Article 1: Transportation Finance

This article makes appropriations for fiscal years 2020 and 2021 for the Minnesota Department of Transportation (MNDOT) and for the transportation-related programs of the Metropolitan Council and the Department of Public Safety (DPS). General Fund net expenditures are $97.3 million over the base for FY 2020-2021, and $1.4 million over base for FY 2022-2023.

Section 1. Transportation appropriations. Defines terms. Establishes that appropriations are from the trunk highway fund (THF), unless another is named, for the agencies and purposes specified.

Section 2. Department of Transportation. Establishes the biennial budget for MNDOT.

Subd. 1. Total Appropriation. Summarizes appropriations by fund.

Subd. 2. Multimodal Systems. Appropriates money for non-highway transportation modes including aeronautics, transit, and freight. Changes from base appropriations:

• Aeronautics: $4.7 million annual base increase from the state airports fund, and base increases from THF of $12,000 in FY 20 and $27,000 in FY 21;
• Greater MN Transit: base increases from THF of $25,000 in FY 20 and $55,000 in FY 21, and a onetime $650,000 general fund appropriation for a study to extend Northstar commuter rail service to St. Cloud; and
• Freight: $160,000 onetime general fund appropriation in FY 20 for port development to the Port Authority of Winona (a carryforward from a cancellation of unused funds for the same purpose in FY 2019), and base increases from THF of $108,000 in FY 20 and $242,000 in FY 21.

Subd. 3. State Roads. Appropriates money for the state trunk highway system, including: operations and maintenance; planning and research; program delivery; state road construction; debt service on previous trunk highway bonds; and statewide radio communications. Changes from base appropriations:

• State Road Construction: base increases from THF of $75 million each year;
• Program Delivery: base increases from THF of $8.9 million in FY 20 and $16.2 million in FY 21;
• Operations and Maintenance: base increases from THF of $43.7 million in FY 20 and $54.4 million in FY 21;
• Planning and Research: $1.1 million onetime general fund appropriation in FY 20 for highway corridor and bridge improvement studies; and
• Statewide Radio Communications: base increases from THF of $138,000 in FY 20 and $308,000 in FY 21.

Subd. 4. Local Roads. Appropriates money for county state-aid highways, municipal state-aid streets, and other local roads. Allows for increases in the state-aid appropriations if there are additional funds and certain conditions are met. Change from base appropriations represent constitutional passthrough amounts due to changes to available highway user tax distribution fund (HUTDF) money elsewhere in the bill:

• County State-Aid Highways (CSAH): increases from CSAH fund of $388,000 in FY 20 and $395,000 in FY 21; and
• Municipal State-Aid Streets (MSAS): increase from MSAS fund of $102,000 in FY 20 and $104,000 in FY 21.

Subd. 5. Agency Management. Appropriates money for agency services, buildings, and tort claim payments. Changes from base appropriations:

• Agency Services:
  • base increases from THF of $8.3 million in FY 20 and $8.8 million in FY 21; and
  • appropriations for MNDOT to continue to provide tribal training for state agencies, of $311,000 in FY 20 and $316,000 in FY 21 from the general fund (onetime) and ongoing THF appropriations of $100,000 annually; and
• Buildings: base increases from THF of $13.4 million in FY 20 and $19.0 million in FY 21.

Subd. 6. Transfers. Authorizes transfers of funds among the MNDOT appropriations from trunk highway fund and the state airports funds in some circumstances. Directs transfer of funds in the flexible highway account for county turnback projects.

Subd. 7. State road construction appropriations carryforward. Allows MNDOT to use previous year trunk highway construction appropriations in the budget biennium if used for the originally encumbered purpose.           

Subd. 8. Contingent Appropriation. Allows additional trunk highway fund money to be appropriated to MNDOT under certain circumstances, upon written approval by a legislative group.

Section 3. Metropolitan Council. Establishes the biennial general fund budget for the transportation functions of the Metropolitan Council. Changes from base appropriations:

• division of the base general fund appropriation into two base appropriations, for transit services and Metro Mobility;
• $23.2 million onetime general fund appropriation in FY 20 for Metro Mobility; and
• $200,000 onetime general fund appropriation in FY 20 for an existing MN Valley Transit Authority express bus route.

Section 4. Department of Public Safety. Establishes the biennial budget for transportation-related divisions of the Department of Public Safety, along with department administration.

Subd. 1. Total Appropriation. Summarizes appropriations by fund.

Subd. 2. Administration and Related Services. Appropriates money for administration, including communications, public safety support (including public safety officer reimbursements and survivor benefits and soft body armor reimbursements), and technology services. Change from base appropriations:

• Public Safety Support: elimination of annual base HUTDF appropriation of $1.4 million, and base increases (starting in FY 21) of $131,000 from general fund and $405,000 from THF;
• Soft Body Armor Reimbursements: annual base increase from the general fund of $45,000 starting in FY 20; and
• Technology and Support Services: annual base increases from THF of $2.5 million starting in FY 20, and onetime appropriations for DPS application server migration of $533,000 in FY 20 and $449,000 in FY 21 from the general fund, $365,000 in FY 20 and $157,000 in FY 21 from THF, and $134,000 in FY 20 and $90,000 in FY 21 from HUTDF.

Subd. 3. State Patrol. Appropriates money for the State Patrol, including patrolling highways, commercial vehicle enforcement, capitol security, and the vehicle crimes unit. Change from base appropriation:

• Vehicle Crimes Unit: base increase from HUTDF of $39,000 in FY 20 and $64,000 in FY 21.

Subd. 4. Driver and Vehicle Services. Appropriates funds for driver and vehicle services, primarily from special revenue resulting from vehicle and driver licensing fees. Changes from base appropriation:

• Vehicle Services: base increase from vehicle services operating account in the special revenue fund of $3.5 million in FY 20 and $3.7 million in FY 21, for increased staffing;
• Driver Services: base increase from the driver services operating account in the special revenue fund of $3.9 million in FY 20 and $4.2 million in FY 21, for increased staffing; and
• Driver and Vehicle Systems: onetime general fund appropriations in FY 20 of $52.7 million for development of a packaged vehicle systems replacement to the MN Licensing and Registration (MNLARS) System, and $3 million for final development of the driver licensing system.

Subd. 5. Traffic Safety. Appropriates funds for the traffic safety office.

Subd. 6. Pipeline Safety. Appropriates special revenue funds for the pipeline safety office.

Subd. 7. Bureau of Criminal Apprehension. Base appropriations for this division are in the Public Safety budget bill, but this subdivision contains a onetime appropriation of $29,000 from the general fund in FY 20 to cover costs of updating BCA software systems to allow for access to and contact of emergency contacts as listed in driver records.

Section 5. Office of the Legislative Auditor; appropriation. Makes onetime appropriations to the legislative auditor: $200,000 from the general fund in FY 20 for audits of MNDOT and DPS programs and services; and $50,000 in FY 20 and $50,000 in FY 21 from the data security account in the special revenue fund for quarterly reviews and final audit of MNLARS and the new vehicle registration and title system.

Section 6. Deputy registrar reimbursements; appropriations. Appropriates $13 million from the general fund in FY 19 to the commissioner of public safety for reimbursement grants to deputy registrars as provided in article 2, section 36.

Section 7. Soft body armor deficiency; appropriation. Appropriates $374,000 from the general fund in FY 19 to the commissioner of public safety for soft body armor reimbursements. This is a onetime appropriation.

Section 8. Active transportation program; use of federal funds. The commissioner of transportation must spend up to $5.0 million in FY 20 and 21 from the federal Transportation Alternative Program funds for the purposes of the active transportation program.

Section 9. Appropriation cancellation; port development assistance. Cancels $160,000 in unused previous general fund appropriations for MNDOT’s Port Development Assistance program. This amount is appropriated in FY 20 for the Port Authority of Winona for the same purposes as the previous appropriation. This section is effective immediately following enactment.

Section 10. Appropriations Budget. Requires MNDOT and the Department of Public Safety to produce budget narratives and proposals for the FY 2022-23 biennium that match the budget structure set in the bill. Requires additional budgeting detail to be provided by the Metropolitan Council as part of its budget submission for the FY 2022-23 biennium.

Section 11. Closing balance allocation; disaster assistance contingency account; metro mobility. If the FY 19 final closing balance in the general fund exceeds the closing balance projected at the end of the 2019 legislative session by at least $33 million, the commissioner of management and budget must transfer $20 million from the general fund to the disaster assistance contingency account and appropriate $13 million in FY 21 to the chair of the Metropolitan Council for Metro Mobility. If the balance is less than $33 million, the commissioner must allocate the balance on a prorated basis. The transfers must be completed before October 15, 2019.

Section 12. Minnesota law enforcement association retroactive contract funding. If a collective bargaining agreement between the commissioner of management and budget (MMB) and the Minnesota Law Enforcement Association for a period from July 1, 2017 to June 30, 2019, is not implemented before June 30, 2019, the commissioner of MMB may allow the commissioner of public safety to cancel specified general fund appropriations; the canceled appropriations are appropriated to the commissioner of public safety to provide funding for the retroactive salary increases included in the final collective bargaining agreement. Further, the commissioner of MMB may allow the commissioner of public safety to carry forward unexpended and unencumbered specified trunk highway fund appropriations for the same purpose.

Article 2 – Driver and Vehicle Systems

Article 2 replaces the Minnesota Licensing and Registration System (MNLARS) with a third-party vendor system, referred to as the Vehicle Title and Registration System (VTRS). Fees for driver’s licenses and license plates and filing fees are increased and a technology surcharge is implemented to pay for VTRS, the decommissioning of MNLARS, and DPS services. The Driver and Vehicle Systems Oversight Committee and the legislative auditor provide oversight of MNLARS and VTRS. A vehicle registration task force is established to study various methods of vehicle registration. A reimbursement grant program is established to provide grants to deputy registrars for losses related to MNLARS.

Section 1 imposes a $2.25 surcharge on vehicle registration renewals. The surcharge is deposited in the Driver and Vehicle Services (DVS) technology account in the special revenue fund.

Sections 2 to 9, 11 to 24, and 28 amend provisions relating to various special license plates. The fee is stricken and is replaced with a cross-reference to the statute that sets the fees for license plates (see section 10).

Section 10 sets the fees for license plates issued on and after August 1, 2019 but before July 1, 2022, and for license plates issued on and after July 1, 2022.

Sections 25 and 26 increase the fee charged for driver records and bulk vehicle records from one cent to two cents per record requested. The additional revenue from the increase is deposited in the DVS technology account.

Section 27 increases filing fees by $1 for vehicle transactions.  The deputy registrars retain the $1 for each transaction. Of the filing fees collected by the Department of Public Safety (DPS), the additional dollar is deposited in the vehicle services operating account and $1.50 continues to be deposited into the DVS technology account. Deletes language that would, at a future point, deposit the $1.50 into the vehicle services operating account.

Section 29 imposes a $2.25 surcharge on titling fees collected by the department. The surcharge is deposited into the DVS technology account. Outdated language is stricken.

Section 30 sets the fees for driver’s licenses issued on and after August 1, 2019, but before July 1, 2022, and for licenses issued on and after July 1, 2022. In addition, a surcharge of $2.25 is imposed on each driver’s license and ID card; this surcharge is deposited in the DVS technology account.

Section 31 provides that the money in the DVS technology account may be used for the development, deployment, and maintenance of the driver and vehicle services information systems. The commissioner must annually report to the legislature on the money in the account and provide an estimate of ongoing system maintenance costs.  Makes technical and clarifying changes.

Section 32 requires the IT auditor in the Office of the Legislative Auditor to monitor and report on the Vehicle Title and Registration System (“VTRS”) and submit quarterly reports on VTRS to the Driver and Vehicle Systems Oversight Committee. The auditor must also complete a final audit of VTRS once the system is fully implemented. This section is effective the day following final enactment.

Section 33 provides definitions that apply to sections 34 and 35. This section is effective the day following final enactment.

Section 34 establishes the Driver and Vehicle Systems Oversight Committee (“Oversight Committee”). The MNLARS Steering Committee that was established in 2018 is dissolved and replaced by the Oversight Committee. The membership of the Oversight Committee is the same as the MNLARS Steering Committee. The Oversight Committee must review progress reports and reports from the IT auditor, oversee the implementation of VTRS, oversee the decommissioning of MNLARS, oversee the driver’s license system, and review fees and surcharges implemented by this act.  The commissioners of public safety and MN.IT and the VTRS vendor must submit quarterly reports to the Oversight Committee. Stakeholders may also submit quarterly reports. The Oversight Committee must meet at least once each quarter. The Oversight Committee expires six months after full implementation of VTRS. The Oversight Committee must submit a final report to the Office of the Legislative Auditor. This section is effective the day following final enactment.

Section 35 requires the commissioner of public safety to conduct an expedited procurement process to enter into a contract with a vendor for a packaged software system providing vehicle title and registration services. Stakeholders must be consulted during the implementation of VTRS. After MNLARS update 1.16 in June 2019, MNLARS will be frozen and maintained at that level until VTRS is live and MNLARS is decommissioned. The roles of DPS and MN.IT are specified. The commissioner of public safety is responsible for determining if the software should be customized. The intended timeline provides that work will begin in summer 2019, VTRS will be fully implemented by the end of calendar year 2020, and MNLARS will be decommissioned by the fall of 2021. This section is effective the day following final enactment.

Section 36 establishes the reimbursement grant for deputy registrars. The amount received by a deputy registrar is determined by formula. A deputy registrar that accepts a grant must agree to release the state from liability or claims relating to MNLARS. Payment of the grants is not an admission of liability by the state.

Section 37 requires the commissioner of public safety to consider ways in which the driver’s license system and VTRS allow for additional self-service options and on-the-spot fulfillment. The commissioner must report to the legislature on the commissioner’s findings. This section is effective the day following final enactment.

Section 38 establishes a vehicle registration task force to study various methods of vehicle registration and the corresponding fee structures. The task force must report back to the legislature by January 15, 2020. This section is effective the day following final enactment.

Article 3 – Transportation Policy

Article 3 includes various policy provisions relating to the Department of Transportation (MnDOT), the Department of Public Safety (DPS), and the Metropolitan Council.

Sections 1 and 2 require the legislative auditor to audit the programs and services administered by MnDOT and DPS.

Sections 3 and 4 allows the Department of Human Services (DHS) and the Metropolitan Council to share data to coordinate Metro Mobility services with services for people who receive services from DHS and to provide for reimbursement of Metro Mobility services.  These sections are effective the day following final enactment.

Section 5 prohibits motor vehicle manufacturers and distributors from charging back or withholding payment to a vehicle dealer due to unreasonable Department of Public Safety delays in vehicle registration or transfer.

Sections 6 and 123 require MnDOT and DPS to submit a report in each odd-numbered year that includes a list of expenditures and transfers from the trunk highway fund and the HUTDF. An additional report is due in 2020.

Sections 7 and 120 authorize a turnback of a trunk highway in South St. Paul.

Section 8 modifies a legislative route that runs through parts of Grant and Otter Tail counties.

Sections 9 to 17 are road and bridge designations.

Section 18 raises the limit from $150,000 to $250,000 for maintenance or construction contracts in which MnDOT can use direct negotiation instead of being required to use the competitive bidding process.

Section 19 authorizes a dealer to determine vehicle value in registration tax calculation in some circumstances. This authority sunsets on June 30, 2022.

Section 20 modifies exceptions to penalties and required reregistration for some overweight vehicles transporting unfinished forest products, which includes having a variance calculation apply throughout the year (instead of just during winter weight increases).

Sections 21 and 27 allow for some types of decommissioned military vehicles (e.g., a Humvee) to be registered and operated as general motor vehicles for on-road use.

Section 22 requires the commissioner of public safety to annually distribute all the contributions in the Law Enforcement Memorial Association (LEMA) account to LEMA to further the association’s mission.

Section 23 allows selling vehicles across dealership locations without transferring title.

Section 24 requires DPS to designate an employee to be the designated title and registration liaison for dealers.

Section 25 directs the Department of Public Safety to set standards for electronically submitting title transfers and vehicle registrations. The effective date is delayed until full implementation of the new vehicle title and registration system.

Section 26 authorizes dealers to obtain motor vehicle data from the DPS for specified purposes.

Section 28 allows an individual to use a consular identification card as a “primary” document to show identity for vehicle titling and registration. This section is effective the day following final enactment and is effective retroactively to October 1, 2018.

Section 29 allows a secured party’s assignees to act in the same manner of a secured party in repossessions.

Section 30 allows a dealer to provide a statement of perfection to a secured party.

Sections 31 and 33 provide definitions related to vehicle platooning.

Section 32 expands the definition of “residential roadway,” which has the effect of allowing cities and towns to adopt a 25 m.p.h. speed limit on residential roadways without a traffic engineering study and MnDOT approval.

Sections 34 and 35 allow a city to establish speed limits on city streets that differ from the default limits set in statute. An engineering and traffic investigation is not required.

Section 36 strikes a reference to road maintenance and construction vehicles to conform to a law enacted in the 2019 regular session.  This section is effective the day following final enactment.

Sections 37 and 41 allow semis and other large vehicles to deviate from the driving lane when approaching and going through a roundabout. If two semis or other large vehicles drive through a roundabout at the same time, the driver of the vehicle on the right must yield to the vehicle on the left.

Section 38 allows vehicles in a platoon to follow within 500 feet of each other.

Sections 39 and 131 require a driver proceeding at a slow speed to drive as close as practicable to the right-hand edge of the roadway. On a road with more than one lane in a direction, a driver must move out of the left-most lane to allow another vehicle to pass unless it is not practicable or an exception applies. The commissioner of public safety must provide educational information to the public about this law. Section 39 is effective August 1, 2019.

Sections 40 and 48 amend traffic regulations related to school buses to: (1) requires drivers to yield to a school bus that is attempting to enter a lane of travel from a shoulder, right-turn lane, or other location used for passenger loading or unloading; and (2) allows school bus operator to re-enter traffic from a right-turn lane after loading or unloading students, instead of being required to turn.

Sections 42 to 45 modify traffic rules regarding railroad grade crossings so that on-track equipment is treated the same as trains.

Sections 46, 47, 49, 51 to 54, and 56 to 58 modify provisions on school bus lighting and visibility and authorize supplemental warning systems for school buses.

Section 50 allows the rub rails on school buses adjacent to the beltline (the area below the windows) to be either black or yellow.

Sections 55 and 59 permit transportation network company vehicles (e.g., Uber or Lyft) to display illuminated company signs. The sign may be mounted on the lower portion of a windshield.

Sections 60, 61, and 126 broaden an exception to the prohibition on motor vehicle window tinting that is available based on a prescription or medical statement, so that individuals other than the holder of the prescription can operate the vehicle. Makes technical changes by moving language from one subdivision to another.  Effective dates vary.

Section 62 modifies length limits and backhaul authority for vehicles that transport assembled motor vehicles, including allowing loads that extend four feet or less in front of the vehicle and six feet or less in the rear.

Section 63 allows a power unit to tow a combination of two trailers under specified circumstances.

Section 64 permits a vehicle operating under an overweight permit for hauling raw or unfinished forest products to operate on Interstate 35 between Carlton County and St. Louis County.

Section 65 establishes per-axle and gross vehicle weight limits for emergency vehicles operated on interstates, using limits established in federal law.

Section 66 modifies special permits for overweight vehicles so that the vehicles may operate anywhere on Trunk Highway 53. The permits may be issued for hauling paper products, finished forest products, or iron ore tailings.

Sections 67 to 69 and 139 specify agricultural products that can be hauled under a special overweight vehicle permit. Directs the revisor of statutes to renumber subdivisions.

Section 70 allows for vehicle platooning on freeways and expressways. Sets the requirements and conditions under which a vehicle platoon may operate, including requiring plan approval by MnDOT.

Sections 71, 72, and 77 allow school districts and school bus companies that have third-party testing programs to administer road tests and skills tests to drivers for other school districts or school bus companies, respectively.

Section 73 allows an individual to use a restricted license for farm work on any type of farm, regardless of how it is legally organized. The radius in which a farm work license-holder may operate is increased from 20 miles to 40 miles of the farmhouse. This restriction on driving in a city of the first class is removed.  This section is effective June 1, 2019.

Sections 74 and 76 allow a driver’s license or Minnesota identification cardholder to identify up to three emergency contacts to be on the cardholder’s record to be available to law enforcement personnel.  These sections are effective July 1, 2020, or upon completion of the necessary program changes, whichever is earlier.

Section 75 allows a person to add an identifier to the person’s driver’s license or ID card that indicates that the person has been diagnosed with an autism spectrum disorder or a mental health condition.  This section is effective July 1, 2020, or upon completion of the necessary program changes, whichever is earlier.

Section 78 requires MnDOT to maintain an inventory of transportation assets.  The initial inventory must be completed by December 15, 2021.

Section 79 amends the reporting requirements for the transportation economic development (TED) program so that a report is not required if no project received financial assistance during the preceding two years.

Section 80 adds tribal governments as eligible for public transit financial assistance administered by MnDOT.

Section 81 modifies the calculation for a statutory appropriation to MnDOT for snow and ice control.

Section 82 creates an exemption from hours of service requirements for intrastate transportation of utility construction materials within a 50-mile radius of a project site.

Sections 83 to 87 revise standards for wheelchair securement in vehicles used in transit and other non-private transportation services to transport a person who is in a wheelchair. Changes are in conformance with federal law.

Section 88 requires the commissioner of public safety to submit an annual report to the legislature on the revenue generated by the Vehicle Crimes Unit of the State Patrol.

Sections 89 to 91 and 93 to 111 amend provisions relating to airport zoning and comprehensive plans for areas near airports. Establishes the process to adopt airport zoning regulations using standards prescribed by the commissioner of transportation. Requires review of the regulations by the commissioner of transportation. Provides an alternate process for a local government to establish and adopt custom airport zoning regulations.  These sections are effective August 1, 2019.

Section 92 requires the commissioner of transportation to charge users for operating costs of using state air transportation services. Requires the commissioner to charge users for a portion of aircraft acquisition, replacement, or leasing costs. Establishes an air transportation services account and funds in the account are annually appropriated to the commissioner to pay air service operating costs. An aircraft capital account is established for aircraft acquisition, replacement, or leasing costs.

Section 112 expands Metro Mobility services to Lakeville.  This section is effective January 1, 2020.

Section 113 extends by two years the requirement that the Metropolitan Council provide financial assistance through the regional allocation of the motor vehicle sales tax to the opt-out transit providers.  This section is effective the day following final enactment.

Sections 114 and 115 authorizes the Metropolitan Council to issue up to an additional $92.3 million in certificates of indebtedness or bonds for the council’s transit capital improvement program. These bonds are available in fiscal years 2020 and 2021. Narrows a prohibition on use of the debt for light rail transit purposes to the fiscal years 2019 and 2019.  Section 115 is effective the day following final enactment.

Section 116 permits MnDOT to waive payment and performance bond requirements for direct negotiation contracts for construction or maintenance work.

Section 117 eliminates a requirement that the city of Floodwood operate and maintain a trunk highway rest area.

Sections 118 and 119 modify and extend a pilot program that allows for community destination signs in Two Harbors.

Section 121 authorizes the commissioner of transportation to convey land in Stearns County with the proceeds to be deposited in the rail bank maintenance account.  This section is effective the day following final enactment.

Section 122 requires the Office of Collaboration and Dispute Resolution (an office within the Bureau of Mediation Services) to facilitate discussions between the Metropolitan Council and the Calhoun Isles Condominium Association regarding Southwest light rail transit project impacts.

Sections 124 and 125 allow Minneapolis and Burnsville to adopt ordinances to prohibit engine braking (also called “Jake braking”) on a specified highway in each city.  These sections are effective the day following final enactment.

Section 127 requires the commissioner of public safety to apply to the Federal Motor Carrier Safety Administration for a waiver from federal law that requires a person to have a passenger endorsement for the sole purpose of driving a bus with no passengers to deliver the bus to the purchaser.  This section is effective June 1, 2019.

Section 128 states that the law prohibiting a county regional railroad authority from contributing funds to pay for operations and maintenance of commuter rail is not applicable to the Anoka County Regional Railroad Authority reserve funds that are used to pay operating and maintenance of the Northstar Commuter Rail. This section expires on January 1, 2022.

Section 129 requires signs to be erected on Interstate I-35 for Minnesota State Academy for the Deaf and Minnesota State Academy for the Blind, and prevents removal of directional signs on Trunk Highway 60.  This section is effective the day following final enactment.

Section 130 requires the city of Minneapolis to host rail safety meetings at least annually during Southwest light rail transit project construction.

Sections 132 to 138 are various turnbacks to counties.

Section 140 repeals the following provisions: the requirement that the legislative auditor conduct quarterly reviews of the Metropolitan Council transit financial activity; wheelchair securement provisions; airport zoning provisions; and the expiration of the Mississippi River Parkway Commission. These provisions have various effective dates.