1.1A bill for an act1.2relating to capital improvements; appropriating money for Independent School 1.3District No. 38, Red Lake, library accessibility and improvement, Anoka 1.4prairie restoration, Alden-Conger Community Center, Northwest Hennepin 1.5Family Center, United South Central Cooperative Facilities, Rushford-Peterson 1.6Cooperative Facilities, Department of Commerce, Minnesota State Academies, 1.7and Perpich Center for Arts Education; authorizing the sale of state bonds.1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.9    Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.1.10    The sums shown in the column under "Appropriations" are appropriated from the 1.11bond proceeds fund, or another named fund, to the state agencies or officials indicated, 1.12to be spent for public purposes. Appropriations of bond proceeds must be spent as 1.13authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire 1.14and better public land and buildings and other public improvements of a capital nature, or 1.15as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or 1.16article XIV. Unless otherwise specified, the appropriations in this act are available until 1.17the project is completed or abandoned subject to Minnesota Statutes, section 16A.642.1.18    Sec. 2. PRIORITIES.1.19    Subdivision 1.General.The Education Finance Division of the House Finance 1.20Committee prioritizes the appropriations in this act as provided in this section.1.21    Subd. 2.High priorities.High priorities include: Minnesota State Academies asset 1.22preservation; Perpich Center asset preservation; Library grants; and Red Lake Secondary 1.23School maximum effort grant.2.1    Subd. 3.Medium.Medium priorities include: Minnesota State Academies Mott 2.2Hall, Pollard Day Treatment, and Frechette Hall predesign; Perpich Center master plan 2.3update and Delta Dorm windows; Northwest Hennepin Family Center; Rushford-Peterson 2.4cooperative facilities grant; and renewable energy planning grants.2.5    Subd. 4.Low.Low priorities include: Perpich Center prefab storage; 2.6Anoka-Hennepin Riverview Elementary prairie restoration; Alden-Conger Community 2.7Center; and United South Central Facility grant.

2.82.9Sec. 3. MINNESOTA DEPARTMENT OF EDUCATION

2.10Subdivision 1.Total Appropriation$86,690,000

2.11To the commissioner of education for the 2.12purposes specified in  this section.

2.132.14Subd. 2.Independent School District No. 38, Red Lake32,000,000

2.15This appropriation is from the maximum 2.16effort school loan fund for a capital loan to 2.17Independent School District No. 38, Red 2.18Lake, as provided in Minnesota Statutes, 2.19sections 126C.60 to 126C.72, to design, 2.20construct, furnish, and equip renovation of 2.21the secondary school. This appropriation is 2.22expected to complete the financing for the 2.23construction projects at the secondary school. 2.24The commissioner and Independent School 2.25District No. 38, Red Lake, shall report to 2.26the legislature by January 10, 2009, on the 2.27progress of the capital loan.

2.282.29Subd. 3.Library Accessibility and Improvement Grants10,000,000

2.30For library accessibility and improvement 2.31grants under Minnesota Statutes, section 2.32134.45.

2.33Subd. 4.Anoka Prairie Restoration240,000

3.1For a grant to Independent School District 3.2No. 11, Anoka-Hennepin, to acquire land 3.3adjacent to Riverview Elementary School 3.4and for improvements of a capital nature 3.5to develop and restore wetland and native 3.6prairie habitat on the land.

3.7Subd. 5.Alden-Conger Community Center950,000

3.8For a grant to Independent School District 3.9No. 242, Alden-Conger, to acquire land 3.10for, design, construct, furnish, and equip a 3.11multifunction facility in Alden.

3.12Subd. 6.Northwest Hennepin Family Center3,500,000

3.13For a grant to Independent School District 3.14No. 279, Osseo, to predesign, design, 3.15construct, furnish, and equip the Northwest 3.16Hennepin Family Center in Brooklyn Center. 3.17This appropriation is not available until the 3.18commissioner has determined that at least 3.19an equal amount has been committed from 3.20nonstate sources.

3.213.22Subd. 7.United South Central Cooperative Facilities Grant20,000,000

3.23For a grant to Independent School District 3.24No. 2134, United South Central, upon 3.25approval of the commissioner of education. 3.26The district does not need to comply with 3.27the timelines in Minnesota Statutes, section 3.28123A.443. The commissioner must approve 3.29or deny the grant within 60 days of its receipt.

3.303.31Subd. 8.Rushford-Peterson Cooperative Facilities Grant20,000,000

3.32For a grant to Independent School District 3.33No. 239, Rushford-Peterson, upon approval 3.34of the commissioner of education. The 3.35district does not need to comply with the 4.1timelines in Minnesota Statutes, section 4.2123A.443. The commissioner must approve 4.3or deny the grant within 60 days of its receipt.

4.4Sec. 4. DEPARTMENT OF COMMERCE

4.5Subdivision 1.Total Appropriation$5,000,000

4.6Subd. 2.Energy Grants5,000,000

4.7For renewable energy project design grants 4.8under section 8.

4.9Sec. 5. MINNESOTA STATE ACADEMIES

4.10Subdivision 1.Total Appropriation$6,317,000

4.11To the commissioner  of administration for 4.12the purposes  specified in this section.

4.13Subd. 2.Asset Preservation2,716,000

4.14For asset preservation on both campuses of 4.15the academies, to be spent in accordance with 4.16Minnesota Statutes, section 16B.307.

4.17Subd. 3.Mott Hall Renovation3,301,000

4.18To predesign, design, construct, furnish, and 4.19equip the renovation of Mott Hall.

4.20Subd. 4.Frechette Hall100,000

4.21For predesign for a new dorm to replace 4.22Frechette Hall.

4.23Subd. 5.Pollard Hall Day Treatment200,000

4.24For updates and betterments of a capital 4.25nature to facilitate a day treatment center at 4.26Pollard Hall.

4.274.28Sec. 6. PERPICH CENTER FOR ARTS EDUCATION

4.29Subdivision 1.Total Appropriation$999,000

4.30To the commissioner of administration for 4.31the purposes specified in this section.

5.1Subd. 2.Asset Preservation355,000

5.2For asset preservation at the Perpich Center 5.3for Arts Education to be spent in accordance 5.4with Minnesota Statutes, section 16B.307.

5.5Subd. 3.Master Plan206,000

5.6To update the master plan and predesign for 5.7capital project needs.

5.8Subd. 4.Delta Dorm385,000

5.9To replace windows in the Delta Dorm.

5.10Subd. 5.Prefabricated Shed53,000

5.11To install a prefabricated storage and work 5.12shed building.5.13    Sec. 7. Minnesota Statutes 2007 Supplement, section 16A.695, subdivision 3, is 5.14amended to read:5.15    Subd. 3. Sale of property.(a) A public officer or agency shall not sell any state 5.16bond financed property unless the public officer or agency determines by official action 5.17that the property is no longer usable or needed by the public officer or agency to carry 5.18out the governmental program for which it was acquired or constructed bettered, the 5.19sale is made as authorized by law, the sale is made for fair market value, and the sale is 5.20approved by the commissioner. 5.21    (b) If any state bonds issued to purchase or better the state bond financed property 5.22that is sold remain outstanding on the date of sale, the net proceeds of sale must be 5.23applied as follows:5.24    (1) if the state bond financed property was acquired and bettered solely with state 5.25bond proceeds, the net proceeds of sale must be paid to the commissioner and deposited 5.26in the state treasury; or5.27    (2) if the state bond financed property was acquired or bettered partly with state 5.28bond proceeds and partly with other money, the net proceeds of sale must be used: 5.29first, to pay to the state the amount of state bond proceeds used to acquire or better the 5.30property; second, to pay in full any outstanding public or private debt incurred to acquire 5.31or better the property; third, to pay interested public and private entities, other than any 5.32public officer or agency or any private lender already paid in full, the amount of money 5.33contributed to the acquisition or betterment of the property; and fourth, any excess over the 6.1amount needed for those purposes must be divided in proportion to the shares contributed 6.2to the acquisition or betterment of the property and paid to the interested public and 6.3private entities, other than any private lender already paid in full, and the proceeds are 6.4appropriated for this purpose. In calculating the share contributed by each entity, the 6.5amount to be attributed to the owner of the property shall be the fair market value of the 6.6property that was bettered by state bond proceeds at the time the betterment began.6.7    (c) If no state bonds issued to purchase or better the state bond financed property 6.8that is sold remain outstanding on the date of sale, the net proceeds of the sale must be 6.9applied as provided in paragraph (b) except as provided in this paragraph. If the state bond 6.10financed property was acquired or bettered partly with state bond proceeds totaling not 6.11more than $100,000, and partly with other money and was owned and directly operated 6.12and managed by a political subdivision, the net proceeds of the sale must be paid to the 6.13political subdivision and are appropriated for that purpose.6.14    (d) When all of the net proceeds of sale have been applied as provided in this 6.15subdivision, this section no longer applies to the property.6.16    Sec. 8. DESIGN FOR RENEWABLE ENERGY PROJECTS FOR K-12 6.17SCHOOLS.6.18    (a) The commissioner of commerce may make grants to school districts to pay 6.19the costs of designing renewable energy projects to generate energy used in public 6.20K-12 schools. In awarding grants, the commissioner must determine, at a minimum, 6.21the following:6.22    (1) that the physical condition of the school building is sufficient to support the 6.23efficient operation of the renewable energy project;6.24    (2) that enrollment projections for the school indicate no significant possibility that 6.25the school may close within ten years; and6.26    (3) that the projected cumulative energy savings exceed the grant amount and the 6.27corresponding debt service within 15 years.6.28    (b) For the purposes of this section, "renewable energy" means:6.29    (1) a wind energy conversion system, as defined in Minnesota Statutes, section 6.30216C.06, subdivision 19;6.31    (2) a solar energy system, as defined in Minnesota Statutes, section 216C.06, 6.32subdivision 17; or6.33    (3) a closed loop geothermal system consisting of:6.34    (i) continuous underground pipes in which a fluid circulates to transfer heat between 6.35the earth and the fluid;7.1    (ii) a heat pump to move heat between the fluid and a building; and7.2    (3) a distribution system to distribute heating or cooling throughout a building.7.3EFFECTIVE DATE.This section is effective the day following final enactment.7.4    Sec. 9. BOND SALE AUTHORIZATION.7.5    Subdivision 1.Bond proceeds fund.To provide the money appropriated in sections 7.61 to 6 from the bond proceeds fund, the commissioner of finance shall sell and issue bonds 7.7of the state in an amount up to $67,006,000 in the manner, upon the terms, and with 7.8the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the 7.9Minnesota Constitution, article XI, sections 4 to 7.7.10    Subd. 2.Maximum effort fund.To provide the money appropriated in section 3 7.11from the maximum effort school loan fund, the commissioner of finance shall sell and 7.12issue bonds of the state in an amount up to $32,000,000 in the manner, upon the terms, and 7.13with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by 7.14the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except 7.15accrued interest and any premium received on the sale of the bonds, must be credited to a 7.16bond proceeds account in the maximum effort school loan fund.7.17    Sec. 10. EFFECTIVE DATE.7.18    Except as otherwise provided, sections 1 to 9 are effective the day following final 7.19enactment.