Subd. 4.

Duties.

The advisory council must:

(1) advise the governor and heads of state departments and agencies on policies, programs, and services affecting traffic safety;

(2) advise the appropriate representatives of state departments on the activities of the Toward Zero Deaths program, including but not limited to educating the public about traffic safety;

(3) encourage state departments and other agencies to conduct needed research in the field of traffic safety;

(4) review recommendations of the subcommittees and working groups;

(5) review and comment on deleted text begin all grants dealing with traffic safety and ondeleted text end the development and implementation of state and local traffic safety plans; deleted text begin anddeleted text end

(6) new text begin advise the commissioner of public safety on grant agreements for projects under subdivision 6, paragraph (b); andnew text end

new text begin (7) new text end make recommendations on safe road zone safety measures under section 169.065.

Subd. 5.

Administration.

(a) The Office of Traffic Safety in the Department of Public Safety, in cooperation with the Departments of Transportation and Health, must serve as the host agency for the advisory council and must manage the administrative and operational aspects of the advisory council's activities. The commissioner of public safety must perform financial management on behalf of the council.

(b) The advisory council must meet no less than four times per year, or more frequently as determined by the chair, a vice chair, or a majority of the council members. The advisory council is subject to chapter 13D. new text begin The advisory council may host an annual state traffic safety conference.new text end

(c) The chair must regularly report to the respective commissioners on the activities of the advisory council and on the state of traffic safety in Minnesota.

(d) The terms, compensation, and appointment of members are governed by section 15.059.

(e) The advisory council may appoint subcommittees and working groups. Subcommittees must consist of council members. Working groups may include nonmembers. Nonmembers on working groups must be compensated pursuant to section 15.059, subdivision 3, only for expenses incurred for working group activities.

new text begin (f) The commissioner of public safety may enter into contracts and interagency agreements for data, expertise, and research projects to inform the advisory council. new text end

Subd. 8.

Driver's license photograph; exceptions.

Allowing headwear new text begin or a medically required covering new text end in a driver's license photograph or allowing driver's license identification other than a photograph, under certain circumstances, are governed under section 171.071.

Subd. 1a.

Greater Minnesota transit account.

The greater Minnesota transit account is established within the transit assistance fund in the state treasury. Money in the account is annually appropriated to the commissioner of transportation for assistance to transit systems outside the metropolitan area under section 174.24. The commissioner may use up to two percent of the available revenues in the account in each fiscal year for administration of the transit program. The commissioner deleted text begin shalldeleted text end new text begin mustnew text end use the account for transit operations as provided in section 174.24 and related program administration.new text begin The commissioner may maintain a reserved balance in the account of no more than five percent of the total annual transit assistance fund balance forward from the previous fiscal year.new text end

Subd. 4a.

Project funding; regional balance.

deleted text begin (a)deleted text end To ensure regional balance throughout the state, the commissioner must distribute all available funds under the programnew text begin in each project selection roundnew text end according to the following regional allocations:

(1) Metro Projects: at least 25 percent and no more than 27.5 percent of the funds are for projects that are located within, on, or directly adjacent to an area bounded by marked Interstate Highways 494 and 694;

(2) Metro Connector Projects: at least 35 percent and no more than 37.5 percent of the funds are for projects that:

(i) are not included in clause (1); and

(ii) are located wholly or primarily within a greater metropolitan county; and

(3) Regional Center Projects: at least 35 percent and no more than 40 percent of the funds are for projects that are not included in clause (1) or (2).

deleted text begin (b) The commissioner must calculate the percentages under paragraph (a) using total funds under the program over the current and prior two consecutive project selection rounds. The calculations must include readiness development projects funded under subdivision 4b. deleted text end

Subd. 177.

Route No. 246.

Beginning at a point in or adjacent to Nerstrand; thence extending in a general northerly direction to a point westerly of Dennison; thence continuing in a general northwesterly direction to a point deleted text begin on Route No. 1 at ordeleted text end new text begin near 110th Street Eastnew text end near Northfield.

Subd. 4.

Impact mitigation; interlinking.

(a) To provide for impact mitigation, the applicable entity must interlink the project or portfolio as provided in this subdivision.

(b) Impact mitigation is sufficient under subdivision 2, paragraph (b), if the project or portfolio is interlinked to offset actions such that the total greenhouse gas emissions reduction from the offset actions, after accounting for the greenhouse gas emissions otherwise resulting from the project or portfolio, is consistent with meeting the targets specified under subdivision 2, paragraph (a). Each comparison under this paragraph must be performed over equal comparison periods.

(c) An offset action consists of a project, program, operations modification, or mitigation plan in one or more of the following areas:

(1) transit expansion, including but not limited to regular route bus, arterial bus rapid transit, highway bus rapid transit, rail transit, and intercity passenger rail;

(2) transit service improvements, including but not limited to increased service level, transit fare reduction, and transit priority treatments;

(3) active transportation infrastructure;

(4) micromobility infrastructure and service, including but not limited to shared vehicle services;

(5) transportation demand management, including but not limited to vanpool and shared vehicle programs, remote work, and broadband access expansion;

(6) parking management, including but not limited to parking requirements reduction or elimination and parking cost adjustments;

(7) land use, including but not limited to residential and other density increases, mixed-use development, and transit-oriented development;

(8) infrastructure improvements related to traffic operations, including but not limited to roundabouts and reduced conflict intersections;

(9) natural systemsnew text begin improvementsnew text end , including but not limited tonew text begin ecosystem restoration,new text end prairie restoration, reforestation,new text begin afforestation, wetland conservation, restorative agriculture practices,new text end and urban green space; deleted text begin anddeleted text end

(10)new text begin land acquisition including easements, restoration, and enhancement for: (i) the outdoor recreation system under section 86A.04, excluding state rest areas; and (ii) regional parks; andnew text end

new text begin (11)new text end as specified by the commissioner in the manner provided under paragraph (e).

(d) An offset action may be identified as interlinked to the project or portfolio if:

(1) there is a specified project, program, modification, or mitigation plan;

(2) the necessary funding sources are identified and sufficient amounts are committed;

(3) the mitigation is localized as provided in subdivision 5; and

(4) procedures are established to ensure that the mitigation action remains in substantially the same form or a revised form that continues to meet the calculation under paragraph (b).

(e) The commissioner may authorize additional offset actions under paragraph (c) if:

(1) the offset action is reviewed and recommended by the technical advisory committee under section 161.1782; and

(2) the commissioner determines that the offset action is directly related to reduction in the transportation sector of greenhouse gas emissions or vehicle miles traveled.

Subd. 6.

Dealer.

"Dealer" means any person, firm, or corporation regularly engaged in the business of manufacturing, or selling, purchasing, and generally dealing in new and unused motor vehicles having an established place of business for the sale, trade, and display of new and unused motor vehicles and having in possession new and unused motor vehicles for the purposes of sale or trade. "Dealer" also includes any person, firm or corporation regularly engaged in the business of manufacturing or selling, purchasing, and generally dealing in new and unused motor vehicle bodies, chassis mounted or not, and having an established place of business for the sale, trade and display of such new and unused motor vehicle bodies, and having in possession new and unused motor vehicle bodies for the purposes of sale or trade.new text begin For the purposes of sections 168.27, subdivision 28; 168.33, subdivision 8a; 168.345; and 168.346, the commissioner may designate a motor vehicle dealer licensed under the laws of a contiguous state as a dealer or licensed dealer.new text end

Subd. 1a.

Passenger automobile; hearse.

(a) On passenger automobiles as defined in section 168.002, subdivision 24, and hearses, except as otherwise provided, the registration tax is calculated as $10 plus:

(1) for a vehicle initially registered in Minnesota prior to November 16, 2020, 1.54 percent of the manufacturer's suggested retail price of the vehicle and the destination charge, subject to the adjustments in paragraphs (e) and (f); or

(2) for a vehicle initially registered in Minnesota on or after November 16, 2020, 1.575 percent of the manufacturer's suggested retail price of the vehicle, subject to the adjustments in paragraphs (e) and (f).

(b) The registration tax calculation must not include the cost of each accessory or item of optional equipment separately added to the vehicle and the manufacturer's suggested retail price. The registration tax calculation must not include a destination charge, except for a vehicle previously registered in Minnesota prior to November 16, 2020.

(c) The registrar must determine the manufacturer's suggested retail price:

(1) using list price information published by the manufacturer or any nationally recognized firm or association compiling such data for the automotive industry;

(2) if a dealer does not determine the amount, using the retail price label as provided by the manufacturer under United States Code, title 15, section 1232; or

(3) if the retail price label is not available, using the actual sales price of the vehicle.

If the registrar is unable to ascertain the manufacturer's suggested retail price of any registered vehicle in the foregoing manner, the registrar may use any other available source or method.

(d) The registrar must calculate the registration tax using information available to dealers and deputy registrars at the time the initial application for registration is submitted.

(e) The amount under paragraph (a), clauses (1) and (2), must be calculated based on a percentage of the manufacturer's suggested retail price, as follows:

(1) during the first year of vehicle life, upon 100 percent of the price;

(2) for the second year, 95 percent of the price;

(3) for the third year, 90 percent of the price;

(4) for the fourth year, 80 percent of the price;

(5) for the fifth year, 70 percent of the price;

(6) for the sixth year, 60 percent of the price;

(7) for the seventh year, 50 percent of the price;

(8) for the eighth year, 40 percent of the price;

(9) for the ninth year, 25 percent of the price; and

(10) for the tenth year, ten percent of the price.

(f) For the 11th and each succeeding year, the amount under paragraph (a), clauses (1) and (2), must be calculated as $20.

(g) Except as provided in subdivision 23, for any vehicle previously registered in Minnesota and regardless of prior ownership, the total amount due under this subdivision deleted text begin and subdivision 1mdeleted text end must not exceed the smallest total amount previously paid or due on the vehicle.

Subd. 1m.

Electric vehicle.

deleted text begin In addition to the tax under subdivision 1a,deleted text end new text begin (a)new text end A surcharge deleted text begin of $75deleted text end new text begin as provided in paragraph (b) or (c)new text end is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a.new text begin The surcharge is in addition to the tax under subdivision 1a.new text end

new text begin (b) The surcharge is calculated as the greater of the minimum amount specified in paragraph (c) or: new text end

new text begin (1) 0.5 percent of the manufacturer's suggested retail price, as determined under subdivision 1a, paragraph (c); multiplied by new text end

new text begin (2) the percentage specified under subdivision 1a, paragraph (e), clauses (1) to (10), for the vehicle's year of life, or ten percent for a vehicle in its 11th and each succeeding year of life. new text end

new text begin (c) The minimum amount is: new text end

new text begin (1) $150 for a registration period beginning on or after January 1, 2026, and on or before June 30, 2027; or new text end

new text begin (2) $100 for a registration period beginning on or after July 1, 2027. new text end

new text begin (d)new text end Notwithstanding subdivision 8, revenue deleted text begin from the fee imposeddeleted text end new text begin collectednew text end under this subdivision must be deposited in the highway user tax distribution fund.

Subd. 8.

Exemptions.

(a) Salespeople and other employees of licensed dealers under this section are not required to obtain individual licenses.new text begin For purposes of this subdivision, independent contractors are not employees.new text end

(b) Isolated or occasional sales or leases of new or used motor vehicles are exempt from this section. A person who makes only isolated or occasional sales or leases is not required to be licensed under this section, is not considered to be in the business of selling or leasing motor vehicles, and does not qualify to receive dealer plates under subdivision 16. "Isolated or occasional sales or leases" means: (1) the sale or lease of a motor vehicle with an actual cash value of $1,000 or less made by a charitable organization; (2) the sale, purchase, or lease of not more than five motor vehicles in a 12-month period, other than pioneer or classic motor vehicles as defined in section 168.10, subdivisions 1a and 1bdeleted text begin ,deleted text end new text begin ;new text end or (3) sales by a licensed auctioneer selling motor vehicles at an auction if, in the ordinary course of the auctioneer's business, the sale of motor vehicles is incidental to the sale of other real or personal property. For purposes of this subdivision, charitable organization means a nonprofit charitable organization that qualifies for tax exemption under section 501(c)(3) of the Internal Revenue Code.

(c) A person whose sales of new and used motor vehicles consist solely of sales to political subdivisions and their agencies of vehicles used solely as firefighting equipment is not required to obtain a license under this section. The person may apply for and receive in-transit plates under subdivision 17 in the same manner as licensed motor vehicle dealers for the purpose of allowing firefighting equipment to be transported from the dealer's source of supply or other place of storage to the dealer's place of business, to another place of storage, or directly to the purchaser.

Subd. 11.

Dealers' licenses; location change notice; fee.

(a) Application for a dealer's license or notification of a change of location of the place of business on a dealer's license must include a street address, not a post office box, and is subject to the commissioner's approval.

(b) Upon the filing of an application for a dealer's license and the proper fee, unless the application on its face appears to be invalid, the commissioner deleted text begin shalldeleted text end new text begin mustnew text end grant a 90-day temporary license. During the 90-day period following issuance of the temporary license, the commissioner deleted text begin shalldeleted text end new text begin mustnew text end inspect the place of business site and insure compliance with this section and rules adopted under this section.

(c) The commissioner may extend the temporary license 30 days to allow the temporarily licensed dealer to come into full compliance with this section and rules adopted under this section.

(d) In no more than 180 days following issuance of the temporary license, the dealer license must either be granted or denied.

(e) A license must be denied under the following conditions:

(1) if deleted text begin within the previous ten yearsdeleted text end the applicant was enjoined due to a violation of section 325F.69 or convicted of violating section 325E.14, 325E.15, 325E.16, or 325F.69, or convicted under section 609.53 of receiving or selling stolen vehicles, or convicted of violating United States Code, title 49, sections 32701 to 32711 or pleaded guilty, entered a plea of nolo contendere or no contest, or has been found guilty in a court of competent jurisdiction of any charge of failure to pay state or federal income or sales taxes or felony charge of forgery, embezzlement, obtaining money under false pretenses, theft by swindle, extortion, conspiracy to defraud, deleted text begin ordeleted text end briberynew text begin , or similar offenses committed in another statenew text end ; or

(2) if the applicant has had a dealer license revoked within the previous ten years.

(f) A license may be denied if a dealer is not in compliance with location requirements under subdivision 10 or has intentionally misrepresented any information on the dealer license application that would be grounds for suspension or revocation under subdivision 12.

(g) If the application is approved, the commissioner deleted text begin shalldeleted text end new text begin mustnew text end license the applicant as a dealer for one year from the date the temporary license is granted and issue a certificate of license that must include a distinguishing number of identification of the dealer. The license must be displayed in a prominent place in the dealer's licensed place of business.

(h) Each initial application for a license must be accompanied by a fee of $100 in addition to the annual fee. The annual fee is $150. The initial fees and annual fees must be paid into the state treasury and credited to the general fund except that $50 of each initial and annual fee must be paid into the driver and vehicle services operating account under section 299A.705.

new text begin (i) An applicant for a dealer's license under this section must submit to a criminal history records check of state data completed by the Bureau of Criminal Apprehension and a national criminal history records check, including a search of the records of the Federal Bureau of Investigation. The results of the background check must be returned to the commissioner. new text end

new text begin (j) An applicant for a dealer's license must consent to a fingerprint-based criminal history background check as required under paragraph (i), pay all required fees, and cooperate with all requests for information. An applicant must complete a new criminal history background check if more than one year has elapsed since the applicant last applied for a license. new text end

new text begin (k) Section 13.87 applies to data collected, created, maintained, and disseminated under paragraphs (i) and (j). new text end

Subd. 16.

Dealer plates: distinguishing number, fee, tax, use.

(a) The registrar deleted text begin shalldeleted text end new text begin mustnew text end issue to every motor vehicle dealer, upon a request from the motor vehicle dealer licensed as provided in subdivision 2 or 3, one or more plates displaying a general distinguishing number. This subdivision does not apply to a scrap metal processor, a used vehicle parts dealer, or a vehicle salvage pool.

new text begin (b) At any point in time, a dealer must not possess more than 50 plates issued under this subdivision. new text end

new text begin (c)new text end The fee for each of the first four plates is $75 per registration year, of which $60 must be paid to the registrar and the remaining $15 is payable as sales tax on motor vehicles under section 297B.035. For each additional plate, the dealer deleted text begin shalldeleted text end new text begin mustnew text end pay the registrar a fee of $25 and a sales tax on motor vehicles of $15 per registration year. The registrar deleted text begin shalldeleted text end new text begin mustnew text end deposit the tax in the state treasury to be credited as provided in section 297B.09. Replacement plates are subject to the fees in section 168.12.

new text begin (d)new text end Motor vehicles, new or used, owned by the motor vehicle dealership and bearing the number plate, except vehicles leased to the user who is not an employee of the dealer during the term of the lease, held for hire, or used by the dealer as a tow truck, service truck, or parts vehicle, may be driven upon the streets and highways of this state:

(1) by the motor vehicle dealer or dealer's spouse, or any full-time employee of the motor vehicle dealer for either private or business purposes;

(2) by a part-time employee when the use is directly related to a particular business transaction of the dealer;

(3) new text begin for use as a courtesy vehicle provided to a customer of the dealership while the customer's vehicle is being repaired;new text end

new text begin (4) new text end for demonstration purposes by any prospective buyer for a period of deleted text begin 48 hours or in the case of a truck, truck-tractor, or semitrailer, for a period of sevendeleted text end new text begin 14new text end days; or

deleted text begin (4)deleted text end new text begin (5)new text end in a promotional event that lasts no longer than four days in which at least three motor vehicles are involved.

deleted text begin (b)deleted text end new text begin (e)new text end A new or used motor vehicle sold by the motor vehicle dealer and bearing the motor vehicle dealer's number plate may be driven upon the public streets and highways for a period of 72 hours by the buyer for either of the following purposes: (1) removing the vehicle from this state for registration in another statedeleted text begin ,deleted text end new text begin ;new text end or (2) permitting the buyer to use the motor vehicle before the buyer receives number plates pursuant to registration. Use of a motor vehicle by the buyer under clause (2) before the buyer receives number plates pursuant to registration constitutes a use of the public streets or highways for the purpose of the time requirements for registration of motor vehicles.new text begin The requirements under this paragraph do not apply to a courtesy vehicle used as provided under paragraph (d), clause (3).new text end

new text begin (f) A vehicle displaying a dealer plate issued under this subdivision must carry written documentation within the vehicle that includes: new text end

new text begin (1) a valid driver's license; new text end

new text begin (2) proof of insurance; new text end

new text begin (3) the reason for use; and new text end

new text begin (4) if the vehicle is for use as a courtesy vehicle under paragraph (d), clause (3), a courtesy vehicle user agreement that includes a list of authorized drivers for the vehicle and their driver's license numbers and the start and end dates of use. new text end

new text begin (g) For purposes of this subdivision, "courtesy vehicle" means a passenger-class motor vehicle that a motor vehicle dealer temporarily provides at no or minimal cost to customers for customer service or mobility purposes while the customer's vehicle is serviced, repaired, or maintained. new text end

Subd. 22.

Dealer license for trailers, motorized bicycles; plates, fees; exemptions.

new text begin (a) new text end Any person, copartnership, or corporation having a permanent enclosed commercial building or structure either owned in fee or leased and engaged in the business, either exclusively or in addition to any other occupation, of selling motorized bicycles, boat trailers, horse trailers, or snowmobile trailers, may apply to the registrar for a dealer's license. Upon payment of a $10 fee the registrar deleted text begin shalldeleted text end new text begin mustnew text end license the applicant as a dealer for the remainder of the calendar year in which the application was received. The license may be renewed on or before the second day of January of each succeeding year by payment of a fee of $10.

new text begin (b)new text end The registrar deleted text begin shalldeleted text end new text begin mustnew text end issue to each dealer, upon request of the dealer,new text begin up to 50new text end dealer plates as provided in subdivision 16 upon payment of $5 for each platedeleted text begin , anddeleted text end new text begin .new text end The plates may be used in the same manner and for the same purposes as is provided in subdivision 16. Except for motorized bicycle dealers, the registrar deleted text begin shalldeleted text end new text begin mustnew text end also issue to the dealer, upon request of the dealer, "in-transit" plates as provided in subdivision 17 upon payment of a fee of $5 for each plate.

new text begin (c)new text end This subdivision does not abrogate any of the provisions of this section relating to the duties, responsibilities, and requirements of persons, copartnerships, or corporations engaged in the business, either exclusively or in addition to other occupations, of selling motor vehicles or manufactured homes, except that a seller of boat trailers, utility trailers, or snowmobile trailers who is licensed under this subdivision is not required to have a contract or franchise with a manufacturer or distributor of new boat trailers, utility trailers, or new snowmobile trailers the seller proposes to sell, broker, wholesale, or auction. This section does not require a manufacturer of snowmobile trailers whose manufacturing facility is located outside of the metropolitan area as defined in section 473.121 to have a dealer's license to transport the snowmobile trailers to dealers or retail outlets in the state.

Subdivision 1.

Requirements upon subsequent transfer; service fee.

(a) A dealer who buys a vehicle and holds it for resale need not apply for a certificate of title. Upon transferring the vehicle to another person, other than by the creation of a security interest, the dealer must promptly execute the assignment and warranty of title by a dealer, showing the names and addresses of the transferee and of any secured party holding a security interest created or reserved at the time of the resale, and the date of the security agreement in the spaces provided on the certificate of title or secure reassignment.

(b) If a dealer elects to apply for a certificate of title on a vehicle held for resale, the dealer need not register the vehicle but must pay one month's registration tax. If a dealer elects to apply for a certificate of title on a vehicle held for resale, the commissioner must not place any legend on the title that no motor vehicle sales tax was paid by the dealer but may indicate on the title whether the vehicle is a new or used vehicle.

(c) With respect to motor vehicles subject to the provisions of section 325E.15, the dealer must also, in the space provided on the certificate of title or secure reassignment, state the true cumulative mileage registered on the odometer or that the exact mileage is unknown if the odometer reading is known by the transferor to be different from the true mileage.

(d) The transferee must complete the application for title section on the certificate of title or separate title application form prescribed by the commissioner. The dealer must mail or deliver the certificate to the commissioner or deputy registrar with the transferee's application for a new certificate and appropriate taxes and fees, within the period specified under section 168A.10, subdivision 2.

(e) With respect to vehicles sold to buyers who will remove the vehicle from this state, the dealer must remove any license plates from the vehicle, issue a deleted text begin 31-daydeleted text end new text begin 60-daynew text end temporary permit pursuant to section 168.091, and notify the commissioner within 48 hours of the sale that the vehicle has been removed from this state. The notification must be made in an electronic format prescribed by the commissioner. The dealer may contract with a deputy registrar for the notification of sale to an out-of-state buyer. The deputy registrar may charge a fee of $7 per transaction to provide this service.

Subdivision 1.

Transactions.

The following retail deliveries are exempt from the fee imposed by this chapter:

(1) a retail delivery to a purchaser who is exempt from tax under chapter 297A;

(2) a retail delivery on a motor vehicle for which a permit issued by the commissioner of transportation or a road authority is required under chapter 169 or 221 and the retailer has maintained books and records through reasonable and verifiable standards that the retail delivery was on a qualifying vehicle;

(3) a retail delivery resulting from a retail sale of food and food ingredients or prepared food;

(4) a retail delivery resulting from a retail sale by a food and beverage service establishment, regardless of whether the retail delivery is made by a third party other than the food and beverage service establishment; deleted text begin anddeleted text end

(5) a retail delivery resulting from a retail sale of drugs and medical devices, accessories and supplies, or baby productsnew text begin ;new text end

new text begin (6) a retail delivery resulting from a retail sale of fuel products purchased by and delivered to a political subdivision or a trade or business; and new text end

new text begin (7) a retail delivery resulting from a retail sale of road construction materials purchased by and delivered to a political subdivision or a trade or businessnew text end .

Subd. 36.

Intersection.

deleted text begin (a)deleted text end "Intersection" means the area embraced within the prolongation or connection of the lateral curb lines or, if none, then the lateral boundary lines of the roadways of two highways which join one another at, or approximately at, right angles or the area within which vehicles traveling upon different highways joining at any other angle may come in conflict.

deleted text begin (b) Where a highway includes two roadways 30 feet or more apart, then every crossing of each roadway of such divided highway by an intersecting highway shall be regarded as a separate intersection. In the event such intersecting highway also includes two roadways 30 feet or more apart, then every crossing of two roadways of such highways shall be regarded as a separate intersection. deleted text end

Subd. 5.

Traffic-control signal.

(a) Whenever traffic is controlled by traffic-control signals exhibiting different colored lights, or colored lighted arrows, successively one at a time or in combination, only the colors Green, Red, and Yellow deleted text begin shalldeleted text end new text begin are permitted tonew text end be used, except for special pedestrian signals carrying a word or deleted text begin legenddeleted text end new text begin symbolnew text end . The traffic-control signal lights or colored lighted arrows indicate and apply to drivers of vehicles and pedestrians as follows:

(1) Green indication:

(i) Vehicular traffic facing a circular green signal may proceed straight through or turn right or left unless a sign prohibits either turn. But vehicular traffic, including vehicles turning right or left, deleted text begin shalldeleted text end new text begin mustnew text end yield the right-of-way to other vehicles and to pedestrians lawfully within the intersection or adjacent crosswalk at the time this signal is exhibited. Vehicular traffic turning left or making a U-turn to the left deleted text begin shalldeleted text end new text begin mustnew text end yield the right-of-way to other vehicles approaching from the opposite direction so closely as to constitute an immediate hazard.

(ii) Vehicular traffic facing a green arrow signal, shown alone or in combination with another indication, may cautiously enter the intersection only to make the movement indicated by the arrow, or other movement as permitted by other indications shown at the same time. Vehicular traffic deleted text begin shalldeleted text end new text begin mustnew text end yield the right-of-way to pedestrians lawfully within an adjacent crosswalk and to other traffic lawfully using the intersection.

(iii) Unless otherwise directed by a pedestrian-control signal as provided in subdivision 6, pedestrians facing any green signal, except when the sole green signal is a turn arrow, may proceed across the roadway within any marked or unmarked crosswalk. Every driver of a vehicle deleted text begin shalldeleted text end new text begin mustnew text end yield the right-of-way to such pedestrian, except that the pedestrian deleted text begin shalldeleted text end new text begin mustnew text end yield the right-of-way to vehicles lawfully within the intersection at the time that the green signal indication is first shown.

(2) Steady yellow indication:

(i) Vehicular traffic facing a steady circular yellow or yellow arrow signal is thereby warned that the related green movement new text begin or flashing yellow movement new text end is being terminated or that a red indication will be exhibited immediately thereafter when vehicular traffic must not enter the intersection, except for the continued movement allowed by any green arrow indication simultaneously exhibited.

(ii) Pedestrians facing a circular yellow signal, unless otherwise directed by a pedestrian-control signal as provided in subdivision 6, are thereby advised that there is insufficient time to cross the roadway before a red indication is shown and deleted text begin nodeleted text end new text begin anew text end pedestrian deleted text begin shalldeleted text end new text begin must notnew text end then start to cross the roadway.

(3) Steady red indication:

(i) Vehicular traffic facing a circular red signal alone must stop at a clearly marked stop line but, if none, before entering the crosswalk on the near side of the intersection or, if none, then before entering the intersection and deleted text begin shalldeleted text end new text begin mustnew text end remain standing until a green indication is shown, except as follows:

(A) the driver of a vehicle stopped as close as practicable at the entrance to the crosswalk on the near side of the intersection or, if none, then at the entrance to the intersection in obedience to a red or stop signal, and with the intention of making a right turn may make the right turn, after stopping, unless an official sign has been erected prohibiting such movement, but deleted text begin shalldeleted text end new text begin mustnew text end yield the right-of-way to pedestrians and other traffic lawfully proceeding as directed by the signal at that intersection; or

(B) the driver of a vehicle on a one-way street intersecting another one-way street on which traffic moves to the left deleted text begin shalldeleted text end new text begin mustnew text end stop in obedience to a red or stop signal and may then make a left turn into the one-way street, unless an official sign has been erected prohibiting the movement, but deleted text begin shalldeleted text end new text begin mustnew text end yield the right-of-way to pedestrians and other traffic lawfully proceeding as directed by the signal at that intersection.

(ii) Unless otherwise directed by a pedestrian-control signal as provided in subdivision 6, pedestrians facing a steady red signal alone deleted text begin shalldeleted text end new text begin mustnew text end not enter the roadway.

(iii) Vehicular traffic facing a steady red arrow signal, with the intention of making a movement indicated by the arrow, must stop at a clearly marked stop line but, if none, before entering the crosswalk on the near side of the intersection or, if none, then before entering the intersection and must remain standing until a permissive signal indication permitting the movement indicated by the red arrow is displayed, except as follows: when an official sign has been erected permitting a turn on a red arrow signal, the vehicular traffic facing a red arrow signal indication is permitted to enter the intersection to turn right, or to turn left from a one-way street into a one-way street on which traffic moves to the left, after stopping, but must yield the right-of-way to pedestrians and other traffic lawfully proceeding as directed by the signal at that intersection.

(b) In the event an official traffic-control signal is erected and maintained at a place other than an intersection, the provisions of this section are applicable except those which can have no application. Any stop required must be made at a sign or marking on the pavement indicating where the stop must be made, but in the absence of any such sign or marking the stop must be made at the signal.

(c) When a traffic-control signal indication or indications placed to control a certain movement or lane are so identified by placing a sign near the indication or indications, no other traffic-control signal indication or indications within the intersection controls vehicular traffic for that movement or lane.

Subdivision 1.

Seat belt requirement.

(a) Except as provided in section 169.685, a properly adjusted and fastened seat belt, including both the shoulder and lap belt when the vehicle is so equipped, deleted text begin shalldeleted text end new text begin mustnew text end be worn by the driver and passengers of a passenger vehicle, commercial motor vehicle, type III vehicle, and type III Head Start vehicle. Notwithstanding the equipment exemption in section 169.685, subdivision 1, this paragraph applies to the driver and passengers of an autocycle equipped with seat belts.new text begin This paragraph applies to the operator and passengers of a class 2 all-terrain vehicle, as defined in section 84.92, subdivision 10, when operated on or within the right-of-way of a public road when the all-terrain vehicle is factory-equipped with seat belts.new text end

(b) A person who is 15 years of age or older and who violates paragraph (a) is subject to a fine of $25. The driver of the vehicle in which a violation occurs is subject to a $25 fine for each violation of paragraph (a) by the driver or by a passenger under the age of 15, but the court may not impose more than one surcharge under section 357.021, subdivision 6, on the driver. The Department of Public Safety deleted text begin shalldeleted text end new text begin mustnew text end not record a violation of this subdivision on a person's driving record.

(c) The driver of a bus is not subject to the fine under paragraph (b) for a violation of paragraph (a) by a passenger under the age of 15. This paragraph does not apply tonew text begin :new text end (1) a school bus, including a type III vehicle; and (2) a Head Start bus, including a type III Head Start vehicle.

Subd. 1a.

Definition.

For purposes of this section, "qualifying agricultural products" means:

(1) agricultural crops, including but not limited to corn, soybeans, oats, grain, and by-products of agricultural crops;

(2) livestock, including but not limited to cattle, hogs, and poultry;

(3) food crops, including but not limited to sugar beets, potatoes, carrots, and onions;

(4) fluid milk;

(5) seed and material used for or in livestock and poultry feed;

(6) livestock manure; deleted text begin anddeleted text end

(7) raw or processed grass seednew text begin ; andnew text end

new text begin (8) before January 1, 2031, crude soybean oilnew text end .

Subd. 3.

Requirements; restrictions.

(a) A vehicle or combination of vehicles operating under this section:

(1) is subject to axle weight limitations under section 169.824, subdivision 1;

(2) is subject to seasonal load restrictions under section 169.87;

(3) is subject to bridge load limits posted under section 169.84;

(4) may only be operated on paved streets and highways other than interstate highways;

(5) may not be operated with loads that exceed the manufacturer's gross vehicle weight rating as affixed to the vehicle, or other certification of gross vehicle weight rating complying with Code of Federal Regulations, title 49, sections 567.4 to 567.7;

(6) must be issued a permit from each road authority having jurisdiction over a road on which the vehicle is operated, if required;

(7) must comply with the requirements of section 169.851, subdivision 4; and

(8) must have brakes on all wheels.

(b) The percentage allowances for exceeding gross weights if transporting unfinished forest products under section 168.013, subdivision 3, paragraph (b), or for the first haul of unprocessed or raw farm products or unfinished forest products under section 168.013, subdivision 3, paragraph (d), clause (3), do not apply to a vehicle or combination of vehicles operated under this section.

(c) Notwithstanding paragraph (a), clause (4), a vehicle or combination of vehicles hauling fluid milk under a permit issued by the commissioner of transportation may also operate on interstate highways as provided under United States Code, title 23, section 127.

new text begin (d) A vehicle or combination of vehicles hauling crude soybean oil under this section may only be operated in this state to perform transportation between soybean processing facilities located in Mankato and Fairmont on: new text end

new text begin (1) a route on a county highway or county state-aid highway as approved by the county; new text end

new text begin (2) marked Trunk Highways 15, 30, and 60; and new text end

new text begin (3) marked U.S. Highway 169. new text end

Subd. 5.

Driving rules.

(a) An operator of a motorcycle must ride only upon a permanent and regular seat which is attached to the vehicle for that purpose. No other person may ride on a motorcycle, except that passengers may ride (1) upon a permanent and regular operator's seat if designed for two persons, (2) upon additional seats attached to or in the vehicle, or (3) in a sidecar attached to the vehicle. The operator of a motorcycle is prohibited from carrying passengers in a number in excess of the designed capacity of the motorcycle or sidecar attached to it. A passenger is prohibited from being carried in a position that interferes with the safe operation of the motorcycle or the view of the operator.

(b) No person may ride upon a motorcycle as a passenger unless the person can reach the footrests or floorboards with both feet.

(c) Except for passengers of sidecars, drivers and passengers of three-wheeled motorcycles, and persons in an autocycle, no person may operate or ride upon a motorcycle except while sitting astride the seat, facing forward, with one leg on either side of the motorcycle.

(d) No person may operate a motorcycle while carrying animals, packages, bundles, or other cargo that prevent the person from keeping both hands on the handlebars.

(e) Motorcycles may, with the consent of both drivers, be operated not more than two abreast in a single traffic lane if the vehicles fit safely within the designated space of the lane.

(f) Except under the conditions specified in paragraph (g), no person may operate a motorcycle:

(1) between lanes of moving or stationary vehicles headed in the same direction of travel;

(2) abreast of moving or stationary vehicles within the same traffic lane; or

(3) to overtake or pass another vehicle within the same traffic lane.

(g) A person may operate a motorcycle and overtake and pass another vehicle in the same direction of travel and within the same traffic lane if the motorcycle is operated:

(1) at not more than 25 miles per hour; and

(2) no more than 15 miles per hour over the speed of traffic in the relevant traffic lanes.

new text begin (h) For the purposes of paragraph (g), traffic lane does not include: new text end

new text begin (1) the approach, drive-through, or exit of a roundabout; new text end

new text begin (2) a school zone established under section 169.14, subdivision 5a; new text end

new text begin (3) a work zone where only a single travel lane is available for use; or new text end

new text begin (4) an on-ramp to a freeway or expressway with or without an active control device where moving or stationary vehicles are queued in one or more traffic lanes. new text end

deleted text begin (h)deleted text end new text begin (i)new text end Motor vehicles including motorcycles are entitled to the full use of a traffic lane and no motor vehicle may be driven or operated in a manner so as to deprive a motorcycle of the full use of a traffic lane.

deleted text begin (i)deleted text end new text begin (j)new text end A person operating a motorcycle upon a roadway must be granted the rights and is subject to the duties applicable to a motor vehicle as provided by law, except as to those provisions which by their nature can have no application.

deleted text begin (j)deleted text end new text begin (k)new text end Paragraphs (e) and (f) of this subdivision do not apply to police officers in the performance of their official duties.

deleted text begin (k)deleted text end new text begin (l)new text end No person may operate a motorcycle on a street or highway unless the headlight or headlights are lighted at all times the motorcycle is so operated.

deleted text begin (l)deleted text end new text begin (m)new text end A person parking a motorcycle on the roadway of a street or highway must:

(1) if parking in a marked parking space, park the motorcycle completely within the marked space; and

(2) park the motorcycle in such a way that the front of the motorcycle is pointed or angled toward the nearest lane of traffic to the extent practicable and necessary to allow the operator to (i) view any traffic in both directions of the street or highway without having to move the motorcycle into a lane of traffic and without losing balance or control of the motorcycle, and (ii) ride the motorcycle forward and directly into a lane of traffic when the lane is sufficiently clear of traffic.

Subdivision 1.

Person 18 or more years of age.

(a) Any person who is 18 or more years of age and who, except for a lack of instruction in operating a motor vehicle, would otherwise be qualified to obtain a class D driver's license under this chapterdeleted text begin ,deleted text end may apply for an instruction permitnew text begin ,new text end and the deleted text begin department shalldeleted text end new text begin commissioner mustnew text end issue the permit. The instruction permit entitles the applicant to drive a motor vehicle for which a class D license is valid upon the highways for a period of two years if the permit holder:

(1) has the permit in immediate possession; and

(2) is driving the vehicle while accompanied by an adult licensed driver who is actually occupying a seat beside the driver.

(b) Any license of a lower class may be used as an instruction permit to operate a vehicle requiring a higher class license for a period of deleted text begin six monthsdeleted text end new text begin one yearnew text end after passage of the written test or tests required for the higher class and when the licensee is accompanied by and receiving instruction from a holder of the appropriate higher class license. A copy of the record of examination taken for the higher class license must be carried by the driver while using the lower class license as an instruction permit.

Subd. 2.

Evidence; identity; date of birth.

(a) Only the following is satisfactory evidence of an applicant's identity and date of birth under section 171.06, subdivision 3, paragraph (b):

(1) a driver's license or identification card that:

(i) complies with all requirements of the REAL ID Act;

(ii) is not designated as temporary or limited term; and

(iii) is current or has been expired for five years or less;

(2) a valid, unexpired United States passport, including a passport booklet or passport card, issued by the United States Department of State;

(3) a certified copy of a birth certificate issued by a government bureau of vital statistics or equivalent agency in the applicant's state of birth, which must bear the raised or authorized seal of the issuing government entity;

(4) a consular report of birth abroad, certification of report of birth, or certification of birth abroad, issued by the United States Department of State, Form FS-240, Form DS-1350, or Form FS-545;

(5) a valid, unexpired permanent resident card issued by the United States Department of Homeland Security or the former Immigration and Naturalization Service of the United States Department of Justice, Form I-551. If the Form I-551 validity period has been automatically extended by the United States Department of Homeland Security, it is deemed unexpired, regardless of the expiration date listed;

(6) a foreign passport with an unexpired temporary I-551 stamp or a temporary I-551 printed notation on a machine-readable immigrant visa with a United States Department of Homeland Security admission stamp within the validity period;

(7) a United States Department of Homeland Security Form I-94 or Form I-94A with a photograph and an unexpired temporary I-551 stamp;

(8) a United States Department of State Form DS-232 with a United States Department of Homeland Security admission stamp and validity period;

(9) a certificate of naturalization issued by the United States Department of Homeland Security, Form N-550 or Form N-570;

(10) a certificate of citizenship issued by the United States Department of Homeland Security, Form N-560 or Form N-561;

(11) an unexpired employment authorization document issued by the United States Department of Homeland Security, Form I-766 or Form I-688B. If the Form I-766 validity period has been automatically extended by the United States Department of Homeland Security, it is deemed unexpired, regardless of the expiration date listed;

(12) a valid, unexpired passport issued by a foreign country and a valid, unexpired United States visa accompanied by documentation of the applicant's most recent lawful admittance into the United States;new text begin ornew text end

(13) a document as designated by the United States Department of Homeland Security under Code of Federal Regulations, title 6, part 37.11 (c)(1)(x)deleted text begin ;deleted text end new text begin .new text end

deleted text begin (14) a copy of the applicant's certificate of marriage certified by the issuing government jurisdiction; deleted text end

deleted text begin (15) a certified copy of a court order that specifies the applicant's name change; or deleted text end

deleted text begin (16) a certified copy of a divorce decree or dissolution of marriage that specifies the applicant's name change, issued by a court. deleted text end

(b) A document under paragraph (a) must be legible and unaltered.

Subd. 2.

Certain head wear permitted.

If an accident involving a head injury, serious illness, or treatment of the illness has resulted in hair loss new text begin or the need to maintain continuous coverage of the head or scalp with a medical covering new text end by an applicant for a driver's license or identification card, the commissioner deleted text begin shalldeleted text end new text begin mustnew text end permit the applicant to wear a hat or similar head wear new text begin or the covering new text end in the photograph or electronically produced image. The hatnew text begin , medically required covering,new text end or head wear must be of an appropriate size and type to allow identification of the holder of the license or card and must not obscure the holder's face.

Subdivision 1.

Examination subjects and locations; provisions for color blindness, disabled veterans.

(a) Except as otherwise provided in this section, the commissioner must examine each applicant for a driver's license by such agency as the commissioner directs. This examination must include:

(1) a test of the applicant's eyesight, provided that this requirement is met by submission of a vision examination certificate under section 171.06, subdivision 7;

(2) a test of the applicant's ability to read and understand highway signs regulating, warning, and directing traffic;

(3) a test of the applicant's knowledge ofnew text begin :new text end

(i) traffic laws;

(ii) the effects of alcohol and drugs on a driver's ability to operate a motor vehicle safely and legally, and of the legal penalties and financial consequences resulting from violations of laws prohibiting the operation of a motor vehicle while under the influence of alcohol or drugs;

(iii) railroad grade crossing safety;

(iv) slow-moving vehicle safety;

(v) laws relating to pupil transportation safety, including the significance of school bus lights, signals, stop arm, and passing a school bus;

(vi) traffic laws related to bicycles; deleted text begin anddeleted text end

(vii) the circumstances and dangers of carbon monoxide poisoning;new text begin andnew text end

new text begin (viii) work zone and road construction worker safety, including work zone speed limits, work zone markings, vehicle operation requirements in work zones, and the dangers of distracted driving in work zones; new text end

(4) an actual demonstration of ability to exercise ordinary and reasonable control in the operation of a motor vehicle; and

(5) other physical and mental examinations as the commissioner finds necessary to determine the applicant's fitness to operate a motor vehicle safely upon the highways.

(b) Notwithstanding paragraph (a), the commissioner must not deny an application for a driver's license based on the exclusive grounds that the applicant's eyesight is deficient in color perception or that the applicant has been diagnosed with diabetes mellitus. War veterans operating motor vehicles especially equipped for disabled persons, if otherwise entitled to a license, must be granted such license.

(c) The commissioner must ensure that an applicant may take an exam either in the county where the applicant resides or in an adjacent county at a reasonably convenient location. The schedule for each exam station must be posted on the department's website.

(d) The commissioner deleted text begin shalldeleted text end new text begin mustnew text end ensure that an applicant is able to obtain an appointment for an examination to demonstrate ability under paragraph (a), clause (4), within 14 days of the applicant's request if, under the applicable statutes and rules of the commissioner, the applicant is eligible to take the examination.

(e) The commissioner must provide real-time information on the department's website about the availability and location of exam appointments. The website must show the next available exam dates and times for each exam station. The website must also provide an option for a person to enter an address to see the date and time of the next available exam at each exam station sorted by distance from the address provided.

new text begin (f) The requirements under paragraph (a), clause (3), item (viii), apply on January 1, 2027, for examinations administered on or after that date. new text end

Subd. 7.

Examination fees.

(a) A fee of $10 must be paid by an individual to take a third and any subsequent knowledge test administered by the department if the individual has failed two previous consecutive knowledge tests on the subject.

(b) A fee of $20 must be paid by an individual to take a third and any subsequent skills or road test administered by the department if the individual has previously failed two consecutive skill or road tests in a specified class of motor vehicle.

(c) A fee of deleted text begin $20deleted text end new text begin $40new text end must be paid by an individual who fails to appear for a scheduled deleted text begin skills ordeleted text end road test or who cancels a deleted text begin skills ordeleted text end road test deleted text begin withindeleted text end new text begin less thannew text end 24 hours deleted text begin ofdeleted text end new text begin beforenew text end the appointment time.new text begin A fee of $20 must be paid by an individual who cancels a scheduled road test between 24 hours and 72 hours before the appointment time.new text end

(d) All fees received under this subdivision must be paid into the state treasury and credited to the driver and vehicle services operating account under section 299A.705.

Subd. 8.

Test scheduling.

The commissioner must not schedule or reserve recurring time with a public, private, or commercial driver education program for purposes of administering deleted text begin skills ordeleted text end road tests to a class D deleted text begin or commercialdeleted text end driver's license applicant.

Subdivision 1.

Offenses.

(a) The deleted text begin department shalldeleted text end new text begin commissioner mustnew text end immediately revoke the license of a driver upon receiving a record of the driver's conviction of:

(1) manslaughter resulting from the operation of a motor vehicle deleted text begin ordeleted text end new text begin under section 609.20 or 609.205;new text end

new text begin (2)new text end criminal vehicular homicide or injury under section 609.2112, 609.2113, or 609.2114, or Minnesota Statutes 2012, section 609.21;

deleted text begin (2)deleted text end new text begin (3)new text end a violation of section 169A.20 or 609.487;

deleted text begin (3)deleted text end new text begin (4)new text end a felony in the commission of which a motor vehicle was used;

deleted text begin (4)deleted text end new text begin (5)new text end failure to stop and disclose identity and render aid, as required under section 169.09, in the event of a motor vehicle accident, resulting in the death or personal injury of another;

deleted text begin (5)deleted text end new text begin (6)new text end perjury or the making of a false affidavit or statement to the deleted text begin departmentdeleted text end new text begin commissionernew text end under any law relating to the application, ownership, or operation of a motor vehicle, including on the certification required under section 171.05, subdivision 2, paragraph (a), clause (1), item (ii), subitem (C), to issue an instruction permit to a homeschool student;

deleted text begin (6)deleted text end new text begin (7)new text end except as this section otherwise provides, three charges of violating within a period of 12 months any of the provisions of chapter 169 or of the rules or municipal ordinances enacted in conformance with chapter 169, for which the accused may be punished upon conviction by imprisonment;

deleted text begin (7)deleted text end new text begin (8)new text end two or more violations, within five years, of the misdemeanor offense described in section 169.444, subdivision 2, paragraph (a);

deleted text begin (8)deleted text end new text begin (9)new text end the gross misdemeanor offense described in section 169.444, subdivision 2, paragraph (b);

deleted text begin (9)deleted text end new text begin (10)new text end an offense in another state that, if committed in this state, would be grounds for revoking the driver's license; or

deleted text begin (10)deleted text end new text begin (11)new text end a violation of an applicable speed limit by a person driving in excess of 100 miles per hour. The person's license must be revoked for six months for a violation of this clause, or for a longer minimum period of time applicable under section 169A.53, 169A.54, or 171.174.

(b) The deleted text begin department shalldeleted text end new text begin commissioner mustnew text end immediately revoke the school bus endorsement of a driver upon receiving a record of the driver's conviction of the misdemeanor offense described in section 169.443, subdivision 7.

Subdivision 1.

Establishment.

(a) A city or county may establish a license reinstatement diversion program for holders of class D drivers' licenses who have been charged with violating section 171.24, subdivision 1 or 2. An individual charged with driving after revocation under section 171.24, subdivision 2, is eligible for diversion only if the revocation was due to a violation of section 169.791; 169.797; 169A.52; 169A.54; 171.17, subdivision 1, paragraph (a), clause deleted text begin (6)deleted text end new text begin (7)new text end ; or 171.177. An individual who is a holder of a commercial driver's license or who has committed an offense in a commercial motor vehicle is not eligible to participate in the diversion program. Nothing in this section authorizes the issuance of a driver's license to a diversion program participant during the underlying suspension or revocation period at issue in the violation of section 171.24, subdivision 1 or 2.

(b) Notwithstanding any law or ordinance to the contrary, a city or county may contract with a third party to create and administer the diversion program under this section. Any participating city or county, at its own expense, may request an audit of the administrator.

(c) For purposes of this section, "administrator" means the city, county, or administrator of the program.

Subd. 5.

Expiration.

A reintegration driver's license expires deleted text begin 15deleted text end new text begin 24new text end months from the date of issuance of the license. A reintegration driver's license may not be renewed.

Subd. 6.

Issuance of regular driver's license.

(a) Notwithstanding any statute or rule to the contrary, the commissioner must issue a REAL ID-compliant or noncompliant license to a person who possesses a reintegration driver's license if:

(1) the person has possessed the reintegration driver's license for at least one full year;

(2) the reintegration driver's license has not been canceled under subdivision 4 and has not new text begin been new text end expired new text begin for more than 90 days from the date new text end under subdivision 5;

(3) the person meets the application requirements under section 171.06, including payment of the applicable fees, surcharge, and filing fee under sections 171.06, subdivisions 2 and 2a, and 171.061, subdivision 4; and

(4) issuance of the license does not conflict with the requirements of the nonresident violator compact.

(b) The commissioner must forgive any outstanding balance due on a reinstatement fee or surcharge under sections 171.20, subdivision 4, and 171.29, subdivision 2, for a person who is eligible and applies for a license under paragraph (a).

Subd. 8.

Rulemaking.

deleted text begin In establishingdeleted text end new text begin The commissioner must adoptnew text end the performance standards and certification process of subdivision 2deleted text begin ,deleted text end new text begin andnew text end the program guidelines of subdivision 3deleted text begin ,deleted text end new text begin as rulesnew text end and any other rules necessary to implement this section, deleted text begin the commissioner isdeleted text end subject to chapter 14.

Subd. 3.

Exceptions.

This section does not apply to:

(1) a law that establishes a requirement with general applicability for an agency or agencies to submit a report, including but not limited to reports and information under sections 14.05, subdivision 5, and 14.116;

(2) a law that specifies a reporting expiration date or a date for the submission of a final report;

(3) information required by law to be included in a budget submission to the legislature under section 16A.11;

(4) the plans required under section 174.03, subdivisions 1a, 1b, and 1c;

(5) the forecast information requirements under section 174.03, subdivision 9; and

(6) the reports required under sections 161.088, subdivision 7; 161.089; 161.3203, subdivision 4; 165.03, subdivision 8; 174.03, subdivision 12new text begin ; 174.065new text end ; 174.185, subdivision 3; 174.247; 174.56, subdivisions 1 and 2; and 174.75, subdivision 3.

Subd. 4.

Program administration.

(a) The commissioner must establish active transportation program requirements, including:

(1) assistance eligibility, subject to the requirements under subdivision 5;

(2) a solicitation and application process that minimizes the burden on applicants; and

(3) procedures to award and pay financial assistance.

(b) The commissioner must deleted text begin annuallydeleted text end conduct deleted text begin a solicitationdeleted text end new text begin solicitationsnew text end for active transportation projects under the program.

(c) The commissioner must make reasonable efforts to publicize each application solicitation among all eligible recipients. The commissioner must assist applicants to create and submit applications, with an emphasis on providing assistance in communities that are historically and currently underrepresented in local or regional planning, including communities of color, low-income households, people with disabilities, and people with limited English proficiency.

(d) The commissioner may provide grants or other financial assistance for a project.

(e) The commissioner is prohibited from expending more than one percent of available funds in a fiscal year under this section on program administration.

Subd. 6.

Metropolitan counties; use of funds.

(a) A metropolitan county must use funds that are received under subdivision deleted text begin 5deleted text end new text begin 3, clause (1),new text end as follows:

(1) 41.5 percent fornew text begin :new text end

new text begin (i)new text end active transportationnew text begin , as defined in section 174.38, subdivision 1;new text end and

new text begin (ii)new text end transportation corridor safety studies;

(2) 41.5 percent for:

(i) repair, preservation, and rehabilitation of transportation systems; and

(ii) roadway replacement to reconstruct, reclaim, or modernize a corridor without adding traffic capacity, except for auxiliary lanes with a length of less than 2,500 feet; and

(3) 17 percent for any of the following:

(i) transit purposes, including but not limited to operations, maintenance, capital maintenance, demand response service, and assistance to replacement service providers under section 473.388;

(ii) complete streets projects, as provided under section 174.75; and

(iii) projects, programs, or operations activities that meet the requirements of deleted text begin a mitigationdeleted text end new text begin an offsetnew text end action under section 161.178, subdivision 4.

(b) Funds under paragraph (a), clause (3), must supplement and not supplant existing sources of revenue.

(c) A metropolitan county may use funds that are received under subdivision 5 as debt service for obligations issued by the county in accordance with chapter 475, provided that the obligations are issued for a use allowable under this section.

Subd. 2.

Passenger rail account; transfers; appropriation.

(a) A passenger rail account is established in the special revenue fund. The account consists of funds as provided in this subdivision and any other money donated, allotted, transferred, collected, or otherwise provided to the account.

(b) By July 15 annually beginning in calendar year deleted text begin 2027deleted text end new text begin 2029new text end , the commissioner of revenue must transfer an amount from the general fund to the passenger rail account that equals 50 percent of the portion of the state general tax under section 275.025 levied on railroad operating property, as defined under section 273.13, subdivision 24, in the prior calendar year.

(c) Money in the account is annually appropriated to the commissioner of transportation for the operating and capital maintenance costs of intercity passenger rail, which may include but are not limited to planning, designing, developing, constructing, equipping, administering, operating, promoting, maintaining, and improving passenger rail service within the state, after accounting for operating revenue, federal funds, and other sources.

(d) By November 1 each year, the commissioner must report on the passenger rail account to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. The report must, at a minimum, include:

(1) the actual revenue and expenditures in each of the previous two fiscal years;

(2) the budgeted and forecasted revenue and expenditures in the current fiscal year and each fiscal year within the state forecast period;

(3) the plan for collection of fees and revenue, as defined and authorized under subdivision 3, in the current fiscal year and each fiscal year within the state forecast period; and

(4) the uses of expenditures or planned expenditures in each fiscal year included under clauses (1) and (2).

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

(b) "Electric-assisted bicycle" has the meaning given in section 169.011, subdivision 27, except that the term is limited to a new electric-assisted bicycle purchased from an eligible retailer.

(c) "Eligible expenses" means the amount paid for an electric-assisted bicycle and any qualifying accessories purchased at the same time as the electric-assisted bicycle, inclusive of sales tax but exclusive of any other related charges, including charges for a warranty, service, or delivery.

(d) "Eligible individual" means an individual who:

(1) is at least 15 years old;

(2) is a resident individual taxpayer at the time of application for a rebate certificate and in the new text begin two new text end previous calendar deleted text begin yeardeleted text end new text begin yearsnew text end ;

new text begin (3) has filed an income tax return for the two taxable years immediately preceding the calendar year in which the individual applies for a rebate certificate;new text end and

deleted text begin (3)deleted text end new text begin (4)new text end was not claimed as a dependent on another return in the taxable year described in subdivision 3, paragraph (c).

(e) "Eligible retailer" means a person who has engaged in the business of retail sales of new electric-assisted bicycles for at least six months prior to receiving the approval of the commissioner under subdivision 5.

(f) new text begin "Person with a disability" means a person who:new text end

new text begin (1) receives social security disability insurance benefits under United States Code, title 42, sections 401 to 434, or medical assistance for employed persons with disabilities under section 256B.057, subdivision 9; new text end

new text begin (2) is under the age of 65 and receives supplemental security income benefits under United States Code, title 42, sections 1381 to 1385; or new text end

new text begin (3) receives home and community-based disability waiver services under section 256B.092 or 256B.49. new text end

new text begin (g) new text end "Qualifying accessories" means a bicycle helmet, lights, lock, luggage rack, basket, bag or backpack, fenders, or reflective clothing.

Subd. 3.

Amount of rebate.

(a) The amount of a rebate under this section equals the lesser of:

(1) deleted text begin the applicable percentage, multiplied by the amountdeleted text end new text begin 75 percentnew text end of eligible expenses paid by an eligible individual; or

(2) deleted text begin $1,500deleted text end new text begin $750new text end .

deleted text begin (b) The applicable percentage equals 75 percent, but is reduced by one percentage point until the percentage equals 50 percent, for each $4,000 of the eligible individual's adjusted gross income in excess of: deleted text end

deleted text begin (1) $50,000 for a married taxpayer filing a joint return; and deleted text end

deleted text begin (2) $25,000 for all other filers. deleted text end

new text begin (b) Eligibility for a rebate under this section is limited to an eligible individual who either: new text end

new text begin (1) meets the income limitation for an eligible individual specified in paragraph (c); or new text end

new text begin (2) is a person with a disability. new text end

new text begin (c) The income limitation for an eligible individual under paragraph (b), clause (1), must not exceed: new text end

new text begin (1) $78,000 in the case of a married eligible individual who filed a joint return; new text end

new text begin (2) $62,000 for an individual who filed a return as a head of household; or new text end

new text begin (3) $41,000 for all other individuals. new text end

deleted text begin (c)deleted text end new text begin (d)new text end For the purposes of determining the deleted text begin applicable percentagedeleted text end new text begin income limitationnew text end under paragraph deleted text begin (b) and subdivision 4, paragraph (a)deleted text end new text begin (c)new text end , the commissioner must use the eligible individual's adjusted gross income for the taxable year ending in the calendar year prior to the year in which the individual applied for a rebate certificate.

Subd. 4.

Commissioner to issue rebate certificates.

(a) To qualify for a rebate under this section, an eligible individual must apply to the commissioner for a rebate certificate in the manner specified by the commissioner prior to purchasing an electric-assisted bicycle. As part of the application, the eligible individual must include proof of the individual's adjusted gross income for the taxable year specified in subdivision 3, paragraph deleted text begin (c)deleted text end new text begin (d)new text end . The commissioner must issue a rebate certificate to an eligible individual stating the issuance date, the applicable percentage, and the maximum rebate for which the taxpayer is eligible. For a married taxpayer filing a joint return, each spouse may apply to the commissioner separately, and the commissioner must issue each spouse a separate rebate certificate.

(b) The commissioner of revenue may determine the date on which to open applications for a rebate certificate, and applications must not be submitted before the date determined by the commissioner. Beginning July 1, 2024, and July 1 of each subsequent calendar year for which there is an allocation of rebate certificates, the commissioner must allocate rebate certificates deleted text begin on a first-come, first-served basis. The commissioner must reserve 40 percent of the certificates for a married taxpayer filing a joint return with an adjusted gross income of less than $78,000 or any other filer with an adjusted gross income of less than $41,000. Any portion of the reserved amount under this paragraph that is not allocated by September 30 is available for allocation to other rebate certificate applications beginning on October 1.deleted text end new text begin to applicants. If the number of total applicants exceeds the available allocation of rebate certificates, the commissioner must allocate certificates through a random lottery.new text end

(c) new text begin If a random lottery is used to allocate certificates as provided in paragraph (b), the commissioner must, by August 1, 2025, determine a suitable randomized method to allocate the certificates to eligible individuals and must:new text end

new text begin (1) detail the commissioner's anticipated timeline for the lottery, including when applications for the lottery by an applicant must be made and when the commissioner anticipates distributing the certificates; new text end

new text begin (2) establish a method for an applicant to apply for placement into the lottery; and new text end

new text begin (3) provide the amount of certificates available to be distributed by the commissioner. new text end

new text begin (d) new text end The commissioner must not issue rebate certificates totaling more than $2,000,000 in each of calendar years 2024 and 2025, except any amount authorized but not allocated in any calendar year does not cancel and is added to the allocation for the next calendar year. When calculating the amount of remaining allocations, the commissioner must assume that each allocated but unclaimed certificate reduces the available allocations by deleted text begin $1,500deleted text end new text begin $750new text end .

deleted text begin (d)deleted text end new text begin (e)new text end A rebate certificate that is not assigned to a retailer expires two months after the date the certificate was issued and may not be assigned to a retailer after expiration. The amount of any expired rebate certificates is added to the available allocation under paragraph deleted text begin (c)deleted text end new text begin (d)new text end .

Subd. 3.

Rules; administration and enforcement.

The commissioner may adopt rules relating to the administration and enforcement of laws regulating the sale, distribution, and use of petroleum productsnew text begin , electricity sold as vehicle fuel,new text end and special fuel. The rules shall be reasonable and consistent with the law.

Subd. 2.

Suspension of license.

(a) Notwithstanding subdivision 1, the license of a distributor, special fuel dealer, new text begin public charging station operator, new text end or bulk purchaser that has not filed a tax return or report or paid a delinquent tax or fee within five days after notice and demand by the commissioner is suspended. The suspension remains in effect until the demanded tax return or report has been filed and the tax and fees shown on that return or report have been paid. If the commissioner determines that the failure to file or failure to pay is due to reasonable cause, then a license must not be suspended, or if suspended, must be reinstated.

(b) A licensee whose license is suspended under this subdivision may request a contested case hearing under chapter 14. Any such hearing must be held within 20 days of the issuance of the notice and demand issued under paragraph (a), unless the parties agree to a later hearing date. The administrative law judge's report must be issued within 20 days after the close of the hearing record, unless the parties agree to a later report issuance date. The commissioner must issue a final decision within 30 days after receipt of the report of the administrative law judge and subsequent exceptions and argument under section 14.61. The suspension imposed under paragraph (a) remains in effect during any contested case hearing process requested pursuant to this paragraph.

Subd. 3.

Operating without license.

If any person operates as a distributor, special fuel dealer, bulk purchaser, new text begin public charging station operator, new text end or motor carrier without first securing the license required under this chapter, any tax or fee imposed by this chapter shall become immediately due and payable. A penalty of 25 percent is imposed upon the tax and fee due. The tax and fees shall bear interest at the rate specified in section 270C.40. The penalty imposed in this subdivision shall bear interest from the date provided in section 270C.40, subdivision 3, to the date of payment of the penalty.

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

(b) "Metropolitan area"new text begin and "metropolitan counties"new text end means the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

(c) "Metropolitan Council" or "council" means the Metropolitan Council established by section 473.123.

(d) "Regional transportation sales tax" means the regional transportation sales and use tax imposed under this section.

Subd. 4.

deleted text begin Depositdeleted text end new text begin Distributionnew text end .

new text begin (a) new text end Proceeds of the regional transportation sales tax must be allocated as follows:

(1) 83 percent to the Metropolitan Council for the purposes specified under section 473.4465new text begin , subdivisions 2 and 3, subject to section 473.39, subdivision 3anew text end ; and

(2) 17 percent to metropolitan countiesdeleted text begin , as defined in section 174.49, subdivision 1, in the manner provided under section 174.49, subdivision 5deleted text end new text begin for the purposes specified under section 473.4465, subdivision 4new text end .

new text begin (b) Funds under paragraph (a), clause (2), are appropriated to the commissioner of transportation for distribution to metropolitan counties as provided under section 174.49, subdivision 5. new text end

Subd. 2a.

Uses reporting.

deleted text begin By February 15 of each even-numbered year,deleted text end A metropolitan county, as defined in section 473.121, subdivision 4, that imposes the taxes under this section mustnew text begin annuallynew text end submit deleted text begin a report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and financedeleted text end new text begin financial information to the commissioner of transportation as provided under section 174.065 in the manner and by the dates prescribed by the commissionernew text end .

deleted text begin At a minimum, the report must include: deleted text end

deleted text begin (1) actual transportation sales tax collections by the county over the previous five calendar years; deleted text end

deleted text begin (2) an estimation of the total sales tax revenue that is estimated to be collected by the county in the current year and for the next ten calendar years; and deleted text end

deleted text begin (3) for each of the previous five calendar years, the current calendar year, and for the next ten calendar years: deleted text end

deleted text begin (i) the amount of sales tax revenue expended or proposed to be expended for each of the following: deleted text end

deleted text begin (A) planning, construction, operation, or maintenance of guideways, as defined in section 473.4485, subdivision 1, paragraph (d); deleted text end

deleted text begin (B) nonguideway transit and active transportation uses; deleted text end

deleted text begin (C) highway uses; and deleted text end

deleted text begin (D) uses not otherwise specified in subitems (A) to (C); deleted text end

deleted text begin (ii) completed, current, planned, and eligible projects for each category under item (i); and deleted text end

deleted text begin (iii) an estimated balance of unspent or undesignated county sales tax revenue. deleted text end

Subd. 2.

Railroad and pipeline safety account.

(a) A railroad and pipeline safety account is created in the special revenue fund. The account consists of funds collected under subdivision 4 and funds donated, allotted, transferred, or otherwise provided to the account.

deleted text begin (b) $560,000 is annually appropriated from the railroad and pipeline safety account to the commissioner of the Pollution Control Agency for environmental protection activities related to railroad discharge preparedness under chapter deleted text end deleted text begin 115E deleted text end deleted text begin . deleted text end

deleted text begin (c) $750,000 in fiscal year 2024 and $1,500,000 in each subsequent fiscal year are transferred from the railroad and pipeline safety account to the grade crossing safety account under section 219.1651. deleted text end

deleted text begin (d) Following the appropriation in paragraph (b) and the transfer in paragraph (c), the remaining money in the account is annually appropriated to the commissioner of public safety for the purposes specified in subdivision 3. deleted text end

deleted text begin (e)deleted text end new text begin (b)new text end By January 15, 2026, the commissioner of public safety must submit a report on the railroad and pipeline safety account to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. The report must list detailed revenues to and expenditures from the account for the previous two fiscal years and must include information on the purpose of each expenditure.

deleted text begin (f)deleted text end new text begin (c)new text end If the balance of the account at the end of a fiscal biennium is greater than $2,000,000, the amount above $2,000,000 must be transferred to the grade crossing safety account under section 219.1651.

Subd. 4.

Assessments.

(a) The commissioner of public safety must annually assess deleted text begin $4,000,000deleted text end new text begin $3,418,000new text end to railroad deleted text begin and pipelinedeleted text end companies deleted text begin based on the formula specified in paragraph (b). The commissioner must deposit funds collected under this subdivision in the railroad and pipeline safety account under subdivision 2.deleted text end

deleted text begin (b) The assessment for each railroad is 70 percent of the total annual assessment amountdeleted text end , divided in equal proportion deleted text begin betweendeleted text end new text begin amongnew text end applicable rail carriers based on route miles operated in Minnesota. deleted text begin The assessment for each pipeline company is 30 percent of the total annual assessment amountdeleted text end new text begin Of the amount collected annually under this paragraph:new text end

new text begin (1) $560,000 is deposited in the railroad and pipeline safety account and appropriated to the commissioner of the Pollution Control Agency for environmental protection activities related to railroad discharge preparedness under chapter 115E; new text end

new text begin (2) $1,500,000 is deposited in the grade crossing safety account under section 219.1651; and new text end

new text begin (3) the remainder is deposited in the railroad and pipeline safety account and appropriated to the commissioner of public safety for the purposes specified in subdivision 3. new text end

new text begin (b) The commissioner of public safety must annually assess $582,000 to pipeline companiesnew text end , divided in equal proportion deleted text begin betweendeleted text end new text begin amongnew text end companies based on the yearly aggregate gallons of oil and other hazardous substances transported by pipeline in Minnesota.new text begin Money collected under this paragraph is deposited in the railroad and pipeline safety account and appropriated to the commissioner of public safety for the purposes specified in subdivision 3.new text end

(c) In addition to the deleted text begin amountdeleted text end new text begin amountsnew text end identified in deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (a)new text begin and (b)new text end , the commissioner must assess the rail carrier or pipeline company involved in an incident compelling a significant response for all postincident review and analysis costs under subdivision 5 incurred by the state and local units of government. This paragraph applies regardless of whether an assessment is imposed under paragraph (a)new text begin or (b)new text end in a fiscal year.

Subd. 4.

Collector's aircraft.

(a) For purposes of this subdivision:

(1) "antique aircraft" means an aircraft constructed by the original manufacturer, or its licensee, on or before December 31, 1945, with the exception of certain pre-World War II aircraft models that had only a small postwar production, such as Beechcraft Staggerwing, Fairchild 24, and Monocoupe; and

(2) "classic aircraft" means an aircraft constructed by the original manufacturer, or its licensee, on or after January 1, 1946, and has a first year of life that precedes the date of registration by at least 50 years.

(b) If an antique or classic aircraft is owned and operated solely as a collector's item, its owner deleted text begin maydeleted text end new text begin mustnew text end list it for taxation and registration deleted text begin as followsdeleted text end new text begin and execute an electronic attestation or sworn affidavit statingnew text end : deleted text begin A sworn affidavit must be executed statingdeleted text end

(1) the name and address of the ownerdeleted text begin ,deleted text end new text begin ;new text end

(2) the name and address of the deleted text begin person from whom purchased,deleted text end new text begin seller;new text end

(3) the aircraft's make, year, model number, federal aircraft registration number, and manufacturer's identification numberdeleted text begin ,deleted text end new text begin ;new text end and

(4) that the aircraft is owned and operated solely as a collector's item and not for general transportation or commercial operations purposes.

The new text begin electronic attestation or sworn new text end affidavit must be deleted text begin filed withdeleted text end new text begin submitted tonew text end the commissioner along with a fee of $25.

(c) Upon satisfaction that the new text begin electronic attestation or sworn new text end affidavit is true and correct, the commissioner deleted text begin shalldeleted text end new text begin mustnew text end issue deleted text begin to the applicantdeleted text end a registration certificatenew text begin to the applicantnew text end . The registration certificate is valid without renewal as long as the owner operates the aircraft solely as a collector's item.

(d) deleted text begin Shoulddeleted text end new text begin Ifnew text end an antique or classic aircraft deleted text begin bedeleted text end new text begin isnew text end operated other than as a collector's item, the registration certificate becomes void and the owner deleted text begin shalldeleted text end new text begin mustnew text end list the aircraft for taxation and registration deleted text begin in accordance with the other provisions ofdeleted text end new text begin undernew text end sections 360.511 to 360.67.

(e) Upon the sale of an antique or classic aircraft, the new owner must list the aircraft for taxation and registration in accordance with this subdivision, including the payment of a $5 fee to transfer the registration to the new owner, deleted text begin or the other provisions ofdeleted text end new text begin undernew text end sections 360.511 to 360.67, whichever is applicable.

Subd. 4a.

Recreational aircraft; classic license.

(a) An aircraft that has a base price for tax purposes under section 360.531 of $10,000 or lessdeleted text begin ,deleted text end and deleted text begin thatdeleted text end is owned and operated solely for recreational purposesdeleted text begin ,deleted text end may be listed for taxation and registration by executing deleted text begin adeleted text end new text begin an electronic attestation ornew text end sworn affidavit statingnew text begin :new text end

(1) the name and address of the ownerdeleted text begin ,deleted text end new text begin ;new text end

(2) the name and address of the deleted text begin person from whom purchased,deleted text end new text begin seller;new text end

(3) the aircraft's make, year, model number, federal aircraft registration number, and manufacturer's identification numberdeleted text begin ,deleted text end new text begin ;new text end and

(4) that the aircraft is owned and operated solely as a recreational aircraft and not for commercial operational purposes.

The new text begin electronic attestation or sworn new text end affidavit must be deleted text begin filed withdeleted text end new text begin submitted tonew text end the commissioner along with an annual $25 fee.