1.1A bill for an act1.2relating to capital investment; authorizing spending to acquire and better public 1.3land and buildings and other improvements of a capital nature with certain 1.4conditions;amending Minnesota Statutes 2012, section 16B.24, subdivision 5.1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

1.7The sums shown in the column under "Appropriations" are appropriated from the 1.8bond proceeds fund, or another named fund, to the state agencies or officials indicated, 1.9to be spent for public purposes. Appropriations of bond proceeds must be spent as 1.10authorized by the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire 1.11and better public land and buildings and other public improvements of a capital nature or 1.12as authorized by the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), 1.13or article XIV. Unless otherwise specified, money appropriated in this act for a capital 1.14program or project may be used to pay state agency staff costs that are attributed directly 1.15to the capital program or project in accordance with accounting policies adopted by the 1.16commissioner of management and budget. Unless otherwise specified, the appropriations 1.17in this act are available until the project is completed or abandoned subject to Minnesota 1.18Statutes, section 16A.642.

1.19SUMMARY1.20Administration131,680,0001.21Bond Sale Expenses132,0001.22Cancellations; Reductions(2,000,000)1.23TOTAL$129,812,0001.24Bond Proceeds Fund (General Fund Debt Service)109,132,0002.1Bond Proceeds Fund (User Financed Debt Service)22,680,0002.2Bond Proceeds Cancellations(2,000,000)

2.3APPROPRIATIONS

2.4Sec. 2. ADMINISTRATION

2.5Subdivision 1.Total Appropriation131,680,000

2.6To the commissioner of administration for 2.7the purposes specified in this section.

2.8Subd. 2.Capitol Renovation and Restoration109,000,000

2.9This appropriation may be used for one or 2.10more of the following purposes:2.11(1) to complete the design of, and to 2.12construct, repair, improve, renovate, restore, 2.13furnish, and equip the State Capitol building 2.14and grounds; including but not limited 2.15to exterior stone repairs and window 2.16replacement; asbestos and hazardous 2.17materials abatement; mechanical, electrical, 2.18plumbing, and security systems replacement; 2.19general construction, including but not 2.20limited to demolition, site improvements, life 2.21safety improvements, accessibility, security 2.22and telecommunications; roof replacement; 2.23and finish work; and2.24(2) to predesign, design, conduct hazardous 2.25materials abatement, construct, repair, 2.26renovate, remodel, furnish, and equip 2.27the State Office Building, Administration 2.28Building, Centennial Office Building, 321 2.29Grove Street Building, and other buildings 2.30and parking facilities located on the Capitol 2.31campus as determined by the commissioner 2.32of administration to meet temporary and 2.33permanent office, storage, parking, and other 2.34space needs occasioned by and in furtherance 3.1of an efficient restoration of the State Capitol 3.2Building and for the efficient and effective 3.3function of the tenants currently located in 3.4the Capitol Building.3.5The commissioner must incorporate life 3.6safety (Tier 1), water management (Tier 2), 3.7and selective restoration of architectural 3.8features (Tier 3), as described in the 3.9Minnesota State Capitol Exterior Stone 3.10Repair Project report dated May 8, 2013, 3.11into repair work on the exterior stone 3.12of the Capitol that is funded under this 3.13appropriation.3.14The commissioner of administration must not 3.15construct or place any permanent building, 3.16structure, or facility for offices, parking, 3.17storage, or other use, in the area commonly 3.18known as Leif Erikson Park in the Capitol 3.19complex.

3.20Subd. 3.Tenant approval

3.21(a) The commissioner of administration must 3.22not prepare final plans and specifications 3.23for any construction authorized under 3.24subdivision 2 until the program plan and 3.25cost estimates for all elements necessary to 3.26complete the project have been approved by 3.27each tenant representative as to the space 3.28proposed for that tenant. The program 3.29plans and cost estimates must be presented 3.30to a tenant representative at least 30 days 3.31before the approval is needed from that 3.32representative. In addition, the appropriation 3.33in House File No. 677, article 12, section 3.3422, if enacted, is not available for relocation 3.35of a tenant until that tenant representative 4.1approves a relocation plan submitted by 4.2the commissioner of administration for that 4.3tenant at least ten days before approval 4.4is needed from that representative. The 4.5relocation plan shall:4.6(1) describe when each person who currently 4.7occupies office space located in the Capitol 4.8building will be moved out of the Capitol 4.9building;4.10(2) identify the building and office space 4.11assigned to each person relocated during 4.12renovation of the Capitol building;4.13(3) identify the parking spaces that will be 4.14assigned to each person relocated during 4.15renovation, including the funding mechanism 4.16for any new parking spaces;4.17(4) state when each person relocated 4.18during renovation will be moved back into 4.19permanent office space and where the office 4.20space will be located; and4.21(5) include a written, signed tenant agreement 4.22for tenancy in the Capitol building after 4.23renovation.4.24For the purposes of this paragraph, "tenant 4.25representative" includes the secretary of the 4.26senate, on behalf of the senate; the chief clerk 4.27of the house of representatives, on behalf of 4.28the house of representatives; the governor; 4.29the court administrator, on behalf of the 4.30judicial branch; and the attorney general, on 4.31behalf of the attorney general's office.4.32(b) The commissioner of administration 4.33must not install new windows in the Capitol 4.34building office spaces that cannot be opened 5.1by the tenants of the building, unless 5.2otherwise approved by a tenant occupying 5.3an office.5.4(c) The commissioner of administration shall 5.5consult and collaborate with the director 5.6of the Historical Society on plans and 5.7specifications for construction authorized 5.8under subdivision 2.

5.9Subd. 4.Parking Facilities22,680,000

5.10To design, construct, furnish, and equip 5.11one or more parking facilities in the 5.12Capitol complex to accommodate up to 5.13approximately 880 parking stalls, with a net 5.14replacement of approximately 675 parking 5.15stalls, including to address temporary parking 5.16needed during construction of permanent 5.17parking facilities. 5.18The parking facilities developed with 5.19this appropriation are exempt from the 5.20requirements for design competition under 5.21Minnesota Statutes, section 15B.10. 5.22Notwithstanding any law to the contrary, 5.23under Minnesota Statutes, sections 16C.32 5.24and 16C.33, if the commissioner elects to 5.25utilize a design-build delivery method to 5.26design and construct one or more parking 5.27facilities with this appropriation, the Capital 5.28Area Architectural and Planning Board, in 5.29cooperation with the commissioner, shall 5.30create a selection committee to act as the 5.31board under Minnesota Statutes, sections 5.3216C.32 and 16C.33. Notwithstanding 5.33Minnesota Statutes, section 16B.33, if the 5.34commissioner elects to contract with a 5.35primary designer to design one or more 6.1parking facilities with this appropriation, 6.2the Capital Area Architectural and Planning 6.3Board, in cooperation with the commissioner, 6.4shall create a selection committee to conduct 6.5the selection process in accordance with the 6.6standards in Minnesota Statutes, chapters 6.715B and 16B. Notwithstanding Minnesota 6.8Statutes, section 16C.33, subdivision 5, 6.9paragraph (b), after obtaining and evaluating 6.10qualifications from each design-builder, 6.11in accordance with the weighted criteria 6.12and subcriteria and procedures set forth in 6.13the request for qualifications, the selection 6.14committee shall select a short list of up to 6.15five proposals.6.16If the commissioner does not receive any 6.17proposals, the commissioner may either 6.18(1) solicit new proposals, (2) revise the 6.19request for qualifications and thereafter 6.20solicit new proposals using the revised 6.21request for qualifications, or (3) request 6.22selection of a primary designer pursuant to 6.23Minnesota Statutes, section 16B.33, 16C.08, 6.24or 16C.095, and proceed with competitive 6.25bidding pursuant to Minnesota Statutes, 6.26sections 16C.25 to 16C.29.6.27The bond debt will be user-financed from 6.28parking fees collected and deposited into 6.29the state parking account under Minnesota 6.30Statutes, section 16A.643.

6.31Sec. 3. BOND SALE EXPENSES$132,000

6.32To the commissioner of management 6.33and budget for bond sale expenses under 6.34Minnesota Statutes, section 16A.641, 6.35subdivision 8.7.1    Sec. 4. BOND SALE SCHEDULE.7.2The commissioner of management and budget shall schedule the sale of state 7.3general obligation bonds so that, during the biennium ending June 30, 2015, no more 7.4than $1,275,500,000 will need to be transferred from the general fund to the state bond 7.5fund to pay principal and interest due and to become due on outstanding state general 7.6obligation bonds. During the biennium, before each sale of state general obligation bonds, 7.7the commissioner of management and budget shall calculate the amount of debt service 7.8payments needed on bonds previously issued and shall estimate the amount of debt service 7.9payments that will be needed on the bonds scheduled to be sold. The commissioner shall 7.10adjust the amount of bonds scheduled to be sold so as to remain within the limit set by this 7.11section. The amount needed to make the debt service payments is appropriated from the 7.12general fund as provided in Minnesota  Statutes, section 16A.641.7.13    Sec. 5. BOND SALE AUTHORIZATION.7.14To provide the money appropriated in this act from the bond proceeds fund, the 7.15commissioner of management and budget shall sell and issue bonds of the state in an 7.16amount up to $131,812,000 in the manner, upon the terms, and with the effect prescribed 7.17by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, 7.18article XI, sections 4 to 7.7.19    Sec. 6. CANCELLATION; BOND SALE AUTHORIZATION REDUCTION.7.20The $2,000,000 appropriation in Laws 2009, chapter 93, article 1, section 11, 7.21subdivision 7, for the Alexandria aircraft surveillance facility, is canceled. The bond sale 7.22authorization in Laws 2009, chapter 93, article 1, section 21, subdivision 1, is reduced 7.23by $2,000,000.7.24    Sec. 7. Minnesota Statutes 2012, section 16B.24, subdivision 5, is amended to read:7.25    Subd. 5. Renting out state property. (a) Authority. The commissioner may rent 7.26out state property, real or personal, that is not needed for public use, if the rental is not 7.27otherwise provided for or prohibited by law. The property may not be rented out for 7.28more than five years at a time without the approval of the State Executive Council and 7.29may never be rented out for more than 25 years. A rental agreement may provide that 7.30the state will reimburse a tenant for a portion of capital improvements that the tenant 7.31makes to state real property if the state does not permit the tenant to renew the lease at 7.32the end of the rental agreement.8.1    (b) Restrictions. Paragraph (a) does not apply to state trust fund lands, other state 8.2lands under the jurisdiction of the Department of Natural Resources, lands forfeited for 8.3delinquent taxes, or lands acquired under section 
         298.22.8.4    (c) Rental of living accommodations. The commissioner shall establish rental rates 8.5for all living accommodations provided by the state for its employees. Money collected as 8.6rent by state agencies pursuant to this paragraph must be deposited in the state treasury 8.7and credited to the general fund.8.8    (d) Lease of space in certain state buildings to state agencies. The commissioner 8.9may lease portions of the state-owned buildings under the custodial control of the 8.10commissioner to state agencies and the court administrator on behalf of the judicial branch 8.11of state government and charge rent on the basis of space occupied. Notwithstanding any 8.12law to the contrary, all money collected as rent pursuant to the terms of this section shall 8.13be deposited in the state treasury. Money collected as rent to recover the bond interest 8.14costs of a building funded from the state bond proceeds fund shall be credited to the 8.15general fund. Money collected as rent to recover the depreciation costs of a building 8.16funded from the state bond proceeds fund and money collected as rent to recover capital 8.17expenditures from capital asset preservation and replacement appropriations and statewide 8.18building access appropriations shall be credited to a segregated asset preservation and 8.19replacement account in a special revenue fund. Fifty percent of the money credited to the 8.20account each fiscal year must be transferred to the general fund. The remaining money 8.21in the account is appropriated to the commissioner to be expended for asset preservation 8.22projects as determined by the commissioner. Money collected as rent to recover the 8.23depreciation and interest costs of a building built with other state dedicated funds shall 8.24be credited to the dedicated fund which funded the original acquisition or construction. 8.25All other money received shall be credited to the general services revolving fund. The 8.26commissioner shall not collect rent to recover bond interest costs or building depreciation 8.27costs for any appropriations utilized for the Capitol restoration project, between calendar 8.28years 2012 and 2017.8.29    (e) Lease of space in Andersen and Freeman buildings. The commissioner may 8.30lease space in the Elmer L. Andersen and Orville L. Freeman buildings to state agencies 8.31and charge rent on the basis of space occupied. Money collected as rent under this 8.32paragraph to fund future building repairs must be credited to a segregated account for each 8.33building in the special revenue fund and is appropriated to the commissioner to make 8.34the repairs. When the state acquires title to each building, the account for that building 8.35must be abolished and any balance remaining in the account must be transferred to the 8.36appropriate asset preservation and replacement account created under paragraph (d).9.1    Sec. 8. EFFECTIVE DATE.9.2This act is effective the day following final enactment.