House Journal 76th Day Sunday May 21 2023

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

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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

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.

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.

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

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.

(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.

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

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.

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

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

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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(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.

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

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

(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.

(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.

(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.

(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.

(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.

(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
Journal of the House - 76th Day - Sunday, May 21, 2023 - Top of Page 10298 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.

(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).

(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.

(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.

(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~~

(6) a licensed school nurse or certified public health nurse employed by, or under contract with, a school board under section 121A.21; and

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(7) transit rider investment program personnel authorized under section 473.4075.

(b) For the purposes of this subdivision, opiate antagonists may be administered by one of these individuals only if:

(1) the licensed physician, licensed physician assistant, or licensed advanced practice registered nurse has issued a standing order to, or entered into a protocol with, the individual; and

(2) the individual has training in the recognition of signs of opiate overdose and the use of opiate antagonists as part of the emergency response to opiate overdose.

Sec. 14. [160.2325] HIGHWAYS FOR HABITAT PROGRAM.

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

(b) "Integrated roadside vegetation management" means an approach to right-of-way maintenance that combines a variety of techniques based on sound ecological principles, which establish and maintain safe, healthy, and functional roadsides. Integrated roadside vegetation management includes but is not limited to judicious use of herbicides, spot mowing, biological control, prescribed burning, mechanical tree and brush removal, erosion prevention and treatment, and prevention and treatment of other right-of-way disturbances.

Subd. 2. Program establishment. The commissioner must establish a highways for habitat program to enhance roadsides with pollinator and other wildlife habitat and vegetative buffers.

Subd. 3. Management standards. (a) The commissioner, in consultation with native habitat biologists and ecologists, must develop standards and best management practices for integrated roadside vegetation management under the program.

(b) The standards and best management practices must, to the extent practicable, include:

(1) guidance on seed and vegetation selection based on the Board of Water and Soil Resources' native vegetation establishment and enhancement guidelines;

(2) requirements for roadside vegetation management protocols that avoid the use of pollinator lethal insecticides as defined under section 18H.02, subdivision 28a;

(3) practices that are designed to avoid habitat destruction and protect nesting birds, pollinators, and other wildlife, except as necessary to control noxious weeds as provided under section 160.23; and

(4) identification of appropriate right-of-way tracts for wildflower and native habitat establishment.

Subd. 4. Legislative report. (a) By January 15 of each odd-numbered year, the commissioner must submit a performance report on the program to the chairs and ranking minority members of the legislative committees having jurisdiction over transportation policy and finance. At a minimum, the report must include:

(1) information that details the department's progress on implementing the highways for habitat program;

(2) a fiscal review that identifies expenditures under the program; and

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(3) an investment plan for each district of the department for the next biennium.

(b) The performance report must be reviewed by the department's chief engineer.

Sec. 15. Minnesota Statutes 2022, section 160.262, subdivision 3, is amended to read:

Subd. 3. Cooperation among agencies and governments. (a) The departments and agencies on the active transportation advisory committee identified in section 174.375 must provide information and advice for the bikeway design guidelines maintained by the commissioner.

(b) The commissioner must provide technical assistance to local units of government in:

(1) local planning and development of bikeways;

(2) establishing connections to state bicycle routes; and

(3) implementing statewide bicycle plans maintained by the commissioner.

(c) The commissioner may cooperate with and enter into agreements with the United States government, any department of the state of Minnesota, any unit of local government, any tribal government, or any public or private corporation in order to effect the purposes of this section.

EFFECTIVE DATE. This section is effective August 1, 2023.

Sec. 16. Minnesota Statutes 2022, section 160.266, subdivision 1b, is amended to read:

Subd. 1b. State bicycle routes. The commissioner of transportation must identify state bicycle routes primarily on existing road right-of-way and trails. State bicycle routes must be identified in cooperation with road and trail authorities, including the commissioner of natural resources, and with the advice of the active transportation advisory committee under section 174.375. In a metropolitan area, state bicycle routes must be identified in coordination with the plans and priorities established by metropolitan planning organizations, as defined in United States Code, title 23, section 134.

EFFECTIVE DATE. This section is effective August 1, 2023.

Sec. 17. Minnesota Statutes 2022, section 160.266, subdivision 6, is amended to read:

Subd. 6. Mississippi River Trail. The Mississippi River Trail bikeway is designated as a state bicycle route. It must originate at Itasca State Park in Clearwater, Beltrami, and Hubbard Counties, then generally parallel the Mississippi River through the cities of Bemidji in Beltrami County, Grand Rapids in Itasca County, Brainerd in Crow Wing County, Little Falls in Morrison County, Sauk Rapids in Benton County, St. Cloud in Stearns County, Minneapolis in Hennepin County, St. Paul in Ramsey County, Hastings in Dakota County, Red Wing in Goodhue County, Wabasha in Wabasha County, Winona in Winona County, and La Crescent in Houston County to Minnesota's boundary with Iowa and there terminate. Where opportunities exist, the bikeway may be designated on both sides of the Mississippi River.

EFFECTIVE DATE. This section is effective August 1, 2023.

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Sec. 18. Minnesota Statutes 2022, section 160.266, is amended by adding a subdivision to read:

Subd. 7. Jim Oberstar Bikeway. The Jim Oberstar Bikeway is designated as a state bicycle route. It must originate in the city of St. Paul in Ramsey County, then proceed north and east to Duluth in St. Louis County, then proceed north and east along the shore of Lake Superior through Grand Marais in Cook County to Minnesota's boundary with Canada, and there terminate.

EFFECTIVE DATE. This section is effective August 1, 2023.

Sec. 19. Minnesota Statutes 2022, section 161.045, subdivision 3, is amended to read:

Subd. 3. Limitations on spending. (a) A commissioner must not pay for any of the following with funds from the highway user tax distribution fund or the trunk highway fund:

(1) Bureau of Criminal Apprehension laboratory;

(2) Explore Minnesota Tourism kiosks;

(3) Minnesota Safety Council;

(4) driver education programs;

(5) Emergency Medical Services Regulatory Board;

(6) Mississippi River Parkway Commission;

(7) payments to the Department of Information Technology Services in excess of actual costs incurred for trunk highway purposes;

(8) personnel costs incurred on behalf of the governor's office;

(9) the Office of Aeronautics within the Department of Transportation;

(10) the Office of Transit and Active Transportation within the Department of Transportation;

(11) the Office of Passenger Rail;

(12) purchase and maintenance of soft body armor under section 299A.38;

(13) tourist information centers;

(14) parades, events, or sponsorships of events;

(15) ~~rent and utility expenses for the department's central office building;~~

~~(16)~~ the installation, construction, expansion, or maintenance of public electric vehicle infrastructure;

~~(17)~~ (16) the statewide notification center for excavation services pursuant to chapter 216D; and

~~(18)~~ (17) manufacturing license plates.

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(b) The prohibition in paragraph (a) includes all expenses for the named entity or program, including but not limited to payroll, purchased services, supplies, repairs, and equipment. This prohibition on spending applies to any successor entities or programs that are substantially similar to the entity or program named in this subdivision.

Sec. 20. Minnesota Statutes 2022, section 161.088, subdivision 1, is amended to read:

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

~~(1)~~ (b) "Beyond the project limits" means any point that is located:

~~(i)~~ (1) outside of the project limits;

~~(ii)~~ (2) along the same trunk highway; and

~~(iii)~~ (3) within the same region of the state;.

~~(2)~~ (c) "City" means a statutory or home rule charter city;.

(d) "Department" means the Department of Transportation.

(e) "Greater metropolitan county" means any of the counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright.

~~(3)~~ (f) "Program" means the corridors of commerce program established in this section~~; and~~.

~~(4)~~ (g) "Project limits" means the estimated construction limits of a project for trunk highway construction, reconstruction, or maintenance, that is a candidate for selection under the corridors of commerce program.

(h) "Screening entity" means an area transportation partnership; the Metropolitan Council in consultation with the Transportation Advisory Board under section 473.146, subdivision 4; or a greater metropolitan county.

Sec. 21. Minnesota Statutes 2022, section 161.088, subdivision 2, is amended to read:

Subd. 2. Program authority; funding. (a) As provided in this section, the commissioner ~~shall~~ must establish a corridors of commerce program for trunk highway construction, reconstruction, and improvement, including maintenance operations, that improves commerce in the state.

(b) The commissioner may expend funds under the program from appropriations to the commissioner that are:

(1) made specifically by law for use under this section;

(2) at the discretion of the commissioner, made for the budget activities in the state roads program of operations and maintenance, program planning and delivery, or state road construction; and

(3) made for the corridor investment management strategy program, unless specified otherwise.

(d) The commissioner may use up to 17 percent of any appropriation ~~to the program~~ under this section for program delivery and for project scoring, ranking, and selection under subdivision 5.

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Sec. 22. Minnesota Statutes 2022, section 161.088, subdivision 4, is amended to read:

Subd. 4. Project eligibility. (a) The eligibility requirements for projects that can be funded under the program are:

(1) consistency with the statewide multimodal transportation plan under section 174.03;

(2) location of the project on ~~an interregional corridor~~ the national highway system, as provided under Code of Federal Regulations, title 23, part 470, and successor requirements, for a project located outside of the Department of Transportation metropolitan district;

(3) placement into at least one project classification under subdivision 3;

(4) project construction work will commence within ~~three~~ four years, ~~or a longer length of time as determined by the commissioner~~ except for readiness development projects funded under subdivision 4b; ~~and~~

(5) for each type of project classification under subdivision 3, a maximum allowable amount for the total project cost estimate, as determined by the commissioner with available data; and

(6) determination of a total project cost estimate with a reasonable degree of accuracy, except for readiness development projects funded under subdivision 4b.

(b) A project whose construction is programmed in the state transportation improvement program is not eligible for funding under the program. This paragraph does not apply to a project that is programmed as result of selection under this section.

(c) A project may be, but is not required to be, identified in the 20-year state highway investment plan under section 174.03.

(d) For each project, the commissioner must consider all of the eligibility requirements under paragraph (a). The commissioner is prohibited from considering any eligibility requirement not specified under paragraph (a).

Sec. 23. Minnesota Statutes 2022, section 161.088, is amended by adding a subdivision to read:

Subd. 4a. Project funding; regional balance. (a) To ensure regional balance throughout the state, the commissioner must distribute all available funds under the program according to the following regional allocations:

(1) Metro Projects: at least 25 percent and no more than 27.5 percent of the funds are for projects that are located within, on, or directly adjacent to an area bounded by marked Interstate Highways 494 and 694;

(2) Metro Connector Projects: at least 35 percent and no more than 37.5 percent of the funds are for projects that:

(i) are not included in clause (1); and

(ii) are located wholly or primarily within a greater metropolitan county; and

(3) Regional Center Projects: at least 35 percent and no more than 40 percent of the funds are for projects that are not included in clause (1) or (2).

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(b) The commissioner must calculate the percentages under paragraph (a) using total funds under the program over the current and prior two consecutive project selection rounds. The calculations must include readiness development projects funded under subdivision 4b.

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

Sec. 24. Minnesota Statutes 2022, section 161.088, is amended by adding a subdivision to read:

Subd. 4b. Project funding; readiness development. (a) The commissioner may allocate up to ten percent of funds available in each fiscal year for the following readiness advancement activities on a project: planning, scoping, predesign, preliminary engineering, and environmental analysis. Any share of funds not allocated by the commissioner to readiness advancement activities must be distributed to ranked projects in subdivision 4a.

(b) Funds under this subdivision are for project development sufficient to: (1) meet the eligibility requirements under subdivision 4, paragraph (a), clauses (4) and (6); and (2) provide for the scoring assessment under subdivision 5.

Sec. 25. Minnesota Statutes 2022, section 161.088, subdivision 5, is amended to read:

Subd. 5. Project selection process; criteria. (a) The commissioner must establish a process to identify, evaluate, and select projects under the program. The process must be consistent with the requirements of this subdivision and must not include any additional ~~evaluation~~ scoring criteria. The process must include phases as provided in this subdivision.

(b) As part of the project selection process, the commissioner must annually accept recommendations on candidate projects from area transportation partnerships and other interested stakeholders in each Department of Transportation district. The commissioner must determine the eligibility for each candidate project identified under this paragraph. For each eligible project, the commissioner must classify and evaluate the project for the program, using all of the criteria established under paragraph (c). Phase 1: Project solicitation. Following enactment of each law that makes additional funds available for the program, the commissioner must undertake a public solicitation of potential projects for consideration. The solicitation must be performed through an Internet recommendation process that allows for an interested party, including an individual, business, local unit of government, corridor group, or interest group, to submit a project for consideration.

(c) Phase 2: Local screening and recommendations. The commissioner must present the projects submitted during the open solicitation under Phase 1 to the appropriate screening entity where each project is located. A screening entity must:

(1) consider all of the submitted projects for its area;

(2) solicit input from members of the legislature who represent the area for project review, comment, and nonbinding approval or disapproval; and

(3) recommend projects to the commissioner for formal scoring, as provided in Phase 3.

(d) In addition to readiness development projects selected in paragraph (e), each screening entity may recommend the following number of projects to the commissioner:

(1) for area transportation partnerships, no more than three projects;

(2) for the Metropolitan Council in consultation with the Transportation Advisory Board, no more than four projects; and

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(3) for each greater metropolitan county, no more than two projects.

(e) Each screening entity may select up to two additional projects to recommend to the commissioner for readiness development funding as provided under subdivision 4b.

(f) A screening entity may recommend a replacement project for one that the commissioner determines is ineligible under subdivision 4. Each recommendation must identify the comments and approvals or disapprovals provided by a member of the legislature.

(g) Phase 3: Project scoring. The commissioner must confirm project eligibility under subdivision 4 and perform a complete scoring assessment on each of the eligible projects recommended by the screening entities under Phase 2.

(h) Projects must be ~~evaluated~~ scored using all of the following criteria:

(1) a return on investment measure that provides for comparison across eligible projects;

(2) measurable impacts on commerce and economic competitiveness;

(3) efficiency in the movement of freight, including but not limited to:

(i) measures of annual average daily traffic and commercial vehicle miles traveled, which may include data near the project location on that trunk highway or on connecting trunk and local highways; and

(ii) measures of congestion or travel time reliability, which may be within or near the project limits, or both;

(4) improvements to traffic safety;

(5) connections to regional trade centers, local highway systems, and other transportation modes;

(6) the extent to which the project addresses multiple transportation system policy objectives and principles;

(7) support and consensus for the project among members of the surrounding community; and

(8) the time and work needed before construction may begin on the project~~; and~~.

~~(9) regional balance throughout the state.~~

The commissioner must give the criteria in clauses (1) to (8) equal weight in the ~~selection~~ scoring process. The commissioner may establish an alternative scoring assessment method for readiness development projects funded under subdivision 4b, which, to the extent practicable, must use the criteria specified in this paragraph.

~~(d) The list of all projects evaluated must be made public and must include the score of each project.~~

(e) As part of the project selection process, the commissioner may divide funding to be separately available among projects within each classification under subdivision 3, and may apply separate or modified criteria among those projects falling within each classification.

(i) Phase 4: Project ranking and selection. On completion of project scoring under Phase 3, the commissioner must develop a ranked list of projects based on total score, and must select projects in rank order for funding under the program, subject to subdivisions 4a and 4b. The commissioner must specify the amounts and known or anticipated sources of funding for each selected project.

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(j) Phase 5: Public information. The commissioner must publish information regarding the selection process on the department's website. The information must include:

(1) lists of all projects submitted for consideration and all projects recommended by the screening entities;

(2) the scores and ranking for each project; and

(3) an overview of each selected project, with amounts and sources of funding.

(k) Phase 6: Readiness development. For project selection under Phase 4, if all selected projects from prior project selection rounds under Phase 4 are funded, the commissioner must select additional projects from projects that received readiness development advancement funds under subdivision 4b. If a project received readiness development advancement funds and does not have sufficient sources of funding identified, the commissioner must re-score the projects as provided under Phase 3 and include the project in Phase 4 in the next selection round.

Sec. 26. Minnesota Statutes 2022, section 161.14, subdivision 97, is amended to read:

Subd. 97. Corporal Caleb L. Erickson Memorial Highway. That segment of marked Trunk Highway 13 in Waseca County from the southern border of ~~Woodville~~ New Richland Township to the northern border of Blooming Grove Township is designated as "Corporal Caleb L. Erickson Memorial Highway." Subject to section 161.139, the commissioner must adopt a suitable design to mark this highway and erect appropriate signs.

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

Sec. 27. Minnesota Statutes 2022, section 161.14, is amended by adding a subdivision to read:

Subd. 103. Deputy Josh Owen Memorial Overpass. The overpass at the junction of marked Trunk Highway 29 and marked Trunk Highway 55 in Pope County is designated as "Deputy Josh Owen Memorial Overpass." Subject to section 161.139, the commissioner must adopt a suitable design to mark the overpass and erect appropriate signs.

Sec. 28. [161.178] TRANSPORTATION GREENHOUSE GAS EMISSIONS IMPACT ASSESSMENT.

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

(b) "Applicable entity" means the commissioner with respect to a capacity expansion project for inclusion in the state transportation improvement program or a metropolitan planning organization with respect to a capacity expansion project for inclusion in the appropriate metropolitan transportation improvement program.

(d) "Capacity expansion project" means a project for trunk highway construction or reconstruction that:

(1) is a major highway project, as defined in section 174.56, subdivision 1, paragraph (b); and

(2) adds highway traffic capacity or provides for grade separation at an intersection, excluding auxiliary lanes with a length of less than 2,500 feet.

(e) "Greenhouse gas emissions" includes those emissions described in section 216H.01, subdivision 2.

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Subd. 2. Project assessment. (a) Prior to inclusion of a capacity expansion project in the state transportation improvement program or a metropolitan transportation improvement program, the applicable entity must perform a capacity expansion impact assessment of the project. Following the assessment, the applicable entity must determine if the project conforms with:

(1) the greenhouse gas emissions reduction targets under section 174.01, subdivision 3; and

(2) the vehicle miles traveled reduction targets established in the statewide multimodal transportation plan under section 174.03, subdivision 1a.

(b) If the applicable entity determines that the capacity expansion project is not in conformance with paragraph (a), the applicable entity must:

(1) alter the scope or design of the project and perform a revised assessment that meets the requirements under this section;

(2) interlink sufficient impact mitigation as provided in subdivision 4; or

(3) halt project development and disallow inclusion of the project in the appropriate transportation improvement program.

Subd. 3. Assessment requirements. (a) The commissioner must establish a process to perform capacity expansion impact assessments. An assessment must provide for the determination under subdivision 2.

(b) Analysis under an assessment must include but is not limited to estimates resulting from the project for the following:

(1) greenhouse gas emissions over a period of 20 years; and

(2) a net change in vehicle miles traveled for the affected network.

Subd. 4. Impact mitigation. (a) To provide for impact mitigation, the applicable entity must interlink the capacity expansion project as provided in this subdivision.

(b) Impact mitigation is sufficient under subdivision 2, paragraph (b), if the capacity expansion project is interlinked to mitigation actions such that the total greenhouse gas emissions reduction from the mitigation actions, after accounting for the greenhouse gas emissions otherwise resulting from the capacity expansion project, is consistent with meeting the targets specified under subdivision 2, paragraph (a). Each comparison under this paragraph must be performed over equal comparison periods.

(c) A mitigation action consists of a project, program, or operations modification in one or more of the following areas:

(1) transit expansion, including but not limited to regular route bus, arterial bus rapid transit, highway bus rapid transit, rail transit, and intercity passenger rail;

(2) transit service improvements, including but not limited to increased service level, transit fare reduction, and transit priority treatments;

(3) active transportation infrastructure;

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(4) micromobility infrastructure and service, including but not limited to shared vehicle services;

(5) transportation demand management, including but not limited to vanpool and shared vehicle programs, remote work, and broadband access expansion;

(6) parking management, including but not limited to parking requirements reduction or elimination and parking cost adjustments;

(7) land use, including but not limited to residential and other density increases, mixed-use development, and transit-oriented development;

(8) infrastructure improvements related to traffic operations, including but not limited to roundabouts and reduced conflict intersections; and

(9) natural systems, including but not limited to prairie restoration, reforestation, and urban green space.

(d) A mitigation action may be identified as interlinked to the capacity expansion project if:

(1) there is a specified project, program, or modification;

(2) the necessary funding sources are identified and sufficient amounts are committed;

(3) the mitigation is localized as provided in subdivision 5; and

(4) procedures are established to ensure that the mitigation action remains in substantially the same form or a revised form that continues to meet the calculation under paragraph (b).

Subd. 5. Impact mitigation; localization. (a) A mitigation action under subdivision 4 must be localized in the following priority order:

(1) within or associated with at least one of the communities impacted by the capacity expansion project;

(2) if there is not a reasonably feasible location under clause (1), in areas of persistent poverty or historically disadvantaged communities, as measured and defined in federal law, guidance, and notices of funding opportunity;

(3) if there is not a reasonably feasible location under clauses (1) and (2), in the region of the capacity expansion project; or

(4) if there is not a reasonably feasible location under clauses (1) to (3), on a statewide basis.

(b) The applicable entity must include an explanation regarding the feasibility and rationale for each mitigation action located under paragraph (a), clauses (2) to (4).

Subd. 6. Public information. The commissioner must publish information regarding capacity expansion impact assessments on the department's website. The information must include:

(1) identification of capacity expansion projects; and

(2) for each project, a summary that includes an overview of the expansion impact assessment, the impact determination by the commissioner, and project disposition, including a review of any mitigation actions.

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Subd. 7. Safety and well-being. The requirements of this section are in addition to and must not supplant the safety and well-being goals established under section 174.01, subdivision 2, clauses (1) and (2).

EFFECTIVE DATE; APPLICATION. This section is effective February 1, 2025. This section does not apply to a capacity expansion project that was either included in the state transportation improvement program or has been submitted for approval of the geometric layout before February 1, 2025.

Sec. 29. Minnesota Statutes 2022, section 161.45, subdivision 1, is amended to read:

Subdivision 1. Rules. (a) Electric transmission, telephone, or telegraph lines; pole lines; community antenna television lines; railways; ditches; sewers; water, heat, or gas mains; gas and other pipelines; flumes; or other structures which, under the laws of this state or the ordinance of any city, may be constructed, placed, or maintained across or along any trunk highway, or the roadway thereof, by any person, persons, corporation, or any subdivision of the state, may be so maintained or hereafter constructed only in accordance with such rules as may be prescribed by the commissioner who shall have power to prescribe and enforce reasonable rules with reference to the placing and maintaining along, across, or in any such trunk highway of any of the utilities hereinbefore set forth.

(b) Except as necessary to protect public safety or ensure the proper function of the trunk highway, including future expansions, the rules prescribed by the commissioner under paragraph (a) must not prohibit an entity from placing and maintaining electric transmission lines along, across, or in any trunk highway if the entity:

(1) has a right to use the public road right-of-way pursuant to section 222.37, subdivision 1;

(2) has a power purchase agreement or an agreement to transfer ownership with a Minnesota utility that directly, or through its members and agents, provides retail electric service in the state; and

(3) obtains a permit from the commissioner.

(c) The commissioner must decide whether to issue a permit to an entity within 60 days of receiving the entity's request.

(d) Nothing herein shall restrict the actions of public authorities in extraordinary emergencies nor restrict the power and authority of the commissioner of commerce as provided for in other provisions of law. Provided, however, that in the event any local subdivision of government has enacted ordinances relating to the method of installation or requiring underground installation of such community antenna television lines, the permit granted by the commissioner of transportation shall require compliance with such local ordinance.

Sec. 30. Minnesota Statutes 2022, section 161.45, subdivision 2, is amended to read:

Subd. 2. Relocation of utility. Whenever the relocation of any utility facility is necessitated by the construction of a project on a trunk highway ~~routes other than those described in section 161.46, subdivision 2~~ route, the relocation work may be made a part of the state highway construction contract or let as a separate contract as provided by law if the owner or operator of the facility requests the commissioner to act as its agent for the purpose of relocating the facilities and if the commissioner determines that such action is in the best interests of the state. Payment by the utility owner or operator to the state shall be in accordance with applicable statutes and the rules for utilities on trunk highways.

Sec. 31. Minnesota Statutes 2022, section 161.46, subdivision 2, is amended to read:

Subd. 2. Relocation of facilities; reimbursement. (a) Whenever the commissioner shall determine the relocation of any utility facility is necessitated by the construction of a project on the routes of federally aided state trunk highways, including urban extensions thereof, which routes are included within the National System of

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Interstate Highways, the owner or operator of such utility facility shall relocate the same in accordance with the order of the commissioner. After the completion of such relocation the cost thereof shall be ascertained and paid by the state out of trunk highway funds; provided, however, the amount to be paid by the state for such reimbursement shall not exceed the amount on which the federal government bases its reimbursement for said interstate system.

(b) Notwithstanding paragraph (a), on or after January 1, 2024, any entity that receives a route permit under chapter 216E for a high-voltage transmission line necessary to interconnect an electric power generating facility is not eligible for relocation reimbursement unless the entity directly, or through its members or agents, provides retail electric service in this state.

Sec. 32. Minnesota Statutes 2022, section 161.53, is amended to read:

161.53 RESEARCH ACTIVITIES.

(a) The commissioner may set aside in each fiscal year up to two percent of the total amount of all funds appropriated to the commissioner other than county state-aid and municipal state-aid highway funds for transportation research including public and private research partnerships. The commissioner shall spend this money for (1) research to improve the design, construction, maintenance, management, and environmental compatibility of transportation systems, including research into and implementation of innovations in bridge‑monitoring technology and bridge inspection technology; bridge inspection techniques and best practices; and the cost-effectiveness of deferred or lower cost highway and bridge design and maintenance activities and their impacts on long-term trunk highway costs and maintenance needs; (2) research on transportation policies that enhance energy efficiency and economic development; (3) programs for implementing and monitoring research results; and (4) development of transportation education and outreach activities.

(b) Of all funds appropriated to the commissioner other than state-aid funds, the commissioner shall spend at least 0.1 percent~~, but not exceeding $2,000,000 in any fiscal year,~~ for research and related activities performed by the Center for Transportation Studies of the University of Minnesota. The center shall establish a technology transfer and training center for Minnesota transportation professionals.

Sec. 33. Minnesota Statutes 2022, section 162.145, subdivision 2, is amended to read:

Subd. 2. Small cities assistance account. A small cities assistance account is created in the special revenue fund. The account consists of ~~funds as provided by law, and any other~~ money donated, allotted, transferred, or otherwise provided to the account. Money in the account is annually appropriated to the commissioner of transportation and may only be expended as provided under this section.

Sec. 34. Minnesota Statutes 2022, section 162.145, subdivision 3, is amended to read:

Subd. 3. Administration. (a) ~~Subject to funds made available by law,~~ The commissioner must allocate all funds in the small cities assistance account as provided in subdivision 4 and must, by June 1, certify to the commissioner of revenue the amounts to be paid.

(b) Following certification from the commissioner, the commissioner of revenue must distribute the specified funds to cities in the same manner as local government aid under chapter 477A. An appropriation to the commissioner under this section is available to the commissioner of revenue for the purposes specified in this paragraph.

(c) Notwithstanding other law to the contrary, in order to receive distributions under this section, a city must conform to the standards in section 477A.017, subdivision 2. A city that receives funds under this section must make and preserve records necessary to show that the funds are spent in compliance with subdivision 5.

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Sec. 35. Minnesota Statutes 2022, section 162.145, subdivision 4, is amended to read:

Subd. 4. Distribution formula. ~~(a) In each fiscal year in which funds are available under this section, the commissioner shall allocate funds to eligible cities.~~

~~(b)~~ (a) The preliminary aid to each city is calculated as follows:

(1) five percent of funds allocated equally among all eligible cities;

(2) 35 percent of funds allocated proportionally based on each city's share of lane miles of municipal streets compared to total lane miles of municipal streets of all eligible cities;

(3) 35 percent of funds allocated proportionally based on each city's share of population compared to total population of all eligible cities; and

(4) 25 percent of funds allocated proportionally based on each city's share of state-aid adjustment factor compared to the sum of state-aid adjustment factors of all eligible cities.

~~(c)~~ (b) The final aid to each city is calculated as the lesser of:

(1) the preliminary aid to the city multiplied by an aid factor; or

(2) the maximum aid.

~~(d)~~ (c) The commissioner shall set the aid factor under paragraph ~~(c)~~ (b), which must be the same for all eligible cities, so that the total funds allocated under this subdivision equals the total amount available for the fiscal year.

Sec. 36. [168.1258] "LIONS CLUBS INTERNATIONAL" PLATES.

Subdivision 1. Issuance of plates. The commissioner must issue "Lions Clubs International" special plates or a single motorcycle plate to an applicant who:

(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup truck, motorcycle, or recreational vehicle;

(2) pays a fee in the amount specified under section 168.12, subdivision 5, along with any other fees required by this chapter;

(3) pays the registration tax as required under section 168.013;

(4) contributes a minimum of $25 upon initial application and $5 annually to the Lions Clubs International account; and

(5) complies with this chapter and rules governing registration of motor vehicles and licensing of drivers.

Subd. 2. Design. The commissioner must adopt a suitable plate design that includes the recognized emblem of Lions Clubs International and the inscription "We Serve."

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Subd. 3. Plates transfer. On application to the commissioner and payment of a transfer fee of $5, special plates issued under this section may be transferred to another motor vehicle if the subsequent vehicle is:

(1) qualified under subdivision 1, clause (1), to bear the special plates; and

(2) registered to the same individual to whom the special plates were originally issued.

Subd. 4. Exemption. Special plates issued under this section are not subject to section 168.1293, subdivision 2.

Subd. 5. Contributions; account; appropriation. Contributions collected under subdivision 1, clause (4), must be deposited in the Lions Clubs International account, which is established in the special revenue fund. Money in the account is annually appropriated to the commissioner of public safety. This appropriation is first for the annual cost of administering the account funds, and the remaining funds are for distribution to Lions Clubs International to further the organization's mission of service, fellowship, diversity, integrity, and leadership.

EFFECTIVE DATE. This section is effective January 1, 2024, for "Lions Clubs International" special plates issued on or after that date.

Sec. 37. [168.1259] MINNESOTA PROFESSIONAL SPORTS TEAM FOUNDATION PLATES.

Subdivision 1. Definition. For purposes of this section, "Minnesota professional sports team" means one of the following teams while its home stadium is located in Minnesota: Minnesota Vikings, Minnesota Timberwolves, Minnesota Lynx, Minnesota Wild, Minnesota Twins, or Minnesota United.

Subd. 2. General requirements and procedures. (a) The commissioner must issue Minnesota professional sports team foundation plates to an applicant who:

(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup truck, motorcycle, or recreational vehicle;

(2) pays an additional fee in the amount specified for special plates under section 168.12, subdivision 5;

(3) pays the registration tax required under section 168.013;

(4) pays the fees required under this chapter;

(5) contributes a minimum of $30 annually to the professional sports team foundations account; and

(6) complies with this chapter and rules governing registration of motor vehicles and licensing of drivers.

(b) Minnesota professional sports team foundation plates may be personalized according to section 168.12, subdivision 2a.

Subd. 3. Design. At the request of a Minnesota professional sports team's foundation, the commissioner must, in consultation with the foundation, adopt a suitable plate design incorporating the foundation's marks and colors. The commissioner may design a single plate that incorporates the marks and colors of all foundations that have requested a plate.

Subd. 4. Plate transfers. On application to the commissioner and payment of a transfer fee of $5, special plates issued under this section may be transferred to another motor vehicle if the subsequent vehicle is:

(1) qualified under subdivision 2, clause (1), to bear the special plates; and

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(2) registered to the same individual to whom the special plates were originally issued.

Subd. 5. Contributions; account; appropriation. Contributions collected under subdivision 2, paragraph (a), clause (5), must be deposited in the Minnesota professional sports team foundations account, which is established in the special revenue fund. Money in the account is appropriated to the commissioner of public safety. This appropriation is first for the annual cost of administering the account funds, and the remaining funds are for distribution to the foundations in proportion to the total number of Minnesota professional sports team foundation plates issued for that year. Proceeds from a plate that includes the marks and colors of all foundations must be divided evenly between all foundations. The foundations must only use the proceeds for philanthropic or charitable purposes.

EFFECTIVE DATE. This section is effective January 1, 2024, for Minnesota professional sports team foundation special plates issued on or after that date.

Sec. 38. [168.1287] MINNESOTA BLACKOUT PLATES.

Subdivision 1. Issuance of plates. The commissioner must issue blackout special license plates or a single motorcycle plate to an applicant who:

(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup truck, motorcycle, or recreational vehicle;

(2) pays an additional fee in the amount specified for special plates under section 168.12, subdivision 5;

(3) pays the registration tax as required under section 168.013;

(4) pays the fees required under this chapter;

(5) contributes a minimum of $30 annually to the driver and vehicle services operating account; and

(6) complies with this chapter and rules governing registration of motor vehicles and licensing of drivers.

Subd. 2. Design. The commissioner must adopt a suitable plate design that includes a black background with white text.

(1) qualified under subdivision 1, clause (1), to bear the special plates; and

(2) registered to the same individual to whom the special plates were originally issued.

Subd. 4. Exemption. Special plates issued under this section are not subject to section 168.1293, subdivision 2.

Subd. 5. Contributions; account. Contributions collected under subdivision 1, clause (5), must be deposited in the driver and vehicle services operating account under section 299A.705.

EFFECTIVE DATE. This section is effective January 1, 2024, for blackout special plates issued on or after that date.

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Sec. 39. [168.1288] MINNESOTA MISSING AND MURDERED INDIGENOUS RELATIVES PLATES.

Subdivision 1. Issuance of plates. The commissioner must issue Minnesota missing and murdered Indigenous relatives special license plates or a single motorcycle plate to an applicant who:

(1) is a registered owner of a passenger automobile, noncommercial one-ton pickup truck, motorcycle, or recreational vehicle;

(2) pays an additional fee in the amount specified for special plates under section 168.12, subdivision 5;

(3) pays the registration tax as required under section 168.013;

(4) pays the fees required under this chapter;

(5) contributes a minimum of $25 annually to the Minnesota missing and murdered Indigenous relatives account; and

(6) complies with this chapter and rules governing registration of motor vehicles and licensing of drivers.

Subd. 2. Design. In consultation with the Office of Missing and Murdered Indigenous Relatives, the commissioner must adopt a suitable plate design that includes a red handprint to one side, a partial ribbon skirt toward the bottom corner, and reads "Missing and Murdered Indigenous Relatives" or "MMIR."

(1) qualified under subdivision 1, clause (1), to bear the special plates; and

(2) registered to the same individual to whom the special plates were originally issued.

Subd. 4. Exemption. Special plates issued under this section are not subject to section 168.1293, subdivision 2.

Subd. 5. Contributions; account; appropriation. Contributions collected under subdivision 1, clause (5), must be deposited in the Minnesota missing and murdered Indigenous relatives account, which is established in the special revenue fund. Money in the account is annually appropriated to the commissioner of public safety. This appropriation is first for the annual cost of administering the account funds, and the remaining funds are for distribution to the Office of Missing and Murdered Indigenous Relatives for investigation of unsolved cases and to establish a reward fund for information relating to missing and murdered Indigenous relatives.

EFFECTIVE DATE. This section is effective January 1, 2024, for Minnesota missing and murdered Indigenous relatives special plates issued on or after that date.

Sec. 40. Minnesota Statutes 2022, section 168.27, subdivision 31, is amended to read:

Subd. 31. Documentary fee. (a) A motor vehicle dealer may not charge a documentary fee or document administration fee in excess of the amounts provided under paragraph (b) for services actually rendered to, for, or on behalf of the retail buyer or lessee to prepare, handle, and process documents for the closing of a motor vehicle retail sale or lease of a vehicle being registered in the state of Minnesota. The fee must be separately stated on the sales agreement maintained under Minnesota Rules, part 7400.5200, and may be excluded from the dealer's advertised price.

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(b) For motor vehicle sales or leases made on or after July 1, ~~2017~~ 2023, through June 30, ~~2020~~ 2024, the maximum fee is ~~$100~~ the lesser of $200 or an amount equal to ten percent of the value of the sale or lease. For motor vehicle sales or leases made on or after July 1, ~~2020~~ 2024, through June 30, 2025, the maximum fee is ~~$125~~ the lesser of $275 or an amount equal to ten percent of the value of the sale or lease. For motor vehicle sales or leases made on or after July 1, 2025, the maximum fee is the lesser of $350 or an amount equal to ten percent of the value of the sale or lease.

(c) "Documentary fee" and "document administration fee" do not include an optional electronic transfer fee as defined under section 53C.01, subdivision 14.

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

Sec. 41. Minnesota Statutes 2022, section 168.326, is amended to read:

168.326 EXPEDITED DRIVER AND VEHICLE SERVICES; FEE.

(a) When an applicant requests and pays an expedited service fee of $20, in addition to other specified and statutorily mandated fees and taxes, the commissioner shall expedite the processing of an application for a driver's license, driving instruction permit, Minnesota identification card, or vehicle title transaction.

(b) A driver's license agent or deputy registrar may retain $10 of the expedited service fee for each expedited service request processed by the licensing agent or deputy registrar.

(c) When expedited service is requested, materials must be mailed or delivered to the requester within three days of receipt of the expedited service fee excluding Saturdays, Sundays, or the holidays listed in section 645.44, subdivision 5. The requester shall comply with all relevant requirements of the requested document.

(d) The commissioner may decline to accept an expedited service request if it is apparent at the time it is made that the request cannot be granted.

(e) The expedited service fees collected under this section ~~for an application for a driver's license, driving instruction permit, or Minnesota identification card~~ minus any portion retained by a licensing agent or deputy registrar under paragraph (b) must be paid into the driver and vehicle services operating account ~~in the special revenue fund specified~~ under section 299A.705.

(f) The expedited service fees collected under this section for a transaction for a vehicle service minus any portion retained by a licensing agent or deputy registrar under paragraph (b) must be paid into the vehicle services operating account in the special revenue fund specified under section 299A.705.

Sec. 42. Minnesota Statutes 2022, section 169.011, subdivision 27, is amended to read:

Subd. 27. Electric-assisted bicycle. "Electric-assisted bicycle" means a bicycle with two or three wheels that:

(1) has a saddle and fully operable pedals for human propulsion;

(2) meets the requirements for bicycles under Code of Federal Regulations, title 16, part 1512, or successor requirements;

(3) is equipped with an electric motor that has a power output of not more than 750 watts; ~~and~~

(4) meets the requirements of a class 1, class 2, or class 3 electric-assisted bicycle; and

(5) has a battery or electric drive system that has been tested to an applicable safety standard by a third-party testing laboratory.

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Sec. 43. [169.065] SAFE ROAD ZONES.

Subdivision 1. Definition. For purposes of this section, "local request" means a formal request collectively submitted by the chief law enforcement officer of a political subdivision serving the proposed safe road zone, the local road authority for the proposed safe road zone, and the chief executive officer, board, or designee by resolution of the political subdivision encompassing the proposed safe road zone.

Subd. 2. Establishment. (a) The commissioner may designate a safe road zone as provided in this section.

(b) Upon receipt of a local request, the commissioner, in consultation with the commissioner of public safety, must consider designating a segment of a street or highway as a safe road zone. In determining the designation of a safe road zone, the commissioner must evaluate traffic safety concerns for the street or highway, including but not limited to: excessive speed; crash history; safety of pedestrians, bicyclists, or other vulnerable road users; intersection risks; and roadway design.

Subd. 3. Implementation. The Advisory Council on Traffic Safety under section 4.076 must make recommendations to the commissioners of public safety and transportation on supporting the local authority with implementation of safety measures for each safe road zone through education, public awareness, behavior modification, and traffic engineering efforts. Safety measures for a safe road zone may include:

(1) providing safe road zone signs to the local authority for use in the zone;

(2) consulting with the local authority on roadway design modifications to improve safety;

(3) performing statewide safe road zone public awareness and educational outreach;

(4) providing safe road zone outreach materials to the local authority for distribution to the general public;

(5) working with the local authority to enhance safety conditions in the zone;

(6) establishing a speed limit as provided under section 169.14, subdivision 5i, with supporting speed enforcement and education measures; and

(7) evaluating the impacts of safety measures in the zone on: crashes; injuries and fatalities; property damage; transportation system disruptions; safety for vulnerable roadway users, including pedestrians and bicyclists; and other measures as identified by the commissioner.

Subd. 4. Traffic enforcement. The commissioner of public safety must coordinate with local law enforcement agencies to determine implementation of enhanced traffic enforcement in a safe road zone designated under this section.

Subd. 5. Program information. The commissioner of transportation must maintain information on a website that summarizes safe road zone implementation, including but not limited to identification of requests for and designations of safe road zones, an overview of safety measures and traffic enforcement activity, and a review of annual expenditures.

Sec. 44. Minnesota Statutes 2022, section 169.14, is amended by adding a subdivision to read:

Subd. 5i. Speed limits in safe road zone. (a) Upon request by the local authority, the commissioner may establish a temporary or permanent speed limit in a safe road zone designated under section 169.065, other than the limits provided in subdivision 2, based on an engineering and traffic investigation.

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(b) The speed limit under this subdivision is effective upon the erection of appropriate signs designating the speed and indicating the beginning and end of the segment on which the speed limit is established. Any speed in excess of the posted limit is unlawful.

Sec. 45. Minnesota Statutes 2022, section 169.18, subdivision 11, is amended to read:

Subd. 11. Passing parked authorized vehicle; citation; probable cause. (a) For purposes of this subdivision, "authorized vehicle" means an authorized emergency vehicle, as defined under section 169.011, subdivision 3; a tow truck or towing vehicle, as defined under section 168B.011, subdivision 12a; a freeway service patrol vehicle; a road maintenance vehicle; a utility company vehicle; a construction vehicle; a postal service vehicle; a solid waste vehicle; or a recycling vehicle.

(b) When approaching and before passing an authorized vehicle with its emergency, flashing, or warning lights activated that is parked or otherwise stopped on or next to a street or highway having two lanes in the same direction, the driver of a vehicle ~~shall~~ must safely move the vehicle to the lane farthest away from the authorized vehicle, if it is possible to do so.

(c) When approaching and before passing an authorized vehicle with its emergency, flashing, or warning lights activated that is parked or otherwise stopped on or next to a street or highway having more than two lanes in the same direction, the driver of a vehicle ~~shall~~ must safely move the vehicle so as to leave a full lane vacant between the driver and any lane in which the authorized vehicle is completely or partially parked or otherwise stopped, if it is possible to do so.

(d) If a lane change under paragraph (b) or (c) is impossible, or when approaching and before passing an authorized vehicle with its emergency, flashing, or warning lights activated that is parked or otherwise stopped on or next to a street or highway having only one lane in the same direction, the driver of a vehicle must reduce the speed of the motor vehicle to a speed that is reasonable and prudent under the conditions until the motor vehicle has completely passed the parked or stopped authorized vehicle, if it is possible to do so.

(e) A peace officer may issue a citation to the driver of a motor vehicle if the peace officer has probable cause to believe that the driver has operated the vehicle in violation of this subdivision within the four-hour period following the termination of the incident or a receipt of a report under paragraph (f). The citation may be issued even though the violation was not committed in the presence of the peace officer.

(f) Although probable cause may be otherwise satisfied by other evidentiary elements or factors, probable cause is sufficient for purposes of this subdivision when the person cited is operating the vehicle described by a member of the crew of an authorized emergency vehicle or a towing vehicle as defined in section 168B.011, subdivision 12a, responding to an incident in a timely report of the violation of this subdivision, which includes a description of the vehicle used to commit the offense and the vehicle's license plate number. For the purposes of issuance of a citation under paragraph (e), "timely" means that the report must be made within a four-hour period following the termination of the incident.

Sec. 46. Minnesota Statutes 2022, section 169.18, is amended by adding a subdivision to read:

Subd. 11a. Passing stalled or disabled vehicle. (a) For purposes of this subdivision, "stalled vehicle" means any motor vehicle that is disabled, parked, inoperable, or otherwise stopped on or next to a street or highway.

(b) When approaching and before passing a stalled vehicle with either its hazard lights activated or people visibly present outside the vehicle on or next to a street or highway having two lanes in the same direction, the driver of a vehicle must, if it is possible to do so, safely move the vehicle to the lane farthest away from the stalled vehicle.

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(c) When approaching and before passing a stalled vehicle with either its hazard lights activated or people visibly present outside the vehicle on or next to a street having two or more lanes in the same direction, the driver of a vehicle must, if it is possible to do so, safely move the vehicle so as to leave a full lane vacant between the driver and any lane in which the stalled vehicle is completely or partially parked or otherwise stopped.

(d) If a lane change under paragraph (b) or (c) is impossible when approaching and before passing a stalled vehicle with either its hazard lights activated or people visibly present outside the vehicle on or next to a street or highway having only one lane in the same direction, the driver of a vehicle must reduce the speed of the motor vehicle to a speed that is reasonable and prudent under the conditions until the motor vehicle has completely passed the stalled vehicle, if it is possible to do so.

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

Sec. 47. Minnesota Statutes 2022, section 169.222, subdivision 4, is amended to read:

Subd. 4. Riding rules. (a) Every person operating a bicycle ~~upon a roadway shall~~ on a road must ride as close ~~as practicable~~ to the right-hand curb or edge of the ~~roadway except under any of the following situations~~ road as the bicycle operator determines is safe. A person operating a bicycle is not required to ride as close to the right-hand curb or edge when:

(1) ~~when~~ overtaking and passing another vehicle proceeding in the same direction;

(2) ~~when~~ preparing for a left turn at an intersection or into a private road or driveway;

(3) ~~when~~ reasonably necessary to avoid conditions that make it unsafe to continue along the right-hand curb or edge, including fixed or moving objects, vehicles, pedestrians, animals, surface hazards, or ~~narrow width~~ narrow‑width lanes~~, that make it unsafe to continue along the right-hand curb or edge; or~~;

(4) ~~when~~ operating on the shoulder of a roadway or in a bicycle lane.; or

(5) operating in a right-hand turn lane before entering an intersection.

(b) If a bicycle is traveling on a shoulder of a roadway, the bicycle ~~shall~~ operator must travel in the same direction as adjacent vehicular traffic.

(c) Persons riding bicycles upon a roadway or shoulder ~~shall~~ must not ride more than two abreast and ~~shall not impede the normal and reasonable movement of traffic and~~, on a laned roadway, shall ride within a single lane.

(d) A person operating a bicycle upon a sidewalk, or across a roadway or shoulder on a crosswalk, ~~shall~~ must yield the right-of-way to any pedestrian and ~~shall~~ give an audible signal when necessary before overtaking and passing any pedestrian. No A person ~~shall~~ must not ride a bicycle upon a sidewalk within a business district unless permitted by local authorities. Local authorities may prohibit the operation of bicycles on any sidewalk or crosswalk under their jurisdiction.

(e) An individual operating a bicycle or other vehicle on a bikeway ~~shall~~ must (1) give an audible signal a safe distance prior to overtaking a bicycle or individual, (2) leave a safe clearance distance when overtaking a bicycle or individual proceeding in the same direction ~~on the bikeway~~, and ~~shall~~ (3) maintain clearance until safely past the overtaken bicycle or individual.

(f) Notwithstanding section 169.06, subdivision 4, a bicycle operator may cross an intersection proceeding from the leftmost one-third of a dedicated right-hand turn lane without turning right.

EFFECTIVE DATE. This section is effective August 1, 2023.

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Sec. 48. Minnesota Statutes 2022, section 169.222, is amended by adding a subdivision to read:

Subd. 4a. Stopping requirements. (a) For purposes of this subdivision, "in the vicinity" means located in an intersection or approaching an intersection in a manner that constitutes a hazard of collision during the time that a bicycle operator would occupy the intersection.

(b) A bicycle operator who approaches a stop sign must slow to a speed that allows for stopping before entering the intersection or the nearest crosswalk. Notwithstanding subdivision 1 and section 169.06, subdivision 4, if there is not a vehicle in the vicinity, the operator may make a turn or proceed through the intersection without stopping.

(c) Nothing in this subdivision alters the right-of-way requirements under section 169.20. The provisions under this subdivision do not apply when traffic is controlled by a peace officer or a person authorized to control traffic under section 169.06.

EFFECTIVE DATE. This section is effective August 1, 2023.

Sec. 49. Minnesota Statutes 2022, section 169.345, subdivision 2, is amended to read:

Subd. 2. Definitions. (a) For the purpose of section 168.021 and this section, the following terms have the meanings given them in this subdivision.

(b) "Health professional" means a licensed physician, licensed physician assistant, advanced practice registered nurse, licensed physical therapist, or licensed chiropractor.

(c) "Long-term certificate" means a certificate issued for a period greater than 12 months but not greater than 71 months.

(d) "Organization certificate" means a certificate issued to an entity other than a natural person for a period of three years.

(e) "Permit" refers to a permit that is issued for a period of 30 days, in lieu of the certificate referred to in subdivision 3, while the application is being processed.

(f) "Physically disabled person" means a person who:

(1) because of disability cannot walk without significant risk of falling;

(2) because of disability cannot walk 200 feet without stopping to rest;

(3) because of disability cannot walk without the aid of another person, a walker, a cane, crutches, braces, a prosthetic device, or a wheelchair;

(4) is restricted by a respiratory disease to such an extent that the person's forced (respiratory) expiratory volume for one second, when measured by spirometry, is less than one liter;

(5) has an arterial oxygen tension (PaO 2) of less than 60 mm/Hg on room air at rest;

(6) uses portable oxygen;

(7) has a cardiac condition to the extent that the person's functional limitations are classified in severity as class III or class IV according to standards set by the American Heart Association;

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(8) has lost an arm or a leg and does not have or cannot use an artificial limb; or

(9) has a disability that would be aggravated by walking 200 feet under normal environmental conditions to an extent that would be life threatening.; or

(10) is legally blind.

(g) A pregnant person experiencing any of the conditions described in paragraph (f) is eligible for parking privileges pursuant to this section.

~~(g)~~ (h) "Short-term certificate" means a certificate issued for a period greater than six months but not greater than 12 months.

~~(h)~~ (i) "Six-year certificate" means a certificate issued for a period of six years.

~~(i)~~ (j) "Temporary certificate" means a certificate issued for a period not greater than six months.

Sec. 50. Minnesota Statutes 2022, section 169.475, subdivision 2, is amended to read:

Subd. 2. Prohibition on use; penalty. (a) Except as provided in subdivision 3, when a motor vehicle is in motion or a part of traffic, the person operating the vehicle upon a street or highway is prohibited from:

(1) holding a wireless communications device with one or both hands; or

(2) using a wireless communications device to:

~~(1)~~ (i) initiate, compose, send, retrieve, or read an electronic message;

~~(2)~~ (ii) engage in a cellular phone call, including initiating a call, talking or listening, and participating in video calling; and

~~(3)~~ (iii) access the following types of content stored on the device: video content, audio content, images, games, or software applications.

(b) A person who violates paragraph (a) a second or subsequent time must pay a fine of $275.

EFFECTIVE DATE. This section is effective August 1, 2023, and applies to violations committed on or after that date.

Sec. 51. Minnesota Statutes 2022, section 169.475, subdivision 3, is amended to read:

Subd. 3. Exceptions. (a) The prohibitions in subdivision 2 do not apply if a person uses a wireless communications device:

(1) solely in a voice-activated or hands-free mode to (i) initiate or participate in a cellular phone call, provided that the person does not hold the device with one or both hands; or to (ii) initiate, compose, send, or listen to an electronic message;

(2) to view or operate a global positioning system or navigation system in a manner that does not require the driver to type while the vehicle is in motion or a part of traffic, provided that the person does not hold the device with one or both hands;

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(3) to listen to audio-based content in a manner that does not require the driver to scroll or type while the vehicle is in motion or a part of traffic, provided that the person does not hold the device with one or both hands;

(4) to obtain emergency assistance to (i) report a traffic accident, medical emergency, or serious traffic hazard, or (ii) prevent a crime about to be committed;

(5) in the reasonable belief that a person's life or safety is in immediate danger; or

(6) in an authorized emergency vehicle while in the performance of official duties.

(b) The exception in paragraph (a), clause (1), does not apply to accessing nonnavigation video content, engaging in video calling, engaging in live-streaming, accessing gaming data, or reading electronic messages.

EFFECTIVE DATE. This section is effective August 1, 2023, and applies to violations committed on or after that date.

Sec. 52. Minnesota Statutes 2022, section 169.8261, is amended to read:

169.8261 ~~GROSS WEIGHT LIMITATIONS;~~ FOREST PRODUCTS SPECIAL PERMIT.

Subdivision 1. ~~Exemption~~ Definition. ~~(a)~~ For purposes of this section, "raw or unfinished forest products" include wood chips, paper, pulp, oriented strand board, laminated strand lumber, hardboard, treated lumber, untreated lumber, or barrel staves.

(b) In compliance with this section, a person may operate a vehicle or combination of vehicles to haul raw or unfinished forest products by the most direct route to the nearest paved highway on any highway with gross weights permitted under sections 169.823 to 169.829.

Subd. 1a. Six-axle and over-width vehicle permit. (a) A road authority may issue an annual permit authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw or unfinished forest products by the most direct route to the nearest paved highway on any highway with gross weights permitted under sections 169.823 to 169.829 and be operated with:

(1) a gross vehicle weight of up to:

(i) 90,000 pounds; and

(ii) 99,000 pounds during the period set by the commissioner under section 169.826, subdivision 1; and

(2) a total outside width of the vehicle or the load that does not exceed 114 inches.

(b) In addition to the conditions in subdivision 2, a vehicle or combination of vehicles that is operated with a permit under this subdivision and transporting a load that exceeds 108 inches must:

(1) display red or orange flags, 18 inches square, as markers at the front and rear and on both sides of the load; and

(2) not be operated on any road in a metropolitan county, as defined in section 473.121, subdivision 4.

(c) A vehicle or combination of vehicles with a permit under this subdivision may only be operated on an interstate highway:

(1) as provided under United States Code, title 23, section 127(q), for operation on the specified segment of marked Interstate Highway 35; or

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(2) if the gross vehicle weight does not exceed 80,000 pounds.

Subd. 2. Conditions. (a) A vehicle or combination of vehicles ~~described in subdivision 1~~ operated under this section must:

(1) comply with seasonal load restrictions in effect between the dates set by the commissioner under section 169.87, subdivision 2;

(2) comply with bridge load limits posted under section 169.84;

(3) be equipped and operated with six or more axles and brakes on all wheels;

~~(4) not exceed 90,000 pounds gross vehicle weight, or 99,000 pounds gross vehicle weight during the time when seasonal increases are authorized under section 169.826;~~

~~(5) not be operated on interstate highways;~~

~~(6) obtain an annual permit from the commissioner of transportation;~~

(4) be operated under a permit issued by each road authority having jurisdiction over a road on which the vehicle is operated, if required by the ro