1.1                          A bill for an act 
  1.2             relating to metropolitan government; providing for a 
  1.3             transfer of transit powers; appropriating money; 
  1.4             amending Minnesota Statutes 1996, sections 117.57, 
  1.5             subdivision 3; 160.265, subdivision 1; 161.17, 
  1.6             subdivision 2; 161.171, subdivision 5; 161.173; 
  1.7             161.174; 169.781, subdivision 1; 169.791, subdivision 
  1.8             5; 169.792, subdivision 11; 174.03, subdivisions 4 and 
  1.9             5; 174.031, subdivision 3; 174.04, subdivisions 1 and 
  1.10            2; 174.32, subdivision 2; 174.50, subdivision 4; 
  1.11            216C.15, subdivision 1; 221.022; 221.025; 221.031, 
  1.12            subdivision 3a; 221.041, subdivision 4; 221.071, 
  1.13            subdivision 1; 352.01, subdivision 2b; 352.03, 
  1.14            subdivision 1; 353.64, subdivision 7a; 473.167, 
  1.15            subdivisions 2 and 2a; 473.168, subdivision 2; 
  1.16            473.223; 473.375, subdivisions 9, 11, 12, 13, 14, and 
  1.17            15; 473.382; 473.384; 473.385, subdivisions 1 and 2; 
  1.18            473.386, subdivisions 1, 2, 2a, 3, 4, 5, and 6; 
  1.19            473.387, subdivisions 2, 3, and 4; 473.391; 473.3915, 
  1.20            subdivisions 3 and 4; 473.392; 473.399; 473.3994, 
  1.21            subdivisions 5, 8, 9, 10, and 12; 473.3997; 473.405, 
  1.22            subdivisions 1, 3, 4, 5, 9, 10, 12, and 15; 473.4051; 
  1.23            473.407, subdivisions 1, 3, 4, and 5; 473.408, 
  1.24            subdivisions 1, 2, 2a, 2b, 4, 6, and 7; 473.409; 
  1.25            473.411, subdivision 5; 473.415, subdivision 1; 
  1.26            473.416; 473.42; 473.448; and 473.449; proposing 
  1.27            coding for new law in Minnesota Statutes, chapter 473; 
  1.28            repealing Minnesota Statutes 1996, sections 174.22, 
  1.29            subdivision 3; 221.295; 473.166; 473.167, subdivisions 
  1.30            3, 3a, and 4; 473.388, subdivisions 1, 2, 3, 4, and 5; 
  1.31            473.39, subdivisions 1, 1a, 1b, 2, and 4; 473.3915, 
  1.32            subdivisions 5 and 6; 473.3994, subdivisions 4, 7, and 
  1.33            13; 473.411, subdivisions 3 and 4; 473.436, 
  1.34            subdivisions 2, 3, and 6; and 473.446. 
  1.35  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.36     Section 1.  Minnesota Statutes 1996, section 117.57, 
  1.37  subdivision 3, is amended to read: 
  1.38     Subd. 3.  [RELATION TO REGIONAL RAILROAD AUTHORITIES.] An 
  1.39  authority shall not be adjudged to have a superior public use to 
  1.40  that of a regional railroad authority as defined in section 
  2.1   398A.01, a railroad property which has been identified and 
  2.2   approved before the effective date of this act as a light rail 
  2.3   corridor by the metropolitan council under chapter 473, or a 
  2.4   state trail covered by section 85.015. 
  2.5      Sec. 2.  Minnesota Statutes 1996, section 160.265, 
  2.6   subdivision 1, is amended to read: 
  2.7      Subdivision 1.  [STATE BIKEWAYS.] The commissioner of 
  2.8   transportation shall establish a program for the development of 
  2.9   bikeways primarily on existing road rights-of-way.  The program 
  2.10  shall include a system of bikeways to be established, developed, 
  2.11  maintained, and operated by the commissioner of transportation 
  2.12  and a system of state grants for the development of local 
  2.13  bikeways primarily on existing road rights-of-way.  The program 
  2.14  shall be coordinated with the local park trail grant program 
  2.15  pursuant to section 85.019, with the bicycle trail program 
  2.16  established by the commissioner of natural resources pursuant to 
  2.17  section 85.016, with the development of the statewide 
  2.18  transportation plan pursuant to section 174.03, and with 
  2.19  existing and proposed local bikeways.  In the metropolitan area 
  2.20  as defined in section 473.121, the program shall be developed in 
  2.21  accordance with plans and priorities established by the 
  2.22  metropolitan council.  The program shall be developed after 
  2.23  consultation with the state trail council, local units of 
  2.24  government, and bicyclist organizations.  The program shall be 
  2.25  administered in accordance with the provisions of sections 
  2.26  160.262 to 160.264 and standards promulgated pursuant thereto.  
  2.27  The commissioner shall compile and maintain a current registry 
  2.28  of bikeways in the state and shall publish and distribute the 
  2.29  information contained in the registry in a form and manner 
  2.30  suitable to assist persons wishing to use the bikeways.  
  2.31  The metropolitan council, the commissioner of natural resources, 
  2.32  the commissioner of trade and economic development, the 
  2.33  Minnesota historical society, and local units of government 
  2.34  shall cooperate with and assist the commissioner of 
  2.35  transportation in preparing the registry.  The commissioner 
  2.36  shall have all powers necessary and convenient to establish the 
  3.1   program pursuant to this section including but not limited to 
  3.2   the authority to adopt rules pursuant to chapter 14. 
  3.3      Sec. 3.  Minnesota Statutes 1996, section 161.17, 
  3.4   subdivision 2, is amended to read: 
  3.5      Subd. 2.  [INTERSTATE SYSTEM.] It is hereby declared that 
  3.6   construction of the interstate system of highways will vitally 
  3.7   affect the future development of the cities through which these 
  3.8   routes pass and such municipalities should have an important 
  3.9   role in the development of this highway system; that on the 
  3.10  other hand the future planning and programming of construction 
  3.11  projects over a period of years is necessary to take maximum 
  3.12  advantage of federal aid and to build a unified and coordinated 
  3.13  interstate system; that excessive delay in local approval of 
  3.14  plans for construction of one segment may seriously impede 
  3.15  completion of the entire system and adversely affect other 
  3.16  municipalities along the interstate routes; that the mutual 
  3.17  exchange of information and close cooperation between the 
  3.18  department and local governing bodies should be encouraged by 
  3.19  improved administrative processes for securing orderly review of 
  3.20  plans and the resolution of differences over interstate routes 
  3.21  and projects; and that the provisions of sections 161.171 to 
  3.22  161.177 for local approval of trunk highway plans must be 
  3.23  modified for the interstate highway system in the light of these 
  3.24  various considerations.  Before proceeding with the preparation 
  3.25  of the final plans for the construction, reconstruction, or 
  3.26  improvement of any route on the interstate system lying within 
  3.27  any city, the commissioner shall submit to its governing body 
  3.28  preliminary plans covering the route location.  The preliminary 
  3.29  plans shall be submitted as part of a report containing such 
  3.30  supporting data that the commissioner deems helpful to the 
  3.31  governing body in appraising the plans submitted. 
  3.32     Any public hearing on location of an interstate route held 
  3.33  in compliance with federal requirements shall be held at least 
  3.34  one month after submission to the governing body of the report 
  3.35  provided for in this subdivision.  After the public hearing and 
  3.36  on preparing final plans, the commissioner shall submit the 
  4.1   final plans to the governing body for approval.  If the 
  4.2   governing body does not approve the final plans within three 
  4.3   months after submitted, the commissioner may refer the plans to 
  4.4   (1) the Twin Cities Metropolitan Area Planning Commission, if 
  4.5   the project is within the area of its jurisdiction, or (2) the 
  4.6   municipal advisory committee on state-aid rules established 
  4.7   under section 162.09, subdivision 2, if the project is elsewhere 
  4.8   in the state.  If a member of the advisory committee is from the 
  4.9   municipality concerned that member shall be excused.  If the 
  4.10  plans are so referred, the commission or committee shall give 
  4.11  the commissioner and the governing body ample opportunity to 
  4.12  present the case for or against approval of the plans so 
  4.13  referred.  Not later than three months after such hearings and 
  4.14  independent study as it deems desirable, it shall approve or 
  4.15  disapprove such plans, making such additional recommendations 
  4.16  consistent with state and federal requirements as it deems 
  4.17  appropriate, and it shall submit a written report containing its 
  4.18  findings and recommendations to the commissioner and the 
  4.19  governing body.  The commissioner shall not proceed with the 
  4.20  proposed construction, reconstruction, or improvement except in 
  4.21  accordance with plans approved by the governing body or, if 
  4.22  referred to the commission or committee, until after the 
  4.23  commission or committee has made its report, and then only after 
  4.24  the governing body has had an additional 90 days within which to 
  4.25  consider the plans originally submitted or such modified plans 
  4.26  as may be submitted to it by the commissioner following the 
  4.27  report of the commission or committee.  If within such 90-day 
  4.28  period, the governing body does not approve the plans submitted 
  4.29  to it, and if the commissioner then wishes to proceed with the 
  4.30  project according to plans differing substantially from the 
  4.31  plans recommended by the commission or committee in its report, 
  4.32  the commissioner shall, before proceeding with the project, file 
  4.33  a written report with the commission or committee and the 
  4.34  governing body stating fully the reasons for doing so.  Whenever 
  4.35  plans are referred to the Twin Cities Metropolitan Area Planning 
  4.36  Commission, the commission shall be reimbursed from the trunk 
  5.1   highway fund for actual and necessary expenses incurred by the 
  5.2   commission in staff work incident to consideration of plans and 
  5.3   action thereon by the commission.  Whenever plans are referred 
  5.4   to the advisory committee on rules, members of the committee 
  5.5   shall be paid their necessary expenses to the same extent and in 
  5.6   the same manner as for its duties in considering the 
  5.7   commissioner's rules.  
  5.8      Sec. 4.  Minnesota Statutes 1996, section 161.171, 
  5.9   subdivision 5, is amended to read: 
  5.10     Subd. 5.  [METROPOLITAN AREA.] "Metropolitan area" includes 
  5.11  the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, 
  5.12  and Washington, presently under the jurisdiction, for 
  5.13  metropolitan area planning and coordination purposes, of the 
  5.14  metropolitan council established pursuant to chapter 473, which 
  5.15  council is hereinafter referred to as "agency"." 
  5.16     Sec. 5.  Minnesota Statutes 1996, section 161.173, is 
  5.17  amended to read: 
  5.18     161.173 [SUBMISSION OF CORRIDOR PROPOSAL.] 
  5.19     The commissioner shall submit to the governing body of each 
  5.20  municipality wherein a trunk highway is proposed to be 
  5.21  constructed or improved, and to the governing body of each 
  5.22  municipality adjacent to any such municipality, a report 
  5.23  containing:  a statement of the need for this proposed 
  5.24  construction or improvement, a description of alternate routes 
  5.25  which were considered by the commissioner and an explanation of 
  5.26  the advantages and disadvantages in the selection of any route 
  5.27  considered.  The report shall also contain for each alternate, 
  5.28  the following information:  general alignment and profile, 
  5.29  approximate points of access, highway classification, an 
  5.30  approximate cost estimate, relation to existing and planned 
  5.31  regional and local development and to other transportation 
  5.32  routes and facilities, and a statement of the expected general 
  5.33  effect on present and future use of the property within the 
  5.34  corridor.  Where a state trunk highway is proposed to be 
  5.35  constructed or improved within the metropolitan area, a copy of 
  5.36  the report shall also be submitted to the metropolitan council.  
  6.1   In all areas of the state a copy of the report shall be sent to 
  6.2   established regional, county and municipal planning commissions 
  6.3   in the area affected by the highway project.  Not less than 45 
  6.4   nor more than 90 days, or as otherwise mutually agreed, after 
  6.5   the report has been submitted, the commissioner shall hold a 
  6.6   public hearing on the proposed highway construction or 
  6.7   improvement at such time and place within any municipality 
  6.8   wherein a portion of the proposed construction or improvement is 
  6.9   located, as the commissioner shall determine.  Not less than 30 
  6.10  days before the hearing the commissioner shall mail notice 
  6.11  thereof to the governing body of each municipality or agency 
  6.12  entitled to receive a copy of the report, and shall cause notice 
  6.13  of the hearing to be published at least once each week for two 
  6.14  successive weeks in a newspaper or newspapers having general 
  6.15  circulation in such municipalities, the second publication to be 
  6.16  not less than five days before the date of the hearing.  The 
  6.17  notice shall state the date, time, place and purpose of the 
  6.18  hearing, shall describe the proposed or actual general location 
  6.19  of the highway to be constructed or improved, and shall state 
  6.20  where the report may be inspected prior to the hearing by any 
  6.21  interested person.  The hearing shall be conducted by the 
  6.22  commissioner or the commissioner's designee, and shall be 
  6.23  transcribed and a record thereof mailed to each municipality or 
  6.24  agency entitled to receive a copy of the report.  All interested 
  6.25  persons shall be permitted to present their views on the 
  6.26  proposed highway construction or improvement.  The hearing may 
  6.27  be continued as often as necessary.  Within 120 days after the 
  6.28  hearing is completed, the governing body of each municipality or 
  6.29  agency entitled to receive a copy of the report shall submit to 
  6.30  the commissioner its approval or disapproval of the report.  If 
  6.31  all or any part of the report is disapproved, the municipality 
  6.32  or agency shall state the reasons for such disapproval and 
  6.33  suggested changes in the report.  The commissioner shall, before 
  6.34  preparing additional plans for the proposed highway construction 
  6.35  or improvement, submit to the governing body of each 
  6.36  municipality or agency disapproving the report, a statement 
  7.1   accepting or rejecting any suggested changes and the reasons for 
  7.2   acceptance or rejection. 
  7.3      Sec. 6.  Minnesota Statutes 1996, section 161.174, is 
  7.4   amended to read: 
  7.5      161.174 [SUBMISSION OF LAYOUT PLANS.] 
  7.6      The commissioner shall submit to the governing body of each 
  7.7   municipality wherein a highway is proposed to be constructed or 
  7.8   improved, a proposed layout plan for the highway construction or 
  7.9   improvement containing:  the proposed location, elevation, width 
  7.10  and geometrics of the construction or improvement, together with 
  7.11  a statement of the reasons therefor.  Said plan shall also 
  7.12  contain:  approximate right-of-way limits; a tentative schedule 
  7.13  for right-of-way acquisition, if known; proposed access points; 
  7.14  frontage roads; separation structures and interchanges; location 
  7.15  of utilities, when known; landscaping, illumination, a tentative 
  7.16  construction schedule, if known; and the estimated cost of the 
  7.17  construction or improvement.  The commissioner shall submit more 
  7.18  than one layout plan.  Each such plan shall also be submitted to 
  7.19  the metropolitan council if any portion of the proposed highway 
  7.20  construction or improvement is located in the metropolitan 
  7.21  area.  In all areas of the state a copy of the layout plan shall 
  7.22  be sent to established regional, county and municipal planning 
  7.23  commissions in the area affected by the highway project.  Not 
  7.24  less than 90 nor more than 120 days after said plan has been 
  7.25  submitted, the commissioner shall hold a public hearing on the 
  7.26  proposed highway construction or improvement at such time and 
  7.27  place within any municipality wherein a portion of the 
  7.28  construction or improvement is located, as the commissioner 
  7.29  shall determine.  The hearing shall be noticed, held and 
  7.30  conducted in the manner provided in section 161.173, except that 
  7.31  the commissioner shall mail notice of the hearing only to those 
  7.32  municipalities and agencies entitled to receive a copy of the 
  7.33  layout plan.  The hearing shall be transcribed and a record 
  7.34  thereof made available to each municipality or agency entitled 
  7.35  to receive a copy of said plan.  Within 180 days after the 
  7.36  hearing is completed, the commissioner shall formally adopt a 
  8.1   layout plan.  A copy of the layout plan as adopted shall be 
  8.2   submitted to each municipality or agency entitled to receive a 
  8.3   copy of the proposed plan, together with the reasons for any 
  8.4   change in the plan as presented at the hearing.  Within 120 days 
  8.5   after the receipt of the adopted layout plan, each such 
  8.6   municipality or agency shall submit to the commissioner its 
  8.7   approval or disapproval of the layout plan and the reasons for 
  8.8   such disapproval, and proposed alternatives, which may include a 
  8.9   recommendation of no highway.  Such alternatives submitted by a 
  8.10  municipality located within the metropolitan area shall, upon 
  8.11  request of the municipality, be reviewed by the metropolitan 
  8.12  council in order to determine whether such alternatives are 
  8.13  likely to meet minimum federal requirements.  The metropolitan 
  8.14  council is authorized to provide whatever assistance it deems 
  8.15  advisable to the submitting municipality in order to assist it 
  8.16  in arriving at an alternative which meets minimum federal 
  8.17  requirements.  If said plan or any part thereof is not 
  8.18  disapproved within such period, the commissioner may proceed to 
  8.19  prepare final construction plans and specifications for the 
  8.20  highway construction or improvement consistent with the adopted 
  8.21  layout plan, and may acquire the necessary right-of-way.  If the 
  8.22  layout plan or any part thereof is disapproved by any 
  8.23  municipality or agency, and the commissioner determines to 
  8.24  proceed with the plan without modifications, the commissioner 
  8.25  shall proceed in the manner provided in section 161.175.  On 
  8.26  determining to proceed with the plan with modifications, the 
  8.27  commissioner shall submit the modified layout plan to the 
  8.28  municipalities and agencies entitled to receive the original 
  8.29  layout plan in the manner described above, for approval or 
  8.30  disapproval by each such municipality or agency within 60 days 
  8.31  after receipt of the modified layout plan.  If the modified 
  8.32  layout plan or any part thereof is not disapproved by any 
  8.33  municipality or agency within 60 days after its receipt, the 
  8.34  commissioner may proceed to prepare final construction plans and 
  8.35  specifications consistent with the modified layout plan, and may 
  8.36  acquire the necessary right-of-way.  If the modified plan is 
  9.1   disapproved by any municipality and the commissioner determines 
  9.2   to proceed with the plan without additional modification, the 
  9.3   commissioner shall proceed in the manner provided in section 
  9.4   161.175.  If the layout plan is disapproved, either as 
  9.5   originally submitted or as modified and the commissioner does 
  9.6   not act pursuant to section 161.175, within one year from the 
  9.7   date of the completion of the hearing, any objecting 
  9.8   municipality entitled to receive a copy of the layout plan by 
  9.9   virtue of this section may invoke the appellate procedure 
  9.10  pursuant to section 161.175, in the same manner as the same 
  9.11  might be invoked by the commissioner.  In the event the 
  9.12  appellate procedure is invoked by either the commissioner or the 
  9.13  municipality, the commissioner shall hold a public hearing prior 
  9.14  to the appointment of an appeal board.  Such hearing shall be 
  9.15  limited to the proposed alternative layout plans. 
  9.16     Sec. 7.  Minnesota Statutes 1996, section 169.781, 
  9.17  subdivision 1, is amended to read: 
  9.18     Subdivision 1.  [DEFINITIONS.] For purposes of sections 
  9.19  169.781 to 169.783: 
  9.20     (a) "Commercial motor vehicle" means: 
  9.21     (1) a commercial motor vehicle as defined in section 
  9.22  169.01, subdivision 75, paragraph (a); and 
  9.23     (2) each vehicle in a combination of more than 26,000 
  9.24  pounds. 
  9.25     "Commercial motor vehicle" does not include (1) a school 
  9.26  bus or Head Start bus displaying a certificate under section 
  9.27  169.451, (2) a bus operated by the metropolitan council 
  9.28  department of transportation or by a local transit commission 
  9.29  created in chapter 458A, or (3) a motor vehicle with a gross 
  9.30  weight of not more than 26,000 pounds, carrying in bulk tanks a 
  9.31  total of not more than 200 gallons of petroleum products or 
  9.32  liquid fertilizer or pesticide. 
  9.33     (b) "Commissioner" means the commissioner of public safety. 
  9.34     (c) "Owner" means a person who owns, or has control, under 
  9.35  a lease of more than 30 days' duration, of one or more 
  9.36  commercial motor vehicles. 
 10.1      (d) "Storage semitrailer" means a semitrailer that (1) is 
 10.2   used exclusively to store property at a location not on a street 
 10.3   or highway, (2) does not contain any load when moved on a street 
 10.4   or highway, (3) is operated only during daylight hours, and (4) 
 10.5   is marked on each side of the semitrailer "storage only" in 
 10.6   letters at least six inches high. 
 10.7      (e) "Building mover vehicle" means a vehicle owned or 
 10.8   leased by a building mover as defined in section 221.81, 
 10.9   subdivision 1, paragraph (a), and used exclusively for moving 
 10.10  buildings. 
 10.11     Sec. 8.  Minnesota Statutes 1996, section 169.791, 
 10.12  subdivision 5, is amended to read: 
 10.13     Subd. 5.  [EXEMPTIONS.] Buses or other commercial vehicles 
 10.14  operated by the metropolitan council department of 
 10.15  transportation, commercial vehicles required to file proof of 
 10.16  insurance pursuant to chapter 221, and school buses as defined 
 10.17  in section 171.01, subdivision 21, are exempt from this section. 
 10.18     Sec. 9.  Minnesota Statutes 1996, section 169.792, 
 10.19  subdivision 11, is amended to read: 
 10.20     Subd. 11.  [EXEMPTIONS.] Buses or other commercial vehicles 
 10.21  operated by the metropolitan council department of 
 10.22  transportation, commercial vehicles required to file proof of 
 10.23  insurance pursuant to chapter 221, and school buses as defined 
 10.24  in section 171.01, subdivision 21, are exempt from this section. 
 10.25     Sec. 10.  Minnesota Statutes 1996, section 174.03, 
 10.26  subdivision 4, is amended to read: 
 10.27     Subd. 4.  [OTHER DUTIES.] The commissioner shall: 
 10.28     (a) Construct and maintain transportation facilities as 
 10.29  authorized by law; 
 10.30     (b) Cooperate with, and may provide technical and financial 
 10.31  assistance to, the metropolitan council and regional development 
 10.32  commissions in the regional transportation planning process, in 
 10.33  accordance with mutually acceptable terms and conditions; 
 10.34     (c) Cooperate with and may provide planning and technical 
 10.35  assistance upon the request of any political subdivision or 
 10.36  other governmental agency in accordance with mutually accepted 
 11.1   terms and conditions, except as otherwise restricted by law; and 
 11.2      (d) Develop, revise and monitor a statewide rail 
 11.3   transportation plan as part of the statewide transportation 
 11.4   planning process, including a study and evaluation of 
 11.5   alternative methods for insuring adequate and economical 
 11.6   transportation of agricultural commodities, supplies and other 
 11.7   goods to and from rural areas of the state.  The plan shall 
 11.8   include an analysis of rail lines in the state for the purpose 
 11.9   of determining:  (1) eligibility of rail lines for assistance 
 11.10  under federal and state rail assistance programs; (2) 
 11.11  eligibility of rail lines for inclusion in the state rail bank; 
 11.12  and (3) the actions required by the state to insure the 
 11.13  continuation of rail service that meets essential state needs 
 11.14  and objectives. 
 11.15     Sec. 11.  Minnesota Statutes 1996, section 174.03, 
 11.16  subdivision 5, is amended to read: 
 11.17     Subd. 5.  [REGIONAL TRANSPORTATION PLANNING.] The 
 11.18  metropolitan council, pursuant to section 473.146, and the 
 11.19  regional development commissions shall develop regional 
 11.20  long-range transportation policy plans in cooperation with the 
 11.21  commissioner and local units of government.  Upon promulgation 
 11.22  of the statewide transportation plan, and periodically as 
 11.23  necessary thereafter, each regional policy plan shall be 
 11.24  reviewed and amended, if necessary, by the appropriate regional 
 11.25  agency to insure that the regional policy plan is not in 
 11.26  conflict with the statewide transportation plan. 
 11.27     Sec. 12.  Minnesota Statutes 1996, section 174.031, 
 11.28  subdivision 3, is amended to read: 
 11.29     Subd. 3.  [STUDIES COMMISSIONED.] (a) On and after August 
 11.30  1, 1985, the commissioner shall enter into agreements with 
 11.31  regional development commissions by which the commissions will 
 11.32  conduct studies of highway jurisdiction in each region.  The 
 11.33  studies must include: 
 11.34     (1) the jurisdiction of each road in the region; 
 11.35     (2) criteria for changes in jurisdiction, based on the 
 11.36  commissioner's guidelines; 
 12.1      (3) jurisdictional changes actually made since January 1, 
 12.2   1985; 
 12.3      (4) recommended changes in jurisdiction based on the 
 12.4   criteria; 
 12.5      (5) changes in financial obligations resulting from the 
 12.6   recommended jurisdictional change, based on the commissioner's 
 12.7   guidelines; 
 12.8      (6) estimated effects of the recommended jurisdictional 
 12.9   changes on highway staffing needs of each level of government in 
 12.10  the region; and 
 12.11     (7) estimated effects of the recommended jurisdictional 
 12.12  changes on law enforcement on the affected roads. 
 12.13     (b) In development regions where no regional development 
 12.14  commission is functioning, or where a regional development 
 12.15  commission declines to enter into an agreement to perform a 
 12.16  jurisdiction study, the jurisdiction study must be organized by 
 12.17  a district office of the department of transportation as 
 12.18  designated by the commissioner.  A district office so designated 
 12.19  must act through the counties in the development region and 
 12.20  through other public agencies the commissioner directs.  For 
 12.21  purposes of this section the metropolitan council is a regional 
 12.22  development commission. 
 12.23     (c) The agreements must provide that each entity 
 12.24  undertaking a study under this subdivision must produce and 
 12.25  present to the commissioner, not later than July 31, 1987, a 
 12.26  jurisdiction proposal for the region.  Each jurisdiction 
 12.27  proposal must identify each instance where a proposed 
 12.28  jurisdictional change is based on a factor that deviates from 
 12.29  the commissioner's guidelines and explain the reasons for each 
 12.30  deviation. 
 12.31     (d) The commissioner shall pay not more than two-thirds of 
 12.32  the cost of each study. 
 12.33     Sec. 13.  Minnesota Statutes 1996, section 174.04, 
 12.34  subdivision 1, is amended to read: 
 12.35     Subdivision 1.  [REVIEW OF APPLICATION.] Any state agency 
 12.36  which receives an application from a regional development 
 13.1   commission, metropolitan council, public transit commission, 
 13.2   airport commission, port authority or other political 
 13.3   subdivision of the state, or any nonpublic organization, for 
 13.4   financial assistance for transportation planning, capital 
 13.5   expenditures or operations to any state or federal agency, shall 
 13.6   first submit the application to the commissioner of 
 13.7   transportation.  The commissioner shall review the application 
 13.8   to determine whether it contains matters that substantially 
 13.9   affect the statewide transportation plan and priorities.  If the 
 13.10  application does not contain such matters, the commissioner 
 13.11  shall within 15 days after receipt return the application to the 
 13.12  applicant political subdivision or nonpublic organization for 
 13.13  forwarding to the appropriate agency.  If the application 
 13.14  contains such matters, the commissioner shall review and comment 
 13.15  on the application as being consistent with the plan and 
 13.16  priorities.  The commissioner shall return the application 
 13.17  together with comments within 45 days after receipt to the 
 13.18  applicant political subdivision or nonpublic organization for 
 13.19  forwarding with the commissioner's comments to the appropriate 
 13.20  agency. 
 13.21     Sec. 14.  Minnesota Statutes 1996, section 174.04, 
 13.22  subdivision 2, is amended to read: 
 13.23     Subd. 2.  [DESIGNATED AGENT.] A regional development 
 13.24  commission, metropolitan council, public transit commission, 
 13.25  airport commission, port authority, or any other political 
 13.26  subdivision of the state, or any nonpublic organization, may 
 13.27  designate the commissioner as its agent to receive and disburse 
 13.28  funds by entering into an agreement with the commissioner 
 13.29  prescribing the terms and conditions of the receipt and 
 13.30  expenditure of the funds in accordance with federal and state 
 13.31  laws, rules, and regulations. 
 13.32     Sec. 15.  Minnesota Statutes 1996, section 174.32, 
 13.33  subdivision 2, is amended to read: 
 13.34     Subd. 2.  [TRANSIT ASSISTANCE FUND; DISTRIBUTION.] The 
 13.35  transit assistance fund receives money distributed under section 
 13.36  297B.09.  Eighty percent of the receipts of the fund must be 
 14.1   placed into a metropolitan account for distribution to 
 14.2   recipients located in the metropolitan area and 20 percent into 
 14.3   a separate account for distribution to recipients located 
 14.4   outside of the metropolitan area.  Except as otherwise provided 
 14.5   in this subdivision, the metropolitan council is responsible for 
 14.6   distributing assistance from the metropolitan account, and the 
 14.7   commissioner is responsible for distributing assistance from the 
 14.8   other account. 
 14.9      Sec. 16.  Minnesota Statutes 1996, section 174.50, 
 14.10  subdivision 4, is amended to read: 
 14.11     Subd. 4.  [CERTIFICATION AND DISBURSAL FOR STATE PROJECTS.] 
 14.12  Before disbursement of an appropriation made from the fund to 
 14.13  the commissioner of transportation or any other officer or 
 14.14  agency of the state the commissioner shall certify to the 
 14.15  commissioner of finance that the project for which the funds are 
 14.16  appropriated has been reviewed by the proper regional 
 14.17  development commission or the metropolitan council as the case 
 14.18  may be, for consistency with the long-term comprehensive 
 14.19  development plans and guides for which that agency is 
 14.20  responsible. 
 14.21     Sec. 17.  Minnesota Statutes 1996, section 216C.15, 
 14.22  subdivision 1, is amended to read: 
 14.23     Subdivision 1.  [PRIORITIES AND REQUIREMENTS.] The 
 14.24  commissioner shall maintain an emergency conservation and 
 14.25  allocation plan.  The plan shall provide a variety of strategies 
 14.26  and staged conservation measures to reduce energy use and in the 
 14.27  event of an energy supply emergency, shall establish guidelines 
 14.28  and criteria for allocation of fuels to priority users.  The 
 14.29  plan shall contain alternative conservation actions and 
 14.30  allocation plans to reasonably meet various foreseeable shortage 
 14.31  circumstances and allow a choice of appropriate responses.  The 
 14.32  plan shall be consistent with requirements of federal emergency 
 14.33  energy conservation and allocation laws and regulations, shall 
 14.34  be based on reasonable energy savings or transfers from scarce 
 14.35  energy resources and shall: 
 14.36     (a) give priority to individuals, institutions, 
 15.1   agriculture, businesses, and public transit under contract with 
 15.2   the commissioner of transportation or the metropolitan council 
 15.3   which demonstrate they have engaged in energy-saving measures 
 15.4   and shall include provisions to insure that: 
 15.5      (1) immediate allocations to individuals, institutions, 
 15.6   agriculture, businesses, and public transit be based on needs at 
 15.7   energy conservation levels; 
 15.8      (2) successive allocations to individuals, institutions, 
 15.9   agriculture, businesses, and public transit be based on needs 
 15.10  after implementation of required action to increase energy 
 15.11  conservation; and 
 15.12     (3) needs of individuals, institutions, and public transit 
 15.13  are adjusted to insure the health and welfare of the young, old 
 15.14  and infirm; 
 15.15     (b) insure maintenance of reasonable job safety conditions 
 15.16  and avoid environmental sacrifices; 
 15.17     (c) establish programs, controls, standards, priorities or 
 15.18  quotas for the allocation, conservation and consumption of 
 15.19  energy resources; and for the suspension and modification of 
 15.20  existing standards and the establishment of new standards 
 15.21  affecting or affected by the use of energy resources, including 
 15.22  those related to the type and composition of energy sources, and 
 15.23  to the hours and days during which public buildings, commercial 
 15.24  and industrial establishments, and other energy consuming 
 15.25  facilities may or are required to remain open; 
 15.26     (d) establish programs to control the use, sale or 
 15.27  distribution of commodities, materials, goods or services; 
 15.28     (e) establish regional programs and agreements for the 
 15.29  purpose of coordinating the energy resources, programs and 
 15.30  actions of the state with those of the federal government, of 
 15.31  local governments, and of other states and localities; 
 15.32     (f) determine at what level of an energy supply emergency 
 15.33  situation the pollution control agency shall be requested to ask 
 15.34  the governor to petition the president for a temporary emergency 
 15.35  suspension of air quality standards as required by the Clean Air 
 15.36  Act, United States Code, title 42, section 7410f; and 
 16.1      (g) establish procedures for fair and equitable review of 
 16.2   complaints and requests for special exemptions regarding 
 16.3   emergency conservation measures or allocations. 
 16.4      Sec. 18.  Minnesota Statutes 1996, section 221.022, is 
 16.5   amended to read: 
 16.6      221.022 [EXCEPTION.] 
 16.7      The powers granted to the board under sections 221.011 to 
 16.8   221.296 do not include the power to regulate any service or 
 16.9   vehicles operated by the metropolitan council department of 
 16.10  transportation or to regulate passenger transportation service 
 16.11  provided under contract to the department or the metropolitan 
 16.12  council.  A provider of passenger transportation service under 
 16.13  contract to the department or the metropolitan council may not 
 16.14  provide charter service without first having obtained a permit 
 16.15  to operate as a charter carrier. 
 16.16     Sec. 19.  Minnesota Statutes 1996, section 221.025, is 
 16.17  amended to read: 
 16.18     221.025 [EXEMPTIONS.] 
 16.19     The provisions of this chapter requiring a certificate or 
 16.20  permit to operate as a motor carrier do not apply to the 
 16.21  intrastate transportation described below:  
 16.22     (a) the transportation of students to or from school or 
 16.23  school activities in a school bus inspected and certified under 
 16.24  section 169.451 and the transportation of children or parents to 
 16.25  or from a Head Start facility or Head Start activity in a Head 
 16.26  Start bus inspected and certified under section 169.451; 
 16.27     (b) the transportation of solid waste, as defined in 
 16.28  section 116.06, subdivision 22, including recyclable materials 
 16.29  and waste tires, except that the term "hazardous waste" has the 
 16.30  meaning given it in section 221.011, subdivision 31; 
 16.31     (c) a commuter van as defined in section 221.011, 
 16.32  subdivision 27; 
 16.33     (d) authorized emergency vehicles as defined in section 
 16.34  169.01, subdivision 5, including ambulances; and tow trucks 
 16.35  equipped with proper and legal warning devices when picking up 
 16.36  and transporting (1) disabled or wrecked motor vehicles or (2) 
 17.1   vehicles towed or transported under a towing order issued by a 
 17.2   public employee authorized to issue a towing order; 
 17.3      (e) the transportation of grain samples under conditions 
 17.4   prescribed by the board; 
 17.5      (f) the delivery of agricultural lime; 
 17.6      (g) the transportation of dirt and sod within an area 
 17.7   having a 50-mile radius from the home post office of the person 
 17.8   performing the transportation; 
 17.9      (h) the transportation of sand, gravel, bituminous asphalt 
 17.10  mix, concrete ready mix, concrete blocks or tile and the mortar 
 17.11  mix to be used with the concrete blocks or tile, or crushed rock 
 17.12  to or from the point of loading or a place of gathering within 
 17.13  an area having a 50-mile radius from that person's home post 
 17.14  office or a 50-mile radius from the site of construction or 
 17.15  maintenance of public roads and streets; 
 17.16     (i) the transportation of pulpwood, cordwood, mining 
 17.17  timber, poles, posts, decorator evergreens, wood chips, sawdust, 
 17.18  shavings, and bark from the place where the products are 
 17.19  produced to the point where they are to be used or shipped; 
 17.20     (j) the transportation of fresh vegetables from farms to 
 17.21  canneries or viner stations, from viner stations to canneries, 
 17.22  or from canneries to canneries during the harvesting, canning, 
 17.23  or packing season, or transporting sugar beets, wild rice, or 
 17.24  rutabagas from the field of production to the first place of 
 17.25  delivery or unloading, including a processing plant, warehouse, 
 17.26  or railroad siding; 
 17.27     (k) the transportation of property or freight, other than 
 17.28  household goods and petroleum products in bulk, entirely within 
 17.29  the corporate limits of a city or between contiguous cities 
 17.30  except as provided in section 221.296; 
 17.31     (l) the transportation of unprocessed dairy products in 
 17.32  bulk within an area having a 100-mile radius from the home post 
 17.33  office of the person providing the transportation; 
 17.34     (m) the transportation of agricultural, horticultural, 
 17.35  dairy, livestock, or other farm products within an area having a 
 17.36  25-mile radius from the person's home post office and the 
 18.1   carrier may transport other commodities within the 25-mile 
 18.2   radius if the destination of each haul is a farm; 
 18.3      (n) passenger transportation service that is not charter 
 18.4   service and that is under contract to and with operating 
 18.5   assistance from the department or the metropolitan council; 
 18.6      (o) the transportation of newspapers, as defined in section 
 18.7   331A.01, subdivision 5, telephone books, handbills, circulars, 
 18.8   or pamphlets in a vehicle with a gross vehicle weight of 10,000 
 18.9   pounds or less; and 
 18.10     (p) transportation of potatoes from the field of 
 18.11  production, or a storage site owned or otherwise controlled by 
 18.12  the producer, to the first place of processing. 
 18.13     The exemptions provided in this section apply to a person 
 18.14  only while the person is exclusively engaged in exempt 
 18.15  transportation. 
 18.16     Sec. 20.  Minnesota Statutes 1996, section 221.031, 
 18.17  subdivision 3a, is amended to read: 
 18.18     Subd. 3a.  [CONTRACTORS OR RECIPIENTS OF TRANSPORTATION 
 18.19  ASSISTANCE.] Notwithstanding subdivision 3, providers of 
 18.20  passenger transportation service under contract to and with 
 18.21  operating assistance from the department or the metropolitan 
 18.22  council must comply with rules for driver qualifications; 
 18.23  driving of motor vehicles; parts and accessories necessary for 
 18.24  safe operation; hours of service of drivers; inspection, repair, 
 18.25  and maintenance; and the rules adopted in section 221.0314, 
 18.26  subdivision 8, for accident reporting.  
 18.27     This subdivision does not apply to (1) a local transit 
 18.28  commission, (2) a transit authority created by the legislature, 
 18.29  (3) special transportation service certified by the commissioner 
 18.30  under section 174.30, or (4) special transportation service 
 18.31  defined in section 174.29, subdivision 1, when provided by a 
 18.32  volunteer driver operating a private passenger vehicle defined 
 18.33  in section 169.01, subdivision 3a. 
 18.34     Sec. 21.  Minnesota Statutes 1996, section 221.041, 
 18.35  subdivision 4, is amended to read: 
 18.36     Subd. 4.  [NONAPPLICABILITY.] This section does not apply 
 19.1   to any regular route passenger transportation in the 
 19.2   metropolitan area being performed with operating assistance 
 19.3   provided by the metropolitan council department. 
 19.4      Sec. 22.  Minnesota Statutes 1996, section 221.071, 
 19.5   subdivision 1, is amended to read: 
 19.6      Subdivision 1.  [CONSIDERATIONS; TEMPORARY CERTIFICATES; 
 19.7   AMENDING.] If the board finds from the evidence that the 
 19.8   petitioner is fit and able to properly perform the services 
 19.9   proposed and that public convenience and necessity require the 
 19.10  granting of the petition or a part of the petition, it shall 
 19.11  issue a certificate of public convenience and necessity to the 
 19.12  petitioner.  In determining whether a certificate should be 
 19.13  issued, the board shall give primary consideration to the 
 19.14  interests of the public that might be affected, to the 
 19.15  transportation service being furnished by a railroad which may 
 19.16  be affected by the granting of the certificate, and to the 
 19.17  effect which the granting of the certificate will have upon 
 19.18  other transportation service essential to the communities which 
 19.19  might be affected by the granting of the certificate.  The board 
 19.20  may issue a certificate as applied for or issue it for a part 
 19.21  only of the authority sought and may attach to the authority 
 19.22  granted terms and conditions as in its judgment public 
 19.23  convenience and necessity may require.  If the petitioner is 
 19.24  seeking authority to operate regular route transit service 
 19.25  wholly within the seven-county metropolitan area with operating 
 19.26  assistance provided by the metropolitan council department, the 
 19.27  board shall consider only whether the petitioner is fit and able 
 19.28  to perform the proposed service.  The operating authority 
 19.29  granted to such a petitioner must be the operating authority for 
 19.30  which the petitioner is receiving operating assistance from the 
 19.31  metropolitan council department.  A carrier in the metropolitan 
 19.32  area receiving operating assistance from the metropolitan 
 19.33  council department may amend the certificate to provide for 
 19.34  additional routes by filing a copy of the amendment with the 
 19.35  board, and approval of the amendment by the board is not 
 19.36  required if the additional service is provided with operating 
 20.1   assistance from the metropolitan council department. 
 20.2      The board may grant a temporary certificate, ex parte, 
 20.3   valid for a period not exceeding 180 days, upon a showing that 
 20.4   no regular route common carrier or petroleum carrier is then 
 20.5   authorized to serve on the route sought, that no other petition 
 20.6   is on file with the board covering the route, and that a need 
 20.7   for the proposed service exists. 
 20.8      A certificate may be amended by the board on ex parte 
 20.9   petition and payment of a $25 fee to the commissioner, to grant 
 20.10  an additional or alternate route if there is no other means of 
 20.11  transportation over the proposed additional route or between its 
 20.12  termini, and the proposed additional route does not exceed ten 
 20.13  miles in length. 
 20.14     Sec. 23.  Minnesota Statutes 1996, section 352.01, 
 20.15  subdivision 2b, is amended to read: 
 20.16     Subd. 2b.  [EXCLUDED EMPLOYEES.] "State employee" does not 
 20.17  include: 
 20.18     (1) elective state officers; 
 20.19     (2) students employed by the University of Minnesota, the 
 20.20  state universities, and community colleges unless approved for 
 20.21  coverage by the board of regents, the state university board, or 
 20.22  the state board for community colleges, as the case may be; 
 20.23     (3) employees who are eligible for membership in the state 
 20.24  teachers retirement association except employees of the 
 20.25  department of children, families, and learning who have chosen 
 20.26  or may choose to be covered by the Minnesota state retirement 
 20.27  system instead of the teachers retirement association; 
 20.28     (4) employees of the University of Minnesota who are 
 20.29  excluded from coverage by action of the board of regents; 
 20.30     (5) officers and enlisted personnel in the national guard 
 20.31  and the naval militia who are assigned to permanent peacetime 
 20.32  duty and who under federal law are or are required to be members 
 20.33  of a federal retirement system; 
 20.34     (6) election officers; 
 20.35     (7) persons engaged in public work for the state but 
 20.36  employed by contractors when the performance of the contract is 
 21.1   authorized by the legislature or other competent authority; 
 21.2      (8) officers and employees of the senate and house of 
 21.3   representatives or a legislative committee or commission who are 
 21.4   temporarily employed; 
 21.5      (9) receivers, jurors, notaries public, and court employees 
 21.6   who are not in the judicial branch as defined in section 43A.02, 
 21.7   subdivision 25, except referees and adjusters employed by the 
 21.8   department of labor and industry; 
 21.9      (10) patient and inmate help in state charitable, penal, 
 21.10  and correctional institutions including the Minnesota veterans 
 21.11  home; 
 21.12     (11) persons employed for professional services where the 
 21.13  service is incidental to regular professional duties and whose 
 21.14  compensation is paid on a per diem basis; 
 21.15     (12) employees of the Sibley House Association; 
 21.16     (13) the members of any state board or commission who serve 
 21.17  the state intermittently and are paid on a per diem basis; the 
 21.18  secretary, secretary-treasurer, and treasurer of those boards if 
 21.19  their compensation is $5,000 or less per year, or, if they are 
 21.20  legally prohibited from serving more than three years; and the 
 21.21  board of managers of the state agricultural society and its 
 21.22  treasurer unless the treasurer is also its full-time secretary; 
 21.23     (14) state troopers; 
 21.24     (15) temporary employees of the Minnesota state fair 
 21.25  employed on or after July 1 for a period not to extend beyond 
 21.26  October 15 of that year; and persons employed at any time by the 
 21.27  state fair administration for special events held on the 
 21.28  fairgrounds; 
 21.29     (16) emergency employees in the classified service; except 
 21.30  that if an emergency employee, within the same pay period, 
 21.31  becomes a provisional or probationary employee on other than a 
 21.32  temporary basis, the employee shall be considered a "state 
 21.33  employee" retroactively to the beginning of the pay period; 
 21.34     (17) persons described in section 352B.01, subdivision 2, 
 21.35  clauses (2) to (5); 
 21.36     (18) temporary employees in the classified service, 
 22.1   temporary employees in the unclassified service appointed for a 
 22.2   definite period of not more than six months and employed less 
 22.3   than six months in any one-year period and seasonal help in the 
 22.4   classified service employed by the department of revenue; 
 22.5      (19) trainee employees, except those listed in subdivision 
 22.6   2a, clause (10); 
 22.7      (20) persons whose compensation is paid on a fee basis; 
 22.8      (21) state employees who in any year have credit for 12 
 22.9   months service as teachers in the public schools of the state 
 22.10  and as teachers are members of the teachers retirement 
 22.11  association or a retirement system in St. Paul, Minneapolis, or 
 22.12  Duluth; 
 22.13     (22) employees of the adjutant general employed on an 
 22.14  unlimited intermittent or temporary basis in the classified and 
 22.15  unclassified service for the support of army and air national 
 22.16  guard training facilities; 
 22.17     (23) chaplains and nuns who are excluded from coverage 
 22.18  under the federal Old Age, Survivors, Disability, and Health 
 22.19  Insurance Program for the performance of service as specified in 
 22.20  United States Code, title 42, section 410(a)(8)(A), as amended, 
 22.21  if no irrevocable election of coverage has been made under 
 22.22  section 3121(r) of the Internal Revenue Code of 1986, as amended 
 22.23  through December 31, 1992; 
 22.24     (24) examination monitors employed by departments, 
 22.25  agencies, commissions, and boards to conduct examinations 
 22.26  required by law; 
 22.27     (25) persons appointed to serve as members of fact-finding 
 22.28  commissions or adjustment panels, arbitrators, or labor referees 
 22.29  under chapter 179; 
 22.30     (26) temporary employees employed for limited periods under 
 22.31  any state or federal program for training or rehabilitation 
 22.32  including persons employed for limited periods from areas of 
 22.33  economic distress except skilled and supervisory personnel and 
 22.34  persons having civil service status covered by the system; 
 22.35     (27) full-time students employed by the Minnesota 
 22.36  historical society intermittently during part of the year and 
 23.1   full-time during the summer months; 
 23.2      (28) temporary employees, appointed for not more than six 
 23.3   months, of the metropolitan council and of any of its statutory 
 23.4   boards, if the board members are appointed by the metropolitan 
 23.5   council; 
 23.6      (29) persons employed in positions designated by the 
 23.7   department of employee relations as student workers; 
 23.8      (30) (29) members of trades employed by the successor to 
 23.9   the metropolitan waste control commission with trade union 
 23.10  pension plan coverage under a collective bargaining agreement 
 23.11  first employed after June 1, 1977; 
 23.12     (31) (30) persons employed in subsidized on-the-job 
 23.13  training, work experience, or public service employment as 
 23.14  enrollees under the federal Comprehensive Employment and 
 23.15  Training Act after March 30, 1978, unless the person has as of 
 23.16  the later of March 30, 1978, or the date of employment 
 23.17  sufficient service credit in the retirement system to meet the 
 23.18  minimum vesting requirements for a deferred annuity, or the 
 23.19  employer agrees in writing on forms prescribed by the director 
 23.20  to make the required employer contributions, including any 
 23.21  employer additional contributions, on account of that person 
 23.22  from revenue sources other than funds provided under the federal 
 23.23  Comprehensive Employment and Training Act, or the person agrees 
 23.24  in writing on forms prescribed by the director to make the 
 23.25  required employer contribution in addition to the required 
 23.26  employee contribution; 
 23.27     (32) (31) off-duty peace officers while employed by the 
 23.28  metropolitan council commissioner of transportation; 
 23.29     (33) (32) persons who are employed as full-time police 
 23.30  officers by the metropolitan council commissioner of 
 23.31  transportation and as police officers are members of the public 
 23.32  employees police and fire fund; 
 23.33     (34) (33) persons who are employed as full-time 
 23.34  firefighters by the department of military affairs and as 
 23.35  firefighters are members of the public employees police and fire 
 23.36  fund; 
 24.1      (35) (34) foreign citizens with a work permit of less than 
 24.2   three years, or an H-1b/JV visa valid for less than three years 
 24.3   of employment, unless notice of extension is supplied which 
 24.4   allows them to work for three or more years as of the date the 
 24.5   extension is granted, in which case they are eligible for 
 24.6   coverage from the date extended; and 
 24.7      (36) (35) persons who are employed by the board of trustees 
 24.8   of the Minnesota state colleges and universities and who elect 
 24.9   to remain members of the public employees retirement association 
 24.10  or the Minneapolis employees retirement fund, whichever applies, 
 24.11  under section 136C.75. 
 24.12     Sec. 24.  Minnesota Statutes 1996, section 352.03, 
 24.13  subdivision 1, is amended to read: 
 24.14     Subdivision 1.  [MEMBERSHIP OF BOARD; ELECTION; TERM.] The 
 24.15  policy-making function of the system is vested in a board of 11 
 24.16  members, who must be known as the board of directors.  This 
 24.17  board shall consist of three members appointed by the governor, 
 24.18  one of whom must be a constitutional officer or appointed state 
 24.19  official and two of whom must be public members knowledgeable in 
 24.20  pension matters, four state employees elected by state employees 
 24.21  covered by the system excluding employees in categories 
 24.22  specifically authorized to designate or elect a member by this 
 24.23  subdivision, one employee of the transit operating division of 
 24.24  the metropolitan transit commission or its successor agency 
 24.25  designated by the executive committee of the labor organization 
 24.26  that is the exclusive bargaining agent representing employees of 
 24.27  the transit division, one member of the state patrol retirement 
 24.28  fund elected by members of that fund at a time and in a manner 
 24.29  fixed by the board, one employee covered by the correctional 
 24.30  employees plan elected by employees covered by that plan, and 
 24.31  one retired employee elected by disabled and retired employees 
 24.32  of all plans administered by the system at a time and in a 
 24.33  manner to be fixed by the board.  Two state employee members, 
 24.34  whose terms of office begin on the first Monday in May after 
 24.35  their election, must be elected biennially.  Elected members and 
 24.36  the appointed member of the metropolitan council's department of 
 25.1   transportation's office of metropolitan transit operations hold 
 25.2   office for a term of four years, except the retired member whose 
 25.3   term is two years, and until their successors are elected or 
 25.4   appointed, and have qualified.  An employee of the system is not 
 25.5   eligible for membership on the board of directors.  A state 
 25.6   employee on leave of absence is not eligible for election or 
 25.7   reelection to membership on the board of directors.  The term of 
 25.8   any board member who is on leave for more than six months 
 25.9   automatically ends on expiration of this period. 
 25.10     Sec. 25.  Minnesota Statutes 1996, section 353.64, 
 25.11  subdivision 7a, is amended to read: 
 25.12     Subd. 7a.  [PENSION COVERAGE FOR CERTAIN METROPOLITAN 
 25.13  TRANSIT POLICE OFFICERS.] A person who is employed as a 
 25.14  full-time police officer on or after the first day of the first 
 25.15  payroll period after July 1, 1993, by the metropolitan council 
 25.16  commissioner of transportation and who is not eligible for 
 25.17  coverage under the agreement with the Secretary of the federal 
 25.18  Department of Health and Human Services making the provisions of 
 25.19  the federal Old Age, Survivors, and Disability Insurance Act 
 25.20  because the person's position is excluded from application under 
 25.21  United States Code, sections 418(d)(5)(A) and 418(d)(8)(D), and 
 25.22  under section 355.07, is a member of the public employees police 
 25.23  and fire fund and is considered to be a police officer within 
 25.24  the meaning of this section.  The metropolitan council employer 
 25.25  shall deduct the employee contribution from the salary of each 
 25.26  full-time police officer as required by section 353.65, 
 25.27  subdivision 2, shall make the employer contribution for each 
 25.28  full-time police officer as required by section 353.65, 
 25.29  subdivision 3, and shall meet the employer recording and 
 25.30  reporting requirements in section 353.65, subdivision 4. 
 25.31     Sec. 26.  Minnesota Statutes 1996, section 473.167, 
 25.32  subdivision 2, is amended to read: 
 25.33     Subd. 2.  [LOANS FOR ACQUISITION.] (a) The council 
 25.34  commissioner of transportation may make loans to counties, 
 25.35  towns, and statutory and home rule charter cities within the 
 25.36  metropolitan area for the purchase of property within the 
 26.1   right-of-way of a state trunk highway shown on an official map 
 26.2   adopted pursuant to section 394.361 or 462.359 or for the 
 26.3   purchase of property within the proposed right-of-way of a 
 26.4   principal or intermediate arterial highway designated by 
 26.5   the council commissioner as a part of the metropolitan highway 
 26.6   system plan and approved by the council pursuant to subdivision 
 26.7   1.  The loans shall be made by the council commissioner, from 
 26.8   the fund established pursuant to this subdivision, for purchases 
 26.9   approved by the council commissioner.  The loans shall bear no 
 26.10  interest. 
 26.11     (b) The council commissioner shall make loans only: 
 26.12     (1) to accelerate the acquisition of primarily undeveloped 
 26.13  property when there is a reasonable probability that the 
 26.14  property will increase in value before highway construction, and 
 26.15  to update an expired environmental impact statement on a project 
 26.16  for which the right-of-way is being purchased; 
 26.17     (2) to avert the imminent conversion or the granting of 
 26.18  approvals which would allow the conversion of property to uses 
 26.19  which would jeopardize its availability for highway 
 26.20  construction; 
 26.21     (3) to advance planning and environmental activities on 
 26.22  highest priority major metropolitan river crossing projects, 
 26.23  under the transportation development guide chapter/policy plan; 
 26.24  or 
 26.25     (4) to take advantage of open market opportunities when 
 26.26  developed properties become available for sale, provided all 
 26.27  parties involved are agreeable to the sale and funds are 
 26.28  available.  
 26.29     (c) The council commissioner shall not make loans for the 
 26.30  purchase of property at a price which exceeds the fair market 
 26.31  value of the property or which includes the costs of relocating 
 26.32  or moving persons or property.  The eminent domain process may 
 26.33  be used to settle differences of opinion as to fair market 
 26.34  value, provided all parties agree to the process. 
 26.35     (d) A private property owner may elect to receive the 
 26.36  purchase price either in a lump sum or in not more than four 
 27.1   annual installments without interest on the deferred 
 27.2   installments.  If the purchase agreement provides for 
 27.3   installment payments, the council commissioner shall make the 
 27.4   loan in installments corresponding to those in the purchase 
 27.5   agreement.  The recipient of an acquisition loan shall convey 
 27.6   the property for the construction of the highway at the same 
 27.7   price which the recipient paid for the property.  The price may 
 27.8   include the costs of preparing environmental documents that were 
 27.9   required for the acquisition and that were paid for with money 
 27.10  that the recipient received from the loan fund.  Upon 
 27.11  notification by the council commissioner that the plan to 
 27.12  construct the highway has been abandoned or the anticipated 
 27.13  location of the highway changed, the recipient shall sell the 
 27.14  property at market value in accordance with the procedures 
 27.15  required for the disposition of the property.  All rents and 
 27.16  other money received because of the recipient's ownership of the 
 27.17  property and all proceeds from the conveyance or sale of the 
 27.18  property shall be paid to the council commissioner.  If a 
 27.19  recipient is not permitted to include in the conveyance price 
 27.20  the cost of preparing environmental documents that were required 
 27.21  for the acquisition, then the recipient is not required to repay 
 27.22  the council an amount equal to 40 percent of the money received 
 27.23  from the loan fund and spent in preparing the environmental 
 27.24  documents.  
 27.25     (e) The proceeds of the tax authorized by subdivision 3 and 
 27.26  distributed to the right-of-way acquisition loan fund pursuant 
 27.27  to subdivision 3a, paragraph (a), all money paid to the council 
 27.28  commissioner by recipients of loans, and all interest on 
 27.29  the proceeds fund and payments shall be maintained as a separate 
 27.30  fund.  For administration of the loan program, the council 
 27.31  commissioner may expend from the fund each year an amount no 
 27.32  greater than three percent of the amount of the proceeds 
 27.33  distributed to from the right-of-way acquisition loan 
 27.34  fund pursuant to subdivision 3a, paragraph (a), for that year. 
 27.35     Sec. 27.  Minnesota Statutes 1996, section 473.167, 
 27.36  subdivision 2a, is amended to read: 
 28.1      Subd. 2a.  [HARDSHIP ACQUISITION AND RELOCATION.] (a) 
 28.2   The council commissioner may make hardship loans to acquiring 
 28.3   authorities within the metropolitan area to purchase homestead 
 28.4   property located in a proposed state trunk highway right-of-way 
 28.5   or project, and to provide relocation assistance.  Acquiring 
 28.6   authorities are authorized to accept the loans and to acquire 
 28.7   the property. Except as provided in this subdivision, the loans 
 28.8   shall be made as provided in subdivision 2.  Loans shall be in 
 28.9   the amount of the fair market value of the homestead property 
 28.10  plus relocation costs and less salvage value.  Before 
 28.11  construction of the highway begins, the acquiring authority 
 28.12  shall convey the property to the commissioner of transportation 
 28.13  at the same price it paid, plus relocation costs and less its 
 28.14  salvage value. Acquisition and assistance under this subdivision 
 28.15  must conform to sections 117.50 to 117.56.  
 28.16     (b) The council commissioner may make hardship loans only 
 28.17  when: 
 28.18     (1) the owner of affected homestead property requests 
 28.19  acquisition and relocation assistance from an acquiring 
 28.20  authority; 
 28.21     (2) federal or other state financial participation is not 
 28.22  available; 
 28.23     (3) the owner is unable to sell the homestead property at 
 28.24  its appraised market value because the property is located in a 
 28.25  proposed state trunk highway right-of-way or project as 
 28.26  indicated on an official map or plat adopted under section 
 28.27  160.085, 394.361, or 462.359; 
 28.28     (4) the council commissioner agrees to and approves the 
 28.29  fair market value of the homestead property, which approval 
 28.30  shall not be unreasonably withheld; and 
 28.31     (5) the owner of the homestead property is burdened by 
 28.32  circumstances that constitute a hardship, such as catastrophic 
 28.33  medical expenses; a transfer of the homestead owner by the 
 28.34  owner's employer to a distant site of employment; or inability 
 28.35  of the owner to maintain the property due to physical or mental 
 28.36  disability or the permanent departure of children from the 
 29.1   homestead.  
 29.2      (c) For purposes of this subdivision, the following terms 
 29.3   have the meanings given them. 
 29.4      (1) "Acquiring authority" means counties, towns, and 
 29.5   statutory and home rule charter cities in the metropolitan area. 
 29.6      (2) "Homestead property" means a single-family dwelling 
 29.7   occupied by the owner, and the surrounding land, not exceeding a 
 29.8   total of ten acres. 
 29.9      (3) "Salvage value" means the probable sale price of the 
 29.10  dwelling and other property that is severable from the land if 
 29.11  offered for sale on the condition that it be removed from the 
 29.12  land at the buyer's expense, allowing a reasonable time to find 
 29.13  a buyer with knowledge of the possible uses of the property, 
 29.14  including separate use of serviceable components and scrap when 
 29.15  there is no other reasonable prospect of sale. 
 29.16     Sec. 28.  Minnesota Statutes 1996, section 473.168, 
 29.17  subdivision 2, is amended to read: 
 29.18     Subd. 2.  The metropolitan council commissioner may require 
 29.19  that any freeway constructed in the metropolitan area on which 
 29.20  actual construction has not been commenced by April 12, 1974 the 
 29.21  effective date of this act include provisions for exclusive 
 29.22  lanes for buses and, as the council commissioner may determine, 
 29.23  other forms of multipassenger transit.  The council office, in 
 29.24  making its determination, must demonstrate that the exclusive 
 29.25  lanes are necessary to implement the transportation policy plan 
 29.26  of the development guide. 
 29.27     Sec. 29.  Minnesota Statutes 1996, section 473.223, is 
 29.28  amended to read: 
 29.29     473.223 [FEDERAL AID.] 
 29.30     For the purposes of this section the term "governmental 
 29.31  subdivision" includes municipalities, counties and other 
 29.32  political subdivisions generally.  If federal aid for 
 29.33  transportation programs and projects is otherwise unavailable to 
 29.34  an existing agency or governmental subdivision, the metropolitan 
 29.35  council commissioner of transportation may cooperate with the 
 29.36  government of the United States and any agency or department 
 30.1   thereof and the affected agency or other governmental 
 30.2   subdivision in establishing metropolitan area eligibility to 
 30.3   receive federal aid, and may comply with the provisions of the 
 30.4   laws of the United States and any rules and regulations made 
 30.5   thereunder for the expenditure of federal moneys upon such 
 30.6   projects as are proposed for federal assistance. 
 30.7   The metropolitan council commissioner may accept federal aid and 
 30.8   other aid, either public or private, for and in behalf of the 
 30.9   metropolitan area or any governmental subdivision of the state, 
 30.10  for transportation programs and projects within the metropolitan 
 30.11  area upon such terms and conditions as are or may be prescribed 
 30.12  by the laws of the United States and any rules or regulations 
 30.13  made thereunder, and is authorized to act as agent of any 
 30.14  governmental subdivision of the state with jurisdiction in the 
 30.15  metropolitan area upon request of such subdivision in accepting 
 30.16  the aid in its behalf for such programs or projects financed 
 30.17  either in whole or in part by federal aid.  The governing body 
 30.18  of any such subdivision is authorized to designate the 
 30.19  metropolitan council commissioner as its agent for such purposes 
 30.20  and to enter into an agreement with the council commissioner 
 30.21  prescribing the terms and conditions of the agency relationship 
 30.22  in accordance with state and federal laws, rules and 
 30.23  regulations.  The metropolitan council is authorized to 
 30.24  designate an appropriate state agency as its agent for such 
 30.25  purposes and to enter into an agreement with such agency 
 30.26  prescribing the terms and conditions of the agency relationship 
 30.27  in accordance with state and federal laws, rules and regulations.
 30.28     Nothing contained herein shall limit any separate authority 
 30.29  of agencies or governmental subdivisions of the state to 
 30.30  contract for and receive federal aid. 
 30.31     Sec. 30.  [473.3715] [DEFINITIONS.] 
 30.32     Subdivision 1.  [COMMISSIONER.] "Commissioner" means the 
 30.33  commissioner of transportation for the purposes of sections 
 30.34  473.371 to 473.449. 
 30.35     Subd. 2.  [DEPARTMENT.] "Department" means the department 
 30.36  of transportation for the purposes of sections 473.371 to 
 31.1   473.449. 
 31.2      Sec. 31.  Minnesota Statutes 1996, section 473.375, 
 31.3   subdivision 9, is amended to read: 
 31.4      Subd. 9.  [ADVISORY COMMITTEES.] The council commissioner 
 31.5   may establish one or more advisory committees composed of and 
 31.6   representing transit providers, transit users, and local units 
 31.7   of government to advise it in carrying out its purposes.  The 
 31.8   members of advisory committees serve without compensation.  
 31.9      Sec. 32.  Minnesota Statutes 1996, section 473.375, 
 31.10  subdivision 11, is amended to read: 
 31.11     Subd. 11.  [RIDESHARING.] The council commissioner shall 
 31.12  administer a ridesharing program in the metropolitan area, 
 31.13  except for the statewide vanpool leasing program conducted by 
 31.14  the commissioner of transportation and shall cooperate with the 
 31.15  commissioner in the conduct of ridesharing activities in areas 
 31.16  where the commissioner's programs and the council's program 
 31.17  overlap.  The council commissioner shall establish a rideshare 
 31.18  advisory committee to advise it in carrying out the program.  
 31.19  The council commissioner may contract for services in operating 
 31.20  the program.  
 31.21     Sec. 33.  Minnesota Statutes 1996, section 473.375, 
 31.22  subdivision 12, is amended to read: 
 31.23     Subd. 12.  [ASSISTANCE.] The council commissioner shall 
 31.24  offer, use, and apply its services to assist and advise transit 
 31.25  providers in the metropolitan transit area in the planning, 
 31.26  promotion, development, operation, and evaluation of programs 
 31.27  and projects which are undertaken or proposed to be undertaken 
 31.28  by contract with the council commissioner, and shall seek out 
 31.29  and select recipients of this assistance and advice.  
 31.30     Sec. 34.  Minnesota Statutes 1996, section 473.375, 
 31.31  subdivision 13, is amended to read: 
 31.32     Subd. 13.  [FINANCIAL ASSISTANCE.] The council commissioner 
 31.33  may provide financial assistance to public transit providers as 
 31.34  provided in sections 473.371 to 473.449.  The council may not 
 31.35  use the proceeds of bonds issued under section 473.39 to provide 
 31.36  capital assistance to private, for-profit operators of public 
 32.1   transit, unless the operators provide service under a contract 
 32.2   with the council, the former regional transit board, or 
 32.3   recipients of financial assistance under sections 473.371 to 
 32.4   473.449. 
 32.5      No political subdivision within the metropolitan area may 
 32.6   apply for federal transit assistance unless its application has 
 32.7   been submitted to and approved by the council commissioner. 
 32.8      Sec. 35.  Minnesota Statutes 1996, section 473.375, 
 32.9   subdivision 14, is amended to read: 
 32.10     Subd. 14.  [COORDINATION.] The council commissioner shall 
 32.11  coordinate transit operations within the metropolitan area and 
 32.12  shall establish a transit information program to provide transit 
 32.13  users with accurate information on transit schedules and service.
 32.14     Sec. 36.  Minnesota Statutes 1996, section 473.375, 
 32.15  subdivision 15, is amended to read: 
 32.16     Subd. 15.  [PERFORMANCE STANDARDS.] The council 
 32.17  commissioner may establish performance standards for recipients 
 32.18  of financial assistance. 
 32.19     Sec. 37.  Minnesota Statutes 1996, section 473.382, is 
 32.20  amended to read: 
 32.21     473.382 [LOCAL PLANNING AND DEVELOPMENT PROGRAM.] 
 32.22     The council commissioner shall establish a program to 
 32.23  ensure participation by representatives of local government 
 32.24  units and the coordination of the planning and development of 
 32.25  transit by local government units.  The council commissioner 
 32.26  shall encourage the establishment of local transit planning and 
 32.27  development boards by local governments for the purpose of:  
 32.28     (a) identifying service needs and objectives; 
 32.29     (b) preparing, or advising and assisting local units of 
 32.30  government in preparing the transit study and service plan 
 32.31  required by section 473.384; 
 32.32     (c) preparing or advising the council commissioner in the 
 32.33  review of applications for assistance under section 473.384.  
 32.34     The council commissioner may provide local boards with 
 32.35  whatever assistance it the commissioner deems necessary and 
 32.36  appropriate.  
 33.1      Sec. 38.  Minnesota Statutes 1996, section 473.384, is 
 33.2   amended to read: 
 33.3      473.384 [CONTRACTS.] 
 33.4      Subdivision 1.  [CONTRACTS REQUIRED.] The council 
 33.5   commissioner shall make contracts with eligible recipients for 
 33.6   financial assistance to transit service within the metropolitan 
 33.7   area.  The council commissioner may not give financial 
 33.8   assistance to another transit provider without first having 
 33.9   executed a contract.  The provisions of this section do not 
 33.10  apply to contracts made under sections section 473.386 and 
 33.11  473.388.  
 33.12     Subd. 2.  [ELIGIBILITY.] To be eligible to receive 
 33.13  financial assistance by contract under this section a recipient 
 33.14  must be:  
 33.15     (a) a county, statutory or home rule charter city or town 
 33.16  or combination thereof, or public authority organized and 
 33.17  existing pursuant to chapter 398A, providing financial 
 33.18  assistance to or providing or operating public transit; or 
 33.19     (b) a private provider of public transit; or 
 33.20     (c) a transit provider formerly operated under section 
 33.21  473.388.  
 33.22     Subd. 3.  [APPLICATIONS.] The council commissioner shall 
 33.23  establish procedures and standards for review and approval of 
 33.24  applications for financial assistance under this section.  An 
 33.25  applicant must provide the council commissioner with the 
 33.26  financial and other information the council commissioner 
 33.27  requires to carry out its duties.  The council commissioner may 
 33.28  specify procedures, including public hearing requirements, to be 
 33.29  followed by applicants that are cities, towns, or counties or 
 33.30  combinations thereof in conducting transit studies and 
 33.31  formulating service plans under subdivisions 4 and 5.  
 33.32     Subd. 4.  [TRANSIT STUDY.] The council commissioner shall 
 33.33  require that prior to applying for financial assistance by 
 33.34  contract under clause (a) of subdivision 2, the applicant must 
 33.35  prepare and submit a transit study which includes the following 
 33.36  elements: 
 34.1      (a) a determination of existing and future transit needs 
 34.2   within the area to be served, and an assessment of the adequacy 
 34.3   of existing service to meet the needs; 
 34.4      (b) an assessment of the level and type of service required 
 34.5   to meet unmet needs; 
 34.6      (c) an assessment of existing and future resources 
 34.7   available for the financing of transit service; and 
 34.8      (d) the type or types of any new government arrangements or 
 34.9   agreements needed to provide adequate service.  
 34.10     The transit study for any applicant may be done by the 
 34.11  council commissioner.  
 34.12     Subd. 5.  [SERVICE PLAN.] The council commissioner shall, 
 34.13  before making a contract with an eligible recipient, require the 
 34.14  submission of a service plan which includes the following 
 34.15  elements:  
 34.16     (a) a description of the service proposed for financial 
 34.17  assistance, including vehicles, routes, and schedules; 
 34.18     (b) an assessment of the extent to which the proposed 
 34.19  service meets the needs as determined by the transit study; 
 34.20     (c) a description of the contract administration and review 
 34.21  process if the operation of the proposed service is to be done 
 34.22  by a private contractor; 
 34.23     (d) a description of the amount required to establish and 
 34.24  operate the proposed service and the proposed sources of the 
 34.25  required amount including operating revenue, other local 
 34.26  sources, and assistance from the council commissioner and from 
 34.27  federal sources; 
 34.28     (e) the fare structure of the proposed service; and 
 34.29     (f) projections of usage of the system.  
 34.30     The council commissioner may specify procedures, including 
 34.31  public hearing requirements, to be followed by applicants that 
 34.32  are cities, towns, or counties or combinations thereof in 
 34.33  conducting transit studies and formulating service plans.  
 34.34     Subd. 6.  [FINANCIAL ASSISTANCE FOR CERTAIN PROVIDERS.] The 
 34.35  council commissioner shall provide financial assistance to 
 34.36  recipients who were receiving assistance by contract with the 
 35.1   commissioner of transportation under Minnesota Statutes 1982, 
 35.2   section 174.24, subdivision 3 on July 1, 1984, so that the 
 35.3   percentage of total operating cost, as defined by the council 
 35.4   commissioner, paid by the recipient from all local sources of 
 35.5   revenue, including operating revenue, does not exceed the 
 35.6   percentage for the recipient's classification as determined by 
 35.7   the commissioner of transportation under the commissioner's 
 35.8   final contract with the recipient.  The council may include 
 35.9   funds received under section 473.446, subdivision 1a, as a local 
 35.10  source of revenue.  The remainder of the total operating cost 
 35.11  will be paid by the council commissioner less all assistance 
 35.12  received by the recipient for that purpose from any federal 
 35.13  source.  
 35.14     If a recipient informs the council commissioner in writing 
 35.15  prior to the distribution of financial assistance for any year 
 35.16  that paying its designated percentage of total operating cost 
 35.17  from local sources will cause undue hardship, the council 
 35.18  commissioner may adjust the percentage as it deems equitable.  
 35.19  If for any year the funds available to the council commissioner 
 35.20  are insufficient to allow the council commissioner to pay its 
 35.21  the department's share of total operating cost for those 
 35.22  recipients, the council commissioner shall reduce its share in 
 35.23  each classification to the extent necessary.  
 35.24     Subd. 7.  [TRANSIT OPERATIONS IMPACT ASSESSMENT.] Prior to 
 35.25  entering into a contract for operating assistance with a 
 35.26  recipient, the council commissioner shall evaluate the effect, 
 35.27  if any, of the contract on the ridership, routes, schedules, 
 35.28  fares, and staffing levels of the existing and proposed service 
 35.29  provided by the council department.  The council commissioner 
 35.30  may enter into the contract only if it determines that the 
 35.31  service to be assisted under the contract will not impose an 
 35.32  undue hardship on the ridership or financial condition of 
 35.33  the council's department's transit operations.  The requirements 
 35.34  of this subdivision do not apply to contracts for assistance to 
 35.35  recipients who, as part of a negotiated cost-sharing arrangement 
 35.36  with the council commissioner, pay a substantial part of the 
 36.1   cost of services that directly benefit the recipient as an 
 36.2   institution or organization. 
 36.3      Subd. 8.  [PARATRANSIT CONTRACTS.] In executing and 
 36.4   administering contracts for paratransit projects, the council 
 36.5   commissioner has the powers and duties given to the commissioner 
 36.6   of transportation in section 174.255, subdivisions 1 and 2 
 36.7   relating to handicapped accessibility and insurance coverage.  
 36.8   The provisions of section 174.255, subdivision 3, apply to 
 36.9   paratransit projects which receive assistance by contract with 
 36.10  the council commissioner. 
 36.11     Sec. 39.  Minnesota Statutes 1996, section 473.385, 
 36.12  subdivision 1, is amended to read: 
 36.13     Subdivision 1.  [DEFINITIONS.] (a) "Fully developed service 
 36.14  area" means the fully developed area, as defined in by the 
 36.15  metropolitan council's development guide, plus the cities of 
 36.16  Mendota Heights, Maplewood, North St. Paul, and Little Canada. 
 36.17     (b) "Regular route transit" has the meaning given it in 
 36.18  section 174.22, subdivision 8, except that, for purposes of this 
 36.19  section, the term does not include services on fixed routes and 
 36.20  schedules that are primarily intended to provide circulator 
 36.21  service within a community or adjacent communities rather than 
 36.22  feeder service to the system of metropolitan regular route 
 36.23  transit operated by the council department. 
 36.24     Sec. 40.  Minnesota Statutes 1996, section 473.385, 
 36.25  subdivision 2, is amended to read: 
 36.26     Subd. 2.  [SERVICE AREAS.] The council commissioner may 
 36.27  provide financial assistance (whether directly or through 
 36.28  another entity) to private, for-profit operators of public 
 36.29  transit only for the following services: 
 36.30     (1) services that are not regular route services; 
 36.31     (2) regular route services provided on June 2, 1989, by a 
 36.32  private, for-profit operator under contract with the former 
 36.33  regional transit board or under a certificate of convenience and 
 36.34  necessity issued by the transportation regulation board; 
 36.35     (3) regular route services outside of the fully developed 
 36.36  service area that are not operated on June 2, 1989, by the 
 37.1   former metropolitan transit commission; 
 37.2      (4) regular route services provided under section 473.388; 
 37.3      (5) regular route services to recipients who, as part of a 
 37.4   negotiated cost-sharing arrangement with the council 
 37.5   commissioner, pay at least 50 percent of the cost of the service 
 37.6   that directly benefits the recipient as an institution or 
 37.7   organization; or 
 37.8      (6) regular route services that will not be operated for a 
 37.9   reasonable subsidy by the council commissioner. 
 37.10     Sec. 41.  Minnesota Statutes 1996, section 473.386, 
 37.11  subdivision 1, is amended to read:  
 37.12     Subdivision 1.  [SERVICE OBJECTIVES.] The council 
 37.13  commissioner shall implement a special transportation service, 
 37.14  as defined in section 174.29, in the metropolitan area.  The 
 37.15  service has the following objectives:  
 37.16     (a) to provide greater access to transportation for the 
 37.17  elderly, people with disabilities, and others with special 
 37.18  transportation needs in the metropolitan area; 
 37.19     (b) to develop an integrated system of special 
 37.20  transportation service providing transportation tailored to meet 
 37.21  special individual needs in the most cost-efficient manner; and 
 37.22     (c) to use existing public, private, and private nonprofit 
 37.23  providers of service wherever possible, to supplement rather 
 37.24  than replace existing service, and to increase the productivity 
 37.25  of all special transportation vehicles available in the area.  
 37.26     Sec. 42.  Minnesota Statutes 1996, section 473.386, 
 37.27  subdivision 2, is amended to read: 
 37.28     Subd. 2.  [SERVICE CONTRACTS; MANAGEMENT; TRANSPORTATION 
 37.29  ACCESSIBILITY ADVISORY COMMITTEE.] (a) The council commissioner 
 37.30  may contract for services necessary for the provision of special 
 37.31  transportation.  Transportation service provided under a 
 37.32  contract must specify the service to be provided, the standards 
 37.33  that must be met, and the rates for operating and providing 
 37.34  special transportation services.  
 37.35     (b) The council commissioner shall establish management 
 37.36  policies for the service and may contract with a service 
 38.1   administrator for day-to-day administration and management of 
 38.2   the service.  Any contract must delegate to the service 
 38.3   administrator clear authority to administer and manage the 
 38.4   delivery of the service pursuant to council department 
 38.5   management policies and must establish performance and 
 38.6   compliance standards for the service administrator.  The council 
 38.7   commissioner may provide directly day to day administration and 
 38.8   management of the service and may own or lease vehicles used to 
 38.9   provide the service.  
 38.10     (c) The council commissioner shall ensure that the service 
 38.11  administrator establishes a system for registering and 
 38.12  expeditiously responding to complaints by users, informing users 
 38.13  of how to register complaints, and requiring providers to report 
 38.14  on incidents that impair the safety and well-being of users or 
 38.15  the quality of the service.  The council commissioner shall 
 38.16  annually report to the commissioner of transportation and the 
 38.17  legislature on complaints and provider reports, the response of 
 38.18  the service administrator, and steps taken by the council 
 38.19  commissioner and the service administrator to identify causes 
 38.20  and provide remedies to recurring problems. 
 38.21     (d) Each year before renewing contracts with providers and 
 38.22  the service administrator, the council commissioner shall 
 38.23  provide an opportunity for the transportation accessibility 
 38.24  advisory committee, users, and other interested persons to 
 38.25  testify before the council commissioner concerning providers, 
 38.26  contract terms, and other matters relating to council department 
 38.27  policies and procedures for implementing the service. 
 38.28     (e) The council commissioner shall establish a 
 38.29  transportation accessibility advisory committee.  The 
 38.30  transportation accessibility advisory committee must include 
 38.31  elderly and disabled persons, other users of special 
 38.32  transportation service, representatives of persons contracting 
 38.33  to provide special transportation services, and representatives 
 38.34  of appropriate agencies for elderly and disabled persons to 
 38.35  advise the council commissioner on management policies for the 
 38.36  service.  At least half the transportation accessibility 
 39.1   advisory committee members must be disabled or elderly persons 
 39.2   or the representatives of disabled or elderly persons.  Two of 
 39.3   the appointments to the transportation accessibility advisory 
 39.4   committee shall be made by the council on disability in 
 39.5   consultation with the chair of the metropolitan 
 39.6   council commissioner. 
 39.7      Sec. 43.  Minnesota Statutes 1996, section 473.386, 
 39.8   subdivision 2a, is amended to read: 
 39.9      Subd. 2a.  [ELIGIBILITY CERTIFICATION.] The council 
 39.10  commissioner shall include the notice of penalty for fraudulent 
 39.11  certification, and require the person certifying the applicant 
 39.12  to sign the eligibility certification form and the applicant to 
 39.13  sign the application form, as provided in section 174.295. 
 39.14     Sec. 44.  Minnesota Statutes 1996, section 473.386, 
 39.15  subdivision 3, is amended to read: 
 39.16     Subd. 3.  [DUTIES OF COUNCIL COMMISSIONER.] In implementing 
 39.17  the special transportation service, the council commissioner 
 39.18  shall:  
 39.19     (a) encourage participation in the service by public, 
 39.20  private, and private nonprofit providers of special 
 39.21  transportation currently receiving capital or operating 
 39.22  assistance from a public agency; 
 39.23     (b) contract with public, private, and private nonprofit 
 39.24  providers that have demonstrated their ability to effectively 
 39.25  provide service at a reasonable cost; 
 39.26     (c) encourage individuals using special transportation to 
 39.27  use the type of service most appropriate to their particular 
 39.28  needs; 
 39.29     (d) ensure that all persons providing special 
 39.30  transportation service receive equitable treatment in the 
 39.31  allocation of the ridership; 
 39.32     (e) encourage shared rides to the greatest extent 
 39.33  practicable; 
 39.34     (f) encourage public agencies that provide transportation 
 39.35  to eligible individuals as a component of human services and 
 39.36  educational programs to coordinate with this service and to 
 40.1   allow reimbursement for transportation provided through the 
 40.2   service at rates that reflect the public cost of providing that 
 40.3   transportation; 
 40.4      (g) establish criteria to be used in determining individual 
 40.5   eligibility for special transportation services; 
 40.6      (h) consult with the transportation accessibility advisory 
 40.7   committee in a timely manner before changes are made in the 
 40.8   provision of special transportation services, including, but not 
 40.9   limited to, changes in policies affecting the matters subject to 
 40.10  hearing under subdivision 2; 
 40.11     (i) provide for effective administration and enforcement of 
 40.12  council department policies and standards; and 
 40.13     (j) annually evaluate providers of special transportation 
 40.14  service to ensure compliance with the standards established for 
 40.15  the program. 
 40.16     Sec. 45.  Minnesota Statutes 1996, section 473.386, 
 40.17  subdivision 4, is amended to read: 
 40.18     Subd. 4.  [COORDINATION REQUIRED.] The council commissioner 
 40.19  may not grant any financial assistance to any recipient that 
 40.20  proposes to use any part of the grant to provide special 
 40.21  transportation service in the metropolitan area unless the 
 40.22  program is coordinated with the council's department's special 
 40.23  transportation service in the manner determined by the council 
 40.24  department.  The council commissioner is not required to provide 
 40.25  funding for transportation services from a residence to a 
 40.26  service site and home again when the services are used by 
 40.27  individuals in conjunction with their participation in human 
 40.28  service developmental achievement center programs in which 
 40.29  transportation to and from the program is a required and funded 
 40.30  component of those programs. 
 40.31     Sec. 46.  Minnesota Statutes 1996, section 473.386, 
 40.32  subdivision 5, is amended to read: 
 40.33     Subd. 5.  [EQUITABLE ALLOCATION AND ANNUAL REALLOCATION.] 
 40.34  The council commissioner shall distribute all available funding 
 40.35  under this section in a manner designed to achieve an equitable 
 40.36  allocation of special transportation services based on the 
 41.1   proportion of the number of elderly, disabled, or economically 
 41.2   disadvantaged individuals with special transportation needs who 
 41.3   actually use the special transportation service.  
 41.4      Sec. 47.  Minnesota Statutes 1996, section 473.386, 
 41.5   subdivision 6, is amended to read: 
 41.6      Subd. 6.  [OPERATING AND SERVICE STANDARDS.] A person 
 41.7   operating or assisting the operation of a vehicle may leave the 
 41.8   vehicle to enter premises in order to help a passenger who does 
 41.9   not require emergency ambulance service.  Operators and 
 41.10  assistants shall provide the help necessary for 
 41.11  door-through-door service, including help in entering and 
 41.12  leaving the vehicle and help through the exterior entrance and 
 41.13  over any exterior steps at either departure or destination 
 41.14  buildings, provided that both the steps and the wheelchair are 
 41.15  in good repair.  If an operator or assistant refuses help 
 41.16  because of the condition of the steps or the wheelchair, the 
 41.17  operator of the service shall send letters to the service 
 41.18  administrator designated by the council commissioner, who shall 
 41.19  notify the person denied service describing the corrective 
 41.20  measures necessary to qualify for service.  
 41.21     Sec. 48.  Minnesota Statutes 1996, section 473.387, 
 41.22  subdivision 2, is amended to read: 
 41.23     Subd. 2.  [ADMINISTRATION.] The council commissioner shall 
 41.24  design and administer the programs under this section.  The 
 41.25  council commissioner may request proposals for projects to 
 41.26  demonstrate methods of achieving the purposes of programs 
 41.27  administered under this section.  The council commissioner shall 
 41.28  design or ensure the design of programs that will provide better 
 41.29  access for the targeted service groups to places of employment 
 41.30  and activity throughout the metropolitan area, using regular 
 41.31  route transit, paratransit, taxis, car or van pools, or other 
 41.32  means of conveyance.  The council commissioner may organize the 
 41.33  services by providing to individuals, directly or indirectly, 
 41.34  reduced fares or passes on public transit or vouchers to be used 
 41.35  to purchase transportation; by contracting with public and 
 41.36  private providers; by arrangements with government agencies, 
 42.1   civic and community organizations or nonprofit groups providing 
 42.2   assistance to the targeted service groups; by arrangements with 
 42.3   prospective employers, with employment, education, retail, 
 42.4   medical, or other activity centers, or with local governments; 
 42.5   or by any other methods designed to improve service and reduce 
 42.6   costs to the targeted service groups. 
 42.7      Sec. 49.  Minnesota Statutes 1996, section 473.387, 
 42.8   subdivision 3, is amended to read: 
 42.9      Subd. 3.  [JOBSEEKERS.] The council commissioner shall 
 42.10  establish a program and policies to increase the availability 
 42.11  and utility of public transit services and reduce transportation 
 42.12  costs for persons who are seeking employment and who lack 
 42.13  private means of transportation. 
 42.14     Sec. 50.  Minnesota Statutes 1996, section 473.387, 
 42.15  subdivision 4, is amended to read: 
 42.16     Subd. 4.  [TRANSIT DISADVANTAGED.] The council commissioner 
 42.17  shall establish a program and policies to reduce transportation 
 42.18  costs for persons who are, because of limited incomes, age, 
 42.19  disability, or other reasons, especially dependent on public 
 42.20  transit for common mobility. 
 42.21     Sec. 51.  Minnesota Statutes 1996, section 473.391, is 
 42.22  amended to read: 
 42.23     473.391 [ROUTE PLANNING AND SCHEDULING.] 
 42.24     Subdivision 1.  [CONTRACTS.] The council commissioner may 
 42.25  contract with other operators or local governments for route 
 42.26  planning and scheduling services in any configuration of new or 
 42.27  reconfiguration of existing transit services and routes, 
 42.28  including route planning and scheduling necessary for the test 
 42.29  marketing program, the service bidding program, and the 
 42.30  interstate highway described generally as legislative routes 
 42.31  Nos. 10 and 107 between I-494 and the Hawthorne interchange in 
 42.32  the city of Minneapolis, commonly known as I-394.  
 42.33     Subd. 2.  [ROUTE ELIMINATION; SERVICE REDUCTION.] The 
 42.34  council commissioner shall, before making a determination to 
 42.35  eliminate or reduce service on existing transit routes, consider:
 42.36     (1) the level of subsidy per passenger on each route; 
 43.1      (2) the availability and proximity of alternative transit 
 43.2   routes; and 
 43.3      (3) the percentage of transit dependent riders, including 
 43.4   youth, elderly, low-income, and disabled riders currently using 
 43.5   each route. 
 43.6      Sec. 52.  Minnesota Statutes 1996, section 473.3915, 
 43.7   subdivision 3, is amended to read: 
 43.8      Subd. 3.  [TRANSIT ZONE.] "Transit zone" means the area 
 43.9   within one-quarter of a mile of a route along which regular 
 43.10  route transit service is provided that is also within the 
 43.11  metropolitan urban service area, as determined by the council 
 43.12  commissioner.  "Transit zone" includes any light rail transit 
 43.13  route for which funds for construction have been committed. 
 43.14     Sec. 53.  Minnesota Statutes 1996, section 473.3915, 
 43.15  subdivision 4, is amended to read: 
 43.16     Subd. 4.  [TRANSIT ZONES; MAP AND PLAN.] For the purposes 
 43.17  of section 273.13, subdivision 24, the council commissioner 
 43.18  shall designate transit zones and identify them on a detailed 
 43.19  map and in a plan.  The council commissioner shall review the 
 43.20  map and plan once a year and revise them as necessary to 
 43.21  indicate the current transit zones.  The council commissioner 
 43.22  shall provide each county and city assessor in the metropolitan 
 43.23  area a copy of the current map and plan. 
 43.24     Sec. 54.  Minnesota Statutes 1996, section 473.392, is 
 43.25  amended to read: 
 43.26     473.392 [SERVICE BIDDING.] 
 43.27     The council commissioner may competitively bid transit 
 43.28  service only in accordance with standards, procedures, and 
 43.29  guidelines adopted by resolution of the council commissioner.  
 43.30  The council commissioner shall establish a project management 
 43.31  team to assist and advise the council commissioner in developing 
 43.32  and implementing standards, procedures, and guidelines.  The 
 43.33  project management team must include representatives of the 
 43.34  Amalgamated Transit Union Local 1005, private operators, local 
 43.35  governments, and other persons interested in the subject.  At 
 43.36  least 60 days before adopting any standards, procedures, or 
 44.1   guidelines for competitive bidding of transit service, 
 44.2   the council commissioner shall hold a public hearing on the 
 44.3   subject.  The council commissioner shall publish notice of the 
 44.4   hearing in newspapers of general circulation in the metropolitan 
 44.5   area not less than 15 days before the hearing.  At the hearing 
 44.6   all interested persons must be afforded an opportunity to 
 44.7   present their views orally and in writing.  Following the 
 44.8   hearing, and after considering the testimony, the council 
 44.9   commissioner shall revise and adopt the standards, procedures, 
 44.10  and guidelines. 
 44.11     Sec. 55.  Minnesota Statutes 1996, section 473.399, is 
 44.12  amended to read: 
 44.13     473.399 [LIGHT RAIL TRANSIT; REGIONAL PLAN.] 
 44.14     Subdivision 1.  [GENERAL REQUIREMENTS.] (a) The 
 44.15  council commissioner shall adopt a regional light rail transit 
 44.16  plan to ensure that light rail transit facilities in the 
 44.17  metropolitan area will be acquired, developed, owned, and 
 44.18  capable of operation in an efficient, cost-effective, and 
 44.19  coordinated manner as an integrated and unified system on a 
 44.20  multicounty basis in coordination with buses and other 
 44.21  transportation modes and facilities.  To the extent practicable, 
 44.22  the council commissioner shall incorporate into its the plan 
 44.23  appropriate elements of the plans of regional railroad 
 44.24  authorities and the metropolitan council in order to avoid 
 44.25  duplication of effort. 
 44.26     (b) The regional plan required by this section must be 
 44.27  adopted by the council commissioner before the commissioner of 
 44.28  transportation may begin construction of light rail transit 
 44.29  facilities and before the commissioner may expend funds 
 44.30  appropriated or obtained through bonding for constructing light 
 44.31  rail transit facilities.  Following adoption of the regional 
 44.32  plan, each regional railroad authority and the commissioner of 
 44.33  transportation shall act in conformity with the plan.  The 
 44.34  commissioner shall prepare or amend the final design plans as 
 44.35  necessary to make the plans consistent with the regional plan. 
 44.36     (c) Throughout the development and implementation of the 
 45.1   plan, the council commissioner shall contract for or otherwise 
 45.2   obtain engineering services to assure that the plan adequately 
 45.3   addresses the technical aspects of light rail transit.  
 45.4      Sec. 56.  Minnesota Statutes 1996, section 473.3994, 
 45.5   subdivision 5, is amended to read: 
 45.6      Subd. 5.  [FINAL DESIGN PLANS.] (a) Before beginning 
 45.7   construction, the commissioner shall submit the physical design 
 45.8   component of final design plans to the governing body of each 
 45.9   statutory and home rule city, county, and town in which the 
 45.10  route is proposed to be located.  Within 60 days after the 
 45.11  submission of the plans, the city, county, or town shall review 
 45.12  and approve or disapprove the plans for the route located in the 
 45.13  city, county, or town.  A local unit of government that 
 45.14  disapproves the plans shall describe specific amendments to the 
 45.15  plans that, if adopted, would cause the local unit to withdraw 
 45.16  its disapproval.  Failure to approve or disapprove the plans in 
 45.17  writing within the time period is deemed to be approval, unless 
 45.18  an extension is agreed to by the city, county, or town and the 
 45.19  commissioner.  
 45.20     (b) If the governing body of one or more cities, counties, 
 45.21  or towns disapproves the plans within the period allowed under 
 45.22  paragraph (a), the commissioner may refer the plans, along with 
 45.23  any comments of local jurisdictions, to the metropolitan 
 45.24  council.  The council shall review the final design plans under 
 45.25  the same procedure and with the same effect as provided in 
 45.26  subdivision 4 for preliminary design plans. 
 45.27     Sec. 57.  Minnesota Statutes 1996, section 473.3994, 
 45.28  subdivision 8, is amended to read: 
 45.29     Subd. 8.  [METROPOLITAN SIGNIFICANCE.] This section does 
 45.30  not diminish or replace the authority of the council under 
 45.31  section 473.173 in areas other than transportation. 
 45.32     Sec. 58.  Minnesota Statutes 1996, section 473.3994, 
 45.33  subdivision 9, is amended to read: 
 45.34     Subd. 9.  [LIGHT RAIL TRANSIT OPERATING COSTS.] (a) Before 
 45.35  submitting an application for federal assistance for light rail 
 45.36  transit facilities in the metropolitan area, the applicant must 
 46.1   provide to the metropolitan council commissioner estimates of 
 46.2   the amount of operating subsidy which will be required to 
 46.3   operate light rail transit in the corridor to which the federal 
 46.4   assistance would be applied.  The information provided to the 
 46.5   council commissioner must indicate the amount of operating 
 46.6   subsidy estimated to be required in each of the first ten years 
 46.7   of operation of the light rail transit facility. 
 46.8      (b) The council commissioner must review and evaluate the 
 46.9   information provided under paragraph (a) with regard to the 
 46.10  effect of operating the light rail transit facility on the 
 46.11  currently available mechanisms for financing transit in the 
 46.12  metropolitan area. 
 46.13     (c) The council commissioner must present its evaluation to 
 46.14  the transportation and taxes committees of the house and senate, 
 46.15  to the appropriations committee of the house and the finance 
 46.16  committee of the senate, to the local government and 
 46.17  metropolitan affairs committee of the house, and to the 
 46.18  metropolitan affairs committee of the senate. 
 46.19     Sec. 59.  Minnesota Statutes 1996, section 473.3994, 
 46.20  subdivision 10, is amended to read: 
 46.21     Subd. 10.  [CORRIDOR MANAGEMENT COMMITTEE.] A corridor 
 46.22  management committee shall be established to advise the 
 46.23  commissioner of transportation in the design and construction of 
 46.24  light rail transit in each corridor to be constructed.  The 
 46.25  corridor management committee shall consist of the members of 
 46.26  the light rail transit joint powers board established pursuant 
 46.27  to section 473.3998 and one representative from each city in 
 46.28  which the corridor is located.  Additionally, the commissioner 
 46.29  of transportation and three representatives of the metropolitan 
 46.30  council shall each appoint a member to the committee.  For the 
 46.31  corridor between Minneapolis and St. Paul, the University of 
 46.32  Minnesota shall appoint one member to the committee.  A member 
 46.33  representing the metropolitan council The commissioner shall 
 46.34  appoint a member to chair the committee. 
 46.35     The corridor management committee shall advise the 
 46.36  commissioner of transportation and the regional railroad 
 47.1   authority or authorities in whose jurisdiction the line or lines 
 47.2   are located on issues relating to the alternatives analysis, 
 47.3   environmental review, preliminary design, preliminary 
 47.4   engineering, final design, implementation method, and 
 47.5   construction of light rail transit.  
 47.6      Sec. 60.  Minnesota Statutes 1996, section 473.3994, 
 47.7   subdivision 12, is amended to read: 
 47.8      Subd. 12.  [ALTERNATIVES ANALYSIS; ENVIRONMENTAL REVIEW.] 
 47.9   For light rail transit lines to be constructed in the 
 47.10  metropolitan area, the regional railroad authority or 
 47.11  authorities in whose jurisdiction a line or lines are to be 
 47.12  constructed and the commissioner of transportation shall jointly 
 47.13  prepare an alternatives analysis, the environmental review 
 47.14  documents required, and the preliminary engineering plan.  The 
 47.15  council must approve the design for the alternatives analysis 
 47.16  and the completed alternatives analysis.  The department of 
 47.17  transportation shall be the responsible governmental unit. 
 47.18     Sec. 61.  Minnesota Statutes 1996, section 473.3997, is 
 47.19  amended to read: 
 47.20     473.3997 [FEDERAL FUNDING; LIGHT RAIL TRANSIT.] 
 47.21     (a) Upon completion of the alternatives analysis and draft 
 47.22  environmental impact statement for the central corridor transit 
 47.23  improvement project, the council, the commissioner of 
 47.24  transportation, and the affected regional rail authorities may 
 47.25  prepare a joint application for federal assistance for light 
 47.26  rail transit facilities in the metropolitan area.  The 
 47.27  application must be reviewed and approved by the metropolitan 
 47.28  council before it is submitted by the council and the 
 47.29  commissioner.  In reviewing the application the council must 
 47.30  consider the information submitted to it under section 473.3994, 
 47.31  subdivision 9.  
 47.32     (b) Until the application described in paragraph (a) is 
 47.33  submitted, no political subdivision in the metropolitan area may 
 47.34  on its own apply for federal assistance for light rail transit 
 47.35  planning or construction. 
 47.36     Sec. 62.  Minnesota Statutes 1996, section 473.405, 
 48.1   subdivision 1, is amended to read: 
 48.2      Subdivision 1.  [GENERAL.] The metropolitan 
 48.3   council commissioner has the powers and duties prescribed by 
 48.4   this section and sections 473.407 to 473.449 and all powers 
 48.5   necessary or convenient to discharge its the commissioner's 
 48.6   duties.  
 48.7      Sec. 63.  Minnesota Statutes 1996, section 473.405, 
 48.8   subdivision 3, is amended to read: 
 48.9      Subd. 3.  [CONDEMNATION.] The council commissioner may for 
 48.10  transit purposes acquire property, franchises, easements, or 
 48.11  property rights or interests of any kind by condemnation 
 48.12  proceedings pursuant to chapter 117.  Except as provided in 
 48.13  subdivision 9, the council commissioner may take possession of 
 48.14  any property for which condemnation proceedings have been 
 48.15  commenced at any time after the filing of the petition 
 48.16  describing the property in the proceedings.  The council 
 48.17  commissioner may contract with an operator or other persons for 
 48.18  the use by the operator or person of any property under 
 48.19  the council's commissioner's control.  
 48.20     Sec. 64.  Minnesota Statutes 1996, section 473.405, 
 48.21  subdivision 4, is amended to read: 
 48.22     Subd. 4.  [TRANSIT SYSTEMS.] The council commissioner may 
 48.23  engineer, construct, equip, and operate transit and paratransit 
 48.24  systems, projects, or any parts thereof, including road lanes or 
 48.25  rights of way, terminal facilities, maintenance and garage 
 48.26  facilities, ramps, parking areas, and any other facilities 
 48.27  useful for or related to any public transit or paratransit 
 48.28  system or project.  
 48.29     Sec. 65.  Minnesota Statutes 1996, section 473.405, 
 48.30  subdivision 5, is amended to read: 
 48.31     Subd. 5.  [ACQUISITION OF TRANSIT SYSTEMS.] The 
 48.32  council commissioner may acquire by purchase, lease, gift, or 
 48.33  condemnation proceedings any existing public transit system or 
 48.34  any part thereof, including all or any part of the plant, 
 48.35  equipment, shares of stock, property, real, personal, or mixed, 
 48.36  rights in property, reserve funds, special funds, franchises, 
 49.1   licenses, patents, permits and papers, documents and records 
 49.2   belonging to any operator of a public transit system within the 
 49.3   metropolitan area, and may in connection therewith assume any or 
 49.4   all liabilities of any operator of a public transit system.  The 
 49.5   council commissioner may take control of and operate a system 
 49.6   immediately following the filing and approval of the initial 
 49.7   petition for condemnation, if the council commissioner, in its 
 49.8   the commissioner's discretion, determines this to be necessary, 
 49.9   and may take possession of all right, title and other powers of 
 49.10  ownership in all properties and facilities described in the 
 49.11  petition.  Control must be taken by resolution which is 
 49.12  effective upon service of a copy on the condemnee and the filing 
 49.13  of the resolution in the condemnation action.  In the 
 49.14  determination of the fair value of the existing public transit 
 49.15  system, there must not be included any value attributable to 
 49.16  expenditures for improvements made by the former metropolitan 
 49.17  transit commission or the former metropolitan council. 
 49.18     The council commissioner may continue or terminate within 
 49.19  three months of acquisition any advertising contract in 
 49.20  existence by and between any advertiser and a transit system 
 49.21  that the council commissioner has acquired.  If the council 
 49.22  commissioner determines to terminate the advertising 
 49.23  contract, it the commissioner shall acquire all of the 
 49.24  advertiser's rights under the contract by purchase or eminent 
 49.25  domain proceedings as provided by law. 
 49.26     Sec. 66.  Minnesota Statutes 1996, section 473.405, 
 49.27  subdivision 9, is amended to read: 
 49.28     Subd. 9.  [CONDEMNATION OF PUBLIC PROPERTY OR PROPERTY OF 
 49.29  PUBLIC SERVICE CORPORATIONS.] The fact that property is owned by 
 49.30  or is in charge of a public agency or a public service 
 49.31  corporation organized for a purpose specified in section 300.03, 
 49.32  or is already devoted to a public use or to use by the 
 49.33  corporation or was acquired therefor by condemnation may not 
 49.34  prevent its acquisition by the council commissioner by 
 49.35  condemnation, but if the property is in actual public use or in 
 49.36  actual use by the corporation for any purpose of interest or 
 50.1   benefit to the public, the taking by the council commissioner by 
 50.2   condemnation may not be authorized unless the court finds and 
 50.3   determines that there is greater public necessity for the 
 50.4   proposed use by the council commissioner than for the existing 
 50.5   use. 
 50.6      Sec. 67.  Minnesota Statutes 1996, section 473.405, 
 50.7   subdivision 10, is amended to read: 
 50.8      Subd. 10.  [VOLUNTARY TRANSFER OF PUBLIC PROPERTY TO THE 
 50.9   COUNCIL COMMISSIONER.] Any state department or other agency of 
 50.10  the state government or any county, municipality, or other 
 50.11  public agency may sell, lease, grant, transfer, or convey to the 
 50.12  council commissioner, with or without consideration, any 
 50.13  facilities or any part or parts thereof or any real or personal 
 50.14  property or interest therein which may be useful to the council 
 50.15  commissioner for any authorized purpose.  In any case where the 
 50.16  construction of a facility has not been completed, the public 
 50.17  agency concerned may also transfer, sell, assign, and set over 
 50.18  to the council commissioner, with or without consideration, any 
 50.19  existing contract for the construction of the facilities.  
 50.20     Sec. 68.  Minnesota Statutes 1996, section 473.405, 
 50.21  subdivision 12, is amended to read: 
 50.22     Subd. 12.  [MANAGEMENT CONTRACTS.] Notwithstanding any of 
 50.23  the other provisions of this section and sections 473.407 to 
 50.24  473.449, the council commissioner may, in lieu of directly 
 50.25  operating any public transit system or any part thereof, enter 
 50.26  into contracts for management services.  The contracts may 
 50.27  provide for compensation, incentive fees, the employment of 
 50.28  personnel, the services provided, and other terms and conditions 
 50.29  that the council commissioner deems proper.  The contracts must 
 50.30  provide that the compensation of personnel who work full time or 
 50.31  substantially full time providing management or other services 
 50.32  for the council commissioner is public data under chapter 13.  
 50.33     The council commissioner may not permit a contract manager 
 50.34  to supervise or manage internal audit activities.  Internal 
 50.35  audit activity must be supervised and managed directly by the 
 50.36  council commissioner.  The council commissioner shall advertise 
 51.1   for bids and select contracts for management services through 
 51.2   competitive bidding.  The term of the contract may not be longer 
 51.3   than two years.  The contract must include clear operating 
 51.4   objectives, stating the service policies and goals of 
 51.5   the council commissioner in terms of the movement of various 
 51.6   passenger groups, and performance criteria, by means of which 
 51.7   success in achieving the operating objectives can be measured.  
 51.8   The council commissioner shall consider and determine the 
 51.9   feasibility and desirability of having all its transit 
 51.10  management services provided internally by employees of the 
 51.11  council commissioner.  
 51.12     The employees of any public transit system operated 
 51.13  pursuant to the provisions of this subdivision for the purpose 
 51.14  of resolving any dispute arising under any existing or new 
 51.15  collective bargaining agreement relating to the terms or 
 51.16  conditions of their employment, may either engage in a concerted 
 51.17  refusal to work or to invoke the processes of final and binding 
 51.18  arbitration as provided by chapter 572, subject to any 
 51.19  applicable provisions of the agreement not inconsistent with law.
 51.20     Sec. 69.  Minnesota Statutes 1996, section 473.405, 
 51.21  subdivision 15, is amended to read: 
 51.22     Subd. 15.  [RELOCATION OF DISPLACED PERSONS.] The 
 51.23  council commissioner may plan for and assist in the relocation 
 51.24  of individuals, families, business concerns, nonprofit 
 51.25  organizations, and others displaced by operations of the council 
 51.26  department, and may make relocation payments in accordance with 
 51.27  federal regulations.  
 51.28     Sec. 70.  Minnesota Statutes 1996, section 473.4051, is 
 51.29  amended to read: 
 51.30     473.4051 [LIGHT RAIL TRANSIT OPERATION.] 
 51.31     The council department shall operate light rail transit 
 51.32  facilities and services upon completion of construction of the 
 51.33  facilities and the commencement of revenue service using the 
 51.34  facilities.  The commissioner of transportation and the council 
 51.35  may not allow the commencement of revenue service until after an 
 51.36  appropriate period of acceptance testing to ensure satisfactory 
 52.1   performance.  In assuming the operation of the system, the 
 52.2   council commissioner must comply with section 473.415.  The 
 52.3   council commissioner shall coordinate operation of the light 
 52.4   rail transit system with bus service to avoid duplication of 
 52.5   service on a route served by light rail transit and to ensure 
 52.6   the widest possible access to light rail transit lines in both 
 52.7   suburban and urban areas by means of a feeder bus system.  
 52.8      Sec. 71.  Minnesota Statutes 1996, section 473.407, 
 52.9   subdivision 1, is amended to read: 
 52.10     Subdivision 1.  [AUTHORIZATION.] The council commissioner 
 52.11  may appoint peace officers, as defined in section 626.84, 
 52.12  subdivision 1, paragraph (c), and establish a law enforcement 
 52.13  agency, as defined in section 626.84, subdivision 1, paragraph 
 52.14  (h), known as the metropolitan transit police, to police its 
 52.15  transit property and routes and to make arrests under sections 
 52.16  629.30 and 629.34.  The jurisdiction of the law enforcement 
 52.17  agency is limited to offenses relating to council department 
 52.18  transit property, equipment, employees, and passengers. 
 52.19     Sec. 72.  Minnesota Statutes 1996, section 473.407, 
 52.20  subdivision 3, is amended to read: 
 52.21     Subd. 3.  [POLICIES.] Before the council commissioner 
 52.22  begins to operate its the department's law enforcement agency 
 52.23  within a city or county with an existing law enforcement agency, 
 52.24  the transit police shall develop, in conjunction with the law 
 52.25  enforcement agencies, written policies that describe how the 
 52.26  issues of joint jurisdiction will be resolved.  The policies 
 52.27  must also address the operation of emergency vehicles by transit 
 52.28  police responding to transit emergencies.  These policies must 
 52.29  be filed with the board of peace officer standards and training 
 52.30  by August 1, 1993.  Revisions of any of these policies must be 
 52.31  filed with the board within ten days of the effective date of 
 52.32  the revision.  The council commissioner shall train all of its 
 52.33  peace officers regarding the application of these policies. 
 52.34     Sec. 73.  Minnesota Statutes 1996, section 473.407, 
 52.35  subdivision 4, is amended to read: 
 52.36     Subd. 4.  [CHIEF LAW ENFORCEMENT OFFICER.] The 
 53.1   council commissioner shall appoint a peace officer employed full 
 53.2   time to be the chief law enforcement officer and to be 
 53.3   responsible for the management of the law enforcement agency.  
 53.4   The person shall possess the necessary police and management 
 53.5   experience and have the title of chief of metropolitan transit 
 53.6   police services.  All other police management and supervisory 
 53.7   personnel must be employed full time by the council 
 53.8   commissioner.  Supervisory personnel must be on duty and 
 53.9   available any time transit police are on duty.  The 
 53.10  council commissioner may not hire part-time peace officers as 
 53.11  defined in section 626.84, subdivision 1, paragraph (f), except 
 53.12  that the council commissioner may appoint peace officers to work 
 53.13  on a part-time basis not to exceed 30 full-time equivalents. 
 53.14     Sec. 74.  Minnesota Statutes 1996, section 473.407, 
 53.15  subdivision 5, is amended to read: 
 53.16     Subd. 5.  [EMERGENCIES.] (a) The council commissioner shall 
 53.17  ensure that all emergency vehicles used by transit police are 
 53.18  equipped with radios capable of receiving and transmitting on 
 53.19  the same frequencies utilized by the law enforcement agencies 
 53.20  that have primary jurisdiction. 
 53.21     (b) When the transit police receive an emergency call they 
 53.22  shall notify the public safety agency with primary jurisdiction 
 53.23  and coordinate the appropriate response. 
 53.24     (c) Transit police officers shall notify the primary 
 53.25  jurisdictions of their response to any emergency. 
 53.26     Sec. 75.  Minnesota Statutes 1996, section 473.408, 
 53.27  subdivision 1, is amended to read: 
 53.28     Subdivision 1.  [DEFINITION.] "Off-peak hours" means the 
 53.29  time from 9:00 a.m. to 3:30 p.m. and 6:30 p.m. until the last 
 53.30  bus on Monday through Friday of each week and all day Saturday, 
 53.31  Sunday, and holidays designated by the council commissioner. 
 53.32     Sec. 76.  Minnesota Statutes 1996, section 473.408, 
 53.33  subdivision 2, is amended to read: 
 53.34     Subd. 2.  [FARE POLICY.] (a) Fares and fare collection 
 53.35  systems shall be established and administered to accomplish the 
 53.36  following purposes: 
 54.1      (1) to encourage and increase transit and paratransit 
 54.2   ridership with an emphasis on regular ridership; 
 54.3      (2) to restrain increases in the average operating subsidy 
 54.4   per passenger; 
 54.5      (3) to ensure that no riders on any route pay more in fares 
 54.6   than the average cost of providing the service on that route; 
 54.7      (4) to ensure that operating revenues are proportioned to 
 54.8   the cost of providing the service so as to reduce any disparity 
 54.9   in the subsidy per passenger on routes in the transit system; 
 54.10  and 
 54.11     (5) to implement the social fares as set forth in 
 54.12  subdivision 2b.  
 54.13     (b) The plan must contain a statement of the policies that 
 54.14  will govern the imposition of user charges for various types of 
 54.15  transit service and the policies that will govern decisions by 
 54.16  the council commissioner to change fare policy. 
 54.17     Sec. 77.  Minnesota Statutes 1996, section 473.408, 
 54.18  subdivision 2a, is amended to read: 
 54.19     Subd. 2a.  [REGULAR ROUTE FARES.] The council commissioner 
 54.20  shall establish and enforce uniform fare policies for regular 
 54.21  route transit in the metropolitan area.  The policies must be 
 54.22  consistent with the requirements of this section and the 
 54.23  council's transportation policy plan.  The council commissioner 
 54.24  and other operators shall charge a base fare and any surcharges 
 54.25  for peak hours and distance of service in accordance with the 
 54.26  council's commissioner's fares policies.  The council 
 54.27  commissioner shall approve all fare schedules. 
 54.28     Sec. 78.  Minnesota Statutes 1996, section 473.408, 
 54.29  subdivision 2b, is amended to read: 
 54.30     Subd. 2b.  [SOCIAL FARES.] For the purposes of raising 
 54.31  revenue for improving public safety on transit vehicles and at 
 54.32  transit hubs or stops, the council commissioner shall review and 
 54.33  may adjust its social fares as they relate to passengers under 
 54.34  the age of 18 during high crime times provided that the 
 54.35  increased revenues are dedicated to improving the safety of all 
 54.36  passengers. 
 55.1      Sec. 79.  Minnesota Statutes 1996, section 473.408, 
 55.2   subdivision 4, is amended to read: 
 55.3      Subd. 4.  [CIRCULATION FARES.] The council commissioner and 
 55.4   other operators may charge a reduced fare for service on any 
 55.5   route providing circulation service in a downtown area or 
 55.6   community activity center.  The council commissioner and other 
 55.7   operators shall not contribute more than 50 percent of the 
 55.8   operating deficit of any such route that is confined to a 
 55.9   downtown area or community activity center.  The boundaries of 
 55.10  service districts eligible for reduced fares under this 
 55.11  subdivision must be approved by the council commissioner. 
 55.12     Sec. 80.  Minnesota Statutes 1996, section 473.408, 
 55.13  subdivision 6, is amended to read: 
 55.14     Subd. 6.  [MONTHLY PASSES.] The council commissioner may 
 55.15  offer monthly passes for regular route bus service for sale to 
 55.16  the general public.  
 55.17     Sec. 81.  Minnesota Statutes 1996, section 473.408, 
 55.18  subdivision 7, is amended to read: 
 55.19     Subd. 7.  [EMPLOYEE PLAN.] The council commissioner may 
 55.20  offer monthly passes for regular route bus service for sale to 
 55.21  employers at a special discount subject to the provisions of 
 55.22  this subdivision.  An employer may be eligible to purchase 
 55.23  passes at a special discount if the employer agrees to establish 
 55.24  a payroll deduction plan as a means for its employees to 
 55.25  purchase the passes at a price at or below the amount charged by 
 55.26  the council commissioner.  The special discount on passes sold 
 55.27  pursuant to this subdivision shall be determined by the council 
 55.28  commissioner. 
 55.29     Sec. 82.  Minnesota Statutes 1996, section 473.409, is 
 55.30  amended to read: 
 55.31     473.409 [AGREEMENTS WITH COMMISSION COMMISSIONER; 
 55.32  ENCOURAGEMENT OF TRANSIT USE.] 
 55.33     A state department or agency, including the legislative 
 55.34  branch, any local governmental unit, or a metropolitan agency 
 55.35  may enter into an agreement with the council commissioner and 
 55.36  other operators for the purpose of encouraging the use of 
 56.1   transit by its employees residing in the metropolitan area.  The 
 56.2   agreement may provide for, among other things:  (a) the advance 
 56.3   purchase of tokens, tickets or other devices from the council 
 56.4   commissioner or other operator for use in lieu of fares on 
 56.5   vehicles operated by the council commissioner or other operator; 
 56.6   and (b) special transit service for employees to and from their 
 56.7   place of employment, at fares to be agreed upon by the 
 56.8   contracting parties.  The tokens, tickets, or other devices or 
 56.9   services may be made available to employees at reduced rates.  
 56.10  Any such agreement and arrangement by a state department or 
 56.11  agency shall be submitted to the commissioner of administration 
 56.12  for approval before execution.  Any operating deficits or 
 56.13  subsidy resulting from such agreements shall be assumed by the 
 56.14  contracting department, agency, governmental unit, or other 
 56.15  commission, unless otherwise provided in an agreement approved 
 56.16  by the council commissioner. 
 56.17     Sec. 83.  Minnesota Statutes 1996, section 473.411, 
 56.18  subdivision 5, is amended to read: 
 56.19     Subd. 5.  [USE OF PUBLIC ROADWAYS AND APPURTENANCES.] 
 56.20  The council commissioner may use for the purposes of sections 
 56.21  473.405 to 473.449 upon the conditions stated in this 
 56.22  subdivision any state highway or other public roadway, parkway, 
 56.23  or lane, or any bridge or tunnel or other appurtenance of a 
 56.24  roadway, without payment of any compensation, provided the use 
 56.25  does not interfere unreasonably with the public use or 
 56.26  maintenance of the roadway or appurtenance or entail any 
 56.27  substantial additional costs for maintenance.  The provisions of 
 56.28  this subdivision do not apply to the property of any common 
 56.29  carrier railroad or common carrier railroads.  The consent of 
 56.30  the public agency in charge of such state highway or other 
 56.31  public highway or roadway or appurtenance is not required; 
 56.32  except that If the council commissioner seeks to use a 
 56.33  designated parkway for regular route service in the city of 
 56.34  Minneapolis, it the commissioner must obtain permission from and 
 56.35  is subject to reasonable limitations imposed by a joint board 
 56.36  consisting of two representatives from of the council 
 57.1   commissioner, two members of the board of park commissioners, 
 57.2   and a fifth member jointly selected by the representatives of 
 57.3   the council commissioner and the park board.  
 57.4      The board of park commissioners and the council 
 57.5   commissioner may designate persons to sit on the joint board.  
 57.6   In considering a request by the council commissioner to use 
 57.7   designated parkways for additional routes or trips, the joint 
 57.8   board consisting of the council or their commissioner's 
 57.9   designees, the board of park commissioners or their designees, 
 57.10  and the fifth member, shall base its decision to grant or deny 
 57.11  the request based on the criteria to be established by the joint 
 57.12  board.  The decision to grant or deny the request must be made 
 57.13  within 45 days of the date of the request.  The park board must 
 57.14  be notified immediately by the council commissioner of any 
 57.15  temporary route detours.  If the park board objects to the 
 57.16  temporary route detours within five days of being notified, the 
 57.17  joint board must convene and decide whether to grant the 
 57.18  request, otherwise the request is deemed granted.  If the agency 
 57.19  objects to the proposed use or claims reimbursement from 
 57.20  the council commissioner for additional cost of maintenance, it 
 57.21  may commence an action against the council commissioner in the 
 57.22  district court of the county wherein the highway, roadway, or 
 57.23  appurtenance, or major portion thereof, is located.  The 
 57.24  proceedings in the action must conform to the rules of civil 
 57.25  procedure applicable to the district courts.  The court shall 
 57.26  sit without jury.  If the court determines that the use in 
 57.27  question interferes unreasonably with the public use or 
 57.28  maintenance of the roadway or appurtenance, it shall enjoin the 
 57.29  use by the council commissioner.  If the court determines that 
 57.30  the use in question does not interfere unreasonably with the 
 57.31  public use or maintenance of the roadway or appurtenance, but 
 57.32  that it entails substantial additional maintenance costs, the 
 57.33  court shall award judgment to the agency for the amount of the 
 57.34  additional costs.  Otherwise the court shall award judgment to 
 57.35  the council commissioner.  An aggrieved party may appeal from 
 57.36  the judgment of the district court in the same manner as is 
 58.1   provided for such appeals in other civil actions.  The council 
 58.2   commissioner may also use land within the right-of-way of any 
 58.3   state highway or other public roadway for the erection of 
 58.4   traffic control devices, other signs, and passenger shelters 
 58.5   upon the conditions stated in this subdivision and subject only 
 58.6   to the approval of the commissioner of transportation where 
 58.7   required by statute, and subject to the express provisions of 
 58.8   other applicable statutes and to federal requirements where 
 58.9   necessary to qualify for federal aid. 
 58.10     Sec. 84.  Minnesota Statutes 1996, section 473.415, 
 58.11  subdivision 1, is amended to read: 
 58.12     Subdivision 1.  If the council commissioner acquires an 
 58.13  existing transit system, the council commissioner shall assume 
 58.14  and observe all existing labor contracts and pension 
 58.15  obligations.  All employees of such system except executive and 
 58.16  administrative officers who are necessary for the operation 
 58.17  thereof by the council commissioner shall be transferred to and 
 58.18  appointed as employees of the council department for the 
 58.19  purposes of the transit system, subject to all the rights and 
 58.20  benefits of sections 473.405 to 473.449.  Such employees shall 
 58.21  be given seniority credit and sick leave, vacation, insurance, 
 58.22  and pension credits in accordance with the records or labor 
 58.23  agreements from the acquired transit system.  The 
 58.24  council commissioner shall assume the obligations of any transit 
 58.25  system acquired by it the department with regard to wages, 
 58.26  salaries, hours, working conditions, sick leave, health and 
 58.27  welfare and pension or retirement provisions for employees.  The 
 58.28  council commissioner and the employees, through their 
 58.29  representatives for collective bargaining purposes, shall take 
 58.30  whatever action may be necessary to have pension trust funds 
 58.31  presently under the joint control of the acquired system and the 
 58.32  participating employees through their representatives 
 58.33  transferred to the trust fund to be established, maintained and 
 58.34  administered jointly by the council state and the participating 
 58.35  employees through their representatives.  No employee of any 
 58.36  acquired system who is transferred to a position with the 
 59.1   council department shall by reason of such transfer be placed in 
 59.2   any worse position with respect to workers' compensation, 
 59.3   pension, seniority, wages, sick leave, vacation, health and 
 59.4   welfare insurance or any other benefits than the employee 
 59.5   enjoyed as an employee of such acquired system. 
 59.6      Sec. 85.  Minnesota Statutes 1996, section 473.416, is 
 59.7   amended to read: 
 59.8      473.416 [COUNCIL; TAKING OVER PERSONNEL AND CONTRACTS OF 
 59.9   TRANSIT SYSTEMS.] 
 59.10     Whenever the council department directly operates any 
 59.11  public transit system, or any part thereof, or enters into any 
 59.12  management contract or other arrangement for the operation of a 
 59.13  system, the council commissioner shall take the action necessary 
 59.14  to extend to employees of the affected public transit systems, 
 59.15  in accordance with seniority, the first opportunity for 
 59.16  reasonably comparable employment in any available nonsupervisory 
 59.17  jobs in respect to such operations for which they can qualify 
 59.18  after a reasonable training period.  The employment must not 
 59.19  result in any worsening of the employee's position in the 
 59.20  employee's former employment nor any loss of wages, hours, 
 59.21  working conditions, seniority, fringe benefits, and rights and 
 59.22  privileges pertaining thereto.  The council commissioner may 
 59.23  enter into an agreement specifying fair and equitable 
 59.24  arrangements to protect the interests of employees who may be 
 59.25  affected if the council commissioner should acquire any interest 
 59.26  in or purchase any facilities or other property of a privately 
 59.27  owned and operated transit system, or construct, improve, or 
 59.28  reconstruct any facilities or other property acquired from any 
 59.29  system, or provide by contract or otherwise for the operation of 
 59.30  transportation facilities or equipment in competition with, or 
 59.31  supplementary to, the service provided by an existing transit 
 59.32  system.  The agreement, specifying the terms and conditions of 
 59.33  the protective arrangements, must comply with any applicable 
 59.34  requirements of this chapter, and with the requirements of any 
 59.35  federal law or regulation if federal aid is involved.  The 
 59.36  agreement may provide for final and binding arbitration of any 
 60.1   dispute.  
 60.2      Sec. 86.  Minnesota Statutes 1996, section 473.42, is 
 60.3   amended to read: 
 60.4      473.42 [EMPLOYER CONTRIBUTIONS FOR CERTAIN EMPLOYEES.] 
 60.5      Notwithstanding any contrary provisions of section 352.029, 
 60.6   the council state shall make the employer contributions required 
 60.7   pursuant to section 352.04, subdivision 3, for any employee who 
 60.8   was on authorized leave of absence from the transit operating 
 60.9   division of the former metropolitan transit commission who is 
 60.10  employed by the labor organization which is the exclusive 
 60.11  bargaining agent representing employees of the office of transit 
 60.12  operations and who is covered by the Minnesota state retirement 
 60.13  system in addition to all other employer contributions the 
 60.14  council state is required to make. 
 60.15     Sec. 87.  Minnesota Statutes 1996, section 473.448, is 
 60.16  amended to read: 
 60.17     473.448 [TRANSIT ASSETS EXEMPT FROM TAX BUT MUST PAY 
 60.18  ASSESSMENTS.] 
 60.19     (a) Notwithstanding any other provision of law to the 
 60.20  contrary, the properties, moneys, and other assets of the 
 60.21  council department of transportation used for transit operations 
 60.22  in the metropolitan area or for special transportation 
 60.23  services in the metropolitan area and all revenues or other 
 60.24  income from the council's department's transit operations in the 
 60.25  metropolitan area or special transportation services in the 
 60.26  metropolitan area are exempt from all taxation, licenses, or 
 60.27  fees imposed by the state or by any county, municipality, 
 60.28  political subdivision, taxing district, or other public agency 
 60.29  or body of the state. 
 60.30     (b) Notwithstanding paragraph (a), the council's 
 60.31  department's transit properties are subject to special 
 60.32  assessments levied by a political subdivision for a local 
 60.33  improvement in amounts proportionate to and not exceeding the 
 60.34  special benefit received by the properties from the improvement. 
 60.35     Sec. 88.  Minnesota Statutes 1996, section 473.449, is 
 60.36  amended to read: 
 61.1      473.449 [ACT EXCLUSIVE.] 
 61.2      The exercise by the council commissioner of the powers 
 61.3   provided in sections 473.405 to 473.449 shall not be subject to 
 61.4   regulation by or the jurisdiction or control of any other public 
 61.5   body or agency, either state, county, or municipal, except as 
 61.6   specifically provided in this chapter. 
 61.7      Sec. 89.  [BONDS.] 
 61.8      Bonds and other debt authorized by Minnesota Statutes, 
 61.9   sections 473.39 and 473.436 that are outstanding on the 
 61.10  effective date of this act must be paid and retired according to 
 61.11  those sections, Minnesota Statutes, section 473.446, and the 
 61.12  terms of the bonds or other debt instruments.  The auditors of 
 61.13  the metropolitan counties shall see to the administration of 
 61.14  this section. 
 61.15     Sec. 90.  [TRANSFER PROVISIONS.] 
 61.16     Subdivision 1.  [GENERAL.] The metropolitan council's 
 61.17  powers and duties related to transit financing, coordination, 
 61.18  and operation are transferred to the commissioner of 
 61.19  transportation.  Minnesota Statutes, section 15.039 applies to 
 61.20  the transfer of the council's powers and duties to the 
 61.21  commissioner to the extent practicable. 
 61.22     Subd. 2.  [LEGISLATIVE PROPOSAL.] (a) The commissioner of 
 61.23  transportation shall prepare and submit to the legislature by 
 61.24  February 1, 1999, proposed legislation to integrate the 
 61.25  department's metropolitan area transit powers and duties with 
 61.26  its other transportation powers and duties. 
 61.27     (b) The proposal must include the following elements:  
 61.28     (1) the metropolitan council transit operations will become 
 61.29  MnDOT transit division (MTD); 
 61.30     (2) a dedicated fund adequate for MTD transit operations be 
 61.31  established separate from road and bridge and other 
 61.32  transportation department funds; 
 61.33     (3) MTD must fully prorate and advertise publicly-owned and 
 61.34  operated transit for the metropolitan area; 
 61.35     (4) MTD will continue to operate and maintain regional 
 61.36  fleet buses and routes with a process set up to transfer 
 62.1   ownership of the regional fleet buses to MTD; 
 62.2      (5) MCTO Union Local 1005 employees who were absorbed into 
 62.3   metropolitan council headquarters be given an opportunity to 
 62.4   transfer to the new MTD by a process in the legislative 
 62.5   proposal; 
 62.6      (6) MCTO Union Local 1005 employees at the time of the 
 62.7   transfer from MCTO to MDT be transferred to MTD and that the 
 62.8   collective bargaining agreement in effect for Transit Union 
 62.9   Local 1005 at the time of the transfer continue in effect 
 62.10  unchanged; and 
 62.11     (7) so-called opt-out and similar transit services that use 
 62.12  MTD fare boxes, radio system, transit supervision, police, 
 62.13  security, maintenance, mechanical, and other services may 
 62.14  continue to do so if a fee is paid to MDT for the reasonable 
 62.15  value of the services. 
 62.16     Sec. 91.  [APPROPRIATION.] 
 62.17     $....... is appropriated from the general fund to the 
 62.18  commissioner of transportation for the biennium ending June 30, 
 62.19  1999, for the purposes of this act. 
 62.20     Sec. 92.  [REPEALER.] 
 62.21     Minnesota Statutes 1996, sections 174.22, subdivision 3; 
 62.22  221.295; 473.166; 473.167, subdivisions 3, 3a, and 4; 473.388, 
 62.23  subdivisions 1, 2, 3, 4, and 5; 473.39, subdivisions 1, 1a, 1b, 
 62.24  2, and 4; 473.3915, subdivisions 5 and 6; 473.3994, subdivisions 
 62.25  4, 7, and 13; 473.411, subdivisions 3 and 4; 473.436, 
 62.26  subdivisions 2, 3, and 6; and 473.446, are repealed. 
 62.27     Sec. 93.  [APPLICATION.] 
 62.28     Sections 1 to 89 apply in the counties of Anoka, Carver, 
 62.29  Dakota, Hennepin, Ramsey, Scott, and Washington. 
 62.30     Sec. 94.  [EFFECTIVE DATE.] 
 62.31     This act is effective July 1, 1998.