2002 Minnesota Statutes

CHAPTER 174. Department of transportation

     174.01 Creation; policy. 

    Subdivision 1.    Department created.  In order to 
 provide a balanced transportation system, including aeronautics, 
 highways, motor carriers, ports, public transit, railroads and 
 pipelines, a department of transportation is created.  The 
 department is the principal agency of the state for development, 
 implementation, administration, consolidation, and coordination 
 of state transportation policies, plans and programs. 

    Subd. 2.    Transportation goals.  The goals of the 
 state transportation system are as follows: 

    (1) to provide safe transportation for users throughout the 
 state; 

    (2) to provide multimodal and intermodal transportation 
 that enhances mobility and economic development and provides 
 access to all persons and businesses in Minnesota while ensuring 
 that there is no undue burden placed on any community; 

    (3) to provide a reasonable travel time for commuters; 

    (4) to provide for the economical, efficient, and safe 
 movement of goods to and from markets by rail, highway, and 
 waterway; 

    (5) to encourage tourism by providing appropriate 
 transportation to Minnesota facilities designed to attract 
 tourists; 

    (6) to provide transit services throughout the state to 
 meet the needs of transit users; 

    (7) to promote productivity through system management and 
 the utilization of technological advancements; 

    (8) to maximize the benefits received for each state 
 transportation investment; 

    (9) to provide funding for transportation that, at a 
 minimum, preserves the transportation infrastructure; 

    (10) to ensure that the planning and implementation of all 
 modes of transportation are consistent with the environmental 
 and energy goals of the state; 

    (11) to increase high-occupancy vehicle use; 

    (12) to provide an air transportation system sufficient to 
 encourage economic growth and allow all regions of the state the 
 ability to participate in the global economy; 

    (13) to increase transit use in the urban areas by giving 
 highest priority to the transportation modes with the greatest 
 people moving capacity; and 

    (14) to promote and increase bicycling as an 
 energy-efficient, nonpolluting, and healthful transportation 
 alternative. 

    HIST: 1976 c 166 s 1; 1991 c 298 art 1 s 1 

     174.02 Commissioner's powers and duties. 

    Subdivision 1.    Appointment.  The department shall be 
 supervised and controlled by the commissioner of transportation, 
 who shall be appointed by the governor and serve under the 
 provisions of section 15.06. 

    Subd. 1a.    Mission; efficiency; legislative report, 
 recommendations.  It is part of the department's mission that 
 within the department's resources the commissioner shall 
 endeavor to: 

    (1) prevent the waste or unnecessary spending of public 
 money; 

    (2) use innovative fiscal and human resource practices to 
 manage the state's resources and operate the department as 
 efficiently as possible; 

    (3) coordinate the department's activities wherever 
 appropriate with the activities of other governmental agencies; 

    (4) use technology where appropriate to increase agency 
 productivity, improve customer service, increase public access 
 to information about government, and increase public 
 participation in the business of government; 

    (5) utilize constructive and cooperative labor-management 
 practices to the extent otherwise required by chapters 43A and 
 179A; 

    (6) report to the legislature on the performance of agency 
 operations and the accomplishment of agency goals in the 
 agency's biennial budget according to section 16A.10, 
 subdivision 1; and 

    (7) recommend to the legislature appropriate changes in law 
 necessary to carry out the mission and improve the performance 
 of the department. 

    Subd. 2.    Unclassified positions.  The commissioner 
 may establish four positions in the unclassified service at the 
 deputy and assistant commissioner, assistant to commissioner or 
 personal secretary levels.  No more than two of these positions 
 shall be at the deputy commissioner level. 

    Subd. 3.    Departmental organization.  The 
 commissioner shall organize the department in a manner 
 recognizing the administrative and staffing needs of all modes 
 of transportation within the commissioner's jurisdiction, and 
 shall employ personnel as the commissioner deems necessary to 
 discharge the functions of the department.  The commissioner 
 shall adopt an affirmative action plan for the department in 
 order to insure that department hiring encourages the selection 
 of members of groups of persons who because of unfair or 
 unlawful discriminatory practices have in the past been denied 
 equal employment opportunity.  This plan need not be promulgated 
 as a rule, but it shall be approved by the commissioner of 
 employee relations.  The plan shall provide that the affected 
 groups of persons shall constitute at least the same 
 proportional number of employees in the department as they 
 constitute in the total employment in state government; provided 
 that this limitation shall expire in respect to an affected 
 group when the commissioner of employee relations certifies that 
 members of that affected group are employed in the department in 
 the same proportion as they constitute in the total employment 
 in state government. 

    Subd. 4.    Appearances on public transportation matters. 
  The commissioner may appear as a party on behalf of the 
 public in any proceeding or matter before the surface 
 transportation board or any other agency or instrumentality of 
 government that regulates public services or rates relating to 
 transportation or other matters related to the powers and 
 responsibilities of the commissioner as prescribed by law.  The 
 commissioner shall appear as a party on behalf of the public in 
 proceedings as provided by law on matters that directly relate 
 to the powers and duties of the commissioner or substantially 
 affect the statewide transportation plan.  

    Subd. 5.    Cooperation.  To facilitate the development 
 of a unified and coordinated intrastate and interstate 
 transportation system: 

    (1) the commissioner shall maintain close liaison, 
 coordination, and cooperation with the private sectors of 
 transportation, the upper great lakes seaway development 
 commission corporation, and any multistate organization involved 
 in transportation issues affecting the state; 

    (2) the commissioner shall participate in the planning, 
 regulation, and development of the port authorities of the 
 state; 

    (3) the commissioner or the commissioner's designee is a 
 nonvoting member of the metropolitan airports commission, as 
 organized and established under sections 473.601 to 473.679; 

    (4) the commissioner shall cooperate with all federal 
 agencies for the purpose of harmonizing state rules and federal 
 regulations within the state to the extent and in the manner 
 deemed advisable; 

    (5) the commissioner may conduct joint hearings with any 
 federal agency within or outside the state and, to the extent 
 allowed under federal law or regulation, may approve and 
 establish freight rates and charges that depart from the 
 distance principle required by any state law; and 

    (6) the commissioner may nominate members to any joint 
 board as provided by federal acts. 

    Subd. 6.    Agreements, receipts, appropriation.  To 
 facilitate the implementation of intergovernmental efficiencies, 
 effectiveness, and cooperation, and to promote and encourage 
 economic and technological development in transportation matters 
 within and between governmental and nongovernmental entities: 

    (a) The commissioner may enter into agreements with other 
 governmental or nongovernmental entities for research and 
 experimentation; for sharing facilities, equipment, staff, data, 
 or other means of providing transportation-related services; or 
 for other cooperative programs that promote efficiencies in 
 providing governmental services or that further development of 
 innovation in transportation for the benefit of the citizens of 
 Minnesota.  

    (b) In addition to funds otherwise appropriated by the 
 legislature, the commissioner may accept and spend funds 
 received under any agreement authorized in paragraph (a) for the 
 purposes set forth in that paragraph, subject to a report of 
 receipts to the commissioner of finance at the end of each 
 fiscal year and, if receipts from the agreements exceed $100,000 
 in a fiscal year, the commissioner shall also notify the 
 governor and the committee on finance of the senate and the 
 committee on ways and means of the house of representatives.  

    (c) Funds received under this subdivision must be deposited 
 in the special revenue fund and are appropriated to the 
 commissioner for the purposes set forth in this subdivision. 

    Subd. 7.    Loans to commissioner.  The commissioner of 
 transportation may apply for and receive loans, as defined in 
 section 446A.085, subdivision 1, paragraph (d), from the 
 transportation revolving loan fund created in section 446A.085, 
 and may enter into agreements for the repayments of the loans. 

    HIST: 1976 c 166 s 2; 1977 c 305 s 23; 1980 c 534 s 13; 1980 c 
 617 s 47; 1986 c 444; 1993 c 266 s 28; 1995 c 248 art 11 s 12; 
 1998 c 366 s 58; 1999 c 230 s 17; 2001 c 213 s 11,12 

     174.025 Prohibition on establishing new division. 

    Notwithstanding any other law to the contrary, the 
 commissioner of transportation shall not establish any new 
 divisions in the department of transportation, other than 
 consolidations of existing divisions.  

    HIST: 1982 c 617 s 26 

     174.03 Duties of commissioner. 

    Subdivision 1.    Statewide transportation plan; 
 priorities; schedule of expenditures.  In order to best meet 
 the present and future transportation needs of the public, to 
 insure a strong state economy, to make most efficient use of 
 public and private funds, and to promote the more efficient use 
 of energy and other resources for transportation purposes, the 
 commissioner shall: 

    (1) three months after notification that the department is 
 ready to commence operations and prior to the drafting of the 
 statewide transportation plan, hold public hearings as may be 
 appropriate solely for the purpose of receiving suggestions for 
 future transportation alternatives and priorities for the 
 state.  The metropolitan council, regional development 
 commissions, and port authorities shall appear at the hearings 
 and submit information concerning transportation-related 
 planning undertaken and accomplished by these agencies.  Other 
 political subdivisions may appear and submit such information at 
 the hearings.  These hearings shall be completed no later than 
 six months from the date of the commissioner's notification; 

    (2) develop, adopt, revise, and monitor a statewide 
 transportation plan, taking into account the suggestions and 
 information submitted at the public hearings held pursuant to 
 clause (1).  The plan shall incorporate all modes of 
 transportation and provide for the interconnection and 
 coordination of different modes of transportation.  The 
 commissioner shall evaluate alternative transportation programs 
 and facilities proposed for inclusion in the plan in terms of 
 economic costs and benefits, safety aspects, impact on present 
 and planned land uses, environmental effects, energy efficiency, 
 national transportation policies and priorities, and 
 availability of federal and other financial assistance; 

    (3) based upon the statewide transportation plan, develop 
 statewide transportation priorities and schedule authorized 
 public capital improvements and other authorized public 
 transportation expenditures pursuant to the priorities; 

    (4) complete the plan and priorities required by this 
 subdivision no later than July 1, 1978.  Upon completion of the 
 plan and priorities, the commissioner shall prepare and 
 periodically revise, as necessary, the schedule of authorized 
 public transportation expenditures.  The plan, priorities, and 
 schedule are exempt from the provisions of the Administrative 
 Procedure Act. 

    Subd. 1a.    Revision of state transportation plan.  The 
 commissioner shall revise the state transportation plan by 
 January 1, 1996, January 1, 2000, and, if the requirements of 
 clauses (1) and (2) have been met in the previous revision, by 
 January 1 of every third even-numbered year thereafter.  Before 
 final adoption of a revised plan, the commissioner shall hold a 
 hearing to receive public comment on the preliminary draft of 
 the revised plan.  The revised state transportation plan must: 

    (1) incorporate the goals of the state transportation 
 system in section 174.01; and 

    (2) establish objectives, policies, and strategies for 
 achieving those goals.  

    Subd. 2.    Implementation of plan.  After the adoption 
 and each revision of the statewide transportation plan, the 
 commissioner shall take no action inconsistent with the revised 
 plan. 

    Subd. 3.    Relationship with national and local plans.  
  The statewide plan shall recognize established national 
 transportation policies.  The plan shall include matters of 
 local or regional concern if this inclusion is needed to insure 
 a comprehensive, statewide perspective on transportation 
 policies and priorities.  The commissioner shall recognize and 
 attempt to accommodate the local or regional transportation 
 plans.  However, the statewide plan shall supersede a local or 
 regional plan to the extent inconsistent on a matter which the 
 commissioner demonstrates is of statewide concern.  A political 
 subdivision may challenge the commissioner's determination that 
 a portion of a local or regional plan is superseded by the 
 statewide plan.  The subdivision shall institute the challenge 
 by filing a petition with the commissioner within 30 days after 
 being notified by the commissioner that the local or regional 
 plan is superseded.  The challenge shall be resolved by the 
 commissioner as a contested case pursuant to chapter 14. 

    Subd. 4.    Other duties.  The commissioner shall: 

    (1) construct and maintain transportation facilities as 
 authorized by law; 

    (2) cooperate with, and may provide technical and financial 
 assistance to, the metropolitan council and regional development 
 commissions in the regional transportation planning process, in 
 accordance with mutually acceptable terms and conditions; 

    (3) cooperate with, and may provide planning and technical 
 assistance upon the request of, any political subdivision or 
 other governmental agency in accordance with mutually accepted 
 terms and conditions, except as otherwise restricted by law; and 

    (4) develop, revise, and monitor a statewide rail 
 transportation plan as part of the statewide transportation 
 planning process, including a study and evaluation of 
 alternative methods for insuring adequate and economical 
 transportation of agricultural commodities, supplies, and other 
 goods to and from rural areas of the state.  The plan shall 
 include an analysis of rail lines in the state for the purpose 
 of determining (i) eligibility of rail lines for assistance 
 under federal and state rail assistance programs, (ii) 
 eligibility of rail lines for inclusion in the state rail bank, 
 and (iii) the actions required by the state to insure the 
 continuation of rail service that meets essential state needs 
 and objectives. 

    Subd. 5.    Regional transportation planning.  The 
 metropolitan council, pursuant to section 473.146, and the 
 regional development commissions shall develop regional 
 long-range transportation policy plans in cooperation with the 
 commissioner and local units of government.  Upon promulgation 
 of the statewide transportation plan, and periodically as 
 necessary thereafter, each regional policy plan shall be 
 reviewed and amended, if necessary, by the appropriate regional 
 agency to insure that the regional policy plan is not in 
 conflict with the statewide transportation plan. 

    Subd. 5a. Repealed, 1984 c 654 art 3 s 153 

    Subd. 6.    Social, economic, and environmental effects.  
  The commissioner shall consider the social, economic, and 
 environmental effects resulting from existing and proposed 
 transportation facilities and shall make continuing efforts to 
 mitigate any adverse effects.  The commissioner shall utilize a 
 systematic, interdisciplinary approach which shall insure the 
 integrated use of the natural, social, and physical sciences and 
 the environmental design arts in plans and decisions which may 
 affect the environment. 

    Subd. 6a.    Economic analysis of nonhighway alternatives. 
  If the commissioner considers congestion pricing, tolls, 
 mileage pricing, or public-private partnerships in order to meet 
 the transportation needs of commuters in the department's 
 metropolitan district between 2001 and 2020, the commissioner 
 shall, in cooperation with the metropolitan council and the 
 regional railroad authorities in the district, compare the 
 economics of these financing methods with the economics of 
 nonhighway alternatives for moving commuters.  The commissioner 
 shall analyze the economics as they relate to both individuals 
 and to the transportation system. 

    Subd. 7.    Energy conservation.  The commissioner, in 
 cooperation with the commissioner of commerce through the state 
 energy office, shall evaluate all modes of transportation in 
 terms of their levels of energy consumption.  The commissioner 
 of commerce shall provide the commissioner with projections of 
 the future availability of energy resources for transportation.  
 The commissioner shall use the results of this evaluation and 
 the projections to evaluate alternative programs and facilities 
 to be included in the statewide plan and to otherwise promote 
 the more efficient use of energy resources for transportation 
 purposes. 

    Subd. 8.    Salaries and expenses.  Salaries and 
 expenses of the department relating to highway purposes shall be 
 paid from moneys available in the trunk highway fund.  The funds 
 provided in sections 360.011 to 360.076 and 360.301 to 360.91 
 shall be expended by the commissioner of transportation in 
 accordance with the purposes prescribed by those sections.  
 Funds appropriated pursuant to the authority conferred by any 
 constitutional article shall be expended in conformity with the 
 purposes and uses authorized thereby. 

    HIST: 1976 c 166 s 3; Ex1979 c 1 s 16; 1980 c 534 s 14; 1980 c 
 558 s 1; 1980 c 614 s 96; 1981 c 356 s 180; 1982 c 424 s 130; 
 1982 c 617 s 17,18; 1983 c 289 s 115 subd 1; 1987 c 186 s 15; 
 1987 c 312 art 1 s 10 subd 2; 1991 c 298 art 1 s 2,3; 1994 c 635 
 art 2 s 6; 1997 c 159 art 2 s 37; 1998 c 403 s 17,18; 1Sp2001 c 
 4 art 6 s 25 

     174.031 Jurisdiction studies and plan. 

    Subdivision 1.    Studies directed.  The commissioner of 
 transportation shall establish and direct a series of highway 
 jurisdiction studies at the regional and multicounty level.  The 
 studies must be so designed and conducted as to constitute a 
 comprehensive review in each development region, as designated 
 under section 462.385, of the existing ownership of all roads 
 and proposed changes in jurisdiction of those roads. 

    Subd. 2. Repealed, 1989 c 155 s 5;1989 c 343 s 7 

    Subd. 3.    Studies commissioned.  (a) On and after 
 August 1, 1985, the commissioner shall enter into agreements 
 with regional development commissions by which the commissions 
 will conduct studies of highway jurisdiction in each region.  
 The studies must include: 

    (1) the jurisdiction of each road in the region; 

    (2) criteria for changes in jurisdiction, based on the 
 commissioner's guidelines; 

    (3) jurisdictional changes actually made since January 1, 
 1985; 

    (4) recommended changes in jurisdiction based on the 
 criteria; 

    (5) changes in financial obligations resulting from the 
 recommended jurisdictional change, based on the commissioner's 
 guidelines; 

    (6) estimated effects of the recommended jurisdictional 
 changes on highway staffing needs of each level of government in 
 the region; and 

    (7) estimated effects of the recommended jurisdictional 
 changes on law enforcement on the affected roads. 

    (b) In development regions where no regional development 
 commission is functioning, or where a regional development 
 commission declines to enter into an agreement to perform a 
 jurisdiction study, the jurisdiction study must be organized by 
 a district office of the department of transportation as 
 designated by the commissioner.  A district office so designated 
 must act through the counties in the development region and 
 through other public agencies the commissioner directs.  For 
 purposes of this section the metropolitan council is a regional 
 development commission. 

    (c) The agreements must provide that each entity 
 undertaking a study under this subdivision must produce and 
 present to the commissioner, not later than July 31, 1987, a 
 jurisdiction proposal for the region.  Each jurisdiction 
 proposal must identify each instance where a proposed 
 jurisdictional change is based on a factor that deviates from 
 the commissioner's guidelines and explain the reasons for each 
 deviation. 

    (d) The commissioner shall pay not more than two-thirds of 
 the cost of each study. 

    Subd. 4.    State jurisdiction plan.  (a) Using the 
 jurisdiction proposals presented under subdivision 3, the 
 commissioner shall present, not later than March 1, 1988, to the 
 legislature a statewide highway jurisdiction plan.  The plan 
 must include: 

    (1) a compilation of all highway jurisdictional changes 
 actually made at all levels of government since January 1, 1985; 

    (2) all future jurisdictional changes recommended in the 
 jurisdiction proposals and approved by the commissioner; 

    (3) recommendations for changes in the statutory trunk 
 highway system needed to implement the recommended 
 jurisdictional changes; 

    (4) a recommendation as to the feasibility or desirability 
 of establishing a state jurisdictional transfer fund, including 
 if this fund is recommended, recommendations on control over the 
 fund, on amount of money made available to the fund, on highway 
 costs to be included in transfer payments made from the fund, 
 and on sources of revenue for the fund; and 

    (5) other statutory changes made necessary by the 
 recommended jurisdictional changes. 

 The commissioner may recommend, as an alternative to the fund in 
 clause (4), changes in the constitutional distribution of 
 highway user tax revenues. 

    (b) No recommended jurisdictional change in the plan may 
 require the upgrading of a road prior to a transfer as a 
 prerequisite for the transfer unless the upgrading is agreed to 
 by the affected units of government. 

    Subd. 5. Obsolete 

    HIST: 1Sp1985 c 10 s 29; 1988 c 629 s 40 

     174.04 Financial assistance; applications; disbursement. 

    Subdivision 1.    Review of application.  Any state 
 agency which receives an application from a regional development 
 commission, metropolitan council, public transit commission, 
 airport commission, port authority or other political 
 subdivision of the state, or any nonpublic organization, for 
 financial assistance for transportation planning, capital 
 expenditures or operations to any state or federal agency, shall 
 first submit the application to the commissioner of 
 transportation.  The commissioner shall review the application 
 to determine whether it contains matters that substantially 
 affect the statewide transportation plan and priorities.  If the 
 application does not contain such matters, the commissioner 
 shall within 15 days after receipt return the application to the 
 applicant political subdivision or nonpublic organization for 
 forwarding to the appropriate agency.  If the application 
 contains such matters, the commissioner shall review and comment 
 on the application as being consistent with the plan and 
 priorities.  The commissioner shall return the application 
 together with comments within 45 days after receipt to the 
 applicant political subdivision or nonpublic organization for 
 forwarding with the commissioner's comments to the appropriate 
 agency. 

    Subd. 2.    Designated agent.  A regional development 
 commission, metropolitan council, public transit commission, 
 airport commission, port authority, or any other political 
 subdivision of the state, or any nonpublic organization, may 
 designate the commissioner as its agent to receive and disburse 
 funds by entering into an agreement with the commissioner 
 prescribing the terms and conditions of the receipt and 
 expenditure of the funds in accordance with federal and state 
 laws, rules, and regulations. 

    Subd. 3.    Exceptions.  The provisions of this section 
 shall not be construed as altering or amending in any way the 
 funding procedures specified in section 161.36, 360.016 or 
 360.0161. 

    HIST: 1976 c 166 s 4; 1986 c 444; 1996 c 455 art 3 s 29 

     174.05 Pollution control agency; rules and standards. 

    Subdivision 1.    Notification by pollution control 
 agency.  The commissioner of the pollution control agency 
 shall inform the commissioner of transportation of all 
 activities of the pollution control agency which relate to the 
 adoption, revision or repeal of any standard or rule concerning 
 transportation established pursuant to section 116.07.  Upon 
 notification the commissioner shall participate in those 
 activities.  Participation may include, but is not limited to, 
 access to all pertinent information collected or compiled by the 
 pollution control agency and transmittal to the commissioner of 
 the pollution control agency of information and expert opinions 
 concerning the ability of affected modes of transportation to 
 accomplish the desired objectives and the impact that 
 alternative methods of attaining those objectives would have on 
 present or planned transportation systems in the state. 

    Subd. 2.    Commissioner to submit review of proposed 
 rules.  Prior to public hearings on any rule concerning 
 transportation proposed by the pollution control agency, the 
 commissioner of transportation shall submit a written review of 
 those rules, including an analysis of their impact upon the 
 state's transportation system, and may propose alternative rules 
 or standards.  This report shall be made part of the record of 
 the hearing and shall be made available to any person prior to 
 the hearing. 

    Subd. 3.    Report by pollution control agency.  Upon 
 the adoption, revision or repeal of a rule concerning 
 transportation, the commissioner of the pollution control agency 
 shall publish a written report of the manner in which the 
 adopted rule reflects consideration of the factors specified in 
 section 116.07, subdivision 6, and the specific issues raised in 
 the commissioner of transportation's report. 

    HIST: 1976 c 166 s 5; 1985 c 248 s 70; 1987 c 186 s 15 

     174.06 Transfer of powers. 

    Subdivision 1.    Department of highways.  All powers, 
 duties, and functions heretofore vested in or imposed on the 
 commissioner of highways or the department of highways by 
 chapters 160, 161, 162, 163, 164, 165, 167, 169, 173, or 
 sections 473.405 to 473.449 or any other law relating to the 
 duties and powers of the commissioner of highways are 
 transferred to, vested in, and imposed on the commissioner of 
 transportation.  The position of the commissioner of highways 
 and the department of highways as heretofore constituted are 
 abolished. 

    Subd. 2.    Department of aeronautics.  All powers, 
 duties, and functions heretofore vested in or imposed on the 
 commissioner of aeronautics or the department of aeronautics by 
 sections 360.011 to 360.076, 360.301 to 360.73, 360.81 to 360.91 
 or any other law relating to the duties and powers of the 
 commissioner of aeronautics are transferred to, vested in, and 
 imposed on the commissioner of transportation.  The position of 
 the commissioner of aeronautics and the department of 
 aeronautics as heretofore constituted are abolished. 

    Subd. 3.    Department of public service.  All powers, 
 duties, and functions heretofore vested in or imposed on the 
 department of public service, the public utilities commission, 
 or the commissioner of the department of public service by 
 sections 174.60 to 174.63 are transferred to, vested in, and 
 imposed on the commissioner of transportation. 

    Subd. 4.  Repealed, 1977 c 454 s 49 

    Subd. 5.    Transfer approval of commissioner of 
 administration.  Any and all transfers of department of 
 public service personnel, records, and funds to the department 
 of transportation, made pursuant to the provisions of this 
 section, shall be subject to the approval of the commissioner of 
 administration. 

    Subd. 6. Repealed, 1981 c 253 s 48 

    Subd. 7.    Proposals for implementation.  (a) It is 
 the intent of the legislature that gas, oil, slurry, and other 
 pipelines, long-distance conveyor belt systems, and other modes 
 of transportation not now regulated by the state be constructed 
 and operated in a manner that best serves the public good and 
 complements other means of transportation.  

    (b) The commissioner of transportation shall submit to the 
 governor and the legislature, no later than January 1, 1979, 
 specific proposals, drafted in bill form if appropriate, to 
 implement this policy within the areas of responsibility 
 assigned to the department of transportation. 

    Subd. 8.    Recommendation for statutory revision.  The 
 commissioner shall submit, together with the proposals required 
 by subdivision 7, specific recommendations of language to update 
 all statutory sections which relate to the operation of the 
 department and are in need of revision.  The commissioner's 
 report shall give special consideration to sections affecting 
 rulemaking and public hearings, to language or provisions 
 rendered obsolete by passage of time, and to overall clarity and 
 brevity of the statutes. 

    HIST: 1976 c 166 s 6; 1977 c 124 s 1; 1980 c 614 s 123; 1986 c 
 444; 1987 c 186 s 15; 1993 c 13 art 2 s 1; 1999 c 86 art 1 s 43 

     174.10 Proceedings involving carriers. 

    Subdivision 1.    Notice of contested case; fee.  The 
 commissioner in any contested case that involves a motor carrier 
 or common carrier by rail as a party shall give reasonable 
 notice to representatives of associations or other interested 
 groups or persons who have registered their names with the 
 commissioner for that purpose, to all parties and to cities and 
 municipalities that the commissioner deems to be interested in 
 the proceeding.  The commissioner may prescribe an annual fee as 
 a charge to all registered groups or persons.  The fee must be 
 credited to the general fund.  This charge is to cover the 
 out-of-pocket costs involved in providing the notice. 

    Subd. 2.    Investigatory powers.  In all matters over 
 which the commissioner has regulatory, or enforcement authority, 
 the commissioner may issue subpoenas and compel the attendance 
 of witnesses and the production of all necessary papers, books, 
 records, documents, and other evidentiary material.  Any person 
 failing or refusing to appear to testify regarding any matter 
 about which the person may be lawfully questioned or to produce 
 any papers, books, records, documents, or other evidentiary 
 materials in the matter to be heard, after having been required 
 by a subpoena of the commissioner to do so may, upon application 
 by the commissioner to the district court in any district, be 
 ordered to comply therewith.  An administrative law judge in a 
 rulemaking or contested case proceeding may, on behalf of the 
 commissioner, issue subpoenas, administer oaths to witnesses, 
 and take their affirmations. Depositions may be taken within or 
 without the state by the commissioner or the commissioner's 
 designee in the manner provided by law for the taking of 
 depositions in civil actions.  A subpoena or other process or 
 paper may be served upon any person named therein, anywhere 
 within the state by any officer authorized to serve subpoenas or 
 other process or paper in civil actions, with the same fees and 
 mileage and in the same manner as prescribed by law for service 
 of process issued out of the district court of this state. 

    Subd. 3.    Prosecution.  In proceedings that involve a 
 motor carrier or common carrier by rail as a party, the matter 
 must be heard by the commissioner as authorized by law.  

    Subd. 4.    Lack of jurisdiction.  If, in any proceeding 
 the commissioner decides that the department does not have 
 jurisdiction, the commissioner shall issue an order dismissing 
 the proceeding and stating the ground of the dismissal. 

    HIST: 1976 c 166 s 8; 1980 c 534 s 15-17; 1984 c 640 s 32; 
 1986 c 444; 2001 c 213 s 13-15 

VALUE ENGINEERING PROPOSALS

     174.14 Value analysis of project; policy. 

    The legislature finds that the application of the 
 principles and techniques of value analysis in reducing the cost 
 of state construction projects is in the interest of the 
 efficient operation of state government.  It is therefore the 
 policy of the legislature to support, encourage and, where 
 necessary, to authorize the application of some or all of those 
 principles by agencies and departments of the state. 

    HIST: 1977 c 251 s 1 

     174.15 Definitions. 

    Subdivision 1.    Scope.  For the purposes of sections 
 174.14 to 174.17, and unless a different meaning is indicated by 
 the context, the terms defined in this section have the meanings 
 given them. 

    Subd. 2.    Construction project.  "Construction 
 project" means any state construction project undertaken by the 
 department of transportation. 

    Subd. 3.    Value analysis.  "Value analysis" means the 
 systematic and creative functional analysis of construction 
 projects, specifications, standards, practices and procedures 
 for the purposes of identifying and eliminating unnecessary 
 costs by developing modifications which satisfy required 
 functions of a project for the lowest cost in a manner 
 consistent with requirements for performance, reliability, 
 quality and maintainability. 

    Subd. 4.   Value engineering proposal.  "Value 
 engineering proposal" means a formal written proposal with 
 supporting documentation.  A value engineering proposal shall be 
 developed by application of value analysis principles, shall be 
 documented by a contractor or subcontractor pursuant to the 
 provisions of the construction contract, and shall suggest one 
 or more changes in the construction project, specifications, 
 standards, practices or procedures which would result in direct 
 and immediate net savings in terms of reducing the costs of the 
 construction contract. 

    HIST: 1977 c 251 s 2 

     174.16 Contract to include value analysis authorization. 

    All contracts for construction projects may contain 
 contract provisions which: 

    (1) authorize the contractor, with regard to specified 
 matters governed by the contract, and any subcontractor, with 
 regard to matters governed by the subcontracting agreement with 
 the contractor, to submit value engineering proposals as 
 provided in sections 174.15 to 174.17; 

    (2) specify such procedural and substantive requirements 
 for the preparation, development and documentation for value 
 engineering proposals as may be required for the particular 
 construction project; 

    (3) require that copies of all value engineering proposals 
 and all supporting documents be submitted to the commissioner of 
 transportation; and 

    (4) provide that if a value engineering proposal is adopted 
 for the construction project contract as provided in section 
 174.17, a supplemental agreement shall reduce contract payments 
 to the contractor or subcontractor that submitted the value 
 engineering proposal, by an amount equal to one-half of the 
 amount of direct and immediate net savings under the contract 
 resulting from the adoption of the value engineering proposal. 

    HIST: 1977 c 251 s 3 

     174.17 Evaluation of value engineering proposals. 

    Subdivision 1.    Investigate, analyze, and estimate 
 savings.  After receipt of a value engineering proposal and 
 supporting documents, the commissioner of transportation shall 
 investigate and analyze the value engineering proposal, estimate 
 the amount of the direct and immediate net savings in terms of 
 construction project contract costs which would result upon 
 adoption of the value engineering proposal. 

    Subd. 2.    Approval.  Subject to the provisions of 
 sections 174.15 to 174.17 and the provisions of any other 
 applicable law, if the commissioner of transportation 
 determines, based upon the reports and recommendations of the 
 department, that adoption of a value engineering proposal will 
 result in direct and immediate savings in the construction 
 project contract costs, the commissioner shall approve and 
 authorize the adoption of the implementing supplemental 
 agreement and the supplemental agreement shall be processed and 
 adopted as otherwise provided by law. 

    HIST: 1977 c 251 s 4; 1986 c 444 

HIGHWAY CONTRACT BIDS AND NOTICE, GENERALLY

     174.18 Advertisement of highway contract. 

    Notwithstanding anything in chapter 16C to the contrary, 
 all contracts for the repair, improvement, maintenance, or 
 construction of highways or highway bridges must be advertised 
 and let as provided by law for highway construction contracts.  

    HIST: 1998 c 386 art 1 s 32 

UNDERGROUND FUEL TANKS

     174.19 Petroleum storage tanks. 

    Specifications issued by the commissioner of transportation 
 relating to the procurement of underground fuel storage tanks by 
 the department of transportation and used by the department must 
 be written in such a way that they include all types of 
 fiberglass and steel underground storage tanks that have been 
 approved by the Minnesota pollution control agency and the 
 United States Environmental Protection Agency for underground 
 storage of fuel, or meet the standards for tank approval 
 established by those agencies. 

    HIST: 1999 c 88 s 1 

HIGH-OCCUPANCY AND ALTERNATIVE TRANSPORTATION

     174.21 Public transit assistance and transportation 
  management; purpose. 

    It is the purpose of sections 174.21 to 174.27 to: 

    (1) provide access to transit for persons who have no 
 alternative mode of transit available; 

    (2) increase the efficiency and productivity of public 
 transit systems; 

    (3) alleviate problems of automobile congestion and energy 
 consumption and promote desirable land use where such activities 
 are cost effective; 

    (4) maintain a state commitment to public transportation; 
 and 

    (5) meet the needs of individual transit systems to the 
 extent they are consistent with the other objectives stated 
 above.  

    HIST: 1977 c 454 s 18; 1978 c 793 s 66; 1982 c 586 s 1 

     174.22 Definitions. 

    Subdivision 1.    Scope.  For the purposes of sections 
 174.21 to 174.27 the following terms have the meanings given 
 them. 

    Subd. 2.    Commuter van.  "Commuter van" means a motor 
 vehicle used in a ride-sharing arrangement and used principally 
 to provide prearranged transportation of persons for a fee to or 
 from their place of employment or to or from a transit stop 
 authorized by a local transit authority:  

    (1) when the vehicle is operated by a person who does not 
 drive the vehicle for that person's principal occupation but is 
 driving it only to or from that person's principal place of 
 employment or to or from a transit stop authorized by a local 
 transit authority; or 

    (2) when the vehicle is operated for personal use at other 
 times by an authorized driver. 

    Subd. 2a. Renumbered subd 2c 

    Subd. 2b.    Elderly and handicapped service.  "Elderly 
 and handicapped service" means transportation service provided 
 on a regular basis in urbanized or large urbanized areas and 
 designed exclusively or primarily to serve individuals who are 
 elderly or handicapped and unable to use regular means of public 
 transportation.  

    Subd. 2c.    Metropolitan area.  "Metropolitan area" has 
 the meaning given it in section 473.121.  

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

    Subd. 4. Repealed, 1994 c 628 art 3 s 209 

    Subd. 5.    Operating deficit.  "Operating deficit" 
 means the amount by which the total prudent operating expenses 
 incurred in the operation of the public transit system exceeds 
 the amount of operating revenue derived from the system. 

    Subd. 6.    Paratransit.  "Paratransit" means the 
 transportation of passengers by motor vehicle or other means of 
 conveyance by persons operating on a regular and continuing 
 basis and the transportation or delivery of packages in 
 conjunction with an operation having the transportation of 
 passengers as its primary and predominant purpose and activity, 
 but excluding regular route transit.  "Paratransit" includes 
 transportation by car pool and commuter van, point deviation and 
 route deviation services, shared-ride taxi service, dial-a-ride 
 service, and other similar services. 

    Subd. 7.    Public transit or transit.  "Public transit" 
 or "transit" means general or specific transportation service 
 provided to the public on a regular and continuing basis.  
 "Public transit" or "transit" includes paratransit and regular 
 route transit. 

    Subd. 8.    Regular route transit.  "Regular route 
 transit" means transportation of passengers for hire by a motor 
 vehicle or other means of conveyance by any person operating on 
 a regular and continuing basis as a common carrier on fixed 
 routes and schedules.  "Regular route transit" does not include 
 transportation of children to or from school or of passengers 
 between a common carrier terminal station and a hotel or motel, 
 transportation by common carrier railroad or common carrier 
 railroads or by taxi, transportation furnished by a person 
 solely for that person's employees or customers, or paratransit. 

    Subd. 9. Repealed, 1Sp2001 c 8 art 2 s 76 

    Subd. 10. Renumbered subd 15 

    Subd. 11. Renumbered subd 14 

    Subd. 12.    Rural area service.  "Rural area service" 
 means a transportation service primarily operated in an area 
 having population centers of less than 2,500 persons.  

    Subd. 13. Renumbered subd 2b 

    Subd. 14.    Small urban area service.  "Small urban 
 area service" means a transportation service operating in an 
 area with a population between 2,500 and 50,000.  

    Subd. 15.    Urbanized area service.  "Urbanized area 
 service" means a transportation service operating in an urban 
 area of more than 50,000 persons but does not include elderly 
 and handicapped service, as defined in subdivision 13. 

    HIST: 1977 c 454 s 19; 1982 c 586 s 2; 1983 c 371 s 2; 1984 c 
 654 art 3 s 63-66; 1986 c 444 

     174.23 General powers and duties. 

    Subdivision 1.    General.  The commissioner shall have 
 all powers necessary and convenient to carry out the provisions 
 of sections 174.21 to 174.27 including the power to:  (a) review 
 applications for financial assistance, execute contracts, and 
 obligate and expend program funds, upon conditions and 
 limitations as the commissioner deems necessary for purposes of 
 program and project implementation, operation, and evaluation, 
 (b) accept and disburse federal funds available for the purposes 
 of sections 174.21 to 174.27, and (c) act upon request as the 
 designated agent of any eligible person for the receipt and 
 disbursal of federal funds.  The commissioner shall perform the 
 duties and exercise the powers under sections 174.21 to 174.27 
 in coordination with and in furtherance of statewide, regional, 
 and local transportation plans and transportation development 
 programs.  The commissioner shall set guidelines for financial 
 assistance under the public transit subsidy program.  The 
 commissioner shall present any proposed guidelines regarding 
 public transit financial assistance to a legislative committee 
 composed of equal numbers appointed by the house local and urban 
 affairs and senate transportation committees.  The commissioner 
 shall not implement any new guidelines regarding public transit 
 financial assistance, between the period January 1, 1981 to 
 April 15, 1982, without the prior approval of that committee.  

    Subd. 2.    Financial assistance.  The commissioner 
 shall seek out and select eligible recipients of financial 
 assistance under sections 174.21 to 174.27.  The commissioner 
 shall establish by rule the procedures and standards for review 
 and approval of applications for financial assistance submitted 
 to the commissioner pursuant to sections 174.21 to 174.27.  Any 
 applicant shall provide to the commissioner any financial or 
 other information required by the commissioner to carry out the 
 commissioner's duties.  The commissioner may require local 
 contributions from applicants as a condition for receiving 
 financial assistance.  Before the commissioner approves any 
 grant, the application for the grant shall be reviewed and 
 approved by the appropriate regional development commission only 
 for consistency with regional transportation plans and 
 development guides.  If an applicant proposes a project within 
 the jurisdiction of a transit authority or commission or a 
 transit system assisted or operated by a city or county, the 
 application shall also be reviewed by that commission, authority 
 or political subdivision for consistency with its transit 
 programs, policies and plans.  Any regional development 
 commission that has not adopted a transportation plan may review 
 but may not approve or disapprove of any application. 

    Subd. 3.    Technical and professional assistance.  The 
 commissioner shall offer, use, and apply the information 
 developed pursuant to sections 174.21 to 174.27 to assist and 
 advise political subdivisions and recipients of financial 
 assistance in the planning, promotion, development, operation, 
 and evaluation of programs and projects to accomplish the 
 purposes of sections 174.21 to 174.27.  The commissioner shall 
 seek out and select eligible recipients of such technical and 
 professional assistance. 

    Subd. 4.    Research; evaluation.  The commissioner 
 shall conduct research and shall study, analyze, and evaluate 
 concepts, techniques, programs, and projects to accomplish the 
 purposes of sections 174.21 to 174.27, including traffic 
 operations improvements, preferential treatment and other 
 encouragement of transit and paratransit services and 
 high-occupancy vehicles, improvements in the management and 
 operation of regular route transit services, special provision 
 for pedestrians and bicycles, management and control of parking, 
 changes in work schedules, and reduction of vehicle use in 
 congested and residential areas.  The commissioner shall examine 
 and evaluate such concepts, techniques, programs, and projects 
 now or previously employed or proposed in this state and 
 elsewhere.  The commissioner or an independent third party under 
 contract to the commissioner shall monitor and evaluate the 
 management and operation of public transit systems, services, 
 and projects receiving financial or professional and technical 
 assistance under sections 174.21 to 174.27 or other state 
 programs to determine the manner in which and the extent to 
 which such systems, services, and projects contribute or may 
 contribute to the purposes of sections 174.21 to 174.27.  The 
 commissioner shall develop and promote proposals and projects to 
 accomplish the purposes of sections 174.21 to 174.27 and shall 
 actively solicit such proposals from municipalities, counties, 
 legislatively established transit commissions and authorities, 
 regional development commissions, and potential vendors.  In 
 conducting such activities the commissioner shall make the 
 greatest possible use of already available research and 
 information.  The commissioner shall use the information 
 developed under sections 174.21 to 174.27 in developing or 
 revising the state transportation plan. 

    Subd. 5. Repealed, 1997 c 7 art 2 s 67 

    Subd. 6.    Driver training.  The commissioner may make 
 grants to any project eligible for assistance under sections 
 174.24 to 174.27, for the purpose of training drivers of 
 vehicles operated by the project.  The subjects of the training 
 may include safe driving skills, techniques of assisting elderly 
 and handicapped passengers and first aid.  The commissioner may 
 also contract with a public or private agency or institution to 
 provide driver training to drivers of vehicles utilized by 
 eligible projects.  

    Subd. 7.    Rulemaking; total operating cost.  The 
 commissioner shall by rule define "total operating cost" as the 
 term is used in carrying out the purposes of section 174.24. 
 "Total operating cost" may include provisions for a fee for 
 service.  The commissioner shall consult with eligible 
 recipients to the maximum extent feasible in formulating these 
 rules and develop necessary and reasonable changes in cost and 
 fee allowability provisions and financial examination procedures 
 where possible.  The rules are subject to the provisions in the 
 Administrative Procedure Act of sections 14.001 to 14.69.  

    Subd. 8.    Program administration.  The commissioner 
 shall assign the administration of the programs set forth in 
 sections 174.21 to 174.27 to a single division within the 
 department of transportation.  

    Subd. 9.    Cost reimbursement policies.  The 
 commissioner of transportation shall establish reimbursement 
 policies based on the cost principles of the federal acquisition 
 regulations to determine the reasonableness and allowability of 
 various costs, including overhead factors, direct salary costs, 
 and other costs of design and consultant contracts. 

    HIST: 1977 c 454 s 20; Ex1979 c 1 s 17,18; 1981 c 363 s 41; 
 1982 c 424 s 130; 1982 c 586 s 3,4; 1984 c 654 art 3 s 67,68; 
 1986 c 444; 1987 c 384 art 2 s 1; 1990 c 422 s 10; 1997 c 143 s 
 16 

     174.24 Public transit subsidy program. 

    Subdivision 1.    Establishment; purpose.  A public 
 transit participation program is established to carry out the 
 objectives stated in section 174.21 by providing financial 
 assistance from the state to eligible recipients outside of the 
 metropolitan area.  

    Subd. 2.    Eligibility; application.  Any legislatively 
 established public transit commission or authority, any county 
 or statutory or home rule charter city providing financial 
 assistance to or operating public transit, any private operator 
 of public transit, or any combination thereof is eligible to 
 receive financial assistance through the public transit 
 participation program.  Eligible recipients must be located 
 outside of the metropolitan area.  

    Subd. 2a.    Eligible activities.  Activities eligible 
 for assistance under the program include but are not limited to: 

    (1) planning and engineering design for transit services 
 and facilities; 

    (2) capital assistance to purchase or refurbish transit 
 vehicles and other capital expenditures necessary to provide a 
 transit service; 

    (3) operating assistance as provided under subdivision 3b; 
 and 

    (4) other assistance for public transit services that 
 furthers the purposes of section 174.21. 

    Subd. 3.    Financial assistance.  Payment of financial 
 assistance shall be by contract between the commissioner and an 
 eligible recipient.  

    Subd. 3a.  Repealed, 1984 c 654 art 3 s 153 subd 1 

    Subd. 3b.    Operating assistance.  (a) The commissioner 
 shall determine the total operating cost of any public transit 
 system receiving or applying for assistance in accordance with 
 generally accepted accounting principles.  To be eligible for 
 financial assistance, an applicant or recipient shall provide to 
 the commissioner all financial records and other information and 
 shall permit any inspection reasonably necessary to determine 
 total operating cost and correspondingly the amount of 
 assistance which may be paid to the applicant or recipient.  
 Where more than one county or municipality contributes 
 assistance to the operation of a public transit system, the 
 commissioner shall identify one as lead agency for the purpose 
 of receiving money under this section.  

    (b) Prior to distributing operating assistance to eligible 
 recipients for any contract period, the commissioner shall place 
 all recipients into one of the following classifications:  
 urbanized area service, small urban area service, rural area 
 service, and elderly and handicapped service.  The commissioner 
 shall distribute funds under this section so that the percentage 
 of total operating cost paid by any recipient from local sources 
 will not exceed the percentage for that recipient's 
 classification, except as provided in an undue hardship case.  
 The percentages must be:  for urbanized area service and small 
 urban area service, 40 percent; for rural area service, 35 
 percent; and for elderly and handicapped service, 35 percent.  
 The remainder of the total operating cost will be paid from 
 state funds less any assistance received by the recipient from 
 any federal source.  For purposes of this subdivision "local 
 sources" means payments under section 174.242 plus all local 
 sources of funds and includes all operating revenue, tax levies, 
 and contributions from public funds, except that the 
 commissioner may exclude from the total assistance contract 
 revenues derived from operations the cost of which is excluded 
 from the computation of total operating cost.  Total operating 
 costs of the Duluth transit authority or a successor agency 
 shall not include costs related to the Superior, Wisconsin 
 service contract and the independent school district No. 709 
 service contract.  

    (c) If a recipient informs the commissioner in writing 
 after the establishment of these percentages but prior to the 
 distribution of financial assistance for any year that paying 
 its designated percentage of total operating cost from local 
 sources will cause undue hardship, the commissioner may reduce 
 the percentage to be paid from local sources by the recipient 
 and increase the percentage to be paid from local sources by one 
 or more other recipients inside or outside the classification, 
 provided that no recipient shall have its percentage thus 
 reduced or increased for more than two years successively.  If 
 for any year the funds appropriated to the commissioner to carry 
 out the purposes of this section are insufficient to allow the 
 commissioner to pay the state share of total operating cost as 
 provided in this paragraph, the commissioner shall reduce the 
 state share in each classification to the extent necessary. 

    Subd. 3c.    Nonoperating assistance.  The commissioner 
 shall determine the total cost of any planning and engineering 
 design, capital assistance, other capital expenditures, and 
 other assistance for public transit services that furthers the 
 purposes of section 174.21 for any public transit system 
 receiving or applying for the assistance in accordance with 
 generally accepted accounting principles.  To be eligible for 
 non-operating-cost financial assistance, an applicant or 
 recipient shall provide to the commissioner all financial 
 records and other information and shall permit any inspection 
 reasonably necessary to determine total cost and the amount of 
 assistance that may be paid to the applicant or recipient.  When 
 more than one county or municipality contributes assistance to 
 the operation of a public transit system, the commissioner shall 
 identify one as a lead agency for the purpose of receiving money 
 under this section.  The commissioner has the sole discretion to 
 determine the amount of state funds distributed to any recipient 
 for non-operating-cost assistance. 

    Subd. 4.  Repealed, 1984 c 654 art 3 s 153 subd 1 

    Subd. 5.    Method of payment, operating assistance.  
 Payments for operating assistance under this section shall be 
 made in the following manner:  

    (1) 50 percent of the total contract amount in the first 
 month of operation; 

    (2) 40 percent of the total contract amount in the seventh 
 month of operation; 

    (3) 9 percent of the total contract amount in the 12th 
 month of operation; and 

    (4) 1 percent of the total contract amount after the final 
 audit.  

    Subd. 5a.    Method of payment, nonoperating assistance. 
  Payments for planning and engineering design, eligible 
 capital assistance, and other eligible assistance for public 
 transit services furthering the purposes of section 174.21, 
 excluding operating assistance, shall be made in an appropriate 
 manner as determined by the commissioner. 

    Subd. 6.    Service contract.  (a) Any legislatively 
 established public transit commission or authority, county, or 
 statutory or home rule charter city that (1) is located outside 
 the metropolitan area, and (2) provides financial assistance to 
 or operates public transit, may provide paratransit as a 
 complement to fixed route service as required in United States 
 Code, title 42, section 12143, as amended through December 31, 
 1994, outside its jurisdictional boundaries. 

    (b) Service described in paragraph (a) may be provided only 
 if (1) the commission, authority, county, or city enters into a 
 contract for the service with a political subdivision, 
 individual, or private entity for the service, and (2) the 
 contract requires full or partial payment to the commission, 
 authority, county, or city for the cost of the service. 

    HIST: 1977 c 454 s 21; Ex1979 c 1 s 19-21; 1981 c 363 s 42,43; 
 3Sp1981 c 2 art 1 s 17; 1982 c 424 s 130; 1982 c 586 s 5-8; 1983 
 c 293 s 75; 1984 c 654 art 3 s 69-72; 1991 c 233 s 62; 1992 c 
 394 s 1-4; 1995 c 101 s 1; 1999 c 238 art 2 s 30; 1Sp2001 c 8 
 art 2 s 51 

*   NOTE:  Subdivision 3b was also amended by Laws 2001, First 
*Special Session chapter 5, article 3, section 9, to read as 
*follows: 

*   "Subd. 3b.    OPERATING ASSISTANCE.  (a) The 
*commissioner shall determine the total operating cost of any 
*public transit system receiving or applying for assistance in 
*accordance with generally accepted accounting principles.  To be 
*eligible for financial assistance, an applicant or recipient 
*shall provide to the commissioner all financial records and 
*other information and shall permit any inspection reasonably 
*necessary to determine total operating cost and correspondingly 
*the amount of assistance which may be paid to the applicant or 
*recipient.  Where more than one county or municipality 
*contributes assistance to the operation of a public transit 
*system, the commissioner shall identify one as lead agency for 
*the purpose of receiving money under this section.  

*   (b) Prior to distributing operating assistance to eligible 
*recipients for any contract period, the commissioner shall place 
*all recipients into one of the following classifications:  
*urbanized area service, small urban area service, rural area 
*service, and elderly and handicapped service.  The commissioner 
*shall distribute funds under this section so that the percentage 
*of total operating cost paid by any recipient from local sources 
*will not exceed the percentage for that recipient's 
*classification, except as provided in an undue hardship case.  
*The percentages must be:  for urbanized area service and small 
*urban area service, 40 percent; for rural area service, 35 
*percent; and for elderly and handicapped service, 35 percent.  
*The remainder of the total operating cost will be paid from 
*state funds less any assistance received by the recipient from 
*any federal source.  For purposes of this subdivision "local 
*sources" means payments under section 174.242 plus all local 
*sources of funds and includes all operating revenue, tax levies, 
*and contributions from public funds, except that the 
*commissioner may exclude from the total assistance contract 
*revenues derived from operations the cost of which is excluded 
*from the computation of total operating cost.  Total operating 
*costs for the Duluth transit authority or a successor agency 
*shall not include costs related to the Superior, Wisconsin 
*service contract and the independent school district No. 709 
*service contract.  

*   (c) If a recipient informs the commissioner in writing 
*after the establishment of these percentages but prior to the 
*distribution of financial assistance for any year that paying 
*its designated percentage of total operating cost from local 
*sources will cause undue hardship, the commissioner may reduce 
*the percentage to be paid from local sources by the recipient 
*and increase the percentage to be paid from local sources by one 
*or more other recipients inside or outside the classification, 
*provided that no recipient shall have its percentage thus 
*reduced or increased for more than two years successively.  If 
*for any year the funds appropriated to the commissioner to carry 
*out the purposes of this section are insufficient to allow the 
*commissioner to pay the state share of total operating cost as 
*provided in this paragraph, the commissioner shall reduce the 
*state share in each classification to the extent necessary."

     174.242 Property tax replacement aid. 

    Subdivision 1.    Report of property tax revenues.  By 
 July 31, 2001, each system receiving assistance under section 
 174.24 must report the amount of its local share operating 
 revenues for 2001 that are derived from property taxes to the 
 commissioner of transportation.  The reported amounts must 
 include property tax revenues used to fund transit services in 
 excess of the services provided under contract with the 
 department of transportation.  The reports shall separately 
 identify the property tax revenues by the taxing jurisdiction 
 from which the revenues were received.  All general fund 
 revenues provided by a local government unit in Minnesota shall 
 be considered property tax revenues, except for revenues 
 received from school districts.  The portion of the St. Cloud 
 metropolitan area transit commission's homestead and 
 agricultural credit aid attributable to transit operating 
 expenses shall be considered property tax revenues. 

    Subd. 2.    Verification by commissioner.  The 
 commissioner shall examine the reports submitted under 
 subdivision 1, and adjust the revenue amounts reported if they 
 are determined to be in error.  The commissioner may require a 
 system to provide whatever information is necessary to assist in 
 determining the accuracy of the reported amounts. 

    Subd. 3.    Replacement aid payments.  Each system shall 
 receive property tax replacement aid payments in calendar years 
 2002-2003 equal to (i) the proportion that the system's property 
 tax amount determined under subdivision 2 is of the total amount 
 determined under subdivision 2 for all systems, times (ii) the 
 projected total revenues for the greater Minnesota transit fund 
 for the full fiscal year that begins in the calendar year in 
 which the aid is payable.  A system's property tax replacement 
 aid for 2002 under this section may not exceed 106 percent of 
 its 2001 property tax amount determined under subdivision 2.  A 
 system's property tax replacement aid for 2003 under this 
 section may not exceed 106 percent of its 2002 property tax 
 replacement aid under this section.  The commissioner must 
 certify the replacement aid amounts for calendar years 2002-2003 
 to the commissioner of revenue by system and by taxing 
 jurisdiction by August 15 of the preceding year.  The 
 commissioner of revenue shall deduct the certified amounts from 
 each jurisdiction's levy limit.  Replacement aid amounts for the 
 St. Cloud metropolitan area transit commission and the Duluth 
 transit authority shall be deducted from the levy limit for each 
 of these jurisdictions as specified in chapter 458A.  The annual 
 payments to each system shall be made in two equal installments 
 on July 20 and November 20. 

    Subd. 4.    Report to legislature.  By January 1, 2003, 
 the commissioner of transportation, in consultation with the 
 commissioner of revenue, shall make a report to the legislature 
 containing recommendations for integrating the grant program 
 under section 174.24 with the property tax replacement aid 
 program under this section.  The recommendations shall attempt 
 to restructure the method of financing transit operations in 
 greater Minnesota in such a way as to minimize reliance on 
 property taxes, while allowing the necessary flexibility to 
 accommodate growth in service demands. 

    HIST: 1Sp2001 c 5 art 3 s 10 

  174.245 Repealed, 1992 c 394 s 5 

  174.25 Repealed, 1982 c 586 s 10 

     174.255 Paratransit program; accessibility; insurance. 

    Subdivision 1.    Handicapped accessibility.  The 
 commissioner shall require any paratransit project receiving 
 assistance under section 174.24 that includes the operation of 
 two or more vehicles other than automobiles or taxis to provide 
 at least one vehicle that is accessible to handicapped 
 individuals and may require additional accessible vehicles if 
 necessary to serve handicapped individuals expected to use the 
 project.  A vehicle is accessible if it is equipped to allow 
 transportation of an individual confined to a wheelchair or 
 using an orthopedic device. 

    Subd. 2.    Assistance in obtaining insurance.  In order 
 to reduce the expense of liability insurance required for 
 paratransit projects eligible for assistance under section 
 174.24, the commissioner and the commissioner of commerce shall 
 investigate the causes of high liability insurance costs and 
 shall take the appropriate administrative action to assist 
 paratransit projects to obtain liability insurance coverage from 
 qualified insurance carriers at the lowest available cost.  
 Appropriate administrative action includes:  (a) taking bids 
 from and negotiating and entering into contracts with qualified 
 carriers to provide liability insurance for eligible paratransit 
 projects that wish to be covered; and (b) providing technical 
 and administrative assistance to eligible paratransit projects 
 to assist them in securing low-cost liability insurance. 

    Subd. 3.    Operator assistance.  A person operating or 
 assisting the operation of a vehicle while employed by a program 
 such as "project mobility" may leave the vehicle to enter 
 premises in order to assist a person who does not require 
 emergency ambulance service to gain access and entrance to the 
 vehicle.  The assistance shall include assisting through the 
 first entrance to a building.  Operators of the special 
 transportation vehicles shall provide the necessary passenger 
 assistance for door-through-door service.  Assistance shall also 
 include assisting wheelchair passengers over any exterior steps 
 essential to either departure or destination buildings, subject 
 to both the steps and the wheelchair being in good repair.  If 
 an operator or assistant refuses to assist because of the 
 condition of the steps or the wheelchair, the operator of the 
 service shall send letters to the commissioner of transportation 
 and the person denied service detailing the corrective measures 
 necessary to qualify for service.  

    HIST: Ex1979 c 1 s 24; 1981 c 357 s 67; 1983 c 289 s 114 subd 
 1; 1984 c 655 art 1 s 92; 1987 c 384 art 2 s 41,42 

     174.256 Park-and-ride program. 

    Subdivision 1.    Purpose.  It is the purpose of this 
 section to encourage citizens of Minnesota to transfer from 
 low-occupancy vehicles to multioccupancy vehicles, to reduce the 
 use of the automobile and provide for more efficient usage of 
 existing facilities in heavily traveled corridors and congested 
 areas, to divert automobile drivers from parking spaces in metro 
 areas, to decrease low-occupancy vehicle miles driven and the 
 congestion, pollution, energy consumption, highway damage, and 
 other costs associated with highway use, and to increase the 
 efficiency and productivity of and benefit from public 
 investments in public park-and-ride facilities and systems in 
 the state, reducing the need for increases in urban land used 
 for parking.  It is also the purpose of this section to 
 encourage the use of vanpools, car pools, and ride sharing by 
 the citizens of the state.  

    Subd. 2.    Definitions.  For purposes of this section 
 the following terms have the meanings given them in this 
 subdivision:  

    (a) "Commissioner" means the commissioner of transportation.

    (b) "Park-and-ride facility" means a facility consisting of 
 a park-and-ride lot where commuters' automobiles are parked and, 
 within a reasonable walking distance, a station or some transfer 
 point where commuters board the transit mode.  

    (c) "Transit mode" includes transportation by bus, car 
 pool, van-pool, and other similar services.  

    (d) "Exclusive use park-and-ride lot" means a parking lot 
 that is intended to be used exclusively for park-and-ride 
 purposes, is constructed with public money, and is located 
 within 100 miles of a central business district.  

    (e) "Joint use park-and-ride lot" means a parking lot that 
 is intended to be used for other purposes in addition to park 
 and ride and is located within 100 miles of a central business 
 district.  

    (f) "Fringe parking lot" means a parking lot located 
 outside but near a central business district.  

    Subd. 3.    General powers and duties.  (a) The 
 commissioner shall have the power to:  

    (1) develop and monitor a comprehensive park-and-ride 
 facility program throughout the state.  The program shall 
 coordinate and provide money for the development of a statewide 
 program of park-and-ride facilities, including joint use 
 park-and-ride lots, exclusive use park-and-ride lots, and fringe 
 park-and-ride lots; 

    (2) offer, use, and apply the information developed 
 pursuant to clause (1) to assist and advise political 
 subdivisions and recipients of financial assistance in the 
 planning, promotion, development, operation, and evaluation of 
 park-and-ride service facilities.  The political subdivision or 
 eligible recipient is responsible for the repair and maintenance 
 of the facility by using local money; 

    (3) act upon request as the designated agent of any 
 eligible person for the receipt and disbursal of federal money; 

    (4) contract for or provide services as needed in the 
 design or construction of park-and-ride facilities; and 

    (5) establish rules necessary for implementation of the 
 program.  

    (b) The commissioner shall perform the duties and exercise 
 the powers under this section in coordination with and in 
 furtherance of statewide, regional, and local transportation 
 plans and transportation development programs.  

    Subd. 4.    Eligibility; applications.  A statutory or 
 home rule charter city, county, school district, independent 
 board or agency is eligible to receive financial assistance 
 through the park-and-ride grant program.  Applications for 
 grants shall be approved or denied by the commissioner within 
 120 days of receipt.  

    Subd. 5.    Evaluation.  The commissioner shall evaluate 
 or contract for the evaluation of park-and-ride programs 
 developed under this section and submit a report to the 
 legislature by January 15, 1981, including the following 
 information: 

    (1) the amounts of money spent or obligated for the 
 park-and-ride program by the commissioner and the persons 
 receiving those amounts; 

    (2) the number and type of public park-and-ride lots in use 
 and a physical description of each; 

    (3) the types of lots in use, number of individuals served, 
 and areas covered; 

    (4) a comparison of the cost of providing different types 
 of service; 

    (5) a review of the achievements or failures of the 
 project, problems encountered in implementation, and conclusions 
 and recommendations concerning future action. 

    HIST: 1980 c 579 s 14; 1Sp1981 c 4 art 2 s 13; 1985 c 248 s 70 

     174.257 Ride-sharing program. 

    Subdivision 1.    Requirements.  (a) The commissioner of 
 transportation shall establish a ride-sharing program in order 
 to advise citizens of the available alternatives to travel by 
 low-occupancy vehicles and the benefits derived from sharing 
 rides.  The program must provide citizens with necessary 
 information and opportunities for sharing rides, encourage 
 citizens to share rides, and assist citizens in obtaining access 
 to shared rides.  The program must make use of existing services 
 and agencies whenever possible.  The program must give priority 
 to assisting employers who will implement employee ride-sharing 
 programs.  

    (b) The services provided by the program must include:  

    (1) providing general information to potential ride-sharing 
 users; 

    (2) establishing procedures for the implementation of 
 ride-sharing programs by individuals, groups, corporations, or 
 local agencies; 

    (3) offering assistance to local governments and other 
 political subdivisions in implementing ride-sharing programs; 

    (4) providing technical assistance to those individuals, 
 groups, corporations, or local agencies; 

    (5) providing advice to individuals requesting assistance 
 in finding ride-sharing opportunities and programs; 

    (6) providing assistance in obtaining insured leased vans 
 and management assistance to individuals and persons 
 implementing ride-sharing programs.  

    Subd. 2.    No tax or license.  No political subdivision 
 may impose a tax on, or require a license for a ride-sharing 
 arrangement as defined in section 169.01, subdivision 63.  

    Subd. 3.    Vehicle use by political subdivision.  A 
 political subdivision may authorize the use of motor vehicles 
 which it owns or operates for ride-sharing arrangements for its 
 employees, and may establish reasonable reimbursement rates for 
 that use.  

    Subd. 4.    Vehicle use by state.  The state may 
 authorize the use of motor vehicles which it owns or operates 
 for ride-sharing arrangements for its employees, and shall 
 establish reasonable reimbursement rates for that use.  The 
 commissioner of administration shall by September 1, 1983, 
 establish a demonstration program for using state-owned 
 vehicles, other than commuter vans, for use in ride-sharing 
 arrangements for state employees.  

    HIST: 1980 c 579 s 15; 1980 c 618 s 13; 1983 c 311 s 7 

  174.26 Repealed, 1982 c 586 s 10 

  174.265 Repealed, 1984 c 654 art 3 s 153 subd 1 

     174.27 Public employer commuter van program. 

    Any statutory or home rule charter city, county, school 
 district, independent board, or agency may acquire or lease 
 commuter vans, enter into contracts with another public or 
 private employer to acquire or lease such vans, or purchase such 
 a service for the use of its employees.  The governing body of 
 any such city, county, or school district may by resolution 
 establish a commuter van revolving fund to be used to acquire or 
 lease commuter vans for the use of its employees.  Any payments 
 out of the fund shall be repaid to the fund out of revenues 
 derived from the use by the employees of the city, county, or 
 school district, of the vans so purchased or leased.  Any city, 
 county, or school district which establishes a commuter van 
 acquisition program or contracts for this service is authorized 
 to levy a tax annually on all taxable property in the 
 subdivision for the purpose of establishing a commuter van 
 revolving fund and of paying the administrative and promotional 
 costs of the program, which levy may be in excess of all charter 
 taxing limitations.  The governing body of any city, county, or 
 school district may by resolution terminate the commuter van 
 revolving fund and use the funds for other purposes authorized 
 by law. 

    HIST: 1977 c 454 s 24; 1989 c 277 art 4 s 17; 1992 c 511 art 5 
 s 5; 1994 c 505 art 2 s 3 

  174.28 Repealed, 1981 c 363 s 58 

     174.29 Coordination of special transportation service. 

    Subdivision 1.    Definition.  For the purpose of 
 sections 174.29 and 174.30 "special transportation service" 
 means motor vehicle transportation provided on a regular basis 
 by a public or private entity or person that is designed 
 exclusively or primarily to serve individuals who are elderly, 
 handicapped, or disabled and who are unable to use regular means 
 of transportation but do not require ambulance service, as 
 defined in section 144E.001, subdivision 3.  Special 
 transportation service includes but is not limited to service 
 provided by specially equipped buses, vans, taxis, and 
 volunteers driving private automobiles. 

    Subd. 2.    Coordination of services.  In order to 
 provide more adequate access to transportation service for the 
 elderly, handicapped and disabled with special transportation 
 needs and to more efficiently utilize public and private funds 
 expended for that purpose, all state agencies that assist, 
 provide, reimburse or regulate special transportation services 
 shall promote, support and facilitate coordination of those 
 services with other special services and with regular 
 transportation services offered to the general public. 

    Subd. 3.  Expired 

    HIST: Ex1979 c 1 s 27; 1982 c 556 s 1; 1986 c 420 s 4; 1987 c 
 209 s 39; 1987 c 384 art 2 s 43; 1997 c 199 s 14 

     174.295 Eligibility certification; penalty for fraud. 

    Subdivision 1.    Notice.  A provider of special 
 transportation service, as defined in section 174.29, receiving 
 financial assistance under section 174.24, shall include on the 
 application form for special transportation service, and on the 
 eligibility certification form if different from the application 
 form, a notice of the penalty for fraudulent certification under 
 subdivision 4. 

    Subd. 2.    Certifier statement.  A provider shall 
 include on the application or eligibility certification form a 
 place for the person certifying the applicant as eligible for 
 special transportation service to sign, and the person 
 certifying the applicant shall sign, stating that the certifier 
 understands the penalty for fraudulent certification and that 
 the certifier believes the applicant to be eligible. 

    Subd. 3.    Applicant statement.  A provider shall 
 include on the application form a place for the applicant to 
 sign, and the applicant shall sign, stating that the applicant 
 understands the penalty for fraudulent certification and that 
 the information on the application is true. 

    Subd. 4.    Misdemeanor.  A person is guilty of a 
 misdemeanor if: 

    (1) the person fraudulently certifies to the special 
 transportation service provider that the applicant is eligible 
 for special transportation service; or 

    (2) the person obtains certification for special 
 transportation service by misrepresentation or fraud. 

    HIST: 1993 c 326 art 4 s 4 

     174.30 Operating standards for special transportation 
  service. 

    Subdivision 1.    Applicability.  (a) The operating 
 standards for special transportation service adopted under this 
 section do not apply to special transportation provided by:  

    (1) a common carrier operating on fixed routes and 
 schedules; 

    (2) a volunteer driver using a private automobile; 

    (3) a school bus as defined in section 169.01, subdivision 
 6; or 

    (4) an emergency ambulance regulated under chapter 144. 

    (b) The operating standards adopted under this section only 
 apply to providers of special transportation service who receive 
 grants or other financial assistance from either the state or 
 the federal government, or both, to provide or assist in 
 providing that service; except that the operating standards 
 adopted under this section do not apply to any nursing home 
 licensed under section 144A.02, to any board and care facility 
 licensed under section 144.50, or to any day training and 
 habilitation services, day care, or group home facility licensed 
 under sections 245A.01 to 245A.19 unless the facility or program 
 provides transportation to nonresidents on a regular basis and 
 the facility receives reimbursement, other than per diem 
 payments, for that service under rules promulgated by the 
 commissioner of human services.  

    Subd. 2.    Rules.  (a) The commissioner of 
 transportation shall adopt by rule standards for the operation 
 of vehicles used to provide special transportation service which 
 are reasonably necessary to protect the health and safety of 
 individuals using that service.  The commissioner, as far as 
 practicable, consistent with the purpose of the standards, shall 
 avoid adoption of standards that unduly restrict any public or 
 private entity or person from providing special transportation 
 service because of the administrative or other cost of 
 compliance. 

    (b) Standards adopted under this section must include but 
 are not limited to: 

    (1) qualifications of drivers and attendants, including 
 driver training requirements that must be met before a driver 
 provides special transportation; 

    (2) safety of vehicles and necessary safety equipment; 

    (3) general requirements concerning inspection and 
 maintenance of vehicles, replacement vehicles, standard vehicle 
 equipment, and specialized equipment necessary to ensure vehicle 
 usability and safety for disabled persons; and 

    (4) minimum insurance requirements. 

    (c) The commissioner shall consult with the council on 
 disability before making a decision on a variance from the 
 standards. 

    Subd. 2a.    Vehicle and equipment safety; provider 
 responsibilities.  (a) Every special transportation service 
 provider shall systematically inspect, repair, and maintain, or 
 cause to be inspected, repaired, and maintained, the vehicles 
 and equipment subject to the control of the provider.  Each 
 vehicle and its equipment must be inspected daily.  A vehicle 
 may not be operated in a condition that is likely to cause an 
 accident or breakdown of the vehicle.  Equipment, including 
 specialized equipment necessary to ensure vehicle usability and 
 safety for disabled persons, must be in proper and safe 
 operating condition at all times. 

    (b) Each special transportation provider shall maintain the 
 following records for each vehicle: 

    (1) an identification of the vehicle, including make, 
 serial number, and year, and, if the vehicle is not owned by the 
 provider, the name and address of the person furnishing the 
 vehicle; 

    (2) a schedule of inspection and maintenance operations to 
 be performed; 

    (3) a record of inspections, repairs, and maintenance 
 showing the date and nature; 

    (4) a lubrication record; and 

    (5) a record of tests conducted to ensure that emergency 
 doors or windows and wheelchair lifts function properly. 

    Subd. 3.    Other standards; wheelchair securement.  (a) 
 A special transportation service that transports individuals 
 occupying wheelchairs is subject to the provisions of sections 
 299A.11 to 299A.18 concerning wheelchair securement devices.  
 The commissioners of transportation and public safety shall 
 cooperate in the enforcement of this section and sections 
 299A.11 to 299A.18 so that a single inspection is sufficient to 
 ascertain compliance with sections 299A.11 to 299A.18 and with 
 the standards adopted under this section.  Representatives of 
 the department of transportation may inspect wheelchair 
 securement devices in vehicles operated by special 
 transportation service providers to determine compliance with 
 sections 299A.11 to 299A.18 and to issue certificates under 
 section 299A.14, subdivision 4. 

    (b) In place of a certificate issued under section 299A.14, 
 the commissioner may issue a decal under subdivision 4 for a 
 vehicle equipped with a wheelchair securement device if the 
 device complies with sections 299A.11 to 299A.18 and the decal 
 displays the information in section 299A.14, subdivision 4. 

    Subd. 4.    Vehicle and equipment inspection; decal.  (a)
 The commissioner shall inspect or provide for the inspection of 
 vehicles at least annually.  In addition to scheduled annual 
 inspections and reinspections scheduled for the purpose of 
 verifying that deficiencies have been corrected, unannounced 
 inspections of any vehicle may be conducted.  

    (b) On determining that a vehicle or vehicle equipment is 
 in a condition that is likely to cause an accident or breakdown, 
 the commissioner shall require the vehicle to be taken out of 
 service immediately.  The commissioner shall require that 
 vehicles and equipment not meeting standards be repaired and 
 brought into conformance with the standards and shall require 
 written evidence of compliance from the operator before allowing 
 the operator to return the vehicle to service.  

    (c) The commissioner shall provide in the rules procedures 
 for inspecting vehicles, removing unsafe vehicles from service, 
 determining and requiring compliance, and reviewing driver 
 qualifications. 

    (d) The commissioner shall design a distinctive decal to be 
 issued to special transportation service providers with a 
 current certificate of compliance under this section.  A decal 
 is valid for one year from the last day of the month in which it 
 is issued.  A person who is subject to the operating standards 
 adopted under this section may not provide special 
 transportation service in a vehicle that does not conspicuously 
 display a decal issued by the commissioner. 

    Subd. 4a.    Certification of special transportation 
 provider.  The commissioner shall annually evaluate or provide 
 for the evaluation of each provider of special transportation 
 service regulated under this section and certify that the 
 provider is in compliance with the standards under this section. 

    Subd. 5.    Rules.  The rules authorized under this 
 section shall be adopted in accordance with the provisions of 
 the Administrative Procedure Act, sections 14.001 to 14.69. 

    Subd. 6.    Preemption of other requirements.  (a) 
 Notwithstanding any other law, ordinance, or resolution to the 
 contrary, an operator of special transportation service that has 
 been issued a current certificate of compliance under 
 subdivision 4a for vehicles used to provide that service is not 
 required to obtain any other state or local permit, license or 
 certificate as a condition of operating the vehicles for that 
 purpose.  This subdivision does not exempt any vehicle from the 
 requirements imposed on vehicles generally as a condition of 
 using the public streets and highways.  

    (b) The requirements of sections 169.781 to 169.783 and 
 chapter 221 do not apply to vehicles when they are being 
 operated under a current certificate of compliance issued by the 
 commissioner. 

    Subd. 7.    Enforcement.  No state agency, political 
 subdivision, or other public agency shall provide any capital or 
 operating assistance to or reimbursement for special 
 transportation service unless the operator providing the service 
 has a current certificate of compliance issued under subdivision 
 4a. 

    Subd. 8.    Administrative penalties.  The commissioner 
 may issue an order requiring violations of this section and the 
 operating standards adopted under this section to be corrected 
 and assessing monetary penalties of up to $1,000 for all 
 violations identified during a single inspection, investigation, 
 or audit.  Section 221.036 applies to administrative penalty 
 orders issued under this section or section 174.315.  The 
 commissioner shall suspend, without a hearing, a special 
 transportation service provider's certificate of compliance for 
 failure to pay, or make satisfactory arrangements to pay, an 
 administrative penalty when due. 

    Penalties collected under this section must be deposited in 
 the state treasury and credited to the trunk highway fund. 

    Subd. 9.    Complaint data; classification.  When 
 information is furnished to the department of transportation 
 that alleges a violation of this section, an operating standard 
 adopted under this section, or section 174.315, the following 
 data are classified as confidential data or protected nonpublic 
 data: 

    (1) names of complainants; 

    (2) complaint letters; and 

    (3) other unsolicited data when furnished by a person who 
 is not the subject of the data and who is not a department 
 employee. 

    HIST: Ex1979 c 1 s 28; 1982 c 424 s 130; 1982 c 556 s 2; 1984 
 c 654 art 5 s 58; 1987 c 88 s 1-7; 1987 c 354 s 8; 1987 c 384 
 art 2 s 1; 1989 c 209 art 2 s 1; 1989 c 318 s 6; 1990 c 422 s 
 10; 1992 c 578 s 12; 1993 c 339 s 1; 1995 c 155 s 3-8 

  174.31 Repealed, 1984 c 654 art 3 s 153 subd 1 

     174.315 Special transportation; ambulance service 
  prohibited. 

    Subdivision 1.    Prohibition.  Special transportation 
 services shall not provide or offer transportation to persons 
 who might reasonably require ambulance service, as defined in 
 section 144E.001, subdivision 3, while in the special 
 transportation vehicle.  The commissioner of transportation 
 shall investigate all complaints alleging violations of this 
 section.  When requested, the commissioner of health shall 
 assist the commissioner of transportation in determining whether 
 a violation occurred. 

    Subd. 2.    Data classified.  Data relating to an 
 individual's physical condition or medical treatment collected, 
 received, or maintained by the department of transportation 
 under this section are private data on individuals.  The 
 commissioner of transportation may disclose data classified as 
 private data on individuals to the commissioner of health to the 
 extent necessary to determine if a violation of this section 
 occurred. 

    Subd. 3.    Penalties.  Notwithstanding section 174.30, 
 subdivision 8, the commissioner of transportation may issue an 
 order assessing a monetary penalty of up to $10,000 for a 
 violation of this section.  The minimum penalty for a third 
 violation of this section within three years shall be revocation 
 of the certificate issued under section 174.30, subdivision 4a.  
 A person whose certificate is revoked under this section may 
 appeal the commissioner's action in a contested case proceeding 
 under chapter 14. 

    HIST: 1990 c 556 s 3; 1995 c 155 s 9; 1997 c 199 s 14 

     174.32 Transit assistance program. 

    Subdivision 1.    Establishment; purpose.  A transit 
 assistance program is established to provide transit assistance 
 within the state from the fund created in subdivision 2 to 
 eligible recipients for transit service activities as provided 
 in this section. 

    Subd. 2.    Transit assistance fund; distribution.  The 
 transit assistance fund receives money distributed under section 
 297B.09.  Eighty percent of the receipts of the fund must be 
 placed into a metropolitan account for distribution to 
 recipients located in the metropolitan area and 20 percent into 
 a separate account for distribution to recipients located 
 outside of the metropolitan area.  Except as otherwise provided 
 in this subdivision, the metropolitan council is responsible for 
 distributing assistance from the metropolitan account, and the 
 commissioner is responsible for distributing assistance from the 
 other account.  

    Subd. 3.    Eligible recipient.  A legislatively 
 established public transit commission; a public authority 
 organized and existing under chapter 398A; a county or statutory 
 or home rule charter city operating, intending to operate, or 
 providing financial assistance to a transit service; a rail 
 authority; or a private operator of public transit is eligible 
 for assistance under the program.  The National Railroad 
 Passenger Corporation, known as Amtrak, and any trolley system 
 outside the metropolitan area are not eligible for assistance 
 under the program. 

    Subd. 4.    Eligible service.  Transit services eligible 
 for assistance under the program include but are not limited to: 

    (1) public transit; 

    (2) light rail transit; 

    (3) commuter van, car pool, ride share, and park and ride; 
 and 

    (4) other services that further the purposes of section 
 174.21.  

    Subd. 5.    Eligible activity.  Activities eligible for 
 assistance under the program include but are not limited to: 

    (1) planning and engineering design for transit services; 

    (2) capital assistance to purchase or refurbish transit 
 vehicles, purchase rail lines and associated facilities for 
 light rail transit, purchase rights-of-way, and other capital 
 expenditures necessary to provide a transit service; and 

    (3) other assistance for public transit services.  

    Subd. 6.    Investment of transit assistance fund money. 
  For money deposited in the transit assistance fund on or 
 after January 15, 1985, the commissioner of transportation shall 
 certify to the state board of investment the amount of the 
 transit assistance fund that in the judgment of the commissioner 
 is not required for immediate use.  The certified amount of the 
 transit assistance fund not currently needed shall be invested 
 by the state board of investment subject to section 11A.25.  All 
 investment income and all investment losses attributable to the 
 investments must be credited to the transit assistance fund.  
 The commissioner of finance is the custodian of securities 
 purchased under this section. 

    HIST: 1984 c 654 art 3 s 74; 1Sp1985 c 10 s 78-81; 1988 c 684 
 art 2 s 4; 1989 c 339 s 1; 1993 c 353 s 1; 1994 c 628 art 3 s 15 

     174.35 Light rail transit. 

    The commissioner of transportation may exercise the powers 
 granted in this chapter and chapter 473, 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.  The commissioner shall not spend state 
 funds to study light rail transit unless the funds are 
 appropriated in legislation that identifies the route, including 
 the origin and destination. 

    HIST: 1993 c 353 s 2; 1Sp2001 c 8 art 2 s 52 

     174.36 Notice of studies of high-speed rail. 

    The commissioner shall notify the chairs of the senate and 
 house of representatives committees with jurisdiction over 
 transportation finance whenever the commissioner spends state 
 funds to study high-speed intercity passenger rail service. 

    HIST: 1Sp2001 c 8 art 2 s 53 

TRANSPORTATION SYSTEM FINANCING

     174.50 Minnesota state transportation fund. 

    Subdivision 1.    Legislative findings; purpose.  State 
 assistance is needed to supplement local effort and the highway 
 user tax distribution fund in financing capital improvements to 
 preserve and develop a balanced transportation system throughout 
 the state.  Such a system is a proper function and concern of 
 state government and necessary to protect the safety and 
 personal and economic welfare of all citizens.  It requires 
 capital expenditures for public facilities, improvements, and 
 equipment that are complementary, additional, and alternate to 
 highways and are a proper object for contracting public debt and 
 engaging in works of internal improvements under article XI, 
 section 5, clause (a) of the Constitution.  These expenditures 
 are needed to harmonize state and local highway systems with the 
 requirements of the federal interstate highway system, to avoid 
 harmful environmental impact of arterial highways on urban, 
 scenic, and recreational areas, and to provide auxiliary 
 facilities for the convenience and safety of persons crossing 
 highways and persons living and working adjacent to them.  
 Capital expenditures of this nature exceed requirements for 
 basic highway systems and should be funded from sources other 
 than the taxes and bonds authorized in article XIV of the 
 Constitution.  However, the improvements tend to reduce the cost 
 of maintenance of highways to the minimum required for 
 accommodation of traffic, and the cost may and shall continue to 
 be paid from taxes authorized in article XIV of the 
 Constitution.  Immediate improvement needs are reconstruction 
 and replacement of key bridges and approaches to remove 
 obstructions to the flow of traffic on state and county 
 highways, municipal streets and township roads and expedited 
 completion of the interstate highway system in Minnesota by 
 paying the state share of interstate highway segments, and a 
 portion of the local share of interstate highway substitution 
 projects when those interstate substitution projects are 
 approved in accordance with state and federal law. 

    Subd. 1a.    Rail line.  An additional need of the state 
 transportation system is the acquisition and betterment of rail 
 lines and right-of-way for preservation in the state rail bank 
 as provided in section 222.63.  

    Subd. 2.    Fund created.  A Minnesota state 
 transportation fund is created as a separate bookkeeping account 
 in the general books of account of the state, to record receipts 
 and disbursements of money appropriated from the fund to 
 agencies and subdivisions of the state for the acquisition and 
 betterment of public land, buildings, and capital improvements 
 needed for the development of the state transportation system. 

    Subd. 3.    Fund revenue; appropriation.  The state 
 treasurer shall deposit in the fund as received all proceeds of 
 Minnesota state transportation bonds, except accrued interest 
 and premiums; all other money appropriated by law for the 
 purposes of the fund; and all money granted to the state for 
 these purposes by the federal government or any agency thereof.  
 All such receipts are annually appropriated for the permanent 
 construction and improvement purposes of the fund and shall be 
 and remain available for expenditure in accordance with this 
 section and applicable federal laws until the purposes for which 
 the appropriations were made have been accomplished or abandoned.
 Upon certification to the commissioner of finance by the agency 
 or subdivision to which any appropriation of bond proceeds has 
 been made that the purpose thereof has been accomplished or 
 abandoned, any unexpended balance of the appropriation, unless 
 reappropriated by law, shall be transferred to the state bond 
 fund and is appropriated to reduce the amount of tax otherwise 
 required by the constitution to be levied for that fund.  No 
 money shall be transferred to the state transportation fund from 
 the highway user tax distribution fund or any other fund created 
 by article XIV of the Constitution. 

    Subd. 4.    Certification and disbursal for state project. 
  Before disbursement of an appropriation made from the fund to 
 the commissioner of transportation or any other officer or 
 agency of the state the commissioner shall certify to the 
 commissioner of finance that the project for which the funds are 
 appropriated has been reviewed by the proper regional 
 development commission or the metropolitan council as the case 
 may be, for consistency with the long-term comprehensive 
 development plans and guides for which that agency is 
 responsible. 

    Subd. 5.    Certification and disbursal for project of 
 political subdivision.  Before disbursement of an 
 appropriation made from the fund to the commissioner of 
 transportation for grants to subdivisions of the state, the 
 commissioner shall certify: 

    (1) that the project for which the grant is made has been 
 reviewed as provided in subdivision 4; 

    (2) that the project conforms to the program authorized by 
 the appropriation law and rules adopted by the department of 
 transportation consistent therewith; and 

    (3) that the financing of any estimated cost of the project 
 in excess of the amount of the grant is assured by the 
 appropriation of the proceeds of bonds or other funds of the 
 subdivision, or by a grant from an agency of the federal 
 government, within the amount of funds then appropriated to that 
 agency and allocated by it to projects within the state, and by 
 an irrevocable undertaking, in a resolution of the governing 
 body of the subdivision, to use all funds so made available 
 exclusively for the project, and to pay any additional amount by 
 which the cost exceeds the estimate through appropriation to the 
 construction fund of additional funds or the proceeds of 
 additional bonds to be issued by the subdivision. 

    Subd. 6.    Grant rules.  Procedures for application for 
 grants from the fund, conditions for their administration, and 
 criteria for priority, unless established in the laws 
 authorizing the grants, shall be established by rules of the 
 department of transportation consistent with those laws.  
 Criteria for determining priorities and amounts of grants shall 
 be based on consideration of: 

    (1) effectiveness of the project in eliminating a 
 deficiency in the transportation system; 

    (2) number of persons affected by the deficiency; 

    (3) economic feasibility; 

    (4) effect on optimum land use and other concerns of state 
 and regional planning; 

    (5) availability of other financing capability; and 

    (6) adequacy of provision for proper operation and 
 maintenance after construction. 

    Subd. 6a.    Grant for preliminary engineering of river 
 crossing.  (a) The commissioner may make a grant to any 
 political subdivision for preliminary engineering of a river 
 crossing which requires extensive studies and evaluations to 
 determine the environmental impact, location and design features 
 of the crossing.  A grant shall not exceed $300,000 for a single 
 bridge project and shall not be used for the preparation of 
 construction plans or specifications.  

    (b) Application for a grant shall be made by resolution of 
 the governing body of the subdivision proposing to construct or 
 reconstruct the bridge.  A grant under this subdivision is 
 subject to the procedures and criteria provided in subdivisions 
 4 to 6.  A grant shall also be subject to the priority ranking 
 established under the existing rules of the department if the 
 proposed bridge has been ranked under those rules.  No new rules 
 are required for the administration of the grant program 
 established by this subdivision.  

    Subd. 7.    Rules for administering funds and grants.  
 The commissioner of transportation shall develop rules, 
 standards and criteria, including bridge specifications, in 
 cooperation with road authorities of political subdivisions, for 
 use in the administration of funds appropriated to the 
 commissioner and for the administration of grants to 
 subdivisions.  The maximum use of standardized bridges is 
 encouraged.  Regardless of the size of the existing bridge, a 
 bridge or replacement bridge is eligible for assistance from the 
 state transportation fund if a hydrological survey indicates 
 that the bridge or replacement bridge must be ten feet or more 
 in length.  Funds appropriated to the commissioner from the 
 Minnesota state transportation fund shall be segregated from the 
 highway tax user distribution fund and other funds created by 
 article XIV of the Constitution. 

    HIST: 1976 c 339 s 1; 1977 c 454 s 26; 1979 c 280 s 3; 1981 c 
 338 s 1; 1981 c 361 s 16; 1984 c 412 s 1; 1999 c 230 s 18 

     174.51 Minnesota state transportation bonds. 

    Subdivision 1.    Purposes.  For the purpose of 
 providing money appropriated to agencies or subdivisions of the 
 state from the Minnesota state transportation fund for the 
 acquisition and betterment of public land, buildings, and 
 capital improvements needed for the development of the state 
 transportation system, when such appropriations or loans are 
 authorized by Laws 1976, chapter 339, section 3 or another law 
 and funds therefor are requested by the governor, the 
 commissioner of finance shall sell and issue bonds of the state 
 of Minnesota for the prompt and full payment of which, with 
 interest thereon, the full faith and credit and taxing powers of 
 the state are irrevocably pledged.  Bonds shall be issued 
 pursuant to this section only as authorized by a law specifying 
 the purpose thereof and the maximum amount of the proceeds 
 authorized to be expended for that purpose.  Any such law, 
 together with this section, constitutes complete authority for 
 the issue, and such bonds shall not be subject to restrictions 
 or limitations contained in any other law. 

    Subd. 2.    Sale; general obligations.  The bonds shall 
 be sold upon sealed bids and upon notice, at a price, in form 
 and denominations, bearing interest at a rate or rates, maturing 
 in amounts and on dates, without option of prior redemption or 
 subject to prepayment upon notice and at times and prices, 
 payable at a bank or banks within or outside the state, with or 
 without provisions for registration, conversion, exchange, and 
 issuance of temporary bonds or notes in anticipation of the sale 
 or delivery of definitive bonds, and in accordance with further 
 provisions, as the commissioner of finance shall determine 
 subject to the approval of the attorney general, but not subject 
 to the provisions of chapter 14, including section 14.386.  Each 
 bond shall mature within 20 years from its date of issue and 
 shall be executed by the commissioner of finance and attested by 
 the state treasurer under their official seals.  The signatures 
 on the bonds and on any interest coupons and the seals may be 
 printed or otherwise reproduced, except that each bond shall be 
 authenticated by the manual signature on its face of one of the 
 officers or of a person authorized to sign on behalf of a bank 
 designated by the commissioner of finance as registrar or other 
 authenticating agent.  The commissioner of finance shall 
 ascertain and certify to the purchasers of the bonds the 
 performance and existence of all acts, conditions, and things 
 necessary to make them valid and binding general obligations of 
 the state of Minnesota, subject to the approval of the attorney 
 general. 

    Subd. 3.    Expenses.  All expenses incidental to the 
 sale, printing, execution, and delivery of bonds pursuant to 
 this section, including but not limited to actual and necessary 
 travel and subsistence expenses of state officers and employees 
 for such purposes, shall be paid from the Minnesota state 
 transportation fund and the amounts necessary therefor are 
 appropriated from that fund. 

    Subd. 4.    Account; appropriation.  The commissioner of 
 finance shall maintain in the state bond fund a separate 
 bookkeeping account designated as the Minnesota state 
 transportation bond account, to record receipts and 
 disbursements of money transferred to the fund to pay Minnesota 
 state transportation bonds and interest thereon, and of income 
 from the investment of such money, which income shall be 
 credited to the account in each fiscal year in an amount equal 
 to the approximate average rate of return that year on all funds 
 invested by the state treasurer, as determined by the treasurer, 
 times the average balance in the account that year. 

    Subd. 5.    Money credited; appropriated.  The premium 
 and accrued interest received on each issue of Minnesota state 
 transportation bonds shall be credited to the bond account.  
 There shall also be credited to the bond account from the 
 general fund in the state treasury, on November 1 in each year, 
 a sum of money equal to the amount of the tax which article XI 
 of the Constitution would otherwise require to be levied for 
 collection in the following year, to increase the balance in the 
 account to an amount sufficient to pay principal and interest 
 due and to become due with respect to Minnesota state 
 transportation bonds.  All money so credited and all income from 
 the investment thereof is annually appropriated to the bond 
 account for the payment of such bonds and interest thereon, and 
 shall be available in the bond account prior to the levy of a 
 tax for the state bond fund in any year as required by article 
 XI of the constitution.  No money shall be transferred to the 
 Minnesota state transportation bond account from the highway 
 user tax distribution fund or any other fund created by article 
 XIV of the constitution.  The commissioner of finance and the 
 state treasurer are directed to make the appropriate entries in 
 the accounts of the respective funds. 

    Subd. 6.    Levy; transfer of funds; appropriations.  On 
 or before December 1 in each year, if the full amount 
 appropriated to the bond account in subdivision 5 has not been 
 credited thereto, the tax required by article XI of the 
 Constitution shall be levied upon all taxable property within 
 the state.  This tax shall be subject to no limitation of rate 
 or amount until all Minnesota state transportation bonds and 
 interest thereon are fully paid.  The proceeds of this tax are 
 appropriated and shall be credited to the state bond fund, and 
 the principal of and interest on the bonds are payable from such 
 proceeds, and the whole thereof, or so much as may be necessary, 
 is appropriated for such payments.  If at any time there is not 
 sufficient money from the proceeds of such taxes to pay the 
 principal and interest when due on Minnesota state 
 transportation bonds, such principal and interest shall be paid 
 out of the general fund in the state treasury, and the amount 
 necessary therefor is hereby appropriated. 

    HIST: 1976 c 339 s 2; 1982 c 424 s 130; 1983 c 301 s 143,144; 
 1Sp1985 c 14 art 4 s 29; 1995 c 233 art 2 s 56; 1997 c 187 art 5 
 s 25 

     174.52 Local road improvement fund. 

    Subdivision 1.    Fund created.  A local road 
 improvement fund is created in the state treasury.  The fund 
 consists of money transferred to the fund through appropriation, 
 gift, or grant. 

    Subd. 2.    Trunk highway corridor projects account.  A 
 trunk highway corridor projects account is established in the 
 local road improvement fund.  Money in the account is annually 
 appropriated to the commissioner of transportation for 
 expenditure as specified in this section.  Money in the account 
 must be used as grants or loans to statutory or home rule 
 charter cities, towns, and counties to assist in paying the 
 local share of trunk highway projects that have local costs that 
 are directly or partially related to the trunk highway 
 improvement and that are not funded or are only partially funded 
 with other state and federal funds.  The commissioner shall 
 determine the amount of the local share of costs eligible for 
 assistance from the account. 

    Subd. 3.    Advisory committee.  The commissioner shall 
 establish an advisory committee consisting of five members, 
 including: 

    (1) one county commissioner; 

    (2) one county engineer; 

    (3) one city engineer; 

    (4) one city council member or city administrator 
 representing a city with a population over 5,000; and 

    (5) one city council member or city administrator 
 representing a city with a population under 5,000.  The advisory 
 committee shall provide recommendations to the commissioner 
 regarding expenditures from the trunk highway corridor projects 
 account. 

    Subd. 4.    Local road account for routes of regional 
 significance.  A local road account for routes of regional 
 significance is established in the local road improvement fund.  
 Money in the account is annually appropriated to the 
 commissioner of transportation for expenditure as specified in 
 this section.  Money in the account must be used as grants or 
 loans to statutory or home rule charter cities, towns, and 
 counties to assist in paying the costs of constructing or 
 reconstructing city streets, county highways, or town roads with 
 statewide or regional significance that has not been fully 
 funded through other state, federal, or local funding sources. 

    Subd. 5.    Grant procedures and criteria.  The 
 commissioner shall establish procedures for statutory or home 
 rule charter cities, towns, and counties to apply for grants or 
 loans from the fund and criteria to be used to select projects 
 for funding. The commissioner shall establish these procedures 
 and criteria in consultation with representatives appointed by 
 the association of Minnesota counties, league of Minnesota 
 cities, and Minnesota township officers association.  The 
 criteria for determining project priority and the amount of a 
 grant or loan must be based upon consideration of: 

    (1) the availability of other state, federal, and local 
 funds; 

    (2) the regional significance of the route; 

    (3) effectiveness of the proposed project in eliminating a 
 transportation system deficiency; 

    (4) the number of persons who will be positively impacted 
 by the project; 

    (5) the project's contribution to other local, regional, or 
 state economic development or redevelopment efforts; and 

    (6) ability of the local unit of government to adequately 
 provide for the safe operation and maintenance of the facility 
 upon project completion. 

    Subd. 6.    Administrative costs.  A sum of 0.25 percent 
 of the total amount in the fund, other than amounts deposited in 
 the fund from the proceeds from the sale of state bonds, is 
 available to be used for administrative costs incurred by the 
 department in carrying out the provisions of this section. 

    HIST: 2002 c 393 s 55 

PROJECTS COMMISSION

     174.55 Major transportation projects commission. 

    Subdivision 1.    Creation and purpose.  The major 
 transportation projects commission shall review and comment on 
 proposed major transportation projects in which the department 
 of transportation is involved.  The commission does not expire. 

    Subd. 2.    Composition.  The major transportation 
 projects commission is composed of the governor or the 
 governor's designee; four citizen members appointed by the 
 governor and serving at the pleasure of the governor; seven 
 senators appointed by the subcommittee on committees of the 
 committee on rules and administration, three of whom must not be 
 members of the senate majority party; and seven members of the 
 house of representatives appointed by the speaker, three of whom 
 must not be members of the house majority party.  The 
 commissioner of transportation shall serve as a nonvoting member 
 unless the commissioner is the governor's designee.  The 
 commission shall elect a chair from among its members.  
 Nongovernment members of the commission shall receive 
 compensation in accordance with section 15.059, subdivision 3. 

    Subd. 3.    Duties.  The major transportation projects 
 commission shall review each report submitted under subdivision 
 4 and shall make comments on the report to the governor and 
 legislature by September 30 of each year.  

    Subd. 4.    Commissioner report.  The commissioner of 
 transportation shall report to the commission not later than 
 July 15 of each year.  The report must consist of a listing of 
 candidate projects that meet the criteria of major 
 transportation projects within the definition in subdivision 5, 
 and a listing of proposed projects for study that the 
 commissioner believes have the potential of being major 
 transportation projects.  The report must include the 
 commissioner's plan for funding and implementation of each 
 project. 

    Subd. 5.    Major transportation project.  A major 
 transportation project is a project that meets each of the 
 following criteria: 

    (1) involves the department of transportation; 

    (2) has a construction cost, in the year in which 
 construction is expected to begin, that exceeds 25 percent of 
 the estimated annual construction program of the department 
 division or construction district in which the project is 
 located; and 

    (3) is a critical element of the transportation system of 
 its region and the state.  

    Subd. 6.    Construction of transportation projects.  
 The department may not construct a major transportation project 
 without first submitting the project to the major transportation 
 projects commission.  Within any six-year period, the department 
 may not construct a transportation project consisting of 
 separate contiguous projects that do not individually qualify as 
 major transportation projects, but which in their entirety would 
 constitute a major transportation project, without first 
 submitting the project to the major transportation projects 
 commission. 

    HIST: 2000 c 479 art 1 s 19; 2001 c 161 s 30; 1Sp2001 c 8 art 
 2 s 54,55 

RAILROAD PASSENGER SERVICE

     174.60 Railroad passenger service provided. 

    The purpose and intent of sections 174.60 to 174.63 is to 
 provide for a balanced transportation system in the state, 
 required by the public convenience and necessity, by making 
 available rail passenger service not provided by the National 
 Railroad Passenger Corporation in its basic national rail 
 passenger system.  

    HIST: 1971 c 956 s 1 

     174.61 Definitions.  

    Subdivision 1.    Scope.  For the purposes of sections 
 174.60 to 174.63 the terms defined in this section have the 
 meanings given them.  

    Subd. 2.    Corporation.  "Corporation" means the 
 National Railroad Passenger Corporation created pursuant to the 
 Rail Passenger Service Act of 1970, Public Law Number 91-518.  

    Subd. 3.    Governmental unit.  "Governmental unit" 
 means a regional development commission, county, city or town.  

    HIST: 1971 c 956 s 2; 1973 c 123 art 5 s 7 

     174.62 Authority to enter into agreement. 

    The commissioner of transportation, any governmental unit, 
 or any combination thereof, may enter into any contracts or 
 agreements pursuant to Public Law Number 91-518 and in 
 conformance with state law governing contracts by state agencies 
 and governmental units, to reimburse the corporation for a 
 reasonable portion of any losses associated with the institution 
 of intercity rail passenger service by the corporation beyond 
 that included within the basic national rail passenger system. 

    HIST: 1971 c 956 s 3; 1976 c 166 s 6 subd 3 

     174.63 Public hearing; notice.  

    Before any contract or agreement, as provided in section 
 174.62, is entered into, the governing body of the governmental 
 unit shall hold a public hearing on such proposed contract or 
 agreement.  Notice of the time and place of said hearing shall 
 be published in one or more legal newspapers of general 
 circulation in the area once in each week for two successive 
 weeks prior to said hearing.  The published notice shall be in a 
 form determined by the governing body, which form shall be 
 sufficient in size and prominent in format in order to attract 
 the attention of the reader.  In any event the notice shall be 
 of a size at least two columns in width by six inches in 
 length.  The notice shall set forth the portion of any losses 
 that the governmental unit proposes to reimburse the corporation.

    HIST: 1971 c 956 s 4 

MOTOR CARRIERS AND RAIL CARRIERS

     174.64 Functions and powers relating to carriers. 

    Subdivision 1.    Commissioner's powers generally.  Some 
 of the functions of the commissioner of transportation, related 
 to motor carriers and common carriers by rail, are 
 quasi-judicial in nature.  The commissioner may make 
 investigations and determinations, hold hearings, prescribe 
 rules, and issue orders with respect to the control and conduct 
 of the carrier businesses coming within the commissioner's 
 jurisdiction as authorized by law.  

    Subd. 2.    Specific functions and powers.  (a) To the 
 extent allowed under federal law or regulation, the commissioner 
 shall further hold hearings and issue orders in cases brought on 
 the commissioner's own motion or by a third party in the 
 following areas:  

    (1) adequacy of services that carriers are providing to the 
 public, including the continuation, termination, or modification 
 of services and facilities; 

    (2) reasonableness of tariffs of rates, fares, and charges, 
 or a part or classification of a tariff; and 

    (3) issuing permits.  

    (b) For purposes of paragraph (a), clause (2), the 
 commissioner may authorize common carriers by rail and motor 
 carriers for hire to file tariffs of rates, fares, and charges 
 individually or by group.  Carriers participating in group rate 
 making have the free and unrestrained right to take independent 
 action either before or after a determination arrived at through 
 that procedure.  

    Subd. 3.    Subpoena power.  The commissioner shall have 
 subpoena power.  

    Subd. 4.    Hearings; notice.  With respect to those 
 matters within the commissioner's jurisdiction, the commissioner 
 shall receive, hear, and determine all petitions filed with the 
 commissioner in accordance with the procedures established by 
 law and may hold hearings and make determinations upon the 
 commissioner's own motion to the same extent, and in every 
 instance, in which the commissioner may do so upon petition.  
 Upon receiving petitions filed pursuant to sections 221.121, 
 subdivision 1, 221.151, and 221.55, the commissioner shall give 
 notice of the filing of the petition to representatives of 
 associations or other interested groups or persons who have 
 registered their names with the commissioner for that purpose 
 and to whomever the commissioner deems to be interested in the 
 petition.  The commissioner may grant or deny the request of the 
 petition 30 days after notice of the filing has been fully 
 given.  If the commissioner receives a written objection and 
 notice of intent to appear at a hearing to object to the 
 petition from any person within 20 days of the notice having 
 been fully given, the request of the petition must be granted or 
 denied only after a contested case hearing has been conducted on 
 the petition, unless the objection is withdrawn before the 
 hearing.  The commissioner may elect to hold a contested case 
 hearing if no objections to the petition are received.  If a 
 timely objection is not received, or if received and withdrawn, 
 and the request of the petition is denied without hearing, the 
 petitioner may request within 30 days of receiving the notice of 
 denial, and must be granted, a contested case hearing on the 
 petition. 

    HIST: 1980 c 534 s 2; 1983 c 293 s 76; 1986 c 468 s 1; 1999 c 
 238 art 2 s 32; 2001 c 213 s 16-18,30 

     174.65 Carrier hearings and appeals. 

    Subdivision 1.    Hearings.  All hearings related to 
 common carriers by rail or motor carriers and required to be 
 conducted by the commissioner of transportation must be 
 conducted pursuant to sections 14.001 to 14.69.  

    Subd. 2.    Appeals.  An appeal from an order of the 
 commissioner must be in accordance with chapter 14. 

    HIST: 1980 c 534 s 4; 1982 c 424 s 130; 1987 c 384 art 2 s 1; 
 1990 c 422 s 10; 2001 c 213 s 19,30 

     174.66 Continuation of carrier rules. 

    (a) Orders and directives in force, issued, or promulgated 
 under authority of chapters 174A, 216A, 218, 219, 221, and 222 
 remain and continue in force and effect until repealed, 
 modified, or superseded by duly authorized orders or directives 
 of the commissioner of transportation.  To the extent allowed 
 under federal law or regulation, rules adopted under authority 
 of the following sections are transferred to the commissioner of 
 transportation and continue in force and effect until repealed, 
 modified, or superseded by duly authorized rules of the 
 commissioner:  

    (1) section 218.041 except rules related to the form and 
 manner of filing railroad rates, railroad accounting rules, and 
 safety rules; 

    (2) section 219.40; 

    (3) rules relating to rates or tariffs, or the granting, 
 limiting, or modifying of permits or certificates of convenience 
 and necessity under section 221.031, subdivision 1; 

    (4) rules relating to the sale, assignment, pledge, or 
 other transfer of a stock interest in a corporation holding 
 authority to operate as a permit carrier as prescribed in 
 section 221.151, subdivision 1; 

    (5) rules relating to rates, charges, and practices under 
 section 221.161, subdivision 4; and 

    (6) rules relating to rates, tariffs, or the granting, 
 limiting, or modifying of permits under sections 221.121 and 
 221.151.  

    (b) The commissioner shall review the transferred rules, 
 orders, and directives and, when appropriate, develop and adopt 
 new rules, orders, or directives. 

    HIST: 1980 c 534 s 6; 1983 c 293 s 77; 1985 c 299 s 14; 1998 c 
 403 s 19; 1999 c 238 art 2 s 33; 2001 c 213 s 20,30 

PUBLIC SAFETY RADIO COMMUNICATIONS

     174.70 Public safety radio communications. 

    Subdivision 1.    Authority of commissioner.  The 
 commissioner of transportation may exercise the powers granted 
 in this chapter and in sections 473.891 to 473.905, to plan and 
 implement the communications system as provided in sections 
 473.891 to 473.905. 

    Subd. 2.    State communications system implementation; 
 towers and other facilities.  (a) In order to facilitate 
 construction and maintenance of the state's communications 
 systems and to reduce the proliferation of communications 
 towers, the commissioner may, by purchase, lease, gift, 
 exchange, or other means, obtain sites for the erection of 
 towers and the location of equipment and may construct buildings 
 and structures needed for developing the state's communications 
 systems.  

    (b) The commissioner may negotiate with commercial wireless 
 service providers and other tower owners to obtain sites, 
 towers, and equipment.  Notwithstanding sections 161.433, 
 161.434, 161.45, and 161.46, the commissioner may by agreement 
 lease, allow, or permit commercial wireless service providers or 
 other tower owners to install privately owned equipment on 
 state-owned lands, buildings, and other structures under the 
 jurisdiction of the commissioner when it is practical and 
 feasible to do so.  The commissioner shall annually publish a 
 list of state-owned tower sites that are available to commercial 
 wireless service providers and other tower owners for 
 installation of their equipment on a first-come, first-served 
 basis for each tower or site.  The commissioner may not make 
 agreements that grant the exclusive use of towers.  After the 
 commissioner has agreed to make space available on a specific 
 tower or at a specific site, the commissioner shall charge a 
 site use fee for the value of the real property or structure 
 made available.  In lieu of a site use fee, the commissioner may 
 make agreements with commercial wireless service providers or 
 other tower owners to place state equipment on privately owned 
 towers and may accept improvements such as tower reinforcement, 
 reconstruction, site development, or other site improvements to 
 the state's communications system facilities or real or personal 
 property.  

    (c) This section does not create a right to install 
 privately owned towers on the trunk highway right-of-way. 

    Subd. 3.    Deposit of fees; appropriation.  Fees 
 collected under subdivision 2 must be deposited in the trunk 
 highway fund.  The fees collected are appropriated to the 
 commissioner to pay for developing and maintaining the 
 communications systems that serve state agencies. 

    HIST: 1995 c 195 art 1 s 1; 1999 c 238 art 2 s 31; 1Sp2001 c 8 
 art 2 s 56,57 

COMMUTER RAIL

     174.80 Definitions. 

    Subdivision 1.    Terms.  For the purposes of sections 
 174.80 to 174.90, the terms defined in this section have the 
 meanings given them. 

    Subd. 2.    Advanced corridor plan.  "Advanced corridor 
 plan" means a commuter rail plan that: 

    (1) contains a physical design component that identifies 
 the physical design of facilities, including: 

    (i) location, length, and termini of routes; 

    (ii) maintenance facility locations; 

    (iii) safety improvements; 

    (iv) station locations and design; and 

    (v) related park-and-ride, parking, and other 
 transportation facilities; 

    (2) specifies track and signal improvements; 

    (3) addresses handicapped access; 

    (4) specifies intermodal coordination and connections with 
 bus and light rail transit operation and routes; 

    (5) projects ridership, capital costs, operating costs, and 
 revenues; 

    (6) identifies sources of funds for operating subsidies and 
 funding for final design, construction, and operation; 

    (7) describes an implementation method; 

    (8) describes a plan for public involvement and public 
 information; 

    (9) defines anticipated agreements with the railroads; and 

    (10) addresses land use impacts. 

 The preliminary design plan may include the draft environmental 
 impact statement for the proposed commuter rail facilities. 

    Subd. 3.    Preliminary engineering plan.  "Preliminary 
 engineering plan" means a commuter rail plan that includes those 
 items in the advanced corridor plan that relate to facilities 
 proposed for construction, but with additional detail and 
 specificity in satisfaction of applicable environmental 
 requirements. 

    Subd. 4.    Final design plan.  "Final design plan" 
 means a commuter rail plan that includes the items in the 
 advanced corridor plan and the preliminary engineering plan, but 
 with additional detail and specificity as needed for 
 construction and operation. 

    HIST: 1999 c 230 s 19 

     174.82 Commissioner's duties. 

    The commissioner shall be responsible for all aspects of 
 planning, developing, constructing, operating, and maintaining 
 commuter rail, including system planning, advanced corridor 
 planning, preliminary engineering, final design, construction, 
 negotiating with railroads, and developing financial and 
 operating plans.  The commissioner may enter into a memorandum 
 of understanding or agreement with a public or private entity, 
 including a regional railroad authority, a joint powers board, 
 and a railroad, to carry out these activities. 

    HIST: 1999 c 230 s 20 

     174.84 Commuter rail system planning. 

    Subdivision 1.    General plan requirements.  By January 
 15, 2000, the commissioner shall adopt a commuter rail system 
 plan to ensure that if commuter rail facilities are acquired, 
 developed, constructed, owned, and operated in Minnesota, these 
 activities will be done in an efficient, cost-effective manner, 
 and in coordination with buses and other transportation modes 
 and facilities.  The commissioner shall consult with affected 
 regional railroad authorities and may incorporate into its plan 
 elements of the plans of regional railroad authorities in order 
 to avoid duplication of efforts.  The commissioner may 
 periodically update the system plan. 

    Subd. 2.    Approval of commuter rail system plan.  The 
 commuter rail system plan must be approved by metropolitan 
 planning organizations in areas in which commuter rail will be 
 located before the commissioner may begin final design of 
 commuter rail facilities.  Following approval of the plan, the 
 commissioner shall act in conformity with the plan.  The 
 commissioner shall ensure that final design plans are consistent 
 with the commuter rail plan. 

    Subd. 3.    Engineering standards.  The plan must 
 include engineering standards that provide for integrated 
 operation of all commuter rail equipment, facilities, and 
 services, including security, station design parameters, fare 
 box systems, and safety. 

    Subd. 4.    Integration of system.  The commissioner and 
 metropolitan planning organizations shall ensure that if 
 commuter rail facilities are planned, designed, and implemented 
 in Minnesota, they will be planned, designed, and implemented in 
 such a way as to move transit users to, from, and within the 
 metropolitan area, and to provide a unified, integrated, and 
 efficient multimodal transportation system with rail transit 
 lines that interface with each other and with other 
 transportation facilities. 

    HIST: 1999 c 230 s 21 

     174.86 Commuter rail plan; review. 

    Subdivision 1.    Advanced corridor plan; public hearing. 
  Before a final design plan is prepared for commuter rail 
 facilities, the commissioner must hold a public hearing on the 
 physical design component of the advanced corridor plan.  The 
 commissioner must provide appropriate public notice of the 
 hearing and publicity to ensure that affected parties have an 
 opportunity to present their views at the hearing.  The 
 commissioner shall summarize the proceedings and testimony and 
 maintain the record of a hearing held under this subdivision, 
 including any written statements submitted. 

    Subd. 2.    Physical design component; local 
 participation.  At least 30 days before the hearing under 
 subdivision 1, the commissioner shall submit the physical design 
 component of the advanced corridor plan to the governing body of 
 each statutory and home rule charter city, county, and town in 
 which the route is to be located.  Within 45 days after the 
 hearing under subdivision 1, the city, county, or town shall 
 review and comment on the plan.  Within 45 days of the hearing, 
 a city or town shall approve or disapprove the location and 
 design of the station to be located in the city or town.  A city 
 or town that disapproves shall describe specific amendments to 
 the plan that, if adopted, would cause the city or town to 
 withdraw its disapproval.  Failure to comment in writing within 
 45 days after the hearing is deemed to be accepted unless an 
 extension of time is agreed to by the metropolitan planning 
 organization and the commissioner of transportation. 

    Subd. 3.    Modification of advanced corridor plan.  
 After the hearing under subdivision 1, and after the receipt of 
 comment under subdivision 2, the commissioner may modify the 
 advanced corridor plan. 

    Subd. 4.    Advanced corridor plan; metropolitan planning 
 organization review.  Before constructing commuter rail 
 facilities, the commissioner shall submit the advanced corridor 
 plan to each metropolitan planning organization in which the 
 route is to be located.  The metropolitan planning organization 
 shall hold a hearing on the plan allowing the commissioner, 
 local governmental units, and other persons to present their 
 views as to whether the plan is consistent with the metropolitan 
 planning organization's development guide.  Within 60 days after 
 the hearing, the metropolitan planning organization shall review 
 the plan submitted by the commissioner to determine whether it 
 is consistent with the development guide.  If the plan is 
 consistent with the development guide, the metropolitan planning 
 organization shall approve it.  If the plan is not consistent 
 with the development guide, the metropolitan planning 
 organization shall submit to the commissioner proposed 
 amendments to the plan to make it consistent with the 
 development guide.  The commissioner shall incorporate the 
 proposed amendments into the final design plan. 

    Subd. 5.    Commuter rail corridor coordinating committee. 
  (a) A commuter rail corridor coordinating committee shall be 
 established to advise the commissioner on issues relating to the 
 alternatives analysis, environmental review, advanced corridor 
 planning, preliminary engineering, final design, implementation 
 method, construction of commuter rail, public involvement, land 
 use, service, and safety.  The commuter rail corridor 
 coordinating committee shall consist of: 

    (1) one member representing each significant funding 
 partner in whose jurisdiction the line or lines are located; 

    (2) one member appointed by each county in which the 
 corridors are located; 

    (3) one member appointed by each city in which advanced 
 corridor plans indicate that a station may be located; 

    (4) two members appointed by the commissioner, one of whom 
 shall be designated by the commissioner as the chair of the 
 committee; 

    (5) one member appointed by each metropolitan planning 
 organization through which the commuter rail line may pass; and 

    (6) one member appointed by the president of the University 
 of Minnesota, if a designated corridor provides direct service 
 to the university. 

    (b) A joint powers board existing on April 1, 1999, 
 consisting of local governments along a commuter rail corridor, 
 shall perform the functions set forth in paragraph (a) in place 
 of the committee. 

    HIST: 1999 c 230 s 22 

     174.88 Commuter rail funding. 

    Subdivision 1.    Federal fund applications.  The 
 commissioner, in cooperation with appropriate metropolitan 
 planning organizations, may apply for funding from federal, 
 state, regional, local, and private sources for commuter rail 
 facility construction, operation, implementation, maintenance, 
 and improvement. 

    Subd. 2.    Expenditure of state funds.  The 
 commissioner shall not spend any state funds for construction or 
 equipment of commuter rail facilities unless the funds have been 
 appropriated by law specifically for those purposes.  The 
 commissioner shall not spend state funds to study commuter rail 
 unless the funds are appropriated in legislation that identifies 
 the route, including origin and destination. 

    HIST: 1999 c 230 s 23; 2000 c 479 art 1 s 20; 1Sp2001 c 8 art 
 2 s 58 

     174.90 Commuter rail operation. 

    The commissioner may contract for operation of commuter 
 rail facilities with the metropolitan council or other public or 
 private entities and shall commence revenue service after an 
 appropriate period of start-up to ensure satisfactory 
 performance.  The commissioner shall coordinate with transit 
 providers to ensure integration of the commuter rail system with 
 bus and light rail transit service to avoid duplication of 
 service and to ensure the greatest access to commuter rail lines 
 in suburban and urban areas. 

    HIST: 1999 c 230 s 24