1.1                          A bill for an act 
  1.2             relating to public safety; modifying vehicle 
  1.3             registration and titling provisions; regulating motor 
  1.4             vehicle dealer transactions; allowing electronic 
  1.5             transactions with department of public safety; 
  1.6             modifying provisions governing road inspections, first 
  1.7             hauls, and weight allowances for commercial motor 
  1.8             vehicles and requiring a study; modifying bicycle 
  1.9             registration provisions; modifying traffic regulations 
  1.10            relating to traffic-control signals, railroad grade 
  1.11            crossings, special mobile equipment, vehicle license 
  1.12            plates, and motorcycles; modifying provisions relating 
  1.13            to drivers' licenses and state identification cards; 
  1.14            exempting certain federal funds from statutory 
  1.15            matching requirements; authorizing expenditure of 
  1.16            money on bus service to mitigate traffic impact of 
  1.17            certain highway construction; modifying, clarifying, 
  1.18            and reorganizing motor carrier fuel tax provisions; 
  1.19            authorizing rules; making technical and clarifying 
  1.20            changes; amending Minnesota Statutes 2000, sections 
  1.21            168.011, subdivisions 4, 17, 34; 168.013, subdivision 
  1.22            3; 168.09, subdivisions 1, 3; 168.10, subdivision 1c; 
  1.23            168.187, subdivision 26; 168.27, as amended; 168.31, 
  1.24            subdivision 4; 168.33, subdivision 6, by adding a 
  1.25            subdivision; 168A.01, subdivisions 2, 24, by adding a 
  1.26            subdivision; 168A.04, subdivision 5; 168A.05, 
  1.27            subdivision 5a; 168A.09, subdivision 1; 168A.11, 
  1.28            subdivision 2; 168A.12, subdivisions 1, 2; 168A.15, by 
  1.29            adding a subdivision; 168A.154; 168A.18; 168A.19, 
  1.30            subdivision 2; 168A.20, subdivisions 2, 3, 4; 168A.24, 
  1.31            subdivision 1; 168C.02, subdivisions 1, 5; 168C.03; 
  1.32            168C.04, subdivision 1; 168C.05; 168C.06; 168C.07; 
  1.33            168C.08; 168C.09; 168C.11; 168C.12; 168C.13, 
  1.34            subdivision 1; 169.06, by adding a subdivision; 
  1.35            169.26, subdivision 1; 169.28, subdivision 1; 169.771, 
  1.36            subdivisions 2, 3; 169.85, subdivisions 1, 2; 169.851, 
  1.37            subdivision 3; 169.86, subdivision 5; 169.974, 
  1.38            subdivision 5; 171.02, subdivisions 1, 5; 171.04, 
  1.39            subdivision 1; 171.05, subdivision 2; 171.055, 
  1.40            subdivision 1; 171.06, subdivisions 1, 3; 171.07, 
  1.41            subdivision 3; 171.13, subdivision 2; 171.165; 
  1.42            296A.23, subdivision 7; Minnesota Statutes 2001 
  1.43            Supplement, sections 168.012, subdivision 1; 169.781, 
  1.44            subdivision 2; 169.79, subdivisions 3, 8, by adding a 
  1.45            subdivision; 171.07, subdivision 1; 221.221, 
  1.46            subdivision 2; proposing coding for new law in 
  2.1             Minnesota Statutes, chapter 168; proposing coding for 
  2.2             new law as Minnesota Statutes, chapter 168D; repealing 
  2.3             Minnesota Statutes 2000, sections 171.30, subdivision 
  2.4             3; 296A.27; 296A.28. 
  2.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.6                              ARTICLE 1 
  2.7                       PUBLIC SAFETY MISCELLANY 
  2.8      Section 1.  Minnesota Statutes 2000, section 168.011, 
  2.9   subdivision 4, is amended to read: 
  2.10     Subd. 4.  [MOTOR VEHICLE.] (a) "Motor vehicle" means any 
  2.11  self-propelled vehicle designed and originally manufactured to 
  2.12  operate primarily upon public roads and highways, and not 
  2.13  operated exclusively upon railroad tracks and.  It includes any 
  2.14  vehicle propelled or drawn by a self-propelled vehicle and 
  2.15  includes vehicles known as trackless trolleys which that are 
  2.16  propelled by electric power obtained from overhead trolley wires 
  2.17  but not operated upon rails, except.  It does not include 
  2.18  snowmobiles, manufactured homes, and or park trailers.  
  2.19     (b) "Motor vehicle" also includes an all-terrain vehicle, 
  2.20  as defined in section 84.92, subdivision 8, which that (1) has 
  2.21  at least four wheels, (2) is owned and operated by a physically 
  2.22  disabled person, and (3) displays both physically disabled 
  2.23  license plates and a physically disabled certificate issued 
  2.24  under section 169.345, subdivision 3. 
  2.25     (c) Motor vehicle does not include an all-terrain vehicle 
  2.26  as defined in section 84.92, subdivision 8; except (1) an 
  2.27  all-terrain vehicle described in paragraph (b), or (2) an 
  2.28  all-terrain vehicle licensed as a motor vehicle before August 1, 
  2.29  1985, in which case.  The owner may continue to license it an 
  2.30  all-terrain vehicle described in clause (2) as a motor vehicle 
  2.31  until it is conveyed or otherwise transferred to another owner, 
  2.32  is destroyed, or fails to comply with the registration and 
  2.33  licensing requirements of this chapter. 
  2.34     Sec. 2.  Minnesota Statutes 2000, section 168.011, 
  2.35  subdivision 34, is amended to read: 
  2.36     Subd. 34.  [FLEET.] "Fleet" means a combination of 100 50 
  2.37  or more vehicles and trailers owned by a person solely for the 
  3.1   use of that person or employees of the person and registered in 
  3.2   this state under section 168.127.  It does not include vehicles 
  3.3   licensed under section 168.187. 
  3.4      Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  3.5   168.012, subdivision 1, is amended to read: 
  3.6      Subdivision 1.  [VEHICLES EXEMPT FROM TAX, FEES, OR PLATE 
  3.7   DISPLAY.] (a) The following vehicles are exempt from the 
  3.8   provisions of this chapter requiring payment of tax and 
  3.9   registration fees, except as provided in subdivision 1c:  
  3.10     (1) vehicles owned and used solely in the transaction of 
  3.11  official business by the federal government, the state, or any 
  3.12  political subdivision; 
  3.13     (2) vehicles owned and used exclusively by educational 
  3.14  institutions and used solely in the transportation of pupils to 
  3.15  and from those institutions; 
  3.16     (3) vehicles used solely in driver education programs at 
  3.17  nonpublic high schools; 
  3.18     (4) vehicles owned by nonprofit charities and used 
  3.19  exclusively to transport disabled persons for educational 
  3.20  purposes; 
  3.21     (5) vehicles owned and used by honorary consul; 
  3.22     (6) ambulances owned by ambulance services licensed under 
  3.23  section 144E.10, the general appearance of which is 
  3.24  unmistakable; and 
  3.25     (7) (6) vehicles owned by a commercial driving school 
  3.26  licensed under section 171.34, or an employee of a commercial 
  3.27  driving school licensed under section 171.34, and the vehicle is 
  3.28  used exclusively for driver education and training. 
  3.29     (b) Vehicles owned by the federal government, municipal 
  3.30  fire apparatuses including fire-suppression support vehicles, 
  3.31  police patrols, and ambulances, the general appearance of which 
  3.32  is unmistakable, are not required to register or display number 
  3.33  plates.  
  3.34     (c) Unmarked vehicles used in general police work, liquor 
  3.35  investigations, or arson investigations, and passenger 
  3.36  automobiles, pickup trucks, and buses owned or operated by the 
  4.1   department of corrections, must be registered and must display 
  4.2   appropriate license number plates, furnished by the registrar at 
  4.3   cost.  Original and renewal applications for these license 
  4.4   plates authorized for use in general police work and for use by 
  4.5   the department of corrections must be accompanied by a 
  4.6   certification signed by the appropriate chief of police if 
  4.7   issued to a police vehicle, the appropriate sheriff if issued to 
  4.8   a sheriff's vehicle, the commissioner of corrections if issued 
  4.9   to a department of corrections vehicle, or the appropriate 
  4.10  officer in charge if issued to a vehicle of any other law 
  4.11  enforcement agency.  The certification must be on a form 
  4.12  prescribed by the commissioner and state that the vehicle will 
  4.13  be used exclusively for a purpose authorized by this section.  
  4.14     (d) Unmarked vehicles used by the departments of revenue 
  4.15  and labor and industry, fraud unit, in conducting seizures or 
  4.16  criminal investigations must be registered and must display 
  4.17  passenger vehicle classification license number plates, 
  4.18  furnished at cost by the registrar.  Original and renewal 
  4.19  applications for these passenger vehicle license plates must be 
  4.20  accompanied by a certification signed by the commissioner of 
  4.21  revenue or the commissioner of labor and industry.  The 
  4.22  certification must be on a form prescribed by the commissioner 
  4.23  and state that the vehicles will be used exclusively for the 
  4.24  purposes authorized by this section. 
  4.25     (e) Unmarked vehicles used by the division of disease 
  4.26  prevention and control of the department of health must be 
  4.27  registered and must display passenger vehicle classification 
  4.28  license number plates.  These plates must be furnished at cost 
  4.29  by the registrar.  Original and renewal applications for these 
  4.30  passenger vehicle license plates must be accompanied by a 
  4.31  certification signed by the commissioner of health.  The 
  4.32  certification must be on a form prescribed by the commissioner 
  4.33  and state that the vehicles will be used exclusively for the 
  4.34  official duties of the division of disease prevention and 
  4.35  control.  
  4.36     (f) Unmarked vehicles used by staff of the gambling control 
  5.1   board in gambling investigations and reviews must be registered 
  5.2   and must display passenger vehicle classification license number 
  5.3   plates.  These plates must be furnished at cost by the 
  5.4   registrar.  Original and renewal applications for these 
  5.5   passenger vehicle license plates must be accompanied by a 
  5.6   certification signed by the board chair.  The certification must 
  5.7   be on a form prescribed by the commissioner and state that the 
  5.8   vehicles will be used exclusively for the official duties of the 
  5.9   gambling control board.  
  5.10     (g) All other motor vehicles must be registered and display 
  5.11  tax-exempt number plates, furnished by the registrar at cost, 
  5.12  except as provided in subdivision 1c.  All vehicles required to 
  5.13  display tax-exempt number plates must have the name of the state 
  5.14  department or political subdivision, nonpublic high school 
  5.15  operating a driver education program, or licensed commercial 
  5.16  driving school, plainly displayed on both sides of the vehicle; 
  5.17  except that each state hospital and institution for the mentally 
  5.18  ill and mentally retarded may have one vehicle without the 
  5.19  required identification on the sides of the vehicle, and county 
  5.20  social service agencies may have vehicles used for child and 
  5.21  vulnerable adult protective services without the required 
  5.22  identification on the sides of the vehicle.  This identification 
  5.23  must be in a color giving contrast with that of the part of the 
  5.24  vehicle on which it is placed and must endure throughout the 
  5.25  term of the registration.  The identification must not be on a 
  5.26  removable plate or placard and must be kept clean and visible at 
  5.27  all times; except that a removable plate or placard may be 
  5.28  utilized on vehicles leased or loaned to a political subdivision 
  5.29  or to a nonpublic high school driver education program. 
  5.30     Sec. 4.  Minnesota Statutes 2000, section 168.013, 
  5.31  subdivision 3, is amended to read: 
  5.32     Subd. 3.  [APPLICATION; CANCELLATION; EXCESSIVE GROSS 
  5.33  WEIGHT FORBIDDEN.] (a) The applicant for all licenses based on 
  5.34  gross weight shall state the unloaded weight of the motor 
  5.35  vehicle, trailer, or semitrailer and the maximum load the 
  5.36  applicant proposes to carry thereon on it, the sum of 
  6.1   which shall constitute constitutes the gross weight upon which 
  6.2   the license tax shall must be paid, but in no case shall.  
  6.3   However, the declared gross weight upon which the tax is 
  6.4   paid must not be less than 1-1/4 times the declared unloaded 
  6.5   weight of the motor vehicle, trailer, or semitrailer to be 
  6.6   registered, except recreational vehicles taxed under subdivision 
  6.7   1g, school buses taxed under subdivision 18, and tow trucks or 
  6.8   towing vehicles defined in section 169.01, subdivision 52.  The 
  6.9   gross weight of a tow truck or towing vehicle is the actual 
  6.10  weight of the tow truck or towing vehicle fully equipped, but 
  6.11  does not include the weight of a wrecked or disabled vehicle 
  6.12  towed or drawn by the tow truck or towing vehicle. 
  6.13     (b) The gross weight of no a motor vehicle, trailer, or 
  6.14  semitrailer shall must not exceed the gross weight upon which 
  6.15  the license tax has been paid by more than four percent or 1,000 
  6.16  pounds, whichever is greater. 
  6.17     (c) The gross weight of the motor vehicle, trailer, or 
  6.18  semitrailer for which the license tax is paid shall must be 
  6.19  indicated by a distinctive character on the license plate or 
  6.20  plates except as provided in subdivision 12 and the plate or 
  6.21  plates shall must be kept clean and clearly visible at all times.
  6.22     (d) The owner, driver, or user of a motor vehicle, trailer, 
  6.23  or semitrailer, upon conviction for transporting a gross weight 
  6.24  in excess of the gross weight for which it was registered or for 
  6.25  operating a vehicle with an axle weight exceeding the maximum 
  6.26  lawful axle load weight shall be, is guilty of a misdemeanor and 
  6.27  be subject to increased registration or reregistration according 
  6.28  to the following schedule: 
  6.29     (1) The owner, driver or user of a motor vehicle, trailer 
  6.30  or semitrailer Upon conviction for transporting a gross weight 
  6.31  in excess of the gross weight for which it a motor vehicle, 
  6.32  trailer, or semitrailer is registered by more than four percent 
  6.33  or 1,000 pounds, whichever is greater, but less than 25 percent, 
  6.34  or for operating or using a motor vehicle, trailer, or 
  6.35  semitrailer with an axle weight exceeding the maximum lawful 
  6.36  axle load as provided in section 169.825 by more than four 
  7.1   percent or 1,000 pounds, whichever is greater, but less than 25 
  7.2   percent, the owner, driver, or user of the motor vehicle, 
  7.3   trailer, or semitrailer used to commit the violation, in 
  7.4   addition to any penalty imposed for the misdemeanor, shall apply 
  7.5   to the registrar to increase the authorized gross weight to be 
  7.6   carried on the vehicle to a weight equal to or greater than the 
  7.7   gross weight the owner, driver, or user was convicted of 
  7.8   carrying,.  The increase is computed for the balance of the 
  7.9   calendar year on the basis of 1/12 of the annual tax for each 
  7.10  month remaining in the calendar year beginning with the first 
  7.11  day of the month in which the violation occurred.  If the 
  7.12  additional registration tax computed upon that weight, plus the 
  7.13  tax already paid, amounts to more than the regular tax for the 
  7.14  maximum gross weight permitted for the vehicle under section 
  7.15  169.825, that additional amount shall must nevertheless be paid 
  7.16  into the highway fund, but the additional tax thus paid shall 
  7.17  does not authorize or permit any person to operate the vehicle 
  7.18  to be operated with a gross weight in excess of the maximum 
  7.19  legal weight as provided by section 169.825.  Unless the owner 
  7.20  within 30 days after a conviction shall apply applies to 
  7.21  increase the authorized weight and pay pays the additional tax 
  7.22  as provided in this section, the registrar shall revoke the 
  7.23  registration on the vehicle and demand the return of the 
  7.24  registration card and plates issued on that registration. 
  7.25     (2) The owner or driver or user of a motor vehicle, trailer 
  7.26  or semitrailer Upon conviction of an owner, driver, or user of a 
  7.27  motor vehicle, trailer, or semitrailer for transporting a gross 
  7.28  weight in excess of the gross weight for which the motor 
  7.29  vehicle, trailer, or semitrailer was registered by 25 percent or 
  7.30  more, or for operating or using a the vehicle or trailer with an 
  7.31  axle weight exceeding the maximum lawful axle load as provided 
  7.32  in section 169.825 by 25 percent or more, and in addition to any 
  7.33  penalty imposed for the misdemeanor, the registrar shall have 
  7.34  either (i) cancel the reciprocity privileges on the vehicle 
  7.35  involved if the vehicle is being operated under 
  7.36  reciprocity canceled by the registrar, or (ii) if the vehicle is 
  8.1   not being operated under reciprocity, cancel the certificate of 
  8.2   registration on the vehicle operated shall be canceled by the 
  8.3   registrar and the registrar shall demand the return of the 
  8.4   registration certificate and registration plates.  The registrar 
  8.5   may not cancel the registration or reciprocity privileges for 
  8.6   any vehicle found in violation of seasonal load restrictions 
  8.7   imposed under section 169.87 unless the axle weight exceeds the 
  8.8   year-round weight limit for the highway on which the violation 
  8.9   occurred.  The registrar may investigate any allegation of gross 
  8.10  weight violations and demand that the operator show cause why 
  8.11  all future operating privileges in the state should not be 
  8.12  revoked unless the additional tax assessed is paid. 
  8.13     (3) Clause (1) does not apply to the first haul of 
  8.14  unprocessed or raw farm products or unfinished forest products, 
  8.15  when the registered gross weight is not exceeded by more than 
  8.16  ten percent.  For purposes of this clause, "first haul" means (i)
  8.17  the first, continuous transportation of unprocessed or raw farm 
  8.18  products from the place of production or on-farm storage site to 
  8.19  any other location within 50 miles of the place of production or 
  8.20  on-farm storage site, or (ii) the first, continuous 
  8.21  transportation of unfinished forest products from the place of 
  8.22  production to the place of first unloading. 
  8.23     (4) When the registration on a motor vehicle, trailer, or 
  8.24  semitrailer is revoked by the registrar according to provisions 
  8.25  of this section, the vehicle shall must not be operated on the 
  8.26  highways of the state until it is registered or reregistered, as 
  8.27  the case may be, and new plates issued, and the registration fee 
  8.28  shall be is the annual tax for the total gross weight of the 
  8.29  vehicle at the time of violation.  The reregistration pursuant 
  8.30  to this subdivision of any vehicle operating under reciprocity 
  8.31  agreements pursuant to section 168.181 or 168.187 shall must be 
  8.32  at the full annual registration fee without regard to the 
  8.33  percentage of vehicle miles traveled in this state.  
  8.34     Sec. 5.  Minnesota Statutes 2000, section 168.09, 
  8.35  subdivision 1, is amended to read: 
  8.36     Subdivision 1.  [REGISTRATION REQUIRED.] No trailer or 
  9.1   motor vehicle, except as is exempted by section 168.012, shall 
  9.2   use may be used or be operated upon the public streets or 
  9.3   highways of the state in any calendar year until it is 
  9.4   registered, as provided in this section, and the motor vehicle 
  9.5   tax and fees as provided in this chapter are paid, and the 
  9.6   number plates issued for the trailer or motor vehicle are 
  9.7   displayed on the vehicle it.  No trailer or motor vehicle, 
  9.8   except as provided by section 168.012, which shall for any 
  9.9   reason is not be subject to taxation as provided in this 
  9.10  chapter, shall use may be used or be operated upon the public 
  9.11  streets or highways of this state until it is registered, as 
  9.12  provided in this section, and shall display displays number 
  9.13  plates as required by the provisions of this chapter, except 
  9.14  that the purchaser of a new trailer or motor vehicle may operate 
  9.15  that motor vehicle it without plates if the permit authorized by 
  9.16  section 168.091 or 168.092 is displayed. 
  9.17     Sec. 6.  Minnesota Statutes 2000, section 168.09, 
  9.18  subdivision 3, is amended to read: 
  9.19     Subd. 3.  [PRORATABLE VEHICLES; OTHER VEHICLES.] (a) Plates 
  9.20  or other insignia issued for a motor vehicle registered under 
  9.21  the provisions of section 168.187 for a calendar year shall be 
  9.22  displayed on the motor vehicle not later than 12:01 a.m. on 
  9.23  March 2 of the year unless extended by the registrar for the 
  9.24  period of time required for the issuance of the new plates or 
  9.25  insignia.  The commissioner of public safety shall register all 
  9.26  motor vehicles registered under section 168.187 for a period of 
  9.27  14 months for the registration year 1994 to implement the 
  9.28  provisions of this subdivision.  The registration year for 
  9.29  vehicles registered under section 168.187, as provided in this 
  9.30  section shall be, is from March 1 to the last day of February 
  9.31  for 1995 and succeeding years.  
  9.32     (b) Except for a motor vehicle registered under section 
  9.33  168.017 or 168.187, plates or other insignia issued for a 
  9.34  self-propelled motor vehicle registered for over 27,000 
  9.35  pounds except a motor vehicle registered under the provision of 
  9.36  sections 168.017 and 168.187 shall be displayed on the vehicle 
 10.1   not later than 12:01 a.m. on March 2 of the year, nor and, 
 10.2   except for recreational equipment, not earlier than 12:01 a.m. 
 10.3   on February 15 of the year, unless otherwise extended by the 
 10.4   registrar for the period of time required for the issuance of 
 10.5   issuing the new plates or insignia. 
 10.6      (c) Except for a motor vehicle registered under section 
 10.7   168.017 or 168.187, plates or other insignia issued for a 
 10.8   self-propelled vehicle registered for 27,000 pounds or less and 
 10.9   all other motor vehicles except those registered under the 
 10.10  provisions of section 168.017 or 168.187 shall be displayed not 
 10.11  later than 12:01 a.m. on March 2 of the year, and, except for 
 10.12  recreational equipment, not earlier than January 1 of the year 
 10.13  unless otherwise extended by the registrar for the period of 
 10.14  time required for the issuance of issuing the new plates or 
 10.15  insignia.  The registration year for all vehicles as provided in 
 10.16  this paragraph and paragraph (b) shall be is from March 1 to the 
 10.17  last day of February for 1979 and succeeding years. 
 10.18     Sec. 7.  Minnesota Statutes 2000, section 168.10, 
 10.19  subdivision 1c, is amended to read: 
 10.20     Subd. 1c.  [COLLECTOR'S VEHICLE, COLLECTOR LICENSE.] (a) 
 10.21  The owner of any motor vehicle, including any truck, that is at 
 10.22  least 20 model years old and, was manufactured after 1935, or 
 10.23  any motor vehicle of a defunct make defined as any car or truck 
 10.24  originally licensed as a separate identifiable make as 
 10.25  designated by the division of motor vehicles, and is owned and 
 10.26  operated solely as a collector's vehicle, shall be listed list 
 10.27  the vehicle for taxation and registration as follows:  
 10.28     (1) execute an affidavit shall be executed stating the name 
 10.29  and address of the person from whom purchased and of the new 
 10.30  owner, the make of the motor vehicle, the year and number of the 
 10.31  model, the manufacturer's identification number, and that the 
 10.32  vehicle is owned and operated solely as a collector's item and 
 10.33  not for general transportation purposes.  The owner must also; 
 10.34  and 
 10.35     (2) prove that the owner also has one or more vehicles with 
 10.36  regular license plates.  
 11.1   If the registrar is satisfied that the affidavit is true and 
 11.2   correct and the owner pays a $25 tax, the registrar shall list 
 11.3   the vehicle for taxation and registration and shall issue a 
 11.4   single number plate. 
 11.5      (b) The number plate issued shall bear the inscription 
 11.6   "Collector," "Minnesota," and the registration number or other 
 11.7   combination of characters authorized under section 168.12, 
 11.8   subdivision 2a, but no date.  The number plate is valid without 
 11.9   renewal as long as the vehicle is in existence.  The registrar 
 11.10  has the power to revoke the plate for failure to comply with 
 11.11  this subdivision. 
 11.12     Sec. 8.  [168.1255] [SPECIAL VETERAN CONTRIBUTION LICENSE 
 11.13  PLATES.] 
 11.14     Subdivision 1.  [GENERAL REQUIREMENTS AND PROCEDURES.] The 
 11.15  registrar shall issue special veteran contribution license 
 11.16  plates to an applicant who: 
 11.17     (1) is a veteran, as defined in section 197.447; 
 11.18     (2) is an owner or joint owner of a passenger automobile, 
 11.19  pickup truck, or van; 
 11.20     (3) pays a fee of $10 to cover the costs of handling and 
 11.21  manufacturing the plates; 
 11.22     (4) pays the registration tax required under section 
 11.23  168.013; 
 11.24     (5) pays the fees required under this chapter; 
 11.25     (6) pays an additional one-time World War II memorial 
 11.26  contribution of $30, which the department shall retain until all 
 11.27  start-up costs associated with the development and issuing of 
 11.28  the plates have been recovered, after which the commissioner 
 11.29  shall deposit contributions in the World War II donation match 
 11.30  account; and 
 11.31     (7) complies with laws and rules governing registration and 
 11.32  licensing of vehicles and drivers. 
 11.33     Subd. 2.  [DESIGN.] The commissioner of veterans affairs 
 11.34  shall design the special plates, subject to the approval of the 
 11.35  registrar, that satisfy the following requirements: 
 11.36     (1) the special veteran contribution plates must bear the 
 12.1   inscription "PROUD TO BE A VETERAN" on the bottom of the plate; 
 12.2   and 
 12.3      (2) the flag of the United States of America must appear on 
 12.4   the left side of the plate just preceding the first letter or 
 12.5   numeral of the special license plate number. 
 12.6      Subd. 3.  [PLATE TRANSFERS.] Notwithstanding section 
 12.7   168.12, subdivision 1, on payment of a transfer fee of $5, 
 12.8   plates issued under this section may be transferred to another 
 12.9   passenger automobile, pickup truck, or van owned or jointly 
 12.10  owned by the person to whom the special plates were issued. 
 12.11     Subd. 4.  [FEES CREDITED.] The fees collected under this 
 12.12  section must be deposited in the state treasury and credited to 
 12.13  the highway user tax distribution fund.  Fees collected under 
 12.14  this section do not include the contributions collected for the 
 12.15  World War II memorial donation match account. 
 12.16     Subd. 5.  [RECORD.] The registrar shall maintain a record 
 12.17  of the number of special plates issued under this section. 
 12.18     Sec. 9.  Minnesota Statutes 2000, section 168.27, as 
 12.19  amended by Laws 2001, chapter 151, section 1; and Laws 2001, 
 12.20  First Special Session chapter 8, article 2, sections 35 and 36, 
 12.21  is amended to read: 
 12.22     168.27 [MOTOR VEHICLE DEALERS; VIOLATIONS, PENALTIES.] 
 12.23     Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
 12.24  section, the following terms in paragraphs (b) to (o) have the 
 12.25  meanings given them:. 
 12.26     (1) (b) "Leasing motor vehicles" means furnishing a motor 
 12.27  vehicle for a fee under a bailor-bailee relationship where no 
 12.28  incidences of ownership are intended to be transferred other 
 12.29  than the right to use the vehicle for a stated period of time. 
 12.30     (2) (c) "Brokering motor vehicles" means arranging sales or 
 12.31  leases between buyers and sellers, or lessees and lessors, of 
 12.32  motor vehicles and receiving a fee for those services. 
 12.33     (3) (d) "Wholesaling motor vehicles" means selling new or 
 12.34  used motor vehicles to dealers for resale to the public. 
 12.35     (4) (e) "Auctioning motor vehicles" means arranging for and 
 12.36  handling the sale of motor vehicles, not the property of the 
 13.1   auctioneer, to the highest bidder. 
 13.2      (5) (f) "Dealer" includes licensed new motor vehicle 
 13.3   dealers, used motor vehicle dealers, motor vehicle brokers, 
 13.4   wholesalers, auctioneers, lessors of new or used motor vehicles, 
 13.5   scrap metal processors, used vehicle parts dealers, and salvage 
 13.6   pools. 
 13.7      (6) (g) "Commercial building" means a permanent, enclosed 
 13.8   building that is on a permanent foundation and connected to 
 13.9   local sewer and water facilities or otherwise complying with 
 13.10  local sanitary codes, is adapted to commercial use, and conforms 
 13.11  to local government zoning requirements.  "Commercial building" 
 13.12  may include strip office malls or garages if a separate entrance 
 13.13  and a separate address are maintained and the dealership is 
 13.14  clearly identified as a separate business. 
 13.15     (7) (h) "Commercial office space" means office space 
 13.16  occupying all or part of a commercial building. 
 13.17     (8) (i) "Horse trailer" is a trailer designed and used to 
 13.18  carry horses and other livestock, which has not more than three 
 13.19  axles and a maximum gross weight capacity of not more than 
 13.20  24,000 pounds. 
 13.21     (9) (j) "Used motor vehicle" means a motor vehicle for 
 13.22  which title has been transferred from the person who first 
 13.23  acquired it from the manufacturer, distributor, or dealer.  A 
 13.24  new motor vehicle will not be considered a used motor vehicle 
 13.25  until it has been placed in actual operation and not held for 
 13.26  resale by an owner who has been granted a certificate of title 
 13.27  on the motor vehicle and has registered the motor vehicle in 
 13.28  accordance with this chapter and chapters 168A and 297B, or the 
 13.29  laws of the residence of the owner.  
 13.30     (10) (k) "New motor vehicle" means a motor vehicle other 
 13.31  than described in paragraph (9) (j).  
 13.32     (11) (l) "Junked vehicle" means a vehicle that is declared 
 13.33  unrepairable under section 168A.151. 
 13.34     (12) (m) "Motor vehicle" has the meaning given it in 
 13.35  section 168.011, subdivision 4, and also includes a park trailer 
 13.36  as defined in section 168.011, subdivision 8. 
 14.1      (13) (n) "Motor vehicle broker" means a person who arranges 
 14.2   the sale of a motor vehicle between a buyer and a seller, or the 
 14.3   lease of a motor vehicle between a lessee and a lessor, for 
 14.4   which service the broker receives a fee. 
 14.5      (o) "Registration year" means the 12-month period for which 
 14.6   a dealer license is issued. 
 14.7      Subd. 1a.  [DEALER LICENSE CATEGORIES.] (a) No person shall 
 14.8   engage in the business of selling new motor vehicles or shall 
 14.9   offer to sell, solicit, deliver, or advertise the sale of new 
 14.10  motor vehicles without first acquiring a new motor vehicle 
 14.11  dealer license. 
 14.12     (b) No person shall engage in the business of selling used 
 14.13  motor vehicles or shall offer to sell, solicit, deliver, or 
 14.14  advertise the sale of used motor vehicles without first 
 14.15  acquiring a used motor vehicle dealer license. 
 14.16     (c) No person shall engage in the business of buying or 
 14.17  otherwise acquiring vehicles other than hulks; or offering to 
 14.18  buy or otherwise acquire, or soliciting or advertising the 
 14.19  buying or acquiring of, vehicles other than hulks for processing 
 14.20  and selling the metal for remelting without first acquiring a 
 14.21  scrap metal processor license. 
 14.22     For purposes of this paragraph, a "hulk" is a motor vehicle 
 14.23  that is incapable, under its own power, of moving and is 
 14.24  incapable of transporting persons or property and has had 
 14.25  valuable used parts removed.  Its sole value is its metallic 
 14.26  content. 
 14.27     (d) No person shall be primarily engaged in the business of 
 14.28  buying or otherwise acquiring vehicles for the purpose of 
 14.29  dismantling the vehicles and selling used parts and the 
 14.30  remaining scrap metals without first acquiring a used vehicle 
 14.31  parts dealer license. 
 14.32     (e) No person shall engage in the business of storing and 
 14.33  displaying, offering to store or display, or soliciting or 
 14.34  advertising the storing or displaying, for sale, of damaged or 
 14.35  junked vehicles as an agent or escrow agent of an insurance 
 14.36  company without first acquiring a vehicle salvage pool license. 
 15.1      (f) No person shall engage in the business of leasing motor 
 15.2   vehicles or shall offer to lease, solicit or advertise to lease 
 15.3   motor vehicles without first acquiring a motor vehicle lessor 
 15.4   license. 
 15.5      (g) No person shall engage in the business of wholesaling 
 15.6   motor vehicles to dealers for resale or shall offer to sell, 
 15.7   solicit or advertise the sale of motor vehicles to dealers for 
 15.8   resale without first acquiring a motor vehicle wholesaler 
 15.9   license. 
 15.10     (h) No person shall engage in the business of auctioning 
 15.11  motor vehicles for more than one owner at an auction or shall 
 15.12  offer to sell, solicit or advertise the sale of motor vehicles 
 15.13  at auction without first acquiring a motor vehicle auctioneer 
 15.14  license. 
 15.15     (i) No person shall engage in the business of brokering 
 15.16  motor vehicles without first acquiring a motor vehicle broker's 
 15.17  license. 
 15.18     Subd. 2.  [NEW MOTOR VEHICLE DEALER.] (a) No person shall 
 15.19  engage in the business of selling new motor vehicles or shall 
 15.20  offer to sell, solicit, deliver, or advertise the sale of new 
 15.21  motor vehicles without first acquiring a new motor vehicle 
 15.22  dealer license.  A new motor vehicle dealer licensee shall be 
 15.23  entitled thereunder to may sell, broker, wholesale, or auction 
 15.24  and to solicit and advertise the sale, broker brokerage, 
 15.25  wholesale, or auction of new motor vehicles covered by the 
 15.26  franchise and any used motor vehicles or to, and may lease and 
 15.27  to solicit and advertise the lease of new motor vehicles and any 
 15.28  used motor vehicles and such.  New motor vehicle dealer sales or 
 15.29  leases may be either for consumer use at retail or for resale to 
 15.30  a dealer.  A new motor vehicle dealer may engage in the business 
 15.31  of buying or otherwise acquiring vehicles for dismantling the 
 15.32  vehicles and selling used parts and remaining scrap materials 
 15.33  under chapter 168A, except that a new motor vehicle dealer may 
 15.34  not purchase a junked vehicle from a salvage pool, insurance 
 15.35  company, or its agent unless the dealer is also licensed as a 
 15.36  used vehicle parts dealer.  Nothing herein shall be construed to 
 16.1   require in this subdivision requires an applicant for a dealer 
 16.2   license who proposes to deal in:  (1) new and unused motor 
 16.3   vehicle bodies; or (2) type A, B, or C motor homes as defined in 
 16.4   section 168.011, subdivision 25, to have a bona fide contract or 
 16.5   franchise in effect with either the first-stage manufacturer of 
 16.6   the motor home or the manufacturer or distributor of any motor 
 16.7   vehicle chassis upon which the new and unused motor vehicle body 
 16.8   is mounted.  The modification or conversion of a new van-type 
 16.9   vehicle into a multipurpose passenger vehicle which is not a 
 16.10  motor home does not constitute dealing in new or unused motor 
 16.11  vehicle bodies, and a person engaged in the business of selling 
 16.12  these van-type vehicles must have a bona fide contract or 
 16.13  franchise with the appropriate manufacturer under subdivision 
 16.14  10.  A van converter or modifier who owns these modified or 
 16.15  converted van-type vehicles may sell them at wholesale to new 
 16.16  motor vehicle dealers having a bona fide contract or franchise 
 16.17  with the first-stage manufacturer of the vehicles. 
 16.18     (b) The requirements pertaining to franchises do not apply 
 16.19  to persons who remodel or convert motor vehicles for medical 
 16.20  purposes.  For purposes of this subdivision, "medical purpose" 
 16.21  means certification by a licensed physician that remodeling or 
 16.22  conversion of a motor vehicle is necessary to enable a disabled 
 16.23  person to use the vehicle. 
 16.24     (c) A new motor vehicle dealer shall not deliver a 
 16.25  manufacturer's or importer's certificate of origin for a 
 16.26  passenger automobile, pickup truck, or van requiring a 
 16.27  certificate of title pursuant according to chapter 168A to any 
 16.28  person in conjunction with the sale of a vehicle except to the 
 16.29  department, another new motor vehicle dealer licensed to sell 
 16.30  the same line or make, or a person whose primary business is 
 16.31  picking up and delivering motor vehicle title documents. 
 16.32     (d) If a new motor vehicle dealer agrees to sell or lease a 
 16.33  new motor vehicle using the services of a motor vehicle broker, 
 16.34  the new motor vehicle dealer may not refuse to deliver 
 16.35  possession of the vehicle to the buyer or lessee.  This 
 16.36  paragraph does not require delivery unless all arrangements have 
 17.1   been properly completed for payment, insurance required by law, 
 17.2   titling, transfer, and registration of the new vehicle and any 
 17.3   trade-in vehicle.  Delivery may take place at or away from the 
 17.4   dealership. 
 17.5      Subd. 3.  [USED MOTOR VEHICLE DEALER.] No person shall 
 17.6   engage in the business of selling or arranging the sale of used 
 17.7   motor vehicles or shall offer to sell, solicit, arrange, or 
 17.8   advertise the sale of used motor vehicles without first 
 17.9   acquiring a used motor vehicle dealer license.  A used motor 
 17.10  vehicle dealer licensee shall be entitled thereunder to may 
 17.11  sell, lease, broker, wholesale, or auction and to solicit and 
 17.12  advertise the sale, lease, broker brokerage, wholesale, or 
 17.13  auction of any used motor vehicles for consumer use at retail or 
 17.14  for resale to a dealer.  A used motor vehicle dealer may engage 
 17.15  in the business of buying or otherwise acquiring vehicles for 
 17.16  dismantling the vehicles and selling used parts and remaining 
 17.17  scrap materials under chapter 168A, except that a used motor 
 17.18  vehicle dealer may not acquire a junked vehicle from a salvage 
 17.19  pool, insurance company, or its agent, unless the dealer is also 
 17.20  licensed as a used vehicle parts dealer. 
 17.21     Subd. 3a.  [SCRAP METAL PROCESSOR.] (a) A person must have 
 17.22  a scrap metal processor license to engage in the business of: 
 17.23     (1) buying or otherwise acquiring vehicles other than 
 17.24  hulks; or 
 17.25     (2) offering to buy or otherwise acquire, or soliciting or 
 17.26  advertising the buying or acquiring of, vehicles other than 
 17.27  hulks for processing and selling the metal for remelting.  For 
 17.28  purposes of this subdivision, a "hulk" is a motor vehicle that 
 17.29  is incapable, under its own power, of moving and is incapable of 
 17.30  transporting persons or property and has had any valuable used 
 17.31  parts removed.  Its sole value is its metallic content. 
 17.32     (b) A scrap metal processor licensee is entitled to may buy 
 17.33  or otherwise acquire vehicles and to solicit and advertise the 
 17.34  buying or acquiring of vehicles for processing and selling the 
 17.35  metal for remelting.  A scrap metal processor licensee may not 
 17.36  acquire a junked vehicle for the purpose of dismantling and 
 18.1   selling used vehicle parts and remaining scrap materials unless 
 18.2   the scrap metal processor is also licensed as a used vehicle 
 18.3   parts dealer. 
 18.4      Subd. 3b.  [USED VEHICLE PARTS DEALER.] A person must have 
 18.5   a used vehicle parts dealer's license to be primarily engaged in 
 18.6   the business of buying or otherwise acquiring vehicles for the 
 18.7   purpose of dismantling the vehicles and selling used parts and 
 18.8   the remaining scrap metals. 
 18.9      Subd. 3c.  [VEHICLE SALVAGE POOL.] A person must have a 
 18.10  vehicle salvage pool license to engage in the business of:  
 18.11  storing and displaying, offering to store or display, or 
 18.12  soliciting or advertising the storing or displaying, for sale, 
 18.13  of damaged or junked vehicles as an agent or escrow agent of an 
 18.14  insurance company.  A vehicle salvage pool licensee is entitled 
 18.15  to may store and display and to may solicit and advertise the 
 18.16  storing and displaying, for sale, of damaged or junked vehicles 
 18.17  as an agent or escrow agent of an insurance company.  A vehicle 
 18.18  salvage pool licensee shall not sell junked vehicles to any 
 18.19  party other than a licensed used parts dealer. 
 18.20     Subd. 4.  [MOTOR VEHICLE LESSOR.] No person shall engage in 
 18.21  the business of leasing motor vehicles or shall offer to lease, 
 18.22  solicit or advertise to lease motor vehicles without first 
 18.23  acquiring a motor vehicle lessor license.  A motor vehicle 
 18.24  lessor licensee shall be entitled thereunder to may lease or 
 18.25  rent either by the hour, day or longer period for a fee and to 
 18.26  may solicit and advertise the lease or rental of motor 
 18.27  vehicles.  A motor vehicle lessor having leased motor vehicles, 
 18.28  may sell the vehicles upon their return to the lessor after 
 18.29  termination or expiration of the lease without obtaining a used 
 18.30  motor vehicle dealer license. 
 18.31     Subd. 4a.  [LIMITED USED VEHICLE LICENSE.] A limited used 
 18.32  vehicle license shall be provided to a nonprofit charitable 
 18.33  organization that qualifies for tax exemption under section 
 18.34  501(c)(3) of the Internal Revenue Code whose primary business in 
 18.35  the transfer of vehicles is to raise funds for the corporation, 
 18.36  who acquires vehicles for sale through donation, and who uses a 
 19.1   licensed motor vehicle auctioneer to sell vehicles to retail 
 19.2   customers.  This license does not apply to educational 
 19.3   institutions whose primary purpose is to train students in the 
 19.4   repair, maintenance, and sale of motor vehicles.  A limited used 
 19.5   vehicle license allows the organization to accept assignment of 
 19.6   vehicles without the requirement to transfer title as provided 
 19.7   in section 168A.10 until sold to a retail customer.  Limited 
 19.8   used vehicle license holders are not entitled to dealer plates, 
 19.9   and shall report all vehicles held for resale to the department 
 19.10  of public safety in a manner and time prescribed by the 
 19.11  department. 
 19.12     Subd. 5a.  [CONSIGNMENT SALES.] No person may solicit, 
 19.13  accept, offer for sale, or sell motor vehicles for consignment 
 19.14  sale unless licensed as a new or used motor vehicle dealer, a 
 19.15  motor vehicle wholesaler, or a motor vehicle auctioneer.  This 
 19.16  requirement does not apply to a licensed auctioneer selling 
 19.17  motor vehicles at an auction if, in the ordinary course of the 
 19.18  auctioneer's business, the sale of motor vehicles is incidental 
 19.19  to the sale of other real or personal property.  Incidental 
 19.20  means up to a total of ten but no more than ten percent of the 
 19.21  items in the posted auction bill are motor vehicles.  
 19.22     Subd. 6.  [MOTOR VEHICLE WHOLESALER.] No person shall 
 19.23  engage in the business of wholesaling motor vehicles to dealers 
 19.24  for resale or shall offer to sell, solicit or advertise the sale 
 19.25  of motor vehicles to dealers for resale without first acquiring 
 19.26  a motor vehicle wholesaler license.  A motor vehicle wholesaler 
 19.27  licensee shall be entitled thereunder to may sell, solicit or 
 19.28  advertise the sale of motor vehicles at wholesale for resale; 
 19.29  provided that a wholesaler may sell, solicit, or advertise the 
 19.30  sale of new motor vehicles only to dealers duly licensed to sell 
 19.31  the same make of motor vehicles. 
 19.32     Subd. 7.  [MOTOR VEHICLE AUCTIONEER.] No person shall 
 19.33  engage in the business of auctioning motor vehicles for more 
 19.34  than one owner at an auction or shall offer to sell, solicit or 
 19.35  advertise the sale of motor vehicles at auction without first 
 19.36  acquiring a motor vehicle auctioneer license.  A motor vehicle 
 20.1   auctioneer licensee shall be entitled thereunder to may sell, 
 20.2   solicit and advertise the sale of used motor vehicles belonging 
 20.3   to others at auction. 
 20.4      Subd. 7a.  [MOTOR VEHICLE BROKER.] (a) No person shall 
 20.5   engage in the business of brokering motor vehicles without first 
 20.6   acquiring a motor vehicle broker's license.  A motor vehicle 
 20.7   broker shall provide each buyer or lessee with a written 
 20.8   disclosure stating whether the motor vehicle broker receives a 
 20.9   fee from the dealers with whom the broker does business.  The 
 20.10  new or used motor vehicle dealer shall be is the seller of 
 20.11  record in all such transactions.  The motor vehicle dealer may 
 20.12  pay the motor vehicle broker a fee for brokering services 
 20.13  rendered.  A motor vehicle broker may: 
 20.14     (1) advertise and solicit the brokering of new motor 
 20.15  vehicles.  A motor vehicle broker shall not advertise or make 
 20.16  any representations which state, imply, or suggest that the 
 20.17  motor vehicle broker itself sells vehicles, is authorized to 
 20.18  sell vehicles, or obtains vehicles directly from the motor 
 20.19  vehicle manufacturer.  All advertising or other solicitations by 
 20.20  a motor vehicle broker shall disclose that sales of new motor 
 20.21  vehicles are arranged through franchised motor vehicle dealers; 
 20.22     (2) negotiate or quote the sale price or lease terms of 
 20.23  motor vehicles; 
 20.24     (3) prepare and deliver documents necessary to the 
 20.25  transaction; 
 20.26     (4) accept a down payment not to exceed $500, but otherwise 
 20.27  may not accept payment in full or in part for a motor vehicle 
 20.28  unless the payment is in the form of a negotiable instrument 
 20.29  payable to the vehicle dealer; 
 20.30     (5) accompany a motor vehicle purchaser or lessee at the 
 20.31  time of delivery by the selling dealer of a new motor vehicle; 
 20.32  and 
 20.33     (6) be present when warranties and safety features are 
 20.34  described by the selling dealer in conjunction with the delivery 
 20.35  of a new motor vehicle. 
 20.36     (b) A motor vehicle broker shall not: 
 21.1      (1) engage in the business of selling new or used motor 
 21.2   vehicles as described in subdivisions 2 and 3; 
 21.3      (2) execute contracts or official documents for the sale or 
 21.4   lease of a new motor vehicle; 
 21.5      (3) describe a new vehicle's warranties or safety features 
 21.6   in conjunction with the delivery of a new motor vehicle; 
 21.7      (4) display motor vehicles available for sale or lease; or 
 21.8      (5) perform any dealer preparation of new motor vehicles. 
 21.9   All dealer preparation shall be performed only by a licensed new 
 21.10  motor vehicle dealer. 
 21.11     (c) This subdivision does not apply to licensed motor 
 21.12  vehicle lessors and shall not be construed to restrict licensed 
 21.13  motor vehicle lessors from brokering motor vehicle leases or 
 21.14  otherwise engaging in the leasing of motor vehicles in 
 21.15  accordance with subdivisions 1 and 4. 
 21.16     Subd. 8.  [EXEMPTIONS.] (a) Salespeople and other employees 
 21.17  of licensed dealers under this section are not required to 
 21.18  obtain individual licenses. 
 21.19     (b) Isolated or occasional sales or leases of new or used 
 21.20  motor vehicles are exempt from this section.  A person who makes 
 21.21  only isolated or occasional sales or leases is not required to 
 21.22  be licensed under this section, is not considered to be in the 
 21.23  business of selling or leasing motor vehicles, and does not 
 21.24  qualify to receive dealer plates under subdivision 16.  
 21.25  "Isolated or occasional sales or leases" means:  (1) the sale or 
 21.26  lease of a motor vehicle with an actual cash value of $1,000 or 
 21.27  less made by a charitable organization; (2) the sale, purchase, 
 21.28  or lease of not more than five motor vehicles in a 12-month 
 21.29  period, other than pioneer or classic motor vehicles as defined 
 21.30  in section 168.10, subdivisions 1a and 1b, or (3) sales by a 
 21.31  licensed auctioneer selling motor vehicles at an auction if, in 
 21.32  the ordinary course of the auctioneer's business, the sale of 
 21.33  motor vehicles is incidental to the sale of other real or 
 21.34  personal property.  For purposes of this subdivision, charitable 
 21.35  organization means a nonprofit charitable organization that 
 21.36  qualifies for tax exemption under section 501(c)(3) of the 
 22.1   Internal Revenue Code. 
 22.2      (c) A person whose sales of new and used motor vehicles 
 22.3   consist solely of sales to political subdivisions and their 
 22.4   agencies of vehicles used solely as firefighting equipment is 
 22.5   not required to obtain a license under this section.  The person 
 22.6   may apply for and receive in-transit plates under subdivision 17 
 22.7   in the same manner as licensed motor vehicle dealers for the 
 22.8   purpose of allowing firefighting equipment to be transported 
 22.9   from the dealer's source of supply or other place of storage to 
 22.10  the dealer's place of business, to another place of storage, or 
 22.11  directly to the purchaser. 
 22.12     Subd. 9.  [APPLICATION.] Application for such license and 
 22.13  renewal thereof shall All license applications under this 
 22.14  section and all license renewals must be made to the registrar 
 22.15  of motor vehicles, shall be in writing, and duly verified by 
 22.16  oath.  The applicant shall submit such information as the 
 22.17  registrar may require to administer this section, on blanks 
 22.18  provided by the registrar for such purpose in a manner and 
 22.19  format prescribed by the registrar. 
 22.20     Subd. 10.  [PLACE OF BUSINESS.] (a) All licensees under 
 22.21  this section shall have an established place of business which 
 22.22  shall include as a minimum: 
 22.23     (1) For a new motor vehicle dealer, the following: 
 22.24     (i) a commercial building owned or under lease by the 
 22.25  licensee.  The lease shall must be for a minimum term of one 
 22.26  year.  The building shall must contain office space where the 
 22.27  books, records, and files necessary to conduct the business are 
 22.28  kept and maintained with personnel available during normal 
 22.29  business hours.  Dealership business hours must be conspicuously 
 22.30  posted on the place of doing business and readily viewable by 
 22.31  the public; 
 22.32     (ii) a bona fide contract or franchise (1) in effect with a 
 22.33  manufacturer or distributor of the new motor vehicles the dealer 
 22.34  proposes to sell, broker, wholesale, or auction, or (2) in 
 22.35  effect with the first-stage manufacturer or distributor of new 
 22.36  motor vehicles purchased from a van converter or modifier which 
 23.1   the dealer proposes to sell, broker, wholesale, or auction, or 
 23.2   (3) in effect with the final stage manufacturer of the new type 
 23.3   A, B, or C motor homes which the dealer proposes to sell, 
 23.4   broker, wholesale, or auction; 
 23.5      (iii) a facility for the repair and servicing of motor 
 23.6   vehicles and the storage of parts and accessories, not to exceed 
 23.7   ten miles distance from the principal place of business.  Such 
 23.8   The service may be provided through contract with bona fide 
 23.9   operators actually engaged in such the services; 
 23.10     (iv) an area either indoors or outdoors to display motor 
 23.11  vehicles which that is owned or under lease by the licensee; and 
 23.12     (v) a sign readily viewable by the public that 
 23.13  clearly identifying identifies the dealership by name which is 
 23.14  readily viewable by the public. 
 23.15     (2) For a used motor vehicle dealer, the following: 
 23.16     (i) a commercial building owned or under lease by the 
 23.17  licensee.  The lease shall must be for a minimum term of one 
 23.18  year.  The building shall must contain office space where the 
 23.19  books, records, and files necessary to conduct the business are 
 23.20  kept and maintained with personnel available during normal 
 23.21  business hours or automatic telephone answering service during 
 23.22  normal business hours.  Dealership business hours must be 
 23.23  conspicuously posted on the place of doing business and readily 
 23.24  viewable by the public; 
 23.25     (ii) an area either indoors or outdoors to display motor 
 23.26  vehicles which is owned or under lease by the licensee; and 
 23.27     (iii) a sign readily viewable by the public that 
 23.28  clearly identifying identifies the dealership by name which is 
 23.29  readily viewable by the public. 
 23.30     (3) For a motor vehicle lessor, the following:  a 
 23.31  commercial office space where the books, records, and files 
 23.32  necessary to conduct the business are kept and maintained with 
 23.33  personnel available during normal business hours or an automatic 
 23.34  telephone answering service during normal business hours.  
 23.35  Business hours must be conspicuously posted on the place of 
 23.36  doing business and readily viewable by the public.  The office 
 24.1   space must be owned or under lease for a minimum term of one 
 24.2   year by the licensee. 
 24.3      (4) For a motor vehicle wholesaler, the following:  a 
 24.4   commercial office space where the books, records, and files 
 24.5   necessary to conduct the business are kept and maintained with 
 24.6   personnel available during normal business hours or an automatic 
 24.7   telephone answering service during normal business hours.  The 
 24.8   office space must be owned or under lease for a minimum term of 
 24.9   one year by the licensee. 
 24.10     (5) For a motor vehicle auctioneer, the following:  a 
 24.11  permanent enclosed commercial building, within or without the 
 24.12  state, on a permanent foundation, owned or under lease by the 
 24.13  licensee.  The lease shall must be for a minimum term of one 
 24.14  year.  The building shall must contain office space where the 
 24.15  books, records, and files necessary to conduct the business are 
 24.16  kept and maintained with personnel available during normal 
 24.17  business hours or an automatic telephone answering service 
 24.18  during normal business hours.  
 24.19     (6) For a motor vehicle broker, the following:  a 
 24.20  commercial office space where books, records, and files 
 24.21  necessary to conduct business are kept and maintained with 
 24.22  personnel available during normal business hours, or an 
 24.23  automatic telephone answering service available during normal 
 24.24  business hours.  A sign, clearly identifying the motor vehicle 
 24.25  broker by name and listing the broker's business hours, must be 
 24.26  posted in a location and manner readily viewable by a member of 
 24.27  the public visiting the office space.  The office space must be 
 24.28  owned or under lease for a minimum term of one year by the 
 24.29  licensee. 
 24.30     (b) If a new or used motor vehicle dealer maintains more 
 24.31  than one place of doing business in a county, the separate 
 24.32  places shall must be listed on the application.  If additional 
 24.33  places of business are maintained outside of one county, 
 24.34  separate licenses shall must be obtained for each county. 
 24.35     (c) If a motor vehicle lessor, wholesaler, auctioneer, or 
 24.36  motor vehicle broker maintains more than one permanent place of 
 25.1   doing business, either in one or more counties, the separate 
 25.2   places shall must be listed in the application, but only one 
 25.3   license shall be is required.  If a lessor proposes to sell 
 25.4   previously leased or rented vehicles or if a broker proposes to 
 25.5   establish an office at a location outside the seven-county 
 25.6   metropolitan area, as defined in section 473.121, subdivision 2, 
 25.7   other than cities of the first class, the lessor or broker must 
 25.8   obtain a license for each nonmetropolitan area county in which 
 25.9   the lessor's sales are to take place or where the broker 
 25.10  proposes to locate an office. 
 25.11     (d) If a motor vehicle dealer, lessor, wholesaler, or motor 
 25.12  vehicle broker does not have direct access to a public road or 
 25.13  street, any privately owned roadway providing access to a public 
 25.14  road or street must be clearly identified and adequately 
 25.15  maintained. 
 25.16     (e) A new or used motor vehicle dealer may establish a 
 25.17  temporary place of business outside the county where it 
 25.18  maintains its licensed location to sell horse trailers 
 25.19  exclusively without obtaining an additional license.  
 25.20     (f) A new or used motor vehicle dealer may establish a 
 25.21  temporary place of business outside the county where it 
 25.22  maintains its licensed location to sell recreational equipment 
 25.23  exclusively without obtaining an additional license if: 
 25.24     (1) the dealer establishes a temporary place of business 
 25.25  for the sale of recreational equipment not more than four times 
 25.26  during any calendar year; 
 25.27     (2) each temporary place of business other than an official 
 25.28  county fair or the Minnesota state fair within the seven-county 
 25.29  metropolitan area, as defined in section 473.121, subdivision 2, 
 25.30  is established jointly with at least four other recreational 
 25.31  equipment dealers; 
 25.32     (3) each temporary place of business other than an official 
 25.33  county fair outside the seven-county metropolitan area, as 
 25.34  defined in section 473.121, subdivision 2, is established 
 25.35  jointly with at least one other recreational equipment dealer; 
 25.36     (4) each establishment of a temporary place of business for 
 26.1   the sale of recreational equipment is for no more than 12 
 26.2   consecutive days; and 
 26.3      (5) the dealer notifies the registrar of motor vehicles of 
 26.4   each temporary place of business for the sale of recreational 
 26.5   equipment. 
 26.6      Subd. 11.  [LICENSES; FEE.] Application for license or 
 26.7   notification of a change of location of a license must include a 
 26.8   street address, not a post office box, and is subject to the 
 26.9   registrar's approval.  Upon the filing of an application for a 
 26.10  license and the proper fee, the registrar is authorized, unless 
 26.11  the application on its face appears to be invalid, to grant a 
 26.12  90-day temporary license and.  During said the 90-day 
 26.13  period following issuance of temporary license, the registrar 
 26.14  shall investigate the fitness of the applicant, inspect the site 
 26.15  and make such other investigation as is necessary to insure 
 26.16  compliance with the licensing law.  The registrar may extend the 
 26.17  temporary license 30 days.  At the end of the period of 
 26.18  investigation the license shall must either be granted or 
 26.19  denied.  The license must be denied if within the previous ten 
 26.20  years the applicant was enjoined due to a violation of section 
 26.21  325F.69 or convicted of violating section 325E.14, 325E.15, 
 26.22  325E.16, or 325F.69, or convicted under section 609.53 of 
 26.23  receiving or selling stolen vehicles, or convicted of violating 
 26.24  United States Code, title 15, sections 1981 to 1991, as amended 
 26.25  through December 31, 1984, or pleaded guilty, entered a plea of 
 26.26  nolo contendere or no contest, or has been found guilty in a 
 26.27  court of competent jurisdiction of any charge of failure to pay 
 26.28  state or federal income or sales taxes or felony charge of 
 26.29  forgery, embezzlement, obtaining money under false pretenses, 
 26.30  theft by swindle, extortion, conspiracy to defraud, or bribery.  
 26.31  The license must also be denied if within the previous year the 
 26.32  applicant has been denied a license.  A license must also be 
 26.33  denied if the applicant has had a dealer license revoked within 
 26.34  the previous ten years.  If the application is approved, the 
 26.35  registrar shall license the applicant as a motor vehicle dealer 
 26.36  for the remainder of the calendar year, one year from the date 
 27.1   the temporary license is granted and issue a certificate of 
 27.2   license therefor as the registrar may provide upon which shall 
 27.3   be placed that must include a distinguishing number of 
 27.4   identification of such the dealer.  The license must be 
 27.5   displayed in a prominent place in the licensed location.  Each 
 27.6   initial application for a license shall must be accompanied by a 
 27.7   fee of $50 in addition to the annual fee.  The annual fee shall 
 27.8   be $100.  All initial fees and annual fees shall must be paid 
 27.9   into the state treasury and credited to the general fund.  If 
 27.10  the initial application is received by the registrar after July 
 27.11  1 of any year, the first annual fee shall be reduced by one-half.
 27.12     Subd. 12.  [GROUNDS FOR SUSPENSION AND REVOCATION.] (a) A 
 27.13  license may be suspended or revoked by the registrar of motor 
 27.14  vehicles upon proof satisfactory to the registrar of any of the 
 27.15  following: 
 27.16     (1) violations of any of the provisions of this chapter or 
 27.17  chapter 168A, 297B, 325E, or 325F; 
 27.18     (2) violation of or refusal to comply with the requests and 
 27.19  order of the registrar; 
 27.20     (3) failure to make or provide to the registrar all 
 27.21  listings, notices, and reports required by the registrar; 
 27.22     (4) failure to pay to the registrar all taxes, fees, and 
 27.23  arrears due from and by such dealer; 
 27.24     (5) failure to duly apply for renewal of license provided 
 27.25  for herein in this section; 
 27.26     (6) revocation of previous license, of which the records of 
 27.27  the registrar relating thereto shall be to the revocation are 
 27.28  prima facie evidence of such the previous revocation; 
 27.29     (7) failure of continued occupancy of an established place 
 27.30  of business; 
 27.31     (8) sale of a new and unused current model motor vehicle 
 27.32  other than the make of motor vehicle described in the franchise 
 27.33  or contract filed with the original application or renewal 
 27.34  thereof, without permission from the registrar; 
 27.35     (9) sale of a new and unused current model motor vehicle to 
 27.36  anyone except for consumer use, or to a dealer duly licensed to 
 28.1   sell the same make of motor vehicle; 
 28.2      (10) material misstatement or misrepresentation in 
 28.3   application for license or renewal thereof; 
 28.4      (11) having advertised, printed, displayed, published, 
 28.5   distributed, broadcast or televised or caused or permitted to be 
 28.6   advertised, printed, displayed, published, distributed, 
 28.7   broadcast or televised in any manner whatsoever, or having made 
 28.8   orally any statement or representation with regard to the sale, 
 28.9   lease or financing of motor vehicles which that is false, 
 28.10  deceptive or misleading; 
 28.11     (12) having been convicted of violating section 325F.69, or 
 28.12  having been enjoined due to a violation of section 325F.69; 
 28.13     (13) having been convicted of violating the Minnesota 
 28.14  Odometer Law, section 325E.14, 325E.15, or 325E.16, or the 
 28.15  federal odometer law, United States Code, title 15, sections 
 28.16  1981 to 1991, as amended through December 31, 1984; 
 28.17     (14) having been convicted of violating the sale of motor 
 28.18  vehicles on Sunday law, section 168.275; 
 28.19     (15) having been convicted under section 609.53 of 
 28.20  receiving or selling stolen vehicles; or 
 28.21     (16) having pleaded guilty, entered a plea of nolo 
 28.22  contendere or no contest, or having been found guilty in a court 
 28.23  of competent jurisdiction of any charge of failure to pay state 
 28.24  or federal income or sales taxes or felony charge of forgery, 
 28.25  embezzlement, obtaining money under false pretenses, theft by 
 28.26  swindle, extortion, conspiracy to defraud, or bribery.  
 28.27     (b) With respect to paragraph (a), clauses (12), (13), 
 28.28  (15), and (16), the registrar may suspend or revoke a license 
 28.29  immediately upon receiving certification of conviction or 
 28.30  permanent injunction.  A hearing is required under subdivision 
 28.31  13 within 30 days following a summary suspension or revocation 
 28.32  under this paragraph, if a hearing is requested by the licensee. 
 28.33     Subd. 12a.  [GROUNDS FOR CANCELLATION; NOTICE REQUIRED.] 
 28.34  (a) A license may be canceled by the registrar after notice to 
 28.35  the dealer, upon satisfactory proof that the dealer (1) has 
 28.36  failed to provide or maintain the required surety bond, (2) has 
 29.1   failed to provide or maintain the insurance required under 
 29.2   chapter 65B, or (3) is no longer operating at the dealer's 
 29.3   licensed location. 
 29.4      (b) Surety companies and insurers providing required 
 29.5   coverages shall promptly notify the registrar upon canceling any 
 29.6   surety bond or required insurance.  The registrar shall notify 
 29.7   the dealer of the reason or reasons for cancellation before the 
 29.8   cancellation occurs. 
 29.9      Subd. 13.  [SUSPENSION AND REVOCATION; HEARING.] (a) The 
 29.10  registrar of motor vehicles, upon the registrar's own motion or 
 29.11  upon the complaint of another, shall prepare and cause to be 
 29.12  served upon the licensee complained of, a written notice or 
 29.13  complaint setting forth, in substance, the violations charged, a 
 29.14  statement of the deficiencies which exist and any corrective 
 29.15  action deemed appropriate.  Said The notice shall must include a 
 29.16  statement that in the event corrective action is deemed 
 29.17  appropriate and corrective action is not taken, the dealer's 
 29.18  license may be suspended or revoked.  The notice shall must 
 29.19  require the licensee to appear at the time and place 
 29.20  fixed therein in the notice before the registrar, and show cause 
 29.21  why the license should not be suspended or revoked. 
 29.22     (b) The registrar shall, at the time and place fixed in the 
 29.23  notice, proceed to hear and determine the matter on its merits.  
 29.24  All hearings shall must be conducted in accordance with the 
 29.25  provisions of according to chapter 14, except that the 
 29.26  provisions of section 14.50, shall do not apply.  The registrar 
 29.27  is authorized to may subpoena witnesses and administer oaths.  
 29.28  If the registrar shall find finds the existence of any of the 
 29.29  causes for suspension or revocation as set forth in subdivision 
 29.30  12 and determine determines that corrective action has not been 
 29.31  taken or that corrective action will not prevent repetition of 
 29.32  the violations charged or that the public interest will not be 
 29.33  served by corrective action and the licensee's license should be 
 29.34  suspended or revoked, the registrar shall issue a written order 
 29.35  setting out the decision, and.  A copy of such the order shall 
 29.36  must be served upon such the licensee in the manner provided by 
 30.1   law for the service of summons in a civil action.  On finding 
 30.2   that the dealer has violated any of the provisions of this 
 30.3   section but that the nature of said the violation or the 
 30.4   circumstances thereof are such that a suspension of the license 
 30.5   would be adequate, the registrar may, instead of revoking the 
 30.6   license suspend it for a period not exceeding 90 days.  On 
 30.7   finding that the violation does not justify a suspension only, 
 30.8   the registrar shall revoke the license.  Upon a suspension or 
 30.9   revocation, if it be of the license of a new or used motor 
 30.10  vehicle dealer, said the licensee shall immediately return to 
 30.11  the registrar all number plates, including any "in-transit" 
 30.12  plates and temporary permits, in its possession and its dealer's 
 30.13  license certificate. 
 30.14     Subd. 14.  [APPEAL.] Any party or person aggrieved by such 
 30.15  an order of suspension, revocation or imposition of a penalty 
 30.16  may seek judicial review pursuant to the provisions of according 
 30.17  to chapter 14. 
 30.18     Subd. 15.  [ENFORCEMENT.] The registrar is hereby 
 30.19  authorized to shall enforce this section and is directed to may 
 30.20  appoint under the registrar's hand not less than at least seven 
 30.21  persons amongst of the registrar's several employees, as 
 30.22  inspectors and investigators and who when so appointed, shall.  
 30.23  The inspectors and investigators have full authority to enforce 
 30.24  this section throughout the state.  The registrar, the 
 30.25  registrar's inspectors or investigators, when traveling or 
 30.26  otherwise pursuing their duties outside the office of the 
 30.27  registrar, shall be paid for their actual expenses incurred out 
 30.28  of the same funds as other employees of the registrar of motor 
 30.29  vehicles.  The inspectors shall assist licensees in compliance 
 30.30  with laws governing licensees and administered hereunder. 
 30.31     Subd. 16.  [DEALER PLATES:  DISTINGUISHING NUMBER, FEE, 
 30.32  TAX, USE.] (a) The registrar shall issue to every motor vehicle 
 30.33  dealer, upon a request from the motor vehicle dealer licensed as 
 30.34  provided in subdivision 2 or 3, one or more plates displaying a 
 30.35  general distinguishing number.  This subdivision does not apply 
 30.36  to a scrap metal processor, a used vehicle parts dealer, or a 
 31.1   vehicle salvage pool.  The fee for each of the first four plates 
 31.2   is $75 per calendar registration year, of which $60 must be paid 
 31.3   to the registrar and the remaining $15 is payable as sales tax 
 31.4   on motor vehicles under section 297B.035.  For each additional 
 31.5   plate, the dealer shall pay the registrar a fee of $25 and a 
 31.6   sales tax on motor vehicles of $15 per calendar registration 
 31.7   year.  The registrar shall deposit the tax in the state treasury 
 31.8   and it shall to be credited as provided in section 297B.09.  
 31.9   Motor vehicles, new or used, owned by the motor vehicle 
 31.10  dealership and bearing the number plate, except vehicles leased 
 31.11  to the user who is not an employee of the dealer during the term 
 31.12  of the lease, held for hire, or customarily used by the dealer 
 31.13  as a tow truck, service truck, or parts vehicle, may be driven 
 31.14  upon the streets and highways of this state: 
 31.15     (1) by the motor vehicle dealer or dealer's spouse, or any 
 31.16  full-time employee of the motor vehicle dealer for either 
 31.17  private or business purposes; 
 31.18     (2) by a part-time employee when the use is directly 
 31.19  related to a particular business transaction of the dealer; 
 31.20     (3) for demonstration purposes by any prospective buyer 
 31.21  thereof for a period of 48 hours or in the case of a truck, 
 31.22  truck-tractor, or semitrailer, for a period of seven days; or 
 31.23     (4) in a promotional event that lasts no longer than four 
 31.24  days in which at least three motor vehicles are involved. 
 31.25     (b) A new or used motor vehicle sold by the motor vehicle 
 31.26  dealer and bearing the motor vehicle dealer's number plate may 
 31.27  be driven upon the public streets and highways for a period of 
 31.28  72 hours by the buyer for either of the following purposes:  (1) 
 31.29  removing the vehicle from this state for registration in another 
 31.30  state, or (2) permitting the buyer to use the motor vehicle 
 31.31  before the buyer receives number plates pursuant to 
 31.32  registration.  Use of a motor vehicle by the buyer under the 
 31.33  provisions of clause (2) of the preceding sentence before the 
 31.34  buyer receives number plates pursuant to registration 
 31.35  constitutes a use of the public streets or highways for the 
 31.36  purpose of the time requirements for registration of motor 
 32.1   vehicles. 
 32.2      Subd. 17.  [IN-TRANSIT PLATES; FEE.] Every licensed dealer 
 32.3   in motor vehicles may make application upon a blank provided by 
 32.4   the registrar for that purpose for dealer in-transit license 
 32.5   plates for use upon all new or used motor vehicles being 
 32.6   transported from the dealer's source of supply, or other place 
 32.7   of storage, to the dealer's place of business, or to another 
 32.8   place of storage, or from one dealer to another.  The registrar 
 32.9   shall then issue to the dealer the number of plates as the 
 32.10  dealer may request, upon the payment by the dealer to the 
 32.11  registrar of the sum of $5 per plate per calendar registration 
 32.12  year.  The registrar may issue in-transit plates, upon the 
 32.13  payment of the sum of $5 to the registrar, to dealers duly 
 32.14  licensed in other states or provinces upon information furnished 
 32.15  in the manner as the registrar may prescribe, and which 
 32.16  satisfies the registrar that persons or companies applying 
 32.17  therefor for the plates are duly licensed dealers under the laws 
 32.18  of the states or provinces. 
 32.19     Subd. 18.  [TESTIMONIAL POWERS.] The registrar shall have, 
 32.20  and is hereby granted full authority to may issue subpoenas 
 32.21  requiring the attendance of witnesses before the registrar, 
 32.22  production of books, papers, and other documents, articles, or 
 32.23  instruments, and compel the disclosure by such witnesses of all 
 32.24  facts known to them relative to the matter under investigation, 
 32.25  and shall have full authority to may administer oaths and to 
 32.26  take testimony.  All parties disobeying the orders of subpoenas 
 32.27  of the registrar shall be are guilty of contempt, as in 
 32.28  proceedings in district courts of the state and may be punished 
 32.29  in like manner. 
 32.30     Subd. 19.  [VIOLATIONS.] Any person, copartnership, or 
 32.31  corporation, domestic or foreign, and any officer, or director, 
 32.32  or employee of a corporation, domestic or foreign, who shall 
 32.33  violate or neglect, fail or refuse to comply with any of the 
 32.34  provisions of this section shall be violates this section is 
 32.35  guilty of a misdemeanor. 
 32.36     Subd. 19a.  [INJUNCTION.] The commissioner or a county 
 33.1   attorney may institute a civil action in the name of the state 
 33.2   in district court for an injunction prohibiting a violation of 
 33.3   this section and for civil penalties not to exceed $1,000 for 
 33.4   each violation of subdivision 2, 3, 4, 5a, 6, 7, or 7a.  The 
 33.5   court, upon proper proof that the defendant has engaged in a 
 33.6   practice prohibited by this section, may enjoin the future 
 33.7   commission of that practice and award civil penalties for 
 33.8   violations of subdivision 2, 3, 4, 5a, 6, 7, or 7a.  It is not a 
 33.9   defense to an action that the state may have adequate remedies 
 33.10  at law.  Service of process must be as in any other civil suit, 
 33.11  except that where a defendant in the action is a natural person 
 33.12  or firm residing outside the state, or is a foreign corporation, 
 33.13  service of process may also be made by personal service outside 
 33.14  the state; in the manner provided by section 5.25; or as the 
 33.15  court may direct.  Process is valid if it satisfies the 
 33.16  requirements of due process of law, whether or not the defendant 
 33.17  is doing business in Minnesota regularly or habitually.  Nothing 
 33.18  in this subdivision limits the rights or remedies otherwise 
 33.19  available to persons under common law or other statutes of this 
 33.20  state. 
 33.21     Subd. 20.  [APPLICATION TO SALE OF OTHER VEHICLES.] (a) 
 33.22  This section does not apply: 
 33.23     (1) to any person, copartnership, or corporation engaged in 
 33.24  the business of selling vehicles designed to operate exclusively 
 33.25  over snow, motor scooters, motorized wheelchairs, utility 
 33.26  trailers, farm wagons, farm trailers, or farm tractors or other 
 33.27  farm implements, whether self-propelled or not and even though a 
 33.28  vehicle listed in this clause may be equipped with a trailer 
 33.29  hitch; or 
 33.30     (2) to any person licensed as a real estate broker or 
 33.31  salesperson pursuant to chapter 82, who engages in the business 
 33.32  of selling, who offers to sell, or who solicits or advertises 
 33.33  the sale of manufactured homes affixed to land. 
 33.34     (b) However, this section does apply to a person, 
 33.35  copartnership, or corporation described in paragraph (a) who is 
 33.36  also engaged in the business of selling other motor vehicles or 
 34.1   manufactured homes within the provisions of this section. 
 34.2      (c) As used in this subdivision, "utility trailer" means a 
 34.3   motorless vehicle, other than a boat trailer or snowmobile 
 34.4   trailer, equipped with one or two wheels, having a gross vehicle 
 34.5   weight of 4,000 pounds or less, and used for carrying property 
 34.6   on its own structure while being drawn by a motor vehicle. 
 34.7      Subd. 22.  [DEALER LICENSE FOR TRAILERS, MOTORIZED 
 34.8   BICYCLES; PLATES, FEES; EXEMPTIONS.] Any person, copartnership, 
 34.9   or corporation having a permanent enclosed commercial building 
 34.10  or structure either owned in fee or leased and engaged in the 
 34.11  business, either exclusively or in addition to any other 
 34.12  occupation, of selling motorized bicycles, boat trailers, horse 
 34.13  trailers, or snowmobile trailers, may apply to the registrar for 
 34.14  a dealer's license.  Upon payment of a $10 fee the registrar 
 34.15  shall license the applicant as a dealer for the remainder of the 
 34.16  calendar year in which the application was received.  Thereafter 
 34.17  The license may be renewed on or before the second day of 
 34.18  January of each succeeding year by payment of a fee of $10.  The 
 34.19  registrar shall issue to each dealer, upon request of the 
 34.20  dealer, dealer plates as provided in subdivision 16 upon payment 
 34.21  of $5 for each plate, and the plates may be used in the same 
 34.22  manner and for the same purposes as is provided in subdivision 
 34.23  16.  Except for motorized bicycle dealers, the registrar shall 
 34.24  also issue to the dealer, upon request of the dealer, 
 34.25  "in-transit" plates as provided in subdivision 17 upon payment 
 34.26  of a fee of $5 for each plate.  This subdivision shall does not 
 34.27  be construed to abrogate any of the provisions of this 
 34.28  section as the same relates relating to the duties, 
 34.29  responsibilities, and requirements of persons, copartnerships, 
 34.30  or corporations engaged in the business, either exclusively or 
 34.31  in addition to other occupations, of selling motor vehicles or 
 34.32  manufactured homes, except that a seller of boat trailers, 
 34.33  utility trailers, or snowmobile trailers who is licensed under 
 34.34  this subdivision is not required to have a contract or franchise 
 34.35  with a manufacturer or distributor of new boat trailers, utility 
 34.36  trailers, or new snowmobile trailers the seller proposes to 
 35.1   sell, broker, wholesale, or auction.  This section shall does 
 35.2   not be construed to require a manufacturer of snowmobile 
 35.3   trailers whose manufacturing facility is located outside of the 
 35.4   metropolitan area as defined in section 473.121 to have a 
 35.5   dealer's license to transport the snowmobile trailers to dealers 
 35.6   or retail outlets in the state. 
 35.7      Subd. 23.  [REGISTRAR MAY FILE CHARGES.] The registrar or 
 35.8   the registrar's appointed inspectors may file charges with the 
 35.9   county attorney against any licensee who violates any of the 
 35.10  provisions of this section, including but not limited to, the 
 35.11  grounds for suspension or revocation set out in subdivision 12.  
 35.12  Any violation of this section is a misdemeanor. 
 35.13     Subd. 24.  [BONDS.] All persons licensed hereunder 
 35.14  according to this section shall keep in full force and effect a 
 35.15  bond with a corporate surety to be approved by the registrar of 
 35.16  motor vehicles in the following amounts as herein provided; in 
 35.17  the case of boat trailer, snowmobile trailer, horse trailer or 
 35.18  motorized bicycle dealers in the amount of $5,000; and as to all 
 35.19  other persons in the amount of $50,000.  The bond shall must be 
 35.20  conditioned on the faithful performance by the licensee of the 
 35.21  obligations imposed by the laws of this state, including the 
 35.22  conduct required of a licensee by this section and other 
 35.23  sections governing the sale or transfer of motor vehicles, and 
 35.24  the payment of all taxes, license fees, and penalties.  The bond 
 35.25  shall must be for the benefit of the state of Minnesota and any 
 35.26  transferor, seller, or purchaser of a motor vehicle for any 
 35.27  monetary loss caused by failure of the licensee to meet the 
 35.28  obligations enumerated above.  Proceedings on the forfeiture of 
 35.29  the bonds shall must be commenced in the district court of the 
 35.30  county wherein the business of the licensed person was carried 
 35.31  on, or if in more than one county, the county in which the 
 35.32  offense occurred.  This subdivision does not apply to a used 
 35.33  vehicle parts dealer or a scrap metal processor. 
 35.34     Subd. 25.  [PREEMPTION OF LOCAL ORDINANCES.] It is the 
 35.35  intent and purpose of this section to establish Subdivision 24 
 35.36  establishes a uniform statewide system of bonding motor vehicle 
 36.1   dealers and the provisions of.  This section shall supersede and 
 36.2   preempt subdivision supersedes and preempts all bonding 
 36.3   requirements imposed by any local government unit. 
 36.4      Subd. 26.  [ADVERTISING DISCLOSURE.] All advertising by a 
 36.5   motor vehicle dealer must disclose that the vehicle is being 
 36.6   offered for sale by a dealer through use of the dealership name, 
 36.7   the term "dealer," or the abbreviation "DLR."  A classified 
 36.8   advertisement in a print medium must also include the dealer's 
 36.9   license number. 
 36.10     Subd. 27.  [RULES.] The registrar may adopt rules under 
 36.11  chapter 14 to govern the issuance and regulation of dealer 
 36.12  licenses and dealer plates. 
 36.13     Sec. 10.  Minnesota Statutes 2000, section 168.31, 
 36.14  subdivision 4, is amended to read: 
 36.15     Subd. 4.  [INSTALLMENTS.] If the tax for a vehicle assessed 
 36.16  under section 168.013, subdivision 1c, 1d, 1e, or 1g, amounts to 
 36.17  more than $400, the owner may pay the tax by installments.  The 
 36.18  owner shall tender with the application for registration 
 36.19  one-third of the annual tax due or $400, whichever is greater, 
 36.20  plus any penalties or arrears, plus a fee of $10.  Instead of 
 36.21  this fee, the applicant may furnish a bond, bank letter of 
 36.22  credit, or certificate of deposit approved by the registrar of 
 36.23  motor vehicles, for the total of the tax still due.  The amount 
 36.24  of the bond, letter of credit, or certificate of deposit may 
 36.25  include any penalties assessed.  The bond, letter of credit, or 
 36.26  certificate of deposit must be for the benefit of the state for 
 36.27  monetary loss caused by failure of the vehicle owner to pay 
 36.28  delinquent license fees and penalties.  The remainder of the tax 
 36.29  due must be paid in two equal installments; the due date of the 
 36.30  first installment is the first day of the fifth month of the 
 36.31  registration period for which the tax is assessed and the second 
 36.32  installment is due on the first day of the ninth month of the 
 36.33  registration period for which the tax is assessed.  When the 
 36.34  applicant elects to pay the administrative fee, the registrar 
 36.35  shall issue to the applicant distinctive validation 
 36.36  stickers indicating the expiration date of a registration.  When 
 37.1   the applicant elects to furnish a bond, bank letter, or letter 
 37.2   of deposit, the registrar shall issue regular validation 
 37.3   stickers for the registration year.  If an owner of a vehicle 
 37.4   fails to pay an installment on or before its due date, the 
 37.5   vehicle must not be used on the public streets or highways in 
 37.6   this state until the installment or installments of the tax 
 37.7   remaining due on the vehicle have been paid in full for the 
 37.8   licensed year together with a penalty at the rate of $1 per day 
 37.9   for the remainder of the month in which the balance of the tax 
 37.10  becomes due and $4 a month for each succeeding month or fraction 
 37.11  of a month during which the balance of the tax remains unpaid.  
 37.12  Upon the payment of the balance of the tax and the penalties, 
 37.13  the registrar shall issue a registration certificate to the 
 37.14  owner of the vehicle in the manner provided by law.  The 
 37.15  registrar shall deny installment payment privileges provided in 
 37.16  this subdivision in the subsequent year to any owner on any or 
 37.17  all vehicles of the owner who during the current year fails to 
 37.18  pay any installment due within one month after the due date. 
 37.19     Sec. 11.  Minnesota Statutes 2000, section 168.33, 
 37.20  subdivision 6, is amended to read: 
 37.21     Subd. 6.  [APPLICATION FORMS FURNISHED.] The registrar 
 37.22  shall furnish, from time to time, to those deputy registrars not 
 37.23  equipped with electronic transmission technology, forms for 
 37.24  listing and for applications for registration, as provided 
 37.25  herein, and shall, before January first in each year, furnish to 
 37.26  those deputy registrars, and to such others as the registrar 
 37.27  shall deem advisable, charts or lists setting forth the tax to 
 37.28  which each motor vehicle is subject provide, in a manner and 
 37.29  format prescribed by the registrar, necessary forms and 
 37.30  information to deputy registrars.  The registrar and deputy 
 37.31  registrars shall immediately destroy all number plates 
 37.32  surrendered and shall cancel all certificates so surrendered. 
 37.33     Sec. 12.  Minnesota Statutes 2000, section 168.33, is 
 37.34  amended by adding a subdivision to read: 
 37.35     Subd. 9.  [RULES.] The commissioner of public safety may 
 37.36  adopt rules for administering and enforcing this section. 
 38.1      Sec. 13.  Minnesota Statutes 2000, section 168A.01, 
 38.2   subdivision 2, is amended to read: 
 38.3      Subd. 2.  [DEALER.] "Dealer" has the meaning given it in 
 38.4   section 168.27, subdivision 1. 
 38.5      Sec. 14.  Minnesota Statutes 2000, section 168A.01, is 
 38.6   amended by adding a subdivision to read: 
 38.7      Subd. 2a.  [DELIVER.] "Deliver" means to transmit 
 38.8   electronically or by other means approved by the registrar. 
 38.9      Sec. 15.  Minnesota Statutes 2000, section 168A.01, 
 38.10  subdivision 24, is amended to read: 
 38.11     Subd. 24.  [VEHICLE.] (a) "Vehicle" means every device in, 
 38.12  upon, or by which any person or property is or may be 
 38.13  transported or drawn upon a highway, excepting. 
 38.14     (b) The term does not include: 
 38.15     (1) devices moved by human power or used exclusively upon 
 38.16  stationary rails or tracks, but including; or 
 38.17     (2) vehicles not originally constructed primarily for use 
 38.18  on public roads and highways. 
 38.19     (c) The term does include motorized bicycles as defined in 
 38.20  section 168.011, subdivision 27. 
 38.21     Sec. 16.  Minnesota Statutes 2000, section 168A.04, 
 38.22  subdivision 5, is amended to read: 
 38.23     Subd. 5.  [SPECIALLY CONSTRUCTED OR RECONSTRUCTED VEHICLE.] 
 38.24  Except as provided in subdivision 6, if the application refers 
 38.25  to a specially constructed vehicle or a reconstructed vehicle, 
 38.26  the application shall so state and shall contain or be 
 38.27  accompanied by: 
 38.28     (1) any information and documents the department reasonably 
 38.29  requires to establish the ownership of the vehicle and the 
 38.30  existence or nonexistence and priority of security interests in 
 38.31  it; 
 38.32     (2) the certificate of a person authorized by the 
 38.33  department that the identifying number of the vehicle has been 
 38.34  inspected and found to conform to the description given in the 
 38.35  application, or any other proof of the identity of the vehicle 
 38.36  the department reasonably requires.; and 
 39.1      (3) at the time of application, a written certification to 
 39.2   the department that the vehicle to be titled meets the 
 39.3   requirements of chapter 169 for vehicles in its class regarding 
 39.4   safety and acceptability to operate on public roads and highways.
 39.5      Sec. 17.  Minnesota Statutes 2000, section 168A.05, 
 39.6   subdivision 5a, is amended to read: 
 39.7      Subd. 5a.  [POLLUTION CONTROL EQUIPMENT DISCLOSURE.] The 
 39.8   certificate of title shall contain a form for disclosure by the 
 39.9   transferor of the condition of the vehicle's pollution control 
 39.10  equipment as required by section 325E.0951.  The disclosure form 
 39.11  must be in a format as prescribed by the registrar. 
 39.12     Sec. 18.  Minnesota Statutes 2000, section 168A.09, 
 39.13  subdivision 1, is amended to read: 
 39.14     Subdivision 1.  [APPLICATION; FORM OF DUPLICATE.] In the 
 39.15  event a certificate of title is lost, stolen, mutilated, or 
 39.16  destroyed or becomes illegible, the owner or legal 
 39.17  representative of the owner named in the certificate may make 
 39.18  application to the department or deputy registrar for a 
 39.19  duplicate on in a form format prescribed by the department.  The 
 39.20  department shall issue a duplicate certificate of title if 
 39.21  satisfied that the applicant is entitled thereto.  The duplicate 
 39.22  certificate of title shall be plainly marked as a duplicate and 
 39.23  mailed or delivered to the owner.  The department shall indicate 
 39.24  in its records that a duplicate has been issued.  As a condition 
 39.25  to issuing a duplicate certificate of title, the department may 
 39.26  require a bond from the applicant in the manner and form format 
 39.27  prescribed in section 168A.07, subdivision 1, clause (2).  The 
 39.28  duplicate certificate of title shall contain the legend:  "This 
 39.29  duplicate certificate of title may be subject to the rights of a 
 39.30  person under the original certificate."  
 39.31     Sec. 19.  Minnesota Statutes 2000, section 168A.11, 
 39.32  subdivision 2, is amended to read: 
 39.33     Subd. 2.  [PURCHASE RECEIPT.] A dealer, on buying a vehicle 
 39.34  for which the seller does not present a certificate of title, 
 39.35  shall at the time of taking delivery of the vehicle execute in 
 39.36  triplicate a purchase receipt for the vehicle in a form format 
 40.1   designated by the department, and deliver one a copy to the 
 40.2   seller.  When a vehicle purchased by a dealer has not been 
 40.3   resold after 21 days, the dealer shall mail, transmit, or 
 40.4   deliver one copy of the receipt to the department.  In a format 
 40.5   and at a time prescribed by the registrar, the dealer shall 
 40.6   notify the registrar that the vehicle is being held for resale 
 40.7   by the dealer. 
 40.8      Sec. 20.  Minnesota Statutes 2000, section 168A.12, 
 40.9   subdivision 1, is amended to read: 
 40.10     Subdivision 1.  [LAST CERTIFICATE TO DEPARTMENT; 
 40.11  APPLICATION.] If the interest of an owner in a vehicle passes to 
 40.12  another other than by voluntary transfer, the transferee shall, 
 40.13  except as provided in subdivision 2, promptly mail or deliver to 
 40.14  the department the last certificate of title, if available, 
 40.15  proof of the transfer, and an application for a new certificate 
 40.16  in the form format the department prescribes.  
 40.17     Sec. 21.  Minnesota Statutes 2000, section 168A.12, 
 40.18  subdivision 2, is amended to read: 
 40.19     Subd. 2.  [OWNER'S INTEREST TERMINATED OR VEHICLE SOLD BY 
 40.20  SECURED PARTY.] If the interest of the owner is terminated or 
 40.21  the vehicle is sold under a security agreement by a secured 
 40.22  party named in the certificate of title, the transferee shall 
 40.23  promptly mail or deliver to the department the last certificate 
 40.24  of title, if available, an application for a new certificate in 
 40.25  the form format the department prescribes, and an affidavit made 
 40.26  by or on behalf of the secured party that the interest of the 
 40.27  owner was lawfully terminated or the vehicle sold pursuant to 
 40.28  the terms of the security agreement.  If the secured party 
 40.29  succeeds to the interest of the owner and holds the vehicle for 
 40.30  resale, the secured party need not secure a new certificate of 
 40.31  title provided that a notice thereof in form a format designated 
 40.32  by the department is mailed or delivered by the secured party to 
 40.33  the department in duplicate within 48 hours, but upon transfer 
 40.34  to another person the secured party shall promptly execute 
 40.35  assignment and warranty of title and mail or deliver to the 
 40.36  transferee or the department the certificate, if available, the 
 41.1   affidavit, and other documents required to be sent to the 
 41.2   department by the transferee.  
 41.3      Sec. 22.  Minnesota Statutes 2000, section 168A.15, is 
 41.4   amended by adding a subdivision to read: 
 41.5      Subd. 4.  [MOTORCYCLE WITH NEW ENGINE.] (a) If the 
 41.6   commissioner does not require that a new or amended title be 
 41.7   issued and stamped as reconstructed or otherwise under this 
 41.8   chapter for an automobile being operated with an engine that is 
 41.9   not its original engine, then the commissioner shall not require 
 41.10  that title issued for a motorcycle being operated with an engine 
 41.11  that is not its original engine be stamped or otherwise labeled 
 41.12  as reconstructed or otherwise.  
 41.13     (b) This subdivision does not prevent the commissioner from 
 41.14  requiring that a new application be completed according to 
 41.15  section 168A.04 and be filed with the commissioner.  Upon 
 41.16  receipt of the completed application and the old title, and 
 41.17  subject to section 168A.05, subdivision 1, the commissioner 
 41.18  shall issue another certificate of title, which must list the 
 41.19  engine number, for the motorcycle with the nonoriginal engine. 
 41.20     Sec. 23.  Minnesota Statutes 2000, section 168A.154, is 
 41.21  amended to read: 
 41.22     168A.154 [SALVAGE VEHICLE TAKEN OUT OF STATE.] 
 41.23     A dealer who sells a salvage vehicle to a buyer who intends 
 41.24  to remove the vehicle from the state shall report the sale 
 41.25  within ten days to the department on in a form format prescribed 
 41.26  by the department. 
 41.27     Sec. 24.  Minnesota Statutes 2000, section 168A.18, is 
 41.28  amended to read: 
 41.29     168A.18 [DUTIES OF PARTIES RELATING TO SECURITY INTEREST.] 
 41.30     If an owner creates a security interest in a vehicle: 
 41.31     (1) The owner shall immediately execute the application in 
 41.32  the space provided therefor on the certificate of title, or on 
 41.33  in a separate form format the department prescribes, to name the 
 41.34  secured party on the certificate, showing the name and address 
 41.35  of the secured party, and cause the certificate, application, 
 41.36  and the required fees and taxes to be delivered to the secured 
 42.1   party. 
 42.2      (2) The secured party shall immediately cause the 
 42.3   certificate, application, and the required fees and taxes to be 
 42.4   mailed or delivered to the department.  
 42.5      (3) A second or subordinate secured party does not affect 
 42.6   the rights of the first secured party under a security agreement.
 42.7      (4) Upon receipt of the certificate of title, application, 
 42.8   and the required fees and taxes, the department shall issue a 
 42.9   new certificate containing the name and address of the new 
 42.10  secured party, and mail or deliver the certificate to the 
 42.11  owner.  The secured party or parties shall be issued a 
 42.12  notification notified that the security interest has been 
 42.13  recorded. 
 42.14     Sec. 25.  Minnesota Statutes 2000, section 168A.19, 
 42.15  subdivision 2, is amended to read: 
 42.16     Subd. 2.  [ASSIGNEE NAMED AS SECURED PARTY.] The assignee 
 42.17  may, but need not to perfect the assignment, have the 
 42.18  certificate of title endorsed or issued with the assignee named 
 42.19  as secured party, upon delivering to the department the 
 42.20  certificate and an assignment by the secured party named in the 
 42.21  certificate in the form format the department prescribes 
 42.22  together with the required fee.  
 42.23     Sec. 26.  Minnesota Statutes 2000, section 168A.20, 
 42.24  subdivision 2, is amended to read: 
 42.25     Subd. 2.  [CERTIFICATE WITH PRIOR SECURED PARTY; RELEASE.] 
 42.26  Upon the satisfaction of a security interest in a vehicle for 
 42.27  which the certificate of title is in the possession of a prior 
 42.28  secured party, the secured party whose security interest is 
 42.29  satisfied shall within 15 days, or seven days if satisfied by a 
 42.30  dealer licensed under section 168.27, subdivision 2, 3, or 4, 
 42.31  execute a release in the form format the department prescribes 
 42.32  and deliver the release to the owner or any person who delivers 
 42.33  to the secured party an authorization from the owner to receive 
 42.34  it.  The secured party in possession of the certificate of title 
 42.35  shall either deliver the certificate to the owner, or the person 
 42.36  authorized by the owner, for delivery to the department, or upon 
 43.1   receipt of the release, mail or deliver it with the certificate 
 43.2   to the department, which shall release the subordinate secured 
 43.3   party's rights on the certificate or issue a new certificate. 
 43.4      Sec. 27.  Minnesota Statutes 2000, section 168A.20, 
 43.5   subdivision 3, is amended to read: 
 43.6      Subd. 3.  [CERTIFICATE WITH OWNER.] Upon the satisfaction 
 43.7   of a security interest in a vehicle for which the certificate of 
 43.8   title is in the possession of the owner, the secured party shall 
 43.9   within 15 days, or seven days if satisfied by a dealer licensed 
 43.10  under section 168.27, subdivision 2, 3, or 4, execute a release 
 43.11  of security interest on in the form format prescribed by the 
 43.12  department and mail or deliver the notification with release to 
 43.13  the owner or any person who delivers to the secured party an 
 43.14  authorization from the owner to receive the release.  The 
 43.15  secured party may notify the registrar of the satisfaction of 
 43.16  lien in a manner prescribed by the department. 
 43.17     Sec. 28.  Minnesota Statutes 2000, section 168A.20, 
 43.18  subdivision 4, is amended to read: 
 43.19     Subd. 4.  [SATISFACTION OF LIEN FOR CHILD SUPPORT; 
 43.20  RELEASE.] If the secured party is a public authority or a child 
 43.21  support or maintenance obligee with a lien under section 
 43.22  168A.05, subdivision 8, upon either the satisfaction of a 
 43.23  security interest in a vehicle for which the certificate of 
 43.24  title is in the possession of the owner, or the execution by the 
 43.25  owner of a written payment agreement determined to be acceptable 
 43.26  by the court, a child support magistrate, the public authority, 
 43.27  or the obligee, within 15 days, or seven days if satisfied by a 
 43.28  dealer licensed under section 168.27, subdivision 2, 3, or 4, 
 43.29  the secured party shall execute a release of security interest 
 43.30  on in the form format prescribed by the department and mail or 
 43.31  deliver the notification with release to the owner or any person 
 43.32  who delivers to the secured party an authorization from the 
 43.33  owner to receive the release. 
 43.34     Sec. 29.  Minnesota Statutes 2000, section 168A.24, 
 43.35  subdivision 1, is amended to read: 
 43.36     Subdivision 1.  [FORMS.] The department shall prescribe and 
 44.1   provide suitable forms of applications, certificates of title, 
 44.2   notices of security interests, and all other notices and forms 
 44.3   necessary to carry out the provisions of sections 168A.01 to 
 44.4   168A.31 and shall determine the format in which the forms will 
 44.5   appear. 
 44.6      Sec. 30.  Minnesota Statutes 2000, section 168C.02, 
 44.7   subdivision 1, is amended to read: 
 44.8      Subdivision 1.  [SCOPE.] For purposes of Laws 1976, this 
 44.9   chapter 199, the terms defined in this section shall have the 
 44.10  meanings given them. 
 44.11     Sec. 31.  Minnesota Statutes 2000, section 168C.02, 
 44.12  subdivision 5, is amended to read: 
 44.13     Subd. 5.  [LICENSE PLATE.] "License plate" means a tag, 
 44.14  plate, seal, sticker, or other device which that can be securely 
 44.15  attached to a bicycle and that is issued upon registration of 
 44.16  the bicycle. 
 44.17     Sec. 32.  Minnesota Statutes 2000, section 168C.03, is 
 44.18  amended to read: 
 44.19     168C.03 [REGISTRATION APPLICATION.] 
 44.20     On or after March 1, 1977 any owner of a bicycle may apply 
 44.21  for registration of the bicycle to the commissioner, to any 
 44.22  deputy registrar of motor vehicles acting pursuant to section 
 44.23  168.33, or to any deputy registrar of bicycles appointed by the 
 44.24  commissioner pursuant to section 168C.11.  Applications shall 
 44.25  contain the name and address of the owner, the signature of the 
 44.26  owner, the name and address of the person from whom purchased, 
 44.27  the date of purchase, the date of registration, the make, serial 
 44.28  number, and any additional information as the commissioner may 
 44.29  require.  Applications shall be on a three-part form provided by 
 44.30  the commissioner.  The original shall be retained by or 
 44.31  immediately forwarded to the commissioner, the second copy shall 
 44.32  be retained by the purchaser and the third copy shall be 
 44.33  retained for one year by the deputy registrar, if any, who 
 44.34  received the application must be in a format prescribed by the 
 44.35  commissioner and contain information required by the 
 44.36  commissioner to license a bicycle.  The commissioner shall 
 45.1   designate a number to be stamped or otherwise permanently 
 45.2   affixed on the frames of bicycles on which no serial number can 
 45.3   be found, or on which the number is illegible or insufficient 
 45.4   for identification purposes. 
 45.5      Sec. 33.  Minnesota Statutes 2000, section 168C.04, 
 45.6   subdivision 1, is amended to read: 
 45.7      Subdivision 1.  [THREE-YEAR REGISTRATION FEE; PROCEDURES.] 
 45.8   The registration fee for bicycles shall be is $9 after July 1, 
 45.9   1991.  These fees shall must be paid at the time of registration.
 45.10  The fees, and any donations in excess of the fees, must be 
 45.11  deposited in a bicycle transportation account in the special 
 45.12  revenue fund.  Proof of purchase ownership is required for 
 45.13  registration.  Bicycles lacking proof of purchase ownership may 
 45.14  be registered if there is no evidence that the bicycle is 
 45.15  stolen.  However, the registration record must be marked to 
 45.16  indicate that no proof of purchase was provided.  The 
 45.17  registration is valid for three calendar years.  A person 
 45.18  registering a bicycle may add an additional amount to the 
 45.19  registration fee, and all amounts so added must be deposited in 
 45.20  the same manner as registration fees.  A person registering a 
 45.21  bicycle must, at the time of registration, be informed that a 
 45.22  registrant may add an additional amount to the fee and that all 
 45.23  such additional amounts will be used for the purposes specified 
 45.24  in subdivision 2. 
 45.25     Sec. 34.  Minnesota Statutes 2000, section 168C.05, is 
 45.26  amended to read: 
 45.27     168C.05 [REPORT OF TRANSFER.] 
 45.28     Every person who sells or transfers ownership of any 
 45.29  bicycle registered pursuant to Laws 1976, this chapter 199 shall 
 45.30  report the sale or transfer to the commissioner, indicating the 
 45.31  name and address of the person to whom the bicycle was sold or 
 45.32  transferred.  The report shall be made within 14 days of the 
 45.33  sale or transfer.  The report of sale must include the 
 45.34  information required by the commissioner and be in the format 
 45.35  prescribed by the commissioner. 
 45.36     Sec. 35.  Minnesota Statutes 2000, section 168C.06, is 
 46.1   amended to read: 
 46.2      168C.06 [NOTIFICATION OF CHANGE OF ADDRESS.] 
 46.3      Upon moving or change of address, the owner of a bicycle 
 46.4   registered pursuant to Laws 1976, this chapter 199 shall notify 
 46.5   the commissioner in writing the format and manner prescribed by 
 46.6   the commissioner of the new address within 14 days. 
 46.7      Sec. 36.  Minnesota Statutes 2000, section 168C.07, is 
 46.8   amended to read: 
 46.9      168C.07 [LICENSE PLATES.] 
 46.10     The commissioner shall provide to the registrant a suitable 
 46.11  registration card having that has the registration number 
 46.12  stamped thereon on the card and indicating that indicates the 
 46.13  date of registration, the make and serial number of the bicycle, 
 46.14  the owner's name and address, and any additional information as 
 46.15  the commissioner may require.  The commissioner shall retain 
 46.16  information concerning each registration shall be retained by 
 46.17  the commissioner.  The commissioner shall issue a license plate, 
 46.18  which shall must be securely attached to the bicycle covered by 
 46.19  the registration.  Upon a satisfactory showing that the license 
 46.20  plate or registration card has been lost or destroyed, the 
 46.21  commissioner shall issue a replacement license plate or 
 46.22  registration card upon payment of a fee of $1.  All fees so 
 46.23  collected shall must be deposited to the general fund. 
 46.24     Sec. 37.  Minnesota Statutes 2000, section 168C.08, is 
 46.25  amended to read: 
 46.26     168C.08 [ALTERING SERIAL NUMBER; PENALTY.] 
 46.27     No A person shall not willfully remove, destroy, mutilate 
 46.28  or otherwise alter the serial number or equivalent number of any 
 46.29  bicycle designated by the commissioner pursuant to section 
 46.30  168C.03.  No A person shall not willfully remove, destroy, 
 46.31  mutilate, or otherwise alter any license plate during the time 
 46.32  in which the license plate is operative.  Any person who 
 46.33  violates the provisions of this section is guilty of a 
 46.34  misdemeanor. 
 46.35     Sec. 38.  Minnesota Statutes 2000, section 168C.09, is 
 46.36  amended to read: 
 47.1      168C.09 [THEFT; PENALTY.] 
 47.2      Subdivision 1.  [REPORTS; ENTRY INTO CRIME INFORMATION 
 47.3   CENTER.] The local law enforcement agency shall report the theft 
 47.4   of all bicycles registered pursuant to Laws 1976, this chapter 
 47.5   199 to the department of public safety within five days.  
 47.6   Reports of the stolen bicycles shall must be entered in the 
 47.7   Minnesota crime information center of the department of public 
 47.8   safety.  When the stolen bicycle has been recovered by a local 
 47.9   law enforcement agency, the agency shall report the recovery to 
 47.10  the department of public safety within five days of the recovery 
 47.11  in the format and manner prescribed by the commissioner. 
 47.12     Subd. 2.  [RECORDS.] The commissioner shall maintain a 
 47.13  record of all bicycles registered pursuant to Laws 1976, this 
 47.14  chapter 199 in the state in an automated system.  The records 
 47.15  shall must be available to all authorized law enforcement 
 47.16  agencies through the Minnesota crime information center. 
 47.17     Subd. 3.  [VIOLATION AND PENALTY.] Any person who knowingly 
 47.18  sells or offers for sale a bicycle registered under Laws 
 47.19  1976, this chapter 199 which that is not owned by that person or 
 47.20  a family member is guilty of theft and subject to punishment 
 47.21  under section 609.52, subdivision 3. 
 47.22     Sec. 39.  Minnesota Statutes 2000, section 168C.11, is 
 47.23  amended to read: 
 47.24     168C.11 [DEPUTY REGISTRARS OF BICYCLES.] 
 47.25     Subdivision 1.  [APPOINTMENT.] Subject to the provisions of 
 47.26  subdivision 2, the commissioner shall appoint as deputy 
 47.27  registrars of bicycles any bicycle dealer, or agent or employee 
 47.28  thereof of the dealer, or agent or employee of a nonprofit 
 47.29  organization promoting bicycling or in whose activities 
 47.30  bicycling plays an integral part, or an agent or employee 
 47.31  designated by a municipality that sells bicycles at public 
 47.32  auction who applies for appointment in a manner prescribed by 
 47.33  the commissioner; provided that concurrently there may be no 
 47.34  more than one deputy for each separate place of business of a 
 47.35  bicycle dealer.  Deputy registrars of bicycles shall act as 
 47.36  agents of the commissioner and may accept registrations as 
 48.1   provided in Laws 1976, this chapter 199, except that no deputy 
 48.2   registrar of bicycles shall be required to register bicycles 
 48.3   sold by other bicycle dealers.  The commissioner, deputy 
 48.4   registrars of motor vehicles, and deputy registrars of bicycles 
 48.5   may charge and retain an additional $1 per registration granted 
 48.6   for their services.  In the case of a deputy registrar of motor 
 48.7   vehicles, the $1 shall must be deposited in the treasury of the 
 48.8   place for which the deputy registrar is appointed, or if not a 
 48.9   public official the deputy registrar shall retain the filing 
 48.10  fee.  Other registration fees collected by the commissioner, 
 48.11  deputy registrars of motor vehicles, and deputy registrars of 
 48.12  bicycles shall must be processed, accounted for, and transmitted 
 48.13  to the state treasurer as required by the commissioner. 
 48.14     Subd. 2.  [DENIAL, SUSPENSION OR REVOCATION OF 
 48.15  APPOINTMENT.] The commissioner, without prior notice or hearing, 
 48.16  may issue an order denying, suspending, or revoking any 
 48.17  appointment made or applied for pursuant to this section upon 
 48.18  finding that the applicant or deputy registrar of bicycles has 
 48.19  violated or failed to comply with any provision of Laws 1976, 
 48.20  this chapter 199 or any rule adopted hereunder under the 
 48.21  authority of this chapter.  Upon the entry of such an order, the 
 48.22  commissioner shall promptly serve a copy thereof of the order on 
 48.23  the applicant or deputy registrar of bicycles.  The order shall 
 48.24  must state the reasons for its issuance and, in the case of a 
 48.25  suspension or revocation of appointment, shall must specify that 
 48.26  upon the written request of the deputy registrar of bicycles the 
 48.27  matter will be set for hearing within 15 days after the receipt 
 48.28  of the request,; provided, that with the consent of the deputy 
 48.29  registrar of bicycles a hearing may be held subsequent to the 
 48.30  expiration of the 15-day period specified herein.  If no hearing 
 48.31  is requested, the order will remain remains in effect until it 
 48.32  is modified or vacated by the commissioner.  If a hearing is 
 48.33  requested, the commissioner, after notice and hearing in 
 48.34  accordance with the provisions of chapter 14, shall affirm, 
 48.35  modify, or vacate the order. 
 48.36     Sec. 40.  Minnesota Statutes 2000, section 168C.12, is 
 49.1   amended to read: 
 49.2      168C.12 [ADMINISTRATION; RULES.] 
 49.3      The commissioner shall adopt rules for the implementation 
 49.4   and administration of Laws 1976, this chapter 199 no later than 
 49.5   March 1, 1977.  The commissioner shall begin to accept 
 49.6   registrations and implement Laws 1976, chapter 199 on March 1, 
 49.7   1977.  Nothing herein shall be construed to prevent in this 
 49.8   chapter prevents the commissioner from contracting any service 
 49.9   provided under Laws 1976, this chapter 199 to any private person 
 49.10  or entity or other unit of government. 
 49.11     Sec. 41.  Minnesota Statutes 2000, section 168C.13, 
 49.12  subdivision 1, is amended to read: 
 49.13     Subdivision 1.  [BICYCLE REGISTRATION POWERS OF POLITICAL 
 49.14  SUBDIVISION.] After February 28, 1977, No political subdivision 
 49.15  may license or register bicycles except as a deputy registrar 
 49.16  pursuant to section 168C.11, subdivision 1.  However, any 
 49.17  political subdivision which had such power prior to that had the 
 49.18  power of a deputy registrar before March 1, 1977, may thereafter 
 49.19  require that any or all bicycles used or ridden upon any 
 49.20  highway, street, alley, sidewalk, or other public way, or 
 49.21  property within the boundaries thereof shall of the public way, 
 49.22  must be registered.  Applications for new registrations required 
 49.23  pursuant to this subdivision shall must be made to the 
 49.24  commissioner in the same manner and subject to the same rules, 
 49.25  fees, and penalties as those made voluntarily pursuant to 
 49.26  section 168C.03. 
 49.27     Sec. 42.  Minnesota Statutes 2000, section 169.06, is 
 49.28  amended by adding a subdivision to read: 
 49.29     Subd. 9.  [AFFIRMATIVE DEFENSE RELATING TO UNCHANGING 
 49.30  TRAFFIC CONTROL SIGNAL.] (a) A person operating a motorcycle who 
 49.31  violates subdivision 4 by entering or crossing an intersection 
 49.32  controlled by a traffic-control signal against a red light has 
 49.33  an affirmative defense to that charge if the person establishes 
 49.34  all of the following conditions: 
 49.35     (1) the motorcycle has been brought to a complete stop; 
 49.36     (2) the traffic-control signal continues to show a red 
 50.1   light for an unreasonable time; 
 50.2      (3) the traffic-control signal is apparently malfunctioning 
 50.3   or, if programmed or engineered to change to a green light only 
 50.4   after detecting the approach of a motor vehicle, the signal has 
 50.5   apparently failed to detect the arrival of the motorcycle; and 
 50.6      (4) no motor vehicle or person is approaching on the street 
 50.7   or highway to be crossed or entered or is so far away from the 
 50.8   intersection that it does not constitute an immediate hazard. 
 50.9      (b) The affirmative defense in this subdivision applies 
 50.10  only to a violation for entering or crossing an intersection 
 50.11  controlled by a traffic-control signal against a red light and 
 50.12  does not provide a defense to any other civil or criminal action.
 50.13     Sec. 43.  Minnesota Statutes 2000, section 169.26, 
 50.14  subdivision 1, is amended to read: 
 50.15     Subdivision 1.  [REQUIREMENTS.] (a) Except as provided in 
 50.16  section 169.28, subdivision 1, when any person driving a vehicle 
 50.17  approaches a railroad grade crossing under any of the 
 50.18  circumstances stated in this paragraph, the driver shall stop 
 50.19  the vehicle not less than ten feet from the nearest railroad 
 50.20  track and shall not proceed until safe to do so.  These 
 50.21  requirements apply when:  
 50.22     (1) a clearly visible electric or mechanical signal device 
 50.23  warns of the immediate approach of a railroad train; or 
 50.24     (2) an approaching railroad train is plainly visible and is 
 50.25  in hazardous proximity.  
 50.26     (b) The fact that a moving train approaching a railroad 
 50.27  grade crossing is visible from the crossing is prima facie 
 50.28  evidence that it is not safe to proceed. 
 50.29     (c) The driver of a vehicle shall stop and remain stopped 
 50.30  and not traverse the grade crossing when a human flagger signals 
 50.31  the approach or passage of a train or when a crossing gate is 
 50.32  lowered warning of the immediate approach or passage of a 
 50.33  railroad train.  No person may drive a vehicle past a flagger at 
 50.34  a railroad crossing until the flagger signals that the way is 
 50.35  clear to proceed or drive a vehicle past a lowered crossing gate.
 50.36     Sec. 44.  Minnesota Statutes 2000, section 169.28, 
 51.1   subdivision 1, is amended to read: 
 51.2      Subdivision 1.  [STOP REQUIRED.] (a) The driver of any 
 51.3   motor vehicle carrying passengers for hire, or of any school bus 
 51.4   whether carrying passengers or not, or of any Head Start bus 
 51.5   whether carrying passengers or not, or of any vehicle carrying 
 51.6   explosive substances or flammable liquids, or liquid gas under 
 51.7   pressure as a cargo or part of a cargo that is required to stop 
 51.8   at railroad grade crossings under Code of Federal Regulations, 
 51.9   title 49, section 392.10, before crossing at grade any track or 
 51.10  tracks of a railroad, shall stop the vehicle not less than ten 
 51.11  15 feet nor more than 50 feet from the nearest rail of the 
 51.12  railroad and while so stopped shall listen and look in both 
 51.13  directions along the track for any approaching train, and for 
 51.14  signals indicating the approach of a train, except as 
 51.15  hereinafter provided, and shall not proceed until safe to do 
 51.16  so.  The driver must not shift gears while crossing the railroad 
 51.17  tracks.  
 51.18     (b) A school bus or Head Start bus shall not be flagged 
 51.19  across railroad grade crossings except at those railroad grade 
 51.20  crossings that the local school administrative officer may 
 51.21  designate. 
 51.22     Sec. 45.  Minnesota Statutes 2001 Supplement, section 
 51.23  169.781, subdivision 2, is amended to read: 
 51.24     Subd. 2.  [INSPECTION REQUIRED.] It is unlawful for a 
 51.25  person to operate or permit the operation of: 
 51.26     (1) a commercial motor vehicle registered in Minnesota; or 
 51.27     (2) special mobile equipment as defined in section 168.011, 
 51.28  subdivision 22, and which is self-propelled, if it is mounted on 
 51.29  a commercial motor vehicle chassis, including, but not limited 
 51.30  to, a mobile crane, a water well-drilling rig, and a 
 51.31  concrete-placement pumper, 
 51.32  unless the vehicle displays a valid safety inspection decal 
 51.33  issued by an inspector certified by the commissioner, or the 
 51.34  vehicle carries (1) proof that the vehicle complies with federal 
 51.35  motor vehicle inspection requirements for vehicles in interstate 
 51.36  commerce, and (2) a certificate of compliance with federal 
 52.1   requirements issued by the commissioner under subdivision 9. 
 52.2      Sec. 46.  Minnesota Statutes 2001 Supplement, section 
 52.3   169.79, subdivision 3, is amended to read: 
 52.4      Subd. 3.  [MOTORCYCLE REAR DISPLAY OF SINGLE PLATE.] If the 
 52.5   vehicle is a motorcycle, motor scooter, motorized bicycle, 
 52.6   motorcycle sidecar, trailer registered at greater than 3,000 
 52.7   pounds gross vehicle weight (GVW), semitrailer, or vehicle 
 52.8   displaying a dealer plate, then one license plate must be 
 52.9   displayed on the rear of the vehicle.  
 52.10     Sec. 47.  Minnesota Statutes 2001 Supplement, section 
 52.11  169.79, is amended by adding a subdivision to read: 
 52.12     Subd. 3a.  [SMALL TRAILER.] If the vehicle is a trailer 
 52.13  with 3,000 pounds or less GVW with lifetime registration, the 
 52.14  numbered plate or sticker must be adhered to the side of the 
 52.15  trailer frame tongue near the hitch. 
 52.16     Sec. 48.  Minnesota Statutes 2001 Supplement, section 
 52.17  169.79, subdivision 8, is amended to read: 
 52.18     Subd. 8.  [PLATE REGISTRATION STICKERS.] License plates 
 52.19  issued to vehicles registered under section 168.017 must display 
 52.20  the month of expiration in the lower left corner as viewed 
 52.21  facing the plate and the year of expiration in the lower right 
 52.22  corner as viewed facing the plate.  License plates issued to 
 52.23  vehicles registered under section 168.127 must display either 
 52.24  fleet registration validation stickers in the lower right corner 
 52.25  as viewed facing the plates or distinctive license plates, 
 52.26  issued by the registrar, with "FLEET REG" embossed displayed on 
 52.27  the bottom center portion of the plate. 
 52.28     Sec. 49.  Minnesota Statutes 2000, section 169.974, 
 52.29  subdivision 5, is amended to read: 
 52.30     Subd. 5.  [DRIVING RULES.] (a) An operator of a motorcycle 
 52.31  shall ride only upon a permanent and regular seat which is 
 52.32  attached to the vehicle for that purpose.  No other person shall 
 52.33  ride on a motorcycle; except that passengers may ride upon a 
 52.34  permanent and regular operator's seat if designed for two 
 52.35  persons, or upon additional seats attached to the vehicle to the 
 52.36  rear of the operator's seat, or in a sidecar attached to the 
 53.1   vehicle; provided, however, that the operator of a motorcycle 
 53.2   shall not carry passengers in a number in excess of the designed 
 53.3   capacity of the motorcycle or sidecar attached to it.  No 
 53.4   passenger shall be carried in a position that will interfere 
 53.5   with the safe operation of the motorcycle or the view of the 
 53.6   operator. 
 53.7      (b) No person shall ride upon a motorcycle as a passenger 
 53.8   unless, when sitting astride the seat, the person can reach the 
 53.9   foot rests with both feet. 
 53.10     (c) No person, except passengers of sidecars or drivers and 
 53.11  passengers of three-wheeled motorcycles, shall operate or ride 
 53.12  upon a motorcycle except while sitting astride the seat, facing 
 53.13  forward, with one leg on either side of the motorcycle. 
 53.14     (d) No person shall operate a motorcycle while carrying 
 53.15  animals, packages, bundles, or other cargo which prevent the 
 53.16  person from keeping both hands on the handlebars. 
 53.17     (e) No person shall operate a motorcycle between lanes of 
 53.18  moving or stationary vehicles headed in the same direction, nor 
 53.19  shall any person drive a motorcycle abreast of or overtake or 
 53.20  pass another vehicle within the same traffic lane, except that 
 53.21  motorcycles may, with the consent of both drivers, be operated 
 53.22  not more than two abreast in a single traffic lane. 
 53.23     (f) Motor vehicles including motorcycles are entitled to 
 53.24  the full use of a traffic lane and no motor vehicle may be 
 53.25  driven or operated in a manner so as to deprive a motorcycle of 
 53.26  the full use of a traffic lane. 
 53.27     (g) A person operating a motorcycle upon a roadway must be 
 53.28  granted the rights and is subject to the duties applicable to a 
 53.29  motor vehicle as provided by law, except as to those provisions 
 53.30  which by their nature can have no application. 
 53.31     (h) Paragraph (e) of this subdivision does not apply to 
 53.32  police officers in the performance of their official duties. 
 53.33     (i) No person shall operate a motorcycle on a street or 
 53.34  highway unless the headlight or headlights are lighted at all 
 53.35  times the motorcycle is so operated. 
 53.36     (j) A person parking a motorcycle on the roadway of a 
 54.1   street or highway must: 
 54.2      (1) if parking in a marked parking space, park the 
 54.3   motorcycle completely within the marked space; and 
 54.4      (2) park the motorcycle in such a way that the front of the 
 54.5   motorcycle is pointed or angled toward the nearest lane of 
 54.6   traffic to the extent practicable and necessary to allow the 
 54.7   operator to (i) view any traffic in both directions of the 
 54.8   street or highway without having to move the motorcycle into a 
 54.9   lane of traffic and without losing balance or control of the 
 54.10  motorcycle, and (ii) ride the motorcycle forward and directly 
 54.11  into a lane of traffic when the lane is sufficiently clear of 
 54.12  traffic. 
 54.13     Sec. 50.  Minnesota Statutes 2000, section 171.02, 
 54.14  subdivision 1, is amended to read: 
 54.15     Subdivision 1.  [LICENSE REQUIRED.] No person, Except those 
 54.16  hereinafter when expressly exempted, a person shall not 
 54.17  drive any a motor vehicle upon any a street or highway in this 
 54.18  state unless such the person has a license valid under the 
 54.19  provisions of this chapter for the type or class of vehicle 
 54.20  being driven.  No person The department shall receive not issue 
 54.21  a driver's license to a person unless and until the person's 
 54.22  license from any jurisdiction has been invalidated by the 
 54.23  department.  The department shall provide to the issuing 
 54.24  department of any jurisdiction, information that the licensee is 
 54.25  now licensed in Minnesota.  No A person shall be is not 
 54.26  permitted to have more than one valid driver's license at any 
 54.27  time.  No The department shall not issue to a person to whom a 
 54.28  current Minnesota identification card has been issued may 
 54.29  receive a driver's license, other than an instruction permit or 
 54.30  a limited license, unless the person's Minnesota identification 
 54.31  card has been invalidated by the department. 
 54.32     Sec. 51.  Minnesota Statutes 2000, section 171.02, 
 54.33  subdivision 5, is amended to read: 
 54.34     Subd. 5.  [EXEMPTION FOR CERTAIN BACKUP SNOWPLOW DRIVERS.] 
 54.35  Pursuant to the waiver authorization set forth in Public Law 
 54.36  Number 104-59, section 345 (a)(5), a person who operates a 
 55.1   commercial motor vehicle for the purpose of removing snow or ice 
 55.2   from a roadway by plowing, salting, or sanding is not required 
 55.3   to hold a commercial driver's license if the person: 
 55.4      (1) is an employee of a local unit of government with a 
 55.5   population of 3,000 or less; 
 55.6      (2) is operating within the boundaries of the local unit of 
 55.7   government; 
 55.8      (3) holds a valid class D driver's license authorizing the 
 55.9   operation of class B vehicles; and 
 55.10     (4) except in the event of a lawful strike, is temporarily 
 55.11  replacing the employee who normally operates the vehicle but 
 55.12  either is unable to operate the vehicle or is in need of 
 55.13  additional assistance due to a snow emergency as determined by 
 55.14  the local unit of government. 
 55.15     Sec. 52.  Minnesota Statutes 2000, section 171.04, 
 55.16  subdivision 1, is amended to read: 
 55.17     Subdivision 1.  [PERSONS NOT ELIGIBLE.] The department 
 55.18  shall not issue a driver's license: 
 55.19     (1) to any person under 18 years unless: 
 55.20     (i) the applicant is 16 or 17 years of age and has a 
 55.21  previously issued valid license from another state or country or 
 55.22  the applicant has, for the 12 consecutive months preceding 
 55.23  application, held a provisional license and during that time has 
 55.24  incurred (A) no conviction for a violation of section 169A.20, 
 55.25  169A.33, 169A.35, or sections 169A.50 to 169A.53, (B) no 
 55.26  conviction for a crash-related moving violation, and (C) not 
 55.27  more than one conviction for a moving violation that is not 
 55.28  crash related.  "Moving violation" means a violation of a 
 55.29  traffic regulation but does not include a parking violation, 
 55.30  vehicle equipment violation, or warning citation; 
 55.31     (ii) the application for a license is approved by (A) 
 55.32  either parent when both reside in the same household as the 
 55.33  minor applicant or, if otherwise, then (B) the parent or spouse 
 55.34  of the parent having custody or, in the event there is no court 
 55.35  order for custody, then (C) the parent or spouse of the parent 
 55.36  with whom the minor is living or, if subitems (A) to (C) do not 
 56.1   apply, then (D) the guardian having custody of the minor or, in 
 56.2   the event a person under the age of 18 has no living father, 
 56.3   mother, or guardian, or is married or otherwise legally 
 56.4   emancipated, then (E) the minor's adult spouse, adult close 
 56.5   family member, or adult employer; provided, that the approval 
 56.6   required by this item contains a verification of the age of the 
 56.7   applicant and the identity of the parent, guardian, adult 
 56.8   spouse, adult close family member, or adult employer; and 
 56.9      (iii) the applicant presents a certification by the person 
 56.10  who approves the application under item (ii), stating that the 
 56.11  applicant has driven a motor vehicle accompanied by and under 
 56.12  supervision of a licensed driver at least 21 years of age for at 
 56.13  least ten hours during the period of provisional licensure; 
 56.14     (2) to any person who is 18 years of age or younger, unless 
 56.15  the person has applied for, been issued, and possessed the 
 56.16  appropriate instruction permit for a minimum of six months, and, 
 56.17  with respect to a person under 18 years of age, a provisional 
 56.18  license for a minimum of 12 months; 
 56.19     (3) to any person who is 19 years of age or older, unless 
 56.20  that person has applied for, been issued, and possessed the 
 56.21  appropriate instruction permit for a minimum of three months; 
 56.22     (4) to any person whose license has been suspended during 
 56.23  the period of suspension except that a suspended license may be 
 56.24  reinstated during the period of suspension upon the licensee 
 56.25  furnishing proof of financial responsibility in the same manner 
 56.26  as provided in the Minnesota No-Fault Automobile Insurance Act; 
 56.27     (5) to any person whose license has been revoked except 
 56.28  upon furnishing proof of financial responsibility in the same 
 56.29  manner as provided in the Minnesota No-Fault Automobile 
 56.30  Insurance Act and if otherwise qualified; 
 56.31     (6) to any drug-dependent person, as defined in section 
 56.32  254A.02, subdivision 5; 
 56.33     (7) to any person who has been adjudged legally incompetent 
 56.34  by reason of mental illness, mental deficiency, or inebriation, 
 56.35  and has not been restored to capacity, unless the department is 
 56.36  satisfied that the person is competent to operate a motor 
 57.1   vehicle with safety to persons or property; 
 57.2      (8) to any person who is required by this chapter to take a 
 57.3   vision, knowledge, or road examination, unless the person has 
 57.4   successfully passed the examination.  An applicant who fails 
 57.5   four road tests must complete a minimum of six hours of 
 57.6   behind-the-wheel instruction with an approved instructor before 
 57.7   taking the road test again; 
 57.8      (9) to any person who is required under the Minnesota 
 57.9   No-Fault Automobile Insurance Act to deposit proof of financial 
 57.10  responsibility and who has not deposited the proof; 
 57.11     (10) to any person when the commissioner has good cause to 
 57.12  believe that the operation of a motor vehicle on the highways by 
 57.13  the person would be inimical to public safety or welfare; 
 57.14     (11) to any person when, in the opinion of the 
 57.15  commissioner, the person is afflicted with or suffering from a 
 57.16  physical or mental disability or disease that will affect the 
 57.17  person in a manner as to prevent the person from exercising 
 57.18  reasonable and ordinary control over a motor vehicle while 
 57.19  operating it upon the highways; 
 57.20     (12) to a person who is unable to read and understand 
 57.21  official signs regulating, warning, and directing traffic; 
 57.22     (13) to a child for whom a court has ordered denial of 
 57.23  driving privileges under section 260C.201, subdivision 1, or 
 57.24  260B.235, subdivision 5, until the period of denial is 
 57.25  completed; or 
 57.26     (14) to any person whose license has been canceled, during 
 57.27  the period of cancellation. 
 57.28     Sec. 53.  Minnesota Statutes 2000, section 171.05, 
 57.29  subdivision 2, is amended to read: 
 57.30     Subd. 2.  [PERSON LESS THAN 18 YEARS OF AGE.] (a) 
 57.31  Notwithstanding any provision in subdivision 1 to the contrary, 
 57.32  the department may issue an instruction permit to an applicant 
 57.33  who is 15, 16, or 17 years of age and who: 
 57.34     (1) has completed a course of driver education in another 
 57.35  state, has a previously issued valid license from another state, 
 57.36  or is enrolled in either: 
 58.1      (i) a public, private, or commercial driver education 
 58.2   program that is approved by the commissioner of public safety 
 58.3   and that includes classroom and behind-the-wheel training; or 
 58.4      (ii) an approved behind-the-wheel driver education program 
 58.5   when the student is receiving full-time instruction in a home 
 58.6   school within the meaning of sections 120A.22 and 120A.24, the 
 58.7   student is working toward a home-school diploma, the student's 
 58.8   status as a home-school student has been certified by the 
 58.9   superintendent of the school district in which the student 
 58.10  resides, and the student is taking home-classroom driver 
 58.11  training with classroom materials approved by the commissioner 
 58.12  of public safety; 
 58.13     (2) has completed the classroom phase of instruction in the 
 58.14  driver education program; 
 58.15     (3) has passed a test of the applicant's eyesight; 
 58.16     (4) has passed a department-administered test of the 
 58.17  applicant's knowledge of traffic laws; 
 58.18     (5) has completed the required application, which must be 
 58.19  approved by (i) either parent when both reside in the same 
 58.20  household as the minor applicant or, if otherwise, then (ii) the 
 58.21  parent or spouse of the parent having custody or, in the event 
 58.22  there is no court order for custody, then (iii) the parent or 
 58.23  spouse of the parent with whom the minor is living or, if items 
 58.24  (i) to (iii) do not apply, then (iv) the guardian having custody 
 58.25  of the minor or, in the event a person under the age of 18 has 
 58.26  no living father, mother, or guardian, or is married or 
 58.27  otherwise legally emancipated, then (v) the applicant's adult 
 58.28  spouse, adult close family member, or adult employer; provided, 
 58.29  that the approval required by this clause contains a 
 58.30  verification of the age of the applicant and the identity of the 
 58.31  parent, guardian, adult spouse, adult close family member, or 
 58.32  adult employer; and 
 58.33     (6) has paid the fee required in section 171.06, 
 58.34  subdivision 2. 
 58.35     (b) The instruction permit is valid for one year from the 
 58.36  date of application and may be renewed upon payment of a fee 
 59.1   equal to the fee for issuance of an instruction permit under 
 59.2   section 171.06, subdivision 2. 
 59.3      Sec. 54.  Minnesota Statutes 2000, section 171.055, 
 59.4   subdivision 1, is amended to read: 
 59.5      Subdivision 1.  [REQUIREMENTS FOR PROVISIONAL LICENSE.] (a) 
 59.6   The department may issue a provisional license, which must be 
 59.7   distinctive in appearance from a driver's license, to an 
 59.8   applicant who: 
 59.9      (1) has reached the age of 16 years; 
 59.10     (2) during the six months immediately preceding the 
 59.11  application for the provisional license has possessed an 
 59.12  instruction permit and has incurred (i) no convictions for a 
 59.13  violation of section 169A.20, 169A.33, 169A.35, or sections 
 59.14  169A.50 to 169A.53, (ii) no convictions for a crash-related 
 59.15  moving violation, and (iii) no convictions for a moving 
 59.16  violation that is not crash related; 
 59.17     (3) has successfully completed a course of driver education 
 59.18  in accordance with department rules; 
 59.19     (4) completes the required application, which must be 
 59.20  approved by (i) either parent when both reside in the same 
 59.21  household as the minor applicant or, if otherwise, then (ii) the 
 59.22  parent or spouse of the parent having custody or, in the event 
 59.23  there is no court order for custody, then (iii) the parent or 
 59.24  spouse of the parent with whom the minor is living or, if items 
 59.25  (i) to (iii) do not apply, then (iv) the guardian having custody 
 59.26  of the minor or, in the event a person under the age of 18 has 
 59.27  no living father, mother, or guardian, or is married or 
 59.28  otherwise legally emancipated, then (v) the applicant's adult 
 59.29  spouse, adult close family member, or adult employer; provided, 
 59.30  that the approval required by this clause contains a 
 59.31  verification of the age of the applicant and the identity of the 
 59.32  parent, guardian, adult spouse, adult close family member, or 
 59.33  adult employer; 
 59.34     (5) presents certification by the person who approves the 
 59.35  application under clause (4) stating that the applicant has 
 59.36  driven a motor vehicle accompanied by and under the supervision 
 60.1   of a licensed driver at least 21 years of age, for no less than 
 60.2   30 hours, at least ten of which were nighttime hours; and 
 60.3      (6) pays the fee required in section 171.06, subdivision 2. 
 60.4      (b) For purposes of this section, "moving violation" has 
 60.5   the meaning given it in section 171.04, subdivision 1. 
 60.6      Sec. 55.  Minnesota Statutes 2000, section 171.06, 
 60.7   subdivision 1, is amended to read: 
 60.8      Subdivision 1.  [FORMS OF APPLICATION.] Every application 
 60.9   for a Minnesota identification card, for an instruction permit, 
 60.10  for a provisional license, or for a driver's license shall must 
 60.11  be made upon in a form furnished format approved by the 
 60.12  department, and every application shall must be accompanied by 
 60.13  the proper fee.  All applications shall be signed in the 
 60.14  presence of the person authorized to accept the applications, or 
 60.15  the signature on the application may be verified by a notary 
 60.16  public.  All first-time applications and change of status 
 60.17  applications must be signed in the presence of the person 
 60.18  authorized to accept the application, or the signature on the 
 60.19  application may be verified by a notary public.  All 
 60.20  applications requiring evidence of legal presence in the United 
 60.21  States must be signed in the presence of the person authorized 
 60.22  to accept the application, or the signature on the application 
 60.23  may be verified by a notary public. 
 60.24     Sec. 56.  Minnesota Statutes 2000, section 171.06, 
 60.25  subdivision 3, is amended to read: 
 60.26     Subd. 3.  [CONTENTS OF APPLICATION; OTHER INFORMATION.] (a) 
 60.27  An application must: 
 60.28     (1) state the full name, date of birth, sex, and residence 
 60.29  address of the applicant,; 
 60.30     (2) as may be required by the commissioner, contain a 
 60.31  description of the applicant in such manner as the commissioner 
 60.32  may require, and must state whether or not the applicant has 
 60.33  theretofore been licensed as a driver; and, if so, when and by 
 60.34  what state or country and whether any such license has ever been 
 60.35  suspended or revoked, or whether an application has ever been 
 60.36  refused; and, if so, the date of and reason for such suspension, 
 61.1   revocation, or refusal, together with such and any other facts 
 61.2   pertaining to the applicant, the applicant's driving privileges, 
 61.3   and the applicant's ability to operate a motor vehicle with 
 61.4   safety as may be required by the commissioner.  An application; 
 61.5      (3) for a class C, class B, or class A driver's license 
 61.6   also must, state the applicant's social security number.  An 
 61.7   application or, for a class D driver's license must, have a 
 61.8   space for the applicant's social security number and state that 
 61.9   providing the number is optional, or otherwise convey that the 
 61.10  applicant is not required to enter the social security number.  
 61.11  The application form must; 
 61.12     (4) contain a space where the applicant may indicate a 
 61.13  desire to make an anatomical gift according to paragraph (b); 
 61.14  and 
 61.15     (5) contain a notification to the applicant of the 
 61.16  availability of a living will/health care directive designation 
 61.17  on the license under section 171.07, subdivision 7.  
 61.18     (b) If the applicant does not indicate a desire to make an 
 61.19  anatomical gift when the application is made, the applicant must 
 61.20  be offered a donor document in accordance with section 171.07, 
 61.21  subdivision 5.  The application form must contain statements 
 61.22  sufficient to comply with the requirements of the Uniform 
 61.23  Anatomical Gift Act (1987), sections 525.921 to 525.9224, so 
 61.24  that execution of the application or donor document will make 
 61.25  the anatomical gift as provided in section 171.07, subdivision 
 61.26  5, for those indicating a desire to make an anatomical 
 61.27  gift.  The application form must contain a notification to the 
 61.28  applicant of the availability of a living will/health care 
 61.29  directive designation on the license under section 171.07, 
 61.30  subdivision 7.  The application must be in the form prepared by 
 61.31  the commissioner.  The application must be accompanied by 
 61.32  information describing Minnesota laws regarding anatomical gifts 
 61.33  and the need for and benefits of anatomical gifts. 
 61.34     (b) (c) The application form must be accompanied also by 
 61.35  a pamphlet information containing relevant facts relating to:  
 61.36     (1) the effect of alcohol on driving ability; 
 62.1      (2) the effect of mixing alcohol with drugs; 
 62.2      (3) the laws of Minnesota relating to operation of a motor 
 62.3   vehicle while under the influence of alcohol or a controlled 
 62.4   substance; and 
 62.5      (4) the levels of alcohol-related fatalities and accidents 
 62.6   in Minnesota and of arrests for alcohol-related violations. 
 62.7      (c) The application form must also be accompanied by a 
 62.8   pamphlet describing Minnesota laws regarding anatomical gifts 
 62.9   and the need for and benefits of anatomical gifts. 
 62.10     Sec. 57.  Minnesota Statutes 2001 Supplement, section 
 62.11  171.07, subdivision 1, is amended to read: 
 62.12     Subdivision 1.  [LICENSE; CONTENTS.] (a) Upon the payment 
 62.13  of the required fee, the department shall issue to every 
 62.14  qualifying applicant a license designating the type or class of 
 62.15  vehicles the applicant is authorized to drive as applied for.  
 62.16  This license must bear a distinguishing number assigned to the 
 62.17  licensee, the full name, date of birth, residence address and 
 62.18  permanent mailing address if different, a description of the 
 62.19  licensee in such a manner as the commissioner deems necessary, 
 62.20  and a space upon which the licensee shall write the usual 
 62.21  signature and the date of birth of the licensee.  No license is 
 62.22  valid until it has been signed by unless it bears the usual 
 62.23  signature of the licensee.  Except in the case of an instruction 
 62.24  permit, Every license must bear a colored photograph or an 
 62.25  electronically produced image of the licensee. 
 62.26     (b) Every license issued to an applicant under the age of 
 62.27  21 must be of a distinguishing color and plainly marked 
 62.28  "Under-21." 
 62.29     (c) The department shall use such process or processes in 
 62.30  the issuance of licenses issuing a license that 
 62.31  prohibits prohibit, as near nearly as possible, the ability to 
 62.32  alter or reproduce the licenses a license, or prohibit the 
 62.33  ability to superimpose a photograph or electronically produced 
 62.34  image on the licenses a license, without ready detection. 
 62.35     (d) A license issued to an applicant age 65 or over must be 
 62.36  plainly marked "senior" if requested by the applicant. 
 63.1      Sec. 58.  Minnesota Statutes 2000, section 171.07, 
 63.2   subdivision 3, is amended to read: 
 63.3      Subd. 3.  [IDENTIFICATION CARD; FEE.] (a) Upon payment of 
 63.4   the required fee, the department shall issue to every qualifying 
 63.5   applicant therefor a Minnesota identification card.  The 
 63.6   department may not issue a Minnesota identification card to a 
 63.7   person who has a driver's license, other than an instruction 
 63.8   permit or a limited license.  The card must bear a 
 63.9   distinguishing number assigned to the applicant,; a colored 
 63.10  photograph or an electronically produced image, of the 
 63.11  applicant; the applicant's full name, date of birth, and 
 63.12  residence address,; a description of the applicant in the manner 
 63.13  as the commissioner deems necessary,; and a space upon which the 
 63.14  applicant shall write the usual signature and the date of birth 
 63.15  of the applicant with pen and ink. 
 63.16     (b) Each identification card issued to an applicant under 
 63.17  the age of 21 must be of a distinguishing color and plainly 
 63.18  marked "Under-21." 
 63.19     (b) (c) Each Minnesota identification card must be plainly 
 63.20  marked "Minnesota identification card - not a driver's license." 
 63.21     (c) (d) The fee for a Minnesota identification card is 50 
 63.22  cents when issued to:  a person who is mentally retarded, as 
 63.23  defined in section 252A.02, subdivision 2; a physically disabled 
 63.24  person, as defined in section 169.345, subdivision 2; or, a 
 63.25  person with mental illness, as described in section 245.462, 
 63.26  subdivision 20, paragraph (c). 
 63.27     Sec. 59.  Minnesota Statutes 2000, section 171.13, 
 63.28  subdivision 2, is amended to read: 
 63.29     Subd. 2.  [EXAMINATION UPON RENEWAL.] The department shall 
 63.30  issue a driver's license shall be issued upon renewal when the 
 63.31  applicant has passed an examination consisting of a screening of 
 63.32  the applicant's eyesight.  Screening of eyesight required by 
 63.33  this subdivision shall does not be construed as constitute the 
 63.34  practice of optometry as defined in section 148.56.  The 
 63.35  commissioner may adopt rules to administer this subdivision.  
 63.36     Sec. 60.  Minnesota Statutes 2000, section 171.165, is 
 64.1   amended to read: 
 64.2      171.165 [COMMERCIAL DRIVER'S LICENSE, DISQUALIFICATION.] 
 64.3      Subdivision 1.  [FIRST VIOLATION.] Subject to section 
 64.4   171.166, the commissioner shall disqualify a person from 
 64.5   operating commercial motor vehicles for one year upon receiving 
 64.6   a record of the first conviction of the person for committing a 
 64.7   violation of any of the following in the commission of which 
 64.8   offenses while operating a commercial motor vehicle was used: 
 64.9      (1) section 169A.20 or 169A.31; 
 64.10     (2) section 169.09, subdivision 1 or 2; 
 64.11     (3) a felony, other than a felony described in subdivision 
 64.12  3, paragraph (a), clause (3) (2), item (ii); or 
 64.13     (4) driving with a revoked, suspended, canceled, denied, or 
 64.14  disqualified commercial driver's license; 
 64.15     (5) causing a fatality through the negligent or criminal 
 64.16  operation of a commercial motor vehicle; or 
 64.17     (6) an offense committed in another state that would be 
 64.18  grounds for disqualification under this subdivision or 
 64.19  subdivision 2 if committed in Minnesota. 
 64.20     Subd. 2.  [IMPLIED CONSENT REVOCATION.] The commissioner 
 64.21  shall disqualify a person from operating commercial motor 
 64.22  vehicles for one year from the effective date of a revocation 
 64.23  under section 169A.52 or a statute or ordinance from another 
 64.24  state in conformity with it, if the person was driving, 
 64.25  operating, or in physical control of a commercial motor vehicle 
 64.26  at the time of the incident on which the revocation is based. 
 64.27     Subd. 3.  [GRAVE OR MULTIPLE OFFENSES.] (a) Subject to 
 64.28  section 171.166, the commissioner shall disqualify a person from 
 64.29  operating commercial motor vehicles for: 
 64.30     (1) not less than three years, for a conviction or 
 64.31  revocation set forth in subdivision 1 or 2 committed during the 
 64.32  transportation of hazardous materials; 
 64.33     (2) not less than ten years life, if the person is 
 64.34  convicted for a conviction: 
 64.35     (i) of a second or subsequent time of an disqualifying 
 64.36  offense set forth in subdivision 1 or 2, a statute of another 
 65.1   state or ordinance in conformity with it, or any combination of 
 65.2   those offenses, arising from separate incidents; or 
 65.3      (3) life, if the person is convicted (ii) under chapter 152 
 65.4   of a felony involving the manufacture, sale, or distribution of 
 65.5   a controlled substance, or involving the possession of a 
 65.6   controlled substance with intent to manufacture, sell, or 
 65.7   distribute it, and the person is found to have used a commercial 
 65.8   motor vehicle in the commission of the felony. 
 65.9      (b) A person whose commercial motor vehicle driving 
 65.10  privileges have been disqualified under paragraph (a), clause 
 65.11  (2), item (i), may apply for reinstatement after ten years.  A 
 65.12  person whose commercial motor vehicle driving privileges have 
 65.13  been disqualified under paragraph (a), clause (2), item (ii), 
 65.14  may not apply for reinstatement. 
 65.15     (c) A person whose commercial motor vehicle driving 
 65.16  privileges have been reinstated under paragraph (b) and who 
 65.17  subsequently commits a disqualifying offense set forth in 
 65.18  subdivision 1 or 2, or any combination of those offenses, may 
 65.19  not apply for reinstatement. 
 65.20     Subd. 4.  [SERIOUS TRAFFIC VIOLATION.] On receiving a 
 65.21  record of conviction and subject to section 171.166, the 
 65.22  commissioner shall disqualify a person from operating commercial 
 65.23  motor vehicles for 60 days if the person is convicted of two 
 65.24  serious traffic violations, or 120 days if convicted of three 
 65.25  serious traffic violations.  The violations must involve 
 65.26  separate incidents and must have been committed in a commercial 
 65.27  motor vehicle within a three-year period.  For purposes of this 
 65.28  subdivision, a serious traffic offense violation includes the 
 65.29  following: 
 65.30     (1) following too closely under section 169.18, subdivision 
 65.31  8; 
 65.32     (2) erratic lane change under sections 169.18, subdivisions 
 65.33  3 and 7; and 169.19, subdivision 4; 
 65.34     (3) operating the commercial vehicle at a speed 15 miles 
 65.35  per hour or more above the posted speed limit; 
 65.36     (4) reckless or careless driving under section 169.13; 
 66.1      (5) fleeing a peace officer under section 609.487; and 
 66.2      (6) a violation of a moving traffic statute of Minnesota or 
 66.3   any state, or an ordinance in conformity with a Minnesota 
 66.4   statute, that arose in connection with a fatal accident; 
 66.5      (7) operating a commercial motor vehicle without the proper 
 66.6   class of commercial driver's license or endorsements for the 
 66.7   type of vehicle being operated; and 
 66.8      (8) operating a commercial motor vehicle without a 
 66.9   commercial driver's license in immediate possession, unless the 
 66.10  person provides proof to the court that, on the date of the 
 66.11  citation, the person held a valid commercial driver's license of 
 66.12  the proper class and with the proper endorsements. 
 66.13     Subd. 4a.  [VIOLATION OF OUT-OF-SERVICE ORDER.] (a) The 
 66.14  commissioner shall disqualify a person from operating a 
 66.15  commercial motor vehicle for not less than: 
 66.16     (1) 90 days nor more than one year if the operator is 
 66.17  convicted of a first violation of an out-of-service order; 
 66.18     (2) one year nor more than five years if, during any 
 66.19  ten-year period, the operator is convicted of two violations of 
 66.20  out-of-service orders in separate incidents; and 
 66.21     (3) three years nor more than five years if, during any 
 66.22  ten-year period, the operator is convicted of three or more 
 66.23  violations of out-of-service orders in separate incidents. 
 66.24     (b) The commissioner shall notify the commissioner of 
 66.25  transportation of each disqualification under this subdivision. 
 66.26     Subd. 4b.  [RAILROAD GRADE CROSSING VIOLATION.] (a) The 
 66.27  commissioner shall disqualify a person from operating a 
 66.28  commercial motor vehicle for not less than: 
 66.29     (1) 60 days if the person is convicted of a first railroad 
 66.30  grade crossing violation; 
 66.31     (2) 120 days if, during any three-year period, the person 
 66.32  is convicted of two railroad grade crossing violations arising 
 66.33  from separate incidents; 
 66.34     (3) one year if, during any three-year period, the person 
 66.35  is convicted of three or more railroad grade crossing violations 
 66.36  arising from separate incidents. 
 67.1      (b) For the purposes of the subdivision, "railroad grade 
 67.2   crossing violation" means a violation of section 169.26 or 
 67.3   169.28, Code of Federal Regulations, title 49, section 392.10, 
 67.4   or a statute or ordinance from another state in conformity with 
 67.5   those sections, while operating a commercial motor vehicle. 
 67.6      Subd. 5.  [RULES.] The commissioner shall adopt rules to 
 67.7   administer this section.  The rules must include procedures for 
 67.8   issuing class D licenses to persons who have been disqualified 
 67.9   from operating commercial motor vehicles but whose drivers' 
 67.10  licenses have not otherwise been revoked, suspended, canceled, 
 67.11  or denied. 
 67.12     Subd. 6.  [EXEMPTIONS.] A disqualification shall not be 
 67.13  imposed under this section on a recreational equipment operator, 
 67.14  farmer, or firefighter operating a commercial motor vehicle 
 67.15  within the scope of section 171.02, subdivision 2, paragraph (b).
 67.16     Subd. 7.  [SCOPE.] This section applies to offenses 
 67.17  committed, and revocations imposed for incidents occurring, on 
 67.18  or after January 1, 1990. 
 67.19     Sec. 61.  [INTENT.] 
 67.20     Nothing in section 9, subdivision 1a, paragraphs (a) and 
 67.21  (c) through (i), and related repeals elsewhere in that section, 
 67.22  is intended to increase or decrease the scope or extent of any 
 67.23  category of licensing authorized under Minnesota Statutes, 
 67.24  section 168.27. 
 67.25     Sec. 62.  [EXEMPTION FROM MATCHING REQUIREMENT.] 
 67.26     All money received under Public Law Number 107-71, the 
 67.27  Aviation and Transportation Security Act, is exempt from the 
 67.28  matching requirements of Minnesota Statutes, section 360.305, 
 67.29  subdivision 4. 
 67.30     Sec. 63.  [BUS SERVICE AUTHORIZED.] 
 67.31     Notwithstanding Laws 2001, First Special Session chapter 8, 
 67.32  article 1, section 2, subdivision 7, the commissioner may spend 
 67.33  up to $400,000 of trunk highway funds in fiscal year 2003 to pay 
 67.34  the operating costs of bus service to mitigate the traffic 
 67.35  impacts of the construction project involving marked interstate 
 67.36  highway 494, the Wakota bridge, and marked trunk highway 61. 
 68.1      Sec. 64.  [REPEALER.] 
 68.2      Minnesota Statutes 2000, section 171.30, subdivision 3, is 
 68.3   repealed. 
 68.4                              ARTICLE 2 
 68.5                        MOTOR CARRIER FUEL TAX 
 68.6      Section 1.  [LEGISLATIVE FINDINGS AND POLICY.] 
 68.7      (a) The legislature of the state of Minnesota finds that, 
 68.8   for the benefit of the state, other jurisdictions, and the motor 
 68.9   carrier industry, the state should enter into and endorse an 
 68.10  international agreement pertaining to the registration and fuel 
 68.11  taxation of motor carriers operating in interstate commerce.  
 68.12  The purpose of such agreements and compacts are to ensure proper 
 68.13  funding of the state's highway infrastructure through the 
 68.14  payment and distribution of revenue by and between member 
 68.15  jurisdictions and to simplify the registration and taxation 
 68.16  process for the motor carriers.  
 68.17     (b) With this understanding, the state adopts these core 
 68.18  principles to international registration and taxation agreements:
 68.19     (1) the concept of a single-base jurisdiction for all motor 
 68.20  carriers; 
 68.21     (2) the concept that the definition of a taxpayer will be 
 68.22  uniform among member jurisdictions; 
 68.23     (3) the concept that each member jurisdiction retains its 
 68.24  taxing authority under its specific tax-enabling laws; 
 68.25     (4) the principle of apportioned registration and fuel 
 68.26  taxes; 
 68.27     (5) the principle of one registration plate; 
 68.28     (6) the principle of reciprocal granting of fees and 
 68.29  granting of reciprocity; 
 68.30     (7) the discharge of registrant responsibilities; and 
 68.31     (8) the operation under apportioned registration and fuel 
 68.32  taxes. 
 68.33     Sec. 2.  [168D.01] [DEFINITIONS.] 
 68.34     Subdivision 1.  [SCOPE.] As used in this chapter, the 
 68.35  following terms have the meanings given them in this section. 
 68.36     Subd. 2.  [CANCELLATION.] "Cancellation" means the 
 69.1   voluntary termination of a license and its provisions. 
 69.2      Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 69.3   commissioner of public safety of the state of Minnesota, acting 
 69.4   directly or through duly authorized agents. 
 69.5      Subd. 4.  [JURISDICTION.] "Jurisdiction" means a state of 
 69.6   the United States, the District of Columbia, a province or 
 69.7   territory of Canada, and any other member jurisdiction of the 
 69.8   International Fuel Tax Agreement (IFTA) compact as approved by 
 69.9   Congress in the Intermodal Surface Transportation Efficiency Act 
 69.10  (ISTEA). 
 69.11     Subd. 5.  [MOTOR CARRIER.] "Motor carrier" means an 
 69.12  individual, corporation, partnership, association, trust, or 
 69.13  other entity, however organized, operating one or more qualified 
 69.14  motor vehicles as a part of its interstate business operations. 
 69.15     Subd. 6.  [MOTOR FUEL.] "Motor fuel" means an agent, 
 69.16  regardless of its composition or properties, used to propel a 
 69.17  qualified motor vehicle. 
 69.18     Subd. 7.  [OPERATION.] "Operation" means operation of 
 69.19  qualified motor vehicles whether loaded or empty, whether for 
 69.20  compensation or not for compensation, and whether owned by or 
 69.21  leased to the motor carrier who operates them or causes them to 
 69.22  be operated in two or more jurisdictions. 
 69.23     Subd. 8.  [QUALIFIED MOTOR VEHICLE.] (a) "Qualified motor 
 69.24  vehicle" means a motor vehicle that is used, designed, or 
 69.25  maintained to transport persons or property and that: 
 69.26     (1) has two axles and a gross vehicle weight or registered 
 69.27  gross vehicle weight exceeding 26,000 pounds; 
 69.28     (2) has three or more axles regardless of weight; or 
 69.29     (3) is used in combination, when the weight of the 
 69.30  combination exceeds 26,000 pounds gross vehicle or registered 
 69.31  gross vehicle weight.  
 69.32     (b) Qualified motor vehicle does not include a recreational 
 69.33  vehicle or any vehicle exempt from registration under section 
 69.34  168.012, subdivision 1, paragraph (a), clause (1). 
 69.35     Subd. 9.  [REVOCATION.] "Revocation" means the withdrawal 
 69.36  of a license and privileges by the commissioner of public safety.
 70.1      Subd. 10.  [SUSPENSION.] "Suspension" means the temporary 
 70.2   removal of privileges granted to the licensee by the 
 70.3   commissioner of public safety. 
 70.4      Sec. 3.  [168D.02] [FUEL TAX COMPACT.] 
 70.5      Subdivision 1.  [AUTHORITY.] (a) The commissioner of public 
 70.6   safety may enter into an agreement or arrangement with the duly 
 70.7   authorized representative of another jurisdiction or make an 
 70.8   independent declaration granting to motor carriers of qualified 
 70.9   motor vehicles properly registered or licensed in another member 
 70.10  jurisdiction benefits, privileges, and exemptions from paying, 
 70.11  wholly or partially, fuel taxes, fees, or other charges imposed 
 70.12  for operating the vehicles under the laws of Minnesota.  The 
 70.13  agreement, arrangement, or declaration may impose terms and 
 70.14  conditions consistent with federal and state laws and 
 70.15  regulations. 
 70.16     (b) The commissioner of public safety may ratify and 
 70.17  effectuate an international fuel tax agreement or other fuel tax 
 70.18  agreement in accordance with state and federal authorities.  The 
 70.19  commissioner's authority includes collecting fuel taxes due, 
 70.20  issuing fuel licenses, issuing refunds, conducting audits, 
 70.21  assessing penalties and interest, issuing fuel trip permits, 
 70.22  issuing decals, and suspending or denying licensing. 
 70.23     (c) Based on these powers, the commissioner and the state 
 70.24  of Minnesota have entered into a formal agreement with other 
 70.25  states of the United States, the District of Columbia, provinces 
 70.26  and territories of Canada, and any other member jurisdiction of 
 70.27  the International Fuel Tax Agreement (IFTA) compact as approved 
 70.28  by Congress in the Intermodal Surface Transportation Efficiency 
 70.29  Act (ISTEA) to assess and collect fuel tax in a uniform and 
 70.30  consistent manner across jurisdictions. 
 70.31     Subd. 2.  [RECIPROCITY.] (a) As a member of the IFTA 
 70.32  compact, the state of Minnesota recognizes and affirms the 
 70.33  provisions set forth in that agreement. 
 70.34     (b) Under the provisions of this agreement, the state of 
 70.35  Minnesota shall provide an open exchange of information between 
 70.36  member jurisdictions and the IFTA clearinghouse but reserves the 
 71.1   right to stipulate the level of security and privacy of the 
 71.2   information in transmission and storage to protect the privacy 
 71.3   rights of its citizens according to chapters 13 through 13D. 
 71.4      (c) An agreement or arrangement must be in writing and 
 71.5   provide that when a qualified motor vehicle properly licensed 
 71.6   for fuel in the state of Minnesota is operated on highways of 
 71.7   another member jurisdiction, it must receive exemptions, 
 71.8   benefits, and privileges of a similar kind or to a similar 
 71.9   degree as are extended to a qualified motor vehicle properly 
 71.10  licensed for fuel in that member jurisdiction while it is being 
 71.11  operated in the state of Minnesota. 
 71.12     (d) A declaration must be in writing and must contemplate 
 71.13  and provide for mutual benefits, reciprocal privileges, or 
 71.14  equitable treatment of the motor carrier of a qualified motor 
 71.15  vehicle registered for fuel in Minnesota and the other member 
 71.16  jurisdictions.  In the judgment of the commissioner of public 
 71.17  safety, an agreement, arrangement, or declaration must be in the 
 71.18  best interest of Minnesota and its citizens and must be fair and 
 71.19  equitable regarding the benefits that the agreement brings to 
 71.20  the economy of Minnesota. 
 71.21     Sec. 4.  [168D.03] [COMPLIANCE WITH MINNESOTA LAWS.] 
 71.22     Agreements, arrangements, and declarations made under 
 71.23  authority of this chapter must contain a provision specifying 
 71.24  that no fuel license, or exemption issued or accruing under the 
 71.25  license, excuses the motor carrier of a qualified motor vehicle 
 71.26  from compliance with Minnesota laws. 
 71.27     Sec. 5.  [168D.04] [TAXING AUTHORITY.] 
 71.28     Subdivision 1.  [AGREEMENT TERMS.] (a) Under the provisions 
 71.29  of an agreement entered into according to section 168D.02, each 
 71.30  member shall retain its sovereign authority to determine tax 
 71.31  rates and exemptions and to exercise other substantive tax 
 71.32  authority.  
 71.33     (b) In accordance with federal and state law, the agreement 
 71.34  must provide for: 
 71.35     (1) determining the base jurisdiction for users; 
 71.36     (2) users' records requirements; 
 72.1      (3) audit procedures; 
 72.2      (4) exchanging information; 
 72.3      (5) eligibility of persons for tax licensing; 
 72.4      (6) defining qualified motor vehicles; 
 72.5      (7) determining if bonding is required; 
 72.6      (8) specifying reporting requirements and periods, 
 72.7   including defining uniform penalty and interest rates for late 
 72.8   reporting; 
 72.9      (9) determining methods for collecting and forwarding motor 
 72.10  fuel taxes and penalties to another jurisdiction; 
 72.11     (10) display of identification indicating compliance with 
 72.12  the agreement; and 
 72.13     (11) other provisions to facilitate the administration of 
 72.14  the agreement. 
 72.15     (c) Each jurisdiction shall audit the records of persons 
 72.16  based in the jurisdiction to determine if the motor fuel taxes 
 72.17  due each jurisdiction are properly reported and paid. 
 72.18     Subd. 2.  [FUEL ROAD TAX IMPOSED.] (a) Every motor carrier 
 72.19  shall pay a road tax calculated on the amount of motor fuel 
 72.20  consumed in the motor carrier's operations on highways within 
 72.21  Minnesota.  The tax rate is imposed at the rate and conditions 
 72.22  specified in chapter 296A. 
 72.23     (b) The amount of motor fuel consumed in the operations of 
 72.24  a motor carrier on highways within Minnesota is determined by 
 72.25  dividing the miles traveled within Minnesota by the average 
 72.26  miles per gallon. 
 72.27     (c) The average miles per gallon for a motor carrier's 
 72.28  qualified motor vehicles is determined by dividing the total 
 72.29  miles traveled by the total motor fuel consumed. 
 72.30     Sec. 6.  [168D.05] [MOTOR CARRIER FUEL LICENSE.] 
 72.31     (a) A motor carrier registered under section 168.187, 
 72.32  operating a qualified motor vehicle upon the highways of 
 72.33  Minnesota, and not qualifying for exemption under this chapter, 
 72.34  may not operate the vehicle unless and until issued a fuel 
 72.35  license under this chapter or until the motor carrier has 
 72.36  obtained a temporary fuel permit. 
 73.1      (b) A license may be issued to a person qualifying as a 
 73.2   motor carrier who applies and pays to the commissioner the 
 73.3   license fees required by this chapter. 
 73.4      (c) A license is valid for a calendar year unless 
 73.5   surrendered by the motor carrier or canceled, suspended, or 
 73.6   revoked by the commissioner.  All licenses expire on December 31 
 73.7   of each calendar year and may be renewed by applying to the 
 73.8   commissioner and paying the licensing fee. 
 73.9      (d) The motor carrier is required to make legible copies of 
 73.10  the license and one copy must be carried in each qualified motor 
 73.11  vehicle while it is being operated in Minnesota and in all 
 73.12  member jurisdictions. 
 73.13     (e) Each licensee shall acknowledge and agree upon license 
 73.14  application to be bound by the obligations and duties of 
 73.15  licensed motor carriers under the laws, rules, and regulations 
 73.16  adopted by the member jurisdictions to administer the 
 73.17  International Fuel Tax Agreement.  Failure to adhere to these 
 73.18  obligations and duties may result in cancellation, suspension, 
 73.19  or revocation of the license. 
 73.20     Sec. 7.  [168D.06] [FUEL LICENSE FEES.] 
 73.21     License fees paid to the commissioner under the 
 73.22  International Fuel Tax Agreement must be deposited in the 
 73.23  highway user tax distribution fund.  The commissioner shall 
 73.24  charge an annual fuel license fee of $15, and an annual 
 73.25  application filing fee of $13 for quarterly reporting of fuel 
 73.26  tax. 
 73.27     Sec. 8.  [168D.07] [FUEL DECAL FEE.] 
 73.28     The commissioner shall issue a decal or other 
 73.29  identification to indicate compliance with the International 
 73.30  Fuel Tax Agreement.  The commissioner shall establish a charge 
 73.31  to cover the cost of issuing the decal or other identification 
 73.32  according to section 16A.1285, subdivision 4a.  Decal or other 
 73.33  identification charges paid to the commissioner under this 
 73.34  subdivision must be deposited in the highway user tax 
 73.35  distribution fund. 
 73.36     Sec. 9.  [168D.08] [MOTOR CARRIER FUEL TAX RETURNS.] 
 74.1      Every motor carrier subject to the fuel tax shall, on or 
 74.2   before the last day of April, July, October, and January, file 
 74.3   with the commissioner, in the format and manner prescribed, tax 
 74.4   returns of operations during the previous three months. 
 74.5      Sec. 10.  [168D.09] [CREDIT OR REFUND.] 
 74.6      Under this section, the commissioner shall allow a credit 
 74.7   or refund to a motor carrier for taxes paid to any member 
 74.8   jurisdiction that imposes a tax upon motor fuel purchased or 
 74.9   obtained in Minnesota and member jurisdictions and used on the 
 74.10  highways of Minnesota and other member jurisdictions.  Every 
 74.11  motor carrier claiming a refund under this section shall file a 
 74.12  claim in the format and manner prescribed by the commissioner or 
 74.13  take the credit on a subsequent tax return. 
 74.14     Sec. 11.  [168D.10] [MOTOR CARRIER RECORDS.] 
 74.15     Subdivision 1.  [MAINTENANCE.] Every motor carrier shall 
 74.16  maintain records to substantiate information reported on the 
 74.17  required tax returns.  The records must be kept in a format 
 74.18  prescribed by the commissioner. 
 74.19     Subd. 2.  [PRESERVATION.] Records must be preserved for 
 74.20  four years from the tax return due date or filing date, 
 74.21  whichever is later.  Preservation of the records must be in a 
 74.22  manner that ensures their security, integrity, and availability 
 74.23  for inspection by the commissioner or a representative of a 
 74.24  member jurisdiction. 
 74.25     Subd. 3.  [DESTRUCTION.] Destruction of records may not be 
 74.26  completed until the statutory period is met or upon written 
 74.27  consent from the commissioner.  A request for early destruction 
 74.28  of records must be made in writing to the commissioner 
 74.29  identifying the necessity and reasons for the request. 
 74.30     Sec. 12.  [168D.11] [AUDITING AND REPORTING.] 
 74.31     Subdivision 1.  [AUTHORITY AND OBLIGATION.] The 
 74.32  commissioner has the right and obligation to audit the records 
 74.33  of persons based in Minnesota to determine if the motor fuel 
 74.34  taxes due each jurisdiction are properly reported and paid, with 
 74.35  authority to assess proper tax liability with applicable penalty 
 74.36  and interest. 
 75.1      Subd. 2.  [REPORTING TO OTHER JURISDICTIONS.] Minnesota, 
 75.2   along with all other member jurisdictions, shall forward the 
 75.3   findings of any fuel tax audits performed to each jurisdiction 
 75.4   in which the person has taxable use of motor fuels.  The 
 75.5   commissioner may forward to officers of another member 
 75.6   jurisdiction any information in the commissioner's possession 
 75.7   relating to the manufacture, receipt, sale, use, transportation, 
 75.8   or shipment of motor fuels by any person.  The commissioner may 
 75.9   disclose to officers of another member jurisdiction the location 
 75.10  of offices, motor vehicles, and other real and personal property 
 75.11  of users of motor fuels. 
 75.12     Subd. 3.  [COOPERATIVE AUDIT.] (a) The commissioner of 
 75.13  public safety may make arrangements with, and may enter into 
 75.14  agreements with, the appropriate authorities of other Minnesota 
 75.15  state agencies and other member jurisdictions having statutes 
 75.16  similar to this act for the cooperative audit of motor carriers' 
 75.17  reports and returns. 
 75.18     (b) In performing a cooperative audit, in whole or in part, 
 75.19  the officers and employees of the other Minnesota state agencies 
 75.20  or member jurisdictions are considered authorized agents of 
 75.21  Minnesota for audit purposes, and their audits have the same 
 75.22  force and effect as audits conducted by Minnesota auditors. 
 75.23     Sec. 13.  [168D.12] [MOTOR CARRIER TEMPORARY FUEL PERMIT.] 
 75.24     A motor carrier may obtain a trip permit that authorizes an 
 75.25  unlicensed motor carrier to operate a qualified motor vehicle in 
 75.26  Minnesota for five consecutive days beginning and ending on the 
 75.27  dates specified on the face of the permit.  The fee for the 
 75.28  permit is $25.  The permit must be issued in lieu of a license 
 75.29  if in the course of operations a motor carrier operates on 
 75.30  Minnesota highways. 
 75.31     Sec. 14.  [168D.13] [ACTION TO AVOID OR EVADE FUEL TAX.] 
 75.32     Subdivision 1.  [DETERMINATION AND ASSESSMENT.] If the 
 75.33  commissioner ascertains that a motor carrier acts to obstruct or 
 75.34  make ineffectual proceedings to assess or collect the road taxes 
 75.35  due, the commissioner may immediately make an assessment of tax 
 75.36  estimated to be due, whether or not any report is then due by 
 76.1   law. 
 76.2      Subd. 2.  [ASSESSMENT NOTICE AND COLLECTION; 
 76.3   IMPOUNDMENT.] (a) The commissioner may then proceed under this 
 76.4   assessment to collect the tax, or compel security for the taxes 
 76.5   owing, and shall give notice of the commissioner's finding under 
 76.6   subdivision 1 to the motor carrier, together with a demand for 
 76.7   an immediate payment of the tax.  
 76.8      (b) The commissioner is also authorized to impound 
 76.9   qualified motor vehicles of motor carriers in violation of this 
 76.10  subdivision.  The vehicle must be released either upon paying 
 76.11  all taxes, penalties, and interest that may be due or depositing 
 76.12  a bond or security to assure the payment of taxes, penalties, 
 76.13  and interest. 
 76.14     Sec. 15.  [168D.14] [ENFORCEMENT POWERS.] 
 76.15     Subdivision 1.  [COMMISSIONER OF PUBLIC SAFETY.] The 
 76.16  commissioner is authorized and directed to enforce this 
 76.17  chapter.  In addition, the commissioner of public safety is 
 76.18  authorized and directed to use the Minnesota state patrol to 
 76.19  assist in the enforcement of this chapter.  
 76.20     Subd. 2.  [COMMISSIONER OF TRANSPORTATION.] The 
 76.21  commissioner of transportation is authorized and directed to 
 76.22  enforce sections 168D.05 and 168D.12 as provided in section 
 76.23  221.221. 
 76.24     Subd. 3.  [STATE PATROL.] The officers of the Minnesota 
 76.25  state patrol, in addition to all other powers granted to them by 
 76.26  Minnesota Statutes, have the power of making arrests, service of 
 76.27  process, and appearing in court in all matters and things 
 76.28  relating to this chapter and its administration and enforcement. 
 76.29     Sec. 16.  [168D.15] [DELINQUENT FILING OR PAYMENT.] 
 76.30     If a motor carrier licensed under this section is 
 76.31  delinquent in either filing or paying the International Fuel Tax 
 76.32  Agreement (IFTA) report or billing for more than 30 days, or 
 76.33  paying the international registration plan billing under section 
 76.34  168.187 for more than 30 days, the motor carrier, after ten 
 76.35  days' written notice, is subject to suspension of the 
 76.36  apportioned license plates and the IFTA license. 
 77.1      Sec. 17.  [168D.16] [TRANSFERRING FUNDS TO PAY DELINQUENT 
 77.2   FEE.] 
 77.3      If a motor carrier licensed under this chapter is 
 77.4   delinquent in either filing or paying the International Fuel Tax 
 77.5   Agreement (IFTA) report or billing for more than 30 days, or 
 77.6   paying the international registration plan billing under section 
 77.7   168.187 for more than 30 days, the commissioner shall authorize 
 77.8   any credit in either the IFTA account or the international 
 77.9   registration plan account to be used to offset the liability in 
 77.10  either the IFTA account or the international registration plan 
 77.11  account. 
 77.12     Sec. 18.  [168D.17] [EXEMPTIONS.] 
 77.13     This chapter does not apply to recreational equipment as 
 77.14  defined in section 168.011. 
 77.15     Sec. 19.  [168D.18] [RULES.] 
 77.16     The commissioner may adopt rules relating to the 
 77.17  administration and enforcement of this chapter. 
 77.18     Sec. 20.  Minnesota Statutes 2000, section 168.187, 
 77.19  subdivision 26, is amended to read: 
 77.20     Subd. 26.  [DELINQUENT FILING OR PAYMENT.] If a fleet owner 
 77.21  or owner-operator licensed under this section and section 
 77.22  296A.28 chapter 168D is delinquent in either filing or paying 
 77.23  the international fuel tax agreement reports for more than 30 
 77.24  days, or paying the international registration plan billing for 
 77.25  more than 30 days, the fleet owner or owner-operator, after ten 
 77.26  days' written notice, is subject to suspension of the 
 77.27  apportioned license plates and the international fuel tax 
 77.28  agreement license. 
 77.29     Sec. 21.  Minnesota Statutes 2001 Supplement, section 
 77.30  221.221, subdivision 2, is amended to read: 
 77.31     Subd. 2.  [ENFORCEMENT POWERS.] Transportation program 
 77.32  specialists and hazardous material program specialists of the 
 77.33  department, for the purpose of enforcing the provisions of this 
 77.34  chapter, sections 169.781 to 169.783 relating to commercial 
 77.35  vehicle inspections, and section 296A.27, subdivisions 6 and 12, 
 77.36  sections 168D.05 and 168D.12 relating to motor carrier licenses 
 78.1   and trip permits, and the applicable rules, orders, or 
 78.2   directives of the commissioner of transportation and the 
 78.3   commissioner of revenue, issued under this chapter and 
 78.4   chapter 168D or 296A, but for no other purpose, have the powers 
 78.5   conferred by law upon police officers.  The powers include the 
 78.6   authority to conduct inspections at designated highway weigh 
 78.7   stations or under other appropriate circumstances. 
 78.8      Sec. 22.  Minnesota Statutes 2000, section 296A.23, 
 78.9   subdivision 7, is amended to read: 
 78.10     Subd. 7.  [FAILURE TO OBTAIN PROPER PERMIT.] A minimum fine 
 78.11  of $200 shall be imposed on a person who fails to obtain a 
 78.12  license or trip permit required under section 296A.27, 
 78.13  subdivisions 6 and 12 168D.05 or 168D.12. 
 78.14     Sec. 23.  [REPEALER.] 
 78.15     Minnesota Statutes 2000, sections 296A.27 and 296A.28, are 
 78.16  repealed. 
 78.17                             ARTICLE 3 
 78.18                   COMMERCIAL VEHICLE ENFORCEMENT 
 78.19     Section 1.  Minnesota Statutes 2000, section 168.011, 
 78.20  subdivision 17, is amended to read: 
 78.21     Subd. 17.  [FARM TRUCK.] (a) "Farm truck" means all single 
 78.22  unit trucks, truck-tractors, tractors, semitrailers, and 
 78.23  trailers used by the owner thereof to transport agricultural, 
 78.24  horticultural, dairy, and other farm products, including 
 78.25  livestock, produced or finished by the owner of the truck, and 
 78.26  any other personal property owned by the farmer to whom the 
 78.27  license for the truck is issued, from the farm to market, and to 
 78.28  transport property and supplies to the farm of the owner.  
 78.29  Trucks, truck-tractors, tractors, semitrailers, and trailers 
 78.30  registered as "farm trucks" may be used by the owner thereof to 
 78.31  occasionally transport unprocessed and raw farm products, not 
 78.32  produced by the owner of the truck, from the place of production 
 78.33  to market when the transportation constitutes the first haul of 
 78.34  the products, and may be used by the owner thereof, either 
 78.35  farmer or logger who harvests and hauls forest products only, to 
 78.36  transport logs, pulpwood, lumber, chips, railroad ties and other 
 79.1   raw and unfinished forest products from the place of production 
 79.2   to an intermediate or final assembly point or transfer yard or 
 79.3   railhead when the transportation constitutes, which 
 79.4   transportation may be continued by another farm truck to a place 
 79.5   for final processing or manufacture located within 200 miles of 
 79.6   the place of production and all of which is deemed to constitute 
 79.7   the first haul thereof, of unfinished wood products; provided 
 79.8   that the owner and operator of the vehicle transporting planed 
 79.9   lumber shall have in immediate possession a statement signed by 
 79.10  the producer of the lumber designating the governmental 
 79.11  subdivision, section, and township where the lumber was produced 
 79.12  and that this haul, indicating the date, is the first haul 
 79.13  thereof.  The licensed vehicles may also be used by the owner 
 79.14  thereof to transport, to and from timber-harvesting areas, 
 79.15  equipment and appurtenances incidental to timber harvesting, and 
 79.16  gravel and other road-building materials for timber haul roads. 
 79.17     (b) "Farm trucks" shall also include only single unit 
 79.18  trucks, which that, because of their construction, cannot be 
 79.19  used for any other purpose and are used exclusively to transport 
 79.20  milk and cream en route from a farm to an assembly point or 
 79.21  place for final manufacture, and for transporting milk and cream 
 79.22  from an assembly point to a place for final processing or 
 79.23  manufacture.  This section shall not be construed to mean that 
 79.24  the owner or operator of the truck cannot carry on usual 
 79.25  accommodation services for patrons on regular return trips, such 
 79.26  as butter, cream, cheese, and other dairy supplies. 
 79.27     Sec. 2.  Minnesota Statutes 2000, section 168.013, 
 79.28  subdivision 3, is amended to read: 
 79.29     Subd. 3.  [APPLICATION; CANCELLATION; EXCESSIVE GROSS 
 79.30  WEIGHT FORBIDDEN.] (a) The applicant for all licenses based on 
 79.31  gross weight shall state the unloaded weight of the motor 
 79.32  vehicle, trailer, or semitrailer and the maximum load the 
 79.33  applicant proposes to carry thereon, the sum of which shall 
 79.34  constitute the gross weight upon which the license tax shall be 
 79.35  paid, but in no case shall the declared gross weight upon which 
 79.36  the tax is paid be less than 1-1/4 times the declared unloaded 
 80.1   weight of the motor vehicle, trailer, or semitrailer to be 
 80.2   registered, except recreational vehicles taxed under subdivision 
 80.3   1g, school buses taxed under subdivision 18, and tow trucks or 
 80.4   towing vehicles defined in section 169.01, subdivision 52.  The 
 80.5   gross weight of a tow truck or towing vehicle is the actual 
 80.6   weight of the tow truck or towing vehicle fully equipped, but 
 80.7   does not include the weight of a wrecked or disabled vehicle 
 80.8   towed or drawn by the tow truck or towing vehicle. 
 80.9      (b) The gross weight of no a motor vehicle, trailer, or 
 80.10  semitrailer shall not exceed the gross weight upon which the 
 80.11  license tax has been paid by more than four percent or 1,000 
 80.12  pounds, whichever is greater; provided that, a vehicle 
 80.13  transporting unfinished forest products in accordance with 
 80.14  paragraph (d)(3) shall not exceed its gross vehicle weight upon 
 80.15  which the license tax has been paid, or gross axle weight on any 
 80.16  axle, by more than five percent and, notwithstanding other law 
 80.17  to the contrary, is not subject to any fee, fine, or other 
 80.18  assessment or penalty for exceeding a gross vehicle or axle 
 80.19  weight by up to five percent. 
 80.20     (c) The gross weight of the motor vehicle, trailer, or 
 80.21  semitrailer for which the license tax is paid shall be indicated 
 80.22  by a distinctive character on the license plate or plates except 
 80.23  as provided in subdivision 12 and the plate or plates shall be 
 80.24  kept clean and clearly visible at all times. 
 80.25     (d) The owner, driver, or user of a motor vehicle, trailer, 
 80.26  or semitrailer, upon conviction for transporting a gross weight 
 80.27  in excess of the gross weight for which it was registered or for 
 80.28  operating a vehicle with an axle weight exceeding the maximum 
 80.29  lawful axle load weight, shall be guilty of a misdemeanor and be 
 80.30  subject to increased registration or reregistration according to 
 80.31  the following schedule: 
 80.32     (1) The owner, driver, or user of a motor vehicle, trailer, 
 80.33  or semitrailer, upon conviction for transporting a gross weight 
 80.34  in excess of the gross weight for which it is registered by more 
 80.35  than four percent or 1,000 pounds, whichever is greater, the 
 80.36  allowance set forth in paragraph (b) but less than 25 percent or 
 81.1   for operating or using a motor vehicle, trailer, or semitrailer 
 81.2   with an axle weight exceeding the maximum lawful axle load as 
 81.3   provided in section 169.825 by more than four percent or 1,000 
 81.4   pounds, whichever is greater, the allowance set forth in 
 81.5   paragraph (b) but less than 25 percent, in addition to any 
 81.6   penalty imposed for the misdemeanor shall apply to the registrar 
 81.7   to increase the authorized gross weight to be carried on the 
 81.8   vehicle to a weight equal to or greater than the gross weight 
 81.9   the owner, driver, or user was convicted of carrying, the 
 81.10  increase computed for the balance of the calendar year on the 
 81.11  basis of 1/12 of the annual tax for each month remaining in the 
 81.12  calendar year beginning with the first day of the month in which 
 81.13  the violation occurred.  If the additional registration tax 
 81.14  computed upon that weight, plus the tax already paid, amounts to 
 81.15  more than the regular tax for the maximum gross weight permitted 
 81.16  for the vehicle under section 169.825, that additional amount 
 81.17  shall nevertheless be paid into the highway fund, but the 
 81.18  additional tax thus paid shall not permit the vehicle to be 
 81.19  operated with a gross weight in excess of the maximum legal 
 81.20  weight as provided by section 169.825.  Unless the owner within 
 81.21  30 days after a conviction shall apply to increase the 
 81.22  authorized weight and pay the additional tax as provided in this 
 81.23  section, the registrar shall revoke the registration on the 
 81.24  vehicle and demand the return of the registration card and 
 81.25  plates issued on that registration. 
 81.26     (2) The owner or driver or user of a motor vehicle, 
 81.27  trailer, or semitrailer upon conviction for transporting a gross 
 81.28  weight in excess of the gross weight for which the motor 
 81.29  vehicle, trailer, or semitrailer was registered by 25 percent or 
 81.30  more, or for operating or using a vehicle or trailer with an 
 81.31  axle weight exceeding the maximum lawful axle load as provided 
 81.32  in section 169.825 by 25 percent or more, in addition to any 
 81.33  penalty imposed for the misdemeanor, shall have the reciprocity 
 81.34  privileges on the vehicle involved if the vehicle is being 
 81.35  operated under reciprocity canceled by the registrar, or if the 
 81.36  vehicle is not being operated under reciprocity, the certificate 
 82.1   of registration on the vehicle operated shall be canceled by the 
 82.2   registrar and the registrar shall demand the return of the 
 82.3   registration certificate and registration plates.  The registrar 
 82.4   may not cancel the registration or reciprocity privileges for 
 82.5   any vehicle found in violation of seasonal load restrictions 
 82.6   imposed under section 169.87 unless the axle weight exceeds the 
 82.7   year-round weight limit for the highway on which the violation 
 82.8   occurred.  The registrar may investigate any allegation of gross 
 82.9   weight violations and demand that the operator show cause why 
 82.10  all future operating privileges in the state should not be 
 82.11  revoked unless the additional tax assessed is paid. 
 82.12     (3) Clause (1) does not apply to the first haul of 
 82.13  unprocessed or raw farm products or unfinished forest products, 
 82.14  when the registered gross weight is not exceeded by more than 
 82.15  ten percent.  For purposes of this clause, "first haul" means 
 82.16  (i) the first, continuous transportation of unprocessed or raw 
 82.17  farm products from the place of production or on-farm storage 
 82.18  site to any other location within 50 miles of the place of 
 82.19  production or on-farm storage site, or (ii) the first, 
 82.20  continuous or noncontinuous transportation of unfinished forest 
 82.21  products from the place of production to the place of first 
 82.22  unloading final processing or manufacture located within 200 
 82.23  miles of the place of production. 
 82.24     (4) When the registration on a motor vehicle, trailer, or 
 82.25  semitrailer is revoked by the registrar according to provisions 
 82.26  of this section, the vehicle shall not be operated on the 
 82.27  highways of the state until it is registered or reregistered, as 
 82.28  the case may be, and new plates issued, and the registration fee 
 82.29  shall be the annual tax for the total gross weight of the 
 82.30  vehicle at the time of violation.  The reregistration pursuant 
 82.31  to this subdivision of any vehicle operating under reciprocity 
 82.32  agreements pursuant to section 168.181 or 168.187 shall be at 
 82.33  the full annual registration fee without regard to the 
 82.34  percentage of vehicle miles traveled in this state.  
 82.35     Sec. 3.  Minnesota Statutes 2000, section 169.771, 
 82.36  subdivision 2, is amended to read: 
 83.1      Subd. 2.  [INSPECTION BY STATE TROOPER.] (a) The 
 83.2   commissioner of public safety is directed to accelerate spot 
 83.3   check inspections for unsafe motor vehicles and motor vehicle 
 83.4   equipment.  Such inspections shall be conducted by the personnel 
 83.5   of the state patrol who shall give the operator of a commercial 
 83.6   motor vehicle a signed and dated document as evidence of the 
 83.7   inspection.  
 83.8      (b) However, personnel of the state patrol may not conduct 
 83.9   another spot inspection of a commercial motor vehicle if (1) the 
 83.10  operator of the vehicle can show evidence of an inspection, 
 83.11  which is free of critical defects, conducted in Minnesota 
 83.12  according to this section or section 169.781 within the previous 
 83.13  90 days and (2) a state trooper does not have probable cause to 
 83.14  believe the vehicle or its equipment is unsafe or that the 
 83.15  operator has engaged in illegal activity.  In addition, if the 
 83.16  operator shows the state trooper evidence that the commercial 
 83.17  motor vehicle has been inspected within the previous 90 days, 
 83.18  but the officer has probable cause to believe the vehicle or its 
 83.19  equipment is unsafe or to suspect illegal activity, then the 
 83.20  vehicle may be inspected to confirm the existence or absence of 
 83.21  an unsafe condition or of the suspected illegal activity.  
 83.22     Sec. 4.  Minnesota Statutes 2000, section 169.771, 
 83.23  subdivision 3, is amended to read: 
 83.24     Subd. 3.  [RULES.] The commissioner of public safety may 
 83.25  establish such reasonable rules as are necessary to carry out 
 83.26  the provisions of this section, but all spot check inspections 
 83.27  shall be held in compliance with subdivision 2 and in such a 
 83.28  manner that the motor vehicle operators, either private or 
 83.29  commercial, shall not be unnecessarily inconvenienced either by 
 83.30  extended detours, unnecessary delays, or any other unreasonable 
 83.31  cause.  
 83.32     Sec. 5.  Minnesota Statutes 2000, section 169.85, 
 83.33  subdivision 1, is amended to read: 
 83.34     Subdivision 1.  [DRIVER TO STOP FOR WEIGHING.] (a) The 
 83.35  driver of a vehicle which that has been lawfully stopped may be 
 83.36  required by an officer to submit the vehicle and load to a 
 84.1   weighing by means of portable or stationary scales, and.  
 84.2      (b) In addition, the officer may require that the vehicle 
 84.3   be driven to the nearest available scales, but only if: 
 84.4      (1) the distance to the scales is no further than five 
 84.5   miles, or if the distance from the point where the vehicle is 
 84.6   stopped to the vehicle's destination is not increased by more 
 84.7   than ten miles as a result of proceeding to the nearest 
 84.8   available scales; and 
 84.9      (2) if the vehicle is a commercial motor vehicle, no more 
 84.10  than two other commercial motor vehicles are waiting to be 
 84.11  inspected at the scale.  
 84.12     (c) Official traffic control devices as authorized by 
 84.13  section 169.06 may be used to direct the driver to the nearest 
 84.14  scale.  
 84.15     (d) When a truck weight enforcement operation is conducted 
 84.16  by means of portable or stationary scales and signs giving 
 84.17  notice of the operation are posted within the highway 
 84.18  right-of-way and adjacent to the roadway within two miles of the 
 84.19  operation, the driver of a truck or combination of vehicles 
 84.20  registered for or weighing in excess of 12,000 pounds shall 
 84.21  proceed to the scale site and submit the vehicle to weighing and 
 84.22  inspection. 
 84.23     Sec. 6.  Minnesota Statutes 2000, section 169.85, 
 84.24  subdivision 2, is amended to read: 
 84.25     Subd. 2.  [UNLOADING.] (a) Upon weighing a vehicle and 
 84.26  load, as provided in this section, an officer may require the 
 84.27  driver to stop the vehicle in a suitable place and remain 
 84.28  standing until a portion of the load is removed that is 
 84.29  sufficient to reduce the gross weight of the vehicle to the 
 84.30  limit permitted under either section 168.013, subdivision 3, 
 84.31  paragraph (b), or 169.825, whichever is the lesser violation, if 
 84.32  any.  A suitable place is a location where loading or tampering 
 84.33  with the load is not prohibited by federal, state, or local law, 
 84.34  rule, or ordinance.  
 84.35     (b) Except as provided in paragraph (c), a driver may be 
 84.36  required to unload a vehicle only if the weighing officer 
 85.1   determines that (a) (1) on routes subject to the provisions of 
 85.2   section 169.825, the weight on an axle exceeds the lawful gross 
 85.3   weight prescribed by section 169.825, by 2,000 pounds or more, 
 85.4   or the weight on a group of two or more consecutive axles in 
 85.5   cases where the distance between the centers of the first and 
 85.6   last axles of the group under consideration is ten feet or less 
 85.7   exceeds the lawful gross weight prescribed by section 169.825, 
 85.8   by 4,000 pounds or more; or (b) (2) on routes designated by the 
 85.9   commissioner in section 169.832, subdivision 11, the overall 
 85.10  weight of the vehicle or the weight on an axle or group of 
 85.11  consecutive axles exceeds the maximum lawful gross weights 
 85.12  prescribed by section 169.825; or (c) (3) the weight is unlawful 
 85.13  on an axle or group of consecutive axles on a road restricted in 
 85.14  accordance with section 169.87.  Material unloaded must be cared 
 85.15  for by the owner or driver of the vehicle at the risk of the 
 85.16  owner or driver. 
 85.17     (c) If the gross weight of the vehicle does not exceed the 
 85.18  vehicle's registered gross weight plus the weight allowance set 
 85.19  forth in section 168.013, subdivision 3, paragraph (b), then the 
 85.20  driver is not required to unload under paragraph (b).  
 85.21     Sec. 7.  Minnesota Statutes 2000, section 169.851, 
 85.22  subdivision 3, is amended to read: 
 85.23     Subd. 3.  [FIRST HAUL.] "First haul" means the first, 
 85.24  continuous transportation from the place of production or on 
 85.25  farm storage site to any other location within 50 miles of the 
 85.26  place of production or on farm storage site has the meaning 
 85.27  given it in section 168.013, subdivision 3, paragraph (d)(3).  
 85.28     Sec. 8.  Minnesota Statutes 2000, section 169.86, 
 85.29  subdivision 5, is amended to read: 
 85.30     Subd. 5.  [FEE; PROCEEDS TO TRUNK HIGHWAY FUND.] The 
 85.31  commissioner, with respect to highways under the commissioner's 
 85.32  jurisdiction, may charge a fee for each permit issued.  All such 
 85.33  fees for permits issued by the commissioner of transportation 
 85.34  shall be deposited in the state treasury and credited to the 
 85.35  trunk highway fund.  Except for those annual permits for which 
 85.36  the permit fees are specified elsewhere in this chapter, the 
 86.1   fees shall be: 
 86.2      (a) $15 for each single trip permit. 
 86.3      (b) $36 for each job permit.  A job permit may be issued 
 86.4   for like loads carried on a specific route for a period not to 
 86.5   exceed two months.  "Like loads" means loads of the same 
 86.6   product, weight, and dimension. 
 86.7      (c) $60 for an annual permit to be issued for a period not 
 86.8   to exceed 12 consecutive months.  Annual permits may be issued 
 86.9   for: 
 86.10     (1) motor vehicles used to alleviate a temporary crisis 
 86.11  adversely affecting the safety or well-being of the public; 
 86.12     (2) motor vehicles which travel on interstate highways and 
 86.13  carry loads authorized under subdivision 1a; 
 86.14     (3) motor vehicles operating with gross weights authorized 
 86.15  under section 169.825, subdivision 11, paragraph (a), clause 
 86.16  (3); 
 86.17     (4) special pulpwood vehicles described in section 169.863; 
 86.18  and 
 86.19     (5) motor vehicles bearing snowplow blades not exceeding 
 86.20  ten feet in width. 
 86.21     (d) $120 for an oversize annual permit to be issued for a 
 86.22  period not to exceed 12 consecutive months.  Annual permits may 
 86.23  be issued for:  
 86.24     (1) mobile cranes; 
 86.25     (2) construction equipment, machinery, and supplies; 
 86.26     (3) manufactured homes; 
 86.27     (4) implements of husbandry when the movement is not made 
 86.28  according to the provisions of paragraph (i); 
 86.29     (5) double-deck buses; 
 86.30     (6) commercial boat hauling.  
 86.31     (e) For vehicles which have axle weights exceeding the 
 86.32  weight limitations of section 169.825, an additional cost added 
 86.33  to the fees listed above.  However, this paragraph applies to 
 86.34  any vehicle described in section 168.013, subdivision 3, 
 86.35  paragraph (b), but only when the vehicle exceeds its gross 
 86.36  weight allowance set forth in that paragraph, and then the 
 87.1   additional cost is for all weight, including the allowance 
 87.2   weight, in excess of the permitted maximum axle weight.  The 
 87.3   additional cost is equal to the product of the distance traveled 
 87.4   times the sum of the overweight axle group cost factors shown in 
 87.5   the following chart:  
 87.6                  Overweight Axle Group Cost Factors 
 87.7   Weight (pounds)         Cost Per Mile For Each Group Of:
 87.8   exceeding       Two consec-     Three consec-   Four consec-
 87.9   weight          utive axles     utive axles     utive axles
 87.10  limitations     spaced within   spaced within   spaced within
 87.11  on axles        8 feet or less  9 feet or less  14 feet or less 
 87.12       0-2,000    .12             .05             .04
 87.13   2,001-4,000    .14             .06             .05
 87.14   4,001-6,000    .18             .07             .06
 87.15   6,001-8,000    .21             .09             .07
 87.16   8,001-10,000   .26             .10             .08
 87.17  10,001-12,000   .30             .12             .09
 87.18  12,001-14,000   Not permitted   .14             .11
 87.19  14,001-16,000   Not permitted   .17             .12
 87.20  16,001-18,000   Not permitted   .19             .15
 87.21  18,001-20,000   Not permitted   Not permitted   .16
 87.22  20,001-22,000   Not permitted   Not permitted   .20
 87.23  The amounts added are rounded to the nearest cent for each axle 
 87.24  or axle group.  The additional cost does not apply to paragraph 
 87.25  (c), clauses (1) and (3).  
 87.26  For a vehicle found to exceed the appropriate maximum permitted 
 87.27  weight, a cost-per-mile fee of 22 cents per ton, or fraction of 
 87.28  a ton, over the permitted maximum weight is imposed in addition 
 87.29  to the normal permit fee.  Miles must be calculated based on the 
 87.30  distance already traveled in the state plus the distance from 
 87.31  the point of detection to a transportation loading site or 
 87.32  unloading site within the state or to the point of exit from the 
 87.33  state. 
 87.34     (f) As an alternative to paragraph (e), an annual permit 
 87.35  may be issued for overweight, or oversize and overweight, 
 87.36  construction equipment, machinery, and supplies.  The fees for 
 88.1   the permit are as follows:  
 88.2   Gross Weight (pounds) of Vehicle          Annual Permit Fee
 88.3        90,000 or less                             $200
 88.4        90,001 - 100,000                           $300
 88.5       100,001 - 110,000                           $400
 88.6       110,001 - 120,000                           $500
 88.7       120,001 - 130,000                           $600
 88.8       130,001 - 140,000                           $700
 88.9       140,001 - 145,000                           $800
 88.10  If the gross weight of the vehicle is more than 145,000 pounds 
 88.11  the permit fee is determined under paragraph (e). 
 88.12     (g) For vehicles which exceed the width limitations set 
 88.13  forth in section 169.80 by more than 72 inches, an additional 
 88.14  cost equal to $120 added to the amount in paragraph (a) when the 
 88.15  permit is issued while seasonal load restrictions pursuant to 
 88.16  section 169.87 are in effect. 
 88.17     (h) $85 for an annual permit to be issued for a period not 
 88.18  to exceed 12 months, for refuse compactor vehicles that carry a 
 88.19  gross weight of not more than:  22,000 pounds on a single rear 
 88.20  axle; 38,000 pounds on a tandem rear axle; or, subject to 
 88.21  section 169.825, subdivision 14, 46,000 pounds on a tridem rear 
 88.22  axle.  A permit issued for up to 46,000 pounds on a tridem rear 
 88.23  axle must limit the gross vehicle weight to not more than 62,000 
 88.24  pounds. 
 88.25     (i) For vehicles exclusively transporting implements of 
 88.26  husbandry, an annual permit fee of $24.  A vehicle operated 
 88.27  under a permit authorized by this paragraph may be moved at the 
 88.28  discretion of the permit holder without prior route approval by 
 88.29  the commissioner if: 
 88.30     (1) the total width of the transporting vehicle, including 
 88.31  load, does not exceed 14 feet; 
 88.32     (2) the vehicle is operated only between sunrise and 30 
 88.33  minutes after sunset, and is not operated at any time after 
 88.34  12:00 noon on Sundays or holidays; 
 88.35     (3) the vehicle is not operated when visibility is impaired 
 88.36  by weather, fog, or other conditions that render persons and 
 89.1   other vehicles not clearly visible at 500 feet; 
 89.2      (4) the vehicle displays at the front and rear of the load 
 89.3   or vehicle a pair of flashing amber lights, as provided in 
 89.4   section 169.59, subdivision 4, whenever the overall width of the 
 89.5   vehicle exceeds 126 inches; and 
 89.6      (5) the vehicle is not operated on a trunk highway with a 
 89.7   surfaced roadway width of less than 24 feet unless such 
 89.8   operation is authorized by the permit. 
 89.9   A permit under this paragraph authorizes movements of the 
 89.10  permitted vehicle on an interstate highway, and movements of 75 
 89.11  miles or more on other highways. 
 89.12     Sec. 9.  [NORTHERN ZONE LOAD RESTRICTION STUDY.] 
 89.13     The commissioner of transportation shall conduct a study of 
 89.14  load restrictions and seasonal load increases in the northern 
 89.15  zone of Minnesota and make recommendations regarding the 
 89.16  establishment of one or more new zones given the varying climate 
 89.17  in the northern area of the state.  The commissioner shall 
 89.18  report findings back to the committees of the senate and house 
 89.19  of representatives with jurisdiction over transportation policy 
 89.20  by December 15, 2002. 
 89.21     Sec. 10.  [EFFECTIVE DATE.] 
 89.22     Sections 1 to 9 are effective the day following final 
 89.23  enactment.