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HF 1

as introduced - 79th Legislature, 1995 1st Special Session (1995 - 1995) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act
  1.2             relating to capital improvements; authorizing spending 
  1.3             to acquire and better public land and buildings and 
  1.4             other public improvements of a capital nature with 
  1.5             certain conditions; authorizing sale of state bonds; 
  1.6             requiring periodic reports on the status of authorized 
  1.7             and outstanding state bonds; reducing 1995 
  1.8             appropriations; appropriating money; amending 
  1.9             Minnesota Statutes 1994, sections 16A.672, by adding 
  1.10            subdivisions; 16A.695, subdivisions 1, 2, 3, and by 
  1.11            adding a subdivision; 16B.24, by adding a subdivision; 
  1.12            16B.335, subdivisions 1, 2, and 5; 124.431, 
  1.13            subdivisions 2, 5, 6, 7, and 10; 124.494, subdivisions 
  1.14            2, 3, and 4; 136.62, subdivision 9, and by adding a 
  1.15            subdivision; 136A.28, subdivision 7; and 446A.12, 
  1.16            subdivision 1; Laws 1994, chapter 632, article 3, 
  1.17            section 12; Laws 1994, chapter 643, sections 2, 
  1.18            subdivision 15; 10, subdivision 10; 11, subdivisions 8 
  1.19            and 13; 19, subdivision 8; 21, subdivision 4; 23, 
  1.20            subdivisions 7 and 28; and 26, subdivisions 3 and 4; 
  1.21            proposing coding for new law in Minnesota Statutes, 
  1.22            chapter 16A; repealing Laws 1991, chapter 265, article 
  1.23            5, section 23, as amended. 
  1.25                             ARTICLE 1
  1.26                        CAPITAL IMPROVEMENTS
  1.28     The sums in the column under "APPROPRIATIONS" are 
  1.29  appropriated from the bond proceeds fund, or another named fund, 
  1.30  to the state agencies or officials indicated, to be spent to 
  1.31  acquire and to better public land and buildings and other public 
  1.32  improvements of a capital nature, as specified in this article. 
  1.33                          SUMMARY BY FUND
  1.34  ADMINISTRATION                                    $   2,065,000
  2.1   AGRICULTURE                                             103,000
  2.2   NATURAL RESOURCES                                     1,875,000
  2.3   POLLUTION CONTROL                                       750,000
  2.4   HUMAN SERVICES                                          148,000
  2.5   TRANSPORTATION                                        4,500,000
  2.6   EDUCATION                                            23,670,000
  2.8   AND UNIVERSITIES                                        750,000
  2.9   PUBLIC SAFETY                                           410,000
  2.10  BOND SALE EXPENSES                                       36,000
  2.11  TOTAL                                             $  34,307,000
  2.12  Bond Proceeds Fund                                    5,630,000
  2.13  Maximum Effort School 
  2.14  Loan Fund                                            23,670,000
  2.15  Transportation Fund                                   4,500,000
  2.16  General Fund                                            332,000
  2.17  Minnesota Environment and
  2.18  Natural Resources Trust Fund                            175,000
  2.19                                                   APPROPRIATIONS
  2.20  Sec. 2.  ADMINISTRATION                         
  2.21  Subdivision 1.  To the commissioner of
  2.22  administration for the purposes specified
  2.23  in this section                                    $  2,065,000
  2.24  Subd. 2. Predesign Revenue      
  2.25  Department Facility                                     350,000
  2.26  As part of the predesign of this 
  2.27  facility, the commissioner of 
  2.28  administration shall assume that, to 
  2.29  the extent feasible and cost-effective, 
  2.30  any new jobs created in the debt 
  2.31  collections entity will be located in a 
  2.32  county in greater Minnesota that had a 
  2.33  population loss of five percent or more 
  2.34  between the 1980 and 1990 census. 
  2.35  As part of the predesign process, the 
  2.36  commissioner must consider options that 
  2.37  do not require constructing a new 
  2.38  building, including acquisition of the 
  2.39  building currently housing the revenue 
  2.40  department or another existing building.
  2.41  Subd. 3.  Renovate Capitol Building                   1,715,000
  2.42  This appropriation is to predesign, 
  2.43  design, renovate, and equip the Capitol 
  2.44  building. 
  2.45  $184,000 is from the general fund for 
  2.46  furnishings, fixtures, equipment, and 
  2.47  relocation expenses. 
  3.1   The unencumbered balance from the 
  3.2   appropriation in Laws 1990, chapter 
  3.3   610, article 1, section 18, item (f), 
  3.4   to plan to remodel the Capitol, may be 
  3.5   used to design and construct this 
  3.6   project. 
  3.7   Sec. 3.  AGRICULTURE                                    103,000
  3.8   This appropriation is to the 
  3.9   commissioner of agriculture for 
  3.10  completion of a seed potato inspection 
  3.11  facility in East Grand Forks. 
  3.12  The debt service cost on bonds sold to 
  3.13  provide the money appropriated in this 
  3.14  section must be paid from potato 
  3.15  inspection fees charged and collected 
  3.16  by the commissioner of agriculture 
  3.17  under Minnesota Statutes, sections 
  3.18  21.115 and 27.07.  Inspection fees 
  3.19  established by the commissioner of 
  3.20  agriculture must include appropriate 
  3.21  charges for this debt service, which 
  3.22  are appropriated to the commissioner 
  3.23  for payment to the commissioner of 
  3.24  finance under Minnesota Statutes, 
  3.25  section 16A.643. 
  3.26  Sec. 4.  OFFICE OF    
  3.27  ENVIRONMENTAL ASSISTANCE                                      
  3.28  The appropriation of $3,000,000 in Laws 
  3.29  1994, chapter 643, section 24, 
  3.30  subdivision 4, for a solid waste 
  3.31  capital assistance program is 
  3.32  transferred from the commissioner of 
  3.33  the pollution control agency to the 
  3.34  director of the office of environmental 
  3.35  assistance. 
  3.36  Sec. 5.  NATURAL RESOURCES                                   
  3.37  Subdivision 1.  To the commissioner of 
  3.38  natural resources for the purposes 
  3.39  specified in this section                             1,875,000
  3.40  Subd. 2.  Cannon Valley Trail Repair                    175,000
  3.41  This appropriation is available July 1, 
  3.42  1995, from the Minnesota environment 
  3.43  and natural resources trust fund for 
  3.44  repair of erosion damage to the Cannon 
  3.45  Valley Trail in the vicinity of 
  3.46  milepost 80. 
  3.47  This appropriation is available only 
  3.48  when the commissioner has determined 
  3.49  that the Cannon Valley Trail joint 
  3.50  powers board has committed sufficient 
  3.51  additional money to complete the 
  3.52  project. 
  3.53  Subd. 3.  Eagle Creek Acquisition                     1,500,000
  3.54  This appropriation is to protect the 
  3.55  state-designated trout stream named 
  3.56  Eagle Creek by acquiring portions of 
  3.57  the creek and adjacent springs, seeps, 
  3.58  wetlands, and other lands necessary to 
  3.59  protect the creek.  
  4.1   The lands and waters to be acquired are 
  4.2   located in Scott county in the city of 
  4.3   Savage and described as follows:  the 
  4.4   southernmost portion of the property 
  4.5   commonly known as the Marshall/McCune 
  4.6   property from the historic residence to 
  4.7   the southern boundary of the 
  4.8   Marshall/McCune property between 
  4.9   Highway 13 South and the east branch of 
  4.10  Eagle Creek; the approximately 15 acres 
  4.11  adjacent to and immediately surrounding 
  4.12  the headwaters of the east branch of 
  4.13  Eagle Creek on the northwest portion of 
  4.14  the property commonly known as the 
  4.15  Buesing property; the approximately 
  4.16  five acre Town and Country campground 
  4.17  at 12630 Boone Avenue adjacent to the 
  4.18  west branch of Eagle Creek; and the 
  4.19  property commonly known as the Strom 
  4.20  property through which Eagle Creek 
  4.21  traverses, which is located south of 
  4.22  Highway 101 between Steiner Industrial 
  4.23  Development and the Steiner Industrial 
  4.24  Development First Addition.  The land 
  4.25  to be acquired may include other 
  4.26  critical lands needed to protect the 
  4.27  creek, such as contiguous wetlands, 
  4.28  steep slopes, rare plant communities, 
  4.29  and habitat for endangered or 
  4.30  threatened species.  This appropriation 
  4.31  may not be used to acquire an option to 
  4.32  purchase land. 
  4.33  The acquired lands and waters must be 
  4.34  established by the commissioner of 
  4.35  natural resources as an aquatic 
  4.36  management area under Minnesota 
  4.37  Statutes, section 86A.05, subdivision 
  4.38  14.  
  4.39  The city of Savage shall prohibit 
  4.40  development of any lands and waters 
  4.41  within a corridor 200 feet wide along 
  4.42  each side of the creek, including both 
  4.43  the east branch and the west branch, 
  4.44  and shall limit the use of the land 
  4.45  within the corridor to uses that will 
  4.46  protect the natural environment of the 
  4.47  creek and enhance its value as a trout 
  4.48  stream.  Notwithstanding Minnesota 
  4.49  Statutes, section 18B.02, within the 
  4.50  watershed of Eagle Creek, except for 
  4.51  lands zoned agricultural, the city of 
  4.52  Savage shall impose restrictions on the 
  4.53  application of agricultural chemicals, 
  4.54  as defined in Minnesota Statutes, 
  4.55  section 18D.01, subdivision 3, that 
  4.56  would have an adverse impact on the 
  4.57  quality of water in the creek as a 
  4.58  habitat for trout. 
  4.59  The city of Savage and the commissioner 
  4.60  of natural resources shall enter into a 
  4.61  joint review process with respect to 
  4.62  the east branch of Eagle Creek to 
  4.63  evaluate strategies to protect the east 
  4.64  branch and to mitigate adverse impacts 
  4.65  to the creek associated with 
  4.66  development adjacent to the east 
  4.67  branch.  The city shall consult with 
  4.68  the commissioner as part of this joint 
  5.1   process and shall consider the 
  5.2   commissioner's comments, but the 
  5.3   commissioner shall not have permit or 
  5.4   approval authority not otherwise 
  5.5   provided by law with respect to any 
  5.6   proposed development adjacent to the 
  5.7   east branch. 
  5.8   Subd. 4.  Dam Safety                                    200,000
  5.9   This appropriation is for dam safety 
  5.10  projects under Minnesota Statutes, 
  5.11  section 103G.511. 
  5.12  Sec. 6.  POLLUTION CONTROL                              750,000
  5.13  AGENCY
  5.14  This appropriation is to the 
  5.15  commissioner of the pollution control 
  5.16  agency for combined sewer overflow 
  5.17  grants to the city of Red Wing under 
  5.18  Minnesota Statutes, section 116.162, 
  5.19  for projects to be begun in fiscal year 
  5.20  1996.  The total amount of grants under 
  5.21  this section must not exceed one-half 
  5.22  of the capital costs of the city of Red 
  5.23  Wing to abate combined sewer overflow. 
  5.24  Sec. 7.  HUMAN SERVICES                                 148,000
  5.25  This appropriation is from the general 
  5.26  fund to the commissioner of human 
  5.27  services to demolish building No. 30 at 
  5.28  the Moose Lake Regional Treatment 
  5.29  Center.  The commissioner shall seek 
  5.30  reimbursement through the federal 
  5.31  Health Care Finance Agency based on 
  5.32  Medicare principles of reimbursements.  
  5.33  Notwithstanding Laws 1995, chapter 226, 
  5.34  article 1, section 11, subdivision 4, 
  5.35  the appropriation of $80,000 in that 
  5.36  law for the same purpose is transferred 
  5.37  to the commissioner of human services 
  5.38  and added to this appropriation, and 
  5.39  the federal money received by the 
  5.40  commissioner of human services must be 
  5.41  retained by the commissioner of human 
  5.42  services, not transferred to the 
  5.43  commissioner of corrections. 
  5.44  Sec. 8.  TRANSPORTATION                               4,500,000
  5.45  This appropriation is from the 
  5.46  Minnesota state transportation fund for 
  5.47  grants to political subdivisions for 
  5.48  the construction and reconstruction of 
  5.49  key bridges on the state transportation 
  5.50  system. 
  5.51  Political subdivisions may use grants 
  5.52  made under this section for purposes of 
  5.53  construction and reconstruction of 
  5.54  bridges, including: 
  5.55  (1) matching federal-aid grants for the 
  5.56  construction or reconstruction of key 
  5.57  bridges; 
  5.58  (2) paying the costs of abandoning an 
  5.59  existing bridge that is deficient and 
  6.1   in need of replacement, but where no 
  6.2   replacement will be made; 
  6.3   (3) paying the costs of constructing a 
  6.4   road or street that would facilitate 
  6.5   the abandonment of an existing bridge 
  6.6   determined by the commissioner to be 
  6.7   deficient, if the commissioner 
  6.8   determines that construction of the 
  6.9   road or street is more cost efficient 
  6.10  than replacement of the existing 
  6.11  bridge; and 
  6.12  (4) paying the costs of preliminary 
  6.13  engineering and environmental studies 
  6.14  authorized under Minnesota Statutes, 
  6.15  section 174.50, subdivision 6a. 
  6.16  Sec. 9.  EDUCATION                                  
  6.17  Subdivision 1.                                       23,670,000
  6.18  To the commissioner of education to 
  6.19  make capital loans to school districts 
  6.20  for which loans are approved in this 
  6.21  section as provided in Minnesota 
  6.22  Statutes, sections 124.36 to 124.46.  
  6.23  This appropriation is from the maximum 
  6.24  effort school loan fund.  
  6.25  Subd. 2.  Loan Approval 
  6.26  The commissioner shall make capital 
  6.27  loans to independent school district 
  6.28  No. 36, Kelliher; independent school 
  6.29  district No. 362, Littlefork-Big Falls; 
  6.30  and independent school district No. 
  6.31  727, Big Lake.  Capital loans to these 
  6.32  districts are approved. 
  6.33  Notwithstanding provisions to the 
  6.34  contrary in Minnesota Statutes, section 
  6.35  124.431, subdivisions 1 and 11, the 
  6.36  proceeds of the capital loan to 
  6.37  independent school district No. 727, 
  6.38  Big Lake, may be used to pay the 
  6.39  district for costs associated with the 
  6.40  construction of a school facility, 
  6.41  whether or not construction of the 
  6.42  project has been entered into or 
  6.43  completed and without regard to the 
  6.44  requirement that the contract for 
  6.45  construction be entered into within 18 
  6.46  months after the capital loan is 
  6.47  granted. 
  6.48  Subd. 3.  Commissioner Review
  6.49  The commissioner of education shall 
  6.50  review the proposed plan and budget of 
  6.51  the projects approved in this section 
  6.52  and may reduce the amount of a loan to 
  6.53  ensure that a project will be 
  6.54  economical.  The commissioner may 
  6.55  recover the cost incurred by the 
  6.56  commissioner for any professional 
  6.57  services associated with the final 
  6.58  review by reducing the proceeds of the 
  6.59  loan paid to a district. 
  6.60  Sec. 10.  MINNESOTA  
  7.1   STATE COLLEGES AND UNIVERSITIES                         750,000
  7.2   This appropriation is to the board of 
  7.3   trustees of the Minnesota state 
  7.4   colleges and universities to acquire 
  7.5   land in the vicinity of Metropolitan 
  7.6   State University. 
  7.7   The state board for community colleges 
  7.8   or the board of trustees of the 
  7.9   Minnesota state colleges and 
  7.10  universities may acquire land in the 
  7.11  vicinity of Normandale Community 
  7.12  College for parking facilities. 
  7.13  During the biennium, Mankato State 
  7.14  University may spend up to $15,000 of 
  7.15  nonstate money for construction of a 
  7.16  storage building for its manufacturing 
  7.17  engineering technology department, to 
  7.18  be located on property owned by the 
  7.19  university. 
  7.20  Sec. 11.  PUBLIC SAFETY                                 410,000
  7.21  This appropriation is for a grant to 
  7.22  the city of Parkers Prairie to assist 
  7.23  with the design and construction of a 
  7.24  fire hall and city hall to replace 
  7.25  those damaged by a propane explosion in 
  7.26  April 1995. 
  7.27  Sec. 12.  BOND SALE EXPENSES                             36,000
  7.28  To the commissioner of finance for bond 
  7.29  sale expenses under Minnesota Statutes, 
  7.30  section 16A.641, subdivision 8. 
  7.31  Sec. 13.  BOND SALE SCHEDULE                                    
  7.32  The commissioner of finance shall 
  7.33  schedule the sale of state general 
  7.34  obligation bonds so that, during the 
  7.35  biennium ending June 30, 1997, no more 
  7.36  than $458,704,000 will need to be 
  7.37  transferred from the general fund to 
  7.38  the state bond fund to pay principal 
  7.39  and interest due and to become due on 
  7.40  outstanding state general obligation 
  7.41  bonds.  During the biennium, before 
  7.42  each sale of state general obligation 
  7.43  bonds, the commissioner of finance 
  7.44  shall calculate the amount of debt 
  7.45  service payments needed on bonds 
  7.46  previously issued and shall estimate 
  7.47  the amount of debt service payments 
  7.48  that will be needed on the bonds 
  7.49  scheduled to be sold, the commissioner 
  7.50  shall adjust the amount of bonds 
  7.51  scheduled to be sold so as to remain 
  7.52  within the limit set by this section.  
  7.53  The amount needed to make the debt 
  7.54  service payments is appropriated from 
  7.55  the general fund as provided in 
  7.56  Minnesota Statutes, section 16A.641. 
  7.57     Sec. 14.  [BOND SALE AUTHORIZATION.] 
  7.58     Subdivision 1.  [BOND PROCEEDS FUND.] To provide the money 
  7.59  appropriated in this article from the bond proceeds fund, the 
  8.1   commissioner of finance, on request of the governor, shall sell 
  8.2   and issue bonds of the state in an amount up to $5,630,000 in 
  8.3   the manner, upon the terms, and with the effect prescribed by 
  8.4   Minnesota Statutes, sections 16A.631 to 16A.675, and by the 
  8.5   Minnesota Constitution, article XI, sections 4 to 7. 
  8.6      Subd. 2.  [TRANSPORTATION FUND.] To provide the money 
  8.7   appropriated in this article from the state transportation fund, 
  8.8   the commissioner of finance, on request of the governor, shall 
  8.9   sell and issue general obligation bonds of the state in an 
  8.10  amount up to $4,500,000 in the manner, upon the terms, and with 
  8.11  the effect prescribed by Minnesota Statutes, sections 16A.631 to 
  8.12  16A.675, and by the Minnesota Constitution, article XI, sections 
  8.13  4 to 7.  The proceeds of the bonds, except accrued interest and 
  8.14  any premium received on the sale of the bonds, must be credited 
  8.15  to a bond proceeds account in the state transportation fund. 
  8.16     Subd. 3.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] To provide the 
  8.17  money appropriated by this article from the maximum effort 
  8.18  school loan fund, the commissioner of finance, on request of the 
  8.19  governor, shall sell and issue bonds of the state in an amount 
  8.20  up to $23,670,000 in the manner, on the terms, and with the 
  8.21  effect prescribed by Minnesota Statutes, sections 16A.631 to 
  8.22  16A.675, and by the Minnesota Constitution, article XI, sections 
  8.23  4 to 7.  The proceeds of the bonds, except accrued interest and 
  8.24  any premium received on the sale of the bonds, must be credited 
  8.25  to a bond proceeds account in the maximum effort school loan 
  8.26  fund. 
  8.28     The bond sale authorizations in the following laws are 
  8.29  reduced by the amounts indicated. 
  8.30     (1)  Laws 1987, chapter 400, section 25, subdivision 1, is 
  8.31  reduced by $50,000. 
  8.32     (2) Laws 1987, chapter 400, section 25, subdivision 3, is 
  8.33  reduced by $10,000. 
  8.34     (3) Laws 1989, chapter 41, section 3, is reduced by $54,000.
  8.35     (4) Laws 1989, chapter 300, article 1, section 23, 
  8.36  subdivision 1, is reduced by $65,000. 
  9.1      (5) Laws 1990, chapter 610, article 1, section 30, 
  9.2   subdivision 1, is reduced by $580,000. 
  9.3      (6) Laws 1991, chapter 265, article 12, section 1, is 
  9.4   reduced by $6,610,000.  The approval of a capital loan to 
  9.5   independent school district No. 345, New London-Spicer, in Laws 
  9.6   1991, chapter 265, article 12, section 2, is rescinded. 
  9.7      (7) Laws 1992, chapter 558, section 28, subdivision 1, is 
  9.8   reduced by $5,000. 
  9.9      (8) Laws 1994, chapter 643, section 31, subdivision 1, is 
  9.10  reduced by $1,245,000. 
  9.11     Sec. 16.  [16A.642] [STATE BONDS:  REPORTS; CANCELLATIONS.] 
  9.12     Subdivision 1.  [REPORTS.] The commissioner of finance 
  9.13  shall report to the chairs of the senate committee on finance 
  9.14  and the house of representatives committees on ways and means 
  9.15  and on capital investment by February 1 of each even-numbered 
  9.16  year on the following: 
  9.17     (1) all state building projects for which bonds have been 
  9.18  authorized and issued by a law enacted more than seven years 
  9.19  before February 1 of that even-numbered year and of which 20 
  9.20  percent or less of a project's authorization has been encumbered 
  9.21  or otherwise obligated for the purpose stated in the law 
  9.22  authorizing the issue; and 
  9.23     (2) all state bonds authorized and issued for purposes 
  9.24  other than building projects reported under clause (1), by a law 
  9.25  enacted more than seven years before February 1 of that 
  9.26  even-numbered year, and the amount of any balance that is 
  9.27  unencumbered or otherwise not obligated for the purpose stated 
  9.28  in the law authorizing the issue. 
  9.29     The commissioner shall also report on bond authorizations 
  9.30  or bond proceed balances that may be canceled because projects 
  9.31  have been canceled, completed, or otherwise concluded, or 
  9.32  because the purposes for which the bonds were authorized or 
  9.33  issued have been canceled, completed, or otherwise concluded.  
  9.34  The bond authorizations or bond proceed balances that are 
  9.35  unencumbered or otherwise not obligated that are reported by the 
  9.36  commissioner under this subdivision are canceled, effective July 
 10.1   1 of the year of the report, unless specifically reauthorized by 
 10.2   act of the legislature. 
 10.3      Subd. 2.  [CANCELLATION.] If the commissioner determines 
 10.4   that the purposes for which general obligation bonds of the 
 10.5   state have been issued are accomplished or abandoned, after 
 10.6   consultation with the affected agencies, and there is a 
 10.7   remaining authorization for a specific project of $500 or less, 
 10.8   the commissioner may cancel the remaining authorization for that 
 10.9   project.  The commissioner must notify the chairs of the senate 
 10.10  finance committee and the house capital investment committee of 
 10.11  any bond authorizations canceled under this subdivision. 
 10.12     Sec. 17.  Minnesota Statutes 1994, section 16A.672, is 
 10.13  amended by adding a subdivision to read: 
 10.14     Subd. 12.  [EXCHANGE LISTING.] The commissioner may provide 
 10.15  for listing of any bonds or certificates of indebtedness on an 
 10.16  exchange or similar arrangement to facilitate their sale and 
 10.17  exchange in the secondary market. 
 10.18     Sec. 18.  Minnesota Statutes 1994, section 16A.672, is 
 10.19  amended by adding a subdivision to read: 
 10.21  commissioner and any other officer of a state department or 
 10.22  state agency charged with the responsibility of issuing bonds 
 10.23  for or on behalf of the state department or agency, may enter 
 10.24  into written agreements or contracts relating to the continuing 
 10.25  disclosure of information necessary to comply with, or 
 10.26  facilitate the issuance of bonds in accordance with, federal 
 10.27  securities laws, rules, and regulations, including securities 
 10.28  and exchange commission rules and regulations, section 
 10.29  240.15c2-12.  An agreement may be in the form of covenants with 
 10.30  purchasers and holders of bonds set forth in the order or 
 10.31  resolution authorizing the issuance of the bonds, or a separate 
 10.32  document authorized by the order or resolution. 
 10.33     Sec. 19.  Minnesota Statutes 1994, section 16A.695, 
 10.34  subdivision 1, is amended to read: 
 10.35     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 10.36  subdivision apply to this section.  
 11.1      (b) "State bond financed property" means property acquired 
 11.2   or bettered in whole or in part with the proceeds of state 
 11.3   general obligation bonds authorized to be issued under article 
 11.4   XI, section 5, clause (a), of the Minnesota Constitution. 
 11.5      (c) "Public officer or agency" means a state officer or 
 11.6   agency, the University of Minnesota, the Minnesota historical 
 11.7   society, and any county, home rule charter or statutory city, 
 11.8   school district, special purpose district, or other public 
 11.9   entity, or any officer or employee thereof. 
 11.10     (d) "Fair market value" means, with respect to the sale of 
 11.11  state bond financed property, the price that would be paid by a 
 11.12  willing and qualified buyer to a willing and qualified seller as 
 11.13  determined by an appraisal of the property, or the price bid by 
 11.14  a purchaser under a public bid procedure after reasonable public 
 11.15  notice. 
 11.16     (e) "Outstanding state bonds" means the dollar amount 
 11.17  certified by the commissioner, upon the request of a public 
 11.18  officer or agency, to be the principal amount of state bonds, 
 11.19  including any refunding bonds, issued with respect to the state 
 11.20  bond financed property, less the principal amount of state bonds 
 11.21  paid or defeased before the date of the request. 
 11.22     Sec. 20.  Minnesota Statutes 1994, section 16A.695, 
 11.23  subdivision 2, is amended to read: 
 11.24     Subd. 2.  [LEASES AND MANAGEMENT CONTRACTS.] (a) A public 
 11.25  officer or agency that is authorized by law to lease or enter 
 11.26  into a management contract with respect to state bond financed 
 11.27  property shall comply with this subdivision. 
 11.28     (b) The lease or management contract may be entered into 
 11.29  for the express purpose of carrying out a governmental program 
 11.30  established or authorized by law and established by official 
 11.31  action of the contracting public officer or agency, in 
 11.32  accordance with orders of the commissioner intended to ensure 
 11.33  the legality and tax-exempt status of bonds issued to finance 
 11.34  the property, and with the approval of the commissioner.  A 
 11.35  lease or management contract, including any renewals that are 
 11.36  solely at the option of the lessee, must be for a term 
 12.1   substantially less than the useful life of the property, but may 
 12.2   allow renewal beyond that term upon a determination by the 
 12.3   lessor that the use continues to carry out the governmental 
 12.4   program.  A lease or management contract must be terminable by 
 12.5   the contracting public officer or agency if the other 
 12.6   contracting party defaults under the contract or if the 
 12.7   governmental program is terminated or changed, and must provide 
 12.8   for program oversight by the contracting public officer or 
 12.9   agency.  Money received by the public officer or agency under 
 12.10  the lease or management contract that is not needed to pay and 
 12.11  not authorized to be used to pay operating costs of the 
 12.12  property, or to pay the principal, interest, redemption 
 12.13  premiums, and other expenses when due on debt related to the 
 12.14  property other than state bonds, must be: 
 12.15     (1) paid to the commissioner in the same proportion as the 
 12.16  state bond financing is to the total public debt financing for 
 12.17  the property, excluding debt issued by a unit of government for 
 12.18  which it has no financial liability; 
 12.19     (2) deposited in the state bond fund,; and 
 12.20     (3) used to pay or redeem or defease bonds issued to 
 12.21  finance the property in accordance with the commissioner's order 
 12.22  authorizing their issuance;.  
 12.23     The money paid to the commissioner is appropriated for this 
 12.24  purpose. 
 12.25     (c) With the approval of the commissioner, a lease or 
 12.26  management contract between a city and a nonprofit corporation 
 12.27  under section 471.191, subdivision 1, need not require the 
 12.28  lessee to pay rentals sufficient to pay the principal, interest, 
 12.29  redemption premiums, and other expenses when due with respect to 
 12.30  state bonds issued to acquire and better the facilities. 
 12.31     Sec. 21.  Minnesota Statutes 1994, section 16A.695, 
 12.32  subdivision 3, is amended to read: 
 12.33     Subd. 3.  [SALE OF PROPERTY.] A public officer or agency 
 12.34  shall not sell any state bond financed property unless the 
 12.35  public officer or agency determines by official action that the 
 12.36  property is no longer usable or needed by the public officer or 
 13.1   agency to carry out the governmental program for which it was 
 13.2   acquired or constructed, the sale is made as authorized by law, 
 13.3   the sale is made for fair market value, and the sale is approved 
 13.4   by the commissioner.  If any state bonds issued to purchase or 
 13.5   better the state bond financed property that is sold remain 
 13.6   outstanding on the date of sale, the net proceeds of sale must 
 13.7   be applied as follows: 
 13.8      (1) if the state bond financed property was acquired and 
 13.9   bettered solely with state bond proceeds, the net proceeds of 
 13.10  sale must be paid to the commissioner, deposited in the state 
 13.11  bond fund, and used to pay or redeem or defease the outstanding 
 13.12  state bonds in accordance with the commissioner's order 
 13.13  authorizing their issuance, and the proceeds are appropriated 
 13.14  for this purpose; or 
 13.15     (2) if the state bond financed property was acquired or 
 13.16  bettered partly with state bond proceeds and partly with other 
 13.17  money, the net proceeds of sale must first be used:  first, to 
 13.18  pay or redeem or defease the state bonds as provided in clause 
 13.19  (1), and to the state the amount of state bond proceeds used to 
 13.20  acquire or better the property; second, to pay in full any 
 13.21  outstanding public or private debt incurred to acquire or better 
 13.22  the property; and third, any excess over the amount needed 
 13.23  for that purpose those purposes must be divided in proportion to 
 13.24  the shares contributed to its the acquisition or betterment of 
 13.25  the property and paid to the interested public and private 
 13.26  entities, other than any private lender already paid in full, 
 13.27  and the proceeds are appropriated for this purpose. 
 13.28     When all of the net proceeds of sale have been applied as 
 13.29  provided in this subdivision, this section no longer applies to 
 13.30  the property. 
 13.31     Sec. 22.  Minnesota Statutes 1994, section 16A.695, is 
 13.32  amended by adding a subdivision to read: 
 13.33     Subd. 3a.  [INVOLUNTARY SALE OF PROPERTY.] Notwithstanding 
 13.34  subdivision 3, this subdivision applies to the sale of state 
 13.35  bond financed property by a lender that has provided money to 
 13.36  acquire or better the property.  Purchase by the lender in a 
 14.1   foreclosure sale, acceptance of a deed in lieu of foreclosure, 
 14.2   or enforcement of a security interest in personal property, by 
 14.3   the lender, is not a sale.  Following purchase by the lender, 
 14.4   the lender shall not operate the property in a manner 
 14.5   inconsistent with the governmental program established as 
 14.6   provided in subdivision 2, paragraph (b).  The lender shall 
 14.7   exercise its best efforts to sell the property to a third party 
 14.8   as soon as feasible following acquisition of marketable title to 
 14.9   the property by the lender.  A sale by the lender must be made 
 14.10  as authorized by law and must be made for fair market value.  
 14.11     Sec. 23.  Minnesota Statutes 1994, section 16B.24, is 
 14.12  amended by adding a subdivision to read: 
 14.13     Subd. 3a.  [SALE OF REAL PROPERTY.] By February 1 of each 
 14.14  year, the commissioner shall report to the chairs of the senate 
 14.15  committee on finance and the house of representatives committees 
 14.16  on ways and means and capital investment all sales or other 
 14.17  transfers of real property owned by the state that have taken 
 14.18  place in the preceding calendar year.  The report shall include 
 14.19  a description of the property, reason for the sale, the name of 
 14.20  the buyer, and the price for which the property was sold.  Sales 
 14.21  of easements need not be included.  This subdivision does not 
 14.22  apply to real property held by the department of natural 
 14.23  resources, the department of transportation, or the board of 
 14.24  water and soil resources, except for real property that has been 
 14.25  used for office space by any of those agencies.  This 
 14.26  subdivision does not apply to property owned by the board of 
 14.27  trustees of the Minnesota state colleges and universities or the 
 14.28  University of Minnesota.  
 14.29     Sec. 24.  Minnesota Statutes 1994, section 16B.335, 
 14.30  subdivision 1, is amended to read: 
 14.31     Subdivision 1.  [CONSTRUCTION AND MAJOR REMODELING.] The 
 14.32  commissioner, or any other recipient to whom an appropriation is 
 14.33  made to acquire or better public lands or buildings or other 
 14.34  public improvements of a capital nature, must not prepare final 
 14.35  plans and specifications for any construction, major remodeling, 
 14.36  or land acquisition in anticipation of which the appropriation 
 15.1   was made until the agency that will use the project has 
 15.2   presented the program plan and cost estimates for all elements 
 15.3   necessary to complete the project to the chair of the senate 
 15.4   finance committee and the chair of the house ways and means 
 15.5   committee and the chairs have made their recommendations, and 
 15.6   the chair of the house capital investment committee is 
 15.7   notified.  "Construction or major remodeling" means construction 
 15.8   of a new building or substantial alteration of the exterior 
 15.9   dimensions or interior configuration of an existing building.  
 15.10  The presentation must note any significant changes in the work 
 15.11  that will be done, or in its cost, since the appropriation for 
 15.12  the project was enacted.  The program plans and estimates must 
 15.13  be presented for review at least two weeks before a 
 15.14  recommendation is needed.  The recommendations are advisory 
 15.15  only.  Failure or refusal to make a recommendation is considered 
 15.16  a negative recommendation.  The chairs of the senate finance 
 15.17  committee, the house capital investment committee, and the house 
 15.18  ways and means committee must also be notified whenever there is 
 15.19  a substantial change in a construction or major remodeling 
 15.20  project, or in its cost. 
 15.21     Sec. 25.  Minnesota Statutes 1994, section 16B.335, 
 15.22  subdivision 2, is amended to read: 
 15.23     Subd. 2.  [OTHER PROJECTS.] All other capital projects for 
 15.24  which a specific appropriation is made must not proceed until 
 15.25  the recipient undertaking the project has notified the chair of 
 15.26  the senate finance committee, the chair of the house capital 
 15.27  investment committee, and the chair of the house ways and means 
 15.28  committee that the work is ready to begin.  Notice is not 
 15.29  required for capital projects needed to comply with the 
 15.30  Americans with Disabilities Act or funded by an agency's 
 15.31  operating budget or by a capital asset preservation and 
 15.32  replacement account under section 16A.632, or a higher education 
 15.33  capital asset preservation and renewal account under section 
 15.34  135A.046. 
 15.35     Sec. 26.  Minnesota Statutes 1994, section 16B.335, 
 15.36  subdivision 5, is amended to read: 
 16.1      Subd. 5.  [INFORMATION TECHNOLOGY.] Agency requests for 
 16.2   construction and remodeling funds shall include money for 
 16.3   cost-effective information technology investments that would 
 16.4   enable an agency to reduce its need for office space, provide 
 16.5   more of its services electronically, and decentralize its 
 16.6   operations.  The information policy office must review and 
 16.7   approve the information technology portion of construction and 
 16.8   major remodeling program plans before the plans are submitted to 
 16.9   the chairs of the senate finance committee and the house of 
 16.10  representatives ways and means committee for their 
 16.11  recommendations and the chair of the house of representatives 
 16.12  capital investment committee is notified as required by 
 16.13  subdivision 1. 
 16.14     Sec. 27.  Minnesota Statutes 1994, section 124.431, 
 16.15  subdivision 2, is amended to read: 
 16.17  school district or a joint powers district that intends to apply 
 16.18  for a capital loan must submit a proposal to the commissioner 
 16.19  for review and comment according to section 121.15 on or before 
 16.20  July 1 of an odd-numbered year.  The commissioner must prepare a 
 16.21  review and comment on the proposed facility, regardless of the 
 16.22  amount of the capital expenditure required to construct the 
 16.23  facility.  In addition to the information provided under section 
 16.24  121.15, subdivision 7, the commissioner shall consider the 
 16.25  following criteria in determining whether to make a positive 
 16.26  review and comment.  
 16.27     (a) To grant a positive review and comment the commissioner 
 16.28  must determine that all of the following conditions are met: 
 16.29     (1) the facilities are needed for pupils for whom no 
 16.30  adequate facilities exist or will exist; 
 16.31     (2) the district will serve, on average, at least 80 pupils 
 16.32  per grade or is eligible for sparsity revenue; 
 16.33     (3) no form of cooperation with another district would 
 16.34  provide the necessary facilities; 
 16.35     (4) the facilities are comparable in size and quality to 
 16.36  facilities recently constructed in other districts that have 
 17.1   similar enrollments; 
 17.2      (5) the facilities are comparable in size and quality to 
 17.3   facilities recently constructed in other districts that are 
 17.4   financed without a capital loan; 
 17.5      (6) the district is projected to maintain or increase its 
 17.6   average daily membership over the next five years or is eligible 
 17.7   for sparsity revenue; 
 17.8      (7) the current facility poses a threat to the life, 
 17.9   health, and safety of pupils, and cannot reasonably be brought 
 17.10  into compliance with fire, health, or life safety codes; 
 17.11     (8) the district has made a good faith effort, as evidenced 
 17.12  by its maintenance expenditures, to adequately maintain the 
 17.13  existing facility during the previous ten years and to comply 
 17.14  with fire, health, and life safety codes and state and federal 
 17.15  requirements for handicapped accessibility; 
 17.16     (9) the district has made a good faith effort to encourage 
 17.17  integration of social service programs within the new facility; 
 17.18  and 
 17.19     (10) evaluations by school boards of adjacent districts 
 17.20  have been received. 
 17.21     (b) The commissioner may grant a negative review and 
 17.22  comment if: 
 17.23     (1) the state demographer has examined the population of 
 17.24  the communities to be served by the facility and determined that 
 17.25  the communities have not grown during the previous five years; 
 17.26     (2) the state demographer determines that the economic and 
 17.27  population bases of the communities to be served by the facility 
 17.28  are not likely to grow or to remain at a level sufficient, 
 17.29  during the next ten years, to ensure use of the entire facility; 
 17.30     (3) the need for facilities could be met within the 
 17.31  district or adjacent districts at a comparable cost by leasing, 
 17.32  repairing, remodeling, or sharing existing facilities or by 
 17.33  using temporary facilities; 
 17.34     (4) the district plans do not include cooperation and 
 17.35  collaboration with health and human services agencies and other 
 17.36  political subdivisions; or 
 18.1      (5) if the application is for new construction, an existing 
 18.2   facility that would meet the district's needs could be purchased 
 18.3   at a comparable cost from any other source within the area. 
 18.4      Sec. 28.  Minnesota Statutes 1994, section 124.431, 
 18.5   subdivision 5, is amended to read: 
 18.7   school board of a district desiring a capital loan shall adopt a 
 18.8   resolution stating the amount proposed to be borrowed, the 
 18.9   purpose for which the debt is to be incurred, and an estimate of 
 18.10  the dates when the facilities for which the loan is requested 
 18.11  will be contracted for and completed.  Applications for loans 
 18.12  must be accompanied by a copy of the adopted board resolution 
 18.13  and copies of the adjacent district evaluations.  The evaluation 
 18.14  shall be retained by the commissioner as part of a permanent 
 18.15  record of the district submitting the evaluation. 
 18.16     Applications must be in the form and accompanied by the 
 18.17  additional data required by the commissioner.  Applications must 
 18.18  be received by the commissioner by November September 1 of an 
 18.19  odd-numbered year.  A district must resubmit an application each 
 18.20  odd-numbered year.  Capital loan applications that do not 
 18.21  receive voter approval or are not approved in law cancel July 1 
 18.22  of the year following application.  When an application is 
 18.23  received, the commissioner shall obtain from the commissioner of 
 18.24  revenue the information in the revenue department's official 
 18.25  records that is required to be used in computing the debt limit 
 18.26  of the district under section 475.53, subdivision 4. 
 18.27     Sec. 29.  Minnesota Statutes 1994, section 124.431, 
 18.28  subdivision 6, is amended to read: 
 18.30  January November 1 of each odd-numbered year, the state board 
 18.31  must review all applications for capital loans that have 
 18.32  received a positive review and comment.  When reviewing 
 18.33  applications, the state board shall consider whether the 
 18.34  criteria in subdivision 2 have been met.  The state board may 
 18.35  not approve an application if all of the required deadlines have 
 18.36  not been met.  The state board may either approve or reject an 
 19.1   application for a capital loan. 
 19.2      Sec. 30.  Minnesota Statutes 1994, section 124.431, 
 19.3   subdivision 7, is amended to read: 
 19.5   commissioner shall examine and consider applications for capital 
 19.6   loans that have been approved by the state board of education, 
 19.7   and promptly notify any district rejected by the state board of 
 19.8   the state board's decision.  
 19.9      The commissioner shall report each capital loan that has 
 19.10  been approved by the state board and that has received voter 
 19.11  approval to the education committees of the legislature by 
 19.12  February January 1 of each even-numbered year.  The commissioner 
 19.13  must not report a capital loan that has not received voter 
 19.14  approval.  The commissioner shall also report on the money 
 19.15  remaining in the capital loan account and, if necessary, request 
 19.16  that another bond issue be authorized. 
 19.17     Sec. 31.  Minnesota Statutes 1994, section 124.431, 
 19.18  subdivision 10, is amended to read: 
 19.19     Subd. 10.  [DISTRICT REFERENDUM.] After receipt of the 
 19.20  review and comment on the project and before February January 1 
 19.21  of the even-numbered year, the question authorizing the 
 19.22  borrowing of money for the facilities must be submitted by the 
 19.23  school board to the voters of the district at a regular or 
 19.24  special election.  The question submitted must state the total 
 19.25  amount to be borrowed from all sources.  Approval of a majority 
 19.26  of those voting on the question is sufficient to authorize the 
 19.27  issuance of the obligations on public sale in accordance with 
 19.28  chapter 475.  The face of the ballot must include the following 
 19.32  DEPENDENT ON AVAILABLE FUNDING."  The district shall mail to the 
 19.33  commissioner of education a certificate by the clerk showing the 
 19.34  vote at the election. 
 19.35     Sec. 32.  Minnesota Statutes 1994, section 124.494, 
 19.36  subdivision 2, is amended to read: 
 20.1      Subd. 2.  [REVIEW BY COMMISSIONER.] (a) Any group of 
 20.2   districts that submits an application for a grant shall submit a 
 20.3   proposal to the commissioner for review and comment under 
 20.4   section 121.15, and the commissioner shall prepare a review and 
 20.5   comment on the proposed facility by July 1 of an odd-numbered 
 20.6   year, regardless of the amount of the capital expenditure 
 20.7   required to acquire, construct, remodel or improve the secondary 
 20.8   facility.  The commissioner must not approve an application for 
 20.9   an incentive grant for any secondary facility unless the 
 20.10  facility receives a favorable review and comment under section 
 20.11  121.15 and the following criteria are met: 
 20.12     (1) a minimum of two or more districts, with kindergarten 
 20.13  to grade 12 enrollments in each district of no more than 1,200 
 20.14  pupils, enter into a joint powers agreement; 
 20.15     (2) a joint powers board representing all participating 
 20.16  districts is established under section 471.59 to govern the 
 20.17  cooperative secondary facility; 
 20.18     (3) the planned secondary facility will result in the joint 
 20.19  powers district meeting the requirements of Minnesota Rules, 
 20.20  parts 3500.2010 and 3500.2110; 
 20.21     (4) at least 198 pupils would be served in grades 10 to 12, 
 20.22  264 pupils would be served in grades 9 to 12, or 396 pupils 
 20.23  would be served in grades 7 to 12; 
 20.24     (5) no more than one superintendent is employed by the 
 20.25  joint powers board as a result of the cooperative secondary 
 20.26  facility agreement; 
 20.27     (6) a statement of need is submitted, that may include 
 20.28  reasons why the current secondary facilities are inadequate, 
 20.29  unsafe or inaccessible to the handicapped; 
 20.30     (7) an educational plan is prepared, that includes input 
 20.31  from both community and professional staff; 
 20.32     (8) a combined seniority list for all participating 
 20.33  districts is developed by the joint powers board; 
 20.34     (9) an education program is developed that provides for 
 20.35  more learning opportunities and course offerings, including the 
 20.36  offering of advanced placement courses, for students than is 
 21.1   currently available in any single member district; 
 21.2      (10) a plan is developed for providing instruction of any 
 21.3   resident students in other districts when distance to the 
 21.4   secondary education facility makes attendance at the facility 
 21.5   unreasonably difficult or impractical; and 
 21.6      (11) the joint powers board established under clause (2) 
 21.7   discusses with technical colleges located in the area how 
 21.8   vocational education space in the cooperative secondary facility 
 21.9   could be jointly used for secondary and post-secondary purposes. 
 21.10     (b) To the extent possible, the joint powers board is 
 21.11  encouraged to provide for severance pay or for early retirement 
 21.12  incentives under section 125.611, for any teacher or 
 21.13  administrator, as defined under section 125.12, subdivision 1, 
 21.14  who is placed on unrequested leave as a result of the 
 21.15  cooperative secondary facility agreement. 
 21.16     (c) For the purpose of paragraph (a), clause (8), each 
 21.17  school district must be considered to have started school each 
 21.18  year on the same date. 
 21.19     (d) The districts may develop a plan that provides for the 
 21.20  location of social service, health, and other programs serving 
 21.21  pupils and community residents within the cooperative secondary 
 21.22  facility.  The commissioner shall consider this plan when 
 21.23  preparing a review and comment on the proposed facility. 
 21.24     (e) The districts shall schedule and conduct a meeting on 
 21.25  library services.  The school districts, in cooperation with the 
 21.26  regional public library system and its appropriate member 
 21.27  libraries, shall discuss the possibility of including jointly 
 21.28  operated library services at the cooperative secondary facility. 
 21.29     (f) The school board of a district that has reorganized 
 21.30  under section 122.23 or 122.243 and that is applying for a grant 
 21.31  for remodeling or improving an existing facility may act in the 
 21.32  place of a joint powers board to meet the criteria of this 
 21.33  subdivision. 
 21.34     Sec. 33.  Minnesota Statutes 1994, section 124.494, 
 21.35  subdivision 3, is amended to read: 
 21.36     Subd. 3.  [DISTRICT PROCEDURES.] A joint powers board of a 
 22.1   secondary district established under subdivision 2 or a school 
 22.2   board of a reorganized district that intends to apply for a 
 22.3   grant shall adopt a resolution stating the proposed costs of the 
 22.4   project, the purpose for which the costs are to be incurred, and 
 22.5   an estimate of the dates when the facilities for which the grant 
 22.6   is requested will be contracted for and completed.  Applications 
 22.7   for the state grants must be accompanied by (a) a copy of the 
 22.8   resolution, (b) a certificate by the clerk and treasurer of the 
 22.9   joint powers board showing the current outstanding indebtedness 
 22.10  of each member district, and (c) a certificate by the county 
 22.11  auditor of each county in which a portion of the joint powers 
 22.12  district lies showing the information in the auditor's official 
 22.13  records that is required to be used in computing the debt limit 
 22.14  of the district under section 475.53, subdivision 4.  The 
 22.15  clerk's and treasurer's certificate shall show, as to each 
 22.16  outstanding bond issue of each member district, the amount 
 22.17  originally issued, the purpose for which issued, the date of 
 22.18  issue, the amount remaining unpaid as of the date of the 
 22.19  resolution, and the interest rates and due dates and amounts of 
 22.20  principal thereon.  Applications and necessary data must be in 
 22.21  the form prescribed by the commissioner and the rules of the 
 22.22  state board of education.  Applications must be received by the 
 22.23  commissioner by September 1 of an odd-numbered year.  When an 
 22.24  application is received, the commissioner shall obtain from the 
 22.25  commissioner of revenue, and from the public utilities 
 22.26  commission when required, the information in their official 
 22.27  records that is required to be used in computing the debt limit 
 22.28  of the joint powers district under section 475.53, subdivision 4.
 22.29     Sec. 34.  Minnesota Statutes 1994, section 124.494, 
 22.30  subdivision 4, is amended to read: 
 22.31     Subd. 4.  [AWARD OF GRANTS.] By November 1 of the 
 22.32  odd-numbered year, the commissioner shall examine and consider 
 22.33  all applications for grants, and if any district is found not 
 22.34  qualified, the commissioner shall promptly notify that board.  
 22.35     A grant award is subject to verification by the district as 
 22.36  specified in subdivision 6.  A grant award for a new facility 
 23.1   must not be made until the site of the secondary facility has 
 23.2   been determined.  A grant award to remodel or improve an 
 23.3   existing facility must not be made until the districts have 
 23.4   reorganized.  If the total amount of the approved applications 
 23.5   exceeds the amount that is or can be made available, the 
 23.6   commissioner shall allot the available amount equally between 
 23.7   the approved applicant districts.  The commissioner shall 
 23.8   promptly certify to each qualified district the amount, if any, 
 23.9   of the grant awarded to it. 
 23.10     Sec. 35.  Minnesota Statutes 1994, section 136.62, 
 23.11  subdivision 9, is amended to read: 
 23.12     Subd. 9.  [AUTHORIZATION TO SEEK FINANCING.] A community 
 23.13  college must not seek financing for child care facilities or 
 23.14  parking facilities through the higher education facilities 
 23.15  authority, as provided in section 136A.28, subdivision 3, 
 23.16  without the explicit authorization of the state board. 
 23.17     Sec. 36.  Minnesota Statutes 1994, section 136.62, is 
 23.18  amended by adding a subdivision to read: 
 23.19     Subd. 10.  [PARKING FACILITIES.] State appropriations for 
 23.20  repair or construction of parking facilities must not be used 
 23.21  for more than one-half of the repair or construction cost of a 
 23.22  parking facility at any community college campus.  The campus 
 23.23  must provide the remaining costs through user fees. 
 23.24     Sec. 37.  [PARKING FACILITIES REPORT.] 
 23.25     By January 1, 1996, the board of trustees of the Minnesota 
 23.26  state colleges and universities must develop and implement a 
 23.27  plan to finance all repair and construction costs for parking 
 23.28  facilities with user fees.  The plan must be reported to the 
 23.29  legislature by February 1, 1996. 
 23.30     Sec. 38.  Minnesota Statutes 1994, section 136A.28, 
 23.31  subdivision 7, is amended to read: 
 23.32     Subd. 7.  "Participating institution of higher education" 
 23.33  means an institution of higher education that, under the 
 23.34  provisions of sections 136A.25 to 136A.42, undertakes the 
 23.35  financing and construction or acquisition of a project or 
 23.36  undertakes the refunding or refinancing of obligations or of a 
 24.1   mortgage or of advances as provided in sections 136A.25 to 
 24.2   136A.42.  Community colleges and technical colleges may be 
 24.3   considered participating institutions of higher education for 
 24.4   the purpose of financing and constructing child care 
 24.5   facilities and parking facilities.  
 24.6      Sec. 39.  Minnesota Statutes 1994, section 446A.12, 
 24.7   subdivision 1, is amended to read: 
 24.8      Subdivision 1.  [BONDING AUTHORITY.] The authority may 
 24.9   issue negotiable bonds in a principal amount that the authority 
 24.10  determines necessary to provide sufficient funds for achieving 
 24.11  its purposes, including the making of loans and purchase of 
 24.12  securities, the payment of interest on bonds of the authority, 
 24.13  the establishment of reserves to secure its bonds, the payment 
 24.14  of fees to a third party providing credit enhancement, and the 
 24.15  payment of all other expenditures of the authority incident to 
 24.16  and necessary or convenient to carry out its corporate purposes 
 24.17  and powers, but not including the making of grants.  Bonds of 
 24.18  the authority may be issued as bonds or notes or in any other 
 24.19  form authorized by law.  The principal amount of bonds issued 
 24.20  and outstanding under this section at any time may not exceed 
 24.21  $350,000,000 $450,000,000, excluding bonds for which refunding 
 24.22  bonds or crossover refunding bonds have been issued. 
 24.23     Sec. 40.  Laws 1994, chapter 632, article 3, section 12, is 
 24.24  amended to read: 
 24.25  Sec. 12.  MILITARY AFFAIRS                              50,000
 24.26  This appropriation is to the adjutant 
 24.27  general for a grant to the Minnesota 
 24.28  National Guard youth camp to set up and 
 24.29  provide initial funding for a 
 24.30  foundation to run the camp.  The 
 24.31  appropriation must be is available only 
 24.32  as matched, dollar for dollar, by an 
 24.33  equal amount from nonstate sources. 
 24.34     Sec. 41.  Laws 1994, chapter 643, section 2, subdivision 
 24.35  15, is amended to read: 
 24.36  Subd. 15.  Science Museum of
 24.37  Minnesota                                             1,000,000 
 24.38  This appropriation is for a grant to 
 24.39  the city of St. Paul to plan for 
 24.40  predesign and design of a science 
 24.41  museum as authorized by section 81, 
 24.42  subject to new Minnesota Statutes, 
 25.1   section 16A.695. 
 25.2   This appropriation is not available 
 25.3   until the city of St. Paul has 
 25.4   delivered to the commissioner a 
 25.5   certified copy of a resolution of the 
 25.6   city of St. Paul requesting payment and 
 25.7   evidencing the commitment of the city 
 25.8   to make a city-owned riverfront site 
 25.9   available for the museum at no cost to 
 25.10  the nonprofit organization that will 
 25.11  operate the museum and the commissioner 
 25.12  has determined that the necessary 
 25.13  financing to complete the design of the 
 25.14  museum $2 has been committed by 
 25.15  nonstate sources for each $1 from this 
 25.16  appropriation. 
 25.17     Sec. 42.  Laws 1994, chapter 643, section 10, subdivision 
 25.18  10, is amended to read: 
 25.19  Subd. 10.  Rochester Technical College                 1,200,000
 25.20  This appropriation is to prepare 
 25.21  working drawings for predesign and 
 25.22  design an integrated campus in 
 25.23  accordance with this 
 25.24  subdivision.  $600,000 of this 
 25.25  appropriation is available immediately. 
 25.26  The remainder is available after a 
 25.27  master academic plan has been approved 
 25.28  under clause (3) and the technical 
 25.29  college has been sold. 
 25.30  (1) Rochester independent school 
 25.31  district No. 535 and The state board of 
 25.32  technical colleges trustees of the 
 25.33  Minnesota state colleges and 
 25.34  universities may enter into an 
 25.35  agreement for the sale of the Rochester 
 25.36  Technical College.  The sale is 
 25.37  contingent on state the approval of the 
 25.38  board of technical colleges approval 
 25.39  and passage of a referendum by the 
 25.40  voters in Rochester school district No. 
 25.41  535 trustees and a determination by the 
 25.42  board of trustees that the sale is 
 25.43  consistent with its priorities.  The 
 25.44  sale price shall equal the appraised 
 25.45  value if sold to independent school 
 25.46  district No. 535, Rochester, or, if 
 25.47  sold to any other party, the sale price 
 25.48  shall not be less than the appraised 
 25.49  value. 
 25.50  It is the intent of the legislature 
 25.51  that no technical college program 
 25.52  reduction, apart from normal program 
 25.53  review, shall occur as a result of this 
 25.54  sale. 
 25.55  (2) The sale shall not cause the 
 25.56  technical college to lease space or to 
 25.57  move to any temporary site. 
 25.58  (3) Prior to the preparation of design 
 25.59  documents, the post-secondary boards 
 25.60  and the relevant campus staff shall 
 25.61  jointly prepare a master academic plan 
 25.62  for an integrated campus for the 
 26.1   Rochester center facility.  The boards 
 26.2   shall consider the creation of a 
 26.3   polytechnic university.  Program review 
 26.4   by the higher education coordinating 
 26.5   board shall be done in accordance with 
 26.6   Minnesota Statutes, section 136A.04.  
 26.7   The plan shall be submitted to the 
 26.8   higher education board for approval by 
 26.9   December 1, 1994.  If approved, The 
 26.10  plan shall be submitted for review to 
 26.11  the higher education finance divisions 
 26.12  by January 15 16, 1995 1996, and must 
 26.13  be approved by the legislature before 
 26.14  the remaining $600,000 of the 
 26.15  appropriation is available.  The state 
 26.16  board of technical colleges, in 
 26.17  cooperation with the state board of 
 26.18  community colleges, shall not proceed 
 26.19  with working drawings until after 
 26.20  passage of the referendum and after the 
 26.21  master academic plan has been approved 
 26.22  by the higher education board.  
 26.23  (4) The proceeds from the sale of the 
 26.24  technical college to Rochester 
 26.25  independent school district No. 535, 
 26.26  are appropriated for the planning 
 26.27  design and construction necessary to 
 26.28  integrate technical college programs 
 26.29  into the Rochester center and to add or 
 26.30  modify space where necessary.  The new 
 26.31  technical college program space must be 
 26.32  attached to and must maximize the 
 26.33  current services, space, and programs 
 26.34  of the technical college, community 
 26.35  college, state university, and 
 26.36  University of Minnesota cooperative 
 26.37  campus.  The state board of technical 
 26.38  colleges trustees may not begin 
 26.39  construction of this project until the 
 26.40  legislature has approved the 
 26.41  construction plans. 
 26.42  (5) The state board of technical 
 26.43  colleges trustees shall develop a plan 
 26.44  to relocate to the Austin, Faribault, 
 26.45  and other Southeastern Minnesota 
 26.46  campuses all Rochester campus programs 
 26.47  that are not essential to the 
 26.48  integrated mission planned for the 
 26.49  Rochester center facility.  This plan 
 26.50  must be completed prior to preparing 
 26.51  design documents for the technical 
 26.52  college addition to the Rochester 
 26.53  center. 
 26.54  (6) The state board of technical 
 26.55  colleges trustees shall consider 
 26.56  relocating the horticulture technology 
 26.57  program from the Rochester campus to 
 26.58  the Austin campus of Riverland 
 26.59  technical college before the start of 
 26.60  the 1995-1996 academic year. 
 26.61     Sec. 43.  Laws 1994, chapter 643, section 11, subdivision 
 26.62  8, is amended to read: 
 26.63  Subd. 8.  Minneapolis Community College                 375,000 
 26.64  This appropriation is to prepare 
 27.1   working drawings design documents to 
 27.2   remodel and construct new space at the 
 27.3   campus for joint use with Minneapolis 
 27.4   Technical College.  The appropriation 
 27.5   is available only after an approved 
 27.6   master academic plan has been developed 
 27.7   for the campus.  The master academic 
 27.8   plan shall be developed jointly with 
 27.9   representation from each of the public 
 27.10  post-secondary systems campuses.  The 
 27.11  higher education board shall review the 
 27.12  plan.  The appropriation is available 
 27.13  if the higher education board approves 
 27.14  the plan. 
 27.15     Sec. 44.  Laws 1994, chapter 643, section 11, subdivision 
 27.16  13, is amended to read: 
 27.17  Subd. 13.  Vermilion Community College                  120,000
 27.18  This appropriation is to prepare 
 27.19  schematic plans to remodel and 
 27.20  construct space for labs, classrooms, 
 27.21  student services, campus 
 27.22  center, learning resource center, and 
 27.23  institutional services.  The 
 27.24  appropriation is available only after a 
 27.25  master academic plan has been developed 
 27.26  for the campus and approved by the 
 27.27  higher education board.  The master 
 27.28  academic plan shall be developed 
 27.29  jointly with representation from each 
 27.30  of the public post-secondary systems. 
 27.31     Sec. 45.  Laws 1994, chapter 643, section 19, subdivision 
 27.32  8, is amended to read: 
 27.33  Subd. 8.  Battle Point 
 27.34  Historic Site                                           350,000
 27.35  For construction design of the Battle 
 27.36  Point historic site, preliminary plans 
 27.37  for which were authorized in Laws 1990, 
 27.38  chapter 610, article 1, section 17, and 
 27.39  Laws 1992, chapter 558, section 24, 
 27.40  subdivision 5.  
 27.41  Notwithstanding Laws 1990, chapter 610, 
 27.42  article 1, section 17, the planned 
 27.43  educational center will be owned by 
 27.44  independent school district No. 115, 
 27.45  Cass Lake-Bena, and is subject to 
 27.46  Minnesota Statutes, section 16A.695.  
 27.47  The center must be constructed on land 
 27.48  leased to the school district by the 
 27.49  Leech Lake Band of Chippewa Indians 
 27.50  under a ground lease having an initial 
 27.51  term of at least 20 years and a total 
 27.52  term of at least 40 years, including 
 27.53  renewal options.  The school district 
 27.54  must contract with the Leech Lake Band 
 27.55  to operate the center on behalf of the 
 27.56  council.  The center and all classes 
 27.57  and programs run by or through the 
 27.58  center must be open to the public. 
 27.59     Sec. 46.  Laws 1994, chapter 643, section 21, subdivision 
 27.60  4, is amended to read: 
 28.1   Subd. 4.  Tourism and Exposition
 28.2   Centers                                               2,200,000
 28.3   For two grants to political 
 28.4   subdivisions for exhibition space for 
 28.5   tourism and exposition centers.  One 
 28.6   grant must be for $1,000,000 to the 
 28.7   southwest regional development 
 28.8   commission for the Prairieland Expo 
 28.9   facility to develop construction 
 28.10  planning documents for capital 
 28.11  improvements, and to acquire land for 
 28.12  the facility.  This grant is subject to 
 28.13  new Minnesota Statutes, section 
 28.14  16A.695.  It is the legislature's 
 28.15  expectation that the commission will 
 28.16  secure a grant from the department of 
 28.17  transportation's intermodal surface 
 28.18  transportation efficiency act funds.  
 28.19  The other grant must be for capital 
 28.20  improvements for a publicly owned 
 28.21  tourism and exposition center selected 
 28.22  by the commissioner and located in 
 28.23  northeastern Minnesota. 
 28.24     Sec. 47.  Laws 1994, chapter 643, section 23, subdivision 
 28.25  7, is amended to read: 
 28.26  Subd. 7.  Forestry Air 
 28.27  Tanker Facilities                                       368,000
 28.28  To replace temporary buildings, upgrade 
 28.29  equipment, and construct fuel and fire 
 28.30  retardant spill containment systems at 
 28.31  air tanker bases at Bemidji, Hibbing, 
 28.32  and Brainerd, and replace the temporary 
 28.33  building at Bemidji. 
 28.34  $183,000 of this appropriation is for 
 28.35  state funding of the Bemidji site and 
 28.36  is contingent upon commitment of 
 28.37  $200,000 in matching funds from the 
 28.38  United States Bureau of Indian Affairs. 
 28.39     Sec. 48.  Laws 1994, chapter 643, section 23, subdivision 
 28.40  28, is amended to read: 
 28.41  Subd. 28.  Environmental     
 28.42  Learning Centers                                     11,500,000 
 28.43  This appropriation is to the 
 28.44  commissioner of natural resources to 
 28.45  plan, design, and construct facilities 
 28.46  owned by political subdivisions at 
 28.47  residential environmental learning 
 28.48  centers as provided in this subdivision 
 28.49  and new Minnesota Statutes, section 
 28.50  84.0875. 
 28.51  The appropriations in items (a) through 
 28.52  (e) are available as follows:  (1) of 
 28.53  the $7,500,000 total, $5,000,000 is 
 28.54  available only when the commissioner 
 28.55  has determined that matching money in 
 28.56  the sum of $17,500,000 $12,500,000 has 
 28.57  been committed by nonstate sources; and 
 28.58  (2) the remaining $2,500,000 is 
 28.59  available to the extent that matching 
 28.60  money in the amount of $2 for each $1 
 29.1   of state money is committed by nonstate 
 29.2   sources, as determined by the 
 29.3   commissioner, provided that money may 
 29.4   not be spent under this sentence until 
 29.5   the amount available, including 
 29.6   matching money, is sufficient to 
 29.7   complete a functional improvement. 
 29.8   (a) Long Lake Conservation Center                     1,200,000
 29.9   This appropriation is for a grant to 
 29.10  Aitkin county. 
 29.11  (b) Deep Portage Conservation Reserve                 1,470,000
 29.12  This appropriation is for a grant to 
 29.13  Cass county. 
 29.14  (c) Wolf Ridge Environmental    
 29.15  Learning Center                                       2,100,000
 29.16  This appropriation is for a grant to 
 29.17  independent school district No. 381, 
 29.18  Lake Superior. 
 29.19  (d) Northwoods Audubon Center                         1,080,000
 29.20  This appropriation is for a grant to 
 29.21  independent school district No. 2580, 
 29.22  East Central. 
 29.23  (e) Forest Resource Center                            1,650,000
 29.24  This appropriation is for a grant to 
 29.25  independent school district No. 229, 
 29.26  Lanesboro. 
 29.27  If land and improvements in Fillmore 
 29.28  county that were conveyed by the state 
 29.29  to Southern Minnesota Forest Resource 
 29.30  Center under Laws 1990, chapter 452, 
 29.31  section 7, are pledged as security for 
 29.32  a loan to assist with the completion of 
 29.33  this project, the right of reverter 
 29.34  retained by the state is waived in 
 29.35  favor of the lender. 
 29.36  (f) Agassiz Environmental   
 29.37  Learning Center                                         300,000
 29.38  This appropriation is for a grant to 
 29.39  the city of Fertile. 
 29.40  (g) Laurentian Environmental
 29.41  Learning Center                                         450,000
 29.42  This appropriation is for a grant to 
 29.43  independent school district No. 621, 
 29.44  Mounds View. 
 29.45  (h) Prairie Woods           
 29.46  Environmental Learning Center                           250,000
 29.47  This appropriation is for a grant to 
 29.48  Kandiyohi county. 
 29.49  (i) Prairie Wetlands        
 29.50  Environmental Learning Center                         3,000,000
 29.51  This appropriation is for a grant to 
 29.52  the city of Fergus Falls. 
 30.1   Appropriations in this subdivision must 
 30.2   be used for qualified capital 
 30.3   expenditures. 
 30.4      Sec. 49.  Laws 1994, chapter 643, section 26, subdivision 
 30.5   3, is amended to read: 
 30.6   Subd. 3.  RIM Conservation Easement 
 30.7   Acquisition                                           9,000,000
 30.8   This appropriation is for the purposes 
 30.9   specified in paragraphs (a) to (c). 
 30.10  (a) To acquire conservation easements 
 30.11  from landowners on marginal lands to 
 30.12  protect soil and water quality and to 
 30.13  support fish and wildlife habitat as 
 30.14  provided in Minnesota Statutes, section 
 30.15  103F.515. 
 30.16  (b) To acquire perpetual conservation 
 30.17  easements on existing type 1, 2, and 3 
 30.18  wetlands, adjacent lands, and for the 
 30.19  establishment of permanent cover on 
 30.20  adjacent lands, in accordance with 
 30.21  Minnesota Statutes, section 103F.516.  
 30.22  (c) Up to $300,000 of this 
 30.23  appropriation may be used to establish 
 30.24  and restore wetlands to provide credits 
 30.25  for deposit in the state wetland bank 
 30.26  established under Minnesota Statutes, 
 30.27  section 103G.2242, subdivision 1.  The 
 30.28  board may enter into agreements with 
 30.29  local government units and the 
 30.30  commissioner of transportation for this 
 30.31  purpose.  An agreement with the 
 30.32  commissioner of transportation may 
 30.33  provide for borrowing or acquiring 
 30.34  existing wetland credits from the 
 30.35  wetland bank established by the 
 30.36  commissioner.  Proceeds from the sale 
 30.37  of credits provided under this 
 30.38  paragraph are appropriated to the board 
 30.39  for the purposes of paragraph 
 30.40  (b).  Sales of credits provided under 
 30.41  this paragraph need not be made for 
 30.42  fair market value when the sale is to a 
 30.43  public entity. 
 30.44     Sec. 50.  Laws 1994, chapter 643, section 26, subdivision 
 30.45  4, is amended to read: 
 30.46  Subd. 4.  Work Program
 30.47  The board of water and soil resources 
 30.48  must submit a work program and 
 30.49  semiannual progress reports in the form 
 30.50  determined by the legislative water 
 30.51  commission and request its 
 30.52  recommendation before spending any 
 30.53  money appropriated by subdivisions 4 2 
 30.54  and 5 3.  The commission's 
 30.55  recommendation is advisory only.  
 30.56  Failure to respond to a request within 
 30.57  60 days after receipt is a negative 
 30.58  recommendation.  Work programs 
 30.59  involving land acquisition must include 
 30.60  a land acquisition plan. 
 31.1      Sec. 51.  [MANKATO STATE.] 
 31.2      Mankato State University may sell to the city of Mankato 
 31.3   for fair market value approximately 2.66 acres of land in the 
 31.4   area of Warren Street, Stadium Road, and Hiniker Mill Road for 
 31.5   use as a detention basin.  The university may also grant the 
 31.6   city of Mankato a permanent utility easement in order to provide 
 31.7   the city access to the basin. 
 31.8      Sec. 52.  [REPEALER.] 
 31.9      Laws 1991, chapter 265, article 5, section 23, as amended 
 31.10  by Laws 1992, chapter 499, article 5, section 25, is repealed. 
 31.11     Sec. 53.  [EFFECTIVE DATE.] 
 31.12     This article is effective the day after its final 
 31.13  enactment; section 17 applies to state bonds and certificates of 
 31.14  indebtedness, regardless of whether they were issued on, before, 
 31.15  or after that date. 
 31.16                             ARTICLE 2 
 31.17                      APPROPRIATION REDUCTIONS 
 31.19     Subdivision 1.  [SUMMARY.] The amounts set forth in 
 31.20  parentheses in the column headed "APPROPRIATION REDUCTIONS" are 
 31.21  reductions from appropriations for the fiscal year ending June 
 31.22  30, 1995. 
 31.23                          SUMMARY BY FUND
 31.24                                                    APPROPRIATION
 31.25                                                     REDUCTIONS
 31.26  General Fund                                      $ (10,699,000)
 31.27  Subd. 2.  Legislative Coordinating
 31.28  Commission                                             (500,000)
 31.29  This reduction is taken from 
 31.30  appropriations made in Laws 1993, 
 31.31  chapter 192, Laws 1994, chapter 632, or 
 31.32  other law, and shall be allocated by 
 31.33  the legislative coordinating commission 
 31.34  among the senate, the house of 
 31.35  representatives, and the legislative 
 31.36  commissions. 
 31.37  Subd. 3.  Environment and 
 31.38  Natural Resources
 31.39  (a) Department of Agriculture                          (113,000)
 31.40  (b) Office of Environmental Assistance                  (50,000)
 31.41  (c) Pollution Control Agency                           (569,000)
 32.1   (d) Department of Natural Resources                    (802,000)
 32.2   Subd. 4.  Education                                 
 32.3   Department of Education                                (200,000)
 32.4   Subd. 5.  Health and Human Services
 32.5   (a) Department of Human Services                     (2,000,000)
 32.6   (b) Department of Health                               (250,000)
 32.7   Subd. 6.  Transportation 
 32.8   (a) Department of Transportation                        (70,000)
 32.9   (b) Department of Public Safety                        (128,000)
 32.10  Subd. 7.  Economic Development,
 32.11  Infrastructure, and Regulation 
 32.12  (a) Department of Commerce                             (503,000)
 32.13  (b) Department of Economic Security                     (78,000)
 32.14  (c) Department of Labor and Industry                   (139,000)
 32.15  (d) Department of Public Service                       (175,000)
 32.16  (e) Department of Trade and 
 32.17  Economic Development                                   (371,000)
 32.18  Subd. 8.  State Government
 32.19  (a) Department of Administration                       (200,000)
 32.20  (b) Department of Employee Relations                   (600,000)
 32.21  (c) Department of Finance                              (350,000)
 32.22  (d) Department of Human Rights                          (85,000)
 32.23  (e) Department of Military Affairs                     (292,000)
 32.24  (f) Department of Revenue                              (600,000)
 32.25  Subd. 9.  Judiciary Finance
 32.26  (a) Department of Corrections                        (2,510,000)
 32.27  (b) Department of Public Safety                        (114,000)
 32.28     Sec. 2.  [AGENCY DUTIES TO UNALLOT.] 
 32.29     Each agency of the executive branch shall unallot as 
 32.30  necessary to accomplish its reductions.  Each executive branch 
 32.31  agency shall provide a listing to the commissioner of finance, 
 32.32  the chair of the senate finance committee, and the chair of the 
 32.33  ways and means committee of the house of representatives by June 
 32.34  1, 1995, of the appropriation accounts to be reduced.  The 
 32.35  commissioner of finance shall effect these reductions by June 
 32.36  15, 1995.  
 32.37     Sec. 3.  [APPROPRIATION.] 
 33.1      $20,000 is appropriated from the general fund to the peace 
 33.2   officer standards and training board for the fiscal year ending 
 33.3   June 30, 1995.  This appropriation is added to the appropriation 
 33.4   in Laws 1993, chapter 146, article 2, section 2, to provide for 
 33.5   staffing and general operating costs of the board, including 
 33.6   legal fees.  
 33.7      Sec. 4.  [EFFECTIVE DATE.] 
 33.8      This article is effective the day following final enactment.