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1996 Minnesota Session Laws

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                            CHAPTER 455-S.F.No. 2702 
                  An act relating to the organization and operation of 
                  state government; appropriating money to the 
                  department of transportation and other agencies; 
                  providing for speed limits and recording of speeding 
                  violations; authorizing special license plates; 
                  providing for designated parent agreements; 
                  authorizing certain tax levies for replacement transit 
                  service; providing for highway disputes between 
                  counties and municipalities; amending Minnesota 
                  Statutes 1994, sections 115A.9651, subdivision 1; 
                  160.83, by adding a subdivision; 160.85, by adding a 
                  subdivision; 161.085; 161.14, by adding subdivisions; 
                  161.36, subdivisions 1, 2, 3, and 4; 161.46, 
                  subdivision 3; 161.53; 162.02, subdivisions 7, 8, and 
                  by adding a subdivision; 162.07, subdivisions 1, 5, 
                  and 6; 162.08, subdivisions 4 and 7; 162.14, 
                  subdivision 6; 168.013, subdivision 3; 168.042, 
                  subdivision 8, and by adding a subdivision; 168.12, 
                  subdivision 2; 168.123, subdivisions 1 and 4; 168.15; 
                  168.33, by adding a subdivision; 169.07; 169.121, 
                  subdivision 3; 169.14, subdivision 2, and by adding a 
                  subdivision; 169.82, subdivision 3; 169.85; 169.871, 
                  by adding a subdivision; 169.983; 169.99, subdivision 
                  1b; 171.05, by adding a subdivision; 171.07, by adding 
                  a subdivision; 171.12, subdivision 6; 171.26; 173.02, 
                  subdivision 6; 173.07, subdivision 1; 174.04; 222.37, 
                  subdivision 1; 260.173, subdivision 2; 473.388, 
                  subdivision 5, and by adding a subdivision; 473.446, 
                  by adding a subdivision; and 524.5-505; Minnesota 
                  Statutes 1995 Supplement, sections 13.69, subdivision 
                  1; 168.1296, subdivision 1; 168.16; 169.862; 171.04, 
                  subdivision 1; 221.0355, subdivisions 5 and 15; 
                  275.065, subdivisions 3 and 6; and 473.446, 
                  subdivisions 1 and 8; Laws 1994, chapter 589, section 
                  8; proposing coding for new law in Minnesota Statutes, 
                  chapters 161; 168; and 173; proposing coding for new 
                  law as Minnesota Statutes, chapter 257A; repealing 
                  Minnesota Statutes 1994, sections 161.086; 161.115, 
                  subdivision 262; and 169.141. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                             TRANSPORTATION FUNDING
        Section 1.  [TRANSPORTATION AND OTHER AGENCIES APPROPRIATIONS.] 
           The sums in the columns headed "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified, and are added to 
        appropriations for the fiscal years ending June 30, 1996, and 
        June 30, 1997, in Laws 1995, chapter 265, or other named law. 
                                SUMMARY BY FUND
                                                 1996          1997
        General Fund                      $.,...,-0-,... $    7,640,000
        Highway User Tax
        Distribution Fund                  .,...,-0-,...        160,000 
        Trunk Highway Fund                     9,687,000     42,760,000
        County State Aid Fund              .,...,-0-,...        100,000 
        Sec. 2.  DEPARTMENT OF
        TRANSPORTATION                         9,687,000     43,290,000
        (a) State Road Construction
             9,687,000     35,513,000
        The appropriations for fiscal years 
        1996 and 1997 are from the trunk 
        highway fund for state road 
        construction and are added to the 
        appropriations in Laws 1995, chapter 
        265, article 2, section 2, subdivision 
        7, clause (a). 
        (b) Design Engineering and Construction 
        Engineering 
                           6,267,000
        This appropriation for fiscal year 1997 
        is from the trunk highway fund for 
        design engineering and construction 
        engineering and is added to the 
        appropriations in Laws 1995, chapter 
        265, article 2, section 2, subdivision 
        7, clauses (d) and (e), as needed. 
        For the purpose of Laws 1995, chapter 
        254, article 1, section 93, paragraph 
        (a), "contracts for highway 
        construction or maintenance" includes 
        contracts for design engineering and 
        construction engineering. 
        (c) Greater Minnesota Transit 
        Assistance 
                            1,000,000
        This appropriation for fiscal year 1997 
        is for greater Minnesota transit 
        assistance and is added to the 
        appropriation in Laws 1995, chapter 
        265, article 2, section 2, subdivision 
        3, clause (a).  Any unencumbered 
        balance in that clause for fiscal year 
        1996 does not cancel but is available 
        for the second year. 
        (d) General Management                   
                              200,000
        $200,000 is appropriated from the 
        general fund for the purpose of 
        convening a telecommuting community 
        dialogue process to gather information 
        on existing telecommunication systems, 
        conduct public opinion polls via the 
        Internet, and develop recommendations 
        on improving the integration and 
        coordination of telecommunication 
        systems.  The department shall report 
        findings and recommendations to the 
        legislature by February 15, 1997.  This 
        appropriation is available on receipt 
        by the commissioner of $100,000 of 
        matching contributions of money from 
        nonstate sources.* (The preceding text 
        beginning "(d)" was vetoed by the 
        governor.) 
        (e) Shingobee Road     
                              100,000
        $100,000 is appropriated from the town 
        road account in the county state-aid 
        highway fund before the apportionment 
        otherwise required to be made under 
        Minnesota Statutes, section 162.081, 
        subdivisions 2 and 3, for the purpose 
        of making a grant to the town of 
        Shingobee in Cass county to improve the 
        Ah-Gwah-Ching cutoff road.  The 
        appropriation is available if the 
        commissioner determines that the 
        Shingobee town board has made a 
        commitment to establish the road as a 
        town road upon completion of the 
        improvement. 
        (f) Stone Arch Bridge  
                              110,000
        The appropriation is for the repair of 
        the Stone Arch Bridge. 
        (g) Driver Education Programs 
                              100,000
        This appropriation is for a grant to 
        the Minnesota highway safety center at 
        St. Cloud State University for driver 
        education programs. 
        Sec. 3.  METROPOLITAN COUNCIL                         6,000,000
        This appropriation for fiscal year 1997 
        is for metropolitan transit operations 
        and is added to the appropriation in 
        Laws 1995, chapter 265, article 2, 
        section 3. 
        Notwithstanding the limit on spending 
        for metro mobility in Laws 1995, 
        chapter 265, article 2, section 3, the 
        metropolitan council may spend up to 
        $1,600,000 of this appropriation for 
        metro mobility.  
        Of this appropriation, the council may 
        spend up to $625,000 in fiscal year 
        1997 to implement the high-speed bus 
        demonstration project authorized in 
        Laws 1995, chapter 265, article 2, 
        section 3. 
        Sec. 4.  DEPARTMENT OF PUBLIC SAFETY                  1,370,000
                      Summary by Fund
        General               ..,-0-,...      230,000
        Trunk Highway         ..,-0-,...      980,000
        Highway User Tax
        Distribution Fund     ..,-0-,...      160,000
        (a) State Patrol
                              150,000
        Of this appropriation, $150,000 is from 
        the trunk highway fund for four 
        additional radio communication 
        operators. 
        (b) Driver and Vehicle Services 
                              336,000
        $14,000 from the highway user tax 
        distribution fund and $65,000 from the 
        trunk highway fund are for costs 
        related to the implementation of 
        Minnesota Statutes, section 168.042. 
        $113,000 is from the highway user tax 
        distribution fund and is added to the 
        appropriations in Laws 1995, chapter 
        265, article 2, section 5, subdivision 
        4.  This appropriation is for costs 
        related to driver's license and motor 
        vehicle registration records and is 
        available only to the extent required 
        to comply with a law effective during 
        fiscal year 1997 that substantially 
        changes the data privacy status of 
        these records. 
        $111,000 is from the general fund to 
        implement Minnesota Statutes, section 
        171.07, subdivision 11. 
        $33,000 is from the highway user tax 
        distribution fund for programming costs 
        related to registration tax refunds for 
        rental motor vehicles. 
        (c) Administration and Related Services 
                              884,000
        This appropriation for fiscal year 1997 
        is added to the appropriations in Laws 
        1995, chapter 265, article 2, section 
        5, subdivision 2. 
        This appropriation is for agency 
        critical operations systems.  Of this 
        appropriation, $765,000 is from the 
        trunk highway fund. 
        (d) Critical Habitat Matching 
        The commissioner of public safety shall 
        determine whether the fees collected 
        under Minnesota Statutes, section 
        168.1296, for critical habitat license 
        plates have been sufficient to cover 
        the costs of handling and manufacturing 
        the license plates during the biennium 
        ending June 30, 1997.  If the fees have 
        been deficient, the amount of the 
        deficiency is appropriated from the 
        Minnesota critical habitat private 
        sector matching account in the reinvest 
        in Minnesota resources fund for 
        transfer to the highway user tax 
        distribution fund.  
           Sec. 5.  Minnesota Statutes 1994, section 169.14, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SPEED LIMITS.] (a) Where no special hazard 
        exists the following speeds shall be lawful, but any speeds in 
        excess of such limits shall be prima facie evidence that the 
        speed is not reasonable or prudent and that it is unlawful; 
        except that the speed limit within any municipality shall be a 
        maximum limit and any speed in excess thereof shall be unlawful: 
           (1) 30 miles per hour in an urban district; 
           (2) 65 miles per hour in other locations during the daytime 
        on freeways and expressways, as defined in section 160.02, 
        subdivision 16, outside the limits of any urbanized area with a 
        population of greater than 50,000 as defined by order of the 
        commissioner of transportation; 
           (3) 55 miles per hour in such other locations during the 
        nighttime other than those specified in this section; 
           (4) ten miles per hour in alleys; and 
           (5) 25 miles per hour in residential roadways if adopted by 
        the road authority having jurisdiction over the residential 
        roadway.  
           (b) A speed limit adopted under paragraph (a), clause (5), 
        is not effective unless the road authority has erected signs 
        designating the speed limit and indicating the beginning and end 
        of the residential roadway on which the speed limit applies.  
           (c) "Daytime" means from a half hour before sunrise to a 
        half hour after sunset, except at any time when due to weather 
        or other conditions there is not sufficient light to render 
        clearly discernible persons and vehicles at a distance of 500 
        feet.  "Nighttime" means at any other hour or at any time when 
        due to weather or other conditions there is not sufficient light 
        to render clearly discernible persons and vehicles at a distance 
        of 500 feet. 
           Sec. 6.  Minnesota Statutes 1994, section 169.14, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [ESTABLISHMENT OF SPEEDS ON 
        HIGHWAYS.] Notwithstanding subdivision 4, the commissioner may 
        by order designate a maximum lawful speed for freeways and 
        expressways, as defined in section 160.02, subdivision 16, with 
        or without an engineering and traffic investigation.  The order 
        may apply to all such highways or to specific highways 
        identified in the order. 
           Sec. 7.  Minnesota Statutes 1994, section 169.983, is 
        amended to read: 
           169.983 [SPEEDING VIOLATIONS; CREDIT CARD PAYMENT OF 
        FINES.] 
           The officer who issues a citation for a violation by a 
        person who does not reside in Minnesota of section 169.14 or 
        169.141 shall give the defendant the option to plead guilty to 
        the violation upon issuance of the citation and to pay the fine 
        to the issuing officer with a credit card. 
           The commissioner of public safety shall adopt rules to 
        implement this section, including specifying the types of credit 
        cards that may be used. 
           Sec. 8.  Minnesota Statutes 1994, section 169.99, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [SPEED.] The uniform traffic ticket must provide 
        a blank or space wherein an officer who issues a citation for a 
        violation of section 169.141 169.14, subdivision 2, paragraph 
        (a), clause (3), must specify whether the speed was greater than 
        ten miles per hour in excess of the lawful speed designated 
        under that section. 
           Sec. 9.  Minnesota Statutes 1994, section 171.12, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CERTAIN CONVICTIONS NOT RECORDED.] The 
        department shall not keep on the record of a driver any 
        conviction for a violation of section 169.141 169.14, 
        subdivision 2, paragraph (a), clause (3), unless the violation 
        consisted of a speed greater than ten miles per hour in excess 
        of the lawful speed designated under that section. 
           Sec. 10.  [DRIVER'S LICENSE FEES; DEPOSIT IN GENERAL FUND.] 
           Notwithstanding Minnesota Statutes, section 171.26, up to 
        $100,000 in revenues received under Minnesota Statutes, chapter 
        171, in fiscal year 1997 shall be deposited in the general 
        fund.  This deposit is in addition to any deposit of revenue in 
        the general fund under Minnesota Statutes, section 171.07, 
        subdivision 11. 
           Sec. 11.  [REPEALER.] 
           Minnesota Statutes 1994, section 169.141, is repealed.  Any 
        order issued under that section is void. 
           Sec. 12.  [EFFECTIVE DATE.] 
           (a) Any provision making an appropriation for fiscal year 
        1996 is effective the day following final enactment. 
           (b) Section 10 is effective July 1, 1996. 
           (c) Sections 5 to 9 and 11 are effective May 1, 1996.  
                                   ARTICLE 2
                      TRANSPORTATION CAPITAL IMPROVEMENTS
        Section 1.  The sums in the column under "APPROPRIATIONS" are 
        appropriated from the trunk highway fund to the state agencies 
        or officials indicated, to be spent to acquire and to better 
        public land and buildings and other public improvements of a 
        capital nature, as specified in this article. 
                                                   APPROPRIATIONS 
        Sec. 2.  FACILITY PROJECTS                           21,639,000
        This appropriation is from the trunk 
        highway fund to the commissioner of 
        transportation for the purposes 
        specified in paragraphs (a) and (b). 
        (a) Trunk Highway 
        Facility Projects                                    20,454,000
        (1) For construction documents, construction,
        furnishing, and equipping of Bemidji 
        headquarters building to replace the existing
        facility.  The new facility will house the district
        staff, support services, design, construction,
        right-of-way, materials engineering, maintenance,
        radio shop, inventory center, vehicle maintenance,
        vehicle storage, bridge maintenance, and building
        services                                              9,000,000
        (2) Repair, replace, construct, or develop
        additions to chemical and salt storage buildings
        at 29 department of transportation locations
        statewide                                             1,000,000
        (3) For schematic design, design
        development, construction documents, construction,
        furnishing, and equipping of an addition to the
        Rochester district office and state patrol center     1,260,000
        (4) Construct, furnish, and equip a new
        equipment storage building on a new site in
        Pipestone to replace the existing facility              520,000
        (5) Construct, furnish, and equip a new
        equipment storage building on a new site in
        Deer Lake to combine and replace existing
        operations at Togo and Effie                            644,000
        (6) Construct, furnish, and equip a new
        equipment storage building on a new site in 
        Rushford to replace the existing facility               663,000
        (7) For construction documents, construction,
        furnishing, and equipping of an addition to the 
        central services building at Fort Snelling for
        heated storage                                          855,000
        (8) Schematic design, design development,
        and construction documents for projects
        at Duluth, St. Cloud, Jordan, Fort Snelling,
        Golden Valley, and a new record building                677,000
        (9) Design, construction, equipping, and
        furnishing of an addition to the Garrison truck
        station and related improvements                        206,000
        (10) For construction documents, construction,
        furnishing, and equipping of an addition
        to the Hastings truck station                         1,362,000
        (11) Construct, furnish, and equip a new 
        equipment storage building on a new site in 
        Gaylord to replace the existing facility                680,000
        (12) Remove asbestos from various
        department of transportation buildings statewide        200,000
        (13) Construct, furnish, and equip a new
        equipment storage building on a new site
        in Hibbing to replace the existing facility.
        Minnesota Statutes, section 16B.33, does not
        apply to this project                                 1,237,000
        (14) Design, construction, equipping, and
        furnishing of an addition to the Long 
        Prairie truck station and related improvements          215,000
        (15) Design, construction, equipping, and
        furnishing of an addition to the Forest
        Lake truck station and related improvements             451,000
        (16) Design, construction, equipping, and
        furnishing of an addition to the Erskine
        truck station and related improvements                  300,000
        (17) Design, construction, equipping, and
        furnishing of an addition to the Dilworth
        truck station and related improvements                  514,000
        (18) Construct, furnish, and equip class
        II safety rest areas in Fillmore county,
        Cook county, and Kanabec county                         120,000
        (19) Construct pole-type storage buildings
        at department of transportation locations
        throughout the state                                    350,000
        (20) Land acquisition at Fort Snelling
        next to the central services complex when
        it is made available as surplus property
        by the federal government                               200,000
        (21) Clauses (1) to (19) 
        are exempt from the requirements 
        of Minnesota Statutes, section 16B.335.
        (b) Public Safety Project                             1,185,000
        $1,185,000 is appropriated from the 
        trunk highway fund for capital 
        improvements to license exam stations, 
        grounds, and facilities at Arden Hills, 
        Eagan, and Plymouth. 
           Sec. 3.  [DESIGN-BUILD METHOD OF CONSTRUCTION.] 
           Beginning with the capital budget projects approved by law 
        in 1996, the commissioner of administration or the commissioner 
        of transportation may use a design-build method of project 
        development and construction for projects to construct new 
        vehicle and equipment storage or maintenance facilities.  
        "Design-build method of project development and construction" 
        means a project delivery system in which a single contractor is 
        responsible for both the design and the construction of the 
        project.  The commissioner of administration or the commissioner 
        of transportation may select the projects that will be 
        constructed using the design-build method.  Minnesota Statutes, 
        section 16B.33, does not apply to the projects selected.  The 
        commissioners are requested to report to the legislature on the 
        use of the design-build method, including comparative cost 
        analysis, quality of product obtained, advantages and 
        disadvantages of using this method, and the commissioners' 
        recommendations for further use of the design-build method. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective July 1, 1996. 
                                   ARTICLE 3
                         HIGHWAYS AND DRIVERS' LICENSES 
           Section 1.  Minnesota Statutes 1994, section 115A.9651, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROHIBITION.] (a) Except as provided in 
        paragraph (d), no person may distribute for sale or use in this 
        state any ink, dye, pigment, paint, or fungicide manufactured 
        after September 1, 1994, into which lead, cadmium, mercury, or 
        hexavalent chromium has been intentionally introduced.  
           (b) For the purposes of this subdivision, "intentionally 
        introduce" means to deliberately use a metal listed in paragraph 
        (a) as an element during manufacture or distribution of an item 
        listed in paragraph (a).  Intentional introduction does not 
        include the incidental presence of any of the prohibited 
        elements. 
           (c) The concentration of a listed metal in an item listed 
        in paragraph (a) may not exceed 100 parts per million. 
           (d) The prohibition on the use of lead in substances 
        utilized in marking road, street, highway, and bridge pavements 
        does not take effect until July 1, 1998. 
           Sec. 2.  Minnesota Statutes 1994, section 160.83, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [LIABILITY.] A rustic road may be maintained at a 
        level less than the minimum standards required for state-aid 
        highways, roads, and streets, but must be maintained at the 
        level required to serve anticipated traffic volumes.  Where a 
        road has been designated by resolution as a rustic road and 
        speed limits have been posted under subdivision 1, the road 
        authority with jurisdiction over the road, and its officers and 
        employees, are exempt from liability for any tort claim for 
        injury to person or property arising from travel on the rustic 
        road related to its maintenance, design, or condition if: 
           (1) the maintenance, design, or condition is consistent 
        with the anticipated use as described in subdivision 2; and 
           (2) the maintenance, design, or condition is not grossly 
        negligent. 
           Nothing in this subdivision exempts a road authority from 
        its duty to maintain bridges under chapter 165 or other 
        applicable law. 
           Sec. 3.  Minnesota Statutes 1994, section 160.85, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [INFORMATION MEETING.] Before approving or 
        denying a development agreement, the commissioner shall hold a 
        public information meeting in any municipality or county in 
        which any portion of the proposed toll facility runs.  The 
        commissioner shall determine the time and place of the 
        information meeting. 
           Sec. 4.  Minnesota Statutes 1994, section 161.085, is 
        amended to read: 
           161.085 [APPROPRIATION FROM TURNBACK ACCOUNTS.] 
           Moneys in the county turnback account and the municipal 
        turnback account are hereby appropriated annually to the 
        commissioner of transportation for the purposes of carrying out 
        the terms of sections 161.081 to 161.086 161.084. 
           Sec. 5.  [161.139] [HIGHWAY DESIGNATION COSTS.] 
           The commissioner shall not adopt a design or erect a sign 
        to mark or memorialize a highway or bridge, pursuant to 
        designation by the legislature on or after January 1, 1996, 
        unless the commissioner is assured of the availability of funds 
        from nonstate sources sufficient to pay all costs related to 
        designing, erecting, and maintaining the signs. 
           Sec. 6.  Minnesota Statutes 1994, section 161.14, is 
        amended by adding a subdivision to read: 
           Subd. 37.  [VICTORY DRIVE.] Marked trunk highway No. 22, 
        from its intersection with marked trunk highways Nos. 14 and 60 
        in the city of Mankato to its intersection with marked trunk 
        highway No. 30 in the city of Mapleton, is designated "Victory 
        Drive."  The commissioner of transportation shall adopt a 
        suitable design for marking this highway and shall erect 
        appropriate signs at locations the commissioner determines.  The 
        people of the community, having resolved to support and 
        financially back the marking of this highway, shall reimburse 
        the department for costs incurred in marking and memorializing 
        this highway. 
           Sec. 7.  Minnesota Statutes 1994, section 161.14, is 
        amended by adding a subdivision to read: 
           Subd. 38.  [VETERANS MEMORIAL HIGHWAY.] Marked trunk 
        highway No. 15, from its intersection with marked trunk highway 
        No. 60 to its intersection with the Iowa border, is designated 
        "Veterans Memorial Highway."  The commissioner of transportation 
        shall adopt a suitable design for marking this highway and shall 
        erect appropriate signs at locations the commissioner 
        determines.  The people of the community, having resolved to 
        support and financially back the marking of this highway, shall 
        reimburse the department for costs incurred in marking and 
        memorializing this highway. 
           Sec. 8.  Minnesota Statutes 1994, section 161.14, is 
        amended by adding a subdivision to read: 
           Subd. 39.  [DALE WAYRYNEN MEMORIAL HIGHWAY.] That segment 
        of marked trunk highway No. 210 located within Aitkin county is 
        designated "Dale Wayrynen Memorial Highway."  The commissioner 
        of transportation shall erect appropriate signs after adopting a 
        marking design for the signs, which suitably commemorates Dale 
        Wayrynen, posthumous recipient of the Congressional Medal of 
        Honor, for heroism displayed during the Vietnam War.  The people 
        of the community, having resolved to support and financially 
        back the marking of this highway, shall reimburse the department 
        for costs incurred in marking and memorializing this highway. 
           Sec. 9.  Minnesota Statutes 1994, section 161.36, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER TO COOPERATE WITH THE U.S. 
        GOVERNMENT.] The commissioner may cooperate with the government 
        of the United States and any agency or department thereof in the 
        construction, improvement, enhancement, and maintenance of roads 
        and bridges transportation in the state of Minnesota and may 
        comply with the provisions of the laws of the United States and 
        any rules and regulations made thereunder for the expenditure of 
        federal moneys upon such roads and bridges.  
           Sec. 10.  Minnesota Statutes 1994, section 161.36, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEDERAL AID, ACCEPTANCE; COMMISSIONER AS AGENT.] 
        The commissioner may accept federal moneys and other moneys, 
        either public or private, for and in behalf of the state of 
        Minnesota or any governmental subdivision thereof, or any 
        nonpublic organization, for the construction, improvement, 
        enhancement, or maintenance of roads and bridges transportation 
        upon such terms and conditions as are or may be prescribed by 
        the laws of the United States and any rules or regulations made 
        thereunder, and is authorized to act as an agent of any that 
        governmental subdivision of the state of Minnesota or nonpublic 
        organization upon the its request of such subdivision in 
        accepting the moneys in its behalf for road or 
        bridge transportation purposes, in acquiring right-of-way 
        therefor, and in contracting for the construction, 
        improvement, enhancement, or maintenance of roads or 
        bridges transportation financed either in whole or in part by 
        federal moneys.  The governing body of any such subdivision or 
        nonpublic organization is authorized to designate the 
        commissioner as its agent for such purposes and to enter into an 
        agreement with the commissioner prescribing the terms and 
        conditions of the agency in accordance herewith and with federal 
        laws, rules and regulations.  
           Sec. 11.  Minnesota Statutes 1994, section 161.36, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMMISSIONER AS AGENT IN CERTAIN CASES.] The 
        commissioner may act as the agent of any political subdivision 
        of the state, or any nonpublic organization, as provided herein, 
        for the construction of roads and bridges transportation toward 
        the construction of which no federal aid is available in the 
        event that the construction adjoins, is connected, or in the 
        judgment of the commissioner can be best and most economically 
        performed in connection with construction upon which federal aid 
        is available and upon which the commissioner is then acting as 
        agent. 
           Sec. 12.  Minnesota Statutes 1994, section 161.36, 
        subdivision 4, is amended to read: 
           Subd. 4.  [STATE LAWS TO GOVERN.] All contracts for the 
        construction, improvement, enhancement, or maintenance of roads 
        or bridges transportation made by the commissioner as the agent 
        of any governmental subdivision, or any nonpublic organization, 
        shall be made pursuant to the laws of the state of Minnesota 
        governing the making of contracts for the construction, 
        improvement, enhancement, and maintenance of roads and 
        bridges transportation on the trunk highway system of the state; 
        provided, where the construction, improvement, enhancement, or 
        maintenance of any road or bridge transportation is financed 
        wholly with federal moneys, the commissioner as the agent of any 
        the governmental subdivision or nonpublic organization may let 
        contracts in the manner prescribed by the federal authorities 
        acting under the laws of the United States and any rules or 
        regulations made thereunder, notwithstanding any state law to 
        the contrary.  
           Sec. 13.  Minnesota Statutes 1994, section 161.46, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LUMP SUM SETTLEMENTS.] The commissioner may 
        enter into agreements with a utility for the relocation of 
        utility facilities providing for the payment by the state of a 
        lump sum based on the estimated cost of relocation when the lump 
        sum so agreed upon does not exceed $25,000 $100,000. 
           Sec. 14.  Minnesota Statutes 1994, section 161.53, is 
        amended to read: 
           161.53 [RESEARCH ACTIVITIES.] 
           The commissioner may set aside for transportation research 
        in each fiscal year up to one two percent of the total amount of 
        all funds appropriated to the commissioner other than county 
        state-aid and municipal state-aid highway funds for 
        transportation research including public and private research 
        partnerships.  The commissioner shall spend this money for (1) 
        research to improve the design, construction, maintenance, 
        management, and environmental compatibility of transportation 
        systems; (2) research on transportation policies that enhance 
        energy efficiency and economic development; (3) programs for 
        implementing and monitoring research results; and (4) 
        development of transportation education and outreach 
        activities.  Of all funds appropriated to the commissioner other 
        than state-aid funds, the commissioner shall spend 0.1 percent, 
        but not exceeding $800,000 in any fiscal year, for research and 
        related activities performed by the center for transportation 
        studies of the University of Minnesota.  The center shall 
        establish a technology transfer and training center for 
        Minnesota transportation professionals.  
           Sec. 15.  Minnesota Statutes 1994, section 162.08, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PURPOSES; OTHER USES OF MUNICIPAL ACCOUNT 
        ALLOCATION.] (a) Except as provided in subdivision 3, money so 
        apportioned and allocated to each county shall be used for aid 
        in the establishment, location, construction, reconstruction, 
        improvement, and maintenance of the county state-aid highway 
        system within each county, including the expense of sidewalks, 
        commissioner-approved signals and safety devices on county 
        state-aid highways, and systems that permit an emergency vehicle 
        operator to activate a green traffic signal for the emergency 
        vehicle; provided, that in the event of hardship, or in the 
        event that the county state-aid highway system of any county is 
        improved to the standards set forth in the commissioner's rules, 
        a portion of the money apportioned other than the money 
        allocated for expenditures within cities having a population of 
        less than 5,000, may be used on other roads within the county 
        with the consent and in accordance with the commissioner's rules.
           (b) If the portion of the county state-aid highway system 
        lying within cities having a population of less than 5,000 is 
        improved to the standard set forth in the commissioner's rules, 
        a portion of the money credited to the municipal account may be 
        used on other county highways or other streets lying within such 
        cities.  Upon the authorization of the commissioner, a county 
        may expend accumulated municipal account funds on county 
        state-aid highways within the county outside of cities having a 
        population of less than 5,000.  The commissioner shall authorize 
        the expenditure if: 
           (a) (1) the county submits a written request to the 
        commissioner and holds a hearing within 30 days of the request 
        to receive and consider any objections by the governing bodies 
        of cities within the county having a population of less than 
        5,000; and 
           (b) (2) no written objection is filed with the commissioner 
        by any such city within 14 days of that hearing as provided in 
        this subdivision. 
           The county shall notify all of the cities of the public 
        hearing by certified mail and shall notify the commissioner in 
        writing of the results of the hearing and any objections to the 
        use of the funds as requested by the county. 
           (c) If, within 14 days of the hearing under paragraph (b), 
        a city having a population of less than 5,000 files a written 
        objection with the commissioner identifying a specific county 
        state-aid highway within the city which is requested for 
        improvement, the commissioner shall investigate the nature of 
        the requested improvement.  Notwithstanding paragraph (b) 
        clause (b) (2), the commissioner may authorize the expenditure 
        requested by the county if:  
           (1) the identified highway is not deficient in meeting 
        minimum state-aid street standards; or 
           (2) the county shows evidence that the identified highway 
        has been programmed for construction in the county's five-year 
        capital improvement budget in a manner consistent with the 
        county's transportation plan; or 
           (3) there are conditions created by or within the city and 
        beyond the control of the county that prohibit programming or 
        constructing the identified highway. 
           (d) Notwithstanding any contrary provisions of paragraph 
        (b) or (c), accumulated balances in excess of two years of 
        municipal account apportionments may be spent on projects 
        located outside of municipalities under 5,000 population when 
        approved solely by resolution of the county board.  
           (e) Authorization by the commissioner for use of municipal 
        account funds on county state-aid highways outside of cities 
        having a population of less than 5,000 shall be applicable only 
        to the county's accumulated and current year allocation.  Future 
        municipal account allocations shall be used as directed by law 
        unless subsequent requests are made by the county and 
        approved by the commissioner, or approved by resolution of the 
        county board, as applicable, in accordance with the applicable 
        provisions of this section. 
           Sec. 16.  Minnesota Statutes 1994, section 162.08, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ADVANCES OTHER THAN TO MUNICIPAL ACCOUNT.] Any 
        county may make advances from any available funds for the 
        purpose of expediting the construction, reconstruction, 
        improvement and maintenance of its county state-aid highway 
        system.  Total advances, together with any advances to the 
        municipal account, as provided in subdivisions 5 and 6, shall 
        never exceed 40 percent of the county's last apportionment 
        preceding the first advance.  Advances made by any county as 
        provided herein, other than advances made to the municipal 
        account, shall be repaid out of subsequent apportionments to the 
        county's maintenance or construction account in accordance with 
        the commissioner's rules.  
           Sec. 17.  Minnesota Statutes 1994, section 162.14, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ADVANCES.] Any such city, except cities of the 
        first class, may make advances from any funds available to it 
        for the purpose of expediting the construction, reconstruction, 
        improvement, or maintenance of its municipal state-aid street 
        system; provided that such advances shall not exceed the city's 
        total estimated apportionment for the three years following the 
        year the advance is made.  Advances made by any such city shall 
        be repaid out of subsequent apportionments made to such city in 
        accordance with the commissioner's rules. 
           Sec. 18.  Minnesota Statutes 1994, section 168.013, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION; CANCELLATION; EXCESSIVE GROSS 
        WEIGHTS FORBIDDEN.] The applicant for all licenses based on 
        gross weight shall state in writing upon oath, the unloaded 
        weight of the motor vehicle, trailer or semitrailer and the 
        maximum load the applicant proposes to carry thereon, the sum of 
        which shall constitute the gross weight upon which the license 
        tax shall be paid, but in no case shall the declared gross 
        weight upon which the tax is paid be less than 1-1/4 times the 
        declared unloaded weight of the motor vehicle, trailer or 
        semitrailer to be registered, except recreational vehicles taxed 
        under subdivision 1g, school buses taxed under subdivision 18 
        and tow trucks or towing vehicles defined in section 169.01, 
        subdivision 52.  The gross weight of a tow truck or towing 
        vehicle is the actual weight of the tow truck or towing vehicle 
        fully equipped, but does not include the weight of a wrecked or 
        disabled vehicle towed or drawn by the tow truck or towing 
        vehicle. 
           The gross weight of no motor vehicle, trailer or 
        semitrailer shall exceed the gross weight upon which the license 
        tax has been paid by more than four percent or 1,000 pounds, 
        whichever is greater. 
           The gross weight of the motor vehicle, trailer or 
        semitrailer for which the license tax is paid shall be indicated 
        by a distinctive character on the license plate or plates except 
        as provided in subdivision 12 and the plate or plates shall be 
        kept clean and clearly visible at all times. 
           The owner, driver, or user of a motor vehicle, trailer or 
        semitrailer upon conviction for transporting a gross weight in 
        excess of the gross weight for which it was registered or for 
        operating a vehicle with an axle weight exceeding the maximum 
        lawful axle load weight shall be guilty of a misdemeanor and be 
        subject to increased registration or reregistration according to 
        the following schedule: 
           (1) The owner, driver or user of a motor vehicle, trailer 
        or semitrailer upon conviction for transporting a gross weight 
        in excess of the gross weight for which it is registered by more 
        than four percent or 1,000 pounds, whichever is greater, but 
        less than 25 percent or for operating or using a motor vehicle, 
        trailer or semitrailer with an axle weight exceeding the maximum 
        lawful axle load as provided in section 169.825 by more than 
        four percent or 1,000 pounds, whichever is greater, but less 
        than 25 percent, in addition to any penalty imposed for the 
        misdemeanor shall apply to the registrar to increase the 
        authorized gross weight to be carried on the vehicle to a weight 
        equal to or greater than the gross weight the owner, driver, or 
        user was convicted of carrying, the increase computed for the 
        balance of the calendar year on the basis of 1/12 of the annual 
        tax for each month remaining in the calendar year beginning with 
        the first day of the month in which the violation occurred.  If 
        the additional registration tax computed upon that weight, plus 
        the tax already paid, amounts to more than the regular tax for 
        the maximum gross weight permitted for the vehicle under section 
        169.825, that additional amount shall nevertheless be paid into 
        the highway fund, but the additional tax thus paid shall not 
        permit the vehicle to be operated with a gross weight in excess 
        of the maximum legal weight as provided by section 169.825.  
        Unless the owner within 30 days after a conviction shall apply 
        to increase the authorized weight and pay the additional tax as 
        provided in this section, the registrar shall revoke the 
        registration on the vehicle and demand the return of the 
        registration card and plates issued on that registration. 
           (2) The owner or driver or user of a motor vehicle, trailer 
        or semitrailer upon conviction for transporting a gross weight 
        in excess of the gross weight for which the motor vehicle, 
        trailer or semitrailer was registered by 25 percent or more, or 
        for operating or using a vehicle or trailer with an axle weight 
        exceeding the maximum lawful axle load as provided in section 
        169.825 by 25 percent or more, in addition to any penalty 
        imposed for the misdemeanor, shall have the reciprocity 
        privileges on the vehicle involved if the vehicle is being 
        operated under reciprocity canceled by the registrar, or if the 
        vehicle is not being operated under reciprocity, the certificate 
        of registration on the vehicle operated shall be canceled by the 
        registrar and the registrar shall demand the return of the 
        registration certificate and registration plates.  The registrar 
        may not cancel the registration or reciprocity privileges for 
        any vehicle found in violation of seasonal load restrictions 
        imposed under section 169.87 unless the axle weight exceeds the 
        year-round weight limit for the highway on which the violation 
        occurred.  The registrar may investigate any allegation of gross 
        weight violations and demand that the operator show cause why 
        all future operating privileges in the state should not be 
        revoked unless the additional tax assessed is paid. 
           (3) Clause (1) does not apply to the first haul of 
        unprocessed or raw farm products or unfinished forest products, 
        when the registered gross weight is not exceeded by more than 
        ten percent.  For purposes of this clause, "first haul" means (1)
        the first, continuous transportation of unprocessed or raw farm 
        products from the place of production or on-farm storage site to 
        any other location within 50 miles of the place of production or 
        on-farm storage site, or (2) the first, continuous 
        transportation of unfinished forest products from the place of 
        production to the place of first unloading. 
           (4) When the registration on a motor vehicle, trailer or 
        semitrailer is revoked by the registrar according to provisions 
        of this section, the vehicle shall not be operated on the 
        highways of the state until it is registered or reregistered, as 
        the case may be, and new plates issued, and the registration fee 
        shall be the annual tax for the total gross weight of the 
        vehicle at the time of violation.  The reregistration pursuant 
        to this subdivision of any vehicle operating under reciprocity 
        agreements pursuant to section 168.181 or 168.187 shall be at 
        the full annual registration fee without regard to the 
        percentage of vehicle miles traveled in this state.  
           Sec. 19.  Minnesota Statutes 1994, section 169.07, is 
        amended to read: 
           169.07 [UNAUTHORIZED SIGNS.] 
           No person shall place, maintain, or display upon or in view 
        of any highway any unauthorized sign, signal, marking, or device 
        which purports to be or is an imitation of or resembles an 
        official traffic-control device or railroad sign or signal, or 
        which attempts to direct the movement of traffic, or which hides 
        from view or interferes with the effectiveness of any official 
        traffic-control device or any railroad sign or signal, and no 
        person shall place or maintain, nor shall any public authority 
        permit, upon any highway any traffic sign or signal bearing 
        thereon any commercial advertising.  This shall not be deemed to 
        prohibit (1) the erection upon private property adjacent to 
        highways of signs giving useful directional information and of a 
        type that cannot be mistaken for official signs, or (2) the 
        temporary placement by auctioneers licensed or exempt from 
        licensing under section 330.01, for a period of not more than 
        eight consecutive hours, on or adjacent to the right-of-way of a 
        highway not more than four signs directing motorists to the 
        location of an auction.  The signs must conform to standards for 
        size, content, placement, and location for such signs 
        promulgated by the commissioner of transportation.  The rules 
        may require a permit for each such sign but no fee may be 
        charged for the permit.  
           Every such prohibited sign, signal, or marking is hereby 
        declared to be a public nuisance, and the authority having 
        jurisdiction over the highways is hereby empowered to remove the 
        same, or cause it to be removed, without notice. 
           Sec. 20.  Minnesota Statutes 1994, section 169.82, 
        subdivision 3, is amended to read: 
           Subd. 3.  [HITCHES; CHAINS; CABLES.] (a) Every trailer or 
        semitrailer must be hitched to the towing motor vehicle by a 
        device approved by the commissioner of public safety. 
           (b) Every trailer and semitrailer must be equipped with 
        safety chains or cables permanently attached to the trailer 
        except in cases where the coupling device is a regulation fifth 
        wheel and kingpin assembly approved by the commissioner of 
        public safety.  In towing, the chains or cables must be carried 
        through a ring on the towbar and attached to the towing attached 
        to the vehicles near the points of bumper attachments to the 
        chassis of each vehicle, and must be of sufficient strength to 
        control the trailer in the event of failure of the towing 
        device.  The length of chain or cable must be no more than 
        necessary to permit free turning of the vehicles. 
           (c) This subdivision does not apply to towed implements of 
        husbandry. 
           No person may be charged with a violation of this section 
        solely by reason of violating a maximum speed prescribed in 
        section 169.145 or 169.67. 
           Sec. 21.  Minnesota Statutes 1994, section 169.85, is 
        amended to read: 
           169.85 [WEIGHING; PENALTY.] 
           The driver of a vehicle which has been lawfully stopped may 
        be required by a peace officer to submit the vehicle and load to 
        a weighing by means of portable or stationary scales, and the 
        peace officer may require that the vehicle be driven to the 
        nearest available scales if the distance to the scales is no 
        further than five miles, or if the distance from the point where 
        the vehicle is stopped to the vehicle's destination is not 
        increased by more than ten miles as a result of proceeding to 
        the nearest available scales.  Official traffic control devices 
        as authorized by section 169.06 may be used to direct the driver 
        to the nearest scale.  When a truck weight enforcement operation 
        is conducted by means of portable or stationary scales and signs 
        giving notice of the operation are posted within the highway 
        right-of-way and adjacent to the roadway within two miles of the 
        operation, the driver of a truck or combination of vehicles 
        registered for or weighing in excess of 12,000 pounds, and the 
        driver of a charter bus, except a bus registered in Minnesota, 
        shall proceed to the scale site and submit the vehicle to 
        weighing and inspection. 
           Upon weighing a vehicle and load, as provided in this 
        section, an officer may require the driver to stop the vehicle 
        in a suitable place and remain standing until a portion of the 
        load is removed that is sufficient to reduce the gross weight of 
        the vehicle to the limit permitted under section 169.825.  A 
        suitable place is a location where loading or tampering with the 
        load is not prohibited by federal, state, or local law, rule or 
        ordinance.  A driver may be required to unload a vehicle only if 
        the weighing officer determines that (a) on routes subject to 
        the provisions of section 169.825, the weight on an axle exceeds 
        the lawful gross weight prescribed by section 169.825, by 2,000 
        pounds or more, or the weight on a group of two or more 
        consecutive axles in cases where the distance between the 
        centers of the first and last axles of the group under 
        consideration is ten feet or less exceeds the lawful gross 
        weight prescribed by section 169.825, by 4,000 pounds or more; 
        or (b) on routes designated by the commissioner in section 
        169.832, subdivision 11, the overall weight of the vehicle or 
        the weight on an axle or group of consecutive axles exceeds the 
        maximum lawful gross weights prescribed by section 169.825; or 
        (c) the weight is unlawful on an axle or group of consecutive 
        axles on a road restricted in accordance with section 169.87.  
        Material unloaded must be cared for by the owner or driver of 
        the vehicle at the risk of the owner or driver. 
           A driver of a vehicle who fails or refuses to stop and 
        submit the vehicle and load to a weighing as required in this 
        section, or who fails or refuses, when directed by an officer 
        upon a weighing of the vehicle, to stop the vehicle and 
        otherwise comply with the provisions of this section, is guilty 
        of a misdemeanor. 
           Sec. 22.  Minnesota Statutes 1995 Supplement, section 
        169.862, is amended to read: 
           169.862 [PERMITS FOR WIDE LOADS OF BALED AGRICULTURAL 
        PRODUCTS.] 
           The commissioner of transportation with respect to highways 
        under the commissioner's jurisdiction, and local authorities 
        with respect to highways under their jurisdiction, may issue an 
        annual permit to enable a vehicle carrying round bales of hay, 
        straw, or cornstalks, with a total outside width of the vehicle 
        or the load not exceeding 11-1/2 feet, to be operated on public 
        streets and highways.  The commissioner of transportation and 
        local authorities may issue an annual permit to enable a 
        vehicle, having a maximum width of 102 inches, carrying a first 
        haul of square bales of straw, each bale having a minimum size 
        of four feet by four feet by eight feet, with a total outside 
        width of the load not exceeding 12 feet, to be operated on 
        public streets and highways between August 1 and December March 
        1 within 35 miles of the border between this state and the state 
        of North Dakota.  The commissioner of transportation and local 
        authorities may issue an annual permit to enable a vehicle 
        carrying square bales of hay, each with an outside dimension of 
        not less than three feet by four feet by seven feet, with a 
        total height of the loaded vehicle not exceeding 15 feet, to be 
        operated on those public streets and highways designated in the 
        permit.  Permits issued under this section are governed by the 
        applicable provisions of section 169.86 except as otherwise 
        provided herein and, in addition, carry the following 
        restrictions:  
           (a) The vehicles may not be operated between sunset and 
        sunrise, when visibility is impaired by weather, fog, or other 
        conditions rendering persons and vehicles not clearly visible at 
        a distance of 500 feet, or on Sunday from noon until sunset, or 
        on the days the following holidays are observed:  New Year's 
        Day, Memorial Day, Independence Day, Labor Day, Thanksgiving 
        Day, and Christmas Day.  
           (b) The vehicles may not be operated on interstate highways.
           (c) The vehicles may not be operated on a trunk highway 
        with a pavement less than 24 feet wide.  
           (d) A vehicle operated under the permit must be equipped 
        with a retractable or removable mirror on the left side so 
        located that it will reflect to the driver a clear view of the 
        highway for a distance of at least 200 feet to the rear of the 
        vehicle.  
           (e) A vehicle operated under the permit must display red, 
        orange, or yellow flags, 18 inches square, as markers at the 
        front and rear and on both sides of the load.  The load must be 
        securely bound to the transporting vehicle.  
           (f) Farm vehicles not for hire carrying round baled hay 
        less than 20 miles are exempt from the requirement to obtain a 
        permit.  All other requirements of this section apply to 
        vehicles transporting round baled hay. 
           The fee for the permit is $24. 
           Sec. 23.  Minnesota Statutes 1994, section 169.871, is 
        amended by adding a subdivision to read: 
           Subd. 1b.  [CIVIL PENALTY FOR FIRST TWO VIOLATIONS.] 
        Notwithstanding subdivision 1, clauses (a) to (e), a civil 
        penalty under subdivision 1 for a violation in a motor vehicle 
        in the course of a first haul as defined in section 168.013, 
        subdivision 3, clause (3), of a weight limit imposed under 
        sections 169.825, 169.832 to 169.851, and 169.87 that is not 
        preceded by two or more violations of the gross weight limits in 
        those sections in that motor vehicle within the previous 12 
        months, may not exceed $150. 
           Sec. 24.  Minnesota Statutes 1995 Supplement, section 
        171.04, subdivision 1, is amended to read: 
           Subdivision 1.  [PERSONS NOT ELIGIBLE.] The department 
        shall not issue a driver's license hereunder: 
           (1) To any person who is under the age of 16 years; to any 
        person under 18 years unless such person shall have successfully 
        completed a course in driver education, including both classroom 
        and behind-the-wheel instruction, approved by the state board of 
        education for courses offered through the public schools, or, in 
        the case of a course offered by a private, commercial driver 
        education school or institute, by the department of public 
        safety; except when such person has completed a course of driver 
        education in another state or has a previously issued valid 
        license from another state or country; nor to any person under 
        18 years unless the application of license is approved by either 
        parent when both reside in the same household as the minor 
        applicant, otherwise the parent or spouse of the parent having 
        custody or with whom the minor is living in the event there is 
        no court order for custody, or guardian having the custody of 
        such minor, or in the event a person under the age of 18 has no 
        living father, mother or guardian, the license shall not be 
        issued to such person unless the application therefor is 
        approved by the person's employer.  Driver education courses 
        offered in any public school shall be open for enrollment to 
        persons between the ages of 15 and 18 years residing in the 
        school district or attending school therein.  Any public school 
        offering driver education courses may charge an enrollment fee 
        for the driver education course which shall not exceed the 
        actual cost thereof to the public school and the school 
        district.  The approval required herein shall contain a 
        verification of the age of the applicant; 
           (2) To any person who is under the age of 18 years unless 
        the person has applied for, been issued, and possessed the 
        appropriate instruction permit for a minimum of six months; 
           (3) To any person whose license has been suspended during 
        the period of suspension except that a suspended license may be 
        reinstated during the period of suspension upon the licensee 
        furnishing proof of financial responsibility in the same manner 
        as provided in the Minnesota no-fault automobile insurance act; 
           (3) (4) To any person whose license has been revoked except 
        upon furnishing proof of financial responsibility in the same 
        manner as provided in the Minnesota no-fault automobile 
        insurance act and if otherwise qualified; 
           (4) (5) To any person who is a drug dependent person as 
        defined in section 254A.02, subdivision 5; 
           (5) (6) To any person who has been adjudged legally 
        incompetent by reason of mental illness, mental deficiency, or 
        inebriation, and has not been restored to capacity, unless the 
        department is satisfied that such person is competent to operate 
        a motor vehicle with safety to persons or property; 
           (6) (7) To any person who is required by this chapter to 
        take an examination, unless such person shall have successfully 
        passed such examination; 
           (7) (8) To any person who is required under the provisions 
        of the Minnesota no-fault automobile insurance act of this state 
        to deposit proof of financial responsibility and who has not 
        deposited such proof; 
           (8) (9) To any person when the commissioner has good cause 
        to believe that the operation of a motor vehicle on the highways 
        by such person would be inimical to public safety or welfare; 
           (9) (10) To any person when, in the opinion of the 
        commissioner, such person is afflicted with or suffering from 
        such physical or mental disability or disease as will affect 
        such person in a manner to prevent the person from exercising 
        reasonable and ordinary control over a motor vehicle while 
        operating the same upon the highways; nor to a person who is 
        unable to read and understand official signs regulating, 
        warning, and directing traffic; 
           (10) (11) To a child for whom a court has ordered denial of 
        driving privileges under section 260.191, subdivision 1, or 
        260.195, subdivision 3a, until the period of denial is 
        completed; or 
           (11) (12) To any person whose license has been canceled, 
        during the period of cancellation. 
           Sec. 25.  Minnesota Statutes 1994, section 171.05, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [PERMIT FOR SIX MONTHS.] An applicant who has 
        applied for and received an instruction permit pursuant to 
        subdivision 2 must possess the instruction permit for not less 
        than six months before qualifying for a driver's license. 
           Sec. 26.  Minnesota Statutes 1994, section 173.02, 
        subdivision 6, is amended to read: 
           Subd. 6.  [VARIOUS SIGNS AND NOTICES DEFINED.] Directional 
        and other official signs and notices shall mean: 
           (a) "Official signs and notices" mean signs and notices 
        erected and maintained by public officers or public agencies 
        within their territorial jurisdiction and pursuant to and in 
        accordance with direction or authorization contained in federal 
        or state law for the purposes of carrying out an official duty 
        or responsibility.  Historical markers authorized by state law 
        and erected by state or local governmental agencies or nonprofit 
        historical societies and, star city signs erected under section 
        173.085, and municipal identification entrance signs erected in 
        accordance with section 173.025 may be considered official signs.
           (b) "Public utility signs" mean warning signs, notices, or 
        markers which are customarily erected and maintained by publicly 
        or privately owned public utilities, as essential to their 
        operations.  
           (c) "Service club and religious notices" mean signs and 
        notices, not exceeding eight square feet in advertising area, 
        whose erection is authorized by law, relating to meetings and 
        location of nonprofit service clubs or charitable associations, 
        or religious services.  
           (d) "Directional signs" means signs containing directional 
        information about public places owned or operated by federal, 
        state, or local governments or their agencies, publicly or 
        privately owned natural phenomena, historic, cultural, 
        scientific, educational, and religious sites, and areas of 
        natural scenic beauty or naturally suited for outdoor 
        recreation, deemed to be in the interest of the traveling 
        public.  To qualify for directional signs, privately owned 
        attractions must be nationally or regionally known, and of 
        outstanding interest to the traveling public.  
           (e) All definitions in this subdivision are intended to be 
        in conformity with the national standards for directional and 
        other official signs.  
           Sec. 27.  [173.025] [MUNICIPAL IDENTIFICATION SIGNS.] 
           A local road authority may erect a municipal identification 
        entrance sign within the right-of-way of a trunk highway with 
        the written permission of the commissioner.  Municipal 
        identification entrance signs erected without the written 
        permission of the commissioner are prohibited. 
           Sec. 28.  Minnesota Statutes 1994, section 173.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORMS; CONTENT; IDENTIFYING NUMBER.] 
        Application for permits or renewals thereof for the placement 
        and maintenance of advertising devices within scenic areas shall 
        be on forms prescribed by the commissioner and shall contain 
        such information as the commissioner may require.  No 
        advertising device shall be placed without the consent of the 
        owner or occupant of the land, and adequate proof of such 
        consent shall be submitted to the commissioner at the time 
        application is made for such permits or renewals.  There shall 
        be furnished with each permit an identifying number which shall 
        be affixed by the permit holder to the advertising device in 
        accordance with rules of the commissioner of transportation. 
           Sec. 29.  Minnesota Statutes 1994, section 174.04, is 
        amended to read: 
           174.04 [FINANCIAL ASSISTANCE; APPLICATIONS; DISBURSEMENT.] 
           Subdivision 1.  [REVIEW OF APPLICATION.] Any state agency 
        which receives an application from a regional development 
        commission, metropolitan council, public transit commission, 
        airport commission, port authority or other political 
        subdivision of the state, or any nonpublic organization, for 
        financial assistance for transportation planning, capital 
        expenditures or operations to any state or federal agency, shall 
        first submit the application to the commissioner of 
        transportation.  The commissioner shall review the application 
        to determine whether it contains matters that substantially 
        affect the statewide transportation plan and priorities.  If the 
        application does not contain such matters, the commissioner 
        shall within 15 days after receipt return the application to the 
        applicant political subdivision or nonpublic organization for 
        forwarding to the appropriate agency.  If the application 
        contains such matters, the commissioner shall review and comment 
        on the application as being consistent with the plan and 
        priorities.  The commissioner shall return the application 
        together with comments within 45 days after receipt to the 
        applicant political subdivision or nonpublic organization for 
        forwarding with the commissioner's comments to the appropriate 
        agency. 
           Subd. 2.  [DESIGNATED AGENT.] A regional development 
        commission, metropolitan council, public transit commission, 
        airport commission, port authority, or any other political 
        subdivision of the state, or any nonpublic organization, may 
        designate the commissioner as its agent to receive and disburse 
        funds by entering into an agreement with the commissioner 
        prescribing the terms and conditions of the receipt and 
        expenditure of the funds in accordance with federal and state 
        laws, rules, and regulations. 
           Subd. 3.  [EXCEPTIONS.] The provisions of this section 
        shall not be construed as altering or amending in any way the 
        funding procedures specified in section 161.36, 360.016 or 
        360.0161. 
           Sec. 30.  Minnesota Statutes 1995 Supplement, section 
        221.0355, subdivision 5, is amended to read: 
           Subd. 5.  [HAZARDOUS WASTE TRANSPORTERS.] (a) A carrier 
        with its principal place of business in Minnesota or who 
        designates Minnesota as its base state shall file a disclosure 
        statement with and obtain a permit from the commissioner that 
        specifically authorizes the transportation of hazardous waste 
        before transporting a hazardous waste in Minnesota.  A carrier 
        that designates another participating state as its base state 
        shall file a disclosure statement with and obtain a permit from 
        that state that specifically authorizes the transportation of 
        hazardous waste before transporting a hazardous waste in 
        Minnesota.  A registration is valid for one year from the date a 
        notice of registration form is issued and a permit is valid for 
        three years from the date issued or until a carrier fails to 
        renew its registration, whichever occurs first. 
           (b) A disclosure statement must include the information 
        contained in part III of the uniform application.  A person who 
        has direct management responsibility for a carrier's hazardous 
        waste transportation operations shall submit a full set of the 
        person's fingerprints, with the carrier's disclosure statement, 
        for identification purposes and to enable the commissioner to 
        determine whether the person has a criminal record.  The 
        commissioner shall send the person's fingerprints to the Federal 
        Bureau of Investigation and shall request the bureau to conduct 
        a check of the person's criminal record.  The commissioner shall 
        not issue a notice of registration or permit to a hazardous 
        waste transporter who has not made a full and accurate 
        disclosure of the required information or paid the fees required 
        by this subdivision.  Making a materially false or misleading 
        statement in a disclosure statement is prohibited. 
           (c) The commissioner shall assess a carrier the actual 
        costs incurred by the commissioner for conducting the uniform 
        program's required investigation of the information contained in 
        a disclosure statement. 
           (d) A permit under this subdivision becomes a license under 
        section 221.035, subdivision 1, on August 1, 1996 1997, and is 
        subject to the provisions of section 221.035 until it expires. 
           Sec. 31.  Minnesota Statutes 1995 Supplement, section 
        221.0355, subdivision 15, is amended to read: 
           Subd. 15.  [HAZARDOUS WASTE LICENSES.] (a) From October 1, 
        1994, until August 1, 1996 1997, the commissioner shall not 
        register hazardous material transporters under section 221.0335 
        or license hazardous waste transporters under section 221.035.  
        A person who is licensed under section 221.035 need not obtain a 
        permit under subdivision 4 or 5 for the transportation of 
        hazardous waste in Minnesota, until the person's license has 
        expired.  A carrier wishing to transport hazardous waste in 
        another participating state shall obtain a permit under the 
        uniform program authorizing the transportation. 
           (b) The commissioner may refund fees paid under section 
        221.035, minus a proportional amount calculated on a monthly 
        basis for each month that a hazardous waste transporter license 
        was valid, to a person who was issued a hazardous waste 
        transporter license after May 5, 1994, who applied for a permit 
        authorizing the transportation of hazardous waste under 
        subdivisions 4 and 5 before October 1, 1994, and who was 
        subsequently issued that permit under the uniform program. 
           Sec. 32.  Minnesota Statutes 1994, section 222.37, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [USE REQUIREMENTS.] Any water power, 
        telegraph, telephone, pneumatic tube, pipeline, community 
        antenna television, cable communications or electric light, 
        heat, or power company, or fire department may use public roads 
        for the purpose of constructing, using, operating, and 
        maintaining lines, subways, canals, or conduits, hydrants, or 
        dry hydrants, for their business, but such lines shall be so 
        located as in no way to interfere with the safety and 
        convenience of ordinary travel along or over the same; and, in 
        the construction and maintenance of such line, subway, canal, or 
        conduit, hydrants, or dry hydrants, the company shall be subject 
        to all reasonable regulations imposed by the governing body of 
        any county, town or city in which such public road may be.  If 
        the governing body does not require the company to obtain a 
        permit, a company shall notify the governing body of any county, 
        town, or city having jurisdiction over a public road prior to 
        the construction or major repair, involving extensive excavation 
        on the road right-of-way, of the company's equipment along, 
        over, or under the public road, unless the governing body waives 
        the notice requirement.  A waiver of the notice requirement must 
        be renewed on an annual basis.  For emergency repair a company 
        shall notify the governing body as soon as practical after the 
        repair is made.  Nothing herein shall be construed to grant to 
        any person any rights for the maintenance of a telegraph, 
        telephone, pneumatic tube, community antenna television system, 
        cable communications system, or light, heat, or power system, or 
        hydrant system within the corporate limits of any city until 
        such person shall have obtained the right to maintain such 
        system within such city or for a period beyond that for which 
        the right to operate such system is granted by such city. 
           Sec. 33.  Laws 1994, chapter 589, section 8, is amended to 
        read: 
           Sec. 8.  [REPEALER.] 
           Minnesota Statutes 1992, section 221.033, subdivision 4, is 
        repealed.  Section 5 is repealed effective August 1, 1996 1997. 
           Sec. 34.  [REPEALER.] 
           Minnesota Statutes 1994, sections 161.086; and 161.115, 
        subdivision 262, are repealed.  
           Sec. 35.  [EFFECTIVE DATE.] 
           Sections 24 and 25 are effective February 1, 1997.  
        Sections 5 to 8 are effective the day following final 
        enactment.  Section 14 is effective July 1, 1996. 
                                   ARTICLE 4
                           MOTOR VEHICLE REGISTRATION 
           Section 1.  Minnesota Statutes 1994, section 168.042, 
        subdivision 8, is amended to read: 
           Subd. 8.  [REISSUANCE OF REGISTRATION PLATES.] (a) The 
        commissioner shall rescind the impoundment order of a person 
        subject to an order under this section, other than the violator, 
        if a: 
           (1) the violator had a valid driver's license on the date 
        of the violation and the person subject to an impoundment order 
        under this section, other than the violator, files with the 
        commissioner an acceptable sworn statement containing the 
        following information: 
           (1) (i) that the person is the registered owner of the 
        vehicle from which the plates have been impounded under this 
        section; 
           (2) (ii) that the person is the current owner and possessor 
        of the vehicle used in the violation; 
           (3) (iii) the date on which the violator obtained the 
        vehicle from the registered owner; 
           (4) (iv) the residence addresses of the registered owner 
        and the violator on the date the violator obtained the vehicle 
        from the registered owner; 
           (5) (v) that the person was not a passenger in the vehicle 
        at the time of the violation; and 
           (6) (vi) that the person knows that the violator may not 
        drive, operate, or be in physical control of a vehicle without a 
        valid driver's license; or 
           (2) the violator did not have a valid driver's license on 
        the date of the violation and the person made a report to law 
        enforcement before the violation stating that the vehicle had 
        been taken from the person's possession or was being used 
        without permission.  
           (b) The commissioner may not rescind the impoundment order 
        nor reissue registration plates to a registered owner if the 
        owner knew or had reason to know that the violator did not have 
        a valid driver's license on the date the violator obtained the 
        vehicle from the owner. A person who has failed to make a report 
        as provided in paragraph (a), clause (2), may be issued special 
        registration plates under subdivision 12 for a period of one 
        year from the effective date of the impoundment order.  At the 
        next registration renewal following this period, the person may 
        apply for regular registration plates. 
           (c) If the order is rescinded, the owner shall receive new 
        registration plates at no cost, if the plates were seized and 
        destroyed. 
           Sec. 2.  Minnesota Statutes 1994, section 168.042, is 
        amended by adding a subdivision to read: 
           Subd. 13a.  [ACQUIRING ANOTHER VEHICLE.] If during the 
        effective period of the plate impoundment the violator applies 
        to the commissioner for registration plates for any vehicle, the 
        commissioner shall not issue registration plates unless the 
        violator qualifies for special registration plates under 
        subdivision 12 and unless the plates issued are special plates 
        as described in subdivision 12. 
           Sec. 3.  Minnesota Statutes 1994, section 168.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AMATEUR RADIO STATION LICENSEE; SPECIAL LICENSE 
        PLATES.] Any applicant who is an owner or joint owner of a 
        passenger automobile, van or pickup truck, or a self-propelled 
        recreational vehicle, and a resident of this state, and who 
        holds an official amateur radio station license, or a citizens 
        radio service class D license, in good standing, issued by the 
        Federal Communications Commission shall upon compliance with all 
        laws of this state relating to registration and the licensing of 
        motor vehicles and drivers, be furnished with license plates for 
        the motor vehicle, as prescribed by law, upon which, in lieu of 
        the numbers required for identification under subdivision 1, 
        shall be inscribed the official amateur call letters of the 
        applicant, as assigned by the Federal Communications 
        Commission., and the words "AMATEUR RADIO."  The applicant shall 
        pay in addition to the registration tax required by law, the sum 
        of $10 for the special license plates, and at the time of 
        delivery of the special license plates the applicant shall 
        surrender to the registrar the current license plates issued for 
        the motor vehicle.  This provision for the issue of special 
        license plates shall apply only if the applicant's vehicle is 
        already registered in Minnesota so that the applicant has valid 
        regular Minnesota plates issued for that vehicle under which to 
        operate it during the time that it will take to have the 
        necessary special license plates made.  If owning or jointly 
        owning more than one motor vehicle of the type specified in this 
        subdivision, the applicant may apply for special plates for each 
        of not more than two vehicles, and, if each application complies 
        with this subdivision, the registrar shall furnish the applicant 
        with the special plates, inscribed with the official amateur 
        call letters and other distinguishing information as the 
        registrar considers necessary, for each of the two vehicles.  
        And the registrar may make reasonable rules governing the use of 
        the special license plates as will assure the full compliance by 
        the owner and holder of the special plates, with all existing 
        laws governing the registration of motor vehicles, the transfer 
        and the use thereof. 
           Despite any contrary provision of subdivision 1, the 
        special license plates issued under this subdivision may be 
        transferred to another motor vehicle upon the payment of a fee 
        of $5.  The registrar must be notified of the transfer and may 
        prescribe a form for the notification.  
           Fees collected under this subdivision must be paid into the 
        state treasury and credited to the highway user tax distribution 
        fund. 
           Sec. 4.  Minnesota Statutes 1994, section 168.123, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL REQUIREMENTS; FEES.] (a) On 
        payment of a fee of $10 for 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 laws 
        relating to the registration and licensing of a passenger 
        automobile, pickup truck, van, self-propelled recreational 
        equipment, or motorcycle, as applicable, the registrar shall 
        issue: 
           (1) special license 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 an owner or joint owner of a motor 
        vehicle included within the definition of a passenger automobile 
        or which is, pickup truck, van, or self-propelled recreational 
        equipment, on payment of a fee of $10 for each set of two 
        plates, payment of the registration tax required by law, and 
        compliance with other laws relating to registration and 
        licensing of motor vehicles and drivers; or 
           (2) a special motorcycle license plate as described in 
        subdivision 2, paragraph (a), or another special license plate 
        designed by the commissioner of public safety to an applicant 
        who is a Vietnam veteran who served after July 1, 1961, and 
        before July 1, 1978, and who served in the active military 
        service in a branch of the armed forces of the United States in 
        conducting a foreign war, was discharged under honorable 
        conditions, and is an owner or joint owner of a motorcycle.  
        Plates issued under this clause must be the same size as 
        standard motorcycle license plates.  
           (b) The additional fee of $10 is payable for each set of 
        plates, is payable only when the plates are issued, and is not 
        payable in a year in which tabs or stickers are issued instead 
        of number plates.  An applicant must not be issued more than two 
        sets of plates for vehicles listed in paragraph (a) and owned or 
        jointly owned by the applicant. 
           (c) The veteran shall 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' license 
        plates provided under this section. 
           Sec. 5.  Minnesota Statutes 1994, section 168.123, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PLATE TRANSFERS.] (a) On payment of a fee of $5, 
        plates issued under this section subdivision 1, paragraph (a), 
        clause (1), may be transferred to another motor 
        vehicle passenger automobile, pickup truck, van, or 
        self-propelled recreational equipment owned or jointly owned by 
        the person to whom the plates were issued.  
           (b) On payment of a fee of $5, a plate issued under 
        subdivision 1, paragraph (a), clause (2), may be transferred to 
        another motorcycle owned or jointly owned by the person to whom 
        the plate was issued. 
           Sec. 6.  [168.1291] [SPECIAL LICENSE PLATES; DESIGN.] 
           Subdivision 1.  [DEFINITION.] For purposes of this section 
        "special license plates" means license plates issued under 
        sections 168.12, subdivisions 2b to 2e; 168.123; 168.129; 
        168.1292; and 168.1296. 
           Subd. 2.  [DESIGN OF SPECIAL LICENSE PLATES.] The 
        commissioner shall design a single special license plate that 
        will contain a unique number and a space for a unique symbol.  
        The commissioner shall design a unique symbol related to the 
        purpose of each special license plate.  Any provision of 
        sections 168.12, subdivisions 2b to 2e; 168.123; 168.129; 
        168.1292; and 168.1296 that requires the placement of a 
        specified letter or letters on a special license plate applies 
        to those license plates only to the extent that the commissioner 
        includes the letter or letters in the design.  Where a law 
        authorizing a special license plate contains a specific 
        requirement for graphic design of that license plate, that 
        requirement applies to the appropriate unique symbol the 
        commissioner designs. 
           Subd. 3.  [ISSUANCE OF SPECIAL LICENSE PLATES WITH UNIQUE 
        SYMBOLS.] Notwithstanding section 168.12, subdivisions 2b to 2e; 
        168.123; 168.129; 168.1292; or 168.1296, beginning with special 
        license plates issued in calendar year 1996 the commissioner 
        shall issue each class of special license plates permanently 
        marked with specific designs under those laws only until the 
        commissioner's supply of those license plates is exhausted.  
        Thereafter the commissioner shall issue under those laws only 
        the license plate authorized under subdivision 2, with the 
        appropriate unique symbol attached. 
           Subd. 4.  [FEES.] Notwithstanding section 168.12, 
        subdivisions 2b to 2e; 168.123; 168.129; 168.1292; or 168.1296, 
        the commissioner shall charge a fee of $10 for each set of 
        license plates issued under this section. 
           Subd. 5.  [APPLICATION.] This section does not apply to a 
        special motorcycle license plate designed by the registrar under 
        section 168.123, subdivision 1, clause (2). 
           Sec. 7.  [168.1292] [OLYMPIC LICENSE PLATES.] 
           Subdivision 1.  [GENERAL REQUIREMENTS AND PROCEDURES.] The 
        registrar shall issue special Olympic license plates to an 
        applicant who: 
           (1) is an owner or joint owner of a passenger automobile, 
        pickup truck, or van; 
           (2) pays a fee of $10 to 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 $15 annually to the Minnesota amateur 
        sports commission; and 
           (6) complies with laws and rules governing registration and 
        licensing of vehicles and drivers. 
           Subd. 2.  [DESIGN.] After consultation with the United 
        States Olympic Committee, the registrar shall design the special 
        Olympic plates. 
           In consultation with the registrar, the Minnesota amateur 
        sports commission annually shall indicate the number of plates 
        the commission anticipates will be needed. 
           Subd. 3.  [PLATE TRANSFERS.] Notwithstanding section 
        168.12, subdivision 1, on payment of a transfer fee of $5, 
        plates issued under this section may be transferred to another 
        passenger vehicle, pickup truck, or van owned or jointly owned 
        by the person to whom the special plates were issued. 
           Subd. 4.  [FEES CREDITED.] The fees collected under this 
        section must be deposited in the state treasury and credited to 
        the highway user tax distribution fund.  
           Subd. 5.  [CONTRIBUTIONS.] The registrar shall issue a set 
        of Olympic license plates under this section only to a person 
        who presents at the time of applying for registration a receipt 
        from the Minnesota amateur sports commission that demonstrates 
        that the applicant has contributed at least $15 to the 
        commission within 90 days prior to the date of the application.  
        After the issuance of that set of Olympic license plates, the 
        collection of subsequent contributions during the life of that 
        set of license plates is the responsibility of the commission. 
           Sec. 8.  Minnesota Statutes 1995 Supplement, section 
        168.1296, subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL REQUIREMENTS AND PROCEDURES.] The 
        registrar shall issue special critical habitat license plates to 
        an applicant who: 
           (1) is an owner or joint owner of a passenger automobile, 
        pickup truck, or van; 
           (2) pays a fee determined by the registrar of $10 to 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 at least $30 annually to the Minnesota 
        critical habitat private sector matching account established in 
        section 84.943; and 
           (6) complies with laws and rules governing registration and 
        licensing of vehicles and drivers. 
           Sec. 9.  Minnesota Statutes 1994, section 168.15, is 
        amended to read: 
           168.15 [RIGHTS AS TO REGISTRATION CERTIFICATES AND NUMBER 
        PLATES.] 
           Subdivision 1.  [TRANSFER OF OWNERSHIP.] Except as provided 
        in subdivision 3, upon the transfer of ownership, destruction, 
        theft, dismantling as such, or the permanent removal by the 
        owner thereof from this state of any motor vehicle registered in 
        accordance with the provisions of this chapter, the right of the 
        owner of such vehicle to use the registration certificate and 
        number plates assigned such vehicle shall expire, and such 
        certificate and any existing plates shall be, by such owner, 
        forthwith returned, with transportation prepaid, to the 
        registrar with a signed notice of the date and manner of 
        termination of ownership, giving the name and post office 
        address, with street and number, if in a city, of the person to 
        whom transferred.  No fee may be charged for a return of plates 
        under this section.  When the ownership of a motor vehicle shall 
        be transferred to another who shall forthwith register the same 
        in the other's name, the registrar may permit the manual 
        delivery of such plates to the new owner of such vehicle.  When 
        seeking to become the owner by gift, trade, or purchase of any 
        vehicle for which a registration certificate has been 
        theretofore issued under the provisions of this chapter, a 
        person shall join with the registered owner in transmitting with 
        the application the registration certificate, with the 
        assignment and notice of sale duly executed upon the reverse 
        side thereof, or, in case of loss of such certificate, with such 
        proof of loss by sworn statement, in writing, as shall be 
        satisfactory to the registrar.  Upon the transfer of any motor 
        vehicle by a manufacturer or dealer, for use within the state, 
        whether by sale, lease, or otherwise, such manufacturer or 
        dealer shall, within seven days after such transfer, file with 
        the registrar a notice or report containing the date of such 
        transfer, a description of such motor vehicles, and the name, 
        street and number of residence, if in a city, and the post 
        office address of the transferee, and shall transmit therewith 
        the transferee's application for registration thereof. 
           Subd. 2.  [TRANSFER OF ENGINE.] Upon the transfer of any 
        automobile engine or motor, except a new engine or motor, 
        transferred with intent that the same be installed in a new 
        automobile, and whether such transfer be made by a manufacturer 
        or dealer, or otherwise, and whether by sale, lease or 
        otherwise, the transferor shall, within two days after such 
        transfer, file with the registrar a notice or report containing 
        the date of such transfer and a description, together with the 
        maker's number of the engine or motor, and the name and post 
        office address of the purchaser, lessee, or other transferee.  
           Subd. 3.  [VEHICLES OF LESSORS; TRANSFERS.] Notwithstanding 
        subdivision 1, a motor vehicle lessor licensed under section 
        168.27, subdivision 2, 3, or 4, may transfer license plates 
        issued to one rental motor vehicle owned by the lessor to 
        another rental motor vehicle, owned by the lessor and not 
        previously registered in Minnesota or another jurisdiction, if 
        within ten days of the transfer the lessor registers the vehicle 
        to which the license plates were transferred.  Upon 
        registration, the lessor must pay all taxes and fees due on the 
        registration of the vehicle to which the license plates were 
        transferred, plus a transfer fee of $15.  The fee must be 
        deposited in the highway user tax distribution fund.  For 
        purposes of this subdivision, "rental motor vehicle" means a 
        vehicle used for rentals or leases of 30 days or less. 
           Sec. 10.  Minnesota Statutes 1995 Supplement, section 
        168.16, is amended to read: 
           168.16 [REFUNDS; APPROPRIATION.] 
           After the tax upon any motor vehicle shall have been paid 
        for any year, refund shall be made for errors made in computing 
        the tax or fees and for the error on the part of an owner who 
        may in error have registered a motor vehicle that was not 
        before, nor at the time of registration, nor at any time 
        thereafter during the current past year, subject to tax in this 
        state as provided by section 168.012.  Unless otherwise provided 
        in this chapter, a claim for a refund of an overpayment of 
        registration tax must be filed within 3-1/2 years from the date 
        of payment.  The refundment shall be made from any fund in 
        possession of the registrar and shall be deducted from the 
        registrar's monthly report to the commissioner of finance.  A 
        detailed report of the refundment shall accompany the report.  
        The former owner of a transferred vehicle by an assignment in 
        writing endorsed upon the registration certificate and delivered 
        to the registrar within the time provided herein may sell and 
        assign to the new owner thereof the right to have the tax paid 
        by the former owner accredited to the owner who duly registers 
        the vehicle.  Any owner at the time of such occurrence, whose 
        vehicle shall be is permanently destroyed, or sold to the 
        federal government, the state, or political subdivision thereof, 
        and any owner who sells a rental motor vehicle and transfers the 
        license plates issued to that motor vehicle under section 
        168.15, subdivision 3, shall upon filing a verified claim be 
        entitled to a refund of the unused portion of the tax paid upon 
        the vehicle, computed as follows: 
           (1) if the vehicle is registered under the calendar year 
        system of registration, the refund is computed pro rata by the 
        month, 1/12 of the annual tax paid for each month of the year 
        remaining after the month in which the plates and certificate 
        were returned to the registrar; 
           (2) in the case of a vehicle registered under the monthly 
        series system of registration, the amount of the refund is equal 
        to the sum of the amounts of the license fee attributable to 
        those months remaining in the licensing period after the month 
        in which the plates and certificate were returned to the 
        registrar. 
           There is hereby appropriated to the persons entitled to a 
        refund, from the fund or account in the state treasury to which 
        the money was credited, an amount sufficient to make the refund 
        and payment.  Refunds under this section to licensed motor 
        vehicle lessors must be made annually in a manner the registrar 
        determines. 
           Sec. 11.  Minnesota Statutes 1994, section 168.33, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [TEMPORARY DISABILITY PERMIT AND FEE.] The 
        registrar shall allow deputy registrars to implement and follow 
        procedures for processing applications and accepting and 
        remitting fee payments for 30-day temporary disability permits 
        issued under section 169.345, subdivision 3, paragraph (c), that 
        are identical or substantially similar to the procedures 
        required by rule for motor vehicle registration and titling 
        transactions. 
           Sec. 12.  Minnesota Statutes 1994, section 169.121, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CRIMINAL PENALTIES.] (a) As used in this 
        subdivision:  
           (1) "prior impaired driving conviction" means a prior 
        conviction under this section; section 84.91, subdivision 1, 
        paragraph (a); 86B.331, subdivision 1, paragraph (a); 169.129; 
        360.0752; 609.21, subdivision 1, clauses (2) to (4); 609.21, 
        subdivision 2, clauses (2) to (4); 609.21, subdivision 2a, 
        clauses (2) to (4); 609.21, subdivision 3, clauses (2) to (4); 
        609.21, subdivision 4, clauses (2) to (4); or an ordinance from 
        this state, or a statute or ordinance from another state in 
        conformity with any of them.  A prior impaired driving 
        conviction also includes a prior juvenile adjudication that 
        would have been a prior impaired driving conviction if committed 
        by an adult; and 
           (2) "prior license revocation" means a driver's license 
        suspension, revocation, or cancellation under this section; 
        section 169.123; 171.04; 171.14; 171.16; 171.17; or 171.18 
        because of an alcohol-related incident; 609.21, subdivision 1, 
        clauses (2) to (4); 609.21, subdivision 2, clauses (2) to (4); 
        609.21, subdivision 2a, clauses (2) to (4); 609.21, subdivision 
        3, clauses (2) to (4); or 609.21, subdivision 4, clauses (2) to 
        (4); or an ordinance from this state, or a statute or ordinance 
        from another state in conformity with any of them. 
           (b) A person who violates subdivision 1 or 1a, or an 
        ordinance in conformity with either of them, is guilty of a 
        misdemeanor. 
           (c) A person is guilty of a gross misdemeanor under any of 
        the following circumstances: 
           (1) the person violates subdivision 1 within five years of 
        a prior impaired driving conviction, or within ten years of the 
        first of two or more prior impaired driving convictions; 
           (2) the person violates subdivision 1a within five years of 
        a prior license revocation, or within ten years of the first of 
        two or more prior license revocations; 
           (3) the person violates section 169.26 while in violation 
        of subdivision 1; or 
           (4) the person violates subdivision 1 or 1a while a child 
        under the age of 16 is in the vehicle, if the child is more than 
        36 months younger than the violator. 
           (d) The attorney in the jurisdiction in which the violation 
        occurred who is responsible for prosecution of misdemeanor 
        violations of this section shall also be responsible for 
        prosecution of gross misdemeanor violations of this section. 
           (e) The court must impose consecutive sentences when it 
        sentences a person for a violation of this section or section 
        169.29 arising out of separate behavioral incidents.  The court 
        also must impose a consecutive sentence when it sentences a 
        person for a violation of this section or section 169.129 and 
        the person, at the time of sentencing, is on probation for, or 
        serving, an executed sentence for a violation of this section or 
        section 169.29 and the prior sentence involved a separate 
        behavioral incident.  The court also may order that the sentence 
        imposed for a violation of this section or section 169.29 shall 
        run consecutively to a previously imposed misdemeanor, gross 
        misdemeanor or felony sentence for a violation other than this 
        section or section 169.129. 
           (f) When an attorney responsible for prosecuting gross 
        misdemeanors under this section requests criminal history 
        information relating to prior impaired driving convictions from 
        a court, the court must furnish the information without charge. 
           (g) A violation of subdivision 1a may be prosecuted either 
        in the jurisdiction where the arresting officer observed the 
        defendant driving, operating, or in control of the motor vehicle 
        or in the jurisdiction where the refusal occurred. 
           Sec. 13.  [APPROPRIATION TO PAY INITIAL COSTS OF OLYMPIC 
        PLATES.] 
           (a) The Minnesota amateur sports commission shall pay the 
        commissioner an amount determined by the commissioner to equal 
        the administrative, handling, and manufacturing costs of the 
        first production of Olympic license plates.  Production of 
        license plates must begin after the commissioner receives 
        payment.  
           (b) The amount determined by the commissioner under 
        paragraph (a) is appropriated to the commissioner of public 
        safety to pay the costs of the first production of Olympic 
        license plates.  The sum is available until spent.  
           (c) The amount paid by the Minnesota amateur sports 
        commission to the commissioner under paragraph (a) is 
        appropriated to the Minnesota amateur sports commission from the 
        highway user tax distribution fund.  This appropriation is 
        available to the extent that Olympic license plates are sold and 
        receipts are credited to the highway user tax distribution fund. 
           Sec. 14.  [REPORT.] 
           The commissioner of public safety shall report to the 
        legislature by January 15, 1999, on the fiscal impact of 
        sections 9 and 10.  The report must include the total amount 
        paid in refunds and collected in fees under those sections. 
           Sec. 15.  [EFFECTIVE DATE.] 
           Section 8 is effective the day following final enactment.  
           Sections 9 and 10 are effective January 1, 1997, and are 
        repealed June 30, 1999. 
                                   ARTICLE 5
                          REPLACEMENT TRANSIT SERVICE
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        275.065, subdivision 3, is amended to read: 
           Subd. 3.  [NOTICE OF PROPOSED PROPERTY TAXES.] (a) The 
        county auditor shall prepare and the county treasurer shall 
        deliver after November 10 and on or before November 24 each 
        year, by first class mail to each taxpayer at the address listed 
        on the county's current year's assessment roll, a notice of 
        proposed property taxes and, in the case of a town, final 
        property taxes.  
           (b) The commissioner of revenue shall prescribe the form of 
        the notice. 
           (c) The notice must inform taxpayers that it contains the 
        amount of property taxes each taxing authority other than a town 
        proposes to collect for taxes payable the following year and, 
        for a town, the amount of its final levy.  It must clearly state 
        that each taxing authority, including regional library districts 
        established under section 134.201, and including the 
        metropolitan taxing districts as defined in paragraph (i), but 
        excluding all other special taxing districts and towns, will 
        hold a public meeting to receive public testimony on the 
        proposed budget and proposed or final property tax levy, or, in 
        case of a school district, on the current budget and proposed 
        property tax levy.  It must clearly state the time and place of 
        each taxing authority's meeting and an address where comments 
        will be received by mail.  
           (d) The notice must state for each parcel: 
           (1) the market value of the property as determined under 
        section 273.11, and used for computing property taxes payable in 
        the following year and for taxes payable in the current year; 
        and, in the case of residential property, whether the property 
        is classified as homestead or nonhomestead.  The notice must 
        clearly inform taxpayers of the years to which the market values 
        apply and that the values are final values; 
           (2) by county, city or town, school district excess 
        referenda levy, remaining school district levy, regional library 
        district, if in existence, the total of the metropolitan special 
        taxing districts as defined in paragraph (i) and the sum of the 
        remaining special taxing districts, and as a total of the taxing 
        authorities, including all special taxing districts, the 
        proposed or, for a town, final net tax on the property for taxes 
        payable the following year and the actual tax for taxes payable 
        the current year.  For the purposes of this subdivision, "school 
        district excess referenda levy" means school district taxes for 
        operating purposes approved at referendums, including those 
        taxes based on net tax capacity as well as those based on market 
        value.  "School district excess referenda levy" does not include 
        school district taxes for capital expenditures approved at 
        referendums or school district taxes to pay for the debt service 
        on bonds approved at referenda.  In the case of the city of 
        Minneapolis, the levy for the Minneapolis library board and the 
        levy for Minneapolis park and recreation shall be listed 
        separately from the remaining amount of the city's levy.  In the 
        case of a parcel where tax increment or the fiscal disparities 
        areawide tax applies, the proposed tax levy on the captured 
        value or the proposed tax levy on the tax capacity subject to 
        the areawide tax must each be stated separately and not included 
        in the sum of the special taxing districts; and 
           (3) the increase or decrease in the amounts in clause (2) 
        from taxes payable in the current year to proposed or, for a 
        town, final taxes payable the following year, expressed as a 
        dollar amount and as a percentage. 
           (e) The notice must clearly state that the proposed or 
        final taxes do not include the following: 
           (1) special assessments; 
           (2) levies approved by the voters after the date the 
        proposed taxes are certified, including bond referenda, school 
        district levy referenda, and levy limit increase referenda; 
           (3) amounts necessary to pay cleanup or other costs due to 
        a natural disaster occurring after the date the proposed taxes 
        are certified; 
           (4) amounts necessary to pay tort judgments against the 
        taxing authority that become final after the date the proposed 
        taxes are certified; and 
           (5) the contamination tax imposed on properties which 
        received market value reductions for contamination. 
           (f) Except as provided in subdivision 7, failure of the 
        county auditor to prepare or the county treasurer to deliver the 
        notice as required in this section does not invalidate the 
        proposed or final tax levy or the taxes payable pursuant to the 
        tax levy. 
           (g) If the notice the taxpayer receives under this section 
        lists the property as nonhomestead and the homeowner provides 
        satisfactory documentation to the county assessor that the 
        property is owned and has been used as the owner's homestead 
        prior to June 1 of that year, the assessor shall reclassify the 
        property to homestead for taxes payable in the following year. 
           (h) In the case of class 4 residential property used as a 
        residence for lease or rental periods of 30 days or more, the 
        taxpayer must either: 
           (1) mail or deliver a copy of the notice of proposed 
        property taxes to each tenant, renter, or lessee; or 
           (2) post a copy of the notice in a conspicuous place on the 
        premises of the property.  
           The notice must be mailed or posted by the taxpayer by 
        November 27 or within three days of receipt of the notice, 
        whichever is later.  A taxpayer may notify the county treasurer 
        of the address of the taxpayer, agent, caretaker, or manager of 
        the premises to which the notice must be mailed in order to 
        fulfill the requirements of this paragraph. 
           (i) For purposes of this subdivision, subdivisions 5a and 
        6, "metropolitan special taxing districts" means the following 
        taxing districts in the seven-county metropolitan area that levy 
        a property tax for any of the specified purposes listed below: 
           (1) metropolitan council under section 473.132, 473.167, 
        473.249, 473.325, 473.446, 473.521, 473.547, or 473.834; 
           (2) metropolitan airports commission under section 473.667, 
        473.671, or 473.672; and 
           (3) metropolitan mosquito control commission under section 
        473.711. 
           (j) For taxes levied in 1996, payable in 1997 only, in the 
        case of a statutory or home rule charter city or town that 
        exercises the local levy option provided in section 473.388, 
        subdivision 7, the notice of its proposed taxes may include a 
        statement of the amount by which its proposed tax increase for 
        taxes payable in 1997 is attributable to its exercise of that 
        option, together with a statement that the levy of the 
        metropolitan council was decreased by a similar amount because 
        of the exercise of that option. 
           For purposes of this section, any levies made by the 
        regional rail authorities in the county of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
        398A shall be included with the appropriate county's levy and 
        shall be discussed at that county's public hearing. 
           Sec. 2.  Minnesota Statutes 1995 Supplement, section 
        275.065, subdivision 6, is amended to read: 
           Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
        Between November 29 and December 20, the governing bodies of the 
        city, county, metropolitan special taxing districts as defined 
        in subdivision 3, paragraph (i), and regional library districts 
        shall each hold a public hearing to discuss and seek public 
        comment on its final budget and property tax levy for taxes 
        payable in the following year, and the governing body of the 
        school district shall hold a public hearing to review its 
        current budget and proposed property tax levy for taxes payable 
        in the following year.  The metropolitan special taxing 
        districts shall be required to hold only a single joint public 
        hearing, the location of which will be determined by the 
        affected metropolitan agencies. 
           At a subsequent hearing, each county, school district, 
        city, and metropolitan special taxing district may amend its 
        proposed property tax levy and must adopt a final property tax 
        levy.  Each county, city, and metropolitan special taxing 
        district may also amend its proposed budget and must adopt a 
        final budget at the subsequent hearing.  A school district is 
        not required to adopt its final budget at the subsequent 
        hearing.  The subsequent hearing of a taxing authority must be 
        held on a date subsequent to the date of the taxing authority's 
        initial public hearing, or subsequent to the date of its 
        continuation hearing if a continuation hearing is held.  The 
        subsequent hearing may be held at a regularly scheduled board or 
        council meeting or at a special meeting scheduled for the 
        purposes of the subsequent hearing.  The subsequent hearing of a 
        taxing authority does not have to be coordinated by the county 
        auditor to prevent a conflict with an initial hearing, a 
        continuation hearing, or a subsequent hearing of any other 
        taxing authority.  All subsequent hearings must be held prior to 
        five working days after December 20 of the levy year. 
           The time and place of the subsequent hearing must be 
        announced at the initial public hearing or at the continuation 
        hearing. 
           The property tax levy certified under section 275.07 by a 
        city, county, metropolitan special taxing district, regional 
        library district, or school district must not exceed the 
        proposed levy determined under subdivision 1, except by an 
        amount up to the sum of the following amounts: 
           (1) the amount of a school district levy whose voters 
        approved a referendum to increase taxes under section 124.82, 
        subdivision 3, 124A.03, subdivision 2, 124B.03, subdivision 2, 
        or 136C.411, after the proposed levy was certified; 
           (2) the amount of a city or county levy approved by the 
        voters after the proposed levy was certified; 
           (3) the amount of a levy to pay principal and interest on 
        bonds issued or approved by the voters under section 475.58 
        after the proposed levy was certified; 
           (4) the amount of a levy to pay costs due to a natural 
        disaster occurring after the proposed levy was certified, if 
        that amount is approved by the commissioner of revenue under 
        subdivision 6a; 
           (5) the amount of a levy to pay tort judgments against a 
        taxing authority that become final after the proposed levy was 
        certified, if the amount is approved by the commissioner of 
        revenue under subdivision 6a; 
           (6) the amount of an increase in levy limits certified to 
        the taxing authority by the commissioner of children, families, 
        and learning or the commissioner of revenue after the proposed 
        levy was certified; and 
           (7) the amount required under section 124.755. 
           At the hearing under this subdivision, the percentage 
        increase in property taxes proposed by the taxing authority, if 
        any, and the specific purposes for which property tax revenues 
        are being increased must be discussed.  
           During the discussion, the governing body shall hear 
        comments regarding a proposed increase and explain the reasons 
        for the proposed increase.  The public shall be allowed to speak 
        and to ask questions.  At the subsequent hearing held as 
        provided in this subdivision, the governing body, other than the 
        governing body of a school district, shall adopt its final 
        property tax levy prior to adopting its final budget. 
           If the hearing is not completed on its scheduled date, the 
        taxing authority must announce, prior to adjournment of the 
        hearing, the date, time, and place for the continuation of the 
        hearing.  The continued hearing must be held at least five 
        business days but no more than 14 business days after the 
        original hearing. 
           The hearing must be held after 5:00 p.m. if scheduled on a 
        day other than Saturday.  No hearing may be held on a Sunday.  
        The governing body of a county shall hold a hearing on the 
        second Tuesday in December each year, and may hold additional 
        hearings on other dates before December 20 if necessary for the 
        convenience of county residents.  If the county needs a 
        continuation of its hearing, the continued hearing shall be held 
        on the third Tuesday in December.  If the third Tuesday in 
        December falls on December 21, the county's continuation hearing 
        shall be held on Monday, December 20.  The county auditor shall 
        provide for the coordination of hearing dates for all cities and 
        school districts within the county. 
           The metropolitan special taxing districts shall hold a 
        joint public hearing on the first Monday of December.  A 
        continuation hearing, if necessary, shall be held on the second 
        Monday of December. 
           By August 10, each school board and the board of the 
        regional library district shall certify to the county auditors 
        of the counties in which the school district or regional library 
        district is located the dates on which it elects to hold its 
        hearings and any continuations.  If a school board or regional 
        library district does not certify the dates by August 10, the 
        auditor will assign the hearing date.  The dates elected or 
        assigned must not conflict with the hearing dates of the county 
        or the metropolitan special taxing districts.  By August 20, the 
        county auditor shall notify the clerks of the cities within the 
        county of the dates on which school districts and regional 
        library districts have elected to hold their hearings.  At the 
        time a city certifies its proposed levy under subdivision 1 it 
        shall certify the dates on which it elects to hold its hearings 
        and any continuations.  The city must not select dates that 
        conflict with the county hearing dates, metropolitan special 
        taxing district dates, or with those elected by or assigned to 
        the school districts or regional library district in which the 
        city is located. 
           The county hearing dates and the city, metropolitan special 
        taxing district, regional library district, and school district 
        hearing dates must be designated on the notices required under 
        subdivision 3.  The continuation dates need not be stated on the 
        notices.  
           This subdivision does not apply to towns and special taxing 
        districts other than regional library districts and metropolitan 
        special taxing districts. 
           Notwithstanding the requirements of this section, the 
        employer is required to meet and negotiate over employee 
        compensation as provided for in chapter 179A. 
           Sec. 3.  Minnesota Statutes 1994, section 473.388, 
        subdivision 5, is amended to read: 
           Subd. 5.  [OTHER ASSISTANCE.] A city or town receiving 
        assistance or levying a transit tax under this section may also 
        receive assistance from the council under section 473.384.  In 
        applying for assistance under that section an applicant must 
        describe the portion of the its available local transit funds or 
        local transit taxes which are not obligated to subsidize its 
        replacement transit service and which the applicant proposes to 
        use to subsidize additional service.  An applicant which has 
        exhausted its available local transit funds or local transit 
        taxes may use any other local subsidy funds to complete the 
        required local share.  
           Sec. 4.  Minnesota Statutes 1994, section 473.388, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [LOCAL LEVY OPTION.] (a) A statutory or home rule 
        charter city or town that is eligible for assistance under this 
        section, in lieu of receiving the assistance, may levy a tax for 
        payment of the operating and capital expenditures for transit 
        and other related activities and to provide for payment of 
        obligations issued by the municipality for such purposes, 
        provided that the tax must be sufficient to maintain the level 
        of transit service provided in the municipality in the previous 
        year. 
           (b) The transit tax revenues derived by the municipality 
        may not exceed: 
           (1) for the first transit levy year and any subsequent 
        transit levy year immediately following a year in which the 
        municipality declines to make the levy, the maximum available 
        local transit funds for the municipality for taxes payable in 
        the current year under section 473.446, calculated as if the 
        percentage of transit tax revenues for the municipality were 88 
        percent instead of 90 percent, and multiplied by the 
        municipality's market value adjustment ratio; and 
           (2) for taxes levied in any year that immediately follows a 
        year in which the municipality elects to levy under this 
        subdivision, the maximum transit tax that the municipality may 
        have levied in the previous year under this subdivision, 
        multiplied by the municipality's market value adjustment ratio. 
           The commissioner of revenue shall certify the 
        municipality's levy limitation under this subdivision to the 
        municipality by June 1 of the levy year.  The tax must be 
        accumulated and kept in a separate fund to be known as the 
        "replacement transit fund." 
           (c) To enable the municipality to receive revenues 
        described in clauses (2) and (3) of the definition of "tax 
        revenues" in subdivision 4, that would otherwise be lost if the 
        municipality's transit tax levy was not treated as a successor 
        levy to that made by the council under section 473.446: 
           (1) in the first transit levy year and any subsequent 
        transit levy year immediately following a year in which the 
        municipality declined to make the levy, 88 percent of the 
        council's nondebt spread levy for the current taxes payable year 
        shall be treated as levied by the municipality, and not the 
        council, for purposes of section 473F.08, subdivision 3, for the 
        purpose of determining its local tax rate for the preceding 
        year; and 
           (2) 88 percent of the revenues described in clause (3) of 
        the definition of "tax revenues" in subdivision 4, payable in 
        the first transit levy year, or payable in any subsequent 
        transit levy year following a year in which a municipality 
        declined to make the levy, shall be permanently transferred from 
        the council to the municipality.  If a municipality levies a tax 
        under this subdivision in one year, but declines to levy in a 
        subsequent year, the aid transferred under this clause shall be 
        transferred back to the council. 
           (d) Any transit taxes levied under this subdivision are not 
        subject to, or counted towards, any limit hereafter imposed by 
        law on the levy of taxes upon taxable property within any 
        municipality unless the law specifically includes the transit 
        tax. 
           (e) This subdivision is consistent with the transit 
        redesign plan.  Eligible municipalities opting to levy the 
        transit tax under this subdivision shall continue to meet the 
        regional performance standards established by the council. 
           (f) Within the designated Americans with Disabilities Act 
        area, metro mobility remains the obligation of the state. 
           (g) For purposes of this subdivision, "transit levy year" 
        is any year in which the municipality elects to levy under this 
        subdivision. 
           (h) A municipality may not levy taxes under this 
        subdivision in any year unless it notifies the council and the 
        commissioner of revenue of its intent to levy before July 1 of 
        the levy year.  The notification must include the amount of the 
        municipality's proposed transit tax for the current levy year. 
           Sec. 5.  Minnesota Statutes 1995 Supplement, section 
        473.446, subdivision 1, is amended to read: 
           Subdivision 1.  [TAXATION WITHIN TRANSIT TAXING DISTRICT.] 
        For the purposes of sections 473.405 to 473.449 and the 
        metropolitan transit system, except as otherwise provided in 
        this subdivision and subdivision 1b, the council shall levy each 
        year upon all taxable property within the metropolitan transit 
        taxing district, defined in subdivision 2, a transit tax 
        consisting of: 
           (a) an amount which shall be used for payment of the 
        expenses of operating transit and paratransit service and to 
        provide for payment of obligations issued by the council under 
        section 473.436, subdivision 6; 
           (b) an additional amount, if any, the council determines to 
        be necessary to provide for the full and timely payment of its 
        certificates of indebtedness and other obligations outstanding 
        on July 1, 1985, to which property taxes under this section have 
        been pledged; and 
           (c) an additional amount necessary to provide full and 
        timely payment of certificates of indebtedness, bonds, including 
        refunding bonds or other obligations issued or to be issued 
        under section 473.39 by the council for purposes of acquisition 
        and betterment of property and other improvements of a capital 
        nature and to which the council has specifically pledged tax 
        levies under this clause. 
           The property tax levied by the council for general purposes 
        under clause paragraph (a) must not exceed the following amount 
        for the years specified: 
           (1) for taxes payable in 1995, the council's property tax 
        levy limitation for general transit purposes is equal to the 
        former regional transit board's property tax levy limitation for 
        general transit purposes under this subdivision, for taxes 
        payable in 1994, multiplied by an index for market valuation 
        changes equal to the total market valuation of all taxable 
        property located within the metropolitan transit taxing district 
        for the current taxes payable year divided by the total market 
        valuation of all taxable property located within the 
        metropolitan transit taxing district for the previous taxes 
        payable year; and 
           (2) for taxes payable in 1996 and subsequent years, the 
        product of (i) the council's property tax levy limitation for 
        general transit purposes for the previous year determined under 
        this subdivision before reduction by the amount levied by any 
        municipality in the previous year under section 473.388, 
        subdivision 7, multiplied by (ii) an index for market valuation 
        changes equal to the total market valuation of all taxable 
        property located within the metropolitan transit taxing district 
        for the current taxes payable year divided by the total market 
        valuation of all taxable property located within the 
        metropolitan transit taxing district for the previous taxes 
        payable year, minus the amount levied by any municipality in the 
        current levy year under section 473.388, subdivision 7. 
           The portion of the property tax levy for transit district 
        operating purposes attributable to a municipality that has 
        exercised a local levy option under section 473.388, subdivision 
        7, is the amount as determined under subdivision 1b.  The 
        portion of the property tax levy for transit district operating 
        purposes attributable to the remaining municipalities within the 
        transit district is found by subtracting the portions 
        attributable to the municipalities that have exercised a local 
        levy option under section 473.388, subdivision 7. 
           For the taxes payable year 1995, the index for market 
        valuation changes shall be multiplied by an amount equal to the 
        sum of the regional transit board's property tax levy limitation 
        for the taxes payable year 1994 and $160,665.  The $160,665 
        increase shall be a permanent adjustment to the levy limit base 
        used in determining the regional transit board's property tax 
        levy limitation for general purposes for subsequent taxes 
        payable years. 
           For the purpose of determining the council's property tax 
        levy limitation for general transit purposes under this 
        subdivision, "total market valuation" means the total market 
        valuation of all taxable property within the metropolitan 
        transit taxing district without valuation adjustments for fiscal 
        disparities (chapter 473F), tax increment financing (sections 
        469.174 to 469.179), and high voltage transmission lines 
        (section 273.425). 
           The county auditor shall reduce the tax levied pursuant to 
        this subdivision section and section 473.388 on all property 
        within statutory and home rule charter cities and towns that 
        receive full-peak service and limited off-peak service by an 
        amount equal to the tax levy that would be produced by applying 
        a rate of 0.510 percent of net tax capacity on the property.  
        The county auditor shall reduce the tax levied pursuant to 
        this subdivision section and section 473.388 on all property 
        within statutory and home rule charter cities and towns that 
        receive limited peak service by an amount equal to the tax levy 
        that would be produced by applying a rate of 0.765 percent of 
        net tax capacity on the property.  The amounts so computed by 
        the county auditor shall be submitted to the commissioner of 
        revenue as part of the abstracts of tax lists required to be 
        filed with the commissioner under section 275.29.  Any prior 
        year adjustments shall also be certified in the abstracts of tax 
        lists.  The commissioner shall review the certifications to 
        determine their accuracy and may make changes in the 
        certification as necessary or return a certification to the 
        county auditor for corrections.  The commissioner shall pay to 
        the council and to the municipalities levying under section 
        473.388, subdivision 7, the amounts certified by the county 
        auditors on the dates provided in section 273.1398, apportioned 
        between the council and the municipality in the same proportion 
        as the total transit levy is apportioned within the 
        municipality.  There is annually appropriated from the general 
        fund in the state treasury to the department of revenue the 
        amounts necessary to make these payments.  
           For the purposes of this subdivision, "full-peak and 
        limited off-peak service" means peak period regular route 
        service, plus weekday midday regular route service at intervals 
        longer than 60 minutes on the route with the greatest frequency; 
        and "limited peak period service" means peak period regular 
        route service only.  
           For the purposes of property taxes payable in the following 
        year, the council shall annually determine which cities and 
        towns qualify for the 0.510 percent or 0.765 percent tax 
        capacity rate reduction and shall certify this list to the 
        county auditor of the county wherein such cities and towns are 
        located on or before September 15.  No changes may be made to 
        the annual list after September 15. 
           Sec. 6.  Minnesota Statutes 1994, section 473.446, is 
        amended by adding a subdivision to read: 
           Subd. 1b.  [DEDUCTION OF LOCAL TRANSIT LEVY FOR ELIGIBLE 
        MUNICIPALITIES.] (a) The maximum the council may levy for 
        general purposes under subdivision 1, paragraph (a), upon 
        taxable property within a municipality levying taxes under 
        section 473.388, subdivision 7, is the combined transit tax 
        levied within the municipality in the previous year under 
        subdivision 1 and section 473.388, subdivision 7, multiplied by 
        the municipality's market value adjustment ratio, minus the 
        amount to be levied by the municipality under section 473.388, 
        subdivision 7, for the current levy year. 
           (b) For purposes of this subdivision: 
           (1) "municipality" means a municipality levying taxes under 
        section 473.388, subdivision 7, for replacement transit service; 
           (2) "market value adjustment ratio" means the index for 
        market valuation changes described in this section, as applied 
        to individual municipalities; and 
           (3) "tax revenues" has the meaning given the term in 
        section 473.388, subdivision 4. 
           Sec. 7.  Minnesota Statutes 1995 Supplement, section 
        473.446, subdivision 8, is amended to read: 
           Subd. 8.  [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 under this section to the 
        commissioner of revenue by September 1 of the levy year.  The 
        commissioner of revenue shall annually determine whether the 
        property tax for transit purposes certified by the council for 
        levy following the adoption of its proposed budget is within the 
        levy limitation imposed by subdivision subdivisions 1 and 1b.  
        The commissioner shall also annually determine whether the 
        transit tax imposed on all taxable property within the 
        metropolitan transit area but outside of the metropolitan 
        transit taxing district is within the levy limitation imposed by 
        subdivision 1a.  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 calculations. 
           Sec. 8.  [APPLICATION.] 
           This article applies in the counties of Anoka, Carver, 
        Dakota, Hennepin, Ramsey, Scott, and Washington. 
           Sec. 9.  [EFFECTIVE DATE.] 
           Sections 1 to 7 are effective for taxes levied in 1996, 
        payable in 1997 and subsequent years.  
                                   ARTICLE 6 
                               DESIGNATED PARENTS 
           Section 1.  Minnesota Statutes 1995 Supplement, section 
        13.69, subdivision 1, is amended to read: 
           Subdivision 1.  [CLASSIFICATIONS.] (a) The following 
        government data of the department of public safety are private 
        data:  
           (1) medical data on driving instructors, licensed drivers, 
        and applicants for parking certificates and special license 
        plates issued to physically handicapped persons; 
           (2) other data on holders of a disability certificate under 
        section 169.345, except that data that are not medical data may 
        be released to law enforcement agencies; and 
           (3) social security numbers in driver's license and motor 
        vehicle registration records, except that social security 
        numbers must be provided to the department of revenue for 
        purposes of tax administration and the department of labor and 
        industry for purposes of workers' compensation administration 
        and enforcement.; and 
           (4) data on persons listed as designated parents under 
        section 171.07, subdivision 11, except that the data must be 
        released to: 
           (i) law enforcement agencies for the purpose of verifying 
        that an individual is a designated parent; or 
           (ii) law enforcement agencies who state that the license 
        holder is unable to communicate at that time and that the 
        information is necessary for notifying the designated parent of 
        the need to care for a child of the license holder.  
           (b) The following government data of the department of 
        public safety are confidential data:  data concerning an 
        individual's driving ability when that data is received from a 
        member of the individual's family. 
           Sec. 2.  Minnesota Statutes 1994, section 171.07, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [DESIGNATED PARENT.] (a) Upon the written 
        request of the applicant on a form developed by the department, 
        which contains the information specified in paragraph (b), and 
        upon payment of an additional fee of $3.50, the department shall 
        issue a driver's license or Minnesota identification card 
        bearing a symbol or other appropriate identifier indicating that 
        the license holder has appointed an individual to serve as a 
        designated parent under chapter 257A. 
           (b) The form shall provide as follows:  
           "...(Name of parent(s))... appoints ...(name of designated 
        parent)... to provide care for ...(name of child or children)... 
        when requested by the parent(s) or when the parent(s) is unable 
        to care for the child (children) and unable to request the 
        designated parent's assistance. 
           The designated parent will care for the child (children) 
        named in this form for (choose one of the following): 
           (indicate a specified period of time that is less than one 
        year); or 
           (indicate that care is to be provided for one year). 
           The designated parent has the powers and duties to make 
        decisions and meet the child's (children's) needs in the areas 
        checked or specified below: 
           education ..... 
           health care ..... 
           religion ..... 
           day care ..... 
           recreation ..... 
           other ..... 
         ........................................................... 
         ........................................................... 
         ........................................................... 
           The designated parent (choose one of the following): 
           is ... 
           is not ... 
           authorized to make decisions about financial issues and 
        control financial resources provided for the child (children) by 
        the parent. 
           This designated parent agreement is effective for four 
        years following the date it is signed by the parent(s), 
        designated parent, any child age 14 or older, and any alternate 
        designated parent.  However, the agreement may be canceled by a 
        parent, a designated parent, or an alternate designated parent 
        at any time before that date, upon notice to the other parties 
        to the agreement. 
           (Parent(s) signature(s) and Minnesota driver's license(s) 
        or Minnesota identification card number(s)) 
           (Designated parent signature, Minnesota driver's license or 
        Minnesota identification card number, address, and telephone 
        number) 
           (Alternate designated parent signature, Minnesota driver's 
        license or Minnesota identification card number, address, and 
        telephone number) 
           (Child age 14 or older signature .....) 
           (Date .....) 
           (Notarization .....)" 
           (c) The department shall maintain a computerized records 
        system of all persons listed as designated parents by driver's 
        license and identification card applicants.  This data shall be 
        released to appropriate law enforcement agencies under section 
        13.69.  Upon a parent's request and payment of a fee of $3.50, 
        the department shall revise its list of designated parents and 
        alternates to reflect a change in the appointment of a 
        designated parent. 
           (d) At the request of the license or card holder, the 
        department shall cancel the designated parent indication without 
        additional charge.  However, this paragraph does not prohibit a 
        fee that may be applicable for a duplicate or replacement 
        license or card, renewal of a license, or other service 
        applicable to a driver's license or identification card. 
           (e) Notwithstanding sections 13.08, subdivision 1, and 
        13.69, the department and department employees are conclusively 
        presumed to be acting in good faith when employees rely on 
        statements made, in person or by telephone, by persons 
        purporting to be law enforcement and subsequently release 
        information described in paragraph (b).  When acting in good 
        faith, the department and department personnel are immune from 
        civil liability and not subject to suit for damages resulting 
        from the release of this information. 
           (f) The department and its employees: 
           (1) have no duty to inquire or otherwise determine whether 
        a form submitted under this subdivision contains the signatures 
        of all parents who have legal custody of a child; and 
           (2) are immune from all civil liability and not subject to 
        suit for damages resulting from a claim that any parent with 
        legal custody of a child has not signed the form. 
           (g) Of the fees received by the department under this 
        subdivision: 
           (1) Up to $111,000 received in fiscal year 1997 and up to 
        $61,000 received in subsequent fiscal years must be deposited in 
        the general fund. 
           (2) All other fees must be deposited in the trunk highway 
        fund. 
           Sec. 3.  Minnesota Statutes 1994, section 171.26, is 
        amended to read: 
           171.26 [MONEY CREDITED TO FUNDS.] 
           All money received under this chapter must be paid into the 
        state treasury and credited to the trunk highway fund, except as 
        provided in sections 171.06, subdivision 2a; 171.07, subdivision 
        11, paragraph (g); 171.12, subdivision 8; and 171.29, 
        subdivision 2, paragraph (b). 
           Sec. 4.  [257A.01] [DESIGNATED PARENT AGREEMENT.] 
           Subdivision 1.  [DESIGNATION IN AGREEMENT.] A parent who 
        has legal custody of a child may execute a designated parent 
        agreement that names an adult to serve as a designated parent to 
        care for the parent's minor child for a period of time specified 
        in the designated parent agreement, but not to exceed one year. 
           Subd. 2.  [CONSENTS AND NOTICE REQUIRED.] The agreement 
        must be executed by all parents with physical custody of the 
        child.  The agreement becomes operative when none of the parents 
        with physical custody is able to care for the child.  As soon as 
        practicable after executing an agreement, a copy of the 
        agreement must be given to any noncustodial parent of the child 
        and to every child age 14 or older to whom the agreement applies.
           Sec. 5.  [257A.02] [DESIGNATED PARENT; ALTERNATE.] 
           An individual acting as a designated parent is exempt in 
        that role from any statute or administrative rule requiring a 
        foster care license, unless the child was placed in the home of 
        the designated parent by a child-placing agency pursuant to a 
        voluntary placement agreement or court order, but must provide 
        the notice required by section 257A.09 if applicable.  A parent 
        who has named a guardian by will for the parent's children may 
        name that guardian or another individual as a designated parent 
        for the child.  A parent who has legal custody of more than one 
        child may appoint the same or a different designated parent for 
        each child. 
           A parent may appoint an alternate designated parent who 
        would serve if the designated parent is unwilling or unable to 
        serve.  All the provisions of this chapter dealing with a 
        designated parent apply to an alternate designated parent. 
           Sec. 6.  [257A.03] [POWERS AND DUTIES OF DESIGNATED 
        PARENT.] 
           Subdivision 1.  [GENERAL.] A designated parent has all the 
        powers regarding the care, custody, and financial interests of a 
        minor child specified in the designated parent agreement, except 
        as otherwise provided in this section.  A designated parent does 
        not have the power to consent to marriage or adoption of the 
        child. 
           Subd. 2.  [NOTICE TO NONCUSTODIAL PARENT; VISITATION.] As 
        soon as practicable after assuming care of a child, the 
        designated parent shall notify any noncustodial parent that the 
        designated parent has assumed care of the child.  Court-ordered 
        visitation rights of a noncustodial parent continue while the 
        child is in the care of the designated parent, unless otherwise 
        modified by the court.  A designated parent agreement does not 
        affect the right of a parent without physical custody to bring a 
        custody motion under chapter 518. 
           Subd. 3.  [CHILD SUPPORT.] A preexisting child support 
        order is not suspended or terminated during the time a child is 
        cared for by a designated parent, unless otherwise provided by 
        court order.  A designated parent has a cause of action for 
        child support against an absent parent under section 256.87, 
        subdivision 5. 
           Sec. 7.  [257A.04] [DURATION.] 
           Subdivision 1.  [IN GENERAL.] Unless canceled earlier under 
        section 257A.07 by a parent or the designated parent, a 
        designated parent agreement is effective for four years, after 
        which date a new agreement may be entered.  The new agreement 
        may name the same or a different designated parent.  A 
        designated parent agreement automatically terminates as to any 
        child when that child reaches age 18 or is lawfully married. 
           Subd. 2.  [DEATH OF A PARENT.] If a parent dies while a 
        designated parent agreement is in effect, and there is no living 
        parent able to care for the child, the designated parent shall 
        care for the child until a guardian appointed by will is able to 
        take custody of the child or until a court order otherwise 
        provides for the care of the child.  However, the designated 
        parent may cancel the agreement at any time under section 
        257A.07. 
           Sec. 8.  [257A.05] [FORM.] 
           Subdivision 1.  [WRITING.] A designated parent agreement 
        must be made in writing and all signatures must be notarized. 
           Subd. 2.  [DESIGNATED PARENT INDICATION ON DRIVER'S 
        LICENSE.] A parent who wishes to have a designated parent 
        indication placed on the parent's driver's license or 
        identification card under section 171.07, subdivision 11, must 
        submit a copy of the notarized designated parent agreement to 
        the department of public safety and pay any required fee. 
           Sec. 9.  [257A.06] [MULTIPLE AGREEMENTS.] 
           If more than one otherwise valid designated parent 
        agreement exists regarding the same child, the priority among 
        agreements is determined as follows: 
           (1) an agreement that has been submitted to the department 
        of public safety has priority over any other agreement; 
           (2) if one or more agreements have been submitted to the 
        department of public safety under section 171.07, subdivision 
        11, the agreement with the most recent date that has been 
        submitted to the department controls; and 
           (3) if multiple agreements exist, none of which has been 
        submitted to the department of public safety, the agreement with 
        the most recent date controls. 
           Sec. 10.  [257A.07] [CANCELLATION.] 
           Subdivision 1.  [HOW AND BY WHOM.] A parent may cancel a 
        designated parent agreement at any time.  The parent shall 
        notify the designated parent of the cancellation.  If the 
        designated parent is caring for the child at the time of 
        cancellation, the child must be returned to the parent 
        immediately upon the parent's request. 
           A designated parent may decline to serve at any time, and 
        the parent must cancel the agreement immediately upon request by 
        the designated parent.  If a designated parent is caring for a 
        child when the designated parent cancels the agreement, the 
        parent must take physical custody of the child immediately.  If 
        the parent is unable to resume physical custody at that time: 
           (1) the parent may name a new designated parent to care for 
        the child who shall immediately take custody of the child; or 
           (2) if that is not possible, the designated parent shall 
        contact the local social service agency, which shall assess the 
        needs and circumstances of the child, including the likelihood 
        of the noncustodial parent taking custody, and the need for 
        placement and court action on behalf of the child, if necessary. 
           Subd. 2.  [NOTICE TO DEPARTMENT OF PUBLIC SAFETY.] A parent 
        who has had a designated parent indication placed on the 
        parent's driver's license or identification card under section 
        171.07, subdivision 11, has the responsibility to notify the 
        department of public safety in writing whenever a designated 
        parent agreement is canceled or a new designated parent or 
        alternate is chosen. 
           Sec. 11.  [257A.08] [EXTENDING PERIOD OF CARE.] 
           If a parent is unable to resume caring for a child upon 
        expiration of the period of care indicated in the designated 
        parent agreement, the period of care may be extended for a 
        length of time agreed by the parent and designated parent, but 
        not to exceed one year.  If a parent cannot be contacted or is 
        unable to communicate a decision about the child's care when the 
        agreed period of care expires, the designated parent may: 
           (1) petition the juvenile court to authorize continued care 
        by the designated parent until the parent is able to resume the 
        child's care, or for one year, whichever is sooner; or 
           (2) contact the local social service agency, which shall 
        assess the needs and circumstances of the child, including the 
        likelihood of the noncustodial parent taking custody of the 
        child, and the need for placement and court action on behalf of 
        the child, if necessary. 
           Sec. 12.  [257A.09] [NOTICE TO LOCAL SOCIAL SERVICE AGENCY; 
        INVESTIGATION.] 
           If a child has been in the home of a designated parent for 
        30 days, the designated parent shall promptly notify the local 
        social service agency, any adult siblings of the child, and any 
        living paternal or maternal grandparents, of the following: 
           (1) the child's name, home address, and the name and home 
        address of the child's parents; 
           (2) that the child is in the home under a designated parent 
        agreement; and 
           (3) the length of time the child is expected to remain in 
        the designated parent's home. 
           The local social service agency may visit the child and the 
        home and may continue to visit and supervise the home and the 
        child or take other appropriate action to assure that the 
        welfare of the child is fully protected. 
           Sec. 13.  [257A.10] [LOCAL SOCIAL SERVICE AGENCY 
        EVALUATION.] 
           When a local social service agency assumes responsibility 
        for a child pursuant to a voluntary placement agreement or by 
        order of the court, and the parent requests that placement be 
        with a designated parent, the local social service agency must 
        evaluate the appropriateness of the child's placement with the 
        designated parent.  If placement with the designated parent is 
        deemed to be in the child's best interest, the designated parent 
        must comply with licensure requirements under Minnesota 
        Statutes, chapter 245A, in order to provide foster care for the 
        child. 
           Sec. 14.  Minnesota Statutes 1994, section 260.173, 
        subdivision 2, is amended to read: 
           Subd. 2.  Notwithstanding the provisions of subdivision 1, 
        if the child had been taken into custody pursuant to section 
        260.165, subdivision 1, clause (a) or clause (c)(2), and is not 
        alleged to be delinquent, the child shall be detained in the 
        least restrictive setting consistent with the child's health and 
        welfare and in closest proximity to the child's family as 
        possible.  Placement may be with a child's relative, a 
        designated parent under chapter 257A, or in a shelter care 
        facility. 
           Sec. 15.  Minnesota Statutes 1994, section 524.5-505, is 
        amended to read: 
           524.5-505 [DELEGATION OF POWERS BY PARENT OR GUARDIAN.] 
           A parent or a guardian of a minor or incapacitated person, 
        by a properly executed power of attorney, may delegate to 
        another person, for a period not exceeding six months, any 
        powers regarding care, custody, or property of the minor or 
        ward, except the power to consent to marriage or adoption of a 
        minor ward.  A parent of a minor child may delegate those powers 
        for a period not exceeding one year by a designated parent 
        agreement under chapter 257A. 
           Sec. 16.  [EFFECTIVE DATE.] 
           Sections 1 to 15 are effective July 1, 1996. 
                                   ARTICLE 7
                                STATE-AID SYSTEM
           Section 1.  Minnesota Statutes 1994, section 162.02, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ESTABLISHMENT IN NEW LOCATION OR OVER 
        ESTABLISHED ROADS.] The county board of any county may establish 
        and locate any county state-aid highway on new location where 
        there is no existing road, or it may establish and locate the 
        highway upon or over any established road or street or a 
        specified portion thereof within its limits; provided, that.  
        Except as provided in subdivision 8a, no county state-aid 
        highway shall be established or located within the corporate 
        limits of any city without the approval of the governing body of 
        the city, except that when a county state-aid highway is 
        relocated the approval of the plans by the governing body shall 
        be deemed to be a transfer of the previous location of the 
        highway to the jurisdiction of the city.  The approval shall be 
        in the manner and form required by the commissioner.  
           Sec. 2.  Minnesota Statutes 1994, section 162.02, 
        subdivision 8, is amended to read: 
           Subd. 8.  [APPROVAL BY CITY.] Except as provided in 
        subdivision 8a, no portion of the county state-aid highway 
        system lying within the corporate limits of any city shall be 
        constructed, reconstructed, or improved nor the grade thereof 
        changed without the prior approval of the plans by the governing 
        body of such city and the approval shall be in the manner and 
        form required by the commissioner.  
           Sec. 3.  Minnesota Statutes 1994, section 162.02, is 
        amended by adding a subdivision to read: 
           Subd. 8a.  [DISPUTE RESOLUTION BOARD.] If a city has failed 
        to approve establishment, construction, reconstruction, or 
        improvement of a county state-aid highway within its corporate 
        limits under subdivision 7 or 8, the county board may, by 
        resolution, request the commissioner to appoint a dispute 
        resolution board consisting of one county commissioner, one 
        county engineer, one city council member or city mayor, one city 
        engineer, and one representative of the department of 
        transportation.  The board shall review the proposed change and 
        make a recommendation to the commissioner.  Notwithstanding any 
        other law, the commissioner may approve the establishment, 
        construction, reconstruction, or improvement of a county 
        state-aid highway recommended by the board. 
           Sec. 4.  Minnesota Statutes 1994, section 162.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORMULA.] After deducting for 
        administrative costs and for the disaster account and research 
        account and state park roads as heretofore provided, the 
        remainder of the total sum provided for in section 162.06, 
        subdivision 1, shall be identified as the apportionment sum and 
        shall be apportioned by the commissioner to the several counties 
        on the basis of the needs of the counties as determined in 
        accordance with the following formula: 
           (1) An amount equal to ten percent of the apportionment sum 
        shall be apportioned equally among the 87 counties.  
           (2) An amount equal to ten percent of the apportionment sum 
        shall be apportioned among the several counties so that each 
        county shall receive of such amount the percentage that its 
        motor vehicle registration for the calendar year preceding the 
        one last past, determined by residence of registrants, bears to 
        the total statewide motor vehicle registration.  
           (3) An amount equal to 30 percent of the apportionment sum 
        shall be apportioned among the several counties so that each 
        county shall receive of such amount the percentage that its 
        total miles lane-miles of approved county state-aid highways 
        bears to the total miles lane-miles of approved statewide county 
        state-aid highways.  In 1997 and subsequent years no county may 
        receive, as a result of an apportionment under this clause based 
        on lane-miles rather than miles of approved county state-aid 
        highways, an apportionment that is less than its apportionment 
        in 1996. 
           (4) An amount equal to 50 percent of the apportionment sum 
        shall be apportioned among the several counties so that each 
        county shall receive of such amount the percentage that its 
        money needs bears to the sum of the money needs of all of the 
        individual counties; provided, that the percentage of such 
        amount that each county is to receive shall be adjusted so that 
        each county shall receive in 1958 a total apportionment at least 
        ten percent greater than its total 1956 apportionments from the 
        state road and bridge fund; and provided further that those 
        counties whose money needs are thus adjusted shall never receive 
        a percentage of the apportionment sum less than the percentage 
        that such county received in 1958.  
           Sec. 5.  Minnesota Statutes 1994, section 162.07, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SCREENING BOARD.] On or before September 1 of 
        each year the county engineer of each county shall forward to 
        the commissioner, on forms prepared by the commissioner, all 
        information relating to the mileage, in lane-miles, of the 
        county state-aid highway system in the county, and the money 
        needs of the county that the commissioner deems necessary in 
        order to apportion the county state-aid highway fund in 
        accordance with the formula heretofore set forth.  Upon receipt 
        of the information the commissioner shall appoint a board 
        consisting of nine the following county engineers.  The board 
        shall be so selected that each county engineer appointed shall 
        be from a different state highway construction district: 
           (1) two county engineers from the metropolitan highway 
        construction district; 
           (2) one county engineer from each nonmetropolitan highway 
        district; and 
           (3) one additional county engineer from each county with a 
        population of 175,000 or more.  
           No county engineer shall be appointed under clause (1) or 
        (2) so as to serve consecutively for more than two four years.  
        The board shall investigate and review the information submitted 
        by each county and shall on or before the first day of November 
        of each year submit its findings and recommendations in writing 
        as to each county's mileage lane-mileage and money needs to the 
        commissioner on a form prepared by the commissioner.  Final 
        determination of the mileage lane-mileage of each system and the 
        money needs of each county shall be made by the commissioner.  
           Sec. 6.  Minnesota Statutes 1994, section 162.07, 
        subdivision 6, is amended to read: 
           Subd. 6.  [ESTIMATES TO BE MADE IF INFORMATION NOT 
        PROVIDED.] In the event that any county shall fail to submit the 
        information provided for herein, the commissioner shall estimate 
        the mileage lane-mileage and the money needs of the county.  The 
        estimate shall be used in determining the apportionment 
        formula.  The commissioner may withhold payment of the amount 
        apportioned to the county until the information is submitted. 
           Presented to the governor April 4, 1996 
           Signed by the governor April 12, 1996, 2:33 p.m.

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