HF 1605

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/07/2015 12:29pm

A bill for an act
relating to capital investment; appropriating money for capital improvements
and betterments at the University of Minnesota and Minnesota State Colleges
and Universities facilities statewide; authorizing the sale and issuance of state
bonds; modifying a prior appropriation; authorizing sale of state bond-financed
property; amending Laws 2012, chapter 293, section 3, subdivision 18.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin CAPITAL IMPROVEMENT APPROPRIATIONS. new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from the
bond proceeds fund, or another named fund, to the state agencies or officials indicated,
to be spent for public purposes. Appropriations of bond proceeds must be spent as
authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire
and better public land and buildings and other public improvements of a capital nature, or
as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j),
or article XIV. Unless otherwise specified, money appropriated in this act for a capital
program or project may be used to pay state agency staff costs that are attributed directly
to the capital program or project in accordance with accounting policies adopted by the
commissioner of management and budget. Unless otherwise specified, the appropriations
in this act are available until the project is completed or abandoned subject to Minnesota
Statutes, section 16A.642. Unless otherwise specified in this act, money appropriated in
this act for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046,
should not be used for projects that can be financed within a reasonable time frame under
Minnesota Statutes, section 16B.322 or 16C.144.
new text end

new text begin APPROPRIATIONS new text end

Sec. 2. new text begin UNIVERSITY OF MINNESOTA new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 77,000,000 new text end

new text begin To the Board of Regents of the University
of Minnesota for the purposes specified in
this section.
new text end

new text begin Subd. 2. new text end new text begin Higher Education Asset Preservation and Replacement (HEAPR) new text end

new text begin 55,000,000 new text end

new text begin To be spent in accordance with Minnesota
Statutes, section 135A.046.
new text end

new text begin Subd. 3. new text end new text begin St. Paul; Veterinary Isolation Laboratories Renovation new text end

new text begin 18,000,000 new text end

new text begin To demolish two obsolete veterinary
isolation laboratories and predesign, design,
construct, furnish, and equip a veterinary
biocontainment facility on the St. Paul
campus, including large and small animal
holding spaces.
new text end

new text begin Subd. 4. new text end new text begin St. Paul; Greenhouse Replacement new text end

new text begin 4,000,000 new text end

new text begin To demolish the existing facility and
predesign, design, construct, furnish, and
equip a greenhouse with four specialized
biome rooms and two flexible project rooms
to support learning and research on the St.
Paul campus.
new text end

new text begin Subd. 5. new text end new text begin University Share new text end

new text begin Except for the appropriation for HEAPR, the
appropriations in this section are intended to
cover approximately two-thirds of the cost of
each project. The remaining costs must be
paid from university sources.
new text end

new text begin Subd. 6. new text end new text begin Unspent Appropriations new text end

new text begin Upon substantial completion of a project
authorized in this section and after written
notice to the commissioner of management
and budget, the Board of Regents must use
any money remaining in the appropriation
for that project for HEAPR under Minnesota
Statutes, section 135A.046. The Board
of Regents must report by February 1 of
each even-numbered year to the chairs of
the house of representatives and senate
committees with jurisdiction over capital
investment and higher education finance, and
to the chairs of the house of representatives
Ways and Means Committee and the senate
Finance Committee, on how the remaining
money has been allocated or spent.
new text end

Sec. 3. new text begin MINNESOTA STATE COLLEGES AND UNIVERSITIES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 198,454,000 new text end

new text begin To the Board of Trustees of the Minnesota
State Colleges and Universities for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end new text begin Higher Education Asset Preservation and Replacement (HEAPR) new text end

new text begin 72,500,000 new text end

new text begin To be spent in accordance with Minnesota
Statutes, section 135A.046.
new text end

new text begin Subd. 3. new text end new text begin Anoka Technical College new text end

new text begin 2,114,000 new text end

new text begin To design, renovate, furnish, and equip the
automotive and manufacturing technology
training spaces.
new text end

new text begin Subd. 4. new text end new text begin Bemidji State University new text end

new text begin 18,100,000 new text end

new text begin To complete design and construct, furnish,
and equip the replacement of Hagg Sauer
Hall.
new text end

new text begin Subd. 5. new text end new text begin Century College, White Bear Lake new text end

new text begin 1,325,000 new text end

new text begin To design, renovate, furnish, and equip
existing tiered classrooms to create more
flexible and efficient space.
new text end

new text begin Subd. 6. new text end new text begin Dakota County Technical College new text end

new text begin 7,733,000 new text end

new text begin To complete design, renovate, furnish,
and equip classroom and lab space for
transportation and emerging technologies
programs.
new text end

new text begin Subd. 7. new text end new text begin Minnesota West Community and Technical College; Canby and Jackson Campuses new text end

new text begin 3,267,000 new text end

new text begin (a) To design and install a geothermal HVAC
system, and remove and replace associated
mechanical systems, on the Canby campus.
new text end

new text begin (b) To design and consolidate the powerline
training program spaces by demolishing
Building "B" and the current off-campus
powerline training space, and construct
and equip a new indoor powerline training
addition and exterior truck port on the
Jackson main campus.
new text end

new text begin Subd. 8. new text end new text begin Minnesota State Community and Technical College; Fergus Falls and Wadena Campuses new text end

new text begin 2,373,000 new text end

new text begin (a) To design the renovation of and to
renovate, furnish, and equip existing library
space to create a student services center at
the Wadena campus.
new text end

new text begin (b) To design the renovation of and to
renovate, furnish, and equip existing space
to create a center for student and workforce
success at the Fergus Falls campus.
new text end

new text begin Subd. 9. new text end new text begin Northeast Higher Education District, Hibbing new text end

new text begin 10,000,000 new text end

new text begin To complete the design, remove obsolete and
underutilized space, and construct, renovate,
furnish, and equip efficient and flexible
academic and student service space at the
Hibbing campus.
new text end

new text begin Subd. 10. new text end new text begin Northland Community and Technical College; East Grand Forks new text end

new text begin 826,000 new text end

new text begin To design, renovate, furnish, and equip
science and radiological technology
laboratories on the East Grand Forks campus.
new text end

new text begin Subd. 11. new text end new text begin Rochester Community and Technical College new text end

new text begin 11,585,000 new text end

new text begin To complete the design, remove obsolete and
underutilized space, and construct, renovate,
furnish, and equip efficient and flexible
academic and student service space.
new text end

new text begin Subd. 12. new text end new text begin St. Paul College new text end

new text begin 18,829,000 new text end

new text begin To complete the design of and construct,
furnish, and equip the Health and Science
Alliance Center addition, and to renovate,
furnish, and equip existing health and West
Tower spaces.
new text end

new text begin Subd. 13. new text end new text begin St. Cloud State University new text end

new text begin 18,572000 new text end

new text begin To complete design of and to renovate,
furnish, and equip Eastman Hall to relocate
student health services and academic
programs into the renovated Eastman Hall.
new text end

new text begin Subd. 14. new text end new text begin South Central College; North Mankato new text end

new text begin 8,600,000 new text end

new text begin To design, renovate, renew, furnish, and
equip laboratory, classroom, and office
space for health care, STEM, computer, and
agribusiness programs.
new text end

new text begin Subd. 15. new text end new text begin Winona State University new text end

new text begin 22,630,000 new text end

new text begin To complete design, renovate, remodel,
furnish, and equip Phase 2 of the education
village project in Wabasha Hall, Wabasha
Recreation Center, and the Cathedral School
to create an education village of classrooms,
laboratories, offices, and meeting and support
spaces enabling the College of Education
to integrate with southeastern Minnesota
communities and school districts to jointly
provide an extraordinary experience for
the preparation of teachers and school
professionals.
new text end

new text begin Subd. 16. new text end new text begin Debt Service new text end

new text begin (a) Except as provided in paragraph (b), the
Board of Trustees shall pay the debt service
on one-third of the principal amount of state
bonds sold to finance projects authorized
by this section. After each sale of general
obligation bonds, the commissioner of
management and budget shall notify the
board of the amounts assessed for each year
for the life of the bonds.
new text end

new text begin (b) The board need not pay debt service
on bonds sold to finance higher education
asset preservation and replacement. Where a
nonstate match is required, the debt service is
due on a principal amount equal to one-third
of the total project cost, less the match
committed before the bonds are sold.
new text end

new text begin (c) The commissioner of management and
budget shall reduce the board's assessment
each year by one-third of the net income
from investment of general obligation bond
proceeds in proportion to the amount of
principal and interest otherwise required to
be paid by the board. The board shall pay its
resulting net assessment to the commissioner
of management and budget by December
1 of each year. If the board fails to make
a payment when due, the commissioner
of management and budget shall reduce
allotments for appropriations from the
general fund otherwise available to the board
and apply the amount of the reduction to
cover the missed debt service payment. The
commissioner of management and budget
shall credit the payments received from the
board to the bond debt service account in
the state bond fund each December 1 before
money is transferred from the general fund
under Minnesota Statutes, section 16A.641,
subdivision 10.
new text end

new text begin Subd. 17. new text end new text begin Unspent Appropriations new text end

new text begin (a) Upon substantial completion of a
project authorized in this section and after
written notice to the commissioner of
management and budget, the board must use
any money remaining in the appropriation
for that project for higher education
asset preservation and replacement under
Minnesota Statutes, section 135A.046. The
Board of Trustees must report by February
1 of each even-numbered year to the chairs
of the house of representatives and senate
committees with jurisdiction over capital
investment and higher education finance, and
to the chairs of the house of representatives
Ways and Means Committee and the senate
Finance Committee, on how the remaining
money has been allocated or spent.
new text end

new text begin (b) The unspent portion of an appropriation
for a project in this section that is complete
is available for higher education asset
preservation and replacement under this
subdivision at the same campus as the project
for which the original appropriation was
made and the debt service requirement under
this subdivision is reduced accordingly.
Minnesota Statutes, section 16A.642, applies
from the date of the original appropriation to
the unspent amount transferred.
new text end

Sec. 4. new text begin BOND SALE EXPENSES new text end

new text begin $ new text end

new text begin ....... new text end

new text begin To the commissioner of management
and budget for bond sale expenses under
Minnesota Statutes, section 16A.641,
subdivision 8.
new text end

Sec. 5. new text begin BOND SALE.
new text end

new text begin To provide the money appropriated in this act from the bond proceeds fund, the
commissioner of management and budget shall sell and issue bonds of the state in an
amount up to $275,454,000 in the manner, upon the terms, and with the effect prescribed
by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution,
article XI, sections 4 to 7.
new text end

Sec. 6. new text begin BOND SALE SCHEDULE.
new text end

new text begin The commissioner of management and budget shall schedule the sale of state general
obligation bonds so that, during the biennium ending June 30, 2017, no more than $.......
will need to be transferred from the general fund to the state bond fund to pay principal
and interest due and to become due on outstanding state general obligation bonds. During
the biennium, before each sale of state general obligation bonds, the commissioner of
management and budget shall calculate the amount of debt service payments needed on
bonds previously issued and shall estimate the amount of debt service payments that will
be needed on the bonds scheduled to be sold. The commissioner shall adjust the amount
of bonds scheduled to be sold so as to remain within the limit set by this section. The
amount needed to make the debt service payments is appropriated from the general fund
as provided in Minnesota Statutes, section 16A.641.
new text end

Sec. 7.

Laws 2012, chapter 293, section 3, subdivision 18, is amended to read:

Subd. 18. Southwest Minnesota State University, Marshall

Science Lab Renovation

500,000

new text begin (a) new text end To complete design for renovation of the
Science and Math building and classroom
spaces and an addition to the Plant Science
building.

new text begin (b) Having abandoned the project specified
in paragraph (a), the unspent portion of
this appropriation is available for higher
education asset preservation and replacement
on the campus of Southwest Minnesota
State University, Marshall, and the debt
service requirement under subdivision 20 is
reduced accordingly. Minnesota Statutes,
section 16A.642, applies from the date of the
original appropriation to the unspent amount
transferred.
new text end

Sec. 8. new text begin MINNEAPOLIS COMMUNITY AND TECHNICAL COLLEGE; SALE
OF AVIATION TRAINING CENTER.
new text end

new text begin Notwithstanding Minnesota Statutes, section 16A.695, subdivision 3, the net
proceeds of the sale or disposition of the Aviation Training Center at the Flying Cloud
Airport operated by the Minneapolis Community and Technical College, after paying
all expenses incurred in selling the property, are appropriated to the Board of Trustees
of the Minnesota State Colleges and Universities for use pursuant to Minnesota Statutes,
section 135A.046, at the Minneapolis Community and Technical College campus and the
net proceeds need not be paid to the commissioner of management and budget, as would
otherwise be required by Minnesota Statutes, section 16A.695, subdivision 3. When the
sale is complete and the sale proceeds have been applied as provided in this section,
Minnesota Statutes, section 16A.695, no longer applies to the property and the property
is no longer state bond financed property.
new text end

Sec. 9. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment.
new text end