Journal of the House - 36th Day - Tuesday, April 16, 2013

A quorum was present.

Dettmer and Hilstrom were excused.

The Chief Clerk proceeded to read the Journal of the preceding day. There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.

Journal of the House - 36th Day - Tuesday, April 16, 2013 - Top of Page 3094

REPORTS OF CHIEF CLERK

S. F. No. 663 and H. F. No. 855, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Johnson, C., moved that S. F. No. 663 be substituted for H. F. No. 855 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 840 and H. F. No. 568, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Hansen moved that the rules be so far suspended that S. F. No. 840 be substituted for H. F. No. 568 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 843 and H. F. No. 1196, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Nelson moved that the rules be so far suspended that S. F. No. 843 be substituted for H. F. No. 1196 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 1168 and H. F. No. 1043, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

SUSPENSION OF RULES

Simon moved that the rules be so far suspended that S. F. No. 1168 be substituted for H. F. No. 1043 and that the House File be indefinitely postponed. The motion prevailed.

PETITIONS AND COMMUNICATIONS

The following communications were received:

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

April 15, 2013

The Honorable Paul Thissen

Speaker of the House of Representatives

The State of Minnesota

Journal of the House - 36th Day - Tuesday, April 16, 2013 - Top of Page 3095

Dear Speaker Thissen:

Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State H. F. No. 164.

Sincerely,

Mark Dayton

Governor

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Paul Thissen

Speaker of the House of Representatives

The Honorable Sandra L. Pappas

President of the Senate

I have the honor to inform you that the following enrolled Acts of the 2013 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2013

Date Filed

2013

164 11 3:02 p.m. April 15 April 15

166 13 3:02 p.m. April 15 April 15

Sincerely,

Mark Ritchie

Secretary of State

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Lenczewski from the Committee on Taxes to which was referred:

H. F. No. 740, A bill for an act relating to state lands; modifying landowners' bill of rights; modifying land acquisition account; providing for school forests; providing for sale of certain tax-forfeited land within Fond du Lac Indian Reservation; adding to and deleting from state parks and forests; authorizing certain exchanges and sales of state lands; amending Minnesota Statutes 2012, sections 84.0274, subdivision 6; 89.41; 94.165; 282.01, subdivisions 1a, 1d.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Journal of the House - 36th Day - Tuesday, April 16, 2013 - Top of Page 3096

Carlson from the Committee on Ways and Means to which was referred:

H. F. No. 1184, A bill for an act relating to operation of state government finance; changing a paid military leave provision; modifying provisions in the Veterans Service Office Grant Program; changing provisions in the Minnesota GI Bill program; establishing presumption of rehabilitation by an honorable discharge status from military service following a prior offense; providing for a bid preference for contracts for veteran-owned small businesses; allowing active duty service members to take a peace officer reciprocity exam; changing provisions for the Legislative Advisory Commission, Legislative Coordinating Commission, Legislative Commission on Pensions and Retirement, and the Legislative Audit Commission; granting authority for the secretary of state to accept funds from local government units; allowing the secretary of state to receive certain funds for the address confidentiality program; allowing the state auditor to charge a onetime user fee for a small city and town accounting system software; changing certain provisions pertaining to the state auditor; changing compensation council provisions; requiring determination of IT costs for certain projects; modifying performance measures for change items in the state budget proposal; providing for continuing appropriations under certain circumstances and federal contingency planning; changing certain Office of Enterprise Technology provisions; changing certain audit provisions from the state auditor to the legislative auditor; modifying provisions for general noncommercial radio station grants; making Department of Revenue changes; repealing the Minnesota Sunset Act; appropriating money; amending Minnesota Statutes 2012, sections 3.30, subdivision 2; 3.303, by adding a subdivision; 3.85, subdivisions 8, 9; 3.971, subdivision 6, by adding subdivisions; 6.48; 6.56, subdivision 2; 15A.082, subdivisions 1, 2, 3; 16A.10, subdivision 1c; 16A.82; 16E.07, subdivision 6, by adding a subdivision; 32C.04; 65B.84, subdivision 1; 129D.14, subdivisions 2, 3; 129D.155; 161.1419, subdivision 3; 192.26; 197.608, subdivisions 3, 4, 5, 6; 197.791, subdivisions 4, 5; 254A.035, subdivision 2; 254A.04; 256B.093, subdivision 1; 260.835, subdivision 2; 270C.69, subdivision 1; 289A.20, subdivisions 2, 4; 289A.26, subdivision 2a; 295.55, subdivision 4; 297F.09, subdivision 7; 297G.09, subdivision 6; 297I.30, by adding a subdivision; 297I.35, subdivision 2; 364.03, subdivision 3; 469.3201; 471.699; 473.843, subdivision 3; 626.8517; Laws 2012, chapter 278, article 1, section 5; proposing coding for new law in Minnesota Statutes, chapters 5; 5B; 6; 16A; 16E; 297I; 471; repealing Minnesota Statutes 2012, sections 3.304, subdivisions 1, 5; 3.885, subdivision 10; 3D.01; 3D.02; 3D.03; 3D.04; 3D.045; 3D.05; 3D.06; 3D.065; 3D.07; 3D.08; 3D.09; 3D.10; 3D.11; 3D.12; 3D.13; 3D.14; 3D.15; 3D.16; 3D.17; 3D.18; 3D.19; 3D.20; 3D.21, subdivisions 2, 3, 4, 5, 6, 7, 8; 6.58; 168A.40, subdivisions 3, 4; 197.608, subdivision 2a; 270C.145; Laws 2012, chapter 278, article 1, section 6.

Reported the same back with the following amendments:

Page 16, after line 1, insert:

"Veterans in Crisis De-escalation Training. Of this amount, up to $100,000 each year of the biennium may be spent for training state and local community safety personnel in the use of crisis de-escalation techniques for use with Minnesota veterans following their return from active military service in a combat zone. The commissioner must consult with the director of the Minnesota Peace Officers and Training Board, and may consult with any other state or local governmental official or nongovernmental authority the commissioner determines to be relevant, when selecting a service provider for this training. Among any other criteria the commissioner may establish for the selection, the training provider must have a demonstrated understanding of the transitions and challenges that veterans may experience during their re-entry into society following combat service. The commissioner must ensure that training opportunities provided are reasonably distributed statewide."

Journal of the House - 36th Day - Tuesday, April 16, 2013 - Top of Page 3097

Page 33, line 22, delete everything after the period

Page 33, delete lines 23 to 25

Page 33, line 28, delete "(d)" and insert "(e)"

Page 33, after line 28, insert:

"(b) In order to meet the fiscal obligations required under current law, the commissioner must adjust the appropriation for each forecasted program according to the forecast adjusted base spending level estimated by the commissioner in the preceding February forecast."

Reletter the paragraphs in sequence

Page 34, line 3, before the period, insert "consistent with the expiration date"

Page 34, after line 23, insert:

"Subd. 3. Statutory appropriations. All statutory appropriations from the general fund or another fund in the state treasury continue as required under current law and are not limited by subdivision 1."

Page 35, delete section 22

Page 36, delete section 23

Page 41, after line 20, insert:

"Sec. 31. REIMBURSEMENT TO CERTAIN EMPLOYEES DENIED COVERAGE.

(a) This section applies to a participant in the state employee group insurance program who was denied dependent coverage between July 1, 2012, and December 31, 2012, because of a dependent audit conducted under Laws 2011, First Special Session chapter 10, article 3, section 40. Upon written request of a participant to whom this section applies, the commissioner of management and budget must determine, within 30 days of receiving the request, if the participant's dependents would have been eligible for coverage if the participant had responded in a timely manner to a letter requesting verification of dependent eligibility. As a condition of making a determination under this section, the commissioner may require a participant to submit statements or other evidence to support the participant's request. A request under this section must be made before September 30, 2013. The commissioner must notify the participant immediately after making a determination under this section. If the commissioner determines that the dependents would have been eligible for coverage, the commissioner must, within 60 days, reimburse the participant for the documented cost of other insurance that the participant purchased for dependents during the period of denial of coverage, minus the cost of dependent coverage the participant would have paid under the state employee group insurance program.

(b) The commissioner of management and budget must allocate the cost of this section to agencies and constitutional officers based on the proportionate positive variance between the general fund reductions allocated to agencies and constitutional officers under Laws 2011, First Special Session chapter 10, article 1, section 37, subdivision 1, to the actual general fund savings realized by those agencies and constitutional officers through the verification process required in that subdivision. The amount allocated to each agency is reduced from each agency's general fund appropriation and appropriated to the commissioner of management and budget to make the payments required in this section. The appropriation is available until June 30, 2014.

EFFECTIVE DATE. This section is effective the day following final enactment."

Journal of the House - 36th Day - Tuesday, April 16, 2013 - Top of Page 3098

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 21, after the first semicolon, insert "providing a change to the state employee group insurance program under a certain circumstance;"

Correct the title numbers accordingly

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Rules and Legislative Administration.

The report was adopted.

Hornstein from the Committee on Transportation Finance to which was referred:

H. F. No. 1444, A bill for an act relating to transportation; defining project for metropolitan area regional railroad authorities' contributions toward capital costs of light rail transit or commuter rail project; amending Minnesota Statutes 2012, section 398A.10, by adding a subdivision.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

APPROPRIATIONS

Section 1. TRANSPORTATION APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the trunk highway fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2014" and "2015" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the fiscal year ending June 30, 2013, are effective the day following final enactment.

	APPROPRIATIONS
	Available for the Year
	Ending June 30
2014		2015

Sec. 2. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize direct appropriations, by fund, made in this article.

	2014	2015	Total

General	$104,061,000	$102,714,000	$206,675,000
Airports	18,959,000	18,959,000	37,918,000
C.S.A.H.	593,022,000	603,850,000	1,196,872,000
Journal of the House - 36th Day - Tuesday, April 16, 2013 - Top of Page 3099 M.S.A.S.	152,173,000	154,491,000	306,664,000
Special Revenue	49,753,000	49,959,000	99,712,000
H.U.T.D.	10,456,000	10,406,000	20,862,000
Trunk Highway	1,692,746,000	1,630,450,000	3,323,196,000

Total	$2,621,170,000	$2,570,829,000	$5,191,999,000

Sec. 3. DEPARTMENT OF TRANSPORTATION

Subdivision 1. Total Appropriation

$2,401,382,000

$2,350,854,000

Appropriations by Fund

	2014	2015

General	29,500,000	28,172,000
Airports	18,959,000	18,959,000
C.S.A.H.	593,022,000	603,850,000
M.S.A.S.	152,173,000	154,491,000
Special Revenue	2,500,000	2,500,000
H.U.T.D.	50,000	0
Trunk Highway	1,605,178,000	1,542,882,000

The amounts that may be spent for each purpose are specified in the following subdivisions.

Subd. 2. Multimodal Systems

(a) Aeronautics

(1) Airport Development and Assistance

13,648,000

This appropriation is from the state airports fund and must be spent according to Minnesota Statutes, section 360.305, subdivision 4.

The base appropriation is $14,298,000 in each year for fiscal years 2016 and 2017.

Notwithstanding Minnesota Statutes, section 16A.28, subdivision 6, this appropriation is available until expended. If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

(2) Aviation Support and Services

6,123,000

Appropriations by Fund

	2014	2015

Airports	5,286,000	5,286,000
Trunk Highway	837,000	837,000

Journal of the House - 36th Day - Tuesday, April 16, 2013 - Top of Page 3100

$65,000 in each year is from the state airports fund for the Civil Air Patrol.

(b) Transit

25,462,000

25,384,000

Appropriations by Fund

	2014	2015

General	22,187,000	22,109,000
Special Revenue	2,500,000	2,500,000
Trunk Highway	775,000	775,000

The special revenue fund appropriation is from the vehicle services operating account. This is a onetime appropriation.

The base appropriation from the general fund is $22,908,000 in each year for fiscal years 2016 and 2017.

$100,000 each year is from the general fund for the administrative expenses of the Minnesota Council on Transportation Access under Minnesota Statutes, section 174.285.

250,000

This appropriation is from the general fund for non-infrastructure activities in the safe routes to school program under Minnesota Statutes, section 174.40, subdivision 7a.

(d) Passenger Rail

500,000

This appropriation is from the general fund for passenger rail system planning, alternatives analysis, environmental analysis, design, and preliminary engineering under Minnesota Statutes, sections 174.632 to 174.636.

(e) Freight

6,153,000

5,153,000

Appropriations by Fund

	2014	2015

General	1,256,000	256,000
Trunk Highway	4,897,000	4,897,000

$1,000,000 from the general fund in fiscal year 2014 is for the department's share of costs associated with cleanup of contaminated state rail bank property. This is a onetime appropriation and is available until expended.

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Subd. 3. State Roads

(a) Operations and Maintenance

262,395,000

(b) Program Planning and Delivery Activity

(1) Program Planning and Delivery

206,883,000

206,733,000

Appropriations by Fund

	2014	2015

General	100,000	0
H.U.T.D.	50,000	0
Trunk Highway	206,733,000	206,733,000

$130,000 each year is available for administrative costs of the department's targeted group business program.

$266,000 each year is available for grants to metropolitan planning organizations outside the seven-county metropolitan area.

$75,000 each year is available for a transportation research contingent account to finance research projects that are reimbursable from the federal government or from other sources. If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

$100,000 the first year is from the general fund for development and initial implementation of the corridors of commerce program established under Minnesota Statutes, section 161.088, including but not limited to establishment of program requirements, identification and analysis of candidate projects, and legislative reporting. This is a onetime appropriation.

$50,000 the first year is from the highway user tax distribution fund to the commissioner for a grant to the Humphrey School of Public Affairs at the University of Minnesota for WorkPlace Telework program congestion relief efforts consisting of maintenance of Web site tools and content. This is a onetime appropriation and is available in the second year.

(2) Transportation Research

150,000

This appropriation is from the general fund for grants to the Humphrey School of Public Affairs at the University of Minnesota for research on transportation policy and economic competitiveness, including but not limited to innovative transportation finance options and economic development, transportation impacts of industry clusters and freight, and transportation technology impacts on economic competitiveness.

The base appropriation is $150,000 each year for fiscal years 2016 to 2018 and $0 each fiscal year thereafter.

Journal of the House - 36th Day - Tuesday, April 16, 2013 - Top of Page 3102

(3) Transportation Planning

900,000

This appropriation is for grants for transportation studies outside the metropolitan area to identify critical concerns, problems, and issues. These grants are available: (i) to regional development commissions; (ii) in regions where no regional development commission is functioning, to joint powers boards established under agreement of two or more political subdivisions in the region to exercise the planning functions of a regional development commission; and (iii) in regions where no regional development commission or joint powers board is functioning, to the department's district office for that region.

(1) State Road Construction

899,400,000

805,600,000

It is estimated that these appropriations will be funded as follows:

Appropriations by Fund

	2014	2015

Federal Highway Aid	489,200,000	482,200,000
Highway User Taxes	410,200,000	323,400,000

The commissioner of transportation shall notify the chairs and ranking minority members of the legislative committees with jurisdiction over transportation finance of any significant events that should cause these estimates to change.

This appropriation is for the actual construction, reconstruction, and improvement of trunk highways, including design-build contracts and consultant usage to support these activities. This includes the cost of actual payment to landowners for lands acquired for highway rights-of-way, payment to lessees, interest subsidies, and relocation expenses.

The base appropriation is $668,000,000 each year for fiscal years 2016 and 2017.

The commissioner may expend up to one-half of one percent of the federal appropriations under this clause as grants to opportunity industrialization centers and other nonprofit job training centers for job training programs related to highway construction.

The commissioner may transfer up to $15,000,000 each year to the transportation revolving loan fund.

The commissioner may receive money covering other shares of the cost of partnership projects. These receipts are appropriated to the commissioner for these projects.

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(2) Economic Recovery Funds - Federal Highway Aid

1,000,000

This appropriation is to complete projects using funds made available to the commissioner of transportation under title XII of the American Recovery and Reinvestment Act of 2009, Public Law 111-5, and implemented under Minnesota Statutes, section 161.36, subdivision 7. The base appropriation is $1,000,000 in fiscal year 2016 and $0 each fiscal year thereafter.

(3) Transportation Economic Development (TED)

10,000,000

Appropriations by Fund

	2014	2015

General	5,000,000	5,000,000
Trunk Highway	5,000,000	5,000,000

This appropriation is for the transportation economic development program under Minnesota Statutes, section 174.12.

(d) Highway Debt Service

158,417,000

189,821,000

$148,917,000 the first year and $180,321,000 the second year are for transfer to the state bond fund. If an appropriation is insufficient to make all transfers required in the year for which it is made, the commissioner of management and budget shall notify the senate Committee on Finance and the house of representatives Committee on Ways and Means of the amount of the deficiency and shall then transfer that amount under the statutory open appropriation. Any excess appropriation cancels to the trunk highway fund.

(e) Electronic Communications

5,171,000

Appropriations by Fund

	2014	2015

General	3,000	3,000
Trunk Highway	5,168,000	5,168,000

The general fund appropriation is to equip and operate the Roosevelt signal tower for Lake of the Woods weather broadcasting.

Subd. 4. Local Roads

(a) County State-Aid Roads

593,022,000

603,850,000

This appropriation is from the county state-aid highway fund under Minnesota Statutes, sections 161.082 to 161.085, and chapter 162, and is available until spent.

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If the commissioner of transportation determines that a balance remains in the county state-aid highway fund following the appropriations and transfers made in this subdivision, and that the appropriations made are insufficient for advancing county state-aid highway projects, an amount necessary to advance the projects, not to exceed the balance in the county state-aid highway fund, is appropriated in each year to the commissioner. Within two weeks of a determination under this contingent appropriation, the commissioner of transportation shall notify the commissioner of management and budget and the chairs and ranking minority members of the legislative committees with jurisdiction over transportation finance concerning funds appropriated.

(b) Municipal State-Aid Roads

152,173,000

154,491,000

This appropriation is from the municipal state-aid street fund for the purposes under Minnesota Statutes, chapter 162, and is available until spent.

If the commissioner of transportation determines that a balance remains in the municipal state-aid street fund following the appropriations made in this subdivision, and that the appropriations made are insufficient for advancing municipal state-aid street projects, an amount necessary to advance the projects, not to exceed the balance in the municipal state-aid street fund, is appropriated in each year to the commissioner. Within two weeks of a determination under this contingent appropriation, the commissioner of transportation shall notify the commissioner of management and budget and the chairs and ranking minority members of the legislative committees with jurisdiction over transportation finance concerning funds appropriated.

Subd. 5. Agency Management

(a) Agency Services

41,997,000

Appropriations by Fund

	2014	2015

Airports	25,000	25,000
Trunk Highway	41,972,000	41,972,000

(b) Buildings

17,838,000

Appropriations by Fund

	2014	2015

General	54,000	54,000
Trunk Highway	17,784,000	17,784,000

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If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

Subd. 6. Transfers

(a) With the approval of the commissioner of management and budget, the commissioner of transportation may transfer unencumbered balances among the appropriations from the trunk highway fund and the state airports fund made in this section. No transfer may be made from the appropriation for state road construction. No transfer may be made from the appropriations for debt service to any other appropriation. Transfers under this subdivision may not be made between funds. Transfers between programs must be reported immediately to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation finance.

(b) The commissioner shall transfer from the flexible highway account in the county state-aid highway fund: (1) $3,700,000 in the first year to the trunk highway fund; and (2) the remainder in each year to the county turnback account in the county state-aid highway fund. The funds transferred are for highway turnback purposes as provided under Minnesota Statutes, section 161.081, subdivision 3.

Subd. 7. Previous State Road Construction Appropriations

Any money appropriated to the commissioner of transportation for state road construction for any fiscal year before the first year is available to the commissioner during the biennium to the extent that the commissioner spends the money on the state road construction project for which the money was originally encumbered during the fiscal year for which it was appropriated. The commissioner of transportation shall report to the commissioner of management and budget by August 1, 2013, and August 1, 2014, on a form the commissioner of management and budget provides, on expenditures made during the previous fiscal year that are authorized by this subdivision.

Subd. 8. Contingent Appropriation

The commissioner of transportation, with the approval of the governor and the written approval of at least five members of a group consisting of the members of the Legislative Advisory Commission under Minnesota Statutes, section 3.30, and the ranking minority members of the legislative committees with jurisdiction over transportation finance, may transfer all or part of the unappropriated balance in the trunk highway fund to an appropriation: (1) for trunk highway design, construction, or

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inspection in order to take advantage of an unanticipated receipt of income to the trunk highway fund or to take advantage of federal advanced construction funding; (2) for trunk highway maintenance in order to meet an emergency; or (3) to pay tort or environmental claims. Nothing in this subdivision authorizes the commissioner to increase the use of federal advanced construction funding beyond amounts specifically authorized. Any transfer as a result of the use of federal advanced construction funding must include an analysis of the effects on the long-term trunk highway fund balance. The amount transferred is appropriated for the purpose of the account to which it is transferred.

Sec. 4. METROPOLITAN COUNCIL

$64,989,000

$64,970,000

This appropriation is from the general fund for transit system operations under Minnesota Statutes, sections 473.371 to 473.449.

$100,000 the first year is for a transitway expansion implementation plan as specified in article 2, section 19. This is a onetime appropriation.

Sec. 5. DEPARTMENT OF PUBLIC SAFETY

Subdivision 1. Total Appropriation

$156,669,000

$156,875,000

Appropriations by Fund

	2014	2015

General	9,542,000	9,542,000
Special Revenue	49,753,000	49,959,000
H.U.T.D.	10,406,000	10,406,000
Trunk Highway	86,968,000	86,968,000

The amounts that may be spent for each purpose are specified in the following subdivisions.

Subd. 2. Administration and Related Services

(a) Office of Communications

434,000

Appropriations by Fund

	2014	2015

General	41,000	41,000
Trunk Highway	393,000	393,000

(b) Public Safety Support Activity

(1) Public Safety Support			7,660,000	7,660,000
Journal of the House - 36th Day - Tuesday, April 16, 2013 - Top of Page 3107 Appropriations by Fund

	2014	2015

General	2,788,000	2,788,000
H.U.T.D.	1,366,000	1,366,000
Trunk Highway	3,506,000	3,506,000

$380,000 each year is from the general fund for payment of public safety officer survivor benefits under Minnesota Statutes, section 299A.44. If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

$1,367,000 each year is from the general fund to be deposited in the public safety officer's benefit account. This money is available for reimbursements under Minnesota Statutes, section 299A.465.

$792,000 each year is from the general fund for transfer by the commissioner of management and budget to the trunk highway fund on December 31, 2013, and December 31, 2014, respectively, in order to reimburse the trunk highway fund for expenses not related to the fund. These represent amounts appropriated out of the trunk highway fund for general fund purposes in the administration and related services program.

$610,000 each year is from the highway user tax distribution fund for transfer by the commissioner of management and budget to the trunk highway fund on December 31, 2013, and December 31, 2014, respectively, in order to reimburse the trunk highway fund for expenses not related to the fund. These represent amounts appropriated out of the trunk highway fund for highway user tax distribution fund purposes in the administration and related services program.

$716,000 each year is from the highway user tax distribution fund for transfer by the commissioner of management and budget to the general fund on December 31, 2013, and December 31, 2014, respectively, in order to reimburse the general fund for expenses not related to the fund. These represent amounts appropriated out of the general fund for operation of the criminal justice data network related to driver and motor vehicle licensing.

(2) Soft Body Armor

700,000

Appropriations by Fund

	2014	2015

General	600,000	600,000
Trunk Highway	100,000	100,000

Journal of the House - 36th Day - Tuesday, April 16, 2013 - Top of Page 3108

This appropriation is for soft body armor reimbursements under Minnesota Statutes, section 299A.38.

3,834,000

Appropriations by Fund

	2014	2015

General	1,471,000	1,471,000
H.U.T.D.	19,000	19,000
Trunk Highway	2,344,000	2,344,000

Subd. 3. State Patrol

(a) Patrolling Highways

72,522,000

Appropriations by Fund

	2014	2015

General	37,000	37,000
H.U.T.D.	92,000	92,000
Trunk Highway	72,393,000	72,393,000

(b) Commercial Vehicle Enforcement

7,796,000

4,605,000

This appropriation is from the general fund.

$1,500,000 each year is to implement the recommendations of the advisory committee on Capitol Area Security under Minnesota Statutes, section 299E.04.

The commissioner may not: (1) spend any money from the trunk highway fund for Capitol security; or (2) permanently transfer any state trooper from patrolling highways activity to Capitol security.

The commissioner may not transfer any money appropriated to the commissioner under this section: (1) to Capitol security; or (2) from Capitol security.

(d) Vehicle Crimes Unit

693,000

This appropriation is from the highway user tax distribution fund.

This appropriation is to investigate: (1) registration tax and motor vehicle sales tax liabilities from individuals and businesses that currently do not pay all taxes owed; and (2) illegal or improper activity related to sale, transfer, titling, and registration of motor vehicles.

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Subd. 4. Driver and Vehicle Services

(a) Vehicle Services

27,909,000

28,007,000

Appropriations by Fund

	2014	2015

Special Revenue	19,673,000	19,771,000
H.U.T.D.	8,236,000	8,236,000

The special revenue fund appropriation is from the vehicle services operating account.

$650,000 each year is from the special revenue fund for seven additional positions to enhance customer service related to vehicle title issuance.

$98,000 the second year is from the special revenue fund for the vehicle services portion of a new telephone system and is for transfer to the Office of Enterprise Technology for construction and development of the system. This is a onetime appropriation and is available until expended.

The base appropriation from the special revenue fund is $19,933,000 for fiscal year 2016 and $19,836,000 for fiscal year 2017.

(b) Driver Services

28,742,000

28,835,000

Appropriations by Fund

	2014	2015

Special Revenue	28,741,000	28,834,000
Trunk Highway	1,000	1,000

The special revenue fund appropriation is from the driver services operating account.

$71,000 the second year is from the special revenue fund for one additional position related to facial recognition.

$52,000 the second year is from the special revenue fund for the driver services portion of a new telephone system and is for transfer to the Office of Enterprise Technology for construction and development of the system. This is a onetime appropriation and is available until expended.

$15,000 the first year is for the costs of rulemaking related to concurrent driver education under Minnesota Statutes, section 171.05. This is a onetime appropriation and is available for two years after the year of appropriation.

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The base appropriation from the special revenue fund is $28,923,000 for fiscal year 2016 and $28,870,00 for fiscal year 2017.

Subd. 5. Traffic Safety

435,000

The commissioner of public safety shall spend 50 percent of the money available to the state under United States Code, title 23, section 164, and the remaining 50 percent must be transferred to the commissioner of transportation for hazard elimination activities under United States Code, title 23, section 152.

Subd. 6. Pipeline Safety

1,354,000

This appropriation is from the pipeline safety account in the special revenue fund.

Sec. 6. TORT CLAIMS

$600,000

This appropriation is to the commissioner of management and budget.

If the appropriation for either year is insufficient, the appropriation for the other year is available for it.

Sec. 7. REAUTHORIZATION; 2008 BOND SALE EXPENSES FOR TRUNK HIGHWAY BONDS.

$1,414,600 of the amount appropriated in Laws 2008, chapter 152, article 2, section 6, for trunk highway bond sale expenses, which was reported to the legislature according to Minnesota Statutes, section 16A.642, subdivision 1, is reauthorized and does not cancel under the terms of that subdivision. This appropriation for the bond sale expenses and the bond sale authorization in Laws 2008, chapter 152, article 2, section 7, subdivision 1, as amended, are available until December 31, 2019.

EFFECTIVE DATE. This section is effective the day following final enactment.

ARTICLE 2

TRANSPORTATION FINANCE AND POLICY

Section 1. [161.088] CORRIDORS OF COMMERCE PROGRAM.

Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given:

(1) "beyond the project limits" means any point that is located outside of the project limits and along the same trunk highway, and is located within the same region of the state;

(2) "city" means a statutory or home rule charter city;

(3) "program" means the corridors of commerce program established in this section; and

(4) "project limits" means the estimated construction limits of a project for trunk highway construction, reconstruction, or maintenance that is a candidate for selection under the corridors of commerce program.

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Subd. 2. Program authority; funding. (a) As provided in this section and subject to available funds, the commissioner shall establish a corridors of commerce program for trunk highway construction, reconstruction, and improvement, including maintenance operations, that improves commerce in the state.

(b) The commissioner may expend funds under the program from appropriations to the commissioner that are: (1) made specifically by law for use under this section; (2) at the discretion of the commissioner, made for the budget activities in the state roads operations and maintenance program, program planning and delivery, or state road construction; and (3) made for the corridor investment management strategy program, unless otherwise specified.

Subd. 3. Project classification. The commissioner shall determine whether each candidate project can be classified into at least one of the following classifications:

(1) capacity development, for a project on a segment of a trunk highway where the segment:

(i) is not a divided highway and that highway is an expressway or freeway beyond the project limits;

(ii) contains a highway terminus that lacks an intersection or interchange with another trunk highway;

(iii) contains fewer lanes of travel compared to that highway beyond the project limits; or

(iv) contains a location that is proposed as construction of a new interchange or reconstruction of an intersection to an interchange; or

(2) freight improvement, for an asset preservation or replacement project that can result in:

(i) removing or reducing barriers to commerce;

(ii) easing or preserving freight movement;

(iii) supporting emerging industries; or

(iv) providing connections between the trunk highway system and other transportation modes for the movement of freight.

Subd. 4. Project eligibility. (a) The commissioner shall establish eligibility requirements for projects that can be funded under the program. Eligibility must include:

(1) consistency with the statewide multimodal transportation plan under section 174.03;

(2) location of the project on an interregional corridor, for a project located outside of the Department of Transportation metropolitan district;

(3) placement into at least one project classification under subdivision 3;

(4) a maximum length of time, as determined by the commissioner, until commencement of construction work on the project; and

(5) for each type of project classification under subdivision 3, a maximum allowable amount for the total project cost estimate, as determined by the commissioner with available data.

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(b) A project involving construction that is already programmed in the state transportation improvement program is not eligible for funding under the program. This paragraph does not apply to a project that is programmed as result of selection under this section.

(c) A project may be, but is not required to be, identified in the 20-year state highway capital investment plan under section 174.03.

Subd. 5. Project selection process; criteria. (a) The commissioner shall establish a process for identification, evaluation, and selection of projects under the program.

(b) As part of the project selection process, the commissioner shall annually accept recommendations on candidate projects from area transportation partnerships and other interested stakeholders in each Department of Transportation district. For each candidate project identified under this paragraph, the commissioner shall determine the project's eligibility, classify the project, and, if appropriate, evaluate the project for the program.

(1) a return on investment measure that provides for comparison across eligible projects;

(2) measurable impacts on commerce and economic competitiveness;

(3) efficiency in the movement of freight, including but not limited to:

(i) measures of annual average daily traffic and commercial vehicle miles traveled, which may include data near the project location on that trunk highway or on connecting trunk and local highways; and

(ii) measures of congestion or travel time reliability, which may be within or near the project limits, or both;

(4) improvements to traffic safety;

(5) connections to regional trade centers, local highway systems, and other transportation modes;

(6) the extent to which the project addresses multiple transportation system policy objectives and principles; and

(7) support and consensus for the project among members of the surrounding community.

(d) As part of the project selection process, the commissioner may divide funding to be separately available among projects within each classification under subdivision 3 and may apply separate or modified criteria among those projects falling within each classification.

Subd. 6. Funding allocations; operations and maintenance. In identifying the amount of funding allocated to a project under the program, the commissioner may include allocations of funds for operations and maintenance resulting from that project that are assigned in future years following completion of the project, subject to available funds for the program in those years from eligible sources.

Subd. 7. Legislative report; evaluation. (a) By January 15, 2014, and annually by November 1 starting in 2015, the commissioner shall electronically submit a report on the corridors of commerce program to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. At a minimum, the report must include:

(1) a summary of program implementation, including a review of the project selection process, eligibility and criteria, funds expended in the previous selection cycle, and total funds expended since program inception;

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(2) a listing of projects funded under the program in the previous selection cycle, including: (i) project classification; (ii) a breakdown of project costs and funding sources; (iii) any future operating costs assigned under subdivision 6; and (iv) a brief description that is comprehensible to a lay audience;

(3) a listing of candidate project recommendations required under subdivision 5, paragraph (b), including project classification and disposition in the selection process;

(4) financial analysis of unfunded candidate projects; and

(5) any recommendations for changes to statutory requirements of the program.

(b) Starting in 2017 and in every odd-numbered year thereafter, the commissioner shall incorporate into the report the results of an independent evaluation of impacts and effectiveness of the program. The evaluation must be performed by agency staff or a consultant. The individual or individuals performing the evaluation must have experience in program evaluation, but must not be regularly involved in the program's implementation.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 2. Minnesota Statutes 2012, section 161.20, subdivision 3, is amended to read:

Subd. 3. Trunk highway fund appropriations. The commissioner may expend trunk highway funds only for trunk highway purposes. Payment of expenses related to Bureau of Criminal Apprehension laboratory, Explore Minnesota Tourism kiosks, Minnesota Safety Council, ~~tort claims,~~ driver education programs, Emergency Medical Services Board, Mississippi River Parkway Commission, payments to MN.IT Services in excess of actual costs incurred for trunk highway purposes, and personnel costs incurred on behalf of the Governor's Office do not further a highway purpose and do not aid in the construction, improvement, or maintenance of the highway system.

Sec. 3. Minnesota Statutes 2012, section 161.44, is amended by adding a subdivision to read:

Subd. 12. Periodic review; appropriation. (a) The commissioner shall examine all real property owned by the state and under the custodial control of the department to identify whether any may be (1) no longer needed, and (2) suitable for sale or some other means of disposal.

(b) From the proceeds of the sale of land under this subdivision, there is annually appropriated from the trunk highway fund to the commissioner an amount sufficient to carry out the requirements of this subdivision and related activities under this section and sections 117.135, 117.226, 161.16, 161.23, 161.43, 161.431, 161.433, 161.442, and 272.68.

(c) The commissioner shall report the findings under paragraph (a), and on revenues and expenditures under this subdivision, to the legislative committees with jurisdiction over transportation policy and finance by March 1, 2015, and March 1, 2017. The report may be submitted electronically.

Sec. 4. Minnesota Statutes 2012, section 163.051, is amended to read:

163.051 ~~METROPOLITAN~~ COUNTY WHEELAGE TAX.

Subdivision 1. Tax authorized. (a) Except as provided in paragraph ~~(b)~~ (c), the board of commissioners of each ~~metropolitan~~ county is authorized to levy by resolution a wheelage tax ~~of $5 for the year 1972 and each subsequent year thereafter by resolution~~ at the rate specified in paragraph (b), on each motor vehicle that is kept in such county when not in operation and that is subject to annual registration and taxation under chapter 168. The board may provide by resolution for collection of the wheelage tax by county officials or it may request that the tax be collected by the state registrar of motor vehicles~~, and~~. The state registrar of motor vehicles shall collect such tax on behalf of the county if requested, as provided in subdivision 2.

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(b) The wheelage tax under this section is at the rate of:

(1) from January 1, 2014, through December 31, 2017, $10 per year for each county that authorizes the tax; and

(2) on and after January 1, 2018, up to $20 per year, in any increment of a whole dollar, as specified by each county that authorizes the tax.

(1) motorcycles, as defined in section 169.011, subdivision 44;

(2) motorized bicycles, as defined in section 169.011, subdivision 45; and

~~(3) electric-assisted bicycles, as defined in section 169.011, subdivision 27; and~~

~~(4)~~ (3) motorized foot scooters, as defined in section 169.011, subdivision 46.

(d) For any county that authorized the tax prior to the effective date of this section, the wheelage tax continues at the rate provided under paragraph (b).

Subd. 2. Collection by registrar of motor vehicles. The wheelage tax levied by any ~~metropolitan~~ county, if made collectible by the state registrar of motor vehicles, shall be certified by the county auditor to the registrar not later than August 1 in the year before the calendar year or years for which the tax is levied, and the registrar shall collect such tax with the motor vehicle taxes on the affected vehicles for such year or years. Every owner and every operator of such a motor vehicle shall furnish to the registrar all information requested by the registrar. No state motor vehicle tax on any such motor vehicle for any such year shall be received or deemed paid unless the applicable wheelage tax is paid therewith. The proceeds of the wheelage tax levied by any metropolitan county, less any amount retained by the registrar to pay costs of collection of the wheelage tax, shall be paid to the commissioner of management and budget and deposited in the state treasury to the credit of the county wheelage tax fund of each metropolitan county.

Subd. 2a. Tax proceeds deposited; costs of collection; appropriation. Notwithstanding the provisions of any other law, the state registrar of motor vehicles shall deposit the proceeds of the wheelage tax imposed by subdivision 2, to the credit of the county wheelage tax ~~fund~~ account of each ~~metropolitan~~ county. The amount necessary to pay the costs of collection of said tax is appropriated from the county wheelage tax ~~fund~~ account of each ~~metropolitan~~ county to the state registrar of motor vehicles.

Subd. 3. Distribution to ~~metropolitan~~ county; appropriation. ~~On or before April 1 in 1972 and each subsequent year, the commissioner of management and budget~~ On a monthly basis, the registrar of motor vehicles shall issue a warrant in favor of the treasurer of each ~~metropolitan~~ county for which the registrar has collected a wheelage tax in the amount of such tax then on hand in the county wheelage tax ~~fund~~ account. There is hereby appropriated from the county wheelage tax ~~fund~~ account each year, to each ~~metropolitan~~ county entitled to payments authorized by this section, sufficient moneys to make such payments.

Subd. 4. Use of tax. The treasurer of each ~~metropolitan~~ county receiving ~~moneys~~ payments under subdivision 3 shall deposit such ~~moneys~~ payments in the county road and bridge fund. The moneys shall be used for purposes authorized by law which are highway purposes within the meaning of the Minnesota Constitution, article 14.

~~Subd. 6. Metropolitan county defined. "Metropolitan county" means any of the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.~~

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Subd. 7. Offenses; penalties; application of other laws. (a) Any owner or operator of a motor vehicle who ~~shall~~ willfully ~~give~~ gives any false information relative to the tax ~~herein~~ authorized by this section to the registrar of motor vehicles or any ~~metropolitan~~ county, or who ~~shall~~ willfully ~~fail or refuse~~ fails or refuses to furnish any such information, ~~shall be~~ is guilty of a misdemeanor.

(b) Except as otherwise ~~herein~~ provided in this section, the collection and payment of a wheelage tax and all matters relating thereto ~~shall be~~ are subject to all provisions of law relating to collection and payment of motor vehicle taxes so far as applicable.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to a registration period under Minnesota Statutes, chapter 168, starting on or after January 1, 2014.

Sec. 5. Minnesota Statutes 2012, section 168A.01, subdivision 6a, is amended to read:

Subd. 6a. High-value vehicle. "High-value vehicle" means a vehicle that had an actual cash value in excess of ~~$5,000~~ $9,000 before being damaged, or a vehicle with a manufacturer's rating of over 26,000 pounds gross vehicle weight that is not a late-model vehicle.

Sec. 6. Minnesota Statutes 2012, section 171.05, subdivision 2, is amended to read:

Subd. 2. Person less than 18 years of age. (a) Notwithstanding any provision in subdivision 1 to the contrary, the department may issue an instruction permit to an applicant who is 15, 16, or 17 years of age and who:

(1) has completed a course of driver education in another state, has a previously issued valid license from another state, or is enrolled in either:

(i) a public, private, or commercial driver education program that is approved by the commissioner of public safety and that includes classroom and behind-the-wheel training; or

(ii) an approved behind-the-wheel driver education program when the student is receiving full-time instruction in a home school within the meaning of sections 120A.22 and 120A.24, the student is working toward a homeschool diploma, the student is taking home-classroom driver training with classroom materials approved by the commissioner of public safety, and the student's parent has certified the student's homeschool and home-classroom driver training status on the form approved by the commissioner;

(2) has completed the classroom phase of instruction in the driver education program or has completed 15 hours of classroom instruction in a program that presents classroom and behind-the-wheel instruction concurrently;

(3) has passed a test of the applicant's eyesight;

(4) has passed a department-administered test of the applicant's knowledge of traffic laws;

(5) has completed the required application, which must be approved by (i) either parent when both reside in the same household as the minor applicant or, if otherwise, then (ii) the parent or spouse of the parent having custody or, in the event there is no court order for custody, then (iii) the parent or spouse of the parent with whom the minor is living or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the minor, (v) the foster parent or the director of the transitional living program in which the child resides or, in the event a person under the age of 18 has no living father, mother, or guardian, or is married or otherwise legally emancipated, then (vi) the applicant's adult spouse, adult close family member, or adult employer; provided, that the approval required by this clause contains a verification of the age of the applicant and the identity of the parent, guardian, adult spouse, adult close family member, or adult employer; and

(6) has paid ~~the fee~~ all fees required in section 171.06, subdivision 2.

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(b) For the purposes of determining compliance with the certification of paragraph (a), clause (1), item (ii), the commissioner may request verification of a student's homeschool status from the superintendent of the school district in which the student resides and the superintendent shall provide that verification.

(c) The instruction permit is valid for two years from the date of application and may be renewed upon payment of a fee equal to the fee for issuance of an instruction permit under section 171.06, subdivision 2.

EFFECTIVE DATE. This section is effective June 1, 2013.

Sec. 7. Minnesota Statutes 2012, section 171.05, is amended by adding a subdivision to read:

Subd. 4. Rulemaking. The commissioner shall adopt rules to carry out the provisions of subdivision 2.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 8. Minnesota Statutes 2012, section 171.061, subdivision 4, is amended to read:

Subd. 4. Fee; equipment. (a) The agent may charge and retain a filing fee of $5 $8 for each application. Except as provided in paragraph (c), the fee shall cover all expenses involved in receiving, accepting, or forwarding to the department the applications and fees required under sections 171.02, subdivision 3; 171.06, subdivisions 2 and 2a; and 171.07, subdivisions 3 and 3a.

(b) The statutory fees and the filing fees imposed under paragraph (a) may be paid by credit card or debit card. The driver's license agent may collect a convenience fee on the statutory fees and filing fees not greater than the cost of processing a credit card or debit card transaction. The convenience fee must be used to pay the cost of processing credit card and debit card transactions. The commissioner shall adopt rules to administer this paragraph using the exempt procedures of section 14.386, except that section 14.386, paragraph (b), does not apply.

(c) The department shall maintain the photo identification equipment for all agents appointed as of January 1, 2000. Upon the retirement, resignation, death, or discontinuance of an existing agent, and if a new agent is appointed in an existing office pursuant to Minnesota Rules, chapter 7404, and notwithstanding the above or Minnesota Rules, part 7404.0400, the department shall provide and maintain photo identification equipment without additional cost to a newly appointed agent in that office if the office was provided the equipment by the department before January 1, 2000. All photo identification equipment must be compatible with standards established by the department.

(d) A filing fee retained by the agent employed by a county board must be paid into the county treasury and credited to the general revenue fund of the county. An agent who is not an employee of the county shall retain the filing fee in lieu of county employment or salary and is considered an independent contractor for pension purposes, coverage under the Minnesota State Retirement System, or membership in the Public Employees Retirement Association.

(e) Before the end of the first working day following the final day of the reporting period established by the department, the agent must forward to the department all applications and fees collected during the reporting period except as provided in paragraph (d).

EFFECTIVE DATE. This section is effective January 1, 2014.

Sec. 9. [174.12] TRANSPORTATION ECONOMIC DEVELOPMENT PROGRAM.

Subdivision 1. Program established. (a) The commissioners of transportation and employment and economic development shall develop and implement a transportation economic development program as provided in this section that provides financial assistance on a geographically balanced basis through competitive grants for projects in all modes of transportation that provide measurable local, regional, or statewide economic benefit.

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(b) The commissioners of transportation and employment and economic development may provide financial assistance for a transportation project at their discretion, subject to the requirements of this section.

Subd. 2. Transportation economic development accounts. (a) A transportation economic development account is established in the special revenue fund under the budgetary jurisdiction of the legislative committees having jurisdiction over transportation finance. Money in the account may be expended only as appropriated by law. The account may not contain money transferred or otherwise provided from the trunk highway fund.

(b) A transportation economic development account is established in the trunk highway fund. The account consists of funds donated, allotted, transferred, or otherwise provided to the account.

Subd. 3. Program administration. In implementing the transportation economic development program, the commissioners of transportation and employment and economic development shall make reasonable efforts to (1) publicize each solicitation for applications among all eligible recipients, and (2) provide technical and informational assistance in creating and submitting applications.

Subd. 4. Economic impact performance measures. The commissioner of employment and economic development shall develop economic impact performance measures to analyze projects for which financial assistance under this section is being applied for or has been previously provided.

Subd. 5. Financial assistance; criteria. The commissioners of transportation and employment and economic development shall establish criteria for evaluating projects for financial assistance under this section. At a minimum, the criteria must provide an objective method to prioritize and select projects on the basis of:

(1) the extent to which the project provides measurable economic benefit;

(2) consistency with relevant state and local transportation plans;

(3) the availability and commitment of funding or in-kind assistance for the project from nonpublic sources;

(4) the need for the project as part of the overall transportation system;

(5) the extent to which completion of the project will improve the movement of people and freight; and

(6) geographic balance as required under subdivision 7, paragraph (b).

Subd. 6. Financial assistance; project evaluation process. (a) Following the criteria established under subdivision 5, the commissioner of employment and economic development shall (1) evaluate proposed projects, and (2) certify those that may receive financial assistance.

(b) As part of the project evaluation process, the commissioner of transportation shall certify that a project constitutes an eligible and appropriate transportation project.

Subd. 7. Financial assistance; awards. (a) The financial assistance awarded by the commissioners of transportation and employment and economic development may not exceed 70 percent of a project's total costs.

(b) The commissioners of transportation and employment and economic development shall ensure that financial assistance is provided in a manner that is balanced throughout the state, including with respect to (1) the number of projects receiving funding in a particular geographic location or region of the state, and (2) the total amount of financial assistance provided for projects in a particular geographic location or region of the state.

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Subd. 8. Legislative report. (a) By February 1 of each odd-numbered year, the commissioner of transportation, with assistance from the commissioner of employment and economic development, shall submit a report on the transportation economic development program to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance and economic development policy and finance.

(b) At a minimum, the report must:

(1) summarize the requirements and implementation of the transportation economic development program established in this section;

(2) review the criteria and economic impact performance measures used for evaluation, prioritization, and selection of projects;

(3) provide a brief overview of each project that received financial assistance under the program, which must at a minimum identify:

(i) basic project characteristics, such as funding recipient, geographic location, and type of transportation modes served;

(ii) sources and respective amounts of project funding; and

(iii) the degree of economic benefit anticipated or observed, following the economic impact performance measures established under subdivision 4;

(4) identify the allocation of funds, including but not limited to a breakdown of total project funds by transportation mode, the amount expended for administrative costs, and the amount transferred to the transportation economic development assistance account;

(5) evaluate the overall economic impact of the program consistent with the accountability measurement requirements under section 116J.997; and

(6) provide recommendations for any legislative changes related to the program.

Sec. 10. Minnesota Statutes 2012, section 174.40, is amended by adding a subdivision to read:

Subd. 7a. Related non-infrastructure activities. (a) The commissioner may not expend an appropriation from the bond proceeds fund, or provide financial assistance from an appropriation from the bond proceeds fund, for the purposes specified in this subdivision.

(b) Subject to appropriations made specifically for the purposes of this subdivision, the commissioner may expend funds for non-infrastructure activities to encourage walking and bicycling to school, including:

(1) planning activities;

(2) public awareness campaigns and outreach to press and community leaders;

(3) traffic education and enforcement in the vicinity of schools;

(4) student sessions on bicycle and pedestrian safety, health, and the environment; and

(5) financial assistance for training, volunteers, and managers of safe routes to school programs.

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Sec. 11. [174.42] TRANSPORTATION ALTERNATIVES PROJECTS.

Subdivision 1. Definition. For purposes of this section, "transportation alternatives" means those projects identified in the state transportation improvement program having (1) a program category of bike trail, enhancement, or recreational trail; (2) any program category that is substantially similar to a category identified in clause (1); or (3) a route system category of ped/bike.

Subd. 2. Funding requirement. In each federal fiscal year, the commissioner shall obtain a total amount in federal authorizations for reimbursement on transportation alternatives projects that is equal to or greater than the annual average of federal authorizations on transportation alternatives projects calculated over the preceding four federal fiscal years.

Sec. 12. Minnesota Statutes 2012, section 219.1651, is amended to read:

219.1651 GRADE CROSSING SAFETY ACCOUNT.

A Minnesota grade crossing safety account is created in the special revenue fund, consisting of money credited to the account by law. Money in the account is appropriated to the commissioner of transportation for rail-highway grade crossing safety projects on public streets and highways, including engineering costs. At the discretion of the commissioner of transportation, money in the account at the end of each ~~fiscal year cancels~~ biennium may cancel to the trunk highway fund.

Sec. 13. Minnesota Statutes 2012, section 297A.993, subdivision 1, is amended to read:

Subdivision 1. Authorization; rates. Notwithstanding section 297A.99, subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the board of a county outside the metropolitan transportation area, as defined under section 297A.992, subdivision 1, or more than one county outside the metropolitan transportation area acting under a joint powers agreement, may by resolution of the county board, or each of the county boards, following a public hearing impose (1) a transportation sales tax at a rate of up to one-half of one percent on retail sales and uses taxable under this chapter, and (2) an excise tax of $20 per motor vehicle, as defined in section 297B.01, subdivision 11, purchased or acquired from any person engaged in the business of selling motor vehicles at retail, occurring within the jurisdiction of the taxing authority. ~~The taxes imposed under this section are subject to approval by a majority of the voters in each of the counties affected at a general election who vote on the question to impose the taxes.~~

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 14. Minnesota Statutes 2012, section 297A.993, subdivision 2, is amended to read:

Subd. 2. Allocation; termination. The proceeds of the taxes must be dedicated exclusively to: (1) payment of the capital cost of a specific transportation project or improvement; (2) payments of the costs, which may include both capital and operating costs, of a specific transit project or improvement; or (3) payment of transit operating costs. The ~~transportation~~ project or improvement must be designated by the board of the county, or more than one county acting under a joint powers agreement. Except for taxes for operating costs of a transit project or improvement, or for transit operations, the taxes must terminate ~~after the project or improvement has been completed~~ when revenues raised are sufficient to finance the project.

EFFECTIVE DATE. This section is effective the day following final enactment.

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Sec. 15. Minnesota Statutes 2012, section 299E.01, subdivision 2, is amended to read:

Subd. 2. Responsibilities. (a) The division shall be responsible and shall utilize state employees for security and public information services in state-owned buildings and state leased-to-own buildings in the Capitol area, as described in section 15B.02;. It shall provide ~~such~~ personnel as are required by the circumstances to insure the orderly conduct of state business and the convenience of the public.

(b) As part of the division permanent staff, the director must establish the position of emergency manager that includes, at a minimum, the following duties:

(1) oversight of the consolidation, development, and maintenance of plans and procedures that provide continuity of security operations;

(2) the development and implementation of tenant training that addresses threats and emergency procedures; and

(3) the development and implementation of threat and emergency exercises.

(d) The director, in consultation with the advisory committee under section 299E.04, shall, at least annually, hold a meeting or meetings to discuss, among other issues, Capitol complex security, emergency planning, public safety, and public access to the Capitol complex. The meetings must include, at a minimum:

(1) Capitol complex tenants and state employees;

(2) nongovernmental entities, such as lobbyists, vendors, and the media; and

(3) the public and public advocacy groups.

Sec. 16. Minnesota Statutes 2012, section 299E.01, subdivision 3, is amended to read:

Subd. 3. Powers and duties transferred. All powers, duties and responsibilities heretofore assigned by law to the commissioner of administration relating to the general function of security in ~~such~~ Capitol complex state-owned buildings are hereby transferred to the commissioner of public safety. The commissioner of public safety shall have the final authority regarding public safety and security in the Capitol complex. The commissioner of administration shall have the powers, duties, and responsibilities relating to the Capitol complex state-owned buildings as provided under chapter 16B.

Sec. 17. Minnesota Statutes 2012, section 398A.10, is amended by adding a subdivision to read:

Subd. 4. Definition. For purposes of this section, "project" means the initial construction of a minimum operable segment of a new light rail transit or commuter rail line, but does not include infill stations, project enhancements, extensions, or supportive infrastructure constructed after the rail transit line is operational.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 18. Laws 2009, chapter 9, section 1, the effective date, is amended to read:

EFFECTIVE DATE. This section is effective the day following final enactment, and expires on June 30, ~~2013~~ 2016.

EFFECTIVE DATE. This section is effective the day following final enactment.

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Sec. 19. CENTRAL CORRIDOR LIGHT RAIL TRANSIT; CENTRAL STATION ACCESSIBILITY.

(a) For purposes of this section:

(1) "city" means the city of St. Paul;

(2) "council" has the meaning given in Minnesota Statutes, section 473.121, subdivision 3; and

(3) "pedestrian skyway system" has the meaning given in Minnesota Statutes, section 469.125, subdivision 4.

(b) Notwithstanding any law to the contrary, for the Central Station on the Central Corridor light rail transit line, the council and city shall include construction or establishment of access to a pedestrian skyway system as part of the initial transit line construction project. The council and city shall ensure that public access to the pedestrian skyway system is provided by an elevator located at the site of the station.

(c) The council and city shall meet the requirements under this section at the time of initial construction of the Central Corridor light rail transit line and the Central Station.

EFFECTIVE DATE; APPLICATION. As to the Metropolitan Council, this section is effective the day following final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. As to the city of St. Paul, this section is effective the day after the city council of the city of St. Paul and its chief clerical officer timely complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

Sec. 20. BUS RAPID TRANSIT DEVELOPMENT AUTHORIZED.

Washington County Regional Rail Authority may exercise the powers conferred by Minnesota Statutes, section 398A.04, to plan, establish, acquire, develop, construct, purchase, enlarge, extend, improve, maintain, equip, operate, regulate, and protect a bus rapid transit system located within Washington County on transitways included in and approved by the Metropolitan Council's 2030 Transportation Policy Plan, including the Rush Line, Highway 36, Gateway, and Red Rock transit corridors.

EFFECTIVE DATE. Pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a), this section is effective without local approval the day following final enactment.

Sec. 21. MARKED INTERSTATE HIGHWAY 35E PROJECTS; TRAIL MITIGATION.

(a) For purposes of this section, "35E corridor projects" means those projects for construction or reconstruction of marked Interstate Highway 35E between downtown St. Paul and the vicinity of marked Interstate Highway 694, that are under design, engineering, or construction on the effective date of this act or within the subsequent three years. The term includes but is not limited to the projects identified by the commissioner of transportation as the Cayuga project and the MnPASS project.

(b) The commissioner of transportation shall include in the 35E corridor projects the following components:

(1) creation of a continuous separated bicycle and pedestrian path within the right-of-way of the projects, located on the east side of marked Interstate Highway 35E, from Cayuga Street to Arlington Avenue;

(2) retention, at a minimum, of the same number of trail connector facilities designed for exclusive use of bicyclists and pedestrians between the Gateway State Trail and the east side of marked Interstate Highway 35E over the length of the 35E corridor projects;

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(3) establishment of reasonable access points to the facilities identified in clauses (1) and (2) over the length of the 35E corridor projects; and

(4) retention or reconstruction of any portion of the Gateway State Trail impacted by the 35E corridor projects.

(c) In implementing the requirements under this section, the commissioner shall conform with a bicycle master plan developed by the city of St. Paul.

Sec. 22. TRANSITWAY EXPANSION IMPLEMENTATION PLAN.

(a) For purposes of this section, "transitway" includes but is not limited to light rail transit; commuter rail; bus rapid transit, whether arterial or highway; and streetcars.

(b) From funds appropriated by law for the purposes of this section, the Metropolitan Council shall, in consultation with interested stakeholders, develop an implementation plan for accelerated development of transitways in the metropolitan area.

(1) address implementation management issues and identify roles, responsibilities, and lead agencies for each component of the plan;

(2) create a program of transitway projects to develop and construct in a concurrent manner under the plan;

(3) establish a timeline and preliminary schedule for coordinated and accelerated project development of the transitways;

(4) establish a financial plan that includes but is not limited to:

(i) identification of capital and operating costs for each transitway;

(ii) allocation of cost shares; and

(iii) a proposal for fully funding the plan; and

(5) identify any legislative changes relevant to the plan.

(d) By January 15, 2014, the Metropolitan Council shall submit an electronic copy of the implementation plan to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance, as provided under Minnesota Statutes, section 3.195, subdivision 1.

Sec. 23. REPEALER.

(a) Minnesota Statutes 2012, section 161.04, subdivision 6, is repealed.

(b) Minnesota Statutes 2012, section 174.285, subdivision 8, is repealed."

Delete the title and insert:

"A bill for an act relating to government finance; appropriating money for transportation, Metropolitan Council, and public safety activities and programs; providing for fund transfers, tort claims, and certain contingent appropriations; modifying various provisions related to transportation finance and policy; making technical and clarifying changes; amending Minnesota Statutes 2012, sections 161.20, subdivision 3; 161.44, by adding a

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subdivision; 163.051; 168A.01, subdivision 6a; 171.05, subdivision 2, by adding a subdivision; 171.061, subdivision 4; 174.40, by adding a subdivision; 219.1651; 297A.993, subdivisions 1, 2; 299E.01, subdivisions 2, 3; 398A.10, by adding a subdivision; Laws 2009, chapter 9, section 1; proposing coding for new law in Minnesota Statutes, chapters 161; 174; repealing Minnesota Statutes 2012, sections 161.04, subdivision 6; 174.285, subdivision 8."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Taxes.

The report was adopted.

Johnson, S., from the Committee on Labor, Workplace and Regulated Industries to which was referred:

H. F. No. 1765, A bill for an act relating to tax increment financing and other publicly financed projects; modifying requirements for receipt of public funds.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Rules and Legislative Administration.

The report was adopted.

SECOND READING OF SENATE BILLS

S. F. Nos. 663, 840, 843 and 1168 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Hortman and Lenczewski introduced:

H. F. No. 1781, A bill for an act relating to taxation; sales and use; providing an exemption for a biopharmaceutical manufacturing facility; amending Minnesota Statutes 2012, sections 297A.71, by adding a subdivision; 297A.75.

The bill was read for the first time and referred to the Committee on Taxes.

Hansen and Kahn introduced:

H. F. No. 1782, A bill for an act relating to natural resources; modifying Mississippi River Corridor Critical Area provisions; modifying rulemaking; amending Minnesota Statutes 2012, section 116G.15, subdivisions 2, 3, 4, 7.

The bill was read for the first time and referred to the Committee on Government Operations.

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Hausman; Ward, J.E., and Carlson introduced:

H. F. No. 1783, A bill for an act relating to capital improvements; authorizing spending to acquire and better public land and buildings and other improvements of a capital nature with certain conditions; authorizing the sale of state bonds; modifying previous appropriations; appropriating money; amending Minnesota Statutes 2012, sections 16A.641, subdivision 4a; 462A.36, subdivision 1; 462A.37, subdivision 1, by adding subdivisions; Laws 2008, chapter 152, article 2, section 6; Laws 2009, chapter 93, article 1, section 22, as amended; Laws 2011, First Special Session chapter 12, section 10.

The bill was read for the first time and referred to the Committee on Rules and Legislative Administration.

Murphy, E., moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by the Speaker.

MESSAGES FROM THE SENATE

The following message was received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate File, herewith transmitted:

S. F. No. 671.

JoAnne M. Zoff, Secretary of the Senate

FIRST READING OF SENATE BILLS

S. F. No. 671, A bill for an act relating to public safety; providing that funds received for out-of-state offenders incarcerated in Minnesota are appropriated to the Department of Corrections; modifying certificates of compliance for public contracts; appropriating money for public safety, judiciary, corrections, and human rights; amending Minnesota Statutes 2012, sections 243.51, subdivisions 1, 3; 363A.36, subdivisions 1, 2; Laws 2011, First Special Session chapter 1, article 1, section 3, subdivision 3; repealing Minnesota Statutes 2012, section 243.51, subdivision 5.

The bill was read for the first time.

Paymar moved that S. F. No. 671 and H. F. No. 724, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.

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CALENDAR FOR THE DAY

H. F. No. 19, A bill for an act relating to accounts; allowing agency designations in certain situations; providing form language; making clarifying changes; amending Minnesota Statutes 2012, sections 524.6-201, subdivision 7, by adding a subdivision; 524.6-203; 524.6-204; 524.6-211; 524.6-213, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 524.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were: