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 certain 
1.4 	conditions; establishing new programs and modifying existing programs; creating 
1.5 	the Minnesota Biomedical Science Research Facilities Authority; authorizing 
1.6 	the sale of state bonds; canceling previous appropriations; appropriating money;
1.7 	amending Laws 2005, chapter 20, article 1, sections 7, subdivision 2; 23, 
1.8 	subdivision 8; Laws 2005, chapter 156, article 2, section 46; Laws 2006, chapter 
1.9 	258, sections 4, subdivision 4; 7, subdivisions 3, 7, 22; 16, subdivision 4; 21, 
1.10 	subdivisions 6, 15; proposing coding for new law in Minnesota Statutes, chapter 
1.11 	137.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	ARTICLE 1

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

1.23	SUMMARY
	
1.24	University Of Minnesota
	$
	36,400,000
	
1.25	Minnesota State Colleges And Universities
		33,800,000
	
1.26	Education
		5,000,000
	
1.27	Natural Resources
		3,125,000
	
2.1	Pollution Control Agency
		2,500,000
	
2.2	Board Of Water And Soil Resources
		10,165,000
	
2.3	Zoological Garden
		1,500,000
	
2.4	Administration
		15,400,000
	
2.5	Public Safety
		9,550,000
	
2.6	Transportation
		53,173,000
	
2.7	Metropolitan Council
		47,350,000
	
2.8	Human Services
		150,000
	
2.9	Corrections
		6,117,000
	
2.10	Employment And Economic Development
		82,650,000
	
2.11	Bond Sale Expenses
		167,000
	
2.12	Cancellations
		(5,282,000)
	
2.13	Lewis and Clark
		5,200,000
	
2.14	TOTAL
	$
	306,605,000
	
2.15	Bond Proceeds Fund (General Fund Debt Service)
		110,268,000
	
2.16	Bond Proceeds Fund (User Financed Debt Service)
		1,267,000
	
2.17	State Transportation Fund
		30,000,000
	
2.18	Trunk Highway Fund Bond Proceeds Account
		33,420,000
	
2.19	General Fund
		136,932,000
	
2.20	Bond Proceeds Cancellations
		(5,282,000)

2.21				APPROPRIATIONS

2.22	Sec. 2. UNIVERSITY OF MINNESOTA

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

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

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

3.3
3.4	Sec. 3. MINNESOTA STATE COLLEGES 
AND UNIVERSITIES

3.5	Subdivision 1.Total Appropriation
 			$
	33,800,000
	
3.6 	To the Board of Trustees of the Minnesota 
3.7 	State Colleges and Universities for the 
3.8 	purposes specified in this section.

3.93.10
	Subd. 2.Higher Education Asset Preservation 
and Replacement
 				30,000,000
	
3.11 	This appropriation is for the purposes 
3.12 	specified in Minnesota Statutes, section 
3.13 	135A.046.

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

3.17
3.18	Subd. 4.Fond du Lac Tribal and Community 
College
 				1,800,000
	
3.19 	To acquire property adjacent to the Fond du 
3.20 	Lac Tribal and Community College.

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

4.22	Sec. 4. EDUCATION

4.23	Subdivision 1.Total Appropriation
 			$
	5,000,000
	
4.24 	To the commissioner of education for the 
4.25 	purposes specified in this section.

4.26
4.27	Subd. 2.Independent School District No. 38, 
Red Lake
 				5,000,000
	
4.28 	This appropriation is from the general 
4.29 	fund for a grant to Independent School 
4.30 	District No. 38, Red Lake, to design, 
4.31 	construct, furnish, and equip renovation of 
4.32 	existing facilities and construction of new 
4.33 	facilities. The project includes renovation 
4.34 	of, and an addition to, the high school and 
4.35 	middle school to provide classrooms and 
5.1 	related facilities for technology education, 
5.2 	vocational education, physical education, 
5.3 	and community education, and to provide for 
5.4 	food services and administrative offices. The 
5.5 	heating plant and piping for the high school 
5.6 	and middle school will be upgraded. The 
5.7 	project includes renovation of the Red Lake 
5.8 	Elementary School to add classrooms and 
5.9 	to link it to the Early Childhood Learning 
5.10 	Center. The project includes renovation 
5.11 	of the Ponemah Elementary School to 
5.12 	add a media center and Head Start center, 
5.13 	add parking, improve the bus drop-off, 
5.14 	and expand playground facilities. The 
5.15 	commissioner and Independent School 
5.16 	District No. 38, Red Lake, shall report to 
5.17 	the legislature by January 10, 2008, on the 
5.18 	progress of the project funded by the grant.

5.19	Sec. 5. NATURAL RESOURCES

5.20	Subdivision 1.Total Appropriation
 			$
	3,125,000
	
5.21 	To the commissioner of natural resources for 
5.22 	the purposes specified in this section.
5.23 	The appropriations in this section are from 
5.24 	the general fund.
5.25 	The appropriations in this section are subject 
5.26 	to the requirements of the natural resources 
5.27 	capital improvement program set forth in 
5.28 	Minnesota Statutes, section 86A.12, unless 
5.29 	this section or the statutes referred to in this 
5.30 	section provide more specific standards, 
5.31 	criteria, or priorities for projects than 
5.32 	Minnesota Statutes, section 86A.12.

5.33	Subd. 2.Stillwater Flood Control Phase III
 				200,000
	
6.1 	This appropriation is from the general 
6.2 	fund for a grant under Minnesota Statutes, 
6.3 	section 103F.161, to the city of Stillwater to 
6.4 	predesign, design, and begin construction 
6.5 	of Phase III of the Stillwater flood control 
6.6 	project, including flood control structures 
6.7 	and pumping stations. This appropriation 
6.8 	is not available until the commissioner has 
6.9 	determined that at least $2,000,000 has been 
6.10 	committed from nonstate sources.

6.11	Subd. 3.Lake Zumbro Restoration
 				350,000
	
6.12 	This appropriation is from the general 
6.13 	fund for an agreement with Olmsted and 
6.14 	Wabasha Counties to design and engineer 
6.15 	the restoration of Lake Zumbro. This is a 
6.16 	onetime appropriation and is available until 
6.17 	June 30, 2009.

6.18	Subd. 4.Red River Digital Elevation Model
 				600,000
	
6.19 	This appropriation is from the general fund 
6.20 	to develop and implement a high-resolution 
6.21 	digital elevation model for the Red River 
6.22 	basin.

6.23	Subd. 5.Greenleaf Lake State Park
 				700,000
	
6.24 	To acquire from willing sellers land within 
6.25 	the boundaries of Greenleaf Lake State Park, 
6.26 	established under Minnesota Statutes, section 
6.27 	85.012, subdivision 24b.

6.28	Subd. 6.Fort Snelling Upper Bluff
 				500,000
	
6.29 	This appropriation is from the general fund 
6.30 	for a grant to Hennepin County to conduct 
6.31 	emergency building stabilization at Fort 
6.32 	Snelling Upper Bluff. This appropriation 
6.33 	is not available until the commissioner of 
7.1 	finance has determined that Hennepin County 
7.2 	has entered into appropriate agreements to 
7.3 	use sentence-to-serve labor for the project 
7.4 	that will train sentence-to-serve laborers in 
7.5 	the skills needed for the work.

7.6
7.7	Subd. 7.State Trail Acquisition and 
Development
 				775,000
	
7.8 	To acquire land for and to construct and 
7.9 	renovate state trails under Minnesota 
7.10 	Statutes, section 85.015.
7.11 	$125,000 is for the Cuyuna Lakes Trail, to 
7.12 	develop a natural surface multiuse trail in the 
7.13 	Cuyuna Country State Recreation Area.
7.14 	$650,000 is for the Gateway Trail, to replace 
7.15 	an at-grade crossing of the Gateway Trail at 
7.16 	Highway 120 with a tunnel.

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

7.18	Closed landfill program
 					
7.19 	This appropriation is from the general fund 
7.20 	for a grant to the city of Albert Lea to 
7.21 	construct remedial systems at the Albert 
7.22 	Lea landfill. This includes relocating and 
7.23 	incorporating waste from the former Albert 
7.24 	Lea dump owned by the city of Albert 
7.25 	Lea under Minnesota Statutes, section 
7.26 	115B.403, which action may be taken by the 
7.27 	Pollution Control Agency notwithstanding 
7.28 	the provisions of Minnesota Statutes, section 
7.29 	115B.403, paragraphs (a) and (b).
7.30 	The appropriation in this section is added to 
7.31 	the amounts for the city of Albert Lea landfill 
7.32 	funding in Laws 2006, chapter 258, section 
7.33 	8, subdivision 2.

8.1
8.2	Sec. 7. BOARD OF WATER AND SOIL 
RESOURCES

8.3	Subdivision 1.Total Appropriation
 			$
	10,165,000
	
8.4 	To the Board of Water and Soil Resources 
8.5 	for the purposes specified in this section.

8.6	Subd. 2.RIM Conservation Reserve
 				10,000,000
	
8.7 	This appropriation is from the general 
8.8 	fund to acquire conservation easements 
8.9 	from landowners on marginal lands and to 
8.10 	construct conservation measures on acquired 
8.11 	land in order to protect soil and water quality 
8.12 	and to support fish and wildlife habitat as 
8.13 	provided in Minnesota Statutes, sections 
8.14 	103F.501 to 103F.535. Of this, $1,500,000 is 
8.15 	for technical and professional services under 
8.16 	the program.

8.17	Subd. 3.Lake Titlow Watershed Improvements
 				165,000
	
8.18 	This appropriation is from the general fund.
8.19 	$150,000 is for a grant to the city of Gaylord 
8.20 	to predesign and design holding ponds 
8.21 	upstream from Lake Titlow. The design 
8.22 	must include the best location for the ponds, 
8.23 	an estimate of the cost of land acquisition 
8.24 	or easements, construction costs of the 
8.25 	holding ponds, and the estimated expense 
8.26 	of maintaining the structures and who will 
8.27 	be responsible for the expense. The city 
8.28 	must also coordinate with state and county 
8.29 	conservation officials to ensure correct 
8.30 	conservation practices and improvements in 
8.31 	the watershed district.
8.32 	$15,000 is for a grant to the city of Gaylord to 
8.33 	purchase open intake tile covers or cones that 
8.34 	limit soil erosion and chemicals from entering 
9.1 	the water ditch systems and waterways of 
9.2 	the Lake Titlow watershed. These water 
9.3 	control devices must be provided at low 
9.4 	cost to landowners to promote conservation 
9.5 	improvement and clean up groundwater. 
9.6 	Volunteers from the city of Gaylord and local 
9.7 	clubs and high school students must be used 
9.8 	to install the water control devices at no cost 
9.9 	to the landowner.

9.10
9.11	Sec. 8. MINNESOTA ZOOLOGICAL 
GARDEN
 			$
	1,500,000

9.12	Inflow and infiltration emergency abatement
 					
9.13 	This appropriation is from the general fund to 
9.14 	the Minnesota Zoological Garden to design 
9.15 	and construct improvements to its water 
9.16 	management system. The project must be 
9.17 	designed to address inflow and infiltration 
9.18 	problems associated with the Minnesota 
9.19 	Zoo's water discharge flow to the city of 
9.20 	Eagan.

9.21	Sec. 9. ADMINISTRATION

9.22	Subdivision 1.Total Appropriation
 			$
	15,040,000
	
9.23 	To the commissioner of administration for 
9.24 	the purposes specified in this section.

9.25
9.26	Subd. 2.Exterior Repair of Transportation 
Building
 				12,715,000
	
9.27 	This appropriation is from the bond proceeds 
9.28 	account in the trunk highway fund to repair 
9.29 	and renovate the exterior of the Department 
9.30 	of Transportation Building at 395 John 
9.31 	Ireland Boulevard in St. Paul.

9.32	Subd. 3.Property Acquisition
 				2,325,000
	
9.33 	This appropriation is from the general fund 
9.34 	to acquire property at 639 Jackson Street in 
10.1 	St. Paul adjacent to the Harold E. Stassen 
10.2 	Building, to demolish existing structures 
10.3 	on the property, and to develop temporary 
10.4 	parking on the site and adjacent areas.

10.5	Sec. 10. PUBLIC SAFETY

10.6	Subdivision 1.Total Appropriation
 			$
	9,550,000
	
10.7 	To the commissioner of public safety for the 
10.8 	purposes specified in this section.
10.9 	The appropriations in this section are from 
10.10 	the general fund.

10.11
10.12	Subd. 2.Anoka County Forensic Crime 
Laboratory
 				2,500,000
	
10.13 	For a grant to Anoka County to design, 
10.14 	construct, furnish, and equip a regional 
10.15 	forensic crime laboratory, for the use of 
10.16 	Anoka, Sherburne, and Wright Counties, to 
10.17 	be located in Anoka County.
10.18 	This appropriation is not available until 
10.19 	the commissioner has determined that at 
10.20 	least $7,500,000 has been committed from 
10.21 	nonstate sources.

10.22
10.23	Subd. 3.Gonvick Public Safety Training 
Center
 				50,000
	
10.24 	For a grant to the city of Gonvick to 
10.25 	predesign a regional emergency training 
10.26 	administration center in Gonvick.
10.27 	This appropriation is not available until the 
10.28 	commissioner has determined that at least 
10.29 	an equal amount has been committed from 
10.30 	nonstate sources.

10.31
10.32	Subd. 4.Scott County Public Safety Training 
Center
 				2,500,000
	
11.1 	For a grant to Scott County to design, 
11.2 	construct, furnish, and equip a regional 
11.3 	public safety training center in Scott County.
11.4 	This appropriation is not available until the 
11.5 	commissioner has determined that at least 
11.6 	an equal amount has been committed from 
11.7 	nonstate sources.

11.8
11.9	Subd. 5.Southeastern Minnesota Regional 
Public Safety Training Center
 				2,500,000
	
11.10 	To design, construct, furnish, and equip the 
11.11 	Southeastern Minnesota Regional Public 
11.12 	Safety Training Center in Rochester. The 
11.13 	facility must include a live burn training 
11.14 	simulator adjacent to the existing National 
11.15 	Guard facility, a driving range, and a 
11.16 	weapons training facility.
11.17 	This appropriation is not available until the 
11.18 	commissioner has determined that at least 
11.19 	an equal amount has been committed from 
11.20 	nonstate sources.

11.21	Subd. 6.Browns Valley Flood Relief
 				2,000,000
	
11.22 	For a grant to the city of Browns Valley to be 
11.23 	used to mitigate damage to public and private 
11.24 	property caused by the flooding of March 
11.25 	2007. Grant money may be used to repair, 
11.26 	buy, or replace private property damaged by 
11.27 	flooding.

11.28	Sec. 11. TRANSPORTATION

11.29	Subdivision 1.Total Appropriation
 			$
	53,173,000
	
11.30 	To the commissioner of transportation for the 
11.31 	purposes specified in this section.

11.32
11.33	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				30,000,000
	
12.1 	This appropriation is from the bond proceeds 
12.2 	account in the state transportation fund as 
12.3 	provided in Minnesota Statutes, section 
12.4 	174.50, to match federal money and to 
12.5 	replace or rehabilitate local deficient bridges.
12.6 	Political subdivisions may use grants made 
12.7 	under this section to construct or reconstruct 
12.8 	bridges, including:
12.9 	(1) matching federal aid grants to construct 
12.10 	or reconstruct key bridges;
12.11 	(2) paying the costs of preliminary 
12.12 	engineering and environmental studies 
12.13 	authorized under Minnesota Statutes, section 
12.14 	174.50, subdivision 6a;
12.15 	(3) paying the costs to abandon an existing 
12.16 	bridge that is deficient and in need of 
12.17 	replacement, but where no replacement will 
12.18 	be made; and
12.19 	(4) paying the costs to construct a road 
12.20 	or street to facilitate the abandonment 
12.21 	of an existing bridge determined by 
12.22 	the commissioner to be deficient, if the 
12.23 	commissioner determines that construction 
12.24 	of the road or street is more cost efficient 
12.25 	than the replacement of the existing bridge.

12.26	Subd. 3.Port Development Assistance
 				500,000
	
12.27 	This appropriation is from the general fund 
12.28 	for grants under Minnesota Statutes, chapter 
12.29 	457A. Any improvements made with the 
12.30 	proceeds of these grants must be publicly 
12.31 	owned.

12.32	Subd. 4.Mankato District Headquarters
 				20,673,000
	
12.33 	This appropriation is from the bond proceeds 
12.34 	account in the trunk highway fund to 
13.1 	design, construct, furnish, and equip a 
13.2 	new Department of Transportation district 
13.3 	headquarters facility in Mankato.

13.4	Subd. 5.High-Speed Rail Line
 				2,000,000
	
13.5 	This appropriation is from the general fund 
13.6 	for the state's share of a high-speed rail 
13.7 	line between the Union Depot Concourse 
13.8 	Multimodal Transit Hub, located in 
13.9 	downtown St. Paul in the area south of 
13.10 	Kellogg Boulevard and east of Jackson 
13.11 	Street, and Chicago. No part of this 
13.12 	appropriation may be spent to acquire or 
13.13 	better capital improvements that are located 
13.14 	outside the state of Minnesota, that may be 
13.15 	used from time to time outside the state of 
13.16 	Minnesota, or that are part of a rail corridor 
13.17 	that is not designated by the Midwest 
13.18 	Interstate Passenger Rail Compact.

13.19	Sec. 12. METROPOLITAN COUNCIL

13.20	Subdivision 1.Total Appropriation
 			$
	47,350,000
	
13.21 	To the Metropolitan Council for the purposes 
13.22 	specified in this section.
13.23 	The appropriations in this section are from 
13.24 	the general fund, unless another fund is 
13.25 	named.

13.26	Subd. 2.Central Corridor Transit Way
 				40,000,000
	
13.27 	This appropriation is from the bond proceeds 
13.28 	fund for preliminary engineering, preliminary 
13.29 	design, final design, and construction of the 
13.30 	central corridor transit way between the city 
13.31 	of Minneapolis and the city of St. Paul, with 
13.32 	the terminus to be located in the Union Depot 
13.33 	Concourse Multimodal Transit Hub, located 
13.34 	in downtown St. Paul in the area south 
14.1 	of Kellogg Boulevard and east of Jackson 
14.2 	Street. 
14.3 	This appropriation may not be spent for 
14.4 	capital improvements within a trunk highway 
14.5 	right-of-way.
14.6 	District heating and district cooling nonprofit 
14.7 	corporations organized under Minnesota 
14.8 	Statutes, chapter 317A, that are exempt 
14.9 	organizations under section 501(c)(3) of 
14.10 	the United States Internal Revenue Code 
14.11 	that are public right-of-way users under 
14.12 	Minnesota Rules, chapter 7819, are eligible 
14.13 	to receive grants and federal money for 
14.14 	costs of relocating facilities from public 
14.15 	rights-of-way to prevent interference with 
14.16 	public light rail projects.

14.17	Subd. 3.Transit Way Study
 				250,000
	
14.18 	For a feasibility study of transit options in the 
14.19 	following transit way corridors: along or near 
14.20 	marked Interstate Highway 94, beginning 
14.21 	at the Union Depot in downtown St. Paul, 
14.22 	extending eastward through Washington 
14.23 	County to the Minnesota-Wisconsin border, 
14.24 	and terminating in St. Croix County, 
14.25 	Wisconsin; along or near marked Interstate 
14.26 	Highway 394 from Wayzata to Minneapolis; 
14.27 	along or near marked Interstate Highway 
14.28 	494, from Minneapolis-St. Paul International 
14.29 	Airport to a transit station on the proposed 
14.30 	southwest transit way; the Red Rock corridor 
14.31 	between Hastings and Minneapolis via St. 
14.32 	Paul, and an extension between Hastings and 
14.33 	Red Wing; the Robert Street corridor from 
14.34 	the Union Depot in downtown St. Paul to 
14.35 	County Road 42 in Rosemount; the Rush line 
15.1 	corridor along I-35E/I-35W and Highway 
15.2 	61 from the Union Depot in downtown St. 
15.3 	Paul to Hinckley; and the southwest corridor, 
15.4 	from the Hiawatha light rail in downtown 
15.5 	Minneapolis to the vicinity of the Southwest 
15.6 	Station transit hub in Eden Prairie.

15.7	Subd. 4.South St. Paul - Span Arch Bridge
 				600,000
	
15.8 	For a grant to the city of South St. Paul 
15.9 	to design and construct a span arch bridge 
15.10 	under 19th Avenue in South St. Paul for 
15.11 	connection with the Dakota County North 
15.12 	Urban Regional Trail.

15.13	Subd. 5.Union Depot
 				4,000,000
	
15.14 	$2,800,000 of this appropriation is from the 
15.15 	general fund.
15.16 	$1,200,000 of this appropriation is from the 
15.17 	bond proceeds fund.
15.18 	For a grant to the Ramsey County Regional 
15.19 	Railroad Authority to acquire land and 
15.20 	structures, to renovate structures, and for 
15.21 	design, engineering, and environmental 
15.22 	work to revitalize Union Depot for use as a 
15.23 	multimodal transit center in St. Paul.

15.24
15.25	Subd. 6.Metropolitan Regional Parks Capital 
Improvements
 				2,500,000
	
15.26 	For the cost of improvements and betterments 
15.27 	of a capital nature and acquisition by the 
15.28 	council and local government units of 
15.29 	regional recreational open-space lands in 
15.30 	accordance with the council's policy plan 
15.31 	as provided in Minnesota Statutes, section 
15.32 	473.147. Priority must be given to park 
15.33 	rehabilitation and land acquisition projects.
16.1 	$2,500,000 is from the general fund 
16.2 	for a grant to the city of Fridley to 
16.3 	predesign, design, construct, and equip 
16.4 	the redevelopment and expansion of 
16.5 	the Springbrook Nature Center. This 
16.6 	appropriation is not available until the 
16.7 	commissioner has determined that at least 
16.8 	an equal amount has been committed from 
16.9 	nonstate sources.

16.10	Sec. 13. HUMAN SERVICES
 			$
	150,000

16.11	West central secured treatment facility
 					
16.12 	This appropriation is from the general fund 
16.13 	to the commissioner of human services 
16.14 	for a grant to Pope County to predesign 
16.15 	a multicounty regional secured treatment 
16.16 	facility in west central Minnesota. The 
16.17 	commissioner shall prepare a report to the 
16.18 	legislature assessing the need for and the 
16.19 	viability of the facility and the benefits 
16.20 	derived from a coordinated multicounty, 
16.21 	regional approach to local chemical 
16.22 	dependency needs in west central Minnesota. 
16.23 	The report is due to the legislature by 
16.24 	February 1, 2008.

16.25	Sec. 14. CORRECTIONS

16.26	Subdivision 1.Total Appropriation
 			$
	6,117,000
	
16.27 	To the commissioner of administration for 
16.28 	the purposes specified in this section.

16.29
16.30	Subd. 2.Minnesota Correctional Facility - Oak 
Park Heights

16.31	(a) Perimeter system renovation
				3,875,000
	
16.32 	This appropriation is from the general fund to 
16.33 	renovate the perimeter system at the Oak Park 
17.1 	Heights Correctional Facility by replacing 
17.2 	the security fence system for the inside wall 
17.3 	of the main prison yard and exterior fence, 
17.4 	replacing the perimeter lighting system and 
17.5 	the security razor ribbon, and installing 
17.6 	cameras and lighting to correspond to the 
17.7 	perimeter system's added security zones.

17.8	(b) Ventilation system renovation
				2,242,000
	
17.9 	This appropriation is from the general fund.
17.10 	To renovate the ventilation system at the 
17.11 	Oak Park Heights Correctional Facility by 
17.12 	demolishing sections of existing ductwork, 
17.13 	installing new ductwork, installing an 
17.14 	ultraviolet lighting system, installing system 
17.15 	air controls and electronics, and cleaning 
17.16 	or otherwise renovating sections of existing 
17.17 	ductwork.

17.18
17.19	Sec. 15. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

17.20	Subdivision 1.Total Appropriation
 			$
	82,650,000
	
17.21 	To the commissioner of employment and 
17.22 	economic development or other named 
17.23 	agency for the purposes specified in this 
17.24 	section.

17.25	Subd. 2.Bayport Storm Sewer
 				150,000
	
17.26 	This appropriation is from the general fund to 
17.27 	the Public Facilities Authority for a grant to 
17.28 	the city of Bayport for the Middle St. Croix 
17.29 	River Watershed Management Organization 
17.30 	to complete construction documents and 
17.31 	bidding for the sewer system extending from 
17.32 	Minnesota Department of Natural Resources 
17.33 	pond 82-310P (the prison pond) in Bayport 
18.1 	through the Stillwater prison grounds to the 
18.2 	St. Croix River.
18.3 	This appropriation is in addition to the 
18.4 	appropriations in Laws 2000, chapter 492, 
18.5 	article 1, section 21, subdivision 8, to 
18.6 	the commissioner of corrections and in 
18.7 	Laws 2005, chapter 20, article 1, section 
18.8 	23, subdivision 3, to the Public Facilities 
18.9 	Authority, for the same project.

18.10
18.11	Subd. 3.Duluth Entertainment and 
Convention Center
 				37,000,000
	
18.12 	For a grant to the Duluth Entertainment and 
18.13 	Convention Center Authority to design, 
18.14 	construct, furnish, and equip renovations to 
18.15 	the Duluth Entertainment and Convention 
18.16 	Center. The renovations must include an 
18.17 	approximately 217,446 square foot arena 
18.18 	with an ice sheet of at least 200 feet by 85 
18.19 	feet; trade show and concert space; seating 
18.20 	capacity of at least 6,630 with suites, club 
18.21 	seats, and concessions; state-of-the-art locker 
18.22 	and training facilities; and accessible and 
18.23 	expanded media space.
18.24 	The legislature recognizes that the authority 
18.25 	has all powers necessary or convenient 
18.26 	to design, construct, furnish, equip, and 
18.27 	improve the Duluth Entertainment and 
18.28 	Convention Center, including a new arena, 
18.29 	and may enter into contracts that are, in its 
18.30 	judgment, in the best interests of the public 
18.31 	for those purposes. Notwithstanding any law 
18.32 	to the contrary, the authority may adopt a 
18.33 	fair and competitive design and construction 
18.34 	procurement process as determined by the 
18.35 	authority to be in the public interest in 
19.1 	connection with the Duluth Entertainment 
19.2 	and Convention Center improvements.

19.3
19.4	Subd. 4.Itasca County - Steel Plant 
Infrastructure
 				30,000,000
	
19.5 	This appropriation is from the general 
19.6 	fund and is in addition to the appropriation 
19.7 	in Laws 2006, chapter 258, section 21, 
19.8 	subdivision 14.
19.9 	For a grant to Itasca County for public 
19.10 	infrastructure needed to support a steel plant 
19.11 	in Itasca County. Grant money may be used 
19.12 	by Itasca County to acquire right-of-way and 
19.13 	mitigate loss of wetlands and runoff of storm 
19.14 	water, to predesign, design, construct, and 
19.15 	equip roads and rail lines, and, in cooperation 
19.16 	with municipal public utilities, to predesign, 
19.17 	design, construct, and equip natural gas 
19.18 	pipelines, electric infrastructure, water 
19.19 	supply systems, and wastewater collection 
19.20 	and treatment systems. 

19.21
19.22	Subd. 5.Rice Street Bridge Over Trunk 
Highway 36
 				2,000,000
	
19.23 	This appropriation is from the general fund 
19.24 	for the preliminary planning, design, and 
19.25 	engineering of the Rice Street bridge where 
19.26 	it crosses marked Trunk Highway 36 in 
19.27 	Ramsey County.

19.28
19.29	Subd. 6.Rochester - Mayo Civic Center 
Complex
 				2,500,000
	
19.30 	This appropriation is from the general fund 
19.31 	for a grant to the city of Rochester to design 
19.32 	the renovation and expansion of the Mayo 
19.33 	Civic Center Complex.

19.34
19.35	Subd. 7.St. Cloud State University - National 
Hockey Center
 				11,000,000
	
20.1 	This appropriation is from the general fund 
20.2 	to the Board of Trustees of the Minnesota 
20.3 	State Colleges and Universities to predesign, 
20.4 	design, construct, furnish, and equip the 
20.5 	renovation of the National Hockey Center.

20.6	Sec. 16. HOUSING FINANCE AGENCY

20.7	Browns Valley flooding
 					
20.8 	The Housing Finance Agency may use 
20.9 	the disaster relief contingency fund 
20.10 	established under Minnesota Statutes, section 
20.11 	462A.21, subdivision 29, to assist with the 
20.12 	rehabilitation or replacement of housing 
20.13 	damaged as a result of the Browns Valley 
20.14 	flooding of March 2007, notwithstanding 
20.15 	that the area is not included in a presidential 
20.16 	declaration of major disaster.

20.17	Sec. 17. BOND SALE EXPENSES
 			$
	167,000
	
20.18 	$32,000 of this appropriation is from the 
20.19 	trunk highway fund to the commissioner 
20.20 	of finance for bond sale expenses under 
20.21 	Minnesota Statutes, section 16A.641, 
20.22 	subdivision 8.

20.23	Sec. 18. BOND SALE SCHEDULE
 					
20.24 	The commissioner of finance shall schedule 
20.25 	the sale of state general obligation bonds so 
20.26 	that, during the biennium ending June 30, 
20.27 	2009, no more than $918,620,000 will need 
20.28 	to be transferred from the general fund to the 
20.29 	state bond fund to pay principal and interest 
20.30 	due and to become due on outstanding 
20.31 	state general obligation bonds. During 
20.32 	the biennium, before each sale of state 
20.33 	general obligation bonds, the commissioner 
21.1 	of finance shall calculate the amount of 
21.2 	debt service payments needed on bonds 
21.3 	previously issued and shall estimate the 
21.4 	amount of debt service payments that will 
21.5 	be needed on the bonds scheduled to be 
21.6 	sold. The commissioner shall adjust the 
21.7 	amount of bonds scheduled to be sold so as 
21.8 	to remain within the limit set by this section. 
21.9 	The amount needed to make the debt service 
21.10 	payments is appropriated from the general 
21.11 	fund as provided in Minnesota Statutes, 
21.12 	section 16A.641.

21.13 	Sec. 19. BOND SALE AUTHORIZATION.
 21.14 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this 
21.15 	article from the bond proceeds fund, the commissioner of finance shall sell and issue 
21.16 	bonds of the state in an amount up to $111,535,000 in the manner, upon the terms, and 
21.17 	with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
21.18 	Minnesota Constitution, article XI, sections 4 to 7.
21.19 		Subd. 2.Transportation fund bond proceeds account. To provide the money 
21.20 	appropriated in this article from the state transportation fund, the commissioner of finance 
21.21 	shall sell and issue bonds of the state in an amount up to $30,000,000 in the manner, upon 
21.22 	the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 
21.23 	16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of 
21.24 	the bonds, except accrued interest and any premium received on the sale of the bonds, 
21.25 	must be credited to a bond proceeds account in the state transportation fund.
21.26 		Subd. 3.Trunk highway bonds. To provide the money appropriated in this article 
21.27 	from the bond proceeds account in the trunk highway fund, the commissioner of finance 
21.28 	shall sell and issue trunk highway bonds in an amount up to $33,420,000 in the manner, on 
21.29 	the terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, 
21.30 	and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts 
21.31 	requested by the commissioner of transportation. The proceeds of the bonds, except 
21.32 	accrued interest and any premium received on the sale of the bonds, must be credited to 
21.33 	the bond proceeds account in the trunk highway fund.

21.34 	Sec. 20. BOND SALE AUTHORIZATION REDUCTIONS.
 22.1 	The bond sale authorization in Laws 2005, chapter 20, article 1, section 28, 
22.2 	subdivision 1, is reduced by $2,000,000.
22.3 	The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is 
22.4 	reduced by $3,282,000.

22.5 	Sec. 21. Laws 2005, chapter 20, article 1, section 7, subdivision 2, is amended to read:

22.6	Subd. 2.Flood Hazard Mitigation Grants
 				27,000,000
	
22.7 	For the state share of flood hazard 
22.8 	mitigation grants for publicly owned capital 
22.9 	improvements to prevent or alleviate flood 
22.10 	damage under Minnesota Statutes, section 
22.11 	103F.161.
22.12 	The commissioner shall determine project 
22.13 	priorities as appropriate based on need.
22.14 	This appropriation includes money for 
22.15 	the following projects: Ada, Austin, 
22.16 	Breckenridge, Browns Valley, Canisteo 
22.17 	Mine, Cannon Falls, Crookston, Dawson, 
22.18 	East Grand Forks, Grand Marais Creek, 
22.19 	Granite Falls, Green Meadow Dam, Inver 
22.20 	Grove Heights, Little McDonald Lake, 
22.21 	Malung, Manston Slough, Minneapolis, 
22.22 	Montevideo, Oakport, Palmville, Roseau 
22.23 	River, St. Louis Park, Two River Ross 
22.24 	Impoundment, Warren, and Whiskey Creek.
22.25 	$2,000,000 is for Austin for identified 
22.26 	capital improvement projects, and any 
22.27 	other authorized federal or state flood 
22.28 	mitigation projects in the area designated 
22.29 	under Presidential Declaration of Major 
22.30 	Disaster, DR-1569, whether included in the 
22.31 	original declaration or added later by federal 
22.32 	government action. The area currently 
22.33 	included in DR-1569 includes territory 
22.34 	within the counties of Dodge, Faribault, 
23.1 	Freeborn, Martin, Mower, Olmsted, and 
23.2 	Steele.
23.3 	$175,000 is for the state share of a grant to 
23.4 	the city of Cannon Falls for predesign and 
23.5 	design of capital improvements to alleviate 
23.6 	flooding caused by runoff from the bluffs and 
23.7 	the flooding of the Little Cannon River and 
23.8 	the Cannon River.
23.9 	For any project listed in this subdivision that 
23.10 	is not ready to proceed or does not expend all 
23.11 	the money allocated to it, the commissioner 
23.12 	may allocate that project's money to a project 
23.13 	on the commissioner's priority list.
23.14 	To the extent that the cost of a project in 
23.15 	Ada, Austin, Breckenridge, Browns Valley,
23.16 	Dawson, East Grand Forks, Granite Falls, 
23.17 	Montevideo, Oakport Township, Roseau, or 
23.18 	Warren exceeds two percent of the median 
23.19 	household income in the municipality 
23.20 	multiplied by the number of households in 
23.21 	the municipality, this appropriation is also 
23.22 	for the local share of the project.
23.23 	There is no local share required for the 
23.24 	Canisteo Mine project.
23.25 	For grants for Roseau River wildlife 
23.26 	management area, Palmville, and Malung, 
23.27 	the state share must be $3 for each $1 of 
23.28 	nonstate contribution.
23.29 	Notwithstanding the grant expiration date of 
23.30 	June 30, 2002, the commissioner of natural 
23.31 	resources shall extend until June 30, 2007, 
23.32 	the expiration date of a grant made to the 
23.33 	city of Stillwater under Minnesota Statutes, 
23.34 	section 103F.161, used to match certain 
24.1 	federal appropriations for flood hazard 
24.2 	mitigation.

24.3 	Sec. 22. Laws 2005, chapter 20, article 1, section 23, subdivision 8, is amended to read:

24.4
24.5	Subd. 8.Lewis and Clark Rural Water System, 
Inc.
 				2,000,000
	
24.6 	This appropriation is from the general fund 
24.7 	to the Public Facilities Authority for grants 
24.8 	to the city of Luverne, city of Worthington 
24.9 	Public Utilities, Lincoln-Pipestone rural 
24.10 	water system, and Rock County rural water 
24.11 	systemLewis and Clark Joint Powers 
24.12 	Board to acquire land, predesign, design, 
24.13 	construct, furnish, and equip one or more
24.14 	water transmission and storage facilities to 
24.15 	accommodate the connection with of the 
24.16 	Lewis and Clark Rural Water System, Inc. 
24.17 	that will serve southwestern Minnesota.
24.18 	The grants Payment to the Lewis and Clark 
24.19 	Rural Water System, Inc. must be awarded 
24.20 	to projects approved by the Lewis and Clark 
24.21 	Joint Powers Board.
24.22 	This appropriation is available only to the 
24.23 	extent that each $1 of state money is matched 
24.24 	by at least $1 of local money paid to the 
24.25 	Lewis and Clark Rural Water System, Inc. 
24.26 	for each $1 of state money to be used to 
24.27 	reimburse costs incurred on eligible projects.
24.28 	This appropriation is the first phase of the 
24.29 	state share for the Lewis and Clark Rural 
24.30 	Water System, Inc. project as defined in the 
24.31 	federal Lewis and Clark Rural Water System 
24.32 	Act of 2000.

24.33 	Sec. 23. Laws 2005, chapter 156, article 2, section 46, is amended to read:
25.1 	Sec. 46. FORD BUILDING.
 25.2 	The Ford Building at 117 University Avenue in St. Paul may not be demolished 
25.3 	during the biennium ending before June 30, 2007 2008. By January 15, 2006, the 
25.4 	commissioner of administration, in consultation with interested legislators, private sector 
25.5 	real estate professionals, historic preservation specialists, and representatives of the city of 
25.6 	St. Paul, neighboring property, and St. Paul neighborhood associations, must report to the 
25.7 	legislature with recommendations regarding potential means of preserving and using the 
25.8 	Ford Building. The report must include:
25.9 	(1) availability of potential lessees for the building;
25.10 	(2) constraints on leasing the building, including the requirement to pay off any state 
25.11 	general obligation bonds previously used in maintaining or rehabilitating the building; and 
25.12 	(3) the cost of restoring and rehabilitating the building, and the feasibility of various 
25.13 	means of paying these costs, including potential use of revenue bonds.

25.14 	Sec. 24. Laws 2006, chapter 258, section 4, subdivision 4, is amended to read:

25.15	Subd. 4.MacPhail Music Center
 				5,000,000
	
25.16 	(a) For a grant to the city of Minneapolis to 
25.17 	predesign, design, construct, furnish, and 
25.18 	equip a new facility for the MacPhail Center 
25.19 	for Music. The city of Minneapolis may 
25.20 	enter into a lease or management agreement 
25.21 	to operate the center, subject to Minnesota 
25.22 	Statutes, section 16A.695. This appropriation 
25.23 	is not available until the commissioner has 
25.24 	determined that not less than $15,000,000 
25.25 	has been committed to the MacPhail Center 
25.26 	for Music from nonstate sources, and that 
25.27 	the available money is sufficient to complete 
25.28 	a functional facility. Money secured before 
25.29 	the effective date of this section may count 
25.30 	toward the required commitment of nonstate 
25.31 	sources, provided it is used for qualified 
25.32 	capital expenditures. Any land acquisition 
25.33 	costs paid by MacPhail Center for Music 
25.34 	qualify as capital expenditures.
26.1 	(b) The city of Minneapolis may provide 
26.2 	money to predesign, design, construct, 
26.3 	furnish, and equip a center for music 
26.4 	education, including classrooms and a 
26.5 	recital hall in the city of Minneapolis, 
26.6 	to provide a facility for education of 
26.7 	students, music therapy programs for 
26.8 	persons with disabilities, music teacher 
26.9 	training opportunities, curriculum and 
26.10 	program development, and to provide the 
26.11 	programming in public and private schools 
26.12 	and in partnership with other organizations 
26.13 	throughout the state.
26.14 	(c) The required demonstration of a 
26.15 	commitment of funds from nonstate sources 
26.16 	has been met by cash, prepaid qualified 
26.17 	expenses, and private multiyear pledges that 
26.18 	have been converted into cash through bond 
26.19 	financing and a letter of credit secured by 
26.20 	a mortgage lien on the state bond financed 
26.21 	property. The $5,000,000 construction grant 
26.22 	shall be disbursed without requirement that 
26.23 	the mortgage lien be released.
26.24 	(d) The commissioners of education and 
26.25 	finance shall agree to a provision in the 
26.26 	ground lease that permits the city of 
26.27 	Minneapolis to purchase for fair market 
26.28 	value, as that term is defined in Minnesota 
26.29 	Statutes, section 16A.695, subdivision 1, 
26.30 	paragraph (d), the interest of the operating 
26.31 	lease lessee in the state bond financed 
26.32 	property (based on investment in land 
26.33 	and capital improvements) in the event of 
26.34 	nonrenewal of the operating lease at the time 
26.35 	of nonrenewal without requirement of a prior 
26.36 	escrow for funds by the city of Minneapolis.

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

27.2 	Sec. 25. Laws 2006, chapter 258, section 7, subdivision 3, is amended to read:

27.3	Subd. 3.Flood Hazard Mitigation Grants 
 				25,000,000
	
27.4 	For the state share of flood hazard 
27.5 	mitigation grants for publicly owned capital 
27.6 	improvements to prevent or alleviate flood 
27.7 	damage under Minnesota  Statutes, section 
27.8 	103F.161.
27.9 	The commissioner shall determine project 
27.10 	priorities as appropriate, based on need.
27.11 	This appropriation includes money for the 
27.12 	following projects:
27.13 	(a) Austin
27.14 	(b) Albert Lea
27.15 	(c) Browns Valley
27.16 	(d) Crookston
27.17 	(d) (e) Canisteo Mine
27.18 	(e) (f) Delano 
27.19 	(f) (g) East Grand Forks
27.20 	(g) (h) Golden Valley
27.21 	(h) (i) Grand Marais Creek
27.22 	(i) (j) Granite Falls
27.23 	(j) (k) Inver Grove Heights
27.24 	(k) (l) Manston Slough
27.25 	(l) (m) Oakport Township
27.26 	(m) (n) Riverton Township
27.27 	(n) (o) Roseau
27.28 	(p) Shell Rock Watershed District
27.29 	(o) (q) St. Vincent
27.30 	(p) (r) Wild Rice River Watershed District
28.1 	For any project listed in this subdivision 
28.2 	that the commissioner determines is not 
28.3 	ready to proceed or does not expend all the 
28.4 	money allocated to it, the commissioner may 
28.5 	allocate that project's money to a project on 
28.6 	the commissioner's priority list.
28.7 	To the extent that the cost of a project in Ada, 
28.8 	Breckenridge, Browns Valley, Crookston, 
28.9 	Dawson, East Grand Forks, Granite Falls, 
28.10 	Montevideo, Oakport Township, Roseau, 
28.11 	St. Vincent, or Warren exceeds two percent 
28.12 	of the median household income in the 
28.13 	municipality multiplied by the number 
28.14 	of households in the municipality, this 
28.15 	appropriation is also for the local share of the 
28.16 	project. The local share for the St. Vincent 
28.17 	dike may not exceed $30,000.

28.18 	Sec. 26. Laws 2006, chapter 258, section 7, subdivision 7, is amended to read:

28.19	Subd.  7.Lake Superior safe harbors
 				3,000,000
	
28.20 	To design and construct capital  improvements 
28.21 	to public accesses and  small craft harbors on 
28.22 	Lake Superior in accordance with Minnesota 
28.23 	Statutes, sections 86A.20 to 86A.24, and in 
28.24 	cooperation with the United States Army 
28.25 	Corps of Engineers.
28.26 	This appropriation may be used to develop 
28.27 	the harbor of refuge and marina at Two 
28.28 	Harbors and is added to the appropriations 
28.29 	in Laws 1998, chapter 404, section 7, 
28.30 	subdivision 24; and Laws 2000, chapter 
28.31 	492, article 1, section 7,  subdivision 21, as 
28.32 	amended by Laws 2005, chapter 20, article 
28.33 	1, section 42. Notwithstanding those laws, 
28.34 	the commissioner may proceed with the Two 
29.1 	Harbors project by providing up to $625,000 
29.2 	to complete the design specifications and 
29.3 	environmental work currently underway and 
29.4 	proceed with the remaining money for the 
29.5 	project upon securing an agreement with the 
29.6 	U.S. Army Corps of Engineers that commits 
29.7 	federal expenditures of at least $4,000,000 
29.8 	to the project.

29.9 	Sec. 27. Laws 2006, chapter 258, section 7, subdivision 22, is amended to read:

29.10	Subd. 22.Regional trails
 				1,133,000
	
29.11 	For matching grants under Minnesota 
29.12 	Statutes, section 85.019, subdivision 4b.
29.13 	$648,000 is for the Agassiz Recreational 
29.14 	ATV Trail. Snowmobile trail grant money 
29.15 	received under Minnesota Statutes, section 
29.16 	84.83, subdivision 3, and all-terrain vehicle 
29.17 	trail grant money received under Minnesota 
29.18 	Statutes, section 84.927, subdivision 2, may 
29.19 	be counted as part of the county's required 50 
29.20 	percent nonstate match.
29.21 	$485,000 is for a grant to the Central 
29.22 	Minnesota Regional Parks and Trails 
29.23 	Coordination Board to design, engineer, 
29.24 	and construct 6.3 miles of trail and two 
29.25 	parking areas along the Mississippi River 
29.26 	in Sherburne County, to be known as Xcel 
29.27 	Energy Great River Woodland Trail.

29.28 	Sec. 28. Laws 2006, chapter 258, section 16, subdivision 4, is amended to read:

29.29	Subd. 4.Northstar Commuter Rail
 				60,000,000
	
29.30 	(a) To acquire land, or an interest in land, 
29.31 	and to design, construct, furnish, and equip 
29.32 	the Northstar commuter rail line serving 
29.33 	Big Lake to downtown Minneapolis and 
30.1 	to acquire land, or an interest in land, and 
30.2 	to design, construct, furnish, and equip 
30.3 	the extension of the Hiawatha light rail 
30.4 	transit line from its terminus in downtown 
30.5 	Minneapolis to a new terminus near Fifth 
30.6 	Avenue North adjacent to the proposed 
30.7 	downtown Minneapolis commuter rail 
30.8 	station.
30.9 	(b) This appropriation is added to the 
30.10 	appropriation in Laws 2005, chapter 20, 
30.11 	article 1, section 18, subdivision 5.
30.12 	(c) This appropriation is not available until 
30.13 	a full-funding grant agreement has been 
30.14 	executed with, or a letter of no prejudice 
30.15 	for a specific component of the project or 
30.16 	pre-award authority has been issued by, the 
30.17 	Federal Transit Administration.
30.18 	(d) If the Northstar commuter rail line is 
30.19 	extended from Big Lake to the St. Cloud 
30.20 	area, regional rail authority members of the 
30.21 	Northstar Corridor Development Authority 
30.22 	who did not fund a portion of the share 
30.23 	of capital costs from Minneapolis to Big 
30.24 	Lake shall contribute an amount for the 
30.25 	extension equal to the amount they would 
30.26 	have contributed for their proportional share 
30.27 	of the entire line from Minneapolis to the 
30.28 	St. Cloud area.

30.29 	Sec. 29. Laws 2006, chapter 258, section 21, subdivision 6, is amended to read:

30.30	Subd. 6.Redevelopment Account
 				9,000,000
	
30.31 	For purposes of the redevelopment account 
30.32 	under Minnesota Statutes, section 116J.571.
30.33 	$800,000 is for a grant to the city of 
30.34 	Worthington to remediate contaminated 
31.1 	soil and redevelop the site of the former 
31.2 	Campbell Soup factory. This grant is exempt 
31.3 	from the requirements of Minnesota Statutes, 
31.4 	sections 116J.572 to 116J.575.
31.5 	$250,000 is for a grant to the city of 
31.6 	Winona to predesign facilities for the 
31.7 	Shakespeare Festival as part of the riverfront 
31.8 	redevelopment plan. This grant is exempt 
31.9 	from the requirements of Minnesota Statutes, 
31.10 	sections 116J.572 to 116J.575.

31.11 	Sec. 30. Laws 2006, chapter 258, section 21, subdivision 15, is amended to read:

31.12
31.13	Subd. 15.Lewis and Clark Rural Water 
System, Inc.
 				3,282,000
3,200,000
	
31.14 	This appropriation is from the general fund 
31.15 	to the Public Facilities Authority for  grants 
31.16 	to the city of Luverne, city of Worthington 
31.17 	Public Utilities, Lincoln-Pipestone rural 
31.18 	water system, and Rock County rural water 
31.19 	system Lewis and Clark Joint Powers 
31.20 	Board to acquire land, predesign, design, 
31.21 	construct, furnish, and equip one or more
31.22 	water transmission and storage  facilities to 
31.23 	accommodate the connection with of the 
31.24 	Lewis and Clark Rural Water System, Inc. 
31.25 	that will serve southwestern Minnesota.
31.26 	The grants Payment to the Lewis and Clark 
31.27 	Rural Water System, Inc. must be awarded 
31.28 	to projects approved by the Lewis and Clark 
31.29 	Joint Powers Board.
31.30 	This appropriation is available to the extent 
31.31 	that each $1 of state money is matched by at 
31.32 	least $1 of local money paid to the Lewis and 
31.33 	Clark Rural Water System, Inc. to reimburse 
32.1 	the system for costs incurred on eligible 
32.2 	projects.

32.3 	Sec. 31. PUBLIC FACILITIES AUTHORITY FUNDING.
 32.4 	To the greatest practical extent, projects on the Public Facilities Authority's 2007 
32.5 	intended use plan, the listings for which were based on the Pollution Control Agency's 
32.6 	2006 project priority list, shall be carried over to the 2008 intended use plan. Projects that 
32.7 	qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258, 
32.8 	section 21, that could not be certified by the Pollution Control Agency by the applicable 
32.9 	deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court 
32.10 	issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to 
32.11 	obtain the required certification from the Pollution Control Agency.

32.12 	Sec. 32. EFFECTIVE DATE.
 32.13 	This article is effective the day following final enactment.

32.14 	ARTICLE 2 
32.15 	MINNESOTA BIOMEDICAL SCIENCES RESEARCH FACILITIES AUTHORITY

32.16 	Section 1. [137.61] PURPOSE.
32.17 	Sections 137.61 to 137.66 provide a framework for a biomedical science research 
32.18 	funding program to further the investment in biomedical science research facilities in the 
32.19 	state that will benefit the state's economy, advance the biomedical technology industry, 
32.20 	benefit human health, and facilitate research collaboration between the University of 
32.21 	Minnesota and other private and public institutions in the state.

32.22 	Sec. 2. [137.62] DEFINITIONS.
32.23 		Subdivision 1.Definitions. For the purposes of sections 137.61 to 137.66, the terms 
32.24 	in this section have the meanings given them.
32.25 		Subd. 2.Authority. "Authority" means the Minnesota Biomedical Science 
32.26 	Research Facilities Authority.
32.27 		Subd. 3.Biomedical science research facility. "Biomedical science research 
32.28 	facility" means a facility located in the state to be used as a research facility and laboratory 
32.29 	for biomedical science and biomedical technology. A hospital licensed under sections 
32.30 	144.50 to 144.56 is not a biomedical science research facility.
32.31 		Subd. 4.Commissioner. "Commissioner" means the commissioner of finance.
33.1 		Subd. 5.Cost. "Cost" of a project means the sum of all obligations paid, or to be 
33.2 	paid, or incurred that are reasonably required for the design, construction, and completion 
33.3 	of the project, including, but not limited to: 
33.4 	(1) site acquisition; 
33.5 	(2) soil and environmental testing, surveys, estimates, plans and specifications, 
33.6 	supervision of construction, and other engineering and architectural services; 
33.7 	(3) payment under construction contracts and for payment and performance bonds; 
33.8 	and 
33.9 	(4) purchase and installation of furniture, fixtures, and equipment.
33.10 		Subd. 6.Program. "Program" means the program authorized under section 137.65.
33.11 		Subd. 7.Project. "Project" means the acquisition, construction, improvement, 
33.12 	expansion, repair, or rehabilitation of all or any part of any structure, facility, infrastructure, 
33.13 	or equipment necessary for a biomedical science research facility.

33.14 	Sec. 3. [137.63] MINNESOTA BIOMEDICAL SCIENCE RESEARCH 
33.15 	FACILITIES AUTHORITY.
33.16 		Subdivision 1.Membership. (a) The Minnesota Biomedical Science Research 
33.17 	Facilities Authority consists of:
33.18 	(1) a public member appointed by the governor with the advice and consent of the 
33.19 	senate to serve as chair;
33.20 	(2) the chairs of the committees of the senate and house of representatives with 
33.21 	jurisdiction over capital improvements;
33.22 	(3) two members of the senate appointed by the Subcommittee on Committees of the 
33.23 	Committee on Rules and Administration; and 
33.24 	(4) two members of the house of representatives appointed by the speaker of the 
33.25 	house of representatives.
33.26 	(b) The initial appointments must be made by September 1, 2007.
33.27 		Subd. 2.Meeting by telephone or other means. (a) If compliance with section 
33.28 	13D.02 is impractical, the authority may conduct a meeting of its members by telephone 
33.29 	or other electronic means so long as the following conditions are met:
33.30 	(1) all members of the authority participating in the meeting, wherever their physical 
33.31 	location, can hear one another and can hear all discussion and testimony;
33.32 	(2) members of the public present at the regular meeting location of the authority 
33.33 	can hear clearly all discussion and testimony and all votes of members of the authority 
33.34 	and, if needed, receive those services required by sections 15.44 and 15.441;
34.1 	(3) at least one member of the authority is physically present at the regular meeting 
34.2 	location; and
34.3 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
34.4 	identified and recorded.
34.5 	(b) Each member of the authority participating in a meeting by telephone or other 
34.6 	electronic means is considered present at the meeting for purposes of determining a 
34.7 	quorum and participating in all proceedings.
34.8 	(c) If telephone or other electronic means is used to conduct a meeting, the authority, 
34.9 	to the extent practical, shall allow a person to monitor the meeting electronically from a 
34.10 	remote location. The authority may require the person making the connection to pay for 
34.11 	documented marginal costs that the authority incurs as a result of the additional connection.
34.12 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
34.13 	emergency meeting, the authority shall provide notice of the regular meeting location, 
34.14 	of the fact that some members may participate by telephone or other electronic means, 
34.15 	and of the provisions of paragraph (c). The timing and method of providing notice are 
34.16 	governed by section 13D.04.
34.17 		Subd. 3.Administrative services. The commissioner shall provide administrative 
34.18 	services to the authority, establish an annual budget for the authority, and provide an 
34.19 	evaluation of grant applications under section 137.65, subdivision 2.
34.20 		Subd. 4.In general. The authority has all the powers necessary and convenient 
34.21 	to carry out its duties under this chapter.

34.22 	Sec. 4. [137.64] RECOMMENDATIONS; IMPLEMENTATION.
34.23 	The authority shall report to the legislature by January 15 of each odd-numbered 
34.24 	year its recommendations for project grants for the coming biennium and the progress 
34.25 	made since its last report on implementing the projects approved by the legislature in 
34.26 	previous years.

34.27 	Sec. 5. [137.65] BIOMEDICAL SCIENCE RESEARCH FACILITIES FUNDING 
34.28 	PROGRAM.
34.29 		Subdivision 1.Program established. The authority shall establish a biomedical 
34.30 	science research facilities funding program to provide grants to the Board of Regents 
34.31 	of the University of Minnesota for 80 percent of the costs of projects approved under 
34.32 	subdivision 3.
35.1 		Subd. 2.Grant applications. Applications for grants for a project are to be made 
35.2 	by the Board of Regents of the University of Minnesota to the authority. To be eligible for 
35.3 	a grant under the program a project must meet the following criteria:
35.4 	(1) the University of Minnesota, either acting on its own or in collaboration with 
35.5 	another private or public institution, must pay 20 percent of the costs of the project and may 
35.6 	meet all or part of the required share of the costs of the project through the prior purchase 
35.7 	of scientific equipment and materials incident to the project provided the purchase is 
35.8 	completed not more than two years before the approval of a grant by the authority and 
35.9 	the University of Minnesota is responsible for the ongoing facilities maintenance and 
35.10 	operations of the biomedical science research facility resulting from the project;
35.11 	(2) if the application is for a project in which the University of Minnesota proposes 
35.12 	to work in collaboration with another private or public institution, the other institution 
35.13 	must be one that generates at least $75,000,000 annually in competitive federal funding 
35.14 	from the National Institute of Health, National Science Foundation, or similar agency; 
35.15 	(3) the biomedical science research facility resulting from the project will be owned 
35.16 	by the Board of Regents of the University of Minnesota; and
35.17 	(4) at a minimum the application must include the following information:
35.18 	(i) a resolution of the governing body that the required match is available and 
35.19 	committed;
35.20 	(ii) a detailed estimate, along with necessary supporting evidence, of the total cost 
35.21 	of the project;
35.22 	(iii) an assessment of the potential to attract new or continue existing public and 
35.23 	private research grant awards resulting from the project;
35.24 	(iv) a detailed facility operating financial analysis projecting the annual expected 
35.25 	revenues and costs associated with the project;
35.26 	(v) a timeline indicating the major milestones of the project and their anticipated 
35.27 	completion dates; and
35.28 	(vi) an assessment of the likelihood of public benefits from the project including 
35.29 	benefitting public health and enhancement of employment opportunities within the state, 
35.30 	stimulation of economic growth, and the potential for advancing the development of 
35.31 	commercially successful and affordable products, processes, or services.
35.32 	The factors listed are not in priority order and the authority may weigh each factor, 
35.33 	depending upon the facts and circumstances, as the authority considers appropriate.
35.34 		Subd. 3.Grant approvals. The authority shall determine for each project for 
35.35 	which an application is submitted whether it appears in the authority's judgment to 
35.36 	conform to the purposes and policies stated in section 137.61 and meets the criteria 
36.1 	stated in subdivision 2. Upon determination by the authority that a project conforms 
36.2 	to the purposes and policies stated in section 137.61 and meets the criteria stated in 
36.3 	subdivision 2, the authority may recommend to the legislature a grant under the program 
36.4 	for the project in an amount equal to 80 percent of the costs of the project. Project grants 
36.5 	recommended by the authority are approved by the legislature if legislation has not been 
36.6 	enacted to modify or reject the recommendation by March 15 of the odd-numbered year 
36.7 	the recommendation is made. Upon approval of a grant by the legislature, the Board of 
36.8 	Regents of the University of Minnesota has the power to identify project costs eligible 
36.9 	for financing by the legislature and execute all requisite certifications required for a state 
36.10 	tax-exempt debt issuance, if any. The authority may recommend to the legislature total 
36.11 	grants up to the percentage of the amount of bond proceeds authorized in section 137.66 
36.12 	for the fiscal year ending June 30 as set forth opposite each date.

36.13	Percent of Bond Proceeds
	Fiscal Year
	
36.14	16.7 percent
	2010
	
36.15	41.6 percent
	2012
	
36.16	69.3 percent
	2014
	
36.17	100.0 percent
	2016
	
36.18 		Subd. 4.Disbursements. Disbursement of grants approved by the legislature under 
36.19 	the program must be made for eligible project costs as incurred according to the project 
36.20 	grant agreement and applicable state laws governing the payment.

36.21 	Sec. 6. [137.66] BOND SALE AUTHORIZATION; APPROPRIATION.
36.22 		Subdivision 1.Issuance of bonds. To provide money for the biomedical science 
36.23 	research facilities funding program under section 137.65, the commissioner of finance 
36.24 	shall sell and issue bonds of the state in an aggregate amount up to $233,600,000 in the 
36.25 	manner, upon the terms, and with the effect prescribed by sections 16A.631 to 16A.675 
36.26 	and by the Minnesota Constitution, article XI, sections 4 to 7. Before the issuance of a 
36.27 	series of bonds, the authority shall determine that the proceeds of the series of bonds to be 
36.28 	issued will be needed to make disbursements of grants approved by the authority under the 
36.29 	program. Section 16A.642 does not apply to bonds issued under this section.
36.30 		Subd. 2.Appropriation of proceeds. The proceeds of the bonds authorized by 
36.31 	subdivision 1 are appropriated to the Minnesota Biomedical Science Research Facilities 
36.32 	Authority to be spent for the purposes set forth in section 137.65.