Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

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

                              CHAPTER 19-H.F.No. 5 
                  An act relating to appropriations; appropriating money 
                  for transportation, public safety, and other purposes; 
                  authorizing issuance of state bonds; modifying 
                  provisions relating to contract awards, land 
                  appraisal, archaeological or historic sites, 
                  high-occupancy vehicle lanes, highways and highway 
                  rest areas, town roads and easements, county highways 
                  and cartways, streets, other transportation corridors, 
                  major transportation projects commission, 
                  responsibilities of the department of transportation, 
                  transit, forecasts of highway-related revenues and 
                  expenditures, motor carriers, a land exchange, and 
                  other transportation-related activities; providing for 
                  fees, surcharges, funds and accounts, transfers, 
                  allocations, and expenditures; modifying provisions 
                  regulating special mobile equipment, special vehicle 
                  license plates, speed limits and other traffic 
                  regulations, vehicle weight limits and other vehicle 
                  regulations, vehicle insurance requirements, small 
                  school buses, drivers' licenses, capitol complex 
                  towing policy, public safety officer benefit funds, 
                  liquor, and other activities related to public safety; 
                  authorizing administrative powers, penalties, and 
                  remedies for public safety purposes; providing for 
                  petroleum inspection cost recovery; repealing certain 
                  rules governing design standards of driveways next to 
                  highways, motor carriers, aeronautics, and the right 
                  of first refusal to certain railroad land; requiring 
                  studies and reports; making technical and clarifying 
                  changes; amending Minnesota Statutes 2002, sections 
                  13.44, subdivision 3; 16A.88, subdivision 1; 117.232, 
                  subdivision 1; 138.40, subdivisions 2, 3; 161.08; 
                  161.20, subdivision 3; 162.02, subdivisions 1, 2, 4; 
                  162.09, subdivision 1; 163.07, subdivision 2; 163.11, 
                  by adding subdivisions; 164.12; 168.011, subdivision 
                  22; 168.013, subdivision 3; 168.12, subdivisions 2e, 
                  5; 168.54, subdivision 4; 168A.29, subdivision 1; 
                  169.14, subdivision 5a; 169.448, subdivision 1; 
                  169.791, subdivision 1; 169.796, by adding a 
                  subdivision; 169.797, subdivision 4a; 169.798, 
                  subdivision 1, by adding a subdivision; 169.826, 
                  subdivision 1, by adding a subdivision; 169.85, 
                  subdivision 2; 169.86, subdivision 5; 171.02, 
                  subdivision 2a; 171.20, subdivision 4; 171.29, 
                  subdivision 2; 174.03, by adding a subdivision; 
                  174.24, subdivisions 1, 3b, 5; 174.55, subdivision 2; 
                  174.64, subdivision 4; 239.101, by adding a 
                  subdivision; 275.71, subdivision 5; 297B.09, 
                  subdivision 1; 299A.465, subdivision 4; 299E.01, by 
                  adding a subdivision; 299E.03, subdivision 3; 
                  340A.403, by adding a subdivision; 340A.414, by adding 
                  a subdivision; 340A.504, by adding a subdivision; Laws 
                  1999, chapter 238, article 1, section 2, subdivision 
                  2; Laws 2000, chapter 433, section 4; Laws 2001, 
                  chapter 97, section 5; Laws 2001, First Special 
                  Session chapter 8, article 1, section 2, subdivision 
                  2; 2003 H.F. No. 719, section 30, if enacted; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapters 117; 160; 161; 168; 299A; 331A; 414; 
                  repealing Minnesota Statutes 2002, sections 162.09, 
                  subdivision 5; 169.794; 169.799; 174.025; 174.031; 
                  174.242; 221.165; 221.54; 221.55; Minnesota Rules, 
                  parts 7403.1300; 7413.0400; 7413.0500; 7800.0100, 
                  subparts 1, 3, 5; 7800.0500; 7800.0700; 7800.1400; 
                  7800.1500; 7800.1600; 7800.1700; 7800.3100; 7800.3900; 
                  7800.4810; 7805.0800; 8800.0100, subparts 7, 36; 
                  8800.1200, subpart 3; 8800.3500; 8800.3700; 8800.4000; 
                  8810.4200; 8810.4500; 8810.4600; 8810.4700; 8810.4800; 
                  8810.4900; 8810.5000; 8810.5100; 8810.5500; 8810.9920; 
                  8810.9921; 8850.6900, subparts 4, 6, 11, 12, 17; 
                  8850.7000; 8850.7025; 8850.7040; 8850.7100; 8850.7900; 
                  8850.8200; 8850.8900; 8850.9000; 8850.9050, subparts 
                  1, 2; 8900.0100; 8900.0200; 8900.0300; 8900.0400; 
                  8900.0500; 8900.0600; 8900.0700; 8900.0800; 8900.0900; 
                  8900.1000; 8900.1100; 8910.1000; 8910.2000; 8910.2100; 
                  8910.3000; 8910.3100. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                                 APPROPRIATIONS 
                       TRANSPORTATION AND OTHER AGENCIES 
        Section 1.  [TRANSPORTATION AND OTHER AGENCIES APPROPRIATIONS.] 
           The sums shown in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified in this article, to 
        be available for the fiscal years indicated for each purpose.  
        The figures "2004" and "2005," where used in this article, mean 
        that the appropriations listed under them are available for the 
        year ending June 30, 2004, or June 30, 2005, respectively.  If 
        the figures are not used, the appropriations are available for 
        the year ending June 30, 2004, or June 30, 2005, respectively.  
        The term "first year" means the year ending June 30, 2004, and 
        the term "second year" means the year ending June 30, 2005. 
                                SUMMARY BY FUND
                                  2004          2005           TOTAL
        General            $   80,036,000 $   81,142,000 $  161,178,000
        Airports               19,458,000     19,458,000     38,916,000
        C.S.A.H.              426,020,000    433,631,000    859,651,000
        M.S.A.S.              112,290,000    114,661,000    226,951,000
        Special Revenue         1,144,000      1,144,000      2,288,000
        Highway User           12,336,000     12,336,000     24,672,000
        Trunk Highway       1,205,907,000  1,272,051,000  2,477,958,000
        Petroleum Tank Release
        Cleanup Fund              527,000        -0-            527,000
        TOTAL              $1,857,191,000 $1,934,423,000 $3,791,614,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2004         2005 
        Sec. 2.  TRANSPORTATION
        Subdivision 1.  Total 
        Appropriation                     $1,681,512,000 $1,757,479,000
        The appropriations in this section are 
        from the trunk highway fund, except 
        when another fund is named. 
                      Summary by Fund
                                 2004          2005  
        General              16,220,000    16,221,000
        Airports             19,408,000    19,408,000
        C.S.A.H.            426,020,000   433,631,000
        M.S.A.S.            112,290,000   114,661,000
        Trunk Highway     1,107,574,000 1,173,558,000
        The amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        Subd. 2.  Multimodal Systems          41,548,000     41,549,000 
                      Summary by Fund
        Airports             19,383,000    19,383,000
        General              16,155,000    16,156,000
        Trunk Highway         6,010,000     6,010,000
        The amounts that may be spent from this 
        appropriation for each activity are as 
        follows: 
        (a) Aeronautics  
            20,395,000     20,395,000 
                      Summary by Fund
        Airports             19,383,000    19,383,000
        Trunk Highway         1,012,000     1,012,000
        Except as otherwise provided, the 
        appropriations in this subdivision are 
        from the state airports fund. 
        (1) Airport Development 
        and Assistance 
            14,298,000     14,298,000 
        These appropriations must be spent 
        according to Minnesota Statutes, 
        section 360.305, subdivision 4. 
        Notwithstanding Minnesota Statutes, 
        section 16A.28, subdivision 6, funds 
        are available for five years after 
        appropriation. 
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available for it. 
        Of this appropriation $750,000 each 
        year is for the long-range radar 
        facility in Alexandria.  This 
        appropriation is contingent on a 
        partnership with the federal aviation 
        administration for this project. 
        $100,000 in each fiscal year must be 
        used for hangar construction for the 
        civil air patrol at the South St. Paul 
        airport. 
        (2) Aviation Support and Services 
          6,097,000      6,097,000
                      Summary by Fund
        Airports              5,085,000     5,085,000
        Trunk Highway         1,012,000     1,012,000
        $65,000 the first year and $65,000 the 
        second year are for the civil air 
        patrol. 
        (b) Transit                 
            15,957,000     15,958,000 
                      Summary by Fund
        General              15,809,000    15,810,000
        Trunk Highway           148,000       148,000
        The general fund budget base for this 
        activity is $15,810,000 in each year of 
        the 2006-2007 biennium. 
        The commissioner shall provide funding 
        up to $350,000 for the operation of the 
        Northstar commuter coach from October 
        1, 2003, to September 30, 2004, using 
        accumulated fare revenue, if a local 
        government unit or the Northstar 
        Corridor Development Authority: 
        (1) agrees to operate the service 
        beginning October 1, 2003; and 
        (2) provides the local match for 
        federal funding for the service.  
        (c) Freight       
             1,569,000      1,569,000 
                      Summary by Fund
        General                 220,000       220,000
        Trunk Highway         1,349,000     1,349,000
        Notwithstanding Minnesota Statutes, 
        section 222.49, after July 1, 2003, and 
        before June 30, 2004, the commissioner 
        of finance shall transfer $3,200,000 
        from the rail service improvement 
        account in the special revenue fund to 
        the debt service fund. 
        Notwithstanding Minnesota Statutes, 
        section 222.49, after July 1, 2004, and 
        before June 30, 2005, the commissioner 
        of finance shall transfer $3,200,000 
        from the rail service improvement 
        account in the special revenue fund to 
        the debt service fund.  
        (d) Commercial Vehicles 
             3,627,000      3,627,000 
                      Summary by Fund
        General                 126,000       126,000
        Trunk Highway         3,501,000     3,501,000
        Subd. 3.  State Roads              1,045,224,000  1,115,658,000 
                      Summary by Fund
        General                   9,000         9,000
        Trunk Highway     1,045,215,000 1,115,649,000
        The amounts that may be spent from this 
        appropriation for each activity are as 
        follows: 
        (a) Infrastructure Investment and Planning
           836,593,000    907,027,000 
        $266,000 the first year and $266,000 
        the second year are available for 
        grants to metropolitan planning 
        organizations outside the seven-county 
        metropolitan area. 
        $75,000 the first year and $75,000 the 
        second year are for a transportation 
        research contingent account to finance 
        research projects that are reimbursable 
        from the federal government or from 
        other sources.  If the appropriation 
        for either year is insufficient, the 
        appropriation for the other year is 
        available for it. 
        $600,000 the first year and $600,000 
        the second year are available for 
        grants for transportation studies 
        outside the metropolitan area to 
        identify critical concerns, problems, 
        and issues.  These grants are available 
        (1) to regional development 
        commissions, and (2) in regions where 
        no regional development commission is 
        functioning, to joint powers boards 
        established under agreement of two or 
        more political subdivisions in the 
        region to exercise the planning 
        functions of a regional development 
        commission, and (3) in regions where no 
        regional development commission or 
        joint powers board is functioning, to 
        the department's district office for 
        that region. 
        (1) State Road Construction  
           636,957,000    685,450,000
        It is estimated that these 
        appropriations will be funded as 
        follows: 
        Federal Highway Aid         
           325,000,000    375,000,000 
        Highway User Taxes           
           311,957,000    310,450,000
        The commissioner of transportation 
        shall notify the chair of the 
        transportation budget division of the 
        senate and the chair of the 
        transportation finance committee of the 
        house of representatives of any 
        significant events that should cause 
        these estimates to change. 
        This appropriation is for the actual 
        construction, reconstruction, and 
        improvement of trunk highways including 
        consultant usage to support these 
        activities.  This includes the cost of 
        actual payment to landowners for lands 
        acquired for highway rights-of-way, 
        payment to lessees, interest subsidies, 
        and relocation expenses. 
        The commissioner may transfer up to 
        $15,000,000 each year to the 
        transportation revolving loan fund. 
        $330,000 the first year is for 
        operating costs of bus service to 
        mitigate traffic impacts of the 
        construction project involving I-494, 
        the Wakota bridge, and trunk highway 61.
        The commissioner may receive money 
        covering other shares of the cost of 
        partnership projects.  These receipts 
        are appropriated to the commissioner 
        for these projects. 
        (2) Highway Debt Service     
            40,149,000     60,583,000 
        $33,640,000 the first year and 
        $54,012,000 the second year are for 
        transfer to the state bond fund.  If 
        this appropriation is insufficient to 
        make all transfers required in the year 
        for which it is made, the commissioner 
        of finance shall notify the committee 
        on state government finance of the 
        senate and the committee on ways and 
        means of the house of representatives 
        of the amount of the deficiency and 
        shall then transfer that amount under 
        the statutory open appropriation.  Any 
        excess appropriation cancels to the 
        trunk highway fund. 
        (b) Infrastructure Operations
        and Maintenance
           203,641,000    203,641,000 
        (c) Electronic Communications
             4,990,000      4,990,000 
                      Summary by Fund
        General                   9,000         9,000
        Trunk Highway         4,981,000     4,981,000
        $9,000 the first year and $9,000 the 
        second year are from the general fund 
        for equipment and operation of the 
        Roosevelt signal tower for Lake of the 
        Woods weather broadcasting. 
        Subd. 4.  Local Roads                538,310,000    548,292,000 
                      Summary by Fund
        C.S.A.H.            426,020,000   433,631,000
        M.S.A.S.            112,290,000   114,661,000
        The amounts that may be spent from this 
        appropriation for each activity are as 
        follows: 
        (a) County State Aids 
           426,020,000    433,631,000 
        This appropriation is from the county 
        state-aid highway fund and is available 
        until spent. 
        (b) Municipal State Aids     
           112,290,000     114,661,000
        This appropriation is from the 
        municipal state-aid street fund and is 
        available until spent. 
        If an appropriation for either county 
        state aids or municipal state aids does 
        not exhaust the balance in the fund 
        from which it is made in the year for 
        which it is made, the commissioner of 
        finance, upon request of the 
        commissioner of transportation, shall 
        notify the chair of the transportation 
        finance committee of the house of 
        representatives and the chair of the 
        transportation budget division of the 
        senate of the amount of the remainder 
        and shall then add that amount to the 
        appropriation.  The amount added is 
        appropriated for the purposes of county 
        state aids or municipal state aids, as 
        appropriate. 
        Subd. 5.  General Support   
        and Services                          56,430,000     51,980,000 
                      Summary by Fund
        General                  56,000        56,000
        Airports                 25,000        25,000
        Trunk Highway        56,349,000    51,899,000
        The amounts that may be spent from this 
        appropriation for each activity are as 
        follows: 
        (a) Department Support
            38,653,000     38,653,000 
                      Summary by Fund
        Airports                 25,000        25,000
        Trunk Highway        38,628,000    38,628,000
        (b) Buildings 
            17,777,000     13,327,000 
                      Summary by Fund
        General                  56,000        56,000
        Trunk Highway        17,721,000    13,271,000
        In fiscal year 2004, $4,450,000 of this 
        appropriation is to design, construct, 
        furnish, and equip a building in 
        Pennington county for the joint use of 
        the county of Pennington and 
        departments of transportation, public 
        safety, and natural resources for 
        vehicle maintenance and vehicle 
        storage.  This appropriation remains 
        available and does not lapse. 
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available for it. 
        Subd. 6.  Transfers                                             
        (a) With the approval of the 
        commissioner of finance, the 
        commissioner of transportation may 
        transfer unencumbered balances among 
        the appropriations from the trunk 
        highway fund and the state airports 
        fund made in this section.  No transfer 
        may be made from the appropriation for 
        state road construction.  No transfer 
        may be made from the appropriations for 
        debt service to any other appropriation.
        Transfers under this paragraph may not 
        be made between funds.  Transfers 
        between programs must be reported 
        immediately to the chair of the 
        transportation budget division of the 
        senate and the chair of the 
        transportation finance committee of the 
        house of representatives. 
        (b) The commissioner of finance shall 
        transfer from the flexible account in 
        the county state-aid highway fund 
        $14,400,000 the first year and 
        $8,300,000 the second year to the 
        municipal turnback account in the 
        municipal state-aid street fund, and 
        the remainder in each year to the 
        county turnback account in the county 
        state-aid highway fund. 
        Subd. 7.  Use of State Road 
        Construction Appropriations         
        Any money appropriated to the 
        commissioner of transportation for 
        state road construction for any fiscal 
        year before fiscal year 2004 is 
        available to the commissioner during 
        fiscal years 2004 and 2005 to the 
        extent that the commissioner spends the 
        money on the state road construction 
        project for which the money was 
        originally encumbered during the fiscal 
        year for which it was appropriated.  
        The commissioner of transportation 
        shall report to the commissioner of 
        finance by August 1, 2003, and August 
        1, 2004, on a form the commissioner of 
        finance provides, on expenditures made 
        during the previous fiscal year that 
        are authorized by this subdivision. 
        Subd. 8.  Contingent Appropriation                              
        The commissioner of transportation, 
        with the approval of the governor after 
        review by the legislative advisory 
        commission under Minnesota Statutes, 
        section 3.30, may transfer all or part 
        of the unappropriated balance in the 
        trunk highway fund to an appropriation 
        (1) for trunk highway design, 
        construction, or inspection in order to 
        take advantage of an unanticipated 
        receipt of income to the trunk highway 
        fund or to take advantage of Federal 
        Advanced Construction funding, (2) for 
        trunk highway maintenance in order to 
        meet an emergency, or (3) to pay tort 
        or environmental claims.  Any transfer 
        as a result of the use of Federal 
        Advanced Construction funding must 
        include an analysis of the effects on 
        the long-term trunk highway fund 
        balance.  The amount transferred is 
        appropriated for the purpose of the 
        account to which it is transferred. 
        Subd. 9.  Budget Base Reduction Report
        By December 15, 2003, and December 15, 
        2004, the commissioner of 
        transportation shall report to the 
        chairs of the senate and house of 
        representatives committees with 
        jurisdiction over transportation policy 
        and finance regarding the distribution 
        and impacts of the base budget 
        reductions.  The report must include a 
        description and enumeration of program 
        activities with reduced spending levels 
        and the impacts on the department's 
        performance measures.  The report must 
        identify the total number of positions 
        that were reduced or eliminated through 
        attrition or layoffs, the number of 
        positions reduced or eliminated in each 
        of the bargaining units represented 
        within the department, and the impact 
        on the number of women and minorities 
        employed by the department and the 
        department's affirmative action goals. 
        Sec. 3.  METROPOLITAN COUNCIL
        TRANSIT                               56,810,000     57,910,000 
        (a) The agency's budget base for fiscal 
        year 2006 is $57,503,000 and for fiscal 
        year 2007 is $58,753,000. 
        (b) Bus Transit
            54,010,000     54,010,000 
        This appropriation is for bus system 
        operations. 
        (c) Rail Operations
             2,800,000      3,900,000 
        This appropriation is for operations of 
        the Hiawatha LRT line.  The base for 
        rail operations for fiscal year 2006 is 
        $4,050,000 and for fiscal year 2007 is 
        $5,300,000. 
        This appropriation is for paying 50 
        percent of operating costs for the 
        Hiawatha light rail transit line after 
        operating revenue and federal funds are 
        used for light rail transit operations. 
        The remaining operating costs up to a 
        maximum of $2,800,000 the first year 
        and $3,900,000 the second year are to 
        be paid by the Hennepin county regional 
        rail authority, using any or all of 
        these sources: 
        (1) general tax revenues of Hennepin 
        county; 
        (2) the authority's reserves; and 
        (3) taxes levied under Minnesota 
        Statutes, section 398A.04, subdivision 
        8, notwithstanding any provision in 
        that subdivision that limits amounts 
        that may be levied for light rail 
        transit purposes. 
        By September 1, 2003, the metropolitan 
        council shall submit to Hennepin county 
        regional rail authority a proposed 
        detailed operations management plan for 
        Hiawatha light rail transit, covering 
        operations through June 30, 2005.  The 
        plan may include, without limitation, 
        operating plans concerning formation 
        and negotiation of contracts for 
        management or other services, service 
        schedules, fare policy, vehicle and 
        facility maintenance, and staffing.  
        The council may not implement or modify 
        the plan without the approval of 
        Hennepin county.  Minnesota Statutes, 
        section 473.392, does not apply to the 
        procurement by the council of operating 
        services for the Hiawatha light rail 
        transit line. 
        (d) Budget Base Reduction Report
        By December 15, 2003, and December 15, 
        2004, the chair of the metropolitan 
        council shall report to the chairs of 
        the senate and house of representatives 
        committees with jurisdiction over 
        transportation policy and finance 
        regarding the distribution and impacts 
        of the base budget reductions.  The 
        report must include a description and 
        enumeration of program activities with 
        reduced spending levels and the impacts 
        on transit service levels and 
        performance of the regular route and 
        metro mobility systems.  The report 
        must identify the total number of 
        positions that were reduced or 
        eliminated through attrition or 
        layoffs, the number of positions 
        reduced or eliminated in each of the 
        bargaining units represented within the 
        council, and the impact on the number 
        of women and minorities employed by the 
        council.  
        Sec. 4.  PUBLIC SAFETY
        Subdivision 1.  Total
        Appropriation                        117,894,000    118,059,000
                      Summary by Fund
        General               7,006,000     7,011,000
        Trunk Highway        97,533,000    97,693,000
        Highway User         12,211,000    12,211,000
        Special Revenue       1,144,000     1,144,000
        Subd. 2.  Administration 
        and Related Services                   9,684,000      9,689,000 
                      Summary by Fund
        General               2,361,000     2,366,000
        Trunk Highway         5,938,000     5,938,000
        Highway User          1,385,000     1,385,000
        (a) Office of Communications 
               385,000        385,000 
                      Summary by Fund
        General                  39,000        39,000
        Trunk Highway           346,000       346,000
        (b) Public Safety Support 
             6,845,000      6,850,000 
                      Summary by Fund
        General               2,231,000     2,236,000
        Trunk Highway         3,248,000     3,248,000
        Highway User          1,366,000     1,366,000
        $365,000 the first year and $370,000 
        the second year are for payment of 
        public safety officer survivor benefits 
        under Minnesota Statutes, section 
        299A.44.  If the appropriation for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it.  The base for fiscal 
        year 2006 is $375,000 and for fiscal 
        year 2007 is $380,000. 
        $314,000 the first year and $314,000 
        the second year are to be deposited in 
        the public safety officer's benefit 
        account.  This money is available for 
        reimbursements under Minnesota 
        Statutes, section 299A.465.  
        $508,000 the first year and $508,000 
        the second year are for soft body armor 
        reimbursements under Minnesota 
        Statutes, section 299A.38. 
        $792,000 the first year and $792,000 
        the second year are appropriated from 
        the general fund for transfer by the 
        commissioner of finance to the trunk 
        highway fund on December 31, 2003, and 
        December 31, 2004, respectively, in 
        order to reimburse the trunk highway 
        fund for expenses not related to the 
        fund.  These represent amounts 
        appropriated out of the trunk highway 
        fund for general fund purposes in the 
        administration and related services 
        program. 
        $610,000 the first year and $610,000 
        the second year are appropriated from 
        the highway user tax distribution fund 
        for transfer by the commissioner of 
        finance to the trunk highway fund on 
        December 31, 2003, and December 31, 
        2004, respectively, in order to 
        reimburse the trunk highway fund for 
        expenses not related to the fund.  
        These represent amounts appropriated 
        out of the trunk highway fund for 
        highway user tax distribution fund 
        purposes in the administration and 
        related services program. 
        $716,000 the first year and $716,000 
        the second year are appropriated from 
        the highway user tax distribution fund 
        for transfer by the commissioner of 
        finance to the general fund on December 
        31, 2003, and December 31, 2004, 
        respectively, in order to reimburse the 
        general fund for expenses not related 
        to the fund.  These represent amounts 
        appropriated out of the general fund 
        for operation of the criminal justice 
        data network related to driver and 
        motor vehicle licensing. 
        (c) Technical Support Services
             2,454,000      2,454,000 
                      Summary by Fund
        General                  91,000        91,000
        Trunk Highway         2,344,000     2,344,000
        Highway User             19,000        19,000
        Subd. 3.  State Patrol                69,832,000     70,032,000 
                      Summary by Fund
        General               2,871,000     2,871,000
        Trunk Highway        66,869,000    67,069,000
        Highway User             92,000        92,000
        (a) Patrolling Highways      
            60,524,000     60,724,000 
                      Summary by Fund
        General                  37,000        37,000
        Trunk Highway        60,395,000    60,595,000
        Highway User             92,000        92,000
        Of this appropriation, $3,500,000 the 
        first year and $3,700,000 the second 
        year are for the cost of adding state 
        patrol positions.  If money transferred 
        to the trunk highway fund in either 
        year from the alcohol enforcement 
        account in the special revenue fund is 
        less than the amount specified for that 
        year in this paragraph, the 
        commissioner shall make up the 
        difference by transferring to the trunk 
        highway fund money allocated to the 
        commissioner under the federal repeat 
        offender transfer program, Public Law 
        105-206, section 164. 
        (b) Commercial Vehicle Enforcement
             6,474,000      6,474,000 
        This appropriation is from the trunk 
        highway fund. 
        (c) Capitol Security         
             2,834,000      2,834,000 
        The commissioner may not (1) spend any 
        money from the trunk highway fund for 
        capitol security, or (2) permanently 
        transfer any state trooper from the 
        patrolling highways activity to capitol 
        security. 
        The commissioner may not transfer any 
        money (1) appropriated for department 
        of public safety administration, the 
        patrolling of highways, commercial 
        vehicle enforcement, or driver and 
        vehicle services to capitol security or 
        (2) from capitol security. 
        Subd. 4.  Driver and Vehicle Services
            36,910,000     36,870,000 
                      Summary by Fund
        General               1,774,000     1,774,000
        Trunk Highway        24,402,000    24,362,000
        Highway User         10,734,000    10,734,000
        (a) Vehicle Services         
            12,452,000     12,452,000 
                      Summary by Fund
        General               1,718,000     1,718,000
        Highway User         10,734,000    10,734,000
        (b) Driver Services          
            24,458,000     24,418,000 
                      Summary by Fund
        General                  56,000        56,000
        Trunk Highway        24,402,000    24,362,000
        Subd. 5.  Traffic Safety                 324,000        324,000 
        This appropriation is from the trunk 
        highway fund. 
        The commissioners of public safety and 
        transportation shall jointly report 
        annually to the chairs and ranking 
        minority members of the house of 
        representatives and senate committees 
        having jurisdiction over transportation 
        and public safety finance issues on the 
        expenditure of any federal funds 
        available under the repeat offender 
        transfer program, Public Law 105-206, 
        section 164. 
        The commissioner of transportation 
        shall spend 50 percent of the money 
        available to the state under Public Law 
        105-206, section 164, for hazard 
        elimination activities under United 
        States Code, title 23, section 152, and 
        the remaining 50 percent must be 
        transferred to the commissioner of 
        public safety. 
        Subd. 6.  Pipeline Safety                994,000        994,000 
        This appropriation is from the pipeline 
        safety account in the special revenue 
        fund. 
        Subd. 7.  Alcohol and Gambling 
        Enforcement                              150,000        150,000 
        This appropriation, or so much thereof 
        as is necessary, is from the alcohol 
        enforcement account in the special 
        revenue fund and is for alcohol 
        enforcement and administration.  This 
        appropriation is in addition to any 
        other appropriation for this purpose. 
        Subd. 8.  Budget Base Reductions Report
        By December 15, 2003, and December 15, 
        2004, the commissioner of public safety 
        shall report to the chairs of the 
        senate and house of representatives 
        committees with jurisdiction over 
        transportation policy and finance 
        regarding the distribution of and 
        impacts of the base budget reductions 
        to administration and related services, 
        driver and vehicle services, and 
        capitol security.  The report must 
        include a description of the program 
        activities with reduced spending levels 
        and the impacts on the department's 
        performance.  The report must identify 
        the total number of positions that were 
        reduced or eliminated, the number of 
        positions reduced or eliminated in each 
        of the bargaining units represented 
        within the department, and the impact 
        on the number of women and minorities 
        employed by the department and the 
        department's affirmative action goals. 
        Sec. 5.  GENERAL CONTINGENT 
        ACCOUNTS                                 375,000        375,000 
                      Summary by Fund
        Trunk Highway           200,000       200,000
        Highway User            125,000       125,000
        Airports                 50,000        50,000
        The appropriations in this section may 
        only be spent with the approval of the 
        governor after consultation with the 
        legislative advisory commission 
        pursuant to Minnesota Statutes, section 
        3.30. 
        If an appropriation in this section for 
        either year is insufficient, the 
        appropriation for the other year is 
        available for it. 
        Sec. 6.  TORT CLAIMS                     600,000        600,000 
        To be spent by the commissioner of 
        finance. 
        This appropriation is from the trunk 
        highway fund. 
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available for it. 
        Sec. 7.  COMMERCE                        527,000        -0- 
        This appropriation is from the 
        petroleum tank release cleanup fund for 
        the weights and measures division of 
        the department of commerce to inspect 
        and test petroleum measuring 
        equipment.  This appropriation may not 
        be transferred. 
           Sec. 8.  Minnesota Statutes 2002, section 239.101, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [TEMPORARY PETROLEUM INSPECTION COST 
        RECOVERY.] Until July 1, 2004, the cost of inspecting petroleum 
        measuring equipment must be considered one of the expenditures 
        that may be recovered under section 115C.08, subdivision 4, 
        notwithstanding any other provision of this section or section 
        115C.08. 

                                   ARTICLE 2 
                    OTHER CHANGES RELATED TO TRANSPORTATION
                               AND PUBLIC SAFETY 
           Section 1.  Minnesota Statutes 2002, section 13.44, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REAL PROPERTY; APPRAISAL DATA.] (a) 
        [CONFIDENTIAL OR PROTECTED NONPUBLIC DATA.] Estimated or 
        appraised values of individual parcels of real property which 
        are made by personnel of the state, its agencies and 
        departments, or a political subdivision or by independent 
        appraisers acting for the state, its agencies and departments, 
        or a political subdivision for the purpose of selling or 
        acquiring land through purchase or condemnation are classified 
        as confidential data on individuals or protected nonpublic data. 
           (b)  [PUBLIC DATA.] The data made confidential or protected 
        nonpublic by the provisions of paragraph (a) shall become public 
        upon the occurrence of any of the following:  
           (1) the negotiating parties exchange appraisals; 
           (2) the data are submitted to a court appointed 
        condemnation commissioner; 
           (3) the data are presented in court in condemnation 
        proceedings; or 
           (4) the negotiating parties enter into an agreement for the 
        purchase and sale of the property; or 
           (5) the data are submitted to the owner under section 
        117.036. 
           Sec. 2.  Minnesota Statutes 2002, section 16A.88, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GREATER MINNESOTA TRANSIT FUND.] The 
        greater Minnesota transit fund is established within the state 
        treasury.  Money in the fund is annually appropriated to the 
        commissioner of transportation for assistance to transit systems 
        outside the metropolitan area under section 174.24.  Beginning 
        in fiscal year 2003, the commissioner may use up to $400,000 
        each year for administration of the transit program.  The 
        commissioner shall use the fund for transit operations as 
        provided in section 174.24 and related program administration. 
           Sec. 3.  [117.036] [APPRAISAL AND NEGOTIATION REQUIREMENTS 
        APPLICABLE TO ACQUISITION OF PROPERTY FOR TRANSPORTATION 
        PURPOSES.] 
           Subdivision 1.  [APPLICATION.] This section applies to the 
        acquisition of property for public highways, streets, roads, 
        alleys, airports, mass transit facilities, or for other 
        transportation facilities or purposes. 
           Subd. 2.  [APPRAISAL.] (a) Before commencing an eminent 
        domain proceeding under this chapter, the acquiring authority 
        must obtain at least one appraisal for the property proposed to 
        be acquired.  In making the appraisal, the appraiser must confer 
        with one or more of the owners of the property, if reasonably 
        possible.  At least 20 days before presenting a petition under 
        section 117.055, the acquiring authority must provide the owner 
        with a copy of the appraisal and inform the owner of the owner's 
        right to obtain an appraisal under this section. 
           (b) The owner may obtain an appraisal by a qualified 
        appraiser of the property proposed to be acquired.  The owner is 
        entitled to reimbursement for the reasonable costs of the 
        appraisal from the acquiring authority up to a maximum of $1,500 
        within 30 days after the owner submits to the acquiring 
        authority the information necessary for reimbursement, provided 
        that the owner does so within 60 days after the owner receives 
        the appraisal from the authority under paragraph (a). 
           Subd. 3.  [NEGOTIATION.] In addition to the appraisal 
        requirements under subdivision 2, before commencing an eminent 
        domain proceeding, the acquiring authority must make a good 
        faith attempt to negotiate personally with the owner of the 
        property in order to acquire the property by direct purchase 
        instead of the use of eminent domain proceedings.  In making 
        this negotiation, the acquiring authority must consider the 
        appraisals in its possession and other information that may be 
        relevant to a determination of damages under this chapter. 
           Sec. 4.  Minnesota Statutes 2002, section 117.232, 
        subdivision 1, is amended to read: 
           Subdivision 1.  When acquisition of private property is 
        accomplished by the state department of transportation by direct 
        purchase the owner shall be entitled to reimbursement for 
        appraisal fees, not to exceed a total of $500 $1,500.  When 
        acquisition of private property is accomplished by any other 
        acquiring authority, the owner is entitled to reimbursement for 
        appraisal fees, not to exceed $500 $1,500, if the owner is 
        otherwise entitled to reimbursement under sections 117.50 to 
        117.56.  The purchaser in all instances shall inform the owner 
        of the right, if any, to reimbursement for appraisal fees 
        reasonably incurred, in an amount not to exceed $500 $1,500, 
        together with relocation costs, moving costs and any other 
        related expenses to which an owner is entitled by sections 
        117.50 to 117.56.  This subdivision does not apply to 
        acquisition for utility purposes made by a public service 
        corporation organized pursuant to section 300.03 or electric 
        cooperative associations organized pursuant to chapter 308A. 
           Sec. 5.  Minnesota Statutes 2002, section 138.40, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COMPLIANCE, ENFORCEMENT, PRESERVATION.] State 
        and other governmental agencies shall comply with and aid in the 
        enforcement of provisions of sections 138.31 to 138.42.  
        Conservation officers and other enforcement officers of the 
        department of natural resources shall enforce the provisions of 
        sections 138.31 to 138.42 and report violations to the director 
        of the society.  When archaeological or historic sites are known 
        or, based on scientific investigations or are suspected 
        predicted to exist on public lands or waters, the agency or 
        department controlling said lands or waters shall use the 
        professional services of archaeologists from the University of 
        Minnesota, Minnesota historical society, or other qualified 
        professional archaeologists, to preserve these sites.  In the 
        event that archaeological excavation is required to protect or 
        preserve these sites, state and other governmental agencies may 
        use their funds for such activities. 
           Sec. 6.  Minnesota Statutes 2002, section 138.40, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REVIEW OF PLANS.] When significant 
        archaeological or historic sites are known or suspected, based 
        on scientific investigations, are predicted to exist on public 
        lands or waters, the agency or department controlling said lands 
        or waters shall submit construction or development plans to the 
        state archaeologist and the director of the society for review 
        prior to the time bids are advertised.  The state archaeologist 
        and the society shall promptly review such plans and within 30 
        days of receiving the plans shall make recommendations for the 
        preservation of archaeological or historic sites which may be 
        endangered by construction or development activities.  When 
        archaeological or historic sites are related to Indian history 
        or religion, the state archaeologist shall submit the plans to 
        the Indian affairs council for the council's review and 
        recommend action.  
           Sec. 7.  [160.93] [USER FEES; HIGH-OCCUPANCY VEHICLE 
        LANES.] 
           Subdivision 1.  [FEES AUTHORIZED.] To improve efficiency 
        and provide more options to individuals traveling in a trunk 
        highway corridor, the commissioner of transportation may charge 
        user fees to owners or operators of single-occupant vehicles 
        using designated high-occupancy vehicle lanes.  The fees may be 
        collected using electronic or other toll-collection methods and 
        may vary in amount with the time of day and level of traffic 
        congestion within the corridor.  The commissioner shall consult 
        with the metropolitan council and obtain necessary federal 
        authorizations before implementing user fees on a high-occupancy 
        vehicle lane.  Fees under this section are not subject to 
        section 16A.1283. 
           Subd. 2.  [DEPOSIT OF REVENUES; APPROPRIATION.] Money 
        collected from fees authorized under subdivision 1 must be 
        deposited in a high-occupancy vehicle lane user fee account in 
        the special revenue fund.  A separate account must be 
        established for each trunk highway corridor.  Money in the 
        account is appropriated to the commissioner.  From this 
        appropriation the commissioner shall first repay the trunk 
        highway fund and any other fund source for money spent to 
        install equip or modify the corridor for the purposes of 
        subdivision 1, and then shall pay all the costs of implementing 
        and administering the fee collection system for that corridor.  
        The commissioner shall spend remaining money in the account as 
        follows: 
           (1) one-half must be spent for transportation capital 
        improvements within the corridor; and 
           (2) one-half must be transferred to the metropolitan 
        council for expansion and improvement of bus transit services 
        within the corridor beyond the level of service provided on the 
        date of implementation of subdivision 1. 
           Subd. 3.  [EXEMPTIONS.] With respect to this section, the 
        commissioner is exempt from statutory rulemaking requirements, 
        including section 14.386, and from sections 160.84 to 160.92 and 
        161.162 to 161.167. 
           Subd. 4.  [PROHIBITION.] No person may operate a single 
        occupant vehicle in a designated high-occupancy vehicle lane 
        except in compliance with the requirements of the commissioner.  
        A person who violates this subdivision is guilty of a petty 
        misdemeanor and is subject to sections 169.89, subdivisions 1, 
        2, and 4, and 169.891 and any other provision of chapter 169 
        applicable to the commission of a petty misdemeanor traffic 
        offense. 
           Sec. 8.  Minnesota Statutes 2002, section 161.08, is 
        amended to read: 
           161.08 [BOOKS OF ACCOUNT RECORDS AND REPORTS.] 
           Subdivision 1.  [BOOKS OF ACCOUNT.] (a) The commissioner 
        shall keep accurate and complete books of account as may be 
        prescribed by the commissioner of finance, the same to show in 
        detail itemized receipts and disbursements of the trunk highway 
        fund.  The books of account shall show the following facts, 
        among others: 
           (1) the expenses of maintaining the transportation 
        department, including the salaries and expenses of the 
        individual members thereof; 
           (2) the amounts of money expended in each county of the 
        state for the construction of trunk highways, and when, where, 
        and upon what job or portion of road expended so that the cost 
        per mile of such construction can be easily ascertained; 
           (3) any other money expended by the state in connection 
        with any roads other than trunk highways and when, where, and 
        upon what portion of road so expended; and 
           (4) the amount of road equipment and materials purchased, 
        and when, where, and from whom purchased, and the price paid for 
        each item.  
           (b) The original invoices shall form a part of the 
        permanent files and records in the department of transportation 
        and be open to public inspection.  
           Subd. 2.  [BIENNIAL REPORT.] No later than October 15 of 
        each odd-numbered year, the commissioner shall report to the 
        legislature the total expenditures from the trunk highway fund 
        during the previous biennium in each of the following 
        categories:  road construction; planning; professional and 
        technical contracts; design and engineering; labor; compliance 
        with environmental requirements; acquisition of right-of-way; 
        litigation costs, including payment of claims, settlements, and 
        judgments; maintenance; and road operations.  As part of each 
        report the commissioner shall select two representative trunk 
        highway construction projects, one each from the department's 
        metropolitan district and from greater Minnesota, and for each 
        project report the cost of environmental mitigation and 
        compliance. 
           Sec. 9.  Minnesota Statutes 2002, section 161.20, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TRUNK HIGHWAY FUND APPROPRIATIONS.] The 
        commissioner may expend trunk highway funds only for trunk 
        highway purposes.  Payment of expenses related to sales tax, 
        bureau of criminal apprehension laboratory, office of tourism 
        kiosks, Minnesota safety council, tort claims, driver education 
        programs, emergency medical services board, and Mississippi 
        River parkway commission do not further a highway purpose and do 
        not aid in the construction, improvement, or maintenance of the 
        highway system. 
           Sec. 10.  [161.368] [HIGHWAY MAINTENANCE, DESIGN, AND 
        CONSTRUCTION CONTRACT WITH TRIBAL AUTHORITIES.] 
           On behalf of the state, the commissioner may enter into 
        agreements with Indian tribal authorities for the purpose of 
        providing maintenance, design, and construction to highways on 
        tribal lands.  These agreements may include (1) a provision for 
        waiver of immunity from suit by a party to the contract on the 
        part of the tribal authority with respect to any controversy 
        arising out of the contract and (2) a provision conferring 
        jurisdiction on state district courts to hear such a controversy.
           Sec. 11.  Minnesota Statutes 2002, section 162.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION.] There is created a county 
        state-aid highway system which must be established, located, 
        constructed, reconstructed, improved, and maintained as public 
        highways by the counties under rules not inconsistent with this 
        section made and promulgated by the commissioner as provided in 
        this chapter.  The counties are vested with the rights, title, 
        easements, and their appurtenances, held by or vested in any of 
        the towns or municipal subdivisions or dedicated to the public 
        use prior to the time a road or portion of a road is taken over 
        by the county as a county state-aid highway.  If a county 
        state-aid highway is established over a center portion of a 
        street in a city having a population of 5,000 or more, then the 
        remaining portion of the street may be established as a 
        municipal state-aid street. 
           Sec. 12.  Minnesota Statutes 2002, section 162.02, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RULES; ADVISORY COMMITTEE.] The rules shall be 
        made and promulgated by the commissioner acting with the advice 
        of a committee which shall be selected by the several county 
        boards acting through the officers of the statewide association 
        of county commissioners.  The committee shall be composed of 
        nine members so selected that each member shall be from a 
        different state highway construction district.  Not more than 
        five of the nine members of the committee shall be county 
        commissioners.  The remaining members shall be county highway 
        engineers.  The committee expires as provided in section 15.059, 
        subdivision 5.  In the event that agreement cannot be reached on 
        any rule the commissioner's determination shall be final.  The 
        rules shall be printed and copies thereof shall be forwarded to 
        the county auditors and the county engineers of the several 
        counties.  
           Sec. 13.  Minnesota Statutes 2002, section 162.02, 
        subdivision 4, is amended to read: 
           Subd. 4.  [LOCATION AND ESTABLISHMENT; COMMISSIONER'S 
        REVIEW.] The county boards of the several counties shall by 
        resolution and subject to the concurrence of the commissioner 
        locate and establish a system of county state-aid highways in 
        accordance with the rules made and promulgated by the 
        commissioner.  It shall be the duty of the commissioner to 
        review each system considering the availability of funds and the 
        desirability of each system in relation to an integrated and 
        coordinated system of highways.  After review the commissioner 
        shall by written order approve each system or any part thereof 
        which in the commissioner's judgment is feasible and desirable.  
        A certified copy of the order shall be filed with the county 
        auditor and the county engineer. 
           Sec. 14.  Minnesota Statutes 2002, section 162.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION; MILEAGE LIMITATION; RULES.] 
        There is created a municipal state-aid street system within 
        statutory and home rule charter cities having a population of 
        5,000 or more.  The extent of the municipal state-aid street 
        system for a city shall not exceed:  (1) 20 percent of the total 
        miles of city streets and county roads partially or totally 
        within the jurisdiction of that city, plus (2) the mileage of 
        all trunk highways reverted or turned back to the jurisdiction 
        of the city pursuant to law on and after July 1, 1965, plus (3) 
        the mileage of county highways reverted or turned back to the 
        jurisdiction of the city pursuant to law on or after May 11, 
        1994.  For purposes of this subdivision, the total miles of city 
        streets and county roads within the jurisdiction of a city 
        includes all miles of county highways turned back to that city's 
        jurisdiction on or after May 11, 1994.  The system shall be 
        established, located, constructed, reconstructed, improved, and 
        maintained as public highways partially or totally within such 
        cities under rules, not inconsistent with this section, made and 
        promulgated by the commissioner as hereinafter provided. 
           Sec. 15.  Minnesota Statutes 2002, section 163.07, 
        subdivision 2, is amended to read: 
           Subd. 2.  [QUALIFICATIONS, SALARY AND TERM.] The county 
        highway engineer shall be a registered highway or civil 
        engineer, registered under the laws of the state of Minnesota.  
        The county highway engineer may be selected from a list of 
        eligible registered highway engineers prepared by the 
        commissioner of transportation.  The list shall be submitted by 
        the commissioner of transportation to any county board 
        requesting same.  The county board may appoint a new county 
        engineer for a term of only one year.  All reappointments shall 
        be for a term of four years, and shall be made in May of the 
        year in which the term expires.  The county highway engineer 
        shall be a citizen and resident of this state.  The county 
        highway engineer's salary shall be fixed by the county board and 
        shall be payable the same as other county officers are paid.  
        The salary shall not be reduced during the county highway 
        engineer's term of office. 
           Sec. 16.  Minnesota Statutes 2002, section 163.11, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [DESIGNATION AS COUNTY CARTWAY.] A county board 
        that has vacated a county highway under subdivision 4 may 
        designate, as part of the vacating resolution, the former county 
        highway as a county cartway.  A highway designated as a county 
        cartway is a county highway for purposes of this chapter, but 
        the county board may not expend money from its road and bridge 
        fund on the maintenance or improvement of a county cartway 
        unless the county board determines that the expenditure is in 
        the public interest.  With the exception of the process provided 
        in subdivision 5a, a county highway right-of-way that has been 
        vacated, extinguished, or otherwise removed from the county 
        highway system may not revert to a town. 
           Sec. 17.  Minnesota Statutes 2002, section 163.11, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [TRANSFER OF JURISDICTION OVER COUNTY 
        HIGHWAY.] Notwithstanding subdivision 5, the county board may 
        transfer jurisdiction and ownership of a county highway to 
        another road authority, an agency of the United States, an 
        agency of the state, or to an Indian tribe upon agreement 
        between the county and the authority, agency, or tribe to which 
        the transfer is being made.  Subdivision 5a provides the 
        exclusive method of county highway reversion to towns. 
           Sec. 18.  Minnesota Statutes 2002, section 164.12, is 
        amended to read: 
           164.12 [ROAD ON TOWN LINE.] 
           Subdivision 1.  [PROPOSAL TO ESTABLISH; MAINTAIN.] When 
        adjoining towns propose to establish, alter, or vacate, or 
        maintain a road on or along the line between such towns they 
        shall proceed as hereinafter provided.  
           Subd. 2.  [DIVISION OF RESPONSIBILITIES.] The town boards 
        shall divide the length of the road proposed to be established, 
        altered, or vacated, or maintained into two parts.  When it is 
        proposed to establish or alter a road, the division shall be 
        made so as to divide as nearly equal as possible the cost of 
        right-of-way, construction, and maintenance of the entire road.  
        If the proposal is to vacate a road, the division shall be made 
        so as to divide as nearly equal as possible any damages that may 
        be occasioned thereby.  
           Subd. 3.  [AGREEMENT.] After the division the boards shall 
        enter into an agreement specifying which part shall be vacated, 
        or opened, constructed, and maintained by each.  Thereafter, 
        each board shall proceed in the manner and subject to the same 
        review as provided in section 164.06 or section 164.07.  
           Subd. 4.  [JOINT CONTRACT.] When a town line road is 
        established or, altered, or maintained as provided herein, the 
        boards may jointly let a contract covering all or part of the 
        work to be performed on the road.  If a joint contract is not 
        let each town board shall open and construct its portion thereof 
        as expeditiously as possible.  
           Subd. 5.  [PORTION OF ROAD TAKEN BY STATE OR COUNTY.] If a 
        portion of a town line road is taken over by the state as a 
        trunk highway, or by a county as a county state-aid highway or 
        county highway, the town boards concerned shall divide the 
        portions of the town line road not taken over by the state or 
        county, so that the cost of construction, reconstruction, and 
        maintenance thereof will be apportioned as nearly equal as 
        possible.  After such division the boards shall enter into an 
        agreement specifying which part shall be constructed and 
        maintained by each.  
           Subd. 6.  [FAILURE TO AGREE.] (a) When the town boards 
        cannot agree upon a division as provided in subdivision 2 or 
        subdivision 5, or upon the petition of either town board when a 
        division previously agreed upon has proved to be inequitable, 
        the county board, or where the road is on a county line the 
        county boards of the counties concerned, shall determine the 
        proper division of responsibility.  In making such division the 
        county board or boards shall follow the procedure provided for 
        in subdivision 2 or 5.  Where deemed necessary the services of 
        the county engineer may be used. 
           (b) When for any reason an agreement under paragraph (a) 
        cannot be reached, the town board of either or both towns may 
        request to have the matter determined through mediation, 
        arbitration, mediation-arbitration (med-arb), or other form of 
        alternative dispute resolution as described in Rule 114.02 of 
        the General Rules of Practice for the District Courts.  The 
        parties may select a neutral who does not qualify under Rule 
        114.02.  Mediated settlement agreements must be in accordance 
        with the Minnesota Civil Mediation Act, sections 572.31 to 
        572.40.  Arbitrated agreements and med-arb agreements must be 
        final and binding. 
           Sec. 19.  Minnesota Statutes 2002, section 168.011, 
        subdivision 22, is amended to read: 
           Subd. 22.  [SPECIAL MOBILE EQUIPMENT.] "Special mobile 
        equipment" means every vehicle not designed or used primarily 
        for the transportation of persons or property and only 
        incidentally operated or moved over a highway, including but not 
        limited to:  ditch-digging apparatuses, moving dollies, pump 
        hoists and other water well-drilling equipment registered under 
        chapter 103I, street-sweeping vehicles, and other machinery such 
        as asphalt spreaders, bituminous mixers, bucket loaders, 
        tractors other than truck-tractors, ditchers, leveling graders, 
        finishing machines, motor graders, road rollers, scarifiers, 
        truck-mounted log loaders, earth-moving carryalls, scrapers, 
        power shovels, draglines, self-propelled cranes, and 
        earth-moving equipment.  The term does not include travel 
        trailers, dump trucks, truck-mounted transit mixers, 
        truck-mounted feed grinders, or other motor vehicles designed 
        for the transportation of persons or property to which machinery 
        has been attached. 
           Sec. 20.  Minnesota Statutes 2002, 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 on it, the sum of which constitutes 
        the gross weight upon which the license tax must be paid.  
        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 a motor vehicle, trailer, or 
        semitrailer 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; provided that, a vehicle 
        transporting unfinished forest products on a highway, other than 
        a highway that is part of the system of interstate and defense 
        highways, unless a federal exemption is granted, in accordance 
        with paragraph (d)(3): 
           (1) 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; and 
           (2) between the dates set by the commissioner in accordance 
        with section 169.826, subdivision 1, is not subject to any 
        provision of paragraph (d) or chapter 169 limiting the gross 
        axle weight of any individual axle unless the entire vehicle 
        also exceeds its gross vehicle weight plus its weight allowance 
        allowed in clause (1) and plus any weight allowance permitted 
        under section 169.826, in which case the vehicle is subject to 
        all applicable penalties for excess weight violations. 
           (c) The gross weight of the motor vehicle, trailer, or 
        semitrailer for which the license tax is paid must be indicated 
        by a distinctive character on the license plate or plates except 
        as provided in subdivision 12 and the plate or plates 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, is guilty of a misdemeanor and subject 
        to increased registration or reregistration according to the 
        following schedule: 
           (1) Upon conviction for transporting a gross weight in 
        excess of the gross weight for which a motor vehicle, trailer, 
        or semitrailer is registered by more than 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 sections 169.822 to 169.829 by more than the 
        allowance set forth in paragraph (b) 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 sections 169.822 to 
        169.829, that additional amount must nevertheless be paid into 
        the highway fund, but the additional tax thus paid does not 
        authorize or permit any person to operate the vehicle with a 
        gross weight in excess of the maximum legal weight as provided 
        by sections 169.822 to 169.829.  Unless the owner within 30 days 
        after a conviction applies to increase the authorized weight and 
        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) 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 the vehicle or trailer with an axle 
        weight exceeding the maximum lawful axle load as provided in 
        sections 169.822 to 169.829 by 25 percent or more, and in 
        addition to any penalty imposed for the misdemeanor, the 
        registrar shall either (i) cancel the reciprocity privileges on 
        the vehicle involved if the vehicle is being operated under 
        reciprocity or (ii) if the vehicle is not being operated under 
        reciprocity, cancel the certificate of registration on the 
        vehicle operated and 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 continuous or 
        noncontinuous transportation of unfinished forest products from 
        the place of production to the place of 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 this 
        section, the vehicle 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 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 must be at the full annual 
        registration fee without regard to the percentage of vehicle 
        miles traveled in this state. 
           Sec. 21.  Minnesota Statutes 2002, section 168.12, 
        subdivision 2e, is amended to read: 
           Subd. 2e.  [VOLUNTEER AMBULANCE ATTENDANTS; SPECIAL 
        PLATES.] (a) The registrar shall issue special license plates to 
        an applicant who is a volunteer ambulance attendant as defined 
        in section 144E.001, subdivision 15, and who owns or jointly 
        owns a motor vehicle taxed as a passenger automobile.  The 
        registrar shall issue the special plates on payment of the 
        registration tax required by law for the vehicle, compliance 
        with all other applicable laws relating to registration and 
        licensing of motor vehicles and drivers, and payment of an 
        additional fee of $10.  The registrar shall not issue more than 
        one set two sets of these plates to each qualified applicant. 
           (b) A person may use special plates issued under this 
        subdivision only during the period that the person is a 
        volunteer ambulance attendant.  When the person to whom the 
        special plates were issued ceases to be a volunteer ambulance 
        attendant, or the person shall return each set of special plates 
        issued to that person.  When ownership of the a vehicle is 
        transferred, the person shall remove the special plates from the 
        that vehicle and return them to the registrar.  On return of the 
        each set of plates, the owner of the vehicle, or new owner in 
        case of a transferred vehicle, is entitled to receive regular 
        license plates for the vehicle without cost for the rest of the 
        registration period for which the set of special plates were 
        issued.  Special plates issued under this subdivision may be 
        transferred to another vehicle owned by the volunteer ambulance 
        attendant on payment of a fee of $5. 
           (c) The fees specified in this subdivision must be paid 
        into the state treasury and deposited in the highway user tax 
        distribution fund.  
           (d) The commissioner may adopt rules governing the design, 
        issuance, and sale of the special plates authorized by this 
        subdivision. 
           Sec. 22.  Minnesota Statutes 2002, section 168.12, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ADDITIONAL FEE.] (a) In addition to any fee 
        otherwise authorized or any tax otherwise imposed upon any motor 
        vehicle, the payment of which is required as a condition to the 
        issuance of any number license plate or plates, the commissioner 
        of public safety may shall impose a the fee specified in 
        paragraph (b) that is calculated to cover the cost of 
        manufacturing and issuing the license plate or plates, except 
        for license plates issued to disabled veterans as defined in 
        section 168.031 and license plates issued pursuant to section 
        168.124, 168.125, or 168.27, subdivisions 16 and 17, for 
        passenger automobiles.  Graphic design license plates shall only 
        be issued for vehicles registered pursuant to section 168.017 
        and recreational vehicles registered pursuant to section 
        168.013, subdivision 1g. 
           (b) Unless otherwise specified or exempted by statute, the 
        following plate and validation sticker fees apply for the 
        original, duplicate, or replacement issuance of a plate in a 
        plate year: 
        Sequential Double Plate                          $ 4.25
        Sequential Special Plate-Double                  $ 7.00
        Sequential Single Plate                          $ 3.00
        Sequential Special Plate-Single                  $ 5.50
        Self-Adhesive Plate                              $ 2.50
        Nonsequential Double Plate                       $14.00
        Nonsequential Single Plate                       $10.00
        Duplicate Sticker                                $ 1.00
           (c) Fees collected under this subdivision must be paid into 
        the state treasury and credited to the highway user tax 
        distribution fund. 
           Sec. 23.  [168.1293] [SPECIAL LICENSE PLATES; 
        AUTHORIZATION; DISCONTINUANCE.] 
           Subdivision 1.  [DEFINITION.] For purposes of this section 
        and section 168.1297 "special license plate" means a license 
        plate that is authorized by law to have wording and graphics 
        that differ from a Minnesota passenger vehicle license plate. 
           Subd. 2.  [SUBMISSIONS TO DEPARTMENT.] (a) A person, legal 
        entity, or other requester, however organized, that plans to 
        seek legislation establishing a new special license plate shall 
        submit the following information and fee to the department of 
        public safety: 
           (1) The requester shall submit a request for the special 
        license plate being sought, describing the proposed license 
        plate in general terms, the purpose of the plate, and the 
        proposed fee or minimum contribution required for the plate. 
           (2) The requester shall submit the results of a scientific 
        sample survey of Minnesota motor vehicle owners that indicates 
        that at least 10,000 motor vehicle owners intend to purchase the 
        proposed plate with the proposed fee or minimum contribution.  
        The requester's plan to undertake the survey must be reported to 
        the department before the survey is undertaken.  The survey must 
        be performed independently of the requester by another person or 
        legal entity, however organized, that conducts similar sample 
        surveys in the normal course of business. 
           (3) The requester shall submit an application fee of 
        $20,000, to cover the department's cost of reviewing the 
        application and developing the special license plate if 
        authorized.  State funds may not be used to pay the application 
        fee. 
           (4) The requester shall submit a marketing strategy that 
        contains (i) short-term and long-term marketing plans for the 
        requested plate, and (ii) a financial analysis showing the 
        anticipated revenues and the planned expenditures of any fee or 
        contribution derived from the requested plate. 
           (b) The requester shall submit the information required 
        under paragraph (a) to the department at least 120 days before 
        the convening of the next regular legislative session at which 
        the requester will submit the proposal. 
           Subd. 3.  [DESIGN; REDESIGN.] (a) If the special license 
        plate sought by the requester is approved by law, the requester 
        shall submit the proposed design for the plate to the department 
        as soon as practicable, but not later than 120 days after the 
        effective date of the law authorizing issuance of the plate.  
        The department is responsible for selecting the final design for 
        the special license plate. 
           (b) The requester that originally requested a special 
        license plate subsequently approved by law may not submit a new 
        design for the plate within the five years following the date of 
        first issuance of the plate unless the inventory of those plates 
        has been exhausted.  The requester may deplete the remaining 
        inventory of the plates by reimbursing the department for the 
        cost of the plates. 
           Subd. 4.  [REFUND OF FEE.] If the special license plate 
        requested is not authorized in the legislative session at which 
        authorization was sought, the department shall refund $17,500 of 
        the application fee to the requester. 
           Subd. 5.  [DISCONTINUANCE OF PLATE.] (a) The department 
        shall discontinue the issuance or renewal of any special license 
        plate if (1) fewer than 1,000 sets of those plates are currently 
        registered at the end of the first six years during which the 
        plates are available, or (2) fewer than 1,000 sets of those 
        plates are currently registered at the end of any subsequent 
        two-year period following the first six years of availability. 
           (b) The department may discontinue the issuance or renewal 
        of any special license plate, and distribution of any 
        contributions resulting from that plate, if the department 
        determines that (1) the fund or requester receiving the 
        contributions no longer exists, (2) the requester has stopped 
        providing services that are authorized to be funded from the 
        contribution proceeds, (3) the requester has requested 
        discontinuance, or (4) contributions have been used in violation 
        of subdivision 6. 
           (c) Nothing in this subdivision applies to license plates 
        issued under section 168.123, 168.124, 168.125, or 168.1255. 
           Subd. 6.  [USE OF CONTRIBUTIONS.] Contributions made as a 
        condition of obtaining a special license plate, and interest 
        earned on the contributions, may not be spent for commercial or 
        for-profit purposes. 
           Subd. 7.  [DEPOSIT OF FEE; APPROPRIATION.] The commissioner 
        shall deposit the application fee under subdivision 2, paragraph 
        (a), clause (3), in the highway user tax distribution fund.  An 
        amount sufficient to pay the department's cost in implementing 
        and administering this section, including payment of refunds 
        under subdivision 4, is appropriated to the commissioner. 
           Sec. 24.  [168.1297] [SPECIAL "ROTARY MEMBER" LICENSE 
        PLATES.] 
           Subdivision 1.  [GENERAL REQUIREMENTS AND PROCEDURES.] The 
        registrar shall issue special "Rotary member" license plates to 
        an applicant who: 
           (1) is an owner or joint owner of a passenger automobile, 
        pickup truck, or van; 
           (2) pays a fee of $10 to cover the costs of handling and 
        manufacturing the plates; 
           (3) pays the registration tax required under section 
        168.013; 
           (4) pays the fees required under this chapter; 
           (5) submits proof to the registrar that the applicant is a 
        member of Rotary International; and 
           (6) complies with laws and rules governing registration and 
        licensing of vehicles and drivers. 
           Subd. 2.  [DESIGN.] A special license plate under this 
        section consists of a special license plate as described in 
        section 168.1291 with a unique symbol that is the recognized 
        emblem of Rotary International. 
           Subd. 3.  [COMPLIANCE WITH OTHER LAW.] The commissioner 
        shall take no action under this section unless the commissioner 
        determines that Rotary International, or one or more districts 
        of Rotary International, has complied with section 168.1293, 
        subdivision 2, paragraph (a).  Issuance and renewal of license 
        plates under this section are subject to section 168.1293, 
        subdivisions 3 to 6. 
           Sec. 25.  Minnesota Statutes 2002, section 168.54, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TRANSFER FEE.] A fee of $2 $3 is imposed upon 
        every transfer of ownership by the commissioner of public safety 
        of any motor vehicle for which a registration certificate has 
        heretofore been issued under this chapter, except vehicles sold 
        for the purposes of salvage or dismantling or permanent removal 
        from the state. 
           Sec. 26.  Minnesota Statutes 2002, section 168A.29, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AMOUNTS.] (a) The department shall be paid 
        the following fees: 
           (1) for filing an application for and the issuance of an 
        original certificate of title, the sum of $2 $3; 
           (2) for each security interest when first noted upon a 
        certificate of title, including the concurrent notation of any 
        assignment thereof and its subsequent release or satisfaction, 
        the sum of $2, except that no fee is due for a security interest 
        filed by a public authority under section 168A.05, subdivision 
        8; 
           (3) for the transfer of the interest of an owner and the 
        issuance of a new certificate of title, the sum of $2 $3; 
           (4) for each assignment of a security interest when first 
        noted on a certificate of title, unless noted concurrently with 
        the security interest, the sum of $1; 
           (5) for issuing a duplicate certificate of title, the sum 
        of $4.  
           (b) After June 30, 1994, in addition to each of the fees 
        required under paragraph (a), clauses (1) and (3), the 
        department shall be paid $3.50.  The additional fee collected 
        under this paragraph must be deposited in the special revenue 
        fund and credited to the public safety motor vehicle account 
        established in section 299A.70. 
           Sec. 27.  Minnesota Statutes 2002, section 169.14, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [SPEED ZONING IN SCHOOL ZONE; SURCHARGE.] (a) 
        Local authorities may establish a school speed limit within a 
        school zone of a public or nonpublic school upon the basis of an 
        engineering and traffic investigation as prescribed by the 
        commissioner of transportation.  The establishment of a school 
        speed limit on any trunk highway shall be with the consent of 
        the commissioner of transportation.  Such school speed limits 
        shall be in effect when children are present, going to or 
        leaving school during opening or closing hours or during school 
        recess periods.  The school speed limit shall not be lower than 
        15 miles per hour and shall not be more than 20 30 miles per 
        hour below the established speed limit on an affected street or 
        highway if the established speed limit is 40 miles per hour or 
        greater. 
           (b) The school speed limit shall be effective upon the 
        erection of appropriate signs designating the speed and 
        indicating the beginning and end of the reduced speed zone.  Any 
        speed in excess of such posted school speed limit is unlawful.  
        All such signs shall be erected by the local authorities on 
        those streets and highways under their respective jurisdictions 
        and by the commissioner of transportation on trunk highways. 
           (c) For the purpose of this subdivision, "school zone" 
        means that section of a street or highway which abuts the 
        grounds of a school where children have access to the street or 
        highway from the school property or where an established school 
        crossing is located provided the school advance sign prescribed 
        by the manual on uniform traffic control devices adopted by the 
        commissioner of transportation pursuant to section 169.06 is in 
        place.  All signs erected by local authorities to designate 
        speed limits in school zones shall conform to the manual on 
        uniform control devices. 
           (d) Notwithstanding section 609.0331 or 609.101 or other 
        law to the contrary, a person who violates a speed limit 
        established under this subdivision is assessed an additional 
        surcharge equal to the amount of the fine imposed for the 
        violation, but not less than $25. 
           Sec. 28.  Minnesota Statutes 2002, section 169.448, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESTRICTIONS ON APPEARANCE; MISDEMEANOR.] 
        (a) A bus that is not used as a school bus may not be operated 
        on a street or highway unless it is painted a color 
        significantly different than national school bus glossy yellow.  
           (b) A bus that is not used as a school bus or Head Start 
        bus may not be operated if it is equipped with school bus or 
        Head Start bus-related equipment and printing. 
           (c) A violation of this subdivision is a misdemeanor.  
           (d) This subdivision does not apply to a school bus owned 
        by or under contract to a school district operated as a charter 
        or leased bus.  
           (e) This subdivision does not apply to a school bus 
        operated by a licensed child care provider if: 
           (1) the stop arm is removed; 
           (2) the eight-light system is deactivated; 
           (3) the school bus is identified as a "child care bus" in 
        letters at least eight inches high on the front and rear top of 
        the bus; and 
           (4) the name, address, and telephone number of the owner or 
        operator of the bus is identified on each front door of the bus 
        in letters not less than three inches high; and 
           (5) the conditions under section 171.02, subdivision 2a, 
        paragraph (b), clauses (1) through (10), (12), and (14) have 
        been met. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003.  
           Sec. 29.  Minnesota Statutes 2002, section 169.791, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TERMS DEFINED.] (a) For purposes of this 
        section and sections 169.792 to 169.799 169.798, the following 
        terms have the meanings given. 
           (b) "Commissioner" means the commissioner of public safety. 
           (c) "District court administrator" or "court administrator" 
        means the district court administrator or a deputy district 
        court administrator of the district court that has jurisdiction 
        of a violation of this section.  
           (d) "Insurance identification card" means a card issued by 
        an obligor to an insured stating that security as required by 
        section 65B.48 has been provided for the insured's vehicle.  
           (e) "Law enforcement agency" means the law enforcement 
        agency that employed the peace officer who demanded proof of 
        insurance under this section or section 169.792.  
           (f) "Peace officer" or "officer" means an employee of a 
        political subdivision or state law enforcement agency, including 
        the Minnesota state patrol, who is licensed by the Minnesota 
        board of peace officer standards and training and is authorized 
        to make arrests for violations of traffic laws. 
           (g) "Proof of insurance" means an insurance identification 
        card, written statement, or insurance policy as defined by 
        section 65B.14, subdivision 2. 
           (h) "Vehicle" means a motor vehicle as defined in section 
        65B.43, subdivision 2, or a motorcycle as defined in section 
        65B.43, subdivision 13.  
           (i) "Written statement" means a written statement by a 
        licensed insurance agent stating the name and address of the 
        insured, the vehicle identification number of the insured's 
        vehicle, that a plan of reparation security as required by 
        section 65B.48 has been provided for the insured's vehicle, and 
        the dates of the coverage. 
           (j) The definitions in section 65B.43 apply to sections 
        169.792 to 169.799 169.798. 
           Sec. 30.  Minnesota Statutes 2002, section 169.796, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [SAMPLING TO VERIFY INSURANCE COVERAGE.] (a) The 
        commissioner of public safety shall implement a monthly sampling 
        program to verify insurance coverage.  The sample must annually 
        include at least two percent of all drivers who own motor 
        vehicles, as defined in section 168.011, licensed in the state, 
        one-half of whom during the previous year have been convicted of 
        at least one vehicle insurance law violation, have had a 
        driver's license revoked or suspended due to habitual violation 
        of traffic laws, have had no insurance in effect at the time of 
        a reportable crash, or have been convicted of an alcohol-related 
        motor vehicle offense.  No sample may be selected based on race, 
        religion, physical or mental disability, economic status, or 
        geographic location.  
           (b) The commissioner shall request each vehicle owner 
        included in the sample to furnish insurance coverage information 
        to the commissioner within 30 days.  The request must require 
        the owner to state whether or not all motor vehicles owned by 
        that person were insured on the verification date stated in the 
        commissioner's request.  The request may require, but is not 
        limited to, a signed statement by the owner that the information 
        is true and correct, the names and addresses of insurers, policy 
        numbers, and expiration or renewal dates of insurance coverage. 
           (c) The commissioner shall conduct a verification of the 
        response by transmitting necessary information to the insurance 
        companies named in the owner's response.  
           (d) The insurance companies shall electronically notify the 
        commissioner, within 30 days of the commissioner's request, of 
        any false statements regarding coverage.  
           (e) The commissioner shall suspend, without preliminary 
        hearing, the driver's license, if any, of a vehicle owner who 
        falsely claims coverage, who indicates that coverage was not in 
        effect at the time specified in the request, or who fails to 
        respond to the commissioner's request to furnish proof of 
        insurance.  The commissioner shall comply with the notice 
        requirement of section 171.18, subdivision 2.  
           (f) Before reinstatement of the driver's license, there 
        must be filed with the commissioner of public safety the written 
        certificate of an insurance carrier authorized to do business in 
        the state stating that security has been provided as required by 
        section 65B.48.  The commissioner of public safety may require 
        the certificate of insurance provided to satisfy this 
        subdivision to be certified by the insurance carrier for a 
        period not to exceed one year.  The commissioner of public 
        safety may also require a certificate of insurance to be filed 
        with respect to all vehicles required to be insured under 
        section 65B.48 and owned by any person whose driving privileges 
        have been suspended as provided in this section before 
        reinstating the person's driver's license. 
           Sec. 31.  Minnesota Statutes 2002, section 169.797, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [REGISTRATION REVOCATION AND LICENSE 
        SUSPENSION.] The commissioner of public safety shall revoke the 
        registration of any vehicle and may shall suspend the driver's 
        license of any operator, without preliminary hearing upon a 
        showing by department records, including accident reports 
        required to be submitted by section 169.09, or other sufficient 
        evidence that security required by section 65B.48 has not been 
        provided and maintained.  Before reinstatement of the 
        registration, there shall be filed with the commissioner of 
        public safety the written certificate of an insurance carrier 
        authorized to do business in the state stating that security has 
        been provided as required by section 65B.48.  The commissioner 
        of public safety may require the certificate of insurance 
        provided to satisfy this subdivision to be certified by the 
        insurance carrier to be noncancelable for a period not to exceed 
        one year.  The commissioner of public safety may also require a 
        certificate of insurance to be filed with respect to all 
        vehicles required to be insured under section 65B.48 and owned 
        by any person whose driving privileges have been suspended or 
        revoked as provided in this section before reinstating the 
        person's driver's license. 
           Sec. 32.  Minnesota Statutes 2002, section 169.798, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY.] The commissioner of public 
        safety shall have the power and perform the duties imposed 
        by this section and sections 65B.41 to 65B.71, this section, and 
        sections 169.797 and 169.799, and may adopt rules to implement 
        and provide effective administration of the provisions requiring 
        security and governing termination of security. 
           Sec. 33.  Minnesota Statutes 2002, section 169.798, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [ATTESTATION OF INSURANCE REQUIRED.] Every owner, 
        when applying for motor vehicle or motorcycle registration, 
        reregistration, or transfer of ownership, must attest that the 
        motor vehicle or motorcycle is covered by an insurance policy. 
           Sec. 34.  Minnesota Statutes 2002, section 169.826, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WINTER INCREASE AMOUNTS.] The limitations 
        provided in sections 169.822 to 169.829 are increased:  
           (1) by ten percent between the dates set by the 
        commissioner for each zone established by the commissioner based 
        on a freezing index model each winter, statewide;. 
           (2) by ten percent between the dates set by the 
        commissioner based on a freezing index model each winter, in the 
        zone bounded as follows:  beginning at Pigeon River in the 
        northeast corner of Minnesota; thence in a southwesterly 
        direction along the north shore of Lake Superior to the 
        northeastern city limits of Duluth; thence along the eastern and 
        southern city limits of Duluth to the junction with trunk 
        highway No. 210; thence westerly along trunk highway No. 210 to 
        the junction with trunk highway No. 10; thence northwesterly 
        along trunk highway No. 10 to the Minnesota-North Dakota border; 
        thence northerly along that border to the Minnesota-Canadian 
        Border; thence easterly along said Border to Lake Superior; and 
           (3) Subd. 1a.  [HARVEST SEASON INCREASE AMOUNT.] The 
        limitations provided in sections 169.822 to 169.829 are 
        increased by ten percent from the beginning of harvest to 
        November 30 each year for the movement of sugar beets, carrots, 
        and potatoes from the field of harvest to the point of the first 
        unloading.  Transfer of the product from a farm vehicle or small 
        farm trailer, within the meaning of chapter 168, to another 
        vehicle is not considered to be the first unloading.  The 
        commissioner shall not issue permits under this clause 
        subdivision if to do so will result in a loss of federal highway 
        funding to the state. 
           Sec. 35.  Minnesota Statutes 2002, section 169.826, is 
        amended by adding a subdivision to read: 
           Subd. 1b.  [NINE-TON COUNTY ROADS.] Despite the provisions 
        of subdivision 5 and sections 169.824, subdivision 2, paragraph 
        (a), clause (2), and 169.832, subdivision 11, a vehicle or 
        combination of vehicles with a gross vehicle weight up to 88,000 
        pounds may be operated on a nine-ton county road, consistent 
        with the increases allowed for vehicles operating on a ten-ton 
        road, during the time when the increases under subdivision 1 are 
        in effect in that zone. 
           Sec. 36.  Minnesota Statutes 2002, 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 sections 169.822 to 169.829, 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 (1) on routes subject to the provisions of 
        sections 169.822 to 169.829, the weight on an axle exceeds the 
        lawful gross weight prescribed by sections 169.822 to 169.829, 
        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 sections 169.822 to 169.829, by 4,000 
        pounds or more; or (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 sections 
        169.822 to 169.829; or (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), and 
        plus, if applicable, the weight allowance permitted under 
        section 169.826, then the driver is not required to unload under 
        paragraph (b). 
           Sec. 37.  Minnesota Statutes 2002, 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 169.826, subdivision 1, clause (3) 1a; 
           (4) special pulpwood vehicles described in section 169.863; 
           (5) motor vehicles bearing snowplow blades not exceeding 
        ten feet in width; and 
           (6) noncommercial transportation of a boat by the owner or 
        user of the boat. 
           (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 sections 169.822 to 169.829, 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 169.828, subdivision 2, 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. 38.  Minnesota Statutes 2002, section 171.02, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [EXCEPTIONS.] (a) Notwithstanding subdivision 2, 
        (1) a hazardous materials endorsement is not required to operate 
        a vehicle having a gross vehicle weight of 26,000 pounds or less 
        while carrying in bulk tanks a total of not more than 200 
        gallons of petroleum products and (2) a class C license or 
        hazardous materials endorsement is not required to operate a 
        farm vehicle as defined in Code of Federal Regulations, title 
        49, section 390.5, having a gross vehicle weight of 26,000 
        pounds or less while carrying in bulk tanks a total of not more 
        than 1,500 gallons of liquid fertilizer. 
           (b) Notwithstanding subdivision 2, paragraph (c), the 
        holder of a class D driver's license, without a school bus 
        endorsement, may operate a type A school bus described in 
        subdivision 2, paragraph (b), under the following conditions: 
           (1) The operator is an employee of the entity that owns, 
        leases, or contracts for the school bus and is not solely hired 
        to provide transportation services under this paragraph. 
           (2) The operator drives the school bus only from points of 
        origin to points of destination, not including home-to-school 
        trips to pick up or drop off students.  
           (3) The operator is prohibited from using the eight-light 
        system.  Violation of this clause is a misdemeanor. 
           (4) The operator's employer has adopted and implemented a 
        policy that provides for annual training and certification of 
        the operator in: 
           (i) safe operation of the type of school bus the operator 
        will be driving; 
           (ii) understanding student behavior, including issues 
        relating to students with disabilities; 
           (iii) encouraging orderly conduct of students on the bus 
        and handling incidents of misconduct appropriately; 
           (iv) knowing and understanding relevant laws, rules of the 
        road, and local school bus safety policies; 
           (v) handling emergency situations; and 
           (vi) safe loading and unloading of students. 
           (5) A background check or background investigation of the 
        operator has been conducted that meets the requirements under 
        section 122A.18, subdivision 8, or 123B.03 for teachers; section 
        144.057 or 245A.04 for day care employees; or section 171.321, 
        subdivision 3, for all other persons operating a type A school 
        bus under this paragraph. 
           (6) Operators shall submit to a physical examination as 
        required by section 171.321, subdivision 2. 
           (7) The operator's driver's license is verified annually by 
        the entity that owns, leases, or contracts for the school bus. 
           (8) A person who sustains a conviction, as defined under 
        section 609.02, of violating section 169A.25, 169A.26, 169A.27, 
        169A.31, 169A.51, or 169A.52, or a similar statute or ordinance 
        of another state is precluded from operating a school bus for 
        five years from the date of conviction. 
           (9) A person who has ever been convicted of a disqualifying 
        offense as defined in section 171.3215, subdivision 1, paragraph 
        (c), may not operate a school bus under this paragraph. 
           (10) A person who sustains a conviction, as defined under 
        section 609.02, of a fourth moving offense in violation of 
        chapter 169 is precluded from operating a school bus for one 
        year from the date of the last conviction. 
           (10) (11) Students riding the school bus must have training 
        required under section 123B.90, subdivision 2. 
           (11) (12) An operator must be trained in the proper use of 
        child safety restraints as set forth in the National Highway 
        Traffic Safety Administration's "Guideline for the Safe 
        Transportation of Pre-school Age Children in School Buses." 
           (12) (13) Annual certification of the requirements listed 
        in this paragraph must be maintained under separate file at the 
        business location for each operator licensed under this 
        paragraph and subdivision 2, paragraph (b), clause (5).  The 
        business manager, school board, governing body of a nonpublic 
        school, or any other entity that owns, leases, or contracts for 
        the school bus operating under this paragraph is responsible for 
        maintaining these files for inspection. 
           (13) (14) The school bus must bear a current certificate of 
        inspection issued under section 169.451. 
           (14) (15) The word "School" on the front and rear of the 
        bus must be covered by a sign that reads "Activities" when the 
        bus is being operated under authority of this paragraph.  
           [EFFECTIVE DATE.] This section is effective August 1, 2003. 
           Sec. 39.  Minnesota Statutes 2002, section 171.20, 
        subdivision 4, is amended to read: 
           Subd. 4.  [REINSTATEMENT FEE.] (a) Before the license is 
        reinstated, (1) a person whose driver's license has been 
        suspended under section 171.16, subdivision 2; 171.18, except 
        subdivision 1, clause (10); or 171.182, or who has been 
        disqualified from holding a commercial driver's license under 
        section 171.165, and (2) a person whose driver's license has 
        been suspended under section 171.186 and who is not exempt from 
        such a fee, must pay a fee of $20.  
           (b) Before the license is reinstated, a person whose 
        license has been suspended or revoked under sections 169.791 to 
        169.798 must pay a $20 reinstatement fee. 
           (c) When fees are collected by a licensing agent appointed 
        under section 171.061, a handling charge is imposed in the 
        amount specified under section 171.061, subdivision 4.  The 
        reinstatement fee and surcharge must be deposited in an approved 
        state depository as directed under section 171.061, subdivision 
        4.  
           (d) A suspension may be rescinded without fee for good 
        cause. 
           Sec. 40.  Minnesota Statutes 2002, section 171.29, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REINSTATEMENT FEES AND SURCHARGES, ALLOCATION.] 
        (a) A person whose driver's license has been revoked as provided 
        in subdivision 1, except under section 169A.52, 169A.54, or 
        609.21, shall pay a $30 fee before the driver's license is 
        reinstated. 
           (b) A person whose driver's license has been revoked as 
        provided in subdivision 1 under section 169A.52, 169A.54, or 
        609.21, shall pay a $250 fee plus a $40 surcharge before the 
        driver's license is reinstated.  Beginning July 1, 2002, the 
        surcharge is $145.  Beginning July 1, 2003, the surcharge is 
        $380 $430.  The $250 fee is to be credited as follows: 
           (1) Twenty percent must be credited to the trunk highway 
        fund. 
           (2) Sixty-seven percent must be credited to the general 
        fund. 
           (3) Eight percent must be credited to a separate account to 
        be known as the bureau of criminal apprehension account.  Money 
        in this account may be appropriated to the commissioner of 
        public safety and the appropriated amount must be apportioned 80 
        percent for laboratory costs and 20 percent for carrying out the 
        provisions of section 299C.065. 
           (4) Five percent must be credited to a separate account to 
        be known as the vehicle forfeiture account, which is created in 
        the special revenue fund.  The money in the account is annually 
        appropriated to the commissioner for costs of handling vehicle 
        forfeitures. 
           (c) The revenue from $50 of each surcharge must be credited 
        to a separate account to be known as the traumatic brain injury 
        and spinal cord injury account.  The money in the account is 
        annually appropriated to the commissioner of health to be used 
        as follows:  35 percent for a contract with a 83 percent for 
        contracts with a qualified community-based organization to 
        provide information, resources, and support to assist persons 
        with traumatic brain injury and their families to access 
        services, and 65 17 percent to maintain the traumatic brain 
        injury and spinal cord injury registry created in section 
        144.662.  For the purposes of this clause, a "qualified 
        community-based organization" is a private, not-for-profit 
        organization of consumers of traumatic brain injury services and 
        their family members.  The organization must be registered with 
        the United States Internal Revenue Service under section 
        501(c)(3) as a tax-exempt organization and must have as its 
        purposes:  
           (i) the promotion of public, family, survivor, and 
        professional awareness of the incidence and consequences of 
        traumatic brain injury; 
           (ii) the provision of a network of support for persons with 
        traumatic brain injury, their families, and friends; 
           (iii) the development and support of programs and services 
        to prevent traumatic brain injury; 
           (iv) the establishment of education programs for persons 
        with traumatic brain injury; and 
           (v) the empowerment of persons with traumatic brain injury 
        through participation in its governance. 
        No patient's name, identifying information, or identifiable 
        medical data will be disclosed to the organization without the 
        informed voluntary written consent of the patient or patient's 
        guardian or, if the patient is a minor, of the parent or 
        guardian of the patient. 
           (c) (d) The remainder of the surcharge must be credited to 
        a separate account to be known as the remote electronic 
        alcohol-monitoring program account.  The commissioner shall 
        transfer the balance of this account to the commissioner of 
        finance on a monthly basis for deposit in the general fund. 
           (d) (e) When these fees are collected by a licensing agent, 
        appointed under section 171.061, a handling charge is imposed in 
        the amount specified under section 171.061, subdivision 4.  The 
        reinstatement fees and surcharge must be deposited in an 
        approved state depository as directed under section 171.061, 
        subdivision 4. 
           Sec. 41.  Minnesota Statutes 2002, section 174.03, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [FORECAST OF REVENUES AND EXPENDITURES.] In 
        cooperation with the department of finance and as required by 
        section 16A.103, the commissioner shall prepare in February and 
        November of each year a forecast of highway user tax 
        distribution fund and trunk highway fund revenues and 
        expenditures.  The forecast must include an analysis of economic 
        information and the potential impact on highway user fund 
        revenues, historical growth rate information, and other 
        variables affecting revenue assumptions and forecasted future 
        growth rates.  The forecast must include an analysis of trunk 
        highway bonding and the necessary debt service payments, and 
        assumptions regarding federal transportation funds.  The 
        commissioner shall review the forecast information with the 
        chairs of the senate and house of representatives committees 
        with jurisdiction over finance, ways and means, and 
        transportation finance and with legislative fiscal staff no 
        later than two weeks before the forecast is released and shall 
        inform the chairs and staff of changes made from previous 
        forecasts. 
           Sec. 42.  Minnesota Statutes 2002, section 174.24, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A public transit 
        participation program is established to carry out the objectives 
        stated in section 174.21 by providing financial assistance from 
        the state, including the greater Minnesota transit fund 
        established in section 16A.88, to eligible recipients outside of 
        the metropolitan area.  
           Sec. 43.  Minnesota Statutes 2002, section 174.24, 
        subdivision 3b, is amended to read: 
           Subd. 3b.  [OPERATING ASSISTANCE.] (a) The commissioner 
        shall determine the total operating cost of any public transit 
        system receiving or applying for assistance in accordance with 
        generally accepted accounting principles.  To be eligible for 
        financial assistance, an applicant or recipient shall provide to 
        the commissioner all financial records and other information and 
        shall permit any inspection reasonably necessary to determine 
        total operating cost and correspondingly the amount of 
        assistance which that may be paid to the applicant or recipient.  
        Where more than one county or municipality contributes 
        assistance to the operation of a public transit system, the 
        commissioner shall identify one as lead agency for the purpose 
        of receiving money under this section.  
           (b) Prior to distributing operating assistance to eligible 
        recipients for any contract period, the commissioner shall place 
        all recipients into one of the following classifications:  
        urbanized area service, small urban area service, rural area 
        service, and elderly and handicapped service.  The commissioner 
        shall distribute funds under this section so that the percentage 
        of total operating cost paid by any recipient from local sources 
        will not exceed the percentage for that recipient's 
        classification, except as provided in an undue hardship case.  
        The percentages must be:  for urbanized area service and small 
        urban area service, 40 20 percent; for rural area service, 35 15 
        percent; and for elderly and handicapped service, 35 15 percent. 
        The remainder of the total operating cost will be paid from 
        state funds less any assistance received by the recipient from 
        any federal source.  For purposes of this subdivision "local 
        sources" means payments under section 174.242 plus all local 
        sources of funds and includes all operating revenue, tax levies, 
        and contributions from public funds, except that the 
        commissioner may exclude from the total assistance contract 
        revenues derived from operations the cost of which is excluded 
        from the computation of total operating cost.  Total operating 
        costs of the Duluth transit authority or a successor agency 
        shall does not include costs related to the Superior, Wisconsin 
        service contract and the independent school district No. 709 
        service contract.  For calendar years 2004 and 2005, to enable 
        public transit systems to meet the provisions of this section 
        the commissioner may adjust payments of financial assistance to 
        recipients that were under a contract with the department on 
        January 1, 2003.  Payments to such a recipient in calendar years 
        2004 and 2005 from the greater Minnesota transit fund, may not 
        be less than the payment to the recipient from that fund in 
        calendar year 2003, except for reductions made necessary by 
        reductions in base funding for those years. 
           (c) If a recipient informs the commissioner in writing 
        after the establishment of these percentages but prior to the 
        distribution of financial assistance for any year that paying 
        its designated percentage of total operating cost from local 
        sources will cause undue hardship, the commissioner may reduce 
        the percentage to be paid from local sources by the recipient 
        and increase the percentage to be paid from local sources by one 
        or more other recipients inside or outside the classification, 
        provided that no recipient shall have its.  However, the 
        commissioner may not reduce or increase any recipient's 
        percentage thus reduced or increased under this paragraph for 
        more than two years successively.  If for any year the funds 
        appropriated to the commissioner to carry out the purposes of 
        this section are insufficient to allow the commissioner to pay 
        the state share of total operating cost as provided in this 
        paragraph, the commissioner shall reduce the state share in each 
        classification to the extent necessary. 
           Sec. 44.  Minnesota Statutes 2002, section 174.24, 
        subdivision 5, is amended to read: 
           Subd. 5.  [METHOD OF PAYMENT, OPERATING ASSISTANCE.] 
        Payments for operating assistance under this section shall must 
        be made in the following manner:  
           (a) For payments made from the general fund: 
           (1) 50 percent of the total contract amount in the first 
        month of operation; 
           (2) 40 percent of the total contract amount in the seventh 
        month of operation; 
           (3) 9 percent of the total contract amount in the 12th 
        month of operation; and 
           (4) 1 percent of the total contract amount after the final 
        audit.  
           (b) For payments made from the greater Minnesota transit 
        fund: 
           (1) 50 percent of the total contract amount in the seventh 
        month of operation; and 
           (2) 50 percent of the total contract amount in the 11th 
        month of operation. 
           Sec. 45.  Minnesota Statutes 2002, section 174.55, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COMPOSITION.] The major transportation projects 
        commission is composed of the governor or the governor's 
        designee; four citizen members appointed by the governor and 
        serving at the pleasure of the governor; seven senators 
        appointed by the subcommittee on committees of the committee on 
        rules and administration, three of whom must not be members of 
        the senate majority party; and seven members of the house of 
        representatives appointed by the speaker, three of whom must not 
        be members of the house majority party.  The commissioner of 
        transportation shall serve as a nonvoting member unless the 
        commissioner is the governor's designee.  The commission shall 
        elect a chair from among its members.  Nongovernment members of 
        the commission shall receive compensation in accordance with 
        section 15.059, subdivision 3.  The commission expires June 30, 
        2003. 
           Sec. 46.  Minnesota Statutes 2002, section 174.64, 
        subdivision 4, is amended to read: 
           Subd. 4.  [HEARINGS; NOTICE.] With respect to those matters 
        within the commissioner's jurisdiction, the commissioner shall 
        receive, hear, and determine all petitions filed with the 
        commissioner in accordance with the procedures established by 
        law and may hold hearings and make determinations upon the 
        commissioner's own motion to the same extent, and in every 
        instance, in which the commissioner may do so upon petition.  
        Upon receiving petitions a petition filed pursuant to sections 
        section 221.121, subdivision 1, or 221.151, and 221.55, the 
        commissioner shall give notice of the filing of the petition to 
        representatives of associations or other interested groups or 
        persons who have registered their names with the commissioner 
        for that purpose and to whomever the commissioner deems to be 
        interested in the petition.  The commissioner may grant or deny 
        the request of the petition 30 days after notice of the filing 
        has been fully given.  If the commissioner receives a written 
        objection and notice of intent to appear at a hearing to object 
        to the petition from any person within 20 days of the notice 
        having been fully given, the request of the petition must be 
        granted or denied only after a contested case hearing has been 
        conducted on the petition, unless the objection is withdrawn 
        before the hearing.  The commissioner may elect to hold a 
        contested case hearing if no objections to the petition are 
        received.  If a timely objection is not received, or if received 
        and withdrawn, and the request of the petition is denied without 
        hearing, the petitioner may request within 30 days of receiving 
        the notice of denial, and must be granted, a contested case 
        hearing on the petition. 
           Sec. 47.  Minnesota Statutes 2002, section 275.71, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PROPERTY TAX LEVY LIMIT.] Notwithstanding any 
        other provision of a municipal charter which limits ad valorem 
        taxes to a lesser amount, or which would require a separate 
        voter approval for any increase, for taxes levied in 2001 and 
        2002, the property tax levy limit for a local governmental unit 
        is equal to its adjusted levy limit base determined under 
        subdivision 4 plus any additional levy authorized under section 
        275.73, which is levied against net tax capacity, reduced by the 
        sum of (i) the total amount of aids and reimbursements that the 
        local governmental unit is certified to receive under sections 
        477A.011 to 477A.014, except for the increases in city aid bases 
        in calendar year 2002 under section 477A.011, subdivision 36, 
        paragraphs (n), (p), and (q), (ii) homestead and agricultural 
        aids it is certified to receive under section 273.1398, (iii) 
        taconite aids under sections 298.28 and 298.282 including any 
        aid which was required to be placed in a special fund for 
        expenditure in the next succeeding year, and (iv) low-income 
        housing aid under sections 477A.06 and 477A.065, and (v) 
        property tax replacement aids under section 174.242. 
           Sec. 48.  Minnesota Statutes 2002, section 297B.09, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEPOSIT OF REVENUES.] (a) Money collected 
        and received under this chapter must be deposited as provided in 
        this subdivision.  
           (b) From July 1, 2001, to June 30, 2002, 30.86 percent of 
        the money collected and received must be deposited in the 
        highway user tax distribution fund, and the remaining money must 
        be deposited in the general fund.  
           (c) On and after From July 1, 2002, to June 30, 2003, 32 
        percent of the money collected and received must be deposited in 
        the highway user tax distribution fund, 20.5 percent must be 
        deposited in the metropolitan area transit fund under section 
        16A.88, and 1.25 percent must be deposited in the greater 
        Minnesota transit fund under section 16A.88.  In fiscal year 
        2004 and thereafter, two percent of the money collected and 
        received must be deposited in the metropolitan area transit 
        appropriation account under section 16A.88.  The remaining money 
        must be deposited in the general fund. 
           (c) From July 1, 2003, to June 30, 2007, 30 percent of the 
        money collected and received must be deposited in the highway 
        user tax distribution fund, 21.5 percent must be deposited in 
        the metropolitan area transit fund under section 16A.88, 1.43 
        percent must be deposited in the greater Minnesota transit fund 
        under section 16A.88, 0.65 percent must be deposited in the 
        county state-aid highway fund, and 0.17 percent must be 
        deposited in the municipal state-aid street fund.  The remaining 
        money must be deposited in the general fund. 
           (d) On and after July 1, 2007, 32 percent of the money 
        collected and received must be deposited in the highway user tax 
        distribution fund, 20.5 percent must be deposited in the 
        metropolitan area transit fund under section 16A.88, and 1.25 
        percent must be deposited in the greater Minnesota transit fund 
        under section 16A.88.  The remaining money must be deposited in 
        the general fund. 
           Sec. 49.  Minnesota Statutes 2002, section 299A.465, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PUBLIC EMPLOYER REIMBURSEMENT.] A public 
        employer subject to this section may annually apply by August 1 
        for the preceding fiscal year to the commissioner of public 
        safety for reimbursement to help defray a portion of its costs 
        of complying with this section.  The commissioner shall provide 
        reimbursement an equal pro rata share to the public employer out 
        of the public safety officer's benefit account based on the 
        availability of funds for each eligible officer, firefighter, 
        and qualifying dependents.  Individual shares must not exceed 
        the actual costs of providing coverage under this section by a 
        public employer. 
           Sec. 50.  [299A.77] [ALCOHOL ENFORCEMENT ACCOUNT.] 
           (a) An alcohol enforcement account is created in the 
        special revenue fund, consisting of money credited to the 
        account by law.  Money in the account may be appropriated by law 
        for (1) costs of the alcohol and gambling division related to 
        administration and enforcement of sections 340A.403, subdivision 
        4; 340A.414, subdivision 1a; and 340A.504, subdivision 7; and 
        (2) costs of the state patrol. 
           (b) The commissioner shall transfer from the account to the 
        trunk highway fund $3,500,000 in fiscal year 2004 and $3,700,000 
        in fiscal year 2005, or so much thereof as is necessary to pay 
        costs of adding state patrol positions. 
           Sec. 51.  [299A.80] [ADMINISTRATIVE POWERS AND PENALTIES; 
        GENERAL.] 
           Subdivision 1.  [DEFINITIONS.] (a) For purposes of sections 
        299A.80 to 299A.802, the terms defined in this subdivision have 
        the meanings given them. 
           (b) "Administrative agent" means a person or entity 
        licensed by or granted authority by the commissioner of public 
        safety under: 
           (1) section 168.33 as a deputy registrar; 
           (2) section 168C.11 as a deputy registrar of bicycles; or 
           (3) section 171.061 as a driver's license agent. 
           (c) "Other authority" means licenses, orders, stipulation 
        agreements, settlements, or compliance agreements adopted or 
        issued by the commissioner of public safety. 
           (d) "Commissioner" means the commissioner of public safety. 
           (e) "License" means a license, permit, registration, 
        appointment, or certificate issued or granted to an 
        administrative agent by the commissioner of public safety. 
           Subd. 2.  [APPLICABILITY.] Sections 299A.80 to 299A.802 
        apply to administrative agents licensed by or subject to other 
        authority of the commissioner. 
           Subd. 3.  [CUMULATIVE REMEDY.] The authority of the 
        commissioner to issue a corrective order or assess an 
        administrative penalty under sections 299A.80 to 299A.802 is in 
        addition to other remedies available under statutory or common 
        law, except that the state may not seek a civil penalty under 
        any other law for a violation covered by an administrative 
        penalty order.  The payment of a penalty does not preclude the 
        use of other enforcement provisions, under which civil fines are 
        not assessed, in connection with the violation for which the 
        penalty was assessed. 
           Subd. 4.  [ACCESS TO INFORMATION AND PROPERTY.] The 
        commissioner, an employee, or an agent authorized by the 
        commissioner, upon presentation of credentials, may: 
           (1) examine and copy any books, papers, records, memoranda, 
        or data of an administrative agent; and 
           (2) enter upon any property where an administrative agent 
        conducts its place of business to take actions authorized under 
        statute, rule, or other authority, including (i) obtaining 
        information from an administrative agent who has a duty to 
        provide information under statute, rule, or other authority, (ii)
        taking steps to remedy violations, or (iii) conducting surveys 
        or investigations. 
           Subd. 5.  [FALSE INFORMATION.] (a) An administrative agent 
        may not: 
           (1) make a false material statement, representation, or 
        certification in a required document; 
           (2) omit material information from a required document; or 
           (3) alter, conceal, or fail to file or maintain a required 
        document. 
           (b) In this section, "required document" means a notice, 
        application, record, report, plan, or other document required 
        under statute, rule, or other authority. 
           Subd. 6.  [ENFORCEMENT.] (a) The attorney general may 
        proceed on behalf of the state to enforce administrative 
        penalties that are due and payable under section 299A.802 in any 
        manner provided by law for the collection of debts. 
           (b) The attorney general may petition the district court to 
        file a final administrative penalty order as an order of the 
        court.  At any court hearing to enforce a final administrative 
        penalty order, the only issues the parties may contest are 
        procedural and notice issues.  Once entered, the administrative 
        penalty order may be enforced in the same manner as a final 
        judgment of the district court.  This paragraph does not 
        preclude district court review of the merits of an 
        administrative penalty order if the order is appealed by the 
        administrative agent under section 299A.802, subdivision 5. 
           (c) If an administrative agent fails to pay an 
        administrative penalty, the attorney general may bring a civil 
        action in district court seeking payment of the penalty, 
        injunctive relief, or other appropriate relief including 
        monetary damages, attorney fees, costs, and interest. 
           Subd. 7.  [RECOVERY OF REASONABLE COSTS AND ATTORNEY 
        FEES.] (a) In any judicial action brought by the attorney 
        general for civil penalties, injunctive relief, or an action to 
        compel performance pursuant to this section, if the state 
        finally prevails, and if the proven violation was willful, the 
        state, in addition to other penalties provided by law, may be 
        allowed an amount determined by the court to be the reasonable 
        value of all or part of the costs and attorney fees incurred by 
        the state or the prevailing party.  In determining the amount of 
        the reasonable costs and attorney fees to be allowed, the court 
        must give consideration to the economic circumstances of the 
        defendant. 
           (b) However, if a defendant prevails, the court may award 
        the reasonable value of all or part of the reasonable costs and 
        attorney fees incurred by the defendant. 
           Subd. 8.  [EDUCATION AND COMPLIANCE ACCOUNT; MONEY 
        ALLOCATED.] An education and compliance account is created for 
        the deposit of administrative penalty order receipts.  Of the 
        funds deposited in this account, $5,000 each year is 
        appropriated to the commissioner for education and compliance 
        activities related to the regulated parties affected by this 
        chapter.  At the end of each biennium, all money not expended 
        lapses to the general fund. 
           Subd. 9.  [PLAN FOR USING ADMINISTRATIVE PENALTIES AND 
        CEASE AND DESIST AUTHORITY.] The commissioner shall prepare a 
        plan for using the administrative penalty order and cease and 
        desist authority in this section.  The commissioner shall 
        provide a 30-day period for public comment on the plan.  The 
        plan must be finalized by July 1, 2004, and may be modified as 
        necessary upon subsequent notice and opportunity for comment. 
           Sec. 52.  [299A.801] [CORRECTIVE ORDERS AND INJUNCTIONS.] 
           Subdivision 1.  [CORRECTIVE ORDERS.] (a) Before seeking an 
        administrative penalty order under section 299A.802, the 
        commissioner must issue a corrective order that requires the 
        administrative agent to correct the violation of statute, rule, 
        or other authority.  The corrective order must state the 
        deficiencies that constitute the violation of the specific 
        statute, rule, or other authority, and the time by which the 
        violation must be corrected.  In addition to service by 
        certified mail on the administrative agent, a copy of the 
        corrective order must be given to the county auditor in the 
        county where the administrative agent is located.  
           (b) The administrative agent to whom the corrective order 
        was issued shall provide information to the commissioner, by the 
        due date stated in the corrective order, demonstrating that the 
        violation has been corrected or that the administrative agent 
        has developed a corrective plan acceptable to the commissioner.  
        The commissioner must determine whether the violation has been 
        corrected and notify the administrative agent subject to the 
        order of the commissioner's determination. 
           (c) If the administrative agent believes that the 
        information contained in the commissioner's corrective order is 
        in error, the administrative agent may ask the commissioner to 
        reconsider the parts of the corrective order that are alleged to 
        be in error.  The request must: 
           (1) be in writing; 
           (2) be delivered to the commissioner by certified mail 
        within seven calendar days after receipt of the corrective 
        order; 
           (3) specify which parts of the corrective order are alleged 
        to be in error and explain why they are in error; and 
           (4) provide documentation to support the allegation of 
        error. 
           (d) The commissioner shall respond to requests made under 
        paragraph (c) within 15 calendar days after receiving a 
        request.  A request for reconsideration does not stay the 
        corrective order; however, after reviewing the request for 
        reconsideration, the commissioner may provide additional time to 
        comply with the order if necessary.  The commissioner's 
        disposition of a request for reconsideration of a corrective 
        order is final. 
           Subd. 2.  [CEASE AND DESIST ORDER.] The commissioner, or an 
        employee of the department designated by the commissioner, may 
        issue an order to cease an activity otherwise authorized by 
        statute, rule, or other authority if continuation of the 
        activity would result in an immediate risk to public safety.  A 
        cease and desist order issued under this subdivision is 
        effective for a maximum of 72 hours.  In conjunction with 
        issuing the cease and desist order, the commissioner may post a 
        sign to cease an activity until the cease and desist order is 
        lifted and the sign is removed by the commissioner.  To restrain 
        activities for a period beyond 72 hours, the commissioner must 
        seek an injunction or take other administrative action 
        authorized by law.  The issuance of a cease and desist order 
        does not preclude the commissioner from pursuing any other 
        enforcement action available to the commissioner. 
           Subd. 3.  [ACTION FOR INJUNCTIVE RELIEF.] In addition to 
        any other remedy provided by law, the commissioner may bring an 
        action for injunctive relief in the district court in Ramsey 
        county or, at the commissioner's discretion, in the district 
        court in the county in which a violation of a statute, rule, or 
        other authority has occurred to enjoin the violation. 
           Sec. 53.  [299A.802] [ADMINISTRATIVE PENALTY ORDERS.] 
           Subdivision 1.  [GENERAL.] The commissioner may issue an 
        administrative penalty order for a violation of statute, rule, 
        or other authority if an administrative agent has failed to 
        comply with a corrective order issued under section 299A.801 
        related to that violation.  The maximum amount of an 
        administrative penalty order is $10,000 for each administrative 
        agent for all violations identified in an inspection or review 
        of compliance.  In addition to service by certified mail on the 
        administrative agent, a copy of the administrative penalty order 
        must be given to the county auditor in the county where the 
        administrative agent is located.  
           Subd. 2.  [AMOUNT OF PENALTY; CONSIDERATIONS.] (a) In 
        determining the amount of a penalty to be assessed under this 
        section, the commissioner may consider: 
           (1) the willfulness of the violation; 
           (2) the gravity of the violation, including damage to 
        consumers or the state; 
           (3) the history of past violations; 
           (4) the number of violations; 
           (5) the economic benefit gained by the administrative agent 
        by allowing or committing the violation; and 
           (6) other factors as justice may require, if the 
        commissioner specifically identifies the additional factors in 
        the commissioner's order. 
           (b) If an administrative agent violates a corrective order 
        after a violation of a previous corrective order, the 
        commissioner, in determining the amount of a penalty, must 
        consider the factors in paragraph (a) and the following factors: 
           (1) similarity of the most recent previous violation of a 
        corrective order and the violation to be penalized; 
           (2) time elapsed since the last violation of a corrective 
        order; 
           (3) number of previous violations; and 
           (4) response of the administrative agent to the most recent 
        previous violation identified. 
           Subd. 3.  [CONTENTS OF ORDER.] An administrative penalty 
        order under this section must include: 
           (1) a concise statement of the facts alleged to constitute 
        a violation; 
           (2) a reference to the portion of the statute, rule, 
        variance, order, or stipulation agreement or the term or 
        condition of a permit that has been violated; 
           (3) a description of the violation of the corrective order 
        that forms the basis for issuance of the administrative penalty 
        order; 
           (4) a statement of the amount of the administrative penalty 
        to be imposed and the factors upon which the penalty is based; 
        and 
           (5) a statement of the administrative agent's right to 
        review and appeal of the administrative penalty order. 
           Subd. 4.  [DUE DATE.] (a) Unless the administrative agent 
        requests review of the administrative penalty order under 
        subdivision 5 before the penalty is due, the penalty in the 
        order is due and payable on the 31st day after the 
        administrative penalty order was received, if the administrative 
        agent subject to the order fails to provide information to the 
        commissioner showing that the violation has been corrected or 
        that appropriate steps have been taken toward correcting the 
        violation.  These requirements may be waived or extended by the 
        commissioner.  
           (b) Interest at the rate established in section 549.09 
        begins to accrue on penalties under this subdivision on the 31st 
        day after the order with the penalty was received, unless waived 
        by the commissioner. 
           Subd. 5.  [EXPEDITED ADMINISTRATIVE HEARING.] (a) Within 30 
        days after receiving an administrative penalty order, the 
        administrative agent subject to an order under this section may 
        request an expedited hearing, using the procedures of Minnesota 
        Rules, parts 1400.8510 to 1400.8612, or their successor rules, 
        to review the commissioner's action.  The hearing request must 
        specifically state the reasons for seeking review of the 
        administrative penalty order.  The administrative agent to whom 
        the administrative penalty order is directed and the 
        commissioner are the parties to the expedited hearing.  At least 
        15 days before the hearing, the commissioner shall notify the 
        administrative agent to whom the administrative penalty order is 
        directed of the time and place of the hearing.  The expedited 
        hearing must be held within 30 days after a request for hearing 
        has been filed with the commissioner unless the parties agree to 
        a later date. 
           (b) All written arguments must be submitted within ten days 
        following the close of the hearing.  The hearing must be 
        conducted under Minnesota Rules, parts 1400.8510 to 1400.8612, 
        or their successor rules, as modified by this subdivision.  The 
        office of administrative hearings, in consultation with the 
        agency, may adopt rules specifically applicable to cases under 
        this section. 
           (c) Within 30 days following the close of the record, the 
        administrative law judge shall issue a report making 
        recommendations about the commissioner's action to the 
        commissioner.  The administrative law judge may not recommend a 
        change in the amount of the proposed administrative penalty 
        unless the administrative law judge determines that, based on 
        the factors in subdivision 1, the amount of the administrative 
        penalty is unreasonable.  
           (d) If the administrative law judge makes a finding that 
        the hearing was requested solely for purposes of delay or that 
        the hearing request was frivolous, the commissioner may add to 
        the amount of the administrative penalty the costs charged to 
        the agency by the office of administrative hearings for the 
        hearing. 
           (e) If a hearing has been held, the commissioner may not 
        issue a final order until at least five days after receipt of 
        the report of the administrative law judge.  Within those five 
        days, the administrative agent to whom an administrative penalty 
        order is issued may comment to the commissioner on the 
        recommendations and the commissioner shall consider the 
        comments.  The final administrative penalty order may be 
        appealed to the district court for a de novo review of the order.
           (f) If a hearing has been held and a final administrative 
        penalty order issued by the commissioner, the administrative 
        penalty must be paid by 30 days after the date the final order 
        is received unless it is appealed to the district court.  If an 
        appeal is not taken or the administrative penalty order is 
        upheld on appeal, the amount due is the administrative penalty, 
        together with interest accruing from 31 days after the original 
        order was received, at the rate established in section 549.09. 
           Subd. 6.  [MEDIATION.] In addition to review under 
        subdivision 5, the commissioner may enter into mediation 
        concerning an order issued under this section if the 
        commissioner and the administrative agent to whom the order is 
        issued both agree to mediation. 
           Sec. 54.  Minnesota Statutes 2002, section 299E.01, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [VEHICLE TOWING.] Towing policy and practice for 
        vehicles in public parking spaces within the capitol complex 
        must conform to provisions of section 169.041. 
           Sec. 55.  Minnesota Statutes 2002, section 299E.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXPIRATION AND COMPENSATION.] Notwithstanding 
        section 15.059, The oversight committee does not expire expires 
        June 30, 2004.  Committee members may not receive compensation 
        for serving, but may receive expense reimbursements as provided 
        in section 15.059. 
           Sec. 56.  [331A.12] [WEB SITE PUBLICATION OF LOCAL 
        TRANSPORTATION RFP.] 
           Subdivision 1.  [DEFINITIONS.] (a) The terms defined in 
        this subdivision and section 331A.01 apply to this section. 
           (b) "Web site" means a specific, addressable location 
        provided on a server connected to the Internet and hosting World 
        Wide Web pages and other files that are generally accessible on 
        the Internet all or most of the day. 
           Subd. 2.  [DESIGNATION.] At the meeting of the governing 
        body of the local public corporation at which the governing body 
        must designate its official newspaper for the year, the 
        governing body may designate in the same manner publication of 
        transportation projects on the local public corporation's Web 
        site.  Publication on the Web site may be used in place of or in 
        addition to any other required form of publication.  Each year 
        after designating publication on the Web site for transportation 
        projects, the local public corporation must publish in a 
        qualified newspaper in the jurisdiction and on the Web site, 
        notice that the local public corporation will publish any 
        advertisements for bids on its Web site. 
           Subd. 3.  [FORM, TIME FOR PUBLICATION SAME.] A local public 
        corporation that publishes on its Web site under this section 
        must post the information in substantially the same format and 
        for the same period of time as required for publication in an 
        official newspaper or another other print publication. 
           Subd. 4.  [RECORD RETENTION.] A local public corporation 
        that publishes notice on its Web site under this section must 
        ensure that a permanent record of publication is maintained in a 
        form accessible by the public. 
           Sec. 57.  Minnesota Statutes 2002, section 340A.403, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [NOTICE TO COMMISSIONER.] Within ten days of the 
        issuance of a license under this section, a municipality shall 
        inform the commissioner, on a form the commissioner prescribes, 
        of the licensee's name and address and trade name, the effective 
        date and expiration date of the license, and any other 
        information on the license the commissioner requires. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 58.  Minnesota Statutes 2002, section 340A.414, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [ADDITIONAL AUTHORIZATION.] A holder of a 
        consumption and display permit under this section who wishes to 
        allow the consumption and display of intoxicating liquor between 
        the hours of 1:00 a.m. and 2:00 a.m. must obtain authorization 
        to do so from the commissioner.  The authorization may be 
        provided in a document issued to the permit holder by the 
        commissioner, or by a notation on the permit holder's permit.  
        Authorizations are valid for one year from the date of 
        issuance.  The annual fee for obtaining authorization is $200.  
        The commissioner shall deposit all fees received under this 
        subdivision in the alcohol enforcement account in the special 
        revenue fund.  A person who holds a consumption and display 
        permit and who also holds a license to sell alcoholic beverages 
        at on-sale at the same location is not required to obtain an 
        authorization under this subdivision. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 59.  Minnesota Statutes 2002, section 340A.504, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [SALES AFTER 1:00 A.M.; PERMIT FEE.] (a) No 
        licensee may sell intoxicating liquor or 3.2 percent malt liquor 
        on-sale between the hours of 1:00 a.m. and 2:00 a.m. unless the 
        licensee has obtained a permit from the commissioner.  
        Application for the permit must be on a form the commissioner 
        prescribes.  Permits are effective for one year from date of 
        issuance.  For retailers of intoxicating liquor, the fee for the 
        permit is based on the licensee's gross receipts from on-sales 
        of alcoholic beverages in the 12 months prior to the month in 
        which the permit is issued, and is at the following rates: 
           (1) up to $100,000 in gross receipts, $200; 
           (2) over $100,000 but not over $500,000 in gross receipts, 
        $500; and 
           (3) over $500,000 in gross receipts, $600. 
        For a licensed retailer of intoxicating liquor who did not sell 
        intoxicating liquor at on-sale for a full 12 months prior to the 
        month in which the permit is issued, the fee is $200.  For a 
        retailer of 3.2 percent malt liquor, the fee is $200. 
           (b) The commissioner shall deposit all permit fees received 
        under this subdivision in the alcohol enforcement account in the 
        special revenue fund. 
           (c) Notwithstanding any law to the contrary, the 
        commissioner of revenue may furnish to the commissioner the 
        information necessary to administer and enforce this subdivision.
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 60.  [414.038] [EFFECT OF ANNEXATION OF TOWNSHIP 
        ROADS.] 
           Whenever a municipality annexes property abutting one side 
        of a township road, the segment of road abutting the annexed 
        property must be treated as a line road and is subject to 
        section 164.14.  Whenever a municipality annexes the property on 
        both sides of a township road, that portion of road abutting the 
        annexed property ceases to be a town road and becomes the 
        obligation of the annexing municipality.  This section does not 
        prohibit the annexing municipality from contracting with the 
        township for continued maintenance of the road.  Any portion of 
        a township road that ceases to be a township road pursuant to 
        this section may still be counted as a township road for the 
        road-and-bridge account revenues for the year in which the 
        annexation occurs. 
           Sec. 61.  [414.039] [EFFECT OF ANNEXATION ON EASEMENTS.] 
           If a municipality annexes property in which the affected 
        township holds any easement for the benefit of the public, the 
        township's easement interest continues unless otherwise agreed 
        to by the township.  
           Sec. 62.  Laws 1999, chapter 238, article 1, section 2, 
        subdivision 2, is amended to read: 
        Subd. 2.  Aeronautics                 19,327,000     19,410,000
                      Summary by Fund
        Airports            19,266,000     19,349,000
        General                 50,000         50,000
        Trunk Highway           11,000         11,000
        Except as otherwise provided, the 
        appropriations in this subdivision are 
        from the state airports fund. 
        The amounts that may be spent from this 
        appropriation for each activity are as 
        follows:  
        (a) Airport Development and Assistance 
              2000           2001
            13,948,000     13,948,000
        $12,846,000 the first year and 
        $12,846,000 the second year are for 
        navigational aids, construction grants, 
        and maintenance grants.  If the 
        appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available for it. 
        These appropriations must be spent in 
        accordance with Minnesota Statutes, 
        section 360.305, subdivision 4. 
        Notwithstanding Minnesota Statutes, 
        section 16A.28, subdivision 6, funds 
        are available for five years after 
        appropriation. 
        (b) Aviation Support 
             5,247,000      5,329,000
        $65,000 the first year and $65,000 the 
        second year are for the civil air 
        patrol. 
        (c) Air Transportation Services 
               132,000        133,000 
                      Summary by Fund
        Airports                 71,000         72,000
        General                  50,000         50,000
        Trunk Highway            11,000         11,000
           Sec. 63.  Laws 2000, chapter 433, section 4, is amended to 
        read: 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective the day following final 
        enactment and are repealed June 1, 2003. 
           Sec. 64.  Laws 2001, chapter 97, section 5, is amended to 
        read: 
           Sec. 5.  [EFFECTIVE DATE; EXPIRATION.] 
           (a) Sections 1 to 4 are effective July 1, 2001. 
           (b) The amendments in sections 3 and 4 to Minnesota 
        Statutes, section 171.02, expire July 1, 2003. 
           (c) The amendment in section 1 to Minnesota Statutes, 
        section 169.01, subdivision 75, expires July 1, 2003.  
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 65.  Laws 2001, First Special Session chapter 8, 
        article 1, section 2, subdivision 2, is amended to read: 
        Subd. 2.  Aeronautics                 20,748,000     20,489,000
                      Summary by Fund
        Airports            20,687,000     20,428,000
        General                 50,000         50,000
        Trunk Highway           11,000         11,000
        Except as otherwise provided, the 
        appropriations in this subdivision are 
        from the state airports fund. 
        The amounts that may be spent from this 
        appropriation for each activity are as 
        follows:  
        (a) Airport Development and Assistance 
            14,298,000     14,298,000
        These appropriations must be spent 
        according to Minnesota Statutes, 
        section 360.305, subdivision 4. 
        If the appropriation for either year is 
        insufficient, the appropriation for the 
        other year is available for it. 
        Notwithstanding Minnesota Statutes, 
        section 16A.28, subdivision 6, funds 
        are available for five years after 
        appropriation. 
        (b) Aviation Support 
             6,315,000      6,053,000
        $65,000 the first year and $65,000 the 
        second year are for the civil air 
        patrol. 
        $600,000 each year is for GPS 
        navigation systems.  Of this amount, 
        $250,000 each year adds to the agency's 
        budget base. 
        $400,000 the first year and $50,000 the 
        second year are for the development of 
        on-line aircraft registration 
        capabilities. 
        (c) Air Transportation Services 
               135,000        138,000 
                      Summary by Fund
        Airports                 74,000         77,000
        General                  50,000         50,000
        Trunk Highway            11,000         11,000
        The commissioner shall take all 
        feasible actions to seek a waiver from 
        the appropriate federal authorities 
        that would allow the commissioner to 
        sell the airplane described in Laws 
        1997, chapter 159, article 1, section 
        2, subdivision 2, clause (c).  Any 
        proceeds from the sale of the airplane 
        must be deposited in the general fund. 
           Sec. 66.  [TRANSFER FROM LOAN FUND.] 
           The commissioner of finance shall transfer to the general 
        fund $8,200,000 of the money appropriated to the transportation 
        revolving loan fund under Laws 2000, chapter 479, article 1, 
        section 6, subdivision 2.  This transfer must be made at the 
        rate of $4,100,000 each year of the 2004-2005 biennium. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 67.  [REST AREA PROGRAM; REPORT.] 
           The commissioner of transportation shall report to the 
        chairs of the legislative committees with jurisdiction over 
        transportation policy and finance by January 30, 2004, on the 
        status of the department's highway rest area program.  The 
        report must include: 
           (1) adequacy of funding for the program; 
           (2) all rest area closings and hours of service reductions 
        implemented and planned for the 2004-05 biennium; 
           (3) steps that the commissioner has taken or plans to make 
        to allow leasing of rest areas to private entities or operation 
        of rest areas by private entities, including provisions that the 
        commissioner has made or intends to make to promote the 
        employment of needy elderly persons at rest areas and preserve 
        contracts under Minnesota Statutes, section 248.07. 
           Sec. 68.  [STUDY; USE OF CENTERLINE RUMBLE STRIPS.] 
           The commissioner of transportation shall study the 
        feasibility and practicability of: 
           (1) including milled-in rumble strips on the centerline of 
        the highway in all projects for the construction, 
        reconstruction, or resurfacing of two-lane trunk highways; and 
           (2) requiring that all projects for the construction, 
        reconstruction, or resurfacing of two-lane county state-aid 
        highways include milled-in rumble strips on the centerline of 
        the highway. 
           Sec. 69.  [TRANSFERS.] 
           The commissioner of finance shall transfer $155,000 from 
        the remaining balance in the alcohol-impaired driver education 
        account in the special revenue fund to the general fund. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 70.  [HUBBARD MARKETPLACE TRANSIT HUB.] 
           Until June 30, 2005, the metropolitan council is prohibited 
        from reducing the level of public access to services and 
        facilities at Hubbard Marketplace transit station, in the city 
        of Robbinsdale, as long as Hubbard Marketplace continues to be 
        operated as a transit station. 
           Sec. 71.  [BUS RAPID TRANSIT STUDY.] 
           Subdivision 1.  [STUDY REQUIRED.] The department of 
        transportation shall conduct a study on the feasibility of 
        implementing a bus rapid transit (BRT) system in the I-35W 
        corridor from downtown Minneapolis through south Minneapolis and 
        the cities of Richfield, Bloomington, Burnsville, and 
        Lakeville.  Bus rapid transit systems are those systems that 
        provide for significantly faster operating bus speeds, 
        integrated service, greater service reliability, and increased 
        convenience through investments in bus infrastructure, 
        equipment, technology, and operational improvements.  
           Subd. 2.  [STUDY REQUIREMENTS.] The study must, at a 
        minimum, include an analysis of the benefits and costs of 
        implementing a bus rapid transit system that includes the 
        following: 
           (1) frequent operation of buses on exclusive or 
        near-exclusive right-of-way on marked interstate highway 35W; 
           (2) changes in bus or platform design and fare collection 
        that provide for faster convenient boarding; 
           (3) station locations that are adjacent to, or easily 
        accessible from, the exclusive right-of-way; 
           (4) traffic management improvements and traffic signal 
        preemption on local streets within the I-35W corridor; and 
           (5) changes to existing transit services to provide for 
        timely connections and transfers.  
           Subd. 3.  [STUDY RECOMMENDATIONS.] The study must recommend:
           (1) options for implementing bus rapid transit in the I-35W 
        corridor; 
           (2) the associated cost of each option; and 
           (3) the anticipated benefits in terms of reduced travel 
        times, increased ridership, increased mobility, and impacts on 
        congestion levels within the corridor.  
           The study must be submitted by December 10, 2004, to the 
        house of representatives and senate committees with jurisdiction 
        over transportation policy and finance.  
           [EFFECTIVE DATE.] This section is effective July 1, 2003.  
           Sec. 72.  [REQUEST FOR PROPOSALS.] 
           Notwithstanding Minnesota Statutes, section 473.4051, the 
        metropolitan council must prepare a request for proposals to 
        operate in whole or in part the Hiawatha light rail transit 
        line.  The request must invite proposals from vendors from 
        within and outside of Minnesota.  The metropolitan council must 
        consult with the commissioner of administration in preparing the 
        request.  The council must obtain an internal competitive 
        proposal from its own metropolitan transit operations division.  
        The department of administration, in consultation with the 
        department of finance and the Hennepin county regional rail 
        authority, must evaluate the proposals received in a report to 
        the council.  The council must take into consideration the 
        evaluations of the commissioner in determining whether it is 
        more advantageous to contract with a vendor for the operating 
        services, and if so, which vendor to select.  If the council 
        determines it is more advantageous to contract with a vendor for 
        the operating services it must select a vendor not later than 
        December 1, 2003.  Minnesota Statutes, section 473.392, does not 
        apply to the procurement by the council of operating services 
        for the Hiawatha light rail transit line. 
           Sec. 73.  [ITASCA COUNTY; LAND EXCHANGE.] 
           Notwithstanding Minnesota Statutes, section 373.01, 
        subdivision 1, Itasca county may exchange a parcel or parcels of 
        real property of substantially similar or equal value without 
        advertising for bids to acquire real property for maintenance 
        facilities directly related to county highways.  The estimated 
        value of the parcels exchanged must be determined by the Itasca 
        county assessor, and the exchange must otherwise comply with 
        Minnesota Statutes, section 373.01, and other applicable law. 
           [EFFECTIVE DATE.] This section is effective immediately 
        without local approval, because it enables a local government 
        unit to exercise authority not granted by general law as 
        provided in Minnesota Statutes, section 645.023, subdivision 1, 
        paragraph (a). 
           Sec. 74.  [SOUTHWEST CORRIDOR RAIL TRANSIT; PROHIBITIONS.] 
           Subdivision 1.  [DEFINITION.] For purposes of this section, 
        "southwest transit way corridor" means the southwest transit way 
        corridor between Minneapolis and Eden Prairie as identified by 
        the Hennepin county regional rail authority in its southwest 
        corridor rail transit study. 
           Subd. 2.  [PROHIBITIONS.] Until July 1, 2005, neither the 
        commissioner of transportation, the metropolitan council, nor 
        the Hennepin county regional rail authority may take any action 
        or spend any money for preliminary engineering, final design, or 
        construction for light rail or commuter rail transit in the 
        southwest transit way corridor. 
           Sec. 75.  [NORTHSTAR COMMUTER RAIL STUDY.] 
           The commissioner of transportation, in conjunction with the 
        Northstar Corridor Development Authority, shall convene a work 
        group to further study the feasibility of constructing the 
        Northstar commuter rail.  The work group shall update ridership 
        forecasts for the commuter rail based on 2000 census data and 
        seek updated information from the Burlington Northern Santa Fe 
        railroad regarding capacity improvements, railroad usage rights, 
        construction, risk and liability allocation, and other related 
        issues.  By January 15, 2004, the commissioner shall report the 
        work group's findings to the chairs and ranking members of the 
        legislative committees having jurisdiction over transportation 
        and capital investment.  The commissioner of transportation 
        shall not pay for any outside consultant expenses related to 
        this work. 
           Sec. 76.  [COMMISSIONER OF REVENUE; STUDY.] 
           (a) The commissioner of revenue, in consultation with the 
        hospitality industry, shall conduct a study to determine the 
        amount of annual increase in state tax revenue that is 
        attributable to changes in the hours of permissible sale of 
        alcoholic beverages.  The commissioner shall report the results 
        of the study to the governor and legislature by January 15, 2005.
           (b) If the study determines that the amount of the annual 
        increase is at least $3,850,000 during the period studied, the 
        commissioner shall so report to the secretary of state. 
           Sec. 77.  [PARTICIPATION IN METROPOLITAN AIRPORTS 
        COMMISSION TAXICAB ADVISORY COMMITTEE.] 
           To the extent the metropolitan airports commission 
        maintains a taxicab advisory committee, the commission must 
        allow for full public comment and participation of any 
        individual, association, or other entity within the taxicab 
        industry.  The commission may not prohibit participation of any 
        representative of a taxicab owner, taxicab company, or 
        association that qualifies to be a member of the taxicab 
        advisory committee.  This section expires June 30, 2005. 
           Sec. 78.  2003 House File No. 719, section 30, if enacted, 
        is amended to read: 
           Sec. 30.  [EFFECTIVE DATE.] 
           Sections 1 to 9 and 13 to 29 are effective the day 
        following final enactment.  Sections 10 to 12 are effective July 
        1, 2003. 
           Sec. 79.  [REPEALER.] 
           Subdivision 1.  [STATUTES.] Minnesota Statutes 2002, 
        sections 162.09, subdivision 5; 169.794; 169.799; 174.025; 
        174.031; 174.242; 221.165; 221.54; and 221.55, are repealed. 
           Subd. 2.  [RULES.] Minnesota Rules, parts 7403.1300; 
        7413.0400; 7413.0500; 7800.0100, subparts 1, 3, and 5; 
        7800.0500; 7800.0700; 7800.1400; 7800.1500; 7800.1600; 
        7800.1700; 7800.3100; 7800.3900; 7800.4810; 7805.0800; 
        8800.0100, subparts 7 and 36; 8800.1200, subpart 3; 8800.3500; 
        8800.3700; 8800.4000; 8810.4200; 8810.4500; 8810.4600; 
        8810.4700; 8810.4800; 8810.4900; 8810.5000; 8810.5100; 
        8810.5500; 8810.9920; 8810.9921; 8850.6900, subparts 4, 6, 11, 
        12, and 17; 8850.7000; 8850.7025; 8850.7040; 8850.7100; 
        8850.7900; 8850.8200; 8850.8900; 8850.9000; 8850.9050, subparts 
        1 and 2; 8900.0100; 8900.0200; 8900.0300; 8900.0400; 8900.0500; 
        8900.0600; 8900.0700; 8900.0800; 8900.0900; 8900.1000; 
        8900.1100; 8910.1000; 8910.2000; 8910.2100; 8910.3000; and 
        8910.3100, are repealed. 
           Subd. 3.  [OTHER PROVISIONS.] Sections 50, 57, 58, and 59 
        are repealed on July 1, 2005, provided that the commissioner of 
        revenue has made the report to the secretary of state of the 
        determination described in section 76, paragraph (b), by that 
        date.  If no such determination has been made by that date, 
        sections 50, 57, 58, and 59 remain in effect. 
           Sec. 80.  [EFFECTIVE DATE.] 
           This article is effective the day following final 
        enactment, unless otherwise specified. 

                                   ARTICLE 3 
                             TRUNK HIGHWAY BONDING 
           Section 1.  [HIGHWAY AND TRANSIT APPROPRIATIONS.] 
           Subdivision 1.  [TRUNK HIGHWAY PROJECTS FINANCED BY STATE 
        BONDS.] (a) $400,000,000 is appropriated from the bond proceeds 
        account in the trunk highway fund to the commissioner of 
        transportation for trunk highway improvements.  This 
        appropriation is for: 
           (1) trunk highway improvements within the seven-county 
        metropolitan area primarily for improving traffic flow and 
        expanding highway capacity by eliminating traffic bottlenecks 
        and improving segments of at-risk interregional corridors within 
        the seven-county area; and 
           (2) trunk highway improvements on at-risk interregional 
        corridors located outside the seven-county metropolitan area. 
        These appropriations include the cost of actual payment to 
        landowners for lands acquired for highway right-of-way, payment 
        to lessees, interest subsidies, and relocation expenses.  Within 
        each category in clauses (1) and (2), the commissioner shall 
        spend not less than $25,000,000 on highway safety and capacity 
        improvement projects including but not limited to the addition 
        of lanes on trunk highway corridors with known safety problems.  
           (b) In spending the appropriation under paragraph (a), the 
        commissioner shall, to the maximum feasible extent, seek to 
        allocate spending equally between the department of 
        transportation metropolitan district and the remainder of the 
        state. 
           (c) The commissioner of transportation may use up to 
        $68,500,000 of this appropriation for program delivery. 
           (d) The commissioner shall use at least $36,000,000 of this 
        appropriation for accelerating transit capital improvements on 
        trunk highways such as shoulder bus lanes, bus park-and-ride 
        facilities, and ramp meter-bypass facilities. 
           Subd. 2.  [REPORT.] The commissioner shall report to the 
        committees having jurisdiction over transportation finance in 
        the house of representatives and senate, no later than January 
        15 of each year through 2007, on projects selected to be funded 
        by this appropriation.  The report must include the geographic 
        distribution of the selected projects and their adherence to the 
        criteria and spending allocation goals listed in subdivision 1, 
        and the location and cost of each project. 
           Subd. 3.  [BOND SALE EXPENSES.] $400,000 is appropriated 
        from the bond proceeds account in the trunk highway fund to the 
        commissioner of finance for bond sale expenses under Minnesota 
        Statutes, section 16A.641, subdivision 8.  
           Subd. 4.  [CANCELLATION.] Any part of the appropriation in 
        this section that is not encumbered or otherwise obligated by 
        June 30, 2007, must be canceled to the trunk highway bond 
        account in the state bond fund. 
           Sec. 2.  [BOND SALE.] 
           To provide the money appropriated in section 1, 
        subdivisions 1 and 4, from the bond proceeds account in the 
        trunk highway fund, the commissioner of finance shall sell and 
        issue bonds of the state in an amount up to $400,400,000 in the 
        manner, on the terms, and with the effect prescribed by 
        Minnesota Statutes, sections 167.50 to 167.52, and by the 
        Minnesota Constitution, article XIV, section 11, at the times 
        and in the amounts requested by the commissioner of 
        transportation.  The proceeds of the bonds, except accrued 
        interest and any premium received from the sale of the bonds, 
        must be deposited in the bond proceeds account in the trunk 
        highway fund. 
           Sec. 3.  [ADVANCE CONSTRUCTION.] 
           (a) Through June 30, 2009, the commissioner of 
        transportation may spend up to $400,000,000 on trunk highway 
        improvements from funds approved for expenditure by the Federal 
        Highway Administration and designated as advance construction 
        funds. 
           (b) Any additional advance construction expenditures by the 
        commissioner approved by the Federal Highway Administration 
        through June 30, 2009, may be added to the amount in paragraph 
        (a). 
           (c) In spending federal funds under paragraphs (a) and (b), 
        the commissioner shall, to the maximum feasible extent, seek to 
        allocate spending equally between the department of 
        transportation metropolitan district and the remainder of the 
        state. 
           (d) The commissioner shall report to the chairs of the 
        senate and house of representatives committees with jurisdiction 
        over transportation policy and finance by January 15 each year 
        regarding the use of advance construction funding in the 
        previous and current fiscal year.  The report must include: 
           (1) an analysis of the impact of the use of advance 
        construction funding on the trunk highway fund balance and cash 
        flow; 
           (2) an estimate of the amount of additional advance 
        construction funding that is available for use in future fiscal 
        years and the impact on the department's total road construction 
        program; and 
           (3) geographic distribution of spending and compliance with 
        the spending goal in paragraph (c). 
           Sec. 4.  [GREATER MINNESOTA TRANSIT.] 
           The commissioner of transportation may spend up to 
        $5,000,000 through June 30, 2008, in federal transit funds for 
        capital assistance to public transit systems under Minnesota 
        Statutes, section 174.24.  This amount is in addition to any 
        appropriations made by law for this purpose. 
           Sec. 5.  [REPORT.] 
           The commissioner shall report by January 15 of each year 
        through 2007 to the chairs of the legislative committees with 
        jurisdiction over transportation policy and finance on (1) how 
        the department is spending the appropriations in this article 
        for trunk highway improvements, and (2) the department's plans 
        to implement trunk highway improvements funded under this 
        article with current department staffing, and an analysis of the 
        need for additional staffing and consultant services. 
           Sec. 6.  [EFFECTIVE DATE.] 
           Sections 1 to 4 are effective the day following final 
        enactment. 

                                   ARTICLE 4 
                 FISCAL YEAR 2003 APPROPRIATIONS AND TRANSFERS 
        Section 1.  [TRANSPORTATION APPROPRIATIONS AND TRANSFERS.] 
           The dollar amounts in the columns under "APPROPRIATION 
        CHANGE" are added to or, if shown in parentheses, are subtracted 
        from the appropriations in Laws 2001, First Special Session 
        chapter 8, as amended, or other law to the specified agencies.  
        The appropriations are from the general fund or other named fund 
        and are available for the fiscal years indicated for each 
        purpose.  The figure "2003" means that the addition to or 
        subtraction from the appropriations listed under the figure is 
        for the fiscal year ending June 30, 2003. 
                                                               2003 
        TRANSFERS FROM OTHER FUNDS                         $ 15,000,000 
        CANCELLATIONS - GENERAL FUND                       (110,000,000)
        TRUNK HIGHWAY BOND PROCEEDS
        ACCOUNT - TRUNK HIGHWAY FUND                        110,110,000
                              APPROPRIATION CHANGE 
        Sec. 2.  TRANSPORTATION                             110,000,000 
        This appropriation is from the trunk 
        highway bond proceeds account in the 
        trunk highway fund and is available for 
        expenditure beginning the day following 
        final enactment.  It is for the same 
        purposes as specified in Laws 2000, 
        chapter 479, article 1, section 2, 
        subdivision 3. 
        Of the general fund appropriation in 
        Laws 2000, chapter 479, article 1, 
        section 2, subdivision 3, $110,000,000 
        cancels to the general fund.  This 
        cancellation is effective the day 
        following final enactment. 
        By June 30, 2003, the commissioner of 
        finance shall transfer $15,000,000 of 
        the cash balance in the state airports 
        fund established in Minnesota Statutes, 
        section 360.017, to the general fund. 
        Sec. 3.  BOND SALE EXPENSES                             110,000 
        To the commissioner of finance for bond 
        sale expenses under Minnesota Statutes, 
        section 16A.641, subdivision 8.  This 
        appropriation is from the trunk highway 
        bond proceeds account in the trunk 
        highway fund. 
        Sec. 4.  BOND SALE AUTHORIZATION                     
        To provide the money appropriated in 
        this act from the trunk highway bond 
        proceeds account in the trunk highway 
        fund, the commissioner of finance shall 
        sell and issue bonds of the state in an 
        amount up to $110,110,000 in the 
        manner, upon the terms, and with the 
        effect prescribed by Minnesota 
        Statutes, sections 167.50 to 167.52, 
        and by the Minnesota Constitution, 
        article XIV, section 11, at the times 
        and in the amount requested by the 
        commissioner of transportation.  The 
        proceeds of the bonds, except accrued 
        interest and any premium received on 
        the sale of the bonds, must be credited 
        to the trunk highway bond proceeds 
        account in the trunk highway fund. 
           Sec. 5.  [EFFECTIVE DATE.] 
           Sections 1 to 4 are effective the day following final 
        enactment. 
           Presented to the governor May 30, 2003 
           Signed by the governor June 8, 2003, 7:40 p.m.