1.1                          A bill for an act 
  1.2             relating to education; exempting higher education from 
  1.3             debt service requirement for libraries; appropriating 
  1.4             money for buildings, repairs, and land acquisitions; 
  1.5             authorizing the sale of state land; amending Laws 
  1.6             1994, chapter 643, section 35, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1994, chapter 643, section 35, subdivision 
  1.9   1, is amended to read: 
  1.10     Subdivision 1.  [HIGHER EDUCATION BOARDS.] The state board 
  1.11  of technical colleges, the state board for community colleges, 
  1.12  the state university board, or their successors shall pay 
  1.13  one-third of the debt service on state bonds sold to finance 
  1.14  projects authorized by this act.  Appropriations for higher 
  1.15  education asset preservation and renewal and for libraries are 
  1.16  not subject to the one-third debt service requirement.  After 
  1.17  each sale of general obligation bonds, the commissioner of 
  1.18  finance shall notify the state board of technical colleges, the 
  1.19  state board for community colleges, the state university board, 
  1.20  and the higher education board of the amounts for which each 
  1.21  system is assessed of for each year for the life of the bonds. 
  1.22     Sec. 2.  [STATE UNIVERSITIES.] 
  1.23     Subdivision 1.  [SYSTEMWIDE.] $1,000,000 is appropriated 
  1.24  from the bond proceeds fund to the state university board or its 
  1.25  successor to purchase land as provided under the provisions of 
  1.26  Minnesota Statutes, section 136.261. 
  2.1      Subd. 2.  [MANKATO STATE.] Mankato State University may 
  2.2   sell to the city of Mankato for fair market value approximately 
  2.3   2.66 acres of land in the area of Warren Street, Stadium Road, 
  2.4   and Hiniker Mill Road for use as a detention basin.  The 
  2.5   university may also grant the city of Mankato a permanent 
  2.6   utility easement in order to provide the city access to the 
  2.7   basin. 
  2.8      Sec. 3.  [COMMUNITY COLLEGES.] 
  2.9      Subdivision 1.  [FOND DU LAC COMMUNITY COLLEGE.] $500,000 
  2.10  is appropriated from the bond proceeds fund to the community 
  2.11  college board or its successor for the design through 
  2.12  development of construction documents for a residential facility 
  2.13  for 150 students at Fond du Lac Community College. 
  2.14     Subd. 2.  [NORMANDALE COMMUNITY COLLEGE PARKING 
  2.15  FACILITIES.] The state board for community colleges or its 
  2.16  successor may construct, improve, operate, and maintain parking 
  2.17  facilities for the use and benefit of Normandale Community 
  2.18  College.  The board shall supervise the construction process as 
  2.19  provided under Minnesota Statutes, section 136E.692.  The higher 
  2.20  education facilities authority may issue revenue bonds or other 
  2.21  financial instruments for the facilities under Minnesota 
  2.22  Statutes, sections 136A.25 to 136A.42, and the state board for 
  2.23  community colleges or its successor may borrow the proceeds of 
  2.24  the revenue bonds or other financial instruments to finance the 
  2.25  construction of parking spaces and replacement of the west lot 
  2.26  not to exceed $4,000,000.  The board may enter into agreements 
  2.27  and pledge revenues of the facilities as may be necessary to 
  2.28  provide security for the bonds and may mortgage the financed 
  2.29  facilities to the higher education facilities authority or to a 
  2.30  trustee for the bondholders if considered necessary by the board 
  2.31  or the authority for the successful marketing of the bonds.  The 
  2.32  board shall establish, maintain, revise when necessary, and 
  2.33  collect rates and charges for the use of the parking 
  2.34  facilities.  The rates and charges must be sufficient, as 
  2.35  estimated by the board, to pay all expenses of operation and 
  2.36  maintenance of the facilities, to pay principal of, and interest 
  3.1   on, revenue bonds or other obligations or instruments when due, 
  3.2   and to pay customary fees and charges of the higher education 
  3.3   facilities authority and to establish and maintain the reserve 
  3.4   funds that the board considers necessary for repair, 
  3.5   replacement, and maintenance of the facilities.  Funds and 
  3.6   accounts established in furtherance of these purposes are not 
  3.7   subject to Minnesota Statutes, section 136.67, subdivision 2, 
  3.8   and are not subject to the budgetary control of the commissioner 
  3.9   of finance.  The board shall never be obligated to use other 
  3.10  revenues of the board or funds of the state to pay the costs of 
  3.11  construction, operation, maintenance, and repair of the parking 
  3.12  facilities or to pay principal of and interest or obligations 
  3.13  issued for these purposes. 
  3.14     Sec. 4.  [TECHNICAL COLLEGES.] 
  3.15     The department of economic security and the state board of 
  3.16  technical colleges or its successor may enter into an agreement 
  3.17  with a private party for the construction and leasing of a 
  3.18  facility for the department of economic security, to be located 
  3.19  on property owned by the state at Duluth Technical College.  The 
  3.20  facility must be used by the department of economic security as 
  3.21  a one-stop center for services the department offers to the 
  3.22  public.  The agreement must provide that the department of 
  3.23  economic security shall lease the facility from the private 
  3.24  party, and may also provide for lease-purchase of the facility, 
  3.25  or for the purchase of the facility by the state for a nominal 
  3.26  price at the end of the lease.  The agreement may provide for 
  3.27  payments to the Duluth Technical College for the value of the 
  3.28  property on which the facility is situated, and for the value of 
  3.29  any services or other benefits provided by the college for the 
  3.30  facility.  Construction plans for the facility must be approved 
  3.31  by the commissioner of administration and by the board of 
  3.32  trustees of Minnesota state colleges and universities.  
  3.33  Operating expenses of the facility must be paid by the 
  3.34  department of economic security.  The facility is not subject to 
  3.35  ad valorem taxation. 
  3.36     Sec. 5.  [UNIVERSITY OF MINNESOTA.] 
  4.1      Subdivision 1.  [TWIN CITIES CAMPUS.] The amounts in this 
  4.2   subdivision are appropriated from the bond proceeds fund to the 
  4.3   board of regents of the University of Minnesota for the 
  4.4   following projects: 
  4.5   (a) Washington Avenue pedestrian bridges repair    $500,000
  4.6   (b) Moos-Millard link repair                        250,000
  4.7   (c) Sprinkler system repair                         120,000
  4.8      Subd. 2.  [SYSTEMWIDE.] $1,000,000 is appropriated from the 
  4.9   bond proceeds fund to the board of regents of the University of 
  4.10  Minnesota for fumehood repair and replacement. 
  4.11     Sec. 6.  [BOND SALE.] 
  4.12     To provide the money appropriated by sections 2 and 3 from 
  4.13  the bond proceeds fund, the commissioner of finance, on request 
  4.14  of the governor, shall sell and issue bonds of the state in an 
  4.15  amount up to $3,370,000 in the manner, on the terms, and with 
  4.16  the effect prescribed by Minnesota Statutes, sections 16A.631 to 
  4.17  16A.675, and by the Minnesota Constitution, article XI, sections 
  4.18  4 to 7.