1.1A bill for an act1.2relating to capital improvements; authorizing spending to acquire and better 1.3public land and buildings and for other improvements of a capital nature with 1.4certain conditions; establishing programs; authorizing the sale and issuance of 1.5state bonds; modifying previous appropriations; authorizing Cook County to form 1.6a district for the construction of water facilities and provision of water service; 1.7authorizing the commissioner of natural resources to make certain acquisitions 1.8of land or interests in land; appropriating money; amending Minnesota Statutes 1.92010, sections 16A.633, by adding a subdivision; 16A.641, subdivision 9; 1.10462A.21, by adding a subdivision; Minnesota Statutes 2011 Supplement, 1.11sections 16A.641, subdivision 7; 16A.96, by adding a subdivision; Laws 2006, 1.12chapter 258, sections 7, subdivision 23, as amended; 17, subdivision 3; Laws 1.132008, chapter 179, sections 7, subdivision 27, as amended; 17, subdivision 4; 18, 1.14subdivision 3, as amended; 19, subdivision 4, as amended; 21, subdivision 15, 1.15as amended; Laws 2009, chapter 93, article 1, section 12, subdivision 2; Laws 1.162010, chapter 189, sections 18, subdivision 5; 24, subdivision 3; Laws 2011, 1.17First Special Session chapter 12, sections 3, subdivisions 7, 8; 14, subdivision 1.182; 19; 22; proposing coding for new law in Minnesota Statutes, chapters 15B; 1.1916B; 116J; 462A; repealing Laws 2011, chapter 107, section 101; Minnesota 1.20Rules, part 8895.0700, subpart 1.1.21BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.22Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

1.23The sums shown in the column under "Appropriations" are appropriated from the 1.24bond proceeds fund, or another named fund, to the state agencies or officials indicated, 1.25to be spent for public purposes. Appropriations of bond proceeds must be spent as 1.26authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire 1.27and better public land and buildings and other public improvements of a capital nature or 1.28as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), 1.29or article XIV. Unless otherwise specified, money appropriated in this act for a capital 1.30program or project may be used to pay state agency staff costs that are attributed directly 1.31to the capital program or project in accordance with accounting policies adopted by the 2.1commissioner of management and budget. Unless otherwise specified, the appropriations 2.2in this act are available until the project is completed or abandoned subject to Minnesota 2.3Statutes, section 16A.642.

2.4SUMMARY2.5University of Minnesota$64,060,0002.6Minnesota State Colleges and Universities132,126,0002.7 Education1,000,0002.8Minnesota State Academies1,000,0002.9Perpich Center for Arts Education263,0002.10Natural Resources46,500,0002.11Pollution Control Agency2,000,0002.12Board of Water and Soil Resources12,000,0002.13Agriculture706,0002.14Rural Finance Authority33,000,0002.15Zoological Garden4,000,0002.16Administration50,555,0002.17Amateur Sports375,0002.18Military Affairs23,500,0002.19Transportation49,400,0002.20Metropolitan Council12,836,0002.21Human Services7,683,0002.22Veterans Affairs7,416,0002.23Corrections9,128,0002.24Employment and Economic Development76,500,0002.25Public Facilities Authority23,500,0002.26Housing Finance Agency5,500,0002.27Minnesota Historical Society3,250,0002.28Bond Sale Expenses560,0002.29TOTAL$566,858,0002.30Bond Proceeds Fund (General Fund Debt Service)456,483,0002.31Bond Proceeds Fund (User Financed Debt Service)70,375,0002.32State Transportation Fund (General Fund Debt Service)40,000,000

2.33APPROPRIATIONS

2.34Sec. 2. UNIVERSITY OF MINNESOTA

2.35Subdivision 1.Total Appropriation$64,060,000

2.36To the Board of Regents of the University 2.37of Minnesota for the purposes specified in 2.38this section.

2.392.40Subd. 2.Higher Education Asset Preservation and Replacement (HEAPR)50,000,000

3.1To be spent in accordance with Minnesota 3.2Statutes, section 135A.046.

3.3Subd. 3.Twin Cities Campus

3.4Combined Heat and Power Plant10,000,000

3.5To predesign and design and initiate 3.6infrastructure improvements for the 3.7renovation of the Old Main Steam Plant 3.8facility on the Twin Cities campus.

3.9Subd. 4.Itasca Biological Station

3.10Itasca Facility Improvements4,060,000

3.11To design, construct, furnish, and equip a new 3.12technology-rich biological laboratory and 3.13classroom facility, and to design, construct, 3.14furnish, and equip the renovation of the 3.15historic Lakeside Lab and to remove obsolete 3.16single-function buildings at the University of 3.17Minnesota facility in Itasca State Park.

3.18Subd. 5.University Share

3.19Except for Higher Education Asset 3.20Preservation and Replacement (HEAPR) 3.21under subdivision 2, the appropriations in this 3.22section are intended to cover approximately 3.23two-thirds of the cost of each project. The 3.24remaining costs must be paid from university 3.25sources.

3.26Subd. 6.Unspent Appropriations

3.27Upon substantial completion of a project 3.28authorized in this section and after written 3.29notice to the commissioner of management 3.30and budget, the Board of Regents must use 3.31any money remaining in the appropriation 3.32for that project for HEAPR under Minnesota 3.33Statutes, section 135A.046. The Board 4.1of Regents must report by February 1 of 4.2each even-numbered year to the chairs of 4.3the house of representatives and senate 4.4committees with jurisdiction over capital 4.5investment and higher education finance, and 4.6to the chairs of the house of representatives 4.7Ways and Means Committee and the senate 4.8Finance Committee, on how the remaining 4.9money has been allocated or spent.

4.104.11Sec. 3. MINNESOTA STATE COLLEGES AND UNIVERSITIES

4.12Subdivision 1.Total Appropriation$132,126,000

4.13To the Board of Trustees of the Minnesota 4.14State Colleges and Universities for the 4.15purposes specified in this section.

4.164.17Subd. 2.Higher Education Asset Preservation and Replacement (HEAPR)20,000,000

4.18For the purposes specified in Minnesota 4.19Statutes, section 135A.046, including safety 4.20and statutory compliance, building envelope 4.21integrity, mechanical systems, and space 4.22restoration.

4.234.24Subd. 3.Anoka-Ramsey Community College, Coon Rapids

4.254.26Bioscience and Allied Health Addition and Renovation980,000

4.27To complete design for the construction of a 4.28Bioscience and Allied Health addition and to 4.29design, renovate, and equip classrooms and 4.30related space.

4.31Subd. 4.Bemidji State University

4.324.33Business Building Addition, Renovation Design, Demolition3,303,000

4.34To abate and demolish Maple Hall and 4.35Sanford Hall, and to complete design for the 5.1renovation of Decker Hall, Hobson Hall, 5.2and Memorial Hall into multiuse classrooms 5.3and study spaces, including replacing the 5.4HVAC system and constructing an addition 5.5to Memorial Hall for better accessibility.

5.6Subd. 5.Century College

5.7Classroom Addition5,000,000

5.8To complete design of and to construct, 5.9renovate, furnish, and equip classrooms and 5.10related spaces.

5.11Subd. 6.Dakota County Technical College

5.125.13Transportation and Emerging Technologies Lab Renovation7,230,000

5.14To complete design of and to renovate, 5.15furnish, and equip transportation and 5.16emerging technologies classrooms, 5.17laboratories, and related spaces.

5.18Subd. 7.Minnesota State University, Mankato2,065,000

5.19To design a clinical science building at 5.20Minnesota State University, Mankato.

5.215.22Subd. 8.Minneapolis Community and Technical College

5.23Workforce Program Renovation13,389,000

5.24To complete design of and to renovate, 5.25furnish, and equip instructional space, 5.26support space, and infrastructure for 5.27workforce programs.

5.28Subd. 9.North Hennepin Community College

5.29Bioscience and Health Careers Addition26,292,000

5.30To complete design of and to construct, 5.31furnish, and equip Bioscience and Health 5.32Careers laboratories, classrooms, and related 5.33spaces.

6.16.2Subd. 10.Northland Community and Technical College 

6.3Aviation Maintenance Facility Expansion300,000

6.4To design the expansion and renovation of the 6.5aviation maintenance facilities at Northland 6.6Community and Technical College.

6.7Subd. 11.Ridgewater College, Willmar

6.8Technical Instruction Lab Renovation13,851,000

6.9To design, renovate, furnish, and equip 6.10classroom, student service, instructional 6.11lab, and related spaces and to demolish the 6.12Administration Building.

6.136.14Subd. 12.St. Cloud Technical and Community College4,000,000

6.15To complete the design of, and to construct, 6.16renovate, furnish, equip, and demolish space 6.17for the medium heavy truck and autobody 6.18program on the St. Cloud Technical and 6.19Community College campus.

6.20Subd. 13.St. Paul College

6.21Health and Science Alliance Center1,500,000

6.22To design the Health and Science Alliance 6.23Center addition and to design, renovate, 6.24furnish, and equip, existing health spaces.

6.256.26Subd. 14.Minnesota West Community and Technical College, Worthington

6.27Renovation and Addition4,606,000

6.28To renovate, furnish, and equip existing 6.29classroom and lab spaces and to design, 6.30construct, furnish, and equip a classroom, 6.31lab, and entryway addition, and replace 6.32HVAC systems.

7.17.2Subd. 15.Northeast Higher Education District - Itasca Community College

7.3Renovation, Addition, and Demolition4,549,000

7.4To complete the design of and to renovate, 7.5furnish, and equip existing instructional 7.6and student services spaces, to design, 7.7construct, furnish, and equip an addition with 7.8multipurpose classrooms, and to demolish 7.9Donovan Hall.

7.107.11Subd. 16.Rochester Community and Technical College

7.12Work Force Center Colocation8,746,000

7.13To complete the design of and to construct, 7.14furnish, and equip an addition to the 7.15Heintz Center at Rochester Community 7.16and Technical College and to renovate the 7.17heating, ventilating, and air conditioning 7.18systems. The addition will house the 7.19Rochester Area Work Force Center. The 7.20board of trustees must consult with the 7.21commissioner of employment and economic 7.22development on the design of the renovations 7.23and addition. The board must enter into a 7.24lease agreement with the commissioner of 7.25employment and economic development 7.26for use of the work force center. The 7.27lease agreement must provide that lease 7.28payments made by the commissioner will 7.29pay for the college's reasonable costs in 7.30support of the work force center and the 7.31debt service required of the board associated 7.32with the work force center portion of the 7.33project. Notwithstanding the ten-year lease 7.34limit under Minnesota Statutes, section 7.3516B.24, subdivision 6, the commissioner 8.1of administration may enter into a lease 8.2agreement of up to 20 years for the space to 8.3house the Rochester Area Work Force Center 8.4at the Rochester Community and Technical 8.5College.

8.6Subd. 17.South Central College, Faribault

8.7Classroom Renovation and Addition13,315,000

8.8To complete design of and to renovate, 8.9construct, furnish, and equip classrooms, a 8.10learning resource center, and related spaces, 8.11and laboratories.

8.128.13Subd. 18.Southwest Minnesota State University, Marshall

8.14Science Lab Renovation500,000

8.15To complete design for renovation of the 8.16Science and Math building and classroom 8.17spaces and an addition to the Plant Science 8.18building.

8.198.20Subd. 19.Science, Technology, Engineering, and Math Initiatives2,500,000

8.21To design, renovate, furnish, and equip 8.22science laboratories at campuses statewide. 8.23Campuses may use internal and nonstate 8.24funds to increase the size of the projects. This 8.25appropriation may be used at the following 8.26campuses: Bemidji State University; Century 8.27College; Inver Hills Community College; 8.28Minnesota State Community and Technical 8.29College, Moorhead; Minnesota State 8.30University, Moorhead; Hibbing Community 8.31College; Itasca Community College; Mesabi 8.32Range Community and Technical College, 8.33Eveleth; and Pine Technical College.

8.34Subd. 20.Debt Service

9.1(a) The Board of Trustees shall pay the 9.2debt service on one-third of the principal 9.3amount of state bonds sold to finance 9.4projects authorized by this section, except 9.5for higher education asset preservation 9.6and replacement, and except that, where a 9.7nonstate match is required, the debt service is 9.8due on a principal amount equal to one-third 9.9of the total project cost, less the match 9.10committed before the bonds are sold. After 9.11each sale of general obligation bonds, the 9.12commissioner of management and budget 9.13shall notify the board of the amounts assessed 9.14for each year for the life of the bonds.9.15(b) The commissioner of management and 9.16budget shall reduce the board's assessment 9.17each year by one-third of the net income 9.18from investment of general obligation bond 9.19proceeds in proportion to the amount of 9.20principal and interest otherwise required to 9.21be paid by the board. The board shall pay its 9.22resulting net assessment to the commissioner 9.23of management and budget by December 9.241 each year. If the board fails to make 9.25a payment when due, the commissioner 9.26of management and budget shall reduce 9.27allotments for appropriations from the 9.28general fund otherwise available to the board 9.29and apply the amount of the reduction to 9.30cover the missed debt service payment. The 9.31commissioner of management and budget 9.32shall credit the payments received from the 9.33board to the bond debt service account in 9.34the state bond fund each December 1 before 9.35money is transferred from the general fund 10.1under Minnesota Statutes, section 16A.641, 10.2subdivision 10.

10.3Subd. 21.Unspent Appropriations

10.4(a) Upon substantial completion of a 10.5project authorized in this section and after 10.6written notice to the commissioner of 10.7management and budget, the board must use 10.8any money remaining in the appropriation 10.9for that project for Higher Education Asset 10.10Preservation and Replacement (HEAPR) 10.11under Minnesota Statutes, section 135A.046. 10.12The board must report by February 1 of each 10.13even-numbered year to the chairs of the house 10.14of representatives and senate committees 10.15with jurisdiction over capital investments and 10.16higher education finance, and to the chairs 10.17of the house of representatives Ways and 10.18Means Committee and the senate Finance 10.19Committee, on how the remaining money 10.20has been allocated or spent.10.21(b) The unspent portion of an appropriation 10.22for a project in this section that is complete 10.23is available for Higher Education Asset 10.24Preservation and Replacement (HEAPR) 10.25under this subdivision at the same campus 10.26as the project for which the original 10.27appropriation was made, and the debt 10.28service requirement under subdivision 20 is 10.29reduced accordingly. Minnesota Statutes, 10.30section 16A.642, applies from the date of the 10.31original appropriation to the unspent amount 10.32transferred.

10.33Sec. 4. EDUCATION$1,000,000

11.1To the commissioner of education for library 11.2accessibility and improvement grants under 11.3Minnesota Statutes, section 134.45.

11.4Sec. 5. MINNESOTA STATE ACADEMIES$1,000,000

11.5To the commissioner of administration for 11.6asset preservation on both campuses of the 11.7academies, to be spent in accordance with 11.8Minnesota Statutes, section 16B.307.

11.911.10Sec. 6. PERPICH CENTER FOR ARTS EDUCATION

11.11Subdivision 1.Total Appropriation$263,000

11.12To the commissioner of administration for 11.13the purposes specified in this section.

11.14Subd. 2.Loading Dock Repair64,000

11.15To complete design of and repair the loading 11.16dock and dock steps.

11.17Subd. 3.Road Repair99,000

11.18To complete design and repair roadway.

11.19Subd. 4.Storm Drainage100,000

11.20To complete design of and install storm 11.21drainage on the northwest corner of campus.

11.22Sec. 7. NATURAL RESOURCES

11.23Subdivision 1.Total Appropriation$46,500,000

11.24To the commissioner of natural resources 11.25for the purposes specified in this section. 11.26The appropriations in this section are 11.27subject to the requirements of the natural 11.28resources capital improvement program 11.29under Minnesota Statutes, section 86A.12, 11.30unless this section or the statutes referred 11.31to in this section provide more specific 12.1standards, criteria, or priorities for projects 12.2than Minnesota Statutes, section 86A.12.

12.3Subd. 2.Flood Hazard Mitigation Grants30,000,000

12.4For the state share of flood hazard 12.5mitigation grants for publicly owned capital 12.6improvements to prevent or alleviate flood 12.7damage under Minnesota Statutes, section 12.8103F.161.12.9Levee projects, to the extent practicable, 12.10shall meet the state standard of three feet 12.11above the 100-year flood elevation.12.12Project priorities shall be determined by the 12.13commissioner as appropriate, based on need.12.14To the extent that the cost of a project 12.15exceeds two percent of the median household 12.16income in the municipality multiplied by the 12.17number of households in the municipality, 12.18this appropriation is also for the local share 12.19of the project.

12.2012.21Subd. 3.Dam Repair, Reconstruction, and Removal3,000,000

12.22To renovate or remove publicly owned dams. 12.23The commissioner shall determine project 12.24priorities as appropriate under Minnesota 12.25Statutes, sections 103G.511 and 103G.515.

12.26Subd. 4.Roads and Bridges2,000,000

12.27For the design, reconstruction, resurfacing, 12.28replacement, and construction of publicly 12.29owned DNR-maintained roads, culverts, and 12.30bridges. 

12.31Subd. 5.State Forest Land Restoration2,500,000

12.32To increase reforestation activities to meet 12.33the reforestation requirements of Minnesota 12.34Statutes, section 89.002, subdivision 2, 13.1including planting, seeding, site preparation, 13.2and for timber stand improvement.

13.313.4Subd. 6.State Parks and Trails Renewal and Development4,000,000

13.5For renewal, modification, replacement, or 13.6development of buildings and recreational 13.7infrastructure in state parks, state recreation 13.8areas, state trails, small craft harbors/marinas, 13.9fishing pier sites, and state forests.

13.10Subd. 7.Lake Vermillion State Park2,000,000

13.11For the development of Lake Vermillion 13.12State Park, established under Minnesota 13.13Statutes, section 85.012, subdivision 38a.

13.14Subd. 8.Lake Zumbro3,000,000

13.15For a grant to Olmsted County for the 13.16removal of sedimentation in Lake Zumbro, 13.17including final engineering, dredging, and 13.18dredged soil disposal from the sites identified 13.19in the Preliminary Engineering Report 13.20for Dredging Lake Zumbro. This project 13.21is designed to improve the recreational 13.22economy, water quality, and habitat, and 13.23increase water storage capacity within the 13.24lake to achieve renewable energy goals 13.25by optimizing long-term hydroelectric 13.26operations. This appropriation is not 13.27available until the commissioner has 13.28determined that at least an equal amount has 13.29been committed to the project from nonstate 13.30sources.

13.31Subd. 9.Unspent Appropriations

13.32The unspent portion of an appropriation, 13.33but not to exceed ten percent of the 13.34appropriation, for a project in this section 14.1that is complete, other than an appropriation 14.2for flood hazard mitigation, upon written 14.3notice to the commissioner of management 14.4and budget, is available for asset preservation 14.5under Minnesota Statutes, section 84.946. 14.6Minnesota Statutes, section 16A.642, applies 14.7from the date of the original appropriation 14.8to the unspent amount transferred for asset 14.9preservation.

14.10Sec. 8. POLLUTION CONTROL AGENCY$2,000,000

14.11To the Pollution Control Agency to design 14.12and construct remedial systems and acquire 14.13land at landfills throughout the state in 14.14accordance with the closed landfill program 14.15under Minnesota Statutes, sections 115B.39 14.16to 115B.42.

14.1714.18Sec. 9. BOARD OF WATER AND SOIL RESOURCES

14.19Subdivision 1.Total Appropriation$12,000,000

14.20To the Board of Water and Soil Resources 14.21for the purposes specified in the following 14.22subdivisions.

14.23Subd. 2.RIM Conservation Reserve6,000,000

14.24(a) To acquire conservation easements from 14.25landowners to preserve, restore, create, and 14.26enhance wetlands; restore and enhance rivers 14.27and streams, riparian lands, and associated 14.28uplands in order to protect soil and water 14.29quality; support fish and wildlife habitat; 14.30reduce flood damage; and provide other 14.31public benefits. The provisions of Minnesota 14.32Statutes, section 103F.515, apply to this 14.33program. Of this appropriation, up to ten 15.1percent may be used to implement the 15.2program.15.3(b) The board is authorized to enter into 15.4new agreements and amend past agreements 15.5with landowners as required by Minnesota 15.6Statutes, section 103F.515, subdivision 5, to 15.7allow for restoration, including overseeding 15.8and harvesting of native prairie vegetation for 15.9use for energy production in a manner that 15.10does not devalue the natural habitat, water 15.11quality benefits, or carbon sequestration 15.12functions of the area enrolled in the easement. 15.13This shall occur after seed production and 15.14minimize impacts on wildlife. Of this 15.15appropriation, up to five percent may be used 15.16for restoration, including overseeding.

15.1715.18Subd. 3.Wetland Replacement Due to Public Road Projects6,000,000

15.19To acquire land for wetland restoration or 15.20preservation to replace wetlands drained 15.21or filled as a result of the repair or 15.22reconstruction, replacement, or rehabilitation 15.23of existing public roads as required by 15.24Minnesota Statutes, section 103G.222. 15.25The purchase price paid for acquisition 15.26of land, fee, or perpetual easement must 15.27be the fair market value as determined 15.28by the board. The board may enter into 15.29agreements with the federal government, 15.30other state agencies, political subdivisions, 15.31and nonprofit organizations or fee owners to 15.32acquire land and restore and create wetlands 15.33and to acquire existing wetland banking 15.34credits. Acquisition of or the conveyance 15.35of land may be in the name of the political 15.36subdivision.

16.1Sec. 10. AGRICULTURE$706,000

16.2To the commissioner of administration for 16.3design and installation of an emergency 16.4power system for the shared Agriculture and 16.5Health Lab Building.

16.6Sec. 11. RURAL FINANCE AUTHORITY$33,000,000

16.7For the purposes set forth in the Minnesota 16.8Constitution, article XI, section 5, paragraph 16.9(h), to the Rural Finance Authority to 16.10purchase participation interests in or to 16.11make direct agricultural loans to farmers 16.12under Minnesota Statutes, chapter 41B. 16.13This appropriation is for the beginning 16.14farmer program under Minnesota Statutes, 16.15section 41B.039; the loan restructuring 16.16program under Minnesota Statutes, section 16.1741B.04; the seller-sponsored program under 16.18Minnesota Statutes, section 41B.042; the 16.19agricultural improvement loan program 16.20under Minnesota Statutes, section 41B.043; 16.21and the livestock expansion loan program 16.22under Minnesota Statutes, section 41B.045. 16.23All debt service on bond proceeds used to 16.24finance this appropriation must be repaid 16.25by the Rural Finance Authority under 16.26Minnesota Statutes, section 16A.643. Loan 16.27participations must be priced to provide full 16.28interest and principal coverage and a reserve 16.29for potential losses. Priority for loans must 16.30be given first to basic beginning farmer loans, 16.31second to seller-sponsored loans, and third to 16.32agricultural improvement loans.

16.3316.34Sec. 12. MINNESOTA ZOOLOGICAL GARDEN$4,000,000

17.1To the Minnesota Zoological Garden for 17.2capital asset preservation and betterments to 17.3infrastructure and exhibits at the Minnesota 17.4Zoo to be spent in accordance with Minnesota 17.5Statutes, section 16B.307.

17.6Sec. 13. ADMINISTRATION

17.7Subdivision 1.Total Appropriation$50,555,000

17.8To the commissioner of administration for 17.9the purposes specified in this section.

17.10Subd. 2.Asset Preservation500,000

17.11For asset preservation studies and projects 17.12on properties managed by the commissioner. 17.13This appropriation must be spent in 17.14accordance with Minnesota Statutes, section 17.1516B.307. This appropriation includes money 17.16to complete design for and to renovate or 17.17replace the house of representatives TV 17.18control room heating, ventilating, and air 17.19conditioning system in the Capitol building.

17.20Subd. 3.Capitol Restoration Appropriation44,000,000

17.21(a) This appropriation may be used for one or 17.22more of the following purposes:17.23(1) to design, construct, and equip a new 17.24tunnel extending from the Capitol building 17.25and passing under University Avenue, and 17.26associated improvements, in accordance 17.27with recommendation number 6 of the 17.28Comprehensive Master Plan and the 17.29final report of the Committee on Capitol 17.30Complex Security, dated April 1, 2011, with 17.31construction to be coordinated with light rail 17.32construction time frames;18.1(2) for predesign and design of the renovation 18.2and restoration of the State Capitol building, 18.3including preparation of design guidelines 18.4and a historic structures report;18.5(3) for repairs to exterior stone, window 18.6replacement, and preparation of mechanical 18.7space in the attic of the State Capitol 18.8building;18.9(4) for construction to restore and improve 18.10the Capitol building and grounds, including 18.11exterior stone repair and the construction 18.12activities listed as part of sequence A 18.13in the 2012 Comprehensive Master Plan 18.14dated February 2012, prepared by MOCA, 18.15including hazardous materials abatement; 18.16and18.17(5) up to $5,000,000 of this appropriation 18.18may be used to predesign, design, conduct 18.19hazardous materials abatement, construct, 18.20renovate and remodel, and furnish and equip 18.21the State Office Building, Administration 18.22Building, Centennial Office Building, 321 18.23Grove Street Buildings, and such other 18.24properties located on the Capitol campus as 18.25determined by the commissioner to meet 18.26temporary and permanent office and other 18.27space needs occasioned by and in furtherance 18.28of an efficient restoration of the State Capitol 18.29building and for the efficient and effective 18.30function of the tenants currently located in 18.31the Capitol building.18.32(b) Money appropriated under paragraph (a), 18.33clauses (1) to (3), may be spent as of the 18.34effective date.19.1(c) Money appropriated under paragraph 19.2(a), clauses (4) and (5), may not be spent 19.3unless and until the conditions in Minnesota 19.4Statutes, section 15B.15, have been met.

19.519.6Subd. 4.Capital Asset Preservation and Replacement Account1,000,000

19.7To be spent in accordance with Minnesota 19.8Statutes, section 16A.632.

19.919.10Subd. 5.Hennepin County, Washburn Center for Children5,000,000

19.11For a grant to Hennepin County to acquire 19.12and prepare a site for and to predesign, 19.13design, construct, furnish, and equip a new 19.14Washburn Center for Children that will be 19.15used to provide mental health services to 19.16children. The county is authorized to take 19.17actions and enter into agreements needed 19.18to perform the functions set forth in this 19.19section, and the agreements may include 19.20provisions and conditions that the county 19.21negotiates. The county may enter into a 19.22lease or management contract for the new 19.23center with a nonprofit entity. The lease or 19.24management contract must comply with the 19.25requirements of Minnesota Statutes, section 19.2616A.695. This appropriation is not available 19.27until the commissioner has determined that 19.28at least an equal amount has been committed 19.29or expended from nonstate resources.

19.30Subd. 6.Peace Officers Memorial55,000

19.31To complete design and renovation of the 19.32Peace Officers Memorial on the Capitol 19.33grounds.

19.34Sec. 14. AMATEUR SPORTS$375,000

20.1To the Minnesota Amateur Sports 20.2Commission to replace HVAC heating and 20.3cooling units in the Indoor Sports Hall at the 20.4National Sports Center in Blaine.

20.5Sec. 15. MILITARY AFFAIRS

20.6Subdivision 1.Total Appropriation$23,500,000

20.7To the adjutant general for the purposes 20.8specified in this section.

20.9Subd. 2.Asset Preservation4,000,000

20.10For asset preservation improvements and 20.11betterments of a capital nature at military 20.12affairs facilities statewide, to be spent in 20.13accordance with Minnesota Statutes, section 20.1416B.307.

20.1520.16Subd. 3.Camp Ripley Education Center Addition19,500,000

20.17To complete the construction, furnishing, and 20.18equipping of an addition to the Camp Ripley 20.19Education Center (Building #6-76). The 20.20addition will include lodging, classroom, and 20.21dining facilities.

20.22Subd. 4.Unspent Appropriations

20.23The unspent portion of an appropriation for 20.24a project in this section that is complete, 20.25upon written notice to the commissioner of 20.26management and budget, is available for 20.27asset preservation under Minnesota Statutes, 20.28section 16B.307. Minnesota Statutes, section 20.2916A.642, applies from the date of the 20.30original appropriation to the unspent amount 20.31transferred.

20.32Sec. 16. TRANSPORTATION

20.33Subdivision 1.Total Appropriation$49,400,000

21.1This appropriation is to the commissioner of 21.2transportation for the purposes specified in 21.3this section.

21.421.5Subd. 2.Local Bridge Replacement and Rehabilitation30,000,000

21.6This appropriation is from the bond proceeds 21.7account in the state transportation fund 21.8to match federal money and to replace 21.9or rehabilitate local deficient bridges as 21.10provided in Minnesota Statutes, section 21.11174.50. To the extent practicable, the 21.12commissioner shall expend the funds as 21.13provided under Minnesota Statutes, section 21.14174.50, subdivisions 6c and 7, paragraph (c).21.15Political subdivisions may use grants made 21.16under this subdivision to construct or 21.17reconstruct bridges, including but not limited 21.18to:21.19(1) matching federal aid grants to construct 21.20or reconstruct key bridges;21.21(2) paying the costs of preliminary 21.22engineering and environmental studies 21.23authorized under Minnesota Statutes, section 21.24174.50, subdivision 6a;21.25(3) paying the costs to abandon an existing 21.26bridge that is deficient and in need of 21.27replacement, but where no replacement will 21.28be made; and 21.29(4) paying the costs to construct a road 21.30or street to facilitate the abandonment 21.31of an existing bridge determined by 21.32the commissioner to be deficient, if the 21.33commissioner determines that construction 21.34of the road or street is more economical than 21.35replacement of the existing bridge.

22.122.2Subd. 3.Local Road Improvement Fund Grants10,000,000

22.3From the bond proceeds account in the state 22.4transportation fund as provided in Minnesota 22.5Statutes, section 174.50, for construction and 22.6reconstruction of local roads with statewide 22.7or regional significance under Minnesota 22.8Statutes, section 174.52, subdivision 4, or for 22.9grants to counties to assist in paying the costs 22.10of rural road safety capital improvement 22.11projects on county state-aid highways 22.12under Minnesota Statutes, section 174.52, 22.13subdivision 4a.

22.14Subd. 4.Greater Minnesota Transit6,400,000

22.15For capital assistance for publicly owned 22.16greater Minnesota transit systems to be used 22.17to design, construct, and equip transit capital 22.18facilities under Minnesota Statutes, section 22.19174.24, subdivision 3c.

22.2022.21Subd. 5.Railroad Warning Devices Replacement2,000,000

22.22To design, construct, and equip the 22.23replacement of active highway rail grade 22.24crossing warning safety devices that have 22.25reached the end of their useful life.

22.26Subd. 6.Port Development Assistance1,000,000

22.27For grants under Minnesota Statutes, chapter 22.28457A, for publicly owned capital projects.

22.29Sec. 17. METROPOLITAN COUNCIL

22.30Subdivision 1.Total Appropriation$12,836,000

22.31To the Metropolitan Council for the purposes 22.32specified in this section.

22.3322.34Subd. 2.Metropolitan Regional Parks Capital Improvements4,586,000

23.1For the cost of improvements and betterments 23.2of a capital nature and acquisition by the 23.3council and local government units of 23.4regional recreational open-space lands in 23.5accordance with the council's policy plan 23.6as provided in Minnesota Statutes, section 23.7473.147. This appropriation must not be 23.8used to purchase easements.

23.923.10Subd. 3.Municipal Wastewater Systems - Inflow and Infiltration Grants4,000,000

23.11For grants to cities within the metropolitan 23.12area, as defined in Minnesota Statutes, 23.13section 473.121, subdivision 2, for capital 23.14improvements in municipal wastewater 23.15collection systems to reduce the amount 23.16of inflow and infiltration to the council's 23.17metropolitan sanitary sewer disposal system. 23.18To be eligible for a grant, a city must be 23.19identified by the council as a contributor of 23.20excessive inflow or infiltration. Grants from 23.21this appropriation are for up to 50 percent of 23.22the cost to mitigate inflow and infiltration in 23.23the publicly owned municipal wastewater 23.24collection systems. The council must 23.25award grants based on applications from 23.26eligible cities that identify eligible capital 23.27costs and include a timeline for inflow and 23.28infiltration mitigation construction, pursuant 23.29to guidelines established by the council.

23.30Subd. 4.Phillips Community Center1,750,000

23.31For a grant to the Minneapolis Park and 23.32Recreation Board to predesign, design, 23.33engineer, reconstruct, renovate, furnish, 23.34and equip the Phillips Community Center 23.35indoor competitive swimming pool and to 24.1predesign, design, engineer, and construct 24.2an additional indoor multipurpose family 24.3pool and facilities associated with an aquatic 24.4center in the community center, subject to 24.5Minnesota Statutes, section 16A.695.24.6This appropriation is not available until 24.7the commissioner determines that at least 24.8$350,000 is committed from nonstate 24.9sources.

24.1024.11Subd. 5.Minneapolis Transportation Interchange2,500,000

24.12For a grant to Hennepin County or the 24.13Hennepin County Regional Railroad 24.14Authority for environmental analysis, 24.15engineering, design, acquisition of real 24.16property or interests in real property, and 24.17site preparation for and construction of the 24.18Minneapolis Transportation Interchange 24.19Facility located in the vicinity of the 24.20confluence of the Hiawatha Light Rail 24.21Transit line and the Northstar Commuter Rail 24.22line.

24.23Sec. 18. HUMAN SERVICES

24.24Subdivision 1.Total Appropriation$7,683,000

24.25To the commissioner of administration for 24.26the purposes specified in this section.

24.27Subd. 2.Asset Preservation2,000,000

24.28For asset preservation improvements and 24.29betterments of a capital nature at Department 24.30of Human Services facilities statewide, to be 24.31spent in accordance with Minnesota Statutes, 24.32section 16B.307.

24.33Subd. 3.Maplewood - Harriet Tubman Center2,000,000

25.1For a grant to the city of Maplewood to 25.2design, renovate, and equip Harriet Tubman 25.3Center East to be used as a regional safety 25.4service center for domestic violence shelter, 25.5legal services, youth programs, mental and 25.6chemical health services, and community 25.7education.

25.8Subd. 4.Minnesota Security Hospital - Phase I3,683,000

25.9For predesign and design of the first phase 25.10of a two-phase project to remodel existing 25.11facilities and develop new residential, 25.12program, activity, and ancillary facilities for 25.13the Minnesota Security Hospital on the upper 25.14campus of the St. Peter Regional Treatment 25.15Center.

25.16Sec. 19. VETERANS AFFAIRS

25.17Subdivision 1.Total Appropriation$7,416,000

25.18To the commissioner of administration 25.19for the purposes specified in this section. 25.20The commissioner must allocate money 25.21appropriated in this section so as to maximize 25.22the use of all available federal funding.

25.23Subd. 2.Asset Preservation3,000,000

25.24For asset preservation improvements and 25.25betterments of a capital nature at veterans 25.26homes and cemeteries statewide, to be spent 25.27in accordance with Minnesota Statutes, 25.28section 16B.307.

25.2925.30Subd. 3.Minneapolis Veterans Home Building 17 South3,050,000

25.31For predesign and design for demolition of 25.32the south wing of Building 17 and adjoining 25.33facilities, and designing the south wing 25.34of Building 17 as a new skilled nursing 26.1building. This appropriation may also be 26.2used to design a new distribution service 26.3tunnel on the Minneapolis campus.

26.426.5Subd. 4.Minneapolis Veterans Home Centralized Pharmacy1,366,000

26.6To predesign, design, remodel, and furnish 26.7historic Building 13 to be used as the veterans 26.8homes' central pharmacy.

26.9Sec. 20. CORRECTIONS

26.10Subdivision 1.Total Appropriation$9,128,000

26.11To the commissioner of administration for 26.12the purposes specified in this section.

26.13Subd. 2.Asset Preservation5,000,000

26.14For improvements and betterments of a 26.15capital nature at Minnesota correctional 26.16facilities statewide, in accordance with 26.17Minnesota Statutes, section 16B.307.

26.1826.19Subd. 3.Minnesota Correctional Facility - Stillwater

26.20Well and Water Treatment Facility3,391,000

26.21To complete design; cap an old well; install 26.22a new well; replace piping between wells, 26.23water tower, and facility intake; replace water 26.24treatment equipment; and design, construct, 26.25furnish, and equip a new building to house 26.26water treatment equipment.

26.2726.28Subd. 4.Northeast Regional Correctional Center (NERCC)737,000

26.29For a grant to the Arrowhead Regional 26.30Corrections Joint Powers Board for asset 26.31preservation improvements and betterments 26.32of a capital nature at the Northeast Regional 26.33Correctional Center (NERCC).

27.1Subd. 5.Unspent Appropriations

27.2The unspent portion of an appropriation for 27.3a project in this section that is complete, 27.4upon written notice to the commissioner of 27.5management and budget, is available for 27.6asset preservation under Minnesota Statutes, 27.7section 16B.307, at the same correctional 27.8facility as the project for which the original 27.9appropriation was made. Minnesota Statutes, 27.10section 16A.642, applies from the date of the 27.11original appropriation to the unspent amount 27.12transferred.

27.1327.14Sec. 21. EMPLOYMENT AND ECONOMIC DEVELOPMENT

27.15Subdivision 1.Total Appropriation$76,500,000

27.16To the commissioner of employment and 27.17economic development for the purposes 27.18specified in this section.

27.1927.2027.21Subd. 2.Greater Minnesota Business Development Public Infrastructure Grant Program6,000,000

27.22For grants under Minnesota Statutes, section 27.23116J.431.27.24This appropriation may be used for a grant 27.25to the Lake Superior-Poplar River Water 27.26District to acquire property interests for, 27.27engineer, design, permit, and construct works 27.28and systems to transport and treat water 27.29from Lake Superior through the Poplar River 27.30Valley to serve domestic and irrigation water 27.31users and commercial, stock watering, and 27.32industrial users. Notwithstanding Minnesota 27.33Statutes, section 116J.431, a grant to the 27.34district is not subject to any limit in grant 27.35amount or match requirement, but a grant 28.1to the district is not available until at least 28.2$1,200,000 has been committed to the project 28.3from nonstate sources. Expenditures made 28.4on or after October 1, 2011, shall count 28.5towards the nonstate match.

28.6Subd. 3.Redevelopment Account3,000,000

28.7For purposes of the redevelopment account 28.8under Minnesota Statutes, sections 116J.571 28.9to 116J.575.

28.1028.11Subd. 4.Transportation Economic Development Program 3,000,000

28.12For grants under Minnesota Statutes, section 28.13116J.436.

28.1428.15Subd. 5.Business Development Through Capital Project Grants 47,500,000

28.16For grants under Minnesota Statutes, section 28.17116J.433.

28.1828.19Subd. 6.Austin Port Authority - Research and Technology Center13,500,000

28.20For a grant to the Austin Port Authority to 28.21design and construct a new building addition 28.22to the Hormel Institute, including research 28.23labs, research technology space, and support 28.24offices. This appropriation is not available 28.25until the commissioner has determined that 28.26at least an equal amount has been committed 28.27to the project from nonstate sources.

28.2828.29Subd. 7.Bemidji Regional Public Television Station3,000,000

28.30For a grant to the city of Bemidji to construct, 28.31furnish, and equip a regional public 28.32television station in the city of Bemidji. 28.33This appropriation is not available until the 28.34commissioner determines that a 25 percent 29.1match has been committed to the project 29.2from nonstate sources.

29.3Subd. 8.South St. Paul - Floodwall Extension500,000

29.4For a grant to the city of South St. Paul 29.5for the predesign and design, including 29.6preliminary engineering evaluations to 29.7determine the environmental impact, exact 29.8location, and design features of a floodwall 29.9extension on the west shore of the Mississippi 29.10River from the area of Interstate Highway 29.11494 to the southern border of South St. Paul. 29.12This appropriation is not available until the 29.13commissioner of management and budget 29.14determines that at least an equal amount 29.15is committed to the project from nonstate 29.16sources.

29.17Sec. 22. PUBLIC FACILITIES AUTHORITY

29.18Subdivision 1.Total Appropriation$23,500,000

29.19To the Public Facilities Authority for the 29.20purposes specified in this section.

29.21Subd. 2.State Match for Federal Grants8,500,000

29.22To match federal grants for the clean water 29.23revolving fund under Minnesota Statutes, 29.24section 446A.07, and the drinking water 29.25revolving fund under Minnesota Statutes, 29.26section 446A.081.29.27This appropriation must be used for qualified 29.28capital projects.

29.2929.30Subd. 3.Wastewater Infrastructure Funding Program15,000,000

29.31For grants to eligible municipalities under the 29.32wastewater infrastructure funding program 29.33under Minnesota Statutes, section 446A.072.30.1If a grant is made from this appropriation 30.2to the Central Iron Range Sanitary Sewer 30.3District to supplement previous wastewater 30.4infrastructure funding grants to design, 30.5construct, furnish, and equip new wastewater 30.6treatment facilities, lift stations, and 30.7forcemains, it is not subject to the limitations 30.8on the availability or amount of the grant in 30.9Minnesota Statutes, section 446A.072, but 30.10the grant must not exceed $5,000,000.

30.11Sec. 23. HOUSING FINANCE AGENCY$5,500,000

30.12To the Housing Finance Agency to finance 30.13the rehabilitation of public housing under 30.14Minnesota Statutes, section 462A.202, 30.15subdivision 3a. For purposes of this 30.16section, "public housing" means housing for 30.17low-income persons and households financed 30.18by the federal government and owned and 30.19operated by public housing authorities and 30.20agencies formed by cities and counties. 30.21Eligible public housing authorities must 30.22have a public housing assessment system 30.23rating of standard or above. Priority must be 30.24given to proposals that maximize federal or 30.25local resources to finance the capital costs. 30.26The priority in Minnesota Statutes, section 30.27462A.202, subdivision 3a, for projects to 30.28increase the supply of affordable housing and 30.29the restrictions of Minnesota Statutes, section 30.30462A.202, subdivision 7, do not apply to this 30.31appropriation. 

30.3230.33Sec. 24. MINNESOTA HISTORICAL SOCIETY

30.34Subdivision 1.Total Appropriation$3,250,000

31.1To the Minnesota Historical Society for the 31.2purposes in this section.

31.3Subd. 2.Historic Sites Asset Preservation2,500,000

31.4For capital improvements and betterments 31.5at state historic sites, buildings, landscaping 31.6at historic buildings, exhibits, markers, and 31.7monuments, to be spent in accordance with 31.8Minnesota Statutes, section 16B.307. The 31.9society shall determine project priorities as 31.10appropriate based on need.

31.1131.12Subd. 3.County and Local Preservation Grants 750,000

31.13To be allocated to county and local 31.14jurisdictions as matching money for historic 31.15preservation projects of a capital nature, 31.16as provided in Minnesota Statutes, section 31.17138.0525.

31.18Sec. 25. BOND SALE EXPENSES$560,000

31.19To the commissioner of management 31.20and budget for bond sale expenses under 31.21Minnesota Statutes, section 16A.641, 31.22subdivision 8.31.23    Sec. 26. BOND SALE AUTHORIZATION.31.24    Subdivision 1.Bond proceeds fund.To provide the money appropriated in this act 31.25from the bond proceeds fund, the commissioner of management and budget shall sell and 31.26issue bonds of the state in an amount up to $526,858,000 in the manner, upon the terms, 31.27and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and 31.28by the Minnesota Constitution, article XI, sections 4 to 7.31.29    Subd. 2.Transportation fund.To provide the money appropriated in this act from 31.30the state transportation fund, the commissioner of management and budget shall sell and 31.31issue bonds of the state in an amount up to $40,000,000 in the manner, upon the terms, and 31.32with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by 31.33the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except 32.1accrued interest and any premium received on the sale of the bonds, must be credited to 32.2a bond proceeds account in the state transportation fund.32.3    Sec. 27. [15B.155] CAPITOL RESTORATION PROJECT.32.4    Subdivision 1.Consultation and collaboration.The commissioner shall consult 32.5and collaborate with representatives designated by the governor, the majority leader of 32.6the senate, the speaker of the house, the chief justice of the Minnesota Supreme Court, 32.7the attorney general, Capitol Area and Architectural Planning Board, and the director of 32.8the Minnesota Historical Society regarding the design and construction process for the 32.9restoration of the Capitol building.32.10    Subd. 2.Changes to space allocation.No changes shall be made to the current 32.11amount and location of space in the Capitol building for the house of representatives, 32.12senate, Supreme Court, and constitutional officers, unless approved as follows:32.13(1) for space currently allocated to the house of representatives, by the chief clerk 32.14of the house of representatives;32.15(2) for space currently allocated to the senate, by the secretary of the senate;32.16(3) for space currently allocated to the judicial branch, by the court administrator; and32.17(4) for space currently allocated to the attorney general's office, by the attorney 32.18general.32.19    Subd. 3.Sequencing.Construction work shall be sequenced to maintain occupancy 32.20in the house of representatives and senate chambers during regular legislative sessions, 32.21unless otherwise approved by the speaker of the house and the majority leader of the 32.22senate for respective chambers.32.23    Subd. 4.Duties of commissioner.(a) By January 15, 2013, the commissioner 32.24of administration shall submit a space recommendation report to the majority leader 32.25of the senate, the speaker of the house, and the chairs of the legislative committees 32.26with primary jurisdiction over the Capitol Area Architectural and Planning Board. The 32.27space recommendation report shall identify appropriate and required functions of the 32.28Capitol building and make recommendations to address space requirements for the 32.29tenants currently located in the Capitol building for the effective and efficient function 32.30of state government. In preparing the report, the commissioner shall consult with the 32.31Capitol Preservation Commission and representatives designated by the governor, the 32.32secretary of the senate, the chief clerk of the house of representatives, the director of the 32.33Minnesota Historical Society, and the state court administrator. Before the appropriations 32.34in subdivision 2, clauses (4) and (5), may be spent, the recommendations in the report 33.1must be approved by the governor, the secretary of the senate, and the chief clerk of the 33.2house of representatives.33.3(b) By July 15, 2013, the commissioner shall submit a report describing final plans 33.4and specifications for the restoration of the Capitol building to the majority leader of the 33.5senate, the speaker of the house, and to the chairs of the committees in the senate and 33.6house of representatives with primary jurisdiction over the Capitol Area Architectural and 33.7Planning Board. Before the appropriations in subdivision 2, clauses (4) and (5), may be 33.8spent, the plans and specifications must be approved by the governor, the secretary of the 33.9senate, and the chief clerk of the house of representatives.33.10(c) Notwithstanding sections 16C.05, subdivision 2, paragraph (b); and 16C.08, 33.11subdivision 3, clause (5), the commissioner of administration may enter into consultant 33.12and construction contracts on the Capitol restoration and repair project with a term of 33.13up to ten years.33.14(d) Notwithstanding section 16B.31, subdivision 2, the commissioner of 33.15administration may proceed with the Capitol restoration and repair project before 33.16obtaining an appropriation to complete the entire project.33.17(e) On or before December 1 of each year until final completion of the restoration 33.18project, the commissioner of administration shall submit in writing to the governor, chairs 33.19of the senate Finance and Capital Investment Committees, and chairs of the house of 33.20representatives Ways and Means and Capital Investment Committees the estimated annual 33.21amount needed for the restoration project for the upcoming fiscal year. The construction 33.22manager and the commissioner shall enter into a guaranteed maximum price contract. In 33.23the absence of an appropriation sufficient for the continued performance of work on 33.24an annual basis as determined by the commissioner of administration, the construction 33.25manager shall not be bound to complete the remaining work within the guaranteed 33.26maximum price in the contract.33.27(f) With the approval of the commissioner of administration, the construction 33.28manager may bid trade work in accordance with section 16C.34, subdivision 3, before 33.29the enactment of an appropriation sufficient to fully fund the trade work for completion 33.30of the full project described in the Comprehensive Master Plan. The construction 33.31manager shall enter into guaranteed maximum price contracts with subcontractors for 33.32the trade work. In the event the legislature fails to appropriate money sufficient for the 33.33continued performance of work on an annual basis as determined by the commissioner 33.34of administration, the subcontractors shall not be bound to complete the remaining work 33.35within the guaranteed maximum price in the contract. Contracts with subcontractors for 33.36trade work under this paragraph must include terms consistent with this paragraph.34.1    Sec. 28. Minnesota Statutes 2010, section 16A.633, is amended by adding a 34.2subdivision to read:34.3    Subd. 4.Report on jobs created or retained.By September 1 of each 34.4odd-numbered year, the commissioner must report to legislative committees with 34.5jurisdiction over capital investment on the jobs created or retained as a result of capital 34.6project funding by the state, whether with state general obligation bond proceeds or other 34.7state funding sources, during the previous biennium. Each state agency must provide the 34.8commissioner the information necessary, and must require its capital project grantees to 34.9provide the information necessary, for the commissioner to make the report. The report 34.10must include, but is not limited to, the following information: the number and types of 34.11jobs for each project, whether the jobs are new or retained, where the jobs are located, 34.12and pay ranges of the jobs. The Board of Regents of the University of Minnesota, the 34.13Board of Trustees of the Minnesota State Colleges and Universities, and each state agency 34.14receiving an appropriation for a capital project shall collect and provide the information at 34.15the time and in the manner required by the commissioner.34.16    Sec. 29. Minnesota Statutes 2011 Supplement, section 16A.641, subdivision 7, is 34.17amended to read:34.18    Subd. 7. Credit of proceeds. (a) Proceeds of bonds issued under each law must be 34.19credited by the commissioner to a special fund, as provided in this subdivision. For the 34.20purpose of this subdivision, "proceeds of bonds" means and includes the principal amount 34.21of the bonds and any premium and accrued interest received on the sale of the bonds.34.22(b) Accrued interest received on sale of the bonds must be credited to the state bond 34.23fund created by the Constitution, article XI, section 7. Any premium received on the sale 34.24of the bonds on or prior to December 1, 2012, must be credited to the state bond fund. Any 34.25premium received on the sale of the bonds, except for refunding bonds,  after December 1, 34.262012, must be credited to either the bond proceeds fund where it is used to reduce the par 34.27amount of the bonds issued or the state bond fund or used to reduce the par amount of the 34.28bond issue at the time of sale. Any premium received on the sale of the refunding bonds, 34.29after December 1, 2012, must be used or credited in accordance with paragraph (f).34.30(c) Except as otherwise provided by law, proceeds of state bonds issued under the 34.31Constitution, article XI, section 5, clause (a), must be credited to the bond proceeds fund 34.32established by section 
         16A.631.34.33(d) Proceeds of state highway bonds must be credited to the trunk highway fund 34.34under the Constitution, article XIV, section 6.35.1(e) Proceeds of bonds issued for programs of grants or loans to political subdivisions 35.2must be credited to special accounts in the bond proceeds fund or to special funds 35.3established by laws stating the purposes of the grants or loans, and the standards and 35.4criteria under which an executive agency is authorized to make them.35.5(f) Proceeds of refunding bonds must be either: (1) credited to the state bond fund 35.6as provided in section 
         16A.66, subdivision 1; or (2) in the case of premium received on 35.7the sale of the refunding bonds, used to reduce the par amount of the bond issue at the 35.8time of the bond sale.35.9(g) Proceeds of other bonds must be credited as provided in the law authorizing 35.10their issuance.35.11    Sec. 30. Minnesota Statutes 2010, section 16A.641, subdivision 9, is amended to read:35.12    Subd. 9. Special accounts; appropriation. (a) The commissioner shall establish 35.13separate accounts in the state bond fund for:35.14(1) state building bonds, and for other state bonds issued for each program of 35.15grants to political subdivisions for a particular class of capital expenditures, to record 35.16debt service payments and receipts of amounts appropriated from the general fund under 35.17subdivision 10;35.18(2) state highway bonds, to record debt service payments, receipts of amounts 35.19appropriated for debt service from the trunk highway fund pursuant to the Constitution, 35.20article XIV, section 6, and additional receipts, if any, of amounts appropriated from the 35.21general fund under subdivision 10;35.22(3) state bonds issued for each capital loan and for each program of capital loans 35.23to agencies or political subdivisions, to record debt service payments, receipts of loan 35.24repayments appropriated for debt service or reimbursement of debt service by the law 35.25authorizing the loan or program, and any additional receipts of amounts appropriated from 35.26the general fund under subdivision 10; and35.27(4) refunding bonds, as provided in section 
         16A.66, subdivision 1.35.28(b) All money credited, transferred, or appropriated to the state bond fund and all 35.29income from the investment of that money is appropriated to the commissioner for the 35.30payment of principal and interest on state bonds or, in the case of premium received on the 35.31sale of refunding bonds, as provided by subdivision 7, paragraph (f).35.32    Sec. 31. Minnesota Statutes 2011 Supplement, section 16A.96, is amended by adding a 35.33subdivision to read:36.1    Subd. 10.Validation.(a) Appropriation bonds issued under this section may be 36.2validated in the manner provided by this subdivision. If comparable appropriation bonds 36.3are judicially determined to be valid, nothing in this subdivision shall be construed to 36.4prevent sale or delivery of any appropriation bonds or notes after entry of a judgment of 36.5validation by the Minnesota Supreme Court as provided in this subdivision with respect 36.6to the appropriation bonds authorized under this section.36.7(b) Any appropriation bonds issued under this section that are validated shall be 36.8validated in the manner provided by this subdivision.36.9(c) The Minnesota Supreme Court shall have original jurisdiction to determine the 36.10validation of appropriation bonds and all matters connected with the issuance of the bonds.36.11(d) The commissioner may determine the commissioner's authority to issue 36.12appropriation bonds and the legality of all proceedings in connection with issuing bonds. 36.13For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme 36.14Court against the state and the taxpayers and citizens.36.15(e) As a condition precedent to filing of a complaint for the validation of 36.16appropriation bonds, the commissioner shall take action providing for the issuance of 36.17appropriation bonds in accordance with law.36.18(f) The complaint shall set out the state's authority to issue appropriation bonds, the 36.19action or proceeding authorizing the issue and its adoption, all other essential proceedings 36.20had or taken in connection with issuing bonds, the amount of the appropriation bonds to 36.21be issued and the maximum interest they are to bear, and all other pertinent matters.36.22(g) The Minnesota Supreme Court shall issue an order directed against the state and 36.23taxpayers, citizens, and others having or claiming any right, title, or interest affected by 36.24the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons, 36.25in general terms and without naming them, and the state through its attorney general to 36.26appear before the Minnesota Supreme Court at a designated time and place and show 36.27why the complaint should not be granted and the proceedings and appropriation bonds 36.28validated. A copy of the complaint and order shall be served on the attorney general at 36.29least 20 days before the time fixed for hearing. The attorney general shall examine the 36.30complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or 36.31untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds 36.32in question has not been duly authorized, defense shall be made by the attorney general as 36.33the attorney general deems appropriate.36.34(h) Before the date set for hearing, as directed by the Minnesota Supreme Court, 36.35either the clerk of the Minnesota Appellate Courts or the commissioner shall publish a 36.36copy of the order in a legal newspaper of general circulation in Ramsey County and 37.1the state, at least once each week for two consecutive weeks, commencing with the 37.2first publication, which shall not be less than 20 days before the date set for hearing. 37.3By this publication, all taxpayers, citizens, and others having or claiming any right, 37.4title, or interest in the state, are made parties defendant to the action and the Minnesota 37.5Supreme Court has jurisdiction of them to the same extent as if named as defendants in the 37.6complaint and personally served with process.37.7(i) Any taxpayer, citizen, or person interested may become a party to the action by 37.8moving against or pleading to the complaint at or before the time set for hearing. The 37.9Minnesota Supreme Court shall determine all questions of law and fact and make orders 37.10that will enable it to properly try and determine the action and render a final judgment 37.11within 30 days of the hearing with the least possible delay.37.12(j) If the judgment validates appropriation bonds, the judgment is forever conclusive 37.13as to all matters adjudicated and as against all parties affected and all others having or 37.14claiming any right, title, or interest affected by the issuance of appropriation bonds, or to 37.15be affected in any way by issuing the bonds, and the validity of appropriation bonds or of 37.16any revenues pledged for the payment of the bonds, or of the proceedings authorizing the 37.17issuance of the bonds, including any remedies provided for their collection, shall never 37.18be called in question in any court by any person or party.37.19(k)(1) Appropriation bonds, when validated under this section, shall have stamped 37.20or written on the bonds, by the proper officers of the state issuing them, a statement in 37.21substantially the following form: "This bond is one of a series of appropriation bonds, 37.22which were validated by judgment of the Supreme Court of the State of Minnesota, 37.23rendered on ....., (year) ......"37.24(2) A certified copy of the judgment or decree shall be received as evidence in any 37.25court in this state.37.26    Sec. 32. [16B.323] SOLAR ENERGY IN STATE BUILDINGS.37.27    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 37.28have the meanings given.37.29(b) "Made in Minnesota" means the manufacture in this state of:37.30(i) components of a solar thermal system certified by the Solar Rating and 37.31Certification Corporation; or 37.32(ii) solar photovoltaic modules that: 37.33(1) are manufactured at a manufacturing facility in Minnesota that is registered and 37.34authorized to manufacture those solar photovoltaic modules by Underwriters Laboratory, 37.35CSA International, Intertek, or an equivalent independent testing agency; 38.1(2) bear certification marks from Underwriters Laboratory, CSA International, 38.2Intertek, or an equivalent independent testing agency; and  38.3(3) meet the requirements of section 116C.7791, subdivision 3, paragraph (a), 38.4clauses (1), (5), and (6). 38.5 For the purposes of clause (ii), "manufactured" has the meaning given in section 38.6116C.7791, subdivision 1, paragraph (b), clauses (1) and (2).38.7(c) "Major renovation" means a substantial addition to an existing building, or 38.8a substantial change to the interior configuration or the energy system of an existing 38.9building. 38.10(d) "Solar energy system" means solar photovoltaic modules alone or installed in 38.11conjunction with a solar thermal system. 38.12(e) "Solar photovoltaic module" has the meaning given in section 116C.7791, 38.13subdivision 1, paragraph (e). 38.14(f) "Solar thermal system" has the meaning given "qualifying solar thermal project" 38.15in section 216B.2411, subdivision 2, paragraph (e). 38.16(g) "State building" means a building whose construction or renovation is paid 38.17wholly or in part by the state from the bond proceeds fund.38.18    Subd. 2.Solar energy system.(a) As provided in paragraphs (b) to (e), a project 38.19for the construction or major renovation of a state building, after the completion of a 38.20cost-benefit analysis, may include installation of "Made in Minnesota" solar energy 38.21systems of 40 kilowatts capacity on, adjacent, or in proximity to the state building.38.22(b) The capacity of a solar system must be less than 40 kilowatts to the extent 38.23necessary to match the electrical load of the building or to the extent necessary to keep the 38.24costs for the installation below the five percent maximum set by paragraph (c).38.25(c) The cost of the solar system must not exceed five percent of the appropriations 38.26from the bond proceeds fund for the construction or renovation of the state building. 38.27Purchase and installation of a solar thermal system may account for no more than 25 38.28percent of the cost of a solar system installation.38.29(d) The commissioner may exempt a major renovation of a state building from the 38.30requirements of this section if the commissioner finds that the structural soundness or 38.31other physical condition of the state building to be renovated makes the installation of a 38.32solar energy system infeasible.38.33(e) The commissioner may exempt appropriations for construction or major 38.34renovation of a state building authorized before June 30, 2012, from the requirements of 38.35this section if the commissioner determines that the installation of a solar energy system 39.1would require the redesign of program space or major building systems, but in no event 39.2shall more than 20 percent of the applicable projects be exempted under this paragraph.39.3(f) A project subject to this section is ineligible to receive a rebate for the installation 39.4of a solar energy system under section 116C.7791or from any utility.39.5EFFECTIVE DATE.This section is effective the day following final enactment.39.6    Sec. 33. [116J.433] BUSINESS DEVELOPMENT THROUGH CAPITAL 39.7PROJECTS GRANT PROGRAM.39.8    Subdivision 1.Creation of account.A business development through capital 39.9projects account is created in the bond proceeds fund. Money in the account may only be 39.10used for capital costs for eligible projects and public infrastructure.39.11    Subd. 2.Definitions.For purposes of this section:39.12(1) "local governmental unit" means a county, city, town, special district, public 39.13higher education institution, or other political subdivision or public corporation;39.14(2) "governing body" means the city council, board of county commissioners, town 39.15board of supervisors, board of trustees, board of regents, or other body charged with 39.16governing a political subdivision of the state;39.17(3) "public infrastructure" means publicly owned physical infrastructure in this state, 39.18including, but not limited to, wastewater collection and treatment systems, drinking water 39.19systems, storm sewers, utility extensions, telecommunications infrastructure, streets, 39.20roads, bridges, and parking ramps; and39.21(4) "eligible project" means any project for which general obligation bonds of 39.22the state may be issued. Eligible projects must be capital projects for acquisition or 39.23improvement of publicly owned fixed assets having a useful life of at least ten years.39.24    Subd. 3.Grant program established.The commissioner shall make competitive 39.25grants to local governmental units for eligible projects and public infrastructure required 39.26to support an eligible project, which may include: predesign, design, acquisition of land or 39.27buildings, construction, furnishing, and equipping a new or renovated building. The local 39.28government unit may employ or contract with persons, firms, or corporations to perform 39.29one or more or all of the functions of architect, engineer, or construction manager with 39.30respect to all or any part of an eligible project and related public infrastructure. The local 39.31government unit may deliver the eligible project and related public infrastructure through 39.32either a design-build or construction manager at-risk method. To the extent practicable 39.33and at the discretion of the local government unit, the local government unit may have 39.34rights and exercise powers with respect to the acquisition, construction, use, and operation 39.35of an eligible project, as are granted under section 473.756. No consent or approval of 40.1another political subdivision is required for the effectiveness or the exercise by a local 40.2government unit of the rights or powers.40.3    Subd. 4.Application.(a) A local governmental unit must apply to the commissioner 40.4for a grant under this section. At a minimum, a local governmental unit must include the 40.5following information in its application:40.6(1) a resolution of its governing body certifying that the money required to be 40.7supplied by the local governmental unit to complete the project is available and committed;40.8(2) a detailed estimate, along with necessary supporting evidence, of the total costs 40.9of the eligible project;40.10(3) an assessment of the potential or likely use of the site for innovative business 40.11activities after completion of the eligible project;40.12(4) a timeline indicating the major milestones for the eligible project, including 40.13anticipated completion dates; 40.14(5) an estimate of the operating costs for the project for ten years following 40.15completion; and40.16(6) any additional information or material the commissioner prescribes.40.17(b) The determination of whether to make a grant under subdivision 3 is within the 40.18discretion of the commissioner, subject to this section.40.19    Subd. 5.Match.An amount granted under this program must be matched with at 40.20least an equal amount from nonstate sources. Any contribution to a project from nonstate 40.21sources made before a grant award is made under this section shall count towards the 40.22match requirement.40.23    Subd. 6.Priorities.(a) If applications for grants exceed the available appropriation, 40.24grants must be made for projects that, in the commissioner's judgment, provide the 40.25highest return in public benefits for the public costs incurred. In making this judgment, 40.26the commissioner shall evaluate and prioritize eligible projects on the following 40.27characteristics:40.28(1) creation of new jobs, retention of existing jobs, or improvements in the quality of 40.29existing jobs as measured by the wages, skills, or education associated with those jobs;40.30(2) improvement in the quality of existing jobs, based on increases in wages or 40.31improvements in the job duties, training, or education associated with those jobs;40.32(3) increase in the local tax base, based on demonstrated measurable outcomes;40.33(4) demonstration that investment of public dollars in the project will induce private 40.34investment;40.35(5) whether the project provides necessary repair or replacement of existing capital 40.36assets;41.1(6) whether the project reduces operating expenses of or increases revenue from 41.2existing capital asset, thereby offsetting at least a portion of project costs;41.3(7) whether the project provides health or safety benefits;41.4(8) the number of residents served by or who will benefit from the project;41.5(9) demonstration of local support; 41.6(10) the capacity of the project to attract revenue from out of state; and41.7(11) objective cost benefit analysis and return on investment.41.8(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the 41.9commissioner may weigh each factor, depending upon the facts and circumstances, as the 41.10commissioner considers appropriate. In prioritizing projects, the commissioner shall make 41.11an appropriate balance between the metropolitan area and greater Minnesota.41.12    Subd. 7.Sunset.This section expires June 30, 2016.41.13    Sec. 34. [116J.436] TRANSPORTATION ECONOMIC DEVELOPMENT 41.14INFRASTRUCTURE PROGRAM.41.15    Subdivision 1.Grant program established; purpose.The transportation economic 41.16development infrastructure program is created to foster interagency coordination between 41.17the Departments of Transportation and Employment and Economic Development to 41.18finance infrastructure to create economic development opportunities, jobs, and improve all 41.19types of transportation systems statewide.41.20    Subd. 2.Eligible projects.Funds appropriated for the program must be used to 41.21fund predesign, design, acquisition of land, construction, reconstruction, and infrastructure 41.22improvements that will promote economic development, increase employment, and 41.23improve transportation systems to accommodate private investment and job creation.41.24    Subd. 3.Trunk highway projects.Money in the program shall not be used on 41.25trunk highway improvements, but can be used for needed infrastructure improvements 41.26and nontrunk highway improvements in coordination with trunk highway improvement 41.27projects undertaken by the Department of Transportation.41.28    Subd. 4.Application.The commissioners of transportation and employment and 41.29economic development shall design an application process and selection process to 41.30distribute funding to local units of government for publicly owned infrastructure using 41.31criteria that take into account: job creation; increase in local tax base; level of private 41.32investment; leverage of nonstate funds; improvement to the transportation system to serve 41.33the project area; and appropriate geographic balance between the metropolitan area and 41.34greater Minnesota.42.1    Sec. 35. Minnesota Statutes 2010, section 462A.21, is amended by adding a 42.2subdivision to read:42.3    Subd. 33.Housing infrastructure bonds account.The agency may establish a 42.4housing infrastructure bond account as a separate account within the housing development 42.5fund. Proceeds of housing infrastructure bonds and payments made by the state under 42.6section 462A.37 may be credited to the account. The agency may transfer the proceeds of 42.7housing infrastructure bonds to other accounts within the housing development fund that it 42.8determines appropriate to accomplish the purposes for which the bonds are authorized 42.9under section 462A.37.42.10    Sec. 36. [462A.37] HOUSING INFRASTRUCTURE BONDS; 42.11AUTHORIZATION; STANDING APPROPRIATION.42.12    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 42.13have the meanings given.42.14(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.42.15(c) "Community land trust" means an entity that meets the requirements of section 42.16462A.31, subdivisions 1 and 2.42.17(d) "Debt service" means the amount payable in any fiscal year of principal, 42.18premium, if any, and interest on housing infrastructure bonds and the fees, charges, and 42.19expenses related to the bonds.42.20(e) "Foreclosed property" means residential property where foreclosure proceedings 42.21have been initiated or have been completed and title transferred or where title is transferred 42.22in lieu of foreclosure.42.23(f) "Housing infrastructure bonds" means bonds issued by the agency under chapter 42.24462A that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the 42.25Internal Revenue Code, or are tax-exempt bonds that are not private activity bonds, within 42.26the meaning of Section 141(a) of the Internal Revenue Code, for the purpose of financing 42.27or refinancing affordable housing authorized under this chapter.42.28(g) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.42.29(h) "Supportive housing" means housing that is not time-limited and provides or 42.30coordinates with linkages to services necessary for residents to maintain housing stability 42.31and maximize opportunities for education and employment.42.32    Subd. 2.Authorization.(a) The agency may issue up to $30,000,000 in aggregate 42.33principal amount of housing infrastructure bonds in one or more series to which the 42.34payment made under this section may be pledged. The housing infrastructure bonds 43.1authorized in this subdivision may be issued to fund loans, on terms and conditions the 43.2agency deems appropriate, made for one or more of the following purposes:43.3(1) to finance the costs of the construction, acquisition, and rehabilitation of 43.4supportive housing for individuals and families who are without a permanent residence;43.5(2) to finance the costs of the acquisition and rehabilitation of foreclosed or 43.6abandoned housing to be used for affordable rental housing and the costs of new 43.7construction of rental housing on abandoned or foreclosed property where the existing 43.8structures will be demolished or removed;43.9(3) to finance that portion of the costs of acquisition of abandoned or foreclosed 43.10property that is attributable to the land to be leased by community land trusts to low- 43.11and moderate-income homebuyers; and43.12(4) to finance the costs of acquisition and rehabilitation of federally assisted rental 43.13housing and for the refinancing of costs of the construction, acquisition, and rehabilitation 43.14of federally assisted rental housing, including providing funds to refund, in whole or in 43.15part, outstanding bonds previously issued by the agency or another governmental unit to 43.16finance or refinance such costs.43.17(b) Among comparable proposals for permanent supportive housing, preference 43.18shall be given to permanent supportive housing for individuals or families who: (1) either 43.19have been without a permanent residence for at least 12 months or at least four times in 43.20the last three years; or (2) are at significant risk of lacking a permanent residence for 12 43.21months or at least four times in the last three years.43.22    Subd. 3.No full faith and credit.The housing infrastructure bonds are not public 43.23debt of the state, and the full faith and credit and taxing powers of the state are not pledged 43.24to the payment of the housing infrastructure bonds or to any payment that the state agrees 43.25to make under this section. The bonds must contain a conspicuous statement to that effect.43.26    Subd. 4.Appropriation; payment to agency or trustee.(a) The agency must 43.27certify annually to the commissioner of management and budget the actual amount of 43.28annual debt service on each series of bonds issued under subdivision 2.43.29(b) Each July 15, beginning in 2013 and through 2035, if any housing infrastructure 43.30bonds issued under subdivision 2 remain outstanding, the commissioner of management 43.31and budget must transfer to the affordable housing bond account established under 43.32section 462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed 43.33$2,200,000 annually. The amounts necessary to make the transfers are appropriated from 43.34the general fund to the commissioner of management and budget.43.35(c) The agency may pledge to the payment of the housing infrastructure bonds the 43.36payments to be made by the state under this section.44.1    Sec. 37. Laws 2006, chapter 258, section 7, subdivision 23, as amended by Laws 2010, 44.2chapter 399, section 2, is amended to read:

44.3Subd. 23.Trail connections2,010,000

44.4For matching grants under Minnesota 44.5Statutes, section 
         85.019, subdivision 4c.44.6$500,000 is for a grant to Carlton County 44.7to predesign, design, and construct a 44.8nonmotorized pedestrian trail connection 44.9to the Willard Munger State Trail from the 44.10city of Carlton through the city of Scanlon 44.11continuing to the city of Cloquet, along the 44.12St. Louis River in Carlton County.44.13$260,000 is to provide the state match for the 44.14cost of the Soo Line Multiuse Recreational 44.15Bridge project over marked Trunk Highway 44.16169 in Mille Lacs County. 44.17$175,000 is for a grant to the city of Bowlus 44.18in Morrison County to design, construct, 44.19furnish, and equip a trailhead center at the 44.20head of the Soo Line Recreational Trail.44.21$125,000 is for a grant to Morrison 44.22County to predesign, design, construct, 44.23furnish, and equip a park-and-ride lot and 44.24restroom building adjacent to the Soo Line 44.25Recreational Trail at U.S. Highway 10.44.26$950,000 is for a grant to the St. Louis 44.27and Lake Counties Regional Railroad 44.28Authority for land acquisition, engineering, 44.29construction, furnishing, and equipping of 44.30a 19-mile "Boundary Waters Connection" 44.31of the Mesabi Trail from Bearhead State 44.32Park to the International Wolf Center in 44.33Ely. This appropriation is contingent upon 44.34a matching contribution of $950,000 from 45.1other sources, public or private segment of 45.2the Mesabi Trail from County Road 697 in 45.3Breitung Township east through Vermilion 45.4State Park. Notwithstanding Minnesota 45.5Statutes, section 85.019, no local match shall 45.6be required for this grant. Notwithstanding 45.7Minnesota Statutes, section 
         16A.642, the 45.8bond authorization and appropriation of bond 45.9proceeds for this project are available until 45.10June 30, 2014.45.11    Sec. 38. Laws 2006, chapter 258, section 17, subdivision 3, is amended to read:

45.1245.13Subd. 3.Cedar Avenue Bus Rapid Transit (BRT)5,000,000

45.14To the Metropolitan Council or to the council 45.15to grant to Dakota County, the Dakota 45.16County Regional Railroad Authority, or 45.17the Minnesota Valley Transit Authority 45.18for environmental studies, preliminary 45.19engineering, bus lane improvements, and 45.20transit station construction and improvements 45.21in the Cedar Avenue Bus Rapid Transit 45.22Corridor.45.23This appropriation may not be spent for 45.24capital improvements within a trunk highway 45.25right-of-way.45.26EFFECTIVE DATE.This section is effective retroactively from June 2, 2006.45.27    Sec. 39. Laws 2008, chapter 179, section 7, subdivision 27, as amended by Laws 2010, 45.28chapter 189, section 56, and Laws 2010, chapter 399, section 4, is amended to read:

45.2945.30Subd. 27.State Trail Acquisition, Rehabilitation, and Development15,320,000

45.31To acquire land for and to construct and 45.32renovate state trails under Minnesota 45.33Statutes, section 
         85.015.46.1$970,000 is for the Chester Woods Trail 46.2from Rochester to Dover. Notwithstanding 46.3Minnesota Statutes, section 16A.642, the 46.4bond authorization and appropriation of bond 46.5proceeds for this project are available until 46.6June 30, 2016.46.7$700,000 is for the Casey Jones Trail.46.8$750,000 is for the Gateway Trail, to replace 46.9an at-grade crossing of the Gateway Trail 46.10at Highway 120 with a grade-separated 46.11crossing.46.12$1,600,000 is for the Gitchi-Gami Trail 46.13between Silver Bay and Tettegouche State 46.14Park.46.15$1,500,000 is for the Great River Ridge Trail 46.16from Plainview to Elgin to Eyota. 46.17$1,500,000 is for the Heartland Trail.46.18$500,000 is for the Mill Towns Trail from 46.19Lake Byllesby Park to Cannon Falls.46.20Notwithstanding Minnesota Statutes, 46.21section 16A.642, the bond authorization 46.22and appropriation of bond proceeds for this 46.23project are available until December 30, 46.242014.46.25$150,000 is for the Mill Towns Trail within 46.26the city of Faribault.46.27$1,500,000 is for the Minnesota River 46.28Trail from Appleton to Milan and to 46.29the Marsh Lake Dam. Notwithstanding 46.30Minnesota Statutes, section 16A.642, the 46.31bond authorization and appropriation of bond 46.32proceeds for this project are available until 46.33December 30, 2014.47.1$2,000,000 is for the Paul Bunyan Trail from 47.2Walker to Guthrie.47.3$250,000 is for the Root River Trail from 47.4Preston to Forestville State Park.47.5$100,000 is for the Root River Trail, the 47.6eastern extension.47.7$250,000 is for the Root River Trail, the 47.8eastern extension Wagon Wheel.47.9$550,000 is to connect the Stagecoach Trail 47.10with the Douglas Trail in Olmsted County.47.11Notwithstanding Minnesota Statutes, 47.12section 16A.642, the bond authorization 47.13and appropriation of bond proceeds for this 47.14project are available until June 30, 2014.47.15$3,000,000 is to rehabilitate state trails.47.16For any project listed in this subdivision that 47.17the commissioner determines is not ready to 47.18proceed, the commissioner may allocate that 47.19project's money to another state trail project 47.20in this subdivision. The chairs of the house 47.21and senate committees with jurisdiction 47.22over environment and natural resources 47.23and legislators from the affected legislative 47.24districts must be notified of any changes.47.25    Sec. 40. Laws 2008, chapter 179, section 17, subdivision 4, is amended to read:

47.26Subd. 4.Cedar Avenue Bus Rapid Transit4,000,000

47.27To the Metropolitan Council or to the 47.28Council to grant to Dakota County, the 47.29Dakota County Regional Railroad Authority, 47.30or the Minnesota Valley Transit Authority to 47.31acquire land, or an interest in land, and to for47.32design, environmental studies, preliminary 47.33engineering, bus lane improvements, layover 48.1and maintenance facilities, and transit station 48.2construction and improvements in the Cedar 48.3Avenue Bus Rapid Transit corridor in Dakota 48.4County. This appropriation may not be spent 48.5for capital improvements within a trunk 48.6highway right-of-way. This appropriation 48.7is added to the appropriation in Laws 2006, 48.8chapter 258, section 17, subdivision 3.48.9EFFECTIVE DATE.This section is effective retroactively from April 8, 2008.48.10    Sec. 41. Laws 2008, chapter 179, section 18, subdivision 3, as amended by Laws 2011, 48.11First Special Session chapter 12, section 32, is amended to read:

48.1248.13Subd. 3.Systemwide Campus Redevelopment, Reuse, or Demolition3,400,000

48.14To demolish surplus, nonfunctional, or 48.15deteriorated facilities and infrastructure 48.16or to renovate surplus, nonfunctional, or 48.17deteriorated facilities and infrastructure 48.18at Department of Human Services 48.19campuses. These projects must facilitate the 48.20redevelopment or reuse of these campuses 48.21consistent with redevelopment plan concepts 48.22developed and approved under Laws 48.232003, First Special Session chapter 14, 48.24article 6, section 64, subdivision 2. If 48.25a surplus campus is sold or transferred 48.26to a local unit of government, unspent 48.27portions of this appropriation may be 48.28granted to that local unit of government 48.29for the purposes stated in this subdivision.48.30Unspent portions of this appropriation may 48.31be used to design, construct, furnish, and 48.32equip a maintenance and storage facility to 48.33support the maintenance and operation of 48.34the Brainerd campus if the commissioner 48.35determines that it is less expensive than 49.1renovating existing space.  Notwithstanding 49.2Minnesota Statutes, section 16A.642, the 49.3bond authorization and appropriation of bond 49.4proceeds for this project are available until 49.5December 30, 2014.49.6Up to $125,000 is for preparation and 49.7site development, including demolition of 49.8buildings and infrastructure, to implement 49.9the redevelopment and reuse of the Ah Gwah 49.10Ching Regional Treatment Center. This 49.11amount may be granted to Cass County for 49.12the purposes stated in this subdivision. If the 49.13campus is sold or transferred by Cass County 49.14to the city of Walker, unspent portions of 49.15this appropriation may be granted to the city 49.16of Walker for the purposes stated in this 49.17subdivision.49.18    Sec. 42. Laws 2008, chapter 179, section 19, subdivision 4, as amended by Laws 2011, 49.19First Special Session chapter 12, section 34, is amended to read:

49.20Subd. 4.Minneapolis Veterans Home Campus

49.21Building 17 HVAC Replacement1,155,000

49.22To predesign, design, and construct 49.23improvements to heating, ventilation, air 49.24conditioning, and lighting systems and 49.25associated areas serving the south wing of 49.26Building 17. Any unspent funds from this 49.27appropriation may be used for the purposes 49.28provided under Laws 2010, chapter 189, 49.29section 19, subdivision 4, as amended by 49.30Laws 2010, chapter 399, section 8, and 49.31Laws 2011, First Special Session chapter 12, 49.32section 46.50.1    Sec. 43. Laws 2008, chapter 179, section 21, subdivision 15, as amended by Laws 50.22008, chapter 365, section 22, and Laws 2008, chapter 370, section 6, is amended to read:

50.350.4Subd. 15. St. Cloud State University - National Hockey Center; HEAPR6,500,000 

50.5To the Board of Trustees of the Minnesota 50.6State Colleges and Universities to predesign, 50.7design, construct, furnish, and equip the 50.8renovation of and addition to the National 50.9Hockey Center or for higher education asset 50.10preservation and replacement (HEAPR) 50.11pursuant to Minnesota Statutes, section 50.12135A.046, at St. Cloud State University or 50.13systemwide. The board may use university 50.14and nonstate money for the remainder of 50.15the cost of the construction of the National 50.16Hockey Center project. Notwithstanding 50.17Minnesota Statutes, section 16A.642, the 50.18bond authorization and appropriation of bond 50.19proceeds in this subdivision are available 50.20until June 30, 2016.50.21    Sec. 44. Laws 2009, chapter 93, article 1, section 12, subdivision 2, is amended to read:

50.2250.23Subd. 2.Transit Capital Improvement Program21,000,000

50.24(a) To the Metropolitan Council. $8,500,000 50.25is for the state's share of costs for the Central 50.26Corridor light rail line for one or more of the 50.27following activities: preliminary engineering, 50.28final design, property acquisition, including 50.29improvements and betterments of a capital 50.30nature, relocation of utilities owned by public 50.31entities, and construction.50.32(b) Any remaining money from this 50.33appropriation is to implement one or more of 50.34the following capital improvements, which 50.35are not listed in a ranked order of priority. 51.1The council shall determine project priorities 51.2after consultation with the Counties Transit 51.3Improvement Board, and other stakeholders, 51.4as appropriate. The council shall seek 51.5geographic balance in the allotment of this 51.6appropriation where possible and maximize 51.7the use of all available federal money from 51.8the American Recovery and Reinvestment 51.9Act of 2009, Public Law 111-5, and any 51.10other available federal money.

51.11(1) Bottineau Boulevard Transit Way

51.12For a grant to the Hennepin County Regional 51.13Railroad Authority for environmental work 51.14for Bottineau Transit Way corridor from the 51.15Hiawatha light rail and Northstar intermodal 51.16transit station in downtown Minneapolis to 51.17the vicinity of the Target development in 51.18northern Brooklyn Park or the Arbor Lakes 51.19retail area in Maple Grove.

51.20(2) Cedar Avenue Bus Rapid Transit

51.21To the Metropolitan Council or to the council 51.22for a grant to Dakota County, the Dakota 51.23County Regional Rail Railroad Authority, 51.24or the Minnesota Valley Transit Authority51.25to acquire real property and construct, for 51.26preliminary engineering, and to design 51.27and construct transit stations, layover 51.28and maintenance facilities, and roadway 51.29improvements for shoulder running bus lanes 51.30on County State-Aid Highway 23 in Apple 51.31Valley and Lakeville for the Cedar Avenue 51.32Bus Rapid Transit Way (BRT) in Dakota 51.33County.

51.34(3) I-94 Corridor Transit Way

52.1(i) For a grant to Washington County 52.2Regional Rail Authority for environmental 52.3work and preliminary engineering of 52.4transportation and transit improvements, 52.5including busways, park-and-rides, or rail 52.6transit, in the marked Interstate Highway 94 52.7corridor.52.8(ii) To acquire property and construct 52.9transportation and transit improvements, 52.10including busways, park-and-rides, or rail 52.11transit, in the marked Interstate Highway 94 52.12corridor.

52.13(4) Red Rock Corridor Transit Way

52.14To design, construct, and furnish 52.15park-and-ride lots for the Red Rock 52.16Corridor Transit Way between Hastings and 52.17Minneapolis via St. Paul, and any extension 52.18between Hastings and Red Wing.

52.19(5) Riverview Corridor Transit Way

52.20For a grant to the Ramsey County Regional 52.21Railroad Authority for environmental work 52.22and preliminary engineering for bus rapid 52.23transit in the Riverview corridor between the 52.24east side of St. Paul and the Minneapolis-St. 52.25Paul International Airport and the Mall of 52.26America.

52.27(6) Robert Street Corridor Transit Way

52.28To design and construct new passenger 52.29shelters and a bus layover facility, including 52.30rest rooms, break areas, and a passenger 52.31shelter, in the Robert Street Corridor Transit 52.32Way along or parallel to U.S. Highway 52.3352 and Robert Street from within the city 53.1of St. Paul to Dakota County Road 42 in 53.2Rosemount.

53.3(7) Rush Line Corridor Transit Way

53.4For a grant to the Ramsey County Regional 53.5Railroad Authority to acquire land for, 53.6design, and construct park-and-ride or 53.7park-and-pool lots located along the Rush 53.8Line Corridor along I-35E/I-35 and Highway 53.961 from the Union Depot in downtown St. 53.10Paul to Hinckley.

53.11(8) Southwest Corridor Transit Way

53.12To prepare an environmental impact 53.13statement (EIS) and for preliminary 53.14engineering for the Southwest Transit Way 53.15Corridor, from the Hiawatha light rail in 53.16downtown Minneapolis to the vicinity of the 53.17Southwest Station transit hub in Eden Prairie. 53.18The Metropolitan Council may grant a 53.19portion of this appropriation to the Hennepin 53.20County Regional Railroad Authority for the 53.21EIS work.

53.22(9) Union Depot

53.23For a grant to the Ramsey County Regional 53.24Railroad Authority to acquire land and 53.25structures, to renovate structures, and 53.26for design, engineering, and construction 53.27to revitalize Union Depot for use as a 53.28multimodal transit center in St. Paul. The 53.29center must be designed so that it facilitates a 53.30potential future connection of high-speed rail 53.31to Minneapolis.53.32(c) Of this amount, $313,000 is for 53.33preliminary engineering and final design for 53.34betterments in the State Capitol area related 54.1to the Central Corridor light rail transit 54.2project. This money is not included in the 54.3Central Corridor light rail transit project 54.4budget.54.5EFFECTIVE DATE.This section is effective retroactively from May 17, 2009.54.6    Sec. 45. Laws 2010, chapter 189, section 18, subdivision 5, is amended to read:

54.754.8Subd. 5.Minnesota Sex Offender Program Treatment Facilities - Moose Lake47,500,000

54.9To complete design for and to construct, 54.10furnish, and equip phase 2 of the Minnesota 54.11sex offender treatment program at Moose 54.12Lake. Upon substantial completion 54.13of this project, the unspent portion of 54.14this appropriation is available for asset 54.15preservation projects for the Moose Lake 54.16campus of the Minnesota sex offender 54.17program, including design and construction 54.18of a replacement water tower, abatement 54.19of hazardous materials, and the demolition 54.20of the existing water tower serving the 54.21Moose Lake sex offender program and the 54.22Department of Corrections Moose Lake 54.23facility. The water tower project must 54.24be cost-shared with the Department of 54.25Corrections.54.26    Sec. 46. Laws 2010, chapter 189, section 24, subdivision 3, is amended to read:

54.2754.28Subd. 3.County and Local Preservation Grants1,000,000

54.29To be allocated to county and local 54.30jurisdictions as matching money for historic 54.31preservation projects of a capital nature, 54.32as provided in Minnesota Statutes, section 54.33138.0525
         .55.1$150,000 is for a grant to the city of South St. 55.2Paul to renovate the historically significant 55.31941 Navy Hangar at 310 Airport Road at 55.4Fleming Field in the city to meet life safety 55.5and building code requirements, subject to 55.6Minnesota Statutes, section 16A.695. No 55.7local match is required for this grant.55.8    Sec. 47. Laws 2011, First Special Session chapter 12, section 3, subdivision 7, is 55.9amended to read:

55.10Subd. 7.Normandale Community College

55.1155.12Academic Partnership Center and Student Services21,984,000

55.13To design, construct, furnish, and equip a 55.14new building for classrooms and offices and 55.15to design, construct, furnish, and equip the 55.16renovation of the Student Services Building.55.17    Sec. 48. Laws 2011, First Special Session chapter 12, section 3, subdivision 8, is 55.18amended to read:

55.1955.20Subd. 8.NHED Mesabi Range Community and Technical College, Virginia

55.21Iron Range Engineering Program Facilities3,000,000

55.22To predesign, design, construct, furnish, 55.23and equip an addition to and renovation of 55.24existing space for the Iron Range engineering 55.25program, including laboratory spaces, other 55.26learning spaces, and improvements to the 55.27entrance, and to acquire a privately owned 55.28housing facility on the campus.55.29    Sec. 49. Laws 2011, First Special Session chapter 12, section 14, subdivision 2, 55.30is amended to read:

55.3155.32Subd. 2.Transit Capital Improvement Program20,000,000

56.1To the Metropolitan Council or for the 56.2Council to grant to Anoka County Regional 56.3Railroad Authority, Dakota County, Dakota 56.4County Regional Railroad Authority, 56.5Hennepin County, Hennepin County 56.6Regional Railroad Authority, Minnesota 56.7Valley Transit Authority, Ramsey County 56.8Regional Railroad Authority, or Washington 56.9County Regional Railroad Authority to 56.10perform environmental studies, preliminary 56.11engineering, acquire property or an interest 56.12in property, design or construct transitway 56.13facilities and infrastructure, including 56.14roadways, for the following transitway 56.15projects: Northstar Ramsey station, 56.16Gateway (I-94 East) corridor, Minneapolis 56.17Interchange facility, Red Rock corridor, 56.18Newport park-and-ride and station, Rush 56.19Line corridor, Robert Street corridor, 35W 56.20South Bus Rapid Transit, and Cedar Avenue 56.21Bus Rapid Transit.56.22    Sec. 50. Laws 2011, First Special Session chapter 12, section 19, is amended to read:

56.23Sec. 19. PUBLIC FACILITIES AUTHORITY$20,000,000

56.24Wastewater Infrastructure Funding Program

56.25To the Public Facilities Authority for 56.26grants to eligible municipalities under the 56.27wastewater infrastructure funding program 56.28under Minnesota Statutes, section 
         446A.072.56.29Notwithstanding the criteria and requirements 56.30of Minnesota Statutes, section 446A.072, 56.31up to $1,000,000 of this appropriation is for 56.32a grant to the city of Albert Lea to design, 56.33construct, and equip water and sewer utilities 56.34in the area of Broadway Avenue and Main 57.1Street. This project may include demolition 57.2of deteriorating concrete curbs, gutters, 57.3sidewalks, and streets above the utilities, 57.4and the construction costs to replace and 57.5rehabilitate the infrastructure.57.6    Sec. 51. Laws 2011, First Special Session chapter 12, section 22, is amended to read:57.7    Sec. 22. BOND SALE SCHEDULE.57.8The commissioner of management and budget shall schedule the sale of state 57.9general obligation bonds so that, during the biennium ending June 30, 2013, no more than 57.10$1,200,858,000 $1,088,452,000 will need to be transferred from the general fund to the 57.11state bond fund to pay principal and interest due and to become due on outstanding state 57.12general obligation bonds. Of the amount transferred, $452,708,000 is from the general 57.13fund and $635,745,000 is from the tobacco settlement bond proceeds fund. During 57.14the biennium, before each sale of state general obligation bonds, the commissioner of 57.15management and budget shall calculate the amount of debt service payments needed on 57.16bonds previously issued and shall estimate the amount of debt service payments that will 57.17be needed on the bonds scheduled to be sold. The commissioner shall adjust the amount 57.18of bonds scheduled to be sold so as to remain within the limit set by this section. The 57.19amount needed to make the debt service payments is appropriated from the general fund 57.20as provided in Minnesota Statutes, section 
         16A.641.57.21    Sec. 52. LAKE SUPERIOR-POPLAR RIVER WATER DISTRICT.57.22    Subdivision 1.Establishment.The Lake Superior-Poplar River Water District is 57.23created as a municipal corporation, having the powers provided under Minnesota Statutes, 57.24chapters 110A; 429, notwithstanding any provision of chapter 110A to the contrary; and 57.25444. Notwithstanding any law to the contrary, the district shall not have the power to issue 57.26general obligation bonds. Minnesota Statutes, sections 110A.04, 110A.07, and 110A.09 to 57.27110A.18, shall not apply to the district or to the board created by this act.57.28    Subd. 2.Definitions.For purposes of applying Minnesota Statutes, chapter 110A, 57.29to this act, "works" and "systems" shall include irrigation purposes, "court" is deemed to 57.30refer to the board of county commissioners; and "secretary of state" is deemed to refer to 57.31the county auditor.57.32    Subd. 3.Territory included in district.The territory of the district shall include 57.33all lands within Sections 20, 21, 28, 29, 32, and 33 of Township 60 North, Range 3 West 58.1of the Fourth Principal Meridian. Additional territory may be added as provided in 58.2Minnesota Statutes, sections 110A.19 to 110A.22.58.3    Subd. 4.Payment of costs.No person shall be obligated to purchase or be entitled 58.4to receive water from the district unless that person is a party to a contract to purchase 58.5water from the district. Excluding any initial capital investment funded by the state, all 58.6capital and operating expenses of the district shall be paid by the users in proportion to 58.7their use of water. The cost of distribution lines: (1) departing from the main water pipe 58.8from Lake Superior to the domestic water treatment plant to any user; or (2) from the 58.9water treatment plant to any user, shall be paid for by the user of the water either at the 58.10time of installation or by user charges that allow the district to recoup the full cost of the 58.11distribution lines and the cost of financing. Subject to this subdivision and the availability 58.12of water under any applicable permit with a state or federal agency, any owner of land 58.13within the district may contract with the district for the purchase of water.58.14    Subd. 5.Board of directors; elections.(a) The district shall be governed by a 58.15board of directors which shall have not less than three nor more than 13 members. The 58.16district's initial directors shall be appointed by the Cook County Board of Commissioners, 58.17with one director representing the domestic water users to serve for three years; up to two 58.18directors representing the irrigation water users, one to serve for two years and one to 58.19serve for three years; and up to two directors representing the commercial, stock watering, 58.20and industrial users, one to serve for one year and one to serve for two years.58.21(b) The district's establishment shall take effect upon the Cook County Board of 58.22Commissioners' appointment of the initial directors. The initial directors shall meet for 58.23the purposes of organization within 30 days of their appointment. Thereafter, except 58.24as otherwise provided in this subdivision, directors shall be elected in accordance with 58.25Minnesota Statutes, section 110A.24, from election divisions comprised of domestic water 58.26users; irrigation water users, and commercial, stock watering, and industrial users. Each 58.27use classification shall be entitled to elect one director, plus one additional director if its 58.28expected water usage for the following fiscal year exceeds ten percent of total water 58.29usage. Each water user within each use classification shall be entitled to cast one vote for 58.30each one percent of expected water usage for the following fiscal year. A homeowner's 58.31association shall vote on behalf of its members if duly authorized by appropriate action by 58.32the association's members. Prior to each election, the board of directors shall determine 58.33the use classifications entitled to vote, the expected water use percentage of each user and 58.34of use classification for the following fiscal year, and the number of directors each such 58.35use classification is entitled to elect. The elections shall be conducted and supervised by 58.36the board of directors and ratified by the Cook County Board of Commissioners.59.1    Subd. 6.Termination of appropriation of water from Poplar River.59.2Notwithstanding any law to the contrary, 30 days after the works and systems to transport 59.3water from Lake Superior to Lutsen Mountains Corporation's snowmaking systems first 59.4become fully permitted and operational, the water district shall notify the commissioner of 59.5natural resources and all permits issued by the Department of Natural Resources to Lutsen 59.6Mountains Corporation to use or appropriate water from the Poplar River shall terminate. 59.7For the purposes of section 54, paragraph (b), the commissioner of natural resources shall 59.8notify the revisor of statutes in writing when the permits have been terminated.59.9EFFECTIVE DATE; LOCAL APPROVAL.This section is effective the day after 59.10the governing body of Cook County and its chief clerical officer comply with Minnesota 59.11Statutes, section 645.021, subdivisions 2 and 3.59.12    Sec. 53. ACQUISITIONS FOR CANISTEO PROJECT.59.13The commissioner of natural resources shall acquire, without undue delay, the land 59.14or interests in land that are needed to construct a conveyance system and other betterments 59.15to accommodate the water level and outflow of water level from the Canisteo mine pit. 59.16The commissioner may acquire the land or interests in land by eminent domain, including 59.17use of the possession procedures under Minnesota Statutes, section 117.042.59.18    Sec. 54.  REPEALER.59.19(a) Minnesota Rules, part 8895.0700, subpart 1, is repealed.59.20(b)  Laws 2011, chapter 107, section 101, is repealed effective the day the permits 59.21have been terminated under section 52, subdivision 6. The commissioner of natural 59.22resources shall notify the revisor of statutes in writing when the permits have been 59.23terminated.59.24    Sec. 55. EFFECTIVE DATE.59.25Except as otherwise provided, this act is effective the day following final enactment.