| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to transportation; imposing a road usage charge for all-electric vehicles; |
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| 3 | 3 | | 1.3 requiring a report; appropriating money; amending Minnesota Statutes 2024, |
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| 4 | 4 | | 1.4 sections 13.6905, by adding a subdivision; 168.002, by adding a subdivision; |
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| 5 | 5 | | 1.5 168.013, subdivision 1m; proposing coding for new law in Minnesota Statutes, |
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| 6 | 6 | | 1.6 chapter 168. |
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| 7 | 7 | | 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 8 | 8 | | 1.8 Section 1. Minnesota Statutes 2024, section 13.6905, is amended by adding a subdivision |
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| 9 | 9 | | 1.9to read: |
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| 10 | 10 | | 1.10 Subd. 39.Road usage charge data.Data related to road usage charges are governed |
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| 11 | 11 | | 1.11by section 168.0132. |
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| 12 | 12 | | 1.12 Sec. 2. Minnesota Statutes 2024, section 168.002, is amended by adding a subdivision to |
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| 13 | 13 | | 1.13read: |
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| 14 | 14 | | 1.14 Subd. 1a.All-electric vehicle."All-electric vehicle" has the meaning given in section |
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| 15 | 15 | | 1.15169.011, subdivision 1a. |
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| 16 | 16 | | 1.16 Sec. 3. Minnesota Statutes 2024, section 168.013, subdivision 1m, is amended to read: |
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| 17 | 17 | | 1.17 Subd. 1m.Electric vehicle.(a) In addition to the tax under subdivision 1a, a surcharge |
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| 18 | 18 | | 1.18of $75 is imposed for an all-electric vehicle, as defined in section 169.011, subdivision 1a. |
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| 19 | 19 | | 1.19Notwithstanding subdivision 8, revenue from the fee imposed under this subdivision must |
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| 20 | 20 | | 1.20be deposited in the highway user tax distribution fund. |
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| 21 | 21 | | 1.21 (b) This subdivision applies to a registration period starting on or before June 30, 2026. |
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| 22 | 22 | | 1Sec. 3. |
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| 32 | 31 | | 2.2 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have |
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| 33 | 32 | | 2.3the meanings given. |
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| 34 | 33 | | 2.4 (b) "Account provider" means a person, firm, corporation, or partnership of firms or |
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| 35 | 34 | | 2.5corporations that performs road usage charge management for enrolled vehicle owners and |
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| 36 | 35 | | 2.6usage charge calculation under an agreement with the commissioner. |
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| 37 | 36 | | 2.7 (c) "Adjustment rate" means $0.065. |
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| 38 | 37 | | 2.8 (d) "Analogous fuel economy" means distance traveled by a motor vehicle as it relates |
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| 39 | 38 | | 2.9to fuel consumed by the vehicle, in miles per gallon, that applies for a specific vehicle |
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| 40 | 39 | | 2.10classification and model year. |
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| 41 | 40 | | 2.11 Subd. 2.Usage charge.(a) The owner of an all-electric vehicle must pay a road usage |
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| 42 | 41 | | 2.12charge. The usage charge is in addition to the tax under section 168.013, subdivision 1a. |
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| 43 | 42 | | 2.13The commissioner must impose the usage charge continuously for each registration period, |
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| 44 | 43 | | 2.14using the relevant calculation under paragraph (b), (c), or both. |
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| 45 | 44 | | 2.15 (b) For a billing period in which account management is active for a vehicle, the usage |
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| 46 | 45 | | 2.16charge is calculated as: |
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| 47 | 46 | | 2.17 (1) the miles traveled by the vehicle within Minnesota over the billing period; multiplied |
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| 48 | 47 | | 2.18by |
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| 49 | 48 | | 2.19 (2) the ratio that the total excise tax rate for gasoline under section 296A.07, including |
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| 50 | 49 | | 2.20the surcharge rate under section 296A.083, bears to the analogous fuel economy, as |
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| 51 | 50 | | 2.21determined in subdivision 3. |
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| 52 | 51 | | 2.22 (c) For a billing period in which paragraph (b) does not apply, the usage charge is |
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| 53 | 52 | | 2.23calculated as: |
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| 54 | 53 | | 2.24 (1) the estimated average daily vehicle miles traveled per vehicle in Minnesota multiplied |
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| 55 | 54 | | 2.25by the number of days in the billing period; multiplied by |
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| 56 | 55 | | 2.26 (2) the total excise tax rate for gasoline under section 296A.07, including the surcharge |
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| 57 | 56 | | 2.27rate under section 296A.083, divided by the analogous fuel economy, as determined in |
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| 58 | 57 | | 2.28subdivision 3; plus |
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| 59 | 58 | | 2.29 (3) the adjustment rate multiplied by the number of days in the billing period. |
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| 60 | 59 | | 2.30 (d) The total road usage charge to an enrolled vehicle owner calculated in paragraph (b) |
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| 61 | 60 | | 2.31for an entire vehicle registration period must not exceed the total that would otherwise apply |
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| 62 | 61 | | 2.32under a corresponding calculation in paragraph (c). |
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| 63 | 62 | | 2Sec. 4. |
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| 65 | 64 | | 3.2(c), clause (1), in consultation with the commissioner of transportation, using the most |
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| 66 | 65 | | 3.3recently available year of data. |
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| 67 | 66 | | 3.4 Subd. 3.Analogous fuel economy.In consultation with the commissioner of |
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| 68 | 67 | | 3.5transportation, the commissioner must determine analogous fuel economy for each vehicle |
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| 69 | 68 | | 3.6subject to the usage charge under this section. The commissioner must use federal data on |
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| 70 | 69 | | 3.7automotive trends maintained by the United States Environmental Protection Agency, and |
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| 71 | 70 | | 3.8the determination must be based on: |
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| 72 | 71 | | 3.9 (1) the vehicle classification that applies to the vehicle from among the following types |
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| 73 | 72 | | 3.10or successor types as specified by the Environmental Protection Agency: sedan/wagon, car |
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| 74 | 73 | | 3.11sport utility vehicle, truck sport utility vehicle, minivan/van, or pickup; and |
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| 75 | 74 | | 3.12 (2) for the relevant vehicle classification, the final estimated real-world fuel economy, |
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| 76 | 75 | | 3.13in miles per gallon, for the year matching the model year of the vehicle, or if that data is |
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| 77 | 76 | | 3.14unavailable, for the year prior to the model year of the vehicle. To the extent feasible, the |
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| 78 | 77 | | 3.15estimate under this clause must exclude all-electric vehicles. |
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| 79 | 78 | | 3.16 Subd. 4.Road usage charge management agreement.(a) The commissioner must |
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| 80 | 79 | | 3.17enter into an agreement with one or more account providers to perform road usage charge |
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| 81 | 80 | | 3.18management. Each agreement must specify: |
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| 82 | 81 | | 3.19 (1) account provider responsibility to enroll vehicle owners in usage charge management; |
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| 83 | 82 | | 3.20 (2) road usage charge calculations and verification; |
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| 84 | 83 | | 3.21 (3) designated responsibility for road usage charge billing, collections, and remittance, |
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| 85 | 84 | | 3.22which may be performed by the commissioner, the account provider, or a combination of |
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| 86 | 85 | | 3.23both; |
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| 87 | 86 | | 3.24 (4) policies to determine whether road usage charge management is active for a vehicle; |
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| 88 | 87 | | 3.25 (5) policies on prepayment, account balance minimum, and balance replenishment; |
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| 89 | 88 | | 3.26 (6) audit activity, which must include providing for revising prior usage charges based |
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| 90 | 89 | | 3.27on submitted odometer information; |
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| 91 | 90 | | 3.28 (7) account provider responsibility for customer service; |
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| 92 | 91 | | 3.29 (8) road usage charge information that is available to each enrolled vehicle owner, which |
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| 93 | 92 | | 3.30must include vehicle miles traveled over each billing period and an overview of usage charge |
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| 94 | 93 | | 3.31calculation; |
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| 95 | 94 | | 3.32 (9) requirements governing terms and conditions for enrolled vehicle owners; and |
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| 96 | 95 | | 3Sec. 4. |
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| 98 | 97 | | 4.2 (b) The commissioner may award a contract for purposes of this subdivision under the |
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| 99 | 98 | | 4.3best value method of contracting in conformance with chapter 16C. |
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| 100 | 99 | | 4.4 Subd. 5.Account providers; implementation capability.(a) An account provider must |
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| 101 | 100 | | 4.5be capable of accurately identifying miles traveled by the vehicle within Minnesota, whether |
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| 102 | 101 | | 4.6from data supplied by a vehicle manufacturer or through a device that is affixed to the |
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| 103 | 102 | | 4.7vehicle and transmits geolocation information. |
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| 104 | 103 | | 4.8 (b) An account provider must have a reasonable anticipated capacity to implement, in |
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| 105 | 104 | | 4.9the future, identification of vehicle miles traveled during specific times of day, over specific |
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| 106 | 105 | | 4.10road segments, within managed lanes, and in a combination of these situations. |
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| 107 | 106 | | 4.11 Subd. 6.Account providers; data practices.(a) An account provider must share with |
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| 108 | 107 | | 4.12the commissioner the following data on an enrolled vehicle owner: |
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| 109 | 108 | | 4.13 (1) data on the vehicle owner and the vehicle sufficient to identify the appropriate |
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| 110 | 109 | | 4.14matching records in the driver and vehicle services information systems; |
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| 111 | 110 | | 4.15 (2) the billing period; and |
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| 112 | 111 | | 4.16 (3) the calculated usage charge amount. |
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| 113 | 112 | | 4.17 (b) An account provider must submit the data listed in paragraph (a) electronically in |
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| 114 | 113 | | 4.18the manner and by the dates specified by the commissioner. |
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| 115 | 114 | | 4.19 (c) An account provider must not share with the commissioner, and the commissioner |
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| 116 | 115 | | 4.20must not otherwise obtain from an account provider, geolocation data for a specifically |
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| 117 | 116 | | 4.21identifiable vehicle. |
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| 118 | 117 | | 4.22 (d) An account provider must not share or disseminate data on an enrolled vehicle owner |
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| 119 | 118 | | 4.23with an entity other than the commissioner, except pursuant to a court order. |
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| 120 | 119 | | 4.24 (e) Nothing in this subdivision prevents an account provider from sharing or disseminating |
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| 121 | 120 | | 4.25summary data, as defined in section 13.02, subdivision 19. |
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| 122 | 121 | | 4.26 (f) Services provided by an account provider under this section are not a government |
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| 123 | 122 | | 4.27function for purposes of section 13.05, subdivision 11. |
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| 124 | 123 | | 4.28 (g) An account provider's agreement with the commissioner is subject to section 13.05, |
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| 125 | 124 | | 4.29subdivision 6. |
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| 126 | 125 | | 4.30 Subd. 7.Odometer data.A manufacturer of a new motor vehicle sold or offered for |
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| 127 | 126 | | 4.31sale within this state must provide access for vehicle mileage and odometer data to an |
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| 128 | 127 | | 4Sec. 4. |
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| 132 | | - | 5.4 Subd. 8.Deposit of revenue.The proceeds from the usage charge imposed and collected |
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| 133 | | - | 5.5by the commissioner under this section must be deposited in the highway user tax distribution |
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| 134 | | - | 5.6fund under section 161.045. |
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| 135 | | - | 5.7 Subd. 9.Legislative report.(a) By November 15 annually, the commissioner must |
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| 136 | | - | 5.8submit a report to the chairs and ranking minority members of the legislative committees |
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| 137 | | - | 5.9with jurisdiction over transportation policy and finance concerning the road usage charge. |
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| 138 | | - | 5.10At a minimum, the report must: |
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| 139 | | - | 5.11 (1) provide an implementation overview, including enrollment activity and vehicle miles |
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| 140 | | - | 5.12traveled; |
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| 141 | | - | 5.13 (2) summarize the agreement with each account provider, including information on each |
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| 142 | | - | 5.14of the specified areas identified under subdivision 5, paragraph (a); |
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| 143 | | - | 5.15 (3) review road usage charge finances, including total annual collections, revenue |
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| 144 | | - | 5.16collected and deposited in the highway user tax distribution fund under subdivision 8, |
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| 145 | | - | 5.17analogous fuel economy amounts, and average daily vehicle miles traveled estimates; and |
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| 146 | | - | 5.18 (4) make recommendations, if any, on legislative changes to road usage charge |
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| 147 | | - | 5.19requirements. |
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| 148 | | - | 5.20 (b) This subdivision expires June 30, 2031. |
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| 149 | | - | 5.21 EFFECTIVE DATE.This section is effective July 1, 2026, and applies to a registration |
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| 150 | | - | 5.22period starting on or after that date. |
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| 151 | | - | 5.23 Sec. 5. ROAD USAGE CHARGE; PHASE-IN. |
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| 152 | | - | 5.24 (a) For a road usage charge under Minnesota Statutes, section 168.0132, imposed in a |
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| 153 | | - | 5.25billing period that starts on or after July 1, 2026, and before July 1, 2027: |
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| 154 | | - | 5.26 (1) the amounts calculated under subdivision 2, paragraph (b), clause (2), and subdivision |
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| 155 | | - | 5.272, paragraph (c), clause (2), are multiplied by 0.6; and |
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| 156 | | - | 5.28 (2) the adjustment rate is multiplied by 0.6. |
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| 157 | | - | 5.29 (b) For a road usage charge under Minnesota Statutes, section 168.0132, imposed in a |
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| 158 | | - | 5.30billing period that starts on or after July 1, 2027, and before July 1, 2028: |
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| 131 | + | 5.4 Subd. 8.Deposit of revenue; appropriation.(a) Notwithstanding section 168.013, |
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| 132 | + | 5.5subdivision 8, revenue collected by the commissioner under this section must be deposited |
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| 133 | + | 5.6as follows: |
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| 134 | + | 5.7 (1) 11 percent in the driver and vehicle services operating account; and |
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| 135 | + | 5.8 (2) the remainder in the highway user tax distribution fund. |
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| 136 | + | 5.9 (b) The amount deposited in the driver and vehicle services operating account under this |
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| 137 | + | 5.10subdivision is appropriated to the commissioner for payments to account providers and |
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| 138 | + | 5.11administrative costs under this section incurred by the commissioner. |
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| 139 | + | 5.12 Subd. 9.Legislative report.(a) By November 15 annually, the commissioner must |
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| 140 | + | 5.13submit a report to the chairs and ranking minority members of the legislative committees |
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| 141 | + | 5.14with jurisdiction over transportation policy and finance concerning the road usage charge. |
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| 142 | + | 5.15At a minimum, the report must: |
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| 143 | + | 5.16 (1) provide an implementation overview, including enrollment activity and vehicle miles |
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| 144 | + | 5.17traveled; |
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| 145 | + | 5.18 (2) summarize the agreement with each account provider, including information on each |
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| 146 | + | 5.19of the specified areas identified under subdivision 5, paragraph (a); |
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| 147 | + | 5.20 (3) review road usage charge finances, including total annual collections, appropriations |
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| 148 | + | 5.21under subdivision 8, analogous fuel economy amounts, and average daily vehicle miles |
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| 149 | + | 5.22traveled estimates; and |
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| 150 | + | 5.23 (4) make recommendations, if any, on legislative changes to road usage charge |
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| 151 | + | 5.24requirements. |
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| 152 | + | 5.25 (b) This subdivision expires June 30, 2031. |
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| 153 | + | 5.26 EFFECTIVE DATE.This section is effective July 1, 2026, and applies to a registration |
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| 154 | + | 5.27period starting on or after that date. |
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| 155 | + | 5.28 Sec. 5. ROAD USAGE CHARGE; PHASE-IN. |
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| 156 | + | 5.29 (a) For a road usage charge under Minnesota Statutes, section 168.0132, imposed in a |
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| 157 | + | 5.30billing period that starts on or after July 1, 2026, and before July 1, 2027: |
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| 160 | | - | S1480-1 1st EngrossmentSF1480 REVISOR KRB 6.1 (1) the amounts calculated under subdivision 2, paragraph (b), clause (2), and subdivision |
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| 161 | | - | 6.22, paragraph (c), clause (2), are multiplied by 0.8; and |
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| 162 | | - | 6.3 (2) the adjustment rate is multiplied by 0.8. |
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| 163 | | - | 6.4 EFFECTIVE DATE.This section is effective July 1, 2026, and applies to a registration |
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| 164 | | - | 6.5period starting on or after that date. |
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| 165 | | - | 6.6 Sec. 6. APPROPRIATION; ROAD USAGE CHARGE. |
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| 166 | | - | 6.7 $....... in fiscal year 2026 is appropriated from the driver and vehicle services operating |
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| 167 | | - | 6.8account in the special revenue fund to the commissioner of public safety for administrative |
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| 168 | | - | 6.9costs to implement the road usage charge under Minnesota Statutes, section 168.0132. This |
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| 169 | | - | 6.10is a onetime appropriation and is available until June 30, 2028. |
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| 159 | + | 25-01618 as introduced01/07/25 REVISOR KRB/MI 6.1 (1) the amounts calculated under subdivision 2, paragraph (b), clause (2), and subdivision |
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| 160 | + | 6.22, paragraph (c), clause (2), are multiplied by 0.6; and |
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| 161 | + | 6.3 (2) the adjustment rate is multiplied by 0.6. |
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| 162 | + | 6.4 (b) For a road usage charge under Minnesota Statutes, section 168.0132, imposed in a |
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| 163 | + | 6.5billing period that starts on or after July 1, 2027, and before July 1, 2028: |
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| 164 | + | 6.6 (1) the amounts calculated under subdivision 2, paragraph (b), clause (2), and subdivision |
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| 165 | + | 6.72, paragraph (c), clause (2), are multiplied by 0.8; and |
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| 166 | + | 6.8 (2) the adjustment rate is multiplied by 0.8. |
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| 167 | + | 6.9 EFFECTIVE DATE.This section is effective July 1, 2026, and applies to a registration |
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| 168 | + | 6.10period starting on or after that date. |
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| 169 | + | 6.11 Sec. 6. APPROPRIATION; ROAD USAGE CHARGE. |
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| 170 | + | 6.12 $....... in fiscal year 2026 is appropriated from the driver and vehicle services operating |
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| 171 | + | 6.13account in the special revenue fund to the commissioner of public safety for administrative |
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| 172 | + | 6.14costs to implement the road usage charge under Minnesota Statutes, section 168.0132. This |
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| 173 | + | 6.15is a onetime appropriation and is available until June 30, 2028. |
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