1.1    .................... moves to amend H. F. No. 1713 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1
1.4HOUSEHOLD GOODS MOVERS

1.5    Section 1. Minnesota Statutes 2006, section 221.011, is amended by adding a
1.6subdivision to read:
1.7    Subd. 50. Household goods mover. (a) "Household goods mover" means a motor
1.8carrier who engages in for-hire transportation service for moving household goods and
1.9offers the services of:
1.10    (1) binding and nonbinding estimates;
1.11    (2) inventorying;
1.12    (3) protective packing and unpacking of individual items at a personal residence; or
1.13    (4) loading and unloading at a personal residence.
1.14    (b) Household goods mover does not include a carrier transporting property from a
1.15factory or store to a personal residence.

1.16    Sec. 2. [221.0253] HOUSEHOLD GOODS MOVERS; REGISTRATION.
1.17    Subdivision 1. Definition. For purposes of this section, "registrant" means a person
1.18applying for a certificate of registration as a household goods mover under this section.
1.19    Subd. 2. Registration required. No person may engage in the for-hire
1.20transportation of household goods in Minnesota unless the person has been issued a
1.21certificate of registration by the commissioner.
1.22    Subd. 3. Registration statement. A registrant shall file a complete and accurate
1.23registration statement with the commissioner. A registration statement must be on a form
1.24provided by the commissioner and include:
1.25    (1) the registrant's name, including an assumed or fictitious name used by the
1.26registrant in doing business;
2.1    (2) the registrant's mailing address and business telephone number;
2.2    (3) the registrant's federal employer identification number, Minnesota business
2.3identification number, and the identification number, if any, assigned to the registrant by
2.4the United States Department of Transportation;
2.5    (4) the name, title, and telephone number of the individual who is principally
2.6responsible for the operation of the registrant's transportation business;
2.7    (5) the principal location from which the registrant conducts its transportation
2.8business and where the records required by this chapter will be kept;
2.9    (6) if different from clause (5), the location in Minnesota where the records required
2.10by this chapter will be available for inspection and copying by the commissioner;
2.11    (7) whether the registrant's business is a corporation, partnership, limited liability
2.12partnership, limited liability company, sole proprietorship, or other legal form;
2.13    (8) if the registrant is a foreign corporation authorized to transact business in
2.14Minnesota, the state of incorporation and the name and address of its registered agent; and
2.15    (9) a record of each initial background check as required under subdivision 4.
2.16    Subd. 4. Background check; denial of registration. (a) The registrant shall
2.17conduct, or cause to be conducted, an initial background check of any person employed by
2.18the registrant, or with whom the registrant contracts, whose duties include operating a
2.19vehicle used to transport household goods.
2.20    (b) Sections 299C.67; 299C.68, subdivisions 2 to 5; and 299C.71 apply to
2.21background checks conducted under this subdivision. For purposes of this subdivision,
2.22when used in sections 299C.67, 299C.68, and 299C.71, the term "owner" refers to the
2.23registrant and the term "manager" refers to a driver.
2.24    (c) The commissioner may deny registration to any registrant who employs a driver
2.25that the background check response shows has been convicted of a background check
2.26crime, as defined in section 299C.67, subdivision 2, paragraph (a) or (b).
2.27    (d) The registrant shall conduct, or cause to be conducted, a subsequent background
2.28check every three years. The registrant shall keep a record, identified by the employee's
2.29name, of a background check conducted under this section. A record must be made
2.30available to the commissioner upon request.
2.31    (e) This subdivision does not apply to a driver who holds a valid driver's license
2.32with a school bus endorsement.
2.33    Subd. 5. Signature required. A corporate officer, general partner, or sole proprietor
2.34must sign the registration statement and the vehicle and insurance statement.
3.1    Subd. 6. Fee. An initial fee of $200 must be paid at the time of filing the registration
3.2statement. It must be paid into the state treasury and credited to the trunk highway fund.
3.3    Subd. 7. Certificate of registration; issuance. (a) The commissioner shall issue a
3.4certificate of registration to a registrant who does not have an unsatisfactory safety rating
3.5and has met the requirements of this section.
3.6    (b) A certificate of registration must be numbered and bear an effective date.
3.7    (c) A certificate of registration must be kept at the registrant's principal place of
3.8business.
3.9    Subd. 8. Compliance with other laws. A household goods mover shall comply
3.10with sections 169.781 and 221.141.
3.11    Subd. 9. Duration. A certificate of registration is valid for for-hire transportation
3.12of household goods throughout Minnesota, is not assignable or transferable, and is valid
3.13until it is suspended, revoked, or canceled.
3.14    Subd. 10. Obligation to keep information current. A registrant shall notify the
3.15commissioner in writing of any change in the information described in subdivision 3.
3.16    Subd. 11. Suspension and cancellation of registration. The commissioner
3.17shall suspend or cancel, following the procedures for suspension or cancellation in
3.18section 221.185, the registration of a household goods mover who fails to file with the
3.19commissioner or maintain the insurance or bond required under section 221.141. A person
3.20may not engage in the for-hire transportation of household goods in Minnesota while the
3.21person's registration is under suspension or cancellation under this subdivision.

3.22    Sec. 3. [221.027] HOUSEHOLD GOODS MOVERS; CONSUMER
3.23PROTECTION.
3.24    Subdivision 1. Arbitration, price estimates, relinquishment of possession to
3.25consumers. Code of Federal Regulations, title 49, sections 375.209; 375.211; 375.401
3.26through 375.409; 375.503; 375.505; 376.603; and 375.703 are incorporated by reference
3.27and apply to household goods movers.
3.28    Subd. 2. Investigation. The attorney general shall investigate violations of laws
3.29by household goods movers, including but not limited to violations relating to operation
3.30without registration, misrepresentations, deceptive trade practices, theft, the provisions of
3.31subdivision 1, and other crimes.
3.32    Subd. 3. Contact information. A household goods mover shall include contact
3.33information for the Department of Transportation and the attorney general on all bills of
3.34lading and estimates required under subdivision 1.

4.1    Sec. 4. [221.028] HOUSEHOLD GOODS MOVERS; EXPIRATION AND
4.2CONVERSION OF PERMITS.
4.3    Subdivision 1. Expiration of permits. Any permit issued by the commissioner
4.4before August 1, 2007, that authorizes for-hire transportation of household goods in
4.5Minnesota, is only valid through February 29, 2008.
4.6    Subd. 2. Conversion to registration. A holder of a permit issued by the
4.7commissioner before August 1, 2007, that authorizes for-hire transportation of household
4.8goods in Minnesota, who wishes to continue as a household goods mover, shall meet the
4.9requirements of section 221.0253, before March 1, 2008. The commissioner shall not
4.10require a criminal background check under section 221.0253, subdivision 4, and shall not
4.11charge a registration fee under section 221.0253, subdivision 6.

4.12ARTICLE 2
4.13REPEAL OF OBSOLETE PERMITS AND CONFORMING CHANGES

4.14    Section 1. Minnesota Statutes 2006, section 168.013, subdivision 1e, is amended to
4.15read:
4.16    Subd. 1e. Truck; tractor; combination; exceptions. (a) On trucks and tractors
4.17except those in this chapter defined as farm trucks, on truck-tractor and semitrailer
4.18combinations except those defined as farm combinations, and on commercial zone
4.19vehicles, the tax based on total gross weight shall be graduated according to the Minnesota
4.20base rate schedule prescribed in this subdivision, but in no event less than $120.
4.21Minnesota Base Rate Schedule
4.22Scheduled taxes include five percent
4.23surtax provided for in subdivision 14
4.24
TOTAL GROSS WEIGHT
4.25
IN POUNDS
TAX
4.26
A
0
-
1,500
$ 15
4.27
B
1,501
-
3,000
20
4.28
C
3,001
-
4,500
25
4.29
D
4,501
-
6,000
35
4.30
E
6,001
-
9,000
45
4.31
F
9,001
-
12,000
70
4.32
G
12,001
-
15,000
105
4.33
H
15,001
-
18,000
145
4.34
I
18,001
-
21,000
190
4.35
J
21,001
-
26,000
270
4.36
K
26,001
-
33,000
360
4.37
L
33,001
-
39,000
475
4.38
M
39,001
-
45,000
595
5.1
N
45,001
-
51,000
715
5.2
O
51,001
-
57,000
865
5.3
P
57,001
-
63,000
1015
5.4
Q
63,001
-
69,000
1185
5.5
R
69,001
-
73,280
1325
5.6
S
73,281
-
78,000
1595
5.7
T
78,001
-
81,000
1760
5.8    (b) For purposes of the Minnesota base rate schedule, for vehicles with six or more
5.9axles in the "S" and "T" categories, the base rates are $1,520 and $1,620 respectively.
5.10    (c) For each vehicle with a gross weight in excess of 81,000 pounds an additional
5.11tax of $50 is imposed for each ton or fraction thereof in excess of 81,000 pounds, subject
5.12to subdivision 12.
5.13    (d) Truck-tractors except those herein defined as farm and commercial zone vehicles
5.14shall be taxed in accord with the foregoing gross weight tax schedule on the basis of the
5.15combined gross weight of the truck-tractor and any semitrailer or semitrailers which the
5.16applicant proposes to combine with the truck-tractor.
5.17    (e) Commercial zone trucks include only trucks, truck-tractors, and semitrailer
5.18combinations which are:
5.19    (1) used by an authorized local cartage carrier operating under a permit issued
5.20under section 221.296 and whose gross transportation revenue consists of at least 60
5.21percent obtained solely from local cartage carriage, and are operated solely within an area
5.22composed of two contiguous cities of the first class and municipalities contiguous thereto
5.23as defined by section 221.011, subdivision 17; or
5.24    (2) operated by an interstate carrier registered under section 221.60, or by an
5.25authorized local cartage carrier or other carrier receiving operating authority under chapter
5.26221, and operated solely within a zone exempt from regulation pursuant to United States
5.27Code, title 49, section 13506.
5.28    (f) The license plates issued for commercial zone vehicles shall be plainly marked. A
5.29person operating a commercial zone vehicle outside the zone or area in which its operation
5.30is authorized is guilty of a misdemeanor and, in addition to the misdemeanor penalty
5.31therefor, the registrar shall have revoke the registration of the vehicle as a commercial
5.32zone vehicle revoked by the registrar and shall be required to reregister require that the
5.33vehicle be reregistered at 100 percent of the full annual tax prescribed in the Minnesota
5.34base rate schedule, and no part of this tax shall may be refunded during the balance of
5.35the registration year.
5.36    (g) On commercial zone trucks the tax shall be based on the total gross weight of the
5.37vehicle and during each of the first eight years of vehicle life shall be is 75 percent of the
6.1Minnesota base rate schedule. During the ninth and succeeding years of vehicle life, the
6.2tax shall be is 50 percent of the Minnesota base rate schedule.
6.3    (h) On trucks, truck-tractors, and semitrailer combinations, except those defined
6.4as farm trucks and farm combinations, and except for those commercial zone vehicles
6.5specifically provided for in this subdivision, the tax for each of the first eight years of
6.6vehicle life shall be is 100 percent of the tax imposed in the Minnesota base rate schedule,
6.7and during the ninth and succeeding years of vehicle life, the tax shall be is 75 percent
6.8of the Minnesota base rate prescribed by this subdivision.
6.9    (i) For the purpose of registration, trailers coupled with a truck-tractor, semitrailer
6.10combination are semitrailers.

6.11    Sec. 2. Minnesota Statutes 2006, section 174.64, subdivision 2, is amended to read:
6.12    Subd. 2. Specific functions and powers. (a) To the extent allowed under federal
6.13law or regulation, the commissioner shall further hold hearings and issue orders in cases
6.14brought on the commissioner's own motion or by a third party in the following areas:
6.15    (1) adequacy of services that carriers are providing to the public, including the
6.16continuation, termination, or modification of services and facilities;
6.17    (2) reasonableness of tariffs of rates, fares, and charges, or a part or classification
6.18of a tariff; and
6.19    (3) issuing permits.
6.20    (b) For purposes of paragraph (a), clause (2), the commissioner may authorize
6.21common carriers by rail and motor carriers for hire to file tariffs of rates, fares, and
6.22charges individually or by group. Carriers participating in group ratemaking have the free
6.23and unrestrained right to take independent action either before or after a determination
6.24arrived at through that procedure.

6.25    Sec. 3. Minnesota Statutes 2006, section 174.64, subdivision 4, is amended to read:
6.26    Subd. 4. Petition, notice, and hearing. (a) With respect to those matters within
6.27the commissioner's jurisdiction, the commissioner shall receive, hear, and determine all
6.28petitions filed with the commissioner in accordance with the procedures established by law
6.29and may hold hearings and make determinations upon the commissioner's own motion to
6.30the same extent, and in every instance, in which the commissioner may do so upon petition.
6.31    (b) Upon receiving a petition filed pursuant to section 221.121, subdivision 1, or
6.32221.151, the commissioner shall give notice of the filing of the petition to representatives
6.33of associations or other interested groups or persons who have registered their names
6.34with the commissioner for that purpose and to whomever the commissioner deems to be
6.35interested in the petition. The commissioner may grant or deny the request of the petition
6.3630 days after notice of the filing has been fully given.
7.1    (c) If the commissioner receives a written objection and notice of intent to appear at
7.2a hearing to object to the petition from any person within 20 days of the notice having been
7.3fully given, the request of the petition must be granted or denied only after a contested
7.4case hearing has been conducted on the petition, unless the objection is withdrawn before
7.5the hearing. The commissioner may elect to hold a contested case hearing if no objections
7.6to the petition are received. If a timely objection is not received, or if received and
7.7withdrawn, and the request of the petition is denied without hearing, the petitioner may
7.8request within 30 days of receiving the notice of denial, and must be granted, a contested
7.9case hearing on the petition.

7.10    Sec. 4. Minnesota Statutes 2006, section 174.66, is amended to read:
7.11174.66 CONTINUATION OF CARRIER RULES.
7.12    (a) Orders and directives in force, issued, or promulgated under authority of chapters
7.13174A, 216A, 218, 219, 221, and 222 remain and continue in force and effect until repealed,
7.14modified, or superseded by duly authorized orders or directives of the commissioner of
7.15transportation. To the extent allowed under federal law or regulation, rules adopted under
7.16authority of the following sections are transferred to the commissioner of transportation
7.17and continue in force and effect until repealed, modified, or superseded by duly authorized
7.18rules of the commissioner:
7.19    (1) section 218.041 except rules related to the form and manner of filing railroad
7.20rates, railroad accounting rules, and safety rules;
7.21    (2) section 219.40; and
7.22    (3) rules relating to rates or tariffs, or the granting, limiting, or modifying of permits
7.23or certificates of convenience and necessity under section 221.031, subdivision 1;.
7.24    (4) rules relating to the sale, assignment, pledge, or other transfer of a stock interest
7.25in a corporation holding authority to operate as a permit carrier as prescribed in section
7.26221.151, subdivision 1;
7.27    (5) rules relating to rates, charges, and practices under section 221.161, subdivision
7.284
; and
7.29    (6) rules relating to rates, tariffs, or the granting, limiting, or modifying of permits
7.30under sections 221.121 and 221.151.
7.31    (b) The commissioner shall review the transferred rules, orders, and directives and,
7.32when appropriate, develop and adopt new rules, orders, or directives.

7.33    Sec. 5. Minnesota Statutes 2006, section 221.011, subdivision 8, is amended to read:
7.34    Subd. 8. Permit. "Permit" means the license, or franchise, which may be issued to
7.35motor carriers other than regular route common carriers of passengers, class I common
8.1carriers, and petroleum carriers, and household goods movers under the provisions of this
8.2chapter, authorizing the use of the highways of Minnesota for transportation for hire.

8.3    Sec. 6. Minnesota Statutes 2006, section 221.025, is amended to read:
8.4221.025 EXEMPTIONS.
8.5    The provisions of this chapter requiring a certificate or permit to operate as a motor
8.6carrier do not apply to the intrastate transportation described below:
8.7    (1) the transportation of students to or from school or school activities in a school
8.8bus inspected and certified under section 169.451 and the transportation of children or
8.9parents to or from a Head Start facility or Head Start activity in a Head Start bus inspected
8.10and certified under section 169.451;
8.11    (2) the transportation of solid waste, as defined in section 116.06, subdivision 22,
8.12including recyclable materials and waste tires, except that the term "hazardous waste" has
8.13the meaning given it in section 221.011, subdivision 31;
8.14    (3) a commuter van as defined in section 221.011, subdivision 27;
8.15    (4) authorized emergency vehicles as defined in section 169.01, subdivision 5,
8.16including ambulances; and tow trucks equipped with proper and legal warning devices
8.17when picking up and transporting (i) disabled or wrecked motor vehicles or (ii) vehicles
8.18towed or transported under a towing order issued by a public employee authorized to
8.19issue a towing order;
8.20    (5) the transportation of grain samples under conditions prescribed by the
8.21commissioner;
8.22    (6) the delivery of agricultural lime;
8.23    (7) the transportation of dirt and sod within an area having a 50-mile radius from the
8.24home post office of the person performing the transportation;
8.25    (8) the transportation of sand, gravel, bituminous asphalt mix, concrete ready mix,
8.26concrete blocks or tile and the mortar mix to be used with the concrete blocks or tile, or
8.27crushed rock to or from the point of loading or a place of gathering within an area having a
8.2850-mile radius from that person's home post office or a 50-mile radius from the site of
8.29construction or maintenance of public roads and streets;
8.30    (9) the transportation of pulpwood, cordwood, mining timber, poles, posts, decorator
8.31evergreens, wood chips, sawdust, shavings, and bark from the place where the products
8.32are produced to the point where they are to be used or shipped;
8.33    (10) the transportation of fresh vegetables from farms to canneries or viner stations,
8.34from viner stations to canneries, or from canneries to canneries during the harvesting,
8.35canning, or packing season, or transporting sugar beets, wild rice, or rutabagas from the
9.1field of production to the first place of delivery or unloading, including a processing
9.2plant, warehouse, or railroad siding;
9.3    (11) the transportation of property or freight, other than household goods and
9.4petroleum products in bulk, entirely within the corporate limits of a city or between
9.5contiguous cities except as provided in section 221.296;
9.6    (12) the transportation of unprocessed dairy products in bulk within an area having a
9.7100-mile radius from the home post office of the person providing the transportation;
9.8    (13) the transportation of agricultural, horticultural, dairy, livestock, or other farm
9.9products within an area having a 100-mile radius from the person's home post office and
9.10the carrier may transport other commodities within the 100-mile radius if the destination
9.11of each haul is a farm;
9.12    (14) the transportation of newspapers, as defined in section 331A.01, subdivision
9.135
, telephone books, handbills, circulars, or pamphlets in a vehicle with a gross vehicle
9.14weight of 10,000 pounds or less; and
9.15    (15) transportation of potatoes from the field of production, or a storage site owned
9.16or otherwise controlled by the producer, to the first place of processing.
9.17The exemptions provided in this section apply to a person only while the person is
9.18exclusively engaged in exempt transportation.

9.19    Sec. 7. Minnesota Statutes 2006, section 221.026, is amended to read:
9.20221.026 MOTOR CARRIER OF PROPERTY; EXEMPTIONS.
9.21    Subdivision 1. Registration. No person may engage in the for-hire transportation
9.22of property, other than household goods, in Minnesota unless the person has filed a
9.23registration statement with the commissioner on a form the commissioner prescribes.
9.24    Subd. 2. Exemptions from requirements. Notwithstanding any other law, a motor
9.25carrier of property is exempt from sections 221.021; 221.072; 221.121; 221.122; 221.123;
9.26221.131 ; 221.132; 221.151; 221.161; 221.172, subdivisions 3 to 8; and 221.185, except as
9.27provided in subdivision 4; and 221.296. The exemptions in this subdivision do not apply
9.28to a motor carrier of property while transporting household goods.
9.29    Subd. 3. Safety regulations. A motor carrier of property is subject to those federal
9.30regulations incorporated by reference in section 221.0314, unless exempted from those
9.31regulations by section 221.031.
9.32    Subd. 4. Suspension and cancellation of registration. The commissioner
9.33shall suspend or cancel, following the procedures for suspension or cancellation in
9.34section 221.185, the registration of a motor carrier of property who fails to file with the
9.35commissioner or maintain the insurance or bond required under section 221.141. A person
10.1may not engage in the for-hire transportation of property, other than household goods,
10.2in Minnesota while the person's registration is under suspension or cancellation under
10.3this subdivision.
10.4    Subd. 5. Local regulation. Section 221.091 applies to registration statements under
10.5this section to the same extent that it applies to certificates and permits issued by the board.

10.6    Sec. 8. Minnesota Statutes 2006, section 221.031, subdivision 1, is amended to read:
10.7    Subdivision 1. Powers, duties, reports, limitations. (a) This subdivision applies to
10.8motor carriers engaged in intrastate commerce.
10.9    (b) The commissioner shall prescribe rules for the operation of motor carriers,
10.10including their facilities; accounts; leasing of vehicles and drivers; service; safe operation
10.11of vehicles; equipment, parts, and accessories; hours of service of drivers; driver
10.12qualifications; accident reporting; identification of vehicles; installation of safety devices;
10.13inspection, repair, and maintenance; and proper automatic speed regulators if, in the
10.14opinion of the commissioner, there is a need for the rules.
10.15    (c) The commissioner shall direct the repair and reconstruction or replacement of
10.16an inadequate or unsafe motor carrier vehicle or facility. The commissioner may require
10.17the construction and maintenance or furnishing of suitable and proper freight terminals,
10.18passenger depots, waiting rooms, and accommodations or shelters in a city in this state or
10.19at a point on the highway traversed which the commissioner, after investigation by the
10.20department, may deem just and proper for the protection of passengers or property.
10.21    (d) The commissioner shall require holders of household goods mover permits to file
10.22annual and other reports including annual accounts of motor carriers, schedules of rates
10.23and charges, or other data by motor carriers, regulate motor carriers in matters affecting
10.24the relationship between them and the traveling and shipping public, and prescribe other
10.25rules as may be necessary to carry out the provisions of this chapter.
10.26    (e) A motor carrier subject to paragraph (d) but having gross revenues from for-hire
10.27transportation in a calendar year of less than $200,000 may, at the discretion of the
10.28commissioner, be exempted from the filing of an annual report, if instead the motor carrier
10.29files an abbreviated annual report, in a form as may be prescribed by the commissioner,
10.30attesting that the motor carrier's gross revenues did not exceed $200,000 in the previous
10.31calendar year. Motor carrier gross revenues from for-hire transportation, for the purposes
10.32of this subdivision only, do not include gross revenues received from the operation of
10.33school buses as defined in section 169.01, subdivision 6.
10.34    (f) The commissioner shall enforce sections 169.781 to 169.783.

10.35    Sec. 9. Minnesota Statutes 2006, section 221.036, subdivision 1, is amended to read:
11.1    Subdivision 1. Order. The commissioner may issue an order requiring violations
11.2to be corrected and administratively assessing monetary penalties for a violation of (1)
11.3section 221.021; (2) section 221.033, subdivision 2b; (3) section 221.151; (4) section
11.4221.171; (5) section 221.141; or (6) (4) rules of the commissioner relating to the
11.5transportation of hazardous waste, motor carrier operations, or insurance, or tariffs and
11.6accounting. An order must be issued as provided in this section.

11.7    Sec. 10. Minnesota Statutes 2006, section 221.036, subdivision 3, is amended to read:
11.8    Subd. 3. Amount of penalty; considerations. (a) The commissioner may issue an
11.9order assessing a penalty of up to $5,000 for all violations of section 221.021; 221.141;
11.10221.151; or 221.171, or rules of the commissioner relating to motor carrier operations,
11.11insurance, or tariffs and accounting, identified under subdivision 1, except for rules of the
11.12commissioner relating to the transportation of hazardous waste or as otherwise provided
11.13under paragraph (b), identified during a single inspection, audit, or investigation.
11.14    (b) The commissioner may issue an order assessing a penalty up to a maximum of
11.15$10,000 for all violations of section 221.033, subdivision 2b, identified during a single
11.16inspection or audit.
11.17    (c) In determining the amount of a penalty, the commissioner shall consider:
11.18    (1) the willfulness of the violation;
11.19    (2) the gravity of the violation, including damage to humans, animals, air, water,
11.20land, or other natural resources of the state;
11.21    (3) the history of past violations, including the similarity of the most recent violation
11.22and the violation to be penalized, the time elapsed since the last violation, the number of
11.23previous violations, and the response of the person to the most recent violation identified;
11.24    (4) the economic benefit gained by the person by allowing or committing the
11.25violation; and
11.26    (5) other factors as justice may require, if the commissioner specifically identifies
11.27the additional factors in the commissioner's order.
11.28    (d) The commissioner shall assess a penalty of not less than $1,000 against a driver
11.29who is convicted of a violation of an out-of-service order. The commissioner shall assess
11.30a penalty of not more than $10,000 against an employer who knowingly allows or requires
11.31an employee to operate a commercial motor vehicle in violation of an out-of-service order.

11.32    Sec. 11. Minnesota Statutes 2006, section 221.131, is amended to read:
11.33221.131 CARRIER ANNUAL VEHICLE REGISTRATION; FEES,
11.34IDENTIFICATION CARD FOR MOTOR CARRIERS OF PASSENGERS.
11.35    Subdivision 1. Permit Registration renewal. Permits Certificates of registration
11.36issued under section 221.121 to a motor carrier of passengers under section 221.0252 are
12.1effective for a 12-month period. A permit certificate of registration holder must renew the
12.2permit certificate annually by registration of the vehicles operated under authority of that
12.3permit as required by subdivision 2 certificate. A permit certificate holder has one annual
12.4renewal date encompassing all of the permits certificates held by the holder.
12.5    Subd. 2. Annual vehicle registration; fee. (a) This subdivision applies only to
12.6holders of household goods mover permits and motor carriers of passengers.
12.7    (b) A permit holder or motor carrier of passengers shall pay an annual registration
12.8fee of $75 on each vehicle, including pickup and delivery vehicles, operated by the carrier
12.9under authority of the permit or certificate of registration during the 12-month period or
12.10fraction of the 12-month period. Trailers and semitrailers used by a permit certificate
12.11holder in combination with power units may not be counted as vehicles in the computation
12.12of fees under this section if the permit holder pays the fees for power units.
12.13    (c) (b) The commissioner shall furnish a distinguishing annual identification card for
12.14each vehicle or power unit for which a fee has been paid. The identification card must
12.15at all times be carried in the vehicle or power unit to which it has been assigned. An
12.16identification card may be reassigned to another vehicle or power unit upon application
12.17of the carrier and payment of a transfer fee of $10. An identification card issued under
12.18this section is valid only for the period for which the permit or certificate of registration is
12.19effective.
12.20    (d) (c) A fee of $10 is charged for the replacement of an unexpired identification
12.21card that has been lost.
12.22    (e) (d) The proceeds of the fees collected under this subdivision must be deposited in
12.23the trunk highway fund.
12.24    Subd. 2a. Vehicle identification. The permit holder must be identified on the
12.25power unit of each registered vehicle operated under the permit. Vehicles must show the
12.26name or the "doing business as" name of the permit holder operating the vehicle and
12.27the community and abbreviation of the state in which the permit holder maintains its
12.28principal office or in which the vehicle is customarily based. If the permit holder operates
12.29a leased vehicle, it may show its name and the name of the lessor on the vehicle, if the
12.30lease relationship is clearly shown. If the name of a person other than the operating permit
12.31holder appears on the vehicle, the words "operated by" must immediately precede the
12.32name of the permit holder. The name and address must be in letters that contrast sharply in
12.33color with the background, be readily legible during daylight hours from a distance of 50
12.34feet while the vehicle is stationary, and be maintained in a manner that retains the legibility
12.35of the markings. The name and address may be shown by use of a removable device if that
12.36device meets the identification and legibility requirements of this subdivision.
13.1    Subd. 3. Certificate carrier; annual vehicle registration. Certificated passenger
13.2carriers shall pay an annual registration fee of $40 for each vehicle, including pickup
13.3and delivery vehicles, operated during a calendar year. The commissioner shall issue
13.4distinguishing identification cards as provided in subdivision 2.
13.5    Subd. 4. Floater card; fee. The department may issue to carriers subject to
13.6subdivision 2 or 3 special "floater" identification cards up to a maximum of five per motor
13.7carrier. Floater cards may be freely transferred between vehicles that have evidence of
13.8being inspected under section 221.0252, subdivision 3, paragraph (a), clause (2), within
13.9the previous 12 months, or have a current Commercial Vehicle Safety Alliance decal, and
13.10that are used under short-term leases by the motor carrier. The motor carrier shall pay a
13.11fee of $100 for each floater card issued.
13.12    Subd. 5. Limitation. The provisions of this section are limited by applicable
13.13federal law.

13.14    Sec. 12. Minnesota Statutes 2006, section 221.132, is amended to read:
13.15221.132 PREPAID TEMPORARY VEHICLE IDENTIFICATION CARD.
13.16    For special or extraordinary events, the commissioner may issue a prepaid
13.17temporary vehicle identification card to a permit or certificate holder subject to section
13.18221.131, subdivision 2 or 3, for a fee of $5 per card. The card must be preprinted by the
13.19commissioner with the carrier's name, address, and permit or certificate number. The card
13.20may be used by the motor carrier to whom it is issued to identify a vehicle temporarily
13.21added to its fleet, if the vehicle has evidence of being inspected under section 221.0252,
13.22subdivision 3
, paragraph (a), clause (2), within the previous 12 months, or has a current
13.23Commercial Vehicle Safety Alliance decal. The card must be executed by the motor carrier
13.24by dating and signing the card and describing the vehicle in which it will be carried. The
13.25identification card is valid for a period of ten days from the date the motor carrier places
13.26on the card when the card is executed. The card must be used within one year from the
13.27date of issuance by the commissioner. The card may not be used if the permit or certificate
13.28is not in full force and effect. The card may not be transferred. The commissioner may not
13.29refund the cost of unused prepaid temporary vehicle identification cards.

13.30    Sec. 13. Minnesota Statutes 2006, section 221.141, subdivision 4, is amended to read:
13.31    Subd. 4. Household goods mover. A household goods mover shall maintain
13.32in effect cargo insurance or cargo bond in the amount of $50,000 and shall file with
13.33the commissioner a cargo certificate of insurance or cargo bond. A cargo certificate of
13.34insurance must conform to Form H, Uniform Motor Cargo Certificate of Insurance,
13.35described in Code of Federal Regulations, title 49, part 1023. A cargo bond must conform
14.1to Form J, described in Code of Federal Regulations, title 49, part 1023. Both Form H and
14.2Form J are incorporated by reference. The cargo certificate of insurance or cargo bond
14.3must be issued in the full and correct name of the person, corporation, or partnership to
14.4whom the household goods mover permit certificate of registration was issued and whose
14.5operations are being insured.

14.6    Sec. 14. Minnesota Statutes 2006, section 221.185, is amended to read:
14.7221.185 OPERATING AUTHORITY; SUSPENSION, CANCELLATION.
14.8    Subdivision 1. Grounds Order for suspension. Despite the provisions of section
14.9221.021 , a household goods mover permit or a motor carrier certificate of registration
14.10issued under section sections 221.0251 or, 221.0252, or 221.0253 is suspended without a
14.11hearing, by order of the commissioner, if the permit certificate holder or carrier fails to:
14.12    (1) maintain and file with the commissioner, the insurance or bond required by
14.13section 221.141 and rules adopted under that section or the carrier or permit holder fails to;
14.14    (2) pay annual vehicle registration fees or renew permits as required by section
14.15221.131 , or the permit holder or carrier fails to; or
14.16    (3) pay an administrative penalty under section 221.036.
14.17    Subd. 2. Notice of suspension. (a) Failure to file and maintain insurance, renew
14.18permits under section 221.131, or to pay annual vehicle registration fees or renew
14.19permits under section 221.131 or 221.296, or to maintain in good standing a protective
14.20agent's or private detective's license required under section 221.121, subdivision 6g, or
14.21221.153, subdivision 3, suspends a motor carrier's permit or certificate two days after the
14.22commissioner sends notice of the suspension by certified mail, return receipt requested, to
14.23the last known address of the motor carrier.
14.24    (b) In order to avoid permanent cancellation of the permit or certificate, the motor
14.25carrier must do one of the following within 45 days from the date of suspension:
14.26    (1) comply with the law by filing insurance or bond, renewing permits, or paying
14.27vehicle registration fees; or
14.28    (2) request a hearing before the commissioner regarding the failure to comply
14.29with the law.
14.30    Subd. 2a. Notice of suspension; effective date. The commissioner shall issue a
14.31notice of suspension if one of the conditions described in subdivision 1 occurs. The notice
14.32must give the reason for suspension and must be sent to the last known address of the
14.33carrier by certified mail, return receipt requested. A suspension is effective two days
14.34after a notice is mailed.
15.1    Subd. 3. Suspension rescission. If the motor carrier complies with the requirements
15.2of this chapter within 45 days after the date of suspension and pays the required fees,
15.3including a late vehicle registration fee of $5 for each vehicle registered, the commissioner
15.4shall rescind the suspension unless the carrier's registration has expired. If a registered
15.5carrier fails to comply within one year of the effective date of a suspension, the carrier's
15.6registration is canceled.
15.7    Subd. 3a. Hearing. If the motor carrier requests a hearing within 45 days after the
15.8date of suspension, the commissioner shall review the suspension and:
15.9    (1) determine that the carrier has complied with the law and rescind the suspension;
15.10    (2) for just cause, grant an extension which must not exceed 20 days; or
15.11    (3) schedule a hearing to ascertain whether the carrier has failed to comply with the
15.12law. If it is determined after the hearing that the carrier has failed to comply with the law,
15.13the commissioner shall cancel the carrier's suspended permit or certificate.
15.14    Subd. 4. Grounds for cancellation. Except as provided in subdivision 5a, failure to
15.15comply with the requirements of sections section 221.141 and 221.296 relating to bonds
15.16and insurance, 221.131 relating to permit renewal, 221.131 or 221.296 relating to annual
15.17vehicle registration or permit renewal, 221.121, subdivision 6g, or 221.153, subdivision 3,
15.18relating to protective agent or private detective licensure, or to request a hearing within 45
15.19days of the date of suspension, is deemed an abandonment of the motor carrier's permit or
15.20certificate and the permit or certificate must be canceled by the commissioner.
15.21    Subd. 5. Notice of cancellation. The commissioner shall notify the motor carrier by
15.22certified mail, return receipt requested, that the permit or certificate is canceled effective
15.23on the date of mailing the notice of cancellation.
15.24    Subd. 5a. Reinstatement after cancellation. A motor carrier whose permit or
15.25certificate is canceled for failure to comply with sections section 221.141 and 221.296
15.26relating to bonds and insurance may ask the commissioner to review the cancellation.
15.27Upon review, the commissioner shall rescind the cancellation if (1) the motor carrier
15.28presents evidence showing that before the effective date of the notice of cancellation
15.29issued under subdivision 5, the motor carrier had obtained and paid for the insurance
15.30required by sections section 221.141 and 221.296, and the rules of the commissioner, and
15.31(2) the commissioner is satisfied that the motor carrier has complied with the requirements
15.32of sections section 221.141 and 221.296 and the rules of the commissioner.
15.33    Subd. 9. New petition. If the holder of a canceled permit or certificate seeks
15.34authority to operate as a motor carrier it shall file a petition with the commissioner for a
15.35permit or certificate as provided in section 221.121 or 221.296, whichever is applicable.

16.1    Sec. 15. Minnesota Statutes 2006, section 221.221, subdivision 3, is amended to read:
16.2    Subd. 3. Delegated powers. Representatives of the department to whom authority
16.3has been delegated by the commissioner for the purpose of enforcing sections 169.781 to
16.4169.783 and 221.171 and the rules, orders, or directives of the commissioner adopted or
16.5issued under those sections, and for no other purpose, shall have the powers conferred
16.6by law upon police officers. The representatives of the department have the power to
16.7inspect records, logs, freight bills, bills of lading, or other documents, which may provide
16.8evidence to determine compliance with sections 169.781 to 169.783 and 221.171.

16.9    Sec. 16. Minnesota Statutes 2006, section 221.291, subdivision 4, is amended to read:
16.10    Subd. 4. Operating without registration or permit. A person who operates a
16.11motor carrier without first registering under section sections 221.0251 or, 221.0252, or
16.12who operates as a household goods mover without having obtained the necessary permit
16.13221.0253, is guilty of a misdemeanor, and upon conviction shall must be fined not less
16.14than the maximum fine which that may be imposed for a misdemeanor for each violation.

16.15    Sec. 17. REVISION OF RULES.
16.16    The commissioner of transportation shall repeal, amend, and adopt revisions to rules
16.17relating to household goods contained in Minnesota Rules, chapters 7800 and 7805, and
16.18may use the expedited process for adopting rules under Minnesota Statutes, section 14.389.

16.19    Sec. 18. INSTRUCTION TO REVISOR.
16.20    The revisor of statutes shall change the phrase "sections 221.011 to 221.296" to
16.21read "this chapter" where found in Minnesota Statutes, sections 221.021, subdivision
16.221; 221.022; and 221.091, subdivision 1.

16.23    Sec. 19. REPEALER.
16.24Minnesota Statutes 2006, sections 174.65; 221.011, subdivisions 24, 25, 28, 29, 38,
16.2541, 44, and 45; 221.0252, subdivision 7; 221.072; 221.111; 221.121, subdivisions 1,
16.262, 3, 4, 5, 6, 6a, 6c, 6d, 6e, 6f, and 7; 221.122; 221.123; 221.131, subdivisions 2a and
16.273; 221.141, subdivision 6; 221.151; 221.152; 221.153, subdivisions 1 and 2; 221.161;
16.28221.171; 221.172, subdivisions 3, 4, 5, 6, 7, and 8; and 221.296, subdivisions 3, 4, 5, 6,
16.297, and 8, are repealed."
16.30Amend the title accordingly