1.1 	A bill for an act
1.2 	relating to transportation; establishing the governor's budget for transportation; 
1.3 	appropriating money for transportation, Metropolitan Council, and public 
1.4 	safety activities; establishing a gross receipts motor fuels tax; modifying the 
1.5 	metropolitan area transit sales tax; amending provisions governing transportation 
1.6 	finance; authorizing sale and issuance of trunk highway bonds; requiring 
1.7 	reports;amending Minnesota Statutes 2014, sections 16E.15, subdivision 
1.8 	2; 117.036, subdivisions 2, 4; 161.231; 161.46, subdivision 2; 162.18, by 
1.9 	adding a subdivision; 168.013, subdivision 1a; 168D.06; 169.475, by adding 
1.10 	a subdivision; 296A.11; 296A.12; 296A.16, subdivisions 1, 2, 3, 4, 4a, 4b, 
1.11 	5; 296A.18, subdivisions 2, 3, 4, 5, 6, 7; 297A.99, subdivision 1; 299D.09; 
1.12 	360.024; 360.305, subdivision 4; Laws 2012, First Special Session chapter 1, 
1.13 	article 1, section 4, subdivision 3; proposing coding for new law in Minnesota 
1.14 	Statutes, chapters 174; 219; 296A; 297A; 473; repealing Minnesota Statutes 
1.15 	2014, sections 299E.02; 473.4051, subdivision 2.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	TRANSPORTATION APPROPRIATIONS

1.19	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
1.20 	The amounts shown in this section summarize direct appropriations, by fund, made 
1.21 	in this act.

1.22			2016
		2017
		Total
	
1.23	General
	$
	124,683,000
	$
	116,842,000
	$
	241,525,000
	
1.24	Airports
		25,109,000
		25,109,000
		50,218,000
	
1.25	C.S.A.H.
		777,681,000
		865,193,000
		1,642,874,000
	
1.26	M.S.A.S.
		199,214,000
		222,347,000
		421,561,000
	
1.27	Special Revenue
		53,239,000
		53,974,000
		107,213,000
	
1.28	Highway User
		10,428,000
		10,449,000
		20,877,000
	
2.1	Trunk Highway
		1,820,186,000
		1,983,355,000
		3,803,541,000
	
2.2	Total
	$
	3,010,540,000
	$
	3,277,269,000
	$
	6,287,809,000

2.3	Sec. 2. TRANSPORTATION APPROPRIATIONS.
 	
2.4 	The sums shown in the columns marked "Appropriations" are appropriated to 
2.5 	the agencies and for the purposes specified in this article. The appropriations are from 
2.6 	the trunk highway fund, or another named fund, and are available for the fiscal years 
2.7 	indicated for each purpose. The figures "2016" and "2017" used in this article mean that 
2.8 	the appropriations listed under them are available for the fiscal year ending June 30, 2016, 
2.9 	or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is 
2.10 	fiscal year 2017. "The biennium" is fiscal years 2016 and 2017.

2.11				APPROPRIATIONS
	
2.12				Available for the Year
	
2.13				Ending June 30
	
2.14					2016
		2017

2.15
2.16	Sec. 3. DEPARTMENT OF 
TRANSPORTATION

2.17	Subdivision 1.Total Appropriation
 	$
	2,760,916,000
	$
	3,024,825,000

2.18	Appropriations by Fund
	
2.19		2016
	2017
	
2.20	General
	35,018,000
	27,058,000
	
2.21	Airports
	25,109,000
	25,109,000
	
2.22	C.S.A.H.
	777,681,000
	865,193,000
	
2.23	M.S.A.S.
	199,214,000
	222,347,000
	
2.24	Trunk Highway
	1,723,894,000
	1,885,118,000
	
2.25 	The amounts that may be spent for each 
2.26 	purpose are specified in the following 
2.27 	subdivisions.

2.28	Subd. 2.Multimodal Systems
 		64,762,000
		56,978,000

2.29	Appropriations by Fund
	
2.30		2016
	2017
	
2.31	General
	32,461,000
	24,501,000
	
2.32	Airports
	25,109,000
	25,109,000
	
2.33	Trunk Highway
	7,192,000
	7,368,000

2.34	(a) Aeronautics
		36,419,000
		26,459,000

3.1	Appropriations by Fund
	
3.2		2016
	2017
	
3.3	General
	9,960,000
	-0-
	
3.4	Trunk Highway
	1,350,000
	1,350,000
	
3.5	Airports
	25,109,000
	25,109,000

3.6	(1) Airport Development and Assistance
		19,798,000
		19,798,000
	
3.7 	This appropriation is from the state 
3.8 	airports fund and must be spent according 
3.9 	to Minnesota Statutes, section 360.305, 
3.10 	subdivision 4.
3.11 	The base appropriation for fiscal years 2017 
3.12 	and 2018 is $14,323,000 for each year.
3.13 	Notwithstanding Minnesota Statutes, section 
3.14 	16A.28, subdivision 6, this appropriation 
3.15 	is available for five years after the date of 
3.16 	appropriation.
3.17 	If the appropriation for either year is 
3.18 	insufficient, the appropriation for the other 
3.19 	year is available for it.

3.20	(2) Aviation Support and Services
		6,661,000
		6,661,000

3.21	Appropriations by Fund
	
3.22		2016
	2017
	
3.23	Airports
	5,311,000
	5,311,000
	
3.24	Trunk Highway
	1,350,000
	1,350,000
	
3.25 	$80,000 in each year is from the state airports 
3.26 	fund for the Civil Air Patrol.

3.27	(3) Airplane Purchase
					
3.28 	$9,960,000 in fiscal year 2016 is from the 
3.29 	general fund to be used in conjunction with 
3.30 	the proceeds of the sale of existing airplanes 
3.31 	for the replacement of two state airplanes. 
3.32 	This is a onetime appropriation.

3.33	(b) Transit
		22,543,000
		24,567,000

4.1	Appropriations by Fund
	
4.2		2016
	2017
	
4.3	General
	21,745,000
	23,745,000
	
4.4	Trunk Highway
	798,000
	822,000
	
4.5 	The base appropriation for fiscal years 
4.6 	2018 and 2019 from the general fund is 
4.7 	$27,745,000.
4.8 	$100,000 in each year is from the general 
4.9 	fund for the administrative expenses of the 
4.10 	Minnesota Council on Transportation Access 
4.11 	under Minnesota Statutes, section 174.285.
4.12 	$500,000 in each year is from the general fund 
4.13 	for noninfrastructure activities in the safe 
4.14 	routes to school program under Minnesota 
4.15 	Statutes, section 174.40, subdivision 7a.

4.16	(c) Passenger Rail
		500,000
		500,000
	
4.17 	This appropriation is from the general 
4.18 	fund for passenger rail system planning, 
4.19 	alternatives analysis, environmental analysis, 
4.20 	design, and preliminary engineering under 
4.21 	Minnesota Statutes, sections 174.632 to 
4.22 	174.636.

4.23	(d) Freight
		5,300,000
		5,452,000

4.24	Appropriations by Fund
	
4.25		2016
	2017
	
4.26	General
	256,000
	256,000
	
4.27	Trunk Highway
	5,044,000
	5,196,000

4.28	Subd. 3.State Roads
 		1,654,665,000
		1,814,367,000

4.29	Appropriations by Fund
	
4.30		2016
	2017
	
4.31	General
	3,000
	3,000
	
4.32	Trunk Highway
	1,654,662,000
	1,814,364,000

4.33	(a) Operations and Maintenance
		286,159,000
		299,764,000

4.34	(b) Program Planning and Delivery
		249,171,000
		274,974,000
	
5.1 	$130,000 in each year is available for 
5.2 	administrative costs of the department's 
5.3 	targeted group business program.
5.4 	$266,000 in each year is available for grants 
5.5 	to metropolitan planning organizations 
5.6 	outside the seven-county metropolitan area.
5.7 	$75,000 in each year is available for a 
5.8 	transportation research contingent account 
5.9 	to finance research projects that are 
5.10 	reimbursable from the federal government or 
5.11 	from other sources. If the appropriation for 
5.12 	either year is insufficient, the appropriation 
5.13 	for the other year is available for it.
5.14 	$900,000 in each year is available for 
5.15 	grants for transportation studies outside 
5.16 	the metropolitan area to identify critical 
5.17 	concerns, problems, and issues. These 
5.18 	grants are available (1) to regional 
5.19 	development commissions; (2) in regions 
5.20 	where no regional development commission 
5.21 	is functioning, to joint powers boards 
5.22 	established under agreement of two or 
5.23 	more political subdivisions in the region to 
5.24 	exercise the planning functions of a regional 
5.25 	development commission; and (3) in regions 
5.26 	where no regional development commission 
5.27 	or joint powers board is functioning, to the 
5.28 	department's district office for that region.
5.29 	$1,000,000 in each year is available 
5.30 	for management of contaminated and 
5.31 	regulated material on property owned by 
5.32 	the Department of Transportation, including 
5.33 	mitigation of property conveyances, facility 
5.34 	acquisition or expansion, chemical release at 
5.35 	maintenance facilities, and spills on the trunk 
6.1 	highway system where there is no known 
6.2 	responsible party. If the appropriation for 
6.3 	either year is insufficient, the appropriation 
6.4 	for the other year is available for it.

6.5	(c) State Road Construction Total
		910,328,000
		975,628,000

6.6
6.7	(1) Economic Recovery Funds - Federal 
Highway Aid
		1,000,000
		-0-
	
6.8 	To complete projects using funds 
6.9 	made available to the commissioner 
6.10 	of transportation under title XII of the 
6.11 	American Recovery and Reinvestment Act 
6.12 	of 2009, Public Law 111-5 and implemented 
6.13 	under Minnesota Statutes, section 161.36, 
6.14 	subdivision 7.

6.15	(2) State Road Construction
		910,328,000
		975,628,000

6.16	Appropriations by Fund
	
6.17		2016
	2017
	
6.18
6.19	Federal Highway 
Aid
	455,970,000
	462,570,000
	
6.20	Highway User Taxes
	454,358,000
	513,058,000
	
6.21 	The commissioner of transportation shall 
6.22 	notify the chairs and ranking minority 
6.23 	members of the legislative committees with 
6.24 	jurisdiction over transportation finance of 
6.25 	any significant events that should cause these 
6.26 	estimates to change.
6.27 	This appropriation is for the actual 
6.28 	construction, reconstruction, and 
6.29 	improvement of trunk highways, including 
6.30 	design-build contracts, internal department 
6.31 	costs associated with delivering the 
6.32 	construction program, and consultant usage 
6.33 	to support these activities. This includes the 
6.34 	cost of actual payment to landowners for 
6.35 	lands acquired for highway rights-of-way, 
7.1 	payment to lessees, interest subsidies, and 
7.2 	relocation expenses.
7.3 	The base appropriation in fiscal years 2018 
7.4 	and 2019 is $975,628,000.
7.5 	$10,000,000 in each year is available for 
7.6 	the transportation economic development 
7.7 	program under Minnesota Statutes, section 
7.8 	174.12. These appropriations are available 
7.9 	until expended.
7.10 	The commissioner may expend up to one-half 
7.11 	of one percent of the federal appropriations 
7.12 	under this paragraph as grants to opportunity 
7.13 	industrialization centers and other nonprofit 
7.14 	job training centers for job training programs 
7.15 	related to highway construction.
7.16 	The commissioner may transfer up to 
7.17 	$15,000,000 each year to the transportation 
7.18 	revolving loan fund.
7.19 	The commissioner may collect receipts for 
7.20 	the partners' share of partnership projects. 
7.21 	These receipts are appropriated to the 
7.22 	commissioner for these projects.

7.23	(d) Highway Debt Service
		203,681,000
		258,515,000
	
7.24 	$194,181,000 the first year and $249,015,000 
7.25 	the second year are for transfer to the state 
7.26 	bond fund. If this appropriation is insufficient 
7.27 	to make all transfers required in the year 
7.28 	for which it is made, the commissioner of 
7.29 	management and budget shall notify the 
7.30 	Committee on Finance of the senate and 
7.31 	the Committee on Ways and Means of the 
7.32 	house of representatives of the amount of the 
7.33 	deficiency and shall then transfer that amount 
7.34 	under the statutory open appropriation. Any 
8.1 	excess appropriation cancels to the trunk 
8.2 	highway fund.

8.3	(e) Statewide Radio Communications
		5,326,000
		5,486,000

8.4	Appropriations by Fund
	
8.5		2016
	2017
	
8.6	General
	3,000
	3,000
	
8.7	Trunk Highway
	5,323,000
	5,483,000
	
8.8 	The general fund appropriation is to equip 
8.9 	and operate the Roosevelt signal tower for 
8.10 	Lake of the Woods weather broadcasting.

8.11	Subd. 4.Local Roads
 		979,395,000
		1,090,040,000

8.12	Appropriations by Fund
	
8.13		2016
	2017
	
8.14	General
	2,500,000
	2,500,000
	
8.15	C.S.A.H.
	777,681,000
	865,193,000
	
8.16	M.S.A.S.
	199,214,000
	222,347,000

8.17	(a) County State-aid Roads
		777,681,000
		865,193,000
	
8.18 	This appropriation is from the county 
8.19 	state-aid highway fund under Minnesota 
8.20 	Statutes, section 161.081, and chapter 162, 
8.21 	and is available until spent.
8.22 	If the commissioner of transportation 
8.23 	determines that a balance remains in the 
8.24 	county state-aid highway fund following 
8.25 	the appropriations and transfers made in 
8.26 	this subdivision, and that the appropriations 
8.27 	made are insufficient for advancing county 
8.28 	state-aid highway projects, an amount 
8.29 	necessary to advance the projects, not to 
8.30 	exceed the balance in the county state-aid 
8.31 	highway fund, is appropriated in each year 
8.32 	to the commissioner. Within two weeks 
8.33 	of a determination under this contingent 
8.34 	appropriation, the commissioner of 
8.35 	transportation shall notify the commissioner 
9.1 	of management and budget and the chairs 
9.2 	and ranking minority members of the 
9.3 	legislative committees with jurisdiction over 
9.4 	transportation finance concerning funds 
9.5 	appropriated.

9.6	(b) Pedestrian, Bike, and Safe Routes to School
		2,500,000
		2,500,000
	
9.7 	This appropriation is from the general fund 
9.8 	for infrastructure activities in the safe routes 
9.9 	to school program under Minnesota Statutes, 
9.10 	section 174.40, and grants for other bicycle 
9.11 	and pedestrian infrastructure that encourages 
9.12 	active transportation choices.

9.13	(c) Municipal State Aid Roads
		199,214,000
		222,347,000
	
9.14 	This appropriation is from the municipal 
9.15 	state-aid street fund under Minnesota 
9.16 	Statutes, chapter 162, and is available until 
9.17 	spent.
9.18 	If the commissioner of transportation 
9.19 	determines that a balance remains in the 
9.20 	municipal state-aid street fund following the 
9.21 	appropriations and transfers made in this 
9.22 	subdivision, and that the appropriations made 
9.23 	are insufficient for advancing municipal 
9.24 	state-aid street projects, an amount necessary 
9.25 	to advance the projects, not to exceed 
9.26 	the balance in the municipal state-aid 
9.27 	street fund, is appropriated in each year 
9.28 	to the commissioner. Within two weeks 
9.29 	of a determination under this contingent 
9.30 	appropriation, the commissioner of 
9.31 	transportation shall notify the commissioner 
9.32 	of management and budget and the chairs 
9.33 	and ranking minority members of the 
9.34 	legislative committees with jurisdiction over 
10.1 	transportation finance concerning funds 
10.2 	appropriated.

10.3	Subd. 5.Agency Management
 		62,094,000
		63,440,000

10.4	Appropriations by Fund
	
10.5		2016
	2017
	
10.6	General
	54,000
	54,000
	
10.7	Trunk Highway
	62,040,000
	63,386,000

10.8	(a) Agency Services

10.9	Appropriations by Fund
	
10.10		2016
	2017
	
10.11	Trunk Highway
	43,322,000
	44,119,000

10.12	(b) Tort Claims
		600,000
		600,000
	
10.13 	This appropriation is to the commissioner of 
10.14 	transportation. If the appropriation for either 
10.15 	year is insufficient, the appropriation for the 
10.16 	other year is available for it.

10.17	(c) Buildings
		18,772,000
		19,321,000

10.18	Appropriations by Fund
	
10.19		2016
	2017
	
10.20	General
	54,000
	54,000
	
10.21	Trunk Highway
	18,718,000
	19,267,000
	
10.22 	Any money appropriated to the commissioner 
10.23 	of transportation for building construction 
10.24 	for any fiscal year before 2016 is available 
10.25 	to the commissioner of transportation 
10.26 	during the biennium to the extent that the 
10.27 	commissioner spends the money on the 
10.28 	building construction projects for which the 
10.29 	money was originally encumbered during the 
10.30 	fiscal year for which it was appropriated.
10.31 	If the appropriation for either year is 
10.32 	insufficient, the appropriation for the other 
10.33 	year is available for it.

10.34	Subd. 6.Transfers
 					
11.1 	With the approval of the commissioner of 
11.2 	management and budget, the commissioner 
11.3 	of transportation may transfer unencumbered 
11.4 	balances among the appropriations from the 
11.5 	trunk highway fund and the state airports 
11.6 	fund made in this section. No transfer 
11.7 	may be made from the appropriation for 
11.8 	state road construction. No transfer may 
11.9 	be made from the appropriations for debt 
11.10 	service to any other appropriation. Transfers 
11.11 	under this subdivision may not be made 
11.12 	between funds. Transfers between programs 
11.13 	must be reported immediately to the chairs 
11.14 	and ranking minority members of the 
11.15 	legislative committees with jurisdiction over 
11.16 	transportation finance.
11.17 	The commissioner of transportation shall 
11.18 	transfer from the flexible highway account in 
11.19 	the county state-aid highway fund the entire 
11.20 	amount in each year to the county turnback 
11.21 	account in the county state-aid highway 
11.22 	fund. The funds transferred are for highway 
11.23 	turnback purposes under Minnesota Statutes, 
11.24 	section 161.081, subdivision 3.

11.25
11.26	Subd. 7.Previous State Road Construction 
Appropriations
 					
11.27 	Any money appropriated to the commissioner 
11.28 	of transportation for state road construction 
11.29 	for any fiscal year before fiscal year 2016 
11.30 	is available to the commissioner during the 
11.31 	biennium to the extent that the commissioner 
11.32 	spends the money on the state road 
11.33 	construction project for which the money 
11.34 	was originally encumbered during the fiscal 
11.35 	year for which it was appropriated.

12.1	Subd. 8.Contingent Appropriation
 					
12.2 	The commissioner of transportation, with 
12.3 	the approval of the governor and the 
12.4 	written approval of at least five members 
12.5 	of a group consisting of the members of 
12.6 	the Legislative Advisory Commission 
12.7 	under Minnesota Statutes, section 3.30, 
12.8 	and the ranking minority members of the 
12.9 	legislative committees with jurisdiction over 
12.10 	transportation finance, may transfer all or 
12.11 	part of the unappropriated balance in the 
12.12 	trunk highway fund to an appropriation (1) 
12.13 	for trunk highway design, construction, or 
12.14 	inspection in order to take advantage of an 
12.15 	unanticipated receipt of income to the trunk 
12.16 	highway fund or to take advantage of federal 
12.17 	advanced construction funding, (2) for trunk 
12.18 	highway maintenance in order to meet an 
12.19 	emergency, or (3) to pay tort or environmental 
12.20 	claims. Nothing in this subdivision 
12.21 	authorizes the commissioner to increase the 
12.22 	use of federal advanced construction funding 
12.23 	beyond amounts specifically authorized. 
12.24 	Any transfer as a result of the use of federal 
12.25 	advanced construction funding must include 
12.26 	an analysis of the effects on the long-term 
12.27 	trunk highway fund balance. The amount 
12.28 	transferred is appropriated for the purpose of 
12.29 	the account to which it is transferred.

12.30
12.31	Sec. 4. METROPOLITAN COUNCIL 
TRANSIT
 	$
	76,626,000
	$
	76,626,000

12.32	Transit
		76,626,000
		76,626,000
	
12.33 	This appropriation is for transit system 
12.34 	operations.

13.1	Sec. 5. PUBLIC SAFETY

13.2	Subdivision 1.Total Appropriation
 	$
	172,998,000
	$
	175,818,000

13.3	Appropriations by Fund
	
13.4		2016
	2017
	
13.5	General
	13,039,000
	13,158,000
	
13.6	Trunk Highway
	96,292,000
	98,237,000
	
13.7	Highway User
	10,428,000
	10,449,000
	
13.8	Special Revenue
	53,239,000
	53,974,000
	
13.9 	The amounts that may be spent for each 
13.10 	purpose are specified in the following 
13.11 	subdivisions.

13.12	Subd. 2.Administration and Related Services
 		12,787,000
		12,889,000

13.13	Appropriations by Fund
	
13.14		2016
	2017
	
13.15	General
	4,967,000
	4,974,000
	
13.16	Trunk Highway
	6,435,000
	6,530,000
	
13.17	Highway User
	1,385,000
	1,385,000
	
13.18 	$380,000 in each year is from the general 
13.19 	fund for payment of public safety officer 
13.20 	survivor benefits under Minnesota Statutes, 
13.21 	section 299A.44. If the appropriation for 
13.22 	either year is insufficient, the appropriation 
13.23 	for the other year is available for it.
13.24 	$1,367,000 in each year is from the general 
13.25 	fund to be deposited in the public safety 
13.26 	officer's benefit account. This money 
13.27 	is available for reimbursements under 
13.28 	Minnesota Statutes, section 299A.465.
13.29 	$600,000 in each year is from the general 
13.30 	fund and $100,000 in each year is from the 
13.31 	trunk highway fund for soft body armor 
13.32 	reimbursements under Minnesota Statutes, 
13.33 	section 299A.38.
13.34 	$792,000 in each year is from the general 
13.35 	fund for transfer by the commissioner of 
14.1 	management and budget to the trunk highway 
14.2 	fund on December 31, 2015, and December 
14.3 	31, 2016, respectively, in order to reimburse 
14.4 	the trunk highway fund for expenses not 
14.5 	related to the fund. These represent amounts 
14.6 	appropriated out of the trunk highway 
14.7 	fund for general fund purposes in the 
14.8 	administration and related services program.
14.9 	$610,000 in each year is from the highway 
14.10 	user tax distribution fund for transfer by the 
14.11 	commissioner of management and budget 
14.12 	to the trunk highway fund on December 31, 
14.13 	2015, and December 31, 2016, respectively, 
14.14 	in order to reimburse the trunk highway 
14.15 	fund for expenses not related to the fund. 
14.16 	These represent amounts appropriated out 
14.17 	of the trunk highway fund for highway 
14.18 	user tax distribution fund purposes in the 
14.19 	administration and related services program.
14.20 	$716,000 in each year is from the highway 
14.21 	user tax distribution fund for transfer by the 
14.22 	commissioner of management and budget to 
14.23 	the general fund on December 31, 2015, and 
14.24 	December 31, 2016, respectively, in order to 
14.25 	reimburse the general fund for expenses not 
14.26 	related to the fund. These represent amounts 
14.27 	appropriated out of the general fund for 
14.28 	operation of the criminal justice data network 
14.29 	related to driver and motor vehicle licensing.

14.30	Subd. 3.State Patrol
 		98,289,000
		100,261,000

14.31	Appropriations by Fund
	
14.32		2016
	2017
	
14.33	General
	8,072,000
	8,184,000
	
14.34	Trunk Highway
	89,410,000
	91,249,000
	
14.35	Highway User
	807,000
	828,000

15.1	(a) Patrolling Highways
		82,231,000
		83,857,000

15.2	Appropriations by Fund
	
15.3		2016
	2017
	
15.4	General
	37,000
	37,000
	
15.5	Trunk Highway
	81,387,000
	82,992,000
	
15.6	Highway User
	807,000
	828,000
	
15.7 	$975,000 is appropriated from the trunk 
15.8 	highway fund to the commissioner of public 
15.9 	safety in fiscal year 2016 to purchase a single 
15.10 	engine aircraft for the State Patrol.

15.11	(b) Commercial Vehicle Enforcement
		8,023,000
		8,257,000

15.12	(c) Capitol Security
		8,035,000
		8,147,000
	
15.13 	This appropriation is from the general fund.
15.14 	The commissioner may not (1) spend 
15.15 	any money from the trunk highway fund 
15.16 	for capitol security or (2) permanently 
15.17 	transfer any state trooper from the patrolling 
15.18 	highways activity to capitol security.

15.19	Subd. 4.Driver and Vehicle Services
 		60,105,000
		60,823,000

15.20	Appropriations by Fund
	
15.21		2016
	2017
	
15.22	Highway User
	8,236,000
	8,236,000
	
15.23	Special Revenue
	51,868,000
	52,586,000
	
15.24	Trunk Highway
	1,000
	1,000
	
15.25 	$59,000 in each year is appropriated from 
15.26 	the vehicle services operating account in 
15.27 	the special revenue fund under Minnesota 
15.28 	Statutes, section 299A.705, subdivision 1, to 
15.29 	the commissioner of public safety to create 
15.30 	a Data Services Unit within the Division of 
15.31 	Driver and Vehicle Services.
15.32 	$31,000 in each year is appropriated from 
15.33 	the driver services operating account in 
15.34 	the special revenue fund under Minnesota 
16.1 	Statutes, section 299A.705, subdivision 2, to 
16.2 	the commissioner of public safety to create 
16.3 	a Data Services Unit within the Division of 
16.4 	Driver and Vehicle Services.
16.5 	$1,200,000 in each year is appropriated from 
16.6 	the vehicle services operating account in 
16.7 	the special revenue fund under Minnesota 
16.8 	Statutes, section 299A.705, subdivision 1, to 
16.9 	the commissioner of public safety to pay for 
16.10 	increased costs incurred to purchase, deliver, 
16.11 	and mail license plates, registration stickers, 
16.12 	and registration notices under Minnesota 
16.13 	Statutes, section 168.381, subdivision 4, 
16.14 	paragraph (c).

16.15	Subd. 5.Traffic Safety
 		446,000
		457,000

16.16	Subd. 6.Pipeline Safety
 		1,371,000
		1,388,000
	
16.17 	This appropriation is from the pipeline safety 
16.18 	account in the special revenue fund.

16.19 	ARTICLE 2
16.20 	BONDING

16.21 	Section 1. BOND APPROPRIATIONS.
 16.22 	The sums shown in the column under "Appropriations" are appropriated from the 
16.23 	bond proceeds account in the trunk highway fund to the state agencies or officials indicated, 
16.24 	to be spent for public purposes. Appropriations of bond proceeds must be spent as 
16.25 	authorized by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified, 
16.26 	money appropriated in this article for a capital program or project may be used to pay state 
16.27 	agency staff costs that are attributed directly to the capital program or project in accordance 
16.28 	with accounting policies adopted by the commissioner of management and budget.

16.29	SUMMARY
	
16.30	Department of Transportation
	$
	2,000,000,000
	
16.31	Department of Management and Budget
		2,000,000
	
16.32	TOTAL
	$
	2,002,000,000

16.33				APPROPRIATIONS

17.1
17.2	Sec. 2. DEPARTMENT OF 
TRANSPORTATION
 			$
	2,000,000,000
	
17.3 	(a) Of the appropriation in this section, 
17.4 	$200,000,000 each year for eight years is 
17.5 	to the commissioner of transportation for 
17.6 	the corridors of commerce program under 
17.7 	Minnesota Statutes, section 161.088, and 
17.8 	$100,000,000 each year for four years 
17.9 	is to the commissioner of transportation 
17.10 	for the construction, reconstruction, and 
17.11 	improvement of trunk highways, including 
17.12 	design-build contracts and use of consultants 
17.13 	to support these activities. In total, the 
17.14 	appropriations under this section are 
17.15 	available in the amounts of:
17.16 	$300,000,000 in fiscal year 2016;
17.17 	$300,000,000 in fiscal year 2017;
17.18 	$300,000,000 in fiscal year 2018;
17.19 	$300,000,000 in fiscal year 2019;
17.20 	$200,000,000 in fiscal year 2020;
17.21 	$200,000,000 in fiscal year 2021;
17.22 	$200,000,000 in fiscal year 2022; and
17.23 	$200,000,000 in fiscal year 2023.
17.24 	The commissioner may use up to 17 percent 
17.25 	of the amount each year for program delivery.
17.26 	(b) In any fiscal year covered by this 
17.27 	appropriation, the commissioner may 
17.28 	identify projects based on previous selection 
17.29 	processes or may perform a new selection.
17.30 	(c) The appropriation in this section cancels 
17.31 	as specified under Minnesota Statutes, section 
17.32 	16A.642, except that the commissioner of 
17.33 	management and budget shall count the start 
18.1 	of authorization for issuance of state bonds 
18.2 	as the first day of the fiscal year during 
18.3 	which the bonds are available to be issued as 
18.4 	specified under paragraph (a), and not as the 
18.5 	date of enactment of this section.

18.6	Sec. 3. BOND SALE EXPENSES
 			$
	2,000,000
	
18.7 	This appropriation is to the commissioner 
18.8 	of management and budget for bond 
18.9 	sale expenses under Minnesota Statutes, 
18.10 	sections 16A.641, subdivision 8, and 167.50, 
18.11 	subdivision 4, and is effective through 2024.

18.12 	Sec. 4. BOND SALE AUTHORIZATION.
 18.13 	To provide the money appropriated in this article from the bond proceeds account in 
18.14 	the trunk highway fund, the commissioner of management and budget shall sell and issue 
18.15 	bonds of the state in an amount up to $2,002,000,000 in the manner, upon the terms, and 
18.16 	with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the 
18.17 	Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested 
18.18 	by the commissioner of transportation. The proceeds of the bonds, except accrued interest 
18.19 	and any premium received from the sale of the bonds, must be deposited in the bond 
18.20 	proceeds account in the trunk highway fund.

18.21 	Sec. 5. EFFECTIVE DATE.
 18.22 	This article is effective July 1, 2015.

18.23 	ARTICLE 3
18.24 	MOTOR FUELS GROSS RECEIPTS TAX

18.25 	Section 1. [296A.085] MOTOR FUELS GROSS RECEIPTS TAX.
18.26 		Subdivision 1.Imposition. In addition to other taxes imposed on the use of motor 
18.27 	fuels under this chapter, a motor fuels gross receipts tax is imposed on the first licensed 
18.28 	distributor receiving motor fuel for use in motor vehicles. The motor fuels gross receipts 
18.29 	tax is imposed at the rate of six and one-half percent of the average wholesale price of 
18.30 	gasoline for Minnesota as calculated in subdivisions 3 and 4. The motor fuels gross 
18.31 	receipts tax is imposed on all motor fuel, in either a liquid or gaseous form.
19.1 		Subd. 2.Exemptions. Subdivision 1 does not apply to gasoline, denatured ethanol, 
19.2 	special fuel, or alternative fuel purchased by an entity described in section 296A.07, 
19.3 	subdivision 4, or 296A.08, subdivision 3.
19.4 		Subd. 3.Calculation of tax amount per gallon. (a) The tax imposed under this 
19.5 	section must be calculated by converting the motor fuels gross receipts tax amount 
19.6 	into a tax rate per gallon. The commissioner of revenue will determine and publish the 
19.7 	motor fuels gross receipts tax amount per gallon annually. The amount is determined by 
19.8 	multiplying the previous calendar year's average wholesale gasoline price for Minnesota, 
19.9 	for all grades of a gallon of gasoline, by six and one-half percent. The wholesale price 
19.10 	used shall not include any tax or fee that can be assessed by the state of Minnesota or the 
19.11 	United States government. The wholesale price published by the United States Energy 
19.12 	Information Administration must be used to determine the motor fuels gross receipts tax 
19.13 	amount per gallon. The minimum average wholesale price to be used for this calculation 
19.14 	is $2.50 per gallon. The motor fuels gross receipts tax amount per gallon will be in effect 
19.15 	for fuel received during a 12-month period from the next July 1 to June 30. By May 1 
19.16 	of each year, the commissioner will publish the upcoming fiscal year's motor fuels gross 
19.17 	receipts tax amounts per gallon and the current gasoline excise tax amount per gallon. 
19.18 	All amounts will be stated in cents per gallon rounded to the nearest one-tenth of a cent, 
19.19 	disregarding amounts less than .05 cents and increasing amounts of .05 cents to .099 
19.20 	cents to the next highest one-tenth of a cent.
19.21 	(b) For the period of October 1, 2015, through June 30, 2016, the motor fuels gross 
19.22 	receipts tax amount per gallon of gasoline is six and one-half percent of the greater of 
19.23 	$2.50 or the average wholesale gasoline price for Minnesota, for all grades of a gallon of 
19.24 	gasoline, for calendar year 2014, as published by the United States Energy Information 
19.25 	Administration. The commissioner must publish the rates before August 1, 2015.
19.26 		Subd. 4.Calculation of tax amount per gallon for other motor fuels. (a) The 
19.27 	motor fuels gross receipts tax on other motor fuels must be computed at the following 
19.28 	tax rate:
19.29 	(1) the tax rate per gallon of E85 is 71 percent of the motor fuels gross receipts tax 
19.30 	amount per gallon for gasoline, rounded to the nearest tenth of a cent per gallon;
19.31 	(2) the tax rate per gallon of M85 is 57 percent of the motor fuels gross receipts tax 
19.32 	amount per gallon for gasoline, rounded to the nearest tenth of a cent per gallon;
19.33 	(3) the tax rate per gallon of Liquefied Petroleum Gas (LPG) is 75 percent of the 
19.34 	motor fuels gross receipts tax amount per gallon for gasoline, rounded to the nearest 
19.35 	tenth of a cent per gallon;
20.1 	(4) the tax rate per gallon of Liquid Natural Gas (LNG) is 60 percent of the motor 
20.2 	fuels gross receipts tax amount per gallon for gasoline, rounded to the nearest tenth of a 
20.3 	cent per gallon; and
20.4 	(5) the tax rate per thousand cubic feet of Compressed Natural Gas (CNG) is the 
20.5 	same as the motor fuels gross receipts tax amount per gallon of gasoline.
20.6 	(b) The tax rate per gallon of all other special fuel used as a motor fuel is the 
20.7 	same as the motor fuels gross receipts tax amount per gallon of gasoline as specified in 
20.8 	subdivision 3.
20.9 		Subd. 5.Administrative provisions. The motor fuels gross receipts tax shall be 
20.10 	paid and filed on a return, as prescribed by the commissioner, in the same manner and time 
20.11 	as prescribed for gasoline tax as set forth in section 296A.15.
20.12 		Subd. 6.Deposit of revenues. The commissioner shall deposit the revenues from 
20.13 	the motor fuels gross receipts tax into the highway user tax distribution fund.

20.14 	EFFECTIVE DATE. This section is effective the day following final enactment, 
20.15 	and applies to motor fuels received after September 30, 2015.

20.16 	Sec. 2. Minnesota Statutes 2014, section 296A.11, is amended to read:
20.17 	296A.11 SELLER MAY COLLECT TAX.
20.18 	A person who directly or indirectly pays a gasoline or special fuel tax or motor fuels 
20.19 	gross receipts tax as provided in this chapter and who does not in fact use the gasoline or 
20.20 	special fuel in motor vehicles in this state or receive, store, or withdraw it from storage 
20.21 	to be used personally for the purpose of producing or generating power for propelling 
20.22 	aircraft, but sells or otherwise disposes of the same, except as provided in section 296A.16, 
20.23 	subdivision 3, is hereby authorized to collect, from the person to whom the gasoline or 
20.24 	special fuel is so sold or disposed of, the tax so paid, and is hereby required, upon request, 
20.25 	to make, sign, and deliver to such person an invoice of such sale or disposition. The sums 
20.26 	collected must be held as a special fund in trust for the state of Minnesota.

20.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.28 	Sec. 3. Minnesota Statutes 2014, section 296A.12, is amended to read:
20.29 	296A.12 GASOLINE AND SPECIAL FUEL TAX AND MOTOR FUELS 
20.30 	GROSS RECEIPTS TAX IN LIEU OF OTHER TAXES.
20.31 	Gasoline and special fuel excise taxes and motor fuels gross receipts tax shall be 
20.32 	in lieu of all other taxes imposed upon the business of selling or dealing in gasoline or 
20.33 	special fuel, whether imposed by the state or by any of its political subdivisions, but are in 
21.1 	addition to all ad valorem taxes now imposed by law. Nothing in this chapter is construed 
21.2 	as prohibiting the governing body of any city of this state from licensing and regulating 
21.3 	sucha business where its authority is conferred by state law or city charter.

21.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.5 	Sec. 4. Minnesota Statutes 2014, section 296A.16, subdivision 1, is amended to read:
21.6 		Subdivision 1.Credit or refund of gasoline or special fuel tax paid. The 
21.7 	commissioner shall allow the distributor credit or refund of the excise and motor fuels 
21.8 	gross receipts tax paid on gasoline and special fuel:
21.9 	(1) exported or sold for export from the state, other than in the supply tank of a 
21.10 	motor vehicle or of an aircraft;
21.11 	(2) sold to the United States government to be used exclusively in performing its 
21.12 	governmental functions and activities or to any "cost plus a fixed fee" contractor employed 
21.13 	by the United States government on any national defense project;
21.14 	(3) if the fuel is placed in a tank used exclusively for residential heating;
21.15 	(4) destroyed by accident while in the possession of the distributor;
21.16 	(5) in error;
21.17 	(6) in the case of gasoline only, sold for storage in an on-farm bulk storage tank, if 
21.18 	the tax was not collected on the sale; and
21.19 	(7) in such other cases as the commissioner may permit, consistent with the provisions 
21.20 	of this chapter and other laws relating to the gasoline and special fuel excise taxes.

21.21 	EFFECTIVE DATE. This section is effective October 1, 2015.

21.22 	Sec. 5. Minnesota Statutes 2014, section 296A.16, subdivision 2, is amended to read:
21.23 		Subd. 2.Fuel used in other vehicle; claim for refund. Any person who buys and 
21.24 	uses gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles 
21.25 	except as provided in clause (2), or motorboats, or special fuel for a qualifying purpose 
21.26 	other than use in licensed motor vehicles, and who paid the excise and motor fuels gross 
21.27 	receipts tax directly or indirectly through the amount of the tax being included in the price 
21.28 	of the gasoline or special fuel, or otherwise, shall be reimbursed and repaid the amount 
21.29 	of the tax paid upon filing with the commissioner a claim for refund in the form and 
21.30 	manner prescribed by the commissioner, and containing the information the commissioner 
21.31 	shall require. By signing any such claim which is false or fraudulent, the applicant shall 
21.32 	be subject to the penalties provided in this chapter for knowingly making a false claim. 
21.33 	The claim shall set forth the total amount of the gasoline so purchased and used by the 
22.1 	applicant other than in motor vehicles, or special fuel purchased and used by the applicant 
22.2 	other than in licensed motor vehicles, and shall state when and for what purpose it was 
22.3 	used. When a claim contains an error in computation or preparation, the commissioner 
22.4 	is authorized to adjust the claim in accordance with the evidence shown on the claim or 
22.5 	other information available to the commissioner. The commissioner, on being satisfied 
22.6 	that the claimant is entitled to the payments, shall approve the claim and transmit it to the 
22.7 	commissioner of management and budget. The words "gasoline" or "special fuel" as used 
22.8 	in this subdivision do not include aviation gasoline or special fuel for aircraft. Gasoline or 
22.9 	special fuel bought and used for a "qualifying purpose" means:
22.10 	(1) Gasoline or special fuel used in carrying on a trade or business, used on a farm 
22.11 	situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" 
22.12 	have the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue 
22.13 	Code as defined in section 289A.02, subdivision 7.
22.14 	(2) Gasoline or special fuel used for off-highway business use.
22.15 	(i) "Off-highway business use" means any use off the public highway by a person in 
22.16 	that person's trade, business, or activity for the production of income.
22.17 	(ii) Off-highway business use includes use of a passenger snowmobile off the public 
22.18 	highways as part of the operations of a resort as defined in section 157.15, subdivision 11; 
22.19 	and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not 
22.20 	including fuel consumed during idling time.
22.21 	(iii) Off-highway business use does not include use as a fuel in a motor vehicle 
22.22 	which, at the time of use, is registered or is required to be registered for highway use under 
22.23 	the laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu 
22.24 	of a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in 
22.25 	this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the 
22.26 	fuel tank of a licensed motor vehicle and must be stored in a separate supply tank.
22.27 	(3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, 
22.28 	manufactured in Minnesota, and shipped by interstate carrier to destinations in other 
22.29 	states or foreign countries.

22.30 	EFFECTIVE DATE. This section is effective October 1, 2015.

22.31 	Sec. 6. Minnesota Statutes 2014, section 296A.16, subdivision 3, is amended to read:
22.32 		Subd. 3.Destruction by accident; refund to dealer. Notwithstanding the 
22.33 	provisions of subdivision 1, the commissioner shall allow a dealer a refund of:
23.1 	(1) the excise and motor fuels gross receipts tax paid by the distributor on gasoline, 
23.2 	undyed diesel fuel, or undyed kerosene destroyed by accident while in the possession of 
23.3 	the dealer; or
23.4 	(2) the excise and motor fuels gross receipts tax paid by a distributor or special fuels 
23.5 	dealer on other special fuels destroyed by accident while in the possession of the dealer.

23.6 	EFFECTIVE DATE. This section is effective October 1, 2015.

23.7 	Sec. 7. Minnesota Statutes 2014, section 296A.16, subdivision 4, is amended to read:
23.8 		Subd. 4.Refrigerator units; refunds. Notwithstanding the provisions of 
23.9 	subdivision 1, the commissioner shall allow a special fuel dealer a refund of the excise and 
23.10 	motor fuels gross receipts tax paid on fuel sold directly into a supply tank of a refrigeration 
23.11 	unit with a separate engine and used exclusively by that refrigeration unit. A claim for 
23.12 	refund may be filed as provided in this section.

23.13 	EFFECTIVE DATE. This section is effective October 1, 2015.

23.14 	Sec. 8. Minnesota Statutes 2014, section 296A.16, subdivision 4a, is amended to read:
23.15 		Subd. 4a.Undyed kerosene; refunds. Notwithstanding subdivision 1, the 
23.16 	commissioner shall allow a refund of the excise and motor fuels gross receipts tax paid 
23.17 	on undyed kerosene used exclusively for a purpose other than as fuel for a motor vehicle 
23.18 	using the streets and highways. To obtain a refund, the person making the sale to an end 
23.19 	user must meet the Internal Revenue Service requirements for sales from a blocked pump. 
23.20 	A claim for a refund may be filed as provided in this section.

23.21 	EFFECTIVE DATE. This section is effective October 1, 2015.

23.22 	Sec. 9. Minnesota Statutes 2014, section 296A.16, subdivision 4b, is amended to read:
23.23 		Subd. 4b.Racing gasoline; refunds. Notwithstanding subdivision 1, the 
23.24 	commissioner shall allow a licensed distributor a refund of the excise and motor fuels 
23.25 	gross receipts tax paid on leaded gasoline of 110 octane or more that does not meet ASTM 
23.26 	specification D4814 for gasoline and that is sold in bulk for use in nonregistered motor 
23.27 	vehicles. A claim for a refund may be filed as provided for in this section.

23.28 	EFFECTIVE DATE. This section is effective October 1, 2015.

23.29 	Sec. 10. Minnesota Statutes 2014, section 296A.16, subdivision 5, is amended to read:
24.1 		Subd. 5.Qualifying service station credit. Notwithstanding any other provision of 
24.2 	law to the contrary, the combined excise and motor fuels gross receipts tax imposed on 
24.3 	gasoline, undyed diesel fuel, or undyed kerosene delivered to a qualified service station 
24.4 	may not exceed, or must be reduced to, a rate not more than three cents per gallon above 
24.5 	the state tax rate imposed on such products sold by a service station in a contiguous state 
24.6 	located within the distance indicated in this subdivision. A distributor shall be allowed a 
24.7 	credit or refund for the amount of reduction computed in accordance with this subdivision. 
24.8 	For purposes of this subdivision, a "qualifying service station" means a service station 
24.9 	located within 7.5 miles, measured by the shortest route by public road, from a service 
24.10 	station selling like product in the contiguous state.

24.11 	EFFECTIVE DATE. This section is effective October 1, 2015.

24.12 	Sec. 11. Minnesota Statutes 2014, section 296A.18, subdivision 2, is amended to read:
24.13 		Subd. 2.Motorboat. Approximately 1-1/2 percent of all gasoline received in this 
24.14 	state and 1-1/2 percent of all gasoline produced or brought into this state, except gasoline 
24.15 	used for aviation purposes, is being used as fuel for the operation of motorboats on the 
24.16 	waters of this state and of the total revenue derived from the imposition of the gasoline 
24.17 	fuel tax and motor fuels gross receipts tax on gasoline for uses other than for aviation 
24.18 	purposes, 1-1/2 percent of the revenue is the amount of tax on fuel used in motorboats 
24.19 	operated on the waters of this state. The amount of unrefunded tax paid on gasoline used 
24.20 	for motor boat purposes as computed in this chapter shall be paid into the state treasury 
24.21 	and credited to a water recreation account in the special revenue fund for acquisition, 
24.22 	development, maintenance, and rehabilitation of sites for public access and boating 
24.23 	facilities on public waters; lake and river improvement; and boat and water safety.

24.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

24.25 	Sec. 12. Minnesota Statutes 2014, section 296A.18, subdivision 3, is amended to read:
24.26 		Subd. 3.Snowmobile. Approximately one percent of all gasoline received in and 
24.27 	produced or brought into this state, except gasoline used for aviation purposes, is being 
24.28 	used as fuel for the operation of snowmobiles in this state, and of the total revenue derived 
24.29 	from the imposition of the gasoline fuel tax and motor fuels gross receipts tax on gasoline 
24.30 	for uses other than for aviation purposes, one percent of such revenues is the amount of 
24.31 	tax on fuel used in snowmobiles operated in this state.

24.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.1 	Sec. 13. Minnesota Statutes 2014, section 296A.18, subdivision 4, is amended to read:
25.2 		Subd. 4.All-terrain vehicle. Approximately 0.27 of one percent of all gasoline 
25.3 	received in or produced or brought into this state, except gasoline used for aviation 
25.4 	purposes, is being used for the operation of all-terrain vehicles in this state, and of the 
25.5 	total revenue derived from the imposition of the gasoline fuel tax and motor fuels gross 
25.6 	receipts tax on gasoline, 0.27 of one percent is the amount of tax on fuel used in all-terrain 
25.7 	vehicles operated in this state.

25.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.9 	Sec. 14. Minnesota Statutes 2014, section 296A.18, subdivision 5, is amended to read:
25.10 		Subd. 5.Off-highway motorcycles. Approximately 0.046 of one percent of 
25.11 	all gasoline received or produced in or brought into this state, except gasoline used for 
25.12 	aviation purposes, is being used for the operation of off-highway motorcycles in this state, 
25.13 	and of the total revenue derived from the imposition of the gasoline fuel tax and motor 
25.14 	fuels gross receipts tax on gasoline for uses other than for aviation purposes, 0.046 of one 
25.15 	percent is the amount of tax on fuel used in off-highway motorcycles operated in this state.

25.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.17 	Sec. 15. Minnesota Statutes 2014, section 296A.18, subdivision 6, is amended to read:
25.18 		Subd. 6.Off-road vehicle. Approximately 0.164 of one percent of all gasoline 
25.19 	received or produced in or brought into this state, except gasoline used for aviation 
25.20 	purposes, is being used for the off-road operation of off-road vehicles, as defined in 
25.21 	section 84.797, in this state, and of the total revenue derived from the imposition of the 
25.22 	gasoline fuel tax and motor fuels gross receipts tax on gasoline for uses other than aviation 
25.23 	purposes, 0.164 of one percent is the amount of tax on fuel used for off-road operation 
25.24 	of off-road vehicles in this state.

25.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.26 	Sec. 16. Minnesota Statutes 2014, section 296A.18, subdivision 7, is amended to read:
25.27 		Subd. 7.Forest road. Approximately 0.116 percent of the total annual unrefunded 
25.28 	revenue from the gasoline fuel tax and motor fuels gross receipts tax on all gasoline and 
25.29 	special fuel received in, produced, or brought into this state, except gasoline and special 
25.30 	fuel used for aviation purposes, is derived from the operation of motor vehicles on state 
25.31 	forest roads and county forest access roads. This revenue, together with interest and 
25.32 	penalties for delinquency in payment, paid or collected pursuant to the provisions of 
26.1 	this chapter, is appropriated from the highway user tax distribution fund and must be 
26.2 	transferred and credited in equal installments on July 1 and January 1 to the state forest 
26.3 	road account established in section 89.70. Of this amount, 0.0605 percent is annually 
26.4 	derived from motor vehicles operated on state forest roads and 0.0555 percent is annually 
26.5 	derived from motor vehicles operated on county forest access roads in this state. An 
26.6 	amount equal to 0.0555 percent of the unrefunded revenue must be annually transferred to 
26.7 	counties for the management and maintenance of county forest roads.

26.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

26.9 	ARTICLE 4
26.10 	METROPOLITAN AREA TRANSIT SALES AND USE TAX

26.11 	Section 1. Minnesota Statutes 2014, section 297A.99, subdivision 1, is amended to read:
26.12 		Subdivision 1.Authorization; scope. (a) A political subdivision of this state may 
26.13 	impose a general sales tax (1) under section 297A.992, (2) under section 297A.9925, (3)
26.14 	under section 297A.993, (3) (4) if permitted by special law, or (4) (5) if the political 
26.15 	subdivision enacted and imposed the tax before January 1, 1982, and its predecessor 
26.16 	provision.
26.17 	(b) This section governs the imposition of a general sales tax by the political 
26.18 	subdivision. The provisions of this section preempt the provisions of any special law:
26.19 	(1) enacted before June 2, 1997, or
26.20 	(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law 
26.21 	provision from this section's rules by reference.
26.22 	(c) This section does not apply to or preempt a sales tax on motor vehicles or a 
26.23 	special excise tax on motor vehicles.
26.24 	(d) A political subdivision may not advertise or expend funds for the promotion of a 
26.25 	referendum to support imposing a local option sales tax.
26.26 	(e) Notwithstanding paragraph (d), a political subdivision may expend funds to:
26.27 	(1) conduct the referendum;
26.28 	(2) disseminate information included in the resolution adopted under subdivision 2;
26.29 	(3) provide notice of, and conduct public forums at which proponents and opponents 
26.30 	on the merits of the referendum are given equal time to express their opinions on the 
26.31 	merits of the referendum;
26.32 	(4) provide facts and data on the impact of the proposed sales tax on consumer 
26.33 	purchases; and
27.1 	(5) provide facts and data related to the programs and projects to be funded with 
27.2 	the sales tax.

27.3 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
27.4 	September 30, 2015.

27.5 	Sec. 2. [297A.9925] METROPOLITAN AREA TRANSIT SALES AND USE 
27.6 	TAX; RATE; IMPOSITION; USES; PRIORITIES.
27.7 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
27.8 	the following meanings:
27.9 	(1) "metropolitan area" or "area" has the meaning defined in section 473.121, 
27.10 	subdivision 2;
27.11 	(2) "Metropolitan Council" or "council" means the Metropolitan Council established 
27.12 	by section 473.123; and
27.13 	(3) "local governmental unit" means any county, city, town, school district, special 
27.14 	district, or other political subdivisions or public corporation, other than the council or a 
27.15 	metropolitan agency, lying in whole or in part within the metropolitan area.
27.16 		Subd. 2.Metropolitan area transit sales tax imposition; rate. Notwithstanding 
27.17 	section 297A.99, subdivisions 1, 2, and 3, 477A.016, or any other law, a metropolitan area 
27.18 	transit sales and use tax is imposed at a rate of one-half of one percent on retail sales and 
27.19 	uses taxable under this chapter occurring within the metropolitan area.
27.20 		Subd. 3.Administration; collection; enforcement. Except as otherwise provided 
27.21 	in this section, the provisions of section 297A.99, subdivisions 4 and 6 to 12a, govern the 
27.22 	administration, collection, and enforcement of the tax authorized under this section.
27.23 		Subd. 4.Uses; consistency with transportation policy plan. (a) The Metropolitan 
27.24 	Council shall utilize the proceeds of the metropolitan area transit sales and use tax imposed 
27.25 	under subdivision 2 for transit purposes within the metropolitan area. This may include, 
27.26 	but is not limited to, transit operations, capital improvements, design, engineering and 
27.27 	environmental work, acquisition of real property, transit planning and feasibility studies, 
27.28 	and to provide grants to local governmental units for transit purposes or for bicycle and 
27.29 	pedestrian projects as specified in subdivision 5.
27.30 	(b) Projects funded with the metropolitan area transit sales and use tax proceeds 
27.31 	must be consistent with the long-range transportation policy plan adopted by the council 
27.32 	under section 473.146.
27.33 		Subd. 5.Priorities. (a) The council shall allocate revenues from the taxes imposed 
27.34 	under this section in accordance with the transit system development and financial plan 
27.35 	required under section 473.1462, and in conformance with the following priority order:
28.1 	(1) payment of debt service necessary on bonds or other obligations issued under 
28.2 	subdivision 6;
28.3 	(2) operating and capital costs to preserve existing bus services that are in 
28.4 	conformance with regional transit performance standards as specified in the council's 
28.5 	transportation policy plan;
28.6 	(3) 100 percent of the net operating costs of existing arterial bus rapid transit lines 
28.7 	and 50 percent of the net operating costs of other existing transitways;
28.8 	(4) grants required under paragraph (b);
28.9 	(5) operating and capital costs for the expansion and modernization of regional bus 
28.10 	services, including replacement services provided under section 473.388, in accordance 
28.11 	with the regional service improvement plan adopted by the council;
28.12 	(6) operating and capital costs for expansion and improvement of regional 
28.13 	transitways; and
28.14 	(7) any other costs payable in accordance with subdivision 4.
28.15 	(b) After accounting for the amounts necessary for paragraph (a), clauses (1) , (2), 
28.16 	and (3), the council shall make five percent of the remaining revenues available through 
28.17 	grants to local units of government within the metropolitan area for bicycle and pedestrian 
28.18 	projects. The council shall establish a grant program, criteria, and oversight procedures 
28.19 	for regional bicycle and pedestrian project grants on at least a biennial schedule.
28.20 		Subd. 6.Revenue bonds. (a) In addition to other authority granted in this section, 
28.21 	the council may, by resolution, authorize the issuance and sale of revenue bonds, notes, 
28.22 	or other obligations to provide funds to implement the council's regional transit system 
28.23 	development and financial plan and to refund bonds issued under this subdivision.
28.24 	(b) The bonds shall be payable from and secured by a pledge of the revenues 
28.25 	identified in the transit system development and financial plan, including without 
28.26 	limitation all or any part of revenues received from the metropolitan area transit sales and 
28.27 	use tax imposed under subdivision 2, and associated investment earnings on debt proceeds. 
28.28 	The council may by resolution authorize the issuance of the bonds as general obligations 
28.29 	of the council. The bonds shall be sold, issued, and secured in the manner provided in 
28.30 	chapter 475, and the council shall have the same powers and duties as a municipality and 
28.31 	its governing body in issuing bonds under chapter 475, except that no election shall be 
28.32 	required and the net debt limitations in chapter 475 shall not apply to such bonds. The 
28.33 	proceeds of the bonds may also be used to fund necessary reserves and to pay credit 
28.34 	enhancement fees, issuance costs, and other financing costs during the life of the debt.
28.35 	(c) The bonds may be secured by a bond resolution, or a trust indenture entered into 
28.36 	by the council with a corporate trustee within or outside the state, which shall define the 
29.1 	revenues and bond proceeds pledged for the payment and security of the bonds. The 
29.2 	pledge shall be a valid charge on the revenues received under section 297A.99, subdivision 
29.3 	11. Neither the state, nor any municipality or political subdivision except the council, 
29.4 	nor any member or officer or employee of the council, is liable on the obligations. No 
29.5 	mortgage or security interest in any tangible real or personal property shall be granted to 
29.6 	the bondholders or the trustee, but they shall have a valid security interest in the revenues 
29.7 	and bond proceeds received by the council and pledged to the payment of the bonds. In the 
29.8 	bond resolution or trust indenture, the council may make such covenants as it determines 
29.9 	to be reasonable for the protection of the bondholders.

29.10 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
29.11 	September 30, 2015, and applies in the counties of Anoka, Carver, Dakota, Hennepin, 
29.12 	Ramsey, Scott, and Washington.

29.13 	Sec. 3. [473.1462] REGIONAL TRANSIT SYSTEM DEVELOPMENT AND 
29.14 	FINANCIAL PLAN.
29.15 		Subdivision 1.Annual regional transit system development and financial plan.
 29.16 	By December 15, 2015, and annually thereafter, the council shall prepare and adopt a 
29.17 	comprehensive regional transit system development and financial plan that describes and 
29.18 	accounts for the transit system operating and capital investments planned to occur over 
29.19 	at least the next ten calendar years. The council's adopted annual transit operating and 
29.20 	capital budgets must be consistent with the transit system development and financial 
29.21 	plan. The transit system development and financial plan may be amended as needed. The 
29.22 	council shall annually submit the plan for review by the Legislative Commission on 
29.23 	Metropolitan Government under section 3.8841.
29.24 		Subd. 2.Details on transit operations and capital investments; transit revenues.
 29.25 	The regional transit system development and financial plan must contain detail on the 
29.26 	transit operations and capital investments expected for all regional public transit services 
29.27 	funded in whole or in part by the council, including but not limited to regular route bus 
29.28 	services including services operated by the council and replacement service providers under 
29.29 	section 473.388; Metro Mobility special transportation services provided under section 
29.30 	473.386; other dial-a-ride and vanpool services provided by the council; and all regional 
29.31 	transitway operations and capital investments with detail provided for each existing or 
29.32 	new transitway line. The plan must also account for all transit revenues expected to be 
29.33 	available to the council including but not limited to metropolitan area transit sales and use 
29.34 	tax revenue available from the tax imposed under section 297A.9925, subdivision 2; transit 
29.35 	fare revenues; metropolitan area transit state general fund appropriations; motor vehicle 
30.1 	sales tax revenues available through the metropolitan transit assistance account under 
30.2 	section 16A.88, subdivision 2; federal transit funds; regional transit capital bonds issued 
30.3 	by the council pursuant to authorizations under section 473.39; and sales tax revenues 
30.4 	allocated to the council by the joint powers board under section 297A.992. The regional 
30.5 	transit system development and financial plan must be consistent with the adopted regional 
30.6 	transportation policy plan and provide detail on the specific transit operations and capital 
30.7 	investments expected in each year of the plan. The plan may account for the use of debt 
30.8 	financing and the issuance of bonds as authorized under section 297A.9925, subdivision 6.

30.9 	EFFECTIVE DATE. This section is effective July 1, 2015, and applies in the 
30.10 	counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

30.11 	Sec. 4.  REPEALER.
 30.12 	Minnesota Statutes 2014, section 473.4051, subdivision 2, is repealed.

30.13 	EFFECTIVE DATE. This section is effective July 1, 2015.

30.14 	ARTICLE 5
30.15 	TRANSPORTATION POLICY AND FINANCE

30.16 	Section 1. Minnesota Statutes 2014, section 16E.15, subdivision 2, is amended to read:
30.17 		Subd. 2.Software sale fund. (a) Except as provided in paragraph paragraphs (b)
30.18 	and (c), proceeds of from the sale or licensing of software products or services by the chief 
30.19 	information officer must be credited to the MN.IT services revolving fund. If a state 
30.20 	agency other than the Office of MN.IT Services has contributed to the development of 
30.21 	software sold or licensed under this section, the chief information officer may reimburse 
30.22 	the agency by discounting computer services provided to that agency.
30.23 	(b) Proceeds of from the sale or licensing of software products or services developed 
30.24 	by the Pollution Control Agency, or custom developed by a vendor for the agency, must be 
30.25 	credited to the environmental fund.
30.26 	(c) Proceeds from the sale or licensing of software products or services developed 
30.27 	by the Department of Transportation, or custom developed by a vendor for the agency, 
30.28 	using trunk highway funds, must be credited to the trunk highway fund.

30.29 	Sec. 2. Minnesota Statutes 2014, section 117.036, subdivision 2, is amended to read:
30.30 		Subd. 2.Appraisal. (a) Before commencing an eminent domain proceeding under 
30.31 	this chapter for an acquisition greater than $25,000, the acquiring authority must obtain at 
30.32 	least one appraisal for the property proposed to be acquired. In making the appraisal, the 
31.1 	appraiser must confer with one or more of the owners of the property, if reasonably possible.
31.2 	For acquisitions less than $25,000, the acquiring authority may obtain a minimum damage 
31.3 	acquisition report in lieu of an appraisal. In making the minimum damage acquisition 
31.4 	report, the qualified person with appraisal knowledge must confer with one or more of 
31.5 	the owners of the property, if reasonably possible. Notwithstanding section 13.44, the 
31.6 	acquiring authority must provide the owner with a copy of (1) each appraisal for property 
31.7 	acquisitions over $25,000, or (2) the minimum damage acquisition report for properties 
31.8 	under $25,000, the acquiring authority has obtained for the property at the time an offer is 
31.9 	made, but no later than 60 days before presenting a petition under section 117.055, and. 
31.10 	The acquiring authority must also inform the owner of the right to obtain an appraisal under 
31.11 	this section. Upon request, the acquiring authority must make available to the owner all 
31.12 	appraisals of the property for properties over $25,000, or the minimum damage acquisition 
31.13 	report for properties under $25,000. If the acquiring authority is considering both a full 
31.14 	and partial taking of the property, the acquiring authority shall obtain and provide the 
31.15 	owner with appraisals for both types of takings for properties over $25,000 for both types 
31.16 	of takings, or minimum damage acquisition reports for properties under $25,000.
31.17 	(b) The owner may obtain an appraisal by a qualified appraiser of the property 
31.18 	proposed to be acquired. The owner is entitled to reimbursement for the reasonable costs 
31.19 	of the appraisal from the acquiring authority up to a maximum of $1,500 for single family 
31.20 	and two-family residential property and minimum damage acquisitions and $5,000 for 
31.21 	other types of property, provided that the owner submits to the acquiring authority the 
31.22 	information necessary for reimbursement, including a copy of the owner's appraisal, 
31.23 	at least five days before a condemnation commissioners' hearing. For purposes of this 
31.24 	paragraph subdivision, a "minimum damage acquisition" means an interest in property 
31.25 	that a qualified person with appraisal knowledge having an understanding of the local real 
31.26 	estate market indicates can be acquired for a cost of $10,000 $25,000 or less.
31.27 	(c) The acquiring authority must pay the reimbursement to the owner within 30 
31.28 	days after receiving a copy of the appraisal and the reimbursement information. Upon 
31.29 	agreement between the acquiring authority and the owner, the acquiring authority may pay 
31.30 	the reimbursement directly to the appraiser.

31.31 	Sec. 3. Minnesota Statutes 2014, section 117.036, subdivision 4, is amended to read:
31.32 		Subd. 4.Use of appraisal at commissioners' hearing.  An appraisal or 
31.33 	minimum damage acquisition report must not be used or considered in a condemnation 
31.34 	commissioners' hearing, nor may the appraiser who prepared the appraisal or the person 
31.35 	who prepared the minimum damage acquisition report testify, unless a copy of the 
32.1 	appraiser's written report or the minimum damage acquisition report is provided to the 
32.2 	opposing party at least five days before the hearing.

32.3 	Sec. 4. Minnesota Statutes 2014, section 161.231, is amended to read:
32.4 	161.231 APPROPRIATION; PROCEEDS FROM LEASED STATE
32.5 	PROPERTY.
32.6 	There is appropriated annually from the fund or account in the state treasury to which 
32.7 	the rental money from the sale, lease, conveyance, or disposal of state leased property 
32.8 	is credited a sufficient amount of money to carry out the state's obligations under the 
32.9 	provisions of sections 15.16, 117.135, 117.226, 161.16, 161.202,161.23, subdivision 3,
32.10 	161.24, 161.241, 161.43, 161.433, 161.44, 161.442, and 272.68, subdivision 3, including 
32.11 	the inventorying, marketing, and property management activities required to sell, lease, 
32.12 	rent, permit, convey, or otherwise dispose of the land or the interest in the land. At the 
32.13 	discretion of the commissioner of transportation, money in the account at the end of each 
32.14 	biennium may cancel to the trunk highway fund.

32.15 	Sec. 5. Minnesota Statutes 2014, section 161.46, subdivision 2, is amended to read:
32.16 		Subd. 2.Relocation of facilities; reimbursement. (a) Whenever the commissioner 
32.17 	shall determine the relocation of any utility facility is necessitated by the construction of a 
32.18 	project on the routes of federally aided state trunk highways, including urban extensions 
32.19 	thereof, which routes are included within the National System of Interstate Highways, the 
32.20 	owner or operator of such utility facility shall relocate the same in accordance with the 
32.21 	order of the commissioner. After the completion of such relocation the cost thereof shall 
32.22 	be ascertained and paid by the state out of trunk highway funds; provided, however, the 
32.23 	amount to be paid by the state for such reimbursement shall not exceed the amount on 
32.24 	which the federal government bases its reimbursement for said interstate system.
32.25 	(b) Notwithstanding paragraph (a), any utility facility installed after August 1, 2015, 
32.26 	is not eligible for relocation reimbursement.

32.27 	Sec. 6. Minnesota Statutes 2014, section 162.18, is amended by adding a subdivision 
32.28 	to read:
32.29 		Subd. 6.Traffic signal timing optimization. (a) A road authority that has 
32.30 	ownership of a traffic signal on a principal arterial or roadway with an average daily traffic 
32.31 	greater than 20,000 vehicles per day must complete an inventory of all the traffic signals 
32.32 	under its ownership and submit it to the Department of Transportation district engineer. 
33.1 	The inventory shall include age of all signals, control equipment, communications, 
33.2 	detection type, timing plans in operation, and date of last timing optimization.
33.3 	(b) Based on the information from the inventory, a road authority subject to paragraph 
33.4 	(a) must develop a plan to implement a traffic signal system optimization plan that 
33.5 	re-evaluates traffic signal timing at least once every five years. Each road authority with a 
33.6 	traffic signal optimization plan must annually certify compliance with its signal timing plan. 
33.7 	Local road authorities with traffic signals meeting the requirements of this section must 
33.8 	submit the traffic signal certification as part of the annual maintenance expenditure report.

33.9 	EFFECTIVE DATE. This section is effective the day following final enactment. The 
33.10 	initial inventory under paragraph (a) must be submitted on or before December 30, 2015.

33.11 	Sec. 7. Minnesota Statutes 2014, section 168.013, subdivision 1a, is amended to read:
33.12 		Subd. 1a.Passenger automobile; hearse. (a) On passenger automobiles as defined 
33.13 	in section 168.002, subdivision 24, and hearses, except as otherwise provided, the tax 
33.14 	shall be an amount equal to a combination of the following:
33.15 	(1) $10 for those vehicles with registration periods beginning on or before June 30, 
33.16 	2018, and $20 for those vehicles with registration periods on or after July 1, 2018, plus
33.17 	(2) an additional tax equal to the following:
33.18 	(i) 1.25 percent of the base value. for those vehicles with registration periods ending 
33.19 	on or before June 30, 2015;
33.20 	(ii) 1.35 percent of the base value for those vehicles with registration periods 
33.21 	beginning on or after July 1, 2015, and before July 1, 2016;
33.22 	(iii) 1.45 percent of the base value for those vehicles with registration periods 
33.23 	beginning on or after July 1, 2016, and before July 1, 2017; and
33.24 	(iv) 1.50 percent of the base value for those vehicles with registration periods 
33.25 	beginning on or after July 1, 2017.
33.26 	(b) Subject to the classification provisions herein, "base value" means the 
33.27 	manufacturer's suggested retail price of the vehicle including destination charge using list 
33.28 	price information published by the manufacturer or determined by the registrar if no 
33.29 	suggested retail price exists, and shall not include the cost of each accessory or item of 
33.30 	optional equipment separately added to the vehicle and the suggested retail price.
33.31 	(c) If the manufacturer's list price information contains a single vehicle identification 
33.32 	number followed by various descriptions and suggested retail prices, the registrar shall 
33.33 	select from those listings only the lowest price for determining base value.
33.34 	(d) If unable to determine the base value because the vehicle is specially constructed, 
33.35 	or for any other reason, the registrar may establish such value upon the cost price to the 
34.1 	purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales 
34.2 	or use tax or any local sales or other local tax.
34.3 	(e) The registrar shall classify every vehicle in its proper base value class as follows:

34.4		FROM
		TO
	
34.5	$
	0
		$ 199.99
	
34.6	$
	200
		$ 399.99
	
34.7 	and thereafter a series of classes successively set in brackets having a spread of $200 
34.8 	consisting of such number of classes as will permit classification of all vehicles.
34.9 	(f) The base value for purposes of this section shall be the middle point between 
34.10 	the extremes of its class.
34.11 	(g) The registrar shall establish the base value, when new, of every passenger 
34.12 	automobile and hearse registered prior to the effective date of Extra Session Laws 1971, 
34.13 	chapter 31, using list price information published by the manufacturer or any nationally 
34.14 	recognized firm or association compiling such data for the automotive industry. If unable 
34.15 	to ascertain the base value of any registered vehicle in the foregoing manner, the registrar 
34.16 	may use any other available source or method. The registrar shall calculate tax using base 
34.17 	value information available to dealers and deputy registrars at the time the application for 
34.18 	registration is submitted. The tax on all previously registered vehicles shall be computed 
34.19 	upon the base value thus determined taking into account the depreciation provisions of 
34.20 	paragraph (h).
34.21 	(h) The annual additional tax must be computed upon a percentage of the base value 
34.22 	as follows: during the first year of vehicle life, upon 100 percent of the base value; for the 
34.23 	second year, 90 percent of such value; for the third year, 80 percent of such value; for the 
34.24 	fourth year, 70 percent of such value; for the fifth year, 60 percent of such value; for the 
34.25 	sixth year, 50 percent of such value; for the seventh year, 40 percent of such value; for the 
34.26 	eighth year, 30 percent of such value; for the ninth year, 20 percent of such value; for the 
34.27 	tenth year, ten percent of such value; for the 11th and each succeeding year, the sum of $25.
34.28 	(i) In no event shall the annual additional tax be less than $25.
34.29 	(j) For any vehicle previously registered in Minnesota, the annual additional tax 
34.30 	due under this subdivision must not exceed the smallest amount of annual additional 
34.31 	tax previously paid or due on the vehicle.

34.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

34.33 	Sec. 8. Minnesota Statutes 2014, section 168D.06, is amended to read:
34.34 	168D.06 FUEL LICENSE FEES.
35.1 	License fees paid to the commissioner under the International Fuel Tax Agreement 
35.2 	must be deposited in the vehicle services operating account in the special revenue fund 
35.3 	under section 299A.705. The commissioner shall charge an annual fuel license fee of 
35.4 	$15, and an annual application filing fee of $13 for quarterly reporting of fuel tax, and a 
35.5 	reinstatement fee of $100 to reinstate a revoked International Fuel Tax Agreement license.

35.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

35.7 	Sec. 9. Minnesota Statutes 2014, section 169.475, is amended by adding a subdivision 
35.8 	to read:
35.9 		Subd. 4.Repeat offenses; additional penalties. Any person who commits a second 
35.10 	or subsequent violation of subdivision 2 must pay a $50 fine for each violation.

35.11 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to 
35.12 	offenses committed on or after that date. 

35.13 	Sec. 10. [174.57] SNOW AND ICE CONTROL.
35.14 	The commissioner of transportation, upon written notification to the commissioner 
35.15 	of management and budget and the chairs and ranking minority members of the house 
35.16 	of representatives and senate committees having jurisdiction over transportation finance, 
35.17 	may transfer all or part of the unappropriated balance in the trunk highway fund to pay for 
35.18 	snow and ice control expenditures in years when the Department of Transportation spends 
35.19 	more than 110 percent of its budget for snow and ice control. The amount transferred is 
35.20 	appropriated for the purposes of the account to which it is transferred.

35.21 	Sec. 11. [219.016] RAILROAD COMPANY ASSESSMENT; ACCOUNT; 
35.22 	APPROPRIATION.
35.23 	(a) As provided in this section, the commissioner shall annually assess railroad 
35.24 	companies that are (1) defined as common carriers under section 218.011; (2) classified by 
35.25 	federal law or regulation as Class I Railroads or Class I Rail Carriers; and (3) operating in 
35.26 	this state.
35.27 	(b) The assessment must be by a division of the annual appropriation to the grade 
35.28 	crossing safety improvement account in equal proportion between carriers based on route 
35.29 	miles operated in Minnesota, assessed in equal amounts for 365 days of the calendar year.
35.30 	(c) The assessments must be deposited in the rail grade crossing safety improvement 
35.31 	account, which is created in the special revenue fund. Money in the account is 
35.32 	appropriated to the commissioner for the development, administration, and construction of 
36.1 	highway-rail grade crossing improvements on rail corridors transporting crude oil, and 
36.2 	other selected routes, including those carrying hazardous materials. Improvements may 
36.3 	include upgrades to existing protection systems, the closing of crossings and necessary 
36.4 	roadwork, as well as reconstruction of at-grade crossings to full grade separations. Funds 
36.5 	in the account are available until expended.

36.6 	Sec. 12. Minnesota Statutes 2014, section 299D.09, is amended to read:
36.7 	299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
36.8 	(a) Fees charged for escort services provided by the State Patrol are annually 
36.9 	appropriated to the commissioner of public safety to administer and provide these services.
36.10 	(b) The fee charged for services provided by the State Patrol with a vehicle is $79.28 
36.11 	an hour. The fee charged for services provided without a vehicle is $59.28 an hour
36.12 	shall be set to recover actual costs as determined by the commissioner of public safety 
36.13 	by July 1 each year.
36.14 	(c) The fees charged for State Patrol flight services are $140 an hour for a fixed wing 
36.15 	aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air in fiscal year 
36.16 	2012; and $139.64 an hour for a fixed wing aircraft, $560.83 an hour for a helicopter, and 
36.17 	$454.84 an hour for the Queen Air in fiscal year 2013 and thereafter.

36.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

36.19 	Sec. 13. Minnesota Statutes 2014, section 360.024, is amended to read:
36.20 	360.024 AIR TRANSPORTATION SERVICE CHARGE.
36.21 	The commissioner shall charge users of air transportation services provided by the 
36.22 	commissioner for direct operating costs, excluding pilot salary and aircraft acquisition
36.23 	costs. All receipts for these services shall be deposited in the air transportation services 
36.24 	account in the state airports fund and are appropriated to the commissioner to pay these 
36.25 	direct air service operating costs.

36.26 	Sec. 14. Minnesota Statutes 2014, section 360.305, subdivision 4, is amended to read:
36.27 		Subd. 4.Costs allocated; local contribution; hangar construction account. (a) 
36.28 	Except as otherwise provided in this subdivision Annually by June 1, the commissioner 
36.29 	of transportation shall require as a condition of assistance by the state that the establish 
36.30 	local contribution rates which will apply to a political subdivision, municipality, or public 
36.31 	corporation make a substantial contribution to the cost of the construction, improvement, 
36.32 	maintenance, or operation of the airport, in connection with which the assistance of the 
37.1 	state is sought. These costs are referred to as project costs when applying for state or 
37.2 	federal funding assistance to construct, improve, maintain, or operate an airport, or to 
37.3 	acquire land for airport facilities or clear zones. If the commissioner does not establish 
37.4 	local contribution rates by June 1, the previous rates apply.
37.5 	(b) For any airport, whether key, intermediate, or landing strip, where only state and 
37.6 	local funds are to be used, the contribution shall be not less than one-fifth of the sum of:
37.7 	(1) the project costs;
37.8 	(2) acquisition costs of the land and clear zones, which are referred to as acquisition 
37.9 	costs. The commissioner may pay all costs beyond the local contribution. Local 
37.10 	contribution rates shall not be less than five percent of the total cost of the activity or 
37.11 	acquisition, except that the commissioner may require less than five percent for research 
37.12 	projects, radio or navigational aids, activities, or acquisitions for which federal funds are 
37.13 	available to cover more than 90 percent of the total cost, or as otherwise necessary to 
37.14 	respond to an emergency.
37.15 	(c) For any airport where federal, state, and local funds are to be used, the 
37.16 	contribution shall not be less than five percent of the sum of the project costs and 
37.17 	acquisition costs. The commissioner's establishment of local contribution rates is not 
37.18 	subject to the rulemaking requirements of chapter 14.
37.19 	(d) The commissioner may pay the total cost of radio and navigational aids.
37.20 	(e) Notwithstanding paragraph (b) or (c), the commissioner may pay all of the 
37.21 	project costs of a new landing strip, but not an intermediate airport or key airport, or may 
37.22 	pay an amount equal to the federal funds granted and used for a new landing strip plus 
37.23 	all of the remaining project costs; but the total amount paid by the commissioner for the 
37.24 	project costs of a new landing strip, unless specifically authorized by an act appropriating 
37.25 	funds for the new landing strip, shall not exceed $200,000.
37.26 	(f) Notwithstanding paragraph (b) or (c), the commissioner may pay all the project 
37.27 	costs for research and development projects, including, but not limited to noise abatement; 
37.28 	provided that in no event shall the sums expended under this paragraph exceed five 
37.29 	percent of the amount appropriated for construction grants.
37.30 	(g) (d) To receive aid under this section for project costs or for acquisition costs, the 
37.31 	municipality must enter into an agreement with the commissioner giving assurance that 
37.32 	the airport will be operated and maintained in a safe, serviceable manner for aeronautical 
37.33 	purposes only for the use and benefit of the public:
37.34 	(1) for 20 years after the date thatthe municipality receives any state funds for 
37.35 	project construction or improvement costs are received by the municipality; and
38.1 	(2) for 99 years after the date thatthe municipality receives any state funds for land 
38.2 	acquisition costs are received by the municipality. If any land acquired with state funds 
38.3 	ceases to be used for aviation purposes, the municipality shall repay the state airports fund 
38.4 	the same percentage of the appraised value of the property as that percentage of the costs 
38.5 	of acquisition and participation provided by the state to acquire the land.
38.6 	The agreement may contain other conditions as the commissioner deems reasonable.
38.7 	(h) (e) The commissioner shall establish a hangar construction revolving account, 
38.8 	which shall be used for the purpose of financing the construction of hangar buildings to 
38.9 	be constructed by municipalities owning airports. All municipalities owning airports are 
38.10 	authorized to enter into contracts for the construction of hangars, and contracts with 
38.11 	the commissioner for the financing of hangar construction for an amount and period of 
38.12 	time as may be determined by the commissioner and municipality. All receipts from the 
38.13 	financing contracts shall be deposited in the hangar construction revolving account and 
38.14 	are reappropriated for the purpose of financing construction of hangar buildings. The 
38.15 	commissioner may pay from the hangar construction revolving account 80 percent of the 
38.16 	cost of financing construction of hangar buildings. For purposes of this paragraph, the 
38.17 	construction of hangars shall include their design. The commissioner shall transfer up to 
38.18 	$4,400,000 from the state airports fund to the hangar construction revolving account.
38.19 	(i) (f) The commissioner may pay a portion of the purchase price of any contribute 
38.20 	to costs incurred by any municipality for airport maintenance and operations, safety 
38.21 	equipment, and of the actual airport snow removal costs incurred by any municipality. 
38.22 	The portion to be paid by the state shall not exceed two-thirds of the cost of the purchase 
38.23 	price or snow removal. To receive aid a municipality must enter into an agreement of the 
38.24 	type referred to in paragraph (g).
38.25 	(j) (g) This subdivision applies only to project costs or acquisition costs of 
38.26 	municipally owned airports incurred after June 1, 1971.

38.27 	Sec. 15. Laws 2012, First Special Session chapter 1, article 1, section 4, subdivision 3, 
38.28 	is amended to read:

38.29	Subd. 3.Program Planning and Delivery
 				11,000,000
	
38.30 	From the trunk highway fund for the purposes 
38.31 	stated in Minnesota Statutes, section 12A.16, 
38.32 	subdivision 2. This is in addition to 
38.33 	the appropriation made in Laws 2011, 
38.34 	First Special Session chapter 3, article 1, 
39.1 	section 3, subdivision 3, paragraph (b). This 
39.2 	appropriation is available until June 30, 2018.

39.3 	Sec. 16. COST PARTICIPATION POLICY.
 39.4 	The commissioner of transportation, in consultation with representatives of local 
39.5 	units of government, shall create and adopt a policy concerning cost participation 
39.6 	for cooperative construction projects and maintenance responsibilities between the 
39.7 	Department of Transportation and local units of government. The policy must minimize 
39.8 	the share of cooperative project costs to be funded by the local units of government while 
39.9 	complying in all respects with the state constitutional requirements concerning allowable 
39.10 	uses of the trunk highway fund. The policy should provide and include sufficient flexibility 
39.11 	for unique projects and locations if doing so results in a lower total project cost. The policy 
39.12 	must be completed and adopted by the commissioner no later than September 1, 2015.

39.13 	Sec. 17.  REPEALER.
 39.14 	Minnesota Statutes 2014, section 299E.02, is repealed.