1.1                          A bill for an act 
  1.2             relating to transportation; modifying certain 
  1.3             provisions relating to motor carriers of passengers; 
  1.4             appropriating money; amending Minnesota Statutes 1996, 
  1.5             sections 168.011, subdivision 35; 168.128, subdivision 
  1.6             3; 169.122, subdivision 5; 221.011, subdivisions 15, 
  1.7             21, and by adding a subdivision; 221.021; 221.031, 
  1.8             subdivisions 1, 2, 3b, and 6; 221.0314, by adding a 
  1.9             subdivision; 221.091; 221.124; 221.131, subdivision 2; 
  1.10            221.141, subdivision 1; 221.172, subdivision 10; 
  1.11            221.185, subdivisions 1, 3, and by adding a 
  1.12            subdivision; 221.291, subdivision 4; and 221.55; 
  1.13            proposing coding for new law in Minnesota Statutes, 
  1.14            chapter 221; repealing Minnesota Statutes 1996, 
  1.15            sections 168.011, subdivision 36; 168.1281; 221.011, 
  1.16            subdivisions 20, 21, 32, and 34; 221.051; 221.121, 
  1.17            subdivisions 6b and 6h; 221.172, subdivisions 4, 5, 6, 
  1.18            7, 8, and 9; 221.281; 221.84, subdivisions 2, 3, and 
  1.19            4; and 221.85; Minnesota Statutes 1997 Supplement, 
  1.20            section 221.84, subdivision 1; Minnesota Rules, parts 
  1.21            8880.0100; 8880.0200; 8880.0300; 8880.0400; 8880.0500; 
  1.22            8880.0600; 8880.0700; 8880.0800; 8880.0900; 8880.1000; 
  1.23            8880.1100; 8880.1200; 8880.1300; and 8880.1400. 
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25                             ARTICLE 1 
  1.26                           MOTOR CARRIERS 
  1.27     Section 1.  Minnesota Statutes 1996, section 168.011, 
  1.28  subdivision 35, is amended to read: 
  1.29     Subd. 35.  [LIMOUSINE.] ~~For purposes of motor vehicle~~ 
  1.30  ~~registration only,~~ "Limousine" means an unmarked luxury 
  1.31  passenger automobile that is not a van or station wagon and has 
  1.32  a seating capacity of not more than 12 persons, excluding the 
  1.33  driver.  
  1.34     Sec. 2.  Minnesota Statutes 1996, section 221.011, 
  2.1   subdivision 15, is amended to read: 
  2.2      Subd. 15.  [MOTOR CARRIER.] "Motor carrier" means a ~~carrier~~ 
  2.3   ~~operating for hire under the authority of this chapter and~~ 
  2.4   ~~subject to the rules and orders of the commissioner or the board~~ 
  2.5   person engaged in the for-hire transportation of property or 
  2.6   passengers.  "Motor carrier" does not include a person providing 
  2.7   transportation described in section 221.025, a building mover 
  2.8   subject to section 221.81, or a person providing taxi service. 
  2.9      Sec. 3.  Minnesota Statutes 1996, section 221.011, is 
  2.10  amended by adding a subdivision to read: 
  2.11     Subd. 48.  [TAXI SERVICE.] "Taxi service" means for-hire 
  2.12  passenger transportation that is (1) not offered on a fixed 
  2.13  route or schedule, (2) available to passengers with or without 
  2.14  prior arrangement, and (3) provided in a vehicle that is 
  2.15  equipped with a meter, two-way communications system, and top 
  2.16  light that indicates availability for service, is clearly marked 
  2.17  as a taxi, and is designed to transport not more than seven 
  2.18  passengers including the driver. 
  2.19     Sec. 4.  Minnesota Statutes 1996, section 221.021, is 
  2.20  amended to read: 
  2.21     221.021 [OPERATION CERTIFICATE OR PERMIT REQUIRED.] 
  2.22     Subdivision 1.  [REQUIREMENT.] No person may operate as a 
  2.23  motor carrier or advertise or otherwise hold out as a motor 
  2.24  carrier without a certificate of registration or permit in 
  2.25  effect.  A ~~certificate or~~ permit may be suspended or revoked 
  2.26  upon conviction of violating a provision of sections 221.011 to 
  2.27  221.296 or an order or rule of the commissioner ~~or board~~ 
  2.28  governing the operation of motor carriers, and upon a finding by 
  2.29  the court that the violation was willful.  The ~~board~~ 
  2.30  commissioner may, for good cause after a hearing, suspend or 
  2.31  revoke a ~~certificate or~~ permit for a violation of a provision of 
  2.32  sections 221.011 to 221.296 or an order issued or rule adopted 
  2.33  by the commissioner or board under this chapter.  
  2.34     Subd. 2.  [SANCTIONS.] The commissioner may suspend, 
  2.35  revoke, or deny renewal of a certificate of registration for (1) 
  2.36  serious or repeated violations of this chapter, or (2) a pattern 
  3.1   of repeated violations of local ordinances governing traffic and 
  3.2   parking.  
  3.3      Subd. 3.  [HEARING.] A motor carrier affected by an action 
  3.4   of the commissioner under subdivision 2 may, within 20 days of 
  3.5   receipt of a notice of the commissioner's action, request an 
  3.6   administrative hearing to review the certificate suspension, 
  3.7   revocation, or denial of renewal.  The hearing must be conducted 
  3.8   under the conference contested case rules of the office of 
  3.9   administrative hearings. 
  3.10     Sec. 5.  [221.0252] [PASSENGER CARRIERS; REGISTRATION; 
  3.11  EXEMPTIONS.] 
  3.12     Subdivision 1.  [FILING REQUIRED.] No person may operate as 
  3.13  a motor carrier of passengers unless the person has filed with 
  3.14  the commissioner a complete and accurate federal motor carrier 
  3.15  identification report, form MCS-150, and, on a form the 
  3.16  commissioner prescribes, the make, model, seating capacity, and 
  3.17  license plate and vehicle identification number of each vehicle 
  3.18  that the registrant will be using in those operations for which 
  3.19  registration is required. 
  3.20     Subd. 2.  [SIGNATURE REQUIRED.] A form required under this 
  3.21  section may be signed only by a corporate officer, general 
  3.22  partner, limited liability company board member, or sole 
  3.23  proprietor.  
  3.24     Subd. 3.  [AUDIT; INSPECTION.] Within 90 days of issuing a 
  3.25  new certificate of registration to a carrier under this section, 
  3.26  and before issuing an annual renewal of a certificate of 
  3.27  registration, the commissioner shall: 
  3.28     (1) conduct an audit of the carrier's records; 
  3.29     (2) inspect the vehicles the carrier uses in its motor 
  3.30  carrier operation to determine if they comply with the federal 
  3.31  regulations incorporated in section 221.0314 or accept for 
  3.32  filing proof that such an inspection was conducted within the 
  3.33  previous 30 days by a qualified vehicle inspector certified by 
  3.34  the department of public safety; 
  3.35     (3) verify that the carrier has a designated office in 
  3.36  Minnesota where the books and files necessary to conduct 
  4.1   business and the records required by this chapter are kept and 
  4.2   shall be available for inspection by the commissioner; 
  4.3      (4) audit the carrier's drivers' criminal background and 
  4.4   safety records; and 
  4.5      (5) verify compliance with the insurance requirements of 
  4.6   section 221.141. 
  4.7      Subd. 4.  [CERTIFICATE OF REGISTRATION; REQUIREMENTS; 
  4.8   ISSUANCE; DURATION.] (a) The commissioner shall issue a 
  4.9   certificate of registration to a carrier who has (1) complied 
  4.10  with subdivisions 1 and 2, (2) has paid the required fee, (3) in 
  4.11  the case of an annual renewal, has been audited and inspected 
  4.12  under subdivision 3, and (4) has complied with the financial 
  4.13  responsibility requirements in section 221.141.  
  4.14     (b) A photocopy of the carrier's certificate of 
  4.15  registration must be carried in each vehicle operated under the 
  4.16  registration and must be made available to the department and 
  4.17  other law enforcement officials upon request. 
  4.18     (c) Registration under this section is not assignable or 
  4.19  transferable and is valid until it expires or is suspended, 
  4.20  revoked, or canceled, whichever occurs first.  A registration is 
  4.21  valid for one year from the date issued. 
  4.22     Subd. 5.  [SUSPENSION FOR UNSATISFACTORY SAFETY 
  4.23  RATING.] Following the procedures in section 221.185, the 
  4.24  commissioner shall immediately suspend the registration of a 
  4.25  carrier who receives an unsatisfactory safety rating.  The 
  4.26  commissioner shall conduct one follow-up compliance audit to 
  4.27  determine if the carrier's safety rating should be changed or 
  4.28  the suspension rescinded within 30 days of receiving a written 
  4.29  request from the carrier.  Additional compliance reviews may be 
  4.30  conducted at the commissioner's discretion. 
  4.31     Subd. 6.  [ANNUAL RENEWAL.] A carrier registered under this 
  4.32  section must renew its registration each year on a form 
  4.33  prescribed by the commissioner.  The commissioner shall develop 
  4.34  and implement an expedited renewal process to minimize the 
  4.35  burden on motor carriers. 
  4.36     Subd. 7.  [FEES.] The fee for initial registration and each 
  5.1   subsequent renewal under this section is $500.  All fees under 
  5.2   this subdivision must be deposited in the trunk highway fund. 
  5.3      Subd. 8.  [EXEMPTIONS FROM REGULATION.] Notwithstanding any 
  5.4   other law, motor carriers of passengers are exempt from sections 
  5.5   221.041; 221.061; 221.071; 221.081; 221.121; 221.122; 221.123; 
  5.6   221.132; 221.151; 221.161; and 221.171. 
  5.7      Sec. 6.  [221.0253] [PASSENGER CARRIERS; SERVICE 
  5.8   RESTRICTIONS.] 
  5.9      Subdivision 1.  [TYPES OF SERVICE OFFERED.] A motor carrier 
  5.10  of passengers may offer and provide passenger transportation 
  5.11  only by advance reservation or arrangement or by means of fixed 
  5.12  routes or schedules. 
  5.13     Subd. 2.  [TAXI SERVICE PROHIBITED.] A motor carrier of 
  5.14  passengers may not provide taxi service in any vehicle in which 
  5.15  the carrier provides any other type of passenger transportation. 
  5.16     Subd. 3.  [ADVERTISING; SOLICITATION.] A motor carrier of 
  5.17  passengers may not solicit passengers in person to provide 
  5.18  passenger transportation at the time of, or shortly after, the 
  5.19  solicitation.  This subdivision does not prohibit a motor 
  5.20  carrier of passengers from advertising its services in the 
  5.21  normal course of business. 
  5.22     Sec. 7.  Minnesota Statutes 1996, section 221.031, 
  5.23  subdivision 1, is amended to read: 
  5.24     Subdivision 1.  [POWERS, DUTIES, REPORTS, LIMITATIONS.] (a) 
  5.25  This subdivision applies to motor carriers engaged in intrastate 
  5.26  commerce. 
  5.27     (b) The commissioner shall prescribe rules for the 
  5.28  operation of motor carriers, including their facilities; 
  5.29  accounts; leasing of vehicles and drivers; service; safe 
  5.30  operation of vehicles; equipment, parts, and accessories; hours 
  5.31  of service of drivers; driver qualifications; accident 
  5.32  reporting; identification of vehicles; installation of safety 
  5.33  devices; inspection, repair, and maintenance; and proper 
  5.34  automatic speed regulators if, in the opinion of the 
  5.35  commissioner, there is a need for the rules.  
  5.36     (c) The commissioner shall direct the repair and 
  6.1   reconstruction or replacement of an inadequate or unsafe motor 
  6.2   carrier vehicle or facility.  The commissioner may require the 
  6.3   construction and maintenance or furnishing of suitable and 
  6.4   proper freight terminals, passenger depots, waiting rooms, and 
  6.5   accommodations or shelters in a city in this state or at a point 
  6.6   on the highway traversed which the commissioner, after 
  6.7   investigation by the department, may deem just and proper for 
  6.8   the protection of passengers or property.  
  6.9      (d) The commissioner shall require holders of household 
  6.10  goods mover permits~~, charter carrier permits, and regular route~~ 
  6.11  ~~passenger carrier certificates~~ to file annual and other reports 
  6.12  including annual accounts of motor carriers, schedules of rates 
  6.13  and charges, or other data by motor carriers, regulate motor 
  6.14  carriers in matters affecting the relationship between them and 
  6.15  the traveling and shipping public, and prescribe other rules as 
  6.16  may be necessary to carry out the provisions of this chapter.  
  6.17     (e) A motor carrier subject to paragraph (d) but having 
  6.18  gross revenues from for-hire transportation in a calendar year 
  6.19  of less than $200,000 may, at the discretion of the 
  6.20  commissioner, be exempted from the filing of an annual report, 
  6.21  if instead the motor carrier files an abbreviated annual report, 
  6.22  in a form as may be prescribed by the commissioner, attesting 
  6.23  that the motor carrier's gross revenues did not exceed $200,000 
  6.24  in the previous calendar year.  Motor carrier gross revenues 
  6.25  from for-hire transportation, for the purposes of this 
  6.26  subdivision only, do not include gross revenues received from 
  6.27  the operation of school buses as defined in section 169.01, 
  6.28  subdivision 6. 
  6.29     (f) The commissioner shall enforce sections 169.781 to 
  6.30  169.783. 
  6.31     ~~(g) The commissioner shall make no rules relating to the~~ 
  6.32  ~~granting, limiting, or modifying of permits or certificates of~~ 
  6.33  ~~convenience and necessity, which are powers granted to the board.~~
  6.34     ~~(h) The board may extend the termini of a route or alter or~~ 
  6.35  ~~change the route of a regular route common carrier upon petition~~ 
  6.36  ~~and after finding that public convenience and necessity require~~ 
  7.1   ~~an extension, alteration, or change.~~ 
  7.2      Sec. 8.  Minnesota Statutes 1996, section 221.031, 
  7.3   subdivision 2, is amended to read: 
  7.4      Subd. 2.  [EXEMPTIONS FOR PRIVATE CARRIERS.] This 
  7.5   subdivision applies to private carriers engaged in intrastate 
  7.6   commerce. 
  7.7      (a) Private carriers operating vehicles with a gross 
  7.8   vehicle weight of more than 10,000 pounds shall comply 
  7.9   with ~~rules adopted under~~ those federal regulations incorporated 
  7.10  by reference in: 
  7.11     (1) section 221.0314, subdivisions 2 to 5, for driver 
  7.12  qualifications; 
  7.13     (2) section 221.0314, subdivision 9, for hours of service 
  7.14  of drivers; 
  7.15     (3) section 221.0314, subdivision 6, for driving of motor 
  7.16  vehicles; 
  7.17     (4) section 221.0314, subdivision 7, for parts and 
  7.18  accessories necessary for safe operation; and 
  7.19     (5) section 221.0314, subdivision 10, for inspection, 
  7.20  repair, and maintenance~~; and~~. 
  7.21     ~~(6) this section for leasing of vehicles or vehicles and~~ 
  7.22  ~~drivers.~~ 
  7.23     ~~Private carriers not subject to the rules for driver~~ 
  7.24  ~~qualifications before August 1, 1992, must comply with those~~ 
  7.25  ~~rules on and after August 1, 1994.~~ 
  7.26     (b) The rules for hours of service of drivers do not apply 
  7.27  to private carriers who are (1) public utilities as defined in 
  7.28  section 216B.02, subdivision 4; (2) cooperative electric 
  7.29  associations organized under chapter 308A; (3) telephone 
  7.30  companies as defined in section 237.01, subdivision 2; or (4) 
  7.31  engaged in the transportation of construction materials, tools 
  7.32  and equipment from shop to job site or job site to job site, for 
  7.33  use by the private carrier in the new construction, remodeling, 
  7.34  or repair of buildings, structures or their appurtenances. 
  7.35     (c) The rules for driver qualifications and hours of 
  7.36  service of drivers do not apply to vehicles controlled by a 
  8.1   farmer and operated by a farmer or farm employee to transport 
  8.2   agricultural products, farm machinery, or supplies to or from a 
  8.3   farm if the vehicle is not used in the operations of a motor 
  8.4   carrier and not carrying hazardous materials of a type or 
  8.5   quantity that requires the vehicle to be marked or placarded in 
  8.6   accordance with section 221.033.  
  8.7      (d) The rules for driver qualifications do not apply to a 
  8.8   driver employed by a private carrier while operating a 
  8.9   lightweight vehicle. 
  8.10     Sec. 9.  Minnesota Statutes 1996, section 221.031, 
  8.11  subdivision 6, is amended to read: 
  8.12     Subd. 6.  [VEHICLE IDENTIFICATION RULE.] (a) The following 
  8.13  carriers shall display the carrier's name and address on the 
  8.14  power unit of each vehicle:  
  8.15     (1) motor carriers, regardless of the weight of the 
  8.16  vehicle, except that this requirement does not apply to a 
  8.17  limousine as defined in section 168.011, subdivision 35, that is 
  8.18  equipped with "LM" license plates; 
  8.19     (2) interstate and intrastate private carriers operating 
  8.20  vehicles with a gross vehicle weight of more than 10,000 pounds; 
  8.21  and 
  8.22     (3) vehicles providing transportation described in section 
  8.23  221.025 with a gross vehicle weight of more than 10,000 pounds 
  8.24  except those providing transportation described in section 
  8.25  221.025, clauses (a), (c), and (d).  
  8.26     Vehicles described in clauses (2) and (3) that are operated 
  8.27  by farmers or farm employees and have four or fewer axles are 
  8.28  not required to comply with the vehicle identification rule of 
  8.29  the commissioner. 
  8.30     (b) Vehicles subject to this subdivision must show the name 
  8.31  or "doing business as" name of the carrier operating the vehicle 
  8.32  and the community and abbreviation of the state in which the 
  8.33  carrier maintains its principal office or in which the vehicle 
  8.34  is customarily based.  If the carrier operates a leased vehicle, 
  8.35  it may show its name and the name of the lessor on the vehicle, 
  8.36  if the lease relationship is clearly shown.  If the name of a 
  9.1   person other than the operating carrier appears on the vehicle, 
  9.2   the words "operated by" must immediately precede the name of the 
  9.3   carrier.  
  9.4      (c) The name and address must be in letters that contrast 
  9.5   sharply in color with the background, be readily legible during 
  9.6   daylight hours from a distance of 50 feet while the vehicle is 
  9.7   stationary, and be maintained in a manner that retains the 
  9.8   legibility of the markings.  The name and address may be shown 
  9.9   by use of a removable device if that device meets the 
  9.10  identification and legibility requirements of this subdivision. 
  9.11     Sec. 10.  Minnesota Statutes 1996, section 221.0314, is 
  9.12  amended by adding a subdivision to read: 
  9.13     Subd. 12.  [ADDITIONAL REQUIREMENTS FOR PASSENGER 
  9.14  CARRIERS.] (a) A motor carrier of passengers must comply with 
  9.15  Code of Federal Regulations, title 49, part 382, which is 
  9.16  incorporated by reference, regardless of the size of the vehicle 
  9.17  operated or type of driver's license required.  Sections 180.950 
  9.18  to 180.957 do not apply to a driver that is required to be 
  9.19  tested under this subdivision. 
  9.20     (b) A motor carrier of passengers, when operating a vehicle 
  9.21  that is designed to transport 15 or fewer passengers, including 
  9.22  the driver, or has a gross vehicle weight of 10,000 pounds or 
  9.23  less, must ensure that (1) the vehicle is clean, of good 
  9.24  appearance, free of body damage, and well painted; and (2) the 
  9.25  driver completes and carries a log showing the name of each 
  9.26  passenger transported, the pickup point, and the time the 
  9.27  service was arranged. 
  9.28     Sec. 11.  Minnesota Statutes 1996, section 221.091, is 
  9.29  amended to read: 
  9.30     221.091 [LIMITATIONS; RELATIONSHIP TO LOCAL REGULATION.] 
  9.31     Subdivision 1.  [LOCAL AUTHORITY OVER STREETS AND 
  9.32  HIGHWAYS.] ~~No provision in~~ Sections 221.011 to 221.291 ~~and~~ 
  9.33  ~~221.84 to 221.85 shall~~ do not authorize the use by ~~any~~ a carrier 
  9.34  of ~~any~~ a public highway in ~~any~~ a city of the first class in 
  9.35  violation of ~~any~~ a charter provision or ordinance of ~~such~~ the 
  9.36  city in effect January 1, 1925, unless ~~and except as such~~ the 
 10.1   charter ~~provisions~~ provision or ordinance ~~may be~~ is repealed 
 10.2   after that date~~; nor shall~~.  In addition, sections 221.011 to 
 10.3   221.291 ~~and 221.84 to 221.85 be construed as in any manner~~ 
 10.4   ~~taking from or curtailing~~ do not (1) curtail the right of ~~any~~ a 
 10.5   city to reasonably regulate or control the routing, parking, 
 10.6   speed or ~~the~~ safety of operation of a motor vehicle operated by 
 10.7   ~~any~~ a carrier under the terms of those sections, ~~or~~ (2) curtail 
 10.8   the general police power of ~~any such~~ the city over its highways~~;~~ 
 10.9   ~~nor shall sections 221.011 to 221.291 and 221.84 to 221.85 be~~ 
 10.10  ~~construed as abrogating~~, or (3) abrogate any provision of 
 10.11  the city's charter ~~of any such city~~ requiring certain conditions 
 10.12  to be complied with before ~~such~~ a carrier can use the highways 
 10.13  of ~~such~~ the city and ~~such~~ these rights and powers ~~herein~~ 
 10.14  ~~stated~~ are ~~hereby~~ expressly reserved and granted to ~~such~~ the 
 10.15  city~~; but~~.  However, no ~~such~~ city shall prohibit or deny the use 
 10.16  of the public highways within its territorial boundaries by ~~any~~ 
 10.17  ~~such~~ a carrier for ~~transportation of~~ transporting passengers or 
 10.18  property received within its boundaries to destinations 
 10.19  beyond ~~such~~ the city's boundaries, or for ~~transportation~~ 
 10.20  ~~of~~ transporting passengers or property from points beyond ~~such~~ 
 10.21  the city's boundaries to destinations within the ~~same~~ the city's 
 10.22  boundaries, or for ~~transportation of~~ transporting passengers or 
 10.23  property from points beyond ~~such~~ the city's boundaries through 
 10.24  ~~such municipality~~ the city to points beyond the city's 
 10.25  boundaries ~~of such municipality, where such operation~~ when the 
 10.26  carrier is operating pursuant to a certificate of ~~convenience~~ 
 10.27  ~~and necessity issued by the commission or to a permit issued by~~ 
 10.28  ~~the commissioner under section 221.84 or 221.85~~ registration 
 10.29  issued under this chapter. 
 10.30     Subd. 2.  [LOCAL LICENSING OF TAXI SERVICE.] A city that 
 10.31  issues licenses for taxi service must by ordinance provide for 
 10.32  regulation of taxi service.  An ordinance under this subdivision 
 10.33  must at a minimum provide for driver qualifications, insurance, 
 10.34  vehicle appearance and safety, and periodic vehicle 
 10.35  inspections.  A vehicle described in section 221.011, 
 10.36  subdivision 48, clause (3), may be used only to provide taxi 
 11.1   service. 
 11.2      Subd. 3.  [LOCAL ENFORCEMENT AUTHORITY.] A city or other 
 11.3   political subdivision that has adopted an ordinance that 
 11.4   complies with subdivision 2 may enforce subdivision 2 and 
 11.5   sections 221.021, subdivision 1; 221.0253, subdivisions 2 and 3; 
 11.6   221.0314, subdivision 12; and 221.0314, subdivision 12.  In 
 11.7   addition, a city of the first class that has adopted an 
 11.8   ordinance that complies with subdivision 2, may require a motor 
 11.9   carrier of passengers to register vehicles it intends to use for 
 11.10  the pickup of passengers within the city if they are designed to 
 11.11  transport 15 or fewer passengers, including the driver, or if 
 11.12  they have a gross vehicle weight of 10,000 pounds or less.  A 
 11.13  city that requires vehicle registration under this subdivision 
 11.14  must issue a distinctive decal for each vehicle registered.  A 
 11.15  city may stop registering vehicles under this subdivision if the 
 11.16  registration of additional vehicles will unreasonably and 
 11.17  adversely affect existing transit or taxi operations in the city.
 11.18     Subd. 4.  [METROPOLITAN AIRPORTS COMMISSION 
 11.19  AUTHORITY.] Notwithstanding any other law, the metropolitan 
 11.20  airports commission may regulate ground transportation, 
 11.21  including taxi service, to and from an airport under its 
 11.22  jurisdiction.  This authority includes, but is not limited to, 
 11.23  regulating the number and type of transportation service, making 
 11.24  concession agreements, prescribing rates, and establishing 
 11.25  vehicle standards. 
 11.26     Sec. 12.  Minnesota Statutes 1996, section 221.124, is 
 11.27  amended to read: 
 11.28     221.124 [INITIAL MOTOR CARRIER CONTACT PROGRAM.] 
 11.29     Subdivision 1.  [INITIAL MOTOR CARRIER CONTACT.] The 
 11.30  initial motor carrier contact program consists of an initial 
 11.31  contact, for educational purposes, between a motor carrier 
 11.32  required to participate and representatives of the department of 
 11.33  transportation.  The initial contact may be through an 
 11.34  educational seminar or, at the discretion of the department, 
 11.35  through a personal ~~meeting~~ contact with a representative of the 
 11.36  department.  The initial contact must consist of a discussion of 
 12.1   the statutes, rules, and regulations that apply to motor 
 12.2   carriers.  Topics discussed must include:  ~~carrier authority;~~ 
 12.3   ~~the leasing of drivers and vehicles;~~ insurance requirements; 
 12.4   ~~tariffs; annual reports;~~ accident reporting; accident 
 12.5   countermeasures; identification of vehicles; driver 
 12.6   qualifications; maximum hours of service of drivers; the safe 
 12.7   operation of vehicles; equipment, parts, and accessories; and 
 12.8   inspection, repair, and maintenance.  The department shall 
 12.9   provide written documentation of proof of compliance with the 
 12.10  requirements of subdivision 2 and shall give a copy of the 
 12.11  document to the motor carrier. 
 12.12     Subd. 2.  [PARTICIPATION REQUIRED.] A motor carrier 
 12.13  that ~~receives a certificate or permit from~~ first registers with 
 12.14  or receives a permit from the ~~board for new authority on~~ 
 12.15  ~~or~~ commissioner after ~~September 1, 1991~~ January 1, 1999, shall 
 12.16  participate in the initial motor carrier contact program.  A 
 12.17  motor carrier required to participate in the program must have 
 12.18  in attendance at least one motor carrier official having a 
 12.19  substantial interest or control, directly or indirectly, in or 
 12.20  over the operations conducted or to be conducted under 
 12.21  the ~~certificate~~ carrier's registration or permit. 
 12.22     Subd. 3.  [TIME FOR COMPLIANCE.] A motor carrier required 
 12.23  by subdivision 2 to participate in the program must do so within 
 12.24  90 days of the service date of the order granting the 
 12.25  ~~certificate or~~ permit or within 90 days of registering, unless 
 12.26  the commissioner extends the time for compliance.  Failure to 
 12.27  comply with the requirement of subdivision 2 makes the order 
 12.28  granting the ~~certificate or~~ permit or the carrier's registration 
 12.29  void upon expiration of the time for compliance. 
 12.30     Sec. 13.  Minnesota Statutes 1996, section 221.131, 
 12.31  subdivision 2, is amended to read: 
 12.32     Subd. 2.  [ANNUAL VEHICLE REGISTRATION; FEE.] (a) This 
 12.33  subdivision applies only to holders of household goods mover 
 12.34  permits and ~~charter carrier permits~~ motor carriers of passengers.
 12.35     (b) ~~The~~ A permit holder or motor carrier of passengers 
 12.36  shall pay an annual registration fee of $40 on each vehicle, 
 13.1   including pickup and delivery vehicles, operated by the ~~holder~~ 
 13.2   carrier under authority of the permit or certificate of 
 13.3   registration during the 12-month period or fraction of the 
 13.4   12-month period.  Trailers and semitrailers used by a permit 
 13.5   holder in combination with power units may not be counted as 
 13.6   vehicles in the computation of fees under this section if the 
 13.7   permit holder pays the fees for power units. 
 13.8      (c) The commissioner shall furnish a distinguishing annual 
 13.9   identification card for each vehicle or power unit for which a 
 13.10  fee has been paid.  The identification card must at all times be 
 13.11  carried in the vehicle or power unit to which it has been 
 13.12  assigned.  An identification card may be reassigned to another 
 13.13  vehicle or power unit upon application of the ~~permit holder~~ 
 13.14  carrier and payment of a transfer fee of $10.  An identification 
 13.15  card issued under this section is valid only for the period for 
 13.16  which the permit or certificate of registration is effective. 
 13.17     (d) A fee of $10 is charged for the replacement of an 
 13.18  unexpired identification card that has been lost.  
 13.19     (e) The proceeds of the fees collected under this 
 13.20  subdivision must be deposited in the trunk highway fund. 
 13.21     Sec. 14.  Minnesota Statutes 1996, section 221.141, 
 13.22  subdivision 1, is amended to read: 
 13.23     Subdivision 1.  [FINANCIAL RESPONSIBILITY OF CARRIERS.] (a) 
 13.24  No motor carrier and no interstate carrier shall operate a 
 13.25  vehicle until it has obtained and has in effect the minimum 
 13.26  amount of financial responsibility required by this section.  
 13.27  Policies of insurance, surety bonds, other types of security, 
 13.28  and endorsements must be continuously in effect and must remain 
 13.29  in effect until canceled.  Before providing transportation, the 
 13.30  motor carrier or interstate carrier shall secure and cause to be 
 13.31  filed with the commissioner and maintain in full effect, a 
 13.32  certificate of insurance in a form required by the commissioner, 
 13.33  evidencing public liability insurance in the amount prescribed.  
 13.34  The insurance must cover injuries and damage to persons or 
 13.35  property resulting from the operation or use of motor vehicles, 
 13.36  regardless of whether each vehicle is specifically described in 
 14.1   the policy.  This insurance does not apply to injuries or death 
 14.2   to the employees of the motor carrier or to property being 
 14.3   transported by the carrier.  ~~The commissioner shall require~~ 
 14.4   ~~cargo insurance for certificated carriers, except those carrying~~ 
 14.5   ~~passengers exclusively.  The commissioner may require a permit~~ 
 14.6   ~~carrier to file cargo insurance when the commissioner deems~~ 
 14.7   ~~necessary to protect the users of the service.~~  
 14.8      (b) Notwithstanding any other provision of this chapter, 
 14.9   the insurance required of a motor carrier of passengers must be 
 14.10  at least that amount required under Code of Federal Regulations, 
 14.11  title 49, section 387.33, as amended. 
 14.12     Sec. 15.  Minnesota Statutes 1996, section 221.172, 
 14.13  subdivision 10, is amended to read: 
 14.14     Subd. 10.  [RETAINED THREE YEARS.] A shipping document or 
 14.15  record described in ~~subdivisions~~ subdivision 2 ~~to 9~~ or 3, or a 
 14.16  copy of it, must be retained by the carrier for at least three 
 14.17  years from the date on the shipping document or record.  A 
 14.18  carrier may keep a shipping record described in ~~subdivisions~~ 
 14.19  subdivision 3 ~~to 9~~ by any technology that prevents the 
 14.20  alteration, modification, or erasure of the underlying data and 
 14.21  will enable production of an accurate and unaltered paper copy.  
 14.22  A carrier shall keep a shipping record in a manner that will 
 14.23  make it readily accessible and shall have a means of identifying 
 14.24  and producing a legible paper copy for inspection by the 
 14.25  commissioner upon request. 
 14.26     Sec. 16.  [221.178] [MOTOR CARRIERS OF PASSENGERS; CRIMINAL 
 14.27  BACKGROUND CHECK.] 
 14.28     Subdivision 1.  [CARRIER TO CONDUCT BACKGROUND CHECK.] A 
 14.29  motor carrier of passengers shall conduct, or cause to be 
 14.30  conducted, an initial background check of a person the carrier 
 14.31  hires or with whom the carrier contracts whose duties include 
 14.32  operating a vehicle used to transport passengers.  A subsequent 
 14.33  background check must be conducted every three years. 
 14.34     Subd. 2.  [SCOPE AND PROCEDURES OF CHECK.] Sections 
 14.35  299C.67, 299C.68, 299C.70, and 299C.71 apply to background 
 14.36  checks conducted under subdivision 1.  For purposes of this 
 15.1   section, when used in sections 299C.67, 299C.68, 299C.70, and 
 15.2   299C.71, the term "owner" refers to a motor carrier of 
 15.3   passengers and the term "manager" refers to a driver.  A motor 
 15.4   carrier of passengers may not use a driver to operate a vehicle 
 15.5   providing passenger transportation if the background check 
 15.6   response shows that the driver has been convicted of a 
 15.7   background check crime defined in section 299C.67, subdivision 
 15.8   2, paragraph (a) or (b).  
 15.9      Subd. 3.  [RECORDS.] A carrier shall keep a record, 
 15.10  identified by the employee's name, of a background check 
 15.11  conducted under this section.  A record must be made available 
 15.12  to the commissioner upon request. 
 15.13     Sec. 17.  Minnesota Statutes 1996, section 221.185, 
 15.14  subdivision 1, is amended to read: 
 15.15     Subdivision 1.  [GROUNDS FOR SUSPENSION.] Despite the 
 15.16  provisions of section 221.021, ~~authority to operate as~~ a 
 15.17  household goods mover permit or a motor carrier registration 
 15.18  issued under ~~sections 221.011 to 221.296~~ section 221.0251 or 
 15.19  221.0252 is suspended without a hearing, by order of the 
 15.20  commissioner, ~~for a period not to exceed 45 days upon the~~ 
 15.21  ~~occurrence of any of the following and upon notice of suspension~~ 
 15.22  ~~as provided in subdivision 2:~~ 
 15.23     ~~(a) the motor carrier~~ if the permit holder or carrier fails 
 15.24  to maintain and file with the commissioner, the insurance or 
 15.25  bond required by ~~sections~~ section 221.141 ~~and 221.296~~ and rules 
 15.26  ~~of the commissioner;~~ 
 15.27     ~~(b) the motor carrier fails to renew permits as required by~~ 
 15.28  ~~section 221.131;~~ 
 15.29     ~~(c)~~ adopted under that section or the ~~motor~~ carrier or 
 15.30  permit holder fails to pay annual vehicle registration fees or 
 15.31  renew permits as required by ~~sections 221.071,~~ section 221.131, 
 15.32  ~~and 221.296;~~ or 
 15.33     ~~(d) the motor carrier fails to maintain in good standing a~~ 
 15.34  ~~protective agent's or private detective's license required under~~ 
 15.35  ~~section 221.121, subdivision 6g, paragraph (b), or 221.153,~~ 
 15.36  ~~subdivision 3~~ the permit holder or carrier fails to pay an 
 16.1   administrative penalty under section 221.036. 
 16.2      Sec. 18.  Minnesota Statutes 1996, section 221.185, is 
 16.3   amended by adding a subdivision to read: 
 16.4      Subd. 2a.  [NOTICE OF SUSPENSION; EFFECTIVE DATE.] The 
 16.5   commissioner shall issue a notice of suspension if one of the 
 16.6   conditions described in subdivision 1 occurs.  The notice must 
 16.7   give the reason for suspension and must be sent to the last 
 16.8   known address of the carrier by certified mail, return receipt 
 16.9   requested.  A suspension is effective two days after a notice is 
 16.10  mailed. 
 16.11     Sec. 19.  Minnesota Statutes 1996, section 221.185, 
 16.12  subdivision 3, is amended to read: 
 16.13     Subd. 3.  [RESCIND SUSPENSION.] If the motor carrier 
 16.14  complies with the requirements of this chapter within 45 days 
 16.15  after the date of suspension and pays the required fees, 
 16.16  including a late vehicle registration fee of $5 for each vehicle 
 16.17  registered, the commissioner shall rescind the suspension unless 
 16.18  the carrier's registration has expired.  If a registered carrier 
 16.19  fails to comply within one year of the effective date of a 
 16.20  suspension, the carrier's registration is canceled.  
 16.21     Sec. 20.  Minnesota Statutes 1996, section 221.291, 
 16.22  subdivision 4, is amended to read: 
 16.23     Subd. 4.  [OPERATING WITHOUT ~~CERTIFICATE~~ REGISTRATION OR 
 16.24  PERMIT.] A person who operates a motor carrier without ~~obtaining~~ 
 16.25  ~~required certificates or permits to operate as required by this~~ 
 16.26  ~~chapter~~ first registering under section 221.0251 or 221.0252, or 
 16.27  who operates as a household goods mover without having obtained 
 16.28  the necessary permit, is guilty of a misdemeanor, and upon 
 16.29  conviction shall be fined not less than the maximum fine which 
 16.30  may be imposed for a misdemeanor for each violation.  
 16.31     Sec. 21.  [CONVERSION OF CERTIFICATES.] 
 16.32     A motor carrier of passengers with a valid certificate or 
 16.33  permit issued by the transportation regulation board, public 
 16.34  service commission, public utilities commission, or commissioner 
 16.35  of transportation before January 1, 1999, is deemed to have 
 16.36  registered under Minnesota Statutes, section 221.0252, and the 
 17.1   commissioner of transportation shall issue a certificate of 
 17.2   registration to the carrier.  A certificate of registration 
 17.3   issued under this section must include a date between January 
 17.4   30, 1999, and December 31, 1999, on which it expires.  Before a 
 17.5   certificate of registration expires, after giving notice to the 
 17.6   carrier, the commissioner shall follow the procedures in 
 17.7   Minnesota Statutes, section 221.0252 to renew the carrier's 
 17.8   registration.  Minnesota Statutes, section 221.124 does not 
 17.9   apply to a carrier who is issued a certificate of registration 
 17.10  under this section. 
 17.11     Sec. 22.  [APPROPRIATION.] 
 17.12     $158,000 for the fiscal year ending June 30, 1999, is 
 17.13  appropriated from the trunk highway fund to the commissioner of 
 17.14  transportation for the purposes of sections 1 to 21. 
 17.15     Sec. 23.  [REPEALER.] 
 17.16     (a) Minnesota Statutes 1996, sections 168.011, subdivision 
 17.17  36; 168.1281; 221.011, subdivisions 20, 21, 32, and 34; 221.051; 
 17.18  221.121, subdivisions 6b and 6h; 221.172, subdivisions 4, 5, 6, 
 17.19  7, 8, and 9; 221.281; 221.84, subdivisions 2, 3, and 4; and 
 17.20  221.85; and Minnesota Statutes 1997 Supplement, section 221.84, 
 17.21  subdivision 1, are repealed. 
 17.22     (b) Minnesota Rules, parts 8880.0100; 8880.0200; 8880.0300; 
 17.23  8880.0400; 8880.0500; 8880.0600; 8880.0700; 8880.0800; 
 17.24  8880.0900; 8880.1000; 8880.1100; 8880.1200; 8880.1300; and 
 17.25  8880.1400, are repealed. 
 17.26     Sec. 24.  [EFFECTIVE DATE.] 
 17.27     Sections 1 to 21 and 23 are effective January 1, 2000.  
 17.28  Section 22 is effective July 1, 1999. 
 17.29                             ARTICLE 2 
 17.30                       CONFORMING AMENDMENTS 
 17.31     Section 1.  Minnesota Statutes 1996, section 168.128, 
 17.32  subdivision 3, is amended to read: 
 17.33     Subd. 3.  [INSURANCE.] The application must include a 
 17.34  certificate of insurance verifying that a valid commercial 
 17.35  insurance policy is in effect and giving the name of the 
 17.36  insurance company and the number of the insurance policy.  The 
 18.1   policy must provide stated limits of liability, exclusive of 
 18.2   interest and costs, with respect to each vehicle for which 
 18.3   coverage is granted, of not less than $100,000 because of bodily 
 18.4   injury to one person in any one accident and, subject to said 
 18.5   limit for one person, of not less than $300,000 because of 
 18.6   injury to two or more persons in any one accident and of not 
 18.7   less than $100,000 because of injury to or destruction of 
 18.8   property.  The insurance company must notify the commissioner if 
 18.9   the policy is canceled or if the policy no longer provides the 
 18.10  coverage required by this subdivision. 
 18.11     The commissioner shall immediately notify the commissioner 
 18.12  of transportation if the policy of a person required to have a 
 18.13  permit ~~under section 221.84~~ is canceled or no longer provides 
 18.14  the coverage required by this subdivision. 
 18.15     Sec. 2.  Minnesota Statutes 1996, section 169.122, 
 18.16  subdivision 5, is amended to read: 
 18.17     Subd. 5.  [EXCEPTION.] This section does not apply to the 
 18.18  possession or consumption of alcoholic beverages by passengers 
 18.19  in: 
 18.20     (1) a bus operated under a charter as defined in section 
 18.21  221.011, subdivision 20; or 
 18.22     (2) a vehicle providing limousine service ~~as defined in~~ 
 18.23  ~~section 221.84, subdivision 1~~. 
 18.24     Sec. 3.  Minnesota Statutes 1996, section 221.011, 
 18.25  subdivision 21, is amended to read: 
 18.26     Subd. 21.  [CHARTER CARRIER.] "Charter carrier" means a 
 18.27  person who engages in the business of transporting the public by 
 18.28  motor vehicle under charter.  The term "charter carrier" does 
 18.29  not include regular route common carriers of passengers, school 
 18.30  buses or Head Start buses described in section 221.025, clause 
 18.31  (a), or persons providing limousine service ~~described in section~~ 
 18.32  ~~221.84~~. 
 18.33     Sec. 4.  Minnesota Statutes 1996, section 221.031, 
 18.34  subdivision 3b, is amended to read: 
 18.35     Subd. 3b.  [PASSENGER TRANSPORTATION; EXEMPTIONS.] (a) A 
 18.36  person who transports passengers for hire in intrastate 
 19.1   commerce, who is not made subject to the rules adopted in 
 19.2   section 221.0314 by any other provision of this section, must 
 19.3   comply with the rules for hours of service of drivers while 
 19.4   transporting employees of an employer who is directly or 
 19.5   indirectly paying the cost of the transportation. 
 19.6      (b) This subdivision does not apply to: 
 19.7      (1) a local transit commission; 
 19.8      (2) a transit authority created by law; or 
 19.9      (3) persons providing transportation: 
 19.10     (i) in a school bus as defined in section 169.01, 
 19.11  subdivision 6; 
 19.12     (ii) in a Head Start bus as defined in section 169.01, 
 19.13  subdivision 80; 
 19.14     (iii) in a commuter van; 
 19.15     (iv) in an authorized emergency vehicle as defined in 
 19.16  section 169.01, subdivision 5; 
 19.17     (v) in special transportation service certified by the 
 19.18  commissioner under section 174.30; 
 19.19     (vi) that is special transportation service as defined in 
 19.20  section 174.29, subdivision 1, when provided by a volunteer 
 19.21  driver operating a private passenger vehicle as defined in 
 19.22  section 169.01, subdivision 3a; 
 19.23     (vii) in a limousine ~~the service of which is licensed by~~ 
 19.24  ~~the commissioner under section 221.84~~; or 
 19.25     (viii) in a taxicab, if the fare for the transportation is 
 19.26  determined by a meter inside the taxicab that measures the 
 19.27  distance traveled and displays the fare accumulated. 
 19.28     Sec. 5.  Minnesota Statutes 1996, section 221.55, is 
 19.29  amended to read: 
 19.30     221.55 [CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.] 
 19.31     No person or corporation shall engage in the transportation 
 19.32  described in section 221.54 without a certificate of public 
 19.33  convenience and necessity from the board authorizing such 
 19.34  operation.  Such certificate shall be issued by the board 
 19.35  pursuant to application, notice and hearing as provided in 
 19.36  sections 221.061 and 221.071, and the issuance of certificates 
 20.1   and the transportation covered thereby shall be governed by the 
 20.2   provisions of such sections and by sections 221.031, 221.041, 
 20.3   ~~221.051~~ and 221.081, applying to certificated common carriers 
 20.4   for hire, insofar as such provisions are not inconsistent with 
 20.5   section 221.54 and this section. 
 20.6      Sec. 6.  [EFFECTIVE DATE.] 
 20.7      Sections 1 to 5 are effective January 1, 2000.