1.1                          A bill for an act 
  1.2             relating to capital improvements; authorizing spending 
  1.3             to acquire and better public land and buildings and 
  1.4             other public improvements of a capital nature with 
  1.5             certain conditions; authorizing sale of state bonds; 
  1.6             requiring periodic reports on the status of authorized 
  1.7             and outstanding state bonds; providing for 
  1.8             cancellation of certain unused bond authorizations; 
  1.9             appropriating money; amending Minnesota Statutes 1994, 
  1.10            sections 16A.695, subdivisions 1, 2, 3, and by adding 
  1.11            a subdivision; 124.431, subdivisions 2, 5, 6, 7, and 
  1.12            10; 124.494, subdivisions 2, 3, and 4; 446A.02, 
  1.13            subdivision 3, 446A.03, subdivisions 2 and 3a; 
  1.14            446A.071, subdivision 7; 446A.081, subdivisions 11 and 
  1.15            12; 446A.12, subdivision 1; Laws 1994, chapters 632, 
  1.16            article 3, section 12; 643, sections 2, subdivision 
  1.17            15; 10, subdivision 10; 11, subdivisions 8, 10, and 
  1.18            13; 19, subdivision 8; 23, subdivisions 7 and 28; and 
  1.19            26, subdivisions 3 and 4; proposing coding for new law 
  1.20            in Minnesota Statutes, chapter 16A; repealing Laws 
  1.21            1992, chapter 558, section 17. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23                             ARTICLE 1
  1.24                        CAPITAL IMPROVEMENTS
  1.25  Section 1.  [CAPITAL IMPROVEMENTS APPROPRIATIONS.] 
  1.26     The sums in the column under "APPROPRIATIONS" are 
  1.27  appropriated from the bond proceeds fund, or another named fund, 
  1.28  to the state agencies or officials indicated, to be spent to 
  1.29  acquire and to better public land and buildings and other public 
  1.30  improvements of a capital nature, as specified in this article. 
  1.31                          SUMMARY BY FUND
  1.32  ADMINISTRATION                                    $   2,460,000
  1.33  AGRICULTURE                                             103,000
  2.1   NATURAL RESOURCES                                     5,625,000
  2.2   POLLUTION CONTROL                                       750,000
  2.3   SCIENCE MUSEUM OF MINNESOTA                             200,000
  2.4   HUMAN SERVICES                                          228,000
  2.5   TRANSPORTATION                                        8,000,000
  2.6   EDUCATION                                            23,670,000
  2.7   MINNESOTA STATE COLLEGES 
  2.8   AND UNIVERSITIES                                        900,000
  2.9   PUBLIC SAFETY                                         1,000,000
  2.10  BOND SALE EXPENSES                                       16,000
  2.11  TOTAL                                             $  35,952,000
  2.12  Bond Proceeds Fund                                   10,870,000
  2.13  Maximum Effort School 
  2.14  Loan Fund                                            23,670,000
  2.15  Transportation Fund                                   8,000,000
  2.16  General Fund                                            412,000
  2.17                                                   APPROPRIATIONS
  2.19  Sec. 2.  ADMINISTRATION                         
  2.20  Subdivision 1.  To the commissioner of
  2.21  administration for the purposes specified
  2.22  in this section                                      $2,460,000
  2.23  Subd. 2. Predesign Revenue      
  2.24  Department Facility                                     460,000
  2.25  Subd. 3.  Renovate Capitol Building                   2,000,000
  2.26  This appropriation is to predesign, 
  2.27  design, renovate, and equip the Capitol 
  2.28  building. 
  2.29  $184,000 is from the general fund for 
  2.30  furnishings, fixtures, equipment, and 
  2.31  relocation expenses. 
  2.32  The unencumbered balance from the 
  2.33  appropriation in Laws 1990, chapter 
  2.34  610, article 1, section 18(f), to plan 
  2.35  to remodel the Capitol is canceled. 
  2.36  Sec. 3.  AGRICULTURE                                    103,000
  2.37  This appropriation is to the 
  2.38  commissioner of agriculture for 
  2.39  completion of a seed potato inspection 
  2.40  facility in East Grand Forks. 
  2.41  The debt service cost on bonds sold to 
  2.42  provide the money appropriated in this 
  2.43  section must be paid from potato 
  2.44  inspection fees charged and collected 
  2.45  by the commissioner of agriculture 
  2.46  under Minnesota Statutes, sections 
  2.47  21.115 and 27.07.  Inspection fees 
  3.1   established by the commissioner of 
  3.2   agriculture must include appropriate 
  3.3   charges for this debt service, which 
  3.4   are appropriated to the commissioner 
  3.5   for payment to the commissioner of 
  3.6   finance under Minnesota Statutes, 
  3.7   section 16A.643. 
  3.8   Sec. 4. OFFICE OF    
  3.9   ENVIRONMENTAL ASSISTANCE                                      
  3.10  The appropriation in Laws 1994, chapter 
  3.11  643, section 24, subdivision 4, for a 
  3.12  solid waste capital assistance program 
  3.13  is transferred from the commissioner of 
  3.14  the pollution control agency to the 
  3.15  director of the office of environmental 
  3.16  assistance. 
  3.17  Sec. 5.  NATURAL RESOURCES                                   
  3.18  Subdivision 1.  To the commissioner of 
  3.19  natural resources for the purposes 
  3.20  specified in this section                             5,625,000
  3.21  Subd. 2.  Cannon Valley Trail Repair                    175,000
  3.22  This appropriation is for repair of 
  3.23  erosion damage to the Cannon Valley 
  3.24  Trail in the vicinity of milepost 80. 
  3.25  This appropriation is available only 
  3.26  when the commissioner has determined 
  3.27  that the Cannon Valley Trail joint 
  3.28  powers board has committed sufficient 
  3.29  additional money to complete the 
  3.30  project. 
  3.31  Subd. 3.  Dam Safety                                    200,000
  3.32  This appropriation is for dam safety 
  3.33  projects under Minnesota Statutes, 
  3.34  section 103G.511. 
  3.35  Subd. 4.  Eagle Creek Acquisition                     5,250,000
  3.36  This appropriation is for acquisition 
  3.37  and protection of the state-designated 
  3.38  trout stream named Eagle Creek, 
  3.39  together with associated springs, 
  3.40  seeps, wetlands, and adjacent lands 
  3.41  within the watershed necessary for the 
  3.42  protection of the creek.  The lands and 
  3.43  waters to be acquired are located in 
  3.44  the Minnesota River Valley in Sections 
  3.45  7 and 18, Township 115N, Range 21W, and 
  3.46  Section 13, Township 115N, Range 22W.  
  3.47  The acquired lands and waters must be 
  3.48  established by the commissioner as an 
  3.49  aquatic management area under Minnesota 
  3.50  Statutes, section 86A.05, subdivision 
  3.51  14. 
  3.52  Notwithstanding Minnesota Statutes, 
  3.53  section 84.944, subdivision 3, county 
  3.54  approval is not required for 
  3.55  acquisition of lands and waters 
  3.56  described in this subdivision under 
  3.57  Minnesota Statutes, section 84.994. 
  3.58  Sec. 6.  POLLUTION CONTROL                              750,000
  4.1   AGENCY
  4.2   This appropriation is to the 
  4.3   commissioner of the pollution control 
  4.4   agency for combined sewer overflow 
  4.5   grants to the city of Red Wing under 
  4.6   Minnesota Statutes, section 116.162, 
  4.7   for projects to be begun in fiscal year 
  4.8   1996.  The total amount of grants under 
  4.9   this section must not exceed one-half 
  4.10  of the capital costs of the city of Red 
  4.11  Wing to abate combined sewer overflow. 
  4.12  Sec. 7.  SCIENCE      
  4.13  MUSEUM OF MINNESOTA                                     200,000
  4.14  This appropriation is added to the 
  4.15  appropriation in Laws 1994, chapter 
  4.16  643, section 2, subdivision 15, as 
  4.17  amended by this article, but is not 
  4.18  subject to the matching requirement. 
  4.19  Sec. 8.  HUMAN SERVICES                                 228,000
  4.20  This appropriation is from the general 
  4.21  fund to the commissioner of human 
  4.22  services to demolish building No. 30 at 
  4.23  the Moose Lake Regional Treatment 
  4.24  Center.  The commissioner shall seek 
  4.25  reimbursement through the federal 
  4.26  Health Care Finance Agency based on 
  4.27  Medicare principles of reimbursements.  
  4.28  Sec. 9.  TRANSPORTATION                               8,000,000
  4.29  This appropriation is from the 
  4.30  Minnesota state transportation fund for 
  4.31  grants to political subdivisions for 
  4.32  the construction and reconstruction of 
  4.33  key bridges on the state transportation 
  4.34  system. 
  4.35  Political subdivisions may use grants 
  4.36  made under this section for purposes of 
  4.37  construction and reconstruction of 
  4.38  bridges, including: 
  4.39  (1) matching federal-aid grants for the 
  4.40  construction or reconstruction of key 
  4.41  bridges; 
  4.42  (2) paying the costs of abandoning an 
  4.43  existing bridge that is deficient and 
  4.44  in need of replacement, but where no 
  4.45  replacement will be made; 
  4.46  (3) paying the costs of constructing a 
  4.47  road or street that would facilitate 
  4.48  the abandonment of an existing bridge 
  4.49  determined by the commissioner to be 
  4.50  deficient, if the commissioner 
  4.51  determines that construction of the 
  4.52  road or street is more cost efficient 
  4.53  than replacement of the existing 
  4.54  bridge; and 
  4.55  (4) paying the costs of preliminary 
  4.56  engineering and environmental studies 
  4.57  authorized under Minnesota Statutes, 
  4.58  section 174.50, subdivision 6a. 
  5.1   Sec. 10.  EDUCATION                                  
  5.2   Subdivision 1.  To the commissioner of
  5.3   education for the purposes specified
  5.4   in this section                                      23,670,000
  5.5   Subd. 2.  Big Lake                                    9,770,000
  5.6   This appropriation is from the maximum 
  5.7   effort school loan fund to the 
  5.8   commissioner of education to make a 
  5.9   capital loan to independent school 
  5.10  district No. 727, Big Lake.  $9,770,000 
  5.11  is approved for a capital loan to 
  5.12  independent school district No. 727, 
  5.13  Big Lake. 
  5.14  Subd. 3.  Kelliher                                    6,900,000
  5.15  This appropriation is from the maximum 
  5.16  effort school loan fund to the 
  5.17  commissioner of education to make a 
  5.18  capital loan to independent school 
  5.19  district No. 36, Kelliher, 
  5.20  notwithstanding the priority in Laws 
  5.21  1993, chapter 224, article 5, section 
  5.22  45.  $6,900,000 is approved for a 
  5.23  capital loan to independent school 
  5.24  district No. 36, Kelliher. 
  5.25  Subd. 4.  Littlefork-Big Falls                        7,000,000
  5.26  This appropriation is from the maximum 
  5.27  effort school loan fund to the 
  5.28  commissioner of education to make a 
  5.29  capital loan to independent school 
  5.30  district No. 362, Littlefork-Big Falls, 
  5.31  notwithstanding the priority in Laws 
  5.32  1993, chapter 224, article 5, section 
  5.33  45.  $7,000,000 is approved for a 
  5.34  capital loan to independent school 
  5.35  district No. 362. 
  5.36  Sec. 11.  MINNESOTA  
  5.37  STATE COLLEGES AND UNIVERSITIES                         900,000
  5.38  This appropriation is to the board of 
  5.39  trustees of the Minnesota state 
  5.40  colleges and universities to acquire 
  5.41  land in the vicinity of Metropolitan 
  5.42  state university. 
  5.43  The state board for community colleges 
  5.44  or the board of trustees of the 
  5.45  Minnesota state colleges and 
  5.46  universities may acquire land in the 
  5.47  vicinity of Normandale community 
  5.48  college for parking facilities. 
  5.49  Sec. 12.  PUBLIC SAFETY                              1,000,000
  5.50  This appropriation is for a grant to 
  5.51  the city of Parkers Prairie to assist 
  5.52  with the design and construction of a 
  5.53  fire hall, city hall, and water tower 
  5.54  to replace those damaged by a propane 
  5.55  explosion in April 1995. 
  5.56  Sec. 13.  BOND SALE EXPENSES                             16,000
  5.57  To the commissioner of finance for bond 
  6.1   sale expenses under Minnesota Statutes, 
  6.2   section 16A.641, subdivision 8. 
  6.3   Sec. 14.  BOND SALE SCHEDULE                                    
  6.4   The commissioner of finance shall 
  6.5   schedule the sale of state general 
  6.6   obligation bonds so that, during the 
  6.7   biennium ending June 30, 1997, no more 
  6.8   than $458,624,000 will need to be 
  6.9   transferred from the general fund to 
  6.10  the state bond fund to pay principal 
  6.11  and interest due and to become due on 
  6.12  outstanding state general obligation 
  6.13  bonds.  During the biennium, before 
  6.14  each sale of state general obligation 
  6.15  bonds, the commissioner of finance 
  6.16  shall calculate the amount of debt 
  6.17  service payments needed on bonds 
  6.18  previously issued and shall estimate 
  6.19  the amount of debt service payments 
  6.20  that will be needed on the bonds 
  6.21  scheduled to be sold, the commissioner 
  6.22  shall adjust the amount of bonds 
  6.23  scheduled to be sold so as to remain 
  6.24  within the limit set by this section.  
  6.25  The amount needed to make the debt 
  6.26  service payments is appropriated from 
  6.27  the general fund as provided in 
  6.28  Minnesota Statutes, section 16A.641. 
  6.29     Sec. 15.  [BOND SALE AUTHORIZATION.] 
  6.30     Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
  6.31  appropriated in this article from the bond proceeds fund, the 
  6.32  commissioner of finance, on request of the governor, shall sell 
  6.33  and issue bonds of the state in an amount up to $10,870,000 in 
  6.34  the manner, upon the terms, and with the effect prescribed by 
  6.35  Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
  6.36  Minnesota Constitution, article XI, sections 4 to 7. 
  6.37     Subd. 2.  [TRANSPORTATION FUND.] To provide the money 
  6.38  appropriated in this article from the state transportation fund, 
  6.39  the commissioner of finance, on request of the governor, shall 
  6.40  sell and issue general obligation bonds of the state in an 
  6.41  amount up to $8,000,000 in the manner, upon the terms, and with 
  6.42  the effect prescribed by Minnesota Statutes, sections 16A.631 to 
  6.43  16A.675, and by the Minnesota Constitution, article XI, sections 
  6.44  4 to 7.  The proceeds of the bonds, except accrued interest and 
  6.45  any premium received on the sale of the bonds, must be credited 
  6.46  to a bond proceeds account in the state transportation fund. 
  6.47     Subd. 3.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] To provide the 
  6.48  money appropriated by this article from the maximum effort 
  7.1   school loan fund, the commissioner of finance, on request of the 
  7.2   governor, shall sell and issue bonds of the state in an amount 
  7.3   up to $23,670,000 in the manner, on the terms, and with the 
  7.4   effect prescribed by Minnesota Statutes, sections 16A.631 to 
  7.5   16A.675, and by the Minnesota Constitution, article XI, sections 
  7.6   4 to 7.  The proceeds of the bonds, except accrued interest and 
  7.7   any premium received on the sale of the bonds, must be credited 
  7.8   to a bond proceeds account in the maximum effort school loan 
  7.9   fund. 
  7.10     Sec. 16.  [BOND SALE AUTHORIZATION REDUCED.] 
  7.11     The bond sale authorization in Laws 1994, chapter 643, 
  7.12  section 31, subdivision 1, is reduced by $3,000,000. 
  7.13     Sec. 17.  [16A.642] [PERIODIC REPORTS ON THE STATUS OF 
  7.14  AUTHORIZED AND OUTSTANDING STATE BONDS.] 
  7.15     The commissioner of finance shall report to the chairs of 
  7.16  the senate committee on finance and the house of representatives 
  7.17  committee on ways and means by February 1 of each even-numbered 
  7.18  year on the following: 
  7.19     (1) all state building projects for which bonds have been 
  7.20  authorized and issued by a law enacted more than five years 
  7.21  before February 1 of that even-numbered year and of which 20 
  7.22  percent or less of a project's authorization has been encumbered 
  7.23  or otherwise obligated for the purpose stated in the law 
  7.24  authorizing the issue; and 
  7.25     (2) all state bonds authorized and issued for purposes 
  7.26  other than building projects reported under clause (1), by a law 
  7.27  enacted more than five years before February 1 of that 
  7.28  even-numbered year, and the amount of any balance that is 
  7.29  unencumbered or otherwise not obligated for the purpose stated 
  7.30  in the law authorizing the issue. 
  7.31     The commissioner shall also report on bond authorizations 
  7.32  or bond proceed balances that may be canceled because projects 
  7.33  have been canceled, completed, or otherwise concluded, or 
  7.34  because the purposes for which the bonds were authorized or 
  7.35  issued have been canceled, completed, or otherwise concluded.  
  7.36     Sec. 18.  Minnesota Statutes 1994, section 16A.695, 
  8.1   subdivision 1, is amended to read: 
  8.2      Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  8.3   subdivision apply to this section.  
  8.4      (b) "State bond financed property" means property acquired 
  8.5   or bettered in whole or in part with the proceeds of state 
  8.6   general obligation bonds authorized to be issued under article 
  8.7   XI, section 5, clause (a), of the Minnesota Constitution. 
  8.8      (c) "Public officer or agency" means a state officer or 
  8.9   agency, the University of Minnesota, the Minnesota historical 
  8.10  society, and any county, home rule charter or statutory city, 
  8.11  school district, special purpose district, or other public 
  8.12  entity, or any officer or employee thereof. 
  8.13     (d) "Fair market value" means, with respect to the sale of 
  8.14  state bond financed property, the price that would be paid by a 
  8.15  willing and qualified buyer to a willing and qualified seller as 
  8.16  determined by an appraisal of the property, or the price bid by 
  8.17  a purchaser under a public bid procedure after reasonable public 
  8.18  notice. 
  8.19     (e) "Outstanding state bonds" means the dollar amount 
  8.20  certified by the commissioner, upon the request of a public 
  8.21  officer or agency, to be the principal amount of state bonds, 
  8.22  including any refunding bonds, issued with respect to the state 
  8.23  bond financed property, less the principal amount of state bonds 
  8.24  paid or defeased before the date of the request. 
  8.25     Sec. 19.  Minnesota Statutes 1994, section 16A.695, 
  8.26  subdivision 2, is amended to read: 
  8.27     Subd. 2.  [LEASES AND MANAGEMENT CONTRACTS.] (a) A public 
  8.28  officer or agency that is authorized by law to lease or enter 
  8.29  into a management contract with respect to state bond financed 
  8.30  property shall comply with this subdivision. 
  8.31     (b) The lease or management contract may be entered into 
  8.32  for the express purpose of carrying out a governmental program 
  8.33  established or authorized by law and established by official 
  8.34  action of the contracting public officer or agency, in 
  8.35  accordance with orders of the commissioner intended to ensure 
  8.36  the legality and tax-exempt status of bonds issued to finance 
  9.1   the property, and with the approval of the commissioner.  A 
  9.2   lease or management contract, including any renewals that are 
  9.3   solely at the option of the lessee, must be for a term 
  9.4   substantially less than the useful life of the property, but may 
  9.5   allow renewal beyond that term upon a determination by the 
  9.6   lessor that the use continues to carry out the governmental 
  9.7   program.  A lease or management contract must be terminable by 
  9.8   the contracting public officer or agency if the other 
  9.9   contracting party defaults under the contract or if the 
  9.10  governmental program is terminated or changed, and must provide 
  9.11  for program oversight by the contracting public officer or 
  9.12  agency.  Money received by the public officer or agency under 
  9.13  the lease or management contract that is not needed to pay and 
  9.14  not authorized to be used to pay operating costs of the 
  9.15  property, or to pay the principal, interest, redemption 
  9.16  premiums, and other expenses when due on debt related to the 
  9.17  property other than state bonds, must be: 
  9.18     (1) paid to the commissioner in the same proportion as the 
  9.19  state bond financing is to the total public debt financing for 
  9.20  the property, excluding debt issued by a unit of government for 
  9.21  which it has no financial liability; 
  9.22     (2) deposited in the state bond fund,; and 
  9.23     (3) used to pay or redeem or defease bonds issued to 
  9.24  finance the property in accordance with the commissioner's order 
  9.25  authorizing their issuance;.  
  9.26     The money paid to the commissioner is appropriated for this 
  9.27  purpose. 
  9.28     (c) With the approval of the commissioner, a lease or 
  9.29  management contract between a city and a nonprofit corporation 
  9.30  under section 471.191, subdivision 1, need not require the 
  9.31  lessee to pay rentals sufficient to pay the principal, interest, 
  9.32  redemption premiums, and other expenses when due with respect to 
  9.33  state bonds issued to acquire and better the facilities. 
  9.34     Sec. 20.  Minnesota Statutes 1994, section 16A.695, 
  9.35  subdivision 3, is amended to read: 
  9.36     Subd. 3.  [SALE OF PROPERTY.] A public officer or agency 
 10.1   shall not sell any state bond financed property unless the 
 10.2   public officer or agency determines by official action that the 
 10.3   property is no longer usable or needed by the public officer or 
 10.4   agency to carry out the governmental program for which it was 
 10.5   acquired or constructed, the sale is made as authorized by law, 
 10.6   the sale is made for fair market value, and the sale is approved 
 10.7   by the commissioner.  If any state bonds issued to purchase or 
 10.8   better the state bond financed property that is sold remain 
 10.9   outstanding on the date of sale, the net proceeds of sale must 
 10.10  be applied as follows: 
 10.11     (1) if the state bond financed property was acquired and 
 10.12  bettered solely with state bond proceeds, the net proceeds of 
 10.13  sale must be paid to the commissioner, deposited in the state 
 10.14  bond fund, and used to pay or redeem or defease the outstanding 
 10.15  state bonds in accordance with the commissioner's order 
 10.16  authorizing their issuance, and the proceeds are appropriated 
 10.17  for this purpose; or 
 10.18     (2) if the state bond financed property was acquired or 
 10.19  bettered partly with state bond proceeds and partly with other 
 10.20  money, the net proceeds of sale must first be used:  first, to 
 10.21  pay or redeem or defease the state bonds as provided in clause 
 10.22  (1), and to the state the amount of state bond proceeds used to 
 10.23  acquire or better the property; second, to pay in full any 
 10.24  outstanding public or private debt incurred to acquire or better 
 10.25  the property; and third, any excess over the amount needed 
 10.26  for that purpose those purposes must be divided in proportion to 
 10.27  the shares contributed to its the acquisition or betterment of 
 10.28  the property and paid to the interested public and private 
 10.29  entities, other than any private lender already paid in full, 
 10.30  and the proceeds are appropriated for this purpose. 
 10.31     When all of the net proceeds of sale have been applied as 
 10.32  provided in this subdivision, this section no longer applies to 
 10.33  the property. 
 10.34     Sec. 21.  Minnesota Statutes 1994, section 16A.695, is 
 10.35  amended by adding a subdivision to read: 
 10.36     Subd. 3a.  [INVOLUNTARY SALE OF PROPERTY.] Notwithstanding 
 11.1   subdivision 3, this subdivision applies to the sale of state 
 11.2   bond financed property by a lender that has provided money to 
 11.3   acquire or better the property.  Purchase by the lender in a 
 11.4   foreclosure sale, acceptance of a deed in lieu of foreclosure, 
 11.5   or enforcement of a security interest in personal property, by 
 11.6   the lender, is not a sale.  Following purchase by the lender, 
 11.7   the lender shall not operate the property in a manner 
 11.8   inconsistent with the governmental program established as 
 11.9   provided in subdivision 2, paragraph (b).  The lender shall 
 11.10  exercise its best efforts to sell the property to a third party 
 11.11  as soon as feasible following acquisition of marketable title to 
 11.12  the property by the lender.  A sale by the lender must be made 
 11.13  as authorized by law and must be made for fair market value.  
 11.14     Sec. 22.  Minnesota Statutes 1994, section 124.431, 
 11.15  subdivision 2, is amended to read: 
 11.16     Subd. 2.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
 11.17  school district or a joint powers district that intends to apply 
 11.18  for a capital loan must submit a proposal to the commissioner 
 11.19  for review and comment according to section 121.15 on or before 
 11.20  July 1 of an odd-numbered year.  The commissioner must prepare a 
 11.21  review and comment on the proposed facility, regardless of the 
 11.22  amount of the capital expenditure required to construct the 
 11.23  facility.  In addition to the information provided under section 
 11.24  121.15, subdivision 7, the commissioner shall consider the 
 11.25  following criteria in determining whether to make a positive 
 11.26  review and comment.  
 11.27     (a) To grant a positive review and comment the commissioner 
 11.28  must determine that all of the following conditions are met: 
 11.29     (1) the facilities are needed for pupils for whom no 
 11.30  adequate facilities exist or will exist; 
 11.31     (2) the district will serve, on average, at least 80 pupils 
 11.32  per grade or is eligible for sparsity revenue; 
 11.33     (3) no form of cooperation with another district would 
 11.34  provide the necessary facilities; 
 11.35     (4) the facilities are comparable in size and quality to 
 11.36  facilities recently constructed in other districts that have 
 12.1   similar enrollments; 
 12.2      (5) the facilities are comparable in size and quality to 
 12.3   facilities recently constructed in other districts that are 
 12.4   financed without a capital loan; 
 12.5      (6) the district is projected to maintain or increase its 
 12.6   average daily membership over the next five years or is eligible 
 12.7   for sparsity revenue; 
 12.8      (7) the current facility poses a threat to the life, 
 12.9   health, and safety of pupils, and cannot reasonably be brought 
 12.10  into compliance with fire, health, or life safety codes; 
 12.11     (8) the district has made a good faith effort, as evidenced 
 12.12  by its maintenance expenditures, to adequately maintain the 
 12.13  existing facility during the previous ten years and to comply 
 12.14  with fire, health, and life safety codes and state and federal 
 12.15  requirements for handicapped accessibility; 
 12.16     (9) the district has made a good faith effort to encourage 
 12.17  integration of social service programs within the new facility; 
 12.18  and 
 12.19     (10) evaluations by school boards of adjacent districts 
 12.20  have been received. 
 12.21     (b) The commissioner may grant a negative review and 
 12.22  comment if: 
 12.23     (1) the state demographer has examined the population of 
 12.24  the communities to be served by the facility and determined that 
 12.25  the communities have not grown during the previous five years; 
 12.26     (2) the state demographer determines that the economic and 
 12.27  population bases of the communities to be served by the facility 
 12.28  are not likely to grow or to remain at a level sufficient, 
 12.29  during the next ten years, to ensure use of the entire facility; 
 12.30     (3) the need for facilities could be met within the 
 12.31  district or adjacent districts at a comparable cost by leasing, 
 12.32  repairing, remodeling, or sharing existing facilities or by 
 12.33  using temporary facilities; 
 12.34     (4) the district plans do not include cooperation and 
 12.35  collaboration with health and human services agencies and other 
 12.36  political subdivisions; or 
 13.1      (5) if the application is for new construction, an existing 
 13.2   facility that would meet the district's needs could be purchased 
 13.3   at a comparable cost from any other source within the area. 
 13.4      Sec. 23.  Minnesota Statutes 1994, section 124.431, 
 13.5   subdivision 5, is amended to read: 
 13.6      Subd. 5.  [DISTRICT APPLICATION FOR CAPITAL LOAN.] The 
 13.7   school board of a district desiring a capital loan shall adopt a 
 13.8   resolution stating the amount proposed to be borrowed, the 
 13.9   purpose for which the debt is to be incurred, and an estimate of 
 13.10  the dates when the facilities for which the loan is requested 
 13.11  will be contracted for and completed.  Applications for loans 
 13.12  must be accompanied by a copy of the adopted board resolution 
 13.13  and copies of the adjacent district evaluations.  The evaluation 
 13.14  shall be retained by the commissioner as part of a permanent 
 13.15  record of the district submitting the evaluation. 
 13.16     Applications must be in the form and accompanied by the 
 13.17  additional data required by the commissioner.  Applications must 
 13.18  be received by the commissioner by November September 1 of an 
 13.19  odd-numbered year.  A district must resubmit an application each 
 13.20  odd-numbered year.  Capital loan applications that do not 
 13.21  receive voter approval or are not approved in law cancel July 1 
 13.22  of the year following application.  When an application is 
 13.23  received, the commissioner shall obtain from the commissioner of 
 13.24  revenue the information in the revenue department's official 
 13.25  records that is required to be used in computing the debt limit 
 13.26  of the district under section 475.53, subdivision 4. 
 13.27     Sec. 24.  Minnesota Statutes 1994, section 124.431, 
 13.28  subdivision 6, is amended to read: 
 13.29     Subd. 6.  [STATE BOARD REVIEW; DISTRICT PROPOSALS.] By 
 13.30  January November 1 of each odd-numbered year, the state board 
 13.31  must review all applications for capital loans that have 
 13.32  received a positive review and comment.  When reviewing 
 13.33  applications, the state board shall consider whether the 
 13.34  criteria in subdivision 2 have been met.  The state board may 
 13.35  not approve an application if all of the required deadlines have 
 13.36  not been met.  The state board may either approve or reject an 
 14.1   application for a capital loan. 
 14.2      Sec. 25.  Minnesota Statutes 1994, section 124.431, 
 14.3   subdivision 7, is amended to read: 
 14.4      Subd. 7.  [RECOMMENDATIONS OF THE COMMISSIONER.] The 
 14.5   commissioner shall examine and consider applications for capital 
 14.6   loans that have been approved by the state board of education, 
 14.7   and promptly notify any district rejected by the state board of 
 14.8   the state board's decision.  
 14.9      The commissioner shall report each capital loan that has 
 14.10  been approved by the state board and that has received voter 
 14.11  approval to the education committees of the legislature by 
 14.12  February January 1 of each even-numbered year.  The commissioner 
 14.13  must not report a capital loan that has not received voter 
 14.14  approval.  The commissioner shall also report on the money 
 14.15  remaining in the capital loan account and, if necessary, request 
 14.16  that another bond issue be authorized. 
 14.17     Sec. 26.  Minnesota Statutes 1994, section 124.431, 
 14.18  subdivision 10, is amended to read: 
 14.19     Subd. 10.  [DISTRICT REFERENDUM.] After receipt of the 
 14.20  review and comment on the project and before February January 1 
 14.21  of the even-numbered year, the question authorizing the 
 14.22  borrowing of money for the facilities must be submitted by the 
 14.23  school board to the voters of the district at a regular or 
 14.24  special election.  The question submitted must state the total 
 14.25  amount to be borrowed from all sources.  Approval of a majority 
 14.26  of those voting on the question is sufficient to authorize the 
 14.27  issuance of the obligations on public sale in accordance with 
 14.28  chapter 475.  The face of the ballot must include the following 
 14.29  statement:  "APPROVAL OF THIS QUESTION DOES NOT GUARANTEE THAT 
 14.30  THE SCHOOL DISTRICT WILL RECEIVE A CAPITAL LOAN FROM THE STATE.  
 14.31  THE LOAN MUST BE APPROVED BY THE STATE LEGISLATURE AND IS 
 14.32  DEPENDENT ON AVAILABLE FUNDING."  The district shall mail to the 
 14.33  commissioner of education a certificate by the clerk showing the 
 14.34  vote at the election. 
 14.35     Sec. 27.  Minnesota Statutes 1994, section 124.494, 
 14.36  subdivision 2, is amended to read: 
 15.1      Subd. 2.  [REVIEW BY COMMISSIONER.] (a) Any group of 
 15.2   districts that submits an application for a grant shall submit a 
 15.3   proposal to the commissioner for review and comment under 
 15.4   section 121.15, and the commissioner shall prepare a review and 
 15.5   comment on the proposed facility by July 1 of an odd-numbered 
 15.6   year, regardless of the amount of the capital expenditure 
 15.7   required to acquire, construct, remodel or improve the secondary 
 15.8   facility.  The commissioner must not approve an application for 
 15.9   an incentive grant for any secondary facility unless the 
 15.10  facility receives a favorable review and comment under section 
 15.11  121.15 and the following criteria are met: 
 15.12     (1) a minimum of two or more districts, with kindergarten 
 15.13  to grade 12 enrollments in each district of no more than 1,200 
 15.14  pupils, enter into a joint powers agreement; 
 15.15     (2) a joint powers board representing all participating 
 15.16  districts is established under section 471.59 to govern the 
 15.17  cooperative secondary facility; 
 15.18     (3) the planned secondary facility will result in the joint 
 15.19  powers district meeting the requirements of Minnesota Rules, 
 15.20  parts 3500.2010 and 3500.2110; 
 15.21     (4) at least 198 pupils would be served in grades 10 to 12, 
 15.22  264 pupils would be served in grades 9 to 12, or 396 pupils 
 15.23  would be served in grades 7 to 12; 
 15.24     (5) no more than one superintendent is employed by the 
 15.25  joint powers board as a result of the cooperative secondary 
 15.26  facility agreement; 
 15.27     (6) a statement of need is submitted, that may include 
 15.28  reasons why the current secondary facilities are inadequate, 
 15.29  unsafe or inaccessible to the handicapped; 
 15.30     (7) an educational plan is prepared, that includes input 
 15.31  from both community and professional staff; 
 15.32     (8) a combined seniority list for all participating 
 15.33  districts is developed by the joint powers board; 
 15.34     (9) an education program is developed that provides for 
 15.35  more learning opportunities and course offerings, including the 
 15.36  offering of advanced placement courses, for students than is 
 16.1   currently available in any single member district; 
 16.2      (10) a plan is developed for providing instruction of any 
 16.3   resident students in other districts when distance to the 
 16.4   secondary education facility makes attendance at the facility 
 16.5   unreasonably difficult or impractical; and 
 16.6      (11) the joint powers board established under clause (2) 
 16.7   discusses with technical colleges located in the area how 
 16.8   vocational education space in the cooperative secondary facility 
 16.9   could be jointly used for secondary and post-secondary purposes. 
 16.10     (b) To the extent possible, the joint powers board is 
 16.11  encouraged to provide for severance pay or for early retirement 
 16.12  incentives under section 125.611, for any teacher or 
 16.13  administrator, as defined under section 125.12, subdivision 1, 
 16.14  who is placed on unrequested leave as a result of the 
 16.15  cooperative secondary facility agreement. 
 16.16     (c) For the purpose of paragraph (a), clause (8), each 
 16.17  school district must be considered to have started school each 
 16.18  year on the same date. 
 16.19     (d) The districts may develop a plan that provides for the 
 16.20  location of social service, health, and other programs serving 
 16.21  pupils and community residents within the cooperative secondary 
 16.22  facility.  The commissioner shall consider this plan when 
 16.23  preparing a review and comment on the proposed facility. 
 16.24     (e) The districts shall schedule and conduct a meeting on 
 16.25  library services.  The school districts, in cooperation with the 
 16.26  regional public library system and its appropriate member 
 16.27  libraries, shall discuss the possibility of including jointly 
 16.28  operated library services at the cooperative secondary facility. 
 16.29     (f) The school board of a district that has reorganized 
 16.30  under section 122.23 or 122.243 and that is applying for a grant 
 16.31  for remodeling or improving an existing facility may act in the 
 16.32  place of a joint powers board to meet the criteria of this 
 16.33  subdivision. 
 16.34     Sec. 28.  Minnesota Statutes 1994, section 124.494, 
 16.35  subdivision 3, is amended to read: 
 16.36     Subd. 3.  [DISTRICT PROCEDURES.] A joint powers board of a 
 17.1   secondary district established under subdivision 2 or a school 
 17.2   board of a reorganized district that intends to apply for a 
 17.3   grant shall adopt a resolution stating the proposed costs of the 
 17.4   project, the purpose for which the costs are to be incurred, and 
 17.5   an estimate of the dates when the facilities for which the grant 
 17.6   is requested will be contracted for and completed.  Applications 
 17.7   for the state grants must be accompanied by (a) a copy of the 
 17.8   resolution, (b) a certificate by the clerk and treasurer of the 
 17.9   joint powers board showing the current outstanding indebtedness 
 17.10  of each member district, and (c) a certificate by the county 
 17.11  auditor of each county in which a portion of the joint powers 
 17.12  district lies showing the information in the auditor's official 
 17.13  records that is required to be used in computing the debt limit 
 17.14  of the district under section 475.53, subdivision 4.  The 
 17.15  clerk's and treasurer's certificate shall show, as to each 
 17.16  outstanding bond issue of each member district, the amount 
 17.17  originally issued, the purpose for which issued, the date of 
 17.18  issue, the amount remaining unpaid as of the date of the 
 17.19  resolution, and the interest rates and due dates and amounts of 
 17.20  principal thereon.  Applications and necessary data must be in 
 17.21  the form prescribed by the commissioner and the rules of the 
 17.22  state board of education.  Applications must be received by the 
 17.23  commissioner by September 1 of an odd-numbered year.  When an 
 17.24  application is received, the commissioner shall obtain from the 
 17.25  commissioner of revenue, and from the public utilities 
 17.26  commission when required, the information in their official 
 17.27  records that is required to be used in computing the debt limit 
 17.28  of the joint powers district under section 475.53, subdivision 4.
 17.29     Sec. 29.  Minnesota Statutes 1994, section 124.494, 
 17.30  subdivision 4, is amended to read: 
 17.31     Subd. 4.  [AWARD OF GRANTS.] By November 1 of the 
 17.32  odd-numbered year, the commissioner shall examine and consider 
 17.33  all applications for grants, and if any district is found not 
 17.34  qualified, the commissioner shall promptly notify that board.  
 17.35     A grant award is subject to verification by the district as 
 17.36  specified in subdivision 6.  A grant award for a new facility 
 18.1   must not be made until the site of the secondary facility has 
 18.2   been determined.  A grant award to remodel or improve an 
 18.3   existing facility must not be made until the districts have 
 18.4   reorganized.  If the total amount of the approved applications 
 18.5   exceeds the amount that is or can be made available, the 
 18.6   commissioner shall allot the available amount equally between 
 18.7   the approved applicant districts.  The commissioner shall 
 18.8   promptly certify to each qualified district the amount, if any, 
 18.9   of the grant awarded to it. 
 18.10     Sec. 30.  Minnesota Statutes 1994, section 446A.12, 
 18.11  subdivision 1, is amended to read: 
 18.12     Subdivision 1.  [BONDING AUTHORITY.] The authority may 
 18.13  issue negotiable bonds in a principal amount that the authority 
 18.14  determines necessary to provide sufficient funds for achieving 
 18.15  its purposes, including the making of loans and purchase of 
 18.16  securities, the payment of interest on bonds of the authority, 
 18.17  the establishment of reserves to secure its bonds, the payment 
 18.18  of fees to a third party providing credit enhancement, and the 
 18.19  payment of all other expenditures of the authority incident to 
 18.20  and necessary or convenient to carry out its corporate purposes 
 18.21  and powers, but not including the making of grants.  Bonds of 
 18.22  the authority may be issued as bonds or notes or in any other 
 18.23  form authorized by law.  The principal amount of bonds issued 
 18.24  and outstanding under this section at any time may not exceed 
 18.25  $350,000,000 $450,000,000, excluding bonds for which refunding 
 18.26  bonds or crossover refunding bonds have been issued. 
 18.27     Sec. 31.  Laws 1994, chapter 632, article 3, section 12, is 
 18.28  amended to read: 
 18.29  Sec. 12.  MILITARY AFFAIRS                              50,000
 18.30  This appropriation is to the adjutant 
 18.31  general for a grant to the Minnesota 
 18.32  National Guard youth camp to set up and 
 18.33  provide initial funding for a 
 18.34  foundation to run the camp.  The 
 18.35  appropriation must be is available only 
 18.36  as matched, dollar for dollar, by an 
 18.37  equal amount from nonstate sources. 
 18.38     Sec. 32.  Laws 1994, chapter 643, section 2, subdivision 
 18.39  15, is amended to read: 
 19.1   Subd. 15.  Science Museum of
 19.2   Minnesota                                            1,000,000 
 19.3   This appropriation is for a grant to 
 19.4   the city of St. Paul to plan for 
 19.5   predesign and design of a science 
 19.6   museum as authorized by section 81, 
 19.7   subject to new Minnesota Statutes, 
 19.8   section 16A.695. 
 19.9   This appropriation is not available 
 19.10  until the city of St. Paul has 
 19.11  delivered to the commissioner a 
 19.12  certified copy of a resolution of the 
 19.13  city of St. Paul requesting payment and 
 19.14  evidencing the commitment of the city 
 19.15  to make a city-owned riverfront site 
 19.16  available for the museum at no cost to 
 19.17  the nonprofit organization that will 
 19.18  operate the museum and the commissioner 
 19.19  has determined that the necessary 
 19.20  financing to complete the design of the 
 19.21  museum $2 has been committed by 
 19.22  nonstate sources for each $1 from this 
 19.23  appropriation. 
 19.24     Sec. 33.  Laws 1994, chapter 643, section 10, subdivision 
 19.25  10, is amended to read: 
 19.26  Subd. 10.  Rochester Technical College                 1,200,000
 19.27  This appropriation is to prepare 
 19.28  working drawings for an integrated 
 19.29  campus in accordance with this 
 19.30  subdivision. 
 19.31  (1) Rochester independent school 
 19.32  district No. 535 and The state board of 
 19.33  technical colleges may enter into an 
 19.34  agreement for the sale of the Rochester 
 19.35  Technical College.  The sale is 
 19.36  contingent on state board of technical 
 19.37  colleges approval and passage of a 
 19.38  referendum by the voters in Rochester 
 19.39  school district No. 535.  The sale 
 19.40  price shall equal not be less than the 
 19.41  appraised value. 
 19.42  It is the intent of the legislature 
 19.43  that no technical college program 
 19.44  reduction, apart from normal program 
 19.45  review, shall occur as a result of this 
 19.46  sale. 
 19.47  (2) The sale shall not cause the 
 19.48  technical college to lease space or to 
 19.49  move to any temporary site. 
 19.50  (3) Prior to the preparation of design 
 19.51  documents, the post-secondary boards 
 19.52  and the relevant campus staff shall 
 19.53  jointly prepare a master academic plan 
 19.54  for an integrated campus for the 
 19.55  Rochester center facility.  The boards 
 19.56  shall consider the creation of a 
 19.57  polytechnic university.  Program review 
 19.58  by the higher education coordinating 
 19.59  board shall be done in accordance with 
 19.60  Minnesota Statutes, section 136A.04.  
 19.61  The plan shall be submitted to the 
 20.1   higher education board for approval by 
 20.2   December 1, 1994.  If approved, the 
 20.3   plan shall be submitted for review to 
 20.4   the higher education finance divisions 
 20.5   by January 15, 1995.  The state board 
 20.6   of technical colleges, in cooperation 
 20.7   with the state board of community 
 20.8   colleges, shall not proceed with 
 20.9   working drawings until after passage of 
 20.10  the referendum and after the master 
 20.11  academic plan has been approved by the 
 20.12  higher education board.  
 20.13  (4) The proceeds from the sale of the 
 20.14  technical college to Rochester 
 20.15  independent school district No. 535, 
 20.16  are appropriated for the planning and 
 20.17  construction necessary to integrate 
 20.18  technical college programs into the 
 20.19  Rochester center and to add or modify 
 20.20  space where necessary.  The new 
 20.21  technical college program space must be 
 20.22  attached to and must maximize the 
 20.23  current services, space, and programs 
 20.24  of the technical college, community 
 20.25  college, state university, and 
 20.26  University of Minnesota cooperative 
 20.27  campus.  The state board of technical 
 20.28  colleges may not begin construction of 
 20.29  this project until the legislature has 
 20.30  approved the construction plans. 
 20.31  (5) The state board of technical 
 20.32  colleges shall develop a plan to 
 20.33  relocate to the Austin, Faribault, and 
 20.34  other Southeastern Minnesota campuses 
 20.35  all Rochester campus programs that are 
 20.36  not essential to the integrated mission 
 20.37  planned for the Rochester center 
 20.38  facility.  This plan must be completed 
 20.39  prior to preparing design documents for 
 20.40  the technical college addition to the 
 20.41  Rochester center. 
 20.42  (6) The state board of technical 
 20.43  colleges shall consider relocating the 
 20.44  horticulture technology program from 
 20.45  the Rochester campus to the Austin 
 20.46  campus of Riverland technical college 
 20.47  before the start of the 1995-1996 
 20.48  academic year. 
 20.49     Sec. 34.  Laws 1994, chapter 643, section 11, subdivision 
 20.50  8, is amended to read: 
 20.51  Subd. 8.  Minneapolis Community College                 375,000 
 20.52  This appropriation is to prepare 
 20.53  working drawings design documents to 
 20.54  remodel and construct new space at the 
 20.55  campus for joint use with Minneapolis 
 20.56  Technical College and Metropolitan 
 20.57  State University.  The appropriation is 
 20.58  available only after an approved master 
 20.59  academic plan has been developed for 
 20.60  the campus.  The master academic plan 
 20.61  shall be developed jointly with 
 20.62  representation from each of the public 
 20.63  post-secondary systems.  The higher 
 20.64  education board shall review the plan.  
 21.1   The appropriation is available if the 
 21.2   higher education board approves the 
 21.3   plan. 
 21.4      Sec. 35.  Laws 1994, chapter 643, section 11, subdivision 
 21.5   10, is amended to read: 
 21.6   Subd. 10.  North Hennepin Community College           6,000,000
 21.7   This appropriation is to plan 
 21.8   predesign, design, remodel, and 
 21.9   construct space for classrooms, labs 
 21.10  classroom, student services, learning 
 21.11  resource center, the campus center, and 
 21.12  administrative, and related space, and 
 21.13  to predesign and design through design 
 21.14  development the reuse of vacated space 
 21.15  including addition to and remodeling of 
 21.16  the learning resource center, labs, and 
 21.17  portions of the campus center.  This 
 21.18  appropriation may be used to predesign 
 21.19  and design this reuse and addition even 
 21.20  if its construction would require an 
 21.21  additional appropriation. 
 21.22     Sec. 36.  Laws 1994, chapter 643, section 11, subdivision 
 21.23  13, is amended to read: 
 21.24  Subd. 13.  Vermilion Community College                  120,000
 21.25  This appropriation is to prepare 
 21.26  schematic plans to remodel and 
 21.27  construct space for labs, classrooms, 
 21.28  student services, campus 
 21.29  center, learning resource center, and 
 21.30  institutional services.  The 
 21.31  appropriation is available only after a 
 21.32  master academic plan has been developed 
 21.33  for the campus and approved by the 
 21.34  higher education board.  The master 
 21.35  academic plan shall be developed 
 21.36  jointly with representation from each 
 21.37  of the public post-secondary systems. 
 21.38     Sec. 37.  Laws 1994, chapter 643, section 19, subdivision 
 21.39  8, is amended to read: 
 21.40  Subd. 8.  Battle Point 
 21.41  Historic Site                                           350,000
 21.42  For construction design of the Battle 
 21.43  Point historic site, preliminary plans 
 21.44  for which were authorized in Laws 1990, 
 21.45  chapter 610, article 1, section 17, and 
 21.46  Laws 1992, chapter 558, section 24, 
 21.47  subdivision 5.  
 21.48  Notwithstanding Laws 1990, chapter 610, 
 21.49  article 1, section 17, the planned 
 21.50  educational center will be owned by 
 21.51  independent school district No. 115, 
 21.52  Cass Lake-Bena, and is subject to 
 21.53  Minnesota Statutes, section 16A.695.  
 21.54  The center must be constructed on land 
 21.55  leased to the school district by the 
 21.56  Leech Lake Band of Chippewa Indians 
 21.57  under a ground lease having an initial 
 21.58  term of at least 20 years and a total 
 22.1   term of at least 40 years, including 
 22.2   renewal options.  The school district 
 22.3   must contract with the Leech Lake Band 
 22.4   to operate the center on behalf of the 
 22.5   council.  The center and all classes 
 22.6   and programs run by or through the 
 22.7   center must be open to the public. 
 22.8      Sec. 38.  Laws 1994, chapter 643, section 23, subdivision 
 22.9   7, is amended to read: 
 22.10  Subd. 7.  Forestry Air 
 22.11  Tanker Facilities                                       368,000
 22.12  To replace temporary buildings, upgrade 
 22.13  equipment, and construct fuel and fire 
 22.14  retardant spill containment systems at 
 22.15  air tanker bases at Bemidji, Hibbing, 
 22.16  and Brainerd, and replace the temporary 
 22.17  building at Bemidji. 
 22.18  $183,000 of this appropriation is for 
 22.19  state funding of the Bemidji site and 
 22.20  is contingent upon commitment of 
 22.21  $200,000 in matching funds from the 
 22.22  United States Bureau of Indian Affairs. 
 22.23     Sec. 39.  Laws 1994, chapter 643, section 23, subdivision 
 22.24  28, is amended to read: 
 22.25  Subd. 28.  Environmental     
 22.26  Learning Centers                             11,500,000 8,500,000
 22.27  This appropriation is to the 
 22.28  commissioner of natural resources to 
 22.29  plan, design, and construct facilities 
 22.30  owned by political subdivisions at 
 22.31  residential environmental learning 
 22.32  centers as provided in this subdivision 
 22.33  and new Minnesota Statutes, section 
 22.34  84.0875. 
 22.35  The appropriations in items (a) through 
 22.36  (e) are available as follows:  (1) of 
 22.37  the $7,500,000 total, $5,000,000 is 
 22.38  available only when the commissioner 
 22.39  has determined that matching money in 
 22.40  the sum of $17,500,000 $12,500,000 has 
 22.41  been committed by nonstate sources; and 
 22.42  (2) the remaining $2,500,000 is 
 22.43  available to the extent that matching 
 22.44  money in the amount of $2 for each $1 
 22.45  of state money is committed by nonstate 
 22.46  sources, as determined by the 
 22.47  commissioner, provided that money may 
 22.48  not be spent under this sentence until 
 22.49  the amount available, including 
 22.50  matching money, is sufficient to 
 22.51  complete a functional improvement. 
 22.52  (a) Long Lake Conservation Center                     1,200,000
 22.53  This appropriation is for a grant to 
 22.54  Aitkin county. 
 22.55  (b) Deep Portage Conservation Reserve                 1,470,000
 22.56  This appropriation is for a grant to 
 22.57  Cass county. 
 23.1   (c) Wolf Ridge Environmental    
 23.2   Learning Center                                       2,100,000
 23.3   This appropriation is for a grant to 
 23.4   independent school district No. 381, 
 23.5   Lake Superior. 
 23.6   (d) Northwoods Audubon Center                         1,080,000
 23.7   This appropriation is for a grant to 
 23.8   independent school district No. 2580, 
 23.9   East Central. 
 23.10  (e) Forest Resource Center                            1,650,000
 23.11  This appropriation is for a grant to 
 23.12  independent school district No. 229, 
 23.13  Lanesboro. 
 23.14  If land and improvements in Fillmore 
 23.15  county that were conveyed by the state 
 23.16  to Southern Minnesota Forest Resource 
 23.17  Center under Laws 1990, chapter 452, 
 23.18  section 7, are pledged as security for 
 23.19  a loan to assist with the completion of 
 23.20  this project, the right of reverter 
 23.21  retained by the state is waived in 
 23.22  favor of the lender. 
 23.23  (f) Agassiz Environmental   
 23.24  Learning Center                                         300,000
 23.25  This appropriation is for a grant to 
 23.26  the city of Fertile. 
 23.27  (g) Laurentian Environmental
 23.28  Learning Center                                         450,000
 23.29  This appropriation is for a grant to 
 23.30  independent school district No. 621, 
 23.31  Mounds View. 
 23.32  (h) Prairie Woods           
 23.33  Environmental Learning Center                           250,000
 23.34  This appropriation is for a grant to 
 23.35  Kandiyohi county. 
 23.36  (i) Prairie Wetlands        
 23.37  Environmental Learning Center                         3,000,000
 23.38  This appropriation is for a grant to 
 23.39  the city of Fergus Falls. 
 23.40  Appropriations in this subdivision must 
 23.41  be used for qualified capital 
 23.42  expenditures. 
 23.43     Sec. 40.  Laws 1994, chapter 643, section 26, subdivision 
 23.44  3, is amended to read: 
 23.45  Subd. 3.  RIM Conservation Easement 
 23.46  Acquisition                                           9,000,000
 23.47  This appropriation is for the purposes 
 23.48  specified in paragraphs (a) to (c). 
 23.49  (a) To acquire conservation easements 
 23.50  from landowners on marginal lands to 
 23.51  protect soil and water quality and to 
 24.1   support fish and wildlife habitat as 
 24.2   provided in Minnesota Statutes, section 
 24.3   103F.515. 
 24.4   (b) To acquire perpetual conservation 
 24.5   easements on existing type 1, 2, and 3 
 24.6   wetlands, adjacent lands, and for the 
 24.7   establishment of permanent cover on 
 24.8   adjacent lands, in accordance with 
 24.9   Minnesota Statutes, section 103F.516.  
 24.10  (c) Up to $300,000 of this 
 24.11  appropriation may be used to establish 
 24.12  and restore wetlands to provide credits 
 24.13  for deposit in the state wetland bank 
 24.14  established under Minnesota Statutes, 
 24.15  section 103G.2242, subdivision 1.  The 
 24.16  board may enter into agreements with 
 24.17  local government units and the 
 24.18  commissioner of transportation for this 
 24.19  purpose.  An agreement with the 
 24.20  commissioner of transportation may 
 24.21  provide for borrowing or acquiring 
 24.22  existing wetland credits from the 
 24.23  wetland bank established by the 
 24.24  commissioner.  Proceeds from the sale 
 24.25  of credits provided under this 
 24.26  paragraph are appropriated to the board 
 24.27  for the purposes of paragraph 
 24.28  (b).  Sales of credits provided under 
 24.29  this paragraph are not subject to 
 24.30  Minnesota Statutes, section 16A.695. 
 24.31     Sec. 41.  Laws 1994, chapter 643, section 26, subdivision 
 24.32  4, is amended to read: 
 24.33  Subd. 4.  Work Program
 24.34  The board of water and soil resources 
 24.35  must submit a work program and 
 24.36  semiannual progress reports in the form 
 24.37  determined by the legislative water 
 24.38  commission and request its 
 24.39  recommendation before spending any 
 24.40  money appropriated by subdivisions 4 2 
 24.41  and 5 3.  The commission's 
 24.42  recommendation is advisory only.  
 24.43  Failure to respond to a request within 
 24.44  60 days after receipt is a negative 
 24.45  recommendation.  Work programs 
 24.46  involving land acquisition must include 
 24.47  a land acquisition plan. 
 24.48     Sec. 42.  [REPEALER.] 
 24.49     Laws 1992, chapter 558, section 17, is repealed. 
 24.50     Sec. 43.  [EFFECTIVE DATE.] 
 24.51     This article is effective the day after its final enactment.
 24.52                             ARTICLE 2
 24.53     Section 1.  Minnesota Statutes 1994, section 446A.02, 
 24.54  subdivision 3, is amended to read: 
 24.55     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 24.56  commissioner of trade and economic development the pollution 
 25.1   control agency. 
 25.2      Sec. 2.  Minnesota Statutes 1994, section 446A.03, 
 25.3   subdivision 2, is amended to read: 
 25.4      Subd. 2.  [CHAIR; OTHER OFFICERS.] The commissioner of 
 25.5   trade and economic development the pollution control agency 
 25.6   shall serve as the chair and chief executive officer of the 
 25.7   authority.  The authority may elect other officers as necessary 
 25.8   from its members. 
 25.9      Sec. 3.  Minnesota Statutes 1994, section 446A.03, 
 25.10  subdivision 3a, is amended to read: 
 25.11     Subd. 3a.  [DELEGATION.] In addition to any powers to 
 25.12  delegate that members of the authority have as commissioners, 
 25.13  they may delegate to the commissioner of trade and economic 
 25.14  development the pollution control agency their responsibilities 
 25.15  as members of the authority for reviewing and approving 
 25.16  financing of eligible projects that have been certified to the 
 25.17  authority. 
 25.18     Sec. 4.  Minnesota Statutes 1994, section 446A.071, 
 25.19  subdivision 7, is amended to read: 
 25.20     Subd. 7.  [RULES.] The commissioner of trade and economic 
 25.21  development shall adopt rules establishing procedures for the 
 25.22  administration of the wastewater infrastructure funding program. 
 25.23  The rules must include: 
 25.24     (1) procedures for the administration of the financial 
 25.25  assistance program, including application procedures; 
 25.26     (2) provisions establishing eligible uses of funds, forms 
 25.27  of assistance, payments, and reporting requirements; and 
 25.28     (3) criteria for determining the amount of supplemental 
 25.29  assistance, which must include consideration of:  social, 
 25.30  economic, and demographic considerations; sewer service charges; 
 25.31  financial management; and the ability of significant wastewater 
 25.32  contributors to pay their fair share of the costs without 
 25.33  supplemental assistance. 
 25.34     Sec. 5.  Minnesota Statutes 1994, section 446A.081, 
 25.35  subdivision 11, is amended to read: 
 25.36     Subd. 11.  [RULES OF THE AUTHORITY.] The commissioner of 
 26.1   trade and economic development shall adopt rules containing the 
 26.2   procedures for the administration of the authority's duties as 
 26.3   provided by this section that include:  setting of interest 
 26.4   rates, which shall take into account the financial need of the 
 26.5   applicant; the amount of project financing to be provided; the 
 26.6   collateral required for public drinking water systems and for 
 26.7   privately owned public water systems; dedicated sources of 
 26.8   revenue or income streams to ensure repayment of loans; and the 
 26.9   requirements to ensure proper operation, maintenance, and repair 
 26.10  of the water systems financed by the authority.  
 26.11     Sec. 6.  Minnesota Statutes 1994, section 446A.081, 
 26.12  subdivision 12, is amended to read: 
 26.13     Subd. 12.  [RULES OF THE DEPARTMENT.] The department 
 26.14  commissioner of trade and economic development shall adopt rules 
 26.15  relating to the procedures for administration of 
 26.16  the department's department of trade and economic development's 
 26.17  duties under the act and this section.  The department and the 
 26.18  commissioner of the department of trade and economic development 
 26.19  may adopt a single set of rules for the program. 
 26.20     Sec. 7.  [TRANSFER.] 
 26.21     Responsibilities of the department of trade and economic 
 26.22  development related to the provision of administrative services 
 26.23  to the public facilities authority are transferred to the 
 26.24  pollution control agency under Minnesota Statutes, section 
 26.25  15.039. 
 26.26     Sec. 8.  [EFFECTIVE DATE.] 
 26.27     Sections 1 to 7 are effective July 1, 1995.