1.1                          A bill for an act 
  1.2             relating to capital improvements; providing standards 
  1.3             for state assistance to capital improvement projects 
  1.4             of political subdivisions; proposing coding for new 
  1.5             law in Minnesota Statutes, chapter 16A. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [16A.86] [CAPITAL PROJECT GRANTS TO POLITICAL 
  1.8   SUBDIVISIONS.] 
  1.9      Subdivision 1.  [PROJECTS COVERED.] The capital improvement 
  1.10  projects covered by this section are only those not covered by 
  1.11  another state program of assistance to political subdivisions. 
  1.12     Subd. 2.  [BUDGET REQUEST.] A political subdivision that 
  1.13  requests an appropriation of state general funds or state 
  1.14  general obligation bond proceeds for a local capital improvement 
  1.15  project is encouraged to submit the request to the commissioner 
  1.16  of finance by June 1 of an odd-numbered year to ensure its full 
  1.17  consideration.  The request must be submitted in the form and 
  1.18  with the supporting documentation required by the commissioner 
  1.19  of finance.  All requests timely received by the commissioner 
  1.20  must be forwarded to the legislature, along with agency 
  1.21  requests, by the deadline established in section 16A.11, 
  1.22  subdivision 1. 
  1.23     Subd. 3.  [EVALUATION.] (a) The commissioner shall evaluate 
  1.24  all requests from political subdivisions for state assistance 
  1.25  based on the following criteria: 
  2.1      (1) the political subdivision has provided for local, 
  2.2   private, and user financing for the project to the maximum 
  2.3   extent possible; 
  2.4      (2) the project helps fulfill an important state mission; 
  2.5      (3) the project is of regional or statewide significance; 
  2.6      (4) the project will not require new or any additional 
  2.7   state operating subsidies; 
  2.8      (5) the project will not expand the state's role in a new 
  2.9   policy area; 
  2.10     (6) state funding for the project will not create 
  2.11  significant inequities among local jurisdictions; 
  2.12     (7) the political subdivision has presented a credible plan 
  2.13  for how ongoing maintenance of the project will be funded over 
  2.14  its estimated life; 
  2.15     (8) the project will not compete with other facilities in 
  2.16  such a manner that they lose a significant number of users to 
  2.17  the new project; and 
  2.18     (9) the governing bodies of those political subdivisions 
  2.19  primarily benefiting from the project have passed resolutions in 
  2.20  support of the project.  
  2.21     (b) The commissioner's evaluation of each request, 
  2.22  including whether it meets each of the criteria in paragraph 
  2.23  (a), must be submitted to the legislature along with the 
  2.24  governor's recommendations under section 16A.11, subdivision 1, 
  2.25  whether or not the governor recommends that the request be 
  2.26  funded.  
  2.27     Subd. 4.  [FUNDING.] (a) If a project covered by this 
  2.28  section is funded, the amount of funding must be no more than 
  2.29  half the total cost of the project, including predesign, design, 
  2.30  construction, furnishings, and equipment. 
  2.31     (b) Notwithstanding paragraph (a), greater than 50 percent 
  2.32  funding of projects that are deemed needed as a result of a 
  2.33  disaster or to prevent a disaster, or that meet the criteria in 
  2.34  subdivision 3, paragraph (a), but are located in political 
  2.35  subdivisions with very low average net tax capacities is 
  2.36  permitted. 
  3.1      (c) Nothing in this section shall prevent the governor from 
  3.2   recommending, or the legislature from funding, projects which do 
  3.3   not meet the criteria in subdivision 3 or 4 when the governor or 
  3.4   the legislature determines that there is a compelling reason for 
  3.5   the recommendation or funding.