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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 371-H.F.No. 3203 
                  An act relating to public safety; modifying vehicle 
                  registration and titling provisions; regulating motor 
                  vehicle dealer transactions; allowing electronic 
                  transactions with department of public safety; 
                  modifying provisions governing road inspections, first 
                  hauls, and weight allowances for commercial motor 
                  vehicles and requiring a study; modifying bicycle 
                  registration provisions; modifying traffic regulations 
                  relating to traffic-control signals, railroad grade 
                  crossings, special mobile equipment, vehicle license 
                  plates, and motorcycles; modifying provisions relating 
                  to drivers' licenses and state identification cards; 
                  exempting certain federal funds from statutory 
                  matching requirements; authorizing expenditure of 
                  money on bus service to mitigate traffic impact of 
                  certain highway construction; modifying, clarifying, 
                  and reorganizing motor carrier fuel tax provisions; 
                  authorizing rules; making technical and clarifying 
                  changes; amending Minnesota Statutes 2000, sections 
                  168.011, subdivisions 4, 17, 34; 168.013, subdivision 
                  3; 168.09, subdivisions 1, 3; 168.10, subdivision 1c; 
                  168.187, subdivision 26; 168.27, as amended; 168.31, 
                  subdivision 4; 168.33, subdivision 6, by adding a 
                  subdivision; 168A.01, subdivisions 2, 24, by adding a 
                  subdivision; 168A.04, subdivision 5; 168A.05, 
                  subdivision 5a; 168A.09, subdivision 1; 168A.11, 
                  subdivision 2; 168A.12, subdivisions 1, 2; 168A.15, by 
                  adding a subdivision; 168A.154; 168A.18; 168A.19, 
                  subdivision 2; 168A.20, subdivisions 2, 3, 4; 168A.24, 
                  subdivision 1; 168C.02, subdivisions 1, 5; 168C.03; 
                  168C.04, subdivision 1; 168C.05; 168C.06; 168C.07; 
                  168C.08; 168C.09; 168C.11; 168C.12; 168C.13, 
                  subdivision 1; 169.06, by adding a subdivision; 
                  169.26, subdivision 1; 169.28, subdivision 1; 169.771, 
                  subdivisions 2, 3; 169.85, subdivisions 1, 2; 169.851, 
                  subdivision 3; 169.86, subdivision 5; 169.974, 
                  subdivision 5; 171.02, subdivisions 1, 5; 171.04, 
                  subdivision 1; 171.05, subdivision 2; 171.055, 
                  subdivision 1; 171.06, subdivisions 1, 3; 171.07, 
                  subdivision 3; 171.13, subdivision 2; 171.165; 
                  296A.23, subdivision 7; Minnesota Statutes 2001 
                  Supplement, sections 168.012, subdivision 1; 169.781, 
                  subdivision 2; 169.79, subdivisions 3, 8, by adding a 
                  subdivision; 171.07, subdivision 1; 221.221, 
                  subdivision 2; proposing coding for new law in 
                  Minnesota Statutes, chapter 168; proposing coding for 
                  new law as Minnesota Statutes, chapter 168D; repealing 
                  Minnesota Statutes 2000, sections 171.30, subdivision 
                  3; 296A.27; 296A.28. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                            PUBLIC SAFETY MISCELLANY 
           Section 1.  Minnesota Statutes 2000, section 168.011, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MOTOR VEHICLE.] (a) "Motor vehicle" means any 
        self-propelled vehicle designed and originally manufactured to 
        operate primarily upon public roads and highways, and not 
        operated exclusively upon railroad tracks and.  It includes any 
        vehicle propelled or drawn by a self-propelled vehicle and 
        includes vehicles known as trackless trolleys which that are 
        propelled by electric power obtained from overhead trolley wires 
        but not operated upon rails, except.  It does not include 
        snowmobiles, manufactured homes, and or park trailers.  
           (b) "Motor vehicle" also includes an all-terrain vehicle, 
        as defined in section 84.92, subdivision 8, which that (1) has 
        at least four wheels, (2) is owned and operated by a physically 
        disabled person, and (3) displays both physically disabled 
        license plates and a physically disabled certificate issued 
        under section 169.345, subdivision 3. 
           (c) Motor vehicle does not include an all-terrain vehicle 
        as defined in section 84.92, subdivision 8; except (1) an 
        all-terrain vehicle described in paragraph (b), or (2) an 
        all-terrain vehicle licensed as a motor vehicle before August 1, 
        1985, in which case.  The owner may continue to license it an 
        all-terrain vehicle described in clause (2) as a motor vehicle 
        until it is conveyed or otherwise transferred to another owner, 
        is destroyed, or fails to comply with the registration and 
        licensing requirements of this chapter. 
           Sec. 2.  Minnesota Statutes 2000, section 168.011, 
        subdivision 34, is amended to read: 
           Subd. 34.  [FLEET.] "Fleet" means a combination of 100 50 
        or more vehicles and trailers owned by a person solely for the 
        use of that person or employees of the person and registered in 
        this state under section 168.127.  It does not include vehicles 
        licensed under section 168.187. 
           Sec. 3.  Minnesota Statutes 2001 Supplement, section 
        168.012, subdivision 1, is amended to read: 
           Subdivision 1.  [VEHICLES EXEMPT FROM TAX, FEES, OR PLATE 
        DISPLAY.] (a) The following vehicles are exempt from the 
        provisions of this chapter requiring payment of tax and 
        registration fees, except as provided in subdivision 1c:  
           (1) vehicles owned and used solely in the transaction of 
        official business by the federal government, the state, or any 
        political subdivision; 
           (2) vehicles owned and used exclusively by educational 
        institutions and used solely in the transportation of pupils to 
        and from those institutions; 
           (3) vehicles used solely in driver education programs at 
        nonpublic high schools; 
           (4) vehicles owned by nonprofit charities and used 
        exclusively to transport disabled persons for educational 
        purposes; 
           (5) vehicles owned and used by honorary consul; 
           (6) ambulances owned by ambulance services licensed under 
        section 144E.10, the general appearance of which is 
        unmistakable; and 
           (7) (6) vehicles owned by a commercial driving school 
        licensed under section 171.34, or an employee of a commercial 
        driving school licensed under section 171.34, and the vehicle is 
        used exclusively for driver education and training. 
           (b) Vehicles owned by the federal government, municipal 
        fire apparatuses including fire-suppression support vehicles, 
        police patrols, and ambulances, the general appearance of which 
        is unmistakable, are not required to register or display number 
        plates.  
           (c) Unmarked vehicles used in general police work, liquor 
        investigations, or arson investigations, and passenger 
        automobiles, pickup trucks, and buses owned or operated by the 
        department of corrections, must be registered and must display 
        appropriate license number plates, furnished by the registrar at 
        cost.  Original and renewal applications for these license 
        plates authorized for use in general police work and for use by 
        the department of corrections must be accompanied by a 
        certification signed by the appropriate chief of police if 
        issued to a police vehicle, the appropriate sheriff if issued to 
        a sheriff's vehicle, the commissioner of corrections if issued 
        to a department of corrections vehicle, or the appropriate 
        officer in charge if issued to a vehicle of any other law 
        enforcement agency.  The certification must be on a form 
        prescribed by the commissioner and state that the vehicle will 
        be used exclusively for a purpose authorized by this section.  
           (d) Unmarked vehicles used by the departments of revenue 
        and labor and industry, fraud unit, in conducting seizures or 
        criminal investigations must be registered and must display 
        passenger vehicle classification license number plates, 
        furnished at cost by the registrar.  Original and renewal 
        applications for these passenger vehicle license plates must be 
        accompanied by a certification signed by the commissioner of 
        revenue or the commissioner of labor and industry.  The 
        certification must be on a form prescribed by the commissioner 
        and state that the vehicles will be used exclusively for the 
        purposes authorized by this section. 
           (e) Unmarked vehicles used by the division of disease 
        prevention and control of the department of health must be 
        registered and must display passenger vehicle classification 
        license number plates.  These plates must be furnished at cost 
        by the registrar.  Original and renewal applications for these 
        passenger vehicle license plates must be accompanied by a 
        certification signed by the commissioner of health.  The 
        certification must be on a form prescribed by the commissioner 
        and state that the vehicles will be used exclusively for the 
        official duties of the division of disease prevention and 
        control.  
           (f) Unmarked vehicles used by staff of the gambling control 
        board in gambling investigations and reviews must be registered 
        and must display passenger vehicle classification license number 
        plates.  These plates must be furnished at cost by the 
        registrar.  Original and renewal applications for these 
        passenger vehicle license plates must be accompanied by a 
        certification signed by the board chair.  The certification must 
        be on a form prescribed by the commissioner and state that the 
        vehicles will be used exclusively for the official duties of the 
        gambling control board.  
           (g) All other motor vehicles must be registered and display 
        tax-exempt number plates, furnished by the registrar at cost, 
        except as provided in subdivision 1c.  All vehicles required to 
        display tax-exempt number plates must have the name of the state 
        department or political subdivision, nonpublic high school 
        operating a driver education program, or licensed commercial 
        driving school, plainly displayed on both sides of the vehicle; 
        except that each state hospital and institution for the mentally 
        ill and mentally retarded may have one vehicle without the 
        required identification on the sides of the vehicle, and county 
        social service agencies may have vehicles used for child and 
        vulnerable adult protective services without the required 
        identification on the sides of the vehicle.  This identification 
        must be in a color giving contrast with that of the part of the 
        vehicle on which it is placed and must endure throughout the 
        term of the registration.  The identification must not be on a 
        removable plate or placard and must be kept clean and visible at 
        all times; except that a removable plate or placard may be 
        utilized on vehicles leased or loaned to a political subdivision 
        or to a nonpublic high school driver education program. 
           Sec. 4.  Minnesota Statutes 2000, section 168.013, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION; CANCELLATION; EXCESSIVE GROSS 
        WEIGHT FORBIDDEN.] (a) The applicant for all licenses based on 
        gross weight shall state the unloaded weight of the motor 
        vehicle, trailer, or semitrailer and the maximum load the 
        applicant proposes to carry thereon on it, the sum of 
        which shall constitute constitutes the gross weight upon which 
        the license tax shall must be paid, but in no case shall.  
        However, the declared gross weight upon which the tax is 
        paid must not 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. 
           (b) The gross weight of no a motor vehicle, trailer, or 
        semitrailer shall must not exceed the gross weight upon which 
        the license tax has been paid by more than four percent or 1,000 
        pounds, whichever is greater. 
           (c) The gross weight of the motor vehicle, trailer, or 
        semitrailer for which the license tax is paid shall must be 
        indicated by a distinctive character on the license plate or 
        plates except as provided in subdivision 12 and the plate or 
        plates shall must be kept clean and clearly visible at all times.
           (d) 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, is 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 a motor vehicle, 
        trailer, or semitrailer 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, the owner, driver, or user of the motor vehicle, 
        trailer, or semitrailer used to commit the violation, 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 is 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 must nevertheless be paid 
        into the highway fund, but the additional tax thus paid shall 
        does not authorize or permit any person to operate 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 applies to 
        increase the authorized weight and pay pays 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 of an owner, driver, or user of a 
        motor vehicle, trailer, or semitrailer 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 the vehicle or trailer with an 
        axle weight exceeding the maximum lawful axle load as provided 
        in section 169.825 by 25 percent or more, and in addition to any 
        penalty imposed for the misdemeanor, the registrar shall have 
        either (i) cancel the reciprocity privileges on the vehicle 
        involved if the vehicle is being operated under 
        reciprocity canceled by the registrar, or (ii) if the vehicle is 
        not being operated under reciprocity, cancel 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 (i)
        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 (ii) 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 must 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 is 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 must be 
        at the full annual registration fee without regard to the 
        percentage of vehicle miles traveled in this state.  
           Sec. 5.  Minnesota Statutes 2000, section 168.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REGISTRATION REQUIRED.] No trailer or 
        motor vehicle, except as is exempted by section 168.012, shall 
        use may be used or be operated upon the public streets or 
        highways of the state in any calendar year until it is 
        registered, as provided in this section, and the motor vehicle 
        tax and fees as provided in this chapter are paid, and the 
        number plates issued for the trailer or motor vehicle are 
        displayed on the vehicle it.  No trailer or motor vehicle, 
        except as provided by section 168.012, which shall for any 
        reason is not be subject to taxation as provided in this 
        chapter, shall use may be used or be operated upon the public 
        streets or highways of this state until it is registered, as 
        provided in this section, and shall display displays number 
        plates as required by the provisions of this chapter, except 
        that the purchaser of a new trailer or motor vehicle may operate 
        that motor vehicle it without plates if the permit authorized by 
        section 168.091 or 168.092 is displayed. 
           Sec. 6.  Minnesota Statutes 2000, section 168.09, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PRORATABLE VEHICLES; OTHER VEHICLES.] (a) Plates 
        or other insignia issued for a motor vehicle registered under 
        the provisions of section 168.187 for a calendar year shall be 
        displayed on the motor vehicle not later than 12:01 a.m. on 
        March 2 of the year unless extended by the registrar for the 
        period of time required for the issuance of the new plates or 
        insignia.  The commissioner of public safety shall register all 
        motor vehicles registered under section 168.187 for a period of 
        14 months for the registration year 1994 to implement the 
        provisions of this subdivision.  The registration year for 
        vehicles registered under section 168.187, as provided in this 
        section shall be, is from March 1 to the last day of February 
        for 1995 and succeeding years.  
           (b) Except for a motor vehicle registered under section 
        168.017 or 168.187, plates or other insignia issued for a 
        self-propelled motor vehicle registered for over 27,000 
        pounds except a motor vehicle registered under the provision of 
        sections 168.017 and 168.187 shall be displayed on the vehicle 
        not later than 12:01 a.m. on March 2 of the year, nor and, 
        except for recreational equipment, not earlier than 12:01 a.m. 
        on February 15 of the year, unless otherwise extended by the 
        registrar for the period of time required for the issuance of 
        issuing the new plates or insignia. 
           (c) Except for a motor vehicle registered under section 
        168.017 or 168.187, plates or other insignia issued for a 
        self-propelled vehicle registered for 27,000 pounds or less and 
        all other motor vehicles except those registered under the 
        provisions of section 168.017 or 168.187 shall be displayed not 
        later than 12:01 a.m. on March 2 of the year, and, except for 
        recreational equipment, not earlier than January 1 of the year 
        unless otherwise extended by the registrar for the period of 
        time required for the issuance of issuing the new plates or 
        insignia.  The registration year for all vehicles as provided in 
        this paragraph and paragraph (b) shall be is from March 1 to the 
        last day of February for 1979 and succeeding years. 
           Sec. 7.  Minnesota Statutes 2000, section 168.10, 
        subdivision 1c, is amended to read: 
           Subd. 1c.  [COLLECTOR'S VEHICLE, COLLECTOR LICENSE.] (a) 
        The owner of any motor vehicle, including any truck, that is at 
        least 20 model years old and, was manufactured after 1935, or 
        any motor vehicle of a defunct make defined as any car or truck 
        originally licensed as a separate identifiable make as 
        designated by the division of motor vehicles, and is owned and 
        operated solely as a collector's vehicle, shall be listed list 
        the vehicle for taxation and registration as follows:  
           (1) execute an affidavit shall be executed stating the name 
        and address of the person from whom purchased and of the new 
        owner, the make of the motor vehicle, the year and number of the 
        model, the manufacturer's identification number, and that the 
        vehicle is owned and operated solely as a collector's item and 
        not for general transportation purposes.  The owner must also; 
        and 
           (2) prove that the owner also has one or more vehicles with 
        regular license plates.  
        If the registrar is satisfied that the affidavit is true and 
        correct and the owner pays a $25 tax, the registrar shall list 
        the vehicle for taxation and registration and shall issue a 
        single number plate. 
           (b) The number plate issued shall bear the inscription 
        "Collector," "Minnesota," and the registration number or other 
        combination of characters authorized under section 168.12, 
        subdivision 2a, but no date.  The number plate is valid without 
        renewal as long as the vehicle is in existence.  The registrar 
        has the power to revoke the plate for failure to comply with 
        this subdivision. 
           Sec. 8.  [168.1255] [SPECIAL VETERAN CONTRIBUTION LICENSE 
        PLATES.] 
           Subdivision 1.  [GENERAL REQUIREMENTS AND PROCEDURES.] The 
        registrar shall issue special veteran contribution license 
        plates to an applicant who: 
           (1) is a veteran, as defined in section 197.447; 
           (2) is an owner or joint owner of a passenger automobile, 
        pickup truck, or van; 
           (3) pays a fee of $10 to cover the costs of handling and 
        manufacturing the plates; 
           (4) pays the registration tax required under section 
        168.013; 
           (5) pays the fees required under this chapter; 
           (6) pays an additional one-time World War II memorial 
        contribution of $30, which the department shall retain until all 
        start-up costs associated with the development and issuing of 
        the plates have been recovered, after which the commissioner 
        shall deposit contributions in the World War II donation match 
        account; and 
           (7) complies with laws and rules governing registration and 
        licensing of vehicles and drivers. 
           Subd. 2.  [DESIGN.] The commissioner of veterans affairs 
        shall design the special plates, subject to the approval of the 
        registrar, that satisfy the following requirements: 
           (1) the special veteran contribution plates must bear the 
        inscription "PROUD TO BE A VETERAN" on the bottom of the plate; 
        and 
           (2) the flag of the United States of America must appear on 
        the left side of the plate just preceding the first letter or 
        numeral of the special license plate number. 
           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 automobile, 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.  Fees collected under 
        this section do not include the contributions collected for the 
        World War II memorial donation match account. 
           Subd. 5.  [RECORD.] The registrar shall maintain a record 
        of the number of special plates issued under this section. 
           Sec. 9.  Minnesota Statutes 2000, section 168.27, as 
        amended by Laws 2001, chapter 151, section 1; and Laws 2001, 
        First Special Session chapter 8, article 2, sections 35 and 36, 
        is amended to read: 
           168.27 [MOTOR VEHICLE DEALERS; VIOLATIONS, PENALTIES.] 
           Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
        section, the following terms in paragraphs (b) to (o) have the 
        meanings given them:. 
           (1) (b) "Leasing motor vehicles" means furnishing a motor 
        vehicle for a fee under a bailor-bailee relationship where no 
        incidences of ownership are intended to be transferred other 
        than the right to use the vehicle for a stated period of time. 
           (2) (c) "Brokering motor vehicles" means arranging sales or 
        leases between buyers and sellers, or lessees and lessors, of 
        motor vehicles and receiving a fee for those services. 
           (3) (d) "Wholesaling motor vehicles" means selling new or 
        used motor vehicles to dealers for resale to the public. 
           (4) (e) "Auctioning motor vehicles" means arranging for and 
        handling the sale of motor vehicles, not the property of the 
        auctioneer, to the highest bidder. 
           (5) (f) "Dealer" includes licensed new motor vehicle 
        dealers, used motor vehicle dealers, motor vehicle brokers, 
        wholesalers, auctioneers, lessors of new or used motor vehicles, 
        scrap metal processors, used vehicle parts dealers, and salvage 
        pools. 
           (6) (g) "Commercial building" means a permanent, enclosed 
        building that is on a permanent foundation and connected to 
        local sewer and water facilities or otherwise complying with 
        local sanitary codes, is adapted to commercial use, and conforms 
        to local government zoning requirements.  "Commercial building" 
        may include strip office malls or garages if a separate entrance 
        and a separate address are maintained and the dealership is 
        clearly identified as a separate business. 
           (7) (h) "Commercial office space" means office space 
        occupying all or part of a commercial building. 
           (8) (i) "Horse trailer" is a trailer designed and used to 
        carry horses and other livestock, which has not more than three 
        axles and a maximum gross weight capacity of not more than 
        24,000 pounds. 
           (9) (j) "Used motor vehicle" means a motor vehicle for 
        which title has been transferred from the person who first 
        acquired it from the manufacturer, distributor, or dealer.  A 
        new motor vehicle will not be considered a used motor vehicle 
        until it has been placed in actual operation and not held for 
        resale by an owner who has been granted a certificate of title 
        on the motor vehicle and has registered the motor vehicle in 
        accordance with this chapter and chapters 168A and 297B, or the 
        laws of the residence of the owner.  
           (10) (k) "New motor vehicle" means a motor vehicle other 
        than described in paragraph (9) (j).  
           (11) (l) "Junked vehicle" means a vehicle that is declared 
        unrepairable under section 168A.151. 
           (12) (m) "Motor vehicle" has the meaning given it in 
        section 168.011, subdivision 4, and also includes a park trailer 
        as defined in section 168.011, subdivision 8. 
           (13) (n) "Motor vehicle broker" means a person who arranges 
        the sale of a motor vehicle between a buyer and a seller, or the 
        lease of a motor vehicle between a lessee and a lessor, for 
        which service the broker receives a fee. 
           (o) "Registration year" means the 12-month period for which 
        a dealer license is issued. 
           Subd. 1a.  [DEALER LICENSE CATEGORIES.] (a) No person shall 
        engage in the business of selling new motor vehicles or shall 
        offer to sell, solicit, deliver, or advertise the sale of new 
        motor vehicles without first acquiring a new motor vehicle 
        dealer license. 
           (b) No person shall engage in the business of selling used 
        motor vehicles or shall offer to sell, solicit, deliver, or 
        advertise the sale of used motor vehicles without first 
        acquiring a used motor vehicle dealer license. 
           (c) No person shall engage in the business of buying or 
        otherwise acquiring vehicles other than hulks; or offering to 
        buy or otherwise acquire, or soliciting or advertising the 
        buying or acquiring of, vehicles other than hulks for processing 
        and selling the metal for remelting without first acquiring a 
        scrap metal processor license. 
           For purposes of this paragraph, a "hulk" is a motor vehicle 
        that is incapable, under its own power, of moving and is 
        incapable of transporting persons or property and has had 
        valuable used parts removed.  Its sole value is its metallic 
        content. 
           (d) No person shall be primarily engaged in the business of 
        buying or otherwise acquiring vehicles for the purpose of 
        dismantling the vehicles and selling used parts and the 
        remaining scrap metals without first acquiring a used vehicle 
        parts dealer license. 
           (e) No person shall engage in the business of storing and 
        displaying, offering to store or display, or soliciting or 
        advertising the storing or displaying, for sale, of damaged or 
        junked vehicles as an agent or escrow agent of an insurance 
        company without first acquiring a vehicle salvage pool license. 
           (f) No person shall engage in the business of leasing motor 
        vehicles or shall offer to lease, solicit or advertise to lease 
        motor vehicles without first acquiring a motor vehicle lessor 
        license. 
           (g) No person shall engage in the business of wholesaling 
        motor vehicles to dealers for resale or shall offer to sell, 
        solicit or advertise the sale of motor vehicles to dealers for 
        resale without first acquiring a motor vehicle wholesaler 
        license. 
           (h) No person shall engage in the business of auctioning 
        motor vehicles for more than one owner at an auction or shall 
        offer to sell, solicit or advertise the sale of motor vehicles 
        at auction without first acquiring a motor vehicle auctioneer 
        license. 
           (i) No person shall engage in the business of brokering 
        motor vehicles without first acquiring a motor vehicle broker's 
        license. 
           Subd. 2.  [NEW MOTOR VEHICLE DEALER.] (a) No person shall 
        engage in the business of selling new motor vehicles or shall 
        offer to sell, solicit, deliver, or advertise the sale of new 
        motor vehicles without first acquiring a new motor vehicle 
        dealer license.  A new motor vehicle dealer licensee shall be 
        entitled thereunder to may sell, broker, wholesale, or auction 
        and to solicit and advertise the sale, broker brokerage, 
        wholesale, or auction of new motor vehicles covered by the 
        franchise and any used motor vehicles or to, and may lease and 
        to solicit and advertise the lease of new motor vehicles and any 
        used motor vehicles and such.  New motor vehicle dealer sales or 
        leases may be either for consumer use at retail or for resale to 
        a dealer.  A new motor vehicle dealer may engage in the business 
        of buying or otherwise acquiring vehicles for dismantling the 
        vehicles and selling used parts and remaining scrap materials 
        under chapter 168A, except that a new motor vehicle dealer may 
        not purchase a junked vehicle from a salvage pool, insurance 
        company, or its agent unless the dealer is also licensed as a 
        used vehicle parts dealer.  Nothing herein shall be construed to 
        require in this subdivision requires an applicant for a dealer 
        license who proposes to deal in:  (1) new and unused motor 
        vehicle bodies; or (2) type A, B, or C motor homes as defined in 
        section 168.011, subdivision 25, to have a bona fide contract or 
        franchise in effect with either the first-stage manufacturer of 
        the motor home or the manufacturer or distributor of any motor 
        vehicle chassis upon which the new and unused motor vehicle body 
        is mounted.  The modification or conversion of a new van-type 
        vehicle into a multipurpose passenger vehicle which is not a 
        motor home does not constitute dealing in new or unused motor 
        vehicle bodies, and a person engaged in the business of selling 
        these van-type vehicles must have a bona fide contract or 
        franchise with the appropriate manufacturer under subdivision 
        10.  A van converter or modifier who owns these modified or 
        converted van-type vehicles may sell them at wholesale to new 
        motor vehicle dealers having a bona fide contract or franchise 
        with the first-stage manufacturer of the vehicles. 
           (b) The requirements pertaining to franchises do not apply 
        to persons who remodel or convert motor vehicles for medical 
        purposes.  For purposes of this subdivision, "medical purpose" 
        means certification by a licensed physician that remodeling or 
        conversion of a motor vehicle is necessary to enable a disabled 
        person to use the vehicle. 
           (c) A new motor vehicle dealer shall not deliver a 
        manufacturer's or importer's certificate of origin for a 
        passenger automobile, pickup truck, or van requiring a 
        certificate of title pursuant according to chapter 168A to any 
        person in conjunction with the sale of a vehicle except to the 
        department, another new motor vehicle dealer licensed to sell 
        the same line or make, or a person whose primary business is 
        picking up and delivering motor vehicle title documents. 
           (d) If a new motor vehicle dealer agrees to sell or lease a 
        new motor vehicle using the services of a motor vehicle broker, 
        the new motor vehicle dealer may not refuse to deliver 
        possession of the vehicle to the buyer or lessee.  This 
        paragraph does not require delivery unless all arrangements have 
        been properly completed for payment, insurance required by law, 
        titling, transfer, and registration of the new vehicle and any 
        trade-in vehicle.  Delivery may take place at or away from the 
        dealership. 
           Subd. 3.  [USED MOTOR VEHICLE DEALER.] No person shall 
        engage in the business of selling or arranging the sale of used 
        motor vehicles or shall offer to sell, solicit, arrange, or 
        advertise the sale of used motor vehicles without first 
        acquiring a used motor vehicle dealer license.  A used motor 
        vehicle dealer licensee shall be entitled thereunder to may 
        sell, lease, broker, wholesale, or auction and to solicit and 
        advertise the sale, lease, broker brokerage, wholesale, or 
        auction of any used motor vehicles for consumer use at retail or 
        for resale to a dealer.  A used motor vehicle dealer may engage 
        in the business of buying or otherwise acquiring vehicles for 
        dismantling the vehicles and selling used parts and remaining 
        scrap materials under chapter 168A, except that a used motor 
        vehicle dealer may not acquire a junked vehicle from a salvage 
        pool, insurance company, or its agent, unless the dealer is also 
        licensed as a used vehicle parts dealer. 
           Subd. 3a.  [SCRAP METAL PROCESSOR.] (a) A person must have 
        a scrap metal processor license to engage in the business of: 
           (1) buying or otherwise acquiring vehicles other than 
        hulks; or 
           (2) offering to buy or otherwise acquire, or soliciting or 
        advertising the buying or acquiring of, vehicles other than 
        hulks for processing and selling the metal for remelting.  For 
        purposes of this subdivision, a "hulk" is a motor vehicle that 
        is incapable, under its own power, of moving and is incapable of 
        transporting persons or property and has had any valuable used 
        parts removed.  Its sole value is its metallic content. 
           (b) A scrap metal processor licensee is entitled to may buy 
        or otherwise acquire vehicles and to solicit and advertise the 
        buying or acquiring of vehicles for processing and selling the 
        metal for remelting.  A scrap metal processor licensee may not 
        acquire a junked vehicle for the purpose of dismantling and 
        selling used vehicle parts and remaining scrap materials unless 
        the scrap metal processor is also licensed as a used vehicle 
        parts dealer. 
           Subd. 3b.  [USED VEHICLE PARTS DEALER.] A person must have 
        a used vehicle parts dealer's license to be primarily engaged in 
        the business of buying or otherwise acquiring vehicles for the 
        purpose of dismantling the vehicles and selling used parts and 
        the remaining scrap metals. 
           Subd. 3c.  [VEHICLE SALVAGE POOL.] A person must have a 
        vehicle salvage pool license to engage in the business of:  
        storing and displaying, offering to store or display, or 
        soliciting or advertising the storing or displaying, for sale, 
        of damaged or junked vehicles as an agent or escrow agent of an 
        insurance company.  A vehicle salvage pool licensee is entitled 
        to may store and display and to may solicit and advertise the 
        storing and displaying, for sale, of damaged or junked vehicles 
        as an agent or escrow agent of an insurance company.  A vehicle 
        salvage pool licensee shall not sell junked vehicles to any 
        party other than a licensed used parts dealer. 
           Subd. 4.  [MOTOR VEHICLE LESSOR.] No person shall engage in 
        the business of leasing motor vehicles or shall offer to lease, 
        solicit or advertise to lease motor vehicles without first 
        acquiring a motor vehicle lessor license.  A motor vehicle 
        lessor licensee shall be entitled thereunder to may lease or 
        rent either by the hour, day or longer period for a fee and to 
        may solicit and advertise the lease or rental of motor 
        vehicles.  A motor vehicle lessor having leased motor vehicles, 
        may sell the vehicles upon their return to the lessor after 
        termination or expiration of the lease without obtaining a used 
        motor vehicle dealer license. 
           Subd. 4a.  [LIMITED USED VEHICLE LICENSE.] A limited used 
        vehicle license shall be provided to a nonprofit charitable 
        organization that qualifies for tax exemption under section 
        501(c)(3) of the Internal Revenue Code whose primary business in 
        the transfer of vehicles is to raise funds for the corporation, 
        who acquires vehicles for sale through donation, and who uses a 
        licensed motor vehicle auctioneer to sell vehicles to retail 
        customers.  This license does not apply to educational 
        institutions whose primary purpose is to train students in the 
        repair, maintenance, and sale of motor vehicles.  A limited used 
        vehicle license allows the organization to accept assignment of 
        vehicles without the requirement to transfer title as provided 
        in section 168A.10 until sold to a retail customer.  Limited 
        used vehicle license holders are not entitled to dealer plates, 
        and shall report all vehicles held for resale to the department 
        of public safety in a manner and time prescribed by the 
        department. 
           Subd. 5a.  [CONSIGNMENT SALES.] No person may solicit, 
        accept, offer for sale, or sell motor vehicles for consignment 
        sale unless licensed as a new or used motor vehicle dealer, a 
        motor vehicle wholesaler, or a motor vehicle auctioneer.  This 
        requirement does not apply to a licensed auctioneer selling 
        motor vehicles at an auction if, in the ordinary course of the 
        auctioneer's business, the sale of motor vehicles is incidental 
        to the sale of other real or personal property.  Incidental 
        means up to a total of ten but no more than ten percent of the 
        items in the posted auction bill are motor vehicles.  
           Subd. 6.  [MOTOR VEHICLE WHOLESALER.] No person shall 
        engage in the business of wholesaling motor vehicles to dealers 
        for resale or shall offer to sell, solicit or advertise the sale 
        of motor vehicles to dealers for resale without first acquiring 
        a motor vehicle wholesaler license.  A motor vehicle wholesaler 
        licensee shall be entitled thereunder to may sell, solicit or 
        advertise the sale of motor vehicles at wholesale for resale; 
        provided that a wholesaler may sell, solicit, or advertise the 
        sale of new motor vehicles only to dealers duly licensed to sell 
        the same make of motor vehicles. 
           Subd. 7.  [MOTOR VEHICLE AUCTIONEER.] No person shall 
        engage in the business of auctioning motor vehicles for more 
        than one owner at an auction or shall offer to sell, solicit or 
        advertise the sale of motor vehicles at auction without first 
        acquiring a motor vehicle auctioneer license.  A motor vehicle 
        auctioneer licensee shall be entitled thereunder to may sell, 
        solicit and advertise the sale of used motor vehicles belonging 
        to others at auction. 
           Subd. 7a.  [MOTOR VEHICLE BROKER.] (a) No person shall 
        engage in the business of brokering motor vehicles without first 
        acquiring a motor vehicle broker's license.  A motor vehicle 
        broker shall provide each buyer or lessee with a written 
        disclosure stating whether the motor vehicle broker receives a 
        fee from the dealers with whom the broker does business.  The 
        new or used motor vehicle dealer shall be is the seller of 
        record in all such transactions.  The motor vehicle dealer may 
        pay the motor vehicle broker a fee for brokering services 
        rendered.  A motor vehicle broker may: 
           (1) advertise and solicit the brokering of new motor 
        vehicles.  A motor vehicle broker shall not advertise or make 
        any representations which state, imply, or suggest that the 
        motor vehicle broker itself sells vehicles, is authorized to 
        sell vehicles, or obtains vehicles directly from the motor 
        vehicle manufacturer.  All advertising or other solicitations by 
        a motor vehicle broker shall disclose that sales of new motor 
        vehicles are arranged through franchised motor vehicle dealers; 
           (2) negotiate or quote the sale price or lease terms of 
        motor vehicles; 
           (3) prepare and deliver documents necessary to the 
        transaction; 
           (4) accept a down payment not to exceed $500, but otherwise 
        may not accept payment in full or in part for a motor vehicle 
        unless the payment is in the form of a negotiable instrument 
        payable to the vehicle dealer; 
           (5) accompany a motor vehicle purchaser or lessee at the 
        time of delivery by the selling dealer of a new motor vehicle; 
        and 
           (6) be present when warranties and safety features are 
        described by the selling dealer in conjunction with the delivery 
        of a new motor vehicle. 
           (b) A motor vehicle broker shall not: 
           (1) engage in the business of selling new or used motor 
        vehicles as described in subdivisions 2 and 3; 
           (2) execute contracts or official documents for the sale or 
        lease of a new motor vehicle; 
           (3) describe a new vehicle's warranties or safety features 
        in conjunction with the delivery of a new motor vehicle; 
           (4) display motor vehicles available for sale or lease; or 
           (5) perform any dealer preparation of new motor vehicles. 
        All dealer preparation shall be performed only by a licensed new 
        motor vehicle dealer. 
           (c) This subdivision does not apply to licensed motor 
        vehicle lessors and shall not be construed to restrict licensed 
        motor vehicle lessors from brokering motor vehicle leases or 
        otherwise engaging in the leasing of motor vehicles in 
        accordance with subdivisions 1 and 4. 
           Subd. 8.  [EXEMPTIONS.] (a) Salespeople and other employees 
        of licensed dealers under this section are not required to 
        obtain individual licenses. 
           (b) Isolated or occasional sales or leases of new or used 
        motor vehicles are exempt from this section.  A person who makes 
        only isolated or occasional sales or leases is not required to 
        be licensed under this section, is not considered to be in the 
        business of selling or leasing motor vehicles, and does not 
        qualify to receive dealer plates under subdivision 16.  
        "Isolated or occasional sales or leases" means:  (1) the sale or 
        lease of a motor vehicle with an actual cash value of $1,000 or 
        less made by a charitable organization; (2) the sale, purchase, 
        or lease of not more than five motor vehicles in a 12-month 
        period, other than pioneer or classic motor vehicles as defined 
        in section 168.10, subdivisions 1a and 1b, or (3) sales by a 
        licensed auctioneer selling motor vehicles at an auction if, in 
        the ordinary course of the auctioneer's business, the sale of 
        motor vehicles is incidental to the sale of other real or 
        personal property.  For purposes of this subdivision, charitable 
        organization means a nonprofit charitable organization that 
        qualifies for tax exemption under section 501(c)(3) of the 
        Internal Revenue Code. 
           (c) A person whose sales of new and used motor vehicles 
        consist solely of sales to political subdivisions and their 
        agencies of vehicles used solely as firefighting equipment is 
        not required to obtain a license under this section.  The person 
        may apply for and receive in-transit plates under subdivision 17 
        in the same manner as licensed motor vehicle dealers for the 
        purpose of allowing firefighting equipment to be transported 
        from the dealer's source of supply or other place of storage to 
        the dealer's place of business, to another place of storage, or 
        directly to the purchaser. 
           Subd. 9.  [APPLICATION.] Application for such license and 
        renewal thereof shall All license applications under this 
        section and all license renewals must be made to the registrar 
        of motor vehicles, shall be in writing, and duly verified by 
        oath.  The applicant shall submit such information as the 
        registrar may require to administer this section, on blanks 
        provided by the registrar for such purpose in a manner and 
        format prescribed by the registrar. 
           Subd. 10.  [PLACE OF BUSINESS.] (a) All licensees under 
        this section shall have an established place of business which 
        shall include as a minimum: 
           (1) For a new motor vehicle dealer, the following: 
           (i) a commercial building owned or under lease by the 
        licensee.  The lease shall must be for a minimum term of one 
        year.  The building shall must contain office space where the 
        books, records, and files necessary to conduct the business are 
        kept and maintained with personnel available during normal 
        business hours.  Dealership business hours must be conspicuously 
        posted on the place of doing business and readily viewable by 
        the public; 
           (ii) a bona fide contract or franchise (1) in effect with a 
        manufacturer or distributor of the new motor vehicles the dealer 
        proposes to sell, broker, wholesale, or auction, or (2) in 
        effect with the first-stage manufacturer or distributor of new 
        motor vehicles purchased from a van converter or modifier which 
        the dealer proposes to sell, broker, wholesale, or auction, or 
        (3) in effect with the final stage manufacturer of the new type 
        A, B, or C motor homes which the dealer proposes to sell, 
        broker, wholesale, or auction; 
           (iii) a facility for the repair and servicing of motor 
        vehicles and the storage of parts and accessories, not to exceed 
        ten miles distance from the principal place of business.  Such 
        The service may be provided through contract with bona fide 
        operators actually engaged in such the services; 
           (iv) an area either indoors or outdoors to display motor 
        vehicles which that is owned or under lease by the licensee; and 
           (v) a sign readily viewable by the public that 
        clearly identifying identifies the dealership by name which is 
        readily viewable by the public. 
           (2) For a used motor vehicle dealer, the following: 
           (i) a commercial building owned or under lease by the 
        licensee.  The lease shall must be for a minimum term of one 
        year.  The building shall must contain office space where the 
        books, records, and files necessary to conduct the business are 
        kept and maintained with personnel available during normal 
        business hours or automatic telephone answering service during 
        normal business hours.  Dealership business hours must be 
        conspicuously posted on the place of doing business and readily 
        viewable by the public; 
           (ii) an area either indoors or outdoors to display motor 
        vehicles which is owned or under lease by the licensee; and 
           (iii) a sign readily viewable by the public that 
        clearly identifying identifies the dealership by name which is 
        readily viewable by the public. 
           (3) For a motor vehicle lessor, the following:  a 
        commercial office space where the books, records, and files 
        necessary to conduct the business are kept and maintained with 
        personnel available during normal business hours or an automatic 
        telephone answering service during normal business hours.  
        Business hours must be conspicuously posted on the place of 
        doing business and readily viewable by the public.  The office 
        space must be owned or under lease for a minimum term of one 
        year by the licensee. 
           (4) For a motor vehicle wholesaler, the following:  a 
        commercial office space where the books, records, and files 
        necessary to conduct the business are kept and maintained with 
        personnel available during normal business hours or an automatic 
        telephone answering service during normal business hours.  The 
        office space must be owned or under lease for a minimum term of 
        one year by the licensee. 
           (5) For a motor vehicle auctioneer, the following:  a 
        permanent enclosed commercial building, within or without the 
        state, on a permanent foundation, owned or under lease by the 
        licensee.  The lease shall must be for a minimum term of one 
        year.  The building shall must contain office space where the 
        books, records, and files necessary to conduct the business are 
        kept and maintained with personnel available during normal 
        business hours or an automatic telephone answering service 
        during normal business hours.  
           (6) For a motor vehicle broker, the following:  a 
        commercial office space where books, records, and files 
        necessary to conduct business are kept and maintained with 
        personnel available during normal business hours, or an 
        automatic telephone answering service available during normal 
        business hours.  A sign, clearly identifying the motor vehicle 
        broker by name and listing the broker's business hours, must be 
        posted in a location and manner readily viewable by a member of 
        the public visiting the office space.  The office space must be 
        owned or under lease for a minimum term of one year by the 
        licensee. 
           (b) If a new or used motor vehicle dealer maintains more 
        than one place of doing business in a county, the separate 
        places shall must be listed on the application.  If additional 
        places of business are maintained outside of one county, 
        separate licenses shall must be obtained for each county. 
           (c) If a motor vehicle lessor, wholesaler, auctioneer, or 
        motor vehicle broker maintains more than one permanent place of 
        doing business, either in one or more counties, the separate 
        places shall must be listed in the application, but only one 
        license shall be is required.  If a lessor proposes to sell 
        previously leased or rented vehicles or if a broker proposes to 
        establish an office at a location outside the seven-county 
        metropolitan area, as defined in section 473.121, subdivision 2, 
        other than cities of the first class, the lessor or broker must 
        obtain a license for each nonmetropolitan area county in which 
        the lessor's sales are to take place or where the broker 
        proposes to locate an office. 
           (d) If a motor vehicle dealer, lessor, wholesaler, or motor 
        vehicle broker does not have direct access to a public road or 
        street, any privately owned roadway providing access to a public 
        road or street must be clearly identified and adequately 
        maintained. 
           (e) A new or used motor vehicle dealer may establish a 
        temporary place of business outside the county where it 
        maintains its licensed location to sell horse trailers 
        exclusively without obtaining an additional license.  
           (f) A new or used motor vehicle dealer may establish a 
        temporary place of business outside the county where it 
        maintains its licensed location to sell recreational equipment 
        exclusively without obtaining an additional license if: 
           (1) the dealer establishes a temporary place of business 
        for the sale of recreational equipment not more than four times 
        during any calendar year; 
           (2) each temporary place of business other than an official 
        county fair or the Minnesota state fair within the seven-county 
        metropolitan area, as defined in section 473.121, subdivision 2, 
        is established jointly with at least four other recreational 
        equipment dealers; 
           (3) each temporary place of business other than an official 
        county fair outside the seven-county metropolitan area, as 
        defined in section 473.121, subdivision 2, is established 
        jointly with at least one other recreational equipment dealer; 
           (4) each establishment of a temporary place of business for 
        the sale of recreational equipment is for no more than 12 
        consecutive days; and 
           (5) the dealer notifies the registrar of motor vehicles of 
        each temporary place of business for the sale of recreational 
        equipment. 
           Subd. 11.  [LICENSES; FEE.] Application for license or 
        notification of a change of location of a license must include a 
        street address, not a post office box, and is subject to the 
        registrar's approval.  Upon the filing of an application for a 
        license and the proper fee, the registrar is authorized, unless 
        the application on its face appears to be invalid, to grant a 
        90-day temporary license and.  During said the 90-day 
        period following issuance of temporary license, the registrar 
        shall investigate the fitness of the applicant, inspect the site 
        and make such other investigation as is necessary to insure 
        compliance with the licensing law.  The registrar may extend the 
        temporary license 30 days.  At the end of the period of 
        investigation the license shall must either be granted or 
        denied.  The license must be denied if within the previous ten 
        years the applicant was enjoined due to a violation of section 
        325F.69 or convicted of violating section 325E.14, 325E.15, 
        325E.16, or 325F.69, or convicted under section 609.53 of 
        receiving or selling stolen vehicles, or convicted of violating 
        United States Code, title 15, sections 1981 to 1991, as amended 
        through December 31, 1984, or pleaded guilty, entered a plea of 
        nolo contendere or no contest, or has been found guilty in a 
        court of competent jurisdiction of any charge of failure to pay 
        state or federal income or sales taxes or felony charge of 
        forgery, embezzlement, obtaining money under false pretenses, 
        theft by swindle, extortion, conspiracy to defraud, or bribery.  
        The license must also be denied if within the previous year the 
        applicant has been denied a license.  A license must also be 
        denied if the applicant has had a dealer license revoked within 
        the previous ten years.  If the application is approved, the 
        registrar shall license the applicant as a motor vehicle dealer 
        for the remainder of the calendar year, one year from the date 
        the temporary license is granted and issue a certificate of 
        license therefor as the registrar may provide upon which shall 
        be placed that must include a distinguishing number of 
        identification of such the dealer.  The license must be 
        displayed in a prominent place in the licensed location.  Each 
        initial application for a license shall must be accompanied by a 
        fee of $50 in addition to the annual fee.  The annual fee shall 
        be $100.  All initial fees and annual fees shall must be paid 
        into the state treasury and credited to the general fund.  If 
        the initial application is received by the registrar after July 
        1 of any year, the first annual fee shall be reduced by one-half.
           Subd. 12.  [GROUNDS FOR SUSPENSION AND REVOCATION.] (a) A 
        license may be suspended or revoked by the registrar of motor 
        vehicles upon proof satisfactory to the registrar of any of the 
        following: 
           (1) violations of any of the provisions of this chapter or 
        chapter 168A, 297B, 325E, or 325F; 
           (2) violation of or refusal to comply with the requests and 
        order of the registrar; 
           (3) failure to make or provide to the registrar all 
        listings, notices, and reports required by the registrar; 
           (4) failure to pay to the registrar all taxes, fees, and 
        arrears due from and by such dealer; 
           (5) failure to duly apply for renewal of license provided 
        for herein in this section; 
           (6) revocation of previous license, of which the records of 
        the registrar relating thereto shall be to the revocation are 
        prima facie evidence of such the previous revocation; 
           (7) failure of continued occupancy of an established place 
        of business; 
           (8) sale of a new and unused current model motor vehicle 
        other than the make of motor vehicle described in the franchise 
        or contract filed with the original application or renewal 
        thereof, without permission from the registrar; 
           (9) sale of a new and unused current model motor vehicle to 
        anyone except for consumer use, or to a dealer duly licensed to 
        sell the same make of motor vehicle; 
           (10) material misstatement or misrepresentation in 
        application for license or renewal thereof; 
           (11) having advertised, printed, displayed, published, 
        distributed, broadcast or televised or caused or permitted to be 
        advertised, printed, displayed, published, distributed, 
        broadcast or televised in any manner whatsoever, or having made 
        orally any statement or representation with regard to the sale, 
        lease or financing of motor vehicles which that is false, 
        deceptive or misleading; 
           (12) having been convicted of violating section 325F.69, or 
        having been enjoined due to a violation of section 325F.69; 
           (13) having been convicted of violating the Minnesota 
        Odometer Law, section 325E.14, 325E.15, or 325E.16, or the 
        federal odometer law, United States Code, title 15, sections 
        1981 to 1991, as amended through December 31, 1984; 
           (14) having been convicted of violating the sale of motor 
        vehicles on Sunday law, section 168.275; 
           (15) having been convicted under section 609.53 of 
        receiving or selling stolen vehicles; or 
           (16) having pleaded guilty, entered a plea of nolo 
        contendere or no contest, or having been found guilty in a court 
        of competent jurisdiction of any charge of failure to pay state 
        or federal income or sales taxes or felony charge of forgery, 
        embezzlement, obtaining money under false pretenses, theft by 
        swindle, extortion, conspiracy to defraud, or bribery.  
           (b) With respect to paragraph (a), clauses (12), (13), 
        (15), and (16), the registrar may suspend or revoke a license 
        immediately upon receiving certification of conviction or 
        permanent injunction.  A hearing is required under subdivision 
        13 within 30 days following a summary suspension or revocation 
        under this paragraph, if a hearing is requested by the licensee. 
           Subd. 12a.  [GROUNDS FOR CANCELLATION; NOTICE REQUIRED.] 
        (a) A license may be canceled by the registrar after notice to 
        the dealer, upon satisfactory proof that the dealer (1) has 
        failed to provide or maintain the required surety bond, (2) has 
        failed to provide or maintain the insurance required under 
        chapter 65B, or (3) is no longer operating at the dealer's 
        licensed location. 
           (b) Surety companies and insurers providing required 
        coverages shall promptly notify the registrar upon canceling any 
        surety bond or required insurance.  The registrar shall notify 
        the dealer of the reason or reasons for cancellation before the 
        cancellation occurs. 
           Subd. 13.  [SUSPENSION AND REVOCATION; HEARING.] (a) The 
        registrar of motor vehicles, upon the registrar's own motion or 
        upon the complaint of another, shall prepare and cause to be 
        served upon the licensee complained of, a written notice or 
        complaint setting forth, in substance, the violations charged, a 
        statement of the deficiencies which exist and any corrective 
        action deemed appropriate.  Said The notice shall must include a 
        statement that in the event corrective action is deemed 
        appropriate and corrective action is not taken, the dealer's 
        license may be suspended or revoked.  The notice shall must 
        require the licensee to appear at the time and place 
        fixed therein in the notice before the registrar, and show cause 
        why the license should not be suspended or revoked. 
           (b) The registrar shall, at the time and place fixed in the 
        notice, proceed to hear and determine the matter on its merits.  
        All hearings shall must be conducted in accordance with the 
        provisions of according to chapter 14, except that the 
        provisions of section 14.50, shall do not apply.  The registrar 
        is authorized to may subpoena witnesses and administer oaths.  
        If the registrar shall find finds the existence of any of the 
        causes for suspension or revocation as set forth in subdivision 
        12 and determine determines that corrective action has not been 
        taken or that corrective action will not prevent repetition of 
        the violations charged or that the public interest will not be 
        served by corrective action and the licensee's license should be 
        suspended or revoked, the registrar shall issue a written order 
        setting out the decision, and.  A copy of such the order shall 
        must be served upon such the licensee in the manner provided by 
        law for the service of summons in a civil action.  On finding 
        that the dealer has violated any of the provisions of this 
        section but that the nature of said the violation or the 
        circumstances thereof are such that a suspension of the license 
        would be adequate, the registrar may, instead of revoking the 
        license suspend it for a period not exceeding 90 days.  On 
        finding that the violation does not justify a suspension only, 
        the registrar shall revoke the license.  Upon a suspension or 
        revocation, if it be of the license of a new or used motor 
        vehicle dealer, said the licensee shall immediately return to 
        the registrar all number plates, including any "in-transit" 
        plates and temporary permits, in its possession and its dealer's 
        license certificate. 
           Subd. 14.  [APPEAL.] Any party or person aggrieved by such 
        an order of suspension, revocation or imposition of a penalty 
        may seek judicial review pursuant to the provisions of according 
        to chapter 14. 
           Subd. 15.  [ENFORCEMENT.] The registrar is hereby 
        authorized to shall enforce this section and is directed to may 
        appoint under the registrar's hand not less than at least seven 
        persons amongst of the registrar's several employees, as 
        inspectors and investigators and who when so appointed, shall.  
        The inspectors and investigators have full authority to enforce 
        this section throughout the state.  The registrar, the 
        registrar's inspectors or investigators, when traveling or 
        otherwise pursuing their duties outside the office of the 
        registrar, shall be paid for their actual expenses incurred out 
        of the same funds as other employees of the registrar of motor 
        vehicles.  The inspectors shall assist licensees in compliance 
        with laws governing licensees and administered hereunder. 
           Subd. 16.  [DEALER PLATES:  DISTINGUISHING NUMBER, FEE, 
        TAX, USE.] (a) The registrar shall issue to every motor vehicle 
        dealer, upon a request from the motor vehicle dealer licensed as 
        provided in subdivision 2 or 3, one or more plates displaying a 
        general distinguishing number.  This subdivision does not apply 
        to a scrap metal processor, a used vehicle parts dealer, or a 
        vehicle salvage pool.  The fee for each of the first four plates 
        is $75 per calendar registration year, of which $60 must be paid 
        to the registrar and the remaining $15 is payable as sales tax 
        on motor vehicles under section 297B.035.  For each additional 
        plate, the dealer shall pay the registrar a fee of $25 and a 
        sales tax on motor vehicles of $15 per calendar registration 
        year.  The registrar shall deposit the tax in the state treasury 
        and it shall to be credited as provided in section 297B.09.  
        Motor vehicles, new or used, owned by the motor vehicle 
        dealership and bearing the number plate, except vehicles leased 
        to the user who is not an employee of the dealer during the term 
        of the lease, held for hire, or customarily used by the dealer 
        as a tow truck, service truck, or parts vehicle, may be driven 
        upon the streets and highways of this state: 
           (1) by the motor vehicle dealer or dealer's spouse, or any 
        full-time employee of the motor vehicle dealer for either 
        private or business purposes; 
           (2) by a part-time employee when the use is directly 
        related to a particular business transaction of the dealer; 
           (3) for demonstration purposes by any prospective buyer 
        thereof for a period of 48 hours or in the case of a truck, 
        truck-tractor, or semitrailer, for a period of seven days; or 
           (4) in a promotional event that lasts no longer than four 
        days in which at least three motor vehicles are involved. 
           (b) A new or used motor vehicle sold by the motor vehicle 
        dealer and bearing the motor vehicle dealer's number plate may 
        be driven upon the public streets and highways for a period of 
        72 hours by the buyer for either of the following purposes:  (1) 
        removing the vehicle from this state for registration in another 
        state, or (2) permitting the buyer to use the motor vehicle 
        before the buyer receives number plates pursuant to 
        registration.  Use of a motor vehicle by the buyer under the 
        provisions of clause (2) of the preceding sentence before the 
        buyer receives number plates pursuant to registration 
        constitutes a use of the public streets or highways for the 
        purpose of the time requirements for registration of motor 
        vehicles. 
           Subd. 17.  [IN-TRANSIT PLATES; FEE.] Every licensed dealer 
        in motor vehicles may make application upon a blank provided by 
        the registrar for that purpose for dealer in-transit license 
        plates for use upon all new or used motor vehicles being 
        transported from the dealer's source of supply, or other place 
        of storage, to the dealer's place of business, or to another 
        place of storage, or from one dealer to another.  The registrar 
        shall then issue to the dealer the number of plates as the 
        dealer may request, upon the payment by the dealer to the 
        registrar of the sum of $5 per plate per calendar registration 
        year.  The registrar may issue in-transit plates, upon the 
        payment of the sum of $5 to the registrar, to dealers duly 
        licensed in other states or provinces upon information furnished 
        in the manner as the registrar may prescribe, and which 
        satisfies the registrar that persons or companies applying 
        therefor for the plates are duly licensed dealers under the laws 
        of the states or provinces. 
           Subd. 18.  [TESTIMONIAL POWERS.] The registrar shall have, 
        and is hereby granted full authority to may issue subpoenas 
        requiring the attendance of witnesses before the registrar, 
        production of books, papers, and other documents, articles, or 
        instruments, and compel the disclosure by such witnesses of all 
        facts known to them relative to the matter under investigation, 
        and shall have full authority to may administer oaths and to 
        take testimony.  All parties disobeying the orders of subpoenas 
        of the registrar shall be are guilty of contempt, as in 
        proceedings in district courts of the state and may be punished 
        in like manner. 
           Subd. 19.  [VIOLATIONS.] Any person, copartnership, or 
        corporation, domestic or foreign, and any officer, or director, 
        or employee of a corporation, domestic or foreign, who shall 
        violate or neglect, fail or refuse to comply with any of the 
        provisions of this section shall be violates this section is 
        guilty of a misdemeanor. 
           Subd. 19a.  [INJUNCTION.] The commissioner or a county 
        attorney may institute a civil action in the name of the state 
        in district court for an injunction prohibiting a violation of 
        this section and for civil penalties not to exceed $1,000 for 
        each violation of subdivision 2, 3, 4, 5a, 6, 7, or 7a.  The 
        court, upon proper proof that the defendant has engaged in a 
        practice prohibited by this section, may enjoin the future 
        commission of that practice and award civil penalties for 
        violations of subdivision 2, 3, 4, 5a, 6, 7, or 7a.  It is not a 
        defense to an action that the state may have adequate remedies 
        at law.  Service of process must be as in any other civil suit, 
        except that where a defendant in the action is a natural person 
        or firm residing outside the state, or is a foreign corporation, 
        service of process may also be made by personal service outside 
        the state; in the manner provided by section 5.25; or as the 
        court may direct.  Process is valid if it satisfies the 
        requirements of due process of law, whether or not the defendant 
        is doing business in Minnesota regularly or habitually.  Nothing 
        in this subdivision limits the rights or remedies otherwise 
        available to persons under common law or other statutes of this 
        state. 
           Subd. 20.  [APPLICATION TO SALE OF OTHER VEHICLES.] (a) 
        This section does not apply: 
           (1) to any person, copartnership, or corporation engaged in 
        the business of selling vehicles designed to operate exclusively 
        over snow, motor scooters, motorized wheelchairs, utility 
        trailers, farm wagons, farm trailers, or farm tractors or other 
        farm implements, whether self-propelled or not and even though a 
        vehicle listed in this clause may be equipped with a trailer 
        hitch; or 
           (2) to any person licensed as a real estate broker or 
        salesperson pursuant to chapter 82, who engages in the business 
        of selling, who offers to sell, or who solicits or advertises 
        the sale of manufactured homes affixed to land. 
           (b) However, this section does apply to a person, 
        copartnership, or corporation described in paragraph (a) who is 
        also engaged in the business of selling other motor vehicles or 
        manufactured homes within the provisions of this section. 
           (c) As used in this subdivision, "utility trailer" means a 
        motorless vehicle, other than a boat trailer or snowmobile 
        trailer, equipped with one or two wheels, having a gross vehicle 
        weight of 4,000 pounds or less, and used for carrying property 
        on its own structure while being drawn by a motor vehicle. 
           Subd. 22.  [DEALER LICENSE FOR TRAILERS, MOTORIZED 
        BICYCLES; PLATES, FEES; EXEMPTIONS.] Any person, copartnership, 
        or corporation having a permanent enclosed commercial building 
        or structure either owned in fee or leased and engaged in the 
        business, either exclusively or in addition to any other 
        occupation, of selling motorized bicycles, boat trailers, horse 
        trailers, or snowmobile trailers, may apply to the registrar for 
        a dealer's license.  Upon payment of a $10 fee the registrar 
        shall license the applicant as a dealer for the remainder of the 
        calendar year in which the application was received.  Thereafter 
        The license may be renewed on or before the second day of 
        January of each succeeding year by payment of a fee of $10.  The 
        registrar shall issue to each dealer, upon request of the 
        dealer, dealer plates as provided in subdivision 16 upon payment 
        of $5 for each plate, and the plates may be used in the same 
        manner and for the same purposes as is provided in subdivision 
        16.  Except for motorized bicycle dealers, the registrar shall 
        also issue to the dealer, upon request of the dealer, 
        "in-transit" plates as provided in subdivision 17 upon payment 
        of a fee of $5 for each plate.  This subdivision shall does not 
        be construed to abrogate any of the provisions of this 
        section as the same relates relating to the duties, 
        responsibilities, and requirements of persons, copartnerships, 
        or corporations engaged in the business, either exclusively or 
        in addition to other occupations, of selling motor vehicles or 
        manufactured homes, except that a seller of boat trailers, 
        utility trailers, or snowmobile trailers who is licensed under 
        this subdivision is not required to have a contract or franchise 
        with a manufacturer or distributor of new boat trailers, utility 
        trailers, or new snowmobile trailers the seller proposes to 
        sell, broker, wholesale, or auction.  This section shall does 
        not be construed to require a manufacturer of snowmobile 
        trailers whose manufacturing facility is located outside of the 
        metropolitan area as defined in section 473.121 to have a 
        dealer's license to transport the snowmobile trailers to dealers 
        or retail outlets in the state. 
           Subd. 23.  [REGISTRAR MAY FILE CHARGES.] The registrar or 
        the registrar's appointed inspectors may file charges with the 
        county attorney against any licensee who violates any of the 
        provisions of this section, including but not limited to, the 
        grounds for suspension or revocation set out in subdivision 12.  
        Any violation of this section is a misdemeanor. 
           Subd. 24.  [BONDS.] All persons licensed hereunder 
        according to this section shall keep in full force and effect a 
        bond with a corporate surety to be approved by the registrar of 
        motor vehicles in the following amounts as herein provided; in 
        the case of boat trailer, snowmobile trailer, horse trailer or 
        motorized bicycle dealers in the amount of $5,000; and as to all 
        other persons in the amount of $50,000.  The bond shall must be 
        conditioned on the faithful performance by the licensee of the 
        obligations imposed by the laws of this state, including the 
        conduct required of a licensee by this section and other 
        sections governing the sale or transfer of motor vehicles, and 
        the payment of all taxes, license fees, and penalties.  The bond 
        shall must be for the benefit of the state of Minnesota and any 
        transferor, seller, or purchaser of a motor vehicle for any 
        monetary loss caused by failure of the licensee to meet the 
        obligations enumerated above.  Proceedings on the forfeiture of 
        the bonds shall must be commenced in the district court of the 
        county wherein the business of the licensed person was carried 
        on, or if in more than one county, the county in which the 
        offense occurred.  This subdivision does not apply to a used 
        vehicle parts dealer or a scrap metal processor. 
           Subd. 25.  [PREEMPTION OF LOCAL ORDINANCES.] It is the 
        intent and purpose of this section to establish Subdivision 24 
        establishes a uniform statewide system of bonding motor vehicle 
        dealers and the provisions of.  This section shall supersede and 
        preempt subdivision supersedes and preempts all bonding 
        requirements imposed by any local government unit. 
           Subd. 26.  [ADVERTISING DISCLOSURE.] All advertising by a 
        motor vehicle dealer must disclose that the vehicle is being 
        offered for sale by a dealer through use of the dealership name, 
        the term "dealer," or the abbreviation "DLR."  A classified 
        advertisement in a print medium must also include the dealer's 
        license number. 
           Subd. 27.  [RULES.] The registrar may adopt rules under 
        chapter 14 to govern the issuance and regulation of dealer 
        licenses and dealer plates. 
           Sec. 10.  Minnesota Statutes 2000, section 168.31, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INSTALLMENTS.] If the tax for a vehicle assessed 
        under section 168.013, subdivision 1c, 1d, 1e, or 1g, amounts to 
        more than $400, the owner may pay the tax by installments.  The 
        owner shall tender with the application for registration 
        one-third of the annual tax due or $400, whichever is greater, 
        plus any penalties or arrears, plus a fee of $10.  Instead of 
        this fee, the applicant may furnish a bond, bank letter of 
        credit, or certificate of deposit approved by the registrar of 
        motor vehicles, for the total of the tax still due.  The amount 
        of the bond, letter of credit, or certificate of deposit may 
        include any penalties assessed.  The bond, letter of credit, or 
        certificate of deposit must be for the benefit of the state for 
        monetary loss caused by failure of the vehicle owner to pay 
        delinquent license fees and penalties.  The remainder of the tax 
        due must be paid in two equal installments; the due date of the 
        first installment is the first day of the fifth month of the 
        registration period for which the tax is assessed and the second 
        installment is due on the first day of the ninth month of the 
        registration period for which the tax is assessed.  When the 
        applicant elects to pay the administrative fee, the registrar 
        shall issue to the applicant distinctive validation 
        stickers indicating the expiration date of a registration.  When 
        the applicant elects to furnish a bond, bank letter, or letter 
        of deposit, the registrar shall issue regular validation 
        stickers for the registration year.  If an owner of a vehicle 
        fails to pay an installment on or before its due date, the 
        vehicle must not be used on the public streets or highways in 
        this state until the installment or installments of the tax 
        remaining due on the vehicle have been paid in full for the 
        licensed year together with a penalty at the rate of $1 per day 
        for the remainder of the month in which the balance of the tax 
        becomes due and $4 a month for each succeeding month or fraction 
        of a month during which the balance of the tax remains unpaid.  
        Upon the payment of the balance of the tax and the penalties, 
        the registrar shall issue a registration certificate to the 
        owner of the vehicle in the manner provided by law.  The 
        registrar shall deny installment payment privileges provided in 
        this subdivision in the subsequent year to any owner on any or 
        all vehicles of the owner who during the current year fails to 
        pay any installment due within one month after the due date. 
           Sec. 11.  Minnesota Statutes 2000, section 168.33, 
        subdivision 6, is amended to read: 
           Subd. 6.  [APPLICATION FORMS FURNISHED.] The registrar 
        shall furnish, from time to time, to those deputy registrars not 
        equipped with electronic transmission technology, forms for 
        listing and for applications for registration, as provided 
        herein, and shall, before January first in each year, furnish to 
        those deputy registrars, and to such others as the registrar 
        shall deem advisable, charts or lists setting forth the tax to 
        which each motor vehicle is subject provide, in a manner and 
        format prescribed by the registrar, necessary forms and 
        information to deputy registrars.  The registrar and deputy 
        registrars shall immediately destroy all number plates 
        surrendered and shall cancel all certificates so surrendered. 
           Sec. 12.  Minnesota Statutes 2000, section 168.33, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [RULES.] The commissioner of public safety may 
        adopt rules for administering and enforcing this section. 
           Sec. 13.  Minnesota Statutes 2000, section 168A.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEALER.] "Dealer" has the meaning given it in 
        section 168.27, subdivision 1. 
           Sec. 14.  Minnesota Statutes 2000, section 168A.01, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [DELIVER.] "Deliver" means to transmit 
        electronically or by other means approved by the registrar. 
           Sec. 15.  Minnesota Statutes 2000, section 168A.01, 
        subdivision 24, is amended to read: 
           Subd. 24.  [VEHICLE.] (a) "Vehicle" means every device in, 
        upon, or by which any person or property is or may be 
        transported or drawn upon a highway, excepting. 
           (b) The term does not include: 
           (1) devices moved by human power or used exclusively upon 
        stationary rails or tracks, but including; or 
           (2) vehicles not originally constructed primarily for use 
        on public roads and highways. 
           (c) The term does include motorized bicycles as defined in 
        section 168.011, subdivision 27. 
           Sec. 16.  Minnesota Statutes 2000, section 168A.04, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SPECIALLY CONSTRUCTED OR RECONSTRUCTED VEHICLE.] 
        Except as provided in subdivision 6, if the application refers 
        to a specially constructed vehicle or a reconstructed vehicle, 
        the application shall so state and shall contain or be 
        accompanied by: 
           (1) any information and documents the department reasonably 
        requires to establish the ownership of the vehicle and the 
        existence or nonexistence and priority of security interests in 
        it; 
           (2) the certificate of a person authorized by the 
        department that the identifying number of the vehicle has been 
        inspected and found to conform to the description given in the 
        application, or any other proof of the identity of the vehicle 
        the department reasonably requires.; and 
           (3) at the time of application, a written certification to 
        the department that the vehicle to be titled meets the 
        requirements of chapter 169 for vehicles in its class regarding 
        safety and acceptability to operate on public roads and highways.
           Sec. 17.  Minnesota Statutes 2000, section 168A.05, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [POLLUTION CONTROL EQUIPMENT DISCLOSURE.] The 
        certificate of title shall contain a form for disclosure by the 
        transferor of the condition of the vehicle's pollution control 
        equipment as required by section 325E.0951.  The disclosure form 
        must be in a format as prescribed by the registrar. 
           Sec. 18.  Minnesota Statutes 2000, section 168A.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICATION; FORM OF DUPLICATE.] In the 
        event a certificate of title is lost, stolen, mutilated, or 
        destroyed or becomes illegible, the owner or legal 
        representative of the owner named in the certificate may make 
        application to the department or deputy registrar for a 
        duplicate on in a form format prescribed by the department.  The 
        department shall issue a duplicate certificate of title if 
        satisfied that the applicant is entitled thereto.  The duplicate 
        certificate of title shall be plainly marked as a duplicate and 
        mailed or delivered to the owner.  The department shall indicate 
        in its records that a duplicate has been issued.  As a condition 
        to issuing a duplicate certificate of title, the department may 
        require a bond from the applicant in the manner and form format 
        prescribed in section 168A.07, subdivision 1, clause (2).  The 
        duplicate certificate of title shall contain the legend:  "This 
        duplicate certificate of title may be subject to the rights of a 
        person under the original certificate."  
           Sec. 19.  Minnesota Statutes 2000, section 168A.11, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PURCHASE RECEIPT.] A dealer, on buying a vehicle 
        for which the seller does not present a certificate of title, 
        shall at the time of taking delivery of the vehicle execute in 
        triplicate a purchase receipt for the vehicle in a form format 
        designated by the department, and deliver one a copy to the 
        seller.  When a vehicle purchased by a dealer has not been 
        resold after 21 days, the dealer shall mail, transmit, or 
        deliver one copy of the receipt to the department.  In a format 
        and at a time prescribed by the registrar, the dealer shall 
        notify the registrar that the vehicle is being held for resale 
        by the dealer. 
           Sec. 20.  Minnesota Statutes 2000, section 168A.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LAST CERTIFICATE TO DEPARTMENT; 
        APPLICATION.] If the interest of an owner in a vehicle passes to 
        another other than by voluntary transfer, the transferee shall, 
        except as provided in subdivision 2, promptly mail or deliver to 
        the department the last certificate of title, if available, 
        proof of the transfer, and an application for a new certificate 
        in the form format the department prescribes.  
           Sec. 21.  Minnesota Statutes 2000, section 168A.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [OWNER'S INTEREST TERMINATED OR VEHICLE SOLD BY 
        SECURED PARTY.] If the interest of the owner is terminated or 
        the vehicle is sold under a security agreement by a secured 
        party named in the certificate of title, the transferee shall 
        promptly mail or deliver to the department the last certificate 
        of title, if available, an application for a new certificate in 
        the form format the department prescribes, and an affidavit made 
        by or on behalf of the secured party that the interest of the 
        owner was lawfully terminated or the vehicle sold pursuant to 
        the terms of the security agreement.  If the secured party 
        succeeds to the interest of the owner and holds the vehicle for 
        resale, the secured party need not secure a new certificate of 
        title provided that a notice thereof in form a format designated 
        by the department is mailed or delivered by the secured party to 
        the department in duplicate within 48 hours, but upon transfer 
        to another person the secured party shall promptly execute 
        assignment and warranty of title and mail or deliver to the 
        transferee or the department the certificate, if available, the 
        affidavit, and other documents required to be sent to the 
        department by the transferee.  
           Sec. 22.  Minnesota Statutes 2000, section 168A.15, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [MOTORCYCLE WITH NEW ENGINE.] (a) If the 
        commissioner does not require that a new or amended title be 
        issued and stamped as reconstructed or otherwise under this 
        chapter for an automobile being operated with an engine that is 
        not its original engine, then the commissioner shall not require 
        that title issued for a motorcycle being operated with an engine 
        that is not its original engine be stamped or otherwise labeled 
        as reconstructed or otherwise.  
           (b) This subdivision does not prevent the commissioner from 
        requiring that a new application be completed according to 
        section 168A.04 and be filed with the commissioner.  Upon 
        receipt of the completed application and the old title, and 
        subject to section 168A.05, subdivision 1, the commissioner 
        shall issue another certificate of title, which must list the 
        engine number, for the motorcycle with the nonoriginal engine. 
           Sec. 23.  Minnesota Statutes 2000, section 168A.154, is 
        amended to read: 
           168A.154 [SALVAGE VEHICLE TAKEN OUT OF STATE.] 
           A dealer who sells a salvage vehicle to a buyer who intends 
        to remove the vehicle from the state shall report the sale 
        within ten days to the department on in a form format prescribed 
        by the department. 
           Sec. 24.  Minnesota Statutes 2000, section 168A.18, is 
        amended to read: 
           168A.18 [DUTIES OF PARTIES RELATING TO SECURITY INTEREST.] 
           If an owner creates a security interest in a vehicle: 
           (1) The owner shall immediately execute the application in 
        the space provided therefor on the certificate of title, or on 
        in a separate form format the department prescribes, to name the 
        secured party on the certificate, showing the name and address 
        of the secured party, and cause the certificate, application, 
        and the required fees and taxes to be delivered to the secured 
        party. 
           (2) The secured party shall immediately cause the 
        certificate, application, and the required fees and taxes to be 
        mailed or delivered to the department.  
           (3) A second or subordinate secured party does not affect 
        the rights of the first secured party under a security agreement.
           (4) Upon receipt of the certificate of title, application, 
        and the required fees and taxes, the department shall issue a 
        new certificate containing the name and address of the new 
        secured party, and mail or deliver the certificate to the 
        owner.  The secured party or parties shall be issued a 
        notification notified that the security interest has been 
        recorded. 
           Sec. 25.  Minnesota Statutes 2000, section 168A.19, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ASSIGNEE NAMED AS SECURED PARTY.] The assignee 
        may, but need not to perfect the assignment, have the 
        certificate of title endorsed or issued with the assignee named 
        as secured party, upon delivering to the department the 
        certificate and an assignment by the secured party named in the 
        certificate in the form format the department prescribes 
        together with the required fee.  
           Sec. 26.  Minnesota Statutes 2000, section 168A.20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CERTIFICATE WITH PRIOR SECURED PARTY; RELEASE.] 
        Upon the satisfaction of a security interest in a vehicle for 
        which the certificate of title is in the possession of a prior 
        secured party, the secured party whose security interest is 
        satisfied shall within 15 days, or seven days if satisfied by a 
        dealer licensed under section 168.27, subdivision 2, 3, or 4, 
        execute a release in the form format the department prescribes 
        and deliver the release to the owner or any person who delivers 
        to the secured party an authorization from the owner to receive 
        it.  The secured party in possession of the certificate of title 
        shall either deliver the certificate to the owner, or the person 
        authorized by the owner, for delivery to the department, or upon 
        receipt of the release, mail or deliver it with the certificate 
        to the department, which shall release the subordinate secured 
        party's rights on the certificate or issue a new certificate. 
           Sec. 27.  Minnesota Statutes 2000, section 168A.20, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CERTIFICATE WITH OWNER.] Upon the satisfaction 
        of a security interest in a vehicle for which the certificate of 
        title is in the possession of the owner, the secured party shall 
        within 15 days, or seven days if satisfied by a dealer licensed 
        under section 168.27, subdivision 2, 3, or 4, execute a release 
        of security interest on in the form format prescribed by the 
        department and mail or deliver the notification with release to 
        the owner or any person who delivers to the secured party an 
        authorization from the owner to receive the release.  The 
        secured party may notify the registrar of the satisfaction of 
        lien in a manner prescribed by the department. 
           Sec. 28.  Minnesota Statutes 2000, section 168A.20, 
        subdivision 4, is amended to read: 
           Subd. 4.  [SATISFACTION OF LIEN FOR CHILD SUPPORT; 
        RELEASE.] If the secured party is a public authority or a child 
        support or maintenance obligee with a lien under section 
        168A.05, subdivision 8, upon either the satisfaction of a 
        security interest in a vehicle for which the certificate of 
        title is in the possession of the owner, or the execution by the 
        owner of a written payment agreement determined to be acceptable 
        by the court, a child support magistrate, the public authority, 
        or the obligee, within 15 days, or seven days if satisfied by a 
        dealer licensed under section 168.27, subdivision 2, 3, or 4, 
        the secured party shall execute a release of security interest 
        on in the form format prescribed by the department and mail or 
        deliver the notification with release to the owner or any person 
        who delivers to the secured party an authorization from the 
        owner to receive the release. 
           Sec. 29.  Minnesota Statutes 2000, section 168A.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORMS.] The department shall prescribe and 
        provide suitable forms of applications, certificates of title, 
        notices of security interests, and all other notices and forms 
        necessary to carry out the provisions of sections 168A.01 to 
        168A.31 and shall determine the format in which the forms will 
        appear. 
           Sec. 30.  Minnesota Statutes 2000, section 168C.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SCOPE.] For purposes of Laws 1976, this 
        chapter 199, the terms defined in this section shall have the 
        meanings given them. 
           Sec. 31.  Minnesota Statutes 2000, section 168C.02, 
        subdivision 5, is amended to read: 
           Subd. 5.  [LICENSE PLATE.] "License plate" means a tag, 
        plate, seal, sticker, or other device which that can be securely 
        attached to a bicycle and that is issued upon registration of 
        the bicycle. 
           Sec. 32.  Minnesota Statutes 2000, section 168C.03, is 
        amended to read: 
           168C.03 [REGISTRATION APPLICATION.] 
           On or after March 1, 1977 any owner of a bicycle may apply 
        for registration of the bicycle to the commissioner, to any 
        deputy registrar of motor vehicles acting pursuant to section 
        168.33, or to any deputy registrar of bicycles appointed by the 
        commissioner pursuant to section 168C.11.  Applications shall 
        contain the name and address of the owner, the signature of the 
        owner, the name and address of the person from whom purchased, 
        the date of purchase, the date of registration, the make, serial 
        number, and any additional information as the commissioner may 
        require.  Applications shall be on a three-part form provided by 
        the commissioner.  The original shall be retained by or 
        immediately forwarded to the commissioner, the second copy shall 
        be retained by the purchaser and the third copy shall be 
        retained for one year by the deputy registrar, if any, who 
        received the application must be in a format prescribed by the 
        commissioner and contain information required by the 
        commissioner to license a bicycle.  The commissioner shall 
        designate a number to be stamped or otherwise permanently 
        affixed on the frames of bicycles on which no serial number can 
        be found, or on which the number is illegible or insufficient 
        for identification purposes. 
           Sec. 33.  Minnesota Statutes 2000, section 168C.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [THREE-YEAR REGISTRATION FEE; PROCEDURES.] 
        The registration fee for bicycles shall be is $9 after July 1, 
        1991.  These fees shall must be paid at the time of registration.
        The fees, and any donations in excess of the fees, must be 
        deposited in a bicycle transportation account in the special 
        revenue fund.  Proof of purchase ownership is required for 
        registration.  Bicycles lacking proof of purchase ownership may 
        be registered if there is no evidence that the bicycle is 
        stolen.  However, the registration record must be marked to 
        indicate that no proof of purchase was provided.  The 
        registration is valid for three calendar years.  A person 
        registering a bicycle may add an additional amount to the 
        registration fee, and all amounts so added must be deposited in 
        the same manner as registration fees.  A person registering a 
        bicycle must, at the time of registration, be informed that a 
        registrant may add an additional amount to the fee and that all 
        such additional amounts will be used for the purposes specified 
        in subdivision 2. 
           Sec. 34.  Minnesota Statutes 2000, section 168C.05, is 
        amended to read: 
           168C.05 [REPORT OF TRANSFER.] 
           Every person who sells or transfers ownership of any 
        bicycle registered pursuant to Laws 1976, this chapter 199 shall 
        report the sale or transfer to the commissioner, indicating the 
        name and address of the person to whom the bicycle was sold or 
        transferred.  The report shall be made within 14 days of the 
        sale or transfer.  The report of sale must include the 
        information required by the commissioner and be in the format 
        prescribed by the commissioner. 
           Sec. 35.  Minnesota Statutes 2000, section 168C.06, is 
        amended to read: 
           168C.06 [NOTIFICATION OF CHANGE OF ADDRESS.] 
           Upon moving or change of address, the owner of a bicycle 
        registered pursuant to Laws 1976, this chapter 199 shall notify 
        the commissioner in writing the format and manner prescribed by 
        the commissioner of the new address within 14 days. 
           Sec. 36.  Minnesota Statutes 2000, section 168C.07, is 
        amended to read: 
           168C.07 [LICENSE PLATES.] 
           The commissioner shall provide to the registrant a suitable 
        registration card having that has the registration number 
        stamped thereon on the card and indicating that indicates the 
        date of registration, the make and serial number of the bicycle, 
        the owner's name and address, and any additional information as 
        the commissioner may require.  The commissioner shall retain 
        information concerning each registration shall be retained by 
        the commissioner.  The commissioner shall issue a license plate, 
        which shall must be securely attached to the bicycle covered by 
        the registration.  Upon a satisfactory showing that the license 
        plate or registration card has been lost or destroyed, the 
        commissioner shall issue a replacement license plate or 
        registration card upon payment of a fee of $1.  All fees so 
        collected shall must be deposited to the general fund. 
           Sec. 37.  Minnesota Statutes 2000, section 168C.08, is 
        amended to read: 
           168C.08 [ALTERING SERIAL NUMBER; PENALTY.] 
           No A person shall not willfully remove, destroy, mutilate 
        or otherwise alter the serial number or equivalent number of any 
        bicycle designated by the commissioner pursuant to section 
        168C.03.  No A person shall not willfully remove, destroy, 
        mutilate, or otherwise alter any license plate during the time 
        in which the license plate is operative.  Any person who 
        violates the provisions of this section is guilty of a 
        misdemeanor. 
           Sec. 38.  Minnesota Statutes 2000, section 168C.09, is 
        amended to read: 
           168C.09 [THEFT; PENALTY.] 
           Subdivision 1.  [REPORTS; ENTRY INTO CRIME INFORMATION 
        CENTER.] The local law enforcement agency shall report the theft 
        of all bicycles registered pursuant to Laws 1976, this chapter 
        199 to the department of public safety within five days.  
        Reports of the stolen bicycles shall must be entered in the 
        Minnesota crime information center of the department of public 
        safety.  When the stolen bicycle has been recovered by a local 
        law enforcement agency, the agency shall report the recovery to 
        the department of public safety within five days of the recovery 
        in the format and manner prescribed by the commissioner. 
           Subd. 2.  [RECORDS.] The commissioner shall maintain a 
        record of all bicycles registered pursuant to Laws 1976, this 
        chapter 199 in the state in an automated system.  The records 
        shall must be available to all authorized law enforcement 
        agencies through the Minnesota crime information center. 
           Subd. 3.  [VIOLATION AND PENALTY.] Any person who knowingly 
        sells or offers for sale a bicycle registered under Laws 
        1976, this chapter 199 which that is not owned by that person or 
        a family member is guilty of theft and subject to punishment 
        under section 609.52, subdivision 3. 
           Sec. 39.  Minnesota Statutes 2000, section 168C.11, is 
        amended to read: 
           168C.11 [DEPUTY REGISTRARS OF BICYCLES.] 
           Subdivision 1.  [APPOINTMENT.] Subject to the provisions of 
        subdivision 2, the commissioner shall appoint as deputy 
        registrars of bicycles any bicycle dealer, or agent or employee 
        thereof of the dealer, or agent or employee of a nonprofit 
        organization promoting bicycling or in whose activities 
        bicycling plays an integral part, or an agent or employee 
        designated by a municipality that sells bicycles at public 
        auction who applies for appointment in a manner prescribed by 
        the commissioner; provided that concurrently there may be no 
        more than one deputy for each separate place of business of a 
        bicycle dealer.  Deputy registrars of bicycles shall act as 
        agents of the commissioner and may accept registrations as 
        provided in Laws 1976, this chapter 199, except that no deputy 
        registrar of bicycles shall be required to register bicycles 
        sold by other bicycle dealers.  The commissioner, deputy 
        registrars of motor vehicles, and deputy registrars of bicycles 
        may charge and retain an additional $1 per registration granted 
        for their services.  In the case of a deputy registrar of motor 
        vehicles, the $1 shall must be deposited in the treasury of the 
        place for which the deputy registrar is appointed, or if not a 
        public official the deputy registrar shall retain the filing 
        fee.  Other registration fees collected by the commissioner, 
        deputy registrars of motor vehicles, and deputy registrars of 
        bicycles shall must be processed, accounted for, and transmitted 
        to the state treasurer as required by the commissioner. 
           Subd. 2.  [DENIAL, SUSPENSION OR REVOCATION OF 
        APPOINTMENT.] The commissioner, without prior notice or hearing, 
        may issue an order denying, suspending, or revoking any 
        appointment made or applied for pursuant to this section upon 
        finding that the applicant or deputy registrar of bicycles has 
        violated or failed to comply with any provision of Laws 1976, 
        this chapter 199 or any rule adopted hereunder under the 
        authority of this chapter.  Upon the entry of such an order, the 
        commissioner shall promptly serve a copy thereof of the order on 
        the applicant or deputy registrar of bicycles.  The order shall 
        must state the reasons for its issuance and, in the case of a 
        suspension or revocation of appointment, shall must specify that 
        upon the written request of the deputy registrar of bicycles the 
        matter will be set for hearing within 15 days after the receipt 
        of the request,; provided, that with the consent of the deputy 
        registrar of bicycles a hearing may be held subsequent to the 
        expiration of the 15-day period specified herein.  If no hearing 
        is requested, the order will remain remains in effect until it 
        is modified or vacated by the commissioner.  If a hearing is 
        requested, the commissioner, after notice and hearing in 
        accordance with the provisions of chapter 14, shall affirm, 
        modify, or vacate the order. 
           Sec. 40.  Minnesota Statutes 2000, section 168C.12, is 
        amended to read: 
           168C.12 [ADMINISTRATION; RULES.] 
           The commissioner shall adopt rules for the implementation 
        and administration of Laws 1976, this chapter 199 no later than 
        March 1, 1977.  The commissioner shall begin to accept 
        registrations and implement Laws 1976, chapter 199 on March 1, 
        1977.  Nothing herein shall be construed to prevent in this 
        chapter prevents the commissioner from contracting any service 
        provided under Laws 1976, this chapter 199 to any private person 
        or entity or other unit of government. 
           Sec. 41.  Minnesota Statutes 2000, section 168C.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BICYCLE REGISTRATION POWERS OF POLITICAL 
        SUBDIVISION.] After February 28, 1977, No political subdivision 
        may license or register bicycles except as a deputy registrar 
        pursuant to section 168C.11, subdivision 1.  However, any 
        political subdivision which had such power prior to that had the 
        power of a deputy registrar before March 1, 1977, may thereafter 
        require that any or all bicycles used or ridden upon any 
        highway, street, alley, sidewalk, or other public way, or 
        property within the boundaries thereof shall of the public way, 
        must be registered.  Applications for new registrations required 
        pursuant to this subdivision shall must be made to the 
        commissioner in the same manner and subject to the same rules, 
        fees, and penalties as those made voluntarily pursuant to 
        section 168C.03. 
           Sec. 42.  Minnesota Statutes 2000, section 169.06, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [AFFIRMATIVE DEFENSE RELATING TO UNCHANGING 
        TRAFFIC CONTROL SIGNAL.] (a) A person operating a motorcycle who 
        violates subdivision 4 by entering or crossing an intersection 
        controlled by a traffic-control signal against a red light has 
        an affirmative defense to that charge if the person establishes 
        all of the following conditions: 
           (1) the motorcycle has been brought to a complete stop; 
           (2) the traffic-control signal continues to show a red 
        light for an unreasonable time; 
           (3) the traffic-control signal is apparently malfunctioning 
        or, if programmed or engineered to change to a green light only 
        after detecting the approach of a motor vehicle, the signal has 
        apparently failed to detect the arrival of the motorcycle; and 
           (4) no motor vehicle or person is approaching on the street 
        or highway to be crossed or entered or is so far away from the 
        intersection that it does not constitute an immediate hazard. 
           (b) The affirmative defense in this subdivision applies 
        only to a violation for entering or crossing an intersection 
        controlled by a traffic-control signal against a red light and 
        does not provide a defense to any other civil or criminal action.
           Sec. 43.  Minnesota Statutes 2000, section 169.26, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENTS.] (a) Except as provided in 
        section 169.28, subdivision 1, when any person driving a vehicle 
        approaches a railroad grade crossing under any of the 
        circumstances stated in this paragraph, the driver shall stop 
        the vehicle not less than ten feet from the nearest railroad 
        track and shall not proceed until safe to do so.  These 
        requirements apply when:  
           (1) a clearly visible electric or mechanical signal device 
        warns of the immediate approach of a railroad train; or 
           (2) an approaching railroad train is plainly visible and is 
        in hazardous proximity.  
           (b) The fact that a moving train approaching a railroad 
        grade crossing is visible from the crossing is prima facie 
        evidence that it is not safe to proceed. 
           (c) The driver of a vehicle shall stop and remain stopped 
        and not traverse the grade crossing when a human flagger signals 
        the approach or passage of a train or when a crossing gate is 
        lowered warning of the immediate approach or passage of a 
        railroad train.  No person may drive a vehicle past a flagger at 
        a railroad crossing until the flagger signals that the way is 
        clear to proceed or drive a vehicle past a lowered crossing gate.
           Sec. 44.  Minnesota Statutes 2000, section 169.28, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STOP REQUIRED.] (a) The driver of any 
        motor vehicle carrying passengers for hire, or of any school bus 
        whether carrying passengers or not, or of any Head Start bus 
        whether carrying passengers or not, or of any vehicle carrying 
        explosive substances or flammable liquids, or liquid gas under 
        pressure as a cargo or part of a cargo that is required to stop 
        at railroad grade crossings under Code of Federal Regulations, 
        title 49, section 392.10, before crossing at grade any track or 
        tracks of a railroad, shall stop the vehicle not less than ten 
        15 feet nor more than 50 feet from the nearest rail of the 
        railroad and while so stopped shall listen and look in both 
        directions along the track for any approaching train, and for 
        signals indicating the approach of a train, except as 
        hereinafter provided, and shall not proceed until safe to do 
        so.  The driver must not shift gears while crossing the railroad 
        tracks.  
           (b) A school bus or Head Start bus shall not be flagged 
        across railroad grade crossings except at those railroad grade 
        crossings that the local school administrative officer may 
        designate. 
           Sec. 45.  Minnesota Statutes 2001 Supplement, section 
        169.781, subdivision 2, is amended to read: 
           Subd. 2.  [INSPECTION REQUIRED.] It is unlawful for a 
        person to operate or permit the operation of: 
           (1) a commercial motor vehicle registered in Minnesota; or 
           (2) special mobile equipment as defined in section 168.011, 
        subdivision 22, and which is self-propelled, if it is mounted on 
        a commercial motor vehicle chassis, including, but not limited 
        to, a mobile crane, a water well-drilling rig, and a 
        concrete-placement pumper, 
        unless the vehicle displays a valid safety inspection decal 
        issued by an inspector certified by the commissioner, or the 
        vehicle carries (1) proof that the vehicle complies with federal 
        motor vehicle inspection requirements for vehicles in interstate 
        commerce, and (2) a certificate of compliance with federal 
        requirements issued by the commissioner under subdivision 9. 
           Sec. 46.  Minnesota Statutes 2001 Supplement, section 
        169.79, subdivision 3, is amended to read: 
           Subd. 3.  [MOTORCYCLE REAR DISPLAY OF SINGLE PLATE.] If the 
        vehicle is a motorcycle, motor scooter, motorized bicycle, 
        motorcycle sidecar, trailer registered at greater than 3,000 
        pounds gross vehicle weight (GVW), semitrailer, or vehicle 
        displaying a dealer plate, then one license plate must be 
        displayed on the rear of the vehicle.  
           Sec. 47.  Minnesota Statutes 2001 Supplement, section 
        169.79, is amended by adding a subdivision to read: 
           Subd. 3a.  [SMALL TRAILER.] If the vehicle is a trailer 
        with 3,000 pounds or less GVW with lifetime registration, the 
        numbered plate or sticker must be adhered to the side of the 
        trailer frame tongue near the hitch. 
           Sec. 48.  Minnesota Statutes 2001 Supplement, section 
        169.79, subdivision 8, is amended to read: 
           Subd. 8.  [PLATE REGISTRATION STICKERS.] License plates 
        issued to vehicles registered under section 168.017 must display 
        the month of expiration in the lower left corner as viewed 
        facing the plate and the year of expiration in the lower right 
        corner as viewed facing the plate.  License plates issued to 
        vehicles registered under section 168.127 must display either 
        fleet registration validation stickers in the lower right corner 
        as viewed facing the plates or distinctive license plates, 
        issued by the registrar, with "FLEET REG" embossed displayed on 
        the bottom center portion of the plate. 
           Sec. 49.  Minnesota Statutes 2000, section 169.974, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DRIVING RULES.] (a) An operator of a motorcycle 
        shall ride only upon a permanent and regular seat which is 
        attached to the vehicle for that purpose.  No other person shall 
        ride on a motorcycle; except that passengers may ride upon a 
        permanent and regular operator's seat if designed for two 
        persons, or upon additional seats attached to the vehicle to the 
        rear of the operator's seat, or in a sidecar attached to the 
        vehicle; provided, however, that the operator of a motorcycle 
        shall not carry passengers in a number in excess of the designed 
        capacity of the motorcycle or sidecar attached to it.  No 
        passenger shall be carried in a position that will interfere 
        with the safe operation of the motorcycle or the view of the 
        operator. 
           (b) No person shall ride upon a motorcycle as a passenger 
        unless, when sitting astride the seat, the person can reach the 
        foot rests with both feet. 
           (c) No person, except passengers of sidecars or drivers and 
        passengers of three-wheeled motorcycles, shall operate or ride 
        upon a motorcycle except while sitting astride the seat, facing 
        forward, with one leg on either side of the motorcycle. 
           (d) No person shall operate a motorcycle while carrying 
        animals, packages, bundles, or other cargo which prevent the 
        person from keeping both hands on the handlebars. 
           (e) No person shall operate a motorcycle between lanes of 
        moving or stationary vehicles headed in the same direction, nor 
        shall any person drive a motorcycle abreast of or overtake or 
        pass another vehicle within the same traffic lane, except that 
        motorcycles may, with the consent of both drivers, be operated 
        not more than two abreast in a single traffic lane. 
           (f) Motor vehicles including motorcycles are entitled to 
        the full use of a traffic lane and no motor vehicle may be 
        driven or operated in a manner so as to deprive a motorcycle of 
        the full use of a traffic lane. 
           (g) A person operating a motorcycle upon a roadway must be 
        granted the rights and is subject to the duties applicable to a 
        motor vehicle as provided by law, except as to those provisions 
        which by their nature can have no application. 
           (h) Paragraph (e) of this subdivision does not apply to 
        police officers in the performance of their official duties. 
           (i) No person shall operate a motorcycle on a street or 
        highway unless the headlight or headlights are lighted at all 
        times the motorcycle is so operated. 
           (j) A person parking a motorcycle on the roadway of a 
        street or highway must: 
           (1) if parking in a marked parking space, park the 
        motorcycle completely within the marked space; and 
           (2) park the motorcycle in such a way that the front of the 
        motorcycle is pointed or angled toward the nearest lane of 
        traffic to the extent practicable and necessary to allow the 
        operator to (i) view any traffic in both directions of the 
        street or highway without having to move the motorcycle into a 
        lane of traffic and without losing balance or control of the 
        motorcycle, and (ii) ride the motorcycle forward and directly 
        into a lane of traffic when the lane is sufficiently clear of 
        traffic. 
           Sec. 50.  Minnesota Statutes 2000, section 171.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSE REQUIRED.] No person, Except those 
        hereinafter when expressly exempted, a person shall not 
        drive any a motor vehicle upon any a street or highway in this 
        state unless such the person has a license valid under the 
        provisions of this chapter for the type or class of vehicle 
        being driven.  No person The department shall receive not issue 
        a driver's license to a person unless and until the person's 
        license from any jurisdiction has been invalidated by the 
        department.  The department shall provide to the issuing 
        department of any jurisdiction, information that the licensee is 
        now licensed in Minnesota.  No A person shall be is not 
        permitted to have more than one valid driver's license at any 
        time.  No The department shall not issue to a person to whom a 
        current Minnesota identification card has been issued may 
        receive a driver's license, other than an instruction permit or 
        a limited license, unless the person's Minnesota identification 
        card has been invalidated by the department. 
           Sec. 51.  Minnesota Statutes 2000, section 171.02, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EXEMPTION FOR CERTAIN BACKUP SNOWPLOW DRIVERS.] 
        Pursuant to the waiver authorization set forth in Public Law 
        Number 104-59, section 345 (a)(5), a person who operates a 
        commercial motor vehicle for the purpose of removing snow or ice 
        from a roadway by plowing, salting, or sanding is not required 
        to hold a commercial driver's license if the person: 
           (1) is an employee of a local unit of government with a 
        population of 3,000 or less; 
           (2) is operating within the boundaries of the local unit of 
        government; 
           (3) holds a valid class D driver's license authorizing the 
        operation of class B vehicles; and 
           (4) except in the event of a lawful strike, is temporarily 
        replacing the employee who normally operates the vehicle but 
        either is unable to operate the vehicle or is in need of 
        additional assistance due to a snow emergency as determined by 
        the local unit of government. 
           Sec. 52.  Minnesota Statutes 2000, section 171.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PERSONS NOT ELIGIBLE.] The department 
        shall not issue a driver's license: 
           (1) to any person under 18 years unless: 
           (i) the applicant is 16 or 17 years of age and has a 
        previously issued valid license from another state or country or 
        the applicant has, for the 12 consecutive months preceding 
        application, held a provisional license and during that time has 
        incurred (A) no conviction for a violation of section 169A.20, 
        169A.33, 169A.35, or sections 169A.50 to 169A.53, (B) no 
        conviction for a crash-related moving violation, and (C) not 
        more than one conviction for a moving violation that is not 
        crash related.  "Moving violation" means a violation of a 
        traffic regulation but does not include a parking violation, 
        vehicle equipment violation, or warning citation; 
           (ii) the application for a license is approved by (A) 
        either parent when both reside in the same household as the 
        minor applicant or, if otherwise, then (B) the parent or spouse 
        of the parent having custody or, in the event there is no court 
        order for custody, then (C) the parent or spouse of the parent 
        with whom the minor is living or, if subitems (A) to (C) do not 
        apply, then (D) the guardian having custody of the minor or, in 
        the event a person under the age of 18 has no living father, 
        mother, or guardian, or is married or otherwise legally 
        emancipated, then (E) the minor's adult spouse, adult close 
        family member, or adult employer; provided, that the approval 
        required by this item contains a verification of the age of the 
        applicant and the identity of the parent, guardian, adult 
        spouse, adult close family member, or adult employer; and 
           (iii) the applicant presents a certification by the person 
        who approves the application under item (ii), stating that the 
        applicant has driven a motor vehicle accompanied by and under 
        supervision of a licensed driver at least 21 years of age for at 
        least ten hours during the period of provisional licensure; 
           (2) to any person who is 18 years of age or younger, unless 
        the person has applied for, been issued, and possessed the 
        appropriate instruction permit for a minimum of six months, and, 
        with respect to a person under 18 years of age, a provisional 
        license for a minimum of 12 months; 
           (3) to any person who is 19 years of age or older, unless 
        that person has applied for, been issued, and possessed the 
        appropriate instruction permit for a minimum of three months; 
           (4) 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; 
           (5) 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; 
           (6) to any drug-dependent person, as defined in section 
        254A.02, subdivision 5; 
           (7) 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 the person is competent to operate a motor 
        vehicle with safety to persons or property; 
           (8) to any person who is required by this chapter to take a 
        vision, knowledge, or road examination, unless the person has 
        successfully passed the examination.  An applicant who fails 
        four road tests must complete a minimum of six hours of 
        behind-the-wheel instruction with an approved instructor before 
        taking the road test again; 
           (9) to any person who is required under the Minnesota 
        No-Fault Automobile Insurance Act to deposit proof of financial 
        responsibility and who has not deposited the proof; 
           (10) to any person when the commissioner has good cause to 
        believe that the operation of a motor vehicle on the highways by 
        the person would be inimical to public safety or welfare; 
           (11) to any person when, in the opinion of the 
        commissioner, the person is afflicted with or suffering from a 
        physical or mental disability or disease that will affect the 
        person in a manner as to prevent the person from exercising 
        reasonable and ordinary control over a motor vehicle while 
        operating it upon the highways; 
           (12) to a person who is unable to read and understand 
        official signs regulating, warning, and directing traffic; 
           (13) to a child for whom a court has ordered denial of 
        driving privileges under section 260C.201, subdivision 1, or 
        260B.235, subdivision 5, until the period of denial is 
        completed; or 
           (14) to any person whose license has been canceled, during 
        the period of cancellation. 
           Sec. 53.  Minnesota Statutes 2000, section 171.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERSON LESS THAN 18 YEARS OF AGE.] (a) 
        Notwithstanding any provision in subdivision 1 to the contrary, 
        the department may issue an instruction permit to an applicant 
        who is 15, 16, or 17 years of age and who: 
           (1) has completed a course of driver education in another 
        state, has a previously issued valid license from another state, 
        or is enrolled in either: 
           (i) a public, private, or commercial driver education 
        program that is approved by the commissioner of public safety 
        and that includes classroom and behind-the-wheel training; or 
           (ii) an approved behind-the-wheel driver education program 
        when the student is receiving full-time instruction in a home 
        school within the meaning of sections 120A.22 and 120A.24, the 
        student is working toward a home-school diploma, the student's 
        status as a home-school student has been certified by the 
        superintendent of the school district in which the student 
        resides, and the student is taking home-classroom driver 
        training with classroom materials approved by the commissioner 
        of public safety; 
           (2) has completed the classroom phase of instruction in the 
        driver education program; 
           (3) has passed a test of the applicant's eyesight; 
           (4) has passed a department-administered test of the 
        applicant's knowledge of traffic laws; 
           (5) has completed the required application, which must be 
        approved by (i) either parent when both reside in the same 
        household as the minor applicant or, if otherwise, then (ii) the 
        parent or spouse of the parent having custody or, in the event 
        there is no court order for custody, then (iii) the parent or 
        spouse of the parent with whom the minor is living or, if items 
        (i) to (iii) do not apply, then (iv) the guardian having custody 
        of the minor or, in the event a person under the age of 18 has 
        no living father, mother, or guardian, or is married or 
        otherwise legally emancipated, then (v) the applicant's adult 
        spouse, adult close family member, or adult employer; provided, 
        that the approval required by this clause contains a 
        verification of the age of the applicant and the identity of the 
        parent, guardian, adult spouse, adult close family member, or 
        adult employer; and 
           (6) has paid the fee required in section 171.06, 
        subdivision 2. 
           (b) The instruction permit is valid for one year from the 
        date of application and may be renewed upon payment of a fee 
        equal to the fee for issuance of an instruction permit under 
        section 171.06, subdivision 2. 
           Sec. 54.  Minnesota Statutes 2000, section 171.055, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIREMENTS FOR PROVISIONAL LICENSE.] (a) 
        The department may issue a provisional license, which must be 
        distinctive in appearance from a driver's license, to an 
        applicant who: 
           (1) has reached the age of 16 years; 
           (2) during the six months immediately preceding the 
        application for the provisional license has possessed an 
        instruction permit and has incurred (i) no convictions for a 
        violation of section 169A.20, 169A.33, 169A.35, or sections 
        169A.50 to 169A.53, (ii) no convictions for a crash-related 
        moving violation, and (iii) no convictions for a moving 
        violation that is not crash related; 
           (3) has successfully completed a course of driver education 
        in accordance with department rules; 
           (4) completes the required application, which must be 
        approved by (i) either parent when both reside in the same 
        household as the minor applicant or, if otherwise, then (ii) the 
        parent or spouse of the parent having custody or, in the event 
        there is no court order for custody, then (iii) the parent or 
        spouse of the parent with whom the minor is living or, if items 
        (i) to (iii) do not apply, then (iv) the guardian having custody 
        of the minor or, in the event a person under the age of 18 has 
        no living father, mother, or guardian, or is married or 
        otherwise legally emancipated, then (v) the applicant's adult 
        spouse, adult close family member, or adult employer; provided, 
        that the approval required by this clause contains a 
        verification of the age of the applicant and the identity of the 
        parent, guardian, adult spouse, adult close family member, or 
        adult employer; 
           (5) presents certification by the person who approves the 
        application under clause (4) stating that the applicant has 
        driven a motor vehicle accompanied by and under the supervision 
        of a licensed driver at least 21 years of age, for no less than 
        30 hours, at least ten of which were nighttime hours; and 
           (6) pays the fee required in section 171.06, subdivision 2. 
           (b) For purposes of this section, "moving violation" has 
        the meaning given it in section 171.04, subdivision 1. 
           Sec. 55.  Minnesota Statutes 2000, section 171.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORMS OF APPLICATION.] Every application 
        for a Minnesota identification card, for an instruction permit, 
        for a provisional license, or for a driver's license shall must 
        be made upon in a form furnished format approved by the 
        department, and every application shall must be accompanied by 
        the proper fee.  All applications shall be signed in the 
        presence of the person authorized to accept the applications, or 
        the signature on the application may be verified by a notary 
        public.  All first-time applications and change of status 
        applications must be signed in the presence of the person 
        authorized to accept the application, or the signature on the 
        application may be verified by a notary public.  All 
        applications requiring evidence of legal presence in the United 
        States must be signed in the presence of the person authorized 
        to accept the application, or the signature on the application 
        may be verified by a notary public. 
           Sec. 56.  Minnesota Statutes 2000, section 171.06, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CONTENTS OF APPLICATION; OTHER INFORMATION.] (a) 
        An application must: 
           (1) state the full name, date of birth, sex, and residence 
        address of the applicant,; 
           (2) as may be required by the commissioner, contain a 
        description of the applicant in such manner as the commissioner 
        may require, and must state whether or not the applicant has 
        theretofore been licensed as a driver; and, if so, when and by 
        what state or country and whether any such license has ever been 
        suspended or revoked, or whether an application has ever been 
        refused; and, if so, the date of and reason for such suspension, 
        revocation, or refusal, together with such and any other facts 
        pertaining to the applicant, the applicant's driving privileges, 
        and the applicant's ability to operate a motor vehicle with 
        safety as may be required by the commissioner.  An application; 
           (3) for a class C, class B, or class A driver's license 
        also must, state the applicant's social security number.  An 
        application or, for a class D driver's license must, have a 
        space for the applicant's social security number and state that 
        providing the number is optional, or otherwise convey that the 
        applicant is not required to enter the social security number.  
        The application form must; 
           (4) contain a space where the applicant may indicate a 
        desire to make an anatomical gift according to paragraph (b); 
        and 
           (5) contain a notification to the applicant of the 
        availability of a living will/health care directive designation 
        on the license under section 171.07, subdivision 7.  
           (b) If the applicant does not indicate a desire to make an 
        anatomical gift when the application is made, the applicant must 
        be offered a donor document in accordance with section 171.07, 
        subdivision 5.  The application form must contain statements 
        sufficient to comply with the requirements of the Uniform 
        Anatomical Gift Act (1987), sections 525.921 to 525.9224, so 
        that execution of the application or donor document will make 
        the anatomical gift as provided in section 171.07, subdivision 
        5, for those indicating a desire to make an anatomical 
        gift.  The application form must contain a notification to the 
        applicant of the availability of a living will/health care 
        directive designation on the license under section 171.07, 
        subdivision 7.  The application must be in the form prepared by 
        the commissioner.  The application must be accompanied by 
        information describing Minnesota laws regarding anatomical gifts 
        and the need for and benefits of anatomical gifts. 
           (b) (c) The application form must be accompanied also by 
        a pamphlet information containing relevant facts relating to:  
           (1) the effect of alcohol on driving ability; 
           (2) the effect of mixing alcohol with drugs; 
           (3) the laws of Minnesota relating to operation of a motor 
        vehicle while under the influence of alcohol or a controlled 
        substance; and 
           (4) the levels of alcohol-related fatalities and accidents 
        in Minnesota and of arrests for alcohol-related violations. 
           (c) The application form must also be accompanied by a 
        pamphlet describing Minnesota laws regarding anatomical gifts 
        and the need for and benefits of anatomical gifts. 
           Sec. 57.  Minnesota Statutes 2001 Supplement, section 
        171.07, subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSE; CONTENTS.] (a) Upon the payment 
        of the required fee, the department shall issue to every 
        qualifying applicant a license designating the type or class of 
        vehicles the applicant is authorized to drive as applied for.  
        This license must bear a distinguishing number assigned to the 
        licensee, the full name, date of birth, residence address and 
        permanent mailing address if different, a description of the 
        licensee in such a manner as the commissioner deems necessary, 
        and a space upon which the licensee shall write the usual 
        signature and the date of birth of the licensee.  No license is 
        valid until it has been signed by unless it bears the usual 
        signature of the licensee.  Except in the case of an instruction 
        permit, Every license must bear a colored photograph or an 
        electronically produced image of the licensee. 
           (b) Every license issued to an applicant under the age of 
        21 must be of a distinguishing color and plainly marked 
        "Under-21." 
           (c) The department shall use such process or processes in 
        the issuance of licenses issuing a license that 
        prohibits prohibit, as near nearly as possible, the ability to 
        alter or reproduce the licenses a license, or prohibit the 
        ability to superimpose a photograph or electronically produced 
        image on the licenses a license, without ready detection. 
           (d) A license issued to an applicant age 65 or over must be 
        plainly marked "senior" if requested by the applicant. 
           Sec. 58.  Minnesota Statutes 2000, section 171.07, 
        subdivision 3, is amended to read: 
           Subd. 3.  [IDENTIFICATION CARD; FEE.] (a) Upon payment of 
        the required fee, the department shall issue to every qualifying 
        applicant therefor a Minnesota identification card.  The 
        department may not issue a Minnesota identification card to a 
        person who has a driver's license, other than an instruction 
        permit or a limited license.  The card must bear a 
        distinguishing number assigned to the applicant,; a colored 
        photograph or an electronically produced image, of the 
        applicant; the applicant's full name, date of birth, and 
        residence address,; a description of the applicant in the manner 
        as the commissioner deems necessary,; and a space upon which the 
        applicant shall write the usual signature and the date of birth 
        of the applicant with pen and ink. 
           (b) Each identification card issued to an applicant under 
        the age of 21 must be of a distinguishing color and plainly 
        marked "Under-21." 
           (b) (c) Each Minnesota identification card must be plainly 
        marked "Minnesota identification card - not a driver's license." 
           (c) (d) The fee for a Minnesota identification card is 50 
        cents when issued to:  a person who is mentally retarded, as 
        defined in section 252A.02, subdivision 2; a physically disabled 
        person, as defined in section 169.345, subdivision 2; or, a 
        person with mental illness, as described in section 245.462, 
        subdivision 20, paragraph (c). 
           Sec. 59.  Minnesota Statutes 2000, section 171.13, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXAMINATION UPON RENEWAL.] The department shall 
        issue a driver's license shall be issued upon renewal when the 
        applicant has passed an examination consisting of a screening of 
        the applicant's eyesight.  Screening of eyesight required by 
        this subdivision shall does not be construed as constitute the 
        practice of optometry as defined in section 148.56.  The 
        commissioner may adopt rules to administer this subdivision.  
           Sec. 60.  Minnesota Statutes 2000, section 171.165, is 
        amended to read: 
           171.165 [COMMERCIAL DRIVER'S LICENSE, DISQUALIFICATION.] 
           Subdivision 1.  [FIRST VIOLATION.] Subject to section 
        171.166, the commissioner shall disqualify a person from 
        operating commercial motor vehicles for one year upon receiving 
        a record of the first conviction of the person for committing a 
        violation of any of the following in the commission of which 
        offenses while operating a commercial motor vehicle was used: 
           (1) section 169A.20 or 169A.31; 
           (2) section 169.09, subdivision 1 or 2; 
           (3) a felony, other than a felony described in subdivision 
        3, paragraph (a), clause (3) (2), item (ii); or 
           (4) driving with a revoked, suspended, canceled, denied, or 
        disqualified commercial driver's license; 
           (5) causing a fatality through the negligent or criminal 
        operation of a commercial motor vehicle; or 
           (6) an offense committed in another state that would be 
        grounds for disqualification under this subdivision or 
        subdivision 2 if committed in Minnesota. 
           Subd. 2.  [IMPLIED CONSENT REVOCATION.] The commissioner 
        shall disqualify a person from operating commercial motor 
        vehicles for one year from the effective date of a revocation 
        under section 169A.52 or a statute or ordinance from another 
        state in conformity with it, if the person was driving, 
        operating, or in physical control of a commercial motor vehicle 
        at the time of the incident on which the revocation is based. 
           Subd. 3.  [GRAVE OR MULTIPLE OFFENSES.] (a) Subject to 
        section 171.166, the commissioner shall disqualify a person from 
        operating commercial motor vehicles for: 
           (1) not less than three years, for a conviction or 
        revocation set forth in subdivision 1 or 2 committed during the 
        transportation of hazardous materials; 
           (2) not less than ten years life, if the person is 
        convicted for a conviction: 
           (i) of a second or subsequent time of an disqualifying 
        offense set forth in subdivision 1 or 2, a statute of another 
        state or ordinance in conformity with it, or any combination of 
        those offenses, arising from separate incidents; or 
           (3) life, if the person is convicted (ii) under chapter 152 
        of a felony involving the manufacture, sale, or distribution of 
        a controlled substance, or involving the possession of a 
        controlled substance with intent to manufacture, sell, or 
        distribute it, and the person is found to have used a commercial 
        motor vehicle in the commission of the felony. 
           (b) A person whose commercial motor vehicle driving 
        privileges have been disqualified under paragraph (a), clause 
        (2), item (i), may apply for reinstatement after ten years.  A 
        person whose commercial motor vehicle driving privileges have 
        been disqualified under paragraph (a), clause (2), item (ii), 
        may not apply for reinstatement. 
           (c) A person whose commercial motor vehicle driving 
        privileges have been reinstated under paragraph (b) and who 
        subsequently commits a disqualifying offense set forth in 
        subdivision 1 or 2, or any combination of those offenses, may 
        not apply for reinstatement. 
           Subd. 4.  [SERIOUS TRAFFIC VIOLATION.] On receiving a 
        record of conviction and subject to section 171.166, the 
        commissioner shall disqualify a person from operating commercial 
        motor vehicles for 60 days if the person is convicted of two 
        serious traffic violations, or 120 days if convicted of three 
        serious traffic violations.  The violations must involve 
        separate incidents and must have been committed in a commercial 
        motor vehicle within a three-year period.  For purposes of this 
        subdivision, a serious traffic offense violation includes the 
        following: 
           (1) following too closely under section 169.18, subdivision 
        8; 
           (2) erratic lane change under sections 169.18, subdivisions 
        3 and 7; and 169.19, subdivision 4; 
           (3) operating the commercial vehicle at a speed 15 miles 
        per hour or more above the posted speed limit; 
           (4) reckless or careless driving under section 169.13; 
           (5) fleeing a peace officer under section 609.487; and 
           (6) a violation of a moving traffic statute of Minnesota or 
        any state, or an ordinance in conformity with a Minnesota 
        statute, that arose in connection with a fatal accident; 
           (7) operating a commercial motor vehicle without the proper 
        class of commercial driver's license or endorsements for the 
        type of vehicle being operated; and 
           (8) operating a commercial motor vehicle without a 
        commercial driver's license in immediate possession, unless the 
        person provides proof to the court that, on the date of the 
        citation, the person held a valid commercial driver's license of 
        the proper class and with the proper endorsements. 
           Subd. 4a.  [VIOLATION OF OUT-OF-SERVICE ORDER.] (a) The 
        commissioner shall disqualify a person from operating a 
        commercial motor vehicle for not less than: 
           (1) 90 days nor more than one year if the operator is 
        convicted of a first violation of an out-of-service order; 
           (2) one year nor more than five years if, during any 
        ten-year period, the operator is convicted of two violations of 
        out-of-service orders in separate incidents; and 
           (3) three years nor more than five years if, during any 
        ten-year period, the operator is convicted of three or more 
        violations of out-of-service orders in separate incidents. 
           (b) The commissioner shall notify the commissioner of 
        transportation of each disqualification under this subdivision. 
           Subd. 4b.  [RAILROAD GRADE CROSSING VIOLATION.] (a) The 
        commissioner shall disqualify a person from operating a 
        commercial motor vehicle for not less than: 
           (1) 60 days if the person is convicted of a first railroad 
        grade crossing violation; 
           (2) 120 days if, during any three-year period, the person 
        is convicted of two railroad grade crossing violations arising 
        from separate incidents; 
           (3) one year if, during any three-year period, the person 
        is convicted of three or more railroad grade crossing violations 
        arising from separate incidents. 
           (b) For the purposes of the subdivision, "railroad grade 
        crossing violation" means a violation of section 169.26 or 
        169.28, Code of Federal Regulations, title 49, section 392.10, 
        or a statute or ordinance from another state in conformity with 
        those sections, while operating a commercial motor vehicle. 
           Subd. 5.  [RULES.] The commissioner shall adopt rules to 
        administer this section.  The rules must include procedures for 
        issuing class D licenses to persons who have been disqualified 
        from operating commercial motor vehicles but whose drivers' 
        licenses have not otherwise been revoked, suspended, canceled, 
        or denied. 
           Subd. 6.  [EXEMPTIONS.] A disqualification shall not be 
        imposed under this section on a recreational equipment operator, 
        farmer, or firefighter operating a commercial motor vehicle 
        within the scope of section 171.02, subdivision 2, paragraph (b).
           Subd. 7.  [SCOPE.] This section applies to offenses 
        committed, and revocations imposed for incidents occurring, on 
        or after January 1, 1990. 
           Sec. 61.  [INTENT.] 
           Nothing in section 9, subdivision 1a, paragraphs (a) and 
        (c) through (i), and related repeals elsewhere in that section, 
        is intended to increase or decrease the scope or extent of any 
        category of licensing authorized under Minnesota Statutes, 
        section 168.27. 
           Sec. 62.  [EXEMPTION FROM MATCHING REQUIREMENT.] 
           All money received under Public Law Number 107-71, the 
        Aviation and Transportation Security Act, is exempt from the 
        matching requirements of Minnesota Statutes, section 360.305, 
        subdivision 4. 
           Sec. 63.  [BUS SERVICE AUTHORIZED.] 
           Notwithstanding Laws 2001, First Special Session chapter 8, 
        article 1, section 2, subdivision 7, the commissioner may spend 
        up to $400,000 of trunk highway funds in fiscal year 2003 to pay 
        the operating costs of bus service to mitigate the traffic 
        impacts of the construction project involving marked interstate 
        highway 494, the Wakota bridge, and marked trunk highway 61. 
           Sec. 64.  [REPEALER.] 
           Minnesota Statutes 2000, section 171.30, subdivision 3, is 
        repealed. 

                                   ARTICLE 2 
                             MOTOR CARRIER FUEL TAX 
           Section 1.  [LEGISLATIVE FINDINGS AND POLICY.] 
           (a) The legislature of the state of Minnesota finds that, 
        for the benefit of the state, other jurisdictions, and the motor 
        carrier industry, the state should enter into and endorse an 
        international agreement pertaining to the registration and fuel 
        taxation of motor carriers operating in interstate commerce.  
        The purpose of such agreements and compacts are to ensure proper 
        funding of the state's highway infrastructure through the 
        payment and distribution of revenue by and between member 
        jurisdictions and to simplify the registration and taxation 
        process for the motor carriers.  
           (b) With this understanding, the state adopts these core 
        principles to international registration and taxation agreements:
           (1) the concept of a single-base jurisdiction for all motor 
        carriers; 
           (2) the concept that the definition of a taxpayer will be 
        uniform among member jurisdictions; 
           (3) the concept that each member jurisdiction retains its 
        taxing authority under its specific tax-enabling laws; 
           (4) the principle of apportioned registration and fuel 
        taxes; 
           (5) the principle of one registration plate; 
           (6) the principle of reciprocal granting of fees and 
        granting of reciprocity; 
           (7) the discharge of registrant responsibilities; and 
           (8) the operation under apportioned registration and fuel 
        taxes. 
           Sec. 2.  [168D.01] [DEFINITIONS.] 
           Subdivision 1.  [SCOPE.] As used in this chapter, the 
        following terms have the meanings given them in this section. 
           Subd. 2.  [CANCELLATION.] "Cancellation" means the 
        voluntary termination of a license and its provisions. 
           Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of public safety of the state of Minnesota, acting 
        directly or through duly authorized agents. 
           Subd. 4.  [JURISDICTION.] "Jurisdiction" means a state of 
        the United States, the District of Columbia, a province or 
        territory of Canada, and any other member jurisdiction of the 
        International Fuel Tax Agreement (IFTA) compact as approved by 
        Congress in the Intermodal Surface Transportation Efficiency Act 
        (ISTEA). 
           Subd. 5.  [MOTOR CARRIER.] "Motor carrier" means an 
        individual, corporation, partnership, association, trust, or 
        other entity, however organized, operating one or more qualified 
        motor vehicles as a part of its interstate business operations. 
           Subd. 6.  [MOTOR FUEL.] "Motor fuel" means an agent, 
        regardless of its composition or properties, used to propel a 
        qualified motor vehicle. 
           Subd. 7.  [OPERATION.] "Operation" means operation of 
        qualified motor vehicles whether loaded or empty, whether for 
        compensation or not for compensation, and whether owned by or 
        leased to the motor carrier who operates them or causes them to 
        be operated in two or more jurisdictions. 
           Subd. 8.  [QUALIFIED MOTOR VEHICLE.] (a) "Qualified motor 
        vehicle" means a motor vehicle that is used, designed, or 
        maintained to transport persons or property and that: 
           (1) has two axles and a gross vehicle weight or registered 
        gross vehicle weight exceeding 26,000 pounds; 
           (2) has three or more axles regardless of weight; or 
           (3) is used in combination, when the weight of the 
        combination exceeds 26,000 pounds gross vehicle or registered 
        gross vehicle weight.  
           (b) Qualified motor vehicle does not include a recreational 
        vehicle or any vehicle exempt from registration under section 
        168.012, subdivision 1, paragraph (a), clause (1). 
           Subd. 9.  [REVOCATION.] "Revocation" means the withdrawal 
        of a license and privileges by the commissioner of public safety.
           Subd. 10.  [SUSPENSION.] "Suspension" means the temporary 
        removal of privileges granted to the licensee by the 
        commissioner of public safety. 
           Sec. 3.  [168D.02] [FUEL TAX COMPACT.] 
           Subdivision 1.  [AUTHORITY.] (a) The commissioner of public 
        safety may enter into an agreement or arrangement with the duly 
        authorized representative of another jurisdiction or make an 
        independent declaration granting to motor carriers of qualified 
        motor vehicles properly registered or licensed in another member 
        jurisdiction benefits, privileges, and exemptions from paying, 
        wholly or partially, fuel taxes, fees, or other charges imposed 
        for operating the vehicles under the laws of Minnesota.  The 
        agreement, arrangement, or declaration may impose terms and 
        conditions consistent with federal and state laws and 
        regulations. 
           (b) The commissioner of public safety may ratify and 
        effectuate an international fuel tax agreement or other fuel tax 
        agreement in accordance with state and federal authorities.  The 
        commissioner's authority includes collecting fuel taxes due, 
        issuing fuel licenses, issuing refunds, conducting audits, 
        assessing penalties and interest, issuing fuel trip permits, 
        issuing decals, and suspending or denying licensing. 
           (c) Based on these powers, the commissioner and the state 
        of Minnesota have entered into a formal agreement with other 
        states of the United States, the District of Columbia, provinces 
        and territories of Canada, and any other member jurisdiction of 
        the International Fuel Tax Agreement (IFTA) compact as approved 
        by Congress in the Intermodal Surface Transportation Efficiency 
        Act (ISTEA) to assess and collect fuel tax in a uniform and 
        consistent manner across jurisdictions. 
           Subd. 2.  [RECIPROCITY.] (a) As a member of the IFTA 
        compact, the state of Minnesota recognizes and affirms the 
        provisions set forth in that agreement. 
           (b) Under the provisions of this agreement, the state of 
        Minnesota shall provide an open exchange of information between 
        member jurisdictions and the IFTA clearinghouse but reserves the 
        right to stipulate the level of security and privacy of the 
        information in transmission and storage to protect the privacy 
        rights of its citizens according to chapters 13 through 13D. 
           (c) An agreement or arrangement must be in writing and 
        provide that when a qualified motor vehicle properly licensed 
        for fuel in the state of Minnesota is operated on highways of 
        another member jurisdiction, it must receive exemptions, 
        benefits, and privileges of a similar kind or to a similar 
        degree as are extended to a qualified motor vehicle properly 
        licensed for fuel in that member jurisdiction while it is being 
        operated in the state of Minnesota. 
           (d) A declaration must be in writing and must contemplate 
        and provide for mutual benefits, reciprocal privileges, or 
        equitable treatment of the motor carrier of a qualified motor 
        vehicle registered for fuel in Minnesota and the other member 
        jurisdictions.  In the judgment of the commissioner of public 
        safety, an agreement, arrangement, or declaration must be in the 
        best interest of Minnesota and its citizens and must be fair and 
        equitable regarding the benefits that the agreement brings to 
        the economy of Minnesota. 
           Sec. 4.  [168D.03] [COMPLIANCE WITH MINNESOTA LAWS.] 
           Agreements, arrangements, and declarations made under 
        authority of this chapter must contain a provision specifying 
        that no fuel license, or exemption issued or accruing under the 
        license, excuses the motor carrier of a qualified motor vehicle 
        from compliance with Minnesota laws. 
           Sec. 5.  [168D.04] [TAXING AUTHORITY.] 
           Subdivision 1.  [AGREEMENT TERMS.] (a) Under the provisions 
        of an agreement entered into according to section 168D.02, each 
        member shall retain its sovereign authority to determine tax 
        rates and exemptions and to exercise other substantive tax 
        authority.  
           (b) In accordance with federal and state law, the agreement 
        must provide for: 
           (1) determining the base jurisdiction for users; 
           (2) users' records requirements; 
           (3) audit procedures; 
           (4) exchanging information; 
           (5) eligibility of persons for tax licensing; 
           (6) defining qualified motor vehicles; 
           (7) determining if bonding is required; 
           (8) specifying reporting requirements and periods, 
        including defining uniform penalty and interest rates for late 
        reporting; 
           (9) determining methods for collecting and forwarding motor 
        fuel taxes and penalties to another jurisdiction; 
           (10) display of identification indicating compliance with 
        the agreement; and 
           (11) other provisions to facilitate the administration of 
        the agreement. 
           (c) Each jurisdiction shall audit the records of persons 
        based in the jurisdiction to determine if the motor fuel taxes 
        due each jurisdiction are properly reported and paid. 
           Subd. 2.  [FUEL ROAD TAX IMPOSED.] (a) Every motor carrier 
        shall pay a road tax calculated on the amount of motor fuel 
        consumed in the motor carrier's operations on highways within 
        Minnesota.  The tax rate is imposed at the rate and conditions 
        specified in chapter 296A. 
           (b) The amount of motor fuel consumed in the operations of 
        a motor carrier on highways within Minnesota is determined by 
        dividing the miles traveled within Minnesota by the average 
        miles per gallon. 
           (c) The average miles per gallon for a motor carrier's 
        qualified motor vehicles is determined by dividing the total 
        miles traveled by the total motor fuel consumed. 
           Sec. 6.  [168D.05] [MOTOR CARRIER FUEL LICENSE.] 
           (a) A motor carrier registered under section 168.187, 
        operating a qualified motor vehicle upon the highways of 
        Minnesota, and not qualifying for exemption under this chapter, 
        may not operate the vehicle unless and until issued a fuel 
        license under this chapter or until the motor carrier has 
        obtained a temporary fuel permit. 
           (b) A license may be issued to a person qualifying as a 
        motor carrier who applies and pays to the commissioner the 
        license fees required by this chapter. 
           (c) A license is valid for a calendar year unless 
        surrendered by the motor carrier or canceled, suspended, or 
        revoked by the commissioner.  All licenses expire on December 31 
        of each calendar year and may be renewed by applying to the 
        commissioner and paying the licensing fee. 
           (d) The motor carrier is required to make legible copies of 
        the license and one copy must be carried in each qualified motor 
        vehicle while it is being operated in Minnesota and in all 
        member jurisdictions. 
           (e) Each licensee shall acknowledge and agree upon license 
        application to be bound by the obligations and duties of 
        licensed motor carriers under the laws, rules, and regulations 
        adopted by the member jurisdictions to administer the 
        International Fuel Tax Agreement.  Failure to adhere to these 
        obligations and duties may result in cancellation, suspension, 
        or revocation of the license. 
           Sec. 7.  [168D.06] [FUEL LICENSE FEES.] 
           License fees paid to the commissioner under the 
        International Fuel Tax Agreement must be deposited in the 
        highway user tax distribution fund.  The commissioner shall 
        charge an annual fuel license fee of $15, and an annual 
        application filing fee of $13 for quarterly reporting of fuel 
        tax. 
           Sec. 8.  [168D.07] [FUEL DECAL FEE.] 
           The commissioner shall issue a decal or other 
        identification to indicate compliance with the International 
        Fuel Tax Agreement.  The commissioner shall establish a charge 
        to cover the cost of issuing the decal or other identification 
        according to section 16A.1285, subdivision 4a.  Decal or other 
        identification charges paid to the commissioner under this 
        subdivision must be deposited in the highway user tax 
        distribution fund. 
           Sec. 9.  [168D.08] [MOTOR CARRIER FUEL TAX RETURNS.] 
           Every motor carrier subject to the fuel tax shall, on or 
        before the last day of April, July, October, and January, file 
        with the commissioner, in the format and manner prescribed, tax 
        returns of operations during the previous three months. 
           Sec. 10.  [168D.09] [CREDIT OR REFUND.] 
           Under this section, the commissioner shall allow a credit 
        or refund to a motor carrier for taxes paid to any member 
        jurisdiction that imposes a tax upon motor fuel purchased or 
        obtained in Minnesota and member jurisdictions and used on the 
        highways of Minnesota and other member jurisdictions.  Every 
        motor carrier claiming a refund under this section shall file a 
        claim in the format and manner prescribed by the commissioner or 
        take the credit on a subsequent tax return. 
           Sec. 11.  [168D.10] [MOTOR CARRIER RECORDS.] 
           Subdivision 1.  [MAINTENANCE.] Every motor carrier shall 
        maintain records to substantiate information reported on the 
        required tax returns.  The records must be kept in a format 
        prescribed by the commissioner. 
           Subd. 2.  [PRESERVATION.] Records must be preserved for 
        four years from the tax return due date or filing date, 
        whichever is later.  Preservation of the records must be in a 
        manner that ensures their security, integrity, and availability 
        for inspection by the commissioner or a representative of a 
        member jurisdiction. 
           Subd. 3.  [DESTRUCTION.] Destruction of records may not be 
        completed until the statutory period is met or upon written 
        consent from the commissioner.  A request for early destruction 
        of records must be made in writing to the commissioner 
        identifying the necessity and reasons for the request. 
           Sec. 12.  [168D.11] [AUDITING AND REPORTING.] 
           Subdivision 1.  [AUTHORITY AND OBLIGATION.] The 
        commissioner has the right and obligation to audit the records 
        of persons based in Minnesota to determine if the motor fuel 
        taxes due each jurisdiction are properly reported and paid, with 
        authority to assess proper tax liability with applicable penalty 
        and interest. 
           Subd. 2.  [REPORTING TO OTHER JURISDICTIONS.] Minnesota, 
        along with all other member jurisdictions, shall forward the 
        findings of any fuel tax audits performed to each jurisdiction 
        in which the person has taxable use of motor fuels.  The 
        commissioner may forward to officers of another member 
        jurisdiction any information in the commissioner's possession 
        relating to the manufacture, receipt, sale, use, transportation, 
        or shipment of motor fuels by any person.  The commissioner may 
        disclose to officers of another member jurisdiction the location 
        of offices, motor vehicles, and other real and personal property 
        of users of motor fuels. 
           Subd. 3.  [COOPERATIVE AUDIT.] (a) The commissioner of 
        public safety may make arrangements with, and may enter into 
        agreements with, the appropriate authorities of other Minnesota 
        state agencies and other member jurisdictions having statutes 
        similar to this act for the cooperative audit of motor carriers' 
        reports and returns. 
           (b) In performing a cooperative audit, in whole or in part, 
        the officers and employees of the other Minnesota state agencies 
        or member jurisdictions are considered authorized agents of 
        Minnesota for audit purposes, and their audits have the same 
        force and effect as audits conducted by Minnesota auditors. 
           Sec. 13.  [168D.12] [MOTOR CARRIER TEMPORARY FUEL PERMIT.] 
           A motor carrier may obtain a trip permit that authorizes an 
        unlicensed motor carrier to operate a qualified motor vehicle in 
        Minnesota for five consecutive days beginning and ending on the 
        dates specified on the face of the permit.  The fee for the 
        permit is $25.  The permit must be issued in lieu of a license 
        if in the course of operations a motor carrier operates on 
        Minnesota highways. 
           Sec. 14.  [168D.13] [ACTION TO AVOID OR EVADE FUEL TAX.] 
           Subdivision 1.  [DETERMINATION AND ASSESSMENT.] If the 
        commissioner ascertains that a motor carrier acts to obstruct or 
        make ineffectual proceedings to assess or collect the road taxes 
        due, the commissioner may immediately make an assessment of tax 
        estimated to be due, whether or not any report is then due by 
        law. 
           Subd. 2.  [ASSESSMENT NOTICE AND COLLECTION; 
        IMPOUNDMENT.] (a) The commissioner may then proceed under this 
        assessment to collect the tax, or compel security for the taxes 
        owing, and shall give notice of the commissioner's finding under 
        subdivision 1 to the motor carrier, together with a demand for 
        an immediate payment of the tax.  
           (b) The commissioner is also authorized to impound 
        qualified motor vehicles of motor carriers in violation of this 
        subdivision.  The vehicle must be released either upon paying 
        all taxes, penalties, and interest that may be due or depositing 
        a bond or security to assure the payment of taxes, penalties, 
        and interest. 
           Sec. 15.  [168D.14] [ENFORCEMENT POWERS.] 
           Subdivision 1.  [COMMISSIONER OF PUBLIC SAFETY.] The 
        commissioner is authorized and directed to enforce this 
        chapter.  In addition, the commissioner of public safety is 
        authorized and directed to use the Minnesota state patrol to 
        assist in the enforcement of this chapter.  
           Subd. 2.  [COMMISSIONER OF TRANSPORTATION.] The 
        commissioner of transportation is authorized and directed to 
        enforce sections 168D.05 and 168D.12 as provided in section 
        221.221. 
           Subd. 3.  [STATE PATROL.] The officers of the Minnesota 
        state patrol, in addition to all other powers granted to them by 
        Minnesota Statutes, have the power of making arrests, service of 
        process, and appearing in court in all matters and things 
        relating to this chapter and its administration and enforcement. 
           Sec. 16.  [168D.15] [DELINQUENT FILING OR PAYMENT.] 
           If a motor carrier licensed under this section is 
        delinquent in either filing or paying the International Fuel Tax 
        Agreement (IFTA) report or billing for more than 30 days, or 
        paying the international registration plan billing under section 
        168.187 for more than 30 days, the motor carrier, after ten 
        days' written notice, is subject to suspension of the 
        apportioned license plates and the IFTA license. 
           Sec. 17.  [168D.16] [TRANSFERRING FUNDS TO PAY DELINQUENT 
        FEE.] 
           If a motor carrier licensed under this chapter is 
        delinquent in either filing or paying the International Fuel Tax 
        Agreement (IFTA) report or billing for more than 30 days, or 
        paying the international registration plan billing under section 
        168.187 for more than 30 days, the commissioner shall authorize 
        any credit in either the IFTA account or the international 
        registration plan account to be used to offset the liability in 
        either the IFTA account or the international registration plan 
        account. 
           Sec. 18.  [168D.17] [EXEMPTIONS.] 
           This chapter does not apply to recreational equipment as 
        defined in section 168.011. 
           Sec. 19.  [168D.18] [RULES.] 
           The commissioner may adopt rules relating to the 
        administration and enforcement of this chapter. 
           Sec. 20.  Minnesota Statutes 2000, section 168.187, 
        subdivision 26, is amended to read: 
           Subd. 26.  [DELINQUENT FILING OR PAYMENT.] If a fleet owner 
        or owner-operator licensed under this section and section 
        296A.28 chapter 168D is delinquent in either filing or paying 
        the international fuel tax agreement reports for more than 30 
        days, or paying the international registration plan billing for 
        more than 30 days, the fleet owner or owner-operator, after ten 
        days' written notice, is subject to suspension of the 
        apportioned license plates and the international fuel tax 
        agreement license. 
           Sec. 21.  Minnesota Statutes 2001 Supplement, section 
        221.221, subdivision 2, is amended to read: 
           Subd. 2.  [ENFORCEMENT POWERS.] Transportation program 
        specialists and hazardous material program specialists of the 
        department, for the purpose of enforcing the provisions of this 
        chapter, sections 169.781 to 169.783 relating to commercial 
        vehicle inspections, and section 296A.27, subdivisions 6 and 12, 
        sections 168D.05 and 168D.12 relating to motor carrier licenses 
        and trip permits, and the applicable rules, orders, or 
        directives of the commissioner of transportation and the 
        commissioner of revenue, issued under this chapter and 
        chapter 168D or 296A, but for no other purpose, have the powers 
        conferred by law upon police officers.  The powers include the 
        authority to conduct inspections at designated highway weigh 
        stations or under other appropriate circumstances. 
           Sec. 22.  Minnesota Statutes 2000, section 296A.23, 
        subdivision 7, is amended to read: 
           Subd. 7.  [FAILURE TO OBTAIN PROPER PERMIT.] A minimum fine 
        of $200 shall be imposed on a person who fails to obtain a 
        license or trip permit required under section 296A.27, 
        subdivisions 6 and 12 168D.05 or 168D.12. 
           Sec. 23.  [REPEALER.] 
           Minnesota Statutes 2000, sections 296A.27 and 296A.28, are 
        repealed. 

                                   ARTICLE 3 
                         COMMERCIAL VEHICLE ENFORCEMENT 
           Section 1.  Minnesota Statutes 2000, section 168.011, 
        subdivision 17, is amended to read: 
           Subd. 17.  [FARM TRUCK.] (a) "Farm truck" means all single 
        unit trucks, truck-tractors, tractors, semitrailers, and 
        trailers used by the owner thereof to transport agricultural, 
        horticultural, dairy, and other farm products, including 
        livestock, produced or finished by the owner of the truck, and 
        any other personal property owned by the farmer to whom the 
        license for the truck is issued, from the farm to market, and to 
        transport property and supplies to the farm of the owner.  
        Trucks, truck-tractors, tractors, semitrailers, and trailers 
        registered as "farm trucks" may be used by the owner thereof to 
        occasionally transport unprocessed and raw farm products, not 
        produced by the owner of the truck, from the place of production 
        to market when the transportation constitutes the first haul of 
        the products, and may be used by the owner thereof, either 
        farmer or logger who harvests and hauls forest products only, to 
        transport logs, pulpwood, lumber, chips, railroad ties and other 
        raw and unfinished forest products from the place of production 
        to an intermediate or final assembly point or transfer yard or 
        railhead when the transportation constitutes, which 
        transportation may be continued by another farm truck to a place 
        for final processing or manufacture located within 200 miles of 
        the place of production and all of which is deemed to constitute 
        the first haul thereof, of unfinished wood products; provided 
        that the owner and operator of the vehicle transporting planed 
        lumber shall have in immediate possession a statement signed by 
        the producer of the lumber designating the governmental 
        subdivision, section, and township where the lumber was produced 
        and that this haul, indicating the date, is the first haul 
        thereof.  The licensed vehicles may also be used by the owner 
        thereof to transport, to and from timber-harvesting areas, 
        equipment and appurtenances incidental to timber harvesting, and 
        gravel and other road-building materials for timber haul roads. 
           (b) "Farm trucks" shall also include only single unit 
        trucks, which that, because of their construction, cannot be 
        used for any other purpose and are used exclusively to transport 
        milk and cream en route from a farm to an assembly point or 
        place for final manufacture, and for transporting milk and cream 
        from an assembly point to a place for final processing or 
        manufacture.  This section shall not be construed to mean that 
        the owner or operator of the truck cannot carry on usual 
        accommodation services for patrons on regular return trips, such 
        as butter, cream, cheese, and other dairy supplies. 
           Sec. 2.  Minnesota Statutes 2000, section 168.013, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION; CANCELLATION; EXCESSIVE GROSS 
        WEIGHT FORBIDDEN.] (a) The applicant for all licenses based on 
        gross weight shall state 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. 
           (b) The gross weight of no a motor vehicle, trailer, or 
        semitrailer shall not exceed the gross weight upon which the 
        license tax has been paid by more than four percent or 1,000 
        pounds, whichever is greater; provided that, a vehicle 
        transporting unfinished forest products in accordance with 
        paragraph (d)(3) shall not exceed its gross vehicle weight upon 
        which the license tax has been paid, or gross axle weight on any 
        axle, by more than five percent and, notwithstanding other law 
        to the contrary, is not subject to any fee, fine, or other 
        assessment or penalty for exceeding a gross vehicle or axle 
        weight by up to five percent. 
           (c) 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. 
           (d) 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, the 
        allowance set forth in paragraph (b) 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, the allowance set forth in 
        paragraph (b) 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 
        (i) 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 (ii) the first, 
        continuous or noncontinuous transportation of unfinished forest 
        products from the place of production to the place of first 
        unloading final processing or manufacture located within 200 
        miles of the place of production. 
           (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. 3.  Minnesota Statutes 2000, section 169.771, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INSPECTION BY STATE TROOPER.] (a) The 
        commissioner of public safety is directed to accelerate spot 
        check inspections for unsafe motor vehicles and motor vehicle 
        equipment.  Such inspections shall be conducted by the personnel 
        of the state patrol who shall give the operator of a commercial 
        motor vehicle a signed and dated document as evidence of the 
        inspection.  
           (b) However, personnel of the state patrol may not conduct 
        another spot inspection of a commercial motor vehicle if (1) the 
        operator of the vehicle can show evidence of an inspection, 
        which is free of critical defects, conducted in Minnesota 
        according to this section or section 169.781 within the previous 
        90 days and (2) a state trooper does not have probable cause to 
        believe the vehicle or its equipment is unsafe or that the 
        operator has engaged in illegal activity.  In addition, if the 
        operator shows the state trooper evidence that the commercial 
        motor vehicle has been inspected within the previous 90 days, 
        but the officer has probable cause to believe the vehicle or its 
        equipment is unsafe or to suspect illegal activity, then the 
        vehicle may be inspected to confirm the existence or absence of 
        an unsafe condition or of the suspected illegal activity.  
           Sec. 4.  Minnesota Statutes 2000, section 169.771, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RULES.] The commissioner of public safety may 
        establish such reasonable rules as are necessary to carry out 
        the provisions of this section, but all spot check inspections 
        shall be held in compliance with subdivision 2 and in such a 
        manner that the motor vehicle operators, either private or 
        commercial, shall not be unnecessarily inconvenienced either by 
        extended detours, unnecessary delays, or any other unreasonable 
        cause.  
           Sec. 5.  Minnesota Statutes 2000, section 169.85, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DRIVER TO STOP FOR WEIGHING.] (a) The 
        driver of a vehicle which that has been lawfully stopped may be 
        required by an officer to submit the vehicle and load to a 
        weighing by means of portable or stationary scales, and.  
           (b) In addition, the officer may require that the vehicle 
        be driven to the nearest available scales, but only if: 
           (1) 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; and 
           (2) if the vehicle is a commercial motor vehicle, no more 
        than two other commercial motor vehicles are waiting to be 
        inspected at the scale.  
           (c) Official traffic control devices as authorized by 
        section 169.06 may be used to direct the driver to the nearest 
        scale.  
           (d) 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 shall 
        proceed to the scale site and submit the vehicle to weighing and 
        inspection. 
           Sec. 6.  Minnesota Statutes 2000, section 169.85, 
        subdivision 2, is amended to read: 
           Subd. 2.  [UNLOADING.] (a) 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 either section 168.013, subdivision 3, 
        paragraph (b), or 169.825, whichever is the lesser violation, if 
        any.  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.  
           (b) Except as provided in paragraph (c), a driver may be 
        required to unload a vehicle only if the weighing officer 
        determines that (a) (1) 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) (2) 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) (3) 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. 
           (c) If the gross weight of the vehicle does not exceed the 
        vehicle's registered gross weight plus the weight allowance set 
        forth in section 168.013, subdivision 3, paragraph (b), then the 
        driver is not required to unload under paragraph (b).  
           Sec. 7.  Minnesota Statutes 2000, section 169.851, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FIRST HAUL.] "First haul" means the first, 
        continuous transportation 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 has the meaning 
        given it in section 168.013, subdivision 3, paragraph (d)(3).  
           Sec. 8.  Minnesota Statutes 2000, section 169.86, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FEE; PROCEEDS TO TRUNK HIGHWAY FUND.] The 
        commissioner, with respect to highways under the commissioner's 
        jurisdiction, may charge a fee for each permit issued.  All such 
        fees for permits issued by the commissioner of transportation 
        shall be deposited in the state treasury and credited to the 
        trunk highway fund.  Except for those annual permits for which 
        the permit fees are specified elsewhere in this chapter, the 
        fees shall be: 
           (a) $15 for each single trip permit. 
           (b) $36 for each job permit.  A job permit may be issued 
        for like loads carried on a specific route for a period not to 
        exceed two months.  "Like loads" means loads of the same 
        product, weight, and dimension. 
           (c) $60 for an annual permit to be issued for a period not 
        to exceed 12 consecutive months.  Annual permits may be issued 
        for: 
           (1) motor vehicles used to alleviate a temporary crisis 
        adversely affecting the safety or well-being of the public; 
           (2) motor vehicles which travel on interstate highways and 
        carry loads authorized under subdivision 1a; 
           (3) motor vehicles operating with gross weights authorized 
        under section 169.825, subdivision 11, paragraph (a), clause 
        (3); 
           (4) special pulpwood vehicles described in section 169.863; 
        and 
           (5) motor vehicles bearing snowplow blades not exceeding 
        ten feet in width. 
           (d) $120 for an oversize annual permit to be issued for a 
        period not to exceed 12 consecutive months.  Annual permits may 
        be issued for:  
           (1) mobile cranes; 
           (2) construction equipment, machinery, and supplies; 
           (3) manufactured homes; 
           (4) implements of husbandry when the movement is not made 
        according to the provisions of paragraph (i); 
           (5) double-deck buses; 
           (6) commercial boat hauling.  
           (e) For vehicles which have axle weights exceeding the 
        weight limitations of section 169.825, an additional cost added 
        to the fees listed above.  However, this paragraph applies to 
        any vehicle described in section 168.013, subdivision 3, 
        paragraph (b), but only when the vehicle exceeds its gross 
        weight allowance set forth in that paragraph, and then the 
        additional cost is for all weight, including the allowance 
        weight, in excess of the permitted maximum axle weight.  The 
        additional cost is equal to the product of the distance traveled 
        times the sum of the overweight axle group cost factors shown in 
        the following chart:  
                       Overweight Axle Group Cost Factors 
        Weight (pounds)         Cost Per Mile For Each Group Of:
        exceeding       Two consec-     Three consec-   Four consec-
        weight          utive axles     utive axles     utive axles
        limitations     spaced within   spaced within   spaced within
        on axles        8 feet or less  9 feet or less  14 feet or less 
             0-2,000    .12             .05             .04
         2,001-4,000    .14             .06             .05
         4,001-6,000    .18             .07             .06
         6,001-8,000    .21             .09             .07
         8,001-10,000   .26             .10             .08
        10,001-12,000   .30             .12             .09
        12,001-14,000   Not permitted   .14             .11
        14,001-16,000   Not permitted   .17             .12
        16,001-18,000   Not permitted   .19             .15
        18,001-20,000   Not permitted   Not permitted   .16
        20,001-22,000   Not permitted   Not permitted   .20
        The amounts added are rounded to the nearest cent for each axle 
        or axle group.  The additional cost does not apply to paragraph 
        (c), clauses (1) and (3).  
        For a vehicle found to exceed the appropriate maximum permitted 
        weight, a cost-per-mile fee of 22 cents per ton, or fraction of 
        a ton, over the permitted maximum weight is imposed in addition 
        to the normal permit fee.  Miles must be calculated based on the 
        distance already traveled in the state plus the distance from 
        the point of detection to a transportation loading site or 
        unloading site within the state or to the point of exit from the 
        state. 
           (f) As an alternative to paragraph (e), an annual permit 
        may be issued for overweight, or oversize and overweight, 
        construction equipment, machinery, and supplies.  The fees for 
        the permit are as follows:  
        Gross Weight (pounds) of Vehicle          Annual Permit Fee
             90,000 or less                             $200
             90,001 - 100,000                           $300
            100,001 - 110,000                           $400
            110,001 - 120,000                           $500
            120,001 - 130,000                           $600
            130,001 - 140,000                           $700
            140,001 - 145,000                           $800
        If the gross weight of the vehicle is more than 145,000 pounds 
        the permit fee is determined under paragraph (e). 
           (g) For vehicles which exceed the width limitations set 
        forth in section 169.80 by more than 72 inches, an additional 
        cost equal to $120 added to the amount in paragraph (a) when the 
        permit is issued while seasonal load restrictions pursuant to 
        section 169.87 are in effect. 
           (h) $85 for an annual permit to be issued for a period not 
        to exceed 12 months, for refuse compactor vehicles that carry a 
        gross weight of not more than:  22,000 pounds on a single rear 
        axle; 38,000 pounds on a tandem rear axle; or, subject to 
        section 169.825, subdivision 14, 46,000 pounds on a tridem rear 
        axle.  A permit issued for up to 46,000 pounds on a tridem rear 
        axle must limit the gross vehicle weight to not more than 62,000 
        pounds. 
           (i) For vehicles exclusively transporting implements of 
        husbandry, an annual permit fee of $24.  A vehicle operated 
        under a permit authorized by this paragraph may be moved at the 
        discretion of the permit holder without prior route approval by 
        the commissioner if: 
           (1) the total width of the transporting vehicle, including 
        load, does not exceed 14 feet; 
           (2) the vehicle is operated only between sunrise and 30 
        minutes after sunset, and is not operated at any time after 
        12:00 noon on Sundays or holidays; 
           (3) the vehicle is not operated when visibility is impaired 
        by weather, fog, or other conditions that render persons and 
        other vehicles not clearly visible at 500 feet; 
           (4) the vehicle displays at the front and rear of the load 
        or vehicle a pair of flashing amber lights, as provided in 
        section 169.59, subdivision 4, whenever the overall width of the 
        vehicle exceeds 126 inches; and 
           (5) the vehicle is not operated on a trunk highway with a 
        surfaced roadway width of less than 24 feet unless such 
        operation is authorized by the permit. 
        A permit under this paragraph authorizes movements of the 
        permitted vehicle on an interstate highway, and movements of 75 
        miles or more on other highways. 
           Sec. 9.  [NORTHERN ZONE LOAD RESTRICTION STUDY.] 
           The commissioner of transportation shall conduct a study of 
        load restrictions and seasonal load increases in the northern 
        zone of Minnesota and make recommendations regarding the 
        establishment of one or more new zones given the varying climate 
        in the northern area of the state.  The commissioner shall 
        report findings back to the committees of the senate and house 
        of representatives with jurisdiction over transportation policy 
        by December 15, 2002. 
           Sec. 10.  [EFFECTIVE DATE.] 
           Sections 1 to 9 are effective the day following final 
        enactment. 
           Presented to the governor May 14, 2002 
           Signed by the governor May 17, 2002, 10:36 a.m.