Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
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St. Paul, MN 55155
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Tom Bottern
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 1060 - Transportation Omnibus Bill (5th Engrossment)
 
Author: Senator Scott J. Newman
 
Prepared By: Krista Boyd, Senate Fiscal Analyst (651/296-7681)
Alexis C. Stangl, Senate Counsel (651/296-4397)
 
Date: April 3, 2017



 

Article 1.  Transportation Appropriations.

Section 1.  Transportation appropriations. All appropriations in this article are from the trunk highway fund unless another fund is specified. 

Section 2. Department of Transportation.

Subdivision 1. Total MnDOT Appropriations.  Contains the total appropriations to the Department of Transportation by fund.     

Subdivision 2. Multimodal systems. 

  1. Aeronautics.
    1. Appropriates $26.5 million in FY18 and $17.3 million in FY19 for airport development and assistance. Of the appropriation in FY18, $2.3 million is for improvements at the Rochester International Airport, $6.6 million is for runway infrastructure at Duluth International and Sky Harbor Airports, and $250,000 is for an air transport optimization planning study for the St. Cloud Regional Airport.
    2. Appropriates $6.8 million in FY18 and $6.9 million in FY 19 for aviation support and services.  $80,000 in each year is for the Civil Air Patrol.
  2. Transit. Appropriates $18.1 million in FY18 and $18.1 million in FY19 for Greater Minnesota transit.
  3. Freight. Appropriates $6.7 million in FY18 and $5.8 million in FY19 for freight purposes, of which $1.1 million in FY 18 is a onetime carryforward appropriation for port development assistance grants. 

Subdivision 3. State Roads.

  1. Operations and Maintenance.  Appropriates $332.8 million in FY18 and $343.2 million in FY19 for operations and maintenance.
  2. Program Planning and Delivery.  Appropriates $257.5 million in FY18 and $265.5 million in FY19 for state road system investment and planning.  Of these appropriations:
  • $130,000 in each year is for administrative costs of the targeted group business program;
  • $266,000 in each year is for grants to metropolitan planning organizations outside the seven-county metro area;
  • $900,000 in each year is for transportation studies grants outside the metropolitan area; and
  • $1 million in each year is for management of contaminated and regulated material on MNDOT property.
  1. State Road Construction. Appropriates $1.009 billion in FY18 and $942.3 million in FY19 from the trunk highway fund for construction and improvement of trunk highways and for turnback projects.  Of these amounts:
    • up to one-half of one percent of the federal highway funds included in the appropriation may be used for highway construction-related job training center grants; and
    • up to $15 million each year may be used for the transportation revolving loan fund. 
  2. Highway Debt Service.  Appropriates $224.3 million in FY18 and $241.8 million in FY19 for highway debt service.  Allows the Commissioner of Management and Budget to transfer an additional amount if this appropriation is insufficient to make all transfers required in a given year.
  3. Electronic Communications.  Appropriates $5.6 million in FY18 and $5.8 million in FY19 from the trunk highway fund for electronic communications.  An additional $3,000 in each year is appropriated from the general fund to equip and operate the Roosevelt signal tower.

Subdivision 4. Local Roads.

  1. County State Aid Roads.  Appropriates $769.6 million in FY18 and $800.1 million in FY19 from the county state aid highway fund for distribution to counties.
  2. Municipal State Aid Roads.  Appropriates $195.9 million in FY18 and $203.5 million in FY19 from the municipal state aid street fund for distribution to cities with a population of over 5,000.
  3. Small Cities Assistance. Appropriates $10 million in FY18 only from the small cities assistance account in the special revenue fund.

Subdivision 5.  Agency Management.

  1. Agency Services.  Appropriates $44.3 million in FY18 and $45.2 million in FY19 for department support.
  2. Buildings. Appropriates $20.1 million in FY18 and $20.9 million in FY19 for building needs.
  3. Tort Claims. Appropriates $600,000 in each year from the trunk highway fund for tort claims.    

Subdivision 6.  Transfers.  Allows the commissioner, with approval of the commissioner of management and budget, to transfer among the appropriations for trunk highway fund and state airports fund contained in this article.  Any such transfers may not be made between funds, and may not be made from the appropriations for state road construction or debt service.  Transfers under this subdivision must be reported to the legislature. 

Subdivision 7. Previous State Road Construction Appropriations.  Specifies that money appropriated for state road construction for any fiscal year before FY18 is available during FY18 and FY19, provided the money is spent on the project for which the money was originally encumbered.  The commissioner must report to the legislature by August 1 of each year on expenditures made under this subdivision.

Subdivision 8.  Contingent Appropriation.  Allows the commissioner, with approval of the Governor and the majority of a group consisting of the Legislative Advisory Commission and ranking minority members of the House and Senate transportation finance committees, to transfer all or part of the 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 or federal advance construction funding;

(2) for trunk highway maintenance in order to meet an emergency; or

(3) to pay tort or environmental claims.

Specifies that any transfer as a result of using federal advance construction funding must include an analysis of the effects on the long-term trunk highway fund balance. Does not authorize commissioner to increase federal advanced construction funding beyond specifically authorized amounts. 

Section 3.  Metropolitan Council.  Appropriates $90.8 million in FY18 and $89.8 million FY19 for metropolitan transit system operations, of which $1.0 million in FY 18 is a onetime appropriation for financial assistance to replacement service providers for a transit demonstration project. 

Section 4.  Department of Public Safety.

Subdivision 1. Total Public Safety Appropriations.  Contains the total appropriations to the Department of Public Safety transportation-related programs by fund.           

Subdivision 2. Administration and Related Services. 

  1. Office of Communications.  Appropriates $530,000 in FY18 and FY19 for the office of communications.
  2. Public Safety Support.  Appropriates $8.9 million in FY18 and FY19 for public safety support.  Specifies that $640,000 each year is for payment of public safety survivor benefits; $1.367 million each year is for the public safety officer’s benefit account; and $700,000 each year is for soft body armor reimbursements. 
  3. Technology and Support Service.  Appropriates $3.7 million in FY18 and FY19 for technical support services. 

Subdivision 3. State Patrol. 

  1. Patrolling Highways.   Appropriates $88.4 million in FY18 and FY19 for patrolling highways.
  2. Commercial Vehicle Enforcement.  Appropriates $8.3 million in FY18 and FY19 for commercial vehicle enforcement.
  3. Capitol Security. Appropriates $8.1 million in FY18 and FY19 from the general fund for capitol security. 

Subdivision 4. Driver and Vehicle Services. 

  1. Vehicle Services.   Appropriates $30.1 million in FY18 and FY19 for vehicle services.    
  2. Driver Services.  Appropriates $30.9 million in FY18 and FY19 for driver services, of which $156,000 in each year is for maintenance of the automated knowledge test system.  

Subdivision 5. Traffic Safety.  Appropriates $457,000 in FY18 and FY19 for the Office of Traffic Safety. 

Subdivision 6. Pipeline Safety.  Appropriates $1.4 million in FY18 and FY19 from the pipeline safety account in the special revenue fund for pipeline safety.

Section 5.  Appropriation Cancellation.  Cancels $1.1 million of a FY16 appropriation from the general fund for port development assistance grants. This amount is carried forward to FY18 and appropriated in that year to MNDOT for the same purpose, in this bill.

Section 6. Department of Transportation; Appropriation.  Appropriates $105 million in FY17 from the trunk highway fund to account for an equal amount of federal highway aid revenue to that fund. This appropriation is effective immediately following enactment.

Article 2.  Trunk Highway Bonding.

Section 1.  Bond Sale Authorization.  Authorizes the sale of $325.325 million in trunk highway bonds. 

Section 2. Bond Appropriations.  Summarizes the amount of bond appropriations to each agency: $325 million to MNDOT and $325,000 to the Department of Management and Budget. 

Section 3. Department of Transportation Corridors of Commerce.  Appropriates $50 million in each of fiscal years 2018 through 2021 for the corridors of commerce program. 

Section 4. U.S. Highway 12 Projects.  Appropriates $15 million in FY18 for design, engineering, environmental analysis, right-of-way acquisition, construction and reconstruction of projects on marked U.S. Highway 12. 

Section 5. Marked Trunk Highway 212.  Appropriates $20 million in FY18 for right-of-way acquisition, construction and reconstruction of TH 212 as a four-lane divided highway in Carver County. 

Section 6. Marked Trunk Highway 14.  Appropriates $90 million in FY18 for right-of-way acquisition, construction and reconstruction of TH 14 as a four-lane divided highway from Owatonna to Dodge Center. 

Section 7. Bond Sale Expenses.  Appropriates $325,000 for bond sale expenses, of which $175,000 is available in FY18 and $50,000 is available in each of fiscal years 2019 through 2021.

Article 3. Transportation Finance.

Section 1.  Distribution of five percent. The distribution of the five percent set-aside of the highway user tax distribution fund is modified.  Instead of 53.5 percent apportioned to the flexible highway account, 53.5 percent will be apportioned to the trunk highway fund. The other distributions to town roads and town bridges are unchanged.

Section 2.  Motor vehicle lease sales tax revenue.  Removes the $32 million general fund set aside from revenues from the sales tax on motor vehicle leases, and distributes total tax revenues as follows: 36 percent to the county state-aid highway fund; 36 percent to the greater Minnesota transit account (to be allocated to the counties of Anoka, Carver, Dakota, Scott and Washington); and the remainder to the highway user tax distribution fund.  In 2018, $10 million is transferred to the small cities assistance account; this is a onetime transfer.  This section is effective for the estimate that must be completed before June 30 for a transfer to occur by July 15, 2018.  (S.F. No. 1879, Jasinski)

Section 3. Deposit of revenue.  Dedicates the total revenues from two rental vehicle taxes to the highway user tax distribution fund:

  • the rental motor vehicle tax (9.2 percent tax rate); and
  • the revenue from the sales tax on the lease or rental for not more than 28 days of motor vehicles (6.5 percent tax rate). The commissioner must estimate the amount of the revenues from this tax based on the amount of revenue collected from the 9.2 percent rental motor vehicle tax.

Further, a specified amount is dedicated from the sales tax revenue collected on the sale of motor vehicle repair and replacement parts to the highway user tax distribution fund.  This section is effective July 1, 2017. (S.F. No. 990, Fischbach; S.F. No. 1879, Jasinski)

Section 4. Authorization; rates.  A county that is a member of the Counties Transit Improvement Board (CTIB) may impose an additional one-fifth of one percent transportation sales and use tax. (Counties that are currently members of CTIB are Anoka, Dakota, Hennepin, Ramsey and Washington.) The proceeds of the tax must be used for specified purposes related to transportation. Before imposing the tax, a majority of voters must approve the imposition of the tax at a general election.

Article 4.  Transportation Policy.

Section 1Bicycle trail program.  Department of Natural Resources statute on the bicycle trail program is amended to correspond to changes made later in this article.  (S.F. No. 827, Dibble)

Section 2.  Clean Air Act settlement money.  The Commissioner of Management and Budget must deposit Clean Air act settlement money into the Clean Air Act settlement account in the environment account.  Clean Air Act settlement money must not be spent until specifically appropriated by law. Once all funds are expended, the commissioner must eliminate the account. (S.F. No. 914, Bakk)

Section 3.  Bikeway.  Defines “bikeway” as a lane, path, route, regardless of whether designated for the exclusive use of bicycles or shared use. (S.F. No. 827, Dibble)

Section 4.  Roadway; bicycle lane; bicycle route; bicycle path.  Strikes a reference to the previous definition of “bikeway.”  (S.F. No. 827, Dibble)

Section 5.  Share use path.  Defines “shared use path” as a bicycle facility that is physically separated from motorized traffic, located within highway right-of-way or independent right-of-way and available for use by other non-motorized users.  (S.F. No. 827, Dibble)

Section 6.  Powers.  Deletes an outdated requirement for the Commissioner of Transportation to adopt model requirements for establishment of recreational vehicle lanes along public highways. It specifies that the commissioner has the authority to plan, design, establish, and maintain bikeways on the right-of-way of trunk highways. Bikeway design guidelines designed by the commissioner must be consistent with state transportation goals as provided in statute.  The commissioner must compile and maintain a map of state bikeways, which must be published every two years. This requirement replaces the requirement to compile and maintain a registry of bikeways under a section repealed in this bill.  The commissioner must maintain bikeways within limits of trunk highway rights-of-way unless a written agreement or limited use permit provides otherwise.  (S.F. No. 827, Dibble)

Section 7.  Cooperation among agencies and governments.  Removes the named agencies that must advise the commissioner on bikeway design guidelines (formerly “model standards”), and replaces them with the existing “nonmotorized transportation advisory committee.” This section also allows the commissioner to cooperate and enter into agreements with tribal governments regarding bikeway design guidelines.  (S.F. No. 827, Dibble)

Section 8.  Design-build bridges for nonmotorized vehicles.  Replaces the terms “bicycle paths” and “bicycle trails” with “bikeways” in the section of statute on bids for nonmotorized vehicle bridges.  (S.F. No. 827, Dibble)

Section 9.  State bicycle route; definition.  Defines “state bicycle route” as a series of one or more roads or bikeways designated for bicycle travel.  (S.F. No. 827, Dibble)

Section 10.  State bicycle routes.   Requires the commissioner to identify state bicycle routes on existing right-of-way and trails, in cooperation with named entities.  (S.F. No. 827, Dibble)

Section 11.  Connections with other bikeways.  Updates the section of statute regarding connections with other bikeways to replace “bikeway” with “state bicycle route.”  (S.F. No. 827, Dibble)

Section 12.  Cooperation with other entities.  Authorizes the commissioner to enter into agreements and contracts with tribal governments in order to fulfill duties relating to state bicycle routes (which replaces the term “bikeway” in this section).  (S.F. No. 827, Dibble)

Section 13.  Fundings.  Updates the section on funding with the new terms “shared use path” and “state bicycle routes.”  (S.F. No. 827, Dibble)

Section 14.  Mississippi River trail.  Moves the description of the Mississippi River Trail bikeway to a different section of the same statute.  (S.F. No. 827, Dibble)

Section 15.  North Star Bicycle Route.  Establishes the North Star State Bicycle Route, starting in St. Paul and ending at the Canadian border.  No trunk highway funds may be spent on constructing, making, or maintaining this route.  (S.F. No. 827, Dibble)

Section 16.  Project eligibility.  Removes language that directs the Commissioner of Transportation to establish the Corridors of Commerce (COC) program eligibility requirements.  Eligibility requirements are listed in statute.  (S.F. No. 1525, Jasinski)

Section 17.  Project selection process; criteria.  The process for identifying, evaluating and selecting COC projects, as established by the commissioner, must be consistent with requirements as listed in statute and must not include any other selection criteria. The commissioner is directed to adopt a policy that assigns weights to program criteria and assigns each potential project a score based on these criteria. The list of prioritized projects must be made public.  (S.F. No. 1525, Jasinski)

Section 18.  Corridors of Commerce long-term plan.  Directs the commissioner to create a COC long-term plan that includes and prioritizes COC eligible projects.  (S.F. No. 1525, Jasinski)

Section 19.  Legislative report; evaluation.  Changes are made to the required annual legislative report on the COC program. The report must include the policy required under section 17 of this bill, a list of all evaluated projects and their scores, and the eligibility determination for all candidate project recommendations.  (S.F. No. 1525, Jasinski)

Section 20.  Route No. 259.  Makes a conforming change related to the turnback in section 43. (S.F. No. 1059, Newman)

Section 21.  Senator Jim Metzen Memorial Highway.  Highway 52 in Dakota County is designated as the "Senator Jime Metzen Memorial Highway."

Section 22.  Location and design of highway.  Updates the section of statute on location and design of highways with the new term “bikeway.” (S.F. No. 827, Dibble)

Section 23.  Rules; eligibility.  Deletes the sunset on targeted group business participation in MnDOT’s bid preference program. (S.F. No. 1060, Newman)

Section 24.  Conveyance to the highest bidder in certain cases.  In certain circumstances, MnDOT may offer to sell excess trunk highway land to the owner of abutting property based on appraised market value. (S.F. No. 1059, Newman)

Section 25.  Services of licensed real estate broker.  If unsold lands are withdrawn from sale as provided in section 4, a licensed real estate broker may be retained to find a buyer. (S.F. No. 1059, Newman)

Section 26.  Unsold lands.  If lands remains unsold after being offered for sale to the highest bidder, the commissioner may offer the land to any person who agrees to pay the minimum bid. The sale continues until all land is sold or the land is withdrawn from sale. The land must be on MnDOT’s unsold property inventory list.  (S.F. No. 1059, Newman)

Section 27.  St. Louis County Road 128. Lowers the speed limit from 45 to 40 miles per hour on St. Louis County Road 128 in Eagles Nest Township.  This section of road is the "Senator Scott Newman Scenic Byway."

Section 28.  Limitations; misdemeanor.  Makes a technical change to move an existing weight limit exemption for fire apparatus to a new subdivision.  This section is effective the day following enactment. (S.F. No. 2091, Lang)

Section 29.  Certain emergency vehicles.  Establishes motor vehicle weight limit exemptions for police special response vehicles and ambulances. This section is effective the day following enactment.  (S.F. No. 2091, Lang)

Section 30.  Requirements; restrictions.  A vehicle hauling milk under an overweight permit issued by the commissioner of transportation may also operate on interstate highways. This is consistent with a change in the federal FAST Act that allows overweight milk trucks on interstate highways. (S.F. No. 1060, Newman)

Section 31.  Certain convictions not recorded.  The department must not keep on the record any speeding violations of less than ten m.p.h. over the speed limit on interstate 35E in St. Paul.  The provision that prohibits the department of certain speeding convictions from appearing on a person’s driving record (often referred to as the “Dimler amendment”) do not apply to individuals with a commercial driver learner’s permit. (S.F. No. 1060, Newman)

Section 32.  Revision of statewide multimodal transportation plan.  Requires the Commissioner of Transportation to revise the statewide multimodal transportation plan by 2022 and every five years after that. Current law requires the plan to be updated every four years. (S.F. No. 1060, Newman)

Section 33.  Statewide highway 20-year capital investment plan.  Within one year of each revision of the statewide multimodal transportation plan, the commissioner must prepare a 20-year statewide highway capital investment plan.  Current law requires the 20-year plan to be done at the same time as the statewide multimodal transportation plan. (S.F. No. 1060, Newman)

Section 34. Active transportation program. An active transportation program is established and funding is provided.

Subdivision 1.  Definitions. Definitions are provided.

Subdivision 2.  Program established. The commissioner must establish an active transportation program to support bicycling, pedestrian activities, and other forms of nonmotorized transportation. 

Subdivision 3.  Active transportation accounts. An active transportation account is established in the bond proceeds fund and consists of state bond proceeds appropriated to the commissioner. An active transportation account is also established in the special revenue fund and consists of money that is deposited in the account by law. The commissioner must transfer $16,000,000 of the National Highway Performance Program funds to the active transportation account.

Subdivision 4.  Program administration. The commissioner must establish program requirements, including assistance eligibility; a solicitation and application process; and a procedure to award financial assistance. Political subdivisions and tax-exempt organizations are eligible to receive assistance. The commissioner must publicize each application solicitation. The commissioner must also assist applicants in creating and submitting applications, with an emphasis on assisting communities that are historically and currently underrepresented in local or regional planning.

Subdivision 5.  State general obligation bond funds. The legislature finds that nonmotorized transportation infrastructure projects constitute betterment and capital improvements within the meaning of the Minnesota Constitution for purpose of general obligation bonds.

Subdivision 6.  Use of funds. Projects funded by bond proceeds are limited to bond-eligible costs. The commissioner must determine permissible uses of financial assistance.

Subdivision 7.  Project evaluation and selection. The commissioner must establish a project evaluation and selection process that is competitive, criteria-based, and objective.

Subdivision 8.  Grant cancellation. The commissioner must cancel a grant if the grantee has not proceeded with the project within five year.

Section 35.  Project selection requirements.  Directs the Commissioner of Transportation to develop and implement a transportation project evaluation and selection policy. In developing the policy, and also in making any future updates to the policy, the commissioner must consult with named entities, including the Federal Highway Administration. The department must publicize the policy. 

The adopted policy must include:  a project ranking system, a process to inform stakeholders of the results of a project selection, and the involvement of local stakeholders in the project selection process.  The policy must be adopted by October 1, 2018, and in use for project selections on or after that date. After adoption of the policy, the state transportation improvement program must include project ranking scores and projects must be executed in ranked order.  This section is effective the day following final enactment.  (S.F. No. 1524, Anderson R.)

Section 36.  Exemptions for pipeline welding trucks.  A pipeline welding truck is exempt from federal requirements relating to registration, driver qualifications, driving regulations, parts, inspection, repair, maintenance, and hours of service.  This exemption mirrors an exemption established for interstate commerce under federal law.  (S.F. No. 1060, Newman)

Section 37.  Active transportation program recommendations. By October 1, 2017, the Advisory Committee on Nonmotorized Transportation must develop and submit recommendations to the commissioner regarding the project evaluation and selection process. The Committee must consult with specified entities. In its next annual report, the Committee must include a summary of its recommendations. This report must be submitted to the legislature.

Section 38.  Conveyances for historical purposes; McKinstry Surplus lands.  The Commissioner of Transportation may convey, without payment, McKinstry Mounds and portions of the McKinstry Village site to the Minnesota Historical Society for historical purposes. (S.F. No. 1059, Newman)

Section 39.  Highway construction costs study

Subdivision 1.  Construction costs study; report.  The Commissioner of Transportation must enter into an agreement with a consultant to conduct a study on highway construction costs.  The commissioner must submit a report on the study to the legislature by February 15, 2018.

Subdivision 2.  Project cost comparison report.  The Commissioner of Transportation must report to the legislature on a comparison of estimated and actual costs of construction projects completed in the past ten years.  This section is effective the day following final enactment.  (S.F. No. 355, Osmek; S.F. No. 1524, Anderson, P.)

Section 40.  Interstate 94/494/694 Interchange safety improvement and congestion relief study.  The Commissioner of Transportation must conduct a safety improvement and congestion relief study for the interchange of Interstate Highways 94, 494, and 694. The commissioner must report the findings to the legislature within 180 days after the effective date.  This section is effective the day following final enactment.  (S.F. No. 64, Housley)

Section 41.  Legislative Route No. 123 removed.  Provides county turnback of Trunk Highway 112 (running from Le Sueur to Le Center) following an agreement between MnDOT and Le Sueur County.  (S.F. No. 1059, Newman)

Section 42.  Legislative Route No. 225 removed.  Provides a county turnback of Trunk Highway 225 (running from Ponsford to Trunk Highway 34 near Osage in Becker County) following an agreement between MnDOT and Becker County.  (S.F. No. 1059, Newman)

Section 43. Marked Trunk Highway 316 speed limit in Hastings; Moratorium and report. The commissioner is prohibited from changing the speed limit on a portion of Red Wing Boulevard in Hastings. By March 1, 2018, the commissioner must submit a report to the legislature on speed limits on this portion of road. In developing the report, the commissioner must hold at least two public hearings on proposed speed limit adjustments. The report must provide details on the process for making speed limit changes; summarize and respond to comments from the public hearings; and include copies of recent traffic and engineering studies on changing the speed limit. (S.F. No. 2036, Schoen)

Section 44.  Report to legislature on project selection policy.  Requires the Commissioner of Transportation to submit a report to the legislature by February 15, 2018, on the project selection policy under development pursuant to section 38.  This section is effective the day following final enactment.  (S.F. No. 1524, Anderson, P.)

Section 45.  Report by Commissioner of Transportation on MnPASS lanes.  Requires the Commissioner of Transportation to report to the legislature on MnPASS lanes.  The report must be submitted on or before January 2, 2018.  This section is effective the day following final enactment.  (S.F. No. 530, Newman)

Section 46.  Report by Commissioner of Transportation on tolling.  Requires the Commissioner of Transportation to report to the legislature on the use of tolling in the state.  The report must be submitted on or before January 2, 2018.  This section is effective the day following final enactment.  (S.F. No. 530, Newman)

Section 47.  Report by Commissioner of Transportation on turnbacks.  By February 15, 2018, the Commissioner of Transportation must report to the legislature on turnback projects completed in the past five years and anticipated projects for the next two years.  Annually thereafter, the commissioner must report on projects completed in the past year and anticipated projects for the next two years.  This section is effective the day following final enactment.

Section 48. Safety improvement project at the intersection of Highway 55 and Wilkin County Road 19.  Requires the commissioner to study safety improvements at the intersection of Highway 55 and Wilkin County Road 19.  The commissioner must consult with interested parties.  After the report is submitted, the commissioner must convene a working group of interested parties to consider the options identified in the report.  If the working group cannot come to a consensus on a project by January 1, 2018, the commissioner must construct a turn lane or install a stoplight at the intersection.  The project must be paid for from the district budget and must be started in the 2018 construction season.

Section 49. Repealer.  The following Minnesota Statutes, sections are repealed:  160.262, subdivision 2 (local regulation and approval for state funding for recreational vehicle standards); 160.265 (bikeway program); 160.266, subdivisions 1 (definitions for “bicycle path” and “bikeway”) and 2 (creation of the Mississippi River bikeway); and 161.115, subdivision 32 (highway route 101 definition).  (S.F. No. 827, Dibble; S.F. No. 1059, Newman)

The following Minnesota Rules are repealed: 8810.6000 (definitions for bicycle, pedestrian, and recreational vehicle use); 8810.6100 (purpose and scope of rules to be repealed in this section); 8810.6300 (criteria for desirability of bicycle and recreational vehicle lanes); 8810.6400 (maintenance criteria for bicycle and recreational vehicle lanes); 8810.6500 (placement of bicycle and recreational vehicle lanes); 8810.6600 (minimum design standards for bicycle and recreational vehicle lanes); 8810.6700 (bicycle or recreational vehicle on highway); 8810.6800 (public use of trunk highway); 8810.6900 (use of private roadways); 8810.7000 (grade railroad crossing and bicycle and recreational vehicle lanes); 8810.9910 (traffic criteria for bicycle and recreational vehicle lanes); 8810.9911 (criteria for bike lane with no barrier); 8810.9912 (criteria for bike lane with barrier); and 8810.9913 (desirable bike path design).  (S.F. No. 827, Dibble)

Article 5. Transit.

Section 1.  Public service corporation exceptions.  In addition to compensation paid for a taking in an eminent domain proceeding, the taking of property for light rail transit or bus rapid transit lines are subject to specified fees and limitations.  Under current law, the Metropolitan Council is not subject to these fees and limitations in eminent domain proceedings.  (S.F. No. 1841, Relph)

Section 2.  Replacement service; eligibility.  Allows cities and towns to apply to the Metropolitan Council for financial assistance for replacement bus service if specified criteria are met.  The application must be made between July 1, 2017, and December 31, 2017.  (S.F. No. 1465, Jensen)

Section 3.  Operating costs.  Under current law, 50 percent of light rail transit (LRT) net operating costs (after federal and fare revenues are used) must be paid from state sources. This bill limits that requirement to light rail lines that (1) are in operation at the time of the bill’s enactment, or (2) after this bill’s enactment, have a specific appropriation from state funds for the capital costs of the LRT project.  LRT lines that do not meet either of these criteria must have operating and capital maintenance costs paid from nonstate funds. This bill considers a light rail transit extension to be a separate project.  (S.F. No. 1769, Osmek)

Section 4. Metro Mobility Enhancement Task Force. This section establishes a Metro Mobility Enhancement Task Force.  The task force must examine options to enhance the Metro Mobility program. The goal of the task force is to partner with transportation network companies or taxi services to increase program service levels and efficiency. (A transportation network company is a ridesharing service like Uber or Lyft.)  The task force must evaluate the Metro Mobility program and analyze approaches to improve program services by partnering with transportation network companies or taxi services. The task force must also review proposals and models to incorporate transportation network companies and taxi services into the transit system in other service areas. The Met Council must provide data, information, meeting space, and administrative services to the task force. Members serve without compensation.  By February 15, 2018, the task force must submit a report to the legislature that summarizes its work and findings. This section is effective the day following final enactment.  (S.F. No. 1713, Kiffmeyer)

Section 5. Vibration susceptibility study on Calhoun Isles property.  Requires the Metropolitan Council, at its expense, to contract with an engineering group to conduct a vibration susceptibility study on the Calhoun Isles property.

Article 6. Department of Public Safety.

Section 1.  Trailers.  Only one filign fee may be charged for a three-year trailer registration.  Current law requires the filing fee to be multiplied by three for for a three-year trailer registration.

Section 2.  Disability plates; application.  Adds “motorized bicycle” to the types of vehicles that may bear a disability plate when other eligibility conditions are met.  (S.F. No. 291, Frentz)

Section 3.  Plate design; furnished by commissioner.  Adds a reference to a motorized bicycle to the language directing the Commissioner of Public Safety to design a disability plate that, in the case of a motorized bicycle, must be the same size as a regular motorcycle plate.  (S.F. No. 291, Frentz)

Section 4.  Plate transfer.  Adds a reference to a motorized bicycle to the language authorizing transfer of a disability plate from one vehicle to a replacement vehicle owned or primarily operated by the physically disabled person.  (S.F. No. 291, Frentz)

Section 5.  Law enforcement memorial plates. Requires the Commissioner of Transportation to issue special law enforcement memorial license plates. The applicant must make an initial contribution of $25, and a $5 minimum annual contribution thereafter, to the Minnesota Law Enforcement Memorial Association.  The commissioner must adopt a design that represents the thin blue line. This Act is effective on January 1, 2018.  (S.F. No. 531, Senjem)

Section 6.  “Start Seeing Motorcycles” plates.  Requires the Commissioner of Public Safety to issue special “Start Seeing Motorcycles” license plates, and creates a new section of statute establishing the plates. An applicant must make a $10 minimum annual contribution to the motorcycle safety fund. American Bikers for Awareness, Training, and Education of Minnesota must design the plates, subject to approval by the Commissioner of Public Safety. This section is effective January 1, 2018, for plates issued on or after that date.  (S.F. No. 23, Osmek; S.F. No. 77 Kiffmeyer)

Section 7.  Application, issuance, form, bond, and notice.  Authorizes registrars to issue duplicate certificates of title.  Technical and clarifying changes are also made.  (S.F. No. 1527, Chamberlain)

Section 8. Transfer-on-death (TOD) title to motor vehicle.

Subdivision 1.  Titled as transfer-on-death.  Allows a TOD beneficiary designation to be entered on a motor vehicle certificate of title. This designation is subject to the rights of creditors.

Subdivision 2.  Designation of beneficiary.  Specifies the information that must be included on the title certificate to accomplish registration in TOD form. The beneficiary is not required to pay for the designation or transfer, and the title does not need to be delivered to the beneficiary for the designation to be effective.  An owner who is married at the time of designation must have the spouse’s written consent to designate a beneficiary other than the spouse.

Subdivision 3.  Interest of beneficiary.  Provides that a TOD beneficiary has no interest in the motor vehicle until the death of the owner. The owner or joint owners with rights of survivorship may change the TOD designation without the beneficiary’s consent by applying for a new certificate of title.

Subdivision 4.  Vesting of ownership in beneficiary.  Provides that motor vehicle ownership vests in a TOD beneficiary upon the death of the owner or the last surviving joint owner, subject to the rights of secured parties. The TOD beneficiary may obtain a new certificate of title upon providing a certified death record of the transferor. If no TOD beneficiaries survive the transferor, the motor vehicle is included in the probate estate of the deceased owner. A TOD transfer is not a testamentary transfer.

Subdivision 5.  Rights of auditors.  Paragraph (a) states that this section does not limit the rights of secured parties or creditors of the owner against a TOD beneficiary.

Paragraph (b) clarifies that claims for medical assistance, from county social service agencies, or from the Department of Revenue against the transferor’s motor vehicle are all claims from a creditor and continue to apply against the beneficiary after the motor vehicle has been transferred.  (S.F. No. 1009, Pratt)

Section 9.  Manufactured Home Affixed to Real Property.  This section makes changes to the titling process for manufactured homes that are affixed to real property. 

Subdivision 1.  Certificates surrendered for cancellation.  When a manufactured home is affixed to real property, the owner may surrender the manufacturer’s certificate of origin or certificate of title to the Department of Driver and Vehicle Services (DVS).  The owner must also file an affidavit of affixation with the county recorder or registrar of titles.  This results in the home becoming an improvement to real property and is no longer titled as personal property. 

Subdivision 1a.  Affidavit form.  Prescribes the form and requirements of the affidavit of affixation required in subdivision 1. 

Subdivision 2.  Perfected security interest prevents surrender.  DVS is prohibited from accepting the surrender of a manufacturer’s certificate of origin or a certificate of title if there is a perfected security interest in the manufactured home. Permanent attachment to real property or recording an affidavit of affixation does not extinguish a valid security interest or tax lien unless all requirements of this section have been satisfied. 

Subdivision 3.  Notice of security interest.  When a perfected security interest exists at the time the home is affixed to real property and the owner has not satisfied the requirements of subdivision 1, the homeowner or secured party may record a notice with the county recorder stating that the home is encumbered by a perfected security interest and is not an improvement to real property.  (S.F. No. 187, Ruud)

Section 10.  Manufactured home unaffixed from realty. This section makes changes to the titling process for manufactured homes that are not affixed to real property. 

Subdivision 1.  Certificate of title requirements.  Modifies and clarifies the circumstances in which DVS must issue a certificate of title or reissue a previously surrendered certificate of title. 

Subdivision 2.  Evidence of eligibility for reissuance.  Makes clarifying changes to the evidence required by subdivision 1. 

Subdivision 3.  Affidavit form.  Prescribes the form and requirements of the affidavit of severance required in subdivision 2.  (S.F. No. 187, Ruud)

Section 11.  Manufactured homes; ownership at issue.  Establishes a system for resolving situations where the ownership of a manufactured home is at issue. 

Subdivision 1.  Requirements for certificate issuance or reissuance.  When an applicant cannot establish ownership because of the inability to locate past owners or applicable records, the applicant may submit specified documentation to DVS in order to obtain a certificate of title reissued. 

Subdivision 2.  Satisfaction of manufactured home security lien; release.  A perfected security interest may be canceled seven years from the date of perfection if the owner has paid the lien in full or the lien has been abandoned and the owner is unable to locate the lienholder to obtain a lien release. 

Subdivision 3.  Suspension or revocation of certificate. The department may revoke a previously issued certificate of title issued under this section if the title was fraudulently procured, erroneously issued, the home has been destroyed, or the home has been involuntarily transferred and the owner did not surrender the certificate of title.  (S.F. No. 187, Ruud)

Section 12.  Scope of privilege.  Adds a reference to motorized bicycle to the language that explains how a disability certificate must be properly displayed—in the case of a motorized bicycle, similarly to a motorcycle, it must be secured to the vehicle.  (S.F. No. 291, Frentz)

Section 13.  Identifying certificate.  Adds a reference to motorized bicycle to the language that governs issuance of a temporary or permanent disability certificate.  (S.F. No. 291, Frentz)

Section 14.  Two-wheeled vehicle endorsement fee. Removes the requirement that a portion of the additional fee revenue for duplicate driver’s licenses with two-wheeled vehicle endorsements be deposited in the general fund. The revenues will instead be deposited in the motorcycle safety fund.  (S.F. No. 77, Kiffmeyer)

Section 15. Estates subject to claims. Adds TOD titles or deeds to the list of assets to be considered as a part of the decedent’s estate to determine medical assistance claims by the state.  (S.F. No. 1009, Pratt)

Section 16. Sale, sells, selling, purchase, purchased, or acquired.  Excludes a vehicle transferred by TOD of title from the definition of “sales, sells, selling, purchase, purchased or acquired” in the chapter of statute regarding sales tax on motor vehicles. This allows a motor vehicle to transfer to a beneficiary without paying the sales tax.  (S.F. No. 1009, Pratt)

Section 17.  Driver’s license agent in New Brighton.  Expands the driver’s license agent authority of the city of New Brighton by allowing a full-service driver licensing office at New Brighton city hall. This expanded authority is granted notwithstanding certain provisions in state law and administrative rules governing appointment of agents, including criteria for locating agent offices and the requirement to refer appointments to a county board.  The bill states that the required appointment be made by the Commissioner of Public Safety within two weeks of receipt of appointment application.  (S.F. No. 79, Laine)

 
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