Minnesota Legislature
HF 28
as introduced - 89th Legislature (2015 - 2016) Posted on 01/08/2015 12:13pm
Current Version - as introduced
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A bill for an act
relating to economic development; Destination Medical Center; clarifying the
computation of state aid payments; amending Minnesota Statutes 2014, section
469.47, subdivisions 1, 3, 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 469.47, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For purposes of this section, the following terms
have the meanings given them.
(b) "Commissioner" means the commissioner of employment and economic
development.
(c) "Construction projects" means:
(1) for expenditures by a medical business entity, construction of buildings in the
city for which the building permit was issued after June 30, 2013; and
(2) for any other expenditures, construction of privately owned buildings and other
improvements that are undertaken pursuant to or as part of the development plan and are
located within a medical center development district.
(d) "Expenditures" means expenditures made by a medical business entity or by an
individual or private entity on construction projects for the capital cost of the project
including, but not limited to:
(1) design and predesign, including architectural, engineering, and similar services;
(2) legal, regulatory, and other compliance costs of the project;
(3) land acquisition, demolition of existing improvements, and other site preparation
costs;
(4) construction costs, including all materials and supplies of the project; and
(5) equipment and furnishings that are attached to or become part of the real property.
Expenditures excludes supplies and other items with a useful life of less than a
year that are not used or consumed in constructing improvements to real property or
are otherwise chargeable to capital costs.
(e) "Qualified expendituresnew text begin for the fiscal yearnew text end " deleted text begin has the following meaning. In the
first year in which aid is paid under this section, qualified expendituresdeleted text end means the total
certified expenditures since June 30, 2013, through the end of the preceding new text begin calendar new text end year,
minus $200,000,000. deleted text begin For subsequent years, qualified expenditures means the certified
expenditures for the preceding year.
deleted text end
(f) "Transit costs" means the portions of a public infrastructure project that are for
public transit intended primarily to serve the district, such as transit stations, equipment,
rights-of-way, and similar costs.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2014, section 469.47, subdivision 3, is amended to read:
Subd. 3.
General state infrastructure aid.
(a) General state infrastructure aid
may not be paid out under this section until deleted text begin totaldeleted text end new text begin qualifiednew text end expenditures new text begin for the fiscal
year new text end exceed deleted text begin $200,000,000deleted text end new text begin zeronew text end .
(b) The amount of the general state infrastructure aid for a fiscal year equals the deleted text begin sum
ofdeleted text end qualified expendituresnew text begin for the fiscal yearnew text end , multiplied by 2.75 percent. The maximum
amount of state aid payable in any year is limited to no more than $30,000,000. If the
aid entitlement for the year exceeds the maximum annual limit, the excess is an aid
carryover to later years. The carryover aid must be paid in the first year in which the aid
entitlement for the current year is less than the maximum annual limit, but only to the
extent the carryover, when added to the current year aid, is less than the maximum annual
limit. If the commissioner determines that the city has made the required matching local
contribution under subdivision 4, the commissioner must pay to the city the amount of
general state infrastructure aid for the year by September 1.
(c) The city must use general state infrastructure aid it receives under this subdivision
for improvements and other capital costs related to the public infrastructure projects
approved by the corporation, other than transit costs. The city must maintain appropriate
records to document the use of the funds under this requirement.
(d) The commissioner, in consultation with the commissioner of management and
budget, and representatives of the city and the corporation, must establish a total limit on
the amount of state aid payable under this subdivision that will be adequate to finance, in
combination with the local contribution, $455,000,000 of general public infrastructure
projects.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2014, section 469.47, subdivision 5, is amended to read:
Subd. 5.
State transit aid.
(a) The city qualifies for state transit aid under
this section if the county contributes the required local matching contribution under
subdivision 6 or the city or county has agreed to make an equivalent contribution out of
other funds for the year.new text begin State transit aid may not be paid out under this section until
qualified expenditures for the fiscal year exceed zero.
new text end
(b) If the city qualifies for aid under paragraph (a), the commissioner must pay the
city the state transit aid in the amount calculated under this paragraph. The amount of
the state transit aid for a fiscal year equals the deleted text begin sum ofdeleted text end qualified expenditures, as certified
by the commissioner for the deleted text begin priordeleted text end new text begin fiscalnew text end year, multiplied by 0.75 percent, reduced by the
amount of the local contribution under subdivision 6. The maximum amount of state
transit aid payable in any year is limited to no more than $7,500,000. If the aid entitlement
for the year exceeds the maximum annual limit, the excess is an aid carryover to later
years. The carryover aid must be paid in the first year in which the aid entitlement for the
current year is less than the maximum annual limit, but only to the extent the carryover,
when added to the current year aid, is less than the maximum annual limit.
(c) The commissioner, in consultation with the commissioner of management and
budget, and representatives of the city and the corporation, must establish a total limit on
the amount of state aid payable under this subdivision that will be adequate to finance, in
combination with the local contribution, $116,000,000 of transit costs.
(d) The city must use state transit aid it receives under this subdivision for transit
costs. The city must maintain appropriate records to document the use of the funds
under this requirement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end