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 
1.5 	programs; authorizing the sale of state bonds; repealing and modifying previous 
1.6 	appropriations; appropriating money;amending Minnesota Statutes 2008, 
1.7 	sections 16A.641, subdivisions 4, 7; 16A.66, subdivision 2; 16A.86, subdivision 
1.8 	2, by adding a subdivision; 85.015, by adding a subdivision; 134.45, by adding 
1.9 	a subdivision; 135A.046, subdivision 2; 174.03, subdivision 1b; 174.88, 
1.10 	subdivision 2; Laws 2005, chapter 20, article 1, section 23, subdivision 16, as 
1.11 	amended; Laws 2006, chapter 258, sections 20, subdivision 7; 21, subdivisions 
1.12 	5, 6, as amended; 23, subdivision 3, as amended; Laws 2008, chapter 179, 
1.13 	section 3, subdivisions 12, as amended, 21, 25; proposing coding for new law in 
1.14 	Minnesota Statutes, chapters 16A; 84; 174; 473; repealing Minnesota Statutes 
1.15 	2008, sections 16A.86, subdivision 3; 116.156; 473.399, subdivision 4; Laws 
1.16 	2008, chapter 179, section 8, subdivision 3.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

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

1.27	SUMMARY
	
1.28	University of Minnesota
	$
	23,000,000
	
1.29	Minnesota State Colleges and Universities
		67,905,000
	
2.1	Education
		5,780,000
	
2.2	Natural Resources
		13,700,000
	
2.3	Board of Water and Soil Resources
		1,000,000
	
2.4	Rural Finance Authority
		35,000,000
	
2.5	Zoological Garden
		4,000,000
	
2.6	Military Affairs
		3,602,000
	
2.7	Transportation
		29,500,000
	
2.8	Metropolitan Council
		21,000,000
	
2.9	Human Services
		24,000,000
	
2.10	Veterans Affairs
		7,138,000
	
2.11	Corrections
		5,000,000
	
2.12	Employment and Economic Development
		700,000
	
2.13	Housing Finance Agency
		4,000,000
	
2.14	Minnesota Historical Society
		2,065,000
	
2.15	Bond Sale Expenses
		245,000

2.16	TOTAL
	$
	247,635,000
	
2.17	Bond Proceeds Fund (General Fund Debt Service)
		183,220,000
	
2.18	Bond Proceeds Fund (User Financed Debt Service)
		47,635,000
	
2.19	Maximum Effort School Loan Fund
		5,780,000
	
2.20	State Transportation Fund
		11,000,000

2.21						APPROPRIATIONS

2.22	Sec. 2. UNIVERSITY OF MINNESOTA

2.23	Subdivision 1.Total Appropriation
 			$
	23,000,000
	
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)
 				20,000,000
	
2.29 	To be spent in accordance with Minnesota 
2.30 	Statutes, section 135A.046. 

2.31	Subd. 3.Morris

2.32
2.33	National Solar Testing and Certification 
Laboratory
				3,000,000
	
2.34 	For the initiative for renewable energy 
2.35 	and the environment to design, construct, 
2.36 	furnish, and equip a national solar testing 
3.1 	and certification laboratory to test, rate, and 
3.2 	certify the performance of equipment and 
3.3 	devices that utilize solar energy for heating 
3.4 	and cooling air and water and for generating 
3.5 	electricity.

3.6
3.7	Sec. 3. MINNESOTA STATE COLLEGES 
AND UNIVERSITIES

3.8	Subdivision 1.Total Appropriation
 			$
	67,905,000
	
3.9 	To the Board of Trustees of the Minnesota 
3.10 	State Colleges and Universities for the 
3.11 	purposes specified in this section.

3.12
3.13	Subd. 2.Higher Education Asset Preservation 
And Replacement (HEAPR)
 				30,000,000
	
3.14 	For the purposes specified in Minnesota 
3.15 	Statutes, section 135A.046, including safety 
3.16 	and statutory compliance, building envelope 
3.17 	integrity, mechanical systems, and space 
3.18 	restoration.

3.19
3.20	Subd. 3.Lake Superior Community and 
Technical College

3.21	Health and Science Center Addition
				11,000,000
	
3.22 	To complete design of and to construct, 
3.23 	furnish, and equip an addition to the Health 
3.24 	and Science Center and to renovate existing 
3.25 	spaces.

3.26
3.27	Subd. 4.Mesabi Range Community and 
Technical College, Eveleth

3.28
3.29	Carpentry and Industrial Mechanical 
Technology and Shops
				5,000,000
	
3.30 	To construct, furnish, and equip shop space 
3.31 	for the industrial mechanical technology 
3.32 	and carpentry programs. This appropriation 
3.33 	includes funding for renovation of existing 
3.34 	space for ADA compliance.

4.1	Subd. 5.Metropolitan State University

4.2	Smart Classroom Center
				4,980,000
	
4.3 	To construct, furnish, and equip renovation 
4.4 	of two floors of technology-enhanced 
4.5 	classrooms and academic offices in the power 
4.6 	plant building. This appropriation includes 
4.7 	money to demolish the power plant annex to 
4.8 	enable the new construction. 

4.94.10
	Subd. 6.Minnesota State College, Southeast 
Technical - Aviation Training Center
 					
4.11 	Notwithstanding Minnesota Statutes, section 
4.12 	136F.60, subdivision 5, the net proceeds 
4.13 	of the sale or disposition of the Aviation 
4.14 	Training Center in Winona operated by 
4.15 	Minnesota State College - Southeast 
4.16 	Technical, after paying all expenses incurred 
4.17 	in selling the property and retiring any 
4.18 	remaining debt attributable to the project, 
4.19 	are appropriated to the board of trustees 
4.20 	of the Minnesota State Colleges and 
4.21 	Universities for use in a capital project at the 
4.22 	Winona campus and need not be paid to the 
4.23 	commissioner of finance, as would otherwise 
4.24 	be required by Minnesota Statutes, section 
4.25 	16A.695, subdivision 3.
4.26 	When the sale is complete and the sale 
4.27 	proceeds have been applied as provided in 
4.28 	this subdivision, Minnesota Statutes, section 
4.29 	16A.695, no longer applies to the property 
4.30 	and the property is no longer state bond 
4.31 	financed property.

4.32	Subd. 7.North Hennepin Community College

4.33	Center for Business and Technology 
				13,300,000
	
5.1 	To construct, furnish, and equip an addition 
5.2 	to the Center for Business and Technology 
5.3 	and to renovate the center for classrooms and 
5.4 	related space.

5.5	Subd. 8. Systemwide Initiatives 

5.6	Classroom Renovation
				3,625,000
	
5.7 	To design, construct, furnish, and equip 
5.8 	renovation of classroom and academic 
5.9 	space. Campuses may use nonstate money 
5.10 	to increase the size of the projects. This 
5.11 	appropriation may be used only at the 
5.12 	following campuses: Central Lakes College, 
5.13 	Brainerd; Minnesota State Community 
5.14 	Technical College, Moorhead and Wadena; 
5.15 	Minnesota West Community Technical 
5.16 	College, Pipestone; Northland Community 
5.17 	Technical College, Thief River Falls; Pine 
5.18 	Technical College, Pine City; and Rochester 
5.19 	Community Technical College, Rochester.

5.20	Subd. 9.Debt Service
 					
5.21 	(a) The board shall pay the debt service on 
5.22 	one-third of the principal amount of state 
5.23 	bonds sold to finance projects authorized by 
5.24 	this section, except for higher education asset 
5.25 	preservation and replacement, and except 
5.26 	that, where a nonstate match is required, the 
5.27 	debt service is due on a principal amount 
5.28 	equal to one-third of the total project cost, 
5.29 	less the match committed before the bonds 
5.30 	are sold. After each sale of general obligation 
5.31 	bonds, the commissioner of finance shall 
5.32 	notify the board of the amounts assessed for 
5.33 	each year for the life of the bonds.
6.1 	(b) The commissioner shall reduce the 
6.2 	board's assessment each year by one-third of 
6.3 	the net income from investment of general 
6.4 	obligation bond proceeds in proportion to the 
6.5 	amount of principal and interest otherwise 
6.6 	required to be paid by the board. The board 
6.7 	shall pay its resulting net assessment to the 
6.8 	commissioner of finance by December 1 each 
6.9 	year. If the board fails to make a payment 
6.10 	when due, the commissioner of finance 
6.11 	shall reduce allotments for appropriations 
6.12 	from the general fund otherwise available 
6.13 	to the board and apply the amount of the 
6.14 	reduction to cover the missed debt service 
6.15 	payment. The commissioner of finance 
6.16 	shall credit the payments received from the 
6.17 	board to the bond debt service account in 
6.18 	the state bond fund each December 1 before 
6.19 	money is transferred from the general fund 
6.20 	under Minnesota Statutes, section 16A.641, 
6.21 	subdivision 10.

6.22	Subd. 10.Unspent Appropriations
 					
6.23 	(a) Upon substantial completion of a project 
6.24 	authorized in this section and after written 
6.25 	notice to the commissioner of finance, the 
6.26 	Board of Trustees must use any money 
6.27 	remaining in the appropriation for that 
6.28 	project for HEAPR under Minnesota 
6.29 	Statutes, section 135A.046. The Board 
6.30 	of Trustees must report by February 1 of 
6.31 	each even-numbered year to the chairs 
6.32 	of the house and senate committees with 
6.33 	jurisdiction over capital investment and 
6.34 	higher education finance, and to the chairs of 
6.35 	the house Ways and Means Committee and 
7.1 	the senate Finance Committee, on how the 
7.2 	remaining money has been allocated or spent.
7.3 	(b) The unspent portion of an appropriation 
7.4 	for a project in this section that is complete, 
7.5 	is available for higher education asset 
7.6 	preservation and replacement under this 
7.7 	subdivision, at the same campus as the 
7.8 	project for which the original appropriation 
7.9 	was made, and the debt service requirement 
7.10 	under subdivision 8 is reduced accordingly. 
7.11 	Minnesota Statutes, section 16A.642, applies 
7.12 	from the date of the original appropriation to 
7.13 	the unspent amount transferred. 

7.14	Sec. 4. EDUCATION

7.15	Independent School District No. 38, Red Lake
			$
	5,780,000
	
7.16 	From the maximum effort school loan fund to 
7.17 	the commissioner of education for a capital 
7.18 	loan to Independent School District No. 38, 
7.19 	Red Lake, as provided in Minnesota Statutes, 
7.20 	sections 126C.60 to 126C.72, to design, 
7.21 	construct, furnish, and equip renovation of 
7.22 	existing facilities and construction of new 
7.23 	facilities.
7.24 	The project paid for with this appropriation 
7.25 	includes a portion of the renovation and 
7.26 	construction identified as Phase 4 in the 
7.27 	review and comment performed by the 
7.28 	commissioner of education under the capital 
7.29 	loan provisions of Minnesota Statutes, 
7.30 	section 126C.69. This portion includes 
7.31 	renovation and construction of a single 
7.32 	kitchen and cafeteria to serve the high school 
7.33 	and middle school, a receiving area and dock, 
7.34 	and adjacent drives, utilities, and grading.
8.1 	Before any capital loan contract is approved 
8.2 	under this authorization, the district must 
8.3 	provide documentation acceptable to the 
8.4 	commissioner on how the capital loan will 
8.5 	be used.

8.6	Sec. 5. NATURAL RESOURCES

8.7	Subdivision 1.Total Appropriation
 			$
	13,700,000
	
8.8 	To the commissioner of natural resources 
8.9 	for the purposes specified in this section. 
8.10 	The commissioner must allocate money 
8.11 	appropriated in this section so as to maximize 
8.12 	the use of all available federal money from 
8.13 	the American Recovery and Reinvestment 
8.14 	Act of 2009, Public Law 111-5, and any other 
8.15 	federal funding.
8.16 	The appropriations in this section are 
8.17 	subject to the requirements of the natural 
8.18 	resources capital improvement program 
8.19 	under Minnesota Statutes, section 86A.12, 
8.20 	unless this section or the statutes referred 
8.21 	to in this section provide more specific 
8.22 	standards, criteria, or priorities for projects 
8.23 	than Minnesota Statutes, section 86A.12.
8.24 	To the extent possible, any prairie restoration 
8.25 	conducted with money appropriated in this 
8.26 	section must plant vegetation or sow seed 
8.27 	only of ecotypes native to Minnesota, and 
8.28 	preferably of the local ecotype, using a high 
8.29 	diversity of species originating from as 
8.30 	close to the restoration site as possible, and 
8.31 	protect existing native prairies from genetic 
8.32 	contamination.

8.33	Subd. 2.Statewide Asset Preservation
 				1,000,000
	
9.1 	For the renovation of state-owned facilities 
9.2 	operated by the commissioner of natural 
9.3 	resources that can be substantially completed 
9.4 	in calendar year 2009, as determined by 
9.5 	the commissioner of natural resources, 
9.6 	including renovation of buildings for energy 
9.7 	efficiency, roof replacements, replacement 
9.8 	of well and water treatment systems, road 
9.9 	resurfacing, major culvert replacement and 
9.10 	erosion control, water access rehabilitation, 
9.11 	trail resurfacing and widening, and bridge 
9.12 	replacement and rehabilitation.

9.13	Subd. 3.Flood Hazard Mitigation Grants
 				12,700,000
	
9.14 	For the state share of flood hazard 
9.15 	mitigation grants for publicly owned capital 
9.16 	improvements to prevent or alleviate flood 
9.17 	damage under Minnesota  Statutes, section 
9.18 	103F.161. 
9.19 	This appropriation includes money to 
9.20 	maximize federal funds for projects in Ada, 
9.21 	Breckenridge, and Roseau. Any remaining 
9.22 	money from this appropriation is for the 
9.23 	following projects as prioritized by the 
9.24 	commissioner based on need:
9.25 	(a) Agassiz Valley
9.26 	(b) Albert Lea
9.27 	(c) Austin
9.28 	(d) Bois de Sioux Watershed District, North 
9.29 	Ottawa project
9.30 	(e) Crookston 
9.31 	(f) Granite Falls
9.32 	(g) Hay Creek-Norland
9.33 	(h) Inver Grove Heights
10.1 	(i) Manston Slough
10.2 	(j) Oakport Township
10.3 	(k) Shell Rock River Watershed
10.4 	(l) Spring Brook
10.5 	(m) St. Vincent
10.6 	(n) Two Rivers
10.7 	For any project listed in this subdivision 
10.8 	that the commissioner determines is not 
10.9 	ready to proceed or does not expend all the 
10.10 	money allocated to it, the commissioner may 
10.11 	allocate that project's money to a project on 
10.12 	the commissioner's priority list. 
10.13 	To the extent that the cost of a project in 
10.14 	Ada, Breckenridge, Crookston, Granite Falls, 
10.15 	Oakport Township, St. Vincent, or Roseau 
10.16 	exceeds two percent of the median household 
10.17 	income in the municipality multiplied by the 
10.18 	number of households in the municipality, 
10.19 	this appropriation is also for the local share 
10.20 	of the project.

10.21
10.22	Sec. 6. BOARD OF WATER AND SOIL 
RESOURCES

10.23	RIM Conservation Reserve
			$
	1,000,000
	
10.24 	To the Board of Water and Soil Resources 
10.25 	to acquire conservation easements from 
10.26 	landowners to preserve, restore, create, 
10.27 	and enhance wetlands, restore and enhance 
10.28 	rivers and streams, riparian lands, and 
10.29 	associated uplands in order to protect 
10.30 	soil and water quality, support fish and 
10.31 	wildlife habitat, reduce flood damages, 
10.32 	and other public benefits. The board must 
10.33 	allocate money appropriated in this section 
11.1 	so as to maximize the use of available 
11.2 	federal funds. The provisions of Minnesota 
11.3 	Statutes, section 103F.515, apply to this 
11.4 	appropriation, except that the board may 
11.5 	establish alternative payment rates for 
11.6 	easements and practices to establish restored 
11.7 	native prairies and  to protect uplands. To 
11.8 	the extent possible, prairie restorations 
11.9 	conducted with money appropriated in this 
11.10 	section must plant vegetation or sow seed 
11.11 	only of ecotypes native to Minnesota, and 
11.12 	preferably of the local ecotype, using a high 
11.13 	diversity of species originating from as 
11.14 	close to the restoration site as possible, and 
11.15 	protect existing native prairies from genetic 
11.16 	contamination. Of this appropriation, up  to 
11.17 	ten percent may be used to implement the 
11.18 	program.

11.19	Sec. 7. RURAL FINANCE AUTHORITY.
 			$
	35,000,000
	
11.20 	For the purposes set forth in the Minnesota 
11.21 	Constitution, article XI, section 5, paragraph 
11.22 	(h). To the Rural Finance Authority to 
11.23 	purchase participation interests in or to 
11.24 	make direct agricultural loans to farmers 
11.25 	under Minnesota Statutes, chapter 41B. 
11.26 	This appropriation is for the beginning 
11.27 	farmer program under Minnesota Statutes, 
11.28 	section 41B.039; the loan restructuring 
11.29 	program under Minnesota Statutes, section 
11.30 	41B.04; the seller-sponsored program under 
11.31 	Minnesota Statutes, section 41B.042; the 
11.32 	agricultural improvement loan program 
11.33 	under Minnesota Statutes, section 41B.043; 
11.34 	and the livestock expansion loan program 
11.35 	under Minnesota Statutes, section 41B.045. 
12.1 	All debt service on bond proceeds used to 
12.2 	finance this appropriation must be repaid 
12.3 	by the Rural Finance Authority under 
12.4 	Minnesota Statutes, section 16A.643. Loan 
12.5 	participations must be priced to provide full 
12.6 	interest and principal coverage and a reserve 
12.7 	for potential losses. Priority for loans must 
12.8 	be given first to basic beginning farmer loans, 
12.9 	second to seller-sponsored loans, and third to 
12.10 	agricultural improvement loans.

12.11
12.12	Sec. 8. MINNESOTA ZOOLOGICAL 
GARDEN

12.13	Asset Preservation and Improvement
			$
	4,000,000
	
12.14 	To the Minnesota Zoological Garden 
12.15 	to design and construct capital asset 
12.16 	preservation improvements and betterments 
12.17 	to infrastructure and exhibits at the Minnesota 
12.18 	Zoo.

12.19	Sec. 9. MILITARY AFFAIRS

12.20	Asset Preservation
			$
	3,602,000
	
12.21 	To the adjutant general for asset preservation 
12.22 	improvements and betterments of a capital 
12.23 	nature at military affairs facilities, to be 
12.24 	spent in accordance with Minnesota Statutes, 
12.25 	section 16B.307. The adjutant general must 
12.26 	allocate money appropriated in this section 
12.27 	so as to maximize the use of all available 
12.28 	federal funding.
12.29 	This appropriation may be used for life safety 
12.30 	improvements, to correct code deficiencies, 
12.31 	for Americans with Disabilities Act 
12.32 	alterations, and to improve energy efficiency 
12.33 	at existing National Guard Training and 
12.34 	Community Centers at Hastings, Hutchinson, 
13.1 	Red Wing, and Winona; and to match 
13.2 	federal stimulus money for backup heating 
13.3 	and electricity improvements at Bemidji, 
13.4 	Brainerd, Duluth, Inver Grove Heights, 
13.5 	Jackson, Northeast Minneapolis, Rosemount, 
13.6 	and St. Peter.

13.7	Sec. 10. TRANSPORTATION

13.8	Subdivision 1.Total Appropriation
 			$
	29,500,000
	
13.9 	To the commissioner of transportation 
13.10 	for the purposes specified in this section. 
13.11 	The commissioner must allocate money 
13.12 	appropriated in this section so as to maximize 
13.13 	the use of all available federal money from 
13.14 	the American Recovery and Reinvestment 
13.15 	Act of 2009, Public Law 111-5, and any other 
13.16 	federal funding.

13.17
13.18	Subd. 2.Local Bridge Replacement and 
Rehabilitation
 				11,000,000
	
13.19 	This appropriation is from the bond proceeds 
13.20 	account in the state transportation fund 
13.21 	to match federal money and to replace 
13.22 	or rehabilitate local deficient bridges as 
13.23 	provided in Minnesota Statutes, section 
13.24 	174.50.
13.25 	Political subdivisions may use grants made 
13.26 	under this subdivision to construct or 
13.27 	reconstruct bridges, including: 
13.28 	(1) matching federal-aid grants to construct 
13.29 	or reconstruct key bridges;
13.30 	(2) paying the costs of preliminary 
13.31 	engineering and environmental studies 
13.32 	authorized under Minnesota Statutes, section 
13.33 	174.50, subdivision 6a;
14.1 	(3) paying the costs to abandon an existing 
14.2 	bridge that is deficient and in need of 
14.3 	replacement, but where no replacement will 
14.4 	be made; and
14.5 	(4) paying the costs to construct a road 
14.6 	or street to facilitate the abandonment 
14.7 	of an existing bridge determined by 
14.8 	the commissioner to be deficient, if the 
14.9 	commissioner determines that construction 
14.10 	of the road or street is more economical than 
14.11 	replacement of the existing bridge.

14.12	Subd. 3.Rail Service Improvement
 				3,000,000
	
14.13 	For the rail service improvement program 
14.14 	to be spent for the purposes set forth 
14.15 	in Minnesota Statutes, section 222.50, 
14.16 	subdivision 7.

14.17
14.18	Subd. 4.Commuter and Passenger Rail 
Corridor Projects
 				7,500,000
	
14.19 	To implement capital improvements and 
14.20 	betterments for commuter and passenger rail 
14.21 	projects identified in the statewide freight 
14.22 	and passenger rail plan, under Minnesota 
14.23 	Statutes, section 174.03, subdivision 1b.

14.24
14.25	Subd. 5.Minnesota Valley Railroad Track 
Rehabilitation
 				5,000,000
	
14.26 	For a grant to the Minnesota Valley Regional 
14.27 	Railroad Authority to rehabilitate up to 95 
14.28 	miles of railroad track from Norwood-Young 
14.29 	America to Hanley Falls. A grant under this 
14.30 	subdivision is in addition to any grant, loan, 
14.31 	or loan guarantee for this project made by 
14.32 	the commissioner under Minnesota Statutes, 
14.33 	sections 222.46 to 222.62.

14.34	Subd. 6.Port Development Assistance
 				3,000,000
	
15.1 	For grants under Minnesota Statutes, chapter 
15.2 	457A. Any improvements made with the 
15.3 	proceeds of these grants must be publicly 
15.4 	owned.

15.5	Sec. 11. METROPOLITAN COUNCIL

15.6	Transit Capital Improvement Program
			$
	21,000,000
	
15.7 	To the Metropolitan Council:
15.8 	(a) to implement capital improvements 
15.9 	and betterments identified in the council's 
15.10 	transit capital improvement program 
15.11 	under Minnesota Statutes, section 
15.12 	473.3992, including acquisition of land 
15.13 	and right-of-way, design, preliminary 
15.14 	engineering, environmental analysis and 
15.15 	mitigation, engineering, and construction; 
15.16 	and
15.17 	(b) for capital improvements to facilities for 
15.18 	which federal funding is available.
15.19 	The council must allocate money 
15.20 	appropriated in this section so as to maximize 
15.21 	the use of all available federal money from 
15.22 	the American Recovery and Reinvestment 
15.23 	Act of 2009, Public Law 111-5, and any other 
15.24 	available federal funds.

15.25	Sec. 12. HUMAN SERVICES

15.26	Subdivision 1.Total Appropriation
 			$
	24,000,000
	
15.27 	To the commissioner of administration, or 
15.28 	another named agency, for the purposes 
15.29 	specified in this section. The commissioner 
15.30 	must allocate money appropriated in this 
15.31 	section so as to maximize the use of all 
15.32 	available federal funding.

15.33	Subd. 2.Asset Preservation
 				2,000,000
	
16.1 	For asset preservation improvements and 
16.2 	betterments of a capital nature at Department 
16.3 	of Human Services facilities statewide, in 
16.4 	accordance with Minnesota Statutes, section 
16.5 	16B.307.

16.6
16.7	Subd. 3.Minnesota Sex Offender Program 
Moose Lake Expansion
 				20,000,000
	
16.8 	For infrastructure for phase 2 of the 
16.9 	expansion of the Moose Lake Sex Offender 
16.10 	Treatment Facility.

16.11
16.12	Subd. 4.Early Childhood Learning and Child 
Protection Facilities
 				2,000,000
	
16.13 	To the commissioner of human services for 
16.14 	grants to construct and rehabilitate facilities 
16.15 	for programs under Minnesota Statutes, 
16.16 	section 256E.37.

16.17	Sec. 13. VETERANS AFFAIRS

16.18	Subdivision 1.Total Appropriation
 			$
	7,138,000
	
16.19 	To the commissioner of administration 
16.20 	for the purposes specified in this section. 
16.21 	The commissioner must allocate money 
16.22 	appropriated in this section so as to maximize 
16.23 	the use of all available federal funding.

16.24	Subd. 2.Asset Preservation
 				2,138,000
	
16.25 	For asset preservation improvements and 
16.26 	betterments of a capital nature at veterans 
16.27 	homes statewide, to be spent in accordance 
16.28 	with Minnesota Statutes, section 16B.307. 
16.29 	Of this, $600,000 is for HVAC replacement 
16.30 	and foundation waterproofing in building 
16.31 	4 at the Minneapolis Veterans Home, and 
16.32 	$350,000 is for roof replacement projects at 
16.33 	the Hastings Veterans Home.

17.1
17.2	Subd. 3.Veterans Residential Mental Health 
Nursing Facility, Kandiyohi County
 				5,000,000
	
17.3 	To design, construct, furnish, and equip 
17.4 	a 90-bed facility in Kandiyohi County to 
17.5 	provide residential mental health nursing 
17.6 	services to veterans, as described in section 
17.7 	47. This appropriation is not available until 
17.8 	the commissioner determines that sufficient 
17.9 	funds to complete the project have been 
17.10 	committed from nonstate sources. 

17.11	Sec. 14. CORRECTIONS
 			$
	5,000,000
	
17.12 	To the commissioner of administration for 
17.13 	improvements and betterments of a capital 
17.14 	nature at Minnesota correctional facilities 
17.15 	statewide, in accordance with Minnesota 
17.16 	Statutes, section 16B.307.

17.17
17.18	Sec. 15. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

17.19	Redevelopment Account
			$
	700,000
	
17.20 	To the commissioner of employment and 
17.21 	economic development for the purposes of 
17.22 	the redevelopment account under Minnesota 
17.23 	Statutes, section 116J.571.

17.24	Sec. 16. HOUSING FINANCE AGENCY
 			$
	4,000,000
	
17.25 	To the Housing Finance Agency for the 
17.26 	purposes of financing the rehabilitation costs 
17.27 	to preserve public housing. For purposes of 
17.28 	this section, "public housing" is housing for 
17.29 	low-income persons and households financed 
17.30 	by the federal government and owned and 
17.31 	operated by public housing authorities and 
17.32 	agencies. Eligible public housing authorities 
17.33 	must have a public housing assessment 
18.1 	system rating of standard or above. Priority 
18.2 	must be given to proposals that maximize 
18.3 	federal or local resources to finance the 
18.4 	capital costs.

18.5
18.6	Sec. 17. MINNESOTA HISTORICAL 
SOCIETY

18.7	Historic Sites Asset Preservation
			$
	2,065,000
	
18.8 	To the Minnesota  Historical Society for 
18.9 	capital improvements and  betterments at 
18.10 	state historic sites, buildings, landscaping 
18.11 	at historic buildings, exhibits, markers, 
18.12 	and monuments, to be spent in accordance 
18.13 	with Minnesota Statutes, section 16B.307. 
18.14 	Notwithstanding that section, up to $527,000 
18.15 	may be used to design projects eligible for 
18.16 	future funding. The society shall determine 
18.17 	project priorities as appropriate based on 
18.18 	need.

18.19	Sec. 18. BOND SALE EXPENSES
 			$
	245,000
	
18.20 	To the commissioner of finance for bond sale 
18.21 	expenses under Minnesota Statutes, section 
18.22 	16A.641, subdivision 8.

18.23	Sec. 19. BOND SALE SCHEDULE.
 					
18.24 	The commissioner of finance shall schedule the sale of state general obligation 
18.25 	bonds so that, during the biennium ending June 30, 2011, no more than $1,074,985,000 
18.26 	will need to be transferred from the general fund to the state bond fund to pay principal 
18.27 	and interest due and to become due on outstanding state general obligation bonds. During 
18.28 	the biennium, before each sale of state general obligation bonds, the commissioner of 
18.29 	finance shall calculate the amount of debt service payments needed on bonds previously 
18.30 	issued and shall estimate the amount of debt service payments that will be needed on the 
18.31 	bonds scheduled to be sold. The commissioner shall adjust the amount of bonds scheduled 
18.32 	to be sold so as to remain within the limit set by this section. The amount needed to make 
19.1 	the debt service payments is appropriated from the general fund as provided in Minnesota 
19.2 	Statutes, section 16A.641.

19.3 	Sec. 20. BOND SALE AUTHORIZATION.
 19.4 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act 
19.5 	from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the 
19.6 	state in an amount up to $230,855,000 in the manner, upon the terms, and with the effect 
19.7 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
19.8 	Constitution, article XI, sections 4 to 7.
19.9 		Subd. 2.Maximum effort school loan fund. To provide the money appropriated in 
19.10 	this act from the maximum effort school loan fund, the commissioner of finance shall sell 
19.11 	and issue bonds of the state in an amount up to $5,780,000 in the manner, upon the terms, 
19.12 	and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by 
19.13 	the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except 
19.14 	accrued interest and any premium received on the sale of the bonds, must be credited to a 
19.15 	bond proceeds account in the maximum effort school loan fund.
19.16 		Subd. 3.Transportation fund bond proceeds account. To provide the money 
19.17 	appropriated in this act from the state transportation fund, the commissioner of finance 
19.18 	shall sell and issue bonds of the state in an amount up to $11,000,000 in the manner, upon 
19.19 	the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 
19.20 	16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of 
19.21 	the bonds, except accrued interest and any premium received on the sale of the bonds, 
19.22 	must be credited to a bond proceeds account in the state transportation fund.

19.23 	Sec. 21. Minnesota Statutes 2008, section 16A.641, subdivision 4, is amended to read:
19.24 		Subd. 4.Sale and issuance. State bonds must may be sold and issued upon 
19.25 	competitive bids at public or negotiated sale in the manner and on the terms and conditions 
19.26 	determined by the commissioner in accordance with the laws authorizing them and 
19.27 	subject to the approval of the attorney general, but not subject to chapter 14, including 
19.28 	section 14.386. For each series, in addition to provisions required by subdivision 3, the 
19.29 	commissioner may determine: 
19.30 	(1) the time, place, and form of notice of sale and for competitive bids and requests 
19.31 	for proposals for negotiated sales;
19.32 	(2) method of comparing bids;
19.33 	(2) (3) the price, not less than par for highway bonds;
19.34 	(3) (4) the principal amount and date of issue;
20.1 	(4) (5) the interest rates and payment dates;
20.2 	(5) (6) the maturity amounts and dates, not more than 20 years from the date of 
20.3 	issue, subject to subdivision 5;
20.4 	(6) (7) the terms, if any, on which the bonds may or must be redeemed before 
20.5 	maturity, including notice, times, and redemption prices; and
20.6 	(7) (8) the form of the bonds and the method of execution, delivery, payment, 
20.7 	registration, conversion, and exchange, in accordance with section 16A.672. 

20.8 	Sec. 22. Minnesota Statutes 2008, section 16A.641, subdivision 7, is amended to read:
20.9 		Subd. 7.Credit of proceeds. (a) Proceeds of bonds issued under each law must be 
20.10 	credited by the commissioner to a special fund, as provided in this subdivision.
20.11 	(b) Accrued interest and any premium received on sale of the bonds must be credited 
20.12 	to the state bond fund created by the Constitution, article XI, section 7. Premium received 
20.13 	on the sale of the bonds must be credited either to the state bond fund or to the bond 
20.14 	proceeds fund where it is used to reduce the par amount of the bonds issued. Premium 
20.15 	may only be credited to the bond proceeds fund and used to reduce the par amount if it 
20.16 	does not cause an increase in the general fund debt service transfer for the biennium 
20.17 	during which the bonds are sold, as estimated by the commissioner.
20.18 	(c) Except as otherwise provided by law, proceeds of state bonds issued under the 
20.19 	Constitution, article XI, section 5, clause (a), must be credited to the bond proceeds fund 
20.20 	established by section 16A.631. 
20.21 	(d) Proceeds of state highway bonds must be credited to the trunk highway fund 
20.22 	under the Constitution, article XIV, section 6.
20.23 	(e) Proceeds of bonds issued for programs of grants or loans to political subdivisions 
20.24 	must be credited to special accounts in the bond proceeds fund or to special funds 
20.25 	established by laws stating the purposes of the grants or loans, and the standards and 
20.26 	criteria under which an executive agency is authorized to make them.
20.27 	(f) Proceeds of refunding bonds must be credited to the state bond fund as provided 
20.28 	in section 16A.66, subdivision 1. 
20.29 	(g) Proceeds of other bonds must be credited as provided in the law authorizing 
20.30 	their issuance.

20.31 	Sec. 23. [16A.6455] MINNESOTA FIRST BONDS.
20.32 		Subdivision 1.Program established. The commissioner of finance may establish 
20.33 	the Minnesota first bond program to encourage individuals to invest in state general 
20.34 	obligation bonds. The program consists of:
21.1 	(1) issuing a portion of the state general obligation bonds in denominations and 
21.2 	maturities that will be attractive to individuals; and
21.3 	(2) developing a program for marketing the bonds to investors.
21.4 		Subd. 2.Denominations. The commissioner shall determine the appropriate 
21.5 	denominations and maturities for the Minnesota first bonds. It is the intent of the 
21.6 	legislature to make bonds available in as small denominations as is feasible given the 
21.7 	costs of marketing and administering the bond issue. Minimum denominations of $1,000 
21.8 	must be made available. The minimum denomination bonds need not be made available 
21.9 	for bonds of all maturities. If a zero coupon bond is sold, "denomination" means the 
21.10 	compounded maturity amount of the bond.
21.11 		Subd. 3.Direct sale permitted. The commissioner may sell any series of savings 
21.12 	bonds directly to the public or to financial institutions for prompt resale to the public 
21.13 	upon the terms and conditions and the restrictions the commissioner prescribes. The 
21.14 	commissioner may enter into all contracts deemed necessary or desirable to accomplish 
21.15 	the sale in a cost-effective manner including a private or negotiated sale, but the 
21.16 	commissioner may contract for investment banking and banking services only after 
21.17 	receiving competitive proposals for the services.
21.18 		Subd. 4.Marketing plan. The commissioner shall develop a plan for marketing 
21.19 	Minnesota first bonds. The plan must include strategies to:
21.20 	(1) inform the public about the availability of the bonds;
21.21 	(2) take orders for the bonds;
21.22 	(3) target the sale of the bonds to Minnesota residents; and
21.23 	(4) market the bonds at the lowest cost to the state.

21.24 	Sec. 24. Minnesota Statutes 2008, section 16A.66, subdivision 2, is amended to read:
21.25 		Subd. 2.Special provisions for sale and issuance. Refunding bonds may be sold 
21.26 	publicly at public or negotiated sale, or directly to the State Board of Investment without 
21.27 	bids, or may be exchanged for bonds refunded by agreement with their holders. The 
21.28 	refunding bonds must be prepared, executed, delivered, and secured in the same way as 
21.29 	the refunded bonds. The proceeds of refunding bonds may be deposited, invested, and 
21.30 	applied to accomplish the refunding as provided in section 475.67, subdivisions 5 to 
21.31 	10 and 13. The interest rate on refunding bonds may exceed that on the refunded bonds 
21.32 	if the purpose of refunding is to extend the maturities and to reduce the amount needed 
21.33 	annually to pay and to secure the debt.

21.34 	Sec. 25. Minnesota Statutes 2008, section 16A.86, subdivision 2, is amended to read:
22.1 		Subd. 2.Budget request. A political subdivision that requests an appropriation of 
22.2 	state money for a local capital improvement project is encouraged to submit  the request 
22.3 	to the commissioner of finance by  July 15 of an odd-numbered year to ensure its full 
22.4 	consideration.  The requests must be submitted in the form and with the supporting 
22.5 	documentation required by the commissioner of finance. All requests timely received by 
22.6 	the commissioner must be forwarded submitted to the legislature, along with agency 
22.7 	requests the governor's recommendations, whether or not the governor recommends that a 
22.8 	request be funded, by the deadline established in section 16A.11, subdivision 1. 

22.9 	Sec. 26. Minnesota Statutes 2008, section 16A.86, is amended by adding a subdivision 
22.10 	to read:
22.11 		Subd. 3a.Information provided. All requests for state assistance under this section 
22.12 	must include the following information:
22.13 	(1) the name of the political subdivision that will own the capital project for which 
22.14 	state assistance is being requested;
22.15 	(2) the public purpose of the project;
22.16 	(3) the extent to which the political subdivision has or expects to provide local, 
22.17 	private, user financing, or other nonstate funding for the project;
22.18 	(4) a list of the bondable activities that the project encompasses; examples of 
22.19 	bondable activities are public improvements of a capital nature for land acquisition, 
22.20 	predesign, design, construction, and furnishing and equipping for occupancy;
22.21 	(5) whether the project will require new or additional state operating subsidies;
22.22 	(6) whether the governing body of the political subdivision requesting the project 
22.23 	has passed a resolution in support of the project and has established priorities for all 
22.24 	projects within its jurisdiction for which bonding appropriations are requested when 
22.25 	submitting multiple requests; and
22.26 	(7) if the project requires a predesign under section 16B.335, whether the predesign 
22.27 	has been completed at the time the capital project request is submitted, and whether 
22.28 	the political subdivision has submitted the project predesign to the commissioner of 
22.29 	administration for review and approval.

22.30 	Sec. 27. [84.946] NATURAL RESOURCES ASSET PRESERVATION AND 
22.31 	REPLACEMENT (NRAPR).
22.32 		Subdivision 1.Purpose. The legislature recognizes that the Department of Natural 
22.33 	Resources owns and operates capital assets that in number, size, and programmatic use 
22.34 	differ significantly from the capital assets owned and operated by other state departments 
23.1 	and agencies. However, the legislature recognizes the need for standards to aid in 
23.2 	categorizing and funding capital projects. The purpose of this section is to provide 
23.3 	standards for those natural resource projects that are intended to preserve and replace 
23.4 	existing facilities.
23.5 		Subd. 2.Standards. (a) An appropriation for asset preservation may be used only 
23.6 	for a capital expenditure on a capital asset previously owned by the state, within the 
23.7 	meaning of generally accepted accounting principles as applied to public expenditures. 
23.8 	The commissioner of natural resources will consult with the commissioner of finance to 
23.9 	the extent necessary to ensure this and will furnish the commissioner of finance a list 
23.10 	of projects to be financed from the account in order of their priority. The legislature 
23.11 	assumes that many projects for preservation and replacement of portions of existing 
23.12 	capital assets will constitute betterments and capital improvements within the meaning of 
23.13 	the Constitution and capital expenditures under generally accepted accounting principles, 
23.14 	and will be financed more efficiently and economically under this section than by direct 
23.15 	appropriations for specific projects.
23.16 	(b) An appropriation for asset preservation must not be used to acquire land or to 
23.17 	acquire or construct buildings or other facilities.
23.18 	(c) Capital budget expenditures for natural resource asset preservation and 
23.19 	replacement projects must be for one or more of the following types of capital projects that 
23.20 	support the existing programmatic mission of the department: code compliance including 
23.21 	health and safety, Americans with Disabilities Act requirements, hazardous material 
23.22 	abatement, access improvement, or air quality improvement; building energy efficiency 
23.23 	improvements using current best practices; building or infrastructure repairs necessary 
23.24 	to preserve the interior and exterior of existing buildings; or renovation of other existing 
23.25 	improvements to land, including but not limited to trails and bridges.
23.26 	(d) Up to ten percent of an appropriation awarded under this section may be used 
23.27 	for design costs for projects eligible to be funded from this account in anticipation of 
23.28 	future funding from the account.
23.29 		Subd. 3.Reporting priorities. The commissioner of natural resources must 
23.30 	establish priorities within its natural resource asset preservation and replacement projects. 
23.31 	By January 15 of each year, the commissioner must submit to the commissioner of 
23.32 	finance and to the chairs of the house and senate committees with jurisdiction over 
23.33 	environment and natural resources finance and capital investment a list of the projects that 
23.34 	have been paid for with money from a natural resource asset preservation and replacement 
23.35 	appropriation during the preceding calendar year as well as a list of those priority projects 
24.1 	for which natural resource asset preservation and replacement appropriations will be 
24.2 	sought in that year's legislative session.

24.3 	Sec. 28. Minnesota Statutes 2008, section 85.015, is amended by adding a subdivision 
24.4 	to read:
24.5 		Subd. 26.Great River Ridge Trail, Wabasha and Olmsted Counties. The trail 
24.6 	shall originate in the city of Plainview in Wabasha County and extend southwesterly 
24.7 	through the city of Elgin in Wabasha County and the town of Viola in Olmsted County to 
24.8 	the Chester Woods Trail in Olmsted County.

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

24.10 	Sec. 29. Minnesota Statutes 2008, section 134.45, is amended by adding a subdivision 
24.11 	to read:
24.12 		Subd. 8.Sale of public library funded with state bond proceeds. If the 
24.13 	commissioner of education and the local or regional governmental entity that owns 
24.14 	a public library that has been improved with state bond proceeds under this section 
24.15 	determines that the library is no longer usable or needed for the purposes for which the 
24.16 	grant of state bond funds was made, the owner of the public library may sell the property 
24.17 	in the manner authorized by law for the sale of other property owned by that jurisdiction 
24.18 	for its fair market value. The sale must be approved by the commissioner of finance. 
24.19 	Notwithstanding section 16A.695, subdivision 3, clause (2), the net proceeds must be 
24.20 	applied as follows: first, to pay the state the amount of state bond proceeds used to acquire 
24.21 	or better the property; and second, any remaining amount must be paid to the local or 
24.22 	regional governmental owner of the property sold. When the sale is complete and the sale 
24.23 	proceeds have been applied as provided in this subdivision, section 16A.695 no longer 
24.24 	applies to the property and the property is no longer state bond financed property.

24.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
24.26 	and applies to the sale of public library property on or after that date.

24.27 	Sec. 30. Minnesota Statutes 2008, section 135A.046, subdivision 2, is amended to read:
24.28 		Subd. 2.Standards. Capital budget expenditures for Higher Education Asset 
24.29 	Preservation and Replacement (HEAPR) projects must be for one or more of the 
24.30 	following: code compliance including health and safety, Americans with Disabilities 
24.31 	Act requirements, hazardous material abatement, access improvement, or air quality 
24.32 	improvement; building energy efficiency improvements using current best practices; or 
25.1 	building or infrastructure repairs necessary to preserve the interior and exterior of existing 
25.2 	buildings; or renewal to support the existing programmatic mission of the campuses. Up 
25.3 	to ten percent of an appropriation awarded under this section may be used for design 
25.4 	costs for projects eligible to be funded from this account in anticipation of future funding 
25.5 	from the account.

25.6 	Sec. 31. Minnesota Statutes 2008, section 174.03, subdivision 1b, is amended to read:
25.7 		Subd. 1b.Statewide freight and passenger rail plan. (a) The commissioner 
25.8 	shall develop a comprehensive statewide freight and passenger rail plan to be included 
25.9 	and revised as a part of the statewide transportation plan.
25.10 	(b) Before the initial version of the plan is adopted, the commissioner shall provide a 
25.11 	copy for review and comment to the chairs and ranking minority members of the senate 
25.12 	and house of representatives committees with jurisdiction over transportation policy and 
25.13 	finance. Notwithstanding paragraph (a), the commissioner may adopt the next revision 
25.14 	of the statewide transportation plan, scheduled to be completed in calendar year 2009, 
25.15 	prior to completion of the initial version of the comprehensive statewide freight and 
25.16 	passenger rail plan.
25.17 	(c) The plan must identify the corridors and the capital improvements and 
25.18 	betterments to be made. Capital improvements and betterments include preliminary 
25.19 	engineering, design, engineering, environmental analysis and mitigation, acquisition 
25.20 	of land and right-of-way, and construction. Capital improvements and betterments do 
25.21 	not include planning, feasibility studies, or alternatives analysis. The plan must specify 
25.22 	criteria for determining the priority for allocation of funds among the projects and routes.

25.23 	Sec. 32. [174.632] COMMISSIONER'S DUTIES.
25.24 	The planning, design, development, construction, operation, and maintenance 
25.25 	of passenger rail track, facilities, and services are governmental functions, serve a 
25.26 	public purpose, and are a matter of public necessity. The commissioner is responsible 
25.27 	for all aspects of planning, designing, developing, constructing, equipping, operating, 
25.28 	and maintaining passenger rail, including system planning, alternatives analysis, 
25.29 	environmental studies, preliminary engineering, final design, construction, negotiating 
25.30 	with railroads, and developing financial and operating plans. The commissioner may 
25.31 	enter into a memorandum of understanding or agreement with a public or private entity, 
25.32 	including a regional railroad authority, a joint powers board, and a railroad, to carry out 
25.33 	these activities.

26.1 	Sec. 33. [174.634] PASSENGER RAIL FUNDING.
26.2 	The commissioner may apply for funding from federal, state, regional, local, and 
26.3 	private sources to carry out the commissioner's duties in section 174.632.

26.4 	Sec. 34. [174.636] EXERCISE OF POWER; PASSENGER RAIL.
26.5 	(a) The commissioner has all powers necessary to carry out the duties specified 
26.6 	in section 174.632. In the exercise of those powers, the commissioner may acquire by 
26.7 	purchase, gift, or by eminent domain proceedings as provided by law, all land and property 
26.8 	necessary to preserve future passenger rail corridors or to construct, maintain, and improve 
26.9 	passenger rail corridors, to let all necessary contracts as provided by law, and to make 
26.10 	agreements with and cooperate with any governmental authority or private entity to carry 
26.11 	out statutory duties related to passenger rail.
26.12 	(b) The commissioner shall consult with metropolitan planning organizations and 
26.13 	regional rail authorities in areas where passenger rail corridors are under consideration 
26.14 	to ensure that passenger rail services are integrated with existing rail and transit services 
26.15 	and other transportation facilities to provide as nearly as possible connected, efficient, 
26.16 	and integrated services.

26.17 	Sec. 35. [174.638] FUNDING.
26.18 	Section 174.88 does not apply to the commissioner's performance of duties and 
26.19 	exercise of powers under sections 174.632 to 174.636.

26.20 	Sec. 36. Minnesota Statutes 2008, section 174.88, subdivision 2, is amended to read:
26.21 		Subd. 2.Expenditure of state funds. The commissioner shall not spend any state 
26.22 	funds for construction or equipment of commuter rail facilities unless the funds have been 
26.23 	appropriated by law specifically for those purposes. The commissioner shall not spend 
26.24 	state funds to study commuter rail unless the funds are appropriated in legislation that 
26.25 	identifies the route, including origin and destination.

26.26 	Sec. 37. [473.3992] TRANSIT CAPITAL IMPROVEMENT PROGRAM.
26.27 		Subdivision 1.Establishment. A transit capital improvement program is established 
26.28 	to prioritize among eligible public projects to be funded from state bond proceeds 
26.29 	appropriated to the council that are distinctly specified for transit capital improvements 
26.30 	throughout the metropolitan area through the acquisition and betterment of public land 
26.31 	and buildings and other public improvements and the construction, improvement, and 
27.1 	maintenance of transit capital improvements, which may include the state trunk highway 
27.2 	system.
27.3 		Subd. 2.Definition. For purposes of this section, "transit capital improvement" 
27.4 	means a busway corridor, express bus corridor with transit advantages, bus rapid transit, 
27.5 	light rail transit, or commuter rail.
27.6 		Subd. 3.Program standards; criteria. Article XI, section 5, clause (a), of the 
27.7 	Constitution provides that state general obligation bonds may be issued to finance the 
27.8 	acquisition and betterment of public land and buildings and other public improvements 
27.9 	of a capital nature. Article XI, section 5, clause (e), and article XIV, sections 1, 2, 6, 
27.10 	and 11, of the Constitution provide that state general obligation trunk highway bonds 
27.11 	may be issued to finance capital projects that are part of, or functionally related to, 
27.12 	the construction, improvement, or maintenance of the state trunk highway system. In 
27.13 	interpreting these provisions and applying them to the purpose of the program established 
27.14 	in this section, the following standards are adopted for determining the priority among 
27.15 	eligible transit capital improvement projects to be funded under the program, provided 
27.16 	such funding is otherwise consistent with the appropriation of state bond proceeds and all 
27.17 	other laws, regulations, and orders applicable to the expenditure of state bond proceeds as 
27.18 	determined by the commissioner of finance.
27.19 	(a) A cost will be an eligible expenditure under this program only when it is a capital 
27.20 	expenditure on a capital asset, owned or to be owned by the state, an agency of the state, or 
27.21 	a political subdivision of the state, within the meaning of accepted accounting principles as 
27.22 	applied to public expenditures. Eligible expenditures may include acquisition, predesign, 
27.23 	design, environmental testing and mitigation, utility relocation, traffic mitigation, 
27.24 	construction, demolition, furnishing, equipping, and renovating of projects as authorized 
27.25 	by law.  Notwithstanding any law to the contrary, a portion or a phase of a transit capital 
27.26 	improvement project may be accomplished with one or more state appropriations, and a 
27.27 	transit capital improvement project need not be completed with any one appropriation. 
27.28 	(b) The council will review eligible transit capital improvement projects and must 
27.29 	make allocations of state bond proceeds among such projects based upon the program 
27.30 	standards of this subdivision and the following specific criteria: 
27.31 	(1) the ability to use nonstate funds to match state funds, including use of all 
27.32 	available federal funds for a project;
27.33 	(2) expansion of transit capital improvements and use by the public; 
27.34 	(3) urgency in providing for the transit capital improvement; 
27.35 	(4) necessity in ensuring transportation options;
27.36 	(5) consistency with the council's transportation policy plan; and 
28.1 	(6) additional criteria for priorities otherwise specified in state law, statute, rule, or 
28.2 	regulation applicable to a transit capital improvement, including the state law authorizing 
28.3 	the state bond fund appropriation for the transit capital improvement. 
28.4 	(c) Criteria can be stated only in general terms, since it is a purpose of the program 
28.5 	to improve the allocation of limited amounts of available funds by enlisting the knowledge 
28.6 	and experience of the council in determining relative needs as they develop. 
28.7 	(d) The criteria in paragraph (b) are not listed in a rank order of priority.
28.8 	(e) The council may enter into a memorandum of understanding or agreement with a 
28.9 	county or county regional rail authority to carry out the activities of this program.
28.10 		Subd. 4.Report. By January 15 of each year, the council shall submit to the 
28.11 	commissioner of finance, the chairs of the legislative committees or divisions that 
28.12 	oversee appropriations to the council, and to the chairs of the senate and the house of 
28.13 	representatives capital investment committees, a list of the projects that have been funded 
28.14 	with state general obligation bond proceeds under this program during the preceding 
28.15 	calendar year, as well as a list of those projects for which state general obligation bond 
28.16 	proceeds appropriations are anticipated to be sought under this program during that year's 
28.17 	legislative session.

28.18 	EFFECTIVE DATE; APPLICATION. This section applies in the counties of 
28.19 	Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

28.20 	Sec. 38. Laws 2005, chapter 20, article 1, section 23, subdivision 16, as amended by 
28.21 	Laws 2008, chapter 179, section 58, is amended to read:

28.22	Subd. 16.Minneapolis

28.23	(a) Minnesota Planetarium
				22,000,000
	
28.24 	For a grant to Hennepin County to complete 
28.25 	design and to construct, furnish, and 
28.26 	equip a new Minnesota planetarium and 
28.27 	space discovery center in conjunction 
28.28 	with the Minneapolis downtown library.
28.29 	Notwithstanding Minnesota Statutes, 
28.30 	section 16A.642, the bond authorization 
28.31 	and appropriation of bond proceeds for this 
28.32 	project are available until December 31, 
28.33 	2012.

29.1	(b) Heritage Park
					
29.2 	Any unspent balance remaining on December 
29.3 	31, 2004, in the appropriation made by 
29.4 	Laws 2000, chapter 492, article 1, section 
29.5 	22, subdivision 10, for a grant to the city of 
29.6 	Minneapolis, may be used by the city for 
29.7 	improvements to the Heritage Park project.

29.8	(c) Minnesota Shubert Center
				1,000,000
	
29.9 	For a grant to the city of Minneapolis to 
29.10 	predesign and design and provide for related 
29.11 	capital costs for an associated atrium to 
29.12 	create the Minnesota Shubert Center.

29.13 	Sec. 39. Laws 2006, chapter 258, section 20, subdivision 7, is amended to read:

29.14
29.15	Subd.  7.Minnesota correctional facility - 
Stillwater

29.16	Segregation Unit
				19,580,000
	
29.17 	To complete design and to construct, furnish, 
29.18 	and equip a new 150-bed segregation unit
29.19 	and reconstruct the old segregation unit.

29.20 	Sec. 40. Laws 2006, chapter 258, section 21, subdivision 5, is amended to read:

29.21
29.22	Subd. 5.Greater Minnesota Business 
Development Infrastructure Grant Program
 				7,750,000
	
29.23 	For grants under Minnesota Statutes, section 
29.24 	116J.431.
29.25 	$250,000 is for a grant to Polk County to 
29.26 	build approximately one mile of ten-ton road 
29.27 	to provide access to a new proposed ethanol 
29.28 	plant outside of the city of Erskine.
29.29 	$1,400,000 is for a grant to the city of 
29.30 	LaCrescent for public infrastructure made 
29.31 	necessary by the reconstruction of a highway 
29.32 	and a bridge. 

30.1 	Sec. 41. Laws 2006, chapter 258, section 21, subdivision 6, as amended by Laws 2008, 
30.2 	chapter 179, section 65, is amended to read:

30.3	Subd. 6.Redevelopment Account
 				9,000,000
	
30.4 	For purposes of the redevelopment account 
30.5 	under Minnesota Statutes, section 116J.571.
30.6 	$800,000 is for a grant to the city of 
30.7 	Worthington to remediate contaminated soil 
30.8 	and redevelop the site of the former Campbell 
30.9 	Soup factory. This grant is exempt from the 
30.10 	requirements of Minnesota Statutes, sections 
30.11 	116J.572 to 116J.575. Notwithstanding 
30.12 	Minnesota Statutes, section 16A.642, the 
30.13 	bond authorization and appropriation of the 
30.14 	bond proceeds for this project are available 
30.15 	until December 31, 2012.
30.16 	$250,000 is for a grant to the city of Winona 
30.17 	to predesign facilities for a multipurpose 
30.18 	events center and arena to be used for the 
30.19 	Shakespeare Festival, Beethoven Festival, 
30.20 	and Winona State University events. This 
30.21 	grant is exempt from the requirements of 
30.22 	Minnesota Statutes, sections 116J.572 to 
30.23 	116J.575.

30.24 	Sec. 42. Laws 2006, chapter 258, section 23, subdivision 3, as amended by Laws 2008, 
30.25 	chapter 179, section 68, is amended to read:

30.26
30.27	Subd. 3.Historic Fort Snelling Museum and 
Visitor Center
 				1,100,000
	
30.28 	To predesign and design the historic Fort 
30.29 	Snelling Museum and Visitor Center and 
30.30 	other site improvements to revitalize historic 
30.31 	Fort Snelling.

30.32 	Sec. 43. Laws 2008, chapter 179, section 3, subdivision 12, as amended by Laws 2008, 
30.33 	chapter 365, section 17, is amended to read:

31.1	Subd. 12. Metropolitan State University

31.2	(a) Smart Classroom Center 
				4,980,000 
	
31.3 	To construct, furnish, and equip renovation 
31.4 	of two floors of technology-enhanced 
31.5 	classrooms and academic offices in the 
31.6 	power plant building. This appropriation 
31.7 	includes money to demolish the power plant 
31.8 	annex to enable the new construction. * 
31.9 	(The preceding text beginning "(a) Smart 
31.10 	Classroom Center" was indicated as 
31.11 	vetoed by the governor.)

31.12	(b) Law Enforcement Training Center 
				13,900,000 
	
31.13 	To compete design of and to construct, 
31.14 	furnish, and equip, in cooperation with 
31.15 	Minneapolis Community and Technical 
31.16 	College, a colocated Law Enforcement 
31.17 	Training Center on the campus of Hennepin 
31.18 	Technical College in Brooklyn Park. The 
31.19 	board may use up to $2,000,000 of funds 
31.20 	from each college or university, or other 
31.21 	nonstate money for the remainder of the cost 
31.22 	of design and construction of this project.

31.23 	Sec. 44. Laws 2008, chapter 179, section 3, subdivision 21, is amended to read:

31.24
31.25	Subd. 21.Owatonna College and University 
Center

31.26	Property Acquisition
				3,500,000
	
31.27 	To acquire the Owatonna College and 
31.28 	University Center Building in Steele County, 
31.29 	including the purchase of adjacent vacant 
31.30 	land and for minor capital improvements to 
31.31 	the property.

31.32 	Sec. 45. Laws 2008, chapter 179, section 3, subdivision 25, is amended to read:

32.1	Subd. 25.St. Cloud State University 

32.2	(a) Brown Science Hall Renovation
				14,800,000
	
32.3 	To complete design of and to construct, 
32.4 	furnish, and equip a renovation of Brown 
32.5 	Hall for classrooms, science laboratories, and 
32.6 	other instructional and ancillary spaces. This 
32.7 	appropriation includes funding to reglaze the 
32.8 	existing skyway from the building and to 
32.9 	construct a new skyway to Centennial Hall.
32.10 	This appropriation may also be used to 
32.11 	complete design and construction drawings 
32.12 	for the Science and Engineering Lab 
32.13 	authorized in paragraph (b) and to demolish 
32.14 	building number 801.

32.15	(b) Science and Engineering Lab
				900,000
	
32.16 	To design an integrated science and 
32.17 	engineering laboratory and student and 
32.18 	academic support building.

32.19 	Sec. 46. PASSENGER RAIL REPORT.
 32.20 	By February 1, 2010, the commissioner of transportation shall report to the chairs 
32.21 	and ranking minority members of the legislative committees with jurisdiction over 
32.22 	transportation policy and finance concerning the status of passenger rail in this state. 
32.23 	The report must be made electronically and made available in print only upon request. 
32.24 	The report must include a summary of the current status of passenger rail projects and 
32.25 	recommend:
32.26 	(1) a public participation process for intercity passenger rail planning;
32.27 	(2) appropriate participation and levels of review by local units of government;
32.28 	(3) future sources of funding for capital costs and operations;
32.29 	(4) definitions to distinguish passenger rail from commuter rail;
32.30 	(5) legislative changes to facilitate and improve the passenger rail planning processes 
32.31 	and operation; and
32.32 	(6) state operating subsidy mechanisms designed to create local tax equity between 
32.33 	communities served by passenger rail and communities served by commuter rail.

33.1 	Sec. 47. VETERANS RESIDENTIAL MENTAL HEALTH NURSING 
33.2 	FACILITY, KANDIYOHI COUNTY.
 33.3 	(a) Services provided by the veterans residential mental health nursing facility in 
33.4 	Kandiyohi County must include, but are not limited to:
33.5 	(1) geriatric care for mentally ill veterans who have severe behavior problems;
33.6 	(2) inpatient treatment, including long-term and domiciliary care, for veterans with 
33.7 	traumatic brain injury;
33.8 	(3) inpatient treatment services, including long-term and domiciliary care, for 
33.9 	veterans with post-traumatic stress disorder;
33.10 	(4) inpatient treatment for veterans with a dual diagnosis of mental illness and 
33.11 	chemical dependency;
33.12 	(5) long-term and domiciliary care for any veteran; and
33.13 	(6) standard long-term care.
33.14 	(b) The facility shall accept referrals from veterans homes in the state.
33.15 	(c) The commissioner of veterans affairs shall seek private funding to develop a 
33.16 	public-private partnership to provide services for veterans with traumatic brain injury and 
33.17 	with post-traumatic stress disorder, and for veterans who have a dual diagnosis of mental 
33.18 	illness and chemical dependency.
33.19 	(d) The commissioner of veterans affairs shall seek all sources of federal funding 
33.20 	available for long-term and domiciliary care and for treatment of post-traumatic stress 
33.21 	disorder and traumatic brain injury.
33.22 	(e) The commissioner shall seek funding from state and federal sources to fund 
33.23 	traumatic brain injury research at this facility.

33.24 	Sec. 48. REPORT ON JOBS CREATED OR RETAINED.
 33.25 	The commissioner of employment and economic development shall report to the 
33.26 	house of representatives and senate committees with jurisdiction over capital investment 
33.27 	on the jobs created or retained as a result of the projects funded in this act. The report 
33.28 	must include, but is not limited to, the following information: the number and types of 
33.29 	jobs for each project, whether new or retained, where the jobs were located, and pay 
33.30 	ranges. The Board of Regents of the University of Minnesota, the Board of Trustees of 
33.31 	the Minnesota State Colleges and Universities, and each agency appropriated money in 
33.32 	this act shall collect and provide the information at the time and in the manner required 
33.33 	by the commissioner of employment and economic development. The commissioner's 
33.34 	report must be compiled using information supplied by each of the agencies appropriated 
33.35 	money in this act. The report is due February 15, 2010.

34.1 	Sec. 49.  REPEALER.
 34.2 	Minnesota Statutes 2008, sections 16A.86, subdivision 3; 116.156; and 473.399, 
34.3 	subdivision 4, and Laws 2008, chapter 179, section 8, subdivision 3,  are repealed.

34.4 	Sec. 50. EFFECTIVE DATE.
 34.5 	Except as otherwise provided, this act is effective the day following final enactment.