Journal of the House - 76th Day - Sunday, May 21, 2023 - Top of Page 10255

 

 

STATE OF MINNESOTA

 

 

NINETY-THIRD SESSION - 2023

 

_____________________

 

SEVENTY-SIXTH DAY

 

Saint Paul, Minnesota, Sunday, May 21, 2023

 

 

      The House of Representatives convened at 1:00 p.m. and was called to order by Dan Wolgamott, Speaker pro tempore.

 

      Prayer was offered by Stacy McClendon, Common Ground Meditation Center, Minneapolis, Minnesota.

 

      The members of the House gave the pledge of allegiance to the flag of the United States of America.

 

      The roll was called and the following members were present:

 


Acomb

Agbaje

Altendorf

Anderson, P. E.

Anderson, P. H.

Backer

Bahner

Bakeberg

Baker

Becker-Finn

Bennett

Berg

Bierman

Bliss

Brand

Burkel

Carroll

Cha

Clardy

Coulter

Curran

Daniels

Daudt

Davids

Demuth

Dotseth

Edelson

Elkins

Engen

Feist

Finke

Fischer

Fogelman

Franson

Frazier

Frederick

Freiberg

Garofalo

Gillman

Gomez

Greenman

Hansen, R.

Hanson, J.

Harder

Hassan

Heintzeman

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hornstein

Howard

Hudella

Hudson

Huot

Hussein

Igo

Jacob

Johnson

Jordan

Joy

Keeler

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Kozlowski

Koznick

Kraft

Lee, F.

Lee, K.

Liebling

Lillie

Lislegard

Long

McDonald

Mekeland

Mueller

Murphy

Myers

Nadeau

Nash

Nelson, M.

Nelson, N.

Neu Brindley

Newton

Niska

Noor

Norris

Novotny

O'Driscoll

Olson, B.

Olson, L.

O'Neill

Pelowski

Pérez-Vega

Perryman

Petersburg

Pfarr

Pinto

Pryor

Pursell

Quam

Rehm

Reyer

Richardson

Robbins

Schomacker

Schultz

Scott

Sencer-Mura

Skraba

Smith

Stephenson

Swedzinski

Tabke

Torkelson

Urdahl

Vang

West

Wiener

Wiens

Wolgamott

Xiong

Youakim

Zeleznikar

Spk. Hortman


 

      A quorum was present.

 

      Grossell, Kiel, Kresha and Moller were excused.

 

      Davis was excused until 3:50 p.m.  Witte was excused until 4:30 p.m.

 

      The Chief Clerk proceeded to read the Journal of the preceding day.  There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.


Journal of the House - 76th Day - Sunday, May 21, 2023 - Top of Page 10256

INTRODUCTION AND FIRST READING OF HOUSE BILLS

 

 

      The following House Files were introduced:

 

 

      Heintzeman introduced:

 

H. F. No. 3337, A bill for an act relating to natural resources; modifying provisions for operating all-terrain vehicles on public roads; amending Minnesota Statutes 2022, section 84.928, subdivision 1.

 

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Finance and Policy.

 

 

Freiberg introduced:

 

H. F. No. 3338, A bill for an act relating to real property; providing for certain private transfer fees; amending Minnesota Statutes 2022, section 513.73, subdivision 3.

 

The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law.

 

 

Koegel, Stephenson, Daniels, Edelson and Hassan introduced:

 

H. F. No. 3339, A bill for an act relating to insurance; requiring coverage for orthotic and prosthetic devices; authorizing rulemaking; proposing coding for new law in Minnesota Statutes, chapter 62Q.

 

The bill was read for the first time and referred to the Committee on Commerce Finance and Policy.

 

 

      Long moved that the House recess subject to the call of the Chair.  The motion prevailed.

 

 

RECESS

 

 

RECONVENED

 

      The House reconvened and was called to order by Speaker pro tempore Wolgamott.

 

 

      The following Conference Committee Report was received:

 

 

CONFERENCE COMMITTEE REPORT ON H. F. No. 2887

 

A bill for an act relating to transportation; establishing a budget for transportation; appropriating money for transportation purposes, including Department of Transportation, Department of Public Safety, and Metropolitan Council activities; modifying prior appropriations; authorizing the sale and issuance of state bonds; modifying various policy and finance provisions; establishing metropolitan region sales and use tax; requiring Metropolitan


Journal of the House - 76th Day - Sunday, May 21, 2023 - Top of Page 10257

Council to implement and enforce transit safety measures; authorizing administrative citations; establishing criminal penalties; establishing an advisory committee, a task force, and a working group; establishing pilot programs; requiring a study; requiring reports; transferring money; amending Minnesota Statutes 2022, sections 13.69, subdivision 1; 43A.17, by adding a subdivision; 151.37, subdivision 12; 161.088, subdivisions 1, 2, 4, 5, as amended, by adding subdivisions; 161.45, subdivisions 1, 2; 161.46, subdivision 2; 163.051, subdivision 1; 168.002, by adding a subdivision; 168.012, by adding a subdivision; 168.013, subdivision 1a; 168.326; 168.327, subdivisions 1, 2, 3, by adding a subdivision; 168.33, subdivision 7; 168.345, subdivision 2; 168.54, subdivision 5; 168A.29, by adding a subdivision; 169.09, subdivision 13, by adding a subdivision; 169.14, by adding a subdivision; 169.345, subdivision 2; 169.475, subdivisions 2, 3; 169.8261; 169.865, subdivision 1a; 171.01, by adding subdivisions; 171.06, subdivisions 2, 3, as amended, 7, by adding subdivisions; 171.061, subdivision 4; 171.0705, by adding a subdivision; 171.13, subdivisions 1, 1a; 171.26; 174.01, by adding a subdivision; 174.03, subdivision 1c; 174.634; 219.015, subdivision 2; 219.1651; 221.0269, by adding a subdivision; 222.37, subdivision 1; 256.9752, by adding a subdivision; 270C.15; 297A.94; 297A.99, subdivision 1; 297A.993, by adding a subdivision; 297B.02, subdivision 1; 297B.03; 297B.09; 299A.01, by adding a subdivision; 299A.705, subdivision 1; 299D.03, subdivision 5; 299F.60, subdivision 1; 299J.16, subdivision 1; 357.021, subdivisions 6, 7; 473.146, subdivision 1, by adding a subdivision; 473.39, by adding a subdivision; 473.859, by adding a subdivision; 609.855, subdivisions 1, 3, 7, by adding a subdivision; Laws 2021, First Special Session chapter 5, article 1, sections 2, subdivision 2; 4, subdivision 4; article 4, section 143; Laws 2022, chapter 39, section 2; proposing coding for new law in Minnesota Statutes, chapters 4; 160; 161; 168; 169; 171; 174; 297A; 473; proposing coding for new law as Minnesota Statutes, chapter 168E; repealing Minnesota Statutes 2022, sections 168.121, subdivision 5; 168.1282, subdivision 5; 168.1294, subdivision 5; 168.1299, subdivision 4; 168.345, subdivision 1; 299A.705, subdivision 2; 360.915, subdivision 5.

 

May 20, 2023

The Honorable Melissa Hortman

Speaker of the House of Representatives

 

The Honorable Bobby Joe Champion

President of the Senate

 

We, the undersigned conferees for H. F. No. 2887 report that we have agreed upon the items in dispute and recommend as follows:

 

That the Senate recede from its amendments and that H. F. No. 2887 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

APPROPRIATIONS

 

      Section 1.  TRANSPORTATION APPROPRIATIONS. 

 

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article.  The appropriations are from the trunk highway fund, or another named fund, and are available for the fiscal years indicated for each purpose.  Amounts for "Total Appropriation" and sums shown in the corresponding columns marked "Appropriations by Fund" are summary only and do not have legal effect.  Unless specified otherwise, the amounts in fiscal year 2025 under "Appropriations by Fund" show the base within the meaning of Minnesota Statutes, section 16A.11, subdivision 3, by fund.  The figures "2024" and "2025" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2024, or June 30, 2025, respectively.  "Each year" is each of fiscal years 2024 and 2025.  "The biennium" is fiscal years 2024 and 2025.  "C.S.A.H." is the county state-aid highway fund.  "M.S.A.S." is the municipal state-aid street fund. 


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"H.U.T.D." is the highway user tax distribution fund.  "Staff" means those employees who are identified in any of the following roles for the legislative committees:  committee administrator, committee legislative assistant, caucus research, fiscal analysis, counsel, or nonpartisan research.

 

 

 

 

APPROPRIATIONS

 

 

 

Available for the Year

 

 

 

Ending June 30

 

 

 

2024

2025

 

      Sec. 2.  DEPARTMENT OF TRANSPORTATION

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$4,174,897,000

 

$3,672,723,000

 

Appropriations by Fund

 

 

2024

 

2025

General

634,359,000

46,450,000

Airports

40,368,000

25,368,000

C.S.A.H. 

917,782,000

991,615,000

M.S.A.S. 

236,360,000

251,748,000

Trunk Highway

2,346,028,000

2,357,542,000

 

The appropriations in this section are to the commissioner of transportation.

 

The amounts that may be spent for each purpose are specified in the following subdivisions.

 

      Subd. 2.  Multimodal Systems

 

 

 

 

 

(a) Aeronautics

 

(1) Airport Development and Assistance

 

69,598,000

 

18,598,000

 

Appropriations by Fund

 

 

2024

 

2025

General

36,000,000

-0-

Airports

33,598,000

18,598,000

 

The appropriation from the state airports fund must be spent according to Minnesota Statutes, section 360.305, subdivision 4.

 

$36,000,000 in fiscal year 2024 is from the general fund for matches to federal aid and state investments related to airport infrastructure projects.  This is a onetime appropriation and is available until June 30, 2027.


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$15,000,000 in fiscal year 2024 is from the state airports fund for system maintenance of critical airport safety systems, equipment, and essential airfield technology.

 

Notwithstanding Minnesota Statutes, section 16A.28, subdivision 6, the appropriation from the state airports fund is available for five years after the year of the appropriation.  If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

 

If the commissioner of transportation determines that a balance remains in the state airports fund following the appropriations made in this article and that the appropriations made are insufficient for advancing airport development and assistance projects, an amount necessary to advance the projects, not to exceed the balance in the state airports fund, is appropriated in each year to the commissioner and must be spent according to Minnesota Statutes, section 360.305, subdivision 4.  Within two weeks of a determination under this contingent appropriation, the commissioner of transportation must notify the commissioner of management and budget and the chairs, ranking minority members, and staff of the legislative committees with jurisdiction over transportation finance concerning the funds appropriated.  Funds appropriated under this contingent appropriation do not adjust the base for fiscal years 2026 and 2027.

 

(2) Aviation Support Services

 

15,397,000

 

8,431,000

 

Appropriations by Fund

 

 

2024

 

2025

General

8,707,000

1,741,000

Airports

6,690,000

6,690,000

 

$7,000,000 in fiscal year 2024 is from the general fund to purchase two utility aircraft for the Department of Transportation. 

 

(3) Civil Air Patrol

 

80,000

 

80,000

 

This appropriation is from the state airports fund for the Civil Air Patrol.

 

(b) Transit and Active Transportation

 

58,478,000

 

18,374,000

 

This appropriation is from the general fund.

 

$200,000 in fiscal year 2024 and $50,000 in fiscal year 2025 are for a grant to the city of Rochester to implement demand response transit service using electric transit vehicles.  The money is available for mobile software application development; vehicles and equipment, including accessible vehicles; associated charging infrastructure; and capital and operating costs.


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$40,000,000 in fiscal year 2024 is for matches to federal aid and state investments related to transit and active transportation projects.  This is a onetime appropriation and is available until June 30, 2027.

 

(c) Safe Routes to School

 

15,297,000

 

10,500,000

 

This appropriation is from the general fund for the safe routes to school program under Minnesota Statutes, section 174.40. 

 

If the appropriation for either year is insufficient, the appropriation for the other year is available for it.  The appropriations in each year are available until June 30, 2027.

 

The base for this appropriation is $1,500,000 in each of fiscal years 2026 and 2027.

 

(d) Passenger Rail

 

197,521,000

 

4,226,000

 

This appropriation is from the general fund for passenger rail activities under Minnesota Statutes, sections 174.632 to 174.636.

 

$194,700,000 in fiscal year 2024 is for capital improvements and betterments for the Minneapolis-Duluth Northern Lights Express intercity passenger rail project, including preliminary engineering, design, engineering, environmental analysis and mitigation, acquisition of land and right-of-way, equipment and rolling stock, and construction.  From this appropriation, the amount necessary is for:  (1) Coon Rapids station improvements to establish a joint station that provides for Amtrak train service on the Empire Builder line between Chicago and Seattle; and (2) acquisition of equipment and rolling stock for purposes of participation in the Midwest fleet pool to provide for service on Northern Lights Express and expanded Amtrak train service between Minneapolis and St. Paul and Chicago.  The commissioner of transportation must not approve additional stops or stations beyond those included in the Federal Railroad Administration's January 2018 Finding of No Significant Impact and Section 4(f) Determination if the commissioner determines that the resulting speed reduction would negatively impact total ridership.  This appropriation is onetime and is available until June 30, 2028.

 

$1,833,000 in fiscal year 2024 and $3,238,000 in fiscal year 2025 are for a match to federal aid for capital and operating costs for expanded Amtrak train service between Minneapolis and St. Paul and Chicago.

 

The base from the general fund is $5,742,000 in each of fiscal years 2026 and 2027.


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(e) Freight

 

14,650,000

 

9,066,000

 

Appropriations by Fund

 

 

2024

 

2025

General

8,283,000

2,400,000

Trunk Highway

6,367,000

6,666,000

 

$5,000,000 in fiscal year 2024 is from the general fund for matching federal aid grants for improvements, engineering, and administrative costs for the Stone Arch Bridge in Minneapolis.  This is a onetime appropriation and is available until June 30, 2027.

 

$1,000,000 in each year is from the general fund for staff, operating costs, and maintenance related to weight and safety enforcement systems.

 

$974,000 in fiscal year 2024 is from the general fund for procurement costs of a statewide freight network optimization tool under Laws 2021, First Special Session chapter 5, article 4, section 133.  This is a onetime appropriation and is available until June 30, 2025.

 

      Subd. 3.  State Roads

 

 

 

 

 

(a) Operations and Maintenance

 

414,220,000

 

425,341,000

 

Appropriations by Fund

 

 

2024

 

2025

General

2,000,000

-0-

Trunk Highway

412,220,000

425,341,000

 

$1,000,000 in fiscal year 2024 is from the general fund for the highways for habitat program under Minnesota Statutes, section 160.2325.

 

$248,000 in each year is from the trunk highway fund for living snow fence implementation and maintenance activities.

 

$1,000,000 in fiscal year 2024 is from the general fund for safe road zones under Minnesota Statutes, section 169.065, including development and delivery of public awareness and education campaigns about safe road zones.

 

(b) Program Planning and Delivery

 

 

 

 

 

(1) Planning and Research

 

32,679,000

 

33,465,000

 

The commissioner may use any balance remaining in this appropriation for program delivery under clause (2).


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$130,000 in each year is available for administrative costs of the targeted group business program.

 

$266,000 in each year is available for grants to metropolitan planning organizations outside the seven-county metropolitan area.

 

$900,000 in each year is available for grants for transportation studies outside the metropolitan area to identify critical concerns, problems, and issues.  These grants are available:  (i) to regional development commissions; (ii) in regions where no regional development commission is functioning, to joint powers boards established under agreement of two or more political subdivisions in the region to exercise the planning functions of a regional development commission; and (iii) in regions where no regional development commission or joint powers board is functioning, to the Department of Transportation district office for that region.

 

(2) Program Delivery

 

274,451,000

 

273,985,000

 

Appropriations by Fund

 

 

2024

 

2025

General

2,250,000

2,000,000

Trunk Highway

272,201,000

271,985,000

 

This appropriation includes use of consultants to support development and management of projects.

 

$10,000,000 in fiscal year 2024 is from the trunk highway fund for roadway design and related improvements that reduce speeds and eliminate intersection interactions on rural high-risk roadways.  The commissioner must identify roadways based on crash information and in consultation with the Advisory Council on Traffic Safety under Minnesota Statutes, section 4.076, and local traffic safety partners.  This is a onetime appropriation and is available until June 30, 2026.

 

$2,000,000 in each year is from the general fund for implementation of climate-related programs as provided under the federal Infrastructure Investment and Jobs Act, Public Law 117-58.

 

$1,193,000 in fiscal year 2024 is from the trunk highway fund for costs related to the property conveyance to the Upper Sioux Community of state-owned land within the boundaries of Upper Sioux Agency State Park, including fee purchase, property purchase, appraisals, and road and bridge demolition and related engineering.


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$250,000 in fiscal year 2024 is from the general fund for costs related to the Clean Transportation Fuel Standard Working Group established under article 4, section 124.

 

$1,000,000 in each year is available from the trunk highway fund for management of contaminated and regulated material on property owned by the Department of Transportation, including mitigation of property conveyances, facility acquisition or expansion, chemical release at maintenance facilities, and spills on the trunk highway system where there is no known responsible party.  If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

 

(c) State Road Construction

 

1,207,013,000

 

1,174,045,000

 

Appropriations by Fund

 

 

2024

 

2025

General

1,800,000

-0-

Trunk Highway

1,205,213,000

1,174,045,000

 

This appropriation is for the actual construction, reconstruction, and improvement of trunk highways, including design-build contracts, internal department costs associated with delivering the construction program, consultant usage to support these activities, and the cost of actual payments to landowners for lands acquired for highway rights-of-way, payment to lessees, interest subsidies, and relocation expenses.

 

This appropriation includes federal highway aid.  The commissioner of transportation must notify the chairs, ranking minority members, and staff of the legislative committees with jurisdiction over transportation finance of any significant events that cause the estimates of federal aid to change.

 

$1,500,000 in fiscal year 2024 is from the general fund for living snow fence implementation, including:  acquiring and planting trees, shrubs, native grasses, and wildflowers that are climate adaptive to Minnesota; improvements; contracts; easements; rental agreements; and program delivery.

 

$300,000 in fiscal year 2024 is from the general fund for additions and modifications to work zone design or layout to reduce vehicle speeds in a work zone.  This appropriation is available following a determination by the commissioner that the initial work zone design or layout insufficiently provides for reduced vehicle speeds.


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The commissioner may expend up to one-half of one percent of the federal appropriations under this paragraph as grants to opportunity industrialization centers and other nonprofit job training centers for job training programs related to highway construction.

 

The commissioner may transfer up to $15,000,000 in each year to the transportation revolving loan fund.

 

The commissioner may receive money covering other shares of the cost of partnership projects.  These receipts are appropriated to the commissioner for these projects.

 

The base from the trunk highway fund is $1,161,813,000 in each of fiscal years 2026 and 2027.

 

(d) Corridors of Commerce

 

25,000,000

 

25,000,000

 

This appropriation is for the corridors of commerce program under Minnesota Statutes, section 161.088.  The commissioner may use up to 17 percent of the amount in each year for program delivery.

 

(e) Highway Debt Service

 

268,336,000

 

291,394,000

 

$265,336,000 in fiscal year 2024 and $288,394,000 in fiscal year 2025 are for transfer to the state bond fund.  If this appropriation is insufficient to make all transfers required in the year for which it is made, the commissioner of management and budget must transfer the deficiency amount as provided under Minnesota Statutes, section 16A.641, and notify the chairs, ranking minority members, and staff of the legislative committees with jurisdiction over transportation finance and the chairs of the senate Finance Committee and the house of representatives Ways and Means Committee of the amount of the deficiency.  Any excess appropriation cancels to the trunk highway fund.

 

(f) Statewide Radio Communications

 

8,653,000

 

6,907,000

 

Appropriations by Fund

 

 

2024

 

2025

General

2,003,000

3,000

Trunk Highway

6,650,000

6,904,000

 

$3,000 in each year is from the general fund to equip and operate the Roosevelt signal tower for Lake of the Woods weather broadcasting.

 

$2,000,000 in fiscal year 2024 is from the general fund for Allied Radio Matrix for Emergency Response (ARMER) tower building improvements and replacement.


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         Subd. 4.  Local Roads

 

 

 

 

 

(a) County State-Aid Highways

 

917,782,000

 

991,615,000

 

This appropriation is from the county state-aid highway fund under Minnesota Statutes, sections 161.081, 174.49, and 297A.815, subdivision 3, and chapter 162, and is available until June 30, 2033.

 

If the commissioner of transportation determines that a balance remains in the county state-aid highway fund following the appropriations and transfers made in this paragraph and that the appropriations made are insufficient for advancing county state-aid highway projects, an amount necessary to advance the projects, not to exceed the balance in the county state-aid highway fund, is appropriated in each year to the commissioner.  Within two weeks of a determination under this contingent appropriation, the commissioner of transportation must notify the commissioner of management and budget and the chairs, ranking minority members, and staff of the legislative committees with jurisdiction over transportation finance concerning funds appropriated.  The governor must identify in the next budget submission to the legislature under Minnesota Statutes, section 16A.11, any amount that is appropriated under this paragraph.

 

(b) Municipal State-Aid Streets

 

236,360,000

 

251,748,000

 

This appropriation is from the municipal state-aid street fund under Minnesota Statutes, chapter 162, and is available until June 30, 2033.

 

If the commissioner of transportation determines that a balance remains in the municipal state-aid street fund following the appropriations and transfers made in this paragraph and that the appropriations made are insufficient for advancing municipal state‑aid street projects, an amount necessary to advance the projects, not to exceed the balance in the municipal state-aid street fund, is appropriated in each year to the commissioner.  Within two weeks of a determination under this contingent appropriation, the commissioner of transportation must notify the commissioner of management and budget and the chairs, ranking minority members, and staff of the legislative committees with jurisdiction over transportation finance concerning funds appropriated.  The governor must identify in the next budget submission to the legislature under Minnesota Statutes, section 16A.11, any amount that is appropriated under this paragraph.

 

(c) Other Local Roads

 

 

 

 

 

(1) Local Bridges

 

18,013,000

 

-0-

 

This appropriation is from the general fund to replace or rehabilitate local deficient bridges under Minnesota Statutes, section 174.50.  This is a onetime appropriation and is available until June 30, 2027.


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(2) Local Road Improvement

 

18,013,000

 

-0-

 

This appropriation is from the general fund for construction and reconstruction of local roads under Minnesota Statutes, section 174.52.  This is a onetime appropriation and is available until June 30, 2027.

 

(3) Local Transportation Disaster Support

 

4,300,000

 

1,000,000

 

This appropriation is from the general fund to provide a cost-share for federal assistance from the Federal Highway Administration for the emergency relief program under United States Code, title 23, section 125.  Of the appropriation in fiscal year 2024, $3,300,000 is onetime and is available until June 30, 2027.

 

(4) Metropolitan Counties

 

20,000,000

 

-0-

 

This appropriation is from the general fund for distribution to metropolitan counties as provided under Minnesota Statutes, section 174.49, subdivision 5, for use in conformance with the requirements under Minnesota Statutes, section 174.49, subdivision 6.

 

      Subd. 5.  Agency Management

 

 

 

 

 

(a) Agency Services

 

317,666,000

 

87,228,000

 

Appropriations by Fund

 

 

2024

 

2025

General

241,639,000

6,151,000

Trunk Highway

76,027,000

81,077,000

 

$216,400,000 in fiscal year 2024 is from the general fund for Infrastructure Investment and Jobs Act (IIJA) discretionary matches under article 4, section 111.  This is a onetime appropriation and is available until June 30, 2027.

 

$13,790,000 in fiscal year 2024 and $190,000 in fiscal year 2025 are from the general fund for matching federal aid, related state investments, and staff costs for the electric vehicle infrastructure program under Minnesota Statutes, section 174.47.  Of this appropriation, $13,600,000 in fiscal year 2024 is onetime and is available until June 30, 2027.

 

$900,000 in each year is from the general fund for the purpose of establishing a Tribal affairs workforce training program related to the construction industry.


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$2,000,000 in fiscal year 2024 is from the general fund for federal transportation grants technical assistance under article 4, section 110.  This is a onetime appropriation and is available until June 30, 2027. 

 

$7,000,000 in fiscal year 2024 and $4,000,000 in fiscal year 2025 are from the general fund for information technology projects and implementation.

 

$500,000 in fiscal year 2024 is from the general fund for grants to nonprofit organizations or carsharing operators to support the growth of carsharing in disadvantaged communities through programs, marketing, and community engagement.  A grant recipient may use grant proceeds for capital and operational costs of a program.  Eligible grant recipients must be based in Minnesota and be either a nonprofit organization or carsharing operator, with a preference given to nonprofit carsharing operators.  Transportation management organizations are not eligible to receive grants under this paragraph.

 

(b) Buildings

 

40,790,000

 

41,120,000

 

Appropriations by Fund

 

 

2024

 

2025

General

55,000

55,000

Trunk Highway

40,735,000

41,065,000

 

Any money appropriated to the commissioner of transportation for building construction for any fiscal year before fiscal year 2024 is available to the commissioner during the biennium to the extent that the commissioner spends the money on the building construction projects for which the money was originally encumbered during the fiscal year for which it was appropriated.  If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

 

The base from the general fund is $0 in each of fiscal years 2026 and 2027.

 

(c) Tort Claims

 

600,000

 

600,000

 

If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

 

      Subd. 6.  Transfers; General Authority

 

 

 

 

 

(a) With the approval of the commissioner of management and budget, the commissioner of transportation may transfer unencumbered balances among the appropriations from the trunk


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highway fund and the state airports fund made in this section.  Transfers under this paragraph must not be made:  (1) between funds; (2) from the appropriations for state road construction or debt service; or (3) from the appropriations for operations and maintenance or program delivery, except for a transfer to state road construction or debt service.

 

(b) The commissioner of transportation must immediately report transfers under paragraph (a) to the chairs, ranking minority members, and staff of the legislative committees with jurisdiction over transportation finance.  The authority for the commissioner of transportation to make transfers under Minnesota Statutes, section 16A.285, is superseded by the authority and requirements under this subdivision.

 

      Subd. 7.  Transfers; Flexible Highway Account

 

 

 

 

 

The commissioner of transportation must transfer from the flexible highway account in the county state-aid highway fund:

 

(1) $1,850,000 in fiscal year 2024 to the trunk highway fund;

 

(2) $5,000,000 in fiscal year 2024 to the municipal turnback account in the municipal state-aid street fund; and

 

(3) the remainder in each year to the county turnback account in the county state-aid highway fund.

 

The money transferred under this subdivision is for highway turnback purposes as provided under Minnesota Statutes, section 161.081, subdivision 3.

 

      Subd. 8.  Contingent Appropriations

 

 

 

 

 

The commissioner of transportation, with the approval of the governor and the written approval of at least five members of a group consisting of the members of the Legislative Advisory Commission under Minnesota Statutes, section 3.30, and the ranking minority members of the legislative committees with jurisdiction over transportation finance, may transfer all or part of the unappropriated balance in the trunk highway fund to an appropriation:  (1) for trunk highway design, construction, or inspection in order to take advantage of an unanticipated receipt of income to the trunk highway fund or to take advantage of federal advanced construction funding; (2) for trunk highway maintenance in order to meet an emergency; or (3) to pay tort or environmental claims.  Nothing in this subdivision authorizes the commissioner to increase the use of federal advanced construction funding beyond amounts specifically authorized.  Any transfer as a result of the use of federal advanced construction funding must include an analysis of the effects on the long-term trunk highway fund balance.  The amount transferred is appropriated for the purpose of the account to which it is transferred.


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         Sec. 3.  METROPOLITAN COUNCIL

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$141,630,000

 

$88,630,000

 

The appropriations in this section are from the general fund to the Metropolitan Council.

 

The amounts that may be spent for each purpose are specified in the following subdivisions.

 

      Subd. 2.  Transit System Operations

 

85,654,000

 

32,654,000

 

This appropriation is for transit system operations under Minnesota Statutes, sections 473.371 to 473.449.

 

$50,000,000 in fiscal year 2024 is for a grant to Hennepin County for the Blue Line light rail transit extension project, including but not limited to predesign, design, engineering, environmental analysis and mitigation, right-of-way acquisition, construction, and acquisition of rolling stock.  Of this amount, $40,000,000 is available only upon entering a full funding grant agreement with the Federal Transit Administration by June 30, 2027.  This is a onetime appropriation and is available until June 30, 2030.

 

$3,000,000 in fiscal year 2024 is for highway bus rapid transit project development in the marked U.S. Highway 169 and marked Trunk Highway 55 corridors, including but not limited to feasibility study, predesign, design, engineering, environmental analysis and remediation, and right-of-way acquisition.

 

      Subd. 3.  Metro Mobility

 

55,976,000

 

55,976,000

 

This appropriation is for Metro Mobility under Minnesota Statutes, section 473.386.

 

      Sec. 4.  DEPARTMENT OF PUBLIC SAFETY

 

 

 

 

 

      Subdivision 1.  Total Appropriation

 

$298,096,000

 

$281,378,000

 

Appropriations by Fund

 

 

2024

 

2025

General

44,758,000

35,470,000

H.U.T.D. 

1,336,000

1,378,000

Special Revenue

72,296,000

73,442,000

Trunk Highway

179,706,000

171,088,000

 

The appropriations in this section are to the commissioner of public safety.


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The amounts that may be spent for each purpose are specified in the following subdivisions.  The commissioner must spend appropriations from the trunk highway fund in subdivision 3 only for State Patrol purposes.

 

      Subd. 2.  Administration and Related Services

 

 

 

 

 

(a) Office of Communications

 

896,000

 

1,148,000

 

This appropriation is from the general fund.

 

(b) Public Safety Support

 

9,976,000

 

11,773,000

 

Appropriations by Fund

 

 

2024

 

2025

General

5,049,000

6,564,000

Trunk Highway

4,927,000

5,209,000

 

$1,482,000 in each year is from the general fund for staff and operating costs related to public engagement activities.

 

(c) Public Safety Officer Survivor Benefits

 

640,000

 

640,000

 

This appropriation is from the general fund for payment of public safety officer survivor benefits under Minnesota Statutes, section 299A.44.  If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

 

(d) Public Safety Officer Reimbursements

 

1,367,000

 

1,367,000

 

This appropriation is from the general fund for transfer to the public safety officer's benefit account.  This appropriation is available for reimbursements under Minnesota Statutes, section 299A.465.

 

(e) Soft Body Armor Reimbursements

 

745,000

 

745,000

 

This appropriation is from the general fund for soft body armor reimbursements under Minnesota Statutes, section 299A.38.

 

(f) Technology and Support Services

 

6,712,000

 

6,783,000

 

Appropriations by Fund

 

 

 

2024

 

2025

 

General

1,645,000

1,684,000

 

Trunk Highway

5,067,000

5,099,000

 


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         Subd. 3.  State Patrol

 

 

 

 

 

(a) Patrolling Highways

 

154,044,000

 

141,731,000

 

Appropriations by Fund

 

 

2024

 

2025

General

387,000

37,000

H.U.T.D. 

92,000

92,000

Trunk Highway

153,565,000

141,602,000

 

$350,000 in fiscal year 2024 is from the general fund for predesign of a State Patrol headquarters building and related storage and training facilities.  The commissioner of public safety must work with the commissioner of administration to complete the predesign.  This is a onetime appropriation and is available until June 30, 2027. 

 

$14,500,000 in fiscal year 2024 is from the trunk highway fund to purchase and equip a helicopter for the State Patrol.  This is a onetime appropriation and is available until June 30, 2025.

 

$2,300,000 in fiscal year 2024 is from the trunk highway fund to purchase a Cirrus single engine airplane for the State Patrol.  This is a onetime appropriation and is available until June 30, 2025.

 

$1,700,000 in each year is from the trunk highway fund for staff and equipment costs of pilots for the State Patrol.

 

$611,000 in fiscal year 2024 and $352,000 in fiscal year 2025 are from the trunk highway fund to support the State Patrol's accreditation process under the Commission on Accreditation for Law Enforcement Agencies.

 

(b) Commercial Vehicle Enforcement

 

15,446,000

 

18,423,000

 

$2,948,000 in fiscal year 2024 and $5,248,000 in fiscal year 2025 are to provide the required match for federal grants for additional troopers and nonsworn commercial vehicle inspectors.

 

(c) Capitol Security

 

18,666,000

 

19,231,000

 

This appropriation is from the general fund.

 

The commissioner must not:

 

(1) spend any money from the trunk highway fund for capitol security; or


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(2) permanently transfer any state trooper from the patrolling highways activity to capitol security.

 

The commissioner must not transfer any money appropriated to the commissioner under this section:

 

(1) to capitol security; or

 

(2) from capitol security.

 

(d) Vehicle Crimes Unit

 

1,244,000

 

1,286,000

 

This appropriation is from the highway user tax distribution fund to investigate:

 

(1) registration tax and motor vehicle sales tax liabilities from individuals and businesses that currently do not pay all taxes owed; and

 

(2) illegal or improper activity related to the sale, transfer, titling, and registration of motor vehicles.

 

      Subd. 4.  Driver and Vehicle Services

 

 

 

 

 

(a) Driver Services

 

42,615,000

 

43,262,000

 

This appropriation is from the driver and vehicle services operating account under Minnesota Statutes, section 299A.705.

 

$750,000 in fiscal year 2024 and $120,000 in fiscal year 2025 are for reimbursement to driver's license agents for the purchase and maintenance of equipment necessary for a full-service provider, as defined in Minnesota Statutes, section 171.01, subdivision 33a, following application to the commissioner.  Of the amount in fiscal year 2024, the commissioner may provide no more than $15,000 to each driver's license agent.

 

$115,000 in fiscal year 2024 and $109,000 in fiscal year 2025 are for staff costs to manage, review, and audit online driver education programs.

 

$262,000 in fiscal year 2024 and $81,000 in fiscal year 2025 are for implementation of race and ethnicity information collection from applicants for drivers' licenses and identification cards.

 

$58,000 in fiscal year 2024 is for the implementation costs of a watercraft operator's permit indicator on drivers' licenses and identification cards.


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$2,598,000 in each year is to maintain driver's license examination stations.  The commissioner must keep open all driver's license examination stations that are open on the effective date of this section, including any stations that reopened following closure in 2020 due to the COVID-19 pandemic.

 

(b) Vehicle Services

 

34,238,000

 

28,737,000

 

Appropriations by Fund

 

 

2024

 

2025

General

6,000,000

-0-

Special Revenue

28,238,000

28,737,000

 

The appropriation from the special revenue fund is from the driver and vehicle services operating account under Minnesota Statutes, section 299A.705.

 

$202,000 in fiscal year 2024 and $192,000 in fiscal year 2025 are for staff costs related to monitoring and auditing records issued by full-service providers.

 

$6,000,000 in fiscal year 2024 is from the general fund for payments to deputy registrars.  The commissioner must make payments to each deputy registrar based proportionally on the total number of transactions, excluding corrections and transactions at a self-service kiosk, completed by each deputy registrar during the previous fiscal year.  The payments must be made on or before July 15, 2023.

 

$1,600,000 in fiscal year 2024 and $1,300,000 in fiscal year 2025 are for staff and operating costs related to additional vehicle inspection sites.

 

$101,000 in fiscal year 2024 and $96,000 in fiscal year 2025 are for an appeals process for information technology system data access revocations, including costs of staff and equipment.

 

      Subd. 5.  Traffic Safety

 

9,504,000

 

4,249,000

 

Appropriations by Fund

 

 

2024

 

2025

General

8,803,000

3,494,000

Trunk Highway

701,000

755,000

 

$1,000,000 in fiscal year 2024 is from the general fund for grants to local units of government to perform additional traffic safety enforcement activities in safe road zones under Minnesota Statutes,


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section 169.065.  In allocating funds, the commissioner must account for other sources of funding for increased traffic enforcement.

 

$2,000,000 in fiscal year 2024 is from the general fund for grants to local units of government to increase traffic safety enforcement activities, including training, equipment, overtime, and related costs for peace officers to perform duties that are specifically related to traffic management and traffic safety.

 

$2,000,000 in fiscal year 2024 is from the general fund for grants to law enforcement agencies to undertake targeted speed reduction efforts on rural high-risk roadways identified by the commissioner based on crash information and consultation with the Advisory Council on Traffic Safety under Minnesota Statutes, section 4.076, and local traffic safety partners.

 

$50,000 in fiscal year 2024 is from the general fund for an education and awareness campaign on motor vehicles passing school buses, designed to:  (1) help reduce occurrences of motor vehicles unlawfully passing school buses; and (2) inform drivers about the safety of pupils boarding and unloading from school buses, including laws requiring a motor vehicle to stop when a school bus has extended the stop-signal arm and is flashing red lights and penalties for violations.  The commissioner must identify best practices, review effective communication methods to educate drivers, and consider multiple forms of media to convey the information.

 

$100,000 in fiscal year 2024 is from the general fund for a public awareness campaign to promote understanding and compliance with laws regarding the passing of parked authorized vehicles. 

 

$350,000 in fiscal year 2024 is from the general fund for grants to local units of government for safe ride programs that provide safe transportation options for patrons of hospitality and entertainment businesses within a community.

 

$250,000 in fiscal year 2024 is from the general fund for the traffic safety violations disposition analysis under article 4, section 109.

 

$2,000,000 in each year is from the general fund for operations and traffic safety projects and activities of the Advisory Council on Traffic Safety under Minnesota Statutes, section 4.076.

 

$98,000 in each year is from the general fund to coordinate a statewide traffic safety equity program, including staff costs. 

 

The following amounts are for the staff and operating costs related to a Traffic Safety Data Analytics Center:  (1) $407,000 in fiscal year 2024 and $813,000 in fiscal year 2025 from the general fund;


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and (2) $140,000 in each year is from the trunk highway fund.  The base from the trunk highway fund is $187,000 in each of fiscal years 2026 and 2027.

 

      Subd. 6.  Pipeline Safety

 

2,003,000

 

2,003,000

 

Appropriations by Fund

 

 

2024

 

2025

General

560,000

560,000

Special Revenue

1,443,000

1,443,000

 

The appropriation from the special revenue fund is from the pipeline safety account under Minnesota Statutes, section 299J.18.

 

$560,000 in each year is from the general fund for staff and operating costs related to oversight of the excavation notice system under Minnesota Statutes, chapter 216D, including education, investigation, and enforcement activities.

 

      Sec. 5.  LEGISLATIVE COORDINATING COMMISSION

$225,000

 

$-0-

 

This appropriation is from the general fund to the Legislative Coordinating Commission for costs of the Metropolitan Governance Task Force under article 4, section 123.

 

      Sec. 6.  MINNESOTA MANAGEMENT AND BUDGET

 

 

 

 

      Subdivision 1.  Federal Funds Coordinator

 

570,000

 

570,000

 

(a) This appropriation is from the general fund to the commissioner of management and budget for a coordinator and support staff to provide for maximization of federal formula and discretionary grant funds to recipients in the state, including but not limited to funds under:  (1) the Infrastructure Investment and Jobs Act (IIJA), Public Law 117-58; (2) the Inflation Reduction Act of 2022, Public Law 117-169; (3) the CHIPS and Science Act of 2022, Public Law 117-167; and (4) subsequent federal appropriations acts associated with a spending authorization or appropriation under clauses (1) to (3).

 

(b) The duties of the federal coordinator include but are not limited to:

 

(1) serving as the state agency lead on activities related to federal infrastructure funds;

 

(2) coordinating on federal grants with the governor, legislature, state agencies, federally recognized Tribal governments, political subdivisions, and private entities; and


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(3) developing methods to maximize the amount and effectiveness of federal grants provided to recipients in the state.

 

      Subd. 2.  Federal Funds Coordinator; Fiscal Year 2023

 

 

 

 

 

$70,000 in fiscal year 2023 is appropriated from the general fund to the commissioner of management and budget for the purposes specified in subdivision 1.  This amount is a onetime appropriation and is available until June 30, 2024.

 

EFFECTIVE DATE.  Subdivision 2 is effective the day following final enactment.

 

      Sec. 7.  Laws 2018, chapter 214, article 1, section 16, subdivision 11, as amended by Laws 2019, chapter 2, article 2, section 4, is amended to read:

 

      Subd. 11.  Corridors of Commerce

 

 

 

400,000,000

 

(a) From the bond proceeds account in the trunk highway fund for the corridors of commerce program under Minnesota Statutes, section 161.088.

 

(b) This appropriation is available in the amounts of:

 

(1) $150,000,000 in fiscal year 2022;

 

(2) $150,000,000 in fiscal year 2023; and

 

(3) $100,000,000 in fiscal year 2024.

 

(c) The commissioner must select projects for the corridors of commerce program solely using the results of the spring 2018 evaluation for the corridors of commerce program, in order based on total score.  In addition to the projects selected for funding in the first round from the spring 2018 evaluation, the commissioner must select at least two projects located outside the Department of Transportation metropolitan district.  If funds are insufficient for an identified project, the commissioner must either select the identified project, or select one or more alternative projects that are (1) for a segment within the project limits of the identified project; and (2) also identified and scored in the spring 2018 evaluation process.  For projects located outside the Department of Transportation metropolitan district, the commissioner must not select a project located in a county within which a project was selected for funding in the first round in the spring 2018 evaluation for the corridors of commerce program.

 

(d) Notwithstanding the project selection requirements under paragraph (c), any remaining amount of this appropriation is for predesign, design, engineering, and construction of an overpass


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and associated safety improvements at the intersection of marked Trunk Highway 9 and marked Trunk Highway 23 in the city of New London.

 

(e) The appropriation in Laws 2017, First Special Session chapter 3, article 2, section 2, subdivision 1, is available for the projects selected under paragraph (c) that the commissioner determines are ready to proceed.

 

(e) (f) The appropriation in this subdivision is available for any projects selected by the commissioner using the results of the evaluation for the corridors of commerce program conducted in spring 2018.

 

(f) (g) This appropriation cancels as specified under Minnesota Statutes, section 16A.642, except that the commissioner of management and budget shall count the start of authorization for issuance of state bonds as the first day of the fiscal year during which the bonds are available to be issued, and not as the date of enactment of this section.

 

      Sec. 8.  Laws 2021, First Special Session chapter 5, article 1, section 4, subdivision 4, is amended to read:

 

      Subd. 4.  Driver and Vehicle Services

 

 

 

 

 

(a) Driver Services

 

44,820,000

 

39,685,000

 

This appropriation is from the driver services operating account in the special revenue fund under Minnesota Statutes, section 299A.705, subdivision 2.

 

$2,598,000 in each year is for costs to reopen all driver's license examination stations that were closed in 2020 due to the COVID‑19 pandemic.  This amount is not available for the public information center, general administration, or operational support.  This is a onetime appropriation.

 

$2,229,000 in fiscal year 2022 and $155,000 in fiscal year 2023 are for costs of a pilot project for same-day issuance of drivers' licenses and state identification cards.

 

The base is $36,398,000 in each of fiscal years 2024 and 2025.  Any unexpended amount of this appropriation remaining on June 30, 2023, cancels to the driver and vehicle services operating account under Minnesota Statutes, section 299A.705.


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(b) Vehicle Services

 

37,418,000

 

35,535,000 27,299,000

 

Appropriations by Fund

 

 

2022

 

2023

H.U.T.D. 

686,000

-0-

Special Revenue

36,732,000

35,535,000 27,299,000

 

The special revenue fund appropriation is from the vehicle services operating account under Minnesota Statutes, section 299A.705, subdivision 1.

 

$200,000 in fiscal year 2022 is from the vehicle services operating account for the independent expert review of MnDRIVE under article 4, section 144, for expenses of the chair and the review team related to work completed pursuant to that section, including any contracts entered into.  This is a onetime appropriation.

 

$250,000 in fiscal year 2022 is from the vehicle services operating account for programming costs related to the implementation of self-service kiosks for vehicle registration renewal.  This is a onetime appropriation and is available in fiscal year 2023.

 

The base is $33,788,000 in each of fiscal years 2024 and 2025.  Any unexpended amount of the appropriation from the special revenue fund remaining on June 30, 2023, cancels to the driver and vehicle services operating account under Minnesota Statutes, section 299A.705.

 

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

 

Sec. 9.  APPROPRIATION; TRANSPORTATION MANAGEMENT ORGANIZATIONS.

 

(a) $300,000 in fiscal year 2024 and $300,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of transportation for grants to the I-494 Corridor Commission to provide telework resources, assistance, information, and related activities on a statewide basis.

 

(b) $300,000 in fiscal year 2024 and $300,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of transportation for grants to the St. Paul transportation management organization.  The organization must provide public education and information to support a reduction in vehicle miles traveled throughout the metropolitan area.

 

(c) $103,000 in fiscal year 2024 and $103,000 in fiscal year 2025 are appropriated from the general fund to the commissioner of transportation for grants to the downtown Minneapolis transportation management organization.  Programs funded with this appropriation must include but are not limited to a hybrid commuter education pilot program.


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(d) $350,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for grants to the city of Chatfield to develop a transportation management organization in southeastern Minnesota.  Money under this paragraph is available for developing a comprehensive assessment and financial plan for a transportation management organization in the counties of Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, Wabasha, and Winona.  The study must assess how the transportation management organization can develop resources to meet the region's growing and changing transportation needs and prioritize transportation-related challenges that affect the region's workforce, access to health care and postsecondary education, and quality of life.

 

(e) Money under paragraphs (a) to (c) is available for programming and service expansion to assist companies and commuters with carpool, vanpool, bicycle commuting, telework, and transit.

 

(f) The commissioner must not retain any portion of the appropriations under this section.

 

(g) The appropriations in paragraphs (a) to (d) are onetime appropriations.

 

Sec. 10.  APPROPRIATION; RAIL CORRIDOR SERVICE.

 

$4,000,000 in fiscal year 2023 is appropriated from the general fund to the commissioner of transportation for rail corridor service analysis under article 4, section 112.  This is a onetime appropriation and is available until December 31, 2025.

 

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

 

Sec. 11.  APPROPRIATION; TRANSIT SERVICE INTERVENTION PROJECT.

 

$2,000,000 in fiscal year 2023 is appropriated from the general fund to the Metropolitan Council for grants to participating organizations in the Transit Service Intervention Project under article 4, section 113.  The council must allocate the grants to provide reimbursements for project implementation, including but not limited to intervention teams, labor, and other expenses.  This is a onetime appropriation and is available until June 30, 2024.

 

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

 

Sec. 12.  APPROPRIATIONS; STATE PATROL OPERATING DEFICIENCY.

 

(a) $6,728,000 in fiscal year 2023 is appropriated from the trunk highway fund to the commissioner of public safety for State Patrol operating costs.  This is a onetime appropriation and is available until December 31, 2023.

 

(b) $106,000 in fiscal year 2023 is appropriated from the highway user tax distribution fund to the commissioner of public safety for the State Patrol Vehicle Crimes Unit.  This is a onetime appropriation and is available until December 31, 2023.

 

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

 

Sec. 13.  APPROPRIATION; DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT.

 

$30,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of employment and economic development for temporary staff costs related to the procurement of a statewide freight optimization tool for the Department of Transportation.  This is a onetime appropriation and is available until June 30, 2025.


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Sec. 14.  APPROPRIATION; TRAFFIC SAFETY.

 

$2,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of public safety for grants to school districts, nonpublic schools, charter schools, and companies that provide school bus services for the purchase and installation of school bus stop-signal arm camera systems.  In awarding grants, the commissioner must follow the same requirements as under Laws 2021, First Special Session chapter 5, article 1, section 4, subdivision 5.  This is a onetime appropriation and is available until June 30, 2025.

 

Sec. 15.  APPROPRIATION; SMALL COMMUNITY PARTNERSHIPS.

 

(a) $2,500,000 in fiscal year 2024 and $2,500,000 in fiscal year 2025 are appropriated from the general fund to the Board of Regents of the University of Minnesota for small community partnerships on infrastructure project analysis and development as provided in this section.  This is a onetime appropriation and is available until June 30, 2026.

 

(b) The appropriation under this section must be used for:

 

(1) partnership activities in the Regional Sustainable Development Partnerships, the Center for Transportation Studies, the Minnesota Design Center, the Humphrey School of Public Affairs, the Center for Urban and Regional Affairs, or other related entities;

 

(2) support and assistance to small communities that includes:

 

(i) methods to incorporate consideration of sustainability, resiliency, and adaptation to the impacts of climate change; and

 

(ii) identification and cross-sector analysis of any potential associated projects and efficiencies through coordinated investments in other infrastructure or assets; and

 

(3) prioritization of support and assistance to political subdivisions and federally recognized Tribal governments based on insufficiency of capacity to undertake project development and apply for state or federal infrastructure grants.

 

(c) The agreement may provide for project analysis and development activities that include but are not limited to planning, scoping, analysis, predesign, design, pre-engineering, and engineering.

 

Sec. 16.  APPROPRIATION; RICE STREET CAPITOL AREA REDESIGN.

 

(a) $25,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for one or more grants to the city of St. Paul, Ramsey County, or both for planning, predesign, design, engineering, environmental analysis and mitigation, land acquisition, and reconstruction of Rice Street from West Pennsylvania Avenue to John Ireland Boulevard.  This is a onetime appropriation and is available until June 30, 2029.

 

(b) The Rice Street Capitol Area redesign project under this section must:

 

(1) be developed under a multiagency process that includes but is not limited to coordination between the city of St. Paul, Ramsey County, the Metropolitan Council, the commissioner of transportation, and the Capitol Area Architectural and Planning Board under Minnesota Statutes, section 15B.03;

 

(2) conform with the comprehensive plan adopted under Minnesota Statutes, section 15B.05, and the street design manual adopted by the city of St. Paul; and

 

(3) establish a multimodal hub in the vicinity of Rice Street and University Avenue.


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Sec. 17.  APPROPRIATIONS; PRIORITY TRANSPORTATION PROJECTS.

 

Subdivision 1.  Crosstown pedestrian bridge; Edina.  $3,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for a grant to the city of Edina for design, engineering, and construction of a new Americans with Disabilities Act-compliant safe overpass bridge to replace the current Crosstown Pedestrian Bridge over marked Trunk Highway 62 in the city of Edina.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 2.  U.S. Highway 10; Sherburne County.  $6,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for preliminary engineering of safety and access improvements on marked U.S. Highway 10 between the cities of Clear Lake and St. Cloud.  This appropriation is for phase one of the project.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 3.  Veterans Bridge; St. Cloud.  $750,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for a grant to the city of St. Cloud for predesign, design, engineering, environmental analysis, and construction of repairs and rehabilitation to the Veterans Bridge in the city of St. Cloud, including associated pedestrian safety improvements.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 4.  University Drive; St. Cloud.  $8,500,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for a grant to the city of St. Cloud for predesign, design, engineering, environmental analysis, and reconstruction of University Drive from Stearns County State-Aid Highway 75 to 15th Avenue Southeast, including bicycle facility improvements and utility replacement.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 5.  Trunk Highway 7 study; Hennepin County.  $750,000 in fiscal year 2024 is appropriated from the trunk highway fund to the commissioner of transportation for a feasibility study of safety, access, and other improvements on marked Trunk Highway 7 from the western border of Hennepin County to marked Interstate Highway 494, including connecting roadways.  Any amount remaining following the study is available for environmental analysis and preliminary design.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 6.  Highway-rail grade separation; Moorhead.  $10,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for one or more rail grade separation projects in the city of Moorhead in accordance with Minnesota Statutes, section 219.016.  This appropriation is in addition to the amount appropriated in Laws 2020, Fifth Special Session chapter 3, article 2, section 2, subdivision 2, for the same purpose.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 7.  U.S. Highway 52 box culvert underpass; Dakota County.  $2,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for preliminary and final design, engineering, environmental analysis, acquisition of permanent easements and rights-of-way, and construction of a box culvert underpass at marked U.S. Highway 52 and Dakota County Road 6 near the Hmong American Farmers Association.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 8.  Third Street/Kellogg Boulevard Bridge; St. Paul.  $3,500,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for a grant to the city of St. Paul for the Third Street/Kellogg Boulevard bridge project.  This appropriation is in addition to the appropriation for the same purpose in Laws 2020, Fifth Special Session chapter 3, article 1, section 16, subdivision 19, and in addition to any other appropriations for the same purpose enacted in the 2023 legislative session.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 9.  Trunk Highway 36 interchange; Washington County.  $5,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for a grant to Washington County for predesign, design, property acquisition, and construction of a new interchange at marked Trunk Highway 36 and


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Washington County State-Aid Highway 17, known as Lake Elmo Avenue, in Washington County.  This appropriation is in addition to any other appropriations for the same purpose enacted in the 2023 legislative session.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 10.  U.S. Highway 169/Trunk Highway 282 interchange; Jordan.  $4,900,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for a grant to Scott County for design and construction of local road improvements associated with an interchange at marked U.S. Highway 169, marked Trunk Highway 282, and Scott County State-Aid Highway 9 in the city of Jordan, including accommodations for bicycles and pedestrians, rail grade separation, road work, and public utility relocations.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 11.  U.S. Highway 169/109th Avenue North intersection; Hennepin County.  $10,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for one or more grants to the city of Brooklyn Park, the city of Champlin, or both, for environmental documentation, preliminary engineering, right-of-way acquisition, final design, and construction of local road portions of intersection improvements at 109th Avenue North and marked U.S. Highway 169, including:  (1) associated frontage roads, backage roads, and connecting local streets; and (2) any associated water, sanitary sewer, and stormwater infrastructure improvements necessary or required for the construction of the local road improvements portion of the project.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 12.  U.S. Highway 169 expansion; Itasca County.  $6,000,000 in fiscal year 2024 is appropriated from the trunk highway fund to the commissioner of transportation for planning, predesign, design, engineering, and environmental analysis and remediation of expansion of marked U.S. Highway 169 from a two-lane to a four-lane divided highway between Taconite and Pengilly.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 13.  Trunk Highway 5; Chanhassen.  $20,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for a grant to Carver County to complete the preliminary engineering, environmental documentation, final design, right-of-way acquisition, and construction of improvements to marked Trunk Highway 5 from Minnewashta Parkway to marked Trunk Highway 41 in the city of Chanhassen, including mainline highway expansion, cross streets, off-street trails, a bridge over Lake Minnewashta wetlands, utility relocations, and installations.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 14.  Accessible facilities; certain cities.  $5,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for grants to cities of the first class, as specified under Minnesota Statutes, section 410.01, for construction of Americans with Disabilities Act-accessible facilities in the public right‑of-way.  The commissioner must consult with the cities when determining the allocation of grant awards.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 15.  East River Road; Coon Rapids.  $1,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for a grant to the city of Coon Rapids, Anoka County, or both, for design and right-of-way acquisition for interchange construction and associated improvements to Anoka County State-Aid Highway 1 (East River Road) at marked Trunk Highway 610 in the city of Coon Rapids.  This appropriation is in addition to the appropriation in Laws 2020, Fifth Special Session chapter 3, article 1, section 16, subdivision 3.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 16.  St. Louis County State-Aid Highway 100; Aurora.  $3,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for one or more grants to St. Louis County for predesign, design, engineering, environmental analysis and mitigation, land acquisition, and reconstruction of St. Louis County State-Aid Highway 100 (3rd Avenue North and Main Street) from marked Trunk Highway 135 to St. Louis County State-Aid Highway 110 in the city of Aurora.  This is a onetime appropriation and is available until June 30, 2027.


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Subd. 17.  Progress Parkway; Eveleth.  $6,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for one or more grants to St. Louis County for predesign, design, engineering, environmental analysis and mitigation, land acquisition, construction, and reconstruction of Progress Parkway to provide for intersection improvements and road realignment and extension from marked U.S. Highway 53 and St. Louis County State-Aid Highway 142 to marked Trunk Highway 37 and Station 44 Road in the city of Eveleth.  This is a onetime appropriation and is available until June 30, 2027.

 

Subd. 18.  Town roads.  $7,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner of transportation for a grant to a township with a population greater than 10,000 according to the last two federal decennial censuses.  This appropriation is for the purposes specified in Minnesota Statutes, section 162.081, subdivision 4.

 

Sec. 18.  ACCOUNT USE FOR CERTAIN APPROPRIATIONS.

 

(a) If an appropriation in fiscal year 2024 or thereafter from the vehicle services operating account under Minnesota Statutes, section 299A.705, subdivision 1, or from the driver services operating account under Minnesota Statutes, section 299A.705, subdivision 2, is enacted during the 2023 regular legislative session, the appropriation is instead from the driver and vehicle services operating account as provided under article 4, section 82.

 

(b) Notwithstanding Minnesota Statutes, section 645.26, subdivision 3, this section prevails for an appropriation as provided under paragraph (a).

 

Sec. 19.  APPROPRIATION CANCELLATIONS.

 

(a) $4,797,000 of the appropriation in fiscal year 2022 for safe routes to school under Laws 2021, First Special Session chapter 5, article 1, section 2, subdivision 2, paragraph (c), is canceled to the general fund on June 29, 2023. 

 

(b) $974,000 of the appropriation from the general fund in fiscal year 2022 for freight under Laws 2021, First Special Session chapter 5, article 1, section 2, subdivision 2, paragraph (e), is canceled to the general fund on June 29, 2023.

 

(c) $15,000 of the appropriation in fiscal year 2022 and $15,000 of the appropriation in fiscal year 2023 to the commissioner of employment and economic development from the general fund under Laws 2021, First Special Session chapter 5, article 1, section 7, is canceled to the general fund on June 29, 2023.

 

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

 

Sec. 20.  TRANSFERS.

 

(a) $152,650,000 in fiscal year 2024 is transferred from the general fund to the trunk highway fund for the state match for highway formula and discretionary grants under the federal Infrastructure Investment and Jobs Act, Public Law 117-58, and for related state investments.

 

(b) $19,500,000 in fiscal year 2024 and $19,500,000 in fiscal year 2025 are transferred from the general fund to the active transportation account under Minnesota Statutes, section 174.38.  The base for this transfer is $8,875,000 in fiscal year 2026 and $9,000,000 in fiscal year 2027. 

 

(c) By June 30, 2023, the commissioner of management and budget must transfer any remaining unappropriated balance, estimated to be $232,000, from the driver services operating account in the special revenue fund to the driver and vehicle services operating account under Minnesota Statutes, section 299A.705.


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(d) By June 30, 2023, the commissioner of management and budget must transfer any remaining unappropriated balance, estimated to be $13,454,000, from the vehicle services operating account in the special revenue fund to the driver and vehicle services operating account under Minnesota Statutes, section 299A.705.

 

EFFECTIVE DATE.  Paragraphs (c) and (d) are effective the day following final enactment.

 

ARTICLE 2

TRUNK HIGHWAY BONDS

 

Section 1.  BOND APPROPRIATIONS.

 

The sums shown in the column under "Appropriations" are appropriated from the bond proceeds account in the trunk highway fund to the commissioner of transportation or other named entity to be spent for public purposes.  Appropriations of bond proceeds must be spent as authorized by the Minnesota Constitution, articles XI and XIV.  Unless otherwise specified, money appropriated in this article for a capital program or project may be used to pay state agency staff costs that are attributed directly to the capital program or project in accordance with accounting policies adopted by the commissioner of management and budget.

 

SUMMARY

 

Department of Transportation

 

$598,590,000

Department of Management and Budget

 

$610,000

TOTAL

 

$599,200,000

 

 

 

 

 

 

APPROPRIATIONS

 

      Sec. 2.  DEPARTMENT OF TRANSPORTATION

 

 

 

 

 

      Subdivision 1.  Corridors of Commerce

 

 

 

$153,000,000

 

(a) This appropriation is to the commissioner of transportation for the corridors of commerce program under Minnesota Statutes, section 161.088.  The commissioner may use up to 17 percent of the amount for program delivery. 

 

(b) This appropriation is available in the amounts of:

 

(1) $8,000,000 in fiscal year 2024;

 

(2) $72,500,000 in fiscal year 2025; and

 

(3) $72,500,000 in fiscal year 2026.

 

(c) From this appropriation, the commissioner must select projects using (1) the results of the spring 2023 evaluation for the corridors of commerce program, and (2) the regional balance requirements as provided under Minnesota Statutes, section 161.088, subdivision 4a.


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(d) The appropriation in this subdivision cancels as specified under Minnesota Statutes, section 16A.642, except that the commissioner of management and budget must count the start of authorization for issuance of state bonds as the first day of the fiscal year during which the bonds are available to be issued as specified under paragraph (b), and not as the date of enactment of this section.

 

      Subd. 2.  State Road Construction

 

 

 

200,000,000

 

(a) This appropriation is to the commissioner of transportation for construction, reconstruction, and improvement of trunk highways, including design-build contracts, internal department costs associated with delivering the construction program, and consultant usage to support these activities.  The commissioner may use up to 17 percent of the amount for program delivery. 

 

(b) This appropriation is available in the amounts of:

 

(1) $67,000,000 in fiscal year 2024;

 

(2) $67,000,000 in fiscal year 2025; and

 

(3) $66,000,000 in fiscal year 2026.

 

(c) The appropriation in this subdivision cancels as specified under Minnesota Statutes, section 16A.642, except that the commissioner of management and budget must count the start of authorization for issuance of state bonds as the first day of the fiscal year during which the bonds are available to be issued as specified under paragraph (b), and not as the date of enactment of this section.

 

      Subd. 3.  Transportation Facilities Capital Improvements

 

 

87,440,000

 

This appropriation is for capital improvements to Department of Transportation facilities.  The improvements must:  (1) support the programmatic mission of the department; (2) extend the useful life of existing buildings; or (3) renovate or construct facilities to meet the department's current and future operational needs.

 

      Subd. 4.  Trunk Highway 65; Anoka County

 

 

 

68,750,000

 

This appropriation is for one or more grants to the city of Blaine, Anoka County, or both for the predesign, right-of-way acquisition, design, engineering, and construction of intersection improvements along Trunk Highway 65 at 99th Avenue Northeast; 105th Avenue Northeast; Anoka County State-Aid Highway 12; 109th Avenue Northeast; 117th Avenue Northeast; and the associated frontage roads and backage roads within the trunk highway system.


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         Subd. 5.  U.S. Highway 10; Coon Rapids

 

 

 

30,000,000

 

This appropriation is for a grant to Anoka County for preliminary engineering, environmental analysis, final design, right-of-way acquisition, construction, and construction administration of a third travel lane in each direction of marked U.S. Highway 10 from east of the interchange with Hanson Boulevard to Round Lake Boulevard in the city of Coon Rapids.

 

      Subd. 6.  Trunk Highway 61; Two Harbors

 

 

 

11,000,000

 

This appropriation is for the preliminary engineering, environmental analysis, final design, right-of-way acquisition, and construction of marked Trunk Highway 61 through the city of Two Harbors in Lake County.  This appropriation does not require a nonstate contribution.

 

      Subd. 7.  U.S. Highway 169 Interchange; Scott County

 

 

 

4,200,000

 

This appropriation is for a grant to Scott County to design and construct trunk highway improvements associated with an interchange at U.S. Highway 169, marked Trunk Highway 282, and Scott County State-Aid Highway 9 in the city of Jordan, including accommodations for bicycles and pedestrians and for bridge and road construction.

 

      Subd. 8.  Trunk Highway 3 Roundabout; Rosemount

 

 

 

2,200,000

 

This appropriation is for design, engineering, planning, right-of-way acquisition, and construction of a roundabout on marked Trunk Highway 3 at the intersection with 142nd Street West in the city of Rosemount.

 

      Subd. 9.  U.S. Highway 8; Chisago County

 

 

 

42,000,000

 

This appropriation is for a grant to Chisago County for predesign, design, engineering, and reconstruction of marked U.S. Highway 8 from Karmel Avenue in Chisago City to marked Interstate Highway 35, including pedestrian and bike trails along and crossings of this segment of marked U.S. Highway 8.  The reconstruction project may include expanding segments of marked U.S. Highway 8 to four lanes, constructing or reconstructing frontage roads and backage roads, and realigning local roads to consolidate, remove, and relocate access onto and off of U.S. Highway 8.  This appropriation is for the portion of the project that is eligible for use of proceeds of trunk highway bonds.  This appropriation is not available until the commissioner of management and budget determines that sufficient resources have been committed from nonstate sources to complete the project.


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         Sec. 3.  BOND SALE EXPENSES

 

 

 

$610,000

 

(a) This appropriation is to the commissioner of management and budget for bond sale expenses under Minnesota Statutes, sections 16A.641, subdivision 8, and 167.50, subdivision 4.

 

(b) This appropriation is available in the amounts of:

 

(1) $330,000 in fiscal year 2024;

 

(2) $140,000 in fiscal year 2025; and

 

(3) $140,000 in fiscal year 2026.

 

      Sec. 4.  BOND SALE AUTHORIZATION. 

 

 

 

 

 

To provide the money appropriated in this article from the bond proceeds account in the trunk highway fund, the commissioner of management and budget shall sell and issue bonds of the state in an amount up to $599,200,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts requested by the commissioner of transportation.  The proceeds of the bonds, except accrued interest and any premium received from the sale of the bonds, must be deposited in the bond proceeds account in the trunk highway fund.

 

ARTICLE 3

TAXATION

 

Section 1.  [41A.30] SUSTAINABLE AVIATION FUEL; TAX CREDITS.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Aircraft" has the meaning given in section 296A.01, subdivision 3.

 

(c) "Aviation gasoline" has the meaning given in section 296A.01, subdivision 7.

 

(d) "Commissioner" means the commissioner of agriculture.

 

(e) "Jet fuel" has the meaning given in section 296A.01, subdivision 8.

 

(f) "Qualifying taxpayer" means a taxpayer, as defined in section 290.01, subdivision 6, that is engaged in the business of:

 

(1) producing sustainable aviation fuel; or

 

(2) blending sustainable aviation fuel with aviation gasoline or jet fuel.

 

(g) "Sustainable aviation fuel" means liquid fuel that:

 

(1) is derived from biomass, as defined in section 41A.15, subdivision 2e;

 

(2) is not derived from palm fatty acid distillates; and


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(3) achieves at least a 50 percent life cycle greenhouse gas emissions reduction in comparison with petroleum‑based aviation gasoline, aviation turbine fuel, and jet fuel as determined by a test that shows:

 

(i) that the fuel production pathway achieves at least a 50 percent life cycle greenhouse gas emissions reduction in comparison with petroleum-based aviation gasoline, aviation turbine fuel, and jet fuel utilizing the most recent version of Argonne National Laboratory's Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model that accounts for reduced emissions throughout the fuel production process; or

 

(ii) that the fuel production pathway achieves at least a 50 percent reduction of the aggregate attributional core life cycle emissions and the positive induced land use change values under the life cycle methodology for sustainable aviation fuels adopted by the International Civil Aviation Organization with the agreement of the United States.

 

Subd. 2.  Tax credit establishment.  (a) A qualifying taxpayer may claim a tax credit against the tax due under chapter 290 equal to $1.50 for each gallon of sustainable aviation fuel that is:

 

(1) produced in Minnesota or blended with aviation or gasoline or jet fuel in Minnesota; and

 

(2) sold in Minnesota to a purchaser who certifies that the sustainable aviation fuel is for use as fuel in an aircraft departing from an airport in Minnesota.

 

(b) The credit may be claimed only after approval and certification by the commissioner and is limited to the amount stated on the credit certificate issued under subdivision 3.  A qualifying taxpayer must apply to the commissioner for certification and allocation of a credit in a form and manner prescribed by the commissioner.

 

(c) A qualifying taxpayer may claim a credit for blending or producing sustainable aviation fuel, but not both.  If sustainable aviation fuel is blended with aviation gasoline or jet fuel, the credit is allowed only for the portion of sustainable aviation fuel that is included in the blended fuel.

 

(d) If the amount of credit that the taxpayer is eligible to receive under this section exceeds the liability for tax under chapter 290, the commissioner of revenue must refund the excess to the taxpayer.

 

Subd. 3.  Credit certificates.  (a) A business must apply to the commissioner to be eligible for a credit certificate as a qualifying taxpayer within two months after the close of its taxable year for all sustainable aviation fuel sold under subdivision 2, paragraph (a), in the taxable year.  The application must be in the form and be made under the procedures specified by the commissioner and must include:

 

(1) evidence of production or blending in Minnesota required under subdivision 2, paragraph (a), clause (1); and

 

(2) a purchaser's certification that the sustainable aviation fuel is for use as fuel in an aircraft departing from an airport in Minnesota, as required under subdivision 2, paragraph (a), clause (2).

 

(b) Within 30 days of receiving an application for certification under this subdivision, the commissioner must:

 

(1) issue a credit certificate under paragraph (c);

 

(2) request additional information from the business; or

 

(3) reject the application for certification.


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If the commissioner requests additional information from the business, the commissioner must either issue a credit certificate or reject the application within 30 days of receiving the additional information.  If a business fails to submit the additional information within 30 days or if the commissioner neither issues a credit certificate within 30 days of receiving the original application or within 30 days of receiving the additional information requested, whichever is later, the application is deemed rejected.

 

(c) A credit certificate must state:

 

(1) the fiscal year for which the credit certificate is issued;

 

(2) the amount of the tax credit; and

 

(3) the taxable year for which the taxpayer may claim the tax credit under section 290.0688.

 

Subd. 4.  Duties.  (a) The commissioner must certify qualifying taxpayers as eligible for the tax credit under subdivision 2 and issue credit certificates under subdivision 3 subject to the allocation limits under subdivision 5.

 

(b) Notwithstanding any other law to the contrary, the commissioner must share information with the commissioner of revenue to the extent necessary to administer the provisions under this section and section 290.0688.  For credit certificates issued under subdivision 3, the commissioner must notify the commissioner of revenue of the issuance within 30 days.

 

(c) Applications for credit certificates must be made available on the department's website by July 1 of each year identified under subdivision 5.

 

(d) The commissioner must allocate credit certificates on a first-come, first-served basis beginning on August 1 of each year listed under subdivision 5.

 

Subd. 5.  Allocation limits.  (a) For tax credits allowed under subdivision 2, the commissioner must not issue credit certificates for more than:

 

(1) $7,400,000 for fiscal year 2025; and

 

(2) $2,100,000 for each of fiscal years 2026 and 2027.

 

(b) If the entire amount authorized under paragraph (a) is not allocated in fiscal year 2025 or 2026, any remaining amount is available for allocation through fiscal year 2030 until the entire allocation has been made.  The commissioner must not issue any credit certificates for fiscal years beginning after June 30, 2030, and any unallocated amounts cancel on that date.

 

Subd. 6.  Appeals.  (a) Any decision of the commissioner under this section may be challenged as a contested case under chapter 14.  The contested case proceeding must be initiated within 60 days of the date of written notification by the commissioner.

 

(b) If a taxpayer challenges a decision of the commissioner under this subdivision, upon perfection of the appeal, the commissioner must notify the commissioner of revenue of the challenge within five days.

 

(c) Nothing in this subdivision affects the commissioner of revenue's authority to audit, review, correct, or adjust returns claiming the credit.


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(d) The commissioner may not hold credit amounts in reserve pending any contested case hearing under this subdivision.

 

Subd. 7.  Expiration.  This section expires for taxable years beginning after December 31, 2030.

 

EFFECTIVE DATE.  This section is effective for taxable years beginning after December 31, 2023, for sustainable aviation fuel sold after June 30, 2024, and before July 1, 2030.

 

Sec. 2.  [162.146] LARGER CITIES ASSISTANCE ACCOUNT.

 

Subdivision 1.  Larger cities assistance account; appropriation.  (a) A larger cities assistance account is created in the special revenue fund.  The account consists of funds under section 174.49, subdivision 3, and as provided by law and any other money donated, allotted, transferred, or otherwise provided to the account.

 

(b) Money in the account is annually appropriated to the commissioner of transportation for apportionment among all the cities that are eligible to receive municipal state aid under sections 162.09 to 162.14.

 

Subd. 2.  Allocation formula.  The commissioner must apportion funds in the larger cities assistance account as follows:

 

(1) 50 percent of the funds proportionally based on each city's share of population, as defined in section 477A.011, subdivision 3, compared to the total population of all cities that are eligible to receive municipal state aid under sections 162.09 to 162.14; and

 

(2) 50 percent of the funds proportionally based on each city's share of money needs, as determined under section 162.13, subdivision 3, compared to the total money needs of all cities that are eligible to receive municipal state aid under sections 162.09 to 162.14.

 

Sec. 3.  Minnesota Statutes 2022, section 163.051, subdivision 1, is amended to read:

 

Subdivision 1.  Tax authorized.  (a) Except as provided in paragraph (c), the board of commissioners of each county is authorized to levy by resolution a wheelage tax at the rate specified in paragraph (b), on each motor vehicle that is kept in such county when not in operation and that is subject to annual registration and taxation under chapter 168.  The board may provide by resolution for collection of the wheelage tax by county officials or it may request that the tax be collected by the state registrar of motor vehicles.  The state registrar of motor vehicles shall collect such tax on behalf of the county if requested, as provided in subdivision 2.

 

(b) The wheelage tax under this section is at the rate of up to $20 per year, in any increment of a whole dollar, as specified by each county that authorizes the tax.

 

(c) The following vehicles are exempt from the wheelage tax:

 

(1) motorcycles, as defined in section 169.011, subdivision 44;

 

(2) motorized bicycles, as defined in section 169.011, subdivision 45; and

 

(3) motorized foot scooters, as defined in section 169.011, subdivision 46.; and

 

(4) vehicles that meet the requirements under section 168.012, subdivision 13.


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(d) For any county that authorized the tax prior to May 24, 2013, the wheelage tax continues at the rate provided under paragraph (b).

 

EFFECTIVE DATE.  This section is effective the day following final enactment and applies to taxes payable for a registration period starting on or after January 1, 2024.

 

Sec. 4.  Minnesota Statutes 2022, section 168.012, is amended by adding a subdivision to read:

 

Subd. 13.  Vehicles registered by certain veterans.  (a) A passenger automobile, one-ton pickup truck, motorcycle, or recreational vehicle registered by a veteran with a total service-connected disability, as defined in section 171.01, subdivision 51, is not subject to:

 

(1) registration taxes under this chapter;

 

(2) administrative fees imposed under subdivision 1c;

 

(3) filing fees and surcharges imposed under section 168.33, subdivision 7; or

 

(4) plate and validation sticker fees imposed under this chapter, including but not limited to:

 

(i) fees under section 168.12, subdivision 5;

 

(ii) fees identified in any section authorizing special plates; and

 

(iii) transfer fees.

 

(b) The exemptions under this subdivision apply to a motor vehicle that is jointly registered by a qualifying veteran and a spouse or domestic partner.

 

(c) The fees identified under paragraph (a), clause (4), do not include:

 

(1) a fee for personalized plates under section 168.12, subdivision 2a; or

 

(2) a required contribution or donation for a special plate, including but not limited to a contribution under sections 168.1255, subdivision 1, clause (6); 168.1258, subdivision 1, clause (4); 168.1259, subdivision 2, clause (5); 168.1287, subdivision 1, clause (5); 168.129, subdivision 1, clause (5); 168.1295, subdivision 1, paragraph (a), clause (5); 168.1296, subdivision 1, paragraph (a), clause (5); and 168.1299, subdivision 1, clause (3).

 

(d) A qualifying veteran may register no more than two motor vehicles at the same time with the exemptions under this subdivision.  Nothing in this paragraph prevents registration of additional motor vehicles as otherwise provided in this chapter.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and applies to taxes and fees payable for a registration period starting on or after January 1, 2024.

 

Sec. 5.  Minnesota Statutes 2022, section 168.013, subdivision 1a, is amended to read:

 

Subd. 1a.  Passenger automobile; hearse.  (a) On passenger automobiles as defined in section 168.002, subdivision 24, and hearses, except as otherwise provided, the registration tax is calculated as $10 plus:

 

(1) for a vehicle initially registered in Minnesota prior to November 16, 2020, 1.25 1.54 percent of the manufacturer's suggested retail price of the vehicle and the destination charge, subject to the adjustments in paragraphs (f) and (g); or


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(2) for a vehicle initially registered in Minnesota on or after November 16, 2020, 1.285 1.575 percent of the manufacturer's suggested retail price of the vehicle, subject to the adjustments in paragraphs (f) and (g).

 

(b) The registration tax calculation must not include the cost of each accessory or item of optional equipment separately added to the vehicle and the manufacturer's suggested retail price.  The registration tax calculation must not include a destination charge, except for a vehicle previously registered in Minnesota prior to November 16, 2020.

 

(c) In the case of the first registration of a new vehicle sold or leased by a licensed dealer, the dealer may elect to individually determine the registration tax on the vehicle using manufacturer's suggested retail price information provided by the manufacturer.  The registrar must use the manufacturer's suggested retail price determined by the dealer as provided in paragraph (d).  A dealer that elects to make the determination must retain a copy of the manufacturer's suggested retail price label or other supporting documentation with the vehicle transaction records maintained under Minnesota Rules, part 7400.5200.

 

(d) The registrar must determine the manufacturer's suggested retail price:

 

(1) using list price information published by the manufacturer or any nationally recognized firm or association compiling such data for the automotive industry;

 

(2) if the list price information is unavailable, using the amount determined by a licensed dealer under paragraph (c);

 

(3) if a dealer does not determine the amount, using the retail price label as provided by the manufacturer under United States Code, title 15, section 1232; or

 

(4) if the retail price label is not available, using the actual sales price of the vehicle.

 

If the registrar is unable to ascertain the manufacturer's suggested retail price of any registered vehicle in the foregoing manner, the registrar may use any other available source or method.

 

(e) The registrar must calculate the registration tax using information available to dealers and deputy registrars at the time the initial application for registration is submitted.

 

(f) The amount under paragraph (a), clauses (1) and (2), must be calculated based on a percentage of the manufacturer's suggested retail price, as follows:

 

(1) during the first year of vehicle life, upon 100 percent of the price;

 

(2) for the second year, 90 95 percent of the price;

 

(3) for the third year, 80 90 percent of the price;

 

(4) for the fourth year, 70 80 percent of the price;

 

(5) for the fifth year, 60 70 percent of the price;

 

(6) for the sixth year, 50 60 percent of the price;

 

(7) for the seventh year, 40 50 percent of the price;

 

(8) for the eighth year, 30 40 percent of the price;


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(9) for the ninth year, 20 25 percent of the price; and

 

(10) for the tenth year, ten percent of the price.

 

(g) For the 11th and each succeeding year, the amount under paragraph (a), clauses (1) and (2), must be calculated as $25 $20.

 

(h) Except as provided in subdivision 23, for any vehicle previously registered in Minnesota and regardless of prior ownership, the total amount due under this subdivision and subdivision 1m must not exceed the smallest total amount previously paid or due on the vehicle.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and applies to taxes payable for a registration period starting on or after January 1, 2024.

 

Sec. 6.  Minnesota Statutes 2022, section 168.33, subdivision 7, is amended to read:

 

Subd. 7.  Filing fees; allocations.  (a) In addition to all other statutory fees and taxes, a filing fee of:

 

(1) $7 an $8 filing fee is imposed on every vehicle registration renewal, excluding pro rate transactions; and

 

(2) $11 a $12 filing fee is imposed on every other type of vehicle transaction, including motor carrier fuel licenses under sections 168D.05 and 168D.06, and pro rate transactions.

 

(b) Notwithstanding paragraph (a):

 

(1) a filing fee may not be charged for a document returned for a refund or for a correction of an error made by the Department of Public Safety, a dealer, or a deputy registrar; and

 

(2) no filing fee or other fee may be charged for the permanent surrender of a title for a vehicle.

 

(c) The filing fee must be shown as a separate item on all registration renewal notices sent out by the commissioner.

 

(d) The statutory fees and taxes, and the filing fees imposed under paragraph (a), and the surcharge imposed under paragraph (f) may be paid by credit card or debit card.  The deputy registrar may collect a surcharge on the statutory fees, taxes, and filing fee payment made under this paragraph not greater than the cost of processing a credit card or debit card transaction, in accordance with emergency rules established by the commissioner of public safety.  The surcharge authorized by this paragraph must be used to pay the cost of processing credit and debit card transactions.

 

(e) The fees collected under this subdivision paragraph (a) by the department must be allocated as follows:

 

(1) of the fees collected under paragraph (a), clause (1):

 

(i) $5.50 $6.50 must be deposited in the driver and vehicle services operating account under section 299A.705, subdivision 1; and

 

(ii) $1.50 must be deposited in the driver and vehicle services technology account under section 299A.705, subdivision 3; and

 

(2) of the fees collected under paragraph (a), clause (2):


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(i) $3.50 must be deposited in the general fund;

 

(ii) $6.00 $7 must be deposited in the driver and vehicle services operating account under section 299A.705, subdivision 1; and

 

(iii) $1.50 must be deposited in the driver and vehicle services technology account under section 299A.705, subdivision 3.

 

(f) In addition to all other statutory fees and taxes, a deputy registrar must assess a $1 surcharge on every transaction for which filing fees are collected under this subdivision.  The surcharge authorized by this paragraph must be (1) deposited in the treasury of the place for which the deputy registrar is appointed, or (2) if the deputy registrar is not a public official, retained by the deputy registrar.  For purposes of this paragraph, a deputy registrar does not include the commissioner.

 

EFFECTIVE DATE.  This section is effective October 1, 2023, except that paragraph (f) is effective January 1, 2024.

 

Sec. 7.  Minnesota Statutes 2022, section 168A.29, is amended by adding a subdivision to read:

 

Subd. 4.  Exemption; vehicles for certain veterans.  The department must not impose any fee under subdivision 1 if the certificate of title is being issued to a person and for a vehicle that meets the requirements under section 168.012, subdivision 13.

 

EFFECTIVE DATE.  This section is effective January 1, 2024.

 

Sec. 8.  [168E.01] DEFINITIONS.

 

Subdivision 1.  Scope.  As used in this chapter, the following terms have the meanings given.

 

Subd. 2.  Accessories and supplies.  "Accessories and supplies" has the meaning given in section 297A.67, subdivision 7a.

 

Subd. 3.  Baby products.  "Baby products" means breast pumps, baby bottles and nipples, pacifiers, teething rings, infant syringes, baby wipes, cribs and bassinets, crib and bassinet mattresses, crib and bassinet sheets, changing tables, changing pads, strollers, car seats and car seat bases, baby swings, bottle sterilizers, and infant eating utensils.

 

Subd. 4.  Clothing.  "Clothing" has the meaning given in section 297A.67, subdivision 8.

 

Subd. 5.  Commissioner.  "Commissioner" means the commissioner of revenue.

 

Subd. 6.  Drugs and medical devices.  "Drugs and medical devices" has the meaning given in section 297A.67, subdivision 7.

 

Subd. 7.  Food and beverage service establishment.  "Food and beverage service establishment" has the meaning given in section 157.15, subdivision 5.

 

Subd. 8.  Food and food ingredients.  "Food and food ingredients" has the meaning given in section 297A.67, subdivision 2.

 

Subd. 9.  Marketplace provider.  "Marketplace provider" has the meaning given in section 297A.66, subdivision 1, paragraph (d).


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Subd. 10.  Person.  "Person" has the meaning given in section 297A.61, subdivision 2.

 

Subd. 11.  Prepared food.  "Prepared food" has the meaning given in section 297A.61, subdivision 31.

 

Subd. 12.  Retail delivery.  (a) "Retail delivery" means a delivery to a person located in Minnesota of the following items as part of a retail sale:

 

(1) tangible personal property that is subject to taxation under chapter 297A; and

 

(2) clothing, as defined under section 297A.67, subdivision 8, excluding cloth and disposable child and adult diapers.

 

(b) Retail delivery does not include pickup at the retailer's place of business, including curbside delivery.

 

Subd. 13.  Retail delivery fee.  "Retail delivery fee" means the fee imposed under section 168E.03 on retail deliveries.

 

Subd. 14.  Retail sale.  "Retail sale" has the meaning given in section 297A.61, subdivision 4.

 

Subd. 15.  Retailer.  "Retailer" means any person making sales, leases, or rental of personal property or services within or into the state of Minnesota.  Retailer includes a:

 

(1) retailer maintaining a place of business in this state;

 

(2) marketplace provider maintaining a place of business in this state, as defined in section 297A.66, subdivision 1, paragraph (a);

 

(3) retailer not maintaining a place of business in this state; and

 

(4) marketplace provider not maintaining a place of business in this state, as defined in section 297A.66, subdivision 1, paragraph (b).

 

Subd. 16.  Tangible personal property.  "Tangible personal property" has the meaning given in section 297A.61, subdivision 10.

 

Subd. 17.  Threshold amount.  "Threshold amount" means $100, before application of the tax imposed under section 297A.62, subdivisions 1 and 1a, and any applicable local sales and use taxes, and excluding exempt items under section 168E.05.

 

EFFECTIVE DATE.  This section is effective July 1, 2024.

 

Sec. 9.  [168E.03] FEE IMPOSED.

 

Subdivision 1.  Retail delivery fee imposed.  (a) A fee is imposed on each retailer equal to 50 cents on each transaction that equals or exceeds the threshold amount involving retail delivery in Minnesota.  The retailer may, but is not required to, collect the fee from the purchaser.  If separately stated on the invoice, bill of sale, or similar document given to the purchaser, the fee is excluded from the sales price for purposes of the tax imposed under chapter 297A.


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(b) If the retailer collects the fee from the purchaser:

 

(1) the retail delivery fee must be charged in addition to any other delivery fee; and

 

(2) the retailer must show the total of the retail delivery fee and other delivery fees as separate items and distinct from the sales price and any other taxes or fees imposed on the retail delivery on the purchaser's receipt, invoice, or other bill of sale.  The receipt, invoice, or other bill of sale must state the retail delivery fee as "road improvement and food delivery fee."

 

Subd. 2.  Multiple items or shipments.  The fee imposed under subdivision 1 is imposed once per transaction regardless of the number of shipments necessary to deliver the items of tangible personal property purchased or of the number of items of tangible personal property purchased.

 

Subd. 3.  Returns and cancellations.  The fee imposed under subdivision 1 is nonrefundable if any or all items purchased are returned to a retailer or if the retailer provides a refund or credit in the amount equal to or less than the purchase price.  The fee must be refunded to the purchaser if the retail delivery is canceled by the purchaser, retailer, or delivery provider.

 

EFFECTIVE DATE.  This section is effective July 1, 2024.

 

Sec. 10.  [168E.05] EXEMPTIONS.

 

Subdivision 1.  Transactions.  The following retail deliveries are exempt from the fee imposed by this chapter:

 

(1) a retail delivery to a purchaser who is exempt from tax under chapter 297A;

 

(2) a retail delivery on a motor vehicle for which a permit issued by the commissioner of transportation or a road authority is required under chapter 169 or 221 and the retailer has maintained books and records through reasonable and verifiable standards that the retail delivery was on a qualifying vehicle;

 

(3) a retail delivery resulting from a retail sale of food and food ingredients or prepared food;

 

(4) a retail delivery resulting from a retail sale by a food and beverage service establishment, regardless of whether the retail delivery is made by a third party other than the food and beverage service establishment; and

 

(5) a retail delivery resulting from a retail sale of drugs and medical devices, accessories and supplies, or baby products.

 

Subd. 2.  Small businesses.  (a) The fee imposed by this chapter and the requirements of this chapter do not apply to:

 

(1) a retailer that made retail sales totaling less than $1,000,000 in the previous calendar year; and

 

(2) a marketplace provider when facilitating the sale of a retailer that made retail sales totaling less than $100,000 in the previous calendar year through the marketplace provider.

 

(b) A retailer or marketplace provider must begin collecting and remitting the delivery fee to the commissioner on the first day of a calendar month occurring no later than 60 days after the retailer or marketplace provider exceeds a retail sales threshold in paragraph (a).

 

EFFECTIVE DATE.  This section is effective July 1, 2024.


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Sec. 11.  [168E.07] COLLECTION AND ADMINISTRATION.

 

Subdivision 1.  Returns; payment of fees.  (a) A retailer must report the fee on a return prescribed by the commissioner and must remit the fee with the return.  The return and fee must be filed and paid using the filing cycle and due dates provided for taxes imposed under chapter 297A.

 

Subd. 2.  Collection and remittance.  A retailer that collects the fee from the purchaser must collect the fee in the same manner as the tax collected under chapter 297A.  A retailer using a third-party entity to collect and remit the tax imposed under chapter 297A may elect to have that third-party entity collect and remit the fee imposed under this chapter.

 

Subd. 3.  Administration.  Unless specifically provided otherwise by this chapter, the audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and administrative provisions of chapters 270C and 289A, that are applicable to taxes imposed under chapter 297A, apply to the fee imposed under this chapter.

 

Subd. 4.  Interest on overpayments.  The commissioner must pay interest on an overpayment refunded or credited to the retailer from the date of payment of the fee until the date the refund is paid or credited.  For purposes of this subdivision, the date of payment is the due date of the return or the date of actual payment of the fee, whichever is later.

 

EFFECTIVE DATE.  This section is effective July 1, 2024.

 

Sec. 12.  [168E.09] DEPOSIT OF PROCEEDS.

 

Subdivision 1.  Costs deducted.  The commissioner must retain an amount that does not exceed the total cost of collecting, administering, and enforcing the retail delivery fee and must deposit the amount in the revenue department service and recovery special revenue fund.

 

Subd. 2.  Deposits.  After deposits under subdivision 1, the commissioner must deposit the balance of proceeds from the retail delivery fee in the transportation advancement account under section 174.49.

 

EFFECTIVE DATE.  This section is effective July 1, 2024.

 

Sec. 13.  Minnesota Statutes 2022, section 171.01, is amended by adding a subdivision to read:

 

Subd. 51.  Veteran with a total service-connected disability.  "Veteran with a total service-connected disability" means a veteran, as defined in section 197.447, who provides to the commissioner satisfactory evidence that:  (1) is issued by the Department of Veterans Affairs, the United States Veterans Administration, or the retirement board of one of the several branches of the armed forces; and (2) demonstrates that the veteran has received a 100 percent total and permanent service-connected disability rating.

 

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

 

Sec. 14.  Minnesota Statutes 2022, section 171.06, subdivision 2, is amended to read:

 

Subd. 2.  Fees.  (a) The fees for a license and Minnesota identification card are as follows:

 

REAL ID Compliant or

 Noncompliant Classified

 Driver's License

D- $21.00 $27.75

C- $25.00 $31.75

B- $32.00 $38.75

A- $40.00 $46.75

REAL ID Compliant or Noncompliant

 Classified Under-21 D.L. 

D- $21.00 $27.75

C- $25.00 $31.75

B- $32.00 $38.75

A- $20.00 $26.75


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Enhanced Driver's License

D- $36.00 $42.75

C- $40.00 $46.75

B- $47.00 $53.75

A- $55.00 $61.75

REAL ID Compliant or Noncompliant

 Instruction Permit

 

 

 

$5.25 $11.25

Enhanced Instruction Permit

 

 

 

$20.25 $26.25

Commercial Learner's Permit

 

 

 

$2.50 $8.50

REAL ID Compliant or Noncompliant

 Provisional License

 

 

 

$8.25 $14.25

Enhanced Provisional License

 

 

 

$23.25 $29.25

Duplicate REAL ID Compliant or

 Noncompliant License or duplicate

 REAL ID Compliant or Noncompliant

 identification card

 

 

 

$6.75 $12.75

Enhanced Duplicate License or enhanced

 duplicate identification card

 

 

 

$21.75 $27.75

REAL ID Compliant or Noncompliant

 Minnesota identification card or REAL

 ID Compliant or Noncompliant Under-21

 Minnesota identification card, other than

 duplicate, except as otherwise provided

 in section 171.07, subdivisions 3 and 3a

 

 

 

$11.25 $17.25

Enhanced Minnesota identification card

 

 

 

$26.25 $32.25

 

From August 1, 2019, to June 30, 2022, The fee is increased by $0.75 for REAL ID compliant or noncompliant classified driver's licenses, REAL ID compliant or noncompliant classified under-21 driver's licenses, and enhanced driver's licenses.

 

(b) In addition to each fee required in paragraph (a), the commissioner shall must collect a surcharge of $2.25.  Surcharges collected under this paragraph must be credited to the driver and vehicle services technology account under section 299A.705.

 

(c) Notwithstanding paragraph (a), an individual who holds a provisional license and has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 169A.35, sections 169A.50 to 169A.53, or section 171.177, (2) convictions for crash-related moving violations, and (3) convictions for moving violations that are not crash related, shall have has a $3.50 credit toward the fee for any classified under-21 driver's license.  "Moving violation" has the meaning given it in section 171.04, subdivision 1.

 

(d) In addition to the driver's license fee required under paragraph (a), the commissioner shall must collect an additional $4 processing fee from each new applicant or individual renewing a license with a school bus endorsement to cover the costs for processing an applicant's initial and biennial physical examination certificate.  The department shall must not charge these applicants any other fee to receive or renew the endorsement.

 

(e) In addition to the fee required under paragraph (a), a driver's license agent may charge and retain a filing fee as provided under section 171.061, subdivision 4.

 

(f) In addition to the fee required under paragraph (a), the commissioner shall must charge a filing fee at the same amount as a driver's license agent under section 171.061, subdivision 4.  Revenue collected under this paragraph must be deposited in the driver and vehicle services operating account under section 299A.705.


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(g) An application for a Minnesota identification card, instruction permit, provisional license, or driver's license, including an application for renewal, must contain a provision that allows the applicant to add to the fee under paragraph (a), a $2 donation for the purposes of public information and education on anatomical gifts under section 171.075.

 

EFFECTIVE DATE.  This section is effective July 1, 2023, and applies to applications made on or after that date.

 

Sec. 15.  Minnesota Statutes 2022, section 171.06, is amended by adding a subdivision to read:

 

Subd. 2c.  Exemption; certain veterans.  For an applicant who is a veteran with a total service-connected disability, the commissioner must not impose:

 

(1) a license or endorsement fee, including fees and surcharges specified under:

 

(i) subdivisions 2 and 2a; and

 

(ii) section 171.02, subdivision 3;

 

(2) a filing fee under subdivision 2 or section 171.061, subdivision 4; or

 

(3) a fee for an identification card under section 171.07, subdivision 3 or 3a.

 

EFFECTIVE DATE.  This section is effective January 1, 2024.

 

Sec. 16.  Minnesota Statutes 2022, section 171.061, subdivision 4, is amended to read:

 

Subd. 4.  Fee; equipment.  (a) The agent may charge and retain a filing fee of $8 for each application. as follows:

 

(1)

New application for a noncompliant, REAL ID-compliant, or enhanced driver's

 license or identification card

 

$16.00

(2)

Renewal application for a noncompliant, REAL ID-compliant, or enhanced

 driver's license or identification card

 

$11.00

 

Except as provided in paragraph (c), the fee shall must cover all expenses involved in receiving, accepting, or forwarding to the department the applications and fees required under sections 171.02, subdivision 3; 171.06, subdivisions 2 and 2a; and 171.07, subdivisions 3 and 3a.

 

(b) The statutory fees and the filing fees imposed under paragraph (a) may be paid by credit card or debit card.  The driver's license agent may collect a convenience fee on the statutory fees and filing fees not greater than the cost of processing a credit card or debit card transaction.  The convenience fee must be used to pay the cost of processing credit card and debit card transactions.  The commissioner shall must adopt rules to administer this paragraph using the exempt procedures of section 14.386, except that section 14.386, paragraph (b), does not apply.

 

(c) The department shall must maintain the photo identification and vision examination equipment for all agents appointed as of January 1, 2000.  Upon the retirement, resignation, death, or discontinuance of an existing agent, and if a new agent is appointed in an existing office pursuant to Minnesota Rules, chapter 7404, and notwithstanding the above or Minnesota Rules, part 7404.0400, the department shall provide and maintain photo identification equipment without additional cost to a newly appointed agent in that office if the office was provided the equipment by the department before January 1, 2000.  All photo identification and vision examination equipment must be compatible with standards established by the department.


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(d) A filing fee retained by the agent employed by a county board must be paid into the county treasury and credited to the general revenue fund of the county.  An agent who is not an employee of the county shall must retain the filing fee in lieu of county employment or salary and is considered an independent contractor for pension purposes, coverage under the Minnesota State Retirement System, or membership in the Public Employees Retirement Association.

 

(e) Before the end of the first working day following the final day of the reporting period established by the department, the agent must forward to the department all applications and fees collected during the reporting period except as provided in paragraph (d).

 

EFFECTIVE DATE.  This section is effective October 1, 2023, and applies to applications made on or after that date. 

 

Sec. 17.  [174.49] TRANSPORTATION ADVANCEMENT ACCOUNT.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Commissioner" means the commissioner of transportation.

 

(c) "Metropolitan counties" means the following counties:  Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

 

Subd. 2.  Transportation advancement account.  A transportation advancement account is established in the special revenue fund.  The account consists of funds under sections 168E.09, subdivision 2, and 297A.94, and as provided by law and any other money donated, allotted, transferred, or otherwise provided to the account.

 

Subd. 3.  Distribution.  The commissioner must distribute or transfer the funds in the transportation advancement account as follows:

 

(1) 36 percent to metropolitan counties in the manner provided under subdivision 5;

 

(2) ten percent to the county state-aid highway fund;

 

(3) 15 percent to the larger cities assistance account under section 162.146, subdivision 1;

 

(4) 27 percent to the small cities assistance account under section 162.145, subdivision 2;

 

(5) 11 percent to the town road account under section 162.081; and

 

(6) one percent to the food delivery support account under section 256.9752, subdivision 1a.

 

Subd. 4.  Metropolitan counties; appropriation.  The amount available in the transportation advancement account under subdivision 3, clause (1), is annually appropriated to the commissioner for distribution to metropolitan counties as provided under subdivision 5.

 

Subd. 5.  Metropolitan counties; allocation formula.  The commissioner must apportion any funds that are specified for distribution under this subdivision as follows:

 

(1) 50 percent of the funds proportionally based on each metropolitan county's share of population, as defined in section 477A.011, subdivision 3, compared to the total population of all metropolitan counties; and


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(2) 50 percent of the funds proportionally based on each metropolitan county's share of money needs, as determined under section 162.07, subdivision 2, compared to the total money needs of all metropolitan counties.

 

Subd. 6.  Metropolitan counties; use of funds.  (a) A metropolitan county must use funds that are received under subdivision 5 as follows:

 

(1) 41.5 percent for active transportation and transportation corridor safety studies;

 

(2) 41.5 percent for:

 

(i) repair, preservation, and rehabilitation of transportation systems; and

 

(ii) roadway replacement to reconstruct, reclaim, or modernize a corridor without adding traffic capacity, except for auxiliary lanes with a length of less than 2,500 feet; and

 

(3) 17 percent for any of the following:

 

(i) transit purposes, including but not limited to operations, maintenance, capital maintenance, demand response service, and assistance to replacement service providers under section 473.388;

 

(ii) complete streets projects, as provided under section 174.75; and

 

(iii) projects, programs, or operations activities that meet the requirements of a mitigation action under section 161.178, subdivision 4.

 

(b) Funds under paragraph (a), clause (3), must supplement and not supplant existing sources of revenue.

 

Sec. 18.  Minnesota Statutes 2022, section 239.761, is amended by adding a subdivision to read:

 

Subd. 10a.  Sustainable aviation fuel.  Sustainable aviation fuel, as defined in section 41A.30, subdivision 1, paragraph (g), must comply with either:

 

(1) ASTM International Standard Specification D7566; or

 

(2) the Fischer-Tropsch provisions of ASTM International Standard Specification D1655, Annex A1.

 

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

 

Sec. 19.  Minnesota Statutes 2022, section 256.9752, is amended by adding a subdivision to read:

 

Subd. 1a.  Food delivery support account; appropriation.  (a) A food delivery support account is established in the special revenue fund.  The account consists of funds under section 174.49, subdivision 2, and as provided by law and any other money donated, allotted, transferred, or otherwise provided to the account.

 

(b) Money in the account is annually appropriated to the commissioner of human services for grants to nonprofit organizations to provide transportation of home-delivered meals, groceries, purchased food, or a combination, to Minnesotans who are experiencing food insecurity and have difficulty obtaining or preparing meals due to limited mobility, disability, age, or resources to prepare their own meals.  A nonprofit organization must have a demonstrated history of providing and distributing food customized for the population that they serve.

 

(c) Grant funds under this subdivision must supplement, but not supplant, any state or federal funding used to provide prepared meals to Minnesotans experiencing food insecurity.


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Sec. 20.  Minnesota Statutes 2022, section 270C.15, is amended to read:

 

270C.15 REVENUE DEPARTMENT SERVICE AND RECOVERY SPECIAL REVENUE FUND.

 

A Revenue Department service and recovery special revenue fund is created for the purpose of recovering the costs of furnishing government data and related services or products, as well as recovering costs associated with collecting local taxes on sales and the retail delivery fee established under chapter 168E.  All money collected under this section is deposited in the Revenue Department service and recovery special revenue fund.  Money in the fund is appropriated to the commissioner to reimburse the department for the costs incurred in administering the tax law or providing the data, service, or product.  Any money paid to the department as a criminal fine for a violation of state revenue law that is designated by the court to fund enforcement of state revenue law is appropriated to this fund.

 

EFFECTIVE DATE.  This section is effective July 1, 2024.

 

Sec. 21.  [290.0688] CREDIT FOR SUSTAINABLE AVIATION FUEL.

 

Subdivision 1.  Definitions.  For purposes of this section, the terms defined in section 41A.30, subdivision 1, have the meanings given, except that "commissioner" means the commissioner of revenue.

 

Subd. 2.  Credit allowed.  A qualifying taxpayer is allowed a credit against the tax imposed by this chapter for sustainable aviation fuel sold for use as fuel in an aircraft departing from an airport in Minnesota.  The credit equals up to the amount and applies to the taxable year indicated on the credit certificate issued to the qualifying taxpayer under section 41A.30.

 

Subd. 3.  Partnerships; multiple owners.  Credits granted to a partnership, a limited liability company taxed as a partnership, an S corporation, or multiple owners of property are passed through to the partners, members, shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or owner based on their share of the entity's assets or as specially allocated in their organizational documents or any other executed agreement, as of the last day of the taxable year.

 

Subd. 4.  Credit refundable.  If the amount of credit that a qualifying taxpayer is allowed under this section exceeds the claimant's tax liability under this chapter, the commissioner must refund the excess to the claimant.

 

Subd. 5.  Audit.  Notwithstanding the credit certificate issued by the commissioner of agriculture under section 41A.30, the commissioner may utilize any audit and examination powers under chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the credit and to assess for the amount of any improperly claimed credit.

 

Subd. 6.  Appropriation.  An amount sufficient to pay the refunds required by this section is appropriated to the commissioner from the general fund.

 

Subd. 7.  Expiration.  This section expires at the same time and on the same terms as section 41A.30, subdivision 7, except that the expiration of this section does not affect the commissioner of revenue's authority to audit or power of examination and assessment for credits claimed under this section.

 

EFFECTIVE DATE.  This section is effective for taxable years beginning after December 31, 2023, for sustainable aviation fuel sold after June 30, 2024, and before July 1, 2030.

 

Sec. 22.  Minnesota Statutes 2022, section 296A.07, subdivision 3, is amended to read:

 

Subd. 3.  Rate of tax.  (a) Subject to paragraph (b), the gasoline excise tax is imposed at the following rates:

 

(1) E85 is taxed at the rate of 17.75 cents per gallon;


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(2) M85 is taxed at the rate of 14.25 cents per gallon; and

 

(3) all other gasoline is taxed at the rate of 25 cents per gallon.

 

(b) Annually on August 1, the commissioner must determine the tax rate applicable to the sale of E85, M85, and all other gasoline subject to tax under this section for the upcoming 12-month period beginning on January 1.  The adjusted rate must equal the current rate, multiplied by one plus the percentage increase, if any, in the Minnesota Highway Construction Cost Index for the reference year.  The tax rate must be rounded to the nearest tenth of a cent.  Each of the tax rates for E85, M85, and all other gasoline must not be lower than the respective rates specified in paragraph (a).  Beginning with the calculation on August 1, 2025, the percentage change in each of the tax rates for E85, M85, and all other gasoline as a result of the requirements under this paragraph must not exceed three percent.

 

(c) For purposes of this subdivision:

 

(1) the Minnesota Highway Construction Cost Index is as determined by the commissioner of transportation; and

 

(2) "reference year" means the 12-month period ending on June 30 two years prior to the year in which the calculation is made.

 

EFFECTIVE DATE.  This section is effective July 1, 2023, and applies for taxes imposed on or after January 1, 2024.

 

Sec. 23.  Minnesota Statutes 2022, section 296A.08, subdivision 2, is amended to read:

 

Subd. 2.  Rate of tax.  (a) Subject to paragraph (b), the special fuel excise tax is imposed at the following rates:

 

(a) (1) liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.;

 

(b) (2) liquefied natural gas is taxed at the rate of 15 cents per gallon.;

 

(c) (3) compressed natural gas is taxed at the rate of $1.974 per thousand cubic feet; or 25 cents per gasoline equivalent.  For purposes of this paragraph, "gasoline equivalent," as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural gas or 126.67 cubic feet.; and

 

(d) (4) all other special fuel is taxed at the same rate as the gasoline excise tax as specified in section 296A.07, subdivision 2.

 

(b) Annually on August 1, the commissioner must determine the tax rate applicable to the sale of E85, M85, and all other gasoline subject to tax under this section for the upcoming 12-month period beginning on January 1.  The rate must be adjusted as provided in section 296A.07, subdivision 3, paragraph (b).  The tax rate must be rounded to the nearest tenth of a cent.  Each of the tax rates for liquefied natural gas or propane, liquefied natural gas, compressed natural gas, and all other special fuel must not be lower than the respective rates specified in paragraph (a).

 

(c) The tax is payable in the form and manner prescribed by the commissioner.

 

(d) For purposes of this subdivision, "gasoline equivalent," as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural gas or 126.67 cubic feet.

 

EFFECTIVE DATE.  This section is effective July 1, 2023, and applies for taxes imposed on or after January 1, 2024.


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Sec. 24.  Minnesota Statutes 2022, section 297A.64, subdivision 1, is amended to read:

 

Subdivision 1.  Tax imposed.  (a) A tax is imposed on the lease or rental in this state for not more than 28 days of a passenger automobile as defined in section 168.002, subdivision 24, a van as defined in section 168.002, subdivision 40, or a pickup truck as defined in section 168.002, subdivision 26.  The rate of tax is 9.2 percent of the sales price.  The tax applies whether or not the vehicle is licensed in the state.

 

(b) The provisions of paragraph (a) do not apply to the vehicles of a nonprofit corporation or similar entity consisting of individual or group members who pay the organization for the use of a motor vehicle if the organization: 

 

(1) owns, leases, or operates a fleet of vehicles of the type subject to the tax under this subdivision that are available to its members for use, priced on the basis of intervals of one hour or less;

 

(2) parks its vehicles in the public right-of-way or at unstaffed, self-service locations that are accessible at any time of the day; and

 

(3) maintains its vehicles, insures its vehicles on behalf of its members, and purchases fuel for its fleet.

 

EFFECTIVE DATE.  This section is effective for sales and purchases made after June 30, 2023. 

 

Sec. 25.  Minnesota Statutes 2022, section 297A.64, subdivision 2, is amended to read:

 

Subd. 2.  Fee imposed.  (a) A fee equal to five percent of the sales price is imposed on leases or rentals of vehicles subject to the tax under subdivision 1.  The lessor on the invoice to the customer may designate the fee as "a fee imposed by the State of Minnesota for the registration of rental cars."

 

(b) The provisions of this subdivision do not apply to the vehicles of a nonprofit corporation or similar entity, consisting of individual or group members who pay the organization for the use of a motor vehicle, if the organization:

 

(1) owns or leases a fleet of vehicles of the type subject to the tax under subdivision 1 that are available to its members for use, priced on the basis of intervals of one hour or less;

 

(2) parks its vehicles in the public right-of-way or at unstaffed, self-service locations that are accessible at any time of the day; and

 

(3) maintains its vehicles, insures its vehicles on behalf of its members, and purchases fuel for its fleet; and.

 

(4) does not charge usage rates that decline on a per unit basis, whether specified based on distance or time.

 

EFFECTIVE DATE.  This section is effective for sales and purchases made after June 30, 2023. 

 

Sec. 26.  Minnesota Statutes 2022, section 297A.71, is amended by adding a subdivision to read:

 

Subd. 54.  Sustainable aviation fuel facilities.  (a) Materials and supplies used or consumed in and equipment incorporated into the construction, reconstruction, or improvement of a facility located in Minnesota that produces or blends sustainable aviation fuel, as defined in section 41A.30, subdivision 1, is exempt.

 

(b) The tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner as provided for projects under section 297A.75, subdivision 1, clause (1).


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(c) For a project, a portion of which is not used to produce or blend sustainable aviation fuel, the amount of purchases that are exempt under this subdivision must be determined by multiplying the total purchases, as specified in paragraph (a), by the ratio of:

 

(1) the capacity to generate sustainable aviation fuel either through production or blending; and

 

(2) the capacity to generate all fuels.

 

(d) This subdivision expires July 1, 2034.  The expiration does not affect refunds due for sales and purchases made prior to July 1, 2034.

 

EFFECTIVE DATE.  This section is effective for sales and purchases made after June 30, 2027, and before July 1, 2034.

 

Sec. 27.  Minnesota Statutes 2022, section 297A.94, is amended to read:

 

297A.94 DEPOSIT OF REVENUES.

 

(a) Except as provided in this section, the commissioner shall deposit the revenues, including interest and penalties, derived from the taxes imposed by this chapter in the state treasury and credit them to the general fund.

 

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic account in the special revenue fund if:

 

(1) the taxes are derived from sales and use of property and services purchased for the construction and operation of an agricultural resource project; and

 

(2) the purchase was made on or after the date on which a conditional commitment was made for a loan guaranty for the project under section 41A.04, subdivision 3.

 

The commissioner of management and budget shall certify to the commissioner the date on which the project received the conditional commitment.  The amount deposited in the loan guaranty account must be reduced by any refunds and by the costs incurred by the Department of Revenue to administer and enforce the assessment and collection of the taxes.

 

(c) The commissioner shall deposit the revenues, including interest and penalties, derived from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

 

(1) first to the general obligation special tax bond debt service account in each fiscal year the amount required by section 16A.661, subdivision 3, paragraph (b); and

 

(2) after the requirements of clause (1) have been met, the balance to the general fund.

 

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit in the state treasury the revenues collected under section 297A.64, subdivision 1, including interest and penalties and minus refunds, and credit them to the highway user tax distribution fund.


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(e) The commissioner shall deposit the revenues, including interest and penalties, collected under section 297A.64, subdivision 5, in the state treasury and credit them to the general fund.  By July 15 of each year the commissioner shall transfer to the highway user tax distribution fund an amount equal to the excess fees collected under section 297A.64, subdivision 5, for the previous calendar year.

 

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit of revenues under paragraph (d), the commissioner shall deposit into the state treasury and credit to the highway user tax distribution fund an amount equal to the estimated revenues derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or rental for not more than 28 days of rental motor vehicles subject to section 297A.64.  The commissioner shall estimate the amount of sales tax revenue deposited under this paragraph based on the amount of revenue deposited under paragraph (d).

 

(g) The commissioner shall deposit an amount of the remittances monthly into the state treasury and credit them to the highway user tax distribution fund as a portion of the estimated amount of taxes collected from the sale and purchase of motor vehicle repair and replacement parts in that month.  The monthly deposit amount is $12,137,000.  The commissioner must deposit the revenues derived from the taxes imposed under section 297A.62, subdivision 1, on the sale and purchase of motor vehicle repair and replacement parts in the state treasury and credit:

 

(1) 43.5 percent in each fiscal year to the highway user tax distribution fund;

 

(2) a percentage to the transportation advancement account under section 174.49 as follows:

 

(i) 3.5 percent in fiscal year 2024;

 

(ii) 4.5 percent in fiscal year 2025;

 

(iii) 5.5 percent in fiscal year 2026;

 

(iv) 7.5 percent in fiscal year 2027;

 

(v) 14.5 percent in fiscal year 2028;

 

(vi) 21.5 percent in fiscal year 2029;

 

(vii) 28.5 percent in fiscal year 2030;

 

(viii) 36.5 percent in fiscal year 2031;

 

(ix) 44.5 percent in fiscal year 2032; and

 

(x) 56.5 percent in fiscal year 2033 and thereafter; and

 

(3) the remainder in each fiscal year to the general fund.

 

For purposes of this paragraph, "motor vehicle" has the meaning given in section 297B.01, subdivision 11, and "motor vehicle repair and replacement parts" includes (i) all parts, tires, accessories, and equipment incorporated into or affixed to the motor vehicle as part of the motor vehicle maintenance and repair, and (ii) paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor vehicle maintenance or repair.  For purposes of this paragraph, "tire" means any tire of the type used on highway vehicles, if wholly or partially made of rubber and if marked according to federal regulations for highway use.


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(h) 72.43 percent of the revenues, including interest and penalties, transmitted to the commissioner under section 297A.65, must be deposited by the commissioner in the state treasury as follows:

 

(1) 50 percent of the receipts must be deposited in the heritage enhancement account in the game and fish fund, and may be spent only on activities that improve, enhance, or protect fish and wildlife resources, including conservation, restoration, and enhancement of land, water, and other natural resources of the state;

 

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may be spent only for state parks and trails;

 

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may be spent only on metropolitan park and trail grants;

 

(4) three percent of the receipts must be deposited in the natural resources fund, and may be spent only on local trail grants; and

 

(5) two percent of the receipts must be deposited in the natural resources fund, and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory, and the Duluth Zoo.

 

(i) The revenue dedicated under paragraph (h) may not be used as a substitute for traditional sources of funding for the purposes specified, but the dedicated revenue shall supplement traditional sources of funding for those purposes.  Land acquired with money deposited in the game and fish fund under paragraph (h) must be open to public hunting and fishing during the open season, except that in aquatic management areas or on lands where angling easements have been acquired, fishing may be prohibited during certain times of the year and hunting may be prohibited.  At least 87 percent of the money deposited in the game and fish fund for improvement, enhancement, or protection of fish and wildlife resources under paragraph (h) must be allocated for field operations.

 

(j) The commissioner must deposit the revenues, including interest and penalties minus any refunds, derived from the sale of items regulated under section 624.20, subdivision 1, that may be sold to persons 18 years old or older and that are not prohibited from use by the general public under section 624.21, in the state treasury and credit:

 

(1) 25 percent to the volunteer fire assistance grant account established under section 88.068;

 

(2) 25 percent to the fire safety account established under section 297I.06, subdivision 3; and

 

(3) the remainder to the general fund.

 

For purposes of this paragraph, the percentage of total sales and use tax revenue derived from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be sold to persons 18 years old or older and are not prohibited from use by the general public under section 624.21, is a set percentage of the total sales and use tax revenues collected in the state, with the percentage determined under Laws 2017, First Special Session chapter 1, article 3, section 39.

 

(k) The revenues deposited under paragraphs (a) to (j) do not include the revenues, including interest and penalties, generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as provided under the Minnesota Constitution, article XI, section 15.

 

Sec. 28.  Minnesota Statutes 2022, section 297A.99, subdivision 1, is amended to read:

 

Subdivision 1.  Authorization; scope.  (a) A political subdivision of this state may impose a general sales tax (1) under section 297A.9915, (2) under section 297A.992, (2) (3) under section 297A.993, (3) (4) if permitted by special law, or (4) (5) if the political subdivision enacted and imposed the tax before January 1, 1982, and its predecessor provision.


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(b) This section governs the imposition of a general sales tax by the political subdivision.  The provisions of this section preempt the provisions of any special law:

 

(1) enacted before June 2, 1997, or

 

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law provision from this section's rules by reference.

 

(c) This section does not apply to or preempt a sales tax on motor vehicles.  Beginning July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles unless it is imposed under section 297A.993.

 

(d) A political subdivision may not advertise or expend funds for the promotion of a referendum to support imposing a local sales tax and may only spend funds related to imposing a local sales tax to:

 

(1) conduct the referendum;

 

(2) disseminate information included in the resolution adopted under subdivision 2, but only if the disseminated information includes a list of specific projects and the cost of each individual project;

 

(3) provide notice of, and conduct public forums at which proponents and opponents on the merits of the referendum are given equal time to express their opinions on the merits of the referendum;

 

(4) provide facts and data on the impact of the proposed local sales tax on consumer purchases; and

 

(5) provide facts and data related to the individual programs and projects to be funded with the local sales tax.

 

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

 

Sec. 29.  [297A.9915] REGIONAL TRANSPORTATION SALES AND USE TAX.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Metropolitan area" means the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

 

(c) "Metropolitan Council" or "council" means the Metropolitan Council established by section 473.123.

 

(d) "Regional transportation sales tax" means the regional transportation sales and use tax imposed under this section.

 

Subd. 2.  Sales tax imposition; rate.  Notwithstanding section 473.123, subdivision 1, the Metropolitan Council must impose a regional transportation sales and use tax at a rate of three-quarters of one percent on retail sales and uses taxable under this chapter made in the metropolitan area or to a destination in the metropolitan area.

 

Subd. 3.  Administration; collection; enforcement.  Except as otherwise provided in this section, the provisions of section 297A.99, subdivisions 4, and 6 to 12a, govern the administration, collection, and enforcement of the regional transportation sales tax.

 

Subd. 4.  Deposit.  Proceeds of the regional transportation sales tax must be allocated as follows:

 

(1) 83 percent to the Metropolitan Council for the purposes specified under section 473.4465; and


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(2) 17 percent to metropolitan counties, as defined in section 174.49, subdivision 1, in the manner provided under section 174.49, subdivision 5.

 

Subd. 5.  Revenue bonds.  (a) In addition to other authority granted in this section, and notwithstanding section 473.39, subdivision 7, or any other law to the contrary, the council may, by resolution, authorize the sale and issuance of revenue bonds, notes, or obligations to provide funds to (1) implement the council's transit capital improvement program, and (2) refund bonds issued under this subdivision.

 

(b) The bonds are payable from and secured by a pledge of all or part of the revenue received under subdivision 4, clause (1), and associated investment earnings on debt proceeds.  The council may, by resolution, authorize the issuance of the bonds as general obligations of the council.  The bonds must be sold, issued, and secured in the manner provided in chapter 475, and the council has the same powers and duties as a municipality and its governing body in issuing bonds under chapter 475, except that no election is required and the net debt limitations in chapter 475 do not apply to such bonds.  The proceeds of the bonds may also be used to fund necessary reserves and to pay credit enhancement fees, issuance costs, and other financing costs during the life of the debt.

 

(c) The bonds may be secured by a bond resolution, or a trust indenture entered into by the council with a corporate trustee within or outside the state, which must define the revenues and bond proceeds pledged for the payment and security of the bonds.  The pledge must be a valid charge on the revenues received under section 297A.99, subdivision 11.  Neither the state, nor any municipality or political subdivision except the council, nor any member or officer or employee of the council, is liable on the obligations.  No mortgage or security interest in any tangible real or personal property is granted to the bondholders or the trustee, but they have a valid security interest in the revenues and bond proceeds received by the council and pledged to the payment of the bonds.  In the bond resolution or trust indenture, the council may make such covenants as it determines to be reasonable for the protection of the bondholders.

 

EFFECTIVE DATE; APPLICATION.  This section is effective the day following final enactment for sales and purchases made on or after October 1, 2023, and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

 

Sec. 30.  Minnesota Statutes 2022, section 297B.02, subdivision 1, is amended to read:

 

Subdivision 1.  Rate.  (a) There is imposed an excise tax of 6.5 6.875 percent on the purchase price of any motor vehicle purchased or acquired, either in or outside of the state of Minnesota, which is required to be registered under the laws of this state.

 

(b) The excise tax is also imposed on the purchase price of motor vehicles purchased or acquired on Indian reservations when the tribal council has entered into a sales tax on motor vehicles refund agreement with the state of Minnesota.

 

EFFECTIVE DATE.  This section is effective for sales and purchases made on or after July 1, 2023.

 

Sec. 31.  Minnesota Statutes 2022, section 297B.03, is amended to read:

 

297B.03 EXEMPTIONS.

 

There is specifically exempted from the provisions of this chapter and from computation of the amount of tax imposed by it the following:


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(1) purchase or use, including use under a lease purchase agreement or installment sales contract made pursuant to section 465.71, of any motor vehicle by the United States and its agencies and instrumentalities and by any person described in and subject to the conditions provided in section 297A.67, subdivision 11;

 

(2) purchase or use of any motor vehicle by any person who was a resident of another state or country at the time of the purchase and who subsequently becomes a resident of Minnesota, provided the purchase occurred more than 60 days prior to the date such person began residing in the state of Minnesota and the motor vehicle was registered in the person's name in the other state or country;

 

(3) purchase or use of any motor vehicle by any person making a valid election to be taxed under the provisions of section 297A.90;

 

(4) purchase or use of any motor vehicle previously registered in the state of Minnesota when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Code, as amended through December 16, 2016;

 

(5) purchase or use of any vehicle owned by a resident of another state and leased to a Minnesota-based private or for-hire carrier for regular use in the transportation of persons or property in interstate commerce provided the vehicle is titled in the state of the owner or secured party, and that state does not impose a sales tax or sales tax on motor vehicles used in interstate commerce;

 

(6) purchase or use of a motor vehicle by a private nonprofit or public educational institution for use as an instructional aid in automotive training programs operated by the institution.  "Automotive training programs" includes motor vehicle body and mechanical repair courses but does not include driver education programs;

 

(7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10 when that vehicle is equipped and specifically intended for emergency response or for providing ambulance service;

 

(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001, subdivision 2, as a bookmobile or library delivery vehicle;

 

(9) purchase of a ready-mixed concrete truck;

 

(10) purchase or use of a motor vehicle by a town for use exclusively for road maintenance, including snowplows and dump trucks, but not including automobiles, vans, or pickup trucks;

 

(11) purchase or use of a motor vehicle by a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, except a public school, university, or library, but only if the vehicle is:

 

(i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a passenger automobile, as defined in section 168.002, if the automobile is designed and used for carrying more than nine persons including the driver; and

 

(ii) intended to be used primarily to transport tangible personal property or individuals, other than employees, to whom the organization provides service in performing its charitable, religious, or educational purpose;

 

(12) purchase of a motor vehicle for use by a transit provider exclusively to provide transit service is exempt if the transit provider is either (i) receiving financial assistance or reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 473.388, or 473.405;


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(13) purchase or use of a motor vehicle by a qualified business, as defined in section 469.310, located in a job opportunity building zone, if the motor vehicle is principally garaged in the job opportunity building zone and is primarily used as part of or in direct support of the person's operations carried on in the job opportunity building zone.  The exemption under this clause applies to sales, if the purchase was made and delivery received during the duration of the job opportunity building zone.  The exemption under this clause also applies to any local sales and use tax;

 

(14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own program from a charitable organization that is:

 

(i) described in section 501(c)(3) of the Internal Revenue Code; and

 

(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and

 

(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the provision of medical or dental services by a federally qualified health center, as defined under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget Reconciliation Act of 1990.; and

 

(16) purchase of a motor vehicle by a veteran having a total service-connected disability, as defined in section 171.01, subdivision 51.

 

EFFECTIVE DATE.  This section is effective for sales and purchases made after June 30, 2024.

 

Sec. 32.  Minnesota Statutes 2022, section 297B.09, is amended to read:

 

297B.09 ALLOCATION OF REVENUE.

 

Subdivision 1.  Deposit of revenues.  (a) Money collected and received under this chapter must be deposited as provided in this subdivision. as follows:

 

(b) (1) 60 percent of the money collected and received must be deposited in the highway user tax distribution fund, 36 percent must be deposited;

 

(2) 34.3 percent in the metropolitan area transit account under section 16A.88,; and four percent must be deposited

 

(3) 5.7 percent in the greater Minnesota transit account under section 16A.88.

 

(c) (b) It is the intent of the legislature that the allocations under paragraph (b) remain unchanged for fiscal year 2012 2024 and all subsequent fiscal years.

 

Sec. 33.  Minnesota Statutes 2022, section 473.4051, is amended to read:

 

473.4051 LIGHT RAIL TRANSIT GUIDEWAYS AND BUSWAYS; CONSTRUCTION AND OPERATION.

 

Subdivision 1.  Light rail transit; operator.  The council shall must operate all light rail transit facilities and services located in the metropolitan area upon completion of construction of the facilities and the commencement of revenue service using the facilities.  The council may not allow the commencement of revenue service until after an appropriate period of acceptance testing to ensure safe and satisfactory performance.  In assuming the operation of the system, the council must comply with section 473.415.  The council shall must coordinate operation of the light


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rail transit system with bus service to avoid duplication of service on a route served by light rail transit and to ensure the widest possible access to light rail transit lines in both suburban and urban areas by means of a feeder bus system.

 

Subd. 2.  Guideway and busway; operating costs.  (a) After operating revenue and federal money have been used to pay for light rail transit operations, 50 percent of the remaining operating costs must be paid by the state.

 

(b) Notwithstanding paragraph (a), all operating and ongoing capital maintenance costs must be paid from nonstate sources for a segment of a light rail transit line or line extension project that formally entered the engineering phase of the Federal Transit Administration's "New Starts" capital investment grant program between August 1, 2016, and December 31, 2016.

 

(a) After operating revenue, federal funds, and state funds are used for operations of a guideway or busway, as the terms are defined in section 473.4485, subdivision 1, the council must pay all remaining operating costs from sales tax revenue, as defined in section 473.4465, subdivision 1.

 

(b) The requirements under paragraph (a) do not apply to the costs of Northstar Commuter Rail attributed to operations outside of a metropolitan county.

 

Subd. 2a.  Guideway and busway; capital maintenance.  (a) The council must pay all ongoing capital maintenance costs from one or more of:  available federal funds; sales tax revenue, as defined in section 473.4465, subdivision 1; and proceeds from certificates of indebtedness, bonds, or other obligations under section 473.39.

 

(b) For purposes of this subdivision, "capital maintenance" includes routine maintenance, capital maintenance, and maintenance in a state of good repair.

 

Subd. 3.  Light rail transit; capital costs.  State money may not be used to pay more than ten percent of the total capital cost of a light rail transit project.

 

EFFECTIVE DATE; APPLICATION.  This section is effective October 1, 2023, and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

 

Sec. 34.  [473.4465] REGIONAL TRANSPORTATION SALES AND USE TAX USES.

 

Subdivision 1.  Definition.  For purposes of this section, "sales tax revenue" means the portion of revenue from the regional transportation sales and use tax under section 297A.9915 that is allocated to the council for purposes of this section.

 

Subd. 2.  Use of funds; Metropolitan Council.  (a) Sales tax revenue is available as follows:

 

(1) five percent for active transportation, as determined by the Transportation Advisory Board under subdivision 3; and

 

(2) 95 percent for transit system purposes under sections 473.371 to 473.452, including but not limited to operations, maintenance, and capital projects.

 

(b) The council must expend a portion of sales tax revenue in each of the following categories:

 

(1) improvements to regular route bus service levels;


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(2) improvements related to transit safety, including additional transit officials, as defined under section 473.4075;

 

(3) maintenance and improvements to bus accessibility at transit stops and transit centers;

 

(4) transit shelter replacement and improvements under section 473.41;

 

(5) planning and project development for expansion of arterial bus rapid transit lines;

 

(6) operations and capital maintenance of arterial bus rapid transit;

 

(7) planning and project development for expansion of highway bus rapid transit and bus guideway lines;

 

(8) operations and capital maintenance of highway bus rapid transit and bus guideways;

 

(9) zero-emission bus procurement and associated costs in conformance with the zero-emission and electric transit vehicle transition plan under section 473.3927;

 

(10) demand response microtransit service provided by the council;

 

(11) financial assistance to replacement service providers under section 473.388, to provide for service, vehicle purchases, and capital investments related to demand response microtransit service;

 

(12) financial assistance to political subdivisions and tax-exempt organizations under section 501(c)(3) of the Internal Revenue Code for active transportation; and

 

(13) wage adjustments for Metro Transit hourly operations employees.

 

Subd. 3.  Use of funds; active transportation.  (a) Sales tax revenue allocated to the Transportation Advisory Board under subdivision 2, clause (1), is for grants to support active transportation within the metropolitan area.

 

(b) The Transportation Advisory Board must establish eligibility requirements and a selection process to provide the grant awards.  The process must include:  solicitation; evaluation and prioritization, including technical review, scoring, and ranking; project selection; and award of funds.  To the extent practicable and subject to paragraph (c), the process must align with procedures and requirements established for allocation of other sources of funds.

 

(c) The selection process must include criteria and prioritization of projects based on:

 

(1) the project's inclusion in a municipal or regional nonmotorized transportation system plan;

 

(2) the extent to which policies or practices of the political subdivision encourage and promote complete streets planning, design, and construction;

 

(3) the extent to which the project supports connections between communities and to key destinations within a community;

 

(4) identified barriers or deficiencies in the nonmotorized transportation system;

 

(5) identified safety or health benefits;


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(6) geographic equity in project benefits, with an emphasis on communities that are historically and currently underrepresented in local or regional planning; and

 

(7) the ability of a grantee to maintain the active transportation infrastructure following project completion.

 

Subd. 4.  Use of funds; metropolitan counties.  A metropolitan county must use revenue from the regional transportation sales and use tax under section 297A.9915 in conformance with the requirements under section 174.49, subdivision 6.

 

Subd. 5.  Prohibition.  (a) The council is prohibited from expending sales tax revenue on the Southwest light rail transit (Green Line Extension) project.

 

(b) Paragraph (a) expires on the date of expiration of the Metropolitan Governance Task Force as specified under article 4, section 123, subdivision 11.

 

Subd. 6.  Tracking and information.  (a) The council must maintain separate financial information on sales tax revenue that includes:

 

(1) a summary of annual revenue and expenditures, including but not limited to balances and anticipated revenue in the forecast period under section 16A.103; and

 

(2) for active transportation under subdivision 3 and each of the categories specified under subdivision 2 in the most recent prior three fiscal years:

 

(i) specification of annual expenditures; and

 

(ii) an overview of the projects or services.

 

(b) The council must publish the information required under paragraph (a) on the council's website.

 

EFFECTIVE DATE; APPLICATION.  This section is effective October 1, 2023, and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

 

Sec. 35.  GUIDEWAY OR BUSWAY; OPERATING COSTS.

 

(a) For purposes of this section:

 

(1) "guideway" and "busway" have the meanings given in Minnesota Statutes, section 473.4485, subdivision 1; and

 

(2) "net operating costs" are after fare revenue and federal operating assistance.

 

(b) By September 30, 2023, a political subdivision must pay to the Metropolitan Council:

 

(1) all outstanding obligations through September 30, 2023, under the terms of an executed master operating funding agreement for each guideway or busway; and

 

(2) 50 percent of the net operating costs from December 1, 2021, through September 30, 2023, for each guideway or busway that:  (i) began revenue service after December 1, 2021; and (ii) is not covered by an executed master operating funding agreement.


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(c) As of October 1, 2023, all agreements between the Metropolitan Council and other political subdivisions under which the other political subdivisions provide funds to the Metropolitan Council for guideway or busway operating costs are terminated.

 

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

 

ARTICLE 4

TRANSPORTATION FINANCE AND POLICY

 

Section 1.  Minnesota Statutes 2022, section 3.9741, subdivision 5, is amended to read:

 

Subd. 5.  State Data security; account,; appropriation.  (a) The data security account is created in the special revenue fund.  Receipts credited to the account are annually appropriated to the legislative auditor for the purpose of oversight relating to security of data stored and transmitted by state systems, including to:

 

(b) Subject to available funds appropriated under paragraph (a), the legislative auditor shall:

 

(1) review and audit the audit reports of subscribers and requesters submitted under section 168.327, subdivision 6, including but not limited to assessing compliance with section 171.12, subdivision 7b, paragraph (d), and producing findings and opinions; and

 

(2) in collaboration with the commissioner and affected subscribers and requesters, recommend corrective action plans to remediate any deficiencies identified under clause (1); and

 

(3) (2) review and audit driver records subscription services and bulk data practices of the Department of Public Safety, including identifying any deficiencies and making recommendations to the commissioner.

 

(c) The legislative auditor shall submit any reports, findings, and recommendations under this subdivision to the legislative commission on data practices.

 

Sec. 2.  [4.076] ADVISORY COUNCIL ON TRAFFIC SAFETY.

 

Subdivision 1.  Definition.  For purposes of this section, "advisory council" means the Advisory Council on Traffic Safety established in this section.

 

Subd. 2.  Establishment.  (a) The Advisory Council on Traffic Safety is established to advise, consult with, assist in planning coordination, and make program recommendations to the commissioners of public safety, transportation, and health on the development and implementation of projects and programs intended to improve traffic safety on all Minnesota road systems.

 

(b) The advisory council serves as the lead for the state Toward Zero Deaths program.

 

Subd. 3.  Membership; chair.  (a) The advisory council consists of the following members:

 

(1) the chair, which is filled on a two-year rotating basis by a designee from:

 

(i) the Office of Traffic Safety in the Department of Public Safety;

 

(ii) the Office of Traffic Engineering in the Department of Transportation; and

 

(iii) the Injury and Violence Prevention Section in the Department of Health;


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(2) two vice chairs, which must be filled by the two designees who are not currently serving as chair of the advisory council under clause (1);

 

(3) the statewide Toward Zero Deaths coordinator;

 

(4) a regional coordinator from the Toward Zero Deaths program;

 

(5) the chief of the State Patrol or a designee;

 

(6) the state traffic safety engineer in the Department of Transportation or a designee;

 

(7) a law enforcement liaison from the Department of Public Safety;

 

(8) a representative from the Department of Human Services;

 

(9) a representative from the Department of Education;

 

(10) a representative from the Council on Disability;

 

(11) a representative for Tribal governments;

 

(12) a representative from the Center for Transportation Studies at the University of Minnesota;

 

(13) a representative from the Minnesota Chiefs of Police Association;

 

(14) a representative from the Minnesota Sheriffs' Association;

 

(15) a representative from the Minnesota Safety Council;

 

(16) a representative from AAA Minnesota;

 

(17) a representative from the Minnesota Trucking Association;

 

(18) a representative from the Insurance Federation of Minnesota;

 

(19) a representative from the Association of Minnesota Counties;

 

(20) a representative from the League of Minnesota Cities;

 

(21) the American Bar Association State Judicial Outreach Liaison;

 

(22) a representative from the City Engineers Association of Minnesota;

 

(23) a representative from the Minnesota County Engineers Association;

 

(24) a representative from the Bicycle Alliance of Minnesota;

 

(25) two individuals representing vulnerable road users, including pedestrians, bicyclists, and other operators of a personal conveyance;

 

(26) a representative from Minnesota Operation Lifesaver;


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(27) a representative from the Minnesota Driver and Traffic Safety Education Association;

 

(28) a representative from the Minnesota Association for Pupil Transportation;

 

(29) a representative from the State Trauma Advisory Council;

 

(30) a person representing metropolitan planning organizations; and

 

(31) a person representing contractors engaged in construction and maintenance of highways and other infrastructure.

 

(b) The commissioners of public safety and transportation must jointly appoint the advisory council members under paragraph (a), clauses (11), (25), (30), and (31).

 

Subd. 4.  Duties.  The advisory council must:

 

(1) advise the governor and heads of state departments and agencies on policies, programs, and services affecting traffic safety;

 

(2) advise the appropriate representatives of state departments on the activities of the Toward Zero Deaths program, including but not limited to educating the public about traffic safety;

 

(3) encourage state departments and other agencies to conduct needed research in the field of traffic safety;

 

(4) review recommendations of the subcommittees and working groups;

 

(5) review and comment on all grants dealing with traffic safety and on the development and implementation of state and local traffic safety plans; and

 

(6) make recommendations on safe road zone safety measures under section 169.065.

 

Subd. 5.  Administration.  (a) The Office of Traffic Safety in the Department of Public Safety, in cooperation with the Departments of Transportation and Health, must serve as the host agency for the advisory council and must manage the administrative and operational aspects of the advisory council's activities.  The commissioner of public safety must perform financial management on behalf of the council.

 

(b) The advisory council must meet no less than four times per year, or more frequently as determined by the chair, a vice chair, or a majority of the council members.  The advisory council is subject to chapter 13D.

 

(c) The chair must regularly report to the respective commissioners on the activities of the advisory council and on the state of traffic safety in Minnesota.

 

(d) The terms, compensation, and appointment of members are governed by section 15.059.

 

(e) The advisory council may appoint subcommittees and working groups.  Subcommittees must consist of council members.  Working groups may include nonmembers.  Nonmembers on working groups must be compensated pursuant to section 15.059, subdivision 3, only for expenses incurred for working group activities.


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Sec. 3.  Minnesota Statutes 2022, section 13.69, subdivision 1, is amended to read:

 

Subdivision 1.  Classifications.  (a) The following government data of the Department of Public Safety are private data:

 

(1) medical data on driving instructors, licensed drivers, and applicants for parking certificates and special license plates issued to physically disabled persons;

 

(2) other data on holders of a disability certificate under section 169.345, except that (i) data that are not medical data may be released to law enforcement agencies, and (ii) data necessary for enforcement of sections 169.345 and 169.346 may be released to parking enforcement employees or parking enforcement agents of statutory or home rule charter cities and towns;

 

(3) Social Security numbers in driver's license and motor vehicle registration records, except that Social Security numbers must be provided to the Department of Revenue for purposes of tax administration, the Department of Labor and Industry for purposes of workers' compensation administration and enforcement, the judicial branch for purposes of debt collection, and the Department of Natural Resources for purposes of license application administration, and except that the last four digits of the Social Security number must be provided to the Department of Human Services for purposes of recovery of Minnesota health care program benefits paid; and

 

(4) data on persons listed as standby or temporary custodians under section 171.07, subdivision 11, except that the data must be released to:

 

(i) law enforcement agencies for the purpose of verifying that an individual is a designated caregiver; or

 

(ii) law enforcement agencies who state that the license holder is unable to communicate at that time and that the information is necessary for notifying the designated caregiver of the need to care for a child of the license holder.; and

 

(5) race and ethnicity data on driver's license holders and identification card holders under section 171.06, subdivision 3.  The Department of Public Safety Office of Traffic Safety is authorized to receive race and ethnicity data from Driver and Vehicle Services for only the purposes of research, evaluation, and public reports.

 

The department may release the Social Security number only as provided in clause (3) and must not sell or otherwise provide individual Social Security numbers or lists of Social Security numbers for any other purpose.

 

(b) The following government data of the Department of Public Safety are confidential data:  data concerning an individual's driving ability when that data is received from a member of the individual's family.

 

EFFECTIVE DATE.  This section is effective for driver's license and identification card applications received on or after January 1, 2024.

 

Sec. 4.  Minnesota Statutes 2022, section 13.6905, is amended by adding a subdivision to read:

 

Subd. 37.  Oil and other hazardous substances transportation data.  (a) Certain data on oil and other hazardous substances transported by railroads are governed by section 219.055, subdivision 9.

 

(b) Certain data on oil and other hazardous substances transportation incident reviews are governed by section 299A.55, subdivision 5.


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Sec. 5.  Minnesota Statutes 2022, section 115E.042, is amended by adding a subdivision to read:

 

Subd. 1a.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b) "Exercise" means an activity or training to evaluate responsibilities, roles, and response plans for the discharge of oil or hazardous substances and includes but is not limited to walkthroughs, tabletop exercises, or functional exercises.

 

(c) "Full-scale exercise" means training activities to evaluate responsibilities, roles, and response plans for a confirmed discharge or worst-case discharge of oil or hazardous substances and includes utilizing, as much as practicable, the equipment, personnel, and coordinated resources required under section 115E.042, subdivision 4. 

 

(d) "Functional exercise" means a guided session where a simulated operational environment trains and evaluates specific personnel, procedures, or resources on scenarios relating to the discharge of oil or hazardous substances.

 

(e) "Tabletop exercise" means a guided session where the discussion addresses topics, including but not limited to the roles and responsibilities of a rail carrier and its personnel in response to a confirmed discharge of oil or hazardous substances.

 

(f) "Walkthrough" means drills and training designed to familiarize railroad personnel with the response plans required under chapter 115E and the response requirements to a confirmed discharge under this section.

 

Sec. 6.  Minnesota Statutes 2022, section 115E.042, subdivision 2, is amended to read:

 

Subd. 2.  Training.  (a) Each railroad must offer training to each fire department and each local organization for emergency management under section 12.25 having jurisdiction along the route of unit trains.  Initial training under this subdivision must be offered to each fire department by June 30, 2016, and routes over which the railroad transports oil or other hazardous substances.  Refresher training must be offered to each fire department and local organization for emergency management at least once every three years thereafter after initial training under this subdivision.

 

(b) The training must address the general hazards of oil and hazardous substances, techniques to assess hazards to the environment and to the safety of responders and the public, factors an incident commander must consider in determining whether to attempt to suppress a fire or to evacuate the public and emergency responders from an area, and other strategies for initial response by local emergency responders.  The training must include suggested protocol or practices for local responders to safely accomplish these tasks methods to identify rail cars and hazardous substance contents, responder safety issues, rail response tactics, public notification and evacuation considerations, environmental contamination response, railroad response personnel and resources coordination at an incident, and other protocols and practices for safe initial local response as required under subdivision 4, including the notification requirements and the responsibilities of an incident commander during a rail incident involving oil or other hazardous substances, as provided in subdivisions 3 and 4.

 

Sec. 7.  Minnesota Statutes 2022, section 115E.042, subdivision 3, is amended to read:

 

Subd. 3.  Emergency response planning; coordination.  Beginning June 30, 2015, (a) Each railroad must communicate at least annually with each county or city applicable emergency manager, safety representatives of railroad employees governed by the Railway Labor Act, and a senior each applicable fire department officer of each fire department having jurisdiction along the route of a unit train routes over which oil or other hazardous substances are transported, in order to:


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(1) ensure coordination of emergency response activities between the railroad and local responders;

 

(2) assist emergency managers in identifying and assessing local rail-specific threats, hazards, and risks; and

 

(3) assist railroads in obtaining information from emergency managers regarding specific local natural and technical hazards and threats in the local area that may impact rail operations or public safety.

 

(b) The coordination under paragraph (a), clauses (2) and (3), must include identification of increased risks and potential special responses due to high population concentration, critical local infrastructure, key facilities, significant venues, sensitive natural environments, and other factors identified by railroads, emergency managers, and fire departments.

 

(c) The commissioner of public safety must compile and make available to railroads a list of applicable emergency managers and applicable fire chiefs, which must include contact information.  The commissioner must make biennial updates to the list of emergency managers and fire chiefs and make the list of updated contact information available to railroads.

 

Sec. 8.  Minnesota Statutes 2022, section 115E.042, subdivision 4, is amended to read:

 

Subd. 4.  Response capabilities; time limits.  (a) Following confirmation of a discharge, a railroad must deliver and deploy sufficient equipment and trained personnel to (1) contain and recover discharged oil or other hazardous substances and to, (2) protect the environment, and (3) assist local public safety officials.  Within 15 minutes of a rail incident involving a confirmed discharge or release of oil or other hazardous substances, a railroad must contact the applicable emergency manager and applicable fire chief having jurisdiction along the route where the incident occurred.  After learning of the rail incident involving oil or other hazardous substances, the applicable emergency manager and applicable fire chief must, as soon as practicable, identify and provide contact information of the responsible incident commander to the reporting railroad.

 

(b) Within 15 minutes of local emergency responder arrival on the scene of a rail incident involving oil or other hazardous substances, a railroad must assist the incident commander to determine the nature of any hazardous substance known to have been released and hazardous substance cargo transported on the train.  Assistance must include providing information that identifies the chemical content of the hazardous substance, contact information for the shipper, and instructions for dealing with the release of the material.  A railroad may provide information on the hazardous substances transported on the train through the train orders on board the train or by facsimile or electronic transmission.

 

(c) Within one hour of confirmation of a discharge, a railroad must provide a qualified company employee representative to advise the incident commander, assist in assessing the situation, initiate railroad response actions as needed, and provide advice and recommendations to the incident commander regarding the response.  The employee representative may be made available by telephone, and must be authorized to deploy all necessary response resources of the railroad.

 

(c) (d) Within three hours of confirmation of a discharge, a railroad must be capable of delivering monitoring equipment and a trained operator to assist in protection of responder and public safety.  A plan to ensure delivery of monitoring equipment and an operator to a discharge site must be provided each year to the commissioner of public safety.

 

(d) (e) Within three hours of confirmation of a discharge, a railroad must provide (1) qualified personnel at a discharge site to assess the discharge and to advise the incident commander, and (2) resources to assist the incident commander with ongoing public safety and scene stabilization.


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(e) (f) A railroad must be capable of deploying containment boom from land across sewer outfalls, creeks, ditches, and other places where oil or other hazardous substances may drain, in order to contain leaked material before it reaches those resources.  The arrangement to provide containment boom and staff may be made by:

 

(1) training and caching equipment with local jurisdictions;

 

(2) training and caching equipment with a fire mutual-aid group;

 

(3) means of an industry cooperative or mutual-aid group;

 

(4) deployment of a contractor;

 

(5) deployment of a response organization under state contract; or

 

(6) other dependable means acceptable to the Pollution Control Agency.

 

(f) (g) Each arrangement under paragraph (e) (f) must be confirmed each year.  Each arrangement must be tested by drill at least once every five years.

 

(g) (h) Within eight hours of confirmation of a discharge, a railroad must be capable of delivering and deploying containment boom, boats, oil recovery equipment, trained staff, and all other materials needed to provide:

 

(1) on-site containment and recovery of a volume of oil equal to ten percent of the calculated worst case discharge at any location along the route; and

 

(2) protection of listed sensitive areas and potable water intakes within one mile of a discharge site and within eight hours of water travel time downstream in any river or stream that the right-of-way intersects.

 

(h) (i) Within 60 hours of confirmation of a discharge, a railroad must be capable of delivering and deploying additional containment boom, boats, oil recovery equipment, trained staff, and all other materials needed to provide containment and recovery of a worst case discharge and to protect listed sensitive areas and potable water intakes at any location along the route.

 

Sec. 9.  Minnesota Statutes 2022, section 115E.042, subdivision 5, is amended to read:

 

Subd. 5.  Railroad drills exercises.  (a) Each railroad operating unit trains in Minnesota must conduct at least one oil containment, recovery, and sensitive area protection drill walkthrough, tabletop exercise, or functional exercise involving oil or hazardous substances every three years, year.  Subject to the provisions of paragraph (c), each exercise must be at a location and time chosen by the Pollution Control Agency, and attended by safety representatives of railroad employees governed by the Railway Labor Act.  Subject to the provisions in paragraph (d) and section 219.055, subdivision 8, each railroad operating unit trains in Minnesota must conduct at least one oil containment, recovery, and sensitive area full-scale exercise every five years in coordination with the commissioner of public safety, local emergency management organizations, local fire chiefs, and safety representatives of railroad employees governed by the Railway Labor Act.

 

(b) The exercises under this subdivision must attempt to evaluate, coordinate, and improve the emergency response plans submitted by a railroad under subdivision 3.  The exercises under this subdivision and section 219.055, subdivisions 6, 7, and 8, must be coordinated with exercises required by federal agencies.

 

(c) The commissioner of the Pollution Control Agency must consult with the Division of Homeland Security and Emergency Management, the state fire marshal, and local emergency management organizations in determining the railroad's annual exercise required under this section.  In determining the appropriate exercise for a rail carrier, the


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commissioner must evaluate whether a rail carrier has conducted a similar exercise within the preceding calendar year and the results from prior years' response and training.  To the extent practicable, the commissioner must alternate between requiring a walkthrough, a tabletop exercise, or a functional exercise.  The exercise selected for a rail carrier must address specific components, resources, and procedures of a response to a confirmed discharge of oil or other hazardous substances carried by rail.  The commissioner must coordinate each exercise with exercises required by federal agencies.  If an exercise selected by the commissioner is a tabletop exercise, the commissioner may select to conduct a public safety emergency response exercise or an incident commander response site exercise as provided in section 219.055, subdivision 6 or 7.

 

(d) Subject to the requirements in section 219.055, subdivision 8, the full-scale exercise required under paragraph (a) must include the response capability requirements and operate under the response time limits set forth in subdivision 4.  In determining the time, location, and manner of the full-scale exercise, the commissioner of the Pollution Control Agency must consult with the Division of Homeland Security and Emergency Management, the state fire marshal, local units of government, local law enforcement, the fire chiefs in the jurisdiction where the full‑scale exercise will take place, and safety representatives of railroad employees governed by the Railway Labor Act.

 

(e) Exercises conducted by a railroad under this section must include at least one representative from local emergency management organizations, fire departments, and local units of government that each have jurisdiction along the routes over which oil or hazardous substances are transported by railroad.

 

Sec. 10.  Minnesota Statutes 2022, section 115E.042, subdivision 6, is amended to read:

 

Subd. 6.  Prevention and response plans; requirements; submission.  (a) By June 30, 2015, A railroad shall submit the prevention and response plan required under section 115E.04, as necessary to comply with the requirements of this section, to the commissioner of the Pollution Control Agency on a form designated by the commissioner.

 

(b) By June 30 of Every third year following a plan submission under this subdivision, or sooner as provided under section 115E.04, subdivision 2, a railroad must update and resubmit the prevention and response plan to the commissioner.

 

Sec. 11.  Minnesota Statutes 2022, section 123B.90, subdivision 2, is amended to read:

 

Subd. 2.  Student training.  (a) Each district must provide public school pupils enrolled in kindergarten through grade 10 with age-appropriate school bus safety training, as described in this section, of the following concepts:

 

(1) transportation by school bus is a privilege and not a right;

 

(2) district policies for student conduct and school bus safety;

 

(3) appropriate conduct while on the school bus;

 

(4) the danger zones surrounding a school bus;

 

(5) procedures for safely boarding and leaving a school bus;

 

(6) procedures for safe street or road crossing; and

 

(7) school bus evacuation.


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(b) Each nonpublic school located within the district must provide all nonpublic school pupils enrolled in kindergarten through grade 10 who are transported by school bus at public expense and attend school within the district's boundaries with training as required in paragraph (a).

 

(c) Students enrolled in kindergarten through grade 6 who are transported by school bus and are enrolled during the first or second week of school must receive the school bus safety training competencies by the end of the third week of school.  Students enrolled in grades 7 through 10 who are transported by school bus and are enrolled during the first or second week of school and have not previously received school bus safety training must receive the training or receive bus safety instructional materials by the end of the sixth week of school.  Students taking driver's training instructional classes must receive training in the laws and proper procedures when operating a motor vehicle in the vicinity of a school bus as required by section 169.446, subdivisions 2 and 3.  Students enrolled in kindergarten through grade 10 who enroll in a school after the second week of school and are transported by school bus and have not received training in their previous school district shall undergo school bus safety training or receive bus safety instructional materials within four weeks of the first day of attendance.  Upon request of the superintendent of schools, the school transportation safety director in each district must certify to the superintendent that all students transported by school bus within the district have received the school bus safety training according to this section.  Upon request of the superintendent of the school district where the nonpublic school is located, the principal or other chief administrator of each nonpublic school must certify to the school transportation safety director of the district in which the school is located that the school's students transported by school bus at public expense have received training according to this section.

 

(d) A district and a nonpublic school with students transported by school bus at public expense may provide kindergarten pupils with bus safety training before the first day of school.

 

(e) A district and a nonpublic school with students transported by school bus at public expense may also provide student safety education for bicycling and pedestrian safety, for students enrolled in kindergarten through grade 5.

 

(f) (e) A district and a nonpublic school with students transported by school bus at public expense must make reasonable accommodations for the school bus safety training of pupils known to speak English as a second language and pupils with disabilities.

 

(g) (f) The district and a nonpublic school with students transported by school bus at public expense must provide students enrolled in kindergarten through grade 3 school bus safety training twice during the school year.

 

(h) (g) A district and a nonpublic school with students transported by school bus at public expense must conduct a school bus evacuation drill at least once during the school year.

 

EFFECTIVE DATE.  This section is effective August 1, 2023.

 

Sec. 12.  [123B.935] ACTIVE TRANSPORTATION SAFETY TRAINING.

 

Subdivision 1.  Training required.  (a) Each district must provide public school pupils enrolled in kindergarten through grade 3 with age-appropriate active transportation safety training.  At a minimum, the training must include pedestrian safety, including crossing roads.

 

(b) Each district must provide public school pupils enrolled in grades 4 through 8 with age-appropriate active transportation safety training.  At a minimum, the training must include:

 

(1) pedestrian safety, including crossing roads safely using the searching left, right, left for vehicles in traffic technique; and


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(2) bicycle safety, including relevant traffic laws, use and proper fit of protective headgear, bicycle parts and safety features, and safe biking techniques.

 

(c) A nonpublic school may provide nonpublic school pupils enrolled in kindergarten through grade 8 with training as specified in paragraphs (a) and (b).

 

Subd. 2.  Deadlines.  (a) Students under subdivision 1, paragraph (a), who are enrolled during the first or second week of school and have not previously received active transportation safety training specified in that paragraph must receive the safety training by the end of the third week of school.

 

(b) Students under subdivision 1, paragraph (b), who are enrolled during the first or second week of school and have not previously received active transportation safety training specified in that paragraph must receive the safety training by the end of the sixth week of school.

 

(c) Students under subdivision 1, paragraph (a) or (b), who enroll in a school after the second week of school and have not received the appropriate active transportation safety training in their previous school district must undergo the training or receive active transportation safety instructional materials within four weeks of the first day of attendance.

 

(d) A district and a nonpublic school may provide kindergarten pupils with active transportation safety training before the first day of school.

 

Subd. 3.  Instruction.  (a) A district may provide active transportation safety training through distance learning.

 

(b) A district and a nonpublic school must make reasonable accommodations for the active transportation safety training of pupils known to speak English as a second language and pupils with disabilities.

 

Subd. 4.  Model program.  The commissioner of transportation must maintain a comprehensive collection of active transportation safety training materials that meets the requirements under this section.

 

EFFECTIVE DATE.  This section is effective August 1, 2023.

 

Sec. 13.  Minnesota Statutes 2022, section 151.37, subdivision 12, is amended to read:

 

Subd. 12.  Administration of opiate antagonists for drug overdose.  (a) A licensed physician, a licensed advanced practice registered nurse authorized to prescribe drugs pursuant to section 148.235, or a licensed physician assistant may authorize the following individuals to administer opiate antagonists, as defined in section 604A.04, subdivision 1:

 

(1) an emergency medical responder registered pursuant to section 144E.27;

 

(2) a peace officer as defined in section 626.84, subdivision 1, paragraphs (c) and (d);

 

(3) correctional employees of a state or local political subdivision;

 

(4) staff of community-based health disease prevention or social service programs;

 

(5) a volunteer firefighter; and

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