Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1140 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to transportation; imposing a road usage charge for all-electric vehicles;
3	3	1.3 requiring a report; appropriating money; amending Minnesota Statutes 2024,
4	4	1.4 sections 13.6905, by adding a subdivision; 168.002, by adding a subdivision;
5	5	1.5 168.013, subdivision 1m; proposing coding for new law in Minnesota Statutes,
6	6	1.6 chapter 168.
7	7	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8	1.8 Section 1. Minnesota Statutes 2024, section 13.6905, is amended by adding a subdivision
9	9	1.9to read:
10	10	1.10 Subd. 39.Road usage charge data.Data related to road usage charges are governed
11	11	1.11by section 168.0132.
12	12	1.12 Sec. 2. Minnesota Statutes 2024, section 168.002, is amended by adding a subdivision to
13	13	1.13read:
14	14	1.14 Subd. 1a.All-electric vehicle."All-electric vehicle" has the meaning given in section
15	15	1.15169.011, subdivision 1a.
16	16	1.16 Sec. 3. Minnesota Statutes 2024, section 168.013, subdivision 1m, is amended to read:
17	17	1.17 Subd. 1m.Electric vehicle.(a) In addition to the tax under subdivision 1a, a surcharge
18	18	1.18of $75 is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a.
19	19	1.19Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision must
20	20	1.20be deposited in the highway user tax distribution fund.
21	21	1.21 (b) This subdivision applies to a registration period starting on or before June 30, 2026.
22	22	1Sec. 3.
23	23	REVISOR KRB/MI 25-0161801/07/25
24	24	State of Minnesota
25	25	This Document can be made available
26	26	in alternative formats upon request
27	27	HOUSE OF REPRESENTATIVES
28	28	H. F. No. 1140
29	29	NINETY-FOURTH SESSION 2.1 Sec. 4. [168.0132] ROAD USAGE CHARGE.
30	30	2.2 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
31	31	2.3the meanings given.
32	32	2.4 (b) "Account provider" means a person, firm, corporation, or partnership of firms or
33	33	2.5corporations that performs road usage charge management for enrolled vehicle owners and
34	34	2.6usage charge calculation under an agreement with the commissioner.
35	35	2.7 (c) "Adjustment rate" means $0.065.
36	36	2.8 (d) "Analogous fuel economy" means distance traveled by a motor vehicle as it relates
37	37	2.9to fuel consumed by the vehicle, in miles per gallon, that applies for a specific vehicle
38	38	2.10classification and model year.
39	39	2.11 Subd. 2.Usage charge.(a) The owner of an all-electric vehicle must pay a road usage
40	40	2.12charge. The usage charge is in addition to the tax under section 168.013, subdivision 1a.
41	41	2.13The commissioner must impose the usage charge continuously for each registration period,
42	42	2.14using the relevant calculation under paragraph (b), (c), or both.
43	43	2.15 (b) For a billing period in which account management is active for a vehicle, the usage
44	44	2.16charge is calculated as:
45	45	2.17 (1) the miles traveled by the vehicle within Minnesota over the billing period; multiplied
46	46	2.18by
47	47	2.19 (2) the ratio that the total excise tax rate for gasoline under section 296A.07, including
48	48	2.20the surcharge rate under section 296A.083, bears to the analogous fuel economy, as
49	49	2.21determined in subdivision 3.
50	50	2.22 (c) For a billing period in which paragraph (b) does not apply, the usage charge is
51	51	2.23calculated as:
52	52	2.24 (1) the estimated average daily vehicle miles traveled per vehicle in Minnesota multiplied
53	53	2.25by the number of days in the billing period; multiplied by
54	54	2.26 (2) the total excise tax rate for gasoline under section 296A.07, including the surcharge
55	55	2.27rate under section 296A.083, divided by the analogous fuel economy, as determined in
56	56	2.28subdivision 3; plus
57	57	2.29 (3) the adjustment rate multiplied by the number of days in the billing period.
58	58	2.30 (d) The total road usage charge to an enrolled vehicle owner calculated in paragraph (b)
59	59	2.31for an entire vehicle registration period must not exceed the total that would otherwise apply
60	60	2.32under a corresponding calculation in paragraph (c).
61	61	2Sec. 4.
62	62	REVISOR KRB/MI 25-0161801/07/25 3.1 (e) The commissioner must estimate average daily vehicle miles traveled under paragraph
63	63	3.2(c), clause (1), in consultation with the commissioner of transportation, using the most
64	64	3.3recently available year of data.
65	65	3.4 Subd. 3.Analogous fuel economy.In consultation with the commissioner of
66	66	3.5transportation, the commissioner must determine analogous fuel economy for each vehicle
67	67	3.6subject to the usage charge under this section. The commissioner must use federal data on
68	68	3.7automotive trends maintained by the United States Environmental Protection Agency, and
69	69	3.8the determination must be based on:
70	70	3.9 (1) the vehicle classification that applies to the vehicle from among the following types
71	71	3.10or successor types as specified by the Environmental Protection Agency: sedan/wagon, car
72	72	3.11sport utility vehicle, truck sport utility vehicle, minivan/van, or pickup; and
73	73	3.12 (2) for the relevant vehicle classification, the final estimated real-world fuel economy,
74	74	3.13in miles per gallon, for the year matching the model year of the vehicle, or if that data is
75	75	3.14unavailable, for the year prior to the model year of the vehicle. To the extent feasible, the
76	76	3.15estimate under this clause must exclude all-electric vehicles.
77	77	3.16 Subd. 4.Road usage charge management agreement.(a) The commissioner must
78	78	3.17enter into an agreement with one or more account providers to perform road usage charge
79	79	3.18management. Each agreement must specify:
80	80	3.19 (1) account provider responsibility to enroll vehicle owners in usage charge management;
81	81	3.20 (2) road usage charge calculations and verification;
82	82	3.21 (3) designated responsibility for road usage charge billing, collections, and remittance,
83	83	3.22which may be performed by the commissioner, the account provider, or a combination of
84	84	3.23both;
85	85	3.24 (4) policies to determine whether road usage charge management is active for a vehicle;
86	86	3.25 (5) policies on prepayment, account balance minimum, and balance replenishment;
87	87	3.26 (6) audit activity, which must include providing for revising prior usage charges based
88	88	3.27on submitted odometer information;
89	89	3.28 (7) account provider responsibility for customer service;
90	90	3.29 (8) road usage charge information that is available to each enrolled vehicle owner, which
91	91	3.30must include vehicle miles traveled over each billing period and an overview of usage charge
92	92	3.31calculation;
93	93	3.32 (9) requirements governing terms and conditions for enrolled vehicle owners; and
94	94	3Sec. 4.
95	95	REVISOR KRB/MI 25-0161801/07/25 4.1 (10) standards for data security.
96	96	4.2 (b) The commissioner may award a contract for purposes of this subdivision under the
97	97	4.3best value method of contracting in conformance with chapter 16C.
98	98	4.4 Subd. 5.Account providers; implementation capability.(a) An account provider must
99	99	4.5be capable of accurately identifying miles traveled by the vehicle within Minnesota, whether
100	100	4.6from data supplied by a vehicle manufacturer or through a device that is affixed to the
101	101	4.7vehicle and transmits geolocation information.
102	102	4.8 (b) An account provider must have a reasonable anticipated capacity to implement, in
103	103	4.9the future, identification of vehicle miles traveled during specific times of day, over specific
104	104	4.10road segments, within managed lanes, and in a combination of these situations.
105	105	4.11 Subd. 6.Account providers; data practices.(a) An account provider must share with
106	106	4.12the commissioner the following data on an enrolled vehicle owner:
107	107	4.13 (1) data on the vehicle owner and the vehicle sufficient to identify the appropriate
108	108	4.14matching records in the driver and vehicle services information systems;
109	109	4.15 (2) the billing period; and
110	110	4.16 (3) the calculated usage charge amount.
111	111	4.17 (b) An account provider must submit the data listed in paragraph (a) electronically in
112	112	4.18the manner and by the dates specified by the commissioner.
113	113	4.19 (c) An account provider must not share with the commissioner, and the commissioner
114	114	4.20must not otherwise obtain from an account provider, geolocation data for a specifically
115	115	4.21identifiable vehicle.
116	116	4.22 (d) An account provider must not share or disseminate data on an enrolled vehicle owner
117	117	4.23with an entity other than the commissioner, except pursuant to a court order.
118	118	4.24 (e) Nothing in this subdivision prevents an account provider from sharing or disseminating
119	119	4.25summary data, as defined in section 13.02, subdivision 19.
120	120	4.26 (f) Services provided by an account provider under this section are not a government
121	121	4.27function for purposes of section 13.05, subdivision 11.
122	122	4.28 (g) An account provider's agreement with the commissioner is subject to section 13.05,
123	123	4.29subdivision 6.
124	124	4.30 Subd. 7.Odometer data.A manufacturer of a new motor vehicle sold or offered for
125	125	4.31sale within this state must provide access for vehicle mileage and odometer data to an
126	126	4Sec. 4.
127	127	REVISOR KRB/MI 25-0161801/07/25 5.1account provider for purposes of this section, following authorization by the vehicle owner
128	128	5.2or lessee. The access must be provided through an application programming interface or
129	129	5.3other similar information technology.
130	130	5.4 Subd. 8.Deposit of revenue; appropriation.(a) Notwithstanding section 168.013,
131	131	5.5subdivision 8, revenue collected by the commissioner under this section must be deposited
132	132	5.6as follows:
133	133	5.7 (1) 11 percent in the driver and vehicle services operating account; and
134	134	5.8 (2) the remainder in the highway user tax distribution fund.
135	135	5.9 (b) The amount deposited in the driver and vehicle services operating account under this
136	136	5.10subdivision is appropriated to the commissioner for payments to account providers and
137	137	5.11administrative costs under this section incurred by the commissioner.
138	138	5.12 Subd. 9.Legislative report.(a) By November 15 annually, the commissioner must
139	139	5.13submit a report to the chairs and ranking minority members of the legislative committees
140	140	5.14with jurisdiction over transportation policy and finance concerning the road usage charge.
141	141	5.15At a minimum, the report must:
142	142	5.16 (1) provide an implementation overview, including enrollment activity and vehicle miles
143	143	5.17traveled;
144	144	5.18 (2) summarize the agreement with each account provider, including information on each
145	145	5.19of the specified areas identified under subdivision 5, paragraph (a);
146	146	5.20 (3) review road usage charge finances, including total annual collections, appropriations
147	147	5.21under subdivision 8, analogous fuel economy amounts, and average daily vehicle miles
148	148	5.22traveled estimates; and
149	149	5.23 (4) make recommendations, if any, on legislative changes to road usage charge
150	150	5.24requirements.
151	151	5.25 (b) This subdivision expires June 30, 2031.
152	152	5.26 EFFECTIVE DATE.This section is effective July 1, 2026, and applies to a registration
153	153	5.27period starting on or after that date.
154	154	5.28 Sec. 5. ROAD USAGE CHARGE; PHASE-IN.
155	155	5.29 (a) For a road usage charge under Minnesota Statutes, section 168.0132, imposed in a
156	156	5.30billing period that starts on or after July 1, 2026, and before July 1, 2027:
157	157	5Sec. 5.
158	158	REVISOR KRB/MI 25-0161801/07/25 6.1 (1) the amounts calculated under subdivision 2, paragraph (b), clause (2), and subdivision
159	159	6.22, paragraph (c), clause (2), are multiplied by 0.6; and
160	160	6.3 (2) the adjustment rate is multiplied by 0.6.
161	161	6.4 (b) For a road usage charge under Minnesota Statutes, section 168.0132, imposed in a
162	162	6.5billing period that starts on or after July 1, 2027, and before July 1, 2028:
163	163	6.6 (1) the amounts calculated under subdivision 2, paragraph (b), clause (2), and subdivision
164	164	6.72, paragraph (c), clause (2), are multiplied by 0.8; and
165	165	6.8 (2) the adjustment rate is multiplied by 0.8.
166	166	6.9 EFFECTIVE DATE.This section is effective July 1, 2026, and applies to a registration
167	167	6.10period starting on or after that date.
168	168	6.11 Sec. 6. APPROPRIATION; ROAD USAGE CHARGE.
169	169	6.12 $....... in fiscal year 2026 is appropriated from the driver and vehicle services operating
170	170	6.13account in the special revenue fund to the commissioner of public safety for administrative
171	171	6.14costs to implement the road usage charge under Minnesota Statutes, section 168.0132. This
172	172	6.15is a onetime appropriation and is available until June 30, 2028.
173	173	6Sec. 6.
174	174	REVISOR KRB/MI 25-0161801/07/25