1.1    .................... moves to amend H. F. No. 946 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1
1.4TRANSPORTATION APPROPRIATIONS

1.5
Section 1. SUMMARY OF APPROPRIATIONS.
1.6    The amounts shown in this section summarize direct appropriations, by fund, made
1.7in this article.
1.8
2008
2009
Total
1.9
General
$
126,717,000
$
108,980,000
$
235,697,000
1.10
Special Revenue
47,950,000
40,038,000
96,988,000
1.11
Trunk Highway
1,169,252,000
1,466,021,000
2,635,273,000
1.12
Airports
25,524,000
25,592,000
51,116,000
1.13
M.S.A.S.
131,979,000
153,811,000
285,790,000
1.14
C.S.A.H.
490,525,000
573,147,000
1,063,672,000
1.15
H.U.T.D.
8,938,000
9,238,000
18,176,000
1.16
Total
$
2,000,885,000
$
2,385,827,000
$
4,386,712,000

1.17
Sec. 2. TRANSPORTATION APPROPRIATIONS.
1.18    The sums shown in the columns marked "Appropriations" are appropriated to
1.19the agencies and for the purposes specified in this article. The appropriations are from
1.20the trunk highway fund, or another named fund, and are available for the fiscal years
1.21indicated for each purpose. The figures "2008" and "2009" used in this article mean that
1.22the appropriations listed under them are available for the fiscal year ending June 30, 2008,
1.23or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is
1.24fiscal year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the
1.25fiscal year ending June 30, 2007, are effective the day following final enactment.
1.26
APPROPRIATIONS
1.27
Available for the Year
2.1
Ending June 30
2.2
2008
2009

2.3
Sec. 3. TRANSPORTATION.
2.4
Subdivision 1.Total appropriation
$
1,749,744,000
$
2,151,794,000
2.5
Appropriations by Fund
2.6
2008
2009
2.7
General
14,230,000
19,239,000
2.8
Trunk Highway
1,087,536,000
1,380,055,000
2.9
Airports
25,474,000
25,542,000
2.10
C.S.A.H.
490,525,000
573,147,000
2.11
M.S.A.S.
131,979,000
153,811,000
2.12(a) This appropriation is to the commissioner
2.13of transportation. The amounts that may be
2.14spent for each purpose are specified in the
2.15following subdivisions.
2.16(b) Of this amount, $165,385,000 the first
2.17year and $332,750,000 the second year are
2.18from additional revenue from changes to the
2.19gasoline and special fuels excise taxes under
2.20article 3, sections 4 to 5.
2.21(c) Of this amount, $15,415,000 the first
2.22year and $59,907,000 the second year are
2.23from additional revenue from changes to the
2.24motor vehicle registration tax under article
2.253, section 2.
2.26(d) Of the amount from the general fund,
2.27$9,000 the first year and $18,000 the second
2.28year are for compensation adjustments.
2.29(e) Of the amount from the state airports
2.30fund, $66,000 the first year and $134,000
2.31the second year are for compensation
2.32adjustments.
2.33(f) Of the amount from the trunk highway
2.34fund, $6,138,000 the first year and
3.1$12,399,000 the second year are for
3.2compensation adjustments.
3.3
Subd. 2.Airport development and assistance
20,298,000
20,298,000
3.4(a) This appropriation is from the state
3.5airports fund and must be spent according
3.6to Minnesota Statutes, section 360.305,
3.7subdivision 4
.
3.8(b) $6,000,000 the first year is a onetime
3.9appropriation and $6,000,000 the second
3.10year is a onetime appropriation.
3.11(c) Notwithstanding Minnesota Statutes,
3.12section 16A.28, subdivision 6 , this
3.13appropriation is available for five years after
3.14appropriation.
3.15(d) If the appropriation for either year is
3.16insufficient, the appropriation for the other
3.17year is available for it.
3.18
Subd. 3.Aviation support and services
5,998,000
6,075,000
3.19
Appropriations by Fund
3.20
Trunk Highway
847,000
856,000
3.21
Airports
5,151,000
5,219,000
3.22$65,000 the first year and $65,000 the second
3.23year are for the Civil Air Patrol.
3.24
Subd. 4.Transit
19,545,000
19,561,000
3.25
Appropriations by Fund
3.26
General
18,812,000
18,814,000
3.27
Trunk Highway
733,000
747,000
3.28
Subd. 5.Freight
5,337,000
5,431,000
3.29
Appropriations by Fund
3.30
General
353,000
360,000
3.31
Trunk Highway
4,984,000
5,071,000
3.32
3.33
Subd. 6.Infrastructure operations and
maintenance
245,138,000
277,821,000
4.1The commissioner of transportation shall
4.2reopen when feasible the Culkin safety rest
4.3area, located on marked Interstate Highway
4.435.
4.5
Subd. 7.Infrastructure investment support
191,317,000
218,115,000
4.6(a) $266,000 the first year and $266,000
4.7the second year are available for grants to
4.8metropolitan planning organizations outside
4.9the seven-county metropolitan area.
4.10(b) $75,000 the first year and $75,000
4.11the second year are for a transportation
4.12research contingent account to finance
4.13research projects that are reimbursable
4.14from the federal government or from other
4.15sources. If the appropriation for either year
4.16is insufficient, the appropriation for the other
4.17year is available for it.
4.18(c) $600,000 the first year and $600,000
4.19the second year are available for grants
4.20for transportation-related activities outside
4.21the metropolitan area to identify critical
4.22concerns, problems, and issues. These grants
4.23are available:
4.24(1) to regional development commissions;
4.25(2) in regions where no regional development
4.26commission is functioning, to joint powers
4.27boards established under agreement of two or
4.28more political subdivisions in the region to
4.29exercise the planning functions of a regional
4.30development commission; and
4.31(3) in regions where no regional development
4.32commission or joint powers board is
4.33functioning, to the department's district office
4.34for that region.
5.1(d) $5,000,000 is for a pilot project to
5.2demonstrate technologies that will allow for
5.3the future replacement of the gas tax with a
5.4fuel-neutral mileage charge.
5.5
Subd. 8.State road construction
518,599,000
738,585,000
5.6(a) It is estimated that this appropriation will
5.7be funded as follows:
5.8
5.9
Federal Highway
Aid
193,500,000
350,400,000
5.10
Highway User Taxes
325,099,000
385,185,000
5.11(b) This appropriation is for the actual
5.12construction, reconstruction, and
5.13improvement of trunk highways, including
5.14design-build contracts and consultant usage
5.15to support these activities. This includes the
5.16cost of actual payment to landowners for
5.17lands acquired for highway rights-of-way,
5.18payment to lessees, interest subsidies, and
5.19relocation expenses.
5.20(c) The commissioner of transportation shall
5.21notify the chair of the Transportation Budget
5.22Division of the senate and the chair of the
5.23Transportation Finance Division of the house
5.24of representatives of any significant events
5.25that should cause the estimates in paragraph
5.26(a) to change.
5.27(d) $77,000,000 the second year is a onetime
5.28appropriation that is shifted from the first
5.29year. It does not subtract from the base
5.30appropriation in the first year or add to the
5.31base appropriation in the second year.
5.32(e) The commissioner may transfer up to
5.33$15,000,000 each year to the transportation
5.34revolving loan fund.
6.1(f) The commissioner may receive money
6.2covering other shares of the cost of
6.3partnership projects. These receipts are
6.4appropriated to the commissioner for these
6.5projects.
6.6
Subd. 9.Highway debt service
57,972,000
75,254,000
6.7$53,895,000 the first year and $65,128,000
6.8the second year are for transfer to the state
6.9bond fund. If this appropriation is insufficient
6.10to make all transfers required in the year for
6.11which it is made, the commissioner of finance
6.12shall notify the Committee on Finance of
6.13the senate and the Committee on Ways and
6.14Means of the house of representatives of
6.15the amount of the deficiency and shall then
6.16transfer that amount under the statutory open
6.17appropriation. Any excess appropriation
6.18cancels to the trunk highway fund.
6.19
Subd. 10.Electronic communications
5,117,000
5,202,000
6.20
Appropriations by Fund
6.21
General
9,000
9,000
6.22
Trunk Highway
5,108,000
5,193,000
6.23(a) The general fund appropriation is to equip
6.24and operate the Roosevelt signal tower for
6.25Lake of the Woods weather broadcasting.
6.26(b) $1,160,000 the first year and $1,160,000
6.27the second year are from the shift in funding
6.28from the trunk highway fund to the 911 of
6.29the shared interoperable radio system in the
6.30metropolitan area.
6.31
Subd. 11.County state-aids
490,525,000
573,147,000
7.1This appropriation is from the county
7.2state-aid highway fund and is available until
7.3spent.
7.4
Subd. 12.Municipal state-aids
131,979,000
153,811,000
7.5(a) This appropriation is from the municipal
7.6state-aid street fund and is available until
7.7spent.
7.8(b) If an appropriation for either county
7.9state aids or municipal state aids does not
7.10exhaust the balance in the fund from which
7.11it is made in the year for which it is made,
7.12the commissioner of finance, upon request
7.13of the commissioner of transportation, shall
7.14notify the chair of the Transportation Finance
7.15Division of the house of representatives
7.16and the chair of the Transportation Budget
7.17Division of the senate of the amount of the
7.18remainder and shall then add that amount
7.19to the appropriation. The amount added is
7.20appropriated for the purposes of county state
7.21aids or municipal state aids, as appropriate.
7.22(c) If the appropriation for either county state
7.23aids or municipal state aids does exhaust
7.24the balance in the fund from which it is
7.25made in the year for which it is made, the
7.26commissioner of finance shall notify the chair
7.27of the Transportation Finance Division of the
7.28house of representatives and the chair of the
7.29Transportation Budget Division of the senate
7.30of the amount by which the appropriation
7.31exceeds the balance and shall then reduce
7.32that amount from the appropriation.
7.33
Subd. 13.Flexible highway account transfers
8.1The commissioner of finance shall transfer
8.2from the flexible account in the county
8.3state-aid highway fund $5,950,000 the first
8.4year and $2,820,000 the second year to the
8.5municipal turnback account in the municipal
8.6state-aid street fund and $12,940,000 the first
8.7year and $15,330,000 the second year to the
8.8trunk highway fund; and the remainder in
8.9each year to the county turnback account in
8.10the county state-aid highway fund.
8.11
Subd. 14.Department support
40,559,000
41,090,000
8.12
Appropriations by Fund
8.13
Trunk Highway
40,534,000
41,065,000
8.14
Airports
25,000
25,000
8.15
Subd. 15.Buildings
17,361,000
17,403,000
8.16
Appropriations by Fund
8.17
General
56,000
56,000
8.18
Trunk Highway
17,305,000
17,347,000
8.19
Subd. 16.Transfers
8.20(a) With the approval of the commissioner of
8.21finance, the commissioner of transportation
8.22may transfer unencumbered balances among
8.23the appropriations from the trunk highway
8.24fund and the state airports fund made in this
8.25section. No transfer may be made from the
8.26appropriation for state road construction. No
8.27transfer may be made from the appropriations
8.28for debt service to any other appropriation.
8.29Transfers under this paragraph may not be
8.30made between funds. Transfers between
8.31programs must be reported immediately
9.1to the chair of the Transportation Budget
9.2Division of the senate and the chair of the
9.3Transportation Finance Committee of the
9.4house of representatives.
9.5(b) On or after July 1, 2007, the commissioner
9.6of finance shall:
9.7    (1) transfer $4,600,000 from the trunk highway revolving loan account in the
9.8transportation revolving loan fund to the trunk highway fund; and
9.9    (2) transfer $1,221,000 from the general fund to the trunk highway fund, to
9.10reimburse the fund for transfer of trunk highway land to the city of Mounds View.

9.11
Sec. 4. METROPOLITAN COUNCIL.
9.12
Subdivision 1.Total appropriation
$
78,753,000
$
78,753,000
9.13(a) This appropriation is to the metropolitan
9.14council from the general fund.
9.15(b) The amounts that may be spent for
9.16each purpose are specified in the following
9.17subdivisions.
9.18
Subd. 2.Bus transit
73,453,000
73,453,000
9.19This appropriation is for bus system
9.20operations.
9.21
Subd. 3.Rail operations
5,300,000
5,300,000
9.22(a) This appropriation is for operations of the
9.23Hiawatha light rail transit line.
9.24(b) This appropriation is for paying a portion
9.25of the Metropolitan Council's 50 percent
9.26share of operating costs for the Hiawatha
9.27light rail transit line after operating revenue
9.28and federal funds are used for light rail
9.29transit operations. The remaining 50 percent
9.30share of operating costs are to be paid by the
9.31Hennepin County Regional Rail Authority,
9.32using any or all of these sources:
9.33(1) general tax revenues of Hennepin County;
10.1(2) the authority's reserves; and
10.2(3) taxes levied under Minnesota
10.3Statutes, section 398A.04 , subdivision
10.48, notwithstanding any provision in that
10.5subdivision that limits amounts that may be
10.6levied for light rail transit purposes.

10.7
Sec. 5. PUBLIC SAFETY.
10.8
Subdivision 1.Total appropriation
$
149,400,000
$
153,513,000
10.9
Appropriations by Fund
10.10
2008
2009
10.11
General
11,721,000
10,196,000
10.12
Special Revenue
47,950,000
49,038,000
10.13
Trunk Highway
80,916,000
85,166,000
10.14
H.U.T.D.
8,813,000
9,113,000
10.15(a) This appropriation is to the commissioner
10.16of public safety. The amounts that may be
10.17spent for each purpose are specified in the
10.18following subdivisions.
10.19(b) Of the amount from the general fund,
10.20$133,000 the first year and $206,000
10.21the second year are for compensation
10.22adjustments.
10.23(c) Of the amount from the trunk
10.24highway fund, $4,072,000 the first year
10.25and $6,729,000 the second year are for
10.26compensation adjustments.
10.27(d) Of the amount from the special revenue
10.28fund, $57,000 the first year and $105,000
10.29the second year are for compensation
10.30adjustments.
10.31
Subd. 2.Office of communications
402,000
417,000
10.32
Appropriations by Fund
10.33
General
39,000
40,000
10.34
Trunk Highway
363,000
377,000
11.1
Subd. 3.Public safety support
7,942,000
8,122,000
11.2
Appropriations by Fund
11.3
General
3,245,000
3,336,000
11.4
Trunk Highway
3,331,000
3,420,000
11.5
H.U.T.D.
1,366,000
1,366,000
11.6(a) Of the amount from the general fund,
11.7$110,000 the first year is a onetime
11.8appropriation and $28,000 the second year
11.9is a onetime appropriation for a security
11.10coordinator to coordinate planning efforts for
11.11the Republican National Convention.
11.12(b) $380,000 the first year and $380,000
11.13the second year are for payment of public
11.14safety officer survivor benefits under
11.15Minnesota Statutes, section 299A.44. If the
11.16appropriation for either year is insufficient,
11.17the appropriation for the other year is
11.18available for it.
11.19(c) $1,199,000 the first year and $1,367,000
11.20the second year are to be deposited in the
11.21public safety officer's benefit account. This
11.22money is available for reimbursements under
11.23Minnesota Statutes, section 299A.465 .
11.24(d) $508,000 the first year and $508,000
11.25the second year are for soft body armor
11.26reimbursements under Minnesota Statutes,
11.27section 299A.38.
11.28(e) $792,000 the first year and $792,000
11.29the second year are appropriated from the
11.30general fund for transfer by the commissioner
11.31of finance to the trunk highway fund on
11.32December 31, 2007, and December 31, 2008,
11.33respectively, in order to reimburse the trunk
11.34highway fund for expenses not related to the
12.1fund. These represent amounts appropriated
12.2out of the trunk highway fund for general
12.3fund purposes in the administration and
12.4related services program.
12.5(f) $610,000 the first year and $610,000
12.6the second year are appropriated from
12.7the highway user tax distribution fund for
12.8transfer by the commissioner of finance to
12.9the trunk highway fund on December 31,
12.102007, and December 31, 2008, respectively,
12.11in order to reimburse the trunk highway
12.12fund for expenses not related to the fund.
12.13These represent amounts appropriated out
12.14of the trunk highway fund for highway
12.15user tax distribution fund purposes in the
12.16administration and related services program.
12.17(g) $716,000 the first year and $716,000
12.18the second year are appropriated from
12.19the highway user tax distribution fund for
12.20transfer by the commissioner of finance to
12.21the general fund on December 31, 2007, and
12.22December 31, 2008, respectively, in order to
12.23reimburse the general fund for expenses not
12.24related to the fund. These represent amounts
12.25appropriated out of the general fund for
12.26operation of the criminal justice data network
12.27related to driver and motor vehicle licensing.
12.28
Subd. 4.Technical support services
6,300,000
4,616,000
12.29
Appropriations by Fund
12.30
General
3,937,000
2,253,000
12.31
Trunk Highway
2,344,000
2,344,000
12.32
H.U.T.D.
19,000
19,000
12.33Of the amount from the general fund,
12.34$3,846,000 the first year and $2,162,000
13.1the second year are for information systems
13.2security and disaster recovery.
13.3
Subd. 5.Patrolling highways
67,626,000
71,522,000
13.4
Appropriations by Fund
13.5
General
37,000
37,000
13.6
Trunk Highway
67,497,000
71,393,000
13.7
H.U.T.D.
92,000
92,000
13.8(a) Of the amount from the trunk highway
13.9fund, $2,060,000 the first year and
13.10$3,653,000 the second year are for 40
13.11additional state patrol troopers under this
13.12subdivision and subdivision 6.
13.13(a) Of the amount from the trunk highway
13.14fund, $1,335,000 the first year and
13.15$1,335,000 the second year are for fuels costs
13.16under this subdivision and subdivision 6.
13.17
Subd. 6.Commercial vehicle enforcement
6,945,000
7,196,000
13.18
Subd. 7.Capitol security
4,463,000
4,530,000
13.19(a) This appropriation is from the general
13.20fund.
13.21(b) Of this amount, $1,500,000 the first
13.22year and $1,500,000 the second year are
13.23for a capital security increase consisting of
13.2420 additional security guard positions, one
13.25civilian supervisor, and security equipment.
13.26
Subd. 8.Vehicle services
26,032,000
26,609,000
13.27
Appropriations by Fund
13.28
Special Revenue
18,696,000
18,973,000
13.29
H.U.T.D.
7,336,000
7,636,000
14.1(a) The base appropriation from the highway
14.2user tax distribution fund is $7,936,000 for
14.3fiscal year 2010 and $8,236,000 for fiscal
14.4year 2011.
14.5(b) The special revenue fund appropriation is
14.6from the vehicle services operating account.
14.7(c) Of the amount from the special revenue
14.8fund, $47,000 the first year and $45,000 the
14.9second year are for a driver license and motor
14.10vehicle records contract coordinator.
14.11
Subd. 9.Driver services
27,940,000
28,712,000
14.12
Appropriations by Fund
14.13
Special Revenue
27,939,000
28,711,000
14.14
Trunk Highway
1,000
1,000
14.15(a) The special revenue fund appropriation is
14.16from the driver services operating account.
14.17(b) Of the amount from the special revenue
14.18fund, $25,000 the first year and $23,000 the
14.19second year are for a driver license and motor
14.20vehicle records contract coordinator.
14.21
Subd. 10.Traffic safety
435,000
435,000
14.22(a) Of this amount, $111,000 the first
14.23year and $111,000 the second year are
14.24for planning and administration of grants
14.25from the National Highway Traffic Safety
14.26Administration.
14.27(b) The commissioner of public safety shall
14.28spend 50 percent of the money available
14.29to the state under Public Law 105-206,
14.30section 164, and the remaining 50 percent
14.31must be transferred to the commissioner
14.32of transportation for hazard elimination
15.1activities under United States Code, title 23,
15.2section 152.
15.3
Subd. 11.Pipeline safety
1,315,000
1,354,000
15.4(a) This appropriation is from the pipeline
15.5safety account in the special revenue fund.
15.6(b) Of this amount, $264,000 the first year
15.7and $255,000 the second year are for an
15.8increase in funding to carry out the pipeline
15.9safety inspection program.

15.10
15.11
Sec. 6. GENERAL CONTINGENT
ACCOUNTS.
$
375,000
$
375,000
15.12
Appropriations by Fund
15.13
2008
2009
15.14
Airports
50,000
50,000
15.15
Trunk Highway
200,000
200,000
15.16
H.U.T.D.
125,000
125,000
15.17(a) The appropriations in this section
15.18may only be spent with the approval of
15.19the governor after consultation with the
15.20Legislative Advisory Commission under
15.21Minnesota Statutes, section 3.30.
15.22(b) If an appropriation in this section for
15.23either year is insufficient, the appropriation
15.24for the other year is available for it.

15.25
Sec. 7. TORT CLAIMS.
$
600,000
$
600,000
15.26(a) This appropriation is to the commissioner
15.27of finance.
15.28(b) If the appropriation for either year is
15.29insufficient, the appropriation for the other
15.30year is available for it.

15.31    Sec. 8. CONTINGENT TRUNK HIGHWAY APPROPRIATION.
15.32    The commissioner of transportation, with the approval of the governor after
15.33review by the Legislative Advisory Commission under Minnesota Statutes, section 3.30,
15.34may transfer all or part of the unappropriated balance in the trunk highway fund to an
16.1appropriation (1) for trunk highway design, construction, or inspection in order to take
16.2advantage of an unanticipated receipt of income to the trunk highway fund or to take
16.3advantage of federal advanced construction funding, (2) for trunk highway maintenance
16.4in order to meet an emergency, or (3) to pay tort or environmental claims. Any transfer
16.5as a result of the use of federal advanced construction funding must include an analysis
16.6of the effects on the long-term trunk highway fund balance. The amount transferred is
16.7appropriated for the purpose of the account to which it is transferred.

16.8    Sec. 9. USE OF STATE ROAD CONSTRUCTION APPROPRIATIONS.
16.9    Any money appropriated to the commissioner of transportation for state road
16.10construction for any fiscal year before fiscal year 2008 is available to the commissioner
16.11during fiscal years 2008 and 2009 to the extent that the commissioner spends the money
16.12on the state road construction project for which the money was originally encumbered
16.13during the fiscal year for which it was appropriated. The commissioner of transportation
16.14shall report to the commissioner of finance by August 1, 2007, and August 1, 2008, on a
16.15form the commissioner of finance provides, on expenditures made during the previous
16.16fiscal year that are authorized by this subdivision.

16.17    Sec. 10. EFFECTIVE DATE.
16.18Except as specifically provided otherwise, this article is effective July 1, 2007.

16.19ARTICLE 2
16.20TRUNK HIGHWAY BONDS

16.21
Section 1. TRUNK HIGHWAY BOND APPROPRIATIONS.
16.22    The sums shown in the column under "APPROPRIATIONS" are appropriated from
16.23the bond proceeds account in the trunk highway fund, or another named fund, to the state
16.24agencies or officials indicated, to be spent for public purposes. Appropriations of bond
16.25proceeds must be spent as authorized by the Minnesota Constitution, article XIV.
16.26
SUMMARY
16.27
Transportation
$
1,000,000,000
16.28
Bond Sale Expenses
$
1,000,000
16.29
TOTAL
$
1,001,000,000
16.30
APPROPRIATIONS

16.31
Sec. 2. TRANSPORTATION.
$
1,000,000,000
16.32(a) $100,000,000 is appropriated on the
16.33first day of fiscal years 2008 to 2017 to
16.34the commissioner of transportation, for
16.35the actual construction, reconstruction,
17.1and improvement of trunk highways. This
17.2includes the cost of actual payments to
17.3landowners for lands acquired for highway
17.4rights-of-way, payments to lessees, interest
17.5subsidies, and relocation expenses.
17.6(b) The commissioner of transportation may
17.7use up to $170,000,000 of this appropriation
17.8for program delivery.
17.9(c) The commissioner shall use at least
17.10$50,000,000 of this appropriation for
17.11accelerating transit facility improvements on
17.12or adjacent to trunk highways.

17.13
Sec. 3. BOND SALE EXPENSES.
$
1,000,000
17.14This appropriation is to the commissioner
17.15of finance for bond sale expenses under
17.16Minnesota Statutes, sections 16A.641,
17.17subdivision 8, and 167.50, subdivision 4.

17.18    Sec. 4. BOND SALE AUTHORIZATION.
17.19    To provide the money appropriated in this article from the bond proceeds account
17.20in the trunk highway fund, the commissioner of finance shall sell and issue bonds of
17.21the state in an amount up to $1,001,000,000 in the manner, on the terms, and with the
17.22effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
17.23Constitution, article XIV, section 11, at the times and in the amount requested by the
17.24commissioner of transportation. The proceeds of the bonds, except accrued interest and
17.25any premium received from the sale of the bonds, must be deposited in the bond proceeds
17.26account in the trunk highway fund.

17.27    Sec. 5. EFFECTIVE DATE.
17.28Except as specifically provided otherwise, this article is effective July 1, 2007.

17.29ARTICLE 3
17.30HIGHWAY USER TAXES

17.31    Section 1. Minnesota Statutes 2006, section 16A.88, is amended to read:
17.3216A.88 TRANSIT FUNDS ASSISTANCE FUND.
17.33    Subdivision 1. Transit assistance fund. A transit assistance fund is established
17.34within the state treasury. The fund receives money distributed under section 297B.09,
17.35subdivision 1, and other money as specified by law. Money in the fund must be allocated
18.1to the greater Minnesota transit account under subdivision 2 and the metropolitan area
18.2transit account under subdivision 3 in the manner specified, and must be used solely for
18.3transit purposes under article 14, section 13, of the Constitution.
18.4    Subd. 2. Greater Minnesota transit fund account. The greater Minnesota transit
18.5fund account is established within the transit assistance fund in the state treasury. Money
18.6in the fund account is annually appropriated to the commissioner of transportation for
18.7assistance to transit systems outside the metropolitan area under section 174.24. Beginning
18.8in fiscal year 2003, The commissioner may use up to $400,000 each year $408,000 in
18.9fiscal year 2008 and $416,000 in fiscal year 2009 and thereafter for administration of the
18.10transit program. The commissioner shall use the fund account for transit operations as
18.11provided in section 174.24 and related program administration.
18.12    Subd. 2 3. Metropolitan area transit fund account. The metropolitan area transit
18.13fund account is established within the transit assistance fund in the state treasury. All
18.14money in the fund account is annually appropriated to the Metropolitan Council for the
18.15funding of transit systems within the metropolitan area under sections 473.384, 473.386,
18.16473.387 , 473.388, and 473.405 to 473.449.
18.17    Subd. 3. Metropolitan area transit appropriation account. The metropolitan
18.18area transit appropriation account is established within the general fund. Money in the
18.19account is to be used for the funding of transit systems in the metropolitan area, subject to
18.20legislative appropriation.
18.21EFFECTIVE DATE.This section is effective July 1, 2007.

18.22    Sec. 2. Minnesota Statutes 2006, section 168.013, subdivision 1a, is amended to read:
18.23    Subd. 1a. Passenger automobile; hearse. (a) On passenger automobiles as defined
18.24in section 168.011, subdivision 7, and hearses, except as otherwise provided, the tax shall
18.25be $10 plus an additional tax equal to 1.25 percent of the base value.
18.26    (b) Subject to the classification provisions herein, "base value" means the
18.27manufacturer's suggested retail price of the vehicle including destination charge using list
18.28price information published by the manufacturer or determined by the registrar if no
18.29suggested retail price exists, and shall not include the cost of each accessory or item of
18.30optional equipment separately added to the vehicle and the suggested retail price.
18.31    (c) If the manufacturer's list price information contains a single vehicle identification
18.32number followed by various descriptions and suggested retail prices, the registrar shall
18.33select from those listings only the lowest price for determining base value.
18.34    (d) If unable to determine the base value because the vehicle is specially constructed,
18.35or for any other reason, the registrar may establish such value upon the cost price to the
19.1purchaser or owner as evidenced by a certificate of cost but not including Minnesota sales
19.2or use tax or any local sales or other local tax.
19.3    (e) The registrar shall classify every vehicle in its proper base value class as follows:
19.4
FROM
TO
19.5
$
0
$
199.99
19.6
200
399.99
19.7and thereafter a series of classes successively set in brackets having a spread of $200
19.8consisting of such number of classes as will permit classification of all vehicles.
19.9    (f) The base value for purposes of this section shall be the middle point between
19.10the extremes of its class.
19.11    (g) The registrar shall establish the base value, when new, of every passenger
19.12automobile and hearse registered prior to the effective date of Extra Session Laws 1971,
19.13chapter 31, using list price information published by the manufacturer or any nationally
19.14recognized firm or association compiling such data for the automotive industry. If unable
19.15to ascertain the base value of any registered vehicle in the foregoing manner, the registrar
19.16may use any other available source or method. The registrar shall calculate tax using base
19.17value information available to dealers and deputy registrars at the time the application for
19.18registration is submitted. The tax on all previously registered vehicles shall be computed
19.19upon the base value thus determined taking into account the depreciation provisions of
19.20paragraph (h).
19.21    (h) The annual additional tax computed upon the base value as provided herein,
19.22during the first and second years year of vehicle life shall be computed upon 100 percent
19.23of the base value; for the second year, 80 percent of such value; for the third and fourth
19.24years year, 90 70 percent of such value; for the fourth year, 60 percent of such value; for
19.25the fifth and sixth years year, 75 50 percent of such value; for the sixth year, 40 percent
19.26of such value; for the seventh year, 60 35 percent of such value; for the eighth year, 40
19.2730 percent of such value; for the ninth year, 30 20 percent of such value; for the tenth year,
19.28ten percent of such value; for the 11th and each succeeding year, the sum of $25.
19.29In no event shall the annual additional tax be less than $25. The total tax under this
19.30subdivision shall not exceed $189 for the first renewal period and shall not exceed $99
19.31for subsequent renewal periods. The total tax under this subdivision on any vehicle filing
19.32its initial registration in Minnesota in the second year of vehicle life shall not exceed
19.33$189 and shall not exceed $99 for subsequent renewal periods. The total tax under
19.34this subdivision on any vehicle filing its initial registration in Minnesota in the third or
19.35subsequent year of vehicle life shall not exceed $99 and shall not exceed $99 in any
20.1subsequent renewal period The annual additional tax under this paragraph must not exceed
20.2the annual additional tax that was previously paid or due on that vehicle.
20.3    (i) As used in this subdivision and section 168.017, the following terms have the
20.4meanings given: "initial registration" means the 12 consecutive months calendar period
20.5from the day of first registration of a vehicle in Minnesota; and "renewal periods" means
20.6the 12 consecutive calendar months periods following the initial registration period.

20.7    Sec. 3. Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:
20.8    Subd. 3. Exceptions. (a) The registrar shall register all vehicles subject to
20.9registration under the monthly series system for a period of 12 consecutive calendar
20.10months, unless:
20.11    (1) the application is an original rather than renewal application; or
20.12    (2) the applicant is a licensed motor vehicle lessor under section 168.27, in which
20.13case the applicant may apply for initial or renewed registration of a vehicle for a period
20.14of four or more months, the month of expiration to be designated by the applicant at the
20.15time of registration. However, to qualify for this exemption, the applicant must present
20.16the application to the registrar at St. Paul, or at deputy registrar offices as the registrar
20.17may designate.
20.18    (b) In any instance except that of a licensed motor vehicle lessor, the registrar shall
20.19not approve registering the vehicle subject to the application for a period of less than three
20.20months, except when the registrar determines that to do otherwise will help to equalize
20.21the registration and renewal work load of the department.
20.22    (c) As used in this subdivision, the following terms have the meanings given:
20.23    (1) "initial registration" means the 12 consecutive months calendar period from the
20.24day of first registration of a vehicle in Minnesota; and
20.25    (2) "renewal periods" means the 12 consecutive calendar months periods following
20.26the initial registration period.

20.27    Sec. 4. Minnesota Statutes 2006, section 296A.07, subdivision 3, is amended to read:
20.28    Subd. 3. Rate of tax. The gasoline excise tax is imposed at the following rates:
20.29    (1) E85 is taxed at the rate of 14.2 17.75 cents per gallon, and 21.3 cents per gallon
20.30after May 31, 2008;
20.31    (2) M85 is taxed at the rate of 11.4 14.25 cents per gallon, and 17.1 cents per gallon
20.32after May 31, 2008; and
20.33    (3) all other gasoline is taxed at the rate of 20 25 cents per gallon, and 30 cents
20.34per gallon after May 31, 2008.
20.35EFFECTIVE DATE.This section is effective June 1, 2007.

21.1    Sec. 5. Minnesota Statutes 2006, section 296A.08, subdivision 2, is amended to read:
21.2    Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:
21.3    (a) Liquefied petroleum gas or propane is taxed at the rate of 15 18.75 cents per
21.4gallon, and 22.5 cents per gallon after May 31, 2008.
21.5    (b) Liquefied natural gas is taxed at the rate of 12 15 cents per gallon, and 18 cents
21.6per gallon after May 31, 2008.
21.7    (c) Compressed natural gas is taxed at the rate of $1.739 $2.174 per thousand
21.8cubic feet;, or 20 25 cents per gasoline equivalent, and $2.609 per thousand cubic feet,
21.9or 30 cents per gasoline equivalent after May 31, 2008. For purposes of this paragraph,
21.10"gasoline equivalent," as defined by the National Conference on Weights and Measures,
21.11which is 5.66 pounds of natural gas.
21.12    (d) All other special fuel is taxed at the same rate as the gasoline excise tax as
21.13specified in section 296A.07, subdivision 2. The tax is payable in the form and manner
21.14prescribed by the commissioner.
21.15EFFECTIVE DATE.This section is effective June 1, 2007.

21.16    Sec. 6. Minnesota Statutes 2006, section 297B.09, subdivision 1, is amended to read:
21.17    Subdivision 1. Deposit of revenues. (a) Money collected and received under this
21.18chapter must be deposited as provided in this subdivision.
21.19    (b) From July 1, 2002, to June 30, 2003, 32 percent of the money collected and
21.20received must be deposited in the highway user tax distribution fund, 20.5 percent must be
21.21deposited in the metropolitan area transit fund under section 16A.88, and 1.25 percent
21.22must be deposited in the greater Minnesota transit fund under section 16A.88. The
21.23remaining money must be deposited in the general fund.
21.24    (c) From July 1, 2003, to June 30, 2007, 30 percent of the money collected and
21.25received must be deposited in the highway user tax distribution fund, 21.5 percent must be
21.26deposited in the metropolitan area transit fund under section 16A.88, 1.43 percent must be
21.27deposited in the greater Minnesota transit fund under section 16A.88, 0.65 percent must
21.28be deposited in the county state-aid highway fund, and 0.17 percent must be deposited
21.29in the municipal state-aid street fund. The remaining money must be deposited in the
21.30general fund.
21.31    (d) On and after July 1, 2007, 32 percent of the money collected and received must
21.32be deposited in the highway user tax distribution fund, 20.5 percent must be deposited
21.33in the metropolitan area transit fund under section 16A.88, and 1.25 percent must be
21.34deposited in the greater Minnesota transit fund under section 16A.88. The remaining
21.35money must be deposited in the general fund.
22.1    (b) From July 1, 2007 to June 30, 2008, 38.25 percent must be deposited in the
22.2highway user tax distribution fund, 23 percent must be deposited in the metropolitan area
22.3transit account, and 2.5 percent must be deposited in the greater Minnesota transit account.
22.4The remaining money must be deposited in the general fund.
22.5    (c) From July 1, 2008 to June 30, 2009, 44.25 percent must be deposited in the
22.6highway user tax distribution fund, 26.75 percent must be deposited in the metropolitan
22.7area transit account, and 2.75 percent must be deposited in the greater Minnesota transit
22.8account. The remaining money must be deposited in the general fund.
22.9    (e) From July 1, 2009 to June 30, 2010, 50.25 percent must be deposited in the
22.10highway user tax distribution fund, 30.5 percent must be deposited in the metropolitan
22.11area transit account, and 3 percent must be deposited in the greater Minnesota transit
22.12account. The remaining money must be deposited in the general fund.
22.13    (f) From July 1, 2010 to June 30, 2011, 56.25 percent must be deposited in the
22.14highway user tax distribution fund, 34.25 percent must be deposited in the metropolitan
22.15area transit account, and 3.25 percent must be deposited in the greater Minnesota transit
22.16account. The remaining money must be deposited in the general fund.
22.17    (g) On and after July 1, 2011, 60 percent must be deposited in the highway user tax
22.18distribution fund, 36.5 percent must be deposited in the metropolitan area transit account,
22.19and 3.5 percent must be deposited in the greater Minnesota transit account.
22.20EFFECTIVE DATE.This section is effective July 1, 2007.

22.21    Sec. 7. Minnesota Statutes 2006, section 473.446, subdivision 1, is amended to read:
22.22    Subdivision 1. Metropolitan area transit tax. (a) For the purposes of sections
22.23473.405 to 473.449 and the metropolitan transit system, except as otherwise provided in
22.24this subdivision, the council shall levy each year upon all taxable property within the
22.25metropolitan area, defined in section 473.121, subdivision 2, a transit tax consisting of:
22.26    (1) an amount necessary to provide full and timely payment of certificates of
22.27indebtedness, bonds, including refunding bonds or other obligations issued or to be issued
22.28under section 473.39 by the council for purposes of acquisition and betterment of property
22.29and other improvements of a capital nature and to which the council has specifically
22.30pledged tax levies under this clause; and
22.31    (2) an additional amount necessary to provide full and timely payment of certificates
22.32of indebtedness issued by the council, after consultation with the commissioner of finance,
22.33if revenues to the metropolitan area transit fund account in the fiscal year in which the
22.34indebtedness is issued increase over those revenues in the previous fiscal year by a
22.35percentage less than the percentage increase for the same period in the revised Consumer
23.1Price Index for all urban consumers for the St. Paul-Minneapolis metropolitan area
23.2prepared by the United States Department of Labor.
23.3    (b) Indebtedness to which property taxes have been pledged under paragraph (a),
23.4clause (2), that is incurred in any fiscal year may not exceed the amount necessary to
23.5make up the difference between (1) the amount that the council received or expects to
23.6receive in that fiscal year from the metropolitan area transit fund account and (2) the
23.7amount the council received from that fund in the previous fiscal year multiplied by the
23.8percentage increase for the same period in the revised Consumer Price Index for all urban
23.9consumers for the St. Paul-Minneapolis metropolitan area prepared by the United States
23.10Department of Labor.

23.11    Sec. 8. EFFECTIVE DATE.
23.12Except as specifically provided otherwise, this article is effective July 1, 2007.

23.13ARTICLE 4
23.14COUNTY STATE-AID HIGHWAY FUND DISTRIBUTION

23.15    Section 1. Minnesota Statutes 2006, section 162.06, is amended to read:
23.16162.06 ACCRUALS TO COUNTY STATE-AID HIGHWAY FUND;
23.17ACCOUNTS.
23.18    Subdivision 1. Estimate. (a) By December 15 of each year the commissioner shall
23.19estimate the amount of money that will be available to the county state-aid highway fund
23.20during that fiscal year. The amount available must be based on actual receipts from July 1
23.21through November 30, the unallocated fund balance, and the projected receipts for the
23.22remainder of the fiscal year. The total amount available, except for deductions as provided
23.23herein, shall be apportioned by the commissioner to the counties as hereinafter provided
23.24in section 162.07.
23.25    (b) For purposes of this section, the apportionment sum is the amount calculated
23.26in section 162.07, subdivision 1.
23.27    Subd. 2. Administrative costs of department. Two percent must be deducted
23.28from the total amount available in the county state-aid highway fund apportionment sum,
23.29set aside in a separate account, and used for administrative costs incurred by the state
23.30Transportation Department in carrying out the provisions relating to the county state-aid
23.31highway system.
23.32    Subd. 3. Disaster account. (a) After deducting administrative costs as provided in
23.33subdivision 2, the commissioner shall set aside each year a sum of money equal to one
23.34percent of the remaining money in the county state-aid highway fund apportionment sum
23.35to provide for a disaster account; provided that the total amount of money in the disaster
24.1account must never exceed two percent of the total sums to be apportioned to the counties.
24.2This sum The money must be used to provide aid to any county encountering disasters
24.3or unforeseen events affecting its county state-aid highway system, and resulting in an
24.4undue and burdensome financial hardship.
24.5    (b) Any county desiring aid by reason of disaster or unforeseen event shall request
24.6the aid in the form required by the commissioner. Upon receipt of the request, the
24.7commissioner shall appoint a board consisting of two representatives of the counties, who
24.8must be either a county engineer or member of a county board, from counties other than the
24.9requesting county, and a representative of the commissioner. The board shall investigate
24.10the matter and report its findings and recommendations in writing to the commissioner.
24.11    (c) Final determination of the amount of aid, if any, to be paid to the county from the
24.12disaster account must be made by the commissioner. Upon determining to aid a requesting
24.13county, the commissioner shall certify to the commissioner of finance the amount of the
24.14aid, and the commissioner of finance shall then issue a warrant in that amount payable
24.15to the county treasurer of the county. Money so paid must be expended on the county
24.16state-aid highway system in accordance with the rules of the commissioner.
24.17    Subd. 4. Research account. (a) Each year the screening board, provided for in
24.18section 162.07, subdivision 5, may recommend to the commissioner a sum of money that
24.19the commissioner shall set aside from the county state-aid highway fund apportionment
24.20sum and credit to a research account. The amount so recommended and set aside shall not
24.21exceed one-half of one percent of the preceding year's apportionment sum.
24.22    (b) Any money so set aside shall be used by the commissioner for the purpose of:
24.23    (1) conducting research for improving the design, construction, maintenance and
24.24environmental compatibility of state-aid highways and appurtenances;
24.25    (2) constructing research elements and reconstructing or replacing research elements
24.26that fail; and
24.27    (3) conducting programs for implementing and monitoring research results.
24.28    (c) Any balance remaining in the research account at the end of each year from
24.29the sum set aside for the year immediately previous, shall be transferred to the county
24.30state-aid highway fund.
24.31    Subd. 5. State park road account. After deducting for administrative costs and
24.32for the disaster account and research account as heretofore provided from the remainder
24.33of the total sum provided for in subdivision 1, there shall be deducted provided in this
24.34section, the commissioner shall deduct a sum equal to the three-quarters of one percent of
24.35the remainder apportionment sum. The sum so deducted shall be set aside in a separate
24.36account and shall be used for (1) the establishment, location, relocation, construction,
25.1reconstruction, and improvement of those roads included in the county state-aid highway
25.2system under Minnesota Statutes 1961, section 162.02, subdivision 6, which border and
25.3provide substantial access to an outdoor recreation unit as defined in section 86A.04 or
25.4which provide access to the headquarters of or the principal parking lot located within
25.5such a unit, and (2) the reconstruction, improvement, repair, and maintenance of county
25.6roads, city streets, and town roads that provide access to public lakes, rivers, state parks,
25.7and state campgrounds. Roads described in clause (2) are not required to meet county
25.8state-aid highway standards. At the request of the commissioner of natural resources the
25.9counties wherein such roads are located shall do such work as requested in the same
25.10manner as on any county state-aid highway and shall be reimbursed for such construction,
25.11reconstruction, or improvements from the amount set aside by this subdivision. Before
25.12requesting a county to do work on a county state-aid highway as provided in this
25.13subdivision, the commissioner of natural resources must obtain approval for the project
25.14from the County State-Aid Screening Board. The screening board, before giving its
25.15approval, must obtain a written comment on the project from the county engineer of the
25.16county requested to undertake the project. Before requesting a county to do work on a
25.17county road, city street, or a town road that provides access to a public lake, a river, a state
25.18park, or a state campground, the commissioner of natural resources shall obtain a written
25.19comment on the project from the county engineer of the county requested to undertake
25.20the project. Any sums paid to counties or cities in accordance with this subdivision shall
25.21reduce the money needs of said counties or cities in the amounts necessary to equalize
25.22their status with those counties or cities not receiving such payments. Any balance of the
25.23amount so set aside, at the end of each year shall be transferred to the county state-aid
25.24highway fund.
25.25    Subd. 6. County state-aid highway revolving loan account. A county state-aid
25.26highway revolving loan account is created in the transportation revolving loan fund. The
25.27commissioner may transfer to the account the amount allocated under section 162.065.
25.28Money in the account may be used to make loans. Funds in the county state-aid highway
25.29revolving loan account may be used only for aid in the construction, improvement, and
25.30maintenance of county state-aid highways. Funds in the account may not be used for any
25.31toll facilities project or congestion-pricing project. Repayments and interest from loans
25.32from the county state-aid highway revolving loan account must be credited to that account.
25.33Money in the account is annually appropriated to the commissioner and does not lapse.
25.34Interest earned from investment of money in this account must be deposited in the county
25.35state-aid highway revolving loan account.

26.1    Sec. 2. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
26.2to read:
26.3    Subdivision 1. Apportionment sum and excess sum. (a) For purposes of
26.4this subdivision, "amount available" means the amount identified in section 162.06,
26.5subdivision 1.
26.6    (b) The apportionment sum is calculated by subtracting the excess sum, as calculated
26.7in paragraph (c), from the amount available.
26.8    (c) The excess sum is calculated as the sum of revenue within the amount available:
26.9    (1) attributed to that portion of the gasoline excise tax rate in excess of 20 cents per
26.10gallon, and to that portion of the excise tax rate for E85, M85, and special fuels in excess
26.11of the energy equivalent of a gasoline tax rate of 20 cents per gallon;
26.12    (2) attributed to a change in the passenger vehicle registration tax under section
26.13168.013, imposed on or after July 1, 2007, that exceeds the amount collected in fiscal year
26.142007 multiplied by the annual average United States Consumer Price Index for all urban
26.15consumers, United States city average, as determined by the United States Department of
26.16Labor for the previous year, divided by the annual average for calendar year 2006; and
26.17    (3) attributed to that portion of the motor vehicle sales tax revenue in excess of the
26.18percentage allocated in fiscal year 2007.

26.19    Sec. 3. Minnesota Statutes 2006, section 162.07, subdivision 1, is amended to read:
26.20    Subdivision 1 1a. Formula Apportionment sum. After deducting for
26.21administrative costs and for the disaster account and research account and state park roads
26.22as heretofore provided, the remainder of the total sum provided for in section 162.06,
26.23subdivision 1
, shall be identified as the apportionment sum and shall be apportioned by
26.24the commissioner to the several counties on the basis of the needs of the counties as
26.25determined in accordance with the following formula:
26.26     The commissioner shall reduce the apportionment sum by the deductions provided
26.27for in section 162.06 for administrative costs, disaster account, research account, and
26.28state park road account. The commissioner shall apportion the remainder to the several
26.29counties on the basis of the needs of the counties, as follows:
26.30    (a) (1) An amount equal to ten percent of the apportionment sum shall be apportioned
26.31equally among the 87 counties.
26.32    (b) (2) An amount equal to ten percent of the apportionment sum shall be
26.33apportioned among the several counties so that each county shall receive of such amount
26.34the percentage that its motor vehicle registration for the calendar year preceding the
26.35one last past, determined by residence of registrants, bears to the total statewide motor
26.36vehicle registration.
27.1    (c) (3) An amount equal to 30 percent of the apportionment sum shall be apportioned
27.2among the several counties so that each county shall receive of such amount the percentage
27.3that its total lane-miles of approved county state-aid highways bears to the total lane-miles
27.4of approved statewide county state-aid highways. In 1997 and subsequent years no county
27.5may receive, as a result of an apportionment under this clause based on lane-miles rather
27.6than miles of approved county state-aid highways, an apportionment that is less than its
27.7apportionment in 1996.
27.8    (d) (4) An amount equal to 50 percent of the apportionment sum shall be apportioned
27.9among the several counties so that each county shall receive of such amount the percentage
27.10that its money needs bears to the sum of the money needs of all of the individual counties;
27.11provided, that the percentage of such amount that each county is to receive shall be
27.12adjusted so that each county shall receive in 1958 a total apportionment at least ten
27.13percent greater than its total 1956 apportionments from the state road and bridge fund;
27.14and provided further that those counties whose money needs are thus adjusted shall
27.15never receive a percentage of the apportionment sum less than the percentage that such
27.16county received in 1958.

27.17    Sec. 4. Minnesota Statutes 2006, section 162.07, is amended by adding a subdivision
27.18to read:
27.19    Subd. 1b. Excess sum. The commissioner shall apportion the excess sum to the
27.20several counties on the basis of the needs of the counties, as follows:
27.21    (1) An amount equal to 40 percent must be apportioned among the several counties
27.22so that each county receives of that amount the percentage that its motor vehicle
27.23registration for the calendar year preceding the one last past, determined by residence of
27.24registrants, bears to the total statewide motor vehicle registration.
27.25    (2) An amount equal to 60 percent must be apportioned among the several counties
27.26so that each county receives of that amount the percentage that its money needs bears to
27.27the sum of the money needs of all of the individual counties.

27.28    Sec. 5. EFFECTIVE DATE.
27.29Except as specifically provided otherwise, this article is effective July 1, 2007.

27.30ARTICLE 5
27.31LOCAL OPTION TAXES

27.32    Section 1. Minnesota Statutes 2006, section 161.04, is amended by adding a
27.33subdivision to read:
27.34    Subd. 5. Highway spending in metropolitan transportation area. In any year
27.35during which taxes authorized in section 297A.992, subdivision 2, are imposed, and
27.36exclusive of the expenditure of these revenues, the percentage of total trunk highway fund
28.1expenditures attributable to projects in the metropolitan transportation area, within the
28.2meaning of section 297A.992, subdivision 1, may not decrease more than two percentage
28.3points from the average of the previous five years of trunk highway fund metropolitan
28.4transportation area expenditures.

28.5    Sec. 2. Minnesota Statutes 2006, section 163.051, is amended to read:
28.6163.051 METROPOLITAN COUNTY WHEELAGE TAX.
28.7    Subdivision 1. Tax authorized. The board of commissioners of each metropolitan
28.8county is authorized to levy by resolution a wheelage tax of $5 for the year 1972 and
28.9each subsequent year thereafter by resolution $20 each year on each motor vehicle,
28.10except motorcycles as defined in section 169.01, subdivision 4, which is kept in such
28.11county when not in operation and which is that is domiciled in the county and subject to
28.12annual registration and taxation under chapter 168. The board may provide by resolution
28.13for collection of the wheelage tax by county officials or it may request that the tax be
28.14collected by the state registrar of motor vehicles, and the state registrar of motor vehicles
28.15shall collect such the tax on behalf of the county if requested, as provided in subdivision 2
28.16provided in the board resolution.
28.17    Subd. 2. Collection by registrar of motor vehicles. The wheelage tax levied by
28.18any metropolitan county, if made collectible by the state registrar of motor vehicles, shall
28.19be certified by the county auditor to the registrar not later than August 1 in the year before
28.20the a calendar year or years for which the tax is levied, and the registrar shall collect such
28.21the tax with the motor vehicle taxes registration tax on the each affected vehicles vehicle
28.22for such that year or years. Every An owner and every operator of such a motor vehicle
28.23subject to the wheelage tax shall furnish to the registrar all information requested by the
28.24registrar relating to the wheelage tax. No state motor A vehicle registration tax on any
28.25such motor vehicle for any such year shall may not be received or deemed paid unless the
28.26applicable wheelage tax is paid therewith. The proceeds of the wheelage tax levied by any
28.27metropolitan county, less any amount retained by the registrar to pay costs of collection of
28.28the wheelage tax, shall be paid to the commissioner of finance and deposited in the state
28.29treasury to the credit of the county wheelage tax fund of each metropolitan county.
28.30    Subd. 2a. Tax proceeds deposited; costs of collection; appropriation.
28.31    Notwithstanding the provisions of any other law, the state registrar of motor vehicles shall
28.32deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of the
28.33county wheelage tax road and bridge fund of each metropolitan county that levies the
28.34wheelage tax. The amount necessary to pay the costs of collection of said collecting the
29.1tax is appropriated to the registrar from the county wheelage tax road and bridge fund of
29.2each metropolitan county to the state registrar of motor vehicles that levies the tax.
29.3    Subd. 3. Distribution to metropolitan county; appropriation. On or before April
29.41 in 1972 and each subsequent year, the commissioner of finance shall issue a warrant in
29.5favor of the treasurer of each metropolitan county for which the registrar has collected a
29.6wheelage tax in the amount of such tax then on hand in the county wheelage tax fund.
29.7There is hereby appropriated from the county wheelage tax fund each year, to each
29.8metropolitan county entitled to payments authorized by this section, sufficient moneys
29.9to make such payments.
29.10    Subd. 4. Use of tax. The treasurer of each metropolitan county receiving moneys
29.11under subdivision 3 shall deposit such moneys in the county road and bridge fund. The
29.12moneys shall be used for purposes authorized by law which are highway purposes within
29.13the meaning of the Minnesota Constitution, article 14.
29.14    Subd. 5. Effect on road and bridge levy. The county auditor of each metropolitan
29.15county shall reduce the amount of the property taxes levied pursuant to law in 1973 for
29.16collection in 1974, by the board of commissioners of such county for the county road
29.17and bridge fund, by the following amount: Anoka County, $341,750; Carver County,
29.18$86,725; Dakota County, $386,165; Hennepin County, $2,728,425; Ramsey County,
29.19$1,276,815; Scott County, $104,805; Washington County, $227,220, and shall spread only
29.20the balance thereof on the tax rolls for collection in 1972. The county auditor shall also
29.21reduce the amount of such taxes levied pursuant to law in 1972 and any subsequent year,
29.22for collection in the respective ensuing years, by the amount of wheelage taxes received
29.23by the county in the 12 months immediately preceding such levy.
29.24    Subd. 6. Metropolitan county defined. "Metropolitan county" means any of the
29.25counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
29.26    Subd. 7. Offenses; penalties; application of other laws. Any owner or operator
29.27of a motor vehicle who shall willfully give any gives false information relative to the
29.28wheelage tax herein authorized to the registrar of motor vehicles or any metropolitan
29.29county, or who shall willfully fail fails or refuse refuses to furnish any such information,
29.30shall be is guilty of a misdemeanor. Except as otherwise herein provided in this section,
29.31the collection and payment of a wheelage tax and all related matters relating thereto shall
29.32be are subject to all provisions of law laws relating to collection and payment of motor
29.33vehicle taxes so far as applicable.

29.34    Sec. 3. Minnesota Statutes 2006, section 168.011, subdivision 6, is amended to read:
30.1    Subd. 6. Tax. "Tax" means the annual registration tax imposed on vehicles in lieu
30.2of all other taxes, except wheelage taxes which may be imposed by any city or county,
30.3and gross earnings taxes paid by companies. The annual tax is both a property tax and a
30.4highway use tax and shall be on the basis of the calendar year.

30.5    Sec. 4. Minnesota Statutes 2006, section 168.013, subdivision 1, is amended to read:
30.6    Subdivision 1. Imposition. Motor vehicles, except as set forth in section 168.012,
30.7using the public streets or highways in the state, and park trailers taxed under subdivision
30.81j, shall be taxed in lieu of all other taxes thereon, except wheelage taxes, so-called, which
30.9may be imposed by any city or county as provided by law, and except gross earnings
30.10taxes paid by companies subject or made subject thereto, and shall be privileged to
30.11use the public streets and highways, on the basis and at the rate for each calendar year
30.12as hereinafter provided.

30.13    Sec. 5. Minnesota Statutes 2006, section 297A.94, is amended to read:
30.14297A.94 DEPOSIT OF REVENUES.
30.15    (a) Except as provided in this section, the commissioner shall deposit the revenues,
30.16including interest and penalties, derived from the taxes imposed by this chapter in the state
30.17treasury and credit them to the general fund.
30.18    (b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
30.19account in the special revenue fund if:
30.20    (1) the taxes are derived from sales and use of property and services purchased for
30.21the construction and operation of an agricultural resource project; and
30.22    (2) the purchase was made on or after the date on which a conditional commitment
30.23was made for a loan guaranty for the project under section 41A.04, subdivision 3.
30.24The commissioner of finance shall certify to the commissioner the date on which the
30.25project received the conditional commitment. The amount deposited in the loan guaranty
30.26account must be reduced by any refunds and by the costs incurred by the Department of
30.27Revenue to administer and enforce the assessment and collection of the taxes.
30.28    (c) The commissioner shall deposit the revenues, including interest and penalties,
30.29derived from the taxes imposed on sales and purchases included in section 297A.61,
30.30subdivision 3
, paragraph (g), clauses (1) and (4), in the state treasury, and credit them
30.31as follows:
30.32    (1) first to the general obligation special tax bond debt service account in each fiscal
30.33year the amount required by section 16A.661, subdivision 3, paragraph (b); and
30.34    (2) after the requirements of clause (1) have been met, the balance to the general
30.35fund.
31.1    (d) The commissioner shall deposit the revenues, including interest and penalties,
31.2collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
31.3general fund. By July 15 of each year the commissioner shall transfer to the highway user
31.4tax distribution fund an amount equal to the excess fees collected under section 297A.64,
31.5subdivision 5
, for the previous calendar year.
31.6    (e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
31.7for fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and
31.8penalties, transmitted to the commissioner under section 297A.65, must be deposited by
31.9the commissioner in the state treasury as follows:
31.10    (1) 50 percent of the receipts must be deposited in the heritage enhancement account
31.11in the game and fish fund, and may be spent only on activities that improve, enhance, or
31.12protect fish and wildlife resources, including conservation, restoration, and enhancement
31.13of land, water, and other natural resources of the state;
31.14    (2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
31.15may be spent only for state parks and trails;
31.16    (3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
31.17may be spent only on metropolitan park and trail grants;
31.18    (4) three percent of the receipts must be deposited in the natural resources fund, and
31.19may be spent only on local trail grants; and
31.20    (5) two percent of the receipts must be deposited in the natural resources fund,
31.21and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
31.22Conservatory, and the Duluth Zoo.
31.23    (f) The revenue dedicated under paragraph (e) may not be used as a substitute
31.24for traditional sources of funding for the purposes specified, but the dedicated revenue
31.25shall supplement traditional sources of funding for those purposes. Land acquired with
31.26money deposited in the game and fish fund under paragraph (e) must be open to public
31.27hunting and fishing during the open season, except that in aquatic management areas or
31.28on lands where angling easements have been acquired, fishing may be prohibited during
31.29certain times of the year and hunting may be prohibited. At least 87 percent of the money
31.30deposited in the game and fish fund for improvement, enhancement, or protection of fish
31.31and wildlife resources under paragraph (e) must be allocated for field operations.
31.32    (g) The revenues, including interest and penalties, collected under sections 297A.992
31.33and 297A.993 must be deposited by the commissioner as provided for in those sections.
31.34    (h) The revenues, including interest and penalties, collected under section 297A.815
31.35must be deposited as provided for in that section.

32.1    Sec. 6. [297A.992] METROPOLITAN TRANSPORTATION SALES AND USE
32.2TAX.
32.3    Subdivision 1. Definitions. For purposes of this section, the following terms have
32.4the meanings given them:
32.5    (1) "metropolitan transportation area" means the counties of Anoka, Dakota,
32.6Hennepin, Ramsey, and Washington, and may include the counties of Carver and Scott if
32.7declared by resolution of its county board to be a part of the metropolitan transportation
32.8area; and
32.9    (2) "joint powers board" means the Metropolitan Transportation Area Joint Powers
32.10Board.
32.11    Subd. 2. Authorization; rates. (a) Notwithstanding sections 297A.99, subdivisions
32.121, 2, 3, 5, and 13; 477A.016; or any other law, the boards of the counties acting under a
32.13joint powers agreement as specified in this section may impose a transportation sales and
32.14use tax within the metropolitan transportation area, at a rate of one-half of one percent on
32.15retail sales and uses taxable under this chapter, and may impose an excise tax on the sale
32.16of new motor vehicles, at the rate of $20 per vehicle, occurring within the jurisdiction of
32.17the taxing authority, to fund transportation improvements.
32.18    (b) The tax imposed under this section is not included in determining if the total tax
32.19on lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,
32.20chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article
32.2112, section 87, or in determining a tax that may be imposed under any other limitations.
32.22    Subd. 3. Joint powers board. (a) Before imposing the taxes authorized under
32.23subdivision 2, all of the counties in the metropolitan transportation area shall enter into
32.24a joint powers agreement to create the joint powers board. A joint powers agreement
32.25under this section:
32.26    (1) must provide a process and timeline that allows an eligible county, by resolution
32.27of its county board, to join the joint powers board and impose the taxes authorized under
32.28subdivision 2;
32.29    (2) may provide for withdrawal of participating counties before final termination of
32.30the agreement; and
32.31    (3) may provide for a weighted-voting system for joint powers board decisions.
32.32    (b) The joint powers board must consist of one representative of each county
32.33appointed by its county board. The joint powers board has the powers and duties provided
32.34in this section and in section 471.59.
32.35    (c) The joint powers board shall maximize the availability and use of federal funds in
32.36projects funded under this section. The joint powers board may not utilize proceeds of the
33.1taxes imposed, or proceeds of bonds or other obligations issued, to reimburse counties for
33.2ordinary administrative expenses incurred in carrying out the provisions of this section.
33.3    (d) After the deductions allowed in section 297A.99, subdivision 11, the
33.4commissioner of revenue shall remit the proceeds of the taxes imposed under this section
33.5to the joint powers board.
33.6    Subd. 4. Grants for transportation projects. (a) The joint powers board
33.7shall by resolution, and in consultation with one elected city official from each county
33.8in the metropolitan transportation area appointed by the Association of Metropolitan
33.9Municipalities, establish a grant application process and define objective criteria for the
33.10award of grants.
33.11    (b) Grant applications must be submitted in a form prescribed by the joint powers
33.12board. An applicant must provide, in addition to all other information required by the joint
33.13powers board, the estimated cost of the project; the amount of the grant sought; possible
33.14sources of funding in addition to the grant sought; and, identification of any federal funds
33.15that will be utilized if the grant is awarded.
33.16    (c) Grants must be funded by the proceeds of the taxes imposed under this section, or
33.17bonds or other obligations issued by the joint powers board. Grant awards must be made
33.18annually by July 1 and funded in the next calendar year.
33.19    Subd. 5. Use of grant awards. (a) The joint powers board may only award grants to
33.20the state and political subdivisions, for the following purposes:
33.21    (1) construction or reconstruction of trunk highways or local roads of regional
33.22significance;
33.23    (2) capital improvements to transit ways;
33.24    (3) feasibility studies, planning, alternatives analyses, environmental studies,
33.25engineering, and construction of transit ways; and
33.26    (4) after December 31, 2012, operating assistance for transit ways.
33.27    Subd. 6 Administration, collection, enforcement. The administration, collection,
33.28and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all
33.29taxes imposed under this section.
33.30    Subd. 7. Report. In each year in which the taxes authorized in this section are
33.31imposed, the joint powers board shall report by February 1 to the house of representatives
33.32and senate committees having jurisdiction over transportation policy and finance
33.33concerning the revenues received and grants awarded.

33.34    Sec. 7. [297A.993] GREATER MINNESOTA TRANSPORTATION SALES AND
33.35USE TAX.
34.1    Subdivision 1. Authorization; rates. Notwithstanding sections 297A.99,
34.2subdivisions 1, 2, 3, 5, and 13; 477A.016; or any other law, the board of a county outside
34.3the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or
34.4more than one county outside the metropolitan transportation area acting under a joint
34.5powers agreement, may impose a transportation sales tax at a rate of one-half of one
34.6percent on retail sales and uses taxable under this chapter, and may impose an excise tax
34.7on the sale of new motor vehicles, at the rate of $20 per vehicle, occurring within the
34.8jurisdiction of the taxing authority. The taxes imposed under this section are subject to
34.9approval by a majority of the voters of the county or counties at a general election who
34.10vote on the question to impose the taxes.
34.11    Subd. 2. Allocation; termination. The proceeds of the taxes must be dedicated
34.12exclusively to payment of the cost of a specific transportation project or improvement.
34.13The transportation project or improvement must be designated by the board of the county,
34.14or more than one county acting under a joint powers agreement. The taxes must terminate
34.15after the project or improvement has been completed.
34.16    Subd. 3. Administration, collection, enforcement. The administration, collection,
34.17and enforcement provisions in section 297A.99, subdivisions 4 and 6 to 12, apply to all
34.18taxes imposed under this section.

34.19    Sec. 8. EFFECTIVE DATE.
34.20    This article is effective July 1, 2007, except that sections 6 and 7 are effective for
34.21sales made on and after January 1, 2008.

34.22ARTICLE 6
34.23TRANSPORTATION FINANCE

34.24    Section 1. Minnesota Statutes 2006, section 161.04, subdivision 3, is amended to read:
34.25    Subd. 3. Trunk highway revolving loan account. A trunk highway revolving loan
34.26account is created in the transportation revolving loan fund under section 446A.085.
34.27The commissioner may transfer money from the trunk highway fund to the trunk
34.28highway revolving loan account and from the trunk highway revolving loan account to
34.29the trunk highway fund. Money in the account may be used to make loans. Funds in
34.30the trunk highway revolving loan account may not be used for any toll facilities project
34.31or congestion-pricing project and may be used only for trunk highway purposes and
34.32repayments and interest from loans of those funds must be credited to the trunk highway
34.33revolving loan account in the transportation revolving loan fund. Money in the trunk
34.34highway revolving loan account is annually appropriated to the commissioner and does
35.1not lapse. Interest earned from investment of money in this account must be deposited in
35.2the trunk highway revolving loan account.

35.3    Sec. 2. Minnesota Statutes 2006, section 297A.815, is amended by adding a
35.4subdivision to read:
35.5    Subd. 3. Deposit of revenues. Notwithstanding section 297A.94 or any law to
35.6the contrary, money collected and received under this section must be deposited in the
35.7same manner and in the same proportions as provided for revenues collected under
35.8chapter 297B.
35.9EFFECTIVE DATE.This section is effective beginning with revenues collected
35.10and remitted beginning July 1, 2007.

35.11    Sec. 3. Minnesota Statutes 2006, section 473.388, subdivision 4, is amended to read:
35.12    Subd. 4. Financial assistance. (a) The council must grant the requested financial
35.13assistance if it determines that the proposed service is intended to replace the service to
35.14the applying city or town or combination thereof by the council and that the proposed
35.15service will meet the needs of the applicant at least as efficiently and effectively as the
35.16existing service.
35.17    (b) The amount of assistance which the council must provide to a system under this
35.18section may not be less than the sum of the amounts determined for each municipality
35.19comprising the system as follows:
35.20    (1) the transit operating assistance grants received under this subdivision by the
35.21municipality in calendar year 2001 or the tax revenues for transit services levied by the
35.22municipality for taxes payable in 2001, including that portion of the levy derived from
35.23the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of
35.24the municipality's aid under section 273.1398, subdivision 2, attributable to the transit
35.25levy; times
35.26    (2) the ratio of (i) the appropriation from the transit fund to the council for nondebt
35.27transit operations an amount equal to 3.623 percent of the state revenues generated from
35.28the taxes imposed under section 297A.815 and chapter 297B for the current fiscal year to
35.29(ii) the total levy certified by the council under section 473.446 and the opt-out transit
35.30operating assistance grants received under this subdivision in calendar year 2001 or the
35.31tax revenues for transit services levied by all replacement service municipalities under
35.32this section for taxes payable in 2001, including that portion of the levy derived from
35.33the areawide pool under section 473F.08, subdivision 3, clause (a), plus the portion of
35.34homestead and agricultural credit aid under section 273.1398, subdivision 2, attributable
35.35to nondebt transit levies, times
36.1    (3) the ratio of (i) the municipality's total taxable market value for taxes payable in
36.2the most recent year for which data is available 2007 divided by the municipality's total
36.3taxable market value for taxes payable in 2001, to (ii) the total taxable market value of
36.4all property in the metropolitan area located in replacement service municipalities for
36.5taxes payable in the most recent year for which data is available 2007 divided by the
36.6total taxable market value of all property in the metropolitan area located in replacement
36.7service municipalities for taxes payable in 2001.
36.8    (c) The council shall pay the amount to be provided to the recipient from the funds
36.9the council would otherwise use to fund its transit operations receives in the metropolitan
36.10area transit account under section 16A.88.

36.11    Sec. 4. REPEALER.
36.12Minnesota Statutes 2006, section 174.32, is repealed.

36.13    Sec. 5. EFFECTIVE DATE.
36.14Except as specifically provided otherwise, this article is effective July 1, 2007.

36.15ARTICLE 7
36.16DEPARTMENT OF PUBLIC SAFETY SERVICE FEES

36.17    Section 1. Minnesota Statutes 2006, section 168.017, subdivision 3, is amended to read:
36.18    Subd. 3. Exceptions. (a) The registrar shall register all vehicles subject to
36.19registration under the monthly series system for a period of 12 consecutive calendar
36.20months, unless:
36.21    (1) the application is an original rather than renewal application; or
36.22    (2) the applicant is a licensed motor vehicle lessor under section 168.27, in which
36.23case the applicant may apply for initial or renewed registration of a vehicle for a period
36.24of four or more months, the month of expiration to be designated by the applicant at the
36.25time of registration. However, to qualify for this exemption, the applicant must pay a $10
36.26administrative fee and present the application to the registrar at St. Paul, or at a designated
36.27deputy registrar offices as the registrar may designate. office. At the end of the initial
36.28registration period, the applicant may only renew the registration on the vehicle for the
36.29remainder of the period prescribed under subdivision 1 had the applicant not utilized the
36.30exception in this subdivision. Upon the renewal of registration, the applicant shall pay
36.311/12 of the annual tax for each calendar month remaining in the registration period in
36.32addition to a $10 administrative fee. Nothing in this subdivision prohibits the applicant
36.33from purchasing registration for an additional full registration period in conjunction with
36.34the purchase of the remainder portion.
36.35    (b) In any instance except that of a licensed motor vehicle lessor, the registrar shall
36.36not approve registering the vehicle subject to the application for a period of less than three
37.1months, except when the registrar determines that to do otherwise will help to equalize
37.2the registration and renewal work load of the department.
37.3    (c) The fee collected under paragraph (a), clause (2), must be deposited in the vehicle
37.4services operating account in the special revenue fund as specified in section 299A.705.

37.5    Sec. 2. Minnesota Statutes 2006, section 168.12, subdivision 5, is amended to read:
37.6    Subd. 5. Additional fee. (a) In addition to any fee otherwise authorized or any tax
37.7otherwise imposed upon any vehicle, the payment of which is required as a condition to
37.8the issuance of any plate or plates, the commissioner shall impose the fee specified in
37.9paragraph (b) that is calculated to cover the cost of manufacturing and issuing the plate
37.10or plates, except for plates issued to disabled veterans as defined in section 168.031 and
37.11plates issued pursuant to section 168.124, 168.125, or 168.27, subdivisions 16 and 17,
37.12for passenger automobiles. The commissioner shall issue graphic design plates only
37.13for vehicles registered pursuant to section 168.017 and recreational vehicles registered
37.14pursuant to section 168.013, subdivision 1g.
37.15    (b) Unless otherwise specified or exempted by statute, the following plate and
37.16validation sticker fees apply for the original, duplicate, or replacement issuance of a
37.17plate in a plate year:
37.18
Sequential Regular Double Plate
$
4.25
37.19
Sequential Special Plate-Double
$
7.00
37.20
Sequential Regular Single Plate
$
3.00
37.21
Sequential Special Plate-Single
$
5.50
37.22
Utility Trailer Self-Adhesive Plate
$
2.50
37.23
Nonsequential Double Plate
$
14.00
37.24
Nonsequential Single Plate
$
10.00
37.25
Duplicate Sticker
$
1.00
37.26
License Plate
Single
Double
37.27
Regular and Disability
$
4.50
$
6.00
37.28
Special
$
8.50
$
10.00
37.29
Personalized (Replacement)
$
10.00
$
14.00
37.30
Collector Category
$
13.50
$
15.00
37.31
Emergency Vehicle Display
$
3.00
$
6.00
37.32
Utility Trailer Self-Adhesive
$
2.50
37.33
Stickers
37.34
Duplicate year
$
1.00
$
1.00
37.35
37.36
International Fuel Tax
Agreement
$
2.50
37.37    (c) For vehicles that require two of the categories above, the registrar shall only
37.38charge the higher of the two fees and not a combined total.

38.1    Sec. 3. Minnesota Statutes 2006, section 168A.29, subdivision 1, is amended to read:
38.2    Subdivision 1. Amounts. (a) The department must be paid the following fees:
38.3    (1) for filing an application for and the issuance of an original certificate of title, the
38.4sum of $5.50 $6.25 of which $2.50 $3.25 must be paid into the vehicle services operating
38.5account of the special revenue fund under section 299A.705;
38.6    (2) for each security interest when first noted upon a certificate of title, including the
38.7concurrent notation of any assignment thereof and its subsequent release or satisfaction,
38.8the sum of $2, except that no fee is due for a security interest filed by a public authority
38.9under section 168A.05, subdivision 8;
38.10    (3) for the transfer of the interest of an owner and the issuance of a new certificate of
38.11title, the sum of $5.50 of which $2.50 must be paid into the vehicle services operating
38.12account of the special revenue fund under section 299A.705;
38.13    (4) for each assignment of a security interest when first noted on a certificate of title,
38.14unless noted concurrently with the security interest, the sum of $1;
38.15    (5) for issuing a duplicate certificate of title, the sum of $6.50 $7.25 of which $2.50
38.16$3.25 must be paid into the vehicle services operating account of the special revenue fund
38.17under section 299A.705.
38.18    (b) After June 30, 1994, in addition to each of the fees required under paragraph (a),
38.19clauses (1) and (3), the department must be paid $3.50. The additional $3.50 fee collected
38.20under this paragraph must be deposited in the special revenue fund and credited to the
38.21public safety motor vehicle account established in section 299A.70.

38.22    Sec. 4. Minnesota Statutes 2006, section 171.02, subdivision 3, is amended to read:
38.23    Subd. 3. Motorized bicycle. (a) A motorized bicycle may not be operated on any
38.24public roadway by any person who does not possess a valid driver's license, unless the
38.25person has obtained a motorized bicycle operator's permit or motorized bicycle instruction
38.26permit from the commissioner of public safety. The operator's permit may be issued to
38.27any person who has attained the age of 15 years and who has passed the examination
38.28prescribed by the commissioner. The instruction permit may be issued to any person who
38.29has attained the age of 15 years and who has successfully completed an approved safety
38.30course and passed the written portion of the examination prescribed by the commissioner.
38.31    (b) This course must consist of, but is not limited to, a basic understanding of:
38.32    (1) motorized bicycles and their limitations;
38.33    (2) motorized bicycle laws and rules;
38.34    (3) safe operating practices and basic operating techniques;
38.35    (4) helmets and protective clothing;
38.36    (5) motorized bicycle traffic strategies; and
39.1    (6) effects of alcohol and drugs on motorized bicycle operators.
39.2    (c) The commissioner may adopt rules prescribing the content of the safety course,
39.3examination, and the information to be contained on the permits. A person operating a
39.4motorized bicycle under a motorized bicycle permit is subject to the restrictions imposed
39.5by section 169.974, subdivision 2, on operation of a motorcycle under a two-wheel
39.6instruction permit.
39.7    (d) The fees for motorized bicycle operator's permits are as follows:
39.8
(1)
Examination and operator's permit, valid for one year
$ 66.75
39.9
(2)
Duplicate
$ 33.75
39.10
(3)
Renewal permit before age 21 and valid until age 21
$ 99.75
39.11
(4)
Renewal permit age 21 or older and valid for four years
$1515.75
39.12
(5)
Duplicate of any renewal permit
$ 4.505.25
39.13
39.14
(6)
Written examination and instruction permit, valid for 30
days
$ 66.75

39.15    Sec. 5. Minnesota Statutes 2006, section 171.06, subdivision 2, is amended to read:
39.16    Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are
39.17as follows:
39.18
39.19
Classified Driver's
License
D-$21.50
C-$25.50
B-$32.50
A-$40.50
39.20
Classified Under -21 D.L.
D-$21.50
C-$25.50
B-$32.50
A-$20.50
39.21
39.22
Classified Driver's
License
D-$22.25
C-$26.25
B-$33.25
A-$41.25
39.23
Classified Under-21 D.L.
D-$22.25
C-$26.25
B-$33.25
A-$21.25
39.24
39.25
Instruction Permit
$9.50
$10.25
39.26
39.27
Provisional License
$12.50
$13.25
39.28
39.29
39.30
Duplicate License or
duplicate identification
card
$11.00
$11.75
39.31
39.32
39.33
39.34
39.35
39.36
39.37
39.38
Minnesota identification
card or Under-21
Minnesota identification
card, other than duplicate,
except as otherwise
provided in section
171.07, subdivisions 3
and 3a
$15.50
$16.25
39.39    (b) Notwithstanding paragraph (a), an individual who holds a provisional license and
39.40has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33,
39.41169A.35 , or sections 169A.50 to 169A.53, (2) convictions for crash-related moving
39.42violations, and (3) convictions for moving violations that are not crash related, shall have a
40.1$3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation"
40.2has the meaning given it in section 171.04, subdivision 1.
40.3    (c) In addition to the driver's license fee required under paragraph (a), the
40.4commissioner shall collect an additional $4 processing fee from each new applicant
40.5or individual renewing a license with a school bus endorsement to cover the costs for
40.6processing an applicant's initial and biennial physical examination certificate. The
40.7department shall not charge these applicants any other fee to receive or renew the
40.8endorsement.

40.9    Sec. 6. Minnesota Statutes 2006, section 171.07, subdivision 3a, is amended to read:
40.10    Subd. 3a. Identification cards for seniors. A Minnesota identification card issued
40.11to an applicant 65 years of age or over shall be of a distinguishing color and plainly
40.12marked "senior." The fee for the card issued to an applicant 65 years of age or over shall
40.13be one-half the required fee for a class D driver's license rounded down to the nearest
40.14quarter dollar. A Minnesota identification card or a Minnesota driver's license issued to a
40.15person 65 years of age or over shall be valid identification for the purpose of qualifying
40.16for reduced rates, free licenses or services provided by any board, commission, agency or
40.17institution that is wholly or partially funded by state appropriations.

40.18    Sec. 7. Minnesota Statutes 2006, section 171.07, subdivision 11, is amended to read:
40.19    Subd. 11. Standby or temporary custodian. (a) Upon the written request of the
40.20applicant and upon payment of an additional fee of $3.50 $4.25, the department shall issue
40.21a driver's license or Minnesota identification card bearing a symbol or other appropriate
40.22identifier indicating that the license holder has appointed an individual to serve as a
40.23standby or temporary custodian under chapter 257B.
40.24    (b) The request must be accompanied by a copy of the designation executed under
40.25section 257B.04.
40.26    (c) The department shall maintain a computerized records system of all individuals
40.27listed as standby or temporary custodians by driver's license and identification card
40.28applicants. This data must be released to appropriate law enforcement agencies under
40.29section 13.69. Upon a parent's request and payment of a fee of $3.50 $4.25, the
40.30department shall revise its list of standby or temporary custodians to reflect a change
40.31in the appointment.
40.32    (d) At the request of the license or cardholder, the department shall cancel the
40.33standby or temporary custodian indication without additional charge. However, this
40.34paragraph does not prohibit a fee that may be applicable for a duplicate or replacement
40.35license or card, renewal of a license, or other service applicable to a driver's license or
40.36identification card.
41.1    (e) Notwithstanding sections 13.08, subdivision 1, and 13.69, the department
41.2and department employees are conclusively presumed to be acting in good faith when
41.3employees rely on statements made, in person or by telephone, by persons purporting to be
41.4law enforcement and subsequently release information described in paragraph (b). When
41.5acting in good faith, the department and department personnel are immune from civil
41.6liability and not subject to suit for damages resulting from the release of this information.
41.7    (f) The department and its employees:
41.8    (1) have no duty to inquire or otherwise determine whether a designation submitted
41.9under this subdivision is legally valid and enforceable; and
41.10    (2) are immune from all civil liability and not subject to suit for damages resulting
41.11from a claim that the designation was not legally valid and enforceable.
41.12    (g) Of the fees received by the department under this subdivision:
41.13    (1) Up to $61,000 received must be deposited in the general fund.
41.14    (2) All other fees must be deposited in the driver services operating account in the
41.15special revenue fund specified in section 299A.705.

41.16    Sec. 8. Minnesota Statutes 2006, section 171.20, subdivision 4, is amended to read:
41.17    Subd. 4. Reinstatement fee. (a) Before the license is reinstated, (1) an individual
41.18whose driver's license has been suspended under section 171.16, subdivisions 2 and 3;
41.19171.175; 171.18 ; or 171.182, or who has been disqualified from holding a commercial
41.20driver's license under section 171.165, and (2) an individual whose driver's license has
41.21been suspended under section 171.186 and who is not exempt from such a fee, must
41.22pay a fee of $20.
41.23    (b) Before the license is reinstated, an individual whose license has been suspended
41.24under sections 169.791 to 169.798 must pay a $20 reinstatement fee.
41.25    (c) When fees are collected by a licensing agent appointed under section 171.061, a
41.26handling charge is imposed in the amount specified under section 171.061, subdivision 4.
41.27The reinstatement fee and surcharge must be deposited in an approved state depository as
41.28directed under section 171.061, subdivision 4.
41.29    (d) Reinstatement fees collected under paragraph (a) for suspensions under sections
41.30171.16, subdivision 3 , and 171.18, subdivision 1, clause (10), must be deposited in the
41.31special revenue fund and are appropriated to the Peace Officer Standards and Training
41.32Board for peace officer training reimbursement to local units of government.
41.33    (e) A suspension may be rescinded without fee for good cause.

41.34    Sec. 9. Minnesota Statutes 2006, section 299D.09, is amended to read:
41.35299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
42.1    Fees charged for escort services provided by the State Patrol are annually
42.2appropriated to the commissioner of public safety to administer and provide these services.
42.3    The fees charged for services provided by the State Patrol with a vehicle are $73.60
42.4an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and thereafter. The fees
42.5charged for services provided without a vehicle are $54.00 an hour in fiscal year 2008 and
42.6$56.16 an hour in fiscal year 2009 and thereafter.
42.7    The fees charged for State Patrol flight services are $140 an hour for a fixed wing
42.8aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air.

42.9    Sec. 10. EFFECTIVE DATE.
42.10Except as specifically provided otherwise, this article is effective July 1, 2007."
42.11Delete the title and insert:
42.12"A bill for an act
42.13relating to transportation finance; appropriating money for transportation,
42.14Metropolitan Council, and public safety activities; providing for fund transfers,
42.15general contingent accounts, and tort claims; authorizing sale and issuance of
42.16trunk highway bonds for highways and transit facilities; modifying motor fuels
42.17tax and registration tax; allocating motor vehicle sales tax revenue; modifying
42.18county state-aid allocation formula; modifying county wheelage tax; authorizing
42.19local transportation sales taxes; modifying provisions relating to various
42.20transportation-related funds and accounts; modifying fees for license plates,
42.21driver licenses, and identification cards; amending Minnesota Statutes 2006,
42.22sections 16A.88; 161.04, subdivision 3, by adding a subdivision; 162.06; 162.07,
42.23subdivision 1, by adding subdivisions; 163.051; 168.011, subdivision 6; 168.013,
42.24subdivisions 1, 1a; 168.017, subdivision 3; 168.12, subdivision 5; 168A.29,
42.25subdivision 1; 171.02, subdivision 3; 171.06, subdivision 2; 171.07, subdivisions
42.263a, 11; 171.20, subdivision 4; 296A.07, subdivision 3; 296A.08, subdivision 2;
42.27297A.815, by adding a subdivision; 297A.94; 297B.09, subdivision 1; 299D.09;
42.28473.388, subdivision 4; 473.446, subdivision 1; proposing coding for new law in
42.29Minnesota Statutes, chapters 296A; 297A; repealing Minnesota Statutes 2006,
42.30section 174.32."