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Alexis C. Stangl
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   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 1173 - Transportation and Public Safety Division Report (Second Version)
 
Author: Senator D. Scott Dibble
 
Prepared By: Krista Boyd, Senate Fiscal Analyst (651/296-7681)
 
Date: April 19, 2013



 

Article 1: Transportation and Public Safety Appropriations

Section 1 lists the summary of all appropriations by fund.  Total direct appropriations to the Department of Transportation, Metropolitan Council transit, and administration and transportation-related activities of the Department of Public Safety for the 2014-15 biennium are $5.805 billion.

Section 2 states that all appropriations in this article are from the trunk highway fund unless another fund is specified.

Section 3. Department of Transportation.

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

Subdivision 2. Multimodal systems. 

(a) Aeronautics.

(1) Appropriates $13.648 million in FY14 and FY15 for airport development and assistance.

(2) Appropriates $6.386 million in FY14 and FY 15 for aviation support and services.  $65,000 in each year is for the Civil Air Patrol.

(b) Transit. Appropriates $27.238 million in FY14 and $27.257 million in FY15 for Greater Minnesota transit.  Of these amounts, $100,000 in each year is for the expenses of the Minnesota Council on Transportation Access, and $90,000 in each year is for grants for costs of providing free public transit rides to veterans certified as disabled.

(c) Rail.  Appropriates $500,000 in FY14 and FY15 for passenger rail planning, analysis, design and engineering.

(d) Freight. Appropriates $6.153 million in FY14 and $5.153 million in FY15 for freight purposes, of which $1 million in FY14 is for MnDOT’s share of cleanup costs for contaminated state rail bank property.

(e) Safe Routes to School.  Appropriates $375,000 in FY14 and FY15 for safe routes to school grants to local jurisdictions.

Subdivision 3. State Roads.

(a) Operations and Maintenance.  Appropriates $262.395 million in each of FY14 and FY15 for operations and maintenance.

(b) Program Planning and Delivery.  Appropriates $206.72 million in each of FY14 and FY15 for state road system investment and planning.  Of these appropriations:

  • $250,000 in each year is for operations of a Joint Program Office for Economic Development and Alternative Finance;
  • $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;
  • $75,000 in each year is for a transportation research contingent account for federally-reimbursable projects; and
  • $900,000 in each year is for transportation studies grants outside the metropolitan area.

(c) State Road Construction Total.

(1) Economic Recovery Funds. Appropriates $ 1 million in FY14 and FY15 of available federal highway aid as part of the American Recovery and Reinvestment Act of 2009.

(2) Corridors of Commerce. Appropriates $47.6 million in FY14 and $110.28 million in FY15 for the newly created Corridors of Commerce construction program.  Specifies allowable amounts for costs of program delivery.

(3) State Road Construction. Appropriates $917.8 million in FY 14 and $835.06 million in FY 15 from the trunk highway fund for construction and improvement of trunk highways.  Of these amounts, $10 million in each year is for transfer to the transportation  economic development account in the trunk highway fund.  From the amounts in this paragraph transferred to the Corridor Investment Management Strategy Program, the commissioner is encouraged to allocate funds to specified projects.

(d) Highway Debt Service.  Appropriates $158.417 million in FY 14 and $189.821 million in FY 15 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.

(e) Electronic Communications.  Appropriates $5.171 million in FY14 and FY15 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 (state aid systems).

(a) County State Aids.  Appropriates $632.251 million in FY14 and $686.608 million in FY15 from the county state-aid highway fund for distribution to counties.

(b) Municipal State Aids.  Appropriates $162.035 million in FY14 and $175.839 million in FY15 from the municipal state aid street fund for distribution to cities with a population of over 5,000.

Subdivision 5.  Agency Management.

(a) Agency Services.  Appropriates $41.997 million in FY14 and FY15 for department support.

(b) Buildings. Appropriates $17.838 million in FY14 and FY15 for building needs. 

Subdivision 6.  Transfers.

(a) Allows the commissioner to transfer unencumbered fund balances among the appropriations from the trunk highway fund and the state airports fund.  Specifies that no transfers may be made from the state road construction or debt service appropriations or between funds.  Any such transfers must be reported immediately to the legislature.

(b) Requires the Commissioner of Management and Budget to transfer $3.7 million in FY14 from the flexible account in the county state-aid highway fund to the trunk highway fund, and the remainder in each year to the county turnback account in the county state-aid highway fund.

Subdivision 7.  Use of State Road Construction Appropriations.  Specifies that money appropriated for state road construction for any fiscal year before FY14 is available during FY14 and FY15 provided the money is spent on the project for which the money was originally encumbered during the fiscal year for which it was appropriated.

Subdivision 8.  Contingent Appropriation.  Allows the commissioner, with approval of the Governor and written approval by 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 highway fund balance. Does not authorize commissioner to increase federal advanced construction funding beyond specifically authorized amounts.

Section 4.  Metropolitan Council.  Appropriates $41.489 million in FY14 and $41.570 million FY15 for metropolitan transit system operations.

Section 5.  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. 

(a) Office of Communications.  Appropriates $504,000 in FY14 and FY15 for the office of communications.

(b) Public Safety Support.  Appropriates $8.439 million in FY14 and FY15 for public safety support.  Specifies that $380,000 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.  Requires the Commissioner of Public Safety to review transfers made under this paragraph and make recommendations to the Legislature for necessary changes by January 15, 2015.

(c) Technology and Support Service.  Appropriates $3.685 million in FY14 and FY15 for technical support services.

Subdivision 3. State Patrol. 

(a) Patrolling Highways.   Appropriates $72.522 million in FY14 and FY15 for patrolling highways.

(b) Commercial vehicle enforcement.  Appropriates $7.796 million in FY14 and FY15 for commercial vehicle enforcement. 

(c) Capitol Security. Appropriates $4.605 million in FY14 and FY15 from the general fund for capitol security, of which $1.5 million a year is designated for implementation of the recommendations of the advisory committee on Capitol Area Security, including the creation of an emergency manager position and for additional State Patrol troopers and security officers in the Capitol Complex.

(d) Vehicle Crimes Unit. Appropriates $693,000 from the highway user tax distribution fund in each of FY14 and FY15 for the activities of the vehicle crimes unit. 

Subdivision 4. Driver and Vehicle Services. 

(a) Vehicle Services.   Appropriates $28.259 million in FY14 and $28.357 million in FY15 for vehicle services .  Of these amounts:

  • $1,000,000 in each year is for ten additional staff positions to enhance customer service related to title issuance; and
  • $98,000 in FY15 is a onetime appropriation for the vehicle services portion of a new DVS telephone system. 

(b) Driver Services.  Appropriates $28.749 million in FY14 and $28.947 million in FY15 for driver services.  Of these amounts:

  • $150,000 in FY15 is for two additional staff positions related to facial recognition implementation;
  • $52,000 in FY15 is a onetime appropriation for the driver services portion of a new DVS telephone system; and
  • $37,000 in FY14 and $33,000 in FY15 is for one half-time staff position to assist with the Novice Driver Improvement Task Force.

Subdivision 5. Traffic Safety.  Appropriates $435,000 in FY14 and FY15 for the Office of Traffic Safety.

Subdivision 6. Pipeline Safety.  Appropriates $1.354 million in FY14 and FY15 for pipeline safety.

Subdivision 7. Emergency Management.  Appropriates $3.079 million in FY14 and $3.029 million in FY15 to the Homeland Security and Emergency Management Division.  Of these amounts:

  • $604,000 in each year is from the fire safety account in the special revenue fund for hazardous materials and chemical assessment teams; and
  • $555,000 in FY14 and $505,000 in FY15 are from the general fund to reinstate the school safety center.

Subdivision 8. Criminal Apprehension.  Appropriates $42.853 million in FY14 and $42.932 million in FY15 to the Bureau of Criminal Apprehension.  Of these amounts:

  • $1.941 million in each year is from the trunk highway fund for DWI laboratory analysis;
  • $125,000 in each year is from the general fund to replace BCA forensic laboratory equipment and $200,000 each year is from the general fund for BCA forensic laboratory staffing; and
  • $310,000 in FY14 and $389,000 in FY15 are from the general fund to maintain Livescan fingerprinting machines.

Subdivision 9. Fire Marshal.  Appropriates $9.555 million in FY14 and FY15 to the Fire Marshal from the fire safety account of the special revenue fund.  Of these amounts:

  • $7.187 million in each year is to fund the state Fire Marshal’s office and firefighter training; and
  • $2.368 million in each year is transferred to the general fund.

Subdivision 10. Alcohol and Gambling Enforcement.  Appropriates $2.485 million in FY14 and FY15 to fund the Alcohol and Gambling Enforcement Division.  Of these amounts:

  • $1.582 million each year is from the general fund;
  • $653,000 each year is from the alcohol enforcement account in the special revenue fund; and
  • $250,000 each year is from the lawful gambling regulation account in the special revenue fund.

Subdivision 11. Office of Justice Programs.  Appropriates $36.106 million in FY14 and FY15 to the Office of Justice Programs.  Of these amounts:

  • $1.5 million in each year is from the general fund for victim assistance grants, to be distributed through an open and competitive grant process;
  • $1.5 million in each year is from the general fund for youth intervention programs; and
  • $50,000 in each year is from the general fund to train community safety personnel on de-escalation techniques, and is a onetime appropriation.

Subdivision 12. Emergency Communication Networks.  Appropriates $59.738 million in FY14 and $64.639 million in FY15 from the state government special revenue fund for the state emergency Communications Networks (911 and 800-MHz systems).  Of these amounts:

  • $13.664 million in each year for enhanced 911 services;
  • $683,000 in each year is for grants for Metro Medical Resource Communication Centers;
  • $23.621 million in each year is for debt service on state 911 revenue bonds;
  • $9.25 million in the first year and $9.65 million the second year are appropriated to the Commissioner of Transportation for maintenance and operation costs of the backbone of the Allied Radio Matrix for Emergency Response (ARMER);
  • $1 million each year is for ARMER improvements; and
  • $600,000 the first year and $1 million the second year is transferred to the Commissioner of Transportation for the maintenance of the state 800 MHz public safety radio system towers.

Section 6.   Tort Claims.  Appropriates $600,000 each year from the trunk highway fund to the Commissioner of Management and Budget for tort claims.

Section 7.   Appropriation; eWorkPlace Telework Program.  Appropriates $100,000 in FY 2014 from the highway user tax distribution fund to MnDOT for phase 2 of the eWorkPlace telework program.

Section 8.  Reauthorization; 2008, Bond Sale Expenses for Trunk Highway Bonds.  Reauthorizes $1.415 million of trunk highway fund bond expenses originally appropriated in Laws 2008, chapter 152, that are otherwise scheduled to lapse by law in FY 2013.  Under this section, the appropriation is now available until December 31, 2019.

Article 2:  Transportation Finance

Section 1 (S.F. No. 583, Sen. Pederson, and S.F. No. 664, Sen. Carlson) broadens the wheelage tax authorization, making it statewide and modifying the amount that can be imposed.

Subdivision 1 broadens the county wheelage tax to apply to all counties in the state, not only metropolitan counties.  The annual wheelage tax rate is increased from $5 to $10 per motor vehicle during calendar years 2014 to 2016.  Beginning in 2017, a county may impose a wheelage tax in an amount up to $20 per year.  The section removes the exemption from the wheelage tax for electric-assisted bicycles.

Subdivision 2 deletes the requirement that the proceeds of the wheelage tax must be paid to the Commissioner of Management and Budget for deposit to the credit of the county’s wheelage tax fund.

Subdivision 2a makes conforming changes.

Subdivision 3 directs the registrar of motor vehicles to issue a monthly warrant in favor of each county that levies the wheelage tax.  Current law directs the Commissioner of Management and Budget to issue a warrant each year for this purpose.

Subdivision 4 makes technical and conforming changes.

Subdivision 6 strikes the definition of “metropolitan county.”

Subdivision 7 makes technical changes.

Section 2 (S.F. No. 381, Sen. Champion) increases the filing fee from $5 to $8 that a driver's license agent may charge and retain for each driver's license application.

Section 3 (Committee) imposes a motor fuels gross receipts tax.

Subdivision 1 defines terms.

Subdivision 2 imposes the tax at the rate of 5.5 percent on the wholesale business of selling the means or substance used for propelling vehicles on the highways of this state (the same fuels that are subject to the current gasoline/special fuels taxes).

Subdivision 3 allows a credit or refund to the distributor of tax attributable to gross receipts from sales of gasoline or special fuel that is:  for export; purchased by the federal government; for residential heating; destroyed by accident in the distributor’s possession; taxed in error; or sold for storage in an on-farm bulk storage tank.

Subdivision 4 requires a distributor to file returns and make tax payments on a quarterly basis.  The tax is in addition to any other state tax on the distributor.

Subdivision 5 provides for audit, assessment, refund, penalty, appeal, and other administrative matters.

Subdivision 6 credits the gross receipts tax proceeds to the highway user tax distribution fund

This section is effective October 1, 2013, and applies to gross receipts on and after that day.

Section 4 (Committee) reduces the rate of the tax on gasoline by six cents per gallon, with corresponding reductions on E85 and M85.  This section is effective Oct. 1, 2013 and applies to gasoline, undyed diesel fuel, and special fuel in distributor storage on and after that date.

Section 5 (Committee) reduces proportionally the rate of tax on special fuels, effective Oct. 1, 2013 for gasoline, undyed diesel fuel, and special fuel in distributor storage on and after that date.

Section 6 (Committee) provides that gasoline and special fuel excise taxes and the gross receipts tax are in lieu of all other taxes imposed on the business of selling gasoline or special fuel.

Section 7 (S.F. No. 927, Sen. Champion) changes the distribution of motor vehicle lease sales tax revenues.  After the current $32 million transfer to the general fund, $9 million of the remaining revenues is for the county state-aid highway fund for use in the metropolitan counties excluding Hennepin and Ramsey, and any remaining revenues are for greater MN transit.  Current law specifies the remainder after the $32 million general fund transfer is split equally between the county state-aid highway fund and for use in the metropolitan counties excluding Hennepin and Ramsey and greater MN transit. This section is effective January 1, 2014.

Section 8 (Committee, S.F. No. 694, Sen. Dibble) amends current law governing imposition, administration, and use of the metropolitan area sales tax for transit.

Subdivision 1 provides definitions, eliminating the concept of “eligible county” (the new tax will be imposed in all seven metropolitan counties), changing the definition of minimum guarantee county (a county that collects less than four percent rather than the current three percent of all sales tax revenues), and defining “net transit sales tax proceeds” as gross tax revenues less collection costs.

Subdivision 2 is unchanged from current law.  It provides that a county participating in a joint powers agreement shall impose a one-quarter cent sales tax, and an excise tax of $20 on motor vehicle retail sales.

Subdivision 2a is new language, imposing a local sales tax on all metropolitan counties at a rate of three-quarters of one percent minus the tax rate imposed under subdivision 2, having the effect of a uniform, total metropolitan area sales tax of three-quarters percent.  The subdivision also imposes a $20 tax per retail motor vehicle sale in counties where this tax is not already imposed under subdivision 2.  These taxes do not count toward the Minneapolis limit on total tax on lodging.

Subdivision 3 requires all counties in the metropolitan area to enter into an amended joint powers agreement that conforms to this section of law.

Subdivision 4 reduces the maximum amount of net sales tax the counties may use for joint powers administrative expenses from three-quarters of a percent to one-half of a percent.  The subdivision also provides that the chair of the joint powers board must be a county commissioner who is elected by the board.

Subdivision 5 specifies that grants must be paid out of proceeds of the sales tax along with bond proceeds.

Subdivision 5a deals with the GEARS committee, adding responsibilities to award grants:

  • to local units of government for bicycle, trail, and pedestrian infrastructure and safe routes to school infrastructure; and
  • to cities for planning of land use and transportation links, streetcar development, and bicycle/pedestrian connections. These grants must be consistent with a metropolitan council or municipal non-motorized transportation plan.

Grants under this subdivision are not subject to board approval, and must equal no less than 3.75 of the net sales tax proceeds. Current law sets the maximum total grants for these purposes at 1.25 of total awards.

Subdivision 5b strikes obsolete, duplicative, and non-conforming language.

Subdivision 6 specifies that board grants must be made only for transit way development and operations, including Bottineau Boulevard, and to fund grants made by GEARS (planning and infrastructure for bicycles, trails, and pedestrians, and land use/transportation links, streetcar developments, and bicycle/pedestrian connections).  This subdivision requires grants to Scott and Carver Counties and to the council for Southwest light rail transit, Bottineau Boulevard transit way and an annual grant of $500,000 to Center for Transportation Studies for transit research.

Subdivision 7 specifies the board’s bonding authority and is unchanged from current law.

Subdivision 8 directs the Commissioner of Revenue to remit tax proceeds as provided in the allocation statute.

Subdivision 10 corrects a cross-reference.

Subdivision 11 adds bonds issued and board actions to the required report to the legislature.

This section is effective July 1, 2013, except that the imposition of the tax must be the first day of the calendar quarter that begins at least 60 days after the date of final enactment.  The section applies in the seven metropolitan counties.

Section 9 (Committee) specifies allocation of revenues generated by the metropolitan area transit sales tax.

Subdivision 1 defines terms by cross-reference to the previous section.

Subdivision 2 specifies allocation of the net transit sales tax proceeds as follows:

  • payment of debt service;
  • specified funding to the Metropolitan Council for transit operations, of $23,400,000 in 2014 and $12,375,000 in 2015;
  • 100 percent of the operating subsidies for named transit lines to the council;
  • an amount to fund the GEARS grants to the board;
  • $11 million in 2014 and $21.4 million in 2015 for Southwest light rail transit;
  • an amount to the board equal to a quarter cent sales tax and $20 excise tax per motor vehicle transaction less specified amounts;
  • $500,000 annually to Center for Transportation Studies for transit research; and
  • remaining revenues subject to joint certification.

Subdivision 3 specifies the joint certification process.

  • The commissioner of revenue, by July 1, 2013, and by March 15 thereafter, must estimate annual sales tax revenues.
  •  If, by October 1, the board and council have not reached agreement on the joint certification allocation, they must submit the issues for dispute resolution to a three-member panel appointed by the board and council.  The panel must issue advisory recommendations.
  • By December 1, the board and council must produce a joint certification after adoption by the board and council, or the joint certification fund can be spent only by legislative appropriation. 
  • By December 15, the joint certification, or a notice that there is no joint certification, must be forwarded to the legislature. 

Subdivision 4 specifies allowable uses and priorities for money remitted to the council as follows:

  • bus and rail transit operations and maintenance, including suburban transit; and
  • transit expansion, including bus service, streetcars, suburban transit, arterial bus rapid transit, and affordable transit fares.

Subdivision 5 cross-references section 8 as specifying allowable uses for money remitted to the board.

Subdivision 6 direct the Commissioner of Revenue to remit sales tax proceeds on a monthly basis to a fiscal agent who will divide the money among the accounts for the council, the board, and for joint certification.

Subdivision 7 provides for funding during a transition period of July 1, 2013, through December 31, 2013:

  • $11.7 million to the council for transit operations.
  • $2.5 million to the council for the state share of the Southwest light rail transit line. 

The board will be reimbursed for these amounts from sales tax proceeds in 2014

This section is effective July 1, 2013, and applies to the seven metropolitan counties.

Section 10 (S.F. No. 583, Sen. Pederson) amends the Greater Minnesota local sales tax for transportation by removing the requirement of approval by voter referendum, and substitutes approval by resolution of the county board, following a public hearing.  This section is effective the day following final enactment.

Section 11 (S.F. No. 583, Sen. Pederson) amends the allowable uses of Greater Minnesota local sales tax for transportation proceeds to allow payment of operating costs of transit and capital costs of a safe route to school program.  Taxes must terminate when revenues raised are sufficient to finance the project, rather than after completion of the project, and tax collections may continue when proceeds are, in whole or in part, dedicated to paying operating costs.  This section is effective the day following final enactment.

Section 12 (Committee) changes a cross-reference to conform with new numbering in section 13.  This section is effective July 1, 2013, and applies to transfers of title on or after that date.

Section 13 (Committee) subjects a gift transfer of a motor vehicle between individuals to motor vehicle sales tax, by removing the existing exemption.  A more limited exemption of a gift transfer of a motor vehicle between spouses or between parent and child is included.  This section is effective July 1, 2013, and applies to transfers on and after that date.

Section 14 (Committee) increases the rate of motor vehicle sales tax from 6.5 to 6.875 percent of the purchase price of a motor vehicle.

Section 15 (Committee) increases the in lieu tax (imposed instead of the motor vehicle sales tax) from $90 to $150 on a purchase price of a collector passenger automobile or fire truck.  This section is effective July 1, 2013, and applies to title transfers on and after that date.

Section 16 (Committee) changes the distribution of motor vehicle sales tax proceeds effective July 1, 2013.  The 60 percent for highways and 40 percent for transit split is maintained, but the split of the 40 percent for transit is shifted to 35 percent for metropolitan transit (current level is 36 percent) and five percent for greater Minnesota transit (current level is four percent).

Section 17 (Committee) reduces the cap from ten percent to five percent of capital costs of a rail transit project that may be paid by a county regional railroad authority.  This section is effective the day following final enactment.

Section 18 (S.F. No. 607, Sen. Carlson) allows cities to create street maintenance districts and impose  fees to pay for street maintenance in the district.

Subdivision 1 provides definitions for the section, including “maintenance” which is striping, seal coating, mill and overlay, reclamation, crack sealing, pavement repair, sidewalk maintenance, signal maintenance, street light maintenance, and signage.

Subdivision 2 authorizes a city to establish a street maintenance district by ordinance to defray costs of municipal street maintenance by charging fees to all property located in the district.  The city may not include property already in another street maintenance district. 

Subdivision 3 requires that the total costs of street maintenance must be uniformly apportioned to all property in the district based on the classification of the property.

Subdivision 4 requires a city to adopt a plan, after notice and hearing, and to estimate maintenance costs before adopting a street maintenance district. Fees may be collected for a period of five to 20 years.  

Subdivision 5 requires that fee revenues must be placed in a separate account and used only for projects located in the district and identified in the street maintenance plan.

Subdivision 6 requires that the ordinance must provide for billing and payment of the fee on a specified basis. Unpaid fees may be certified to the county auditor for collection as a special assessment.

Subdivision 7 requires a municipality to impose a street maintenance fee by ordinance. The ordinance must not be voted on or adopted until after public notice and a hearing.

Subdivision 8 provides that imposing a street maintenance fee does not restrict a city from using other methods to pay costs of street maintenance, except that a city must not impose special assessments for projects funded with street improvement fees.

Subdivision 9 prohibits a city from imposing a street maintenance fee on an undeveloped parcel until the later of three years after (1) substantial completion of paving the street; or (2) first occupation of a previously unoccupied structure.

Subdivision 10 prohibit a municipality from imposing a street maintenance fee on a parcel owned by an institution of public charity.

This section is effective on July 1, 2013 and expires on June 30, 2018, except as to municipal street maintenance fees that were imposed before the expiration date.

Section 19 (S.F. No. 922, Sen. Kent) authorizes, after July 1, 2013, in addition to existing authority, $35,800,000 in regional bonding authority for the Metropolitan Council transit capital improvement program.  This section is effective the day following final enactment and applies in the seven metropolitan counties.

Section 20 (S.F. No. 694, Sen. Dibble) authorizes the Metropolitan Council to issue revenue bonds to implement its transit capital improvement program and to refund bonds issued under this section.  This section is effective the day after final enactment and applies in the seven metropolitan counties.

Section 21 (S.F. No. 694, Sen. Dibble) extends the sunset from June 30, 2013, to June 30, 2016, for the statutory appropriation of federal economic recovery funds.

Article 3: Transportation and Public Safety Policy

Section 1 (Committee) creates the corridors of commerce program.

Subdivision 1 defines terms.

Subdivision 2 directs the Commissioner of Transportation to establish a Corridors of Commerce program for trunk highway improvements and maintenance to improve commerce in the state.  The commissioner may spend funds for the program from appropriations made for this section, in various budget activities in state roads programs at the commissioner’s discretion, and made for the corridor investment management strategy program.

Subdivision 3 creates and describes eligibility categories for corridors of commerce, including capacity development and freight improvement.

Subdivision 4 directs the commissioner to establish eligibility requirements to include consistency with the statewide multimodal transportation plan, location of the project on an interregional corridor, placement in at least one eligibility category, and length of time until construction work can begin.  A project that is in the state transportation improvement program may not be funded in this program.

Subdivision 5 directs the commissioner to identify a process for identification, evaluation, and selection of projects.  ATPs and other interested stakeholders in each Department of Transportation district may recommend projects.  Project evaluation must be based on stated criteria. The commissioner is encouraged to prioritize described projects in selecting projects in Districts 1, 6, and 7.

Subdivision 6 allows the commissioner to include costs of operation and maintenance for a project in allocating funds.

Subdivision 7 requires the commissioner to submit an annual report on the corridors of commerce program to the chairs and ranking minority members of the legislative transportation committees.  Beginning in 2016, the commissioner must report on the results of an independent evaluation of impacts and effectiveness of the program.  The evaluation can be performed by a consultant or an agency employee with experience in program evaluation, but has no involvement in program implementation.

This section is effective the day following final enactment.

Section 2 (S.F. No. 694, Sen. Dibble) removes the prohibition on paying tort claims with trunk highway funds and adds “payments to MN.IT Services in excess of actual costs incurred for trunk highway purposes” as an unauthorized use of trunk highway funds.

Section 3 (Committee) increases from $1.2 million to $2 million the cap that the Commissioner of Transportation may spend for research performed by the Center for Transportation Studies.  The Center, by June 30, 2018, must conduct research on transportation policy and economic competitiveness.

Section 4 (Committee) amends the statute that divides the county state-aid highway (CSAH) fund between the excess sum and the apportionment sum.  The section changes the calculation of the excess sum in two ways:

  • It changes the CSAH portion of gas tax that goes into the excess sum.  Current law specifies the CSAH portion of the amount in excess of 20 cents per gallon becomes part of the excess sum.  The section specifies the CSAH portion of the amount in excess of 15.2 cents per gallon becomes part of the excess sum.
  • It adds to the excess sum the amount attributed to 50 percent of the county state-aid highway fund share of proceeds of the gross receipts tax in Article 2.

Section 5 (S.F. No. 871, Sen. Reinert) changes from $5,000 to $9,000 the minimum pre-damage value to warrant classification of a motor vehicle as a "high-value vehicle."  Current law requires an insurance company that acquires a high-value vehicle through payment of damages, or a person who acquires a similar vehicle from out of state under specified circumstances, to apply to the Department of Public Safety for a salvage certificate of title.

Section 6 (S.F. No. 300, Sen. Tomassoni) makes the following changes to title issuance fees, beginning in January 2017:

  • Increases the fee for issuance of an original certificate of title by $2.00 (from $6.25 to $8.25);
  • Increases the amount of this fee that is paid into the vehicle services operating fund from $3.25 to $4.15; and 
  • Eliminates the fee and surcharge for transferring title and issuing a new certificate of title.

Section 7 (S.F. No. 1213, Sen. Skoe) amends the statute concerning annual permits for overweight vehicles.

Subdivision 1 allows a road authority to issue an annual permit for a vehicle or combination of vehicles with six or more axles to haul freight (current law limits allowable cargo to "raw or unprocessed agricultural products") and operate with a gross vehicle weight of up to 90,000 pounds, or 99,000 pounds during periods of seasonal increase allowance.  The subdivision adds a requirement that a vehicle transporting only sealed intermodal containers may be operated on an interstate highway if it is part of an international movement.

Subdivision 2 allows a road authority to issue an annual permit for a vehicle or combination of vehicles with seven or more axles to haul freight (current law limits allowable cargo to "raw or unprocessed agricultural products") and operate with a gross vehicle weight of up to 97,000 pounds, or 99,000 pounds during periods of seasonal increase allowance.  The subdivision adds a requirement that a driver of a vehicle under this subdivision must meet federal driver qualification regulations.

Section 8 (S.F. No. 985, Sen. Tomassoni) amends the license plate impoundment crime in the driving while impaired (DWI) law to allow a person subject to a plate impoundment order to drive a motor vehicle that is employer-owned and not equipped with specially coded plates or an ignition interlock device under the 2007 pilot project, or the current permanent ignition interlock program.

Section 9 (S.F. No. 985, Sen. Tomassoni) amends the DWI law’s implied consent provision to provide that when a peace officer has probable cause to believe a person has committed a DWI-related criminal vehicular operation (CVO) violation, the officer is not required to give the implied consent advisory if the officer is not pursuing an implied consent revocation.  This section is effective July 1, 2014.

Section 10 (S.F. No. 985, Sen. Tomassoni) provides that a person whose driver’s license has been revoked or suspended for a DWI-related CVO offense is not eligible for reinstatement of driving privileges, until the person has submitted to the commissioner of public safety verification of the use of an ignition interlock device that meets statutory performance standards for the applicable time period specified in the bill.  This section is effective July 1, 2014.

Section 11 (S.F. No. 368, Sen. Dahle) authorizes the Commissioner of Public Safety to issue an instruction permit to an applicant who is enrolled in concurrent classroom and behind-the-wheel training and has completed 15 hours of classroom training.  (Completion of the classroom phase of training requires 30 hours.)  The Commissioner of Public Safety is directed to adopt rules to carry out this section.  Rulemaking is subject to Minnesota Statutes, section 14.386 (the exempt process), but they do not expire in two years.  The rulemaking provision is effective on final enactment, and the remainder of the section is effective June 1, 2014.

Section 12 (S.F. No. 368, Sen. Dahle) creates the Novice Driver Education Improvement Task Force with 21 members, including the Commissioner of Public Safety and members designated by specified organizations.  Members serve without compensation.  Members must be appointed or designated by August 1, 2013.  The first meeting must be convened by September 1, 2013.  The duties of the task force are to examine and compare Minnesota law and rules concerning driver education with the Novice Teen Driver Education and Training Administrative Standards, identify discrepancies, and determine to what extent state law should be modified to conform with federal standards.  The Commissioner of Public Safety is required to provide support staff and administrative services for the task force.  The task force must submit a report to the legislative Transportation Committees no later than August 31, 2015, containing any recommendations and proposed legislation.  This section is effective the day following final enactment and repealed on September 1, 2015, or the day after the task force submits its report, whichever occurs first.

Section 13 (S.F. No. 985, Sen. Tomassoni) specifies the driver’s license revocation periods for DWI-related CVO convictions. The revocation periods range from two years to ten years depending on the specific circumstances of the offense.  This section is effective July 1, 2014.

Section 14 (S.F. No. 985, Sen. Tomassoni) requires the commissioner of public safety to suspend the driver’s licenses of a person (1) for whom a peace officer has certified that probable cause exists to believe the person committed a DWI-related CVO offense, or (2) formally charged with a first or second-degree manslaughter or CVO offense regardless of whether it was DWI-related, resulting from the operation of a motor vehicle.  A suspension continues until the underlying criminal charge has been resolved or terminated by the commissioner. A person whose license is suspended and is later convicted of the underlying offense, receives credit for the suspension period towards the revocation period. The section provides for administrative review of a suspension.  This section is effective July 1, 2014.

Section 15 (S.F. No. 985, Sen. Tomassoni) amends the limited driver’s license law to provide a cross-reference to new suspension language.  This section is effective July 1, 2014.

Section 16 (S.F. No. 985, Sen. Tomassoni) amends the limited driver’s license law to provide that the one-year waiting period for a limited license for CVO offenses applies only to non DWI-related CVO offenses.  This section is effective July 1, 2014.

Section 17 (S.F. No. 985, Sen. Tomassoni) amends the limited driver’s license law to prohibit a limited license from being issued to a person whose driver’s license was suspended or revoked for a DWI-related CVO offense.  This section is effective July 1, 2014.

Sections 18 and 19 (S.F. No. 985, Sen. Tomassoni) amend the ignition interlock law to include a person whose driver’s license was suspended or revoked for a DWI-related CVO.  These sections are effective July 1, 2014.

Section 20 (S.F. No. 694, Sen. Dibble) creates the transportation economic development program.

Subdivision 1 directs the Commissioners of Transportation and Employment/Economic Development to provide competitive grants, with geographic balance, to projects in all modes of transportation that provide economic benefit.

Subdivision 2 creates two transportation economic development accounts, one in the special revenue fund (for non-trunk highway funds) and one in the trunk highway fund. 

Subdivision 3 directs the commissioners to publicize each solicitation among all eligible recipients and assist applicants in creating and submitting applications.

Subdivision 4 directs the commissioners to analyze project applicants according to economic impact performance measures.

Subdivision 5 states criteria for evaluating projects for awards of financial assistance.

Subdivision 6 provides that, in evaluating projects, the Commissioner of Transportation will certify eligibility, and the commissioner of employment and Economic assistance will evaluate the projects and certify those that will receive financial assistance.

Subdivision 7 limit financial assistance to a project to a maximum of 70 percent of project costs.  The commissioners must ensure geographic balance, both in the number of projects funded and the total amount of financial assistance provided.

Subdivision 8 requires the commissioners, by February 1 of every odd-numbered year, to report to the legislative transportation and economic development committees on the program.

Section 21 (Amendment, Sen. Pederson) directs the commissioner of transportation, for major trunk highway projects, to select pavement material that has a design life of at least 20 years.

Section 22 (S.F. No. 687, Sen. Franzen) authorizes the Commissioner of Transportation to spend specifically appropriated funds for stated non-infrastructure activities related to safe routes to school.  The commissioner may not use bond proceeds for these purposes.

Section 23 (S.F. No. 694, Sen. Dibble) allows the Commissioner of Transportation to cancel remaining money in the grade crossing safety account to the trunk highway fund at the end of a biennium, rather than requiring this cancellation at the end of each fiscal year.

Section 24 (S.F. No. 682, Sen. Franzen) increases from one percent to five percent of the grants-in-aid appropriations to the youth intervention program that may be used by the Minnesota Youth Intervention Programs Association for added purposes of program development and professional development, as well as tracking, analyzing, and reporting outcome data for community-based grantees.  The Association is not required to meet a match obligation.

Section 25 (S.F. No. 344, Sen. Benson) establishes the position of emergency manager in the Capitol Complex Security Division permanent staff.  The emergency manager must:

  • oversee plans and procedures regarding security operations;
  • develop and implement tenant training to address threats and emergency procedures; and
  • develop and implement threat and emergency exercises. 

The director must assign at least one state trooper to the Capitol complex at all times and must hold at least one annual meeting to discuss Capitol complex security, emergency planning, public safety, and public access to the Capitol complex.   The meeting must include Capitol complex tenants, state employees, lobbyists, vendors, media, and advocacy groups.

Section 26 (S.F. No. 344, Sen. Benson) assigns the Commissioner of Public Safety final authority over public safety and security in the Capitol complex.  The Commissioner of Administration is responsible for the Capitol complex as provided under Minnesota Statutes, chapter 16B, which assigns general management responsibilities

Section 27 (Amendment, Sen. Rest) removes references to contracted Capitol Security services, and directs the Commissioner of Public Safety to execute interagency agreements with agency tenants in the Capitol complex and to charge fees for providing security services.  Fees continue to be deposited into an account in the special revenue fund for annual appropriation to the commissioner.

Section 28 (S.F. No. 948, Sen. Kent) authorizes metropolitan area county regional rail authorities to utilize statutory powers to develop and pay the costs of building and operating bus rapid transit systems on transit ways that are part of the Metropolitan Council’s 2030 Transportation Policy Plan. The section is effective the day following final enactment and applies to the seven metropolitan counties.

Section 29 (S.F. No. 1173, Sen. Dibble) defines “project” in the statute that limits regional railroad authorities’ contribution to the capital cost of a light rail transit or commuter rail project.  “Project” means initial construction of a minimum operable segment of a new line, but does not include enhancements and extensions constructed after the transit line is operational.  This section is effective the day following final enactment.

Section 30 (S.F. No. 985, Sen. Tomassoni) requires a peace officer to notify the commissioner of public safety if the officer makes a determination that probable cause exists to believe that a person has violated the DWI-related CVO law (this notification triggers a driver’s license suspension).  This section is effective July 1, 2014.

Section 31 (SF 985, Sen. Tomassoni) authorizes a person participating in the 2007 ignition interlock device pilot project to drive an employer-owned vehicle not equipped with an interlock device while in the normal course and scope of employment duties with the employer’s written consent. A cross-reference is made to the current ignition interlock device law to ensure that the same standards would apply under this section as would apply to offenders participating in the current program.

Section 32 (S.F. No. 927, Sen. Champion) allows the Metropolitan Council, when it is the lead transportation authority in a transit way project, to contract with local community-based organizations to promote community engagement activities along the corridor.  The council must report activities under this section to the legislative Transportation Committees.

Section 33 (S.F. No. 927, Sen. Champion) encourages a lead transportation authority, in transit and transportation infrastructure projects, to make every effort to employ women, minority community members; to contract with women-owned and minority-owned targeted group businesses; and to contract with a community-based employment assistance firm to recruit, hire, and retain women and minorities for the project construction workforce.  The Commissioner of Transportation shall make all reasonable efforts to increase participation in highway projects of small businesses located in economically disadvantaged areas of the state.

Section 34 (S.F. No. 694, Sen. Dibble) states that the Greater Minnesota Transit component of the costs of Northstar Commuter Rail is exempt from the section of statute that limits financial assistance under the Department of Transportation’s public transit participation program to eligible recipients outside of the metropolitan area.

Section 35 (Committee and S.F. No. 985, Sen. Tomassoni) repeals:

  • the language that creates the trunk highway economic development account;
  • the June 30, 2014, expiration date of the Minnesota Council on Transportation Access; and
  • Department of Public Safety rules relating to suspension and revocation of drivers' licenses for CVO offenses, effective July 1, 2014.
  •   

Article 4:  Severability

Section 1 (Committee) provides that if the section imposing a gross receipts tax on fuel distributors is found to be invalid, the sections that lower the gasoline and related fuel taxes and the section that adjusts the county state-aid highway fund excess fund language are without effect.

 BB/KB:rer

 

 

 

 
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