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S.F. No. 1986, 3rd Engrossment - 85th Legislative Session (2007-2008)   Posted on Mar 24, 2007
1.1A bill for an act
1.2relating to transportation appropriations; appropriating money for transportation,
1.3Metropolitan Council, and public safety activities; providing for fund transfers,
1.4general contingent accounts, and tort claims; providing for various fees and
1.5accounts; allocating county state-aid highway funds; allocating motor vehicle
1.6sales tax and motor vehicle lease sales tax; adjusting fuel tax; adjusting vehicle
1.7registration tax; imposing half-cent sales tax for transportation in metropolitan
1.8area; enabling local jurisdictions to levy half-cent sales tax for transportation;
1.9authorizing counties to levy wheelage tax; authorizing issuance of trunk highway
1.10bonds; providing for highway construction training and contracting related to
1.11disadvantaged business enterprise program; coordinating special transportation
1.12services statewide and establishing service standards; modifying light-rail
1.13transit governance; authorizing metropolitan council bonding; expanding transit
1.14taxing district; redistributing five percent of highway user tax distribution fund;
1.15requiring study of system to allow credit card payments of driver and vehicle
1.16service fees; removing 1999 restriction on construction of certain light rail
1.17transit facilities, and a 2001 restriction on the transit tax levy authority of the
1.18Metropolitan Council; creating task forces; requiring reports; making technical
1.19and clarifying changes; amending Minnesota Statutes 2006, sections 16A.88;
1.2053C.01, subdivision 2; 161.04, by adding a subdivision; 161.081; 162.07,
1.21subdivision 1, by adding subdivisions; 163.051; 168.011, subdivision 6; 168.013,
1.22subdivisions 1, 1a; 168.017, subdivision 3; 168.12, subdivision 5; 168.1255, by
1.23adding a subdivision; 168A.29, subdivision 1; 171.02, subdivision 3; 171.06,
1.24subdivision 2; 171.07, subdivisions 3a, 11; 171.20, subdivision 4; 171.29,
1.25subdivision 2; 174.03, subdivision 9, by adding subdivisions; 174.24, subdivision
1.262a; 174.255, by adding a subdivision; 174.29, by adding subdivisions; 296A.07,
1.27subdivision 3; 296A.08, subdivision 2; 297A.64, subdivision 2; 297A.815,
1.28subdivision 1, by adding a subdivision; 297A.94; 297B.01, subdivision 8;
1.29297B.09, subdivision 1; 299D.09; 473.166; 473.386, subdivision 3; 473.388,
1.30subdivision 4; 473.39, by adding a subdivision; 473.399; 473.3993, subdivision
1.313; 473.3994; 473.3997; 473.4051; 473.407, subdivision 1; 473.446, subdivisions
1.322, 8; 609.531, subdivision 1; proposing coding for new law in Minnesota
1.33Statutes, chapters 174; 296A; 297A; 398A; 473; repealing Minnesota Statutes
1.342006, sections 174.32; 473.123, subdivision 3d; 473.4461; Laws 1999, chapter
1.35230, section 44.
1.36BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1ARTICLE 1
2.2TRANSPORTATION APPROPRIATIONS

2.3
Section 1. SUMMARY OF APPROPRIATIONS.
2.4    The amounts shown in this section summarize direct appropriations, by fund, made
2.5in this article.
2.6
2008
2009
Total
2.7
General
$
104,614,000
$
104,538,000
$
209,152,000
2.8
Airports
25,568,000
25,683,000
51,251,000
2.9
C.S.A.H.
535,713,000
579,743,000
1,115,456,000
2.10
M.S.A.S.
143,849,000
150,822,000
294,671,000
2.11
Special Revenue
47,950,000
49,038,000
96,988,000
2.12
Highway User
8,938,000
9,238,000
18,176,000
2.13
Trunk Highway
1,323,645,000
1,399,833,000
2,723,478,000
2.14
Total
$
2,190,277,000
$
2,318,895,000
$
4,509,172,000

2.15
Sec. 2. TRANSPORTATION APPROPRIATIONS.
2.16    The sums shown in the columns marked "Appropriations" are appropriated to the
2.17agencies and for the purposes specified in this article. The appropriations are from the
2.18general fund, or another named fund, and are available for the fiscal years indicated
2.19for each purpose. The figures "2008" and "2009" used in this article mean that the
2.20appropriations listed under them are available for the fiscal year ending June 30, 2008, or
2.21June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
2.22year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
2.23year ending June 30, 2007, are effective the day following final enactment.
2.24
APPROPRIATIONS
2.25
Available for the Year
2.26
Ending June 30
2.27
2008
2009

2.28
Sec. 3. TRANSPORTATION
2.29
Subdivision 1.Total Appropriation
$
1,966,495,000
$
2,089,316,000
2.30The appropriations in this section are from
2.31the trunk highway fund, except when another
2.32fund is named.
2.33
Appropriations by Fund
2.34
2008
2009
2.35
General
19,486,000
19,251,000
3.1
Airports
25,518,000
25,633,000
3.2
C.S.A.H.
535,713,000
579,743,000
3.3
M.S.A.S.
143,849,000
150,822,000
3.4
Trunk Highway
1,241,929,000
1,313,867,000
3.5The amounts that may be spent for each
3.6purpose are specified in the following
3.7subdivisions.
3.8
Subd. 2.Multimodal Systems
3.9
(a) Aeronautics
3.10
(1) Airport Development and Assistance
20,298,000
20,298,000
3.11Of this amount, $6,000,000 the first year
3.12and $6,000,000 the second year are onetime
3.13appropriations and do not add to the
3.14airport development and assistance base
3.15appropriation.
3.16This appropriation is from the state
3.17airports fund and must be spent according
3.18to Minnesota Statutes, section 360.305,
3.19subdivision 4
.
3.20Of this appropriation $200,000 in the first
3.21year is to the Legislative Coordinating
3.22Commission for the administrative expenses
3.23of the Airport Funding Advisory Task Force
3.24and for other costs relating to the preparation
3.25of the report required by the task force,
3.26including the costs of hiring a consultant,
3.27if needed. Any remaining amount of this
3.28appropriation shall revert to the state airports
3.29fund.
3.30Notwithstanding Minnesota Statutes, section
3.3116A.28, subdivision 6, this appropriation is
3.32available for five years after appropriation.
4.1If the appropriation for either year is
4.2insufficient, the appropriation for the other
4.3year is available for it.
4.4
(2) Aviation Support and Services
4.5
Appropriations by Fund
4.6
Airports
5,195,000
5,310,000
4.7
Trunk Highway
854,000
869,000
4.8$65,000 the first year and $65,000 the second
4.9year are for the Civil Air Patrol.
4.10
(b) Transit
4.11
Appropriations by Fund
4.12
General
18,813,000
18,817,000
4.13
Trunk Highway
742,000
765,000
4.14
(c) Freight
4.15
Appropriations by Fund
4.16
General
358,000
369,000
4.17
Trunk Highway
5,042,000
5,190,000
4.18
(d) Rail
250,000
-0-
4.19$250,000 the first year is appropriated from
4.20the general fund to the commissioner of
4.21transportation for a grant to the Northstar
4.22Corridor Development Authority to fund
4.23advanced preliminary engineering, updated
4.24environmental documentation, property
4.25appraisals, and negotiations with the railroad
4.26to extend commuter rail service on the
4.27Burlington Northern Santa Fe rail line
4.28between Big Lake and Rice. This is a
4.29onetime appropriation and is available until
4.30spent and does not lapse.
4.31
Subd. 3.State Roads
4.32
(a) Infrastructure Investment and Planning
4.33
(1) Infrastructure Investment Support
172,283,000
177,024,000
5.1$266,000 the first year and $266,000 the
5.2second year are available for grants to
5.3metropolitan planning organizations outside
5.4the seven-county metropolitan area.
5.5$75,000 the first year and $75,000 the
5.6second year are for a transportation research
5.7contingent account to finance research
5.8projects that are reimbursable from the
5.9federal government or from other sources.
5.10If the appropriation for either year is
5.11insufficient, the appropriation for the other
5.12year is available for it.
5.13$600,000 the first year and $600,000
5.14the second year are available for grants
5.15for transportation studies outside the
5.16metropolitan area to identify critical
5.17concerns, problems, and issues. These
5.18grants are available (1) to regional
5.19development commissions, (2) in regions
5.20where no regional development commission
5.21is functioning, to joint powers boards
5.22established under agreement of two or
5.23more political subdivisions in the region to
5.24exercise the planning functions of a regional
5.25development commission, and (3) in regions
5.26where no regional development commission
5.27or joint powers board is functioning, to the
5.28department's district office for that region.
5.29Up to $1,000,000 the first year is for
5.30technical support of trunk highway
5.31congestion reduction under the United
5.32States Department of Transportation Urban
5.33Partnership program. Of this amount,
5.34$200,000 is for a grant to Hubert H.
6.1Humphrey Institute of Public Affairs for its
6.2participation in this program.
6.3$5,000,000 the first year is for a pilot project
6.4to demonstrate technologies that will allow
6.5for the future replacement of the gas tax with
6.6a fuel-neutral mileage charge.
6.7
(2) State Road Construction
723,259,000
745,913,000
6.8It is estimated that these appropriations will
6.9be funded as follows:
6.10
6.11
Federal Highway
Aid
193,463,000
350,442,000
6.12
Highway User Taxes
529,796,000
395,471,000
6.13The commissioner of transportation shall
6.14notify the chair of the Transportation Budget
6.15Division of the senate and the chair of the
6.16Transportation Finance Committee of the
6.17house of representatives of any significant
6.18events that should cause these estimates to
6.19change.
6.20This appropriation is for the actual
6.21construction, reconstruction, and
6.22improvement of trunk highways, including
6.23design-build contracts and consultant usage
6.24to support these activities. This includes the
6.25cost of actual payment to landowners for
6.26lands acquired for highway rights-of-way,
6.27payment to lessees, interest subsidies, and
6.28relocation expenses.
6.29Of these appropriations:
6.30(a) $2,000,000 the first year is to construct
6.31and install concrete barriers and cable median
6.32barriers on trunk highways, with priority
6.33given to trunk highways where crossover
6.34crashes have occurred, resulting in fatalities.
7.1(b) $70,000 the first year is for the state's
7.2share in reconstructing an intersection of
7.3Trunk Highway 60 and Cherry Street in
7.4Mazeppa.
7.5The commissioner may not plan, design,
7.6or construct a J-turn turnabout on Trunk
7.7Highway 169, within the city of Belle Plaine,
7.8or within one-half mile of the Belle Plaine
7.9city limits.
7.10The commissioner may transfer up to
7.11$15,000,000 each year to the transportation
7.12revolving loan fund.
7.13The commissioner may receive money
7.14covering other shares of the cost of
7.15partnership projects. These receipts are
7.16appropriated to the commissioner for these
7.17projects.
7.18
(3) Highway Debt Service
61,237,000
92,206,000
7.19$57,448,000 the first year and $82,183,000
7.20the second year are for transfer to the state
7.21bond fund. If this appropriation is insufficient
7.22to make all transfers required in the year for
7.23which it is made, the commissioner of finance
7.24shall notify the Committee on Finance of
7.25the senate and the Committee on Ways and
7.26Means of the house of representatives of
7.27the amount of the deficiency and shall then
7.28transfer that amount under the statutory open
7.29appropriation. Any excess appropriation
7.30cancels to the trunk highway fund.
7.31
(b) Infrastructure Operations and Maintenance
217,370,000
229,644,000
7.32
(c) Electronic Communications
8.1
Appropriations by Fund
8.2
General
9,000
9,000
8.3
Trunk Highway
4,916,000
5,060,000
8.4The general fund appropriation is to equip
8.5and operate the Roosevelt signal tower for
8.6Lake of the Woods weather broadcasting.
8.7
Subd. 4.Local Roads
8.8
(a) County State Aids
535,713,000
579,743,000
8.9This appropriation is from the county
8.10state-aid highway fund and is available until
8.11spent.
8.12
(b) Municipal State Aids
143,849,000
150,822,000
8.13This appropriation is from the municipal
8.14state-aid street fund and is available until
8.15spent.
8.16If an appropriation for either county state
8.17aids or municipal state aids does not exhaust
8.18the balance in the fund from which it is
8.19made in the year for which it is made, the
8.20commissioner of finance, upon request of
8.21the commissioner of transportation, shall
8.22notify the chair of the Transportation Finance
8.23Committee of the house of representatives
8.24and the chair of the Transportation Budget
8.25Division of the senate of the amount of the
8.26remainder and shall then add that amount
8.27to the appropriation. The amount added is
8.28appropriated for the purposes of county state
8.29aids or municipal state aids, as appropriate.
8.30If the appropriation for either county state
8.31aids or municipal state aids does exhaust
8.32the balance in the fund from which it is
8.33made in the year for which it is made,
8.34the commissioner of finance shall notify
9.1the chair of the Transportation Finance
9.2Committee of the house of representatives
9.3and the chair of the Transportation Budget
9.4Division of the senate of the amount by
9.5which the appropriation exceeds the balance
9.6and shall then reduce that amount from the
9.7appropriation.
9.8
Subd. 5.General Support and Services
9.9
(a) Department Support
9.10
Appropriations by Fund
9.11
Airports
25,000
25,000
9.12
Trunk Highway
39,622,000
40,521,000
9.13
(b) Buildings
9.14
Appropriations by Fund
9.15
General
56,000
56,000
9.16
Trunk Highway
16,604,000
16,675,000
9.17If the appropriation for either year is
9.18insufficient, the appropriation for the other
9.19year is available for it.
9.20
Subd. 6.Transfers
9.21(a) With the approval of the commissioner of
9.22finance, the commissioner of transportation
9.23may transfer unencumbered balances among
9.24the appropriations from the trunk highway
9.25fund and the state airports fund made in this
9.26section. No transfer may be made from the
9.27appropriation for state road construction. No
9.28transfer may be made from the appropriations
9.29for debt service to any other appropriation.
9.30Transfers under this paragraph may not be
9.31made between funds. Transfers between
9.32programs must be reported immediately
9.33to the chair of the Transportation Budget
9.34Division of the senate and the chair of the
10.1Transportation Finance Committee of the
10.2house of representatives.
10.3(b) The commissioner of finance shall
10.4transfer from the flexible account in the
10.5county state-aid highway fund $5,950,000
10.6the first year and $2,820,000 the second
10.7year to the municipal turnback account
10.8in the municipal state-aid street fund and
10.9$12,940,000 the first year and $15,330,000
10.10the second year to the trunk highway fund;
10.11and the remainder in each year to the county
10.12turnback account in the county state-aid
10.13highway fund.
10.14
10.15
Subd. 7.Use of State Road Construction
Appropriations
10.16Any money appropriated to the commissioner
10.17of transportation for state road construction
10.18for any fiscal year before fiscal year 2008 is
10.19available to the commissioner during fiscal
10.20years 2008 and 2009 to the extent that the
10.21commissioner spends the money on the
10.22state road construction project for which the
10.23money was originally encumbered during the
10.24fiscal year for which it was appropriated. The
10.25commissioner of transportation shall report
10.26to the commissioner of finance by August
10.271, 2007, and August 1, 2008, on a form
10.28the commissioner of finance provides, on
10.29expenditures made during the previous fiscal
10.30year that are authorized by this subdivision.
10.31
Subd. 8.Contingent Appropriation
10.32The commissioner of transportation, with
10.33the approval of the governor and the written
10.34approval of at least five members of a
10.35group consisting of the members of the
11.1Legislative Advisory Commission under
11.2Minnesota Statutes, section 3.30 , and the
11.3ranking minority members of the house of
11.4representatives and senate committees with
11.5jurisdiction over transportation finance, may
11.6transfer all or part of the unappropriated
11.7balance in the trunk highway fund to an
11.8appropriation (1) for trunk highway design,
11.9construction, or inspection in order to
11.10take advantage of an unanticipated receipt
11.11of income to the trunk highway fund or
11.12to take advantage of federal advanced
11.13construction funding, (2) for trunk highway
11.14maintenance in order to meet an emergency,
11.15or (3) to pay tort or environmental claims.
11.16Nothing in this subdivision authorizes the
11.17commissioner to increase the use of federal
11.18advanced construction funding beyond
11.19amounts specifically authorized. Any
11.20transfer as a result of the use of federal
11.21advanced construction funding must include
11.22an analysis of the effects on the long-term
11.23trunk highway fund balance. The amount
11.24transferred is appropriated for the purpose of
11.25the account to which it is transferred.

11.26
Sec. 4. METROPOLITAN COUNCIL
11.27
Subdivision 1.Total Appropriation
$
78,753,000
$
78,753,000
11.28The amounts that may be spent for each
11.29purpose are specified in the following
11.30subdivisions.
11.31
Subd. 2.Bus Transit
73,453,000
73,453,000
11.32This appropriation is for bus system
11.33operations.
11.34
Subd. 3.Rail Operations
5,300,000
5,300,000
12.1This appropriation is for operations of the
12.2Hiawatha light rail transit line.

12.3
Sec. 5. PUBLIC SAFETY
12.4
Subdivision 1.Total Appropriation
$
144,054,000
$
149,851,000
12.5
Appropriations by Fund
12.6
2008
2009
12.7
General
6,375,000
6,534,000
12.8
Trunk Highway
80,916,000
85,166,000
12.9
Highway User
8,813,000
9,113,000
12.10
Special Revenue
47,950,000
49,038,000
12.11The amounts that may be spent for each
12.12purpose are specified in the following
12.13subdivisions.
12.14
Subd. 2.Administration and Related Services
12.15
(a) Office of Communications
12.16
Appropriations by Fund
12.17
General
39,000
40,000
12.18
Trunk Highway
363,000
377,000
12.19
(b) Public Safety Support
12.20
Appropriations by Fund
12.21
General
3,245,000
3,336,000
12.22
Trunk Highway
3,331,000
3,420,000
12.23
Highway User
1,366,000
1,366,000
12.24$110,000 the first year and $28,000 the
12.25second year are appropriated from the
12.26general fund to cover the cost of a security
12.27coordinator for the 2008 Republican National
12.28Convention. These amounts are onetime
12.29appropriations and do not add to the public
12.30safety support base appropriation.
12.31$380,000 the first year and $380,000 the
12.32second year are for payment of public
12.33safety officer survivor benefits under
12.34Minnesota Statutes, section 299A.44. If the
13.1appropriation for either year is insufficient,
13.2the appropriation for the other year is
13.3available for it.
13.4$1,199,000 the first year and $1,367,000
13.5the second year are to be deposited in the
13.6public safety officer's benefit account. This
13.7money is available for reimbursements under
13.8Minnesota Statutes, section 299A.465.
13.9$508,000 the first year and $508,000
13.10the second year are for soft body armor
13.11reimbursements under Minnesota Statutes,
13.12section 299A.38.
13.13$792,000 the first year and $792,000
13.14the second year are appropriated from the
13.15general fund for transfer by the commissioner
13.16of finance to the trunk highway fund on
13.17December 31, 2007, and December 31, 2008,
13.18respectively, in order to reimburse the trunk
13.19highway fund for expenses not related to the
13.20fund. These represent amounts appropriated
13.21out of the trunk highway fund for general
13.22fund purposes in the administration and
13.23related services program.
13.24$610,000 the first year and $610,000 the
13.25second year are appropriated from the
13.26highway user tax distribution fund for
13.27transfer by the commissioner of finance to
13.28the trunk highway fund on December 31,
13.292007, and December 31, 2008, respectively,
13.30in order to reimburse the trunk highway
13.31fund for expenses not related to the fund.
13.32These represent amounts appropriated out
13.33of the trunk highway fund for highway
13.34user tax distribution fund purposes in the
13.35administration and related services program.
14.1$716,000 the first year and $716,000 the
14.2second year are appropriated from the
14.3highway user tax distribution fund for
14.4transfer by the commissioner of finance to
14.5the general fund on December 31, 2007, and
14.6December 31, 2008, respectively, in order to
14.7reimburse the general fund for expenses not
14.8related to the fund. These represent amounts
14.9appropriated out of the general fund for
14.10operation of the criminal justice data network
14.11related to driver and motor vehicle licensing.
14.12
(c) Technical Support Services
14.13
Appropriations by Fund
14.14
General
91,000
91,000
14.15
Trunk Highway
2,344,000
2,344,000
14.16
Highway User
19,000
19,000
14.17
Subd. 3.State Patrol
14.18
(a) Patrolling Highways
14.19
Appropriations by Fund
14.20
General
37,000
37,000
14.21
Trunk Highway
67,497,000
71,393,000
14.22
Highway User
92,000
92,000
14.23$2,060,000 the first year and $3,653,000 the
14.24second year are for the cost of adding 40
14.25State Patrol troopers.
14.26$1,335,000 the first year and $1,335,000 the
14.27second year are to cover fuel costs.
14.28
(b) Commercial Vehicle Enforcement
6,945,000
7,196,000
14.29This appropriation is from the trunk highway
14.30fund.
14.31
(c) Capitol Security
2,963,000
3,030,000
14.32The commissioner may not (1) spend
14.33any money from the trunk highway fund
14.34for capitol security or (2) permanently
15.1transfer any state trooper from the patrolling
15.2highways activity to capitol security.
15.3The commissioner may not transfer any
15.4money (1) appropriated for Department of
15.5Public Safety administration, the patrolling of
15.6highways, commercial vehicle enforcement,
15.7or driver and vehicle services to capitol
15.8security or (2) from capitol security.
15.9
Subd. 4.Driver and Vehicle Services
15.10
(a) Vehicle Services
15.11
Appropriations by Fund
15.12
Highway User
7,336,000
7,636,000
15.13
Special Revenue
18,696,000
18,973,000
15.14The base appropriation from the highway
15.15user tax distribution fund is $7,936,000 for
15.16fiscal year 2010 and $8,236,000 for fiscal
15.17year 2011.
15.18The special revenue fund appropriation is
15.19from the vehicle services operating account.
15.20
(b) Driver Services
15.21
Appropriations by Fund
15.22
Special Revenue
27,939,000
28,711,000
15.23
Trunk Highway
1,000
1,000
15.24The special revenue fund appropriation is
15.25from the driver services operating account.
15.26
Subd. 5.Traffic Safety
435,000
435,000
15.27This appropriation is from the trunk highway
15.28fund.
15.29The commissioner of public safety shall
15.30spend 50 percent of the money available
15.31to the state under Public Law 105-206,
15.32section 164, and the remaining 50 percent
15.33must be transferred to the commissioner
16.1of transportation for hazard elimination
16.2activities under United States Code, title 23,
16.3section 152.
16.4
Subd. 6.Pipeline Safety
1,315,000
1,354,000
16.5This appropriation is from the pipeline safety
16.6account in the special revenue fund.

16.7
16.8
Sec. 6. GENERAL CONTINGENT
ACCOUNTS
$
375,000
$
375,000
16.9
Appropriations by Fund
16.10
Trunk Highway
200,000
200,000
16.11
Highway User
125,000
125,000
16.12
Airports
50,000
50,000
16.13The appropriations in this section may
16.14only be spent with the approval of the
16.15governor and the written approval of at
16.16least five members of a group consisting of
16.17the members of the Legislative Advisory
16.18Commission under Minnesota Statutes,
16.19section 3.30, and the ranking minority
16.20members of the house of representatives and
16.21senate committees with jurisdiction over
16.22transportation finance.
16.23If an appropriation in this section for either
16.24year is insufficient, the appropriation for the
16.25other year is available for it.

16.26
Sec. 7. TORT CLAIMS
$
600,000
$
600,000
16.27To be spent by the commissioner of finance.
16.28This appropriation is from the trunk highway
16.29fund.
16.30If the appropriation for either year is
16.31insufficient, the appropriation for the other
16.32year is available for it.

16.33
Sec. 8. COMPENSATION ADJUSTMENTS
17.1The appropriations in this article, and any
17.2statutory appropriations from which state
17.3employee compensation is paid from any
17.4fund, include an amount sufficient to fund
17.5compensation increases of at least 3.25
17.6percent of the 2007 compensation base for
17.7the first year, compounded at the rate of 3.25
17.8percent for the second year. This amount
17.9must be used for that purpose and no other.

17.10    Sec. 9. LAFAYETTE BRIDGE.
17.11    The commissioner of transportation shall ensure that any reconstruction or
17.12improvement of the Lafayette Bridge segment of U.S. Highway 52 is compatible with the
17.13possibility of future implementation of transit, including light rail transit, on the bridge.

17.14    Sec. 10. HIGHWAY CONSTRUCTION IN ROCHESTER.
17.15    The commissioner of transportation shall proceed without delay to issue to the city
17.16of Rochester the necessary permits that allow the city to complete the construction of a
17.17new folded diamond interchange in the Northeast and Northwest quadrants at marked
17.18Trunk Highway 52 and 65th Street NW in the city of Rochester. The commissioner shall
17.19review the environmental documentation prepared by the city in a timely manner and shall
17.20issue the necessary construction permits without delay upon the issuance of a finding of
17.21no significant impact. The cost of the interchange design, right-of-way acquisition, and
17.22construction shall be the responsibility of the city of Rochester.

17.23    Sec. 11. FEDERAL FUNDS SPENDING AUTHORITY.
17.24    The commissioner of transportation may spend up to $5,000,000 from July 1, 2008,
17.25through June 30, 2013, in federal transit funds for capital assistance to public transit
17.26systems under Minnesota Statutes, section 174.24. This amount is in addition to any
17.27appropriations made by law for this purpose.

17.28    Sec. 12. COUNTY ROAD 3 OVERPASS TASK FORCE.
17.29    Subdivision 1. Task force established. The County Road 3 Overpass Task Force
17.30is established to plan the design, construction, and funding for a Scott County Road 3
17.31overpass over Trunk Highway 169.
18.1    Subd. 2. Task force membership. The task force is comprised of the following
18.2members:
18.3    (1) the commissioner of transportation or a designee;
18.4    (2) the mayor of Belle Plaine or a designee;
18.5    (3) a Scott County commissioner; and
18.6    (4) owners of property in the vicinity of the intersection, who may be assessed for
18.7the cost of the overpass, and who shall be appointed by the Scott County commissioner.
18.8    Subd. 3. Task force determinations. The task force shall determine:
18.9    (1) the preferred type of overpass or interchange needed at the Trunk Highway 169
18.10intersection with County Road 3;
18.11    (2) the schedule for beginning construction of the overpass or interchange; and
18.12    (3) an appropriate cost-sharing agreement involving the state, Scott County, the city
18.13of Belle Plaine, and private developers.
18.14    The task force shall submit its determinations to the appropriate lead agency, which
18.15shall prepare construction plans consistent with task force determinations.
18.16    Subd. 4. Traffic control. The commissioner of transportation shall maintain traffic
18.17control signals at the intersection of Trunk Highway 169 and Scott County Road 3, within
18.18the city of Belle Plaine, to allow for the movement of cross-traffic, until construction is
18.19commenced for a Scott County Road 3 overpass bridge over Trunk Highway 169.

18.20    Sec. 13. AIRPORT FUNDING ADVISORY TASK FORCE.
18.21    Subdivision 1. Task force established. An advisory task force on airport funding
18.22issues is established to study and make recommendations regarding the best methods for
18.23funding airports in the state and the state airports fund. The task force shall study:
18.24    (1) the adequacy of current sources of revenue for the state airports fund and airports
18.25in the state;
18.26    (2) policy considerations regarding the use of the sales tax on aircraft as a potential
18.27source of revenue for airports;
18.28    (3) how other states fund airports;
18.29    (4) projected aviation needs of the future, including required investments in aviation
18.30infrastructure;
18.31    (5) aircraft registration taxes; and
18.32    (6) other issues relating to the funding of airports as determined by the task force.
18.33    Subd. 2. Membership. (a) The task force is comprised of the following members:
19.1    (1) three members of the senate, including at least one member from the minority
19.2party, appointed by the Subcommittee on Committees of the Committee on Rules and
19.3Administration of the senate; and
19.4    (2) three members of the house of representatives, two appointed by the speaker of
19.5the house and one appointed by the minority leader.
19.6The appointing authorities must select members based on knowledge and experience in
19.7aviation funding issues. All appointments required by this paragraph must be completed
19.8by September 1, 2007.
19.9    (b) The chair of the task force may appoint additional nonvoting members to the task
19.10force, including, but not limited to, representatives of the following organizations:
19.11    (1) the Department of Transportation Aeronautics Office;
19.12    (2) the Aircraft Owners and Pilots Association;
19.13    (3) the Experimental Aircraft Association/ACAA;
19.14    (4) the Metropolitan Airports Commission;
19.15    (5) the Minnesota Aviation Trades Association;
19.16    (6) the Minnesota Business Aviation Association;
19.17    (7) the Minnesota Council of Airports;
19.18    (8) the Minnesota Seaplane Pilots Association;
19.19    (9) the National Business Aviation Association; and
19.20    (10) the Minnesota Wing, Civil Air Patrol.
19.21    (c) The director of the aeronautics office in the Department of Transportation shall
19.22convene the first meeting of the task force within two weeks after the legislative members
19.23have been appointed to the task force. The members shall elect a chairperson from their
19.24membership at the first meeting.
19.25    Subd. 3. Report. By February 15, 2008, the task force shall report its
19.26recommendations to the chairs of the legislative committees with jurisdiction over airports
19.27and aviation issues and to the legislature as required by Minnesota Statutes, section 3.195.
19.28    Subd. 4. Expenses. Per diem and expenses for members of the task force are as
19.29provided for under Minnesota Statutes, section 15.059.
19.30    Subd. 5. Expiration. This section expires after the submission of the report as
19.31required under subdivision 3.
19.32EFFECTIVE DATE.This section is effective the day following final enactment.

20.1ARTICLE 2
20.2FUEL TAX

20.3    Section 1. Minnesota Statutes 2006, section 296A.07, subdivision 3, is amended to
20.4read:
20.5    Subd. 3. Rate of tax. The gasoline excise tax is imposed at the following rates:
20.6(1) E85 is taxed at the rate of 14.2 21.3 cents per gallon;
20.7(2) M85 is taxed at the rate of 11.4 17.1 cents per gallon; and
20.8(3) all other gasoline is taxed at the rate of 20 30 cents per gallon.
20.9EFFECTIVE DATE.This section is effective July 1, 2007, and applies to all
20.10gasoline, undyed diesel fuel, and special fuel in distributor storage on July 1, 2007.

20.11    Sec. 2. Minnesota Statutes 2006, section 296A.08, subdivision 2, is amended to read:
20.12    Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:
20.13(a) Liquefied petroleum gas or propane is taxed at the rate of 15 22.5 cents per gallon.
20.14(b) Liquefied natural gas is taxed at the rate of 12 18 cents per gallon.
20.15(c) Compressed natural gas is taxed at the rate of $1.739 $2.609 per thousand cubic
20.16feet; or 20 30 cents per gasoline equivalent, as defined by the National Conference on
20.17Weights and Measures, which is 5.66 pounds of natural gas.
20.18(d) All other special fuel is taxed at the same rate as the gasoline excise tax as
20.19specified in section 296A.07, subdivision 2. The tax is payable in the form and manner
20.20prescribed by the commissioner.
20.21EFFECTIVE DATE.This section is effective July 1, 2007, and applies to all
20.22gasoline, undyed diesel fuel, and special fuel in distributor storage on July 1, 2007.

20.23    Sec. 3. [296A.081] ANNUAL ADJUSTMENT OF FUEL TAXES.
20.24(a) On April 1, 2009, and each April 1 thereafter, the commissioner of revenue
20.25shall recompute and publish the rate of each fuel tax provided for in sections 296A.07,
20.26subdivision 3, and 296A.08, subdivision 2. The new rate for each fuel tax must be
20.27calculated by multiplying the rate in effect at the time of the calculation by an amount
20.28obtained under paragraph (b). The new rate must be rounded to the nearest 0.1 cent and is
20.29effective on June 1 of each year.
20.30(b) Divide the annual average United States Consumer Price Index for all urban
20.31consumers, United States city average, as determined by the United States Department of
20.32Labor for the previous year by that annual average for the year before the previous year.
21.1EFFECTIVE DATE.This section is effective April 1, 2009.

21.2ARTICLE 3
21.3VEHICLE REGISTRATION TAX

21.4    Section 1. Minnesota Statutes 2006, section 168.013, subdivision 1a, is amended to
21.5read:
21.6    Subd. 1a. Passenger automobile; hearse. (a) On passenger automobiles as defined
21.7in section 168.011, subdivision 7, and hearses, except as otherwise provided, the tax shall
21.8be $10 plus an additional tax equal to 1.25 percent of the base value.
21.9(b) Subject to the classification provisions herein, "base value" means the
21.10manufacturer's suggested retail price of the vehicle including destination charge using list
21.11price information published by the manufacturer or determined by the registrar if no
21.12suggested retail price exists, and shall not include the cost of each accessory or item of
21.13optional equipment separately added to the vehicle and the suggested retail price.
21.14(c) If the manufacturer's list price information contains a single vehicle identification
21.15number followed by various descriptions and suggested retail prices, the registrar shall
21.16select from those listings only the lowest price for determining base value.
21.17(d) If unable to determine the base value because the vehicle is specially constructed,
21.18or for any other reason, the registrar may establish such value upon the cost price to the
21.19purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
21.20or use tax or any local sales or other local tax.
21.21(e) The registrar shall classify every vehicle in its proper base value class as follows:
21.22
FROM
TO
21.23
$
0
$
199.99
21.24
200
399.99
21.25and thereafter a series of classes successively set in brackets having a spread of $200
21.26consisting of such number of classes as will permit classification of all vehicles.
21.27(f) The base value for purposes of this section shall be the middle point between
21.28the extremes of its class.
21.29(g) The registrar shall establish the base value, when new, of every passenger
21.30automobile and hearse registered prior to the effective date of Extra Session Laws 1971,
21.31chapter 31, using list price information published by the manufacturer or any nationally
21.32recognized firm or association compiling such data for the automotive industry. If unable
21.33to ascertain the base value of any registered vehicle in the foregoing manner, the registrar
21.34may use any other available source or method. The registrar shall calculate tax using base
21.35value information available to dealers and deputy registrars at the time the application for
22.1registration is submitted. The tax on all previously registered vehicles shall be computed
22.2upon the base value thus determined taking into account the depreciation provisions of
22.3paragraph (h).
22.4(h) The annual additional tax computed upon the base value as provided herein,
22.5during the first and second years year of vehicle life shall be computed upon 100 percent
22.6of the base value; for the second year, 80 percent of such value; for the third and fourth
22.7years year, 90 70 percent of such value; for the fourth year, 60 percent of such value; for
22.8the fifth and sixth years year, 75 50 percent of such value; for the sixth year, 40 percent
22.9of such value; for the seventh year, 60 35 percent of such value; for the eighth year, 40
22.1030 percent of such value; for the ninth year, 30 20 percent of such value; for the tenth year,
22.11ten percent of such value; for the 11th and each succeeding year, the sum of $25.
22.12In no event shall the annual additional tax be less than $25. The total tax under this
22.13subdivision shall not exceed $189 for the first renewal period and shall not exceed $99
22.14for subsequent renewal periods. The total tax under this subdivision on any vehicle filing
22.15its initial registration in Minnesota in the second year of vehicle life shall not exceed
22.16$189 and shall not exceed $99 for subsequent renewal periods. The total tax under
22.17this subdivision on any vehicle filing its initial registration in Minnesota in the third or
22.18subsequent year of vehicle life shall not exceed $99 and shall not exceed $99 in any
22.19subsequent renewal period The annual additional tax under this paragraph must not exceed
22.20the annual additional tax that was previously paid or due on that vehicle.
22.21(i) As used in this subdivision and section 168.017, the following terms have the
22.22meanings given: "initial registration" means the 12 consecutive months calendar period
22.23from the day of first registration of a vehicle in Minnesota; and "renewal periods" means
22.24the 12 consecutive calendar months periods following the initial registration period.

22.25    Sec. 2. Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:
22.26    Subd. 3. Exceptions. (a) The registrar shall register all vehicles subject to
22.27registration under the monthly series system for a period of 12 consecutive calendar
22.28months, unless:
22.29(1) the application is an original rather than renewal application; or
22.30(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which
22.31case the applicant may apply for initial or renewed registration of a vehicle for a period
22.32of four or more months, the month of expiration to be designated by the applicant at the
22.33time of registration. However, to qualify for this exemption, the applicant must present
22.34the application to the registrar at St. Paul, or at deputy registrar offices as the registrar
22.35may designate.
23.1(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall
23.2not approve registering the vehicle subject to the application for a period of less than three
23.3months, except when the registrar determines that to do otherwise will help to equalize
23.4the registration and renewal work load of the department.
23.5(c) As used in this subdivision, the following terms have the meanings given:
23.6(1) "initial registration" means the 12 consecutive calendar months period from the
23.7day of first registration of a vehicle in Minnesota; and
23.8(2) "renewal periods" means the 12 consecutive calendar months periods following
23.9the initial registration period.

23.10ARTICLE 4
23.11LOCAL SALES TAX

23.12    Section 1. Minnesota Statutes 2006, section 161.04, is amended by adding a
23.13subdivision to read:
23.14    Subd. 5. Highway spending in metropolitan transportation district. In any year
23.15during which taxes authorized in section 297A.992, subdivision 3, are imposed, and
23.16exclusive of the expenditure of these revenues, the percentage of total trunk highway fund
23.17expenditures attributable to projects in the metropolitan transportation area, within the
23.18meaning of section 297A.992, subdivision 1, must exceed two percentage points less than
23.19the average of the previous five years of trunk highway fund metropolitan transportation
23.20area expenditures.
23.21EFFECTIVE DATE.This section is effective July 1, 2007.

23.22    Sec. 2. Minnesota Statutes 2006, section 297A.94, is amended to read:
23.23297A.94 DEPOSIT OF REVENUES.
23.24    (a) Except as provided in this section, the commissioner shall deposit the revenues,
23.25including interest and penalties, derived from the taxes imposed by this chapter in the state
23.26treasury and credit them to the general fund.
23.27    (b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
23.28account in the special revenue fund if:
23.29    (1) the taxes are derived from sales and use of property and services purchased for
23.30the construction and operation of an agricultural resource project; and
23.31    (2) the purchase was made on or after the date on which a conditional commitment
23.32was made for a loan guaranty for the project under section 41A.04, subdivision 3.
24.1The commissioner of finance shall certify to the commissioner the date on which the
24.2project received the conditional commitment. The amount deposited in the loan guaranty
24.3account must be reduced by any refunds and by the costs incurred by the Department of
24.4Revenue to administer and enforce the assessment and collection of the taxes.
24.5    (c) The commissioner shall deposit the revenues, including interest and penalties,
24.6derived from the taxes imposed on sales and purchases included in section 297A.61,
24.7subdivision 3
, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
24.8as follows:
24.9    (1) first to the general obligation special tax bond debt service account in each fiscal
24.10year the amount required by section 16A.661, subdivision 3, paragraph (b); and
24.11    (2) after the requirements of clause (1) have been met, the balance to the general
24.12fund.
24.13    (d) The commissioner shall deposit the revenues, including interest and penalties,
24.14collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
24.15general fund. By July 15 of each year the commissioner shall transfer to the highway user
24.16tax distribution fund an amount equal to the excess fees collected under section 297A.64,
24.17subdivision 5
, for the previous calendar year.
24.18    (e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
24.19for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and
24.20penalties, transmitted to the commissioner under section 297A.65, must be deposited by
24.21the commissioner in the state treasury as follows:
24.22    (1) 50 percent of the receipts must be deposited in the heritage enhancement account
24.23in the game and fish fund, and may be spent only on activities that improve, enhance, or
24.24protect fish and wildlife resources, including conservation, restoration, and enhancement
24.25of land, water, and other natural resources of the state;
24.26    (2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
24.27may be spent only for state parks and trails;
24.28    (3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
24.29may be spent only on metropolitan park and trail grants;
24.30    (4) three percent of the receipts must be deposited in the natural resources fund, and
24.31may be spent only on local trail grants; and
24.32    (5) two percent of the receipts must be deposited in the natural resources fund,
24.33and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
24.34Conservatory, and the Duluth Zoo.
24.35    (f) The revenue dedicated under paragraph (e) may not be used as a substitute
24.36for traditional sources of funding for the purposes specified, but the dedicated revenue
25.1shall supplement traditional sources of funding for those purposes. Land acquired with
25.2money deposited in the game and fish fund under paragraph (e) must be open to public
25.3hunting and fishing during the open season, except that in aquatic management areas or
25.4on lands where angling easements have been acquired, fishing may be prohibited during
25.5certain times of the year and hunting may be prohibited. At least 87 percent of the money
25.6deposited in the game and fish fund for improvement, enhancement, or protection of fish
25.7and wildlife resources under paragraph (e) must be allocated for field operations.
25.8    (g) The revenues, including interest and penalties, collected under section 297A.992
25.9must be deposited by the commissioner as provided for in that section.
25.10EFFECTIVE DATE.This section is effective July 1, 2007.

25.11    Sec. 3. [297A.992] LOCAL TRANSPORTATION SALES AND EXCISE TAXES.
25.12    Subdivision 1. Definitions. For purposes of this section, "metropolitan
25.13transportation area" means the area included within the counties of Anoka, Carver, Dakota,
25.14Hennepin, Ramsey, Scott, and Washington, and "county" means each of those counties, as
25.15well as any county that joins the joint powers board under subdivision 5.
25.16    Subd. 2. Imposition of tax. A transportation sales tax is imposed at a rate of
25.17one-half of one percent on retail sales and uses taxable under chapter 297A, and an excise
25.18tax is imposed on the sale of new motor vehicles at the rate of $20 per vehicle, occurring
25.19within the metropolitan transportation area, effective for sales and uses after September
25.2030, 2007.
25.21    Subd. 3. Joint powers agreement. The counties in the metropolitan transportation
25.22area shall enter into a joint powers agreement to create a joint powers board to exercise the
25.23powers provided in this section.
25.24    Subd. 4. Joint powers board. (a) The joint powers board must consist of one
25.25representative of each county specified in subdivision 1, appointed by its county board,
25.26and one elected city or town official from each county. The city or town representative
25.27must be designated by representatives of statutory and home rule charter cities and towns
25.28located in the county, at a meeting convened by the mayor of the city with the largest
25.29population in the county. The joint powers board has the powers and duties provided in
25.30this section and in section 471.59.
25.31    (b) The decisions of the joint powers board shall be made by means of a weighted
25.32voting system, with a total of 100 percent of voting authority, as follows:
25.33    (1) the representatives of each county and each city or town shall each have a vote
25.34weighted at 2.5 percent; and
26.1    (2) the remaining voting authority shall be distributed among the counties in
26.2proportion to the amount of tax proceeds from the taxes imposed in subdivision 1 that are
26.3derived from sales and uses in that county, and then divided equally between the county
26.4representative and the city or town representative from that county.
26.5    (c) The determination of the distributions under paragraph (b), clause (2), shall
26.6be made as follows. By June 30, 2007, the commissioner of revenue shall estimate the
26.7amount of taxes that have been collected under chapter 297A during the 24-month period
26.8ending March 31, 2007, from each of those counties, plus the amount that would have
26.9been collected in each of those counties if a tax at a rate of $20 per vehicle had been
26.10imposed on sales of new motor vehicles within the county, and shall determine for each
26.11county its relative share of the total amount collected for all counties. The county shares
26.12shall remain in effect for a period of three years, or until an additional county elects to join
26.13the joint powers board, at which time the commissioner of revenue must recompute the
26.14county shares, using the most recently available and verifiable information for a 24-month
26.15period ending three months prior to the recomputation. The joint powers board shall
26.16maximize the availability and use of federal funds in projects funded under this section.
26.17    Subd. 5. Option for contiguous counties. A joint powers agreement must provide
26.18a process and timeline to allow a county that is contiguous to any of the counties listed in
26.19subdivision 1, by resolution of its county board, to impose a tax on the same terms as the
26.20tax in subdivision 2 within its jurisdiction and to join the joint powers board.
26.21    Subd. 6. Metropolitan transportation area fund. A metropolitan transportation
26.22area fund is created in the state treasury. After the deductions allowed in section 297A.99,
26.23subdivision 11, the commissioner of revenue shall deposit in the fund all revenue from
26.24taxes imposed under this section. Money in the fund is appropriated to the commissioner
26.25of finance. The commissioner of finance shall allocate money in the fund as directed by
26.26resolution of the joint powers board under subdivision 7.
26.27    Subd. 7. Use of sales tax revenue. By May 1 of each year, the joint powers
26.28board shall, by resolution, direct the commissioner of finance to allocate revenue in the
26.29metropolitan transportation area fund for the next fiscal year according to the provisions
26.30of the resolution. Revenue must be allocated first to the joint powers board to reimburse
26.31its expenses in carrying out the requirements of this section. Remaining funds must be
26.32allocated:
26.33(1) seventy-five percent for planning, capital, and operating costs of transit. The
26.34joint powers board shall fund, from the transit allocation, studies and environmental work
26.35relating to potential transit in the following corridors:
27.1(i) marked Interstate Highway 94 between the Union Depot Concourse Multimodal
27.2Transit Hub, located in downtown St. Paul south of Kellogg Boulevard and east of
27.3Jackson Street, to the Minnesota-Wisconsin border;
27.4(ii) Rush Line Corridor along marked Interstate Highway 35E/Interstate Highway
27.535 and marked Trunk Highway 61, between the Union Depot Concourse Multimodal
27.6Transit Hub in St. Paul, to Hinckley;
27.7(iii) Red Rock Corridor between Hastings and Minneapolis via the Union Depot
27.8Concourse Multimodal Transit Hub in St. Paul;
27.9(iv) Southwest Transitway Corridor to connect with Hiawatha light rail in downtown
27.10Minneapolis to the vicinity of the Southwest Station Transit Hub in Eden Prairie;
27.11(v) marked Interstate Highway 494 from Maple Grove to a transit station on the
27.12Southwest Transitway and continuing to its intersection with marked Interstate Highway
27.1394;
27.14(vi) marked Interstate Highway 394 or marked Trunk Highway 55, from downtown
27.15Minneapolis to Ridgedale Drive in Minnetonka and on to Wayzata Depot;
27.16    (vii) marked Interstate Highway 35W/35 from downtown Minneapolis to County
27.17Road 50 in Lakeville; and
27.18    (viii) Robert Street Corridor between the Union Depot Concourse Multimodal
27.19Transit Hub in St. Paul and County Road 42 in Rosemount;
27.20(2) twenty percent for construction, maintenance, and improvement of trunk
27.21highways and local roads located within the joint powers counties; and
27.22(3) five percent to:
27.23(i) plan, design, build, maintain, promote, and operate bicycle programs and
27.24pathways including, but not limited to, bicycle racks, bicycle lockers, off-road bicycle
27.25paths, on-street bicycle striping, signage, lighting, and other projects with a primary focus
27.26on bicycle transportation;
27.27(ii) plan, design, build, maintain, promote, and operate pedestrian programs within
27.28the county including, but not limited to, sidewalks, paths, signage, lighting, and pedestrian
27.29crossings with an emphasis on pedestrian transportation;
27.30(iii) plan, design, and provide transportation infrastructure associated with
27.31transit-oriented development; and
27.32(iv) provide the local match for federal transportation grants for projects that
27.33encourage transit use, bicycling, and walking under the federal Transportation
27.34Enhancement, Congestion Mitigation and Air Quality, or Surface Transportation programs.
27.35    Subd. 8. Grant process. (a) The joint powers board shall, by resolution, establish
27.36a grant application and award process, which defines objective criteria for the award of
28.1grants and awards grants only to public entities. Grants must be funded by the proceeds of
28.2the sales tax, or bonds or other obligations issued by the joint powers board.
28.3(b) Grant applications must be submitted on forms prescribed by the joint powers
28.4board. An applicant must provide the following information, in addition to all other
28.5information required by the joint powers board:
28.6(1) the estimated cost of the project and the amount of the grant sought;
28.7(2) possible sources of funding in addition to the grant sought; and
28.8(3) an identification of any federal funds that will be utilized if the grant is awarded.
28.9    Subd. 9. Tax in counties outside metropolitan transportation area.
28.10Notwithstanding sections 297A.99, subdivisions 1, 2, 3, 5, and 13; 477A.016; or any other
28.11law, the board of any county, or the boards of two or more counties outside the metropolitan
28.12transportation area acting under a joint powers agreement may impose a transportation
28.13sales tax at a rate of one-half of one percent on retail sales and uses taxable under chapter
28.14297A occurring within the jurisdiction of the taxing authority subject to approval by the
28.15voters of the county or counties at a general election. The proceeds of the tax must be
28.16dedicated exclusively to transportation projects. A county may not impose a tax under this
28.17subdivision if a city located within the county has imposed a tax under subdivision 10.
28.18    Subd. 10. Tax in cities outside the metropolitan area. Notwithstanding sections
28.19297A.99, subdivisions 1, 2, 3, 5, and 13; 477A.016; or any other law, the city council of
28.20any home rule charter or statutory city, or the city councils of two or more cities acting
28.21under a joint powers agreement may impose a transportation sales tax at a rate of one-half
28.22of one percent on retail sales and uses taxable under chapter 297A occurring within the
28.23jurisdiction of the taxing authority subject to approval by the voters of the county or
28.24counties in which the city or cities are located at a general election. The proceeds of the tax
28.25must be dedicated exclusively to transportation projects. A city may not impose a tax under
28.26this subdivision if the county in which it is located has imposed a tax under subdivision 9.
28.27    Subd. 11. Administration, collection, enforcement. The administration, collection,
28.28and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all
28.29taxes imposed under this section.

28.30ARTICLE 5
28.31COUNTY WHEELAGE TAX

28.32    Section 1. Minnesota Statutes 2006, section 163.051, is amended to read:
28.33163.051 METROPOLITAN COUNTY WHEELAGE TAX.
28.34    Subdivision 1. Tax authorized. The board of commissioners of each metropolitan
28.35county is authorized to levy by resolution a wheelage tax of $5 for the year 1972 and
29.1each subsequent year thereafter by resolution $20 each year on each motor vehicle,
29.2except motorcycles as defined in section 169.01, subdivision 4, which is kept in such
29.3county when not in operation and which is that is domiciled in the county and subject to
29.4annual registration and taxation under chapter 168. The board may provide by resolution
29.5for collection of the wheelage tax by county officials or it may request that the tax be
29.6collected by the state registrar of motor vehicles, and the state registrar of motor vehicles
29.7shall collect such the tax on behalf of the county if requested, as provided in subdivision 2
29.8provided in the board resolution.
29.9    Subd. 2. Collection by registrar of motor vehicles. The wheelage tax levied by
29.10any metropolitan county, if made collectible by the state registrar of motor vehicles, shall
29.11be certified by the county auditor to the registrar not later than August 1 in the year before
29.12the a calendar year or years for which the tax is levied, and the registrar shall collect such
29.13the tax with the motor vehicle taxes registration tax on the each affected vehicles vehicle
29.14for such that year or years. Every An owner and every operator of such a motor vehicle
29.15subject to the wheelage tax shall furnish to the registrar all information requested by the
29.16registrar relating to the wheelage tax. No state motor A vehicle registration tax on any
29.17such motor vehicle for any such year shall may not be received or deemed paid unless the
29.18applicable wheelage tax is paid therewith. The proceeds of the wheelage tax levied by any
29.19metropolitan county, less any amount retained by the registrar to pay costs of collection of
29.20the wheelage tax, shall be paid to the commissioner of finance and deposited in the state
29.21treasury to the credit of the county wheelage tax fund of each metropolitan county.
29.22    Subd. 2a. Tax proceeds deposited; costs of collection; appropriation.
29.23Notwithstanding the provisions of any other law, the state registrar of motor vehicles shall
29.24deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of the
29.25county wheelage tax road and bridge fund of each metropolitan county that levies the
29.26wheelage tax. The amount necessary to pay the costs of collection of said collecting the
29.27tax is appropriated to the registrar from the county wheelage tax road and bridge fund of
29.28each metropolitan county to the state registrar of motor vehicles that levies the tax.
29.29    Subd. 3. Distribution to metropolitan county; appropriation. On or before April
29.301 in 1972 and each subsequent year, the commissioner of finance shall issue a warrant in
29.31favor of the treasurer of each metropolitan county for which the registrar has collected a
29.32wheelage tax in the amount of such tax then on hand in the county wheelage tax fund.
29.33There is hereby appropriated from the county wheelage tax fund each year, to each
29.34metropolitan county entitled to payments authorized by this section, sufficient moneys
29.35to make such payments.
30.1    Subd. 4. Use of tax. The treasurer of each metropolitan county receiving moneys
30.2under subdivision 3 shall deposit such moneys in the county road and bridge fund. The
30.3moneys shall be used for purposes authorized by law which are highway purposes within
30.4the meaning of the Minnesota Constitution, article 14.
30.5    Subd. 5. Effect on road and bridge levy. The county auditor of each metropolitan
30.6county shall reduce the amount of the property taxes levied pursuant to law in 1973 for
30.7collection in 1974, by the board of commissioners of such county for the county road
30.8and bridge fund, by the following amount: Anoka County, $341,750; Carver County,
30.9$86,725; Dakota County, $386,165; Hennepin County, $2,728,425; Ramsey County,
30.10$1,276,815; Scott County, $104,805; Washington County, $227,220, and shall spread only
30.11the balance thereof on the tax rolls for collection in 1972. The county auditor shall also
30.12reduce the amount of such taxes levied pursuant to law in 1972 and any subsequent year,
30.13for collection in the respective ensuing years, by the amount of wheelage taxes received
30.14by the county in the 12 months immediately preceding such levy.
30.15    Subd. 6. Metropolitan county defined. "Metropolitan county" means any of the
30.16counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
30.17    Subd. 7. Offenses; penalties; application of other laws. Any owner or operator
30.18of a motor vehicle who shall willfully give any gives false information relative to the
30.19wheelage tax herein authorized to the registrar of motor vehicles or any metropolitan
30.20county, or who shall willfully fail fails or refuse refuses to furnish any such information,
30.21shall be is guilty of a misdemeanor. Except as otherwise herein provided in this section,
30.22the collection and payment of a wheelage tax and all related matters relating thereto shall
30.23be are subject to all provisions of law laws relating to collection and payment of motor
30.24vehicle taxes so far as applicable.

30.25    Sec. 2. Minnesota Statutes 2006, section 168.011, subdivision 6, is amended to read:
30.26    Subd. 6. Tax. "Tax" means the annual registration tax imposed on vehicles in lieu
30.27of all other taxes, except wheelage taxes which may be imposed by any city or county,
30.28and gross earnings taxes paid by companies. The annual tax is both a property tax and a
30.29highway use tax and shall be on the basis of the calendar year.

30.30    Sec. 3. Minnesota Statutes 2006, section 168.013, subdivision 1, is amended to read:
30.31    Subdivision 1. Imposition. Motor vehicles, except as set forth in section 168.012,
30.32using the public streets or highways in the state, and park trailers taxed under subdivision
30.331j, shall be taxed in lieu of all other taxes thereon, except wheelage taxes, so-called, which
30.34may be imposed by any city or county as provided by law, and except gross earnings
31.1taxes paid by companies subject or made subject thereto, and shall be privileged to
31.2use the public streets and highways, on the basis and at the rate for each calendar year
31.3as hereinafter provided.

31.4ARTICLE 6
31.5MOTOR VEHICLE SALES TAX, MOTOR VEHICLE LEASE SALES TAX

31.6    Section 1. Minnesota Statutes 2006, section 16A.88, is amended to read:
31.716A.88 TRANSIT FUNDS ASSISTANCE FUND.
31.8    Subdivision 1. Transit assistance fund established. A transit assistance fund is
31.9established within the state treasury. The fund receives money distributed under sections
31.10297A.815, subdivision 3, and 297B.09, subdivision 1, and other money as specified by
31.11law. Money in the fund must be allocated to the greater Minnesota transit account under
31.12subdivision 1a and the metropolitan area transit account under subdivision 2 in the manner
31.13specified in sections 297A.815, subdivision 3, and 297B.09, subdivision 1, and must be
31.14used for transit purposes.
31.15    Subd. 1a. Greater Minnesota transit fund account. The greater Minnesota transit
31.16fund account is established within the transit assistance fund in the state treasury. Money
31.17in the fund account is annually appropriated to the commissioner of transportation for
31.18assistance to transit systems outside the metropolitan area under section 174.24. Beginning
31.19in fiscal year 2003, The commissioner may use up to $400,000 each year $408,000 in
31.20fiscal year 2008 and $416,000 in fiscal year 2009 and thereafter for administration of the
31.21transit program. The commissioner shall use the fund account for transit operations as
31.22provided in section 174.24 and related program administration.
31.23    Subd. 2. Metropolitan area transit fund account. The metropolitan area transit
31.24fund account is established within the transit assistance fund in the state treasury. All
31.25money in the fund account is annually appropriated to the Metropolitan Council for the
31.26funding of transit systems within the metropolitan area under sections 473.384, 473.386,
31.27473.387 , 473.388, and 473.405 to 473.449.
31.28    Subd. 3. Metropolitan area transit appropriation account. The metropolitan
31.29area transit appropriation account is established within the general fund. Money in the
31.30account is to be used for the funding of transit systems in the metropolitan area, subject to
31.31legislative appropriation.
31.32EFFECTIVE DATE.This section is effective July 1, 2007.

31.33    Sec. 2. Minnesota Statutes 2006, section 297A.64, subdivision 2, is amended to read:
32.1    Subd. 2. Fee imposed. A fee equal to three five percent of the sales price is imposed
32.2on leases or rentals of vehicles subject to the tax under subdivision 1. The lessor on the
32.3invoice to the customer may designate the fee as "a fee imposed by the State of Minnesota
32.4for the registration of rental cars."
32.5EFFECTIVE DATE.This section is effective July 1, 2007.

32.6    Sec. 3. Minnesota Statutes 2006, section 297A.815, subdivision 1, is amended to read:
32.7    Subdivision 1. Motor vehicle lease price; payment. (a) In the case of a lease of
32.8a motor vehicle as provided in section 297A.61, subdivision 4, paragraph (k), clause
32.9(2), the tax is imposed on the total amount to be paid by the lessee under the lease
32.10agreement, together with the document administration fee or documentary fee under
32.11section 53C.01, subdivision 2. The lessor shall collect the tax in full at the time the lease
32.12is executed or, if the tax is included in the lease and the lease is assigned, the tax is due
32.13from the original lessor at the time the lease is assigned. The total amount to be paid by
32.14the lessee under the lease agreement equals the agreed-upon value of the vehicle less
32.15manufacturer's rebates, the stated residual value of the leased vehicle, and the total value
32.16allowed for a vehicle owned by the lessee taken in trade by the lessor, plus the price of
32.17any taxable goods and services included in the lease and the rent charge as provided by
32.18Code of Federal Regulations, title 12, section 213.4, excluding any rent charge related
32.19to the capitalization of the tax.
32.20    (b) If the total amount paid by the lessee for use of the leased vehicle includes
32.21amounts that are not calculated at the time the lease is executed, the tax is imposed and
32.22must be collected by the lessor at the time the amounts are paid by the lessee. In the case
32.23of a lease which by its terms may be renewed, the sales tax is due and payable on the
32.24total amount to be paid during the initial term of the lease, and then for each subsequent
32.25renewal period on the total amount to be paid during the renewal period.
32.26    (c) If a lease is canceled or rescinded on or before 90 days of its execution or if a
32.27vehicle is returned to the manufacturer under section 325F.665, the lessor may file a claim
32.28for a refund of the total tax paid minus the amount of tax due for the period the vehicle is
32.29used by the lessee.
32.30    (d) If a lessee's obligation to make payments on a lease is canceled more than 90
32.31days after its execution, a credit is allowed against sales tax or motor vehicles sales tax
32.32due on a subsequent lease or purchase of a motor vehicle if that lease or purchase is
32.33consummated within 30 days of the date the prior lease was canceled. The amount of the
32.34credit is equal to (1) the sales tax paid at the inception of the lease, multiplied by (2)
32.35the ratio of the number of full months remaining in the lease at the time of termination
33.1compared to the term of the lease used in calculating sales tax paid at the inception of the
33.2lease. The credit or any part of it cannot be assigned or transferred to another person.

33.3    Sec. 4. Minnesota Statutes 2006, section 297A.815, is amended by adding a
33.4subdivision to read:
33.5    Subd. 4. Reporting of tax proceeds. A lessor must report taxes collected under
33.6this section separately from any other taxes collected and remitted under this chapter or
33.7chapter 297B.

33.8    Sec. 5. Minnesota Statutes 2006, section 297A.94, is amended to read:
33.9297A.94 DEPOSIT OF REVENUES.
33.10(a) Except as provided in this section, the commissioner shall deposit the revenues,
33.11including interest and penalties, derived from the taxes imposed by this chapter in the state
33.12treasury and credit them to the general fund.
33.13(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
33.14account in the special revenue fund if:
33.15(1) the taxes are derived from sales and use of property and services purchased for
33.16the construction and operation of an agricultural resource project; and
33.17(2) the purchase was made on or after the date on which a conditional commitment
33.18was made for a loan guaranty for the project under section 41A.04, subdivision 3.
33.19The commissioner of finance shall certify to the commissioner the date on which the
33.20project received the conditional commitment. The amount deposited in the loan guaranty
33.21account must be reduced by any refunds and by the costs incurred by the Department of
33.22Revenue to administer and enforce the assessment and collection of the taxes.
33.23(c) The commissioner shall deposit the revenues, including interest and penalties,
33.24derived from the taxes imposed on sales and purchases included in section 297A.61,
33.25subdivision 3
, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
33.26as follows:
33.27(1) first to the general obligation special tax bond debt service account in each fiscal
33.28year the amount required by section 16A.661, subdivision 3, paragraph (b); and
33.29(2) after the requirements of clause (1) have been met, the balance to the general
33.30fund.
33.31(d) The commissioner shall deposit the revenues, including interest and penalties,
33.32collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
33.33general fund. By July 15 of each year the commissioner shall transfer to the highway user
34.1tax distribution fund an amount equal to the excess fees collected under section 297A.64,
34.2subdivision 5
, for the previous calendar year.
34.3(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
34.4for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and
34.5penalties, transmitted to the commissioner under section 297A.65, must be deposited by
34.6the commissioner in the state treasury as follows:
34.7(1) 50 percent of the receipts must be deposited in the heritage enhancement account
34.8in the game and fish fund, and may be spent only on activities that improve, enhance, or
34.9protect fish and wildlife resources, including conservation, restoration, and enhancement
34.10of land, water, and other natural resources of the state;
34.11(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
34.12may be spent only for state parks and trails;
34.13(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
34.14may be spent only on metropolitan park and trail grants;
34.15(4) three percent of the receipts must be deposited in the natural resources fund, and
34.16may be spent only on local trail grants; and
34.17(5) two percent of the receipts must be deposited in the natural resources fund,
34.18and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
34.19Conservatory, and the Duluth Zoo.
34.20(f) The revenue dedicated under paragraph (e) may not be used as a substitute
34.21for traditional sources of funding for the purposes specified, but the dedicated revenue
34.22shall supplement traditional sources of funding for those purposes. Land acquired with
34.23money deposited in the game and fish fund under paragraph (e) must be open to public
34.24hunting and fishing during the open season, except that in aquatic management areas or
34.25on lands where angling easements have been acquired, fishing may be prohibited during
34.26certain times of the year and hunting may be prohibited. At least 87 percent of the money
34.27deposited in the game and fish fund for improvement, enhancement, or protection of fish
34.28and wildlife resources under paragraph (e) must be allocated for field operations.
34.29(g) The revenues, including interest and penalties, collected under section 297A.815
34.30must be deposited as follows:
34.31    (1) From July 1, 2007, through June 30, 2008, 31.75 percent must be deposited in
34.32the highway user tax distribution fund, and 32 percent must be deposited in the transit
34.33assistance fund and allocated 24 percent to the metropolitan area transit account, and eight
34.34percent to the greater Minnesota transit account. The remaining money must be deposited
34.35in the general fund.
35.1    (2) From July 1, 2008, through June 30, 2009, 36.75 percent must be deposited in
35.2the highway user tax distribution fund, and 37 percent must be deposited in the transit
35.3assistance fund and allocated 27.75 percent to the metropolitan area transit account,
35.4and 9.25 percent to the greater Minnesota transit account. The remaining money must
35.5be deposited in the general fund.
35.6    (3) From July 1, 2009, through June 30, 2010, 41.75 percent must be deposited in
35.7the highway user tax distribution fund, and 42 percent must be deposited in the transit
35.8assistance fund and allocated 31.5 percent to the metropolitan area transit account, and
35.910.5 percent to the greater Minnesota transit account. The remaining money must be
35.10deposited in the general fund.
35.11    (4) From July 1, 2010, through June 30, 2011, 46.75 percent must be deposited in
35.12the highway user tax distribution fund, and 47 percent must be deposited in the transit
35.13assistance fund and allocated 35.25 percent to the metropolitan area transit account, and
35.1411.75 percent to the greater Minnesota transit account. The remaining money must be
35.15deposited in the general fund.
35.16    (5) On and after July 1, 2011, 50 percent must be deposited in the highway user tax
35.17distribution fund, and 50 percent must be deposited in the transit assistance fund and
35.18allocated 37.5 percent to the metropolitan area transit account, and 12.5 percent to the
35.19greater Minnesota transit account.

35.20    Sec. 6. Minnesota Statutes 2006, section 297B.01, subdivision 8, is amended to read:
35.21    Subd. 8. Purchase price. (a) "Purchase price" means the total consideration valued
35.22in money for a sale, whether paid in money or otherwise. The purchase price excludes the
35.23amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle
35.24is taken in trade as a credit or as part payment on a motor vehicle taxable under this
35.25chapter, the credit or trade-in value allowed by the person selling the motor vehicle shall
35.26be deducted from the total selling price to establish the purchase price of the vehicle
35.27being sold and the trade-in allowance allowed by the seller shall constitute the purchase
35.28price of the motor vehicle accepted as a trade-in. The purchase price in those instances
35.29where the motor vehicle is acquired by gift or by any other transfer for a nominal or no
35.30monetary consideration shall also include the average value of similar motor vehicles,
35.31established by standards and guides as determined by the motor vehicle registrar. The
35.32purchase price in those instances where a motor vehicle is manufactured by a person who
35.33registers it under the laws of this state shall mean the manufactured cost of such motor
35.34vehicle and manufactured cost shall mean the amount expended for materials, labor,
35.35and other properly allocable costs of manufacture, except that in the absence of actual
36.1expenditures for the manufacture of a part or all of the motor vehicle, manufactured costs
36.2shall mean the reasonable value of the completed motor vehicle.
36.3    (b) The term "purchase price" shall not include the portion of the value of a motor
36.4vehicle due solely to modifications necessary to make the motor vehicle disability
36.5accessible.
36.6    (c) The term "purchase price" shall not include the transfer of a motor vehicle by
36.7way of gift between a husband and wife or parent and child, or to a nonprofit organization
36.8as provided under subdivision 7, paragraph (e), nor shall it include the transfer of a motor
36.9vehicle by a guardian to a ward when there is no monetary consideration and the title to
36.10such vehicle was registered in the name of the guardian, as guardian, only because the
36.11ward was a minor.
36.12    (d) The term "purchase price" shall not include the transfer of a motor vehicle as a
36.13gift between a foster parent and foster child. For purposes of this subdivision, a foster
36.14relationship exists, regardless of the age of the child, if (1) a foster parent's home is or was
36.15licensed as a foster family home under Minnesota Rules, parts 9545.0010 to 9545.0260,
36.16and (2) the county verifies that the child was a state ward or in permanent foster care.
36.17    (e) There shall not be included in "purchase price" the amount of any tax imposed by
36.18the United States upon or with respect to retail sales whether imposed upon the retailer or
36.19the consumer.
36.20    (f) The document administration fee or documentary fee under section 53C.01,
36.21subdivision 2, must be included in the purchase price.

36.22    Sec. 7. Minnesota Statutes 2006, section 297B.09, subdivision 1, is amended to read:
36.23    Subdivision 1. Deposit of revenues. (a) Money collected and received under this
36.24chapter must be deposited as provided in this subdivision.
36.25(b) From July 1, 2002, to June 30, 2003, 32 percent of the money collected and
36.26received must be deposited in the highway user tax distribution fund, 20.5 percent must be
36.27deposited in the metropolitan area transit fund under section 16A.88, and 1.25 percent
36.28must be deposited in the greater Minnesota transit fund under section 16A.88. The
36.29remaining money must be deposited in the general fund.
36.30(c) From July 1, 2003, to June 30, 2007, 30 percent of the money collected and
36.31received must be deposited in the highway user tax distribution fund, 21.5 percent must be
36.32deposited in the metropolitan area transit fund under section 16A.88, 1.43 percent must be
36.33deposited in the greater Minnesota transit fund under section 16A.88, 0.65 percent must
36.34be deposited in the county state-aid highway fund, and 0.17 percent must be deposited
37.1in the municipal state-aid street fund. The remaining money must be deposited in the
37.2general fund.
37.3(d) On and after From July 1, 2007, 32 through June 30, 2008, 38.25 percent of the
37.4money collected and received must be deposited in the highway user tax distribution
37.5fund, 20.5 23 percent must be deposited in the metropolitan area transit fund account
37.6under section 16A.88, and 1.25 2.5 percent must be deposited in the greater Minnesota
37.7transit fund account under section 16A.88. The remaining money must be deposited
37.8in the general fund.
37.9(c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected
37.10and received must be deposited in the highway user tax distribution fund, 26.5 percent
37.11must be deposited in the metropolitan area transit account under section 16A.88, three
37.12percent must be deposited in the greater Minnesota transit account under section 16A.88,
37.13and the remaining money must be deposited in the general fund.
37.14(d) From July 1, 2009, through June 30, 2010, 50.25 percent of the money collected
37.15and received must be deposited in the highway user tax distribution fund, 30 percent must
37.16be deposited in the metropolitan area transit account under section 16A.88, 3.5 percent
37.17must be deposited in the greater Minnesota transit account under section 16A.88, and the
37.18remaining money must be deposited in the general fund.
37.19(e) From July 1, 2010, through June 30, 2011, 56.25 percent of the money collected
37.20and received must be deposited in the highway user tax distribution fund, 33.75 percent
37.21must be deposited in the metropolitan area transit account under section 16A.88, 3.75
37.22percent must be deposited in the greater Minnesota transit account under section 16A.88,
37.23and the remaining money must be deposited in the general fund.
37.24(f) On and after July 1, 2011, 60 percent of the money collected and received must
37.25be deposited in the highway user tax distribution fund, 36 percent must be deposited in
37.26the metropolitan area transit account under section 16A.88, and four percent must be
37.27deposited in the greater Minnesota transit account under section 16A.88.
37.28EFFECTIVE DATE.This section is effective July 1, 2007.

37.29    Sec. 8. Minnesota Statutes 2006, section 473.388, subdivision 4, is amended to read:
37.30    Subd. 4. Financial assistance. (a) The council must grant the requested financial
37.31assistance if it determines that the proposed service is intended to replace the service to
37.32the applying city or town or combination thereof by the council and that the proposed
37.33service will meet the needs of the applicant at least as efficiently and effectively as the
37.34existing service.
38.1    (b) The amount of assistance which the council must provide to a system under this
38.2section may not be less than the sum of the amounts determined for each municipality
38.3comprising the system as follows:
38.4    (1) the transit operating assistance grants received under this subdivision by the
38.5municipality in calendar year 2001 or the tax revenues for transit services levied by the
38.6municipality for taxes payable in 2001, including that portion of the levy derived from
38.7the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of
38.8the municipality's aid under section 273.1398, subdivision 2, attributable to the transit
38.9levy; times
38.10    (2) the ratio of (i) the appropriation from the transit fund to the council for nondebt
38.11transit operations an amount equal to 3.623 percent of the state revenues generated from
38.12the taxes imposed under section 297A.815 and chapter 297B for the current fiscal year to
38.13(ii) the total levy certified by the council under section 473.446 and the opt-out transit
38.14operating assistance grants received under this subdivision in calendar year 2001 or the
38.15tax revenues for transit services levied by all replacement service municipalities under
38.16this section for taxes payable in 2001, including that portion of the levy derived from
38.17the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of
38.18homestead and agricultural credit aid under section 273.1398, subdivision 2, attributable
38.19to nondebt transit levies, times
38.20    (3) the ratio of (i) the municipality's total taxable market value for taxes payable in
38.21the most recent year for which data is available 2007 divided by the municipality's total
38.22taxable market value for taxes payable in 2001, to (ii) the total taxable market value of
38.23all property in the metropolitan area located in replacement service municipalities for
38.24taxes payable in the most recent year for which data is available 2007 divided by the
38.25total taxable market value of all property in the metropolitan area located in replacement
38.26service municipalities for taxes payable in 2001.
38.27    (c) The council shall pay the amount to be provided to the recipient from the funds
38.28the council would otherwise use to fund its transit operations receives in the metropolitan
38.29area transit account under section 16A.88.

38.30    Sec. 9. REPEALER.
38.31Minnesota Statutes 2006, section 174.32, is repealed.

38.32ARTICLE 7
38.33COUNTY STATE-AID FUND DISTRIBUTION

38.34    Section 1. Minnesota Statutes 2006, section 162.07, subdivision 1, is amended to read:
39.1    Subdivision 1. Formula Apportionment sum and excess sum. After deducting for
39.2administrative costs and for the disaster account and research account and state park roads
39.3as heretofore provided, the remainder of (a) The total sum provided for in section 162.06,
39.4subdivision 1
, shall be is identified as the apportionment sum and the excess sum. shall be
39.5apportioned by the commissioner to the several counties on the basis of the needs of the
39.6counties as determined in accordance with the following formula:
39.7    (a) An amount equal to ten percent of the apportionment sum shall be apportioned
39.8equally among the 87 counties.
39.9    (b) An amount equal to ten percent of the apportionment sum shall be apportioned
39.10among the several counties so that each county shall receive of such amount the
39.11percentage that its motor vehicle registration for the calendar year preceding the one last
39.12past, determined by residence of registrants, bears to the total statewide motor vehicle
39.13registration.
39.14    (c) An amount equal to 30 percent of the apportionment sum shall be apportioned
39.15among the several counties so that each county shall receive of such amount the percentage
39.16that its total lane-miles of approved county state-aid highways bears to the total lane-miles
39.17of approved statewide county state-aid highways. In 1997 and subsequent years no county
39.18may receive, as a result of an apportionment under this clause based on lane-miles rather
39.19than miles of approved county state-aid highways, an apportionment that is less than its
39.20apportionment in 1996.
39.21    (d) An amount equal to 50 percent of the apportionment sum shall be apportioned
39.22among the several counties so that each county shall receive of such amount the percentage
39.23that its money needs bears to the sum of the money needs of all of the individual counties;
39.24provided, that the percentage of such amount that each county is to receive shall be
39.25adjusted so that each county shall receive in 1958 a total apportionment at least ten
39.26percent greater than its total 1956 apportionments from the state road and bridge fund;
39.27and provided further that those counties whose money needs are thus adjusted shall
39.28never receive a percentage of the apportionment sum less than the percentage that such
39.29county received in 1958.
39.30    (b) The excess sum is the sum of:
39.31    (1) revenue attributed to that portion of the gasoline excise tax rate in excess of 20
39.32cents per gallon, and to that portion of the excise tax rate for E85, M85, and special fuels
39.33in excess of the energy equivalent of a gasoline tax rate of 20 cents per gallon;
39.34    (2) revenue attributed to a change in the passenger vehicle registration tax under
39.35section 168.013, imposed on or after July 1, 2007, that exceeds the amount collected in
39.36fiscal year 2007 multiplied by the annual average United States Consumer Price Index
40.1for all urban consumers, United States city average, as determined by the United States
40.2Department of Labor for the previous year, divided by the annual average for calendar
40.3year 2006; and
40.4    (3) revenue to the county state-aid highway fund attributable to the motor vehicle
40.5sales tax in excess of fiscal year 2007 revenue.
40.6    (c) The apportionment sum is calculated by subtracting the excess sum from the
40.7remainder of the total sum.

40.8    Sec. 2. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
40.9to read:
40.10    Subd. 1a. Apportionment sum. (a) The commissioner shall reduce the
40.11apportionment sum by the deductions for administrative costs, disaster account, research
40.12account, and state park road account, and apportion the remainder among the several
40.13counties on the basis of the needs of the counties as provided in paragraphs (b) to (e).
40.14    (b) An amount equal to ten percent shall be apportioned equally among the 87
40.15counties.
40.16    (c) An amount equal to ten percent shall be apportioned among the several counties
40.17so that each county shall receive of such amount the percentage that its motor vehicle
40.18registration for the calendar year preceding the one last past, determined by residence of
40.19registrants, bears to the total statewide motor vehicle registration.
40.20    (d) An amount equal to 30 percent shall be apportioned among the several counties
40.21so that each county shall receive of such amount the percentage that its total lane-miles of
40.22approved county state-aid highways bears to the total lane-miles of approved statewide
40.23county state-aid highways. In 1997 and subsequent years no county may receive, as a result
40.24of an apportionment under this clause based on lane-miles rather than miles of approved
40.25county state-aid highways, an apportionment that is less than its apportionment in 1996.
40.26    (e) An amount equal to 50 percent shall be apportioned among the several counties
40.27so that each county shall receive of such amount the percentage that its money needs
40.28bears to the sum of the money needs of all of the individual counties provided, that the
40.29percentage of the amount that each county is to receive shall be adjusted so that each
40.30county shall receive in 1958 a total apportionment at least ten percent greater than its total
40.311956 apportionments from the state road and bridge fund; and provided further that those
40.32counties whose money needs are thus adjusted shall never receive a percentage of the
40.33apportionment sum less than the percentage that the county received in 1958.

41.1    Sec. 3. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
41.2to read:
41.3    Subd. 1b. Excess sum. (a) The commissioner shall reduce the excess sum by the
41.4deductions for administrative costs, disaster account, research account, and state park road
41.5account, and apportion the remainder among the several counties on the basis of the needs
41.6of the counties as provided in paragraphs (b) and (c).
41.7    (b) An amount equal to 40 percent must be apportioned among the several counties
41.8so that each county receives of that amount the percentage that its motor vehicle
41.9registration for the calendar year preceding the one last past, determined by residence of
41.10registrants, bears to the total statewide motor vehicle registration.
41.11    (c) An amount equal to 60 percent must be apportioned among the several counties
41.12so that each county receives of that amount the percentage that its money needs bears to
41.13the sum of the money needs of all of the individual counties.

41.14ARTICLE 8
41.15DRIVER AND VEHICLE SERVICES FEES

41.16    Section 1. Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:
41.17    Subd. 3. Exceptions. (a) The registrar shall register all vehicles subject to
41.18registration under the monthly series system for a period of 12 consecutive calendar
41.19months, unless:
41.20(1) the application is an original rather than renewal application; or
41.21(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which
41.22case the applicant may apply for initial or renewed registration of a vehicle for a period
41.23of four or more months, the month of expiration to be designated by the applicant at the
41.24time of registration. However, to qualify for this exemption, the applicant must pay a $10
41.25administrative fee and present the application to the registrar at St. Paul, or at a designated
41.26deputy registrar offices as the registrar may designate. office. At the end of the initial
41.27registration period, the applicant may only renew the registration on the vehicle for the
41.28remainder of the period prescribed under subdivision 1 had the applicant not utilized the
41.29exception in this subdivision. Upon the renewal of registration, the applicant shall pay
41.301/12 of the annual tax for each calendar month remaining in the registration period in
41.31addition to a $10 administrative fee. Nothing in this subdivision prohibits the applicant
41.32from purchasing registration for an additional full registration period in conjunction with
41.33the purchase of the remainder portion.
41.34(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall
41.35not approve registering the vehicle subject to the application for a period of less than three
42.1months, except when the registrar determines that to do otherwise will help to equalize
42.2the registration and renewal work load of the department.
42.3(c) The administrative fee collected under paragraph (a) must be deposited in the
42.4vehicle services operating account in the special revenue fund as specified in section
42.5299A.705.

42.6    Sec. 2. Minnesota Statutes 2006, section 168.12, subdivision 5, is amended to read:
42.7    Subd. 5. Additional fee. (a) In addition to any fee otherwise authorized or any tax
42.8otherwise imposed upon any vehicle, the payment of which is required as a condition to
42.9the issuance of any plate or plates, the commissioner shall impose the fee specified in
42.10paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate
42.11or plates, except for plates issued to disabled veterans as defined in section 168.031 and
42.12plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17,
42.13for passenger automobiles. The commissioner shall issue graphic design plates only
42.14for vehicles registered pursuant to section 168.017 and recreational vehicles registered
42.15pursuant to section 168.013, subdivision 1g.
42.16(b) Unless otherwise specified or exempted by statute, the following plate and
42.17validation sticker fees apply for the original, duplicate, or replacement issuance of a
42.18plate in a plate year:
42.19
Sequential Regular Double Plate
$
4.25
42.20
Sequential Special Plate-Double
$
7.00
42.21
Sequential Regular Single Plate
$
3.00
42.22
Sequential Special Plate-Single
$
5.50
42.23
Utility Trailer Self-Adhesive Plate
$
2.50
42.24
Nonsequential Double Plate
$
14.00
42.25
Nonsequential Single Plate
$
10.00
42.26
Duplicate Sticker
$
1.00
42.27
License Plate
Single
Double
42.28
Regular and Disability
$
4.50
$
6.00
42.29
Special
$
8.50
$
10.00
42.30
Personalized (Replacement)
$
10.00
$
14.00
42.31
Collector Category
$
13.50
$
15.00
42.32
Emergency Vehicle Display
$
3.00
$
6.00
42.33
Utility Trailer Self-Adhesive
$
2.50
42.34
Stickers
42.35
Duplicate year
$
1.00
$
1.00
42.36
42.37
International Fuel Tax
Agreement
$
2.50
43.1(c) For vehicles that require two of the categories above, the registrar shall only
43.2charge the higher of the two fees and not a combined total.

43.3    Sec. 3. Minnesota Statutes 2006, section 168A.29, subdivision 1, is amended to read:
43.4    Subdivision 1. Amounts. (a) The department must be paid the following fees:
43.5(1) for filing an application for and the issuance of an original certificate of title, the
43.6sum of $5.50 $6.25 of which $2.50 $3.25 must be paid into the vehicle services operating
43.7account of the special revenue fund under section 299A.705;
43.8(2) for each security interest when first noted upon a certificate of title, including the
43.9concurrent notation of any assignment thereof and its subsequent release or satisfaction,
43.10the sum of $2, except that no fee is due for a security interest filed by a public authority
43.11under section 168A.05, subdivision 8;
43.12(3) for the transfer of the interest of an owner and the issuance of a new certificate of
43.13title, the sum of $5.50 of which $2.50 must be paid into the vehicle services operating
43.14account of the special revenue fund under section 299A.705;
43.15(4) for each assignment of a security interest when first noted on a certificate of title,
43.16unless noted concurrently with the security interest, the sum of $1;
43.17(5) for issuing a duplicate certificate of title, the sum of $6.50 $7.25 of which $2.50
43.18$3.25 must be paid into the vehicle services operating account of the special revenue fund
43.19under section 299A.705.
43.20(b) After June 30, 1994, in addition to each of the fees required under paragraph (a),
43.21clauses (1) and (3), the department must be paid $3.50. The additional $3.50 fee collected
43.22under this paragraph must be deposited in the special revenue fund and credited to the
43.23public safety motor vehicle account established in section 299A.70.

43.24    Sec. 4. Minnesota Statutes 2006, section 171.02, subdivision 3, is amended to read:
43.25    Subd. 3. Motorized bicycle. (a) A motorized bicycle may not be operated on any
43.26public roadway by any person who does not possess a valid driver's license, unless the
43.27person has obtained a motorized bicycle operator's permit or motorized bicycle instruction
43.28permit from the commissioner of public safety. The operator's permit may be issued to
43.29any person who has attained the age of 15 years and who has passed the examination
43.30prescribed by the commissioner. The instruction permit may be issued to any person who
43.31has attained the age of 15 years and who has successfully completed an approved safety
43.32course and passed the written portion of the examination prescribed by the commissioner.
43.33(b) This course must consist of, but is not limited to, a basic understanding of:
43.34(1) motorized bicycles and their limitations;
44.1(2) motorized bicycle laws and rules;
44.2(3) safe operating practices and basic operating techniques;
44.3(4) helmets and protective clothing;
44.4(5) motorized bicycle traffic strategies; and
44.5(6) effects of alcohol and drugs on motorized bicycle operators.
44.6(c) The commissioner may adopt rules prescribing the content of the safety course,
44.7examination, and the information to be contained on the permits. A person operating a
44.8motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed
44.9by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel
44.10instruction permit.
44.11(d) The fees for motorized bicycle operator's permits are as follows:
44.12
(1)
Examination and operator's permit, valid for one year
$ 66.75
44.13
(2)
Duplicate
$ 33.75
44.14
(3)
Renewal permit before age 21 and valid until age 21
$ 99.75
44.15
(4)
Renewal permit age 21 or older and valid for four years
$1515.75
44.16
(5)
Duplicate of any renewal permit
$ 4.505.25
44.17
44.18
(6)
Written examination and instruction permit, valid for 30
days
$ 66.75

44.19    Sec. 5. Minnesota Statutes 2006, section 171.06, subdivision 2, is amended to read:
44.20    Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are
44.21as follows:
44.22
44.23
Classified Driver's
License
D-$21.50
C-$25.50
B-$32.50
A-$40.50
44.24
Classified Under -21 D.L.
D-$21.50
C-$25.50
B-$32.50
A-$20.50
44.25
44.26
Classified Driver's
License
D-$22.25
C-$26.25
B-$33.25
A-$41.25
44.27
Classified Under-21 D.L.
D-$22.25
C-$26.25
B-$33.25
A-$21.25
44.28
44.29
Instruction Permit
$9.50
$10.25
44.30
44.31
Provisional License
$12.50
$13.25
44.32
44.33
44.34
Duplicate License or
duplicate identification
card
$11.00
$11.75
45.1
45.2
45.3
45.4
45.5
45.6
45.7
45.8
Minnesota identification
card or Under-21
Minnesota identification
card, other than duplicate,
except as otherwise
provided in section
171.07, subdivisions 3
and 3a
$15.50
$16.25
45.9(b) Notwithstanding paragraph (a), an individual who holds a provisional license and
45.10has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
45.11169A.35 , or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
45.12violations, and (3) convictions for moving violations that are not crash related, shall have a
45.13$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
45.14has the meaning given it in section 171.04, subdivision 1.
45.15(c) In addition to the driver's license fee required under paragraph (a), the
45.16commissioner shall collect an additional $4 processing fee from each new applicant
45.17or individual renewing a license with a school bus endorsement to cover the costs for
45.18processing an applicant's initial and biennial physical examination certificate. The
45.19department shall not charge these applicants any other fee to receive or renew the
45.20endorsement.

45.21    Sec. 6. Minnesota Statutes 2006, section 171.07, subdivision 3a, is amended to read:
45.22    Subd. 3a. Identification cards for seniors. A Minnesota identification card issued
45.23to an applicant 65 years of age or over shall be of a distinguishing color and plainly
45.24marked "senior." The fee for the card issued to an applicant 65 years of age or over shall
45.25be one-half the required fee for a class D driver's license rounded down to the nearest
45.26quarter dollar. A Minnesota identification card or a Minnesota driver's license issued to a
45.27person 65 years of age or over shall be valid identification for the purpose of qualifying
45.28for reduced rates, free licenses or services provided by any board, commission, agency or
45.29institution that is wholly or partially funded by state appropriations.

45.30    Sec. 7. Minnesota Statutes 2006, section 171.07, subdivision 11, is amended to read:
45.31    Subd. 11. Standby or temporary custodian. (a) Upon the written request of the
45.32applicant and upon payment of an additional fee of $3.50 $4.25, the department shall issue
45.33a driver's license or Minnesota identification card bearing a symbol or other appropriate
45.34identifier indicating that the license holder has appointed an individual to serve as a
45.35standby or temporary custodian under chapter 257B.
46.1(b) The request must be accompanied by a copy of the designation executed under
46.2section 257B.04.
46.3(c) The department shall maintain a computerized records system of all individuals
46.4listed as standby or temporary custodians by driver's license and identification card
46.5applicants. This data must be released to appropriate law enforcement agencies under
46.6section 13.69. Upon a parent's request and payment of a fee of $3.50 $4.25, the
46.7department shall revise its list of standby or temporary custodians to reflect a change
46.8in the appointment.
46.9(d) At the request of the license or cardholder, the department shall cancel the
46.10standby or temporary custodian indication without additional charge. However, this
46.11paragraph does not prohibit a fee that may be applicable for a duplicate or replacement
46.12license or card, renewal of a license, or other service applicable to a driver's license or
46.13identification card.
46.14(e) Notwithstanding sections 13.08, subdivision 1, and 13.69, the department
46.15and department employees are conclusively presumed to be acting in good faith when
46.16employees rely on statements made, in person or by telephone, by persons purporting to be
46.17law enforcement and subsequently release information described in paragraph (b). When
46.18acting in good faith, the department and department personnel are immune from civil
46.19liability and not subject to suit for damages resulting from the release of this information.
46.20(f) The department and its employees:
46.21(1) have no duty to inquire or otherwise determine whether a designation submitted
46.22under this subdivision is legally valid and enforceable; and
46.23(2) are immune from all civil liability and not subject to suit for damages resulting
46.24from a claim that the designation was not legally valid and enforceable.
46.25(g) Of the fees received by the department under this subdivision:
46.26(1) Up to $61,000 received must be deposited in the general fund.
46.27(2) All other fees must be deposited in the driver services operating account in the
46.28special revenue fund specified in section 299A.705.

46.29    Sec. 8. Minnesota Statutes 2006, section 171.20, subdivision 4, is amended to read:
46.30    Subd. 4. Reinstatement fee. (a) Before the license is reinstated, (1) an individual
46.31whose driver's license has been suspended under section 171.16, subdivisions 2 and 3;
46.32171.175; 171.18 ; or 171.182, or who has been disqualified from holding a commercial
46.33driver's license under section 171.165, and (2) an individual whose driver's license has
46.34been suspended under section 171.186 and who is not exempt from such a fee, must
46.35pay a fee of $20.
47.1(b) Before the license is reinstated, an individual whose license has been suspended
47.2under sections 169.791 to 169.798 must pay a $20 reinstatement fee.
47.3(c) When fees are collected by a licensing agent appointed under section 171.061, a
47.4handling charge is imposed in the amount specified under section 171.061, subdivision 4.
47.5The reinstatement fee and surcharge must be deposited in an approved state depository as
47.6directed under section 171.061, subdivision 4.
47.7(d) Reinstatement fees collected under paragraph (a) for suspensions under sections
47.8171.16, subdivision 3 , and 171.18, subdivision 1, clause (10), must be deposited in the
47.9special revenue fund and are appropriated to the Peace Officer Standards and Training
47.10Board for peace officer training reimbursement to local units of government.
47.11(e) A suspension may be rescinded without fee for good cause.

47.12    Sec. 9. Minnesota Statutes 2006, section 299D.09, is amended to read:
47.13299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
47.14Fees charged for escort services provided by the State Patrol are annually
47.15appropriated to the commissioner of public safety to administer and provide these services.
47.16The fees charged for services provided by the State Patrol with a vehicle are $73.60
47.17an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and thereafter. The fees
47.18charged for services provided without a vehicle are $54.00 an hour in fiscal year 2008 and
47.19$56.16 an hour in fiscal year 2009 and thereafter.
47.20The fees charged for State Patrol flight services are $140 an hour for a fixed wing
47.21aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air.

47.22ARTICLE 9
47.23TRUNK HIGHWAY BONDING

47.24    Section 1. [296A.083] ANNUAL DEBT SERVICE SURCHARGE.
47.25(a) On April 1, 2009, and each April 1 thereafter, the commissioner of finance
47.26shall report to the commissioner of revenue:
47.27(1) the amount of debt service forecast to be payable in the next fiscal year
47.28attributable to the trunk highway bonds authorized in sections 2 to 4; and
47.29(2) the balance in the trunk highway bond proceeds account forecast to be available
47.30at the close of the current fiscal year.
47.31(b) The commissioner of revenue shall compute and publish a surcharge for each
47.32fuel tax provided for in sections 296A.07, subdivision 3, and 296A.08, subdivision 2. The
47.33surcharge must be calculated to raise an amount of money which, when added to the
47.34balance in the trunk highway bond proceeds account, covers the debt service forecast to be
48.1payable in the next fiscal year. The new surcharge must be rounded to the nearest 0.1 cent
48.2and is effective on the next July 1 to June 30.

48.3    Sec. 2. TRANSPORTATION APPROPRIATIONS.
48.4$200,000,000 is appropriated from the bond proceeds account in the trunk highway
48.5fund to the commissioner of transportation in each of fiscal years 2008 through 2017 for
48.6trunk highway improvements. No more than $30,000,000 of each year's appropriation
48.7may be used by the commissioner for program delivery.
48.8Of this amount, in 2008:
48.9(1) $4,299,000 is for predesign, design, construction, and restoration of historic
48.10roadside properties on the Great River Road. The commissioner shall consult with the
48.11Minnesota Mississippi River Parkway Commission to determine project priorities;
48.12    (2) $20,673,000 is to the commissioner of transportation to design, construct, furnish,
48.13and equip a new Department of Transportation district headquarters facility in Mankato;
48.14    (3) $12,715,000 is appropriated to the commissioner of administration to repair and
48.15renovate the exterior of the Department of Transportation Building at 395 John Ireland
48.16Boulevard in St. Paul; and
48.17    (4) $40,000,000 is for construction of interchanges involving a trunk highway,
48.18where the interchange will promote economic development, increase employment, relieve
48.19growing traffic congestion, and promote traffic safety.

48.20    Sec. 3. FINANCE APPROPRIATION.
48.21$200,000 is appropriated from the bond proceeds account in the trunk highway
48.22fund to the commissioner of finance in each of fiscal years 2008 through 2017 for bond
48.23sale expenses under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50,
48.24subdivision 4.

48.25    Sec. 4. BOND SALE AUTHORIZATION.
48.26To provide the money appropriated in this article from the bond proceeds account
48.27in the trunk highway fund, the commissioner of finance shall sell and issue bonds of the
48.28state in an amount up to $2,002,000,000 in the manner, upon the terms, and with the
48.29effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
48.30Constitution, article XIV, section 11, at the times and in the amounts requested by the
48.31commissioner of transportation. The proceeds of the bonds, except accrued interest and
48.32any premium received from the sale of the bonds, must be deposited in the bond proceeds
48.33account in the trunk highway fund.

49.1    Sec. 5. PRIORITY FOR PROJECTS WITH FEDERAL MATCH.
49.2    In each year of this funding authorization, the commissioner must give priority to
49.3trunk highway projects with a federal match, and must maximize the availability and
49.4use of federal funds.

49.5ARTICLE 10
49.6TRANSPORTATION STATUTORY CHANGES

49.7    Section 1. Minnesota Statutes 2006, section 53C.01, subdivision 2, is amended to read:
49.8    Subd. 2. Cash sale price. "Cash sale price" means the price at which the seller
49.9would in good faith sell to the buyer, and the buyer would in good faith buy from the seller,
49.10the motor vehicle which is the subject matter of the retail installment contract, if such sale
49.11were a sale for cash, instead of a retail installment sale. The cash sale price may include
49.12any taxes, charges for delivery, servicing, repairing, or improving the motor vehicle,
49.13including accessories and their installation, and any other charges agreed upon between
49.14the parties. The cash price may not include a documentary fee or document administration
49.15fee in excess of $50 $75 for services actually rendered to, for, or on behalf of, the retail
49.16buyer in preparing, handling, and processing documents relating to the motor vehicle and
49.17the closing of the retail sale. "Documentary fee" and "document administration fee" do
49.18not include an optional electronic transfer fee as defined under subdivision 14.

49.19    Sec. 2. Minnesota Statutes 2006, section 161.081, is amended to read:
49.20161.081 HIGHWAY USER TAX, DISTRIBUTION, INVESTMENT.
49.21    Subdivision 1. Distribution of five percent. (a) Pursuant to article 14, section 5, of
49.22the Constitution, five percent of the net highway user tax distribution fund is set aside, and
49.23apportioned to the county state-aid highway fund.
49.24(b) That apportionment is further distributed as follows:
49.25(1) 30.5 percent to the town road account created in section 162.081;
49.26(2) 16 percent to the town bridge account, which is created in the state treasury; and
49.27(3) 5.5 percent to the municipal turnback account, which is created in the state
49.28treasury for restoration of trunk highways that have reverted or that will revert to cities;
49.29(4) 33.5 percent to the county turnback account, which is created in the state treasury
49.30for restoration of trunk highways that have reverted or will revert to counties; and
49.31(5) 53.5 14.5 percent to the flexible highway account created in subdivision 3.
50.1 For purposes of this subdivision, "restoration" means the level of effort required to improve
50.2the route that will be turned back to an acceptable condition as determined by agreement
50.3made between the commissioner and the county or city before the route is turned back.
50.4    Subd. 2. Investment. Upon the request of the commissioner, money in the highway
50.5user tax distribution fund shall be invested by the State Board of Investment in those
50.6securities authorized for that purpose in section 11A.21. All interest and profits from the
50.7investments must be credited to the highway user tax distribution fund. The commissioner
50.8of finance shall be the custodian of all securities purchased under this section.
50.9    Subd. 3. Flexible highway account; turnback accounts. (a) The flexible highway
50.10account is created in the state treasury. Money in the account may must be used either
50.11for the restoration of former trunk highways that have reverted to counties or to statutory
50.12or home rule charter cities or for regular trunk highway purposes safety improvements
50.13on trunk highways, county highways, municipal highways or streets, or for routes of
50.14regional significance.
50.15(b) For purposes of this subdivision, "restoration" means the level of effort required
50.16to improve the route that will be turned back to an acceptable condition as determined
50.17by agreement made between the commissioner and the county or city before the route
50.18is turned back.
50.19(c) The commissioner shall review the need for funds to restore highways that have
50.20been or will be turned back and the need for funds for the trunk highway system. The
50.21commissioner shall determine, on a biennial basis, the percentage of this flexible account
50.22to be used for county turnbacks, for municipal turnbacks, and for regular trunk highway
50.23projects safety improvements on trunk highways, county highways, municipal highways
50.24or streets, and for routes of regional significance. The commissioner shall make this
50.25determination only after meeting and holding discussions with committees selected by the
50.26statewide associations of both county commissioners and municipal officials.
50.27(d) Money that will be used for the restoration of trunk highways that have reverted
50.28or that will revert to cities must be deposited in the municipal turnback account, which is
50.29created in the state treasury.
50.30(e) Money that will be used for the restoration of trunk highways that have reverted
50.31or that will revert to counties must be deposited in the county turnback account, which is
50.32created in the state treasury.
50.33(c) Money that will be used for safety improvements must be deposited in the
50.34highway safety improvement account, which is created in the state treasury to be used on
50.35the trunk highway system or as grants to statutory or home rule charter cities, towns, and
50.36counties to assist in paying the costs of constructing or reconstructing trunk highways, city
51.1streets, county highways, or town roads to reduce crashes, deaths, injuries, and property
51.2damage.
51.3(f) (d) Money that will be used for routes of regional significance must be deposited
51.4in the routes of regional significance account, which is created in the state treasury, and
51.5used as grants to statutory or home rule charter cities, towns, and counties to assist in
51.6paying the costs of constructing or reconstructing city streets, county highways, or town
51.7roads with statewide or regional significance that have not been fully funded through
51.8other state, federal, or local funding sources.
51.9(e) As part of each biennial budget submission to the legislature, the commissioner
51.10shall describe how the money in the flexible highway account will be apportioned among
51.11the county turnback account, the municipal turnback account, and the trunk highway fund
51.12between the highway safety improvement account and the routes of regional significance
51.13account.
51.14(g) Money apportioned from the flexible highway account to the trunk highway fund
51.15must be used for state road construction and engineering costs.
51.16EFFECTIVE DATE. Paragraph (e) is effective January 1, 2009, and the remainder
51.17of this section is effective July 1, 2009.

51.18    Sec. 3. Minnesota Statutes 2006, section 168.1255, is amended by adding a subdivision
51.19to read:
51.20    Subd. 6. World War II memorial donation matching account. Money remaining
51.21in the World War II memorial donation matching account after the state share of the
51.22construction costs of the World War II memorial has been paid in full is appropriated to the
51.23commissioner of veterans affairs for services and programs for veterans and their families.

51.24    Sec. 4. Minnesota Statutes 2006, section 171.29, subdivision 2, is amended to read:
51.25    Subd. 2. Reinstatement fees and surcharges allocated and appropriated. (a)
51.26An individual whose driver's license has been revoked as provided in subdivision 1,
51.27except under section 169A.52, 169A.54, or 609.21, must pay a $30 fee before the driver's
51.28license is reinstated.
51.29    (b) A person whose driver's license has been revoked as provided in subdivision
51.301 under section 169A.52, 169A.54, or 609.21, must pay a $250 fee plus a $40 $430
51.31surcharge before the driver's license is reinstated, except as provided in paragraph (f).
51.32Beginning July 1, 2002, the surcharge is $145. Beginning July 1, 2003, the surcharge is
51.33$430. The $250 fee is to be credited as follows:
52.1    (1) Twenty percent must be credited to the driver services operating account in the
52.2special revenue fund as specified in section 299A.705.
52.3    (2) Sixty-seven percent must be credited to the general fund.
52.4    (3) Eight percent must be credited to a separate account to be known as the Bureau
52.5of Criminal Apprehension account. Money in this account may be appropriated to the
52.6commissioner of public safety and the appropriated amount must be apportioned 80 percent
52.7for laboratory costs and 20 percent for carrying out the provisions of section 299C.065.
52.8    (4) Five percent must be credited to a separate account to be known as the vehicle
52.9forfeiture account, which is created in the special revenue fund. The money in the account
52.10is annually appropriated to the commissioner for costs of handling vehicle forfeitures.
52.11    (c) The revenue from $50 of each the surcharge, or $25 for each year of
52.12reinstatement under paragraph (f), must be credited to a separate account to be known as
52.13the traumatic brain injury and spinal cord injury account. The money in the account is
52.14annually appropriated to the commissioner of health to be used as follows: 83 percent
52.15for contracts with a qualified community-based organization to provide information,
52.16resources, and support to assist persons with traumatic brain injury and their families to
52.17access services, and 17 percent to maintain the traumatic brain injury and spinal cord
52.18injury registry created in section 144.662. For the purposes of this paragraph, a "qualified
52.19community-based organization" is a private, not-for-profit organization of consumers of
52.20traumatic brain injury services and their family members. The organization must be
52.21registered with the United States Internal Revenue Service under section 501(c)(3) as a
52.22tax-exempt organization and must have as its purposes:
52.23    (1) the promotion of public, family, survivor, and professional awareness of the
52.24incidence and consequences of traumatic brain injury;
52.25    (2) the provision of a network of support for persons with traumatic brain injury,
52.26their families, and friends;
52.27    (3) the development and support of programs and services to prevent traumatic
52.28brain injury;
52.29    (4) the establishment of education programs for persons with traumatic brain injury;
52.30and
52.31    (5) the empowerment of persons with traumatic brain injury through participation
52.32in its governance.
52.33A patient's name, identifying information, or identifiable medical data must not be
52.34disclosed to the organization without the informed voluntary written consent of the patient
52.35or patient's guardian or, if the patient is a minor, of the parent or guardian of the patient.
53.1    (d) The remainder of the surcharge must be credited to a separate account to be
53.2known as the remote electronic alcohol-monitoring program account. The commissioner
53.3shall transfer the balance of this account to the commissioner of finance on a monthly
53.4basis for deposit in the general fund.
53.5    (e) When these fees are collected by a licensing agent, appointed under section
53.6171.061 , a handling charge is imposed in the amount specified under section 171.061,
53.7subdivision 4
. The reinstatement fees and surcharge must be deposited in an approved
53.8depository as directed under section 171.061, subdivision 4.
53.9    (f) A person whose driver's license has been revoked as provided in subdivision 1
53.10under section 169A.52 or 169A.54 and who the court certifies as being financially eligible
53.11for a public defender under section 611.17, may choose to pay 50 percent of the total
53.12amount of the surcharge and fee required under paragraph (b) to reinstate the person's
53.13driver's license, provided the person meets all other requirements of reinstatement. If a
53.14person chooses to pay 50 percent of the total, the driver's license must expire after two
53.15years. The person must pay an additional 50 percent of the total to extend the license for
53.16an additional two years, provided the person is otherwise still eligible for the license. After
53.17this final payment of the surcharge and fee, the license may be renewed on a standard
53.18schedule, as provided under section 171.27. A handling charge may be imposed for each
53.19installment payment.
53.20    (g) Any person making installment payments under paragraph (f), whose driver's
53.21license subsequently expires, or is canceled, revoked, or suspended before payment of
53.22100 percent of the surcharge and fee, must pay the outstanding balance due for the initial
53.23reinstatement before the driver's license is subsequently reinstated. Upon payment of
53.24the outstanding balance due for the initial reinstatement, the person may pay any new
53.25surcharge and fee imposed under paragraph (b) in installment payments as provided
53.26under paragraph (f).
53.27EFFECTIVE DATE.This section is effective July 1, 2008.

53.28    Sec. 5. Minnesota Statutes 2006, section 174.03, subdivision 9, is amended to read:
53.29    Subd. 9. Forecast of revenues and expenditures. In cooperation with the
53.30Department of Finance and as required by section 16A.103, the commissioner shall
53.31prepare in February and November of each year a forecast of highway user tax distribution
53.32fund and trunk highway fund revenues and expenditures. The forecast must include an
53.33analysis of economic information and the potential impact on highway user fund revenues,
53.34historical growth rate information, and other variables affecting revenue assumptions and
53.35forecasted future growth rates. The forecast must include an analysis of trunk highway
54.1bonding and the necessary debt service payments, and assumptions regarding federal
54.2transportation funds. The commissioner shall review the forecast information with the
54.3chairs of the senate and house of representatives committees with jurisdiction over finance,
54.4ways and means, and transportation finance and with legislative fiscal staff no later than
54.5two weeks before one week following the release of the forecast is released and shall
54.6inform the chairs and staff of changes made from previous forecasts.

54.7    Sec. 6. Minnesota Statutes 2006, section 174.03, is amended by adding a subdivision
54.8to read:
54.9    Subd. 10. Highway construction training. (a) The commissioner of transportation
54.10shall utilize the maximum feasible amount of all federal funds available to this state
54.11under United States Code, title 23, section 140, paragraph (b), to develop, conduct, and
54.12administer highway construction training, including skill improvement programs.
54.13    (b) The commissioner of transportation must report by February 1 of each
54.14odd-numbered year to the house of representatives and senate committees having
54.15jurisdiction over transportation policy and finance concerning the commissioner's
54.16compliance with paragraph (a). The report must, with respect to each of the two previous
54.17calendar years:
54.18    (1) describe the highway construction training and skill improvement programs the
54.19commissioner has conducted and administered;
54.20    (2) analyze the results of the commissioner's training programs;
54.21    (3) state the amount of federal funds available to this state under United States Code,
54.22title 23, section 140, paragraph (b); and
54.23    (4) identify the amount spent by the commissioner in conducting and administering
54.24the programs.

54.25    Sec. 7. Minnesota Statutes 2006, section 174.03, is amended by adding a subdivision
54.26to read:
54.27    Subd. 11. Disadvantaged business enterprise program. (a) The commissioner
54.28shall include in each contract that is funded at least in part by federal funds, a sanction
54.29for each contractor who does not meet the established project disadvantaged business
54.30enterprise goal or demonstrate good faith effort to meet the goal.
54.31    (b) The commissioner of transportation shall report by February 1 of each
54.32odd-numbered year to the house of representatives and senate committees having
54.33jurisdiction over transportation policy and finance concerning the commissioner's
55.1disadvantaged business enterprise program. The report must, with respect to each of
55.2the two previous calendar years:
55.3    (1) state the department's annual overall goal, compared with the percentage attained;
55.4    (2) explain the methodology, applicable facts, and public participation used to
55.5establish the overall goal;
55.6    (3) describe good faith efforts to meet the goal, if the goal was not attained;
55.7    (4) describe actions to address overconcentration of disadvantaged business
55.8enterprises in certain types of work;
55.9    (5) state the number of contracts that included disadvantaged business enterprise
55.10goals, the number of contractors that met established disadvantaged business enterprise
55.11goals, and sanctions imposed for lack of good faith effort; and
55.12    (6) describe contracts with no disadvantaged business enterprise goals, and, of
55.13those, state number of contracts and amount of each contract with targeted groups under
55.14section 16C.16.

55.15    Sec. 8. Minnesota Statutes 2006, section 174.24, subdivision 2a, is amended to read:
55.16    Subd. 2a. Eligible activities. Activities eligible for assistance under the program
55.17include but are not limited to:
55.18    (1) planning and engineering design for transit services and facilities;
55.19    (2) capital assistance to purchase or refurbish transit vehicles and other capital
55.20expenditures necessary to provide a transit service;
55.21    (3) operating assistance as provided under subdivision 3b; and
55.22    (4) partnership creation to coordinate and supplement services of county, local, and
55.23private transit providers;
55.24    (5) design and operation of regional call centers; and
55.25    (6) other assistance for public transit services that furthers the purposes of section
55.26174.21 .

55.27    Sec. 9. Minnesota Statutes 2006, section 174.255, is amended by adding a subdivision
55.28to read:
55.29    Subd. 1a. Service standard. The commissioner shall require any paratransit project
55.30that serves disabled individuals and receives assistance under section 174.24 to allow
55.31passengers to schedule trips up to four days in advance.
55.32EFFECTIVE DATE.This section is effective January 1, 2010.

56.1    Sec. 10. Minnesota Statutes 2006, section 174.29, is amended by adding a subdivision
56.2to read:
56.3    Subd. 4. Supplementary paratransit. The commissioner shall facilitate the
56.4creation of partnerships among paratransit providers, including, but not limited to, medical
56.5assistance transportation providers, to supplement and coordinate with available county
56.6and local transit service.

56.7    Sec. 11. Minnesota Statutes 2006, section 174.29, is amended by adding a subdivision
56.8to read:
56.9    Subd. 5. Intercounty service. The commissioner shall require providers of
56.10service to enter into regional intercounty service agreements with adjacent counties.
56.11The commissioner, in cooperation with state agencies that assist, provide, reimburse, or
56.12regulate special transportation services, shall establish a reimbursement mechanism to
56.13facilitate reimbursement for intercounty trips.
56.14EFFECTIVE DATE.This section is effective January 1, 2010.

56.15    Sec. 12. Minnesota Statutes 2006, section 174.29, is amended by adding a subdivision
56.16to read:
56.17    Subd. 6. One-stop call centers. The commissioner shall promote, support, and
56.18facilitate the establishment and operation of one-stop regional call centers that assist
56.19callers in arranging the most efficient and cost-effective available rides while meeting
56.20passengers' needs for special equipment.
56.21EFFECTIVE DATE.This section is effective January 1, 2010.

56.22    Sec. 13. [174.56] REPORT ON MAJOR HIGHWAY PROJECTS.
56.23    Subdivision 1. Report required. The commissioner of transportation shall submit a
56.24report on January 15, 2008, and on January 15 of each year thereafter, on the status of
56.25major highway projects under construction or planned during the year of the report and for
56.26the ensuing 15 years. For purposes of this section, a "major highway project" is a highway
56.27project that has a total cost for all segments that the commissioner estimates at the time
56.28of the report to be at least $10,000,000.
56.29    Subd. 2. Report contents. For each major highway project the report must include:
56.30    (1) a description of the project sufficient to specify its scope and location;
56.31    (2) a history of the project, including, but not limited to, previous official actions
56.32by the department or the appropriate area transportation partnership, or both, the date
57.1on which the project was first included in the state transportation improvement plan,
57.2the cost of the project at that time, the dates of environmental approval, the dates of
57.3municipal approval, the date of final geometric layout, and the date of establishment of
57.4any construction limits;
57.5    (3) the project's priority listing or rank within its construction district, if any, as
57.6well as the reasons for that listing or rank, the criteria used in prioritization or rank, any
57.7changes in that prioritization or rank since the project was first included in a department
57.8work plan, and the reasons for those changes; and
57.9    (4) past and potential future reasons for delay in letting or completing the project.
57.10    Subd. 3. Department resources. The commissioner shall prepare and submit the
57.11report under this section with existing department staff and resources.

57.12    Sec. 14. [398A.10] TRANSIT FUNDING.
57.13    Subdivision 1. Capital costs. A county regional railroad authority may not
57.14contribute more than ten percent of the capital costs on a transit project. For purposes of
57.15this section, "transit project" includes, but is not limited to, light rail transit, bus, bus
57.16rapid transit, and commuter rail.
57.17    Subd. 2. Operating and maintenance costs. A county regional railroad authority
57.18may not contribute any funds to pay the operating and maintenance costs for a transit
57.19project, as defined in subdivision 1. If a county regional railroad authority is contributing
57.20funds for operating and maintenance costs on a transit project on the date of the enactment
57.21of this act, the authority may continue to contribute funds for these purposes until January
57.221, 2009.
57.23EFFECTIVE DATE.This section is effective July 1, 2007.

57.24    Sec. 15. Minnesota Statutes 2006, section 473.166, is amended to read:
57.25473.166 CONTROLLED ACCESS; TRANSIT FIXED-GUIDEWAY;
57.26APPROVAL.
57.27    Before acquiring land for or constructing a controlled access highway or transit
57.28fixed-guideway in the area, the state Transportation Department or local government
57.29unit proposing the acquisition or construction shall submit to the council a statement
57.30describing the proposed project. The statement must be in the form and detail required by
57.31the council. The council shall review the statement to ascertain its consistency with its
57.32policy plan and the development guide. No project may be undertaken unless the council
58.1determines that it is consistent with the policy plan. This approval is in addition to the
58.2requirements of any other statute, ordinance or rule.

58.3    Sec. 16. Minnesota Statutes 2006, section 473.386, subdivision 3, is amended to read:
58.4    Subd. 3. Duties of council. In implementing the special transportation service, the
58.5council shall:
58.6    (a) encourage participation in the service by public, private, and private nonprofit
58.7providers of special transportation currently receiving capital or operating assistance
58.8from a public agency;
58.9    (b) contract with public, private, and private nonprofit providers that have
58.10demonstrated their ability to effectively provide service at a reasonable cost;
58.11    (c) encourage individuals using special transportation to use the type of service
58.12most appropriate to their particular needs;
58.13    (d) ensure that all persons providing special transportation service receive equitable
58.14treatment in the allocation of the ridership;
58.15    (e) require special transit service providers to allow passengers to schedule trips up
58.16to four days in advance and encourage shared rides to the greatest extent practicable;
58.17    (f) encourage public agencies that provide transportation to eligible individuals as a
58.18component of human services and educational programs to coordinate with this service
58.19and to allow reimbursement for transportation provided through the service at rates that
58.20reflect the public cost of providing that transportation;
58.21    (g) establish criteria to be used in determining individual eligibility for special
58.22transportation services;
58.23    (h) consult with the Transportation Accessibility Advisory Committee in a timely
58.24manner before changes are made in the provision of special transportation services,
58.25including, but not limited to, changes in policies affecting the matters subject to hearing
58.26under subdivision 2;
58.27    (i) provide for effective administration and enforcement of council policies and
58.28standards;
58.29    (j) annually evaluate providers of special transportation service to ensure compliance
58.30with the standards established for the program; and
58.31    (k) ensure that, taken as a whole including contracts with public, private, and private
58.32nonprofit providers, the geographic coverage area of the special transportation service is
58.33continuous within the boundaries of the transit taxing district, as defined as of March 1,
58.342006, in section 473.446, subdivision 2.
58.35EFFECTIVE DATE.This section is effective January 1, 2010.

59.1    Sec. 17. Minnesota Statutes 2006, section 473.39, is amended by adding a subdivision
59.2to read:
59.3    Subd. 1m. OBLIGATIONS. After July 1, 2007, in addition to other authority in
59.4this section, the council may issue certificates of indebtedness, bonds, or other obligations
59.5under this section in an amount not exceeding $44,000,000 for capital expenditures as
59.6prescribed in the council's regional transit master plan and transit capital improvement
59.7program and for related costs, including the costs of issuance and sale of the obligations.

59.8    Sec. 18. Minnesota Statutes 2006, section 473.399, is amended to read:
59.9473.399 TRANSIT WAYS; LIGHT RAIL TRANSIT AND COMMUTER RAIL
59.10PLANNING IN THE METROPOLITAN AREA.
59.11    Subdivision 1. General requirements. (a) The council must identify in its
59.12transportation policy plan those heavily traveled corridors where development of a transit
59.13way may be feasible and cost-effective. Modes of providing service in a transit way may
59.14include bus rapid transit, light rail transit, commuter rail, or other available systems or
59.15technologies that improve transit service.
59.16(b) After the completion of environmental studies and receipt of input from the
59.17governing body of each statutory and home rule charter city, county, and town in which a
59.18transit way is proposed to be constructed, the council must designate the locally preferred
59.19alternative transit mode with respect to the corridor.
59.20(c) The council shall adopt a plan to ensure that any light rail transit facilities
59.21that are designated as the locally preferred alternative and that are to be constructed in
59.22the metropolitan area will be acquired, developed, owned, and capable of operation in
59.23an efficient, cost-effective, and coordinated manner in coordination with buses and other
59.24transportation modes and facilities. The plan may be developed and adopted in phases
59.25corresponding to phasing of construction of light rail. The council may incorporate into its
59.26plan appropriate elements of the plans of regional railroad authorities in order to avoid
59.27duplication of effort.
59.28(b) The light rail transit plan or first phase of the plan required by this section must
59.29be adopted by the council before the commissioner of transportation may begin
59.30 (d) Construction of light rail transit facilities in a particular transit corridor may not
59.31commence unless and until that mode is designated as the locally preferred alternative
59.32for that corridor by the council. Following adoption of the plan, the commissioner of
59.33transportation shall act in conformity with the plan. The commissioner shall prepare or
59.34amend the final design plans as necessary to make the plans consistent with the light
59.35rail transit plan.
60.1(c) Throughout the development and implementation of the plan, the council shall
60.2contract for or otherwise obtain engineering services to assure that the plan adequately
60.3addresses the technical aspects of light rail transit.
60.4    Subd. 1a. Integrated transportation system. The commissioner of transportation
60.5and the Metropolitan Council shall ensure that the light rail transit and commuter rail
60.6facilities are planned, designed, and implemented: (1) to move commuters and transit
60.7users into and out of, as well as within, the metropolitan area, and (2) to ensure that rail
60.8transit lines will interface with each other and other transportation facilities and services
60.9so as to provide a unified, integrated, and efficient multimodal transportation system.
60.10    Subd. 4. Expenditure of state funds. No state funds may be expended by the
60.11Metropolitan Council to study a particular light rail transit or commuter rail facility unless
60.12the funds are appropriated in legislation that identifies the route, including the origin
60.13and destination.
60.14EFFECTIVE DATE.This section is effective the day following final enactment.

60.15    Sec. 19. Minnesota Statutes 2006, section 473.3993, subdivision 3, is amended to read:
60.16    Subd. 3. Final design plan. "Final design plan" means a light rail transit plan that
60.17includes the items in the preliminary design plan and the preliminary engineering plan for
60.18the facilities proposed but with greater detail and specificity needed for construction. The
60.19final design plan must include, at a minimum:
60.20(1) final plans for the physical design of facilities, including the right-of-way
60.21definition; environmental impacts and mitigation measures; intermodal coordination with
60.22bus operations and routes; and civil engineering plans for vehicles, track, stations, parking,
60.23and access, including disability access; and
60.24(2) final plans for civil engineering for electrification, communication, and other
60.25similar facilities; operational rules, procedures, and strategies; capital costs; ridership;
60.26operating costs and revenues, and sources of funds for operating subsidies; financing for
60.27construction and operation; an implementation method; and other similar matters.
60.28The final design plan must be stated with sufficient particularity and detail to
60.29allow the proposer to begin the acquisition and construction of operable facilities. If a
60.30design-build implementation method is proposed, instead of civil engineering plans the
60.31final design plan must state detailed design criteria and performance standards for the
60.32facilities.
60.33The commissioner of transportation may use A design-build method of project
60.34development and construction may be utilized for construction of light rail transit.
60.35Notwithstanding any law to the contrary, the commissioner may award a design-build
61.1contract may be awarded on the basis of requests for proposals or requests for qualifications
61.2without bids. "Design-build method of project development and construction" means a
61.3project delivery system in which a single contractor is responsible for both the design and
61.4construction of the project and bids the design and construction together.
61.5EFFECTIVE DATE.This section is effective the day following final enactment.

61.6    Sec. 20. Minnesota Statutes 2006, section 473.3994, is amended to read:
61.7473.3994 LIGHT RAIL TRANSIT; DESIGN PLANS.
61.8    Subd. 1a. Designation of responsible authority. For each proposed light rail transit
61.9facility in the metropolitan area, the governor must designate either the Metropolitan
61.10Council or the state of Minnesota acting through the commissioner of transportation as
61.11the entity responsible for planning, designing, acquiring, constructing, and equipping the
61.12facility. For the purposes of this section and section 473.3997, the term "responsible
61.13authority" means the entity designated by the governor for a particular light rail transit
61.14facility. Notwithstanding such designation, the commissioner and the council may
61.15enter into one or more cooperative agreements with respect to the planning, designing,
61.16acquiring, constructing, or equipping of a particular light rail transit facility that provide
61.17for the parties to exercise their respective authorities in support of the project in a manner
61.18that best serves the project and the public.
61.19    Subd. 2. Preliminary design plans; public hearing. Before final design plans are
61.20prepared for a light rail transit facility in the metropolitan area, the commissioner of
61.21transportation responsible authority and the regional railroad authority or authorities
61.22in whose jurisdiction the line or lines are located must hold a public hearing on the
61.23physical design component of the preliminary design plans. The commissioner of
61.24transportation responsible authority and the regional railroad authority or authorities in
61.25whose jurisdiction the line or lines are located must provide appropriate public notice of
61.26the hearing and publicity to ensure that affected parties have an opportunity to present
61.27their views at the hearing. The commissioner responsible authority shall summarize the
61.28proceedings and testimony and maintain the record of a hearing held under this section,
61.29including any written statements submitted.
61.30    Subd. 3. Preliminary design plans; local approval. (a) At least 30 days before
61.31the hearing under subdivision 2, the commissioner of transportation responsible authority
61.32shall submit the physical design component of the preliminary design plans to the
61.33governing body of each statutory and home rule charter city, county, and town in which
61.34the route is proposed to be located. The city, county, or town shall hold a public hearing.
62.1Within 45 days after the hearing under subdivision 2, the city, county, or town shall review
62.2and approve or disapprove the plans for the route to be located in the city, county, or town.
62.3A local unit of government that disapproves the plans shall describe specific amendments
62.4to the plans that, if adopted, would cause the local unit to withdraw its disapproval. Failure
62.5to approve or disapprove the plans in writing within 45 days after the hearing is deemed
62.6to be approval, unless an extension of time is agreed to by the city, county, or town and
62.7the commissioner of transportation responsible authority.
62.8    Subd. 4. Preliminary design plans; council referral. If the governing body of
62.9one or more cities, counties, or towns disapproves the preliminary design plans within
62.10the period allowed under subdivision 3, the commissioner of transportation may refer the
62.11plans, along with any comments of local jurisdictions, to the Metropolitan Council. The
62.12council shall hold a hearing on the plans, giving the commissioner of transportation, if the
62.13responsible authority, any disapproving local governmental units, and other persons an
62.14opportunity to present their views on the plans. The council may conduct independent
62.15study as it deems desirable and may mediate and attempt to resolve disagreements about
62.16the plans. Within 90 60 days after the referral hearing, the council shall review the
62.17plans submitted by the commissioner of transportation and the council and shall decide
62.18what amendments to the plans, if any, must be made to accommodate the objections
62.19presented by the disapproving local governmental units. The commissioner shall make the
62.20Amendments to the plans as decided by the council must be made before continuing the
62.21planning and designing process.
62.22    Subd. 5. Final design plans. (a) If the final design plans incorporate a substantial
62.23change from the preliminary design plans with respect to location, length, or termini
62.24of routes; general dimension, elevation, or alignment of routes and crossings; location
62.25of tracks above ground, below ground, or at ground level; or station locations, before
62.26beginning construction, the commissioner responsible party shall submit the changed
62.27component of the final design plans to the governing body of each statutory and home
62.28rule city, county, and town in which the changed component is proposed to be located.
62.29Within 60 days after the submission of the plans, the city, county, or town shall review
62.30and approve or disapprove the changed component located in the city, county, or town. A
62.31local unit of government that disapproves the change shall describe specific amendments
62.32to the plans that, if adopted, would cause the local unit to withdraw its disapproval.
62.33Failure to approve or disapprove the changed plans in writing within the time period is
62.34deemed to be approval, unless an extension is agreed to by the city, county, or town and
62.35the commissioner responsible authority.
63.1(b) If the governing body of one or more cities, counties, or towns disapproves the
63.2changed plans within the period allowed under paragraph (a), the commissioner may refer
63.3the plans, along with any comments of local jurisdictions, to the Metropolitan Council.
63.4The council shall review the final design plans under the same procedure and with the
63.5same effect as provided in subdivision 4 for preliminary design plans.
63.6    Subd. 7. Council review. If the commissioner is the responsible authority, before
63.7proceeding with construction of a light rail transit facility, the commissioner must submit
63.8preliminary and final design plans to the Metropolitan Council. The council must review
63.9the plans for consistency with the council's development guide and approve the plans.
63.10    Subd. 8. Metropolitan significance. This section does not diminish or replace the
63.11authority of the council under section 473.173.
63.12    Subd. 9. Light rail transit operating costs. (a) Before submitting an application for
63.13federal assistance for light rail transit facilities in the metropolitan area, the applicant must
63.14provide to the Metropolitan Council estimates must prepare an estimate of the amount
63.15of operating subsidy which will be required to operate light rail transit in the corridor to
63.16which the federal assistance would be applied. The information provided to the council
63.17estimate must indicate the amount of operating subsidy estimated to be required in each
63.18of the first ten years of operation of the light rail transit facility. If the commissioner of
63.19transportation is the responsible authority, the commissioner must provide information
63.20requested by the council that is necessary to make the estimate.
63.21(b) The council must review and evaluate the information provided estimate
63.22developed under paragraph (a) with regard to the effect of operating the light rail transit
63.23facility on the currently available mechanisms for financing transit in the metropolitan area.
63.24    Subd. 10. Corridor Management Committee. The responsible authority
63.25must establish a Corridor Management Committee shall be established to advise the
63.26commissioner of transportation responsible authority in the design and construction of
63.27light rail transit in each corridor to be constructed. The Corridor Management Committee
63.28for each corridor shall consist of the following members:
63.29(1) one member appointed by each city and county in which the corridor is located;
63.30(2) the commissioner of transportation or a designee of the commissioner;
63.31(3) two members appointed by the Metropolitan Council, one of whom shall be
63.32designated as the chair of the committee;
63.33(4) one member appointed by the Metropolitan Airports Commission, if the
63.34designated corridor provides direct service to the Minneapolis-St. Paul International
63.35Airport; and
64.1(5) one member appointed by the president of the University of Minnesota, if the
64.2designated corridor provides direct service to the university.
64.3The Corridor Management Committee shall advise the commissioner of
64.4transportation responsible authority on issues relating to the alternatives analysis,
64.5environmental review, preliminary design, preliminary engineering, final design,
64.6implementation method, and construction of light rail transit in the corridor.
64.7    Subd. 13. Dispute resolution. In the event of a dispute between any of the parties
64.8arising from the parties' respective authority and responsibility under this section, the
64.9dispute shall be submitted to the Metropolitan Council for final resolution by any party to
64.10the dispute. The Metropolitan Council shall establish by July 1, 1993, a process to ensure
64.11a prompt and speedy resolution of the dispute. This process shall allow the parties to
64.12provide evidence and testimony in support of their positions.
64.13    Subd. 14. Transfer of facility after construction. If the commissioner of
64.14transportation is the responsible authority for a particular light rail transit facility, the
64.15commissioner must transfer to the Metropolitan Council all facilities constructed and
64.16all equipment and property acquired in developing the facility upon completion of
64.17construction.
64.18EFFECTIVE DATE.This section is effective the day following final enactment.

64.19    Sec. 21. Minnesota Statutes 2006, section 473.3997, is amended to read:
64.20473.3997 FEDERAL FUNDING; LIGHT RAIL TRANSIT.
64.21(a) Upon completion of the alternatives analysis and draft environmental impact
64.22statement, and selection of the locally preferred alternative, for the central corridor
64.23transit improvement project each light rail transit facility, the council, the commissioner
64.24of transportation, and the affected regional rail authorities responsible authority may
64.25prepare a joint an application for federal assistance for the light rail transit facilities in the
64.26metropolitan area facility. If the commissioner is the responsible authority, the application
64.27must be reviewed and approved by the Metropolitan Council before it is submitted by the
64.28council and the commissioner. In reviewing the application the council must consider the
64.29information submitted to it operating cost estimate developed under section 473.3994,
64.30subdivision 9
.
64.31(b) Until the application described in paragraph (a) is submitted Except for the
64.32designated responsible authority for a particular light rail transit facility, no political
64.33subdivision in the metropolitan area may on its own apply for federal assistance for light
64.34rail transit planning or construction.
65.1EFFECTIVE DATE.This section is effective the day following final enactment.

65.2    Sec. 22. [473.3999] LIGHT RAIL TRANSIT CONSTRUCTION IN THE
65.3METROPOLITAN AREA; COUNCIL AUTHORITY.
65.4The Metropolitan Council may exercise the powers granted in this chapter and in
65.5other applicable law, as necessary, to plan, design, acquire, construct, and equip light rail
65.6transit facilities in the metropolitan area as defined in section 473.121, subdivision 2.
65.7EFFECTIVE DATE.This section is effective the day following final enactment.

65.8    Sec. 23. Minnesota Statutes 2006, section 473.4051, is amended to read:
65.9473.4051 LIGHT RAIL TRANSIT OPERATION.
65.10The council shall operate all light rail transit facilities and services located in the
65.11metropolitan area upon completion of construction of the facilities and the commencement
65.12of revenue service using the facilities. The commissioner of transportation and the council
65.13may not allow the commencement of revenue service until after an appropriate period of
65.14acceptance testing to ensure safe and satisfactory performance. In assuming the operation
65.15of the system, the council must comply with section 473.415. The council shall coordinate
65.16operation of the light rail transit system with bus service to avoid duplication of service
65.17on a route served by light rail transit and to ensure the widest possible access to light rail
65.18transit lines in both suburban and urban areas by means of a feeder bus system.
65.19EFFECTIVE DATE.This section is effective the day following final enactment.

65.20    Sec. 24. Minnesota Statutes 2006, section 473.407, subdivision 1, is amended to read:
65.21    Subdivision 1. Authorization. The council may appoint peace officers, as defined
65.22in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency,
65.23as defined in section 626.84, subdivision 1, paragraph (f), known as the Metropolitan
65.24Transit Police, to police its transit property and routes, to carry out investigations, and to
65.25make arrests under sections 629.30 and 629.34. The jurisdiction of the law enforcement
65.26agency is limited to offenses relating to council transit property, equipment, employees,
65.27and passengers. The jurisdiction of the Metropolitan Transit Police shall include traffic
65.28lanes designed for bus or transit use, freeway or expressway shoulders in the seven-county
65.29metropolitan area used by authorized transit buses and metro mobility buses under section
65.30169.306, and high-occupancy vehicle lanes used by transit buses. Upon request from, or
65.31under an agreement with, any law enforcement agency and subject to the availability of
65.32its personnel and other resources, the Metropolitan Transit Police may exercise general
66.1law enforcement agency authority to assist any law enforcement agency in implementing
66.2or carrying out law enforcement activities, programs, or initiatives. If the commissioner
66.3of transportation contracts with the Metropolitan Council for operation of commuter rail
66.4facilities under section 174.90, the jurisdiction of the Metropolitan Transit Police extends
66.5to offenses relating to the operation, property, facilities, equipment, employees, and
66.6passengers of the commuter rail facilities located in and outside of the metropolitan area.
66.7EFFECTIVE DATE.This section is effective the day following final enactment.

66.8    Sec. 25. Minnesota Statutes 2006, section 473.446, subdivision 2, is amended to read:
66.9    Subd. 2. Transit taxing district. The metropolitan transit taxing district is hereby
66.10designated as that portion of the metropolitan transit area lying within the following
66.11named cities, towns, or unorganized territory within the counties indicated:
66.12(a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids,
66.13Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;
66.14(b) Carver County. Chanhassen, the city of Chaska;
66.15(c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale,
66.16Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;
66.17(d) Ramsey County. All of the territory within Ramsey County;
66.18(e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin,
66.19Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley,
66.20Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis,
66.21Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield,
66.22Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata,
66.23Woodland, the unorganized territory of Hennepin County;
66.24(f) Scott County. Prior Lake, Savage, Shakopee;
66.25(g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport,
66.26Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport,
66.27Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury means the
66.28metropolitan area.
66.29The Metropolitan Council in its sole discretion may provide transit service by
66.30contract beyond the boundaries of the metropolitan transit taxing district or to cities and
66.31towns within the taxing district which are receiving financial assistance under section
66.32473.388 , upon petition therefor by an interested city, township or political subdivision
66.33within the metropolitan transit area. The Metropolitan Council may establish such
66.34terms and conditions as it deems necessary and advisable for providing the transit
66.35service, including such combination of fares and direct payments by the petitioner as
67.1will compensate the council for the full capital and operating cost of the service and the
67.2related administrative activities of the council. The amount of the levy made by any
67.3municipality to pay for the service shall be disregarded when calculation of levies subject
67.4to limitations is made, provided that cities and towns receiving financial assistance under
67.5section 473.388 shall not make a special levy under this subdivision without having first
67.6exhausted the available local transit funds as defined in section 473.388. The council shall
67.7not be obligated to extend service beyond the boundaries of the taxing district, or to cities
67.8and towns within the taxing district which are receiving financial assistance under section
67.9473.388 , under any law or contract unless or until payment therefor is received.
67.10EFFECTIVE DATE.This section is effective July 1, 2007.

67.11    Sec. 26. Minnesota Statutes 2006, section 473.446, subdivision 8, is amended to read:
67.12    Subd. 8. State review. The commissioner of revenue shall certify the council's levy
67.13limitation under this section to the council by August 1 of the levy year. The council
67.14must certify its proposed property tax levy under this section to the commissioner of
67.15revenue by September 1 of the levy year. The commissioner of revenue shall annually
67.16determine whether the property tax for transit purposes certified by the council for levy
67.17following the adoption of its proposed budget is within the levy limitation imposed by
67.18subdivisions subdivision 1 and 1b. The commissioner shall also annually determine
67.19whether the transit tax imposed on all taxable property within the metropolitan transit area
67.20but outside of the metropolitan transit taxing district is within the levy limitation imposed
67.21by subdivision 1a. The determination must be completed prior to September 10 of each
67.22year. If current information regarding market valuation in any county is not transmitted to
67.23the commissioner in a timely manner, the commissioner may estimate the current market
67.24valuation within that county for purposes of making the calculations.
67.25EFFECTIVE DATE.This section is effective July 1, 2007.

67.26    Sec. 27. Minnesota Statutes 2006, section 609.531, subdivision 1, is amended to read:
67.27    Subdivision 1. Definitions. For the purpose of sections 609.531 to 609.5318, the
67.28following terms have the meanings given them.
67.29(a) "Conveyance device" means a device used for transportation and includes, but
67.30is not limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any
67.31equipment attached to it. The term "conveyance device" does not include property which
67.32is, in fact, itself stolen or taken in violation of the law.
68.1(b) "Weapon used" means a dangerous weapon as defined under section 609.02,
68.2subdivision 6
, that the actor used or had in possession in furtherance of a crime.
68.3(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).
68.4(d) "Contraband" means property which is illegal to possess under Minnesota law.
68.5(e) "Appropriate agency" means the Bureau of Criminal Apprehension, the
68.6Minnesota Division of Driver and Vehicle Services, the Minnesota State Patrol, a
68.7county sheriff's department, the Three Rivers Park District park rangers, the Department
68.8of Natural Resources Division of Enforcement, the University of Minnesota Police
68.9Department, the Department of Corrections' Fugitive Apprehension Unit, or a city,
68.10metropolitan transit, or airport police department.
68.11(f) "Designated offense" includes:
68.12(1) for weapons used: any violation of this chapter, chapter 152, or chapter 624;
68.13(2) for driver's license or identification card transactions: any violation of section
68.14171.22 ; and
68.15(3) for all other purposes: a felony violation of, or a felony-level attempt or
68.16conspiracy to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.21;
68.17609.221 ; 609.222; 609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.282;
68.18609.283 ; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1,
68.19clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j); 609.345,
68.20subdivision 1
, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466;
68.21609.485 ; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561;
68.22609.562 ; 609.563; 609.582; 609.59; 609.595; 609.631; 609.66, subdivision 1e; 609.671,
68.23subdivisions 3, 4, 5, 8, and 12
; 609.687; 609.821; 609.825; 609.86; 609.88; 609.89;
68.24609.893 ; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation of
68.25section 609.891 or 624.7181; or any violation of section 609.324.
68.26(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.
68.27EFFECTIVE DATE.This section is effective the day following final enactment.

68.28    Sec. 28. NORTHSTAR CORRIDOR COMMUTER RAIL STATION.
68.29The commissioner of transportation shall incorporate a station located in the city
68.30of Fridley in final design plans and construction of the Northstar Corridor Commuter
68.31Rail Line.
68.32EFFECTIVE DATE.This section is effective the day following final enactment.

68.33    Sec. 29. REPORTS ON SPECIAL TRANSPORTATION SERVICES.
69.1    The commissioner of transportation with respect to special transportation services
69.2outside the metropolitan area, and the Metropolitan Council, with respect to special
69.3transportation services within the metropolitan area, shall each:
69.4    (1) assess transit needs of people with disabilities;
69.5    (2) establish a five-year phased plan to meet the identified needs to the maximum
69.6feasible extent;
69.7    (3) incorporate a minimum of service for 14 hours per day into the five-year plan;
69.8    (4) identify both capital and operating needs for each year of the phased plan, as
69.9well as ongoing needs of the fully implemented program; and
69.10    (5) identify all funding sources and proposals for utilizing federal funds.
69.11    The commissioner of transportation and the Metropolitan Council shall each report
69.12findings and recommendations under this section to the chairs and ranking minority
69.13members of the senate and house of representatives committees with jurisdiction over
69.14transportation finance and policy no later than December 15, 2008.

69.15    Sec. 30. APPLICATION.
69.16Sections 15 to 27 apply in the counties of Anoka, Carver, Dakota, Hennepin,
69.17Ramsey, Scott, and Washington.
69.18EFFECTIVE DATE.This section is effective the day following final enactment.

69.19    Sec. 31. REPEALER.
69.20(a) Minnesota Statutes 2006, sections 473.123, subdivision 3d; and 473.4461, are
69.21repealed.
69.22(b) Laws 1999, chapter 230, section 44, is repealed.

69.23ARTICLE 11
69.24CREDIT CARD PAYMENTS

69.25    Section 1. CREDIT CARD PAYMENT STUDY.
69.26    By January 15, 2008, the commissioner of public safety shall submit a proposal to
69.27the chairs and ranking minority members of the senate transportation committee and the
69.28house of representatives transportation finance division that will allow the department,
69.29deputy registrars, and driver's license agents to collect motor vehicle registration taxes
69.30under Minnesota Statutes, section 168.013, motor vehicle certificates of title and related
69.31document fees under Minnesota Statutes, section 168A.29, motor vehicle sales tax under
69.32Minnesota Statutes, sections 297B.02 and 297B.025, and driver's license and Minnesota
70.1identification card fees under Minnesota Statutes, section 171.06, by credit or debit card.
70.2The proposal shall include options to finance the costs of credit and debit card processing
70.3fees paid to the processing vendor, the administrative costs of the department to implement
70.4the acceptance of credit and debit cards, including hardware and software costs of the
70.5department, its deputies and agents, and the ongoing administrative cost increases. Those
70.6financing options may include, but are not limited to, increasing the filing fees under
70.7Minnesota Statutes, sections 168.33 and 171.06. To the extent feasible, the proposal shall
70.8limit any fee increases or other additional costs paid by the registrant or transferor to those
70.9paying by credit or debit card. As part of its proposal, the department may:
70.10    (1) elect to not allow credit or debit cards to be used on transactions exceeding
70.11$1,000;
70.12    (2) choose to limit which credit cards or debit cards may be accepted for payment;
70.13and
70.14    (3) choose not to allow dealers, registrants of fleet vehicles under Minnesota
70.15Statutes, section 168.127, or motor vehicles of 26,000 pounds or greater, and other
70.16designated registrants to pay by credit or debit card.
70.17The department shall consult deputy registrars and driver's license agents in coming up
70.18with its proposal.