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S.F. No. 2321 - Transportation Omnibus Policy Bill (Third Engrossment)
 
Author: Senator Joe Gimse
 
Prepared By: Krista Boyd, Senate Fiscal Analyst (651/296-7681)
 
Date: April 26, 2012



 

Section 1 (S.F. No. 1147, Sen Gimse) specifies data privacy protections for various documents related to an RFQ (request for qualifications) and an RFP (request for proposals) at various stages of the solicitation and proposal process for construction manager/general contractor contracts.  This section is effective the day after final enactment and expires one year following the acceptance of ten construction manager/general contractor contracts.

Section 2 (S.F. No. 1860, chapter 161, Sen. Pederson) provides that concrete diamond grinding and saw slurry associated with road work is not within the meaning of “solid waste," when it is deposited in compliance with general standards and best management practices for state waters.

Section 3 (S.F. No. 1063, Sen. Senjem) designates Trunk Highway 14, from South Dakota to Wisconsin, as the Black and Yellow Trail.  The commissioner will erect appropriate signs, using only nonstate funds.

Section 4 (S.F. No. 1530, Sen. Gimse) provides for a contingent appropriation from the trunk highway fund to the Commissioner of Transportation in the event of a government shutdown.  The appropriation is to pay the costs of highway construction and maintenance contracts for which funds were previously encumbered.  The appropriation also covers MnDOT employees whose work is essential to administer and perform the contracts and MMB for related accounting and payroll services.

Section 5 (S.F. No. 1147, Sen. Gimse) establishes definitions for construction manager/general contractor contracts.  “Construction manager/general contractor” is defined in subdivision 4 as an entity selected by the commissioner to manage the construction process and be responsible for price, schedule, and execution of preconstruction services and workmanship of construction.  This section is effective the day after final enactment and expires one year following the acceptance of ten construction manager/general contractor contracts.

Section 6 (S.F. No. 1147, Sen. Gimse) establishes the authority of a construction manager/general contractor.

Subdivision 1 allows the commissioner to use the procedures in section 7 of this bill to select a construction manager/general contractor and limits the commissioner to four such projects during a calendar year.

Subdivision 2 gives the commissioner final authority to decide to use a construction manager/general contractor contracting procedure.

Subdivision 3 authorizes the commissioner to accept or reject any or all responses received as a result of an RFQ or RFP and resolicit, using the same or different requirements.

Subdivision 4 requires the commissioner to notify the legislative Transportation Committees when using the  construction manager/general contractor method of procurement and to explain reasons for the decision to use this  method.

This section is effective the day after final enactment and expires one year following the acceptance of ten construction manager/general contractor contracts.

Section 7 (S.F. No. 1147, Sen. Gimse) provides specific procedures relating to soliciting proposals, Phase 1 RFPs, and Phase 2 construction manager/general contractor contracts, This section is effective the day after final enactment and expires one year following the acceptance of ten construction manager/general contractor contracts.

Section 8 (S.F. No. 1126, Sen. Dibble) amends Minnesota Statutes, section 161.321, the small business contracts section of law in the trunk highway chapter of statutes.  Several changes are clarifying.  Subdivisions that contain substantive changes are:

Subdivision 1a states legislative findings that:  (1) businesses that are owned and operated by women, individuals with physical disabilities, and minorities are underutilized in highway contracts; (2) race- and gender-conscious measures are needed to correct the impact of past discrimination; and (3) the state’s interest in remedying discrimination in the highway construction industry through a targeted group business program is a compelling interest.

Subdivision 2 strikes provisions relating to the current small business set-aside program.  These provisions are restated and expanded in subdivision 2a.  It also expands the four percent preference allowed to small businesses in economically disadvantaged areas.  Current law allows this preference for procurement; the bill applies the preference to “specified construction work.”

Subdivision 2a restates the current state law that allows the commissioner to set goals binding on the prime contractor relating to use of subcontractors that are small targeted group businesses and veteran-owned small businesses.  The subdivision adds a requirement that prime contractors demonstrate good faith effort to meet goals.

Subdivision 4a requires periodic reevaluation by the Commissioners of Transportation and Administration of disparity between the percentage of targeted group businesses and the percentage of their use in construction contracts.

Section 9 (H.F. No. 518, Sen. DeKruif) amends the section of law concerning creation of the county state-aid highway (CSAH) system, by prohibiting MnDOT from utilizing the expedited process for adopting rules.

Section 10 (H.F. No. 518, Sen. DeKruif) provides that CSAH rules have the force of law as provided in Minnesota Statutes, chapter 14, which deals with rulemaking.

Section 11 (H.F. No. 518, Sen. DeKruif) amends the section of law concerning MnDOT promulgation of rules for the municipal state-aid street system by striking a reference to the ability to use the expedited rulemaking process.

Section 12 (H.F. No. 518, Sen. DeKruif) provides that MSAS rules have the force of law as provided in chapter 14, which deals with rulemaking.

Section 13 (S.F. No. 1661, Sen. Chamberlain) provides that a city that has 5,000 population before a decennial census, and has fewer than 5,000 according to the census, is deemed to have 5,000 population (and is thus eligible for MSAS aid) until the end of the fourth year of the decade.  This section is effective July 1, 2012.

Section 14 (S.F. No. 1661, Sen. Chamberlain) states that, for the purpose of calculating a city’s allocation (based 50 percent on population), a city receiving MSAS funds has a population equal to the greater of 5,000 or as otherwise determined by statute.  This section is effective July 1, 2012.

Section 15 (H.F. No. 518, Sen. DeKruif) directs the commissioner to adopt rules establishing engineering standards for cost estimation when calculating money needs for CSAH and MSAS apportionment purposes.  These rules, along with rules pertaining to the CSAH and MSAS systems, calculation of money needs, and apportionment of money to counties and cities are exempt from the full rulemaking process and may be adopted by expedited rulemaking, except that they do not expire after two years.

Section 16 (S.F. No. 1733, Sen. Stumpf) broadens a “first haul” exception from certain vehicle weight regulations.  The exception applies to vehicles that exceed weight limits by ten percent or less and are performing the first transport of unprocessed farm products from the place of production to a location within 50 miles.  The section increases the allowed travel distance from 50 miles to 100 miles.

Section 17 (H.F. No. 2239, chapter 195, Sen. Nelson) provides that a restored pioneer vehicle, as newly defined in section 25 of this bill, may be taxed and registered as current law provides for a vehicle manufactured prior to 1936 that is owned and operated as a collector’s item.

Section 18 (S.F. No. 2273, chapter 163, Sen. Howe) allows a new motor vehicle dealer that is also licensed as a scrap metal processor to acquire a junked vehicle from a salvage pool, insurance company, or its agent.

Section 19 (S.F. No. 2273, chapter 163, Sen. Howe) allows a used motor vehicle dealer that is also licensed as a scrap metal processor to acquire a junked vehicle from a salvage pool, insurance company, or its agent.

Section 20 (S.F. No. 2273, chapter 163, Sen. Howe) allows a vehicle salvage pool licensee to sell junked vehicles to a licensed scrap metal processor.

Section 21 (H.F. No. 2136, Sen. Gazelka) amends the definition of “high-value vehicle” as used in connection with motor vehicle titles to specify that a vehicle with a gross vehicle weight of over 26,000 pounds is high-value only if it is not a late-model vehicle.

Section 22 (H.F. No. 2136, Sen. Gazelka) amends the definition of “late-model vehicle” as used in connection with motor vehicle titles.  The change bases the determination on the manufacturer’s designated model year rather than the model year of vehicle manufacture.  Under the new language, a late-model vehicle is one that was manufactured in the current calendar year or any of the preceding five calendar years.

Section 23 (H.F. No. 2136, Sen. Gazelka) amends the definition of “older model vehicle” as used in connection with motor vehicle titles.  The change identifies an older model vehicle as one that is not a late-model vehicle.

Section 24 (H.F. No. 2239, chapter 195, Sen. Nelson) specifies that a restored pioneer vehicle is not classified as a reconstructed vehicle.

Section 25 (H.F. No. 2239, chapter 195, Sen. Nelson) defines “restored pioneer vehicle” in the motor vehicle title chapter of statutes.  It is a vehicle that was manufactured before 1919, containing replaced essential parts to restore or retain the character and appearance of the original vehicle.

Section 26 (H.F. No. 2239, chapter 195, Sen. Nelson) states requirements for an application for a certificate of title on a restored pioneer vehicle.  The application must include evidence of the manufacturer’s year, make, model, and valid identification number for the vehicle.  If the application is insufficient, the commissioner may require additional documentation.

Section 27 (H.F. No. 2239, chapter 195, Sen. Nelson) provides that a certificate of title issued for a restored pioneer vehicle must include the valid identifying number provided by the applicant under section 26 of this bill, along with the original vehicle manufacture year, not the year of restoration.  The title must not bear a “reconstructed vehicle” brand.

Section 28 (H.F. No. 2239, chapter 195, Sen. Nelson) allows for issuance of a replacement title for a restored pioneer vehicle that has a Minnesota title that was issued before August 1, 2012.

Section 29 (H.F. No. 2239, chapter 195, Sen. Nelson) provides for an owner of a restored pioneer vehicle, after altering the vehicle, to surrender the existing certificate of title for cancellation and apply for a new one.

Section 30 (H.F. No. 2136, Sen. Gazelka) changes the length of time from 48 hours after taking possession, to ten days after obtaining title, for an insurer to notify the Department of Public Safety of having acquired ownership of a late-model or high-value vehicle.  The threshold is changed from 70 percent to 80 percent of the vehicle’s cash value, that triggers the requirement that a self-insured owner of a late-model or high-value vehicle must apply for a salvage certificate of title.  The section eliminates the exception for expenses related to airbags in calculating the amount of damage.

Section 31 (S.F. No. 2273, chapter 163, Sen. Howe) allows a salvage pool or insurance company, or its agent, to sell an unrepairable total loss vehicle with a junking certificate to a licensed scrap metal processor.

Section 32 (S.F. No. 1719, Sen. Hoffman) allows a person who meets the following five requirements to stop vehicles and hold them in place until it is safe to proceed:

  • Hold a motorcycle road guard certificate;
  • Meet safety and equipment standards;
  • Be escorting a motorcycle group ride;
  • Notify all cities through which the group will pass; and
  • Obtain the consent of the chief of police of any city of the first class through which the group will pass.

The motorcycle road guard may direct motorcycles within a group ride or other vehicle traffic to act contrary to traffic control signals.  A vehicle stopped by a motorcycle road guard may proceed only when directed by the flagger or police officer.  This section is effective one year after publication of rules in the State Register.

Section 33 (S.F. No. 1730, Sen. Rest) requires the Commissioner of Public Safety to provide to the Commissioner of Transportation copies of accident reports involving damage to state-owned infrastructure.

Section 34 (Committee Amendment, Sen. Wolf) amends the statute on bicycle equipment, providing that a bicycle may be equipped with a white flashing front lamp and bicycle tires may have studs or other protuberances to increase traction.

Section 35 (H.F. No. 392, chapter 137, Sen. Wolf) modifies and updates the statutory reference to federal school bus body standards to apply 2010, rather than 2005, specifications and procedures.

Section 36 (H.F. No. 392, chapter 137, Sen. Wolf) provides that statutory standards apply to a school bus manufactured after December 31, 2012.  Buses manufactured on or before December 31, 2012, are subject to state standards in effect on the date the vehicle was manufactured.

Section 37 (H.F. No. 392, chapter 137, Sen. Wolf)  requires the color black for the area around lenses of signal lamps.  Black visors or hoods may be used.

Section 38 (H.F. No. 392, chapter 137, Sen. Wolf) eliminates current statutory language pertaining to seat depth and seat back height.

Section 39 (H.F. No. 392, chapter 137, Sen. Wolf) inserts new language establishing standards for required auxiliary fans.

Section 40 (H.F. No. 392, chapter 137, Sen. Wolf) inserts new language establishing standards for video/mobile surveillance systems.

Section 41 (H.F. No. 392, chapter 137, Sen. Wolf) deals with reporting misbehavior on a school bus, and states that the school official must report the incident to the Commissioner of Public Safety upon request of the commissioner, not on a form developed by the commissioner.

Section 42 (S.F. No. 1140, Sen. Parry) clarifies how and where a vehicle’s front and rear license plates must be displayed and mounted on the vehicle.

Section 43 (H.F. No. 518, Sen. DeKruif) changes language relating to an existing $300 permit fee for a vehicle hauling raw or unfinished forest products.  Fee revenues will be deposited in the bridge inspection and signing account rather than in the trunk highway fund, as provided by current law.

Section 44 (H.F. No. 518, Sen. DeKruif) restates, with some modifications, the language that creates the bridge inspection and signing account in the special revenue fund.  Money in the account is annually appropriated to the commissioner for local bridge inspection and posting of weight limits.

Section 45 (Committee Amendment, Sen. Bakk) allows a road authority to issue an annual permit for a six-axle vehicle or combination to haul farm supplies at a weight up to 90,000, or 99.000 pounds during winter weight restrictions.  Current law allows this operation only with raw or unprocessed agricultural products.

Section 46 (Committee Amendment, Sen. Bakk) allows a road authority to issue an annual permit for a seven-axle vehicle or combination to haul farm supplies at a weight up to 97,000, or 99.000 pounds during winter weight restrictions.  Current law allows this operation only with raw or unprocessed agricultural products.

Section 47 (H.F. No. 518, Sen. DeKruif) changes the deposit of fee revenues for special farm products hauling permits to the bridge inspection and signing account rather than in the trunk highway fund, as provided in current law.

Section 48 (S.F. No. 1733, Sen. Stumpf) provides that a civil penalty for overweight vehicles must take place within 90 days of weight record inspection.

Section 49 (H.F. No. 1835, Sen. Chamberlain) adds black and gold to the list of allowable main colors of a county sheriff’s office vehicle. Current statute restricts allowable predominant colors to brown or white.

Section 50 (H.F. No. 1835, Sen. Chamberlain) allows a security guard to continue to use a motor vehicle that is predominantly gold if it was used before August 1, 2012.

Section 51 (S.F. No. 1719, Sen. Hoffman) creates the motorcycle road guard certificate.

Subdivision 1 requires a motorcycle road guard to possess a valid certificate issued by the commissioner to perform the traffic control activities in section 31.

Subdivision 2 directs the Commissioner of Public Safety, through the Motorcycle Safety Center, to establish qualifications to obtain the certificate.  The qualified person must be at least 18 years old, possess a valid driver’s license, and successfully complete a motorcycle road guard certification course developed and offered by the Motorcycle Center or agents.  The commissioner, also through the Motorcycle Center, must establish safety and equipment standards for operating as a motorcycle road guard, including wearing a reflective safety vest.

Subdivision 3 requires the commissioner to collect a fee for motorcycle road guard certificate applicants, which covers the department’s costs.

Subdivision 4 provides that violation of this section is a petty misdemeanor.

Subdivision 5 authorizes the commissioner to adopt rules to carry out this section.  The rules must specify the fee to be collected under subdivision 3.

Section 52 (S.F. No. 1960, Sen. Gimse) directs the Commissioner of Transportation, in cooperation with the Commissioner of the Department of Employment and Economic Development, to study freight rail economic development and submit to the relevant legislative committees an interim report by January 15, 2013, and a final report on September 1, 2013.  The study’s findings are to be included in the statewide freight and passenger rail plan.  The Commissioner of Transportation may expend up to $216,000 from the rail service improvement account to pay the costs of the study.

Section 53 (S.F. No. 1439, Sen. Goodwin) creates the safe routes to school program.

Subdivision 1 defines terms used in this section.

Subdivision 2 creates the program and directs the commissioner to develop and implement the program.  The purpose of the program is to assist in funding capital investments for safe and appealing nonmotorized transportation to and from school.

Subdivision 3 establishes two accounts.  The first is the safe routes to school account in the bond proceeds fund.  Money in the account is for bond-eligible projects on public property receiving financial assistance as provided in this section.  The second account is the safe routes to school account in the general fund, which may be used on projects receiving financial assistance under this section.

Subdivision 4 contains a statement of purpose and legislative intent.

Subdivision 5 directs the Commissioner of Transportation to establish program requirements and a competitive process for assistance, including grant solicitation, application requirements, payment procedures, and a schedule for application, evaluation, and award of assistance.

Subdivision 6 directs the commissioner to establish selection criteria, which must include establishment or improvement of capital infrastructure to improve safety and encourage nonmotorized school transportation.

Subdivision 7 requires cancellation after five years of the grant and repayment of proceeds paid to the grantee if the commissioner determines the grantee has not proceeded with timely implementation of the project.

Subdivision 8 requires a report by the commissioner to the legislative Transportation Committees every year by November 1.  The subdivision specifies the content of the report, including any recommendations for legislation.

This section is effective the day following final enactment.

Section 54 (Committee Amendment, Sen. Gimse) removes a statutory requirement that small vehicle passenger service for persons receiving nonemergency medical care and receiving reimbursement from the state’s medical assistance program, must meet Department of Transportation standards for special transportation services.

Section 55 (S.F. No. 2529, Sen. Chamberlain) exempts from gas tax:  a) transportation providers for recipients of medical assistance home and community-based waivers who are enrolled in certain day programs, effective retroactive to January 1, 2012, and b) a motor vehicle used exclusively as a mobile medical unit for the provision of medical or dental services, effective retroactive to January 1, 2011.

Section 56 (S.F. No. 2529, Sen. Chamberlain) exempts from special fuel tax:  a) transportation providers for recipients of medical assistance home and community-based waivers who are enrolled in certain day programs, effective retroactive to January 1, 2012, and b) a motor vehicle used exclusively as a mobile medical unit for the provision of medical or dental services, effective retroactive to January 1, 2011.

Section 57 (S.F.No. 2529, Sen. Chamberlain) exempts from petroleum products sales tax:  a) transportation providers for recipients of medical assistance home and community-based waivers who are enrolled in certain day programs, effective retroactive to January 1, 2012, and b) a motor vehicle used exclusively as a mobile medical unit for the provision of medical or dental services, effective retroactive to January 1, 2011.

Section 58 (Committee Amendment, Sen. Dibble) exempts from motor vehicle sales tax the purchase of a motor vehicle used exclusively as a mobile medical unit for the provision of medical or dental services.

Section 59 (S.F. No. 2251, Sen. Dibble) adjusts hourly fees charged by the State Patrol for escort services with and without a vehicle and for air flight services.  The section is effective July 1, 2012.

Section 60 (H.F. No. 2136, Sen. Gazelka) applies the requirement of seller disclosure of damage only to late-model vehicles and changes the threshold that triggers the disclosure requirement from 70 percent to 80 percent of the vehicle’s actual cash value.  The section eliminates the exception for airbag-related costs when calculating damage and makes conforming changes in the disclosure form.

Section 61 (H.F. No. 2136, Sen. Gazelka) makes conforming changes in language relating to damage disclosure with respect to transfers relating to salvage vehicles.

Section 62 (H.F. No. 2239, chapter 195, Sen. Nelson) provides that the law requiring title branding (in consumer protection chapter of statutes) does not apply to restored pioneer vehicles. 

Section 63 (S.F. No. 2131, chapter 176, Sen. Howe)  amends provisions of Laws 2009 that created a pilot program to select and build local transportation projects using the design-build method of contracting.  This section eliminates the design-build project selection council and requires the Commissioner of Transportation or a designee from the state-aid division to select, evaluate and support design-build projects on the county and municipal state-aid systems.  The section also eliminates the requirement that the project selection council report annually to the Legislature.  This section is effective immediately and expires upon completion of nine design-build projects.

Section 64 (S.F. No. 2131, chapter 176, Sen. Howe) strikes the effective date for a section of the 2009 design-build local pilot program that is in current law.

Section 65 (S.F. No. 2131, chapter 176, Sen. Howe)  makes the following changes to the 2009 design-build local pilot program:

  • Eliminates references to the “pilot” program and refers to this undertaking as a “program”;
  • Substitutes “commissioner” for the “council” that is removed in this bill; and
  • Requires concurrence by the commissioner before an RFQ or RFP may be used in a bid solicitation.

The section is effective immediately and expires upon completion of nine design-build projects.

Section 66 (S.F. No. 2131, chapter 176, Sen. Howe) strikes the effective date for a section of the 2009 design-build local pilot program that is in current law.

Section 67 (S.F. No. 2243, Sen. Pederson) authorizes the Commissioner of Transportation to utilize public-private partnership procurement methods for up to three pilot programs.  The commissioner may select the best public-private partnership mechanism that is best for the state, including, but not limited to toll facilities, BOT (build-operate-transfer), or BTO (build-transfer-operate).  The commissioner may consider constructing the I-94/Highway 10 River Crossing near Trunk Highway 24, using these mechanisms.

Section 68 (S.F. No. 2243, Sen. Pederson) defines pilot program restrictions.  The commissioner may not utilize unsolicited proposals for a public-private initiative, but must select participating entities using a competitive basis.  The section limits noncompete agreements and transfer of infrastructure ownership.

Section 69 (S.F. No. 2243, Sen. Pederson) specifies considerations the commissioner must use in selecting a private entity with which to enter into a public-private project.

Section 70 (S.F. No. 2243, Sen. Pederson) states provisions that must be included and others that may be included in a public-private agreement.

Section 71 (S.F.  No. 2243, Sen. Pederson) allows the commissioner to utilize available federal funds in connection with a public-private agreement.

Section 72 (S.F. No. 2243, Sen. Pederson)  requires the commissioner to report annually, beginning August 1, 2014, to the legislative Transportation Committees, on all agreements executed under pilot program authority, along with specified information on each agreement.

Section 73 (Committee Amendment, Sen. Dibble) authorizes a pilot program authorizing replacement service transit providers to add a distance-based surcharge to standard transit fares for routes with a total length greater than 15 miles, and report annually to the legislature.  The section is effective the day after final enactment and expires on January 1, 2016.

Section 74 (S.F. No. 1147, Sen. Gimse) requires the Commissioner of Transportation to report on experience with and evaluation of the construction manager/general contractor method of contracting.  The section provides for an interim report within 12 months after five contracts are accepted, and a final report within 12 months after 12 contracts are accepted.  This section is effective the day after final enactment and expires one year following the acceptance of ten construction manager/general contractor contracts.

Section 75 (S.F. No. 1661, Sen. Chamberlain) provides that a city that dropped below 5,000 population based on the 2010 federal census will receive in 2013 an amount from the MSAS fund that is equal to the sum of its 2011 MSAS allocation and the amount of its 2013 allocation under the current statutory formula.  This section is effective the day after final enactment.

Section 76 (Committee Amendment, Sen. DeKruif) provides that a city that issued bonds and had a population greater than 5,000 before the 2010 census and less than 5,000 according to the census, must receive a municipal state-aid street (MSAS) fund apportionment for the purpose of receiving from the MSAS fund an amount sufficient to pay annual debt service on certain municipal bonds until the bonds are retired, at which time this section expires.

Section 77 (H.F. No. 518, Sen. DeKruif) directs the Commissioners of Transportation, Natural Resources, and Pollution Control Agency to report by November 15, 2012, to the identified legislative committees on recommendations for a single point of issuance system to streamline water-related permitting for transportation projects.

Section 78 (S.F. No. 2273, chapter 163, Sen. Howe) directs the Commissioner of Public Safety to amend a rule concerning the sale of junked vehicles to allow a sale to a purchaser whom the dealer verifies is a licensed scrap metal processor.

Section 79 (Committee Amendment, Sen. Kruse) instructs the revisor of statutes to recodify certain statutory sections relating to towing.

Section 80 (H.F. No. 392, chapter 137, Sen. Wolf) repeals:

  • A provision that allows school buses to display certain safety messages on the bus;
  • Requiring the commissioner to compile information regarding violations, prosecutions, and convictions of safety violations by bus drivers or by the driving public; and
  • The requirement that Type III vehicles must contain at least three red reflectorized triangle road warning devices.

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