1.1 A bill for an act 1.2 relating to transportation; eliminating highway toll collection authority; providing 1.3 for reallocation of certain user fee revenue; appropriating money; amending 1.4 Minnesota Statutes 2024, sections 160.845; 160.93, subdivisions 1, 5; 473.4485, 1.5 subdivision 1; repealing Minnesota Statutes 2024, section 160.93, subdivisions 2, 1.6 2a. 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. Minnesota Statutes 2024, section 160.845, is amended to read: 1.9 160.845 RESTRICTIONS ON TOLL FACILITY. 1.10 (a) A road authority, including the governing body of a city, or a private operator may 1.11not convert, transfer, or utilize any portion of a highway to impose tolls or for use as a toll 1.12facility. A road authority, including the governing body of a city, or a private operator may 1.13not limit operation of a commercial motor vehicle, as defined in section 169.011, subdivision 1.1416, to a toll facility or otherwise require that a commercial motor vehicle use the tolled 1.15portion of a highway. 1.16 (b) This section does not apply to (1) any toll facility or high-occupancy vehicle lane 1.17constructed, converted, or established before September 1, 2007, (2) any additional lane, 1.18including a priced dynamic shoulder lane, high-occupancy vehicle lane, or high-occupancy 1.19toll lane, added to a highway after September 1, 2007, and (3) any other general purpose 1.20lane that adds capacity. 1.21 EFFECTIVE DATE.This section is effective July 1, 2025. 1Section 1. 25-05166 as introduced03/24/25 REVISOR KRB/LJ SENATE STATE OF MINNESOTA S.F. No. 3269NINETY-FOURTH SESSION (SENATE AUTHORS: KORAN and Howe) OFFICIAL STATUSD-PGDATE Introduction and first reading04/03/2025 Referred to Transportation 2.1 Sec. 2. Minnesota Statutes 2024, section 160.93, subdivision 1, is amended to read: 2.2 Subdivision 1.Fees authorized prohibited.To improve efficiency and provide more 2.3options to individuals traveling in a trunk highway corridor, The commissioner of 2.4transportation may must not charge user fees to owners or operators of single-occupant 2.5vehicles using for the operation of vehicles in dynamic shoulder lanes as designated by the 2.6commissioner and any designated high-occupancy vehicle lanes. The fees may be collected 2.7using electronic or other toll-collection methods and may vary in amount with the time of 2.8day and level of traffic congestion within the corridor. The commissioner shall consult with 2.9the Metropolitan Council and obtain necessary federal authorizations before implementing 2.10user fees on a high-occupancy vehicle lane or dynamic shoulder lane. Fees under this section 2.11are not subject to section 16A.1283. 2.12 EFFECTIVE DATE.This section is effective July 1, 2025. 2.13 Sec. 3. Minnesota Statutes 2024, section 160.93, subdivision 5, is amended to read: 2.14 Subd. 5.Dynamic shoulder lanes.(a) The commissioner may designate dynamic 2.15shoulder lanes on freeways. The commissioner may operate dynamic shoulder lanes as 2.16priced lanes, general purpose lanes, high-occupancy vehicle lanes, or as shoulders as defined 2.17in section 169.011, subdivision 74. The commissioner may prescribe the conditions under 2.18which the lanes may be used. 2.19 (b) The commissioner may not operate a dynamic shoulder lane on marked Trunk 2.20Interstate Highway 35W from its intersection with marked Trunk Interstate Highway 94 to 2.21its intersection with marked Trunk Highway 62 as a general purpose lane. A dynamic 2.22shoulder lane along this portion of marked Trunk Interstate Highway 35W may only be 2.23used by: 2.24 (1) a vehicle with more than one occupant; 2.25 (2) a single-occupant vehicle if the fee under subdivision 1 is paid; 2.26 (3) (2) a transit bus providing public transportation, as defined in section 174.22, 2.27subdivision 7; and 2.28 (4) (3) an authorized emergency vehicle, as defined in section 169.011, subdivision 3. 2.29 (c) The commissioner shall must erect signs to indicate when the lanes may be used. 2.30 EFFECTIVE DATE.This section is effective July 1, 2025. 2Sec. 3. 25-05166 as introduced03/24/25 REVISOR KRB/LJ 3.1 Sec. 4. Minnesota Statutes 2024, section 473.4485, subdivision 1, is amended to read: 3.2 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have 3.3the meanings given. 3.4 (b) "Busway" means a form of bus service provided to the public on a regular and ongoing 3.5basis, including arterial or highway bus rapid transit, that (1) compared to other regular 3.6route bus service, provides reduced travel time and uses distinct bus stop or station amenities, 3.7and (2) does not primarily or substantially operate within separated rights-of-way. 3.8 (c) "Commissioner" means the commissioner of transportation. 3.9 (d) "Guideway" means a form of transportation service provided to the public on a 3.10regular and ongoing basis that primarily or substantially operates within separated 3.11rights-of-way or operates on rails, and includes: 3.12 (1) each line for intercity passenger rail, commuter rail, light rail transit, and streetcars; 3.13 (2) as applicable, each line for dedicated bus service, which may include arterial or 3.14highway bus rapid transit, limited stop bus service, and express bus service; and 3.15 (3) any intermodal facility serving two or more lines identified in clauses (1) and (2). 3.16Guideway does not include a busway. 3.17 (e) "Local unit of government" means a county, statutory or home rule charter city, town, 3.18or other political subdivision including, but not limited to, a regional railroad authority or 3.19joint powers board. 3.20 (f) "Separated rights-of-way" includes exclusive, dedicated, or primary use of a 3.21right-of-way by the public transportation service. Separated rights-of-way does not include 3.22a shoulder, or dynamic shoulder lane, or priced lane under section 160.93. 3.23 (g) "Sources of funds" includes, but is not limited to, money from federal aid, state 3.24appropriations, the Metropolitan Council, special taxing districts, local units of government, 3.25farebox recovery, and nonpublic sources. 3.26 (h) "Budget activity" includes, but is not limited to, environmental analysis, land 3.27acquisition, easements, design, preliminary and final engineering, acquisition of vehicles 3.28and rolling stock, track improvement and rehabilitation, and construction. 3.29 EFFECTIVE DATE.This section is effective July 1, 2025. 3Sec. 4. 25-05166 as introduced03/24/25 REVISOR KRB/LJ 4.1 Sec. 5. TOLLING ELIMINATION; REALLOCATION OF FUNDS. 4.2 Subdivision 1.Cancellations.(a) The uncommitted balances in each high-occupancy 4.3vehicle lane user fee account established under Minnesota Statutes, section 160.93, 4.4subdivision 2, are canceled to the general fund on June 29, 2025. 4.5 (b) The uncommitted balance in the I-35W high-occupancy vehicle and dynamic shoulder 4.6lane account under Minnesota Statutes, section 160.93, subdivision 2a, is canceled to the 4.7general fund on June 29, 2025. 4.8 Subd. 2.Appropriation.The amount necessary, not to exceed the amount canceled 4.9under subdivision 1, is appropriated in fiscal year 2026 from the general fund to the 4.10commissioner of transportation for costs related to implementing the requirements of this 4.11act, including but not limited to any fee collection system payments and signage. 4.12 Subd. 3.Transfer.The commissioner of transportation must determine a transfer amount 4.13that equals the amount canceled under subdivision 1 less the amount expended under 4.14subdivision 2 and must transfer that amount in fiscal year 2026 from the general fund to 4.15the trunk highway fund. 4.16 EFFECTIVE DATE.This section is effective the day following final enactment. 4.17 Sec. 6. REPEALER. 4.18 Minnesota Statutes 2024, section 160.93, subdivisions 2 and 2a, are repealed. 4.19 EFFECTIVE DATE.This section is effective June 30, 2025. 4Sec. 6. 25-05166 as introduced03/24/25 REVISOR KRB/LJ 160.93 USER FEES; HIGH-OCCUPANCY VEHICLE AND DYNAMIC SHOULDER LANES. Subd. 2.Deposit of revenues; appropriation.(a) Except as provided in subdivision 2a, money collected from fees authorized under subdivision 1 must be deposited in a high-occupancy vehicle lane user fee account in the special revenue fund. A separate account must be established for each trunk highway corridor. Money in the account is appropriated to the commissioner. (b) From this appropriation the commissioner shall first repay the trunk highway fund and any other fund source for money spent to install, equip, or modify the corridor for the purposes of subdivision 1, and then shall pay all the costs of implementing and administering the fee collection system for that corridor. (c) The commissioner shall spend remaining money in the account as follows: (1) one-half must be spent for transportation capital improvements within the corridor; and (2) one-half must be transferred to the Metropolitan Council for expansion and improvement of bus transit services within the corridor beyond the level of service provided on the date of implementation of subdivision 1. Subd. 2a.I-35W high-occupancy vehicle and dynamic shoulder lane account.(a) An I-35W high-occupancy vehicle and dynamic shoulder lane account is established in the special revenue fund. Money collected from fees authorized under subdivision 1 for the marked Interstate Highway 35W (I-35W) corridor must be deposited in the account and used as described in this subdivision. Money in the account is appropriated to the commissioner. (b) During the first year of revenue operations, the commissioner shall use the money received in that year to pay the costs of operating and administering the fee collection system within the corridor, up to $1,000,000. Any remaining money must be transferred to the Metropolitan Council for improvement of bus transit services within the I-35W corridor including transit capital expenses. (c) During the second and subsequent years of revenue operations, the commissioner shall use money in the account as follows: (1) each year, allocate the lesser amount of $1,000,000 or 75 percent of the revenues for operating and administering the fee collection system within the corridor; (2) transfer the remaining amount up to the amount allocated under clause (1) to the Metropolitan Council for improvement of bus transit within the corridor including capital expenses; and (3) allocate any remaining amount as follows: (i) 25 percent to the commissioner for operating and administering the fee collection system within the corridor and for transportation capital improvements that are consistent with the goals of the urban partnership agreement and that are located within the corridor and (ii) 75 percent to the Metropolitan Council for improvement of bus transit services within the corridor including transit capital expenses. 1R APPENDIX Repealed Minnesota Statutes: 25-05166