1.1                          A bill for an act
  1.2             relating to transportation; transferring transit 
  1.3             planning, coordination, financing, and operations from 
  1.4             the metropolitan council to the department of 
  1.5             transportation; providing for light rail transit; 
  1.6             making technical changes; appropriating money; 
  1.7             amending Minnesota Statutes 1994, sections 16B.58, 
  1.8             subdivision 7; 169.781, subdivision 1; 169.791, 
  1.9             subdivision 5; 169.792, subdivision 11; 174.06, 
  1.10            subdivision 1; 174.21; 174.22, subdivision 1, and by 
  1.11            adding subdivisions; 174.23, subdivision 1, and by 
  1.12            adding a subdivision; 174.32, subdivision 2; 174.35; 
  1.13            216C.15, subdivision 1; 221.022; 221.025; 221.031, 
  1.14            subdivision 3a; 221.041, subdivision 4; 221.071, 
  1.15            subdivision 1; 275.066; 296.02, subdivision 1a; 
  1.16            296.025, subdivision 1a; 297A.25, subdivisions 7 and 
  1.17            11; 297B.09, subdivision 1; 352.01, subdivisions 2a 
  1.18            and 2b; 352D.02, subdivision 1; 353.64, subdivision 
  1.19            7a; 473.125; 473.146, subdivision 3; 473.446, 
  1.20            subdivisions 1, 2, 3, and 8; and 473.553, subdivision 
  1.21            9; proposing coding for new law in Minnesota Statutes, 
  1.22            chapter 174; repealing Minnesota Statutes 1994, 
  1.23            sections 473.121, subdivisions 16, 18, 18a, 19, 20, 
  1.24            and 20a; 473.371; 473.375; 473.382; 473.384; 473.385; 
  1.25            473.386; 473.387; 473.388; 473.39; 473.391; 473.392; 
  1.26            473.394; 473.399; 473.3993; 473.3994; 473.3997; 
  1.27            473.3998; 473.405; 473.4051; 473.407; 473.408; 
  1.28            473.409; 473.411; 473.415; 473.416; 473.418; 473.42; 
  1.29            473.436; 473.446, subdivision 1a; and 473.449. 
  1.30  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.31                             ARTICLE 1
  1.32                  METROPOLITAN TRANSIT AMENDMENTS  
  1.33     Section 1.  Minnesota Statutes 1994, section 174.21, is 
  1.34  amended to read: 
  1.35     174.21 [PUBLIC TRANSIT ASSISTANCE AND TRANSPORTATION 
  1.36  MANAGEMENT; PURPOSE.] 
  1.37     It is the purpose of sections 174.21 to 174.27 and 174.70 
  2.1   to 174.717 to: 
  2.2      (a) provide access to transit for persons who have no 
  2.3   alternative mode of transit available; 
  2.4      (b) increase the efficiency and productivity of public 
  2.5   transit systems; 
  2.6      (c) alleviate problems of automobile congestion and energy 
  2.7   consumption and promote desirable land use where such activities 
  2.8   are cost-effective; 
  2.9      (d) maintain a state commitment to public transportation; 
  2.10  and 
  2.11     (e) meet the needs of individual transit systems to the 
  2.12  extent they are consistent with the other objectives stated 
  2.13  above.  
  2.14     Sec. 2.  Minnesota Statutes 1994, section 174.22, 
  2.15  subdivision 1, is amended to read: 
  2.16     Subdivision 1.  [SCOPE.] For the purposes of sections 
  2.17  174.21 to 174.27 and 174.70 to 174.717, the following terms have 
  2.18  the meaning given them. 
  2.19     Sec. 3.  Minnesota Statutes 1994, section 174.22, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 5a.  [OPERATOR.] "Operator" means any person engaged 
  2.22  or seeking to engage in the business of providing regular route 
  2.23  public transit. 
  2.24     Sec. 4.  Minnesota Statutes 1994, section 174.22, is 
  2.25  amended by adding a subdivision to read: 
  2.26     Subd. 7a.  [PUBLIC TRANSIT SYSTEM OR TRANSIT SYSTEM.] 
  2.27  "Public transit system" or "transit system" means, without 
  2.28  limitation, any combination of property, structures, 
  2.29  improvements, equipment, plants, parking or other facilities, 
  2.30  and rights, used or useful for the purposes of public transit. 
  2.31     Sec. 5.  Minnesota Statutes 1994, section 174.23, 
  2.32  subdivision 1, is amended to read: 
  2.33     Subdivision 1.  [GENERAL.] The commissioner shall have all 
  2.34  powers necessary and convenient to carry out the provisions of 
  2.35  sections 174.21 to 174.27 and 174.70 to 174.717, including the 
  2.36  power to:  (a) review applications for financial assistance, 
  3.1   execute contracts, and obligate and expend program funds, upon 
  3.2   conditions and limitations as the commissioner deems necessary 
  3.3   for purposes of program and project implementation, operation, 
  3.4   and evaluation, (b) accept and disburse federal funds available 
  3.5   for the purposes of sections 174.21 to 174.27 and 174.70 to 
  3.6   174.717, and (c) act upon request as the designated agent of any 
  3.7   eligible person for the receipt and disbursal of federal funds.  
  3.8   The commissioner shall perform the duties and exercise the 
  3.9   powers under sections 174.21 to 174.27 and 174.70 to 174.717, in 
  3.10  coordination with and in furtherance of statewide, regional, and 
  3.11  local transportation plans and transportation development 
  3.12  programs.  The commissioner shall set guidelines for financial 
  3.13  assistance under the public transit subsidy program.  The 
  3.14  commissioner shall present any proposed guidelines regarding 
  3.15  public transit financial assistance to a legislative committee 
  3.16  composed of equal numbers appointed by the house local and urban 
  3.17  affairs and senate transportation committees.  The commissioner 
  3.18  shall not implement any new guidelines regarding public transit 
  3.19  financial assistance, between the period January 1, 1981 to 
  3.20  April 15, 1982, without the prior approval of that committee.  
  3.21     Sec. 6.  Minnesota Statutes 1994, section 174.23, is 
  3.22  amended by adding a subdivision to read: 
  3.23     Subd. 9.  [METROPOLITAN TRANSIT PLANNING AND 
  3.24  OPERATIONS.] The commissioner shall provide for transit 
  3.25  planning, coordination, financing, and operations in the 
  3.26  metropolitan area as provided in sections 174.70 to 174.717. 
  3.27     Sec. 7.  Minnesota Statutes 1994, section 174.32, 
  3.28  subdivision 2, is amended to read: 
  3.29     Subd. 2.  [TRANSIT ASSISTANCE FUND; DISTRIBUTION.] The 
  3.30  transit assistance fund receives money distributed under section 
  3.31  297B.09.  Eighty percent of the receipts of the fund must be 
  3.32  placed into a metropolitan account for distribution to 
  3.33  recipients located in the metropolitan area and 20 percent into 
  3.34  a separate account for distribution to recipients located 
  3.35  outside of the metropolitan area.  ~~Except as otherwise provided~~ 
  3.36  ~~in this subdivision, the metropolitan council is responsible for~~ 
  4.1   ~~distributing assistance from the metropolitan account, and the~~ 
  4.2   ~~commissioner is responsible for distributing assistance from the~~ 
  4.3   ~~other account.~~  
  4.4      Sec. 8.  Minnesota Statutes 1994, section 174.35, is 
  4.5   amended to read: 
  4.6      174.35 [LIGHT RAIL TRANSIT.] 
  4.7      Subdivision 1.  [GENERAL REQUIREMENTS.] (a) The 
  4.8   commissioner of transportation ~~may exercise the powers granted~~ 
  4.9   ~~in this chapter and chapter 473, as necessary, to plan, design,~~ 
  4.10  ~~acquire, construct, and equip light rail transit facilities in~~ 
  4.11  ~~the metropolitan area as defined in section 473.121, subdivision~~ 
  4.12  ~~2.~~ shall adopt a regional light rail transit plan to ensure that 
  4.13  light rail transit facilities in the metropolitan area will be 
  4.14  acquired, developed, owned, and capable of operation in an 
  4.15  efficient, cost-effective, and coordinated manner as an 
  4.16  integrated and unified system on a multicounty basis in 
  4.17  coordination with buses and other transportation modes and 
  4.18  facilities.  To the extent practicable, the commissioner shall 
  4.19  incorporate into its plan appropriate elements of the plans of 
  4.20  regional railroad authorities in order to avoid duplication of 
  4.21  effort. 
  4.22     (b) The regional plan required by this section must be 
  4.23  adopted before the commissioner may begin construction of light 
  4.24  rail transit facilities and before the commissioner may expend 
  4.25  funds appropriated or obtained through bonding for constructing 
  4.26  light rail transit facilities.  Following adoption of the 
  4.27  regional plan, each regional railroad authority and the 
  4.28  commissioner shall act in conformity with the plan.  The 
  4.29  commissioner shall prepare or amend the final design plans as 
  4.30  necessary to make the plans consistent with the regional plan. 
  4.31     (c) Throughout the development and implementation of the 
  4.32  plan, the commissioner shall contract for or otherwise obtain 
  4.33  engineering services to ensure that the plan adequately 
  4.34  addresses the technical aspects of light rail transit.  
  4.35     Sec. 9.  [174.351] [LIGHT RAIL TRANSIT FACILITY PLANS; 
  4.36  DEFINITIONS.] 
  5.1      Subdivision 1.  [APPLICATION.] The definitions in this 
  5.2   section apply to sections 174.35 to 174.355. 
  5.3      Subd. 2.  [PRELIMINARY DESIGN PLAN.] (a) "Preliminary 
  5.4   design plan" means a light rail transit plan that identifies: 
  5.5      (1) preliminary plans for the physical design of 
  5.6   facilities, including location, length, and termini of routes; 
  5.7   general dimension, elevation, alignment, and character of routes 
  5.8   and crossings; whether the track is elevated, on the surface, or 
  5.9   below ground; approximate station locations; and related park 
  5.10  and ride, parking, and other transportation facilities; and a 
  5.11  plan for access by persons with disabilities; and 
  5.12     (2) preliminary plans for intermodal coordination with bus 
  5.13  operations and routes; ridership; capital costs; operating costs 
  5.14  and revenues, and sources of funds for operating subsidies; 
  5.15  funding for final design, construction, and operation; and an 
  5.16  implementation method. 
  5.17     (b) The preliminary design plan includes the preliminary or 
  5.18  draft environmental impact statement for the light rail transit 
  5.19  facilities proposed. 
  5.20     Subd. 3.  [PRELIMINARY ENGINEERING PLAN.] "Preliminary 
  5.21  engineering plan" means a light rail transit plan that includes 
  5.22  the items in the preliminary design plan for the facilities 
  5.23  proposed for construction, but with greater detail and 
  5.24  specificity to satisfy final environmental impact statement 
  5.25  requirements. 
  5.26     Subd. 4.  [FINAL DESIGN PLAN.] (a) "Final design plan" 
  5.27  means a light rail transit plan that includes the items in the 
  5.28  preliminary design plan and the preliminary engineering plan for 
  5.29  the facilities proposed, but with greater detail and specificity 
  5.30  needed for construction.  
  5.31     (b) The final design plan must include, at a minimum:  
  5.32     (1) final plans for the physical design of facilities, 
  5.33  including the right-of-way definition; environmental impacts and 
  5.34  mitigation measures; intermodal coordination with bus operations 
  5.35  and routes; and civil engineering plans for vehicles, track, 
  5.36  stations, parking, and access, including access by persons with 
  6.1   disabilities; and 
  6.2      (2) final plans for civil engineering for electrification, 
  6.3   communication, and other similar facilities; operational rules, 
  6.4   procedures, and strategies; capital costs; ridership; operating 
  6.5   costs and revenues, and sources of funds for operating 
  6.6   subsidies; financing for construction and operation; an 
  6.7   implementation method; and other similar matters.  
  6.8      (c) The final design plan must be stated with sufficient 
  6.9   particularity and detail to allow the proposer to begin the 
  6.10  acquisition and construction of operable facilities.  If a 
  6.11  turn-key implementation method is proposed instead of civil 
  6.12  engineering plans, the final design plan must state detailed 
  6.13  design criteria and performance standards for the facilities. 
  6.14     Subd. 5.  [METROPOLITAN AREA.] "Metropolitan area" has the 
  6.15  meaning given it in section 473.121. 
  6.16     Sec. 10.  [174.352] [LIGHT RAIL TRANSIT; DESIGN PLANS.] 
  6.17     Subdivision 1.  [PRELIMINARY DESIGN PLANS; PUBLIC HEARING.] 
  6.18  Before final design plans are prepared for a light rail transit 
  6.19  facility, the commissioner of transportation and any regional 
  6.20  railroad authority in whose jurisdiction a line is located shall 
  6.21  hold a public hearing on the physical design component of the 
  6.22  preliminary design plans.  The commissioner and authority shall 
  6.23  provide appropriate public notice of the hearing and publicity 
  6.24  to ensure that affected parties have an opportunity to present 
  6.25  their views at the hearing.  The commissioner shall summarize 
  6.26  the proceedings and testimony and maintain the record of a 
  6.27  hearing held under this section, including any written 
  6.28  statements submitted. 
  6.29     Subd. 2.  [PRELIMINARY DESIGN PLANS; LOCAL APPROVAL.] (a) 
  6.30  At least 30 days before the hearing under subdivision 1, the 
  6.31  commissioner and any regional railroad authority in whose 
  6.32  jurisdiction a line is located shall submit the physical design 
  6.33  component of the preliminary design plans to the governing body 
  6.34  of each statutory and home rule charter city, county, and town 
  6.35  in which the route is proposed to be located.  The city, county, 
  6.36  or town shall hold a public hearing, except that a county board 
  7.1   need not hold a hearing if the county board membership is 
  7.2   identical to the membership of the regional railroad authority 
  7.3   submitting the plan for review.  
  7.4      (b) Within 45 days after the hearing under subdivision 1, 
  7.5   the city, county, or town shall review and approve or disapprove 
  7.6   the plans for the route to be located in the city, county, or 
  7.7   town.  A local unit of government that disapproves the plans 
  7.8   shall describe specific amendments to the plans that, if 
  7.9   adopted, would cause the local unit to withdraw its 
  7.10  disapproval.  Failure to approve or disapprove the plans in 
  7.11  writing within 45 days after the hearing is deemed to be 
  7.12  approval, unless an extension of time is agreed to by the city, 
  7.13  county, or town, the commissioner, and the authority. 
  7.14     Subd. 3.  [PRELIMINARY DESIGN PLANS; COUNCIL REFERRAL.] (a) 
  7.15  If the governing body of one or more cities, counties, or towns 
  7.16  disapproves the preliminary design plans within the period 
  7.17  allowed under subdivision 2, the commissioner and any regional 
  7.18  railroad authority in whose jurisdiction a line is located may 
  7.19  refer the plans, along with any comments of local jurisdictions, 
  7.20  to the metropolitan council.  The council shall hold a hearing 
  7.21  on the plans, giving the commissioner, the authority, any 
  7.22  disapproving local governmental units, and other persons an 
  7.23  opportunity to present their views on the plans. 
  7.24     (b) The council may conduct an independent study and may 
  7.25  mediate and attempt to resolve disagreements about the plans. 
  7.26     (c) Within 90 days after the referral, the council shall 
  7.27  review the plans submitted by the commissioner and the authority 
  7.28  and shall decide what amendments to the plans, if any, must be 
  7.29  made to accommodate the objections presented by the disapproving 
  7.30  local governmental units.  The commissioner and the authority 
  7.31  shall make the amendments to the plans before continuing the 
  7.32  planning and designing process.  
  7.33     Subd. 4.  [FINAL DESIGN PLANS.] (a) Before beginning 
  7.34  construction, the commissioner shall submit the physical design 
  7.35  component of final design plans to the governing body of each 
  7.36  statutory and home rule charter city, county, and town in which 
  8.1   the route is proposed to be located.  Within 60 days after the 
  8.2   submission of the plans, the city, county, or town shall review 
  8.3   and approve or disapprove the plans for the route located in the 
  8.4   city, county, or town.  A local unit of government that 
  8.5   disapproves the plans shall describe specific amendments to the 
  8.6   plans that, if adopted, would cause the local unit to withdraw 
  8.7   its disapproval.  Failure to approve or disapprove the plans in 
  8.8   writing within the time period is deemed to be approval, unless 
  8.9   an extension is agreed to by the city, county, or town and the 
  8.10  commissioner.  
  8.11     (b) If the governing body of one or more cities, counties, 
  8.12  or towns disapproves the plans within the period allowed under 
  8.13  paragraph (a), the commissioner may refer the plans, along with 
  8.14  any comments of the local governments, to the metropolitan 
  8.15  council.  The council shall review the final design plans under 
  8.16  the same procedure and with the same effect as provided in 
  8.17  subdivision 3 for preliminary design plans. 
  8.18     Subd. 5.  [COUNCIL REVIEW.] Before proceeding with 
  8.19  construction of a light rail transit facility, the commissioner 
  8.20  shall submit preliminary and final design plans to the 
  8.21  metropolitan council.  The council shall review the plans for 
  8.22  consistency with the council's development guide and approve the 
  8.23  plans. 
  8.24     Subd. 6.  [METROPOLITAN SIGNIFICANCE.] This section does 
  8.25  not diminish or replace the authority of the council under 
  8.26  section 473.173. 
  8.27     Subd. 7.  [LIGHT RAIL TRANSIT OPERATING COSTS.] (a) Before 
  8.28  submitting an application for federal assistance for light rail 
  8.29  transit facilities in the metropolitan area, the applicant must 
  8.30  provide to the commissioner estimates of the amount of operating 
  8.31  subsidy that will be required to operate light rail transit in 
  8.32  the corridor to which the federal assistance would be applied.  
  8.33  The information provided to the commissioner must indicate the 
  8.34  amount of operating subsidy estimated to be required in each of 
  8.35  the first ten years of operation of the light rail transit 
  8.36  facility. 
  9.1      (b) The commissioner shall review and evaluate the 
  9.2   information provided under paragraph (a) with regard to the 
  9.3   effect of operating the light rail transit facility on the 
  9.4   currently available mechanisms for financing transit in the 
  9.5   metropolitan area. 
  9.6      (c) The commissioner shall present the evaluation to the 
  9.7   transportation and taxes committees of the house and senate, to 
  9.8   the appropriations committee of the house, to the finance 
  9.9   committee of the senate, to the local government and 
  9.10  metropolitan affairs committee of the house, and to the 
  9.11  metropolitan affairs committee of the senate. 
  9.12     Subd. 8.  [CORRIDOR MANAGEMENT COMMITTEE.] (a) The 
  9.13  commissioner shall establish a corridor management committee to 
  9.14  advise the commissioner in the design and construction of light 
  9.15  rail transit in each corridor to be constructed.  The corridor 
  9.16  management committee shall consist of the members of the light 
  9.17  rail transit joint powers board established under section 
  9.18  174.354 and one representative from each city in which the 
  9.19  corridor is located.  Additionally, the commissioner of 
  9.20  transportation and three representatives of the metropolitan 
  9.21  council shall each appoint a member to the committee.  For the 
  9.22  corridor between Minneapolis and St. Paul, the University of 
  9.23  Minnesota shall appoint one member to the committee.  A member 
  9.24  representing the metropolitan council shall chair the committee. 
  9.25     (b) The corridor management committee shall advise the 
  9.26  commissioner of transportation and any regional railroad 
  9.27  authority in whose jurisdiction a line is located on issues 
  9.28  relating to the alternatives analysis, environmental review, 
  9.29  preliminary design, preliminary engineering, final design, 
  9.30  implementation method, and construction of light rail transit.  
  9.31     Subd. 9.  [REGIONAL RAILROAD AUTHORITY REVIEW.] (a) The 
  9.32  commissioner shall submit to each regional rail authority in 
  9.33  which the corridor is located, for review and approval:  
  9.34     (1) preliminary design and preliminary engineering plans; 
  9.35  and 
  9.36     (2) final design plans.  
 10.1      (b) The commissioner shall submit major contract changes 
 10.2   during construction to each regional rail authority in which the 
 10.3   corridor is located for review and comment. 
 10.4      Subd. 10.  [ALTERNATIVES ANALYSIS; ENVIRONMENTAL REVIEW.] 
 10.5   For light rail transit lines to be constructed in the 
 10.6   metropolitan area, the commissioner and any regional railroad 
 10.7   authority in whose jurisdiction a line is to be constructed 
 10.8   shall jointly prepare an alternatives analysis, the 
 10.9   environmental review documents required, and the preliminary 
 10.10  engineering plan.  The council must approve the design for the 
 10.11  alternatives analysis and the completed alternatives analysis.  
 10.12  The department of transportation shall be the responsible 
 10.13  governmental unit. 
 10.14     Subd. 11.  [DISPUTE RESOLUTION.] In the event of a dispute 
 10.15  between any of the parties arising from the parties' respective 
 10.16  authority and responsibility under this section or section 
 10.17  174.354, the dispute must be submitted to the metropolitan 
 10.18  council for final resolution by any party to the dispute.  This 
 10.19  process must allow the parties to provide evidence and testimony 
 10.20  in support of their positions. 
 10.21     Sec. 11.  [174.353] [FEDERAL FUNDING; LIGHT RAIL TRANSIT.] 
 10.22     (a) Upon completing the alternatives analysis and draft 
 10.23  environmental impact statement for the central corridor transit 
 10.24  improvement project, the commissioner of transportation and any 
 10.25  affected regional rail authority may prepare a joint application 
 10.26  for federal assistance for light rail transit facilities in the 
 10.27  metropolitan area.  
 10.28     (b) Until the application described in paragraph (a) is 
 10.29  submitted, no political subdivision in the metropolitan area may 
 10.30  on its own apply for federal assistance for light rail transit 
 10.31  planning or construction. 
 10.32     Sec. 12.  [174.354] [LIGHT RAIL TRANSIT JOINT POWERS 
 10.33  BOARD.] 
 10.34     A light rail transit joint powers board is formed under 
 10.35  section 471.59 consisting of one voting member from the regional 
 10.36  rail authorities of Hennepin, Ramsey, Anoka, Washington, Dakota, 
 11.1   Scott, and Carver counties. 
 11.2      The board shall review and approve (1) light rail transit 
 11.3   system standards to be used by the commissioner of 
 11.4   transportation in designing and building a light rail transit 
 11.5   facility, (2) the plan for community involvement, and (3) the 
 11.6   marketing program.  The board shall advise the corridor 
 11.7   management committee established pursuant to section 174.352, 
 11.8   subdivision 8, and the commissioner on the method of 
 11.9   implementation.  All members of the board must be members of the 
 11.10  corridor management committee established pursuant to section 
 11.11  174.352, subdivision 8. 
 11.12     Sec. 13.  [174.355] [LIGHT RAIL TRANSIT OPERATION.] 
 11.13     The commissioner of transportation shall operate light rail 
 11.14  transit facilities and services upon completion of construction 
 11.15  of the facilities and the commencement of revenue service using 
 11.16  the facilities.  The commissioner shall not commence revenue 
 11.17  service until after an appropriate period of acceptance testing 
 11.18  to ensure satisfactory performance.  In assuming the operation 
 11.19  of the system, the commissioner shall comply with section 
 11.20  174.714.  The commissioner shall coordinate operation of the 
 11.21  light rail transit system with bus service to avoid duplication 
 11.22  of service on a route served by light rail transit and to ensure 
 11.23  the widest possible access to light rail transit lines in both 
 11.24  suburban and urban areas by means of a feeder bus system.  
 11.25     Sec. 14.  [174.70] [METROPOLITAN AREA TRANSIT PLANNING AND 
 11.26  OPERATIONS.] 
 11.27     Subdivision 1.  [GENERAL.] The commissioner of 
 11.28  transportation shall provide for transit planning and operations 
 11.29  in the metropolitan area.  For purposes of sections 174.70 to 
 11.30  174.717: 
 11.31     (1) "metropolitan area" has the meaning given it in section 
 11.32  473.121; and 
 11.33     (2) "city" includes statutory and home rule charter cities. 
 11.34     Subd. 2.  [RIDESHARING.] The commissioner shall administer 
 11.35  a ridesharing program in the metropolitan area.  
 11.36     Subd. 3.  [PROGRAM ASSISTANCE.] The commissioner shall 
 12.1   offer, use, and apply its services to assist and advise transit 
 12.2   providers in the metropolitan transit area in the planning, 
 12.3   promotion, development, operation, and evaluation of programs 
 12.4   and projects undertaken or proposed to be undertaken by contract 
 12.5   with the commissioner, and shall seek out and select recipients 
 12.6   of this assistance and advice.  
 12.7      Subd. 4.  [FINANCIAL ASSISTANCE.] The commissioner may 
 12.8   provide financial assistance to public transit providers as 
 12.9   provided in sections 174.70 to 174.717. 
 12.10     No political subdivision within the metropolitan area may 
 12.11  apply for federal transit assistance unless its application has 
 12.12  been submitted to and approved by the commissioner. 
 12.13     Subd. 5.  [PERFORMANCE STANDARDS FOR FINANCIAL ASSISTANCE.] 
 12.14  The commissioner may establish performance standards for 
 12.15  recipients of financial assistance. 
 12.16     Subd. 6.  [COORDINATION.] The commissioner shall coordinate 
 12.17  transit operations within the metropolitan area and shall 
 12.18  establish a transit information program to provide transit users 
 12.19  with accurate information on transit schedules and service. 
 12.20     Sec. 15.  [174.701] [LOCAL PLANNING AND DEVELOPMENT 
 12.21  PROGRAM.] 
 12.22     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
 12.23  transportation shall establish a program to ensure participation 
 12.24  by representatives of local government units and the 
 12.25  coordination of the planning and development of transit by local 
 12.26  government units.  The commissioner shall encourage the 
 12.27  establishment of local transit planning and development boards 
 12.28  by local governments for the purpose of:  
 12.29     (1) identifying service needs and objectives; 
 12.30     (2) preparing, or advising and assisting local units of 
 12.31  government in preparing, the transit study and service plan 
 12.32  required by section 174.702; and 
 12.33     (3) preparing or advising the commissioner in the review of 
 12.34  applications for assistance under section 174.702.  
 12.35     Subd. 2.  [ASSISTANCE.] The commissioner may provide local 
 12.36  boards with whatever assistance the commissioner deems necessary 
 13.1   and appropriate.  
 13.2      Sec. 16.  [174.702] [CONTRACTS.] 
 13.3      Subdivision 1.  [CONTRACTS REQUIRED.] The commissioner of 
 13.4   transportation shall contract with eligible recipients for 
 13.5   financial assistance to provide transit service within the 
 13.6   metropolitan area.  The commissioner may not give financial 
 13.7   assistance to a transit provider without first having executed a 
 13.8   contract. 
 13.9      Subd. 2.  [ELIGIBILITY FOR FINANCIAL ASSISTANCE.] To be 
 13.10  eligible to receive financial assistance by contract under this 
 13.11  section, a recipient must be:  
 13.12     (1) a county, city, or town, or combination of them, or a 
 13.13  public authority organized and existing pursuant to chapter 
 13.14  398A, providing financial assistance to or providing or 
 13.15  operating public transit; or 
 13.16     (2) a private provider of public transit.  
 13.17     Subd. 3.  [APPLICATIONS.] The commissioner shall establish 
 13.18  procedures and standards for review and approval of applications 
 13.19  for financial assistance under this section.  An applicant shall 
 13.20  provide the commissioner with the financial and other 
 13.21  information the commissioner requires.  The commissioner may 
 13.22  specify procedures, including public hearing requirements, to be 
 13.23  followed by applicants that are cities, towns, or counties, or 
 13.24  combinations of them, in conducting transit studies and 
 13.25  formulating service plans under subdivisions 4 and 5.  
 13.26     Subd. 4.  [TRANSIT STUDY.] (a) The commissioner shall 
 13.27  require that prior to applying for financial assistance by 
 13.28  contract under subdivision 2, clause (1), the applicant must 
 13.29  prepare and submit a transit study that includes the following 
 13.30  elements: 
 13.31     (1) a determination of existing and future transit needs 
 13.32  within the area to be served, and an assessment of the adequacy 
 13.33  of existing service to meet the needs; 
 13.34     (2) an assessment of the level and type of service required 
 13.35  to meet unmet needs; 
 13.36     (3) an assessment of existing and future resources 
 14.1   available for financing transit service; and 
 14.2      (4) the type or types of any new government arrangements or 
 14.3   agreements needed to provide adequate service.  
 14.4      (b) The transit study for any applicant must be conducted 
 14.5   by the commissioner. 
 14.6      Subd. 5.  [SERVICE PLAN.] (a) Before contracting with an 
 14.7   eligible recipient, the commissioner shall require the 
 14.8   submission of a service plan that includes the following 
 14.9   elements:  
 14.10     (1) a description of the service proposed for financial 
 14.11  assistance, including vehicles, routes, and schedules; 
 14.12     (2) an assessment of the extent to which the proposed 
 14.13  service meets the needs as determined by the transit study; 
 14.14     (3) a description of the contract administration and review 
 14.15  process if the operation of the proposed service is to be done 
 14.16  by a private contractor; 
 14.17     (4) a description of the amount required to establish and 
 14.18  operate the proposed service and the proposed sources of the 
 14.19  required amount including operating revenue, other local 
 14.20  sources, and assistance from the commissioner and from federal 
 14.21  sources; 
 14.22     (5) the fare structure of the proposed service; and 
 14.23     (6) projections of system usage. 
 14.24     (b) The commissioner may specify procedures, including 
 14.25  public hearing requirements, to be followed by applicants that 
 14.26  are cities, towns, or counties, or combinations of them, in 
 14.27  conducting transit studies and formulating service plans.  
 14.28     Subd. 6.  [FINANCIAL ASSISTANCE FOR CERTAIN PROVIDERS.] (a) 
 14.29  The commissioner shall provide financial assistance to 
 14.30  recipients who were receiving assistance by contract with the 
 14.31  commissioner of transportation under Minnesota Statutes 1982, 
 14.32  section 174.24, subdivision 3, on July 1, 1984, so that the 
 14.33  percentage of total operating cost, as defined by the 
 14.34  commissioner, paid by the recipient from all local sources of 
 14.35  revenue, including operating revenue, does not exceed the 
 14.36  percentage for the recipient's classification as determined by 
 15.1   the commissioner of transportation under the commissioner's 
 15.2   final contract with the recipient.  The commissioner shall pay 
 15.3   the remainder of the total operating cost less all assistance 
 15.4   received by the recipient for that purpose from any federal 
 15.5   source.  
 15.6      (b) If a recipient informs the commissioner in writing 
 15.7   before financial assistance is distributed for any year that 
 15.8   paying the recipient's designated percentage of total operating 
 15.9   cost from local sources will cause undue hardship, the 
 15.10  commissioner may adjust the percentage as the commissioner deems 
 15.11  equitable.  
 15.12     (c) If for any year the funds available are insufficient to 
 15.13  allow payment of the commissioner's share of total operating 
 15.14  cost for those recipients, the commissioner shall reduce the 
 15.15  share in each classification to the extent necessary.  
 15.16     Subd. 7.  [TRANSIT OPERATIONS IMPACT ASSESSMENT.] Before 
 15.17  entering into a contract for operating assistance with a 
 15.18  recipient, the commissioner shall evaluate the effect, if any, 
 15.19  of the contract on the ridership, routes, schedules, fares, and 
 15.20  staffing levels of the existing and proposed service provided by 
 15.21  the commissioner.  The commissioner may enter into the contract 
 15.22  only upon determining that the service to be assisted under the 
 15.23  contract will not impose an undue hardship on the ridership or 
 15.24  financial condition of the department's transit operations.  The 
 15.25  requirements of this subdivision do not apply to contracts for 
 15.26  assistance to recipients who, as part of a negotiated 
 15.27  cost-sharing arrangement with the commissioner, pay a 
 15.28  substantial part of the cost of services that directly benefit 
 15.29  the recipient as an institution or organization. 
 15.30     Subd. 8.  [PARATRANSIT CONTRACTS.] In executing and 
 15.31  administering contracts for paratransit projects, the 
 15.32  commissioner has the powers and duties granted in section 
 15.33  174.255, subdivisions 1 and 2, relating to accessibility for 
 15.34  persons with disabilities and insurance coverage.  Section 
 15.35  174.255, subdivision 3, applies to paratransit projects that 
 15.36  receive assistance by contract with the commissioner. 
 16.1      Sec. 17.  [174.703] [TRANSIT SERVICE AREAS.] 
 16.2      Subdivision 1.  [DEFINITIONS.] (a) "Fully developed service 
 16.3   area" means the fully developed area, as defined in the 
 16.4   metropolitan council's development guide, plus the cities of 
 16.5   Mendota Heights, Maplewood, North St. Paul, and Little Canada. 
 16.6      (b) "Regular route transit" has the meaning given it in 
 16.7   section 174.22, subdivision 8, except that, for purposes of this 
 16.8   section, the term does not include services on fixed routes and 
 16.9   schedules that are primarily intended to provide circulator 
 16.10  service within a community or adjacent communities rather than 
 16.11  feeder service to the system of metropolitan regular route 
 16.12  transit operated by the department of transportation. 
 16.13     Subd. 2.  [SERVICE AREAS.] The commissioner of 
 16.14  transportation may provide financial assistance, whether 
 16.15  directly or through another entity, to private, for-profit 
 16.16  operators of public transit only for the following services: 
 16.17     (1) services that are not regular route services; 
 16.18     (2) regular route services provided on June 2, 1989, by a 
 16.19  private, for-profit operator under contract with the former 
 16.20  regional transit board or under a certificate of convenience and 
 16.21  necessity issued by the transportation regulation board; 
 16.22     (3) regular route services outside of the fully developed 
 16.23  service area that are not operated on June 2, 1989, by the 
 16.24  former metropolitan transit commission; 
 16.25     (4) regular route services provided under section 174.706; 
 16.26     (5) regular route services to recipients who, as part of a 
 16.27  negotiated cost-sharing arrangement with the commissioner, pay 
 16.28  at least 50 percent of the cost of the service that directly 
 16.29  benefits the recipient as an institution or organization; or 
 16.30     (6) regular route services that will not be operated for a 
 16.31  reasonable subsidy by the department. 
 16.32     Sec. 18.  [174.704] [SPECIAL TRANSPORTATION SERVICE.] 
 16.33     Subdivision 1.  [SERVICE OBJECTIVES.] The commissioner of 
 16.34  transportation shall implement a special transportation service 
 16.35  in the metropolitan area.  The objectives of the service are to: 
 16.36     (1) provide greater access to transportation for the 
 17.1   elderly, persons with disabilities, and others with special 
 17.2   transportation needs in the metropolitan area; 
 17.3      (2) develop an integrated system of special transportation 
 17.4   service providing transportation tailored to meet special 
 17.5   individual needs in the most cost-efficient manner; and 
 17.6      (3) use existing public, private, and private nonprofit 
 17.7   providers of service wherever possible, to supplement rather 
 17.8   than replace existing service, and to increase the productivity 
 17.9   of all special transportation vehicles available in the 
 17.10  metropolitan area.  
 17.11     Subd. 2.  [TRANSPORTATION ACCESSIBILITY ADVISORY 
 17.12  COMMITTEE.] The commissioner shall establish a transportation 
 17.13  accessibility advisory committee.  The transportation 
 17.14  accessibility advisory committee must include the elderly and 
 17.15  persons with disabilities, other users of special transportation 
 17.16  service, representatives of persons contracting to provide 
 17.17  special transportation services, and representatives of 
 17.18  appropriate agencies for the elderly and persons with 
 17.19  disabilities to advise the commissioner on management policies 
 17.20  for the service.  At least one-half the transportation 
 17.21  accessibility advisory committee members must be persons with 
 17.22  disabilities or elderly persons or the representatives of them.  
 17.23  Two of the appointments to the transportation accessibility 
 17.24  advisory committee must be made by the council on disability in 
 17.25  consultation with the commissioner. 
 17.26     Subd. 3.  [SERVICE CONTRACTS; MANAGEMENT; TRANSPORTATION 
 17.27  ACCESSIBILITY ADVISORY COMMITTEE.] (a) The commissioner may 
 17.28  contract for services necessary for providing special 
 17.29  transportation.  Transportation service provided under a 
 17.30  contract must specify the service to be provided, the standards 
 17.31  that must be met, and the rates for operating and providing 
 17.32  special transportation services.  
 17.33     (b) The commissioner shall establish management policies 
 17.34  for the service and may contract with a service administrator 
 17.35  for day-to-day administration and management of the service.  
 17.36  Any contract must delegate to the service administrator clear 
 18.1   authority to administer and manage the delivery of the service 
 18.2   pursuant to the commissioner's management policies and must 
 18.3   establish performance and compliance standards for the service 
 18.4   administrator.  The commissioner may provide day-to-day 
 18.5   administration and management of the service directly and may 
 18.6   own or lease vehicles used to provide the service.  
 18.7      (c) The commissioner shall ensure that the service 
 18.8   administrator establishes a system for registering and 
 18.9   expeditiously responding to complaints by users, informing users 
 18.10  of how to register complaints, and requiring providers to report 
 18.11  on incidents that impair the safety and well-being of users or 
 18.12  the quality of the service.  The commissioner shall report 
 18.13  annually to the legislature on complaints and provider reports, 
 18.14  the response of the service administrator, and steps taken by 
 18.15  the commissioner and the service administrator to identify 
 18.16  causes and provide remedies to recurring problems. 
 18.17     (d) Each year before renewing contracts with providers and 
 18.18  the service administrator, the commissioner shall provide an 
 18.19  opportunity for the transportation accessibility advisory 
 18.20  committee, users, and other interested persons to testify before 
 18.21  the commissioner concerning providers, contract terms, and other 
 18.22  matters relating to the commissioner's policies and procedures 
 18.23  for implementing the service. 
 18.24     Subd. 4.  [ELIGIBILITY CERTIFICATION.] The commissioner 
 18.25  shall include the notice of penalty for fraudulent 
 18.26  certification, and require the person certifying the applicant 
 18.27  to sign the eligibility certification form and the applicant to 
 18.28  sign the application form, as provided in section 174.295. 
 18.29     Subd. 5.  [DUTIES OF COMMISSIONER.] In implementing the 
 18.30  special transportation service, the commissioner shall:  
 18.31     (1) encourage participation in the service by public, 
 18.32  private, and private nonprofit providers of special 
 18.33  transportation currently receiving capital or operating 
 18.34  assistance from a public agency; 
 18.35     (2) contract with public, private, and private nonprofit 
 18.36  providers that have demonstrated their ability to effectively 
 19.1   provide service at a reasonable cost; 
 19.2      (3) encourage individuals using special transportation to 
 19.3   use the type of service most appropriate to their particular 
 19.4   needs; 
 19.5      (4) ensure that all persons providing special 
 19.6   transportation service receive equitable treatment in the 
 19.7   allocation of the ridership; 
 19.8      (5) encourage shared rides to the greatest extent 
 19.9   practicable; 
 19.10     (6) encourage public agencies that provide transportation 
 19.11  to eligible individuals as a component of human services and 
 19.12  educational programs to coordinate with this service and to 
 19.13  allow reimbursement for transportation provided through the 
 19.14  service at rates that reflect the public cost of providing that 
 19.15  transportation; 
 19.16     (7) establish criteria to be used in determining individual 
 19.17  eligibility for special transportation services; 
 19.18     (8) consult with the transportation accessibility advisory 
 19.19  committee in a timely manner before changes are made in 
 19.20  providing special transportation services, including, but not 
 19.21  limited to, changes in policies affecting the matters subject to 
 19.22  hearing under subdivision 2; 
 19.23     (9) provide for effective administration and enforcement of 
 19.24  the commissioner's policies and standards; and 
 19.25     (10) annually evaluate providers of special transportation 
 19.26  service to ensure compliance with the standards established for 
 19.27  the program. 
 19.28     Subd. 6.  [COORDINATION REQUIRED.] (a) The commissioner may 
 19.29  not grant any financial assistance to any recipient that 
 19.30  proposes to use any part of the grant to provide special 
 19.31  transportation service in the metropolitan area unless the 
 19.32  program is coordinated with the department's special 
 19.33  transportation service in the manner determined by the 
 19.34  commissioner.  
 19.35     (b) The commissioner is not required to provide funding for 
 19.36  transportation services from a residence to a service site and 
 20.1   home again when the services are used by individuals in 
 20.2   conjunction with their participation in human service 
 20.3   developmental achievement center programs in which 
 20.4   transportation to and from the program is a required and funded 
 20.5   component of those programs. 
 20.6      Subd. 7.  [EQUITABLE ALLOCATION AND ANNUAL REALLOCATION.] 
 20.7   The commissioner shall distribute all available funding under 
 20.8   this section in a manner designed to achieve an equitable 
 20.9   allocation of special transportation services based on the 
 20.10  proportion of the number of elderly persons, persons with 
 20.11  disabilities, or economically disadvantaged individuals with 
 20.12  special transportation needs who actually use the special 
 20.13  transportation service.  
 20.14     Subd. 8.  [OPERATOR SERVICE STANDARDS.] A person operating 
 20.15  or assisting the operation of a vehicle may leave the vehicle to 
 20.16  enter premises in order to help a passenger who does not require 
 20.17  emergency ambulance service.  Operators and assistants shall 
 20.18  provide the help necessary for door-through-door service, 
 20.19  including help in entering and leaving the vehicle and help 
 20.20  through the exterior entrance and over any exterior steps at 
 20.21  either departure or destination buildings, provided that both 
 20.22  the steps and the wheelchair are in good repair.  If an operator 
 20.23  or assistant refuses help because of the condition of the steps 
 20.24  or the wheelchair, the operator of the service shall send 
 20.25  letters to the service administrator designated by the 
 20.26  commissioner, who shall notify the person denied service 
 20.27  describing the corrective measures necessary to qualify for 
 20.28  service.  
 20.29     Sec. 19.  [174.705] [SPECIAL TRANSPORTATION MARKETS.] 
 20.30     Subdivision 1.  [PURPOSES.] The legislature finds and 
 20.31  declares that the limited public resources available to 
 20.32  subsidize transit require increased efforts to concentrate 
 20.33  service and funding on special sectors of the marketplace, so as 
 20.34  to ensure a basic level of mobility for all persons in the 
 20.35  metropolitan area.  The purposes of the programs established by 
 20.36  this section are to better target transit services and 
 21.1   expenditures on transit-dependent sectors of the market, to 
 21.2   increase efficiency and effectiveness of transit services, and 
 21.3   to control the cost of transit services for persons who lack 
 21.4   private means of transportation. 
 21.5      Subd. 2.  [ADMINISTRATION.] (a) The commissioner shall 
 21.6   design and administer the programs under this section.  The 
 21.7   commissioner may request proposals for projects to demonstrate 
 21.8   methods of achieving the purposes of programs administered under 
 21.9   this section.  
 21.10     (b) The commissioner shall design or ensure the design of 
 21.11  programs that will provide better access for the targeted 
 21.12  service groups to places of employment and activity throughout 
 21.13  the metropolitan area, using regular route transit, paratransit, 
 21.14  taxis, car or van pools, or other means of conveyance.  
 21.15     (c) The commissioner may organize the services by: 
 21.16     (1) providing to individuals, directly or indirectly, 
 21.17  reduced fares or passes on public transit or vouchers to be used 
 21.18  to purchase transportation; 
 21.19     (2) contracting with public and private providers; 
 21.20     (3) making arrangements with: 
 21.21     (i) government agencies, civic and community organizations, 
 21.22  or nonprofit groups providing assistance to the targeted service 
 21.23  groups; 
 21.24     (ii) prospective employers; 
 21.25     (iii) employment, education, retail, medical, or other 
 21.26  activity centers; or 
 21.27     (iv) local governments; or 
 21.28     (4) any other methods designed to improve service and 
 21.29  reduce costs to the targeted service groups. 
 21.30     Subd. 3.  [JOBSEEKERS.] The commissioner shall establish a 
 21.31  program and policies to increase the availability and utility of 
 21.32  public transit services and reduce transportation costs for 
 21.33  persons who are seeking employment and who lack private means of 
 21.34  transportation. 
 21.35     Subd. 4.  [TRANSIT DISADVANTAGED.] The commissioner shall 
 21.36  establish a program and policies to reduce transportation costs 
 22.1   for persons who are especially dependent on public transit for 
 22.2   common mobility because of limited incomes, age, disability, or 
 22.3   other reasons. 
 22.4      Sec. 20.  [174.706] [REPLACEMENT SERVICE PROGRAM.] 
 22.5      The replacement service program previously operated under 
 22.6   former section 473.388 is continued as a program of the 
 22.7   commissioner, who may provide assistance to those programs 
 22.8   existing on the effective date of this section. 
 22.9      Sec. 21.  [174.707] [ROUTE PLANNING AND SCHEDULING.] 
 22.10     The commissioner may contract with other operators or local 
 22.11  governments for route planning and scheduling services in any 
 22.12  configuration of new or reconfiguration of existing transit 
 22.13  services and routes, including route planning and scheduling 
 22.14  necessary for the test marketing program, the service bidding 
 22.15  program, and the interstate highway described in section 
 22.16  161.123, clause (2), commonly known as I-394.  
 22.17     Sec. 22.  [174.708] [SERVICE BIDDING.] 
 22.18     The commissioner may competitively bid transit service only 
 22.19  in accordance with rules adopted by the commissioner.  The 
 22.20  commissioner shall establish a project management team to assist 
 22.21  and advise the council in developing and implementing the rules. 
 22.22  The project management team must include representatives of the 
 22.23  Amalgamated Transit Union Local 1005, private operators, local 
 22.24  governments, and other persons interested in the subject. 
 22.25     Sec. 23.  [174.709] [POWERS.] 
 22.26     Subdivision 1.  [GENERAL.] The commissioner of 
 22.27  transportation has the powers and duties prescribed by sections 
 22.28  174.709 to 174.717 and all powers necessary or convenient to 
 22.29  discharge the duties of the office.  
 22.30     Subd. 2.  [CONDEMNATION.] For transit purposes, the 
 22.31  commissioner may acquire property, franchises, easements, or 
 22.32  property rights or interests of any kind by condemnation 
 22.33  proceedings pursuant to chapter 117.  Except as provided in 
 22.34  subdivision 5, the commissioner may take possession of any 
 22.35  property for which condemnation proceedings have been commenced 
 22.36  at any time after the filing of the petition describing the 
 23.1   property in the proceedings.  The commissioner may contract with 
 23.2   an operator or other person for the use by the operator or 
 23.3   person of any property under the commissioner's control.  
 23.4      Subd. 3.  [TRANSIT SYSTEMS.] The commissioner may engineer, 
 23.5   construct, equip, and operate transit and paratransit systems, 
 23.6   projects, or any parts of those systems, including road lanes or 
 23.7   rights-of-way, terminal facilities, maintenance and garage 
 23.8   facilities, ramps, parking areas, and other facilities useful 
 23.9   for or related to any public transit or paratransit system or 
 23.10  project.  
 23.11     Subd. 4.  [ACQUISITION OF TRANSIT SYSTEMS.] (a) The 
 23.12  commissioner may: 
 23.13     (1) acquire by purchase, lease, gift, or condemnation 
 23.14  proceedings any existing public transit system or any part of 
 23.15  the system, including all or any part of the plant, equipment, 
 23.16  shares of stock, real or personal or mixed property, rights in 
 23.17  property, reserve funds, special funds, franchises, licenses, 
 23.18  patents, permits and papers, documents and records belonging to 
 23.19  any operator of a public transit system within the metropolitan 
 23.20  area; 
 23.21     (2) assume any or all liabilities of any operator of a 
 23.22  public transit system; 
 23.23     (3) take control of and operate a system immediately 
 23.24  following the filing and approval of the initial petition for 
 23.25  condemnation if the commissioner, in the commissioner's 
 23.26  discretion, determines this action to be necessary; and 
 23.27     (4) take possession of all right, title, and other powers 
 23.28  of ownership in all properties and facilities described in the 
 23.29  petition. 
 23.30     (b) Control must be taken by resolution, which is effective 
 23.31  upon service of a copy on the condemnee and the filing of the 
 23.32  resolution in the condemnation action.  
 23.33     (c) In determining the fair value of the existing public 
 23.34  transit system, there must not be included any value 
 23.35  attributable to expenditures for improvements made by the former 
 23.36  metropolitan transit commission, the former regional transit 
 24.1   board, the metropolitan council, or the commissioner. 
 24.2      (d) The commissioner may continue or terminate within three 
 24.3   months of acquisition any advertising contract in existence by 
 24.4   and between any advertiser and a transit system that the 
 24.5   commissioner has acquired.  On determining to terminate the 
 24.6   advertising contract, the commissioner shall acquire all of the 
 24.7   advertiser's rights under the contract by purchase or eminent 
 24.8   domain proceedings as provided by law. 
 24.9      Subd. 5.  [CONDEMNATION OF PROPERTY IN PUBLIC USE.] The 
 24.10  fact that property is owned by or is in the charge of a public 
 24.11  agency or a public service corporation organized for a purpose 
 24.12  specified in section 300.03, or is already devoted to a public 
 24.13  use or to use by the corporation or was acquired for that 
 24.14  purpose by condemnation may not prevent its acquisition by the 
 24.15  commissioner by condemnation.  However, if the property is in 
 24.16  actual public use or in actual use by the corporation for any 
 24.17  purpose of interest or benefit to the public, the taking by the 
 24.18  commissioner by condemnation may not be authorized unless the 
 24.19  court finds and determines that there is greater public 
 24.20  necessity for the proposed use by the commissioner than for the 
 24.21  existing use. 
 24.22     Subd. 6.  [VOLUNTARY TRANSFER OF PUBLIC PROPERTY TO 
 24.23  COMMISSIONER.] Any state department or other agency of the state 
 24.24  government or any county, municipality, or other public agency 
 24.25  may sell, lease, grant, transfer, or convey to the commissioner, 
 24.26  with or without consideration, any facility or any part of a 
 24.27  facility or any real or personal property or interest in 
 24.28  property that may be useful to the commissioner for any 
 24.29  authorized purpose.  When the construction of a facility has not 
 24.30  been completed, the public agency concerned may also transfer, 
 24.31  sell, assign, and set over to the commissioner, with or without 
 24.32  consideration, any existing contract for the construction of the 
 24.33  facility.  
 24.34     Subd. 7.  [MANAGEMENT CONTRACTS.] Notwithstanding sections 
 24.35  174.709 to 174.717, the commissioner may, in lieu of directly 
 24.36  operating any public transit system or any part of the system, 
 25.1   enter into contracts for management services.  The contracts may 
 25.2   provide for compensation, incentive fees, the employment of 
 25.3   personnel, the services provided, and other terms and conditions 
 25.4   that the commissioner deems proper.  The contracts must provide 
 25.5   that the compensation of personnel who work full time or 
 25.6   substantially full time providing management or other services 
 25.7   for the commissioner is public data under chapter 13.  
 25.8      The commissioner may not permit a contract manager to 
 25.9   supervise or manage internal audit activities.  Internal audit 
 25.10  activity must be supervised and managed directly by the 
 25.11  department of transportation.  The commissioner shall advertise 
 25.12  for bids and select contracts for management services through 
 25.13  competitive bidding.  The term of the contract may not be longer 
 25.14  than two years.  The contract must include clear operating 
 25.15  objectives, stating the service policies and goals of the 
 25.16  commissioner in terms of the movement of various passenger 
 25.17  groups, and performance criteria, by means of which success in 
 25.18  achieving the operating objectives can be measured.  The 
 25.19  commissioner shall consider and determine the feasibility and 
 25.20  desirability of having all transit management services provided 
 25.21  internally by employees of the department. 
 25.22     For the purpose of resolving any dispute arising under any 
 25.23  existing or new collective bargaining agreement relating to the 
 25.24  terms or conditions of their employment, the employees of any 
 25.25  public transit system operated pursuant to this subdivision may 
 25.26  either engage in a concerted refusal to work or to invoke the 
 25.27  processes of final and binding arbitration as provided by 
 25.28  chapter 572, subject to any applicable provisions of the 
 25.29  agreement not inconsistent with law. 
 25.30     Subd. 8.  [RELOCATION OF DISPLACED PERSONS.] The 
 25.31  commissioner may plan for and assist in the relocation of 
 25.32  individuals, families, business concerns, nonprofit 
 25.33  organizations, and others displaced by operations of the 
 25.34  commissioner, and may make relocation payments in accordance 
 25.35  with federal regulations.  
 25.36     Sec. 24.  [174.710] [METROPOLITAN TRANSIT POLICE.] 
 26.1      Subdivision 1.  [AUTHORIZATION.] The commissioner may 
 26.2   appoint peace officers, as defined in section 626.84, 
 26.3   subdivision 1, paragraph (c), and establish a law enforcement 
 26.4   agency, as defined in section 626.84, subdivision 1, paragraph 
 26.5   (h), known as the metropolitan transit police, to police its 
 26.6   transit property and routes and to make arrests under sections 
 26.7   629.30 and 629.34.  The jurisdiction of the law enforcement 
 26.8   agency is limited to offenses relating to the department's 
 26.9   transit property, equipment, employees, and passengers. 
 26.10     Subd. 2.  [LIMITATIONS.] The initial processing of a person 
 26.11  arrested by the transit police for an offense within the 
 26.12  agency's jurisdiction is the responsibility of the transit 
 26.13  police unless otherwise directed by the law enforcement agency 
 26.14  with primary jurisdiction.  A subsequent investigation is the 
 26.15  responsibility of the law enforcement agency of the jurisdiction 
 26.16  in which the crime was committed.  The transit police are not 
 26.17  authorized to apply for a search warrant as prescribed in 
 26.18  section 626.05. 
 26.19     Subd. 3.  [POLICIES.] Before the commissioner begins to 
 26.20  operate the law enforcement agency within a city or county with 
 26.21  an existing law enforcement agency, the transit police shall 
 26.22  develop, in conjunction with the law enforcement agencies, 
 26.23  written policies that describe how the issues of joint 
 26.24  jurisdiction will be resolved.  The policies must also address 
 26.25  the operation of emergency vehicles by transit police responding 
 26.26  to transit emergencies.  These policies must be filed with the 
 26.27  board of peace officer standards and training by August 1, 
 26.28  1995.  Revisions of any of these policies must be filed with the 
 26.29  board within ten days of the effective date of the revision.  
 26.30  The commissioner shall train all officers of the transit police 
 26.31  regarding the application of these policies. 
 26.32     Subd. 4.  [CHIEF LAW ENFORCEMENT OFFICER.] The commissioner 
 26.33  shall appoint a peace officer employed full time to be the chief 
 26.34  law enforcement officer and to be responsible for the management 
 26.35  of the law enforcement agency.  The person shall possess the 
 26.36  necessary police and management experience and have the title of 
 27.1   chief of metropolitan transit police services.  All other police 
 27.2   management and supervisory personnel must be employed full time 
 27.3   by the commissioner.  Supervisory personnel must be on duty and 
 27.4   available any time transit police are on duty.  The commissioner 
 27.5   may not hire part-time peace officers as defined in section 
 27.6   626.84, subdivision 1, paragraph (f), except that the 
 27.7   commissioner may appoint peace officers to work on a part-time 
 27.8   basis not to exceed 30 full-time equivalents. 
 27.9      Subd. 5.  [EMERGENCIES.] (a) The commissioner shall ensure 
 27.10  that all emergency vehicles used by transit police are equipped 
 27.11  with radios capable of receiving and transmitting on the same 
 27.12  frequencies used by the law enforcement agencies that have 
 27.13  primary jurisdiction. 
 27.14     (b) When the transit police receive an emergency call, they 
 27.15  shall notify the public safety agency with primary jurisdiction 
 27.16  and coordinate the appropriate response. 
 27.17     (c) Transit police officers shall notify the primary 
 27.18  jurisdictions of their response to any emergency. 
 27.19     Subd. 6.  [COMPLIANCE.] Except as otherwise provided in 
 27.20  this section, the transit police shall comply with all statutes 
 27.21  and administrative rules relating to the operation and 
 27.22  management of a law enforcement agency. 
 27.23     Sec. 25.  [174.711] [FARE POLICY.] 
 27.24     Subdivision 1.  [DEFINITION.] "Off-peak hours" means the 
 27.25  time from 9:00 a.m. to 3:30 p.m. and 6:30 p.m. until the last 
 27.26  bus on Monday through Friday of each week and all day Saturday, 
 27.27  Sunday, and holidays designated by the commissioner. 
 27.28     Subd. 2.  [FARE POLICY.] (a) Fares and fare-collection 
 27.29  systems must be established and administered to: 
 27.30     (1) encourage and increase transit and paratransit 
 27.31  ridership with an emphasis on regular ridership; 
 27.32     (2) restrain increases in the average operating subsidy per 
 27.33  passenger; 
 27.34     (3) ensure that no riders on any route pay more in fares 
 27.35  than the average cost of providing the service on that route; 
 27.36  and 
 28.1      (4) ensure that operating revenues are proportioned to the 
 28.2   cost of providing the service so as to reduce any disparity in 
 28.3   the subsidy per passenger on routes in the transit system. 
 28.4      (b) The plan must contain a statement of the policies that 
 28.5   will govern the imposition of user charges for various types of 
 28.6   transit service and the policies that will govern decisions by 
 28.7   the commissioner to change fare policy. 
 28.8      Subd. 3.  [REGULAR ROUTE FARES.] The commissioner shall 
 28.9   establish and enforce uniform fare policies for regular route 
 28.10  transit in the metropolitan area.  The policies must be 
 28.11  consistent with the requirements of this section.  The 
 28.12  commissioner and other operators shall charge a base fare and 
 28.13  any surcharges for peak hours and distance of service in 
 28.14  accordance with the commissioner's fare policies.  The 
 28.15  commissioner shall approve all fare schedules. 
 28.16     Subd. 4.  [CIRCULATION FARES.] The commissioner and other 
 28.17  operators may charge a reduced fare for service on any route 
 28.18  providing circulation service in a downtown area or community 
 28.19  activity center.  The commissioner and other operators shall not 
 28.20  contribute more than 50 percent of the operating deficit of any 
 28.21  such route that is confined to a downtown area or community 
 28.22  activity center.  The boundaries of service districts eligible 
 28.23  for reduced fares under this subdivision must be approved by the 
 28.24  commissioner. 
 28.25     Subd. 5.  [MONTHLY PASSES.] The commissioner may offer 
 28.26  monthly passes for regular route bus service for sale to the 
 28.27  general public.  
 28.28     Subd. 6.  [EMPLOYEE PLAN.] The commissioner may offer 
 28.29  monthly passes for regular route bus service for sale to 
 28.30  employers at a special discount subject to this subdivision.  An 
 28.31  employer may be eligible to purchase passes at a special 
 28.32  discount if the employer agrees to establish a payroll deduction 
 28.33  plan as a means for its employees to purchase the passes at a 
 28.34  price at or below the amount charged by the commissioner.  The 
 28.35  special discount on passes sold pursuant to this subdivision 
 28.36  must be determined by the commissioner. 
 29.1      Sec. 26.  [174.712] [AGREEMENTS WITH COMMISSIONER; 
 29.2   ENCOURAGEMENT OF TRANSIT USE.] 
 29.3      A state department or agency, including the legislative 
 29.4   branch, any local governmental unit, or a metropolitan agency, 
 29.5   may enter into an agreement with the commissioner and other 
 29.6   operators for the purpose of encouraging the use of transit by 
 29.7   its employees residing in the metropolitan area.  The agreement 
 29.8   may provide for, among other things:  (1) the advance purchase 
 29.9   of tokens, tickets, or other devices from the commissioner or 
 29.10  other operator for use in lieu of fares on vehicles operated by 
 29.11  the department or other operator; and (2) special transit 
 29.12  service for employees to and from their place of employment, at 
 29.13  fares to be agreed upon by the contracting parties.  The tokens, 
 29.14  tickets, or other devices or services may be made available to 
 29.15  employees at reduced rates.  The agreement and arrangement by a 
 29.16  state department or agency must be submitted to the commissioner 
 29.17  of administration for approval before execution.  Any operating 
 29.18  deficits or subsidies resulting from the agreements must be 
 29.19  assumed by the contracting governmental unit, department, or 
 29.20  other agency, unless otherwise provided in an agreement approved 
 29.21  by the commissioner. 
 29.22     Sec. 27.  [174.713] [USE OF PUBLIC ROADWAYS; MINNEAPOLIS 
 29.23  LIMITATION.] 
 29.24     Subdivision 1.  [AUTHORITY.] For the purposes of sections 
 29.25  174.709 to 174.717 and upon the conditions stated in this 
 29.26  subdivision, the commissioner of transportation may use any 
 29.27  state highway or other public roadway, parkway, or lane, or any 
 29.28  bridge or tunnel or other appurtenance of a roadway, without 
 29.29  payment of any compensation, provided the use does not interfere 
 29.30  unreasonably with the public use or maintenance of the roadway 
 29.31  or appurtenance or entail any substantial additional costs for 
 29.32  maintenance. 
 29.33     Subd. 2.  [EXCEPTION.] This subdivision does not apply to 
 29.34  the property of any common carrier by rail. 
 29.35     Subd. 3.  [MINNEAPOLIS PARKWAY LIMITATIONS.] (a) The 
 29.36  consent of the road authority in charge of the state highway or 
 30.1   other public highway or roadway or appurtenance is not required; 
 30.2   except that, if the commissioner seeks to use a designated 
 30.3   parkway for regular route service in the city of Minneapolis, 
 30.4   the commissioner shall obtain permission from and is subject to 
 30.5   reasonable limitations imposed by a joint board consisting of 
 30.6   two representatives of the commissioner, two members of the 
 30.7   board of park commissioners, and a fifth member jointly selected 
 30.8   by the representatives of the commissioner and the park board.  
 30.9   The board of park commissioners and the commissioner may 
 30.10  designate persons to sit on the joint board.  
 30.11     (b) In considering a request by the commissioner to use 
 30.12  designated parkways for additional routes or trips, the joint 
 30.13  board shall base its decision to grant or deny the request based 
 30.14  on the criteria to be established by the joint board.  The 
 30.15  decision to grant or deny the request must be made within 45 
 30.16  days of the date of the request. 
 30.17     (c) The park board must be notified immediately by the 
 30.18  commissioner of any temporary route detours.  If the park board 
 30.19  objects to the temporary route detours within five days of being 
 30.20  notified, the joint board shall convene and decide whether to 
 30.21  grant the request, otherwise the request is deemed granted.  
 30.22     Subd. 4.  [COURT ACTION.] If the agency objects to the 
 30.23  proposed use or claims reimbursement from the commissioner for 
 30.24  additional cost of maintenance, the agency may commence an 
 30.25  action against the commissioner in the Hennepin county district 
 30.26  court.  The proceedings in the action must conform to the rules 
 30.27  of civil procedure applicable to the district courts.  The court 
 30.28  shall sit without jury.  If the court determines that the use in 
 30.29  question interferes unreasonably with the public use or 
 30.30  maintenance of the roadway or appurtenance, it shall enjoin the 
 30.31  use by the commissioner.  If the court determines that the use 
 30.32  in question does not interfere unreasonably with the public use 
 30.33  or maintenance of the roadway or appurtenance, but that it 
 30.34  entails substantial additional maintenance costs, the court 
 30.35  shall award judgment to the agency for the amount of the 
 30.36  additional costs.  Otherwise the court shall award judgment to 
 31.1   the commissioner.  An aggrieved party may appeal from the 
 31.2   judgment of the district court in the same manner as appeals in 
 31.3   other civil actions.  
 31.4      Subd. 5.  [TRAFFIC CONTOL DEVICES, SIGNS, AND 
 31.5   SHELTERS.] The commissioner may also use land within the 
 31.6   right-of-way of any state highway or other public roadway for 
 31.7   the erection of traffic control devices, other signs, and 
 31.8   passenger shelters on the conditions stated in this section, 
 31.9   subject only to the express provisions of other applicable 
 31.10  statutes and to federal requirements when necessary to qualify 
 31.11  for federal aid. 
 31.12     Sec. 28.  [174.714] [LABOR PROVISIONS.] 
 31.13     Subdivision 1.  [EMPLOYEE RIGHTS AND BENEFITS RETAINED.] If 
 31.14  the commissioner acquires an existing transit system, the 
 31.15  commissioner shall assume and observe all existing labor 
 31.16  contracts and pension obligations.  All employees of the 
 31.17  acquired system, except executive and administrative officers 
 31.18  who are necessary for the operation of the system by the 
 31.19  commissioner, must be transferred to and appointed as employees 
 31.20  of the department for the purposes of the transit system, 
 31.21  subject to all the rights and benefits of sections 174.709 to 
 31.22  174.717.  These transferred employees must be given seniority 
 31.23  credit and sick leave, vacation, insurance, and pension credits 
 31.24  in accordance with the records or labor agreements from the 
 31.25  acquired transit system.  The commissioner shall assume the 
 31.26  obligations of any transit system acquired by the commissioner 
 31.27  with regard to wages, salaries, hours, working conditions, sick 
 31.28  leave, health and welfare, and pension or retirement provisions 
 31.29  for employees.  The commissioner and the employees, through 
 31.30  their representatives for collective bargaining purposes, shall 
 31.31  take whatever action may be necessary to have pension trust 
 31.32  funds presently under the joint control of the acquired system 
 31.33  and the participating employees through their representatives 
 31.34  transferred to the trust fund to be established, maintained, and 
 31.35  administered jointly by the commissioner and the participating 
 31.36  employees through their representatives.  No employee of any 
 32.1   acquired system who is transferred to a position with the 
 32.2   department, by reason of the transfer, may be placed in any 
 32.3   worse position with respect to workers' compensation, pension, 
 32.4   seniority, wages, sick leave, vacation, health and welfare 
 32.5   insurance, or any other benefits than the employee enjoyed as an 
 32.6   employee of the system before its acquisition. 
 32.7      Subd. 2.  [TRANSIT EMPLOYEES BEFORE JULY 1, 1978.] For any 
 32.8   employees of the former metropolitan transit commission who were 
 32.9   transferred to and appointed as employees of the commission upon 
 32.10  completion of acquisitions of transit systems which occurred 
 32.11  prior to July 1, 1978, provisions of Laws 1978, chapter 538, 
 32.12  replace the provisions of subdivision 1 relating to the pension 
 32.13  obligations which the commission was required to assume, and 
 32.14  which the commissioner is required to assume after the effective 
 32.15  date of this section, and the pension or retirement plan and 
 32.16  pension trust funds which the commission was required to 
 32.17  establish, maintain, and administer and which the commissioner 
 32.18  is required to assume after the effective date of this section.  
 32.19     Upon compliance with the applicable provisions of Laws 
 32.20  1978, chapter 538, the commissioner shall not be deemed to have 
 32.21  placed any employee transferred to the department pursuant to 
 32.22  this section, who was transferred to and appointed as an 
 32.23  employee of the former commission upon completion of 
 32.24  acquisitions of transit systems which occurred prior to July 1, 
 32.25  1978, in any worse position with respect to pension and related 
 32.26  benefits than the employee of the commission enjoyed as an 
 32.27  employee of the earlier acquired existing transit system. 
 32.28     Subd. 3.  [TRANSIT COMMISSION EMPLOYEES; ACQUISITIONS AFTER 
 32.29  JUNE 30, 1978.] For any employees of the former metropolitan 
 32.30  transit commission who were transferred to and appointed as 
 32.31  employees of the commission upon completion of acquisitions of 
 32.32  transit systems which occurred after June 30, 1978, those 
 32.33  employees are governed by the provisions of Laws 1978, chapter 
 32.34  538, unless the acquisition of the transit system which employed 
 32.35  them immediately preceding the acquisition included the 
 32.36  acquisition of a pension trust fund under the joint control of 
 33.1   the acquired system and the participating employees through 
 33.2   their representatives. 
 33.3      Sec. 29.  [174.715] [TAKING OVER PERSONNEL AND CONTRACTS OF 
 33.4   TRANSIT SYSTEMS.] 
 33.5      Whenever the commissioner directly operates any public 
 33.6   transit system, or any part of the system, or enters into any 
 33.7   management contract or other arrangement for the operation of a 
 33.8   system, the commissioner shall take the action necessary to 
 33.9   extend to employees of the affected public transit systems, in 
 33.10  accordance with seniority, the first opportunity for reasonably 
 33.11  comparable employment in any available nonsupervisory jobs in 
 33.12  respect to operations for which they can qualify after a 
 33.13  reasonable training period.  The employment must not result in 
 33.14  any worsening of the employee's position in the employee's 
 33.15  former employment nor any loss of wages, hours, working 
 33.16  conditions, seniority, fringe benefits, and rights and 
 33.17  privileges pertaining to the former employment.  The 
 33.18  commissioner may enter into an agreement specifying fair and 
 33.19  equitable arrangements to protect the interests of employees who 
 33.20  may be affected if the commissioner should acquire any interest 
 33.21  in or purchase any facilities or other property of a privately 
 33.22  owned and operated transit system, or construct, improve, or 
 33.23  reconstruct any facilities or other property acquired from any 
 33.24  system, or provide by contract or otherwise for the operation of 
 33.25  transportation facilities or equipment in competition with, or 
 33.26  supplementary to, the service provided by an existing transit 
 33.27  system.  The agreement, specifying the terms and conditions of 
 33.28  the protective arrangements, must comply with any applicable 
 33.29  requirements of this chapter, and with the requirements of any 
 33.30  federal law or regulation if federal aid is involved.  The 
 33.31  agreement may provide for final and binding arbitration of any 
 33.32  dispute.  
 33.33     Sec. 30.  [174.716] [DISABILITY AND SURVIVORSHIP COVERAGE.] 
 33.34     (a) After June 30, 1978, and until July 1, 1994, the former 
 33.35  metropolitan transit commission shall provide for all active 
 33.36  employees of the transit operating division of the commission 
 34.1   the disability and survivorship coverage described in this 
 34.2   section.  
 34.3      (b) From July 1, 1994, to July 31, 1995, the metropolitan 
 34.4   council shall provide for all active employees of the council's 
 34.5   transit operations the disability and survivorship coverage 
 34.6   described in this section.  
 34.7      (c) After July 31, 1995, the department of transportation 
 34.8   shall provide for all active employees of the office of transit 
 34.9   operations the disability and survivorship coverage that, when 
 34.10  added to the disability benefit or the survivorship benefit 
 34.11  payable from the Minnesota state retirement system pursuant to 
 34.12  section 352.113 or 352.12, subdivision 2, will at least equal 
 34.13  the disability benefit or the survivorship benefit that the 
 34.14  employee at the time of disability, or the employee's surviving 
 34.15  spouse at the time of the death of the employee while on active 
 34.16  duty, would have been entitled to receive under the disability 
 34.17  benefit, or the benefit provisions for survivors of active 
 34.18  employees deceased while on active duty, of the metropolitan 
 34.19  transit commission-transit operating division employees 
 34.20  retirement fund plan document in effect on December 31, 1977.  
 34.21     (d) The department shall not be required to provide any 
 34.22  supplementary disability benefit coverage or benefit amount to 
 34.23  replace the amount of any reduction in any disability payable 
 34.24  from the Minnesota state retirement system due to the receipt of 
 34.25  benefits under the workers' compensation law unless no offset of 
 34.26  the amount of workers' compensation benefits from the amount of 
 34.27  a disability benefit was required pursuant to the provisions of 
 34.28  article 10 of the metropolitan transit commission-transit 
 34.29  operating division employees retirement fund plan document in 
 34.30  effect on December 31, 1977.  The commissioner may elect to 
 34.31  provide the additional disability and survivorship coverage 
 34.32  either through contract with an insurance carrier or through 
 34.33  self-insurance. 
 34.34     (e) If the commissioner elects to provide the coverage 
 34.35  through an insurance contract, the commissioner is authorized to 
 34.36  request bids from, or to negotiate with, insurance carriers and 
 35.1   to enter into contracts with carriers that in the judgment of 
 35.2   the commissioner are best qualified to underwrite and service 
 35.3   this insurance benefit coverage.  The commissioner shall 
 35.4   consider factors such as the cost of the contracts; the service 
 35.5   capabilities, character, financial position, and reputation with 
 35.6   respect to carriers under consideration; and any other factors 
 35.7   the commissioner deems appropriate. 
 35.8      (f) The disability and survivorship insurance contract with 
 35.9   the particular insurance carrier must be for a uniform term of 
 35.10  at least one year, but may be made automatically renewable from 
 35.11  term to term in absence of notice of termination by either 
 35.12  party.  The disability and survivorship insurance contract must 
 35.13  contain a detailed statement of benefits offered, maximums, 
 35.14  limitations, and exclusions.  
 35.15     (g) A summary description of the essential terms of the 
 35.16  contract must be provided by the commissioner to the labor 
 35.17  organization that is the exclusive bargaining agent representing 
 35.18  public transit operations employees of the department and to 
 35.19  each active transit employee. 
 35.20     (h) The commissioner shall determine whether the disability 
 35.21  or survivorship insurance coverage meets the minimum 
 35.22  requirements of this section following consultation with the 
 35.23  executive director of the Minnesota state retirement system.  If 
 35.24  the disability or survivorship coverage provided by the 
 35.25  department fails at any time after July 31, 1995, to meet the 
 35.26  requirements of this section as to the level of disability or 
 35.27  survivorship coverage to be provided, the deficiency in the 
 35.28  actual benefits provided continues to be an obligation of the 
 35.29  department.  
 35.30     (i) Notwithstanding any provisions of chapter 179 to the 
 35.31  contrary, the labor organization that is the exclusive 
 35.32  bargaining agent representing public transit operations 
 35.33  employees of the department may meet and bargain with the 
 35.34  commissioner on an increase in the level of disability coverage, 
 35.35  or coverage of survivors of active employees deceased while on 
 35.36  active duty, to be provided by the department at the same time 
 36.1   that wages and other terms and conditions of employment are 
 36.2   considered. 
 36.3      (j) This section does not apply to employees hired after 
 36.4   December 31, 1977. 
 36.5      Sec. 31.  [174.717] [EMPLOYER CONTRIBUTIONS FOR CERTAIN 
 36.6   EMPLOYEES.] 
 36.7      Notwithstanding any contrary provisions of section 352.029, 
 36.8   the department shall make the employer contributions required 
 36.9   pursuant to section 352.04, subdivision 3, for any employee who 
 36.10  was on authorized leave of absence from the office of transit 
 36.11  operations of the transportation division of the metropolitan 
 36.12  council who is employed by the labor organization that is the 
 36.13  exclusive bargaining agent representing those employees of the 
 36.14  office of transit operations and who is covered by the Minnesota 
 36.15  state retirement system in addition to all other employer 
 36.16  contributions the department is required to make. 
 36.17     Sec. 32.  Minnesota Statutes 1994, section 473.125, is 
 36.18  amended to read: 
 36.19     473.125 [REGIONAL ADMINISTRATOR.] 
 36.20     The metropolitan council shall appoint a regional 
 36.21  administrator to serve at the council's pleasure as the 
 36.22  principal administrative officer for the metropolitan council.  
 36.23  The regional administrator shall organize the work of the 
 36.24  council staff.  The regional administrator shall appoint on the 
 36.25  basis of merit and fitness, and discipline and discharge all 
 36.26  employees in accordance with the council's personnel policy, 
 36.27  except (1) the performance and budget analysts provided for in 
 36.28  section 473.123, subdivision 7, (2) the general counsel, as 
 36.29  provided in section 473.123, subdivision 8, (3) employees of the 
 36.30  ~~offices~~ office of wastewater services ~~and transit operations~~, 
 36.31  who are appointed, disciplined, and discharged in accordance 
 36.32  with council personnel policies by ~~their respective~~ the 
 36.33  operations ~~managers~~ manager, and (4) as provided in Laws 1994, 
 36.34  chapter 628, articles 2, sections 3 and 4.  The regional 
 36.35  administrator must ensure that all policy decisions of the 
 36.36  council are carried out.  The regional administrator shall 
 37.1   attend meetings of the council and may take part in discussions 
 37.2   but may not vote.  The regional administrator shall recommend to 
 37.3   the council for adoption measures deemed necessary for efficient 
 37.4   administration of the council, keep the council fully apprised 
 37.5   of the financial condition of the council, and prepare and 
 37.6   submit an annual budget to the council for approval.  The 
 37.7   regional administrator shall prepare and submit for approval by 
 37.8   the council an administrative code organizing and codifying the 
 37.9   policies of the council, and perform other duties as prescribed 
 37.10  by the council.  The regional administrator may be chosen from 
 37.11  among the citizens of the nation at large, and shall be selected 
 37.12  on the basis of training and experience in public administration.
 37.13     Sec. 33.  Minnesota Statutes 1994, section 473.146, 
 37.14  subdivision 3, is amended to read: 
 37.15     Subd. 3.  [TRANSPORTATION CHAPTER OF THE DEVELOPMENT 
 37.16  GUIDE.] The transportation chapter must include policies 
 37.17  relating to all transportation forms and be designed to promote 
 37.18  the legislative determinations, policies, and goals set forth in 
 37.19  ~~section 473.371~~ chapter 174.  In addition to the requirements of 
 37.20  subdivision 1 regarding the contents of the policy plan, the 
 37.21  nontransit element of the transportation chapter must include 
 37.22  the following: 
 37.23     (1) a statement of the needs and problems of the 
 37.24  metropolitan area with respect to the functions covered, 
 37.25  including the present and prospective demand for and constraints 
 37.26  on access to regional business concentrations and other major 
 37.27  activity centers and the constraints on and acceptable levels of 
 37.28  development and vehicular trip generation at such centers; 
 37.29     (2) the objectives of and the policies to be forwarded by 
 37.30  the policy plan; 
 37.31     (3) a general description of the physical facilities and 
 37.32  services to be developed; 
 37.33     (4) a statement as to the general location of physical 
 37.34  facilities and service areas; 
 37.35     (5) a general statement of timing and priorities in the 
 37.36  development of those physical facilities and service areas; 
 38.1      (6) a detailed statement, updated every two years, of 
 38.2   timing and priorities for improvements and expenditures needed 
 38.3   on the metropolitan highway system; and 
 38.4      (7) a general statement on the level of public expenditure 
 38.5   appropriate to the facilities. 
 38.6      The council shall develop the nontransit element in 
 38.7   consultation with the transportation advisory board and shall 
 38.8   transmit the results to the state department of transportation. 
 38.9      Sec. 34.  Minnesota Statutes 1994, section 473.446, 
 38.10  subdivision 1, is amended to read: 
 38.11     Subdivision 1.  [TAXATION WITHIN TRANSIT TAXING DISTRICT.] 
 38.12  ~~For the purposes of sections 473.404 to 473.449 and the~~ 
 38.13  ~~metropolitan transit system, except as otherwise provided in~~ 
 38.14  ~~this subdivision,~~ The council shall levy each year upon all 
 38.15  taxable property within the metropolitan transit taxing 
 38.16  district, defined in subdivision 2, a transit tax consisting of: 
 38.17     (a) an amount which shall be used for payment of ~~the~~ 
 38.18  ~~expenses of operating transit and paratransit service and to~~ 
 38.19  ~~provide for payment of~~ obligations issued before the date of 
 38.20  final enactment of this act by the council under former section 
 38.21  473.436, subdivision 6; 
 38.22     (b) an additional amount, if any, the council determines to 
 38.23  be necessary to provide for the full and timely payment of its 
 38.24  certificates of indebtedness and other obligations outstanding 
 38.25  on July 1, 1985, to which property taxes under this section have 
 38.26  been pledged; and 
 38.27     (c) an additional amount necessary to provide full and 
 38.28  timely payment of certificates of indebtedness, bonds, including 
 38.29  refunding bonds or other obligations issued ~~or to be issued~~ 
 38.30  before the date of final enactment of this act under section 
 38.31  473.39 by the council for purposes of acquisition and betterment 
 38.32  of property and other improvements of a capital nature and to 
 38.33  which the council has specifically pledged tax levies under this 
 38.34  clause. 
 38.35     The property tax levied by the council for general purposes 
 38.36  under clause (a) must not exceed the following amount ~~for the~~ 
 39.1   ~~years specified~~: 
 39.2      ~~(1) for taxes payable in 1995, the council's property tax~~ 
 39.3   ~~levy limitation for general transit purposes is equal to the~~ 
 39.4   ~~former regional transit board's property tax levy limitation for~~ 
 39.5   ~~general transit purposes under this subdivision, for taxes~~ 
 39.6   ~~payable in 1994, multiplied by an index for market valuation~~ 
 39.7   ~~changes equal to the total market valuation of all taxable~~ 
 39.8   ~~property located within the metropolitan transit taxing district~~ 
 39.9   ~~for the current assessment year divided by the total market~~ 
 39.10  ~~valuation of all taxable property located within the~~ 
 39.11  ~~metropolitan transit taxing district for the previous assessment~~ 
 39.12  ~~year; and~~ 
 39.13     ~~(2)~~ for taxes payable in 1996 and subsequent years, the 
 39.14  product of (i) the council's property tax levy limitation for 
 39.15  general transit purposes for the previous year determined under 
 39.16  this subdivision multiplied by (ii) an index for market 
 39.17  valuation changes equal to the total market valuation of all 
 39.18  taxable property located within the metropolitan transit taxing 
 39.19  district for the current taxes payable year divided by the total 
 39.20  market valuation of all taxable property located within the 
 39.21  metropolitan transit taxing district for the previous taxes 
 39.22  payable year.  ~~For the taxes payable year 1995, the index for~~ 
 39.23  ~~market valuation changes shall be multiplied by an amount equal~~ 
 39.24  ~~to the sum of the regional transit board's property tax levy~~ 
 39.25  ~~limitation for the taxes payable year 1994 and $160,665.  The~~ 
 39.26  ~~$160,665 increase shall be a permanent adjustment to the levy~~ 
 39.27  ~~limit base used in determining the regional transit board's~~ 
 39.28  ~~property tax levy limitation for general purposes for subsequent~~ 
 39.29  ~~taxes payable years.~~ 
 39.30     For the purpose of determining the council's property tax 
 39.31  levy limitation for general transit purposes under this 
 39.32  subdivision, "total market valuation" means the total market 
 39.33  valuation of all taxable property within the metropolitan 
 39.34  transit taxing district without valuation adjustments for fiscal 
 39.35  disparities (chapter 473F), tax increment financing (sections 
 39.36  469.174 to 469.179), and high voltage transmission lines 
 40.1   (section 273.425). 
 40.2      ~~The county auditor shall reduce the tax levied pursuant to~~ 
 40.3   ~~this subdivision on all property within statutory and home rule~~ 
 40.4   ~~charter cities and towns that receive full-peak service and~~ 
 40.5   ~~limited off-peak service by an amount equal to the tax levy that~~ 
 40.6   ~~would be produced by applying a rate of 0.510 percent of net tax~~ 
 40.7   ~~capacity on the property.  The county auditor shall reduce the~~ 
 40.8   ~~tax levied pursuant to this subdivision on all property within~~ 
 40.9   ~~statutory and home rule charter cities and towns that receive~~ 
 40.10  ~~limited peak service by an amount equal to the tax levy that~~ 
 40.11  ~~would be produced by applying a rate of 0.765 percent of net tax~~ 
 40.12  ~~capacity on the property.  The amounts so computed by the county~~ 
 40.13  ~~auditor shall be submitted to the commissioner of revenue as~~ 
 40.14  ~~part of the abstracts of tax lists required to be filed with the~~ 
 40.15  ~~commissioner under section 275.29.  Any prior year adjustments~~ 
 40.16  ~~shall also be certified in the abstracts of tax lists.  The~~ 
 40.17  ~~commissioner shall review the certifications to determine their~~ 
 40.18  ~~accuracy and may make changes in the certification as necessary~~ 
 40.19  ~~or return a certification to the county auditor for~~ 
 40.20  ~~corrections.  The commissioner shall pay to the council the~~ 
 40.21  ~~amounts certified by the county auditors on the dates provided~~ 
 40.22  ~~in section 273.1398.  There is annually appropriated from the~~ 
 40.23  ~~general fund in the state treasury to the department of revenue~~ 
 40.24  ~~the amounts necessary to make these payments.~~  
 40.25     ~~For the purposes of this subdivision, "full-peak and~~ 
 40.26  ~~limited off-peak service" means peak period regular route~~ 
 40.27  ~~service, plus weekday midday regular route service at intervals~~ 
 40.28  ~~longer than 60 minutes on the route with the greatest frequency;~~ 
 40.29  ~~and "limited peak period service" means peak period regular~~ 
 40.30  ~~route service only.~~  
 40.31     Sec. 35.  Minnesota Statutes 1994, section 473.446, 
 40.32  subdivision 2, is amended to read: 
 40.33     Subd. 2.  [TRANSIT TAXING DISTRICT.] The metropolitan 
 40.34  transit taxing district is hereby designated as that portion of 
 40.35  the metropolitan transit area lying within the following named 
 40.36  cities, towns, or unorganized territory within the counties 
 41.1   indicated: 
 41.2      (a) Anoka county.  Anoka, Blaine, Centerville, Columbia 
 41.3   Heights, Coon Rapids, Fridley, Circle Pines, Hilltop, Lexington, 
 41.4   Lino Lakes, Spring Lake Park; 
 41.5      (b) Carver county.  Chanhassen, the city of Chaska; 
 41.6      (c) Dakota county.  Apple Valley, Burnsville, Eagan, Inver 
 41.7   Grove Heights, Lilydale, Mendota, Mendota Heights, Rosemount, 
 41.8   South St. Paul, Sunfish Lake, West St. Paul; 
 41.9      (d) Ramsey county.  All of the territory within Ramsey 
 41.10  county; 
 41.11     (e) Hennepin county.  Bloomington, Brooklyn Center, 
 41.12  Brooklyn Park, Champlin, Chanhassen, Crystal, Deephaven, Eden 
 41.13  Prairie, Edina, Excelsior, Golden Valley, Greenwood, Hopkins, 
 41.14  Long Lake, Maple Grove, Medicine Lake, Minneapolis, Minnetonka, 
 41.15  Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, 
 41.16  Richfield, Robbinsdale, St. Anthony, St. Louis Park, Shorewood, 
 41.17  Spring Park, Tonka Bay, Wayzata, Woodland, the unorganized 
 41.18  territory of Hennepin county; 
 41.19     (f) Scott county.  Prior Lake, Savage, Shakopee; 
 41.20     (g) Washington county.  Baytown, the city of Stillwater, 
 41.21  White Bear Lake, Bayport, Birchwood, Cottage Grove, Dellwood, 
 41.22  Lake Elmo, Landfall, Mahtomedi, Newport, Oakdale, Oak Park 
 41.23  Heights, Pine Springs, St. Paul Park, Willernie, Woodbury. 
 41.24     ~~The metropolitan council in its sole discretion may provide~~ 
 41.25  ~~transit service by contract beyond the boundaries of the~~ 
 41.26  ~~metropolitan transit taxing district or to cities and towns~~ 
 41.27  ~~within the taxing district which are receiving financial~~ 
 41.28  ~~assistance under section 174.265, upon petition therefor by an~~ 
 41.29  ~~interested city, township or political subdivision within the~~ 
 41.30  ~~metropolitan transit area.  The metropolitan council may~~ 
 41.31  ~~establish such terms and conditions as it deems necessary and~~ 
 41.32  ~~advisable for providing the transit service, including such~~ 
 41.33  ~~combination of fares and direct payments by the petitioner as~~ 
 41.34  ~~will compensate the council for the full capital and operating~~ 
 41.35  ~~cost of the service and the related administrative activities of~~ 
 41.36  ~~the council.  The amount of the levy made by any municipality to~~ 
 42.1   ~~pay for the service shall be disregarded when calculation of~~ 
 42.2   ~~levies subject to limitations is made, provided that cities and~~ 
 42.3   ~~towns receiving financial assistance under section 174.265 shall~~ 
 42.4   ~~not make a special levy under this subdivision without having~~ 
 42.5   ~~first exhausted the available local transit funds as defined in~~ 
 42.6   ~~section 174.265.  The council shall not be obligated to extend~~ 
 42.7   ~~service beyond the boundaries of the taxing district, or to~~ 
 42.8   ~~cities and towns within the taxing district which are receiving~~ 
 42.9   ~~financial assistance under section 174.265, under any law or~~ 
 42.10  ~~contract unless or until payment therefor is received.~~ 
 42.11     Sec. 36.  Minnesota Statutes 1994, section 473.446, 
 42.12  subdivision 3, is amended to read: 
 42.13     Subd. 3.  [CERTIFICATION AND COLLECTION.] Each county 
 42.14  treasurer shall collect and make settlement of the taxes levied 
 42.15  under ~~subdivisions~~ subdivision 1 ~~and 1a~~ with the treasurer of 
 42.16  the council.  The levy of transit taxes pursuant to this section 
 42.17  shall not affect the amount or rate of taxes which may be levied 
 42.18  by any county or municipality or by the council for other 
 42.19  purposes authorized by law and shall be in addition to any other 
 42.20  property tax authorized by law. 
 42.21     Sec. 37.  Minnesota Statutes 1994, section 473.446, 
 42.22  subdivision 8, is amended to read: 
 42.23     Subd. 8.  [STATE REVIEW.] The council must certify its 
 42.24  property tax levy to the commissioner of revenue by August 1 of 
 42.25  the levy year.  The commissioner of revenue shall annually 
 42.26  determine whether the property tax for general transit purposes 
 42.27  certified by the council for levy following the adoption of its 
 42.28  budget is within the levy limitation imposed by subdivision 1.  
 42.29  ~~The commissioner shall also annually determine whether the~~ 
 42.30  ~~transit tax imposed on all taxable property within the~~ 
 42.31  ~~metropolitan transit area but outside of the metropolitan~~ 
 42.32  ~~transit taxing district is within the levy limitation imposed by~~ 
 42.33  ~~subdivision 1a.~~  The determination must be completed prior to 
 42.34  September 10 of each year.  If current information regarding 
 42.35  market valuation in any county is not transmitted to the 
 42.36  commissioner in a timely manner, the commissioner may estimate 
 43.1   the current market valuation within that county for purposes of 
 43.2   making the calculations. 
 43.3      Sec. 38.  [TRANSFER PROVISIONS.] 
 43.4      Subdivision 1.  [GENERAL.] The metropolitan council's 
 43.5   transit planning, coordinating, financing, and operating powers 
 43.6   and duties are transferred to the commissioner of 
 43.7   transportation.  Section 15.039 applies to the transfer of the 
 43.8   metropolitan council's powers and duties to the commissioner of 
 43.9   transportation to the extent practicable. 
 43.10     Subd. 2.  [METROPOLITAN COUNCIL RESPONSIBLE FOR REPAYMENT 
 43.11  OF OUTSTANDING DEBT.] Notwithstanding subdivision 1, the 
 43.12  metropolitan council remains responsible for repayment of any 
 43.13  outstanding debt related to the transit planning, coordination, 
 43.14  financing, and operations transferred from the council to the 
 43.15  commissioner of transportation, and may levy ad valorem taxes 
 43.16  each year in an amount sufficient to repay any outstanding debt. 
 43.17     Subd. 3.  [LEGISLATIVE PROPOSAL.] The commissioner shall 
 43.18  prepare and submit to the legislature by February 1, 1996, 
 43.19  proposed legislation to integrate the department's metropolitan 
 43.20  transit planning, coordination, financing, and operations with 
 43.21  the department's other transit duties and responsibilities. 
 43.22     Subd. 4.  [METROPOLITAN PLANNING ORGANIZATION.] By February 
 43.23  1, 1996, the commissioner shall prepare proposed legislation to 
 43.24  transfer the metropolitan council's responsibilities as the 
 43.25  metropolitan planning organization for public transit to the 
 43.26  commissioner of transportation. 
 43.27     Sec. 39.  [APPROPRIATION.] 
 43.28     $....... is appropriated from the general fund to the 
 43.29  commissioner of transportation for the biennium ending June 30, 
 43.30  1997, for purposes of this article. 
 43.31     Sec. 40.  [REPEALER.] 
 43.32     Minnesota Statutes 1994, sections 473.121, subdivisions 16, 
 43.33  18, 18a, 19, 20, and 20a; 473.371; 473.375; 473.382; 473.384; 
 43.34  473.385; 473.386; 473.387; 473.388; 473.39; 473.391; 473.392; 
 43.35  473.394; 473.399; 473.3993; 473.3994; 473.3997; 473.3998; 
 43.36  473.405; 473.4051; 473.407; 473.408; 473.409; 473.411; 473.415; 
 44.1   473.416; 473.418; 473.42; 473.436; 473.446, subdivision 1a; and 
 44.2   473.449, are repealed. 
 44.3      Sec. 41.  [APPLICATION.] 
 44.4      This article applies in the counties of Anoka, Carver, 
 44.5   Dakota, Hennepin, Ramsey, Scott, and Washington. 
 44.6                              ARTICLE 2
 44.7                        CONFORMING AMENDMENTS 
 44.8      Section 1.  Minnesota Statutes 1994, section 16B.58, 
 44.9   subdivision 7, is amended to read: 
 44.10     Subd. 7.  [SURCHARGE FOR VEHICLES OCCUPIED BY ONE PERSON.] 
 44.11  The commissioner shall impose a surcharge of 25 percent for 
 44.12  vehicles occupied by only one person parking in a state parking 
 44.13  facility in the capitol area, as described by section 15.50, 
 44.14  subdivision 2.  The revenue from this additional charge shall be 
 44.15  placed by the commissioner in a special account.  For the 
 44.16  benefit of employees employed in the capitol area, the money in 
 44.17  the account is appropriated to the commissioner and shall be 
 44.18  used by the commissioner in the following order of priority:  
 44.19  (1) to acquire or lease commuter vans pursuant to section 
 44.20  16B.56; (2) within limits and upon conditions the commissioner 
 44.21  determines to be necessary, to reimburse state agencies for all 
 44.22  costs resulting from agreements with the ~~metropolitan transit~~ 
 44.23  ~~commission, or its successor,~~ commissioner of transportation or 
 44.24  other transit operators pursuant to section ~~473.409~~ 174.712, 
 44.25  including costs related to employees employed outside the 
 44.26  capitol area; and (3) to be used for maintaining and improving 
 44.27  parking lots or facilities owned or operated by the state.  The 
 44.28  commissioner may adopt rules necessary to administer the 
 44.29  provisions of this subdivision, subdivision 5, and section 
 44.30  ~~473.409~~ 174.712.  The rules may exempt from the surcharge 
 44.31  vehicles operated by persons whom the commissioner determines 
 44.32  have job requirements that make car pooling impractical. 
 44.33     Sec. 2.  Minnesota Statutes 1994, section 169.781, 
 44.34  subdivision 1, is amended to read: 
 44.35     Subdivision 1.  [DEFINITIONS.] For purposes of sections 
 44.36  169.781 to 169.783: 
 45.1      (a) "Commercial motor vehicle" means: 
 45.2      (1) a commercial motor vehicle as defined in section 
 45.3   169.01, subdivision 75, paragraph (a); and 
 45.4      (2) each vehicle in a combination of more than 26,000 
 45.5   pounds. 
 45.6      "Commercial motor vehicle" does not include (1) a school 
 45.7   bus or Head Start bus displaying a certificate under section 
 45.8   169.451, (2) a public transit bus operated by the ~~metropolitan~~ 
 45.9   ~~council~~ department of transportation or by a local transit 
 45.10  commission created in chapter 458A, or (3) a motor vehicle with 
 45.11  a gross weight of not more than 26,000 pounds, carrying in bulk 
 45.12  tanks a total of not more than 200 gallons of petroleum products 
 45.13  or liquid fertilizer or pesticide. 
 45.14     (b) "Commissioner" means the commissioner of public safety. 
 45.15     (c) "Owner" means a person who owns, or has control, under 
 45.16  a lease of more than 30 days' duration, of one or more 
 45.17  commercial motor vehicles. 
 45.18     (d) "Storage semitrailer" means a semitrailer that (1) is 
 45.19  used exclusively to store property at a location not on a street 
 45.20  or highway, (2) does not contain any load when moved on a street 
 45.21  or highway, (3) is operated only during daylight hours, and (4) 
 45.22  is marked on each side of the semitrailer "storage only" in 
 45.23  letters at least six inches high. 
 45.24     (e) "Building mover vehicle" means a vehicle owned or 
 45.25  leased by a building mover as defined in section 221.81, 
 45.26  subdivision 1, paragraph (a), and used exclusively for moving 
 45.27  buildings. 
 45.28     Sec. 3.  Minnesota Statutes 1994, section 169.791, 
 45.29  subdivision 5, is amended to read: 
 45.30     Subd. 5.  [EXEMPTIONS.] Buses or other commercial vehicles 
 45.31  operated by the ~~metropolitan council~~ department of 
 45.32  transportation, commercial vehicles required to file proof of 
 45.33  insurance pursuant to chapter 221, and school buses as defined 
 45.34  in section 171.01, subdivision 21, are exempt from this section. 
 45.35     Sec. 4.  Minnesota Statutes 1994, section 169.792, 
 45.36  subdivision 11, is amended to read: 
 46.1      Subd. 11.  [EXEMPTIONS.] Buses or other commercial vehicles 
 46.2   operated by the ~~metropolitan council~~ department of 
 46.3   transportation, commercial vehicles required to file proof of 
 46.4   insurance pursuant to chapter 221, and school buses as defined 
 46.5   in section 171.01, subdivision 21, are exempt from this section. 
 46.6      Sec. 5.  Minnesota Statutes 1994, section 174.06, 
 46.7   subdivision 1, is amended to read: 
 46.8      Subdivision 1.  [DEPARTMENT OF HIGHWAYS.] All powers, 
 46.9   duties and functions heretofore vested in or imposed on the 
 46.10  commissioner of highways or the department of highways by 
 46.11  chapters 160, 161, 162, 163, 164, 165, 167, 169, 173, or 
 46.12  ~~sections 473.404 to 473.449 or~~ any other law relating to the 
 46.13  duties and powers of the commissioner of highways are 
 46.14  transferred to, vested in, and imposed on the commissioner of 
 46.15  transportation.  The position of the commissioner of highways 
 46.16  and the department of highways as heretofore constituted are 
 46.17  abolished. 
 46.18     Sec. 6.  Minnesota Statutes 1994, section 216C.15, 
 46.19  subdivision 1, is amended to read: 
 46.20     Subdivision 1.  [PRIORITIES AND REQUIREMENTS.] The 
 46.21  commissioner shall maintain an emergency conservation and 
 46.22  allocation plan.  The plan shall provide a variety of strategies 
 46.23  and staged conservation measures to reduce energy use and in the 
 46.24  event of an energy supply emergency, shall establish guidelines 
 46.25  and criteria for allocation of fuels to priority users.  The 
 46.26  plan shall contain alternative conservation actions and 
 46.27  allocation plans to reasonably meet various foreseeable shortage 
 46.28  circumstances and allow a choice of appropriate responses.  The 
 46.29  plan shall be consistent with requirements of federal emergency 
 46.30  energy conservation and allocation laws and regulations, shall 
 46.31  be based on reasonable energy savings or transfers from scarce 
 46.32  energy resources and shall: 
 46.33     (a) give priority to individuals, institutions, 
 46.34  agriculture, businesses, and public transit under contract with 
 46.35  the commissioner of transportation ~~or the metropolitan council~~ 
 46.36  which demonstrate they have engaged in energy-saving measures 
 47.1   and shall include provisions to insure that: 
 47.2      (1) immediate allocations to individuals, institutions, 
 47.3   agriculture, businesses, and public transit be based on needs at 
 47.4   energy conservation levels; 
 47.5      (2) successive allocations to individuals, institutions, 
 47.6   agriculture, businesses, and public transit be based on needs 
 47.7   after implementation of required action to increase energy 
 47.8   conservation; and 
 47.9      (3) needs of individuals, institutions, and public transit 
 47.10  are adjusted to insure the health and welfare of the young, old 
 47.11  and infirm; 
 47.12     (b) insure maintenance of reasonable job safety conditions 
 47.13  and avoid environmental sacrifices; 
 47.14     (c) establish programs, controls, standards, priorities or 
 47.15  quotas for the allocation, conservation and consumption of 
 47.16  energy resources; and for the suspension and modification of 
 47.17  existing standards and the establishment of new standards 
 47.18  affecting or affected by the use of energy resources, including 
 47.19  those related to the type and composition of energy sources, and 
 47.20  to the hours and days during which public buildings, commercial 
 47.21  and industrial establishments, and other energy consuming 
 47.22  facilities may or are required to remain open; 
 47.23     (d) establish programs to control the use, sale or 
 47.24  distribution of commodities, materials, goods or services; 
 47.25     (e) establish regional programs and agreements for the 
 47.26  purpose of coordinating the energy resources, programs and 
 47.27  actions of the state with those of the federal government, of 
 47.28  local governments, and of other states and localities; 
 47.29     (f) determine at what level of an energy supply emergency 
 47.30  situation the pollution control agency shall be requested to ask 
 47.31  the governor to petition the president for a temporary emergency 
 47.32  suspension of air quality standards as required by the Clean Air 
 47.33  Act, United States Code, title 42, section 7410f; and 
 47.34     (g) establish procedures for fair and equitable review of 
 47.35  complaints and requests for special exemptions regarding 
 47.36  emergency conservation measures or allocations. 
 48.1      Sec. 7.  Minnesota Statutes 1994, section 221.022, is 
 48.2   amended to read: 
 48.3      221.022 [EXCEPTION.] 
 48.4      The powers granted to the board under sections 221.011 to 
 48.5   221.296 do not include the power to regulate any service or 
 48.6   vehicles operated by the ~~metropolitan council~~ department of 
 48.7   transportation or to regulate passenger transportation service 
 48.8   provided under contract to the department ~~or the metropolitan~~ 
 48.9   ~~council~~.  A provider of passenger transportation service under 
 48.10  contract to the department ~~or the metropolitan council~~ may not 
 48.11  provide charter service without first having obtained a permit 
 48.12  to operate as a charter carrier. 
 48.13     Sec. 8.  Minnesota Statutes 1994, section 221.025, is 
 48.14  amended to read: 
 48.15     221.025 [EXEMPTIONS.] 
 48.16     The provisions of this chapter requiring a certificate or 
 48.17  permit to operate as a motor carrier do not apply to the 
 48.18  intrastate transportation described below:  
 48.19     (a) the transportation of students to or from school or 
 48.20  school activities in a school bus inspected and certified under 
 48.21  section 169.451 and the transportation of children or parents to 
 48.22  or from a Head Start facility or Head Start activity in a Head 
 48.23  Start bus inspected and certified under section 169.451; 
 48.24     (b) the transportation of solid waste, as defined in 
 48.25  section 116.06, subdivision 22, including recyclable materials 
 48.26  and waste tires, except that the term "hazardous waste" has the 
 48.27  meaning given it in section 221.011, subdivision 31; 
 48.28     (c) a commuter van as defined in section 221.011, 
 48.29  subdivision 27; 
 48.30     (d) authorized emergency vehicles as defined in section 
 48.31  169.01, subdivision 5, including ambulances; and tow trucks 
 48.32  equipped with proper and legal warning devices when picking up 
 48.33  and transporting (1) disabled or wrecked motor vehicles or (2) 
 48.34  vehicles towed or transported under a towing order issued by a 
 48.35  public employee authorized to issue a towing order; 
 48.36     (e) the transportation of grain samples under conditions 
 49.1   prescribed by the board; 
 49.2      (f) the delivery of agricultural lime; 
 49.3      (g) the transportation of dirt and sod within an area 
 49.4   having a 50-mile radius from the home post office of the person 
 49.5   performing the transportation; 
 49.6      (h) the transportation of sand, gravel, bituminous asphalt 
 49.7   mix, concrete ready mix, concrete blocks or tile and the mortar 
 49.8   mix to be used with the concrete blocks or tile, or crushed rock 
 49.9   to or from the point of loading or a place of gathering within 
 49.10  an area having a 50-mile radius from that person's home post 
 49.11  office or a 50-mile radius from the site of construction or 
 49.12  maintenance of public roads and streets; 
 49.13     (i) the transportation of pulpwood, cordwood, mining 
 49.14  timber, poles, posts, decorator evergreens, wood chips, sawdust, 
 49.15  shavings, and bark from the place where the products are 
 49.16  produced to the point where they are to be used or shipped; 
 49.17     (j) the transportation of fresh vegetables from farms to 
 49.18  canneries or viner stations, from viner stations to canneries, 
 49.19  or from canneries to canneries during the harvesting, canning, 
 49.20  or packing season, or transporting sugar beets, wild rice, or 
 49.21  rutabagas from the field of production to the first place of 
 49.22  delivery or unloading, including a processing plant, warehouse, 
 49.23  or railroad siding; 
 49.24     (k) the transportation of property or freight, other than 
 49.25  household goods and petroleum products in bulk, entirely within 
 49.26  the corporate limits of a city or between contiguous cities 
 49.27  except as provided in section 221.296; 
 49.28     (l) the transportation of unprocessed dairy products in 
 49.29  bulk within an area having a 100-mile radius from the home post 
 49.30  office of the person providing the transportation; 
 49.31     (m) the transportation of agricultural, horticultural, 
 49.32  dairy, livestock, or other farm products within an area having a 
 49.33  25-mile radius from the person's home post office and the 
 49.34  carrier may transport other commodities within the 25-mile 
 49.35  radius if the destination of each haul is a farm; 
 49.36     (n) passenger transportation service that is not charter 
 50.1   service and that is under contract to and with operating 
 50.2   assistance from the department ~~or the metropolitan council~~; 
 50.3      (o) the transportation of newspapers, as defined in section 
 50.4   331A.01, subdivision 5, telephone books, handbills, circulars, 
 50.5   or pamphlets in a vehicle with a gross vehicle weight of 10,000 
 50.6   pounds or less; and 
 50.7      (p) transportation of potatoes from the field of 
 50.8   production, or a storage site owned or otherwise controlled by 
 50.9   the producer, to the first place of processing. 
 50.10     The exemptions provided in this section apply to a person 
 50.11  only while the person is exclusively engaged in exempt 
 50.12  transportation. 
 50.13     Sec. 9.  Minnesota Statutes 1994, section 221.031, 
 50.14  subdivision 3a, is amended to read: 
 50.15     Subd. 3a.  [CONTRACTORS OR RECIPIENTS OF TRANSPORTATION 
 50.16  ASSISTANCE.] Notwithstanding subdivision 3, providers of 
 50.17  passenger transportation service under contract to and with 
 50.18  operating assistance from the department ~~or the metropolitan~~ 
 50.19  ~~council~~ must comply with rules for driver qualifications; 
 50.20  driving of motor vehicles; parts and accessories necessary for 
 50.21  safe operation; hours of service of drivers; inspection, repair, 
 50.22  and maintenance; and the rules adopted in section 221.0314, 
 50.23  subdivision 8, for accident reporting.  
 50.24     This subdivision does not apply to (1) a local transit 
 50.25  commission, (2) a transit authority created by the legislature, 
 50.26  (3) special transportation service certified by the commissioner 
 50.27  under section 174.30, or (4) special transportation service 
 50.28  defined in section 174.29, subdivision 1, when provided by a 
 50.29  volunteer driver operating a private passenger vehicle defined 
 50.30  in section 169.01, subdivision 3a. 
 50.31     Sec. 10.  Minnesota Statutes 1994, section 221.041, 
 50.32  subdivision 4, is amended to read: 
 50.33     Subd. 4.  [NONAPPLICABILITY.] This section does not apply 
 50.34  to any regular route passenger transportation being performed 
 50.35  with operating assistance provided by the ~~metropolitan council~~ 
 50.36  department of transportation. 
 51.1      Sec. 11.  Minnesota Statutes 1994, section 221.071, 
 51.2   subdivision 1, is amended to read: 
 51.3      Subdivision 1.  [CONSIDERATIONS; TEMPORARY CERTIFICATES; 
 51.4   AMENDING.] If the board finds from the evidence that the 
 51.5   petitioner is fit and able to properly perform the services 
 51.6   proposed and that public convenience and necessity require the 
 51.7   granting of the petition or a part of the petition, it shall 
 51.8   issue a certificate of public convenience and necessity to the 
 51.9   petitioner.  In determining whether a certificate should be 
 51.10  issued, the board shall give primary consideration to the 
 51.11  interests of the public that might be affected, to the 
 51.12  transportation service being furnished by a railroad which may 
 51.13  be affected by the granting of the certificate, and to the 
 51.14  effect which the granting of the certificate will have upon 
 51.15  other transportation service essential to the communities which 
 51.16  might be affected by the granting of the certificate.  The board 
 51.17  may issue a certificate as applied for or issue it for a part 
 51.18  only of the authority sought and may attach to the authority 
 51.19  granted terms and conditions as in its judgment public 
 51.20  convenience and necessity may require.  If the petitioner is 
 51.21  seeking authority to operate regular route transit service 
 51.22  wholly within the seven-county metropolitan area with operating 
 51.23  assistance provided by the ~~metropolitan council~~ department of 
 51.24  transportation, the board shall consider only whether the 
 51.25  petitioner is fit and able to perform the proposed service.  The 
 51.26  operating authority granted to such a petitioner must be the 
 51.27  operating authority for which the petitioner is receiving 
 51.28  operating assistance from the ~~metropolitan council~~ department of 
 51.29  transportation.  A carrier receiving operating assistance from 
 51.30  the ~~metropolitan council~~ department of transportation may amend 
 51.31  the certificate to provide for additional routes by filing a 
 51.32  copy of the amendment with the board, and approval of the 
 51.33  amendment by the board is not required if the additional service 
 51.34  is provided with operating assistance from the ~~metropolitan~~ 
 51.35  ~~council~~ department of transportation.  
 51.36     The board may grant a temporary certificate, ex parte, 
 52.1   valid for a period not exceeding 180 days, upon a showing that 
 52.2   no regular route common carrier or petroleum carrier is then 
 52.3   authorized to serve on the route sought, that no other petition 
 52.4   is on file with the board covering the route, and that a need 
 52.5   for the proposed service exists. 
 52.6      A certificate may be amended by the board on ex parte 
 52.7   petition and payment of a $25 fee to the commissioner, to grant 
 52.8   an additional or alternate route if there is no other means of 
 52.9   transportation over the proposed additional route or between its 
 52.10  termini, and the proposed additional route does not exceed ten 
 52.11  miles in length. 
 52.12     Sec. 12.  Minnesota Statutes 1994, section 275.066, is 
 52.13  amended to read: 
 52.14     275.066 [SPECIAL TAXING DISTRICTS; DEFINITION.] 
 52.15     For the purposes of property taxation and property tax 
 52.16  state aids, the term "special taxing districts" includes the 
 52.17  following entities: 
 52.18     (1) watershed districts under chapter 103D; 
 52.19     (2) sanitary districts under sections 115.18 to 115.37; 
 52.20     (3) regional sanitary sewer districts under sections 115.61 
 52.21  to 115.67; 
 52.22     (4) regional public library districts under section 
 52.23  134.201; 
 52.24     (5) park districts under chapter 398; 
 52.25     (6) regional railroad authorities under chapter 398A; 
 52.26     (7) hospital districts under sections 447.31 to 447.38; 
 52.27     (8) St. Cloud metropolitan transit commission under 
 52.28  sections 458A.01 to 458A.15; 
 52.29     (9) Duluth transit authority under sections 458A.21 to 
 52.30  458A.37; 
 52.31     (10) regional development commissions under sections 
 52.32  462.381 to 462.398; 
 52.33     (11) housing and redevelopment authorities under sections 
 52.34  469.001 to 469.047; 
 52.35     (12) port authorities under sections 469.048 to 469.068; 
 52.36     (13) economic development authorities under sections 
 53.1   469.090 to 469.1081; 
 53.2      (14) metropolitan council under sections 473.122 to 
 53.3   473.249; 
 53.4      (15) ~~regional~~ metropolitan-area transit ~~board under~~ 
 53.5   ~~sections 473.371 to 473.449~~ services under section 473.446 and 
 53.6   chapter 174; 
 53.7      (16) metropolitan airports commission under sections 
 53.8   473.601 to 473.680; 
 53.9      (17) metropolitan mosquito control commission under 
 53.10  sections 473.701 to 473.716; 
 53.11     (18) Morrison county rural development financing authority 
 53.12  under Laws 1982, chapter 437, section 1; 
 53.13     (19) Croft Historical Park District under Laws 1984, 
 53.14  chapter 502, article 13, section 6; 
 53.15     (20) East Lake county medical clinic district under Laws 
 53.16  1989, chapter 211, sections 1 to 6; 
 53.17     (21) Floodwood area ambulance district under Laws 1993, 
 53.18  chapter 375, article 5, section 39; and 
 53.19     (22) any other political subdivision of the state of 
 53.20  Minnesota, excluding counties, school districts, cities, and 
 53.21  towns, that has the power to adopt and certify a property tax 
 53.22  levy to the county auditor, as determined by the commissioner of 
 53.23  revenue. 
 53.24     Sec. 13.  Minnesota Statutes 1994, section 296.02, 
 53.25  subdivision 1a, is amended to read: 
 53.26     Subd. 1a.  [TRANSIT SYSTEMS AND ALTERNATIVE FUELS EXEMPT.] 
 53.27  The provisions of subdivision 1 do not apply to (1) gasoline 
 53.28  purchased by a transit system or transit provider receiving 
 53.29  financial assistance or reimbursement under section 174.24, 
 53.30  174.702, or 256B.0625, subdivision 17, ~~or 473.384~~ or (2) sales 
 53.31  of compressed natural gas or propane for use in vehicles 
 53.32  displaying a valid annual alternate fuel permit.  
 53.33     Sec. 14.  Minnesota Statutes 1994, section 296.025, 
 53.34  subdivision 1a, is amended to read: 
 53.35     Subd. 1a.  [TRANSIT SYSTEMS AND ALTERNATIVE FUELS EXEMPT.] 
 53.36  The provisions of subdivision 1 do not apply to (1) special fuel 
 54.1   purchased by a transit system or transit provider receiving 
 54.2   financial assistance or reimbursement under section 
 54.3   174.24, 174.702, or 256B.0625, subdivision 17, ~~or 473.384~~ or (2) 
 54.4   sales of compressed natural gas or propane for use in vehicles 
 54.5   displaying a valid annual alternate fuel permit.  
 54.6      Sec. 15.  Minnesota Statutes 1994, section 297A.25, 
 54.7   subdivision 7, is amended to read: 
 54.8      Subd. 7.  [PETROLEUM PRODUCTS.] The gross receipts from the 
 54.9   sale of and storage, use or consumption of the following 
 54.10  petroleum products are exempt:  
 54.11     (1) products upon which a tax has been imposed and paid 
 54.12  under the provisions of chapter 296, and no refund has been or 
 54.13  will be allowed because the buyer used the fuel for nonhighway 
 54.14  use, 
 54.15     (2) products which are used in the improvement of 
 54.16  agricultural land by constructing, maintaining, and repairing 
 54.17  drainage ditches, tile drainage systems, grass waterways, water 
 54.18  impoundment, and other erosion control structures; 
 54.19     (3) products purchased by a transit system receiving 
 54.20  financial assistance under section 174.24 or ~~473.384~~ 174.702; or 
 54.21     (4) products used in a passenger snowmobile, as defined in 
 54.22  section 296.01, subdivision 27a, for off-highway business use as 
 54.23  part of the operations of a resort as provided under section 
 54.24  296.18, subdivision 1, clause (2). 
 54.25     Sec. 16.  Minnesota Statutes 1994, section 297A.25, 
 54.26  subdivision 11, is amended to read: 
 54.27     Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
 54.28  all sales, including sales in which title is retained by a 
 54.29  seller or a vendor or is assigned to a third party under an 
 54.30  installment sale or lease purchase agreement under section 
 54.31  465.71, of tangible personal property to, and all storage, use 
 54.32  or consumption of such property by, the United States and its 
 54.33  agencies and instrumentalities, the University of Minnesota, 
 54.34  state universities, community colleges, technical colleges, 
 54.35  state academies, the Minnesota center for arts education, and 
 54.36  school districts are exempt. 
 55.1      As used in this subdivision, "school districts" means 
 55.2   public school entities and districts of every kind and nature 
 55.3   organized under the laws of the state of Minnesota, including, 
 55.4   without limitation, school districts, intermediate school 
 55.5   districts, education districts, educational cooperative service 
 55.6   units, secondary vocational cooperative centers, special 
 55.7   education cooperatives, joint purchasing cooperatives, 
 55.8   telecommunication cooperatives, regional management information 
 55.9   centers, technical colleges, joint vocational technical 
 55.10  districts, and any instrumentality of a school district, as 
 55.11  defined in section 471.59. 
 55.12     Sales exempted by this subdivision include sales under 
 55.13  section 297A.01, subdivision 3, paragraph (f), but do not 
 55.14  include sales under section 297A.01, subdivision 3, paragraph 
 55.15  (j), clause (vii).  
 55.16     Sales to hospitals and nursing homes owned and operated by 
 55.17  political subdivisions of the state are exempt under this 
 55.18  subdivision.  
 55.19     The sales to and exclusively for the use of libraries of 
 55.20  books, periodicals, audio-visual materials and equipment, 
 55.21  photocopiers for use by the public, and all ~~cataloging~~ 
 55.22  cataloguing and circulation equipment, and ~~cataloging~~ 
 55.23  cataloguing and circulation software for library use are exempt 
 55.24  under this subdivision.  For purposes of this paragraph 
 55.25  "libraries" means libraries as defined in section 134.001, 
 55.26  county law libraries under chapter 134A, the state library under 
 55.27  section 480.09, and the legislative reference library. 
 55.28     Sales of supplies and equipment used in the operation of an 
 55.29  ambulance service owned and operated by a political subdivision 
 55.30  of the state are exempt under this subdivision provided that the 
 55.31  supplies and equipment are used in the course of providing 
 55.32  medical care.  Sales to a political subdivision of repair and 
 55.33  replacement parts for emergency rescue vehicles and fire trucks 
 55.34  and apparatus are exempt under this subdivision.  
 55.35     Sales to a political subdivision of machinery and 
 55.36  equipment, except for motor vehicles, used directly for mixed 
 56.1   municipal solid waste collection and disposal services at a 
 56.2   solid waste disposal facility as defined in section 115A.03, 
 56.3   subdivision 10, are exempt under this subdivision.  
 56.4      Sales to political subdivisions of chore and homemaking 
 56.5   services to be provided to elderly ~~or disabled~~ individuals or 
 56.6   persons with disabilities are exempt. 
 56.7      This exemption shall not apply to building, construction or 
 56.8   reconstruction materials purchased by a contractor or a 
 56.9   subcontractor as a part of a lump-sum contract or similar type 
 56.10  of contract with a guaranteed maximum price covering both labor 
 56.11  and materials for use in the construction, alteration, or repair 
 56.12  of a building or facility.  This exemption does not apply to 
 56.13  construction materials purchased by tax exempt entities or their 
 56.14  contractors to be used in constructing buildings or facilities 
 56.15  which will not be used principally by the tax exempt entities. 
 56.16     This exemption does not apply to the leasing of a motor 
 56.17  vehicle as defined in section 297B.01, subdivision 5, except for 
 56.18  leases entered into by the United States or its agencies or 
 56.19  instrumentalities.  
 56.20     The tax imposed on sales to political subdivisions of the 
 56.21  state under this section applies to all political subdivisions 
 56.22  other than those explicitly exempted under this subdivision, 
 56.23  notwithstanding section 115A.69, subdivision 6, 116A.25, 
 56.24  360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
 56.25  469.127, ~~473.394,~~ 473.448, 473.545, or 473.608 or any other law 
 56.26  to the contrary enacted before 1992. 
 56.27     Sales exempted by this subdivision include sales made to 
 56.28  other states or political subdivisions of other states, if the 
 56.29  sale would be exempt from taxation if it occurred in that state, 
 56.30  but do not include sales under section 297A.01, subdivision 3, 
 56.31  paragraphs (c) and (e). 
 56.32     Sec. 17.  Minnesota Statutes 1994, section 297B.09, 
 56.33  subdivision 1, is amended to read: 
 56.34     Subdivision 1.  [GENERAL FUND SHARE.] (a) Money collected 
 56.35  and received under this chapter must be deposited in the state 
 56.36  treasury and credited to the general fund.  The amounts 
 57.1   collected and received shall be credited as provided in this 
 57.2   subdivision, and transferred from the general fund on July 15 
 57.3   and February 15 of each fiscal year.  The commissioner of 
 57.4   finance must make each transfer based upon the actual receipts 
 57.5   of the preceding six calendar months and include the interest 
 57.6   earned during that six-month period.  The commissioner of 
 57.7   finance may establish a quarterly or other schedule providing 
 57.8   for more frequent payments to the transit assistance fund if the 
 57.9   commissioner determines it is necessary or desirable to provide 
 57.10  for the cash flow needs of the recipients of money from the 
 57.11  transit assistance fund.  
 57.12     (b) Twenty-five percent of the money collected and received 
 57.13  under this chapter after June 30, 1990, and before July 1, 1991, 
 57.14  must be transferred to the highway user tax distribution fund 
 57.15  and the transit assistance fund for apportionment as follows:  
 57.16  75 percent must be transferred to the highway user tax 
 57.17  distribution fund for apportionment in the same manner and for 
 57.18  the same purposes as other money in that fund, and the remaining 
 57.19  25 percent of the money must be transferred to the transit 
 57.20  assistance fund to be appropriated to the commissioner of 
 57.21  transportation for transit assistance within the state ~~and to~~ 
 57.22  ~~the metropolitan council~~.  
 57.23     (c) The distributions under this subdivision to the highway 
 57.24  user tax distribution fund until June 30, 1991, and to the trunk 
 57.25  highway fund thereafter, must be reduced by the amount necessary 
 57.26  to fund the appropriation under section 41A.09, subdivision 1.  
 57.27  For the fiscal years ending June 30, 1988, and June 30, 1989, 
 57.28  the commissioner of finance, before making the transfers 
 57.29  required on July 15 and January 15 of each year, shall estimate 
 57.30  the amount required to fund the appropriation under section 
 57.31  41A.09, subdivision 1, for the six-month period for which the 
 57.32  transfer is being made.  The commissioner shall then reduce the 
 57.33  amount transferred to the highway user tax distribution fund by 
 57.34  the amount of that estimate.  The commissioner shall reduce the 
 57.35  estimate for any six-month period by the amount by which the 
 57.36  estimate for the previous six-month period exceeded the amount 
 58.1   needed to fund the appropriation under section 41A.09, 
 58.2   subdivision 1, for that previous six-month period.  If at any 
 58.3   time during a six-month period in those fiscal years the amount 
 58.4   of reduction in the transfer to the highway user tax 
 58.5   distribution fund is insufficient to fund the appropriation 
 58.6   under section 41A.09, subdivision 1, for that period, the 
 58.7   commissioner shall transfer to the general fund from the highway 
 58.8   user tax distribution fund an additional amount sufficient to 
 58.9   fund the appropriation for that period, but the additional 
 58.10  amount so transferred to the general fund in a six-month period 
 58.11  may not exceed the amount transferred to the highway user tax 
 58.12  distribution fund for that six-month period. 
 58.13     Sec. 18.  Minnesota Statutes 1994, section 352.01, 
 58.14  subdivision 2a, is amended to read: 
 58.15     Subd. 2a.  [INCLUDED EMPLOYEES.] (a) "State employee" 
 58.16  includes: 
 58.17     (1) employees of the Minnesota historical society; 
 58.18     (2) employees of the state horticultural society; 
 58.19     (3) employees of the Disabled American Veterans, Department 
 58.20  of Minnesota, Veterans of Foreign Wars, Department of Minnesota, 
 58.21  if employed before July 1, 1963; 
 58.22     (4) employees of the Minnesota crop improvement 
 58.23  association; 
 58.24     (5) employees of the adjutant general who are paid from 
 58.25  federal funds and who are not covered by any federal civilian 
 58.26  employees retirement system; 
 58.27     (6) employees of the state universities employed under the 
 58.28  university activities program; 
 58.29     (7) currently contributing employees covered by the system 
 58.30  who are temporarily employed by the legislature during a 
 58.31  legislative session or any currently contributing employee 
 58.32  employed for any special service as defined in clause (8) of 
 58.33  subdivision 2b; 
 58.34     (8) employees of the armory building commission; 
 58.35     (9) permanent employees of the legislature and persons 
 58.36  employed or designated by the legislature or by a legislative 
 59.1   committee or commission or other competent authority to conduct 
 59.2   a special inquiry, investigation, examination, or installation; 
 59.3      (10) trainees who are employed on a full-time established 
 59.4   training program performing the duties of the classified 
 59.5   position for which they will be eligible to receive immediate 
 59.6   appointment at the completion of the training period; 
 59.7      (11) employees of the Minnesota safety council; 
 59.8      (12) any employees on authorized leave of absence from the 
 59.9   transit operating division of the former metropolitan transit 
 59.10  commission who are employed by the labor organization which is 
 59.11  the exclusive bargaining agent representing employees of the 
 59.12  transit operating division; 
 59.13     (13) employees of the metropolitan council, metropolitan 
 59.14  parks and open space commission, metropolitan sports facilities 
 59.15  commission, or the metropolitan mosquito control commission 
 59.16  unless excluded or covered by another public pension fund or 
 59.17  plan under section 473.141, subdivision 12, or former section 
 59.18  473.415, subdivision 3; 
 59.19     (14) judges of the tax court; and 
 59.20     (15) personnel employed on June 30, 1992, by the University 
 59.21  of Minnesota in the management, operation, or maintenance of its 
 59.22  heating plant facilities, whose employment transfers to an 
 59.23  employer assuming operation of the heating plant facilities, so 
 59.24  long as the person is employed at the University of Minnesota 
 59.25  heating plant by that employer or by its successor organization. 
 59.26     (b) Employees specified in paragraph (a), clause (15), are 
 59.27  included employees under paragraph (a) providing that employer 
 59.28  and employee contributions are made in a timely manner in the 
 59.29  amounts required by section 352.04.  Employee contributions must 
 59.30  be deducted from salary.  Employer contributions are the sole 
 59.31  obligation of the employer assuming operation of the University 
 59.32  of Minnesota heating plant facilities or any successor 
 59.33  organizations to that employer. 
 59.34     Sec. 19.  Minnesota Statutes 1994, section 352.01, 
 59.35  subdivision 2b, is amended to read: 
 59.36     Subd. 2b.  [EXCLUDED EMPLOYEES.] "State employee" does not 
 60.1   include: 
 60.2      (1) elective state officers; 
 60.3      (2) students employed by the University of Minnesota, the 
 60.4   state universities, and community colleges unless approved for 
 60.5   coverage by the board of regents, the state university board, or 
 60.6   the state board for community colleges, as the case may be; 
 60.7      (3) employees who are eligible for membership in the state 
 60.8   teachers retirement association except employees of the 
 60.9   department of education who have chosen or may choose to be 
 60.10  covered by the Minnesota state retirement system instead of the 
 60.11  teachers retirement association; 
 60.12     (4) employees of the University of Minnesota who are 
 60.13  excluded from coverage by action of the board of regents; 
 60.14     (5) officers and enlisted personnel in the national guard 
 60.15  and the naval militia who are assigned to permanent peacetime 
 60.16  duty and who under federal law are or are required to be members 
 60.17  of a federal retirement system; 
 60.18     (6) election officers; 
 60.19     (7) persons engaged in public work for the state but 
 60.20  employed by contractors when the performance of the contract is 
 60.21  authorized by the legislature or other competent authority; 
 60.22     (8) officers and employees of the senate and house of 
 60.23  representatives or a legislative committee or commission who are 
 60.24  temporarily employed; 
 60.25     (9) receivers, jurors, notaries public, and court employees 
 60.26  who are not in the judicial branch as defined in section 43A.02, 
 60.27  subdivision 25, except referees and adjusters employed by the 
 60.28  department of labor and industry; 
 60.29     (10) patient and inmate help in state charitable, penal, 
 60.30  and correctional institutions including the Minnesota veterans 
 60.31  home; 
 60.32     (11) persons employed for professional services where the 
 60.33  service is incidental to regular professional duties and whose 
 60.34  compensation is paid on a per diem basis; 
 60.35     (12) employees of the Sibley House Association; 
 60.36     (13) the members of any state board or commission who serve 
 61.1   the state intermittently and are paid on a per diem basis; the 
 61.2   secretary, secretary-treasurer, and treasurer of those boards if 
 61.3   their compensation is $5,000 or less per year, or, if they are 
 61.4   legally prohibited from serving more than three years; and the 
 61.5   board of managers of the state agricultural society and its 
 61.6   treasurer unless the treasurer is also its full-time secretary; 
 61.7      (14) state troopers; 
 61.8      (15) temporary employees of the Minnesota state fair 
 61.9   employed on or after July 1 for a period not to extend beyond 
 61.10  October 15 of that year; and persons employed at any time by the 
 61.11  state fair administration for special events held on the 
 61.12  fairgrounds; 
 61.13     (16) emergency employees in the classified service; except 
 61.14  that if an emergency employee, within the same pay period, 
 61.15  becomes a provisional or probationary employee on other than a 
 61.16  temporary basis, the employee shall be considered a "state 
 61.17  employee" retroactively to the beginning of the pay period; 
 61.18     (17) persons described in section 352B.01, subdivision 2, 
 61.19  clauses (2) to (5); 
 61.20     (18) temporary employees in the classified service, 
 61.21  temporary employees in the unclassified service appointed for a 
 61.22  definite period of not more than six months and employed less 
 61.23  than six months in any one-year period and seasonal help in the 
 61.24  classified service employed by the department of revenue; 
 61.25     (19) trainee employees, except those listed in subdivision 
 61.26  2a, clause (10); 
 61.27     (20) persons whose compensation is paid on a fee basis; 
 61.28     (21) state employees who in any year have credit for 12 
 61.29  months service as teachers in the public schools of the state 
 61.30  and as teachers are members of the teachers retirement 
 61.31  association or a retirement system in St. Paul, Minneapolis, or 
 61.32  Duluth; 
 61.33     (22) employees of the adjutant general employed on an 
 61.34  unlimited intermittent or temporary basis in the classified and 
 61.35  unclassified service for the support of army and air national 
 61.36  guard training facilities; 
 62.1      (23) chaplains and nuns who are excluded from coverage 
 62.2   under the federal Old Age, Survivors, Disability, and Health 
 62.3   Insurance Program for the performance of service as specified in 
 62.4   United States Code, title 42, section 410(a)(8)(A), as amended, 
 62.5   if no irrevocable election of coverage has been made under 
 62.6   section 3121(r) of the Internal Revenue Code of 1986, as amended 
 62.7   through December 31, 1992; 
 62.8      (24) examination monitors employed by departments, 
 62.9   agencies, commissions, and boards to conduct examinations 
 62.10  required by law; 
 62.11     (25) members of appeal tribunals, exclusive of the chair, 
 62.12  to which reference is made in section 268.10, subdivision 4; 
 62.13     (26) persons appointed to serve as members of fact-finding 
 62.14  commissions or adjustment panels, arbitrators, or labor referees 
 62.15  under chapter 179; 
 62.16     (27) temporary employees employed for limited periods under 
 62.17  any state or federal program for training or rehabilitation 
 62.18  including persons employed for limited periods from areas of 
 62.19  economic distress except skilled and supervisory personnel and 
 62.20  persons having civil service status covered by the system; 
 62.21     (28) full-time students employed by the Minnesota 
 62.22  historical society intermittently during part of the year and 
 62.23  full-time during the summer months; 
 62.24     (29) temporary employees, appointed for not more than six 
 62.25  months, of the metropolitan council and of any of its statutory 
 62.26  boards, if the board members are appointed by the metropolitan 
 62.27  council; 
 62.28     (30) persons employed in positions designated by the 
 62.29  department of employee relations as student workers; 
 62.30     (31) members of trades employed by the successor to the 
 62.31  metropolitan waste control commission with trade union pension 
 62.32  plan coverage under a collective bargaining agreement first 
 62.33  employed after June 1, 1977; 
 62.34     (32) persons employed in subsidized on-the-job training, 
 62.35  work experience, or public service employment as enrollees under 
 62.36  the federal Comprehensive Employment and Training Act after 
 63.1   March 30, 1978, unless the person has as of the later of March 
 63.2   30, 1978, or the date of employment sufficient service credit in 
 63.3   the retirement system to meet the minimum vesting requirements 
 63.4   for a deferred annuity, or the employer agrees in writing on 
 63.5   forms prescribed by the director to make the required employer 
 63.6   contributions, including any employer additional contributions, 
 63.7   on account of that person from revenue sources other than funds 
 63.8   provided under the federal Comprehensive Employment and Training 
 63.9   Act, or the person agrees in writing on forms prescribed by the 
 63.10  director to make the required employer contribution in addition 
 63.11  to the required employee contribution; 
 63.12     (33) off-duty peace officers while employed by the 
 63.13  ~~metropolitan council~~ department of transportation; 
 63.14     (34) persons who are employed as full-time police officers 
 63.15  by the ~~metropolitan council~~ department of transportation and as 
 63.16  police officers are members of the public employees police and 
 63.17  fire fund; 
 63.18     (35) persons who are employed as full-time firefighters by 
 63.19  the department of military affairs and as firefighters are 
 63.20  members of the public employees police and fire fund; 
 63.21     (36) foreign citizens with a work permit of less than three 
 63.22  years, or an H-1b/JV visa valid for less than three years of 
 63.23  employment, unless notice of extension is supplied which allows 
 63.24  them to work for three or more years as of the date the 
 63.25  extension is granted, in which case they are eligible for 
 63.26  coverage from the date extended; and 
 63.27     (37) persons who are employed by the higher education board 
 63.28  and who elect to remain members of the public employees 
 63.29  retirement association or the Minneapolis employees retirement 
 63.30  fund, whichever applies, under section 136C.75. 
 63.31     Sec. 20.  Minnesota Statutes 1994, section 352D.02, 
 63.32  subdivision 1, is amended to read: 
 63.33     Subdivision 1.  [COVERAGE.] (a) Employees enumerated in 
 63.34  paragraph (b), if they are in the unclassified service of the 
 63.35  state or metropolitan council and are eligible for coverage 
 63.36  under the general state employees retirement plan under chapter 
 64.1   352, are participants in the unclassified program under this 
 64.2   chapter unless the employee gives notice to the executive 
 64.3   director of the Minnesota state retirement system within one 
 64.4   year following the commencement of employment in the 
 64.5   unclassified service that the employee desires coverage under 
 64.6   the general state employees retirement plan.  For the purposes 
 64.7   of this chapter, an employee who does not file notice with the 
 64.8   executive director is deemed to have exercised the option to 
 64.9   participate in the unclassified plan. 
 64.10     (b) Enumerated employees are: 
 64.11     (1) an employee in the office of the governor, lieutenant 
 64.12  governor, secretary of state, state auditor, state treasurer, 
 64.13  attorney general, or an employee of the state board of 
 64.14  investment; 
 64.15     (2) the head of a department, division, or agency created 
 64.16  by statute in the unclassified service, an acting department 
 64.17  head subsequently appointed to the position, or an employee 
 64.18  enumerated in section 15A.081, subdivision 1 or 15A.083, 
 64.19  subdivision 4; 
 64.20     (3) a permanent, full-time unclassified employee of the 
 64.21  legislature or a commission or agency of the legislature or a 
 64.22  temporary legislative employee having shares in the supplemental 
 64.23  retirement fund as a result of former employment covered by this 
 64.24  chapter, whether or not eligible for coverage under the 
 64.25  Minnesota state retirement system; 
 64.26     (4) a person other than an employee of the state board of 
 64.27  technical colleges who is employed in a position established 
 64.28  under section 43A.08, subdivision 1, clause (3), or subdivision 
 64.29  1a, or in a position authorized under a statute creating or 
 64.30  establishing a department or agency of the state, which is at 
 64.31  the deputy or assistant head of department or agency or director 
 64.32  level; 
 64.33     (5) the regional administrator, or executive director of 
 64.34  the metropolitan council, general counsel, division directors, 
 64.35  operations ~~managers~~ manager, and other positions as designated 
 64.36  by the council, all of which may not exceed ~~27~~ 21 positions at 
 65.1   the council; provided that upon initial designation of all 
 65.2   positions provided for in this clause, no further designations 
 65.3   or redesignations may be made without approval of the board of 
 65.4   directors of the Minnesota state retirement system; 
 65.5      (6) the executive director, associate executive director, 
 65.6   and not to exceed nine positions of the higher education 
 65.7   coordinating board in the unclassified service, as designated by 
 65.8   the higher education coordinating board before January 1, 1992, 
 65.9   or subsequently redesignated with the approval of the board of 
 65.10  directors of the Minnesota state retirement system, unless the 
 65.11  person has elected coverage by the individual retirement account 
 65.12  plan under chapter 354B; 
 65.13     (7) the clerk of the appellate courts appointed under 
 65.14  article VI, section 2, of the Constitution of the state of 
 65.15  Minnesota; 
 65.16     (8) the chief executive officers of correctional facilities 
 65.17  operated by the department of corrections and of hospitals and 
 65.18  nursing homes operated by the department of human services; 
 65.19     (9) an employee whose principal employment is at the state 
 65.20  ceremonial house; 
 65.21     (10) an employee of the Minnesota educational computing 
 65.22  corporation; 
 65.23     (11) an employee of the world trade center board; 
 65.24     (12) an employee of the state lottery board who is covered 
 65.25  by the managerial plan established under section 43A.18, 
 65.26  subdivision 3; 
 65.27     (13) an employee of the state board of technical colleges 
 65.28  employed in a position established under section 43A.08, 
 65.29  subdivision 1, clause (3), or 1a, unless the person has elected 
 65.30  coverage by the individual retirement account plan under chapter 
 65.31  354B; and 
 65.32     (14) an employee of the higher education board in a 
 65.33  position established under section 136E.04, subdivision 2, 
 65.34  unless the person has elected coverage by the individual 
 65.35  retirement account plan under chapter 354B.  
 65.36     Sec. 21.  Minnesota Statutes 1994, section 353.64, 
 66.1   subdivision 7a, is amended to read: 
 66.2      Subd. 7a.  [PENSION COVERAGE FOR CERTAIN METROPOLITAN 
 66.3   TRANSIT POLICE OFFICERS.] A person who is employed as a 
 66.4   full-time police officer on or after the first day of the first 
 66.5   payroll period after July 1, 1993, by the metropolitan 
 66.6   council or its successor and who is not eligible for coverage 
 66.7   under the agreement with the Secretary of the federal Department 
 66.8   of Health and Human Services making the provisions of the 
 66.9   federal Old Age, Survivors, and Disability Insurance Act because 
 66.10  the person's position is excluded from application under United 
 66.11  States Code, sections 418(d)(5)(A) and 418(d)(8)(D), and under 
 66.12  section 355.07, is a member of the public employees police and 
 66.13  fire fund and is considered to be a police officer within the 
 66.14  meaning of this section.  The metropolitan council and, after 
 66.15  July 31, 1995, the department of transportation shall deduct the 
 66.16  employee contribution from the salary of each full-time police 
 66.17  officer as required by section 353.65, subdivision 2, shall make 
 66.18  the employer contribution for each full-time police officer as 
 66.19  required by section 353.65, subdivision 3, and shall meet the 
 66.20  employer recording and reporting requirements in section 353.65, 
 66.21  subdivision 4. 
 66.22     Sec. 22.  Minnesota Statutes 1994, section 473.553, 
 66.23  subdivision 9, is amended to read: 
 66.24     Subd. 9.  [PERSONNEL CODE; MERIT SYSTEM.] (a) The council 
 66.25  shall by resolution adopt guidelines for a personnel code 
 66.26  relating to the employees of the commission, except that nothing 
 66.27  in Laws 1974, chapter 422, shall impair the rights of the 
 66.28  commission or employee under former sections 473.405 and 473.415.
 66.29  After adoption of the guidelines, the commission shall by 
 66.30  resolution adopt a personnel code in general conformance 
 66.31  therewith.  The code shall include a job classification plan, 
 66.32  procedures for employment and promotion of personnel based on 
 66.33  merit, procedures for the demotion, suspension, or discharge of 
 66.34  employees, procedures for hearing grievances, procedures for 
 66.35  salary administration, and such other provisions as the council 
 66.36  deems appropriate.  In addition, the code shall provide for the 
 67.1   development by the commission of affirmative action plans, as 
 67.2   provided in section 473.143.  The executive director of the 
 67.3   commission shall administer the code, and the commission shall 
 67.4   not take any action inconsistent with the personnel code. 
 67.5      (b) When a commission employee has been demoted, suspended, 
 67.6   or dismissed by the executive director, the employee may, within 
 67.7   30 days after such action becomes effective, file with the 
 67.8   commission a written request for a hearing showing the position 
 67.9   from which the employee was dismissed, the date of dismissal, 
 67.10  and the reason for requesting the hearing, full name and present 
 67.11  mailing address.  Upon receipt of a request for a hearing the 
 67.12  commission shall appoint three of its members to act as an 
 67.13  appeal committee and preside at a hearing on the action of the 
 67.14  executive director.  The hearing shall be held within 30 days 
 67.15  after the request is received by the commission, upon written 
 67.16  notice mailed or delivered to the employee at the employee's 
 67.17  present mailing address, not less than seven days before the 
 67.18  hearing.  The appeal committee shall approve or disapprove the 
 67.19  action of the executive director, and in the case of approval 
 67.20  the action of the executive director shall be final.  In the 
 67.21  case of disapproval the appeal committee may reinstate the 
 67.22  employee under such conditions as it deems proper, and may order 
 67.23  the payment to the employee of compensation lost as a result of 
 67.24  the demotion, suspension or dismissal.