HF 983

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:43am

A bill for an act
relating to capital improvements; establishing natural resources asset preservation
and replacement; proposing coding for new law in Minnesota Statutes, chapter
84.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [84.946] NATURAL RESOURCES ASSET PRESERVATION AND
REPLACEMENT (NRAPR).
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin Article XI, section 5, clause (a), of the Minnesota
Constitution, requires that state general obligation bonds be issued to finance only the
acquisition or betterment of public land, buildings, and other public improvements of a
capital nature. Money appropriated for renovation, rehabilitation, and asset preservation
and replacement projects, whether from state bond proceeds or from other revenue, is
subject to the additional limitations provided in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Standards. new text end

new text begin (a) An appropriation for asset preservation may not be used
to acquire new land nor to acquire or construct new buildings, additions to buildings, or
major new improvements.
new text end

new text begin (b) An appropriation for asset preservation may be used only for a capital
expenditure on a capital asset previously owned by the state, within the meaning
of generally accepted accounting principles as applied to public expenditures. The
commissioner of natural resources will consult with the commissioner of finance to the
extent necessary to ensure this and will furnish the commissioner of finance a list of
projects to be financed from the account in order of their priority. The legislature assumes
that many projects for preservation and replacement of portions of existing capital assets
will constitute betterments and capital improvements within the meaning of the Minnesota
Constitution and capital expenditures under generally accepted accounting principles,
and will be financed more efficiently and economically under this section than by direct
appropriations for specific projects.
new text end

new text begin (c) Categories of projects considered likely to be most needed and appropriate for
asset preservation appropriations are the following:
new text end

new text begin (1) projects to remove life safety hazards, such as building code violations or
structural defects. Notwithstanding paragraph (a), a project in this category may include an
addition to an existing building if it is a required component of the hazard removal project;
new text end

new text begin (2) projects to eliminate or contain hazardous substances like asbestos or lead paint;
new text end

new text begin (3) major projects to replace or repair roofs, windows, tuckpointing, mechanical or
electrical systems, utility infrastructure, tunnels, site renovations necessary to support
building use, and structural components necessary to preserve the exterior and interior
of existing buildings; and
new text end

new text begin (4) projects to renovate parking structures.
new text end

new text begin (d) Up to ten percent of an appropriation subject to this section may be used for
design costs for projects eligible to be funded under this section in anticipation of future
asset preservation appropriations.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By January 15 of each year, the commissioner of natural resources
shall submit to the commissioner of finance, the chairs of the legislative committees
or divisions that currently oversee the appropriations to the agency, and to the chairs
of the senate and house of representatives committees with jurisdiction over capital
investment, a list of the projects that have been funded with money under this program
during the preceding calendar year, as well as a list of those priority asset preservation
projects for which state bond proceeds fund appropriations will be sought during that
year's legislative session.
new text end