1.1 	A bill for an act
1.2 	relating to transportation appropriations; appropriating money for transportation, 
1.3 	Metropolitan Council, and public safety activities and programs; authorizing sale 
1.4 	of trunk highway bonds; authorizing sale of Metropolitan Council obligations 
1.5 	for transit; providing for fund transfers, contingent appropriations, and tort 
1.6 	claims; providing for various fees and accounts; modifying or adding provisions 
1.7 	relating to an airport funding advisory task force, various transit activities 
1.8 	and programs, sales tax exemptions, motor vehicle lease tax and sales tax 
1.9 	distributions, a transportation endowment fund, distribution of discretionary 
1.10 	highway user tax proceeds, tax proceeds exceeding budgetary general fund 
1.11 	balance, highway construction training, the disadvantaged business enterprise 
1.12 	program, special transportation, major highway project reports, the Metropolitan 
1.13 	Transit Police, and the transit taxing district; requiring commuter rail station 
1.14 	in Fridley; removing 1999 restriction on construction of certain light rail 
1.15 	transit facilities, and a 2001 restriction on the transit tax levy authority of the 
1.16 	Metropolitan Council; making technical and clarifying changes;amending 
1.17 	Minnesota Statutes 2006, sections 16A.1522, subdivision 1; 16A.88; 53C.01, 
1.18 	subdivision 2; 161.081; 168.017, subdivision 3; 168.12, subdivision 5; 168.1255, 
1.19 	by adding a subdivision; 168A.29, subdivision 1; 171.02, subdivision 3; 171.06, 
1.20 	subdivision 2; 171.07, subdivisions 3a, 11; 171.20, subdivision 4; 174.03, by 
1.21 	adding subdivisions; 297A.70, subdivision 2; 297A.71, by adding a subdivision; 
1.22 	297A.815, subdivision 1, by adding subdivisions; 297A.94; 297B.01, subdivision 
1.23 	8; 297B.09, subdivision 1; 299D.09; 473.1466; 473.166; 473.386, subdivisions 
1.24 	1, 2, 2a, 3; 473.388, subdivision 4; 473.39, by adding a subdivision; 473.399; 
1.25 	473.3993, subdivision 3; 473.3994; 473.3997; 473.4051; 473.407, subdivision 
1.26 	1; 473.446, subdivisions 2, 8; 609.531, subdivision 1; proposing coding for 
1.27 	new law in Minnesota Statutes, chapters 160; 174; 473; repealing Minnesota 
1.28 	Statutes 2006, sections 174.32; 473.123, subdivision 3d; 473.1465; 473.4461; 
1.29 	Laws 1999, chapter 230, section 44.
1.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.31 	ARTICLE 1
1.32 	TRANSPORTATION APPROPRIATIONS

1.33	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
2.1 	The amounts shown in this section summarize direct appropriations, by fund, made 
2.2 	in this article.

2.3			2008
		2009
		Total
	
2.4	General
	$
	129,748,000
	$
	104,498,000
	$
	234,246,000
	
2.5	Airports
		25,474,000
		25,542,000
		51,016,000
	
2.6	C.S.A.H.
		430,045,000
		447,941,000
		877,986,000
	
2.7	M.S.A.S.
		116,093,000
		120,911,000
		237,004,000
	
2.8	Special Revenue
		46,660,000
		47,704,000
		94,364,000
	
2.9	Highway User
		8,813,000
		9,113,000
		17,926,000
	
2.10	Trunk Highway
		1,137,547,000
		1,158,218,000
		2,295,765,000
	
2.11	Total
	$
	1,894,380,000
	$
	1,913,927,000
	$
	3,808,307,000

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

2.21				APPROPRIATIONS
	
2.22				Available for the Year
	
2.23				Ending June 30
	
2.24					2008
		2009

2.25	Sec. 3. TRANSPORTATION

2.26	Subdivision 1. Total Appropriation
 	$
	1,672,974,000
	$
	1,686,686,000
	
2.27 	The appropriations in this section are from 
2.28 	the trunk highway fund, except when another 
2.29 	fund is named.

2.30	Appropriations by Fund
	
2.31		2008
	2009
	
2.32	General
	44,730,000
	19,239,000
	
2.33	Airports
	25,474,000
	25,542,000
	
2.34	C.S.A.H.
	430,045,000
	447,941,000
	
2.35	M.S.A.S.
	116,093,000
	120,911,000
	
2.36	Trunk Highway
	1,056,632,000
	1,073,053,000
	
3.1 	The amounts that may be spent for each 
3.2 	purpose are specified in the following 
3.3 	subdivisions.

3.4	Subd.  2.Multimodal Systems

3.5	(a) Aeronautics

3.6	(1) Airport Development and Assistance
		20,298,000
		20,298,000
	
3.7 	This appropriation is from the state 
3.8 	airports fund and must be spent according 
3.9 	to Minnesota Statutes, section 360.305, 
3.10 	subdivision 4.
3.11 	Of this appropriation $200,000 the first 
3.12 	year is to the Legislative Coordinating 
3.13 	Commission for the administrative expenses 
3.14 	of the Airport Funding Advisory Task Force 
3.15 	and for other costs relating to the preparation 
3.16 	of the task force report, including the costs of 
3.17 	hiring a consultant, if needed. Any remaining 
3.18 	amount of this appropriation shall revert to 
3.19 	the state airports fund.
3.20 	Notwithstanding Minnesota Statutes, section 
3.21 	16A.28, subdivision 6, this appropriation is 
3.22 	available for five years after appropriation.
3.23 	If the appropriation for either year is 
3.24 	insufficient, the appropriation for the other 
3.25 	year is available for it.

3.26	(2) Aviation Support and Services

3.27	Appropriations by Fund
	
3.28	Airports
	5,151,000
	5,219,000
	
3.29	Trunk Highway
	847,000
	856,000
	
3.30 	$65,000 the first year and $65,000 the second 
3.31 	year are for the Civil Air Patrol.

3.32	(b) Transit

4.1	Appropriations by Fund
	
4.2	General
	18,812,000
	18,814,000
	
4.3	Trunk Highway
	733,000
	747,000
	
4.4 	The commissioner of transportation may 
4.5 	spend up to $5,000,000 from July 1, 2008, 
4.6 	through June 30, 2013, in federal transit 
4.7 	funds for capital assistance to public transit 
4.8 	systems under Minnesota Statutes, section 
4.9 	174.24. This amount is in addition to any 
4.10 	appropriations made by law for this purpose.

4.11	(c) Freight

4.12	Appropriations by Fund
	
4.13	General
	353,000
	360,000
	
4.14	Trunk Highway
	 4,984,000
	5,071,000

4.15	(d) Ports
					
4.16 	$5,500,000 is for the port development 
4.17 	assistance program under Minnesota 
4.18 	Statutes, chapter 457A. Of this appropriation, 
4.19 	$500,000 is for the purchase of dredging 
4.20 	equipment. This appropriation is onetime 
4.21 	and is available until spent.

4.22	Subd.  3.State Roads

4.23	(a) Infrastructure Investment and Planning

4.24	(1) Infrastructure Investment Support
		170,445,000 
		173,248,000 
	
4.25 	$266,000 the first year and $266,000 the 
4.26 	second year are available for grants to 
4.27 	metropolitan planning organizations outside 
4.28 	the seven-county metropolitan area.
4.29 	$75,000 the first year and $75,000 the 
4.30 	second year are for a transportation research 
4.31 	contingent account to finance research 
4.32 	projects that are reimbursable from the 
4.33 	federal government or from other sources. 
4.34 	If the appropriation for either year is 
5.1 	insufficient, the appropriation for the other 
5.2 	year is available for it.
5.3 	$600,000 the first year and $600,000 
5.4 	the second year are available for grants 
5.5 	for transportation studies outside the 
5.6 	metropolitan area to identify critical 
5.7 	concerns, problems, and issues. These grants 
5.8 	are available (1) to regional development 
5.9 	commissions and (2) in regions where 
5.10 	no regional development commission 
5.11 	is functioning, to joint powers boards 
5.12 	established under agreement of two or 
5.13 	more political subdivisions in the region to 
5.14 	exercise the planning functions of a regional 
5.15 	development commission, and (3) in regions 
5.16 	where no regional development commission 
5.17 	or joint powers board is functioning, to the 
5.18 	department's district office for that region.

5.19	(2) State Road Construction
		552,770,000
		555,923,000
	
5.20 	It is estimated that these appropriations will 
5.21 	be funded as follows:

5.22	Appropriations by Fund
	
5.23
5.24	Federal Highway 
Aid
	193,463,000 
	350,442,000
	
5.25	Highway User Taxes
	359,307,000
	205,481,000
	
5.26 	The commissioner of transportation shall 
5.27 	notify the chair of the Transportation Budget 
5.28 	Division of the senate and the chair of the 
5.29 	Transportation Finance Committee of the 
5.30 	house of representatives of any significant 
5.31 	events that should cause these estimates to 
5.32 	change.
5.33 	This appropriation is for the actual 
5.34 	construction, reconstruction, and 
5.35 	improvement of trunk highways, including 
6.1 	design-build contracts and consultant usage 
6.2 	to support these activities. This includes the 
6.3 	cost of actual payment to landowners for 
6.4 	lands acquired for highway rights-of-way, 
6.5 	payment to lessees, interest subsidies, and 
6.6 	relocation expenses.
6.7 	The commissioner may transfer up to 
6.8 	$15,000,000 each year to the transportation 
6.9 	revolving loan fund.
6.10 	The commissioner may receive money 
6.11 	covering other shares of the cost of 
6.12 	partnership projects. These receipts are 
6.13 	appropriated to the commissioner for these 
6.14 	projects.

6.15	(3) Highway Debt Service
		56,699,000
		63,706,000
	
6.16 	$53,039,000 the first year and $53,354,000 
6.17 	the second year are for transfer to the state 
6.18 	bond fund. If this appropriation is insufficient 
6.19 	to make all transfers required in the year for 
6.20 	which it is made, the commissioner of finance 
6.21 	shall notify the Committee on Finance of 
6.22 	the senate and the Committee on Ways and 
6.23 	Means of the house of representatives of 
6.24 	the amount of the deficiency and shall then 
6.25 	transfer that amount under the statutory open 
6.26 	appropriation. Any excess appropriation 
6.27 	cancels to the trunk highway fund.

6.28	(b) Infrastructure Operations and Maintenance
		208,297,000 
		210,987,000 

6.29	(c) Electronic Communications

6.30	Appropriations by Fund
	
6.31	General
	 9,000
	 9,000
	
6.32	Trunk Highway
	6,018,000
	6,103,000
	
7.1 	The general fund appropriation is to equip 
7.2 	and operate the Roosevelt signal tower for 
7.3 	Lake of the Woods weather broadcasting.

7.4	Subd.  4.Local Roads  

7.5	(a) County State Aids
		430,045,000
		447,941,000
	
7.6 	This appropriation is from the county 
7.7 	state-aid highway fund and is available until 
7.8 	spent.

7.9	(b) Municipal State Aids
		116,093,000
		120,911,000
	
7.10 	This appropriation is from the municipal 
7.11 	state-aid street fund and is available until 
7.12 	spent.
7.13 	If an appropriation for either county state 
7.14 	aids or municipal state aids does not exhaust 
7.15 	the balance in the fund from which it is 
7.16 	made in the year for which it is made, the 
7.17 	commissioner of finance, upon request of 
7.18 	the commissioner of transportation, shall 
7.19 	notify the chair of the Transportation Finance 
7.20 	Committee of the house of representatives 
7.21 	and the chair of the Transportation Budget 
7.22 	Division of the senate of the amount of the 
7.23 	remainder and shall then add that amount 
7.24 	to the appropriation. The amount added is 
7.25 	appropriated for the purposes of county state 
7.26 	aids or municipal state aids, as appropriate.
7.27 	If the appropriation for either county state 
7.28 	aids or municipal state aids does exhaust 
7.29 	the balance in the fund from which it is 
7.30 	made in the year for which it is made, 
7.31 	the commissioner of finance shall notify 
7.32 	the chair of the Transportation Finance 
7.33 	Committee of the house of representatives 
7.34 	and the chair of the Transportation Budget 
8.1 	Division of the senate of the amount by 
8.2 	which the appropriation exceeds the balance 
8.3 	and shall then reduce that amount from the 
8.4 	appropriation.

8.5	Subd.  5.General Support and Services 

8.6	(a) Department Support

8.7	Appropriations by Fund
	
8.8	Airports
	25,000
	25,000
	
8.9	Trunk Highway
	39,263,000
	39,794,000

8.10	(b) Buildings

8.11	Appropriations by Fund
	
8.12	General
	56,000
	56,000
	
8.13	Trunk Highway
	16,576,000
	16,618,000
	
8.14 	If the appropriation for either year is 
8.15 	insufficient, the appropriation for the other 
8.16 	year is available for it.

8.17
8.18	Subd.  6.Town Road Sign Replacement 
Program
 					
8.19 	$5,000,000 is appropriated from the general 
8.20 	fund to the commissioner of transportation to 
8.21 	implement the town road sign replacement 
8.22 	program established in Laws 2005, First 
8.23 	Special Session chapter 6, article 3, section 
8.24 	89. For the purpose of this appropriation, 
8.25 	implementation includes the purchase and 
8.26 	installation of new signs. This appropriation 
8.27 	may be used to satisfy any local matching 
8.28 	requirement for the receipt of federal funds. 
8.29 	Designated funds not allocated by July 1, 
8.30 	2009, cancel and revert to the general fund.

8.31	Subd.  7.Transfers
 					
8.32 	(a) With the approval of the commissioner of 
8.33 	finance, the commissioner of transportation 
8.34 	may transfer unencumbered balances among 
9.1 	the appropriations from the trunk highway 
9.2 	fund and the state airports fund made in this 
9.3 	section. No transfer may be made from the 
9.4 	appropriation for state road construction. No 
9.5 	transfer may be made from the appropriations 
9.6 	for debt service to any other appropriation. 
9.7 	Transfers under this paragraph may not be 
9.8 	made between funds. Transfers between 
9.9 	programs must be reported immediately 
9.10 	to the chair of the Transportation Budget 
9.11 	Division of the senate and the chair of the 
9.12 	Transportation Finance Committee of the 
9.13 	house of representatives.
9.14 	(b) The commissioner of finance shall 
9.15 	transfer from the flexible account in the 
9.16 	county state-aid highway fund $5,950,000 
9.17 	the first year and $2,820,000 the second 
9.18 	year to the municipal turnback account 
9.19 	in the municipal state-aid street fund and 
9.20 	$12,940,000 the first year and $15,330,000 
9.21 	the second year to the trunk highway fund; 
9.22 	and the remainder in each year to the county 
9.23 	turnback account in the county state-aid 
9.24 	highway fund.

9.25
9.26	Subd.  8.Use of State Road Construction 
Appropriations
 					
9.27 	Any money appropriated to the commissioner 
9.28 	of transportation for state road construction 
9.29 	for any fiscal year before fiscal year 2008 is 
9.30 	available to the commissioner during fiscal 
9.31 	years 2008 and 2009 to the extent that the 
9.32 	commissioner spends the money on the 
9.33 	state road construction project for which the 
9.34 	money was originally encumbered during the 
9.35 	fiscal year for which it was appropriated. The 
9.36 	commissioner of transportation shall report 
10.1 	to the commissioner of finance by August 
10.2 	1, 2007, and August 1, 2008, on a form 
10.3 	the commissioner of finance provides, on 
10.4 	expenditures made during the previous fiscal 
10.5 	year that are authorized by this subdivision.

10.6	Subd.  9.Contingent Appropriation
 					
10.7 	The commissioner of transportation, with 
10.8 	the approval of the governor and the written 
10.9 	approval of at least five members of a 
10.10 	group consisting of the members of the 
10.11 	Legislative Advisory Commission under 
10.12 	Minnesota Statutes, section 3.30, and the 
10.13 	ranking minority members of the house of 
10.14 	representatives and senate committees with 
10.15 	jurisdiction over transportation finance, may 
10.16 	transfer all or part of the unappropriated 
10.17 	balance in the trunk highway fund to an 
10.18 	appropriation (1) for trunk highway design, 
10.19 	construction, or inspection in order to 
10.20 	take advantage of an unanticipated receipt 
10.21 	of income to the trunk highway fund or 
10.22 	to take advantage of federal advanced 
10.23 	construction funding, (2) for trunk highway 
10.24 	maintenance in order to meet an emergency, 
10.25 	or (3) to pay tort or environmental claims. 
10.26 	Nothing in this subdivision authorizes the 
10.27 	commissioner to increase the use of federal 
10.28 	advanced construction funding beyond 
10.29 	amounts specifically authorized. Any 
10.30 	transfer as a result of the use of federal 
10.31 	advanced construction funding must include 
10.32 	an analysis of the effects on the long-term 
10.33 	trunk highway fund balance. The amount 
10.34 	transferred is appropriated for the purpose of 
10.35 	the account to which it is transferred.

11.1	Sec. 4. METROPOLITAN COUNCIL 

11.2	Subdivision 1. Total Appropriation
 	$
	78,753,000
	$
	78,753,000
	
11.3 	The amounts that may be spent for each 
11.4 	purpose are specified in the following 
11.5 	subdivisions.

11.6	Subd.  2.Bus Transit
 		73,453,000
		73,453,000
	
11.7 	This appropriation is for bus system 
11.8 	operations.

11.9	Subd.  3.Rail Operations
 		5,300,000
		5,300,000
	
11.10 	This appropriation is for operations of the 
11.11 	Hiawatha light rail transit line.
11.12 	This appropriation is for paying 50 percent 
11.13 	of operating costs for the Hiawatha light 
11.14 	rail transit line after operating revenue and 
11.15 	federal funds are used for light rail transit 
11.16 	operations. The remaining operating costs 
11.17 	up to a maximum of $5,300,000 the first year 
11.18 	and $5,300,000 the second year are to be 
11.19 	paid by the Hennepin County Regional Rail 
11.20 	Authority, using any or all of these sources:
11.21 	(1) general tax revenues of Hennepin County;
11.22 	(2) the authority's reserves; and
11.23 	(3) taxes levied under Minnesota 
11.24 	Statutes, section 398A.04, subdivision 
11.25 	8, notwithstanding any provision in that 
11.26 	subdivision that limits amounts that may be 
11.27 	levied for light rail transit purposes.

11.28	Sec. 5. PUBLIC SAFETY

11.29	Subdivision 1. Total Appropriation
 	$
	142,653,000 
	$
	148,488,000

11.30	Appropriations by Fund
	
11.31		2008
	2009
	
11.32	General
	6,265,000 
	6,506,000
	
11.33	Trunk Highway
	80,915,000
	85,165,000
	
12.1	Highway User
	8,813,000
	9,113,000
	
12.2	Special Revenue 
	 46,660,000
	47,704,000
	
12.3 	The amounts that may be spent for each 
12.4 	purpose are specified in the following 
12.5 	subdivisions.

12.6	Subd.  2.Administration and Related Services 

12.7	(a) Office of Communications

12.8	Appropriations by Fund
	
12.9	General
	39,000
	40,000
	
12.10	Trunk Highway
	363,000 
	377,000 

12.11	(b) Public Safety Support

12.12	Appropriations by Fund
	
12.13	General
	3,135,000
	3,308,000
	
12.14	Trunk Highway
	3,331,000
	3,420,000
	
12.15	Highway User 
	1,366,000
	1,366,000
	
12.16 	$380,000 the first year and $380,000 the 
12.17 	second year are for payment of public 
12.18 	safety officer survivor benefits under 
12.19 	Minnesota Statutes, section 299A.44. If the 
12.20 	appropriation for either year is insufficient, 
12.21 	the appropriation for the other year is 
12.22 	available for it.
12.23 	$1,199,000 the first year and $1,367,000 
12.24 	the second year are to be deposited in the 
12.25 	public safety officer's benefit account. This 
12.26 	money is available for reimbursements under 
12.27 	Minnesota Statutes, section 299A.465.
12.28 	$508,000 the first year and $508,000 
12.29 	the second year are for soft body armor 
12.30 	reimbursements under Minnesota Statutes, 
12.31 	section 299A.38.
12.32 	$792,000 the first year and $792,000 
12.33 	the second year are appropriated from the 
12.34 	general fund for transfer by the commissioner 
13.1 	of finance to the trunk highway fund on 
13.2 	December 31, 2007, and December 31, 2008, 
13.3 	respectively, in order to reimburse the trunk 
13.4 	highway fund for expenses not related to the 
13.5 	fund. These represent amounts appropriated 
13.6 	out of the trunk highway fund for general 
13.7 	fund purposes in the administration and 
13.8 	related services program.
13.9 	$610,000 the first year and $610,000 the 
13.10 	second year are appropriated from the 
13.11 	highway user tax distribution fund for 
13.12 	transfer by the commissioner of finance to 
13.13 	the trunk highway fund on December 31, 
13.14 	2007, and December 31, 2008, respectively, 
13.15 	in order to reimburse the trunk highway 
13.16 	fund for expenses not related to the fund. 
13.17 	These represent amounts appropriated out 
13.18 	of the trunk highway fund for highway 
13.19 	user tax distribution fund purposes in the 
13.20 	administration and related services program.
13.21 	$716,000 the first year and $716,000 the 
13.22 	second year are appropriated from the 
13.23 	highway user tax distribution fund for 
13.24 	transfer by the commissioner of finance to 
13.25 	the general fund on December 31, 2007, and 
13.26 	December 31, 2008, respectively, in order to 
13.27 	reimburse the general fund for expenses not 
13.28 	related to the fund. These represent amounts 
13.29 	appropriated out of the general fund for 
13.30 	operation of the criminal justice data network 
13.31 	related to driver and motor vehicle licensing.

13.32	(c) Technical Support Services

13.33	Appropriations by Fund
	
13.34	General
	91,000
	91,000
	
13.35	Trunk Highway
	2,344,000
	2,344,000
	
13.36	Highway User 
	19,000
	19,000

14.1	Subd.  3.State Patrol

14.2	(a) Patrolling Highways

14.3	Appropriations by Fund
	
14.4	General
	37,000
	37,000
	
14.5	Trunk Highway
	67,695,000
	71,591,000
	
14.6	Highway User 
	92,000
	92,000
	
14.7 	$2,060,000 the first year and $3,653,000 the 
14.8 	second year are for the cost of adding 40 
14.9 	state troopers.
14.10 	$1,335,000 the first year and $1,335,000 the 
14.11 	second year are to cover increased fuel costs.

14.12	(b) Commercial Vehicle Enforcement
		6,747,000
		6,998,000
	
14.13 	This appropriation is from the trunk highway 
14.14 	fund.

14.15	(c) Capitol Security
		2,963,000 
		3,030,000 
	
14.16 	The commissioner may not (1) spend 
14.17 	any money from the trunk highway fund 
14.18 	for capitol security or (2) permanently 
14.19 	transfer any state trooper from the patrolling 
14.20 	highways activity to capitol security.
14.21 	The commissioner may not transfer any 
14.22 	money (1) appropriated for Department of 
14.23 	Public Safety administration, the patrolling of 
14.24 	highways, commercial vehicle enforcement, 
14.25 	or driver and vehicle services to capitol 
14.26 	security or (2) from capitol security.

14.27	Subd.  4.Driver and Vehicle Services

14.28	(a) Vehicle Services

14.29	Appropriations by Fund
	
14.30	Highway User 
	7,336,000
	7,636,000
	
14.31	Special Revenue
	18,649,000 
	18,928,000
	
14.32 	The base appropriation from the highway 
14.33 	user tax distribution fund is $7,936,000 for 
15.1 	fiscal year 2010 and $8,236,000 for fiscal 
15.2 	year 2011.
15.3 	The special revenue fund appropriation is 
15.4 	from the vehicle services operating account.

15.5	(b) Driver Services

15.6	Appropriations by Fund
	
15.7	Special Revenue
	26,753,000
	27,527,000
	
15.8	Trunk Highway
	1,000
	1,000
	
15.9 	The special revenue fund appropriation is 
15.10 	from the driver services operating account.

15.11	Subd.  5.Traffic Safety
 		435,000 
		435,000 
	
15.12 	This appropriation is from the trunk highway 
15.13 	fund.
15.14 	The commissioner of public safety shall 
15.15 	spend 50 percent of the money available 
15.16 	to the state under Public Law 105-206, 
15.17 	section 164, and the remaining 50 percent 
15.18 	must be transferred to the commissioner 
15.19 	of transportation for hazard elimination 
15.20 	activities under United States Code, title 23, 
15.21 	section 152.

15.22	Subd.  6.Pipeline Safety
 		 1,258,000
		1,249,000
	
15.23 	This appropriation is from the pipeline safety 
15.24 	account in the special revenue fund.

15.25
15.26	Sec. 6. GENERAL CONTINGENT 
ACCOUNTS
 	$
	375,000
	$
	375,000

15.27	Appropriations by Fund
	
15.28	Trunk Highway
	200,000
	200,000
	
15.29	Highway User 
	125,000 
	125,000 
	
15.30	Airports
	50,000
	50,000
	
15.31 	The appropriations in this section may 
15.32 	only be spent with the approval of the 
15.33 	governor and the written approval of at 
15.34 	least five members of a group consisting of 
16.1 	the members of the Legislative Advisory 
16.2 	Commission under Minnesota Statutes, 
16.3 	section 3.30, and the ranking minority 
16.4 	members of the house of representatives and 
16.5 	senate committees with jurisdiction over 
16.6 	transportation finance.
16.7 	If an appropriation in this section for either 
16.8 	year is insufficient, the appropriation for the 
16.9 	other year is available for it.

16.10	Sec. 7. TORT CLAIMS
 	$
	600,000
	$
	600,000
	
16.11 	To be spent by the commissioner of finance.
16.12 	This appropriation is from the trunk highway 
16.13 	fund.
16.14 	If the appropriation for either year is 
16.15 	insufficient, the appropriation for the other 
16.16 	year is available for it.

16.17 	Sec. 8. LAFAYETTE BRIDGE.
 16.18 	The commissioner of transportation shall ensure that any reconstruction or 
16.19 	improvement of the Lafayette Bridge segment of U.S. Highway 52 is compatible with the 
16.20 	possibility of future implementation of transit, including light rail transit, on the bridge.

16.21 	Sec. 9. AIRPORT FUNDING ADVISORY TASK FORCE.
 16.22 		Subdivision 1.Task force established. The Airport Funding Advisory Task Force is 
16.23 	established to study and make recommendations regarding the best methods for funding 
16.24 	airports in the state and the state airports fund. The task force shall study:
16.25 	(1) the adequacy of current sources of revenue for the state airports fund and airports 
16.26 	in the state;
16.27 	(2) policy considerations regarding the use of the sales tax on aircraft as a potential 
16.28 	source of revenue for airports;
16.29 	(3) how other states fund airports;
16.30 	(4) projected aviation needs of the future, including required investments in aviation 
16.31 	infrastructure;
16.32 	(5) aircraft registration taxes; and
17.1 	(6) other issues relating to the funding of airports as determined by the task force.
17.2 		Subd. 2.Membership. (a) The task force is comprised of the following members:
17.3 	(1) three members of the senate, including at least one member from the minority 
17.4 	party, appointed by the Subcommittee on Committees of the Committee on Rules and 
17.5 	Administration of the senate; and
17.6 	(2) three members of the house of representatives, two appointed by the speaker of 
17.7 	the house and one appointed by the minority leader.
17.8 	The appointing authorities must select members based on knowledge and experience in 
17.9 	aviation funding issues. All appointments required by this paragraph must be completed 
17.10 	by September 1, 2007.
17.11 	(b) The chair of the task force may appoint additional nonvoting members to the task 
17.12 	force, including, but not limited to, representatives of the following organizations:
17.13 	(1) the Department of Transportation Aeronautics Office;
17.14 	(2) the Aircraft Owners and Pilots Association;
17.15 	(3) the Experimental Aircraft Association/ACAA;
17.16 	(4) the Metropolitan Airports Commission;
17.17 	(5) the Minnesota Aviation Trades Association;
17.18 	(6) the Minnesota Business Aviation Association;
17.19 	(7) the Minnesota Council of Airports;
17.20 	(8) the Minnesota Seaplane Pilots Association; 
17.21 	(9) the National Business Aviation Association; and 
17.22 	(10) the Minnesota Wing, Civil Air Patrol.
17.23 	(c) The director of the aeronautics office in the Department of Transportation shall 
17.24 	convene the first meeting of the task force within two weeks after the legislative members 
17.25 	have been appointed to the task force. The members shall elect a chairperson from their 
17.26 	membership at the first meeting.
17.27 		Subd. 3.Report. By February 15, 2008, the task force shall report its 
17.28 	recommendations to the chairs of the legislative committees with jurisdiction over airports 
17.29 	and aviation issues and to the legislature as required by Minnesota Statutes, section 3.195. 
17.30 		Subd. 4.Expenses. Per diem and expenses for members of the task force are as 
17.31 	provided for under Minnesota Statutes, section 15.059.
17.32 		Subd. 5.Expiration. This section expires after the submission of the report as 
17.33 	required under subdivision 3.

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

18.2 	Sec. 10. HIGHWAY CONSTRUCTION IN ROCHESTER.
 18.3 	The commissioner of transportation shall proceed without delay to issue to the city 
18.4 	of Rochester the necessary permits that allow the city to complete the construction of a 
18.5 	new folded diamond interchange in the Northeast and Northwest quadrants at marked 
18.6 	Trunk Highway 52 and 65th Street NW in the city of Rochester. The commissioner shall 
18.7 	review the environmental documentation prepared by the city in a timely manner and shall 
18.8 	issue the necessary construction permits without delay upon the issuance of a finding of 
18.9 	no significant impact. The cost of the interchange design, right-of-way acquisition, and 
18.10 	construction is the responsibility of the city of Rochester.

18.11 	ARTICLE 2
18.12 	MOTOR VEHICLE SALES TAX, MOTOR VEHICLE LEASE SALES TAX

18.13 	Section 1. Minnesota Statutes 2006, section 16A.88, is amended to read:
18.14 	16A.88 TRANSIT FUNDS ASSISTANCE FUND.
18.15 		Subdivision 1.Transit assistance fund established. A transit assistance fund is 
18.16 	established within the state treasury. The fund receives money distributed under sections 
18.17 	297A.815, subdivision 3, and 297B.09, subdivision 1, and other money as specified by 
18.18 	law. Money in the fund must be allocated to the greater Minnesota transit account under 
18.19 	subdivision 1a and the metropolitan area transit account under subdivision 2 in the manner 
18.20 	specified in sections 297A.815, subdivision 3, and 297B.09, subdivision 1, and must be 
18.21 	used for transit purposes.
18.22 		Subd. 1a.Greater Minnesota transit fund account. The greater Minnesota transit 
18.23 	fund account is established within the transit assistance fund in the state treasury. Money 
18.24 	in the fund account is annually appropriated to the commissioner of transportation for 
18.25 	assistance to transit systems outside the metropolitan area under section 174.24. Beginning 
18.26 	in fiscal year 2003, The commissioner may use up to $400,000 each year $408,000 in 
18.27 	fiscal year 2008 and $416,000 in fiscal year 2009 and thereafter for administration of the 
18.28 	transit program. The commissioner shall use the fund account for transit operations as 
18.29 	provided in section 174.24 and related program administration. 
18.30 		Subd. 2.Metropolitan area transit fund account. The metropolitan area transit 
18.31 	fund account is established within the transit assistance fund in the state treasury. All 
18.32 	money in the fund account is annually appropriated to the Metropolitan Council for the 
18.33 	funding of transit systems within the metropolitan area under sections 473.384, 473.386,
18.34 	473.387, 473.388, and 473.405 to 473.449. 
19.1 		Subd. 3.Metropolitan area transit appropriation account. The metropolitan 
19.2 	area transit appropriation account is established within the general fund. Money in the 
19.3 	account is to be used for the funding of transit systems in the metropolitan area, subject to 
19.4 	legislative appropriation.

19.5 	EFFECTIVE DATE. This section is effective July 1, 2007.

19.6 	Sec. 2. Minnesota Statutes 2006, section 297A.70, subdivision 2, is amended to read:
19.7 		Subd. 2.Sales to government. (a) All sales, except those listed in paragraph (b), 
19.8 	to the following governments and political subdivisions, or to the listed agencies or 
19.9 	instrumentalities of governments and political subdivisions, are exempt:
19.10 	(1) the United States and its agencies and instrumentalities;
19.11 	(2) school districts, the University of Minnesota, state universities, community 
19.12 	colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts 
19.13 	Education, and an instrumentality of a political subdivision that is accredited as an 
19.14 	optional/special function school by the North Central Association of Colleges and Schools;
19.15 	(3) hospitals and nursing homes owned and operated by political subdivisions of 
19.16 	the state of tangible personal property and taxable services used at or by hospitals and 
19.17 	nursing homes;
19.18 	(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip 
19.19 	operations provided for in section 473.4051;
19.20 	(5) (4) other states or political subdivisions of other states, if the sale would be 
19.21 	exempt from taxation if it occurred in that state; and
19.22 	(6) (5) sales to public libraries, public library systems, multicounty, multitype library 
19.23 	systems as defined in section 134.001, county law libraries under chapter 134A, state 
19.24 	agency libraries, the state library under section 480.09, and the Legislative Reference 
19.25 	Library.
19.26 	(b) This exemption does not apply to the sales of the following products and services:
19.27 	(1) building, construction, or reconstruction materials purchased by a contractor 
19.28 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
19.29 	guaranteed maximum price covering both labor and materials for use in the construction, 
19.30 	alteration, or repair of a building or facility;
19.31 	(2) construction materials purchased by tax exempt entities or their contractors to 
19.32 	be used in constructing buildings or facilities which will not be used principally by the 
19.33 	tax exempt entities;
19.34 	(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 5, 
19.35 	except for leases entered into by the United States or its agencies or instrumentalities; or 
20.1 	(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
20.2 	(2), and prepared food, candy, and soft drinks, except for lodging, prepared food, candy, 
20.3 	and soft drinks purchased directly by the United States or its agencies or instrumentalities. 
20.4 	(c) As used in this subdivision, "school districts" means public school entities and 
20.5 	districts of every kind and nature organized under the laws of the state of Minnesota, and 
20.6 	any instrumentality of a school district, as defined in section 471.59. 

20.7 	Sec. 3. Minnesota Statutes 2006, section 297A.71, is amended by adding a subdivision 
20.8 	to read:
20.9 		Subd. 40.Commuter rail and light rail; material, supplies, and equipment.
 20.10 	Materials and supplies used or consumed in, and equipment incorporated into, the 
20.11 	construction or improvement of a commuter rail transportation system operated under 
20.12 	sections 174.80 to 174.90 and a light rail transit system constructed and operated under 
20.13 	sections 473.3993 to 473.3997 and 473.4051, are exempt. This exemption includes 
20.14 	railroad cars and engines and related equipment.

20.15 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
20.16 	December 31, 2006.

20.17 	Sec. 4. Minnesota Statutes 2006, section 297A.815, subdivision 1, is amended to read:
20.18 		Subdivision 1.Motor vehicle lease price; payment. (a) In the case of a lease of 
20.19 	a motor vehicle as provided in section 297A.61, subdivision 4, paragraph (k), clause 
20.20 	(2), the tax is imposed on the total amount to be paid by the lessee under the lease 
20.21 	agreement, together with the document administration fee or documentary fee under 
20.22 	section 53C.01, subdivision 2. The lessor shall collect the tax in full at the time the lease 
20.23 	is executed or, if the tax is included in the lease and the lease is assigned, the tax is due 
20.24 	from the original lessor at the time the lease is assigned. The total amount to be paid by 
20.25 	the lessee under the lease agreement equals the agreed-upon value of the vehicle less 
20.26 	manufacturer's rebates, the stated residual value of the leased vehicle, and the total value 
20.27 	allowed for a vehicle owned by the lessee taken in trade by the lessor, plus the price of 
20.28 	any taxable goods and services included in the lease and the rent charge as provided by 
20.29 	Code of Federal Regulations, title 12, section 213.4, excluding any rent charge related 
20.30 	to the capitalization of the tax.
20.31 	(b) If the total amount paid by the lessee for use of the leased vehicle includes 
20.32 	amounts that are not calculated at the time the lease is executed, the tax is imposed and 
20.33 	must be collected by the lessor at the time the amounts are paid by the lessee. In the case 
20.34 	of a lease which by its terms may be renewed, the sales tax is due and payable on the 
21.1 	total amount to be paid during the initial term of the lease, and then for each subsequent 
21.2 	renewal period on the total amount to be paid during the renewal period.
21.3 	(c) If a lease is canceled or rescinded on or before 90 days of its execution or if a 
21.4 	vehicle is returned to the manufacturer under section 325F.665, the lessor may file a claim 
21.5 	for a refund of the total tax paid minus the amount of tax due for the period the vehicle is 
21.6 	used by the lessee.
21.7 	(d) If a lessee's obligation to make payments on a lease is canceled more than 90 
21.8 	days after its execution, a credit is allowed against sales tax or motor vehicles sales tax 
21.9 	due on a subsequent lease or purchase of a motor vehicle if that lease or purchase is 
21.10 	consummated within 30 days of the date the prior lease was canceled. The amount of the 
21.11 	credit is equal to (1) the sales tax paid at the inception of the lease, multiplied by (2) 
21.12 	the ratio of the number of full months remaining in the lease at the time of termination 
21.13 	compared to the term of the lease used in calculating sales tax paid at the inception of the 
21.14 	lease. The credit or any part of it cannot be assigned or transferred to another person.

21.15 	Sec. 5. Minnesota Statutes 2006, section 297A.815, is amended by adding a 
21.16 	subdivision to read:
21.17 		Subd. 3.Deposit of revenues. Notwithstanding any law to the contrary, money 
21.18 	collected and received under this section must be deposited as follows: 
21.19 	(1) From July 1, 2007, through June 30, 2008, after deductions for general 
21.20 	fund appropriations for agency compensation adjustments, town road signs, and port 
21.21 	development assistance, 31.75 percent must be deposited in the highway user tax 
21.22 	distribution fund, and 32 percent must be deposited in the transit assistance fund and 
21.23 	allocated 24 percent to the metropolitan area transit account, and eight percent to the 
21.24 	greater Minnesota transit account. The remaining money must be deposited in the general 
21.25 	fund.
21.26 	(2) From July 1, 2008, through June 30, 2009, after deductions for general fund 
21.27 	appropriations for agency compensation adjustments, 36.75 percent must be deposited in 
21.28 	the highway user tax distribution fund, and 37 percent must be deposited in the transit 
21.29 	assistance fund and allocated 27.75 percent to the metropolitan area transit account, 
21.30 	and 9.25 percent to the greater Minnesota transit account. The remaining money must 
21.31 	be deposited in the general fund.
21.32 	(3) From July 1, 2009, through June 30, 2010, 41.75 percent must be deposited in 
21.33 	the highway user tax distribution fund, and 42 percent must be deposited in the transit 
21.34 	assistance fund and allocated 31.5 percent to the metropolitan area transit account, and 
22.1 	10.5 percent to the greater Minnesota transit account. The remaining money must be 
22.2 	deposited in the general fund.
22.3 	(4) From July 1, 2010, through June 30, 2011, 46.75 percent must be deposited in 
22.4 	the highway user tax distribution fund, and 47 percent must be deposited in the transit 
22.5 	assistance fund and allocated 35.25 percent to the metropolitan area transit account, and 
22.6 	11.75 percent to the greater Minnesota transit account. The remaining money must be 
22.7 	deposited in the general fund.
22.8 	(5) On and after July 1, 2011, 50 percent must be deposited in the highway user tax 
22.9 	distribution fund, and 50 percent must be deposited in the transit assistance fund and 
22.10 	allocated 37.5 percent to the metropolitan area transit account, and 12.5 percent to the 
22.11 	greater Minnesota transit account.

22.12 	Sec. 6. Minnesota Statutes 2006, section 297A.815, is amended by adding a 
22.13 	subdivision to read:
22.14 		Subd. 4.Reporting of tax proceeds. A lessor must report taxes collected under 
22.15 	this section separately from any other taxes collected and remitted under this chapter or 
22.16 	chapter 297B.

22.17 	Sec. 7. Minnesota Statutes 2006, section 297A.94, is amended to read:
22.18 	297A.94 DEPOSIT OF REVENUES.
22.19 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
22.20 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
22.21 	treasury and credit them to the general fund.
22.22 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
22.23 	account in the special revenue fund if:
22.24 	(1) the taxes are derived from sales and use of property and services purchased for 
22.25 	the construction and operation of an agricultural resource project; and
22.26 	(2) the purchase was made on or after the date on which a conditional commitment 
22.27 	was made for a loan guaranty for the project under section 41A.04, subdivision 3. 
22.28 	The commissioner of finance shall certify to the commissioner the date on which the 
22.29 	project received the conditional commitment. The amount deposited in the loan guaranty 
22.30 	account must be reduced by any refunds and by the costs incurred by the Department of 
22.31 	Revenue to administer and enforce the assessment and collection of the taxes.
22.32 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
22.33 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
23.1 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
23.2 	as follows: 
23.3 	(1) first to the general obligation special tax bond debt service account in each fiscal 
23.4 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and 
23.5 	(2) after the requirements of clause (1) have been met, the balance to the general 
23.6 	fund.
23.7 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
23.8 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
23.9 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
23.10 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
23.11 	subdivision 5, for the previous calendar year. 
23.12 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
23.13 	for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and 
23.14 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
23.15 	the commissioner in the state treasury as follows: 
23.16 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
23.17 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
23.18 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
23.19 	of land, water, and other natural resources of the state;
23.20 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
23.21 	may be spent only for state parks and trails;
23.22 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
23.23 	may be spent only on metropolitan park and trail grants;
23.24 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
23.25 	may be spent only on local trail grants; and
23.26 	(5) two percent of the receipts must be deposited in the natural resources fund, 
23.27 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
23.28 	Conservatory, and the Duluth Zoo.
23.29 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
23.30 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
23.31 	shall supplement traditional sources of funding for those purposes. Land acquired with 
23.32 	money deposited in the game and fish fund under paragraph (e) must be open to public 
23.33 	hunting and fishing during the open season, except that in aquatic management areas or 
23.34 	on lands where angling easements have been acquired, fishing may be prohibited during 
23.35 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
24.1 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
24.2 	and wildlife resources under paragraph (e) must be allocated for field operations.
24.3 	(g) The revenues, including interest and penalties, collected under section 297A.815 
24.4 	must be deposited as provided in section 297A.815, subdivision 3.

24.5 	Sec. 8. Minnesota Statutes 2006, section 297B.01, subdivision 8, is amended to read:
24.6 		Subd. 8.Purchase price.  (a) "Purchase price" means the total consideration valued 
24.7 	in money for a sale, whether paid in money or otherwise. The purchase price excludes the 
24.8 	amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle 
24.9 	is taken in trade as a credit or as part payment on a motor vehicle taxable under this 
24.10 	chapter, the credit or trade-in value allowed by the person selling the motor vehicle shall 
24.11 	be deducted from the total selling price to establish the purchase price of the vehicle 
24.12 	being sold and the trade-in allowance allowed by the seller shall constitute the purchase 
24.13 	price of the motor vehicle accepted as a trade-in. The purchase price in those instances 
24.14 	where the motor vehicle is acquired by gift or by any other transfer for a nominal or no 
24.15 	monetary consideration shall also include the average value of similar motor vehicles, 
24.16 	established by standards and guides as determined by the motor vehicle registrar. The 
24.17 	purchase price in those instances where a motor vehicle is manufactured by a person who 
24.18 	registers it under the laws of this state shall mean the manufactured cost of such motor 
24.19 	vehicle and manufactured cost shall mean the amount expended for materials, labor, 
24.20 	and other properly allocable costs of manufacture, except that in the absence of actual 
24.21 	expenditures for the manufacture of a part or all of the motor vehicle, manufactured costs 
24.22 	shall mean the reasonable value of the completed motor vehicle.
24.23 	(b) The term "purchase price" shall not include the portion of the value of a motor 
24.24 	vehicle due solely to modifications necessary to make the motor vehicle disability 
24.25 	accessible. 
24.26 	(c) The term "purchase price" shall not include the transfer of a motor vehicle by 
24.27 	way of gift between a husband and wife or parent and child, or to a nonprofit organization 
24.28 	as provided under subdivision 7, paragraph (e), nor shall it include the transfer of a motor 
24.29 	vehicle by a guardian to a ward when there is no monetary consideration and the title to 
24.30 	such vehicle was registered in the name of the guardian, as guardian, only because the 
24.31 	ward was a minor. 
24.32 	(d) The term "purchase price" shall not include the transfer of a motor vehicle as a 
24.33 	gift between a foster parent and foster child. For purposes of this subdivision, a foster 
24.34 	relationship exists, regardless of the age of the child, if (1) a foster parent's home is or was 
25.1 	licensed as a foster family home under Minnesota Rules, parts 9545.0010 to 9545.0260, 
25.2 	and (2) the county verifies that the child was a state ward or in permanent foster care.
25.3 	(e) There shall not be included in "purchase price" the amount of any tax imposed by 
25.4 	the United States upon or with respect to retail sales whether imposed upon the retailer or 
25.5 	the consumer.
25.6 	(f) The document administration fee or documentary fee under section 53C.01, 
25.7 	subdivision 2, must be included in the purchase price.

25.8 	Sec. 9. Minnesota Statutes 2006, section 297B.09, subdivision 1, is amended to read:
25.9 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
25.10 	chapter must be deposited as provided in this subdivision.
25.11 	(b) From July 1, 2002, to June 30, 2003, 32 percent of the money collected and 
25.12 	received must be deposited in the highway user tax distribution fund, 20.5 percent must be 
25.13 	deposited in the metropolitan area transit fund under section 16A.88, and 1.25 percent 
25.14 	must be deposited in the greater Minnesota transit fund under section 16A.88. The 
25.15 	remaining money must be deposited in the general fund. 
25.16 	(c) From July 1, 2003, to June 30, 2007, 30 percent of the money collected and 
25.17 	received must be deposited in the highway user tax distribution fund, 21.5 percent must be 
25.18 	deposited in the metropolitan area transit fund under section 16A.88, 1.43 percent must be 
25.19 	deposited in the greater Minnesota transit fund under section 16A.88, 0.65 percent must 
25.20 	be deposited in the county state-aid highway fund, and 0.17 percent must be deposited 
25.21 	in the municipal state-aid street fund. The remaining money must be deposited in the 
25.22 	general fund. 
25.23 	(d) On and after From July 1, 2007, 32through June 30, 2008, 38.25 percent of the 
25.24 	money collected and received must be deposited in the highway user tax distribution 
25.25 	fund, 20.524.225 percent must be deposited in the metropolitan area transit fund account
25.26 	under section 16A.88, and 1.251.275 percent must be deposited in the greater Minnesota 
25.27 	transit fund account under section 16A.88. The remaining money must be deposited 
25.28 	in the general fund. 
25.29 	(c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected 
25.30 	and received must be deposited in the highway user tax distribution fund, 28.025 percent 
25.31 	must be deposited in the metropolitan area transit account under section 16A.88, 1.475 
25.32 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
25.33 	and the remaining money must be deposited in the general fund.
25.34 	(d) From July 1, 2009, through June 30, 2010, 50.25 percent of the money collected 
25.35 	and received must be deposited in the highway user tax distribution fund, 31.825 percent 
26.1 	must be deposited in the metropolitan area transit account under section 16A.88, 1.675 
26.2 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
26.3 	and the remaining money must be deposited in the general fund.
26.4 	(e) From July 1, 2010, through June 30, 2011, 56.25 percent of the money collected 
26.5 	and received must be deposited in the highway user tax distribution fund, 35.625 percent 
26.6 	must be deposited in the metropolitan area transit account under section 16A.88, 1.875 
26.7 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
26.8 	and the remaining money must be deposited in the general fund.
26.9 	(f) On and after July 1, 2011, 60 percent of the money collected and received must 
26.10 	be deposited in the highway user tax distribution fund, 38 percent must be deposited in the 
26.11 	metropolitan area transit account under section 16A.88, and two percent must be deposited 
26.12 	in the greater Minnesota transit account under section 16A.88.

26.13 	EFFECTIVE DATE. This section is effective July 1, 2007.

26.14 	Sec. 10. Minnesota Statutes 2006, section 473.388, subdivision 4, is amended to read:
26.15 		Subd. 4.Financial assistance. (a) The council must grant the requested financial 
26.16 	assistance if it determines that the proposed service is intended to replace the service to 
26.17 	the applying city or town or combination thereof by the council and that the proposed 
26.18 	service will meet the needs of the applicant at least as efficiently and effectively as the 
26.19 	existing service.
26.20 	(b) The amount of assistance which the council must provide to a system under this 
26.21 	section may not be less than the sum of the amounts determined for each municipality 
26.22 	comprising the system as follows:
26.23 	(1) the transit operating assistance grants received under this subdivision by the 
26.24 	municipality in calendar year 2001 or the tax revenues for transit services levied by the 
26.25 	municipality for taxes payable in 2001, including that portion of the levy derived from 
26.26 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of 
26.27 	the municipality's aid under section 273.1398, subdivision 2, attributable to the transit 
26.28 	levy; times 
26.29 	(2) the ratio of (i) the appropriation from the transit fund to the council for nondebt 
26.30 	transit operations an amount equal to 3.623 percent of the state revenues generated from 
26.31 	the taxes imposed under section 297A.815 and chapter 297B for the current fiscal year to 
26.32 	(ii) the total levy certified by the council under section 473.446 and the opt-out transit 
26.33 	operating assistance grants received under this subdivision in calendar year 2001 or the 
26.34 	tax revenues for transit services levied by all replacement service municipalities under 
26.35 	this section for taxes payable in 2001, including that portion of the levy derived from 
27.1 	the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of 
27.2 	homestead and agricultural credit aid under section 273.1398, subdivision 2, attributable 
27.3 	to nondebt transit levies, times 
27.4 	(3) the ratio of (i) the municipality's total taxable market value for taxes payable in 
27.5 	the most recent year for which data is available 2007 divided by the municipality's total 
27.6 	taxable market value for taxes payable in 2001, to (ii) the total taxable market value of 
27.7 	all property in the metropolitan area located in replacement service municipalities for 
27.8 	taxes payable in the most recent year for which data is available 2007 divided by the 
27.9 	total taxable market value of all property in the metropolitan area located in replacement 
27.10 	service municipalities for taxes payable in 2001.
27.11 	(c) The council shall pay the amount to be provided to the recipient from the funds 
27.12 	the council would otherwise use to fund its transit operations receives in the metropolitan 
27.13 	area transit account under section 16A.88.

27.14 	Sec. 11.  REPEALER.
 27.15 	Minnesota Statutes 2006, section 174.32, is repealed.

27.16 	Sec. 12. EFFECTIVE DATE.
 27.17 	Sections 5 to 7 are effective beginning with revenues collected and remitted 
27.18 	beginning July 1, 2007.

27.19 	ARTICLE 3
27.20 	DRIVER AND VEHICLE SERVICES FEES

27.21 	Section 1. Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:
27.22 		Subd. 3.Exceptions. (a) The registrar shall register all vehicles subject to 
27.23 	registration under the monthly series system for a period of 12 consecutive calendar 
27.24 	months, unless:
27.25 	(1) the application is an original rather than renewal application; or
27.26 	(2) the applicant is a licensed motor vehicle lessor under section 168.27, in which 
27.27 	case the applicant may apply for initial or renewed registration of a vehicle for a period 
27.28 	of four or more months, the month of expiration to be designated by the applicant at the 
27.29 	time of registration. However, to qualify for this exemption, the applicant must pay a $10 
27.30 	administrative fee and present the application to the registrar at St. Paul, or ata designated 
27.31 	deputy registrar offices as the registrar may designate. office. At the end of the initial 
27.32 	registration period, the applicant may only renew the registration on the vehicle for the 
27.33 	remainder of the period prescribed under subdivision 1 had the applicant not utilized the 
28.1 	exception in this subdivision. Upon the renewal of registration, the applicant shall pay 
28.2 	1/12 of the annual tax for each calendar month remaining in the registration period in 
28.3 	addition to a $10 administrative fee. Nothing in this subdivision prohibits the applicant 
28.4 	from purchasing registration for an additional full registration period in conjunction with 
28.5 	the purchase of the remainder portion.
28.6 	(b) In any instance except that of a licensed motor vehicle lessor, the registrar shall 
28.7 	not approve registering the vehicle subject to the application for a period of less than three 
28.8 	months, except when the registrar determines that to do otherwise will help to equalize 
28.9 	the registration and renewal work load of the department.
28.10 	(c) The fee collected under paragraph (a), clause (2), must be deposited in the vehicle 
28.11 	services operating account in the special revenue fund as specified in section 299A.705.

28.12 	Sec. 2. Minnesota Statutes 2006, section 168.12, subdivision 5, is amended to read:
28.13 		Subd. 5.Additional fee. (a) In addition to any fee otherwise authorized or any tax 
28.14 	otherwise imposed upon any vehicle, the payment of which is required as a condition to 
28.15 	the issuance of any plate or plates, the commissioner shall impose the fee specified in 
28.16 	paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate 
28.17 	or plates, except for plates issued to disabled veterans as defined in section 168.031 and 
28.18 	plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17, 
28.19 	for passenger automobiles. The commissioner shall issue graphic design plates only 
28.20 	for vehicles registered pursuant to section 168.017 and recreational vehicles registered 
28.21 	pursuant to section 168.013, subdivision 1g.
28.22 	(b) Unless otherwise specified or exempted by statute, the following plate and 
28.23 	validation sticker fees apply for the original, duplicate, or replacement issuance of a 
28.24 	plate in a plate year:

28.25	Sequential Regular Double Plate
		$
	4.25
	
28.26	Sequential Special Plate-Double
		$
	7.00
	
28.27	Sequential Regular Single Plate
		$
	3.00
	
28.28	Sequential Special Plate-Single
		$
	5.50
	
28.29	Utility Trailer Self-Adhesive Plate
		$
	2.50
	
28.30	Nonsequential Double Plate
		$
	14.00
	
28.31	Nonsequential Single Plate
		$
	10.00
	
28.32	Duplicate Sticker
		$
	1.00

28.33	License Plate 
			Single
		Double
	
28.34		Regular and Disability
		$
	4.50
	$
	6.00
	
28.35		Special
		$
	8.50
	$
	10.00
	
28.36		Personalized (Replacement)
		$
	10.00
	$
	14.00
	
28.37		Collector Category
		$
	13.50
	$
	15.00
	
29.1		Emergency Vehicle Display
		$
	3.00
	$
	6.00
	
29.2		Utility Trailer Self-Adhesive
		$
	2.50
			
29.3	Stickers
						
29.4		Duplicate year
		$
	1.00
	$
	1.00
	
29.5
29.6		International Fuel Tax 
Agreement
		$
	2.50
			
29.7 	(c) For vehicles that require two of the categories above, the registrar shall only 
29.8 	charge the higher of the two fees and not a combined total.

29.9 	Sec. 3. Minnesota Statutes 2006, section 168A.29, subdivision 1, is amended to read:
29.10 		Subdivision 1.Amounts. (a) The department must be paid the following fees:
29.11 	(1) for filing an application for and the issuance of an original certificate of title, the 
29.12 	sum of $5.50$6.25 of which $2.50$3.25 must be paid into the vehicle services operating 
29.13 	account of the special revenue fund under section 299A.705;
29.14 	(2) for each security interest when first noted upon a certificate of title, including the 
29.15 	concurrent notation of any assignment thereof and its subsequent release or satisfaction, 
29.16 	the sum of $2, except that no fee is due for a security interest filed by a public authority 
29.17 	under section 168A.05, subdivision 8;
29.18 	(3) for the transfer of the interest of an owner and the issuance of a new certificate of 
29.19 	title, the sum of $5.50 of which $2.50 must be paid into the vehicle services operating 
29.20 	account of the special revenue fund under section 299A.705;
29.21 	(4) for each assignment of a security interest when first noted on a certificate of title, 
29.22 	unless noted concurrently with the security interest, the sum of $1;
29.23 	(5) for issuing a duplicate certificate of title, the sum of $6.50$7.25 of which $2.50
29.24 	$3.25 must be paid into the vehicle services operating account of the special revenue fund 
29.25 	under section 299A.705.
29.26 	(b) After June 30, 1994, in addition to each of the fees required under paragraph (a), 
29.27 	clauses (1) and (3), the department must be paid $3.50. The additional $3.50 fee collected 
29.28 	under this paragraph must be deposited in the special revenue fund and credited to the 
29.29 	public safety motor vehicle account established in section 299A.70.

29.30 	Sec. 4. Minnesota Statutes 2006, section 171.02, subdivision 3, is amended to read:
29.31 		Subd. 3.Motorized bicycle. (a) A motorized bicycle may not be operated on any 
29.32 	public roadway by any person who does not possess a valid driver's license, unless the 
29.33 	person has obtained a motorized bicycle operator's permit or motorized bicycle instruction 
29.34 	permit from the commissioner of public safety. The operator's permit may be issued to 
29.35 	any person who has attained the age of 15 years and who has passed the examination 
30.1 	prescribed by the commissioner. The instruction permit may be issued to any person who 
30.2 	has attained the age of 15 years and who has successfully completed an approved safety 
30.3 	course and passed the written portion of the examination prescribed by the commissioner.
30.4 	(b) This course must consist of, but is not limited to, a basic understanding of:
30.5 	(1) motorized bicycles and their limitations;
30.6 	(2) motorized bicycle laws and rules;
30.7 	(3) safe operating practices and basic operating techniques;
30.8 	(4) helmets and protective clothing;
30.9 	(5) motorized bicycle traffic strategies; and
30.10 	(6) effects of alcohol and drugs on motorized bicycle operators.
30.11 	(c) The commissioner may adopt rules prescribing the content of the safety course, 
30.12 	examination, and the information to be contained on the permits. A person operating a 
30.13 	motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed 
30.14 	by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel 
30.15 	instruction permit.
30.16 	(d) The fees for motorized bicycle operator's permits are as follows:

30.17	(1)
	Examination and operator's permit, valid for one year
	$ 66.75
	
30.18	(2)
	Duplicate
	$ 33.75
	
30.19	(3)
	Renewal permit before age 21 and valid until age 21
	$ 99.75
	
30.20	(4)
	Renewal permit age 21 or older and valid for four years
	$1515.75
	
30.21	(5)
	Duplicate of any renewal permit
	$ 4.505.25
	
30.22
30.23	(6)
	Written examination and instruction permit, valid for 30 
days
	$ 66.75

30.24 	Sec. 5. Minnesota Statutes 2006, section 171.06, subdivision 2, is amended to read:
30.25 		Subd. 2.Fees. (a) The fees for a license and Minnesota identification card are 
30.26 	as follows:

30.27
30.28	Classified Driver's 
License
		D-$21.50
	C-$25.50
	B-$32.50
	A-$40.50
	
30.29	Classified Under -21 D.L.
		D-$21.50
	C-$25.50
	B-$32.50
	A-$20.50
	
30.30
30.31	Classified Driver's 
License
		D-$22.25
	C-$26.25
	B-$33.25
	A-$41.25
	
30.32	Classified Under-21 D.L.
		D-$22.25
	C-$26.25
	B-$33.25
	A-$21.25
	
30.33
30.34	Instruction Permit
					$9.50
$10.25
	
30.35
30.36	Provisional License
					$12.50
$13.25
	
31.1
31.2
31.3	Duplicate License or 
duplicate identification 
card
					$11.00
$11.75
	
31.4
31.5
31.6
31.7
31.8
31.931.10
31.11
	Minnesota identification 
card or Under-21 
Minnesota identification 
card, other than duplicate, 
except as otherwise 
provided in section 
171.07, subdivisions 3 
and 3a
					$15.50
$16.25
	
31.12 	(b) Notwithstanding paragraph (a), an individual who holds a provisional license and 
31.13 	has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 
31.14 	169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving 
31.15 	violations, and (3) convictions for moving violations that are not crash related, shall have a 
31.16 	$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation" 
31.17 	has the meaning given it in section 171.04, subdivision 1.
31.18 	(c) In addition to the driver's license fee required under paragraph (a), the 
31.19 	commissioner shall collect an additional $4 processing fee from each new applicant 
31.20 	or individual renewing a license with a school bus endorsement to cover the costs for 
31.21 	processing an applicant's initial and biennial physical examination certificate. The 
31.22 	department shall not charge these applicants any other fee to receive or renew the 
31.23 	endorsement.

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

31.33 	Sec. 7. Minnesota Statutes 2006, section 171.07, subdivision 11, is amended to read:
31.34 		Subd. 11.Standby or temporary custodian. (a) Upon the written request of the 
31.35 	applicant and upon payment of an additional fee of $3.50 $4.25, the department shall issue 
31.36 	a driver's license or Minnesota identification card bearing a symbol or other appropriate 
32.1 	identifier indicating that the license holder has appointed an individual to serve as a 
32.2 	standby or temporary custodian under chapter 257B.
32.3 	(b) The request must be accompanied by a copy of the designation executed under 
32.4 	section 257B.04.
32.5 	(c) The department shall maintain a computerized records system of all individuals 
32.6 	listed as standby or temporary custodians by driver's license and identification card 
32.7 	applicants. This data must be released to appropriate law enforcement agencies under 
32.8 	section 13.69. Upon a parent's request and payment of a fee of $3.50 $4.25, the 
32.9 	department shall revise its list of standby or temporary custodians to reflect a change 
32.10 	in the appointment.
32.11 	(d) At the request of the license or cardholder, the department shall cancel the 
32.12 	standby or temporary custodian indication without additional charge. However, this 
32.13 	paragraph does not prohibit a fee that may be applicable for a duplicate or replacement 
32.14 	license or card, renewal of a license, or other service applicable to a driver's license or 
32.15 	identification card.
32.16 	(e) Notwithstanding sections 13.08, subdivision 1, and 13.69, the department 
32.17 	and department employees are conclusively presumed to be acting in good faith when 
32.18 	employees rely on statements made, in person or by telephone, by persons purporting to be 
32.19 	law enforcement and subsequently release information described in paragraph (b). When 
32.20 	acting in good faith, the department and department personnel are immune from civil 
32.21 	liability and not subject to suit for damages resulting from the release of this information.
32.22 	(f) The department and its employees:
32.23 	(1) have no duty to inquire or otherwise determine whether a designation submitted 
32.24 	under this subdivision is legally valid and enforceable; and
32.25 	(2) are immune from all civil liability and not subject to suit for damages resulting 
32.26 	from a claim that the designation was not legally valid and enforceable.
32.27 	(g) Of the fees received by the department under this subdivision:
32.28 	(1) Up to $61,000 received must be deposited in the general fund.
32.29 	(2) All other fees must be deposited in the driver services operating account in the 
32.30 	special revenue fund specified in section 299A.705.

32.31 	Sec. 8. Minnesota Statutes 2006, section 171.20, subdivision 4, is amended to read:
32.32 		Subd. 4.Reinstatement fee. (a) Before the license is reinstated, (1) an individual 
32.33 	whose driver's license has been suspended under section 171.16, subdivisions 2 and 3; 
32.34 	171.175; 171.18; or 171.182, or who has been disqualified from holding a commercial 
32.35 	driver's license under section 171.165, and (2) an individual whose driver's license has 
33.1 	been suspended under section 171.186 and who is not exempt from such a fee, must 
33.2 	pay a fee of $20.
33.3 	(b) Before the license is reinstated, an individual whose license has been suspended 
33.4 	under sections 169.791 to 169.798 must pay a $20 reinstatement fee.
33.5 	(c) When fees are collected by a licensing agent appointed under section 171.061, a 
33.6 	handling charge is imposed in the amount specified under section 171.061, subdivision 4. 
33.7 	The reinstatement fee and surcharge must be deposited in an approved state depository as 
33.8 	directed under section 171.061, subdivision 4.
33.9 	(d) Reinstatement fees collected under paragraph (a) for suspensions under sections 
33.10 	171.16, subdivision 3, and 171.18, subdivision 1, clause (10), must be deposited in the 
33.11 	special revenue fund and are appropriated to the Peace Officer Standards and Training 
33.12 	Board for peace officer training reimbursement to local units of government.
33.13 	(e) A suspension may be rescinded without fee for good cause.

33.14 	Sec. 9. Minnesota Statutes 2006, section 299D.09, is amended to read:
33.15 	299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
33.16 	Fees charged for escort services provided by the State Patrol are annually 
33.17 	appropriated to the commissioner of public safety to administer and provide these services.
33.18 	The fees charged for services provided by the State Patrol with a vehicle are $73.60 
33.19 	an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and thereafter. The fees 
33.20 	charged for services provided without a vehicle are $54 an hour in fiscal year 2008 and 
33.21 	$56.16 an hour in fiscal year 2009 and thereafter.
33.22 	The fees charged for State Patrol flight services are $140 an hour for a fixed wing 
33.23 	aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air.

33.24 	ARTICLE 4
33.25 	TRUNK HIGHWAY BONDING

33.26 	Section 1. TRANSPORTATION APPROPRIATIONS.
 33.27 		Subdivision 1.Mankato district headquarters and Transportation Building.
 33.28 	$33,388,000 is appropriated from the bond proceeds account in the trunk highway fund. 
33.29 	Of that amount:
33.30 	(1) $20,673,000 is to the commissioner of transportation to design, construct, 
33.31 	furnish, and equip a new Department of Transportation district headquarters facility in 
33.32 	Mankato; and
34.1 	(2) $12,715,000 is to the commissioner of administration to repair and renovate the 
34.2 	exterior of the Department of Transportation Building at 395 John Ireland Boulevard in 
34.3 	St. Paul.

34.4 	Sec. 2. BOND SALE AUTHORIZATION.
 34.5 	To provide the money appropriated in this article from the bond proceeds account 
34.6 	in the trunk highway fund, the commissioner of finance shall sell and issue bonds of 
34.7 	the state in an amount up to $33,388,000 in the manner, upon the terms, and with the 
34.8 	effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota 
34.9 	Constitution, article XIV, section 11, at the times and in the amounts requested by the 
34.10 	commissioner of transportation. The proceeds of the bonds, except accrued interest and 
34.11 	any premium received from the sale of the bonds, must be deposited in the bond proceeds 
34.12 	account in the trunk highway fund.

34.13 	ARTICLE 5
34.14 	TRANSPORTATION STATUTORY CHANGES

34.15 	Section 1. Minnesota Statutes 2006, section 16A.1522, subdivision 1, is amended to 
34.16 	read:
34.17 		Subdivision 1.Forecast. If, on the basis of a forecast of general fund revenues and 
34.18 	expenditures in November of an even-numbered year or February of an odd-numbered 
34.19 	year, the commissioner projects a positive unrestricted budgetary general fund balance 
34.20 	at the close of the biennium that exceeds one-half of one percent of total general fund 
34.21 	biennial revenues, 25 percent of the entire balance is appropriated from the general fund 
34.22 	to the commissioner of finance for transfer to the transportation endowment fund. The 
34.23 	commissioner shall designate the entire remaining balance as available for rebate to the 
34.24 	taxpayers of this state.

34.25 	EFFECTIVE DATE. This section is effective January 1, 2009.

34.26 	Sec. 2. Minnesota Statutes 2006, section 53C.01, subdivision 2, is amended to read:
34.27 		Subd. 2.Cash sale price. "Cash sale price" means the price at which the seller 
34.28 	would in good faith sell to the buyer, and the buyer would in good faith buy from the seller, 
34.29 	the motor vehicle which is the subject matter of the retail installment contract, if such sale 
34.30 	were a sale for cash, instead of a retail installment sale. The cash sale price may include 
34.31 	any taxes, charges for delivery, servicing, repairing, or improving the motor vehicle, 
34.32 	including accessories and their installation, and any other charges agreed upon between 
35.1 	the parties. The cash price may not include a documentary fee or document administration 
35.2 	fee in excess of $50 $75 for services actually rendered to, for, or on behalf of, the retail 
35.3 	buyer in preparing, handling, and processing documents relating to the motor vehicle and 
35.4 	the closing of the retail sale. "Documentary fee" and "document administration fee" do 
35.5 	not include an optional electronic transfer fee as defined under subdivision 14.

35.6 	Sec. 3. [160.95] CREATION OF FUND.
35.7 		Subdivision 1.Transportation endowment fund. The transportation endowment 
35.8 	fund is created as an account in the state treasury to receive money as specified by law. 
35.9 	The State Board of Investment shall invest the fund under section 11A.24. All earnings 
35.10 	of the fund must be credited to the fund.
35.11 		Subd. 2.Use of fund.  (a) On July 1 of each year, an amount equal to five 
35.12 	percent of the market value of the fund on the preceding July 1 is appropriated from the 
35.13 	transportation endowment fund to the commissioner of finance for transfer to the funds 
35.14 	specified in this section.
35.15 	(b) Sixty percent of the amount transferred must be credited to the highway user 
35.16 	tax distribution fund.
35.17 	(c) Forty percent of the amount transferred must be credited to the transit fund 
35.18 	and allocated two percent to the greater Minnesota transit account and 38 percent to the 
35.19 	metropolitan area transit account.

35.20 	EFFECTIVE DATE. This section is effective July 1, 2009.

35.21 	Sec. 4. Minnesota Statutes 2006, section 161.081, is amended to read:
35.22 	161.081 HIGHWAY USER TAX, DISTRIBUTION, INVESTMENT.
35.23 		Subdivision 1.Distribution of five percent. (a) Pursuant to article 14, section 5, of 
35.24 	the Constitution, five percent of the net highway user tax distribution fund is set aside, and 
35.25 	apportioned to the county state-aid highway fund.
35.26 	(b) That apportionment is further distributed as follows:
35.27 	(1) 30.5 percent to the town road account created in section 162.081; 
35.28 	(2) 16 percent to the town bridge account, which is created in the state treasury; and
35.29 	(3) 5.5 percent to the municipal turnback account, which is created in the state 
35.30 	treasury for restoration of trunk highways that have reverted or that will revert to cities;
35.31 	(4) 33.5 percent to the county turnback account, which is created in the state treasury 
35.32 	for restoration of trunk highways that have reverted or will revert to counties; and
35.33 	(5)53.5 14.5 percent to the flexible highway account created in subdivision 3.
36.1 	For purposes of this subdivision, "restoration" means the level of effort required to improve 
36.2 	the route that will be turned back to an acceptable condition as determined by agreement 
36.3 	made between the commissioner and the county or city before the route is turned back.
36.4 		Subd. 2.Investment. Upon the request of the commissioner, money in the highway 
36.5 	user tax distribution fund shall be invested by the State Board of Investment in those 
36.6 	securities authorized for that purpose in section 11A.21. All interest and profits from the 
36.7 	investments must be credited to the highway user tax distribution fund. The commissioner 
36.8 	of finance shall be the custodian of all securities purchased under this section. 
36.9 		Subd. 3.Flexible highway account; turnback accounts. (a) The flexible highway 
36.10 	account is created in the state treasury. Money in the account maymust be used either 
36.11 	for the restoration of former trunk highways that have reverted to counties or to statutory 
36.12 	or home rule charter cities or for regular trunk highway purposessafety improvements 
36.13 	on trunk highways, county highways, municipal highways or streets, or for routes of 
36.14 	regional significance.
36.15 	(b) For purposes of this subdivision, "restoration" means the level of effort required 
36.16 	to improve the route that will be turned back to an acceptable condition as determined 
36.17 	by agreement made between the commissioner and the county or city before the route 
36.18 	is turned back.
36.19 	(c) The commissioner shall review the need for funds to restore highways that have 
36.20 	been or will be turned back and the need for funds for the trunk highway system. The 
36.21 	commissioner shall determine, on a biennial basis, the percentage of this flexible account 
36.22 	to be used for county turnbacks, for municipal turnbacks, and for regular trunk highway 
36.23 	projects safety improvements on trunk highways, county highways, municipal highways 
36.24 	or streets, and for routes of regional significance. The commissioner shall make this 
36.25 	determination only after meeting and holding discussions with committees selected by the 
36.26 	statewide associations of both county commissioners and municipal officials.
36.27 	(d) Money that will be used for the restoration of trunk highways that have reverted 
36.28 	or that will revert to cities must be deposited in the municipal turnback account, which is 
36.29 	created in the state treasury.
36.30 	(e) Money that will be used for the restoration of trunk highways that have reverted 
36.31 	or that will revert to counties must be deposited in the county turnback account, which is 
36.32 	created in the state treasury.
36.33 	(c) Money that will be used for safety improvements must be deposited in the 
36.34 	highway safety improvement account, which is created in the state treasury to be used on 
36.35 	the trunk highway system or as grants to statutory or home rule charter cities, towns, and 
36.36 	counties to assist in paying the costs of constructing or reconstructing trunk highways, city 
37.1 	streets, county highways, or town roads to reduce crashes, deaths, injuries, and property 
37.2 	damage.
37.3 	(f)(d) Money that will be used for routes of regional significance must be deposited 
37.4 	in the routes of regional significance account, which is created in the state treasury, and 
37.5 	used as grants to statutory or home rule charter cities, towns, and counties to assist in 
37.6 	paying the costs of constructing or reconstructing city streets, county highways, or town 
37.7 	roads with statewide or regional significance that have not been fully funded through 
37.8 	other state, federal, or local funding sources.
37.9 	(e) As part of each biennial budget submission to the legislature, the commissioner 
37.10 	shall describe how the money in the flexible highway account will be apportioned among 
37.11 	the county turnback account, the municipal turnback account, and the trunk highway fund
37.12 	between the highway safety improvement account and the routes of regional significance 
37.13 	account.
37.14 	(g) Money apportioned from the flexible highway account to the trunk highway fund 
37.15 	must be used for state road construction and engineering costs.

37.16 	EFFECTIVE DATE. Paragraph (e) is effective January 1, 2009, and the remainder 
37.17 	of this section is effective July 1, 2009.

37.18 	Sec. 5. Minnesota Statutes 2006, section 168.1255, is amended by adding a subdivision 
37.19 	to read:
37.20 		Subd. 6.World War II memorial donation matching account. Money remaining 
37.21 	in the World War II memorial donation matching account after the state share of the 
37.22 	construction costs of the World War II memorial has been paid in full is appropriated to the 
37.23 	commissioner of veterans affairs for services and programs for veterans and their families.

37.24 	Sec. 6. Minnesota Statutes 2006, section 174.03, is amended by adding a subdivision 
37.25 	to read:
37.26 		Subd. 10.Highway construction training. (a) The commissioner of transportation 
37.27 	shall utilize all federal funds available to this state under United States Code, title 23, 
37.28 	section 140, paragraph (b), to develop, conduct, and administer highway construction 
37.29 	training, including skill improvement programs.
37.30 	(b) The commissioner of transportation must report by February 1 of each 
37.31 	odd-numbered year to the house of representatives and senate committees having 
37.32 	jurisdiction over transportation policy and finance concerning the commissioner's 
37.33 	compliance with paragraph (a). The report must, with respect to each of the two previous 
37.34 	calendar years:
38.1 	(1) describe the highway construction training and skill improvement programs the 
38.2 	commissioner has conducted and administered;
38.3 	(2) analyze the results of the commissioner's training programs;
38.4 	(3) state the amount of federal funds available to this state under United States Code, 
38.5 	title 23, section 140, paragraph (b); and
38.6 	(4) identify the amount spent by the commissioner in conducting and administering 
38.7 	the programs.

38.8 	Sec. 7. Minnesota Statutes 2006, section 174.03, is amended by adding a subdivision 
38.9 	to read:
38.10 		Subd. 11.Disadvantaged business enterprise program. (a) The commissioner 
38.11 	shall include in each contract that is funded at least in part by federal funds, a penalty 
38.12 	for each contractor who does not meet the established project disadvantaged business 
38.13 	enterprise goal or demonstrate good faith effort to meet the goal.
38.14 	(b) The commissioner of transportation shall report by February 1 of each 
38.15 	odd-numbered year to the house of representatives and senate committees having 
38.16 	jurisdiction over transportation policy and finance concerning the commissioner's 
38.17 	disadvantaged business enterprise program. The report must, with respect to each of 
38.18 	the two previous calendar years:
38.19 	(1) state the department's annual aspirational goal, compared with the percentage 
38.20 	attained;
38.21 	(2) explain the methodology, applicable facts, and public participation used to 
38.22 	establish the aspirational goal;
38.23 	(3) describe good faith efforts to meet the goal, if the goal was not attained;
38.24 	(4) describe actions to address overconcentration of disadvantaged business 
38.25 	enterprises in certain types of work;
38.26 	(5) state the number of contracts that included disadvantaged business enterprise 
38.27 	goals, the number of contractors that met established disadvantaged business enterprise 
38.28 	goals, and penalties imposed for lack of good faith effort; and
38.29 	(6) describe contracts with no disadvantaged business enterprise goals and, of 
38.30 	those, state number of contracts and amount of each contract with targeted groups under 
38.31 	section 16C.16.

38.32 	Sec. 8. [174.56] REPORT ON MAJOR HIGHWAY PROJECTS.
38.33 		Subdivision 1.Report required. The commissioner of transportation shall submit a 
38.34 	report on January 15, 2008, and on January 15 of each year thereafter, on the status of 
39.1 	major highway projects under construction or planned during the year of the report and for 
39.2 	the ensuing 15 years. For purposes of this section, a "major highway project" is a highway 
39.3 	project that has a total cost for all segments that the commissioner estimates at the time 
39.4 	of the report to be at least $10,000,000.
39.5 		Subd. 2.Report contents. For each major highway project the report must include:
39.6 	(1) a description of the project sufficient to specify its scope and location;
39.7 	(2) a history of the project, including, but not limited to, previous official actions 
39.8 	by the department or the appropriate area transportation partnership, or both, the date 
39.9 	on which the project was first included in the state transportation improvement plan, 
39.10 	the cost of the project at that time, the dates of environmental approval, the dates of 
39.11 	municipal approval, the date of final geometric layout, and the date of establishment of 
39.12 	any construction limits;
39.13 	(3) the project's priority listing or rank within its construction district, if any, as 
39.14 	well as the reasons for that listing or rank, the criteria used in prioritization or rank, any 
39.15 	changes in that prioritization or rank since the project was first included in a department 
39.16 	work plan, and the reasons for those changes; and
39.17 	(4) past and potential future reasons for delay in letting or completing the project.
39.18 		Subd. 3.Department resources. The commissioner shall prepare and submit the 
39.19 	report with existing department staff and resources.

39.20 	Sec. 9. Minnesota Statutes 2006, section 473.1466, is amended to read:
39.21 	473.1466 TRANSPORTATION SYSTEM PERFORMANCE AUDIT; 
39.22 	TRANSIT EVALUATION.
39.23 	(a) In 1997 and every four years thereafter, the council shall provide for an 
39.24 	independent entity selected through a request for proposal process conducted nationwide 
39.25 	to doPrior to each major revision of the transportation policy plan, the council must carry 
39.26 	out a performance auditevaluation of the commutingmetropolitan area's transportation 
39.27 	system as a whole. The performance auditevaluation must evaluate the commuting
39.28 	area's ability to meet the region's needsneed for effective and efficient transportation of 
39.29 	goods and people,and evaluate future trends and their impacts on the region'sarea's 
39.30 	transportation system, and. The council shall use the results of the performance evaluation 
39.31 	to  make recommendations for improving the system in each revision of the transportation 
39.32 	policy plan. The performance audit must recommend performance-funding measures.
39.33 	(b) In 1999 and every four years thereafter, the council must evaluate the 
39.34 	performance of the metropolitan transit system's operation in relationship to the regional 
39.35 	transit performance standards developed by the council.

40.1 	Sec. 10. Minnesota Statutes 2006, section 473.166, is amended to read:
40.2 	473.166 CONTROLLED ACCESS; TRANSIT FIXED-GUIDEWAY;
40.3 	APPROVAL.
40.4 	Before acquiring land for or constructing a controlled access highway or transit 
40.5 	fixed-guideway in the area, the state Transportation Department or local government 
40.6 	unit proposing the acquisition or construction shall submit to the council a statement 
40.7 	describing the proposed project. The statement must be in the form and detail required by 
40.8 	the council. The council shall review the statement to ascertain its consistency with its 
40.9 	policy plan and the development guide. No project may be undertaken unless the council 
40.10 	determines that it is consistent with the policy plan. This approval is in addition to the 
40.11 	requirements of any other statute, ordinance or rule.

40.12 	Sec. 11. Minnesota Statutes 2006, section 473.386, subdivision 1, is amended to read:
40.13 		Subdivision 1.Service objectives. The council shall implement a special 
40.14 	transportation service, as defined in section 174.29, in the metropolitan area. The service 
40.15 	has the following objectives: 
40.16 	(a) to provide greater access to transportation for the elderly, people with disabilities, 
40.17 	and others with special transportation needs in the metropolitan area;
40.18 	(b) to develop an integrated system of special transportation service providing 
40.19 	transportation tailored to meet special individual needs in the most cost-efficient manner; 
40.20 	and
40.21 	(c) to use existing public, private, and private nonprofit providers of service 
40.22 	wherever possible when feasible and cost-efficient, to supplement rather than replace 
40.23 	existing service, and to increase the productivity of all special transportation vehicles 
40.24 	available in the area.

40.25 	Sec. 12. Minnesota Statutes 2006, section 473.386, subdivision 2, is amended to read:
40.26 		Subd. 2.Service contracts; management; transportation accessibility advisory 
40.27 	committee. (a) The council may contract for services necessary for the provision of 
40.28 	special transportation. Transportation service provided under a contract must specify the 
40.29 	service to be provided, the standards that must be met, and the rates for operating and 
40.30 	providing special transportation services.
40.31 	(b) The council shall establish management policies for the service and may contract 
40.32 	with a service administrator for day-to-day administration and management of the service. 
40.33 	Any contract must delegate to the service administrator clear authority to administer and 
40.34 	manage the delivery of the service pursuant to council management policies and must 
41.1 	establish performance and compliance standards for the service administrator. The council 
41.2 	may provide directly day to day administration and management of the service and may 
41.3 	own or lease vehicles used to provide the service.
41.4 	(c) The council shall ensure that the service administrator establishes a system for 
41.5 	registering and expeditiously responding to complaints by users, informing users of how 
41.6 	to register complaints, and requiring providers to report on incidents that impair the safety 
41.7 	and well-being of users or the quality of the service. 
41.8 	(d) The council shall annually report to the commissioner of transportation and the 
41.9 	legislature on complaints and provider reports, the response of the service administrator, 
41.10 	and steps taken by the council and the service administrator to identify causes and provide 
41.11 	remedies to recurring problems on its special transportation services as part of the program 
41.12 	evaluation provided for in section 473.13, subdivision 1a.
41.13 	(d) Each year before renewing contracts with providers and the service administrator, 
41.14 	the council shall provide an opportunity for the transportation accessibility advisory 
41.15 	committee, users, and other interested persons to testify before the council concerning 
41.16 	providers, contract terms, and other matters relating to council policies and procedures for 
41.17 	implementing the service.
41.18 	(e) The council shall establish a Transportation Accessibility Advisory Committee
41.19 	consisting of 15 members and a chair to advise the council on management policies for 
41.20 	the council's special transportation service. The Transportation Accessibility Advisory 
41.21 	Committee must include elderly and disabled persons, other users of special transportation 
41.22 	service, representatives of persons contracting to provide special transportation services,
41.23 	and representatives of appropriate agencies for elderly and disabled persons to advise 
41.24 	the council on management policies for the service. At least half the Transportation 
41.25 	Accessibility Advisory Committee members must be disabled or elderly persons or 
41.26 	the representatives of disabled or elderly persons. Two of the appointments to the 
41.27 	Transportation Accessibility Advisory Committee shall be made by the Council on 
41.28 	Disability in consultation with the chair of the Metropolitan Council persons who are both 
41.29 	certified under the Americans with Disabilities Act (ADA) and users of public transit 
41.30 	in the metropolitan area.

41.31 	Sec. 13. Minnesota Statutes 2006, section 473.386, subdivision 2a, is amended to read:
41.32 		Subd. 2a.Eligibility certification application and verification; penalty for 
41.33 	fraudulent certification. If the council requires a person to be certified as eligible for 
41.34 	special transportation services, an applicant for certification must submit an application 
42.1 	form and the applicant's eligibility must be verified by a type of professional specified by 
42.2 	the council. The council shall include the notice of penalty for fraudulent certification, and:
42.3 	(1) require the applicant to sign the application form and certify that the application 
42.4 	information is accurate; and
42.5 	(2) require the person certifyingverifying the applicantapplicant's eligibility to sign 
42.6 	the eligibility certificationverification form and the applicant to sign the application form, 
42.7 	as provided in section 174.295 certify that the verifying information is accurate. 
42.8 	The penalty provided for in section 174.295, subdivision 4, applies to the 
42.9 	certifications by the applicant and the person verifying the applicant's eligibility. The 
42.10 	council must include a notice of the penalty for fraudulent certification in the application 
42.11 	form and the eligibility verification form.

42.12 	Sec. 14. Minnesota Statutes 2006, section 473.386, subdivision 3, is amended to read:
42.13 		Subd. 3.Duties of council. In implementing the special transportation service, the 
42.14 	council shall:
42.15 	(a) encourage participation in the service by public, private, and private nonprofit 
42.16 	providers of special transportation currently receiving capital or operating assistance 
42.17 	from a public agency;
42.18 	(b) when feasible and cost-efficient, contract with public, private, and private 
42.19 	nonprofit providers that have demonstrated their ability to effectively provide service at 
42.20 	a reasonable cost;
42.21 	(c) encourage individuals using special transportation to use the type of service 
42.22 	most appropriate to their particular needs;
42.23 	(d) ensure that all persons providing special transportation service receive equitable 
42.24 	treatment in the allocation of the ridership;
42.25 	(e)(d) encourage shared rides to the greatest extent practicable;
42.26 	(f)(e) encourage public agencies that provide transportation to eligible individuals 
42.27 	as a component of human services and educational programs to coordinate with this 
42.28 	service and to allow reimbursement for transportation provided through the service at rates 
42.29 	that reflect the public cost of providing that transportation;
42.30 	(g)(f) establish criteria to be used in determining individual eligibility for special 
42.31 	transportation services;
42.32 	(h)(g) consult with the Transportation Accessibility Advisory Committee in a 
42.33 	timely manner before changes are made in the provision of special transportation services, 
42.34 	including, but not limited to, changes in policies affecting the matters subject to hearing 
42.35 	under subdivision 2;
43.1 	(i)(h) provide for effective administration and enforcement of council policies 
43.2 	and standards; and
43.3 	(j) annually evaluate providers of special transportation service to ensure compliance 
43.4 	with the standards established for the program; and
43.5 	(k)(i) ensure that, taken as a whole including contracts with public, private, and 
43.6 	private nonprofit providers, the geographic coverage area of the special transportation 
43.7 	service is continuous within the boundaries of the transit taxing district, as defined as of 
43.8 	March 1, 2006, in section 473.446, subdivision 2.

43.9 	Sec. 15. Minnesota Statutes 2006, section 473.39, is amended by adding a subdivision 
43.10 	to read:
43.11 		Subd. 1m.OBLIGATIONS. After July 1, 2007, in addition to other authority in 
43.12 	this section, the council may issue certificates of indebtedness, bonds, or other obligations 
43.13 	under this section in an amount not exceeding $44,000,000 for capital expenditures as 
43.14 	prescribed in the council's regional transit master plan and transit capital improvement 
43.15 	program and for related costs, including the costs of issuance and sale of the obligations.

43.16 	Sec. 16. Minnesota Statutes 2006, section 473.399, is amended to read:
43.17 	473.399 TRANSIT WAYS; LIGHT RAIL TRANSIT AND COMMUTER RAIL 
43.18 	PLANNING IN METROPOLITAN AREA.
43.19 		Subdivision 1.General requirements. (a) The council must identify in its 
43.20 	transportation policy plan those heavily traveled corridors where development of a transit 
43.21 	way may be feasible and cost-effective. Modes of providing service in a transit way may 
43.22 	include bus rapid transit, light rail transit, commuter rail, or other available systems or 
43.23 	technologies that improve transit service.
43.24 	(b) After the completion of environmental studies and receipt of input from the 
43.25 	governing body of each statutory and home rule charter city, county, and town in which a 
43.26 	transit way is proposed to be constructed, the council must designate the locally preferred 
43.27 	alternative transit mode with respect to the corridor.
43.28 	(c) The council shall adopt a plan to ensure that any light rail transit facilities
43.29 	that are designated as the locally preferred alternative and that are to be constructed in 
43.30 	the metropolitan area will be acquired, developed, owned, and capable of operation in 
43.31 	an efficient, cost-effective, and coordinated manner in coordination with buses and other 
43.32 	transportation modes and facilities. The plan may be developed and adopted in phases 
43.33 	corresponding to phasing of construction of light rail. The council may incorporate into its 
44.1 	plan appropriate elements of the plans of regional railroad authorities in order to avoid 
44.2 	duplication of effort.
44.3 	(b) The light rail transit plan or first phase of the plan required by this section must 
44.4 	be adopted by the council before the commissioner of transportation may begin (d)
44.5 	Construction of light rail transit facilities in a particular transit corridor may not commence 
44.6 	unless and until that mode is designated as the locally preferred alternative for that corridor 
44.7 	by the council. Following adoption of the plan, the commissioner of transportation shall 
44.8 	act in conformity with the plan. The commissioner shall prepare or amend the final design 
44.9 	plans as necessary to make the plans consistent with the light rail transit plan.
44.10 	(c) Throughout the development and implementation of the plan, the council shall 
44.11 	contract for or otherwise obtain engineering services to assure that the plan adequately 
44.12 	addresses the technical aspects of light rail transit.
44.13 		Subd. 1a.Integrated transportation system. The commissioner of transportation 
44.14 	and the Metropolitan Council shall ensure that the light rail transit and commuter rail 
44.15 	facilities are planned, designed, and implemented: (1) to move commuters and transit 
44.16 	users into and out of, as well as within, the metropolitan area, and (2) to ensure that rail 
44.17 	transit lines will interface with each other and other transportation facilities and services 
44.18 	so as to provide a unified, integrated, and efficient multimodal transportation system.
44.19 		Subd. 4.Expenditure of state funds. No state funds may be expended by the 
44.20 	Metropolitan Council to study a particular light rail transit or commuter rail facility unless 
44.21 	the funds are appropriated in legislation that identifies the route, including the origin 
44.22 	and destination.

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

44.24 	Sec. 17. Minnesota Statutes 2006, section 473.3993, subdivision 3, is amended to read:
44.25 		Subd. 3.Final design plan. "Final design plan" means a light rail transit plan that 
44.26 	includes the items in the preliminary design plan and the preliminary engineering plan for 
44.27 	the facilities proposed but with greater detail and specificity needed for construction. The 
44.28 	final design plan must include, at a minimum:
44.29 	(1) final plans for the physical design of facilities, including the right-of-way 
44.30 	definition; environmental impacts and mitigation measures; intermodal coordination with 
44.31 	bus operations and routes; and civil engineering plans for vehicles, track, stations, parking, 
44.32 	and access, including disability access; and
44.33 	(2) final plans for civil engineering for electrification, communication, and other 
44.34 	similar facilities; operational rules, procedures, and strategies; capital costs; ridership; 
45.1 	operating costs and revenues, and sources of funds for operating subsidies; financing for 
45.2 	construction and operation; an implementation method; and other similar matters.
45.3 	The final design plan must be stated with sufficient particularity and detail to 
45.4 	allow the proposer to begin the acquisition and construction of operable facilities. If a 
45.5 	design-build implementation method is proposed, instead of civil engineering plans the 
45.6 	final design plan must state detailed design criteria and performance standards for the 
45.7 	facilities.
45.8 	The commissioner of transportation may use A design-build method of project 
45.9 	development and construction may be utilized for construction of light rail transit. 
45.10 	Notwithstanding any law to the contrary, the commissioner may award a design-build 
45.11 	contract may be awarded on the basis of requests for proposals or requests for qualifications 
45.12 	without bids. "Design-build method of project development and construction" means a 
45.13 	project delivery system in which a single contractor is responsible for both the design and 
45.14 	construction of the project and bids the design and construction together.

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

45.16 	Sec. 18. Minnesota Statutes 2006, section 473.3994, is amended to read:
45.17 	473.3994 LIGHT RAIL TRANSIT; DESIGN PLANS.
45.18 		Subd. 1a.Designation of responsible authority. For each proposed light rail transit 
45.19 	facility in the metropolitan area, the governor must designate either the Metropolitan 
45.20 	Council or the state of Minnesota acting through the commissioner of transportation as 
45.21 	the entity responsible for planning, designing, acquiring, constructing, and equipping the 
45.22 	facility. For the purposes of this section and section 473.3997, the term "responsible 
45.23 	authority" means the entity designated by the governor for a particular light rail transit 
45.24 	facility. Notwithstanding such designation, the commissioner and the council may 
45.25 	enter into one or more cooperative agreements with respect to the planning, designing, 
45.26 	acquiring, constructing, or equipping of a particular light rail transit facility that provide 
45.27 	for the parties to exercise their respective authorities in support of the project in a manner 
45.28 	that best serves the project and the public.
45.29 		Subd. 2.Preliminary design plans; public hearing. Before final design plans are 
45.30 	prepared for a light rail transit facility in the metropolitan area, the commissioner of 
45.31 	transportation responsible authority and the regional railroad authority or authorities 
45.32 	in whose jurisdiction the line or lines are located must hold a public hearing on the 
45.33 	physical design component of the preliminary design plans. The commissioner of 
45.34 	transportation responsible authority and the regional railroad authority or authorities in 
46.1 	whose jurisdiction the line or lines are located must provide appropriate public notice of 
46.2 	the hearing and publicity to ensure that affected parties have an opportunity to present 
46.3 	their views at the hearing. The commissioner responsible authority shall summarize the 
46.4 	proceedings and testimony and maintain the record of a hearing held under this section, 
46.5 	including any written statements submitted.
46.6 		Subd. 3.Preliminary design plans; local approval. (a) At least 30 days before 
46.7 	the hearing under subdivision 2, the commissioner of transportation responsible authority
46.8 	shall submit the physical design component of the preliminary design plans to the 
46.9 	governing body of each statutory and home rule charter city, county, and town in which 
46.10 	the route is proposed to be located. The city, county, or town shall hold a public hearing. 
46.11 	Within 45 days after the hearing under subdivision 2, the city, county, or town shall review 
46.12 	and approve or disapprove the plans for the route to be located in the city, county, or town. 
46.13 	A local unit of government that disapproves the plans shall describe specific amendments 
46.14 	to the plans that, if adopted, would cause the local unit to withdraw its disapproval. Failure 
46.15 	to approve or disapprove the plans in writing within 45 days after the hearing is deemed 
46.16 	to be approval, unless an extension of time is agreed to by the city, county, or town and 
46.17 	the commissioner of transportation responsible authority.
46.18 		Subd. 4.Preliminary design plans; council referral. If the governing body of 
46.19 	one or more cities, counties, or towns disapproves the preliminary design plans within 
46.20 	the period allowed under subdivision 3, the commissioner of transportation may refer the 
46.21 	plans, along with any comments of local jurisdictions, to the Metropolitan Council. The
46.22 	council shall hold a hearing on the plans, giving the commissioner of transportation, if the 
46.23 	responsible authority, any disapproving local governmental units, and other persons an 
46.24 	opportunity to present their views on the plans. The council may conduct independent 
46.25 	study as it deems desirable and may mediate and attempt to resolve disagreements about 
46.26 	the plans. Within 90 60 days after the referral hearing, the council shall review the 
46.27 	plans submitted by the commissioner of transportation and the council and shall decide 
46.28 	what amendments to the plans, if any, must be made to accommodate the objections 
46.29 	presented by the disapproving local governmental units. The commissioner shall make the
46.30 	Amendments to the plans as decided by the council must be made before continuing the 
46.31 	planning and designing process.
46.32 		Subd. 5.Final design plans. (a) If the final design plans incorporate a substantial 
46.33 	change from the preliminary design plans with respect to location, length, or termini 
46.34 	of routes; general dimension, elevation, or alignment of routes and crossings; location 
46.35 	of tracks above ground, below ground, or at ground level; or station locations, before 
46.36 	beginning construction, the commissioner responsible party shall submit the changed 
47.1 	component of the final design plans to the governing body of each statutory and home 
47.2 	rule city, county, and town in which the changed component is proposed to be located. 
47.3 	Within 60 days after the submission of the plans, the city, county, or town shall review 
47.4 	and approve or disapprove the changed component located in the city, county, or town. A 
47.5 	local unit of government that disapproves the change shall describe specific amendments 
47.6 	to the plans that, if adopted, would cause the local unit to withdraw its disapproval. 
47.7 	Failure to approve or disapprove the changed plans in writing within the time period is 
47.8 	deemed to be approval, unless an extension is agreed to by the city, county, or town and 
47.9 	the commissioner responsible authority.
47.10 	(b) If the governing body of one or more cities, counties, or towns disapproves the 
47.11 	changed plans within the period allowed under paragraph (a), the commissioner may refer 
47.12 	the plans, along with any comments of local jurisdictions, to the Metropolitan Council. 
47.13 	The council shall review the final design plans under the same procedure and with the 
47.14 	same effect as provided in subdivision 4 for preliminary design plans.
47.15 		Subd. 7.Council review. If the commissioner is the responsible authority, before 
47.16 	proceeding with construction of a light rail transit facility, the commissioner must submit 
47.17 	preliminary and final design plans to the Metropolitan Council. The council must review 
47.18 	the plans for consistency with the council's development guide and approve the plans.
47.19 		Subd. 8.Metropolitan significance. This section does not diminish or replace the 
47.20 	authority of the council under section 473.173. 
47.21 		Subd. 9.Light rail transit operating costs. (a) Before submitting an application for 
47.22 	federal assistance for light rail transit facilities in the metropolitan area, the applicant must 
47.23 	provide to the Metropolitan Council estimates must prepare an estimate of the amount 
47.24 	of operating subsidy which will be required to operate light rail transit in the corridor to 
47.25 	which the federal assistance would be applied. The information provided to the council
47.26 	estimate must indicate the amount of operating subsidy estimated to be required in each 
47.27 	of the first ten years of operation of the light rail transit facility. If the commissioner of 
47.28 	transportation is the responsible authority, the commissioner must provide information 
47.29 	requested by the council that is necessary to make the estimate.
47.30 	(b) The council must review and evaluate the information provided estimate 
47.31 	developed under paragraph (a) with regard to the effect of operating the light rail transit 
47.32 	facility on the currently available mechanisms for financing transit in the metropolitan area.
47.33 		Subd. 10.Corridor Management Committee. (a) The responsible authority 
47.34 	must establish a Corridor Management Committee shall be established to advise the 
47.35 	commissioner of transportation responsible authority in the design and construction of 
48.1 	light rail transit in each corridor to be constructed. The Corridor Management Committee
48.2 	for each corridor shall consist of the following members:
48.3 	(1) one member appointed by each city and county in which the corridor is located;
48.4 	(2) the commissioner of transportation or a designee of the commissioner;
48.5 	(3) two members appointed by the Metropolitan Council, one of whom shall be 
48.6 	designated as the chair of the committee;
48.7 	(4) one member appointed by the Metropolitan Airports Commission, if the 
48.8 	designated corridor provides direct service to the Minneapolis-St. Paul International 
48.9 	Airport; and
48.10 	(5) one member appointed by the president of the University of Minnesota, if the 
48.11 	designated corridor provides direct service to the university.
48.12 	(b) The Corridor Management Committee shall advise the commissioner of 
48.13 	transportation responsible authority on issues relating to the alternatives analysis,
48.14 	environmental review, preliminary design, preliminary engineering, final design, 
48.15 	implementation method, and construction of light rail transit in the corridor.
48.16 		Subd. 13.Dispute resolution. In the event of a dispute between any of the parties 
48.17 	arising from the parties' respective authority and responsibility under this section, the 
48.18 	dispute shall be submitted to the Metropolitan Council for final resolution by any party to 
48.19 	the dispute. The Metropolitan Council shall establish by July 1, 1993, a process to ensure 
48.20 	a prompt and speedy resolution of the dispute. This process shall allow the parties to 
48.21 	provide evidence and testimony in support of their positions.
48.22 		Subd. 14.Transfer of facility after construction. If the commissioner of 
48.23 	transportation is the responsible authority for a particular light rail transit facility, the 
48.24 	commissioner must transfer to the Metropolitan Council all facilities constructed and 
48.25 	all equipment and property acquired in developing the facility upon completion of 
48.26 	construction.

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

48.28 	Sec. 19. Minnesota Statutes 2006, section 473.3997, is amended to read:
48.29 	473.3997 FEDERAL FUNDING; LIGHT RAIL TRANSIT.
48.30 	(a) Upon completion of the alternatives analysis and draft environmental impact 
48.31 	statement, and selection of the locally preferred alternative, for the central corridor 
48.32 	transit improvement project each light rail transit facility, the council, the commissioner 
48.33 	of transportation, and the affected regional rail authorities responsible authority may 
48.34 	prepare a joint an application for federal assistance for the light rail transit facilities in the 
49.1 	metropolitan area facility. If the commissioner is the responsible authority, the application 
49.2 	must be reviewed and approved by the Metropolitan Council before it is submitted by the 
49.3 	council and the commissioner. In reviewing the application the council must consider the 
49.4 	information submitted to it operating cost estimate developed under section 473.3994, 
49.5 	subdivision 9. 
49.6 	(b) Until the application described in paragraph (a) is submitted Except for the 
49.7 	designated responsible authority for a particular light rail transit facility, no political 
49.8 	subdivision in the metropolitan area may on its own apply for federal assistance for light 
49.9 	rail transit planning or construction.

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

49.11 	Sec. 20. [473.3999] LIGHT RAIL TRANSIT CONSTRUCTION IN THE 
49.12 	METROPOLITAN AREA; COUNCIL AUTHORITY.
49.13 	The Metropolitan Council may exercise the powers granted in this chapter and in 
49.14 	other applicable law, as necessary, to plan, design, acquire, construct, and equip light rail 
49.15 	transit facilities in the metropolitan area as defined in section 473.121, subdivision 2.

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

49.17 	Sec. 21. Minnesota Statutes 2006, section 473.4051, is amended to read:
49.18 	473.4051 LIGHT RAIL TRANSIT OPERATION.
49.19 	The council shall operate all light rail transit facilities and services located in the 
49.20 	metropolitan area upon completion of construction of the facilities and the commencement 
49.21 	of revenue service using the facilities. The commissioner of transportation and the council 
49.22 	may not allow the commencement of revenue service until after an appropriate period of 
49.23 	acceptance testing to ensure safe and satisfactory performance. In assuming the operation 
49.24 	of the system, the council must comply with section 473.415. The council shall coordinate 
49.25 	operation of the light rail transit system with bus service to avoid duplication of service 
49.26 	on a route served by light rail transit and to ensure the widest possible access to light rail 
49.27 	transit lines in both suburban and urban areas by means of a feeder bus system. 

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

49.29 	Sec. 22. Minnesota Statutes 2006, section 473.407, subdivision 1, is amended to read:
49.30 		Subdivision 1.Authorization. The council may appoint peace officers, as defined 
49.31 	in section 626.84, subdivision 1, paragraph (c), and establish a law enforcement agency, 
50.1 	as defined in section 626.84, subdivision 1, paragraph (f), known as the Metropolitan 
50.2 	Transit Police, to police its transit property and routes, to carry out investigations, and to 
50.3 	make arrests under sections 629.30 and 629.34. The jurisdiction of the law enforcement 
50.4 	agency is limited to offenses relating to council transit property, equipment, employees, 
50.5 	and passengers.  The jurisdiction of the Metropolitan Transit Police includes traffic lanes 
50.6 	designed for bus or transit use, freeway or expressway shoulders in the seven-county 
50.7 	metropolitan area used by authorized transit buses and metro mobility buses under section 
50.8 	169.306, and high-occupancy vehicle lanes used by transit buses. Upon request from, or 
50.9 	under an agreement with, any law enforcement agency and subject to the availability of 
50.10 	its personnel and other resources, the Metropolitan Transit Police may exercise general 
50.11 	law enforcement agency authority to assist any law enforcement agency in implementing 
50.12 	or carrying out law enforcement activities, programs, or initiatives. If the commissioner 
50.13 	of transportation contracts with the Metropolitan Council for operation of commuter rail 
50.14 	facilities under section 174.90, the jurisdiction of the Metropolitan Transit Police extends 
50.15 	to offenses relating to the operation, property, facilities, equipment, employees, and 
50.16 	passengers of the commuter rail facilities located in and outside of the metropolitan area.

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

50.18 	Sec. 23. Minnesota Statutes 2006, section 473.446, subdivision 2, is amended to read:
50.19 		Subd. 2.Transit taxing district. The metropolitan transit taxing district is hereby 
50.20 	designated as that portion of the metropolitan transit area lying within the following 
50.21 	named cities, towns, or unorganized territory within the counties indicated:
50.22 	(a) Anoka County. Anoka, Blaine, Centerville, Columbia Heights, Coon Rapids, 
50.23 	Fridley, Circle Pines, Hilltop, Lexington, Lino Lakes, Spring Lake Park;
50.24 	(b) Carver County. Chanhassen, the city of Chaska;
50.25 	(c) Dakota County. Apple Valley, Burnsville, Eagan, Inver Grove Heights, Lilydale, 
50.26 	Mendota, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake, West St. Paul;
50.27 	(d) Ramsey County. All of the territory within Ramsey County;
50.28 	(e) Hennepin County. Bloomington, Brooklyn Center, Brooklyn Park, Champlin, 
50.29 	Chanhassen, Crystal, Deephaven, Eden Prairie, Edina, Excelsior, Golden Valley, 
50.30 	Greenwood, Hopkins, Long Lake, Maple Grove, Medicine Lake, Minneapolis, 
50.31 	Minnetonka, Minnetonka Beach, Mound, New Hope, Orono, Osseo, Plymouth, Richfield, 
50.32 	Robbinsdale, St. Anthony, St. Louis Park, Shorewood, Spring Park, Tonka Bay, Wayzata, 
50.33 	Woodland, the unorganized territory of Hennepin County;
50.34 	(f) Scott County. Prior Lake, Savage, Shakopee;
51.1 	(g) Washington County. Baytown, the city of Stillwater, White Bear Lake, Bayport, 
51.2 	Birchwood, Cottage Grove, Dellwood, Lake Elmo, Landfall, Mahtomedi, Newport, 
51.3 	Oakdale, Oak Park Heights, Pine Springs, St. Paul Park, Willernie, Woodbury means the 
51.4 	metropolitan area.
51.5 	The Metropolitan Council in its sole discretion may provide transit service by 
51.6 	contract beyond the boundaries of the metropolitan transit taxing district or to cities and 
51.7 	towns within the taxing district which are receiving financial assistance under section 
51.8 	473.388, upon petition therefor by an interested city, township or political subdivision 
51.9 	within the metropolitan transit area. The Metropolitan Council may establish such 
51.10 	terms and conditions as it deems necessary and advisable for providing the transit 
51.11 	service, including such combination of fares and direct payments by the petitioner as 
51.12 	will compensate the council for the full capital and operating cost of the service and the 
51.13 	related administrative activities of the council. The amount of the levy made by any 
51.14 	municipality to pay for the service shall be disregarded when calculation of levies subject 
51.15 	to limitations is made, provided that cities and towns receiving financial assistance under 
51.16 	section 473.388 shall not make a special levy under this subdivision without having first 
51.17 	exhausted the available local transit funds as defined in section 473.388. The council shall 
51.18 	not be obligated to extend service beyond the boundaries of the taxing district, or to cities 
51.19 	and towns within the taxing district which are receiving financial assistance under section 
51.20 	473.388, under any law or contract unless or until payment therefor is received. 

51.21 	EFFECTIVE DATE. This section is effective July 1, 2007.

51.22 	Sec. 24. Minnesota Statutes 2006, section 473.446, subdivision 8, is amended to read:
51.23 		Subd. 8.State review. The commissioner of revenue shall certify the council's levy 
51.24 	limitation under this section to the council by August 1 of the levy year. The council 
51.25 	must certify its proposed property tax levy under this section to the commissioner of 
51.26 	revenue by September 1 of the levy year. The commissioner of revenue shall annually 
51.27 	determine whether the property tax for transit purposes certified by the council for levy 
51.28 	following the adoption of its proposed budget is within the levy limitation imposed by 
51.29 	subdivisionssubdivision 1 and 1b. Thecommissioner shall also annually determine 
51.30 	whether the transit tax imposed on all taxable property within the metropolitan transit area 
51.31 	but outside of the metropolitan transit taxing district is within the levy limitation imposed 
51.32 	by subdivision 1a. The determination must be completed prior to September 10 of each 
51.33 	year. If current information regarding market valuation in any county is not transmitted to 
51.34 	the commissioner in a timely manner, the commissioner may estimate the current market 
51.35 	valuation within that county for purposes of making the calculations.

52.1 	EFFECTIVE DATE. This section is effective July 1, 2007.

52.2 	Sec. 25. Minnesota Statutes 2006, section 609.531, subdivision 1, is amended to read:
52.3 		Subdivision 1.Definitions. For the purpose of sections 609.531 to 609.5318, the 
52.4 	following terms have the meanings given them.
52.5 	(a) "Conveyance device" means a device used for transportation and includes, but 
52.6 	is not limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any 
52.7 	equipment attached to it. The term "conveyance device" does not include property which 
52.8 	is, in fact, itself stolen or taken in violation of the law.
52.9 	(b) "Weapon used" means a dangerous weapon as defined under section 609.02, 
52.10 	subdivision 6, that the actor used or had in possession in furtherance of a crime.
52.11 	(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).
52.12 	(d) "Contraband" means property which is illegal to possess under Minnesota law.
52.13 	(e) "Appropriate agency" means the Bureau of Criminal Apprehension, the 
52.14 	Minnesota Division of Driver and Vehicle Services, the Minnesota State Patrol, a 
52.15 	county sheriff's department, the Three Rivers Park District park rangers, the Department 
52.16 	of Natural Resources Division of Enforcement, the University of Minnesota Police 
52.17 	Department, the Department of Corrections' Fugitive Apprehension Unit, or a city, 
52.18 	metropolitan transit,  or airport police department.
52.19 	(f) "Designated offense" includes:
52.20 	(1) for weapons used: any violation of this chapter, chapter 152, or chapter 624;
52.21 	(2) for driver's license or identification card transactions: any violation of section 
52.22 	171.22; and
52.23 	(3) for all other purposes: a felony violation of, or a felony-level attempt or 
52.24 	conspiracy to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.21; 
52.25 	609.221; 609.222; 609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.282; 
52.26 	609.283; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1, 
52.27 	clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j); 609.345, 
52.28 	subdivision 1, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466; 
52.29 	609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561; 
52.30 	609.562; 609.563; 609.582; 609.59; 609.595; 609.631; 609.66, subdivision 1e; 609.671, 
52.31 	subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88; 609.89; 
52.32 	609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation of 
52.33 	section 609.891 or 624.7181; or any violation of section 609.324.
52.34 	(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

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

53.1 	Sec. 26. NORTHSTAR CORRIDOR COMMUTER RAIL STATION.
 53.2 	The commissioner of transportation shall incorporate a station located in the city 
53.3 	of Fridley in final design plans and construction of the Northstar Corridor Commuter 
53.4 	Rail Line.

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

53.6 	Sec. 27. APPLICATION.
 53.7 	Sections 9 to 24 apply in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
53.8 	Scott, and Washington.

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

53.10 	Sec. 28.  REPEALER.
 53.11 	Minnesota Statutes 2006, sections 473.123, subdivision 3d; 473.1465; and 473.4461,
53.12 	are repealed.
53.13 	(b) Laws 1999, chapter 230, section 44, is repealed.