1    (b) The tax imposed under this section is not included in determining if the total tax on
23.2lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
23.3chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
23.412, section 87, or in determining a tax that may be imposed under any other limitations.
23.5(c) A county participating in a joint powers agreement as specified in this section may
23.6impose an additional transportation sales and use tax at a rate of one-fifth of one percent
23.7on retail sales and uses taxable under this chapter. Before imposing a tax authorized by this
23.8paragraph, the imposition of the tax must be approved by a majority of voters at a general
23.9election. The proceeds of the taxes imposed under this paragraph must be used for the
23.10purposes specified in section 297A.993, subdivision 2.

23.11ARTICLE 4
23.12TRANSPORTATION POLICY

23.13    Section 1. Minnesota Statutes 2016, section 85.016, is amended to read:
23.1485.016 BICYCLE TRAIL PROGRAM.
23.15The commissioner of natural resources shall must establish a program for the development
23.16of bicycle trails utilizing the state trails authorized by section 85.015, other state parks and
23.17recreation land, and state forests. "Bicycle trail," as used in this section, has the meaning
23.18given in section 169.011. The program shall must be coordinated with the local park trail
23.19grant program established by the commissioner pursuant to section 85.019, with the bikeway
23.20program state bicycle routes established by the commissioner of transportation pursuant to
23.21section 160.265 160.266, and with existing and proposed local bikeways. In the metropolitan
23.22area as defined in section 473.121, the program shall must be developed in accordance with
23.23plans and priorities established by the Metropolitan Council. The commissioner shall must
23.24provide technical assistance to local units of government in planning and developing bicycle
23.25trails in local parks. The bicycle trail program shall must, as a minimum, describe the
23.26location, design, construction, maintenance, and land acquisition needs of each component
23.27trail and shall give due consideration to the model standards for the establishment of
23.28recreational vehicle lanes promulgated by the commissioner of transportation pursuant to
23.29section 160.262. The program shall must be developed after consultation with the state trail
23.30council and regional and local units of government and bicyclist organizations.

24.1    Sec. 2. Minnesota Statutes 2016, section 116.03, is amended by adding a subdivision to
24.2read:
24.3    Subd. 7. Clean Air Act settlement money. "Clean Air Act settlement money" means
24.4money required to be paid to the state as a result of litigation or settlements of alleged
24.5violations of the federal Clean Air Act, United States Code, title 42, section 7401, et seq.,
24.6or rules adopted thereunder, by an automobile manufacturer. The commissioner of
24.7management and budget must establish the Clean Air Act settlement account in the
24.8environmental fund. Notwithstanding sections 16A.013 to 16A.016, the commissioner of
24.9management and budget must deposit Clean Air Act settlement money into the Clean Air
24.10Act settlement account. Clean Air Act settlement money must not be spent until it is
24.11specifically appropriated by law. The commissioner of management and budget must
24.12eliminate the Clean Air Act settlement account in the environmental fund after all Clean
24.13Air Act settlement money has been expended.

24.14    Sec. 3. Minnesota Statutes 2016, section 160.02, is amended by adding a subdivision to
24.15read:
24.16    Subd. 1a. Bikeway. "Bikeway" means a bicycle lane, bicycle path, shared use path,
24.17bicycle route, or similar bicycle facility, regardless of whether designed for the exclusive
24.18use of bicycles or for shared use with other transportation modes.

24.19    Sec. 4. Minnesota Statutes 2016, section 160.02, subdivision 27, is amended to read:
24.20    Subd. 27. Roadway; bicycle lane; bicycle route; bicycle path; bikeway. The terms
24.21"roadway," "bicycle lane," "bicycle route," and "bicycle path," and "bikeway" have the
24.22meanings given in section 169.011.

24.23    Sec. 5. Minnesota Statutes 2016, section 160.02, is amended by adding a subdivision to
24.24read:
24.25    Subd. 27a. Shared use path. "Shared use path" means a bicycle facility that is (1)
24.26physically separated from motorized vehicular traffic by an open space or barrier, (2) located
24.27within either the highway right-of-way or an independent right-of-way, and (3) available
24.28for use by other nonmotorized users.

24.29    Sec. 6. Minnesota Statutes 2016, section 160.262, subdivision 1, is amended to read:
24.30    Subdivision 1. Model standards Powers. (a) The legislature determines that it is in the
24.31interests of the public health, safety and welfare, to provide for the addition of bicycle and
25.1recreational vehicle lanes bikeways to proposed and existing public highways. The
25.2commissioner of transportation shall adopt, in the manner provided in chapter 14, model
25.3standards for the establishment of recreational vehicle lanes on and along proposed and
25.4existing public highways. The model standards shall include but not be limited to the
25.5following: (a) criteria for desirability of a lane in any given location, (b) provision for
25.6maintenance of the lanes, and (c) the placement of the lanes in relation to roads. The model
25.7standards shall govern state trunk highways. The commissioner of transportation is authorized
25.8to plan, design, establish, and maintain bikeways on the right-of-way of any trunk highway.
25.9The commissioner is responsible for the design and construction of all bikeway projects
25.10within the right-of-way of any trunk highway. The commissioner must consider the
25.11development of bikeways during the planning, design, construction, reconstruction, or
25.12improvement of any trunk highway, or allow the establishment of such bikeways within
25.13trunk highway right-of-way.
25.14(b) The commissioner must maintain bikeway design guidelines consistent with the state
25.15transportation goals in section 174.01.
25.16(c) The commissioner must compile and maintain a map of bikeways in the state and
25.17must publish and distribute the map's information at least once every two years in a form
25.18and manner suitable to assist persons wishing to use the bikeways.
25.19(d) The commissioner must maintain bikeways within the limits of trunk highway
25.20right-of-way unless a written agreement or limited use permit provides otherwise.

25.21    Sec. 7. Minnesota Statutes 2016, section 160.262, subdivision 3, is amended to read:
25.22    Subd. 3. Cooperation among agencies and governments. The following departments
25.23and agencies shall cooperate in providing on the nonmotorized transportation advisory
25.24committee identified in section 174.37 must provide information and advice for amendments
25.25to the model standards the bikeway design guidelines maintained by the commissioner of
25.26transportation: the Departments of Agriculture, Transportation, Natural Resources,
25.27Commerce, and Employment and Economic Development, and the Board of Water and Soil
25.28Resources. The commissioner may cooperate with and enter into agreements with the United
25.29States government, any department of the state of Minnesota, any unit of local government
25.30and, any tribal government, or any public or private corporation in order to effect the purposes
25.31of this section.

26.1    Sec. 8. Minnesota Statutes 2016, section 160.262, subdivision 4, is amended to read:
26.2    Subd. 4. Design-build bridges for nonmotorized vehicles. For streets and highways,
26.3the commissioner shall must allow for the acceptance of performance-specification bids,
26.4made by the lowest responsible bidder, for constructing design-build bridges for bicycle
26.5paths, bicycle trails, bikeways and pedestrian facilities that are:
26.6(1) designed and used primarily for nonmotorized transportation, but may allow for
26.7motorized wheelchairs, golf carts, necessary maintenance vehicles and, when otherwise
26.8permitted by law, rule, or ordinance, snowmobiles; and
26.9(2) located apart from any road or highway or protected by barriers, provided that a
26.10design-built bridge may cross over and above a road or highway.

26.11    Sec. 9. Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision to
26.12read:
26.13    Subd. 1a. State bicycle route; definition. For the purposes of this section, "state bicycle
26.14route" means a linear series of one or more roads or bikeways that is designated for bicycle
26.15travel, regardless of whether for exclusive use by bicycles or shared use with other modes
26.16of transportation.

26.17    Sec. 10. Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision
26.18to read:
26.19    Subd. 1b. State bicycle routes. The commissioner of transportation must identify state
26.20bicycle routes primarily on existing road right-of-way and trails. State bicycle routes must
26.21be identified in cooperation with road and trail authorities, including the commissioner of
26.22natural resources, and with the advice of the advisory committee on nonmotorized
26.23transportation under section 174.37. In a metropolitan area, state bicycle routes must be
26.24identified in coordination with the plans and priorities established by metropolitan planning
26.25organizations, as defined in United States Code, title 23, section 134.

26.26    Sec. 11. Minnesota Statutes 2016, section 160.266, subdivision 3, is amended to read:
26.27    Subd. 3. Connections with other bikeways. (a) The commissioner, in cooperation with
26.28road and trail authorities including the commissioner of natural resources, shall must:
26.29(1) identify existing bikeways of regional significance that are in reasonable proximity
26.30but not connected to the bikeway state bicycle routes established in under this section,
27.1including but not limited to the Lake Wobegon Trail in the counties of Stearns and Todd;
27.2and
27.3(2) support development of linkages between bikeways identified under clause (1) and
27.4the bikeway state bicycle routes established in under this section.
27.5(b) The requirements of this subdivision are a secondary priority for use of funds available
27.6under this section following establishment and enhancement of the bikeway state bicycle
27.7routes under subdivision 1 this section.

27.8    Sec. 12. Minnesota Statutes 2016, section 160.266, subdivision 4, is amended to read:
27.9    Subd. 4. Cooperation with other entities. The commissioner may contract and enter
27.10into agreements with federal agencies, other state agencies, local governments, and tribal
27.11governments, or private entities to establish, develop, maintain, and operate the bikeway
27.12state bicycle routes and to interpret associated natural and cultural resources.

27.13    Sec. 13. Minnesota Statutes 2016, section 160.266, subdivision 5, is amended to read:
27.14    Subd. 5. Funding. Bicycle Shared use paths included within the bikeway state bicycle
27.15routes and not administered by the commissioner of natural resources are eligible for funding
27.16from the environment and natural resources trust fund under chapter 116P, from the parks
27.17and trails grant program under section 85.535, from the local recreation grants program
27.18under section 85.019, subdivision 4b, and from other sources.

27.19    Sec. 14. Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision
27.20to read:
27.21    Subd. 6. Mississippi River Trail. The Mississippi River Trail bikeway must originate
27.22at Itasca State Park in Clearwater, Beltrami, and Hubbard Counties, then generally parallel
27.23the Mississippi River through the cities of Bemidji in Beltrami County, Grand Rapids in
27.24Itasca County, Brainerd in Crow Wing County, Little Falls in Morrison County, Sauk Rapids
27.25in Benton County, St. Cloud in Stearns County, Minneapolis in Hennepin County, St. Paul
27.26in Ramsey County, Hastings in Dakota County, Red Wing in Goodhue County, Wabasha
27.27in Wabasha County, Winona in Winona County, and La Crescent in Houston County to
27.28Minnesota's boundary with Iowa and there terminate. Where opportunities exist, the bikeway
27.29may be designated on both sides of the Mississippi River.

28.1    Sec. 15. Minnesota Statutes 2016, section 160.266, is amended by adding a subdivision
28.2to read:
28.3    Subd. 7. North Star Bicycle Route. The North Star Bicycle Route must originate in the
28.4city of St. Paul in Ramsey County, then proceed north through the cities of North Branch
28.5in Chisago County, Hinckley in Pine County, Carlton in Carlton County, Duluth in St. Louis
28.6County, Two Harbors in Lake County, and Grand Marais in Cook County to Minnesota's
28.7boundary with Canada and there terminate. Notwithstanding subdivision 5 or any law to
28.8the contrary, the commissioner must not spend trunk highway funds on creating, constructing,
28.9marking, or maintaining this route.

28.10    Sec. 16. Minnesota Statutes 2016, section 161.088, subdivision 4, is amended to read:
28.11    Subd. 4. Project eligibility. (a) The commissioner shall establish eligibility requirements
28.12for projects that can be funded under the program. Eligibility must include are:
28.13(1) consistency with the statewide multimodal transportation plan under section 174.03;
28.14(2) location of the project on an interregional corridor, for a project located outside of
28.15the Department of Transportation metropolitan district;
28.16(3) placement into at least one project classification under subdivision 3;
28.17(4) a maximum length of time, as determined by the commissioner, until commencement
28.18of construction work on the project; and
28.19(5) for each type of project classification under subdivision 3, a maximum allowable
28.20amount for the total project cost estimate, as determined by the commissioner with available
28.21data.
28.22(b) A project whose construction is programmed in the state transportation improvement
28.23program is not eligible for funding under the program. This paragraph does not apply to a
28.24project that is programmed as result of selection under this section.
28.25(c) A project may be, but is not required to be, identified in the 20-year state highway
28.26capital investment plan under section 174.03.

28.27    Sec. 17. Minnesota Statutes 2016, section 161.088, subdivision 5, is amended to read:
28.28    Subd. 5. Project selection process; criteria. (a) The commissioner shall must establish
28.29a process for identification, evaluation, and selection of to identify, evaluate, and select
28.30projects under the program. The process must be consistent with the requirements of this
28.31subdivision and must not include any additional evaluation criteria.
29.1(b) As part of the project selection process, the commissioner shall must annually accept
29.2recommendations on candidate projects from area transportation partnerships and other
29.3interested stakeholders in each Department of Transportation district. The commissioner
29.4must determine the eligibility for each candidate project identified under this paragraph,
29.5the commissioner shall determine eligibility, classify, and if appropriate, evaluate the project
29.6for the program. For each eligible project, the commissioner must classify and evaluate the
29.7project for the program.
29.8(c) Project evaluation and prioritization must be performed on the basis of objective
29.9criteria, which must include Projects must be evaluated using the following criteria:
29.10(1) a return on investment measure that provides for comparison across eligible projects;
29.11(2) measurable impacts on commerce and economic competitiveness;
29.12(3) efficiency in the movement of freight, including but not limited to:
29.13(i) measures of annual average daily traffic and commercial vehicle miles traveled, which
29.14may include data near the project location on that trunk highway or on connecting trunk
29.15and local highways; and
29.16(ii) measures of congestion or travel time reliability, which may be within or near the
29.17project limits, or both;
29.18(4) improvements to traffic safety;
29.19(5) connections to regional trade centers, local highway systems, and other transportation
29.20modes;
29.21(6) the extent to which the project addresses multiple transportation system policy
29.22objectives and principles; and
29.23(7) support and consensus for the project among members of the surrounding community;
29.24and
29.25(8) regional balance throughout the state.
29.26(d) The commissioner must adopt a policy that assigns a weight to each criteria under
29.27paragraph (c). This policy must be applied consistently to each project evaluated. Each
29.28project must be assigned a score based on the evaluation. The projects must be prioritized
29.29based on the score. The list of all projects evaluated must be made public and must include
29.30the score of each project.
30.1(e) As part of the project selection process, the commissioner may divide funding to be
30.2separately available among projects within each classification under subdivision 3, and may
30.3apply separate or modified criteria among those projects falling within each classification.

30.4    Sec. 18. Minnesota Statutes 2016, section 161.088, is amended by adding a subdivision
30.5to read:
30.6    Subd. 6a. Corridors of commerce long-term plan. The commissioner must create a
30.7corridors of commerce long-term plan that includes all projects deemed eligible for the
30.8program. The projects in the long-term plan must be prioritized based on the score assigned
30.9under subdivision 5. The commissioner may create a plan for each district or for the entire
30.10state.

30.11    Sec. 19. Minnesota Statutes 2016, section 161.088, subdivision 7, is amended to read:
30.12    Subd. 7. Legislative report; evaluation. (a) Starting in 2014, annually By November
30.131 each year, the commissioner shall must electronically submit a report on the corridors of
30.14commerce program to the chairs and ranking minority members of the legislative committees
30.15with jurisdiction over transportation policy and finance. At a minimum, the report must
30.16include:
30.17(1) a summary of the program, including a review of the project selection process,
30.18eligibility and criteria the policy that provides the weight given each criteria, funds expended
30.19in the previous selection cycle, and total funds expended since program inception;
30.20(2) a listing list of projects funded under the program in the previous selection cycle,
30.21including:
30.22(i) project classification;
30.23(ii) a breakdown of project costs and funding sources;
30.24(iii) any future operating costs assigned under subdivision 6; and
30.25(iv) a brief description that is comprehensible to a lay audience;
30.26(3) a listing list of all candidate project recommendations required under subdivision 5,
30.27paragraph (b), including the eligibility determination for each project and, for eligible
30.28projects, the project classification and disposition in the selection process; and
30.29(4) a list of all projects evaluated and the score for each project; and
30.30(5) any recommendations for changes to statutory requirements of the program.
31.1(b) Starting in 2016, and In every even-numbered year thereafter, the commissioner
31.2shall must incorporate into the report the results of an independent evaluation of impacts
31.3and effectiveness of the program. The evaluation must be performed by agency staff or a
31.4consultant. The individual or individuals performing the evaluation must have experience
31.5in program evaluation, but must not be regularly involved in the program's implementation.

31.6    Sec. 20. Minnesota Statutes 2016, section 161.115, subdivision 190, is amended to read:
31.7    Subd. 190. Route No. 259. Beginning at a point on Statutory Route No. 100, at or near
31.8Henderson; thence extending in a general southeasterly direction to a point on Statutory
31.9Route No. 123, at or near Le Sueur.
31.10EFFECTIVE DATE.This section is effective the day after the commissioner of
31.11transportation receives a copy of the agreement between the commissioner of transportation
31.12and the governing body of Le Sueur County to transfer jurisdiction of Legislative Route
31.13No. 123 and after the commissioner notifies the revisor of statutes under section 43, paragraph
31.14(b).

31.15    Sec. 21. Minnesota Statutes 2016, section 161.14, is amended by adding a subdivision to
31.16read:
31.17    Subd. 83. Senator Jim Metzen Memorial Highway. That segment of marked Trunk
31.18Highway 52 located within Dakota County is designated as "Senator Jim Metzen Memorial
31.19Highway." Notwithstanding section 161.139, the commissioner shall adopt a suitable design
31.20to mark this highway and erect appropriate signs.

31.21    Sec. 22. Minnesota Statutes 2016, section 161.21, subdivision 1, is amended to read:
31.22    Subdivision 1. Location and design of highways. The commissioner may make or
31.23cause to be made such studies and investigations as the commissioner deems necessary for
31.24the purpose of determining the most advantageous location and design of trunk highways
31.25from the standpoint of both present and future traffic needs, and in making such
31.26determinations the commissioner may take into consideration the probable future
31.27development of both urban and rural areas and the effect of such development on future
31.28traffic needs as indicated by such studies and investigations and the location and design
31.29with respect to recreational vehicle lane bikeway establishment.

32.1    Sec. 23. Minnesota Statutes 2016, section 161.321, subdivision 6, is amended to read:
32.2    Subd. 6. Rules; eligibility. (a) The rules adopted by the commissioner of administration
32.3to define small businesses and to set time and other eligibility requirements for participation
32.4in programs under sections 16C.16 to 16C.19 apply to this section. The commissioner may
32.5promulgate other rules necessary to carry out this section.
32.6(b) In addition to other eligibility requirements, a small targeted group business or
32.7veteran-owned small business is eligible for the bid preferences under this section only for
32.8eight years following the latest of:
32.9(1) May 1, 2012;
32.10(2) for a targeted group business, the date of initial certification by the commissioner of
32.11administration, as provided under section 16C.19;
32.12(3) for a veteran-owned small business, the date of initial certification by the United
32.13States Department of Veterans Affairs, as provided under section 16C.19, paragraph (d);
32.14or
32.15(4) for a veteran-owned small business, the release or discharge of any one of the owners
32.16from military active service, as defined in section 190.05, subdivision 5, lasting for a period
32.17of 179 days or longer.

32.18    Sec. 24. Minnesota Statutes 2016, section 161.44, subdivision 5, is amended to read:
32.19    Subd. 5. Conveyance to highest bidder in certain cases. If the larger tract has been
32.20platted into lots or divided into smaller tracts and the commissioner elects to proceed under
32.21this subdivision, or if the lands constituted an entire tract and the person from whom the
32.22lands were acquired and the person's spouse are deceased, or if the offers as provided for
32.23received are not accepted and the amount of money not tendered within the time prescribed,
32.24the lands may be sold and conveyed to the owner of the land abutting upon the lands in the
32.25same manner and under the same terms provided under subdivision 2, or the commissioner
32.26may sell the lands to the highest responsible bidder upon three weeks' published notice of
32.27such sale in a newspaper or other periodical of general circulation in the general area where
32.28the lands are located. All bids may be rejected and new bids received upon like advertisement.

32.29    Sec. 25. Minnesota Statutes 2016, section 161.44, subdivision 6a, is amended to read:
32.30    Subd. 6a. Services of licensed real estate broker. If the lands remain unsold after being
32.31offered for sale to the highest bidder are withdrawn from sale under subdivision 6b, the
32.32commissioner may retain the services of a licensed real estate broker to find a buyer. The
33.1sale price may be negotiated by the broker, but must not be less than 90 percent of the
33.2appraised market value as determined by the commissioner. The broker's fee must be
33.3established by prior agreement between the commissioner and the broker, and must not
33.4exceed ten percent of the sale price for sales of $10,000 or more. The broker's fee must be
33.5paid to the broker from the proceeds of the sale.

33.6    Sec. 26. Minnesota Statutes 2016, section 161.44, is amended by adding a subdivision to
33.7read:
33.8    Subd. 6b. Unsold lands. If lands remain unsold after being offered for sale to the highest
33.9bidder, the commissioner may offer the remaining lands to any person who agrees to pay
33.10the minimum bid established for the public sale. The sale must continue until all eligible
33.11lands have been sold or the commissioner withdraws the remaining lands from sale. The
33.12lands to be sold must be listed on the department's Unsold Property Inventory list.

33.13    Sec. 27. Minnesota Statutes 2016, section 169.14, is amended by adding a subdivision to
33.14read:
33.15    Subd. 5h. St. Louis County Road 128. Notwithstanding any provision to the contrary
33.16in this section, the speed limit on St. Louis County Road 128 in Eagles Nest Township
33.17between Trunk Highway 169 and County Road 989 is 40 miles per hour. Notwithstanding
33.18section 10.49, the segment of County Road 128 described in this subdivision shall be known
33.19as the "Senator Scott Newman Scenic Byway." The commissioner must erect appropriate
33.20signs displaying the 40 miles per hour speed limit and the designated name.
33.21EFFECTIVE DATE.This section is effective the day following final enactment and
33.22the speed limit shall be effective when the required signs are erected.

33.23    Sec. 28. Minnesota Statutes 2016, section 169.80, subdivision 1, is amended to read:
33.24    Subdivision 1. Limitations; misdemeanor. (a) It is a misdemeanor for a person to drive
33.25or move, or for the owner to cause or knowingly permit to be driven or moved, on a highway
33.26a vehicle or vehicles of a size or weight exceeding the limitations stated in sections 169.80
33.27to 169.88, or otherwise in violation of sections 169.80 to 169.88, other than section 169.81,
33.28subdivision 5a
, and the maximum size and weight of vehicles as prescribed in sections
33.29169.80 to 169.88 shall be lawful throughout this state, and local authorities shall have no
33.30power or authority to alter these limitations except as express authority may be granted in
33.31sections 169.80 to 169.88.
34.1(b) When all the axles of a vehicle or combination of vehicles are weighed separately
34.2the sum of the weights of the axles so weighed shall be evidence of the total gross weight
34.3of the vehicle or combination of vehicles so weighed.
34.4(c) When each of the axles of any group that contains two or more consecutive axles of
34.5a vehicle or combination of vehicles have been weighed separately the sum of the weights
34.6of the axles so weighed shall be evidence of the total gross weight on the group of axles so
34.7weighed.
34.8(d) When, in any group of three or more consecutive axles of a vehicle or combination
34.9of vehicles any axles have been weighed separately and two or more axles consecutive to
34.10each other in the group have been weighed together, the sum of the weights of the axles
34.11weighed separately and the axles weighed together shall be evidence of the total gross weight
34.12of the group of axles so weighed.
34.13(e) The provisions of sections 169.80 to 169.88 governing size, weight, and load shall
34.14do not apply to a fire apparatus, or to a vehicle operated under the terms of a special permit
34.15issued as provided by law.
34.16EFFECTIVE DATE.This section is effective the day following final enactment.

34.17    Sec. 29. Minnesota Statutes 2016, section 169.829, is amended by adding a subdivision
34.18to read:
34.19    Subd. 4. Certain emergency vehicles. The provisions of sections 169.80 to 169.88
34.20governing size, weight, and load do not apply to a fire apparatus, a police special response
34.21vehicle, or a licensed land emergency ambulance service vehicle.
34.22EFFECTIVE DATE.This section is effective the day following final enactment.

34.23    Sec. 30. Minnesota Statutes 2016, section 169.865, subdivision 3, is amended to read:
34.24    Subd. 3. Requirements; restrictions. (a) A vehicle or combination of vehicles operating
34.25under this section:
34.26    (1) is subject to axle weight limitations under section 169.824, subdivision 1;
34.27    (2) is subject to seasonal load restrictions under section 169.87;
34.28    (3) is subject to bridge load limits posted under section 169.84;
34.29    (4) may only be operated on paved streets and highways other than interstate highways;
35.1    (5) may not be operated with loads that exceed the manufacturer's gross vehicle weight
35.2rating as affixed to the vehicle, or other certification of gross vehicle weight rating complying
35.3with Code of Federal Regulations, title 49, sections 567.4 to 567.7;
35.4    (6) must be issued a permit from each road authority having jurisdiction over a road on
35.5which the vehicle is operated, if required;
35.6    (7) must comply with the requirements of section 169.851, subdivision 4; and
35.7    (8) must have brakes on all wheels.
35.8    (b) The percentage allowances for exceeding gross weights if transporting unfinished
35.9forest products under section 168.013, subdivision 3, paragraph (b), or for the first haul of
35.10unprocessed or raw farm products or unfinished forest products under section 168.013,
35.11subdivision 3
, paragraph (d), clause (3), do not apply to a vehicle or combination of vehicles
35.12operated under this section.
35.13(c) Notwithstanding paragraph (a), clause (4), a vehicle or combination of vehicles
35.14hauling fluid milk under a permit issued by the commissioner of transportation may also
35.15operate on interstate highways as provided under United States Code, title 23, section 127.

35.16    Sec. 31. Minnesota Statutes 2016, section 171.12, subdivision 6, is amended to read:
35.17    Subd. 6. Certain convictions not recorded. (a) Except as provided in paragraph (c)
35.18(d), the department shall must not keep on the record of a driver any conviction for a violation
35.19of a speed limit of 55 miles per hour unless the violation consisted of a speed greater than
35.20ten miles per hour in excess of the speed limit.
35.21(b) Except as provided in paragraph (c) (d), the department shall not keep on the record
35.22of a driver any conviction for a violation of a speed limit of 60 miles per hour unless the
35.23violation consisted of a speed greater than:
35.24(1) ten miles per hour in excess of the speed limit, for any violation occurring on or after
35.25August 1, 2012, and before August 1, 2014; or
35.26(2) five miles per hour in excess of the speed limit, for any violation occurring on or
35.27after August 1, 2014.
35.28(c) Except as provided in paragraph (d), the department shall not keep on the record of
35.29a driver any conviction for a violation of a speed limit of 45 miles per hour on marked
35.30Interstate Highway 35E in the city of St. Paul, from its intersection with West Seventh Street
35.31to its intersection with marked Interstate Highway 94, unless the violation consisted of a
35.32speed greater than ten miles per hour in excess of the speed limit.
36.1(d) This subdivision does not apply to (1) a violation that occurs in a commercial motor
36.2vehicle, or (2) a violation committed by a holder of a class A, B, or C commercial driver's
36.3license or commercial driver learner's permit, without regard to whether the violation was
36.4committed in a commercial motor vehicle or another vehicle.

36.5    Sec. 32. Minnesota Statutes 2016, section 174.03, subdivision 1a, is amended to read:
36.6    Subd. 1a. Revision of statewide multimodal transportation plan. (a) The commissioner
36.7shall must revise the statewide multimodal transportation plan by January 15, 2013 2022,
36.8and by January 15 of every four five years thereafter. Before final adoption of a revised
36.9plan, the commissioner shall must hold a hearing to receive public comment on the
36.10preliminary draft of the revised plan.
36.11(b) Each revised statewide multimodal transportation plan must:
36.12(1) incorporate the goals of the state transportation system in section 174.01;
36.13(2) establish objectives, policies, and strategies for achieving those goals; and
36.14(3) identify performance targets for measuring progress and achievement of transportation
36.15system goals, objectives, or policies.

36.16    Sec. 33. Minnesota Statutes 2016, section 174.03, subdivision 1c, is amended to read:
36.17    Subd. 1c. Statewide highway 20-year capital investment plan. By January 15, 2013,
36.18and In conjunction with Within one year of each future revision of the statewide multimodal
36.19transportation plan under subdivision 1a, the commissioner shall must prepare a 20-year
36.20statewide highway capital investment plan that:
36.21(1) incorporates performance measures and targets for assessing progress and achievement
36.22of the state's transportation goals, objectives, and policies identified in this chapter for the
36.23state trunk highway system, and those goals, objectives, and policies established in the
36.24statewide multimodal transportation plan. Performance targets must be based on objectively
36.25verifiable measures, and address, at a minimum, preservation and maintenance of the
36.26structural condition of state highway bridges and pavements, safety, and mobility;
36.27(2) summarizes trends and impacts for each performance target over the past five years;
36.28(3) summarizes the amount and analyzes the impact of the department's capital
36.29investments and priorities over the past five years on each performance target, including a
36.30comparison of prior plan projected costs with actual costs;
37.1(4) identifies the investments required to meet the established performance targets over
37.2the next 20-year period;
37.3(5) projects available state and federal funding over the 20-year period, including any
37.4unique, competitive, time-limited, or focused funding opportunities;
37.5(6) identifies strategies to ensure the most efficient use of existing transportation
37.6infrastructure, and to maximize the performance benefits of projected available funding;
37.7(7) establishes investment priorities for projected funding, including a schedule of major
37.8projects or improvement programs for the 20-year period together with projected costs and
37.9impact on performance targets; and
37.10(8) identifies those performance targets identified under clause (1) not expected to meet
37.11the target outcome over the 20-year period together with alternative strategies that could
37.12be implemented to meet the targets.

37.13    Sec. 34. [174.38] ACTIVE TRANSPORTATION PROGRAM.
37.14    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
37.15the meanings given them.
37.16(b) "Bond-eligible cost" means:
37.17(1) expenditures under this section for acquisition of land or permanent easements,
37.18predesign, design, preliminary and final engineering, environmental analysis, construction,
37.19and reconstruction of publicly owned infrastructure for nonmotorized transportation in
37.20Minnesota with a useful life of at least ten years;
37.21(2) preparation of land for which a nonmotorized transportation route is established,
37.22including demolition of structures and remediation of any hazardous conditions on the land;
37.23and
37.24(3) the unpaid principal on debt issued by a political subdivision for a nonmotorized
37.25transportation project.
37.26(c) "Commissioner" means the commissioner of transportation.
37.27    Subd. 2. Program established. The commissioner must establish a program to support
37.28bicycling, pedestrian activities, and other forms of nonmotorized transportation.
37.29    Subd. 3. Active transportation accounts. (a) An active transportation account is
37.30established in the bond proceeds fund. The account consists of state bond proceeds
37.31appropriated to the commissioner. Money in the account must be expended only on
38.1bond-eligible costs of a project receiving financial assistance under this section. All uses
38.2of funds from the account must be for publicly owned property.
38.3(b) An active transportation account is established in the special revenue fund. The
38.4account consists of funds provided by law and any other money donated, allotted, transferred,
38.5or otherwise provided to the account. Money in the account must be expended only on a
38.6project that receives financial assistance under this section.
38.7(c) In each federal fiscal year, the commissioner must transfer $16,000,000 of the National
38.8Highway Performance Program funds to the active transportation account.
38.9    Subd. 4. Program administration. (a) The commissioner must establish program
38.10requirements, including:
38.11(1) assistance eligibility, subject to the requirements under paragraph (b);
38.12(2) a solicitation and application process that minimizes the burden on applicants; and
38.13(3) procedures to award and pay financial assistance.
38.14(b) Eligible recipients of financial assistance under this section are:
38.15(1) a political subdivision; and
38.16(2) a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code, as
38.17amended.
38.18(c) The commissioner must make reasonable efforts to publicize each application
38.19solicitation among all eligible recipients. The commissioner must assist applicants to create
38.20and submit applications, with an emphasis on providing assistance in communities that are
38.21historically and currently underrepresented in local or regional planning, including
38.22communities of color, low-income households, people with disabilities, and people with
38.23limited English proficiency.
38.24(d) The commissioner may provide grants or other financial assistance for a project.
38.25(e) The commissioner is prohibited from expending more than one percent of available
38.26funds in a fiscal year under this section on program administration.
38.27    Subd. 5. State general obligation bond funds. Minnesota Constitution, article XI,
38.28section 5, clause (a), requires that state general obligation bonds be issued to finance only
38.29the acquisition or betterment of public land, buildings, and other public improvements of a
38.30capital nature. The legislature has determined that many nonmotorized transportation
38.31infrastructure projects constitute betterments and capital improvements within the meaning
38.32of the Minnesota Constitution and capital expenditures under generally accepted accounting
39.1principles, and will be financed more efficiently and economically under this section than
39.2by direct appropriations for specific projects.
39.3    Subd. 6. Use of funds. (a) For a project funded by state bond proceeds under this section,
39.4financial assistance is limited to bond-eligible costs.
39.5(b) Subject to paragraph (a), the commissioner must determine permissible uses of
39.6financial assistance under this section, which must include:
39.7(1) construction and maintenance of bicycle, trail, and pedestrian infrastructure, including
39.8but not limited to safe routes to school infrastructure and bicycle facilities and centers; and
39.9(2) noninfrastructure programming, including activities as specified in section 174.40,
39.10subdivision 7a, paragraph (b).
39.11    Subd. 7. Project evaluation and selection. (a) The commissioner must establish a
39.12project evaluation and selection process that is competitive, criteria-based, and objective.
39.13(b) The process must include criteria and prioritization of projects based on:
39.14(1) the project's inclusion in a municipal or regional nonmotorized transportation system
39.15plan;
39.16(2) the project's location in a jurisdiction with a complete streets policy, as provided
39.17under section 174.75, either in effect or under development with estimated enactment within
39.18six months of the grant award date;
39.19(3) the extent to which the project supports development of continuous and convenient
39.20safe routes to school;
39.21(4) the extent to which the project supports development of routes to and connections
39.22with educational facilities, centers of employment, governmental services, health care
39.23facilities, food sources, transit facilities, and other community destinations;
39.24(5) the project's general benefits to public health and safety;
39.25(6) geographic equity in project benefits, with an emphasis on communities that are
39.26historically and currently underrepresented in local or regional planning, including
39.27communities of color, low-income households, people with disabilities, and people with
39.28limited English proficiency; and
39.29(7) benefits in areas or locations experiencing high rates of pedestrian or bicycle
39.30collisions.
40.1    Subd. 8. Grant cancellation. If, five years after execution of a grant agreement, the
40.2commissioner determines that the grantee has not proceeded in a timely manner with
40.3implementation of the funded project, the commissioner must cancel the grant. The grantee
40.4must repay to the commissioner all grant money received under the program. Section
40.516A.642 applies to any appropriation made from the bond proceeds fund to the commissioner
40.6under this section that has not been awarded as financial assistance.
40.7EFFECTIVE DATE.This section is effective the day following final enactment.

40.8    Sec. 35. [174.95] PROJECT SELECTION REQUIREMENTS.
40.9(a) The commissioner, after consultation with the Federal Highway Administration,
40.10metropolitan planning organizations, regional development commissions, area transportation
40.11partnerships, local governments, the Metropolitan Council, and transportation stakeholders,
40.12must develop, adopt, and implement a project evaluation and selection policy to apply to
40.13the standard project selection process. The commissioner may update the policy only after
40.14consultation with the Federal Highway Administration, metropolitan planning organizations,
40.15regional development commissions, area transportation partnerships, local governments,
40.16the Metropolitan Council, and transportation stakeholders. The commissioner must publicize
40.17the policy and updates on the department's Web site and through other effective means
40.18selected by the commissioner.
40.19(b) The policy adopted under this section must include:
40.20(1) a ranking system that assigns scores to each project, the criteria that will be considered,
40.21and the weight of each criterion; the ranking system may consider project readiness as a
40.22criterion for evaluation, but project readiness must not be a major factor in determining the
40.23final score;
40.24(2) a process to inform the stakeholders and the general public of the score for each
40.25project considered, which projects were selected, and which projects were not selected; and
40.26(3) a process that requires the involvement of area transportation partnerships and other
40.27local authorities in the process of ranking and scoring projects.
40.28(c) The projects in the state transportation improvement program must include the score
40.29assigned to the project under this section. The projects must be prioritized based on the
40.30score assigned and executed in that priority order.
40.31(d) The policy required by this section must be adopted by October 1, 2018, and must
40.32be applied to project evaluation and selection that occurs on or after that date. The assigned
41.1scores must first appear in the first state transportation improvement program update that
41.2is completed on or after October 1, 2018.
41.3EFFECTIVE DATE.This section is effective the day following final enactment.

41.4    Sec. 36. Minnesota Statutes 2016, section 221.031, is amended by adding a subdivision
41.5to read:
41.6    Subd. 2e. Exemptions for pipeline welding trucks. A pipeline welding truck, as defined
41.7in Code of Federal Regulations, title 49, section 390.38, paragraph (b), including an individual
41.8operating a pipeline welding truck and the employer of the individual, is exempt from any
41.9requirement relating to:
41.10(1) registration as a motor carrier, including the requirement to obtain and display a
41.11United States Department of Transportation number under subdivision 6 and section 168.185;
41.12(2) driver qualifications under section 221.0314, subdivision 2;
41.13(3) driving of commercial motor vehicles under section 221.0314, subdivision 6;
41.14(4) parts, accessories, and inspection, repair, and maintenance of commercial motor
41.15vehicles under section 221.0314, subdivisions 7 and 10; and
41.16(5) hours of service of drivers, including maximum driving and on-duty time under
41.17section 221.0314, subdivision 9.

41.18    Sec. 37. ACTIVE TRANSPORTATION PROGRAM RECOMMENDATIONS.
41.19(a) By October 1, 2017, the Advisory Committee on Nonmotorized Transportation under
41.20Minnesota Statutes, section 174.37, must develop and submit recommendations to the
41.21commissioner of transportation regarding the project evaluation and selection processes
41.22under Minnesota Statutes, section 174.38, subdivision 7.
41.23(b) The advisory committee is encouraged to consult with representatives from the
41.24Bicycle Alliance of Minnesota; Minnesota Chamber of Commerce; Metropolitan Council
41.25Transportation Accessibility Advisory Committee; Minnesota Department of Transportation
41.26district area transportation partnerships; organizations representing elderly populations;
41.27public health organizations with experience in active transportation; the Minnesota State
41.28Council on Disability and other Minnesota state councils and commissions, including the
41.29Council on Asian-Pacific Minnesotans, the Minnesota Council on Latino Affairs, the Council
41.30for Minnesotans of African Heritage, the Minnesota Indian Affairs Council, the Office on
42.1the Economic Status of Women, and the Cultural and Ethnic Communities Leadership
42.2Council; and other stakeholders with expertise in equitable active transportation.
42.3(c) In its next annual report under Minnesota Statutes, section 174.37, subdivision 4, the
42.4advisory committee must include a summary of the recommendations under this section
42.5and submit a copy of the report to the chairs and ranking minority members of the legislative
42.6committees with jurisdiction over transportation policy and finance. The report is subject
42.7to Minnesota Statutes, section 3.195.
42.8EFFECTIVE DATE.This section is effective the day following final enactment.

42.9    Sec. 38. CONVEYANCE FOR HISTORICAL PURPOSES; MCKINSTRY SURPLUS
42.10LANDS.
42.11(a) Notwithstanding any other law to the contrary, the commissioner may convey as
42.12provided in Minnesota Statutes, section 161.44, land described in paragraph (b), including
42.13any improvements on the lands, owned in fee by the state for trunk highway purposes, but
42.14no longer needed, to the Minnesota Historical Society for historical purposes. The conveyance
42.15must be without financial consideration. The lands conveyed must become a part of the
42.16state's historic sites program under Minnesota Statutes, chapter 138.
42.17(b) The lands that may be conveyed are specifically related to the properties of the
42.18McKinstry Mounds and portions of the McKinstry Village site owned by the Department
42.19of Transportation, located along Trunk Highway 11 in Koochiching County.

42.20    Sec. 39. HIGHWAY CONSTRUCTION COSTS STUDY.
42.21    Subdivision 1. Construction costs study; report. (a) The commissioner of transportation
42.22must enter into an agreement to conduct a study with an organization or entity having
42.23relevant expertise.
42.24(b) At a minimum, the study must include:
42.25(1) an overview of highway construction cost issues;
42.26(2) comparison of costs in Minnesota relative to other states and regions;
42.27(3) identification of factors specific to Minnesota, if any, that contribute to cost
42.28differences;
42.29(4) evaluation of the methodology used for highway construction cost calculation and
42.30indexing in Minnesota, including review of associated best practices; and
43.1(5) specific recommendations for road authorities and legislative changes to reduce
43.2highway construction costs.
43.3(c) By February 15, 2018, the commissioner must submit a report on the study to the
43.4chairs and ranking minority members of the senate and house of representatives committees
43.5with jurisdiction over transportation policy and finance.
43.6    Subd. 2. Project cost comparison report. By February 15, 2018, the commissioner of
43.7transportation must report to the chairs and ranking minority members of the senate and
43.8house of representatives committees and divisions with jurisdiction over transportation
43.9policy and finance comparing the estimated cost of projects and the actual cost of projects.
43.10The report must include all projects completed in whole or in part by MnDOT from July 1,
43.112007, to July 1, 2017. For each project, the report must list the estimated cost of the project
43.12prior to starting the project and the total actual cost for the project after completion. For
43.13each project, if the actual cost was less than the estimated cost, the report must explain how
43.14the excess funds were expended.
43.15EFFECTIVE DATE.This section is effective the day following final enactment.

43.16    Sec. 40. INTERSTATE 94/494/694 INTERCHANGE SAFETY IMPROVEMENT
43.17AND CONGESTION RELIEF STUDY.
43.18The commissioner of transportation must conduct a safety improvement and congestion
43.19relief study for the interchange of signed Interstate Highways 94, 494, and 694 in the cities
43.20of Oakdale and Woodbury. At a minimum, the study must (1) provide specific
43.21recommendations to improve the safety of the interchange and reduce congestion at the
43.22interchange and on associated arterial roads, and (2) include cost estimates for each
43.23recommended improvement. The commissioner must report the findings and
43.24recommendations of the study to the chairs and ranking minority members of the senate
43.25and house of representatives committees having jurisdiction over transportation policy and
43.26finance within 180 days after the effective date of this section.
43.27EFFECTIVE DATE.This section is effective the day following final enactment.

43.28    Sec. 41. LEGISLATIVE ROUTE NO. 123 REMOVED.
43.29(a) Minnesota Statutes, section 161.115, subdivision 54, is repealed effective the day
43.30after the commissioner of transportation receives a copy of the agreement between the
43.31commissioner and the governing body of Le Sueur County to transfer jurisdiction of
44.1Legislative Route No. 123 and after the commissioner notifies the revisor of statutes under
44.2paragraph (b).
44.3(b) The revisor of statutes must delete the route identified in paragraph (a) from Minnesota
44.4Statutes when the commissioner of transportation sends notice to the revisor electronically
44.5or in writing that the conditions required to transfer the route have been satisfied.

44.6    Sec. 42. LEGISLATIVE ROUTE NO. 225 REMOVED.
44.7(a) Minnesota Statutes, section 161.115, subdivision 156, is repealed effective the day
44.8after the commissioner of transportation receives a copy of the agreement between the
44.9commissioner and the governing body of Becker County to transfer jurisdiction of Legislative
44.10Route No. 225 and after the commissioner notifies the revisor of statutes under paragraph
44.11(b).
44.12(b) The revisor of statutes must delete the route identified in paragraph (a) from Minnesota
44.13Statutes when the commissioner of transportation sends notice to the revisor electronically
44.14or in writing that the conditions required to transfer the route have been satisfied.

44.15    Sec. 43. MARKED TRUNK HIGHWAY 316 SPEED LIMIT IN HASTINGS;
44.16MORATORIUM AND REPORT.
44.17    Subdivision 1. Moratorium. The commissioner of transportation is prohibited from
44.18adjusting or requiring adjustment to the speed on marked Trunk Highway 316, known as
44.19Red Wing Boulevard, from the intersection with marked U.S. Highway 61 to Tuttle Drive,
44.20in the city of Hastings. The prohibition in this subdivision does not apply to (1) a local road
44.21authority that is authorized to adjust a speed limit without a traffic and engineering study
44.22as provided in Minnesota Statutes, section 169.14; or (2) establishment of a work zone speed
44.23limit under Minnesota Statutes, section 169.14, subdivision 5d.
44.24    Subd. 2. Legislative report. (a) By March 1, 2018, the commissioner of transportation
44.25must submit a report on speed limits in the segment of marked Trunk Highway 316 specified
44.26in subdivision 1, to the chairs and ranking minority members of the legislative committees
44.27with jurisdiction over transportation policy and finance. As part of developing the report,
44.28the commissioner must hold at least two hearings at a location within the city of Hastings
44.29regarding proposed speed limit adjustments. This report shall be made within existing funds.
44.30(b) At a minimum, the report must provide details on the decision making process for
44.31proposed speed limit adjustments, summarize and respond to comments from the hearings
45.1required under paragraph (a), and include copies of recent traffic and engineering studies
45.2on adjusting speed limits in Hastings.
45.3EFFECTIVE DATE.This section is effective retroactively from January 1, 2017.

45.4    Sec. 44. REPORT TO LEGISLATURE ON PROJECT SELECTION POLICY.
45.5By February 15, 2018, the commissioner of transportation must report to the chairs and
45.6ranking minority members of the senate and house of representatives committees having
45.7jurisdiction over transportation policy and finance concerning the policy adopted pursuant
45.8to Minnesota Statutes, section 174.95, and how the policy is anticipated to improve the
45.9consistency, objectivity, and transparency of the selection process. The report must include
45.10information on input from members of the public and the organizations identified in
45.11Minnesota Statutes, section 174.95, paragraph (a). The report must also include proposed
45.12legislation to codify the ranking system established in the policy.
45.13EFFECTIVE DATE.This section is effective the day following final enactment.

45.14    Sec. 45. REPORT BY COMMISSIONER OF TRANSPORTATION ON MNPASS
45.15LANES.
45.16On or before January 2, 2018, the commissioner of transportation must report to the
45.17chairs and ranking minority members of the senate and house of representatives committees
45.18and divisions with jurisdiction over transportation policy and finance concerning MnPASS
45.19lanes to reduce congestion and raise revenue. The report must be prepared with existing
45.20appropriations. At a minimum, the report must:
45.21(1) for each lane, state the capital costs, maintenance and repair costs, and operation
45.22costs;
45.23(2) for each lane, indicate the current condition and the projected life expectancy;
45.24(3) for each lane, list and explain the cost recovery ratio;
45.25(4) list the amounts of the deposit of revenues made each year since pursuant to Minnesota
45.26Statutes, section 160.93, subdivisions 2 and 2a, including a breakdown of deposits for each
45.27lane for each year the lane has been in existence;
45.28(5) list the cost to participate in the MnPASS program, broken down by each year a lane
45.29has been in existence;
45.30(6) for each lane, list the total number of users, including a breakdown of the total number
45.31of each type of user; and
46.1(7) provide an explanation of how MnPASS lane regulations are enforced.
46.2EFFECTIVE DATE.This section is effective the day following final enactment.

46.3    Sec. 46. REPORT BY COMMISSIONER OF TRANSPORTATION ON TOLLING.
46.4On or before January 2, 2018, the commissioner of transportation must report to the
46.5chairs and ranking minority members of the senate and house of representatives committees
46.6and divisions with jurisdiction over transportation policy and finance concerning expanding
46.7the use of tolling in Minnesota in order to reduce congestion and raise revenue. The report
46.8must be prepared with existing appropriations. At a minimum, the report must:
46.9(1) summarize current state and federal laws that affect the use of tolling in this state;
46.10(2) identify any federal pilot projects for which this state is eligible to participate;
46.11(3) discuss the feasibility and cost of expanding use of tolling, the possibility of private
46.12investment in toll roads, and projected costs and cost recovery in establishing, operating,
46.13and maintaining toll roads;
46.14(4) review tolling models and technology options;
46.15(5) summarize the experience of other states that have widely implemented tolling;
46.16(6) identify and evaluate the feasibility of toll implementation for specific corridors;
46.17(7) project the likely range of revenues that could be generated by wider implementation
46.18of tolling and identify the percentage of revenues that are projected to be paid by nonresidents
46.19of the state;
46.20(8) discuss options for use of tolling revenue and measures to ensure compliance with
46.21laws governing operation of toll roads and use of revenues;
46.22(9) recommend and discuss possible ways to reduce cost to Minnesotans, such as tax
46.23deductions or credits, or types of discounts; and
46.24(10) provide recommendations for needed statutory or rule changes that would facilitate
46.25wider implementation of tolling and achieve maximum revenues for the state and equity
46.26for its residents.
46.27EFFECTIVE DATE.This section is effective the day following final enactment.

47.1    Sec. 47. REPORT BY COMMISSIONER OF TRANSPORTATION ON
47.2TURNBACKS.
47.3(a) By February 15, 2018, the commissioner of transportation must report to the chairs
47.4and ranking minority members of the senate and house of representatives committees having
47.5jurisdiction over transportation policy and finance concerning turnbacks. At a minimum,
47.6the report must include:
47.7(1) a current list of proposed turnback projects, including a description of each segment
47.8of highway that is to be turned back; a description of the restoration work to be completed;
47.9estimated cost of restoration work; to which entity the highway will be turned back; and
47.10the total estimated cost related to all aspects of the turnback;
47.11(2) the amount that the commissioner of transportation anticipates will be needed for
47.12turnbacks during the next two fiscal years and a list of the turnbacks that will be accomplished
47.13with the anticipated funds;
47.14(3) a description of the turnback process, including an explanation of how turnback
47.15projects are selected; and
47.16(4) for each of the past five years:
47.17(i) the amount of money that accrued to the county turnback account and to the municipal
47.18turnback account;
47.19(ii) a description of each segment of highway that was restored and turned back, including
47.20what restoration work was completed; total cost of restoration work; to which entity the
47.21highway was turned back; and the total cost related to all aspects of the turnback; and
47.22(iii) the amount of surplus funds, if any, that were transferred to the county state-aid
47.23highway fund or to the municipal state-aid street fund pursuant to Minnesota Statutes, section
47.24161.084.
47.25(b) By February 15, 2019, and each year thereafter, the commissioner of transportation
47.26must report to the chairs and ranking minority members of the senate and house of
47.27representatives committees having jurisdiction over transportation policy and finance
47.28concerning turnbacks. At a minimum, the report must include:
47.29(1) a current list of proposed turnback projects, including a description of each segment
47.30of highway that is to be turned back; a description of the restoration work to be completed;
47.31estimated cost of restoration work; to which entity the highway will be turned back; and
47.32the total estimated cost related to all aspects of the turnback;
48.1(2) the amount that the commissioner of transportation anticipates will be needed for
48.2turnbacks during the next two fiscal years and a list of the turnbacks that will be accomplished
48.3with the anticipated funds; and
48.4(3) for the past calendar year, a description of each segment of highway that was restored
48.5and turned back, including what restoration work was completed; total cost of restoration
48.6work; to which entity the highway was turned back; and the total cost related to all aspects
48.7of the turnback.
48.8EFFECTIVE DATE.This section is effective the day following final enactment.

48.9    Sec. 48. SAFETY IMPROVEMENT PROJECT AT THE INTERSECTION OF
48.10HIGHWAY 55 AND WILKIN COUNTY ROAD 19.
48.11(a) By September 1, 2017, the commissioner of transportation must report to the chairs
48.12and ranking minority members of the senate and house of representatives committees and
48.13divisions with jurisdiction over transportation policy and finance concerning the issue of
48.14trucks stopping on Wilkin County Road 19 between Highway 55 and the railroad tracks
48.15north of Highway 55. The commissioner must identify project options that would allow
48.16trucks to safely stop at this intersection, including an option to add a turn lane on County
48.17Road 19. For each identified project, the commissioner must include an estimated cost and
48.18the estimated time to complete the project. In preparing the report, the commissioner must
48.19consult with the Minn-Dak Farmers Cooperative, the city of Nashua, the town of Champion,
48.20and Wilkin County.
48.21(b) Within 14 days after submitting the report required in paragraph (a), the commissioner
48.22must convene a working group consisting of the commissioner and one representative from
48.23each of the following: Minn-Dak Farmers Cooperative, Nashua city council, Champion
48.24town board, and Wilkin County board. The working group must consider the options
48.25identified in the report submitted pursuant to paragraph (a). If the working group reaches
48.26consensus on a proposed option, MnDOT must pursue that option.
48.27(c) If the working group does not reach a consensus by January 1, 2018, the commissioner
48.28must (1) design and construct a turn lane on the north side of the intersection of Wilkin
48.29County Road 19 with Highway 55, or (2) install a four-way traffic light at the intersection.
48.30The project must be designed so that a school bus or semitrailer is able to stop at the
48.31intersection without extending into cross-traffic or over the railroad tracks.
49.1(d) The commissioner must begin planning and construction of a project required in this
49.2section during the 2018 construction season. A project required under this section must be
49.3completed with the existing funds allocated for the district.
49.4EFFECTIVE DATE.This section is effective the day following final enactment.

49.5    Sec. 49. REPEALER.
49.6(a) Minnesota Statutes 2016, sections 160.262, subdivision 2; 160.265; 160.266,
49.7subdivisions 1 and 2; and 161.115, subdivision 32, are repealed.
49.8(b) Minnesota Rules, parts 8810.6000; 8810.6100; 8810.6300; 8810.6400; 8810.6500;
49.98810.6600; 8810.6700; 8810.6800; 8810.6900; 8810.7000; 8810.9910; 8810.9911;
49.108810.9912; and 8810.9913, are repealed.

49.11ARTICLE 5
49.12TRANSIT

49.13    Section 1. Minnesota Statutes 2016, section 117.189, is amended to read:
49.14117.189 PUBLIC SERVICE CORPORATION EXCEPTIONS.
49.15(a) Sections 117.031; 117.036; 117.055, subdivision 2, paragraph (b); 117.186; 117.187;
49.16117.188 ; and 117.52, subdivisions 1a and 4, do not apply to the use of eminent domain
49.17authority by public service corporations for any purpose other than construction or expansion
49.18of:
49.19(1) a high-voltage transmission line of 100 kilovolts or more, or ancillary substations;
49.20or
49.21(2) a natural gas, petroleum, or petroleum products pipeline, or ancillary compressor
49.22stations or pumping stations; or
49.23(3) a light rail transit or bus rapid transit line.
49.24    (b) For purposes of an award of appraisal fees under section 117.085, the fees awarded
49.25may not exceed $1,500 for all types of property except for a public service corporation's
49.26use of eminent domain for a high-voltage transmission line, where the award may not exceed
49.27$3,000.
49.28(c) For purposes of this section, "pipeline" does not include a natural gas distribution
49.29line transporting gas to an end user.
49.30EFFECTIVE DATE.This section is effective retroactively from January 1, 2017.

50.1    Sec. 2. Minnesota Statutes 2016, section 473.388, subdivision 2, is amended to read:
50.2    Subd. 2. Replacement service; eligibility. (a) The council may provide assistance under
50.3the program to a statutory or home rule charter city or town or combination thereof, that:
50.4(a) (1) is located in the metropolitan transit taxing district;
50.5(b) (2) is not served by the council bus service or is served only with council bus routes
50.6which begin or end within the applying city or town or combination thereof; and
50.7(c) (3) has fewer than four scheduled runs of council bus service during off-peak hours
50.8as defined by the Metropolitan Council.
50.9(b) Eligible cities or towns or combinations thereof may apply on behalf of a transit
50.10operator with whom they propose to contract for service.
50.11(c) The council may not provide assistance under this section to a statutory or home rule
50.12charter city or town unless:
50.13(1) the city or town,:
50.14(i) was receiving assistance under Minnesota Statutes 1982, section 174.265, by July 1,
50.151984,;
50.16(ii) had submitted an application for assistance under that section by July 1, 1984,; or
50.17(iii) had submitted a letter of intent to apply for assistance under that section by July 1,
50.181984, and submits an application for assistance under this section by July 1, 1988. A statutory
50.19or home rule charter city or town has an additional 12-month extension if it notified the
50.20former regional transit board before July 1, 1988, that the city or town is in the process of
50.21completing a transportation evaluation study that includes an assessment of the local transit
50.22needs of the city or town; or
50.23(2) the city or town submits an application for assistance under this section between July
50.241, 2017, and December 31, 2017.

50.25    Sec. 3. Minnesota Statutes 2016, section 473.4051, subdivision 2, is amended to read:
50.26    Subd. 2. Operating costs. (a) After operating revenue and federal money have been
50.27used to pay for light rail transit operations, 50 percent of the remaining operating costs for
50.28a light rail transit line must be paid by the state if:
50.29(1) the light rail transit line is in revenue operations as of the effective date of this section;
50.30or
51.1(2) a law is enacted on or after the effective date of this section making an appropriation
51.2that (i) is from state sources, (ii) specifies the light rail transit project, and (iii) is for a portion
51.3of project capital costs.
51.4(b) For a light rail transit line that does not meet the requirements in paragraph (a), all
51.5operating and ongoing capital maintenance costs must be paid from nonstate sources.
51.6(c) For purposes of this subdivision, a light rail transit extension that adds additional
51.7stops is a separate project or light rail transit line.
51.8EFFECTIVE DATE; APPLICABILITY.This section is effective the day following
51.9final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
51.10Scott, and Washington.

51.11    Sec. 4. METRO MOBILITY ENHANCEMENT TASK FORCE.
51.12    Subdivision 1. Task force established. A Metro Mobility Enhancement Task Force is
51.13established to examine options to enhance Metro Mobility program service under Minnesota
51.14Statutes, section 473.386. The goal of the task force is to partner with taxi services and
51.15transportation network companies, as defined in Minnesota Statutes, section 65B.472,
51.16subdivision 1, paragraph (e), to increase program service levels and efficiency.
51.17    Subd. 2. Membership. (a) The task force consists of the following members:
51.18(1) one representative from Metro Mobility, appointed by the Metropolitan Council;
51.19(2) one elected official from each metropolitan county, as defined in Minnesota Statutes,
51.20section 473.121, subdivision 4, each of whom must be from a district or unit of government
51.21that is located within the Metro Mobility service area, appointed by the respective county
51.22board in consultation with cities in that county;
51.23(3) at least one and no more than three individuals representing transportation network
51.24companies, as defined in Minnesota Statutes, section 65B.472, subdivision 1, appointed as
51.25provided under paragraph (b);
51.26(4) at least one and no more than three individuals representing taxi service providers,
51.27appointed as provided in paragraph (c);
51.28(5) one representative appointed by the Transportation Accessibility Advisory Committee
51.29established under Minnesota Statutes, section 473.375, subdivision 9a;
51.30(6) one representative appointed by the Council on Disability;
51.31(7) one individual appointed by the Association of Residential Resources of Minnesota;
52.1(8) one individual, who must reside in a metropolitan county, appointed by the Best
52.2Choice Alliance; and
52.3(9) one individual appointed by the Center for Transportation Studies at the University
52.4of Minnesota.
52.5(b) An interested transportation network company may appoint no more than one person
52.6as a task force member. Appointment under this paragraph is on a first-come, first-appointed
52.7basis by written notification to the Metropolitan Council.
52.8(c) An interested taxi service provider may appoint no more than one person as a task
52.9force number. Appointment under this paragraph is on a first-come, first-appointed basis
52.10by written notification to the Metropolitan Council.
52.11    Subd. 3. Task force duties. (a) The task force must evaluate the Metro Mobility program,
52.12which must include but is not limited to analysis of customer service, program costs and
52.13expenditures, service coverage area and hours, reservation and scheduling, and buses and
52.14equipment.
52.15(b) The task force must analyze approaches to improve Metro Mobility program service
52.16by using partnerships with transportation network companies. At a minimum, the analysis
52.17must consider:
52.18(1) geographic service areas of transportation network companies;
52.19(2) demand responsiveness and service levels of transportation network companies;
52.20(3) the share of trips in which specially equipped vehicles that comply with the Americans
52.21with Disabilities Act are necessary;
52.22(4) technology accessibility for Metro Mobility customers;
52.23(5) liability considerations; and
52.24(6) integration of billing systems of transportation network companies with current Metro
52.25Mobility fare collection.
52.26(c) The task force must analyze approaches to improve Metro Mobility program service
52.27by incorporating the use of taxi service. At a minimum, the analysis must consider:
52.28(1) availability of taxi service throughout the Metro Mobility service area;
52.29(2) demand responsiveness and service levels of taxi services;
52.30(3) the share of trips in which specially equipped vehicles that comply with the Americans
52.31with Disabilities Act are necessary;
53.1(4) technology accessibility for Metro Mobility customers;
53.2(5) liability considerations;
53.3(6) options for contracting with taxi providers or other methods of billing for taxi rides;
53.4and
53.5(7) the potential to use taxi service to provide an enhanced service option where riders
53.6pay a higher fare than other users of Metro Mobility Services.
53.7(d) The task force must review proposals and models for incorporating transportation
53.8network companies and taxi service providers into transit systems in other service areas.
53.9    Subd. 4. Administration. (a) Each appointing entity under subdivision 2 must make
53.10appointments and notify the Metropolitan Council by August 1, 2017.
53.11(b) The Metropolitan Council representative appointed to the task force must convene
53.12the initial meeting of the task force no later than September 1, 2017. At the initial meeting,
53.13the members of the task force must elect a chair or cochairs from among the task force
53.14members.
53.15(c) Upon request of the task force, the council must use existing resources to provide
53.16data, information, meeting space, and administrative services.
53.17(d) Members of the task force serve without compensation or payment of expenses.
53.18(e) The task force may accept gifts and grants, which are accepted on behalf of the state
53.19and constitute donations to the Metropolitan Council. Funds received under this paragraph
53.20are appropriated to the Metropolitan Council for purposes of the task force.
53.21    Subd. 5. Legislative report. (a) By February 15, 2018, the task force must submit a
53.22report to the chairs and ranking minority members of the legislative committees with
53.23jurisdiction over transportation policy and finance.
53.24(b) At a minimum the report must:
53.25(1) summarize the work of the task force and its findings;
53.26(2) describe the current Metro Mobility program;
53.27(3) identify at least three potential service level approaches that involve partnering with
53.28and incorporating transportation network companies, taxi service providers, or both; and
53.29(4) provide any recommendations for program and legislative changes.
53.30    Subd. 6. Expiration. The task force under this section expires February 15, 2018, or
53.31upon submission of the report required under subdivision 5, whichever is earlier.

54.1    Sec. 5. VIBRATION SUSCEPTIBILITY STUDY ON CALHOUN ISLES
54.2PROPERTY.
54.3Within 21 days of the effective date of this act, the Metropolitan Council must enter into
54.4a contract with an engineering group for the engineering group to conduct a vibration
54.5susceptibility study on Calhoun Isles property, including the high-rise building, townhomes,
54.6and parking ramp. The study must:
54.7(1) evaluate the susceptibility of the Calhoun Isles property to vibration during
54.8construction and during operations of a light rail train;
54.9(2) categorize the Calhoun Isles property based on the susceptibility evaluation; and
54.10(3) address mitigation measures and operational changes required to protect the Calhoun
54.11Isles property from vibratory damage.
54.12The Calhoun Isles Condominium Association must select the engineering group and notify
54.13the Metropolitan Council of the selection within seven days of the effective date of this act.
54.14The Metropolitan Council must bear the entire cost of the study.
54.15EFFECTIVE DATE.This section is effective the day following final enactment.

54.16ARTICLE 6
54.17DEPARTMENT OF PUBLIC SAFETY

54.18    Section 1. Minnesota Statutes 2016, section 168.013, subdivision 1d, is amended to read:
54.19    Subd. 1d. Trailer. (a) On trailers registered at a gross vehicle weight of greater than
54.203,000 pounds, the annual tax is based on total gross weight and is 30 percent of the Minnesota
54.21base rate prescribed in subdivision 1e, when the gross weight is 15,000 pounds or less, and
54.22when the gross weight of a trailer is more than 15,000 pounds, the tax for the first eight
54.23years of vehicle life is 100 percent of the tax imposed in the Minnesota base rate schedule,
54.24and during the ninth and succeeding years of vehicle life the tax is 75 percent of the
54.25Minnesota base rate prescribed by subdivision 1e. A trailer registered at a gross vehicle
54.26weight greater than 3,000 pounds but no greater than 7,200 pounds may be taxed either: (1)
54.27annually as provided in this paragraph; or (2) once every three years on the basis of total
54.28gross weight and is 90 percent of the Minnesota base rate prescribed in subdivision 1e,
54.29provided that the filing fee under section 168.33, subdivision 7, paragraph (a), is multiplied
54.30by three, with funds collected by the commissioner allocated proportionally in the same
54.31manner as provided in section 168.33, subdivision 7, paragraph (e).
55.1(b) Farm trailers with a gross weight in excess of 10,000 pounds and as described in
55.2section 168.002, subdivision 8, are taxed as farm trucks as prescribed in subdivision 1c.
55.3(c) Effective on and after July 1, 2001, trailers registered at a gross vehicle weight of
55.43,000 pounds or less must display a distinctive plate. The registration on the license plate
55.5is valid for the life of the trailer only if it remains registered at the same gross vehicle weight.
55.6The onetime registration tax for trailers registered for the first time in Minnesota is $55.
55.7For trailers registered in Minnesota before July 1, 2001, and for which:
55.8(1) registration is desired for the remaining life of the trailer, the registration tax is $25;
55.9or
55.10(2) permanent registration is not desired, the biennial registration tax is $10 for the first
55.11renewal if registration is renewed between and including July 1, 2001, and June 30, 2003.
55.12These trailers must be issued permanent registration at the first renewal on or after July 1,
55.132003, and the registration tax is $20.
55.14    For trailers registered at a gross weight of 3,000 pounds or less before July 1, 2001, but
55.15not renewed until on or after July 1, 2003, the registration tax is $20 and permanent
55.16registration must be issued.

55.17    Sec. 2. Minnesota Statutes 2016, section 168.021, subdivision 1, is amended to read:
55.18    Subdivision 1. Disability plates; application. (a) When a motor vehicle registered under
55.19section 168.017, a motorcycle, a motorized bicycle, a one-ton pickup truck, or a self-propelled
55.20recreational vehicle is owned or primarily operated by a permanently physically disabled
55.21person or a custodial parent or guardian of a permanently physically disabled minor, the
55.22owner may apply for and secure from the commissioner (1) immediately, a temporary permit
55.23valid for 30 days if the applicant is eligible for the disability plates issued under this section
55.24and (2) two disability plates with attached emblems, one plate to be attached to the front,
55.25and one to the rear of the motor vehicle, truck, or recreational vehicle, or, in the case of a
55.26motorcycle or a motorized bicycle, one disability plate the same size as a regular motorcycle
55.27plate.
55.28    (b) The commissioner shall not issue more than one plate to the owner of a motorcycle
55.29or a motorized bicycle and not more than one set of plates to any owner of another vehicle
55.30described in paragraph (a) at the same time unless the state Council on Disability approves
55.31the issuance of a second plate or set of plates to an owner.
56.1    (c) When the owner first applies for the disability plate or plates, the owner must submit
56.2a medical statement in a format approved by the commissioner under section 169.345, or
56.3proof of physical disability provided for in that section.
56.4    (d) No medical statement or proof of disability is required when an owner applies for a
56.5plate or plates for one or more vehicles listed in paragraph (a) that are specially modified
56.6for and used exclusively by permanently physically disabled persons.
56.7    (e) The owner of a vehicle listed in paragraph (a) may apply for and secure (i)
56.8immediately, a permit valid for 30 days, if the applicant is eligible to receive the disability
56.9plate or plates issued under this section, and (ii) a disability plate or plates for the vehicle
56.10if:
56.11    (1) the owner employs a permanently physically disabled person who would qualify for
56.12the disability plate or plates under this section; and
56.13    (2) the owner furnishes the motor vehicle to the physically disabled person for the
56.14exclusive use of that person in the course of employment.
56.15EFFECTIVE DATE.This section is effective January 1, 2018.

56.16    Sec. 3. Minnesota Statutes 2016, section 168.021, subdivision 2, is amended to read:
56.17    Subd. 2. Plate design; furnished by commissioner. The commissioner shall design
56.18and furnish two disability plates, or one disability plate for a motorcycle or a motorized
56.19bicycle that is the same size as a regular motorcycle plate, with attached emblem or emblems
56.20to an eligible owner. The emblem must bear the internationally accepted wheelchair symbol,
56.21as designated in section 326B.106, subdivision 9, approximately three inches square. The
56.22emblem must be large enough to be visible plainly from a distance of 50 feet. An applicant
56.23eligible for a disability plate or plates shall pay the motor vehicle registration fee authorized
56.24by sections 168.013 and 168.09.
56.25EFFECTIVE DATE.This section is effective January 1, 2018.

56.26    Sec. 4. Minnesota Statutes 2016, section 168.021, subdivision 2a, is amended to read:
56.27    Subd. 2a. Plate transfer. (a) When ownership of a vehicle described in subdivision 1,
56.28is transferred, the owner of the vehicle shall remove the disability plate or plates. The buyer
56.29of the motor vehicle is entitled to receive a regular plate or plates for the vehicle without
56.30further cost for the remainder of the registration period.
57.1(b) Notwithstanding section 168.12, subdivision 1, the disability plate or plates may be
57.2transferred to a replacement vehicle on notification to the commissioner. However, the
57.3disability plate or plates may not be transferred unless the replacement vehicle (1) is listed
57.4under section 168.012, subdivision 1, and, in case of a single plate for a motorcycle or a
57.5motorized bicycle, the replacement vehicle is a motorcycle or a motorized bicycle, and (2)
57.6is owned or primarily operated by the permanently physically disabled person.
57.7EFFECTIVE DATE.This section is effective January 1, 2018.

57.8    Sec. 5. [168.1294] LAW ENFORCEMENT MEMORIAL PLATES.
57.9    Subdivision 1. Issuance of plates. The commissioner must issue special law enforcement
57.10memorial license plates or a single motorcycle plate to an applicant who:
57.11(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup
57.12truck, motorcycle, or recreational motor vehicle;
57.13(2) pays an additional fee of $10 for each set of plates;
57.14(3) pays the registration tax as required under section 168.013, along with any other fees
57.15required by this chapter;
57.16(4) contributes $25 upon initial application and a minimum of $5 annually to the law
57.17enforcement memorial account; and
57.18(5) complies with this chapter and rules governing registration of motor vehicles and
57.19licensing of drivers.
57.20    Subd. 2. Design. The commissioner, in consultation with representatives from the
57.21Minnesota Law Enforcement Memorial Association, must adopt a suitable design for the
57.22plate that must include a blue line with a black line of equal proportion above and below
57.23the blue line, representing the thin blue line.
57.24    Subd. 3. Plates transfer. On application to the commissioner and payment of a transfer
57.25fee of $5, special plates may be transferred to another qualified motor vehicle that is
57.26registered to the same individual to whom the special plates were originally issued.
57.27    Subd. 4. Exemption. Special plates issued under this section are not subject to section
57.28168.1293, subdivision 2.
57.29    Subd. 5. Fees. Fees collected under subdivision 1, clauses (2) and (3), and subdivision
57.303 are credited to the vehicle services operating account in the special revenue fund.
58.1    Subd. 6. Contributions; memorial account; appropriation. Contributions collected
58.2under subdivision 1, clause (4), must be deposited in the Minnesota law enforcement
58.3memorial account, which is established in the special revenue fund. Money in the account
58.4is appropriated to the commissioner of public safety. This appropriation is first for the annual
58.5cost of administering the account funds, and the remaining funds are for distribution to the
58.6Minnesota Law Enforcement Memorial Association to be used to further the mission of the
58.7association in assisting the families and home agencies of Minnesota law enforcement
58.8officers who have died in the line of duty.
58.9EFFECTIVE DATE.This section is effective January 1, 2018, for special law
58.10enforcement memorial plates issued on or after that date.

58.11    Sec. 6. [168.1295] "START SEEING MOTORCYCLES" PLATES.
58.12    Subdivision 1. Issuance of plates. The commissioner must issue special "Start Seeing
58.13Motorcycles" license plates or a single motorcycle plate to an applicant who:
58.14(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup
58.15truck, motorcycle, or recreational motor vehicle;
58.16(2) pays a fee of $10 for each set of plates;
58.17(3) pays the registration tax as required under section 168.013, along with any other fees
58.18required by this chapter;
58.19(4) contributes a minimum of $10 annually to the motorcycle safety fund, created under
58.20section 171.06, subdivision 2a, paragraph (a), clause (1); and
58.21(5) complies with this chapter and rules governing registration of motor vehicles and
58.22licensing of drivers.
58.23    Subd. 2. Design. The representatives of American Bikers for Awareness, Training, and
58.24Education of Minnesota must design the special plate to contain the inscription "Start Seeing
58.25Motorcycles" between the bolt holes on the bottom of the plate with a design area on the
58.26left side of the plate, subject to the approval of the commissioner.
58.27    Subd. 3. Plates transfer. On application to the commissioner and payment of a transfer
58.28fee of $5, special plates issued under this section may be transferred to another motor vehicle
58.29if the subsequent vehicle is:
58.30(1) qualified under subdivision 1, clause (1), to bear the special plates; and
58.31(2) registered to the same individual to whom the special plates were originally issued.
59.1    Subd. 4. Exemption. Special plates issued under this section are not subject to section
59.2168.1293, subdivision 2.
59.3    Subd. 5. Fees. Fees collected under subdivision 1, clause (2), and subdivision 3 are
59.4credited to the vehicle services operating account in the special revenue fund.
59.5    Subd. 6. No refund. Contributions under this section must not be refunded.
59.6EFFECTIVE DATE.This section is effective January 1, 2018, for special "Start Seeing
59.7Motorcycles" plates issued on or after that date.

59.8    Sec. 7. Minnesota Statutes 2016, section 168A.09, subdivision 1, is amended to read:
59.9    Subdivision 1. Application, issuance, form, bond, and notice. In the event a certificate
59.10of title is lost, stolen, mutilated, or destroyed, or becomes illegible, the owner or legal
59.11representative of the owner named in the certificate may make submit an application to the
59.12department or a deputy registrar for a duplicate in a format prescribed by the department.
59.13The department shall or deputy registrar must issue a duplicate certificate of title if satisfied
59.14that the applicant is entitled thereto to the duplicate certificate of title. The duplicate certificate
59.15of title shall must be plainly marked as a duplicate and mailed or delivered to the owner.
59.16The department shall or deputy registrar must indicate in its the driver and vehicle information
59.17system records that a duplicate certificate of title has been issued. As a condition to issuing
59.18a duplicate certificate of title, the department may require a bond from the applicant in the
59.19manner and format prescribed in section 168A.07, subdivision 1, clause (2). The duplicate
59.20certificate of title shall must contain the legend: "This duplicate certificate of title may be
59.21subject to the rights of a person under the original certificate."

59.22    Sec. 8. [168A.125] TRANSFER-ON-DEATH TITLE TO MOTOR VEHICLE.
59.23    Subdivision 1. Titled as transfer-on-death. A natural person who is the owner of a
59.24motor vehicle may have the motor vehicle titled in transfer-on-death or TOD form by
59.25including in the application for the certificate of title a designation of a beneficiary or
59.26beneficiaries to whom the motor vehicle must be transferred on death of the owner or the
59.27last survivor of joint owners with rights of survivorship, subject to the rights of secured
59.28parties.
59.29    Subd. 2. Designation of beneficiary. A motor vehicle is registered in transfer-on-death
59.30form by designating on the certificate of title the name of the owner and the names of joint
59.31owners with identification of rights of survivorship, followed by the words "transfer-on-death
59.32to (name of beneficiary or beneficiaries)." The designation "TOD" may be used instead of
60.1"transfer-on-death." A title in transfer-on-death form is not required to be supported by
60.2consideration, and the certificate of title in which the designation is made is not required to
60.3be delivered to the beneficiary or beneficiaries in order for the designation to be effective.
60.4If the owner of the motor vehicle is married at the time of the designation, the designation
60.5of a beneficiary other than the owner's spouse requires the spouse's written consent.
60.6    Subd. 3. Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries have
60.7no interest in the motor vehicle until the death of the owner or the last survivor of joint
60.8owners with rights of survivorship. A beneficiary designation may be changed at any time
60.9by the owner or by all joint owners with rights of survivorship, without the consent of the
60.10beneficiary or beneficiaries, by filing an application for a new certificate of title.
60.11    Subd. 4. Vesting of ownership in beneficiary. Ownership of a motor vehicle titled in
60.12transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of
60.13the owner or the last of the joint owners with rights of survivorship, subject to the rights of
60.14secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner
60.15may apply for a new certificate of title to the motor vehicle upon submitting a certified death
60.16record of the owner of the motor vehicle. If no transfer-on-death beneficiary or beneficiaries
60.17survive the owner of a motor vehicle, the motor vehicle must be included in the probate
60.18estate of the deceased owner. A transfer of a motor vehicle to a transfer-on-death beneficiary
60.19or beneficiaries is not a testamentary transfer.
60.20    Subd. 5. Rights of creditors. (a) This section does not limit the rights of any secured
60.21party or creditor of the owner of a motor vehicle against a transfer-on-death beneficiary or
60.22beneficiaries.
60.23(b) The state or a county agency with a claim or lien authorized by section 246.53,
60.24256B.15, 261.04, or 270C.63 is a creditor for purposes of this subdivision. A claim authorized
60.25by section 256B.15 against the estate of an owner of a motor vehicle titled in
60.26transfer-on-death form voids any transfer-on-death conveyance of a motor vehicle as
60.27described in this section. A claim or lien under section 246.53, 261.04, or 270C.63 continues
60.28to apply against the designated beneficiary or beneficiaries after the transfer under this
60.29section if other assets of the deceased owner's estate are insufficient to pay the amount of
60.30the claim. The claim or lien continues to apply to the motor vehicle until the designated
60.31beneficiary sells or transfers it to a person against whom the claim or lien does not apply
60.32and who did not have actual notice or knowledge of the claim or lien.

60.33    Sec. 9. Minnesota Statutes 2016, section 168A.141, is amended to read:
60.34168A.141 MANUFACTURED HOME AFFIXED TO REAL PROPERTY.
61.1    Subdivision 1. Certificates surrendered for cancellation. (a) When a manufactured
61.2home is to be affixed or is affixed, as defined in section 273.125, subdivision 8, paragraph
61.3(b), to real property, and financed by the giving of a mortgage on the real property, the
61.4owner of the manufactured home shall may surrender the manufacturer's certificate of origin
61.5or certificate of title to the department for cancellation. The owner of so that the manufactured
61.6home shall give the department the address and legal description of the becomes an
61.7improvement to real property. The department may require the filing of other information
61.8and is no longer titled as personal property. The department must not issue a certificate of
61.9title for a manufactured home under chapter 168A if the manufacturer's certificate of origin
61.10is or has been surrendered under this subdivision, except as provided in section 168A.142.
61.11Upon surrender of the manufacturer's certificate of origin or the certificate of title, the
61.12department shall issue notice of surrender to the owner, and upon recording an affidavit of
61.13affixation, which the county recorder or registrar of titles, as applicable, shall accept, the
61.14manufactured home is deemed to be an improvement to real property. The notice of surrender
61.15may be recorded in the office of the county recorder or with the registrar of titles if the land
61.16is registered but need not contain an acknowledgment. An affidavit of affixation by the
61.17owner of the manufactured home must include the following information:
61.18(1) the name, residence address, and mailing address of owner or owners of the
61.19manufactured home;
61.20(2) the legal description of the real property in which the manufactured home is, or will
61.21be, located;
61.22(3) a copy of the surrendered manufacturer's certificate of origin or certificate of title
61.23and the notice of surrender;
61.24(4) a written statement from the county auditor or county treasurer of the county where
61.25the manufactured home is located stating that all property taxes payable in the current year,
61.26as provided under section 273.125, subdivision 8, paragraph (b), have been paid, or are not
61.27applicable;
61.28(5) the name and address of the person designated by the applicant to record the original
61.29affidavit of affixation with the county recorder or registrar of titles for the county where the
61.30real property is located;
61.31(6) the signature of the person who executes the affidavit, properly executed before a
61.32person authorized to authenticate an affidavit in this state;
62.1(7) the person designated in clause (5) shall record, or arrange for the recording of, the
62.2affidavit of affixation, accompanied by the fees for recording and for issuing a certified
62.3copy of the notice, including all attachments, showing the recording date; and
62.4(8) upon obtaining the certified copy of the notice under clause (7), the person designated
62.5in the affidavit shall deliver the certified copy to the county auditor of the county in which
62.6the real property to which the manufactured home was affixed is located.
62.7    (b) The department is not liable for any errors, omissions, misstatements, or other
62.8deficiencies or inaccuracies in documents presented to the department under this section,
62.9if the documents presented appear to satisfy the requirements of this section. The department
62.10has no obligation to investigate the accuracy of statements contained in the documents.
62.11    Subd. 1a. Affidavit form. The affidavit referred to in subdivision 1 shall be in
62.12substantially the following form and shall contain the following information.
62.13MANUFACTURED HOME AFFIDAVIT OF AFFIXATION
62.14PURSUANT TO MINNESOTA STATUTES, SECTION 168A.141
62.15Homeowner, being duly sworn, on his or her oath, states as follows:
62.161. Homeowner owns the manufactured home ("home") described as follows:
62.17
.....
62.18
62.19
New/Used
Year
Manufacturer's
Name
Model Name or
Model No.
Manufacturer's
Serial No.
Length/Width
62.202. A copy of the surrendered manufacturer's certificate of origin or certificate of title is
62.21attached hereto.
62.223. A copy of the notice of surrender issued from the Minnesota Department of Public Safety
62.23Driver and Vehicle Services is attached hereto.
62.244. The home is or will be located at the following "Property Address":
62.25
.....
62.26
Street or Route .....
City .....
County .....
State .....
Zip Code .....
62.275. The legal description of the property address ("land") is as follows or as attached hereto:
62.28
.....
62.29
.....
62.30
.....
62.316. The homeowner is the owner of the land.
63.17. The home is, or shall be promptly upon delivery, anchored to the land by attachment to
63.2a permanent foundation and connected to appropriate residential utilities (e.g., water, gas,
63.3electricity, sewer).
63.48. The homeowner intends that the home be an immovable permanent improvement to the
63.5land, free of any personal property security interest.
63.69. A copy of the written statement from the county auditor or county treasurer of the county
63.7in which the manufactured home is then located, stating that all property taxes payable in
63.8the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph
63.9(b)), have been paid, or are not applicable, is attached hereto.
63.1010. The home shall be assessed and taxed as an improvement to the land.
63.1111. The name and address of the person designated by the homeowner to record the original
63.12affidavit of surrender with the county recorder or registrar of titles of the county in which
63.13the real estate is located is:
63.14
Name .....
63.15
Street Address .....
63.16
City, State, Zip Code .....
63.17
Phone .....
63.18
E-mail .....
63.19IN WITNESS WHEREOF, homeowner(s) have executed this affidavit on this ....... day of
63.20......., 20...
63.21
.....
.....
63.22
Homeowner Signature
Address
63.23
.....
.....
63.24
Printed Name
City, State
63.25
.....
63.26
Homeowner Signature (if applicable)
63.27
.....
63.28
Printed Name
63.29This instrument was drafted by, and when recorded return to:
63.30
.....
63.31
.....
63.32
.....
63.33Subscribed and sworn to before me this ....... day of ......., .......
63.34
......................................................................
64.1
Signature of Notary Public or Other Official
64.2Notary Stamp or Seal
64.3(optional)
64.4Lender's Statement of Intent:
64.5The undersigned ("lender") intends that the home be immovable and a permanent
64.6improvement to the land free of any personal property security interest.
64.7
.....
64.8
Lender
64.9
By: .....
64.10
Authorized Signature
64.11
STATE OF ..... )
64.12
..... ) ss:
64.13
COUNTY OF ..... )
64.14On the ....... day of ....... in the year ....... before me, the undersigned, a Notary Public in and
64.15for said state, personally appeared
64.16
.....
64.17personally known to me or proved to me on the basis of satisfactory evidence to be the
64.18individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged
64.19to me that he/she/they executed the same in his/her/their capacity(ies), and that by
64.20his/her/their signature(s) on the instrument, the individual(s), or the person on behalf of
64.21which the individual(s) acted, executed the instrument.
64.22
.....
64.23
Notary Signature
64.24
.....
64.25
Notary Printed Name
64.26
Notary Public, State of .....
64.27
Qualified in the County of .....
64.28
My commission expires .....
64.29Official seal:
64.30    Subd. 2. Perfected security interest avoids cancellation prevents surrender. The
64.31department may not cancel a certificate of title if, under this chapter, a security interest has
64.32been perfected on the manufactured home. If a security interest has been perfected, the
64.33department shall notify the owner and that each secured party that the must release or satisfy
64.34the security interest prior to proceeding with surrender of the manufacturer's certificate of
65.1origin or certificate of title and a description of the security interest have been surrendered
65.2to the department and that the department will not cancel the certificate of title until the
65.3security interest is satisfied for cancellation. Permanent attachment to real property or the
65.4recording of an affidavit of affixation does not extinguish an otherwise valid security interest
65.5in or tax lien on the manufactured home, unless the requirements of section 168A.141,
65.6subdivisions 1, 1a, and 2, including the release of any security interest, have been satisfied.
65.7    Subd. 3. Notice of security interest avoids surrender. The manufacturer's certificate
65.8of origin or the certificate of title need not be surrendered to the department under subdivision
65.91 When a perfected security interest exists, or will exist, on the manufactured home at the
65.10time the manufactured home is affixed to real property, if and the owner has not satisfied
65.11the requirements of section 168A.141, subdivision 1, the owner of the manufactured home
65.12files, or its secured party, may record a notice with the county recorder, or with the registrar
65.13of titles, if the land is registered, stating that the manufactured home located on the property
65.14is encumbered by a perfected security interest and is not an improvement to real property.
65.15The notice must state the name and address of the secured party as set forth on the certificate
65.16of title, the legal description of the real property, and the name and address of the record
65.17fee owner of the real property on which the manufactured home is affixed. When the security
65.18interest is released or satisfied, the secured party shall attach a copy of the release or
65.19satisfaction to a notice executed by the secured party containing the county recorder or
65.20registrar of titles document number of the notice of security interest. The notice of release
65.21or satisfaction must be filed recorded with the county recorder, or registrar of titles, if the
65.22land is registered. Neither the notice described in this subdivision nor the security interest
65.23on the certificate of title is deemed to be an encumbrance on the real property. The notices
65.24provided for in this subdivision need not be acknowledged.

65.25    Sec. 10. Minnesota Statutes 2016, section 168A.142, is amended to read:
65.26168A.142 MANUFACTURED HOME UNAFFIXED FROM REALTY.
65.27    Subdivision 1. Certificate of title requirements. The department shall issue an initial
65.28certificate of title or reissue a previously surrendered certificate of title for a manufactured
65.29home to an applicant if:
65.30(1) for the purpose of affixing the manufactured home to real property, the owner of the
65.31manufactured home, or a previous owner, surrendered the manufacturer's certificate of
65.32origin or certificate of title to the department as provided in section 168A.141, subdivision
65.331 or 2;
66.1(2) the applicant provides the written proof evidence specified in subdivision 2 that the
66.2applicant owns (i) the manufactured home and (ii) the real property to which the
66.3manufactured home was affixed as provided under section 273.125, subdivision 8, paragraph
66.4(b);
66.5(3) the applicant provides proof that no liens exist on the manufactured home, including
66.6liens on the real property to which it is affixed; and
66.7(4) (3) the owner of the manufactured home meets fulfills the applicable application
66.8requirements of section 168A.04,; and
66.9(4) the application is accompanied by a written statement from the county auditor or
66.10county treasurer of the county in which the manufactured home is then located and affixed,
66.11stating that all property taxes payable in the current year, as provided under section 273.125,
66.12subdivision 8
, paragraph (b), have been paid.
66.13    Subd. 2. Proof Evidence of eligibility for reissuance. (a) The proof evidence required
66.14under subdivision 1, clauses clause (2) and (3), is as follows:
66.15(1) an affidavit of severance recorded in the office of the county recorder or registrar of
66.16titles, which they shall accept, and whichever applies to the real property, of the county in
66.17which where the affidavit of affixation or notice of surrender was recorded under as required
66.18in section 168A.141, subdivision 1, and the affidavit of severance contains:
66.19(i) the name, residence address, and mailing address of the owner or owners of the
66.20manufactured home;
66.21(ii) a description of the manufactured home being severed, including the name of the
66.22manufacturer; the make, model number, model year, and dimensions, and if available, the
66.23make, model year, and manufacturer's serial number of the manufactured home; and whether
66.24the manufactured home is new or used, such information as may be available from the
66.25previously recorded affidavit of affixation or notice of surrender as required in section
66.26168A.141, subdivision 1; and
66.27(iii) a statement of any facts or information known to the person executing the affidavit
66.28that could affect the validity of the title of the manufactured home or, the existence or
66.29nonexistence of a security interest in the manufactured home or a lien on it, or, and a
66.30statement that no such facts or information are known to the person executing the affidavit;
66.31(2) as an attachment to the affidavit of severance, an opinion by an attorney admitted to
66.32practice law in this state, stating:
67.1(i) the nature of the examination of title performed prior to giving this opinion by the
67.2person signing the opinion;
67.3(ii) that the manufactured home and the real property on which it is located is not subject
67.4to, or pending completion of a refinance, purchase, or sale transaction, and will not be
67.5subject to any recorded mortgages, security interests, liens, or other encumbrances of any
67.6kind;
67.7(iii) that the person signing the opinion knows of no facts or circumstances that could
67.8affect the validity of the title of the manufactured home or the existence or nonexistence of
67.9any recorded mortgages, security interests, or other encumbrances of any kind, other than
67.10property taxes payable in the year the affidavit is signed;
67.11(iv) the person or persons owning record title to the real property to which the
67.12manufactured home has been affixed and the nature and extent of the title owned by each
67.13of these persons; and
67.14(v) that the person signing the opinion has reviewed all provisions of the affidavit of
67.15severance and certifies that they are correct and complete to the best of the knowledge of
67.16the person signing the opinion;
67.17(3) the name and address of the person or, persons designated by the applicant to file a
67.18certified copy of the original affidavit of severance with the county auditor of the county
67.19in which the real estate is located, after the affidavit has been properly recorded in the office
67.20of the county recorder or county registrar of titles, whichever applies to the real property;
67.21and
67.22(4) the signature of the person who executes the affidavit, properly executed before a
67.23person authorized to authenticate an affidavit in this state.
67.24(b) The person designated in paragraph (a), clause (3), shall record, or arrange for the
67.25recording of, the affidavit of severance as referenced in that item, accompanied by the fees
67.26for recording and for issuing a certified copy of the affidavit, including all attachments,
67.27showing the recording date.
67.28(c) Upon obtaining the certified copy under paragraph (b), the person designated in the
67.29affidavit shall deliver the certified copy to the county auditor of the county in which the
67.30real estate to which it was affixed is located.
67.31(d) The department is not liable for any errors, omissions, misstatements, or other
67.32deficiencies or inaccuracies in documents presented to the department under this section,
67.33so long as the documents presented appear to satisfy the requirements of this section. The
68.1department has no obligation to investigate the accuracy of statements contained in the
68.2documents.
68.3    Subd. 3. Affidavit form. The affidavit referred to in subdivision 2 shall be in substantially
68.4the following form and shall contain the following information.
68.5MANUFACTURED HOME AFFIDAVIT OF SEVERANCE
68.6PURSUANT TO MINNESOTA STATUTES, SECTION 168A.142
68.7Homeowner, being duly sworn, on his or her oath, states as follows:
68.81. Homeowner owns the manufactured home ("home") described as follows:
68.9
.....
68.10
68.11
New/Used
Year
Manufacturer's
Name
Model Name or
Model No.
Manufacturer's
Serial No.
Length/Width
68.122. A copy of the previously surrendered manufacturer's certificate of origin or certificate of
68.13title is attached hereto (if available).
68.143. A copy of the notice of surrender issued from the Minnesota Department of Public Safety
68.15Driver and Vehicle Services is attached hereto (if available).
68.164. The home is or will be located at the following "Property Address":
68.17
.....
68.18
Street or Route .....
City .....
County .....
State .....
Zip Code .....
68.195. The legal description of the property address ("land") is as follows or as attached hereto:
68.20
.....
68.21
.....
68.22
.....
68.236. The homeowner does not know of any facts or information that could affect the validity
68.24of title of the manufactured home, except:
68.25
.....
68.26
.....
68.277. The homeowner does not know of any such security interest in the manufactured home
68.28which has not been satisfied or released.
68.298. A copy of an opinion by an attorney admitted to practice law in Minnesota is attached,
68.30which provides for the required title evidence as set forth in Minnesota Statutes, section
68.31168A.142, subdivision 2, clause (2), items (i) to (v).
69.19. A copy of the written statement from the county auditor or county treasurer of the county
69.2in which the manufactured home is then located, stating that all property taxes payable in
69.3the current year (pursuant to Minnesota Statutes, section 273.125, subdivision 8, paragraph
69.4(b)), have been paid, or are not applicable, is attached hereto.
69.510. The name and address of the person designated by the homeowner to record the original
69.6affidavit of surrender with the county recorder or registrar of titles of the county in which
69.7the real estate is located is:
69.8
Name .....
69.9
Street Address .....
69.10
City, State, Zip Code .....
69.11
Phone .....
69.12
E-mail .....
69.13IN WITNESS WHEREOF, homeowner(s) have executed this affidavit on this ....... day of
69.14......., 20...
69.15
.....
.....
69.16
Homeowner Signature
Address
69.17
.....
.....
69.18
Printed Name
City, State
69.19
.....
69.20
Homeowner Signature (if applicable)
69.21
.....
69.22
Printed Name
69.23This instrument was drafted by, and when recorded return to:
69.24
.....
69.25
.....
69.26Subscribed and sworn to before me this ....... day of ......., .......
69.27
......................................................................
69.28
Signature of Notary Public or Other Official
69.29Notary Stamp or Seal

69.30    Sec. 11. [168A.143] MANUFACTURED HOMES; OWNERSHIP AT ISSUE.
69.31    Subdivision 1. Requirements for certificate issuance or reissuance. When an applicant
69.32is unable to obtain from or locate previous owners no longer holding an interest in the
69.33manufactured home based on a certificate of title, or to locate, obtain, or produce the original
70.1certificate of origin or certificate of title for a manufactured home, and there is no evidence
70.2of a surrendered certificate of title or manufacturer's statement of origin as provided in
70.3section 168A.141, subdivision 1, which has not otherwise been unaffixed or is being
70.4unaffixed as provided in section 168A.142, the department must issue or reissue a certificate
70.5of title to a manufactured home when the applicant submits:
70.6(1) the application, pursuant to the requirements of section 168A.04, in a form prescribed
70.7by the department;
70.8(2) an affidavit that:
70.9(i) identifies the name of the manufacturer and dimensions, and if available, the make,
70.10model number, model year, and manufacturer's serial number of the manufactured home;
70.11and
70.12(ii) certifies the applicant is the owner of the manufactured home, has physical possession
70.13of the manufactured home, knows of no facts or circumstances that materially affect the
70.14validity of the title of the manufactured home as represented in the application, and provides
70.15copies of such ownership documents, so far as the documents exist, including by way of
70.16example:
70.17(A) bill of sale;
70.18(B) financing, replevin, or foreclosure documents;
70.19(C) appraisal;
70.20(D) insurance certification;
70.21(E) personal property tax bill;
70.22(F) landlord certification;
70.23(G) affidavit of survivorship or estate documents;
70.24(H) divorce decree; or
70.25(I) court order;
70.26(3) an affidavit by an attorney admitted to practice law in this state stating:
70.27(i) the attorney has performed a search of the Minnesota Department of Public Safety
70.28Driver and Vehicles Services records within 120 days of the date of application to obtain a
70.29certificate of origin or certificate of title on behalf of the applicant, but was unable to
70.30determine the names or locations of one or more owners or prior owners of the manufactured
70.31home;
71.1(ii) if applicable, the attorney was unable to successfully contact one or more owners,
71.2or prior owners, after providing written notice 45 days prior to the registered and last known
71.3owner by certified mail at the address shown on Driver and Vehicles Services records, or
71.4if the last known address if different from Driver and Vehicles Services records, then also
71.5the last known address as known to the applicant;
71.6(iii) if the attorney is unable to contact one or more owners, or previous owners, by
71.7sending a letter by certified mail, then the attorney must present to the department, as an
71.8attachment to its affidavit, the returned letter as evidence of the attempted contact, or the
71.9acknowledgement of receipt of the letter, together with an affidavit of nonresponse; and
71.10(iv) the attorney knows of no facts or circumstances that materially affect the validity
71.11of the title of the manufactured home as represented in the application, other than property
71.12taxes payable in the year the affidavit is signed; and
71.13(4) payment for required current year taxes and fees as prescribed by the department.
71.14    Subd. 2. Satisfaction of manufactured home security lien; release. A security interest
71.15perfected under this chapter may be canceled seven years from the perfection date for a
71.16manufactured home, upon the request of the owner of the manufactured home, if the owner
71.17has paid the lien in full or the lien has been abandoned and the owner is unable to locate
71.18the lienholder to obtain a lien release. The owner must send a letter to the lienholder by
71.19certified mail, return receipt requested, stating the reason for the release and requesting a
71.20lien release. If the owner is unable to obtain a lien release by sending a letter by certified
71.21mail, then the owner must present to the department the returned letter as evidence of the
71.22attempted contact, or the acknowledgement of receipt of the letter, together with a copy of
71.23the letter and an owner affidavit of nonresponse.
71.24    Subd. 3. Suspension or revocation of certificate. (a) Pursuant to section 168A.23, the
71.25department may revoke a previously issued certificate of title issued under this section.
71.26(b) The department is not liable for any errors, omissions, misstatements, or other
71.27deficiencies or inaccuracies in documents submitted to the department under this section,
71.28provided the documents submitted appear to satisfy the requirements of this section. The
71.29department is not required to investigate the accuracy of statements contained in submitted
71.30documents.

71.31    Sec. 12. Minnesota Statutes 2016, section 169.345, subdivision 1, is amended to read:
71.32    Subdivision 1. Scope of privilege. (a) A vehicle described in section 168.021, subdivision
71.331, paragraph (a), that prominently displays the certificate authorized by this section or that
72.1bears the disability plate or plates issued under section 168.021 may be parked by or solely
72.2for the benefit of a physically disabled person:
72.3(1) in a designated parking space for disabled persons, as provided in section 169.346;
72.4(2) in a metered parking space without obligation to pay the meter fee and without time
72.5restrictions unless time restrictions are separately posted on official signs; and
72.6(3) without time restrictions in a nonmetered space where parking is otherwise allowed
72.7for passenger vehicles but restricted to a maximum period of time and that does not
72.8specifically prohibit the exercise of disabled parking privileges in that space.
72.9A person may park the vehicle for a physically disabled person in a parking space described
72.10in clause (1) or (2) only when actually transporting the physically disabled person for the
72.11sole benefit of that person and when the parking space is within a reasonable distance from
72.12the drop-off point.
72.13(b) For purposes of this subdivision, a certificate is prominently displayed if it is displayed
72.14so that it may be viewed from the front and rear of the motor vehicle by hanging it from the
72.15rearview mirror attached to the front windshield of the motor vehicle or, in the case of a
72.16motorcycle or a motorized bicycle, is secured to the vehicle. If there is no rearview mirror
72.17or if the certificate holder's disability precludes placing the certificate on the mirror, the
72.18certificate must be displayed on the dashboard of the vehicle. No part of the certificate may
72.19be obscured.
72.20(c) Notwithstanding paragraph (a), clauses (1), (2), and (3), this section does not permit
72.21parking in areas prohibited by sections 169.32 and 169.34, in designated no parking spaces,
72.22or in parking spaces reserved for specified purposes or vehicles. A local governmental unit
72.23may, by ordinance, prohibit parking on any street or highway to create a fire lane, or to
72.24accommodate heavy traffic during morning and afternoon rush hours and these ordinances
72.25also apply to physically disabled persons.
72.26EFFECTIVE DATE.This section is effective January 1, 2018.

72.27    Sec. 13. Minnesota Statutes 2016, section 169.345, subdivision 3, is amended to read:
72.28    Subd. 3. Identifying certificate. (a) The commissioner shall issue (1) immediately, a
72.29permit valid for 30 days if the person is eligible for the certificate issued under this section
72.30and (2) an identifying certificate for a vehicle described in section 168.021, subdivision 1,
72.31paragraph (a), when a physically disabled applicant submits proof of physical disability
72.32under subdivision 2a. The commissioner shall design separate certificates for persons with
72.33permanent and temporary disabilities that can be readily distinguished from each other from
73.1outside a vehicle at a distance of 25 feet or, in the case of a motorcycle or a motorized
73.2bicycle, can be readily secured to the motorcycle or motorized bicycle. An applicant may
73.3be issued up to two certificates if the applicant has not been issued disability plates under
73.4section 168.021.
73.5(b) The operator of a vehicle displaying a certificate has the parking privileges provided
73.6in subdivision 1 only while the vehicle is actually parked while transporting a physically
73.7disabled person.
73.8(c) The commissioner shall cancel all certificates issued to an applicant who fails to
73.9comply with the requirements of this subdivision.
73.10EFFECTIVE DATE.This section is effective January 1, 2018.

73.11    Sec. 14. Minnesota Statutes 2016, section 171.06, subdivision 2a, is amended to read:
73.12    Subd. 2a. Two-wheeled vehicle endorsement fee. (a) The fee for any duplicate driver's
73.13license obtained for the purpose of adding a two-wheeled vehicle endorsement is increased
73.14by $18.50 for each first such duplicate license and $13 for each renewal thereof. The
73.15additional fee must be paid into the state treasury and credited as follows:
73.16(1) $11 of the additional fee for each first duplicate license, and $7 of the additional fee
73.17for each renewal, must be credited to the motorcycle safety fund, which is hereby created;
73.18provided that ten percent of fee receipts in excess of $750,000 in a fiscal year must be
73.19credited to the general fund.
73.20(2) The remainder of the additional fee must be credited to the general fund.
73.21(b) All application forms prepared by the commissioner for two-wheeled vehicle
73.22endorsements must clearly state the amount of the total fee that is dedicated to the motorcycle
73.23safety fund.

73.24    Sec. 15. Minnesota Statutes 2016, section 256B.15, subdivision 1a, is amended to read:
73.25    Subd. 1a. Estates subject to claims. (a) If a person receives medical assistance hereunder,
73.26on the person's death, if single, or on the death of the survivor of a married couple, either
73.27or both of whom received medical assistance, or as otherwise provided for in this section,
73.28the amount paid for medical assistance as limited under subdivision 2 for the person and
73.29spouse shall be filed as a claim against the estate of the person or the estate of the surviving
73.30spouse in the court having jurisdiction to probate the estate or to issue a decree of descent
73.31according to sections 525.31 to 525.313.
74.1(b) For the purposes of this section, the person's estate must consist of:
74.2(1) the person's probate estate;
74.3(2) all of the person's interests or proceeds of those interests in real property the person
74.4owned as a life tenant or as a joint tenant with a right of survivorship at the time of the
74.5person's death;
74.6(3) all of the person's interests or proceeds of those interests in securities the person
74.7owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time
74.8of the person's death, to the extent the interests or proceeds of those interests become part
74.9of the probate estate under section 524.6-307;
74.10(4) all of the person's interests in joint accounts, multiple-party accounts, and pay-on-death
74.11accounts, brokerage accounts, investment accounts, or the proceeds of those accounts, as
74.12provided under sections 524.6-201 to 524.6-214 at the time of the person's death to the
74.13extent the interests become part of the probate estate under section 524.6-207; and
74.14(5) assets conveyed to a survivor, heir, or assign of the person through survivorship,
74.15living trust, transfer-on-death of title or deed, or other arrangements.
74.16(c) For the purpose of this section and recovery in a surviving spouse's estate for medical
74.17assistance paid for a predeceased spouse, the estate must consist of all of the legal title and
74.18interests the deceased individual's predeceased spouse had in jointly owned or marital
74.19property at the time of the spouse's death, as defined in subdivision 2b, and the proceeds of
74.20those interests, that passed to the deceased individual or another individual, a survivor, an
74.21heir, or an assign of the predeceased spouse through a joint tenancy, tenancy in common,
74.22survivorship, life estate, living trust, or other arrangement. A deceased recipient who, at
74.23death, owned the property jointly with the surviving spouse shall have an interest in the
74.24entire property.
74.25(d) For the purpose of recovery in a single person's estate or the estate of a survivor of
74.26a married couple, "other arrangement" includes any other means by which title to all or any
74.27part of the jointly owned or marital property or interest passed from the predeceased spouse
74.28to another including, but not limited to, transfers between spouses which are permitted,
74.29prohibited, or penalized for purposes of medical assistance.
74.30(e) A claim shall be filed if medical assistance was rendered for either or both persons
74.31under one of the following circumstances:
74.32(1) the person was over 55 years of age, and received services under this chapter prior
74.33to January 1, 2014;
75.1(2) the person resided in a medical institution for six months or longer, received services
75.2under this chapter, and, at the time of institutionalization or application for medical assistance,
75.3whichever is later, the person could not have reasonably been expected to be discharged
75.4and returned home, as certified in writing by the person's treating physician. For purposes
75.5of this section only, a "medical institution" means a skilled nursing facility, intermediate
75.6care facility, intermediate care facility for persons with developmental disabilities, nursing
75.7facility, or inpatient hospital;
75.8(3) the person received general assistance medical care services under the program
75.9formerly codified under chapter 256D; or
75.10(4) the person was 55 years of age or older and received medical assistance services on
75.11or after January 1, 2014, that consisted of nursing facility services, home and
75.12community-based services, or related hospital and prescription drug benefits.
75.13(f) The claim shall be considered an expense of the last illness of the decedent for the
75.14purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a state or
75.15county agency with a claim under this section must be a creditor under section 524.6-307.
75.16Any statute of limitations that purports to limit any county agency or the state agency, or
75.17both, to recover for medical assistance granted hereunder shall not apply to any claim made
75.18hereunder for reimbursement for any medical assistance granted hereunder. Notice of the
75.19claim shall be given to all heirs and devisees of the decedent, and to other persons with an
75.20ownership interest in the real property owned by the decedent at the time of the decedent's
75.21death, whose identity can be ascertained with reasonable diligence. The notice must include
75.22procedures and instructions for making an application for a hardship waiver under subdivision
75.235; time frames for submitting an application and determination; and information regarding
75.24appeal rights and procedures. Counties are entitled to one-half of the nonfederal share of
75.25medical assistance collections from estates that are directly attributable to county effort.
75.26Counties are entitled to ten percent of the collections for alternative care directly attributable
75.27to county effort.

75.28    Sec. 16. Minnesota Statutes 2016, section 297B.01, subdivision 16, is amended to read:
75.29    Subd. 16. Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," "sells,"
75.30"selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor
75.31vehicle, whether absolutely or conditionally, for a consideration in money or by exchange
75.32or barter for any purpose other than resale in the regular course of business.
75.33    (b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or
75.34by holding it in an effort to so lease it, and which is put to no other use by the owner other
76.1than resale after such lease or effort to lease, shall be considered property purchased for
76.2resale.
76.3    (c) The terms also shall include any transfer of title or ownership of a motor vehicle by
76.4other means, for or without consideration, except that these terms shall not include:
76.5    (1) the acquisition of a motor vehicle by inheritance from or by bequest of, or
76.6transfer-on-death of title by, a decedent who owned it;
76.7    (2) the transfer of a motor vehicle which was previously licensed in the names of two
76.8or more joint tenants and subsequently transferred without monetary consideration to one
76.9or more of the joint tenants;
76.10    (3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer
76.11licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with
76.12no monetary or other consideration or expectation of consideration and the parties to the
76.13transfer submit an affidavit to that effect at the time the title transfer is recorded;
76.14    (4) the transfer of a motor vehicle by gift between:
76.15(i) spouses;
76.16(ii) parents and a child; or
76.17(iii) grandparents and a grandchild;
76.18(5) the voluntary or involuntary transfer of a motor vehicle between a husband and wife
76.19in a divorce proceeding; or
76.20    (6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from
76.21federal income taxation under section 501(c)(3) of the Internal Revenue Code when the
76.22motor vehicle will be used exclusively for religious, charitable, or educational purposes.

76.23    Sec. 17. DRIVER'S LICENSE AGENT IN NEW BRIGHTON.
76.24(a) The commissioner of public safety must revise the appointment of the city of New
76.25Brighton as a driver's license agent to provide authority to operate as a full-service driver
76.26licensing office located in New Brighton city hall. This paragraph applies notwithstanding:
76.27(1) Minnesota Statutes, section 171.061, subdivision 2; (2) requirements under Minnesota
76.28Rules, part 7404.0300, subpart 3; and (3) procedures for county board appointment of a
76.29driver's license agent, including under Minnesota Rules, part 7404.0350. All other provisions
76.30regarding the appointment and operation of a driver's license agent under Minnesota Statutes,
76.31section 171.061, and Minnesota Rules, chapter 7404, apply.
77.1(b) The commissioner must make the appointment under this section within two weeks
77.2of receipt of an appointment application pursuant to the commissioner's procedures under
77.3Minnesota Rules.