1.1                          A bill for an act 
  1.2             relating to motor carriers; deregulating motor 
  1.3             carriers of passengers and providers of personal 
  1.4             transportation service; providing for special 
  1.5             transportation service; making technical changes; 
  1.6             appropriating money; amending Minnesota Statutes 1996, 
  1.7             sections 174.29, subdivision 1; 174.30, subdivisions 
  1.8             2a, 3, 4, 4a, 6, 7, 8, and by adding a subdivision; 
  1.9             221.011, subdivision 15, and by adding a subdivision; 
  1.10            221.021; 221.022; 221.025; 221.031, subdivisions 1, 
  1.11            3a, and 3b; 221.0314, subdivision 1; 221.091; 221.124; 
  1.12            221.131, subdivision 2; 221.141, subdivision 1; 
  1.13            221.172, subdivision 10; 221.185, subdivisions 1, 3, 
  1.14            and by adding a subdivision; 221.291, subdivision 4; 
  1.15            and 256B.04, subdivision 12; proposing coding for new 
  1.16            law in Minnesota Statutes, chapter 221; repealing 
  1.17            Minnesota Statutes 1996, sections 168.011, subdivision 
  1.18            36; 168.1281; 174.30, subdivision 1; 221.011, 
  1.19            subdivisions 2b, 8, 9, 10, 12, 14, 20, 21, 24, 25, 28, 
  1.20            32, 34, 35, 36, 38, 39, 40, 41, 44, 45, and 46; 
  1.21            221.0313; 221.0315; 221.041; 221.051; 221.061; 
  1.22            221.071; 221.072; 221.081; 221.101; 221.111; 221.121; 
  1.23            221.122; 221.123; 221.131, subdivisions 1, 2a, 3, 4, 
  1.24            and 5; 221.132; 221.141, subdivision 6; 221.151; 
  1.25            221.152; 221.153; 221.161; 221.165; 221.171; 221.172, 
  1.26            subdivisions 3, 4, 5, 6, 7, 8, and 9; 221.185, 
  1.27            subdivisions 2, 3a, 4, 5, 5a, and 9; 221.241; 221.281; 
  1.28            221.291, subdivision 5; 221.293; 221.296; 221.54; 
  1.29            221.55; and 221.85. 
  1.30  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.31     Section 1.  Minnesota Statutes 1996, section 174.29, 
  1.32  subdivision 1, is amended to read: 
  1.33     Subdivision 1.  [DEFINITION.] For the purpose of ~~sections~~ 
  1.34  ~~174.29 and 174.30~~ subdivision 2, "special transportation service"
  1.35  means motor vehicle transportation provided on a regular basis 
  1.36  by a public or private entity or person that is designed 
  1.37  exclusively or primarily to serve individuals who are elderly, 
  2.1   handicapped, or disabled and who are unable to use regular means 
  2.2   of transportation but do not require ambulance service, as 
  2.3   defined in section 144.801, subdivision 4.  Special 
  2.4   transportation service includes but is not limited to service 
  2.5   provided by specially equipped buses, vans, taxis, and 
  2.6   volunteers driving private automobiles. 
  2.7      Sec. 2.  Minnesota Statutes 1996, section 174.30, is 
  2.8   amended by adding a subdivision to read: 
  2.9      Subd. 1a.  [SCOPE.] The terms used in this section have the 
  2.10  meanings given them, as follows: 
  2.11     (a) "Provider" means a public or private entity or person 
  2.12  who transports, or represents itself as being able or equipped 
  2.13  to transport, special transportation passengers, either 
  2.14  individually or in groups, except for transportation provided: 
  2.15     (1) under a certificate or permit issued by the 
  2.16  commissioner under chapter 221; 
  2.17     (2) in a school bus as defined in section 169.01, 
  2.18  subdivision 6, or an ambulance regulated under chapter 144; 
  2.19     (3) by a volunteer driver using a private automobile or 
  2.20  van; or 
  2.21     (4) by a nursing home licensed under section 144A.02, a 
  2.22  board and care facility licensed under section 144.50, or a day 
  2.23  training and habilitation service, day care, or group home 
  2.24  facility licensed under sections 245A.01 to 245A.19, unless the 
  2.25  facility or program provides transportation to nonresidents on a 
  2.26  regular basis and the facility receives reimbursement, other 
  2.27  than per diem payments, for that service under rules adopted by 
  2.28  the commissioner of human services. 
  2.29     (b) "Special transportation service" means transportation 
  2.30  by motor vehicle that is arranged between a provider and a 
  2.31  special transportation passenger. 
  2.32     (c) "Special transportation passenger" means an elderly 
  2.33  person or a person with a disability who does not require 
  2.34  ambulance service as defined in section 144.801, subdivision 4, 
  2.35  but who, because of a physical or mental impairment, (1) 
  2.36  requires a vehicle that is accessible to persons with 
  3.1   disabilities, (2) needs or is likely to need the type of 
  3.2   assistance described in section 174.255, subdivision 3, or (3) 
  3.3   needs personal assistance to enter, ride in, or exit the 
  3.4   vehicle.  A vehicle is accessible if it is equipped to allow 
  3.5   transportation of an individual confined to a wheelchair or 
  3.6   using an orthopedic device. 
  3.7      Sec. 3.  Minnesota Statutes 1996, section 174.30, 
  3.8   subdivision 2a, is amended to read: 
  3.9      Subd. 2a.  [VEHICLE AND EQUIPMENT SAFETY; PROVIDER 
  3.10  RESPONSIBILITIES.] (a) ~~Every special transportation service~~ A 
  3.11  provider shall systematically inspect, repair, and maintain, or 
  3.12  cause to be inspected, repaired, and maintained, the vehicles 
  3.13  and equipment subject to the control of the provider.  Each 
  3.14  vehicle and its equipment must be inspected daily.  A vehicle 
  3.15  may not be operated in a condition that is likely to cause an 
  3.16  accident or breakdown of the vehicle.  Equipment, including 
  3.17  specialized equipment necessary to ensure vehicle usability and 
  3.18  safety for ~~disabled persons~~ special transportation passengers, 
  3.19  must be in proper and safe operating condition at all times. 
  3.20     (b) ~~Each special transportation~~ A provider shall maintain 
  3.21  the following records for each vehicle it uses to provide 
  3.22  special transportation service: 
  3.23     (1) an identification of the vehicle, including make, 
  3.24  serial number, and year, and, if the vehicle is not owned by the 
  3.25  provider, the name and address of the person furnishing the 
  3.26  vehicle; 
  3.27     (2) a schedule of inspection and maintenance operations to 
  3.28  be performed; 
  3.29     (3) a record of inspections, repairs, and maintenance 
  3.30  showing the date and nature; 
  3.31     (4) a lubrication record; and 
  3.32     (5) a record of tests conducted to ensure that emergency 
  3.33  doors or windows and wheelchair lifts function properly. 
  3.34     Sec. 4.  Minnesota Statutes 1996, section 174.30, 
  3.35  subdivision 3, is amended to read: 
  3.36     Subd. 3.  [OTHER STANDARDS; WHEELCHAIR SECUREMENT.] (a) 
  4.1   A ~~special transportation service that~~ provider who transports 
  4.2   individuals occupying wheelchairs is subject to the provisions 
  4.3   of sections 299A.11 to 299A.18 concerning wheelchair securement 
  4.4   devices.  The commissioners of transportation and public safety 
  4.5   shall cooperate in the enforcement of this section and sections 
  4.6   299A.11 to 299A.18 so that a single inspection is sufficient to 
  4.7   ascertain compliance with sections 299A.11 to 299A.18 and with 
  4.8   the standards adopted under this section.  Representatives of 
  4.9   the department of transportation may inspect wheelchair 
  4.10  securement devices in vehicles operated by ~~special~~ 
  4.11  ~~transportation service providers~~ a provider with a current 
  4.12  certificate of compliance to determine compliance with sections 
  4.13  299A.11 to 299A.18 and to issue certificates under section 
  4.14  299A.14, subdivision 4. 
  4.15     (b) In place of a certificate issued under section 299A.14, 
  4.16  the commissioner may issue a decal under subdivision 4 for a 
  4.17  vehicle equipped with a wheelchair securement device if the 
  4.18  device complies with sections 299A.11 to 299A.18 and the decal 
  4.19  displays the information in section 299A.14, subdivision 4. 
  4.20     Sec. 5.  Minnesota Statutes 1996, section 174.30, 
  4.21  subdivision 4, is amended to read: 
  4.22     Subd. 4.  [VEHICLE AND EQUIPMENT INSPECTION; DECAL.] (a) 
  4.23  The commissioner shall inspect or provide for the inspection 
  4.24  of a provider's vehicles at least annually.  In addition to 
  4.25  scheduled annual inspections and reinspections scheduled for the 
  4.26  purpose of verifying that deficiencies have been corrected, 
  4.27  unannounced inspections of any vehicle may be conducted.  
  4.28     (b) On determining that a vehicle or vehicle equipment is 
  4.29  in a condition that is likely to cause an accident or breakdown, 
  4.30  the commissioner shall require the vehicle to be taken out of 
  4.31  service immediately.  The commissioner shall require that 
  4.32  vehicles and equipment not meeting standards be repaired and 
  4.33  brought into conformance with the standards and shall require 
  4.34  written evidence of compliance from the ~~operator~~ provider before 
  4.35  allowing the ~~operator~~ provider to return the vehicle to service. 
  4.36     (c) The commissioner shall provide in the rules procedures 
  5.1   for inspecting vehicles, removing unsafe vehicles from service, 
  5.2   determining and requiring compliance, and reviewing driver 
  5.3   qualifications. 
  5.4      (d) The commissioner shall design a distinctive decal to be 
  5.5   issued to ~~special transportation service~~ providers with a 
  5.6   current certificate of compliance under this section.  A decal 
  5.7   is valid for one year from the last day of the month in which it 
  5.8   is issued.  A person who is subject to the operating standards 
  5.9   adopted under this section may not provide special 
  5.10  transportation service in a vehicle that does not conspicuously 
  5.11  display a decal issued by the commissioner. 
  5.12     Sec. 6.  Minnesota Statutes 1996, section 174.30, 
  5.13  subdivision 4a, is amended to read: 
  5.14     Subd. 4a.  [CERTIFICATION OF SPECIAL TRANSPORTATION 
  5.15  PROVIDERS.] The commissioner shall annually evaluate or provide 
  5.16  for the evaluation of each provider ~~of special transportation~~ 
  5.17  ~~service~~ regulated under this section and certify that the 
  5.18  provider is in compliance with the standards under this section. 
  5.19     Sec. 7.  Minnesota Statutes 1996, section 174.30, 
  5.20  subdivision 6, is amended to read: 
  5.21     Subd. 6.  [PREEMPTION OF OTHER REQUIREMENTS.] (a) 
  5.22  Notwithstanding any other law, ordinance, or resolution to the 
  5.23  contrary, ~~an operator of special transportation service that~~ a 
  5.24  provider who has been issued a current certificate of compliance 
  5.25  under subdivision 4a for vehicles used to provide that service 
  5.26  is not required to obtain any other state or local permit, 
  5.27  license or certificate as a condition of operating the vehicles 
  5.28  for that purpose.  This subdivision does not exempt any vehicle 
  5.29  from the requirements imposed on vehicles generally as a 
  5.30  condition of using the public streets and highways.  
  5.31     (b) The requirements of sections 169.781 to 169.783 and 
  5.32  chapter 221 do not apply to vehicles when they are being 
  5.33  operated under a current certificate of compliance issued by the 
  5.34  commissioner. 
  5.35     Sec. 8.  Minnesota Statutes 1996, section 174.30, 
  5.36  subdivision 7, is amended to read: 
  6.1      Subd. 7.  [ENFORCEMENT.] No state agency, political 
  6.2   subdivision, or other public agency shall provide any capital or 
  6.3   operating assistance to or reimbursement for special 
  6.4   transportation service unless the ~~operator~~ provider providing 
  6.5   the service has a current certificate of compliance issued under 
  6.6   subdivision 4a. 
  6.7      Sec. 9.  Minnesota Statutes 1996, section 174.30, 
  6.8   subdivision 8, is amended to read: 
  6.9      Subd. 8.  [ADMINISTRATIVE PENALTIES.] The commissioner may 
  6.10  issue an order requiring violations of this section and the 
  6.11  operating standards adopted under this section to be corrected 
  6.12  and assessing monetary penalties of up to $1,000 for all 
  6.13  violations identified during a single inspection, investigation, 
  6.14  or audit.  Section 221.036 applies to administrative penalty 
  6.15  orders issued under this section or section 174.315.  The 
  6.16  commissioner shall suspend, without a hearing, a ~~special~~ 
  6.17  ~~transportation service~~ provider's certificate of compliance for 
  6.18  failure to pay, or make satisfactory arrangements to pay, an 
  6.19  administrative penalty when due. 
  6.20     Penalties collected under this section must be deposited in 
  6.21  the state treasury and credited to the trunk highway fund. 
  6.22     Sec. 10.  Minnesota Statutes 1996, section 221.011, 
  6.23  subdivision 15, is amended to read: 
  6.24     Subd. 15.  [MOTOR CARRIER.] "Motor carrier" means a ~~carrier~~ 
  6.25  ~~operating for hire under the authority of this chapter and~~ 
  6.26  ~~subject to the rules and orders of the commissioner or the board~~ 
  6.27  person engaged in the for-hire transportation of property or 
  6.28  passengers.  "Motor carrier" does not include a building mover 
  6.29  subject to section 221.81 or a limousine operator subject to 
  6.30  section 221.84. 
  6.31     Sec. 11.  Minnesota Statutes 1996, section 221.011, is 
  6.32  amended by adding a subdivision to read: 
  6.33     Subd. 48.  [MOTOR CARRIER OF PASSENGERS.] "Motor carrier of 
  6.34  passengers" means a motor carrier engaged in the for-hire 
  6.35  transportation of passengers in Minnesota, who has filed a 
  6.36  registration statement with the commissioner. 
  7.1      Sec. 12.  Minnesota Statutes 1996, section 221.021, is 
  7.2   amended to read: 
  7.3      221.021 [~~OPERATION~~ CERTIFICATE ~~OR PERMIT~~ OF REGISTRATION 
  7.4   REQUIRED.] 
  7.5      Subdivision 1.  [REQUIREMENT.] No person may operate ~~as a~~ 
  7.6   ~~motor carrier~~ or advertise ~~or otherwise hold out~~ as a motor 
  7.7   carrier without a certificate ~~or permit~~ of registration in 
  7.8   effect.  ~~A certificate or permit may be suspended or revoked~~ 
  7.9   ~~upon conviction of violating a provision of sections 221.011 to~~ 
  7.10  ~~221.296 or an order or rule of the commissioner or board~~ 
  7.11  ~~governing the operation of motor carriers, and upon a finding by~~ 
  7.12  ~~the court that the violation was willful.  The board may, for~~ 
  7.13  ~~good cause after a hearing, suspend or revoke a certificate or~~ 
  7.14  ~~permit for a violation of a provision of sections 221.011 to~~ 
  7.15  ~~221.296 or an order issued or rule adopted by the commissioner~~ 
  7.16  ~~or board under~~ 
  7.17     Subd. 2.  [SANCTIONS.] The commissioner may suspend, 
  7.18  revoke, or deny renewal of a certificate of registration for 
  7.19  serious or repeated violations of this chapter.  
  7.20     Subd. 3.  [HEARING.] A carrier affected by an action of the 
  7.21  commissioner under this section may, within 20 days of receipt 
  7.22  of a notice of the commissioner's action, request an 
  7.23  administrative hearing to review the certificate suspension, 
  7.24  revocation, or denial of renewal.  The hearing must be conducted 
  7.25  under the conference contested case rules of the office of 
  7.26  administrative hearings. 
  7.27     Sec. 13.  [221.0212] [PASSENGER CARRIERS; REGISTRATION 
  7.28  AUDIT AND INSPECTION; FEE.] 
  7.29     Before issuing a new or annual certificate of registration 
  7.30  to a motor carrier of passengers under section 221.0252, the 
  7.31  commissioner shall: 
  7.32     (1) conduct an audit of the motor carrier's records; 
  7.33     (2) inspect the vehicles the carrier uses in its motor 
  7.34  carrier operation to determine if they comply with the federal 
  7.35  regulations incorporated in section 221.0314 or accept for 
  7.36  filing proof that such an inspection was conducted within the 
  8.1   previous 30 days by a qualified vehicle inspector certified by 
  8.2   the department of public safety; 
  8.3      (3) verify that the carrier has a designated office in 
  8.4   Minnesota where the books and files necessary to conduct 
  8.5   business and the records required by this chapter are kept and 
  8.6   shall be available for inspection by the commissioner; 
  8.7      (4) audit the carrier's drivers' criminal background and 
  8.8   safety records; 
  8.9      (5) verify compliance with the insurance and bonding 
  8.10  requirements of section 221.141; and 
  8.11     (6) collect a registration fee of $500, which must be 
  8.12  deposited in the trunk highway fund. 
  8.13     Sec. 14.  Minnesota Statutes 1996, section 221.022, is 
  8.14  amended to read: 
  8.15     221.022 [EXCEPTION.] 
  8.16     ~~The powers granted to the board under sections 221.011 to~~ 
  8.17  ~~221.296 do not include the power~~ Sections 221.021, 221.0212, and 
  8.18  221.0252 do not apply to ~~regulate~~ any service or vehicles 
  8.19  operated by the metropolitan council or to ~~regulate~~ passenger 
  8.20  transportation service provided under contract to the department 
  8.21  or the metropolitan council.  A provider of passenger 
  8.22  transportation service under contract to the department or the 
  8.23  metropolitan council may not provide charter service, as defined 
  8.24  in Code of Federal Regulations, title 49, section 604.5, without 
  8.25  first having ~~obtained a permit to operate as a charter~~ 
  8.26  ~~carrier~~ complied with section 221.0252 and Code of Federal 
  8.27  Regulations, title 49, part 604.  
  8.28     Sec. 15.  Minnesota Statutes 1996, section 221.025, is 
  8.29  amended to read: 
  8.30     221.025 [EXEMPTIONS.] 
  8.31     ~~The provisions of this chapter requiring a certificate or~~ 
  8.32  ~~permit to operate as a motor carrier~~ Sections 221.021, 221.0212, 
  8.33  221.0251, 221.0252, and 221.026 do not apply to the intrastate 
  8.34  transportation described below:  
  8.35     (a) the transportation of students to or from school or 
  8.36  school activities in a school bus inspected and certified under 
  9.1   section 169.451 and the transportation of children or parents to 
  9.2   or from a Head Start facility or Head Start activity in a Head 
  9.3   Start bus inspected and certified under section 169.451; 
  9.4      (b) the transportation of solid waste, as defined in 
  9.5   section 116.06, subdivision 22, including recyclable materials 
  9.6   and waste tires, except that the term "hazardous waste" has the 
  9.7   meaning given it in section 221.011, subdivision 31; 
  9.8      (c) a commuter van as defined in section 221.011, 
  9.9   subdivision 27; 
  9.10     (d) authorized emergency vehicles as defined in section 
  9.11  169.01, subdivision 5, including ambulances; and tow trucks 
  9.12  equipped with proper and legal warning devices when picking up 
  9.13  and transporting (1) disabled or wrecked motor vehicles or (2) 
  9.14  vehicles towed or transported under a towing order issued by a 
  9.15  public employee authorized to issue a towing order; 
  9.16     (e) the transportation of grain samples ~~under conditions~~ 
  9.17  ~~prescribed by the board~~; 
  9.18     (f) the delivery of agricultural lime; 
  9.19     (g) the transportation of dirt and sod within an area 
  9.20  having a 50-mile radius from the home post office of the person 
  9.21  performing the transportation; 
  9.22     (h) the transportation of sand, gravel, bituminous asphalt 
  9.23  mix, concrete ready mix, concrete blocks or tile and the mortar 
  9.24  mix to be used with the concrete blocks or tile, or crushed rock 
  9.25  to or from the point of loading or a place of gathering within 
  9.26  an area having a 50-mile radius from that person's home post 
  9.27  office or a 50-mile radius from the site of construction or 
  9.28  maintenance of public roads and streets; 
  9.29     (i) the transportation of pulpwood, cordwood, mining 
  9.30  timber, poles, posts, decorator evergreens, wood chips, sawdust, 
  9.31  shavings, and bark from the place where the products are 
  9.32  produced to the point where they are to be used or shipped; 
  9.33     (j) the transportation of fresh vegetables from farms to 
  9.34  canneries or viner stations, from viner stations to canneries, 
  9.35  or from canneries to canneries during the harvesting, canning, 
  9.36  or packing season, or transporting sugar beets, wild rice, or 
 10.1   rutabagas from the field of production to the first place of 
 10.2   delivery or unloading, including a processing plant, warehouse, 
 10.3   or railroad siding; 
 10.4      (k) the transportation of property or freight, other than 
 10.5   household goods and petroleum products in bulk, entirely within 
 10.6   the corporate limits of a city or between contiguous cities 
 10.7   except as provided in section 221.296; 
 10.8      (l) the transportation of unprocessed dairy products in 
 10.9   bulk within an area having a 100-mile radius from the home post 
 10.10  office of the person providing the transportation; 
 10.11     (m) the transportation of agricultural, horticultural, 
 10.12  dairy, livestock, or other farm products within an area having a 
 10.13  25-mile radius from the person's home post office and the 
 10.14  carrier may transport other commodities within the 25-mile 
 10.15  radius if the destination of each haul is a farm; 
 10.16     (n) passenger transportation service ~~that is not charter~~ 
 10.17  ~~service and~~ that is under contract to and with operating 
 10.18  assistance from the department or the metropolitan council; 
 10.19     (o) the transportation of newspapers, as defined in section 
 10.20  331A.01, subdivision 5, telephone books, handbills, circulars, 
 10.21  or pamphlets in a vehicle with a gross vehicle weight of 10,000 
 10.22  pounds or less; and 
 10.23     (p) transportation of potatoes from the field of 
 10.24  production, or a storage site owned or otherwise controlled by 
 10.25  the producer, to the first place of processing. 
 10.26     The exemptions provided in this section apply to a person 
 10.27  only while the person is exclusively engaged in exempt 
 10.28  transportation. 
 10.29     Sec. 16.  [221.0252] [PASSENGER CARRIER REGISTRATION.] 
 10.30     Subdivision 1.  [REGISTRATION STATEMENT.] A person who 
 10.31  wishes to operate as a motor carrier of passengers shall file a 
 10.32  complete and accurate registration statement with the 
 10.33  commissioner.  A registration statement must be on a form 
 10.34  provided by the commissioner and include: 
 10.35     (1) the registrant's name, including an assumed or 
 10.36  fictitious name used by the registrant in doing business; 
 11.1      (2) the registrant's mailing address and business telephone 
 11.2   number; 
 11.3      (3) the registrant's federal employer identification number 
 11.4   and Minnesota business identification number and the 
 11.5   identification numbers, if any, assigned to the registrant by 
 11.6   the United States Department of Transportation, Interstate 
 11.7   Commerce Commission, or Environmental Protection Agency; 
 11.8      (4) the name, title, and telephone number of the individual 
 11.9   who is principally responsible for the operation of the 
 11.10  registrant's transportation business; 
 11.11     (5) the principal location from which the registrant 
 11.12  conducts its transportation business and where the records 
 11.13  required by this chapter will be kept; 
 11.14     (6) if different from clause (5), the location in Minnesota 
 11.15  where the records required by this chapter will be available for 
 11.16  inspection and copying by the commissioner; 
 11.17     (7) whether the registrant's business is a corporation, 
 11.18  partnership, limited liability partnership, limited liability 
 11.19  company, or sole proprietorship; and 
 11.20     (8) if the registrant is a foreign corporation authorized 
 11.21  to transact business in Minnesota, the state of incorporation 
 11.22  and the name and address of its registered agent. 
 11.23     Subd. 2.  [SIGNATURE REQUIRED.] A registration statement 
 11.24  may be signed only by a corporate officer, general partner, 
 11.25  limited liability company board member, or sole proprietor.  A 
 11.26  signature must be notarized. 
 11.27     Subd. 3.  [CERTIFICATE OF REGISTRATION; REQUIREMENTS; 
 11.28  ISSUANCE; DURATION.] (a) The commissioner shall issue a motor 
 11.29  carrier of passengers certificate of registration to a motor 
 11.30  carrier of passengers who has filed a registration statement 
 11.31  that complies with subdivisions 1 and 2, has paid the required 
 11.32  fee, has a satisfactory safety rating, and has complied with the 
 11.33  financial responsibility requirements in section 221.141.  
 11.34     (b) A photocopy of the carrier's certificate of 
 11.35  registration must be carried in each vehicle operated under the 
 11.36  registration and must be made available to the department and 
 12.1   other law enforcement officials upon request. 
 12.2      (c) A motor carrier of passengers registration is not 
 12.3   assignable or transferable and is valid until it expires or is 
 12.4   suspended, revoked, or canceled, whichever occurs first.  A 
 12.5   registration is valid for one year from the date issued. 
 12.6      Subd. 4.  [SAFETY REGULATIONS.] A motor carrier of 
 12.7   passengers shall comply with the federal regulations 
 12.8   incorporated by reference in section 221.0314 unless exempt 
 12.9   under section 221.031. 
 12.10     Subd. 5.  [SUSPENSION FOR UNSATISFACTORY SAFETY 
 12.11  RATING.] Following the procedures in section 221.185, the 
 12.12  commissioner shall immediately suspend the registration of a 
 12.13  motor carrier of passengers who receives an unsatisfactory 
 12.14  safety rating.  The commissioner shall conduct one follow-up 
 12.15  compliance audit to determine if the motor carrier's safety 
 12.16  rating should be changed or the suspension rescinded within 30 
 12.17  days of receiving a written request from the carrier.  
 12.18  Additional compliance reviews may be conducted at the 
 12.19  commissioner's discretion. 
 12.20     Subd. 6.  [ANNUAL RENEWAL.] A motor carrier of passengers 
 12.21  shall renew its registration each year on a form prescribed by 
 12.22  the commissioner.  The commissioner shall develop and implement 
 12.23  an expedited renewal process to minimize the burden on motor 
 12.24  carriers. 
 12.25     Sec. 17.  Minnesota Statutes 1996, section 221.031, 
 12.26  subdivision 1, is amended to read: 
 12.27     Subdivision 1.  [POWERS, DUTIES, REPORTS, LIMITATIONS.] (a) 
 12.28  This subdivision applies to motor carriers engaged in intrastate 
 12.29  commerce. 
 12.30     (b) The commissioner shall prescribe rules for the 
 12.31  operation of motor carriers, including their facilities; 
 12.32  accounts; leasing of vehicles and drivers; service; safe 
 12.33  operation of vehicles; equipment, parts, and accessories; hours 
 12.34  of service of drivers; driver qualifications; accident 
 12.35  reporting; identification of vehicles; installation of safety 
 12.36  devices; inspection, repair, and maintenance; and proper 
 13.1   automatic speed regulators if, in the opinion of the 
 13.2   commissioner, there is a need for the rules.  
 13.3      (c) The commissioner shall direct the repair and 
 13.4   reconstruction or replacement of an inadequate or unsafe motor 
 13.5   carrier vehicle or facility.  The commissioner may require the 
 13.6   construction and maintenance or furnishing of suitable and 
 13.7   proper freight terminals, passenger depots, waiting rooms, and 
 13.8   accommodations or shelters in a city in this state or at a point 
 13.9   on the highway traversed which the commissioner, after 
 13.10  investigation by the department, may deem just and proper for 
 13.11  the protection of passengers or property.  
 13.12     ~~(d) The commissioner shall require holders of household~~ 
 13.13  ~~goods mover permits, charter carrier permits, and regular route~~ 
 13.14  ~~passenger carrier certificates to file annual and other reports~~ 
 13.15  ~~including annual accounts of motor carriers, schedules of rates~~ 
 13.16  ~~and charges, or other data by motor carriers, regulate motor~~ 
 13.17  ~~carriers in matters affecting the relationship between them and~~ 
 13.18  ~~the traveling and shipping public, and prescribe other rules as~~ 
 13.19  ~~may be necessary to carry out the provisions of this chapter.~~  
 13.20     ~~(e) A motor carrier subject to paragraph (d) but having~~ 
 13.21  ~~gross revenues from for-hire transportation in a calendar year~~ 
 13.22  ~~of less than $200,000 may, at the discretion of the~~ 
 13.23  ~~commissioner, be exempted from the filing of an annual report,~~ 
 13.24  ~~if instead the motor carrier files an abbreviated annual report,~~ 
 13.25  ~~in a form as may be prescribed by the commissioner, attesting~~ 
 13.26  ~~that the motor carrier's gross revenues did not exceed $200,000~~ 
 13.27  ~~in the previous calendar year.  Motor carrier gross revenues~~ 
 13.28  ~~from for-hire transportation, for the purposes of this~~ 
 13.29  ~~subdivision only, do not include gross revenues received from~~ 
 13.30  ~~the operation of school buses as defined in section 169.01,~~ 
 13.31  ~~subdivision 6.~~ 
 13.32     ~~(f)~~ (d) The commissioner shall enforce sections 169.781 to 
 13.33  169.783. 
 13.34     ~~(g) The commissioner shall make no rules relating to the~~ 
 13.35  ~~granting, limiting, or modifying of permits or certificates of~~ 
 13.36  ~~convenience and necessity, which are powers granted to the board.~~
 14.1      ~~(h) The board may extend the termini of a route or alter or~~ 
 14.2   ~~change the route of a regular route common carrier upon petition~~ 
 14.3   ~~and after finding that public convenience and necessity require~~ 
 14.4   ~~an extension, alteration, or change.~~ 
 14.5      Sec. 18.  Minnesota Statutes 1996, section 221.031, 
 14.6   subdivision 3a, is amended to read: 
 14.7      Subd. 3a.  [CONTRACTORS OR RECIPIENTS OF TRANSPORTATION 
 14.8   ASSISTANCE.] Notwithstanding subdivision 3, providers of 
 14.9   passenger transportation service under contract to and with 
 14.10  operating assistance from the department or the metropolitan 
 14.11  council must comply with rules for driver qualifications; 
 14.12  driving of motor vehicles; parts and accessories necessary for 
 14.13  safe operation; hours of service of drivers; inspection, repair, 
 14.14  and maintenance; and the rules adopted in section 221.0314, 
 14.15  subdivision 8, for accident reporting.  
 14.16     This subdivision does not apply to (1) a local transit 
 14.17  commission, (2) a transit authority created by the legislature, 
 14.18  (3) special transportation service certified by the commissioner 
 14.19  under section 174.30, or (4) special transportation service 
 14.20  defined in section ~~174.29, subdivision 1~~ 174.30, when provided 
 14.21  by a volunteer driver operating a private passenger vehicle 
 14.22  defined in section 169.01, subdivision 3a. 
 14.23     Sec. 19.  Minnesota Statutes 1996, section 221.031, 
 14.24  subdivision 3b, is amended to read: 
 14.25     Subd. 3b.  [PASSENGER TRANSPORTATION; EXEMPTIONS.] (a) A 
 14.26  person who transports passengers for hire in intrastate 
 14.27  commerce, who is not made subject to the rules adopted in 
 14.28  section 221.0314 by any other provision of this section, must 
 14.29  comply with the rules for hours of service of drivers while 
 14.30  transporting employees of an employer who is directly or 
 14.31  indirectly paying the cost of the transportation. 
 14.32     (b) This subdivision does not apply to: 
 14.33     (1) a local transit commission; 
 14.34     (2) a transit authority created by law; or 
 14.35     (3) persons providing transportation: 
 14.36     (i) in a school bus as defined in section 169.01, 
 15.1   subdivision 6; 
 15.2      (ii) in a Head Start bus as defined in section 169.01, 
 15.3   subdivision 80; 
 15.4      (iii) in a commuter van; 
 15.5      (iv) in an authorized emergency vehicle as defined in 
 15.6   section 169.01, subdivision 5; 
 15.7      (v) in special transportation service certified by the 
 15.8   commissioner under section 174.30; 
 15.9      (vi) that is special transportation service as defined in 
 15.10  section ~~174.29, subdivision 1~~ 174.30, when provided by a 
 15.11  volunteer driver operating a private passenger vehicle as 
 15.12  defined in section 169.01, subdivision 3a; 
 15.13     (vii) in a limousine the service of which is licensed by 
 15.14  the commissioner under section 221.84; or 
 15.15     (viii) in a taxicab, if the fare for the transportation is 
 15.16  determined by a meter inside the taxicab that measures the 
 15.17  distance traveled and displays the fare accumulated. 
 15.18     Sec. 20.  Minnesota Statutes 1996, section 221.0314, 
 15.19  subdivision 1, is amended to read: 
 15.20     Subdivision 1.  [APPLICABILITY.] (a) Intrastate motor 
 15.21  carriers, private carriers, and persons providing intrastate 
 15.22  transportation described in section 221.025, must comply with 
 15.23  the rules incorporated in this section to the extent required by 
 15.24  ~~section~~ sections 221.0252, 221.026, and 221.031.  Every carrier 
 15.25  and its officers, agents, representatives, and employees 
 15.26  responsible for managing, maintaining, equipping, operating, or 
 15.27  driving motor vehicles, or hiring, supervising, training, 
 15.28  assigning, or dispatching drivers, must be instructed in and 
 15.29  comply with the rules incorporated in this section and shall 
 15.30  require that its agents, representatives, drivers, and employees 
 15.31  comply. 
 15.32     (b) In the rules incorporated in subdivisions 2 to 11: 
 15.33     (1) the term "motor carrier" means a carrier required to 
 15.34  comply with this section by section 221.0252, 221.026, or 
 15.35  221.031; 
 15.36     (2) a reference to a federal agency or office means the 
 16.1   Minnesota department of transportation; and 
 16.2      (3) a reference to a federal administrative officer means 
 16.3   the commissioner of the Minnesota department of transportation. 
 16.4      Sec. 21.  Minnesota Statutes 1996, section 221.091, is 
 16.5   amended to read: 
 16.6      221.091 [LIMITATIONS; RELATIONSHIP TO LOCAL REGULATION.] 
 16.7      ~~No provision in~~ Sections 221.011 to 221.291 and 221.84 ~~to~~ 
 16.8   ~~221.85 shall~~ do not authorize the use by ~~any~~ a carrier of 
 16.9   ~~any~~ a public highway in ~~any~~ a city of the first class in 
 16.10  violation of ~~any~~ a charter provision or ordinance of ~~such~~ the 
 16.11  city in effect January 1, 1925, unless ~~and except as such~~ the 
 16.12  charter ~~provisions~~ provision or ordinance ~~may be~~ is repealed 
 16.13  after that date~~; nor shall~~.  In addition, sections 221.011 to 
 16.14  221.291 and 221.84 ~~to 221.85 be construed as in any manner~~ 
 16.15  ~~taking from or curtailing~~ do not (1) curtail the right of ~~any~~ a 
 16.16  city to reasonably regulate or control the routing, parking, 
 16.17  speed or ~~the~~ safety of operation of a motor vehicle operated by 
 16.18  ~~any~~ a carrier under the terms of those sections, ~~or~~ (2) curtail 
 16.19  the general police power of ~~any such~~ the city over its highways~~;~~ 
 16.20  ~~nor shall sections 221.011 to 221.291 and 221.84 to 221.85 be~~ 
 16.21  ~~construed as abrogating~~, or (3) abrogate any provision of 
 16.22  the city's charter ~~of any such city~~ requiring certain conditions 
 16.23  to be complied with before ~~such~~ a carrier can use the highways 
 16.24  of ~~such~~ the city and ~~such~~ these rights and powers ~~herein~~ 
 16.25  ~~stated~~ are ~~hereby~~ expressly reserved and granted to ~~such~~ the 
 16.26  city~~; but~~.  However, no ~~such~~ city shall prohibit or deny the use 
 16.27  of the public highways within its territorial boundaries by ~~any~~ 
 16.28  ~~such~~ a carrier for ~~transportation of~~ transporting passengers or 
 16.29  property received within its boundaries to destinations 
 16.30  beyond ~~such~~ the city's boundaries, or for ~~transportation~~ 
 16.31  ~~of~~ transporting passengers or property from points beyond ~~such~~ 
 16.32  the city's boundaries to destinations within the ~~same~~ the city's 
 16.33  boundaries, or for ~~transportation of~~ transporting passengers or 
 16.34  property from points beyond ~~such~~ the city's boundaries through 
 16.35  ~~such municipality~~ the city to points beyond the city's 
 16.36  boundaries ~~of such municipality, where such operation~~ when the 
 17.1   carrier is operating pursuant to a certificate of ~~convenience~~ 
 17.2   ~~and necessity issued by the commission~~ registration issued under 
 17.3   this chapter or to a permit issued ~~by the commissioner~~ under 
 17.4   section 221.84 ~~or 221.85~~. 
 17.5      Sec. 22.  Minnesota Statutes 1996, section 221.124, is 
 17.6   amended to read: 
 17.7      221.124 [INITIAL MOTOR CARRIER CONTACT PROGRAM.] 
 17.8      Subdivision 1.  [INITIAL MOTOR CARRIER CONTACT.] The 
 17.9   initial motor carrier contact program consists of an initial 
 17.10  contact, for educational purposes, between a motor carrier 
 17.11  required to participate and representatives of the department of 
 17.12  transportation.  The initial contact may be through an 
 17.13  educational seminar or, at the discretion of the department, 
 17.14  through a personal ~~meeting~~ contact with a representative of the 
 17.15  department.  The initial contact must consist of a discussion of 
 17.16  the statutes, rules, and regulations that apply to motor 
 17.17  carriers.  Topics discussed must include:  ~~carrier authority;~~ 
 17.18  ~~the leasing of drivers and vehicles;~~ insurance requirements; 
 17.19  ~~tariffs; annual reports;~~ accident reporting; accident 
 17.20  countermeasures; identification of vehicles; driver 
 17.21  qualifications; maximum hours of service of drivers; the safe 
 17.22  operation of vehicles; equipment, parts, and accessories; and 
 17.23  inspection, repair, and maintenance.  The department shall 
 17.24  provide written documentation of proof of compliance with the 
 17.25  requirements of subdivision 2 and shall give a copy of the 
 17.26  document to the motor carrier. 
 17.27     Subd. 2.  [PARTICIPATION REQUIRED.] A motor carrier that 
 17.28  ~~receives a certificate or permit from~~ first registers with 
 17.29  the ~~board for new authority on or~~ commissioner after ~~September~~ 
 17.30  ~~1, 1991~~ July 1, 1997, shall participate in the initial motor 
 17.31  carrier contact program.  A motor carrier required to 
 17.32  participate in the program must have in attendance at least one 
 17.33  motor carrier official having a substantial interest or control, 
 17.34  directly or indirectly, in or over the operations conducted or 
 17.35  to be conducted under the ~~certificate or permit~~ carrier's 
 17.36  registration. 
 18.1      Subd. 3.  [TIME FOR COMPLIANCE.] A motor carrier required 
 18.2   by subdivision 2 to participate in the program must do so within 
 18.3   90 days of ~~the service date of the order granting the~~ 
 18.4   ~~certificate or permit~~ registering.  Failure to comply with the 
 18.5   requirement of subdivision 2 makes the ~~order granting the~~ 
 18.6   ~~certificate or permit~~ carrier's registration void upon 
 18.7   expiration of the time for compliance. 
 18.8      Sec. 23.  Minnesota Statutes 1996, section 221.131, 
 18.9   subdivision 2, is amended to read: 
 18.10     Subd. 2.  [~~PERMIT~~ MOTOR CARRIERS OF PASSENGERS; ANNUAL 
 18.11  VEHICLE REGISTRATION; FEE.] (a) ~~This subdivision applies only to~~ 
 18.12  ~~holders of household goods mover permits and charter carrier~~ 
 18.13  ~~permits.~~ 
 18.14     ~~(b) The permit holder~~ A motor carrier of passengers shall 
 18.15  pay an annual registration fee of $40 on each vehicle~~, including~~ 
 18.16  ~~pickup and delivery vehicles,~~ operated by the ~~holder~~ carrier 
 18.17  under ~~authority of the permit~~ its certificate of registration 
 18.18  during the 12-month period or fraction of the 12-month 
 18.19  period.  ~~Trailers and semitrailers used by a permit holder in~~ 
 18.20  ~~combination with power units may not be counted as vehicles in~~ 
 18.21  ~~the computation of fees under this section if the permit holder~~ 
 18.22  ~~pays the fees for power units.~~ 
 18.23     ~~(c)~~ (b) The commissioner shall furnish a distinguishing 
 18.24  annual identification card for each vehicle ~~or power unit~~ for 
 18.25  which a fee has been paid.  The identification card must at all 
 18.26  times be carried in the vehicle ~~or power unit~~ to which it has 
 18.27  been assigned.  An identification card may be reassigned to 
 18.28  another vehicle ~~or power unit~~ upon application of the permit 
 18.29  holder and payment of a transfer fee of $10.  An identification 
 18.30  card issued under this section is valid only for the period for 
 18.31  which the ~~permit~~ carrier's certificate of registration is 
 18.32  effective. 
 18.33     ~~(d)~~ (c) A fee of $10 is charged for the replacement of an 
 18.34  unexpired identification card that has been lost.  
 18.35     (d) The proceeds of the fees collected under this 
 18.36  subdivision must be deposited in the trunk highway fund. 
 19.1      Sec. 24.  Minnesota Statutes 1996, section 221.141, 
 19.2   subdivision 1, is amended to read: 
 19.3      Subdivision 1.  [FINANCIAL RESPONSIBILITY OF CARRIERS.] (a) 
 19.4   No motor carrier and no interstate carrier shall operate a 
 19.5   vehicle until it has obtained and has in effect the minimum 
 19.6   amount of financial responsibility required by this section.  
 19.7   Policies of insurance, surety bonds, other types of security, 
 19.8   and endorsements must be continuously in effect and must remain 
 19.9   in effect until canceled.  Before providing transportation, the 
 19.10  motor carrier or interstate carrier shall secure and cause to be 
 19.11  filed with the commissioner and maintain in full effect, a 
 19.12  certificate of insurance in a form required by the commissioner, 
 19.13  evidencing public liability insurance in the amount prescribed.  
 19.14  The insurance must cover injuries and damage to persons or 
 19.15  property resulting from the operation or use of motor vehicles, 
 19.16  regardless of whether each vehicle is specifically described in 
 19.17  the policy.  This insurance does not apply to injuries or death 
 19.18  to the employees of the motor carrier or to property being 
 19.19  transported by the carrier.  ~~The commissioner shall require~~ 
 19.20  ~~cargo insurance for certificated carriers, except those carrying~~ 
 19.21  ~~passengers exclusively.  The commissioner may require a permit~~ 
 19.22  ~~carrier to file cargo insurance when the commissioner deems~~ 
 19.23  ~~necessary to protect the users of the service.~~  
 19.24     (b) Notwithstanding any other provision of this chapter, 
 19.25  the insurance required of a motor carrier of passengers must be 
 19.26  at least that amount required under Code of Federal Regulations, 
 19.27  title 49, part 387.33, as amended. 
 19.28     (c) Notwithstanding any other provision of this chapter, a 
 19.29  motor carrier of passengers is required to keep in full force 
 19.30  and effect and on file with the commissioner a bond with a 
 19.31  corporate surety to be approved by the commissioner in the 
 19.32  amount of $10,000.  The bond must be conditioned on the faithful 
 19.33  performance by the carrier of all passenger transportation 
 19.34  service the carrier agrees to perform in the state and all 
 19.35  obligations imposed by the laws of this state including, but not 
 19.36  limited to, the payment of all taxes, license fees, and 
 20.1   penalties.  The bond must be for the benefit of the state of 
 20.2   Minnesota and any person suffering monetary loss due to the 
 20.3   failure of the carrier to meet the obligations enumerated in 
 20.4   this subdivision.  Proceedings on the forfeiture of the bond 
 20.5   must be commenced in the district court of the county in which 
 20.6   the business premises of the carrier are located. 
 20.7      Sec. 25.  Minnesota Statutes 1996, section 221.172, 
 20.8   subdivision 10, is amended to read: 
 20.9      Subd. 10.  [RETAINED THREE YEARS.] A shipping document or 
 20.10  record described in ~~subdivisions~~ subdivision 2 ~~to 9~~, or a copy 
 20.11  of it, must be retained by the carrier for at least three years 
 20.12  from the date on the shipping document or record.  ~~A carrier may~~ 
 20.13  ~~keep a shipping record described in subdivisions 3 to 9 by any~~ 
 20.14  ~~technology that prevents the alteration, modification, or~~ 
 20.15  ~~erasure of the underlying data and will enable production of an~~ 
 20.16  ~~accurate and unaltered paper copy.~~  A carrier shall keep a 
 20.17  shipping record in a manner that will make it readily accessible 
 20.18  and shall have a means of identifying and producing a legible 
 20.19  paper copy for inspection by the commissioner upon request. 
 20.20     Sec. 26.  [221.178] [MOTOR CARRIERS OF PASSENGERS; CRIMINAL 
 20.21  BACKGROUND CHECK.] 
 20.22     Subdivision 1.  [CARRIER TO CONDUCT CHECK.] A motor carrier 
 20.23  of passengers shall conduct, or cause to be conducted, an 
 20.24  initial criminal record check of a person the carrier hires or 
 20.25  with whom the carrier contracts whose duties include operating a 
 20.26  vehicle used to transport passengers for hire.  This record 
 20.27  check must be completed before the person provides service for 
 20.28  the carrier.  A subsequent criminal record check must be 
 20.29  conducted every three years. 
 20.30     Subd. 2.  [SCOPE OF CHECK.] A criminal record check must 
 20.31  include a review of the state criminal records maintained by the 
 20.32  Minnesota bureau of criminal apprehension for convictions 
 20.33  entered during the five years before the check.  If the 
 20.34  applicant has resided in Minnesota for less than five years, the 
 20.35  check also must include a criminal records check of information 
 20.36  from the state law enforcement agencies in the states where the 
 21.1   person resided during the five years before moving to Minnesota, 
 21.2   and of the national criminal records repository including the 
 21.3   criminal justice data communications network. 
 21.4      Subd. 3.  [RECORDS.] A carrier shall keep a record, 
 21.5   identified by the employee's name, of a criminal record check 
 21.6   conducted under this section.  A record must be made available 
 21.7   to the commissioner upon request. 
 21.8      Sec. 27.  Minnesota Statutes 1996, section 221.185, 
 21.9   subdivision 1, is amended to read: 
 21.10     Subdivision 1.  [GROUNDS FOR SUSPENSION.] Despite the 
 21.11  provisions of section 221.021, ~~authority to operate as~~ a motor 
 21.12  carrier registration issued under ~~sections 221.011 to~~ 
 21.13  ~~221.296~~ section 221.0251 or 221.0252 is suspended without a 
 21.14  hearing, by order of the commissioner, ~~for a period not to~~ 
 21.15  ~~exceed 45 days upon the occurrence of any of the following and~~ 
 21.16  ~~upon notice of suspension as provided in subdivision 2:~~ if the 
 21.17  motor carrier 
 21.18     ~~(a) the motor carrier~~ fails to maintain and file with the 
 21.19  commissioner, the insurance or bond required by ~~sections~~ section 
 21.20  221.141 ~~and 221.296~~ and rules ~~of the commissioner;~~ adopted under 
 21.21  that section 
 21.22     ~~(b) the motor carrier fails to renew permits as required by~~ 
 21.23  ~~section 221.131;~~ 
 21.24     ~~(c) the motor carrier fails to pay annual vehicle~~ 
 21.25  ~~registration fees or renew permits as required by sections~~ 
 21.26  ~~221.071, 221.131, and 221.296; or~~ 
 21.27     ~~(d) the motor carrier fails to maintain in good standing a~~ 
 21.28  ~~protective agent's or private detective's license required under~~ 
 21.29  ~~section 221.121, subdivision 6g, paragraph (b), or 221.153,~~ 
 21.30  ~~subdivision 3~~ or pay an administrative penalty under section 
 21.31  221.036. 
 21.32     Sec. 28.  Minnesota Statutes 1996, section 221.185, is 
 21.33  amended by adding a subdivision to read: 
 21.34     Subd. 2a.  [NOTICE OF SUSPENSION; EFFECTIVE DATE.] The 
 21.35  commissioner shall issue a notice of suspension if one of the 
 21.36  conditions described in subdivision 1 occurs.  The notice must 
 22.1   give the reason for suspension and must be sent to the last 
 22.2   known address of the motor carrier by certified mail, return 
 22.3   receipt requested.  A suspension is effective two days after a 
 22.4   notice is mailed. 
 22.5      Sec. 29.  Minnesota Statutes 1996, section 221.185, 
 22.6   subdivision 3, is amended to read: 
 22.7      Subd. 3.  [RESCIND SUSPENSION.] If the motor carrier 
 22.8   complies with the requirements of this chapter ~~within 45 days~~ 
 22.9   ~~after the date of suspension and pays the required fees,~~ 
 22.10  ~~including a late vehicle registration fee of $5 for each vehicle~~ 
 22.11  ~~registered~~, the commissioner shall rescind the suspension unless 
 22.12  the carrier's registration has expired.  If a motor carrier of 
 22.13  property fails to comply within one year of the effective date 
 22.14  of a suspension, the carrier's registration is canceled.  
 22.15     Sec. 30.  Minnesota Statutes 1996, section 221.291, 
 22.16  subdivision 4, is amended to read: 
 22.17     Subd. 4.  [OPERATING WITHOUT CERTIFICATE ~~OR PERMIT~~ OF 
 22.18  REGISTRATION.] A person who operates a motor carrier without 
 22.19  ~~obtaining required certificates or permits to operate as~~ 
 22.20  ~~required by this chapter~~ first registering under section 
 22.21  221.0251 or 221.0252 is guilty of a misdemeanor, and upon 
 22.22  conviction shall be fined not less than the maximum fine which 
 22.23  may be imposed for a misdemeanor for each violation.  
 22.24     Sec. 31.  Minnesota Statutes 1996, section 256B.04, 
 22.25  subdivision 12, is amended to read: 
 22.26     Subd. 12.  Place limits on the types of services covered by 
 22.27  medical assistance, the frequency with which the same or similar 
 22.28  services may be covered by medical assistance for an individual 
 22.29  recipient, and the amount paid for each covered service.  The 
 22.30  state agency shall promulgate rules establishing maximum 
 22.31  reimbursement rates for emergency and nonemergency 
 22.32  transportation.  
 22.33     The rules shall provide:  
 22.34     (a) An opportunity for all recognized transportation 
 22.35  providers to be reimbursed for nonemergency transportation 
 22.36  consistent with the maximum rates established by the agency; 
 23.1      (b) Reimbursement of public and private nonprofit providers 
 23.2   serving the handicapped population generally at reasonable 
 23.3   maximum rates that reflect the cost of providing the service 
 23.4   regardless of the fare that might be charged by the provider for 
 23.5   similar services to individuals other than those receiving 
 23.6   medical assistance or medical care under this chapter; and 
 23.7      (c) Reimbursement for each additional passenger carried on 
 23.8   a single trip at a substantially lower rate than the first 
 23.9   passenger carried on that trip.  
 23.10     The commissioner shall encourage providers reimbursed under 
 23.11  this chapter to coordinate their operation with similar services 
 23.12  that are operating in the same community.  To the extent 
 23.13  practicable, the commissioner shall encourage eligible 
 23.14  individuals to utilize less expensive providers capable of 
 23.15  serving their needs.  
 23.16     For the purpose of this subdivision and section 256B.02, 
 23.17  subdivision 8, ~~and effective on January 1, 1981,~~ "recognized 
 23.18  provider of transportation services" means ~~an operator~~ a 
 23.19  provider of special transportation service as defined in section 
 23.20  ~~174.29~~ 174.30 that has been issued a current certificate of 
 23.21  compliance with operating standards of the commissioner of 
 23.22  transportation or, if those standards do not apply to 
 23.23  the ~~operator~~ provider, that the agency finds is able to provide 
 23.24  the required transportation in a safe and reliable 
 23.25  manner.  ~~Until January 1, 1981, "recognized transportation~~ 
 23.26  ~~provider" includes an operator of special transportation service~~ 
 23.27  ~~that the agency finds is able to provide the required~~ 
 23.28  ~~transportation in a safe and reliable manner.~~  
 23.29     Sec. 32.  [CONVERSION OF CERTIFICATES.] 
 23.30     A motor carrier with a valid certificate or permit issued 
 23.31  by the transportation regulation board, public service 
 23.32  commission, public utilities commission, or commissioner of 
 23.33  transportation before July 1, 1997, is deemed to have registered 
 23.34  under Minnesota Statutes, section 221.0252, and the commissioner 
 23.35  of transportation shall issue a certificate of registration to 
 23.36  the carrier. 
 24.1      Sec. 33.  [APPROPRIATION.] 
 24.2      $115,000 for the fiscal year ending June 30, 1998, and 
 24.3   $115,000 for the fiscal year ending June 30, 1999, are 
 24.4   appropriated from the trunk highway fund to the commissioner of 
 24.5   transportation for the purposes of sections 1 to 32. 
 24.6      Sec. 34.  [REPEALER.] 
 24.7      Minnesota Statutes 1996, sections 168.011, subdivision 36; 
 24.8   168.1281; 174.30, subdivision 1; 221.011, subdivisions 2b, 8, 9, 
 24.9   10, 12, 14, 20, 21, 24, 25, 28, 32, 34, 35, 36, 38, 39, 40, 41, 
 24.10  44, 45, and 46; 221.0313; 221.0315; 221.041; 221.051; 221.061; 
 24.11  221.071; 221.072; 221.081; 221.101; 221.111; 221.121; 221.122; 
 24.12  221.123; 221.131, subdivisions 1, 2a, 3, 4, and 5; 221.132; 
 24.13  221.141, subdivision 6; 221.151; 221.152; 221.153; 221.161; 
 24.14  221.165; 221.171; 221.172, subdivisions 3, 4, 5, 6, 7, 8, and 9; 
 24.15  221.185, subdivisions 2, 3a, 4, 5, 5a, and 9; 221.241; 221.281; 
 24.16  221.291, subdivision 5; 221.293; 221.296; 221.54; 221.55; and 
 24.17  221.85, are repealed. 
 24.18     Sec. 35.  [EFFECTIVE DATE.] 
 24.19     Sections 1 to 34 are effective July 1, 1997.