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Capital IconMinnesota Legislature

SF 1857

as introduced - 90th Legislature (2017 - 2018) Posted on 03/14/2017 10:16am

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

Current Version - as introduced

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12.24 12.25 12.26 12.27 12.28 12.29 12.30
12.31 12.32 12.33 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20
15.21 15.22 15.23 15.24 15.25 15.26
15.27 15.28 15.29 15.30 15.31 16.1 16.2
16.3 16.4 16.5 16.6 16.7 16.8 16.9
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16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20
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17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25
17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9
18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27
18.28 18.29 18.30 18.31 18.32 18.33 19.1 19.2
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19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15
19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14
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20.29 20.30 20.31 21.1 21.2 21.3 21.4 21.5 21.6
21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 24.1 24.2 24.3 24.4 24.5
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28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14
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34.31
35.1 35.2
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43.23 43.24 43.25 43.26 43.27 43.28 43.29
43.30 43.31 43.32 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23
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47.26 47.27 47.28 47.29 47.30 48.1 48.2 48.3 48.4 48.5 48.6
48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21
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49.3 49.4
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49.29 49.30 49.31 49.32 49.33 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14
51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28
52.29 52.30
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54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28
54.29 54.30
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55.10 55.11
55.12
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55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 58.1 58.2
58.3
58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15
58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23
58.24 58.25
58.26 58.27 58.28 58.29 58.30 58.31 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 60.1 60.2 60.3 60.4 60.5 60.6 60.7
60.8 60.9 60.10 60.11 60.12 60.13 60.14
60.15 60.16
60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29
60.30
61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 64.1 64.2 64.3 64.4 64.5 64.6 64.7
64.8
64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29
64.30 64.31
64.32 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10
65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 68.1 68.2 68.3 68.4 68.5 68.6 68.7
68.8
68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20
68.21
68.22 68.23 68.24 68.25 68.26 68.27
68.28 68.29 68.30 68.31 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14
69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15
70.16
70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18
72.19 72.20 72.21 72.22 72.23
72.24
72.25 72.26 72.27 72.28 72.29 72.30 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28
73.29
74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15
74.16

A bill for an act
relating to transportation finance; amending provisions governing transportation
finance; establishing gross receipts motor fuels tax; amending vehicle registration
tax and metropolitan area transit sales tax; amending distribution of highway user
fund and state-aid funding; modifying various fees and charges; modifying fiscal
policies; requiring reports; authorizing sale and issuance of trunk highway bonds;
appropriating money; amending Minnesota Statutes 2016, sections 115A.908;
161.081, subdivision 1; 161.082, subdivision 1, by adding a subdivision; 161.083;
161.46, subdivision 2; 168.012, subdivision 1c; 168.013, subdivisions 1a, 8; 168.12,
subdivisions 1, 2, 2b, 2c, 2d, 2e, 2g, 5; 168.121, subdivision 1; 168.123, subdivision
1; 168.1235, subdivision 1; 168.1255, subdivision 1; 168.128, subdivision 2;
168.1291, subdivision 4; 168.1295, subdivision 1; 168.1296, subdivision 1;
168.1297, subdivision 1; 168.1298, subdivision 1; 168.1299, subdivision 1; 168.27,
subdivision 22; 168.31, by adding a subdivision; 168.33, subdivisions 2, 7; 168.62,
subdivision 3; 174.42, by adding a subdivision; 174.50, by adding a subdivision;
296A.061; 296A.11; 296A.12; 296A.16; 296A.18, subdivisions 2, 3, 4, 5, 6, 7;
297A.815, subdivision 3; 297A.992, subdivisions 1, 4, 5, 6; 297B.09, subdivision
1; 473.167; Laws 2014, chapter 312, article 11, section 33; proposing coding for
new law in Minnesota Statutes, chapters 161; 174; 219; 296A; 297A; repealing
Minnesota Statutes 2016, sections 161.081, subdivision 3; 473.4051, subdivision
2.

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

ARTICLE 1

TRANSPORTATION AND PUBLIC SAFETY APPROPRIATIONS

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

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

new text begin 2018
new text end
new text begin 2019
new text end
new text begin Total
new text end
new text begin General
new text end
new text begin $
new text end
new text begin 113,399,000
new text end
new text begin $
new text end
new text begin 102,079,000
new text end
new text begin $
new text end
new text begin 215,478,000
new text end
new text begin Airports
new text end
new text begin 25,109,000
new text end
new text begin 25,109,000
new text end
new text begin 50,218,000
new text end
new text begin C.S.A.H.
new text end
new text begin 771,437,000
new text end
new text begin 850,253,000
new text end
new text begin 1,621,690,000
new text end
new text begin M.S.A.S.
new text end
new text begin 210,467,000
new text end
new text begin 237,802,000
new text end
new text begin 448,269,000
new text end
new text begin Special Revenue
new text end
new text begin 121,566,000
new text end
new text begin 122,336,000
new text end
new text begin 243,902,000
new text end
new text begin H.U.T.D.
new text end
new text begin 2,426,000
new text end
new text begin 2,435,000
new text end
new text begin 4,861,000
new text end
new text begin Trunk Highway
new text end
new text begin 3,112,418,000
new text end
new text begin 2,000,895,000
new text end
new text begin 6,453,327,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 3,112,418,000
new text end
new text begin $
new text end
new text begin 3,340,909,000
new text end
new text begin $
new text end
new text begin 6,453,327,000
new text end

Sec. 2. new text beginTRANSPORTATION APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the trunk highway
fund, or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2018" and "2019" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
is fiscal years 2018 and 2019.
new text end

Sec. 3. new text beginDEPARTMENT OF
TRANSPORTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 2,887,516,000
new text end
new text begin $
new text end
new text begin 3,103,578,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2018
new text end
new text begin 2019
new text end
new text begin General
new text end
new text begin 47,973,000
new text end
new text begin 27,153,000
new text end
new text begin Airports
new text end
new text begin 25,109,000
new text end
new text begin 25,109,000
new text end
new text begin C.S.A.H.
new text end
new text begin 771,167,000
new text end
new text begin 850,253,000
new text end
new text begin M.S.A.S.
new text end
new text begin 210,467,000
new text end
new text begin 237,802,000
new text end
new text begin Special Revenue
new text end
new text begin 60,002,000
new text end
new text begin 60,002,000
new text end
new text begin Trunk Highway
new text end
new text begin 1,772,798,000
new text end
new text begin 1,903,259,000
new text end

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

new text begin Subd. 2. new text end

new text begin Multimodal Systems
new text end

new text begin (a) Aeronautics
new text end

new text begin (1) Airport Development and Assistance
new text end
new text begin 19,798,000
new text end
new text begin 19,798,000
new text end

new text begin This appropriation is from the state airports
fund and must be spent according to
Minnesota Statutes, section 360.305,
subdivision 4
.
new text end

new text begin The base appropriation for fiscal years 2020
and 2021 is $14,298,000 for each year.
new text end

new text begin Notwithstanding Minnesota Statutes, section
16A.28, subdivision 6, the amounts
appropriated in each fiscal year are available
until June 30, 2024. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin (2) Aviation Support and Services
new text end
new text begin 6,661,000
new text end
new text begin 6,661,000
new text end
new text begin Appropriations by Fund
new text end
new text begin Airports
new text end
new text begin 5,311,000
new text end
new text begin 5,311,000
new text end
new text begin Trunk Highway
new text end
new text begin 1,350,000
new text end
new text begin 1,350,000
new text end

new text begin $80,000 in each year is from the state airports
fund for the Civil Air Patrol.
new text end

new text begin (3) Airplane Purchase
new text end
new text begin 5,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is from the general fund to
be used in conjunction with proceeds of the
sale of an existing airplane for the replacement
of one state airplane.
new text end

new text begin (b) Transit
new text end
new text begin 27,543,000
new text end
new text begin 27,567,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 23,745,000
new text end
new text begin 23,745,000
new text end
new text begin Trunk Highway
new text end
new text begin 798,000
new text end
new text begin 822,000
new text end
new text begin Special Revenue
new text end
new text begin 3,000,000
new text end
new text begin 3,000,000
new text end

new text begin $100,000 in each year is from the general fund
for the administrative expenses of the
Minnesota Council on Transportation Access
under Minnesota Statutes, section 174.285.
new text end

new text begin $500,000 in each year is from the general fund
for noninfrastructure activities in the safe
routes to school program under Minnesota
Statutes, section 174.40, subdivision 7a.
new text end

new text begin The base appropriation from the general fund
for fiscal years 2020 and 2021 is $21,245,000
in each year.
new text end

new text begin $3,000,000 in each year is from the greater
Minnesota active transportation account in the
special revenue fund under Minnesota
Statutes, section 174.38. This is a onetime
appropriation.
new text end

new text begin (c) Passenger Rail
new text end
new text begin 500,000
new text end
new text begin 500,000
new text end

new text begin This appropriation is from the general fund
for passenger rail system planning, alternatives
analysis, environmental analysis, design, and
preliminary engineering under Minnesota
Statutes, sections 174.632 to 174.636.
new text end

new text begin (d) Freight
new text end
new text begin 5,300,000
new text end
new text begin 5,452,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 256,000
new text end
new text begin 256,000
new text end
new text begin Trunk Highway
new text end
new text begin 5,044,000
new text end
new text begin 5,196,000
new text end

new text begin Subd. 3. new text end

new text begin State Roads
new text end

new text begin (a) Operations and Maintenance
new text end
new text begin 284,030,000
new text end
new text begin 297,185,000
new text end
new text begin (b) Program Planning and Delivery
new text end
new text begin 249,214,000
new text end
new text begin 263,625,000
new text end

new text begin $130,000 in each year is available for
administrative costs of the targeted group
business program.
new text end

new text begin $300,000 in fiscal year 2018 is for grants to
implement enhanced organizational
effectiveness and innovation review under
article 8, section 9.
new text end

new text begin $266,000 in each year is available for grants
to metropolitan planning organizations outside
the seven-county metropolitan area.
new text end

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

new text begin $900,000 in each year is available for grants
for transportation studies outside the
metropolitan area to identify critical concerns,
problems, and issues. These grants are
available: (1) to regional development
commissions; (2) in regions where no regional
development commission is functioning, to
joint powers boards established under
agreement of two or more political
subdivisions in the region to exercise the
planning functions of a regional development
commission; and (3) in regions where no
regional development commission or joint
powers board is functioning, to the
department's district office for that region.
new text end

new text begin $1,000,000 in each year is available for
management of contaminated and regulated
material on property owned by the Department
of Transportation, including mitigation of
property conveyances, facility acquisition or
expansion, chemical release at maintenance
facilities, and spills on the trunk highway
system where there is no known responsible
party. If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.
new text end

new text begin The base appropriation for program planning
and delivery for fiscal years 2020 and 2021 is
$262,625,000 in each year.
new text end

new text begin (c) State Road Construction
new text end
new text begin 967,480,000
new text end
new text begin 1,025,905,000
new text end

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

new text begin Appropriations by Fund
new text end
new text begin Federal Highway Aid
new text end
new text begin 455,970,000
new text end
new text begin 462,570,000
new text end
new text begin Highway User Taxes
new text end
new text begin 511,510,000
new text end
new text begin 563,335,000
new text end

new text begin The commissioner of transportation shall
notify the chairs and ranking minority
members of the legislative committees with
jurisdiction over transportation finance of any
significant events that should cause these
estimates to change.
new text end

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

new text begin The base appropriation for state road
construction for fiscal years 2020 and 2021 is
$970,905,000 in each year.
new text end

new text begin $10,000,000 in each year is for the
transportation economic development program
under Minnesota Statutes, section 174.12.
new text end

new text begin $5,000,000 in the first year is for the
construction of noise barriers on trunk
highways.
new text end

new text begin The commissioner shall transfer $2,000,000
in the first year to the state right-of-way
acquisition loan account under Minnesota
Statutes, section 161.225.
new text end

new text begin The commissioner shall transfer $50,000,000
in the first year and $55,000,000 in the second
year to the county turnback account under
Minnesota Statutes, section 161.082.
new text end

new text begin The commissioner may expend up to one-half
of one percent of the federal appropriations
under this paragraph as grants to opportunity
industrialization centers and other nonprofit
job training centers for job training programs
related to highway construction.
new text end

new text begin The commissioner may transfer up to
$15,000,000 each year to the transportation
revolving loan fund.
new text end

new text begin The commissioner may receive money
covering other shares of the cost of partnership
projects. These receipts are appropriated to
the commissioner for these projects.
new text end

new text begin The commissioner may expend an amount as
necessary for land acquisition on corridors of
commerce projects funded under article 2,
section 3.
new text end

new text begin (d) Highway Debt Service
new text end
new text begin 197,519,000
new text end
new text begin 240,307,000
new text end

new text begin $188,019,000 in the first year and
$230,807,000 in the second year are for
transfer to the state bond fund. If this
appropriation is insufficient to make all
transfers required in the year for which it is
made, the commissioner of management and
budget shall notify the senate Committee on
Finance and the house of representatives
Committee on Ways and Means of the amount
of the deficiency and shall then transfer that
amount under the statutory open appropriation.
Any excess appropriation cancels to the trunk
highway fund.
new text end

new text begin (e) Electronic Communications
new text end
new text begin 5,326,000
new text end
new text begin 5,486,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 3,000
new text end
new text begin 3,000
new text end
new text begin Trunk Highway
new text end
new text begin 5,323,000
new text end
new text begin 5,483,000
new text end

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

new text begin Subd. 4. new text end

new text begin Local Roads
new text end

new text begin (a) County State-Aid Roads
new text end
new text begin 771,167,000
new text end
new text begin 850,253,000
new text end

new text begin This appropriation is from the county state-aid
highway fund under Minnesota Statutes,
section 161.081, and chapter 162.
Notwithstanding Minnesota Statutes, section
16A.28, subdivision 6, this appropriation is
available for six years after appropriation.
new text end

new text begin If the commissioner of transportation
determines that a balance remains in the
county state-aid highway fund following the
appropriations and transfers made in this
subdivision, and that the appropriations made
are insufficient for advancing county state-aid
highway projects, an amount necessary to
advance the projects, not to exceed the balance
in the county state-aid highway fund, is
appropriated in each year to the commissioner.
Within two weeks of a determination under
this contingent appropriation, the
commissioner of transportation shall notify
the commissioner of management and budget
and the chairs and ranking minority members
of the legislative committees with jurisdiction
over transportation finance concerning funds
appropriated.
new text end

new text begin (b) Municipal State-Aid Roads
new text end
new text begin 210,467,000
new text end
new text begin 237,802,000
new text end

new text begin This appropriation is from the municipal
state-aid street fund under Minnesota Statutes,
chapter 162. Notwithstanding Minnesota
Statutes, section 16A.28, subdivision 6, this
appropriation is available for six years after
appropriation.
new text end

new text begin If the commissioner of transportation
determines that a balance remains in the
municipal state-aid street fund following the
appropriations made in this subdivision, and
that the appropriations made are insufficient
for advancing municipal state-aid street
projects, an amount necessary to advance the
projects, not to exceed the balance in the
municipal state-aid street fund, is appropriated
in each year to the commissioner. Within two
weeks of a determination under this contingent
appropriation, the commissioner of
transportation shall notify the commissioner
of management and budget and the chairs and
ranking minority members of the legislative
committees with jurisdiction over
transportation finance concerning funds
appropriated.
new text end

new text begin (c) City Streets and Bridges
new text end
new text begin 57,002,000
new text end
new text begin 57,002,000
new text end

new text begin $28,501,000 in each year is appropriated from
the small city streets and bridges account in
the special revenue fund under Minnesota
Statutes, section 174.54, subdivision 1.
new text end

new text begin $28,501,000 in each year is appropriated from
the larger city streets and bridges account in
the special revenue fund under Minnesota
Statutes, section 174.54, subdivision 2.
new text end

new text begin (d) Local Bridge Replacement and Rehabilitation
new text end
new text begin 10,750,000
new text end
new text begin -0-
new text end

new text begin This appropriation is from the general fund to
match federal money and to replace or
rehabilitate local deficient bridges as provided
in Minnesota Statutes, section 174.50. To the
extent practicable, the commissioner shall
expend the funds as provided under Minnesota
Statutes, section 174.50, subdivision 6b or 6c.
This is a onetime appropriation.
new text end

new text begin (e) Pedestrian, Bicycle, and Safe Routes to
Schools
new text end
new text begin 2,500,000
new text end
new text begin 2,500,000
new text end

new text begin This appropriation is from the general fund
for infrastructure activities in the safe routes
to school program under Minnesota Statutes,
section 174.40, and grants for other bicycle
and pedestrian infrastructure that encourages
active transportation choices.
new text end

new text begin (f) Highways on Tribal Lands
new text end
new text begin 5,000,000
new text end
new text begin -0-
new text end

new text begin This appropriation is from the general fund
for the purposes of maintenance, design, or
construction of highways on tribal lands.
new text end

new text begin Subd. 5. new text end

new text begin Agency Management
new text end

new text begin (a) Agency Services
new text end
new text begin 42,722,000
new text end
new text begin 43,519,000
new text end
new text begin (b) Buildings
new text end
new text begin 18,772,000
new text end
new text begin 19,321,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 54,000
new text end
new text begin 54,000
new text end
new text begin Trunk Highway
new text end
new text begin 18,718,000
new text end
new text begin 19,267,000
new text end

new text begin Any money appropriated to the commissioner
of transportation for building construction for
any fiscal year before 2018 is available to the
commissioner of transportation during the
biennium to the extent that the commissioner
spends the money on the building construction
projects for which the money was originally
encumbered during the fiscal year for which
it was appropriated.
new text end

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

new text begin (c) Tort Claims
new text end
new text begin 600,000
new text end
new text begin 600,000
new text end

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

new text begin Subd. 6. new text end

new text begin Previous State Road Construction
Appropriations
new text end

new text begin Any money appropriated to the commissioner
of transportation for state road construction
for any fiscal year before the first year is
available to the commissioner during the
biennium to the extent that the commissioner
spends the money on the state road
construction project for which the money was
originally encumbered during the fiscal year
for which it was appropriated. The
commissioner of transportation shall report to
the commissioner of management and budget
by August 1, 2017, and August 1, 2018, on a
form the commissioner of management and
budget provides, on expenditures made during
the previous fiscal year that are authorized by
this subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Contingent Appropriation
new text end

new text begin The commissioner of transportation, with the
approval of the governor and the written
approval of at least five members of a group
consisting of the members of the Legislative
Advisory Commission under Minnesota
Statutes, section 3.30, and the ranking minority
members of the legislative committees with
jurisdiction over transportation finance, may
transfer all or part of the unappropriated
balance in the trunk highway fund to an
appropriation: (1) for trunk highway design,
construction, or inspection in order to take
advantage of an unanticipated receipt of
income to the trunk highway fund or to take
advantage of federal advanced construction
funding; (2) for trunk highway maintenance
in order to meet an emergency; or (3) to pay
tort or environmental claims. Nothing in this
subdivision authorizes the commissioner to
increase the use of federal advanced
construction funding beyond amounts
specifically authorized. Any transfer as a result
of the use of federal advanced construction
funding must include an analysis of the effects
on the long-term trunk highway fund balance.
The amount transferred is appropriated for the
purpose of the account to which it is
transferred.
new text end

Sec. 4. new text beginMETROPOLITAN COUNCIL
new text end

new text begin $
new text end
new text begin 52,249,000
new text end
new text begin $
new text end
new text begin 61,630,000
new text end

new text begin This appropriation is from the general fund
for transit system operations under Minnesota
Statutes, sections 473.371 to 473.449.
new text end

new text begin The base appropriation is $68,276,000 for
fiscal year 2020 and $74,141,000 for fiscal
year 2021.
new text end

Sec. 5. new text beginDEPARTMENT OF PUBLIC SAFETY
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 172,741,000
new text end
new text begin $
new text end
new text begin 176,071,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2018
new text end
new text begin 2019
new text end
new text begin General
new text end
new text begin 13,169,000
new text end
new text begin 13,288,000
new text end
new text begin Special Revenue
new text end
new text begin 61,564,000
new text end
new text begin 62,334,000
new text end
new text begin H.U.T.D.
new text end
new text begin 2,192,000
new text end
new text begin 2,213,000
new text end
new text begin Trunk Highway
new text end
new text begin 95,816,000
new text end
new text begin 98,236,000
new text end

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

new text begin Subd. 2. new text end

new text begin Administration and Related Services
new text end

new text begin (a) Office of Communications
new text end
new text begin 517,000
new text end
new text begin 530,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 113,000
new text end
new text begin 115,000
new text end
new text begin Trunk Highway
new text end
new text begin 404,000
new text end
new text begin 415,000
new text end
new text begin (b) Public Safety Support
new text end
new text begin 8,715,000
new text end
new text begin 8,804,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 3,662,000
new text end
new text begin 3,667,000
new text end
new text begin H.U.T.D.
new text end
new text begin 1,366,000
new text end
new text begin 1,366,000
new text end
new text begin Trunk Highway
new text end
new text begin 3,687,000
new text end
new text begin 3,771,000
new text end

new text begin $380,000 in each year is from the general fund
for payment of public safety officer survivor
benefits under Minnesota Statutes, section
299A.44. If the appropriation for either year
is insufficient, the appropriation for the other
year is available for it.
new text end

new text begin $1,367,000 in each year is from the general
fund to be deposited in the public safety
officer's benefit account. This money is
available for reimbursements under Minnesota
Statutes, section 299A.465.
new text end

new text begin $600,000 in each year is from the general fund
and $100,000 in each year is from the trunk
highway fund for soft body armor
reimbursements under Minnesota Statutes,
section 299A.38.
new text end

new text begin (c) Technology and Support Service
new text end
new text begin 3,685,000
new text end
new text begin 3,685,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 1,322,000
new text end
new text begin 1,322,000
new text end
new text begin H.U.T.D.
new text end
new text begin 19,000
new text end
new text begin 19,000
new text end
new text begin Trunk Highway
new text end
new text begin 2,344,000
new text end
new text begin 2,344,000
new text end

new text begin Subd. 3. new text end

new text begin State Patrol
new text end

new text begin (a) Patrolling Highways
new text end
new text begin 81,756,000
new text end
new text begin 83,857,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General
new text end
new text begin 37,000
new text end
new text begin 37,000
new text end
new text begin H.U.T.D.
new text end
new text begin 807,000
new text end
new text begin 828,000
new text end
new text begin Trunk Highway
new text end
new text begin 80,912,000
new text end
new text begin 82,992,000
new text end

new text begin $707,000 in the first year and $720,000 in the
second year are from the highway user tax
distribution fund for the Vehicle Crimes Unit
to investigate: (1) registration tax and motor
vehicle sales tax liabilities from individuals
and businesses that currently do not pay all
taxes owed; and (2) illegal or improper activity
related to sale, transfer, titling, and registration
of motor vehicles.
new text end

new text begin $500,000 is appropriated from the trunk
highway fund in fiscal year 2018 to assist in
the purchase of a single engine aircraft for the
State Patrol.
new text end

new text begin (b) Commercial Vehicle Enforcement
new text end
new text begin 8,023,000
new text end
new text begin 8,257,000
new text end
new text begin (c) Capitol Security
new text end
new text begin 8,035,000
new text end
new text begin 8,147,000
new text end

new text begin This appropriation is from the general fund.
new text end

new text begin The commissioner may not: (1) spend any
money from the trunk highway fund for
capitol security; or (2) permanently transfer
any state trooper from the patrolling highways
activity to capitol security.
new text end

new text begin The commissioner may not transfer any money
appropriated to the commissioner under this
section: (1) to capitol security; or (2) from
capitol security.
new text end

new text begin Subd. 4. new text end

new text begin Driver and Vehicle Services
new text end

new text begin (a) Vehicle Services
new text end
new text begin 30,027,000
new text end
new text begin 30,291,000
new text end

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

new text begin (b) Driver Services
new text end
new text begin 30,166,000
new text end
new text begin 30,655,000
new text end

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

new text begin Subd. 5. new text end

new text begin Traffic Safety
new text end

new text begin 446,000
new text end
new text begin 457,000
new text end

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

new text begin Subd. 6. new text end

new text begin Pipeline Safety
new text end

new text begin 1,371,000
new text end
new text begin 1,388,000
new text end

new text begin This appropriation is from the pipeline safety
account in the special revenue fund.
new text end

Sec. 6. new text beginDEPARTMENT OF REVENUE
new text end

new text begin $
new text end
new text begin 234,000
new text end
new text begin $
new text end
new text begin 222,000
new text end

new text begin $234,000 in fiscal year 2018 and $222,000 in
fiscal year 2019 are appropriated from the
highway user tax distribution fund to the
commissioner of revenue for tax system
management costs.
new text end

Sec. 7. new text beginTRANSFER
new text end

new text begin $
new text end
new text begin 3,000,000
new text end
new text begin $
new text end
new text begin 3,000,000
new text end

new text begin $3,000,000 in fiscal year 2018 and $3,000,000
in fiscal year 2019 are transferred from the
general fund to the greater Minnesota active
transportation account in the special revenue
fund under Minnesota Statutes, section 174.38.
These are onetime transfers.
new text end

Sec. 8. new text beginAPPROPRIATION.
new text end

new text begin (a) $8,000 in fiscal year 2018 and $8,000 in fiscal year 2019 are appropriated from the
general fund to the Legislative Coordinating Commission for expenses related to the road-user
charge working group.
new text end

new text begin (b) $165,000 in fiscal year 2018 and $95,000 in fiscal year 2019 are appropriated from
the general fund to the commissioner of transportation for administrative expenses related
to the road-user charge working group, including the costs of consultants.
new text end

ARTICLE 2

TRUNK HIGHWAY BONDING

Section 1. new text beginBOND SALE AUTHORIZATION.
new text end

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

Sec. 2. new text beginBOND APPROPRIATIONS.
new text end

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

new text begin SUMMARY
new text end
new text begin Department of Transportation
new text end
new text begin $
new text end
new text begin 1,000,000,000
new text end
new text begin Department of Management and Budget
new text end
new text begin 1,000,000
new text end
new text begin TOTAL
new text end
new text begin $
new text end
new text begin 1,001,000,000
new text end
new text begin APPROPRIATIONS
new text end

Sec. 3. new text beginDEPARTMENT OF
TRANSPORTATION CORRIDORS OF
COMMERCE
new text end

new text begin $
new text end
new text begin 800,000,000
new text end

new text begin (a) The appropriation in this section is to the
commissioner of transportation for the
corridors of commerce program under
Minnesota Statutes, section 161.088, and is
available in the amounts of $200,000,000 in
each fiscal year from 2018 to 2021. The
commissioner may use up to 17 percent of the
amount each year for program delivery.
new text end

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

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

Sec. 4. new text beginTRANSPORTATION ECONOMIC
DEVELOPMENT PROGRAM
new text end

new text begin $
new text end
new text begin 200,000,000
new text end

new text begin (a) This appropriation is for the transportation
economic development program under
Minnesota Statutes, section 174.12, and is
available in the amounts of $50,000,000 in
each fiscal year from 2018 to 2021. The
commissioner may use up to 17 percent of the
amount each year for program delivery.
new text end

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

Sec. 5. new text beginSTATE ROAD CONSTRUCTION
new text end

new text begin $
new text end
new text begin 200,000,000
new text end

new text begin (a) The appropriation in this section is to the
commissioner of transportation for the actual
construction, reconstruction, and improvement
of trunk highways, and is available in the
amounts of $50,000,000 in each fiscal year
from 2018 to 2021. The commissioner may
use up to 17 percent of the amount each year
for program delivery.
new text end

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

Sec. 6. new text beginBOND SALE EXPENSES
new text end

new text begin $
new text end
new text begin 1,200,000
new text end

new text begin This appropriation is to the commissioner of
management and budget for bond sale
expenses under Minnesota Statutes, sections
16A.641, subdivision 8, and 167.50,
subdivision 4, and is available in the amounts
of $300,000 in each fiscal year from 2018 to
2021.
new text end

Sec. 7. new text beginEFFECTIVE DATE.
new text end

new text begin This article is effective July 1, 2017.
new text end

ARTICLE 3

GROSS RECEIPTS TAX

Section 1.

Minnesota Statutes 2016, section 296A.061, is amended to read:


296A.061 CANCELLATION OR NONRENEWAL OF LICENSES.

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

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

(2) new text beginthe license holder has not filed a gross receipts tax return for at least one year;
new text end

new text begin (3) new text endthe license holder has not reported any petroleum tax liability new text beginor gross receipts tax
liability
new text endon the license holder's returns or reports for at least one year; or

deleted text begin (3)deleted text end new text begin(4) new text endthe license holder requests cancellation of the license.

Sec. 2.

new text begin [296A.085] MOTOR FUELS GROSS RECEIPTS TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Imposition. new text end

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

new text begin Subd. 2. new text end

new text begin Exemptions. new text end

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

new text begin Subd. 3. new text end

new text begin Conversion of tax rate. new text end

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

new text begin (1) 6.5 percent of $2.50; or
new text end

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

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

new text begin Subd. 4. new text end

new text begin Administrative provisions. new text end

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

new text begin Subd. 5. new text end

new text begin Deposit of revenues. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2017, and applies to gross
receipts attributable to the described products and derived by a distributor on or after that
date.
new text end

Sec. 3.

Minnesota Statutes 2016, section 296A.11, is amended to read:


296A.11 SELLER MAY COLLECT TAX.

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

Sec. 4.

Minnesota Statutes 2016, section 296A.12, is amended to read:


296A.12 GASOLINE AND SPECIAL FUEL TAX new text beginAND MOTOR FUELS GROSS
RECEIPTS TAX
new text endIN LIEU OF OTHER TAXES.

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

Sec. 5.

Minnesota Statutes 2016, section 296A.16, is amended to read:


296A.16 REFUND OR CREDIT.

Subdivision 1.

Credit or refund of gasoline or special fuel tax paid.

The commissioner
shall allow the distributor credit or refund of the new text beginexcise and motor fuels gross receipts new text endtax
paid on gasoline and special fuel:

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

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

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

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

(5) in error;

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

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

Subd. 2.

Fuel used in other vehicle; claim for refund.

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

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

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

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

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

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

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

Subd. 3.

Destruction by accident; refund to dealer.

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

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

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

Subd. 4.

Refrigerator units; refunds.

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

Subd. 4a.

Undyed kerosene; refunds.

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

Subd. 4b.

Racing gasoline; refunds.

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

Subd. 5.

Qualifying service station credit.

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

Subd. 7.

Civil penalty for filing false claim.

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

Subd. 8.

Appropriation.

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

Sec. 6.

Minnesota Statutes 2016, section 296A.18, subdivision 2, is amended to read:


Subd. 2.

Motorboat.

Approximately 1-1/2 percent of all gasoline received in this state
and 1-1/2 percent of all gasoline produced or brought into this state, except gasoline used
for aviation purposes, is being used as fuel for the operation of motorboats on the waters
of this state and of the total revenue derived from the imposition of the gasoline fuel tax
new text begin and motor fuels gross receipts tax on gasoline new text endfor uses other than for aviation purposes,
1-1/2 percent of the revenue is the amount of tax on fuel used in motorboats operated on
the waters of this state. The amount of unrefunded tax paid on gasoline used for motor boat
purposes as computed in this chapter shall be paid into the state treasury and credited to a
water recreation account in the special revenue fund for acquisition, development,
maintenance, and rehabilitation of sites for public access and boating facilities on public
waters; lake and river improvement; and boat and water safety.

Sec. 7.

Minnesota Statutes 2016, section 296A.18, subdivision 3, is amended to read:


Subd. 3.

Snowmobile.

Approximately one percent of all gasoline received in and
produced or brought into this state, except gasoline used for aviation purposes, is being used
as fuel for the operation of snowmobiles in this state, and of the total revenue derived from
the imposition of the gasoline fuel tax new text beginand motor fuels gross receipts tax on gasoline new text endfor
uses other than for aviation purposes, one percent of such revenues is the amount of tax on
fuel used in snowmobiles operated in this state.

Sec. 8.

Minnesota Statutes 2016, section 296A.18, subdivision 4, is amended to read:


Subd. 4.

All-terrain vehicle.

Approximately 0.27 of one percent of all gasoline received
in or produced or brought into this state, except gasoline used for aviation purposes, is being
used for the operation of all-terrain vehicles in this state, and of the total revenue derived
from the imposition of the gasoline fuel taxnew text begin and motor fuels gross receipts tax on gasolinenew text end,
0.27 of one percent is the amount of tax on fuel used in all-terrain vehicles operated in this
state.

Sec. 9.

Minnesota Statutes 2016, section 296A.18, subdivision 5, is amended to read:


Subd. 5.

Off-highway motorcycles.

Approximately 0.046 of one percent of all gasoline
received or produced in or brought into this state, except gasoline used for aviation purposes,
is being used for the operation of off-highway motorcycles in this state, and of the total
revenue derived from the imposition of the gasoline fuel taxnew text begin and motor fuels gross receipts
tax on gasoline
new text end for uses other than for aviation purposes, 0.046 of one percent is the amount
of tax on fuel used in off-highway motorcycles operated in this state.

Sec. 10.

Minnesota Statutes 2016, section 296A.18, subdivision 6, is amended to read:


Subd. 6.

Off-road vehicle.

Approximately 0.164 of one percent of all gasoline received
or produced in or brought into this state, except gasoline used for aviation purposes, is being
used for the off-road operation of off-road vehicles, as defined in section 84.797, in this
state, and of the total revenue derived from the imposition of the gasoline fuel tax new text beginand motor
fuels gross receipts tax on gasoline
new text endfor uses other than aviation purposes, 0.164 of one
percent is the amount of tax on fuel used for off-road operation of off-road vehicles in this
state.

Sec. 11.

Minnesota Statutes 2016, section 296A.18, subdivision 7, is amended to read:


Subd. 7.

Forest road.

Approximately 0.116 percent of the total annual unrefunded
revenue from the gasoline fuel tax new text beginand motor fuels gross receipts tax on gasoline new text endon all
gasoline and special fuel received in, produced, or brought into this state, except gasoline
and special fuel used for aviation purposes, is derived from the operation of motor vehicles
on state forest roads and county forest access roads. This revenue, together with interest
and penalties for delinquency in payment, paid or collected pursuant to the provisions of
this chapter, is appropriated from the highway user tax distribution fund and must be
transferred and credited in equal installments on July 1 and January 1 to the state forest road
account established in section 89.70. Of this amount, 0.0605 percent is annually derived
from motor vehicles operated on state forest roads and 0.0555 percent is annually derived
from motor vehicles operated on county forest access roads in this state. An amount equal
to 0.0555 percent of the unrefunded revenue must be annually transferred to counties for
the management and maintenance of county forest roads.

Sec. 12. new text beginREVISOR'S INSTRUCTION.
new text end

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

ARTICLE 4

VEHICLE REGISTRATION TAX

Section 1.

Minnesota Statutes 2016, section 168.013, subdivision 1a, is amended to read:


Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined in
section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax shall be
new text begin an amount equal to a combination of the following: new text end$10 new text beginfor those vehicles with registration
periods beginning on or before June 30, 2020; and $20 for those vehicles with registration
periods on or after July 1, 2020,
new text endplus an additional tax equal to deleted text begin1.25deleted text endnew text begin a percentage of 1.5new text end
percent of the base valuenew text begin as specified in paragraph (h)new text end.

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

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

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

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

FROM
TO
$
0
$ 199.99
$
200
$ 399.99

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

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

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

(h) The annual additional tax must be computed upon deleted text beginadeleted text end new text beginthe specified new text endpercentage of new text begin1.5
percent of
new text endthe base value as follows: during the first year of vehicle life, upon 100 percent
deleted text begin of the base valuedeleted text end; for the second year, 90 percent deleted text beginof such valuedeleted text end; for the third year, 80 percent
deleted text begin of such valuedeleted text end; for the fourth year, 70 percent deleted text beginof such valuedeleted text end; for the fifth year, 60 percent deleted text beginof
such value
deleted text end; for the sixth year, 50 percent deleted text beginof such valuedeleted text end; for the seventh year, 40 percent deleted text beginof
such value
deleted text end; for the eighth year, 30 percent deleted text beginof such valuedeleted text end; for the ninth year, 20 percent deleted text beginof
such value
deleted text end; for the tenth year, ten percent deleted text beginof such valuedeleted text end; for the 11th and each succeeding
year, the sum of $25.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to any tax for a registration period that begins on or after September 1, 2017.
new text end

ARTICLE 5

METROPOLITAN TRANSIT IMPROVEMENT AREA SALES TAX

Section 1.

Minnesota Statutes 2016, section 297A.992, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

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

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

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

(3) deleted text begin"committee" means the Grant Evaluation and Ranking System (GEARS) Committee;
deleted text end

deleted text begin (4)deleted text end "minimum guarantee county" means any metropolitan county or eligible county that
is participating in the joint powers agreement under subdivision 3, whose proportion of the
annual sales tax revenue under this section collected within that county is less than or equal
to three percentdeleted text begin; anddeleted text endnew text begin.
new text end

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

Sec. 2.

Minnesota Statutes 2016, section 297A.992, subdivision 4, is amended to read:


Subd. 4.

Joint powers board.

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

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

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

Sec. 3.

Minnesota Statutes 2016, section 297A.992, subdivision 5, is amended to read:


Subd. 5.

Grant application and awardsdeleted text begin; Grant Evaluation and Ranking System
(GEARS) Committee
deleted text end.

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

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

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

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

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

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

deleted text begin (4) the chair of the Metropolitan Council Transportation Committee.
deleted text end

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

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

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

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

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

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

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

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

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

deleted text begin (j)deleted text endnew text begin (e)new text end Nothing in deleted text beginparagraph (h) or (i)deleted text endnew text begin this sectionnew text end prevents grant awards to the
Metropolitan Council for capital and operating assistance for transitways and park-and-ride
facilities.

Sec. 4.

Minnesota Statutes 2016, section 297A.992, subdivision 6, is amended to read:


Subd. 6.

Allocation new text beginand use new text endof grant awards.

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

(i) capital improvements to transitways, including, but not limited to, commuter rail
rolling stock, light rail vehicles, and transitway buses;

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

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

(iv) operating assistance for transitways.

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

new text begin (c) The joint powers board must, over the duration of the Metropolitan Council's 2030
plan, establish a goal of awarding grants in an amount totaling no less than 40 percent of
sales tax revenue collected for the year for projects in Dakota, Ramsey, or Washington
County.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to grant awards for calendar year 2018 and thereafter.
new text end

Sec. 5.

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

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the
meanings given:
new text end

new text begin (1) "metropolitan transit improvement area" or "area" means the counties of Anoka,
Carver, Dakota, Hennepin, Ramsey, Scott, and Washington;
new text end

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

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

new text begin Subd. 2. new text end

new text begin Metropolitan transit improvement area transit sales tax imposition; rate.
new text end

new text begin (a) Notwithstanding section 297A.99, subdivisions 1, 2, and 3; 477A.016; or any other law,
and subject to the approval requirements in paragraph (c) and the alternative rate provision
in paragraph (d), a metropolitan area transit sales and use tax is imposed at a rate of
three-quarters of one percent on retail sales and uses taxable under this chapter occurring
within the metropolitan transit improvement area.
new text end

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

new text begin (c) The tax imposed under paragraph (a) is imposed on all counties in the metropolitan
transit improvement area, except that if the governing boards of at least four counties in the
area vote to opt out of the tax before June 15, 2017, the tax is not imposed in the counties
in which the governing board has voted to opt out of the tax. If the governing boards of
fewer than four counties in the area vote to opt out of the tax, then the tax is imposed on all
counties in the area.
new text end

new text begin (d) The rate at which the metropolitan area transit sales and use tax is imposed in each
county will be reduced by the rate of a greater Minnesota transportation sales and use tax
imposed by that county under section 297A.993.
new text end

new text begin Subd. 3. new text end

new text begin Administration; collection; enforcement. new text end

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

new text begin Subd. 4. new text end

new text begin Distribution of net revenues. new text end

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

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

new text begin (2) to the Metropolitan Council, the remaining proceeds.
new text end

new text begin Subd. 5. new text end

new text begin General purpose; consistency with transportation policy plan. new text end

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

new text begin (b) Projects funded with the metropolitan transit improvement area transit sales and use
tax proceeds must not be inconsistent with the long-range transportation policy plan adopted
by the council under section 473.146 and located within the transit improvement area.
new text end

new text begin Subd. 6. new text end

new text begin Priorities. new text end

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

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

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

new text begin (3) as otherwise authorized under subdivision 7.
new text end

new text begin Subd. 7. new text end

new text begin Use of tax proceeds. new text end

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

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

new text begin (2) 100 percent of the net operating costs of arterial bus rapid transit lines in operation
on September 30, 2017, and 50 percent of the net operating costs of other transitways;
new text end

new text begin (3) grants required under paragraph (b);
new text end

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

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

new text begin (ii) development of arterial bus rapid transit, transitways, and streetcar systems; and
new text end

new text begin (iii) maintenance of affordable transit fares;
new text end

new text begin (5) operating and capital costs for expansion and improvement of regional transitways
and streetcars;
new text end

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

new text begin (7) as grants in the annual amount of $390,000, payable by July 31, to transportation
management organizations that provide services exclusively or primarily in (i) each city of
the first class, as provided under section 410.01; and (ii) the city having the highest population
as of the effective date of this section located along the marked Interstate Highway 494
corridor. Permissible uses include administrative expenses and programming and service
expansion, including but not limited to staffing, communications, outreach and education
program development, and operations management;
new text end

new text begin (8) for financial assistance to replacement service providers under section 473.388 in
the amount of $1,500,000 in fiscal year 2018 and $1,500,000 in fiscal year 2019, to
implement a demonstration project that provides regular route transit or express bus service
between municipalities in the metropolitan transportation improvement area, excluding
cities of the first class. The council shall allocate the appropriated funds as directed by the
replacement service providers who shall collectively identify one or more demonstration
projects for financial assistance under this section and submit a notification of the allocation
to the Metropolitan Council. Criteria for evaluating and identifying demonstration projects
must include but are not limited to:
new text end

new text begin (i) scope of service offering improvements;
new text end

new text begin (ii) integration with transit facilities and major business, retail, or suburban centers;
new text end

new text begin (iii) extent to which a proposed route complements existing transit service; and
new text end

new text begin (iv) density of employment along a proposed route;
new text end

new text begin (9) to the Center for Transportation Studies, University of Minnesota, $500,000 annually
for research to improve accessibility, operational efficiency, and safety of transit systems;
new text end

new text begin (10) $5,000,000 for improvements to transit shelters or new shelters consistent with
section 473.41, to be located in areas most in need of new or improved shelters;
new text end

new text begin (11) to establish a transit training center to assist individuals in learning how to ride the
bus or light rail; and
new text end

new text begin (12) any other costs payable in accordance with subdivisions 5, 6, and 7, which may
include, but are not limited to, transit operations, capital improvements, design, engineering
and environmental work, acquisition of real property, and transit planning and feasibility
studies, and to provide grants to local governmental units for transit purposes, including
streetcars, or for bicycle and pedestrian projects.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
September 30, 2017, and applies in the counties of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington, except that subdivision 2, paragraph (c), is effective the
day following final enactment.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 473.4051, subdivision 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

ARTICLE 6

OTHER TAXES, FEES, AND TRANSFERS

Section 1.

Minnesota Statutes 2016, section 115A.908, is amended to read:


115A.908 MOTOR VEHICLE TRANSFER FEE.

Subdivision 1.

Fee charged.

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

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

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

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

new text begin (b) A surcharge of $10 is imposed on each fee charged under paragraph (a).
new text end

Subd. 2.

Deposit of revenue.

new text begin(a) Fee new text endrevenue collected under this section shall be credited
to the environmental fund.

new text begin (b) The commissioner of transportation shall deposit the proceeds of the surcharge as
follows:
new text end

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

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

Sec. 2.

Minnesota Statutes 2016, section 161.081, subdivision 1, is amended to read:


Subdivision 1.

Distribution of five percent.

deleted text begin(a)deleted text end Pursuant to article 14, section 5, of the
Constitution, five percent of the net highway user tax distribution fund is set aside, and
apportioned deleted text beginto the county state-aid highway fund.deleted text endnew text begin as follows:
new text end

deleted text begin (b) That apportionment is further distributed as follows:
deleted text end

deleted text begin (1) 30.5 percent to the town road account created in section 162.081;
deleted text end

deleted text begin (2) 16 percent to the town bridge account, which is created in the state treasurydeleted text endnew text begin (1) 56.5
percent to the county state-aid highway fund, consisting of: (i) 30.5 percent to the town road
account created in section 162.081; (ii) 16 percent to the town bridge account created in the
state treasury; and (iii) ten percent to the county municipal accounts for purposes described
in section 162.08
new text end; and

deleted text begin (3) 53.5 percent to the flexible highway account created in subdivision 3deleted text endnew text begin (2) 43.5 percent
to the municipal state-aid street fund
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 161.082, subdivision 1, is amended to read:


Subdivision 1.

new text beginCreation of account; new text endrules.

new text begin (a) The county turnback account is created
in the state treasury, consisting of money allotted or appropriated to the account from the
trunk highway fund or from any other source that will be used for the restoration of trunk
highways that have reverted or that will revert to counties.
new text end

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

new text begin (c) The legislature finds that restoration of trunk highways that have reverted or will
revert to counties is a trunk highway purpose within the meaning of the Minnesota
Constitution, article XIV, section 2.
new text end

Sec. 4.

Minnesota Statutes 2016, section 161.082, is amended by adding a subdivision to
read:


new text begin Subd. 1a. new text end

new text begin Budget submission. new text end

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

Sec. 5.

Minnesota Statutes 2016, section 161.083, is amended to read:


161.083 MUNICIPAL TURNBACK ACCOUNT, EXPENDITURE.

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin (a) The municipal turnback account is created in
the state treasury, consisting of money allotted or appropriated to the account from the trunk
highway fund or from any other source that will be used for the restoration of trunk highways
that have reverted or that will revert to cities.
new text end

new text begin (b) new text endExcept as deleted text beginhereinafterdeleted text end providednew text begin in this sectionnew text end, all money accruing to the municipal
turnback account shall be expended in accordance with rules of the commissioner of
transportation in paying a municipality having a population of 5,000 or more for the
reconstruction and improvement of former trunk highways, or portions thereof, that have
reverted to such municipality in accordance with law, and have become a part of the
municipal state-aid street system.

new text begin (c) The legislature finds that restoration of trunk highways that have reverted or will
revert to cities is a trunk highway purpose within the meaning of the Minnesota Constitution,
article XIV, section 2.
new text end

new text begin Subd. 2. new text end

new text begin Biennial budget submission. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 168.012, subdivision 1c, is amended to read:


Subd. 1c.

Payment of administrative, plate, and filing fee.

The annual administrative
fee for a tax-exempt vehicle under this section is $5. The license plate fee for a tax-exempt
vehicle, except a trailer, is deleted text begin$10deleted text end new text begin$12.50 new text endfor two plates per vehicle, payable only on the first
tax-exempt registration of the vehicle. The registration period for a tax-exempt vehicle is
biennial. The administrative fee is due on March 1 biennially and payable the preceding
January 1, with validating stickers issued at time of payment.

Sec. 7.

Minnesota Statutes 2016, section 168.12, subdivision 2, is amended to read:


Subd. 2.

Amateur radio licensee; special plates, rules.

(a) The commissioner shall
issue amateur radio plates to an applicant who:

(1) is an owner of a passenger automobile or recreational vehicle;

(2) is a resident of this state;

(3) holds an official amateur radio station license or a citizens radio service class D
license, in good standing, issued by the Federal Communications Commission;

(4) pays the registration tax required under section 168.013;

(5) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endfor each set of special plates and any other fees required
by this chapter; and

(6) complies with this chapter and rules governing the registration of motor vehicles and
licensing of drivers;

(b) In lieu of the registration number required for identification under subdivision 1, the
plates must indicate the official amateur call letters of the applicant, as assigned by the
Federal Communications Commission, and the words "AMATEUR RADIO."

(c) This provision for the issue of special plates applies only if the applicant's motor
vehicle is already registered in Minnesota so that the applicant has valid regular Minnesota
plates issued for that motor vehicle under which to operate it during the time that it will
take to have the necessary special plates made.

(d) If owning more than one motor vehicle of the type specified in this subdivision, the
applicant may apply for special plates for each motor vehicle and, if each application
complies with this subdivision, the commissioner shall furnish the applicant with the special
plates, indicating the official amateur call letters and other distinguishing information as
the commissioner considers necessary, for each of the motor vehicles.

(e) The commissioner may make reasonable rules governing the use of the special plates
as will assure the full compliance by the owner of the special plates, with all existing laws
governing the registration of motor vehicles and the transfer and use of the plates.

(f) Despite any contrary provision of subdivision 1, the special plates issued under this
subdivision may be transferred by an owner to another motor vehicle listed in paragraph
(a) and registered to the same owner, upon the payment of a fee of $5. The commissioner
must be notified before the transfer and may prescribe a format for the notification.

Sec. 8.

Minnesota Statutes 2016, section 168.12, subdivision 2b, is amended to read:


Subd. 2b.

Firefighters; special plates, rules.

(a) The commissioner shall issue special
plates, or a single license plate in the case of a motorcycle plate, to any applicant who:

(1) is a member of a fire department receiving state aid under chapter 69, has a letter
from the fire chief, and is an owner of a passenger automobile, a one-ton pickup truck, or
a motorcycle;

(2) pays a fee of deleted text begin$10deleted text endnew text begin $12.50new text end and any other fees required by this chapter;

(3) pays the registration tax required by this chapter for the motor vehicle; and

(4) complies with this chapter and rules governing the registration of motor vehicles and
licensing of drivers.

(b) In lieu of the identification required under subdivision 1, the special plates must bear
an emblem of a Maltese Cross together with any numbers or characters prescribed by the
commissioner.

(c) Special plates issued under this subdivision may only be used during the period that
the owner of the motor vehicle is a member of a fire department as specified in this
subdivision. When the individual to whom the special plates were issued is no longer a
member of a fire department or when the motor vehicle ownership is transferred, the owner
shall remove the special plates from the motor vehicle. If the commissioner receives written
notification that an individual is no longer qualified for these special plates, the commissioner
shall invalidate the plates and notify the individual of this action. The individual may retain
the plate only upon demonstrating compliance with the qualifications of this subdivision.
Upon removal or invalidation of the special plates or special motorcycle plate, the owner
or purchaser of the motor vehicle shall obtain regular plates, a regular motorcycle plate, or
special plates for the proper registration classification for the motor vehicle.

(d) A special motorcycle license plate issued under this subdivision must be the same
size as a standard motorcycle license plate.

(e) Upon payment of a fee of $5, plates issued under this subdivision for a passenger
automobile or truck may be transferred to another passenger automobile or truck owned or
jointly owned by the person to whom the plates were issued. On payment of a fee of $5, a
plate issued under this subdivision for a motorcycle may be transferred to another motorcycle
owned or jointly owned by the person to whom the plate was issued.

(f) The commissioner may adopt rules under the Administrative Procedure Act, sections
14.001 to 14.69, to govern the issuance and use of the special plates authorized in this
subdivision.

Sec. 9.

Minnesota Statutes 2016, section 168.12, subdivision 2c, is amended to read:


Subd. 2c.

National Guard; special plates, rules.

(a) The commissioner shall issue
special plates to any applicant who:

(1) is a regularly enlisted, commissioned, or retired member of the Minnesota National
Guard, other than an inactive member who is not a retired member, and is an owner of a
passenger automobile;

(2) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endand any other fees required by this chapter;

(3) pays the registration tax required by this chapter; and

(4) complies with this chapter and rules governing the registration of motor vehicles and
licensing of drivers.

(b) The adjutant general shall design the emblem for these special plates subject to the
approval of the commissioner.

(c) Special plates issued under this subdivision may only be used during the period that
the owner of the motor vehicle is an active or retired member of the Minnesota National
Guard as specified in this subdivision. When the individual to whom the special plates were
issued is no longer an active or retired member of the Minnesota National Guard, the special
plates must be removed from the vehicle by the owner. If the commissioner receives written
notification that an individual is no longer qualified for these special plates, the commissioner
shall invalidate the plates and notify the individual of this action. The individual may retain
the plate only upon demonstrating compliance with the qualifications of this subdivision.
Upon removal or invalidation of the special plates, either the owner or purchaser of the
motor vehicle shall obtain regular plates for the motor vehicle.

(d) While the person is an active or retired member of the Minnesota National Guard,
plates issued pursuant to this subdivision may be transferred to another motor vehicle owned
by that individual upon payment of a fee of $5.

(e) For purposes of this subdivision, "retired member" means an individual placed on
the roll of retired officers or roll of retired enlisted members in the Office of the Adjutant
General under section 192.18 and who is not deceased.

(f) The commissioner may adopt rules under the Administrative Procedure Act to govern
the issuance and use of the special plates authorized by this subdivision.

Sec. 10.

Minnesota Statutes 2016, section 168.12, subdivision 2d, is amended to read:


Subd. 2d.

Ready Reserve; special plates, rules.

(a) The commissioner shall issue special
plates to an applicant who:

(1) is not eligible for special National Guard plates under subdivision 2c, is a member
of the United States armed forces ready reserve as described in United States Code, title
10, section 10142 or 10143, or a retired reserve as described in United States Code, title
10, section 10154, and is an owner of a passenger automobile;

(2) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endand any other fees required by this chapter;

(3) pays the registration tax required by this chapter; and

(4) complies with this chapter and rules governing the registration of motor vehicles and
licensing of drivers.

(b) The commissioner of veterans affairs shall design the emblem for these special plates
subject to the approval of the commissioner.

(c) Special plates issued under this subdivision may only be used during the period that
the owner of the motor vehicle is a member of the ready reserve. When the owner is no
longer a member, the special plates must be removed from the motor vehicle by the owner.
If the commissioner receives written notification that an individual is no longer qualified
for these special plates, the commissioner shall invalidate the plates and notify the individual
of this action. The individual may retain the plate only upon demonstrating compliance with
the qualifications of this subdivision. On removal or invalidation of the special plates, either
the owner or purchaser of the motor vehicle shall obtain regular plates for the motor vehicle.
While the owner is a member of the ready reserve, plates issued under this subdivision may
be transferred to another motor vehicle owned by that individual on paying a fee of $5.

(d) The commissioner may adopt rules under the Administrative Procedure Act to govern
the issuance and use of the special plates authorized by this subdivision.

Sec. 11.

Minnesota Statutes 2016, section 168.12, subdivision 2e, is amended to read:


Subd. 2e.

Volunteer ambulance attendants; special plates.

(a) The commissioner shall
issue special license plates to an applicant who:

(1) is a volunteer ambulance attendant as defined in section 144E.001, subdivision 15,
and owns a motor vehicle taxed as a passenger automobile;

(2) pays the registration tax required by this chapter for the motor vehicle;

(3) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endand any other fees required by this chapter; and

(4) complies with this chapter and rules governing the registration of motor vehicles and
licensing of drivers.

(b) An individual may use special plates issued under this subdivision only during the
period that the individual is a volunteer ambulance attendant. When the individual to whom
the special plates were issued ceases to be a volunteer ambulance attendant, the individual
shall remove each set of special plates issued. If the commissioner receives written
notification that an individual is no longer qualified for these special plates, the commissioner
shall invalidate the plates and notify the individual of this action. The individual may retain
the plate only upon demonstrating compliance with the qualifications of this subdivision.
When ownership of the motor vehicle is transferred, the individual shall remove the special
plates from that motor vehicle. On removal or invalidation of the special plates, the owner
or purchaser of the motor vehicle shall obtain regular plates for the motor vehicle. Special
plates issued under this subdivision may be transferred to another motor vehicle owned by
the volunteer ambulance attendant on payment of a fee of $5.

(c) The commissioner may adopt rules governing the design, issuance, and sale of the
special plates authorized by this subdivision.

Sec. 12.

Minnesota Statutes 2016, section 168.12, subdivision 2g, is amended to read:


Subd. 2g.

Retired firefighters; special plates.

(a) The commissioner shall issue special
retired firefighters plates to an applicant who:

(1) is a retired member of a fire department as defined in section 299N.01, subdivision
2, has a letter from the fire chief affirming that the applicant is a retired firefighter who
served ten or more years and separated in good standing, and is a registered owner of a
passenger automobile, a one-ton pickup truck, a recreational vehicle, or a motorcycle;

(2) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endfor each set of license plates applied for along with any
other fees required by this chapter; and

(3) complies with this chapter and rules governing registration of motor vehicles and
licensing of drivers.

(b) The commissioner shall design the special plate emblem so that it is distinguishable
from the emblem on firefighter special plates issued under subdivision 2b.

(c) On payment of a transfer fee of $5, plates issued under this subdivision may be
transferred to another passenger automobile, one-ton pickup truck, recreational vehicle, or
motorcycle registered to the individual to whom the special plates were issued.

(d) Fees collected under this subdivision must be credited to the vehicle services operating
account in the special revenue fund.

(e) This subdivision is exempt from section 168.1293.

Sec. 13.

Minnesota Statutes 2016, section 168.12, subdivision 5, is amended to read:


Subd. 5.

Additional fee.

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

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

License Plate
Single
Double
Regular and Disability
$
deleted text begin 4.50 deleted text end new text begin 6.25
new text end
$
deleted text begin 6.00 deleted text end new text begin 12.50
new text end
Special
$
8.50
$
deleted text begin 10.00deleted text end
new text begin12.50
new text end
Personalized (Replacement)
$
10.00
$
14.00
Collector Category
$
13.50
$
15.00
Emergency Vehicle Display
$
deleted text begin 3.00 deleted text end new text begin 6.25
new text end
$
deleted text begin 6.00 deleted text end new text begin 12.50
new text end
Utility Trailer Self-Adhesive
$
2.50
Vertical Motorcycle Plate
$
100.00
NA
Stickers
Duplicate year
$
1.00
$
1.00
International Fuel Tax Agreement
$
2.50

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

Sec. 14.

Minnesota Statutes 2016, section 168.121, subdivision 1, is amended to read:


Subdivision 1.

Issuance and design.

Notwithstanding section 168.1293, the commissioner
shall issue special plates remembering victims of impaired drivers to an applicant who:

(1) is a registered owner of a passenger automobile;

(2) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endfor each set of license plates applied for; and

(3) complies with this chapter and rules governing registration of motor vehicles and
licensing of drivers.

Sec. 15.

Minnesota Statutes 2016, section 168.123, subdivision 1, is amended to read:


Subdivision 1.

General requirements; fees.

(a) On payment of a fee of deleted text begin$10deleted text end new text begin$12.50 new text endfor
each set of two plates, or for a single plate in the case of a motorcycle plate, payment of the
registration tax required by law, and compliance with other applicable laws relating to
vehicle registration and licensing, as applicable, the commissioner shall issue:

(1) special veteran's plates to an applicant who served in the active military service in a
branch of the armed forces of the United States or of a nation or society allied with the
United States in conducting a foreign war, was discharged under honorable conditions, and
is a registered owner of a passenger automobile, recreational motor vehicle, or one-ton
pickup truck, but which is not a commercial motor vehicle as defined in section 169.011,
subdivision 16
; or

(2) a veteran's special motorcycle plate as described in subdivision 2, paragraph (a), (e),
(f), (h), (i), (j), or (m), or another special plate designed by the commissioner to an applicant
who is a registered owner of a motorcycle and meets the criteria listed in this paragraph and
in subdivision 2, paragraph (a), (e), (f), (h), (i), (j), or (m). Plates issued under this clause
must be the same size as regular motorcycle plates. Special motorcycle license plates issued
under this clause are not subject to section 168.1293.

(b) The additional fee of deleted text begin$10deleted text end new text begin$12.50 new text endis payable for each set of veteran's plates, is payable
only when the plates are issued, and is not payable in a year in which stickers are issued
instead of plates.

(c) The veteran must have a certified copy of the veteran's discharge papers, indicating
character of discharge, at the time of application. If an applicant served in the active military
service in a branch of the armed forces of a nation or society allied with the United States
in conducting a foreign war and is unable to obtain a record of that service and discharge
status, the commissioner of veterans affairs may certify the applicant as qualified for the
veterans' plates provided under this section.

Sec. 16.

Minnesota Statutes 2016, section 168.1235, subdivision 1, is amended to read:


Subdivision 1.

General requirements; fees.

(a) The commissioner shall issue a special
plate emblem for each plate to an applicant who:

(1) is a member of a congressionally chartered veterans service organization and is a
registered owner of a passenger automobile, pickup truck, van, or self-propelled recreational
vehicle;

(2) pays the registration tax required by law;

(3) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endfor each set of two plates, and any other fees required by
this chapter; and

(4) complies with this chapter and rules governing the registration of motor vehicles and
licensing of drivers.

(b) The additional fee of deleted text begin$10deleted text end new text begin$12.50 new text endis payable at the time of initial application for the
special plate emblem and when the plates must be replaced or renewed. An applicant must
not be issued more than two sets of special plate emblems for motor vehicles listed in
paragraph (a) and registered to the applicant.

(c) The applicant must present a valid card indicating membership in the American
Legion or Veterans of Foreign Wars.

Sec. 17.

Minnesota Statutes 2016, section 168.1255, subdivision 1, is amended to read:


Subdivision 1.

General requirements and procedures.

The commissioner shall issue
special veteran contribution plates or a single motorcycle plate to an applicant who:

(1) is a veteran, as defined in section 197.447;

(2) is a registered owner of a passenger automobile as defined in section 168.002,
subdivision 24, recreational vehicle as defined in section 168.002, subdivision 27, one-ton
pickup truck as defined in section 168.002, subdivision 21b, or motorcycle as defined in
section 168.002, subdivision 19;

(3) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endto cover the costs of handling and manufacturing the plates;

(4) pays the registration tax required under section 168.013;

(5) pays the fees required under this chapter;

(6) pays an additional onetime World War II memorial contribution of $30, which the
department shall retain until all start-up costs associated with the development and issuing
of the plates have been recovered, after which the commissioner shall deposit contributions
in the World War II donation match account; and

(7) complies with this chapter and rules governing the registration of motor vehicles and
licensing of drivers.

Sec. 18.

Minnesota Statutes 2016, section 168.128, subdivision 2, is amended to read:


Subd. 2.

Plates.

(a) A person who operates a limousine for other than personal use shall
register the motor vehicle as provided in this section. A person who operates a limousine
for personal use may apply for limousine plates.

(b) The commissioner shall issue limousine plates to the registered owner of a limousine
who:

(1) certifies that an insurance policy or policies under section 65B.135, in the minimum
aggregate amount required under that section, is in effect for the entire period of the
registration;

(2) provides the commissioner with proof that the passenger automobile registration tax
and a deleted text begin$10deleted text end new text begin$12.50 new text endfee have been paid for each limousine receiving limousine plates; and

(3) complies with this chapter and rules governing the registration of motor vehicles and
licensing of drivers.

(c) The limousine plates must be designed to specifically identify the vehicle as a
limousine and must be clearly marked with the letters "LM." Limousine plates may not be
transferred upon sale of the limousine, but may be transferred to another limousine owned
by the same person upon notifying the commissioner and paying a $5 transfer fee.

Sec. 19.

Minnesota Statutes 2016, section 168.1291, subdivision 4, is amended to read:


Subd. 4.

Fees.

Despite section 168.12, subdivisions 2b to 2e; 168.123; or 168.129, the
commissioner shall charge a fee of deleted text begin$10deleted text end new text begin$12.50 new text endfor each set of plates issued under this section.

Sec. 20.

Minnesota Statutes 2016, section 168.1295, subdivision 1, is amended to read:


Subdivision 1.

General requirements and procedures.

(a) The commissioner shall
issue state parks and trails plates to an applicant who:

(1) is a registered owner of a passenger automobile, recreational vehicle, one ton pickup
truck, or motorcycle;

(2) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endto cover the costs of handling and manufacturing the plates;

(3) pays the registration tax required under section 168.013;

(4) pays the fees required under this chapter;

(5) contributes a minimum of $50 annually to the state parks and trails donation account
established in section 85.056; and

(6) complies with this chapter and rules governing registration of motor vehicles and
licensing of drivers.

(b) The state parks and trails plate application must indicate that the contribution specified
under paragraph (a), clause (5), is a minimum contribution to receive the plate and that the
applicant may make an additional contribution to the account.

(c) State parks and trails plates may be personalized according to section 168.12,
subdivision 2a.

Sec. 21.

Minnesota Statutes 2016, section 168.1296, subdivision 1, is amended to read:


Subdivision 1.

General requirements and procedures.

(a) The commissioner shall
issue critical habitat plates to an applicant who:

(1) is a registered owner of a passenger automobile or recreational vehicle;

(2) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endto cover the costs of handling and manufacturing the plates;

(3) pays the registration tax required under section 168.013;

(4) pays the fees required under this chapter;

(5) contributes a minimum of $30 annually to the Minnesota critical habitat private
sector matching account established in section 84.943; and

(6) complies with this chapter and rules governing registration of motor vehicles and
licensing of drivers.

(b) The critical habitat plate application must indicate that the annual contribution
specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
and that the applicant may make an additional contribution to the account.

(c) Owners of recreational vehicles under paragraph (a), clause (1), are eligible only for
special critical habitat license plates for which the designs are selected under subdivision
2, on or after January 1, 2006.

(d) Special critical habitat license plates, the designs for which are selected under
subdivision 2, on or after January 1, 2006, may be personalized according to section 168.12,
subdivision 2a
.

Sec. 22.

Minnesota Statutes 2016, section 168.1297, subdivision 1, is amended to read:


Subdivision 1.

General requirements and procedures.

The commissioner shall issue
special "Rotary member" plates to an applicant who:

(1) is a registered owner of a passenger automobile;

(2) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endto cover the costs of handling and manufacturing the plates;

(3) pays the registration tax required under section 168.013;

(4) pays the fees required under this chapter;

(5) submits proof to the commissioner that the applicant is a member of Rotary
International; and

(6) complies with this chapter and rules governing registration of motor vehicles and
licensing of drivers.

Sec. 23.

Minnesota Statutes 2016, section 168.1298, subdivision 1, is amended to read:


Subdivision 1.

General requirements and procedures.

(a) The commissioner shall
issue special "Support Our Troops" license plates to an applicant who:

(1) is an owner of a passenger automobile, one-ton pickup truck, recreational vehicle,
or motorcycle;

(2) pays a fee of deleted text begin$10deleted text end new text begin$12.50 new text endto cover the costs of handling and manufacturing the plates;

(3) pays the registration tax required under section 168.013;

(4) pays the fees required under this chapter;

(5) contributes a minimum of $30 annually to the Minnesota "Support Our Troops"
account established in section 190.19; and

(6) complies with laws and rules governing registration and licensing of vehicles and
drivers.

(b) The license application under this section must indicate that the annual contribution
specified under paragraph (a), clause (5), is a minimum contribution to receive the plates
and that the applicant may make an additional contribution to the account.

Sec. 24.

Minnesota Statutes 2016, section 168.1299, subdivision 1, is amended to read:


Subdivision 1.

Issuance.

Notwithstanding section 168.1293, the commissioner shall
issue special Minnesota golf plates or a single motorcycle plate to an applicant who:

(1) is a registered owner of a passenger automobile, one-ton pickup truck, motorcycle,
or recreational vehicle;

(2) pays a fee of deleted text begin$10deleted text endnew text begin $12.50new text end and any other fees required by this chapter;

(3) contributes a minimum of $30 annually to the Minnesota Section PGA Foundation
account; and

(4) complies with this chapter and rules governing registration of motor vehicles and
licensing of drivers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to license plates
issued on and after that date.
new text end

Sec. 25.

Minnesota Statutes 2016, section 168.27, subdivision 22, is amended to read:


Subd. 22.

Dealer license for trailers, motorized bicycles; plates, fees; exemptions.

Any person, copartnership, or corporation having a permanent enclosed commercial building
or structure either owned in fee or leased and engaged in the business, either exclusively or
in addition to any other occupation, of selling motorized bicycles, boat trailers, horse trailers,
or snowmobile trailers, may apply to the registrar for a dealer's license. Upon payment of
a $10 fee the registrar shall license the applicant as a dealer for the remainder of the calendar
year in which the application was received. The license may be renewed on or before the
second day of January of each succeeding year by payment of a fee of $10. The registrar
shall issue to each dealer, upon request of the dealer, dealer plates as provided in subdivision
16 upon payment of deleted text begin$5deleted text end new text begin$6.25 new text endfor each plate, and the plates may be used in the same manner
and for the same purposes as is provided in subdivision 16. Except for motorized bicycle
dealers, the registrar shall also issue to the dealer, upon request of the dealer, "in-transit"
plates as provided in subdivision 17 upon payment of a fee of $5 for each plate. This
subdivision does not abrogate any of the provisions of this section relating to the duties,
responsibilities, and requirements of persons, copartnerships, or corporations engaged in
the business, either exclusively or in addition to other occupations, of selling motor vehicles
or manufactured homes, except that a seller of boat trailers, utility trailers, or snowmobile
trailers who is licensed under this subdivision is not required to have a contract or franchise
with a manufacturer or distributor of new boat trailers, utility trailers, or new snowmobile
trailers the seller proposes to sell, broker, wholesale, or auction. This section does not require
a manufacturer of snowmobile trailers whose manufacturing facility is located outside of
the metropolitan area as defined in section 473.121 to have a dealer's license to transport
the snowmobile trailers to dealers or retail outlets in the state.

Sec. 26.

Minnesota Statutes 2016, section 168.33, subdivision 2, is amended to read:


Subd. 2.

Deputy registrars.

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

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

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

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

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

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

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

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

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

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

Sec. 27.

Minnesota Statutes 2016, section 168.33, subdivision 7, is amended to read:


Subd. 7.

Filing feesnew text begin and surchargenew text end; allocations.

(a) In addition to all other statutory
fees and taxesdeleted text begin, a filing fee ofdeleted text end:

(1) new text begina new text end$6 new text beginfiling fee new text endis imposed on every vehicle registration renewal, excluding pro rate
transactions; deleted text beginand
deleted text end

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

new text begin (3) a new text end$10 new text beginfiling fee new text endis imposed on every other type of vehicle transaction, including motor
carrier fuel licenses under sections 168D.05 and 168D.06, and pro rate transactions.

(b) Notwithstanding paragraph (a):

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

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

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

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

(e) The fees new text beginand surcharge new text endcollected under deleted text beginthis subdivisiondeleted text endnew text begin paragraph (a)new text end by the
department must be allocated as follows:

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

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

(ii) $1.50 must be deposited:

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

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

new text begin (2) of the surcharge collected under paragraph (a), clause (2):
new text end

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

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

deleted text begin (2)deleted text end new text begin(3) new text endof the fees collected under paragraph (a), clause deleted text begin(2)deleted text endnew text begin (3)new text end:

(i) $3.50 must be deposited in the general fund;

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

(iii) $1.50 must be deposited:

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

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

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a), clause (3), is effective the day following final
enactment. The remainder of the section is effective July 1, 2017.
new text end

Sec. 28.

Minnesota Statutes 2016, section 168.62, subdivision 3, is amended to read:


Subd. 3.

Special plates or certificate; fee; proceeds to deleted text beginhighway user funddeleted text endnew text begin vehicle
services operating account
new text end.

At the same time that an owner or operator of intercity buses
registers them in Minnesota and obtains number plates therefor, the owner or operator shall
apply for special identification plates or certificates for the remainder of that fleet of intercity
buses. The registrar of motor vehicles shall design an appropriate plate or identification
certificate for this purpose which shall be issued upon the payment of a fee of deleted text begin$10deleted text end new text begin$12.50
new text end covering each intercity bus so identified. The proceeds of such fees shall be deposited to
the credit of the vehicle services operating account under section 299A.705, subdivision 1.
No intercity bus shall at any time be operated in the state of Minnesota without either
Minnesota number plates or special identification plates or certificates issued as herein
provided.

Sec. 29.

new text begin [174.54] CITY STREETS AND BRIDGES ACCOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Small city streets and bridges account. new text end

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

new text begin Subd. 2. new text end

new text begin Larger city streets and bridges account. new text end

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

Sec. 30.

Minnesota Statutes 2016, section 297A.815, subdivision 3, is amended to read:


Subd. 3.

Motor vehicle lease sales tax revenue.

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

deleted text begin (b)deleted text endnew text begin (a)new text end On or before June 30 of each fiscal year, the commissioner of revenue shall
estimate the amount of the deleted text beginnet revenuedeleted text end new text beginrevenues new text endfor the current fiscal yearnew text begin, including interest
and penalties collected during the fiscal year under this section
new text end.

deleted text begin (c)deleted text end new text begin(b) new text endOn or after July 1 of the subsequent fiscal year, the commissioner of management
and budget shall transfer the deleted text beginnet revenuedeleted text end new text beginrevenues new text endas estimated in paragraph (b) from the
general funddeleted text begin, as follows:
deleted text end

deleted text begin (1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafterdeleted text end to the
county state-aid highway fund.

new text begin (c) new text endNotwithstanding any other law to the contrary, the commissioner of transportation
shall allocate the funds transferred under deleted text beginthis clausedeleted text end new text beginparagraph (b)new text end to the counties in the
metropolitan area, as defined in section 473.121, subdivision 4, deleted text beginexcluding the counties of
Hennepin and Ramsey,
deleted text end so that each county shall receive of such amount the percentage that
its population, as defined in section 477A.011, subdivision 3, estimated or established by
July 15 of the year prior to the current calendar year, bears to the total population of the
counties receiving funds under this clausedeleted text begin; anddeleted text endnew text begin.new text endnew text begin For the purposes of the calculation in this
paragraph, the population of Hennepin County shall first be multiplied by 0.25, and the
population of Ramsey County shall first be multiplied by 0.5.
new text end

deleted text begin (2) the remainder to the greater Minnesota transit account.
deleted text end

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

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) to (c) are effective January 1, 2018, and paragraph
(d) is effective the day following final enactment.
new text end

Sec. 31.

Minnesota Statutes 2016, section 297B.09, subdivision 1, is amended to read:


Subdivision 1.

Deposit of revenues.

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

(b) deleted text begin60deleted text endnew text begin 58new text end percent of the money collected and received must be deposited in the highway
user tax distribution fund, deleted text begin36deleted text endnew text begin 34new text end percent must be deposited in the metropolitan area transit
account under section 16A.88, and deleted text beginfourdeleted text endnew text begin eightnew text end percent must be deposited in the greater
Minnesota transit account under section 16A.88.

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

Sec. 32. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 161.081, subdivision 3, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

ARTICLE 7

EFFICIENCY MEASURES

Section 1.

new text begin [161.225] LOANS FOR LAND ACQUISITION FOR HIGHWAY
PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Account established. new text end

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

new text begin Subd. 2. new text end

new text begin Loans. new text end

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

new text begin (b) The commissioner shall make loans only to:
new text end

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

new text begin (2) avert the imminent conversion or the granting of approvals which would allow the
conversion of property to uses which would jeopardize the property's availability for highway
construction;
new text end

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

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

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

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

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

new text begin Subd. 3. new text end

new text begin Loans for acquisition and relocation. new text end

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

new text begin (b) The commissioner may make loans only when:
new text end

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

new text begin (2) federal or state financial participation is not available;
new text end

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

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

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

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

new text begin (2) "homestead property" means:
new text end

new text begin (i) a single-family dwelling occupied by the owner, and the surrounding land, not
exceeding a total of ten acres; or
new text end

new text begin (ii) a manufactured home, as defined in section 327B.01, subdivision 13; and
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2018.
new text end

Sec. 2.

Minnesota Statutes 2016, section 161.46, subdivision 2, is amended to read:


Subd. 2.

Relocation of facilities; reimbursement.

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

new text begin (b) Notwithstanding paragraph (a), any utility facility installed after August 1, 2017, is
not eligible for relocation reimbursement.
new text end

Sec. 3.

Minnesota Statutes 2016, section 168.013, subdivision 8, is amended to read:


Subd. 8.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to vehicle
registration taxes due and unpaid on and after that date.
new text end

Sec. 4.

Minnesota Statutes 2016, section 168.12, subdivision 1, is amended to read:


Subdivision 1.

Plates; design, visibility, periods of issuance.

(a) The commissioner,
upon approval and payment, shall issue to the applicant the plates required by this chapter,
bearing the state name and an assigned vehicle registration number. The number assigned
by the commissioner may be a combination of a letter or sign with figures. The color of the
plates and the color of the abbreviation of the state name and the number assigned must be
in marked contrast. The plates must be lettered, spaced, or distinguished to suitably indicate
the registration of the vehicle according to the rules of the commissioner.

(b) When a vehicle is registered on the basis of total gross weight, the plates issued must
clearly indicate by letters or other suitable insignia the maximum gross weight for which
the tax has been paid.

(c) Plates issued to a noncommercial vehicle must bear the inscription "noncommercial"
unless the vehicle is displaying a special plate authorized and issued under this chapter.

(d) A one-ton pickup truck that is used for commercial purposes and is subject to section
168.185, is eligible to display special plates as authorized and issued under this chapter.

(e) The plates must be so treated as to be at least 100 times brighter than the conventional
painted number plates. When properly mounted on an unlighted vehicle, the plates, when
viewed from a vehicle equipped with standard headlights, must be visible for a distance of
not less than 1,500 feet and readable for a distance of not less than 110 feet.

(f) The commissioner shall issue plates for the following periods:

(1) New plates issued pursuant to section 168.012, subdivision 1, must be issued to a
vehicle for as long as the vehicle is owned by the exempt agency and the plate shall not be
transferable from one vehicle to another but the plate may be transferred with the vehicle
from one tax-exempt agency to another.

(2) Plates issued for passenger automobiles must be issued for a deleted text beginseven-yeardeleted text endnew text begin ten-year
new text end period. All plates issued under this paragraph must be replaced if they are deleted text beginsevendeleted text endnew text begin tennew text end years
old or older at the time of registration renewal or will become so during the registration
period.

(3) Plates issued under sections 168.053 and 168.27, subdivisions 16 and 17, must be
for a deleted text beginseven-yeardeleted text endnew text begin ten-yearnew text end period.

(4) Plates issued under subdivisions 2c and 2d and section 168.123 must be issued for
the life of the veteran under section 169.79.

(5) Plates for any vehicle not specified in clauses (1) to (3) must be issued for the life
of the vehicle.

(g) In a year in which plates are not issued, the commissioner shall issue for each
registration a sticker to designate the year of registration. This sticker must show the year
or years for which the sticker is issued, and is valid only for that period. The plates and
stickers issued for a vehicle may not be transferred to another vehicle during the period for
which the sticker is issued, except when issued for a vehicle registered under section 168.187.

(h) Despite any other provision of this subdivision, plates issued to a vehicle used for
behind-the-wheel instruction in a driver education course in a public school may be
transferred to another vehicle used for the same purpose without payment of any additional
fee. The public school shall notify the commissioner of each transfer of plates under this
paragraph. The commissioner may prescribe a format for notification.

Sec. 5.

Minnesota Statutes 2016, section 168.31, is amended by adding a subdivision to
read:


new text begin Subd. 1a. new text end

new text begin Penalty surcharge for late payment. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017, and applies to vehicle
registration taxes due and unpaid on and after that date.
new text end

Sec. 6.

new text begin [174.53] FEDERAL FUND FLEXIBILITY PROGRAM.
new text end

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2016, section 473.167, is amended to read:


473.167 HIGHWAY new text beginAND TRANSIT new text endPROJECTS.

Subd. 2.

Loans for acquisition.

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

(b) The council shall make loans only:

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

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

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

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

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

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

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

Subd. 2a.

Loans for acquisition and relocation.

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

(b) The council may make loans only when:

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

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

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

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

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

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

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

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

Subd. 3.

Tax.

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

Subd. 4.

State review.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

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


Sec. 33. TRANSPORTATION EFFICIENCIES.

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

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

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

ARTICLE 8

TRANSPORTATION POLICY

Section 1.

new text begin [174.13] OLMSTEAD PLAN GOALS FOR IMPROVED ACCESSIBILITY.
new text end

new text begin By December 31, 2020, the department must:
new text end

new text begin (1) make accessibility improvements to 4,200 curb ramps, 250 accessible pedestrian
signals, and 30 miles of sidewalk;
new text end

new text begin (2) increase the annual number of passenger trips to 18.8 million in greater Minnesota
by providing additional rides and service hours;
new text end

new text begin (3) expand transit coverage so that 90 percent of the public transportation service areas
in Minnesota will meet minimum service guidelines for access; and
new text end

new text begin (4) achieve 90 percent or greater on-time performance for transit systems statewide.
new text end

new text begin The improvements required by this section must be measured against the numbers for each
category as they existed in January 1, 2013.
new text end

Sec. 2.

new text begin [174.38] ACTIVE TRANSPORTATION PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) "Bond-eligible cost" means:
new text end

new text begin (1) expenditures under this section for acquisition of land or permanent easements,
predesign, design, preliminary and final engineering, environmental analysis, construction,
and reconstruction of publicly owned infrastructure in this state with a useful life of at least
ten years that provides for nonmotorized transportation;
new text end

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

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

new text begin (d) "Council" means the Metropolitan Council, as defined in section 473.121, subdivision
3.
new text end

new text begin Subd. 2. new text end

new text begin Programs established. new text end

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

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

new text begin Subd. 3. new text end

new text begin Active transportation accounts. new text end

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

new text begin (b) A greater Minnesota active transportation account is established in the special revenue
fund. The account consists of funds as provided by law and any other money donated,
allotted, transferred, or otherwise provided to the account. Money in the account may only
be expended on a project that is primarily located outside of the Metropolitan Transit
Improvement Area, as defined in section 297A.9925, subdivision 1, and that is receiving
financial assistance as provided under this section.
new text end

new text begin (c) A metropolitan area active transportation account is established in the special revenue
fund. The account consists of funds as provided by law and any other money donated,
allotted, transferred, or otherwise provided to the account. Money in the account may only
be expended on a project that is primarily located within the metropolitan transit improvement
area, as defined in section 297A.9925, subdivision 1, and receiving financial assistance as
provided under this section.
new text end

new text begin Subd. 4. new text end

new text begin Program administration. new text end

new text begin (a) The authority shall establish program
requirements, including:
new text end

new text begin (1) eligibility for assistance, subject to the requirements under paragraph (b);
new text end

new text begin (2) a process for solicitation and application that minimizes applicant burdens; and
new text end

new text begin (3) procedures for award and payment of financial assistance.
new text end

new text begin (b) Eligible recipients of financial assistance under this section are:
new text end

new text begin (1) a political subdivision; and
new text end

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

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

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

new text begin Subd. 5. new text end

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

new text begin The legislature determines that many
nonmotorized transportation infrastructure projects constitute betterments and capital
improvements within the meaning of the Minnesota Constitution, article XI, section 5,
paragraph (a), and capital expenditures under generally accepted accounting principles and
are financed more efficiently and economically by this section than by direct appropriations
for specific projects.
new text end

new text begin Subd. 6. new text end

new text begin Use of funds. new text end

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

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

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

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

new text begin Subd. 7. new text end

new text begin Project evaluation and selection. new text end

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

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

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

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

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

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

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

new text begin Subd. 8. new text end

new text begin Grant cancellation. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 174.42, is amended by adding a subdivision to
read:


new text begin Subd. 3. new text end

new text begin Funding requirement for greater Minnesota. new text end

new text begin In each federal fiscal year, the
commissioner shall spend out of National Highway Performance Program funds a total
amount in federal transportation funds for an active transportation competitive grant program
in greater Minnesota that totals a minimum of $16,000,000 in excess of the average annual
spending on greater Minnesota transportation alternatives projects under section 174.38 in
federal fiscal years between October 2009 and September 2012. National Highway
Performance Program funds may be converted to Surface Transportation Program funds or
Transportation Alternative Program funds to fulfill the requirements of this section. This
requirement must not reduce the amount of federal transportation funding for metropolitan
projects.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2017.
new text end

Sec. 4.

Minnesota Statutes 2016, section 174.50, is amended by adding a subdivision to
read:


new text begin Subd. 6d. new text end

new text begin Major local bridges account. new text end

new text begin The major local bridges account is created in
the Minnesota state transportation fund for money appropriated, allocated, or transferred
into the account to fund major local bridge projects. For purposes of this subdivision, a
major local bridge project is a project that carries a total cost in excess of $30,000,000.
new text end

Sec. 5.

new text begin [219.016] RAILROAD COMPANY ASSESSMENT; ACCOUNT;
APPROPRIATION.
new text end

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

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

new text begin (c) The assessments must be deposited in the rail grade crossing safety improvement
account, which is created in the special revenue fund. Money in the account is appropriated
to the commissioner for the creation of a rail safety office within the Department of
Transportation, not to exceed $1,400,000 in each year; the development, administration,
and construction of highway-rail grade crossing improvements on rail corridors transporting
crude oil; and other selected routes, including those carrying hazardous materials.
Improvements may include upgrades to existing protection systems, the closing of crossings
and necessary roadwork, and reconstruction of at-grade crossings to full grade separations.
Funds in the account are available until expended.
new text end

Sec. 6. new text beginTRANSPORTATION PROJECT SELECTION PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Adoption of process and public input. new text end

new text begin After consultation with
metropolitan planning organizations, regional development commissions, area transportation
partnerships, local governments, and the Metropolitan Council, the commissioner of
transportation shall draft a proposed transportation project data-driven evaluation process
to provide an objective and consistent analysis to assist in developing the statewide
transportation plan and prioritization of highway construction, reconstruction, and
improvement projects in the state transportation improvement program. No later than
September 1, 2017, the proposed process must be reported to the chairs and ranking minority
members of the senate and house of representatives committees with jurisdiction over
transportation policy and finance and publicized, along with a schedule for public hearings
and additional opportunities for public input, electronically and at locations throughout the
state. No later than January 10, 2018, after public comment has been heard and incorporated
into the proposed evaluation process, the commissioner shall adopt a final process for use
in highway project investment decisions on and after March 1, 2018.
new text end

new text begin Subd. 2. new text end

new text begin Factors in analysis. new text end

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

new text begin Subd. 3. new text end

new text begin Exemptions. new text end

new text begin A proposed project is exempt from the process if it is:
new text end

new text begin (1) funded by a grant from:
new text end

new text begin (i) the corridors of commerce program under Minnesota Statutes, section 161.088;
new text end

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

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

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

new text begin Subd. 4. new text end

new text begin Information on department's Web site. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text beginESTABLISHMENT OF ROAD-USER CHARGE WORKING GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Road-user charge. new text end

new text begin The road-user charge working group is established
to study and report to the legislature concerning issues related to designing and implementing
a road-user charge in this state. The road-user charge working group consists of 15 members,
as follows:
new text end

new text begin (1) the chairs and ranking minority members of the house of representatives and senate
committees or divisions with jurisdiction over transportation policy and finance;
new text end

new text begin (2) the commissioner of transportation or a designee; and
new text end

new text begin (3) public members who have relevant expertise and interest, including members or
representatives of transportation user groups, the telecommunications industry, the data
security and privacy industry, privacy rights advocacy groups, and research and policy
making bodies. Of these members, five must be appointed by the speaker of the house and
five must be appointed by the majority leader of the senate.
new text end

new text begin Subd. 2. new text end

new text begin Duties of road-user charge working group. new text end

new text begin The working group shall identify
and consider policy and technical issues related to funding state transportation infrastructure
through implementation of a road-user charge as an alternative to the motor fuels tax. The
working group shall study and make recommendations concerning cost, privacy, jurisdictional
issues, feasibility, complexity, public acceptance, use of revenues, possible constitutional
dedication, security, compliance, data collection technology that includes privacy and user
options, implementation, and related issues. In addition, the working group shall seek and
facilitate collaboration with other states, review pilot project and implementation results
from other states and countries, and explore federal funding opportunities.
new text end

new text begin Subd. 3. new text end

new text begin Report of working group. new text end

new text begin By January 15, 2019, the working group shall
submit a report to the chairs of the committees in the senate and house of representatives
with jurisdiction over transportation policy and finance. The report must state findings and
recommendations concerning a road-user charge. The report may recommend the
development by the commissioner of transportation of an implementation plan that may:
new text end

new text begin (1) identify a project implementation timeline, which may include pilot programs, limited
initial deployment, multiple fee structure options for road users, and phased implementation;
new text end

new text begin (2) identify a fee structure, which must include distance traveled and may include
additional factors such as vehicle weight, vehicle impact on roadways, fuel type, and vehicle
type;
new text end

new text begin (3) include a fiscal analysis that identifies costs, revenue projections, and any associated
tax rate changes;
new text end

new text begin (4) establish a technological and operational architecture for the system;
new text end

new text begin (5) address program and system administration, including but not limited to data privacy,
data integrity, and accuracy of information; and
new text end

new text begin (6) be based in surface transportation finance principles, including:
new text end

new text begin (i) efficiency, including impacts on road system use and land use;
new text end

new text begin (ii) equity across road system users and vehicles, including:
new text end

new text begin (A) user payment relative to user costs imposed;
new text end

new text begin (B) the distribution of the burden of a fee structure that includes the factors required
under Minnesota Statutes, section 270C.13, subdivision 1, clauses (1) to (3); and
new text end

new text begin (C) identification of and possible fiscal offsets for any disparate impact on users based
on geographic location of their residency;
new text end

new text begin (iii) revenue adequacy and long-term suitability of funding after complete implementation;
new text end

new text begin (iv) environmental impacts and sustainability;
new text end

new text begin (v) administrative and technical feasibility, including data privacy and protection;
new text end

new text begin (vi) transparency; and
new text end

new text begin (vii) accountability.
new text end

new text begin Subd. 4. new text end

new text begin Administrative provisions. new text end

new text begin (a) The commissioner of transportation or the
commissioner's designee shall convene the initial meeting of the working group no later
than September 1, 2017. Upon request of the working group, the commissioner shall provide
meeting space and administrative services for the group. The members of the working group
shall elect a chair or cochairs from the members of the working group at the initial meeting.
new text end

new text begin (b) Public members of the working group serve without compensation or payment of
expenses.
new text end

new text begin (c) The working group expires May 1, 2019, or upon submission of the report required
under subdivision 3, whichever is earlier.
new text end

new text begin (d) The working group may accept gifts and grants, which are accepted on behalf of the
state and constitute donations to the state. Funds received under this paragraph are
appropriated to the commissioner of transportation for purposes of the working group.
new text end

new text begin Subd. 5. new text end

new text begin Deadline for appointments and designations. new text end

new text begin The appointments and
designations for the road-user charge working group must be completed by August 1, 2017.
new text end

Sec. 8. new text beginREGULAR ROUTE TRANSIT REQUIREMENT.
new text end

new text begin By September 1, 2017, the Metropolitan Council shall institute regular route transit
service to the city of Hastings, provided that the governing body of the city of Hastings has
entered into an agreement with the Metropolitan Council, no later than July 1, 2017, to
become a part of the transit taxing district under Minnesota Statutes, section 473.4461.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9. new text beginENHANCED ORGANIZATIONAL EFFECTIVENESS AND INNOVATION
REVIEW.
new text end

new text begin (a) A review and assessment of the organizational structure of the Department of
Transportation is required to enhance organizational effectiveness, encourage prudent
allocation of resources, and deliver the greatest value to Minnesota. This review and
assessment shall be completed by a partnership that includes the Humphrey School of Public
Affairs, Carlson School of Management, and the State Smart Transportation Initiative at
the University of Wisconsin.
new text end

new text begin (b) A preliminary report of this review and assessment shall be submitted to the chairs
and ranking minority members of the legislative committees having jurisdiction over
transportation policy and finance by December 15, 2017, with the final report submitted by
June 30, 2018.
new text end

new text begin (c) At a minimum, the review and assessment shall include:
new text end

new text begin (1) the relationship of each district, division, office, and section of the department to the
state's transportation goals under Minnesota Statutes, section 174.01; the department's
mission under Minnesota Statutes, section 174.02; the duties of the commissioner under
Minnesota Statutes, section 174.03; the annual performance targets under Minnesota Statutes,
section 174.03, subdivision 1c; and adherence to all relevant provisions of state statute and
federal law;
new text end

new text begin (2) the budget assigned to each district, division, office, and section of the department;
new text end

new text begin (3) the ratio of employees to supervisors in each district, division, office, and section of
the department;
new text end

new text begin (4) recommendations identifying best practices and comparisons with other state
departments of transportation;
new text end

new text begin (5) recommendations regarding the appropriate ratio of employees to supervisors for
the variety of activities performed by the department;
new text end

new text begin (6) recommendations regarding the appropriate increase in department operations resulting
from increases in capital investments;
new text end

new text begin (7) recommendations regarding the appropriate fiscal responsibility assigned to
construction inspectors and engineers;
new text end

new text begin (8) recommendations regarding the appropriate, fiscally constrained size of the trunk
highway system; and
new text end

new text begin (9) recommendations regarding how to achieve the appropriate, fiscally constrained size
of the trunk highway system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 10. new text beginACTIVE TRANSPORTATION PROGRAM DEVELOPMENT.
new text end

new text begin (a) By October 1, 2017, the Advisory Committee on Nonmotorized Transportation under
Minnesota Statutes, section 174.37, shall develop and submit recommendations to each
administering authority under Minnesota Statutes, section 174.38, for developing project
evaluation and selection processes under Minnesota Statutes, section 174.38, subdivision
7. The advisory committee may consult with representatives from the Bicycle Alliance of
Minnesota, Minnesota Chamber of Commerce, Metropolitan Council Transportation
Accessibility Advisory Committee, Minnesota Department of Transportation district area
transportation partnerships, Minnesota State Council on Disability, organizations representing
elderly populations, and public health organizations with experience in active transportation.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

APPENDIX

Repealed Minnesota Statutes: 17-4002

161.081 HIGHWAY USER TAX, DISTRIBUTION, INVESTMENT.

Subd. 3.

Flexible highway account; turnback accounts.

(a) The flexible highway account is created in the state treasury. Money in the account shall be used:

(1) in fiscal years 2009 and 2010, 100 percent of the excess sum, as calculated in paragraph (i), and in fiscal years 2011 and thereafter, 50 percent of the excess sum, as calculated in paragraph (i), for counties in the metropolitan area, as defined in section 473.121, subdivision 4, but for the purposes of the calculation cities of the first class will be excluded in the metropolitan area; and

(2) of the amount available in the flexible highway account less the amount under clause (1), as determined by the commissioner under this section for:

(i) restoration of former trunk highways that have reverted to counties or to statutory or home rule charter cities, or for trunk highways that will be restored and subsequently turned back by agreement between the commissioner and the local road authority;

(ii) safety improvements on county highways, municipal highways, streets, or town roads; and

(iii) routes of regional significance.

(b) For purposes of this subdivision, "restoration" means the level of effort required to improve the route that will be turned back to an acceptable condition as determined by agreement made between the commissioner and the county or city before the route is turned back.

(c) The commissioner shall review the need for funds to restore highways that have been or will be turned back. The commissioner shall determine, on a biennial basis, the percentage of funds in the flexible highway account to be distributed to each district, and within each district the percentage to be used for each of the purposes specified in paragraph (a). Money in the account may be used for safety improvements and routes of regional significance only after money is set aside to restore the identified turnbacks. The commissioner shall make these determinations only after meeting and holding discussions with committees selected by the statewide associations of both county commissioners and municipal officials. The commissioner shall, to the extent feasible, annually allocate 50 percent of the funds in the flexible highway account to the department's metropolitan district, and 50 percent to districts in greater Minnesota.

(d) Money that will be used for the restoration of trunk highways that have reverted or that will revert to cities must be deposited in the municipal turnback account, which is created in the state treasury.

(e) Money that will be used for the restoration of trunk highways that have reverted or that will revert to counties must be deposited in the county turnback account, which is created in the state treasury.

(f) Money that will be used for safety improvements must be deposited in the highway safety improvement account, which is created in the state treasury to be used as grants to statutory or home rule charter cities, towns, and counties to assist in paying the costs of constructing or reconstructing city streets, county highways, or town roads to reduce crashes, deaths, injuries, and property damage.

(g) Money that will be used for routes of regional significance must be deposited in the routes of regional significance account, which is created in the state treasury, and used as grants to statutory or home rule charter cities, towns, and counties to assist in paying the costs of constructing or reconstructing city streets, county highways, or town roads with statewide or regional significance that have not been fully funded through other state, federal, or local funding sources.

(h) As part of each biennial budget submission to the legislature, the commissioner shall describe how the money in the flexible highway account will be apportioned among the county turnback account, the municipal turnback account, the trunk highway fund for routes turned back to local governments by agreement, the highway safety improvement account, and the routes of regional significance account.

(i) The excess sum is calculated as the sum of revenue within the flexible highway account:

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

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

(3) attributed to that portion of the motor vehicle sales tax revenue in excess of the percentage allocated to the flexible highway account in fiscal year 2007.

(j) For purposes of this subdivision, the United States Consumer Price Index identified in paragraph (i), clause (2), is for all urban consumers, United States city average, as determined by the United States Department of Labor.

473.4051 LIGHT RAIL TRANSIT CONSTRUCTION AND OPERATION.

Subd. 2.

Operating costs.

After operating revenue and federal money have been used to pay for light rail transit operations, 50 percent of the remaining operating costs must be paid by the state.