Bill Text: MN SF2321 | 2011-2012 | 87th Legislature | Engrossed

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Bill Title: Omnibus transportation policy bill

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-05-01 - General Orders: Stricken and laid on table [SF2321 Detail]

Download: Minnesota-2011-SF2321-Engrossed.html

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A bill for an act

relating to transportation; providing for alternatives for contracting and
procurement, state aid, traffic regulations and reports, vehicles, vehicle titles,
school buses, overweight vehicles, fuel tax and motor vehicle sales tax
exemptions, transit fares, and studies; providing penalties; appropriating money;
amending Minnesota Statutes 2010, sections 13.72, by adding a subdivision;
116.06, subdivision 22; 161.14, by adding a subdivision; 161.321; 162.02,
subdivisions 2, 3; 162.09, subdivisions 2, 3, 4; 162.13, subdivision 1; 162.155;
168.013, subdivision 3; 168.10, subdivision 1a; 168.27, subdivisions 2, 3, 3c;
168A.01, subdivisions 6a, 8a, 12a, 16, by adding a subdivision; 168A.04,
subdivision 5; 168A.05, subdivision 3; 168A.09, by adding a subdivision;
168A.15, subdivision 2; 168A.151, subdivisions 1, 6; 169.06, subdivision 4;
169.09, subdivision 13; 169.222, subdivision 6; 169.4501, subdivisions 1, 2;
169.4503, subdivisions 5, 20, by adding subdivisions; 169.4582, subdivision 2;
169.79, subdivision 6; 169.86, by adding a subdivision; 169.865, subdivisions
1, 2, 4; 169.872, subdivision 1a; 169.98, subdivisions 1, 3; 174.03, by adding
a subdivision; 221.091, subdivision 2; 296A.07, subdivision 4; 296A.08,
subdivision 3; 297A.68, subdivision 19; 299D.09; 325F.6641; 325F.6644,
subdivisions 1, 2; Minnesota Statutes 2011 Supplement, sections 169.86,
subdivision 5; 297B.03; Laws 2009, chapter 36, article 3, sections 28; 29;
proposing coding for new law in Minnesota Statutes, chapters 161; 171; 174;
repealing Minnesota Statutes 2010, sections 169.441, subdivision 5; 169.445,
subdivision 2; 169.454, subdivision 10.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2010, section 13.72, is amended by adding a subdivision
to read:
    Subd. 17. Construction manager/general contractor data. When the Department
of Transportation undertakes a construction manager/general contractor contract, as
defined and authorized in sections 161.3207 to 161.3209, the provisions of this subdivision
apply.
(a) When the commissioner of transportation solicits a request for qualifications:
(1) the following data are classified as protected nonpublic:
(i) the statement of qualifications scoring evaluation manual; and
(ii) the statement of qualifications evaluations;
(2) the following data are classified as nonpublic: the statement of qualifications
submitted by a potential construction manager/general contractor; and
(3) the following data are classified as private data: identifying information
concerning the members of the technical review committee.
(b) When the commissioner of transportation announces the short list of qualified
construction managers/general contractors, the following data become public:
(1) the statement of qualifications scoring evaluation manual; and
(2) the statement of qualifications evaluations.
(c) When the commissioner of transportation solicits a request for proposals:
(1) the following data are classified as protected nonpublic: the proposal scoring
manual; and
(2) the following data are classified as nonpublic data:
(i) the proposals submitted by a potential construction manager/general contractor;
and
(ii) the proposal evaluations.
(d) When the commissioner of transportation has completed the ranking of proposals
and announces the selected construction manager/general contractor, the proposal
evaluation score or rank and proposal evaluations become public.
(e) When the commissioner of transportation conducts contract negotiations
with a construction manager/general contractor, government data created, collected,
stored, and maintained during those negotiations are nonpublic data until a construction
manager/general contractor contract is fully executed.
(f) When the construction manager/general contractor contract is fully executed or
when the commissioner of transportation decides to use another contract procurement
process other than construction manager/general contractor authority authorized under
section 161.3209, subdivision 3, paragraph (b), all remaining data not already made public
under this subdivision become public.
(g) If the commissioner of transportation rejects all responses to a request for
proposals before a construction manager/general contractor contract is fully executed,
all data other than that data made public under this subdivision retains its classification
until a resolicitation of the request for proposals results in a fully executed construction
manager/general contractor contract, or a determination is made to abandon the project. If
a resolicitation of proposals does not occur within one year of the announcement of the
request for proposals, the remaining data become public.
EFFECTIVE DATE.This section is effective the day following final enactment
and expires one year following the acceptance of ten construction manager/general
contractor contracts.

    Sec. 2. Minnesota Statutes 2010, section 116.06, subdivision 22, is amended to read:
    Subd. 22. Solid waste. "Solid waste" means garbage, refuse, sludge from a water
supply treatment plant or air contaminant treatment facility, and other discarded waste
materials and sludges, in solid, semisolid, liquid, or contained gaseous form, resulting
from industrial, commercial, mining, and agricultural operations, and from community
activities, but does not include hazardous waste; animal waste used as fertilizer; earthen
fill, boulders, rock; concrete diamond grinding and saw slurry associated with the
construction, improvement, or repair of a road when deposited on the road project site in a
manner that is in compliance with best management practices and rules of the agency;
sewage sludge; solid or dissolved material in domestic sewage or other common pollutants
in water resources, such as silt, dissolved or suspended solids in industrial wastewater
effluents or discharges which are point sources subject to permits under section 402 of
the Federal Water Pollution Control Act, as amended, dissolved materials in irrigation
return flows; or source, special nuclear, or by-product material as defined by the Atomic
Energy Act of 1954, as amended.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 3. Minnesota Statutes 2010, section 161.14, is amended by adding a subdivision
to read:
    Subd. 70. Black and Yellow Trail. Legislative Route No. 7, signed as Trunk
Highway 14 as of the effective date of this section, from the border with South Dakota
to the border with Wisconsin, is designated as the "Black and Yellow Trail." The
commissioner shall adopt a suitable design to mark this highway and erect appropriate
signs, subject to section 161.139.

    Sec. 4. [161.318] CONTINGENT APPROPRIATION TO FUND STATE ROAD
OPERATION, MAINTENANCE, PLANNING, AND CONSTRUCTION.
    Subdivision 1. Appropriation for state roads. If, before July 1 of an odd-numbered
year, legislation is not enacted to appropriate money to the commissioner of transportation
for state roads in the next fiscal year, on July 1, an amount sufficient to pay the costs
described in this subdivision is appropriated from the trunk highway fund to the
commissioner of transportation for costs of contracts relating to state roads operation
and maintenance, program planning and delivery, and state road construction. The
appropriation must be sufficient to pay both the described contract costs and the costs of
Department of Transportation employees whose work is essential to the administration
and performance of the contracts. This section applies only to those contracts as to which
funds were encumbered before the July 1 appropriation date. The commissioner of
management and budget shall ensure that the commissioner of transportation is able to
access money under this appropriation. Any subsequent appropriation to the commissioner
of transportation for a biennium in which this subdivision has been applied shall supersede
and replace the funding authorized in this subdivision.
    Subd. 2. Continued operations. If, by July 1 of an odd-numbered year, legislation
has not been enacted to appropriate money for the next biennium to the commissioner
of management and budget for central accounting, procurement, payroll, and human
resources functions, amounts necessary to operate those functions stated in subdivision
1 are appropriated for the next biennium from the general fund to the commissioner of
management and budget. As necessary, the commissioner may transfer a portion of
this appropriation to other state agencies to support carrying out these functions. Any
subsequent appropriation to the commissioner of management and budget for a biennium
in which this section has been applied shall supersede and replace the funding authorized
in this section.

    Sec. 5. [161.3207] CONSTRUCTION MANAGER/GENERAL CONTRACTOR
CONTRACTS; DEFINITIONS.
    Subdivision 1. Scope. The terms used in sections 161.3207 to 161.3209 have the
meanings given them in this section.
    Subd. 2. Acceptance. "Acceptance" means an action of the commissioner
authorizing the execution of a construction manager/general contractor contract.
    Subd. 3. Commissioner. "Commissioner" means the commissioner of
transportation.
    Subd. 4. Construction manager/general contractor. "Construction
manager/general contractor" means a proprietorship, partnership, limited liability
partnership, joint venture, corporation, any type of limited liability company, professional
corporation, or any legal entity selected by the commissioner to act as a construction
manager to manage the construction process, which includes, but is not limited to,
responsibility for the price, schedule, and execution of preconstruction services or the
workmanship of construction performed according to section 161.3209, or both.
    Subd. 5. Construction manager/general contractor contract. "Construction
manager/general contractor contract" means a contract for construction of a project
between a construction manager/general contractor and the commissioner, which
must include terms providing for a price, construction schedule, and workmanship of
the construction performed. The construction manager/general contractor contract
may include provisions for incremental price contracts for specific work packages,
additional work performed, contingencies, or other contract provisions that will allow the
commissioner to negotiate time and cost changes to the contract.
    Subd. 6. Past performance; experience. "Past performance" or "experience" does
not include the exercise or assertion of a person's legal rights.
    Subd. 7. Preconstruction services. "Preconstruction services" means all
non-construction-related services that a construction manager/general contractor is
allowed to perform before execution of a construction manager/general contractor contract
or work package.
    Subd. 8. Preconstruction services contract. "Preconstruction services contract"
means a contract under which a construction manager/general contractor is paid on the
basis of the actual cost to perform the work specified in the contract plus an amount for
overhead and profit for all preconstruction services.
    Subd. 9. Project. "Project" means any project selected by the commissioner as a
construction manager/general contractor project under section 161.3208.
    Subd. 10. Request for proposals; RFP. "Request for proposals" or "RFP" means
the document or publication soliciting proposals for a construction manager/general
contractor contract.
    Subd. 11. Request for qualifications; RFQ. "Request for qualifications" or "RFQ"
means a document or publication used to prequalify and short-list potential construction
managers/general contractors.
    Subd. 12. Work package. "Work package" means the scope of work for a defined
portion of a project. A defined portion includes construction services on any project
aspect, including procuring materials or services.
EFFECTIVE DATE.This section is effective the day following final enactment
and expires one year following the acceptance of ten construction manager/general
contractor contracts.

    Sec. 6. [161.3208] CONSTRUCTION MANAGER/GENERAL CONTRACTOR
AUTHORITY.
    Subdivision 1. Selection authority; limitation. Notwithstanding sections 16C.25,
161.32, and 161.321, or any other law to the contrary, the commissioner may select a
construction manager/general contractor as provided in section 161.3209, and award a
construction manager/general contractor contract. The number of awarded contracts
shall not exceed four in any calendar year.
    Subd. 2. Determination. Final determination to use a construction manager/general
contractor contracting procedure may be made only by the commissioner.
    Subd. 3. Cancellation. The solicitation of construction manager/general contractor
requests for qualifications or proposals does not obligate the commissioner to enter into a
construction manager/general contractor contract. The commissioner may accept or reject
any or all responses received as a result of the request. The solicitation of proposals may
be canceled at any time at the commissioner's sole discretion if cancellation is considered
to be in the state's best interest. If the commissioner rejects all responses or cancels the
solicitation for proposals, the commissioner may resolicit a request for proposals using the
same or different requirements.
    Subd. 4. Reporting. The commissioner shall notify the chairs and ranking minority
members of the senate and house of representatives committees with jurisdiction over
transportation policy and transportation finance each time the commissioner decides to
use the construction manager/general contractor method of procurement and explain why
that method was chosen.
EFFECTIVE DATE.This section is effective the day following final enactment
and expires one year following the acceptance of ten construction manager/general
contractor contracts.

    Sec. 7. [161.3209] CONSTRUCTION MANAGER/GENERAL CONTRACTOR;
PROCEDURES.
    Subdivision 1. Solicitation of proposals. If the commissioner determines that
a construction manager/general contractor method of procurement is appropriate for
a project, the commissioner shall establish a two-phase procedure for awarding the
construction manager/general contractor contract, as described in subdivisions 2 and 3.
    Subd. 2. Phase 1 - request for proposals. (a) The commissioner shall prepare
or have prepared an RFP for each construction manager/general contractor contract as
provided in this section. The RFP must contain, at a minimum, the following elements:
(1) the minimum qualifications of the construction manager/general contractor;
(2) the procedures for submitting proposals and the criteria for evaluation of
qualifications and the relative weight for each criteria;
(3) the form of the contract to be awarded;
(4) the scope of intended construction work;
(5) a listing of the types of preconstruction services that will be required;
(6) an anticipated schedule for commencing and completing the project;
(7) any applicable budget limits for the project;
(8) the requirements for insurance, statutorily required performance, and payment
bonds;
(9) the requirements that the construction manager/general contractor provide a
letter from a surety or insurance company stating that the construction manager/general
contractor is capable of obtaining a performance bond and payment bond covering the
estimated contract cost;
(10) the method for how construction manager/general contractor fees for the
preconstruction services contract will be negotiated;
(11) a statement that past performance or experience does not include the exercise
or assertion of a person's legal rights; and
(12) any other information desired by the commissioner.
(b) Before receiving any responses to the RFP:
(1) the commissioner shall appoint a technical review committee of at least five
individuals, of which one is a Department of Transportation manager who is also a
licensed professional engineer in Minnesota;
(2) the technical review committee shall evaluate the construction manager/general
contractor proposals according to criteria and subcriteria published in the RFP and
procedures established by the commissioner. The commissioner shall, as designated in
the RFP, evaluate construction manager/general contractor proposals on the basis of best
value as defined in section 16C.05, or using the qualifications-based selection process set
forth in section 16C.095, except that subdivision 1 of section 16C.095 shall not apply. If
the commissioner does not receive at least two proposals from construction managers,
the commissioner may:
(i) solicit new proposals;
(ii) revise the RFP and thereafter solicit new proposals using the revised RFP;
(iii) select another allowed procurement method; or
(iv) reject the proposals; and
(3) the technical review committee shall evaluate the responses to the request for
proposals and rank the construction manager/general contractor based on the predefined
criteria set forth in the RFP in accordance with paragraph (a), clause (2).
(c) Unless all proposals are rejected, the commissioner shall conduct contract
negotiations for a preconstruction services contract with the construction manager/general
contractor with the highest ranking. If the construction manager/general contractor with
the highest ranking declines or is unable to reach an agreement, the commissioner may
begin contract negotiations with the next highest ranked construction manager/general
contractor.
(d) Before issuing the RFP, the commissioner may elect to issue a request for
qualifications (RFQ) and short-list the most highly qualified construction managers/general
contractors. The RFQ must include the procedures for submitting statements of
qualification, the criteria for evaluation of qualifications, and the relative weight for each
criterion. The statements of qualifications must be evaluated by the technical review
committee.
    Subd. 3. Phase 2 - construction manager/general contractor contract. (a) Before
conducting any construction-related services, the commissioner shall:
(1) conduct an independent cost estimate for the project or each work package; and
(2) conduct contract negotiations with the construction manager/general contractor
to develop a construction manager/general contractor contract. This contract must include
a minimum construction manager/general contractor self-performing requirement of 30
percent of the negotiated cost. Items designated in the construction manager/general
contractor contract as specialty items may be subcontracted and the cost of any specialty
item performed under the subcontract will be deducted from the cost before computing the
amount of work required to be performed by the contractor.
(b) If the construction manager/general contractor and the commissioner are unable
to negotiate a contract, the commissioner may use other contract procurement processes or
may readvertise the construction manager/general contractor contract. The construction
manager/general contractor may (1) bid or propose on the project if advertised under
section 161.32 or 161.3206 or (2) join a design-build team if advertised under sections
161.3410 to 161.3428.
(c) The commissioner shall provide to all bidders or design-build teams, all data
shared between the commissioner and the construction manager/general contractor during
the contract negotiations under this subdivision.
EFFECTIVE DATE.This section is effective the day following final enactment
and expires one year following the acceptance of ten construction manager/general
contractor contracts.

    Sec. 8. 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) 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 that 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. 9. Minnesota Statutes 2010, section 162.02, subdivision 2, is amended to read:
    Subd. 2. Rules; advisory committee. (a) The rules shall be made and promulgated
by the commissioner acting with the advice of a committee selected by the several county
boards acting through the officers of the statewide association of county commissioners.
The committee shall be composed of nine members so selected that each member shall
be from a different state highway construction district. Not more than five of the nine
members of the committee shall be county commissioners. The remaining members shall
be county highway engineers. In the event that agreement cannot be reached on any rule,
the commissioner's determination shall be final. The rules shall be printed and copies
forwarded to the county engineers of the several counties. For the purposes of this section,
the expedited process for adopting rules established in section 14.389 may be used.
(b) Notwithstanding section 15.059, subdivision 5, the committee does not expire.

    Sec. 10. Minnesota Statutes 2010, section 162.02, subdivision 3, is amended to read:
    Subd. 3. Rules have force of law. The rules shall have the force and effect of law
upon compliance with the provisions of sections 14.05 to 14.28 as provided in chapter 14.

    Sec. 11. Minnesota Statutes 2010, section 162.09, subdivision 2, is amended to read:
    Subd. 2. Rules; advisory committee. (a) The rules shall be made and promulgated
by the commissioner acting with the advice of a committee selected by the governing
bodies of such cities, acting through the officers of the statewide association of municipal
officials. The committee shall be composed of 12 members, so selected that there shall be
one member from each state highway construction district and in addition one member
from each city of the first class. Not more than six members of the committee shall be
elected officials of the cities. The remaining members of the committee shall be city
engineers. In the event that agreement cannot be reached on any rule the commissioner's
determination shall be final. The rules shall be printed and copies forwarded to the clerks
and engineers of the cities. For the purposes of this section, the expedited process for
adopting rules established in section 14.389 may be used.
(b) Notwithstanding section 15.059, subdivision 5, the committee does not expire.

    Sec. 12. Minnesota Statutes 2010, section 162.09, subdivision 3, is amended to read:
    Subd. 3. Rules have force of law. The rules shall have the force and effect of law
upon compliance with the provisions of sections 14.05 to 14.28 as provided in chapter 14.

    Sec. 13. Minnesota Statutes 2010, section 162.09, subdivision 4, is amended to read:
    Subd. 4. Federal census is conclusive. (a) In determining whether any city has
a population of 5,000 or more, the last federal census shall be conclusive, except as
otherwise provided in this subdivision.
(b) The governing body of a city may contract with the United States Bureau of the
Census to take a special census. A certified copy of the results of the census shall be filed
with the appropriate state authorities by the city. The result of the census shall be the
population of the city for the purposes of any law providing that population is a required
qualification for distribution of highway aids under chapter 162. The special census shall
remain in effect until the next federal census is completed and filed. The expense of taking
the special census shall be paid by the city.
(c) If an entire area not heretofore incorporated as a city is incorporated as such
during the interval between federal censuses, its population shall be determined by its
incorporation census. The incorporation census shall be determinative of the population of
the city only until the next federal census.
(d) The population of a city created by the consolidation of two or more previously
incorporated cities shall be determined by the most recent population estimate of the
Metropolitan Council or state demographer, until the first federal decennial census or
special census taken after the consolidation.
(e) The population of a city that is not receiving a municipal state-aid street fund
apportionment shall be determined, upon request of the city, by the most recent population
estimate of the Metropolitan Council or state demographer. A municipal state-aid street
fund apportionment received by the city must be based on this population estimate until
the next federal decennial census or special census.
(f) A city that is found in the most recent federal decennial census to have fewer
than 5,000 population is deemed for the purposes of this chapter and the Minnesota
Constitution, article XIV, to have a population of 5,000 or more under the following
circumstances: (1) immediately before the most recent federal decennial census, the city
was receiving municipal state-aid street fund distributions; and (2) the population of
the city was found in the most recent federal decennial census to be fewer than 5,000.
Following the end of the first calendar year that ends in "4" after the decennial census and
until the next decennial census, the population of any city must be determined under
paragraphs (a) to (e).
EFFECTIVE DATE.This section is effective July 1, 2012.

    Sec. 14. 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 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. For purposes of this subdivision, population of a city is the greater of 5,000 or the
number calculated under section 162.09, subdivision 4, paragraph (a), (b), (c), (d), or (e).
EFFECTIVE DATE.This section is effective July 1, 2012.

    Sec. 15. Minnesota Statutes 2010, section 162.155, is amended to read:
162.155 RULES FOR VARIANCES RULEMAKING.
(a) The commissioner shall adopt rules, no later than January 1, 1980, in accordance
with sections 15.041 to 15.052, setting forth the criteria to be considered by the
commissioner in evaluating requests for variances under sections 162.02, subdivision 3a
and 162.09, subdivision 3a. The rules shall must include, but are not limited to, economic,
engineering and safety guidelines.
(b) The commissioner shall adopt rules establishing the engineering standards
adopted pursuant to section for cost estimation under sections 162.07, subdivision 2,
or and 162.13, subdivision 2, shall be adopted pursuant to the requirements of chapter
15 by July 1, 1980.
(c) The rules adopted by the commissioner under this section, and sections
162.02; 162.07, subdivision 2; 162.09; and 162.13, subdivision 2, are exempt from the
rulemaking provisions of chapter 14. The rules are subject to section 14.386, except that,
notwithstanding paragraph (b) of that section, the rules continue in effect until repealed or
superseded by other law or rule.

    Sec. 16. Minnesota Statutes 2010, section 168.013, subdivision 3, is amended to read:
    Subd. 3. Application; cancellation; excessive gross weight forbidden. (a) The
applicant for all licenses based on gross weight shall state the unloaded weight of the
motor vehicle, trailer, or semitrailer and the maximum load the applicant proposes to carry
on it, the sum of which constitutes the gross weight upon which the license tax must be
paid. However, the declared gross weight upon which the tax is paid must not be less than
1-1/4 times the declared unloaded weight of the motor vehicle, trailer, or semitrailer
to be registered, except recreational vehicles taxed under subdivision 1g, school buses
taxed under subdivision 18, and tow trucks or towing vehicles defined in section 169.011,
subdivision 83 . The gross weight of a tow truck or towing vehicle is the actual weight
of the tow truck or towing vehicle fully equipped, but does not include the weight of a
wrecked or disabled vehicle towed or drawn by the tow truck or towing vehicle.
(b) The gross weight of a motor vehicle, trailer, or semitrailer must not exceed
the gross weight upon which the license tax has been paid by more than four percent or
1,000 pounds, whichever is greater; provided that, a vehicle transporting unfinished forest
products on a highway, other than a highway that is part of the system of interstate and
defense highways, unless a federal exemption is granted, in accordance with paragraph
(d)(3):
(1) shall not exceed its gross vehicle weight upon which the license tax has been
paid, or gross axle weight on any axle, by more than five percent and, notwithstanding
other law to the contrary, is not subject to any fee, fine, or other assessment or penalty for
exceeding a gross vehicle or axle weight by up to five percent; and
(2) between the dates set by the commissioner in accordance with section 169.826,
subdivision 1 , is not subject to any provision of paragraph (d) or chapter 169 limiting
the gross axle weight of any individual axle unless the entire vehicle also exceeds its
gross vehicle weight plus its weight allowance allowed in clause (1) and plus any weight
allowance permitted under section 169.826, in which case the vehicle is subject to all
applicable penalties for excess weight violations.
(c) The gross weight of the motor vehicle, trailer, or semitrailer for which the
license tax is paid must be indicated by a distinctive character on the license plate or
plates except as provided in subdivision 12 and the plate or plates must be kept clean
and clearly visible at all times.
(d) The owner, driver, or user of a motor vehicle, trailer, or semitrailer, upon
conviction for transporting a gross weight in excess of the gross weight for which it was
registered or for operating a vehicle with an axle weight exceeding the maximum lawful
axle load weight, is guilty of a misdemeanor and subject to increased registration or
reregistration according to the following schedule:
(1) Upon conviction for transporting a gross weight in excess of the gross weight
for which a motor vehicle, trailer, or semitrailer is registered by more than the allowance
set forth in paragraph (b) but less than 25 percent, or for operating or using a motor
vehicle, trailer, or semitrailer with an axle weight exceeding the maximum lawful axle
load as provided in sections 169.822 to 169.829 by more than the allowance set forth in
paragraph (b) but less than 25 percent, the owner, driver, or user of the motor vehicle,
trailer, or semitrailer used to commit the violation, in addition to any penalty imposed for
the misdemeanor, shall apply to the registrar to increase the authorized gross weight to
be carried on the vehicle to a weight equal to or greater than the gross weight the owner,
driver, or user was convicted of carrying. The increase is computed for the balance of
the calendar year on the basis of 1/12 of the annual tax for each month remaining in the
calendar year beginning with the first day of the month in which the violation occurred.
If the additional registration tax computed upon that weight, plus the tax already paid,
amounts to more than the regular tax for the maximum gross weight permitted for the
vehicle under sections 169.822 to 169.829, that additional amount must nevertheless be
paid into the highway fund, but the additional tax thus paid does not authorize or permit
any person to operate the vehicle with a gross weight in excess of the maximum legal
weight as provided by sections 169.822 to 169.829. Unless the owner within 30 days
after a conviction applies to increase the authorized weight and pays the additional tax
as provided in this section, the registrar shall revoke the registration on the vehicle and
demand the return of the registration card and plates issued on that registration.
(2) Upon conviction of an owner, driver, or user of a motor vehicle, trailer, or
semitrailer for transporting a gross weight in excess of the gross weight for which the
motor vehicle, trailer, or semitrailer was registered by 25 percent or more or for operating
or using the vehicle or trailer with an axle weight exceeding the maximum lawful axle load
as provided in sections 169.822 to 169.829 by 25 percent or more, and in addition to any
penalty imposed for the misdemeanor, the registrar shall either (i) cancel the reciprocity
privileges on the vehicle involved if the vehicle is being operated under reciprocity
or (ii) if the vehicle is not being operated under reciprocity, cancel the certificate of
registration on the vehicle operated and demand the return of the registration certificate
and registration plates. The registrar may not cancel the registration or reciprocity
privileges for any vehicle found in violation of seasonal load restrictions imposed under
section 169.87 unless the axle weight exceeds the year-round weight limit for the highway
on which the violation occurred. The registrar may investigate any allegation of gross
weight violations and demand that the operator show cause why all future operating
privileges in the state should not be revoked unless the additional tax assessed is paid.
(3) Clause (1) does not apply to the first haul of unprocessed or raw farm products
or unfinished forest products, when the registered gross weight is not exceeded by more
than ten percent. For purposes of this clause, "first haul" means (i) the first, continuous
transportation of unprocessed or raw farm products from the place of production or
on-farm storage site to any other location within 50 100 miles of the place of production or
on-farm storage site, or (ii) the continuous or noncontinuous transportation of unfinished
forest products from the place of production to the place of final processing or manufacture
located within 200 miles of the place of production.
(4) When the registration on a motor vehicle, trailer, or semitrailer is revoked by the
registrar according to this section, the vehicle must not be operated on the highways of the
state until it is registered or reregistered, as the case may be, and new plates issued, and
the registration fee is the annual tax for the total gross weight of the vehicle at the time of
violation. The reregistration pursuant to this subdivision of any vehicle operating under
reciprocity agreements pursuant to section 168.181 or 168.187 must be at the full annual
registration fee without regard to the percentage of vehicle miles traveled in this state.

    Sec. 17. Minnesota Statutes 2010, section 168.10, subdivision 1a, is amended to read:
    Subd. 1a. Collector's vehicle, pioneer plate. (a) Any motor vehicle that: (1) was
manufactured prior to 1936 or is a restored pioneer vehicle, as defined in section 168A.01,
subdivision 16a; and (2) is owned and operated solely as a collector's item shall be listed
for taxation and registration as follows: as provided by paragraph (b).
(b) An affidavit shall be executed stating the name and address of the owner, the
name and address of the person from whom purchased, the make of the motor vehicle,
year and number of the model, the manufacturer's identification number and that the
vehicle is owned and operated solely as a collector's item and not for general transportation
purposes. If the commissioner is satisfied that the affidavit is true and correct and the
owner pays a $25 tax and the plate fee authorized under section 168.12, the commissioner
shall list such vehicle for taxation and registration and shall issue a single number plate.
    (b) (c) The number plate so issued shall bear the inscription "Pioneer," "Minnesota"
and the registration number or other combination of characters authorized under section
168.12, subdivision 2a , but no date. The number plate is valid without renewal as long as
the vehicle is in existence in Minnesota. The commissioner has the power to revoke said
plate for failure to comply with this subdivision.

    Sec. 18. Minnesota Statutes 2010, section 168.27, subdivision 2, is amended to read:
    Subd. 2. New motor vehicle dealer. (a) A new motor vehicle dealer licensee may
sell, broker, wholesale, or auction and solicit and advertise the sale, brokerage, wholesale,
or auction of new motor vehicles covered by the franchise and any used motor vehicles,
and may lease and solicit and advertise the lease of new motor vehicles and any used
motor vehicles. New motor vehicle dealer sales or leases may be either for consumer
use at retail or for resale to a dealer. A new motor vehicle dealer may engage in the
business of buying or otherwise acquiring vehicles for dismantling the vehicles and
selling used parts and remaining scrap materials under chapter 168A, except that a new
motor vehicle dealer may not purchase a junked vehicle from a salvage pool, insurance
company, or its agent unless the dealer is also licensed as a used vehicle parts dealer or
licensed as a scrap metal processor. Nothing in this subdivision requires an applicant for
a dealer license who proposes to deal in: (1) new and unused motor vehicle bodies; or
(2) type A, B, or C motor homes as defined in section 168.002, subdivision 27, to have
a bona fide contract or franchise in effect with either the first-stage manufacturer of the
motor home or the manufacturer or distributor of any motor vehicle chassis upon which
the new and unused motor vehicle body is mounted. The modification or conversion
of a new van-type vehicle into a multipurpose passenger vehicle which is not a motor
home does not constitute dealing in new or unused motor vehicle bodies, and a person
engaged in the business of selling these van-type vehicles must have a bona fide contract
or franchise with the appropriate manufacturer under subdivision 10. A van converter
or modifier who owns these modified or converted van-type vehicles may sell them at
wholesale to new motor vehicle dealers having a bona fide contract or franchise with the
first-stage manufacturer of the vehicles.
(b) The requirements pertaining to franchises do not apply to persons who remodel
or convert motor vehicles for medical purposes. For purposes of this subdivision, "medical
purpose" means certification by a licensed physician that remodeling or conversion of a
motor vehicle is necessary to enable a disabled person to use the vehicle.
(c) A new motor vehicle dealer shall not deliver a manufacturer's or importer's
certificate of origin for a passenger automobile, pickup truck, or van requiring a certificate
of title according to chapter 168A to any person in conjunction with the sale of a vehicle
except to the department, another new motor vehicle dealer licensed to sell the same
line or make, or a person whose primary business is picking up and delivering motor
vehicle title documents.
(d) If a new motor vehicle dealer agrees to sell or lease a new motor vehicle using
the services of a motor vehicle broker, the new motor vehicle dealer may not refuse to
deliver possession of the vehicle to the buyer or lessee. This paragraph does not require
delivery unless all arrangements have been properly completed for payment, insurance
required by law, titling, transfer, and registration of the new vehicle and any trade-in
vehicle. Delivery may take place at or away from the dealership.

    Sec. 19. Minnesota Statutes 2010, section 168.27, subdivision 3, is amended to read:
    Subd. 3. Used motor vehicle dealer. A used motor vehicle dealer licensee may sell,
lease, broker, wholesale, or auction and solicit and advertise the sale, lease, brokerage,
wholesale, or auction of any used motor vehicles for consumer use at retail or for resale to
a dealer. A used motor vehicle dealer may engage in the business of buying or otherwise
acquiring vehicles for dismantling the vehicles and selling used parts and remaining scrap
materials under chapter 168A, except that a used motor vehicle dealer may not acquire a
junked vehicle from a salvage pool, insurance company, or its agent, unless the dealer is
also licensed as a used vehicle parts dealer or licensed as a scrap metal processor.

    Sec. 20. Minnesota Statutes 2010, section 168.27, subdivision 3c, is amended to read:
    Subd. 3c. Vehicle salvage pool. A vehicle salvage pool licensee may store and
display and may solicit and advertise the storing and displaying, for sale, of damaged or
junked vehicles as an agent or escrow agent of an insurance company. A vehicle salvage
pool licensee shall not sell junked vehicles to any party other than a licensed used parts
dealer or a licensed scrap metal processor.

    Sec. 21. Minnesota Statutes 2010, section 168A.01, subdivision 6a, is amended to read:
    Subd. 6a. High-value vehicle. "High-value vehicle" means a vehicle manufactured
six or more years before the start of the current model year that had an actual cash value in
excess of $5,000 before being damaged, or a vehicle with a manufacturer's rating of over
26,000 pounds gross vehicle weight that is not a late-model vehicle.

    Sec. 22. Minnesota Statutes 2010, section 168A.01, subdivision 8a, is amended to read:
    Subd. 8a. Late-model vehicle. "Late-model vehicle" means a vehicle manufactured
in the current model year or the five model years with a manufacturer's designated model
year equal to or greater than the fifth calendar year immediately preceding the current
model calendar year.

    Sec. 23. Minnesota Statutes 2010, section 168A.01, subdivision 12a, is amended to
read:
    Subd. 12a. Older model vehicle. "Older model vehicle" means a vehicle
manufactured in the sixth model year immediately preceding the current model year or
earlier that is not a high-value vehicle that is not a late-model vehicle.

    Sec. 24. Minnesota Statutes 2010, section 168A.01, subdivision 16, is amended to read:
    Subd. 16. Reconstructed vehicle. (a) "Reconstructed vehicle" means a vehicle of a
type for which a certificate of title is required hereunder materially altered from its original
construction by the removal, addition, or substitution of essential parts, new or used.
(b) Reconstructed vehicle does not include a restored pioneer vehicle.

    Sec. 25. Minnesota Statutes 2010, section 168A.01, is amended by adding a
subdivision to read:
    Subd. 16a. Restored pioneer vehicle. (a) "Restored pioneer vehicle" means
a vehicle:
(1) for which a certificate of title is required under this chapter;
(2) originally manufactured prior to 1919;
(3) for which one or more essential parts, whether new or used, are replaced; and
(4) for which each essential part under clause (3) is replaced:
(i) only as necessary in order to restore or retain the character and appearance of the
vehicle as originally manufactured;
(ii) in a manner which reasonably restores or retains the character and appearance of
the vehicle as originally manufactured; and
(iii) in a manner which substantially conforms to the fit, form, and function of the
original essential part.
(b) A vehicle meeting both the requirements under paragraph (a) and subdivision 16
for a reconstructed vehicle is a restored pioneer vehicle.
(c) For purposes of this subdivision, replacement of an essential part includes, but is
not limited to, removal, addition, modification, or substitution of the essential part.

    Sec. 26. Minnesota Statutes 2010, section 168A.04, subdivision 5, is amended to read:
    Subd. 5. Specially constructed or reconstructed vehicle Certain unconventional
vehicles; additional information; identifying number. (a) Except as provided in
subdivision 6, if the application refers to a specially constructed vehicle or, a reconstructed
vehicle, or a restored pioneer vehicle, the application shall so state and shall contain or
be accompanied by:
(1) any information and documents the department reasonably requires to establish
the ownership of the vehicle and the existence or nonexistence and priority of security
interests in it;
(2) the certificate of a person authorized by the department that the identifying
number of the vehicle has been inspected and found to conform to the description given in
the application, or any other proof of the identity of the vehicle the department reasonably
requires; and
(3) at the time of application, a written certification to the department that the vehicle
to be titled meets the requirements of chapter 169 for vehicles in its class regarding safety
and acceptability to operate on public roads and highways.
(b) As part of the application for certificate of title on a restored pioneer vehicle, the
applicant shall supply evidence of the manufacturer's year, make, model, and identifying
number of the vehicle. A manufacturer's identifying number is valid under this paragraph
if it matches a number permanently affixed, stamped, or otherwise assigned to at least one
essential part of the motor vehicle, including but not limited to the engine block or the
vehicle body. In the case of an insufficient application, the commissioner may require
additional documentation, including, but not limited to, photographic proof, copies of
original vehicle catalogs, or certification letters from antique car collector organizations to
confirm the manufacturer's identifying number on the vehicle.

    Sec. 27. Minnesota Statutes 2010, section 168A.05, subdivision 3, is amended to read:
    Subd. 3. Content of certificate. (a) Each certificate of title issued by the department
shall contain:
    (1) the date issued;
    (2) the first, middle, and last names and the dates of birth of all owners who are
natural persons, and the full names of all other owners;
    (3) the residence address of the owner listed first if that owner is a natural person or
the address if that owner is not a natural person;
    (4) the names of any secured parties, and the address of the first secured party,
listed in the order of priority (i) as shown on the application, or (ii) if the application is
based on a certificate of title, as shown on the certificate, or (iii) as otherwise determined
by the department;
    (5) any liens filed pursuant to a court order or by a public agency responsible for
child support enforcement against the owner;
    (6) the title number assigned to the vehicle;
    (7) a description of the vehicle including, so far as the following data exists, its
make, model, year, identifying number, type of body, whether new or used, and if a new
vehicle, the date of the first sale of the vehicle for use;
    (8) with respect to a motor vehicle subject to section 325E.15, (i) the true cumulative
mileage registered on the odometer or (ii) that the actual mileage is unknown if the
odometer reading is known by the owner to be different from the true mileage;
    (9) with respect to a vehicle subject to sections 325F.6641 and 325F.6642, the
appropriate term "flood damaged," "rebuilt," "prior salvage," or "reconstructed";
    (10) with respect to a vehicle contaminated by methamphetamine production, if the
registrar has received the certificate of title and notice described in section 152.0275,
subdivision 2 , paragraph (g), the term "hazardous waste contaminated vehicle";
    (11) with respect to a vehicle subject to section 325F.665, the term "lemon law
vehicle"; and
    (12) any other data the department prescribes.
(b) For a certificate of title on a vehicle that is a restored pioneer vehicle:
(1) the identifying number must be the valid identifying number as provided under
section 168A.04, subdivision 5;
(2) the year of the vehicle must be the year of original vehicle manufacture and
not the year of restoration; and
(3) the title must not bear a "reconstructed vehicle" brand.

    Sec. 28. Minnesota Statutes 2010, section 168A.09, is amended by adding a
subdivision to read:
    Subd. 4. Restored pioneer vehicle; replacement title. (a) The owner of a vehicle
may apply to the commissioner for a replacement title if:
(1) a Minnesota title has been issued prior to the effective date of this section; and
(2) the vehicle meets the requirements for a restored pioneer vehicle under section
168A.01, subdivision 16a.
(b) The commissioner shall establish and make publicly available requirements for
an application under this subdivision, and shall make reasonable efforts to minimize
burden on the title applicant. Among the application requirements, a person applying for a
replacement title shall surrender the original title.
(c) The commissioner shall impose a fee for a replacement title issued under this
subdivision that is equal to the fee for issuing a duplicate certificate of title under section
168A.29. Fee proceeds must be allocated in the same manner as the fee for a duplicate
certificate of title.

    Sec. 29. Minnesota Statutes 2010, section 168A.15, subdivision 2, is amended to read:
    Subd. 2. Certain unconventional vehicles; requirements to obtain certificate for
reconstructed vehicle. If a vehicle is altered so as to become a reconstructed vehicle or
restored pioneer vehicle, the owner shall apply for a certificate of title to the reconstructed
vehicle in the manner provided in section 168A.04, and any existing certificate of title to
the vehicle shall be surrendered for cancellation.

    Sec. 30. Minnesota Statutes 2010, section 168A.151, subdivision 1, is amended to read:
    Subdivision 1. Salvage titles. (a) When an insurer, licensed to conduct business in
Minnesota, acquires ownership of a late-model or high-value vehicle through payment
of damages, the insurer shall immediately apply for a salvage certificate of title or shall
stamp the existing certificate of title with the legend "SALVAGE CERTIFICATE OF
TITLE" in a manner prescribed by the department. Within 48 hours of taking possession
ten days of obtaining the title of a vehicle through payment of damages, an insurer must
notify the department in a manner prescribed by the department.
    (b) A person shall immediately apply for a salvage certificate of title if the person
acquires a damaged late-model or high-value motor vehicle with an out-of-state title
and the vehicle:
    (1) is a vehicle that was acquired by an insurer through payment of damages;
    (2) is a vehicle for which the cost of repairs exceeds the value of the damaged
vehicle; or
    (3) has an out-of-state salvage certificate of title as proof of ownership.
    (c) A self-insured owner of a late-model or high-value vehicle who that sustains
damage by collision or other occurrence which exceeds 70 80 percent of its actual cash
value shall immediately apply for a salvage certificate of title. Damage, for the purpose of
this calculation, does not include the actual cost incurred to repair, replace, or reinstall
inflatable safety restraints and other vehicle components that must be replaced due to the
deployment of the inflatable safety restraints.

    Sec. 31. Minnesota Statutes 2010, section 168A.151, subdivision 6, is amended to read:
    Subd. 6. Authority under junking certificate. A junking certificate authorizes the
holder only to possess and transport the vehicle, except that a salvage pool or insurance
company, or its agent, may sell an unrepairable total loss vehicle with a junking certificate
to a licensed used parts dealer or a licensed scrap metal processor.

    Sec. 32. Minnesota Statutes 2010, section 169.06, subdivision 4, is amended to read:
    Subd. 4. Obedience to traffic-control signal or flagger; presumptions. (a) The
driver of any vehicle shall obey the instructions of any official traffic-control device
applicable thereto placed in accordance with the provisions of this chapter, unless
otherwise directed by a police officer or by a certified overdimensional load escort driver
flagger authorized under this subdivision, subject to the exceptions granted the driver of
an authorized emergency vehicle in this chapter.
(b) No provision of this chapter for which official traffic-control devices are required
shall be enforced against an alleged violator if at the time and place of the alleged
violation an official device is not in proper position and sufficiently legible to be seen by
an ordinarily observant person. Whenever a particular section does not state that official
traffic-control devices are required, such section shall be effective even though no devices
are erected or in place.
(c) Whenever official traffic-control devices are placed in position approximately
conforming to the requirements of this chapter, such devices shall be presumed to have
been so placed by the official act or direction of lawful authority, unless the contrary
shall be established by competent evidence.
(d) Any official traffic-control device placed pursuant to the provisions of this
chapter and purporting to conform to the lawful requirements pertaining to such devices
shall be presumed to comply with the requirements of this chapter, unless the contrary
shall be established by competent evidence.
(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place
until it is safe for the vehicles to proceed. A person operating a motor vehicle that has
been stopped by a flagger in a designated work zone may proceed after stopping only on
instruction by the flagger.
(f) An overdimensional load escort driver with a certificate issued under section
299D.085 , while acting as a flagger escorting a legal overdimensional load, may stop
vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person
operating a motor vehicle that has been stopped by an escort driver acting as a flagger may
proceed only on instruction by the flagger or a police officer.
(g) A person may stop and hold vehicles in place until it is safe for the vehicles to
proceed, if the person: (1) holds a motorcycle road guard certificate issued under section
171.60; (2) meets the safety and equipment standards for operating under the certificate;
(3) is acting as a flagger escorting a motorcycle group ride; (4) has notified each statutory
or home rule charter city through which the motorcycle group is proceeding; and (5)
has obtained consent from the chief of police, or the chief's designee, of any city of the
first class through which the group is proceeding. A flagger operating as provided under
this paragraph may direct operators of motorcycles within a motorcycle group ride or
other vehicle traffic, notwithstanding any contrary indication of a traffic-control device,
including stop signs or traffic-control signals. A person operating a vehicle that has been
stopped by a flagger under this paragraph may proceed only on instruction by the flagger
or a police officer.
EFFECTIVE DATE.This section is effective one year after publication in the State
Register of rules adopted under section 171.60, subdivision 5.

    Sec. 33. Minnesota Statutes 2010, section 169.09, subdivision 13, is amended to read:
    Subd. 13. Reports confidential; evidence, fee, penalty, appropriation. (a) All
reports and supplemental information required under this section must be for the use of the
commissioner of public safety and other appropriate state, federal, county, and municipal
governmental agencies for accident analysis purposes, except:
(1) the commissioner of public safety or any law enforcement agency shall, upon
written request of any individual involved in an accident or upon written request of the
representative of the individual's estate, surviving spouse, or one or more surviving next
of kin, or a trustee appointed under section 573.02, or other person injured in person,
property, or means of support, or who incurs other pecuniary loss by virtue of the accident,
disclose to the requester, the requester's legal counsel, or a representative of the requester's
insurer the report required under subdivision 8;
(2) the commissioner of public safety shall, upon written request, provide the driver
filing a report under subdivision 7 with a copy of the report filed by the driver;
(3) the commissioner of public safety may verify with insurance companies vehicle
insurance information to enforce sections 65B.48, 169.792, 169.793, 169.796, and
169.797 ;
(4) the commissioner of public safety shall provide the commissioner of
transportation the information obtained for each traffic accident involving a commercial
motor vehicle, for purposes of administering commercial vehicle safety regulations; and
(5) upon request, the commissioner of public safety shall provide the commissioner
of transportation the information obtained for each traffic accident involving damage
to state-owned infrastructure, for purposes of debt collection under section 161.20,
subdivision 4; and
(5) (6) the commissioner of public safety may give to the United States Department
of Transportation commercial vehicle accident information in connection with federal
grant programs relating to safety.
(b) Accident reports and data contained in the reports are not discoverable under any
provision of law or rule of court. No report shall be used as evidence in any trial, civil or
criminal, or any action for damages or criminal proceedings arising out of an accident.
However, the commissioner of public safety shall furnish, upon the demand of any person
who has or claims to have made a report or upon demand of any court, a certificate
showing that a specified accident report has or has not been made to the commissioner
solely to prove compliance or failure to comply with the requirements that the report be
made to the commissioner.
(c) Nothing in this subdivision prevents any individual who has made a report under
this section from providing information to any individuals involved in an accident or their
representatives or from testifying in any trial, civil or criminal, arising out of an accident,
as to facts within the individual's knowledge. It is intended by this subdivision to render
privileged the reports required, but it is not intended to prohibit proof of the facts to
which the reports relate.
(d) Disclosing any information contained in any accident report, except as provided
in this subdivision, section 13.82, subdivision 3 or 6, or other statutes, is a misdemeanor.
(e) The commissioner of public safety shall charge authorized persons as described
in paragraph (a) a $5 fee for a copy of an accident report. Ninety percent of the $5 fee
collected under this paragraph must be deposited in the special revenue fund and credited
to the driver services operating account established in section 299A.705 and ten percent
must be deposited in the general fund. The commissioner may also furnish an electronic
copy of the database of accident records, which must not contain personal or private data
on an individual, to private agencies as provided in paragraph (g), for not less than the cost
of preparing the copies on a bulk basis as provided in section 13.03, subdivision 3.
(f) The fees specified in paragraph (e) notwithstanding, the commissioner and law
enforcement agencies shall charge commercial users who request access to response or
incident data relating to accidents a fee not to exceed 50 cents per record. "Commercial
user" is a user who in one location requests access to data in more than five accident
reports per month, unless the user establishes that access is not for a commercial purpose.
Of the money collected by the commissioner under this paragraph, 90 percent must be
deposited in the special revenue fund and credited to the driver services operating account
established in section 299A.705 and ten percent must be deposited in the general fund.
(g) The fees in paragraphs (e) and (f) notwithstanding, the commissioner shall
provide an electronic copy of the accident records database to the public on a case-by-case
basis using the cost-recovery charges provided for under section 13.03, subdivision
3 . The database provided must not contain personal or private data on an individual.
However, unless the accident records database includes the vehicle identification number,
the commissioner shall include the vehicle registration plate number if a private agency
certifies and agrees that the agency:
(1) is in the business of collecting accident and damage information on vehicles;
(2) will use the vehicle registration plate number only for identifying vehicles that
have been involved in accidents or damaged, to provide this information to persons
seeking access to a vehicle's history and not for identifying individuals or for any other
purpose; and
(3) will be subject to the penalties and remedies under sections 13.08 and 13.09.

    Sec. 34. Minnesota Statutes 2010, section 169.222, subdivision 6, is amended to read:
    Subd. 6. Bicycle equipment. (a) No person shall operate a bicycle at nighttime
unless the bicycle or its operator is equipped with a lamp which shall emit a white light
visible from a distance of at least 500 feet to the front and with a red reflector of a type
approved by the Department of Public Safety which is visible from all distances from 100
feet to 600 feet to the rear when directly in front of lawful lower beams of headlamps on a
motor vehicle. No person may operate a bicycle at any time when there is not sufficient
light to render persons and vehicles on the highway clearly discernible at a distance of 500
feet ahead unless the bicycle or its operator is equipped with reflective surfaces that shall
be visible during the hours of darkness from 600 feet when viewed in front of lawful lower
beams of headlamps on a motor vehicle. The reflective surfaces shall include reflective
materials on each side of each pedal to indicate their presence from the front or the rear
and with a minimum of 20 square inches of reflective material on each side of the bicycle
or its operator. Any bicycle equipped with side reflectors as required by regulations for
new bicycles prescribed by the United States Consumer Product Safety Commission
shall be considered to meet the requirements for side reflectorization contained in this
subdivision. A bicycle may be equipped with a front lamp that emits a white flashing
signal or a rear lamp that emits a red flashing signal.
(b) Bicycle tires may be equipped with studs or other protuberances designed
to increase traction.
(c) No person shall operate a bicycle unless it is equipped with a brake which will
enable the operator to make the braked wheels skid on dry, level, clean pavement.
(c) (d) No person shall operate upon a highway any bicycle equipped with handlebars
so raised that the operator must elevate the hands above the level of the shoulders in
order to grasp the normal steering grip area.
(d) (e) No person shall operate upon a highway any bicycle which is of such a size
as to prevent the operator from stopping the bicycle, supporting it with at least one foot
on the highway surface and restarting in a safe manner.

    Sec. 35. Minnesota Statutes 2010, section 169.4501, subdivision 1, is amended to read:
    Subdivision 1. National standards adopted. Except as provided in sections
169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C,
D school buses and multifunction school activity buses used for the transportation of
school children shall meet the requirements of the "bus chassis standards" and "bus body
standards and chassis specifications" in the 2005 2010 edition of the "National School
Transportation Specifications and Procedures" adopted by the National Congress on
School Transportation. Except as provided in section 169.4504, the construction, design,
and equipment of types A, B, C, D school buses and multifunction school activity buses
used for the transportation of students with disabilities also shall meet the requirements of
the "specially equipped school bus standards specifications" in the 2005 2010 National
School Transportation Specifications and Procedures. The "bus chassis standards," "bus
body standards, and chassis specifications" and "specially equipped school bus standards
specifications" sections of the 2005 2010 edition of the "National School Transportation
Specifications and Procedures," adopted by the Fifteenth National Congress on School
Transportation, are incorporated by reference in this chapter.

    Sec. 36. Minnesota Statutes 2010, section 169.4501, subdivision 2, is amended to read:
    Subd. 2. Applicability. (a) The standards adopted in this section and sections
169.4502 and 169.4503, govern the construction, design, equipment, and color of school
buses used for the transportation of school children, when owned or leased and operated
by a school or privately owned or leased and operated under a contract with a school.
Each school, its officers and employees, and each person employed under the contract is
subject to these standards.
    (b) The standards apply to school buses manufactured after December 31, 2007
2012. Buses complying with the standards when manufactured need not comply with
standards established later except as specifically provided for by law.
    (c) A school bus manufactured on or before December 31, 2007 2012, must conform
to the Minnesota standards in effect on the date the vehicle was manufactured except as
specifically provided for in law.
    (d) A new bus body may be remounted on a used chassis provided that the remounted
vehicle meets state and federal standards for new buses which are current at the time of the
remounting. Permission must be obtained from the commissioner of public safety before
the remounting is done. A used bus body may not be remounted on a new or used chassis.

    Sec. 37. Minnesota Statutes 2010, section 169.4503, subdivision 5, is amended to read:
    Subd. 5. Colors. Fenderettes may be black. The beltline may be painted yellow
over black or black over yellow. The rub rails shall be black. The area around the lenses
of alternately flashing signal lamps extending outward from the edge of the lamp three
inches, plus or minus one-quarter inch, to the sides and top and at least one inch to the
bottom, shall be black. Visors or hoods, black in color, with a minimum of four inches
may be provided.

    Sec. 38. Minnesota Statutes 2010, section 169.4503, subdivision 20, is amended to
read:
    Subd. 20. Seat and crash barriers. (a) All restraining barriers and passenger seats
shall be covered with a material that has fire retardant or fire block characteristics.
    (b) All seats must have a minimum cushion depth of 15 inches and a seat back
height of at least 20 inches above the seating reference point, and beginning October 21,
2009, must also conform to the Federal Motor Vehicle Safety Standard in Code of Federal
Regulations, title 49, section 571.222.

    Sec. 39. Minnesota Statutes 2010, section 169.4503, is amended by adding a
subdivision to read:
    Subd. 28. Auxiliary fans. Additional auxiliary fans are required for school buses
manufactured on or after December 31, 2012, and shall meet the following requirements:
(1) fans for the left and right sides of the windshields shall be placed in a location
where they can be adjusted for maximum effectiveness and where they do not obstruct
vision to any mirror. Type A buses may be equipped with one fan;
(2) fans shall be a minimum of six inches in diameter;
(3) fan blades shall be covered with a protective cage; and
(4) each fan shall be controlled by a separate switch.

    Sec. 40. Minnesota Statutes 2010, section 169.4503, is amended by adding a
subdivision to read:
    Subd. 29. Video/mobile surveillance systems. Camera heads for video/mobile
surveillance may be mounted in the driver compartment area, mid-bus, or on a rear interior
bulkhead in the student passenger area. For buses manufactured or retrofitted with a
surveillance system after December 31, 2012, cameras mounted mid-bus must be parallel
to a seat back, must not have any sharp edges, must not extend outward more than three
inches, and must be located within 24 inches of the top of the side window of the bus.

    Sec. 41. Minnesota Statutes 2010, section 169.4582, subdivision 2, is amended to read:
    Subd. 2. Duty to report; school official. Consistent with the school bus safety
policy under section 123B.91, subdivision 1, the school principal, the school transportation
safety director, or other designated school official shall immediately report to the local
law enforcement agency having jurisdiction where the misbehavior occurred and to the
school superintendent if the reporting school official knows or has reason to believe that
a student has committed a reportable offense on a school bus or in a bus loading or
unloading area. The reporting school official shall issue a report to the commissioner of
public safety concerning the incident on a form developed by the commissioner for that
purpose upon request of the commissioner.

    Sec. 42. 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 two plates must be displayed
on. One plate must be displayed at the front and one on the rear of the vehicle and one
at the back. The two plates must either be mounted on the front and rear bumpers of
the vehicle or on the front and back of the vehicle exterior in places designed to hold a
license plate.

    Sec. 43. 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. Unless otherwise specified, all such fees for permits issued by the
commissioner of transportation shall 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:
    (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 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 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

If the gross weight of the vehicle is more than 145,000 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) (1) 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; and
    (ii) (2) all remaining money in each fiscal year must be deposited in a the bridge
inspection and signing account in the special revenue fund as provided under subdivision
5a. 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. 44. Minnesota Statutes 2010, section 169.86, is amended by adding a subdivision
to read:
    Subd. 5a. Bridge inspection and signing account; appropriation. (a) A bridge
inspection and signing account is established in the special revenue fund. The account
consists of fees for special permits as specified under this chapter, and any other money
donated, allotted, transferred, or otherwise provided to the account.
    (b) The revenue in the bridge inspection and signing account under this subdivision
is annually appropriated to the commissioner for:
    (1) 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
    (2) erection of weight-posting signs on local bridges.

    Sec. 45. Minnesota Statutes 2010, section 169.865, subdivision 1, is amended to read:
    Subdivision 1. Six-axle vehicles. (a) A road authority may issue an annual permit
authorizing a vehicle or combination of vehicles with a total of six or more axles to haul
raw or unprocessed agricultural products, and farm supplies, and be operated with a gross
vehicle weight of up to:
    (1) 90,000 pounds; and
    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
subdivision 1 .
    (b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or
combination of vehicles operated under this subdivision and transporting only sealed
intermodal containers may be operated on an interstate highway if allowed by the United
States Department of Transportation.
    (c) The fee for a permit issued under this subdivision is $300.

    Sec. 46. Minnesota Statutes 2010, section 169.865, subdivision 2, is amended to read:
    Subd. 2. Seven-axle vehicles. (a) A road authority may issue an annual permit
authorizing a vehicle or combination of vehicles with a total of seven or more axles to
haul raw or unprocessed agricultural products, and farm supplies, and be operated with
a gross vehicle weight of up to:
    (1) 97,000 pounds; and
    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
subdivision 1 .
    (b) Drivers of vehicles operating under this subdivision must comply with driver
qualification requirements adopted under section 221.0314, subdivisions 2 to 5, and Code
of Federal Regulations, title 49, parts 40 and 382.
    (c) The fee for a permit issued under this subdivision is $500.

    Sec. 47. Minnesota Statutes 2010, section 169.865, subdivision 4, is amended to read:
    Subd. 4. Deposit of revenues; appropriation. (a) Revenue from the permits issued
by the commissioner under this section must be deposited:
(1) in fiscal years 2008 through 2011, in the bridge inspection and signing account
in the special revenue fund; and
    (2) in fiscal year 2012 and subsequent years, in the trunk highway fund as provided
under section 169.86, subdivision 5a.
    (b) The revenue in the bridge inspection and signing account under this section is
annually appropriated to the commissioner for:
    (1) 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
    (2) erection of weight-posting signs on local bridges.

    Sec. 48. Minnesota Statutes 2010, section 169.872, subdivision 1a, is amended to read:
    Subd. 1a. Limit on civil penalties. A civil penalty for excessive weight under
section 169.871 may be imposed based on a record of a shipment under this section only if
a state law enforcement officer or motor transportation representative: (1) has inspected
and copied the record within 14 days of the date the shipment was received by the person
keeping the record; and (2) has assessed the penalty within 90 days of the date the officer
or representative inspected and copied the record.

    Sec. 49. Minnesota Statutes 2010, section 169.98, subdivision 1, is amended to read:
    Subdivision 1. Colors and markings. (a) Except as provided in subdivisions 2 and
2a, all motor vehicles which are primarily used in the enforcement of highway traffic rules
by the State Patrol or for general uniform patrol assignment by any municipal police
department or other law enforcement agency, except conservation officers, shall have
uniform colors and markings as provided in this subdivision. Motor vehicles of:
(1) municipal police departments, including the University of Minnesota Police
Department and park police units, shall be predominantly blue, brown, green, black,
or white;
(2) the State Patrol shall be predominantly maroon; and
(3) the county sheriff's office shall be predominantly brown, black, gold, or white.
(b) The identity of the governmental unit operating the vehicle shall be displayed on
both front door panels and on the rear of the vehicle. The identity may be in the form of
a shield or emblem, or may be the word "police," "sheriff," or the words "State Patrol"
or "conservation officer," as appropriate, with letters not less than 2-1/2 inches high,
one-inch wide and of a three-eighths inch brush stroke. The identity shall be of a color
contrasting with the background color so that the motor vehicle is easily identifiable as
belonging to a specific type of law enforcement agency. Each vehicle shall be marked
with its own identifying number on the rear of the vehicle. The number shall be printed
in the same size and color required pursuant to this subdivision for identifying words
which may be displayed on the vehicle.

    Sec. 50. Minnesota Statutes 2010, section 169.98, subdivision 3, is amended to read:
    Subd. 3. Security guard vehicle. (a) All motor vehicles which are used by security
guards in the course of their employment may have any color other than those specified in
subdivision 1 for law enforcement vehicles. The identity of the security service shall be
displayed on the motor vehicle as required for law enforcement vehicles.
(b) Notwithstanding subdivision 1, paragraph (a), clause (1), a security guard may
continue to use a motor vehicle that is predominantly black in the course of the guard's
employment if the vehicle was being used in this manner before August 1, 2002.
(c) Notwithstanding subdivision 1, paragraph (a), clause (3), a security guard may
continue to use a motor vehicle that is predominantly gold in the course of the guard's
employment if the vehicle was being used in this manner before August 1, 2012.

    Sec. 51. [171.60] MOTORCYCLE ROAD GUARD CERTIFICATE.
    Subdivision 1. Certificate required. No person may perform traffic control as a
motorcycle road guard as provided under chapter 169 without a valid motorcycle road
guard certificate issued by the commissioner.
    Subd. 2. Certification qualifications and standards; fee. Through the Minnesota
Motorcycle Safety Center, the commissioner of public safety shall:
(1) establish qualifications and requirements for a person to obtain a motorcycle road
guard certificate under this section, which must include:
(i) a minimum 18 years of age;
(ii) possession of a valid driver's license; and
(iii) successful completion of a motorcycle road guard certification course;
(2) develop and offer, whether by the Minnesota Motorcycle Safety Center or
authorized agents, a motorcycle road guard certification course; and
(3) establish safety and equipment standards for a person who operates under a
motorcycle road guard certificate, including but not limited to specifying requirements
for a reflective safety vest.
    Subd. 3. Fee. The commissioner of public safety shall assess a fee for each applicant
for a motorcycle road guard certificate, calculated to cover the commissioner's cost of
establishing and administering the program.
    Subd. 4. Penalty. A person who violates any provision of this section is guilty
of a petty misdemeanor.
    Subd. 5. Rulemaking. The commissioner of public safety shall adopt rules to carry
out the provisions of this section. Notwithstanding section 16A.1283, the rules must
specify the fee to be assessed under subdivision 3.
EFFECTIVE DATE.Subdivisions 1 to 4 are effective one year after publication
in the State Register of rules adopted under subdivision 5. Subdivision 5 is effective the
day following final enactment.

    Sec. 52. Minnesota Statutes 2010, section 174.03, is amended by adding a subdivision
to read:
    Subd. 1d. Statewide freight plan. (a) The commissioner of transportation, in
cooperation with the commissioner of the Department of Employment and Economic
Development, shall conduct a freight rail economic development study. The study will
assess the economic impact of freight railroads in the state and identify opportunities to
expand business development and enhance economic competitiveness through improved
utilization of freight rail options. Findings from the study shall be incorporated as an
amendment to the statewide freight and passenger rail plan.
(b) The commissioner of transportation shall provide an interim progress report on
the study by January 15, 2013, and a final report on September 1, 2013, to the chairs
and ranking minority members of the legislative committees with jurisdiction over
transportation policy and finance and over employment and economic development. The
reports shall include any recommended legislative initiatives.
(c) The commissioner of transportation may expend up to $216,000 in fiscal year
2013 under section 222.50, subdivision 7, to pay the costs of this study and report.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 53. [174.40] SAFE ROUTES TO SCHOOL PROGRAM.
    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
have the meanings given them.
(b) "Bond eligible cost" means expenditures under this section for acquisition of
land or permanent easements, predesign, design, preliminary and final engineering,
environmental analysis, construction, and reconstruction of publicly owned infrastructure
in this state with a useful life of at least ten years that provides for nonmotorized
transportation to and from a school; preparation of land for which a route to school
is established, including demolition of structures and remediation of any hazardous
conditions on the land; and the unpaid principal on debt issued by a political subdivision
for a safe routes to school project.
(c) "Federal program" means the safe routes to school program under Title I, section
1404 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy
for Users (SAFETEA-LU) of 2005, Public Law 109-59.
(d) "School" means a school, as defined in section 120A.22, subdivision 4, excluding
a home school.
    Subd. 2. Program creation. (a) A safe routes to school program is established
to provide assistance in capital investments for safe and appealing nonmotorized
transportation to and from a school. The commissioner shall develop and implement the
safe routes to school program as provided in this section. Financial assistance under
this section is to supplement or replace aid for infrastructure projects under the federal
program.
(b) The commissioner may provide grants or other financial assistance for a safe
routes to school project at the commissioner's discretion, subject to the requirements
of this section.
    Subd. 3. Safe routes to school accounts. (a) A safe routes to school account is
established in the bond proceeds fund. The account consists of state bond proceeds
appropriated to the commissioner. Money in the account may only be expended on
bond-eligible costs of a project receiving financial assistance as provided under this
section. All uses of funds from the account must be for publicly owned property.
(b) A safe routes to school account is established in the general fund. The account
consists of funds as provided by law, and any other money donated, allotted, transferred,
or otherwise provided to the account. Money in the account may only be expended on a
project receiving financial assistance as provided under this section.
    Subd. 4. State general obligation bond funds. Minnesota Constitution, article XI,
section 5, clause (a), requires that state general obligation bonds be issued to finance only
the acquisition or betterment of public land, buildings, and other public improvements
of a capital nature. The legislature has determined that many school transportation
infrastructure projects will constitute betterments and capital improvements within the
meaning of the Minnesota Constitution and capital expenditures under generally accepted
accounting principles, and will be financed more efficiently and economically under this
section than by direct appropriations for specific projects.
    Subd. 5. Program administration. (a) The commissioner shall establish general
program requirements and a competitive process for financial assistance, including but
not limited to eligibility requirements for grant recipients and projects; procedures for
solicitation of grants; application requirements; procedures for payment of financial
assistance awards; and a schedule for application, evaluation, and award of financial
assistance.
(b) An application must include:
(1) a detailed and specific description of the project;
(2) an estimate, along with necessary supporting evidence, of the total costs for the
project and the allocation of identified and proposed funding sources for the project;
(3) an assessment of the need for and benefits of the project;
(4) a resolution adopted by the governing body of the school for which a safe routes
to school grant is requested, certifying that: (i) the governing body of the school supports
the project; and (ii) funds, if any, required to be supplied by the school to complete the
project are available and committed;
(5) a timeline indicating the major milestones of the project and their anticipated
completion dates; and
(6) any additional information or material the commissioner prescribes.
(c) The commissioner shall make reasonable efforts to (1) publicize each solicitation
for applications among all eligible recipients, and (2) provide technical and informational
assistance in creating and submitting applications.
(d) By January 1, 2013, the commissioner of transportation shall publish and
maintain a manual on the safe routes to school program that assists applicants for and
recipients of financial assistance. The manual must include identification of eligibility
and general program requirements, explanation of the application process, and review of
criteria for evaluation of projects.
    Subd. 6. Evaluation criteria. The commissioner shall establish criteria for
evaluation of applications and selection of projects. The criteria must include:
(1) establishment or capital improvement of transportation infrastructure that
improves safety and encourages nonmotorized transportation to and from a school;
(2) compliance with all applicable requirements for capital infrastructure projects
established by the Federal Highway Administration, U.S. Department of Transportation,
for the federal program; and
(3) other components as determined by the commissioner.
    Subd. 7. Grant cancellation. If, five years after execution of a grant agreement,
the commissioner determines that the grantee has not proceeded in a timely manner
with implementation of the project funded, the commissioner must cancel the grant
and the grantee must repay to the commissioner all grant money paid to the grantee.
Section 16A.642 applies to any appropriations made from the bond proceeds fund to the
commissioner under this section that have not been awarded as financial assistance.
    Subd. 8. Legislative report. By November 1 annually, the commissioner shall
submit a report on the safe routes to school program to the chairs and ranking minority
members of the house of representatives and senate committees with jurisdiction over
transportation policy and finance. The report must at a minimum:
(1) summarize program implementation;
(2) provide an overview of grant evaluation and criteria used in project selection;
(3) provide a brief description of each project funded in the previous fiscal year,
including the amount of money provided from each safe routes to school account under
this section and the amount provided under the federal program;
(4) summarize the status of the federal program or successor legislation; and
(5) identify any recommendations for legislative changes, including proposals to
improve program effectiveness.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 54. Minnesota Statutes 2010, section 221.091, subdivision 2, is amended to read:
    Subd. 2. Small vehicle passenger service. (a) A city that licenses and regulates
small vehicle passenger service must do so by ordinance. The ordinance must, at a
minimum, provide for driver qualifications, insurance, vehicle safety, and periodic vehicle
inspections. A city that has adopted an ordinance complying with this subdivision may
enforce the registration requirement in section 221.021.
(b) A person who provides small vehicle passenger service to an individual for the
purpose of obtaining nonemergency medical care and who receives reimbursement under
section 256B.0625, subdivision 17, for providing the service, must comply with the rules
of the commissioner adopted under section 174.30.

    Sec. 55. Minnesota Statutes 2010, section 296A.07, subdivision 4, is amended to read:
    Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or
denatured ethanol purchased by:
    (1) a transit system or transit provider receiving financial assistance or
reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384;
    (2) providers of transportation to recipients of medical assistance home and
community-based services waivers enrolled in day programs, including adult day care,
family adult day care, day treatment and habilitation, prevocational services, and
structured day services;
(3) an ambulance service licensed under chapter 144E; or
(4) providers of medical or dental services by a federally qualified health center,
as defined under title 19 of the Social Security Act, as amended by Section 4161 of the
Omnibus Budget Reconciliation Act of 1990 with a motor vehicle used exclusively as a
mobile medical unit; or
    (3) (5) a licensed distributor to be delivered to a terminal for use in blending.
EFFECTIVE DATE.Clause (2) is effective retroactively from January 1, 2012,
and clause (4) is effective retroactively from January 1, 2011.

    Sec. 56. Minnesota Statutes 2010, section 296A.08, subdivision 3, is amended to read:
    Subd. 3. Exemptions. The provisions of subdivisions 1 and 2 do not apply to
special fuel or alternative fuels purchased by:
    (1) a transit system or transit provider receiving financial assistance or
reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384;
    (2) providers of transportation to recipients of medical assistance home and
community-based services waivers enrolled in day programs, including adult day care,
family adult day care, day treatment and habilitation, prevocational services, and
structured day services;
(3) an ambulance service licensed under chapter 144E; or
(4) providers of medical or dental services by a federally qualified health center,
as defined under title 19 of the Social Security Act, as amended by Section 4161 of the
Omnibus Budget Reconciliation Act of 1990 with a motor vehicle used exclusively as a
mobile medical unit; or
    (3) (5) a licensed distributor to be delivered to a terminal for use in blending.
EFFECTIVE DATE.Clause (2) is effective retroactively from January 1, 2012,
and clause (4) is effective retroactively from January 1, 2011.

    Sec. 57. Minnesota Statutes 2010, section 297A.68, subdivision 19, is amended to read:
    Subd. 19. Petroleum products. The following petroleum products are exempt:
(1) products upon which a tax has been imposed and paid under chapter 296A,
and for which no refund has been or will be allowed because the buyer used the fuel
for nonhighway use;
(2) products that are used in the improvement of agricultural land by constructing,
maintaining, and repairing drainage ditches, tile drainage systems, grass waterways, water
impoundment, and other erosion control structures;
(3) products purchased by a transit system receiving financial assistance under
section 174.24, 256B.0625, subdivision 17, or 473.384;
(4) products purchased by an ambulance service licensed under chapter 144E;
(5) products used in a passenger snowmobile, as defined in section 296A.01,
subdivision 39 , for off-highway business use as part of the operations of a resort as
provided under section 296A.16, subdivision 2, clause (2); or
(6) products purchased by a state or a political subdivision of a state for use in motor
vehicles exempt from registration under section 168.012, subdivision 1, paragraph (b);
(7) products purchased by providers of transportation to recipients of medical
assistance home and community-based services waivers enrolled in day programs,
including adult day care, family adult day care, day treatment and habilitation,
prevocational services, and structured day services; or
(8) products used in a motor vehicle used exclusively as a mobile medical unit
for the provision of medical or dental services by a federally qualified health center, as
defined under title 19 of the federal Social Security Act, as amended by Section 4161 of
the Omnibus Budget Reconciliation Act of 1990.
EFFECTIVE DATE.Clause (7) is effective retroactively from January 1, 2012,
and clause (8) is effective retroactively from January 1, 2011.

    Sec. 58. Minnesota Statutes 2011 Supplement, section 297B.03, is amended to read:
297B.03 EXEMPTIONS.
    There is specifically exempted from the provisions of this chapter and from
computation of the amount of tax imposed by it the following:
    (1) purchase or use, including use under a lease purchase agreement or installment
sales contract made pursuant to section 465.71, of any motor vehicle by the United States
and its agencies and instrumentalities and by any person described in and subject to the
conditions provided in section 297A.67, subdivision 11;
    (2) purchase or use of any motor vehicle by any person who was a resident of
another state or country at the time of the purchase and who subsequently becomes a
resident of Minnesota, provided the purchase occurred more than 60 days prior to the date
such person began residing in the state of Minnesota and the motor vehicle was registered
in the person's name in the other state or country;
    (3) purchase or use of any motor vehicle by any person making a valid election to be
taxed under the provisions of section 297A.90;
    (4) purchase or use of any motor vehicle previously registered in the state of
Minnesota when such transfer constitutes a transfer within the meaning of section 118,
331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal
Revenue Code;
    (5) purchase or use of any vehicle owned by a resident of another state and leased
to a Minnesota-based private or for-hire carrier for regular use in the transportation of
persons or property in interstate commerce provided the vehicle is titled in the state of
the owner or secured party, and that state does not impose a sales tax or sales tax on
motor vehicles used in interstate commerce;
    (6) purchase or use of a motor vehicle by a private nonprofit or public educational
institution for use as an instructional aid in automotive training programs operated by the
institution. "Automotive training programs" includes motor vehicle body and mechanical
repair courses but does not include driver education programs;
    (7) purchase of a motor vehicle by an ambulance service licensed under section
144E.10 when that vehicle is equipped and specifically intended for emergency response
or for providing ambulance service;
    (8) purchase of a motor vehicle by or for a public library, as defined in section
134.001, subdivision 2 , as a bookmobile or library delivery vehicle;
    (9) purchase of a ready-mixed concrete truck;
    (10) purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles,
vans, or pickup trucks;
    (11) purchase or use of a motor vehicle by a corporation, society, association,
foundation, or institution organized and operated exclusively for charitable, religious,
or educational purposes, except a public school, university, or library, but only if the
vehicle is:
    (i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
passenger automobile, as defined in section 168.002, if the automobile is designed and
used for carrying more than nine persons including the driver; and
    (ii) intended to be used primarily to transport tangible personal property or
individuals, other than employees, to whom the organization provides service in
performing its charitable, religious, or educational purpose;
    (12) purchase of a motor vehicle for use by a transit provider exclusively to provide
transit service is exempt if the transit provider is either (i) receiving financial assistance or
reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29,
473.388 , or 473.405;
    (13) purchase or use of a motor vehicle by a qualified business, as defined in section
469.310 , located in a job opportunity building zone, if the motor vehicle is principally
garaged in the job opportunity building zone and is primarily used as part of or in direct
support of the person's operations carried on in the job opportunity building zone. The
exemption under this clause applies to sales, if the purchase was made and delivery
received during the duration of the job opportunity building zone. The exemption under
this clause also applies to any local sales and use tax; and
    (14) purchase of a leased vehicle by the lessee who was a participant in a
lease-to-own program from a charitable organization that is:
    (i) described in section 501(c)(3) of the Internal Revenue Code; and
    (ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and
(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the
provision of medical or dental services by a federally qualified health center, as defined
under title 19 of the Social Security Act, as amended by section 4161 of the Omnibus
Budget Reconciliation Act of 1990.
EFFECTIVE DATE.This section is effective for sales and purchases made on and
after July 1, 2012.

    Sec. 59. Minnesota Statutes 2010, section 299D.09, is amended to read:
299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
    Fees charged for escort services provided by the State Patrol are annually
appropriated to the commissioner of public safety to administer and provide these services.
    The fees fee charged for services provided by the State Patrol with a vehicle are
$73.60 is $79.28 an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and
thereafter. The fees fee charged for services provided without a vehicle are $54 is $59.28
an hour in fiscal year 2008 and $56.16 an hour in fiscal year 2009 and thereafter.
    The fees charged for State Patrol flight services are $140 an hour for a fixed wing
aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air in fiscal year
2012, and $139.64 an hour for a fixed wing aircraft, $560.83 an hour for a helicopter, and
$454.84 an hour for the Queen Air in fiscal year 2013 and in fiscal year 2014.
EFFECTIVE DATE.This section is effective July 1, 2012.

    Sec. 60. Minnesota Statutes 2010, section 325F.6641, is amended to read:
325F.6641 DISCLOSURE OF MOTOR VEHICLE DAMAGE.
    Subdivision 1. Damage. (a) If a motor late-model vehicle, as defined in section
168A.01, subdivision 8a, has sustained damage by collision or other occurrence which
exceeds 70 80 percent of its actual cash value immediately prior to sustaining damage, the
seller must disclose that fact to the buyer, if the seller has actual knowledge of the damage.
The amount of damage is determined by the retail cost of repairing the vehicle based on a
complete written retail repair estimate or invoice, exclusive of the actual cost incurred to
repair, replace, or reinstall inflatable safety restraints and other vehicle components that
must be replaced due to the deployment of the inflatable safety restraints.
(b) The disclosure required under this subdivision must be made in writing on the
application for title and registration or other transfer document, in a manner prescribed
by the registrar of motor vehicles. The registrar shall revise the certificate of title form,
including the assignment by seller (transferor) and reassignment by licensed dealer
sections of the form, the separate application for title forms, and other transfer documents
to accommodate this disclosure. If the seller is a motor vehicle dealer licensed pursuant to
section 168.27, the disclosure required by this section must be made orally by the dealer to
the prospective buyer in the course of the sales presentation.
(c) Upon transfer and application for title to a vehicle covered by this subdivision,
the registrar shall record the term "rebuilt" on the first Minnesota certificate of title and all
subsequent Minnesota certificates of title used for that vehicle.
    Subd. 2. Form of disclosure. The disclosure required in this section must be made
in substantially the following form: "To the best of my knowledge, this vehicle has .....
has not ..... sustained damage, exclusive of any costs to repair, replace, or reinstall air bags
and other components that were replaced due to deployment of air bags, in excess of
70 80 percent actual cash value."

    Sec. 61. Minnesota Statutes 2010, section 325F.6644, subdivision 1, is amended to
read:
    Subdivision 1. Damage disclosure. Section 325F.6641 does not apply to vehicles
that are six years old or older as calculated from the first day of January of the designated
model year or to commercial motor vehicles with a gross vehicle weight rating of 16,000
pounds or more or to motorcycles.

    Sec. 62. Minnesota Statutes 2010, section 325F.6644, subdivision 2, is amended to
read:
    Subd. 2. Title branding. Section 325F.6642 does not apply to commercial motor
vehicles with a gross vehicle weight rating of 16,000 pounds or more or to motorcycles,
other than reconstructed vehicles, as defined in section 168A.01, subdivision 16, and
restored pioneer vehicles, as defined in section 168A.01, subdivision 16a.

    Sec. 63. Laws 2009, chapter 36, article 3, section 28, is amended to read:
    Sec. 28. DESIGN-BUILD PROJECT SELECTION COUNCIL LOCAL
PROJECTS.
    Subdivision 1. Establishment of council. A Design-Build Project Selection
Council is established to select, evaluate, and support county and municipal transportation
projects on the state-aid system that are conducive to use of the design-build method of
contracting and to report to the legislature.
    Subd. 1a. Selection authority. The commissioner of transportation or the
commissioner's designee from the Department of Transportation State Aid for Local
Transportation Division shall select, evaluate, and support county and municipal
transportation projects on the state-aid system that are conducive to use of the design-build
method of contracting.
    Subd. 2. Duties of council commissioner. In order to accomplish these purposes,
the council commissioner shall:
(1) review applications for participation received by the commissioner from counties
and cities;
(2) select projects for participation in the pilot program a maximum of 15 projects
on the state-aid system, no more than ten of which may be on the county state-aid highway
system, and no more than ten of which may be on the municipal state-aid street system
each calendar year;
(3) determine that the use of design-build in the selected projects would serve the
public interest, after considering, at a minimum:
(i) the extent to which the municipality can adequately define the project
requirements in a proposed scope of the design and construction desired;
(ii) the time constraints for delivery of the project;
(iii) the capability of potential contractors with the design-build method of project
delivery;
(iv) the suitability of the project for use of the design-build method of project
delivery with respect to time, schedule, costs, and quality factors;
(v) the capability of the municipality to manage the project, including the
employment of experienced personnel or outside consultants; and
(vi) the original character of the product or the services; and
(4) periodically review and evaluate the use of design-build in the selected projects;
and
(5) assist the commissioner in preparing a report to the legislature at the conclusion
of the pilot program.
    Subd. 3. Membership. (a) The council is composed of the following members:
(1) two contractors, at least one of whom represents a small contracting firm,
selected by the Associated General Contractors, Minnesota chapter;
(2) two project designers selected by the American Council of Engineering
Companies, Minnesota chapter;
(3) one representative of a metropolitan area county selected by the Association
of Minnesota Counties;
(4) one representative of a greater Minnesota county selected by the Association
of Minnesota Counties;
(5) one representative of a metropolitan area city selected by the League of
Minnesota Cities;
(6) one representative of a greater Minnesota city selected by the League of
Minnesota Cities; and
(7) the commissioner of transportation or a designee from the Minnesota Department
of Transportation Division of State Aid for Local Transportation.
(b) All appointments required by paragraph (a) must be completed by August
1, 2009.
(c) The commissioner or the commissioner's designee shall convene the first meeting
of the council within two weeks after the members have been appointed to the council and
shall serve as chair of the council.
    Subd. 4. Report to legislature. Annually, by January 15, the council shall submit
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation budget and policy, and to the legislature as provided under
Minnesota Statutes, section 15.059. The report must summarize the design-build pilot
program selection process, including the number of applications considered; the proposal
process for each project that was selected; the contracting process for each project that was
completed; and project costs. The report must evaluate the process and results applying
the performance-based measures with which the commissioner evaluates trunk highway
design-build projects. The report must include any recommendations for future legislation.
EFFECTIVE DATE.This section is effective the day following final enactment
and expires upon completion of nine design-build projects.

    Sec. 64. Laws 2009, chapter 36, article 3, section 28, the effective date, is amended to
read:
EFFECTIVE DATE.This section is effective the day following final enactment
and expires on October 1, 2012, or upon completion of nine design-build projects under
this pilot program, whichever occurs first.

    Sec. 65. Laws 2009, chapter 36, article 3, section 29, is amended to read:
    Sec. 29. DESIGN-BUILD CONTRACTING PILOT PROGRAM.
    Subdivision 1. Definitions. The following terms have the meanings given:
(1) "commissioner" means the commissioner of transportation;
(2) "municipality" means a county or statutory or home rule charter city;
(3) "design-build contract" means a single contract between a municipality and a
design-build company or firm to furnish the architectural or engineering and related design
services as well as the labor, material, supplies, equipment, and construction services for
the transportation project;
(4) "design-build firm" means a proprietorship, partnership, limited liability
partnership, joint venture, corporation, any type of limited liability company, professional
corporation, or any legal entity;
(5) "design professional" means a person who holds a license under Minnesota
Statutes, chapter 326B, that is required to be registered under Minnesota law;
(6) "design-build transportation project" means the procurement of both the design
and construction of a transportation project in a single contract with a company or
companies capable of providing the necessary engineering services and construction;
(7) "design-builder" means the design-build firm that proposes to design and build a
transportation project governed by the procedures of this section;
(8) "request for proposals" or "RFP" means the document by which the municipality
solicits proposals from qualified design-build firms to design and construct the
transportation project;
(9) "request for qualifications" or "RFQ" means a document to qualify potential
design-build firms; and
(10) "responsive proposal" means a technical proposal of which no major component
(i) contradicts the goals of the project, (ii) materially violates an RFP requirement so as
to give the proposer a competitive advantage, or (iii) places conditions on a proposal
inconsistent with the requirements of the RFP.
    Subd. 2. Establishment of pilot the program. (a) The commissioner of
transportation shall conduct a design-build contracting pilot program to select local
transportation projects for participation in the program, to conduct information sessions
for engineers and contractors, to support and evaluate the use of the design-build method
of contracting by counties and statutory and home rule charter cities in constructing,
improving, and maintaining streets and highways on the state-aid system, and to report to
the legislature.
(b) The commissioner must concur in the RFQ and RFP prior to solicitation.
(c) The selection of design-build projects under the pilot program must be as made
by the Design-Build Project Selection Council established commissioner as provided in
section 28.
    Subd. 3. Licensing requirements. (a) Each design-builder shall employ, or have
as a partner, member, officer, coventurer, or subcontractor, a person duly licensed and
registered to provide the design services required to complete the project and do business
in the state, including the provision of sureties of sufficient amount to protect the interests
of the awarding municipality.
(b) A design-builder may enter into a contract to provide professional or construction
services for a project that the design-builder is not licensed, registered, or qualified to
perform, so long as the design-builder provides those services through subcontractors with
duly licensed, registered, or otherwise qualified individuals in accordance with Minnesota
Statutes, sections 161.3410 to 161.3428.
(c) Nothing in this section authorizing design-build contracts is intended to limit or
eliminate the responsibility or liability owed by a professional on a design-build project to
the state, municipality, or other third party under existing law.
(d) The design service portion of a design-build contract must be considered a
service and not a product.
    Subd. 4. Information session for municipal engineer. After a project is selected
for participation in the design-build contracting pilot program, the commissioner or the
commissioner's designee with design-build experience shall conduct an information
session for the municipality's engineer for each selected project, in which issues unique
to design-build must be discussed, including, but not limited to, writing an RFP, project
oversight requirements, assessing risk, and communication with the design-build firm.
After participation in the information session, the municipality's engineer is qualified to
post the selected project, along with any future design-build project RFP in the pilot
program.
    Subd. 5. Technical Review Committee. During the phase one RFQ and before
solicitation, the municipality shall appoint a Technical Review Committee of at least
five individuals. The Technical Review Committee must include an individual whose
name and qualifications are submitted to the municipality by the Minnesota chapter of
the Associated General Contractors, after consultation with other commercial contractor
associations in the state. Members of the Technical Review Committee who are not state
employees are subject to the Minnesota Government Data Practices Act and Minnesota
Statutes, section 16C.06, to the same extent that state agencies are subject to those
provisions. A Technical Review Committee member may not participate in the review or
discussion of responses to the RFQ or RFP when a design-build firm in which the member
has a financial interest has responded to the RFQ or RFP. "Financial interest" includes,
but is not limited to, being or serving as an owner, employee, partner, limited liability
partner, shareholder, joint venturer, family member, officer, or director of a design-build
firm responding to an RFQ or RFP for a specific project, or having any other economic
interest in that design-build firm. The members of the Technical Review Committee must
be treated as municipal employees in the event of litigation resulting from any action
arising out of their service on the committee.
    Subd. 6. Phase one; design-build RFQ. The municipality shall prepare an RFQ,
which must include the following:
(1) the minimum qualifications of design-builders necessary to meet the requirements
for acceptance;
(2) a scope of work statement and schedule;
(3) documents defining the project requirements;
(4) the form of contract to be awarded;
(5) the weighted selection criteria for compiling a short list and the number of firms
to be included in the short list, which must be at least two but not more than five;
(6) a description of the request for proposals (RFP) requirements;
(7) the maximum time allowed for design and construction;
(8) the municipality's estimated cost of design and construction;
(9) requirements for construction experience, design experience, financial,
personnel, and equipment resources available from potential design-builders for the
project and experience in other design-build transportation projects or similar projects,
provided that these requirements may not unduly restrict competition; and
(10) a statement that "past performance" or "experience" or other criteria used in the
RFQ evaluation process does not include the exercise or assertion of a person's legal rights.
    Subd. 7. Information session for prospective design-build firms. After a
design-build project is advertised, any prospective design-build firm shall attend a
design-build information session conducted by the commissioner or the commissioner's
designee with design-build experience. The information must include information about
design-build contracts, including, but not limited to, communication with partner firms,
project oversight requirements, assessing risk, and communication with the municipality's
engineer. After participation in the information session, the design-build firm is eligible to
bid on the design-build project and any future design-build pilot program projects.
    Subd. 8. Evaluation. The selection team shall evaluate the design-build
qualifications of responding firms and shall compile a short list of no more than five
most highly qualified firms in accordance with qualifications criteria described in the
RFQ. If only one design-build firm responds to the RFQ or remains on the short list, the
municipality may readvertise or cancel the project as the municipality deems necessary.
    Subd. 9. Phase two; design-build RFP. The municipality shall prepare an RFP,
which must include:
(1) the scope of work, including (i) performance and technical requirements, (ii)
conceptual design, (iii) specifications consistent with state standards and specifications,
and (iv) functional and operational elements for the delivery of the completed project, all
of which must be prepared by a registered or licensed professional engineer;
(2) copies of the contract documents that the successful proposer will be expected to
sign;
(3) the maximum time allowable for design and construction;
(4) the road authority's estimated cost of design and construction;
(5) the requirement that a submitted proposal be segmented into two parts, a
technical proposal and a price proposal;
(6) the requirement that each proposal be in a separately sealed, clearly identified
package and include the date and time of the submittal deadline;
(7) the requirement that the technical proposal include a critical path method,
bar schedule of the work to be performed, or similar schematic; preliminary design
plans and specifications; technical reports; calculations; permit requirements; applicable
development fees; and other data requested in the RFP;
(8) the requirement that the price proposal contain all design, construction,
engineering, inspection, and construction costs of the proposed project;
(9) the requirement that surety be submitted equal to the total amount of the proposal;
(10) a description of the qualifications required of the design-builder and the
selection criteria, including the weight of each criterion and subcriterion;
(11) the date, time, and location of the public opening of the sealed price proposals;
(12) the amount of, and eligibility for, a stipulated fee;
(13) other information relevant to the project; and
(14) a statement that "past performance," "experience," or other criteria used in the
RFP evaluation process does not include the exercise or assertion of a person's legal rights.
    Subd. 10. Design-build award; computation; announcement. A design-build
contract shall be awarded as follows:
(a) The Technical Review Committee shall score the technical proposals of the
proposers selected under subdivision 8 using the selection criteria in the RFP. The
Technical Review Committee shall then submit a technical proposal score for each
design-builder to the municipality. The Technical Review Committee shall reject any
nonresponsive proposal, including those unable to provide sufficient surety to guarantee
project completion. The municipality shall review the technical proposal scores.
(b) The commissioner or the commissioner's designee shall review the technical
proposal scores. The commissioner shall submit the final technical proposal scores to the
municipality.
(c) The municipality shall announce the technical proposal score for each
design-builder and shall publicly open the sealed price proposals and shall divide each
design-builder's price by the technical score that the commissioner has given to it to obtain
an adjusted score. The design-builder selected must be that responsive and responsible
design-builder whose adjusted score is the lowest.
(d) If a time factor is included with the selection criteria in the RFP package, the
municipality may use a value of the time factor established by the municipality as a
criterion in the RFP.
(e) Unless all proposals are rejected, the municipality shall award the contract
to the responsive and responsible design-builder with the lowest adjusted score. The
municipality shall reserve the right to reject all proposals.
(f) The municipality shall award a stipulated fee not less than two-tenths of one
percent of the municipality's estimated cost of design and construction to each short-listed,
responsible proposer who provides a responsive but unsuccessful proposal. If the
municipality does not award a contract, all short-listed proposers must receive the
stipulated fee. If the municipality cancels the contract before reviewing the technical
proposals, the municipality shall award each design-builder on the short list a stipulated
fee of not less than two-tenths of one percent of the municipality's estimated cost of
design and construction. The municipality shall pay the stipulated fee to each proposer
within 90 days after the award of the contract or the decision not to award a contract.
In consideration for paying the stipulated fee, the municipality may use any ideas or
information contained in the proposals in connection with any contract awarded for the
project or in connection with a subsequent procurement, without any obligation to pay
any additional compensation to the unsuccessful proposers. Notwithstanding the other
provisions of this subdivision, an unsuccessful short-list proposer may elect to waive
the stipulated fee. If an unsuccessful short-list proposer elects to waive the stipulated
fee, the municipality may not use ideas and information contained in that proposer's
proposal. Upon the request of the municipality, a proposer who waived a stipulated fee
may withdraw the waiver, in which case the municipality shall pay the stipulated fee to the
proposer and thereafter may use ideas and information in the proposer's proposal.
    (g) The municipality shall not limit the ability of design-builders that have submitted
proposals to protest a contemplated or actual award by the commissioner by, among
other things, unreasonably restricting the time to protest; restricting the right to seek
judicial review of the commissioner's actions; attempting to change the judicial standard
of review; or requiring the protestor to pay attorney fees for an unsuccessful, nonfrivolous
protest. Unless all design-builders that have submitted proposals agree to execution of
a contract for the project without a waiting period beforehand, the municipality shall
wait at least seven days after both the award of the project and public disclosure of the
Technical Review Committee's scoring data and the successful proposal before executing
a contract for the project.
    Subd. 11. Low-bid design-build process. (a) The municipality may also use
low-bid, design-build procedures to award a design-build contract where the scope of
the work can be clearly defined.
(b) Low-bid design-build projects may require an RFQ and short-listing, and must
require an RFP.
(c) Submitted proposals under this subdivision must include separately a technical
proposal and a price proposal. The low-bid, design-build procedures must follow a
two-step process for review of the responses to the RFP as follows:
(1) the first step is the review of the technical proposal by the Technical Review
Committee as provided in subdivision 5. The Technical Review Committee must open
the technical proposal first and must determine if it complies with the requirements of the
RFP and is responsive. The Technical Review Committee may not perform any ranking
or scoring of the technical proposals; and
(2) the second step is the determination of the low bidder based on the price
proposal. The municipality may not open the price proposal until the review of the
technical proposal is complete.
(d) The contract award under low-bid, design-build procedures must be made to the
proposer whose sealed bid is responsive to the technical requirements as determined by
the Technical Review Committee and that is also the lowest bid.
(e) A stipulated fee may be paid for unsuccessful bids on low-bid, design-build
projects only when the municipality has required an RFQ and short-listed the most highly
qualified responsive bidders.
EFFECTIVE DATE.This section is effective the day following final enactment
and expires upon completion of nine design-build projects.

    Sec. 66. Laws 2009, chapter 36, article 3, section 29, the effective date, is amended to
read:
EFFECTIVE DATE.This section is effective the day following final enactment
and expires on October 1, 2012, or upon completion of nine design-build projects under
this pilot program, whichever occurs first.

    Sec. 67. PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.
(a) The commissioner of transportation is authorized to consider and utilize
public-private partnership procurement methods for up to three pilot projects if objective
analysis demonstrates that it provides better long-term value for the state than traditional
procurement methods.
(b) Notwithstanding Minnesota Statutes, section 160.845, 160.98, or any other law
to the contrary, the commissioner may consider for use in the pilot program any existing
public-private partnership mechanism or any proposed mechanism that proves the best
available option for the state. The commissioner may consider mechanisms that include,
but are not limited to, toll facilities, BOT facilities, or BTO facilities. For the purposes
of this paragraph, toll facilities, BOT facilities, and BTO facilities have the meanings
given under section 160.84.
(c) Among the projects the commissioner may consider is the construction of the
Interstate 94/U.S. Highway 10 River Crossing near marked Trunk Highway 24.

    Sec. 68. PILOT PROGRAM RESTRICTIONS.
(a) The commissioner may not receive, consider, evaluate, or accept unsolicited
proposals for a public-private initiative.
(b) The commissioner shall select a private entity or entities for a public-private
partnership on a competitive basis to the maximum extent possible.
(c) When entering into a public-private partnership, the commissioner may not enter
into any noncompete agreement that inhibits the state's ability to address ongoing or
future infrastructure needs.
(d) If the commissioner enters into a public-private partnership agreement that
includes a temporary transfer of ownership or control of a road, bridge, or other
infrastructure investment to the private entity, the agreement must include a provision
requiring the return of the road, bridge, or other infrastructure investment to the state
after a specified period of time.

    Sec. 69. CONSIDERATIONS IN SELECTING PRIVATE ENTITY.
In soliciting, evaluating, and selecting a private entity with which to enter into a
public-private project, the commissioner must consider:
(1) the ability of the proposed project to improve safety, reduce congestion, increase
capacity, and promote economic growth;
(2) the proposed cost of and financial plan for the project;
(3) the general reputation, qualifications, industry experience, and financial capacity
of the private entity;
(4) the project's proposed design, operation, and feasibility;
(5) comments from local citizens and affected jurisdictions;
(6) benefits to the public;
(7) the safety record of the private entity; and
(8) any other criteria the commissioner deems appropriate.

    Sec. 70. PUBLIC-PRIVATE AGREEMENT.
(a) A public-private agreement between the commissioner and a private entity shall,
at a minimum, specify:
(1) the planning, acquisition, financing, development, design, construction,
reconstruction, replacement, improvement, maintenance, management, repair, leasing, or
operation of the project;
(2) the term of the public-private agreement;
(3) the type of property interest, if any, that the private entity will have in the project;
(4) a description of the actions the commissioner may take to ensure proper
maintenance of the project;
(5) whether user fees will be collected on the project and the basis by which the
user fees shall be determined and modified;
(6) compliance with applicable federal, state, and local laws;
(7) grounds for termination of the public-private agreement by the commissioner; and
(8) procedures for amendment of the agreement.
(b) A public-private agreement between the commissioner and a private entity
may provide for:
(1) review and approval by the commissioner of the private entity's plans for the
development and operation of the project;
(2) inspection by the commissioner of construction and improvements to the project;
(3) maintenance by the private entity of a liability insurance policy;
(4) filing of appropriate financial statements by the private entity on a periodic basis;
(5) filing of traffic reports by the private entity on a periodic basis;
(6) financing obligations of the commissioner and the private entity;
(7) apportionment of expenses between the commissioner and the private entity;
(8) the rights and remedies available in the event of a default or delay;
(9) the rights and duties of the private entity, the commissioner, and other state or
local governmental entities with respect to the use of the project;
(10) the terms and conditions of indemnification of the private entity by the
commissioner;
(11) assignment, subcontracting, or other delegations of responsibilities of the
private entity or commissioner under agreement to third parties, including other private
entities or state agencies;
(12) if applicable, sale or lease to the private entity of private property related to
the project;
(13) traffic enforcement and other policing issues; and
(14) any other terms and conditions the commissioner deems appropriate.

    Sec. 71. FUNDING FROM FEDERAL GOVERNMENT.
(a) The commissioner may accept from the United States or any of its agencies
funds that are available to the state for carrying out the pilot program, whether the funds
are available by grant, loan, or other financial assistance.
(b) The commissioner may enter into agreements or other arrangements with the
United States or any of its agencies as necessary for carrying out the pilot program.
(c) The commissioner may combine federal, state, local, and private funds to finance
a public-private partnership pilot project.

    Sec. 72. REPORTING ON PUBLIC-PRIVATE PILOT PROGRAM.
By August 1, 2014, and annually by August 1 thereafter, 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 the pilot program authority. The listing must identify
each agreement, the contracting entities, contract amount and duration, any repayment
requirements, and provide an update on the project's progress. The listing may be
submitted electronically and is subject to Minnesota Statutes, section 3.195, subdivision 1.

    Sec. 73. DISTANCE-BASED FARE SURCHARGE; PILOT PROGRAM.
    Subdivision 1. Pilot program authorized. Notwithstanding Minnesota Statutes,
section 473.408, subdivision 2a, or any other law to the contrary, replacement service
transit providers operating under Minnesota Statutes, section 473.388, may establish a
pilot program that adds a distance-based surcharge to standard transit fares.
    Subd. 2. Pilot program restrictions. (a) A replacement service transit provider
exercising its authority under subdivision 1 may only impose a distance-based surcharge
on routes with a total length greater than 15 miles.
(b) Any distance-based surcharge imposed must be prorated on the basis of the
distance traveled by the rider paying the surcharge.
    Subd. 3. Reporting requirements. By August 1 of each year a pilot program is
in effect, the replacement service transit provider imposing the distance-based surcharge
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
report detailing the activities of the pilot program. The report shall include information
specifying the total revenue collected from the distance-based surcharge and the average
surcharge collected per rider, analyzing any impact the surcharge has had on the fare
policy considerations under Minnesota Statutes, section 473.408, subdivision 2, and any
other information requested by the chairs of the house of representatives and senate
committees having jurisdiction over transportation policy and finance.
EFFECTIVE DATE.This section is effective the day following final enactment
and expires on January 1, 2016.

    Sec. 74. REPORTS ON USE OF CONSTRUCTION MANAGER/GENERAL
CONTRACTOR METHOD.
    Subdivision 1. Submission of reports. The commissioner shall report on experience
with and evaluation of the construction manager/general contractor method of contracting
authorized in Minnesota Statutes, sections 161.3207 to 161.3209. The reports must be
submitted to the chairs and ranking minority members of the legislative committees with
jurisdiction over transportation policy or transportation finance and in compliance with
Minnesota Statutes, sections 3.195 and 3.197. An interim report must be submitted
no later than 12 months following the commissioner's acceptance of five construction
manager/general contractor contracts. A final report must be submitted no later than 12
months following the commissioner's acceptance of ten construction manager/general
contractor contracts.
    Subd. 2. Content of reports. The reports must include: (1) a description of
circumstances of any projects as to which construction manager/general contractor
requests for qualifications or requests for proposals were solicited, followed by a
cancellation of the solicitation; (2) a description of projects as to which construction
manager/general contractor method was utilized; (3) a comparison of project cost
estimates with final project costs, if available; and (4) evaluation of the construction
manager/general contractor method of procurement with respect to implications for
project cost, use of innovative techniques, completion time, and obtaining maximum
value. The final report must also include recommendations as to continued use of the
program and desired modifications to the program, and recommended legislation to
continue, discontinue, or modify the program.
EFFECTIVE DATE.This section is effective the day following final enactment
and expires one year following the acceptance of ten construction manager/general
contractor contracts.

    Sec. 75. MUNICIPAL STATE-AID STREET FUND 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. 76. TRANSFER OF MONEY FROM MUNICIPAL STATE-AID STREET
FUND FOR MUNICIPAL BOND DEBT SERVICE.
    Subdivision 1. Definitions. For purposes of this section, the following definitions
apply:
(1) "bonds" means municipal general obligation bonds dated July 17, 2008, of which
the original principal amount of $1,055,000 applies to state-aid streets; and
(2) "city" means a city that:
(i) issued bonds;
(ii) received municipal state-aid distributions immediately before the 2010 federal
decennial census; and
(iii) was found in the 2010 federal decennial census to have fewer than 5,000
population.
    Subd. 2. Population. In any calendar year in which the city is not eligible, other than
as provided by this section, to receive a municipal state-aid street fund apportionment, the
city is deemed to have a population of 5,000 or more solely for the purposes of Minnesota
Statutes, section 162.18, and solely with respect to the bonds defined in this section.
    Subd. 3. Deposit in sinking fund. The commissioner of management and budget
shall, until the bonds are retired, issue a warrant annually in the amount certified by the
commissioner of transportation as needed by the city for the principal and interest, to the
fiscal officer of the city, and the amount must be deposited by the fiscal officer in the
sinking fund from which the principal and interest on the bonds are payable.
    Subd. 4. Transfer from municipal state-aid street fund. In each year in which
the city is not eligible to receive a municipal state-aid street fund apportionment, other
than as provided by this section, the commissioner of transportation shall, following the
deductions under Minnesota Statutes, section 162.12, transfer from the municipal state-aid
street fund to the city's maintenance account money sufficient to pay the principal and
interest on the bonds as they become due.
    Subd. 5. Allocation of remaining municipal state-aid apportionment sum.
The commissioner of transportation shall 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
and expires on the earlier of the day after the bonds are retired or the day after the
commissioner of management and budget has, under this section or under Minnesota
Statutes, section 162.18, transferred to the city's sinking fund an amount that will be
sufficient to retire the bonds.

    Sec. 77. WATER PERMITTING PROCESSES FOR TRANSPORTATION
PROJECTS; REPORT.
By November 15, 2012, the commissioners of transportation, natural resources, and
the Pollution Control Agency, in consultation with local road authorities and the Board of
Water and Soil Resources, shall submit recommendations to the house of representatives
and senate committees and divisions with primary jurisdiction over environment and
natural resources policy and finance and transportation policy and finance on how
water-related permitting for transportation projects can best be streamlined through
creation of a single point of issuance system. The recommendations shall specifically:
(1) outline a single point of issuance system in which road authorities applying
for state water permits would interact with a single state agency serving as the sole
intermediary on behalf of all state agencies with an interest in a road authority's water
permit application;
(2) provide a goal for the maximum number of days that the state believes are
necessary to issue final water permitting decisions;
(3) identify how state entities with current oversight authority over water permitting
decisions would allocate resources to accommodate a single point of issuance system; and
(4) suggest strategies to enhance the coordination of federal and state water
permitting information gathering and decision-making.

    Sec. 78. RULE CHANGE.
The commissioner shall amend Minnesota Rules, part 7400.5300, subpart 3, to
remove the words "from Minnesota" and to allow a dealer to sell a junked vehicle as
described in subpart 3 to a purchaser whom the dealer verifies is a licensed scrap metal
processor. The commissioner must comply with Minnesota Statutes, section 14.389,
subdivision 5, in adopting the amendment.

    Sec. 79. REVISOR'S INSTRUCTION.
The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
in column A to the references listed in column B. The revisor shall also make necessary
cross-reference changes in Minnesota Statutes consistent with the renumbering.

		Column A	Column B
		169.011, subdivision 83	168B.011, subdivision 12a
		169.041	168B.035
		169.64, subdivision 5	168B.16
		169.86, subdivision 8	168B.15
		465.75	168B.14
		514.18, subdivision 1a	168B.045

    Sec. 80. REPEALER.
Minnesota Statutes 2010, sections 169.441, subdivision 5; 169.445, subdivision 2;
and 169.454, subdivision 10, are repealed.