Bill Text: MN HF1284 | 2011-2012 | 87th Legislature | Engrossed

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Bill Title: Omnibus transportation policy bill.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2012-04-28 - Laid on table [HF1284 Detail]

Download: Minnesota-2011-HF1284-Engrossed.html

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A bill for an act

relating to transportation; modifying provisions governing transportation and
public safety policies, including bicycles and bikeways, highways and bridges,
motor vehicles, motor vehicle markings and equipment, traffic regulations,
driver education, driver licensing, driver's license exemptions, DWI violations,
alternative financing for transportation projects, contracting requirements, bus
operations, railroads, motor carriers and commercial drivers, aeronautics and
airports, and agency reporting; providing for rulemaking; removing obsolete
language; making technical and clarifying changes; repealing certain provisions;
appropriating money;amending Minnesota Statutes 2010, sections 85.015, by
adding a subdivision; 85.018, subdivisions 2, 4; 160.263, subdivision 2; 160.845;
160.93, subdivisions 1, 2; 161.14, subdivision 66, by adding subdivisions;
161.321; 161.3212; 162.09, by adding a subdivision; 162.13, subdivision 1;
162.18, subdivisions 1, 4; 168.002, subdivisions 19, 20; 168.012, subdivision
1, by adding a subdivision; 168.013, by adding a subdivision; 168A.03,
subdivision 1; 168B.011, subdivision 12; 169.011, subdivisions 4, 27, 44, 45;
169.035, subdivision 1, by adding a subdivision; 169.04; 169.06, subdivisions
5, 7; 169.19, subdivision 5; 169.222, subdivisions 4, 7, by adding subdivisions;
169.223, subdivisions 1, 5; 169.306; 169.64, subdivision 2; 169.685, subdivision
6; 169.79, subdivision 6; 169.86, subdivision 4; 169.99, subdivision 1b;
169A.54, subdivisions 1, 6; 171.01, subdivision 41; 171.03; 171.061, subdivision
4; 171.12, subdivision 6; 171.30, subdivision 1; 171.306, subdivision 4; 174.02,
by adding a subdivision; 174.56; 221.0314, subdivision 3a; 222.50, subdivision
4; 222.51; 222.53; 222.63, subdivision 9; 574.26, subdivisions 1a, 2; Minnesota
Statutes 2011 Supplement, sections 162.12, subdivision 1; 168.12, subdivision 5;
169.86, subdivision 5; 171.05, subdivision 2; 171.075, subdivision 1; proposing
coding for new law in Minnesota Statutes, chapters 160; 171; repealing
Minnesota Statutes 2010, sections 161.08, subdivision 2; 168.012, subdivision
1b; 169A.54, subdivision 5; 222.48, subdivision 3a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2010, section 85.015, is amended by adding a
subdivision to read:
    Subd. 1d. Bicycle use of trails. The commissioner may not prohibit or otherwise
restrict operation of an electric-assisted bicycle, as defined in section 169.011, subdivision
27, on any trail under this section for which bicycle use is permitted, unless the
commissioner determines that operation of the electric-assisted bicycle is not consistent
with (1) the safety or general welfare of trail users; or (2) the terms of any property
conveyance.

    Sec. 2. Minnesota Statutes 2010, section 85.018, subdivision 2, is amended to read:
    Subd. 2. Authority of local government. (a) A local government unit that receives
state grants-in-aid for any trail, with the concurrence of the commissioner, and the
landowner or land lessee, may:
(1) designate the trail for use by snowmobiles or for nonmotorized use from
December 1 to April 1 of any year; and
(2) issue any permit required under subdivisions 3 to 5.
(b) A local government unit that receives state grants-in-aid under section 84.794,
subdivision 2 , 84.803, subdivision 2, or 84.927, subdivision 2, for any trail, with the
concurrence of the commissioner, and landowner or land lessee, may:
(1) designate the trail specifically for use at various times of the year by all-terrain or
off-road vehicles or off-highway motorcycles, for nonmotorized use such as ski touring,
snowshoeing, and hiking, and for multiple use, but not for motorized and nonmotorized
use at the same time; and
(2) issue any permit required under subdivisions 3 to 5.
(c) A local unit of government that receives state grants-in-aid for any trail, with the
concurrence of the commissioner and landowner or land lessee, may designate certain
trails for joint use by snowmobiles, off-highway motorcycles, all-terrain vehicles, and
off-road vehicles.
(d) A local unit of government may not prohibit or otherwise restrict operation of an
electric-assisted bicycle, as defined in section 169.011, subdivision 27, on any trail under
this section designated for bicycle use or nonmotorized use that includes bicycles, unless
the local unit of government determines that operation of the electric-assisted bicycle is
not consistent with (1) the safety or general welfare of trail users; or (2) the terms of
any property conveyance.

    Sec. 3. Minnesota Statutes 2010, section 85.018, subdivision 4, is amended to read:
    Subd. 4. Nonmotorized use trails. No motorized vehicle shall be operated on a
trail designated for nonmotorized use. This subdivision does not apply to (1) motorized
wheelchairs or other motorized devices operated by an individual who is physically
disabled or (2) electric-assisted bicycles, as defined in section 169.011, subdivision 27.

    Sec. 4. Minnesota Statutes 2010, section 160.263, subdivision 2, is amended to read:
    Subd. 2. Powers of political subdivisions. (a) The governing body of any political
subdivision may by ordinance or resolution:
(1) designate any roadway or shoulder or portion thereof under its jurisdiction as
a bicycle lane or bicycle route;
(2) designate any sidewalk or portion thereof under its jurisdiction as a bicycle path
provided that the designation does not destroy a pedestrian way or pedestrian access;
(3) develop and designate bicycle paths;
(4) designate as bikeways all bicycle lanes, bicycle routes, and bicycle paths.
(b) A governing body may not prohibit or otherwise restrict operation of an
electric-assisted bicycle, as defined in section 169.011, subdivision 27, on any bikeway,
roadway, or shoulder, unless the governing body determines that operation of the
electric-assisted bicycle is not consistent with (1) the safety or general welfare of bikeway,
roadway, or shoulder users; or (2) the terms of any property conveyance.

    Sec. 5. [160.266] MISSISSIPPI RIVER TRAIL.
    Subdivision 1. Definitions. For the purposes of this section:
(1) "bicycle path" has the meaning given in section 169.011, subdivision 6; and
(2) "bikeway" has the meaning given in section 169.011, subdivision 9.
    Subd. 2. Creation. The commissioner, in cooperation with road and trail authorities
including the commissioner of natural resources, shall identify a bikeway that originates at
Itasca State Park in Clearwater, Beltrami, and Hubbard Counties, then generally parallels
the Mississippi River through the cities of Bemidji in Beltrami County, Grand Rapids in
Itasca County, Brainerd in Crow Wing County, Little Falls in Morrison County, Sauk
Rapids in Benton County, St. Cloud in Stearns County, Minneapolis in Hennepin County,
St. Paul in Ramsey County, Hastings in Dakota County, Red Wing in Goodhue County,
Wabasha in Wabasha County, Winona in Winona County, and La Crescent in Houston
County to Minnesota's boundary with Iowa and there terminates. Where opportunities
exist, the bikeway may be designated on both sides of the Mississippi River.
    Subd. 3. Connections with other bikeways. (a) The commissioner, in cooperation
with road and trail authorities including the commissioner of natural resources, shall:
(1) identify existing bikeways of regional significance that are in reasonable
proximity but not connected to the bikeway established in this section, including but not
limited to the Lake Wobegon Trail in the counties of Stearns and Todd; and
(2) support development of linkages between bikeways identified under clause (1)
and the bikeway established in this section.
(b) The requirements of this subdivision are a secondary priority for use of funds
available under this section following establishment and enhancement of the bikeway
under subdivision 1.
    Subd. 4. Cooperation with other entities. The commissioner may contract and
enter into agreements with federal agencies, other state agencies, local governments, and
private entities to establish, develop, maintain, and operate the bikeway and to interpret
associated natural and cultural resources.
    Subd. 5. Funding. Bicycle paths included within the bikeway and not administered
by the commissioner of natural resources are eligible for funding from the environment
and natural resources trust fund under chapter 116P, from the parks and trails grant
program under section 85.535, from the local recreation grants program under section
85.019, subdivision 4b, and from other sources.

    Sec. 6. Minnesota Statutes 2010, section 160.845, is amended to read:
160.845 RESTRICTIONS ON TOLL FACILITY.
    (a) A road authority, including the governing body of a city, or a private operator
may not convert, transfer, or utilize any portion of a highway to impose tolls or for use
as a toll facility. A road authority, including the governing body of a city, or a private
operator may not limit operation of a commercial motor vehicle, as defined in section
169.011, subdivision 16 , to a toll facility or otherwise require that a commercial motor
vehicle use the tolled portion of a highway.
    (b) This section does not apply to (1) any toll facility or high-occupancy vehicle
lane constructed, converted, or established before September 1, 2007, (2) any additional
lane, including a priced dynamic shoulder lane, high-occupancy vehicle lane, or
high-occupancy toll lane, added to a highway after September 1, 2007, and (3) any other
general purpose lane that adds capacity, (4) any lane that adds capacity that is operated
temporarily as a general purpose or auxiliary lane until the commissioner converts the
lane to a high-occupancy toll lane, and (5) any general purpose or auxiliary lane that the
commissioner converts to a high-occupancy toll lane, except that the commissioner may
convert a general purpose lane only after adding capacity in the same segment of highway
if that segment of highway has been designated pursuant to section 160.93 as a MnPASS
corridor in the department's metro district highway investment plan.

    Sec. 7. Minnesota Statutes 2010, section 160.93, subdivision 1, is amended to read:
    Subdivision 1. Fees authorized. To improve efficiency and provide more options
to individuals traveling in a trunk highway corridor, the commissioner of transportation
may charge user fees to owners or operators of single-occupant vehicles using dynamic
shoulder lanes as designated by the commissioner and, any designated high-occupancy
vehicle lanes, and any other high-occupancy toll lanes. The fees may be collected using
electronic or other toll-collection methods and may vary in amount with the time of day
and level of traffic congestion within the corridor. The commissioner shall consult with
the Metropolitan Council and obtain necessary federal authorizations before implementing
user fees on a high-occupancy vehicle lane or dynamic shoulder lane. Fees under this
section are not subject to section 16A.1283.

    Sec. 8. Minnesota Statutes 2010, section 160.93, subdivision 2, is amended to read:
    Subd. 2. Deposit of revenues; appropriation appropriations. (a) Except as
provided in subdivision 2a, money collected from fees authorized under subdivision 1
must be deposited in a high-occupancy vehicle lane user fee account in the special revenue
fund. A separate account must be established for each trunk highway corridor for which
the MnPASS system is established. Money in the each account is annually appropriated to
the commissioner, as provided in this subdivision.
    (b) From this each appropriation the commissioner shall first repay the trunk
highway fund and any other fund source for money spent to install, equip, or modify the
corridor for the purposes of subdivision 1, and then shall pay all the costs of implementing
and administering, operating, and maintaining the fee collection system for that corridor,
including payments for tolling and related equipment. The commissioner may allocate
payments for shared administrative costs from each account established under this section.
    (c) The commissioner shall spend remaining money in the account from each
appropriation as follows:
    (1) in the MnPASS corridor for Route No. 10, signed as Interstate Highway 394 on
the effective date of this section:
(i) one-half must be spent for transportation capital improvements within the
corridor; and
    (2) (ii) one-half must be transferred to the Metropolitan Council for expansion
and improvement of bus transit services within the corridor beyond the level of service
provided on the date of implementation of subdivision 1; and
(2) in any other MnPASS corridor established under this section, except as provided
in subdivision 2a, the funds must be spent for transportation capital improvements within
that corridor.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 9. Minnesota Statutes 2010, section 161.14, subdivision 66, is amended to read:
    Subd. 66. Veterans Memorial Highway. Legislative Route No. 31, signed as
Trunk Highway marked 200 as of July 1, 2010, from the border with North Dakota to the
city of Mahnomen, is designated as the "Veterans Memorial Highway." The commissioner
shall adopt a suitable design to mark this highway and erect appropriate signs, subject
to section 161.139.

    Sec. 10. Minnesota Statutes 2010, section 161.14, is amended by adding a subdivision
to read:
    Subd. 70. Arianna Celeste Macnamara Memorial Bridge. The pedestrian
bridge over Route No. 7, signed as Trunk Highway 14 on the effective date of this
section, located in the city of Rochester west of Route No. 20, signed as U.S. Highway
52 on the effective date of this section, is designated as "Arianna Celeste Macnamara
Memorial Bridge." Subject to section 161.139, the commissioner shall adopt a suitable
marking design to memorialize the bridge and shall erect the appropriate signs as close as
practicable to the bridge.

    Sec. 11. Minnesota Statutes 2010, section 161.14, is amended by adding a subdivision
to read:
    Subd. 71. Deputy John W. Liebenstein Memorial Highway. (a) That segment of
Route No. 390, signed as Interstate Highway 35 on the effective date of this section and
located in Rice County, is designated as "Deputy John W. Liebenstein Memorial Highway."
Subject to section 161.139, the commissioner shall adopt a suitable marking design to
mark this highway and shall erect the appropriate signs as provided in paragraph (b).
(b) The commissioner of transportation shall erect suitable signs on signed Interstate
Highway 35 as close as practicable to the following locations:
(1) one sign on the southbound entrance ramp of the interchange with Rice County
State-Aid Highway 1; and
(2) one sign on the northbound entrance ramp of the interchange with Rice County
State-Aid Highway 1.

    Sec. 12. Minnesota Statutes 2010, section 161.321, is amended to read:
161.321 SMALL BUSINESS CONTRACTS.
    Subdivision 1. Definitions. For purposes of this section the following terms have
the meanings given them, except where the context clearly indicates a different meaning is
intended.
(a) "Award" means the granting of a contract in accordance with all applicable laws
and rules governing competitive bidding except as otherwise provided in this section.
(b) "Contract" means an agreement entered into between a business entity and the
state of Minnesota for the construction of transportation improvements.
(c) "Subcontractor" means a business entity which enters into a legally binding
agreement with another business entity which is a party to a contract as defined in
paragraph (b).
(d) "Targeted group business" means a business designated under section 16C.16,
subdivision 5 .
(e) "Veteran-owned small business" means a business designated under section
16C.16, subdivision 6a .
    Subd. 2. Small business set-asides; procurement and construction contract
preferences. (a) The commissioner may award up to a six percent preference in the
amount bid for specified construction work to small targeted group businesses and
veteran-owned small businesses.
(b) The commissioner may designate a contract for construction work for award only
to small targeted group businesses if the commissioner determines that at least three small
targeted group businesses are likely to bid. The commissioner may designate a contract for
construction work for award only to veteran-owned small businesses if the commissioner
determines that at least three veteran-owned small businesses are likely to bid.
(c) The commissioner, as a condition of awarding a construction contract, may
set goals that require the prime contractor to subcontract a portion of the contract to
small targeted group businesses and veteran-owned small businesses. The commissioner
must establish a procedure for granting waivers from the subcontracting requirement
when qualified small targeted group businesses and veteran-owned small businesses
are not reasonably available. The commissioner may establish financial incentives for
prime contractors who exceed the goals for use of subcontractors and financial penalties
for prime contractors who fail to meet goals under this paragraph. The subcontracting
requirements of this paragraph do not apply to prime contractors who are small targeted
group businesses or veteran-owned small businesses.
(d) (c) The commissioner may award up to a four percent preference in the amount
bid on procurement for specified construction work to small businesses located in an
economically disadvantaged area as defined in section 16C.16, subdivision 7.
    Subd. 2a. Subcontracting goals. (a) The commissioner, as a condition of awarding
a construction contract, may set goals that require the prime contractor to subcontract
portions of the contract to small targeted group businesses and veteran-owned small
businesses. Prime contractors must demonstrate good faith efforts to meet the project
goals. The commissioner shall establish a procedure for granting waivers from the
subcontracting requirement when either qualified small targeted group businesses or
veteran-owned small businesses, or both, are not reasonably available. The commissioner
may establish (1) financial incentives for prime contractors who exceed the goals set for
the use of subcontractors under this subdivision; and (2) sanctions for prime contractors
who fail to make good faith efforts to meet the goals set under this subdivision.
(b) The small targeted group business subcontracting requirements of this
subdivision do not apply to prime contractors who are small targeted group businesses.
The veteran-owned small business subcontracting requirements of this subdivision do not
apply to prime contractors who are veteran-owned small businesses.
    Subd. 3. Subcontract awards to small businesses. At least 75 percent of
subcontracts awarded to small targeted group businesses must be performed by the
business to which the subcontract is awarded or another small targeted group business.
At least 75 percent of subcontracts awarded to veteran-owned small businesses must be
performed by the business to which the subcontract is awarded or another veteran-owned
small business.
    Subd. 4. Contract awards, limitations. Contracts awarded pursuant to this
section are subject to all limitations contained in rules adopted by the commissioner
of administration.
    Subd. 4a. Limited duration and reevaluation. The commissioner shall cooperate
with the commissioner of administration to periodically reevaluate the targeted group
businesses to determine whether there is a statistical disparity between the percentage of
construction contracts awarded to businesses owned by targeted group members and the
representation of businesses owned by targeted group members among all businesses in
the state in the construction category. The commissioner of administration shall designate
targeted groups pursuant to section 16C.16, subdivision 5.
    Subd. 5. Recourse to other businesses. If the commissioner is unable to award
a contract pursuant to the provisions of subdivisions 2 and 3 to 4a, the award may be
placed pursuant to the normal solicitation and award provisions set forth in this chapter
and chapter 16C.
    Subd. 6. Rules; eligibility. (a) The rules adopted by the commissioner of
administration to define small businesses and to set time and other eligibility requirements
for participation in programs under sections 16C.16 to 16C.19 apply to this section. The
commissioner may promulgate other rules necessary to carry out this section.
(b) In addition to other eligibility requirements, a small targeted group business or
veteran-owned small business is eligible for the bid preferences under this section only
for eight years following the later of (1) the effective date of this act, or (2) the date of
initial designation as a small targeted group business or veteran-owned small business by
the commissioner of administration under section 16C.16.
    Subd. 7. Noncompetitive bids. The commissioner is encouraged to purchase
from small targeted group businesses and veteran-owned small businesses designated
under section 16C.16 when making purchases that are not subject to competitive bidding
procedures.
    Subd. 8. Report by commissioner Reporting. (a) The commissioner of
transportation shall report to the commissioner of administration on compliance with this
section. The information must be reported at the time and in the manner requested by the
commissioner of administration.
(b) By February 1 of each even-numbered year, the commissioner shall submit a
report to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation policy and finance concerning contract awards under this
section. At a minimum, the report must include:
(1) a summary of the program;
(2) a review of the use of preferences for contracting, including frequency of
establishment of a preference and frequency of contract award to a small targeted group
business or veteran-owned small business;
(3) a review of goals and good faith efforts to use small targeted group businesses
and veteran-owned small businesses in subcontracts, including analysis of methods used
for, and effectiveness of, good faith efforts;
(4) a summary of any financial incentives or sanctions imposed;
(5) information on each reevaluation under subdivision 4a, including details on the
methodology for reevaluation; and
(6) any recommendations for legislative or programmatic changes.

    Sec. 13. Minnesota Statutes 2010, section 161.3212, is amended to read:
161.3212 WORKING CAPITAL FUND.
The commissioner, to the extent allowed by other law or contract, may grant
available money that has been appropriated for socially or economically disadvantaged
business programs to a guaranty fund administered by a nonprofit organization that makes
or guarantees working capital loans to businesses small business concerns owned and
operated by socially or and economically disadvantaged persons as defined individuals.
"Small business concern" and "socially and economically disadvantaged individual" have
the meanings given them in Code of Federal Regulations, title 49, section 23.5 26.5. The
purpose of loans made or guaranteed by the organization must be to provide short-term
working capital to enable eligible businesses to be awarded contracts for goods and
services or for construction-related services from government agencies.
Money contributed from a constitutionally or statutorily dedicated fund must be used
only for purposes consistent with the purposes of the dedicated fund.

    Sec. 14. Minnesota Statutes 2010, section 162.09, is amended by adding a subdivision
to read:
    Subd. 4a. Municipal state-aid transition. (a) Notwithstanding subdivision 4, any
city that has a population of less than 5,000 according to a federal decennial census, and
that has had a population of 5,000 or more as determined by the most recent population
estimate of the Metropolitan Council or state demographer made prior to the census, is
deemed for purposes of this chapter to have a population that is the greater of (1) 5,000, or
(2) as otherwise determined under subdivision 4, paragraph (b), (c), or (d).
(b) This subdivision applies only to the first four consecutive calendar years for
which population is determined for purposes of this chapter on the basis of a federal
decennial census.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 15. Minnesota Statutes 2011 Supplement, section 162.12, subdivision 1, is
amended to read:
    Subdivision 1. Estimate of accruals; allocation. (a) By December 15 of each
year the commissioner shall estimate the amount of money that will be available to the
municipal state-aid street fund during that fiscal year. The amount available is based on
actual receipts from July 1 through October 31, the unallocated fund balance, and the
projected receipts for the remainder of the fiscal year. The total available, except for
deductions as provided herein, shall be apportioned by the commissioner to the cities
having a population of 5,000 or more as hereinafter provided.
(b) The apportionment sum distributed under section 162.13, subdivision 1, equals
the total amount available as annually estimated under paragraph (a), less:
(1) the deductions as provided in this section;
(2) any allocation made under section 162.125; and
(3) any debt service payment identified for a statutory or home rule charter city that
is only eligible for municipal state-aid street funds under section 162.18, subdivision 4.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 16. Minnesota Statutes 2010, section 162.13, subdivision 1, is amended to read:
    Subdivision 1. Factors in formula. After deducting for administrative costs and for
the disaster fund and research account as heretofore provided, and for any allocation made
under section 162.125, the remainder of the total sum provided for in subdivision 1 of
section 162.12 shall be identified as The apportionment sum, and as specified in section
162.12, subdivision 1, shall be apportioned by the commissioner to the cities having a
population of 5,000 or more, in accordance with the following formula:
(1) An amount equal to 50 percent of such apportionment sum shall be apportioned
among the cities having a population of 5,000 or more so that each such city shall receive
of such amount the percentage that its money needs bears to the total money needs of
all such cities.
(2) An amount equal to 50 percent of such apportionment sum shall be apportioned
among the cities having a population of 5,000 or more so that each such city shall receive
of such amount the percentage that its population bears to the total population of all such
cities.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 17. Minnesota Statutes 2010, section 162.18, subdivision 1, is amended to read:
    Subdivision 1. Authorization; limitation on amount. (a) Any city having a
population of 5,000 or more may in accordance with chapter 475, except as otherwise
provided herein, issue and sell its obligations for the purpose of establishing, locating,
relocating, constructing, reconstructing, and improving municipal state-aid streets therein.
In the resolution providing for the issuance of the obligations, the governing body of the
municipality shall irrevocably pledge and appropriate to the sinking fund from which
the obligations are payable, an amount of the moneys allotted or to be allotted to the
municipality from its account in the municipal state-aid street fund sufficient to pay the
principal of and the interest on the obligations as they respectively come due.
(b) The obligations shall be issued in amounts and on terms such that the average
annual amount of principal and interest due in all subsequent calendar years on the
obligations, including any similar obligations of the municipality which are outstanding,
shall not exceed 90 percent of the amount of the last annual allotment preceding the
bond issue received by the municipality from the construction account in the municipal
state-aid street fund.
(c) In any calendar year in which the municipality receives aid from the municipal
state-aid street fund under this chapter, all interest on the obligations shall be paid out of
the municipality's normal maintenance account in the municipal state-aid street fund. Any
such obligations may be made general obligations, but if moneys of the municipality other
than moneys received from the municipal state-aid street fund, are used for payment of
the obligations, the moneys so used shall be restored to the appropriate fund from the
moneys next received by the municipality from the construction or maintenance account
in the municipal state-aid street fund which are not required to be paid into a sinking
fund for obligations.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 18. Minnesota Statutes 2010, section 162.18, subdivision 4, is amended to read:
    Subd. 4. Certification to commissioner of money required Certifications;
payment. (a) Any municipality issuing and selling bonds pursuant to this section shall
certify to the commissioner the amount of money required annually for the payment of
principal and interest on the obligation. Upon receipt thereof, the commissioner shall
certify to the commissioner of management and budget the sum of money needed annually
by the municipality for the principal and interest, provided that the amount certified by the
commissioner shall must not exceed the limit heretofore specified in this section.
(b) The commissioner of management and budget shall thereafter, until said bonds
are retired, issue a warrant annually in the amount certified payable to the fiscal officer
of the municipality, and the amount thereof shall be deposited by the fiscal officer until
the bonds are retired or defeased. The fiscal officer of the municipality shall deposit that
amount in the sinking fund from which the obligations are payable.
(c) For any obligations issued before the effective date of this paragraph,
notwithstanding the requirements of this chapter, the requirements of this subdivision
apply regardless of the population of the city in each year.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 19. Minnesota Statutes 2010, section 168.002, subdivision 19, is amended to read:
    Subd. 19. Motorcycle. "Motorcycle" means every motor vehicle having a seat or
saddle for the use of the rider and designed to travel on not more than three wheels in
contact with the ground, including motor scooters and bicycles with motor attached, other
than those vehicles defined as motorized bicycles in subdivision 20, but excluding a tractor
has the meaning given in section 169.011, subdivision 44.

    Sec. 20. Minnesota Statutes 2010, section 168.002, subdivision 20, is amended to read:
    Subd. 20. Motorized bicycle. "Motorized bicycle" means a bicycle that is propelled
by an electric or a liquid fuel motor of a piston displacement capacity of 50 cubic
centimeters or less, and a maximum of two brake horsepower, which is capable of a
maximum speed of not more than 30 miles per hour on a flat surface with not more than
one percent grade in any direction when the motor is engaged. "Motorized bicycle"
includes an electric-assisted bicycle as defined in section 169.011, subdivision 27 has the
meaning given in section 169.011, subdivision 45.

    Sec. 21. Minnesota Statutes 2010, section 168.012, subdivision 1, is amended to read:
    Subdivision 1. Vehicles exempt from tax, fees, or plate display. (a) The following
vehicles are exempt from the provisions of this chapter requiring payment of tax and
registration fees, except as provided in subdivision 1c:
    (1) vehicles owned and used solely in the transaction of official business by the
federal government, the state, or any political subdivision;
    (2) vehicles owned and used exclusively by educational institutions and used solely
in the transportation of pupils to and from those institutions;
    (3) vehicles used solely in driver education programs at nonpublic high schools;
    (4) vehicles owned by nonprofit charities and used exclusively to transport disabled
persons for charitable, religious, or educational purposes;
    (5) vehicles owned by nonprofit charities and used exclusively for disaster response
and related activities;
    (6) vehicles owned by ambulance services licensed under section 144E.10 that
are equipped and specifically intended for emergency response or providing ambulance
services; and
    (7) vehicles owned by a commercial driving school licensed under section 171.34,
or an employee of a commercial driving school licensed under section 171.34, and the
vehicle is used exclusively for driver education and training.
    (b) Provided the general appearance of the vehicle is unmistakable, the following
vehicles are not required to register or display number plates:
(1) vehicles owned by the federal government;
(2) fire apparatuses, including fire-suppression support vehicles, owned or leased by
the state or a political subdivision;
(3) police patrols owned or leased by the state or a political subdivision; and
(4) ambulances owned or leased by the state or a political subdivision.
    (c) Unmarked vehicles used in general police work, liquor investigations, or arson
investigations, and passenger automobiles, pickup trucks, and buses owned or operated by
the Department of Corrections or by conservation officers of the Division of Enforcement
and Field Service of the Department of Natural Resources, must be registered and must
display appropriate license number plates, furnished by the registrar at cost. Original and
renewal applications for these license plates authorized for use in general police work and
for use by the Department of Corrections or by conservation officers must be accompanied
by a certification signed by the appropriate chief of police if issued to a police vehicle,
the appropriate sheriff if issued to a sheriff's vehicle, the commissioner of corrections if
issued to a Department of Corrections vehicle, or the appropriate officer in charge if
issued to a vehicle of any other law enforcement agency. The certification must be on a
form prescribed by the commissioner and state that the vehicle will be used exclusively
for a purpose authorized by this section.
    (d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry,
fraud unit, in conducting seizures or criminal investigations must be registered and must
display passenger vehicle classification license number plates, furnished at cost by the
registrar. Original and renewal applications for these passenger vehicle license plates
must be accompanied by a certification signed by the commissioner of revenue or the
commissioner of labor and industry. The certification must be on a form prescribed by
the commissioner and state that the vehicles will be used exclusively for the purposes
authorized by this section.
    (e) Unmarked vehicles used by the Division of Disease Prevention and Control of the
Department of Health must be registered and must display passenger vehicle classification
license number plates. These plates must be furnished at cost by the registrar. Original
and renewal applications for these passenger vehicle license plates must be accompanied
by a certification signed by the commissioner of health. The certification must be on a
form prescribed by the commissioner and state that the vehicles will be used exclusively
for the official duties of the Division of Disease Prevention and Control.
    (f) Unmarked vehicles used by staff of the Gambling Control Board in gambling
investigations and reviews must be registered and must display passenger vehicle
classification license number plates. These plates must be furnished at cost by the
registrar. Original and renewal applications for these passenger vehicle license plates must
be accompanied by a certification signed by the board chair. The certification must be on a
form prescribed by the commissioner and state that the vehicles will be used exclusively
for the official duties of the Gambling Control Board.
    (g) Unmarked vehicles used in general investigation, surveillance, supervision,
and monitoring by the staff of the Department of Human Services Office of Special
Investigations and the executive director of the Minnesota sex offender program must
be registered and must display passenger vehicle classification license number plates,
furnished by the registrar at cost. Original and renewal applications for passenger vehicle
license plates must be accompanied by a certification signed by the commissioner of
human services. The certification must be on a form prescribed by the commissioner and
state that the vehicles must be used exclusively for the official duties of the Office of
Special Investigations and the executive director of the Minnesota sex offender program.
(h) Each state hospital and institution for persons who are mentally ill and
developmentally disabled may have one vehicle without the required identification on
the sides of the vehicle. The vehicle must be registered and must display passenger
vehicle classification license number plates. These plates must be furnished at cost by the
registrar. Original and renewal applications for these passenger vehicle license plates must
be accompanied by a certification signed by the hospital administrator. The certification
must be on a form prescribed by the commissioner and state that the vehicles will be used
exclusively for the official duties of the state hospital or institution.
    (i) Each county social service agency may have vehicles used for child and
vulnerable adult protective services without the required identification on the sides of the
vehicle. The vehicles must be registered and must display passenger vehicle classification
license number plates. These plates must be furnished at cost by the registrar. Original
and renewal applications for these passenger vehicle license plates must be accompanied
by a certification signed by the agency administrator. The certification must be on a form
prescribed by the commissioner and state that the vehicles will be used exclusively for the
official duties of the social service agency.
    (j) All other motor vehicles must be registered and display tax-exempt number
plates, furnished by the registrar at cost, except as provided in subdivision 1c. All
vehicles required to display tax-exempt number plates must have the name of the state
department or political subdivision, nonpublic high school operating a driver education
program, licensed commercial driving school, or other qualifying organization or entity,
plainly displayed on both sides of the vehicle. This identification must be in a color
giving contrast with that of the part of the vehicle on which it is placed and must endure
throughout the term of the registration. The identification must not be on a removable
plate or placard and must be kept clean and visible at all times; except that a removable
plate or placard may be utilized on vehicles leased or loaned to a political subdivision or
to a nonpublic high school driver education program.

    Sec. 22. Minnesota Statutes 2010, section 168.012, is amended by adding a subdivision
to read:
    Subd. 2d. Electric-assisted bicycles. Electric-assisted bicycles must not be taxed as
motor vehicles using the public streets and highways, and are exempt from the provisions
of this chapter.

    Sec. 23. Minnesota Statutes 2010, section 168.013, is amended by adding a subdivision
to read:
    Subd. 22. Optional donation for education on anatomical gifts. As part of
procedures for payment of the vehicle registration tax under this section, the commissioner
shall allow a vehicle owner to add to the tax a $2 donation for the purposes of public
information and education on anatomical gifts under section 171.075, for in-person
transactions conducted by a deputy registrar appointed under section 168.33, subdivision
2. This subdivision applies to annual renewal registrations only, and does not apply to
registrations authorized under sections 168.053 to 168.057, 168.127, 168.187, and 168.27.
EFFECTIVE DATE.This section is effective January 1, 2013.

    Sec. 24. Minnesota Statutes 2011 Supplement, section 168.12, subdivision 5, is
amended to read:
    Subd. 5. Additional fee. (a) In addition to any fee otherwise authorized or any tax
otherwise imposed upon any vehicle, the payment of which is required as a condition to
the issuance of any plate or plates, the commissioner shall impose the fee specified in
paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate
or plates, except for plates issued to disabled veterans as defined in section 168.031 and
plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17,
for passenger automobiles. The commissioner shall issue graphic design plates only
for vehicles registered pursuant to section 168.017 and recreational vehicles registered
pursuant to section 168.013, subdivision 1g.
    (b) Unless otherwise specified or exempted by statute, the following plate and
validation sticker fees apply for the original, duplicate, or replacement issuance of a
plate in a plate year:

	License Plate				Single		Double
		Regular and Disability		$	4.50	$	6.00
		Special		$	8.50	$	10.00
		Personalized (Replacement)		$	10.00	$	14.00
		Collector Category		$	13.50	$	15.00
		Emergency Vehicle Display		$	3.00	$	6.00
		Utility Trailer Self-Adhesive		$	2.50
		Vertical Motorcycle Plate		$	100.00		NA
	Stickers
		Duplicate year		$	1.00	$	1.00
		International Fuel Tax Agreement		$	2.50

    (c) For vehicles that require two of the categories above, the registrar shall only
charge the higher of the two fees and not a combined total.
(d) As part of procedures for payment of the fee under paragraph (b), the
commissioner shall allow a vehicle owner to add to the fee, a $2 donation for the purposes
of public information and education on anatomical gifts under section 171.075.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 25. Minnesota Statutes 2010, section 168A.03, subdivision 1, is amended to read:
    Subdivision 1. No certificate issued. The registrar shall not issue a certificate of
title for:
    (1) a vehicle owned by the United States;
    (2) a vehicle owned by a nonresident and not required by law to be registered in
this state;
    (3) a vehicle owned by a nonresident and regularly engaged in the interstate
transportation of persons or property for which a currently effective certificate of title
has been issued in another state;
    (4) a vehicle moved solely by animal power;
    (5) an implement of husbandry;
    (6) special mobile equipment;
    (7) a self-propelled wheelchair or invalid tricycle;
    (8) a trailer (i) having a gross weight of 4,000 pounds or less unless a secured party
holds an interest in the trailer or a certificate of title was previously issued by this state or
any other state or (ii) designed primarily for agricultural purposes except a recreational
vehicle or a manufactured home, both as defined in section 168.002, subdivisions 16
and 27 ;
    (9) a snowmobile; and
    (10) a spotter truck, as defined in section 169.011, subdivision 77; and
(11) an electric-assisted bicycle, as defined in section 169.011, subdivision 27.

    Sec. 26. Minnesota Statutes 2010, section 168B.011, subdivision 12, is amended to
read:
    Subd. 12. Public impound lot. "Public impound lot" means an impound lot owned
by or contracting with exclusively contracted solely for public use by a unit of government
under section 168B.09.

    Sec. 27. Minnesota Statutes 2010, section 169.011, subdivision 4, is amended to read:
    Subd. 4. Bicycle. "Bicycle" means every device capable of being propelled solely
by human power upon which any person may ride, having two tandem wheels except
scooters and similar devices, and including any device generally recognized as a bicycle
though equipped with two front or rear wheels. "Bicycle" does not include scooters,
motorized foot scooters, or similar devices.

    Sec. 28. Minnesota Statutes 2010, section 169.011, subdivision 27, is amended to read:
    Subd. 27. Electric-assisted bicycle. "Electric-assisted bicycle" means a motor
vehicle bicycle with two or three wheels that:
(1) has a saddle and fully operable pedals for human propulsion;
(2) meets the requirements:
(i) of federal motor vehicle safety standards for a motor-driven cycle in Code of
Federal Regulations, title 49, sections 571.1 et seq.; or
(ii) for bicycles under Code of Federal Regulations, title 16, part 1512, or successor
requirements; and
(3) has an electric motor that (i) has a power output of not more than 1,000 watts, (ii)
is incapable of propelling the vehicle at a speed of more than 20 miles per hour, (iii) is
incapable of further increasing the speed of the device when human power alone is used
to propel the vehicle at a speed of more than 20 miles per hour, and (iv) disengages or
ceases to function when the vehicle's brakes are applied.

    Sec. 29. Minnesota Statutes 2010, section 169.011, subdivision 44, is amended to read:
    Subd. 44. Motorcycle. "Motorcycle" means every motor vehicle having a seat or
saddle for the use of the rider and designed to travel on not more than three wheels in
contact with the ground, including motor scooters and bicycles with motor attached, other
than those vehicles defined as. "Motorcycle" does not include (1) motorized bicycles
as defined in subdivision 45, but excluding (2) electric-assisted bicycles as defined in
subdivision 27, or (3) a tractor.

    Sec. 30. Minnesota Statutes 2010, section 169.011, subdivision 45, is amended to read:
    Subd. 45. Motorized bicycle. "Motorized bicycle" means a bicycle that is propelled
by an electric or a liquid fuel motor of a piston displacement capacity of 50 cubic
centimeters or less, and a maximum of two brake horsepower, which is capable of a
maximum speed of not more than 30 miles per hour on a flat surface with not more than
one percent grade in any direction when the motor is engaged. "Motorized bicycle"
includes does not include an electric-assisted bicycle as defined in subdivision 27.

    Sec. 31. Minnesota Statutes 2010, section 169.035, subdivision 1, is amended to read:
    Subdivision 1. Working on highway. (a) The provisions of this chapter shall not
apply to persons, motor vehicles, and other equipment while actually engaged in work
upon the highway, except as provided in paragraphs (b) and (c).
(b) This chapter shall apply to those persons and vehicles when traveling to or
from such work, except that persons operating equipment owned, rented or hired by
road authorities shall be exempt from the width, height and length provisions of sections
169.80 and 169.81 and shall be exempt from the weight limitations of this chapter while
performing the following actions on behalf of the state or a local governmental unit:
(1) while loading, readying, or moving the vehicles or equipment in preparation for
combating anticipated slippery road conditions or removing snow or ice;
(2) while actually engaged in snow or ice removal and or combating slippery road
conditions, including but not limited to pretreatment and anti-icing activities; or
(3) while engaged in flood control operations on behalf of the state or a local
governmental unit.
(c) Chapter 169A and section 169.444 apply to persons while actually engaged in
work upon the highway.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 32. Minnesota Statutes 2010, section 169.035, is amended by adding a subdivision
to read:
    Subd. 4. Trains. (a) For purposes of this subdivision, "railroad operator" means
a person who is a locomotive engineer, conductor, member of the crew of a railroad
locomotive or train, or an operator of on-track equipment.
(b) A peace officer may not issue a citation for violation of this chapter or chapter
171 to a railroad operator involving the operation of a railroad locomotive or train, or
on-track equipment while being operated upon rails.
(c) Notwithstanding section 171.08, a railroad operator is not required to display or
furnish a driver's license to a peace officer in connection with the operation of a railroad
locomotive or train, or on-track equipment while being operated upon rails.

    Sec. 33. Minnesota Statutes 2010, section 169.04, is amended to read:
169.04 LOCAL AUTHORITY.
(a) The provisions of this chapter shall not be deemed to prevent local authorities,
with respect to streets and highways under their jurisdiction, and with the consent of
the commissioner, with respect to state trunk highways, within the corporate limits of a
municipality, or within the limits of a town in a county in this state now having or which
may hereafter have, a population of 500,000 or more, and a land area of not more than 600
square miles, and within the reasonable exercise of the police power from:
(1) regulating the standing or parking of vehicles;
(2) regulating traffic by means of police officers or traffic-control signals;
(3) regulating or prohibiting processions or assemblages on the highways;
(4) designating particular highways as one-way roadways and requiring that all
vehicles, except emergency vehicles, when on an emergency run, thereon be moved in one
specific direction;
(5) designating any highway as a through highway and requiring that all vehicles stop
before entering or crossing the same, or designating any intersection as a stop intersection,
and requiring all vehicles to stop at one or more entrances to such intersections;
(6) restricting the use of highways as authorized in sections 169.80 to 169.88.
(b) No ordinance or regulation enacted under paragraph (a), clause (4), (5), or (6),
shall be effective until signs giving notice of such local traffic regulations are posted
upon and kept posted upon or at the entrance to the highway or part thereof affected as
may be most appropriate.
(c) No ordinance or regulation enacted under paragraph (a), clause (3), or any other
provision of law shall prohibit:
(1) the use of motorcycles or vehicles utilizing flashing red lights for the purpose of
escorting funeral processions, oversize buildings, heavy equipment, parades or similar
processions or assemblages on the highways; or
(2) the use of motorcycles or vehicles that are owned by the funeral home and that
utilize flashing red lights for the purpose of escorting funeral processions.
(d) A local unit of government must not impose a criminal penalty by ordinance or
regulation on a seller or purchaser based upon the method of purchase agreed to by the
seller and purchaser for the retail sale of motor vehicle fuel.

    Sec. 34. Minnesota Statutes 2010, section 169.06, subdivision 5, is amended to read:
    Subd. 5. Traffic-control signal. (a) Whenever traffic is controlled by traffic-control
signals exhibiting different colored lights, or colored lighted arrows, successively one at a
time or in combination, only the colors Green, Red, and Yellow shall be used, except for
special pedestrian signals carrying a word or legend. The traffic-control signal lights or
colored lighted arrows indicate and apply to drivers of vehicles and pedestrians as follows:
    (1) Green indication:
    (i) Vehicular traffic facing a circular green signal may proceed straight through or
turn right or left unless a sign at such place prohibits either turn. But vehicular traffic,
including vehicles turning right or left, shall yield the right-of-way to other vehicles and to
pedestrians lawfully within the intersection or adjacent crosswalk at the time this signal
is exhibited. Vehicular traffic turning left or making a U-turn to the left shall yield the
right-of-way to other vehicles approaching from the opposite direction so closely as to
constitute an immediate hazard.
    (ii) Vehicular traffic facing a green arrow signal, shown alone or in combination with
another indication, may cautiously enter the intersection only to make the movement
indicated by the arrow, or other movement as permitted by other indications shown at the
same time. Such Vehicular traffic shall yield the right-of-way to pedestrians lawfully
within an adjacent crosswalk and to other traffic lawfully using the intersection.
    (iii) Unless otherwise directed by a pedestrian-control signal as provided in
subdivision 6, pedestrians facing any green signal, except when the sole green signal is a
turn arrow, may proceed across the roadway within any marked or unmarked crosswalk.
Every driver of a vehicle shall yield the right-of-way to such pedestrian, except that the
pedestrian shall yield the right-of-way to vehicles lawfully within the intersection at the
time that the green signal indication is first shown.
    (2) Steady yellow indication:
    (i) Vehicular traffic facing a steady circular yellow or yellow arrow signal is thereby
warned that the related green movement is being terminated or that a red indication will be
exhibited immediately thereafter when vehicular traffic must not enter the intersection,
except for the continued movement allowed by any green arrow indication simultaneously
exhibited.
    (ii) Pedestrians facing a circular yellow signal, unless otherwise directed by a
pedestrian-control signal as provided in subdivision 6, are thereby advised that there is
insufficient time to cross the roadway before a red indication is shown and no pedestrian
shall then start to cross the roadway.
    (3) Steady red indication:
    (i) Vehicular traffic facing a circular red signal alone must stop at a clearly marked
stop line but, if none, before entering the crosswalk on the near side of the intersection
or, if none, then before entering the intersection and shall remain standing until a green
indication is shown, except as follows: (A) the driver of a vehicle stopped as close
as practicable at the entrance to the crosswalk on the near side of the intersection or,
if none, then at the entrance to the intersection in obedience to a red or stop signal,
and with the intention of making a right turn may make the right turn, after stopping,
unless an official sign has been erected prohibiting such movement, but shall yield the
right-of-way to pedestrians and other traffic lawfully proceeding as directed by the signal
at that intersection; or (B) the driver of a vehicle on a one-way street intersecting another
one-way street on which traffic moves to the left shall stop in obedience to a red or stop
signal and may then make a left turn into the one-way street, unless an official sign has
been erected prohibiting the movement, but shall yield the right-of-way to pedestrians and
other traffic lawfully proceeding as directed by the signal at that intersection.
    (ii) Unless otherwise directed by a pedestrian-control signal as provided in
subdivision 6, pedestrians facing a steady red signal alone shall not enter the roadway.
    (iii) Vehicular traffic facing a steady red arrow signal, with the intention of making a
movement indicated by the arrow, must stop at a clearly marked stop line but, if none,
before entering the crosswalk on the near side of the intersection or, if none, then before
entering the intersection and must remain standing until a permissive signal indication
permitting the movement indicated by the red arrow is displayed, except as follows: when
an official sign has been erected permitting a turn on a red arrow signal, the vehicular
traffic facing a red arrow signal indication is permitted to enter the intersection to turn
right, or to turn left from a one-way street into a one-way street on which traffic moves
to the left, after stopping, but must yield the right-of-way to pedestrians and other traffic
lawfully proceeding as directed by the signal at that intersection.
    (b) In the event an official traffic-control signal is erected and maintained at a place
other than an intersection, the provisions of this section are applicable except those which
can have no application. Any stop required must be made at a sign or marking on the
pavement indicating where the stop must be made, but in the absence of any such sign or
marking the stop must be made at the signal.
    (c) When a traffic-control signal indication or indications placed to control a certain
movement or lane are so identified by placing a sign near the indication or indications,
no other traffic-control signal indication or indications within the intersection controls
vehicular traffic for that movement or lane.

    Sec. 35. Minnesota Statutes 2010, section 169.06, subdivision 7, is amended to read:
    Subd. 7. Flashing signal. When flashing red or yellow signals are used they shall
require obedience by vehicular traffic as follows:
(a) When a circular red lens is illuminated with rapid intermittent flashes, drivers of
vehicles shall stop at a clearly marked stop line, but if none, before entering the crosswalk
on the near side of the intersection, or if none, then at the point nearest the intersecting
roadway where the driver has a view of approaching traffic on the intersecting roadway
before entering the intersection, and the right to proceed shall be subject to the rules
applicable after making a stop at a stop sign.
(b) When a red arrow lens is illuminated with rapid intermittent flashes drivers of
vehicles with the intention of making a movement indicated by the arrow shall stop at a
clearly marked stop line, but if none, before entering the crosswalk on the near side of
the intersection, or if none, then at the point nearest the intersecting roadway where the
driver has a view of approaching traffic on the intersecting roadway before entering the
intersection, and the right to proceed shall be subject to the rules applicable after making a
stop at a stop sign.
(c) When a circular yellow lens is illuminated with rapid intermittent flashes, drivers
of vehicles may proceed through the intersection or past the signals only with caution. But
vehicular traffic, including vehicles turning right or left, shall yield the right-of-way to
other vehicles and to pedestrians lawfully within the intersection or adjacent crosswalk at
the time this signal is exhibited. Vehicular traffic turning left or making a U-turn to the left
shall yield the right-of-way to other vehicles approaching from the opposite direction so
closely as to constitute an immediate hazard.
(d) When a yellow arrow indication is illuminated with rapid intermittent flashes,
drivers of vehicles with the intention of making a movement indicated by the arrow may
proceed through the intersection or past the signals only with caution., but shall yield
the right-of-way to other vehicles and to pedestrians lawfully within the intersection or
adjacent crosswalk at the time this signal is exhibited. Vehicular traffic turning left or
making a U-turn to the left shall yield the right-of-way to other vehicles approaching from
the opposite direction so closely as to constitute an immediate hazard.

    Sec. 36. Minnesota Statutes 2010, section 169.19, subdivision 5, is amended to read:
    Subd. 5. Signal to turn. A signal of intention to turn right or left shall be given
continuously during not less than the last 100 feet traveled by the vehicle before turning.
A person whose vehicle is exiting a roundabout is exempt from the requirement in this
subdivision.

    Sec. 37. Minnesota Statutes 2010, section 169.222, subdivision 4, is amended to read:
    Subd. 4. Riding on roadway or shoulder rules. (a) Every person operating a
bicycle upon a roadway shall ride as close as practicable to the right-hand curb or edge of
the roadway except under any of the following situations:
(1) when overtaking and passing another vehicle proceeding in the same direction;
(2) when preparing for a left turn at an intersection or into a private road or driveway;
(3) when reasonably necessary to avoid conditions, including fixed or moving
objects, vehicles, pedestrians, animals, surface hazards, or narrow width lanes, that make
it unsafe to continue along the right-hand curb or edge.
(b) If a bicycle is traveling on a shoulder of a roadway, the bicycle shall travel in the
same direction as adjacent vehicular traffic.
(c) Persons riding bicycles upon a roadway or shoulder shall not ride more than two
abreast and shall not impede the normal and reasonable movement of traffic and, on a
laned roadway, shall ride within a single lane.
(d) A person operating a bicycle upon a sidewalk, or across a roadway or shoulder
on a crosswalk, shall yield the right-of-way to any pedestrian and shall give an audible
signal when necessary before overtaking and passing any pedestrian. No person shall ride
a bicycle upon a sidewalk within a business district unless permitted by local authorities.
Local authorities may prohibit the operation of bicycles on any sidewalk or crosswalk
under their jurisdiction.
(e) An individual operating a bicycle or other vehicle on a bikeway shall leave a safe
distance when overtaking a bicycle or individual proceeding in the same direction on the
bikeway, and shall maintain clearance until safely past the overtaken bicycle or individual.
(f) A person lawfully operating a bicycle on a sidewalk, or across a roadway or
shoulder on a crosswalk, shall have all the rights and duties applicable to a pedestrian
under the same circumstances.
(g) A person may operate an electric-assisted bicycle on the shoulder of a roadway,
on a bikeway, or on a bicycle trail, if not otherwise prohibited under section 85.015,
subdivision 1d; 85.018, subdivision 2, paragraph (d); or 160.263, subdivision 2, paragraph
(b), as applicable.

    Sec. 38. Minnesota Statutes 2010, section 169.222, is amended by adding a subdivision
to read:
    Subd. 6a. Operator and passenger equipment. No person under the age of 18
shall operate or ride an electric-assisted bicycle on a street or highway without wearing
properly fitted and fastened headgear that (1) complies with standards established by
the commissioner of public safety under section 169.974, subdivision 4; or (2) meets
the standards under Code of Federal Regulations, title 16, part 1203, or successor
requirements.

    Sec. 39. Minnesota Statutes 2010, section 169.222, is amended by adding a subdivision
to read:
    Subd. 6b. Operator age. No person under the age of 15 shall operate an
electric-assisted bicycle.

    Sec. 40. Minnesota Statutes 2010, section 169.222, subdivision 7, is amended to read:
    Subd. 7. Sale with reflectors and other equipment. No person shall sell or offer for
sale any new bicycle unless it is equipped with reflectors and other equipment as required
by subdivision 6, clauses (a) and paragraphs (b) and (e) and by the applicable regulations
for new bicycles prescribed by the United States Consumer Product Safety Commission.

    Sec. 41. Minnesota Statutes 2010, section 169.223, subdivision 1, is amended to read:
    Subdivision 1. Safety equipment; parking. Except as otherwise provided in this
section, Section 169.974 relating to motorcycles is applicable to motorized bicycles,
except as otherwise provided in this section and except that:
(1) protective headgear includes headgear that meets the American National
Standard for Protective Headgear for Bicyclists, ANSI Z90.4-1984, approved by the
American National Standards Institute, Inc. standards under Code of Federal Regulations,
title 16, part 1203, or successor requirements;
(2) a motorized bicycle equipped with a headlight and taillight meeting the
requirements of lighting for motorcycles may be operated during nighttime hours;
(3) except as provided in clause (5), protective headgear is not required for operators
18 years of age or older; and
(4) the provisions of section 169.222, subdivision 9, governing the parking of
bicycles apply to motorized bicycles;.
(5) the operator of an electric-assisted bicycle must wear properly fitted and
fastened headgear that meets the American National Standard for Protective Headgear for
Bicyclists, ANSI Z90.4-1984, approved by the American National Standards Institute,
Inc., when operating the electric-assisted bicycle on a street or highway; and
(6) eye protection devices are not required for operators of electric-assisted bicycles.

    Sec. 42. Minnesota Statutes 2010, section 169.223, subdivision 5, is amended to read:
    Subd. 5. Other operation requirements and prohibitions. (a) A person operating
a motorized bicycle on a roadway shall ride as close as practicable to the right-hand curb
or edge of the roadway except in one of the following situations:
(1) when overtaking and passing another vehicle proceeding in the same direction;
(2) when preparing for a left turn at an intersection or into a private road or
driveway; or
(3) when reasonably necessary to avoid conditions, including fixed or moving
objects, vehicles, pedestrians, animals, surface hazards, or narrow width lanes, that make
it unsafe to continue along the right-hand curb or edge.
(b) Persons operating motorized bicycles on a roadway may not ride more than two
abreast and may not impede the normal and reasonable movement of traffic. On a laned
roadway, a person operating a motorized bicycle shall ride within a single lane.
(c) This section does not permit the operation of a motorized bicycle on a bicycle
path or bicycle lane that is reserved for the exclusive use of nonmotorized traffic.
(d) Subject to the provisions of section 160.263, subdivision 3, a person may operate
an electric-assisted bicycle on a bicycle lane. A person may operate an electric-assisted
bicycle on the shoulder of a roadway if the electric-assisted bicycle is traveling in the same
direction as the adjacent vehicular traffic.

    Sec. 43. Minnesota Statutes 2010, section 169.306, is amended to read:
169.306 USE OF SHOULDERS BY BUSES.
(a) The commissioner of transportation A road authority, as defined in section
160.02, subdivision 25, is authorized to permit the use by transit buses and Metro Mobility
buses use of a shoulder, as designated by the commissioner road authority, of a freeway or
expressway, as defined in section 160.02, in Minnesota.
(b) If the commissioner a road authority permits the use of a freeway or expressway
shoulder by transit buses, the commissioner road authority shall permit the use on that
shoulder of a bus (1) with a seating capacity of 40 passengers or more operated by a motor
carrier of passengers, as defined in section 221.012, subdivision 26, while operating in
intrastate commerce or (2) providing regular route transit service, as defined in section
174.22, subdivision 8 , or Metro Mobility services, and operated by or under contract
with the Metropolitan Council, a local transit authority, or a transit authority created by
the legislature. Drivers of these buses must have adequate training in the requirements of
paragraph (c), as determined by the commissioner.
(c) Buses authorized to use the shoulder under this section may be operated on
the shoulder only when main-line traffic speeds are less than 35 miles per hour, except
as provided for in paragraph (f). Drivers of buses being operated on the shoulder may
not exceed the speed of main-line traffic by more than 15 miles per hour and may never
exceed 35 miles per hour, except as provided for in paragraph (f). Drivers of buses being
operated on the shoulder must yield to merging, entering, and exiting traffic and must yield
to other vehicles on the shoulder. Buses operated on the shoulder must be registered with
the Department of Transportation.
(d) For the purposes of this section, the term "Metro Mobility bus" means a motor
vehicle of not less than 20 feet in length engaged in providing special transportation
services under section 473.386 that is:
(1) operated by or under contract with a public or private entity receiving financial
assistance to provide transit services from the Metropolitan Council or the commissioner
of transportation; and
(2) authorized by the commissioner a road authority to use freeway or expressway
shoulders.
(e) This section does not apply to the operation of buses on dynamic shoulder lanes.
(f) The commissioner may authorize different operating conditions and maximum
speeds, not to exceed the posted speed limit, based upon an engineering study and
recommendation by the road authority. The engineering study must be conducted by the
road authority and must conform with the manual and specifications adopted under section
169.06, subdivision 1, and applicable state and federal standards. The road authority shall
consult the public transit operator before recommending operating conditions different
from those authorized by law.

    Sec. 44. Minnesota Statutes 2010, section 169.64, subdivision 2, is amended to read:
    Subd. 2. Colored light. (a) Unless otherwise authorized by the commissioner of
public safety, no vehicle shall be equipped, nor shall any person drive or move any vehicle
or equipment upon any highway with any lamp or device displaying a red light or any
colored light other than those required or permitted in this chapter.
(b) A vehicle manufactured for use as an emergency vehicle may display and use
colored lights that are not otherwise required or permitted in this chapter, provided that
the vehicle is owned and operated according to section 168.10, is owned and operated
solely as a collector's item and not for general transportation purposes, and is registered
under section 168.10, subdivision 1a, 1b, 1c, 1d, 1g, or 1h. A person may not activate the
colored lights authorized under this paragraph on streets or highways except as part of
a parade or other special event.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 45. Minnesota Statutes 2010, section 169.685, subdivision 6, is amended to read:
    Subd. 6. Exceptions. (a) This section does not apply to:
(1) a person transporting a child in an emergency medical vehicle while in the
performance of official duties and when the physical or medical needs of the child make
the use of a child passenger restraint system unreasonable or when a child passenger
restraint system is not available;
(2) a peace officer transporting a child while in the performance of official duties
and when a child passenger restraint system is not available, provided that a seat belt
must be substituted;
(3) a person while operating a motor vehicle for hire, including a taxi, airport
limousine, and bus, but excluding a rented, leased, or borrowed motor vehicle; and
(4) a person while operating a school bus; and that has a gross vehicle weight rating
of greater than 10,000 pounds.
(5) a person while operating a type III vehicle described in section 169.011,
subdivision 71, paragraph (h), if the vehicle meets the seating and crash protection
requirements of Federal Motor Vehicle Safety Standard 222, Code of Federal Regulations,
title 49, part 571.
(b) A child passenger restraint system is not required for a child who cannot, in the
judgment of a licensed physician, be safely transported in a child passenger restraint
system because of a medical condition, body size, or physical disability. A motor vehicle
operator claiming exemption for a child under this paragraph must possess a typewritten
statement from the physician stating that the child cannot be safely transported in a child
passenger restraint system. The statement must give the name and birth date of the child,
be dated within the previous six months, and be made on the physician's letterhead or
contain the physician's name, address, and telephone number. A person charged with
violating subdivision 5 may not be convicted if the person produces the physician's
statement in court or in the office of the arresting officer.
(c) A person offering a motor vehicle for rent or lease shall provide a child passenger
restraint device to a customer renting or leasing the motor vehicle who requests the device.
A reasonable rent or fee may be charged for use of the child passenger restraint device.

    Sec. 46. Minnesota Statutes 2010, section 169.79, subdivision 6, is amended to read:
    Subd. 6. Other motor vehicles. If the motor vehicle is any kind of motor vehicle
other than those provided for in subdivisions 2 to 4, one plate must be displayed on the
front and one on the rear of the vehicle. The plate must be mounted on the rear bumper of
the vehicle or on the back of the vehicle exterior in the place designed to hold a license
plate.

    Sec. 47. Minnesota Statutes 2010, section 169.86, subdivision 4, is amended to read:
    Subd. 4. Display and inspection of permit. Every such A permit shall must be
carried in the vehicle or combination of vehicles to which it refers and shall must be open
to inspection by any police peace officer or authorized agent of any authority granting
such the permit, and. A permit may be carried in electronic format if it is easily read. No
person shall violate any of the terms or conditions of such a special permit.

    Sec. 48. Minnesota Statutes 2011 Supplement, section 169.86, subdivision 5, is
amended to read:
    Subd. 5. Fees; proceeds deposited; appropriation. The commissioner, with
respect to highways under the commissioner's jurisdiction, may charge a fee for each
permit issued. All such fees for permits issued by the commissioner of transportation shall
must be deposited in the state treasury and credited to the trunk highway fund. Except
for those annual permits for which the permit fees are specified elsewhere in this chapter,
the fees shall be are:
    (a) $15 for each single trip permit.
    (b) $36 for each job permit. A job permit may be issued for like loads carried on
a specific route for a period not to exceed two months. "Like loads" means loads of the
same product, weight, and dimension.
    (c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
months. Annual permits may be issued for:
    (1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety
or well-being of the public;
    (2) motor vehicles which that travel on interstate highways and carry loads
authorized under subdivision 1a;
    (3) motor vehicles operating with gross weights authorized under section 169.826,
subdivision 1a ;
    (4) special pulpwood vehicles described in section 169.863;
    (5) motor vehicles bearing snowplow blades not exceeding ten feet in width;
    (6) noncommercial transportation of a boat by the owner or user of the boat;
    (7) motor vehicles carrying bales of agricultural products authorized under section
169.862 ; and
(8) special milk-hauling vehicles authorized under section 169.867.
    (d) $120 for an oversize annual permit to be issued for a period not to exceed 12
consecutive months. Annual permits may be issued for:
    (1) mobile cranes;
    (2) construction equipment, machinery, and supplies;
    (3) manufactured homes and manufactured storage buildings;
    (4) implements of husbandry;
    (5) double-deck buses;
    (6) commercial boat hauling and transporting waterfront structures, including, but
not limited to, portable boat docks and boat lifts;
    (7) three-vehicle combinations consisting of two empty, newly manufactured trailers
for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however,
the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer
only while operating on twin-trailer routes designated under section 169.81, subdivision 3,
paragraph (c); and
(8) vehicles operating on that portion of marked Trunk Highway 36 described in
section 169.81, subdivision 3, paragraph (e).
    (e) For vehicles which that have axle weights exceeding the weight limitations of
sections 169.823 to 169.829, an additional cost added to the fees listed above. However,
this paragraph applies to any vehicle described in section 168.013, subdivision 3,
paragraph (b), but only when the vehicle exceeds its gross weight allowance set forth in
that paragraph, and then the additional cost is for all weight, including the allowance
weight, in excess of the permitted maximum axle weight. The additional cost is equal
to the product of the distance traveled times the sum of the overweight axle group cost
factors shown in the following chart:

		Overweight Axle Group Cost Factors
	Weight (pounds)		Cost Per Mile For Each Group Of:
	exceeding weight limitations on axles		Two consecutive axles spaced within 8 feet or less		Three consecutive axles spaced within 9 feet or less		Four consecutive axles spaced within 14 feet or less
	0-2,000		.12		.05		.04
	2,001-4,000		.14		.06		.05
	4,001-6,000		.18		.07		.06
	6,001-8,000		.21		.09		.07
	8,001-10,000		.26		.10		.08
	10,001-12,000		.30		.12		.09
	12,001-14,000		Not permitted		.14		.11
	14,001-16,000		Not permitted		.17		.12
	16,001-18,000		Not permitted		.19		.15
	18,001-20,000		Not permitted		Not permitted		.16
	20,001-22,000		Not permitted		Not permitted		.20

The amounts added are rounded to the nearest cent for each axle or axle group. The
additional cost does not apply to paragraph (c), clauses (1) and (3).
For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
in addition to the normal permit fee. Miles must be calculated based on the distance
already traveled in the state plus the distance from the point of detection to a transportation
loading site or unloading site within the state or to the point of exit from the state.
    (f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
or oversize and overweight, mobile cranes; construction equipment, machinery, and
supplies; implements of husbandry; and commercial boat hauling. The fees for the permit
are as follows:

	Gross Weight (pounds) of Vehicle		Annual Permit Fee
	90,000	or less	$200
	90,001	- 100,000	$300
	100,001	- 110,000	$400
	110,001	- 120,000	$500
	120,001	- 130,000	$600
	130,001	- 140,000	$700
	140,001	- 145,000	$800
	145,001	- 155,000	$900

If the gross weight of the vehicle is more than 145,000 155,000 pounds the permit fee is
determined under paragraph (e).
    (g) For vehicles which exceed the width limitations set forth in section 169.80 by
more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a)
when the permit is issued while seasonal load restrictions pursuant to section 169.87 are
in effect.
    (h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on
a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
subdivision 2 , 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000
pounds on a tridem rear axle must limit the gross vehicle weight to not more than 62,000
pounds.
    (i) $300 for a motor vehicle described in section 169.8261. The fee under this
paragraph must be deposited as follows:
    (1) in fiscal years 2005 through 2010:
    (i) the first $50,000 in each fiscal year must be deposited in the trunk highway fund
for costs related to administering the permit program and inspecting and posting bridges;
    (ii) all remaining money in each fiscal year must be deposited in a bridge inspection
and signing account in the special revenue fund. Money in the account is appropriated
to the commissioner for:
    (A) inspection of local bridges and identification of local bridges to be posted,
including contracting with a consultant for some or all of these functions; and
    (B) erection of weight-posting signs on local bridges; and
    (2) in fiscal year 2011 and subsequent years must be deposited in the trunk highway
fund.
    (j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating
under authority of section 169.824, subdivision 2, paragraph (a), clause (2).

    Sec. 49. Minnesota Statutes 2010, section 169.99, subdivision 1b, is amended to read:
    Subd. 1b. Speed. The uniform traffic ticket must provide a blank or space wherein
an officer who issues a citation for a violation of a speed limit of 55 or 60 miles per
hour must specify whether the speed was greater than ten miles per hour in excess of a
55 miles per hour speed limit, or more than five miles per hour in excess of a 60 miles
per hour the speed limit.

    Sec. 50. Minnesota Statutes 2010, section 169A.54, subdivision 1, is amended to read:
    Subdivision 1. Revocation periods for DWI convictions. Except as provided in
subdivision 7, the commissioner shall revoke the driver's license of a person convicted
of violating section 169A.20 (driving while impaired) or an ordinance in conformity
with it, as follows:
    (1) not less than 30 days for an offense under section 169A.20, subdivision 1
(driving while impaired crime), not less than 30 days;
    (2) not less than 90 days for an offense under section 169A.20, subdivision 2 (refusal
to submit to chemical test crime), not less than 90 days;
    (3) not less than one year for:
(i) an offense occurring within ten years of a qualified prior impaired driving
incident, or;
(ii) an offense occurring after two qualified prior impaired driving incidents, not
less than one year,; or if
(iii) an offense occurring when a person has an alcohol concentration of twice the
legal limit or more as measured at the time, or within two hours of the time, of the offense
and the person has no qualified prior impaired driving incident within ten years;
(4) not less than two years for an offense occurring under clause (3), item (i) or (ii),
and the test results indicate an alcohol concentration of twice the legal limit or more,
not less than two years and until the court has certified that treatment or rehabilitation
has been successfully completed where prescribed in accordance with section 169A.70
(chemical use assessments);
    (4) (5) not less than three years for an offense occurring within ten years of the
first of two qualified prior impaired driving incidents or occurring after three qualified
prior impaired driving incidents, not less than three years, together and with denial under
section 171.04, subdivision 1, clause (10), until rehabilitation is established according to
standards established by the commissioner; and
    (5) (6) not less than four years for an offense occurring within ten years of the first of
three qualified prior impaired driving incidents, not less than four years, together and with
denial under section 171.04, subdivision 1, clause (10), until rehabilitation is established
according to standards established by the commissioner; or
(6) (7) not less than six years for an offense occurring after four or more qualified
prior impaired driving incidents, not less than six years, together and with denial under
section 171.04, subdivision 1, clause (10), until rehabilitation is established according to
standards established by the commissioner.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 51. Minnesota Statutes 2010, section 169A.54, subdivision 6, is amended to read:
    Subd. 6. Applicability of implied consent revocation. (a) Any person whose
license has been revoked pursuant to section 169A.52 (license revocation for test failure
or refusal) as the result of the same incident, and who does not have a qualified prior
impaired driving incident, is subject to the mandatory revocation provisions of subdivision
1, clause (1) or (2), in lieu of the mandatory revocation provisions of section 169A.52.
(b) Paragraph (a) does not apply to:
(1) a person whose license has been revoked under subdivision 2 (driving while
impaired by person under age 21); or
(2) a person whose driver's license has been revoked for, or who is charged with,
(i) an alcohol concentration of twice the legal limit or more as measured at the time, or
within two hours, of the time of the offense; or (ii) a violation of section 169A.20 (driving
while impaired) with an aggravating factor described in section 169A.03, subdivision
3 , clause (2) or (3).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 52. Minnesota Statutes 2010, section 171.01, subdivision 41, is amended to read:
    Subd. 41. Motorized bicycle. "Motorized bicycle" means a bicycle that is propelled
by an electric or a liquid fuel motor of a piston displacement capacity of 50 cubic
centimeters or less, and a maximum of two brake horsepower, which is capable of a
maximum speed of not more than 30 miles per hour on a flat surface with not more than
one percent grade in any direction when the motor is engaged. "Motorized bicycle"
includes an electric-assisted bicycle as defined in section 169.011, subdivision 27 has the
meaning given in section 169.011, subdivision 45.

    Sec. 53. Minnesota Statutes 2010, section 171.03, is amended to read:
171.03 PERSONS EXEMPT.
    The following persons are exempt from license hereunder:
    (a) A person in the employ or service of the United States federal government is
exempt while driving or operating a motor vehicle owned by or leased to the United
States federal government.
    (b) A person in the employ or service of the United States federal government is
exempt from the requirement to possess a valid class A, class B, or class C commercial
driver's license while driving or operating for military purposes a commercial motor
vehicle for the United States federal government if the person is:
    (1) on active duty in the U. S. Coast Guard;
    (2) on active duty in a branch of the U. S. armed forces, which includes the Army,
Air Force, Navy, and Marine Corps;
    (3) a member of a reserve component of the U. S. armed forces; or
    (4) on active duty in the Army National Guard or Air National Guard, which
includes (i) a member on full-time National Guard duty, (ii) a member undergoing
part-time National Guard training, and (iii) a National Guard military technician, who is a
civilian required to wear a military uniform.
The exemption provided under this paragraph does not apply to a U. S. armed forces
reserve technician.
    (c) Any person while driving or operating any farm tractor or implement of
husbandry temporarily on a highway is exempt. For purposes of this section, an all-terrain
vehicle, as defined in section 84.92, subdivision 8, an off-highway motorcycle, as defined
in section 84.787, subdivision 7, and an off-road vehicle, as defined in section 84.797,
subdivision 7 , are not implements of husbandry.
    (d) A nonresident who is at least 15 years of age and who has in immediate
possession a valid driver's license issued to the nonresident in the home state or country
may operate a motor vehicle in this state only as a driver.
    (e) A nonresident who has in immediate possession a valid commercial driver's
license issued by a state or jurisdiction in accordance with the standards of Code of
Federal Regulations, title 49, part 383, and who is operating in Minnesota the class of
commercial motor vehicle authorized by the issuing state or jurisdiction is exempt.
    (f) Any nonresident who is at least 18 years of age, whose home state or country does
not require the licensing of drivers may operate a motor vehicle as a driver, but only for a
period of not more than 90 days in any calendar year, if the motor vehicle so operated is
duly registered for the current calendar year in the home state or country of the nonresident.
    (g) Any person who becomes a resident of the state of Minnesota and who has in
possession a valid driver's license issued to the person under and pursuant to the laws of
some other state or jurisdiction or by military authorities of the United States may operate
a motor vehicle as a driver, but only for a period of not more than 60 days after becoming
a resident of this state, without being required to have a Minnesota driver's license as
provided in this chapter.
    (h) Any person who becomes a resident of the state of Minnesota and who has in
possession a valid commercial driver's license issued by another state or jurisdiction in
accordance with the standards of Code of Federal Regulations, title 49, part 383, is exempt
for not more than 30 days after becoming a resident of this state.
    (i) Any person operating a snowmobile, as defined in section 84.81, is exempt.
(j) A railroad operator, as defined in section 169.035, subdivision 4, paragraph (a),
is exempt while operating a railroad locomotive or train, or on-track equipment while
being operated upon rails. This exemption includes operation while crossing a street or
highway, whether public or private.

    Sec. 54. Minnesota Statutes 2011 Supplement, section 171.05, subdivision 2, is
amended to read:
    Subd. 2. Person less than 18 years of age. (a) Notwithstanding any provision
in subdivision 1 to the contrary, the department may issue an instruction permit to an
applicant who is 15, 16, or 17 years of age and who:
(1) has completed a course of driver education in another state, has a previously
issued valid license from another state, or is enrolled in either:
(i) the applicant is enrolled in behind-the-wheel training in a public, private, or
commercial driver education program that utilizes simulation or behind-the-wheel
instruction and that is approved by the commissioner of public safety; and
(ii) the applicant:
(A) has completed the classroom phase of instruction in a public, private, or
commercial driver education program that is approved by the commissioner of public
safety and that includes classroom and behind-the-wheel training; or
(ii) an approved behind-the-wheel driver education program
(B) has completed home-school driver training, when the student is receiving
full-time instruction in a home school within the meaning of sections 120A.22 and
120A.24 , the student is working toward a homeschool home-school diploma, the
student is taking home-classroom driver training with classroom materials approved by
the commissioner of public safety, and the student's parent has certified the student's
homeschool home-school and home-classroom driver training status on the form approved
by the commissioner; or
(C) has completed an Internet-based theory driver education program that is
approved by the commissioner of public safety;
(2) has completed the classroom phase of instruction in the driver education program;
(3) (2) has passed a test of the applicant's eyesight;
(4) (3) has passed a department-administered test of the applicant's knowledge
of traffic laws;
(5) (4) has completed the required application, which must be approved by (i) either
parent when both reside in the same household as the minor applicant or, if otherwise,
then (ii) the parent or spouse of the parent having custody or, in the event there is no
court order for custody, then (iii) the parent or spouse of the parent with whom the minor
is living or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the
minor, (v) the foster parent or the director of the transitional living program in which the
child resides or, in the event a person under the age of 18 has no living father, mother,
or guardian, or is married or otherwise legally emancipated, then (vi) the applicant's
adult spouse, adult close family member, or adult employer; provided, that the approval
required by this clause contains a verification of the age of the applicant and the identity of
the parent, guardian, adult spouse, adult close family member, or adult employer; and
(6) (5) has paid the fee required in section 171.06, subdivision 2.
(b) For the purposes of determining compliance with the certification of paragraph
(a), clause (1), item (ii) (B), the commissioner may request verification of a student's
homeschool home-school status from the superintendent of the school district in which the
student resides and the superintendent shall provide that verification.
(c) The instruction permit is valid for two years from the date of application and
may be renewed upon payment of a fee equal to the fee for issuance of an instruction
permit under section 171.06, subdivision 2.
(d) A provider of an Internet-based theory driver education program approved by
the commissioner shall issue a certificate of completion to each person who successfully
completes the program. The commissioner shall furnish numbered certificate forms to
approved providers who shall pay the commissioner a fee of $2 for each certificate. The
commissioner shall deposit proceeds of the fee in the driver services operating account in
the special revenue fund. The commissioner shall terminate the fee when the department
has fully recovered its costs to implement Internet driver education under this section.
Proceeds from the fee under this paragraph are annually appropriated to the commissioner
from the driver services operating account for administrative costs to implement Internet
driver education.

    Sec. 55. Minnesota Statutes 2010, section 171.061, subdivision 4, is amended to read:
    Subd. 4. Fee; equipment. (a) The agent may charge and retain a filing fee of $5 for
each application. Except as provided in paragraph (b) (c), the fee shall cover all expenses
involved in receiving, accepting, or forwarding to the department the applications and
fees required under sections 171.02, subdivision 3; 171.06, subdivisions 2 and 2a; and
171.07 , subdivisions 3 and 3a.
(b) The statutory fees and the filing fees imposed under paragraph (a) may be paid
by credit card or debit card. The driver's license agent may collect a convenience fee on
the statutory fees and filing fees not greater than the cost of processing a credit card or
debit card transaction. The convenience fee must be used to pay the cost of processing
credit card and debit card transactions. The commissioner shall adopt rules to administer
this paragraph, using the exempt procedures of section 14.386, except that section 14.386,
paragraph (b), does not apply.
(b) (c) The department shall maintain the photo identification equipment for all
agents appointed as of January 1, 2000. Upon the retirement, resignation, death, or
discontinuance of an existing agent, and if a new agent is appointed in an existing office
pursuant to Minnesota Rules, chapter 7404, and notwithstanding the above or Minnesota
Rules, part 7404.0400, the department shall provide and maintain photo identification
equipment without additional cost to a newly appointed agent in that office if the office
was provided the equipment by the department before January 1, 2000. All photo
identification equipment must be compatible with standards established by the department.
(c) (d) A filing fee retained by the agent employed by a county board must be paid
into the county treasury and credited to the general revenue fund of the county. An
agent who is not an employee of the county shall retain the filing fee in lieu of county
employment or salary and is considered an independent contractor for pension purposes,
coverage under the Minnesota State Retirement System, or membership in the Public
Employees Retirement Association.
(d) (e) Before the end of the first working day following the final day of the
reporting period established by the department, the agent must forward to the department
all applications and fees collected during the reporting period except as provided in
paragraph (c) (d).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 56. [171.0703] INTERNET-BASED DRIVER EDUCATION.
The commissioner shall include in administrative rules on Internet-based theory
driver education programs a requirement that a program may offer no more than three
hours of instruction per day to a student.

    Sec. 57. Minnesota Statutes 2011 Supplement, section 171.075, subdivision 1, is
amended to read:
    Subdivision 1. Anatomical gift account. An anatomical gift account is established
in the special revenue fund. The account consist of funds donated under sections 168.12
168.013, subdivision 5 22, and 171.06, subdivision 2, and any other money donated,
allotted, transferred, or otherwise provided to the account. Money in the account is
annually appropriated to the commissioner for (1) grants under subdivision 2, and (2)
administrative expenses in implementing the donation and grant program.
EFFECTIVE DATE.This section is effective January 1, 2013.

    Sec. 58. Minnesota Statutes 2010, section 171.12, subdivision 6, is amended to read:
    Subd. 6. Certain convictions not recorded. (a) Except as provided in paragraph
(b), the department shall not keep on the record of a driver any conviction for a violation
of a speed limit of 55 or 60 miles per hour unless the violation consisted of a speed greater
than ten miles per hour in excess of a 55 miles per hour the speed limit, or more than five
miles per hour in excess of a 60 miles per hour speed limit.
(b) This subdivision does not apply to (1) a violation that occurs in a commercial
motor vehicle, or (2) a violation committed by a holder of a class A, B, or C commercial
driver's license, without regard to whether the violation was committed in a commercial
motor vehicle or another vehicle.

    Sec. 59. Minnesota Statutes 2010, section 171.30, subdivision 1, is amended to read:
    Subdivision 1. Conditions of issuance. (a) The commissioner may issue a limited
license to the driver under the conditions in paragraph (b) in any case where a person's
license has been:
(1) suspended under section 171.18, 171.173, or 171.186;
(2) revoked, canceled, or denied under section:
(i) 169.792;
(ii) 169.797;
(iii) 169A.52:
(A) subdivision 3, paragraph (a), clause (1) or (2);
(B) subdivision 3, paragraph (a), clause (4), (5), or (6), if in compliance with section
171.306 ;
(C) subdivision 4, paragraph (a), clause (1) or (2), if the test results indicate an
alcohol concentration of less than twice the legal limit;
(D) subdivision 4, paragraph (a), clause (4), (5), or (6), if in compliance with section
171.306 ;
(iv) 171.17; or
(v) 171.172; or
(3) revoked, canceled, or denied under section 169A.54:
(i) subdivision 1, clause (1), if the test results indicate an alcohol concentration
of less than twice the legal limit;
(ii) subdivision 1, clause (2);
(iii) subdivision 1, clause (4), (5), or (6), or (7), if in compliance with section
171.306 ; or
(iv) subdivision 2, if the person does not have a qualified prior impaired driving
incident as defined in section 169A.03, subdivision 22, on the person's record, and the test
results indicate an alcohol concentration of less than twice the legal limit.
(b) The following conditions for a limited license under paragraph (a) include:
(1) if the driver's livelihood or attendance at a chemical dependency treatment or
counseling program depends upon the use of the driver's license;
(2) if the use of a driver's license by a homemaker is necessary to prevent the
substantial disruption of the education, medical, or nutritional needs of the family of
the homemaker; or
(3) if attendance at a postsecondary institution of education by an enrolled student of
that institution depends upon the use of the driver's license.
(c) The commissioner in issuing a limited license may impose such conditions and
limitations as in the commissioner's judgment are necessary to the interests of the public
safety and welfare including reexamination as to the driver's qualifications. The license
may be limited to the operation of particular vehicles, to particular classes and times of
operation, and to particular conditions of traffic. The commissioner may require that an
applicant for a limited license affirmatively demonstrate that use of public transportation
or carpooling as an alternative to a limited license would be a significant hardship.
(d) For purposes of this subdivision:
(1) "homemaker" refers to the person primarily performing the domestic tasks in a
household of residents consisting of at least the person and the person's dependent child
or other dependents; and
(2) "twice the legal limit" means an alcohol concentration of two times the limit
specified in section 169A.20, subdivision 1, clause (5).
(e) The limited license issued by the commissioner shall clearly indicate the
limitations imposed and the driver operating under the limited license shall have the
license in possession at all times when operating as a driver.
(f) In determining whether to issue a limited license, the commissioner shall consider
the number and the seriousness of prior convictions and the entire driving record of the
driver and shall consider the number of miles driven by the driver annually.
(g) If the person's driver's license or permit to drive has been revoked under
section 169.792 or 169.797, the commissioner may only issue a limited license to the
person after the person has presented an insurance identification card, policy, or written
statement indicating that the driver or owner has insurance coverage satisfactory to
the commissioner of public safety. The commissioner of public safety may require
the insurance identification card provided to satisfy this subdivision be certified by the
insurance company to be noncancelable for a period not to exceed 12 months.
(h) The limited license issued by the commissioner to a person under section
171.186, subdivision 4 , must expire 90 days after the date it is issued. The commissioner
must not issue a limited license to a person who previously has been issued a limited
license under section 171.186, subdivision 4.
(i) The commissioner shall not issue a limited driver's license to any person
described in section 171.04, subdivision 1, clause (6), (7), (8), (11), or (14).
(j) The commissioner shall not issue a class A, class B, or class C limited license.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 60. Minnesota Statutes 2010, section 171.306, subdivision 4, is amended to read:
    Subd. 4. Issuance of restricted license. (a) The commissioner shall issue a class
D driver's license, subject to the applicable limitations and restrictions of this section,
to a program participant who meets the requirements of this section and the program
guidelines. The commissioner shall not issue a license unless the program participant has
provided satisfactory proof that:
(1) a certified ignition interlock device has been installed on the participant's motor
vehicle at an installation service center designated by the device's manufacturer; and
(2) the participant has insurance coverage on the vehicle equipped with the ignition
interlock device. The commissioner shall require the participant to present an insurance
identification card, policy, or written statement as proof of insurance coverage, and may
require the insurance identification card provided be certified by the insurance company to
be noncancelable for a period not to exceed 12 months.
(b) A license issued under authority of this section must contain a restriction
prohibiting the program participant from driving, operating, or being in physical control of
any motor vehicle not equipped with a functioning ignition interlock device certified by
the commissioner. A participant may drive an employer-owned vehicle not equipped with
an interlock device while in the normal course and scope of employment duties pursuant
to the program guidelines established by the commissioner and with the employer's
written consent.
(c) A program participant whose driver's license has been revoked under section
169A.52, subdivision 3 , paragraph (a), clause (1), (2), or (3), or subdivision 4, paragraph
(a), clause (1), (2), or (3), or section 169A.54, subdivision 1, clause (1), (2), or (3), or (4),
may apply for conditional reinstatement of the driver's license, subject to the ignition
interlock restriction.
(d) A program participant whose driver's license has been revoked, canceled, or
denied under section 169A.52, subdivision 3, paragraph (a), clause (4), (5), or (6), or
subdivision 4, paragraph (a), clause (4), (5), or (6), or section 169A.54, subdivision 1,
clause (4), (5), or (6), or (7), may apply for a limited license, subject to the ignition
interlock restriction, if the program participant is enrolled in a licensed chemical
dependency treatment or rehabilitation program as recommended in a chemical use
assessment, and if the participant meets the other applicable requirements of section
171.30 . After completing a licensed chemical dependency treatment or rehabilitation
program and one year of limited license use without violating the ignition interlock
restriction, the conditions of limited license use, or program guidelines, the participant
may apply for conditional reinstatement of the driver's license, subject to the ignition
interlock restriction. If the program participant's ignition interlock device subsequently
registers a positive breath alcohol concentration of 0.02 or higher, the commissioner shall
cancel the driver's license, and the program participant may apply for another limited
license according to this paragraph.
(e) Notwithstanding any statute or rule to the contrary, the commissioner has
authority to determine when a program participant is eligible for restoration of full driving
privileges, except that the commissioner shall not reinstate full driving privileges until the
program participant has met all applicable prerequisites for reinstatement under section
169A.55 and until the program participant's device has registered no positive breath
alcohol concentrations of 0.02 or higher during the preceding 90 days.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 61. Minnesota Statutes 2010, section 174.02, is amended by adding a subdivision
to read:
    Subd. 9. Alternative financing and investment in a pilot transportation
project. (a) The commissioner may select one pilot transportation project on the trunk
highway system to implement the authority granted in this subdivision. In connection
with this pilot project, the commissioner may enter into agreements with governmental
or nongovernmental entities, including private and nonprofit entities, to finance or invest
in the transportation project, including repayment agreements. An agreement under this
subdivision is subject to (1) the availability of state money or other dedicated revenue or
resources; and (2) the approval of the commissioner of management and budget.
(b) The commissioner shall submit to the chairs and ranking minority members of
the house of representatives and senate committees having jurisdiction over transportation
policy and finance, a listing of all agreements executed under this subdivision. The listing
must identify each agreement, the contracting entities, contract amount, duration, and any
repayment requirements. The listing may be submitted electronically, and is subject
to section 3.195, subdivision 1.
(c) The pilot project is subject to transportation planning, programming, and
procurement requirements. Use of this subdivision must not result in the delay of any
project programmed in the statewide transportation improvement program.
(d) This subdivision does not preempt any other statute or provide any new toll
facility authority or design-build contracting authority.
(e) Any repayment agreement under this subdivision must comply with all applicable
debt and other financial policies and requirements.

    Sec. 62. Minnesota Statutes 2010, section 174.56, is amended to read:
174.56 REPORT ON MAJOR HIGHWAY PROJECTS AND TRUNK
HIGHWAY FUND EXPENDITURES.
    Subdivision 1. Report required. (a) The commissioner of transportation shall
submit a report on January 15, 2009, and on January by December 15 of each year
thereafter, on (1) the status of major highway projects completed during the previous two
years or under construction or planned during the year of the report and for the ensuing 15
years; and (2) trunk highway fund expenditures.
(b) For purposes of this section, a "major highway project" is a highway project that
has a total cost for all segments that the commissioner estimates at the time of the report to
be at least (1) $25,000,000 $15,000,000 in the metropolitan highway construction district,
or (2) $10,000,000 $5,000,000 in any nonmetropolitan highway construction district.
    Subd. 2. Report contents; major highway projects. For each major highway
project the report must include:
    (1) a description of the project sufficient to specify its scope and location;
    (2) a history of the project, including, but not limited to, previous official actions
by the department or the appropriate area transportation partnership, or both, the date on
which the project was first included in the state transportation improvement plan, the cost
of the project at that time, the planning estimate for the project, the engineer's estimate, the
award price, the final cost as of six months after substantial completion, including any
supplemental agreements and cost overruns or cost savings, the dates of environmental
approval, the dates of municipal approval, the date of final geometric layout, and the date
of establishment of any construction limits;
    (3) the project's priority listing or rank within its construction district, if any, as
well as the reasons for that listing or rank, the criteria used in prioritization or rank, any
changes in that prioritization or rank since the project was first included in a department
work plan, and the reasons for those changes; and
    (4) past and potential future reasons for delay in letting or completing the project,
details of all project cost changes that exceed $500,000, and specific modifications to the
overall program that are made as a result of delays and project cost changes;
(5) two representative trunk highway construction projects, one each from the
department's metropolitan district and from greater Minnesota, and for each project report
the cost of environmental mitigation and compliance; and
(6) the annual budget for products and services for each Department of
Transportation district and office, with comparison to actual spending and including
measures of productivity for the previous fiscal year.
    Subd. 2a. Report contents; trunk highway fund expenditures. The commissioner
shall include in the report information on the total expenditures from the trunk highway
fund during the previous fiscal year, for each Department of Transportation district, in
the following categories: road construction; planning; design and engineering; labor;
compliance with environmental regulations; administration; acquisition of right-of-way,
including costs for attorney fees and other compensation for property owners; litigation
costs, including payment of claims, settlements, and judgments; maintenance; and road
operations.
    Subd. 3. Department resources. The commissioner shall prepare and submit the
report with existing department staff and resources.
EFFECTIVE DATE.This section is effective August 1, 2012, except that (1) the
changes in subdivision 2, clause (2), apply to projects that are substantially completed
on or after July 1, 2012; and (2) subdivision 2, clause (6), is effective beginning with the
report due by December 15, 2013.

    Sec. 63. Minnesota Statutes 2010, section 221.0314, subdivision 3a, is amended to
read:
    Subd. 3a. Waiver for other medical condition. (a) The commissioner may grant
a waiver to a person who is not physically qualified to drive under Code of Federal
Regulations, title 49, section 391.41, paragraph (b)(3) to (b)(13). A waiver granted under
this subdivision applies to intrastate transportation only.
(b) A person who wishes to obtain a waiver under this subdivision must give the
commissioner the following information:
(1) the applicant's name, address, and telephone number;
(2) the name, address, and telephone number of an employer coapplicant, if any;
(3) a description of the applicant's experience in driving the type of vehicle to be
operated under the waiver;
(4) a description of the type of driving to be done under the waiver;
(5) a description of any modifications to the vehicle the applicant intends to drive
under the waiver that are designed to accommodate the applicant's medical condition or
disability;
(6) whether the applicant has been granted another waiver under this subdivision;
(7) a copy of the applicant's current driver's license;
(8) a copy of a medical examiner's certificate showing that the applicant is medically
unqualified to drive unless a waiver is granted;
(9) a statement from the applicant's treating physician that includes:
(i) the extent to which the physician is familiar with the applicant's medical history;
(ii) a description of the applicant's medical condition for which a waiver is necessary;
(iii) assurance that the applicant has the ability and willingness to follow any course
of treatment prescribed by the physician, including the ability to self-monitor or manage
the medical condition; and
(iv) the physician's professional opinion that the applicant's condition will not
adversely affect the applicant's ability to operate a motor vehicle safely; and
(10) any other information considered necessary by the commissioner including
requiring a physical examination or medical report from a physician who specializes
in a particular field of medical practice.
(c) In granting a waiver under this subdivision, the commissioner may impose
conditions the commissioner considers necessary to ensure that an applicant is able to
operate a motor vehicle safely and that the safety of the general public is protected.
(d) A person who is granted a waiver under this subdivision must:
(1) at intervals specified in the waiver, give the commissioner periodic reports from
the person's treating physician, or a medical specialist if the commissioner so requires in
the waiver, that contain the information described in paragraph (b), clause (9), together
with a description of any episode that involved the person's loss of consciousness or loss
of ability to operate a motor vehicle safely; and
(2) immediately report the person's involvement in an accident for which a report is
required under section 169.09, subdivision 7.
(e) The commissioner shall deny an application if, during the three years preceding
the application:
(1) the applicant's driver's license has been suspended under section 171.18,
paragraph (a), clauses (1) to (9), (11), and (12), canceled under section 171.14, or revoked
under section 171.17, 171.172, or 171.174; or
(2) the applicant has been convicted of a violation under section 171.24; or
(2) (3) the applicant has been convicted of a disqualifying offense, as defined in
Code of Federal Regulations, title 49, section 383.51, paragraph (b), which is incorporated
by reference.
(f) The commissioner may deny an application or may immediately revoke a
waiver granted under this subdivision. Notice of the commissioner's reasons for denying
an application or for revoking a waiver must be in writing and must be mailed to
the applicant's or waiver holder's last known address by certified mail, return receipt
requested. A person whose application is denied or whose waiver is revoked is entitled to
a hearing under chapter 14.
(g) A waiver granted under this subdivision expires on the date of expiration shown
on the medical examiner's certificate described in paragraph (b), clause (8).

    Sec. 64. Minnesota Statutes 2010, section 222.50, subdivision 4, is amended to read:
    Subd. 4. Contract. The commissioner may negotiate and enter into contracts for the
purpose of rail service improvement and may incorporate funds available from the federal
rail service continuation program government. The participants in these contracts shall be
railroads, rail users, and the department, and may be political subdivisions of the state and
the federal government. In such contracts, participation by all parties shall be voluntary.
The commissioner may provide a portion of the money required to carry out the terms of
any such contract by expenditure from the rail service improvement account.

    Sec. 65. Minnesota Statutes 2010, section 222.51, is amended to read:
222.51 PARTICIPATION BY POLITICAL SUBDIVISION.
The governing body of any political subdivision of the state may, with the approval
of the commissioner, appropriate money for rail service improvement and may participate
in the state rail service improvement program and the federal rail service continuation
program programs.

    Sec. 66. Minnesota Statutes 2010, section 222.53, is amended to read:
222.53 ACCEPTANCE OF FEDERAL MONEY.
The commissioner may exercise those powers necessary for the state to qualify
for, accept, and disburse any federal money that may be made available pursuant to the
provisions of the federal rail service continuation program, including the power to:
(1) establish an adequate plan for rail service in the state as part of an overall
planning process for all transportation services in the state, including a suitable process for
updating, revising, and amending the plan;
(2) administer and coordinate the plan with other state agencies, and provide for the
equitable distribution of resources;
(3) develop, promote, and support safe, adequate, and efficient rail transportation
services; employ qualified personnel; maintain adequate programs of investigation,
research, promotion, and development, with provisions for public participation; and take
all practical steps to improve transportation safety and reduce transportation-related
energy utilization and pollution;
(4) adopt and maintain adequate procedures for financial control, accounting, and
performance evaluation in order to assure proper use of state and federal money;
(5) do all things otherwise necessary to maximize federal assistance to the state
under the federal rail service continuation program.

    Sec. 67. Minnesota Statutes 2010, section 222.63, subdivision 9, is amended to read:
    Subd. 9. Rail bank property use; petty misdemeanors. (a) Except for the
actions of road authorities and their agents, employees, and contractors, and of utilities,
in carrying out their duties imposed by permit, law, or contract, and except as otherwise
provided in this section, it is unlawful to knowingly perform any of the following activities
on rail bank property:
    (1) obstruct any trail;
    (2) deposit snow or ice;
    (3) remove or place any earth, vegetation, gravel, or rock without authorization;
    (4) obstruct or remove any ditch-draining device, or drain any harmful or dangerous
materials;
    (5) erect a fence, or place or maintain any advertising, sign, or memorial, except
upon authorization by the commissioner of transportation;
    (6) remove, injure, displace, or destroy right-of-way markers or reference or witness
monuments or markers placed to preserve section or quarter-section corners defining
rail bank property limits;
    (7) drive upon any portion of rail bank property, except at approved crossings, and
except where authorized for snowmobiles, emergency vehicles, maintenance vehicles, or
other vehicles authorized to use rail bank property;
    (8) deface, mar, damage, or tamper with any structure, work, material, sign, marker,
paving, guardrail, drain, or any other rail bank appurtenance; or
    (9) park, overhang, or abandon any unauthorized vehicle or implement of husbandry
on, across, or over the limits of rail bank property.;
(10) plow, disc, or perform any other detrimental operation; or
(11) place or maintain any building or structure.
    (b) Unless a greater penalty is provided elsewhere in statute, any violation of this
subdivision is a petty misdemeanor.
    (c) The cost to remove, repair, or perform any other corrective action necessitated by
a violation of this subdivision may be charged to the violator.

    Sec. 68. Minnesota Statutes 2010, section 574.26, subdivision 1a, is amended to read:
    Subd. 1a. Exemptions: certain manufacturers; commissioner of transportation;
road maintenance. (a) Sections 574.26 to 574.32 do not apply to a manufacturer of
public transit buses that manufactures at least 100 public transit buses in a calendar year.
For purposes of this section, "public transit bus" means a motor vehicle designed to
transport people, with a design capacity for carrying more than 40 passengers, including
the driver. The term "public transit bus" does not include a school bus, as defined in
section 169.011, subdivision 71.
(b) At the discretion of the commissioner of transportation, sections 574.26 to
574.32 do not apply to any projects of the Department of Transportation (1) costing less
than $75,000 the amount in section 471.345, subdivision 3, or (2) involving the permanent
or semipermanent installation of heavy machinery, fixtures, or other capital equipment to
be used primarily for maintenance or repair.
(c) Sections 574.26 to 574.32 do not apply to contracts for snow removal, ice
removal, grading, or other similar routine road maintenance on town roads.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 69. Minnesota Statutes 2010, section 574.26, subdivision 2, is amended to read:
    Subd. 2. Terms. Except as provided in sections 574.263 and 574.264 or if the
amount of the contract is $75,000 or less than the amount in section 471.345, subdivision
3, a contract with a public body for the doing of any public work is not valid unless the
contractor gives (1) a performance bond to the public body with whom the contractor
entered into the contract, for the use and benefit of the public body to complete the
contract according to its terms, and conditioned on saving the public body harmless from
all costs and charges that may accrue on account of completing the specified work, and
(2) a payment bond for the use and benefit of all persons furnishing labor and materials
engaged under, or to perform the contract, conditioned for the payment, as they become
due, of all just claims for the labor and materials. Reasonable attorneys' fees, costs, and
disbursements may be awarded in an action to enforce claims under the act if the action is
successfully maintained or successfully appealed.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 70. VARIANCE; SEAPLANE BASE.
The commissioner of transportation shall grant a variance for Elbow Lake
Municipal-Pride of the Prairie Airport, airport code Y63, to be licensed as a public
seaplane base on Flekkefjord Lake. The commissioner shall establish conditions or
limitations as may be necessary.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 71. ADDITIONS TO REPORTS ON MAJOR HIGHWAY PROJECTS AND
TRUNK HIGHWAY FUND EXPENDITURES.
For 2013 and 2014 reports required under Minnesota Statutes, section 174.56, the
commissioner of transportation shall include the results of evaluations of management
systems currently used by the Department of Transportation. The evaluations must specify
the extent to which the management of data in these systems is consistent with existing
policies and the need for statewide, reliable, and verifiable information. The evaluations
must be performed either by the department's office of internal audit or by an independent
external auditor. The 2013 report must include the evaluation of construction management
systems and the program and project management system. The 2014 report must include
the evaluation of pavement management systems and bridge management systems.

    Sec. 72. MUNICIPAL STATE-AID STREET 2013 ALLOCATION.
(a) Notwithstanding Minnesota Statutes, section 162.13, subdivision 1, the
commissioner of transportation shall allocate the apportionment sum available in the
municipal state-aid street fund, following the deductions under Minnesota Statutes, section
162.12, as provided in this section.
(b) The commissioner shall identify a remuneration sum for each city that:
(1) qualifies for municipal state-aid street funds under Minnesota Statutes, section
162.09, subdivision 4a; and
(2) was not allocated municipal state-aid street funds for calendar year 2012.
(c) The remuneration sum for each city equals the amount the city received under
the allocation of municipal state-aid street funds for calendar year 2011.
(d) For the calendar year 2013 allocation only, the commissioner shall:
(1) allocate to the appropriate city an amount from the apportionment sum equal
to the remuneration sum calculated in paragraph (c); and
(2) allocate the remaining apportionment sum as provided under Minnesota Statutes,
section 162.13, subdivision 1.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 73. ST. LOUIS COUNTY; J-TURN PROHIBITION.
The Department of Transportation may not construct a J-turn at the intersection of
U.S. Highway 53 and County Highway 52 in Cotton Township in St. Louis County.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 74. REPEALER.
Minnesota Statutes 2010, sections 161.08, subdivision 2; 168.012, subdivision 1b;
169A.54, subdivision 5; and 222.48, subdivision 3a, are repealed.

    Sec. 75. EFFECTIVE DATE.
Unless otherwise specified, this act is effective August 1, 2012.