1.1 	A bill for an act
1.2 	relating to capital improvements; authorizing spending to acquire and better 
1.3 	public land and buildings and other improvements of a capital nature with 
1.4 	certain conditions; authorizing the sale of state bonds; appropriating money;
1.5 	amending Minnesota Statutes 2006, sections 16A.695, subdivisions 2, 3, by 
1.6 	adding subdivisions; 16A.86, subdivision 3; 116R.01, subdivision 6; 116R.02, 
1.7 	subdivisions 1, 2, 4, 5; 116R.03; 116R.05, subdivision 2; 116R.11, subdivision 1; 
1.8 	116R.12, by adding a subdivision; 272.01, subdivision 2; 290.06, subdivision 
1.9 	24; 297A.71, subdivision 10; 360.013, subdivision 39; 360.032, subdivision 1; 
1.10 	360.038, subdivision 4; Laws 2005, chapter 20, article 1, sections 7, subdivision 
1.11 	21; 20, subdivision 3; 23, subdivisions 8, 16; Laws 2006, chapter 258, sections 
1.12 	4, subdivision 4; 7, subdivision 11; 21, subdivisions 6, 15; repealing Minnesota 
1.13 	Statutes 2006, sections 116R.02, subdivisions 3, 6, 7, 9; 116R.16.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15	Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.
 	
1.16 	The sums shown in the column marked "appropriations" are appropriated to the 
1.17 	agencies and for the purposes specified in this act. The appropriations are from the 
1.18 	bond proceeds fund to the state agencies or officials indicated, to be spent for public 
1.19 	purposes. Appropriations of bond proceeds must be spent as authorized by the Minnesota 
1.20 	Constitution, article XI, section 5, paragraph (a), to acquire and better public land and 
1.21 	buildings and other public improvements of the capital nature, or as authorized by the 
1.22 	Minnesota Constitution, article XI, section 5, paragraphs (b) to (j). Unless otherwise 
1.23 	specified, the appropriations in this act are available until the project is completed or 
1.24 	abandoned subject to Minnesota Statutes, section 16A.642.

1.25	SUMMARY
	
1.26	University of Minnesota
	$
	36,400,000
	
1.27	Minnesota State Colleges and Universities
		34,520,000
	
1.28	Education
		30,300,000
	
2.1	Natural Resources
		10,127,000
	
2.2	Pollution Control Agency
		2,500,000
	
2.3	Board of Water and Soil Resources
		8,165,000
	
2.4	Zoological Garden
		1,526,000
	
2.5	Administration
		27,990,000
	
2.6	Public Safety
		2,500,000
	
2.7	Transportation
		34,923,000
	
2.8	Metropolitan Council
		39,300,000
	
2.9	Human Services
		150,000
	
2.10	Corrections
		6,117,000
	
2.11	Employment and Economic Development
		60,282,000
	
2.12	Bond Sale Expenses
		167,000
	
2.13	CANCELLATIONS
		(5,282,000)
	
2.14	TOTAL
	$
	255,000,000
	
2.15	Bond Proceeds Fund (General Fund Debt Service)
		140,282,000
	
2.16	Bond Proceeds Fund (User Financed Debt Service)
		1,265,000
	
2.17	Maximum Effort School Loan Fund
		30,000,000
	
2.18	Trunk Highway Bond Proceeds Account
		33,420,000
	
2.19	General Fund
		120,000,000
	
2.20	Bond Proceeds Cancellations
		5,282,000

2.21			APPROPRIATIONS

2.22	Sec. 2. UNIVERSITY OF MINNESOTA

2.23	Subdivision 1.Total Appropriation
 			$
	36,400,000
	
2.24 	To the Board of Regents of the University 
2.25 	of Minnesota for the purposes specified in 
2.26 	this section.

2.27
2.28	Subd. 2.Higher Education Asset Preservation 
and Replacement
 				22,000,000
	
2.29 	To be spent in accordance with Minnesota 
2.30 	Statutes, section 135A.046.

2.31	Subd. 3.717 Delaware
 				14,400,000
	
2.32 	To renovate the building at 717 Delaware 
2.33 	for use as a biomedical science research 
2.34 	facility. This appropriation is intended to 
2.35 	cover approximately 80 percent of the cost 
2.36 	of the project. The remaining costs must be 
2.37 	paid from university sources.

3.1
3.2	Sec. 3. MINNESOTA STATE COLLEGES 
AND UNIVERSITIES

3.3	Subdivision 1.Total Appropriation
 			$
	34,520,000
	
3.4 	To the Board of Trustees of the Minnesota 
3.5 	State Colleges and Universities for the 
3.6 	purposes specified in this section.

3.7
3.8	Subd. 2.Higher Education Asset Preservation 
And Replacement
 				30,720,000
	
3.9 	This appropriation is for the purposes 
3.10 	specified in Minnesota Statutes, section 
3.11 	135A.046. Of this, $720,000 is for HVAC 
3.12 	replacement and asbestos removal at 
3.13 	the Brooklyn Park campus of Hennepin 
3.14 	Technical College.

3.15	Subd. 3.Bemidji State University
 				2,000,000
	
3.16 	To acquire property adjacent to Bemidji State 
3.17 	University.

3.18
3.19	Subd. 4.Fond du Lac Tribal and Community 
College
 				1,800,000
	
3.20 	To purchase from willing sellers 
3.21 	approximately 3.9 acres in six residential 
3.22 	properties adjacent to the Fond du Lac Tribal 
3.23 	and Community College.

3.24	Subd. 5.Debt Service
 					
3.25 	(a) The board shall pay the debt service on 
3.26 	one-third of the principal amount of state 
3.27 	bonds sold to finance projects authorized by 
3.28 	this section, except for higher education asset 
3.29 	preservation and replacement, except that, 
3.30 	where a nonstate match is required, the debt 
3.31 	service is due on a principal amount equal 
3.32 	to one-third of the total project cost, less the 
3.33 	match committed before the bonds are sold. 
4.1 	After each sale of general obligation bonds, 
4.2 	the commissioner of finance shall notify the 
4.3 	board of the amounts assessed for each year 
4.4 	for the life of the bonds.
4.5 	(b) The commissioner shall reduce the 
4.6 	board's assessment each year by one-third of 
4.7 	the net income from investment of general 
4.8 	obligation bond proceeds in proportion to the 
4.9 	amount of principal and interest otherwise 
4.10 	required to be paid by the board. The board 
4.11 	shall pay its resulting net assessment to the 
4.12 	commissioner of finance by December 1 each 
4.13 	year. If the board fails to make a payment 
4.14 	when due, the commissioner of finance 
4.15 	shall reduce allotments for appropriations 
4.16 	from the general fund otherwise available 
4.17 	to the board and apply the amount of the 
4.18 	reduction to cover the missed debt service 
4.19 	payment. The commissioner of finance 
4.20 	shall credit the payments received from the 
4.21 	board to the bond debt service account in 
4.22 	the state bond fund each December 1 before 
4.23 	money is transferred from the general fund 
4.24 	under Minnesota Statutes, section 16A.641, 
4.25 	subdivision 10.

4.26	Subd. 6.Unspent Appropriations
 					
4.27 	(a) Upon substantial completion of a project 
4.28 	authorized in this section and after written 
4.29 	notice to the commissioner of finance, the 
4.30 	Board of Trustees must use any money 
4.31 	remaining in the appropriation for that 
4.32 	project for HEAPR under Minnesota 
4.33 	Statutes, section 135A.046. The Board 
4.34 	of Trustees must report by February 1 of 
4.35 	each even-numbered year to the chairs 
5.1 	of the house and senate committees with 
5.2 	jurisdiction over capital investments and 
5.3 	higher education finance, and to the chairs of 
5.4 	the house Ways and Means Committee and 
5.5 	the senate Finance Committee, on how the 
5.6 	remaining money has been allocated or spent.
5.7 	(b) The unspent portion of an appropriation 
5.8 	for a project in this section that is complete, 
5.9 	is available for higher education asset 
5.10 	preservation and replacement under this 
5.11 	subdivision, at the same campus as the 
5.12 	project for which the original appropriation 
5.13 	was made and the debt service requirement 
5.14 	under subdivision 5 is reduced accordingly. 
5.15 	Minnesota Statutes, section 16A.642, applies 
5.16 	from the date of the original appropriation to 
5.17 	the unspent amount transferred. 

5.18
5.19	Sec. 4. MINNESOTA DEPARTMENT OF 
EDUCATION

5.20	Subdivision 1.Total Appropriation
 			$
	30,300,000
	
5.21 	To the commissioner of education for the 
5.22 	purposes specified in this section.

5.23
5.24	Subd. 2.Independent School District No. 11, 
Anoka-Hennepin
 				300,000
	
5.25 	For a grant to Independent School District 
5.26 	No. 11, Anoka-Hennepin, to acquire land 
5.27 	adjacent to Riverview Elementary School 
5.28 	and for improvements of a capital nature 
5.29 	to develop and restore wetland and native 
5.30 	prairie habitat on the land.

5.31
5.32	Subd. 3.Independent School District No. 38, 
Red Lake
 				30,000,000
	
5.33 	This appropriation is from the maximum 
5.34 	effort school loan fund for a capital loan to 
5.35 	Independent School District No. 38, Red 
6.1 	Lake, as provided in Minnesota Statutes, 
6.2 	sections 126C.60 to 126C.72, to design, 
6.3 	construct, renovate, furnish, and equip 
6.4 	school facilities, and for health and safety 
6.5 	capital improvements at the Red Lake 
6.6 	School District. This appropriation is to 
6.7 	first complete the education spaces in the 
6.8 	high school-middle school. Unexpended 
6.9 	funds remaining after completion of the high 
6.10 	school-middle school may be used for the 
6.11 	Red Lake Elementary School project.

6.12	Sec. 5. NATURAL RESOURCES

6.13	Subdivision 1.Total Appropriation
 			$
	10,127,000
	
6.14 	To the commissioner of natural resources for 
6.15 	the purposes specified in this section.
6.16 	The appropriations in this section are subject 
6.17 	to the requirements of the natural resources 
6.18 	capital improvement program set forth in 
6.19 	new Minnesota Statutes, section 86A.12, 
6.20 	unless this section or the statutes referred 
6.21 	to in this section provide more specific 
6.22 	standards, criteria, or priorities for projects 
6.23 	than section 86A.12.

6.24	Subd. 2.Stillwater Flood Control Phase III
 				200,000
	
6.25 	This appropriation is from the general 
6.26 	fund for a grant under Minnesota Statutes, 
6.27 	section 103F.161, to the city of Stillwater to 
6.28 	predesign, design, and begin construction 
6.29 	of Phase III of the Stillwater flood control 
6.30 	project, including flood control structures 
6.31 	and pumping stations. This appropriation 
6.32 	is not available until the commissioner has 
6.33 	determined that at least $2,000,000 has been 
6.34 	committed from nonstate sources.

7.1	Subd. 3.Canisteo Mine
 				2,500,000
	
7.2 	For a grant to the Western Mesabi Mine 
7.3 	Planning Board to construct siphons, a 
7.4 	conveyance system, and other improvements 
7.5 	to accommodate water level and outflow 
7.6 	control of the water level in the Canisteo 
7.7 	mine pit in Itasca County. This appropriation 
7.8 	does not require a local match. The 
7.9 	commissioner of natural resources shall be 
7.10 	responsible to maintain the improvements 
7.11 	after completion of the project.

7.12	Subd. 4.Springbrook Nature Center
 				2,000,000
	
7.13 	For a grant to the city of Fridley to 
7.14 	predesign, design, redevelop, and expand the 
7.15 	Springbrook Nature Center.

7.16	Subd. 5.Big Bog State Recreation Area
 				1,000,000
	
7.17 	To upgrade the contact station, make 
7.18 	improvements in the recreation area, and 
7.19 	forest restoration and interpretation at the 
7.20 	Big Bog State Recreation Area.

7.21	Subd. 6.Fort Snelling Upper Bluff
 				500,000
	
7.22 	This appropriation is from the general fund 
7.23 	for a grant to Hennepin County to conduct 
7.24 	emergency building stabilization at Fort 
7.25 	Snelling Upper Bluff. This appropriation 
7.26 	is not available until the commissioner of 
7.27 	finance has determined that Hennepin County 
7.28 	has entered into appropriate agreements to 
7.29 	use Sentence to Serve labor for the project 
7.30 	that will train Sentence to Serve laborers in 
7.31 	the skills needed for the work.

7.32
7.33	Subd. 7.Red River Basin Digital Elevation 
Model
 				600,000
	
8.1 	This appropriation is from the general fund 
8.2 	to develop and implement a high resolution 
8.3 	digital elevation model for the Red River 
8.4 	basin.

8.5	Subd. 8.Flood Hazard Mitigation Grant
 				2,093,000
	
8.6 	For flood hazard mitigation grants under 
8.7 	Minnesota Statutes, section 103F.161, for:
8.8 	(a) the city of Roseau, for the state share of 
8.9 	land acquisition, engineering, design, and 
8.10 	construction costs for the U.S. Army Corps 
8.11 	of Engineers Flood Control Project, which 
8.12 	will protect the city of Roseau from recurring 
8.13 	flooding; and
8.14 	(b) flood hazard mitigation projects in 
8.15 	Browns Valley.
8.16 	To the extent that the cost of the project 
8.17 	in Roseau and Browns Valley exceeds two 
8.18 	percent of the median household income in 
8.19 	the municipality multiplied by the number 
8.20 	of households in the municipality, this 
8.21 	appropriation is also for the local share of the 
8.22 	project.

8.23
8.24	Subd. 9.Cuyuna Country State Recreation 
Area
 				125,000
	
8.25 	This appropriation is from the general fund 
8.26 	to develop a natural surface multiuse trail in 
8.27 	the Cuyuna Country State Recreation Area.

8.28	Subd. 10.Gateway Trail Tunnel
 				650,000
	
8.29 	This appropriation is from the general fund to 
8.30 	replace an at-grade crossing of the Gateway 
8.31 	Trail at Highway 120 with a tunnel.

8.32	Subd. 11.Luce Line Trail
 				209,000
	
8.33 	This appropriation is from the general fund to 
8.34 	acquire land for, develop, and rehabilitate the 
9.1 	Luce Line Trail, under Minnesota Statutes, 
9.2 	section 85.015.

9.3	Subd. 12.Browns Creek Nature Preserve
 				250,000
	
9.4 	This appropriation is from the general fund 
9.5 	for acquisition of the Browns Creek segment 
9.6 	of the Willard Munger Trail System.

9.7	Sec. 6. POLLUTION CONTROL AGENCY
 			$
	2,500,000
	
9.8 	This appropriation is from the general fund 
9.9 	to the Pollution Control Agency for a grant 
9.10 	to the city of Albert Lea for construction 
9.11 	costs of remedial systems at the Albert 
9.12 	Lea landfill. This includes relocating and 
9.13 	incorporating waste from the former Albert 
9.14 	Lea dump owned by the city of Albert Lea 
9.15 	pursuant to Minnesota Statutes, section 
9.16 	115B.403, which action may be taken by the 
9.17 	Pollution Control Agency notwithstanding 
9.18 	the provisions of Minnesota Statutes, section 
9.19 	115B.403, paragraphs (a) and (b).
9.20 	The appropriation in this section is added to 
9.21 	the amounts for the city of Albert Lea landfill 
9.22 	funding in Laws 2006, chapter 258, section 
9.23 	8, subdivision 2.

9.24
9.25	Sec. 7. BOARD OF WATER AND SOIL 
RESOURCES

9.26	Subdivision 1.Total Appropriation
 			$
	8,165,000
	
9.27 	To the Board of Water and Soil Resources 
9.28 	for the purposes specified in this section.

9.29	Subd. 2.RIM Conservation Reserve
 				8,000,000
	
9.30 	This appropriation is from the general fund 
9.31 	to acquire conservation easements from 
9.32 	landowners on marginal lands to protect soil 
9.33 	and water quality and to support fish and 
10.1 	wildlife habitat as provided in Minnesota 
10.2 	Statutes, sections 103F.501 to 103F.535. 
10.3 	Of this, $1,200,000 is to implement the 
10.4 	program. The board must submit to the 
10.5 	legislative committees with jurisdiction over 
10.6 	environment finance and capital investment 
10.7 	an interim report on this program by October 
10.8 	1, 2007, and a final report by February 1, 
10.9 	2008.

10.10
10.11	Subd. 3.Lake Titlow Watershed 
Improvements
 				165,000
	
10.12 	For a grant to the city of Gaylord to predesign 
10.13 	and design holding ponds upstream from 
10.14 	Lake Titlow. The design must include the 
10.15 	best location for the ponds, an estimate of 
10.16 	the cost of land acquisition or easements, 
10.17 	construction costs of the holding ponds, and 
10.18 	the estimated expense of maintaining the 
10.19 	structures and who will be responsible for 
10.20 	the expense. The city must also coordinate 
10.21 	with state and county conservation officials 
10.22 	to ensure correct conservation practices and 
10.23 	improvements in the watershed district. 
10.24 	Of this, $15,000 is from the general fund to 
10.25 	purchase open intake tile covers or cones that 
10.26 	limit soil erosion and chemicals from entering 
10.27 	the water ditch systems and waterways of 
10.28 	the Lake Titlow watershed. These water 
10.29 	control devices must be provided at low 
10.30 	cost to landowners to promote conservation 
10.31 	improvement and clean up groundwater. 
10.32 	Volunteers from the city of Gaylord and local 
10.33 	clubs and high school students must be used 
10.34 	to install the water control devices at no cost 
10.35 	to the landowner.
11.1 	The criteria, limitations, and assessment 
11.2 	requirements in Minnesota Statutes, sections 
11.3 	103D.701, 103D.705, and 103D.901 do not 
11.4 	apply to this subdivision.

11.5
11.6	Sec. 8. MINNESOTA ZOOLOGICAL 
GARDEN
 			$
	1,526,000

11.7	Inflow and Infiltration Emergency Abatement
					
11.8 	This appropriation is from the general fund 
11.9 	to the Minnesota Zoological Garden for 
11.10 	design and construction of improvements to 
11.11 	its water management system. The project 
11.12 	must be designed to address inflow and 
11.13 	infiltration problems associated with the 
11.14 	Minnesota Zoo's water discharge flow to the 
11.15 	city of Eagan.

11.16	Sec. 9. ADMINISTRATION

11.17	Subdivision 1.Total Appropriation
 			$
	27,990,000
	
11.18 	To the commissioner of administration for 
11.19 	the purposes specified in this section.

11.20
11.21	Subd. 2.Exterior Repair of Transportation 
Building
 				12,715,000
	
11.22 	This appropriation is from the bond proceeds 
11.23 	account in the trunk highway fund to repair 
11.24 	and renovate the exterior of the Department 
11.25 	of Transportation Building at 395 John 
11.26 	Ireland Boulevard in St. Paul.

11.27	Subd. 3.Property Acquisition
 				2,325,000
	
11.28 	This appropriation is from the general fund 
11.29 	to acquire property at 639 Jackson Street in 
11.30 	St. Paul adjacent to the Harold E. Stassen 
11.31 	Building, to demolish existing structures 
11.32 	on the property, and to develop temporary 
11.33 	parking on the site and adjacent areas.

12.1	Subd. 4.Veterans Memorial, Eden Prairie
 				200,000
	
12.2 	This appropriation is from the general fund 
12.3 	for a grant to the city of Eden Prairie to 
12.4 	design and construct improvements of a 
12.5 	capital nature for a veterans memorial in 
12.6 	Purgatory Creek Recreation Area in the city 
12.7 	of Eden Prairie.

12.8	Subd. 5.Noncommercial Television
 				9,750,000
	
12.9 	This appropriation is from the general fund 
12.10 	for the biennium ending June 30, 2009, for 
12.11 	grants to noncommercial television stations 
12.12 	to assist with the continued conversion to a 
12.13 	digital broadcast signal as mandated by the 
12.14 	federal government. This appropriation must 
12.15 	be used to assist each station to complete its 
12.16 	digital production facilities and interconnect 
12.17 	with other Minnesota public television 
12.18 	stations. In order to qualify for these grants, 
12.19 	a station must meet the criteria established 
12.20 	for grants in Minnesota Statutes, section 
12.21 	129D.12, subdivision 2.

12.22	Subd. 6.Minnesota Public Radio
 				3,000,000
	
12.23 	This appropriation is from the general fund 
12.24 	for the fiscal year beginning July 1, 2007, for 
12.25 	grants to Minnesota Public Radio to assist 
12.26 	with conversion to a digital broadcast signal.

12.27	Sec. 10. PUBLIC SAFETY
 			$
	2,500,000
	
12.28 	This appropriation is from the general fund 
12.29 	to the commissioner of public safety for a 
12.30 	grant to Anoka County to construct, furnish, 
12.31 	and equip a regional forensic laboratory at 
12.32 	Anoka County's public safety facility.

12.33	Sec. 11. TRANSPORTATION

13.1	Subdivision 1.Total Appropriation
 			$
	34,923,000
	
13.2 	To the commissioner of transportation for the 
13.3 	purposes specified in this section.

13.4
13.5	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				10,000,000
	
13.6 	This appropriation is from the general fund 
13.7 	for the state transportation fund provided in 
13.8 	Minnesota Statutes, section 174.50, to match 
13.9 	federal money and to replace or rehabilitate 
13.10 	local deficient bridges.
13.11 	Political subdivisions may use grants made 
13.12 	under this section to construct or reconstruct 
13.13 	bridges, including:
13.14 	(1) matching federal aid grants to construct 
13.15 	or reconstruct key bridges;
13.16 	(2) paying the costs of preliminary 
13.17 	engineering and environmental studies 
13.18 	authorized under Minnesota Statutes, section 
13.19 	174.50, subdivision 6a;
13.20 	(3) paying the costs to abandon an existing 
13.21 	bridge that is deficient and in need of 
13.22 	replacement, but where no replacement will 
13.23 	be made; and
13.24 	(4) paying the costs to construct a road 
13.25 	or street to facilitate the abandonment 
13.26 	of an existing bridge determined by 
13.27 	the commissioner to be deficient, if the 
13.28 	commissioner determines that construction 
13.29 	of the road or street is more cost efficient 
13.30 	than the replacement of the existing bridge.

13.31	Subd. 3.Port Development Assistance
 				1,500,000
	
13.32 	$1,001,000 of this appropriation is from the 
13.33 	general fund for grants under Minnesota 
14.1 	Statutes, chapter 457A. Any improvements 
14.2 	made with the proceeds of these grants must 
14.3 	be publicly owned.

14.4	Subd. 4.Mankato District Headquarters
 				20,673,000
	
14.5 	This appropriation is from the bond proceeds 
14.6 	account in the trunk highway fund to 
14.7 	design, construct, furnish, and equip a 
14.8 	new Department of Transportation district 
14.9 	headquarters facility in Mankato.

14.10	Subd. 5.High-Speed Rail Line
 				2,000,000
	
14.11 	For the state's share of a high-speed rail 
14.12 	line between St. Paul and Chicago. No 
14.13 	part of this appropriation may be spent to 
14.14 	acquire or better capital improvements that 
14.15 	are located outside the state of Minnesota, 
14.16 	that may be used from time to time outside 
14.17 	the state of Minnesota, or that are part of 
14.18 	a rail corridor that is not designated by the 
14.19 	Midwest Interstate Passenger Rail Compact.

14.20	Subd. 6.Commuter Rail Extension
 				250,000
	
14.21 	For a grant to the Northstar Corridor 
14.22 	Development Authority to fund advanced 
14.23 	preliminary engineering, updated 
14.24 	environmental documentation, property 
14.25 	appraisals, and negotiations with the railroad 
14.26 	to extend commuter rail service on the 
14.27 	Burlington Northern Santa Fe rail line 
14.28 	between Big Lake and Rice.

14.29
14.30	Subd. 7.North Shore Express Intercity Rail 
Initiative
 				500,000
	
14.31 	For a grant to St. Louis and Lake 
14.32 	County Regional Rail Authority for 
14.33 	railroad acquisition and track restoration, 
14.34 	environmental impact studies, advanced 
15.1 	corridor planning, preliminary design and 
15.2 	preliminary engineering, station design, 
15.3 	analysis of railroad capacity, and easement 
15.4 	costs for intercity and passenger rail service 
15.5 	between the city of Duluth and the cities of 
15.6 	Minneapolis and St. Paul.

15.7	Sec. 12. METROPOLITAN COUNCIL

15.8	Subdivision 1.Total Appropriation
 			$
	39,300,000
	
15.9 	To the Metropolitan Council for the purposes 
15.10 	specified in this section.

15.11	Subd. 2.Central Corridor Transit Way
 				30,000,000
	
15.12 	For preliminary engineering, preliminary 
15.13 	design, final design, and construction of 
15.14 	the central corridor transit way between 
15.15 	downtown Minneapolis and downtown St. 
15.16 	Paul, terminating in downtown St. Paul at 
15.17 	the Union Depot.
15.18 	This appropriation may not be spent for 
15.19 	capital improvements within a trunk highway 
15.20 	right-of-way.

15.21	Subd. 3.Union Depot
 				3,000,000
	
15.22 	For a grant to the Ramsey County Regional 
15.23 	Railroad Authority to acquire land and 
15.24 	structures, to renovate structures, and for 
15.25 	design, engineering, and environmental 
15.26 	work to revitalize Union Depot for use as a 
15.27 	multimodal transit center in St. Paul.

15.28	Subd. 4.Rush Line
 				500,000
	
15.29 	For a grant to the Ramsey County Regional 
15.30 	Railroad Authority to acquire land for, 
15.31 	design, and construct park-and-ride or 
15.32 	park-and-pool lots located along the Rush 
15.33 	Line Corridor along I-35E/I-35W and 
16.1 	Highway 61 from the Union Depot in 
16.2 	downtown St. Paul to Hinckley.

16.3	Subd. 5.Red Rock Corridor Transit Way
 				500,000
	
16.4 	To design, construct, and furnish 
16.5 	park-and-ride lots for the Red Rock 
16.6 	Corridor transit way between Hastings and 
16.7 	Minneapolis via St. Paul, and any extension 
16.8 	between Hastings and Red Wing.

16.9	Subd. 6.Southwest Transit Way Corridor
 				500,000
	
16.10 	For a grant to the Hennepin County 
16.11 	Regional Rail Authority to prepare a draft 
16.12 	environmental impact statement (DEIS) 
16.13 	and for preliminary engineering for the 
16.14 	Southwest Transit Way Corridor, from the 
16.15 	Hiawatha light rail in downtown Minneapolis 
16.16 	to the vicinity of the Southwest Station 
16.17 	transit hub in Eden Prairie.

16.18	Subd. 7.I-494 Transit Options Study
 				500,000
	
16.19 	This appropriation is from the general fund 
16.20 	for a feasibility study, environmental studies, 
16.21 	and preliminary engineering of transit options 
16.22 	for an Interstate 494 corridor transit way, 
16.23 	along a corridor on or near marked Interstate 
16.24 	Highway 494, from Minneapolis-St. Paul 
16.25 	International Airport to a transit station on 
16.26 	the proposed southwest transit way, and other 
16.27 	transit corridors in the metropolitan area.

16.28	Subd. 8.I-94 Transit Way
 				500,000
	
16.29 	For a grant to Washington County for 
16.30 	predesign and preliminary engineering of 
16.31 	transportation and transit improvements, 
16.32 	including busways or rail transit in the 
16.33 	marked Interstate Highway 94 Corridor 
16.34 	between the Union Depot Concourse 
17.1 	Multimodal Transit Hub, located in 
17.2 	downtown St. Paul in the area south of 
17.3 	Kellogg Boulevard and east of Jackson Street, 
17.4 	extending eastward through Washington 
17.5 	County to the Minnesota-Wisconsin border, 
17.6 	to terminate in St. Croix County, Wisconsin. 
17.7 	No part of this appropriation may be spent to 
17.8 	acquire or better capital improvements that 
17.9 	are located outside the state of Minnesota.

17.10
17.11	Subd. 9.Metropolitan Regional Parks Capital 
Improvements
 				3,800,000
	
17.12 	This appropriation is from the general fund 
17.13 	for a grant to the city of St. Paul to construct, 
17.14 	furnish, and equip river park development 
17.15 	and redevelopment infrastructure in National 
17.16 	Great River Park along the Mississippi River 
17.17 	in St. Paul. 

17.18	Sec. 13. HUMAN SERVICES
 			$
	150,000
	
17.19 	This appropriation is from the general fund 
17.20 	to the commissioner of administration to 
17.21 	predesign a multicounty regional secured 
17.22 	treatment facility in west central Minnesota. 
17.23 	The commissioner of human services 
17.24 	shall prepare a report to the legislature 
17.25 	assessing the need for and the viability of 
17.26 	the facility and the benefits derived from a 
17.27 	coordinated multicounty, regional approach 
17.28 	to local chemical dependency needs in west 
17.29 	central Minnesota. The report is due to the 
17.30 	legislature by February 1, 2008.

17.31	Sec. 14. CORRECTIONS

17.32	Subdivision 1.Total Appropriation
 			$
	6,117,000
	
17.33 	To the commissioner of administration for 
17.34 	the purposes specified in this section.

18.1
18.2	Subd. 2.Minnesota Correctional Facility - Oak 
Park Heights

18.3	(a) Perimeter System Renovation
				3,875,000
	
18.4 	This appropriation is from the general fund to 
18.5 	renovate the perimeter system at the Oak Park 
18.6 	Heights Correctional Facility by replacing 
18.7 	the security fence system for the inside wall 
18.8 	of the main prison yard and exterior fence, 
18.9 	replacing the perimeter lighting system and 
18.10 	the security razor ribbon, and installing 
18.11 	cameras and lighting to correspond to the 
18.12 	perimeter system's added security zones.

18.13	(b) Ventilation System Renovation
				2,242,000
	
18.14 	This appropriation is from the general fund 
18.15 	to renovate the ventilation system at the 
18.16 	Oak Park Heights Correctional Facility by 
18.17 	demolishing sections of existing ductwork, 
18.18 	installing new ductwork, installing an 
18.19 	ultraviolet lighting system, installing system 
18.20 	air controls and electronics, and cleaning 
18.21 	or otherwise renovating sections of existing 
18.22 	ductwork.

18.23
18.24	Sec. 15. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

18.25	Subdivision 1.Total Appropriation
 			$
	60,282,000
	
18.26 	To the commissioner of employment and 
18.27 	economic development or other named 
18.28 	agency for the purposes specified in this 
18.29 	section.

18.30	Subd. 2.DECC Arena
 				30,000,000
	
18.31 	This appropriation is from the general fund 
18.32 	for a grant to the Duluth Entertainment 
18.33 	and Convention Center Authority to 
18.34 	design, construct, furnish, and equip capital 
19.1 	improvements and renovations to the Duluth 
19.2 	Entertainment and Convention Center. The 
19.3 	capital improvements and renovations must 
19.4 	include an approximately 217,446 square 
19.5 	foot arena with an ice sheet of at least 200 
19.6 	feet by 85 feet; trade show and concert space; 
19.7 	seating capacity of at least 6,630 with suites, 
19.8 	club seats, and concessions; state-of-the-art 
19.9 	locker and training facilities; and accessible 
19.10 	and expanded media space. Notwithstanding 
19.11 	any law to the contrary, the authority may 
19.12 	adopt a design and construction procurement 
19.13 	process as determined by the authority, in 
19.14 	its discretion, to be in the public interest in 
19.15 	connection with the Duluth Entertainment 
19.16 	and Convention Center improvements.

19.17	Subd. 3.Itasca County Infrastructure
 				20,000,000
	
19.18 	For a grant to Itasca County for public 
19.19 	infrastructure needed to support a steel plant 
19.20 	in Itasca County. Grant money may be used 
19.21 	by Itasca County to acquire rights-of-way 
19.22 	and mitigate loss of wetlands and runoff of 
19.23 	storm water, to predesign, design, construct, 
19.24 	and equip roads and rail lines, and, in 
19.25 	cooperation with municipal public utilities, 
19.26 	to predesign, design, construct, and equip 
19.27 	natural gas pipelines, electric infrastructure, 
19.28 	water supply systems, and wastewater 
19.29 	collection and treatment systems.

19.30	Subd. 4.Mayo Civic Center Complex
 				2,500,000
	
19.31 	For a grant to the city of Rochester to design 
19.32 	the renovation and expansion of the Mayo 
19.33 	Civic Center Complex.

19.34	Subd. 5.Wildlife Rehabilitation Center
 				500,000
	
20.1 	This appropriation is from the general fund 
20.2 	for a grant to the Wildlife Rehabilitation 
20.3 	Center of Minnesota to retire loans incurred 
20.4 	by the center for construction of its facility in 
20.5 	the city of Roseville, and for completion of 
20.6 	educational technology infrastructure at the 
20.7 	center.

20.8	Subd. 6.Rice Street Bridge
 				2,000,000
	
20.9 	For a grant to Ramsey County for 
20.10 	the preliminary planning, design, and 
20.11 	engineering of the Rice Street bridge where 
20.12 	it crosses marked Trunk Highway 36 in 
20.13 	Ramsey County.

20.14	Sec. 16. BOND SALE EXPENSES
 			$
	167,000
	
20.15 	To the commissioner of finance for bond sale 
20.16 	expenses under Minnesota Statutes, section 
20.17 	16A.641, subdivision 8.

20.18	Sec. 17. BOND SALE SCHEDULE
 					
20.19 	The commissioner of finance shall schedule 
20.20 	the sale of state general obligation bonds so 
20.21 	that, during the biennium ending June 30, 
20.22 	2009, no more than $918,620,000 will need 
20.23 	to be transferred from the general fund to the 
20.24 	state bond fund to pay principal and interest 
20.25 	due and to become due on outstanding 
20.26 	state general obligation bonds. During 
20.27 	the biennium, before each sale of state 
20.28 	general obligation bonds, the commissioner 
20.29 	of finance shall calculate the amount of 
20.30 	debt service payments needed on bonds 
20.31 	previously issued and shall estimate the 
20.32 	amount of debt service payments that will 
20.33 	be needed on the bonds scheduled to be 
21.1 	sold. The commissioner shall adjust the 
21.2 	amount of bonds scheduled to be sold so as 
21.3 	to remain within the limit set by this section. 
21.4 	The amount needed to make the debt service 
21.5 	payments is appropriated from the general 
21.6 	fund as provided in Minnesota Statutes, 
21.7 	section 16A.641.

21.8 	Sec. 18. BOND SALE AUTHORIZATION.
 21.9 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act 
21.10 	from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the 
21.11 	state in an amount up to $110,282,000 in the manner, upon the terms, and with the effect 
21.12 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
21.13 	Constitution, article XI, sections 4 to 7.
21.14 		Subd. 2.Maximum effort school loan fund. To provide the money appropriated in 
21.15 	this act from the maximum effort school loan fund, the commissioner of finance shall sell 
21.16 	and issue bonds of the state in an amount up to $30,000,000 in the manner, upon the terms, 
21.17 	and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by 
21.18 	the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except 
21.19 	accrued interest and any premium received on the sale of the bonds, must be credited to a 
21.20 	bond proceeds account in the maximum effort school loan fund.
21.21 		Subd. 3.Trunk highway bonds. To provide the money appropriated in this act 
21.22 	from the bond proceeds account in the trunk highway fund, the commissioner of finance 
21.23 	shall sell and issue trunk highway bonds in an amount up to $33,420,000 in the manner, on 
21.24 	the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, 
21.25 	and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts 
21.26 	requested by the commissioner of transportation. The proceeds of the bonds, except 
21.27 	accrued interest and any premium received on the sale of the bonds, must be credited to 
21.28 	the bond proceeds account in the trunk highway fund.

21.29 	Sec. 19. BOND SALE AUTHORIZATION REDUCTIONS.
 21.30 	The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, 
21.31 	subdivision 1, is reduced by $2,000,000.
21.32 	The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is 
21.33 	reduced by $3,282,000.

22.1 	Sec. 20. Minnesota Statutes 2006, section 16A.695, subdivision 2, is amended to read:
22.2 		Subd. 2.Leases and management contracts. (a) A public officer or agency that is 
22.3 	authorized by law to lease or enter into a management contract with respect to state bond 
22.4 	financed property shall comply with this subdivision.
22.5 	(b) The lease or management contract may be entered into for the express purpose of 
22.6 	carrying out a governmental program established or authorized by law and established by 
22.7 	official action of the contracting public officer or agency, in accordance with orders of the 
22.8 	commissioner intended to ensure the legality and tax-exempt status of bonds issued to 
22.9 	finance the property, and with the approval of the commissioner. A lease or management 
22.10 	contract, including any renewals that are solely at the option of the lessee, must be for a 
22.11 	term substantially less than the useful life of the property, but may allow renewal beyond 
22.12 	that term upon a determination by the lessee provided that the lessee demonstrates to the 
22.13 	lessor that the use continues to carry out the governmental program. In the event that the 
22.14 	lessor and lessee do not renew the lease or management contract and if the lessee has 
22.15 	contributed to the land and the capital improvements on the state bond financed property, 
22.16 	the lessor may agree to reimburse the lessee for its investment in the land and capital 
22.17 	improvements by purchasing the lessee's interest in the property or otherwise, which 
22.18 	amount may be paid, at the option of the lessor and lessee, at the time of nonrenewal 
22.19 	without a requirement of a prior escrow for funds or at such later date and additional 
22.20 	terms as are agreed to by the lessor and the lessee. A lease or management contract must 
22.21 	be terminable by the contracting public officer or agency if the other contracting party 
22.22 	defaults under the contract or if the governmental program is terminated or changed, and 
22.23 	must provide for program oversight by the contracting public officer or agency. Money 
22.24 	received by the public officer or agency under the lease or management contract that is 
22.25 	not needed to pay and not authorized to be used to pay operating costs of the property, 
22.26 	or to pay the principal, interest, redemption premiums, and other expenses when due on 
22.27 	debt related to the property other than state bonds, must be:
22.28 	(1) paid to the commissioner in the same proportion as the state bond financing is 
22.29 	to the total public debt financing for the property, excluding debt issued by a unit of 
22.30 	government for which it has no financial liability;
22.31 	(2) deposited in the state bond fund; and
22.32 	(3) used to pay or redeem or defease bonds issued to finance the property in 
22.33 	accordance with the commissioner's order authorizing their issuance.
22.34 	The money paid to the commissioner is appropriated for this purpose.
22.35 	(c) With the approval of the commissioner, a lease or management contract between 
22.36 	a city and a nonprofit corporation under section 471.191, subdivision 1, need not require 
23.1 	the lessee to pay rentals sufficient to pay the principal, interest, redemption premiums, 
23.2 	and other expenses when due with respect to state bonds issued to acquire and better 
23.3 	the facilities. 

23.4 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2006, 
23.5 	and applies to lease or management agreements entered into on or after that date.

23.6 	Sec. 21. Minnesota Statutes 2006, section 16A.695, subdivision 3, is amended to read:
23.7 		Subd. 3.Sale of property. A public officer or agency shall not sell any state bond 
23.8 	financed property unless the public officer or agency determines by official action that 
23.9 	the property is no longer usable or needed by the public officer or agency to carry out 
23.10 	the governmental program for which it was acquired or constructed, the sale is made as 
23.11 	authorized by law, the sale is made for fair market value, and the sale is approved by the 
23.12 	commissioner. If any state bonds issued to purchase or better the state bond financed 
23.13 	property that is sold remain outstanding on the date of sale, the net proceeds of sale must 
23.14 	be applied as follows:
23.15 	(1) if the state bond financed property was acquired and bettered solely with state 
23.16 	bond proceeds, the net proceeds of sale must be paid to the commissioner, deposited in 
23.17 	the state bond fund, and used to pay or redeem or defease the outstanding state bonds in 
23.18 	accordance with the commissioner's order authorizing their issuance, and the proceeds are 
23.19 	appropriated for this purpose; or
23.20 	(2) if the state bond financed property was acquired or bettered partly with state 
23.21 	bond proceeds and partly with other money, the net proceeds of sale must be used: first, to 
23.22 	pay to the state the amount of state bond proceeds used to acquire or better the property; 
23.23 	second, to pay in full any outstanding public or private debt incurred to acquire or better 
23.24 	the property; and third, to pay interested public and private entities, other than any 
23.25 	private lender already paid in full, the amount of money contributed to the acquisition 
23.26 	or betterment of the property; and fourth, any excess over the amount needed for those 
23.27 	purposes must be divided in proportion to the shares contributed to the acquisition or 
23.28 	betterment of the property and paid to the interested public and private entities, other than 
23.29 	any private lender already paid in full, and the proceeds are appropriated for this purpose. 
23.30 	In calculating the share contributed by each entity, the amount to be attributed to the owner 
23.31 	of the property shall be the fair market value of the property that was bettered by state 
23.32 	bond proceeds at the time the betterment began.
23.33 	When all of the net proceeds of sale have been applied as provided in this 
23.34 	subdivision, this section no longer applies to the property.

24.1 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2006, 
24.2 	and applies to lease or management agreements entered into on or after that date.

24.3 	Sec. 22. Minnesota Statutes 2006, section 16A.695, is amended by adding a 
24.4 	subdivision to read:
24.5 		Subd. 6.Match requirements. Recipients of grants from money appropriated 
24.6 	from the bond proceeds fund may be required to demonstrate a commitment of funds 
24.7 	from nonstate sources. These matching funds may be pledged payments that have been 
24.8 	deposited into a segregated account and/or multiyear pledges that are converted into 
24.9 	cash or cash equivalent through a loan or irrevocable letter of credit from a financial 
24.10 	institution. The loan or irrevocable letter of credit may be secured by a lien on the state 
24.11 	bond financed property.

24.12 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2006, 
24.13 	and applies to lease or management agreements entered into on or after that date.

24.14 	Sec. 23. Minnesota Statutes 2006, section 16A.695, is amended by adding a 
24.15 	subdivision to read:
24.16 		Subd. 7.Leased state bond financed property. A public officer or agency may 
24.17 	lease real property and improvements which are to be acquired or improved with state 
24.18 	bond proceeds. The lease shall be for a term equal to or longer than the useful life of the 
24.19 	property. The expiration of the lease upon the end of its term shall not require that the 
24.20 	state be repaid or that the property be sold and upon such expiration the real property and 
24.21 	improvements shall no longer be state bond financed property.

24.22 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2006, 
24.23 	and applies to lease or management agreements entered into on or after that date.

24.24 	Sec. 24. Minnesota Statutes 2006, section 16A.86, subdivision 3, is amended to read:
24.25 		Subd. 3.Evaluation. (a) The commissioner shall evaluate all requests from political 
24.26 	subdivisions for state assistance based on the following criteria:
24.27 	(1) the political subdivision has provided for local, private, and user financing for 
24.28 	the project to the maximum extent possible;
24.29 	(2) the project helps fulfill an important state mission;
24.30 	(3) the project is of regional or statewide significance;
24.31 	(4) the project will not require new or any additional state operating subsidies meet 
24.32 	or exceed sustainable building guidelines established under section 16B.325;
25.1 	(5) the project will not expand the state's role in a new policy area use sustainable 
25.2 	building designs to the extent possible;
25.3 	(6) state funding for the project will not create significant inequities among local 
25.4 	jurisdictions;
25.5 	(7) the project will not compete with other facilities in such a manner that they lose a 
25.6 	significant number of users to the new project;
25.7 	(8) the governing bodies of those political subdivisions primarily benefiting from the 
25.8 	project have passed resolutions in support of the project and have established priorities 
25.9 	for all projects within their jurisdictions for which bonding appropriations are requested 
25.10 	when submitting multiple requests; and
25.11 	(9) if a predesign that meets the requirements of section 16B.335 has been completed 
25.12 	and is available at the time the project request is submitted to the commissioner of finance, 
25.13 	the applicant has submitted the project predesign to the commissioner of administration. 
25.14 	(b) The commissioner's evaluation of each request, including whether it meets 
25.15 	each of the criteria in paragraph (a), must be submitted to the legislature along with the 
25.16 	governor's recommendations under section 16A.11, subdivision 1, whether or not the 
25.17 	governor recommends that the request be funded. 

25.18 	Sec. 25. Minnesota Statutes 2006, section 116R.01, subdivision 6, is amended to read:
25.19 		Subd. 6.Project. "Project" means the facilities or any property described in section 
25.20 	116R.02, subdivision 5or 6, as applicable. 

25.21 	Sec. 26. Minnesota Statutes 2006, section 116R.02, subdivision 1, is amended to read:
25.22 		Subdivision 1.Sale authorization. The commissioner of finance, upon the request 
25.23 	of the governor, may issue and sell revenue bonds as provided under sections 116R.01 to 
25.24 	116R.16116R.15 in one or more series or issues for the purposes provided in this section 
25.25 	in the aggregate principal amount of up to $350,000,000, except for refunding bonds. 
25.26 	Proceeds of the bonds and investment income on the proceeds are appropriated in the 
25.27 	amounts and for the purposes specified in subdivisions 2,and 5, and 6 and section 116R.04. 

25.28 	Sec. 27. Minnesota Statutes 2006, section 116R.02, subdivision 2, is amended to read:
25.29 		Subd. 2.Loan, lease, and revenue agreements. (a) The commissioner may loan 
25.30 	the proceeds of the bonds, make other loans or enter into lease agreements or other 
25.31 	revenue agreements for the projectsproject described in subdivisions 5 and 6 subdivision 
25.32 	5. The commissioner may provide for servicing of the loans and agreements, the times 
25.33 	they are payable and the amounts of payments, the amount of the loans and agreements, 
26.1 	their security, and other terms, conditions, and provisions necessary or convenient in 
26.2 	connection with them and may enter into all necessary contracts and security instruments 
26.3 	in connection with them. The commissioner shall seek to obtain the best available terms 
26.4 	and security for the loans or agreements. The terms and security must be reasonably 
26.5 	determined by the commissioner to be adequate and of the kind and degree which would 
26.6 	be required by an investment banking or other financial institution. The facilities described 
26.7 	in subdivisions 5 and 6subdivision 5 must be pledged as collateral for the loans made and 
26.8 	bonds issued under sections 116R.01 to 116R.16 116R.15. 
26.9 	(b) To reduce the risk that state general funds will be needed to pay debt service on 
26.10 	the state guaranteed bonds, the commissioner must require that the financing arrangements 
26.11 	include a coverage test satisfactory to the commissioner so that the sum of the value of the 
26.12 	assets and other security pledged to the payment of bonds or the rent due under any lease 
26.13 	of the project and taken into account by the commissioner is no less than 125 percent of 
26.14 	the difference between the outstanding state guaranteed bonds, and any cash collateral 
26.15 	held in a debt service reserve account and pledged to the payment of principal and interest 
26.16 	for the state guaranteed bonds and no other bonds. Assets and other security that may be 
26.17 	taken into account include (1) net unencumbered value of the project and any collateral 
26.18 	or third party guaranty, including a letter of credit, pledged or otherwise furnished by a 
26.19 	user of the project or by a benefited airline company as security for the payment of rent, 
26.20 	(2) bond proceeds, including earnings thereon, and (3) prepayments of rent, after making 
26.21 	such adjustments the commissioner determines to be appropriate to take into account 
26.22 	any outstanding bonds secured by a lien on the project or rent that is prior to the lien 
26.23 	securing the state guaranteed bonds, but excluding any cash collateral deducted from the 
26.24 	outstanding state guaranteed bonds in applying the coverage test. The commissioner may 
26.25 	adopt the method of valuing the assets and other security as the commissioner determines 
26.26 	to be appropriate, including valuation of the project at its original cost less depreciation.

26.27 	Sec. 28. Minnesota Statutes 2006, section 116R.02, subdivision 4, is amended to read:
26.28 		Subd. 4.Security. (a) If so provided in the commissioner's order or any indenture 
26.29 	authorizing the applicable series of bonds, up to $125,000,000 principal amount of bonds 
26.30 	for the facility described in subdivision 5, up to $50,000,000 principal amount of bonds 
26.31 	for the facility described in subdivision 6, and any bonds issued to refund these bonds may 
26.32 	be secured by either of the following methods:
26.33 	(1) upon the occurrence of any deficiency in a debt service reserve fund for a series 
26.34 	of bonds as provided in section 116R.13, subdivision 3, the commissioner shall issue and 
26.35 	sell deficiency bonds in a principal amount not to exceed (i) $125,000,000 for facilities 
27.1 	described in subdivision 5 and (ii) $50,000,000 for the facilities described in subdivision 
27.2 	6; or 
27.3 	(2) the bonds may be directly secured by a pledge of the full faith, credit, and taxing 
27.4 	power of the state and issued as general obligation revenue bonds of the state in accordance 
27.5 	with the Minnesota Constitution, article XI, sections 4 to 7. In no event may the security 
27.6 	provided by this paragraph extend in whole or part to any series of bonds other than the 
27.7 	initial series of bonds so secured and any series of bonds issued to refund these bonds.
27.8 	Deficiency bonds and bonds issued under clause (2) must be issued in accordance 
27.9 	with and subject to sections 16A.641, 16A.66, 16A.672, and 16A.675, except for section 
27.10 	16A.641, subdivision 5, except as otherwise provided in Laws 1991, chapter 350, article 
27.11 	1, and except that the bonds may be sold at public or private sale at a price or prices 
27.12 	determined by the commissioner as provided in section 116R.13, subdivision 3. 
27.13 	(b) The commissioner may request St. Louis County to pay or secure payment of 
27.14 	principal and interest due on up to $12,600,000 principal amount of revenue bonds for the 
27.15 	facility described in subdivision 5 and principal and interest due on up to $15,000,000 
27.16 	principal amount of revenue bonds for the facility described in subdivision 6. At the 
27.17 	request of the commissioner, St. Louis County shall, by resolution of its county board, 
27.18 	unconditionally and irrevocably pledge as a general obligation, its full faith, credit, and 
27.19 	taxing power to pay or secure payment of principal and interest due on the principal 
27.20 	amount or amounts requested by the commissioner. The general obligation and pledge of 
27.21 	St. Louis County are not subject to and shall not be taken into account for purposes of any 
27.22 	debt limitation. A levy of taxes for the St. Louis County general obligation is not subject 
27.23 	to and shall not be taken into account for purposes of any levy limitations. The general 
27.24 	obligation and the bonds secured by the general obligation may be issued without an 
27.25 	election. Except for sections 475.61 and 475.64, chapter 475 does not apply to the general 
27.26 	obligation or to the bonds secured by the general obligation. 
27.27 	(c) The commissioner may request the city of Duluth to pay or secure payment of 
27.28 	principal and interest due on up to $47,600,000 principal amount of revenue bonds for the 
27.29 	facility described in subdivision 5. At the request of the commissioner, the city of Duluth 
27.30 	shall pledge specified revenues of the city, as provided in Laws 1991, chapter 350, article 
27.31 	1, section 24, to pay principal and interest due on the principal amount requested by 
27.32 	the commissioner.
27.33 	(d) Bonds and deficiency bonds issued under sections 116R.01 to 116R.16116R.15 
27.34 	and any indenture entered into in connection with the issuance of the bonds are not subject 
27.35 	to section 16B.06.

28.1 	Sec. 29. Minnesota Statutes 2006, section 116R.02, subdivision 5, is amended to read:
28.2 		Subd. 5.Use of proceeds; aircraft maintenance facility. The proceeds of the 
28.3 	bonds issued in a principal amount not to exceed $250,000,000 may be used to finance 
28.4 	the costs related to the planning, construction, improvement, or equipping of a heavy 
28.5 	maintenance facility for aircraft and facilities subordinate and related to the facility to be 
28.6 	located at the Duluth International Airport and any costs of issuance, reserves, credit 
28.7 	enhancement, or an initial period of interest payments related to the bonds or the facility. 
28.8 	The bond proceeds are appropriated to the commissioner for the purposes specified in this 
28.9 	subdivision. The facility may be owned by the Metropolitan Airports Commission and 
28.10 	leased for the benefit of one or more airline companies for use as a heavy maintenance 
28.11 	base. With the approval of the commissioner, the owner of the facility may place a 
28.12 	mortgage or security interest lien on the facility or any interest in or part of the facility. 
28.13 	The mortgage is exempt from the mortgage registry tax imposed under chapter 287. In 
28.14 	the event of a default under the loan, lease agreement, or other revenue agreement, the 
28.15 	facility, or any part of the facility, may be leased or sold to another person for any lawful 
28.16 	purpose, subject to the approval of the commissioner. The approval of the commissioner 
28.17 	is not required if the bond trustee has taken control of the facility as a result of a default.
28.18 	The ownership of the facility by the owner may create no liability of the owner for 
28.19 	payment of the debt service on the bonds if so determined by the commissioner. The 
28.20 	owner may require as a condition of entering into the lease of the facility that the lessee or 
28.21 	other party pay all costs, expenses, or any other obligations of ownership of the facility.
28.22 	No revenues derived from the lease of the project may be used other than for a 
28.23 	purpose related to the project, including its operation, administration, maintenance, 
28.24 	improvement, or financing.

28.25 	Sec. 30. Minnesota Statutes 2006, section 116R.03, is amended to read:
28.26 	116R.03 GENERAL POWERS.
28.27 	For the purpose of exercising the specific powers authorized under sections 116R.01
28.28 	to 116R.16116R.15 and effectuating the other purposes of sections 116R.01 to 116R.16,
28.29 	116R.15, the commissioner may: 
28.30 	(1) acquire, hold, pledge, assign, lease, or dispose of real or personal property or 
28.31 	any interest in property, including a mortgage or security interest in a facility described in 
28.32 	section 116R.02, subdivision 5or 6; 
28.33 	(2) enter into agreements, contracts, or other transactions with any federal or state 
28.34 	agency, any person and any domestic or foreign partnership, corporation, association, or 
29.1 	organization, including contracts or agreements for administration and implementation of 
29.2 	all or part of sections 116R.01 to 116R.16 116R.15; 
29.3 	(3) acquire real property, or an interest therein, by purchase or foreclosure, where 
29.4 	the acquisition is necessary or appropriate;
29.5 	(4) enter into agreements with lenders, borrowers, or the issuers of securities for the 
29.6 	purpose of regulating the development and management of any facility financed in whole 
29.7 	or in part by the proceeds of bonds or loans;
29.8 	(5) enter into agreements with other appropriate federal, state, or local governmental 
29.9 	units; and
29.10 	(6) contract with, use, or employ any federal, state, regional, or local public or 
29.11 	private agency or organization, legal counsel, financial advisors, investment bankers or 
29.12 	others, upon terms the commissioner considers necessary or desirable, to assist in the 
29.13 	exercise of any of the powers authorized under sections 116R.01 to 116R.16 116R.15 and 
29.14 	to carry out the objectives of sections 116R.01 to 116R.16 116R.15 and may pay for the 
29.15 	services from bond proceeds or otherwise available department money.; and
29.16 	(7) in the event of a default under the loan, lease agreement, or other revenue 
29.17 	agreement, the facility, or any part of the facility, may be leased or sold to another person 
29.18 	for any lawful purpose, subject to the approval of the commissioner. The approval of the 
29.19 	commissioner is not required if the bond trustee has taken control of the facility as a 
29.20 	result of a default.

29.21 	Sec. 31. Minnesota Statutes 2006, section 116R.05, subdivision 2, is amended to read:
29.22 		Subd. 2.Sources of payment. Except as otherwise provided for bonds issued 
29.23 	under section 116R.02, subdivision 4, paragraph (a), the bonds and interest payable 
29.24 	thereon are payable solely from the following sources and are irrevocably appropriated 
29.25 	for that purpose, but only to the extent provided in the order or indenture authorizing or 
29.26 	securing the bonds: 
29.27 	(1) revenues of any nature derived from the ownership, lease, operation, sale, 
29.28 	foreclosure, or refinancing of a project described in section 116R.02, subdivision 5or 6; 
29.29 	(2) repayments of any loans made under sections 116R.01 to 116R.16 116R.15; 
29.30 	(3) proceeds of any bonds or deficiency bonds;
29.31 	(4) amounts in any account or accounts authorized by section 116R.11 or 116R.12; 
29.32 	(5) amounts paid by St. Louis County under its obligations referred to in section 
29.33 	116R.02, subdivision 4, and amounts paid under Laws 1991, chapter 350, article 1, section 
29.34 	24 or 25, for the payment of bonds or interest thereon; 
30.1 	(6) amounts payable under any insurance policy, guaranty, letter of credit, or other 
30.2 	instrument securing the bonds;
30.3 	(7) any other revenues which the commissioner may pledge but excluding state 
30.4 	appropriations unless the appropriation was specifically designated for that purpose; and
30.5 	(8) investment income on any of the sources specified in clauses (1) to (7).

30.6 	Sec. 32. Minnesota Statutes 2006, section 116R.11, subdivision 1, is amended to read:
30.7 		Subdivision 1.Funds. The commissioner or any trustee appointed by the 
30.8 	commissioner under sections 116R.01 to 116R.16116R.15 shall establish and maintain an 
30.9 	aircraft facilities fund for each of the projectsthe project described in section 116R.02, 
30.10 	subdivisions 5 and 6 subdivision 5. Except for amounts required by the commissioner to 
30.11 	be deposited in a debt service account, proceeds of each issue of bonds authorized under 
30.12 	section 116R.02, subdivision 1, must be deposited in a separate account, debt service 
30.13 	reserve, or other account designated by the commissioner. Money in the account is 
30.14 	appropriated to the commissioner. The commissioner or the owner of eachthe project 
30.15 	described in section 116R.02, subdivisions 5 and 6 subdivision 5, may withdraw proceeds 
30.16 	of bonds for application to the appropriated purposes in the manner provided by order 
30.17 	of the commissioner or in any indenture authorized by order of the commissioner. The 
30.18 	commissioner may establish whatever accounts might be necessary to carry out sections 
30.19 	116R.01 to 116R.16 116R.15. All deposits into and disbursements from accounts for the 
30.20 	purposes and from the sources of revenue authorized by sections 116R.01 to 116R.16
30.21 	116R.15 and provided in an order of the commissioner or an indenture or other agreement 
30.22 	authorized by the commissioner are appropriated for that purpose.

30.23 	Sec. 33. Minnesota Statutes 2006, section 116R.12, is amended by adding a subdivision 
30.24 	to read:
30.25 		Subd. 4.Approval. The approval of the commissioner is not required if the bond 
30.26 	trustee has taken control of the facility as a result of a default.

30.27 	Sec. 34. Minnesota Statutes 2006, section 272.01, subdivision 2, is amended to read:
30.28 		Subd. 2.Exempt property used by private entity for profit. (a) When any real or 
30.29 	personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is 
30.30 	leased, loaned, or otherwise made available and used by a private individual, association, 
30.31 	or corporation in connection with a business conducted for profit, there shall be imposed a 
30.32 	tax, for the privilege of so using or possessing such real or personal property, in the same 
30.33 	amount and to the same extent as though the lessee or user was the owner of such property.
31.1 	(b) The tax imposed by this subdivision shall not apply to:
31.2 	(1) property leased or used as a concession in or relative to the use in whole 
31.3 	or part of a public park, market, fairgrounds, port authority, economic development 
31.4 	authority established under chapter 469, municipal auditorium, municipal parking facility, 
31.5 	municipal museum, or municipal stadium;
31.6 	(2) property of an airport owned by a city, town, county, or group thereof which is:
31.7 	(i) leased to or used by any person or entity including a fixed base operator; and
31.8 	(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, 
31.9 	services, or facilities to the airport or general public;
31.10 	the exception from taxation provided in this clause does not apply to:
31.11 	(i) property located at an airport owned or operated by the Metropolitan Airports 
31.12 	Commission or by a city of over 50,000 population according to the most recent federal 
31.13 	census or such a city's airport authority; or
31.14 	(ii) hangars leased by a private individual, association, or corporation in connection 
31.15 	with a business conducted for profit other than an aviation-related business; or
31.16 	(iii) facilities leased by a private individual, association, or corporation in connection 
31.17 	with a business for profit, that consists of a major jet engine repair facility financed, in 
31.18 	whole or part, with the proceeds of state bonds and located in a tax increment financing 
31.19 	district;
31.20 	(3) property constituting or used as a public pedestrian ramp or concourse in 
31.21 	connection with a public airport;
31.22 	(4) property constituting or used as a passenger check-in area or ticket sale counter, 
31.23 	boarding area, or luggage claim area in connection with a public airport but not the 
31.24 	airports owned or operated by the Metropolitan Airports Commission or cities of over 
31.25 	50,000 population or an airport authority therein. Real estate owned by a municipality 
31.26 	in connection with the operation of a public airport and leased or used for agricultural 
31.27 	purposes is not exempt;
31.28 	(5) property leased, loaned, or otherwise made available to a private individual, 
31.29 	corporation, or association under a cooperative farming agreement made pursuant to 
31.30 	section 97A.135; or
31.31 	(6) property leased, loaned, or otherwise made available to a private individual, 
31.32 	corporation, or association under section 272.68, subdivision 4.
31.33 	(c) Taxes imposed by this subdivision are payable as in the case of personal property 
31.34 	taxes and shall be assessed to the lessees or users of real or personal property in the same 
31.35 	manner as taxes assessed to owners of real or personal property, except that such taxes 
31.36 	shall not become a lien against the property. When due, the taxes shall constitute a debt 
32.1 	due from the lessee or user to the state, township, city, county, and school district for 
32.2 	which the taxes were assessed and shall be collected in the same manner as personal 
32.3 	property taxes. If property subject to the tax imposed by this subdivision is leased or used 
32.4 	jointly by two or more persons, each lessee or user shall be jointly and severally liable for 
32.5 	payment of the tax.
32.6 	(d) The tax on real property of the state or any of its political subdivisions that is 
32.7 	leased by a private individual, association, or corporation and becomes taxable under 
32.8 	this subdivision or other provision of law must be assessed and collected as a personal 
32.9 	property assessment. The taxes do not become a lien against the real property.

32.10 	Sec. 35. Minnesota Statutes 2006, section 290.06, subdivision 24, is amended to read:
32.11 		Subd. 24.Credit for job creation. (a) A corporation that leases and operates 
32.12 	a heavy maintenance base for aircraft that is owned by the state of Minnesota or one 
32.13 	of its political subdivisions, or an engine repair facility described in section 116R.02, 
32.14 	subdivision 6, or both, may take a credit against the tax due under this chapter. 
32.15 	(b) For the first taxable year when the facility has been in operation for at least three 
32.16 	consecutive months, the credit is equal to $5,000 multiplied by the number of persons 
32.17 	employed by the corporation on a full-time basis at the facility on the last day of the taxable 
32.18 	year, not to exceed the number of persons employed by the corporation on a full-time basis 
32.19 	at the facility on the date 90 days before the last day of the taxable year. For each of the 
32.20 	succeeding four taxable years, the credit is equal to $5,000 multiplied by the number of 
32.21 	persons employed by the corporation on a full-time basis at the facility on the last day of 
32.22 	the taxable year, not to exceed the number of persons employed by the corporation on a 
32.23 	full-time basis at the facility on the date 90 days before the last day of the taxable year.
32.24 	(c) For the first taxable year in which the credit is allowed for the facility, the credit 
32.25 	must not exceed 80 percent of the wages paid to or incurred for persons employed by the 
32.26 	taxpayer at the facility during the taxable year. For the succeeding four taxable years, the 
32.27 	credit must not exceed 20 percent of the wages paid to or incurred for persons employed 
32.28 	by the taxpayer at the facility during the taxable year. For purposes of this section, 
32.29 	"wages" has the meaning given under section 3121(b) of the Internal Revenue Code, 
32.30 	except the limitation to the contribution and benefit base does not apply.
32.31 	(d) If the credit provided under this subdivision exceeds the tax liability of the 
32.32 	corporation for the taxable year, the excess amount of the credit may be carried over to 
32.33 	each of the 20 taxable years succeeding the taxable year. The entire amount of the credit 
32.34 	must be carried to the earliest taxable year to which the amount may be carried. The 
32.35 	unused portion of the credit must be carried to the following taxable year. No credit 
33.1 	may be carried to a taxable year more than 20 years after the taxable year in which the 
33.2 	credit was earned.
33.3 	(e) If an unused portion of the credit remains at the end of the carryover period under 
33.4 	paragraph (d), the commissioner shall refund the unused portion to the taxpayer. The 
33.5 	provisions of this paragraph do not apply if the corporation that earned the credit under this 
33.6 	subdivision or a successor in interest to the corporation filed for bankruptcy protection.

33.7 	Sec. 36. Minnesota Statutes 2006, section 297A.71, subdivision 10, is amended to read:
33.8 		Subd. 10.Aircraft heavy maintenance facility. Materials, equipment, and supplies 
33.9 	used or consumed in constructing a heavy maintenance facility for aircraft that is to be 
33.10 	owned by the state of Minnesota or one of its political subdivisions and leased by an airline 
33.11 	company, or an aircraft engine repair facility described in section 116R.02, subdivision 
33.12 	6, areis exempt. Except for equipment owned or leased by a contractor, all machinery, 
33.13 	equipment, and tools necessary to the construction and equipping of that facility in order 
33.14 	to provide those services are also exempt. 

33.15 	Sec. 37. Minnesota Statutes 2006, section 360.013, subdivision 39, is amended to read:
33.16 		 Subd. 39.Airport. "Airport" means any area of land or water, except a restricted 
33.17 	landing area, which is designed for the landing and takeoff of aircraft, whether or not 
33.18 	facilities are provided for the shelter, surfacing, or repair of aircraft, or for receiving or 
33.19 	discharging passengers or cargo, and all appurtenant areas used or suitable for airport 
33.20 	buildings or other airport facilities, including facilities described in section 116R.02, 
33.21 	subdivision 6, and all appurtenant rights-of-way, whether heretofore or hereafter 
33.22 	established. The operation and maintenance of airports is an essential public service.

33.23 	Sec. 38. Minnesota Statutes 2006, section 360.032, subdivision 1, is amended to read:
33.24 		Subdivision 1.Acquisition. Every municipality is hereby authorized, through its 
33.25 	governing body, to acquire property, real or personal, for the purpose of establishing, 
33.26 	constructing, and enlarging airports and other air navigation facilities and to acquire, 
33.27 	establish, construct, enlarge, improve, maintain, equip, operate, and regulate such airports 
33.28 	and other air navigation facilities and structures and other property incidental to their 
33.29 	operation, either within or without the territorial limits of such municipality and within 
33.30 	or without this state; to make, prior to any such acquisition, investigations, surveys, and 
33.31 	plans; to construct, install, and maintain airport facilities for the servicing and repair of 
33.32 	aircraft and facilities authorized under section 116R.02, subdivision 6, and for the comfort 
33.33 	and accommodation of air travelers; and to purchase and sell equipment and supplies as 
34.1 	an incident to the operation of its airport properties. It may not acquire, or take over any 
34.2 	airport or other air navigation facility owned or controlled by any other municipality of 
34.3 	the state without the consent of such municipality. It may use for airport purposes any 
34.4 	available property that is now or may at any time hereafter be owned or controlled by it. 
34.5 	Such air navigation facilities as are established on airports shall be supplementary to and 
34.6 	coordinated in design and operation with those established and operated by the federal and 
34.7 	state governments. It may assist other municipalities in the construction of approach roads 
34.8 	leading to any airport or restricted landing area owned or controlled by it. In financing the 
34.9 	facilities authorized under section 116R.02, subdivision 6, it may borrow from the state 
34.10 	or otherwise arrange for financing of the facilities and for that purpose may exercise any 
34.11 	powers vested in a municipality under sections 469.152 to 469.165.

34.12 	Sec. 39. Minnesota Statutes 2006, section 360.038, subdivision 4, is amended to read:
34.13 		Subd. 4.Leased property. To lease for a term not exceeding 30 years such airports,
34.14 	or other air navigation facilities or facilities authorized under section 116R.02, subdivision 
34.15 	6, or real property acquired or set apart for airport purposes, to private parties, any 
34.16 	municipal or state government or the national government, or any department of either 
34.17 	thereof, for operation; to lease or assign for a term not exceeding 99 years to private 
34.18 	parties, any municipal or state government, or the national government, or any department 
34.19 	of either thereof, for operation or use consistent with the purposes of sections 360.011 to 
34.20 	360.076, space, area, improvements, or equipment on such airports; notwithstanding any 
34.21 	other provisions in this subdivision, to lease ground area for a term not exceeding 99 years 
34.22 	to private persons for the construction of structures which in its opinion are essential and 
34.23 	necessary to serve aircraft, persons, and things engaged in or incidental to aeronautics, 
34.24 	including but not limited to shops, hangars, offices, restaurants, hotels, motels, factories, 
34.25 	storage space, and any and all other structures necessary or essential to and consistent with 
34.26 	the purposes of sections 360.011 to 360.076, to sell any part of such airports, other air 
34.27 	navigation facilities, or real property to any municipal or state government, or to the 
34.28 	United States or any department or instrumentality thereof, for aeronautical purposes 
34.29 	incidental thereto, and to confer the privileges of concessions of supplying upon its 
34.30 	airports goods, commodities, things, services, and facilities; provided that in each case in 
34.31 	so doing the public is not deprived of its rightful, equal, and uniform use thereof. 

34.32 	Sec. 40. Laws 2005, chapter 20, article 1, section 7, subdivision 21, is amended to read:

34.33
34.34	Subd. 21.State Park and Recreation Area 
Acquisition
 				2,500,000
	
35.1 	For acquisition of land under Minnesota 
35.2 	Statutes, section 86A.05, subdivisions 2 and 
35.3 	3, from willing sellers of private lands within 
35.4 	state park and recreation area boundaries 
35.5 	established by law.
35.6 	$500,000 is to purchase land within the 
35.7 	boundaries of Greenleaf Lake state park 
35.8 	in Meeker county. The commissioner of 
35.9 	natural resources, in consultation with the 
35.10 	local elected officials and citizens of Meeker 
35.11 	County, shall develop a plan for Greenleaf 
35.12 	Lake State Park. The commissioner shall 
35.13 	submit the plan to the legislative committees 
35.14 	with jurisdiction over state parks and capital 
35.15 	investment by February 1, 2008.

35.16 	Sec. 41. Laws 2005, chapter 20, article 1, section 20, subdivision 3, is amended to read:

35.17
35.18	Subd. 3.Systemwide Redevelopment, Reuse, 
or Demolition
 				17,600,000
	
35.19 	To demolish or improve surplus, 
35.20 	nonfunctional, or deteriorated facilities and 
35.21 	infrastructure at Department of Human 
35.22 	Services campuses statewide.
35.23 	(a) Up to $8,600,000 may be used to 
35.24 	predesign, design, construct, furnish, 
35.25 	and equip renovation of existing space 
35.26 	or construction of new space for skilled 
35.27 	nursing home capacity for forensic treatment 
35.28 	programs operated by state-operated services 
35.29 	on the campus of St. Peter Regional 
35.30 	Treatment Center.
35.31 	(b) $4,000,000 may be used to prepare 
35.32 	and develop a site, including demolition of 
35.33 	buildings and infrastructure, to implement 
35.34 	the redevelopment and reuse of the 
36.1 	Ah-Gwah-Ching Regional Treatment Center 
36.2 	campus. If the property is sold or transferred 
36.3 	to a local unit of government, the unspent 
36.4 	portion of this appropriation may be granted 
36.5 	to the local unit of government that acquires 
36.6 	the campus for the purposes stated in this 
36.7 	subdivision. Notwithstanding Minnesota 
36.8 	Statutes, section 16A.642, this appropriation 
36.9 	and its corresponding bond authorization do 
36.10 	not cancel until June 30, 2010.
36.11 	(c) $1,000,000 may be used to renovate one 
36.12 	or more buildings for chemical dependency 
36.13 	treatment specializing in methamphetamine 
36.14 	addiction, and demolish buildings, on the 
36.15 	Willmar Regional Treatment Center campus. 
36.16 	If the property is sold or transferred to a local 
36.17 	unit of government, the unspent portion of 
36.18 	this appropriation may be granted to the local 
36.19 	unit of government that acquires the campus 
36.20 	for the purposes stated in this subdivision.
36.21 	(d) Up to $2,210,000 may be spent by the 
36.22 	commissioner of finance to retire municipal 
36.23 	bonds issued by the city of Fergus Falls and 
36.24 	to retire interfund loans incurred by the city 
36.25 	of Fergus Falls in connection with the waste 
36.26 	incinerator and steam heating facility at the 
36.27 	Fergus Falls Regional Treatment Center.
36.28 	(e) Up to $400,000 may be used for a grant to 
36.29 	the city of Fergus Falls to demolish the city's 
36.30 	waste-to-energy incineration plant located 
36.31 	on the grounds of the Fergus Falls Regional 
36.32 	Treatment Center.
36.33 	(f) The provisions, terms, and conditions 
36.34 	of any grant made by the director of the 
36.35 	Office of Environmental Assistance under 
37.1 	Minnesota Statutes, chapter 115A, to the 
37.2 	city of Fergus Falls for the waste incinerator 
37.3 	steam heating facility that supports the 
37.4 	Fergus Falls Regional Treatment Center and 
37.5 	that may come into effect as a result of the 
37.6 	incinerator and facility being closed, are 
37.7 	hereby waived.

37.8 	Sec. 42. Laws 2005, chapter 20, article 1, section 23, subdivision 8, is amended to read:

37.937.10
	Subd. 8.Lewis and Clark Rural Water System, 
Inc.
 				2,000,000
	
37.11 	This appropriation is from the general fund 
37.12 	to the Public Facilities Authority for grants 
37.13 	to the city of Luverne, city of Worthington 
37.14 	Public Utilities, Lincoln-Pipestone rural 
37.15 	water system, and Rock County rural water 
37.16 	systemLewis and Clark Joint Powers 
37.17 	Board to acquire land, predesign, design, 
37.18 	construct, furnish, and equip one or more
37.19 	water transmission and storage facilities to 
37.20 	accommodate the connection with of the 
37.21 	Lewis and Clark Rural Water System, Inc. 
37.22 	that will serve southwestern Minnesota.
37.23 	The grants Payment to the Lewis and Clark 
37.24 	Rural Water System, Inc., must be awarded 
37.25 	to projects approved by the Lewis and Clark 
37.26 	Joint Powers Board.
37.27 	This appropriation is available only to the 
37.28 	extent that each $1 of state money is matched 
37.29 	by at least $1 of local money paid to the 
37.30 	Lewis and Clark Rural Water System, Inc.
37.31 	for each $1 of state money to be used to 
37.32 	reimburse costs incurred on eligible projects.
37.33 	This appropriation is the first phase of the 
37.34 	state share for the Lewis and Clark Rural 
38.1 	Water System, Inc. project as defined in the 
38.2 	federal Lewis and Clark Rural Water System 
38.3 	Act of 2000.

38.4 	Sec. 43. Laws 2005, chapter 20, article 1, section 23, subdivision 16, is amended to 
38.5 	read:

38.6	Subd. 16.Minneapolis

38.7	(a) Minnesota Planetarium
				22,000,000
	
38.8 	For a grant to the city of Minneapolis
38.9 	Hennepin County to complete design and 
38.10 	to construct, furnish, and equip a new 
38.11 	Minnesota planetarium and space discovery 
38.12 	center in conjunction with the Minneapolis 
38.13 	downtown library.

38.14	(b) Heritage Park
					
38.15 	Any unspent balance remaining on December 
38.16 	31, 2004, in the appropriation made by 
38.17 	Laws 2000, chapter 492, article 1, section 
38.18 	22, subdivision 10, for a grant to the city of 
38.19 	Minneapolis, may be used by the city for 
38.20 	improvements to the Heritage Park project.

38.21	(c) Minnesota Shubert Center
				1,000,000
	
38.22 	For a grant to the city of Minneapolis to 
38.23 	predesign and design and provide for related 
38.24 	capital costs for an associated atrium to 
38.25 	create the Minnesota Shubert Center.

38.26 	EFFECTIVE DATE. This section is effective on the same date as H.F. 1973/S.F. 
38.27 	1812, if enacted in the 2007 legislative session.

38.28 	Sec. 44. Laws 2006, chapter 258, section 4, subdivision 4, is amended to read:

38.29	Subd. 4.MacPhail Music Center
 				5,000,000
	
38.30 	(a) For a grant to the city of Minneapolis to 
38.31 	predesign, design, construct, furnish, and 
39.1 	equip a new facility for the MacPhail Center 
39.2 	for Music. The city of Minneapolis may 
39.3 	enter into a lease or management agreement 
39.4 	to operate the center, subject to Minnesota 
39.5 	Statutes, section 16A.695. This appropriation 
39.6 	is not available until the commissioner has 
39.7 	determined that not less than $15,000,000 
39.8 	has been committed to the MacPhail Center 
39.9 	for Music from nonstate sources, and that 
39.10 	the available money is sufficient to complete 
39.11 	a functional facility. Money secured before 
39.12 	the effective date of this section may count 
39.13 	toward the required commitment of nonstate 
39.14 	sources, provided it is used for qualified 
39.15 	capital expenditures. Any land acquisition 
39.16 	costs paid by MacPhail Center for Music 
39.17 	qualify as capital expenditures.
39.18 	(b) The city of Minneapolis may provide 
39.19 	money to predesign, design, construct, 
39.20 	furnish, and equip a center for music 
39.21 	education, including classrooms and a 
39.22 	recital hall in the city of Minneapolis, 
39.23 	to provide a facility for education of 
39.24 	students, music therapy programs for 
39.25 	persons with disabilities, music teacher 
39.26 	training opportunities, curriculum and 
39.27 	program development, and to provide the 
39.28 	programming in public and private schools 
39.29 	and in partnership with other organizations 
39.30 	throughout the state.
39.31 	(c) The required demonstration of a 
39.32 	commitment of funds from nonstate sources 
39.33 	has been met by cash, prepaid qualified 
39.34 	expenses, and private multiyear pledges that 
39.35 	have been converted into cash through bond 
39.36 	financing and a letter of credit secured by 
40.1 	a mortgage lien on the state bond financed 
40.2 	property. The $5,000,000 construction grant 
40.3 	shall be disbursed without requirement that 
40.4 	the mortgage lien be released.
40.5 	(d) The commissioners of education and 
40.6 	finance shall agree to a provision in the 
40.7 	ground lease that permits the city of 
40.8 	Minneapolis to purchase for fair market 
40.9 	value, as that term is defined in Minnesota 
40.10 	Statutes, section 16A.695, subdivision 1, 
40.11 	paragraph (d), the interest of the operating 
40.12 	lease lessee in the state bond financed 
40.13 	property (based on investment in land 
40.14 	and capital improvements) in the event of 
40.15 	nonrenewal of the operating lease at the time 
40.16 	of nonrenewal without requirement of a prior 
40.17 	escrow for funds by the city of Minneapolis.

40.18 	EFFECTIVE DATE. This section is effective retroactively from June 2, 2006.

40.19 	Sec. 45. Laws 2006, chapter 258, section 7, subdivision 11, is amended to read:

40.20	Subd. 11.Water control structures
 				1,000,000
	
40.21 	To rehabilitate or replace water control 
40.22 	structures used to manage shallow lakes and 
40.23 	wetlands for waterfowl habitat on wildlife 
40.24 	management areas under Minnesota Statutes, 
40.25 	section 86A.05, subdivision 8, or for the 
40.26 	purposes of public water reserves under 
40.27 	Minnesota Statutes, section 97A.101.

40.28 	Sec. 46. Laws 2006, chapter 258, section 21, subdivision 6, is amended to read:

40.29	Subd. 6.Redevelopment Account
 				9,000,000
	
40.30 	For purposes of the redevelopment account 
40.31 	under Minnesota Statutes, section 116J.571.
41.1 	$800,000 is for a grant to the city of 
41.2 	Worthington to remediate contaminated 
41.3 	soil and redevelop the site of the former 
41.4 	Campbell Soup factory. This grant is exempt 
41.5 	from the requirements of Minnesota Statutes, 
41.6 	sections 116J.572 to 116J.575.
41.7 	$250,000 is for a grant to the city of 
41.8 	Winona to predesign facilities for the 
41.9 	Shakespeare Festival as part of the riverfront 
41.10 	redevelopment plan. This grant is exempt 
41.11 	from the requirements of Minnesota Statutes, 
41.12 	sections 116J.572 to 116J.575.

41.13 	Sec. 47. Laws 2006, chapter 258, section 21, subdivision 15, is amended to read:

41.14
41.15	Subd. 15.Lewis and Clark Rural Water 
System, Inc.
 				3,282,000
	
41.16 	This appropriation is from the general fund 
41.17 	to the Public Facilities Authority for grants 
41.18 	to the city of Luverne, city of Worthington 
41.19 	Public Utilities, Lincoln-Pipestone rural 
41.20 	water system, and Rock County rural water 
41.21 	system Lewis and Clark Joint Powers 
41.22 	Board to acquire land, predesign, design, 
41.23 	construct, furnish, and equip one or more
41.24 	water transmission and storage facilities to 
41.25 	accommodate the connection with of the 
41.26 	Lewis and Clark Rural Water System, Inc. 
41.27 	that will serve southwestern Minnesota.
41.28 	The grants Payment to the Lewis and Clark 
41.29 	Rural Water System, Inc., must be awarded 
41.30 	to projects approved by the Lewis and Clark 
41.31 	Joint Powers Board.
41.32 	This appropriation is available to the extent 
41.33 	that each $1 of state money is matched by at 
41.34 	least $1 of local money paid to the Lewis and 
42.1 	Clark Rural Water System, Inc. to reimburse 
42.2 	the system for costs incurred on eligible 
42.3 	projects.

42.4 	Sec. 48. REPORT ON EAST PHILLIPS CULTURAL AND COMMUNITY 
42.5 	CENTER.
 42.6 	The Metropolitan Council shall report by January 1, 2008, to the legislative 
42.7 	committees with jurisdiction over capital investment on the terms of the grant agreement 
42.8 	and progress on design and construction of the East Phillips Cultural and Community 
42.9 	Center by the Minneapolis Park and Recreation Board with the appropriation in Laws 
42.10 	2006, chapter 258, section 17, subdivision 8.

42.11 	Sec. 49. PUBLIC FACILITIES AUTHORITY FUNDING.
 42.12 	To the greatest practical extent, projects on the Public Facilities Authority's 2007 
42.13 	intended use plan, the listings for which were based on the Pollution Control Agency's 
42.14 	2006 project priority list, shall be carried over to the 2008 intended use plan. Projects that 
42.15 	qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258, 
42.16 	section 21, that could not be certified by the Pollution Control Agency by the applicable 
42.17 	deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court 
42.18 	issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to 
42.19 	obtain the required certification from the Pollution Control Agency.

42.20 	Sec. 50. REVISOR'S INSTRUCTION.
 42.21 	The revisor of statutes shall change "116R.01 to 116R.16" to "116R.01 to 116R.15" 
42.22 	wherever it appears in Minnesota Statutes.

42.23 	Sec. 51.  REPEALER.
 42.24 	Minnesota Statutes 2006, sections 116R.02, subdivisions 3, 6, 7, and 9; and 116R.16,
42.25 	are repealed.

42.26 	Sec. 52. EFFECTIVE DATE.
 42.27 	Except as otherwise provided, this act is effective the day following final enactment.