1.1 	A bill for an act
1.2 	relating to local and state government; abolishing the Metropolitan Council; 
1.3 	transferring duties to the commissioners of administration and natural resources; 
1.4 	transferring transportation and transit-related functions to Department of 
1.5 	Transportation; making conforming amendments to public safety radio 
1.6 	communication laws, fiscal disparity laws; providing for payment of bonds and 
1.7 	other debt obligations; repealing metropolitan land use planning provisions; ending 
1.8 	Metropolitan Council oversight of Metropolitan Airports Commission; transferring 
1.9 	Metropolitan Council powers and authority to Metropolitan Parks and Open Space 
1.10 	Commission; creating metropolitan area sanitary sewer district; appropriating 
1.11 	money;amending Minnesota Statutes 2016, sections 3.886, subdivision 4; 4A.02; 
1.12 	6.80, subdivision 3; 10.60, subdivision 1; 10A.01, subdivisions 24, 31, 32, 35; 
1.13 	13.201; 13.685; 13.72, subdivision 9; 15.0597, subdivision 1; 15.0599, subdivision 
1.14 	1; 15A.0815, subdivision 3; 15B.11, subdivision 3; 16A.88, subdivision 2; 16C.073, 
1.15 	subdivision 1; 16C.285, subdivision 1; 43A.346, subdivisions 1, 2; 47.52; 65B.43, 
1.16 	subdivision 20; 85.016; 85.017; 85.53, subdivision 3; 103B.155; 103B.231, 
1.17 	subdivisions 3a, 7, 9, 11; 103B.235, subdivision 3; 103B.255, subdivisions 8, 9, 
1.18 	12; 103D.401; 103D.405, subdivisions 3, 4, 5, 6; 103G.293; 114C.25; 114D.30, 
1.19 	subdivision 4; 115.741, subdivision 2; 115A.151; 115A.471; 115A.52; 116.16, 
1.20 	subdivision 2; 116.182, subdivision 1; 116D.04, subdivision 1a; 116G.03, 
1.21 	subdivision 5; 116G.15, subdivisions 2, 5; 116J.401, subdivision 2; 116M.15, 
1.22 	subdivision 1; 117.57, subdivision 3; 118A.07, subdivision 1; 124D.892, 
1.23 	subdivision 1; 134.201, subdivision 5; 145A.02, subdivision 16; 160.165, 
1.24 	subdivision 1; 160.265, subdivision 1; 160.93, subdivisions 1, 2, 2a; 162.09, 
1.25 	subdivision 4; 169.306; 169.781, subdivision 1; 169.791, subdivision 5; 169.792, 
1.26 	subdivision 11; 174.03, subdivisions 1, 4, 5, 6a; 174.04, subdivisions 1, 2; 174.247; 
1.27 	174.285, subdivision 4; 174.30, subdivision 4; 174.37, subdivision 2; 174.90; 
1.28 	174.93, subdivisions 1, 2; 216C.145, subdivision 1; 216C.15, subdivision 1; 
1.29 	216H.02, subdivision 2; 221.012, subdivision 38; 221.022; 221.031, subdivision 
1.30 	3a; 240.06, subdivision 2; 270.12, subdivision 3; 275.065, subdivision 3; 275.066; 
1.31 	275.62, subdivision 3; 275.70, subdivision 4; 297A.70, subdivisions 2, 3; 297A.992, 
1.32 	subdivisions 4, 5; 352.01, subdivisions 2a, 2b; 352.03, subdivision 1; 352.04, 
1.33 	subdivision 6; 352D.02, subdivision 1; 353.64, subdivision 7a; 363A.44, subdivision 
1.34 	1; 373.40, subdivision 1; 383A.81, subdivision 3; 383B.81, subdivision 3; 398A.04, 
1.35 	subdivisions 1, 2, 2a, 9; 403.30, subdivision 1; 403.31, subdivisions 4, 5; 403.36, 
1.36 	subdivision 1; 414.02, subdivision 3; 414.031, subdivision 4; 462A.04, subdivision 
1.37 	1; 462A.07, subdivision 11; 462A.222, subdivision 4; 462C.04, subdivision 2; 
1.38 	462C.071, subdivision 2; 465.82, subdivision 1; 469.174, subdivision 26; 469.351, 
1.39 	subdivision 2; 471.425, subdivision 1; 471.9997; 473.121, subdivisions 2, 14, 24; 
2.1 	473.142; 473.1425; 473.143; 473.144; 473.145; 473.146, subdivisions 1, 3, 4, by 
2.2 	adding subdivisions; 473.1466; 473.147; 473.149, subdivision 3; 473.166; 473.167, 
2.3 	subdivisions 2, 2a; 473.168, subdivision 2; 473.192, subdivisions 2, 3; 473.223; 
2.4 	473.301, subdivision 2; 473.303; 473.313; 473.315, subdivision 1; 473.325; 
2.5 	473.334, subdivision 1; 473.341; 473.351, subdivisions 1, 2, 3; 473.375; 473.384; 
2.6 	473.385; 473.386; 473.387, subdivisions 2, 3, 4; 473.3875; 473.39, subdivisions 
2.7 	1, as amended, 2, 2a, 5; 473.391; 473.3925; 473.399; 473.3994; 473.3995; 
2.8 	473.3997; 473.405; 473.4051, subdivision 1; 473.4056, subdivision 1; 473.4057, 
2.9 	subdivisions 1, 2, 3, 4, 6, 7, 8; 473.407, subdivisions 1, 3, 4, 5; 473.408; 473.409; 
2.10 	473.41, subdivision 1; 473.411, subdivision 5; 473.415, subdivision 1; 473.416; 
2.11 	473.42; 473.436, subdivisions 2, 3, 6; 473.446, subdivisions 1, 2, 3, 8, by adding 
2.12 	a subdivision; 473.448; 473.449; 473.602; 473.604, subdivision 1, by adding a 
2.13 	subdivision; 473.608, subdivision 19; 473.611, subdivision 5; 473.638; 473.64; 
2.14 	473.655; 473.661, subdivision 4; 473.667, subdivision 8; 473.8011; 473.910, 
2.15 	subdivision 3; 473F.02, subdivisions 7, 8; 473F.08, subdivisions 3, 5, 7a; 473F.13, 
2.16 	subdivision 1; 473H.04, subdivision 3; 473H.06, subdivisions 1, 5; 473H.08, 
2.17 	subdivision 4; 473J.25, by adding a subdivision; 477A.011, subdivisions 3, 38; 
2.18 	477A.0124, subdivision 2; 572A.02, subdivision 5; 604B.04, subdivision 7; 
2.19 	609.2231, subdivision 11; 609.594, subdivision 1; 609.6055, subdivision 1; 
2.20 	proposing coding for new law in Minnesota Statutes, chapters 115; 473; repealing 
2.21 	Minnesota Statutes 2016, sections 3.8841; 103B.235, subdivision 3a; 115.66; 
2.22 	115A.03, subdivision 19; 174.22, subdivision 3; 238.43, subdivision 5; 297A.992, 
2.23 	subdivision 12; 403.27; 403.29, subdivision 4; 403.32; 462.382; 462C.071, 
2.24 	subdivision 4; 473.121, subdivisions 3, 8, 12; 473.123, subdivisions 1, 2a, 3, 3a, 
2.25 	3e, 4, 8; 473.125; 473.127; 473.129; 473.1293; 473.132; 473.1565; 473.165; 
2.26 	473.167, subdivisions 3, 4; 473.175; 473.181, subdivisions 2, 5; 473.191; 473.206; 
2.27 	473.208; 473.24; 473.242; 473.245; 473.246; 473.249, subdivisions 1, 2; 473.25; 
2.28 	473.251; 473.253; 473.254; 473.255; 473.3875; 473.388, subdivisions 1, 2, 3, 4, 
2.29 	5, 7; 473.39, subdivision 4; 473.3993, subdivision 4; 473.3999; 473.411, 
2.30 	subdivisions 3, 4; 473.4461; 473.501, subdivisions 1, 3; 473.504, subdivisions 4, 
2.31 	5, 6, 9, 10, 11, 12; 473.505; 473.511, subdivisions 1, 2, 3, 4; 473.5111; 473.512; 
2.32 	473.513; 473.515; 473.5155; 473.516, subdivisions 1, 2, 3, 4; 473.517, subdivisions 
2.33 	1, 3, 6, 10; 473.519; 473.521; 473.523, subdivisions 1, 1a; 473.524; 473.541; 
2.34 	473.542; 473.543, subdivisions 1, 2, 3, 4; 473.545; 473.547; 473.549; 473.621, 
2.35 	subdivision 6; 473.834, subdivisions 1, 2; 473.851; 473.852, subdivisions 1, 2, 3, 
2.36 	4, 5, 6, 7, 8, 9, 10; 473.853; 473.854; 473.856; 473.857; 473.858; 473.859; 473.86; 
2.37 	473.861; 473.862; 473.864; 473.865; 473.866; 473.867, subdivisions 1, 2, 3, 5, 6; 
2.38 	473.869; 473.87; 473.871; 473.915; 473F.02, subdivision 21; 473F.08, subdivision 
2.39 	3b; 473H.02, subdivisions 7, 8; 473J.25, subdivision 5; Minnesota Rules, parts 
2.40 	5800.0010; 5800.0020; 5800.0030; 5800.0040; 5800.0050; 5800.0060; 5800.0070; 
2.41 	5800.0080; 5800.0090; 5800.0100; 5800.0110; 5800.0120; 5800.0130; 5800.0140; 
2.42 	5800.0150.
2.43 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.44 	ARTICLE 1
2.45 	METROPOLITAN COUNCIL ABOLISHED

2.46 	Section 1. Minnesota Statutes 2016, section 3.886, subdivision 4, is amended to read:
2.47 		Subd. 4.Powers and duties. (a) The Legislative Water Commission shall review water 
2.48 	policy reports and recommendations of the Environmental Quality Board, the Board of 
2.49 	Water and Soil Resources, the Pollution Control Agency, the Department of Natural 
3.1 	Resources, the Metropolitan Council, and other water-related reports as may be required 
3.2 	by law or the legislature.
3.3 	(b) The commission may conduct public hearings and otherwise secure data and 
3.4 	comments.
3.5 	(c) The commission shall make recommendations as it deems proper to assist the 
3.6 	legislature in formulating legislation.
3.7 	(d) Data or information compiled by the Legislative Water Commission or its 
3.8 	subcommittees shall be made available to the Legislative-Citizen Commission on Minnesota 
3.9 	Resources, the Clean Water Council, and standing and interim committees of the legislature 
3.10 	on request of the chair of the respective commission, council, or committee.
3.11 	(e) The commission shall coordinate with the Clean Water Council.

3.12 	Sec. 2. Minnesota Statutes 2016, section 4A.02, is amended to read:
3.13 	4A.02 STATE DEMOGRAPHER.
3.14 	(a) The commissioner shall appoint a state demographer. The demographer must be 
3.15 	professionally competent in demography and must possess demonstrated ability based upon 
3.16 	past performance.
3.17 	(b) The demographer shall:
3.18 	(1) continuously gather and develop demographic data relevant to the state;
3.19 	(2) design and test methods of research and data collection;
3.20 	(3) periodically prepare population projections for the state and designated regions and 
3.21 	periodically prepare projections for each county or other political subdivision of the state 
3.22 	as necessary to carry out the purposes of this section;
3.23 	(4) review, comment on, and prepare analysis of population estimates and projections 
3.24 	made by state agencies, political subdivisions, other states, federal agencies, or 
3.25 	nongovernmental persons, institutions, or commissions;
3.26 	(5) serve as the state liaison with the United States Bureau of the Census, coordinate 
3.27 	state and federal demographic activities to the fullest extent possible, and aid the legislature 
3.28 	in preparing a census data plan and form for each decennial census;
3.29 	(6) compile an annual study of population estimates on the basis of county, regional, or 
3.30 	other political or geographical subdivisions as necessary to carry out the purposes of this 
3.31 	section and section 4A.03;
4.1 	(7) by January 1 of each year, issue a report to the legislature containing an analysis of 
4.2 	the demographic implications of the annual population study and population projections;
4.3 	(8) prepare maps for all counties in the state, all municipalities with a population of 
4.4 	10,000 or more, and other municipalities as needed for census purposes, according to scale 
4.5 	and detail recommended by the United States Bureau of the Census, with the maps of cities 
4.6 	showing precinct boundaries;
4.7 	(9) prepare an estimate of population and of the number of households for each 
4.8 	governmental subdivision for which the Metropolitan Council does not prepare an annual 
4.9 	estimate, and convey the estimates to the governing body of each political subdivision by 
4.10 	June 1 of each year;
4.11 	(10) direct, under section 414.01, subdivision 14, and certify population and household 
4.12 	estimates of annexed or detached areas of municipalities or towns after being notified of 
4.13 	the order or letter of approval by the chief administrative law judge of the State Office of 
4.14 	Administrative Hearings;
4.15 	(11) prepare, for any purpose for which a population estimate is required by law or 
4.16 	needed to implement a law, a population estimate of a municipality or town whose population 
4.17 	is affected by action under section 379.02 or 414.01, subdivision 14; and
4.18 	(12) prepare an estimate of average household size for each statutory or home rule charter 
4.19 	city with a population of 2,500 or more by June 1 of each year.
4.20 	(c) A governing body may challenge an estimate made under paragraph (b) by filing 
4.21 	their specific objections in writing with the state demographer by June 24. If the challenge 
4.22 	does not result in an acceptable estimate, the governing body may have a special census 
4.23 	conducted by the United States Bureau of the Census. The political subdivision must notify 
4.24 	the state demographer by July 1 of its intent to have the special census conducted. The 
4.25 	political subdivision must bear all costs of the special census. Results of the special census 
4.26 	must be received by the state demographer by the next April 15 to be used in that year's 
4.27 	June 1 estimate to the political subdivision under paragraph (b).
4.28 	(d) The state demographer shall certify the estimates of population and household size 
4.29 	to the commissioner of revenue by July 15 each year, including any estimates still under 
4.30 	objection.
4.31 	(e) The state demographer may contract for the development of data and research required 
4.32 	under this chapter, including, but not limited to, population estimates and projections, the 
4.33 	preparation of maps, and other estimates.

5.1 	Sec. 3. Minnesota Statutes 2016, section 6.80, subdivision 3, is amended to read:
5.2 		Subd. 3.Review process. (a) Upon receipt of an application from a local government 
5.3 	unit, the state auditor shall review the application. The state auditor shall dismiss an 
5.4 	application if the application proposes a waiver of rules or exemption from enforcement of 
5.5 	laws that would result in due process violations, violations of federal law or the state or 
5.6 	federal constitution, or the loss of services to people who are entitled to them.
5.7 	(b) The state auditor shall determine whether a law from which an exemption for 
5.8 	enforcement is sought is a procedural law, specifying how a local government unit is to 
5.9 	achieve an outcome, rather than a substantive law prescribing the outcome or otherwise 
5.10 	establishing policy. For the purposes of this section, "procedural law" does not include a 
5.11 	statutory notice requirement. In making the determination, the state auditor shall consider 
5.12 	whether the law specifies such requirements as:
5.13 	(1) who must deliver a service;
5.14 	(2) where the service must be delivered;
5.15 	(3) to whom and in what form reports regarding the service must be made; and
5.16 	(4) how long or how often the service must be made available to a given recipient.
5.17 	(c) If the application requests a waiver of a rule or temporary, limited exemptions from 
5.18 	enforcement of a procedural law over which the Metropolitan Council or a metropolitan 
5.19 	agency has jurisdiction, the state auditor shall also transmit a copy of the application to the 
5.20 	council or applicable metropolitan agency, whichever has jurisdiction, for review and 
5.21 	comment. The council or agency shall report its comments to the board within 60 days of 
5.22 	the date the application was transmitted to the council or agency. The council or agency 
5.23 	may point out any resources or technical assistance it may be able to provide a local 
5.24 	government unit submitting a request under this section.
5.25 	(d) Within 15 days after receipt of the application, the state auditor shall transmit a copy 
5.26 	of it to the commissioner of each agency having jurisdiction over a rule or law from which 
5.27 	a waiver or exemption is sought. The agency may mail a notice that it has received an 
5.28 	application for a waiver or exemption to all persons who have registered with the agency 
5.29 	under section 14.14, subdivision 1a, identifying the rule or law from which a waiver or 
5.30 	exemption is requested. If no agency has jurisdiction over the rule or law, the state auditor 
5.31 	shall transmit a copy of the application to the attorney general. The agency shall inform the 
5.32 	state auditor of its agreement with or objection to and grounds for objection to the waiver 
5.33 	or exemption request within 60 days of the date when the application was transmitted to it. 
6.1 	An agency's failure to do so is considered agreement to the waiver or exemption. The state 
6.2 	auditor shall decide whether to grant a waiver or exemption at the end of the 60-day response 
6.3 	period. Interested persons may submit written comments to the state auditor on the waiver 
6.4 	or exemption request up to the end of the 60-day response period.
6.5 	(e) If the exclusive representative of the affected employees of the requesting local 
6.6 	government unit objects to the waiver or exemption request it may inform the state auditor 
6.7 	of the objection to and the grounds for the objection to the waiver or exemption request 
6.8 	within 60 days of the receipt of the application.

6.9 	Sec. 4. Minnesota Statutes 2016, section 10.60, subdivision 1, is amended to read:
6.10 		Subdivision 1.Definitions. For purposes of this section:
6.11 	(1) "political subdivision" means a county, statutory or home rule charter city, town, 
6.12 	school district, or other municipal corporation, and the Metropolitan Council and a 
6.13 	metropolitan or regional agency;
6.14 	(2) "publication" means a document printed with public money by an elected or appointed 
6.15 	official of a state agency or political subdivision that is intended to be distributed publicly 
6.16 	outside of the state agency or political subdivision;
6.17 	(3) "state agency" means an entity in the executive, judicial, or legislative branch of 
6.18 	state government; and
6.19 	(4) "Web site" means a site maintained on the World Wide Web that is available for 
6.20 	unrestricted public access and that is maintained with public money by an elected or 
6.21 	appointed official of a state agency or political subdivision.

6.22 	Sec. 5. Minnesota Statutes 2016, section 10A.01, subdivision 24, is amended to read:
6.23 		Subd. 24.Metropolitan governmental unit. "Metropolitan governmental unit" means 
6.24 	any of the seven counties in the metropolitan area as defined in section 473.121, subdivision 
6.25 	2, a regional railroad authority established by one or more of those counties under section 
6.26 	398A.03, a city with a population of over 50,000 located in the seven-county metropolitan 
6.27 	area, the Metropolitan Council, or a metropolitan agency as defined in section 473.121, 
6.28 	subdivision 5a.

7.1 	Sec. 6. Minnesota Statutes 2016, section 10A.01, subdivision 31, is amended to read:
7.2 		Subd. 31.Political subdivision. "Political subdivision" means the Metropolitan Council,
7.3 	a metropolitan agency as defined in section 473.121, subdivision 5a, or a municipality as 
7.4 	defined in section 471.345, subdivision 1.

7.5 	Sec. 7. Minnesota Statutes 2016, section 10A.01, subdivision 32, is amended to read:
7.6 		Subd. 32.Population. "Population" means the population established by the most recent 
7.7 	federal census, by a special census taken by the United States Bureau of the Census, by an 
7.8 	estimate made by the Metropolitan Council, or by an estimate made by the state demographer 
7.9 	under section 4A.02, whichever has the latest stated date of count or estimate.

7.10 	Sec. 8. Minnesota Statutes 2016, section 10A.01, subdivision 35, is amended to read:
7.11 		Subd. 35.Public official. "Public official" means any:
7.12 	(1) member of the legislature;
7.13 	(2) individual employed by the legislature as secretary of the senate, legislative auditor, 
7.14 	chief clerk of the house of representatives, revisor of statutes, or researcher, legislative 
7.15 	analyst, fiscal analyst, or attorney in the Office of Senate Counsel, Research, and Fiscal 
7.16 	Analysis, House Research, or the House Fiscal Analysis Department;
7.17 	(3) constitutional officer in the executive branch and the officer's chief administrative 
7.18 	deputy;
7.19 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
7.20 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
7.21 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
7.22 	officer;
7.23 	(6) member, chief administrative officer, or deputy chief administrative officer of a state 
7.24 	board or commission that has either the power to adopt, amend, or repeal rules under chapter 
7.25 	14, or the power to adjudicate contested cases or appeals under chapter 14;
7.26 	(7) individual employed in the executive branch who is authorized to adopt, amend, or 
7.27 	repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
7.28 	(8) executive director of the State Board of Investment;
7.29 	(9) deputy of any official listed in clauses (7) and (8);
7.30 	(10) judge of the Workers' Compensation Court of Appeals;
8.1 	(11) administrative law judge or compensation judge in the State Office of Administrative 
8.2 	Hearings or unemployment law judge in the Department of Employment and Economic 
8.3 	Development;
8.4 	(12) member, regional administrator, division director, general counsel, or operations 
8.5 	manager of the Metropolitan Council;
8.6 	(13)(12) member or chief administrator of a metropolitan agency;
8.7 	(14)(13) director of the Division of Alcohol and Gambling Enforcement in the 
8.8 	Department of Public Safety;
8.9 	(15)(14) member or executive director of the Higher Education Facilities Authority;
8.10 	(16)(15) member of the board of directors or president of Enterprise Minnesota, Inc.;
8.11 	(17)(16) member of the board of directors or executive director of the Minnesota State 
8.12 	High School League;
8.13 	(18)(17) member of the Minnesota Ballpark Authority established in section 473.755;
8.14 	(19)(18) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
8.15 	(20)(19) manager of a watershed district, or member of a watershed management 
8.16 	organization as defined under section 103B.205, subdivision 13;
8.17 	(21)(20) supervisor of a soil and water conservation district;
8.18 	(22)(21) director of Explore Minnesota Tourism;
8.19 	(23)(22) citizen member of the Lessard-Sams Outdoor Heritage Council established in 
8.20 	section 97A.056;
8.21 	(24)(23) citizen member of the Clean Water Council established in section 114D.30;
8.22 	(25)(24) member or chief executive of the Minnesota Sports Facilities Authority 
8.23 	established in section 473J.07;
8.24 	(26)(25) district court judge, appeals court judge, or Supreme Court justice;
8.25 	(27)(26) county commissioner;
8.26 	(28)(27) member of the Greater Minnesota Regional Parks and Trails Commission; or
8.27 	(29)(28) member of the Destination Medical Center Corporation established in section 
8.28 	469.41.

9.1 	Sec. 9. Minnesota Statutes 2016, section 13.201, is amended to read:
9.2 	13.201 RIDESHARE DATA.
9.3 	The following data on participants, collected by the Minnesota Department of 
9.4 	Transportation and the Metropolitan Council to administer rideshare programs, are classified 
9.5 	as private under section 13.02, subdivision 12: residential address and telephone number; 
9.6 	beginning and ending work hours; current mode of commuting to and from work; and type 
9.7 	of rideshare service information requested.

9.8 	Sec. 10. Minnesota Statutes 2016, section 13.685, is amended to read:
9.9 	13.685 MUNICIPAL UTILITY CUSTOMER DATA.
9.10 	Data on customers of municipal electric utilities are private data on individuals or 
9.11 	nonpublic data, but may be released to:
9.12 	(1) a law enforcement agency that requests access to the data in connection with an 
9.13 	investigation;
9.14 	(2) a school for purposes of compiling pupil census data;
9.15 	(3) the Metropolitan Council for use in studies or analyses required by law;
9.16 	(4)(3) a public child support authority for purposes of establishing or enforcing child 
9.17 	support; or
9.18 	(5)(4) a person where use of the data directly advances the general welfare, health, or 
9.19 	safety of the public; the commissioner of administration may issue advisory opinions 
9.20 	construing this clause pursuant to section 13.072.

9.21 	Sec. 11. Minnesota Statutes 2016, section 13.72, subdivision 9, is amended to read:
9.22 		Subd. 9.Rideshare data. The following data on participants, collected by the Minnesota 
9.23 	Department of Transportation and the Metropolitan Council to administer rideshare programs, 
9.24 	are classified as private under section 13.02, subdivision 12: residential address and telephone 
9.25 	number; beginning and ending work hours; current mode of commuting to and from work; 
9.26 	and type of rideshare service information requested.

9.27 	Sec. 12. Minnesota Statutes 2016, section 15.0597, subdivision 1, is amended to read:
9.28 		Subdivision 1.Definitions. As used in this section, the following terms shall have the 
9.29 	meanings given them.
10.1 	(a) "Agency" means (1) a state board, commission, council, committee, authority, task 
10.2 	force, including an advisory task force created under section 15.014 or 15.0593, a group 
10.3 	created by executive order of the governor, or other similar multimember agency created 
10.4 	by law and having statewide jurisdiction; and (2) the Metropolitan Council,a metropolitan 
10.5 	agency, Capitol Area Architectural and Planning Board, and any agency with a regional 
10.6 	jurisdiction created in this state pursuant to an interstate compact.
10.7 	(b) "Vacancy" or "vacant agency position" means (1) a vacancy in an existing agency, 
10.8 	or (2) a new, unfilled agency position. Vacancy includes a position that is to be filled through 
10.9 	appointment of a nonlegislator by a legislator or group of legislators; vacancy does not mean 
10.10 	(1) a vacant position on an agency composed exclusively of persons employed by a political 
10.11 	subdivision or another agency, or (2) a vacancy to be filled by a person required to have a 
10.12 	specific title or position.
10.13 	(c) "Secretary" means the secretary of state.

10.14 	Sec. 13. Minnesota Statutes 2016, section 15.0599, subdivision 1, is amended to read:
10.15 		Subdivision 1.Applicability. For purposes of this section, "agency" means:
10.16 	(1) a state board, commission, council, committee, authority, task force, including an 
10.17 	advisory task force established under section 15.014 or 15.0593, other multimember agency, 
10.18 	however designated, established by statute or order and having statewide jurisdiction;
10.19 	(2) the Metropolitan Council established by section 473.123, a metropolitan agency as 
10.20 	defined in section 473.121, subdivision 5a, or a multimember body, however designated, 
10.21 	appointed by the Metropolitan Council or a metropolitan agency if the membership includes 
10.22 	at least one person who is not a member of the council or the agency;
10.23 	(3) a multimember body whose members are appointed by the legislature if the body 
10.24 	has at least one nonlegislative member; and
10.25 	(4) any other multimember body established by law with at least one appointed member, 
10.26 	without regard to the appointing authority.
10.27 	"Secretary" means the secretary of state.

10.28 	Sec. 14. Minnesota Statutes 2016, section 15A.0815, subdivision 3, is amended to read:
10.29 		Subd. 3.Group II salary limits. The salary for a position listed in this subdivision shall 
10.30 	not exceed 120 percent of the salary of the governor. This limit must be adjusted annually 
10.31 	on January 1. The new limit must equal the limit for the prior year increased by the percentage 
11.1 	increase, if any, in the Consumer Price Index for all urban consumers from October of the 
11.2 	second prior year to October of the immediately prior year. The commissioner of management 
11.3 	and budget must publish the limit on the department's Web site. This subdivision applies 
11.4 	to the following positions:
11.5 	Executive director of Gambling Control Board;
11.6 	Commissioner, Iron Range Resources and Rehabilitation Board;
11.7 	Commissioner, Bureau of Mediation Services;
11.8 	Ombudsman for Mental Health and Developmental Disabilities;
11.9 	Chair, Metropolitan Council;
11.10 	School trust lands director;
11.11 	Executive director of pari-mutuel racing; and
11.12 	Commissioner, Public Utilities Commission.

11.13 	Sec. 15. Minnesota Statutes 2016, section 15B.11, subdivision 3, is amended to read:
11.14 		Subd. 3.Data classification and use. (a) The advisory committee's comments and 
11.15 	criticism under subdivision 1 are public data under section 13.03, subdivision 1.
11.16 	(b) To advise the board on all architectural and planning matters, the advisory committee 
11.17 	must be kept current about, and have access to, all data relating to the Capitol Area as the 
11.18 	data is developed or being prepared. Some examples of these types of data are plans, studies, 
11.19 	reports, and proposals.
11.20 	(c) The obligation under paragraph (b) extends to data developed or being prepared by 
11.21 	(1) the commissioner of administration; (2) the commissioner of employment and economic 
11.22 	development; (3) the Metropolitan Council; (4) the city of St. Paul; or (5)(4) one who is 
11.23 	an architect, planner, agency, or organization and who is engaged in any work or planning 
11.24 	relating to the Capitol Area.
11.25 	(d) Paragraph (c), clause (5) (4), applies to all the developers or preparers whether they 
11.26 	are public or private and whether or not they are retained by the board.
11.27 	(e) If the data described in paragraph (b) is from a public employee or public agency it 
11.28 	must be filed with the board promptly after it is prepared.
11.29 	(f) The board may employ a reasonable amount of clerical and technical help to assist 
11.30 	the committee to do its duties.
12.1 	(g) When directed by the board, the advisory committee may serve as, or any of its 
12.2 	members may serve on, the jury for a competition or as the architectural advisor for a 
12.3 	competition under section 15B.10.
12.4 	(h) The board must get the advice of its advisory committee before selecting the 
12.5 	architectural advisor or jurors for a competition.

12.6 	Sec. 16. Minnesota Statutes 2016, section 16A.88, subdivision 2, is amended to read:
12.7 		Subd. 2.Metropolitan area transit account. The metropolitan area transit account is 
12.8 	established within the transit assistance fund in the state treasury. All money in the account 
12.9 	is annually appropriated to the Metropolitan Councilcommissioner of transportation for 
12.10 	the funding of transit systems within the metropolitan area under sections 473.384, 473.386,
12.11 	473.387, 473.388, and 473.405 to 473.449.

12.12 	Sec. 17. Minnesota Statutes 2016, section 16C.073, subdivision 1, is amended to read:
12.13 		Subdivision 1.Definitions. The definitions in this subdivision apply to this section.
12.14 	(a) "Copier paper" means paper purchased for use in copying machines.
12.15 	(b) "Office paper" means notepads, loose-leaf fillers, tablets, and other paper commonly 
12.16 	used in offices.
12.17 	(c) "Postconsumer material" means a finished material that would normally be discarded 
12.18 	as a solid waste, having completed its life cycle as a consumer item.
12.19 	(d) "Practicable" means capable of being used, consistent with performance, in accordance 
12.20 	with applicable specifications, and availability within a reasonable time.
12.21 	(e) "Printing paper" means paper designed for printing, other than newsprint, such as 
12.22 	offset and publication paper.
12.23 	(f) "Public entity" means the state, an office, agency, or institution of the state, the 
12.24 	Metropolitan Council, a metropolitan agency, the Metropolitan Mosquito Control District, 
12.25 	the legislature, the courts, a county, a statutory or home rule charter city, a town, a school 
12.26 	district, another special taxing district, or any contractor acting pursuant to a contract with 
12.27 	a public entity.
12.28 	(g) "Soy-based ink" means printing ink made from soy oil.
12.29 	(h) "Uncoated" means not coated with plastic, clay, or other material used to create a 
12.30 	glossy finish.

13.1 	Sec. 18. Minnesota Statutes 2016, section 16C.285, subdivision 1, is amended to read:
13.2 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
13.3 	subdivision have the meanings given them.
13.4 	(b) "Construction contract" means a contract or subcontract of any tier for work on a 
13.5 	project.
13.6 	(c) "Contractor" means a prime contractor or subcontractor or motor carrier, and does 
13.7 	not include a design professional or a material supplier. A "design professional" is a business 
13.8 	or natural person retained to perform services on the project for which licensure is required 
13.9 	by section 326.02. A "material supplier" is a business or natural person that supplies 
13.10 	materials, equipment, or supplies to a subcontractor or contractor on a project, including 
13.11 	performing delivery or unloading services in connection with the supply of materials, 
13.12 	equipment, or supplies; provided, however, that a material supplier does not include a natural 
13.13 	person or business that delivers mineral aggregate such as sand, gravel, or stone that is 
13.14 	incorporated into the work under the contract by depositing the material substantially in 
13.15 	place, directly or through spreaders, from the transporting vehicle.
13.16 	(d) "Contracting authority" means a state agency, the Minnesota State Colleges and 
13.17 	Universities, the University of Minnesota, the Metropolitan Council, the Metropolitan 
13.18 	Airports Commission, or a municipality that enters into a construction contract or authorizes 
13.19 	or directs entering into a construction contract.
13.20 	(e) "Motor carrier" means a business or natural person providing for-hire transportation 
13.21 	of materials, equipment, or supplies for a project.
13.22 	(f) "Municipality" means a county, town, home rule charter or statutory city, school 
13.23 	district, housing and redevelopment authority, port authority, economic development 
13.24 	authority, sports facilities authority, joint powers board or organization created under section 
13.25 	471.59 or other statute, special district, instrumentality, drainage authority, watershed district, 
13.26 	destination medical center corporation, or other municipal corporation or political subdivision 
13.27 	of the state authorized by law to enter into contracts.
13.28 	(g) "Prime contractor" means a vendor that submits a bid or proposal or otherwise 
13.29 	responds to a solicitation document of a contracting authority for work on a project or is 
13.30 	awarded a construction contract by a contracting authority for work on a project. A prime 
13.31 	contractor includes a construction manager for purposes of this section.
13.32 	(h) "Principal" means an owner holding at least a 25 percent ownership interest in a 
13.33 	business.
14.1 	(i) "Project" means building, erection, construction, alteration, remodeling, demolition, 
14.2 	or repair of buildings, real property, highways, roads, bridges, or other construction work 
14.3 	performed pursuant to a construction contract.
14.4 	(j) "Related entity" means:
14.5 	(1) a firm, partnership, corporation, joint venture, or other legal entity substantially under 
14.6 	the control of a contractor or vendor;
14.7 	(2) a predecessor corporation or other legal entity having one or more of the same 
14.8 	principals as the contractor or vendor;
14.9 	(3) a subsidiary of a contractor or vendor;
14.10 	(4) one or more principals of a contractor or vendor; and
14.11 	(5) a person, firm, partnership, corporation, joint venture, or other legal entity that 
14.12 	substantially controls a contractor or vendor.
14.13 	(k) "Solicitation document" means an invitation to bid, bid specifications, request for 
14.14 	proposals, request for qualifications, or other solicitation of contractors for purposes of a 
14.15 	construction contract.
14.16 	(l) "Subcontractor" means a vendor that seeks to enter into a subcontract or enters into 
14.17 	a subcontract for work on a project.
14.18 	(m) "Vendor" means a business, including a construction contractor or a natural person, 
14.19 	and includes both if the natural person is engaged in a business.

14.20 	Sec. 19. Minnesota Statutes 2016, section 43A.346, subdivision 1, is amended to read:
14.21 		Subdivision 1.Definition. For purposes of this section, "terminated state employee" 
14.22 	means a person who occupied a civil service position in the executive or legislative branch 
14.23 	of state government, the Minnesota State Retirement System, the Public Employees 
14.24 	Retirement Association, the Office of the Legislative Auditor, or a person who was employed 
14.25 	by the former Metropolitan Council.

14.26 	Sec. 20. Minnesota Statutes 2016, section 43A.346, subdivision 2, is amended to read:
14.27 		Subd. 2.Eligibility. (a) This section applies to a terminated state employee who:
14.28 	(1) for at least the five years immediately preceding separation under clause (2), was 
14.29 	regularly scheduled to work 1,044 or more hours per year in a position covered by a pension 
15.1 	plan administered by the Minnesota State Retirement System or the Public Employees 
15.2 	Retirement Association;
15.3 	(2) terminated state or former Metropolitan Council employment;
15.4 	(3) at the time of termination under clause (2), met the age and service requirements 
15.5 	necessary to receive an unreduced retirement annuity from the plan and satisfied requirements 
15.6 	for the commencement of the retirement annuity or, for a terminated employee under the 
15.7 	unclassified employees retirement plan, met the age and service requirements necessary to 
15.8 	receive an unreduced retirement annuity from the plan and satisfied requirements for the 
15.9 	commencement of the retirement annuity or elected a lump-sum payment; and
15.10 	(4) agrees to accept a postretirement option position with the same or a different 
15.11 	appointing authority, working a reduced schedule that is both (i) a reduction of at least 25 
15.12 	percent from the employee's number of previously regularly scheduled work hours; and (ii) 
15.13 	1,044 hours or less in state or former Metropolitan Council service.
15.14 	(b) For purposes of this section, an unreduced retirement annuity includes a retirement 
15.15 	annuity computed under a provision of law which permits retirement, without application 
15.16 	of an earlier retirement reduction factor, whenever age plus years of allowable service total 
15.17 	at least 90.
15.18 	(c) For purposes of this section, as it applies to state employees who are members of the 
15.19 	Public Employees Retirement Association who are at least age 62, the length of separation 
15.20 	requirement and termination of service requirement prohibiting return to work agreements 
15.21 	under section 353.01, subdivisions 11a and 28, are not applicable.

15.22 	Sec. 21. Minnesota Statutes 2016, section 47.52, is amended to read:
15.23 	47.52 AUTHORIZATION.
15.24 	(a) With the prior approval of the commissioner, any bank doing business in this state 
15.25 	may establish and maintain detached facilities provided the facilities are located within: (1) 
15.26 	the municipality in which the principal office of the applicant bank is located; or (2) 5,000 
15.27 	feet of its principal office measured in a straight line from the closest points of the closest 
15.28 	structures involved; or (3) a municipality in which no bank is located at the time of 
15.29 	application; or (4) a municipality having a population of more than 10,000; or (5) a 
15.30 	municipality having a population of 10,000 or less, as determined by the commissioner 
15.31 	from the latest available data from the state demographer, or for municipalities located in 
15.32 	the seven-county metropolitan area from the Metropolitan Council, and all the banks having 
16.1 	a principal office in the municipality have consented in writing to the establishment of the 
16.2 	facility.
16.3 	(b) A detached facility shall not be closer than 50 feet to a detached facility operated by 
16.4 	any other bank and shall not be closer than 100 feet to the principal office of any other bank, 
16.5 	the measurement to be made in the same manner as provided above. This paragraph shall 
16.6 	not be applicable if the proximity to the facility or the bank is waived in writing by the other 
16.7 	bank and filed with the application to establish a detached facility.
16.8 	(c) A bank is allowed, in addition to other facilities, part-time deposit-taking locations 
16.9 	at elementary and secondary schools located within the municipality in which the main 
16.10 	banking house or a detached facility is located if they are established in connection with 
16.11 	student education programs approved by the school administration and consistent with safe, 
16.12 	sound banking practices.
16.13 	(d) In addition to other facilities, a bank may operate part-time locations at nursing 
16.14 	homes and senior citizen housing facilities located within the municipality in which the 
16.15 	main banking house or a detached facility is located, or within the seven-county metropolitan 
16.16 	area if the bank's main banking facility or a detached facility is located within the 
16.17 	seven-county metropolitan area, if they are operated in a manner consistent with safe, sound 
16.18 	banking practices.

16.19 	Sec. 22. Minnesota Statutes 2016, section 65B.43, subdivision 20, is amended to read:
16.20 		Subd. 20.Political subdivision. "Political subdivision" means any statutory or home 
16.21 	rule charter city; county; town; school district; or metropolitan council, board or, commission, 
16.22 	or metropolitan agency operating under chapter 473.

16.23 	Sec. 23. Minnesota Statutes 2016, section 85.016, is amended to read:
16.24 	85.016 BICYCLE TRAIL PROGRAM.
16.25 	The commissioner of natural resources shall establish a program for the development 
16.26 	of bicycle trails utilizing the state trails authorized by section 85.015, other state parks and 
16.27 	recreation land, and state forests. "Bicycle trail," as used in this section, has the meaning 
16.28 	given in section 169.011. The program shall be coordinated with the local park trail grant 
16.29 	program established by the commissioner pursuant to section 85.019, with the bikeway 
16.30 	program established by the commissioner of transportation pursuant to section 160.265, 
16.31 	and with existing and proposed local bikeways. In the metropolitan area as defined in section 
16.32 	473.121, the program shall be developed in accordance with plans and priorities established 
17.1 	by the Metropolitan Council. The commissioner shall provide technical assistance to local 
17.2 	units of government in planning and developing bicycle trails in local parks. The bicycle 
17.3 	trail program shall, as a minimum, describe the location, design, construction, maintenance, 
17.4 	and land acquisition needs of each component trail and shall give due consideration to the 
17.5 	model standards for the establishment of recreational vehicle lanes promulgated by the 
17.6 	commissioner of transportation pursuant to section 160.262. The program shall be developed 
17.7 	after consultation with the state trail council and regional and local units of government and 
17.8 	bicyclist organizations.

17.9 	Sec. 24. Minnesota Statutes 2016, section 85.017, is amended to read:
17.10 	85.017 TRAIL REGISTRY.
17.11 	The commissioner of natural resources shall compile and maintain a current registry of 
17.12 	cross-country skiing, hiking, horseback riding and snowmobiling trails in the state and shall 
17.13 	publish and distribute the information in the manner prescribed in section 86A.11. The 
17.14 	Metropolitan Council, the commissioner of employment and economic development, the 
17.15 	Minnesota Historical Society, and local units of government shall cooperate with and assist 
17.16 	the commissioner in preparing the registry.

17.17 	Sec. 25. Minnesota Statutes 2016, section 85.53, subdivision 3, is amended to read:
17.18 		Subd. 3.Metropolitan area distribution formula. Money appropriated from the parks 
17.19 	and trails fund to the Metropolitan Councilcommissioner of natural resources for 
17.20 	metropolitan area parks and trails shall be distributed to implementing agencies, as defined 
17.21 	in section 473.351, subdivision 1, paragraph (a), as grants according to the following formula:
17.22 	(1) 45 percent of the money must be disbursed according to the allocation formula in 
17.23 	section 473.351, subdivision 3, to each implementing agency;
17.24 	(2) 31.5 percent of the money must be distributed based on each implementing agency's 
17.25 	relative share of the most recent estimate of the population of the metropolitan area;
17.26 	(3) 13.5 percent of the money must be distributed based on each implementing agency's 
17.27 	relative share of nonlocal visits based on the most recent user visitation survey conducted 
17.28 	by the Metropolitan Council Parks and Open Space Commission; and
17.29 	(4) ten percent of the money must be distributed as grants to implementing agencies for 
17.30 	land acquisition within Metropolitan CouncilParks and Open Space Commission approved 
17.31 	regional parks and trails master plan boundaries under the council's commissioner's park 
17.32 	acquisition opportunity grant program. The Metropolitan Council commission must provide 
18.1 	a match of $2 of the council'scommission's park bonds for every $3 of state funds for the 
18.2 	park acquisition opportunity grant program.

18.3 	Sec. 26. Minnesota Statutes 2016, section 103B.155, is amended to read:
18.4 	103B.155 STATE WATER AND RELATED LAND RESOURCE PLAN.
18.5 	The commissioner of natural resources, in cooperation with other state and federal 
18.6 	agencies, regional development commissions, the Metropolitan Council, local governmental 
18.7 	units, and citizens, shall prepare a statewide framework and assessment water and related 
18.8 	land resources plan for presentation to the legislature by November 15, 1975, for its review 
18.9 	and approval or disapproval. This plan must relate each of the programs of the Department 
18.10 	of Natural Resources for specific aspects of water management to the others. The statewide 
18.11 	plan must include:
18.12 	(1) regulation of improvements and land development by abutting landowners of the 
18.13 	beds, banks, and shores of lakes, streams, watercourses, and marshes by permit or otherwise 
18.14 	to preserve them for beneficial use;
18.15 	(2) regulation of construction of improvements on and prevention of encroachments in 
18.16 	the floodplains of the rivers, streams, lakes, and marshes of the state;
18.17 	(3) reclamation or filling of wet and overflowed lands;
18.18 	(4) repair, improvement, relocation, modification or consolidation in whole or in part 
18.19 	of previously established public drainage systems within the state;
18.20 	(5) preservation of wetland areas;
18.21 	(6) management of game and fish resources as related to water resources;
18.22 	(7) control of water weeds;
18.23 	(8) control or alleviation of damages by flood waters;
18.24 	(9) alteration of stream channels for conveyance of surface waters, navigation, and any 
18.25 	other public purposes;
18.26 	(10) diversion or changing of watercourses in whole or in part;
18.27 	(11) regulation of the flow of streams and conservation of their waters;
18.28 	(12) regulation of lake water levels;
18.29 	(13) maintenance of water supply for municipal, domestic, industrial, recreational, 
18.30 	agricultural, aesthetic, wildlife, fishery, or other public use;
19.1 	(14) sanitation and public health and regulation of uses of streams, ditches, or 
19.2 	watercourses to dispose of waste and maintain water quality;
19.3 	(15) preventive or remedial measures to control or alleviate land and soil erosion and 
19.4 	siltation of affected watercourses or bodies of water;
19.5 	(16) regulation of uses of water surfaces; and
19.6 	(17) identification of high priority regions for wetland preservation, enhancement, 
19.7 	restoration, and establishment.

19.8 	Sec. 27. Minnesota Statutes 2016, section 103B.231, subdivision 3a, is amended to read:
19.9 		Subd. 3a.Priority schedule. (a) The Board of Water and Soil Resources in consultation 
19.10 	with the state review agencies and the Metropolitan Council may develop a priority schedule 
19.11 	for the revision of plans required under this chapter.
19.12 	(b) The prioritization should be based on but not be limited to status of current plan, 
19.13 	scheduled revision dates, anticipated growth and development, existing and potential 
19.14 	problems, and regional water quality goals and priorities.
19.15 	(c) The schedule will be used by the Board of Water and Soil Resources in consultation 
19.16 	with the state review agencies and the Metropolitan Council to direct watershed management 
19.17 	organizations of when they will be required to revise their plans.
19.18 	(d) In the event that a plan expires prior to notification from the Board of Water and 
19.19 	Soil Resources under this section, the existing plan, authorities, and official controls of a 
19.20 	watershed management organization shall remain in full force and effect until a revision is 
19.21 	approved.
19.22 	(e) Watershed management organizations submitting plans and draft plan amendments 
19.23 	for review prior to the board's priority review schedule, may proceed to adopt and implement 
19.24 	the plan revisions without formal board approval if the board fails to adjust its priority 
19.25 	review schedule for plan review, and commence its statutory review process within 45 days 
19.26 	of submittal of the plan revision or amendment.

19.27 	Sec. 28. Minnesota Statutes 2016, section 103B.231, subdivision 7, is amended to read:
19.28 		Subd. 7.Review of draft plan. (a) Upon completion of the plan but before final adoption 
19.29 	by the organization, the organization must submit the draft plan for a 60-day review and 
19.30 	comment period to all counties, the Metropolitan Council, the state review agencies, the 
19.31 	Board of Water and Soil Resources, soil and water conservation districts, towns, and statutory 
20.1 	and home rule charter cities having territory within the watershed. A local government unit 
20.2 	that expects that substantial amendment of its local comprehensive plan will be necessary 
20.3 	to bring local water management into conformance with the watershed plan must describe 
20.4 	as specifically as possible, within its comments, the amendments to the local plan that it 
20.5 	expects will be necessary. If the county has a groundwater plan, the county must review 
20.6 	and comment on the consistency of the watershed plan with the county groundwater plan. 
20.7 	Differences among local governmental agencies regarding the plan must be mediated. 
20.8 	Notwithstanding sections 103D.401, 103D.405, and 473.165, the council shall review the 
20.9 	plan in the same manner and with the same authority and effect as provided for the council's 
20.10 	review of the comprehensive plans of local government units under section 473.175. The 
20.11 	council shall comment on the apparent conformity with metropolitan system plans of any 
20.12 	anticipated amendments to local comprehensive plans. The council shall advise the Board 
20.13 	of Water and Soil Resources on whether the plan conforms with the management objectives 
20.14 	and target pollution loads stated in the council's water resources plan and shall recommend 
20.15 	changes in the plan that would satisfy the council's plan.
20.16 	(b) The watershed management organization must respond in writing to any concerns 
20.17 	expressed by the review agencies at least ten days before the public hearing.
20.18 	(c) The watershed management organization must hold a public hearing on the draft 
20.19 	plan no sooner than 14 days after the 60-day review period of the draft plan. The board or 
20.20 	boards of the affected counties shall approve or disapprove projects in the capital 
20.21 	improvement program which may require the provision of county funds pursuant to section 
20.22 	103B.251 or 103D.901, subdivision 2. Each county has up until the date of the public hearing 
20.23 	on the draft plan to complete its review of the capital improvement program. If the county 
20.24 	fails to complete its review within the prescribed period, unless an extension is agreed to 
20.25 	by the organization the program shall be deemed approved. If the watershed extends into 
20.26 	more than one county and one or more counties disapprove of all or part of a capital 
20.27 	improvement program while the other county or counties approve, the program shall be 
20.28 	submitted to the Board of Water and Soil Resources for review pursuant to subdivision 9.

20.29 	Sec. 29. Minnesota Statutes 2016, section 103B.231, subdivision 9, is amended to read:
20.30 		Subd. 9.Approval by board. After completion of the review under subdivision 7, the 
20.31 	draft plan, any amendments thereto, all written comments received on the draft plan, a record 
20.32 	of the public hearing, and a summary of changes incorporated as a result of the review 
20.33 	process shall be submitted to the Metropolitan Council, the state review agencies, and the 
20.34 	Board of Water and Soil Resources for final review. The board shall review the plan for 
21.1 	conformance with the requirements of sections 103B.205 to 103B.255, and chapter 103D. 
21.2 	The board shall not prescribe a plan, but may disapprove all or parts of a plan which it 
21.3 	determines is not in conformance with the requirements of sections 103B.205 to 103B.255, 
21.4 	and chapter 103D. If the capital improvement program is the subject of a dispute between 
21.5 	counties, the Board of Water and Soil Resources shall make a final decision on the issue. 
21.6 	The decision shall be binding on the organization and the counties involved. The board shall 
21.7 	complete its review under this section within 90 days.

21.8 	Sec. 30. Minnesota Statutes 2016, section 103B.231, subdivision 11, is amended to read:
21.9 		Subd. 11.Amendments. To the extent and in the manner required by the adopted plan, 
21.10 	all amendments to the adopted plan shall be submitted to the towns, cities, county, the 
21.11 	Metropolitan Council, the state review agencies, and the Board of Water and Soil Resources 
21.12 	for review in accordance with the provisions of subdivisions 7 and 9. Amendments necessary 
21.13 	to revise the plan to be consistent with the county groundwater plan, as required by 
21.14 	subdivision 4, must be submitted for review in accordance with subdivisions 7 and 9. Minor 
21.15 	amendments to a plan shall be reviewed in accordance with standards prescribed in the 
21.16 	watershed management plan.

21.17 	Sec. 31. Minnesota Statutes 2016, section 103B.235, subdivision 3, is amended to read:
21.18 		Subd. 3.Review. After consideration but before adoption by the governing body, each 
21.19 	local unit shall submit its water management plan to the watershed management organization 
21.20 	for review for consistency with the watershed plan adopted pursuant to section 103B.231. 
21.21 	If the county or counties having territory within the local unit have a state-approved and 
21.22 	locally adopted groundwater plan, the local unit shall submit its plan to the county or counties 
21.23 	for review. The county or counties have 45 days to review and comment on the plan. The 
21.24 	organization shall approve or disapprove the local plan or parts of the plan. The organization 
21.25 	shall have 60 days to complete its review; provided, however, that the watershed management 
21.26 	organization shall, as part of its review, take into account the comments submitted to it by 
21.27 	the Metropolitan Council pursuant to subdivision 3a. If the organization fails to complete 
21.28 	its review within the prescribed period, the local plan shall be deemed approved unless an 
21.29 	extension is agreed to by the local unit.

21.30 	Sec. 32. Minnesota Statutes 2016, section 103B.255, subdivision 8, is amended to read:
21.31 		Subd. 8.Review of the draft plan. (a) Upon completion of the groundwater plan but 
21.32 	before final adoption by the county, the county shall submit the draft plan for a 60-day 
21.33 	review and comment period to adjoining counties, the Metropolitan Council, the state review 
22.1 	agencies, the Board of Water and Soil Resources, each soil and water conservation district, 
22.2 	town, statutory and home rule charter city, and watershed management organization having 
22.3 	territory within the county. The county also shall submit the plan to any other county or 
22.4 	watershed management organization or district in the affected groundwater system that 
22.5 	could affect or be affected by implementation of the plan. Any political subdivision or 
22.6 	watershed management organization that expects that substantial amendment of its plans 
22.7 	would be necessary in order to bring them into conformance with the county groundwater 
22.8 	plan shall describe as specifically as possible, within its comments, the amendments that it 
22.9 	expects would be necessary and the cost of amendment and implementation. Reviewing 
22.10 	entities have 60 days to review and comment. Differences among local governmental 
22.11 	agencies regarding the plan must be mediated. Notwithstanding sections 103D.401, 
22.12 	103D.405, and 473.165, the council shall review the plan in the same manner and with the 
22.13 	same authority and effect as provided in section 473.175 for review of the comprehensive 
22.14 	plans of local government units. The council shall comment on the apparent conformity 
22.15 	with metropolitan system plans of any anticipated amendments to watershed plans and local 
22.16 	comprehensive plans. The council shall advise the Board of Water and Soil Resources on 
22.17 	whether the plan conforms with the management objectives stated in the council's water 
22.18 	resources plan and shall recommend changes in the plan that would satisfy the council's 
22.19 	plan.
22.20 	(b) The county must respond in writing to any concerns expressed by the reviewing 
22.21 	agencies within 30 days of receipt thereof.
22.22 	(c) The county shall hold a public hearing on the draft plan no sooner than 30 days and 
22.23 	no later than 45 days after the 60-day review period of the draft plan.

22.24 	Sec. 33. Minnesota Statutes 2016, section 103B.255, subdivision 9, is amended to read:
22.25 		Subd. 9.Review by Metropolitan Council and state agencies. After completion of 
22.26 	the review under subdivision 8, the draft plan, any amendments thereto, all written comments 
22.27 	received on the plan, a record of the public hearing, and a summary of changes incorporated 
22.28 	as part of the review process must be submitted to the Metropolitan Council, the state review 
22.29 	agencies, and the Board of Water and Soil Resources for final review. The state review 
22.30 	agencies shall review and comment on the consistency of the plan with state laws and rules 
22.31 	relating to water and related land resources. The state review agencies shall forward their 
22.32 	comments to the board within 45 days after they receive the final review draft of the plan. 
22.33 	A state review agency may request and receive up to a 30-day extension of this review 
22.34 	period from the board.

23.1 	Sec. 34. Minnesota Statutes 2016, section 103B.255, subdivision 12, is amended to read:
23.2 		Subd. 12.Amendments. To the extent and in the manner required by the adopted plan, 
23.3 	all amendments to the adopted plan must be submitted to the towns, cities, counties, the 
23.4 	Metropolitan Council, the state review agencies, and the Board of Water and Soil Resources 
23.5 	for review in accordance with the provisions of subdivisions 8 to 10.

23.6 	Sec. 35. Minnesota Statutes 2016, section 103D.401, is amended to read:
23.7 	103D.401 WATERSHED MANAGEMENT PLAN.
23.8 		Subdivision 1.Contents. (a) The managers must adopt a watershed management plan 
23.9 	for any or all of the purposes for which a watershed district may be established. The 
23.10 	watershed management plan must give a narrative description of existing water and 
23.11 	water-related problems within the watershed district, possible solutions to the problems, 
23.12 	and the general objectives of the watershed district. The watershed management plan must 
23.13 	also conform closely with watershed management plan guidelines as adopted and amended 
23.14 	from time to time by the Board of Water and Soil Resources.
23.15 	(b) The watershed management plan may include a separate section on proposed projects. 
23.16 	If the watershed district is within the metropolitan area, the separate section of proposed 
23.17 	projects or petitions for projects to be undertaken according to the watershed management 
23.18 	plan is a comprehensive plan of the watershed district for purposes of review by the 
23.19 	Metropolitan Council under section 473.165.
23.20 		Subd. 2.Review. The managers must send a copy of the proposed watershed management 
23.21 	plan to the county auditor of each county affected by the watershed district, the board, the 
23.22 	commissioner, the director, the governing body of each municipality affected by the 
23.23 	watershed district, and soil and water conservation districts affected by the watershed district. 
23.24 	For a watershed district within the metropolitan area, a copy of the proposed watershed 
23.25 	management plan must also be submitted to the Metropolitan Council.
23.26 		Subd. 3.Director's and Metropolitan Council's recommendations. After receiving 
23.27 	the watershed management plan, the director and the Metropolitan Council must review 
23.28 	and make recommendations on the watershed management plan. By 60 days after receiving 
23.29 	the plan, the director and the Metropolitan Council must send their recommendations on 
23.30 	the watershed management plan to the board and a copy to the managers of the watershed 
23.31 	district, the county auditor of each county affected by the watershed district, the governing 
23.32 	bodies of all municipalities affected by the watershed district, and soil and water conservation 
24.1 	districts affected by the watershed district. The board may extend the period for review and 
24.2 	transmittal of the recommendations.
24.3 		Subd. 4.Hearing notice. (a) The board must give notice and hold a watershed 
24.4 	management plan hearing on the proposed watershed management plan by 45 days after 
24.5 	receiving the director's and Metropolitan Council's recommendations.
24.6 	(b) The board must give notice of the watershed management plan hearing by publication 
24.7 	in a legal newspaper that is published in counties affected by the watershed district. The 
24.8 	last publication must occur at least ten days before the watershed management plan hearing.
24.9 	(c) The board must give notice of the watershed management plan hearing by mail to 
24.10 	the auditors of counties and to the chief executive officials of municipalities affected by the 
24.11 	watershed district.
24.12 	(d) The notice must include:
24.13 	(1) a statement that a copy of the proposed watershed management plan has been filed 
24.14 	with the board, the Metropolitan Council, where applicable, the auditors of counties affected 
24.15 	by the proposed watershed district, the commissioner, the director, the governing body of 
24.16 	each municipality affected by the watershed district, and the soil and water conservation 
24.17 	districts affected by the watershed district;
24.18 	(2) a general description of the purpose of the watershed district;
24.19 	(3) a general description of the property included in the watershed district;
24.20 	(4) a general description of the proposed watershed management plan;
24.21 	(5) the date, time, and location of the hearing; and
24.22 	(6) a statement that all persons affected or interested in the watershed district may attend 
24.23 	and give statements at the watershed management plan hearing.
24.24 		Subd. 5.Board approval. After the watershed management plan hearing, the board 
24.25 	must, by order, prescribe and approve a watershed management plan for the watershed 
24.26 	district. The board must send a copy of the order and approved watershed management plan 
24.27 	to the managers, the county board of each county affected by the watershed district, the 
24.28 	commissioner, the director, the Metropolitan Council, where applicable, the governing body 
24.29 	of each municipality affected by the watershed district, and soil and water conservation 
24.30 	districts affected by the watershed district. The watershed management plan approved by 
24.31 	the board is the watershed management plan for the watershed district.

25.1 	Sec. 36. Minnesota Statutes 2016, section 103D.405, subdivision 3, is amended to read:
25.2 		Subd. 3.Review. The managers must send a copy of the revised watershed management 
25.3 	plan to the board, the county board and county auditor of each county affected by the 
25.4 	watershed district, the director, the governing body of each municipality affected by the 
25.5 	watershed district, and soil and water conservation districts affected by the watershed district, 
25.6 	and the Metropolitan Council, if the watershed district is within the metropolitan area.

25.7 	Sec. 37. Minnesota Statutes 2016, section 103D.405, subdivision 4, is amended to read:
25.8 		Subd. 4.Director's and Metropolitan Council's recommendations. The director and 
25.9 	the Metropolitan Council, if applicable, must review and make recommendations on the 
25.10 	revised watershed management plan. By 60 days after receiving the revised watershed 
25.11 	management plan unless the time is extended by the board, the director and the council must 
25.12 	send the recommendations on the revised watershed management plan to the board, and a 
25.13 	copy of the recommendations to the managers, the county auditor of each county affected 
25.14 	by the watershed district, the governing body of each municipality affected by the watershed 
25.15 	district, and soil and water conservation districts affected by the watershed district.

25.16 	Sec. 38. Minnesota Statutes 2016, section 103D.405, subdivision 5, is amended to read:
25.17 		Subd. 5.Notice. (a) The board must give notice and hold a revised watershed management 
25.18 	plan hearing on the proposed revised watershed management plan by 45 days after receiving 
25.19 	the director's and Metropolitan Council's recommendation.
25.20 	(b) The board must give notice of the revised watershed management plan hearing by 
25.21 	publication in a legal newspaper published in counties affected by the watershed district. 
25.22 	The last publication must occur at least ten days before the revised watershed management 
25.23 	plan hearing.
25.24 	(c) The board must give notice of the revised watershed management plan hearing by 
25.25 	mail to the auditors of counties and to the chief executive officials of municipalities affected 
25.26 	by the watershed district.
25.27 	(d) The notice must include:
25.28 	(1) a statement that a copy of the proposed revised watershed management plan has been 
25.29 	filed with the board, the Metropolitan Council, where applicable, the auditors of counties 
25.30 	affected by the proposed watershed district, the commissioner, the director, the governing 
25.31 	body of each municipality affected by the watershed district, and the soil and water 
25.32 	conservation districts affected by the watershed district;
26.1 	(2) a general description of the purpose of the watershed district;
26.2 	(3) a general description of the property included in the watershed district;
26.3 	(4) a general description of the proposed revised watershed management plan;
26.4 	(5) the date, time, and location of the hearing; and
26.5 	(6) a statement that all persons affected or interested in the watershed district may attend 
26.6 	and give statements at the revised watershed management plan hearing.

26.7 	Sec. 39. Minnesota Statutes 2016, section 103D.405, subdivision 6, is amended to read:
26.8 		Subd. 6.Board order. After the revised watershed management plan hearing, the board 
26.9 	must prescribe a revised watershed management plan for the watershed district. The board 
26.10 	must send a copy of the order and approved revised watershed management plan to the 
26.11 	managers, the county board of each county affected by the watershed district, the 
26.12 	commissioner, the director, the Metropolitan Council, where applicable, and soil and water 
26.13 	conservation districts affected by the watershed district. The revised watershed management 
26.14 	plan approved by the board is the revised watershed management plan for the watershed 
26.15 	district.

26.16 	Sec. 40. Minnesota Statutes 2016, section 103G.293, is amended to read:
26.17 	103G.293 STATEWIDE DROUGHT PLAN.
26.18 	The commissioner shall establish a plan to respond to drought-related emergencies and 
26.19 	to prepare a statewide framework for drought response. The plan must consider metropolitan 
26.20 	water supply plans of the Metropolitan Council prepared under section 473.1565. The plan 
26.21 	must provide a framework for implementing drought response actions in a staged approach 
26.22 	related to decreasing levels of flows. Permits issued under section 103G.271 must provide 
26.23 	conditions on water appropriation consistent with the drought response plan established by 
26.24 	this section.

26.25 	Sec. 41. Minnesota Statutes 2016, section 114C.25, is amended to read:
26.26 	114C.25 GREEN STAR AWARD.
26.27 	A regulated entity may display at a facility a "green star" award designed by the 
26.28 	commissioner if:
26.29 	(1) the regulated entity qualifies for participation in the environmental improvement 
26.30 	program under section 114C.22;
27.1 	(2) the scope of the regulated entity's audit examines the facility's compliance with 
27.2 	applicable environmental requirements;
27.3 	(3) the regulated entity certifies that all violations that were identified in the audit of the 
27.4 	facility were corrected within 90 days or within the time specified in an approved 
27.5 	performance schedule or certifies that no violations were identified in the audit; and
27.6 	(4) at least two years have elapsed since the final resolution of an enforcement action 
27.7 	involving the regulated entity.
27.8 	After consulting with each other, however, the commissioner or the county may issue 
27.9 	an award if the enforcement action resulted from minor violations. If the regulated entity 
27.10 	is located in a metropolitan county, the commissioner and the county must also consult with 
27.11 	the Metropolitan Council before issuing a green star award.
27.12 	The award may be displayed for a period of two years from the time that the 
27.13 	commissioner determines that the requirements of this section have been met. A facility 
27.14 	submitting findings from its environmental management system is not eligible to receive 
27.15 	an award unless the findings are part of an audit which examines the facility's compliance 
27.16 	with applicable environmental requirements.

27.17 	Sec. 42. Minnesota Statutes 2016, section 114D.30, subdivision 4, is amended to read:
27.18 		Subd. 4.Terms; compensation; removal.  The terms of members representing the state 
27.19 	agencies and the Metropolitan Council are four years and are coterminous with the governor. 
27.20 	The terms of other nonlegislative members of the council shall be as provided in section 
27.21 	15.059, subdivision 2. Members may serve until their successors are appointed and qualify. 
27.22 	Compensation and removal of nonlegislative council members is as provided in section 
27.23 	15.059, subdivisions 3 and 4. Compensation of legislative members is as determined by the 
27.24 	appointing authority. The Pollution Control Agency may reimburse legislative members 
27.25 	for expenses. A vacancy on the council may be filled by the appointing authority provided 
27.26 	in subdivision 1 for the remainder of the unexpired term.

27.27 	Sec. 43. Minnesota Statutes 2016, section 116M.15, subdivision 1, is amended to read:
27.28 		Subdivision 1. Membership. The Minnesota Emerging Entrepreneur Board is created 
27.29 	and consists of the commissioner of employment and economic development, the 
27.30 	commissioner of human rights, the chair of the Metropolitan Council, and 12 members from 
27.31 	the general public appointed by the governor. Nine of the public members must be 
27.32 	representatives from minority business enterprises. No more than six of the public members 
28.1 	may be of one gender. At least one member must be a representative from a veteran-owned 
28.2 	business, and at least one member must be a representative from a business owned by a 
28.3 	person with disabilities. Appointments must ensure balanced geographic representation. At 
28.4 	least half of the public members must have experience working to address racial income 
28.5 	disparities. All public members must be experienced in business or economic development.

28.6 	Sec. 44. Minnesota Statutes 2016, section 118A.07, subdivision 1, is amended to read:
28.7 		Subdivision 1.Authority provided. As used in this section, "governmental entity" 
28.8 	means a city with a population in excess of 200,000,or a county that contains a city of that 
28.9 	size, or the Metropolitan Council. If a governmental entity meets the requirements of 
28.10 	subdivisions 2 and 3, it may exercise additional investment authority under subdivisions 4, 
28.11 	5, and 6.

28.12 	Sec. 45. Minnesota Statutes 2016, section 124D.892, subdivision 1, is amended to read:
28.13 		Subdivision 1.Establishment. (a) An Office of Desegregation/Integration is established 
28.14 	in the Department of Education to coordinate and support activities related to student 
28.15 	enrollment, student and staff recruitment and retention, transportation, and interdistrict 
28.16 	cooperation among school districts.
28.17 	(b) At the request of a school district involved in cooperative desegregation/integration 
28.18 	efforts, the office shall perform any of the following activities:
28.19 	(1) assist districts with interdistrict student transfers, including student recruitment, 
28.20 	counseling, placement, and transportation;
28.21 	(2) coordinate and disseminate information about schools and programs;
28.22 	(3) assist districts with new magnet schools and programs;
28.23 	(4) assist districts in providing staff development and in-service training; and
28.24 	(5) coordinate and administer staff exchanges.
28.25 	(c) The office shall collect data on the efficacy of districts' desegregation/integration 
28.26 	efforts and make recommendations based on the data. The office shall periodically consult 
28.27 	with the Metropolitan Council to coordinate metropolitan school desegregation/integration 
28.28 	efforts with the housing, social, economic, and infrastructure needs of the metropolitan area.
28.29 	The office shall develop a process for resolving students' disputes and grievances about 
28.30 	student transfers under a desegregation/integration plan.

29.1 	Sec. 46. Minnesota Statutes 2016, section 134.201, subdivision 5, is amended to read:
29.2 		Subd. 5.General levy authority. The board may levy for operation of public library 
29.3 	service. This levy shall replace levies for operation of public library service by cities and 
29.4 	counties authorized in section 134.07. The amount levied shall be spread on the net tax 
29.5 	capacity of all taxable property in the district at a uniform tax rate.
29.6 	(a) The maximum amount that may be levied by a board under this section is the greater 
29.7 	of:
29.8 	(1) the statewide average local support per capita for public library services for the most 
29.9 	recent reporting period available, as certified by the commissioner of education, multiplied 
29.10 	by the population of the district according to the most recent estimate of the state 
29.11 	demographer or the Metropolitan Council; or
29.12 	(2) the total amount provided by participating counties and cities under section 134.34, 
29.13 	subdivision 4, during the year preceding the first year of operation.
29.14 	(b) For its first year of operation, the board shall levy an amount not less than the total 
29.15 	dollar amount provided by participating cities and counties during the preceding year under 
29.16 	section 134.34, subdivision 4.

29.17 	Sec. 47. Minnesota Statutes 2016, section 145A.02, subdivision 16, is amended to read:
29.18 		Subd. 16.Population. "Population" means the total number of residents of the state or 
29.19 	any city or county as established by the last federal census, by a special census taken by the 
29.20 	United States Bureau of the Census, or by the state demographer under section 4A.02, or 
29.21 	by an estimate of city population prepared by the Metropolitan Council, whichever is the 
29.22 	most recent as to the stated date of count or estimate.

29.23 	Sec. 48. Minnesota Statutes 2016, section 160.265, subdivision 1, is amended to read:
29.24 		Subdivision 1.State bikeways. The commissioner of transportation shall establish a 
29.25 	program for the development of bikeways primarily on existing road rights-of-way. The 
29.26 	program shall include a system of bikeways to be established, developed, maintained, and 
29.27 	operated by the commissioner of transportation and a system of state grants for the 
29.28 	development of local bikeways primarily on existing road rights-of-way. The program shall 
29.29 	be coordinated with the local park trail grant program pursuant to section 85.019, with the 
29.30 	bicycle trail program established by the commissioner of natural resources pursuant to 
29.31 	section 85.016, with the development of the statewide transportation plan pursuant to section 
29.32 	174.03, and with existing and proposed local bikeways. In the metropolitan area as defined 
30.1 	in section 473.121, the program shall be developed in accordance with plans and priorities 
30.2 	established by the Metropolitan Council. The program shall be developed after consultation 
30.3 	with the State Trail Council, local units of government, and bicyclist organizations. The 
30.4 	program shall be administered in accordance with the provisions of sections 160.262 to 
30.5 	160.264 and standards promulgated pursuant thereto. The commissioner shall compile and 
30.6 	maintain a current registry of bikeways in the state and shall publish and distribute the 
30.7 	information contained in the registry in a form and manner suitable to assist persons wishing 
30.8 	to use the bikeways. The Metropolitan Council, the commissioner of natural resources, the 
30.9 	commissioner of employment and economic development, the Minnesota Historical Society, 
30.10 	and local units of government shall cooperate with and assist the commissioner of 
30.11 	transportation in preparing the registry. The commissioner shall have all powers necessary 
30.12 	and convenient to establish the program pursuant to this section including but not limited 
30.13 	to the authority to adopt rules pursuant to chapter 14.

30.14 	Sec. 49. Minnesota Statutes 2016, section 174.93, subdivision 2, is amended to read:
30.15 		Subd. 2.Legislative report. (a) By January 15, 2012, and by November 15 in every 
30.16 	odd-numbered year thereafter, the commissioner shall prepare, in collaboration with the 
30.17 	Metropolitan Council, and submit a report electronically to the chairs and ranking minority 
30.18 	members of the legislative committees with jurisdiction over transportation policy and 
30.19 	finance concerning the status of guideway projects (1) currently in study, planning, 
30.20 	development, or construction; (2) identified in the transportation policy plan under section 
30.21 	473.146; or (3) identified in the comprehensive statewide freight and passenger rail plan 
30.22 	under section 174.03, subdivision 1b.
30.23 	(b) At a minimum, the report must include, for each guideway project:
30.24 	(1) a brief description of the project, including projected ridership;
30.25 	(2) a summary of the overall status and current phase of the project;
30.26 	(3) a timeline that includes (i) project phases or milestones; (ii) expected and known 
30.27 	dates of commencement of each phase or milestone; and (iii) expected and known dates of 
30.28 	completion of each phase or milestone;
30.29 	(4) a brief progress update on specific project phases or milestones completed since the 
30.30 	last previous submission of a report under this subdivision; and
30.31 	(5) a summary financial plan that identifies, as reflected by the data and level of detail 
30.32 	available in the latest phase of project development and to the extent available:
31.1 	(i) capital expenditures, including expenditures to date and total projected expenditures, 
31.2 	with a breakdown by committed and proposed sources of funds for the project;
31.3 	(ii) estimated annual operations and maintenance expenditures reflecting the level of 
31.4 	detail available in the current phase of the project development, with a breakdown by 
31.5 	committed and proposed sources of funds for the project; and
31.6 	(iii) if feasible, project expenditures by budget activity.
31.7 	(c) The report must also include a systemwide capacity analysis for investment in 
31.8 	guideway expansion and maintenance that:
31.9 	(1) provides a funding projection, annually over the ensuing ten years, and with a 
31.10 	breakdown by committed and proposed sources of funds, of:
31.11 	(i) total capital expenditures for guideways;
31.12 	(ii) total operations and maintenance expenditures for guideways;
31.13 	(iii) total funding available for guideways, including from projected or estimated farebox 
31.14 	recovery; and
31.15 	(iv) total funding available for transit service in the metropolitan area; and
31.16 	(2) evaluates the availability of funds and distribution of sources of funds for guideway 
31.17 	investments.
31.18 	(d) The projection under paragraph (c), clause (1), must be for all guideway lines for 
31.19 	which state funds are reasonably expected to be expended in planning, development, 
31.20 	construction, or revenue operation during the ensuing ten years.
31.21 	(e) Local units of government shall provide assistance and information in a timely manner 
31.22 	as requested by the commissioner or council for completion of the report.

31.23 	Sec. 50. Minnesota Statutes 2016, section 216C.145, subdivision 1, is amended to read:
31.24 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
31.25 	(b) "Community energy efficiency and renewable energy projects" means solar thermal 
31.26 	water heating, solar electric or photovoltaic equipment, small wind energy conversion 
31.27 	systems of less than 250 kW, anaerobic digester gas systems, microhydro systems up to 
31.28 	100 kW, heating and cooling applications using solar thermal or ground source technology, 
31.29 	and cost-effective energy efficiency projects installed in industrial, commercial, or public 
31.30 	buildings, or health care facilities.
32.1 	(c) "Health care facilities" means a hospital licensed under sections 144.50 to 144.56, 
32.2 	or a nursing home licensed under chapter 144A.
32.3 	(d) "Industrial customer" means a business that is classified under the North American 
32.4 	Industrial Classification System under codes 21, 31 to 33, 48, 49, or 562.
32.5 	(e) "Small business" means a business that employs 50 or fewer employees.
32.6 	(f) "Unit of local government" means any home rule charter or statutory city, county, 
32.7 	commission, district, authority, or other political subdivision or instrumentality of this state, 
32.8 	including a sanitary district, park district, the Metropolitan Council, a port authority, an 
32.9 	economic development authority, or a housing and redevelopment authority.

32.10 	Sec. 51. Minnesota Statutes 2016, section 216C.15, subdivision 1, is amended to read:
32.11 		Subdivision 1.Priorities and requirements. The commissioner shall maintain an 
32.12 	emergency conservation and allocation plan. The plan shall provide a variety of strategies 
32.13 	and staged conservation measures to reduce energy use and, in the event of an energy supply 
32.14 	emergency, shall establish guidelines and criteria for allocation of fuels to priority users. 
32.15 	The plan shall contain alternative conservation actions and allocation plans to reasonably 
32.16 	meet various foreseeable shortage circumstances and allow a choice of appropriate responses. 
32.17 	The plan shall be consistent with requirements of federal emergency energy conservation 
32.18 	and allocation laws and regulations, shall be based on reasonable energy savings or transfers 
32.19 	from scarce energy resources and shall:
32.20 	(1) give priority to individuals, institutions, agriculture, businesses, and public transit 
32.21 	under contract with the commissioner of transportation or the Metropolitan Council which 
32.22 	demonstrate they have engaged in energy-saving measures and shall include provisions to 
32.23 	insure that:
32.24 	(i) immediate allocations to individuals, institutions, agriculture, businesses, and public 
32.25 	transit be based on needs at energy conservation levels;
32.26 	(ii) successive allocations to individuals, institutions, agriculture, businesses, and public 
32.27 	transit be based on needs after implementation of required action to increase energy 
32.28 	conservation; and
32.29 	(iii) needs of individuals, institutions, and public transit are adjusted to insure the health 
32.30 	and welfare of the young, old and infirm;
32.31 	(2) insure maintenance of reasonable job safety conditions and avoid environmental 
32.32 	sacrifices;
33.1 	(3) establish programs, controls, standards, priorities or quotas for the allocation, 
33.2 	conservation, and consumption of energy resources; and for the suspension and modification 
33.3 	of existing standards and the establishment of new standards affecting or affected by the 
33.4 	use of energy resources, including those related to the type and composition of energy 
33.5 	sources, and to the hours and days during which public buildings, commercial and industrial 
33.6 	establishments, and other energy-consuming facilities may or are required to remain open;
33.7 	(4) establish programs to control the use, sale or distribution of commodities, materials, 
33.8 	goods or services;
33.9 	(5) establish regional programs and agreements for the purpose of coordinating the 
33.10 	energy resources, programs and actions of the state with those of the federal government, 
33.11 	of local governments, and of other states and localities;
33.12 	(6) determine at what level of an energy supply emergency situation the Pollution Control 
33.13 	Agency shall be requested to ask the governor to petition the president for a temporary 
33.14 	emergency suspension of air quality standards as required by the Clean Air Act, United 
33.15 	States Code, title 42, section 7410f; and
33.16 	(7) establish procedures for fair and equitable review of complaints and requests for 
33.17 	special exemptions regarding emergency conservation measures or allocations.

33.18 	Sec. 52. Minnesota Statutes 2016, section 216H.02, subdivision 2, is amended to read:
33.19 		Subd. 2.Climate change action plan. By February 1, 2008, the commissioner of 
33.20 	commerce, in consultation with the commissioners of the Pollution Control Agency, the 
33.21 	Housing Finance Agency, and the Departments of Natural Resources, Agriculture, 
33.22 	Employment and Economic Development, and Transportation, and the chair of the 
33.23 	Metropolitan Council, shall submit to the legislature a climate change action plan that meets 
33.24 	the requirements of this section.

33.25 	Sec. 53. Minnesota Statutes 2016, section 240.06, subdivision 2, is amended to read:
33.26 		Subd. 2.Hearings. Before granting a class A license the commission shall conduct one 
33.27 	or more public hearings in the area where the racetrack is or will be located. The commission 
33.28 	shall also request comments on the application from the city council or town board of the 
33.29 	city or town where the track is or will be located, or from the county board if it is to be 
33.30 	located outside a city or town and from the appropriate regional development commission 
33.31 	or the Metropolitan Council, as the case may be.

34.1 	Sec. 54. Minnesota Statutes 2016, section 270.12, subdivision 3, is amended to read:
34.2 		Subd. 3.Jurisdictions in two or more counties. When a taxing jurisdiction lies in two 
34.3 	or more counties, if the sales ratio studies prepared by the Department of Revenue show 
34.4 	that the average levels of assessment in the several portions of the taxing jurisdictions in 
34.5 	the different counties differ by more than five percent, the board may order the apportionment 
34.6 	of the levy. When the sales ratio studies prepared by the Department of Revenue show that 
34.7 	the average levels of assessment in the several portions of the taxing jurisdictions in the 
34.8 	different counties differ by more than ten percent, the board shall order the apportionment 
34.9 	of the levy unless (a) the proportion of total adjusted tax capacity in one of the counties is 
34.10 	less than ten percent of the total adjusted tax capacity in the taxing jurisdiction and the 
34.11 	average level of assessment in that portion of the taxing jurisdiction is the level which differs 
34.12 	by more than five percent from the assessment level in any one of the other portions of the 
34.13 	taxing jurisdiction; (b) significant changes have been made in the level of assessment in the 
34.14 	taxing jurisdiction which have not been reflected in the sales ratio study, and those changes 
34.15 	alter the assessment levels in the portions of the taxing jurisdiction so that the assessment 
34.16 	level now differs by five percent or less; or (c) commercial, industrial, mineral, or public 
34.17 	utility property predominates in one county within the taxing jurisdiction and another class 
34.18 	of property predominates in another county within that same taxing jurisdiction. If one or 
34.19 	more of these factors are present, the board may order the apportionment of the levy.
34.20 	Notwithstanding any other provision, the levy for the Metropolitan Mosquito Control 
34.21 	District, Metropolitan Council, metropolitan transit district, and metropolitan transit area 
34.22 	must be apportioned without regard to the percentage difference.
34.23 	If, pursuant to this subdivision, the board apportions the levy, then that levy 
34.24 	apportionment among the portions in the different counties shall be made in the same 
34.25 	proportion as the adjusted tax capacity as determined by the commissioner in each portion 
34.26 	is to the total adjusted tax capacity of the taxing jurisdiction.
34.27 	For the purposes of this section, the average level of assessment in a taxing jurisdiction 
34.28 	or portion thereof shall be the aggregate assessment sales ratio. Tax capacities as determined 
34.29 	by the commissioner shall be the tax capacities as determined for the year preceding the 
34.30 	year in which the levy to be apportioned is levied.
34.31 	Actions pursuant to this subdivision shall be commenced subsequent to the annual 
34.32 	meeting on April 15 of the State Board of Equalization, but notice of the action shall be 
34.33 	given to the affected jurisdiction and the appropriate county auditors by the following June 
34.34 	30.
35.1 	Apportionment of a levy pursuant to this subdivision shall be considered as a remedy 
35.2 	to be taken after equalization pursuant to subdivision 2, and when equalization within the 
35.3 	jurisdiction would disturb equalization within other jurisdictions of which the several portions 
35.4 	of the jurisdiction in question are a part.

35.5 	Sec. 55. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:
35.6 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare and 
35.7 	the county treasurer shall deliver after November 10 and on or before November 24 each 
35.8 	year, by first class mail to each taxpayer at the address listed on the county's current year's 
35.9 	assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 
35.10 	the treasurer may send the notice in electronic form or by electronic mail instead of on paper 
35.11 	or by ordinary mail.
35.12 	(b) The commissioner of revenue shall prescribe the form of the notice.
35.13 	(c) The notice must inform taxpayers that it contains the amount of property taxes each 
35.14 	taxing authority proposes to collect for taxes payable the following year. In the case of a 
35.15 	town, or in the case of the state general tax, the final tax amount will be its proposed tax. 
35.16 	The notice must clearly state for each city that has a population over 500, county, school 
35.17 	district, regional library authority established under section 134.201, and metropolitan taxing 
35.18 	districts as defined in paragraph (i), the time and place of a meeting for each taxing authority 
35.19 	in which the budget and levy will be discussed and public input allowed, prior to the final 
35.20 	budget and levy determination. The taxing authorities must provide the county auditor with 
35.21 	the information to be included in the notice on or before the time it certifies its proposed 
35.22 	levy under subdivision 1. The public must be allowed to speak at that meeting, which must 
35.23 	occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone 
35.24 	number for the taxing authority that taxpayers may call if they have questions related to the 
35.25 	notice and an address where comments will be received by mail, except that no notice 
35.26 	required under this section shall be interpreted as requiring the printing of a personal 
35.27 	telephone number or address as the contact information for a taxing authority. If a taxing 
35.28 	authority does not maintain public offices where telephone calls can be received by the 
35.29 	authority, the authority may inform the county of the lack of a public telephone number and 
35.30 	the county shall not list a telephone number for that taxing authority.
35.31 	(d) The notice must state for each parcel:
35.32 	(1) the market value of the property as determined under section 273.11, and used for 
35.33 	computing property taxes payable in the following year and for taxes payable in the current 
35.34 	year as each appears in the records of the county assessor on November 1 of the current 
36.1 	year; and, in the case of residential property, whether the property is classified as homestead 
36.2 	or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 
36.3 	values apply and that the values are final values;
36.4 	(2) the items listed below, shown separately by county, city or town, and state general 
36.5 	tax, agricultural homestead credit under section 273.1384, voter approved school levy, other 
36.6 	local school levy, and the sum of the special taxing districts, and as a total of all taxing 
36.7 	authorities:
36.8 	(i) the actual tax for taxes payable in the current year; and
36.9 	(ii) the proposed tax amount.
36.10 	If the county levy under clause (2) includes an amount for a lake improvement district 
36.11 	as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 
36.12 	must be separately stated from the remaining county levy amount.
36.13 	In the case of a town or the state general tax, the final tax shall also be its proposed tax 
36.14 	unless the town changes its levy at a special town meeting under section 365.52. If a school 
36.15 	district has certified under section 126C.17, subdivision 9, that a referendum will be held 
36.16 	in the school district at the November general election, the county auditor must note next 
36.17 	to the school district's proposed amount that a referendum is pending and that, if approved 
36.18 	by the voters, the tax amount may be higher than shown on the notice. In the case of the 
36.19 	city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 
36.20 	from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 
36.21 	the St. Paul Library Agency must be listed separately from the remaining amount of the 
36.22 	city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 
36.23 	listed separately from the remaining amount of the county's levy. In the case of a parcel 
36.24 	where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 
36.25 	applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 
36.26 	capacity subject to the areawide tax must each be stated separately and not included in the 
36.27 	sum of the special taxing districts; and
36.28 	(3) the increase or decrease between the total taxes payable in the current year and the 
36.29 	total proposed taxes, expressed as a percentage.
36.30 	For purposes of this section, the amount of the tax on homesteads qualifying under the 
36.31 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
36.32 	property tax before subtraction of the deferred property tax amount.
37.1 	(e) The notice must clearly state that the proposed or final taxes do not include the 
37.2 	following:
37.3 	(1) special assessments;
37.4 	(2) levies approved by the voters after the date the proposed taxes are certified, including 
37.5 	bond referenda and school district levy referenda;
37.6 	(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 
37.7 	in November of the levy year as provided under section 275.73;
37.8 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 
37.9 	after the date the proposed taxes are certified;
37.10 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
37.11 	final after the date the proposed taxes are certified; and
37.12 	(6) the contamination tax imposed on properties which received market value reductions 
37.13 	for contamination.
37.14 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 
37.15 	county treasurer to deliver the notice as required in this section does not invalidate the 
37.16 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
37.17 	(g) If the notice the taxpayer receives under this section lists the property as 
37.18 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
37.19 	applicable deadline, and the property qualifies for the homestead classification in that 
37.20 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
37.21 	in the following year.
37.22 	(h) In the case of class 4 residential property used as a residence for lease or rental 
37.23 	periods of 30 days or more, the taxpayer must either:
37.24 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 
37.25 	or lessee; or
37.26 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
37.27 	The notice must be mailed or posted by the taxpayer by November 27 or within three 
37.28 	days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 
37.29 	of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 
37.30 	notice must be mailed in order to fulfill the requirements of this paragraph.
38.1 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
38.2 	districts" means the following taxing districts in the seven-county metropolitan area that 
38.3 	levy a property tax for any of the specified purposes listed below:
38.4 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 
38.5 	473.521, 473.547, or 473.834;
38.6 	(2)(1) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 
38.7 	and
38.8 	(3)(2) Metropolitan Mosquito Control Commission under section 473.711.
38.9 	For purposes of this section, any levies made by the regional rail authorities in the county 
38.10 	of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 
38.11 	shall be included with the appropriate county's levy.
38.12 	(j) The governing body of a county, city, or school district may, with the consent of the 
38.13 	county board, include supplemental information with the statement of proposed property 
38.14 	taxes about the impact of state aid increases or decreases on property tax increases or 
38.15 	decreases and on the level of services provided in the affected jurisdiction. This supplemental 
38.16 	information may include information for the following year, the current year, and for as 
38.17 	many consecutive preceding years as deemed appropriate by the governing body of the 
38.18 	county, city, or school district. It may include only information regarding:
38.19 	(1) the impact of inflation as measured by the implicit price deflator for state and local 
38.20 	government purchases;
38.21 	(2) population growth and decline;
38.22 	(3) state or federal government action; and
38.23 	(4) other financial factors that affect the level of property taxation and local services 
38.24 	that the governing body of the county, city, or school district may deem appropriate to 
38.25 	include.
38.26 	The information may be presented using tables, written narrative, and graphic 
38.27 	representations and may contain instruction toward further sources of information or 
38.28 	opportunity for comment.

38.29 	Sec. 56. Minnesota Statutes 2016, section 275.066, is amended to read:
38.30 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
39.1 	For the purposes of property taxation and property tax state aids, the term "special taxing 
39.2 	districts" includes the following entities:
39.3 	(1) watershed districts under chapter 103D;
39.4 	(2) sanitary districts under sections 442A.01 to 442A.29;
39.5 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
39.6 	(4) regional public library districts under section 134.201;
39.7 	(5) park districts under chapter 398;
39.8 	(6) regional railroad authorities under chapter 398A;
39.9 	(7) hospital districts under sections 447.31 to 447.38;
39.10 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
39.11 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
39.12 	(10) regional development commissions under sections 462.381 to 462.398;
39.13 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
39.14 	(12) port authorities under sections 469.048 to 469.068;
39.15 	(13) economic development authorities under sections 469.090 to 469.1081;
39.16 	(14) Metropolitan Council under sections 473.123 to 473.549;
39.17 	(15)(14) Metropolitan Airports Commission under sections 473.601 to 473.679;
39.18 	(16)(15) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
39.19 	(17)(16) Morrison County Rural Development Financing Authority under Laws 1982, 
39.20 	chapter 437, section 1;
39.21 	(18)(17) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 
39.22 	6;
39.23 	(19)(18) East Lake County Medical Clinic District under Laws 1989, chapter 211, 
39.24 	sections 1 to 6;
39.25 	(20)(19) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 
39.26 	5, section 39;
39.27 	(21)(20) Middle Mississippi River Watershed Management Organization under sections 
39.28 	103B.211 and 103B.241;
39.29 	(22)(21) emergency medical services special taxing districts under section 144F.01;
40.1 	(23)(22) a county levying under the authority of section 103B.241, 103B.245, or 
40.2 	103B.251;
40.3 	(24)(23) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
40.4 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
40.5 	(25)(24) an airport authority created under section 360.0426; and
40.6 	(26)(25) any other political subdivision of the state of Minnesota, excluding counties, 
40.7 	school districts, cities, and towns, that has the power to adopt and certify a property tax levy 
40.8 	to the county auditor, as determined by the commissioner of revenue.

40.9 	Sec. 57. Minnesota Statutes 2016, section 275.62, subdivision 3, is amended to read:
40.10 		Subd. 3.Population estimate. For the purposes of this section, the population of a local 
40.11 	governmental unit shall be that established by the last federal census, by a census taken 
40.12 	under section 275.14, or by an estimate made by the Metropolitan Council or by the state 
40.13 	demographer made under section 4A.02, whichever is the most recent as to the stated date 
40.14 	of count or estimate for the calendar year preceding the current levy year.

40.15 	Sec. 58. Minnesota Statutes 2016, section 275.70, subdivision 4, is amended to read:
40.16 		Subd. 4.Population; number of households. "Population" or "number of households" 
40.17 	means the population or number of households for the local governmental unit as established 
40.18 	by the last federal census, by a census taken under section 275.14, or by an estimate made 
40.19 	by the metropolitan council or by the state demographer under section 4A.02, whichever is 
40.20 	most recent as to the stated date of the count or estimate up to and including June 1 of the 
40.21 	current levy year.

40.22 	Sec. 59. Minnesota Statutes 2016, section 297A.70, subdivision 2, is amended to read:
40.23 		Subd. 2.Sales to government. (a) All sales, except those listed in paragraph (b), to the 
40.24 	following governments and political subdivisions, or to the listed agencies or instrumentalities 
40.25 	of governments and political subdivisions, are exempt:
40.26 	(1) the United States and its agencies and instrumentalities;
40.27 	(2) school districts, local governments, the University of Minnesota, state universities, 
40.28 	community colleges, technical colleges, state academies, the Perpich Minnesota Center for 
40.29 	Arts Education, and an instrumentality of a political subdivision that is accredited as an 
40.30 	optional/special function school by the North Central Association of Colleges and Schools;
41.1 	(3) hospitals and nursing homes owned and operated by political subdivisions of the 
41.2 	state of tangible personal property and taxable services used at or by hospitals and nursing 
41.3 	homes;
41.4 	(4) notwithstanding paragraph (d), the sales and purchases by the Metropolitan Council 
41.5 	of vehicles and repair parts to equip operations provided for in section 473.4051 are exempt 
41.6 	through December 31, 2016;
41.7 	(5) (4) other states or political subdivisions of other states, if the sale would be exempt 
41.8 	from taxation if it occurred in that state; and
41.9 	(6) (5) public libraries, public library systems, multicounty, multitype library systems 
41.10 	as defined in section 134.001, county law libraries under chapter 134A, state agency libraries, 
41.11 	the state library under section 480.09, and the Legislative Reference Library.
41.12 	(b) This exemption does not apply to the sales of the following products and services:
41.13 	(1) building, construction, or reconstruction materials purchased by a contractor or a 
41.14 	subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed 
41.15 	maximum price covering both labor and materials for use in the construction, alteration, or 
41.16 	repair of a building or facility;
41.17 	(2) construction materials purchased by tax exempt entities or their contractors to be 
41.18 	used in constructing buildings or facilities which will not be used principally by the tax 
41.19 	exempt entities;
41.20 	(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except 
41.21 	for leases entered into by the United States or its agencies or instrumentalities;
41.22 	(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), 
41.23 	and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, 
41.24 	subdivision 2, except for lodging, prepared food, candy, soft drinks, and alcoholic beverages 
41.25 	purchased directly by the United States or its agencies or instrumentalities; or
41.26 	(5) goods or services purchased by a local government as inputs to a liquor store, gas 
41.27 	or electric utility, solid waste hauling service, solid waste recycling service, landfill, golf 
41.28 	course, marina, campground, cafe, or laundromat.
41.29 	(c) As used in this subdivision, "school districts" means public school entities and districts 
41.30 	of every kind and nature organized under the laws of the state of Minnesota, and any 
41.31 	instrumentality of a school district, as defined in section 471.59.
42.1 	(d) For purposes of the exemption granted under this subdivision, "local governments" 
42.2 	has the following meaning:
42.3 	(1) for the period prior to January 1, 2017, local governments means statutory or home 
42.4 	rule charter cities, counties, and townships; and
42.5 	(2) beginning January 1, 2017, local governments means statutory or home rule charter 
42.6 	cities, counties, and townships; special districts as defined under section 6.465; any 
42.7 	instrumentality of a statutory or home rule charter city, county, or township as defined in 
42.8 	section 471.59; and any joint powers board or organization created under section 471.59.

42.9 	Sec. 60. Minnesota Statutes 2016, section 297A.70, subdivision 3, is amended to read:
42.10 		Subd. 3.Sales of certain goods and services to government. (a) The following sales 
42.11 	to or use by the specified governments and political subdivisions of the state are exempt:
42.12 	(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and fire 
42.13 	apparatus to a political subdivision;
42.14 	(2) machinery and equipment, except for motor vehicles, used directly for mixed 
42.15 	municipal solid waste management services at a solid waste disposal facility as defined in 
42.16 	section 115A.03, subdivision 10;
42.17 	(3) chore and homemaking services to a political subdivision of the state to be provided 
42.18 	to elderly or disabled individuals;
42.19 	(4) telephone services to the Office of MN.IT Services that are used to provide 
42.20 	telecommunications services through the MN.IT services revolving fund;
42.21 	(5) firefighter personal protective equipment as defined in paragraph (b), if purchased 
42.22 	or authorized by and for the use of an organized fire department, fire protection district, or 
42.23 	fire company regularly charged with the responsibility of providing fire protection to the 
42.24 	state or a political subdivision;
42.25 	(6) bullet-resistant body armor that provides the wearer with ballistic and trauma 
42.26 	protection, if purchased by a law enforcement agency of the state or a political subdivision 
42.27 	of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;
42.28 	(7) motor vehicles purchased or leased by political subdivisions of the state if the vehicles 
42.29 	are exempt from registration under section 168.012, subdivision 1, paragraph (b), exempt 
42.30 	from taxation under section 473.448, or exempt from the motor vehicle sales tax under 
42.31 	section 297B.03, clause (12);
43.1 	(8) equipment designed to process, dewater, and recycle biosolids for wastewater 
43.2 	treatment facilities of political subdivisions, and materials incidental to installation of that 
43.3 	equipment;
43.4 	(9) the removal of trees, bushes, or shrubs for the construction and maintenance of roads, 
43.5 	trails, or firebreaks when purchased by an agency of the state or a political subdivision of 
43.6 	the state;
43.7 	(10) purchases by the Metropolitan Council or the Department of Transportation of 
43.8 	vehicles and repair parts to equip operations provided for in section 174.90, including, but 
43.9 	not limited to, the Northstar Corridor Rail project; and
43.10 	(11) purchases of water used directly in providing public safety services by an organized 
43.11 	fire department, fire protection district, or fire company regularly charged with the 
43.12 	responsibility of providing fire protection to the state or a political subdivision.
43.13 	(b) For purposes of this subdivision, "firefighters personal protective equipment" means 
43.14 	helmets, including face shields, chin straps, and neck liners; bunker coats and pants, including 
43.15 	pant suspenders; boots; gloves; head covers or hoods; wildfire jackets; protective coveralls; 
43.16 	goggles; self-contained breathing apparatus; canister filter masks; personal alert safety 
43.17 	systems; spanner belts; optical or thermal imaging search devices; and all safety equipment 
43.18 	required by the Occupational Safety and Health Administration.
43.19 	(c) For purchases of items listed in paragraph (a), clause (10), the tax must be imposed 
43.20 	and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded 
43.21 	in the manner provided in section 297A.75.

43.22 	Sec. 61. Minnesota Statutes 2016, section 297A.992, subdivision 4, is amended to read:
43.23 		Subd. 4.Joint powers board. (a) The joint powers board must consist of one or more 
43.24 	commissioners of each county that is in the metropolitan transportation area, appointed by 
43.25 	its county board, and the chair of the Metropolitan Council, who must have voting rights, 
43.26 	subject to subdivision 3, clause (4). The joint powers board has the powers and duties 
43.27 	provided in this section and section 471.59.
43.28 	(b) The joint powers board may utilize no more than three-fourths of one percent of the 
43.29 	proceeds of the taxes imposed under this section for ordinary administrative expenses 
43.30 	incurred in carrying out the provisions of this section. Any additional administrative expenses 
43.31 	must be paid by the participating counties.
43.32 	(c) The joint powers board may establish a technical advisory group that is separate from 
43.33 	the GEARS Committee. The group must consist of representatives of cities, counties, or 
44.1 	public agencies, including the Metropolitan Council. The technical advisory group must be 
44.2 	used solely for technical consultation purposes.

44.3 	Sec. 62. Minnesota Statutes 2016, section 297A.992, subdivision 5, is amended to read:
44.4 		Subd. 5.Grant application and awards; Grant Evaluation and Ranking System 
44.5 	(GEARS) Committee. (a) The joint powers board shall establish a grant application process 
44.6 	and identify the amount of available funding for grant awards. Grant applications must be 
44.7 	submitted in a form prescribed by the joint powers board. An applicant must provide, in 
44.8 	addition to all other information required by the joint powers board, the estimated cost of 
44.9 	the project, the amount of the grant sought, possible sources of funding in addition to the 
44.10 	grant sought, and identification of any federal funds that will be utilized if the grant is 
44.11 	awarded. A grant application seeking transit capital funding must identify the source of 
44.12 	money necessary to operate the transit improvement.
44.13 	(b) The joint powers board shall establish a timeline and procedures for the award of 
44.14 	grants, and may award grants only to the state and political subdivisions. The board shall 
44.15 	define objective criteria for the award of grants, which must include, but not be limited to, 
44.16 	consistency with the most recent version of the transportation policy plan adopted by the 
44.17 	Metropolitan Council under section 473.146. The joint powers board shall maximize the 
44.18 	availability and use of federal funds in projects funded under this section.
44.19 	(c) The joint powers board shall establish a GEARS Committee, which must consist of:
44.20 	(1) one county commissioner from each county that is in the metropolitan transportation 
44.21 	area, appointed by its county board;
44.22 	(2) one elected city representative from each county that is in the metropolitan 
44.23 	transportation area; and
44.24 	(3) one additional elected city representative from each county for every additional 
44.25 	400,000 in population, or fraction of 400,000, in the county that is above 400,000 in 
44.26 	population; and.
44.27 	(4) the chair of the Metropolitan Council Transportation Committee.
44.28 	(d) Each city representative must be elected at a meeting of cities in the metropolitan 
44.29 	transportation area, which must be convened for that purpose by the Association of 
44.30 	Metropolitan Municipalities.
45.1 	(e) The committee shall evaluate grant applications following objective criteria established 
45.2 	by the joint powers board, and must provide to the joint powers board a selection list of 
45.3 	transportation projects that includes a priority ranking.
45.4 	(f) A grant award for a transit project located within the metropolitan area, as defined 
45.5 	in section 473.121, subdivision 2, may be funded only after the Metropolitan Council reviews 
45.6 	the project for consistency with the transit portion of the Metropolitan Council policy plan 
45.7 	and one of the following occurs:
45.8 	(1) the Metropolitan Council finds the project to be consistent;
45.9 	(2) the Metropolitan Council initially finds the project to be inconsistent, but after a 
45.10 	good faith effort to resolve the inconsistency through negotiations with the joint powers 
45.11 	board, agrees that the grant award may be funded; or
45.12 	(3) the Metropolitan Council finds the project to be inconsistent, and submits the 
45.13 	consistency issue for final determination to a panel, which determines the project to be 
45.14 	consistent. The panel is composed of a member appointed by the chair of the Metropolitan 
45.15 	Council, a member appointed by the joint powers board, and a member agreed upon by both 
45.16 	the chair and the joint powers board.
45.17 	(g)(f) Grants must be funded by the proceeds of the taxes imposed under this section, 
45.18 	bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
45.19 	(h) Notwithstanding the provisions of this section except subdivision 6a, of the revenue 
45.20 	collected under this section, the joint powers board shall allocate to the Metropolitan Council, 
45.21 	in fiscal years 2012 and 2013, an amount not less than 75 percent of the net cost of operations 
45.22 	for those transitways that were receiving metropolitan sales tax funds through an operating 
45.23 	grant agreement on June 30, 2011.
45.24 	(i) The Metropolitan Council shall expend any funds allocated under paragraph (h) for 
45.25 	the operations of the specified transitways solely within those counties that are in the 
45.26 	metropolitan transportation area.
45.27 	(j) Nothing in paragraph (h) or (i) prevents grant awards to the Metropolitan Council 
45.28 	for capital and operating assistance for transitways and park-and-ride facilities.

45.29 	Sec. 63. Minnesota Statutes 2016, section 352.01, subdivision 2a, is amended to read:
45.30 		Subd. 2a.Included employees. (a) "State employee" includes:
45.31 	(1) employees of the Minnesota Historical Society;
45.32 	(2) employees of the State Horticultural Society;
46.1 	(3) employees of the Minnesota Crop Improvement Association;
46.2 	(4) employees of the adjutant general whose salaries are paid from federal funds and 
46.3 	who are not covered by any federal civilian employees retirement system;
46.4 	(5) employees of the Minnesota State Colleges and Universities who are employed under 
46.5 	the university or college activities program;
46.6 	(6) currently contributing employees covered by the system who are temporarily 
46.7 	employed by the legislature during a legislative session or any currently contributing 
46.8 	employee employed for any special service as defined in subdivision 2b, clause (6);
46.9 	(7) employees of the legislature who are appointed without a limit on the duration of 
46.10 	their employment;
46.11 	(8) trainees who are employed on a full-time established training program performing 
46.12 	the duties of the classified position for which they will be eligible to receive immediate 
46.13 	appointment at the completion of the training period;
46.14 	(9) employees of the Minnesota Safety Council;
46.15 	(10) any employees who are on authorized leave of absence from the Transit Operating 
46.16 	Division of the former Metropolitan Transit Commission and who are employed by the 
46.17 	labor organization which is the exclusive bargaining agent representing employees of the 
46.18 	Transit Operating Division;
46.19 	(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space 
46.20 	Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito Control 
46.21 	Commission unless excluded under subdivision 2b or are covered by another public pension 
46.22 	fund or plan under section 473.415, subdivision 3;
46.23 	(12) judges of the Tax Court;
46.24 	(13) personnel who were employed on June 30, 1992, by the University of Minnesota 
46.25 	in the management, operation, or maintenance of its heating plant facilities, whose 
46.26 	employment transfers to an employer assuming operation of the heating plant facilities, so 
46.27 	long as the person is employed at the University of Minnesota heating plant by that employer 
46.28 	or by its successor organization;
46.29 	(14) personnel who are employed as seasonal employees in the classified or unclassified 
46.30 	service;
47.1 	(15) persons who are employed by the Department of Commerce as a peace officer in 
47.2 	the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory 
47.3 	retirement age specified in section 43A.34, subdivision 4;
47.4 	(16) employees of the University of Minnesota unless excluded under subdivision 2b, 
47.5 	clause (3);
47.6 	(17) employees of the Middle Management Association whose employment began after 
47.7 	July 1, 2007, and to whom section 352.029 does not apply;
47.8 	(18) employees of the Minnesota Government Engineers Council to whom section 
47.9 	352.029 does not apply;
47.10 	(19) employees of the Minnesota Sports Facilities Authority;
47.11 	(20) employees of the Minnesota Association of Professional Employees;
47.12 	(21) employees of the Minnesota State Retirement System;
47.13 	(22) employees of the State Agricultural Society;
47.14 	(23) employees of the Gillette Children's Hospital Board who were employed in the 
47.15 	state unclassified service at the former Gillette Children's Hospital on March 28, 1974; and
47.16 	(24) if approved for coverage by the Board of Directors of Conservation Corps Minnesota, 
47.17 	employees of Conservation Corps Minnesota so employed on June 30, 2003.
47.18 	(b) Employees specified in paragraph (a), clause (13), are included employees under 
47.19 	paragraph (a) if employer and employee contributions are made in a timely manner in the 
47.20 	amounts required by section 352.04. Employee contributions must be deducted from salary. 
47.21 	Employer contributions are the sole obligation of the employer assuming operation of the 
47.22 	University of Minnesota heating plant facilities or any successor organizations to that 
47.23 	employer.

47.24 	Sec. 64. Minnesota Statutes 2016, section 352.01, subdivision 2b, is amended to read:
47.25 		Subd. 2b.Excluded employees. "State employee" does not include:
47.26 	(1) persons who are:
47.27 	(i) students employed by the University of Minnesota, or within the Minnesota State 
47.28 	Colleges and Universities system, unless approved for coverage by the Board of Regents 
47.29 	of the University of Minnesota or the Board of Trustees of the Minnesota State Colleges 
47.30 	and Universities, whichever applies;
48.1 	(ii) employed as interns for a period not to exceed six months unless included under 
48.2 	subdivision 2a, paragraph (a), clause (8);
48.3 	(iii) employed as trainee employees unless included under subdivision 2a, paragraph 
48.4 	(a), clause (8); or
48.5 	(iv) employed in the student worker classification as designated by Minnesota 
48.6 	Management and Budget;
48.7 	(2) employees who are:
48.8 	(i) eligible for membership in the state Teachers Retirement Association, unless the 
48.9 	person is an employee of the Department of Education who elected to be covered by the 
48.10 	general state employees retirement plan of the Minnesota State Retirement System instead 
48.11 	of the Teachers Retirement Association;
48.12 	(ii) employees of the state who, in any year, were credited with 12 months of allowable 
48.13 	service as a public school teacher and, as such, are members of a retirement plan governed 
48.14 	by chapter 354 or 354A unless the employment is incidental employment as a state employee 
48.15 	that is not covered by a retirement plan governed by chapter 354 or 354A;
48.16 	(iii) employees of the state who are employed by the Board of Trustees of the Minnesota 
48.17 	State Colleges and Universities in an unclassified position that is listed in section 43A.08, 
48.18 	subdivision 1, clause (9);
48.19 	(iv) persons employed by the Board of Trustees of the Minnesota State Colleges and 
48.20 	Universities who elected retirement coverage other than by the general state employees 
48.21 	retirement plan of the Minnesota State Retirement System under Minnesota Statutes 1994, 
48.22 	section 136C.75;
48.23 	(v) officers or enlisted personnel in the National Guard or in the naval militia who are 
48.24 	assigned to permanent peacetime duty and who are or are required to be members of a 
48.25 	federal retirement system under federal law;
48.26 	(vi) persons employed by the Department of Military Affairs as full-time firefighters 
48.27 	and who, as such, are members of the public employees police and fire retirement plan;
48.28 	(vii) members of the State Patrol retirement plan under section 352B.011, subdivision 
48.29 	10; and
48.30 	(viii) off-duty police officers while employed by the Metropolitan Council and persons 
48.31 	employed as full-time police officers by the Metropolitan Council and who, as such, are 
48.32 	members of the public employees police and fire retirement plan; and
49.1 	(ix)(viii) employees of the state who have elected to transfer account balances derived 
49.2 	from state service to the unclassified state employees retirement program under section 
49.3 	352D.02, subdivision 1d;
49.4 	(3) employees of the University of Minnesota who are excluded from coverage by action 
49.5 	of the Board of Regents;
49.6 	(4) election judges and persons who are employed solely to administer elections;
49.7 	(5) persons who are:
49.8 	(i) engaged in public work for the state but who are employed by contractors when the 
49.9 	performance of the contract is authorized by the legislature or other competent authority;
49.10 	(ii) employed to perform professional services where the service is incidental to the 
49.11 	person's regular professional duties and where compensation is paid on a per diem basis; 
49.12 	or
49.13 	(iii) compensated on a fee payment basis or as an independent contractor;
49.14 	(6) persons who are employed:
49.15 	(i) on a temporary basis by the house of representatives, the senate, or a legislative 
49.16 	commission or agency under the jurisdiction of the Legislative Coordinating Commission;
49.17 	(ii) as a temporary employee on or after July 1 for a period ending on or before October 
49.18 	15 of that calendar year for the Minnesota State Agricultural Society or the Minnesota State 
49.19 	Fair, or as an employee at any time for a special event held on the fairgrounds;
49.20 	(iii) by the executive branch as a temporary employee in the classified service or as an 
49.21 	executive branch temporary employee in the unclassified service if appointed for a definite 
49.22 	period not to exceed six months, and if employment is less than six months, then in any 
49.23 	12-month period;
49.24 	(iv) by the adjutant general if employed on an unlimited intermittent or temporary basis 
49.25 	in the classified service or in the unclassified service for the support of Army or Air National 
49.26 	Guard training facilities; and
49.27 	(v) by a state or federal program for training or rehabilitation as a temporary employee 
49.28 	if employed for a limited period from an area of economic distress and if other than a skilled 
49.29 	or supervisory personnel position or other than a position that has civil service status covered 
49.30 	by the retirement system; and
50.1 	(vi) by the Metropolitan Council or a statutory board of the Metropolitan Council where 
50.2 	the members of the board are appointed by the Metropolitan Council as a temporary employee 
50.3 	if the appointment does not exceed six months;
50.4 	(7) receivers, jurors, notaries public, and court employees who are not in the judicial 
50.5 	branch as defined in section 43A.02, subdivision 25, except referees and adjusters employed 
50.6 	by the Department of Labor and Industry;
50.7 	(8) patient and inmate help who perform services in state charitable, penal, and 
50.8 	correctional institutions, including a Minnesota Veterans Home;
50.9 	(9) employees of the Sibley House Association;
50.10 	(10) persons who are:
50.11 	(i) members of any state board or commission who serve the state intermittently and are 
50.12 	paid on a per diem basis, the secretary, secretary-treasurer, and treasurer of those boards if 
50.13 	their compensation is $5,000 or less per year, or, if they are legally prohibited from serving 
50.14 	more than three years, and the board of managers of the State Agricultural Society and its 
50.15 	treasurer unless the treasurer is also its full-time secretary;
50.16 	(ii) examination monitors employed by a department, agency, commission, or board of 
50.17 	the state to conduct examinations that are required by law; or
50.18 	(iii) appointees serving as a member of a fact-finding commission or an adjustment 
50.19 	panel, an arbitrator, or a labor referee under chapter 179;
50.20 	(11) emergency employees who are in the classified service, but if an emergency 
50.21 	employee, within the same pay period, becomes a provisional or probationary employee on 
50.22 	other than a temporary basis, the employee must be considered a "state employee" 
50.23 	retroactively to the beginning of the pay period;
50.24 	(12) persons who are members of a religious order who are excluded from coverage 
50.25 	under the federal Old Age, Survivors, Disability, and Health Insurance Program for the 
50.26 	performance of service as specified in United States Code, title 42, section 410(a)(8)(A), 
50.27 	as amended, if no irrevocable election of coverage has been made under section 3121(r) of 
50.28 	the Internal Revenue Code of 1986, as amended;
50.29 	(13) members of trades who are employed by the successor to the Metropolitan Waste 
50.30 	Control Commission, who have trade union pension plan coverage under a collective 
50.31 	bargaining agreement, and who are first employed after June 1, 1977;
51.1 	(14) foreign citizens who are employed under a work permit of less than three years or 
51.2 	under an H-1b visa or a J-1 visa that is initially valid for less than three years of employment, 
51.3 	unless notice of a visa extension which allows them to work for three or more years as of 
51.4 	the date that the extension is granted and is supplied to the retirement plan, in which case 
51.5 	the person is eligible for coverage from the date of the extension; and
51.6 	(15) reemployed annuitants of the general state employees retirement plan, the military 
51.7 	affairs personnel retirement plan, the transportation department pilots retirement plan, the 
51.8 	state fire marshal employees retirement plan, or the correctional state employees retirement 
51.9 	plan during the course of that reemployment.

51.10 	Sec. 65. Minnesota Statutes 2016, section 352.03, subdivision 1, is amended to read:
51.11 		Subdivision 1.Membership of board; election; term. (a) The policy-making function 
51.12 	of the system is vested in a board of 11 members known as the board of directors. This 
51.13 	board shall consist of:
51.14 	(1) three members appointed by the governor, one of whom must be a constitutional 
51.15 	officer or appointed state official and two of whom must be public members knowledgeable 
51.16 	in pension matters;
51.17 	(2) four state employees elected by active members and former members eligible for a 
51.18 	deferred annuity from the general state employees retirement plan, excluding employees 
51.19 	and deferred annuitants for whom a board member is designated;
51.20 	(3) one employee of the Metropolitan Council'sDepartment of Transportation's transit 
51.21 	operations or its successor agency designated by the executive committee of the labor 
51.22 	organization that is the exclusive bargaining agent representing employees of the transit 
51.23 	division;
51.24 	(4) one employee who is a member of the State Patrol retirement plan elected by active 
51.25 	members and former members eligible for a deferred annuity from that plan;
51.26 	(5) one employee who is a member of the correctional state employees retirement plan 
51.27 	established under this chapter elected by active members and former members eligible for 
51.28 	a deferred annuity from that plan; and
51.29 	(6) one retired employee of a plan included in the system, elected by disabled and retired 
51.30 	employees of the plans administered by the system at a time and in a manner determined 
51.31 	by the board.
52.1 	(b) The terms of the four elected state employees under paragraph (a), clause (2), must 
52.2 	be staggered, with two of the state employee board positions elected each biennium, whose 
52.3 	terms of office begin on the first Monday in May after their election. Elected members and 
52.4 	the appointed member of the Metropolitan Council'sDepartment of Transportation's transit 
52.5 	operations hold office for a term of four years and until their successors are elected or 
52.6 	appointed, and have qualified.
52.7 	(c) An employee or former employee of the system is not eligible for membership on 
52.8 	the board of directors. A state employee on leave of absence is not eligible for election or 
52.9 	reelection to membership on the board of directors.
52.10 	(d) The term of any board member who is on leave for more than six months 
52.11 	automatically ends on expiration of the term of office.

52.12 	Sec. 66. Minnesota Statutes 2016, section 352.04, subdivision 6, is amended to read:
52.13 		Subd. 6.Quasi-state agencies; employer contributions. For those of their employees 
52.14 	who are covered by the system, the State Horticultural Society, the Disabled American 
52.15 	Veterans, Department of Minnesota, Veterans of Foreign Wars, Department of Minnesota, 
52.16 	the Minnesota Crop Improvement Association, the Minnesota Historical Society, the Armory 
52.17 	Building Commission, the Minnesota Safety Council, the Metropolitan Council and any of 
52.18 	its statutory boards, the employer of persons described in section 352.01, subdivision 2a, 
52.19 	paragraph (a), clause (15), and any other agency employing employees covered by this 
52.20 	system, respectively, shall also pay into the retirement fund the amount required by 
52.21 	subdivision 3.

52.22 	Sec. 67. Minnesota Statutes 2016, section 352D.02, subdivision 1, is amended to read:
52.23 		Subdivision 1.Coverage.  (a) Employees enumerated in paragraph (c), clauses (2), (3), 
52.24 	(4), (6) to (14), and (16) to (18), if they are in the unclassified service of the state or 
52.25 	Metropolitan Council and are eligible for coverage under the general state employees 
52.26 	retirement plan under chapter 352, are participants in the unclassified program under this 
52.27 	chapter unless the employee gives notice to the executive director of the Minnesota State 
52.28 	Retirement System within one year following the commencement of employment in the 
52.29 	unclassified service that the employee desires coverage under the general state employees 
52.30 	retirement plan. For the purposes of this chapter, an employee who does not file notice with 
52.31 	the executive director is deemed to have exercised the option to participate in the unclassified 
52.32 	program.
53.1 	(b) Persons referenced in paragraph (c), clause (5), are participants in the unclassified 
53.2 	program under this chapter unless the person was eligible to elect different coverage under 
53.3 	section 3A.07 and elected retirement coverage by the applicable alternative retirement plan. 
53.4 	Persons referenced in paragraph (c), clause (15), are participants in the unclassified program 
53.5 	under this chapter for judicial employment in excess of the service credit limit in section 
53.6 	490.121, subdivision 22.
53.7 	(c) Enumerated employees and referenced persons are:
53.8 	(1) the governor, the lieutenant governor, the secretary of state, the state auditor, and 
53.9 	the attorney general;
53.10 	(2) an employee in the Office of the Governor, Lieutenant Governor, Secretary of State, 
53.11 	State Auditor, Attorney General;
53.12 	(3) an employee of the State Board of Investment;
53.13 	(4) the head of a department, division, or agency created by statute in the unclassified 
53.14 	service, an acting department head subsequently appointed to the position, or an employee 
53.15 	enumerated in section 15A.0815 or 15A.083, subdivision 4;
53.16 	(5) a member of the legislature;
53.17 	(6) an unclassified employee of the legislature or a commission or agency of the 
53.18 	legislature who is appointed without a limit on the duration of the employment or a temporary 
53.19 	legislative employee having shares in the supplemental retirement fund as a result of former 
53.20 	employment covered by this chapter, whether or not eligible for coverage under the 
53.21 	Minnesota State Retirement System;
53.22 	(7) a person who is employed in a position established under section 43A.08, subdivision 
53.23 	1, clause (3), or in a position authorized under a statute creating or establishing a department 
53.24 	or agency of the state, which is at the deputy or assistant head of department or agency or 
53.25 	director level;
53.26 	(8) the regional administrator, or executive director of the Metropolitan Council, general 
53.27 	counsel, division directors, operations managers, and other positions as designated by the 
53.28 	council, all of which may not exceed 27 positions at the council and the chair;
53.29 	(9) (8) the commissioner, deputy commissioner, and not to exceed nine positions of the 
53.30 	Minnesota Office of Higher Education in the unclassified service, as designated by the 
53.31 	Minnesota Office of Higher Education before January 1, 1992, or subsequently redesignated 
53.32 	with the approval of the board of directors of the Minnesota State Retirement System, unless 
54.1 	the person has elected coverage by the individual retirement account plan under chapter 
54.2 	354B;
54.3 	(10) (9) the clerk of the appellate courts appointed under article VI, section 2, of the 
54.4 	Constitution of the state of Minnesota, the state court administrator and judicial district 
54.5 	administrators;
54.6 	(11) (10) the chief executive officers of correctional facilities operated by the Department 
54.7 	of Corrections and of hospitals and nursing homes operated by the Department of Human 
54.8 	Services;
54.9 	(12) (11) an employee whose principal employment is at the state ceremonial house;
54.10 	(13) (12) an employee of the Agricultural Utilization Research Institute;
54.11 	(14) (13) an employee of the State Lottery who is covered by the managerial plan 
54.12 	established under section 43A.18, subdivision 3;
54.13 	(15) (14) a judge who has exceeded the service credit limit in section 490.121, subdivision 
54.14 	22;
54.15 	(16) (15) an employee of Enterprise Minnesota, Inc.;
54.16 	(17) (16) a person employed by the Minnesota State Colleges and Universities as faculty 
54.17 	or in an eligible unclassified administrative position as defined in section 354B.20, 
54.18 	subdivision 6, who was employed by the former state university or the former community 
54.19 	college system before May 1, 1995, and elected unclassified program coverage prior to May 
54.20 	1, 1995; and
54.21 	(18) (17) a person employed by the Minnesota State Colleges and Universities who was 
54.22 	employed in state service before July 1, 1995, who subsequently is employed in an eligible 
54.23 	unclassified administrative position as defined in section 354B.20, subdivision 6, and who 
54.24 	elects coverage by the unclassified program.

54.25 	Sec. 68. Minnesota Statutes 2016, section 353.64, subdivision 7a, is amended to read:
54.26 		Subd. 7a.Pension coverage for certain metropolitan transit police officers. A person 
54.27 	who is employed as a police officer by the Metropolitan Council before July 1, 2018, and 
54.28 	who is not eligible for coverage under the agreement with the Secretary of the federal 
54.29 	Department of Health and Human Services making the provisions of the federal Old Age, 
54.30 	Survivors, and Disability Insurance Act because the person's position is excluded from 
54.31 	application under United States Code, sections 418(d)(5)(A) and 418(d)(8)(D), and under 
54.32 	section 355.07, is a member of the public employees police and fire fund and is considered 
55.1 	to be a police officer within the meaning of this section. The Metropolitan Council shall 
55.2 	deduct the employee contribution from the salary of each police officer as required by 
55.3 	section 353.65, subdivision 2, shall make the employer contribution for each police officer 
55.4 	as required by section 353.65, subdivision 3, and shall meet the employer recording and 
55.5 	reporting requirements in section 353.65, subdivision 4.

55.6 	Sec. 69. Minnesota Statutes 2016, section 363A.44, subdivision 1, is amended to read:
55.7 		Subdivision 1.Scope. (a) No department, agency of the state, the Metropolitan Council,
55.8 	or an agency subject to section 473.143, subdivision 1, shall execute a contract for goods 
55.9 	or services or an agreement for goods or services in excess of $500,000 with a business that 
55.10 	has 40 or more full-time employees in this state or a state where the business has its primary 
55.11 	place of business on a single day during the prior 12 months, unless the business has an 
55.12 	equal pay certificate or it has certified in writing that it is exempt. A certificate is valid for 
55.13 	four years.
55.14 	(b) This section does not apply to a business with respect to a specific contract if the 
55.15 	commissioner of administration determines that application of this section would cause 
55.16 	undue hardship to the contracting entity. This section does not apply to a contract to provide 
55.17 	goods and services to individuals under chapters 43A, 62A, 62C, 62D, 62E, 256B, 256I, 
55.18 	256L, and 268A, with a business that has a license, certification, registration, provider 
55.19 	agreement, or provider enrollment contract that is prerequisite to providing those goods and 
55.20 	services. This section does not apply to contracts entered into by the State Board of 
55.21 	Investment for investment options under section 352.965, subdivision 4.

55.22 	Sec. 70. Minnesota Statutes 2016, section 373.40, subdivision 1, is amended to read:
55.23 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
55.24 	meanings given.
55.25 	(a) "Bonds" means an obligation as defined under section 475.51.
55.26 	(b) "Capital improvement" means acquisition or betterment of public lands, buildings, 
55.27 	or other improvements within the county for the purpose of a county courthouse, 
55.28 	administrative building, health or social service facility, correctional facility, jail, law 
55.29 	enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and 
55.30 	bridges, public works facilities, fairground buildings, and records and data storage facilities, 
55.31 	and the acquisition of development rights in the form of conservation easements under 
55.32 	chapter 84C. An improvement must have an expected useful life of five years or more to 
55.33 	qualify. "Capital improvement" does not include a recreation or sports facility building 
56.1 	(such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming pool, 
56.2 	exercise room or health spa), unless the building is part of an outdoor park facility and is 
56.3 	incidental to the primary purpose of outdoor recreation. For purposes of this section, "capital 
56.4 	improvement" includes expenditures for purposes described in this paragraph that have 
56.5 	been incurred by a county before approval of a capital improvement plan, if such expenditures 
56.6 	are included in a capital improvement plan approved on or before the date of the public 
56.7 	hearing under subdivision 2 regarding issuance of bonds for such expenditures.
56.8 	(c) "Metropolitan county" means a county located in the seven-county metropolitan area 
56.9 	as defined in section 473.121 or a county with a population of 90,000 or more.
56.10 	(d) "Population" means the population established by the most recent of the following 
56.11 	(determined as of the date the resolution authorizing the bonds was adopted):
56.12 	(1) the federal decennial census,
56.13 	(2) a special census conducted under contract by the United States Bureau of the Census, 
56.14 	or
56.15 	(3) a population estimate made either by the Metropolitan Council or by the state 
56.16 	demographer under section 4A.02.
56.17 	(e) "Qualified indoor ice arena" means a facility that meets the requirements of section 
56.18 	373.43.

56.19 	Sec. 71. Minnesota Statutes 2016, section 383A.81, subdivision 3, is amended to read:
56.20 		Subd. 3.Matching funds. In expending funds under this section, the county shall seek 
56.21 	matching funds from contamination cleanup funds administered by the commissioner of 
56.22 	the Department of Employment and Economic Development, the Metropolitan Council, 
56.23 	the federal government, the private sector, and any other source.

56.24 	Sec. 72. Minnesota Statutes 2016, section 383B.81, subdivision 3, is amended to read:
56.25 		Subd. 3.Matching funds. In expending funds under this section the county shall seek 
56.26 	matching funds from contamination cleanup funds administered by the commissioners of 
56.27 	the Department of Employment and Economic Development, the Metropolitan Council,
56.28 	the federal government, the private sector and any other source.

56.29 	Sec. 73. Minnesota Statutes 2016, section 398A.04, subdivision 1, is amended to read:
56.30 		Subdivision 1.General. An authority may exercise all the powers necessary or desirable 
56.31 	to implement the powers specifically granted in this section, and in exercising the powers 
57.1 	is deemed to be performing an essential governmental function and exercising a part of the 
57.2 	sovereign power of the state, and is a local government unit and political subdivision of the 
57.3 	state. Without limiting the generality of the foregoing, the authority may:
57.4 	(1) sue and be sued, have a seal, which may but need not be affixed to documents as 
57.5 	directed by the board, make and perform contracts, and have perpetual succession;
57.6 	(2) acquire real and personal property within or outside its taxing jurisdiction, by 
57.7 	purchase, gift, devise, condemnation, conditional sale, lease, lease purchase, or otherwise; 
57.8 	or for purposes, including the facilitation of an economic development project pursuant to 
57.9 	section 383B.81 or 469.091 or 469.175, subdivision 7, that also improve rail service;
57.10 	(3) hold, manage, control, sell, convey, lease, mortgage, or otherwise dispose of real or 
57.11 	personal property; and
57.12 	(4) make grants or otherwise appropriate funds to the Department of Transportation, the 
57.13 	Metropolitan Council, or any other state or local governmental unit for the purposes described 
57.14 	in subdivision 2 with respect to railroad facilities located or to be located within the 
57.15 	authority's jurisdiction, whether or not the facilities will be acquired, constructed, owned, 
57.16 	or operated by the authority.

57.17 	Sec. 74. Minnesota Statutes 2016, section 398A.04, subdivision 2a, is amended to read:
57.18 		Subd. 2a.Bus rapid transit development. A regional rail authority may exercise the 
57.19 	powers conferred under this section to: plan, establish, acquire, develop, purchase, enlarge, 
57.20 	extend, improve, maintain, equip, regulate, and protect; and pay costs of construction and 
57.21 	operation of a bus rapid transit system located within its county on transitways included in 
57.22 	and approved by the Metropolitan Council's 2030 Transportation Policy Plan. This 
57.23 	subdivision applies only to the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
57.24 	Scott, and Washington.

57.25 	Sec. 75. Minnesota Statutes 2016, section 414.02, subdivision 3, is amended to read:
57.26 		Subd. 3.Relevant factors, order. (a) In arriving at a decision, the chief administrative 
57.27 	law judge shall consider the following factors:
57.28 	(1) present population and number of households, past population and projected 
57.29 	population growth for the subject area;
57.30 	(2) quantity of land within the subject area; the natural terrain including recognizable 
57.31 	physical features, general topography, major watersheds, soil conditions and such natural 
57.32 	features as rivers, lakes and major bluffs;
58.1 	(3) present pattern of physical development, planning, and intended land uses in the 
58.2 	subject area including residential, industrial, commercial, agricultural, and institutional land 
58.3 	uses and the impact of the proposed action on those uses;
58.4 	(4) the present transportation network and potential transportation issues, including 
58.5 	proposed highway development;
58.6 	(5) land use controls and planning presently being utilized in the subject area, including 
58.7 	comprehensive plans, policies of the Metropolitan Council; and whether there are 
58.8 	inconsistencies between proposed development and existing land use controls;
58.9 	(6) existing levels of governmental services being provided to the subject area, including 
58.10 	water and sewer service, fire rating and protection, law enforcement, street improvements 
58.11 	and maintenance, administrative services, and recreational facilities and the impact of the 
58.12 	proposed action on the delivery of the services;
58.13 	(7) existing or potential environmental problems and whether the proposed action is 
58.14 	likely to improve or resolve these problems;
58.15 	(8) fiscal impact on the subject area and adjacent units of local government, including 
58.16 	present bonded indebtedness; local tax rates of the county, school district, and other 
58.17 	governmental units, including, where applicable, the net tax capacity of platted and unplatted 
58.18 	lands and the division of homestead and nonhomestead property; and other tax and 
58.19 	governmental aid issues;
58.20 	(9) relationship and effect of the proposed action on affected and adjacent school districts 
58.21 	and communities;
58.22 	(10) whether delivery of services to the subject area can be adequately and economically 
58.23 	delivered by the existing government;
58.24 	(11) analysis of whether necessary governmental services can best be provided through 
58.25 	the proposed action or another type of boundary adjustment;
58.26 	(12) degree of contiguity of the boundaries of the subject area and adjacent units of local 
58.27 	government; and
58.28 	(13) analysis of the applicability of the State Building Code.
58.29 	(b) Based upon these factors, the chief administrative law judge may order the 
58.30 	incorporation on finding that:
58.31 	(1) the property to be incorporated is now, or is about to become, urban or suburban in 
58.32 	character; or
59.1 	(2) that the existing township form of government is not adequate to protect the public 
59.2 	health, safety, and welfare; or
59.3 	(3) the proposed incorporation would be in the best interests of the area under 
59.4 	consideration.
59.5 	(c) The chief administrative law judge may deny the incorporation if the area, or a part 
59.6 	thereof, would be better served by annexation to an adjacent municipality.
59.7 	(d) The chief administrative law judge may alter the boundaries of the proposed 
59.8 	incorporation by increasing or decreasing the area to be incorporated so as to include only 
59.9 	that property which is now, or is about to become, urban or suburban in character, or may 
59.10 	exclude property that may be better served by another unit of government. The chief 
59.11 	administrative law judge may also alter the boundaries of the proposed incorporation so as 
59.12 	to follow visible, clearly recognizable physical features for municipal boundaries.
59.13 	(e) In all cases, the chief administrative law judge shall set forth the factors which are 
59.14 	the basis for the decision.
59.15 	(f) Notwithstanding any other provision of law to the contrary relating to the number of 
59.16 	wards which may be established, the chief administrative law judge may provide for election 
59.17 	of council members by wards, not less than three nor more than seven in number, whose 
59.18 	limits are prescribed in the chief administrative law judge's order upon a finding that area 
59.19 	representation is required to accord proper representation in the proposed incorporated area 
59.20 	because of uneven population density in different parts thereof or the existence of agricultural 
59.21 	lands therein which are in the path of suburban development, but after four years from the 
59.22 	effective date of an incorporation the council of the municipality may by resolution adopted 
59.23 	by a four-fifths vote abolish the ward system and provide for the election of all council 
59.24 	members at large as in other municipalities.
59.25 	(g) The chief administrative law judge's order for incorporation shall provide for the 
59.26 	election of municipal officers in accordance with section 414.09. The plan of government 
59.27 	shall be "Optional Plan A", provided that an alternate plan may be adopted pursuant to 
59.28 	section 412.551, at any time.
59.29 	(h) The ordinances of the township in which the new municipality is located shall continue 
59.30 	in effect until repealed by the governing body of the new municipality.

59.31 	Sec. 76. Minnesota Statutes 2016, section 414.031, subdivision 4, is amended to read:
59.32 		Subd. 4.Relevant factors, order. (a) In arriving at a decision, the presiding 
59.33 	administrative law judge shall consider the following sources and factors:
60.1 	(1) recordings and public documents from joint informational meetings under section 
60.2 	414.0333 relevant to other factors listed in this subdivision;
60.3 	(2) present population and number of households, past population and projected 
60.4 	population growth of the annexing municipality and subject area and adjacent units of local 
60.5 	government;
60.6 	(3) quantity of land within the subject area and adjacent units of local government; and 
60.7 	natural terrain including recognizable physical features, general topography, major 
60.8 	watersheds, soil conditions and such natural features as rivers, lakes and major bluffs;
60.9 	(4) degree of contiguity of the boundaries between the annexing municipality and the 
60.10 	subject area;
60.11 	(5) present pattern of physical development, planning, and intended land uses in the 
60.12 	subject area and the annexing municipality including residential, industrial, commercial, 
60.13 	agricultural and institutional land uses and the impact of the proposed action on those land 
60.14 	uses;
60.15 	(6) the present transportation network and potential transportation issues, including 
60.16 	proposed highway development;
60.17 	(7) land use controls and planning presently being utilized in the annexing municipality 
60.18 	and the subject area, including comprehensive plans for development in the area and plans 
60.19 	and policies of the Metropolitan Council, and whether there are inconsistencies between 
60.20 	proposed development and existing land use controls and the reasons therefore;
60.21 	(8) existing levels of governmental services being provided in the annexing municipality 
60.22 	and the subject area, including water and sewer service, fire rating and protection, law 
60.23 	enforcement, street improvements and maintenance, administrative services, and recreational 
60.24 	facilities and the impact of the proposed action on the delivery of said services;
60.25 	(9) the implementation of previous annexation agreements and orders;
60.26 	(10) existing or potential environmental problems and whether the proposed action is 
60.27 	likely to improve or resolve these problems;
60.28 	(11) plans and programs by the annexing municipality for providing needed and enhanced 
60.29 	governmental services to the subject area in a cost-effective and feasible manner within a 
60.30 	reasonable time from the date of the annexation;
61.1 	(12) an analysis of the fiscal impact on the annexing municipality, the subject area, and 
61.2 	adjacent units of local government, including net tax capacity and the present bonded 
61.3 	indebtedness, and the local tax rates of the county, school district, and township;
61.4 	(13) relationship and effect of the proposed action on affected and adjacent school 
61.5 	districts and communities;
61.6 	(14) adequacy of town government to deliver services to the subject area;
61.7 	(15) analysis of whether necessary governmental services can best be provided through 
61.8 	the proposed action or another type of boundary adjustment;
61.9 	(16) if only a part of a township is annexed, the ability of the remainder of the township 
61.10 	to continue or the feasibility of it being incorporated separately or being annexed to another 
61.11 	municipality; and
61.12 	(17) information received by the presiding administrative law judge from the tour required 
61.13 	under subdivision 3a.
61.14 	(b) Based upon the factors, the presiding administrative law judge may order the 
61.15 	annexation on finding:
61.16 	(1) that the subject area is now, or is about to become, urban or suburban in character;
61.17 	(2) that municipal government in the area proposed for annexation is required to protect 
61.18 	the public health, safety, and welfare; or
61.19 	(3) that the annexation would be in the best interest of the subject area.
61.20 	(c) If only a part of a township is to be annexed, the presiding administrative law judge 
61.21 	shall consider whether the remainder of the township can continue to carry on the functions 
61.22 	of government without undue hardship.
61.23 	(d) The presiding administrative law judge shall deny the annexation on finding that the 
61.24 	increase in revenues for the annexing municipality bears no reasonable relation to the 
61.25 	monetary value of benefits conferred upon the annexed area.
61.26 	(e) The presiding administrative law judge may deny the annexation on finding:
61.27 	(1) that annexation of all or a part of the property to an adjacent municipality would 
61.28 	better serve the interests of the residents of the property; or
61.29 	(2) that the remainder of the township would suffer undue hardship.
61.30 	(f) The presiding administrative law judge may alter the boundaries of the area to be 
61.31 	annexed by increasing or decreasing the area so as to include only that property which is 
62.1 	now or is about to become urban or suburban in character or to add property of such character 
62.2 	abutting the area proposed for annexation in order to preserve or improve the symmetry of 
62.3 	the area, or to exclude property that may better be served by another unit of government.
62.4 	(g) The presiding administrative law judge may also alter the boundaries of the proposed 
62.5 	annexation so as to follow visible, clearly recognizable physical features.
62.6 	(h) If the presiding administrative law judge determines that part of the area would be 
62.7 	better served by another municipality or township, the presiding administrative law judge 
62.8 	may initiate and approve annexation by conducting further hearings and issuing orders 
62.9 	pursuant to subdivisions 3 and 4.
62.10 	(i) In all cases, the presiding administrative law judge shall set forth the factors which 
62.11 	are the basis for the decision.

62.12 	Sec. 77. Minnesota Statutes 2016, section 462A.04, subdivision 1, is amended to read:
62.13 		Subdivision 1.Creation; members. There is created a public body corporate and politic 
62.14 	to be known as the "Minnesota Housing Finance Agency," which shall perform the 
62.15 	governmental functions and exercise the sovereign powers delegated to it in this chapter in 
62.16 	furtherance of the public policies and purposes declared in section 462A.02. The agency 
62.17 	shall consist of the state auditor and six public members appointed by the governor with 
62.18 	advice and consent of the senate. No more than three public members shall reside in the 
62.19 	metropolitan area of jurisdiction of the Metropolitan Council as provided defined in section 
62.20 	473.123, subdivision 1 473.121, subdivision 2, and no more than one public member shall 
62.21 	reside in any one of the development regions established under the provisions of sections 
62.22 	462.381 to 462.396. Each member shall hold office until a successor has been appointed 
62.23 	and has qualified. A certificate of appointment or reappointment of any member shall be 
62.24 	conclusive evidence of the due and proper appointment of the member.

62.25 	Sec. 78. Minnesota Statutes 2016, section 462A.07, subdivision 11, is amended to read:
62.26 		Subd. 11.Cooperative relationships. It may establish cooperative relationships with 
62.27 	such regional county and multicounty housing authorities as may be established, including 
62.28 	the Metropolitan Council, and may develop priorities for the utilization of agency resources 
62.29 	and assistance within a region in cooperation with regional county and multicounty housing 
62.30 	authorities.

63.1 	Sec. 79. Minnesota Statutes 2016, section 462A.222, subdivision 4, is amended to read:
63.2 		Subd. 4.Distribution plan. (a) By October 1, 1990, the Metropolitan Council, in 
63.3 	consultation with the agency and representatives of local government and housing and 
63.4 	redevelopment authorities, shall develop and submit to the agency a plan for allocating tax 
63.5 	credits in 1991 and thereafter in the metropolitan area, based on regional housing needs and 
63.6 	priorities. The agency may amend the distribution plan after consultation with the 
63.7 	Metropolitan Council, representatives of local governments, and housing and redevelopment 
63.8 	authorities.
63.9 	(b) By October 1, 1990, the agency, in consultation with representatives of local 
63.10 	government and housing and redevelopment authorities, shall develop a plan for allocating 
63.11 	tax credits in 1991 and thereafter in greater Minnesota, based on regional housing needs 
63.12 	and priorities. The agency may amend the distribution plan after consultation with 
63.13 	representatives of local governments and housing and redevelopment authorities.
63.14 	(c) In preparing the distribution plans, the Metropolitan Council and the agency shall 
63.15 	estimate the number of households in the metropolitan area and in greater Minnesota, 
63.16 	respectively, who are paying more than 50 percent of their income for rent and the cost of 
63.17 	providing sufficient rental or other assistance so that no household pays more than 50 percent 
63.18 	of its income for rent. In addition, the Metropolitan Council and the agency shall identify 
63.19 	the nature and scope of existing programs which primarily serve families at 60 percent of 
63.20 	the median income and individuals at 30 percent of the median income.

63.21 	Sec. 80. Minnesota Statutes 2016, section 462C.04, subdivision 2, is amended to read:
63.22 		Subd. 2.Program review. A public hearing shall be held on each program after one 
63.23 	publication of notice in a newspaper circulating generally in the city, at least 15 days before 
63.24 	the hearing. On or before the day on which notice of the public hearing is published, the 
63.25 	city shall submit the program to the metropolitan council, if the city is located in the 
63.26 	metropolitan area as defined in section 473.121, subdivision 2, or to the regional development 
63.27 	commission for the area in which the city is located, if any, for review and comment. The 
63.28 	appropriate reviewing agency shall comment on:
63.29 	(a) whether the program furthers local and regional housing policies and is consistent 
63.30 	with the Metropolitan Development Guide, if the city is located in the metropolitan area, 
63.31 	or adopted policies of the regional development commission; and
63.32 	(b) the compatibility of the program with the housing portion of the comprehensive plan 
63.33 	of the city, if any.
64.1 	Review of the program may be conducted either by the board of the reviewing agency 
64.2 	or by the staff of the agency. Any comment submitted by the reviewing agency to the city 
64.3 	must be presented to the body considering the proposed program at the public hearing held 
64.4 	on the program.
64.5 	A member or employee of the reviewing agency shall be permitted to present the 
64.6 	comments of the reviewing agency at the public hearing. After conducting the public hearing, 
64.7 	the program may be adopted with or without amendment, provided that any amendments 
64.8 	must not be inconsistent with the comments, if any, of the reviewing agency and must not 
64.9 	contain any material changes from the program submitted to the reviewing agency other 
64.10 	than changes in the financial aspects of any proposed issue of bonds or obligations. If any 
64.11 	material change other than a change in the financial aspects of a proposed issue of bonds 
64.12 	or obligations, or any change which is inconsistent with the comments of the reviewing 
64.13 	agency is adopted, the amended program shall be resubmitted to the appropriate reviewing 
64.14 	agency for review and comment, and a public hearing shall be held on the amended program 
64.15 	after one publication of notice in a newspaper circulating generally in the city at least 15 
64.16 	days before the hearing. The amended program shall be considered after the public hearing 
64.17 	in the same manner as consideration of the initial program.

64.18 	Sec. 81. Minnesota Statutes 2016, section 462C.071, subdivision 2, is amended to read:
64.19 		Subd. 2.Limitation; origination period. During the first ten months of an origination 
64.20 	period, a city may make loans financed with proceeds of mortgage bonds for the purchase 
64.21 	of existing housing. Loans financed with the proceeds of mortgage bonds for new housing 
64.22 	in the metropolitan area may be made during the first ten months of an origination period 
64.23 	only if at least one of the following conditions is met:
64.24 	(1) the new housing is located in a redevelopment area;
64.25 	(2) the new housing is replacing a structurally substandard structure or structures;
64.26 	(3) the new housing is located on a parcel purchased by the city or conveyed to the city 
64.27 	under section 282.01, subdivision 1; or
64.28 	(4) the new housing is part of a housing affordability initiative, other than those financed 
64.29 	with the proceeds from the sale of bonds, in which federal, state, or local assistance is used 
64.30 	to substantially improve the terms of the financing or to substantially write down the purchase 
64.31 	price of the new housing; or.
64.32 	(5) the new housing is located in a city that has entered into a housing affordability 
64.33 	agreement with the metropolitan council.
65.1 	Upon expiration of the first ten-month period, a city may make loans financed with the 
65.2 	proceeds of mortgage bonds for the purchase of new and existing housing.

65.3 	Sec. 82. Minnesota Statutes 2016, section 465.82, subdivision 1, is amended to read:
65.4 		Subdivision 1.Adoption and state agency review. Each governing body that proposes 
65.5 	to take part in a combination under sections 465.81 to 465.86 must by resolution adopt a 
65.6 	plan for cooperation and combination. The plan must address each item in this section. The 
65.7 	plan must be specific for any item that will occur within three years and may be general or 
65.8 	set forth alternative proposals for an item that will occur more than three years in the future. 
65.9 	For a metropolitan area local government unit, the plan must be submitted to the Metropolitan 
65.10 	Council for review and comment. The council may point out any resources or technical 
65.11 	assistance it may be able to provide a governing body submitting a plan under this 
65.12 	subdivision. Significant modifications and specific resolutions of items must be submitted 
65.13 	to the council, if appropriate, for review and comment. In the official newspaper of each 
65.14 	local government unit proposing to take part in the combination, the governing body shall 
65.15 	publish at least a summary of the adopted plans,and each significant modification and 
65.16 	resolution of items, and, if appropriate, the results of each council review and comment. If 
65.17 	a territory of a unit is to be apportioned between or among two or more units contiguous to 
65.18 	the unit that is to be apportioned, the plan must specify the area that will become a part of 
65.19 	each remaining unit.

65.20 	Sec. 83. Minnesota Statutes 2016, section 469.174, subdivision 26, is amended to read:
65.21 		Subd. 26.Population. "Population" means the population established as of December 
65.22 	31 by the most recent of the following:
65.23 	(1) the federal census;
65.24 	(2) a special census conducted under contract with the United States Bureau of the 
65.25 	Census; and
65.26 	(3) a population estimate made by the Metropolitan Council; and
65.27 	(4)(3) a population estimate made by the state demographer under section 4A.02.
65.28 	The population so established applies to the following calendar year.

65.29 	Sec. 84. Minnesota Statutes 2016, section 469.351, subdivision 2, is amended to read:
65.30 		Subd. 2.Designation of transit improvement areas. A transit improvement area must 
65.31 	increase the effectiveness of a transit project by incorporating one or more public transit 
66.1 	modes with commercial, residential, or mixed-use development and by providing for safe 
66.2 	and pedestrian-friendly use. The commissioner, in consultation with affected state and 
66.3 	regional agencies, must designate transit improvement areas that meet the objectives under 
66.4 	this subdivision. Affected state and regional agencies include, but are not limited to, the 
66.5 	Minnesota Department of Transportation,and the Minnesota Housing Finance Agency, and 
66.6 	the Metropolitan Council for transit improvement areas located in the seven-county 
66.7 	metropolitan region. To be eligible for designation, an applicant must submit a transit area 
66.8 	improvement plan according to the requirements and timelines established by the 
66.9 	commissioner. At a minimum, the plan must include the information specified under 
66.10 	subdivision 3. The commissioner may modify an applicant's plan to better achieve the 
66.11 	objectives of transit improvement areas. The commissioner must notify applicants of the 
66.12 	designations and must provide a statement of any changes to an applicant's plan with 
66.13 	justification for all changes.

66.14 	Sec. 85. Minnesota Statutes 2016, section 471.425, subdivision 1, is amended to read:
66.15 		Subdivision 1.Definitions. For the purposes of this section, the following terms have 
66.16 	the meanings here given them.
66.17 	(a) "Contract" means any written legal document or documents signed by both parties 
66.18 	in which the terms and conditions of any interest or other penalty for late payments are 
66.19 	clearly stated.
66.20 	(b) "Date of receipt" means the completed delivery of the goods or services or the 
66.21 	satisfactory installation, assembly or specified portion thereof, or the receipt of the invoice 
66.22 	for the delivery of the goods or services, whichever is later.
66.23 	(c) "Governing board" means the elected or appointed board of the municipality and 
66.24 	includes, but is not limited to, city councils, town boards and county boards.
66.25 	(d) "Municipality" means any home rule charter or statutory city, county, town, school 
66.26 	district, political subdivision or agency of local government. "Municipality" means the 
66.27 	Metropolitan Council or any board oran agency created under chapter 473.

66.28 	Sec. 86. Minnesota Statutes 2016, section 471.9997, is amended to read:
66.29 	471.9997 FEDERALLY ASSISTED RENTAL HOUSING; IMPACT STATEMENT.
66.30 	At least 12 months before termination of participation in a federally assisted rental 
66.31 	housing program, including project-based Section 8 and Section 236 rental housing, the 
66.32 	owner of the federally assisted rental housing must submit a statement regarding the impact 
67.1 	of termination on the residents of the rental housing to the governing body of the local 
67.2 	government unit in which the housing is located. The impact statement must identify the 
67.3 	number of units that will no longer be subject to rent restrictions imposed by the federal 
67.4 	program, the estimated rents that will be charged as compared to rents charged under the 
67.5 	federal program, and actions the owner will take to assist displaced tenants in obtaining 
67.6 	other housing. A copy of the impact statement must be provided to each resident of the 
67.7 	affected building,and to the Minnesota Housing Finance Agency, and, if the property is 
67.8 	located in the metropolitan area as defined in section 473.121, subdivision 2, the Metropolitan 
67.9 	Council.

67.10 	Sec. 87. Minnesota Statutes 2016, section 473.121, subdivision 2, is amended to read:
67.11 		Subd. 2.Metropolitan area or area. "Metropolitan area" or "area" means the area over 
67.12 	which the Metropolitan Council has jurisdiction, including only the counties of Anoka; 
67.13 	Carver; Dakota excluding the city of Northfield; Hennepin excluding the cities of Hanover 
67.14 	and Rockford; Ramsey; Scott excluding the city of New Prague; and Washington.

67.15 	Sec. 88. Minnesota Statutes 2016, section 473.142, is amended to read:
67.16 	473.142 SMALL BUSINESSES.
67.17 	(a) The Metropolitan Council and agencies specified in section 473.143, subdivision 1, 
67.18 	may award up to a six percent preference in the amount bid for specified goods or services 
67.19 	to small targeted group businesses and veteran-owned small businesses designated under 
67.20 	section 16C.16.
67.21 	(b) The council and Each agency specified in section 473.143, subdivision 1, may 
67.22 	designate a purchase of goods or services for award only to small targeted group businesses 
67.23 	designated under section 16C.16 if the council or agency determines that at least three small 
67.24 	targeted group businesses are likely to bid. The council and Each agency specified in section 
67.25 	473.143, subdivision 1, may designate a purchase of goods or services for award only to 
67.26 	veteran-owned small businesses designated under section 16C.16 if the council or agency 
67.27 	determines that at least three veteran-owned small businesses are likely to bid.
67.28 	(c) The council and Each agency specified in section 473.143, subdivision 1, as a 
67.29 	condition of awarding a construction contract or approving a contract for consultant, 
67.30 	professional, or technical services, may set goals that require the prime contractor to 
67.31 	subcontract a portion of the contract to small targeted group businesses and veteran-owned 
67.32 	small businesses designated under section 16C.16. The council or agency must establish a 
67.33 	procedure for granting waivers from the subcontracting requirement when qualified small 
68.1 	targeted group businesses and veteran-owned small businesses are not reasonably available. 
68.2 	The council or agency may establish financial incentives for prime contractors who exceed 
68.3 	the goals for use of subcontractors and financial penalties for prime contractors who fail to 
68.4 	meet goals under this paragraph. The subcontracting requirements of this paragraph do not 
68.5 	apply to prime contractors who are small targeted group businesses and veteran-owned 
68.6 	small businesses. At least 75 percent of the value of the subcontracts awarded to small 
68.7 	targeted group businesses under this paragraph must be performed by the business to which 
68.8 	the subcontract is awarded or by another small targeted group business. At least 75 percent 
68.9 	of the value of the subcontracts awarded to veteran-owned small businesses under this 
68.10 	paragraph must be performed by the business to which the subcontract is awarded or another 
68.11 	veteran-owned small business.
68.12 	(d) The council and Each agency listed in section 473.143, subdivision 1, areis 
68.13 	encouraged to purchase from small targeted group businesses and veteran-owned small 
68.14 	businesses designated under section 16C.16 when making purchases that are not subject to 
68.15 	competitive bidding procedures.
68.16 	(e) The council and Each agency may adopt rules to implement this section.
68.17 	(f) Each council or agency contract must require the prime contractor to pay any 
68.18 	subcontractor within ten days of the prime contractor's receipt of payment from the council 
68.19 	or agency for undisputed services provided by the subcontractor. The contract must require 
68.20 	the prime contractor to pay interest of 1-1/2 percent per month or any part of a month to 
68.21 	the subcontractor on any undisputed amount not paid on time to the subcontractor. The 
68.22 	minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. 
68.23 	For an unpaid balance of less than $100, the prime contractor shall pay the actual penalty 
68.24 	due to the subcontractor. A subcontractor who prevails in a civil action to collect interest 
68.25 	penalties from a prime contractor must be awarded its costs and disbursements, including 
68.26 	attorney fees, incurred in bringing the action.
68.27 	(g) This section does not apply to procurement financed in whole or in part with federal 
68.28 	funds if the procurement is subject to federal disadvantaged, minority, or women business 
68.29 	enterprise regulations. The council and Each agency shall report to the commissioner of 
68.30 	administration on compliance with this section. The information must be reported at the 
68.31 	time and in the manner requested by the commissioner.

68.32 	Sec. 89. Minnesota Statutes 2016, section 473.1425, is amended to read:
68.33 	473.1425 WORKING CAPITAL FUND.
69.1 	The Metropolitan Council or A metropolitan agency defined in section 473.121, 
69.2 	subdivision 5a, to the extent allowed by other law or contract, may grant available money 
69.3 	that has been appropriated for socially or economically disadvantaged business programs 
69.4 	to a guaranty fund administered by a nonprofit organization that makes or guarantees working 
69.5 	capital loans to businesses owned and operated by socially or economically disadvantaged 
69.6 	persons as defined in Code of Federal Regulations, title 49, section 23.5. The purpose of 
69.7 	loans made or guaranteed by the organization must be to provide short-term working capital 
69.8 	to enable eligible businesses to be awarded contracts for goods and services or for 
69.9 	construction related services from government agencies.

69.10 	Sec. 90. Minnesota Statutes 2016, section 473.143, is amended to read:
69.11 	473.143 AFFIRMATIVE ACTION PLANS.
69.12 		Subdivision 1.Application. For purposes of this section, "agency" means a metropolitan 
69.13 	agency as defined in section 473.121, except the Metropolitan Parks and Open Space 
69.14 	Commission. Agency also means the Metropolitan Mosquito Control Commission. For 
69.15 	purposes of this section, "commissioner" means the commissioner of the state Department 
69.16 	of Management and Budget.
69.17 		Subd. 2.Development and contents. The council and Each agency shall develop an 
69.18 	affirmative action plan and submit its plan to the commissioner for approval. The 
69.19 	commissioner may not approve a plan unless the commissioner determines that it will be 
69.20 	effective in assuring that employment positions are equally accessible to all qualified persons, 
69.21 	in eliminating the underutilization of qualified members of protected groups, in providing 
69.22 	a supportive work environment to all employees, regardless of race, religion, sex, national 
69.23 	origin, or disability, and in dealing with discrimination complaints. For purposes of this 
69.24 	section, "protected group" has the meaning given it in section 43A.02, subdivision 33. A 
69.25 	plan must contain at least the elements required in this subdivision.
69.26 	(a) It must identify protected groups that are underrepresented in the council's or agency's 
69.27 	work force.
69.28 	(b) It must designate a person responsible for directing and implementing the affirmative 
69.29 	action program and assign the specific responsibilities and duties of that person. The person 
69.30 	responsible for implementing the program shall report directly to the council's or agency's 
69.31 	chief operating officer regarding the person's affirmative action duties. The person responsible 
69.32 	for the affirmative action program shall review examination and other selection criteria to 
69.33 	assure compliance with law. This person shall be involved in the filling of all vacancies in 
70.1 	the council or agency work force, to the extent necessary to facilitate attainment of affirmative 
70.2 	action goals.
70.3 	(c) It must describe the methods by which the plan will be communicated to employees 
70.4 	and to other persons.
70.5 	(d) It must describe methods for recruiting members of protected groups. These methods 
70.6 	may include internship programs, cooperation with union apprenticeship programs, and 
70.7 	other steps necessary to expand the number of protected group members in applicant pools.
70.8 	(e) It must describe internal procedures in accordance with this paragraph for processing 
70.9 	complaints of alleged discrimination from job applicants and employees. The procedures 
70.10 	must provide for an initial determination of whether the complaint is properly a discrimination 
70.11 	complaint subject to the procedure under the affirmative action plan. Complaints filed under 
70.12 	the discrimination procedures that allege reprisals against an employee for opposing a 
70.13 	forbidden practice or for filing a charge, testifying, or participating in an investigation, 
70.14 	proceeding, or hearing relating to a forbidden practice are appealable to the chief operating 
70.15 	officer of the council or agency. Procedures under this paragraph must be distinct from any 
70.16 	procedures available under a union contract or personnel policy for nondiscrimination 
70.17 	complaints. Use of procedures developed under this paragraph is not a prerequisite to filing 
70.18 	charges with a governmental enforcement agency, nor does it limit a person's right to file 
70.19 	these charges.
70.20 	(f) It must set goals and timetables to eliminate underutilization of members of each 
70.21 	protected group in the council or agency work force.
70.22 	(g) It must provide a plan for retaining and promoting protected group members in the 
70.23 	council or agency work force. This plan should encourage training opportunities for protected 
70.24 	group members, to the extent necessary to eliminate underutilization in specific parts of the 
70.25 	work force.
70.26 	(h) It must describe methods of auditing, evaluating, and reporting program success, 
70.27 	including a procedure that requires a preemployment review of all hiring decisions for 
70.28 	occupational groups with unmet affirmative action goals.
70.29 	(i) It must provide for training of management and supervisory personnel in 
70.30 	implementation of the plan and in dealing with alleged acts of discrimination in the 
70.31 	workplace.
70.32 	(j) It must provide for periodic surveying of the council or agency work force to determine 
70.33 	employee attitudes toward implementation of the plan.
71.1 	(k) It must provide for creation of an employee committee to advise on implementation 
71.2 	of the plan and on any changes needed in the plan.
71.3 		Subd. 3.Harassment. The council and Each agency shall adopt written policies 
71.4 	forbidding harassment based on sex, disability, or race in their workplaces and establishing 
71.5 	implementation plans and grievance procedures to deal with complaints of harassment based 
71.6 	on sex, disability, or race.
71.7 		Subd. 4.Performance evaluation. The evaluation of the performance of each supervisory 
71.8 	and managerial employee of the council and the agencies must include evaluation of the 
71.9 	person's performance in implementing the council's or agency's affirmative action plan and 
71.10 	in preventing forbidden discrimination in the workplace.
71.11 		Subd. 5.Report. By March 1 each year, the commissioner shall report to the legislature 
71.12 	on affirmative action progress of the council and of each agency. The report must include:
71.13 	(1) an audit of the record of the council and each agency to determine compliance with 
71.14 	affirmative action goals and to evaluate overall progress in attainment of overall affirmative 
71.15 	action objectives;
71.16 	(2) if the council or any agency has failed to make satisfactory progress toward its 
71.17 	affirmative action goals, a list of unmet goals and an analysis of why the failure occurred;
71.18 	(3) a summary of all personnel actions taken by the council and each agency during the 
71.19 	past calendar year, categorized by occupational group, protected group status, and full-time, 
71.20 	part-time, temporary, and seasonal status; and
71.21 	(4) a summary of discrimination complaints and lawsuits against the council and each 
71.22 	agency filed or resolved during the past calendar year, including the basis for the complaints 
71.23 	and lawsuits.
71.24 	For purposes of this subdivision, "personnel action" means a new hire, promotion, 
71.25 	transfer, demotion, layoff, recall from layoff, suspension with or without pay, letter of 
71.26 	reprimand, involuntary termination, other disciplinary action, and voluntary termination.
71.27 	The council and Each agency shall report to the commissioner all information that the 
71.28 	commissioner requests to make the report required by this subdivision. In providing this 
71.29 	information, the council and agencies are not required to reveal information that is not public 
71.30 	data under chapter 13.
71.31 	The council and Each agency shall submit these reports at the time and in the manner 
71.32 	requested by the commissioner. The commissioner shall report to the legislature on the 
71.33 	failure of the council or an agency to file the required report in a timely manner.
72.1 		Subd. 6.Coordination. The commissioner or a designee shall meet with affirmative 
72.2 	action officers of the council and all of the agencies to share successful techniques and 
72.3 	foster innovative means to implement affirmative action plans and eliminate discrimination 
72.4 	in the workplace.
72.5 		Subd. 7.Coordination with legislature. The council and Each agency shall facilitate 
72.6 	legislative oversight of equal opportunity practices by providing the legislature access, 
72.7 	including access to computerized records if compatible systems exist, to public data 
72.8 	maintained by the agency. The council and agencies must not provide access to information 
72.9 	that is not public data as defined in section 13.02, subdivision 8a.

72.10 	Sec. 91. Minnesota Statutes 2016, section 473.144, is amended to read:
72.11 	473.144 CERTIFICATES OF COMPLIANCE FOR CONTRACTS.
72.12 	(a) For all contracts for goods and services in excess of $100,000, neither the council 
72.13 	nor anno agency listed in section 473.143, subdivision 1, shall accept any bid or proposal 
72.14 	for a contract or agreement from any business having more than 40 full-time employees 
72.15 	within this state on a single working day during the previous 12 months, unless the firm or 
72.16 	business has an affirmative action plan for the employment of minority persons, women, 
72.17 	and qualified disabled individuals submitted to the commissioner of human rights for 
72.18 	approval. Neither the council nor anNo agency listed in section 473.143, subdivision 1, 
72.19 	shall execute the contract or agreement until the affirmative action plan has been approved 
72.20 	by the commissioner of human rights. Receipt of a certificate of compliance from the 
72.21 	commissioner of human rights signifies that a business has an approved affirmative action 
72.22 	plan. A certificate is valid for two years. Section 363A.36 governs revocation of certificates. 
72.23 	The rules adopted by the commissioner of human rights under section 363A.37 apply to 
72.24 	this section.
72.25 	(b) This paragraph applies to a contract for goods or services in excess of $100,000 to 
72.26 	be entered into between the council or an agency listed in section 473.143, subdivision 1, 
72.27 	and a business that is not subject to paragraph (a), but that has more than 40 full-time 
72.28 	employees on a single working day during the previous 12 months in the state where the 
72.29 	business has its primary place of business. The council or the agency may not execute a 
72.30 	contract or agreement with a business covered by this paragraph unless the business has a 
72.31 	certificate of compliance issued by the commissioner under paragraph (a) or the business 
72.32 	certifies to the contracting agency that it is in compliance with federal affirmative action 
72.33 	requirements.

73.1 	Sec. 92. Minnesota Statutes 2016, section 473.145, is amended to read:
73.2 	473.145 DEVELOPMENT GUIDE.
73.3 	The Metropolitan Councilcommissioner of administration shall prepare and adopt, after 
73.4 	appropriate study and such public hearings as may be necessary, a comprehensive 
73.5 	development guide for the metropolitan area. It shall consist of a compilation of policy 
73.6 	statements, goals, standards, programs, and maps prescribing guides for the orderly and 
73.7 	economical development, public and private, of the metropolitan area. The comprehensive 
73.8 	development guide shall recognize and encompass physical, social, or economic needs of 
73.9 	the metropolitan area and those future developments which will have an impact on the entire 
73.10 	area including but not limited to such matters as land use, parks and open space land needs, 
73.11 	the necessity for and location of airports, highways, transit facilities, public hospitals, 
73.12 	libraries, schools, and other public buildings.

73.13 	Sec. 93. Minnesota Statutes 2016, section 473.146, subdivision 1, is amended to read:
73.14 		Subdivision 1.Requirement. The councilcommissioner of administration shall adopt 
73.15 	a long-range comprehensive policy plan for transportation and wastewater treatment. The 
73.16 	plans must substantially conform to all policy statements, purposes, goals, standards, and 
73.17 	maps in the development guide developed and adopted by the council required under this 
73.18 	chapter. Each policy plan must include, to the extent appropriate to the functions, services, 
73.19 	and systems covered, the following:
73.20 	(1) forecasts of changes in the general levels and distribution of population, households, 
73.21 	employment, land uses, and other relevant matters, for the metropolitan area and appropriate 
73.22 	subareas;
73.23 	(2) a statement of issues, problems, needs, and opportunities with respect to the functions, 
73.24 	services, and systems covered;
73.25 	(3) a statement of the council's goals, objectives, and priorities with respect to the 
73.26 	functions, services, and systems covered, addressing areas and populations to be served, 
73.27 	the levels, distribution, and staging of services; a general description of the facility systems 
73.28 	required to support the services; the estimated cost of improvements required to achieve 
73.29 	the council's goals for the regional systems, including an analysis of what portion of the 
73.30 	funding for each improvement is proposed to come from the state, Metropolitan Council 
73.31 	levies, and cities, counties, and towns in the metropolitan area, respectively, and other 
73.32 	similar matters;
73.33 	(4) a statement of policies to effectuate the council's goals, objectives, and priorities;
74.1 	(5) a statement of the fiscal implications of the council's plan, including a statement of: 
74.2 	(i) the resources available under existing fiscal policy; (ii) the adequacy of resources under 
74.3 	existing fiscal policy and any shortfalls and unattended needs; (iii) additional resources, if 
74.4 	any, that are or may be required to effectuate the council'scommissioner of administration's 
74.5 	goals, objectives, and priorities; and (iv) any changes in existing fiscal policy, on regional 
74.6 	revenues and intergovernmental aids respectively, that are expected or that the council has
74.7 	recommended or may recommend in the plan;
74.8 	(6) a statement of the relationship of the policy plan to other policy plans and chapters 
74.9 	of the Metropolitan development guide; and
74.10 	(7) a statement of the relationships to local comprehensive plans prepared under sections 
74.11 	473.851 to 473.871; and
74.12 	(8) additional general information as may be necessary to develop the policy plan or as 
74.13 	may be required by the laws relating to the metropolitan agency and function covered by 
74.14 	the policy plan.

74.15 	Sec. 94. Minnesota Statutes 2016, section 473.146, subdivision 3, is amended to read:
74.16 		Subd. 3.Development guide: Transportation. The transportation chapter must include 
74.17 	policies relating to all transportation forms and be designed to promote the legislative 
74.18 	determinations, policies, and goals set forth in section 473.371. In addition to the 
74.19 	requirements of subdivision 1 regarding the contents of the policy plan, the nontransit 
74.20 	element of the transportation chapter must include the following:
74.21 	(1) a statement of the needs and problems of the metropolitan area with respect to the 
74.22 	functions covered, including the present and prospective demand for and constraints on 
74.23 	access to regional business concentrations and other major activity centers and the constraints 
74.24 	on and acceptable levels of development and vehicular trip generation at such centers;
74.25 	(2) the objectives of and the policies to be forwarded by the policy plan;
74.26 	(3) a general description of the physical facilities and services to be developed;
74.27 	(4) a statement as to the general location of physical facilities and service areas;
74.28 	(5) a general statement of timing and priorities in the development of those physical 
74.29 	facilities and service areas;
74.30 	(6) a detailed statement, updated every two years, of timing and priorities for 
74.31 	improvements and expenditures needed on the metropolitan highway system;
75.1 	(7) a general statement on the level of public expenditure appropriate to the facilities; 
75.2 	and
75.3 	(8) a long-range assessment of air transportation trends and factors that may affect airport 
75.4 	development in the metropolitan area and policies and strategies that will ensure a 
75.5 	comprehensive, coordinated, and timely investigation and evaluation of alternatives for 
75.6 	airport development.
75.7 	The councilcommissioner of administration shall develop the nontransit element in 
75.8 	consultation with the transportation advisory board and the Metropolitan Airports 
75.9 	Commission and cities having an airport located within or adjacent to its corporate 
75.10 	boundaries. The council shall also take, taking into consideration the airport development 
75.11 	and operations plans and activities of the commission. The councilcommissioner of 
75.12 	administration shall transmit the results to the state Department of Transportation.

75.13 	Sec. 95. Minnesota Statutes 2016, section 473.146, subdivision 4, is amended to read:
75.14 		Subd. 4.Transportation planning. (a) The Metropolitan Council is the designated
75.15 	commissioner and affected local governments shall cooperate to designate a planning agency 
75.16 	for any long-range comprehensive transportation planning required by section 134 of the 
75.17 	Federal Highway Act of 1962, Section 4 of Urban Mass Transportation Act of 1964 and 
75.18 	Section 112 of Federal Aid Highway Act of 1973 and other federal transportation laws. The 
75.19 	council designated planning agency shall assure administration and coordination of 
75.20 	transportation planning with appropriate state, regional and other agencies, counties, and 
75.21 	municipalities.
75.22 	(b) The council designated planning agency shall establish an advisory body consisting 
75.23 	of citizens and representatives of municipalities, counties, and state agencies in fulfillment 
75.24 	of the planning responsibilities of the council designated planning agency. The membership 
75.25 	of the advisory body must consist of:
75.26 	(1) the commissioner of transportation or the commissioner's designee;
75.27 	(2) the commissioner of the Pollution Control Agency or the commissioner's designee;
75.28 	(3) one member of the Metropolitan Airports Commission appointed by the commission;
75.29 	(4) one person appointed by the council commissioner to represent nonmotorized 
75.30 	transportation;
75.31 	(5) one person appointed by the commissioner of transportation to represent the freight 
75.32 	transportation industry;
76.1 	(6) two persons appointed by the council commissioner to represent public transit;
76.2 	(7) ten elected officials of cities within the metropolitan area, including one representative 
76.3 	from each first-class city, appointed by the Association of Metropolitan Municipalities;
76.4 	(8) one member of the county board of each county in the seven-county metropolitan 
76.5 	area, appointed by the respective county boards; and
76.6 	(9) eight citizens appointed by the council commissioner, one from each council precinct
76.7 	Metropolitan Airports Commission District;
76.8 	(10) one elected official from a city participating in the replacement service program 
76.9 	under section 473.388, appointed by the Suburban Transit Association; and.
76.10 	(11) one member of the council, appointed by the council.
76.11 	(c) The council designated planning agency shall appoint a chair from among the members 
76.12 	of the advisory body.

76.13 	Sec. 96. Minnesota Statutes 2016, section 473.146, is amended by adding a subdivision 
76.14 	to read:
76.15 		Subd. 5.Consultation with agency; predrafting notice. (a) In preparing or amending 
76.16 	the policy plan, the commissioner of administration shall consult with and make use of the 
76.17 	expertise of the affected metropolitan agency. The agency shall cooperate with the 
76.18 	commissioner and make its records, studies, plans, and other information available to the 
76.19 	commissioner.
76.20 	(b) Before beginning to prepare a substantial revision of a policy plan, the office shall 
76.21 	publish notice and request comments from the public. At least 90 days before publication 
76.22 	of the predrafting notice, the office shall submit a draft of the notice to the affected 
76.23 	metropolitan agency for review and comment. The predrafting notice must include a 
76.24 	statement of the subjects expected to be covered by the policy and implementation plans; 
76.25 	a summary of important problems, issues, and matters that are expected to be addressed in 
76.26 	the plans; and a summary of the studies and other information required as the basis of the 
76.27 	plans. All interested persons must be afforded an opportunity to submit data or views on 
76.28 	the predrafting notice, either orally or in writing.
76.29 	(c) Before adopting a policy plan or substantial revision, the commissioner shall submit 
76.30 	the proposed plan to the affected metropolitan agency for its review, and the agency shall 
76.31 	report its comments to the commissioner within 90 days.

77.1 	Sec. 97. Minnesota Statutes 2016, section 473.146, is amended by adding a subdivision 
77.2 	to read:
77.3 		Subd. 6.Hearing; adoption. The office shall hold a public hearing on the proposed 
77.4 	policy plan at a time and place in the metropolitan area determined by the commissioner. 
77.5 	Not less than 15 days before the hearing, the commissioner shall publish notice in a 
77.6 	newspaper or newspapers having general circulation in the metropolitan area, stating the 
77.7 	date, time, and place of hearing, and the place where the proposed policy plan and agency 
77.8 	comments may be examined by any interested person. At any hearing, interested persons 
77.9 	must be permitted to present their views on the policy plan, and the hearing may be continued 
77.10 	from time to time. After receipt of the agency's report and the hearing, the commissioner 
77.11 	may revise the proposed plan giving appropriate consideration to all comments received 
77.12 	and thereafter shall adopt the plan by resolution.

77.13 	Sec. 98. Minnesota Statutes 2016, section 473.146, is amended by adding a subdivision 
77.14 	to read:
77.15 		Subd. 7.Effect. Adopted policy plans must be followed by the office and the affected 
77.16 	metropolitan agency.

77.17 	Sec. 99. Minnesota Statutes 2016, section 473.146, is amended by adding a subdivision 
77.18 	to read:
77.19 		Subd. 8.Amendment. An amendment to a policy plan may be initiated by the 
77.20 	commissioner or by an affected metropolitan agency. At least every five years, the 
77.21 	commissioner shall engage in a comprehensive review of the policy plan and revise the plan 
77.22 	as necessary. The commissioner shall amend a policy plan in accordance with the procedures 
77.23 	established in this section.

77.24 	Sec. 100. Minnesota Statutes 2016, section 473.8011, is amended to read:
77.25 	473.8011 METROPOLITAN AGENCY RECYCLING GOAL.
77.26 	By December 31, 1993, the Metropolitan Council, each metropolitan agency as defined 
77.27 	in section 473.121, and the Metropolitan Mosquito Control District established in section 
77.28 	473.702 shall recycle at least 40 percent by weight of the solid waste generated by their 
77.29 	offices or other operations. The commissioner shall provide information and technical 
77.30 	assistance to the council, agencies, and the district to implement effective recycling programs.
77.31 	By August 1 of each year, the council, each agency, and the district shall submit to the 
77.32 	Pollution Control Agency a report for the previous fiscal year describing recycling rates, 
78.1 	specified by the county in which the council, agency, or operation is located, and progress 
78.2 	toward meeting the recycling goal. The Pollution Control Agency shall incorporate the 
78.3 	recycling rates reported in the respective county's recycling rates for the previous fiscal 
78.4 	year.
78.5 	If the goal is not met, the council, agency, or district must include in its 1994 report 
78.6 	reasons for not meeting the goal and a plan for meeting it in the future.

78.7 	Sec. 101. Minnesota Statutes 2016, section 473.910, subdivision 3, is amended to read:
78.8 		Subd. 3.Membership. The board shall be composed of 1312 members. Three members 
78.9 	must be appointed by the Minneapolis City Council from among its members; three by the 
78.10 	Hennepin County Board, from among its members; one by the Minneapolis Park Board, 
78.11 	from among its members; one by the Metropolitan Council, from among its members; two 
78.12 	members of the public appointed by the Minneapolis City Council; two members of the 
78.13 	public appointed by the Hennepin County Board; and one member appointed by the member 
78.14 	of Congress from the fifth district or the member's designee. The public members must 
78.15 	reside or do business in the affected area.

78.16 	Sec. 102. Minnesota Statutes 2016, section 477A.011, subdivision 3, is amended to read:
78.17 		Subd. 3.Population. "Population" means the population estimated or established as of 
78.18 	July 15 in an aid calculation year by the most recent federal census, by a special census 
78.19 	conducted under contract with the United States Bureau of the Census, by a population 
78.20 	estimate made by the Metropolitan Council pursuant to section 473.24, or by a population 
78.21 	estimate of the state demographer made pursuant to section 4A.02, whichever is the most 
78.22 	recent as to the stated date of the count or estimate for the preceding calendar year, and 
78.23 	which has been certified to the commissioner of revenue on or before July 15 of the aid 
78.24 	calculation year. The term "per capita" refers to population as defined by this subdivision. 
78.25 	A revision of an estimate or count is effective for these purposes only if it is certified to the 
78.26 	commissioner on or before July 15 of the aid calculation year. Clerical errors in the 
78.27 	certification or use of the estimates and counts established as of July 15 in the aid calculation 
78.28 	year are subject to correction within the time periods allowed under section 477A.014.

78.29 	Sec. 103. Minnesota Statutes 2016, section 477A.011, subdivision 38, is amended to read:
78.30 		Subd. 38.Household size. "Household size" means the average number of persons per 
78.31 	household in the jurisdiction as most recently estimated and reported by the state 
78.32 	demographer and Metropolitan Council as of July 15 of the aid calculation year. A revision 
79.1 	to an estimate or enumeration is effective for these purposes only if it is certified to the 
79.2 	commissioner on or before July 15 of the aid calculation year. Clerical errors in the 
79.3 	certification or use of estimates and counts established as of July 15 in the aid calculation 
79.4 	year are subject to correction within the time periods allowed under section 477A.014.

79.5 	Sec. 104. Minnesota Statutes 2016, section 477A.0124, subdivision 2, is amended to read:
79.6 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
79.7 	meanings given them.
79.8 	(b) "County program aid" means the sum of "county need aid," "county tax base 
79.9 	equalization aid," and "county transition aid."
79.10 	(c) "Age-adjusted population" means a county's population multiplied by the county age 
79.11 	index.
79.12 	(d) "County age index" means the percentage of the population over age 65 within the 
79.13 	county divided by the percentage of the population over age 65 within the state, except that 
79.14 	the age index for any county may not be greater than 1.8 nor less than 0.8.
79.15 	(e) "Population over age 65" means the population over age 65 established as of July 
79.16 	15 in an aid calculation year by the most recent federal census, by a special census conducted 
79.17 	under contract with the United States Bureau of the Census, by a population estimate made 
79.18 	by the Metropolitan Council, or by a population estimate of the state demographer made 
79.19 	pursuant to section 4A.02, whichever is the most recent as to the stated date of the count or 
79.20 	estimate for the preceding calendar year and which has been certified to the commissioner 
79.21 	of revenue on or before July 15 of the aid calculation year. A revision to an estimate or 
79.22 	count is effective for these purposes only if certified to the commissioner on or before July 
79.23 	15 of the aid calculation year. Clerical errors in the certification or use of estimates and 
79.24 	counts established as of July 15 in the aid calculation year are subject to correction within 
79.25 	the time periods allowed under section 477A.014.
79.26 	(f) "Part I crimes" means the three-year average annual number of Part I crimes reported 
79.27 	for each county by the Department of Public Safety for the most recent years available. By 
79.28 	July 1 of each year, the commissioner of public safety shall certify to the commissioner of 
79.29 	revenue the number of Part I crimes reported for each county for the three most recent 
79.30 	calendar years available.
79.31 	(g) "Households receiving food stamps" means the average monthly number of 
79.32 	households receiving food stamps for the three most recent years for which data is available. 
79.33 	By July 1 of each year, the commissioner of human services must certify to the commissioner 
80.1 	of revenue the average monthly number of households in the state and in each county that 
80.2 	receive food stamps, for the three most recent calendar years available.
80.3 	(h) "County net tax capacity" means the county's adjusted net tax capacity under section 
80.4 	273.1325.

80.5 	Sec. 105. Minnesota Statutes 2016, section 572A.02, subdivision 5, is amended to read:
80.6 		Subd. 5.Decision factors.  In disputes brought under this section, the arbitration panel 
80.7 	shall consider the following factors in making a decision:
80.8 	(1) present population and number of households, past population, and projected 
80.9 	population growth of the subject area and adjacent units of local government;
80.10 	(2) quantity of land within the subject area and adjacent units of local government; and 
80.11 	natural terrain including recognizable physical features, general topography, major 
80.12 	watersheds, soil conditions, and such natural features as rivers, lakes, and major bluffs;
80.13 	(3) degree of contiguity of the boundaries between the municipality and the subject area;
80.14 	(4) present pattern of physical development, planning, and intended land uses in the 
80.15 	subject area and the municipality including residential, industrial, commercial, agricultural, 
80.16 	and institutional land uses and the impact of the proposed action on those land uses;
80.17 	(5) the present transportation network and potential transportation issues, including 
80.18 	proposed highway development;
80.19 	(6) land use controls and planning presently being utilized in the municipality and the 
80.20 	subject area, including comprehensive plans for development in the area and plans and 
80.21 	policies of the Metropolitan Council, and whether there are inconsistencies between proposed 
80.22 	development and existing land use controls and the reasons therefore;
80.23 	(7) existing levels of governmental services being provided in the municipality and the 
80.24 	subject area, including water and sewer service, fire rating and protection, law enforcement, 
80.25 	street improvements and maintenance, administrative services, and recreational facilities 
80.26 	and the impact of the proposed action on the delivery of said services;
80.27 	(8) existing or potential environmental problems and whether the proposed action is 
80.28 	likely to improve or resolve these problems;
80.29 	(9) plans and programs by the municipality for providing needed governmental services 
80.30 	to the subject area;
81.1 	(10) an analysis of the fiscal impact on the municipality, the subject area, and adjacent 
81.2 	units of local government, including net tax capacity and the present bonded indebtedness, 
81.3 	and the local tax rates of the county, school district, and township;
81.4 	(11) relationship and effect of the proposed action on affected and adjacent school 
81.5 	districts and communities;
81.6 	(12) adequacy of town government to deliver services to the subject area;
81.7 	(13) analysis of whether necessary governmental services can best be provided through 
81.8 	the proposed action or another type of boundary adjustment; and
81.9 	(14) if only a part of a township is annexed, the ability of the remainder of the township 
81.10 	to continue or the feasibility of it being incorporated separately or being annexed to another 
81.11 	municipality.
81.12 	Any party to the proceeding may present evidence and testimony on any of the above factors 
81.13 	at the hearing on the matter.

81.14 	Sec. 106. Minnesota Statutes 2016, section 604B.04, subdivision 7, is amended to read:
81.15 		Subd. 7.Governmental unit immunity. No cause of action may be maintained against 
81.16 	a governmental unit as defined in section 462.384, subdivision 2, including governmental 
81.17 	units acting jointly under section 471.59, for damages or harm resulting from the collection, 
81.18 	publication, or dissemination of year 2000 solution information to other governmental units 
81.19 	or to the Metropolitan Council ormetropolitan agencies.

81.20 	Sec. 107. Minnesota Statutes 2016, section 609.2231, subdivision 11, is amended to read:
81.21 		Subd. 11.Transit operators. (a) A person is guilty of a gross misdemeanor if (1) the 
81.22 	person assaults a transit operator, or intentionally throws or otherwise transfers bodily fluids 
81.23 	onto a transit operator; and (2) the transit operator is acting in the course of the operator's 
81.24 	duties and is operating a transit vehicle, aboard a transit vehicle, or otherwise responsible 
81.25 	for a transit vehicle. A person convicted under this paragraph may be sentenced to 
81.26 	imprisonment for not more than one year or to payment of a fine of not more than $3,000, 
81.27 	or both.
81.28 	(b) For the purposes of this subdivision, "transit operator" means a driver or operator of 
81.29 	a transit vehicle that is used to provide any of the following services:
81.30 	(1) public transit, as defined in section 174.22, subdivision 7;
81.31 	(2) light rail transit service;
82.1 	(3) special transportation service under section 473.386, whether provided by the 
82.2 	Metropolitan CouncilDepartment of Transportation or by other providers under contract 
82.3 	with the council department; or
82.4 	(4) commuter rail service.

82.5 	Sec. 108. Minnesota Statutes 2016, section 609.594, subdivision 1, is amended to read:
82.6 		Subdivision 1.Definitions. As used in this section:
82.7 	(1) "critical public service facility" includes railroad yards and stations, bus stations, 
82.8 	airports, and other mass transit facilities; oil refineries; storage areas or facilities for hazardous 
82.9 	materials, hazardous substances, or hazardous wastes; and bridges;
82.10 	(2) "pipeline" has the meaning given in section 609.6055, subdivision 1; and
82.11 	(3) "utility" includes: (i) any organization defined as a utility in section 216C.06, 
82.12 	subdivision 18; (ii) any telecommunications carrier or telephone company regulated under 
82.13 	chapter 237; and (iii) any local utility or enterprise formed for the purpose of providing 
82.14 	electrical or gas heating and power, telephone, water, sewage, wastewater, or other related 
82.15 	utility service, which is owned, controlled, or regulated by a town, a statutory or home rule 
82.16 	charter city, a county, a port development authority, the Metropolitan Council, a district 
82.17 	heating authority, a regional commission or other regional government unit, or a combination 
82.18 	of these governmental units.

82.19 	Sec. 109. Minnesota Statutes 2016, section 609.6055, subdivision 1, is amended to read:
82.20 		Subdivision 1.Definitions. (a) As used in this section, the following terms have the 
82.21 	meanings given.
82.22 	(b) "Critical public service facility" includes buildings and other physical structures, and 
82.23 	fenced in or otherwise enclosed property, of railroad yards and stations, bus stations, airports, 
82.24 	and other mass transit facilities; oil refineries; and storage areas or facilities for hazardous 
82.25 	materials, hazardous substances, or hazardous wastes. The term also includes nonpublic 
82.26 	portions of bridges. The term does not include railroad tracks extending beyond a critical 
82.27 	public service facility.
82.28 	(c) "Pipeline" includes an aboveground pipeline, a belowground pipeline housed in an 
82.29 	underground structure, and any equipment, facility, or building located in this state that is 
82.30 	used to transport natural or synthetic gas, crude petroleum or petroleum fuels or oil or their 
82.31 	derivatives, or hazardous liquids, to or within a distribution, refining, manufacturing, or 
83.1 	storage facility that is located inside or outside of this state. Pipeline does not include service 
83.2 	lines.
83.3 	(d) "Utility" includes:
83.4 	(1) any organization defined as a utility in section 216C.06, subdivision 18;
83.5 	(2) any telecommunications carrier or telephone company regulated under chapter 237; 
83.6 	and
83.7 	(3) any local utility or enterprise formed for the purpose of providing electrical or gas 
83.8 	heating and power, telephone, water, sewage, wastewater, or other related utility service, 
83.9 	which is owned, controlled, or regulated by a town, a statutory or home rule charter city, a 
83.10 	county, a port development authority, the Metropolitan Council, a district heating authority, 
83.11 	a regional commission or other regional government unit, or a combination of these 
83.12 	governmental units.
83.13 	The term does not include property located above buried power or telecommunications 
83.14 	lines or property located below suspended power or telecommunications lines, unless the 
83.15 	property is fenced in or otherwise enclosed.
83.16 	(e) "Utility line" includes power, telecommunications, and transmissions lines as well 
83.17 	as related equipment owned or controlled by a utility.

83.18 	Sec. 110. BONDS.
 83.19 	Bonds and other debt authorized by any sections of statute affected by this article that 
83.20 	are outstanding on the effective date of this article must be paid and retired according to 
83.21 	those sections and the terms of the bonds or other debt instruments. The auditors of the 
83.22 	metropolitan counties shall see to the administration of this section.

83.23 	Sec. 111.  REPEALER.
 83.24 	(a) Minnesota Statutes 2016, sections 3.8841; 103B.235, subdivision 3a; 238.43, 
83.25 	subdivision 5; 297A.992, subdivision 12; 462.382; 462C.071, subdivision 4; 473.121, 
83.26 	subdivisions 3 and 8; 473.123, subdivisions 1, 2a, 3, 3a, 3e, 4, and 8; 473.125; 473.127; 
83.27 	473.129; 473.1293; 473.132; 473.165; 473.24; 473.242; 473.245; 473.246; 473.249, 
83.28 	subdivisions 1 and 2; 473.25; 473.251; 473.253; 473.254; 473.255; 473.3875; and 473.915,
83.29 	are repealed.
84.1 	(b) Minnesota Rules, parts 5800.0010; 5800.0020; 5800.0030; 5800.0040; 5800.0050; 
84.2 	5800.0060; 5800.0070; 5800.0080; 5800.0090; 5800.0100; 5800.0110; 5800.0120; 
84.3 	5800.0130; 5800.0140; and 5800.0150, are repealed.

84.4 	Sec. 112. EFFECTIVE DATE.
 84.5 	This article is effective July 1, 2017.

84.6 	ARTICLE 2
84.7 	PUBLIC SAFETY RADIO COMMUNICATION

84.8 	Section 1. Minnesota Statutes 2016, section 403.30, subdivision 1, is amended to read:
84.9 		Subdivision 1.Standing appropriation; costs covered. The amount necessary to pay 
84.10 	debt service costs and reserves for bonds issued by the Metropolitan Council under section 
84.11 	403.27before July 1, 2018, or by the commissioner of management and budget under section 
84.12 	403.275 is appropriated from the 911 emergency telecommunications service account 
84.13 	established under section 403.11 to the commissioner of management and budget. The 
84.14 	commissioner of management and budget shall transmit the necessary amounts to the 
84.15 	Metropolitan Council as requested by the council auditors of the metropolitan counties as 
84.16 	requested by the auditors.
84.17 	This appropriation shall be used to pay annual debt service costs and reserves for bonds 
84.18 	issued pursuant to section 403.27 or 403.275 prior to use of fee money to pay other costs 
84.19 	or to support other appropriations.

84.20 	Sec. 2. Minnesota Statutes 2016, section 403.31, subdivision 4, is amended to read:
84.21 		Subd. 4.Powers of government units. To accomplish any duty imposed on it by the 
84.22 	council or radio board, the governing body of every local government in the metropolitan 
84.23 	area may exercise the powers granted any municipality by chapters 117, 412, 429, and 475 
84.24 	and by sections 115.46, 444.075, and 471.59.

84.25 	Sec. 3. Minnesota Statutes 2016, section 403.31, subdivision 5, is amended to read:
84.26 		Subd. 5.Deficiency tax levies. If the governing body of any local government using the 
84.27 	first or second phase system fails to meet any payment to the board under subdivision 1 
84.28 	when due, the Metropolitan Councillocal government governing body may certify to the 
84.29 	auditor of the county in which the government unit is located the amount required for 
84.30 	payment of the amount due with interest at six percent per year. The auditor shall levy and 
84.31 	extend the amount due, with interest, as a tax upon all taxable property in the government 
85.1 	unit for the next calendar year, free from any existing limitations imposed by law or charter. 
85.2 	This tax shall be collected in the same manner as the general taxes of the government unit, 
85.3 	and the proceeds of the tax, when collected, shall be paid by the county treasurer to the 
85.4 	board and credited to the government unit for which the tax was levied.

85.5 	Sec. 4. Minnesota Statutes 2016, section 403.36, subdivision 1, is amended to read:
85.6 		Subdivision 1.Membership. (a) The commissioner of public safety shall convene and 
85.7 	chair the Statewide Radio Board to develop a project plan for a statewide, shared, trunked 
85.8 	public safety radio communication system. The system may be referred to as "Allied Radio 
85.9 	Matrix for Emergency Response," or "ARMER."
85.10 	(b) The board consists of the following members or their designees:
85.11 	(1) the commissioner of public safety;
85.12 	(2) the commissioner of transportation;
85.13 	(3) the state chief information officer;
85.14 	(4) the commissioner of natural resources;
85.15 	(5) the chief of the Minnesota State Patrol;
85.16 	(6) the chair of the Metropolitan Council;
85.17 	(7)(6) two elected city officials, one from the nine-county metropolitan area and one 
85.18 	from Greater Minnesota, appointed by the governing body of the League of Minnesota 
85.19 	Cities;
85.20 	(8)(7) two elected county officials, one from the nine-county metropolitan area and one 
85.21 	from Greater Minnesota, appointed by the governing body of the Association of Minnesota 
85.22 	Counties;
85.23 	(9)(8) two sheriffs, one from the nine-county metropolitan area and one from Greater 
85.24 	Minnesota, appointed by the governing body of the Minnesota Sheriffs' Association;
85.25 	(10)(9) two chiefs of police, one from the nine-county metropolitan area and one from 
85.26 	Greater Minnesota, appointed by the governor after considering recommendations made by 
85.27 	the Minnesota Chiefs' of Police Association;
85.28 	(11)(10) two fire chiefs, one from the nine-county metropolitan area and one from 
85.29 	Greater Minnesota, appointed by the governor after considering recommendations made by 
85.30 	the Minnesota Fire Chiefs' Association;
86.1 	(12)(11) two representatives of emergency medical service providers, one from the 
86.2 	nine-county metropolitan area and one from Greater Minnesota, appointed by the governor 
86.3 	after considering recommendations made by the Minnesota Ambulance Association;
86.4 	(13)(12) the chair of the regional radio board for the metropolitan area; and
86.5 	(14)(13) a representative of Greater Minnesota elected by those units of government in 
86.6 	phase three and any subsequent phase of development as defined in the statewide, shared 
86.7 	radio and communication plan, who have submitted a plan to the Statewide Radio Board 
86.8 	and where development has been initiated.
86.9 	(c) The Statewide Radio Board shall coordinate the appointment of board members 
86.10 	representing Greater Minnesota with the appointing authorities and may designate the 
86.11 	geographic region or regions from which an appointed board member is selected where 
86.12 	necessary to provide representation from throughout the state.

86.13 	Sec. 5. BONDS AND CERTIFICATES.
 86.14 	Debt obligations authorized and issued under Minnesota Statutes, section 403.27, before 
86.15 	the effective date of this article must be paid for and retired according to that section and 
86.16 	the terms of those obligations and their bond indentures and trust agreements. The 
86.17 	metropolitan county auditors shall administer this section.

86.18 	Sec. 6.  REPEALER.
 86.19 	Minnesota Statutes 2016, sections 403.27; 403.29, subdivision 4; and 403.32, are repealed.

86.20 	Sec. 7. EFFECTIVE DATE.
 86.21 	This article is effective July 1, 2017.

86.22 	ARTICLE 3
86.23 	FISCAL DISPARITIES

86.24 	Section 1. Minnesota Statutes 2016, section 473F.02, subdivision 7, is amended to read:
86.25 		Subd. 7.Population. "Population" means the most recent estimate of the population of 
86.26 	a municipality made by the Metropolitan Council under section 473.24 state demographer
86.27 	and filed with the commissioner of revenue as of July 15 of the year in which a municipality's 
86.28 	distribution net tax capacity is calculated.

87.1 	Sec. 2. Minnesota Statutes 2016, section 473F.02, subdivision 8, is amended to read:
87.2 		Subd. 8.Municipality. "Municipality" means a city, town, or township located in whole 
87.3 	or part within the area, but not the cities of New Prague or Northfield. If a municipality is 
87.4 	located partly within and partly without the area, the references in sections 473F.01 to 
87.5 	473F.13 to property or any portion thereof subject to taxation or taxing jurisdiction within 
87.6 	the municipality are to such property or portion thereof as is located in that portion of the 
87.7 	municipality within the area, except that the fiscal capacity of such a municipality shall be 
87.8 	computed upon the basis of the valuation and population of the entire municipality.
87.9 	A municipality shall be excluded from the area if its municipal comprehensive zoning 
87.10 	and planning policies conscientiously exclude most commercial-industrial development, 
87.11 	for reasons other than preserving an agricultural use. The Metropolitan Council and the 
87.12 	commissioner of administration and the commissioner of revenue shall jointly make this 
87.13 	determination annually and shall notify those municipalities that are ineligible to participate 
87.14 	in the tax base sharing program provided in this chapter for the following year.

87.15 	Sec. 3. Minnesota Statutes 2016, section 473F.08, subdivision 3, is amended to read:
87.16 		Subd. 3.Apportionment of levy. The county auditor shall apportion the levy of each 
87.17 	governmental unit in the auditor's county in the manner prescribed by this subdivision. The 
87.18 	auditor shall:
87.19 	(a) by August 20, determine the areawide portion of the levy for each governmental unit 
87.20 	by multiplying the local tax rate of the governmental unit for the preceding levy year times 
87.21 	the distribution value set forth in subdivision 2, clause (b);
87.22 	(b) by September 5, determine the local portion of the current year's levy by subtracting 
87.23 	the resulting amount from clause (a) from the governmental unit's current year's levy; and
87.24 	(c) for determinations made under clause (a) in the case of school districts, for taxes 
87.25 	payable in 2002, exclude the general education tax rate and the portion of the referendum 
87.26 	tax rate attributable to the first $415 per pupil unit from the local tax rate for the preceding 
87.27 	levy year;.
87.28 	(d) for determinations made under clause (a) in the case of the Metropolitan Council, 
87.29 	for taxes payable in 2002, exclude the transit operating tax rate from the local tax rate for 
87.30 	the preceding levy year; and
87.31 	(e) for determinations made under clause (a) in the case of transit opt-out cities, for taxes 
87.32 	payable in 2002, exclude the opt-out transit rate from the local tax rate for the preceding 
87.33 	levy year.

88.1 	Sec. 4. Minnesota Statutes 2016, section 473F.08, subdivision 5, is amended to read:
88.2 		Subd. 5.Areawide tax rate. On or before August 25 of each year, the county auditor 
88.3 	shall certify to the administrative auditor that portion of the levy of each governmental unit 
88.4 	determined under subdivisions 3, clause (a), and 3a, and 3b. The administrative auditor shall 
88.5 	then determine the areawide tax rate sufficient to yield an amount equal to the sum of such 
88.6 	levies from the areawide net tax capacity. On or before September 1 of each year, the 
88.7 	administrative auditor shall certify the areawide tax rate to each of the county auditors.

88.8 	Sec. 5. Minnesota Statutes 2016, section 473F.08, subdivision 7a, is amended to read:
88.9 		Subd. 7a.Certification of values; payment. The administrative auditor shall determine 
88.10 	for each county the difference between the total levy on distribution value pursuant to 
88.11 	subdivisions 3, clause (a), and 3a, and 3b, within the county and the total tax on contribution 
88.12 	value pursuant to subdivision 6, within the county. On or before May 16 of each year, the 
88.13 	administrative auditor shall certify the differences so determined to each county auditor. In 
88.14 	addition, the administrative auditor shall certify to those county auditors for whose county 
88.15 	the total tax on contribution value exceeds the total levy on distribution value the settlement 
88.16 	the county is to make to the other counties of the excess of the total tax on contribution 
88.17 	value over the total levy on distribution value in the county. On or before June 15 and 
88.18 	November 15 of each year, each county treasurer in a county having a total tax on 
88.19 	contribution value in excess of the total levy on distribution value shall pay one-half of the 
88.20 	excess to the other counties in accordance with the administrative auditors certification.

88.21 	Sec. 6. Minnesota Statutes 2016, section 473F.13, subdivision 1, is amended to read:
88.22 		Subdivision 1.Certification of change in status. If a municipality is dissolved, is 
88.23 	consolidated with all or part of another municipality, annexes territory, has a portion of its 
88.24 	territory detached from it, or is newly incorporated, the secretary of state shall immediately 
88.25 	certify that fact to the commissioner of revenue. The secretary of state shall also certify to 
88.26 	the commissioner of revenue the current population of the new, enlarged, or successor 
88.27 	municipality, if determined by the chief administrative law judge of the state Office of 
88.28 	Administrative Hearings incident to consolidation, annexation, or incorporation proceedings. 
88.29 	The population so certified shall govern for purposes of sections 473F.01 to 473F.13 until 
88.30 	the Metropolitan Councilstate demographer files its first population estimate as of a later 
88.31 	date with the commissioner of revenue. If an annexation of unincorporated land occurs 
88.32 	without proceedings before the chief administrative law judge, the population of the annexing 
88.33 	municipality as previously determined shall continue to govern for purposes of sections 
89.1 	473F.01 to 473F.13 until the Metropolitan Councilstate demographer files its first population 
89.2 	estimate as of a later date with the commissioner of revenue.

89.3 	Sec. 7.  REPEALER.
 89.4 	Minnesota Statutes 2016, sections 473F.02, subdivision 21; and 473F.08, subdivision 
89.5 	3b, are repealed.

89.6 	Sec. 8. EFFECTIVE DATE.
 89.7 	This article is effective July 1, 2018.

89.8 	ARTICLE 4
89.9 	METROPOLITAN LAND USE PLANNING

89.10 	Section 1.  REPEALER.
 89.11 	Minnesota Statutes 2016, sections 473.175; 473.181, subdivisions 2 and 5; 473.191; 
89.12 	473.206; 473.208; 473.851; 473.852, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10; 473.853; 
89.13 	473.854; 473.856; 473.857; 473.858; 473.859; 473.86; 473.861; 473.862; 473.864; 473.865; 
89.14 	473.866; 473.867, subdivisions 1, 2, 3, 5, and 6; 473.869; 473.87; and 473.871, are repealed.

89.15 	Sec. 2. EFFECTIVE DATE.
 89.16 	This article is effective July 1, 2018.

89.17 	ARTICLE 5
89.18 	METROPOLITAN AIRPORTS COMMISSION

89.19 	Section 1. Minnesota Statutes 2016, section 473.192, subdivision 2, is amended to read:
89.20 		Subd. 2.Definitions. For purposes of this section, "metropolitan area" has the meaning 
89.21 	given it in section 473.121, subdivision 2. "Transportation policy plan" means the plan 
89.22 	adopted by the Metropolitan Councilcommissioner of administration pursuant to section 
89.23 	473.145. "Municipality" has the meaning provided by section 462.352, subdivision 2.

89.24 	Sec. 2. Minnesota Statutes 2016, section 473.192, subdivision 3, is amended to read:
89.25 		Subd. 3.Ordinance. A municipality in the metropolitan area that, in part or in whole, 
89.26 	is within the aircraft noise zones designated in the transportation policy plan may adopt and 
89.27 	enforce ordinances and controls to regulate building construction methods and materials 
89.28 	for the purpose of attenuating aircraft noise in habitable buildings in and around the noise 
90.1 	zone. The ordinance or control shall not apply to remodeling or rehabilitating an existing 
90.2 	residential building nor to the construction of an appurtenance to an existing residential 
90.3 	building. An ordinance adopted by a municipality must be adequate to implement the 
90.4 	Metropolitan Council's guidelines of the commissioner of administration for land use 
90.5 	compatibility with aircraft noise. Section 326B.121 does not apply to ordinances adopted 
90.6 	under this section.

90.7 	Sec. 3. Minnesota Statutes 2016, section 473.602, is amended to read:
90.8 	473.602 DECLARATION OF PURPOSES.
90.9 	It is the purpose of sections 473.601 to 473.679 to:
90.10 	(1) promote the public welfare and national security; serve public interest, convenience, 
90.11 	and necessity; promote air navigation and transportation, international, national, state, and 
90.12 	local, in and through this state; promote the efficient, safe, and economical handling of air 
90.13 	commerce; assure the inclusion of this state in national and international programs of air 
90.14 	transportation; and to those ends to develop the full potentialities of the metropolitan area 
90.15 	in this state as an aviation center, and to correlate that area with all aviation facilities in the 
90.16 	entire state so as to provide for the most economical and effective use of aeronautic facilities 
90.17 	and services in that area;
90.18 	(2) assure the residents of the metropolitan area of the minimum environmental impact 
90.19 	from air navigation and transportation, and to that end provide for noise abatement, control 
90.20 	of airport area land use, and other protective measures; and
90.21 	(3) promote the overall goals of the state's environmental policies and minimize the 
90.22 	public's exposure to noise and safety hazards around airports.
90.23 	To achieve these purposes, the corporation shall cooperate with and assist the 
90.24 	Metropolitan Council commissioner of administration, the federal government, the 
90.25 	commissioner of transportation of this state, the Pollution Control Agency, and others 
90.26 	engaged in aeronautics or the promotion and regulation of aeronautics and shall seek to 
90.27 	coordinate its activities with the aeronautical activities of these bodies.

90.28 	Sec. 4. Minnesota Statutes 2016, section 473.604, subdivision 1, is amended to read:
90.29 		Subdivision 1.Composition.  The commission consists of:
90.30 	(1) the mayor of each of the cities, or a qualified voter appointed by the mayor, for the 
90.31 	term of office as mayor;
91.1 	(2) eight members, appointed by the governor, one from each of the following agency
91.2 	districts, based on the Metropolitan Council plan MC2013-1A, on file with the Geographical 
91.3 	Information Systems Office of the Legislative Coordinating Commission and published on 
91.4 	its Web site on April 9, 2013:
91.5 	(i) district A, consisting of council districts 1 and 2;
91.6 	(ii) district B, consisting of council districts 3 and 4;
91.7 	(iii) district C, consisting of council districts 5 and 6;
91.8 	(iv) district D, consisting of council districts 7 and 8;
91.9 	(v) district E, consisting of council districts 9 and 10;
91.10 	(vi) district F, consisting of council districts 11 and 12;
91.11 	(vii) district G, consisting of council districts 13 and 14; and
91.12 	(viii) district H, consisting of council districts 15 and 16.
91.13 	Each member shall be a resident of the district represented. For appointments after June 2, 
91.14 	2006, a member must have resided in the district for at least six months and in the state for 
91.15 	at least one year immediately preceding the appointment. The terms of the members from 
91.16 	districts A, B, F, and H expire on January 1, 2007. The terms of the members from districts 
91.17 	C, D, E, and G expire on January 5, 2009. The successors of each member must be appointed 
91.18 	to four-year terms. Before making an appointment, the governor shall consult with each 
91.19 	member of the legislature from the district for which the member is to be appointed, to 
91.20 	solicit the legislator's recommendation on the appointment;
91.21 	(3) four members appointed by the governor from outside of the metropolitan area to 
91.22 	reflect fairly the various regions and interests throughout the state that are affected by the 
91.23 	operation of the commission's major airport and airport system. Two of these members must 
91.24 	be residents of statutory or home rule charter cities, towns, or counties containing an airport 
91.25 	designated by the commissioner of transportation as a key airport. The other two must be 
91.26 	residents of statutory or home rule charter cities, towns, or counties containing an airport 
91.27 	designated by the commissioner of transportation as an intermediate airport. The members 
91.28 	must be appointed by the governor as follows: one for a term of one year, one for a term of 
91.29 	two years, one for a term of three years, and one for a term of four years. All of the terms 
91.30 	start on July 1, 1989. The successors of each member must be appointed to four-year terms 
91.31 	commencing on the first Monday in January of each fourth year after the expiration of the 
91.32 	original term. Before making an appointment, the governor shall consult each member of 
92.1 	the legislature representing the municipality or county from which the member is to be 
92.2 	appointed, to solicit the legislator's recommendation on the appointment; and
92.3 	(4) a chair appointed by the governor for a term of four years. The chair may be removed 
92.4 	at the pleasure of the governor.

92.5 	Sec. 5. Minnesota Statutes 2016, section 473.604, is amended by adding a subdivision to 
92.6 	read:
92.7 		Subd. 1a.Redistricting. The legislature shall redraw the boundaries of the districts after 
92.8 	each decennial federal census so that each district has substantially equal population. 
92.9 	Redistricting is effective in the year ending in the numeral "3." Within 60 days after a 
92.10 	redistricting plan takes effect, the governor shall appoint members from the newly drawn 
92.11 	districts to serve terms as provided under subdivision 2.

92.12 	Sec. 6. Minnesota Statutes 2016, section 473.608, subdivision 19, is amended to read:
92.13 		Subd. 19.Acoustical barriers. The corporation shall construct an acoustical barrier in 
92.14 	or along the perimeter of maintenance areas of the Minneapolis-St. Paul International Airport. 
92.15 	It also shall construct acoustical barriers along the perimeter of runways of such airport 
92.16 	where it is reasonably necessary, practical and safe to do so according to the standards of 
92.17 	the Federal Aviation Administration. All barriers shall conform to specifications approved 
92.18 	by the Pollution Control Agency. For purposes of this subdivision, an acoustical barrier is 
92.19 	a wall, fence, natural barrier such as an earthen barrier or trees designed to abate noise. The 
92.20 	corporation shall also confer and cooperate with any entity which it creates for the purpose 
92.21 	of studying and implementing sound abatement programs and with representatives of persons 
92.22 	residing in the vicinity of any airport who desire to explore means for relieving the area of 
92.23 	the detrimental effects of aircraft noise.
92.24 	Notwithstanding the provisions of any other law none of the construction authorized by 
92.25 	this subdivision shall be subject to review or approval by the Metropolitan Council 
92.26 	commissioner of administration.

92.27 	Sec. 7. Minnesota Statutes 2016, section 473.611, subdivision 5, is amended to read:
92.28 		Subd. 5.New or existing airports. Any long-term comprehensive plans adopted by the 
92.29 	commission for the betterment and enlargement of existing airports, for the acquisition and 
92.30 	construction of new airports, and for the categories of use of airports owned or controlled 
92.31 	by the commission shall be consistent with the development guide of the Metropolitan 
92.32 	Council commissioner of administration.

93.1 	Sec. 8. Minnesota Statutes 2016, section 473.638, is amended to read:
93.2 	473.638 CONTROL MEASURE INVOLVING TAKING.
93.3 		Subd. 2.Retention or sale of property. The commission may retain any property now 
93.4 	owned by it or acquired under subdivision 1 and use it for a lawful purpose, or it may provide 
93.5 	for the sale or other disposition of the property in accordance with a redevelopment plan in 
93.6 	the same manner and upon the same terms as the housing and redevelopment authority and 
93.7 	governing body of a municipality under the provisions of section 469.029, all subject to 
93.8 	existing land use and development control measures approved by the council commissioner 
93.9 	of administration.
93.10 		Subd. 3.Sharing of costs. The Metropolitan Airports Commission and any other 
93.11 	government unit in the metropolitan area may enter into an agreement under which the cost 
93.12 	of acquiring a property and the proceeds from the sale or other disposition of it under 
93.13 	subdivision 2 are to be shared by the commission and such government unit. The commission, 
93.14 	the Metropolitan Council, or any government unit may also enter into any agreements with 
93.15 	the United States or the state of Minnesota, or any agency or subdivision of either, and do 
93.16 	all acts and things required by state or federal law or rules as a condition or consideration 
93.17 	for the loan or grant of funds or property for the purpose of land acquisition or improvement 
93.18 	under subdivisions 1 and 2.

93.19 	Sec. 9. Minnesota Statutes 2016, section 473.64, is amended to read:
93.20 	473.64 GOVERNMENTS IN AIRPORT DEVELOPMENT AREA; TAX SHARING.
93.21 	The governing bodies of government units located wholly or partly in an airport 
93.22 	development area shall jointly study and decide upon a plan for the sharing of property tax 
93.23 	revenues derived from property located in an airport development area. If 80 percent of the 
93.24 	government units having territory within the airport development area agree upon a plan, 
93.25 	the plan is effective, and all government units shall enter into whatever agreements may be 
93.26 	necessary for this purpose. The plan, however, may not impair the existing contract 
93.27 	obligations of any government unit. This section does not apply to the Metropolitan Airports 
93.28 	Commission or the council.

93.29 	Sec. 10. Minnesota Statutes 2016, section 473.655, is amended to read:
93.30 	473.655 PUBLIC AND GOVERNMENTAL PURPOSES.
93.31 	It is hereby determined and declared that the purposes of sections 473.601 to 473.679
93.32 	are public and governmental; that the development of the metropolitan airports system by 
94.1 	the corporation be consistent with the transportation chapter of the Metropolitan Council's
94.2 	Development Guide and promote the public safety and welfare of the state; and that the 
94.3 	development, extension, maintenance, and operation of the system in such a manner as to 
94.4 	assure the residents of the metropolitan area of the minimum environmental impact from 
94.5 	air navigation and transportation, with provision for noise abatement, control of airport area 
94.6 	land use, and other protective measures, is essential to the development of air navigation 
94.7 	and transportation in and through this state, and is necessary in order to assure the inclusion 
94.8 	of this state in national and international systems of air transportation, benefits the people 
94.9 	of the state as a whole, renders a general public service, and provides employment, and is 
94.10 	of great public economic benefit.

94.11 	Sec. 11. Minnesota Statutes 2016, section 473.661, subdivision 4, is amended to read:
94.12 		Subd. 4.Noise mitigation. (a) According to the schedule in paragraph (b), commission 
94.13 	funds must be dedicated (1) to supplement the implementation of corrective land use 
94.14 	management measures approved by the Federal Aviation Administration as part of the 
94.15 	commission's Federal Aviation Regulations, part 150 noise compatibility program, and (2) 
94.16 	for soundproofing and accompanying air conditioning of residences, schools, and other 
94.17 	public buildings when there is a demonstrated need because of aircraft noise, regardless of 
94.18 	the location of the building to be soundproofed.
94.19 	(b) The noise mitigation program described in paragraph (a) shall be funded by the 
94.20 	commission from whatever source of funds according to the following schedule:
94.21 	In 1993, an amount equal to 20 percent of the passenger facilities charges revenue amount 
94.22 	budgeted by the commission for 1993;
94.23 	In 1994, an amount equal to 20 percent of the passenger facilities charges revenue amount 
94.24 	budgeted by the commission for 1994;
94.25 	In 1995, an amount equal to 35 percent of the passenger facilities charges revenue amount 
94.26 	budgeted by the commission for 1995; and
94.27 	In 1996 and 1997, an amount equal to 40 percent of the passenger facilities charges 
94.28 	revenue amount budgeted by the commission for 1996.
94.29 	(c) From 1996 to 2002, the commission shall spend no less than $185,000,000 from any 
94.30 	source of funds for insulation and accompanying air conditioning of residences, schools, 
94.31 	and other publicly owned buildings where there is a demonstrated need because of aircraft 
94.32 	noise; and property acquisition, limited to residences, schools, and other publicly owned 
94.33 	buildings, within the noise impacted area. In addition, the corporation shall insulate and air 
95.1 	condition four schools in Minneapolis and two schools in Richfield that are located in the 
95.2 	1996 60 Ldn contour.
95.3 	(d) Before the commission constructs a new runway at Minneapolis-St. Paul International 
95.4 	Airport, the commission shall determine the probable levels of noise that will result in 
95.5 	various parts of the metropolitan area from the operation of aircraft on the new runway and 
95.6 	shall develop a program to mitigate noise in those parts of the metropolitan area that are 
95.7 	located outside the 1996 65 Ldn contour but will be located within the 65 Ldn contour as 
95.8 	established after the new runway is in operation. Based upon this determination, the 
95.9 	commission shall reserve in its annual budget, until noise mitigation measures are completed, 
95.10 	an amount of money necessary to implement this noise mitigation program in the newly 
95.11 	impacted areas.
95.12 	(e) The commission's capital improvement projects, program, and plan must reflect the 
95.13 	requirements of this section. As part of the commission's report to the legislature under 
95.14 	section 473.621, subdivision 1a, the commission must provide a description and the status 
95.15 	of each noise mitigation project implemented under this section.
95.16 	(f) Within 180 days of submitting the commission's and the Metropolitan Council's 
95.17 	report and recommendations on major airport planning to the legislature as required by 
95.18 	Minnesota Statutes 2012, section 473.618, the commission, with the assistance of its sound 
95.19 	abatement advisory committee, shall make a recommendation to the state Advisory Council 
95.20 	on Metropolitan Airport Planning regarding proposed mitigation activities and appropriate 
95.21 	funding levels for mitigation activities at Minneapolis-St. Paul International Airport and in 
95.22 	the neighboring communities. The recommendation shall examine mitigation measures to 
95.23 	the 60 Ldn level. The state Advisory Council on Metropolitan Airport Planning shall review 
95.24 	the recommendation and comment to the legislature within 60 days after the recommendation 
95.25 	is submitted to the council.

95.26 	Sec. 12. Minnesota Statutes 2016, section 473.667, subdivision 8, is amended to read:
95.27 		Subd. 8.Refunding deficiencies. If in any year the revenues available for transfer to 
95.28 	the debt service fund are or will in the judgment of the commission be insufficient to produce 
95.29 	the balance required thereon on October 10 under the provisions of subdivision 4, or to 
95.30 	make any interest or principal payment due on certificates of indebtedness issued under the 
95.31 	provisions of subdivision 10, the commission may, with the approval of the council, issue 
95.32 	refunding bonds and appropriate the proceeds to the debt service fund in the amount needed 
95.33 	to restore the deficiency, provided that the refunding bonds shall not mature earlier than the 
95.34 	date or dates when the commission estimates that the revenues from enforced or increased 
96.1 	rates, fees, charges, and rentals will be sufficient to pay them and to meet all other 
96.2 	requirements of the debt service fund as stated in subdivision 4.

96.3 	Sec. 13.  REPEALER.
 96.4 	Minnesota Statutes 2016, section 473.621, subdivision 6, is repealed.

96.5 	Sec. 14. EFFECTIVE DATE.
 96.6 	This article is effective July 1, 2018.

96.7 	ARTICLE 6
96.8 	METROPOLITAN AGRICULTURAL PRESERVES

96.9 	Section 1. Minnesota Statutes 2016, section 473H.04, subdivision 3, is amended to read:
96.10 		Subd. 3.Maps to Met Council Minnesota planning. The authority shall provide the 
96.11 	Metropolitan Councilcommissioner of administration with suitable maps showing any lands 
96.12 	certified eligible pursuant to subdivision 1 or decertified pursuant to subdivision 2. The 
96.13 	Metropolitan Councilcommissioner of administration shall maintain maps of the metropolitan 
96.14 	area showing all certified long-term agricultural lands.

96.15 	Sec. 2. Minnesota Statutes 2016, section 473H.06, subdivision 1, is amended to read:
96.16 		Subdivision 1.Application. Upon receipt of an application, the authority shall determine 
96.17 	if all material required in section 473H.05 has been submitted and, if so, shall determine 
96.18 	that the application is complete. When used in this chapter, the term "date of application" 
96.19 	means the date the application is determined complete by the authority. Within five days 
96.20 	of the date of application, the authority shall forward the completed and signed application 
96.21 	to the county recorder, and copies to the county auditor, the county assessor, the Metropolitan 
96.22 	Council commissioner of administration, and the county soil and water conservation district.

96.23 	Sec. 3. Minnesota Statutes 2016, section 473H.06, subdivision 5, is amended to read:
96.24 		Subd. 5.Maps; reports. The Metropolitan Councilcommissioner of administration 
96.25 	shall maintain agricultural preserve maps, illustrating (a) certified long-term agricultural 
96.26 	lands; and (b) lands covenanted as agricultural preserves. The councilcommissioner of 
96.27 	administration shall make yearly reports to the Department of Agriculture and such other 
96.28 	agencies as the councilcommissioner of administration deems appropriate.

97.1 	Sec. 4. Minnesota Statutes 2016, section 473H.08, subdivision 4, is amended to read:
97.2 		Subd. 4.Notice to others. Upon receipt of the notice provided in subdivision 2, or upon 
97.3 	notice served by the authority as provided in subdivision 3, the authority shall forward the 
97.4 	original notice to the county recorder for recording, or to the registrar of titles if the land is 
97.5 	registered, and shall notify the county auditor, county assessor, the Metropolitan Council
97.6 	commissioner of administration, and the county soil and water conservation district of the 
97.7 	date of expiration. Designation as an agricultural preserve and all benefits and limitations 
97.8 	accruing through sections 473H.02 to 473H.17 for the preserve shall cease on the date of 
97.9 	expiration. The restrictive covenant contained in the application shall terminate on the date 
97.10 	of expiration.

97.11 	Sec. 5.  REPEALER.
 97.12 	Minnesota Statutes 2016, section 473H.02, subdivisions 7 and 8, are repealed.

97.13 	Sec. 6. EFFECTIVE DATE.
 97.14 	This article is effective July 1, 2018.

97.15 	ARTICLE 7
97.16 	PARKS AND OPEN SPACE

97.17 	Section 1. Minnesota Statutes 2016, section 473.121, subdivision 14, is amended to read:
97.18 		Subd. 14.Regional recreation open space. "Regional recreation open space" means 
97.19 	land and water areas, or interests therein, and facilities determined by the Metropolitan 
97.20 	Councilcommissioner of administration to be of regional importance in providing for a 
97.21 	balanced system of public outdoor recreation for the metropolitan area, including but not 
97.22 	limited to park reserves, major linear parks and trails, large recreation parks, and 
97.23 	conservatories, zoos, and other special use facilities.

97.24 	Sec. 2. Minnesota Statutes 2016, section 473.147, is amended to read:
97.25 	473.147 REGIONAL RECREATION OPEN SPACE SYSTEM POLICY PLAN.
97.26 		Subdivision 1.Requirements. The Metropolitan Councilcommissioner of administration 
97.27 	after consultation with the Parks and Open Space Commission, municipalities, park districts 
97.28 	and counties in the metropolitan area, and after appropriate public hearings, shall prepare 
97.29 	and adopt a long-range system policy plan for regional recreation open space as part of the 
97.30 	council's Metropolitan Development Guide. The plan shall substantially conform to all 
98.1 	policy statements, purposes, goals, standards, and maps in development guide sections and 
98.2 	comprehensive plans as developed and adopted by the council pursuant to the chapters of 
98.3 	the Minnesota Statutes directly relating to the council commissioner of administration. The 
98.4 	policy plan shall identify generally the areas which should be acquired by a public agency 
98.5 	to provide a system of regional recreation open space comprising park district, county and 
98.6 	municipal facilities which, together with state facilities, reasonably will meet the outdoor 
98.7 	recreation needs of the people of the metropolitan area and shall establish priorities for 
98.8 	acquisition and development. The policy plan shall estimate the cost of the recommended 
98.9 	acquisitions and development, including an analysis of what portion of the funding is 
98.10 	proposed to come from the state, Metropolitan CouncilParks and Open Space Commission's 
98.11 	levies, and cities, counties, and towns in the metropolitan area, respectively. In preparing 
98.12 	or amending the policy plan the councilcommissioner of administration shall consult with 
98.13 	and make maximum use of the expertise of the commission. The policy plan shall include 
98.14 	a five-year capital improvement program, which shall be revised periodically, and shall 
98.15 	establish criteria and priorities for the allocation of funds for such acquisition and 
98.16 	development. The legislature in each bonding measure shall designate an anticipated level 
98.17 	of funding for this acquisition and development for each of the two succeeding bienniums.
98.18 		Subd. 2.Review, comment, hearing; revision. Before adopting the policy plan, the 
98.19 	council commissioner of administration shall submit the proposed plan to the parks and 
98.20 	open space commission for its review, and the commission shall report its comments to the 
98.21 	council commissioner of administration within 60 days. The council commissioner of 
98.22 	administration shall hold a public hearing on the proposed policy plan at such time and 
98.23 	place in the metropolitan area as it shall determine. Not less than 15 days before the hearing, 
98.24 	the councilcommissioner of administration shall publish notice thereof in a newspaper or 
98.25 	newspapers having general circulation in the metropolitan area, stating the date, time and 
98.26 	place of hearing, and the place where the proposed policy plan and commission comments 
98.27 	may be examined by any interested person. At any hearing interested persons shall be 
98.28 	permitted to present their views on the policy plan, and the hearing may be continued from 
98.29 	time to time. After receipt of the commission's report and hearing, the councilcommissioner 
98.30 	of administration may revise the proposed plan giving appropriate consideration to all 
98.31 	comments received, and thereafter shall adopt the plan by resolution. An amendment to the 
98.32 	policy plan may be proposed by the council commissioner of administration or by the parks 
98.33 	and open space commission. At least every four years the councilcommissioner of 
98.34 	administration shall engage in a comprehensive review of the policy plan, development 
98.35 	guide sections, comprehensive plans, capital improvement programs and other plans in 
99.1 	substantial conformance with the requirements of subdivision 1 which have been adopted 
99.2 	by the council commissioner of administration.

99.3 	Sec. 3. Minnesota Statutes 2016, section 473.301, subdivision 2, is amended to read:
99.4 		Subd. 2.Policy plan. "Policy plan" means a plan adopted by the council commissioner 
99.5 	of administration pursuant to section 473.147, generally describing the extent, type and 
99.6 	location of regional recreation open space needed for the metropolitan area and the timing 
99.7 	of its acquisition and development.

99.8 	Sec. 4. Minnesota Statutes 2016, section 473.303, is amended to read:
99.9 	473.303 METROPOLITAN PARKS AND OPEN SPACE COMMISSION.
99.10 		Subdivision 1.General. A Metropolitan Parks and Open Space Commission is established 
99.11 	as an agency of the councilto carry out the purposes and activities specified in sections 
99.12 	473.301 to 473.341 and to serve as the governing body of the district and shall be organized 
99.13 	and structured as provided in this section.
99.14 		Subd. 2.Membership; appointments. (a) The agencycommission consists of eight 
99.15 	members, plus a chair appointed as provided in subdivision 3. The Metropolitan Council
99.16 	governor shall appoint the eight members on a nonpartisan basis after consultation with the 
99.17 	members of the legislature from the district for which the member is to be appointed. The 
99.18 	consultation with legislators in the affected district must include informing each legislator 
99.19 	of the name, address, and background of each candidate for appointment and soliciting and 
99.20 	reporting to the appointments committee the recommendation of each legislator on the 
99.21 	appointment.
99.22 	(b) In addition to the notice required in section 15.0597, subdivision 4, notice of vacancies 
99.23 	and expiration of terms must be published in newspapers of general circulation in the 
99.24 	metropolitan area and the appropriate districts. The councilcommission shall notify in 
99.25 	writing the governing bodies of the statutory and home rule charter cities, counties, and 
99.26 	towns having territory in the district for which the member is to be appointed. The notices 
99.27 	must describe the appointment process and invite participation and recommendations on 
99.28 	the appointment.
99.29 	(c) The councilcommission shall establish an appointments committee, composed of 
99.30 	members of the council governing bodies of the implementing agencies, to screen and review 
99.31 	candidates. Following the submission of member applications to the Metropolitan Council
99.32 	as provided under section 15.0597, subdivision 5, the appointments committee shall conduct 
100.1 	public meetings, following appropriate notice, to accept statements from or on behalf of 
100.2 	persons who have applied or been nominated for appointment and to allow consultation 
100.3 	with and secure the advice of the public and local elected officials. The committee shall 
100.4 	hold the meeting on each appointment in the district or in a reasonably convenient and 
100.5 	accessible location in the part of the metropolitan area in which the district is located. The 
100.6 	committee may consolidate meetings. Following the meetings, the committee shall submit 
100.7 	to the councilcommission a written report that lists the persons who have applied or been 
100.8 	nominated or recommended for the position, along with a description of the background 
100.9 	and qualifications of each. In making its recommendation, the committee specifically shall 
100.10 	consider evidence of the candidate's commitment to regularly communicate on issues before 
100.11 	the agency with Metropolitan Council members, legislators and local elected officials in 
100.12 	the district, and the committee shall report its findings on this subject in its written report 
100.13 	to the council commission.
100.14 	(d) One member shall be appointed from each of the following agency districts:
100.15 	(1) district A, consisting of council districts 1 and 2 Metropolitan Airports Commission 
100.16 	district A;
100.17 	(2) district B, consisting of council districts 3 and 4 Metropolitan Airports Commission 
100.18 	district B;
100.19 	(3) district C, consisting of council districts 5 and 6 Metropolitan Airports Commission 
100.20 	district C;
100.21 	(4) district D, consisting of council districts 7 and 8 Metropolitan Airports Commission 
100.22 	district D;
100.23 	(5) district E, consisting of council districts 9 and 10 Metropolitan Airports Commission 
100.24 	district E;
100.25 	(6) district F, consisting of council districts 11 and 12 Metropolitan Airports Commission 
100.26 	district F;
100.27 	(7) district G, consisting of council districts 13 and 14 Metropolitan Airports Commission 
100.28 	district G; and
100.29 	(8) district H, consisting of council districts 15 and 16 Metropolitan Airports Commission 
100.30 	district H.
100.31 		Subd. 3.Chair. The chair of the commission shall be appointed by the council governor 
100.32 	and shall be the ninth member of the commission and shall meet all qualifications established 
100.33 	for members, except the chair need only reside within the metropolitan area. The chair shall 
101.1 	preside at all meetings of the commission, if present, and shall perform all other duties and 
101.2 	functions assigned by the commission or by law. The commission may appoint from among 
101.3 	its members a vice-chair to act for the chair during temporary absence or disability.
101.4 		Subd. 3a.Members; duties. Each member shall communicate regularly with Metropolitan 
101.5 	Council members, legislators, and local government officials in the district the member 
101.6 	represents.
101.7 		Subd. 4.Qualifications. Each member shall be a resident of the commission district for 
101.8 	which appointed and shall not during terms of office as a commission member hold the 
101.9 	office of Metropolitan Council member, or be a member of any metropolitan agency or hold 
101.10 	any judicial office.
101.11 		Subd. 4a.Terms. Following each apportionment of Metropolitan CouncilAirports 
101.12 	Commission districts, as provided under section 473.123, subdivision 3a 473.604, subdivision 
101.13 	1a, the Metropolitan Councilgovernor shall appoint a chair and eight commission members 
101.14 	from newly drawn districts. The terms of members and chairs are as follows: members 
101.15 	representing commission districts A, B, C, and D, and the chair of the commission, for terms 
101.16 	ending the first Monday in January of the year ending in the numeral "7"; members 
101.17 	representing commission districts E, F, G, and H, for terms ending the first Monday in 
101.18 	January of the year ending in the numeral "5." Thereafter the term of each member and the 
101.19 	chair is four years, with terms ending the first Monday in January, except that all terms 
101.20 	expire on the effective date of the next apportionment. The chair shall continue to serve 
101.21 	until a successor is appointed and qualified. A member shall continue to serve the commission 
101.22 	district until a successor is appointed and qualified; except that, following each 
101.23 	apportionment, the member shall continue to serve at large until the Metropolitan Council
101.24 	governor appoints eight commission members as provided under subdivision 2, to serve 
101.25 	terms as provided under this subdivision. The appointments to the commission must be 
101.26 	made by the first Monday in May of the year in which the term ends.
101.27 		Subd. 5.Vacancies; removal. If the office of any commission member or the chair 
101.28 	becomes vacant, the vacancy shall be filled by appointment in the same manner the original 
101.29 	appointment was made. Members, other than the chair, may be removed by the council 
101.30 	governor only for cause. The chair may be removed at the pleasure of the council governor.
101.31 		Subd. 6.Compensation. Members and the chair shall serve without compensation but 
101.32 	shall be reimbursed for all actual and necessary expenses incurred in the performance of 
101.33 	duties as determined by the Metropolitan Council Legislative Coordinating Commission.

102.1 	Sec. 5. Minnesota Statutes 2016, section 473.313, is amended to read:
102.2 	473.313 MASTER PLANS.
102.3 		Subdivision 1.Adoption. Each park district located wholly or partially within the 
102.4 	metropolitan area, and each county in the metropolitan area not wholly within a park district, 
102.5 	shall prepare, after consultation with all affected municipalities, and submit to the 
102.6 	Metropolitan Council commissioner of administration, and from time to time revise and 
102.7 	resubmit to the council commissioner of administration, a master plan and annual budget 
102.8 	for the acquisition and development of regional recreation open space located within the 
102.9 	district or county, consistent with the council's commissioner of administration's policy 
102.10 	plan.
102.11 		Subd. 2.Council Commissioner of administration review. The Metropolitan Council
102.12 	commissioner of administration shall review with the advice of the commission, each master 
102.13 	plan to determine whether it is consistent with the council's commissioner of administration's
102.14 	policy plan. If it is not consistent, the council commissioner of administration shall return 
102.15 	the plan with its comments to the municipalities, park district or county for revision and 
102.16 	resubmittal.

102.17 	Sec. 6. Minnesota Statutes 2016, section 473.315, subdivision 1, is amended to read:
102.18 		Subdivision 1.To certain metro governments or agencies. The Metropolitan Council 
102.19 	with the advice of the commission may make grants, from any funds available to it for 
102.20 	recreation open space purposes, to any implementing agency, as defined in section 473.351, 
102.21 	to cover the cost, or any portion of the cost, of acquiring or developing regional recreation 
102.22 	open space in accordance with the policy plan; and all such agencies may enter into contracts 
102.23 	for this purpose or rights or interests therein. The cost of acquisition shall include any 
102.24 	payments required for relocation pursuant to sections 117.50 to 117.56.

102.25 	Sec. 7. Minnesota Statutes 2016, section 473.325, is amended to read:
102.26 	473.325 SALES OF G.O. REFUNDING BONDS.
102.27 		Subdivision 1.Up to $40,000,000 outstanding. The Metropolitan CouncilParks and 
102.28 	Open Space Commission may by resolution authorize the issuance of general obligation 
102.29 	bonds of the councilcommission such that the amount outstanding and undischarged at any 
102.30 	time shall not exceed $40,000,000, for which its full faith and credit and taxing powers shall 
102.31 	be pledged, for the acquisition and betterment of regional recreation open space in accordance 
102.32 	with sections 473.301 to 473.341. The Metropolitan CouncilParks and Open Space 
103.1 	Commission may also issue general obligation bonds for the purpose of refunding outstanding 
103.2 	obligations issued hereunder. The amount of refunding bonds that may be issued from time 
103.3 	to time shall not be subject to the dollar limitation contained in this subdivision nor shall 
103.4 	such refunding bonds be included in computing the amount of bonds that may be issued 
103.5 	within such dollar limitation.
103.6 		Subd. 2.Chapter 475 applies; exceptions. The Metropolitan CouncilParks and Open 
103.7 	Space Commission shall sell and issue the bonds in the manner provided in chapter 475, 
103.8 	and shall have the same powers and duties as a municipality issuing bonds under that law, 
103.9 	except that the approval of a majority of the electors shall not be required and the net debt 
103.10 	limitations shall not apply. The terms of each series of bonds shall be fixed so that the 
103.11 	amount of principal and interest on all outstanding and undischarged bonds, together with 
103.12 	the bonds proposed to be issued, due in any year shall not exceed 0.01209 percent of 
103.13 	estimated market value of all taxable property in the metropolitan area as last finally equalized 
103.14 	prior to a proposed issue. The bonds shall be secured in accordance with section 475.61, 
103.15 	subdivision 1, and any taxes required for their payment shall be levied by the council
103.16 	commission, shall not affect the amount or rate of taxes which may be levied by the council
103.17 	commission for other purposes, shall be spread against all taxable property in the metropolitan 
103.18 	area and shall not be subject to limitation as to rate or amount. Any taxes certified by the 
103.19 	council commission to the county auditors for collection shall be reduced by the amount 
103.20 	received by the council commission from the commissioner of management and budget or 
103.21 	the federal government for the purpose of paying the principal and interest on bonds to 
103.22 	which the levy relates. The councilcommission shall certify the fact and amount of all 
103.23 	money so received to the county auditors, and the auditors shall reduce the levies previously 
103.24 	made for the bonds in the manner and to the extent provided in section 475.61, subdivision 
103.25 	3.
103.26 		Subd. 3.Temporary loans. The Metropolitan Council Parks and Open Space 
103.27 	Commission shall have the power, after the authorization of bonds pursuant to this section, 
103.28 	to provide funds immediately required for the purposes of sections 473.301 to 473.341, by 
103.29 	effecting temporary loans upon such terms as it shall by resolution determine, evidenced 
103.30 	by notes due in not exceeding 24 months from the date thereof, payable to the order of the 
103.31 	lender or to the bearer, to be repaid with interest from the proceeds of such bonds when 
103.32 	issued and delivered to the purchaser thereof. Such temporary loans may be made without 
103.33 	public advertisement.
103.34 		Subd. 4.Full faith, credit switch. In the event that the full faith and credit pledge of 
103.35 	the Metropolitan CouncilParks and Open Space Commission for the payment of principal 
104.1 	and interest on the bonds issued under this section is superseded and replaced by the full 
104.2 	faith and credit pledge of the state of Minnesota, by binding and irrevocable legislation, 
104.3 	such action shall extinguish the full faith and credit pledge theretofore made for all bonds 
104.4 	and the interest thereon issued pursuant to this section.

104.5 	Sec. 8. Minnesota Statutes 2016, section 473.334, subdivision 1, is amended to read:
104.6 		Subdivision 1.Generally. In determining the special benefit received by regional 
104.7 	recreation open space system property as defined in sections 473.301 to 473.351 from an 
104.8 	improvement for which a special assessment is determined, the governing body shall not 
104.9 	consider any use of the property other than as regional recreation open space property at 
104.10 	the time the special assessment is determined. The Metropolitan Councilcommission shall 
104.11 	not be bound by the determination of the governing body of the city but may pay a lesser 
104.12 	amount, as agreed upon by the Metropolitan Councilcommission and the governing body 
104.13 	of the city, as they determine is the measure of benefit to the land from the improvement.

104.14 	Sec. 9. Minnesota Statutes 2016, section 473.341, is amended to read:
104.15 	473.341 TAX EQUIVALENTS.
104.16 	In the year in which the Metropolitan Councilcommission or an implementing agency 
104.17 	as defined in section 473.351 acquires fee title to any real property included in the regional 
104.18 	recreation open space system, the Metropolitan Councilcommission shall grant sufficient 
104.19 	funds to the appropriate implementing agency to make the tax equivalent payment required 
104.20 	in this section. The councilcommission shall determine the total amount of property taxes 
104.21 	levied on the real property for municipal or township purposes for collection in the year in 
104.22 	which title passed. The municipality or township in which the real property is situated shall 
104.23 	be paid 180 percent of the total tax amount determined by the council commission. If the 
104.24 	implementing agency has granted a life estate to the seller of the real property and the seller 
104.25 	is obligated to pay property taxes on the property, this tax equivalent shall not be paid until 
104.26 	the life estate ends. All amounts paid pursuant to this section are costs of acquisition of the 
104.27 	real property acquired.

104.28 	Sec. 10. Minnesota Statutes 2016, section 473.351, subdivision 1, is amended to read:
104.29 		Subdivision 1.Definitions. The definitions in this subdivision apply to this section.
104.30 	(a) "Implementing agency" means the counties of Anoka, Washington, Ramsey, Scott, 
104.31 	Carver, Dakota, the city of St. Paul, the city of Bloomington, the Minneapolis Park and 
104.32 	Recreation Board, and the Three Rivers Park District.
105.1 	(b) "Operation and maintenance expenditures" means the cost of providing for the 
105.2 	operation and maintenance of waters, lands, and facilities that are a part of the metropolitan 
105.3 	area regional park and open space system, including but not limited to, the provision of fire, 
105.4 	police, maintenance, forestry, rehabilitation expenses pertaining to routine care, and the 
105.5 	allocation of the administrative overhead costs of the regional park and open space systems.
105.6 	(c) "Operation and maintenance money" means money appropriated by the legislature 
105.7 	to the commissioner of employment and economic development for distribution by the 
105.8 	Metropolitan Council Parks and Open Space Commission.
105.9 	(d) "Regional recreation open space systems" means those parks that have been designated 
105.10 	by the Metropolitan Councilcommissioner of administration under section 473.145.

105.11 	Sec. 11. Minnesota Statutes 2016, section 473.351, subdivision 2, is amended to read:
105.12 		Subd. 2.Metropolitan CouncilParks and Open Space Commission obligation.
 105.13 	Annually before August 1 the Metropolitan Councilcommission shall distribute grant money 
105.14 	received from the commissioner of natural resources to fund the operation and maintenance 
105.15 	expenditures of the implementing agencies for the operation and maintenance of regional 
105.16 	park and open space systems. The Metropolitan Councilcommission shall annually report 
105.17 	to the legislature the amount distributed to each implementing agency and its estimate of 
105.18 	the percentage of operation and maintenance expenditures paid for with operation and 
105.19 	maintenance money.

105.20 	Sec. 12. Minnesota Statutes 2016, section 473.351, subdivision 3, is amended to read:
105.21 		Subd. 3.Allocation formula. By July 1 of every year each implementing agency must 
105.22 	submit to the Metropolitan Parks and Open Space Commission a statement of the next 
105.23 	annual anticipated operation and maintenance expenditures of the regional recreation open 
105.24 	space parks systems within their respective jurisdictions and the previous year's actual 
105.25 	expenditures. After reviewing the actual expenditures submitted and by July 15 of each 
105.26 	year, the Metropolitan Parks and Open Space Commission shall forward to the Metropolitan 
105.27 	Council the funding requests from the implementing agencies based on the actual 
105.28 	expenditures made. The Metropolitan Council shall distribute the operation and maintenance 
105.29 	money as follows:
105.30 	(1) 40 percent based on the use that each implementing agency's regional recreation 
105.31 	open space system has in proportion to the total use of the metropolitan regional recreation 
105.32 	open space system;
106.1 	(2) 40 percent based on the operation and maintenance expenditures made in the previous 
106.2 	year by each implementing agency in proportion to the total operation and maintenance 
106.3 	expenditures of all of the implementing agencies; and
106.4 	(3) 20 percent based on the acreage that each implementing agency's regional recreation 
106.5 	open space system has in proportion to the total acreage of the metropolitan regional 
106.6 	recreation open space system. The 80 percent natural resource management land acreage 
106.7 	of the park reserves must be divided by four in calculating the distribution under this clause.
106.8 	Each implementing agency must receive no less than 40 percent of its actual operation 
106.9 	and maintenance expenses to be incurred in the current calendar year budget as submitted 
106.10 	to the parks and open space commission. If the available operation and maintenance money 
106.11 	is less than the total amount determined by the formula including the preceding, the 
106.12 	implementing agencies will share the available money in proportion to the amounts they 
106.13 	would otherwise be entitled to under the formula.

106.14 	Sec. 13. BONDS.
 106.15 	Bonds authorized by Minnesota Statutes, section 473.325, that are outstanding on the 
106.16 	effective date of this article must be paid and retired according to those sections and the 
106.17 	terms of the bonds. The auditors of the metropolitan counties shall see to the administration 
106.18 	of this section.

106.19 	Sec. 14. ASSET ALLOCATION.
 106.20 	Assets of the Metropolitan Council attributable to the regional recreation open space 
106.21 	systems defined in Minnesota Statutes, section 473.351, shall be transferred to the 
106.22 	Metropolitan Parks and Open Space Commission.

106.23 	Sec. 15. TAX EQUIVALENTS.
 106.24 	If tax equivalents under Minnesota Statutes, section 473.341, are owned by an 
106.25 	implementing agency as defined in Minnesota Statutes, section 473.351, to a municipality 
106.26 	as defined in Minnesota Statutes, section 473.301, that is not an implementing agency, on 
106.27 	the termination of a life estate, the implementing agency must make the payment.

106.28 	Sec. 16.  REPEALER.
 106.29 	Minnesota Statutes 2016, section 473.121, subdivision 12, is repealed.

107.1 	Sec. 17. EFFECTIVE DATE.
 107.2 	This article is effective July 1, 2018.

107.3 	ARTICLE 8
107.4 	TRANSPORTATION

107.5 	Section 1. Minnesota Statutes 2016, section 117.57, subdivision 3, is amended to read:
107.6 		Subd. 3.Relation to regional railroad authorities. An authority shall not be adjudged 
107.7 	to have a superior public use to that of a regional railroad authority as defined in section 
107.8 	398A.01, a railroad property which has been identified and approved as a light rail corridor 
107.9 	by the former Metropolitan Council under chapter 473, or a state trail covered by section 
107.10 	85.015.

107.11 	Sec. 2. Minnesota Statutes 2016, section 160.165, subdivision 1, is amended to read:
107.12 		Subdivision 1.Definitions. For the purposes of this section, the following terms have 
107.13 	the meanings given:
107.14 	(1) "project" means construction work to maintain, construct, reconstruct, or improve a 
107.15 	street or highway or for a rail transit project;
107.16 	(2) "substantial business impacts" means impairment of road access, parking, or visibility 
107.17 	for one or more business establishments as a result of a project, for a minimum period of 
107.18 	one month; and
107.19 	(3) "transportation authority" means the commissioner, as to trunk highways and rail 
107.20 	transit projects; the county board, as to county state-aid highways and county highways; 
107.21 	the town board, as to town roads; and statutory or home rule charter cities, as to city streets; 
107.22 	the Metropolitan Council, for rail transit projects located entirely within the metropolitan 
107.23 	area as defined in section 473.121, subdivision 2; and the commissioner, for all other rail 
107.24 	transit projects.

107.25 	Sec. 3. Minnesota Statutes 2016, section 160.93, subdivision 1, is amended to read:
107.26 		Subdivision 1.Fees authorized. To improve efficiency and provide more options to 
107.27 	individuals traveling in a trunk highway corridor, the commissioner of transportation may 
107.28 	charge user fees to owners or operators of single-occupant vehicles using dynamic shoulder 
107.29 	lanes as designated by the commissioner and any designated high-occupancy vehicle lanes. 
107.30 	The fees may be collected using electronic or other toll-collection methods and may vary 
107.31 	in amount with the time of day and level of traffic congestion within the corridor. The 
108.1 	commissioner shall consult with the Metropolitan Council and obtain necessary federal 
108.2 	authorizations before implementing user fees on a high-occupancy vehicle lane or dynamic 
108.3 	shoulder lane. Fees under this section are not subject to section 16A.1283.

108.4 	Sec. 4. Minnesota Statutes 2016, section 160.93, subdivision 2, is amended to read:
108.5 		Subd. 2.Deposit of revenues; appropriation. (a) Except as provided in subdivision 
108.6 	2a, money collected from fees authorized under subdivision 1 must be deposited in a 
108.7 	high-occupancy vehicle lane user fee account in the special revenue fund. A separate account 
108.8 	must be established for each trunk highway corridor. Money in the account is appropriated 
108.9 	to the commissioner.
108.10 	(b) From this appropriation the commissioner shall first repay the trunk highway fund 
108.11 	and any other fund source for money spent to install, equip, or modify the corridor for the 
108.12 	purposes of subdivision 1, and then shall pay all the costs of implementing and administering 
108.13 	the fee collection system for that corridor.
108.14 	(c) The commissioner shall spend remaining money in the account as follows:
108.15 	(1) one-half must be spent for transportation capital improvements within the corridor; 
108.16 	and
108.17 	(2) one-half must be transferred to the Metropolitan Councilspent for expansion and 
108.18 	improvement of bus transit services within the corridor beyond the level of service provided 
108.19 	on the date of implementation of subdivision 1.

108.20 	Sec. 5. Minnesota Statutes 2016, section 160.93, subdivision 2a, is amended to read:
108.21 		Subd. 2a.I-35W high-occupancy vehicle and dynamic shoulder lane account. (a) 
108.22 	An I-35W high-occupancy vehicle and dynamic shoulder lane account is established in the 
108.23 	special revenue fund. Money collected from fees authorized under subdivision 1 for the 
108.24 	marked Interstate Highway 35W (I-35W) corridor must be deposited in the account and 
108.25 	used as described in this subdivision. Money in the account is appropriated to the 
108.26 	commissioner.
108.27 	(b) During the first year of revenue operations, the commissioner shall use the money 
108.28 	received in that year to pay the costs of operating and administering the fee collection system 
108.29 	within the corridor, up to $1,000,000. Any remaining money must be transferred to the 
108.30 	Metropolitan Councilused for improvement of bus transit services within the I-35W corridor 
108.31 	including transit capital expenses.
109.1 	(c) During the second and subsequent years of revenue operations, the commissioner 
109.2 	shall use money in the account as follows:
109.3 	(1) each year, allocate the lesser amount of $1,000,000 or 75 percent of the revenues for 
109.4 	operating and administering the fee collection system within the corridor;
109.5 	(2) transferuse the remaining amount up to the amount allocated under clause (1) to the 
109.6 	Metropolitan Council for improvement of bus transit within the corridor including capital 
109.7 	expenses; and
109.8 	(3) allocate any remaining amount as follows: (i) 25 percent to the commissioner for 
109.9 	operating and administeringoperate and administer the fee collection system within the 
109.10 	corridor and for transportation capital improvements that are consistent with the goals of 
109.11 	the urban partnership agreement and that are located within the corridor and (ii) 75 percent 
109.12 	to the Metropolitan Council for improvement of bus transit services within the corridor 
109.13 	including transit capital expenses.

109.14 	Sec. 6. Minnesota Statutes 2016, section 162.09, subdivision 4, is amended to read:
109.15 		Subd. 4.Federal census is conclusive. (a) In determining whether any city has a 
109.16 	population of 5,000 or more, the last federal census shall be conclusive, except as otherwise 
109.17 	provided in this subdivision.
109.18 	(b) The governing body of a city may contract with the United States Bureau of the 
109.19 	Census to take a special census. A certified copy of the results of the census shall be filed 
109.20 	with the appropriate state authorities by the city. The result of the census shall be the 
109.21 	population of the city for the purposes of any law providing that population is a required 
109.22 	qualification for distribution of highway aids under chapter 162. The special census shall 
109.23 	remain in effect until the next federal census is completed and filed. The expense of taking 
109.24 	the special census shall be paid by the city.
109.25 	(c) If an entire area not heretofore incorporated as a city is incorporated as such during 
109.26 	the interval between federal censuses, its population shall be determined by its incorporation 
109.27 	census. The incorporation census shall be determinative of the population of the city only 
109.28 	until the next federal census.
109.29 	(d) The population of a city created by the consolidation of two or more previously 
109.30 	incorporated cities shall be determined by the most recent population estimate of the 
109.31 	Metropolitan Council or state demographer, until the first federal decennial census or special 
109.32 	census taken after the consolidation.
110.1 	(e) The population of a city that is not receiving a municipal state-aid street fund 
110.2 	apportionment shall be determined, upon request of the city, by the most recent population 
110.3 	estimate of the Metropolitan Council or state demographer. A municipal state-aid street 
110.4 	fund apportionment received by the city must be based on this population estimate until the 
110.5 	next federal decennial census or special census.
110.6 	(f) A city that is found in the most recent federal decennial census to have a population 
110.7 	of less than 5,000 is deemed for the purposes of this chapter and the Minnesota Constitution, 
110.8 	article XIV, to have a population of 5,000 or more under the following circumstances: (1) 
110.9 	immediately before the most recent federal decennial census, the city was receiving municipal 
110.10 	state-aid street fund distributions; and (2) the population of the city was found in the most 
110.11 	recent federal decennial census to be less than 5,000. Following the end of the first calendar 
110.12 	year that ends in "5" after the decennial census and until the next decennial census, the 
110.13 	population of any city must be determined under paragraphs (a) to (e).

110.14 	Sec. 7. Minnesota Statutes 2016, section 169.306, is amended to read:
110.15 	169.306 USE OF SHOULDERS BY BUSES.
110.16 	(a) A road authority, as defined in section 160.02, subdivision 25, is authorized to permit 
110.17 	transit buses and Metro Mobility buses use of a shoulder, as designated by the road authority, 
110.18 	of a freeway or expressway, as defined in section 160.02, in Minnesota.
110.19 	(b) If a road authority permits the use of a freeway or expressway shoulder by transit 
110.20 	buses, the road authority shall permit the use on that shoulder of a bus (1) with a seating 
110.21 	capacity of 40 passengers or more operated by a motor carrier of passengers, as defined in 
110.22 	section 221.012, subdivision 26, while operating in intrastate commerce or (2) providing 
110.23 	regular route transit service, as defined in section 174.22, subdivision 8, or Metro Mobility 
110.24 	services, and operated by or under contract with the Metropolitan Council Department of 
110.25 	Transportation, a local transit authority, or a transit authority created by the legislature. 
110.26 	Drivers of these buses must have adequate training in the requirements of paragraph (c), as 
110.27 	determined by the commissioner.
110.28 	(c) Buses authorized to use the shoulder under this section may be operated on the 
110.29 	shoulder only when main-line traffic speeds are less than 35 miles per hour, except as 
110.30 	provided for in paragraph (f). Drivers of buses being operated on the shoulder may not 
110.31 	exceed the speed of main-line traffic by more than 15 miles per hour and may never exceed 
110.32 	35 miles per hour, except as provided for in paragraph (f). Drivers of buses being operated 
110.33 	on the shoulder must yield to merging, entering, and exiting traffic and must yield to other 
111.1 	vehicles on the shoulder. Buses operated on the shoulder must be registered with the 
111.2 	Department of Transportation.
111.3 	(d) For the purposes of this section, the term "Metro Mobility bus" means a motor vehicle 
111.4 	of not less than 20 feet in length engaged in providing special transportation services under 
111.5 	section 473.386 that is:
111.6 	(1) operated by or under contract with a public or private entity receiving financial 
111.7 	assistance to provide transit services from the Metropolitan Council or the commissioner 
111.8 	of transportation; and
111.9 	(2) authorized by a road authority to use freeway or expressway shoulders.
111.10 	(e) This section does not apply to the operation of buses on dynamic shoulder lanes.
111.11 	(f) The commissioner may authorize different operating conditions and maximum speeds, 
111.12 	not to exceed the posted speed limit, based upon an engineering study and recommendation 
111.13 	by the road authority. The engineering study must be conducted by the road authority and 
111.14 	must conform with the manual and specifications adopted under section 169.06, subdivision 
111.15 	1, and applicable state and federal standards. The road authority shall consult the public 
111.16 	transit operator before recommending operating conditions different from those authorized 
111.17 	by law.

111.18 	Sec. 8. Minnesota Statutes 2016, section 169.781, subdivision 1, is amended to read:
111.19 		Subdivision 1.Definitions. For purposes of sections 169.781 to 169.783:
111.20 	(a) "Commercial motor vehicle":
111.21 	(1) means a motor vehicle as defined in section 169.011, subdivision 16, paragraph (a), 
111.22 	or combination of motor vehicles used to transport passengers or property if the motor 
111.23 	vehicle:
111.24 	(i) has a gross vehicle weight of more than 26,000 pounds;
111.25 	(ii) is a vehicle in a combination of more than 26,000 pounds;
111.26 	(iii) is a bus; or
111.27 	(iv) is of any size and is used in the transportation of hazardous materials that are required 
111.28 	to be placarded under Code of Federal Regulations, title 49, parts 100-185; and
111.29 	(2) does not include (i) a school bus or Head Start bus displaying a certificate under 
111.30 	section 169.451, or (ii) a bus operated by the Metropolitan Council Department of 
111.31 	Transportation or by a local transit commission created in chapter 458A.
112.1 	(b) "Commissioner" means the commissioner of public safety.
112.2 	(c) "Owner" means a person who owns, or has control, under a lease of more than 30 
112.3 	days' duration, of one or more commercial motor vehicles.

112.4 	Sec. 9. Minnesota Statutes 2016, section 169.791, subdivision 5, is amended to read:
112.5 		Subd. 5.Exemptions. Buses or other commercial vehicles operated by the Metropolitan 
112.6 	Council commissioner of transportation, commercial vehicles required to file proof of 
112.7 	insurance pursuant to chapter 221, and school buses as defined in section 171.01, subdivision 
112.8 	45, are exempt from this section.

112.9 	Sec. 10. Minnesota Statutes 2016, section 169.792, subdivision 11, is amended to read:
112.10 		Subd. 11.Exemptions. Buses or other commercial vehicles operated by the Metropolitan 
112.11 	Council Department of Transportation, commercial vehicles required to file proof of 
112.12 	insurance pursuant to chapter 221, and school buses as defined in section 171.01, subdivision 
112.13 	45, are exempt from this section.

112.14 	Sec. 11. Minnesota Statutes 2016, section 174.03, subdivision 1, is amended to read:
112.15 		Subdivision 1.Statewide transportation plan; priorities; schedule of expenditures.
 112.16 	In order to best meet the present and future transportation needs of the public, to insure a 
112.17 	strong state economy, to make most efficient use of public and private funds, to lessen 
112.18 	adverse environmental impacts of the transportation sector, and to promote the more efficient 
112.19 	use of energy and other resources for transportation purposes, the commissioner shall:
112.20 	(1) three months after notification that the department is ready to commence operations 
112.21 	and prior to the drafting of the statewide transportation plan, hold public hearings as may 
112.22 	be appropriate solely for the purpose of receiving suggestions for future transportation 
112.23 	alternatives and priorities for the state. The Metropolitan Council, regional development 
112.24 	commissions, and port authorities shall appear at the hearings and submit information 
112.25 	concerning transportation-related planning undertaken and accomplished by these agencies. 
112.26 	Other political subdivisions may appear and submit such information at the hearings. These 
112.27 	hearings shall be completed no later than six months from the date of the commissioner's 
112.28 	notification;
112.29 	(2) develop, adopt, revise, and monitor a statewide transportation plan, taking into 
112.30 	account the suggestions and information submitted at the public hearings held pursuant to 
112.31 	clause (1). The plan shall incorporate all modes of transportation including bicycle 
112.32 	commutation and recreation and provide for the interconnection and coordination of different 
113.1 	modes of transportation. The commissioner shall evaluate all transportation programs and 
113.2 	facilities proposed for inclusion in the plan in terms of economic costs and benefits, safety 
113.3 	aspects, impact on present and planned land uses, environmental effects, energy efficiency, 
113.4 	national transportation policies and priorities, and availability of federal and other financial 
113.5 	assistance;
113.6 	(3) based upon the statewide transportation plan, develop statewide transportation 
113.7 	priorities and schedule authorized public capital improvements and other authorized public 
113.8 	transportation expenditures pursuant to the priorities. As permitted by the federal Surface 
113.9 	Transportation Program and subject to available funding, the commissioner shall give serious 
113.10 	consideration to prioritizing for funding those trunk highway projects in the metropolitan 
113.11 	area, as defined in section 473.121, subdivision 2, that are consistent with policies included 
113.12 	in the Metropolitan Council's metropolitan development guide, transportation policy plan, 
113.13 	and regional development framework, and that have been awarded funding through the 
113.14 	federal Surface Transportation Program. In responding to an unforeseen, catastrophic event 
113.15 	affecting the state transportation system, the commissioner may, upon written notification 
113.16 	to the chairs of the senate and house of representatives committees with jurisdiction over 
113.17 	transportation policy and finance, prioritize projects without regard to availability of federal 
113.18 	funding; and
113.19 	(4) complete the plan and priorities required by this subdivision no later than July 1, 
113.20 	1978. Upon completion of the plan and priorities, the commissioner shall prepare and 
113.21 	periodically revise, as necessary, the schedule of authorized public transportation 
113.22 	expenditures. The plan, priorities, and schedule are exempt from the provisions of the 
113.23 	Administrative Procedure Act.

113.24 	Sec. 12. Minnesota Statutes 2016, section 174.03, subdivision 4, is amended to read:
113.25 		Subd. 4.Other duties. The commissioner shall:
113.26 	(1) construct and maintain transportation facilities as authorized by law;
113.27 	(2) cooperate with, and may provide technical and financial assistance to, the Metropolitan 
113.28 	Council and regional development commissions in the regional transportation planning 
113.29 	process, in accordance with mutually acceptable terms and conditions;
113.30 	(3) cooperate with, and may provide planning and technical assistance upon the request 
113.31 	of, any political subdivision or other governmental agency in accordance with mutually 
113.32 	accepted terms and conditions, except as otherwise restricted by law; and
114.1 	(4) develop, revise, and monitor a statewide rail transportation plan as part of the statewide 
114.2 	transportation planning process, including a study and evaluation of alternative methods 
114.3 	for insuring adequate and economical transportation of agricultural commodities, supplies, 
114.4 	and other goods to and from rural areas of the state. The plan shall include an analysis of 
114.5 	rail lines in the state for the purpose of determining (i) eligibility of rail lines for assistance 
114.6 	under federal and state rail assistance programs, (ii) eligibility of rail lines for inclusion in 
114.7 	the state rail bank, and (iii) the actions required by the state to insure the continuation of 
114.8 	rail service that meets essential state needs and objectives.

114.9 	Sec. 13. Minnesota Statutes 2016, section 174.03, subdivision 5, is amended to read:
114.10 		Subd. 5.Regional transportation planning. The Metropolitan Council, pursuant to 
114.11 	section 473.146, and the regional development commissions shall develop regional long-range 
114.12 	transportation policy plans in cooperation with the commissioner and local units of 
114.13 	government. Upon promulgation of the statewide transportation plan, and periodically as 
114.14 	necessary thereafter, each regional policy plan shall be reviewed and amended, if necessary, 
114.15 	by the appropriate regional agency to insure that the regional policy plan is not in conflict 
114.16 	with the statewide transportation plan.

114.17 	Sec. 14. Minnesota Statutes 2016, section 174.03, subdivision 6a, is amended to read:
114.18 		Subd. 6a.Economic analysis of nonhighway alternatives. If the commissioner considers 
114.19 	congestion pricing, tolls, mileage pricing, or public-private partnerships in order to meet 
114.20 	the transportation needs of commuters in the department's metropolitan district between 
114.21 	2001 and 2020, the commissioner shall, in cooperation with the Metropolitan Council and 
114.22 	the regional railroad authorities in the district, compare the economics of these financing 
114.23 	methods with the economics of nonhighway alternatives for moving commuters. The 
114.24 	commissioner shall analyze the economics as they relate to both individuals and to the 
114.25 	transportation system.

114.26 	Sec. 15. Minnesota Statutes 2016, section 174.04, subdivision 1, is amended to read:
114.27 		Subdivision 1.Review of application. Any state agency which receives an application 
114.28 	from a regional development commission, metropolitan council, public transit commission, 
114.29 	airport commission, port authority, or other political subdivision of the state, or any nonpublic 
114.30 	organization, for financial assistance for transportation planning, capital expenditures, or 
114.31 	operations to any state or federal agency, shall first submit the application to the 
114.32 	commissioner of transportation. The commissioner shall review the application to determine 
114.33 	whether it contains matters that substantially affect the statewide transportation plan and 
115.1 	priorities. If the application does not contain such matters, the commissioner shall within 
115.2 	15 days after receipt return the application to the applicant political subdivision or nonpublic 
115.3 	organization for forwarding to the appropriate agency. If the application contains such 
115.4 	matters, the commissioner shall review and comment on the application as being consistent 
115.5 	with the plan and priorities. The commissioner shall return the application together with 
115.6 	comments within 45 days after receipt to the applicant political subdivision or nonpublic 
115.7 	organization for forwarding with the commissioner's comments to the appropriate agency.

115.8 	Sec. 16. Minnesota Statutes 2016, section 174.04, subdivision 2, is amended to read:
115.9 		Subd. 2.Designated agent. A regional development commission, metropolitan council,
115.10 	public transit commission, airport commission, port authority, or any other political 
115.11 	subdivision of the state, or any nonpublic organization, may designate the commissioner as 
115.12 	its agent to receive and disburse funds by entering into an agreement with the commissioner 
115.13 	prescribing the terms and conditions of the receipt and expenditure of the funds in accordance 
115.14 	with federal and state laws, rules, and regulations.

115.15 	Sec. 17. Minnesota Statutes 2016, section 174.247, is amended to read:
115.16 	174.247 ANNUAL TRANSIT REPORT.
115.17 	(a) By February 15 annually, the commissioner shall submit a report to the legislature 
115.18 	on transit services outside the metropolitan area. The Metropolitan Council and Any public 
115.19 	transit system receiving assistance under section 174.24 shall provide assistance in creating 
115.20 	the report, as requested by the commissioner.
115.21 	(b) The report must include, at a minimum, the following:
115.22 	(1) a descriptive overview of public transit in Minnesota;
115.23 	(2) a descriptive summary of funding sources and assistance programs;
115.24 	(3) a summary of each public transit system receiving assistance under section 174.24;
115.25 	(4) data that identifies use of volunteers in providing transit service;
115.26 	(5) financial data that identifies for each public transit system and for each transit system 
115.27 	classification under section 174.24, subdivision 3b:
115.28 	(i) the operating and capital costs;
115.29 	(ii) each of the funding sources used to provide financial assistance; and
116.1 	(iii) for federal funds, the amount from each specific federal program under which 
116.2 	funding is provided;
116.3 	(6) a summary of the differences in program implementation requirements and aid 
116.4 	recipient eligibility between federal aid and state sources of funds;
116.5 	(7) in each odd-numbered year, an analysis of public transit system needs and operating 
116.6 	expenditures on an annual basis, which must include a methodology for identifying monetary 
116.7 	needs, and calculations of:
116.8 	(i) the total monetary needs for all public transit systems, for the year of the report and 
116.9 	the ensuing five years;
116.10 	(ii) the total expenditures from local sources for each transit system classification;
116.11 	(iii) the comprehensive transit assistance percentage for each transit system classification, 
116.12 	which equals (A) the expenditures identified under item (ii), for a transit system classification, 
116.13 	divided by (B) the amounts identified under subitem (A), plus the sum of state sources of 
116.14 	funds plus federal funds provided to all transit systems in that classification; and
116.15 	(iv) the amount of surplus or insufficient funds available for paying capital and operating 
116.16 	costs to fully implement the greater Minnesota transit investment plan under section 174.24, 
116.17 	subdivision 1a.

116.18 	Sec. 18. Minnesota Statutes 2016, section 174.285, subdivision 4, is amended to read:
116.19 		Subd. 4.Membership. (a) The council is composed of the following 1312 members:
116.20 	(1) one representative from the Office of the Governor;
116.21 	(2) one representative from the Council on Disability;
116.22 	(3) one representative from the Minnesota Public Transit Association;
116.23 	(4) the commissioner of transportation or a designee;
116.24 	(5) the commissioner of human services or a designee;
116.25 	(6) the commissioner of health or a designee;
116.26 	(7) the chair of the Metropolitan Council or a designee;
116.27 	(8)(7) the commissioner of education or a designee;
116.28 	(9)(8) the commissioner of veterans affairs or a designee;
116.29 	(10)(9) one representative from the Board on Aging;
117.1 	(11)(10) the commissioner of employment and economic development or a designee;
117.2 	(12)(11) the commissioner of commerce or a designee; and
117.3 	(13)(12) the commissioner of management and budget or a designee.
117.4 	(b) All appointments required by paragraph (a) must be completed by August 1, 2010.
117.5 	(c) The commissioner of transportation or a designee shall convene the first meeting of 
117.6 	the council within two weeks after the members have been appointed to the council. The 
117.7 	members shall elect a chair from their membership at the first meeting.
117.8 	(d) The Department of Transportation and the Department of Human Services shall 
117.9 	provide necessary staff support for the council.

117.10 	Sec. 19. Minnesota Statutes 2016, section 174.30, subdivision 4, is amended to read:
117.11 		Subd. 4.Vehicle and equipment inspection; rules; decal; complaint contact 
117.12 	information; restrictions on name of service. (a) The commissioner shall inspect or 
117.13 	provide for the inspection of vehicles at least annually. In addition to scheduled annual 
117.14 	inspections and reinspections scheduled for the purpose of verifying that deficiencies have 
117.15 	been corrected, unannounced inspections of any vehicle may be conducted.
117.16 	(b) On determining that a vehicle or vehicle equipment is in a condition that is likely to 
117.17 	cause an accident or breakdown, the commissioner shall require the vehicle to be taken out 
117.18 	of service immediately. The commissioner shall require that vehicles and equipment not 
117.19 	meeting standards be repaired and brought into conformance with the standards and shall 
117.20 	require written evidence of compliance from the operator before allowing the operator to 
117.21 	return the vehicle to service. The commissioner may prohibit a vehicle from being placed 
117.22 	in or returned to service under a certificate of compliance until the vehicle fully complies 
117.23 	with all of the requirements in Minnesota Rules, chapter 8840.
117.24 	(c) The commissioner shall provide in the rules procedures for inspecting vehicles, 
117.25 	removing unsafe vehicles from service, determining and requiring compliance, and reviewing 
117.26 	driver qualifications.
117.27 	(d) The commissioner shall design a distinctive decal to be issued to special transportation 
117.28 	service providers with a current certificate of compliance under this section. A decal is valid 
117.29 	for one year from the last day of the month in which it is issued. A person who is subject 
117.30 	to the operating standards adopted under this section may not provide special transportation 
117.31 	service in a vehicle that does not conspicuously display a decal issued by the commissioner.
118.1 	(e) All special transportation service providers shall pay an annual fee of $45 to obtain 
118.2 	a decal. Providers of ambulance service, as defined in section 144E.001, subdivision 3, are 
118.3 	exempt from the annual fee. Fees collected under this paragraph must be deposited in the 
118.4 	trunk highway fund, and are appropriated to the commissioner to pay for costs related to 
118.5 	administering the special transportation service program.
118.6 	(f) Special transportation service providers shall prominently display in each vehicle all
118.7 	contact information for the commissioner of transportation for the submission of complaints 
118.8 	regarding the transportation services provided to that an individual. All vehicles providing 
118.9 	service under section 473.386 shall display contact information for the Metropolitan Council. 
118.10 	All other special transportation service vehicles shall display contact information for the 
118.11 	commissioner of transportation.
118.12 	(g) Nonemergency medical transportation providers must comply with Minnesota Rules, 
118.13 	part 8840.5450, except that a provider may use the phrase "nonemergency medical 
118.14 	transportation" in its name or in advertisements or information describing the service.

118.15 	Sec. 20. Minnesota Statutes 2016, section 174.37, subdivision 2, is amended to read:
118.16 		Subd. 2.Members. The advisory committee must consist of the following members:
118.17 	(a) The commissioner of transportation shall appoint up to 18 public members, as follows: 
118.18 	one member from each of the department's seven greater Minnesota districts; four members 
118.19 	from the department's metropolitan district; and no more than seven members at large. Each 
118.20 	of the members at large must represent nonmotorized interests or organizations.
118.21 	(b) The commissioners of each of the following state agencies shall appoint an employee 
118.22 	of the agency to serve as a member: administration, education, health, natural resources, 
118.23 	public safety, transportation, and pollution control. The chair of the Metropolitan Council 
118.24 	shall appoint an employee of the council to serve as a member. The director of Explore 
118.25 	Minnesota Tourism shall appoint an employee of the agency to serve as a member. The 
118.26 	division administrator of the Federal Highway Administration may appoint an employee 
118.27 	of the agency to serve as a member.
118.28 	(c) Members of the committee shall serve four-year terms.

118.29 	Sec. 21. Minnesota Statutes 2016, section 174.90, is amended to read:
118.30 	174.90 COMMUTER RAIL OPERATION.
118.31 	The commissioner may contract for operation of commuter rail facilities with the 
118.32 	Metropolitan Council or other public or private entities and shall commence revenue service 
119.1 	after an appropriate period of start-up to ensure satisfactory performance. The commissioner 
119.2 	shall coordinate with transit providers to ensure integration of the commuter rail system 
119.3 	with bus and light rail transit service to avoid duplication of service and to ensure the greatest 
119.4 	access to commuter rail lines in suburban and urban areas.

119.5 	Sec. 22. Minnesota Statutes 2016, section 174.93, subdivision 1, is amended to read:
119.6 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
119.7 	the meanings given:
119.8 	(1) "commissioner" means the commissioner of transportation;
119.9 	(2) "guideway" means a form of transportation service provided to the public on a regular 
119.10 	and ongoing basis, that operates on exclusive or controlled rights-of-way or rails in whole 
119.11 	or in part, and includes each line for intercity passenger rail, commuter rail, light rail transit, 
119.12 	streetcars, and bus rapid transit; and
119.13 	(3) "local unit of government" means a county, statutory or home rule charter city, town, 
119.14 	or other political subdivision including, but not limited to, a regional railroad authority or 
119.15 	joint powers board.
119.16 	(b) For purposes of this section, "sources of funds" includes, but is not limited to, money 
119.17 	from federal aid, state appropriations, the Metropolitan Council, special taxing districts, 
119.18 	local units of government, fare box recovery, and nonpublic sources.
119.19 	(c) For purposes of this section, "budget activity" includes, but is not limited to, 
119.20 	environmental analysis, land acquisition, easements, design, preliminary and final 
119.21 	engineering, acquisition of vehicles and rolling stock, track improvement and rehabilitation, 
119.22 	and construction.

119.23 	Sec. 23. Minnesota Statutes 2016, section 174.93, subdivision 2, is amended to read:
119.24 		Subd. 2.Legislative report. (a) By January 15, 2012, and by November 15 in every 
119.25 	odd-numbered year thereafter, the commissioner shall prepare, in collaboration with the 
119.26 	Metropolitan Council, and submit a report electronically to the chairs and ranking minority 
119.27 	members of the legislative committees with jurisdiction over transportation policy and 
119.28 	finance concerning the status of guideway projects (1) currently in study, planning, 
119.29 	development, or construction; (2) identified in the transportation policy plan under section 
119.30 	473.146; or (3) identified in the comprehensive statewide freight and passenger rail plan 
119.31 	under section 174.03, subdivision 1b.
119.32 	(b) At a minimum, the report must include, for each guideway project:
120.1 	(1) a brief description of the project, including projected ridership;
120.2 	(2) a summary of the overall status and current phase of the project;
120.3 	(3) a timeline that includes (i) project phases or milestones; (ii) expected and known 
120.4 	dates of commencement of each phase or milestone; and (iii) expected and known dates of 
120.5 	completion of each phase or milestone;
120.6 	(4) a brief progress update on specific project phases or milestones completed since the 
120.7 	last previous submission of a report under this subdivision; and
120.8 	(5) a summary financial plan that identifies, as reflected by the data and level of detail 
120.9 	available in the latest phase of project development and to the extent available:
120.10 	(i) capital expenditures, including expenditures to date and total projected expenditures, 
120.11 	with a breakdown by committed and proposed sources of funds for the project;
120.12 	(ii) estimated annual operations and maintenance expenditures reflecting the level of 
120.13 	detail available in the current phase of the project development, with a breakdown by 
120.14 	committed and proposed sources of funds for the project; and
120.15 	(iii) if feasible, project expenditures by budget activity.
120.16 	(c) The report must also include a systemwide capacity analysis for investment in 
120.17 	guideway expansion and maintenance that:
120.18 	(1) provides a funding projection, annually over the ensuing ten years, and with a 
120.19 	breakdown by committed and proposed sources of funds, of:
120.20 	(i) total capital expenditures for guideways;
120.21 	(ii) total operations and maintenance expenditures for guideways;
120.22 	(iii) total funding available for guideways, including from projected or estimated farebox 
120.23 	recovery; and
120.24 	(iv) total funding available for transit service in the metropolitan area; and
120.25 	(2) evaluates the availability of funds and distribution of sources of funds for guideway 
120.26 	investments.
120.27 	(d) The projection under paragraph (c), clause (1), must be for all guideway lines for 
120.28 	which state funds are reasonably expected to be expended in planning, development, 
120.29 	construction, or revenue operation during the ensuing ten years.
120.30 	(e) Local units of government shall provide assistance and information in a timely manner 
120.31 	as requested by the commissioner or council for completion of the report.

121.1 	Sec. 24. Minnesota Statutes 2016, section 221.012, subdivision 38, is amended to read:
121.2 		Subd. 38.Small vehicle passenger service. (a) "Small vehicle passenger service" means 
121.3 	a service provided by a person engaged in the for-hire transportation of passengers in a 
121.4 	vehicle designed to transport seven or fewer persons, including the driver.
121.5 	(b) In the metropolitan area as defined in section 473.121, subdivision 2, "small vehicle 
121.6 	passenger service" also includes for-hire transportation of persons who are certified by the 
121.7 	Metropolitan Councilcommissioner to use special transportation service provided under 
121.8 	section 473.386, in a vehicle designed to transport not more than 15 persons including the 
121.9 	driver, that is equipped with a wheelchair lift and at least three wheelchair securement 
121.10 	positions.
121.11 	(c) Small vehicle passenger service does not include a motor carrier of railroad employees.

121.12 	Sec. 25. Minnesota Statutes 2016, section 221.022, is amended to read:
121.13 	221.022 EXCEPTION.
121.14 	The powers granted to the commissioner under sections 221.012 to 221.293 do not 
121.15 	include the power to regulate any service or vehicles operated by the Metropolitan Council 
121.16 	or to register passenger transportation service provided under contract to the department or 
121.17 	the Metropolitan Council. A provider of passenger transportation service under contract to 
121.18 	the department or the Metropolitan Council may not also provide service as a motor carrier 
121.19 	of passengers without first having registered under section 221.0252.

121.20 	Sec. 26. Minnesota Statutes 2016, section 221.031, subdivision 3a, is amended to read:
121.21 		Subd. 3a.Contractor or recipient of transportation assistance. (a) Notwithstanding 
121.22 	subdivision 3, providers of passenger transportation service under contract to and with 
121.23 	operating assistance from the department or the Metropolitan Council must comply with 
121.24 	rules for driver qualifications; driving of motor vehicles; parts and accessories necessary 
121.25 	for safe operation; hours of service of drivers; inspection, repair, and maintenance; and the 
121.26 	rules adopted in section 221.0314, subdivision 8, for accident reporting.
121.27 	(b) This subdivision does not apply to (1) a local transit commission, (2) a transit authority 
121.28 	created by the legislature, (3) special transportation service certified by the commissioner 
121.29 	under section 174.30, or (4) special transportation service defined in section 174.29, 
121.30 	subdivision 1, when provided by a volunteer driver operating a private passenger vehicle 
121.31 	defined in section 169.011, subdivision 52.

122.1 	Sec. 27. Minnesota Statutes 2016, section 275.066, is amended to read:
122.2 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
122.3 	For the purposes of property taxation and property tax state aids, the term "special taxing 
122.4 	districts" includes the following entities:
122.5 	(1) watershed districts under chapter 103D;
122.6 	(2) sanitary districts under sections 442A.01 to 442A.29;
122.7 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
122.8 	(4) regional public library districts under section 134.201;
122.9 	(5) park districts under chapter 398;
122.10 	(6) regional railroad authorities under chapter 398A;
122.11 	(7) hospital districts under sections 447.31 to 447.38;
122.12 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
122.13 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
122.14 	(10) regional development commissions under sections 462.381 to 462.398;
122.15 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
122.16 	(12) port authorities under sections 469.048 to 469.068;
122.17 	(13) economic development authorities under sections 469.090 to 469.1081;
122.18 	(14) Metropolitan CouncilArea Transit Board under sections 473.123 to 473.549 section 
122.19 	473.446;
122.20 	(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
122.21 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
122.22 	(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter 
122.23 	437, section 1;
122.24 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
122.25 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections 
122.26 	1 to 6;
122.27 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5, 
122.28 	section 39;
123.1 	(21) Middle Mississippi River Watershed Management Organization under sections 
123.2 	103B.211 and 103B.241;
123.3 	(22) emergency medical services special taxing districts under section 144F.01;
123.4 	(23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251;
123.5 	(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
123.6 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
123.7 	(25) an airport authority created under section 360.0426; and
123.8 	(26) any other political subdivision of the state of Minnesota, excluding counties, school 
123.9 	districts, cities, and towns, that has the power to adopt and certify a property tax levy to the 
123.10 	county auditor, as determined by the commissioner of revenue.

123.11 	Sec. 28. Minnesota Statutes 2016, section 297A.992, subdivision 4, is amended to read:
123.12 		Subd. 4.Joint powers board. (a) The joint powers board must consist of one or more 
123.13 	commissioners of each county that is in the metropolitan transportation area, appointed by 
123.14 	its county board, and the chair of the Metropolitan Council, who must have voting rights, 
123.15 	subject to subdivision 3, clause (4). The joint powers board has the powers and duties 
123.16 	provided in this section and section 471.59.
123.17 	(b) The joint powers board may utilize no more than three-fourths of one percent of the 
123.18 	proceeds of the taxes imposed under this section for ordinary administrative expenses 
123.19 	incurred in carrying out the provisions of this section. Any additional administrative expenses 
123.20 	must be paid by the participating counties.
123.21 	(c) The joint powers board may establish a technical advisory group that is separate from 
123.22 	the GEARS Committee. The group must consist of representatives of cities, counties, or 
123.23 	public agencies, including the Metropolitan Council. The technical advisory group must be 
123.24 	used solely for technical consultation purposes.

123.25 	Sec. 29. Minnesota Statutes 2016, section 297A.992, subdivision 5, is amended to read:
123.26 		Subd. 5.Grant application and awards; Grant Evaluation and Ranking System 
123.27 	(GEARS) Committee. (a) The joint powers board shall establish a grant application process 
123.28 	and identify the amount of available funding for grant awards. Grant applications must be 
123.29 	submitted in a form prescribed by the joint powers board. An applicant must provide, in 
123.30 	addition to all other information required by the joint powers board, the estimated cost of 
123.31 	the project, the amount of the grant sought, possible sources of funding in addition to the 
124.1 	grant sought, and identification of any federal funds that will be utilized if the grant is 
124.2 	awarded. A grant application seeking transit capital funding must identify the source of 
124.3 	money necessary to operate the transit improvement.
124.4 	(b) The joint powers board shall establish a timeline and procedures for the award of 
124.5 	grants, and may award grants only to the state and political subdivisions. The board shall 
124.6 	define objective criteria for the award of grants, which must include, but not be limited to, 
124.7 	consistency with the most recent version of the transportation policy plan adopted by the 
124.8 	Metropolitan Council under section 473.146. The joint powers board shall maximize the 
124.9 	availability and use of federal funds in projects funded under this section.
124.10 	(c) The joint powers board shall establish a GEARS Committee, which must consist of:
124.11 	(1) one county commissioner from each county that is in the metropolitan transportation 
124.12 	area, appointed by its county board;
124.13 	(2) one elected city representative from each county that is in the metropolitan 
124.14 	transportation area; and
124.15 	(3) one additional elected city representative from each county for every additional 
124.16 	400,000 in population, or fraction of 400,000, in the county that is above 400,000 in 
124.17 	population; and.
124.18 	(4) the chair of the Metropolitan Council Transportation Committee.
124.19 	(d) Each city representative must be elected at a meeting of cities in the metropolitan 
124.20 	transportation area, which must be convened for that purpose by the Association of 
124.21 	Metropolitan Municipalities.
124.22 	(e) The committee shall evaluate grant applications following objective criteria established 
124.23 	by the joint powers board, and must provide to the joint powers board a selection list of 
124.24 	transportation projects that includes a priority ranking.
124.25 	(f) A grant award for a transit project located within the metropolitan area, as defined 
124.26 	in section 473.121, subdivision 2, may be funded only after the Metropolitan Council reviews 
124.27 	the project for consistency with the transit portion of the Metropolitan Council policy plan 
124.28 	and one of the following occurs:
124.29 	(1) the Metropolitan Council finds the project to be consistent;
124.30 	(2) the Metropolitan Council initially finds the project to be inconsistent, but after a 
124.31 	good faith effort to resolve the inconsistency through negotiations with the joint powers 
124.32 	board, agrees that the grant award may be funded; or
125.1 	(3) the Metropolitan Council finds the project to be inconsistent, and submits the 
125.2 	consistency issue for final determination to a panel, which determines the project to be 
125.3 	consistent. The panel is composed of a member appointed by the chair of the Metropolitan 
125.4 	Council, a member appointed by the joint powers board, and a member agreed upon by both 
125.5 	the chair and the joint powers board.
125.6 	(g) (f) Grants must be funded by the proceeds of the taxes imposed under this section, 
125.7 	bonds, notes, or other obligations issued by the joint powers board under subdivision 7.
125.8 	(h) Notwithstanding the provisions of this section except subdivision 6a, of the revenue 
125.9 	collected under this section, the joint powers board shall allocate to the Metropolitan Council, 
125.10 	in fiscal years 2012 and 2013, an amount not less than 75 percent of the net cost of operations 
125.11 	for those transitways that were receiving metropolitan sales tax funds through an operating 
125.12 	grant agreement on June 30, 2011.
125.13 	(i) The Metropolitan Council shall expend any funds allocated under paragraph (h) for 
125.14 	the operations of the specified transitways solely within those counties that are in the 
125.15 	metropolitan transportation area.
125.16 	(j) Nothing in paragraph (h) or (i) prevents grant awards to the Metropolitan Council 
125.17 	for capital and operating assistance for transitways and park-and-ride facilities.

125.18 	Sec. 30. Minnesota Statutes 2016, section 398A.04, subdivision 2, is amended to read:
125.19 		Subd. 2.Railroad acquisition and operation. The authority may plan, establish, acquire, 
125.20 	develop, construct, purchase, enlarge, extend, improve, maintain, equip, operate, regulate, 
125.21 	and protect railroads and railroad facilities, including but not limited to terminal buildings, 
125.22 	roadways, crossings, bridges, causeways, tunnels, equipment, and rolling stock. The authority 
125.23 	may not expend state or federal funds to engage in planning for or development of light rail 
125.24 	transit or commuter rail transit, unless this activity is consistent with a plan adopted by the 
125.25 	department of transportation under section 174.84and a plan adopted by the metropolitan 
125.26 	council under section 473.399, and is carried out pursuant to a memorandum of understanding 
125.27 	executed by the authority and the commissioner after appropriate consultation with the 
125.28 	metropolitan council.

125.29 	Sec. 31. Minnesota Statutes 2016, section 398A.04, subdivision 2a, is amended to read:
125.30 		Subd. 2a.Bus rapid transit development. A regional rail authority may exercise the 
125.31 	powers conferred under this section to: plan, establish, acquire, develop, purchase, enlarge, 
125.32 	extend, improve, maintain, equip, regulate, and protect; and pay costs of construction and 
126.1 	operation of a bus rapid transit system located within its county on transitways included in 
126.2 	and approved by the Metropolitan Council's 2030 Transportation Policy Plan. This 
126.3 	subdivision applies only to the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
126.4 	Scott, and Washington.

126.5 	Sec. 32. Minnesota Statutes 2016, section 398A.04, subdivision 9, is amended to read:
126.6 		Subd. 9.Agreements. The authority may enter into joint powers agreements under 
126.7 	section 471.59 or other agreements with the municipality or municipalities named in the 
126.8 	organization agreement; with other municipalities situated in the counties named in the 
126.9 	resolution, respecting the matters referred to in section 398A.06; with another authority; or 
126.10 	with a state agency; or with the Metropolitan Council about any matter subject to this chapter.

126.11 	Sec. 33. Minnesota Statutes 2016, section 473.146, subdivision 4, is amended to read:
126.12 		Subd. 4.Transportation planning. (a) The Metropolitan Council is the designated
126.13 	commissioner and affected local governments shall cooperate to designate a planning agency 
126.14 	for any long-range comprehensive transportation planning required by section 134 of the 
126.15 	Federal Highway Act of 1962, Section 4 of Urban Mass Transportation Act of 1964 and 
126.16 	Section 112 of Federal Aid Highway Act of 1973 and other federal transportation laws. The 
126.17 	council designated planning agency shall assure administration and coordination of 
126.18 	transportation planning with appropriate state, regional and other agencies, counties, and 
126.19 	municipalities.
126.20 	(b) The council designated planning agency shall establish an advisory body consisting 
126.21 	of citizens and representatives of municipalities, counties, and state agencies in fulfillment 
126.22 	of the planning responsibilities of the council designated planning agency. The membership 
126.23 	of the advisory body must consist of:
126.24 	(1) the commissioner of transportation or the commissioner's designee;
126.25 	(2) the commissioner of the Pollution Control Agency or the commissioner's designee;
126.26 	(3) one member of the Metropolitan Airports Commission appointed by the commission;
126.27 	(4) one person appointed by the council commissioner to represent nonmotorized 
126.28 	transportation;
126.29 	(5) one person appointed by the commissioner of transportation to represent the freight 
126.30 	transportation industry;
126.31 	(6) two persons appointed by the council commissioner to represent public transit;
127.1 	(7) ten elected officials of cities within the metropolitan area, including one representative 
127.2 	from each first-class city, appointed by the Association of Metropolitan Municipalities;
127.3 	(8) one member of the county board of each county in the seven-county metropolitan 
127.4 	area, appointed by the respective county boards;
127.5 	(9) eight citizens appointed by the council commissioner, one from each council precinct
127.6 	Metropolitan Airports Commission district; and
127.7 	(10) one elected official from a city participating in the replacement service program 
127.8 	under section 473.388, appointed by the Suburban Transit Association; and.
127.9 	(11) one member of the council, appointed by the council.
127.10 	(c) The council designated planning agency shall appoint a chair from among the members 
127.11 	of the advisory body.

127.12 	Sec. 34. Minnesota Statutes 2016, section 473.1466, is amended to read:
127.13 	473.1466 TRANSPORTATION SYSTEM PERFORMANCE EVALUATION.
127.14 	(a) Prior to each major revision of the transportation policy plan, the council 
127.15 	commissioner of administration must carry out a performance evaluation of the metropolitan 
127.16 	area's transportation system as a whole. The performance evaluation must:
127.17 	(1) evaluate the area's ability to meet the need for effective and efficient transportation 
127.18 	of goods and people;
127.19 	(2) evaluate trends and their impacts on the area's transportation system;
127.20 	(3) assess the region's success in meeting the currently adopted regional transportation 
127.21 	benchmarks; and
127.22 	(4) include an evaluation of the regional transit system, including a comparison with 
127.23 	peer metropolitan regions with regard to key operating and investment measurements.
127.24 	(b) The council mustcommissioner shall update the evaluation of the regional transit 
127.25 	system every two years.
127.26 	(c) The councilcommissioner shall use the results of the performance evaluation to 
127.27 	make recommendations for improving the system in each revision of the transportation 
127.28 	policy plan.
127.29 	(d) The council mustcommissioner shall conduct a peer review of the performance 
127.30 	evaluation using at least two nationally recognized transportation and transit consultants.
128.1 	(e) The council mustcommissioner shall submit the performance evaluation to the chairs 
128.2 	and ranking minority members of the house of representatives and senate committees and 
128.3 	divisions with jurisdiction over transportation finance and policy.

128.4 	Sec. 35. Minnesota Statutes 2016, section 473.166, is amended to read:
128.5 	473.166 CONTROLLED ACCESS; APPROVAL.
128.6 	Before acquiring land for or constructing a controlled access highway in the area, the 
128.7 	state Transportation Department ora local government unit proposing the acquisition or 
128.8 	construction shall submit to the councilcommissioner of transportation a statement describing 
128.9 	the proposed project. The statement must be in the form and detail required by the council
128.10 	commissioner. The councilcommissioner of transportation, in cooperation with the 
128.11 	commissioner of administration, shall review the statement to ascertain its consistency with 
128.12 	itsthe policy plan and the development guide. No project may be undertaken unless the 
128.13 	council determinescommissioners of transportation and administration determine that it is 
128.14 	consistent with the policy plan. This approval is in addition to the requirements of any other 
128.15 	statute, ordinance or rule.

128.16 	Sec. 36. Minnesota Statutes 2016, section 473.167, subdivision 2, is amended to read:
128.17 		Subd. 2.Loans for acquisition. (a) The councilcommissioner of transportation may 
128.18 	make loans to counties, towns, and statutory and home rule charter cities within the 
128.19 	metropolitan area for the purchase of property within the right-of-way of a state trunk 
128.20 	highway shown on an official map adopted pursuant to section 394.361 or 462.359 or for 
128.21 	the purchase of property within the proposed right-of-way of a principal or intermediate 
128.22 	arterial highway designated by the councilcommissioner of transportation as a part of the 
128.23 	metropolitan highway system plan and approved by the councilcommissioner of 
128.24 	administration pursuant to section 473.166. The loans shall be made by the council 
128.25 	commissioner of transportation, from the fund established pursuant to this subdivision, for 
128.26 	purchases approved by the council commissioner of transportation. The loans shall bear no 
128.27 	interest.
128.28 	(b) The councilcommissioner of transportation shall make loans only:
128.29 	(1) to accelerate the acquisition of primarily undeveloped property when there is a 
128.30 	reasonable probability that the property will increase in value before highway construction, 
128.31 	and to update an expired environmental impact statement on a project for which the 
128.32 	right-of-way is being purchased;
129.1 	(2) to avert the imminent conversion or the granting of approvals which would allow 
129.2 	the conversion of property to uses which would jeopardize its availability for highway 
129.3 	construction;
129.4 	(3) to advance planning and environmental activities on highest priority major 
129.5 	metropolitan river crossing projects, under the transportation development guide 
129.6 	chapter/policy plan; or
129.7 	(4) to take advantage of open market opportunities when developed properties become 
129.8 	available for sale, provided all parties involved are agreeable to the sale and funds are 
129.9 	available.
129.10 	(c) The councilcommissioner of transportation shall not make loans for the purchase 
129.11 	of property at a price which exceeds the fair market value of the property or which includes 
129.12 	the costs of relocating or moving persons or property. The eminent domain process may be 
129.13 	used to settle differences of opinion as to fair market value, provided all parties agree to the 
129.14 	process.
129.15 	(d) A private property owner may elect to receive the purchase price either in a lump 
129.16 	sum or in not more than four annual installments without interest on the deferred installments. 
129.17 	If the purchase agreement provides for installment payments, the council commissioner of 
129.18 	transportation shall make the loan in installments corresponding to those in the purchase 
129.19 	agreement. The recipient of an acquisition loan shall convey the property for the construction 
129.20 	of the highway at the same price which the recipient paid for the property. The price may 
129.21 	include the costs of preparing environmental documents that were required for the acquisition 
129.22 	and that were paid for with money that the recipient received from the loan fund. Upon 
129.23 	notification by the councilcommissioner of transportation that the plan to construct the 
129.24 	highway has been abandoned or the anticipated location of the highway changed, the recipient 
129.25 	shall sell the property at market value in accordance with the procedures required for the 
129.26 	disposition of the property. All rents and other money received because of the recipient's 
129.27 	ownership of the property and all proceeds from the conveyance or sale of the property shall 
129.28 	be paid to the council commissioner of transportation. If a recipient is not permitted to 
129.29 	include in the conveyance price the cost of preparing environmental documents that were 
129.30 	required for the acquisition, then the recipient is not required to repay the council
129.31 	commissioner an amount equal to 40 percent of the money received from the loan fund and 
129.32 	spent in preparing the environmental documents.
129.33 	(e) The proceeds of the tax authorized by subdivision 3, all money paid to the council
129.34 	commissioner of transportation by recipients of loans, and all interest on the proceeds and 
130.1 	payments shall be maintained as a separate fund. For administration of the loan program, 
130.2 	the councilcommissioner of transportation may expend from the fund each year an amount 
130.3 	no greater than three percent of the amount of the proceeds for that year.

130.4 	Sec. 37. Minnesota Statutes 2016, section 473.167, subdivision 2a, is amended to read:
130.5 		Subd. 2a.Loans for acquisition and relocation. (a) The councilcommissioner of 
130.6 	transportation may make loans to acquiring authorities within the metropolitan area to 
130.7 	purchase homestead property located in a proposed state trunk highway right-of-way or 
130.8 	project, and to provide relocation assistance. Acquiring authorities are authorized to accept 
130.9 	the loans and to acquire the property. Except as provided in this subdivision, the loans shall 
130.10 	be made as provided in subdivision 2. Loans shall be in the amount of the fair market value 
130.11 	of the homestead property plus relocation costs and less salvage value. Before construction 
130.12 	of the highway begins, the acquiring authority shall convey the property to the commissioner 
130.13 	of transportation at the same price it paid, plus relocation costs and less its salvage value. 
130.14 	Acquisition and assistance under this subdivision must conform to sections 117.50 to 117.56.
130.15 	(b) The councilcommissioner of transportation may make loans only when:
130.16 	(1) the owner of affected homestead property requests acquisition and relocation 
130.17 	assistance from an acquiring authority;
130.18 	(2) federal or other state financial participation is not available;
130.19 	(3) the owner is unable to sell the homestead property at its appraised market value 
130.20 	because the property is located in a proposed state trunk highway right-of-way or project 
130.21 	as indicated on an official map or plat adopted under section 160.085, 394.361, or 462.359; 
130.22 	and
130.23 	(4) the councilcommissioner of transportation agrees to and approves the fair market 
130.24 	value of the homestead property, which approval shall not be unreasonably withheld.
130.25 	(c) For purposes of this subdivision, the following terms have the meanings given them.
130.26 	(1) "Acquiring authority" means counties, towns, and statutory and home rule charter 
130.27 	cities in the metropolitan area.
130.28 	(2) "Homestead property" means: (i) a single-family dwelling occupied by the owner, 
130.29 	and the surrounding land, not exceeding a total of ten acres; or (ii) a manufactured home, 
130.30 	as defined in section 327B.01, subdivision 13.
130.31 	(3) "Salvage value" means the probable sale price of the dwelling and other property 
130.32 	that is severable from the land if offered for sale on the condition that it be removed from 
131.1 	the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge 
131.2 	of the possible uses of the property, including separate use of serviceable components and 
131.3 	scrap when there is no other reasonable prospect of sale.

131.4 	Sec. 38. Minnesota Statutes 2016, section 473.168, subdivision 2, is amended to read:
131.5 		Subd. 2.Exclusive lanes; multipassenger transit. The Metropolitan Council 
131.6 	commissioner of transportation may require that any freeway constructed in the metropolitan 
131.7 	area on which actual construction has not been commenced by April 12, 1974 include 
131.8 	provisions for exclusive lanes for buses and, as the councilcommissioner of transportation 
131.9 	may determine, other forms of multipassenger transit. The council commissioner of 
131.10 	transportation, in making its determination, must demonstrate that the exclusive lanes are 
131.11 	necessary to implement the transportation policy plan of the development guide.

131.12 	Sec. 39. Minnesota Statutes 2016, section 473.223, is amended to read:
131.13 	473.223 FEDERAL AID.
131.14 	For the purposes of this section the term "governmental subdivision" includes 
131.15 	municipalities, counties and other political subdivisions generally. If federal aid for 
131.16 	transportation programs and projects is otherwise unavailable to an existing agency or 
131.17 	governmental subdivision, the Metropolitan Councilcommissioner of transportation may 
131.18 	cooperate with the government of the United States and any agency or department thereof 
131.19 	and the affected agency or other governmental subdivision in establishing metropolitan area 
131.20 	eligibility to receive federal aid, and may comply with the provisions of the laws of the 
131.21 	United States and any rules and regulations made thereunder for the expenditure of federal 
131.22 	moneys upon such projects as are proposed for federal assistance. The Metropolitan Council
131.23 	commissioner of transportation may accept federal aid and other aid, either public or private, 
131.24 	for and in behalf of the metropolitan area or any governmental subdivision of the state, for 
131.25 	transportation programs and projects within the metropolitan area upon such terms and 
131.26 	conditions as are or may be prescribed by the laws of the United States and any rules or 
131.27 	regulations made thereunder, and is authorized to act as agent of any governmental 
131.28 	subdivision of the state with jurisdiction in the metropolitan area upon request of such 
131.29 	subdivision in accepting the aid in its behalf for such programs or projects financed either 
131.30 	in whole or in part by federal aid. The governing body of any such subdivision is authorized 
131.31 	to designate the Metropolitan Councilcommissioner of transportation as its agent for such 
131.32 	purposes and to enter into an agreement with the councilcommissioner of transportation 
131.33 	prescribing the terms and conditions of the agency relationship in accordance with state and 
132.1 	federal laws, rules and regulations. The Metropolitan Councilcommissioner of transportation 
132.2 	is authorized to designate an appropriate state agency as its agent for such purposes and to 
132.3 	enter into an agreement with such agency prescribing the terms and conditions of the agency 
132.4 	relationship in accordance with state and federal laws, rules and regulations.
132.5 	Nothing contained herein shall limit any separate authority of agencies or governmental 
132.6 	subdivisions of the state to contract for and receive federal aid.

132.7 	Sec. 40. [473.37] DEFINITIONS.
132.8 		Subdivision 1.Commissioner. "Commissioner" means the commissioner of transportation 
132.9 	for the purposes of sections 473.371 to 473.449.
132.10 		Subd. 2.Department. "Department" means the Department of Transportation for the 
132.11 	purposes of sections 473.371 to 473.449.

132.12 	Sec. 41. Minnesota Statutes 2016, section 473.375, is amended to read:
132.13 	473.375 POWERS AND DUTIES OF COUNCIL COMMISSIONER; ADVISORY 
132.14 	COMMITTEE.
132.15 		Subd. 9a.Transportation Accessibility Advisory Committee. The council commissioner 
132.16 	shall establish a Transportation Accessibility Advisory Committee consisting of 15 members 
132.17 	and a chair to advise the councilcommissioner on the development and management of 
132.18 	policies regarding accessibility of all aspects of fixed regular route and special transportation 
132.19 	services for persons with disabilities. The Transportation Accessibility Advisory Committee 
132.20 	shall also advise the council commissioner on long-range plans to meet the accessible 
132.21 	transportation needs of the disability community. The Transportation Accessibility Advisory 
132.22 	Committee must include elderly persons, persons with disabilities, other users of special 
132.23 	transportation services, and representatives of appropriate agencies for elderly persons and 
132.24 	persons with disabilities. At least half the Transportation Accessibility Advisory Committee 
132.25 	members must be persons who are both ADA-certified and users of public transit in the 
132.26 	metropolitan area. Two of the appointments to the Transportation Accessibility Advisory 
132.27 	Committee must be made by the Council on Disability in consultation with the chair of the 
132.28 	Metropolitan Council.
132.29 		Subd. 11.Ride sharing. The councilcommissioner shall administer a ride-sharing 
132.30 	program in the metropolitan area, except for theincluding a statewide vanpool leasing 
132.31 	program conducted by the commissioner of transportation and shall cooperate with the 
132.32 	commissioner in the conduct of ride-sharing activities in areas where the commissioner's 
133.1 	programs and the council's program overlap. The councilcommissioner may contract for 
133.2 	services in operating the program.
133.3 		Subd. 12.Assistance. The councilcommissioner shall offer, use, and apply itsthe 
133.4 	department's services to assist and advise transit providers in the metropolitan transit area 
133.5 	in the planning, promotion, development, operation, and evaluation of programs and projects 
133.6 	which are undertaken or proposed to be undertaken by contract with the council, and shall 
133.7 	seek out and select recipients of this assistance and advice.
133.8 		Subd. 13.Financial assistance. The councilcommissioner may provide financial 
133.9 	assistance to public transit providers as provided in sections 473.371 to 473.449. The council 
133.10 	may not use the proceeds of bonds issued under section 473.39 to provide capital assistance 
133.11 	to private, for-profit operators of public transit, unless the operators provide service under 
133.12 	a contract with the council, the former regional transit board, or recipients of financial 
133.13 	assistance under sections 473.371 to 473.449.
133.14 	No political subdivision within the metropolitan area may apply for federal transit 
133.15 	assistance unless its application has been submitted to and approved by the council 
133.16 	commissioner.
133.17 		Subd. 14.Coordination. The councilcommissioner shall coordinate transit operations 
133.18 	within the metropolitan area and shall establish a transit information program to provide 
133.19 	transit users with accurate information on transit schedules and service.
133.20 		Subd. 15.Performance standards. The councilcommissioner may establish performance 
133.21 	standards for recipients of financial assistance.

133.22 	Sec. 42. Minnesota Statutes 2016, section 473.384, is amended to read:
133.23 	473.384 CONTRACTS.
133.24 		Subdivision 1.Contracts required. The councilcommissioner shall make contracts 
133.25 	with eligible recipients for financial assistance to transit service within the metropolitan 
133.26 	area. The councilcommissioner may not give financial assistance to another transit provider 
133.27 	without first having executed a contract. The provisions of this section do not apply to 
133.28 	contracts made under sectionssection 473.386and 473.388.
133.29 		Subd. 2.Eligibility. To be eligible to receive financial assistance by contract under this 
133.30 	section a recipient must be:
134.1 	(a) a county, statutory or home rule charter city or town or combination thereof, or public 
134.2 	authority organized and existing pursuant to chapter 398A, providing financial assistance 
134.3 	to or providing or operating public transit; or
134.4 	(b) a private provider of public transit; or
134.5 	(c) a transit provider formerly under contract with one or more local government units 
134.6 	to provide replacement service under the replacement service program established in Laws 
134.7 	1984, chapter 654, article 3, section 123.
134.8 		Subd. 3.Applications. The councilcommissioner shall establish procedures and standards 
134.9 	for review and approval of applications for financial assistance under this section. An 
134.10 	applicant must provide the councilcommissioner with the financial and other information 
134.11 	the councilcommissioner requires to carry out itsthe commissioner's duties. The council
134.12 	commissioner may specify procedures, including public hearing requirements, to be followed 
134.13 	by applicants that are cities, towns, or counties or combinations thereof in conducting transit 
134.14 	studies and formulating service plans under subdivisions 4 and 5.
134.15 		Subd. 4.Transit study. The councilcommissioner shall require that prior to applying 
134.16 	for financial assistance by contract under clause (a) of subdivision 2, the applicant must 
134.17 	prepare and submit a transit study which includes the following elements:
134.18 	(a) a determination of existing and future transit needs within the area to be served, and 
134.19 	an assessment of the adequacy of existing service to meet the needs;
134.20 	(b) an assessment of the level and type of service required to meet unmet needs;
134.21 	(c) an assessment of existing and future resources available for the financing of transit 
134.22 	service; and
134.23 	(d) the type or types of any new government arrangements or agreements needed to 
134.24 	provide adequate service.
134.25 	The transit study for any applicant may be done by the council commissioner.
134.26 		Subd. 5.Service plan. The councilcommissioner shall, before making a contract with 
134.27 	an eligible recipient, require the submission of a service plan which includes the following 
134.28 	elements:
134.29 	(a) a description of the service proposed for financial assistance, including vehicles, 
134.30 	routes, and schedules;
134.31 	(b) an assessment of the extent to which the proposed service meets the needs as 
134.32 	determined by the transit study;
135.1 	(c) a description of the contract administration and review process if the operation of 
135.2 	the proposed service is to be done by a private contractor;
135.3 	(d) a description of the amount required to establish and operate the proposed service 
135.4 	and the proposed sources of the required amount including operating revenue, other local 
135.5 	sources, and assistance from the councilcommissioner and from federal sources;
135.6 	(e) the fare structure of the proposed service; and
135.7 	(f) projections of usage of the system.
135.8 	The councilcommissioner may specify procedures, including public hearing requirements, 
135.9 	to be followed by applicants that are cities, towns, or counties or combinations thereof in 
135.10 	conducting transit studies and formulating service plans.
135.11 		Subd. 6.Financial assistance for certain providers. The councilcommissioner shall 
135.12 	provide financial assistance to recipients who were receiving assistance by contract with 
135.13 	the commissioner of transportation under Minnesota Statutes 1982, section 174.24, 
135.14 	subdivision 3, on July 1, 1984, so that the percentage of total operating cost, as defined by 
135.15 	the council commissioner, paid by the recipient from all local sources of revenue, including 
135.16 	operating revenue, does not exceed the percentage for the recipient's classification as 
135.17 	determined by the commissioner of transportation under the commissioner's final contract 
135.18 	with the recipient. The remainder of the total operating cost must be paid by the council 
135.19 	commissioner less all assistance received by the recipient for that purpose from any federal 
135.20 	source.
135.21 	If a recipient informs the councilcommissioner in writing prior to the distribution of 
135.22 	financial assistance for any year that paying its designated percentage of total operating 
135.23 	cost from local sources will cause undue hardship, the councilcommissioner may adjust 
135.24 	the percentage as it deems equitable. If for any year the funds available to the council 
135.25 	commissioner are insufficient to allow the councilcommissioner to pay its share of total 
135.26 	operating cost for those recipients, the councilcommissioner shall reduce its share in each 
135.27 	classification to the extent necessary.
135.28 		Subd. 7.Transit operations impact assessment. Prior to entering into a contract for 
135.29 	operating assistance with a recipient, the councilcommissioner shall evaluate the effect, if 
135.30 	any, of the contract on the ridership, routes, schedules, fares, and staffing levels of the 
135.31 	existing and proposed service provided by the council commissioner. The council
135.32 	commissioner may enter into the contract only if it determines that the service to be assisted 
135.33 	under the contract will not impose an undue hardship on the ridership or financial condition 
135.34 	of the council'scommissioner's transit operations. The requirements of this subdivision do 
136.1 	not apply to contracts for assistance to recipients who, as part of a negotiated cost-sharing 
136.2 	arrangement with the council commissioner, pay a substantial part of the cost of services 
136.3 	that directly benefit the recipient as an institution or organization.
136.4 		Subd. 8.Paratransit contracts. In executing and administering contracts for paratransit 
136.5 	projects, the councilcommissioner has the powers and duties given to the commissioner of 
136.6 	transportationspecified in section 174.255, subdivisions 1 and 2, relating to disability 
136.7 	accessibility and insurance coverage. The provisions of section 174.255, subdivision 3, 
136.8 	apply to paratransit projects which receive assistance by contract with the council
136.9 	commissioner.

136.10 	Sec. 43. Minnesota Statutes 2016, section 473.385, is amended to read:
136.11 	473.385 TRANSIT SERVICE AREAS.
136.12 		Subdivision 1.Definitions. (a) "Fully developed service area" means the fully developed 
136.13 	area, as defined in the Metropolitan Council's development guide prepared by the 
136.14 	commissioner of administration, plus the cities of Mendota Heights, Maplewood, North St. 
136.15 	Paul, and Little Canada.
136.16 	(b) "Regular route transit" has the meaning given it in section 174.22, subdivision 8, 
136.17 	except that, for purposes of this section, the term does not include services on fixed routes 
136.18 	and schedules that are primarily intended to provide circulator service within a community 
136.19 	or adjacent communities rather than feeder service to the system of metropolitan regular 
136.20 	route transit operated by the council commissioner of transportation.
136.21 		Subd. 2.Service areas. The councilcommissioner may provide financial assistance 
136.22 	(whether directly or through another entity) to private, for-profit operators of public transit 
136.23 	only for the following services:
136.24 	(1) services that are not regular route services;
136.25 	(2) regular route services provided on June 2, 1989, by a private, for-profit operator 
136.26 	under contract with the former regional transit board or under a certificate of convenience 
136.27 	and necessity issued by the commissioner of transportation;
136.28 	(3) regular route services outside of the fully developed service area that are not operated 
136.29 	on June 2, 1989, by the former Metropolitan Transit Commission;
136.30 	(4) regular route services provided under section 473.388;
137.1 	(5)(4) regular route services to recipients who, as part of a negotiated cost-sharing 
137.2 	arrangement with the council commissioner, pay at least 50 percent of the cost of the service 
137.3 	that directly benefits the recipient as an institution or organization; or
137.4 	(6)(5) regular route services that will not be operated for a reasonable subsidy by the 
137.5 	council commissioner.

137.6 	Sec. 44. Minnesota Statutes 2016, section 473.386, is amended to read:
137.7 	473.386 SPECIAL TRANSPORTATION SERVICE.
137.8 		Subdivision 1.Service objectives. The councilcommissioner shall implement a special 
137.9 	transportation service, as defined in section 174.29, in the metropolitan area. The service 
137.10 	has the following objectives:
137.11 	(a) to provide greater access to transportation for the elderly, people with disabilities, 
137.12 	and others with special transportation needs in the metropolitan area;
137.13 	(b) to develop an integrated system of special transportation service providing 
137.14 	transportation tailored to meet special individual needs in the most cost-efficient manner; 
137.15 	and
137.16 	(c) to use existing public, private, and private nonprofit providers of service when feasible 
137.17 	and cost-efficient, to supplement rather than replace existing service, and to increase the 
137.18 	productivity of all special transportation vehicles available in the area.
137.19 		Subd. 2.Service contracts; management. (a) The councilcommissioner may contract 
137.20 	for services necessary for the provision of special transportation. Transportation service 
137.21 	provided under a contract must specify the service to be provided, the standards that must 
137.22 	be met, and the rates for operating and providing special transportation services.
137.23 	(b) The councilcommissioner shall establish management policies for the service and 
137.24 	may contract with a service administrator for day-to-day administration and management 
137.25 	of the service. Any contract must delegate to the service administrator clear authority to 
137.26 	administer and manage the delivery of the service pursuant to council department 
137.27 	management policies and must establish performance and compliance standards for the 
137.28 	service administrator. The councilcommissioner may provide directly day to day 
137.29 	administration and management of the service and may own or lease vehicles used to provide 
137.30 	the service.
137.31 	(c) The councilcommissioner shall ensure that the service administrator establishes a 
137.32 	system for registering and expeditiously responding to complaints by users, informing users 
138.1 	of how to register complaints, and requiring providers to report on incidents that impair the 
138.2 	safety and well-being of users or the quality of the service.
138.3 	(d) The councilcommissioner shall report on its the department's special transportation 
138.4 	services as part of the program evaluation provided for in section 473.13, subdivision 1a.
138.5 	(e) The councilcommissioner shall provide, on an annual basis, an opportunity for users 
138.6 	and other interested persons to provide testimony to the councilcommissioner concerning 
138.7 	services provided under this section.
138.8 		Subd. 2a.Eligibility application and verification; penalty for fraudulent certification.
 138.9 	(a) If the councilcommissioner requires a person to be certified as eligible for special 
138.10 	transportation services, an applicant for certification must submit an application form and 
138.11 	the applicant's eligibility must be verified by a type of professional specified by the council
138.12 	commissioner. The councilcommissioner shall:
138.13 	(1) require the applicant to sign the application form and certify that the application 
138.14 	information is accurate; and
138.15 	(2) require the person verifying the applicant's eligibility to sign the eligibility verification 
138.16 	form and certify that the verifying information is accurate.
138.17 	(b) The penalty provided for in section 174.295, subdivision 4, applies to the certifications 
138.18 	by the applicant and the person verifying the applicant's eligibility. The councilcommissioner 
138.19 	must include a notice of the penalty for fraudulent certification in the application form and 
138.20 	the eligibility verification form.
138.21 		Subd. 3.Duties of council commissioner. In implementing the special transportation 
138.22 	service, the councilcommissioner shall:
138.23 	(a) encourage participation in the service by public, private, and private nonprofit 
138.24 	providers of special transportation currently receiving capital or operating assistance from 
138.25 	a public agency;
138.26 	(b) when feasible and cost-efficient, contract with public, private, and private nonprofit 
138.27 	providers that have demonstrated their ability to effectively provide service at a reasonable 
138.28 	cost;
138.29 	(c) encourage individuals using special transportation to use the type of service most 
138.30 	appropriate to their particular needs;
138.31 	(d) encourage shared rides to the greatest extent practicable;
139.1 	(e) encourage public agencies that provide transportation to eligible individuals as a 
139.2 	component of human services and educational programs to coordinate with this service and 
139.3 	to allow reimbursement for transportation provided through the service at rates that reflect 
139.4 	the public cost of providing that transportation;
139.5 	(f) establish criteria to be used in determining individual eligibility for special 
139.6 	transportation services;
139.7 	(g) consult with the Transportation Accessibility Advisory Committee in a timely manner 
139.8 	before changes are made in the provision of special transportation services;
139.9 	(h) provide for effective administration and enforcement of councildepartment policies 
139.10 	and standards; and
139.11 	(i) ensure that, taken as a whole including contracts with public, private, and private 
139.12 	nonprofit providers, the geographic coverage area of the special transportation service is 
139.13 	continuous within the boundaries of the transit taxing district, as defined as of March 1, 
139.14 	2006, in section 473.446, subdivision 2 metropolitan area.
139.15 		Subd. 4.Coordination required. The councilcommissioner may not grant any financial 
139.16 	assistance to any recipient that proposes to use any part of the grant to provide special 
139.17 	transportation service in the metropolitan area unless the program is coordinated with the 
139.18 	council'scommissioner's special transportation service in the manner determined by the 
139.19 	council commissioner. The councilcommissioner is not required to provide funding for 
139.20 	transportation services from a residence to a service site and home again when the services 
139.21 	are used by individuals in conjunction with their participation in human service 
139.22 	developmental achievement center programs in which transportation to and from the program 
139.23 	is a required and funded component of those programs.
139.24 		Subd. 5.Equitable allocation and annual reallocation. The councilcommissioner 
139.25 	shall distribute all available funding under this section in a manner designed to achieve an 
139.26 	equitable allocation of special transportation services based on the proportion of the number 
139.27 	of elderly, disabled, or economically disadvantaged individuals with special transportation 
139.28 	needs who actually use the special transportation service.
139.29 		Subd. 6.Operating and service standards. A person operating or assisting the operation 
139.30 	of a vehicle may leave the vehicle to enter premises in order to help a passenger who does 
139.31 	not require emergency ambulance service. Operators and assistants shall provide the help 
139.32 	necessary for door-through-door service, including help in entering and leaving the vehicle 
139.33 	and help through the exterior entrance and over any exterior steps at either departure or 
139.34 	destination buildings, provided that both the steps and the wheelchair are in good repair. If 
140.1 	an operator or assistant refuses help because of the condition of the steps or the wheelchair, 
140.2 	the operator of the service shall send letters to the service administrator designated by the 
140.3 	council commissioner, who shall notify the person denied service describing the corrective 
140.4 	measures necessary to qualify for service.
140.5 		Subd. 8.Vehicle title transfer; conditions. The Metropolitan Council commissioner
140.6 	may transfer to a special transportation service provider or a provider of taxi services the 
140.7 	title to a vehicle formerly used to provide special transportation service under this section. 
140.8 	If the councilcommissioner transfers title to a provider of taxi services, it may do so only 
140.9 	to a provider of taxi services that is licensed by a city whose taxi licensing ordinance requires 
140.10 	(1) criminal background checks and annual driving record checks for drivers, and (2) 
140.11 	inspection of vehicles at least annually.

140.12 	Sec. 45. Minnesota Statutes 2016, section 473.387, subdivision 2, is amended to read:
140.13 		Subd. 2.Administration. The councilcommissioner shall design and administer the 
140.14 	programs under this section. The councilcommissioner may request proposals for projects 
140.15 	to demonstrate methods of achieving the purposes of programs administered under this 
140.16 	section. The councilcommissioner shall design or ensure the design of programs that will 
140.17 	provide better access for the targeted service groups to places of employment and activity 
140.18 	throughout the metropolitan area, using regular route transit, paratransit, taxis, car or van 
140.19 	pools, or other means of conveyance. The councilcommissioner may organize the services 
140.20 	by providing to individuals, directly or indirectly, reduced fares or passes on public transit 
140.21 	or vouchers to be used to purchase transportation; by contracting with public and private 
140.22 	providers; by arrangements with government agencies, civic and community organizations 
140.23 	or nonprofit groups providing assistance to the targeted service groups; by arrangements 
140.24 	with prospective employers, with employment, education, retail, medical, or other activity 
140.25 	centers, or with local governments; or by any other methods designed to improve service 
140.26 	and reduce costs to the targeted service groups.

140.27 	Sec. 46. Minnesota Statutes 2016, section 473.387, subdivision 3, is amended to read:
140.28 		Subd. 3.Job seekers. The councilcommissioner shall establish a program and policies 
140.29 	to increase the availability and utility of public transit services and reduce transportation 
140.30 	costs for persons who are seeking employment and who lack private means of transportation.

141.1 	Sec. 47. Minnesota Statutes 2016, section 473.387, subdivision 4, is amended to read:
141.2 		Subd. 4.Transit disadvantaged. The councilcommissioner shall establish a program 
141.3 	and policies to reduce transportation costs for persons who are, because of limited incomes, 
141.4 	age, disability, or other reasons, especially dependent on public transit for common mobility.

141.5 	Sec. 48. Minnesota Statutes 2016, section 473.3875, is amended to read:
141.6 	473.3875 TRANSIT FOR LIVABLE COMMUNITIES.
141.7 	The councilcommissioner shall establish a transit for livable communities demonstration 
141.8 	program fund. The councilcommissioner shall adopt guidelines for selecting and evaluating 
141.9 	demonstration projects for funding. The selection guidelines must include provisions 
141.10 	evaluating projects:
141.11 	(1) interrelating development or redevelopment and transit;
141.12 	(2) interrelating affordable housing and employment growth areas;
141.13 	(3) helping intensify land use that leads to more compact development or redevelopment;
141.14 	(4) coordinating school transportation and public transit service; or
141.15 	(5) implementing recommendations of the transit redesign plan; or.
141.16 	(6) otherwise promoting the goals of the Metropolitan Livable Communities Act.

141.17 	Sec. 49. Minnesota Statutes 2016, section 473.39, subdivision 1, as amended by Laws 
141.18 	2017, chapter 40, article 1, section 117, is amended to read:
141.19 		Subdivision 1.General authority. The council Metropolitan Area Transit Board 
141.20 	established in section 473.446, subdivision 1c, may issue general obligation bonds subject 
141.21 	to the volume limitations in this section to provide funds to implement the council's transit 
141.22 	capital improvement program for the metropolitan area and may issue general obligation 
141.23 	bonds not subject to the limitations for the refunding of outstanding bonds or certificates 
141.24 	of indebtedness of the former Metropolitan Council, the former regional transit board or 
141.25 	the former metropolitan transit commission, and judgments against the former regional 
141.26 	transit board or the former metropolitan transit commission or the former Metropolitan 
141.27 	Council. The council Metropolitan Area Transit Board may not issue obligations pursuant 
141.28 	to this subdivision, other than refunding bonds, in excess of the amount specifically 
141.29 	authorized by law. Except as otherwise provided in sections 473.371 to 473.449, the council
141.30 	board shall provide for the issuance, sale, and security of the bonds in the manner provided 
141.31 	in chapter 475, and has the same powers and duties as a municipality issuing bonds under 
142.1 	that law, except that no election is required and the net debt limitations in chapter 475 do 
142.2 	not apply to the bonds. The obligations are not a debt of the state or any municipality or 
142.3 	political subdivision within the meaning of any debt limitation or requirement pertaining 
142.4 	to those entities. Neither the state, nor any municipality or political subdivision except the 
142.5 	council Metropolitan Area Transit Board, nor any member or officer or employee of the 
142.6 	council board, is liable on the obligations. The obligations may be secured by taxes levied 
142.7 	without limitation of rate or amount upon all taxable property in the transit taxing district 
142.8 	and transit area as provided in section 473.446, subdivision 1, paragraph (a). As part of its 
142.9 	levy made under section 473.446, subdivision 1, paragraph (a), the council Metropolitan 
142.10 	Area Transit Board shall levy the amounts necessary to provide full and timely payment of 
142.11 	the obligations and transfer the proceeds to the appropriate council account for payment of 
142.12 	the obligations. The taxes must be levied, certified, and collected in accordance with the 
142.13 	terms and conditions of the indebtedness.

142.14 	Sec. 50. Minnesota Statutes 2016, section 473.39, subdivision 2, is amended to read:
142.15 		Subd. 2.Legal investments. Certificates of indebtedness, bonds, or other obligations 
142.16 	issued by the councilunder this section to which tax levies have been pledged pursuant to 
142.17 	section 473.446, are proper for investment of any funds by a bank, savings bank, savings 
142.18 	association, credit union, trust company, insurance company, or public or municipal 
142.19 	corporation, and may be pledged by any bank, savings bank, savings association, credit 
142.20 	union, or trust company as security for the deposit of public money.

142.21 	Sec. 51. Minnesota Statutes 2016, section 473.39, subdivision 2a, is amended to read:
142.22 		Subd. 2a.Uses of investment income. Interest or other investment earnings on the 
142.23 	proceeds of bonds issued under this section and on a debt service account for bonds issued 
142.24 	under this section must be used only to:
142.25 	(1) pay capital expenditures and related expenses for which the obligations were 
142.26 	authorized by this section;
142.27 	(2) to pay debt service on the obligations or to reduce the council's property tax levy 
142.28 	imposed to pay debt service on obligations issued under this section;
142.29 	(3) pay rebate or yield reduction payments for the bonds to the United States;
142.30 	(4) redeem or purchase the bonds; or
143.1 	(5) make other payments with respect to the bonds that are necessary or desirable to 
143.2 	comply with federal tax rules applicable to the bonds or to comply with covenants made 
143.3 	with respect to the bonds.

143.4 	Sec. 52. Minnesota Statutes 2016, section 473.39, subdivision 5, is amended to read:
143.5 		Subd. 5.Anticipation of grants. In addition to other authority granted in this section, 
143.6 	the councilMetropolitan Area Transit Board may exercise the authority granted to an issuing 
143.7 	political subdivision by section 475.522.

143.8 	Sec. 53. Minnesota Statutes 2016, section 473.391, is amended to read:
143.9 	473.391 ROUTE PLANNING AND SCHEDULING.
143.10 		Subdivision 1.Contracts. The councilcommissioner may contract with other operators 
143.11 	or local governments for route planning and scheduling services in any configuration of 
143.12 	new or reconfiguration of existing transit services and routes.
143.13 		Subd. 2.Route elimination; service reduction. The councilcommissioner shall, before 
143.14 	making a determination to eliminate or reduce service on existing transit routes, consider:
143.15 	(1) the level of subsidy per passenger on each route;
143.16 	(2) the availability and proximity of alternative transit routes; and
143.17 	(3) the percentage of transit dependent riders, including youth, elderly, low-income, and 
143.18 	disabled riders currently using each route.

143.19 	Sec. 54. Minnesota Statutes 2016, section 473.3925, is amended to read:
143.20 	473.3925 BUS PURCHASES.
143.21 	The Metropolitan Council commissioner, in preparing bid specifications for bus 
143.22 	purchases, shall ensure that the specifications conform, to the greatest extent practicable, 
143.23 	with products that are manufactured in this state.

143.24 	Sec. 55. Minnesota Statutes 2016, section 473.399, is amended to read:
143.25 	473.399 TRANSIT WAYS; LIGHT RAIL TRANSIT AND COMMUTER RAIL 
143.26 	IN THE METROPOLITAN AREA.
143.27 		Subdivision 1.General requirements. (a) The councilcommissioner of administration 
143.28 	must identify in its transportation policy plan those heavily traveled corridors where 
143.29 	development of a transitway may be feasible and cost-effective. Modes of providing service 
144.1 	in a transitway may include bus rapid transit, light rail transit, commuter rail, or other 
144.2 	available systems or technologies that improve transit service.
144.3 	(b) After the completion of environmental studies and receipt of input from the governing 
144.4 	body of each statutory and home rule charter city, county, and town in which a transitway 
144.5 	is proposed to be constructed, the councilcommissioner must designate the locally preferred 
144.6 	alternative transit mode with respect to the corridor.
144.7 	(c) The councilcommissioner shall ensure that any light rail transit facilities that are 
144.8 	designated as the locally preferred alternative and that are to be constructed in the 
144.9 	metropolitan area will be acquired, developed, owned, and capable of operation in an 
144.10 	efficient, cost-effective, and coordinated manner in coordination with buses and other 
144.11 	transportation modes and facilities.
144.12 	(d) Construction of light rail transit facilities in a particular transit corridor may not 
144.13 	commence unless and until that mode is designated as the locally preferred alternative for 
144.14 	that corridor by the council commissioner.
144.15 		Subd. 1a.Integrated transportation system. The commissioner of transportation and 
144.16 	the Metropolitan Council shall ensure that light rail transit and commuter rail facilities are 
144.17 	planned, designed, and implemented: (1) to move commuters and transit users into and out 
144.18 	of, as well as within, the metropolitan area, and (2) to ensure that rail transit lines will 
144.19 	interface with each other and other transportation facilities and services so as to provide a 
144.20 	unified, integrated, and efficient multimodal transportation system.
144.21 		Subd. 5.Availability of light rail transit information. The Metropolitan Council 
144.22 	commissioner shall maintain in a centralized location on an Internet Web site, for each light 
144.23 	rail transit line operated by the councilcommissioner and for each year of operation of the 
144.24 	line:
144.25 	(1) financial data, including revenue by source and operating and capital expenses; and
144.26 	(2) ridership information, including ridership and passenger miles.

144.27 	Sec. 56. Minnesota Statutes 2016, section 473.3994, is amended to read:
144.28 	473.3994 LIGHT RAIL TRANSIT; DESIGN PLANS.
144.29 		Subd. 1a.Designation of Responsible authority. For each proposed light rail transit 
144.30 	facility in the metropolitan area, the governor must designate either the Metropolitan Council 
144.31 	or the state of Minnesota acting through the commissioner of transportation asis the entity 
144.32 	responsible for planning, designing, acquiring, constructing, and equipping the facility. 
145.1 	Notwithstanding such designation, the commissioner and the council may enter into one or 
145.2 	more cooperative agreements with respect to the planning, designing, acquiring, constructing, 
145.3 	or equipping of a particular light rail transit facility that provide for the parties to exercise 
145.4 	their respective authorities in support of the project in a manner that best serves the project 
145.5 	and the public.
145.6 		Subd. 2.Preliminary design plans; public hearing. Before final design plans are 
145.7 	prepared for a light rail transit facility in the metropolitan area, the responsible authority 
145.8 	commissioner and the regional railroad authority or authorities in whose jurisdiction the 
145.9 	line or lines are located must hold a public hearing on the physical design component of 
145.10 	the preliminary design plans. The responsible authoritycommissioner and the regional 
145.11 	railroad authority or authorities in whose jurisdiction the line or lines are located must 
145.12 	provide appropriate public notice of the hearing and publicity to ensure that affected parties 
145.13 	have an opportunity to present their views at the hearing. The responsible authority 
145.14 	commissioner shall summarize the proceedings and testimony and maintain the record of 
145.15 	a hearing held under this section, including any written statements submitted.
145.16 		Subd. 3.Preliminary design plans; local approval. At least 30 days before the hearing 
145.17 	under subdivision 2, the responsible authoritycommissioner shall submit the physical design 
145.18 	component of the preliminary design plans to the governing body of each statutory and 
145.19 	home rule charter city, county, and town in which the route is proposed to be located. The 
145.20 	city, county, or town shall hold a public hearing. Within 45 days after the hearing under 
145.21 	subdivision 2, the city, county, or town shall review and approve or disapprove the plans 
145.22 	for the route to be located in the city, county, or town. A local unit of government that 
145.23 	disapproves the plans shall describe specific amendments to the plans that, if adopted, would 
145.24 	cause the local unit to withdraw its disapproval. Failure to approve or disapprove the plans 
145.25 	in writing within 45 days after the hearing is deemed to be approval, unless an extension 
145.26 	of time is agreed to by the city, county, or town and the responsible authority commissioner.
145.27 		Subd. 4.Preliminary design plans; councilcommissioner hearing. If the governing 
145.28 	body of one or more cities, counties, or towns disapproves the preliminary design plans 
145.29 	within the period allowed under subdivision 3, the councilcommissioner shall hold a hearing 
145.30 	on the plans, giving the commissioner of transportation, if the responsible authority, any 
145.31 	disapproving local governmental units, and other persons an opportunity to present their 
145.32 	views on the plans. The councilcommissioner may conduct independent study as it deems 
145.33 	desirable and may mediate and attempt to resolve disagreements about the plans. Within 
145.34 	60 days after the hearing, the councilcommissioner shall review the plans and shall decide 
145.35 	what amendments to the plans, if any, must be made to accommodate the objections presented 
146.1 	by the disapproving local governmental units. Amendments to the plans as decided by the 
146.2 	councilcommissioner must be made before continuing the planning and designing process.
146.3 		Subd. 5.Final design plans. (a) If the final design plans incorporate a substantial change 
146.4 	from the preliminary design plans with respect to location, length, or termini of routes; 
146.5 	general dimension, elevation, or alignment of routes and crossings; location of tracks above 
146.6 	ground, below ground, or at ground level; or station locations, before beginning construction, 
146.7 	the responsible authoritycommissioner shall submit the changed component of the final 
146.8 	design plans to the governing body of each statutory and home rule city, county, and town 
146.9 	in which the changed component is proposed to be located. Within 60 days after the 
146.10 	submission of the plans, the city, county, or town shall review and approve or disapprove 
146.11 	the changed component located in the city, county, or town. A local unit of government that 
146.12 	disapproves the change shall describe specific amendments to the plans that, if adopted, 
146.13 	would cause the local unit to withdraw its disapproval. Failure to approve or disapprove the 
146.14 	changed plans in writing within the time period is deemed to be approval, unless an extension 
146.15 	is agreed to by the city, county, or town and the responsible authority commissioner.
146.16 	(b) If the governing body of one or more cities, counties, or towns disapproves the 
146.17 	changed plans within the period allowed under paragraph (a), the councilcommissioner 
146.18 	shall review the final design plans under the same procedure and with the same effect as 
146.19 	provided in subdivision 4 for preliminary design plans.
146.20 		Subd. 7.CouncilCommissioner review. If the commissioner is the responsible authority,
146.21 	Before proceeding with construction of a light rail transit facility, the commissioner of 
146.22 	transportation must submit preliminary and final design plans to the Metropolitan Council
146.23 	commissioner of administration. The councilcommissioner of administration must review 
146.24 	the plans for consistency with the council'scommissioner of administration's development 
146.25 	guide and approve the plans.
146.26 		Subd. 8.Metropolitan significance. This section does not diminish or replace the 
146.27 	authority of the councilcommissioner under section 473.173.
146.28 		Subd. 9.Light rail transit operating costs. (a) Before submitting an application for 
146.29 	federal assistance for light rail transit facilities in the metropolitan area, the Metropolitan 
146.30 	Councilcommissioner must prepare an estimate of the amount of operating subsidy which 
146.31 	will be required to operate light rail transit in the corridor to which the federal assistance 
146.32 	would be applied. The estimate must indicate the amount of operating subsidy estimated to 
146.33 	be required in each of the first ten years of operation of the light rail transit facility. If the 
147.1 	commissioner of transportation is the responsible authority, the commissioner must provide 
147.2 	information requested by the council that is necessary to make the estimate.
147.3 	(b) The councilcommissioner must review and evaluate the estimate developed under 
147.4 	paragraph (a) with regard to the effect of operating the light rail transit facility on the 
147.5 	currently available mechanisms for financing transit in the metropolitan area.
147.6 		Subd. 10.Corridor Management Committee. (a) The responsible authority 
147.7 	commissioner must establish a Corridor Management Committee to advise the responsible 
147.8 	authoritycommissioner in the design and construction of light rail transit in each corridor 
147.9 	to be constructed. The Corridor Management Committee for each corridor shall consist of 
147.10 	the following members:
147.11 	(1) one member appointed by each city and county in which the corridor is located;
147.12 	(2) the commissioner of transportation or a designee of the commissioner who shall 
147.13 	serve as chair of the committee;
147.14 	(3) two members appointed by the Metropolitan Council, one of whom shall be designated 
147.15 	as the chair of the committee;
147.16 	(4)(3) one member appointed by the Metropolitan Airports Commission, if the designated 
147.17 	corridor provides direct service to the Minneapolis-St. Paul International Airport; and
147.18 	(5)(4) one member appointed by the president of the University of Minnesota, if the 
147.19 	designated corridor provides direct service to the university.
147.20 	(b) The Corridor Management Committee shall advise the responsible authority 
147.21 	commissioner on issues relating to environmental review, preliminary design, preliminary 
147.22 	engineering, final design, implementation method, and construction of light rail transit in 
147.23 	the corridor.
147.24 		Subd. 14.Transfer of facility after construction. If the commissioner of transportation 
147.25 	is the responsible authority for a particular light rail transit facility, the commissioner must 
147.26 	transfer to the Metropolitan Council all facilities constructed and all equipment and property 
147.27 	acquired in developing the facility upon completion of construction.

147.28 	Sec. 57. Minnesota Statutes 2016, section 473.3995, is amended to read:
147.29 	473.3995 LIGHT RAIL TRANSIT; DESIGN-BUILD METHOD.
147.30 	(a) A responsible authorityThe commissioner may use a design-build method of project 
147.31 	development and construction for light rail transit. Notwithstanding any law to the contrary, 
147.32 	a responsible authoritythe commissioner may award a design-build contract on the basis 
148.1 	of requests for proposals or requests for qualifications without bids. "Design-build method 
148.2 	of project development and construction" means a project delivery system in which a single 
148.3 	contractor is responsible for both the design and construction of the project and bids the 
148.4 	design and construction together.
148.5 	(b) If a responsible authoritythe commissioner utilizes a design-build method of project 
148.6 	development and construction for light rail transit, the requirements and procedures in 
148.7 	sections 161.3410 to 161.3426 apply to the procurement, subject to the following conditions 
148.8 	and exceptions:
148.9 	(1) if the Metropolitan Council is the responsible authority for a particular light rail 
148.10 	transit project, when used in sections 161.3410 to 161.3426, (i) the terms "commissioner," 
148.11 	"Minnesota Department of Transportation," "department," "state agencies," and "road 
148.12 	authority" refer to the Metropolitan Council, and (ii) the term "state" refers to the 
148.13 	Metropolitan Council except in references to state law or in references to the state as a 
148.14 	geographical location;
148.15 	(2)(1) the provisions of section 161.3412, subdivisions 3 and 4, are not applicable to 
148.16 	the procurement; and
148.17 	(3)(2) if any federal funds are used in developing or constructing the light rail transit 
148.18 	project, any provisions in sections 161.3410 to 161.3426 that are inconsistent with, or 
148.19 	prohibited by, any federal law, regulation, or other requirement are not applicable to the 
148.20 	procurement.

148.21 	Sec. 58. Minnesota Statutes 2016, section 473.3997, is amended to read:
148.22 	473.3997 FEDERAL FUNDING; LIGHT RAIL TRANSIT.
148.23 	(a) Upon completion of the alternatives analysis and draft environmental impact statement, 
148.24 	and selection of the locally preferred alternative, for each light rail transit facility, the 
148.25 	responsible authoritycommissioner may prepare an application for federal assistance for 
148.26 	the light rail transit facility. If the commissioner is the responsible authority, the application 
148.27 	must be reviewed and approved by the Metropolitan Council before it is submitted by the 
148.28 	commissioner. In reviewing the application the council must consider the operating cost 
148.29 	estimate developed under section 473.3994, subdivision 9.
148.30 	(b) Except for the designated responsible authority for a particular light rail transit 
148.31 	facility, No political subdivision in the metropolitan area may on its own apply for federal 
148.32 	assistance for light rail transit planning or construction.

149.1 	Sec. 59. Minnesota Statutes 2016, section 473.405, is amended to read:
149.2 	473.405 POWERS.
149.3 		Subdivision 1.General. The Metropolitan Councilcommissioner has the powers and 
149.4 	duties prescribed by this section and sections 473.407 to 473.449 and all powers necessary 
149.5 	or convenient to discharge its duties.
149.6 		Subd. 3.Condemnation. The councilcommissioner may for transit purposes acquire 
149.7 	property, franchises, easements, or property rights or interests of any kind by condemnation 
149.8 	proceedings pursuant to chapter 117. Except as provided in subdivision 9, the council
149.9 	commissioner may take possession of any property for which condemnation proceedings 
149.10 	have been commenced at any time after the filing of the petition describing the property in 
149.11 	the proceedings. The councilcommissioner may contract with an operator or other persons 
149.12 	for the use by the operator or person of any property under the council's commissioner's 
149.13 	control.
149.14 		Subd. 4.Transit systems. The councilcommissioner may engineer, construct, equip, 
149.15 	and operate transit and paratransit systems, projects, or any parts thereof, including road 
149.16 	lanes or rights-of-way, terminal facilities, maintenance and garage facilities, ramps, parking 
149.17 	areas, and any other facilities useful for or related to any public transit or paratransit system 
149.18 	or project. The councilcommissioner may sell or lease naming rights with regard to light 
149.19 	rail transit stations and apply revenues from sales or leases to light rail transit operating 
149.20 	costs.
149.21 		Subd. 5.Acquisition of transit systems. The councilcommissioner may acquire by 
149.22 	purchase, lease, gift, or condemnation proceedings any existing public transit system or any 
149.23 	part thereof, including all or any part of the plant, equipment, shares of stock, property, real, 
149.24 	personal, or mixed, rights in property, reserve funds, special funds, franchises, licenses, 
149.25 	patents, permits and papers, documents and records belonging to any operator of a public 
149.26 	transit system within the metropolitan area, and may in connection therewith assume any 
149.27 	or all liabilities of any operator of a public transit system. The council commissioner may 
149.28 	take control of and operate a system immediately following the filing and approval of the 
149.29 	initial petition for condemnation, if the council commissioner, in its the commissioner's
149.30 	discretion, determines this to be necessary, and may take possession of all right, title and 
149.31 	other powers of ownership in all properties and facilities described in the petition. Control 
149.32 	must be taken by resolution which is effective upon service of a copy on the condemnee 
149.33 	and the filing of the resolution in the condemnation action. In the determination of the fair 
149.34 	value of the existing public transit system, there must not be included any value attributable 
150.1 	to expenditures for improvements made by the former Metropolitan Transit Commission 
150.2 	or Council.
150.3 		Subd. 9.Condemnation of public or public service corporation property. The fact 
150.4 	that property is owned by or is in charge of a public agency or a public service corporation 
150.5 	organized for a purpose specified in section 301B.01, or is already devoted to a public use 
150.6 	or to use by the corporation or was acquired therefor by condemnation may not prevent its 
150.7 	acquisition by the councilcommissioner by condemnation, but if the property is in actual 
150.8 	public use or in actual use by the corporation for any purpose of interest or benefit to the 
150.9 	public, the taking by the councilcommissioner by condemnation may not be authorized 
150.10 	unless the court finds and determines that there is greater public necessity for the proposed 
150.11 	use by the councilcommissioner than for the existing use.
150.12 		Subd. 10.Voluntary transfer of public property. Any state department or other agency 
150.13 	of the state government or any county, municipality, or other public agency may sell, lease, 
150.14 	grant, transfer, or convey to the council department, with or without consideration, any 
150.15 	facilities or any part or parts thereof or any real or personal property or interest therein 
150.16 	which may be useful to the council department for any authorized purpose. In any case 
150.17 	where the construction of a facility has not been completed, the public agency concerned 
150.18 	may also transfer, sell, assign, and set over to the council department, with or without 
150.19 	consideration, any existing contract for the construction of the facilities.
150.20 		Subd. 12.Management contracts. Notwithstanding any of the other provisions of this 
150.21 	section and sections 473.407 to 473.449, the councilcommissioner may, in lieu of directly 
150.22 	operating any public transit system or any part thereof, enter into contracts for management 
150.23 	services. The contracts may provide for compensation, incentive fees, the employment of 
150.24 	personnel, the services provided, and other terms and conditions that the council
150.25 	commissioner deems proper. The contracts must provide that the compensation of personnel 
150.26 	who work full time or substantially full time providing management or other services for 
150.27 	the councilcommissioner is public data under chapter 13.
150.28 	The councilcommissioner may not permit a contract manager to supervise or manage 
150.29 	internal audit activities. Internal audit activity must be supervised and managed directly by 
150.30 	the council commissioner. The councilcommissioner shall advertise for bids and select 
150.31 	contracts for management services through competitive bidding. The term of the contract 
150.32 	may not be longer than two years. The contract must include clear operating objectives, 
150.33 	stating the service policies and goals of the councilcommissioner in terms of the movement 
150.34 	of various passenger groups, and performance criteria, by means of which success in 
150.35 	achieving the operating objectives can be measured. The councilcommissioner shall consider 
151.1 	and determine the feasibility and desirability of having all its transit management services 
151.2 	provided internally by employees of the council department.
151.3 	The employees of any public transit system operated pursuant to the provisions of this 
151.4 	subdivision for the purpose of resolving any dispute arising under any existing or new 
151.5 	collective bargaining agreement relating to the terms or conditions of their employment, 
151.6 	may either engage in a concerted refusal to work or to invoke the processes of final and 
151.7 	binding arbitration as provided by chapter 572, subject to any applicable provisions of the 
151.8 	agreement not inconsistent with law.
151.9 		Subd. 15.Relocation of displaced persons. The councilcommissioner may plan for 
151.10 	and assist in the relocation of individuals, families, business concerns, nonprofit 
151.11 	organizations, and others displaced by operations of the council department, and may make 
151.12 	relocation payments in accordance with federal regulations.

151.13 	Sec. 60. Minnesota Statutes 2016, section 473.4051, subdivision 1, is amended to read:
151.14 		Subdivision 1.Operator. The councilcommissioner shall operate all light rail transit 
151.15 	facilities and services located in the metropolitan area upon completion of construction of 
151.16 	the facilities and the commencement of revenue service using the facilities. The council
151.17 	commissioner may not allow the commencement of revenue service until after an appropriate 
151.18 	period of acceptance testing to ensure safe and satisfactory performance. In assuming the 
151.19 	operation of the system, the councilcommissioner must comply with section 473.415. The 
151.20 	councilcommissioner shall coordinate operation of the light rail transit system with bus 
151.21 	service to avoid duplication of service on a route served by light rail transit and to ensure 
151.22 	the widest possible access to light rail transit lines in both suburban and urban areas by 
151.23 	means of a feeder bus system.

151.24 	Sec. 61. Minnesota Statutes 2016, section 473.4056, subdivision 1, is amended to read:
151.25 		Subdivision 1.Adoption of standards. (a) By January 1, 2015, the Metropolitan Council 
151.26 	shall adopt and may thereafterThe commissioner of transportation may amend standards 
151.27 	for the design of light rail vehicles that are reasonably necessary to provide access for, and 
151.28 	to protect the health and safety of, persons who use the service. All light rail transit vehicles 
151.29 	procured on and after January 1, 2015, must conform to the standards then in effect.
151.30 	(b) The Transportation Accessibility Advisory Committee must review the standards 
151.31 	and all subsequent amendments before the Metropolitan Council adopts them standards go 
151.32 	into effect.
152.1 	(c) The Metropolitan Councilcommissioner shall post adopted standards, including 
152.2 	amendments, on its Web site.

152.3 	Sec. 62. Minnesota Statutes 2016, section 473.4057, subdivision 1, is amended to read:
152.4 		Subdivision 1.General. Notwithstanding the provisions of sections 174.82 and 174.90, 
152.5 	the Metropolitan Councilcommissioner must operate and maintain commuter rail facilities 
152.6 	and services in any corridor that is located in whole or in part in the metropolitan area. The 
152.7 	council's operation and maintenance of the facilities and services must commence upon 
152.8 	completion of the planning, development, and construction of the commuter rail facilities 
152.9 	by the commissioner of transportation and the commencement of prerevenue service this 
152.10 	state.

152.11 	Sec. 63. Minnesota Statutes 2016, section 473.4057, subdivision 2, is amended to read:
152.12 		Subd. 2.Commuter rail equipment, supplies, and materials. The council commissioner 
152.13 	is authorized to acquire equipment, supplies, and materials, including rolling stock, necessary 
152.14 	for any commuter rail service that is subject to this section. This authority may be exercised 
152.15 	either before or after the commencement of revenue service on a particular commuter rail 
152.16 	line.

152.17 	Sec. 64. Minnesota Statutes 2016, section 473.4057, subdivision 3, is amended to read:
152.18 		Subd. 3.Commuter rail improvements. After the commencement of revenue service 
152.19 	in a particular commuter rail corridor, the councilcommissioner is responsible for planning, 
152.20 	development, design, acquisition, construction, and equipping of any improvements to 
152.21 	commuter rail facilities or service in that corridor.

152.22 	Sec. 65. Minnesota Statutes 2016, section 473.4057, subdivision 4, is amended to read:
152.23 		Subd. 4.Procurement for commuter rail; best value alternative. (a) Notwithstanding 
152.24 	the provisions of section 471.345, for purchases related to the council'scommissioner's 
152.25 	maintenance and operation of commuter rail lines, the council commissioner may award a 
152.26 	contract for the purchase of supplies, materials, equipment or the rental thereof, or the 
152.27 	construction, alteration, improvement, repair, or maintenance of real or personal property 
152.28 	to the vendor or contractor offering the best value under a request for proposals.
152.29 	(b) For the purposes of this section, "best value" describes a result intended in the 
152.30 	acquisition of goods and services described in paragraph (a). Price must be one of the 
152.31 	evaluation criteria when acquiring such goods and services. Other evaluation criteria may 
153.1 	include, but are not limited to, environmental considerations, quality, and vendor 
153.2 	performance. A best value determination must be based on the evaluation criteria detailed 
153.3 	in the solicitation document. If criteria other than price are used, the solicitation document 
153.4 	must state the relative importance of price and other factors.

153.5 	Sec. 66. Minnesota Statutes 2016, section 473.4057, subdivision 6, is amended to read:
153.6 		Subd. 6.Agreements with other parties. The councilcommissioner may enter into 
153.7 	memoranda of understanding, joint powers agreements, or other agreements with public or 
153.8 	private entities including, without limitation, political subdivisions, regional railroad 
153.9 	authorities, metropolitan planning organizations, joint powers boards, the commissioner of 
153.10 	transportation, or railroads, to carry out its responsibilities under this section.

153.11 	Sec. 67. Minnesota Statutes 2016, section 473.4057, subdivision 7, is amended to read:
153.12 		Subd. 7.Expenditure of funds and exercise of powers. In carrying out its 
153.13 	responsibilities under this section and notwithstanding any other law to the contrary, the 
153.14 	councilcommissioner may expend funds and exercise, both inside and outside the 
153.15 	metropolitan area, those powers in this chapter that are necessary or convenient for those 
153.16 	purposes. The jurisdiction of the metropolitan transit police under section 473.405 extends 
153.17 	to offenses relating to the operation, property, facilities, equipment, employees, and 
153.18 	passengers of any commuter rail facilities and services that are subject to this section.

153.19 	Sec. 68. Minnesota Statutes 2016, section 473.4057, subdivision 8, is amended to read:
153.20 		Subd. 8.Application of section 174.82. Except for those provisions that provide that 
153.21 	the commissioner of transportation is responsible for operating and maintaining commuter 
153.22 	rail, The provisions of section 174.82 apply to commuter rail facilities and services that are 
153.23 	subject to this section. Without limitation as to its application, the provisions of section 
153.24 	174.82 apply when the council is carrying out its responsibilities for commuter rail under 
153.25 	this section to the same extent as those provisions would apply if the council were carrying 
153.26 	out its responsibilities under contract to the commissioner.

153.27 	Sec. 69. Minnesota Statutes 2016, section 473.407, subdivision 1, is amended to read:
153.28 		Subdivision 1.Authorization. The councilcommissioner may appoint peace officers, 
153.29 	as defined in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement 
153.30 	agency, as defined in section 626.84, subdivision 1, paragraph (f), known as the Metropolitan 
153.31 	Transit Police, to police its transit property and routes, to carry out investigations, and to 
154.1 	make arrests under sections 629.30 and 629.34. The jurisdiction of the law enforcement 
154.2 	agency is limited to offenses relating to councilthe department's transit property, equipment, 
154.3 	employees, and passengers. The jurisdiction of the Metropolitan Transit Police shall include 
154.4 	traffic lanes designed for bus or transit use, freeway or expressway shoulders in the 
154.5 	seven-county metropolitan area used by authorized transit buses and Metro Mobility buses 
154.6 	under section 169.306, and high-occupancy vehicle lanes used by transit buses. Upon request 
154.7 	from, or under an agreement with, any law enforcement agency and subject to the availability 
154.8 	of its personnel and other resources, the Metropolitan Transit Police may exercise general 
154.9 	law enforcement agency authority to assist any law enforcement agency in implementing 
154.10 	or carrying out law enforcement activities, programs, or initiatives. If the commissioner of 
154.11 	transportation contracts with the Metropolitan Council for operation of commuter rail 
154.12 	facilities under section 174.90, The jurisdiction of the Metropolitan Transit Police extends 
154.13 	to offenses relating to the operation, property, facilities, equipment, employees, and 
154.14 	passengers of the commuter rail facilities located in and outside of the metropolitan area.

154.15 	Sec. 70. Minnesota Statutes 2016, section 473.407, subdivision 3, is amended to read:
154.16 		Subd. 3.Policy for notice of investigations. The transit police must develop a policy 
154.17 	for notifying the law enforcement agency with primary jurisdiction when it has initiated 
154.18 	surveillance or investigation of any person within the jurisdiction of that agency. The council
154.19 	commissioner shall train all of its peace officers regarding the application of this policy.

154.20 	Sec. 71. Minnesota Statutes 2016, section 473.407, subdivision 4, is amended to read:
154.21 		Subd. 4.Chief law enforcement officer. The regional administratorcommissioner shall 
154.22 	appoint a peace officer employed full time to be the chief law enforcement officer and to 
154.23 	be responsible for the management of the metropolitan transit police. The chief law 
154.24 	enforcement officer shall possess the necessary police and management experience to 
154.25 	manage a law enforcement agency. The chief law enforcement officer may appoint, 
154.26 	discipline, and discharge all transit police personnel. All police managerial and supervisory 
154.27 	personnel must be full-time employees of the Metropolitan Transit Police. Supervisory 
154.28 	personnel must be on duty and available any time transit police are on duty. The chief law 
154.29 	enforcement officer may not hire part-time peace officers as defined in section 626.84, 
154.30 	subdivision 1, paragraph (d), except that the chief may appoint peace officers to work on a 
154.31 	part-time basis not to exceed 30 full-time equivalents. A part-time officer must maintain an 
154.32 	active peace officer license with the officer's full-time law enforcement employer.

155.1 	Sec. 72. Minnesota Statutes 2016, section 473.407, subdivision 5, is amended to read:
155.2 		Subd. 5.Emergencies. (a) The councilcommissioner shall ensure that all emergency 
155.3 	vehicles used by transit police are equipped with radios capable of receiving and transmitting 
155.4 	on the same frequencies utilized by the law enforcement agencies that have primary 
155.5 	jurisdiction.
155.6 	(b) When the transit police receive an emergency call they shall notify the public safety 
155.7 	agency with primary jurisdiction and coordinate the appropriate response.
155.8 	(c) Transit police officers shall notify the primary jurisdictions of their response to any 
155.9 	emergency.

155.10 	Sec. 73. Minnesota Statutes 2016, section 473.408, is amended to read:
155.11 	473.408 FARE POLICY.
155.12 		Subd. 2.Fare policy. (a) Fares and fare collection systems shall be established and 
155.13 	administered to accomplish the following purposes:
155.14 	(1) to encourage and increase transit and paratransit ridership with an emphasis on regular 
155.15 	ridership;
155.16 	(2) to restrain increases in the average operating subsidy per passenger;
155.17 	(3) to ensure that no riders on any route pay more in fares than the average cost of 
155.18 	providing the service on that route;
155.19 	(4) to ensure that operating revenues are proportioned to the cost of providing the service 
155.20 	so as to reduce any disparity in the subsidy per passenger on routes in the transit system; 
155.21 	and
155.22 	(5) to implement the social fares as set forth in subdivision 2b.
155.23 	(b) The plan must contain a statement of the policies that will govern the imposition of 
155.24 	user charges for various types of transit service and the policies that will govern decisions 
155.25 	by the councilcommissioner to change fare policy.
155.26 		Subd. 2a.Regular route fares. The councilcommissioner shall establish and enforce 
155.27 	uniform fare policies for regular route transit in the metropolitan area. The policies must 
155.28 	be consistent with the requirements of this section and the council's transportation policy 
155.29 	plan. The councilcommissioner and other operators shall charge a base fare and any 
155.30 	surcharges for peak hours and distance of service in accordance with the council's 
155.31 	commissioner's fares policies. The councilcommissioner shall approve all fare schedules.
156.1 		Subd. 2b.Social fares. For the purposes of raising revenue for improving public safety 
156.2 	on transit vehicles and at transit hubs or stops, the councilcommissioner shall review and 
156.3 	may adjust its social fares as they relate to passengers under the age of 18 during high crime 
156.4 	times provided that the increased revenues are dedicated to improving the safety of all 
156.5 	passengers.
156.6 		Subd. 4.Circulation fares. The councilcommissioner and other operators may charge 
156.7 	a reduced fare for service on any route providing circulation service in a downtown area or 
156.8 	community activity center. The councilcommissioner and other operators shall not contribute 
156.9 	more than 50 percent of the operating deficit of any such route that is confined to a downtown 
156.10 	area or community activity center. The boundaries of service districts eligible for reduced 
156.11 	fares under this subdivision must be approved by the council commissioner.
156.12 		Subd. 6.Monthly passes. The councilcommissioner may offer monthly passes for 
156.13 	regular route bus service for sale to the general public.
156.14 		Subd. 7.Employee discount passes. The councilcommissioner may offer passes for 
156.15 	regular route bus service for sale to employers at a special discount.
156.16 		Subd. 8.Charitable organization discount passes. The councilcommissioner may 
156.17 	offer passes, including tokens, for regular route bus service for sale to charitable 
156.18 	organizations, described in section 501(c)(3) of the Internal Revenue Code, at a special 
156.19 	discount.
156.20 		Subd. 9.Youth discount passes. (a) The councilcommissioner may offer passes, 
156.21 	including tokens, for regular route bus service to charitable organizations, described in 
156.22 	section 501(c)(3) of the Internal Revenue Code, free of charge. Any passes provided under 
156.23 	this subdivision must be:
156.24 	(1) distributed to and used solely by a person who is under 16 years of age; and
156.25 	(2) restricted to use on a bus that is not operating at full capacity at the time of use of 
156.26 	the bus pass.
156.27 	(b) The councilcommissioner may establish additional requirements and terms of use 
156.28 	of the passes, including but not limited to charging a fee to the charitable organization for 
156.29 	any printing or production costs, restricting times of bus pass use to certain or nonpeak 
156.30 	hours of operation, and establishing oversight and auditing of the charitable organization 
156.31 	with regard to bus pass distribution and use.
156.32 		Subd. 10.Transit service for disabled veterans. (a) On and after July 1, 2009, the 
156.33 	councilcommissioner shall provide regular route transit, as defined in section 473.385, 
157.1 	subdivision 1, free of charge for veterans, as defined in section 197.447, certified as disabled. 
157.2 	For purposes of this section, "certified as disabled" means certified in writing by the United 
157.3 	States Department of Veterans Affairs or the state commissioner of veterans affairs as having 
157.4 	a permanent service-connected disability.
157.5 	(b) The requirements under this subdivision apply to operators of regular route transit 
157.6 	(1) receiving financial assistance under section 473.388, or (2) operating under section 
157.7 	473.405, subdivision 12.

157.8 	Sec. 74. Minnesota Statutes 2016, section 473.409, is amended to read:
157.9 	473.409 AGREEMENTS WITH COUNCIL COMMISSIONER; 
157.10 	ENCOURAGEMENT OF TRANSIT USE.
157.11 	A state department or agency, including the legislative branch, any local governmental 
157.12 	unit, or a metropolitan agency may enter into an agreement with the council commissioner 
157.13 	and other operators for the purpose of encouraging the use of transit by its employees residing 
157.14 	in the metropolitan area. The agreement may provide for, among other things: (a) the advance 
157.15 	purchase of tokens, tickets or other devices from the council commissioner or other operator 
157.16 	for use in lieu of fares on vehicles operated by the council commissioner or other operator; 
157.17 	and (b) special transit service for employees to and from their place of employment, at fares 
157.18 	to be agreed upon by the contracting parties. The tokens, tickets, or other devices or services 
157.19 	may be made available to employees at reduced rates. Any such agreement and arrangement 
157.20 	by a state department or agency shall be submitted to the commissioner of administration 
157.21 	for approval before execution. Any operating deficits or subsidy resulting from such 
157.22 	agreements shall be assumed by the contracting department, agency, governmental unit, or 
157.23 	other commission, unless otherwise provided in an agreement approved by the council
157.24 	commissioner.

157.25 	Sec. 75. Minnesota Statutes 2016, section 473.41, subdivision 1, is amended to read:
157.26 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
157.27 	the meanings given.
157.28 	(b) "Transit authority" means:
157.29 	(1) a statutory or home rule charter city, with respect to rights-of-way at bus stop and 
157.30 	train stop locations, transit shelters, and transit passenger seating facilities owned by the 
157.31 	city or established pursuant to a vendor contract with the city;
158.1 	(2) the Metropolitan Council commissioner of transportation, with respect to transit 
158.2 	shelters and transit passenger seating facilities owned by the councilDepartment of 
158.3 	Transportation or established pursuant to a vendor contract with the council department; or
158.4 	(3) a replacement service provider under section 473.388, with respect to rights-of-way 
158.5 	at bus stop and train stop locations, transit shelters, and transit passenger seating facilities 
158.6 	owned by the provider or established pursuant to a vendor contract with the provider.
158.7 	(c) "Transit shelter" means a wholly or partially enclosed structure provided for public 
158.8 	use as a waiting area in conjunction with light rail transit, bus rapid transit, or regular route 
158.9 	transit.

158.10 	Sec. 76. Minnesota Statutes 2016, section 473.411, subdivision 5, is amended to read:
158.11 		Subd. 5.Use of public roadways and appurtenances. The councilcommissioner may 
158.12 	use for the purposes of sections 473.405 to 473.449 upon the conditions stated in this 
158.13 	subdivision any state highway or other public roadway, parkway, or lane, or any bridge or 
158.14 	tunnel or other appurtenance of a roadway, without payment of any compensation, provided 
158.15 	the use does not interfere unreasonably with the public use or maintenance of the roadway 
158.16 	or appurtenance or entail any substantial additional costs for maintenance. The provisions 
158.17 	of this subdivision do not apply to the property of any common carrier railroad or common 
158.18 	carrier railroads. The consent of the public agency in charge of such state highway or other 
158.19 	public highway or roadway or appurtenance is not required; except that if the council
158.20 	commissioner seeks to use a designated parkway for regular route service in the city of 
158.21 	Minneapolis, it must obtain permission from and is subject to reasonable limitations imposed 
158.22 	by a joint board consisting of two representatives from the council of the department, two 
158.23 	members of the board of park commissioners, and a fifth member jointly selected by the 
158.24 	other members of the board. If the use is a designated Minneapolis parkway for regular 
158.25 	route service adjacent to the city of Minneapolis, it must obtain permission from and is 
158.26 	subject to reasonable limitations imposed by a joint board consisting of two representatives 
158.27 	from the council of the department, two members of the board of park commissioners, and 
158.28 	a fifth member jointly selected by other members of the board. The joint board must include 
158.29 	a nonvoting member appointed by the council of commissioner and residing in the city in 
158.30 	which the parkway is located.
158.31 	The board of park commissioners and the councilcommissioner may designate persons 
158.32 	to sit on the joint board. In considering a request by the councilcommissioner to use 
158.33 	designated parkways for additional routes or trips, the joint board consisting of the council
158.34 	commissioner or their the commissioner's designees, the board of park commissioners or 
159.1 	theirthe commissioner's designees, and the fifth member, shall base its decision to grant or 
159.2 	deny the request based on the criteria to be established by the joint board. The decision to 
159.3 	grant or deny the request must be made within 45 days of the date of the request. The park 
159.4 	board must be notified immediately by the councilcommissioner of any temporary route 
159.5 	detours. If the park board objects to the temporary route detours within five days of being 
159.6 	notified, the joint board must convene and decide whether to grant the request, otherwise 
159.7 	the request is deemed granted. If the agency objects to the proposed use or claims 
159.8 	reimbursement from the councilcommissioner for additional cost of maintenance, it may 
159.9 	commence an action against the councildepartment in the district court of the county wherein 
159.10 	the highway, roadway, or appurtenance, or major portion thereof, is located. The proceedings 
159.11 	in the action must conform to the Rules of Civil Procedure applicable to the district courts. 
159.12 	The court shall sit without jury. If the court determines that the use in question interferes 
159.13 	unreasonably with the public use or maintenance of the roadway or appurtenance, it shall 
159.14 	enjoin the use by the council commissioner. If the court determines that the use in question 
159.15 	does not interfere unreasonably with the public use or maintenance of the roadway or 
159.16 	appurtenance, but that it entails substantial additional maintenance costs, the court shall 
159.17 	award judgment to the agency for the amount of the additional costs. Otherwise the court 
159.18 	shall award judgment to the council department. An aggrieved party may appeal from the 
159.19 	judgment of the district court in the same manner as is provided for such appeals in other 
159.20 	civil actions. The councilcommissioner may also use land within the right-of-way of any 
159.21 	state highway or other public roadway for the erection of traffic-control devices, other signs, 
159.22 	and passenger shelters upon the conditions stated in this subdivision and subject only to the 
159.23 	approval of the commissioner of transportation where required by statute, and subject to 
159.24 	the express provisions of other applicable statutes and to federal requirements where 
159.25 	necessary to qualify for federal aid.

159.26 	Sec. 77. Minnesota Statutes 2016, section 473.415, subdivision 1, is amended to read:
159.27 		Subdivision 1.Includes no worse off clause. If the councilcommissioner acquires an 
159.28 	existing transit system, the councilcommissioner shall assume and observe all existing 
159.29 	labor contracts and pension obligations. All employees of such system except executive 
159.30 	and administrative officers who are necessary for thesystem operation thereof by the council
159.31 	shall be transferred to and appointed as employees of the councildepartment for the purposes 
159.32 	of the transit system, subject to all the rights and benefits of sections 473.405 to 473.449. 
159.33 	SuchThe employees shall be given seniority credit and sick leave, vacation, insurance, and 
159.34 	pension credits in accordance with the records or labor agreements from the acquired transit 
159.35 	system. The councildepartment shall assume the obligations of any transit system acquired 
160.1 	by it with regard to wages, salaries, hours, working conditions, sick leave, health and welfare 
160.2 	and pension or retirement provisions for employees. The councildepartment and the 
160.3 	employees, through their representatives for collective bargaining purposes, shall take 
160.4 	whatever action may be necessary to have pension trust funds presently under the joint 
160.5 	control of the acquired system and the participating employees through their representatives 
160.6 	transferred to the trust fund to be established, maintained and administered jointly by the 
160.7 	councildepartment and the participating employees through their representatives. No 
160.8 	employee of any acquired system who is transferred to a position with the councildepartment 
160.9 	shall by reason of such transfer be placed in any worse position with respect to workers' 
160.10 	compensation, pension, seniority, wages, sick leave, vacation, health and welfare insurance 
160.11 	or any other benefits than the employee enjoyed as an employee of such acquired system.

160.12 	Sec. 78. Minnesota Statutes 2016, section 473.416, is amended to read:
160.13 	473.416 RIGHTS OF SYSTEM WORKERS IN TAKEOVER OF TRANSIT 
160.14 	SYSTEM.
160.15 	Whenever the councilcommissioner directly operates any public transit system, or any 
160.16 	part thereof, or enters into any management contract or other arrangement for the operation 
160.17 	of a system, the councilcommissioner shall take the action necessary to extend to employees 
160.18 	of the affected public transit systems, in accordance with seniority, the first opportunity for 
160.19 	reasonably comparable employment in any available nonsupervisory jobs in respect to such 
160.20 	operations for which they can qualify after a reasonable training period. The employment 
160.21 	must not result in any worsening of the employee's position in the employee's former 
160.22 	employment nor any loss of wages, hours, working conditions, seniority, fringe benefits, 
160.23 	and rights and privileges pertaining thereto. The council commissioner may enter into an 
160.24 	agreement specifying fair and equitable arrangements to protect the interests of employees 
160.25 	who may be affected if the councilcommissioner should acquire any interest in or purchase 
160.26 	any facilities or other property of a privately owned and operated transit system, or construct, 
160.27 	improve, or reconstruct any facilities or other property acquired from any system, or provide 
160.28 	by contract or otherwise for the operation of transportation facilities or equipment in 
160.29 	competition with, or supplementary to, the service provided by an existing transit system. 
160.30 	The agreement, specifying the terms and conditions of the protective arrangements, must 
160.31 	comply with any applicable requirements of this chapter, and with the requirements of any 
160.32 	federal law or regulation if federal aid is involved. The agreement may provide for final 
160.33 	and binding arbitration of any dispute.

161.1 	Sec. 79. Minnesota Statutes 2016, section 473.42, is amended to read:
161.2 	473.42 EMPLOYER CONTRIBUTIONS FOR CERTAIN EMPLOYEES.
161.3 	Notwithstanding any contrary provisions of section 352.029, the councilstate shall make 
161.4 	the employer contributions required pursuant to section 352.04, subdivision 3, for any 
161.5 	employee who was on authorized leave of absence from the transit operating division of 
161.6 	the former Metropolitan Transit Commission who is employed by the labor organization 
161.7 	which is the exclusive bargaining agent representing Metro Transit Division employees of 
161.8 	the council and who is covered by the Minnesota State Retirement System in addition to 
161.9 	all other employer contributions the councilstate is required to make.

161.10 	Sec. 80. Minnesota Statutes 2016, section 473.436, subdivision 2, is amended to read:
161.11 		Subd. 2.Legal investments. Certificates of indebtedness, bonds, or other obligations 
161.12 	issued by the councilMetropolitan Area Transit Board to which tax levies have been pledged 
161.13 	pursuant to section 473.446, subdivision 1, shall be proper for investment of any funds by 
161.14 	any bank, savings bank, savings association, credit union, trust company, insurance company 
161.15 	or public or municipal corporation, and may be pledged by any bank, savings bank, savings 
161.16 	association, credit union, or trust company as security for the deposit of public moneys.

161.17 	Sec. 81. Minnesota Statutes 2016, section 473.436, subdivision 3, is amended to read:
161.18 		Subd. 3.Tax exempt. Certificates of indebtedness, bonds, or other obligations of the 
161.19 	councilissued under section 473.39 or this section shall be deemed and treated as 
161.20 	instrumentalities of a public government agency.

161.21 	Sec. 82. Minnesota Statutes 2016, section 473.436, subdivision 6, is amended to read:
161.22 		Subd. 6.Temporary borrowing. On or after the first day of any fiscal year, the council
161.23 	Metropolitan Area Transit Board may borrow money which may be used or expended by 
161.24 	the councilcommissioner of transportation for any purpose, including but not limited to
161.25 	current expenses, capital expenditures and the discharge of any obligation or indebtedness 
161.26 	of the council related to metropolitan area transit purposes. The indebtedness must be 
161.27 	represented by a note or notes which may be issued from time to time in any denomination 
161.28 	and sold at public or private sale pursuant to a resolution authorizing the issuance. The 
161.29 	resolution must set forth the form and manner of execution of the notes and shall contain 
161.30 	other terms and conditions the councilboard deems necessary or desirable to provide security 
161.31 	for the holders of the notes. The note or notes are payable from committed or appropriated 
161.32 	money from taxes, grants or loans of the state or federal government made to the council
162.1 	board or the commissioner, or other revenues of the council commissioner for metropolitan 
162.2 	area transit purposes, and the money may be pledged to the payment of the notes. The 
162.3 	council isboard and the commissioner are authorized to pledge to the payment of the note 
162.4 	or notes taxes levied by it under section 473.446, subdivision 1, clause (a), and if taxes are 
162.5 	so pledged the council shall transfer amounts received from the levy shall be transferred to 
162.6 	the councilboard for payment of the note or notes. To the extent the notes are not paid from 
162.7 	the grant or loan money pledged for the payment thereof, the principal and interest of the 
162.8 	notes must be paid from any taxes received by the councilboard and any income and revenue 
162.9 	received by or accrued to the councilcommissioner during the fiscal year in which the note 
162.10 	or notes were issued, or other money of the council lawfully available therefor.

162.11 	Sec. 83. Minnesota Statutes 2016, section 473.446, subdivision 1, is amended to read:
162.12 		Subdivision 1.Metropolitan area transit tax. (a) For the purposes of sections 473.405
162.13 	to 473.449 and the metropolitan transit system, except as otherwise provided in this 
162.14 	subdivision, the councilMetropolitan Area Transit Board established in subdivision 1c, 
162.15 	shall levy each year upon all taxable property within the metropolitan area, defined in section 
162.16 	473.121, subdivision 2, a transit tax consisting of:
162.17 	(1) an amount necessary to provide full and timely payment of certificates of indebtedness, 
162.18 	bonds, including refunding bonds or other obligations issued or to be issued under section 
162.19 	473.39by the council for purposes of acquisition and betterment of property and other 
162.20 	improvements of a capital nature and to which the former Metropolitan Council, or the 
162.21 	Metropolitan Area Transit Board, as applicable, has specifically pledged tax levies under 
162.22 	this clause; and
162.23 	(2) an additional amount necessary to provide full and timely payment of certificates of 
162.24 	indebtedness issued by the former Metropolitan Council or the Metropolitan Area Transit 
162.25 	Board, after consultation with the commissioner of management and budget, if revenues to 
162.26 	the metropolitan area transit fund in the fiscal year in which the indebtedness is issued 
162.27 	increase over those revenues in the previous fiscal year by a percentage less than the 
162.28 	percentage increase for the same period in the revised Consumer Price Index for all urban 
162.29 	consumers for the St. Paul-Minneapolis metropolitan area prepared by the United States 
162.30 	Department of Labor.
162.31 	(b) Indebtedness to which property taxes have been pledged under paragraph (a), clause 
162.32 	(2), that is incurred in any fiscal year may not exceed the amount necessary to make up the 
162.33 	difference between (1) the amount that the councilcommissioner of transportation received 
162.34 	or expects to receive in that fiscal year from the metropolitan area transit fund and (2) the 
163.1 	amount the former Metropolitan Council or the commissioner received from that fund in 
163.2 	the previous fiscal year multiplied by the percentage increase for the same period in the 
163.3 	revised Consumer Price Index for all urban consumers for the St. Paul-Minneapolis 
163.4 	metropolitan area prepared by the United States Department of Labor.

163.5 	Sec. 84. Minnesota Statutes 2016, section 473.446, is amended by adding a subdivision 
163.6 	to read:
163.7 		Subd. 1c.Metropolitan Area Transit Board. (a) A Metropolitan Area Transit Board 
163.8 	is established, consisting of one commissioner of each county included in whole or in part 
163.9 	within the transit taxing district designated in subdivision 2. Each of those county boards 
163.10 	must appoint its initial member to the Metropolitan Area Transit Board by June 1, 2017.
163.11 	(b) The board must annually set the levy as required under this section, and may issue 
163.12 	obligations as provided in section 473.39, and borrow as provided in section 473.436. Each 
163.13 	member's term on the board ends four years after the date of appointment or when the 
163.14 	member ceases to be a county commissioner. The county board will appoint a successor 
163.15 	member to represent the county on the transit board.
163.16 	(c) The board may utilize no more than ... percent of the proceeds of the tax imposed 
163.17 	under this section for ordinary administrative expenses incurred in carrying out the provisions 
163.18 	of this section and sections 473.436 and 473.39. Any additional administrative expenses 
163.19 	must be paid by the participating counties.

163.20 	Sec. 85. Minnesota Statutes 2016, section 473.446, subdivision 2, is amended to read:
163.21 		Subd. 2.Transit taxing district. The metropolitan transit taxing district is hereby 
163.22 	designated as that portion of the metropolitan transit area lying within the following named 
163.23 	cities, towns, or unorganized territory within the counties indicated:
163.24 	(a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids, Fridley, 
163.25 	Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;
163.26 	(b) Carver County. Chanhassen, the city of Chaska;
163.27 	(c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale, 
163.28 	Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;
163.29 	(d) Ramsey County. All of the territory within Ramsey County;
163.30 	(e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin, 
163.31 	Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley, Greenwood, 
164.1 	Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis, Minnetonka, Minnetonka 
164.2 	Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield, Robbinsdale, St. Anthony, 
164.3 	St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata, Woodland, the unorganized 
164.4 	territory of Hennepin County;
164.5 	(f) Scott County. Prior Lake, Savage, Shakopee;
164.6 	(g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport, 
164.7 	Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport, Oakdale, 
164.8 	Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury.
164.9 	The Metropolitan Council in its sole discretioncommissioner of transportation may 
164.10 	provide transit service by contract beyond the boundaries of the metropolitan transit taxing 
164.11 	district or to cities and towns within the taxing district which are receiving financial assistance 
164.12 	under section 473.388, upon petition therefor by an interested city, township or political 
164.13 	subdivision within the metropolitan transit area. The Metropolitan Councilcommissioner 
164.14 	of transportation may establish suchthe terms and conditions as it deemsdeemed necessary 
164.15 	and advisable for providing the transit service, including such combination of fares and 
164.16 	direct payments by the petitioner asthat will compensate the council for the full capital and 
164.17 	operating cost of the service and the related administrative activities of the council. The 
164.18 	amount of the levy made by any municipality to pay for the service shall be disregarded 
164.19 	when calculation of levies subject to limitations is made, provided that cities and towns 
164.20 	receiving financial assistance under section 473.388 shall not make a special levy under 
164.21 	this subdivision without having first exhausted the available local transit funds as defined 
164.22 	in section 473.388. The council shallcommissioner is not be obligated to extend service 
164.23 	beyond the boundaries of the taxing district, or to cities and towns within the taxing district 
164.24 	which are receiving financial assistance under section 473.388, under any law or contract 
164.25 	unless or until payment therefor is received.

164.26 	Sec. 86. Minnesota Statutes 2016, section 473.446, subdivision 3, is amended to read:
164.27 		Subd. 3.Certification and collection. Each county treasurer shall collect and make 
164.28 	settlement of the taxes levied under subdivisions 1 and 1a with the treasurer of the council 
164.29 	commissioner of transportation. The levy of transit taxes pursuant to this section shall not 
164.30 	affect the amount or rate of taxes which may be levied by any county or municipality or by 
164.31 	the council for other purposes authorized by law and shall be in addition to any other property 
164.32 	tax authorized by law.

165.1 	Sec. 87. Minnesota Statutes 2016, section 473.446, subdivision 8, is amended to read:
165.2 		Subd. 8.State review. The commissioner of revenue shall certify the council's levy 
165.3 	limitation under this section to the councilMetropolitan Area Transit Board by August 1 
165.4 	of the levy year. The councilboard must certify its proposed property tax levy under this 
165.5 	section to the commissioner of revenue by September 1 of the levy year. The commissioner 
165.6 	of revenue shall annually determine whether the property tax for transit purposes certified 
165.7 	by the council for levy following the adoption of its proposed budgetby the board is within 
165.8 	the levy limitation imposed by subdivisions 1 and 1b. The commissioner shall also annually 
165.9 	determine whether the transit tax imposed on all taxable property within the metropolitan 
165.10 	transit area but outside of the metropolitan transit taxing district is within the levy limitation 
165.11 	imposed by subdivision 1a. The determination must be completed prior to September 10 of 
165.12 	each year. If current information regarding market valuation in any county is not transmitted 
165.13 	to the commissioner in a timely manner, the commissioner may estimate the current market 
165.14 	valuation within that county for purposes of making the calculations.

165.15 	Sec. 88. Minnesota Statutes 2016, section 473.448, is amended to read:
165.16 	473.448 TRANSIT ASSETS EXEMPT FROM TAX BUT MUST PAY 
165.17 	ASSESSMENTS.
165.18 	(a) Notwithstanding any other provision of law to the contrary, the properties, moneys, 
165.19 	and other assets of the councildepartment used for transit operations in the metropolitan 
165.20 	area or for special transportation services in the metropolitan area and all revenues or other 
165.21 	income from the council'sdepartment's transit operations in the metropolitan area or special 
165.22 	transportation services in the metropolitan area are exempt from all taxation, licenses, or 
165.23 	fees imposed by the state or by any county, municipality, political subdivision, taxing district, 
165.24 	or other public agency or body of the state, except to the extent that the property is subject 
165.25 	to the sales and use tax under chapter 297A.
165.26 	(b) Notwithstanding paragraph (a), the council'sdepartment's transit properties are subject 
165.27 	to special assessments levied by a political subdivision for a local improvement in amounts 
165.28 	proportionate to and not exceeding the special benefit received by the properties from the 
165.29 	improvement.

165.30 	Sec. 89. Minnesota Statutes 2016, section 473.449, is amended to read:
165.31 	473.449 ACT EXCLUSIVE.
166.1 	The exercise by the councilcommissioner of the powers provided in sections 473.405
166.2 	to 473.449 shall not be subject to regulation by or the jurisdiction or control of any other 
166.3 	public body or agency, either state, county, or municipal, except as specifically provided 
166.4 	in this chapter.

166.5 	Sec. 90. TRANSFER PROVISIONS.
 166.6 		Subdivision 1.General. The Metropolitan Council's powers and duties related to transit 
166.7 	financing, coordination, and operation are transferred to the commissioner of transportation. 
166.8 	Minnesota Statutes, section 15.039, applies to the transfer of the council's powers, duties, 
166.9 	and assets to the commissioner to the extent practicable.
166.10 		Subd. 2.Legislative proposal. (a) The commissioner of transportation shall prepare 
166.11 	and submit to the legislature by February 1, 2018, proposed legislation to integrate the 
166.12 	department's metropolitan area transit powers and duties with its other transportation powers 
166.13 	and duties.
166.14 	(b) The proposal must include the following elements:
166.15 	(1) the Metropolitan Council transit operations shall become MnDOT Metropolitan 
166.16 	Transit Division (MTD);
166.17 	(2) a dedicated account adequate for MTD transit operations shall be established separate 
166.18 	from road and bridge, greater Minnesota transit, and other transportation department funds 
166.19 	and accounts;
166.20 	(3) MTD must fully advertise publicly owned and operated transit for the metropolitan 
166.21 	area;
166.22 	(4) MTD shall continue to operate and maintain regional fleet buses, trains, and routes 
166.23 	with a process set up to transfer ownership of the regional fleet buses, trains, and 
166.24 	appurtenances to MTD;
166.25 	(5) MCTO Union Local 1005 employees who were absorbed into Metropolitan Council 
166.26 	headquarters shall be given an opportunity to transfer to the new MTD by a process in the 
166.27 	legislative proposal;
166.28 	(6) MCTO Union Local 1005 employees at the time of the transfer from the Metropolitan 
166.29 	Council to MTD shall be transferred to MTD and that the collective bargaining agreement 
166.30 	in effect for Transfer Union Local 1005 at the time of the transfer continue in effect 
166.31 	unchanged; and
167.1 	(7) replacement services, contract services, and similar transit services that use MTD 
167.2 	fare boxes, radio system, transit supervision, police, security, maintenance, mechanical, and 
167.3 	other services may continue to do so if a fee is paid to MTD for the reasonable value of the 
167.4 	services.

167.5 	Sec. 91. APPROPRIATION.
 167.6 	$....... is appropriated in fiscal year 2018 from the general fund to the commissioner of 
167.7 	transportation, for the purposes of this article.

167.8 	Sec. 92.  REPEALER.
 167.9 	Minnesota Statutes 2016, sections 174.22, subdivision 3; 473.167, subdivisions 3 and 
167.10 	4; 473.388, subdivisions 1, 2, 3, 4, 5, and 7; 473.39, subdivision 4; 473.3993, subdivision 
167.11 	4; 473.3999; 473.411, subdivisions 3 and 4; and 473.4461, are repealed.

167.12 	Sec. 93. EFFECTIVE DATE.
 167.13 	Sections 28, 82, and 84 to 86, are effective for taxes levied in 2021, payable in 2022, 
167.14 	and thereafter. Section 35 is effective the day following final enactment. The remainder of 
167.15 	this article is effective July 1, 2021.

167.16 	ARTICLE 9
167.17 	WATER AND SOLID WASTE MANAGEMENT

167.18 	Section 1. [115.651] METROPOLITAN AREA SANITARY SEWER DISTRICT.
167.19 		Subdivision 1.Definition. For the purposes of this section, "Metropolitan Area Sanitary 
167.20 	Sewer District" or "metropolitan district" means a sanitary sewer district as defined in the 
167.21 	meaning of sections 115.61 to 115.67 that encompasses the metropolitan area, as defined 
167.22 	in section 473.121, subdivision 2.
167.23 		Subd. 2.Powers. In addition to the powers and duties enumerated in sections 115.61 to 
167.24 	115.67, the metropolitan district has the powers and duties stated in this section.
167.25 		Subd. 3.Ordinances; penalties. The metropolitan district shall have the power to adopt 
167.26 	ordinances relating to the operation of any interceptors or treatment works operated by it 
167.27 	and may provide penalties for ordinance violations not exceeding the maximum that may 
167.28 	be specified for a misdemeanor. Any rule prescribing a penalty for violation shall be 
167.29 	published at least once in a newspaper having general circulation in the metropolitan area.
168.1 		Subd. 4.Gifts; grants; loans. The metropolitan district may accept gifts, may apply for 
168.2 	and accept grants or loans of money or other property from the United States, the state, or 
168.3 	any person for any of its purposes, including any grant available under the federal Water 
168.4 	Pollution Control Act Amendments of 1972, whether for construction, research or pilot 
168.5 	project implementation; may enter into any agreement required by the grant or loan; and 
168.6 	may hold, use, and dispose of the money or property in accordance with the terms of the 
168.7 	gift, grant, loan, or agreement. The metropolitan district has all powers necessary to comply 
168.8 	with the federal Water Pollution Control Act Amendments of 1972 and any associated grant 
168.9 	offered to it including, but not limited to, the power to enter into contracts with, or to impose 
168.10 	charges upon, persons using the metropolitan disposal system as it shall determine to be 
168.11 	necessary for the recovery of treatment works and interceptor costs paid with federal grant 
168.12 	funds. These costs shall be recovered by local government units on behalf of the metropolitan 
168.13 	district to the greatest extent practicable.
168.14 		Subd. 5.Joint or cooperative action. The metropolitan district may act under the 
168.15 	provisions of section 471.59, or any other appropriate law providing for joint or cooperative 
168.16 	action between government units.
168.17 		Subd. 6.May acquire property. The metropolitan district may acquire, by purchase, 
168.18 	lease, condemnation, gift, or grant, any real or personal property including positive and 
168.19 	negative easements and water and air rights, and it may construct, enlarge, improve, replace, 
168.20 	repair, maintain, and operate any interceptor or treatment works determined to be necessary 
168.21 	or convenient for the collection and disposal of sewage in the metropolitan area. Any local 
168.22 	government unit and the commissioners of transportation and natural resources are authorized 
168.23 	to convey to the metropolitan district any facilities owned or controlled by it, or permit the 
168.24 	metropolitan district to use any facilities owned or controlled by it subject to the rights of 
168.25 	the holders of any bonds issued with respect thereto, with or without compensation, and 
168.26 	without an election or approval by any other government agency. All powers conferred by 
168.27 	this subdivision may be exercised within or without the metropolitan area as may be necessary 
168.28 	for the metropolitan district to exercise its powers or accomplish its purposes. The 
168.29 	metropolitan district may hold property for its purposes and may lease any property not 
168.30 	needed for its purposes, upon the terms and in the manner as it shall deem advisable. Unless 
168.31 	otherwise provided, the right to acquire lands and property rights by condemnation shall be 
168.32 	exercised in accordance with chapter 117 and shall apply to any interest in property owned 
168.33 	by any local government unit, provided that no property devoted to an actual public use at 
168.34 	the time, or held to be devoted to public use within a reasonable time, shall be acquired 
168.35 	unless a court of competent jurisdiction determines that the use proposed by the district is 
169.1 	paramount to that use. Except for property in actual public use, the metropolitan district 
169.2 	may take possession of any property for which condemnation proceedings have been 
169.3 	commenced at any time after the issuance of a court order appointing commissioners for 
169.4 	its condemnation.
169.5 		Subd. 7.Nonfranchise required. The metropolitan district may construct or maintain 
169.6 	its systems or facilities in, along, on, under, over, or through public streets, bridges, viaducts, 
169.7 	and other public rights-of-way without first obtaining a franchise from any local government 
169.8 	unit having jurisdiction over them, but the facilities shall be constructed and maintained in 
169.9 	accordance with the ordinances and resolutions of any government unit relating to 
169.10 	construction, installation, and maintenance of similar facilities in public properties and shall 
169.11 	not obstruct the public use of rights-of-way.
169.12 		Subd. 8.Surplus property. The metropolitan district may sell or otherwise dispose of 
169.13 	any real or personal property acquired by it that is no longer required for accomplishment 
169.14 	of its purposes. The property may be sold in the manner provided by section 469.065, as 
169.15 	far as practical. The metropolitan district may give the notice of sale as it shall deem 
169.16 	appropriate. When the metropolitan district determines that any property or any interceptor 
169.17 	or treatment works that have been acquired from a local government unit without 
169.18 	compensation is no longer required, but is required as a local facility by the government 
169.19 	unit from which it was acquired, the metropolitan district may by resolution transfer it to 
169.20 	the government unit.
169.21 		Subd. 9.Pacts with other governments. The metropolitan district may contract with 
169.22 	the United States or its agency, any state or its agency, or any local government unit, agency, 
169.23 	or subdivision, for the joint use of any facility owned by the metropolitan district or the 
169.24 	entity, for the operation by the entity of any system or facility of the metropolitan district, 
169.25 	or for the performance of any service on the metropolitan district's behalf, on terms agreed 
169.26 	upon by the contracting parties.

169.27 	Sec. 2. [115.652] TOTAL WATERSHED MANAGEMENT.
169.28 	The metropolitan district may enter into agreements with other governmental bodies 
169.29 	and agencies and spend funds to implement total watershed management. "Total watershed 
169.30 	management" means identifying and quantifying at a watershed level the (1) sources of 
169.31 	pollution, both point and nonpoint, (2) causes of conditions that may or may not be a result 
169.32 	of pollution, and (3) means of reducing pollution or alleviating adverse conditions. The 
169.33 	purpose of total watershed management is to achieve the best water quality for waters of 
170.1 	the state receiving the effluent of the metropolitan disposal system for the lowest total costs, 
170.2 	without regard to who will incur those costs.

170.3 	Sec. 3. [115.653] SEWER SERVICE FUNCTION.
170.4 		Subdivision 1.Duty of metropolitan district; existing; new facilities. The metropolitan 
170.5 	district shall assume ownership of all existing interceptors and treatment works that will be 
170.6 	needed for the collection, treatment, and disposal of sewage in the metropolitan area, in the 
170.7 	manner and subject to the conditions prescribed in subdivision 2, and shall thereafter acquire, 
170.8 	construct, equip, operate, and maintain all additional interceptors and treatment works that 
170.9 	will be needed for those purposes. The metropolitan district shall assume ownership of all 
170.10 	treatment works owned by a local government unit if any part of the treatment works will 
170.11 	be needed for the stated purposes.
170.12 		Subd. 2.Method of acquisition; existing debt. The metropolitan district may require 
170.13 	any local government unit to transfer to the metropolitan district all of its rights, titles, and 
170.14 	interest in any interceptors or treatment works, and all necessary appurtenances owned by 
170.15 	the local government unit that will be needed for the purpose stated in subdivision 1. 
170.16 	Appropriate instruments of conveyance for the property shall be executed and delivered to 
170.17 	the metropolitan district by the proper officers of each local government unit concerned. 
170.18 	All persons regularly employed by a local government unit to operate and maintain any 
170.19 	treatment works so transferred to the metropolitan district, on the date on which the transfer 
170.20 	becomes effective, shall be employees of the metropolitan district, in the same manner and 
170.21 	with the same options and rights as are reserved to employees of sanitary districts and joint 
170.22 	boards under subdivision 3. The metropolitan district, upon assuming ownership of 
170.23 	interceptors or treatment works, shall become obligated to pay to the local government unit 
170.24 	amounts sufficient to pay when due all remaining principal of and interest on bonds issued 
170.25 	by the local government unit for the acquisition or betterment of the interceptors or treatment 
170.26 	works taken over. These amounts may be offset against any amount to be paid to the 
170.27 	metropolitan district by the local government unit as provided in section 115.656.
170.28 		Subd. 3.Existing sanitary districts; joint sewer boards. The employees shall perform 
170.29 	duties prescribed by the metropolitan district. All subsequent collections of taxes, special 
170.30 	assessments, or service charges levied or imposed by or for the Metropolitan Council must 
170.31 	be transferred to the metropolitan district. Effective July 1, 2018, employees of the 
170.32 	Metropolitan Council wastewater division are employees of the metropolitan district. The 
170.33 	district shall make the employer's contributions to pension funds of its employees. The 
170.34 	metropolitan district shall succeed to and become vested by action of law with all right, 
171.1 	title, and interest in and to any property, real or personal, owned or operated by the 
171.2 	Metropolitan Council in conjunction with its powers and duties related to wastewater. Prior 
171.3 	to that date, the Metropolitan Council shall execute and deliver to the metropolitan district 
171.4 	all deeds, conveyances, bills of sale, and other documents or instruments required to vest 
171.5 	in the metropolitan district good and marketable title to all real or personal property, provided 
171.6 	that vesting of the title must occur by operation of law and failure to execute and deliver 
171.7 	the documents does not affect the vesting of title in the metropolitan district on the dates 
171.8 	indicated in this subdivision. The metropolitan district shall become obligated to pay or 
171.9 	assume all bonded or other debt and contract obligations incurred by the former Metropolitan 
171.10 	Council wastewater division for the acquisition or betterment of any interceptors or treatment 
171.11 	works.

171.12 	Sec. 4. [115.654] SEWAGE COLLECTION AND DISPOSAL; POWERS.
171.13 		Subdivision 1.Identification of powers. In addition to all other powers conferred upon 
171.14 	or delegated to the metropolitan district, the metropolitan district shall have the powers 
171.15 	specified in this section.
171.16 		Subd. 2.Right to discharge treated sewage. The metropolitan district shall have the 
171.17 	right to discharge the effluent from any treatment works operated by it into any waters of 
171.18 	the state in accordance with any effluent or water quality standards lawfully adopted by the 
171.19 	Pollution Control Agency.
171.20 		Subd. 3.Connections with metropolitan system. The metropolitan district may require 
171.21 	any person or local government unit in the metropolitan area to provide for the discharge 
171.22 	of its sewage, directly or indirectly, into the metropolitan disposal system, or to connect 
171.23 	part or all of any disposal system or part with the metropolitan disposal system wherever 
171.24 	reasonable opportunity is provided; may regulate the manner in which the connections are 
171.25 	made; may require any person or local government unit discharging sewage into the 
171.26 	metropolitan disposal system to provide preliminary treatment; may prohibit the discharge 
171.27 	into the metropolitan disposal system of any substance that it determines will or may be 
171.28 	harmful to the system or any persons operating it; and may require any local government 
171.29 	unit to discontinue the acquisition, betterment, or operation of any facility for its disposal 
171.30 	system wherever adequate service is or will be provided by the metropolitan disposal system.

172.1 	Sec. 5. [115.655] VIOLATION OF WASTEWATER LAW; REMEDIES; 
172.2 	PENALTIES.
172.3 		Subdivision 1.Remedies available. (a) For purposes of this section, "violation" means 
172.4 	any discharge or action by a person that violates sections or rules, standards, variances, 
172.5 	ordinances, limitations, orders, stipulations, agreements, schedules of compliance, or permits 
172.6 	that are issued or adopted by the metropolitan district under sections 115.651 to 115.665.
172.7 	(b) Each violation may be enforced by any one or a combination of the following: 
172.8 	criminal prosecution, civil action, or other appropriate action in accordance with sections 
172.9 	115.651 to 115.665.
172.10 		Subd. 2.Criminal penalties; duties. (a) Any person who commits a violation under 
172.11 	subdivision 1 may be sentenced to imprisonment for not more than 90 days or to payment 
172.12 	of a fine of not more than $1,000, or both.
172.13 	(b) County attorneys, sheriffs and other peace officers, and other officers authorized to 
172.14 	enforce criminal laws shall take all action necessary to prosecute and punish violations.
172.15 		Subd. 3.Civil penalties. A violation is subject to a penalty payable to the state, in an 
172.16 	amount to be determined by the court, of not more than $1,000 per day of violation. The 
172.17 	civil penalty may be recovered by a civil action brought by the metropolitan district in the 
172.18 	name of the state.

172.19 	Sec. 6. [115.656] ALLOCATION OF COSTS.
172.20 		Subdivision 1.Allocation method. Except as provided in subdivision 2, the estimated 
172.21 	costs of operation, maintenance, and debt service of the metropolitan disposal system to be 
172.22 	paid by the metropolitan district in each fiscal year, and the costs of acquisition and 
172.23 	betterment of the system that are to be paid during the year from funds other than bond 
172.24 	proceeds, including all expenses incurred by the metropolitan district pursuant to sections 
172.25 	115.653 to 115.665, are referred to in this section as current costs and shall be allocated 
172.26 	among and paid by all local government units that will discharge sewage, directly or 
172.27 	indirectly, into the metropolitan disposal system during the budget year according to an 
172.28 	allocation method determined by the metropolitan district. The allocated costs may include 
172.29 	an amount for a reserve or contingency fund and an amount for cash flow management. 
172.30 	The cash-flow management fund so established must not exceed five percent of the 
172.31 	metropolitan district's total waste control operating budget.
172.32 		Subd. 2.Allocation of treatment; interceptor costs; reserved capacity. (a) In preparing 
172.33 	each budget, the metropolitan district shall estimate the current costs of acquisition, 
173.1 	betterment, and debt service of the treatment works in the metropolitan disposal system that 
173.2 	will not be used to total capacity during the budget year and the percentage of capacity that 
173.3 	will not be used, and shall deduct the same percentage of the treatment works costs from 
173.4 	the current costs allocated under subdivision 1. The metropolitan district shall also estimate 
173.5 	the current costs of acquisition, betterment, and debt service of the interceptors in the 
173.6 	metropolitan disposal system that will not be used to total capacity during the budget year, 
173.7 	shall estimate the percentage of the total capacity that will not be used, and shall deduct the 
173.8 	same percentage of interceptor costs from the current costs allocated under subdivision 1. 
173.9 	The total amount so deducted with respect to all treatment works and interceptors in the 
173.10 	system shall be allocated among and paid by the respective local government units in the 
173.11 	metropolitan area through a metropolitan sewer availability charge for each new connection 
173.12 	or increase in capacity demand to the metropolitan disposal system within each local 
173.13 	government unit. Amounts collected through the metropolitan sewer availability charge 
173.14 	(SAC) must be deposited in the metropolitan district's wastewater reserve capacity fund. 
173.15 	Each fiscal year, an amount from the wastewater reserve capacity fund shall be transferred 
173.16 	to the wastewater operating fund for the reserved capacity costs described in this paragraph. 
173.17 	For the purposes of this subdivision, the amount transferred from the wastewater reserve 
173.18 	capacity fund to the wastewater operating fund shall be referred to as the "SAC transfer 
173.19 	amount."
173.20 	(b) If, after appropriate study and a public hearing, the metropolitan district determines 
173.21 	for the next fiscal year that a reduction of the SAC transfer amount is necessary or desirable 
173.22 	to ensure adequate funds remain in the wastewater reserve capacity fund, based on a goal 
173.23 	of maintaining at least the next year's estimated SAC transfer amount in the wastewater 
173.24 	reserve capacity fund, the metropolitan district may reduce the SAC transfer amount for 
173.25 	that fiscal year. If the metropolitan district reduces the SAC transfer amount for the next 
173.26 	fiscal year, the metropolitan district must then increase the metropolitan sewer availability 
173.27 	charge by an amount not less than the greater of six percent or the annual percentage change 
173.28 	in the Consumer Price Index for the metropolitan region for the previous year plus three 
173.29 	percentage points. For the purposes of this subdivision, any reduction in the SAC transfer 
173.30 	amount shall be referred to as the "SAC transfer deficit." This paragraph expires at the end 
173.31 	of calendar year 2017.
173.32 	(c) The metropolitan district will record on a cumulative basis the total SAC transfer 
173.33 	deficit. In any year that the wastewater reserve capacity fund has a year-end balance of at 
173.34 	least two years' estimated SAC transfer amount, the metropolitan district shall increase the 
173.35 	subsequent annual SAC transfer amount in excess of the amount required by paragraph (a) 
174.1 	with the goal of eliminating the cumulative total SAC transfer deficit. The annual amount 
174.2 	by which the metropolitan district increases the SAC transfer amount shall be determined 
174.3 	by the metropolitan district after appropriate study and a public hearing.
174.4 		Subd. 3.Deferment of payments. The metropolitan district may provide for the 
174.5 	deferment of payment of all or part of the allocated costs that are allocated by the district 
174.6 	to a local government unit in any year pursuant to subdivision 2, repayable at the time or 
174.7 	times as the metropolitan district shall specify, with interest at the approximate average 
174.8 	annual rate borne by metropolitan district bonds outstanding at the time of the deferment, 
174.9 	as determined by the metropolitan district. The deferred costs shall be allocated to and paid 
174.10 	by all local government units in the metropolitan area that will discharge sewage, directly 
174.11 	or indirectly, into the metropolitan disposal system in the budget year for which the deferment 
174.12 	is granted, in the same manner and proportions as costs are allocated under subdivision 1.
174.13 		Subd. 4.Direct charging of industrial users. (a) For the purposes of this subdivision, 
174.14 	the term "industrial discharger" means a recipient of wastewater treatment services that is 
174.15 	required by metropolitan district rules or procedures to have a permit issued by the 
174.16 	metropolitan district in order to discharge sewage to the metropolitan disposal system.
174.17 	(b) The metropolitan district may directly impose on all or any category of industrial 
174.18 	dischargers all or any portion of the costs that would otherwise be allocated among and paid 
174.19 	by local government units under subdivision 1. Any amounts imposed directly on industrial 
174.20 	dischargers by the metropolitan district under this subdivision must be deducted from the 
174.21 	amounts to be allocated among and paid by local government units under subdivision 1, 
174.22 	and any charges imposed by a local government unit for the same purpose are of no further 
174.23 	force and effect from and after the effective date of the metropolitan district's direct charges. 
174.24 	Charges imposed under this subdivision are in addition to any other charges imposed on 
174.25 	industrial dischargers by a local government unit and must be paid by the industrial discharger 
174.26 	at intervals as may be established by the metropolitan district. The metropolitan district may 
174.27 	impose interest charges upon delinquent payments.
174.28 	(c) Charges by the metropolitan district to industrial dischargers under this subdivision 
174.29 	including any interest charges, as well as any other charges or related fees owed by the 
174.30 	industrial discharger pursuant to a discharge permit issued by the metropolitan district for 
174.31 	the subject property, are a charge jointly and severally against the owners, lessees, and 
174.32 	occupants of the property served. The metropolitan district may certify the unpaid amounts 
174.33 	to the appropriate county auditor as a tax for collection as other taxes are collected on the 
174.34 	property served. The proceeds of any tax collected pursuant to the metropolitan district's 
174.35 	certification must be paid by the county treasurer to the metropolitan district when collected. 
175.1 	Certification does not preclude the metropolitan district from recovery of delinquent amounts 
175.2 	and interest under any other available remedy.

175.3 	Sec. 7. [115.6565] 1972 WATER POLLUTION CONTROL ACT; USE CHARGE 
175.4 	SHARES.
175.5 	Each local government unit shall adopt a system of charges for the use and availability 
175.6 	of the metropolitan disposal system that will assure that each recipient of waste treatment 
175.7 	services within or served by the unit will pay its proportionate share of the costs allocated 
175.8 	to the unit by the metropolitan district under section 115.656, as required by the federal 
175.9 	Water Pollution Control Act Amendments of 1972, and any regulations issued pursuant to 
175.10 	it. Each system of charges shall be adopted as soon as possible and shall be submitted to 
175.11 	the metropolitan district. The metropolitan district shall review each system of charges to 
175.12 	determine whether it complies with the federal law and regulations. If it determines that a 
175.13 	system of charges does not comply, the adopting unit shall be notified and shall change its 
175.14 	system to comply, and shall submit the changes to the metropolitan district for review. All 
175.15 	subsequent changes in a system of charges proposed by a local government unit shall also 
175.16 	be submitted to the metropolitan district for review.

175.17 	Sec. 8. [115.657] PAYMENTS TO METROPOLITAN DISTRICT.
175.18 		Subdivision 1.Amounts due metropolitan district, when payable. Charges payable 
175.19 	to the metropolitan district by local government units may be made payable at the times 
175.20 	during each year as the metropolitan district determines, but dates shall be fixed with 
175.21 	reference to the dates on which tax, assessment, and revenue collections become available 
175.22 	to the government units required to pay the charges.
175.23 		Subd. 2.Component municipalities; obligations to metropolitan district. Each 
175.24 	government unit shall pay to the metropolitan district all sums charged to it as provided in 
175.25 	section 115.656, at the times and in the manner determined by the metropolitan district. The 
175.26 	governing body of each government unit shall take all action that may be necessary to 
175.27 	provide the funds required for the payments and to make the same when due.
175.28 		Subd. 3.Powers of government units. To accomplish any duty imposed on it by the 
175.29 	metropolitan district, the governing body of every government unit in the metropolitan area 
175.30 	may exercise the powers granted any municipality by chapters 117, 412, 429, 475, and 
175.31 	sections 115.46, 444.075, and 471.59.
175.32 		Subd. 4.Deficiency tax levies. If the governing body of any local government unit fails 
175.33 	to meet any payment to the metropolitan district when due, the metropolitan district may 
176.1 	certify to the auditor of the county in which the government unit is located the amount 
176.2 	required for payment with interest at six percent per annum. The auditor shall levy and 
176.3 	extend the amount as a tax upon all taxable property in the government unit for the next 
176.4 	calendar year, free from any existing limitations imposed by law or charter. The tax shall 
176.5 	be collected in the same manner as the general taxes of the government unit, and the proceeds, 
176.6 	when collected, shall be paid by the county treasurer to the treasurer of the metropolitan 
176.7 	district and credited to the government unit for which the tax was levied.

176.8 	Sec. 9. [115.658] CONSTRUCTION CONTRACTS SUBJECT TO UNIFORM 
176.9 	MUNICIPAL BID LAW.
176.10 		Subdivision 1.Bids for contracts. All contracts for construction work, or for the purchase 
176.11 	of materials, supplies, or equipment relating to the metropolitan disposal system shall be 
176.12 	made as provided in section 471.345, subdivisions 3 to 6. Contracts subject to section 
176.13 	471.345, subdivision 3, shall be made by the metropolitan district by publishing once in a 
176.14 	legal newspaper or trade paper published in a city of the first class not less than two weeks 
176.15 	before the last day for submission of bids, notice that bids or proposals will be received. 
176.16 	The notice shall state the nature of the work or purchase, the terms and conditions upon 
176.17 	which the contract is to be awarded, and a time and place where bids will be received, 
176.18 	opened, and read publicly. After the bids have been duly received, opened, read publicly, 
176.19 	and recorded, the metropolitan district shall award the contract to the lowest responsible 
176.20 	bidder or it may reject all bids and readvertise. Each contract shall be duly executed in 
176.21 	writing and the party to whom the contract is awarded shall give sufficient bond or security 
176.22 	to the board for the faithful performance of the contract as required by law. The metropolitan 
176.23 	district shall have the right to set qualifications and specifications and to require bids to 
176.24 	meet all the qualifications and specifications before being accepted. If the metropolitan 
176.25 	district by an affirmative vote of two-thirds of its members declares that an emergency exists 
176.26 	requiring the immediate purchase of materials or supplies at a cost in excess of the amount 
176.27 	specified in section 471.345, subdivision 3, or in making emergency repairs, it shall not be 
176.28 	necessary to advertise for bids.
176.29 		Subd. 2.Contracts over $50,000; best value alternative. As an alternative to the 
176.30 	procurement method described in subdivision 1, the metropolitan district may issue a request 
176.31 	for proposals and award the contract to the vendor or contractor offering the best value 
176.32 	under a request for proposals as described in section 16C.28, subdivision 1, paragraph (a), 
176.33 	clause (2), and paragraph (c).
177.1 		Subd. 3.Manager's authority. The manager of wastewater services may, without prior 
177.2 	approval of the metropolitan district and without advertising for bids, enter into any contract 
177.3 	of the type referred to in subdivision 1 that is not in excess of the amount specified in section 
177.4 	471.345, subdivision 3.

177.5 	Sec. 10. [115.659] DEBT OBLIGATIONS.
177.6 		Subdivision 1.Certificates of indebtedness. At any time or times after approval of an 
177.7 	annual budget, and in anticipation of the collection of tax and other revenues appropriated 
177.8 	in the budget, the metropolitan district may, by resolution, authorize the issuance, negotiation, 
177.9 	and sale, in the form and manner and upon the terms as it may determine, of general 
177.10 	obligation certificates of indebtedness in aggregate principal amounts not exceeding 50 
177.11 	percent of the total amount of the appropriations, and maturing not later than April 1 
177.12 	following the close of the budget year. All receipts of tax and other revenues included in 
177.13 	the budget, after the expenditure of appropriated funds, shall be irrevocably appropriated 
177.14 	to a special fund to pay the principal of and the interest on the certificates when due. If the 
177.15 	anticipated revenues are insufficient to pay the certificates and interest when due, the 
177.16 	metropolitan district shall levy a tax in the amount of the deficiency on all taxable property 
177.17 	in the metropolitan area, and shall appropriate this amount to the special fund, to be credited 
177.18 	thereto from the first tax and other revenues received in the following budget year.
177.19 		Subd. 2.Emergency certificates. If, in any budget year, the receipts of tax and other 
177.20 	revenues should from some unforeseen cause become insufficient to pay the metropolitan 
177.21 	district's current wastewater control expenses, or if any calamity or other public emergency 
177.22 	should subject it to the necessity of making extraordinary wastewater control expenditures, 
177.23 	the metropolitan district may make an emergency appropriation of an amount sufficient to 
177.24 	meet the deficiency and may authorize the issuance, negotiation, and sale of certificates of 
177.25 	indebtedness in this amount in the same manner and upon the same conditions as provided 
177.26 	in subdivision 1, except that the metropolitan district shall forthwith levy on all taxable 
177.27 	property in the metropolitan area a tax sufficient to pay the certificates and interest and shall 
177.28 	appropriate all collections of the tax to a special fund created for that purpose. The certificates 
177.29 	may mature not later than April 1 in the year following the year in which the tax is collectible.
177.30 		Subd. 3.General obligation bonds. The metropolitan district may, by resolution, 
177.31 	authorize the issuance of general obligation bonds for the acquisition or betterment of any 
177.32 	interceptors or treatment works determined to be necessary or desirable for the metropolitan 
177.33 	disposal system, or for the refunding of outstanding bonds, certificates of indebtedness, or 
177.34 	judgments. The metropolitan district shall provide for the issuance and sale and for the 
178.1 	security of the bonds in the manner provided in chapter 475 and shall have the same powers 
178.2 	and duties as a municipality issuing bonds under that law, except that no election shall be 
178.3 	required and the net debt limitations in chapter 475 shall not apply to the bonds. The 
178.4 	metropolitan district may also pledge for the payment of the bonds any revenues receivable 
178.5 	under section 115.656.
178.6 		Subd. 4.Revenue bonds. (a) The metropolitan district may, by resolution, authorize the 
178.7 	issuance of revenue bonds for any purpose for which general obligation bonds may be issued 
178.8 	under subdivision 3. The bonds shall be sold, issued, and secured in the manner provided 
178.9 	in chapter 475 for bonds payable solely from revenues, except as otherwise provided in this 
178.10 	subdivision, and the metropolitan district shall have the same powers and duties as a 
178.11 	municipality and the governing body of a municipality in issuing bonds under that chapter. 
178.12 	The bonds shall be payable from and secured by a pledge of all or any part of revenues 
178.13 	receivable under section 115.656; and shall not, and shall state they do not, represent or 
178.14 	constitute a general obligation or debt of the metropolitan district; and shall not be included 
178.15 	in the net debt of any city, county, or other subdivision of the state for the purpose of any 
178.16 	net debt limitation. The proceeds of the bonds may be used to pay credit enhancement fees.
178.17 	(b) The bonds may be secured by a bond resolution, or a trust indenture entered into by 
178.18 	the metropolitan district with a corporate trustee within or outside the state, which shall 
178.19 	define the revenues and bond proceeds pledged for the payment and security of the bonds. 
178.20 	The pledge shall be a valid charge on the revenues received under section 115.656. No 
178.21 	mortgage of or security interest in any tangible real or personal property shall be granted 
178.22 	to the bondholders or the trustee, but they shall have a valid security interest in the revenues 
178.23 	and bond proceeds received by the council and pledged to the payment of the bonds as 
178.24 	against the claims of all persons in tort, contract, or otherwise, irrespective of whether the 
178.25 	parties have notice and without possession or filing as provided in the Uniform Commercial 
178.26 	Code or any other law, subject, however, to the rights of the holders of any general obligation 
178.27 	bonds issued under subdivision 3. In the bond resolution or trust indenture, the metropolitan 
178.28 	district may make covenants as it determines to be reasonable for the protection of the 
178.29 	bondholders, including a covenant to issue general obligation bonds to refund the revenue 
178.30 	bonds if and to the extent required to pay principal and interest on the bonds and to certify 
178.31 	a deficiency tax levy as provided in section 115.657, subdivision 4.
178.32 	(c) Neither the metropolitan district, nor any metropolitan district member, officer, or 
178.33 	employee, nor any agent of the metropolitan district, nor any person executing the bonds 
178.34 	shall be liable personally on the bonds by reason of their issuance. The bonds shall not be 
178.35 	payable from, nor a charge upon, any funds other than the revenues and bond proceeds 
179.1 	pledged to payment of the bonds, nor shall the metropolitan district be subject to liability 
179.2 	or have the power to obligate itself to pay, or to pay the bonds from funds other than the 
179.3 	revenues and bond proceeds pledged, and no holder or holders of bonds shall ever have the 
179.4 	right to compel any exercise of the taxing power of the metropolitan district (except any 
179.5 	deficiency tax levy the metropolitan district covenants to certify under section 115.657, 
179.6 	subdivision 4) or any other public body, to the payment of principal of or interest on the 
179.7 	bonds, nor to enforce payment against any property of the metropolitan district or other 
179.8 	public body other than that expressly pledged for payment.

179.9 	Sec. 11. [115.661] DEPOSITORIES.
179.10 	The metropolitan district shall, from time to time, designate one or more national or 
179.11 	state banks, or trust companies authorized to do a banking business, as official depositories 
179.12 	for money of the metropolitan district, and shall require the treasurer to deposit all or a part 
179.13 	of the money in the designated institutions. The designation shall be in writing and shall 
179.14 	set forth all the terms and conditions upon which the deposits are made. The designation 
179.15 	shall be signed by the chair and treasurer, and made a part of the minutes of the metropolitan 
179.16 	district. Any bank or trust company so designated shall qualify as a depository by furnishing 
179.17 	a corporate surety bond or collateral in the amounts required by section 118A.03. However, 
179.18 	no bond or collateral shall be required to secure any deposit insofar as it is insured under 
179.19 	federal law.

179.20 	Sec. 12. [115.662] MONEY, ACCOUNTS, AND INVESTMENTS.
179.21 		Subdivision 1.Disposed of as budgeted; pledges. All money from wastewater control 
179.22 	operations received by the metropolitan district shall be deposited or invested by the treasurer 
179.23 	and disposed of as the metropolitan district may direct in accordance with its waste control 
179.24 	budget, provided that any money that has been pledged or dedicated by the metropolitan 
179.25 	district to the payment of obligations or interest or associated expenses or for any other 
179.26 	specific purpose authorized by law shall be paid by the treasurer into the fund to which it 
179.27 	has been pledged.
179.28 		Subd. 2.Accounts. The metropolitan district's treasurer shall establish funds and accounts 
179.29 	that may be necessary or convenient to handle the receipts and disbursements of the 
179.30 	metropolitan district in an orderly fashion.
179.31 		Subd. 3.Where to deposit; how to invest. Money in the funds and accounts may be 
179.32 	deposited in the official depositories of the metropolitan district or invested as provided in 
179.33 	this subdivision. The amount not currently needed or required by law to be kept in cash on 
180.1 	deposit may be invested in obligations authorized for the investment of public funds by 
180.2 	section 118A.04. Money may also be held under certificates of deposit issued by any official 
180.3 	depository of the metropolitan district.
180.4 		Subd. 4.Bond proceeds. The use of proceeds of all bonds issued by the metropolitan 
180.5 	district for the acquisition and betterment of interceptors or treatment works, and the use, 
180.6 	other than investment, of all money in any sinking fund or funds of the metropolitan district, 
180.7 	shall be governed by the provisions of chapter 475 and the provisions of resolutions 
180.8 	authorizing the issuance of bonds.

180.9 	Sec. 13. [115.663] PROPERTY EXEMPT FROM TAXATION.
180.10 	Any properties, real or personal, owned, leased, controlled, used, or occupied by the 
180.11 	metropolitan district for any purpose referred to in Minnesota Statutes 1984, section 473.502, 
180.12 	are declared to be acquired, owned, leased, controlled, used, and occupied for public, 
180.13 	governmental, and municipal purposes, and shall be exempt from taxation by the state or 
180.14 	any political subdivision of the state, except to the extent that the property is subject to the 
180.15 	sales and use tax under chapter 297A, provided that the properties shall be subject to special 
180.16 	assessments levied by a political subdivision for a local improvement in amounts 
180.17 	proportionate to and not exceeding the special benefit received by the properties from the 
180.18 	improvement. No possible use of the properties in any manner different from their use as 
180.19 	part of the metropolitan disposal system at the time shall be considered in determining the 
180.20 	special benefit received by the properties. All the assessments shall be subject to final 
180.21 	confirmation by the metropolitan district, whose determination of the benefits shall be 
180.22 	conclusive upon the political subdivision levying the assessment.

180.23 	Sec. 14. [115.664] TAX LEVIES.
180.24 	The metropolitan district shall have power to levy taxes for debt service of the 
180.25 	metropolitan disposal system upon all taxable property within the metropolitan area, without 
180.26 	limitation of rate or amount and without affecting the amount or rate of taxes that may be 
180.27 	levied by the metropolitan district for other purposes or by any local government unit in the 
180.28 	area. The metropolitan district shall also have power to levy taxes as provided in section 
180.29 	115.657. Each of the county auditors shall annually assess and extend upon the tax rolls in 
180.30 	the auditor's county the portion of the taxes levied by the metropolitan district in each year 
180.31 	that is certified to the auditor by the metropolitan district. Each county treasurer shall collect 
180.32 	and make settlement of the taxes with the metropolitan district in the same manner as with 
180.33 	other political subdivisions.

181.1 	Sec. 15. [115.665] RELATION TO EXISTING LAWS.
181.2 	The provisions of sections 115.653 to 115.67 shall be given full effect notwithstanding 
181.3 	any other law. The powers conferred on the metropolitan district under sections 115.653 to 
181.4 	115.67 shall in no way diminish or supersede the powers conferred on the Pollution Control 
181.5 	Agency by chapters 115 and 116.

181.6 	Sec. 16. [115.666] SEVERABILITY.
181.7 	If any provision of sections 115.61 to 115.67 or its application to any person or 
181.8 	circumstances is held to be invalid, the invalidity shall not affect other provisions or 
181.9 	applications of sections 115.61 to 115.67, which can be given effect without the invalid 
181.10 	provision or application, and to this end the provisions of sections 115.61 to 115.67 and 
181.11 	their various applications are declared to be severable.

181.12 	Sec. 17. Minnesota Statutes 2016, section 115.741, subdivision 2, is amended to read:
181.13 		Subd. 2.Geographic representation. At least one of the water supply system operators 
181.14 	and at least one of the wastewater treatment facility operators must be from outside the 
181.15 	seven-county metropolitan area and one wastewater operator must come from the 
181.16 	Metropolitan Council seven-county metropolitan area.

181.17 	Sec. 18. Minnesota Statutes 2016, section 115A.151, is amended to read:
181.18 	115A.151 RECYCLING REQUIREMENTS; PUBLIC ENTITIES; COMMERCIAL 
181.19 	BUILDINGS; SPORTS FACILITIES.
181.20 	(a) A public entity, the owner of a sports facility, and an owner of a commercial building 
181.21 	shall:
181.22 	(1) ensure that facilities under its control, from which mixed municipal solid waste is 
181.23 	collected, also collect at least three recyclable materials, such as, but not limited to, paper, 
181.24 	glass, plastic, and metal; and
181.25 	(2) transfer all recyclable materials collected to a recycler.
181.26 	(b) For the purposes of this section:
181.27 	(1) "public entity" means the state, an office, agency, or institution of the state, the 
181.28 	Metropolitan Council, a metropolitan agency, the Metropolitan Mosquito Control 
181.29 	Commission, the legislature, the courts, a county, a statutory or home rule charter city, a 
181.30 	town, a school district, a special taxing district, or any entity that receives an appropriation 
181.31 	from the state for a capital improvement project after August 1, 2002;
182.1 	(2) "metropolitan agency" and "Metropolitan Council" have has the meanings meaning
182.2 	given them in section 473.121;
182.3 	(3) "Metropolitan Mosquito Control Commission" means the commission created in 
182.4 	section 473.702;
182.5 	(4) "commercial building" means a building that:
182.6 	(i) is located in a metropolitan county, as defined in section 473.121;
182.7 	(ii) contains a business classified in sectors 42 to 81 under the North American Industrial 
182.8 	Classification System; and
182.9 	(iii) contracts for four cubic yards or more per week of solid waste collection; and
182.10 	(5) "sports facility" means a professional or collegiate sports facility at which competitions 
182.11 	take place before a public audience.

182.12 	Sec. 19. Minnesota Statutes 2016, section 115A.471, is amended to read:
182.13 	115A.471 PUBLIC ENTITIES; MANAGEMENT OF SOLID WASTE.
182.14 	(a) Prior to entering into or approving a contract for the management of mixed municipal 
182.15 	solid waste which that would manage the waste using a waste management practice that is 
182.16 	ranked lower on the list of preferred waste management practices in section 115A.02, 
182.17 	paragraph (b), than the waste management practice selected for such waste in the county 
182.18 	plan for the county in which the waste was generated, a public entity must:
182.19 	(1) determine the potential liability to the public entity and its taxpayers for managing 
182.20 	the waste in this manner;
182.21 	(2) develop and implement a plan for managing the potential liability; and
182.22 	(3) submit the information from clauses (1) and (2) to the agency.
182.23 	(b) For the purpose of this subdivision, "public entity" means the state; an office, agency, 
182.24 	or institution of the state; the Metropolitan Council; a metropolitan agency; the Metropolitan 
182.25 	Mosquito Control District; the legislature; the courts; a county; a statutory or home rule 
182.26 	charter city; a town; a school district; another special taxing district; or any other general 
182.27 	or special purpose unit of government in the state.

182.28 	Sec. 20. Minnesota Statutes 2016, section 115A.52, is amended to read:
182.29 	115A.52 TECHNICAL ASSISTANCE FOR PROJECTS.
183.1 	The commissioner shall ensure the delivery of technical assistance for projects eligible 
183.2 	under the program. The commissioner may contract or issue grants for the delivery of 
183.3 	technical assistance by any state or federal agency, a regional development commission, 
183.4 	the Metropolitan Council, or private consultants and may use program funds to reimburse 
183.5 	the agency, commission, council, or consultants. The commissioner shall prepare and publish 
183.6 	an inventory of sources of technical assistance, including studies, publications, agencies, 
183.7 	and persons available. The commissioner shall ensure statewide benefit from projects assisted 
183.8 	under the program by developing exchange and training programs for local officials and 
183.9 	employees and by using the experience gained in projects to provide technical assistance 
183.10 	and education for other solid waste management projects in the state.

183.11 	Sec. 21. Minnesota Statutes 2016, section 116.16, subdivision 2, is amended to read:
183.12 		Subd. 2.Definitions. In this section and sections 116.17 and 116.18:
183.13 	(1) agency means the Minnesota Pollution Control Agency created by this chapter;
183.14 	(2) municipality means any county, city, town, the metropolitan council, or an Indian 
183.15 	tribe or an authorized Indian tribal organization, and any other governmental subdivision 
183.16 	of the state responsible by law for the prevention, control, and abatement of water pollution 
183.17 	in any area of the state;
183.18 	(3) water pollution control program means the Minnesota state water pollution control 
183.19 	program created by subdivision 1;
183.20 	(4) bond account means the Minnesota state water pollution control bond account created 
183.21 	in the state bond fund by section 116.17, subdivision 4;
183.22 	(5) terms defined in section 115.01 have the meanings therein given them;
183.23 	(6) the eligible cost of any municipal project, except as otherwise provided in clause 
183.24 	(7), includes (a) preliminary planning to determine the economic, engineering, and 
183.25 	environmental feasibility of the project; (b) engineering, architectural, legal, fiscal, economic, 
183.26 	sociological, project administrative costs of the agency and the municipality, and other 
183.27 	investigations and studies; (c) surveys, designs, plans, working drawings, specifications, 
183.28 	procedures, and other actions necessary to the planning, design, and construction of the 
183.29 	project; (d) erection, building, acquisition, alteration, remodeling, improvement, and 
183.30 	extension of disposal systems; (e) inspection and supervision of construction; and (f) all 
183.31 	other expenses of the kinds enumerated in section 475.65;
183.32 	(7) for state grants under the state independent grants program, the eligible cost includes 
183.33 	the acquisition of land for stabilization ponds, the construction of collector sewers for totally 
184.1 	unsewered statutory and home rule charter cities and towns described under section 368.01, 
184.2 	subdivision 1 or 1a, that are in existence on January 1, 1985, and the provision of reserve 
184.3 	capacity sufficient to serve the reasonable needs of the municipality for 20 years in the case 
184.4 	of treatment works and 40 years in the case of sewer systems. For state grants under the 
184.5 	state independent grants program, the eligible cost does not include the provision of service 
184.6 	to seasonal homes, or cost increases from contingencies that exceed three percent of as-bid 
184.7 	costs or cost increases from unanticipated site conditions that exceed an additional two 
184.8 	percent of as-bid costs;
184.9 	(8) authority means the Minnesota Public Facilities Authority established in section 
184.10 	446A.03.

184.11 	Sec. 22. Minnesota Statutes 2016, section 116.182, subdivision 1, is amended to read:
184.12 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in this 
184.13 	subdivision have the meanings given them.
184.14 	(b) "Agency" means the Pollution Control Agency.
184.15 	(c) "Authority" means the Public Facilities Authority established in section 446A.03.
184.16 	(d) "Commissioner" means the commissioner of the Pollution Control Agency.
184.17 	(e) "Essential project components" means those components of a wastewater disposal 
184.18 	system that are necessary to convey or treat a municipality's existing wastewater flows and 
184.19 	loadings.
184.20 	(f) "Municipality" means a county, home rule charter or statutory city, town, the 
184.21 	Metropolitan Council, an Indian tribe or an authorized Indian tribal organization; or any 
184.22 	other governmental subdivision of the state responsible by law for the prevention, control, 
184.23 	and abatement of water pollution in any area of the state.
184.24 	(g) "Outstanding international resource value waters" are the surface waters of the state 
184.25 	in the Lake Superior Basin, other than Class 7 waters and those waters designated as 
184.26 	outstanding resource value waters.
184.27 	(h) "Outstanding resource value waters" are those that have high water quality, wilderness 
184.28 	characteristics, unique scientific or ecological significance, exceptional recreation value, 
184.29 	or other special qualities that warrant special protection.

185.1 	Sec. 23. Minnesota Statutes 2016, section 116D.04, subdivision 1a, is amended to read:
185.2 		Subd. 1a.Definitions. For the purposes of this chapter, the following terms have the 
185.3 	meanings given to them in this subdivision.
185.4 	(a) "Natural resources" has the meaning given it in section 116B.02, subdivision 4.
185.5 	(b) "Pollution, impairment or destruction" has the meaning given it in section 116B.02, 
185.6 	subdivision 5.
185.7 	(c) "Environmental assessment worksheet" means a brief document which that is designed 
185.8 	to set out the basic facts necessary to determine whether an environmental impact statement 
185.9 	is required for a proposed action.
185.10 	(d) "Governmental action" means activities, including projects wholly or partially 
185.11 	conducted, permitted, assisted, financed, regulated, or approved by units of government 
185.12 	including the federal government.
185.13 	(e) "Governmental unit" means any state agency and any general or special purpose unit 
185.14 	of government in the state including, but not limited to, watershed districts organized under 
185.15 	chapter 103D, counties, towns, cities, port authorities, housing authorities, and economic 
185.16 	development authorities established under sections 469.090 to 469.108, but not including 
185.17 	courts, school districts, Iron Range resources and rehabilitation, and regional development 
185.18 	commissions other than the Metropolitan Council.

185.19 	Sec. 24. Minnesota Statutes 2016, section 116G.03, subdivision 5, is amended to read:
185.20 		Subd. 5.Regional development commission. "Regional development commission" 
185.21 	means any regional development commission created pursuant to sections 462.381 to 462.396 
185.22 	and the Metropolitan Council created by chapter 473.

185.23 	Sec. 25. Minnesota Statutes 2016, section 116G.15, subdivision 2, is amended to read:
185.24 		Subd. 2.Administration; duties. (a) The commissioner of natural resources, after 
185.25 	consultation with affected local units of government within the Mississippi River corridor 
185.26 	critical area, may adopt rules under chapter 14 as are necessary for the administration of 
185.27 	the Mississippi River corridor critical area program. Duties of the Environmental Quality 
185.28 	Council or the Environmental Quality Board referenced in this chapter, related rules, and 
185.29 	the governor's Executive Order No. 79-19, published in the State Register on March 12, 
185.30 	1979, that are related to the Mississippi River corridor critical area shall be the duties of the 
185.31 	commissioner. All rules adopted by the board pursuant to these duties remain in effect and 
185.32 	shall be enforced until amended or repealed by the commissioner in accordance with law. 
186.1 	The commissioner shall work in consultation with the United States Army Corps of 
186.2 	Engineers, the National Park Service, the Metropolitan Council, other agencies, and local 
186.3 	units of government to ensure that the Mississippi River corridor critical area is managed 
186.4 	as a multipurpose resource in a way that:
186.5 	(1) conserves the scenic, environmental, recreational, mineral, economic, cultural, and 
186.6 	historic resources and functions of the river corridor;
186.7 	(2) maintains the river channel for transportation by providing and maintaining barging 
186.8 	and fleeting areas in appropriate locations consistent with the character of the Mississippi 
186.9 	River and riverfront;
186.10 	(3) provides for the continuation, development, and redevelopment of a variety of urban 
186.11 	uses, including industrial and commercial uses, and recreational and residential uses, where 
186.12 	appropriate, within the Mississippi River corridor;
186.13 	(4) utilizes certain reaches of the river as a source of water supply and as a receiving 
186.14 	water for properly treated sewage, storm water, and industrial waste effluents; and
186.15 	(5) protects and preserves the biological and ecological functions of the corridor.
186.16 	(b) The Metropolitan Council shall incorporate the standards developed under this section 
186.17 	into its planning and shall work with local units of government and the commissioner to 
186.18 	ensure the standards are being adopted and implemented appropriately.
186.19 	(c) (b) The rules must be consistent with residential nonconformity provisions under 
186.20 	sections 394.36 and 462.357.

186.21 	Sec. 26. Minnesota Statutes 2016, section 116G.15, subdivision 5, is amended to read:
186.22 		Subd. 5.Application. The standards established under this section shall be used:
186.23 	(1) by local units of government when preparing or updating plans or modifying 
186.24 	regulations;
186.25 	(2) by state and regional agencies for permit regulation and in developing plans within 
186.26 	their jurisdiction; and
186.27 	(3) by the Metropolitan Council for reviewing plans and regulations; and
186.28 	(4) (3) by the commissioner when approving plans and regulations, and reviewing 
186.29 	development permit applications.

187.1 	Sec. 27. Minnesota Statutes 2016, section 116J.401, subdivision 2, is amended to read:
187.2 		Subd. 2.Duties; authorizations; limitations. (a) The commissioner of employment 
187.3 	and economic development shall:
187.4 	(1) provide regional development commissions, the Metropolitan Council, and units of 
187.5 	local government with information, technical assistance, training, and advice on using 
187.6 	federal and state programs;
187.7 	(2) receive and administer the Small Cities Community Development Block Grant 
187.8 	Program authorized by Congress under the Housing and Community Development Act of 
187.9 	1974, as amended;
187.10 	(3) receive and administer the section 107 technical assistance program grants authorized 
187.11 	by Congress under the Housing and Community Development Act of 1974, as amended;
187.12 	(4) receive, administer, and supervise other state and federal grants and grant programs 
187.13 	for planning, community affairs, community development purposes, employment and 
187.14 	training services, and other state and federal programs assigned to the department by law 
187.15 	or by the governor in accordance with section 4.07;
187.16 	(5) receive applications for state and federal grants and grant programs for planning, 
187.17 	community affairs, and community development purposes, and other state and federal 
187.18 	programs assigned to the department by law or by the governor in accordance with section 
187.19 	4.07;
187.20 	(6) act as the agent of, and cooperate with, the federal government in matters of mutual 
187.21 	concern, including the administration of any federal funds granted to the state to aid in the 
187.22 	performance of functions of the commissioner;
187.23 	(7) provide consistent, integrated employment and training services across the state;
187.24 	(8) administer the Wagner-Peyser Act, the Workforce Investment Act, and other federal 
187.25 	employment and training programs;
187.26 	(9) establish the standards for all employment and training services administered under 
187.27 	this chapter and chapters 116L, 248, 268, and 268A;
187.28 	(10) administer the aspects of the Minnesota family investment program, general 
187.29 	assistance, and food stamps that relate to employment and training services, subject to the 
187.30 	contract under section 116L.86, subdivision 1;
187.31 	(11) obtain reports from local service units and service providers for the purpose of 
187.32 	evaluating the performance of employment and training services;
188.1 	(12) as requested, certify employment and training services, and decertify services that 
188.2 	fail to comply with performance criteria according to standards established by the 
188.3 	commissioner;
188.4 	(13) develop standards for the contents and structure of the local service unit plans and 
188.5 	plans for Indian tribe employment and training services, review and comment on those 
188.6 	plans, and approve or disapprove the plans;
188.7 	(14) supervise the county boards of commissioners, local service units, and any other 
188.8 	units of government designated in federal or state law as responsible for employment and 
188.9 	training programs;
188.10 	(15) establish administrative standards and payment conditions for providers of 
188.11 	employment and training services;
188.12 	(16) enter into agreements with Indian tribes as necessary to provide employment and 
188.13 	training services as appropriate funds become available;
188.14 	(17) cooperate with the federal government and its employment and training agencies 
188.15 	in any reasonable manner as necessary to qualify for federal aid for employment and training 
188.16 	services and money;
188.17 	(18) administer and supervise all forms of unemployment insurance provided for under 
188.18 	federal and state laws;
188.19 	(19) provide current state and substate labor market information and forecasts, in 
188.20 	cooperation with other agencies;
188.21 	(20) require all general employment and training programs that receive state funds to 
188.22 	make available information about opportunities for women in nontraditional careers in the 
188.23 	trades and technical occupations;
188.24 	(21) consult with the Rehabilitation Council for the Blind on matters pertaining to 
188.25 	programs and services for the blind and visually impaired;
188.26 	(22) enter into agreements with other departments of the state and local units of 
188.27 	government as necessary;
188.28 	(23) establish and maintain administrative units necessary to perform administrative 
188.29 	functions common to all divisions of the department;
188.30 	(24) investigate, study, and undertake ways and means of promoting and encouraging 
188.31 	the prosperous development and protection of the legitimate interest and welfare of Minnesota 
188.32 	business, industry, and commerce, within and outside the state;
189.1 	(25) locate markets for manufacturers and processors and aid merchants in locating and 
189.2 	contacting markets;
189.3 	(26) as necessary or useful for the proper execution of the powers and duties of the 
189.4 	commissioner in promoting and developing Minnesota business, industry, and commerce, 
189.5 	both within and outside the state, investigate and study conditions affecting Minnesota 
189.6 	business, industry, and commerce; collect and disseminate information; and engage in 
189.7 	technical studies, scientific investigations, statistical research, and educational activities;
189.8 	(27) plan and develop an effective business information service both for the direct 
189.9 	assistance of business and industry of the state and for the encouragement of business and 
189.10 	industry outside the state to use economic facilities within the state;
189.11 	(28) compile, collect, and develop periodically, or otherwise make available, information 
189.12 	relating to current business conditions;
189.13 	(29) conduct or encourage research designed to further new and more extensive uses of 
189.14 	the natural and other resources of the state and designed to develop new products and 
189.15 	industrial processes;
189.16 	(30) study trends and developments in the industries of the state and analyze the reasons 
189.17 	underlying the trends;
189.18 	(31) study costs and other factors affecting successful operation of businesses within 
189.19 	the state;
189.20 	(32) make recommendations regarding circumstances promoting or hampering business 
189.21 	and industrial development;
189.22 	(33) serve as a clearing house for business and industrial problems of the state;
189.23 	(34) advise small business enterprises regarding improved methods of accounting and 
189.24 	bookkeeping;
189.25 	(35) cooperate with interstate commissions engaged in formulating and promoting the 
189.26 	adoption of interstate compacts and agreements helpful to business, industry, and commerce;
189.27 	(36) cooperate with other state departments and with boards, commissions, and other 
189.28 	state agencies in the preparation and coordination of plans and policies for the development 
189.29 	of the state and for the use and conservation of its resources insofar as the use, conservation, 
189.30 	and development may be appropriately directed or influenced by a state agency;
189.31 	(37) in connection with state, county, and municipal public works projects, assemble 
189.32 	and coordinate information relative to the status, scope, cost, and employment possibilities 
190.1 	and availability of materials, equipment, and labor, and recommend limitations on the public 
190.2 	works;
190.3 	(38) gather current progress information with reference to public and private works 
190.4 	projects of the state and its political subdivisions with reference to conditions of employment;
190.5 	(39) inquire into and report to the governor, when requested by the governor, with respect 
190.6 	to any program of public state improvements and its financing; and request and obtain 
190.7 	information from other state departments or agencies as may be needed for the report;
190.8 	(40) study changes in population and current trends and prepare plans and suggest policies 
190.9 	for the development and conservation of the resources of the state;
190.10 	(41) confer and cooperate with the executive, legislative, or planning authorities of the 
190.11 	United States, neighboring states and provinces, and the counties and municipalities of 
190.12 	neighboring states, for the purpose of bringing about a coordination between the development 
190.13 	of neighboring provinces, states, counties, and municipalities and the development of this 
190.14 	state;
190.15 	(42) generally gather, compile, and make available statistical information relating to 
190.16 	business, trade, commerce, industry, transportation, communication, natural resources, and 
190.17 	other like subjects in this state, with authority to call upon other state departments for 
190.18 	statistical data and results obtained by them and to arrange and compile that statistical 
190.19 	information in a reasonable manner;
190.20 	(43) publish documents and annually convene regional meetings to inform businesses, 
190.21 	local government units, assistance providers, and other interested persons of changes in 
190.22 	state and federal law related to economic development;
190.23 	(44) annually convene conferences of providers of economic development-related 
190.24 	financial and technical assistance for the purposes of exchanging information on economic 
190.25 	development assistance, coordinating economic development activities, and formulating 
190.26 	economic development strategies;
190.27 	(45) provide business with information on the economic benefits of energy conservation 
190.28 	and on the availability of energy conservation assistance;
190.29 	(46) as part of the biennial budget process, prepare performance measures for each 
190.30 	business loan or grant program within the jurisdiction of the commissioner. Measures include 
190.31 	source of funds for each program, number of jobs proposed or promised at the time of 
190.32 	application and the number of jobs created, estimated number of jobs retained, the average 
191.1 	salary and benefits for the jobs resulting from the program, and the number of projects 
191.2 	approved;
191.3 	(47) provide a continuous program of education for business people;
191.4 	(48) publish, disseminate, and distribute information and statistics;
191.5 	(49) promote and encourage the expansion and development of markets for Minnesota 
191.6 	products;
191.7 	(50) promote and encourage the location and development of new businesses in the state 
191.8 	as well as the maintenance and expansion of existing businesses and for that purpose 
191.9 	cooperate with state and local agencies and individuals, both within and outside the state;
191.10 	(51) advertise and disseminate information as to natural resources, desirable locations, 
191.11 	and other advantages for the purpose of attracting businesses to locate in this state;
191.12 	(52) aid the various communities in this state in attracting business to their communities;
191.13 	(53) advise and cooperate with municipal, county, regional, and other planning agencies 
191.14 	and planning groups within the state for the purpose of promoting coordination between 
191.15 	the state and localities as to plans and development in order to maintain a high level of 
191.16 	gainful employment in private profitable production and achieve commensurate advancement 
191.17 	in social and cultural welfare;
191.18 	(54) coordinate the activities of statewide and local planning agencies, correlate 
191.19 	information secured from them and from state departments and disseminate information 
191.20 	and suggestions to the planning agencies;
191.21 	(55) encourage and assist in the organization and functioning of local planning agencies 
191.22 	where none exist; and
191.23 	(56) adopt measures calculated to promote public interest in and understanding of the 
191.24 	problems of planning and, to that end, may publish and distribute copies of any plan or any 
191.25 	report and may employ other means of publicity and education that will give full effect to 
191.26 	the provisions of sections 116J.60 to 116J.63.
191.27 	(b) At the request of any governmental subdivision in paragraph (a), clause (53), the 
191.28 	commissioner may provide planning assistance, which includes but is not limited to surveys, 
191.29 	land use studies, urban renewal plans, technical services and other planning work to any 
191.30 	city or other municipality in the state or perform similar planning work in any county or 
191.31 	metropolitan or regional area in the state. The commissioner must not perform the planning 
191.32 	work with respect to a metropolitan or regional area which is under the jurisdiction for 
192.1 	planning purposes of a county, metropolitan, regional, or joint planning body, except at the 
192.2 	request or with the consent of the respective county, metropolitan, regional, or joint planning 
192.3 	body.
192.4 	(c) The commissioner is authorized to:
192.5 	(1) receive and expend money from municipal, county, regional, and other planning 
192.6 	agencies;
192.7 	(2) accept and disburse grants and other aids for planning purposes from the federal 
192.8 	government and from other public or private sources;
192.9 	(3) utilize money received under clause (2) for the employment of consultants and other 
192.10 	temporary personnel to assist in the supervision or performance of planning work supported 
192.11 	by money other than state-appropriated money;
192.12 	(4) enter into contracts with agencies of the federal government, units of local government 
192.13 	or combinations thereof, and with private persons that are necessary in the performance of 
192.14 	the planning assistance function of the commissioner; and
192.15 	(5) assist any local government unit in filling out application forms for the federal 
192.16 	grants-in-aid.
192.17 	(d) In furtherance of its planning functions, any city or town, however organized, may 
192.18 	expend money and contract with agencies of the federal government, appropriate departments 
192.19 	of state government, other local units of government, and with private persons.

192.20 	Sec. 28. Minnesota Statutes 2016, section 473.121, subdivision 24, is amended to read:
192.21 		Subd. 24.Metropolitan disposal system. "Metropolitan disposal system" means any 
192.22 	or all of the interceptors or treatment works owned or operated by the metropolitan Council
192.23 	district.

192.24 	Sec. 29. Minnesota Statutes 2016, section 473.149, subdivision 3, is amended to read:
192.25 		Subd. 3.Preparation; adoption; and revision. (a) The solid waste policy plan shall be 
192.26 	prepared, adopted, and revised as necessary in accordance with paragraphs (c) to (e), after 
192.27 	consultation with the metropolitan counties.
192.28 	(b) Revisions to the policy plan are exempt from the rulemaking provisions of chapter 
192.29 	14.
192.30 	(c) Before beginning preparation of revisions to the policy plan, the commissioner shall 
192.31 	publish a predrafting notice in the State Register that includes a statement of the subjects 
193.1 	expected to be covered by the revisions, including a summary of the important problems 
193.2 	and issues. The notice must solicit comments from the public and state that the comments 
193.3 	must be received by the commissioner within 45 days of publication of the notice. The 
193.4 	commissioner shall consider the comments in preparing the revisions.
193.5 	(d) After publication of the predrafting notice and before adopting revisions to the policy 
193.6 	plan, the commissioner shall publish a notice in the State Register that:
193.7 	(1) contains a summary of the proposed revisions;
193.8 	(2) invites public comment;
193.9 	(3) lists locations where the proposed revised policy plan can be reviewed and states 
193.10 	that copies of the proposed revised policy plan can also be obtained from the Pollution 
193.11 	Control Agency;
193.12 	(4) states a location for a public meeting on the revisions at a time no earlier than 30 
193.13 	days from the date of publication; and
193.14 	(5) advises the public that they have 30 days from the date of the public meeting in 
193.15 	clause (4) to submit comments on the revisions to the commissioner.
193.16 	(e) At the meeting described in paragraph (d), clause (4), the public shall be given an 
193.17 	opportunity to present their views on the policy plan revisions. The commissioner shall 
193.18 	incorporate any amendments to the proposed revisions that, in the commissioner's view, 
193.19 	will help to carry out the requirements of subdivisions 1, 2d, and 2e. At or before the time 
193.20 	that policy plan revisions are finally adopted, the commissioner shall issue a report that 
193.21 	addresses issues raised in the public comments. The report shall be made available to the 
193.22 	public and mailed to interested persons who have submitted their names and addresses to 
193.23 	the commissioner.
193.24 	(f) The criteria and standards adopted in the policy plan for review of solid waste facility 
193.25 	permits pursuant to section 473.823, subdivision 3; for issuance of certificates of need 
193.26 	pursuant to section 473.823, subdivision 6; and for review of solid waste contracts pursuant 
193.27 	to section 473.813 may be appealed to the Court of Appeals within 30 days after final 
193.28 	adoption of the policy plan. The court may declare the challenged portion of the policy plan 
193.29 	invalid if it violates constitutional provisions, is in excess of statutory authority of the 
193.30 	commissioner, or was adopted without compliance with the procedures in this subdivision. 
193.31 	The review shall be on the record created during the adoption of the policy plan, except that 
193.32 	additional evidence may be included in the record if the court finds that the additional 
194.1 	evidence is material and there were good reasons for failure to present it in the proceedings 
194.2 	described in paragraphs (c) to (e).
194.3 	(g) The Metropolitan Council or A metropolitan county, local government unit, 
194.4 	commission, or person shall not acquire, construct, improve or operate any solid waste 
194.5 	facility in the metropolitan area except in accordance with the plan and section 473.823, 
194.6 	provided that no solid waste facility in use when a plan is adopted shall be discontinued 
194.7 	solely because it is not located in an area designated in the plan as acceptable for the location 
194.8 	of such facilities.

194.9 	Sec. 30.  REPEALER.
 194.10 	Minnesota Statutes 2016, sections 115.66; 115A.03, subdivision 19; 473.1565; 473.501, 
194.11 	subdivisions 1 and 3; 473.504, subdivisions 4, 5, 6, 9, 10, 11, and 12; 473.505; 473.511, 
194.12 	subdivisions 1, 2, 3, and 4; 473.5111; 473.512; 473.513; 473.515; 473.5155; 473.516, 
194.13 	subdivisions 1, 2, 3, and 4; 473.517, subdivisions 1, 3, 6, and 10; 473.519; 473.521; 473.523, 
194.14 	subdivisions 1 and 1a; 473.524; 473.541; 473.542; 473.543, subdivisions 1, 2, 3, and 4; 
194.15 	473.545; 473.547; 473.549; and 473.834, subdivisions 1 and 2, are repealed.

194.16 	Sec. 31. EFFECTIVE DATE.
 194.17 	This article is effective July 1, 2018.

194.18 	ARTICLE 10
194.19 	METROPOLITAN SPORTS FACILITIES AUTHORITY

194.20 	Section 1. Minnesota Statutes 2016, section 473J.25, is amended by adding a subdivision 
194.21 	to read:
194.22 		Subd. 6.Conforming changes. By January 1, 2018, the authority must submit a bill to 
194.23 	the chairs and ranking minority members of the committees in the house of representatives 
194.24 	and the senate with primary jurisdiction over state and local government issues. The bill 
194.25 	must:
194.26 	(1) provide for the transition of duties and obligations of the former commission to the 
194.27 	authority;
194.28 	(2) specify unnecessary, outdated, and redundant statutes to be repealed; and
194.29 	(3) provide for any changes necessary relating to the abolition of the Metropolitan 
194.30 	Council.

195.1 	Sec. 2.  REPEALER.
 195.2 	Minnesota Statutes 2016, section 473J.25, subdivision 5, is repealed.

195.3 	ARTICLE 11
195.4 	CONFORMING AMENDMENTS

195.5 	Section 1. REVISOR'S INSTRUCTION.
 195.6 	The revisor of statutes shall prepare, in an appropriate bill for the 2018 session, 
195.7 	conforming statutory amendments necessitated by this act.

195.8 	ARTICLE 12
195.9 	APPLICATION

195.10 	Section 1. METROPOLITAN COUNTIES.
 195.11 	Unless the context indicates otherwise, this act applies in the counties of Anoka, Carver, 
195.12 	Dakota, Hennepin, Ramsey, Scott, and Washington.

APPENDIX 

Repealed Minnesota Statutes: 17-4683 

3.8841 LEGISLATIVE COMMISSION ON METROPOLITAN GOVERNMENT.Subdivision 1.Established. 
The Legislative Commission on Metropolitan Government is established to oversee the Metropolitan Council's operating and capital budgets, work program, and capital improvement program. 

Subd. 2.Membership. 
The commission consists of four senators appointed by the senate Subcommittee on Committees of the Committee on Rules and Administration, three senators appointed by the senate minority leader, four state representatives appointed by the speaker of the house, and three state representatives appointed by the house minority leader. All members must reside in or represent a portion of the seven-county metropolitan area. The appointing authorities must ensure balanced geographic representation. Each appointing authority must make appointments as soon as possible after the opening of the next regular session of the legislature in each odd-numbered year. 

Subd. 3.Terms; vacancies. 
Members of the commission serve for a two-year term beginning upon appointment and expiring upon appointment of a successor after the opening of the next regular session of the legislature in the odd-numbered year. A vacancy in the membership of the commission must be filled for the unexpired term in a manner that will preserve the representation established by this section. 

Subd. 4.Chair. 
The commission must meet as soon as practicable after members are appointed in each odd-numbered year to elect its chair and other officers as it may determine necessary. A chair serves a two-year term, expiring in the odd-numbered year after a successor is elected. The chair must alternate biennially between the senate and the house of representatives. 

Subd. 5.Compensation. 
Members serve without compensation but may be reimbursed for their reasonable expenses as members of the legislature. 

Subd. 6.Staff. 
Legislative staff must provide administrative and research assistance to the commission. 

Subd. 7.Meetings; procedures. 
The commission meets at the call of the chair. If there is a quorum, the commission may take action by a simple majority vote of commission members present. 

Subd. 8.Powers; duties; Metropolitan Council levy, budget oversight. 
The commission must monitor, review, and make recommendations to the Metropolitan Council and to the legislature for the following calendar year on: 

(1) the tax rate and dollar amount of the Metropolitan Council's property tax levies and any proposed increases in the rate or dollar amount of tax; 

(2) any request for an increase in the debt of the Metropolitan Council; 

(3) the overall work and role of the Metropolitan Council; 

(4) the Metropolitan Council's proposed operating and capital budgets, work program, and capital improvement program; and 

(5) the Metropolitan Council's implementation of the operating and capital budgets, work program, and capital improvement program. 

Subd. 9.Powers; duties; Metropolitan Council appointments oversight. 
The commission must monitor appointments to the Metropolitan Council and may make recommendations on appointments to the nominating committee under section 473.123, subdivision 3, or to the governor before the governor makes the appointments. The commission may also make recommendations to the senate before appointments are presented to the senate for its advice and consent. 

103B.235 LOCAL WATER MANAGEMENT PLANS.Subd. 3a.Review by Metropolitan Council. 
Concurrently with its submission of its local water management plan to the watershed management organization as provided in subdivision 3, each local unit of government shall submit its water management plan to the Metropolitan Council for review and comment by the council. The council shall have 45 days to review and comment upon the local plan or parts of the plan with respect to consistency with the council's comprehensive development guide for the metropolitan area. The council's 45-day review period shall run concurrently with the 60-day review period by the watershed management organization provided in subdivision 3. The Metropolitan Council shall submit its comments to the watershed management organization and shall send a copy of its comments to the local government unit. If the Metropolitan Council fails to complete its review and make comments to the watershed management organization within the 45-day period, the watershed management organization shall complete its review as provided in subdivision 3. 

115.66 SEVERABILITY.
If any provision of sections 115.61 to 115.67 or the application thereof to any person or circumstances is held to be invalid, such invalidity shall not affect other provisions or applications of sections 115.61 to 115.67 which can be given effect without the invalid provision or application, and to this end the provisions of sections 115.61 to 115.67 and the various applications thereof are declared to be severable. 

115A.03 DEFINITIONS.Subd. 19.Metropolitan Council. 
"Metropolitan Council" means the council established in chapter 473. 

174.22 DEFINITIONS.Subd. 3.Metropolitan Council. 
"Metropolitan Council" means the council established by section 473.123. 

238.43 REGIONAL CHANNEL.Subd. 5.Regional channel entity. 
The Cable Communications Board may designate a regional channel entity prior to July 1, 1985. If the Cable Communications Board does not designate an entity by June 30, 1985, the Metropolitan Council shall appoint the governing body of the regional channel entity which must consist of 15 members appointed to three-year terms. In making the initial appointments the Metropolitan Council shall designate one-third of the appointees to serve one-year terms, one-third to serve two-year terms, and one-third to serve three-year terms. In the case of a vacancy the council shall appoint a person to fill the vacancy for the remainder of the unexpired term. The Metropolitan Council shall name three appointees from the recommendations received from the Association of Metropolitan Municipalities and three from the recommendations received from the cable communications companies operating in the metropolitan area. 

297A.992 METROPOLITAN TRANSPORTATION AREA SALES TAX.Subd. 12.Grant awards to Metropolitan Council. 
Any grant award under this section made to the Metropolitan Council must supplement, and must not supplant, operating and capital assistance provided by the state. 

403.27 REVENUE BONDS; OBLIGATIONS.Subdivision 1.Authorization. 
After consulting with the commissioner of management and budget, the council, if requested by a vote of at least two-thirds of all of the members of the Metropolitan Radio Board, may, by resolution, authorize the issuance of its revenue bonds for any of the following purposes to: 

(1) provide funds for regionwide mutual aid and emergency medical services communications; 

(2) provide funds for the elements of the first phase of the regionwide public safety radio communication system that the board determines are of regionwide benefit and support mutual aid and emergency medical services communication including, but not limited to, costs of master controllers of the backbone; 

(3) provide money for the second phase of the public safety radio communication system; 

(4) to the extent money is available after meeting the needs described in clauses (1) to (3), provide money to reimburse local units of government for amounts expended for capital improvements to the first phase system previously paid for by the local government units; or 

(5) refund bonds issued under this section. 

Subd. 2.Procedure. 
The bonds shall be sold, issued, and secured in the manner provided in chapter 475 for bonds payable solely from revenues, except as otherwise provided in sections 403.21 to 403.34 and the council shall have the same powers and duties as a municipality and its governing body in issuing bonds under chapter 475. The bonds may be sold at any price and at public or private sale as determined by the council. 

The bonds shall be payable from and secured by a pledge of the emergency telephone service fee provided in chapter 403 and shall not represent or constitute a general obligation or debt of the council and shall not be included in the net debt of any city, county, or other subdivision of the state for the purpose of any debt limitation. 

Subd. 3.Limitations. 
(a) The principal amount of the bonds issued pursuant to subdivision 1, exclusive of any original issue discount, shall not exceed the amount of $10,000,000 plus the amount the council determines necessary to pay the costs of issuance, fund reserves, debt service, and pay for any bond insurance or other credit enhancement. 

(b) In addition to the amount authorized under paragraph (a), the council may issue bonds under subdivision 1 in a principal amount of $3,306,300, plus the amount the council determines necessary to pay the cost of issuance, fund reserves, debt service, and any bond insurance or other credit enhancement. The proceeds of bonds issued under this paragraph may not be used to finance portable or subscriber radio sets. 

Subd. 4.Security. 
The bonds may be secured by a bond resolution or a trust indenture entered into by the council with a corporate trustee within or outside the state which shall define the fee pledged for the payment and security of the bonds and for payment of all necessary and reasonable debt service expenses until all the bonds referred to in subdivision 1 are fully paid or discharged in accordance with law. The pledge shall be a valid charge on the emergency telephone service fee provided in chapter 403. No mortgage of or security interest in any tangible real or personal property shall be granted to the bondholders or the trustee, but they shall have a valid security interest in the revenues and bond proceeds received by the council and pledged to the payment of the bonds as against the claims of all persons in tort, contract, or otherwise, irrespective of whether the parties have notice and without possession or filing as provided in the Uniform Commercial Code, or any other law, subject however to the rights of the holders of any general obligation bonds issued under section 403.32. In the bond resolution or trust indenture, the council may make covenants as it determines to be reasonable for the protection of the bondholders. 

Neither the council, nor any council member, officer, employee, or agent of the council, nor any person executing the bonds shall be liable personally on the bonds by reason of their issuance. The bonds are not payable from, and are not a charge upon, any funds other than the revenues and bond proceeds pledged to their payment. The council is not subject to any liability on the bonds and has no power to obligate itself to pay or to pay the bonds from funds other than the revenues and bond proceeds pledged. No holder of bonds has the right to compel any exercise of the taxing power of the council, except any deficiency tax levy the council covenants to certify under section 403.31, or any other public body, to the payment of principal of or interest on the bonds. No holder of bonds has the right to enforce payment of principal or interest against any property of the council or other public body other than that expressly pledged for the payment of the bonds. 

403.29 USE OF BOND PROCEEDS.Subd. 4.Use of bond proceeds. 
The use of proceeds of all bonds issued by the Metropolitan Council for the purposes enumerated in section 403.27, subdivision 1, other than investment of all money on hand in any sinking fund or funds of the council, shall be governed by the provisions of chapter 475, the provisions of resolutions authorizing the issuance of the bonds, and by the trust indenture. 

403.32 SALE OF GENERAL OBLIGATION BONDS.Subdivision 1.Amount; purposes. 
The Metropolitan Council may by resolution authorize the issuance of general obligation bonds of the council, in an amount outstanding and undischarged at any time not more than $3,000,000, for which its full faith and credit and taxing powers shall be pledged for the council's share of the first phase. The Metropolitan Council may also issue general obligation bonds to refund outstanding obligations issued under this section. The amount of refunding bonds that may be issued from time to time shall not be subject to the dollar limitation contained in this subdivision nor the refunding bonds be included in computing the amount of bonds that may be issued within that dollar limitation. 

Subd. 2.Sale, terms, security. 
The Metropolitan Council shall sell and issue the bonds in the manner provided in chapter 475 and shall have the same powers and duties as a municipality issuing bonds under that law, except that the approval of a majority of the electors shall not be required and the net debt limitations shall not apply. The bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes required for their payment shall be levied by the council, shall not affect the amount or rate of taxes which may be levied by the council for other purposes, and shall be levied without limitation of rate or amount upon all taxable property in the transit taxing district and transit area as provided in section 473.446, subdivision 1. 

Subd. 3.Temporary loans. 
The Metropolitan Council may, after the authorization of bonds under this section, provide funds immediately required for the purposes of subdivision 1 by effecting temporary loans upon terms as it shall by resolution determine, evidenced by notes due in not exceeding 24 months from their date, payable to the order of the lender or to the bearer, to be repaid with interest from the proceeds of the bonds when issued and delivered to the purchaser. The temporary loans may be made without public advertisement. 

462.382 APPLICATION.
The provisions of sections 462.381 to 462.398 have no application to the Metropolitan Council created by or the region defined by Laws 1967, chapter 896. 

462C.071 SINGLE-FAMILY MORTGAGE BONDS; LIMITATIONS.Subd. 4.Redevelopment area. 
A city located within the metropolitan area must submit to the Metropolitan Council the resolution adopted by the governing body of the city finding an area to be a redevelopment area and a map of the redevelopment area. 

473.121 DEFINITIONS.Subd. 3.Metropolitan Council or council. 
"Metropolitan Council" or "council" means the Metropolitan Council established by section 473.123. 

Subd. 8.Metropolitan significance. 
"Metropolitan significance" means a status determined by the Metropolitan Council pursuant to the rules and procedures established by section 473.173. 

Subd. 12.Metropolitan Parks and Open Space Commission. 
"Metropolitan Parks and Open Space Commission" means the commission established in sections 473.302 to 473.341. 

473.123 METROPOLITAN COUNCIL.Subdivision 1.Creation. 
A Metropolitan Council with jurisdiction in the metropolitan area is established as a public corporation and political subdivision of the state. It shall be under the supervision and control of 17 members, all of whom shall be residents of the metropolitan area. 

Subd. 2a.Terms. 
Following each apportionment of council districts, as provided under subdivision 3a, council members must be appointed from newly drawn districts as provided in subdivision 3a. Each council member, other than the chair, must reside in the council district represented. Each council district must be represented by one member of the council. The terms of members end with the term of the governor, except that all terms expire on the effective date of the next apportionment. A member serves at the pleasure of the governor. A member shall continue to serve the member's district until a successor is appointed and qualified; except that, following each apportionment, the member shall continue to serve at large until the governor appoints 16 council members, one from each of the newly drawn council districts as provided under subdivision 3a, to serve terms as provided under this section. The appointment to the council must be made by the first Monday in March of the year in which the term ends. 

Subd. 3.Membership; appointment; qualifications. 
(a) Sixteen members must be appointed by the governor from districts defined by this section. Each council member must reside in the council district represented. Each council district must be represented by one member of the council. 

(b) In addition to the notice required by section 15.0597, subdivision 4, notice of vacancies and expiration of terms must be published in newspapers of general circulation in the metropolitan area and the appropriate districts. The governing bodies of the statutory and home rule charter cities, counties, and towns having territory in the district for which a member is to be appointed must be notified in writing. The notices must describe the appointments process and invite participation and recommendations on the appointment. 

(c) The governor shall create a nominating committee, composed of seven metropolitan citizens appointed by the governor, to nominate persons for appointment to the council from districts. Three of the committee members must be local elected officials. Following the submission of applications as provided under section 15.0597, subdivision 5, the nominating committee shall conduct public meetings, after appropriate notice, to accept statements from or on behalf of persons who have applied or been nominated for appointment and to allow consultation with and secure the advice of the public and local elected officials. The committee shall hold the meeting on each appointment in the district or in a reasonably convenient and accessible location in the part of the metropolitan area in which the district is located. The committee may consolidate meetings. Following the meetings, the committee shall submit to the governor a list of nominees for each appointment. The governor is not required to appoint from the list. 

(d) Before making an appointment, the governor shall consult with all members of the legislature from the council district for which the member is to be appointed. 

(e) Appointments to the council are subject to the advice and consent of the senate as provided in section 15.066. 

(f) Members of the council must be appointed to reflect fairly the various demographic, political, and other interests in the metropolitan area and the districts. 

(g) Members of the council must be persons knowledgeable about urban and metropolitan affairs. 

(h) Any vacancy in the office of a council member shall immediately be filled for the unexpired term. In filling a vacancy, the governor may forgo the requirements of paragraph (c) if the governor has made appointments in full compliance with the requirements of this subdivision within the preceding 12 months. 

Subd. 3a.Redistricting. 
The legislature shall redraw the boundaries of the council districts after each decennial federal census so that each district has substantially equal population. Redistricting is effective in the year ending in the numeral "3." Within 60 days after a redistricting plan takes effect, the governor shall appoint members from the newly drawn districts to serve terms as provided under subdivision 2a. 

Subd. 3e.District boundaries. 
Metropolitan Council plan MC2013-1A, on file with the Geographical Information Systems Office of the Legislative Coordinating Commission and published on its Web site on April 9, 2013, is adopted and constitutes the redistricting plan required by subdivision 3a. The boundaries of each Metropolitan Council district are as described in that plan. 

Subd. 4.Chair; appointment, officers, selection; duties and compensation. 
(a) The chair of the Metropolitan Council shall be appointed by the governor as the 17th voting member thereof by and with the advice and consent of the senate to serve at the pleasure of the governor to represent the metropolitan area at large. Senate confirmation shall be as provided by section 15.066. 

The chair of the Metropolitan Council shall, if present, preside at meetings of the council, have the primary responsibility for meeting with local elected officials, serve as the principal legislative liaison, present to the governor and the legislature, after council approval, the council's plans for regional governance and operations, serve as the principal spokesperson of the council, and perform other duties assigned by the council or by law. 

(b) The Metropolitan Council shall elect other officers as it deems necessary for the conduct of its affairs for a one-year term. A secretary and treasurer need not be members of the Metropolitan Council. Meeting times and places shall be fixed by the Metropolitan Council and special meetings may be called by a majority of the members of the Metropolitan Council or by the chair. The chair and each Metropolitan Council member shall be reimbursed for actual and necessary expenses. 

(c) Each member of the council shall attend and participate in council meetings and meet regularly with local elected officials and legislative members from the council member's district. Each council member shall serve on at least one division committee for transportation, environment, or community development. 

(d) In the performance of its duties the Metropolitan Council may adopt policies and procedures governing its operation, establish committees, and, when specifically authorized by law, make appointments to other governmental agencies and districts. 

Subd. 8.General counsel. 
The council may appoint a general counsel to serve at the pleasure of the council. 

473.125 REGIONAL ADMINISTRATOR.
The Metropolitan Council shall appoint a regional administrator to serve at the council's pleasure as the principal administrative officer for the Metropolitan Council. The regional administrator shall organize the work of the council staff. The regional administrator shall appoint on the basis of merit and fitness, and discipline and discharge all employees in accordance with the council's personnel policy, except the general counsel, as provided in section 473.123, subdivision 8. The regional administrator must ensure that all policy decisions of the council are carried out. The regional administrator shall attend meetings of the council and may take part in discussions but may not vote. The regional administrator shall recommend to the council for adoption measures deemed necessary for efficient administration of the council, keep the council fully apprised of the financial condition of the council, and prepare and submit an annual budget to the council for approval. The regional administrator shall prepare and submit for approval by the council an administrative code organizing and codifying the policies of the council, and perform other duties as prescribed by the council. The regional administrator may be chosen from among the citizens of the nation at large, and shall be selected on the basis of training and experience in public administration. 

473.127 ADVISORY COMMITTEES.
The Metropolitan Council may establish and appoint persons to advisory committees to assist the Metropolitan Council in the performance of its duties. Members of the advisory committees shall serve without compensation but shall be reimbursed for their reasonable expenses as determined by the Metropolitan Council. 

473.129 POWERS OF METROPOLITAN COUNCIL.Subdivision 1.General powers. 
The Metropolitan Council shall have and exercise all powers which may be necessary or convenient to enable it to perform and carry out the duties and responsibilities now existing or which may hereafter be imposed upon it by law. Such powers include the specific powers enumerated in this section. 

Subd. 2.Employees. 
The Metropolitan Council shall prescribe all terms and conditions for the employment of its employees including, but not limited to, adopting a compensation and classification plan for its employees. Employees of the Metropolitan Council are public employees and are members of the Minnesota State Retirement System. Those employed by a predecessor of the Metropolitan Council and transferred to it may at their option become members of the Minnesota State Retirement System or may continue as members of the public retirement association to which they belonged as employees of the predecessor of the Metropolitan Council. The Metropolitan Council shall make the employer's contributions to pension funds of its employees. 

Subd. 3.Consulting contracts. 
The Metropolitan Council may contract for the services of consultants who perform engineering, legal, or services of a professional nature. Such contracts shall not be subject to the requirements of any law relating to public bidding. 

Subd. 4.Gifts and appropriations. 
The Metropolitan Council may accept gifts, apply for and use grants or loans of money or other property from the United States, the state, or any person for any Metropolitan Council purpose and may enter into agreements required in connection therewith and may hold, use, and dispose of such moneys or property in accordance with the terms of the gift, grant, loan, or agreement relating thereto. 

Subd. 5.Local governmental participation. 
The Metropolitan Council may (1) participate as a party in any proceedings originating under chapter 414, if the proceedings involve the change in a boundary of a governmental unit in the metropolitan area, and (2) conduct studies of the feasibility of annexing, enlarging, or consolidating units in the metropolitan area. 

Subd. 6.On metro agencies. 
 The Metropolitan Council shall appoint from its membership a member to serve with each metropolitan agency. Each member of the Metropolitan Council so appointed on each of such agencies shall serve without a vote. 

Subd. 7.Property. 
The council may acquire, own, hold, use, improve, operate, maintain, lease, exchange, transfer, sell, or otherwise dispose of personal or real property, franchises, easements, or property rights or interests of any kind. 

Subd. 8.Insurance. 
The council may provide for self-insurance or otherwise provide for insurance relating to any of its property, rights, or revenue, workers' compensation, public liability, or any other risk or hazard arising from its activities, and may provide for insuring any of its officers or employees against the risk or hazard at the expense of the council. If the council provides for self-insurance, against its liability and the liability of its officers, employees, and agents for damages resulting from its torts and those of its officers, employees, and agents, including its obligation to pay basic economic loss benefits under sections 65B.41 to 65B.71, it shall be entitled to deduct from damages and basic economic loss benefits all money paid or payable to the persons seeking damages and benefits from all governmental entities providing medical, hospital, and disability benefits except for payments made under the Minnesota family investment program or medical assistance program. 

Subd. 9.Investigations. 
When necessary and proper to the performance of its duties, the council may enter in a reasonable manner upon any premises for the purpose of making any reasonably necessary or proper investigations and examinations. The entry is not a trespass. The council is liable for any actual and consequential loss, injury, or damage from the entry. When necessary and proper to the performance of its duties, the council or its authorized agents may require the production of accounts, books, records, memoranda, correspondence, and other documents and papers of a person receiving financial assistance from the council, may inspect and copy them, and may have access to and may inspect the lands, buildings, facilities, or equipment of the person. 

Subd. 10.Employee health and wellness. 
The council may provide a program for health and wellness services for council employees and provide necessary staff, funds, equipment, and facilities. 

Subd. 11.External use of existing service capacity. 
For purposes of this subdivision, "service capacity" means an existing service or operation carried out by the council as authorized by law, or existing council real or personal property, for which the council on a temporary basis has capacity available for use outside the council. Notwithstanding other law, the council may enter into arrangements to provide service capacity to other governmental entities or the private sector on the terms and conditions it considers appropriate. In providing service capacity, the council: 

(1) may not commit to providing the service capacity for a period in excess of five years; and 

(2) must receive compensation for providing the service capacity in at least an amount sufficient to recover the actual costs of providing the service capacity including, but not limited to, the costs of materials and supplies, employee salaries and benefits, and administrative overhead. 

Subd. 12.Best value procurement alternative. 
(a) Notwithstanding the provisions of section 471.345, the council may award a contract for the purchase of transit vehicles to the vendor or contractor offering the best value under a request for proposals. For the purposes of this subdivision, "transit vehicles" means buses and coaches, commuter rail locomotives and coach cars, light rail vehicles, and paratransit vehicles that are used to provide transit and special transportation service pursuant to sections 473.371 to 473.449. 

(b) For the purposes of this subdivision, "best value" describes a result intended in the acquisition of goods and services described in paragraph (a). Price must be one of the evaluation criteria. Other evaluation criteria may include, but are not limited to, environmental considerations, quality, and vendor or contractor performance. The evaluation criteria must be included in the solicitation document as well as the relative importance of price and other factors. 

473.1293 ENERGY FORWARD PRICING MECHANISMS.Subdivision 1.Definitions. 
The following definitions apply in this section. 

(a) "Energy" means natural gas, heating oil, diesel fuel, or any other energy source, except electric, used in Metropolitan Council operations. 

(b) "Forward pricing mechanism" means either: 

(1) a contract or financial instrument that obligates an entity to buy or sell a specified amount of an energy commodity at a future date and at a set price; or 

(2) an option to buy or sell the contract or financial instrument. 

Subd. 2.Authority provided. 
Notwithstanding any other law to the contrary, the council may use forward pricing mechanisms for budget risk reduction. 

Subd. 3.Conditions. 
(a) Forward pricing transactions made under this section must be made only under the conditions in paragraphs (b), (c), and (d). 

(b) The amount of energy forward priced must not exceed the estimated energy usage for council operations for the period of time covered by the forward pricing mechanism. 

(c) The holding period and expiration date for any forward pricing mechanism must not exceed 24 months from the trade date of the transaction. 

(d) Separate accounts must be established for each operational energy for which forward pricing mechanisms are used under this section. 

Subd. 4.Written policies and procedures. 
Before exercising authority under subdivision 2, the council must have written policies and procedures governing the use of forward pricing mechanisms. 

Subd. 5.Oversight process. 
(a) Before exercising authority under subdivision 2, the governing body of the council must establish an oversight process that provides for review of the council's use of forward pricing mechanisms. 

(b) The process must include: 

(1) internal or external audit reviews; 

(2) quarterly reports to, and review by, an internal investment committee; and 

(3) internal management control. 

473.132 SHORT-TERM INDEBTEDNESS.
The council may issue certificates of indebtedness or capital notes to purchase equipment to be owned and used by the council and having an expected useful life of at least as long as the terms of the certificates or notes. The certificates or notes shall be payable in not more than five years and shall be issued on such terms and in such manner as the council may determine, and for this purpose the council may secure payment of the certificates or notes by resolution or by trust indenture entered into by the council with a corporate trustee within or outside the state, and by a mortgage in the equipment financed. The total principal amount of the notes or certificates issued in a fiscal year should not exceed one-half of one percent of the tax capacity of the metropolitan area for that year. The full faith and credit of the council shall be pledged to the payment of the certificates or notes, and a tax levy shall be made for the payment of the principal and interest on the certificates or notes, in accordance with section 475.61, as in the case of bonds issued by a municipality. The tax levy authorized by this section must be deducted from the amount of taxes the council is otherwise authorized to levy under section 473.249. 

473.1565 METROPOLITAN AREA WATER SUPPLY PLANNING ACTIVITIES; ADVISORY COMMITTEES.Subdivision 1.Planning activities. 
(a) The Metropolitan Council must carry out planning activities addressing the water supply needs of the metropolitan area as defined in section 473.121, subdivision 2. The planning activities must include, at a minimum: 

(1) development and maintenance of a base of technical information needed for sound water supply decisions including surface and groundwater availability analyses, water demand projections, water withdrawal and use impact analyses, modeling, and similar studies; 

(2) development and periodic update of a metropolitan area master water supply plan, prepared in cooperation with and subject to the approval of the policy advisory committee established in this section, that: 

(i) provides guidance for local water supply systems and future regional investments; 

(ii) emphasizes conservation, interjurisdictional cooperation, and long-term sustainability; and 

(iii) addresses the reliability, security, and cost-effectiveness of the metropolitan area water supply system and its local and subregional components; 

(3) recommendations for clarifying the appropriate roles and responsibilities of local, regional, and state government in metropolitan area water supply; 

(4) recommendations for streamlining and consolidating metropolitan area water supply decision-making and approval processes; and 

(5) recommendations for the ongoing and long-term funding of metropolitan area water supply planning activities and capital investments. 

(b) The council must carry out the planning activities in this subdivision in consultation with the Metropolitan Area Water Supply Policy and Technical Advisory Committees established in this section. 

Subd. 2.Policy advisory committee. 
(a) A Metropolitan Area Water Supply Policy Advisory Committee is established to assist the council in its planning activities in subdivision 1. The policy advisory committee has the following membership: 

(1) the commissioner of agriculture or the commissioner's designee; 

(2) the commissioner of health or the commissioner's designee; 

(3) the commissioner of natural resources or the commissioner's designee; 

(4) the commissioner of the Pollution Control Agency or the commissioner's designee; 

(5) two officials of counties that are located in the metropolitan area, appointed by the governor, in consultation with the Association of Minnesota Counties; 

(6) five officials of noncounty local governmental units that are located in the metropolitan area, appointed by the governor, in consultation with the Association of Metropolitan Municipalities; 

(7) the chair of the Metropolitan Council or the chair's designee, who is chair of the advisory committee; 

(8) one official each from the counties of Chisago, Isanti, Sherburne, and Wright, appointed by the governor, in consultation with the Association of Minnesota Counties and the League of Minnesota Cities; and 

(9) a representative of the Saint Paul Regional Water Services, appointed by and serving at the pleasure of the Saint Paul Regional Water Services, and a representative of the Minneapolis Water Department, appointed by and serving at the pleasure of the mayor of the city of Minneapolis. 

A local government unit in each of the seven counties in the metropolitan area and Chisago, Isanti, Sherburne, and Wright Counties must be represented in the 11 appointments made under clauses (5), (6), and (8). 

(b) Members of the advisory committee appointed by the governor serve at the pleasure of the governor. Members of the advisory committee serve without compensation but may be reimbursed for their reasonable expenses as determined by the Metropolitan Council. 

(c) The council must consider the work and recommendations of the policy advisory committee when the council is preparing its regional development framework. 

Subd. 2a.Technical advisory committee. 
A Metropolitan Area Water Supply Technical Advisory Committee is established to inform the policy advisory committee's work by providing scientific and engineering expertise necessary to provide the region an adequate and sustainable water supply. The technical advisory committee consists of 15 members appointed by the policy advisory committee, with the majority of members representing single-city and multicity public water supply systems in the metropolitan area and including experts in: 

(1) water resources analysis and modeling; 

(2) hydrology; and 

(3) the engineering, planning, design, and construction of water systems or water systems finance. 

Members of the technical advisory committee serve at the pleasure of the policy advisory committee, without compensation, but may be reimbursed for their reasonable expenses as determined by the council. 

Subd. 3.Reports to legislature. 
(a) The council must submit reports to the legislature regarding its findings, recommendations, and continuing planning activities under subdivision 1. These reports shall be included in the "Minnesota Water Plan" required in section 103B.151, and five-year interim reports may be provided as necessary. 

(b) By February 15, 2017, and at least every five years thereafter, the policy advisory committee shall report to the council, the Legislative Water Commission, and the chairs and ranking minority members of the house of representatives and senate committees and divisions with jurisdiction over environment and natural resources with the information required under this section. The policy advisory committee's report and recommendations must include information provided by the technical advisory committee. 

473.165 COUNCIL REVIEW; INDEPENDENT COMMISSION, BOARD, AGENCY.
(1) The Metropolitan Council shall review all long-term comprehensive plans of each independent commission, board, or agency prepared for its operation and development within the metropolitan area but only if such plan is determined by the council to have an areawide effect, a multicommunity effect, or to have a substantial effect on metropolitan development. Each plan shall be submitted to the council before any action is taken to place the plan or any part thereof, into effect. 

(2) No action shall be taken to place any plan or any part thereof, into effect until 60 days have lapsed after the date of its submission to the council, or until the council finds and notifies the submitting commission, board, or agency that the plan is consistent with its comprehensive guide for the metropolitan area and the orderly and economic development of the metropolitan area, whichever first occurs. If, within 60 days after the date of submission, the council finds that a plan, or any part thereof, is inconsistent with its comprehensive guide for the metropolitan area or detrimental to the orderly and economic development of the metropolitan area, or any part thereof, it may direct that the operation of the plan, or such part thereof, be indefinitely suspended; provided that the council shall not direct the suspension of any plan or part thereof of any sanitary sewer district operating within the metropolitan area which pertains to the location and construction of a regional sewer plant or plants or the expansion or improvement of the present Minneapolis-St. Paul sanitary district treatment plant. An affected commission, board, or agency may appeal the decision of the Metropolitan Council suspending a plan, or part thereof, to the entire membership of the Metropolitan Council for public hearing. If the Metropolitan Council and the affected commission, board, or agency are unable to agree as to an adjustment of the plan, so that it may receive the council's approval, then a record of the disagreeing positions of the Metropolitan Council and the affected commission, board, or agency shall be made and the Metropolitan Council shall prepare a recommendation in connection therewith for consideration and disposition by the next regular session of the legislature. 

473.167 HIGHWAY PROJECTS.Subd. 3.Tax. 
The council may levy a tax on all taxable property in the metropolitan area, as defined in section 473.121, to provide funds for loans made pursuant to subdivisions 2 and 2a. This tax for the right-of-way acquisition loan fund shall be certified by the council, levied, and collected in the manner provided by section 473.13. The tax shall be in addition to that authorized by section 473.249 and any other law and shall not affect the amount or rate of taxes which may be levied by the council or any metropolitan agency or local governmental unit. The amount of the levy shall be as determined and certified by the council, provided that the tax levied by the Metropolitan Council for the right-of-way acquisition loan fund shall not exceed $2,828,379 for taxes payable in 2004 and $2,828,379 for taxes payable in 2005. The amount of the levy for taxes payable in 2006 and subsequent years shall not exceed the product of (1) the Metropolitan Council's property tax levy limitation under this subdivision for the previous year, multiplied by (2) one plus a percentage equal to the growth in the implicit price deflator as defined in section 275.70, subdivision 2. 

Subd. 4.State review. 
The commissioner of revenue shall certify the council's levy limitation under this section to the council by August 1 of the levy year. The council must certify its proposed property tax levy to the commissioner of revenue by September 1 of the levy year. The commissioner of revenue shall annually determine whether the property tax for the right-of-way acquisition loan fund certified by the Metropolitan Council for levy following the adoption of its proposed budget is within the levy limitation imposed by this section. The determination must be completed prior to September 10 of each year. If current information regarding market valuation in any county is not transmitted to the commissioner in a timely manner, the commissioner may estimate the current market valuation within that county for purposes of making the calculation. 

473.175 REVIEW OF COMPREHENSIVE PLANS.Subdivision 1.For compatibility, conformity. 
The council shall review the comprehensive plans of local governmental units, prepared and submitted pursuant to sections 473.851 to 473.871, to determine their compatibility with each other and conformity with metropolitan system plans. The council shall review and comment on the apparent consistency of the comprehensive plans with adopted plans of the council. The council may require a local governmental unit to modify any comprehensive plan or part thereof if, upon the adoption of findings and a resolution, the council concludes that the plan is more likely than not to have a substantial impact on or contain a substantial departure from metropolitan system plans. A local unit of government may challenge a council action under this subdivision by following the procedures set forth in section 473.866. 

Subd. 2.120-day limit. 
 Within 120 days following receipt of a comprehensive plan of a local governmental unit, unless a time extension is mutually agreed to, the council shall return to the local governmental unit a statement containing its comments and, by resolution, its decision, if any, to require modifications to assure conformance with the metropolitan system plans. 

No action shall be taken by any local governmental unit to place any such comprehensive plan or part thereof into effect until the council has returned the statement to the unit and until the local governmental unit has incorporated any modifications in the plan required by a final decision, order, or judgment made pursuant to section 473.866. If within 120 days, unless a time extension is mutually agreed to, the council fails to complete its written statement the plans shall be deemed approved and may be placed into effect. Any amendment to a plan subsequent to the council's review shall be submitted to and acted upon by the council in the same manner as the original plan. The written statement of the council shall be filed with the plan of the local government unit at all places where the plan is required by law to be kept on file. 

Subd. 3.Enforcement to get conforming plan. 
If a local governmental unit fails to adopt a comprehensive plan in accordance with sections 473.851 to 473.871 or if the council after a public hearing by resolution finds that a plan substantially departs from metropolitan system plans and that the local governmental unit has not adopted a plan with modifications required pursuant to section 473.866 within nine months following a final decision, order, or judgment made pursuant to section 473.866, the council may commence civil proceedings to enforce the provisions of sections 473.851 to 473.871 by appropriate legal action in the district court where the local governmental unit is located. 

473.181 ADDITIONAL COUNCIL REVIEW.Subd. 2.Parks. 
The council shall review local government park master plans pursuant to section 473.313. 

Subd. 5.Airports. 
The council shall review Metropolitan Airports Commission capital projects pursuant to section 473.621, subdivision 6. The plans of the Metropolitan Airports Commission and the development of the metropolitan airports system by the commission shall, as provided in sections 473.611, subdivision 5, and 473.655, be consistent with the development guide of the council. 

473.191 LOCAL PLANNING ASSISTANCE.Subdivision 1.Comprehensive community planning. 
The Metropolitan Council may, at the request of local governmental units, enter into contracts or make other arrangements with local governmental units and others for the provision of services for and assistance with comprehensive community planning. This may include: 

(a) Assistance in the preparation, as a guide for long-range development, of general physical plans with respect to the pattern and intensity of land use and the provision of public facilities together with long-range fiscal plans for such development; 

(b) Programming of capital improvements based on a determination of relative urgency, together with definitive financing plans for the improvements to be constructed in the earlier years of the program; 

(c) Coordination of all related plans of the departments or subdivision of the government concerned; 

(d) Intergovernmental coordination of all related planned activities among the state and local governmental agencies concerned; and 

(e) Preparation of regulatory and administrative measures in support of the foregoing. 

Subd. 2.Water resources. 
The Metropolitan Council may provide technical assistance to cities, counties, and towns to expedite adoption and enforcement of local ordinances under sections 103F.121, 103F.201 to 103F.221, and 473.206 to 473.208. 

473.206 LOCAL ORDINANCES.
Each county, city or town in the metropolitan area shall be provided with standards, criteria and suggested model ordinances and may, after review and comment by the Metropolitan Council, adopt ordinances which provide for the protection of the resources that are the subject of the standards, criteria, and model ordinances. 

473.208 COOPERATION.
In adopting and enforcing the ordinances for which standards and criteria are provided by section 473.206, counties, cities and towns shall consult and cooperate with affected soil and water conservation districts, watershed districts, and lake conservation districts on matters of common concern. 

473.24 POPULATION ESTIMATES.
(a) The Metropolitan Council shall annually prepare an estimate of population for each county, city, and town in the metropolitan area and an estimate of the number of households and average household size for each city in the metropolitan area with a population of 2,500 or more, and an estimate of population over age 65 for each county in the metropolitan area, and convey the estimates to the governing body of each county, city, or town by June 1 each year. In the case of a city or town that is located partly within and partly without the metropolitan area, the Metropolitan Council shall estimate the proportion of the total population and the average size of households that reside within the area. The Metropolitan Council may prepare an estimate of the population and of the average household size for any other political subdivision located in the metropolitan area. 

(b) A governing body may challenge an estimate made under this section by filing its specific objections in writing with the Metropolitan Council by June 24. If the challenge does not result in an acceptable estimate, the governing body may have a special census conducted by the United States Bureau of the Census. The political subdivision must notify the Metropolitan Council on or before July 1 of its intent to have the special census conducted. The political subdivision must bear all costs of the special census. Results of the special census must be received by the Metropolitan Council by the next April 15 to be used in that year's June 1 estimate under this section. The Metropolitan Council shall certify the estimates of population and the average household size to the state demographer and to the commissioner of revenue by July 15 each year, including any estimates still under objection. 

473.242 URBAN RESEARCH.
Where studies have not been otherwise authorized by law the Metropolitan Council may study the feasibility of programs relating but not limited to water supply, refuse disposal, surface water drainage, communication, transportation, and other subjects of concern to the peoples of the metropolitan area, may institute demonstration projects in connection therewith, and may accept gifts for such purposes as otherwise authorized in this section. 

473.245 REPORTS.
On or before January 15 of each year, the Metropolitan Council shall report to the legislature. The report shall include: 

(1) A statement of the Metropolitan Council's receipts and expenditures by category since the preceding report; 

(2) A detailed budget for the year in which the report is filed and the following year including an outline of its program for such period; 

(3) An explanation of any policy plan and other comprehensive plan adopted in whole or in part for the metropolitan area and the review comments of the affected metropolitan agency; 

(4) Summaries of any studies and the recommendations resulting therefrom made by the Metropolitan Council, and a listing of all applications for federal money made by governmental units within the metropolitan area submitted to the Metropolitan Council; 

(5) A listing of plans of local governmental units and proposed matters of metropolitan significance submitted to the Metropolitan Council; 

(6) A detailed report on the progress of any project undertaken by the council pursuant to sections 473.194 to 473.201; and 

(7) Recommendations of the Metropolitan Council for metropolitan area legislation, including the organization and functions of the Metropolitan Council and the metropolitan agencies. 

473.246 COUNCIL'S SUBMISSIONS TO LEGISLATIVE COMMISSION.
The Metropolitan Council shall submit to the Legislative Commission on Metropolitan Government information on the council's tax rates and dollar amounts levied for the current year, proposed property tax rates and levies, operating and capital budgets, work program, capital improvement program, and any other information requested by the commission, for review by the legislative commission, as provided in section 3.8841. 

473.249 TAX LEVY.Subdivision 1.Indexed limit. 
(a) The Metropolitan Council may levy a tax on all taxable property in the metropolitan area defined in section 473.121 to provide funds for the purposes of sections 473.121 to 473.249 and for the purpose of carrying out other responsibilities of the council as provided by law. This tax for general purposes shall be levied and collected in the manner provided by section 473.13. 

(b) The property tax levied by the Metropolitan Council for general purposes shall not exceed $10,522,329 for taxes payable in 2004 and $10,522,329 for taxes payable in 2005. 

(c) The property tax levy limitation for general purposes for taxes payable in 2006 and subsequent years shall not exceed the product of: (1) the Metropolitan Council's property tax levy limitation for general purposes for the previous year determined under this subdivision multiplied by (2) one plus a percentage equal to the growth in the implicit price deflator as defined in section 275.70, subdivision 2. 

Subd. 2.Deadlines; estimates. 
The commissioner of revenue shall certify the council's levy limitation under this section to the council by August 1 of the levy year. The council must certify its proposed property tax levy to the commissioner of revenue by September 1 of the levy year. The commissioner of revenue shall annually determine whether the ad valorem property tax certified by the Metropolitan Council for levy following the adoption of its proposed budget is within the levy limitation imposed by this section. The determination shall be completed prior to September 10 of each year. If current information regarding gross tax capacity in any county is not transmitted to the commissioner in a timely manner, the commissioner may estimate the current gross tax capacity within that county for purposes of making the calculation. 

473.25 LIVABLE COMMUNITIES CRITERIA AND GUIDELINES.
(a) The council shall establish criteria for uses of the fund provided in section 473.251 that are consistent with and promote the purposes of this article and the policies of the Metropolitan Development Guide adopted by the council including, but not limited to: 

(1) helping to change long-term market incentives that adversely impact creation and preservation of living-wage jobs in the fully developed area; 

(2) creating incentives for developing communities to include a full range of housing opportunities; 

(3) creating incentives to preserve and rehabilitate affordable housing in the fully developed area; and 

(4) creating incentives for all communities to implement compact and efficient development. 

(b) The council shall establish guidelines for the livable community demonstration account for projects that the council would consider funding with either grants or loans. The guidelines must provide that the projects will: 

(1) interrelate development or redevelopment and transit; 

(2) interrelate affordable housing and employment growth areas; 

(3) intensify land use that leads to more compact development or redevelopment; 

(4) involve development or redevelopment that mixes incomes of residents in housing, including introducing or reintroducing higher value housing in lower income areas to achieve a mix of housing opportunities; or 

(5) encourage public infrastructure investments which connect urban neighborhoods and suburban communities, attract private sector redevelopment investment in commercial and residential properties adjacent to the public improvement, and provide project area residents with expanded opportunities for private sector employment. 

(c) The council shall establish guidelines governing who may apply for a grant or loan from the fund, providing priority for proposals using innovative partnerships between government, private for-profit, and nonprofit sectors. 

(d) The council shall prepare an annual plan for distribution of the fund based on the criteria for project and applicant selection. 

(e) The council shall prepare and submit to the legislature, as provided in section 3.195, an annual report on the metropolitan livable communities fund. The report must include information on the amount of money in the fund, the amount distributed, to whom the funds were distributed and for what purposes, and an evaluation of the effectiveness of the projects funded in meeting the policies and goals of the council. The report may make recommendations to the legislature on changes to Laws 1995, chapter 255. 

473.251 METROPOLITAN LIVABLE COMMUNITIES FUND.
The metropolitan livable communities fund is created and consists of the following accounts: 

(1) the tax base revitalization account; 

(2) the livable communities demonstration account; 

(3) the local housing incentives account; and 

(4) the inclusionary housing account. 

473.253 LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT.Subdivision 1.Sources of funds. 
The council shall credit to the livable communities demonstration account the revenues provided in this subdivision. This tax shall be levied and collected in the manner provided by section 473.13. The levy shall not exceed the following amount for the years specified: 

(1) for taxes payable in 2004 and 2005, $8,259,070; and 

(2) for taxes payable in 2006 and subsequent years, the product of (i) the property tax levy limit under this subdivision for the previous year multiplied by (ii) one plus a percentage equal to the growth in the implicit price deflator as defined in section 275.70, subdivision 2. 

Subd. 2.Distribution of funds. 
The council shall use the funds in the livable communities demonstration account to make grants or loans to municipalities participating in the local housing incentives program under section 473.254 or to metropolitan area counties or development authorities to fund the initiatives specified in section 473.25, paragraph (b), in participating municipalities. A grant to a metropolitan county or a development authority must be used for a project in a participating municipality. For the purpose of this section, "development authority" means a statutory or home rule charter city, housing and redevelopment authority, economic development authority, or port authority. 

473.254 LOCAL HOUSING INCENTIVES ACCOUNT.Subdivision 1.Participation. 
(a) A municipality may elect to participate in the local housing incentive account program. If the election to participate occurs by November 15 of any year, it is effective commencing the next calendar year; otherwise it is effective commencing the next succeeding calendar year. An election to participate in the program is effective until revoked according to paragraph (b). A municipality is subject to this section only in those calendar years for which its election to participate in the program is effective. For purposes of this section, municipality means a municipality electing to participate in the local housing incentive account program for the calendar year in question, unless the context indicates otherwise. 

(b) A municipality may revoke its election to participate in the local housing incentive account program. If the revocation occurs by November 15 of any year, it is effective commencing the next calendar year; otherwise it is effective commencing the next succeeding calendar year. After revoking its election to participate in the program, a municipality may again elect to participate in the program according to paragraph (a). 

(c) A municipality that elects to participate may receive grants or loans from the tax base revitalization account, livable communities demonstration account, or the local housing incentive account. A municipality that does not participate is not eligible to receive a grant under sections 116J.551 to 116J.557. The council, when making discretionary funding decisions, shall give consideration to a municipality's participation in the local housing incentives program. 

Subd. 2.Affordable, life-cycle goals. 
The council shall negotiate with each municipality to establish affordable and life-cycle housing goals for that municipality that are consistent with and promote the policies of the Metropolitan Council as provided in the adopted Metropolitan Development Guide. The council shall adopt, by resolution after a public hearing, the negotiated affordable and life-cycle housing goals for each municipality by January 15, 1996, and by January 15 in each succeeding year for each municipality newly electing to participate in the program or for each municipality with which new housing goals have been negotiated. By June 30, 1996, and by June 30 in each succeeding year for each municipality newly electing to participate in the program or for each municipality with which new housing goals have been negotiated, each municipality shall identify to the council the actions it plans to take to meet the established housing goals. 

Subd. 3a.Affordable, life-cycle housing opportunities amount. 
(a) Each municipality's "affordable and life-cycle housing opportunities amount" for that year must be determined annually by the council using the method in this subdivision. The affordable and life-cycle housing opportunities amount must be determined for each calendar year for all municipalities in the metropolitan area. 

(b) The council must allocate to each municipality its portion of the $1,000,000 of the revenue generated by the levy authorized in section 473.249 which is credited to the local housing incentives account pursuant to subdivision 5, paragraph (b). The allocation must be made by determining the amount levied for and payable in each municipality in the previous calendar year pursuant to the council levy in section 473.249 divided by the total amount levied for and payable in the metropolitan area in the previous calendar year pursuant to such levy and multiplying that result by $1,000,000. 

(c) The council must also determine the amount levied for and payable in each municipality in the previous calendar year pursuant to the council levy in section 473.253, subdivision 1. 

(d) A municipality's affordable and life-cycle housing opportunities amount for the calendar year is the sum of the amounts determined under paragraphs (b) and (c). 

(e) By August 1 of each year, the council must notify each municipality of its affordable and life-cycle housing opportunities amount for the following calendar year determined by the method in this subdivision. 

Subd. 4.Affordable and life-cycle housing requirement. 
(a) A municipality that does not spend 85 percent of its affordable and life-cycle housing opportunities amount to create affordable and life-cycle housing opportunities in the previous calendar year must do one of the following with the affordable and life-cycle housing opportunities amount for the previous year as determined under subdivision 3a: 

(1) distribute it to the local housing incentives account; or 

(2) distribute it to the housing and redevelopment authority of the city or county in which the municipality is located to create affordable and life-cycle housing opportunities in the municipality. 

(b) A municipality may enter into agreements with adjacent municipalities to cooperatively provide affordable and life-cycle housing. The housing may be provided in any of the cooperating municipalities, but must meet the combined housing goals of each participating municipality. 

Subd. 5.Sources of funds. 
(a) The council shall credit to the local housing incentives account any revenues derived from municipalities under subdivision 4, paragraph (a), clause (1). 

(b) The council shall annually credit $1,000,000 of the revenues generated by the levy authorized in section 473.249 to the local housing incentives account. 

(c) The council shall annually transfer $500,000 from the livable communities demonstration account to the local housing incentives account. 

Subd. 6.Distribution of funds. 
The funds in the account must be distributed annually by the council to municipalities that: 

(1) have not met their affordable and life-cycle housing goals as determined by the council; and 

(2) are actively funding projects designed to help meet the goals. 

Funds may also be distributed to a development authority for a project in an eligible municipality. The funds distributed by the council must be matched on a dollar-for-dollar basis by the municipality or development authority receiving the funds. When distributing funds in the account, the council must give priority to projects that (1) are in municipalities that have contribution net tax capacities that exceed their distribution net tax capacities by more than $200 per household, (2) demonstrate the proposed project will link employment opportunities with affordable and life-cycle housing, and (3) provide matching funds from a source other than the required affordable and life-cycle housing opportunities amount under subdivision 3 or 3a, as applicable. For the purposes of this subdivision, "municipality" means a statutory or home rule charter city or town in the metropolitan area and "development authority" means a housing and redevelopment authority, economic development authority, or port authority. 

Subd. 7.Report to council. 
By July 1, 2004, and by July 1 in each succeeding year, each municipality must certify to the council whether or not it has spent 85 percent of its affordable and life-cycle housing opportunities amount, as determined under subdivision 3a, in the previous calendar year to create affordable and life-cycle housing opportunities. The council may verify each municipality's certification. 

Subd. 8.Later election to participate. 
If a municipality did not participate for one or more years and elects later to participate, the municipality must, with respect to its affordable and life-cycle housing opportunities amount for the calendar year preceding the participating calendar year: 

(1) establish that it spent such amount on affordable and life-cycle housing during that preceding calendar year; or 

(2) agree to spend such amount from the preceding calendar year on affordable and life-cycle housing in the participating calendar year, in addition to its affordable and life-cycle housing opportunities amount for the participating calendar year; or 

(3) distribute such amount to the local housing incentives account. 

The council will determine which investments count toward the required affordable and life-cycle housing opportunities amount by comparing the municipality to participating municipalities similar in terms of stage of development and demographics. If it determines it to be in the best interests of the region, the council may waive a reasonable portion of the amount. 

Subd. 9.Report to legislature. 
By February 1 of each year, the council must report to the legislature the municipalities that have elected to participate and not to participate under subdivision 1. This report must be filed as provided in section 3.195. 

Subd. 10.Metro report card. 
The Metropolitan Council shall present to the legislature and release to the public by November 15, 1996, and each year thereafter a comprehensive report card on affordable and life-cycle housing in each municipality in the metropolitan area. The report card must include information on government, nonprofit, and marketplace efforts. 

473.255 INCLUSIONARY HOUSING ACCOUNT.Subdivision 1.Definitions. 
(a) "Inclusionary housing development" means a new construction development, including owner-occupied or rental housing, or a combination of both, with a variety of prices and designs which serve families with a range of incomes and housing needs. 

(b) "Municipality" means a statutory or home rule charter city or town participating in the local housing incentives program under section 473.254. 

(c) "Development authority" means a housing and redevelopment authority, economic development authority, or port authority. 

Subd. 2.Application criteria. 
The Metropolitan Council must give preference to economically viable proposals to the degree that they: (1) use innovative building techniques or materials to lower construction costs while maintaining high quality construction and livability; (2) are located in communities that have demonstrated a willingness to waive local restrictions which otherwise would increase costs of construction; and (3) include units affordable to households with incomes at or below 80 percent of area median income. 

Priority shall be given to proposals where at least 15 percent of the owner-occupied units are affordable to households at or below 60 percent of the area annual median income and at least ten percent of the rental units are affordable to households at or below 30 percent of area annual median income. 

An inclusionary housing development may include resale limitations on its affordable units. The limitations may include a minimum ownership period before a purchaser may profit on the sale of an affordable unit. 

Cost savings from regulatory incentives must be reflected in the sale of all residences in an inclusionary development. 

Subd. 3.Inclusionary housing incentives. 
The Metropolitan Council may work with municipalities and developers to provide incentives to inclusionary housing developments such as waiver of service availability charges and other regulatory incentives that would result in identifiable cost avoidance or reductions for an inclusionary housing development. 

Subd. 4.Inclusionary housing grants. 
The council shall use funds in the inclusionary housing account to make grants or loans to municipalities or development authorities to fund the production of inclusionary housing developments that are located in municipalities that offer incentives to assist in the production of inclusionary housing. Such incentives include but are not limited to: density bonuses, reduced setbacks and parking requirements, decreased road widths, flexibility in site development standards and zoning code requirements, waiver of permit or impact fees, fast-track permitting and approvals, or any other regulatory incentives that would result in identifiable cost avoidance or reductions that contribute to the economic feasibility of inclusionary housing. 

Subd. 5.Grant application. 
A grant application must at a minimum include the location of the inclusionary development, the type of housing to be produced, the number of affordable units to be produced, the monthly rent, or purchase price of the affordable units, and the incentives provided by the municipality to achieve development of the affordable units. 

473.3875 TRANSIT FOR LIVABLE COMMUNITIES.
The council shall establish a transit for livable communities demonstration program fund. The council shall adopt guidelines for selecting and evaluating demonstration projects for funding. The selection guidelines must include provisions evaluating projects: 

(1) interrelating development or redevelopment and transit; 

(2) interrelating affordable housing and employment growth areas; 

(3) helping intensify land use that leads to more compact development or redevelopment; 

(4) coordinating school transportation and public transit service; 

(5) implementing recommendations of the transit redesign plan; or 

(6) otherwise promoting the goals of the Metropolitan Livable Communities Act. 

473.388 REPLACEMENT SERVICE PROGRAM.Subdivision 1.Program established. 
A replacement service program is established to continue the metropolitan transit service demonstration program established in Minnesota Statutes 1982, section 174.265, as provided in this section. 

Subd. 2.Replacement service; eligibility. 
The council may provide assistance under the program to a statutory or home rule charter city or town or combination thereof, that: 

(a) is located in the metropolitan transit taxing district; 

(b) is not served by the council bus service or is served only with council bus routes which begin or end within the applying city or town or combination thereof; and 

(c) has fewer than four scheduled runs of council bus service during off-peak hours as defined by the Metropolitan Council. 

Eligible cities or towns or combinations thereof may apply on behalf of a transit operator with whom they propose to contract for service. 

The council may not provide assistance under this section to a statutory or home rule charter city or town unless the city or town, 

(i) was receiving assistance under Minnesota Statutes 1982, section 174.265, by July 1, 1984, 

(ii) had submitted an application for assistance under that section by July 1, 1984, or 

(iii) had submitted a letter of intent to apply for assistance under that section by July 1, 1984, and submits an application for assistance under this section by July 1, 1988. A statutory or home rule charter city or town has an additional 12-month extension if it notified the former regional transit board before July 1, 1988, that the city or town is in the process of completing a transportation evaluation study that includes an assessment of the local transit needs of the city or town. 

Subd. 3.Application for assistance. 
An application for assistance under this section must: 

(a) describe the existing service provided to the applicant by the council, including the estimated number of passengers carried and the routes, schedules, and fares; 

(b) describe the transit service proposed for funding under the demonstration program, including the anticipated number of passengers and the routes, schedules, and fares; and 

(c) indicate the total amount of available local transit funds, the portion of the available local transit funds proposed to be used to subsidize replacement services, and the amount of assistance requested for the replacement services. 

Subd. 4.Financial assistance. 
(a) The council must grant the requested financial assistance if it determines that the proposed service is intended to replace the service to the applying city or town or combination thereof by the council and that the proposed service will meet the needs of the applicant at least as efficiently and effectively as the existing service. 

(b) The amount of assistance which the council must provide to a system under this section may not be less than the sum of the amounts determined for each municipality comprising the system as follows: 

(1) the transit operating assistance grants received under this subdivision by the municipality in calendar year 2001 or the tax revenues for transit services levied by the municipality for taxes payable in 2001, including that portion of the levy derived from the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of the municipality's aid under Minnesota Statutes 2002, section 273.1398, subdivision 2, attributable to the transit levy; times 

(2) the ratio of (i) an amount equal to 3.74 percent of the state revenues generated from the taxes imposed under chapter 297B for the current fiscal year to (ii) the total transit operating assistance grants received under this subdivision in calendar year 2001 or the tax revenues for transit services levied by all replacement service municipalities under this section for taxes payable in 2001, including that portion of the levy derived from the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of homestead and agricultural credit aid under Minnesota Statutes 2002, section 273.1398, subdivision 2, attributable to nondebt transit levies; times 

(3) the ratio of (i) the municipality's total taxable market value for taxes payable in 2006 divided by the municipality's total taxable market value for taxes payable in 2001, to (ii) the total taxable market value of all property located in replacement service municipalities for taxes payable in 2006 divided by the total taxable market value of all property located in replacement service municipalities for taxes payable in 2001. 

(c) The council shall pay the amount to be provided to the recipient from the funds the council receives in the metropolitan area transit account under section 16A.88. 

Subd. 5.Other assistance. 
A city or town receiving assistance or levying a transit tax under this section may also receive assistance from the council under section 473.384. In applying for assistance under that section an applicant must describe the portion of its available local transit funds or local transit taxes which are not obligated to subsidize its replacement transit service and which the applicant proposes to use to subsidize additional service. An applicant which has exhausted its available local transit funds or local transit taxes may use any other local subsidy funds to complete the required local share. 

Subd. 7.Local levy option. 
(a) A statutory or home rule charter city or town that is eligible for assistance under this section may levy a tax for payment of obligations issued by the municipality for capital expenditures for transit and other related activities, provided that property taxes were pledged to satisfy the obligations, and provided that legislative appropriations are insufficient to satisfy the obligations. 

(b) This subdivision is consistent with the transit redesign plan. Eligible municipalities opting to operate under this subdivision shall continue to meet the regional performance standards established by the council. 

(c) Within the designated Americans with Disabilities Act area, Metro Mobility remains the obligation of the state. 

473.39 BORROWING MONEY.Subd. 4.Transit capital improvement program. 
The council may not issue obligations pursuant to this section until the council adopts a three-year transit capital improvement program. The program must include a capital investment component that sets forth a capital investment strategy and estimates the fiscal and other effects of the strategy. The component must specify, to the extent practicable, the capital improvements to be undertaken. For each improvement specified, the program must describe: (1) need, function, objective, and relative priority; (2) alternatives, including alternatives not involving capital expenditures; (3) ownership and operating entity; (4) location and schedule of development; (5) environmental, social, and economic effects; (6) cost; (7) manner of finance and revenue sources, including federal and state funds, private funds, taxes, and user charges; and (8) fiscal effects, including an estimate of annual operating costs and sources of revenue to pay the costs. 

473.3993 LIGHT RAIL TRANSIT FACILITY PLANS; DEFINITIONS.Subd. 4.Responsible authority. 
"Responsible authority" means either the Metropolitan Council or the state of Minnesota acting through the commissioner of transportation, as designated by the governor under section 473.3994, subdivision 1a, for a particular light rail transit facility. 

473.3999 LIGHT RAIL TRANSIT CONSTRUCTION; COUNCIL AUTHORITY.
The Metropolitan Council may exercise the powers granted in this chapter and in other applicable law, as necessary, to plan, design, acquire, construct, and equip light rail transit facilities in the metropolitan area as defined in section 473.121, subdivision 2. 

473.411 TRANSIT AND HIGHWAY SYSTEMS.Subd. 3.Services of Department of Transportation. 
The council may make use of engineering and other technical and professional services, including regular staff and qualified consultants, which the commissioner of transportation can furnish, upon fair and reasonable reimbursement for the cost thereof; provided, that the council has final authority over the employment of any services from other sources which it may deem necessary for such purposes. The commissioner of transportation may furnish all engineering, legal, and other services, if so requested by the council and upon fair and reasonable reimbursement for the cost thereof by the council, for the purposes stated in this subdivision, including the acquisition by purchase, condemnation, or otherwise in the name of the council of all lands, waters, easements, or other rights or interests in lands or waters required by the council. No purchase of service agreements may be made under this subdivision which are not included in the budget of the council. 

Subd. 4.State highways; joint use for transit and highway purposes. 
Wherever the joint construction or use of a state highway is feasible in fulfilling the purposes of sections 473.405 to 473.449, the council shall enter into an agreement with the commissioner of transportation therefor, evidenced by a memorandum setting forth the terms of the agreement. Either the council or the commissioner of transportation may acquire any additional lands, waters, easements or other rights or interests required for joint use in accordance with the agreement, or joint acquisition may be made by condemnation as provided by section 117.016 and the provisions of sections 473.405 to 473.449. Under the agreement each party shall pay to the other party reasonable compensation for the costs of any services performed at the request of the other party which may include any costs of engineering, design, acquisition of property, construction of the facilities, and for the use thereof so far as attributable to and necessary for the purposes. The council may not agree to acquisitions or expenditures under this subdivision which are not included in its budget. 

473.4461 ADDITIONS TO TRANSIT TAXING DISTRICT.
Notwithstanding any provision of section 473.446 or any other law, the Metropolitan Council may not levy a tax under section 473.446, subdivision 1, in any city or town not included in the transit taxing district as it existed on January 1, 2001, unless the council and the governing body of that city or town have agreed on a service expansion plan. 

473.501 DEFINITIONS.Subdivision 1.Terms. 
The terms defined in this section shall have the meanings given them for the purposes of sections 473.501 to 473.549 unless otherwise provided or indicated by the context. 

Subd. 3.Local government unit or government unit. 
"Local government unit" or "government unit" means any municipal or public corporation or governmental subdivision or agency located in whole or in part in the metropolitan area, authorized by law to provide for the collection and disposal of sewage. 

473.504 WASTEWATER SERVICES, POWERS.Subd. 4.Rules, penalties. 
The council shall have the power to adopt rules relating to the operation of any interceptors or treatment works operated by it, and may provide penalties for the violation thereof not exceeding the maximum which may be specified for a misdemeanor. Any rule prescribing a penalty for violation shall be published at least once in a newspaper having general circulation in the metropolitan area. 

Subd. 5.Gifts, grants, loans. 
The council may accept gifts, may apply for and accept grants or loans of money or other property from the United States, the state, or any person for any of its purposes whether for construction, research, or pilot project implementation, may enter into any agreement required in connection therewith, and may hold, use, and dispose of such money or property in accordance with the terms of the gift, grant, loan, or agreement relating thereto. 

Subd. 6.Joint or cooperative action. 
The council may act under the provisions of section 471.59, or any other appropriate law providing for joint or cooperative action between government units. 

Subd. 9.May get property. 
The council may acquire by purchase, lease, condemnation, gift, or grant, any real or personal property including positive and negative easements and water and air rights, and it may construct, enlarge, improve, replace, repair, maintain, and operate any interceptor or treatment works determined to be necessary or convenient for the collection and disposal of sewage in the metropolitan area. Any local government unit and the commissioners of transportation and natural resources are authorized to convey to or permit the use of any such facilities owned or controlled by it by the council, subject to the rights of the holders of any bonds issued with respect thereto, with or without compensation, without an election or approval by any other government agency. All powers conferred by this subdivision may be exercised both within or without the metropolitan area as may be necessary for the exercise by the council of its powers or the accomplishment of its purposes. The council may hold such property for its purposes, and may lease any such property so far as not needed for its purposes, upon such terms and in such manner as it shall deem advisable. Unless otherwise provided, the right to acquire lands and property rights by condemnation shall be exercised in accordance with chapter 117, and shall apply to any property or interest therein owned by any local government unit; provided, that no such property devoted to an actual public use at the time, or held to be devoted to such use within a reasonable time, shall be so acquired unless a court of competent jurisdiction shall determine that the use proposed by the board is paramount to such use. Except in case of property in actual public use, the council may take possession of any property for which condemnation proceedings have been commenced at any time after the issuance of a court order appointing commissioners for its condemnation. 

Subd. 10.Nonfranchise required. 
The council may construct or maintain its systems or facilities in, along, on, under, over, or through public streets, bridges, viaducts, and other public rights-of-way without first obtaining a franchise from any local government unit having jurisdiction over them; but such facilities shall be constructed and maintained in accordance with the ordinances and resolutions of any such government unit relating to construction, installation, and maintenance of similar facilities in such public properties and shall not obstruct the public use of such rights-of-way. 

Subd. 11.Surplus property. 
The council may sell or otherwise dispose of any real or personal property acquired by it which is no longer required for accomplishment of its purposes. 

Subd. 12.Pacts with other governments. 
The council may contract with the United States or any agency thereof, any state or agency thereof, or any local government unit or governmental agency or subdivision, for the joint use of any facility owned by the council or such entity, for the operation by such entity of any system or facility of the council, or for the performance on the council's behalf of any service, on such terms as may be agreed upon by the contracting parties. 

473.505 TOTAL WATERSHED MANAGEMENT.
The Metropolitan Council may enter into agreements with other governmental bodies and agencies and spend funds to implement total watershed management. "Total watershed management" means identifying and quantifying at a watershed level the (1) sources of pollution, both point and nonpoint, (2) causes of conditions that may or may not be a result of pollution, and (3) means of reducing pollution or alleviating adverse conditions. The purpose of total watershed management is to achieve the best water quality for waters of the state receiving the effluent of the metropolitan disposal system for the lowest total costs, without regard to who will incur those costs. 

473.511 SEWER SERVICE FUNCTION.Subdivision 1.Duty of council; existing, new facilities. 
At any time after January 1, 1970, until July 1, 1994, the former Metropolitan Waste Control Commission, and after July 1, 1994, the council shall assume ownership of all existing interceptors and treatment works which will be needed to implement the council's comprehensive plan for the collection, treatment, and disposal of sewage in the metropolitan area, in the manner and subject to the conditions prescribed in subdivisions 2 and 4, and shall thereafter acquire, construct, equip, operate and maintain all additional interceptors and treatment works which will be needed for such purpose. The council shall assume ownership of all treatment works owned by a local government unit if any part of such treatment works will be needed for such purpose. 

Subd. 2.Method of acquisition; existing debt. 
The council may require any local government unit to transfer to the council, all of its right, title and interest in any interceptors or treatment works and all necessary appurtenances thereto owned by such local government unit which will be needed for the purpose stated in subdivision 1. Appropriate instruments of conveyance for all such property shall be executed and delivered to the council by the proper officers of each local government unit concerned. All persons regularly employed by a local government unit to operate and maintain any treatment works so transferred to the council, on the date on which the transfer becomes effective, shall be employees of the council, in the same manner and with the same options and rights as are reserved to employees of sanitary districts and joint boards under subdivision 3. The council, upon assuming ownership of any such interceptors or treatment works, shall become obligated to pay to such local government unit amounts sufficient to pay when due all remaining principal of and interest on bonds issued by such local government unit for the acquisition or betterment of the interceptors or treatment works taken over. Such amounts may be offset against any amount to be paid to the council by the local government unit as provided in section 473.517. 

Subd. 3.Existing sanitary districts, joint sewer boards. 
Effective January 1, 1971, the corporate existence of the Minneapolis-St. Paul Sanitary District, the North Suburban Sanitary Sewer District, and any joint board created by agreement among local government units under section 471.59, to provide interceptors and treatment works for such local government units, terminate. All persons regularly employed by such sanitary districts and joint boards on that date or on any earlier date on which the former waste control commission pursuant to subdivisions 1 and 2 assumed ownership and control of any interceptors or treatment works owned or operated by such sanitary districts and joint boards, and who are employees of the commission on July 1, 1994, are employees of the council. Members of trades who are employed by the former Metropolitan Waste Control Commission, who have trade union pension coverage under a collective bargaining agreement, and who elected exclusion from coverage under section 473.512, or who are first employed after July 1, 1977, may not be covered by the Minnesota State Retirement System. The council shall make the employer's contributions to pension funds of its employees. Such employees shall perform such duties as may be prescribed by the council. All funds of such sanitary districts and joint boards then on hand, and all subsequent collections of taxes, special assessments or service charges levied or imposed by or for such sanitary districts or joint boards must be transferred to the council. The local government units otherwise entitled to such cash, taxes, assessments, or service charges must be credited with such amounts, and such credits must be offset against any amounts to be paid by them to the council as provided in section 473.517. The former Metropolitan Waste Control Commission, and on July 1, 1994, the council shall succeed to and become vested by action of law with all right, title and interest in and to any property, real or personal, owned or operated by such sanitary districts and joint boards. Prior to that date the proper officers of such sanitary districts and joint boards, or the former Metropolitan Waste Control Commission, shall execute and deliver to the council all deeds, conveyances, bills of sale, and other documents or instruments required to vest in the council good and marketable title to all such real or personal property; provided that vesting of the title must occur by operation of law and failure to execute and deliver the documents does not affect the vesting of title in the former Metropolitan Waste Control Commission or the council on the dates indicated in this subdivision. The council shall become obligated to pay or assume all bonded or other debt and contract obligations incurred by the former Metropolitan Waste Control Commission, or by such sanitary districts and joint boards, or incurred by local government units for the acquisition or betterment of any interceptors or treatment works owned or operated by such sanitary districts or joint boards. 

Subd. 4.Current value of existing facilities. 
When the council assumes the ownership of any existing interceptors or treatment works as provided in subdivision 2 or 3, the local government unit or units which paid part or all of the cost of such facility, directly or pursuant to contracts for reimbursement of costs, shall be entitled to receive a credit against amounts to be allocated to them under section 473.517, which may be spread over such period not exceeding 30 years as the council shall determine, and an additional credit equal to interest on the unused credit balance from time to time at the rate of four percent per annum. The amount of such credit shall equal the current value of the facility computed by the council in the manner provided in this subdivision at the time the council acquires it. The original cost of a facility shall be computed as the total actual costs of constructing it, including engineering, legal, and administrative costs, less any part of it paid from federal or state funds and less the principal amount of any then outstanding bonds which were issued to finance its construction. The original cost shall be multiplied by a factor equal to a current cost index divided by the same cost index at the time of construction, to determine replacement cost. The cost indices used shall be the Engineering News Record Construction Cost Indices for facilities or parts thereof completed before 1930, and the United States Public Health Service Federal Water Pollution Control Values for Sewer and Treatment Plant Construction, as applied to facilities or parts thereof completed in or after 1930. The current value of the facility shall be the replacement cost depreciated by 4.00 percent per annum from the date of construction of treatment works, 2.50 percent per annum from the date of construction of interceptors which operate under pressure, and 1.25 percent per annum from the date of construction of interceptors which do not operate under pressure; and decreased further by a reasonable allowance for obsolescence if the council determines that the facility or any part thereof will not be useful for council purposes for at least the remaining period required to depreciate it fully, assuming no salvage value. The current value of each such facility shall be credited to each local government unit in proportion to the amount of the construction cost paid by that unit, as determined by the council, taking into account reimbursements previously made under contracts between any of the local government units. The council shall prepare an itemized statement of the amount of credit each local government unit is entitled to receive under this subdivision, and the years and amounts of installments of principal and interest thereon, and shall cause it to be mailed or delivered to the governing body of each local government unit concerned. All credits allowed under this subdivision shall be used to finance current costs allocated to the local government unit by the council or for other sewer costs, and the credits shall not be considered as proceeds from the sale of municipal property so as to permit their use for other purposes. At its option, the council may make a periodic payment to each local government unit in the amount of the credits provided pursuant to this subdivision, in lieu of a credit against amounts to be allocated to such local government units under section 473.517. 

473.5111 TRANSFER, DISPOSAL OF NONMETROPOLITAN INTERCEPTOR.Subdivision 1.Definitions. 
In this section, the definitions in this subdivision apply, except as otherwise expressly provided or indicated by the context. 

(a) The term "in good operating condition" with reference to an interceptor means that the facility is currently operational and that the pipes or sewer mains portion only of the facility is expected to have structural integrity, as appropriate for the proposed use of the pipe, for a period of ten or more years after the date of a determination or certification of good operating condition under this section. 

(b) The term "interceptor" has the meaning given it in section 473.121, subdivision 23, and includes a designated portion of an interceptor. 

(c) The term "local government unit," with respect to an interceptor that is a storm sewer, means a local governmental unit as defined in section 473.121, subdivision 6. The term local government unit, with respect to an interceptor that is not a storm sewer, means a local government unit as defined in section 473.501, subdivision 3. 

(d) The term "storm sewer" means a facility that currently carries exclusively water runoff, surface water, or other drainage, rather than sewage. 

(e) The term "use as a local facility" includes use as either a sanitary sewer or a storm sewer. 

Subd. 2.Nonmetropolitan status determination. 
The council may determine that an interceptor is no longer needed to implement the council's comprehensive plan for the collection, treatment, and disposal of sewage in the metropolitan area. If the council makes the determination, it may use the procedures in this section to sell, transfer, abandon, or otherwise dispose of the interceptor. 

Subd. 3.Local benefit determination; transfer to benefited community. 
(a) If the council uses the procedures in this section, it must, with regard to each interceptor for which the determination is made in subdivision 2, determine whether or not the interceptor continues to be of benefit for use as a local facility for one or more local government units. If the council determines that the interceptor does not continue to be of benefit as a local facility, it must notify each local government unit in which the interceptor is located, of this determination. 

(b) Such a government unit may notify the council in writing within 90 days from receipt of notice that it believes the interceptor provides a local benefit to the government unit and that it desires to take possession of the interceptor. The council may extend the time for a government unit to provide this notice. If a government unit delivers a written notice to the council in accordance with this paragraph, the council must transfer the interceptor at no cost to the government unit by preparing and transmitting a bill of sale for the facility and quitclaim deeds for any property rights associated with the facility that are no longer needed for the council's purposes. Upon receipt of the bill of sale, the government unit is the owner of the interceptor and thereafter responsible for its operation and maintenance. 

(c) If the council does not receive notice from a government unit under paragraph (b), the council may sell, transfer, abandon, or otherwise dispose of the interceptor in such manner as it may deem fit. 

Subd. 4.Preliminary council determinations; notice to local government units. 
If the council determines that an interceptor continues to be of benefit for use as a local facility for one or more local government units, it must designate those units that are so benefited and the portions of the interceptor that should properly be transferred to the benefited units. It must also determine whether the interceptor is in good operating condition and, if not, the necessary repairs, and their cost, needed to put the interceptor in good operating condition. The council must provide written notice to each designated unit of the council's determinations in this subdivision. 

Subd. 5.Contested case; administrative and judicial review. 
(a) The council's preliminary determinations under subdivision 4 may be contested by a local government unit which has been designated by the council under that subdivision. The unit has 90 days from receiving notice of the council's determinations under subdivision 4 within which to make a written request to the council for a hearing on the council's determinations. The unit in its request for hearing must specify the determinations with which it disagrees and its position with regard to those determinations. If within 90 days no designated unit has requested a hearing in writing, the council's preliminary determinations become its final decision with respect to the determinations under subdivision 4 and the final decision is binding on all designated units. If a designated unit requests a hearing, the request for hearing must be granted and the hearing must be conducted by the Office of Administrative Hearings in the manner provided by chapter 14 for contested cases. The subject of the hearing must extend only to those council determinations under subdivision 4 for which a hearing has been requested. The council and all local government units designated by the council under subdivision 4 are parties to the contested case proceeding. 

(b) Charges of the Office of Administrative Hearings must be divided equally among the council and those parties who requested a hearing under paragraph (a). Otherwise, each party is responsible for its own costs and expenses in the proceeding. 

(c) After receipt of the report of the Office of Administrative Hearings, the council must make a final decision with respect to the determinations in subdivision 4. Any party to the contested case proceeding who is aggrieved by the final decision of the council may make a judicial appeal in the manner provided in chapter 14 for contested cases. 

Subd. 6.Council options. 
(a) If the council's final decision after a proceeding under subdivision 5 is that the interceptor does not continue to be of benefit for use as a local facility, it may sell, transfer, abandon, or otherwise dispose of the interceptor in such manner as it may deem fit. 

(b) If the council's final decision is that the interceptor continues to be of benefit for use as a local facility, but is not in good operating condition, it may either: 

(1) continue to operate the interceptor until sold, transferred, abandoned, or otherwise disposed of in such manner as it may deem fit; or 

(2) repair the interceptor as necessary to put the interceptor in good operating condition, certify that it is in good operating condition, and proceed under subdivision 7. 

(c) If the council's final decision is that the interceptor continues to be of benefit for use as a local facility and is in good operating condition, it must proceed under subdivision 7. 

Subd. 7.Transfer agreement; local benefit charge; transfer to benefited community. 
(a) This subdivision applies if an interceptor designated in subdivision 2 continues to be of benefit as a local facility and is determined or, after repair is certified, by the council to be in good operating condition. 

(b) The council and each local government unit that has been determined to have a benefit in accordance with the procedures in this section must negotiate and enter into an agreement governing transfer of an interceptor that has been determined to have benefit for use as a local facility. 

(c) The agreement may provide for the council to share in the cost of emergency repairs to the transferred interceptor for an agreed warranty period not exceeding ten years beyond the later of: 

(1) the date of the preliminary council determination of good operating condition in subdivision 4; or 

(2) the date of the certification in subdivision 6, paragraph (b), clause (2). 

(d) The agreement may also contain arrangements between one or more local government units concerning shared use, ownership, operation, or maintenance of the transferred interceptor. 

(e) If the interceptor is not a storm sewer and is not transferred in its entirety to local government units, the council must charge a local benefit charge for the portions of the interceptor not transferred. 

(f) The charge must begin on the later of: 

(1) two years from the date of the determination in subdivision 2; or 

(2) the day after the completion of any contested case proceeding under subdivision 5, including any judicial appeals. 

(g) The local benefit charge must be: 

(1) based on the costs of overhead, operation, maintenance, rehabilitation, and debt service of that portion of the interceptor not transferred; 

(2) charged to all local government units which have not taken ownership of their allocated portion of the interceptor; and 

(3) allocated in accordance with the final decision of the council under subdivision 5. 

(h) The local benefit charge is considered a charge payable by the local government unit to the council under section 473.521 and must continue to be paid by the local government unit until the interceptor is transferred to it. 

(i) If the facility is a storm sewer and is not transferred in its entirety to the benefited local government unit or units by the later of: 

(1) two years from the date of the determination in subdivision 2; or 

(2) the day after the completion of any contested case proceeding under subdivision 5, including any judicial appeals, 

then the facility is transferred effective on the later of the dates in clauses (1) and (2), by operation of law, to the unit or units determined to have a benefit in accordance with the procedures under this section. 

(j) The transfer is not dependent on an agreement between the council and the local government unit or units and is at no cost to the receiving unit. 

(k) The local government unit is thereafter the owner of the interceptor and responsible for its operation and maintenance. 

(l) The council must prepare and transmit to the appropriate government unit or units bills of sale for the facility, and quitclaim deeds for any property rights associated with the facility which are no longer needed for the council's purposes. 

Subd. 8.Power to operate, maintain, and repair facility. 
Until such time as an interceptor is sold, transferred, abandoned, or otherwise disposed of under this section, the council has all powers under this chapter to operate, maintain, and repair the interceptor. After transfer of an interceptor, the council has all powers under this chapter to provide emergency repairs under any agreed warranty period incorporated into a transfer agreement under subdivision 7. 

473.512 PENSION EXCLUSION FOR CERTAIN LABOR SERVICE EMPLOYEES.Subdivision 1.Qualification, conditions. 
A member of a trade who is employed by the former metropolitan waste control commission, and on July 1, 1994, is employed by the council, on a permanent basis with trade union pension plan coverage pursuant to a collective bargaining agreement shall be excluded from coverage by the Minnesota State Retirement System if the member was first employed on or after June 1, 1977 or, if the member was first employed prior to June 1, 1977, has elected to be excluded from coverage by the Minnesota State Retirement System pursuant to subdivision 2, and has accepted a refund of contributions pursuant to subdivision 3. 

Subd. 2.Deadline, effect. 
A member of a trade entitled under subdivision 1 to make an election of exclusion from pension coverage by the Minnesota State Retirement System may make the election of exclusion no later than August 1, 1977 on forms provided by the executive director of the Minnesota State Retirement System. The election of exclusion from coverage shall be a one time election irrevocable while employed in such capacity and shall have retroactive application to the first day of membership in the Minnesota State Retirement System. 

Subd. 3.Refund. 
Upon electing to be excluded from coverage as provided in subdivision 2 and making a valid application, a member of a trade shall be entitled to a refund of both the accumulated employee and the employer contributions made pursuant to Minnesota Statutes 1976, section 352.04, subdivision 3, on behalf of the member plus interest at the rate of 3-1/2 percent per annum compounded annually from the date of commencement of coverage, computed to the first day of the month in which the refund is processed and shall be based on fiscal year balances. The application for the refund may be made without the waiting period provided for in section 352.22, subdivision 1. No repayment of a refund made under this section shall be permitted. 

473.513 MUNICIPAL PLANS AND PROGRAMS.
As soon as practicable after the adoption of the first policy plan by the council as provided in section 473.146, and before undertaking the construction of any extensions or additions to its disposal system or the substantial alteration or improvement of its existing disposal system, each local government unit shall adopt a similar policy plan for the collection, treatment and disposal of sewage for which the local government unit is responsible, coordinated with the council's plan, and may revise the same as often as it deems necessary. Each such plan shall be submitted forthwith to the council for review and shall be subject to the approval of the council as to those features affecting the council's responsibilities as determined by the council. Any such features disapproved by the council shall be modified in accordance with the council's recommendations. No construction of new sewers or other disposal facilities, and no substantial alteration or improvement of any existing sewers or other disposal facilities involving such features, shall be undertaken by any local government unit unless its governing body shall first find the same to be in accordance with its comprehensive plan and program as approved by the council. At the time each local government unit makes application to the Minnesota Pollution Control Agency for a permit to alter or improve its disposal system it shall file with the council a copy of the application together with design data and a location map of the project. 

473.515 SEWAGE COLLECTION AND DISPOSAL; POWERS.Subdivision 1.Identification of powers. 
In addition to all other powers conferred upon or delegated to the council hereunder, it shall have the powers specified in this section. 

Subd. 2.Right to discharge treated sewage. 
The council shall have the right to discharge the effluent from any treatment works operated by it into any waters of the state in accordance with any effluent or water quality standards lawfully adopted by the Pollution Control Agency. 

Subd. 3.Connections with metropolitan system. 
The council may require any person or local government unit in the metropolitan area to provide for the discharge of its sewage, directly or indirectly, into the metropolitan disposal system, or to connect any disposal system or part thereof with the metropolitan disposal system wherever reasonable opportunity therefor is provided; may regulate the manner in which such connections are made; may require any person or local government unit discharging sewage into the metropolitan disposal system to provide preliminary treatment therefor; may prohibit the discharge into the metropolitan disposal system of any substance which it determines will or may be harmful to the system or any persons operating it; and may require any local government unit to discontinue the acquisition, betterment, or operation of any facility for its disposal system wherever and so far as adequate service is or will be provided by the metropolitan disposal system. 

473.5155 VIOLATION OF WASTEWATER LAW; REMEDIES, PENALTIES.Subdivision 1.Remedies available. 
(a) For purposes of this section, "violation" means any discharge or action by a person that violates sections 473.501 to 473.549 or rules, standards, variances, limitations, orders, stipulations, agreements, schedules of compliance, or permits that are issued or adopted by the council under sections 473.501 to 473.549. 

(b) Each violation may be enforced by any one or a combination of the following: criminal prosecution, civil action, or other appropriate action in accordance with sections 473.501 to 473.549. 

Subd. 2.Criminal penalties; duties. 
(a) Any person who commits a violation under subdivision 1 may be sentenced to imprisonment for not more than 90 days or to payment of a fine of not more than $1,000, or both. 

(b) County attorneys, sheriffs and other peace officers, and other officers authorized to enforce criminal laws shall take all action necessary to prosecute and punish violations. 

Subd. 3.Civil penalties. 
A violation is subject to a penalty payable to the state, in an amount to be determined by the court, of not more than $1,000 per day of violation. The civil penalty may be recovered by a civil action brought by the council in the name of the state. 

473.516 WASTE FACILITIES; SEWAGE SLUDGE DISPOSAL.Subdivision 1.Acquisition and operation. 
Without limiting the grant or enumeration of any of the powers conferred on the council under sections 473.501 to 473.549, the council shall have the specific power to acquire by purchase, lease, condemnation, gift or grant any real or personal property, positive and negative easements and water and air rights, and it may construct, enlarge, improve, replace, repair, maintain and operate waste facilities in the metropolitan area deemed to be necessary or convenient in connection with the processing or disposal of waste resulting from sewage treatment, and the council may contract for the maintenance and operation of such waste facilities, subject to the bidding requirements of section 473.523. The council may accept for processing waste derived from outside the metropolitan area in the state, as well as waste derived from within the metropolitan area, and may fix and collect fees and charges for the acceptance of waste as the council determines to be reasonable. 

Subd. 2.General requirements. 
With respect to its activities under this section, the council shall be subject to and comply with the applicable provisions of this chapter. Property acquired by the council under this section shall be subject to the provisions of section 473.545. Any site or facility owned or operated for or by the council shall conform to the policy plan adopted under section 473.149. The council shall contract with private persons for the construction, maintenance, and operation of waste facilities, subject to the bidding requirements of section 473.523, where the facilities are adequate and available for use and competitive with other means of providing the same service. 

Subd. 3.Local restrictions. 
Counties and local units of government may impose conditions respecting the construction, operation, inspection, monitoring, and maintenance of a waste facility of the council and conditions respecting the sale, gift, delivery, storage, use, and disposal of sewage sludge of the council on private property as a soil conditioner or amendment, but only in the manner and only to the extent authorized and approved by the council and the Pollution Control Agency as being consistent with the establishment and use of the council's waste facilities and the disposal of the council's sewage sludge on private property in accordance with the council's plan, adopted under Minnesota Statutes 1992, section 473.153, and agency permits and rules. Counties may exercise the enforcement powers granted under section 473.811, subdivision 5c, in the manner and to the extent authorized and approved in accordance with this subdivision. 

Subd. 4.Technical monitoring; sewage sludge disposal. 
Each sewage sludge disposal facility of the council, or site used for the disposal of sewage sludge of the council, shall be required to have an agency permit issued pursuant to agency rules for permitting sewage sludge disposal facilities and sites. Each permit shall require a regular monitoring and testing program to be carried out by the council. A regular inspection program shall be conducted by the agency or a county under contract to the agency. The council shall reimburse the agency quarterly for the cost of the program, and the amounts reimbursed are hereby appropriated to the agency for the purposes of the program. The council shall attempt to the greatest practical extent to provide a sludge quality that permits desired nutrient loadings and minimizes elements not essential for plant growth when sludge is disposed of on private property as a soil conditioner or amendment. The council shall provide recipients with information on the facility generating the sludge and the content of the sludge taken from its various treatment facilities. 

473.517 ALLOCATION OF COSTS.Subdivision 1.Allocation method. 
Except as provided in subdivision 3, the estimated costs of operation, maintenance, and debt service of the metropolitan disposal system to be paid by the council in each fiscal year, and the costs of acquisition and betterment of the system which are to be paid during the year from funds other than bond proceeds, including all expenses incurred by the council pursuant to sections 473.501 to 473.545, are referred to in this section as current costs, and shall be allocated among and paid by all local government units which will discharge sewage, directly or indirectly, into the metropolitan disposal system during the budget year according to an allocation method determined by the council. The allocated costs may include an amount for a reserve or contingency fund and an amount for cash flow management. The cash flow management fund so established must not exceed five percent of the council's total wastewater services operating budget. 

Subd. 3.Allocation of treatment, interceptor costs; reserved capacity. 
(a) In preparing each budget the council shall estimate the current costs of acquisition, betterment, and debt service, only, of the treatment works in the metropolitan disposal system which will not be used to total capacity during the budget year, and the percentage of such capacity which will not be used, and shall deduct the same percentage of such treatment works costs from the current costs allocated under subdivision 1. The council shall also estimate the current costs of acquisition, betterment, and debt service, only, of the interceptors in the metropolitan disposal system that will not be used to total capacity during the budget year, shall estimate the percentage of the total capacity that will not be used, and shall deduct the same percentage of interceptor costs from the current costs allocated under subdivision 1. The total amount so deducted with respect to all treatment works and interceptors in the system shall be allocated among and paid by the respective local government units in the metropolitan area through a metropolitan sewer availability charge for each new connection or increase in capacity demand to the metropolitan disposal system within each local government unit. Amounts collected through the metropolitan sewer availability charge (SAC) must be deposited in the council's wastewater reserve capacity fund. Each fiscal year an amount from the wastewater reserve capacity fund shall be transferred to the wastewater operating fund for the reserved capacity costs described in this paragraph. For the purposes of this subdivision, the amount transferred from the wastewater reserve capacity fund to the wastewater operating fund shall be referred to as the "SAC transfer amount." 

(b) If, after appropriate study and a public hearing, the council determines for the next fiscal year that a reduction of the SAC transfer amount is necessary or desirable to ensure adequate funds remain in the wastewater reserve capacity fund, based on a goal of maintaining at least the next year's estimated SAC transfer amount in the wastewater reserve capacity fund, the council may reduce the SAC transfer amount for that fiscal year. If the council reduces the SAC transfer amount for the next fiscal year, the council must then increase the metropolitan sewer availability charge not less than the greater of six percent or the annual percentage change in the Consumer Price Index for the metropolitan region for the previous year plus three percentage points. For the purposes of this subdivision, any reduction in the SAC transfer amount shall be referred to as the "SAC transfer deficit." The provisions of this paragraph expire at the end of calendar year 2015. 

(c) The council will record on a cumulative basis the total SAC transfer deficit. In any year that the wastewater reserve capacity fund has a year-end balance of at least two years' estimated SAC transfer amount, the council shall increase the subsequent annual SAC transfer amount in excess of the amount required by paragraph (a) with the goal of eliminating the cumulative total SAC transfer deficit. The annual amount by which the council increases the SAC transfer amount shall be determined by the council after appropriate study and a public hearing. 

Subd. 6.Deferment of payments. 
(a) Upon request of a local government unit, the council may provide for the deferment of payment of all or part of the allocated costs that are allocated by the council to that local government unit in any year pursuant to subdivision 1, repayable at the time or times specified by the council, with interest as determined by the council. A deferment must not result in an increase to the allocated costs which are allocated by the council to other local government units in any year pursuant to subdivision 1. 

(b) Upon request of a local government unit, the council may provide for the deferment of payment of all or part of the allocated costs which are allocated by the council to a local government unit in any year pursuant to subdivision 3, repayable at such time or times as the council shall specify, with interest at the approximate average annual rate borne by council bonds outstanding at the time of the deferment, as determined by the council. Such deferred costs shall be allocated to and paid by all local government units in the metropolitan area which will discharge sewage, directly or indirectly, into the metropolitan disposal system in the budget year for which the deferment is granted, in the same manner and proportions as costs are allocated under subdivision 1. 

Subd. 10.Direct charging of industrial users. 
(a) The term "industrial discharger" for the purposes of this subdivision means a recipient of wastewater treatment services that is required by council rules or procedures to have a permit issued by the council in order to discharge sewage to the metropolitan disposal system. 

(b) The council may directly impose on all or any category of industrial dischargers all or any portion of the costs that would otherwise be allocated among and paid by local government units under subdivision 1. Any amounts imposed directly on industrial dischargers by the council under this subdivision must be deducted from the amounts to be allocated among and paid by local government units under subdivision 1, and any charges imposed by a local government unit for the same purpose are of no further force and effect from and after the effective date of the council's direct charges. Charges imposed under this subdivision are in addition to any other charges imposed on industrial dischargers by a local government unit and must be paid by the industrial discharger at such intervals as may be established by the council. The council may impose interest charges upon delinquent payments. 

(c) Charges by the council to industrial dischargers under this subdivision including any interest charges, as well as any other charges or related fees owed by the industrial discharger pursuant to a discharge permit issued by the council for the subject property, are a charge jointly and severally against the owners, lessees, and occupants of the property served. The council may certify such unpaid amounts to the appropriate county auditor as a tax for collection as other taxes are collected on the property served. The proceeds of any tax collected pursuant to the council's certification must be paid by the county treasurer to the council when collected. Certification does not preclude the council from recovery of delinquent amounts and interest under any other available remedy. 

473.519 1972 U.S. WATER POLLUTION CONTROL ACT: USE CHARGE SHARES.
Each local government unit shall adopt a system of charges for the use and availability of the metropolitan disposal system which will assure that each recipient of waste treatment services within or served by the unit will pay its proportionate share of the costs allocated to the unit by the council under section 473.517, as required by the federal Water Pollution Control Act amendments of 1972, and any regulations issued pursuant thereto. Each system of charges shall be submitted to the council if requested by the council. 

473.521 PAYMENTS TO COUNCIL.Subdivision 1.Amounts due council, when payable. 
Charges payable to the council by local government units may be made payable at such times during each year as the council determines, but such dates shall be fixed with reference to the dates on which tax, assessment, and revenue collections become available to the government units required to pay such charges. 

Subd. 2.Component municipalities, obligations to council. 
Each government unit shall pay to the council all sums charged to it as provided in section 473.517, at the times and in the manner determined by the council. The governing body of each such government unit shall take all action that may be necessary to provide the funds required for such payments and to make the same when due. 

Subd. 3.Powers of government units. 
To accomplish any duty imposed on it by the council, the governing body of every government unit in the metropolitan area may exercise the powers granted any municipality by chapters 117, 412, 429, 475, sections 115.46, 444.075 and 471.59. 

Subd. 4.Deficiency tax levies. 
If the governing body of any local government unit fails to meet any payment to the council hereunder when due, the Metropolitan Council may certify to the auditor of the county in which the government unit is located the amount required for payment of such amount with interest at six percent per annum. The auditor shall levy and extend such amount as a tax upon all taxable property in the government unit for the next calendar year, free from any existing limitations imposed by law or charter. Such tax shall be collected in the same manner as the general taxes of the government unit, and the proceeds thereof, when collected, shall be paid by the county treasurer to the treasurer of the council and credited to the government unit for which the tax was levied. 

473.523 CONSTRUCTION CONTRACTS SUBJECT TO MUNICIPAL BID LAW.Subdivision 1.Contracts for metropolitan disposal system. 
All contracts for construction work, or for the purchase of materials, supplies, or equipment relating to the metropolitan disposal system shall be made as provided in section 471.345, subdivisions 3 to 6. Contracts subject to section 471.345, subdivision 3, shall be made by the council by publishing once in a legal newspaper or trade paper published in a city of the first class not less than two weeks before the last day for submission of bids, notice that bids or proposals will be received. Such notice shall state the nature of the work or purchase and the terms and conditions upon which the contract is to be awarded, and a time and place where such bids will be received, opened, and read publicly. After such bids have been duly received, opened, read publicly, and recorded, the council shall award such contract to the lowest responsible bidder or it may reject all bids and readvertise. Each contract shall be duly executed in writing and the party to whom the contract is awarded shall give sufficient bond or security to the council for the faithful performance of the contract as required by law. The council shall have the right to set qualifications and specifications and to require bids to meet all such qualifications and specifications before being accepted. If the council by an affirmative vote of two-thirds of its members declares that an emergency exists requiring the immediate purchase of materials or supplies at a cost in excess of the amount specified in section 471.345, subdivision 3, or in making emergency repairs, it shall not be necessary to advertise for bids. 

Subd. 1a.Contracts over $50,000; best value alternative. 
As an alternative to the procurement method described in subdivision 1, the council may issue a request for proposals and award the contract to the vendor or contractor offering the best value under a request for proposals as described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c). 

473.524 CAPITAL INTENSIVE PUBLIC SERVICES.
The council may exercise the authority it had under Minnesota Statutes 2012, sections 471A.01 to 471A.12, for the purposes of fulfilling its wastewater services responsibilities under sections 473.501 to 473.549. The wastewater facilities designed or built under the authority provided by Minnesota Statutes 2012, sections 471A.01 to 471A.12, deemed necessary by the council to accomplish its responsibilities under this chapter must remain under the ownership of the council. 

473.541 DEBT OBLIGATIONS.Subdivision 1.Certificates of indebtedness. 
At any time or times after approval of an annual budget, and in anticipation of the collection of tax and other revenues appropriated in the budget, the council may by resolution authorize the issuance, negotiation, and sale, in such form and manner and upon such terms as it may determine, of general obligation certificates of indebtedness in aggregate principal amounts not exceeding 50 percent of the total amount of such appropriations, and maturing not later than April 1 following the close of the budget year. All receipts of tax and other revenues included in the budget, after the expenditure of appropriated funds, shall be irrevocably appropriated to a special fund to pay the principal of and the interest on the certificates when due. If for some reason the anticipated revenues are insufficient to pay the certificates and interest thereon when due, the council shall levy a tax in the amount of the deficiency on all taxable property in the metropolitan area, and shall appropriate this amount to the special fund, to be credited thereto from the first tax and other revenues received in the following budget year. 

Subd. 2.Emergency certificates. 
If in any budget year the receipts of tax and other revenues should from some unforeseen cause become insufficient to pay the council's current wastewater services expenses, or if any calamity or other public emergency should subject it to the necessity of making extraordinary wastewater services expenditures, the council may make an emergency appropriation of an amount sufficient to meet the deficiency and may authorize the issuance, negotiation, and sale of certificates of indebtedness in this amount in the same manner and upon the same conditions as provided in subdivision 1. The council may levy on all taxable property in the metropolitan area a tax sufficient to pay the certificates and interest thereon, and shall appropriate all collections of such tax to a special fund created for that purpose. The certificates may mature not later than April in the year following the year in which any levied tax is collectible. 

Subd. 3.General obligation bonds. 
The council may by resolution authorize the issuance of general obligation bonds for the acquisition or betterment of any interceptors or treatment works determined to be necessary or desirable for the metropolitan disposal system, or for the refunding of outstanding bonds, certificates of indebtedness, or judgments. The council shall provide for the issuance and sale and for the security of such bonds in the manner provided in chapter 475, and shall have the same powers and duties as a municipality issuing bonds under that law, except that no election shall be required and the net debt limitations in chapter 475 shall not apply to such bonds. The council may also pledge for the payment of such bonds any revenues receivable under section 473.517. 

Subd. 4.Revenue bonds. 
(a) The council may, by resolution, authorize the issuance of revenue bonds for any purpose for which general obligation bonds may be issued under subdivision 3. The bonds shall be sold, issued, and secured in the manner provided in chapter 475 for bonds payable solely from revenues, except as otherwise provided in this subdivision, and the council shall have the same powers and duties as a municipality and its governing body in issuing bonds under that chapter. The bonds shall be payable from and secured by a pledge of all or any part of revenues receivable under section 473.517, shall not, and shall state they do not, represent or constitute a general obligation or debt of the council, and shall not be included in the net debt of any city, county, or other subdivision of the state for the purpose of any net debt limitation. The proceeds of the bonds may be used to pay credit enhancement fees. 

(b) The bonds may be secured by a bond resolution, or a trust indenture entered into by the council with a corporate trustee within or outside the state, which shall define the revenues and bond proceeds pledged for the payment and security of the bonds. The pledge shall be a valid charge on the revenues received under section 473.517. No mortgage of or security interest in any tangible real or personal property shall be granted to the bondholders or the trustee, but they shall have a valid security interest in the revenues and bond proceeds received by the council and pledged to the payment of the bonds as against the claims of all persons in tort, contract, or otherwise, irrespective of whether such parties have notice thereof and without possession or filing as provided in the Uniform Commercial Code or any other law, subject, however, to the rights of the holders of any general obligation bonds issued under subdivision 3. In the bond resolution or trust indenture, the council may make such covenants as it determines to be reasonable for the protection of the bondholders, including a covenant to issue general obligation bonds to refund the revenue bonds if and to the extent required to pay principal and interest on the bonds and to certify a deficiency tax levy as provided in section 473.521, subdivision 4. 

(c) Neither the council, nor any council member, officer, employee, or agent of the council, nor any person executing the bonds shall be liable personally on the bonds by reason of their issuance. The bonds shall not be payable from nor a charge upon any funds other than the revenues and bond proceeds pledged to the payment thereof, nor shall the council be subject to any liability thereon or have the power to obligate itself to pay or to pay the bonds from funds other than the revenues and bond proceeds pledged, and no holder or holders of bonds shall ever have the right to compel any exercise of the taxing power of the council (except any deficiency tax levy the council covenants to certify under section 473.521, subdivision 4) or any other public body, to the payment of principal of or interest on the bonds, nor to enforce payment thereof against any property of the council or other public body other than that expressly pledged for the payment thereof. 

473.542 DEPOSITORIES.
The council shall from time to time designate one or more national or state banks, or trust companies authorized to do a banking business, as official depositories for moneys of the council, and thereupon shall require the treasurer to deposit all or a part of such moneys in such institutions. Such designation shall be in writing and shall set forth all the terms and conditions upon which the deposits are made, and shall be signed by the chair and treasurer, and made a part of the minutes of the council. Any bank or trust company so designated shall qualify as a depository by furnishing a corporate surety bond or collateral in the amounts required by section 118A.03. However, no bond or collateral shall be required to secure any deposit insofar as it is insured under federal law. 

473.543 MONEYS, ACCOUNTS AND INVESTMENTS.Subdivision 1.Disposed of as budgeted; pledges. 
All moneys from wastewater services operations received by the council shall be deposited or invested by the treasurer and disposed of as the council may direct in accordance with its wastewater services budget; provided that any moneys that have been pledged or dedicated by the Metropolitan Council to the payment of obligations or interest thereon or expenses incident thereto, or for any other specific purpose authorized by law, shall be paid by the treasurer into the fund to which they have been pledged. 

Subd. 2.Accounts. 
The council's treasurer shall establish such funds and accounts as may be necessary or convenient to handle the receipts and disbursements of the council in an orderly fashion. 

Subd. 3.Where to deposit; how to invest. 
The moneys on hand in said funds and accounts may be deposited in the official depositories of the council or invested as hereinafter provided. The amount thereof not currently needed or required by law to be kept in cash on deposit may be invested in obligations authorized for the investment of public funds by chapter 118A. Such moneys may also be held under certificates of deposit issued by any official depository of the council. 

Subd. 4.Bond proceeds. 
The use of proceeds of all bonds issued by the council for the acquisition and betterment of interceptors or treatment works, and the use, other than investment, of all moneys on hand in any sinking fund or funds of the council, shall be governed by the provisions of chapter 475, and the provisions of resolutions authorizing the issuance of such bonds. 

473.545 PROPERTY EXEMPT FROM TAXATION.
Any properties, real or personal, owned, leased, controlled, used, or occupied by the council for any purpose referred to in sections 473.501 to 473.549 are declared to be acquired, owned, leased, controlled, used and occupied for public, governmental, and municipal purposes, and shall be exempt from taxation by the state or any political subdivision of the state, except to the extent that the property is subject to the sales and use tax under chapter 297A, provided that such properties shall be subject to special assessments levied by a political subdivision for a local improvement in amounts proportionate to and not exceeding the special benefit received by the properties from such improvement. No possible use of any such properties in any manner different from their use as part of the metropolitan disposal system at the time shall be considered in determining the special benefit received by such properties. All such assessments shall be subject to final confirmation by the Metropolitan Council, whose determination of the benefits shall be conclusive upon the political subdivision levying the assessment. 

473.547 TAX LEVIES.
The council shall have power to levy taxes for debt service of the metropolitan disposal system upon all taxable property within the metropolitan area, without limitation of rate or amount and without affecting the amount or rate of taxes which may be levied by the council for other purposes or by any local government unit in the area. The council shall also have power to levy taxes as provided in section 473.521. Each of the county auditors shall annually assess and extend upon the tax rolls in the auditor's county the portion of the taxes levied by the council in each year which is certified to the auditor by the council. Each county treasurer shall collect and make settlement of such taxes with the council in the same manner as with other political subdivisions. 

473.549 RELATION TO EXISTING LAWS.
The provisions of sections 473.501 to 473.549 shall be given full effect notwithstanding the provisions of any law not consistent therewith. The powers conferred on the council under sections 473.501 to 473.545 shall in no way diminish or supersede the powers conferred on the Pollution Control Agency by sections 103F.701 to 103F.755 and chapters 115 and 116. 

473.621 POWERS OF CORPORATION.Subd. 6.Capital projects; review. 
All Minneapolis-St. Paul International Airport capital projects of the commission requiring the expenditure of more than $5,000,000 shall be submitted to the Metropolitan Council for review. All other capital projects of the commission requiring the expenditure of more than $2,000,000 shall be submitted to the Metropolitan Council for review. No such project that has a significant effect on the orderly and economic development of the metropolitan area may be commenced without the approval of the Metropolitan Council. In addition to any other criteria applied by the Metropolitan Council in reviewing a proposed project, the council shall not approve a proposed project unless the council finds that the commission has completed a process intended to provide affected municipalities the opportunity for discussion and public participation in the commission's decision-making process. An "affected municipality" is any municipality that (1) is adjacent to a commission airport, (2) is within the noise zone of a commission airport, as defined in the Metropolitan Development Guide, or (3) has notified the commission's secretary that it considers itself an "affected municipality." The council must at a minimum determine that the commission: 

(a) provided adequate and timely notice of the proposed project to each affected municipality; 

(b) provided to each affected municipality a complete description of the proposed project; 

(c) provided to each affected municipality notices, agendas, and meeting minutes of all commission meetings, including advisory committee meetings, at which the proposed project was to be discussed or voted on in order to provide the municipalities the opportunity to solicit public comment and participate in the project development on an ongoing basis; and 

(d) considered the comments of each affected municipality. 

473.834 DEBT SERVICE; SOLID WASTE BONDS.Subdivision 1.Certain cities and towns; exemption. 
Each city or town in which a solid waste disposal facility is operating after January 1, 1980, shall be permanently exempt from the payments required by this section, if the facility is a commercial facility disposing of mixed municipal solid waste under an agency permit. 

Subd. 2.Allocation of debt service. 
The annual debt service on the council's solid waste bonds, issued under Minnesota Statutes 1990, section 473.831, shall be annually apportioned and certified by the council to each county in the metropolitan area, in the proportion that the net tax capacity of all taxable property within each county bears to the net tax capacity of the taxable property in all the counties, except that the apportionment to each county shall first be adjusted to reflect exemptions from payment required by subdivision 1. 

473.851 LEGISLATIVE FINDINGS AND PURPOSE.
The legislature finds and declares that the local governmental units within the metropolitan area are interdependent, that the growth and patterns of urbanization within the area create the need for additional state, metropolitan and local public services and facilities and increase the danger of air and water pollution and water shortages, and that developments in one local governmental unit may affect the provision of regional capital improvements for sewers, transportation, airports, water supply, and regional recreation open space. Since problems of urbanization and development transcend local governmental boundaries, there is a need for the adoption of coordinated plans, programs and controls by all local governmental units in order to protect the health, safety and welfare of the residents of the metropolitan area and to ensure coordinated, orderly, and economic development. Therefore, it is the purpose of sections 462.355, 473.175, and 473.851 to 473.871 to (1) establish requirements and procedures to accomplish comprehensive local planning with land use controls consistent with planned, orderly and staged development and the metropolitan system plans, and (2) to provide assistance to local governmental units within the metropolitan area for the preparation of plans and official controls appropriate for their areas and consistent with metropolitan system plans. 

473.852 DEFINITIONS.Subdivision 1.Terms. 
As used in sections 462.355, 473.175, and 473.851 to 473.871, the following terms shall have the meanings given them. 

Subd. 2.Advisory Metropolitan Land Use Committee or advisory committee. 
"Advisory Metropolitan Land Use Committee" or "advisory committee" means an advisory committee established by the Metropolitan Council pursuant to section 473.853. 

Subd. 3.Applicable planning statute. 
"Applicable planning statute" means sections 394.21 to 394.37 for counties and sections 462.351 to 462.364 for cities and towns. 

Subd. 4.Capital improvement program. 
"Capital improvement program" means an itemized program for a five-year prospective period, and any amendments thereto, subject to at least biennial review, setting forth the schedule, timing, and details of specific contemplated capital improvements by year, together with their estimated cost, the need for each improvement, financial sources, and the financial impact that the improvements will have on the local governmental unit. 

Subd. 5.Comprehensive plan. 
"Comprehensive plan" means the comprehensive plan of each local governmental unit described in sections 473.858 to 473.862, and any amendments to the plan. 

Subd. 6.Fiscal devices. 
"Fiscal devices" means the valuation of property pursuant to section 273.111, the designation of urban and rural service districts, pursuant to section 272.67, and the establishment of development districts pursuant to sections 469.124 to 469.133, and any other statutes authorizing the creation of districts in which the use of tax increment bonding is authorized. 

Subd. 7.Local governmental unit or unit. 
"Local governmental unit" or "unit" means all cities, counties and towns lying in whole or in part within the metropolitan area, but does not include school districts. 

Subd. 8.Metropolitan system plans. 
"Metropolitan system plans" means the transportation portion of the Metropolitan Development Guide, and the policy plans, and capital budgets for metropolitan wastewater service, transportation, and regional recreation open space. 

Subd. 9.Official controls or controls. 
"Official controls" or "controls" means ordinances and rules which control the physical development of a city, county or town or any part thereof or any detail thereof and implement the general objectives of the comprehensive plan. Official controls may include ordinances establishing zoning, subdivision controls, site plan regulations, sanitary codes, building codes and official maps. 

Subd. 10.Private sewer facility. 
"Private sewer facility" means a single lot, multiple lot or other sewage collection or treatment facility owned, constructed or operated by any person other than a local governmental unit or the council. 

473.853 ADVISORY COMMITTEE.
The council shall establish an advisory metropolitan land use committee pursuant to section 473.127, comprised of 16 members, one from each council district, and as many additional members as are necessary to provide representation from each metropolitan county, plus a chair. At least one-half of the members of the advisory committee shall be elected officials of local governmental units. The members shall be appointed for the same period as the term of the council member for the district in which the member resides. 

473.854 GUIDELINES.
The council shall prepare and adopt guidelines and procedures relating to the requirements and provisions of sections 462.355, 473.175, and 473.851 to 473.871 which will provide assistance to local governmental units in accomplishing the provisions of sections 462.355, 473.175, and 473.851 to 473.871. 

473.856 METROPOLITAN SYSTEM STATEMENTS; AMENDMENTS.
The council shall prepare and transmit to each affected local governmental unit a metropolitan system statement when the council updates or revises its comprehensive development guide for the metropolitan area in conjunction with the decennial review required under section 473.864, subdivision 2, and when the council amends or modifies a metropolitan system plan. The statement shall contain information relating to the unit and appropriate surrounding territory that the council determines necessary for the unit to consider in reviewing the unit's comprehensive plan. The statement may include: 

(1) the timing, character, function, location, projected capacity, and conditions on use for existing or planned metropolitan public facilities, as specified in metropolitan system plans, and for state and federal public facilities to the extent known to the council; and 

(2) the population, employment, and household projections which have been used by the council as a basis for its metropolitan system plans. 

Within nine months after receiving a system statement for an amendment to a metropolitan system plan, and within three years after receiving a system statement issued in conjunction with the decennial review required under section 473.864, subdivision 2, each affected local governmental unit shall review its comprehensive plan to determine if an amendment is necessary to ensure continued conformity with metropolitan system plans. If an amendment is necessary, the governmental unit shall prepare the amendment and submit it to the council for review pursuant to sections 462.355, 473.175, and 473.851 to 473.871. 

473.857 SYSTEM STATEMENTS; RECONCILIATION PROCEDURES.Subdivision 1.Request for hearing. 
If a local governmental unit and the council are unable to resolve disagreements over the content of a system statement, the unit may by resolution request that a hearing be conducted by the advisory committee or by the state Office of Administrative Hearings for the purpose of considering amendments to the system statement. The request shall be made by the unit within 60 days after receipt of the system statement and shall be accompanied by a description of the disagreement together with specified proposed amendments to the system statement. If no request for a hearing is received by the council within 60 days, the statement shall be final. 

Subd. 2.Within 60 days; report. 
A hearing shall be conducted within 60 days after the request, provided that the advisory committee or the administrative law judge shall consolidate hearings on related requests. The 60-day period within which the hearing shall be conducted may be extended or suspended by mutual agreement of the council and the local governmental unit. The hearing shall not consider the need for or reasonableness of the metropolitan system plans or parts thereof. The hearing shall afford all interested persons an opportunity to testify and present evidence. The advisory committee or administrative law judge may employ the appropriate technical and professional services of the office of dispute resolution for the purpose of evaluating disputes of fact. The proceedings shall not be deemed a contested case. Within 30 days after the hearing, the advisory committee or the administrative law judge shall report to the council respecting the proposed amendments to the system statements. The report shall contain findings of fact, conclusions, and recommendations and shall apportion the costs of the proceedings among the parties. 

Subd. 3.Final determination. 
Within 30 days of receipt of the report, the council, by resolution containing findings of fact and conclusions, shall make a final determination respecting the proposed amendments. At any point in the reconciliation procedure established by this section, the council and a local governmental unit may resolve their disagreement by stipulation. 

473.858 COMPREHENSIVE PLANS; LOCAL GOVERNMENTAL UNITS.Subdivision 1.No conflicting zoning, fiscal device, official control. 
Within nine months following the receipt of a metropolitan system statement for an amendment to a metropolitan system plan and within three years following the receipt of a metropolitan system statement issued in conjunction with the decennial review required under section 473.864, subdivision 2, every local governmental unit shall have reviewed and, if necessary, amended its comprehensive plan in accordance with sections 462.355, 473.175, and 473.851 to 473.871 and the applicable planning statute and shall have submitted the plan to the Metropolitan Council for review pursuant to section 473.175. The provisions of sections 462.355, 473.175, and 473.851 to 473.871 shall supersede the provisions of the applicable planning statute wherever a conflict may exist. If the comprehensive municipal plan is in conflict with the zoning ordinance, the zoning ordinance shall be brought into conformance with the plan by local government units in conjunction with the review and, if necessary, amendment of its comprehensive plan required under section 473.864, subdivision 2. A local government unit shall not adopt any fiscal device or official control which is in conflict with its comprehensive plan, including any amendments to the plan, or which permits activity in conflict with metropolitan system plans, as defined by section 473.852, subdivision 8. The comprehensive plan shall provide guidelines for the timing and sequence of the adoption of official controls to ensure planned, orderly, and staged development and redevelopment consistent with the comprehensive plan. For purposes of this section, a fiscal device or official control shall not be considered to be in conflict with a local government unit's comprehensive plan or to permit an activity in conflict with metropolitan system plans if such fiscal device or official control is adopted to ensure the planned, orderly, and staged development of urbanization or redevelopment areas designated in the comprehensive plan pursuant to section 473.859, subdivision 5. 

Subd. 2.Adjacent review, comment. 
Local governmental units shall submit their proposed plans to adjacent governmental units, affected special districts lying in whole or in part within the metropolitan area, and affected school districts for review and comment at least six months prior to submission of the plan to the council and shall submit copies to them on the submission of the plan to the council. For minor plan amendments, the council may prescribe a shorter review and comment period, or may waive the review and comment period if the minor plan amendments involve lands that are not contiguous to other local governmental units. 

Subd. 3.When to council. 
The plans shall be submitted to the council following recommendation by the planning agency of the unit and after consideration but before final approval by the governing body of the unit. 

Subd. 4.Status of old, new programs, plans, controls. 
Comprehensive plans, capital improvement programs, sewer policy plans and official controls of local governmental units adopted prior to the requirements of sections 462.355, 473.175, and 473.851 to 473.871 shall remain in force and effect until amended, repealed or superseded by plans or controls adopted pursuant to sections 462.355, 473.175, and 473.851 to 473.871. Existing comprehensive plans, capital improvement programs, sewer policy plans, and official controls may be amended and new capital improvement programs and official controls may be prepared and adopted prior to the submission to the council of comprehensive plans required by sections 462.355, 473.175, and 473.851 to 473.871. 

473.859 COMPREHENSIVE PLAN CONTENT.Subdivision 1.Contents. 
The comprehensive plan shall contain objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and waters within the jurisdiction of the local governmental unit through 1990 and may extend through any year thereafter which is evenly divisible by five. Each plan shall specify expected industrial and commercial development, planned population distribution, and local public facility capacities upon which the plan is based. Each plan shall contain a discussion of the use of the public facilities specified in the metropolitan system statement and the effect of the plan on adjacent local governmental units and affected school districts. Existing plans and official controls may be used in whole or in part following modification, as necessary, to satisfy the requirements of sections 462.355, 473.175, and 473.851 to 473.871. Each plan may contain an intergovernmental coordination element that describes how its planned land uses and urban services affect other communities, adjacent local government units, the region, and the state, and that includes guidelines for joint planning and decision making with other communities, school districts, and other jurisdictions for siting public schools, building public facilities, and sharing public services. 

Each plan may contain an economic development element that identifies types of mixed use development, expansion facilities for businesses, and methods for developing a balanced and stable economic base. 

The comprehensive plan may contain any additional matter which may be included in a comprehensive plan of the local governmental unit pursuant to the applicable planning statute. 

Subd. 2.Land use plan. 
(a) A land use plan shall include the water management plan required by section 103B.235, and shall designate the existing and proposed location, intensity and extent of use of land and water, including lakes, wetlands, rivers, streams, natural drainage courses, and adjoining land areas that affect water natural resources, for agricultural, residential, commercial, industrial and other public and private purposes, or any combination of such purposes. 

(b) A land use plan shall contain a protection element, as appropriate, for historic sites, the matters listed in the water management plan required by section 103B.235, and an element for protection and development of access to direct sunlight for solar energy systems. 

(c) A land use plan shall also include a housing element containing standards, plans and programs for providing adequate housing opportunities to meet existing and projected local and regional housing needs, including but not limited to the use of official controls and land use planning to promote the availability of land for the development of low and moderate income housing. 

(d) A land use plan shall also include the local government's goals, intentions, and priorities concerning aggregate and other natural resources, transportation infrastructure, land use compatibility, habitat, agricultural preservation, and other planning priorities, considering information regarding supply from the Minnesota Geological Survey Information Circular No. 46. 

Subd. 2a.Application of subdivision 2, paragraph (d). 
Subdivision 2, paragraph (d), applies only to land use plans adopted or amended by the governing body in relation to aggregate or when the governing body is presented with a written application for adoption or amendment of a land use plan relating to aggregate, from a landowner after August 1, 2001, in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. 

Subd. 3.Public facilities plan. 
A public facilities plan shall describe the character, location, timing, sequence, function, use and capacity of existing and future public facilities of the local governmental unit. A public facilities plan must be in at least such detail as may be necessary to establish existing or potential effects on or departures from metropolitan system plans and to protect metropolitan system plans. A public facilities plan shall contain at least the following parts: 

(1) a transportation plan describing, designating and scheduling the location, extent, function and capacity of existing and proposed local public and private transportation services and facilities; 

(2) a sewer policy plan describing, designating and scheduling the areas to be sewered by the public system, the existing and planned capacities of the public system, the standards and conditions under which the installation of private sewer systems will be permitted, and to the extent practicable, the areas not suitable for public or private systems because of public health, safety and welfare considerations; 

(3) a parks and open space plan describing, designating and scheduling the existing and proposed parks and recreation open spaces within the jurisdiction; and 

(4) a water supply plan as described in section 103G.291, subdivision 3. 

Subd. 4.Implementation program. 
An implementation program shall describe public programs, fiscal devices and other specific actions to be undertaken in stated sequence to implement the comprehensive plan and ensure conformity with metropolitan system plans. An implementation program must be in at least such detail as may be necessary to establish existing or potential effects on or departures from metropolitan system plans and to protect metropolitan system plans. An implementation program shall contain at least the following parts: 

(1) a description of official controls, addressing at least the matters of zoning, subdivision, water supply, and private sewer systems, and a schedule for the preparation, adoption, and administration of such controls; 

(2) a capital improvement program for transportation, sewers, parks, water supply, and open space facilities; and 

(3) a housing implementation program, including official controls to implement the housing element of the land use plan, which will provide sufficient existing and new housing to meet the local unit's share of the metropolitan area need for low and moderate income housing. 

Subd. 5.Urbanization and redevelopment areas. 
The comprehensive plans may designate, when appropriate, five-year urbanization areas and shall specify in the capital improvement program the timing and sequence of major local public facilities and in the implementation program official controls which will ensure that urbanization occurs only in urbanization areas and in accordance with the plan. 

The comprehensive plans may designate, when appropriate, redevelopment areas and may, as appropriate, specify in the capital improvement program the timing and sequence of local public facilities and in the implementation program the fiscal devices or official controls that will ensure that redevelopment occurs in accordance with the plan. 

Subd. 6.Plan review. 
The council shall prepare guidelines for the preparation of the water supply plans required in subdivision 3, clause (4). The plans must be submitted to the council as part of the decennial review required under section 473.864, subdivision 2. The council shall review the plans under section 473.175, subdivision 1, after submitting them to affected counties that have adopted groundwater plans under section 103B.255 for their review and comment. 

473.86 CITIES.
Except as provided in the metropolitan system statement, comprehensive plans of cities shall include the matters specified in section 473.859. 

473.861 TOWNS.Subdivision 1.As in section 473.859.  
Except as provided in the metropolitan system statement, comprehensive plans of towns shall include the matters specified in section 473.859. 

Subd. 2.Plan preparation. 
 Each town within the counties of Anoka, Carver, Dakota, Scott, and Washington, authorized to plan under sections 462.351 to 462.364, or under special law, shall by resolution determine whether it will prepare the comprehensive plan for its jurisdiction. Each such town also shall specify, pursuant to agreement with the county within which it is situated, any parts of its plan and official controls, if any, the preparation of which it delegates to the county. 

Subd. 3.Use county. 
Towns within counties which have adopted comprehensive plans applicable to the town shall, to the maximum extent, use county preparation of their comprehensive plans. 

473.862 METRO COUNTIES OTHER THAN HENNEPIN, RAMSEY, ANOKA, AND DAKOTA.Subdivision 1.Contents of plan. 
Comprehensive plans of counties shall contain at least the following: 

(a) Except for the counties of Hennepin, Ramsey, Anoka, and Dakota, a land use plan as specified in section 473.859, subdivision 2, for all unincorporated territory within the county; 

(b) A public facilities plan which shall include all appropriate matters specified in section 473.859, subdivision 3, including a transportation plan, and a description of existing and projected solid waste disposal sites and facilities; 

(c) An implementation program, as specified in section 473.859, subdivision 4. 

Subd. 2.Town planning. 
Each county other than Hennepin, Ramsey, Anoka, and Dakota shall prepare, with the participation and assistance of the town, the comprehensive plan for any town within the county which has not taken action by resolution pursuant to section 473.861, subdivision 2 and shall prepare all or part of any plan delegated to it pursuant to section 473.861, subdivision 2. 

Subd. 3.Towns that cannot plan. 
Each county other than Hennepin, Ramsey, Anoka, and Dakota shall prepare, with the participation and assistance of the town, the comprehensive plan for each town within the county not authorized to plan under sections 462.351 to 462.364, or under special law. 

473.864 PLANS; ADOPTION; AMENDMENT.Subdivision 1.When adopted. 
Each local governmental unit shall adopt its comprehensive plan with required modifications within nine months following a final decision, order, or judgment made pursuant to section 473.866. 

Subd. 2.Decennial review. 
By December 31, 1998, and at least once every ten years thereafter, each local governmental unit shall review and, if necessary, amend its entire comprehensive plan and its fiscal devices and official controls. Such review and, if necessary, amendment shall ensure that, as provided in section 473.865, the fiscal devices and official controls of each local government unit are not in conflict with its comprehensive plan. Upon completion of review and, if necessary, amendment of its comprehensive plan, fiscal devices, and official controls as required by this section, each local government unit shall either: 

(a) submit to the Metropolitan Council the entire current comprehensive plan together with written certification by the governing body of the local government unit that it has complied with this section and that no amendments to its plan or fiscal devices or official controls are necessary; or 

(b)(1) submit the entire updated comprehensive plan and amendment or amendments to its comprehensive plan necessitated by its review to the Metropolitan Council for review; and 

(2) submit the amendment or amendments to its fiscal devices or official controls necessitated by its review to the Metropolitan Council for information purposes as provided by section 473.865. 

Except as otherwise provided in this paragraph, local governments shall consider, in preparing their updated comprehensive plans, amendments to metropolitan system plans in effect on December 31, 1996. For metropolitan system plans, or amendments thereto, adopted after December 31, 1996, local governments shall review their comprehensive plans to determine if an amendment is necessary to conform to the metropolitan system plans. If an amendment is necessary, the local government shall prepare the amendment and submit it to the council for review by September 30, 1999, or nine months after the council transmits the metropolitan system plan amendment to the local government, whichever is later. 

The periodic review required in this subdivision shall be in addition to the review required by section 473.856. 

The Metropolitan Council may grant extensions to local government units in order to allow local government units to complete the review and, if necessary, amendment required by this subdivision. Such extensions, if granted by the Metropolitan Council, must include a timetable and plan for completion of the review and amendment. 

Amendments to comprehensive plans of local governmental units shall be prepared, submitted, and adopted in conformance with guidelines adopted by the Metropolitan Council pursuant to section 473.854. 

473.865 ADOPTION; CONFLICTS, AMENDMENT OF CONTROLS, DEVICES.Subdivision 1.Control copies to council. 
Each local governmental unit shall adopt official controls as described in its adopted comprehensive plan and shall submit copies of the official controls to the council within 30 days following adoption thereof, for information purposes only. 

Subd. 2.No conflict with plans. 
A local governmental unit shall not adopt any official control or fiscal device which is in conflict with its comprehensive plan or which permits activity in conflict with metropolitan system plans. 

Subd. 3.Amendments. 
If an official control conflicts with a comprehensive plan as the result of an amendment to the plan, the official control shall be amended by the unit within nine months following the amendment to the plan so as to not conflict with the amended comprehensive plan. 

473.866 CONTESTED CASES; ADMINISTRATIVE AND JUDICIAL REVIEW.
The council's decision to require modification under section 473.175 may be contested by the affected local governmental unit. The unit shall have 60 days within which to request a hearing on the council's decision to require modification. If within 60 days the unit has not requested a hearing, the council shall make its final decision with respect to the required modifications. If an affected unit requests a hearing, the request for hearing shall be granted, and the hearing shall be conducted within 60 days by the state Office of Administrative Hearings in the manner provided by chapter 14 for contested cases. The 60-day period within which the hearing shall be conducted may be extended by mutual agreement of the council and the affected local governmental unit. The subject of the hearing shall not extend to questions concerning the need for or reasonableness of the metropolitan system plans or any part thereof. In the report of the administrative law judge the costs of the hearing shall be apportioned among the parties to the proceeding. Within 30 days after the receipt of the report the council shall, by resolution containing findings of fact and conclusions, make a final decision with respect to the required modifications of the comprehensive plan. Any party to the proceeding aggrieved by the decision of the council may appeal to the court in the manner provided in chapter 14 for contested cases. The record on appeal shall consist of: (1) the administrative law judge's record and report, and (2) the findings, conclusions and final decision of the council. The scope of review shall be that of section 14.69, provided that: (1) the court shall not give preference to either the administrative law judge's record and report or the findings, conclusions and final decision of the council, and (2) the decision of the court shall be based upon a preponderance of the evidence as contained in the record on appeal. The costs of the appeal shall be apportioned by the court. 

473.867 PLANNING ASSISTANCE; GRANTS; LOANS.Subdivision 1.Advisory materials, models, assistance. 
The council shall prepare and provide advisory materials, model plan provisions and official controls, and on the request of a local governmental unit may provide assistance, to accomplish the purposes of sections 462.355, 473.175, and 473.851 to 473.871. The council may also provide specific technical and legal assistance in connection with the preparation, adoption and defense of plans, programs, and controls. 

Subd. 2.Planning assistance fund. 
The council may establish a planning assistance fund as a separate bookkeeping account in its general fund for the purpose of making grants and loans to local governmental units under this section. The council shall adopt uniform procedures for the award, disbursement and repayment of grants and loans. 

Subd. 3.Loans, grants. 
Local governmental units may apply, contract for and receive loans and grants as provided herein, and the provisions of chapter 475 shall not apply to loans made pursuant hereto. Applications for grants and loans shall be submitted to the council describing the activities for which the grant or loan funds will be used; the persons which the grantee or borrower plans to use in performing the grant contract; services and activities which will be paid for by funds of the grantee or borrower; the grantee or borrower's need and ability to pay for the contract services; and other information as the council may reasonably request. Grants and loans shall be made subject to contracts between the council and the recipient specifying the use and disbursement of the funds and, for loans, the terms and conditions of repayment, and other appropriate matters. In making grants and loans, the council shall base its decisions on the recipient's demonstrated need and available financial resources. 

Subd. 5.Loan terms. 
Loans made by the council shall be payable on such terms and conditions as the council determines appropriate, provided that no loan shall carry an interest rate nor be for a term in excess of five years. Funds received in payment of loans shall be credited to the planning assistance fund and shall be used for additional loans or grants under this section. 

Subd. 6.Assistance for plan updates. 
The council shall give priority for the use of loan and grant funds available under this section to local governmental units for review and amendment of local comprehensive plans and fiscal devices and official controls, as required by section 473.864, subdivision 2. The council shall consult with affected local government units to evaluate the need for technical and financial assistance. 

473.869 EXTENSION.
A local governmental unit may by resolution request that the council extend the time for fulfilling the requirements of sections 462.355, subdivision 1a, 473.175, and 473.851 to 473.871. A request for extension shall be accompanied by a description of the activities previously undertaken by a local governmental unit in fulfillment of the requirements of sections 462.355, 473.175, and 473.851 to 473.871, and an explanation of the reasons necessitating and justifying the request. Upon a finding of exceptional circumstances or undue hardship, the council may, in its discretion, grant by resolution a request for extension and may attach reasonable requirements or conditions to the extension. 

473.87 LEVY FOR INCREASED COSTS.
The increased costs to a municipality of implementing sections 473.175; 473.858, subdivisions 1 to 3; 473.859 to 473.862; and 473.866 shall be deemed a levy and the proceeds of any tax levied under this section shall be deposited in the municipal treasury in a separate fund and expended only for the purposes authorized by this section. 

473.871 NEW MUNICIPAL SEWER SYSTEMS.
Notwithstanding the provisions of sections 462.355, 473.175, and 473.851 to 473.871 the council shall have no authority under this chapter to require a local governmental unit to construct a new sewer system. 

473.915 PROCUREMENTS.
All proposed Metropolitan Council procurements over $125,000,000 must be reviewed by the members of the Legislative Advisory Commission under section 3.30 and the ranking minority members of the house of representatives and senate committees or divisions responsible for overseeing the items subject to the proposed procurement. The chair of the Metropolitan Council shall give notice to the Legislative Advisory Commission secretary when a procurement over $125,000,000 is being considered. The commission shall take testimony on the procurements. 

473F.02 DEFINITIONS.Subd. 21.Metropolitan Council. 
"Metropolitan Council" or "council" means the Metropolitan Council created by section 473.123. 

473F.08 NET TAX CAPACITY.Subd. 3b.Livable communities fund. 
(a) The Hennepin County auditor shall certify the city of Bloomington's interest payments for 1987 for the bonds which were sold for highway improvements pursuant to Laws 1986, chapter 391, section 2, paragraph (g), and which were certified as an addition to the city of Bloomington's areawide levy for taxes payable in 1988. 

(b) For taxes payable in 1996 through taxes payable in 1999, the Hennepin County auditor shall certify the amount calculated by subtracting the amount certified under subdivision 3a from the amount in paragraph (a). For taxes payable in 2000 and subsequent years, the Hennepin County auditor shall certify the amount calculated in paragraph (a). 

(c) The Metropolitan Council may annually certify to the Ramsey County auditor the amount calculated under paragraph (b), or a lesser amount, but not to exceed $5,000,000, to be used to provide funds for the cleanup of polluted lands in the metropolitan area. 

(d) The amount certified under paragraph (c) shall be certified annually by the Ramsey County auditor to the administrative auditor as an addition to the Metropolitan Council's areawide levy under subdivision 5. 

473H.02 DEFINITIONS.Subd. 7.Long-term agricultural land. 
"Long-term agricultural land" means land in the metropolitan area designated for agricultural use in local or county comprehensive plans adopted and reviewed pursuant to sections 473.175, and 473.851 to 473.871, and which has been zoned specifically for agricultural use permitting a maximum residential density of not more than one unit per quarter/quarter. 

Subd. 8.Metropolitan area. 
"Metropolitan area" has the meaning given it in section 473.121, subdivision 2. 

473J.25 METROPOLITAN SPORTS FACILITIES COMMISSION ASSETS; LIABILITIES TO AUTHORITY.Subd. 5.Conforming changes. 
The Metropolitan Sports Facilities Commission shall submit a technical bill to the 2013 legislature making any cross-reference, grammatical, or other conforming changes necessary as a result of Laws 2012, chapter 299. This bill shall be submitted by February 12, 2013. 

5800.0010PURPOSE. 
Minnesota Statutes, section 473.173, requires that the Metropolitan Council adopt and put into effect rules establishing standards, guidelines, and procedures for determining whether any proposed project is of metropolitan significance. This chapter will be used in the review of all such projects. The purpose of this chapter is to assure that the total effect of a proposed project alleged to be of metropolitan significance is considered and the orderly and economic development of the area is promoted. It is not the council's intent to use this chapter to stop development, but rather to work out differences among parties and arrive at consensus. 

5800.0020DEFINITIONS. Subpart 1.Scope.  
As used in this chapter, the following terms have the meanings given them. 

Subp. 2.Adjacent governmental unit.  
"Adjacent governmental unit" means all local governmental units and independent commissions whose jurisdiction includes or adjoins, in whole or in part, that of the governmental unit(s) in which the proposed project is located. 

Subp. 3.Affected governmental unit, state agency, or metropolitan agency.  
"Affected governmental unit," "state agency," or "metropolitan agency" means all local governmental units, independent commissions, and state or metropolitan agencies whose legal rights, duties, or privileges may be substantially affected by a proposed project. 

Subp. 4.Bad faith.  
"Bad faith" means a conscious and willful decision to act in a manner intending to mislead, deceive, or distort the truth, including but not limited to making a claim which one knows to be groundless or unfounded. 

Subp. 5.Chair.  
"Chair" means the chair of the Metropolitan Council. 

Subp. 6.Commercial-agricultural area.  
"Commercial-agricultural area" means those lands certified by local governments as eligible for agricultural preserves under the Agricultural Preserves Act, Minnesota Statutes, sections 473H.01 to 473H.18. 

Subp. 7.Comprehensive plan or local comprehensive plan.  
"Comprehensive plan" or "local comprehensive plan" means a comprehensive plan of a local governmental unit as required by the Metropolitan Land Planning Act, Minnesota Statutes, sections 473.851 to 473.871. 

Subp. 8.Comprehensive sewer plan.  
"Comprehensive sewer plan" means a plan required by the Metropolitan Waste Control Commission which describes the collection, treatment, and disposal of all sanitary sewage, including the installation, operation, and maintenance of on-site sewage disposal facilities. 

Subp. 9.Independent commission, board, or agency.  
"Independent commission," "board," or "agency" means governmental entities with jurisdictions lying in whole or in part within the metropolitan area, including independent or special school districts whose administrative offices were located within the metropolitan area as of April 15, 1976, but not including the metropolitan agencies. 

Subp. 10.Land Use Advisory Committee or advisory committee.  
"Land Use Advisory Committee" or "advisory committee" means an advisory committee established by the Metropolitan Council pursuant to Minnesota Statutes, section 473.853. 

Subp. 11.Local governmental unit or unit.  
"Local governmental unit" or "unit" means any city, town, county, school district, special district, or other political subdivision or public corporation, other than a metropolitan agency, lying in whole or part within the metropolitan area. 

Subp. 12.Mainline.  
"Mainline" means those lanes of a highway that carry through traffic. 

Subp. 13.Metropolitan agency.  
"Metropolitan agency" means the Metropolitan Waste Control Commission, the Regional Transit Board, the Metropolitan Transit Commission, and other agencies as the legislature may designate. 

Subp. 14.Metropolitan area.  
"Metropolitan area" means the area over which the Metropolitan Council has jurisdiction, including only the counties of Anoka, Carver, Dakota excluding the city of Northfield, Hennepin excluding the city of Hanover, Ramsey, Scott excluding the city of New Prague, and Washington. 

Subp. 15.Metropolitan Council or council.  
"Metropolitan Council" or "council" means the Metropolitan Council established by Minnesota Statutes, section 473.123. 

Subp. 16.Metropolitan Development Guide.  
"Metropolitan Development Guide" means the comprehensive development guide prepared by the council to achieve the orderly and economic development of the metropolitan area. 

Subp. 17.Metropolitan highway.  
"Metropolitan highway" means those highways identified in the Transportation Guide/Policy Plan to serve the region. They include both interstate freeways and major arterials. 

Subp. 18.Metropolitan system.  
"Metropolitan system" means the regional airport, transportation, sewer, recreation open space, and solid waste facilities and plans for facilities outlined in the Metropolitan Development Guide. 

Subp. 19.Metropolitan significance review or significance review.  
"Metropolitan significance review" or "significance review" means a review conducted by the Metropolitan Council according to this chapter. 

Subp. 20.Party.  
"Party" means the requester, sponsor, and local governmental unit(s) in which the proposed project is located and any person whose legal rights, duties, or privileges may be substantially affected by a significance review who is admitted as a party by the significance review committee, administrative law judge, or council. The council will not be a party to a significance review except when it initiates the review. 

Subp. 21.Person.  
"Person" means any individual, association, trust, partnership, joint venture, public or private corporation, metropolitan agency, local governmental unit, independent commission, state agency, government or governmental subdivision, unit, or agency other than a court of law. 

Subp. 22.Petition.  
"Petition" means a document containing signatures submitted to the council according to the procedures for initiation of a significance review, which contains, at the time that the signatures are added, a description of what the petition is for, a reference to the metropolitan significance rules, and a brief summary of the reason for the petition. 

Subp. 23.Phased proposed project.  
"Phased proposed project" means a proposed project which is divided into separate stages or segments, one or more of which may be of metropolitan significance. 

Subp. 24.Policy plan or guide chapter.  
"Policy plan" or "guide chapter" means the Metropolitan Development Guide chapter adopted pursuant to Minnesota Statutes, section 473.145, the policy plans for metropolitan agencies adopted pursuant to Minnesota Statutes, section 473.146, the Recreation Open Space Development Guide/Policy Plan, adopted pursuant to Minnesota Statutes, section 473.147, the Solid Waste Management Development Guide/Policy Plan, adopted pursuant to Minnesota Statutes, section 473.149, and amendments to any of these plans. These plans or chapters are incorporated by reference in this chapter. They are available through the Minitex interlibrary loan system and subject to frequent change. The policy plans or guide chapters referenced in any metropolitan significance review will be those in effect at the time the review is initiated. 

Subp. 25.Proposed project.  
"Proposed project" means a project or action involving the construction, installation, establishment, siting, demolition, reconstruction, or improvement of any structure or facility, or the subdivision or drilling, extraction, clearing, excavation, or other alteration of any lands or waters, planned or proposed to be undertaken, in whole or in part within the metropolitan area, by any person. 

Subp. 26.Public agency.  
"Public agency" means a local governmental unit, metropolitan agency, independent commission, state agency, or any government or governmental subdivision, unit, or agency other than a court of law. 

Subp. 27.Publicly subsidized; public subsidy.  
"Publicly subsidized" means a direct expenditure or in kind contribution by a state, regional, or local governmental unit to a private project (one that is not publicly financed) for any purpose for which the governmental unit is not reimbursed; or a long-term loan by a state, regional, or local governmental unit to a private project. Public subsidy is determined by how the funds are used and not by the source of the revenues provided. Public subsidy includes, but is not limited to, the purposes in items A to E. 

A.
 Construction of utility improvements without special assessment to the benefited properties of 20 percent or more of the total collective cost of the improvement. 

B.
 Acquisition of property and site development, including demolition, clearance, and relocation together with transfer of title to the property to a private party at a price below the actual costs of acquisition and development. 

C.
 Construction of private, on-site improvements including drainage facilities, site grading, parking, lighting, landscaping, and related improvements. 

D.
 Construction or payment for construction of buildings to be used by one or more private parties for commercial or industrial purposes. Construction may include parking facilities, foundations, building construction, interior furnishings, equipment, and related costs. 

E.
 Construction or reconstruction of a county state aid or state trunk highway improvement that is determined necessary to serve increased traffic from a major private project. Highway improvements may include roadway upgrading, bridges, overpasses, entrance and exit roadway improvements, and other improvements. 

Public subsidy does not include land sold at market value but below the local governmental unit's cost of acquiring and preparing the land for sale. 

Subp. 28.Publicly financed facility.  
"Publicly financed facility" means a facility where a governmental jurisdiction has an ongoing obligation to pay operating costs or debt service for the facility or the ultimate responsibility to pay off bonds should other revenue sources fail. 

Subp. 29.Requester.  
"Requester" means any person requesting the initiation of a metropolitan significance review. 

Subp. 30.Review period.  
"Review period" means the 90-day period for a metropolitan significance review which begins on the effective date of an order to commence a significance review and automatically terminates on the 90th day following unless a suspension or extension of the review period is authorized under part 5800.0100, subpart 1 or 5800.0140, subparts 4 and 6. 

Subp. 31.Service or serve.  
"Service" or "serve" means personal service or service by first class United States mail, postage prepaid and addressed to the person or party at the last known address of the person or party. Service by mail will be complete upon the placing of the item to be served in the mail. 

Subp. 32.Sewer policy plan.  
"Sewer policy plan" means a component of the local comprehensive plan which describes the areas to be sewered with public facilities and a schedule for providing service to them, existing flows and flow projections for the public sewer system, standards and conditions for the installation of private systems, and areas not suitable for public or private systems. 

Subp. 33.Sponsor.  
 "Sponsor" means any person proposing to undertake or develop a proposed project. 

Subp. 34.State agency.  
"State agency" means the state of Minnesota or any agency, board, commission, department, or educational institution of the state. 

Subp. 35.Substantial.  
"Substantial" is a relative term. It imports a considerable amount or value in opposition to that which is inconsequential or small, something serious as opposed to trivial, something essential, material, or fundamental. 

5800.0030STANDARDS FOR REVIEW. 
Unless a proposed project is exempt, the chair of the Metropolitan Council must issue a preliminary finding of metropolitan significance if a proposed project may cause any of the effects listed in part 5800.0040. The same criteria will be used by the council when it makes the final determination of metropolitan significance following the council review process. A proposed project may be found to be of metropolitan significance only if it meets one or more of these criteria. 

5800.0040CRITERIA TO FIND METROPOLITAN SIGNIFICANCE. Subpart 1.Generally.  
For the purposes of parts 5800.0070 and 5800.0130, a proposed project listed in subparts 2 to 4 has metropolitan significance if the requirements of the applicable subpart are met. 

Subp. 2.Proposed project affecting a metropolitan system.  
A proposed project affecting a metropolitan system has metropolitan significance if it: 

A.
 May result in a substantial change in the timing, staging, and capacity or service area of local facilities in a council-approved local sewer policy plan or comprehensive sewer plan. 

B.
 May result in a wastewater flow that substantially exceeds the flow projection for the local governmental unit as indicated in the Water Resources Management Development Guide/Policy Plan, Part 1. Sewage Treatment and Handling. 

C.
 May require a new national pollution discharge elimination system permit or state disposal system permit or a substantial change to an existing permit. 

D.
 May result in substantially less restrictive standards and conditions to be adopted for the installation or management of private on-site sewer facilities than those described in the comprehensive plan. 

E.
 May have a substantial impact on the use of regional recreation and open space facilities or natural resources within the regional recreation open space system. Impacts on the use of recreation and open space facilities include but are not limited to traffic, safety, noise, visual obstructions (for example, to scenic overlooks), impaired use of the facilities, or interference with the operation or maintenance of the facilities. Impacts on natural resources include but are not limited to the impact on the level, flow, or quality of a facility's water resources (lakes, streams, wetlands) and impact on a facility's wildlife populations or habitats (migration routes, breeding sites, plant communities). 

F.
 May preclude or substantially limit the future acquisition of land in an area identified in the capital improvement program of the council's Recreation Open Space Development Guide/Policy Plan. 

G.
 May substantially affect either the function of a metropolitan airport identified in the council's Aviation Development Guide/Policy Plan or the land use within an airport search area. 

H.
 Is substantially inconsistent with the "Guidelines for Land Use Compatibility with Aircraft Noise" contained in the Aviation Development Guide/Policy Plan. 

I.
 May result in a substantial change to existing or proposed metropolitan highways, highway interchanges, or intersections with metropolitan highways, or to local roadways that have interchanges with metropolitan highways. Substantial changes to the mainline, interchanges, and intersections include an increase in volume that will overload the facility, or a difference in timing, design, or location from that indicated in the Transportation Guide/Policy Plan. Changes to local roadways include changes in timing, staging, volume, capacity, design, location, or functional classification. 

J.
 May result in a substantial change in transit service or facilities inconsistent with the Transportation Guide/Policy Plan. 

K.
 May have a substantial impact on the use of solid waste facilities identified in the Solid Waste Management Development Guide/Policy Plan. Impacts on the use of these facilities include, but are not limited to, disruption of planned facility staging, facility access, or other interference with the operation and maintenance of the facilities. 

Subp. 3.Proposed publicly subsidized project.  
A proposed publicly subsidized project has metropolitan significance if it may threaten a publicly financed facility. 

Subp. 4.Proposed project affecting a local governmental unit.  
A proposed project affecting a local governmental unit has metropolitan significance if it: 

A.
 May have a substantial physical effect on a local governmental unit other than the local unit in which the proposed project is located. More specifically, a proposed project may be of metropolitan significance if it adversely affects existing or proposed land use or development in another local government with respect to traffic, storm water runoff, groundwater pollution, air or noise pollution, increased security needs (police, fire) or other similar impacts. 

B.
 May result in the substantial disruption of agricultural use in the commercial-agricultural area of a local governmental unit other than the local unit in which the proposed project is located. 

5800.0050EXEMPT PROJECTS. Subpart 1.Generally.  
The chair will not commence a metropolitan significance review if a proposed project falls in one or more of the exempt categories in subparts 2 to 5. 

Subp. 2.Local comprehensive plan exemption.  
A proposed project that is consistent with a council-approved local comprehensive plan is exempt from review for metropolitan system effects. The council shall determine whether a proposed project is consistent for system effects with the local plan. 

Subp. 3.Previous approval.  
Any proposed project of a metropolitan agency or the Metropolitan Airports Commission which is within an area of that agency's operational authority or which has been or will be subject to approval by the council as part of a regional policy plan; any proposed project which has been previously approved by the council in accordance with Minnesota Statutes, section 473.167; or any proposed project for which a final determination has been made in a metropolitan significance review is exempt from review unless the proposed project has been materially altered subsequent to the final determination. 

Subp. 4.Emergency project.  
Any proposed project which must be immediately undertaken to prevent or mitigate an emergency is exempt from review. The following standards will form the basis for determining if an emergency exists: 

A.
 the degree to which the alleged emergency circumstances were foreseeable; 

B.
 whether alternate means can alleviate the emergency; and 

C.
 the probable effect of the proposed project in mitigating the emergency circumstances. 

Subp. 5.Minor alterations.  
Any proposed project consisting exclusively of administrative or maintenance activity or a negligible improvement, expansion, or change of use or use intensity is exempt from review. 

Subp. 6.Lapse of time; vested rights.  
Any proposed project for which 30 days have elapsed since a negative declaration on an Environmental Assessment Worksheet as described in part 4410.1700, or a determination of adequacy on an Environmental Impact Statement as described in part 4400.2800, or in the event no environmental review is required, any proposed project for which 30 days have elapsed since a local governmental unit has approved a plan amendment or rezoning to accommodate the proposed project is exempt from review. A metropolitan significance review cannot be initiated on any proposed project where a sponsor has vested rights. 

5800.0060INITIATION OF REVIEW. Subpart 1.By requesters.  
A metropolitan significance review may be requested by: 

A.
 a resolution from the unit of government in which the proposed project is located; 

B.
 a resolution from an affected local governmental unit, school district, or other independent commission; 

C.
 a petition signed by the smaller of the following: at least 5,000 residents of the metropolitan area 18 years of age or older, or that number of residents 18 years of age or older of an affected local governmental unit which equals or exceeds 50 percent of the number of persons who voted in that affected governmental unit during the most recently held state general election. The petition must designate at least one and no more than three persons to act as requesters on behalf of the petitioner; 

D.
 a resolution or letter from a duly authorized executive officer or governing body of state agency; 

E.
 a resolution or letter from a duly authorized executive officer or governing body of a sponsor; or 

F.
 a resolution from an affected metropolitan agency. 

Subp. 2.By council.  
The council may review proposed projects of metropolitan significance regardless of whether the council has received a request to initiate a review. 

Subp. 3.Information submission.  
A request for review under subpart 1 must be accompanied by an information submission. The purpose of the information submission is to demonstrate an arguable claim of metropolitan significance. An information submission must contain the following: 

A.
 the names and addresses of the requester, the sponsor, and the governmental unit(s) in which the proposed project is located; 

B.
 a description of the proposed project including its planned character, location, function, use, and size; 

C.
 a statement of the criteria contained in the appropriate subpart of part 5800.0040 which cause the proposed project to be of metropolitan significance, and a discussion of why it is not exempt; and 

D.
 a statement of the effect the proposed project will have on metropolitan systems or existing or planned land use or development, or if publicly subsidized, the effects on a publicly financed facility, including the facts and opinion upon which the statement is based. 

5800.0070PRELIMINARY FINDING OF METROPOLITAN SIGNIFICANCE. Subpart 1.Review of information submission.  
Upon receipt of a request accompanied by an information submission, the chair must within ten working days examine the materials and make a preliminary finding of metropolitan significance based on the following requirements: 

A.
 the request complies with and satisfies the requirements of part 5800.0060; 

B.
 the significance review has not been requested in bad faith; 

C.
 the information submission arguably demonstrates that a metropolitan system or existing or planned land use or development will be affected by the proposed project or that a publicly subsidized project has an effect on a publicly financed facility; and 

D.
 the proposed project is not exempt. 

After receiving a request to commence a metropolitan significance review, but before making a preliminary finding of metropolitan significance, the chair may meet with any of the parties and may request additional information. 

Subp. 2.Scoping of issues.  
In the preliminary finding, the chair will identify which of the issues raised in the information submission are legitimate for significance review and specify any other issues which should be included in the significance review. Only these issues will be included in the scope of review at the public hearing, unless the significance review committee gives at least seven days notice before the public hearing to all parties that additional issues will be added to the scope of review. A description of the issues will be included with the notice. 

5800.0080COMMENCEMENT AND DETERMINATION NOT TO COMMENCE. Subpart 1.Council initiation.  
A significance review initiated by the council will commence on the day the council adopts an order to commence a significance review. 

Subp. 2.Initiation by requesters.  
If the chair determines that the request complies with and satisfies the requirements of part 5800.0060, the chair will commence the significance review by issuing an order for commencement effective as of the date of the order. The order will include the chair's preliminary finding of metropolitan significance. If the chair decides not to commence a significance review, the chair must immediately inform the parties of the determination and basis for it. 

Subp. 3.Appeal.  
Person(s) requesting a review, the governmental unit(s) in which the proposed project is located, and the sponsor may appeal the chair's decision not to commence the significance review to the council by submitting a written request within seven days following notification of the chair's determination. The council must review this request at a public hearing and either direct the issuance of an order for commencement or affirm the chair's decision. 

Subp. 4.Notice of commencement of significance review.  
The council must serve notice of the commencement of a significance review on all parties, adjacent governmental units, metropolitan agencies, and the Land Use Advisory Committee within five days following the determination to commence a review. The notice will contain the order for commencement, the information submission or a summary of the submission, an order to the sponsor to suspend action on the proposed project, and a schedule for the metropolitan significance review. Notice that the significance review has been commenced will be published in the next following issue of the council bulletin, as described in Minnesota Statutes, section 473.247. 

Subp. 5.Review period.  
The council will complete a metropolitan significance review within 90 days following commencement unless suspended or extended under part 5800.0100, subpart 1, or 5800.0140, subparts 4 and 6. 

Subp. 6.Implementation hold during review period.  
Upon commencement of a metropolitan significance review, no person will commence site alteration on a proposed project until the council's issuance of a final determination concerning the proposed project or the expiration of the significance review period, whichever occurs first. 

5800.0090SIGNIFICANCE REVIEW COMMITTEE. 
Immediately following the commencement of a significance review, the chair will appoint a significance review committee composed of no more than seven or fewer than three individuals all of whom are members of the council or the Land Use Advisory Committee. The chair will appoint at least one council member and one Land Use Advisory Committee member to all significance review committees and will designate one of the review committee members to be the chair of the committee. 

5800.0100REVIEW ALTERNATIVES. Subpart 1.Mediation.  
The chair may determine that the proposed project under review is more suited to mediation than to a formal public hearing process and may suspend the metropolitan significance review for up to 30 days to bring the parties together to resolve differences. The resolution of these differences will be outlined in a written agreement. The agreement must be signed by all parties and must be accepted by the council. If the parties do not reach agreement within the suspension period, the significance review will resume. Any party may appeal the chair's decision to use mediation by submitting a written request to the council within seven days following the chair's decision. The council must review this request and either direct use of the public hearing process or affirm the chair's decision. 

Subp. 2.Public hearing process.  
Unless mediation resolves the differences among the parties, the significance review will include a formal public hearing. 

Subp. 3.Use of an administrative law judge.  
At any time before beginning the public hearing, the significance review committee may decide to use an administrative law judge appointed by the Office of Administrative Hearings for conducting the public hearing. A hearing held by an administrative law judge will be conducted in accordance with the rules of the Office of Administrative Hearings for contested cases, parts 1400.5010 to 1400.8400, to the extent those rules are not inconsistent with the time periods and procedures specified in this chapter. The report of the administrative law judge appointed by the significance review committee will be transmitted to the review committee. The committee will review the report and may use it as a basis for developing committee findings and recommendations. Any party may make a request for delegation of responsibility to an administrative law judge. 

Subp. 4.Phased proposed project.  
When undertaking a significance review of a phased proposed project, the council may consider the total project or any separate independently viable stage. In determining independent viability, the council will consider whether a particular stage is viable without subsequent development, the interrelationship between the stage and subsequent development and whether the stage would foreclose the option of making modifications to mitigate metropolitan system effects. Any significance review of a separate stage will not preclude subsequent significance review of other stages. 

5800.0110STEPS IN HEARING PROCESS. Subpart 1.Preliminary statement.  
Within 30 days after the review is commenced, the sponsor, the requester, and the governmental unit in which the proposed project is located must submit to the significance review committee or administrative law judge a preliminary statement containing information, facts, and opinions regarding the following: 

A.
 the applicability to the proposed project of part 5800.0030; 

B.
 the significance and effect of the proposed project on metropolitan systems or on local governments or, if publicly subsidized, the effects on a publicly financed facility; and 

C.
 the appropriate remedy. 

In addition, the sponsor must indicate all other governmental reviews and approvals required in connection with the proposed project, and their current status. 

Subp. 2.Submissions.  
The sponsor and the local governmental unit within which the proposed project is located must submit the following to the significance review committee or administrative law judge: 

A.
 copies of any information given by the sponsor to any local governmental unit required to approve the proposed project; and 

B.
 a copy of the findings, report, or determination made by the local government on the proposed project. 

Subp. 3.Participation by nonparties.  
The significance review committee will decide the manner and extent of participation by persons other than the parties. 

Subp. 4.Significance review report.  
At least ten days before the public hearing conducted by the significance review committee or the administrative law judge, council staff will prepare a written report on the proposed project. This report will not contain any findings or recommendations about the metropolitan significance of the proposed project. The report will be sent to all parties and made available to the public. Parties may submit statements about the report to the significance review committee at any time before the close of the record of the public hearing. The report will contain: 

A.
 a listing, including sources, of all information submitted to the committee or to the administrative law judge; 

B.
 a description of the proposed project; 

C.
 the criteria listed in part 5800.0040 that apply to the proposed project; and 

D.
 a summary of the issues presented in each of the preliminary statements, including any disagreements regarding facts of the proposed project. 

Subp. 5.Council information.  
The council may enter information related to the review of the proposed project into the record of the public hearing. This material and its authors will be subject to examination at the public hearing. 

Subp. 6.Additional information.  
On its own initiative or at the request of a party, the significance review committee may request additional information from any party before the close of the public hearing. If a party does not reasonably comply with a request, the significance review committee may order that the subject matter of the information to be produced be considered established for purposes of the significance review in accordance with the claims of the party requesting the information or refuse to allow the party failing to produce the information to support or oppose designated claims or prohibit the party from introducing the designated information into the hearing record. 

Subp. 7.Public hearing.  
The significance review committee or an administrative law judge appointed by the committee must hold at least one public hearing on the proposed project. Notice of this public hearing must be published in the council bulletin and served on all parties at least 15 days prior to the hearing. The public hearing must be conducted in a manner designed to protect the rights of all persons and parties and to ensure fundamental fairness. Public hearings conducted by an administrative law judge will be governed by parts 1400.5010 to 1400.8400. Public hearings conducted by the significance review committee will be conducted according to the council's hearing procedures as contained in Procedures for Adopting or Amending a Chapter of the Metropolitan Development Guide. This publication is incorporated by reference in this chapter. It is available through the Minitex interlibrary loan system and subject to frequent change. 

5800.0120COMMITTEE REPORT TO COUNCIL. 
Following the public hearing and the receipt of the report of the administrative law judge, if any, the significance review committee must adopt a committee report with findings of fact, conclusions, and recommendations to the Metropolitan Council. 

The committee's report will be based on information submitted before the close of the record of the public hearing. Committee members may use their experience, technical competence, and specialized knowledge in the evaluation of this information. In addition, the report may include comments on the consistency of the proposed project with council plans and policies. 

The findings of fact, conclusions, and recommendations of the significance review committee will be served on all parties and immediately transmitted to the council. All information and material considered by the significance review committee will be made available to council members. 

5800.0130COUNCIL DETERMINATION. Subpart 1.Consideration of findings of fact, conclusions, and recommendations.  
The council will consider the committee report and all information submitted before the close of the record of the public hearing in making a final determination on the proposed project. The council may hold additional meetings to consider the proposed project or direct the significance review committee to conduct further specific significance review activity. 

Subp. 2.Metropolitan Council final determination.  
The council, after review and consideration of the metropolitan significance review committee's report, must adopt a final determination including findings of fact, conclusions, and recommendations with regard to the metropolitan significance of the proposed project. The council must find that the proposed project is or is not of metropolitan significance, based on the conclusion that it does or does not cause one or more of the effects contained in the appropriate subpart in part 5800.0040. The council may also comment on the consistency of the proposed project with other council plans and policies. Lack of consistency with council plans and policies other than those listed in part 5800.0040 will not constitute a basis for a determination of metropolitan significance. 

Subp. 3.Proposed projects of metropolitan significance.  
Upon a determination of metropolitan significance, the final determination also must indicate: 

A.
 whether an amendment to a regional policy plan would eliminate the determination of metropolitan significance and further, whether the council intends to initiate an amendment to the affected policy plan to achieve consistency between its plan and the proposed project; or 

B.
 whether the proposed project should be suspended for up to one year from the date of final determination. If the council orders a suspension, the order may contain conditions or modifications to the proposed project which, if complied with, would cause the council to eliminate the suspension; or 

C.
 without ordering a suspension, how the proposed project could be modified to eliminate the determination of metropolitan significance. 

Subp. 4.Notice to parties.  
Copies of the council determination will be served on all parties within seven days following its adoption. 

Subp. 5.Elimination of suspension.  
The sponsor of any proposed project suspended by the council with conditions or modifications may request removal of the suspension based on meeting the conditions of the suspension. Upon receipt of a request for removal of the suspension, the council will hold a public hearing to consider the request. Parties to the significance review will be notified at least 15 days before the public hearing on the removal and given an opportunity to speak at the hearing concerning compliance with the conditions of suspension. 

5800.0140PROCEDURAL OPTIONS. Subpart 1.Bad faith.  
The council may dismiss with prejudice any significance review which it finds has been initiated in bad faith. This determination will not be made without allowing the parties to hear, rebut, and present evidence regarding the dismissal. 

Subp. 2.Withdrawal of review.  
At any time during the conduct of a significance review, the requester or sponsor may request that the council withdraw the proposed project from significance review, setting forth the reasons for the request. If all the parties agree, the council may grant the request and allow a proposed project to be withdrawn from review. 

Subp. 3.Settlement.  
The parties to a significance review may execute a settlement agreement with regard to the proposed project at any time before the issuance of a final determination. The agreement must be in writing, signed by all parties, and will be subject to acceptance or rejection by the council. 

Subp. 4.Suspension.  
The council may suspend a significance review for not more than 90 days to allow the council to review a plan amendment for the proposed project under the provisions of the Metropolitan Land Planning Act. The council also may suspend a significance review for not more than 90 days to await the decision of a public agency whose authorization is required for the proposed project to proceed. In the event that the agency denies authorization for the proposed project, the council may dismiss the metropolitan significance review. 

The sponsor and the requester may agree to suspend any of the time periods specified for a significance review. The agreement must be approved by the significance review committee. If the council initiates a significance review, the council and the sponsor may agree to suspend any of the time periods. 

The council may suspend a significance review to await the submission of adequate supporting information. 

Subp. 5.Review coordination.  
When appropriate, the council will coordinate the significance review with other reviews, such as the environmental review process. 

Subp. 6.Extension.  
At any time before the council determination, the significance review committee and the parties may agree to extend the review period in order to collect more information. The time extension must be specified in a written agreement between the committee and the parties. The council, acting on its own initiative, also may extend the time period of a significance review to await the submission of adequate supporting information. 

5800.0150JUDICIAL REVIEW. 
A final determination adopted by the council and a determination by the council not to commence a significance review constitute final decisions by the council for purposes of judicial review.