1.1Senator .................... moves to amend S.F. No. 2321 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 13.72, is amended by adding a subdivision
1.4to read:
1.5    Subd. 17. Construction manager/general contractor data. When the Department
1.6of Transportation undertakes a construction manager/general contractor contract, as
1.7defined and authorized in sections 161.3207 to 161.3209, the provisions of this subdivision
1.8apply.
1.9(a) When the commissioner of transportation solicits a request for qualifications:
1.10(1) the following data are classified as protected nonpublic:
1.11(i) the statement of qualifications scoring evaluation manual; and
1.12(ii) the statement of qualifications evaluations;
1.13(2) the following data are classified as nonpublic: the statement of qualifications
1.14submitted by a potential construction manager/general contractor; and
1.15(3) the following data are classified as private data: identifying information
1.16concerning the members of the technical review committee.
1.17(b) When the commissioner of transportation announces the short list of qualified
1.18construction managers/general contractors, the following data become public:
1.19(1) the statement of qualifications scoring evaluation manual; and
1.20(2) the statement of qualifications evaluations.
1.21(c) When the commissioner of transportation solicits a request for proposals:
1.22(1) the following data are classified as protected nonpublic: the proposal scoring
1.23manual; and
1.24(2) the following data are classified as nonpublic data:
1.25(i) the proposals submitted by a potential construction manager/general contractor;
1.26and
1.27(ii) the proposal evaluations.
1.28(d) When the commissioner of transportation has completed the ranking of proposals
1.29and announces the selected construction manager/general contractor, the proposal
1.30evaluation score or rank and proposal evaluations become public.
1.31(e) When the commissioner of transportation conducts contract negotiations
1.32with a construction manager/general contractor, government data created, collected,
1.33stored, and maintained during those negotiations are nonpublic data until a construction
1.34manager/general contractor contract is fully executed.
1.35(f) When the construction manager/general contractor contract is fully executed or
1.36when the commissioner of transportation decides to use another contract procurement
2.1process other than construction manager/general contractor authority authorized under
2.2section 161.3209, subdivision 3, paragraph (b), all remaining data not already made public
2.3under this subdivision become public.
2.4(g) If the commissioner of transportation rejects all responses to a request for
2.5proposals before a construction manager/general contractor contract is fully executed,
2.6all data other than that data made public under this subdivision retains its classification
2.7until a resolicitation of the request for proposals results in a fully executed construction
2.8manager/general contractor contract, or a determination is made to abandon the project. If
2.9a resolicitation of proposals does not occur within one year of the announcement of the
2.10request for proposals, the remaining data become public.
2.11EFFECTIVE DATE.This section is effective the day following final enactment
2.12and expires one year following the acceptance of ten construction manager/general
2.13contractor contracts.

2.14    Sec. 2. Minnesota Statutes 2010, section 116.06, subdivision 22, is amended to read:
2.15    Subd. 22. Solid waste. "Solid waste" means garbage, refuse, sludge from a water
2.16supply treatment plant or air contaminant treatment facility, and other discarded waste
2.17materials and sludges, in solid, semisolid, liquid, or contained gaseous form, resulting
2.18from industrial, commercial, mining, and agricultural operations, and from community
2.19activities, but does not include hazardous waste; animal waste used as fertilizer; earthen
2.20fill, boulders, rock; concrete diamond grinding and saw slurry associated with the
2.21construction, improvement, or repair of a road; sewage sludge; solid or dissolved material
2.22in domestic sewage or other common pollutants in water resources, such as silt, dissolved
2.23or suspended solids in industrial wastewater effluents or discharges which are point
2.24sources subject to permits under section 402 of the Federal Water Pollution Control Act,
2.25as amended, dissolved materials in irrigation return flows; or source, special nuclear, or
2.26by-product material as defined by the Atomic Energy Act of 1954, as amended.

2.27    Sec. 3. Minnesota Statutes 2010, section 161.14, is amended by adding a subdivision
2.28to read:
2.29    Subd. 70. Black and Yellow Trail. Legislative Route No. 7, signed as Trunk
2.30Highway 14 as of the effective date of this section, from the border with South Dakota
2.31to the border with Wisconsin, is designated as the "Black and Yellow Trail." The
2.32commissioner shall adopt a suitable design to mark this highway and erect appropriate
2.33signs, subject to section 161.139.

3.1    Sec. 4. [161.318] CONTINGENT APPROPRIATION TO FUND STATE ROAD
3.2OPERATION, MAINTENANCE, PLANNING, AND CONSTRUCTION.
3.3    Subdivision 1. Appropriation for state roads. If, before July 1 of an odd-numbered
3.4year, legislation is not enacted to appropriate money to the commissioner of transportation
3.5for state roads in the next fiscal year, on July 1, an amount sufficient to pay the costs
3.6described in this subdivision is appropriated from the trunk highway fund to the
3.7commissioner of transportation for costs of contracts relating to state roads operation
3.8and maintenance, program planning and delivery, and state road construction. The
3.9appropriation must be sufficient to pay both the described contract costs and the costs of
3.10Department of Transportation employees whose work is essential to the administration
3.11and performance of the contracts. This section applies only to those contracts as to which
3.12funds were encumbered before the July 1 appropriation date. The commissioner of
3.13management and budget shall ensure that the commissioner of transportation is able to
3.14access money under this appropriation. Any subsequent appropriation to the commissioner
3.15of transportation for a biennium in which this subdivision has been applied shall supersede
3.16and replace the funding authorized in this subdivision.
3.17    Subd. 2. Continued operations. If, by July 1 of an odd-numbered year, legislation
3.18has not been enacted to appropriate money for the next biennium to the commissioner
3.19of management and budget for central accounting, procurement, payroll, and human
3.20resources functions, amounts necessary to operate those functions stated in subdivision
3.211 are appropriated for the next biennium from the general fund to the commissioner of
3.22management and budget. As necessary, the commissioner may transfer a portion of
3.23this appropriation to other state agencies to support carrying out these functions. Any
3.24subsequent appropriation to the commissioner of management and budget for a biennium
3.25in which this section has been applied shall supersede and replace the funding authorized
3.26in this section.

3.27    Sec. 5. [161.3207] CONSTRUCTION MANAGER/GENERAL CONTRACTOR
3.28CONTRACTS; DEFINITIONS.
3.29    Subdivision 1. Scope. The terms used in sections 161.3207 to 161.3209 have the
3.30meanings given them in this section.
3.31    Subd. 2. Acceptance. "Acceptance" means an action of the commissioner
3.32authorizing the execution of a construction manager/general contractor contract.
3.33    Subd. 3. Commissioner. "Commissioner" means the commissioner of
3.34transportation.
4.1    Subd. 4. Construction manager/general contractor. "Construction
4.2manager/general contractor" means a proprietorship, partnership, limited liability
4.3partnership, joint venture, corporation, any type of limited liability company, professional
4.4corporation, or any legal entity selected by the commissioner to act as a construction
4.5manager to manage the construction process, which includes, but is not limited to,
4.6responsibility for the price, schedule, and execution of preconstruction services or the
4.7workmanship of construction performed according to section 161.3209, or both.
4.8    Subd. 5. Construction manager/general contractor contract. "Construction
4.9manager/general contractor contract" means a contract for construction of a project
4.10between a construction manager/general contractor and the commissioner, which
4.11must include terms providing for a price, construction schedule, and workmanship of
4.12the construction performed. The construction manager/general contractor contract
4.13may include provisions for incremental price contracts for specific work packages,
4.14additional work performed, contingencies, or other contract provisions that will allow the
4.15commissioner to negotiate time and cost changes to the contract.
4.16    Subd. 6. Past performance; experience. "Past performance" or "experience" does
4.17not include the exercise or assertion of a person's legal rights.
4.18    Subd. 7. Preconstruction services. "Preconstruction services" means all
4.19non-construction-related services that a construction manager/general contractor is
4.20allowed to perform before execution of a construction manager/general contractor contract
4.21or work package.
4.22    Subd. 8. Preconstruction services contract. "Preconstruction services contract"
4.23means a contract under which a construction manager/general contractor is paid on the
4.24basis of the actual cost to perform the work specified in the contract plus an amount for
4.25overhead and profit for all preconstruction services.
4.26    Subd. 9. Project. "Project" means any project selected by the commissioner as a
4.27construction manager/general contractor project under section 161.3208.
4.28    Subd. 10. Request for proposals; RFP. "Request for proposals" or "RFP" means
4.29the document or publication soliciting proposals for a construction manager/general
4.30contractor contract.
4.31    Subd. 11. Request for qualifications; RFQ. "Request for qualifications" or "RFQ"
4.32means a document or publication used to prequalify and short-list potential construction
4.33managers/general contractors.
4.34    Subd. 12. Work package. "Work package" means the scope of work for a defined
4.35portion of a project. A defined portion includes construction services on any project
4.36aspect, including procuring materials or services.
5.1EFFECTIVE DATE.This section is effective the day following final enactment
5.2and expires one year following the acceptance of ten construction manager/general
5.3contractor contracts.

5.4    Sec. 6. [161.3208] CONSTRUCTION MANAGER/GENERAL CONTRACTOR
5.5AUTHORITY.
5.6    Subdivision 1. Selection authority; limitation. Notwithstanding sections 16C.25,
5.7161.32, and 161.321, or any other law to the contrary, the commissioner may select a
5.8construction manager/general contractor as provided in section 161.3209, and award a
5.9construction manager/general contractor contract. The number of awarded contracts
5.10shall not exceed four in any calendar year.
5.11    Subd. 2. Determination. Final determination to use a construction manager/general
5.12contractor contracting procedure may be made only by the commissioner.
5.13    Subd. 3. Cancellation. The solicitation of construction manager/general contractor
5.14requests for qualifications or proposals does not obligate the commissioner to enter into a
5.15construction manager/general contractor contract. The commissioner may accept or reject
5.16any or all responses received as a result of the request. The solicitation of proposals may
5.17be canceled at any time at the commissioner's sole discretion if cancellation is considered
5.18to be in the state's best interest. If the commissioner rejects all responses or cancels the
5.19solicitation for proposals, the commissioner may resolicit a request for proposals using the
5.20same or different requirements.
5.21    Subd. 4. Reporting. The commissioner shall notify the chairs and ranking minority
5.22members of the senate and house of representatives committees with jurisdiction over
5.23transportation policy and transportation finance each time the commissioner decides to
5.24use the construction manager/general contractor method of procurement and explain why
5.25that method was chosen.
5.26EFFECTIVE DATE.This section is effective the day following final enactment
5.27and expires one year following the acceptance of ten construction manager/general
5.28contractor contracts.

5.29    Sec. 7. [161.3209] CONSTRUCTION MANAGER/GENERAL CONTRACTOR;
5.30PROCEDURES.
5.31    Subdivision 1. Solicitation of proposals. If the commissioner determines that
5.32a construction manager/general contractor method of procurement is appropriate for
5.33a project, the commissioner shall establish a two-phase procedure for awarding the
5.34construction manager/general contractor contract, as described in subdivisions 2 and 3.
6.1    Subd. 2. Phase 1 - request for proposals. (a) The commissioner shall prepare
6.2or have prepared an RFP for each construction manager/general contractor contract as
6.3provided in this section. The RFP must contain, at a minimum, the following elements:
6.4(1) the minimum qualifications of the construction manager/general contractor;
6.5(2) the procedures for submitting proposals and the criteria for evaluation of
6.6qualifications and the relative weight for each criteria;
6.7(3) the form of the contract to be awarded;
6.8(4) the scope of intended construction work;
6.9(5) a listing of the types of preconstruction services that will be required;
6.10(6) an anticipated schedule for commencing and completing the project;
6.11(7) any applicable budget limits for the project;
6.12(8) the requirements for insurance, statutorily required performance, and payment
6.13bonds;
6.14(9) the requirements that the construction manager/general contractor provide a
6.15letter from a surety or insurance company stating that the construction manager/general
6.16contractor is capable of obtaining a performance bond and payment bond covering the
6.17estimated contract cost;
6.18(10) the method for how construction manager/general contractor fees for the
6.19preconstruction services contract will be negotiated;
6.20(11) a statement that past performance or experience does not include the exercise
6.21or assertion of a person's legal rights; and
6.22(12) any other information desired by the commissioner.
6.23(b) Before receiving any responses to the RFP:
6.24(1) the commissioner shall appoint a technical review committee of at least five
6.25individuals, of which one is a Department of Transportation manager who is also a
6.26licensed professional engineer in Minnesota;
6.27(2) the technical review committee shall evaluate the construction manager/general
6.28contractor proposals according to criteria and subcriteria published in the RFP and
6.29procedures established by the commissioner. The commissioner shall, as designated in
6.30the RFP, evaluate construction manager/general contractor proposals on the basis of best
6.31value as defined in section 16C.05, or using the qualifications-based selection process set
6.32forth in section 16C.095, except that subdivision 1 of section 16C.095 shall not apply. If
6.33the commissioner does not receive at least two proposals from construction managers,
6.34the commissioner may:
6.35(i) solicit new proposals;
6.36(ii) revise the RFP and thereafter solicit new proposals using the revised RFP;
7.1(iii) select another allowed procurement method; or
7.2(iv) reject the proposals; and
7.3(3) the technical review committee shall evaluate the responses to the request for
7.4proposals and rank the construction manager/general contractor based on the predefined
7.5criteria set forth in the RFP in accordance with paragraph (a), clause (2).
7.6(c) Unless all proposals are rejected, the commissioner shall conduct contract
7.7negotiations for a preconstruction services contract with the construction manager/general
7.8contractor with the highest ranking. If the construction manager/general contractor with
7.9the highest ranking declines or is unable to reach an agreement, the commissioner may
7.10begin contract negotiations with the next highest ranked construction manager/general
7.11contractor.
7.12(d) Before issuing the RFP, the commissioner may elect to issue a request for
7.13qualifications (RFQ) and short-list the most highly qualified construction managers/general
7.14contractors. The RFQ must include the procedures for submitting statements of
7.15qualification, the criteria for evaluation of qualifications, and the relative weight for each
7.16criterion. The statements of qualifications must be evaluated by the technical review
7.17committee.
7.18    Subd. 3. Phase 2 - construction manager/general contractor contract. (a) Before
7.19conducting any construction-related services, the commissioner shall:
7.20(1) conduct an independent cost estimate for the project or each work package; and
7.21(2) conduct contract negotiations with the construction manager/general contractor
7.22to develop a construction manager/general contractor contract. This contract must include
7.23a minimum construction manager/general contractor self-performing requirement of 30
7.24percent of the negotiated cost. Items designated in the construction manager/general
7.25contractor contract as specialty items may be subcontracted and the cost of any specialty
7.26item performed under the subcontract will be deducted from the cost before computing the
7.27amount of work required to be performed by the contractor.
7.28(b) If the construction manager/general contractor and the commissioner are unable
7.29to negotiate a contract, the commissioner may use other contract procurement processes or
7.30may readvertise the construction manager/general contractor contract. The construction
7.31manager/general contractor may (1) bid or propose on the project if advertised under
7.32section 161.32 or 161.3206 or (2) join a design-build team if advertised under sections
7.33161.3410 to 161.3428.
7.34(c) The commissioner shall provide to all bidders or design-build teams, all data
7.35shared between the commissioner and the construction manager/general contractor during
7.36the contract negotiations under this subdivision.
8.1EFFECTIVE DATE.This section is effective the day following final enactment
8.2and expires one year following the acceptance of ten construction manager/general
8.3contractor contracts.

8.4    Sec. 8. Minnesota Statutes 2010, section 161.321, is amended to read:
8.5161.321 SMALL BUSINESS CONTRACTS.
8.6    Subdivision 1. Definitions. For purposes of this section the following terms have
8.7the meanings given them, except where the context clearly indicates a different meaning is
8.8intended.
8.9(a) "Award" means the granting of a contract in accordance with all applicable laws
8.10and rules governing competitive bidding except as otherwise provided in this section.
8.11(b) "Contract" means an agreement entered into between a business entity and the
8.12state of Minnesota for the construction of transportation improvements.
8.13(c) "Subcontractor" means a business entity which enters into a legally binding
8.14agreement with another business entity which is a party to a contract as defined in
8.15paragraph (b).
8.16(d) "Targeted group business" means a business designated under section 16C.16,
8.17subdivision 5 .
8.18(e) "Veteran-owned small business" means a business designated under section
8.1916C.16, subdivision 6a .
8.20    Subd. 2. Small business set-asides; procurement and construction contract
8.21preferences. (a) The commissioner may award up to a six percent preference in the
8.22amount bid for specified construction work to small targeted group businesses and
8.23veteran-owned small businesses.
8.24(b) The commissioner may designate a contract for construction work for award only
8.25to small targeted group businesses if the commissioner determines that at least three small
8.26targeted group businesses are likely to bid. The commissioner may designate a contract for
8.27construction work for award only to veteran-owned small businesses if the commissioner
8.28determines that at least three veteran-owned small businesses are likely to bid.
8.29(c) The commissioner, as a condition of awarding a construction contract, may
8.30set goals that require the prime contractor to subcontract a portion of the contract to
8.31small targeted group businesses and veteran-owned small businesses. The commissioner
8.32must establish a procedure for granting waivers from the subcontracting requirement
8.33when qualified small targeted group businesses and veteran-owned small businesses
8.34are not reasonably available. The commissioner may establish financial incentives for
8.35prime contractors who exceed the goals for use of subcontractors and financial penalties
9.1for prime contractors who fail to meet goals under this paragraph. The subcontracting
9.2requirements of this paragraph do not apply to prime contractors who are small targeted
9.3group businesses or veteran-owned small businesses.
9.4(d) The commissioner may award up to a four percent preference in the amount
9.5bid on procurement for specified construction work to small businesses located in an
9.6economically disadvantaged area as defined in section 16C.16, subdivision 7.
9.7    Subd. 2a. Subcontracting goals. (a) The commissioner, as a condition of awarding
9.8a construction contract, may set goals that require the prime contractor to subcontract
9.9portions of the contract to small targeted group businesses and veteran-owned small
9.10businesses. Prime contractors must demonstrate good faith efforts to meet the project
9.11goals. The commissioner shall establish a procedure for granting waivers from the
9.12subcontracting requirement when either qualified small targeted group businesses or
9.13veteran-owned small businesses, or both, are not reasonably available. The commissioner
9.14may establish (1) financial incentives for prime contractors who exceed the goals set for
9.15the use of subcontractors under this subdivision and (2) sanctions for prime contractors
9.16who fail to make good faith efforts to meet the goals set under this subdivision.
9.17(b) The small targeted group business subcontracting requirements of this
9.18subdivision do not apply to prime contractors who are small targeted group businesses.
9.19The veteran-owned small business subcontracting requirements of this subdivision do not
9.20apply to prime contractors who are veteran-owned small businesses.
9.21    Subd. 3. Subcontract awards to small businesses. At least 75 percent of
9.22subcontracts awarded to small targeted group businesses must be performed by the
9.23business to which the subcontract is awarded or another small targeted group business.
9.24At least 75 percent of subcontracts awarded to veteran-owned small businesses must be
9.25performed by the business to which the subcontract is awarded or another veteran-owned
9.26small business.
9.27    Subd. 4. Contract awards, limitations. Contracts awarded pursuant to this
9.28section are subject to all limitations contained in rules adopted by the commissioner
9.29of administration.
9.30    Subd. 4a. Limited duration and reevaluation. The commissioner shall cooperate
9.31with the commissioner of administration to periodically reevaluate the targeted group
9.32businesses to determine that there is a statistical disparity between the percentage of
9.33construction contracts awarded to businesses owned by targeted group members and the
9.34representation of businesses owned by targeted group members among all businesses in
9.35the state in the construction category. The commissioner of administration shall designate
9.36targeted groups pursuant to section 16C.16, subdivision 5.
10.1    Subd. 5. Recourse to other businesses. If the commissioner is unable to award
10.2a contract pursuant to the provisions of subdivisions 2 and 3 to 4a, the award may be
10.3placed pursuant to the normal solicitation and award provisions set forth in this chapter
10.4and chapter 16C.
10.5    Subd. 6. Rules; eligibility. (a) The rules adopted by the commissioner of
10.6administration to define small businesses and to set time and other eligibility requirements
10.7for participation in programs under sections 16C.16 to 16C.19 apply to this section. The
10.8commissioner may promulgate other rules necessary to carry out this section.
10.9(b) In addition to other eligibility requirements, a small targeted group business or
10.10veteran-owned small business is eligible for the bid preferences under this section only
10.11for eight years following the later of: (1) the effective date of this act; or (2) the date of
10.12initial designation as a small targeted group business or veteran-owned small business by
10.13the commissioner of administration under section 16C.16.
10.14    Subd. 7. Noncompetitive bids. The commissioner is encouraged to purchase
10.15from small targeted group businesses and veteran-owned small businesses designated
10.16under section 16C.16 when making purchases that are not subject to competitive bidding
10.17procedures.
10.18    Subd. 8. Report by commissionerReporting. (a) The commissioner of
10.19transportation shall report to the commissioner of administration on compliance with this
10.20section. The information must be reported at the time and in the manner requested by the
10.21commissioner of administration.
10.22(b) By February 1 of each even-numbered year, the commissioner shall submit a
10.23report to the chairs and ranking minority members of the legislative committees with
10.24jurisdiction over transportation policy and finance concerning contract awards under this
10.25section. At a minimum, the report must include:
10.26(1) a summary of the program;
10.27(2) a review of the use of preferences for contracting, including frequency of
10.28establishment of a preference and frequency of contract award to a small targeted group
10.29business or veteran-owned small business;
10.30(3) a review of goals and good faith efforts to use small targeted group businesses
10.31and veteran-owned small businesses in subcontracts, including analysis of methods used
10.32for, and effectiveness of, good faith efforts;
10.33(4) a summary of any financial incentives or sanctions imposed;
10.34(5) information on each reevaluation under subdivision 4a, including details on the
10.35methodology for reevaluation; and
10.36(6) any recommendations for legislative or programmatic changes.

11.1    Sec. 9. Minnesota Statutes 2010, section 162.02, subdivision 2, is amended to read:
11.2    Subd. 2. Rules; advisory committee. (a) The rules shall be made and promulgated
11.3by the commissioner acting with the advice of a committee selected by the several county
11.4boards acting through the officers of the statewide association of county commissioners.
11.5The committee shall be composed of nine members so selected that each member shall
11.6be from a different state highway construction district. Not more than five of the nine
11.7members of the committee shall be county commissioners. The remaining members shall
11.8be county highway engineers. In the event that agreement cannot be reached on any rule,
11.9the commissioner's determination shall be final. The rules shall be printed and copies
11.10forwarded to the county engineers of the several counties. For the purposes of this section,
11.11the expedited process for adopting rules established in section 14.389 may be used.
11.12(b) Notwithstanding section 15.059, subdivision 5, the committee does not expire.

11.13    Sec. 10. Minnesota Statutes 2010, section 162.02, subdivision 3, is amended to read:
11.14    Subd. 3. Rules have force of law. The rules shall have the force and effect of law
11.15upon compliance with the provisions of sections 14.05 to 14.28 as provided in chapter 14.

11.16    Sec. 11. Minnesota Statutes 2010, section 162.09, subdivision 2, is amended to read:
11.17    Subd. 2. Rules; advisory committee. (a) The rules shall be made and promulgated
11.18by the commissioner acting with the advice of a committee selected by the governing
11.19bodies of such cities, acting through the officers of the statewide association of municipal
11.20officials. The committee shall be composed of 12 members, so selected that there shall be
11.21one member from each state highway construction district and in addition one member
11.22from each city of the first class. Not more than six members of the committee shall be
11.23elected officials of the cities. The remaining members of the committee shall be city
11.24engineers. In the event that agreement cannot be reached on any rule the commissioner's
11.25determination shall be final. The rules shall be printed and copies forwarded to the clerks
11.26and engineers of the cities. For the purposes of this section, the expedited process for
11.27adopting rules established in section 14.389 may be used.
11.28(b) Notwithstanding section 15.059, subdivision 5, the committee does not expire.

11.29    Sec. 12. Minnesota Statutes 2010, section 162.09, subdivision 3, is amended to read:
11.30    Subd. 3. Rules have force of law. The rules shall have the force and effect of law
11.31upon compliance with the provisions of sections 14.05 to 14.28 as provided in chapter 14.

11.32    Sec. 13. Minnesota Statutes 2010, section 162.09, subdivision 4, is amended to read:
12.1    Subd. 4. Federal census is conclusive. (a) In determining whether any city has
12.2a population of 5,000 or more, the last federal census shall be conclusive, except as
12.3otherwise provided in this subdivision.
12.4(b) The governing body of a city may contract with the United States Bureau of the
12.5Census to take a special census. A certified copy of the results of the census shall be filed
12.6with the appropriate state authorities by the city. The result of the census shall be the
12.7population of the city for the purposes of any law providing that population is a required
12.8qualification for distribution of highway aids under chapter 162. The special census shall
12.9remain in effect until the next federal census is completed and filed. The expense of taking
12.10the special census shall be paid by the city.
12.11(c) If an entire area not heretofore incorporated as a city is incorporated as such
12.12during the interval between federal censuses, its population shall be determined by its
12.13incorporation census. The incorporation census shall be determinative of the population of
12.14the city only until the next federal census.
12.15(d) The population of a city created by the consolidation of two or more previously
12.16incorporated cities shall be determined by the most recent population estimate of the
12.17Metropolitan Council or state demographer, until the first federal decennial census or
12.18special census taken after the consolidation.
12.19(e) The population of a city that is not receiving a municipal state-aid street fund
12.20apportionment shall be determined, upon request of the city, by the most recent population
12.21estimate of the Metropolitan Council or state demographer. A municipal state-aid street
12.22fund apportionment received by the city must be based on this population estimate until
12.23the next federal decennial census or special census.
12.24(f) A city that is found in the most recent federal decennial census to have fewer
12.25than 5,000 population is deemed for the purposes of this chapter and the Minnesota
12.26Constitution, Article XIV, to have a population of 5,000 or more under the following
12.27circumstances: (1) immediately before the most recent federal decennial census, the city
12.28was receiving municipal state-aid street fund distributions; and (2) the population of
12.29the city was found in the most recent federal decennial census to be fewer than 5,000.
12.30Following the end of the first calendar year that ends in "4" after the decennial census and
12.31until the next decennial census, the population of any city must be determined under
12.32paragraphs (a) to (e).
12.33EFFECTIVE DATE.This section is effective July 1, 2012.

12.34    Sec. 14. Minnesota Statutes 2010, section 162.13, subdivision 1, is amended to read:
13.1    Subdivision 1. Factors in formula. After deducting for administrative costs and
13.2for the disaster fund and research account as heretofore provided, and for any allocation
13.3made under section 162.125, the remainder of the total sum provided for in subdivision 1
13.4of section 162.12 shall be identified as the apportionment sum, and shall be apportioned
13.5by the commissioner to the cities having a population of 5,000 or more, in accordance
13.6with the following formula:
13.7(1) An amount equal to 50 percent of such apportionment sum shall be apportioned
13.8among the cities having a population of 5,000 or more so that each such city shall receive
13.9of such amount the percentage that its money needs bears to the total money needs of
13.10all such cities.
13.11(2) An amount equal to 50 percent of such apportionment sum shall be apportioned
13.12among the cities having a population of 5,000 or more so that each such city shall receive
13.13of such amount the percentage that its population bears to the total population of all such
13.14cities. For purposes of this subdivision, population of a city is the greater of 5,000 or the
13.15number calculated under section 162.09, subdivision 4, paragraph (a), (b), (c), (d), or (e).
13.16EFFECTIVE DATE.This section is effective July 1, 2012.

13.17    Sec. 15. Minnesota Statutes 2010, section 162.155, is amended to read:
13.18162.155 RULES FOR VARIANCES RULEMAKING.
13.19(a) The commissioner shall adopt rules, no later than January 1, 1980, in accordance
13.20with sections 15.041 to 15.052, setting forth the criteria to be considered by the
13.21commissioner in evaluating requests for variances under sections 162.02, subdivision 3a
13.22and 162.09, subdivision 3a. The rules shall must include, but are not limited to, economic,
13.23engineering and safety guidelines.
13.24(b) The commissioner shall adopt rules establishing the engineering standards
13.25adopted pursuant to section for cost estimation under sections 162.07, subdivision 2,
13.26or and 162.13, subdivision 2, shall be adopted pursuant to the requirements of chapter
13.2715 by July 1, 1980.
13.28(c) The rules adopted by the commissioner under this section, and sections
13.29162.02; 162.07, subdivision 2; 162.09; and 162.13, subdivision 2, are exempt from the
13.30rulemaking provisions of chapter 14. The rules are subject to section 14.386, except that,
13.31notwithstanding paragraph (b) of that section, the rules continue in effect until repealed or
13.32superseded by other law or rule.

13.33    Sec. 16. Minnesota Statutes 2010, section 168.10, subdivision 1a, is amended to read:
14.1    Subd. 1a. Collector's vehicle, pioneer plate. (a) Any motor vehicle that: (1) was
14.2manufactured prior to 1936 or is a restored pioneer vehicle, as defined in section 168A.01,
14.3subdivision 16a; and (2) is owned and operated solely as a collector's item shall be listed
14.4for taxation and registration as follows: as provided by paragraph (b).
14.5(b) An affidavit shall be executed stating the name and address of the owner, the
14.6name and address of the person from whom purchased, the make of the motor vehicle,
14.7year and number of the model, the manufacturer's identification number and that the
14.8vehicle is owned and operated solely as a collector's item and not for general transportation
14.9purposes. If the commissioner is satisfied that the affidavit is true and correct and the
14.10owner pays a $25 tax and the plate fee authorized under section 168.12, the commissioner
14.11shall list such vehicle for taxation and registration and shall issue a single number plate.
14.12    (b) (c) The number plate so issued shall bear the inscription "Pioneer," "Minnesota"
14.13and the registration number or other combination of characters authorized under section
14.14168.12, subdivision 2a , but no date. The number plate is valid without renewal as long as
14.15the vehicle is in existence in Minnesota. The commissioner has the power to revoke said
14.16plate for failure to comply with this subdivision.

14.17    Sec. 17. Minnesota Statutes 2010, section 168.27, subdivision 2, is amended to read:
14.18    Subd. 2. New motor vehicle dealer. (a) A new motor vehicle dealer licensee may
14.19sell, broker, wholesale, or auction and solicit and advertise the sale, brokerage, wholesale,
14.20or auction of new motor vehicles covered by the franchise and any used motor vehicles,
14.21and may lease and solicit and advertise the lease of new motor vehicles and any used
14.22motor vehicles. New motor vehicle dealer sales or leases may be either for consumer
14.23use at retail or for resale to a dealer. A new motor vehicle dealer may engage in the
14.24business of buying or otherwise acquiring vehicles for dismantling the vehicles and
14.25selling used parts and remaining scrap materials under chapter 168A, except that a new
14.26motor vehicle dealer may not purchase a junked vehicle from a salvage pool, insurance
14.27company, or its agent unless the dealer is also licensed as a used vehicle parts dealer or
14.28licensed as a scrap metal processor. Nothing in this subdivision requires an applicant for
14.29a dealer license who proposes to deal in: (1) new and unused motor vehicle bodies; or
14.30(2) type A, B, or C motor homes as defined in section 168.002, subdivision 27, to have
14.31a bona fide contract or franchise in effect with either the first-stage manufacturer of the
14.32motor home or the manufacturer or distributor of any motor vehicle chassis upon which
14.33the new and unused motor vehicle body is mounted. The modification or conversion
14.34of a new van-type vehicle into a multipurpose passenger vehicle which is not a motor
14.35home does not constitute dealing in new or unused motor vehicle bodies, and a person
15.1engaged in the business of selling these van-type vehicles must have a bona fide contract
15.2or franchise with the appropriate manufacturer under subdivision 10. A van converter
15.3or modifier who owns these modified or converted van-type vehicles may sell them at
15.4wholesale to new motor vehicle dealers having a bona fide contract or franchise with the
15.5first-stage manufacturer of the vehicles.
15.6(b) The requirements pertaining to franchises do not apply to persons who remodel
15.7or convert motor vehicles for medical purposes. For purposes of this subdivision, "medical
15.8purpose" means certification by a licensed physician that remodeling or conversion of a
15.9motor vehicle is necessary to enable a disabled person to use the vehicle.
15.10(c) A new motor vehicle dealer shall not deliver a manufacturer's or importer's
15.11certificate of origin for a passenger automobile, pickup truck, or van requiring a certificate
15.12of title according to chapter 168A to any person in conjunction with the sale of a vehicle
15.13except to the department, another new motor vehicle dealer licensed to sell the same
15.14line or make, or a person whose primary business is picking up and delivering motor
15.15vehicle title documents.
15.16(d) If a new motor vehicle dealer agrees to sell or lease a new motor vehicle using
15.17the services of a motor vehicle broker, the new motor vehicle dealer may not refuse to
15.18deliver possession of the vehicle to the buyer or lessee. This paragraph does not require
15.19delivery unless all arrangements have been properly completed for payment, insurance
15.20required by law, titling, transfer, and registration of the new vehicle and any trade-in
15.21vehicle. Delivery may take place at or away from the dealership.

15.22    Sec. 18. Minnesota Statutes 2010, section 168.27, subdivision 3, is amended to read:
15.23    Subd. 3. Used motor vehicle dealer. A used motor vehicle dealer licensee may sell,
15.24lease, broker, wholesale, or auction and solicit and advertise the sale, lease, brokerage,
15.25wholesale, or auction of any used motor vehicles for consumer use at retail or for resale to
15.26a dealer. A used motor vehicle dealer may engage in the business of buying or otherwise
15.27acquiring vehicles for dismantling the vehicles and selling used parts and remaining scrap
15.28materials under chapter 168A, except that a used motor vehicle dealer may not acquire a
15.29junked vehicle from a salvage pool, insurance company, or its agent, unless the dealer is
15.30also licensed as a used vehicle parts dealer or licensed as a scrap metal processor.

15.31    Sec. 19. Minnesota Statutes 2010, section 168.27, subdivision 3c, is amended to read:
15.32    Subd. 3c. Vehicle salvage pool. A vehicle salvage pool licensee may store and
15.33display and may solicit and advertise the storing and displaying, for sale, of damaged or
15.34junked vehicles as an agent or escrow agent of an insurance company. A vehicle salvage
16.1pool licensee shall not sell junked vehicles to any party other than a licensed used parts
16.2dealer or a licensed scrap metal processor.

16.3    Sec. 20. Minnesota Statutes 2010, section 168A.01, subdivision 6a, is amended to read:
16.4    Subd. 6a. High-value vehicle. "High-value vehicle" means a vehicle manufactured
16.5six or more years before the start of the current model year that had an actual cash value in
16.6excess of $5,000 $9,000 before being damaged, or a vehicle with a manufacturer's rating
16.7of over 26,000 pounds gross vehicle weight that is not a late-model vehicle.

16.8    Sec. 21. Minnesota Statutes 2010, section 168A.01, subdivision 8a, is amended to read:
16.9    Subd. 8a. Late-model vehicle. "Late-model vehicle" means a vehicle manufactured
16.10in the current model year or the five model years with a manufacturer's designated model
16.11year equal to or greater than the fifth calendar year immediately preceding the current
16.12model calendar year.

16.13    Sec. 22. Minnesota Statutes 2010, section 168A.01, subdivision 12a, is amended to
16.14read:
16.15    Subd. 12a. Older model vehicle. "Older model vehicle" means a vehicle
16.16manufactured in the sixth model year immediately preceding the current model year or
16.17earlier that is not a high-value vehicle that is not a late-model vehicle.

16.18    Sec. 23. Minnesota Statutes 2010, section 168A.01, subdivision 16, is amended to read:
16.19    Subd. 16. Reconstructed vehicle. (a) "Reconstructed vehicle" means a vehicle of a
16.20type for which a certificate of title is required hereunder materially altered from its original
16.21construction by the removal, addition, or substitution of essential parts, new or used.
16.22(b) Reconstructed vehicle does not include a restored pioneer vehicle.

16.23    Sec. 24. Minnesota Statutes 2010, section 168A.01, is amended by adding a
16.24subdivision to read:
16.25    Subd. 16a. Restored pioneer vehicle. (a) "Restored pioneer vehicle" means
16.26a vehicle:
16.27(1) for which a certificate of title is required under this chapter;
16.28(2) originally manufactured prior to 1919;
16.29(3) for which one or more essential parts, whether new or used, are replaced; and
16.30(4) for which each essential part under clause (3) is replaced:
17.1(i) only as necessary in order to restore or retain the character and appearance of the
17.2vehicle as originally manufactured;
17.3(ii) in a manner which reasonably restores or retains the character and appearance of
17.4the vehicle as originally manufactured; and
17.5(iii) in a manner which substantially conforms to the fit, form, and function of the
17.6original essential part.
17.7(b) A vehicle meeting both the requirements under paragraph (a) and subdivision 16
17.8for a reconstructed vehicle is a restored pioneer vehicle.
17.9(c) For purposes of this subdivision, replacement of an essential part includes, but is
17.10not limited to, removal, addition, modification, or substitution of the essential part.

17.11    Sec. 25. Minnesota Statutes 2010, section 168A.04, subdivision 5, is amended to read:
17.12    Subd. 5. Specially constructed or reconstructed vehicle Certain unconventional
17.13vehicles; additional information; identifying number. (a) Except as provided in
17.14subdivision 6, if the application refers to a specially constructed vehicle or, a reconstructed
17.15vehicle, or a restored pioneer vehicle, the application shall so state and shall contain or
17.16be accompanied by:
17.17(1) any information and documents the department reasonably requires to establish
17.18the ownership of the vehicle and the existence or nonexistence and priority of security
17.19interests in it;
17.20(2) the certificate of a person authorized by the department that the identifying
17.21number of the vehicle has been inspected and found to conform to the description given in
17.22the application, or any other proof of the identity of the vehicle the department reasonably
17.23requires; and
17.24(3) at the time of application, a written certification to the department that the vehicle
17.25to be titled meets the requirements of chapter 169 for vehicles in its class regarding safety
17.26and acceptability to operate on public roads and highways.
17.27(b) As part of the application for certificate of title on a restored pioneer vehicle, the
17.28applicant shall supply evidence of the manufacturer's year, make, model, and identifying
17.29number of the vehicle. A manufacturer's identifying number is valid under this paragraph
17.30if it matches a number permanently affixed, stamped, or otherwise assigned to at least one
17.31essential part of the motor vehicle, including but not limited to the engine block or the
17.32vehicle body. In the case of an insufficient application, the commissioner may require
17.33additional documentation, including, but not limited to, photographic proof, copies of
17.34original vehicle catalogs, or certification letters from antique car collector organizations to
17.35confirm the manufacturer's identifying number on the vehicle.

18.1    Sec. 26. Minnesota Statutes 2010, section 168A.05, subdivision 3, is amended to read:
18.2    Subd. 3. Content of certificate. (a) Each certificate of title issued by the department
18.3shall contain:
18.4    (1) the date issued;
18.5    (2) the first, middle, and last names and the dates of birth of all owners who are
18.6natural persons, and the full names of all other owners;
18.7    (3) the residence address of the owner listed first if that owner is a natural person or
18.8the address if that owner is not a natural person;
18.9    (4) the names of any secured parties, and the address of the first secured party,
18.10listed in the order of priority (i) as shown on the application, or (ii) if the application is
18.11based on a certificate of title, as shown on the certificate, or (iii) as otherwise determined
18.12by the department;
18.13    (5) any liens filed pursuant to a court order or by a public agency responsible for
18.14child support enforcement against the owner;
18.15    (6) the title number assigned to the vehicle;
18.16    (7) a description of the vehicle including, so far as the following data exists, its
18.17make, model, year, identifying number, type of body, whether new or used, and if a new
18.18vehicle, the date of the first sale of the vehicle for use;
18.19    (8) with respect to a motor vehicle subject to section 325E.15, (i) the true cumulative
18.20mileage registered on the odometer or (ii) that the actual mileage is unknown if the
18.21odometer reading is known by the owner to be different from the true mileage;
18.22    (9) with respect to a vehicle subject to sections 325F.6641 and 325F.6642, the
18.23appropriate term "flood damaged," "rebuilt," "prior salvage," or "reconstructed";
18.24    (10) with respect to a vehicle contaminated by methamphetamine production, if the
18.25registrar has received the certificate of title and notice described in section 152.0275,
18.26subdivision 2 , paragraph (g), the term "hazardous waste contaminated vehicle";
18.27    (11) with respect to a vehicle subject to section 325F.665, the term "lemon law
18.28vehicle"; and
18.29    (12) any other data the department prescribes.
18.30(b) For a certificate of title on a vehicle that is a restored pioneer vehicle:
18.31(1) the identifying number must be the valid identifying number as provided under
18.32section 168A.04, subdivision 5;
18.33(2) the year of the vehicle must be the year of original vehicle manufacture and
18.34not the year of restoration; and
18.35(3) the title must not bear a "reconstructed vehicle" brand.

19.1    Sec. 27. Minnesota Statutes 2010, section 168A.09, is amended by adding a
19.2subdivision to read:
19.3    Subd. 4. Restored pioneer vehicle; replacement title. (a) The owner of a vehicle
19.4may apply to the commissioner for a replacement title if:
19.5(1) a Minnesota title has been issued prior to the effective date of this section; and
19.6(2) the vehicle meets the requirements for a restored pioneer vehicle under section
19.7168A.01, subdivision 16a.
19.8(b) The commissioner shall establish and make publicly available requirements for
19.9an application under this subdivision, and shall make reasonable efforts to minimize
19.10burden on the title applicant. Among the application requirements, a person applying for a
19.11replacement title shall surrender the original title.
19.12(c) The commissioner shall impose a fee for a replacement title issued under this
19.13subdivision that is equal to the fee for issuing a duplicate certificate of title under section
19.14168A.29. Fee proceeds must be allocated in the same manner as the fee for a duplicate
19.15certificate of title.

19.16    Sec. 28. Minnesota Statutes 2010, section 168A.15, subdivision 2, is amended to read:
19.17    Subd. 2. Certain unconventional vehicles; requirements to obtain certificate for
19.18reconstructed vehicle. If a vehicle is altered so as to become a reconstructed vehicle or
19.19restored pioneer vehicle, the owner shall apply for a certificate of title to the reconstructed
19.20vehicle in the manner provided in section 168A.04, and any existing certificate of title to
19.21the vehicle shall be surrendered for cancellation.

19.22    Sec. 29. Minnesota Statutes 2010, section 168A.151, subdivision 1, is amended to read:
19.23    Subdivision 1. Salvage titles. (a) When an insurer, licensed to conduct business in
19.24Minnesota, acquires ownership of a late-model or high-value vehicle through payment
19.25of damages, the insurer shall immediately apply for a salvage certificate of title or shall
19.26stamp the existing certificate of title with the legend "SALVAGE CERTIFICATE OF
19.27TITLE" in a manner prescribed by the department. Within 48 hours of taking possession
19.28ten days of obtaining the title of a vehicle through payment of damages, an insurer must
19.29notify the department in a manner prescribed by the department.
19.30    (b) A person shall immediately apply for a salvage certificate of title if the person
19.31acquires a damaged late-model or high-value motor vehicle with an out-of-state title
19.32and the vehicle:
19.33    (1) is a vehicle that was acquired by an insurer through payment of damages;
20.1    (2) is a vehicle for which the cost of repairs exceeds the value of the damaged
20.2vehicle; or
20.3    (3) has an out-of-state salvage certificate of title as proof of ownership.
20.4    (c) A self-insured owner of a late-model or high-value vehicle who that sustains
20.5damage by collision or other occurrence which exceeds 70 80 percent of its actual cash
20.6value shall immediately apply for a salvage certificate of title. Damage, for the purpose of
20.7this calculation, does not include the actual cost incurred to repair, replace, or reinstall
20.8inflatable safety restraints and other vehicle components that must be replaced due to the
20.9deployment of the inflatable safety restraints.

20.10    Sec. 30. Minnesota Statutes 2010, section 168A.151, subdivision 6, is amended to read:
20.11    Subd. 6. Authority under junking certificate. A junking certificate authorizes the
20.12holder only to possess and transport the vehicle, except that a salvage pool or insurance
20.13company, or its agent, may sell an unrepairable total loss vehicle with a junking certificate
20.14to a licensed used parts dealer or a licensed scrap metal processor.

20.15    Sec. 31. Minnesota Statutes 2010, section 169.06, subdivision 4, is amended to read:
20.16    Subd. 4. Obedience to traffic-control signal or flagger; presumptions. (a) The
20.17driver of any vehicle shall obey the instructions of any official traffic-control device
20.18applicable thereto placed in accordance with the provisions of this chapter, unless
20.19otherwise directed by a police officer or by a certified overdimensional load escort driver
20.20flagger authorized under this subdivision, subject to the exceptions granted the driver of
20.21an authorized emergency vehicle in this chapter.
20.22(b) No provision of this chapter for which official traffic-control devices are required
20.23shall be enforced against an alleged violator if at the time and place of the alleged
20.24violation an official device is not in proper position and sufficiently legible to be seen by
20.25an ordinarily observant person. Whenever a particular section does not state that official
20.26traffic-control devices are required, such section shall be effective even though no devices
20.27are erected or in place.
20.28(c) Whenever official traffic-control devices are placed in position approximately
20.29conforming to the requirements of this chapter, such devices shall be presumed to have
20.30been so placed by the official act or direction of lawful authority, unless the contrary
20.31shall be established by competent evidence.
20.32(d) Any official traffic-control device placed pursuant to the provisions of this
20.33chapter and purporting to conform to the lawful requirements pertaining to such devices
21.1shall be presumed to comply with the requirements of this chapter, unless the contrary
21.2shall be established by competent evidence.
21.3(e) A flagger in a designated work zone may stop vehicles and hold vehicles in place
21.4until it is safe for the vehicles to proceed. A person operating a motor vehicle that has
21.5been stopped by a flagger in a designated work zone may proceed after stopping only on
21.6instruction by the flagger.
21.7(f) An overdimensional load escort driver with a certificate issued under section
21.8299D.085 , while acting as a flagger escorting a legal overdimensional load, may stop
21.9vehicles and hold vehicles in place until it is safe for the vehicles to proceed. A person
21.10operating a motor vehicle that has been stopped by an escort driver acting as a flagger may
21.11proceed only on instruction by the flagger or a police officer.
21.12(g) A person may stop and hold vehicles in place until it is safe for the vehicles
21.13to proceed, if the person: (1) holds a motorcycle road guard certificate issued under
21.14section 171.60; (2) meets the safety and equipment standards for operating under the
21.15certificate; and (3) is acting as a flagger escorting a motorcycle group ride. A flagger
21.16operating as provided under this paragraph may direct operators of motorcycles within a
21.17motorcycle group ride or other vehicle traffic, notwithstanding any contrary indication of a
21.18traffic-control device, including stop signs or traffic-control signals. A person operating
21.19a vehicle that has been stopped by a flagger under this paragraph may proceed only on
21.20instruction by the flagger or a police officer.
21.21(h) A person representing a motorcycle group ride in any city of the first class may
21.22no later than seven days before the ride request of the city's police chief that traffic and
21.23traffic signals be controlled or modified to allow the ride to proceed through a specified
21.24route at a specified time without stopping. The police chief shall no later than three days
21.25before the ride notify the organizer as to whether the city will control traffic as requested
21.26at no cost to the organizer. If the city chooses not to control traffic as requested at no cost
21.27to the organizer, traffic may be controlled by persons authorized under paragraph (g)
21.28within the limits of that authority.
21.29EFFECTIVE DATE.
21.30This section is effective one year after publication in the State Register of rules
21.31adopted under section 47, subdivision 5.

21.32    Sec. 32. Minnesota Statutes 2010, section 169.09, subdivision 13, is amended to read:
21.33    Subd. 13. Reports confidential; evidence, fee, penalty, appropriation. (a) All
21.34reports and supplemental information required under this section must be for the use of the
22.1commissioner of public safety and other appropriate state, federal, county, and municipal
22.2governmental agencies for accident analysis purposes, except:
22.3(1) the commissioner of public safety or any law enforcement agency shall, upon
22.4written request of any individual involved in an accident or upon written request of the
22.5representative of the individual's estate, surviving spouse, or one or more surviving next
22.6of kin, or a trustee appointed under section 573.02, or other person injured in person,
22.7property, or means of support, or who incurs other pecuniary loss by virtue of the accident,
22.8disclose to the requester, the requester's legal counsel, or a representative of the requester's
22.9insurer the report required under subdivision 8;
22.10(2) the commissioner of public safety shall, upon written request, provide the driver
22.11filing a report under subdivision 7 with a copy of the report filed by the driver;
22.12(3) the commissioner of public safety may verify with insurance companies vehicle
22.13insurance information to enforce sections 65B.48, 169.792, 169.793, 169.796, and
22.14169.797 ;
22.15(4) the commissioner of public safety shall provide the commissioner of
22.16transportation the information obtained for each traffic accident involving a commercial
22.17motor vehicle, for purposes of administering commercial vehicle safety regulations; and
22.18(5) upon request, the commissioner of public safety shall provide the commissioner
22.19of transportation the information obtained for each traffic accident involving damage
22.20to state-owned infrastructure, for purposes of debt collection under section 161.20,
22.21subdivision 4; and
22.22(5) (6) the commissioner of public safety may give to the United States Department
22.23of Transportation commercial vehicle accident information in connection with federal
22.24grant programs relating to safety.
22.25(b) Accident reports and data contained in the reports are not discoverable under any
22.26provision of law or rule of court. No report shall be used as evidence in any trial, civil or
22.27criminal, or any action for damages or criminal proceedings arising out of an accident.
22.28However, the commissioner of public safety shall furnish, upon the demand of any person
22.29who has or claims to have made a report or upon demand of any court, a certificate
22.30showing that a specified accident report has or has not been made to the commissioner
22.31solely to prove compliance or failure to comply with the requirements that the report be
22.32made to the commissioner.
22.33(c) Nothing in this subdivision prevents any individual who has made a report under
22.34this section from providing information to any individuals involved in an accident or their
22.35representatives or from testifying in any trial, civil or criminal, arising out of an accident,
22.36as to facts within the individual's knowledge. It is intended by this subdivision to render
23.1privileged the reports required, but it is not intended to prohibit proof of the facts to
23.2which the reports relate.
23.3(d) Disclosing any information contained in any accident report, except as provided
23.4in this subdivision, section 13.82, subdivision 3 or 6, or other statutes, is a misdemeanor.
23.5(e) The commissioner of public safety shall charge authorized persons as described
23.6in paragraph (a) a $5 fee for a copy of an accident report. Ninety percent of the $5 fee
23.7collected under this paragraph must be deposited in the special revenue fund and credited
23.8to the driver services operating account established in section 299A.705 and ten percent
23.9must be deposited in the general fund. The commissioner may also furnish an electronic
23.10copy of the database of accident records, which must not contain personal or private data
23.11on an individual, to private agencies as provided in paragraph (g), for not less than the cost
23.12of preparing the copies on a bulk basis as provided in section 13.03, subdivision 3.
23.13(f) The fees specified in paragraph (e) notwithstanding, the commissioner and law
23.14enforcement agencies shall charge commercial users who request access to response or
23.15incident data relating to accidents a fee not to exceed 50 cents per record. "Commercial
23.16user" is a user who in one location requests access to data in more than five accident
23.17reports per month, unless the user establishes that access is not for a commercial purpose.
23.18Of the money collected by the commissioner under this paragraph, 90 percent must be
23.19deposited in the special revenue fund and credited to the driver services operating account
23.20established in section 299A.705 and ten percent must be deposited in the general fund.
23.21(g) The fees in paragraphs (e) and (f) notwithstanding, the commissioner shall
23.22provide an electronic copy of the accident records database to the public on a case-by-case
23.23basis using the cost-recovery charges provided for under section 13.03, subdivision
23.243 . The database provided must not contain personal or private data on an individual.
23.25However, unless the accident records database includes the vehicle identification number,
23.26the commissioner shall include the vehicle registration plate number if a private agency
23.27certifies and agrees that the agency:
23.28(1) is in the business of collecting accident and damage information on vehicles;
23.29(2) will use the vehicle registration plate number only for identifying vehicles that
23.30have been involved in accidents or damaged, to provide this information to persons
23.31seeking access to a vehicle's history and not for identifying individuals or for any other
23.32purpose; and
23.33(3) will be subject to the penalties and remedies under sections 13.08 and 13.09.

23.34    Sec. 33. Minnesota Statutes 2010, section 169.14, is amended by adding a subdivision
23.35to read:
24.1    Subd. 5g. Interstate Highway 35E. The commissioner shall designate the
24.2maximum speed limit on marked Interstate Highway No. 35E in the city of St. Paul,
24.3from its intersection with West Seventh Street to its intersection with marked Interstate
24.4Highway No. 94, as 50 miles per hour. Any speed in excess of the speed designated
24.5in this subdivision is unlawful.
24.6EFFECTIVE DATE.This section is effective on the date the commissioner erects
24.7appropriate signs designating the speed limit, which must occur on or before August
24.81, 2012.

24.9    Sec. 34. Minnesota Statutes 2010, section 169.4501, subdivision 1, is amended to read:
24.10    Subdivision 1. National standards adopted. Except as provided in sections
24.11169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C,
24.12D school buses and multifunction school activity buses used for the transportation of
24.13school children shall meet the requirements of the "bus chassis standards" and "bus body
24.14standards and chassis specifications" in the 2005 2010 edition of the "National School
24.15Transportation Specifications and Procedures" adopted by the National Congress on
24.16School Transportation. Except as provided in section 169.4504, the construction, design,
24.17and equipment of types A, B, C, D school buses and multifunction school activity buses
24.18used for the transportation of students with disabilities also shall meet the requirements of
24.19the "specially equipped school bus standards specifications" in the 2005 2010 National
24.20School Transportation Specifications and Procedures. The "bus chassis standards," "bus
24.21body standards, and chassis specifications" and "specially equipped school bus standards
24.22specifications" sections of the 2005 2010 edition of the "National School Transportation
24.23Specifications and Procedures," adopted by the Fifteenth National Congress on School
24.24Transportation, are incorporated by reference in this chapter.

24.25    Sec. 35. Minnesota Statutes 2010, section 169.4501, subdivision 2, is amended to read:
24.26    Subd. 2. Applicability. (a) The standards adopted in this section and sections
24.27169.4502 and 169.4503, govern the construction, design, equipment, and color of school
24.28buses used for the transportation of school children, when owned or leased and operated
24.29by a school or privately owned or leased and operated under a contract with a school.
24.30Each school, its officers and employees, and each person employed under the contract is
24.31subject to these standards.
24.32    (b) The standards apply to school buses manufactured after December 31, 2007
24.332012. Buses complying with the standards when manufactured need not comply with
24.34standards established later except as specifically provided for by law.
25.1    (c) A school bus manufactured on or before December 31, 2007 2012, must conform
25.2to the Minnesota standards in effect on the date the vehicle was manufactured except as
25.3specifically provided for in law.
25.4    (d) A new bus body may be remounted on a used chassis provided that the remounted
25.5vehicle meets state and federal standards for new buses which are current at the time of the
25.6remounting. Permission must be obtained from the commissioner of public safety before
25.7the remounting is done. A used bus body may not be remounted on a new or used chassis.

25.8    Sec. 36. Minnesota Statutes 2010, section 169.4503, subdivision 5, is amended to read:
25.9    Subd. 5. Colors. Fenderettes may be black. The beltline may be painted yellow
25.10over black or black over yellow. The rub rails shall be black. The area around the lenses
25.11of alternately flashing signal lamps extending outward from the edge of the lamp three
25.12inches, plus or minus one-quarter inch, to the sides and top and at least one inch to the
25.13bottom, shall be black. Visors or hoods, black in color, with a minimum of four inches
25.14may be provided.

25.15    Sec. 37. Minnesota Statutes 2010, section 169.4503, subdivision 20, is amended to
25.16read:
25.17    Subd. 20. Seat and crash barriers. (a) All restraining barriers and passenger seats
25.18shall be covered with a material that has fire retardant or fire block characteristics.
25.19    (b) All seats must have a minimum cushion depth of 15 inches and a seat back
25.20height of at least 20 inches above the seating reference point, and beginning October 21,
25.212009, must also conform to the Federal Motor Vehicle Safety Standard in Code of Federal
25.22Regulations, title 49, section 571.222.

25.23    Sec. 38. Minnesota Statutes 2010, section 169.4503, is amended by adding a
25.24subdivision to read:
25.25    Subd. 28. Auxiliary fans. Additional auxiliary fans are required for school buses
25.26manufactured on or after December 31, 2012, and shall meet the following requirements:
25.27(1) fans for the left and right sides of the windshields shall be placed in a location
25.28where they can be adjusted for maximum effectiveness and where they do not obstruct
25.29vision to any mirror. Type A buses may be equipped with one fan;
25.30(2) fans shall be a minimum of six inches in diameter;
25.31(3) fan blades shall be covered with a protective cage; and
25.32(4) each fan shall be controlled by a separate switch.

26.1    Sec. 39. Minnesota Statutes 2010, section 169.4503, is amended by adding a
26.2subdivision to read:
26.3    Subd. 29. Video/mobile surveillance systems. Camera heads for video/mobile
26.4surveillance may be mounted in the driver compartment area, mid-bus, or on a rear interior
26.5bulkhead in the student passenger area. For buses manufactured or retrofitted with a
26.6surveillance system after December 31, 2012, cameras mounted mid-bus must be parallel
26.7to a seat back, must not have any sharp edges, must not extend outward more than three
26.8inches, and must be located within 24 inches of the top of the side window of the bus.

26.9    Sec. 40. Minnesota Statutes 2010, section 169.4582, subdivision 2, is amended to read:
26.10    Subd. 2. Duty to report; school official. Consistent with the school bus safety
26.11policy under section 123B.91, subdivision 1, the school principal, the school transportation
26.12safety director, or other designated school official shall immediately report to the local
26.13law enforcement agency having jurisdiction where the misbehavior occurred and to the
26.14school superintendent if the reporting school official knows or has reason to believe that
26.15a student has committed a reportable offense on a school bus or in a bus loading or
26.16unloading area. The reporting school official shall issue a report to the commissioner of
26.17public safety concerning the incident on a form developed by the commissioner for that
26.18purpose upon request of the commissioner.

26.19    Sec. 41. Minnesota Statutes 2010, section 169.79, subdivision 6, is amended to read:
26.20    Subd. 6. Other motor vehicles. If the motor vehicle is any kind of motor vehicle
26.21other than those provided for in subdivisions 2 to 4, one plate two plates must be displayed
26.22on. One plate must be displayed at the front and one on the rear of the vehicle and one
26.23at the back. The two plates must either be mounted on the front and rear bumpers of
26.24the vehicle or on the front and back of the vehicle exterior in places designed to hold a
26.25license plate.

26.26    Sec. 42. Minnesota Statutes 2011 Supplement, section 169.86, subdivision 5, is
26.27amended to read:
26.28    Subd. 5. Fees; proceeds deposited; appropriation. The commissioner, with
26.29respect to highways under the commissioner's jurisdiction, may charge a fee for each
26.30permit issued. Unless otherwise specified, all such fees for permits issued by the
26.31commissioner of transportation shall be deposited in the state treasury and credited to
26.32the trunk highway fund. Except for those annual permits for which the permit fees are
26.33specified elsewhere in this chapter, the fees shall be:
27.1    (a) $15 for each single trip permit.
27.2    (b) $36 for each job permit. A job permit may be issued for like loads carried on
27.3a specific route for a period not to exceed two months. "Like loads" means loads of the
27.4same product, weight, and dimension.
27.5    (c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
27.6months. Annual permits may be issued for:
27.7    (1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety
27.8or well-being of the public;
27.9    (2) motor vehicles which travel on interstate highways and carry loads authorized
27.10under subdivision 1a;
27.11    (3) motor vehicles operating with gross weights authorized under section 169.826,
27.12subdivision 1a ;
27.13    (4) special pulpwood vehicles described in section 169.863;
27.14    (5) motor vehicles bearing snowplow blades not exceeding ten feet in width;
27.15    (6) noncommercial transportation of a boat by the owner or user of the boat;
27.16    (7) motor vehicles carrying bales of agricultural products authorized under section
27.17169.862 ; and
27.18(8) special milk-hauling vehicles authorized under section 169.867.
27.19    (d) $120 for an oversize annual permit to be issued for a period not to exceed 12
27.20consecutive months. Annual permits may be issued for:
27.21    (1) mobile cranes;
27.22    (2) construction equipment, machinery, and supplies;
27.23    (3) manufactured homes and manufactured storage buildings;
27.24    (4) implements of husbandry;
27.25    (5) double-deck buses;
27.26    (6) commercial boat hauling and transporting waterfront structures, including, but
27.27not limited to, portable boat docks and boat lifts;
27.28    (7) three-vehicle combinations consisting of two empty, newly manufactured trailers
27.29for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however,
27.30the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer
27.31only while operating on twin-trailer routes designated under section 169.81, subdivision 3,
27.32paragraph (c); and
27.33(8) vehicles operating on that portion of marked Trunk Highway 36 described in
27.34section 169.81, subdivision 3, paragraph (e).
27.35    (e) For vehicles which have axle weights exceeding the weight limitations of
27.36sections 169.823 to 169.829, an additional cost added to the fees listed above. However,
28.1this paragraph applies to any vehicle described in section 168.013, subdivision 3,
28.2paragraph (b), but only when the vehicle exceeds its gross weight allowance set forth in
28.3that paragraph, and then the additional cost is for all weight, including the allowance
28.4weight, in excess of the permitted maximum axle weight. The additional cost is equal
28.5to the product of the distance traveled times the sum of the overweight axle group cost
28.6factors shown in the following chart:

28.7		Overweight Axle Group Cost Factors
28.8	Weight (pounds)		Cost Per Mile For Each Group Of:
28.9 28.10 28.11 28.12 28.13	exceeding weight limitations on axles		Two consecutive axles spaced within 8 feet or less		Three consecutive axles spaced within 9 feet or less		Four consecutive axles spaced within 14 feet or less
28.14	0-2,000		.12		.05		.04
28.15	2,001-4,000		.14		.06		.05
28.16	4,001-6,000		.18		.07		.06
28.17	6,001-8,000		.21		.09		.07
28.18	8,001-10,000		.26		.10		.08
28.19	10,001-12,000		.30		.12		.09
28.20 28.21	12,001-14,000		Not permitted		.14		.11
28.22 28.23	14,001-16,000		Not permitted		.17		.12
28.24 28.25	16,001-18,000		Not permitted		.19		.15
28.26 28.27	18,001-20,000		Not permitted		Not permitted		.16
28.28 28.29	20,001-22,000		Not permitted		Not permitted		.20

28.30The amounts added are rounded to the nearest cent for each axle or axle group. The
28.31additional cost does not apply to paragraph (c), clauses (1) and (3).
28.32For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
28.33fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
28.34in addition to the normal permit fee. Miles must be calculated based on the distance
28.35already traveled in the state plus the distance from the point of detection to a transportation
28.36loading site or unloading site within the state or to the point of exit from the state.
28.37    (f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
28.38or oversize and overweight, mobile cranes; construction equipment, machinery, and
28.39supplies; implements of husbandry; and commercial boat hauling. The fees for the permit
28.40are as follows:

29.1	Gross Weight (pounds) of Vehicle		Annual Permit Fee
29.2	90,000	or less	$200
29.3	90,001	- 100,000	$300
29.4	100,001	- 110,000	$400
29.5	110,001	- 120,000	$500
29.6	120,001	- 130,000	$600
29.7	130,001	- 140,000	$700
29.8	140,001	- 145,000	$800

29.9If the gross weight of the vehicle is more than 145,000 pounds the permit fee is determined
29.10under paragraph (e).
29.11    (g) For vehicles which exceed the width limitations set forth in section 169.80 by
29.12more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a)
29.13when the permit is issued while seasonal load restrictions pursuant to section 169.87 are
29.14in effect.
29.15    (h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
29.16refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on
29.17a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
29.18subdivision 2 , 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000
29.19pounds on a tridem rear axle must limit the gross vehicle weight to not more than 62,000
29.20pounds.
29.21    (i) $300 for a motor vehicle described in section 169.8261. The fee under this
29.22paragraph must be deposited as follows:
29.23    (1) in fiscal years 2005 through 2010:
29.24    (i) (1) the first $50,000 in each fiscal year must be deposited in the trunk highway
29.25fund for costs related to administering the permit program and inspecting and posting
29.26bridges; and
29.27    (ii) (2) all remaining money in each fiscal year must be deposited in a the bridge
29.28inspection and signing account in the special revenue fund as provided under subdivision
29.295a. Money in the account is appropriated to the commissioner for:
29.30    (A) inspection of local bridges and identification of local bridges to be posted,
29.31including contracting with a consultant for some or all of these functions; and
29.32    (B) erection of weight-posting signs on local bridges; and
29.33    (2) in fiscal year 2011 and subsequent years must be deposited in the trunk highway
29.34fund.
29.35    (j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating
29.36under authority of section 169.824, subdivision 2, paragraph (a), clause (2).

30.1    Sec. 43. Minnesota Statutes 2010, section 169.86, is amended by adding a subdivision
30.2to read:
30.3    Subd. 5a. Bridge inspection and signing account; appropriation. (a) A bridge
30.4inspection and signing account is established in the special revenue fund. The account
30.5consists of fees for special permits as specified under this chapter, and any other money
30.6donated, allotted, transferred, or otherwise provided to the account.
30.7    (b) The revenue in the bridge inspection and signing account under this subdivision
30.8is annually appropriated to the commissioner for:
30.9    (1) inspection of local bridges and identification of local bridges to be posted,
30.10including contracting with a consultant for some or all of these functions; and
30.11    (2) erection of weight-posting signs on local bridges.

30.12    Sec. 44. Minnesota Statutes 2010, section 169.865, subdivision 4, is amended to read:
30.13    Subd. 4. Deposit of revenues; appropriation. (a) Revenue from the permits issued
30.14by the commissioner under this section must be deposited:
30.15(1) in fiscal years 2008 through 2011, in the bridge inspection and signing account
30.16in the special revenue fund; and
30.17    (2) in fiscal year 2012 and subsequent years, in the trunk highway fund as provided
30.18under section 169.86, subdivision 5a.
30.19    (b) The revenue in the bridge inspection and signing account under this section is
30.20annually appropriated to the commissioner for:
30.21    (1) inspection of local bridges and identification of local bridges to be posted,
30.22including contracting with a consultant for some or all of these functions; and
30.23    (2) erection of weight-posting signs on local bridges.

30.24    Sec. 45. Minnesota Statutes 2010, section 169.98, subdivision 1, is amended to read:
30.25    Subdivision 1. Colors and markings. (a) Except as provided in subdivisions 2 and
30.262a, all motor vehicles which are primarily used in the enforcement of highway traffic rules
30.27by the State Patrol or for general uniform patrol assignment by any municipal police
30.28department or other law enforcement agency, except conservation officers, shall have
30.29uniform colors and markings as provided in this subdivision. Motor vehicles of:
30.30(1) municipal police departments, including the University of Minnesota Police
30.31Department and park police units, shall be predominantly blue, brown, green, black,
30.32or white;
30.33(2) the State Patrol shall be predominantly maroon; and
30.34(3) the county sheriff's office shall be predominantly brown, black, gold, or white.
31.1(b) The identity of the governmental unit operating the vehicle shall be displayed on
31.2both front door panels and on the rear of the vehicle. The identity may be in the form of
31.3a shield or emblem, or may be the word "police," "sheriff," or the words "State Patrol"
31.4or "conservation officer," as appropriate, with letters not less than 2-1/2 inches high,
31.5one-inch wide and of a three-eighths inch brush stroke. The identity shall be of a color
31.6contrasting with the background color so that the motor vehicle is easily identifiable as
31.7belonging to a specific type of law enforcement agency. Each vehicle shall be marked
31.8with its own identifying number on the rear of the vehicle. The number shall be printed
31.9in the same size and color required pursuant to this subdivision for identifying words
31.10which may be displayed on the vehicle.

31.11    Sec. 46. Minnesota Statutes 2010, section 169.98, subdivision 3, is amended to read:
31.12    Subd. 3. Security guard vehicle. (a) All motor vehicles which are used by security
31.13guards in the course of their employment may have any color other than those specified in
31.14subdivision 1 for law enforcement vehicles. The identity of the security service shall be
31.15displayed on the motor vehicle as required for law enforcement vehicles.
31.16(b) Notwithstanding subdivision 1, paragraph (a), clause (1), a security guard may
31.17continue to use a motor vehicle that is predominantly black in the course of the guard's
31.18employment if the vehicle was being used in this manner before August 1, 2002.
31.19(c) Notwithstanding subdivision 1, paragraph (a), clause (3), a security guard may
31.20continue to use a motor vehicle that is predominantly gold in the course of the guard's
31.21employment if the vehicle was being used in this manner before August 1, 2012.

31.22    Sec. 47. [171.60] MOTORCYCLE ROAD GUARD CERTIFICATE.
31.23    Subdivision 1. Certificate required. No person may perform traffic control as a
31.24motorcycle road guard as provided under chapter 169 without a valid motorcycle road
31.25guard certificate issued by the commissioner.
31.26    Subd. 2. Certification qualifications and standards; fee. Through the Minnesota
31.27Motorcycle Safety Center, the commissioner of public safety shall:
31.28(1) establish qualifications and requirements for a person to obtain a motorcycle road
31.29guard certificate under this section, which must include:
31.30(i) a minimum 18 years of age;
31.31(ii) possession of a valid driver's license; and
31.32(iii) successful completion of a motorcycle road guard certification course;
31.33(2) develop and offer, whether by the Minnesota Motorcycle Safety Center or
31.34authorized agents, a motorcycle road guard certification course; and
32.1(3) establish safety and equipment standards for a person who operates under a
32.2motorcycle road guard certificate, including but not limited to specifying requirements
32.3for a reflective safety vest.
32.4    Subd. 3. Fee. The commissioner of public safety shall assess a fee for each applicant
32.5for a motorcycle road guard certificate, calculated to cover the commissioner's cost of
32.6establishing and administering the program.
32.7    Subd. 4. Penalty. A person who violates any provision of this section is guilty
32.8of a petty misdemeanor.
32.9    Subd. 5. Rulemaking. The commissioner of public safety shall adopt rules to carry
32.10out the provisions of this section. Notwithstanding section 16A.1283, the rules must
32.11specify the fee to be assessed under subdivision 3.
32.12EFFECTIVE DATE.Subdivisions 1 to 4 are effective one year after publication
32.13in the State Register of rules adopted under subdivision 5. Subdivision 5 is effective the
32.14day following final enactment.

32.15    Sec. 48. Minnesota Statutes 2010, section 174.03, is amended by adding a subdivision
32.16to read:
32.17    Subd. 1d. Statewide freight plan. (a) The commissioner of transportation, in
32.18cooperation with the commissioner of the Department of Employment and Economic
32.19Development, shall conduct a freight rail economic development study. The study will
32.20assess the economic impact of freight railroads in the state and identify opportunities to
32.21expand business development and enhance economic competitiveness through improved
32.22utilization of freight rail options. Findings from the study shall be incorporated as an
32.23amendment to the statewide freight and passenger rail plan.
32.24(b) The commissioner of transportation shall provide an interim progress report on
32.25the study by January 15, 2013, and a final report on September 1, 2013, to the chairs
32.26and ranking minority members of the legislative committees with jurisdiction over
32.27transportation policy and finance and over employment and economic development. The
32.28reports shall include any recommended legislative initiatives.
32.29(c) The commissioner of transportation may expend up to $216,000 in fiscal year
32.302013 under section 222.50, subdivision 7, to pay the costs of this study and report.
32.31EFFECTIVE DATE.This section is effective the day following final enactment.

32.32    Sec. 49. [174.40] SAFE ROUTES TO SCHOOL PROGRAM.
33.1    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
33.2have the meanings given them.
33.3(b) "Bond eligible cost" means expenditures under this section for acquisition of
33.4land or permanent easements, predesign, design, preliminary and final engineering,
33.5environmental analysis, construction, and reconstruction of publicly owned infrastructure
33.6in this state with a useful life of at least ten years that provides for nonmotorized
33.7transportation to and from a school; preparation of land for which a route to school
33.8is established, including demolition of structures and remediation of any hazardous
33.9conditions on the land; and the unpaid principal on debt issued by a political subdivision
33.10for a safe routes to school project.
33.11(c) "Federal program" means the safe routes to school program under Title I, section
33.121404 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy
33.13for Users (SAFETEA-LU) of 2005, Public Law 109-59.
33.14(d) "School" means a school, as defined in section 120A.22, subdivisions 4,
33.15excluding a home school.
33.16    Subd. 2. Program creation. (a) A safe routes to school program is established
33.17to provide assistance in capital investments for safe and appealing nonmotorized
33.18transportation to and from a school. The commissioner shall develop and implement the
33.19safe routes to school program as provided in this section. Financial assistance under
33.20this section is to supplement or replace aid for infrastructure projects under the federal
33.21program.
33.22(b) The commissioner may provide grants or other financial assistance for a safe
33.23routes to school project at the commissioner's discretion, subject to the requirements
33.24of this section.
33.25    Subd. 3. Safe routes to school accounts. (a) A safe routes to school account is
33.26established in the bond proceeds fund. The account consists of state bond proceeds
33.27appropriated to the commissioner. Money in the account may only be expended on
33.28bond-eligible costs of a project receiving financial assistance as provided under this
33.29section. All uses of funds from the account must be for publicly owned property.
33.30(b) A safe routes to school account is established in the general fund. The account
33.31consists of funds as provided by law, and any other money donated, allotted, transferred,
33.32or otherwise provided to the account. Money in the account may only be expended on a
33.33project receiving financial assistance as provided under this section.
33.34    Subd. 4. State general obligation bond funds. Minnesota Constitution, article XI,
33.35section 5, clause (a), requires that state general obligation bonds be issued to finance only
33.36the acquisition or betterment of public land, buildings, and other public improvements
34.1of a capital nature. The legislature has determined that many school transportation
34.2infrastructure projects will constitute betterments and capital improvements within the
34.3meaning of the Minnesota Constitution and capital expenditures under generally accepted
34.4accounting principles, and will be financed more efficiently and economically under this
34.5section than by direct appropriations for specific projects.
34.6    Subd. 5. Program administration. (a) The commissioner shall establish general
34.7program requirements and a competitive process for financial assistance, including but
34.8not limited to eligibility requirements for grant recipients and projects; procedures for
34.9solicitation of grants; application requirements; procedures for payment of financial
34.10assistance awards; and a schedule for application, evaluation, and award of financial
34.11assistance.
34.12(b) An application must include:
34.13(1) a detailed and specific description of the project;
34.14(2) an estimate, along with necessary supporting evidence, of the total costs for the
34.15project and the allocation of identified and proposed funding sources for the project;
34.16(3) an assessment of the need for and benefits of the project;
34.17(4) a resolution adopted by the governing body of the school for which a safe routes
34.18to school grant is requested, certifying that: (i) the governing body of the school supports
34.19the project; and (ii) funds, if any, required to be supplied by the school to complete the
34.20project are available and committed;
34.21(5) a timeline indicating the major milestones of the project and their anticipated
34.22completion dates; and
34.23(6) any additional information or material the commissioner prescribes.
34.24(c) The commissioner shall make reasonable efforts to (1) publicize each solicitation
34.25for applications among all eligible recipients, and (2) provide technical and informational
34.26assistance in creating and submitting applications.
34.27(d) By January 1, 2013, the commissioner of transportation shall publish and
34.28maintain a manual on the safe routes to school program that assists applicants for and
34.29recipients of financial assistance. The manual must include identification of eligibility
34.30and general program requirements, explanation of the application process, and review of
34.31criteria for evaluation of projects.
34.32    Subd. 6. Evaluation criteria. The commissioner shall establish criteria for
34.33evaluation of applications and selection of projects. The criteria must include:
34.34(1) establishment or capital improvement of transportation infrastructure that
34.35improves safety and encourages nonmotorized transportation to and from a school;
35.1(2) compliance with all applicable requirements for capital infrastructure projects
35.2established by the Federal Highway Administration, U.S. Department of Transportation,
35.3for the federal program; and
35.4(3) other components as determined by the commissioner.
35.5    Subd. 7. Grant cancellation. If, five years after execution of a grant agreement,
35.6the commissioner determines that the grantee has not proceeded in a timely manner
35.7with implementation of the project funded, the commissioner must cancel the grant
35.8and the grantee must repay to the commissioner all grant money paid to the grantee.
35.9Section 16A.642 applies to any appropriations made from the bond proceeds fund to the
35.10commissioner under this section that have not been awarded as financial assistance.
35.11    Subd. 8. Legislative report. By November 1 annually, the commissioner shall
35.12submit a report on the safe routes to school program to the chairs and ranking minority
35.13members of the house of representatives and senate committees with jurisdiction over
35.14transportation policy and finance. The report must at a minimum:
35.15(1) summarize program implementation;
35.16(2) provide an overview of grant evaluation and criteria used in project selection;
35.17(3) provide a brief description of each project funded in the previous fiscal year,
35.18including the amount of money provided from each safe routes to school account under
35.19this section and the amount provided under the federal program;
35.20(4) summarize the status of the federal program or successor legislation; and
35.21(5) identify any recommendations for legislative changes, including proposals to
35.22improve program effectiveness.
35.23EFFECTIVE DATE.This section is effective the day following final enactment.

35.24    Sec. 50. Minnesota Statutes 2010, section 299D.09, is amended to read:
35.25299D.09 ESCORT SERVICE; APPROPRIATION; RECEIPTS.
35.26    Fees charged for escort services provided by the State Patrol are annually
35.27appropriated to the commissioner of public safety to administer and provide these services.
35.28    The fees fee charged for services provided by the State Patrol with a vehicle are
35.29$73.60 is $79.28 an hour in fiscal year 2008 and $75.76 an hour in fiscal year 2009 and
35.30thereafter. The fees fee charged for services provided without a vehicle are $54 is $59.28
35.31an hour in fiscal year 2008 and $56.16 an hour in fiscal year 2009 and thereafter.
35.32    The fees charged for State Patrol flight services are $140 an hour for a fixed wing
35.33aircraft, $490 an hour for a helicopter, and $600 an hour for the Queen Air in fiscal year
36.12012, and $139.64 an hour for a fixed wing aircraft, $560.83 an hour for a helicopter, and
36.2$454.84 an hour for the Queen Air in fiscal year 2013 and in fiscal year 2014.
36.3EFFECTIVE DATE.This section is effective July 1, 2012.

36.4    Sec. 51. Minnesota Statutes 2010, section 325F.6641, is amended to read:
36.5325F.6641 DISCLOSURE OF MOTOR VEHICLE DAMAGE.
36.6    Subdivision 1. Damage. (a) If a motor late-model vehicle, as defined in section
36.7168A.01, subdivision 8a, has sustained damage by collision or other occurrence which
36.8exceeds 70 80 percent of its actual cash value immediately prior to sustaining damage, the
36.9seller must disclose that fact to the buyer, if the seller has actual knowledge of the damage.
36.10The amount of damage is determined by the retail cost of repairing the vehicle based on a
36.11complete written retail repair estimate or invoice, exclusive of the actual cost incurred to
36.12repair, replace, or reinstall inflatable safety restraints and other vehicle components that
36.13must be replaced due to the deployment of the inflatable safety restraints.
36.14(b) The disclosure required under this subdivision must be made in writing on the
36.15application for title and registration or other transfer document, in a manner prescribed
36.16by the registrar of motor vehicles. The registrar shall revise the certificate of title form,
36.17including the assignment by seller (transferor) and reassignment by licensed dealer
36.18sections of the form, the separate application for title forms, and other transfer documents
36.19to accommodate this disclosure. If the seller is a motor vehicle dealer licensed pursuant to
36.20section 168.27, the disclosure required by this section must be made orally by the dealer to
36.21the prospective buyer in the course of the sales presentation.
36.22(c) Upon transfer and application for title to a vehicle covered by this subdivision,
36.23the registrar shall record the term "rebuilt" on the first Minnesota certificate of title and all
36.24subsequent Minnesota certificates of title used for that vehicle.
36.25    Subd. 2. Form of disclosure. The disclosure required in this section must be made
36.26in substantially the following form: "To the best of my knowledge, this vehicle has .....
36.27has not ..... sustained damage, exclusive of any costs to repair, replace, or reinstall air bags
36.28and other components that were replaced due to deployment of air bags, in excess of
36.2970 80 percent actual cash value."

36.30    Sec. 52. Minnesota Statutes 2010, section 325F.6644, subdivision 1, is amended to
36.31read:
36.32    Subdivision 1. Damage disclosure. Section 325F.6641 does not apply to vehicles
36.33that are six years old or older as calculated from the first day of January of the designated
37.1model year or to commercial motor vehicles with a gross vehicle weight rating of 16,000
37.2pounds or more or to motorcycles.

37.3    Sec. 53. Minnesota Statutes 2010, section 325F.6644, subdivision 2, is amended to
37.4read:
37.5    Subd. 2. Title branding. Section 325F.6642 does not apply to commercial motor
37.6vehicles with a gross vehicle weight rating of 16,000 pounds or more or to motorcycles,
37.7other than reconstructed vehicles, as defined in section 168A.01, subdivision 16, and
37.8restored pioneer vehicles, as defined in section 168A.01, subdivision 16a.

37.9    Sec. 54. Minnesota Statutes 2010, section 473.408, is amended by adding a subdivision
37.10to read:
37.11    Subd. 5a. Farebox recovery adjustment. (a) The council shall amend its fare
37.12policies under this section, to increase the fare beginning January 1, 2013, by 25 cents
37.13during peak hours and nonpeak hours for passengers who are not provided a discounted
37.14fare, for:
37.15(1) regular route and express bus service;
37.16(2) light rail transit service;
37.17(3) commuter rail service, including during weekdays and weekends; and
37.18(4) downtown zone circulation service.
37.19(b) This subdivision does not apply to each type of discounted fare service,
37.20including, but not limited to, service for persons with disabilities; Metro Mobility
37.21paratransit service; or Transit Link shared-ride service.
37.22EFFECTIVE DATE.This section is effective the day following final enactment.

37.23    Sec. 55. Laws 2009, chapter 36, article 3, section 28, is amended to read:
37.24    Sec. 28. DESIGN-BUILD PROJECT SELECTION COUNCIL LOCAL
37.25PROJECTS.
37.26    Subdivision 1. Establishment of council. A Design-Build Project Selection
37.27Council is established to select, evaluate, and support county and municipal transportation
37.28projects on the state-aid system that are conducive to use of the design-build method of
37.29contracting and to report to the legislature.
37.30    Subd. 1a. Selection authority. The commissioner of transportation or the
37.31commissioner's designee from the Department of Transportation State Aid for Local
37.32Transportation Division shall select, evaluate, and support county and municipal
38.1transportation projects on the state-aid system that are conducive to use of the design-build
38.2method of contracting.
38.3    Subd. 2. Duties of council commissioner. In order to accomplish these purposes,
38.4the council commissioner shall:
38.5(1) review applications for participation received by the commissioner from counties
38.6and cities;
38.7(2) select projects for participation in the pilot program a maximum of 15 projects
38.8on the state-aid system, no more than ten of which may be on the county state-aid highway
38.9system, and no more than ten of which may be on the municipal state-aid street system
38.10each calendar year;
38.11(3) determine that the use of design-build in the selected projects would serve the
38.12public interest, after considering, at a minimum:
38.13(i) the extent to which the municipality can adequately define the project
38.14requirements in a proposed scope of the design and construction desired;
38.15(ii) the time constraints for delivery of the project;
38.16(iii) the capability of potential contractors with the design-build method of project
38.17delivery;
38.18(iv) the suitability of the project for use of the design-build method of project
38.19delivery with respect to time, schedule, costs, and quality factors;
38.20(v) the capability of the municipality to manage the project, including the
38.21employment of experienced personnel or outside consultants; and
38.22(vi) the original character of the product or the services; and
38.23(4) periodically review and evaluate the use of design-build in the selected projects;
38.24and
38.25(5) assist the commissioner in preparing a report to the legislature at the conclusion
38.26of the pilot program.
38.27    Subd. 3. Membership. (a) The council is composed of the following members:
38.28(1) two contractors, at least one of whom represents a small contracting firm,
38.29selected by the Associated General Contractors, Minnesota chapter;
38.30(2) two project designers selected by the American Council of Engineering
38.31Companies, Minnesota chapter;
38.32(3) one representative of a metropolitan area county selected by the Association
38.33of Minnesota Counties;
38.34(4) one representative of a greater Minnesota county selected by the Association
38.35of Minnesota Counties;
39.1(5) one representative of a metropolitan area city selected by the League of
39.2Minnesota Cities;
39.3(6) one representative of a greater Minnesota city selected by the League of
39.4Minnesota Cities; and
39.5(7) the commissioner of transportation or a designee from the Minnesota Department
39.6of Transportation Division of State Aid for Local Transportation.
39.7(b) All appointments required by paragraph (a) must be completed by August
39.81, 2009.
39.9(c) The commissioner or the commissioner's designee shall convene the first meeting
39.10of the council within two weeks after the members have been appointed to the council and
39.11shall serve as chair of the council.
39.12    Subd. 4. Report to legislature. Annually, by January 15, the council shall submit
39.13a report to the chairs and ranking minority members of the legislative committees with
39.14jurisdiction over transportation budget and policy, and to the legislature as provided under
39.15Minnesota Statutes, section 15.059. The report must summarize the design-build pilot
39.16program selection process, including the number of applications considered; the proposal
39.17process for each project that was selected; the contracting process for each project that was
39.18completed; and project costs. The report must evaluate the process and results applying
39.19the performance-based measures with which the commissioner evaluates trunk highway
39.20design-build projects. The report must include any recommendations for future legislation.
39.21EFFECTIVE DATE.This section is effective the day following final enactment
39.22and expires upon completion of nine design-build projects.

39.23    Sec. 56. Laws 2009, chapter 36, article 3, section 28, the effective date, is amended to
39.24read:
39.25EFFECTIVE DATE.This section is effective the day following final enactment
39.26and expires on October 1, 2012, or upon completion of nine design-build projects under
39.27this pilot program, whichever occurs first.

39.28    Sec. 57. Laws 2009, chapter 36, article 3, section 29, is amended to read:
39.29    Sec. 29. DESIGN-BUILD CONTRACTING PILOT PROGRAM.
39.30    Subdivision 1. Definitions. The following terms have the meanings given:
39.31(1) "commissioner" means the commissioner of transportation;
39.32(2) "municipality" means a county or statutory or home rule charter city;
40.1(3) "design-build contract" means a single contract between a municipality and a
40.2design-build company or firm to furnish the architectural or engineering and related design
40.3services as well as the labor, material, supplies, equipment, and construction services for
40.4the transportation project;
40.5(4) "design-build firm" means a proprietorship, partnership, limited liability
40.6partnership, joint venture, corporation, any type of limited liability company, professional
40.7corporation, or any legal entity;
40.8(5) "design professional" means a person who holds a license under Minnesota
40.9Statutes, chapter 326B, that is required to be registered under Minnesota law;
40.10(6) "design-build transportation project" means the procurement of both the design
40.11and construction of a transportation project in a single contract with a company or
40.12companies capable of providing the necessary engineering services and construction;
40.13(7) "design-builder" means the design-build firm that proposes to design and build a
40.14transportation project governed by the procedures of this section;
40.15(8) "request for proposals" or "RFP" means the document by which the municipality
40.16solicits proposals from qualified design-build firms to design and construct the
40.17transportation project;
40.18(9) "request for qualifications" or "RFQ" means a document to qualify potential
40.19design-build firms; and
40.20(10) "responsive proposal" means a technical proposal of which no major component
40.21(i) contradicts the goals of the project, (ii) materially violates an RFP requirement so as
40.22to give the proposer a competitive advantage, or (iii) places conditions on a proposal
40.23inconsistent with the requirements of the RFP.
40.24    Subd. 2. Establishment of pilot the program. (a) The commissioner of
40.25transportation shall conduct a design-build contracting pilot program to select local
40.26transportation projects for participation in the program, to conduct information sessions
40.27for engineers and contractors, to support and evaluate the use of the design-build method
40.28of contracting by counties and statutory and home rule charter cities in constructing,
40.29improving, and maintaining streets and highways on the state-aid system, and to report to
40.30the legislature.
40.31(b) The commissioner must concur in the RFQ and RFP prior to solicitation.
40.32(c) The selection of design-build projects under the pilot program must be as made
40.33by the Design-Build Project Selection Council established commissioner as provided in
40.34section 28.
40.35    Subd. 3. Licensing requirements. (a) Each design-builder shall employ, or have
40.36as a partner, member, officer, coventurer, or subcontractor, a person duly licensed and
41.1registered to provide the design services required to complete the project and do business
41.2in the state, including the provision of sureties of sufficient amount to protect the interests
41.3of the awarding municipality.
41.4(b) A design-builder may enter into a contract to provide professional or construction
41.5services for a project that the design-builder is not licensed, registered, or qualified to
41.6perform, so long as the design-builder provides those services through subcontractors with
41.7duly licensed, registered, or otherwise qualified individuals in accordance with Minnesota
41.8Statutes, sections 161.3410 to 161.3428.
41.9(c) Nothing in this section authorizing design-build contracts is intended to limit or
41.10eliminate the responsibility or liability owed by a professional on a design-build project to
41.11the state, municipality, or other third party under existing law.
41.12(d) The design service portion of a design-build contract must be considered a
41.13service and not a product.
41.14    Subd. 4. Information session for municipal engineer. After a project is selected
41.15for participation in the design-build contracting pilot program, the commissioner or the
41.16commissioner's designee with design-build experience shall conduct an information
41.17session for the municipality's engineer for each selected project, in which issues unique
41.18to design-build must be discussed, including, but not limited to, writing an RFP, project
41.19oversight requirements, assessing risk, and communication with the design-build firm.
41.20After participation in the information session, the municipality's engineer is qualified to
41.21post the selected project, along with any future design-build project RFP in the pilot
41.22program.
41.23    Subd. 5. Technical Review Committee. During the phase one RFQ and before
41.24solicitation, the municipality shall appoint a Technical Review Committee of at least
41.25five individuals. The Technical Review Committee must include an individual whose
41.26name and qualifications are submitted to the municipality by the Minnesota chapter of
41.27the Associated General Contractors, after consultation with other commercial contractor
41.28associations in the state. Members of the Technical Review Committee who are not state
41.29employees are subject to the Minnesota Government Data Practices Act and Minnesota
41.30Statutes, section 16C.06, to the same extent that state agencies are subject to those
41.31provisions. A Technical Review Committee member may not participate in the review or
41.32discussion of responses to the RFQ or RFP when a design-build firm in which the member
41.33has a financial interest has responded to the RFQ or RFP. "Financial interest" includes,
41.34but is not limited to, being or serving as an owner, employee, partner, limited liability
41.35partner, shareholder, joint venturer, family member, officer, or director of a design-build
41.36firm responding to an RFQ or RFP for a specific project, or having any other economic
42.1interest in that design-build firm. The members of the Technical Review Committee must
42.2be treated as municipal employees in the event of litigation resulting from any action
42.3arising out of their service on the committee.
42.4    Subd. 6. Phase one; design-build RFQ. The municipality shall prepare an RFQ,
42.5which must include the following:
42.6(1) the minimum qualifications of design-builders necessary to meet the requirements
42.7for acceptance;
42.8(2) a scope of work statement and schedule;
42.9(3) documents defining the project requirements;
42.10(4) the form of contract to be awarded;
42.11(5) the weighted selection criteria for compiling a short list and the number of firms
42.12to be included in the short list, which must be at least two but not more than five;
42.13(6) a description of the request for proposals (RFP) requirements;
42.14(7) the maximum time allowed for design and construction;
42.15(8) the municipality's estimated cost of design and construction;
42.16(9) requirements for construction experience, design experience, financial,
42.17personnel, and equipment resources available from potential design-builders for the
42.18project and experience in other design-build transportation projects or similar projects,
42.19provided that these requirements may not unduly restrict competition; and
42.20(10) a statement that "past performance" or "experience" or other criteria used in the
42.21RFQ evaluation process does not include the exercise or assertion of a person's legal rights.
42.22    Subd. 7. Information session for prospective design-build firms. After a
42.23design-build project is advertised, any prospective design-build firm shall attend a
42.24design-build information session conducted by the commissioner or the commissioner's
42.25designee with design-build experience. The information must include information about
42.26design-build contracts, including, but not limited to, communication with partner firms,
42.27project oversight requirements, assessing risk, and communication with the municipality's
42.28engineer. After participation in the information session, the design-build firm is eligible to
42.29bid on the design-build project and any future design-build pilot program projects.
42.30    Subd. 8. Evaluation. The selection team shall evaluate the design-build
42.31qualifications of responding firms and shall compile a short list of no more than five
42.32most highly qualified firms in accordance with qualifications criteria described in the
42.33RFQ. If only one design-build firm responds to the RFQ or remains on the short list, the
42.34municipality may readvertise or cancel the project as the municipality deems necessary.
42.35    Subd. 9. Phase two; design-build RFP. The municipality shall prepare an RFP,
42.36which must include:
43.1(1) the scope of work, including (i) performance and technical requirements, (ii)
43.2conceptual design, (iii) specifications consistent with state standards and specifications,
43.3and (iv) functional and operational elements for the delivery of the completed project, all
43.4of which must be prepared by a registered or licensed professional engineer;
43.5(2) copies of the contract documents that the successful proposer will be expected to
43.6sign;
43.7(3) the maximum time allowable for design and construction;
43.8(4) the road authority's estimated cost of design and construction;
43.9(5) the requirement that a submitted proposal be segmented into two parts, a
43.10technical proposal and a price proposal;
43.11(6) the requirement that each proposal be in a separately sealed, clearly identified
43.12package and include the date and time of the submittal deadline;
43.13(7) the requirement that the technical proposal include a critical path method,
43.14bar schedule of the work to be performed, or similar schematic; preliminary design
43.15plans and specifications; technical reports; calculations; permit requirements; applicable
43.16development fees; and other data requested in the RFP;
43.17(8) the requirement that the price proposal contain all design, construction,
43.18engineering, inspection, and construction costs of the proposed project;
43.19(9) the requirement that surety be submitted equal to the total amount of the proposal;
43.20(10) a description of the qualifications required of the design-builder and the
43.21selection criteria, including the weight of each criterion and subcriterion;
43.22(11) the date, time, and location of the public opening of the sealed price proposals;
43.23(12) the amount of, and eligibility for, a stipulated fee;
43.24(13) other information relevant to the project; and
43.25(14) a statement that "past performance," "experience," or other criteria used in the
43.26RFP evaluation process does not include the exercise or assertion of a person's legal rights.
43.27    Subd. 10. Design-build award; computation; announcement. A design-build
43.28contract shall be awarded as follows:
43.29(a) The Technical Review Committee shall score the technical proposals of the
43.30proposers selected under subdivision 8 using the selection criteria in the RFP. The
43.31Technical Review Committee shall then submit a technical proposal score for each
43.32design-builder to the municipality. The Technical Review Committee shall reject any
43.33nonresponsive proposal, including those unable to provide sufficient surety to guarantee
43.34project completion. The municipality shall review the technical proposal scores.
44.1(b) The commissioner or the commissioner's designee shall review the technical
44.2proposal scores. The commissioner shall submit the final technical proposal scores to the
44.3municipality.
44.4(c) The municipality shall announce the technical proposal score for each
44.5design-builder and shall publicly open the sealed price proposals and shall divide each
44.6design-builder's price by the technical score that the commissioner has given to it to obtain
44.7an adjusted score. The design-builder selected must be that responsive and responsible
44.8design-builder whose adjusted score is the lowest.
44.9(d) If a time factor is included with the selection criteria in the RFP package, the
44.10municipality may use a value of the time factor established by the municipality as a
44.11criterion in the RFP.
44.12(e) Unless all proposals are rejected, the municipality shall award the contract
44.13to the responsive and responsible design-builder with the lowest adjusted score. The
44.14municipality shall reserve the right to reject all proposals.
44.15(f) The municipality shall award a stipulated fee not less than two-tenths of one
44.16percent of the municipality's estimated cost of design and construction to each short-listed,
44.17responsible proposer who provides a responsive but unsuccessful proposal. If the
44.18municipality does not award a contract, all short-listed proposers must receive the
44.19stipulated fee. If the municipality cancels the contract before reviewing the technical
44.20proposals, the municipality shall award each design-builder on the short list a stipulated
44.21fee of not less than two-tenths of one percent of the municipality's estimated cost of
44.22design and construction. The municipality shall pay the stipulated fee to each proposer
44.23within 90 days after the award of the contract or the decision not to award a contract.
44.24In consideration for paying the stipulated fee, the municipality may use any ideas or
44.25information contained in the proposals in connection with any contract awarded for the
44.26project or in connection with a subsequent procurement, without any obligation to pay
44.27any additional compensation to the unsuccessful proposers. Notwithstanding the other
44.28provisions of this subdivision, an unsuccessful short-list proposer may elect to waive
44.29the stipulated fee. If an unsuccessful short-list proposer elects to waive the stipulated
44.30fee, the municipality may not use ideas and information contained in that proposer's
44.31proposal. Upon the request of the municipality, a proposer who waived a stipulated fee
44.32may withdraw the waiver, in which case the municipality shall pay the stipulated fee to the
44.33proposer and thereafter may use ideas and information in the proposer's proposal.
44.34    (g) The municipality shall not limit the ability of design-builders that have submitted
44.35proposals to protest a contemplated or actual award by the commissioner by, among
44.36other things, unreasonably restricting the time to protest; restricting the right to seek
45.1judicial review of the commissioner's actions; attempting to change the judicial standard
45.2of review; or requiring the protestor to pay attorney fees for an unsuccessful, nonfrivolous
45.3protest. Unless all design-builders that have submitted proposals agree to execution of
45.4a contract for the project without a waiting period beforehand, the municipality shall
45.5wait at least seven days after both the award of the project and public disclosure of the
45.6Technical Review Committee's scoring data and the successful proposal before executing
45.7a contract for the project.
45.8    Subd. 11. Low-bid design-build process. (a) The municipality may also use
45.9low-bid, design-build procedures to award a design-build contract where the scope of
45.10the work can be clearly defined.
45.11(b) Low-bid design-build projects may require an RFQ and short-listing, and must
45.12require an RFP.
45.13(c) Submitted proposals under this subdivision must include separately a technical
45.14proposal and a price proposal. The low-bid, design-build procedures must follow a
45.15two-step process for review of the responses to the RFP as follows:
45.16(1) the first step is the review of the technical proposal by the Technical Review
45.17Committee as provided in subdivision 5. The Technical Review Committee must open
45.18the technical proposal first and must determine if it complies with the requirements of the
45.19RFP and is responsive. The Technical Review Committee may not perform any ranking
45.20or scoring of the technical proposals; and
45.21(2) the second step is the determination of the low bidder based on the price
45.22proposal. The municipality may not open the price proposal until the review of the
45.23technical proposal is complete.
45.24(d) The contract award under low-bid, design-build procedures must be made to the
45.25proposer whose sealed bid is responsive to the technical requirements as determined by
45.26the Technical Review Committee and that is also the lowest bid.
45.27(e) A stipulated fee may be paid for unsuccessful bids on low-bid, design-build
45.28projects only when the municipality has required an RFQ and short-listed the most highly
45.29qualified responsive bidders.
45.30EFFECTIVE DATE.This section is effective the day following final enactment
45.31and expires upon completion of nine design-build projects.

45.32    Sec. 58. Laws 2009, chapter 36, article 3, section 29, the effective date, is amended to
45.33read:
46.1EFFECTIVE DATE.This section is effective the day following final enactment
46.2and expires on October 1, 2012, or upon completion of nine design-build projects under
46.3this pilot program, whichever occurs first.

46.4    Sec. 59. PUBLIC-PRIVATE PARTNERSHIP PILOT PROGRAM.
46.5(a) The commissioner of transportation is authorized to consider and utilize
46.6public-private partnership procurement methods for up to three pilot projects if objective
46.7analysis demonstrates that it provides better long-term value for the state than traditional
46.8procurement methods.
46.9(b) Notwithstanding Minnesota Statutes, section 160.845, 160.98, or any other law
46.10to the contrary, the commissioner may consider for use in the pilot program any existing
46.11public-private partnership mechanism or any proposed mechanism that proves the best
46.12available option for the state. Mechanisms the commissioner may consider include, but
46.13are not limited to, toll facilities, BOT facilities, or BTO facilities. For the purposes of this
46.14paragraph, toll facilities, BOT facilities, and BTO facilities have the meanings given
46.15under section 160.84.
46.16(c) Among the projects the commissioner may consider is the construction of the
46.17Interstate 94/US Highway 10 River Crossing near marked Minnesota Trunk Highway 24.

46.18    Sec. 60. PILOT PROGRAM RESTRICTIONS.
46.19(a) The commissioner may not receive, consider, evaluate, or accept unsolicited
46.20proposals for a public-private initiative.
46.21(b) The commissioner shall select a private entity or entities for a public-private
46.22partnership on a competitive basis to the maximum extent possible.
46.23(c) When entering into a public-private partnership, the commissioner may not enter
46.24into any noncompete agreement that inhibits the state's ability to address ongoing or
46.25future infrastructure needs.
46.26(d) If the commissioner enters into a public-private partnership agreement that
46.27includes a temporary transfer of ownership or control of a road, bridge, or other
46.28infrastructure investment to the private entity, the agreement must include a provision
46.29requiring the return of the road, bridge, or other infrastructure investment to the state
46.30after a specified period of time.

46.31    Sec. 61. CONSIDERATIONS IN SELECTING PRIVATE ENTITY.
46.32In soliciting, evaluating, and selecting a private entity with which to enter into a
46.33public-private project, the commissioner must consider:
47.1(1) the ability of the proposed project to improve safety, reduce congestion, increase
47.2capacity, and promote economic growth;
47.3(2) the proposed cost of and financial plan for the project;
47.4(3) the general reputation, qualifications, industry experience, and financial capacity
47.5of the private entity;
47.6(4) the project's proposed design, operation, and feasibility;
47.7(5) comments from local citizens and affected jurisdictions;
47.8(6) benefits to the public;
47.9(7) the safety record of the private entity; and
47.10(8) any other criteria the commissioner deems appropriate.

47.11    Sec. 62. PUBLIC-PRIVATE AGREEMENT.
47.12(a) A public-private agreement between the commissioner and a private entity shall,
47.13at a minimum, specify:
47.14(1) the planning, acquisition, financing, development, design, construction,
47.15reconstruction, replacement, improvement, maintenance, management, repair, leasing, or
47.16operation of the project;
47.17(2) the term of the public-private agreement;
47.18(3) the type of property interest, if any, that the private entity will have in the project;
47.19(4) a description of the actions the commissioner may take to ensure proper
47.20maintenance of the project;
47.21(5) whether user fees will be collected on the project and the basis by which the
47.22user fees shall be determined and modified;
47.23(6) compliance with applicable federal, state, and local laws;
47.24(7) grounds for termination of the public-private agreement by the commissioner; and
47.25(8) procedures for amendment of the agreement.
47.26(b) A public-private agreement between the commissioner and a private entity
47.27may provide for:
47.28(1) review and approval by the commissioner of the private entity's plans for the
47.29development and operation of the project;
47.30(2) inspection by the commissioner of construction and improvements to the project;
47.31(3) maintenance by the private entity of a liability insurance policy;
47.32(4) filing of appropriate financial statements by the private entity on a periodic basis;
47.33(5) filing of traffic reports by the private entity on a periodic basis;
47.34(6) financing obligations of the commissioner and the private entity;
47.35(7) apportionment of expenses between the commissioner and the private entity;
48.1(8) the rights and remedies available in the event of a default or delay;
48.2(9) the rights and duties of the private entity, the commissioner, and other state or
48.3local governmental entities with respect to the use of the project;
48.4(10) the terms and conditions of indemnification of the private entity by the
48.5commissioner;
48.6(11) assignment, subcontracting, or other delegations of responsibilities of the
48.7private entity or commissioner under agreement to third parties, including other private
48.8entities or state agencies;
48.9(12) if applicable, sale or lease to the private entity of private property related to
48.10the project;
48.11(13) traffic enforcement and other policing issues; and
48.12(14) any other terms and conditions the commissioner deems appropriate.

48.13    Sec. 63. FUNDING FROM FEDERAL GOVERNMENT.
48.14(a) The commissioner may accept from the United States or any of its agencies
48.15funds that are available to the state for carrying out the pilot program, whether the funds
48.16are available by grant, loan, or other financial assistance.
48.17(b) The commissioner may enter into agreements or other arrangements with the
48.18United States or any of its agencies as necessary for carrying out the pilot program.
48.19(c) The commissioner may combine federal, state, local, and private funds to finance
48.20a public-private partnership pilot project.

48.21    Sec. 64. REPORTING ON PUBLIC-PRIVATE PILOT PROGRAM.
48.22By August 1, 2014, and annually by August 1 thereafter, the commissioner shall
48.23submit to the chairs and ranking minority members of the house of representatives and
48.24senate committees having jurisdiction over transportation policy and finance a listing of
48.25all agreements executed under the pilot program authority. The listing must identify
48.26each agreement, the contracting entities, contract amount and duration, any repayment
48.27requirements, and provide an update on the project's progress. The listing may be
48.28submitted electronically and is subject to Minnesota Statutes, section 3.195, subdivision 1.

48.29    Sec. 65. REPORTS ON USE OF CONSTRUCTION MANAGER/GENERAL
48.30CONTRACTOR METHOD.
48.31    Subdivision 1. Submission of reports. The commissioner shall report on experience
48.32with and evaluation of the construction manager/general contractor method of contracting
48.33authorized in Minnesota Statutes, sections 161.3207 to 161.3209. The reports must be
49.1submitted to the chairs and ranking minority members of the legislative committees with
49.2jurisdiction over transportation policy or transportation finance and in compliance with
49.3Minnesota Statutes, sections 3.195 and 3.197. An interim report must be submitted
49.4no later than 12 months following the commissioner's acceptance of five construction
49.5manager/general contractor contracts. A final report must be submitted no later than 12
49.6months following the commissioner's acceptance of ten construction manager/general
49.7contractor contracts.
49.8    Subd. 2. Content of reports. The reports must include: (1) a description of
49.9circumstances of any projects as to which construction manager/general contractor
49.10requests for qualifications or requests for proposals were solicited, followed by a
49.11cancellation of the solicitation; (2) a description of projects as to which construction
49.12manager/general contractor method was utilized; (3) a comparison of project cost
49.13estimates with final project costs, if available; and (4) evaluation of the construction
49.14manager/general contractor method of procurement with respect to implications for
49.15project cost, use of innovative techniques, completion time, and obtaining maximum
49.16value. The final report must also include recommendations as to continued use of the
49.17program and desired modifications to the program, and recommended legislation to
49.18continue, discontinue, or modify the program.
49.19EFFECTIVE DATE.This section is effective the day following final enactment
49.20and expires one year following the acceptance of ten construction manager/general
49.21contractor contracts.

49.22    Sec. 66. MUNICIPAL STATE-AID STREET 2013 ALLOCATION.
49.23(a) Notwithstanding Minnesota Statutes, section 162.13, subdivision 1, the
49.24commissioner of transportation shall allocate the apportionment sum available in the
49.25municipal state-aid street fund, following the deductions under Minnesota Statutes, section
49.26162.12, as provided in this section.
49.27(b) The commissioner shall identify a remuneration sum for each city that:
49.28(1) qualifies for municipal state-aid street funds under Minnesota Statutes, section
49.29162.09, subdivision 4a; and
49.30(2) was not allocated municipal state-aid street funds for calendar year 2012.
49.31(c) The remuneration sum for each city equals the amount the city received under
49.32the allocation of municipal state-aid street funds for calendar year 2011.
49.33(d) For the calendar year 2013 allocation only, the commissioner shall:
50.1(1) allocate to the appropriate city an amount from the apportionment sum equal
50.2to the remuneration sum calculated in paragraph (c); and
50.3(2) allocate the remaining apportionment sum as provided under Minnesota Statutes,
50.4section 162.13, subdivision 1.
50.5EFFECTIVE DATE.This section is effective the day following final enactment.

50.6    Sec. 67. WATER PERMITTING PROCESSES FOR TRANSPORTATION
50.7PROJECTS; REPORT.
50.8By November 15, 2012, the commissioners of transportation, natural resources, and
50.9the Pollution Control Agency, in consultation with local road authorities and the Board of
50.10Water and Soil Resources, shall submit recommendations to the house of representatives
50.11and senate committees and divisions with primary jurisdiction over environment and
50.12natural resources policy and finance and transportation policy and finance on how water
50.13related permitting for transportation projects can best be streamlined through creation of a
50.14single point of issuance system. The recommendations shall specifically:
50.15(1) outline a single point of issuance system in which road authorities applying
50.16for state water permits would interact with a single state agency serving as the sole
50.17intermediary on behalf of all state agencies with an interest in a road authority's water
50.18permit application;
50.19(2) provide a goal for the maximum number of days that the state believes are
50.20necessary to issue final water permitting decisions;
50.21(3) identify how state entities with current oversight authority over water permitting
50.22decisions would allocate resources to accommodate a single point of issuance system; and
50.23(4) suggest strategies to enhance the coordination of federal and state water
50.24permitting information gathering and decision-making.

50.25    Sec. 68. RULE CHANGE.
50.26The commissioner shall amend Minnesota Rules, part 7400.5300, subpart 3, to
50.27remove the words "from Minnesota" and to allow a dealer to sell a junked vehicle as
50.28described in subpart 3 to a purchaser whom the dealer verifies is a licensed scrap metal
50.29processor. The commissioner must comply with Minnesota Statutes, section 14.389,
50.30subdivision 5, in adopting the amendment.

50.31    Sec. 69. REPEALER.
50.32Minnesota Statutes 2010, sections 169.441, subdivision 5; 169.445, subdivision 2;
50.33and 169.454, subdivision 10, are repealed."
51.1Delete the title and insert:
51.3relating to transportation; providing for alternatives for contracting and
51.4procurement, state aid, traffic regulations and reports, vehicles, vehicle titles,
51.5school buses, transit fares, and studies; amending Minnesota Statutes 2010,
51.6sections 13.72, by adding a subdivision; 116.06, subdivision 22; 161.14, by
51.7adding a subdivision; 161.321; 162.02, subdivisions 2, 3; 162.09, subdivisions 2,
51.83, 4; 162.13, subdivision 1; 162.155; 168.10, subdivision 1a; 168.27, subdivisions
51.92, 3, 3c; 168A.01, subdivisions 6a, 8a, 12a, 16, by adding a subdivision; 168A.04,
51.10subdivision 5; 168A.05, subdivision 3; 168A.09, by adding a subdivision;
51.11168A.15, subdivision 2; 168A.151, subdivisions 1, 6; 169.06, subdivision 4;
51.12169.09, subdivision 13; 169.14, by adding a subdivision; 169.4501, subdivisions
51.131, 2; 169.4503, subdivisions 5, 20, by adding subdivisions; 169.4582, subdivision
51.142; 169.79, subdivision 6; 169.86, by adding a subdivision; 169.865, subdivision
51.154; 169.98, subdivisions 1, 3; 174.03, by adding a subdivision; 299D.09;
51.16325F.6641; 325F.6644, subdivisions 1, 2; 473.408, by adding a subdivision;
51.17Minnesota Statutes 2011 Supplement, section 169.86, subdivision 5; Laws 2009,
51.18chapter 36, article 3, sections 28; 29; proposing coding for new law in Minnesota
51.19Statutes, chapters 161; 171; 174; repealing Minnesota Statutes 2010, sections
51.20169.441, subdivision 5; 169.445, subdivision 2; 169.454, subdivision 10."