1.1                          A bill for an act 
  1.2             relating to transportation; modifying provisions 
  1.3             relating to motor carriers of passengers; making 
  1.4             conforming amendments; appropriating money; amending 
  1.5             Minnesota Statutes 1998, sections 168.011, subdivision 
  1.6             35; 169.122, subdivision 5; 174A.02, subdivision 4; 
  1.7             174A.06; 221.011, subdivisions 15, 37, 38, and by 
  1.8             adding subdivisions; 221.021; 221.022; 221.025; 
  1.9             221.026, subdivision 2; 221.0251; 221.031, 
  1.10            subdivisions 1, 2, and 6; 221.036, subdivisions 1 and 
  1.11            3; 221.091; 221.122, subdivision 1; 221.124; 221.131, 
  1.12            subdivision 2; 221.141, subdivision 1; 221.172, 
  1.13            subdivision 10; 221.185, subdivisions 1, 2, 3, 4, 9, 
  1.14            and by adding a subdivision; 221.221, subdivision 3; 
  1.15            221.291, subdivision 4; 221,55; 368.01, subdivision 
  1.16            12; and 412.221, subdivision 20; proposing coding for 
  1.17            new law in Minnesota Statutes, chapter 221; repealing 
  1.18            Minnesota Statutes 1998, sections 168.011, subdivision 
  1.19            36; 168.1281; 221.011, subdivisions 7, 9, 20, 21, 32, 
  1.20            and 34; 221.041; 221.051; 221.061; 221.071; 221.081; 
  1.21            221.121, subdivisions 6b and 6h; 221.172, subdivision 
  1.22            9; 221.281; and 221.85. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24                             ARTICLE 1 
  1.25                           MOTOR CARRIERS 
  1.26     Section 1.  Minnesota Statutes 1998, section 168.011, 
  1.27  subdivision 35, is amended to read: 
  1.28     Subd. 35.  [LIMOUSINE.] ~~For purposes of motor vehicle~~ 
  1.29  ~~registration only,~~ "Limousine" means ~~an unmarked~~ a luxury 
  1.30  passenger automobile that is not a van or station wagon and has 
  1.31  a seating capacity of not more than 12 persons, excluding the 
  1.32  driver.  
  1.33     Sec. 2.  Minnesota Statutes 1998, section 221.011, 
  1.34  subdivision 15, is amended to read: 
  2.1      Subd. 15.  [MOTOR CARRIER.] "Motor carrier" means a ~~carrier~~ 
  2.2   ~~operating for hire under the authority of this chapter and~~ 
  2.3   ~~subject to the rules and orders of the commissioner or the board~~ 
  2.4   person engaged in the for-hire transportation of property or 
  2.5   passengers.  "Motor carrier" does not include a person providing 
  2.6   transportation described in section 221.025, a building mover 
  2.7   subject to section 221.81, or a person providing limousine 
  2.8   service as defined in section 221.84. 
  2.9      Sec. 3.  Minnesota Statutes 1998, section 221.011, is 
  2.10  amended by adding a subdivision to read: 
  2.11     Subd. 48.  [MOTOR CARRIER OF PASSENGERS.] "Motor carrier of 
  2.12  passengers" means a person engaged in the for-hire 
  2.13  transportation of passengers in vehicles designed to transport 
  2.14  eight or more persons, including the driver. 
  2.15     Sec. 4.  Minnesota Statutes 1998, section 221.011, is 
  2.16  amended by adding a subdivision to read: 
  2.17     Subd. 49.  [SMALL VEHICLE PASSENGER SERVICE.] "Small 
  2.18  vehicle passenger service" means a service provided by a person 
  2.19  engaged in the for-hire transportation of passengers in a 
  2.20  vehicle designed to transport seven or fewer persons, including 
  2.21  the driver. 
  2.22     Sec. 5.  Minnesota Statutes 1998, section 221.021, is 
  2.23  amended to read: 
  2.24     221.021 [~~OPERATION~~ REGISTRATION CERTIFICATE OR PERMIT 
  2.25  REQUIRED.] 
  2.26     Subdivision 1.  [REQUIREMENT.] No person may operate as a 
  2.27  motor carrier or advertise or otherwise hold out as a motor 
  2.28  carrier without a certificate of registration or permit in 
  2.29  effect.  A certificate or permit may be suspended or revoked 
  2.30  upon conviction of violating a provision of sections 221.011 to 
  2.31  221.296 or an order or rule of the commissioner ~~or board~~ 
  2.32  governing the operation of motor carriers, and upon a finding by 
  2.33  the court that the violation was willful.  The ~~board~~ 
  2.34  commissioner may, for good cause after a hearing, suspend or 
  2.35  revoke a certificate or permit for a violation of a provision of 
  2.36  sections 221.011 to 221.296 or an order issued or rule adopted 
  3.1   by the commissioner or board under this chapter.  
  3.2      Subd. 2.  [SANCTIONS.] The commissioner may suspend, 
  3.3   revoke, or deny renewal of a certificate of registration for (1) 
  3.4   serious or repeated violations of this chapter, or (2) a pattern 
  3.5   of repeated violations of local ordinances governing traffic and 
  3.6   parking.  
  3.7      Subd. 3.  [HEARING.] A motor carrier affected by an action 
  3.8   of the commissioner under subdivision 2 may, within 20 days of 
  3.9   receipt of a notice of the commissioner's action, request an 
  3.10  administrative hearing by following the procedures in section 
  3.11  221.036, subdivision 7. 
  3.12     Sec. 6.  Minnesota Statutes 1998, section 221.022, is 
  3.13  amended to read: 
  3.14     221.022 [EXCEPTION.] 
  3.15     The powers granted to the ~~board~~ commissioner under sections 
  3.16  221.011 to 221.296 do not include the power to regulate any 
  3.17  service or vehicles operated by the metropolitan council or 
  3.18  to ~~regulate~~ register passenger transportation service provided 
  3.19  under contract to the department or the metropolitan council.  A 
  3.20  provider of passenger transportation service under contract to 
  3.21  the department or the metropolitan council may not also provide 
  3.22  ~~charter~~ service as a motor carrier of passengers without first 
  3.23  having ~~obtained a permit to operate as a charter~~ 
  3.24  ~~carrier~~ registered under section 221.0252. 
  3.25     Sec. 7.  Minnesota Statutes 1998, section 221.025, is 
  3.26  amended to read: 
  3.27     221.025 [EXEMPTIONS.] 
  3.28     The provisions of this chapter requiring a certificate or 
  3.29  permit to operate as a motor carrier do not apply to the 
  3.30  intrastate transportation described below:  
  3.31     (a) the transportation of students to or from school or 
  3.32  school activities in a school bus inspected and certified under 
  3.33  section 169.451 and the transportation of children or parents to 
  3.34  or from a Head Start facility or Head Start activity in a Head 
  3.35  Start bus inspected and certified under section 169.451; 
  3.36     (b) the transportation of solid waste, as defined in 
  4.1   section 116.06, subdivision 22, including recyclable materials 
  4.2   and waste tires, except that the term "hazardous waste" has the 
  4.3   meaning given it in section 221.011, subdivision 31; 
  4.4      (c) a commuter van as defined in section 221.011, 
  4.5   subdivision 27; 
  4.6      (d) authorized emergency vehicles as defined in section 
  4.7   169.01, subdivision 5, including ambulances; and tow trucks 
  4.8   equipped with proper and legal warning devices when picking up 
  4.9   and transporting (1) disabled or wrecked motor vehicles or (2) 
  4.10  vehicles towed or transported under a towing order issued by a 
  4.11  public employee authorized to issue a towing order; 
  4.12     (e) the transportation of grain samples under conditions 
  4.13  prescribed by the board; 
  4.14     (f) the delivery of agricultural lime; 
  4.15     (g) the transportation of dirt and sod within an area 
  4.16  having a 50-mile radius from the home post office of the person 
  4.17  performing the transportation; 
  4.18     (h) the transportation of sand, gravel, bituminous asphalt 
  4.19  mix, concrete ready mix, concrete blocks or tile and the mortar 
  4.20  mix to be used with the concrete blocks or tile, or crushed rock 
  4.21  to or from the point of loading or a place of gathering within 
  4.22  an area having a 50-mile radius from that person's home post 
  4.23  office or a 50-mile radius from the site of construction or 
  4.24  maintenance of public roads and streets; 
  4.25     (i) the transportation of pulpwood, cordwood, mining 
  4.26  timber, poles, posts, decorator evergreens, wood chips, sawdust, 
  4.27  shavings, and bark from the place where the products are 
  4.28  produced to the point where they are to be used or shipped; 
  4.29     (j) the transportation of fresh vegetables from farms to 
  4.30  canneries or viner stations, from viner stations to canneries, 
  4.31  or from canneries to canneries during the harvesting, canning, 
  4.32  or packing season, or transporting sugar beets, wild rice, or 
  4.33  rutabagas from the field of production to the first place of 
  4.34  delivery or unloading, including a processing plant, warehouse, 
  4.35  or railroad siding; 
  4.36     (k) the transportation of property or freight, other than 
  5.1   household goods and petroleum products in bulk, entirely within 
  5.2   the corporate limits of a city or between contiguous cities 
  5.3   except as provided in section 221.296; 
  5.4      (l) the transportation of unprocessed dairy products in 
  5.5   bulk within an area having a 100-mile radius from the home post 
  5.6   office of the person providing the transportation; 
  5.7      (m) the transportation of agricultural, horticultural, 
  5.8   dairy, livestock, or other farm products within an area having a 
  5.9   100-mile radius from the person's home post office and the 
  5.10  carrier may transport other commodities within the 100-mile 
  5.11  radius if the destination of each haul is a farm; 
  5.12     (n) ~~passenger transportation service that is not charter~~ 
  5.13  ~~service and that is under contract to and with operating~~ 
  5.14  ~~assistance from the department or the metropolitan council;~~ 
  5.15     ~~(o)~~ the transportation of newspapers, as defined in section 
  5.16  331A.01, subdivision 5, telephone books, handbills, circulars, 
  5.17  or pamphlets in a vehicle with a gross vehicle weight of 10,000 
  5.18  pounds or less; and 
  5.19     ~~(p)~~ (o) transportation of potatoes from the field of 
  5.20  production, or a storage site owned or otherwise controlled by 
  5.21  the producer, to the first place of processing. 
  5.22     The exemptions provided in this section apply to a person 
  5.23  only while the person is exclusively engaged in exempt 
  5.24  transportation. 
  5.25     Sec. 8.  Minnesota Statutes 1998, section 221.0251, is 
  5.26  amended to read: 
  5.27     221.0251 [MOTOR CARRIER OF PROPERTY; REGISTRATION.] 
  5.28     Subdivision 1.  [REGISTRATION STATEMENT.] A person who 
  5.29  wishes to operate as a motor carrier of property shall file a 
  5.30  complete and accurate registration statement with the 
  5.31  commissioner.  A registration statement must be on a form 
  5.32  provided by the commissioner and include: 
  5.33     (1) the registrant's name, including an assumed or 
  5.34  fictitious name used by the registrant in doing business; 
  5.35     (2) the registrant's mailing address and business telephone 
  5.36  number; 
  6.1      (3) the registrant's federal Employer Identification Number 
  6.2   and Minnesota Business Identification Number and the 
  6.3   identification numbers, if any, assigned to the registrant by 
  6.4   the United States Department of Transportation, Interstate 
  6.5   Commerce Commission, or Environmental Protection Agency; 
  6.6      (4) the name, title, and telephone number of the individual 
  6.7   who is principally responsible for the operation of the 
  6.8   registrant's transportation business; 
  6.9      (5) the principal location from which the registrant 
  6.10  conducts its transportation business and where the records 
  6.11  required by this chapter will be kept; 
  6.12     (6) if different from clause (5), the location in Minnesota 
  6.13  where the records required by this chapter will be available for 
  6.14  inspection and copying by the commissioner; 
  6.15     (7) whether the registrant transports hazardous materials 
  6.16  or hazardous waste; 
  6.17     (8) whether the registrant's business is a corporation, 
  6.18  partnership, limited liability partnership, limited liability 
  6.19  company, or sole proprietorship; and 
  6.20     (9) if the registrant is a foreign corporation authorized 
  6.21  to transact business in Minnesota, the state of incorporation 
  6.22  and the name and address of its registered agent. 
  6.23     Subd. 2.  [SIGNATURE REQUIRED.] A registration statement 
  6.24  may be signed only by a corporate officer, general partner, 
  6.25  limited liability company board member, or sole proprietor.  A 
  6.26  signature must be notarized. 
  6.27     Subd. 3.  [CERTIFICATE OF REGISTRATION; ISSUANCE; 
  6.28  LOCATION.] (a) The commissioner shall issue a certificate of 
  6.29  registration to a registrant who has filed a registration 
  6.30  statement that complies with subdivisions 1 and 2 and paid the 
  6.31  required fee, has a satisfactory safety rating and, if 
  6.32  applicable, has complied with the financial responsibility 
  6.33  requirements in section 221.141.  The commissioner may not issue 
  6.34  a certificate of registration to a registrant who has an 
  6.35  unsatisfactory safety rating. 
  6.36     (b) A certificate of registration must be numbered and bear 
  7.1   an effective date. 
  7.2      (c) A certificate of registration must be kept at the 
  7.3   registrant's principal place of business. 
  7.4      Subd. 4.  [DURATION.] A certificate of registration is not 
  7.5   assignable or transferable and is valid until it is suspended, 
  7.6   revoked, or canceled. 
  7.7      Subd. 5.  [OBLIGATION TO KEEP INFORMATION CURRENT.] A 
  7.8   registrant shall notify the commissioner in writing of any 
  7.9   change in the information described in subdivision 1. 
  7.10     Sec. 9.  [221.0252] [PASSENGER CARRIERS; REGISTRATION; 
  7.11  EXEMPTIONS.] 
  7.12     Subdivision 1.  [FILING REQUIRED.] A person who wishes to 
  7.13  operate as a motor carrier of passengers must file with the 
  7.14  commissioner a complete and accurate federal motor carrier 
  7.15  identification report form MCS-150.  In addition, a person must 
  7.16  file a vehicle registration form prescribed by the commissioner 
  7.17  describing the make, model, number of passengers the vehicle is 
  7.18  designed to transport as determined by the vehicle's 
  7.19  manufacturer, and license plate and vehicle identification 
  7.20  number of each vehicle that the registrant will be using in 
  7.21  those operations for which registration is required. 
  7.22     Subd. 2.  [SIGNATURE REQUIRED.] A form required under this 
  7.23  section may be signed only by a corporate officer, general 
  7.24  partner, limited liability company board member, or sole 
  7.25  proprietor.  
  7.26     Subd. 3.  [AUDIT; INSPECTION.] Within 90 days of issuing a 
  7.27  new certificate of registration to a carrier under this section, 
  7.28  and before issuing an annual renewal of a certificate of 
  7.29  registration, the commissioner shall: 
  7.30     (1) conduct an audit of the carrier's records; 
  7.31     (2) inspect the vehicles the carrier uses in its motor 
  7.32  carrier operation to determine if they comply with the federal 
  7.33  regulations incorporated in section 221.0314 or accept for 
  7.34  filing proof that a complete vehicle inspection was conducted 
  7.35  within the previous 30 days by a commercial vehicle inspector of 
  7.36  the department of public safety; 
  8.1      (3) verify that the carrier has a designated office in 
  8.2   Minnesota where the books and files necessary to conduct 
  8.3   business and the records required by this chapter are kept and 
  8.4   shall be available for inspection by the commissioner; 
  8.5      (4) audit the carrier's drivers' criminal background and 
  8.6   safety records; and 
  8.7      (5) verify compliance with the insurance requirements of 
  8.8   section 221.141. 
  8.9      Subd. 4.  [CERTIFICATE OF REGISTRATION; REQUIREMENTS; 
  8.10  ISSUANCE; DURATION.] (a) The commissioner shall issue a 
  8.11  certificate of registration to a carrier who (1) does not have 
  8.12  an unsatisfactory safety rating, (2) has complied with 
  8.13  subdivisions 1 and 2, (3) has paid the required fee, (4) in the 
  8.14  case of an annual renewal, has been audited and inspected under 
  8.15  subdivision 3, and (5) has complied with the financial 
  8.16  responsibility requirements in section 221.141.  
  8.17     (b) A photocopy of the carrier's certificate of 
  8.18  registration must be carried in each vehicle operated under the 
  8.19  registration and must be made available to the department and 
  8.20  other law enforcement officials upon request. 
  8.21     (c) Registration under this section is not assignable or 
  8.22  transferable and is valid until it expires or is suspended, 
  8.23  revoked, or canceled, whichever occurs first.  A registration is 
  8.24  valid for one year from the date issued. 
  8.25     Subd. 5.  [SUSPENSION FOR UNSATISFACTORY SAFETY 
  8.26  RATING.] Following the procedures in section 221.185, the 
  8.27  commissioner shall immediately suspend the registration of a 
  8.28  carrier who receives an unsatisfactory safety rating.  The 
  8.29  commissioner shall conduct one follow-up compliance audit to 
  8.30  determine if the carrier's safety rating should be changed or 
  8.31  the suspension rescinded within 30 days of receiving a written 
  8.32  request from the carrier.  Additional compliance reviews may be 
  8.33  conducted at the commissioner's discretion. 
  8.34     Subd. 6.  [ANNUAL RENEWAL.] A carrier registered under this 
  8.35  section must renew its registration each year on a form 
  8.36  prescribed by the commissioner.  The commissioner shall develop 
  9.1   and implement an expedited renewal process to minimize the 
  9.2   burden on motor carriers. 
  9.3      Subd. 7.  [FEES.] The fee for initial registration and each 
  9.4   subsequent renewal under this section is $500.  All fees under 
  9.5   this subdivision must be deposited in the state treasury and 
  9.6   credited to the trunk highway fund. 
  9.7      Subd. 8.  [EXEMPTIONS FROM REGULATION.] Notwithstanding any 
  9.8   other law, motor carriers of passengers are exempt from sections 
  9.9   221.121; 221.122; 221.123; 221.132; 221.151; 221.161; and 
  9.10  221.171. 
  9.11     Sec. 10.  Minnesota Statutes 1998, section 221.031, 
  9.12  subdivision 1, is amended to read: 
  9.13     Subdivision 1.  [POWERS, DUTIES, REPORTS, LIMITATIONS.] (a) 
  9.14  This subdivision applies to motor carriers engaged in intrastate 
  9.15  commerce. 
  9.16     (b) The commissioner shall prescribe rules for the 
  9.17  operation of motor carriers, including their facilities; 
  9.18  accounts; leasing of vehicles and drivers; service; safe 
  9.19  operation of vehicles; equipment, parts, and accessories; hours 
  9.20  of service of drivers; driver qualifications; accident 
  9.21  reporting; identification of vehicles; installation of safety 
  9.22  devices; inspection, repair, and maintenance; and proper 
  9.23  automatic speed regulators if, in the opinion of the 
  9.24  commissioner, there is a need for the rules.  
  9.25     (c) The commissioner shall direct the repair and 
  9.26  reconstruction or replacement of an inadequate or unsafe motor 
  9.27  carrier vehicle or facility.  The commissioner may require the 
  9.28  construction and maintenance or furnishing of suitable and 
  9.29  proper freight terminals, passenger depots, waiting rooms, and 
  9.30  accommodations or shelters in a city in this state or at a point 
  9.31  on the highway traversed which the commissioner, after 
  9.32  investigation by the department, may deem just and proper for 
  9.33  the protection of passengers or property.  
  9.34     (d) The commissioner shall require holders of household 
  9.35  goods mover permits~~, charter carrier permits, and regular route~~ 
  9.36  ~~passenger carrier certificates~~ to file annual and other reports 
 10.1   including annual accounts of motor carriers, schedules of rates 
 10.2   and charges, or other data by motor carriers, regulate motor 
 10.3   carriers in matters affecting the relationship between them and 
 10.4   the traveling and shipping public, and prescribe other rules as 
 10.5   may be necessary to carry out the provisions of this chapter.  
 10.6      (e) A motor carrier subject to paragraph (d) but having 
 10.7   gross revenues from for-hire transportation in a calendar year 
 10.8   of less than $200,000 may, at the discretion of the 
 10.9   commissioner, be exempted from the filing of an annual report, 
 10.10  if instead the motor carrier files an abbreviated annual report, 
 10.11  in a form as may be prescribed by the commissioner, attesting 
 10.12  that the motor carrier's gross revenues did not exceed $200,000 
 10.13  in the previous calendar year.  Motor carrier gross revenues 
 10.14  from for-hire transportation, for the purposes of this 
 10.15  subdivision only, do not include gross revenues received from 
 10.16  the operation of school buses as defined in section 169.01, 
 10.17  subdivision 6. 
 10.18     (f) The commissioner shall enforce sections 169.781 to 
 10.19  169.783. 
 10.20     ~~(g) The commissioner shall make no rules relating to the~~ 
 10.21  ~~granting, limiting, or modifying of permits or certificates of~~ 
 10.22  ~~convenience and necessity, which are powers granted to the board.~~
 10.23     ~~(h) The board may extend the termini of a route or alter or~~ 
 10.24  ~~change the route of a regular route common carrier upon petition~~ 
 10.25  ~~and after finding that public convenience and necessity require~~ 
 10.26  ~~an extension, alteration, or change.~~ 
 10.27     Sec. 11.  Minnesota Statutes 1998, section 221.031, 
 10.28  subdivision 2, is amended to read: 
 10.29     Subd. 2.  [EXEMPTIONS FOR PRIVATE CARRIERS.] This 
 10.30  subdivision applies to private carriers engaged in intrastate 
 10.31  commerce. 
 10.32     (a) Private carriers operating vehicles with a gross 
 10.33  vehicle weight of more than 10,000 pounds shall comply 
 10.34  with ~~rules adopted under~~ those federal regulations incorporated 
 10.35  by reference in: 
 10.36     (1) section 221.0314, subdivisions 2 to 5, for driver 
 11.1   qualifications; 
 11.2      (2) section 221.0314, subdivision 9, for hours of service 
 11.3   of drivers; 
 11.4      (3) section 221.0314, subdivision 6, for driving of motor 
 11.5   vehicles; 
 11.6      (4) section 221.0314, subdivision 7, for parts and 
 11.7   accessories necessary for safe operation; and 
 11.8      (5) section 221.0314, subdivision 10, for inspection, 
 11.9   repair, and maintenance~~; and~~. 
 11.10     ~~(6) this section for leasing of vehicles or vehicles and~~ 
 11.11  ~~drivers.~~ 
 11.12     ~~Private carriers not subject to the rules for driver~~ 
 11.13  ~~qualifications before August 1, 1992, must comply with those~~ 
 11.14  ~~rules on and after August 1, 1994.~~ 
 11.15     (b) The rules for hours of service of drivers do not apply 
 11.16  to private carriers who are (1) public utilities as defined in 
 11.17  section 216B.02, subdivision 4; (2) cooperative electric 
 11.18  associations organized under chapter 308A; (3) telephone 
 11.19  companies as defined in section 237.01, subdivision 2; or (4) 
 11.20  engaged in the transportation of construction materials, tools 
 11.21  and equipment from shop to job site or job site to job site, for 
 11.22  use by the private carrier in the new construction, remodeling, 
 11.23  or repair of buildings, structures or their appurtenances. 
 11.24     (c) The rules for driver qualifications and hours of 
 11.25  service of drivers do not apply to vehicles controlled by a 
 11.26  farmer and operated by a farmer or farm employee to transport 
 11.27  agricultural products, farm machinery, or supplies to or from a 
 11.28  farm if the vehicle is not used in the operations of a motor 
 11.29  carrier and not carrying hazardous materials of a type or 
 11.30  quantity that requires the vehicle to be marked or placarded in 
 11.31  accordance with section 221.033.  
 11.32     (d) The rules for driver qualifications do not apply to a 
 11.33  driver employed by a private carrier while operating a 
 11.34  lightweight vehicle. 
 11.35     Sec. 12.  Minnesota Statutes 1998, section 221.031, 
 11.36  subdivision 6, is amended to read: 
 12.1      Subd. 6.  [VEHICLE IDENTIFICATION RULE.] (a) The following 
 12.2   carriers shall display the carrier's name and address on the 
 12.3   power unit of each vehicle:  
 12.4      (1) motor carriers, regardless of the weight of the 
 12.5   vehicle, except that this requirement does not apply to a 
 12.6   limousine as defined in section 168.011, subdivision 35, that is 
 12.7   equipped with "LM" license plates; 
 12.8      (2) interstate and intrastate private carriers operating 
 12.9   vehicles with a gross vehicle weight of more than 10,000 pounds; 
 12.10  and 
 12.11     (3) vehicles providing transportation described in section 
 12.12  221.025 with a gross vehicle weight of more than 10,000 pounds 
 12.13  except those providing transportation described in section 
 12.14  221.025, clauses (a), (c), and (d).  
 12.15     Vehicles described in clauses (2) and (3) that are operated 
 12.16  by farmers or farm employees and have four or fewer axles are 
 12.17  not required to comply with the vehicle identification rule of 
 12.18  the commissioner. 
 12.19     (b) Vehicles subject to this subdivision must show the name 
 12.20  or "doing business as" name of the carrier operating the vehicle 
 12.21  and the community and abbreviation of the state in which the 
 12.22  carrier maintains its principal office or in which the vehicle 
 12.23  is customarily based.  If the carrier operates a leased vehicle, 
 12.24  it may show its name and the name of the lessor on the vehicle, 
 12.25  if the lease relationship is clearly shown.  If the name of a 
 12.26  person other than the operating carrier appears on the vehicle, 
 12.27  the words "operated by" must immediately precede the name of the 
 12.28  carrier.  
 12.29     (c) The name and address must be in letters that contrast 
 12.30  sharply in color with the background, be readily legible during 
 12.31  daylight hours from a distance of 50 feet while the vehicle is 
 12.32  stationary, and be maintained in a manner that retains the 
 12.33  legibility of the markings.  The name and address may be shown 
 12.34  by use of a removable device if that device meets the 
 12.35  identification and legibility requirements of this subdivision. 
 12.36     Sec. 13.  Minnesota Statutes 1998, section 221.091, is 
 13.1   amended to read: 
 13.2      221.091 [LIMITATIONS; RELATIONSHIP TO LOCAL REGULATION.] 
 13.3      Subdivision 1.  [LOCAL AUTHORITY OVER STREETS AND 
 13.4   HIGHWAYS.] ~~No provision in~~ Sections 221.011 to 221.291 ~~and~~ 
 13.5   ~~221.84 to 221.85 shall~~ do not authorize the use by ~~any~~ a carrier 
 13.6   of ~~any~~ a public highway in ~~any~~ a city of the first class in 
 13.7   violation of ~~any~~ a charter provision or ordinance of ~~such~~ the 
 13.8   city in effect January 1, 1925, unless ~~and except as such~~ the 
 13.9   charter ~~provisions~~ provision or ordinance ~~may be~~ is repealed 
 13.10  after that date~~; nor shall~~.  In addition, sections 221.011 to 
 13.11  221.291 ~~and 221.84 to 221.85 be construed as in any manner~~ 
 13.12  ~~taking from or curtailing~~ do not (1) curtail the right of ~~any~~ a 
 13.13  city to reasonably regulate or control the routing, parking, 
 13.14  speed or ~~the~~ safety of operation of a motor vehicle operated by 
 13.15  ~~any~~ a carrier under the terms of those sections, ~~or~~ (2) curtail 
 13.16  the general police power of ~~any such~~ the city over its highways~~;~~ 
 13.17  ~~nor shall sections 221.011 to 221.291 and 221.84 to 221.85 be~~ 
 13.18  ~~construed as abrogating~~, or (3) abrogate any provision of 
 13.19  the city's charter ~~of any such city~~ requiring certain conditions 
 13.20  to be complied with before ~~such~~ a carrier can use the highways 
 13.21  of ~~such~~ the city and ~~such~~ these rights and powers ~~herein~~ 
 13.22  ~~stated~~ are ~~hereby~~ expressly reserved and granted to ~~such~~ the 
 13.23  city~~; but~~.  However, no ~~such~~ city shall prohibit or deny the use 
 13.24  of the public highways within its territorial boundaries by ~~any~~ 
 13.25  ~~such~~ a carrier for ~~transportation of~~ transporting passengers or 
 13.26  property received within its boundaries to destinations 
 13.27  beyond ~~such~~ the city's boundaries, or for ~~transportation~~ 
 13.28  ~~of~~ transporting passengers or property from points beyond ~~such~~ 
 13.29  the city's boundaries to destinations within the ~~same~~ the city's 
 13.30  boundaries, or for ~~transportation of~~ transporting passengers or 
 13.31  property from points beyond ~~such~~ the city's boundaries through 
 13.32  ~~such municipality~~ the city to points beyond the city's 
 13.33  boundaries ~~of such municipality, where such operation~~ when the 
 13.34  carrier is operating pursuant to a certificate of ~~convenience~~ 
 13.35  ~~and necessity~~ registration issued ~~by the commission~~ under this 
 13.36  chapter or ~~to~~ a permit issued by the commissioner under section 
 14.1   221.84 ~~or 221.85~~. 
 14.2      Subd. 2.  [LOCAL LICENSING OF SMALL VEHICLE PASSENGER 
 14.3   SERVICE.] A city that licenses and regulates small vehicle 
 14.4   passenger service must do so by ordinance.  The ordinance must, 
 14.5   at a minimum, provide for driver qualifications, insurance, 
 14.6   vehicle safety, and periodic vehicle inspections. 
 14.7      Subd. 3.  [METROPOLITAN AIRPORTS COMMISSION 
 14.8   AUTHORITY.] Notwithstanding any other law, the metropolitan 
 14.9   airports commission may regulate ground transportation to and 
 14.10  from an airport under its jurisdiction.  This authority 
 14.11  includes, but is not limited to, regulating the number and type 
 14.12  of transportation service, making concession agreements, and 
 14.13  establishing vehicle standards. 
 14.14     Sec. 14.  Minnesota Statutes 1998, section 221.124, is 
 14.15  amended to read: 
 14.16     221.124 [INITIAL MOTOR CARRIER CONTACT PROGRAM.] 
 14.17     Subdivision 1.  [INITIAL MOTOR CARRIER CONTACT.] The 
 14.18  initial motor carrier contact program consists of an initial 
 14.19  contact, for educational purposes, between a motor carrier 
 14.20  required to participate and representatives of the department of 
 14.21  transportation.  The initial contact may be through an 
 14.22  educational seminar or, at the discretion of the department, 
 14.23  through a personal ~~meeting~~ contact with a representative of the 
 14.24  department.  The initial contact must consist of a discussion of 
 14.25  the statutes, rules, and regulations that apply to motor 
 14.26  carriers.  Topics discussed must include:  ~~carrier authority;~~ 
 14.27  ~~the leasing of drivers and vehicles;~~ insurance requirements; 
 14.28  ~~tariffs; annual reports;~~ accident reporting; accident 
 14.29  countermeasures; identification of vehicles; driver 
 14.30  qualifications; maximum hours of service of drivers; the safe 
 14.31  operation of vehicles; equipment, parts, and accessories; and 
 14.32  inspection, repair, and maintenance.  The department shall 
 14.33  provide written documentation of proof of compliance with the 
 14.34  requirements of subdivision 2 and shall give a copy of the 
 14.35  document to the motor carrier. 
 14.36     Subd. 2.  [PARTICIPATION REQUIRED.] A motor carrier 
 15.1   that ~~receives a certificate or permit from~~ first registers with 
 15.2   or receives a permit from the ~~board for new authority on~~ 
 15.3   ~~or~~ commissioner after ~~September 1, 1991~~ January 1, 2000, shall 
 15.4   participate in the initial motor carrier contact program.  A 
 15.5   motor carrier required to participate in the program must have 
 15.6   in attendance at least one motor carrier official having a 
 15.7   substantial interest or control, directly or indirectly, in or 
 15.8   over the operations conducted or to be conducted under 
 15.9   the ~~certificate~~ carrier's registration or permit. 
 15.10     Subd. 3.  [TIME FOR COMPLIANCE.] A motor carrier required 
 15.11  by subdivision 2 to participate in the program must do so within 
 15.12  90 days of the service date of the order granting the 
 15.13  ~~certificate or~~ permit or within 90 days of registering, unless 
 15.14  the commissioner extends the time for compliance.  Failure to 
 15.15  comply with the requirement of subdivision 2 makes the order 
 15.16  granting the ~~certificate or~~ permit or the carrier's registration 
 15.17  void upon expiration of the time for compliance. 
 15.18     Sec. 15.  Minnesota Statutes 1998, section 221.131, 
 15.19  subdivision 2, is amended to read: 
 15.20     Subd. 2.  [ANNUAL VEHICLE REGISTRATION; FEE.] (a) This 
 15.21  subdivision applies only to holders of household goods mover 
 15.22  permits and ~~charter carrier permits~~ motor carriers of passengers.
 15.23     (b) ~~The~~ A permit holder or motor carrier of passengers 
 15.24  shall pay an annual registration fee of $40 on each vehicle, 
 15.25  including pickup and delivery vehicles, operated by the ~~holder~~ 
 15.26  carrier under authority of the permit or certificate of 
 15.27  registration during the 12-month period or fraction of the 
 15.28  12-month period.  Trailers and semitrailers used by a permit 
 15.29  holder in combination with power units may not be counted as 
 15.30  vehicles in the computation of fees under this section if the 
 15.31  permit holder pays the fees for power units. 
 15.32     (c) The commissioner shall furnish a distinguishing annual 
 15.33  identification card for each vehicle or power unit for which a 
 15.34  fee has been paid.  The identification card must at all times be 
 15.35  carried in the vehicle or power unit to which it has been 
 15.36  assigned.  An identification card may be reassigned to another 
 16.1   vehicle or power unit upon application of the ~~permit holder~~ 
 16.2   carrier and payment of a transfer fee of $10.  An identification 
 16.3   card issued under this section is valid only for the period for 
 16.4   which the permit or certificate of registration is effective. 
 16.5      (d) A fee of $10 is charged for the replacement of an 
 16.6   unexpired identification card that has been lost.  
 16.7      (e) The proceeds of the fees collected under this 
 16.8   subdivision must be deposited in the trunk highway fund. 
 16.9      Sec. 16.  Minnesota Statutes 1998, section 221.141, 
 16.10  subdivision 1, is amended to read: 
 16.11     Subdivision 1.  [FINANCIAL RESPONSIBILITY OF CARRIERS.] (a) 
 16.12  No motor carrier and no interstate carrier shall operate a 
 16.13  vehicle until it has obtained and has in effect the minimum 
 16.14  amount of financial responsibility required by this section.  
 16.15  Policies of insurance, surety bonds, other types of security, 
 16.16  and endorsements must be continuously in effect and must remain 
 16.17  in effect until canceled.  Before providing transportation, the 
 16.18  motor carrier or interstate carrier shall secure and cause to be 
 16.19  filed with the commissioner and maintain in full effect, a 
 16.20  certificate of insurance in a form required by the commissioner, 
 16.21  evidencing public liability insurance in the amount prescribed.  
 16.22  The insurance must cover injuries and damage to persons or 
 16.23  property resulting from the operation or use of motor vehicles, 
 16.24  regardless of whether each vehicle is specifically described in 
 16.25  the policy.  This insurance does not apply to injuries or death 
 16.26  to the employees of the motor carrier or to property being 
 16.27  transported by the carrier.  ~~The commissioner shall require~~ 
 16.28  ~~cargo insurance for certificated carriers, except those carrying~~ 
 16.29  ~~passengers exclusively.  The commissioner may require a permit~~ 
 16.30  ~~carrier to file cargo insurance when the commissioner deems~~ 
 16.31  ~~necessary to protect the users of the service.~~  
 16.32     (b) Notwithstanding any other provision of this chapter, 
 16.33  the insurance required of a motor carrier of passengers must be 
 16.34  at least that amount required of interstate carriers under Code 
 16.35  of Federal Regulations, title 49, section 387.33, as amended. 
 16.36     Sec. 17.  Minnesota Statutes 1998, section 221.172, 
 17.1   subdivision 10, is amended to read: 
 17.2      Subd. 10.  [RETAINED THREE YEARS.] A shipping document or 
 17.3   record described in ~~subdivisions~~ subdivision 2 ~~to 9~~ or 3, or a 
 17.4   copy of it, must be retained by the carrier for at least three 
 17.5   years from the date on the shipping document or record.  A 
 17.6   carrier may keep a shipping record described in ~~subdivisions~~ 
 17.7   subdivision 3 ~~to 9~~ by any technology that prevents the 
 17.8   alteration, modification, or erasure of the underlying data and 
 17.9   will enable production of an accurate and unaltered paper copy.  
 17.10  A carrier shall keep a shipping record in a manner that will 
 17.11  make it readily accessible and shall have a means of identifying 
 17.12  and producing a legible paper copy for inspection by the 
 17.13  commissioner upon request. 
 17.14     Sec. 18.  [221.178] [MOTOR CARRIERS OF PASSENGERS; CRIMINAL 
 17.15  BACKGROUND CHECK.] 
 17.16     Subdivision 1.  [CARRIER TO CONDUCT BACKGROUND CHECK.] A 
 17.17  motor carrier of passengers shall conduct, or cause to be 
 17.18  conducted, an initial background check of a person the carrier 
 17.19  hires or with whom the carrier contracts whose duties include 
 17.20  operating a vehicle used to transport passengers.  A subsequent 
 17.21  background check must be conducted every three years. 
 17.22     Subd. 2.  [SCOPE AND PROCEDURES OF CHECK.] Sections 
 17.23  299C.67, 299C.68, 299C.70, and 299C.71 apply to background 
 17.24  checks conducted under subdivision 1.  For purposes of this 
 17.25  section, when used in sections 299C.67, 299C.68, 299C.70, and 
 17.26  299C.71, the term "owner" refers to a motor carrier of 
 17.27  passengers and the term "manager" refers to a driver.  A motor 
 17.28  carrier of passengers may not use a driver to operate a vehicle 
 17.29  providing passenger transportation if the background check 
 17.30  response shows that the driver has been convicted of a 
 17.31  background check crime defined in section 299C.67, subdivision 
 17.32  2, paragraph (a) or (b).  
 17.33     Subd. 3.  [RECORDS.] A carrier shall keep a record, 
 17.34  identified by the employee's name, of a background check 
 17.35  conducted under this section.  A record must be made available 
 17.36  to the commissioner upon request. 
 18.1      Sec. 19.  Minnesota Statutes 1998, section 221.185, 
 18.2   subdivision 1, is amended to read: 
 18.3      Subdivision 1.  [GROUNDS FOR SUSPENSION.] Despite the 
 18.4   provisions of section 221.021, ~~authority to operate as~~ a 
 18.5   household goods mover permit or a motor carrier registration 
 18.6   issued under ~~sections 221.011 to 221.296~~ section 221.0251 or 
 18.7   221.0252 is suspended without a hearing, by order of the 
 18.8   commissioner, ~~for a period not to exceed 45 days upon the~~ 
 18.9   ~~occurrence of any of the following and upon notice of suspension~~ 
 18.10  ~~as provided in subdivision 2:~~ 
 18.11     ~~(a) the motor carrier~~ if the permit holder or carrier fails 
 18.12  to maintain and file with the commissioner, the insurance or 
 18.13  bond required by ~~sections~~ section 221.141 ~~and 221.296~~ and rules 
 18.14  ~~of the commissioner;~~ 
 18.15     ~~(b) the motor carrier fails to renew permits as required by~~ 
 18.16  ~~section 221.131;~~ 
 18.17     ~~(c)~~ adopted under that section or the ~~motor~~ carrier or 
 18.18  permit holder fails to pay annual vehicle registration fees or 
 18.19  renew permits as required by ~~sections 221.071,~~ section 221.131, 
 18.20  ~~and 221.296;~~ or 
 18.21     ~~(d) the motor carrier fails to maintain in good standing a~~ 
 18.22  ~~protective agent's or private detective's license required under~~ 
 18.23  ~~section 221.121, subdivision 6g, paragraph (b), or 221.153,~~ 
 18.24  ~~subdivision 3~~ the permit holder or carrier fails to pay an 
 18.25  administrative penalty under section 221.036. 
 18.26     Sec. 20.  Minnesota Statutes 1998, section 221.185, is 
 18.27  amended by adding a subdivision to read: 
 18.28     Subd. 2a.  [NOTICE OF SUSPENSION; EFFECTIVE DATE.] The 
 18.29  commissioner shall issue a notice of suspension if one of the 
 18.30  conditions described in subdivision 1 occurs.  The notice must 
 18.31  give the reason for suspension and must be sent to the last 
 18.32  known address of the carrier by certified mail, return receipt 
 18.33  requested.  A suspension is effective two days after a notice is 
 18.34  mailed. 
 18.35     Sec. 21.  Minnesota Statutes 1998, section 221.185, 
 18.36  subdivision 3, is amended to read: 
 19.1      Subd. 3.  [RESCIND SUSPENSION.] If the motor carrier 
 19.2   complies with the requirements of this chapter within 45 days 
 19.3   after the date of suspension and pays the required fees, 
 19.4   including a late vehicle registration fee of $5 for each vehicle 
 19.5   registered, the commissioner shall rescind the suspension unless 
 19.6   the carrier's registration has expired.  If a registered carrier 
 19.7   fails to comply within one year of the effective date of a 
 19.8   suspension, the carrier's registration is canceled.  
 19.9      Sec. 22.  Minnesota Statutes 1998, section 221.291, 
 19.10  subdivision 4, is amended to read: 
 19.11     Subd. 4.  [OPERATING WITHOUT ~~CERTIFICATE~~ REGISTRATION OR 
 19.12  PERMIT.] A person who operates a motor carrier without ~~obtaining~~ 
 19.13  ~~required certificates or permits to operate as required by this~~ 
 19.14  ~~chapter~~ first registering under section 221.0251 or 221.0252, or 
 19.15  who operates as a household goods mover without having obtained 
 19.16  the necessary permit, is guilty of a misdemeanor, and upon 
 19.17  conviction shall be fined not less than the maximum fine which 
 19.18  may be imposed for a misdemeanor for each violation.  
 19.19     Sec. 23.  Minnesota Statutes 1998, section 368.01, 
 19.20  subdivision 12, is amended to read: 
 19.21     Subd. 12.  [TAXIS, HAULERS, CAR RENTERS.] The town board 
 19.22  may by ordinance license and regulate baggage wagons, dray 
 19.23  drivers, taxicabs, and automobile rental agencies and liveries.  
 19.24  At a minimum, an ordinance to license or regulate taxicabs or 
 19.25  small vehicle passenger service must provide for driver 
 19.26  qualifications, insurance, vehicle safety, and periodic vehicle 
 19.27  inspections. 
 19.28     Sec. 24.  Minnesota Statutes 1998, section 412.221, 
 19.29  subdivision 20, is amended to read: 
 19.30     Subd. 20.  [TAXIS, HAULERS, CAR RENTERS.] The council shall 
 19.31  have power by ordinance to license and regulate baggage wagons, 
 19.32  dray drivers, taxicabs, and automobile rental agencies and 
 19.33  liveries.  At a minimum, an ordinance to license or regulate 
 19.34  taxicabs or small vehicle passenger service must provide for 
 19.35  driver qualifications, insurance, vehicle safety, and periodic 
 19.36  vehicle inspections. 
 20.1      Sec. 25.  [CONVERSION OF CERTIFICATES.] 
 20.2      A motor carrier of passengers with a valid certificate or 
 20.3   permit issued by the transportation regulation board, public 
 20.4   service commission, public utilities commission, or commissioner 
 20.5   of transportation before January 1, 2000, is deemed to have 
 20.6   registered under Minnesota Statutes, section 221.0252, and the 
 20.7   commissioner of transportation shall issue a certificate of 
 20.8   registration to the carrier.  A certificate of registration 
 20.9   issued under this section must include a date between January 1, 
 20.10  2001, and December 31, 2001, on which it expires.  Before a 
 20.11  certificate of registration expires, after giving notice to the 
 20.12  carrier, the commissioner shall follow the procedures in 
 20.13  Minnesota Statutes, section 221.0252, to renew the carrier's 
 20.14  registration.  Minnesota Statutes, section 221.124, does not 
 20.15  apply to a carrier who is issued a certificate of registration 
 20.16  under this section. 
 20.17     Sec. 26.  [APPROPRIATION.] 
 20.18     $....... for the biennium ending June 30, 2001, is 
 20.19  appropriated from the trunk highway fund to the commissioner of 
 20.20  transportation for the purposes of sections 1 to 25. 
 20.21     Sec. 27.  [REPEALER.] 
 20.22     Minnesota Statutes 1998, sections 168.011, subdivision 36; 
 20.23  168.1281; 221.011, subdivisions 7, 9, 20, 21, 32, and 34; 
 20.24  221.041; 221.051; 221.061; 221.071; 221.081; 221.121, 
 20.25  subdivisions 6b and 6h; 221.172, subdivision 9; 221.281; and 
 20.26  221.85, are repealed. 
 20.27     Sec. 28.  [EFFECTIVE DATE.] 
 20.28     Sections 1 to 25 and 27 are effective January 1, 2000.  
 20.29  Section 26 is effective July 1, 1999. 
 20.30                             ARTICLE 2 
 20.31                       CONFORMING AMENDMENTS 
 20.32     Section 1.  Minnesota Statutes 1998, section 169.122, 
 20.33  subdivision 5, is amended to read: 
 20.34     Subd. 5.  [EXCEPTION.] This section does not apply to the 
 20.35  possession or consumption of alcoholic beverages by passengers 
 20.36  in: 
 21.1      (1) a bus ~~operated under a charter as defined in section~~ 
 21.2   ~~221.011, subdivision 20~~ that is operated by a motor carrier of 
 21.3   passengers, as defined in section 221.011, subdivision 48; or 
 21.4      (2) a vehicle providing limousine service as defined in 
 21.5   section 221.84, subdivision 1. 
 21.6      Sec. 2.  Minnesota Statutes 1998, section 174A.02, 
 21.7   subdivision 4, is amended to read: 
 21.8      Subd. 4.  [HEARINGS; NOTICE.] With respect to those matters 
 21.9   within its jurisdiction the board shall receive, hear and 
 21.10  determine all petitions filed with it in accordance with the 
 21.11  procedures established by law and may hold hearings and make 
 21.12  determinations upon its own motion to the same extent, and in 
 21.13  every instance, in which it may do so upon petition.  Upon 
 21.14  receiving petitions filed pursuant to sections ~~221.061, 221.081,~~ 
 21.15  221.121, subdivision 1, 221.151, 221.296, and 221.55, the board 
 21.16  shall give notice of the filing of the petition to 
 21.17  representatives of associations or other interested groups or 
 21.18  persons who have registered their names with the board for that 
 21.19  purpose and to whomever the board deems to be interested in the 
 21.20  petition.  The board may grant or deny the request of the 
 21.21  petition 30 days after notice of the filing has been fully 
 21.22  given.  If the board receives a written objection and notice of 
 21.23  intent to appear at a hearing to object to the petition from any 
 21.24  person within 20 days of the notice having been fully given, the 
 21.25  request of the petition shall be granted or denied only after a 
 21.26  contested case hearing has been conducted on the petition, 
 21.27  unless the objection is withdrawn prior to the hearing.  The 
 21.28  board may elect to hold a contested case hearing if no 
 21.29  objections to the petition are received.  If a timely objection 
 21.30  is not received, or if received and withdrawn, and the request 
 21.31  of the petition is denied without hearing, the petitioner may 
 21.32  request within 30 days of receiving the notice of denial, and 
 21.33  shall be granted, a contested case hearing on the petition. 
 21.34     Sec. 3.  Minnesota Statutes 1998, section 174A.06, is 
 21.35  amended to read: 
 21.36     174A.06 [CONTINUATION OF RULES.] 
 22.1      Orders and directives in force, issued, or promulgated 
 22.2   under authority of chapters 174A, 216A, 218, 219, 221, and 222 
 22.3   remain and continue in force and effect until repealed, 
 22.4   modified, or superseded by duly authorized orders or directives 
 22.5   of the commissioner of transportation.  To the extent allowed 
 22.6   under federal law or regulation, rules adopted under authority 
 22.7   of the following sections are transferred to the commissioner of 
 22.8   transportation and continue in force and effect until repealed, 
 22.9   modified, or superseded by duly authorized rules of the 
 22.10  commissioner:  
 22.11     (1) section 218.041 except rules related to the form and 
 22.12  manner of filing railroad rates, railroad accounting rules, and 
 22.13  safety rules; 
 22.14     (2) section 219.40; 
 22.15     (3) rules relating to rates or tariffs, or the granting, 
 22.16  limiting, or modifying of permits or certificates of convenience 
 22.17  and necessity under section 221.031, subdivision 1; 
 22.18     (4) rules relating to the sale, assignment, pledge, or 
 22.19  other transfer of a stock interest in a corporation holding 
 22.20  authority to operate as a permit carrier as prescribed in 
 22.21  section 221.151, subdivision 1, or a local cartage carrier under 
 22.22  section 221.296, subdivision 8; 
 22.23     (5) rules relating to rates, charges, and practices under 
 22.24  section 221.161, subdivision 4; and 
 22.25     (6) rules relating to rates, tariffs, or the granting, 
 22.26  limiting, or modifying of permits under sections 221.121, 
 22.27  221.151, and 221.296 ~~or certificates of convenience and~~ 
 22.28  ~~necessity under section 221.071~~.  
 22.29     The commissioner shall review the transferred rules, 
 22.30  orders, and directives and, when appropriate, develop and adopt 
 22.31  new rules, orders, or directives. 
 22.32     Sec. 4.  Minnesota Statutes 1998, section 221.011, 
 22.33  subdivision 37, is amended to read: 
 22.34     Subd. 37.  [CERTIFICATED CARRIER.] "Certificated carrier" 
 22.35  means a motor carrier holding a certificate ~~issued under section~~ 
 22.36  ~~221.071~~ of registration. 
 23.1      Sec. 5.  Minnesota Statutes 1998, section 221.011, 
 23.2   subdivision 38, is amended to read: 
 23.3      Subd. 38.  [CLASS I CARRIER.] "Class I carrier" means a 
 23.4   person who has been issued a certificate ~~under section 221.071~~ 
 23.5   ~~to operate as a class I carrier~~ of registration. 
 23.6      Sec. 6.  Minnesota Statutes 1998, section 221.026, 
 23.7   subdivision 2, is amended to read: 
 23.8      Subd. 2.  [EXEMPTIONS FROM REQUIREMENTS.] Notwithstanding 
 23.9   any other law, a motor carrier of property is exempt from 
 23.10  sections 221.021; ~~221.041; 221.061; 221.071;~~ 221.072; ~~221.081;~~ 
 23.11  221.121; 221.122; 221.123; 221.131; 221.132; 221.151; 221.161; 
 23.12  221.172, subdivisions 3 to 8; 221.185, except as provided in 
 23.13  subdivision 4; and 221.296.  The exemptions in this subdivision 
 23.14  do not apply to a motor carrier of property while transporting 
 23.15  household goods. 
 23.16     Sec. 7.  Minnesota Statutes 1998, section 221.036, 
 23.17  subdivision 1, is amended to read: 
 23.18     Subdivision 1.  [ORDER.] The commissioner may issue an 
 23.19  order requiring violations to be corrected and administratively 
 23.20  assessing monetary penalties for a violation of (1) section 
 23.21  221.021; (2) section 221.033, subdivision 2b; (3) ~~section~~ 
 23.22  ~~221.041, subdivision 3; (4) section 221.081; (5)~~ section 
 23.23  221.151; ~~(6)~~ (4) section 221.171; ~~(7)~~ (5) section 221.141; 
 23.24  ~~(8)~~ (6) section 221.035, or a material term or condition of a 
 23.25  license issued under that section; or (7) rules of the board or 
 23.26  commissioner relating to the transportation of hazardous waste, 
 23.27  motor carrier operations, insurance, or tariffs and accounting.  
 23.28  An order must be issued as provided in this section. 
 23.29     Sec. 8.  Minnesota Statutes 1998, section 221.036, 
 23.30  subdivision 3, is amended to read: 
 23.31     Subd. 3.  [AMOUNT OF PENALTY; CONSIDERATIONS.] (a) The 
 23.32  commissioner may issue an order assessing a penalty of up to 
 23.33  $5,000 for all violations of section 221.021; ~~221.041,~~ 
 23.34  ~~subdivision 3; 221.081;~~ 221.141; 221.151; or 221.171, or rules 
 23.35  of the board or commissioner relating to motor carrier 
 23.36  operations, insurance, or tariffs and accounting, identified 
 24.1   during a single inspection, audit, or investigation. 
 24.2      (b) The commissioner may issue an order assessing a penalty 
 24.3   up to a maximum of $10,000 for all violations of section 
 24.4   221.033, subdivision 2b, or 221.035, and rules adopted under 
 24.5   those sections, identified during a single inspection or audit. 
 24.6      (c) In determining the amount of a penalty, the 
 24.7   commissioner shall consider: 
 24.8      (1) the willfulness of the violation; 
 24.9      (2) the gravity of the violation, including damage to 
 24.10  humans, animals, air, water, land, or other natural resources of 
 24.11  the state; 
 24.12     (3) the history of past violations, including the 
 24.13  similarity of the most recent violation and the violation to be 
 24.14  penalized, the time elapsed since the last violation, the number 
 24.15  of previous violations, and the response of the person to the 
 24.16  most recent violation identified; 
 24.17     (4) the economic benefit gained by the person by allowing 
 24.18  or committing the violation; and 
 24.19     (5) other factors as justice may require, if the 
 24.20  commissioner specifically identifies the additional factors in 
 24.21  the commissioner's order. 
 24.22     Sec. 9.  Minnesota Statutes 1998, section 221.122, 
 24.23  subdivision 1, is amended to read: 
 24.24     Subdivision 1.  [REGISTRATION, INSURANCE, AND FILING 
 24.25  REQUIREMENTS.] An order issued by the board which grants a 
 24.26  certificate or permit must contain a service date.  The person 
 24.27  to whom the order granting the certificate or permit is issued 
 24.28  shall do the following within 45 days from the service date of 
 24.29  the order:  
 24.30     (1) register vehicles which will be used to provide 
 24.31  transportation under the permit or certificate with the 
 24.32  commissioner and pay the vehicle registration fees required by 
 24.33  law; 
 24.34     (2) file and maintain insurance or bond as required by 
 24.35  sections 221.141 and 221.296 and rules of the commissioner and 
 24.36  board; and 
 25.1      (3) file rates and tariffs as required by ~~sections 221.041~~ 
 25.2   ~~and~~ section 221.161 and rules of the commissioner and board.  
 25.3      Sec. 10.  Minnesota Statutes 1998, section 221.185, 
 25.4   subdivision 2, is amended to read: 
 25.5      Subd. 2.  [NOTICE OF SUSPENSION.] (a) Failure to file and 
 25.6   maintain insurance, renew permits under section 221.131, or to 
 25.7   pay annual vehicle registration fees or renew permits under 
 25.8   section ~~221.071,~~ 221.131~~,~~ or 221.296, or to maintain in good 
 25.9   standing a protective agent's or private detective's license 
 25.10  required under section 221.121, subdivision 6g, or 221.153, 
 25.11  subdivision 3, suspends a motor carrier's permit or certificate 
 25.12  two days after the commissioner sends notice of the suspension 
 25.13  by certified mail, return receipt requested, to the last known 
 25.14  address of the motor carrier.  
 25.15     (b) In order to avoid permanent cancellation of the permit 
 25.16  or certificate, the motor carrier must do one of the following 
 25.17  within 45 days from the date of suspension:  
 25.18     (1) comply with the law by filing insurance or bond, 
 25.19  renewing permits, or paying vehicle registration fees; or 
 25.20     (2) request a hearing before the board regarding the 
 25.21  failure to comply with the law. 
 25.22     Sec. 11.  Minnesota Statutes 1998, section 221.185, 
 25.23  subdivision 4, is amended to read: 
 25.24     Subd. 4.  [FAILURE TO COMPLY, CANCELLATION.] Except as 
 25.25  provided in subdivision 5a, failure to comply with the 
 25.26  requirements of sections 221.141 and 221.296 relating to bonds 
 25.27  and insurance, 221.131 relating to permit renewal, ~~221.071,~~ 
 25.28  221.131~~,~~ or 221.296 relating to annual vehicle registration or 
 25.29  permit renewal, 221.121, subdivision 6g, or 221.153, subdivision 
 25.30  3, relating to protective agent or private detective licensure, 
 25.31  or to request a hearing within 45 days of the date of 
 25.32  suspension, is deemed an abandonment of the motor carrier's 
 25.33  permit or certificate and the permit or certificate must be 
 25.34  canceled by the commissioner. 
 25.35     Sec. 12.  Minnesota Statutes 1998, section 221.185, 
 25.36  subdivision 9, is amended to read: 
 26.1      Subd. 9.  [NEW PETITION.] If the holder of a canceled 
 26.2   permit or certificate seeks authority to operate as a motor 
 26.3   carrier it shall file a petition with the commissioner for a 
 26.4   permit or certificate as provided in section ~~221.061,~~ 221.121~~,~~ 
 26.5   or 221.296, whichever is applicable.  
 26.6      Sec. 13.  Minnesota Statutes 1998, section 221.221, 
 26.7   subdivision 3, is amended to read: 
 26.8      Subd. 3.  [DELEGATED POWERS.] Representatives of the 
 26.9   department to whom authority has been delegated by the 
 26.10  commissioner for the purpose of enforcing sections 169.781 to 
 26.11  169.783~~, 221.041,~~ and 221.171 and the rules, orders, or 
 26.12  directives of the commissioner or board adopted or issued under 
 26.13  those sections, and for no other purpose, shall have the powers 
 26.14  conferred by law upon police officers.  The representatives of 
 26.15  the department have the power to inspect records, logs, freight 
 26.16  bills, bills of lading, or other documents which may provide 
 26.17  evidence to determine compliance with sections 169.781 to 
 26.18  169.783~~, 221.041,~~ and 221.171. 
 26.19     Sec. 14.  Minnesota Statutes 1998, section 221.55, is 
 26.20  amended to read: 
 26.21     221.55 [CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.] 
 26.22     No person or corporation shall engage in the transportation 
 26.23  described in section 221.54 without a certificate of public 
 26.24  convenience and necessity from the board authorizing such 
 26.25  operation.  Such certificate shall be issued by the board 
 26.26  pursuant to application, notice, and hearing ~~as provided in~~ 
 26.27  ~~sections 221.061 and 221.071~~, and the issuance of certificates 
 26.28  and the transportation covered thereby shall be governed by the 
 26.29  provisions of ~~such sections and by sections~~ section 221.031, 
 26.30  ~~221.041, 221.051 and 221.081,~~ applying to certificated common 
 26.31  carriers for hire, insofar as such provisions are not 
 26.32  inconsistent with section 221.54 and this section. 
 26.33     Sec. 15.  [EFFECTIVE DATE.] 
 26.34     Sections 1 to 14 are effective January 1, 2000.