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; establishing new programs and modifying existing programs; 
1.5 	authorizing the sale of state bonds; canceling and modifying previous 
1.6 	appropriations; appropriating money;amending Minnesota Statutes 2006, 
1.7 	sections 85.013, by adding a subdivision; 116R.01, subdivision 6; 116R.02, 
1.8 	subdivisions 1, 2, 4, 5; 116R.03; 116R.05, subdivision 2; 116R.11, subdivision 1; 
1.9 	116R.12, by adding a subdivision; 272.01, subdivision 2; 290.06, subdivision 
1.10 	24; 297A.71, subdivision 10; 360.013, subdivision 39; 360.032, subdivision 1; 
1.11 	360.038, subdivision 4; Laws 2005, chapter 20, article 1, sections 7, subdivisions 
1.12 	2, 21; 17; 20, subdivision 3; 21, subdivision 2; 23, subdivisions 8, 16; Laws 
1.13 	2005, chapter 156, article 2, section 46; Laws 2006, chapter 258, sections 4, 
1.14 	subdivision 4; 7, subdivisions 3, 7, 11, 22; 16, subdivision 4; 21, subdivisions 
1.15 	6, 15; 23, subdivision 3; repealing Minnesota Statutes 2006, sections 85.012, 
1.16 	subdivision 24b; 116R.02, subdivisions 3, 6, 7, 9; 116R.16; Laws 2006, chapter 
1.17 	258, section 14, subdivision 6.
1.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

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

1.28	SUMMARY
	
1.29	University of Minnesota
	$
	36,400,000
	
2.1	Minnesota State Colleges and Universities
		34,520,000
	
2.2	Education
		30,240,000
	
2.3	Natural Resources
		4,684,000
	
2.4	Pollution Control Agency
		2,500,000
	
2.5	Board of Water and Soil Resources
		8,165,000
	
2.6	Zoological Garden
		1,526,000
	
2.7	Administration
		15,240,000
	
2.8	Public Safety
		7,550,000
	
2.9	Transportation
		53,673,000
	
2.10	Metropolitan Council
		51,150,000
	
2.11	Human Services
		150,000
	
2.12	Corrections
		6,117,000
	
2.13	Employment and Economic Development
		82,150,000
	
2.14	Bond Sale Expenses
		167,000
	
2.15	Cancellations
		(5,432,000)
	
2.16	Lewis and Clark
		5,282,000
	
2.17	TOTAL
	$
	334,082,000
	
2.18	Bond Proceeds Fund (General Fund Debt Service)
		110,438,000
	
2.19	Bond Proceeds Fund (User Financed Debt Service)
		1,267,000
	
2.20	State Transportation Fund
		30,000,000
	
2.21	Trunk Highway Fund Bond Proceeds Account
		33,420,000
	
2.22	General Fund
		164,389,000
	
2.23	Bond Proceeds Cancellations
		(5,432,000)

2.24				APPROPRIATIONS

2.25	Sec. 2. UNIVERSITY OF MINNESOTA

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

2.30
2.31	Subd. 2.Higher Education Asset Preservation 
and Replacement (HEAPR)
 				22,000,000
	
2.32 	To be spent in accordance with Minnesota 
2.33 	Statutes, section 135A.046. 

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

3.4
3.5	Sec. 3. MINNESOTA STATE COLLEGES 
AND UNIVERSITIES

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

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

3.18	Subd. 3.Bemidji State University
 				2,000,000
	
3.19 	To acquire property adjacent to Bemidji State 
3.20 	University.

3.21
3.22	Subd. 4.Fond du Lac Tribal and Community 
College
 				1,800,000
	
3.23 	To acquire property adjacent to the Fond du 
3.24 	Lac Tribal and Community College.

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

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

5.19
5.20	Sec. 4. MINNESOTA DEPARTMENT OF 
EDUCATION

5.21	Subdivision 1.Total Appropriation
 			$
	30,240,000
	
5.22 	To the commissioner of education for the 
5.23 	purposes specified in this section. The 
5.24 	appropriations in this section are from the 
5.25 	general fund.

5.26
5.27	Subd. 2.Independent School District No. 11, 
Anoka-Hennepin
 				240,000
	
5.28 	For a grant to Independent School District 
5.29 	No. 11, Anoka-Hennepin, to acquire land 
5.30 	adjacent to Riverview Elementary School 
5.31 	and for improvements of a capital nature 
5.32 	to develop and restore wetland and native 
5.33 	prairie habitat on the land.

5.34
5.35	Subd. 3.Independent School District No. 38, 
Red Lake
 				30,000,000
	
6.1 	For a grant to Independent School District 
6.2 	No. 38, Red Lake, to design, construct, 
6.3 	furnish, and equip renovation of existing 
6.4 	facilities and construction of new facilities. 
6.5 	The project includes renovation of, 
6.6 	and an addition to, the high school and 
6.7 	middle school to provide classrooms and 
6.8 	related facilities for technology education, 
6.9 	vocational education, physical education, 
6.10 	and community education, and to provide 
6.11 	for food services and administrative offices. 
6.12 	The heating plant and piping for the high 
6.13 	school and middle school will be upgraded 
6.14 	and the motor vehicle fuel and propane tanks 
6.15 	may be relocated. The project may include 
6.16 	renovation of the Red Lake Elementary 
6.17 	School to add classrooms and to link it 
6.18 	to the Early Childhood Learning Center. 
6.19 	The project may include renovation of the 
6.20 	Ponemah Elementary School to add a media 
6.21 	center and Head Start center, add parking, 
6.22 	improve the bus drop-off, and expand 
6.23 	playground facilities. The commissioner 
6.24 	and Independent School District No. 38, 
6.25 	Red Lake, shall report to the legislature by 
6.26 	January 10, 2008, on the progress of the 
6.27 	project funded by the grant. The unexpended 
6.28 	balance of the appropriation in Laws 2005, 
6.29 	chapter 20, article 1, section 5, subdivision 
6.30 	2, as amended by Laws 2006, chapter 258, 
6.31 	section 42, to design, construct, renovate, 
6.32 	furnish, equip, and make health and safety 
6.33 	capital improvements to school facilities may 
6.34 	be added to this appropriation.

6.35	Sec. 5. NATURAL RESOURCES

7.1	Subdivision 1.Total Appropriation
 			$
	4,684,000
	
7.2 	To the commissioner of natural resources for 
7.3 	the purposes specified in this section.
7.4 	The appropriations in this section are from 
7.5 	the general fund.
7.6 	The appropriations in this section are subject 
7.7 	to the requirements of the natural resources 
7.8 	capital improvement program set forth in 
7.9 	Minnesota Statutes, section 86A.12, unless 
7.10 	this section or the statutes referred to in this 
7.11 	section provide more specific standards, 
7.12 	criteria, or priorities for projects than 
7.13 	Minnesota Statutes, section 86A.12.

7.14	Subd. 2.Stillwater Flood Control Phase III
 				200,000
	
7.15 	For a grant under Minnesota Statutes, 
7.16 	section 103F.161, to the city of Stillwater to 
7.17 	predesign, design, and begin construction 
7.18 	of Phase III of the Stillwater flood control 
7.19 	project, including flood control structures 
7.20 	and pumping stations. This appropriation 
7.21 	is not available until the commissioner has 
7.22 	determined that at least $2,000,000 has been 
7.23 	committed from nonstate sources.

7.24	Subd. 3.Canisteo Mine
 				1,300,000
	
7.25 	For a grant to the Western Mesabi Mine 
7.26 	Planning Board to construct siphons, a 
7.27 	conveyance system, and other improvements 
7.28 	to accommodate water level and outflow 
7.29 	control of the water level in the Canisteo 
7.30 	mine pit in Itasca County. This appropriation 
7.31 	does not require a local match. The 
7.32 	commissioner of natural resources shall be 
7.33 	responsible to maintain the improvements 
7.34 	after completion of the project.

8.1	Subd. 4.Lake Zumbro Restoration
 				350,000
	
8.2 	For an agreement with Olmsted and 
8.3 	Wabasha Counties to design and engineer 
8.4 	the restoration of Lake Zumbro. This is a 
8.5 	onetime appropriation and is available until 
8.6 	June 30, 2009.

8.7	Subd. 5.Red River Digital Elevation Model
 				600,000
	
8.8 	To develop and implement a high-resolution 
8.9 	digital elevation model for the Red River 
8.10 	basin.

8.11	Subd. 6.Greenleaf Lake State Recreation Area
 				500,000
	
8.12 	To acquire from willing sellers land 
8.13 	within the boundaries of Greenleaf Lake 
8.14 	State Recreation Area, established under 
8.15 	Minnesota Statutes, section 85.013, 
8.16 	subdivision 11b.

8.17	Subd. 7.Fort Snelling Upper Bluff
 				500,000
	
8.18 	For a grant to Hennepin County to conduct 
8.19 	emergency building stabilization at Fort 
8.20 	Snelling Upper Bluff. This appropriation 
8.21 	is not available until the commissioner of 
8.22 	finance has determined that Hennepin County 
8.23 	has entered into appropriate agreements to 
8.24 	use sentence-to-serve labor for the project 
8.25 	that will train sentence-to-serve laborers in 
8.26 	the skills needed for the work.

8.27
8.28	Subd. 8.State Trail Acquisition and 
Development
 				1,234,000
	
8.29 	To acquire land for and to construct and 
8.30 	renovate state trails under Minnesota 
8.31 	Statutes, section 85.015.
9.1 	$125,000 is for the Cuyuna Lakes Trail, to 
9.2 	develop a natural surface multiuse trail in the 
9.3 	Cuyuna Country State Recreation Area.
9.4 	$650,000 is for the Gateway Trail, to replace 
9.5 	an at-grade crossing of the Gateway Trail at 
9.6 	Highway 120 with a tunnel.
9.7 	$209,000 is for the Luce Line Trail, to 
9.8 	acquire land for, develop, and rehabilitate the 
9.9 	trail.
9.10 	$250,000 is for acquisition of the Browns 
9.11 	Creek segment of the Willard Munger Trail 
9.12 	System, currently the right-of-way for the 
9.13 	Minnesota Zephyr.

9.14	Sec. 6. POLLUTION CONTROL AGENCY
 			$
	2,500,000

9.15	Closed landfill program
 					
9.16 	This appropriation is from the general fund 
9.17 	for a grant to the city of Albert Lea to 
9.18 	construct remedial systems at the Albert 
9.19 	Lea landfill. This includes relocating and 
9.20 	incorporating waste from the former Albert 
9.21 	Lea dump owned by the city of Albert 
9.22 	Lea under Minnesota Statutes, section 
9.23 	115B.403, which action may be taken by the 
9.24 	Pollution Control Agency notwithstanding 
9.25 	the provisions of Minnesota Statutes, section 
9.26 	115B.403, paragraphs (a) and (b).
9.27 	The appropriation in this section is added to 
9.28 	the amounts for the city of Albert Lea landfill 
9.29 	funding in Laws 2006, chapter 258, section 
9.30 	8, subdivision 2.

9.31
9.32	Sec. 7. BOARD OF WATER AND SOIL 
RESOURCES

9.33	Subdivision 1.Total Appropriation
 			$
	8,165,000
	
10.1 	To the Board of Water and Soil Resources 
10.2 	for the purposes specified in this section. The 
10.3 	appropriations in this section are from the 
10.4 	general fund.

10.5	Subd. 2.RIM Conservation Reserve
 				8,000,000
	
10.6 	To acquire conservation easements from 
10.7 	landowners on marginal lands and to 
10.8 	construct conservation measures on acquired 
10.9 	land in order to protect soil and water quality 
10.10 	and to support fish and wildlife habitat as 
10.11 	provided in Minnesota Statutes, sections 
10.12 	103F.501 to 103F.535. Of this, $1,200,000 
10.13 	is to implement the program. The board 
10.14 	must submit to the legislative committees 
10.15 	with jurisdiction over environment finance 
10.16 	and capital investment an interim report on 
10.17 	this program by October 1, 2007, and a final 
10.18 	report by February 1, 2008.

10.19	Subd. 3.Lake Titlow Watershed Improvements
 				165,000
	
10.20 	$150,000 is for a grant to the city of Gaylord 
10.21 	to predesign and design holding ponds 
10.22 	upstream from Lake Titlow. The design 
10.23 	must include the best location for the ponds, 
10.24 	an estimate of the cost of land acquisition 
10.25 	or easements, construction costs of the 
10.26 	holding ponds, and the estimated expense 
10.27 	of maintaining the structures and who will 
10.28 	be responsible for the expense. The city 
10.29 	must also coordinate with state and county 
10.30 	conservation officials to ensure correct 
10.31 	conservation practices and improvements in 
10.32 	the watershed district.
10.33 	$15,000 is for a grant to the city of Gaylord to 
10.34 	purchase open intake tile covers or cones that 
10.35 	limit soil erosion and chemicals from entering 
11.1 	the water ditch systems and waterways of 
11.2 	the Lake Titlow watershed. These water 
11.3 	control devices must be provided at low 
11.4 	cost to landowners to promote conservation 
11.5 	improvement and clean up groundwater. 
11.6 	Volunteers from the city of Gaylord and local 
11.7 	clubs and high school students must be used 
11.8 	to install the water control devices at no cost 
11.9 	to the landowner.
11.10 	The criteria, limitations, and assessment 
11.11 	requirements in Minnesota Statutes, sections 
11.12 	103D.701, 103D.705, and 103D.901 do not 
11.13 	apply to this subdivision.

11.14
11.15	Sec. 8. MINNESOTA ZOOLOGICAL 
GARDEN
 			$
	1,526,000

11.16	Inflow and infiltration emergency abatement
 					
11.17 	This appropriation is from the general fund to 
11.18 	the Minnesota Zoological Garden to design 
11.19 	and construct improvements to its water 
11.20 	management system. The project must be 
11.21 	designed to address inflow and infiltration 
11.22 	problems associated with the Minnesota 
11.23 	Zoo's water discharge flow to the city of 
11.24 	Eagan.

11.25	Sec. 9. ADMINISTRATION

11.26	Subdivision 1.Total Appropriation
 			$
	15,240,000
	
11.27 	To the commissioner of administration for 
11.28 	the purposes specified in this section.

11.29
11.30	Subd. 2.Exterior Repair of Transportation 
Building
 				12,715,000
	
11.31 	This appropriation is from the bond proceeds 
11.32 	account in the trunk highway fund to repair 
11.33 	and renovate the exterior of the Department 
12.1 	of Transportation Building at 395 John 
12.2 	Ireland Boulevard in St. Paul.

12.3	Subd. 3.Property Acquisition
 				2,325,000
	
12.4 	This appropriation is from the general fund 
12.5 	to acquire property at 639 Jackson Street in 
12.6 	St. Paul adjacent to the Harold E. Stassen 
12.7 	Building, to demolish existing structures 
12.8 	on the property, and to develop temporary 
12.9 	parking on the site and adjacent areas.

12.10	Subd. 4.Veterans Memorial, Eden Prairie
 				200,000
	
12.11 	This appropriation is from the general fund 
12.12 	for a grant to the city of Eden Prairie to 
12.13 	design and construct improvements of a 
12.14 	capital nature for a veterans memorial in 
12.15 	Purgatory Creek Recreation Area in the city 
12.16 	of Eden Prairie.

12.17	Sec. 10. PUBLIC SAFETY

12.18	Subdivision 1.Total Appropriation
 			$
	7,550,000
	
12.19 	To the commissioner of public safety for the 
12.20 	purposes specified in this section.
12.21 	The appropriations in this section are from 
12.22 	the general fund.

12.23
12.24	Subd. 2.Anoka County Forensic Crime 
Laboratory
 				2,500,000
	
12.25 	Notwithstanding any law to the contrary, 
12.26 	this appropriation is for a grant to Anoka 
12.27 	County to design, construct, furnish, and 
12.28 	equip a regional forensic crime laboratory, 
12.29 	for the use of Anoka, Sherburne, and Wright 
12.30 	Counties, to be located in Anoka County.
12.31 	This appropriation is not available until the 
12.32 	commissioner has determined that at least 
12.33 	$7,500,000 has been committed or will be 
13.1 	committed from nonstate sources to the 
13.2 	forensic crime laboratory and/or a public 
13.3 	safety facility that will contain the forensic 
13.4 	crime laboratory.

13.5
13.6	Subd. 3.Gonvick Public Safety Training 
Center
 				50,000
	
13.7 	Notwithstanding any law to the contrary, for 
13.8 	a grant to the city of Gonvick to predesign a 
13.9 	regional emergency training administration 
13.10 	center in Gonvick.
13.11 	This appropriation is not available until the 
13.12 	commissioner has determined that at least 
13.13 	an equal amount has been committed from 
13.14 	nonstate sources.

13.15
13.16	Subd. 4.Scott County Public Safety Training 
Center
 				1,500,000
	
13.17 	Notwithstanding any law to the contrary, for 
13.18 	a grant to Scott County to design, construct, 
13.19 	furnish, and equip a regional public safety 
13.20 	training center in Scott County.
13.21 	This appropriation is not available until the 
13.22 	commissioner has determined that at least 
13.23 	an equal amount has been committed from 
13.24 	nonstate sources.

13.25
13.26	Subd. 5.Southeastern Minnesota Regional 
Public Safety Training Center
 				1,500,000
	
13.27 	Notwithstanding any law to the contrary, 
13.28 	to design, construct, furnish, and equip the 
13.29 	Southeastern Minnesota Regional Public 
13.30 	Safety Training Center in Rochester. The 
13.31 	facility must include a live burn training 
13.32 	simulator, a driving range, and a weapons 
13.33 	training facility.
13.34 	This appropriation is not available until the 
13.35 	commissioner has determined that at least 
14.1 	an equal amount has been committed from 
14.2 	nonstate sources.

14.3	Subd. 6.Browns Valley Flood Relief
 				2,000,000
	
14.4 	For a grant to the city of Browns Valley to be 
14.5 	used to mitigate damage to public and private 
14.6 	property caused by the flooding of March 
14.7 	2007. Grant money may be used to repair, 
14.8 	buy, or replace private property damaged by 
14.9 	flooding.

14.10	Sec. 11. TRANSPORTATION

14.11	Subdivision 1.Total Appropriation
 			$
	53,673,000
	
14.12 	To the commissioner of transportation for the 
14.13 	purposes specified in this section.

14.14
14.15	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				30,000,000
	
14.16 	This appropriation is from the bond proceeds 
14.17 	account in the state transportation fund as 
14.18 	provided in Minnesota Statutes, section 
14.19 	174.50, to match federal money and to 
14.20 	replace or rehabilitate local deficient bridges.
14.21 	Political subdivisions may use grants made 
14.22 	under this section to construct or reconstruct 
14.23 	bridges, including:
14.24 	(1) matching federal aid grants to construct 
14.25 	or reconstruct key bridges;
14.26 	(2) paying the costs of preliminary 
14.27 	engineering and environmental studies 
14.28 	authorized under Minnesota Statutes, section 
14.29 	174.50, subdivision 6a;
14.30 	(3) paying the costs to abandon an existing 
14.31 	bridge that is deficient and in need of 
14.32 	replacement, but where no replacement will 
14.33 	be made; and
15.1 	(4) paying the costs to construct a road 
15.2 	or street to facilitate the abandonment 
15.3 	of an existing bridge determined by 
15.4 	the commissioner to be deficient, if the 
15.5 	commissioner determines that construction 
15.6 	of the road or street is more cost efficient 
15.7 	than the replacement of the existing bridge.

15.8	Subd. 3.Port Development Assistance
 				500,000
	
15.9 	This appropriation is from the general fund 
15.10 	for grants under Minnesota Statutes, chapter 
15.11 	457A. Any improvements made with the 
15.12 	proceeds of these grants must be publicly 
15.13 	owned.

15.14	Subd. 4.Mankato District Headquarters
 				20,673,000
	
15.15 	This appropriation is from the bond proceeds 
15.16 	account in the trunk highway fund to 
15.17 	design, construct, furnish, and equip a 
15.18 	new Department of Transportation district 
15.19 	headquarters facility in Mankato.

15.20	Subd. 5.High-Speed Rail Line
 				2,000,000
	
15.21 	This appropriation is from the general 
15.22 	fund for the state's share of a high-speed 
15.23 	rail line connecting Chicago, LaCrescent, 
15.24 	Winona, Red Wing, and the Union Depot 
15.25 	Concourse Multimodal Transit Hub, located 
15.26 	in downtown St. Paul in the area south 
15.27 	of Kellogg Boulevard and east of Jackson 
15.28 	Street. No part of this appropriation 
15.29 	may be spent to acquire or better capital 
15.30 	improvements that are located outside the 
15.31 	state of Minnesota, that may be used from 
15.32 	time to time outside the state of Minnesota, 
15.33 	or that are part of a rail corridor that is 
16.1 	not designated by the Midwest Interstate 
16.2 	Passenger Rail Compact.

16.3	Subd. 6.Commuter Rail Extension
 				250,000
	
16.4 	This appropriation is from the general 
16.5 	fund for a grant to the Northstar Corridor 
16.6 	Development Authority to fund advanced 
16.7 	preliminary engineering, updated 
16.8 	environmental documentation, property 
16.9 	appraisals, and negotiations with the railroad 
16.10 	to extend commuter rail service on the 
16.11 	Burlington Northern Santa Fe rail line 
16.12 	between Big Lake and Rice.

16.13
16.14	Subd. 7.North Shore Express Intercity Rail 
Initiative
 				250,000
	
16.15 	This appropriation is from the general 
16.16 	fund for a grant to St. Louis and Lake 
16.17 	County Regional Rail Authority for 
16.18 	railroad acquisition and track restoration, 
16.19 	environmental impact studies, advanced 
16.20 	corridor planning, preliminary design and 
16.21 	preliminary engineering, station design, 
16.22 	analysis of railroad capacity, and easement 
16.23 	costs for intercity and passenger rail service 
16.24 	between the city of Duluth and the cities of 
16.25 	Minneapolis and St. Paul.

16.26	Sec. 12. METROPOLITAN COUNCIL

16.27	Subdivision 1.Total Appropriation
 			$
	51,150,000
	
16.28 	To the Metropolitan Council for the purposes 
16.29 	specified in this section. The appropriations 
16.30 	in this section are from the general fund, 
16.31 	unless another fund is named.

16.32	Subd. 2.Central Corridor Transit Way
 				40,000,000
	
16.33 	This appropriation is from the bond proceeds 
16.34 	fund for preliminary engineering, preliminary 
17.1 	design, final design, and construction of 
17.2 	the central corridor transit way between 
17.3 	downtown Minneapolis and downtown St. 
17.4 	Paul, terminating in downtown St. Paul at 
17.5 	the Union Depot.
17.6 	This appropriation may not be spent for 
17.7 	capital improvements within a trunk highway 
17.8 	right-of-way.
17.9 	District heating and district cooling nonprofit 
17.10 	corporations organized under Minnesota 
17.11 	Statutes, chapter 317A, that are exempt 
17.12 	organizations under section 501(c)(3) of 
17.13 	the United States Internal Revenue Code 
17.14 	that are public right-of-way users under 
17.15 	Minnesota Rules, chapter 7819, are eligible 
17.16 	to receive grants and federal money for 
17.17 	costs of relocating facilities from public 
17.18 	rights-of-way to prevent interference with 
17.19 	public light rail projects.

17.20	Subd. 3.South St. Paul - Span Arch Bridge
 				600,000
	
17.21 	For a grant to the city of South St. Paul 
17.22 	to design and construct a span arch bridge 
17.23 	under 19th Avenue in South St. Paul for 
17.24 	connection with the Dakota County North 
17.25 	Urban Regional Trail.

17.26	Subd. 4.Union Depot
 				3,000,000
	
17.27 	$2,500,000 of this appropriation is from the 
17.28 	general fund.
17.29 	$500,000 of this appropriation is from the 
17.30 	bond proceeds fund.
17.31 	For a grant to the Ramsey County Regional 
17.32 	Railroad Authority to acquire land and 
17.33 	structures, to renovate structures, and for 
17.34 	design, engineering, and environmental 
18.1 	work to revitalize Union Depot for use as a 
18.2 	multimodal transit center in St. Paul.

18.3	Subd. 5.Rush Line Corridor Transit Way
 				500,000
	
18.4 	For a grant to the Ramsey County Regional 
18.5 	Railroad Authority to acquire land for, 
18.6 	design, and construct park-and-ride or 
18.7 	park-and-pool lots located along the Rush 
18.8 	Line Corridor along I-35E/I-35W and 
18.9 	Highway 61 from the Union Depot in 
18.10 	downtown St. Paul to Hinckley.

18.11	Subd. 6.Red Rock Corridor Transit Way
 				500,000
	
18.12 	To design, construct, and furnish 
18.13 	park-and-ride lots for the Red Rock 
18.14 	Corridor transit way between Hastings and 
18.15 	Minneapolis via St. Paul, and any extension 
18.16 	between Hastings and Red Wing.

18.17	Subd. 7.Southwest Corridor Transit Way
 				500,000
	
18.18 	For a grant to the Hennepin County 
18.19 	Regional Rail Authority to prepare a draft 
18.20 	environmental impact statement (DEIS) 
18.21 	and for preliminary engineering for the 
18.22 	Southwest Corridor Transit Way, from the 
18.23 	Hiawatha light rail in downtown Minneapolis 
18.24 	to the vicinity of the Southwest Station 
18.25 	transit hub in Eden Prairie.

18.26	Subd. 8.Transit Master Plan
 				250,000
	
18.27 	(a) The Metropolitan Council, in consultation 
18.28 	with the regional railroad authorities in the 
18.29 	metropolitan area, must complete a revision 
18.30 	of the regional master plan for transit. The 
18.31 	plan must identify recommended transit 
18.32 	investments in the metropolitan area through 
18.33 	2030. The revised plan must be completed 
18.34 	for presentation to the legislature by February 
19.1 	20, 2008. The plan must include an analysis 
19.2 	and comparison of transit way corridors 
19.3 	and the potential for bus and busway, light 
19.4 	rail transit, and commuter rail development 
19.5 	within the corridors based on current and 
19.6 	projected:
19.7 	(1) population and population density;
19.8 	(2) employment concentrations and job 
19.9 	density;
19.10 	(3) transit dependent segments of the 
19.11 	population;
19.12 	(4) ridership;
19.13 	(5) capital and operating costs:
19.14 	(6) land use;
19.15 	(7) right-of-way availability; and
19.16 	(8) adequacy of existing transportation 
19.17 	options within the corridor.
19.18 	The council and regional rail authorities must 
19.19 	jointly select the corridors to be included in 
19.20 	the analysis.
19.21 	(b) The plan must include, but is not limited 
19.22 	to, an analysis of the following corridors:
19.23 	(1) the I-94 corridor, beginning at the 
19.24 	Union Depot Concourse Multimodal 
19.25 	Transit Hub, located in downtown St. Paul 
19.26 	in the area south of Kellogg Boulevard 
19.27 	and east of Jackson Street, extending 
19.28 	eastward through Washington County 
19.29 	to the Minnesota-Wisconsin border, and 
19.30 	terminating in St. Croix County, Wisconsin; 
19.31 	and 
19.32 	(2) the I-494 corridor, on or near 
19.33 	marked Interstate Highway 494, from 
20.1 	Minneapolis-St. Paul International Airport to 
20.2 	a transit station on the proposed Southwest 
20.3 	Corridor transit way.

20.4
20.5	Subd. 9.Metropolitan Regional Parks Capital 
Improvements
 				5,800,000

20.6	Saint Paul - National Great River Park
					
20.7 	$3,800,000 is for a grant to the city of St. 
20.8 	Paul to design, construct, furnish, and equip 
20.9 	river park development and redevelopment 
20.10 	infrastructure in National Great River Park 
20.11 	along the Mississippi River in St. Paul. 

20.12	Fridley - Springbrook Nature Center
					
20.13 	$2,000,000 is from the general fund 
20.14 	for a grant to the city of Fridley to 
20.15 	predesign, design, construct, and equip 
20.16 	the redevelopment and expansion of 
20.17 	the Springbrook Nature Center. This 
20.18 	appropriation is not available until the 
20.19 	commissioner has determined that at least 
20.20 	an equal amount has been committed from 
20.21 	nonstate sources.

20.22	Sec. 13. HUMAN SERVICES
 			$
	150,000

20.23	West central secured treatment facility
 					
20.24 	This appropriation is from the general fund 
20.25 	to the commissioner of human services 
20.26 	for a grant to Pope County to predesign 
20.27 	a multicounty regional secured treatment 
20.28 	facility in west central Minnesota. The 
20.29 	commissioner shall prepare a report to the 
20.30 	legislature assessing the need for and the 
20.31 	viability of the facility and the benefits 
20.32 	derived from a coordinated multicounty, 
20.33 	regional approach to local chemical 
20.34 	dependency needs in west central Minnesota. 
21.1 	The report is due to the legislature by 
21.2 	February 1, 2008.

21.3	Sec. 14. CORRECTIONS

21.4	Subdivision 1.Total Appropriation
 			$
	6,117,000
	
21.5 	To the commissioner of administration for 
21.6 	the purposes specified in this section. The 
21.7 	appropriations in this section are from the 
21.8 	general fund.

21.921.10
	Subd. 2.Minnesota Correctional Facility - Oak 
Park Heights

21.11	(a) Perimeter system renovation
				3,875,000
	
21.12 	To renovate the perimeter system at the 
21.13 	Oak Park Heights Correctional Facility 
21.14 	by replacing the security fence system for 
21.15 	the inside wall of the main prison yard 
21.16 	and exterior fence, replacing the perimeter 
21.17 	lighting system and the security razor 
21.18 	ribbon, and installing cameras and lighting to 
21.19 	correspond to the perimeter system's added 
21.20 	security zones.

21.21	(b) Ventilation system renovation
				2,242,000
	
21.22 	To renovate the ventilation system at the 
21.23 	Oak Park Heights Correctional Facility by 
21.24 	demolishing sections of existing ductwork, 
21.25 	installing new ductwork, installing an 
21.26 	ultraviolet lighting system, installing system 
21.27 	air controls and electronics, and cleaning 
21.28 	or otherwise renovating sections of existing 
21.29 	ductwork.

21.30
21.31	Sec. 15. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

21.32	Subdivision 1.Total Appropriation
 			$
	82,150,000
	
22.1 	To the commissioner of employment and 
22.2 	economic development or other named 
22.3 	agency for the purposes specified in this 
22.4 	section.

22.5	Subd. 2.Bayport Storm Sewer
 				150,000
	
22.6 	To the Public Facilities Authority for a grant 
22.7 	to the city of Bayport for the Middle St. Croix 
22.8 	River Watershed Management Organization 
22.9 	to complete construction documents and 
22.10 	bidding for the sewer system extending from 
22.11 	Minnesota Department of Natural Resources 
22.12 	pond 82-310P (the prison pond) in Bayport 
22.13 	through the Stillwater prison grounds to the 
22.14 	St. Croix River.
22.15 	This appropriation is in addition to the 
22.16 	appropriations in Laws 2000, chapter 492, 
22.17 	article 1, section 21, subdivision 8, to 
22.18 	the commissioner of corrections and in 
22.19 	Laws 2005, chapter 20, article 1, section 
22.20 	23, subdivision 3, to the Public Facilities 
22.21 	Authority, for the same project.

22.22	Subd. 3.DECC Arena
 				37,000,000
	
22.23 	This appropriation is from the general fund 
22.24 	for a grant to the Duluth Entertainment 
22.25 	and Convention Center Authority to 
22.26 	design, construct, furnish, and equip capital 
22.27 	improvements and renovations to the Duluth 
22.28 	Entertainment and Convention Center. The 
22.29 	capital improvements and renovations must 
22.30 	include an approximately 217,446 square 
22.31 	foot arena with an ice sheet of at least 200 
22.32 	feet by 85 feet; trade show and concert space; 
22.33 	seating capacity of at least 6,630 with suites, 
22.34 	club seats, and concessions; state-of-the-art 
22.35 	locker and training facilities; and accessible 
23.1 	and expanded media space. Notwithstanding 
23.2 	any law to the contrary, the authority may 
23.3 	adopt a design and construction procurement 
23.4 	process as determined by the authority, in 
23.5 	its discretion, to be in the public interest in 
23.6 	connection with the Duluth Entertainment 
23.7 	and Convention Center improvements.

23.8
23.9	Subd. 4.Itasca County - Steel Plant 
Infrastructure
 				30,000,000
	
23.10 	This appropriation is from the general 
23.11 	fund and is in addition to the appropriation 
23.12 	in Laws 2006, chapter 258, section 21, 
23.13 	subdivision 14.
23.14 	For a grant to Itasca County for public 
23.15 	infrastructure needed to support a steel plant 
23.16 	in Itasca County. Grant money may be used 
23.17 	by Itasca County to acquire right-of-way and 
23.18 	mitigate loss of wetlands and runoff of storm 
23.19 	water, to predesign, design, construct, and 
23.20 	equip roads and rail lines, and, in cooperation 
23.21 	with municipal public utilities, to predesign, 
23.22 	design, construct, and equip natural gas 
23.23 	pipelines, electric infrastructure, water 
23.24 	supply systems, and wastewater collection 
23.25 	and treatment systems. 

23.26
23.27	Subd. 5.Rochester - Mayo Civic Center 
Complex
 				2,500,000
	
23.28 	This appropriation is from the general fund 
23.29 	for a grant to the city of Rochester to design 
23.30 	the renovation and expansion of the Mayo 
23.31 	Civic Center Complex.

23.32	Subd. 6.Wildlife Rehabilitation Center
 				500,000
	
23.33 	This appropriation is from the general fund 
23.34 	for a grant to the Wildlife Rehabilitation 
23.35 	Center of Minnesota to retire loans incurred 
24.1 	by the center for construction of its facility in 
24.2 	the city of Roseville, and for completion of 
24.3 	educational technology infrastructure at the 
24.4 	center.

24.5	Subd. 7.Rice Street Bridge
 				2,000,000
	
24.6 	This appropriation is from the general 
24.7 	fund for a grant to Ramsey County for 
24.8 	the preliminary planning, design, and 
24.9 	engineering of the Rice Street bridge where 
24.10 	it crosses marked Trunk Highway 36 in 
24.11 	Ramsey County.

24.12
24.13	Subd. 8.St. Cloud State University - National 
Hockey Center
 				10,000,000
	
24.14 	This appropriation is from the general fund 
24.15 	to the Board of Trustees of the Minnesota 
24.16 	State Colleges and Universities to predesign, 
24.17 	design, construct, furnish, and equip the 
24.18 	renovation of the National Hockey Center.

24.19	Sec. 16. HOUSING FINANCE AGENCY

24.20	Browns Valley flooding
 					
24.21 	The Housing Finance Agency may use 
24.22 	the disaster relief contingency fund 
24.23 	established under Minnesota Statutes, section 
24.24 	462A.21, subdivision 29, to assist with the 
24.25 	rehabilitation or replacement of housing 
24.26 	damaged as a result of the Browns Valley 
24.27 	flooding of March 2007, notwithstanding 
24.28 	that the area is not included in a presidential 
24.29 	declaration of major disaster.

24.30	Sec. 17. BOND SALE EXPENSES
 			$
	167,000
	
24.31 	To the commissioner of finance for bond sale 
24.32 	expenses under Minnesota Statutes, section 
24.33 	16A.641, subdivision 8. Of this amount, 
25.1 	$32,000 is from the bond proceeds account 
25.2 	in the trunk highway fund.

25.3	Sec. 18. BOND SALE SCHEDULE
 					
25.4 	The commissioner of finance shall schedule 
25.5 	the sale of state general obligation bonds so 
25.6 	that, during the biennium ending June 30, 
25.7 	2009, no more than $918,620,000 will need 
25.8 	to be transferred from the general fund to the 
25.9 	state bond fund to pay principal and interest 
25.10 	due and to become due on outstanding 
25.11 	state general obligation bonds. During 
25.12 	the biennium, before each sale of state 
25.13 	general obligation bonds, the commissioner 
25.14 	of finance shall calculate the amount of 
25.15 	debt service payments needed on bonds 
25.16 	previously issued and shall estimate the 
25.17 	amount of debt service payments that will 
25.18 	be needed on the bonds scheduled to be 
25.19 	sold. The commissioner shall adjust the 
25.20 	amount of bonds scheduled to be sold so as 
25.21 	to remain within the limit set by this section. 
25.22 	The amount needed to make the debt service 
25.23 	payments is appropriated from the general 
25.24 	fund as provided in Minnesota Statutes, 
25.25 	section 16A.641.

25.26 	Sec. 19. BOND SALE AUTHORIZATION.
 25.27 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act 
25.28 	from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the 
25.29 	state in an amount up to $111,705,000 in the manner, upon the terms, and with the effect 
25.30 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
25.31 	Constitution, article XI, sections 4 to 7.
25.32 		Subd. 2.Transportation fund bond proceeds account. To provide the money 
25.33 	appropriated in this article from the state transportation fund, the commissioner of finance 
25.34 	shall sell and issue bonds of the state in an amount up to $30,000,000 in the manner, upon 
26.1 	the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 
26.2 	16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of 
26.3 	the bonds, except accrued interest and any premium received on the sale of the bonds, 
26.4 	must be credited to a bond proceeds account in the state transportation fund.
26.5 		Subd. 3.Trunk highway bonds. To provide the money appropriated in this article 
26.6 	from the bond proceeds account in the trunk highway fund, the commissioner of finance 
26.7 	shall sell and issue trunk highway bonds in an amount up to $33,420,000 in the manner, on 
26.8 	the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, 
26.9 	and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts 
26.10 	requested by the commissioner of transportation. The proceeds of the bonds, except 
26.11 	accrued interest and any premium received on the sale of the bonds, must be credited to 
26.12 	the bond proceeds account in the trunk highway fund.

26.13 	Sec. 20. BOND SALE AUTHORIZATION REDUCTIONS.
 26.14 	The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, 
26.15 	subdivision 1, is reduced by $2,000,000.
26.16 	The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is 
26.17 	reduced by $3,432,000.

26.18 	Sec. 21. Minnesota Statutes 2006, section 85.013, is amended by adding a subdivision 
26.19 	to read:
26.20 		Subd. 11b. Greenleaf Lake State Recreation Area, which is hereby renamed from 
26.21 	Greenleaf Lake State Park.

26.22 	Sec. 22. Minnesota Statutes 2006, section 116R.01, subdivision 6, is amended to read:
26.23 		Subd. 6.Project. "Project" means the facilities or any property described in section 
26.24 	116R.02, subdivision 5or 6, as applicable. 

26.25 	Sec. 23. Minnesota Statutes 2006, section 116R.02, subdivision 1, is amended to read:
26.26 		Subdivision 1.Sale authorization. The commissioner of finance, upon the request 
26.27 	of the governor, may issue and sell revenue bonds as provided under sections 116R.01 to 
26.28 	116R.16116R.15 in one or more series or issues for the purposes provided in this section 
26.29 	in the aggregate principal amount of up to $350,000,000, except for refunding bonds. 
26.30 	Proceeds of the bonds and investment income on the proceeds are appropriated in the 
26.31 	amounts and for the purposes specified in subdivisions 2,and 5, and 6 and section 116R.04. 

27.1 	Sec. 24. Minnesota Statutes 2006, section 116R.02, subdivision 2, is amended to read:
27.2 		Subd. 2.Loan, lease, and revenue agreements. (a) The commissioner may loan 
27.3 	the proceeds of the bonds, make other loans or enter into lease agreements or other 
27.4 	revenue agreements for the projectsproject described in subdivisions 5 and 6 subdivision 
27.5 	5. The commissioner may provide for servicing of the loans and agreements, the times 
27.6 	they are payable and the amounts of payments, the amount of the loans and agreements, 
27.7 	their security, and other terms, conditions, and provisions necessary or convenient in 
27.8 	connection with them and may enter into all necessary contracts and security instruments 
27.9 	in connection with them. The commissioner shall seek to obtain the best available terms 
27.10 	and security for the loans or agreements. The terms and security must be reasonably 
27.11 	determined by the commissioner to be adequate and of the kind and degree which would 
27.12 	be required by an investment banking or other financial institution. The facilities described 
27.13 	in subdivisions 5 and 6subdivision 5 must be pledged as collateral for the loans made and 
27.14 	bonds issued under sections 116R.01 to 116R.16 116R.15. 
27.15 	(b) To reduce the risk that state general funds will be needed to pay debt service on 
27.16 	the state guaranteed bonds, the commissioner must require that the financing arrangements 
27.17 	include a coverage test satisfactory to the commissioner so that the sum of the value of the 
27.18 	assets and other security pledged to the payment of bonds or the rent due under any lease 
27.19 	of the project and taken into account by the commissioner is no less than 125 percent of 
27.20 	the difference between the outstanding state guaranteed bonds, and any cash collateral 
27.21 	held in a debt service reserve account and pledged to the payment of principal and interest 
27.22 	for the state guaranteed bonds and no other bonds. Assets and other security that may be 
27.23 	taken into account include (1) net unencumbered value of the project and any collateral 
27.24 	or third party guaranty, including a letter of credit, pledged or otherwise furnished by a 
27.25 	user of the project or by a benefited airline company as security for the payment of rent, 
27.26 	(2) bond proceeds, including earnings thereon, and (3) prepayments of rent, after making 
27.27 	such adjustments the commissioner determines to be appropriate to take into account 
27.28 	any outstanding bonds secured by a lien on the project or rent that is prior to the lien 
27.29 	securing the state guaranteed bonds, but excluding any cash collateral deducted from the 
27.30 	outstanding state guaranteed bonds in applying the coverage test. The commissioner may 
27.31 	adopt the method of valuing the assets and other security as the commissioner determines 
27.32 	to be appropriate, including valuation of the project at its original cost less depreciation.

27.33 	Sec. 25. Minnesota Statutes 2006, section 116R.02, subdivision 4, is amended to read:
27.34 		Subd. 4.Security. (a) If so provided in the commissioner's order or any indenture 
27.35 	authorizing the applicable series of bonds, up to $125,000,000 principal amount of bonds 
28.1 	for the facility described in subdivision 5, up to $50,000,000 principal amount of bonds 
28.2 	for the facility described in subdivision 6, and any bonds issued to refund these bonds may 
28.3 	be secured by either of the following methods:
28.4 	(1) upon the occurrence of any deficiency in a debt service reserve fund for a series 
28.5 	of bonds as provided in section 116R.13, subdivision 3, the commissioner shall issue and 
28.6 	sell deficiency bonds in a principal amount not to exceed (i) $125,000,000 for facilities 
28.7 	described in subdivision 5 and (ii) $50,000,000 for the facilities described in subdivision 
28.8 	6; or 
28.9 	(2) the bonds may be directly secured by a pledge of the full faith, credit, and taxing 
28.10 	power of the state and issued as general obligation revenue bonds of the state in accordance 
28.11 	with the Minnesota Constitution, article XI, sections 4 to 7. In no event may the security 
28.12 	provided by this paragraph extend in whole or part to any series of bonds other than the 
28.13 	initial series of bonds so secured and any series of bonds issued to refund these bonds.
28.14 	Deficiency bonds and bonds issued under clause (2) must be issued in accordance 
28.15 	with and subject to sections 16A.641, 16A.66, 16A.672, and 16A.675, except for section 
28.16 	16A.641, subdivision 5, except as otherwise provided in Laws 1991, chapter 350, article 
28.17 	1, and except that the bonds may be sold at public or private sale at a price or prices 
28.18 	determined by the commissioner as provided in section 116R.13, subdivision 3. 
28.19 	(b) The commissioner may request St. Louis County to pay or secure payment of 
28.20 	principal and interest due on up to $12,600,000 principal amount of revenue bonds for the 
28.21 	facility described in subdivision 5 and principal and interest due on up to $15,000,000 
28.22 	principal amount of revenue bonds for the facility described in subdivision 6. At the 
28.23 	request of the commissioner, St. Louis County shall, by resolution of its county board, 
28.24 	unconditionally and irrevocably pledge as a general obligation, its full faith, credit, and 
28.25 	taxing power to pay or secure payment of principal and interest due on the principal 
28.26 	amount or amounts requested by the commissioner. The general obligation and pledge of 
28.27 	St. Louis County are not subject to and shall not be taken into account for purposes of any 
28.28 	debt limitation. A levy of taxes for the St. Louis County general obligation is not subject 
28.29 	to and shall not be taken into account for purposes of any levy limitations. The general 
28.30 	obligation and the bonds secured by the general obligation may be issued without an 
28.31 	election. Except for sections 475.61 and 475.64, chapter 475 does not apply to the general 
28.32 	obligation or to the bonds secured by the general obligation. 
28.33 	(c) The commissioner may request the city of Duluth to pay or secure payment of 
28.34 	principal and interest due on up to $47,600,000 principal amount of revenue bonds for the 
28.35 	facility described in subdivision 5. At the request of the commissioner, the city of Duluth 
28.36 	shall pledge specified revenues of the city, as provided in Laws 1991, chapter 350, article 
29.1 	1, section 24, to pay principal and interest due on the principal amount requested by 
29.2 	the commissioner.
29.3 	(d) Bonds and deficiency bonds issued under sections 116R.01 to 116R.16116R.15 
29.4 	and any indenture entered into in connection with the issuance of the bonds are not subject 
29.5 	to section 16B.06.

29.6 	Sec. 26. Minnesota Statutes 2006, section 116R.02, subdivision 5, is amended to read:
29.7 		Subd. 5.Use of proceeds; aircraft maintenance facility. The proceeds of the 
29.8 	bonds issued in a principal amount not to exceed $250,000,000 may be used to finance 
29.9 	the costs related to the planning, construction, improvement, or equipping of a heavy 
29.10 	maintenance facility for aircraft and facilities subordinate and related to the facility to be 
29.11 	located at the Duluth International Airport and any costs of issuance, reserves, credit 
29.12 	enhancement, or an initial period of interest payments related to the bonds or the facility. 
29.13 	The bond proceeds are appropriated to the commissioner for the purposes specified in this 
29.14 	subdivision. The facility may be owned by the Metropolitan Airports Commission and 
29.15 	leased for the benefit of one or more airline companies for use as a heavy maintenance 
29.16 	base. With the approval of the commissioner, the owner of the facility may place a 
29.17 	mortgage or security interest lien on the facility or any interest in or part of the facility. 
29.18 	The mortgage is exempt from the mortgage registry tax imposed under chapter 287. In 
29.19 	the event of a default under the loan, lease agreement, or other revenue agreement, the 
29.20 	facility, or any part of the facility, may be leased or sold to another person for any lawful 
29.21 	purpose, subject to the approval of the commissioner. The approval of the commissioner 
29.22 	is not required if the bond trustee has taken control of the facility as a result of a default.
29.23 	The ownership of the facility by the owner may create no liability of the owner for 
29.24 	payment of the debt service on the bonds if so determined by the commissioner. The 
29.25 	owner may require as a condition of entering into the lease of the facility that the lessee or 
29.26 	other party pay all costs, expenses, or any other obligations of ownership of the facility.
29.27 	No revenues derived from the lease of the project may be used other than for a 
29.28 	purpose related to the project, including its operation, administration, maintenance, 
29.29 	improvement, or financing.

29.30 	Sec. 27. Minnesota Statutes 2006, section 116R.03, is amended to read:
29.31 	116R.03 GENERAL POWERS.
29.32 	For the purpose of exercising the specific powers authorized under sections 116R.01
29.33 	to 116R.16116R.15 and effectuating the other purposes of sections 116R.01 to 116R.16,
29.34 	116R.15, the commissioner may: 
30.1 	(1) acquire, hold, pledge, assign, lease, or dispose of real or personal property or 
30.2 	any interest in property, including a mortgage or security interest in a facility described in 
30.3 	section 116R.02, subdivision 5or 6; 
30.4 	(2) enter into agreements, contracts, or other transactions with any federal or state 
30.5 	agency, any person and any domestic or foreign partnership, corporation, association, or 
30.6 	organization, including contracts or agreements for administration and implementation of 
30.7 	all or part of sections 116R.01 to 116R.16 116R.15; 
30.8 	(3) acquire real property, or an interest therein, by purchase or foreclosure, where 
30.9 	the acquisition is necessary or appropriate;
30.10 	(4) enter into agreements with lenders, borrowers, or the issuers of securities for the 
30.11 	purpose of regulating the development and management of any facility financed in whole 
30.12 	or in part by the proceeds of bonds or loans;
30.13 	(5) enter into agreements with other appropriate federal, state, or local governmental 
30.14 	units; and
30.15 	(6) contract with, use, or employ any federal, state, regional, or local public or 
30.16 	private agency or organization, legal counsel, financial advisors, investment bankers or 
30.17 	others, upon terms the commissioner considers necessary or desirable, to assist in the 
30.18 	exercise of any of the powers authorized under sections 116R.01 to 116R.16 116R.15 and 
30.19 	to carry out the objectives of sections 116R.01 to 116R.16 116R.15 and may pay for the 
30.20 	services from bond proceeds or otherwise available department money.; and
30.21 	(7) in the event of a default under the loan, lease agreement, or other revenue 
30.22 	agreement, the facility, or any part of the facility, may be leased or sold to another person 
30.23 	for any lawful purpose, subject to the approval of the commissioner. The approval of the 
30.24 	commissioner is not required if the bond trustee has taken control of the facility as a 
30.25 	result of a default.

30.26 	Sec. 28. Minnesota Statutes 2006, section 116R.05, subdivision 2, is amended to read:
30.27 		Subd. 2.Sources of payment. Except as otherwise provided for bonds issued 
30.28 	under section 116R.02, subdivision 4, paragraph (a), the bonds and interest payable 
30.29 	thereon are payable solely from the following sources and are irrevocably appropriated 
30.30 	for that purpose, but only to the extent provided in the order or indenture authorizing or 
30.31 	securing the bonds: 
30.32 	(1) revenues of any nature derived from the ownership, lease, operation, sale, 
30.33 	foreclosure, or refinancing of a project described in section 116R.02, subdivision 5or 6; 
30.34 	(2) repayments of any loans made under sections 116R.01 to 116R.16 116R.15; 
30.35 	(3) proceeds of any bonds or deficiency bonds;
31.1 	(4) amounts in any account or accounts authorized by section 116R.11 or 116R.12; 
31.2 	(5) amounts paid by St. Louis County under its obligations referred to in section 
31.3 	116R.02, subdivision 4, and amounts paid under Laws 1991, chapter 350, article 1, section 
31.4 	24 or 25, for the payment of bonds or interest thereon; 
31.5 	(6) amounts payable under any insurance policy, guaranty, letter of credit, or other 
31.6 	instrument securing the bonds;
31.7 	(7) any other revenues which the commissioner may pledge but excluding state 
31.8 	appropriations unless the appropriation was specifically designated for that purpose; and
31.9 	(8) investment income on any of the sources specified in clauses (1) to (7).

31.10 	Sec. 29. Minnesota Statutes 2006, section 116R.11, subdivision 1, is amended to read:
31.11 		Subdivision 1.Funds. The commissioner or any trustee appointed by the 
31.12 	commissioner under sections 116R.01 to 116R.16116R.15 shall establish and maintain an 
31.13 	aircraft facilities fund for each of the projectsthe project described in section 116R.02, 
31.14 	subdivisions 5 and 6 subdivision 5. Except for amounts required by the commissioner to 
31.15 	be deposited in a debt service account, proceeds of each issue of bonds authorized under 
31.16 	section 116R.02, subdivision 1, must be deposited in a separate account, debt service 
31.17 	reserve, or other account designated by the commissioner. Money in the account is 
31.18 	appropriated to the commissioner. The commissioner or the owner of eachthe project 
31.19 	described in section 116R.02, subdivisions 5 and 6 subdivision 5, may withdraw proceeds 
31.20 	of bonds for application to the appropriated purposes in the manner provided by order 
31.21 	of the commissioner or in any indenture authorized by order of the commissioner. The 
31.22 	commissioner may establish whatever accounts might be necessary to carry out sections 
31.23 	116R.01 to 116R.16 116R.15. All deposits into and disbursements from accounts for the 
31.24 	purposes and from the sources of revenue authorized by sections 116R.01 to 116R.16
31.25 	116R.15 and provided in an order of the commissioner or an indenture or other agreement 
31.26 	authorized by the commissioner are appropriated for that purpose.

31.27 	Sec. 30. Minnesota Statutes 2006, section 116R.12, is amended by adding a subdivision 
31.28 	to read:
31.29 		Subd. 4.Approval. The approval of the commissioner is not required if the bond 
31.30 	trustee has taken control of the facility as a result of a default.

31.31 	Sec. 31. Minnesota Statutes 2006, section 272.01, subdivision 2, is amended to read:
31.32 		Subd. 2.Exempt property used by private entity for profit. (a) When any real or 
31.33 	personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is 
32.1 	leased, loaned, or otherwise made available and used by a private individual, association, 
32.2 	or corporation in connection with a business conducted for profit, there shall be imposed a 
32.3 	tax, for the privilege of so using or possessing such real or personal property, in the same 
32.4 	amount and to the same extent as though the lessee or user was the owner of such property.
32.5 	(b) The tax imposed by this subdivision shall not apply to:
32.6 	(1) property leased or used as a concession in or relative to the use in whole 
32.7 	or part of a public park, market, fairgrounds, port authority, economic development 
32.8 	authority established under chapter 469, municipal auditorium, municipal parking facility, 
32.9 	municipal museum, or municipal stadium;
32.10 	(2) property of an airport owned by a city, town, county, or group thereof which is:
32.11 	(i) leased to or used by any person or entity including a fixed base operator; and
32.12 	(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, 
32.13 	services, or facilities to the airport or general public;
32.14 	the exception from taxation provided in this clause does not apply to:
32.15 	(i) property located at an airport owned or operated by the Metropolitan Airports 
32.16 	Commission or by a city of over 50,000 population according to the most recent federal 
32.17 	census or such a city's airport authority; or
32.18 	(ii) hangars leased by a private individual, association, or corporation in connection 
32.19 	with a business conducted for profit other than an aviation-related business; or
32.20 	(iii) facilities leased by a private individual, association, or corporation in connection 
32.21 	with a business for profit, that consists of a major jet engine repair facility financed, in 
32.22 	whole or part, with the proceeds of state bonds and located in a tax increment financing 
32.23 	district;
32.24 	(3) property constituting or used as a public pedestrian ramp or concourse in 
32.25 	connection with a public airport;
32.26 	(4) property constituting or used as a passenger check-in area or ticket sale counter, 
32.27 	boarding area, or luggage claim area in connection with a public airport but not the 
32.28 	airports owned or operated by the Metropolitan Airports Commission or cities of over 
32.29 	50,000 population or an airport authority therein. Real estate owned by a municipality 
32.30 	in connection with the operation of a public airport and leased or used for agricultural 
32.31 	purposes is not exempt;
32.32 	(5) property leased, loaned, or otherwise made available to a private individual, 
32.33 	corporation, or association under a cooperative farming agreement made pursuant to 
32.34 	section 97A.135; or
32.35 	(6) property leased, loaned, or otherwise made available to a private individual, 
32.36 	corporation, or association under section 272.68, subdivision 4.
33.1 	(c) Taxes imposed by this subdivision are payable as in the case of personal property 
33.2 	taxes and shall be assessed to the lessees or users of real or personal property in the same 
33.3 	manner as taxes assessed to owners of real or personal property, except that such taxes 
33.4 	shall not become a lien against the property. When due, the taxes shall constitute a debt 
33.5 	due from the lessee or user to the state, township, city, county, and school district for 
33.6 	which the taxes were assessed and shall be collected in the same manner as personal 
33.7 	property taxes. If property subject to the tax imposed by this subdivision is leased or used 
33.8 	jointly by two or more persons, each lessee or user shall be jointly and severally liable for 
33.9 	payment of the tax.
33.10 	(d) The tax on real property of the state or any of its political subdivisions that is 
33.11 	leased by a private individual, association, or corporation and becomes taxable under 
33.12 	this subdivision or other provision of law must be assessed and collected as a personal 
33.13 	property assessment. The taxes do not become a lien against the real property.

33.14 	Sec. 32. Minnesota Statutes 2006, section 290.06, subdivision 24, is amended to read:
33.15 		Subd. 24.Credit for job creation. (a) A corporation that leases and operates 
33.16 	a heavy maintenance base for aircraft that is owned by the state of Minnesota or one 
33.17 	of its political subdivisions, or an engine repair facility described in section 116R.02, 
33.18 	subdivision 6, or both, may take a credit against the tax due under this chapter. 
33.19 	(b) For the first taxable year when the facility has been in operation for at least three 
33.20 	consecutive months, the credit is equal to $5,000 multiplied by the number of persons 
33.21 	employed by the corporation on a full-time basis at the facility on the last day of the taxable 
33.22 	year, not to exceed the number of persons employed by the corporation on a full-time basis 
33.23 	at the facility on the date 90 days before the last day of the taxable year. For each of the 
33.24 	succeeding four taxable years, the credit is equal to $5,000 multiplied by the number of 
33.25 	persons employed by the corporation on a full-time basis at the facility on the last day of 
33.26 	the taxable year, not to exceed the number of persons employed by the corporation on a 
33.27 	full-time basis at the facility on the date 90 days before the last day of the taxable year.
33.28 	(c) For the first taxable year in which the credit is allowed for the facility, the credit 
33.29 	must not exceed 80 percent of the wages paid to or incurred for persons employed by the 
33.30 	taxpayer at the facility during the taxable year. For the succeeding four taxable years, the 
33.31 	credit must not exceed 20 percent of the wages paid to or incurred for persons employed 
33.32 	by the taxpayer at the facility during the taxable year. For purposes of this section, 
33.33 	"wages" has the meaning given under section 3121(b) of the Internal Revenue Code, 
33.34 	except the limitation to the contribution and benefit base does not apply.
34.1 	(d) If the credit provided under this subdivision exceeds the tax liability of the 
34.2 	corporation for the taxable year, the excess amount of the credit may be carried over to 
34.3 	each of the 20 taxable years succeeding the taxable year. The entire amount of the credit 
34.4 	must be carried to the earliest taxable year to which the amount may be carried. The 
34.5 	unused portion of the credit must be carried to the following taxable year. No credit 
34.6 	may be carried to a taxable year more than 20 years after the taxable year in which the 
34.7 	credit was earned.
34.8 	(e) If an unused portion of the credit remains at the end of the carryover period under 
34.9 	paragraph (d), the commissioner shall refund the unused portion to the taxpayer. The 
34.10 	provisions of this paragraph do not apply if the corporation that earned the credit under this 
34.11 	subdivision or a successor in interest to the corporation filed for bankruptcy protection.

34.12 	Sec. 33. Minnesota Statutes 2006, section 297A.71, subdivision 10, is amended to read:
34.13 		Subd. 10.Aircraft heavy maintenance facility. Materials, equipment, and supplies 
34.14 	used or consumed in constructing a heavy maintenance facility for aircraft that is to be 
34.15 	owned by the state of Minnesota or one of its political subdivisions and leased by an airline 
34.16 	company, or an aircraft engine repair facility described in section 116R.02, subdivision 
34.17 	6, areis exempt. Except for equipment owned or leased by a contractor, all machinery, 
34.18 	equipment, and tools necessary to the construction and equipping of that facility in order 
34.19 	to provide those services are also exempt. 

34.20 	Sec. 34. Minnesota Statutes 2006, section 360.013, subdivision 39, is amended to read:
34.21 		 Subd. 39.Airport. "Airport" means any area of land or water, except a restricted 
34.22 	landing area, which is designed for the landing and takeoff of aircraft, whether or not 
34.23 	facilities are provided for the shelter, surfacing, or repair of aircraft, or for receiving or 
34.24 	discharging passengers or cargo, and all appurtenant areas used or suitable for airport 
34.25 	buildings or other airport facilities, including facilities described in section 116R.02, 
34.26 	subdivision 6, and all appurtenant rights-of-way, whether heretofore or hereafter 
34.27 	established. The operation and maintenance of airports is an essential public service.

34.28 	Sec. 35. Minnesota Statutes 2006, section 360.032, subdivision 1, is amended to read:
34.29 		Subdivision 1.Acquisition. Every municipality is hereby authorized, through its 
34.30 	governing body, to acquire property, real or personal, for the purpose of establishing, 
34.31 	constructing, and enlarging airports and other air navigation facilities and to acquire, 
34.32 	establish, construct, enlarge, improve, maintain, equip, operate, and regulate such airports 
34.33 	and other air navigation facilities and structures and other property incidental to their 
35.1 	operation, either within or without the territorial limits of such municipality and within 
35.2 	or without this state; to make, prior to any such acquisition, investigations, surveys, and 
35.3 	plans; to construct, install, and maintain airport facilities for the servicing and repair of 
35.4 	aircraft and facilities authorized under section 116R.02, subdivision 6, and for the comfort 
35.5 	and accommodation of air travelers; and to purchase and sell equipment and supplies as 
35.6 	an incident to the operation of its airport properties. It may not acquire, or take over any 
35.7 	airport or other air navigation facility owned or controlled by any other municipality of 
35.8 	the state without the consent of such municipality. It may use for airport purposes any 
35.9 	available property that is now or may at any time hereafter be owned or controlled by it. 
35.10 	Such air navigation facilities as are established on airports shall be supplementary to and 
35.11 	coordinated in design and operation with those established and operated by the federal and 
35.12 	state governments. It may assist other municipalities in the construction of approach roads 
35.13 	leading to any airport or restricted landing area owned or controlled by it. In financing the 
35.14 	facilities authorized under section 116R.02, subdivision 6, it may borrow from the state 
35.15 	or otherwise arrange for financing of the facilities and for that purpose may exercise any 
35.16 	powers vested in a municipality under sections 469.152 to 469.165.

35.17 	Sec. 36. Minnesota Statutes 2006, section 360.038, subdivision 4, is amended to read:
35.18 		Subd. 4.Leased property. To lease for a term not exceeding 30 years such airports,
35.19 	or other air navigation facilities or facilities authorized under section 116R.02, subdivision 
35.20 	6, or real property acquired or set apart for airport purposes, to private parties, any 
35.21 	municipal or state government or the national government, or any department of either 
35.22 	thereof, for operation; to lease or assign for a term not exceeding 99 years to private 
35.23 	parties, any municipal or state government, or the national government, or any department 
35.24 	of either thereof, for operation or use consistent with the purposes of sections 360.011 to 
35.25 	360.076, space, area, improvements, or equipment on such airports; notwithstanding any 
35.26 	other provisions in this subdivision, to lease ground area for a term not exceeding 99 years 
35.27 	to private persons for the construction of structures which in its opinion are essential and 
35.28 	necessary to serve aircraft, persons, and things engaged in or incidental to aeronautics, 
35.29 	including but not limited to shops, hangars, offices, restaurants, hotels, motels, factories, 
35.30 	storage space, and any and all other structures necessary or essential to and consistent with 
35.31 	the purposes of sections 360.011 to 360.076, to sell any part of such airports, other air 
35.32 	navigation facilities, or real property to any municipal or state government, or to the 
35.33 	United States or any department or instrumentality thereof, for aeronautical purposes 
35.34 	incidental thereto, and to confer the privileges of concessions of supplying upon its 
36.1 	airports goods, commodities, things, services, and facilities; provided that in each case in 
36.2 	so doing the public is not deprived of its rightful, equal, and uniform use thereof. 

36.3 	Sec. 37. Laws 2005, chapter 20, article 1, section 7, subdivision 2, is amended to read:

36.4	Subd. 2.Flood Hazard Mitigation Grants
 				27,000,000
	
36.5 	For the state share of flood hazard 
36.6 	mitigation grants for publicly owned capital 
36.7 	improvements to prevent or alleviate flood 
36.8 	damage under Minnesota Statutes, section 
36.9 	103F.161.
36.10 	The commissioner shall determine project 
36.11 	priorities as appropriate based on need.
36.12 	This appropriation includes money for 
36.13 	the following projects: Ada, Austin, 
36.14 	Breckenridge, Browns Valley, Canisteo 
36.15 	Mine, Cannon Falls, Crookston, Dawson, 
36.16 	East Grand Forks, Grand Marais Creek, 
36.17 	Granite Falls, Green Meadow Dam, Inver 
36.18 	Grove Heights, Little McDonald Lake, 
36.19 	Malung, Manston Slough, Minneapolis, 
36.20 	Montevideo, Oakport, Palmville, Roseau 
36.21 	River, St. Louis Park, Two River Ross 
36.22 	Impoundment, Warren, and Whiskey Creek.
36.23 	$2,000,000 is for Austin for identified 
36.24 	capital improvement projects, and any 
36.25 	other authorized federal or state flood 
36.26 	mitigation projects in the area designated 
36.27 	under Presidential Declaration of Major 
36.28 	Disaster, DR-1569, whether included in the 
36.29 	original declaration or added later by federal 
36.30 	government action. The area currently 
36.31 	included in DR-1569 includes territory 
36.32 	within the counties of Dodge, Faribault, 
36.33 	Freeborn, Martin, Mower, Olmsted, and 
36.34 	Steele.
37.1 	$175,000 is for the state share of a grant to 
37.2 	the city of Cannon Falls for predesign and 
37.3 	design of capital improvements to alleviate 
37.4 	flooding caused by runoff from the bluffs and 
37.5 	the flooding of the Little Cannon River and 
37.6 	the Cannon River.
37.7 	For any project listed in this subdivision that 
37.8 	is not ready to proceed or does not expend all 
37.9 	the money allocated to it, the commissioner 
37.10 	may allocate that project's money to a project 
37.11 	on the commissioner's priority list.
37.12 	To the extent that the cost of a project in 
37.13 	Ada, Austin, Breckenridge, Browns Valley,
37.14 	Dawson, East Grand Forks, Granite Falls, 
37.15 	Montevideo, Oakport Township, Roseau, or 
37.16 	Warren exceeds two percent of the median 
37.17 	household income in the municipality 
37.18 	multiplied by the number of households in 
37.19 	the municipality, this appropriation is also 
37.20 	for the local share of the project.
37.21 	There is no local share required for the 
37.22 	Canisteo Mine project.
37.23 	For grants for Roseau River wildlife 
37.24 	management area, Palmville, and Malung, 
37.25 	the state share must be $3 for each $1 of 
37.26 	nonstate contribution.
37.27 	Notwithstanding the grant expiration date of 
37.28 	June 30, 2002, the commissioner of natural 
37.29 	resources shall extend until June 30, 2007, 
37.30 	the expiration date of a grant made to the 
37.31 	city of Stillwater under Minnesota Statutes, 
37.32 	section 103F.161, used to match certain 
37.33 	federal appropriations for flood hazard 
37.34 	mitigation.

38.1 	Sec. 38. Laws 2005, chapter 20, article 1, section 7, subdivision 21, is amended to read:

38.2
38.3	Subd. 21.State Park and Recreation Area 
Acquisition
 				2,500,000
	
38.4 	For acquisition of land under Minnesota 
38.5 	Statutes, section 86A.05, subdivisions 2 and 
38.6 	3, from willing sellers of private lands within 
38.7 	state park and recreation area boundaries 
38.8 	established by law.
38.9 	$500,000 is to purchase land within the 
38.10 	boundaries of Greenleaf Lake state park
38.11 	recreation area in Meeker county.

38.12 	Sec. 39. Laws 2005, chapter 20, article 1, section 17, is amended to read:

38.13	Sec. 17.PUBLIC SAFETY
 				642,000
	
38.14 	To the commissioner of public safety for 
38.15 	a grant to the Economic Development 
38.16 	Authority in and for the city of Blue Earth 
38.17 	to acquire land for and to predesign, design, 
38.18 	construct, furnish, and equip a fire and 
38.19 	police station. This appropriation is not 
38.20 	available until the commissioner of finance 
38.21 	has determined that at least an equal amount 
38.22 	has been committed to the project from 
38.23 	nonstate sources.

38.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

38.25 	Sec. 40. Laws 2005, chapter 20, article 1, section 20, subdivision 3, is amended to read:

38.26
38.27	Subd. 3.Systemwide Redevelopment, Reuse, 
or Demolition
 				17,600,000
	
38.28 	To demolish or improve surplus, 
38.29 	nonfunctional, or deteriorated facilities and 
38.30 	infrastructure at Department of Human 
38.31 	Services campuses statewide.
39.1 	(a) Up to $8,600,000 may be used to 
39.2 	predesign, design, construct, furnish, 
39.3 	and equip renovation of existing space 
39.4 	or construction of new space for skilled 
39.5 	nursing home capacity for forensic treatment 
39.6 	programs operated by state-operated services 
39.7 	on the campus of St. Peter Regional 
39.8 	Treatment Center.
39.9 	(b) $4,000,000 may be used to prepare 
39.10 	and develop a site, including demolition of 
39.11 	buildings and infrastructure, to implement 
39.12 	the redevelopment and reuse of the 
39.13 	Ah-Gwah-Ching Regional Treatment Center 
39.14 	campus. If the property is sold or transferred 
39.15 	to a local unit of government, the unspent 
39.16 	portion of this appropriation may be granted 
39.17 	to the local unit of government that acquires 
39.18 	the campus for the purposes stated in this 
39.19 	subdivision. Notwithstanding Minnesota 
39.20 	Statutes, section 16A.642, this appropriation 
39.21 	and its corresponding bond authorization do 
39.22 	not cancel until June 30, 2010.
39.23 	(c) $1,000,000 may be used to renovate one 
39.24 	or more buildings for chemical dependency 
39.25 	treatment specializing in methamphetamine 
39.26 	addiction, and demolish buildings, on the 
39.27 	Willmar Regional Treatment Center campus. 
39.28 	If the property is sold or transferred to a local 
39.29 	unit of government, the unspent portion of 
39.30 	this appropriation may be granted to the local 
39.31 	unit of government that acquires the campus 
39.32 	for the purposes stated in this subdivision.
39.33 	(d) Up to $2,210,000 may be spent by the 
39.34 	commissioner of finance to retire municipal 
39.35 	bonds issued by the city of Fergus Falls and 
40.1 	to retire interfund loans incurred by the city 
40.2 	of Fergus Falls in connection with the waste 
40.3 	incinerator and steam heating facility at the 
40.4 	Fergus Falls Regional Treatment Center.
40.5 	(e) Up to $400,000 may be used for a grant to 
40.6 	the city of Fergus Falls to demolish the city's 
40.7 	waste-to-energy incineration plant located 
40.8 	on the grounds of the Fergus Falls Regional 
40.9 	Treatment Center.
40.10 	(f) The provisions, terms, and conditions 
40.11 	of any grant made by the director of the 
40.12 	Office of Environmental Assistance under 
40.13 	Minnesota Statutes, chapter 115A, to the 
40.14 	city of Fergus Falls for the waste incinerator 
40.15 	steam heating facility that supports the 
40.16 	Fergus Falls Regional Treatment Center and 
40.17 	that may come into effect as a result of the 
40.18 	incinerator and facility being closed, are 
40.19 	hereby waived.

40.20 	Sec. 41. Laws 2005, chapter 20, article 1, section 21, subdivision 2, is amended to read:

40.21	Subd. 2.Asset Preservation
 				4,000,000
	
40.22 	For asset preservation improvements and 
40.23 	betterments of a capital nature at veterans 
40.24 	homes statewide to be spent in accordance 
40.25 	with Minnesota Statutes, section 16A.632.
40.26 	Up to $2,200,000 of federal money received 
40.27 	by the Minnesota Veterans Homes Board 
40.28 	of Directors as reimbursement for state 
40.29 	capital expenditures at the veterans homes 
40.30 	must be credited to the general fund and 
40.31 	is appropriated to the commissioner of 
40.32 	administration for asset preservationrepairs 
40.33 	and betterments at the homes in accordance 
40.34 	with Minnesota Statutes, section 16A.632.

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

41.2
41.3	Subd. 8.Lewis and Clark Rural Water System, 
Inc.
 				2,000,000
	
41.4 	This appropriation is from the general fund 
41.5 	to the Public Facilities Authority for grants 
41.6 	to the city of Luverne, city of Worthington 
41.7 	Public Utilities, Lincoln-Pipestone rural 
41.8 	water system, and Rock County rural water 
41.9 	systemLewis and Clark Joint Powers 
41.10 	Board to acquire land, predesign, design, 
41.11 	construct, furnish, and equip one or more
41.12 	water transmission and storage facilities to 
41.13 	accommodate the connection with of the 
41.14 	Lewis and Clark Rural Water System, Inc. 
41.15 	that will serve southwestern Minnesota.
41.16 	The grants Payment to the Lewis and Clark 
41.17 	Rural Water System, Inc., must be awarded 
41.18 	to projects approved by the Lewis and Clark 
41.19 	Joint Powers Board.
41.20 	This appropriation is available only to the 
41.21 	extent that each $1 of state money is matched 
41.22 	by at least $1 of local money paid to the 
41.23 	Lewis and Clark Rural Water System, Inc.
41.24 	for each $1 of state money to be used to 
41.25 	reimburse costs incurred on eligible projects.
41.26 	This appropriation is the first phase of the 
41.27 	state share for the Lewis and Clark Rural 
41.28 	Water System, Inc. project as defined in the 
41.29 	federal Lewis and Clark Rural Water System 
41.30 	Act of 2000.

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

41.33	Subd. 16.Minneapolis

41.34	(a) Minnesota Planetarium
				22,000,000
	
42.1 	For a grant to the city of Minneapolis
42.2 	Hennepin County to complete design and 
42.3 	to construct, furnish, and equip a new 
42.4 	Minnesota planetarium and space discovery 
42.5 	center in conjunction with the Minneapolis 
42.6 	downtown library.

42.7	(b) Heritage Park
					
42.8 	Any unspent balance remaining on December 
42.9 	31, 2004, in the appropriation made by 
42.10 	Laws 2000, chapter 492, article 1, section 
42.11 	22, subdivision 10, for a grant to the city of 
42.12 	Minneapolis, may be used by the city for 
42.13 	improvements to the Heritage Park project.

42.14	(c) Minnesota Shubert Center
				1,000,000
	
42.15 	For a grant to the city of Minneapolis to 
42.16 	predesign and design and provide for related 
42.17 	capital costs for an associated atrium to 
42.18 	create the Minnesota Shubert Center.

42.19 	EFFECTIVE DATE. This section is effective on the same date as H.F. 1973/S.F. 
42.20 	1812, if enacted in the 2007 legislative session.

42.21 	Sec. 44. Laws 2005, chapter 156, article 2, section 46, is amended to read:
42.22 	Sec. 46. FORD BUILDING.
 42.23 	The Ford Building at 117 University Avenue in St. Paul may not be demolished 
42.24 	during the biennium ending before June 30, 2007 2008. By January 15, 2006, the 
42.25 	commissioner of administration, in consultation with interested legislators, private sector 
42.26 	real estate professionals, historic preservation specialists, and representatives of the city of 
42.27 	St. Paul, neighboring property, and St. Paul neighborhood associations, must report to the 
42.28 	legislature with recommendations regarding potential means of preserving and using the 
42.29 	Ford Building. The report must include:
42.30 	(1) availability of potential lessees for the building;
42.31 	(2) constraints on leasing the building, including the requirement to pay off any state 
42.32 	general obligation bonds previously used in maintaining or rehabilitating the building; and 
43.1 	(3) the cost of restoring and rehabilitating the building, and the feasibility of various 
43.2 	means of paying these costs, including potential use of revenue bonds.

43.3 	Sec. 45. Laws 2006, chapter 258, section 4, subdivision 4, is amended to read:

43.4	Subd. 4.MacPhail Music Center
 				5,000,000
	
43.5 	(a) For a grant to the city of Minneapolis to 
43.6 	predesign, design, construct, furnish, and 
43.7 	equip a new facility for the MacPhail Center 
43.8 	for Music. The city of Minneapolis may 
43.9 	enter into a lease or management agreement 
43.10 	to operate the center, subject to Minnesota 
43.11 	Statutes, section 16A.695. This appropriation 
43.12 	is not available until the commissioner has 
43.13 	determined that not less than $15,000,000 
43.14 	has been committed to the MacPhail Center 
43.15 	for Music from nonstate sources, and that 
43.16 	the available money is sufficient to complete 
43.17 	a functional facility. Money secured before 
43.18 	the effective date of this section may count 
43.19 	toward the required commitment of nonstate 
43.20 	sources, provided it is used for qualified 
43.21 	capital expenditures. Any land acquisition 
43.22 	costs paid by MacPhail Center for Music 
43.23 	qualify as capital expenditures.
43.24 	(b) The city of Minneapolis may provide 
43.25 	money to predesign, design, construct, 
43.26 	furnish, and equip a center for music 
43.27 	education, including classrooms and a 
43.28 	recital hall in the city of Minneapolis, 
43.29 	to provide a facility for education of 
43.30 	students, music therapy programs for 
43.31 	persons with disabilities, music teacher 
43.32 	training opportunities, curriculum and 
43.33 	program development, and to provide the 
43.34 	programming in public and private schools 
44.1 	and in partnership with other organizations 
44.2 	throughout the state.
44.3 	(c) The required demonstration of a 
44.4 	commitment of funds from nonstate sources 
44.5 	has been met by cash, prepaid qualified 
44.6 	expenses, and private multiyear pledges that 
44.7 	have been converted into cash through bond 
44.8 	financing and a letter of credit secured by 
44.9 	a mortgage lien on the state bond financed 
44.10 	property. The $5,000,000 construction grant 
44.11 	shall be disbursed without requirement that 
44.12 	the mortgage lien be released.
44.13 	(d) The commissioners of education and 
44.14 	finance shall agree to a provision in the 
44.15 	ground lease that permits the city of 
44.16 	Minneapolis to purchase for fair market 
44.17 	value, as that term is defined in Minnesota 
44.18 	Statutes, section 16A.695, subdivision 1, 
44.19 	paragraph (d), the interest of the operating 
44.20 	lease lessee in the state bond financed 
44.21 	property (based on investment in land 
44.22 	and capital improvements) in the event of 
44.23 	nonrenewal of the operating lease at the time 
44.24 	of nonrenewal without requirement of a prior 
44.25 	escrow for funds by the city of Minneapolis.

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

44.27 	Sec. 46. Laws 2006, chapter 258, section 7, subdivision 3, is amended to read:

44.28	Subd. 3.Flood Hazard Mitigation Grants 
 				25,000,000
	
44.29 	For the state share of flood hazard 
44.30 	mitigation grants for publicly owned capital 
44.31 	improvements to prevent or alleviate flood 
44.32 	damage under Minnesota  Statutes, section 
44.33 	103F.161.
45.1 	The commissioner shall determine project 
45.2 	priorities as appropriate, based on need.
45.3 	This appropriation includes money for the 
45.4 	following projects:
45.5 	(a) Austin
45.6 	(b) Albert Lea
45.7 	(c) Browns Valley
45.8 	(d) Crookston
45.9 	(d) (e) Canisteo Mine
45.10 	(e) (f) Delano 
45.11 	(f) (g) East Grand Forks
45.12 	(g) (h) Golden Valley
45.13 	(h) (i) Grand Marais Creek
45.14 	(i) (j) Granite Falls
45.15 	(j) (k) Inver Grove Heights
45.16 	(k) (l) Manston Slough
45.17 	(l) (m) Oakport Township
45.18 	(m) (n) Riverton Township
45.19 	(n) (o) Roseau
45.20 	(p) Shell Rock Watershed District
45.21 	(o) (q) St. Vincent
45.22 	(p) (r) Wild Rice River Watershed District
45.23 	For any project listed in this subdivision 
45.24 	that the commissioner determines is not 
45.25 	ready to proceed or does not expend all the 
45.26 	money allocated to it, the commissioner may 
45.27 	allocate that project's money to a project on 
45.28 	the commissioner's priority list.
45.29 	To the extent that the cost of a project in Ada, 
45.30 	Breckenridge, Browns Valley, Crookston, 
45.31 	Dawson, East Grand Forks, Granite Falls, 
46.1 	Montevideo, Oakport Township, Roseau, 
46.2 	St. Vincent, or Warren exceeds two percent 
46.3 	of the median household income in the 
46.4 	municipality multiplied by the number 
46.5 	of households in the municipality, this 
46.6 	appropriation is also for the local share of the 
46.7 	project. The local share for the St. Vincent 
46.8 	dike may not exceed $30,000.

46.9 	Sec. 47. Laws 2006, chapter 258, section 7, subdivision 7, is amended to read:

46.10	Subd.  7.Lake Superior safe harbors
 				3,000,000
	
46.11 	To design and construct capital  improvements 
46.12 	to public accesses and  small craft harbors on 
46.13 	Lake Superior in accordance with Minnesota 
46.14 	Statutes, sections 86A.20 to 86A.24, and in 
46.15 	cooperation with the United States Army 
46.16 	Corps of Engineers.
46.17 	This appropriation may be used to develop 
46.18 	the harbor of refuge and marina at Two 
46.19 	Harbors and is added to the appropriations 
46.20 	in Laws 1998, chapter 404, section 7, 
46.21 	subdivision 24; and Laws 2000, chapter 
46.22 	492, article 1, section 7,  subdivision 21, as 
46.23 	amended by Laws 2005, chapter 20, article 
46.24 	1, section 42. Notwithstanding those laws, 
46.25 	the commissioner may proceed with the Two 
46.26 	Harbors project by providing up to $625,000 
46.27 	to complete the design specifications and 
46.28 	environmental work currently underway and 
46.29 	proceed with the remaining money for the 
46.30 	project upon securing an agreement with the 
46.31 	U.S. Army Corps of Engineers that commits 
46.32 	federal expenditures of at least $4,000,000 
46.33 	to the project.

47.1 	Sec. 48. Laws 2006, chapter 258, section 7, subdivision 11, is amended to read:

47.2	Subd. 11.Water control structures
 				1,000,000
	
47.3 	To rehabilitate or replace water control 
47.4 	structures used to manage shallow lakes and 
47.5 	wetlands for waterfowl habitat on wildlife 
47.6 	management areas under Minnesota Statutes, 
47.7 	section 86A.05, subdivision 8, or for the 
47.8 	purposes of public water reserves under 
47.9 	Minnesota Statutes, section 97A.101.

47.10 	Sec. 49. Laws 2006, chapter 258, section 7, subdivision 22, is amended to read:

47.11	Subd. 22.Regional trails
 				1,133,000
	
47.12 	For matching grants under Minnesota 
47.13 	Statutes, section 85.019, subdivision 4b.
47.14 	$648,000 is for the Agassiz Recreational 
47.15 	ATV Trail. Snowmobile trail grant money 
47.16 	received under Minnesota Statutes, section 
47.17 	84.83, subdivision 3, and all-terrain vehicle 
47.18 	trail grant money received under Minnesota 
47.19 	Statutes, section 84.927, subdivision 2, may 
47.20 	be counted as part of the county's required 50 
47.21 	percent nonstate match.
47.22 	$485,000 is for a grant to the Central 
47.23 	Minnesota Regional Parks and Trails 
47.24 	Coordination Board to design, engineer, 
47.25 	and construct 6.3 miles of trail and two 
47.26 	parking areas along the Mississippi River 
47.27 	in Sherburne County, to be known as Xcel 
47.28 	Energy Great River Woodland Trail.

47.29 	Sec. 50. Laws 2006, chapter 258, section 16, subdivision 4, is amended to read:

47.30	Subd. 4.Northstar Commuter Rail
 				60,000,000
	
47.31 	(a) To acquire land, or an interest in land, 
47.32 	and to design, construct, furnish, and equip 
48.1 	the Northstar commuter rail line serving 
48.2 	Big Lake to downtown Minneapolis and 
48.3 	to acquire land, or an interest in land, and 
48.4 	to design, construct, furnish, and equip 
48.5 	the extension of the Hiawatha light rail 
48.6 	transit line from its terminus in downtown 
48.7 	Minneapolis to a new terminus near Fifth 
48.8 	Avenue North adjacent to the proposed 
48.9 	downtown Minneapolis commuter rail 
48.10 	station.
48.11 	(b) This appropriation is added to the 
48.12 	appropriation in Laws 2005, chapter 20, 
48.13 	article 1, section 18, subdivision 5.
48.14 	(c) This appropriation is not available until 
48.15 	a full-funding grant agreement has been 
48.16 	executed with, or a letter of no prejudice 
48.17 	for a specific component of the project or 
48.18 	pre-award authority has been issued by, the 
48.19 	Federal Transit Administration.
48.20 	(d) If the Northstar commuter rail line is 
48.21 	extended from Big Lake to the St. Cloud 
48.22 	area, regional rail authority members of the 
48.23 	Northstar Corridor Development Authority 
48.24 	who did not fund a portion of the share 
48.25 	of capital costs from Minneapolis to Big 
48.26 	Lake shall contribute an amount for the 
48.27 	extension equal to the amount they would 
48.28 	have contributed for their proportional share 
48.29 	of the entire line from Minneapolis to the 
48.30 	St. Cloud area.

48.31 	Sec. 51. Laws 2006, chapter 258, section 21, subdivision 6, is amended to read:

48.32	Subd. 6.Redevelopment Account
 				9,000,000
	
48.33 	For purposes of the redevelopment account 
48.34 	under Minnesota Statutes, section 116J.571.
49.1 	$800,000 is for a grant to the city of 
49.2 	Worthington to remediate contaminated 
49.3 	soil and redevelop the site of the former 
49.4 	Campbell Soup factory. This grant is exempt 
49.5 	from the requirements of Minnesota Statutes, 
49.6 	sections 116J.572 to 116J.575.
49.7 	$250,000 is for a grant to the city of 
49.8 	Winona to predesign facilities for the 
49.9 	Shakespeare Festival as part of the riverfront 
49.10 	redevelopment plan. This grant is exempt 
49.11 	from the requirements of Minnesota Statutes, 
49.12 	sections 116J.572 to 116J.575.

49.13 	Sec. 52. Laws 2006, chapter 258, section 21, subdivision 15, is amended to read:

49.14
49.15	Subd. 15.Lewis and Clark Rural Water 
System, Inc.
 				3,282,000
	
49.16 	This appropriation is from the general fund 
49.17 	to the Public Facilities Authority for  grants 
49.18 	to the city of Luverne, city of Worthington 
49.19 	Public Utilities, Lincoln-Pipestone rural 
49.20 	water system, and Rock County rural water 
49.21 	system Lewis and Clark Joint Powers 
49.22 	Board to acquire land, predesign, design, 
49.23 	construct, furnish, and equip one or more
49.24 	water transmission and storage  facilities to 
49.25 	accommodate the connection with of the 
49.26 	Lewis and Clark Rural Water System, Inc. 
49.27 	that will serve southwestern Minnesota.
49.28 	The grants Payment to the Lewis and Clark 
49.29 	Rural Water System, Inc. must be awarded 
49.30 	to projects approved by the Lewis and Clark 
49.31 	Joint Powers Board.
49.32 	This appropriation is available to the extent 
49.33 	that each $1 of state money is matched by at 
49.34 	least $1 of local money paid to the Lewis and 
50.1 	Clark Rural Water System, Inc. to reimburse 
50.2 	the system for costs incurred on eligible 
50.3 	projects.

50.4 	Sec. 53. Laws 2006, chapter 258, section 23, subdivision 3, is amended to read:

50.5
50.6	Subd. 3.Historic Fort Snelling Museum and 
Visitor Center
 				1,100,000
	
50.7 	To design the restoration and renovation of 
50.8 	the 1904 Cavalry Barracks Building for the 
50.9 	historic Fort Snelling Museum and Visitor 
50.10 	Center and other site improvements to 
50.11 	revitalize historic Fort Snelling.

50.12 	Sec. 54. REPORT ON EAST PHILLIPS CULTURAL AND COMMUNITY 
50.13 	CENTER.
 50.14 	The Metropolitan Council shall report by January 1, 2008, to the legislative 
50.15 	committees with jurisdiction over capital investment on the terms of the grant agreement 
50.16 	and progress on design and construction of the East Phillips Cultural and Community 
50.17 	Center by the Minneapolis Park and Recreation Board with the appropriation in Laws 
50.18 	2006, chapter 258, section 17, subdivision 8.

50.19 	Sec. 55. PUBLIC FACILITIES AUTHORITY FUNDING.
 50.20 	To the greatest practical extent, projects on the Public Facilities Authority's 2007 
50.21 	intended use plan, the listings for which were based on the Pollution Control Agency's 
50.22 	2006 project priority list, shall be carried over to the 2008 intended use plan. Projects that 
50.23 	qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258, 
50.24 	section 21, that could not be certified by the Pollution Control Agency by the applicable 
50.25 	deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court 
50.26 	issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to 
50.27 	obtain the required certification from the Pollution Control Agency.

50.28 	Sec. 56. GREENLEAF LAKE STATE RECREATION AREA.
 50.29 		Subdivision 1.[85.013] [Subd. 11b.] Greenleaf Lake State Recreation Area.
 50.30 	In addition to the lands designated under Laws 2003, First Special Session chapter 13, 
50.31 	section 6, as amended by Laws 2004, chapter 262, article 2, section 10, the following lands 
50.32 	are added to the Greenleaf Lake State Recreation Area:
51.1 	(1) the West 1104.98 feet of Government Lot 4, Section 21, Township 118 North, Range 
51.2 	30 West, Meeker County, Minnesota; and
51.3 	(2) that part of Government Lot 7 of Section 20, Township 118, Range 30, which lies 
51.4 	south of the following described line and its extensions: said line commencing at the 
51.5 	southwest corner of said Section 20; thence on an assumed bearing of North 08 degrees 
51.6 	22 minutes 44 seconds West, along the west line of said section, a distance of 1350.00 
51.7 	feet to the point of beginning of the line to be described; thence North 88 degrees 28 
51.8 	minutes 35 seconds East, a distance of 699 feet to the shoreline of Greenleaf Lake and 
51.9 	said line terminating thereat; and Government Lot 8 of said section except the following 
51.10 	described tract: said tract being that part of said Government Lot 8 lying east of the 
51.11 	following described line: said line commencing at the southwest corner of said section; 
51.12 	thence easterly, along the south line of said section, a distance of 734.60 feet to the point 
51.13 	of beginning of the line to be described; thence north at a right angle, a distance of 100 
51.14 	feet and said line terminating thereat.
51.15 		Subd. 2.Management plan. The commissioner of natural resources, in 
51.16 	consultation with local elected officials and citizens of Meeker County and other 
51.17 	interested stakeholders, shall develop a comprehensive management plan that provides for 
51.18 	opportunities for outdoor recreation, as defined under Minnesota Statutes, section 86A.03, 
51.19 	subdivision 3, in Greenleaf Lake State Recreation Area. The completed management plan 
51.20 	shall serve as the master plan for purposes of Minnesota Statutes, section 86A.09.

51.21 	Sec. 57.REVISOR'S INSTRUCTION.
 51.22 	The revisor of statutes shall change "116R.01 to 116R.16" to "116R.01 to 116R.15" 
51.23 	wherever it appears in Minnesota Statutes.

51.24 	Sec. 58. REPEALER.
 51.25 	(a) Minnesota Statutes 2006, sections 85.012, subdivision 24b; 116R.02, 
51.26 	subdivisions 3, 6, 7, and 9; and 116R.16, are repealed.
51.27 	(b) Laws 2006, chapter 258, section 14, subdivision 6, is repealed.

51.28 	Sec. 59. EFFECTIVE DATE.
 51.29 	Except as otherwise provided, this act is effective the day following final enactment.