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Office of the Revisor of Statutes

HF 1068

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 05/09/2014 11:27am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to capital investment; appropriating money for capital improvement
projects; modifying grant programs; authorizing the Housing Finance Agency
to issue housing infrastructure bonds; amending Minnesota Statutes 2012,
sections 12A.16, subdivision 5; 174.50, subdivisions 6b, 7; 174.52, subdivision
3; 462A.37, subdivision 2, by adding subdivisions.

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

Section 1. new text beginCAPITAL IMPROVEMENT APPROPRIATIONS.
new text end

new text begin The sums shown in the column under "Appropriations" are appropriated from the
general fund to the state agencies or officials indicated, to be spent for public purposes.
Unless otherwise specified, the appropriations in this act are available until the project is
completed or abandoned subject to Minnesota Statutes, section 16A.642.
new text end

new text begin SUMMARY
new text end
new text begin University of Minnesota
new text end
new text begin 30,000,000
new text end
new text begin Minnesota State Colleges and Universities
new text end
new text begin 30,650,000
new text end
new text begin Natural Resources
new text end
new text begin 11,900,000
new text end
new text begin Agriculture
new text end
new text begin 325,000
new text end
new text begin Public Safety
new text end
new text begin 225,000
new text end
new text begin Transportation
new text end
new text begin 74,250,000
new text end
new text begin Metropolitan Council
new text end
new text begin 2,518,000
new text end
new text begin Human Services
new text end
new text begin 46,512,000
new text end
new text begin Employment and Economic Development
new text end
new text begin 500,000
new text end
new text begin Minnesota Historical Society
new text end
new text begin 1,868,000
new text end
new text begin TOTAL
new text end
new text begin $
new text end
new text begin 198,748,000
new text end
new text begin APPROPRIATIONS
new text end

Sec. 2. new text beginUNIVERSITY OF MINNESOTA
new text end

new text begin $
new text end
new text begin 30,000,000
new text end

new text begin To the Board of Regents of the University
of Minnesota for Higher Education Asset
Preservation and Replacement (HEAPR),
to be spent in accordance with Minnesota
Statutes, section 135A.046.
new text end

Sec. 3. new text beginMINNESOTA STATE COLLEGES
AND UNIVERSITIES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 30,650,000
new text end

new text begin To the Board of Trustees of the Minnesota
State Colleges and Universities for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Higher Education Asset Preservation
and Replacement (HEAPR)
new text end

new text begin 30,000,000
new text end

new text begin To be spent in accordance with Minnesota
Statutes, section 135A.046.
new text end

new text begin Subd. 3. new text end

new text begin Alexandria Technical and Community
College
new text end

new text begin 650,000
new text end

new text begin For equipment maintenance and acquisition
for manufacturing programs at Alexandria
Technical and Community College, including
the machine tool and welding programs,
and any other appropriate programs as
determined by the college.
new text end

Sec. 4. new text beginNATURAL RESOURCES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 11,900,000
new text end

new text begin To the commissioner of natural resources for
the purposes specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Flood Hazard Mitigation
new text end

new text begin 9,900,000
new text end

new text begin (a) For the state share of flood hazard
mitigation grants for publicly owned capital
improvements to prevent or alleviate flood
damage under Minnesota Statutes, section
103F.161. Levee projects, to the extent
practical, shall meet the state standard of
three feet above the 100-year flood elevation.
Project priorities shall be determined by the
commissioner as appropriate and based on
need.
new text end

new text begin (b) This appropriation includes money for
the projects in Montevideo and Moorhead.
new text end

new text begin (c) For any project listed in this subdivision
that the commissioner determines is not
ready to proceed or does not expend all the
money allocated to it, the commissioner may
allocate that project's money to a project on
the commissioner's priority list.
new text end

new text begin (d) To the extent that the cost of a project
exceeds two percent of the median household
income in a municipality or township
multiplied by the number of households in the
municipality or township, this appropriation
is also for the local share of the project.
new text end

new text begin Subd. 3. new text end

new text begin Forestry Seed Processing Facilities
new text end

new text begin 2,000,000
new text end

new text begin To construct, furnish, and equip an expansion
to the cold storage and processing facilities
at Badoura Nursery to support consolidated
bareroot production; construct and equip
improved seed development, processing,
and storage facilities at Badoura Nursery;
construct, furnish, and equip greenhouse
and laboratory facilities at General Andrews
Nursery site to support expanded tree
improvement operations; and to upgrade
irrigation and artificial propagation bed
infrastructure at the General Andrews
Nursery site.
new text end

Sec. 5. new text beginAGRICULTURE
new text end

new text begin $
new text end
new text begin 325,000
new text end

new text begin To the commissioner of agriculture for a grant
to the Aitkin County Agricultural Society
to predesign, design, construct, furnish, and
equip a shared food service building that
can be separated into three smaller food
preparation areas. This appropriation does
not require a nonstate contribution.
new text end

Sec. 6. new text beginPUBLIC SAFETY
new text end

new text begin $
new text end
new text begin 225,000
new text end

new text begin To the commissioner of public safety for a
grant to the city of Cyrus to acquire land for
and to predesign, design, construct, furnish,
and equip a facility to accommodate the city
hall with community meeting space and the
fire department. This appropriation does not
require a nonstate contribution.
new text end

Sec. 7. new text beginTRANSPORTATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 74,250,000
new text end

new text begin To the commissioner of transportation for the
purposes specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Local Bridge Replacement and
Rehabilitation
new text end

new text begin 21,750,000
new text end

new text begin To match federal money and to replace
or rehabilitate local deficient bridges as
provided in Minnesota Statutes, section
174.50. To the extent practicable, the
commissioner shall expend the funds as
provided under Minnesota Statutes, section
174.50, subdivision 6a, 6b, or 6c.
new text end

new text begin $11,750,000 of this appropriation is for a
grant to Hennepin County to restore and
recondition the Franklin Avenue Bridge.
This appropriation is not available until the
commissioner of management and budget
determines that at least $16,500,000 is
committed to the project from nonstate
sources.
new text end

new text begin Subd. 3. new text end

new text begin Local Road Improvement Fund
Grants
new text end

new text begin 49,500,000
new text end

new text begin (a) For construction and reconstruction
of local roads with statewide or regional
significance under Minnesota Statutes,
section 174.52, subdivision 4, or for grants to
counties to assist in paying the costs of rural
road safety capital improvement projects on
county state-aid highways under Minnesota
Statutes, section 174.52, subdivision 4a.
new text end

new text begin (b) This appropriation includes funding for
the following projects:
new text end

new text begin (1) a grant to the city of Richfield for the
77th Street underpass project;
new text end

new text begin (2) a grant to Anoka County for the U.S.
Highway 10 and County State-Aid Highway
83 (Armstrong Boulevard) project;
new text end

new text begin (3) a grant to Ramsey County for the road
improvements related to the Twin Cities
Army Ammunition Plant redevelopment
project; and
new text end

new text begin (4) a grant for $250,000 to Pine Lake
Township in Otter Tail County for
improvements to Nitche Lake Road between
County Road 8 and County Road 53 in Pine
Lake Township.
new text end

new text begin (c) Of this appropriation, $11,448,000
is for materials and supplies related to
road repair resulting from effects of the
2013-2014 winter season. By September
1, 2014, the commissioner shall apportion
funds to counties in the same manner as
county state-aid highway funds provided
for calendar year 2014 under Minnesota
Statutes, section 162.07; and $3,552,000 is
for materials and supplies related to road
repair resulting from effects of the 2013-2014
winter season. By September 1, 2014, the
commissioner shall apportion funds to cities
in the same manner as municipal state-aid
street funds provided for calendar year 2014
under Minnesota Statutes, section 162.13.
new text end

new text begin Subd. 4. new text end

new text begin Safe Routes to School
new text end

new text begin 1,000,000
new text end

new text begin For grants under Minnesota Statutes, section
174.40.
new text end

new text begin Subd. 5. new text end

new text begin Port Development Assistance
new text end

new text begin 2,000,000
new text end

new text begin For grants under Minnesota Statutes, chapter
457A. Any improvements made with the
proceeds of these grants must be publicly
owned.
new text end

Sec. 8. new text beginMETROPOLITAN COUNCIL
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 2,518,000
new text end

new text begin To the Metropolitan Council for the purposes
specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Maplewood - Fish Creek Trail
new text end

new text begin 318,000
new text end

new text begin For a grant to the city of Maplewood to
acquire and develop approximately 70 acres
of land along Fish Creek to be included
within the Fish Creek Natural Greenway, a
park of regional and historical significance
located in Ramsey County within the
Mississippi National River and Recreation
Area. This appropriation is not available
until the commissioner of management and
budget determines that an amount sufficient
to complete the acquisition is committed to
the project from nonstate sources.
new text end

new text begin Subd. 3. new text end

new text begin I-35E Pedestrian Shared Use Walkway
new text end

new text begin 200,000
new text end

new text begin For a grant to the city of St. Paul to construct
a pedestrian shared use walkway on the
east side of I-35E from Arlington Avenue
to Cuyuga Street. This appropriation is
not available until the commissioner of
management and budget determines that at
least an equal amount has been committed to
the project from nonstate sources.
new text end

new text begin Subd. 4. new text end

new text begin West St. Paul - North Urban Regional
Trail Bridge
new text end

new text begin 2,000,000
new text end

new text begin For a grant to the city of West St. Paul to
predesign, design, and construct a pedestrian
bridge for the North Urban Regional Trail as
an overpass of Robert Street in the area near
Wentworth Avenue in West St. Paul. This
appropriation may also be used to acquire
property or purchase rights-of-way needed
for bridge construction. This appropriation
is not available until the commissioner of
management and budget has determined that
at least an equal amount has been committed
to the project from nonstate sources.
new text end

Sec. 9. new text beginHUMAN SERVICES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 46,512,000
new text end

new text begin To the commissioner of administration, or
another named agency, for the purposes
specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota Security Hospital - St.
Peter
new text end

new text begin 41,317,000
new text end

new text begin (a) To design and perform asbestos
and hazardous materials abatement and
demolition; to complete the design of, and to
construct, furnish, and equip the first phase of
a two-phase project to remodel existing, and
to develop new residential, program, activity,
and ancillary facilities for the Minnesota
Security Hospital on the upper campus of the
St. Peter Regional Treatment Center. This
appropriation includes funding to design the
second phase of the project. Upon substantial
completion of the first phase of this project,
any unspent portion of this appropriation is
available to design, perform asbestos and
hazardous materials abatement, perform
demolition, and to construct, renovate,
furnish, and equip the second phase.
new text end

new text begin (b) The commissioner of human services
shall promulgate rules to establish new
licensing requirements and a new licensing
category for maximum security units at the
Minnesota Security Hospital at St. Peter no
later than July 1, 2015.
new text end

new text begin Subd. 3. new text end

new text begin Early Childhood Learning and Child
Protection Facilities
new text end

new text begin 5,000,000
new text end

new text begin To the commissioner of human services for
grants under Minnesota Statutes, section
256E.37, to construct and rehabilitate early
childhood learning and child protection
facilities. Notwithstanding the limits on
grant amounts in Minnesota Statutes, section
256E.37, a grant from this appropriation
for an individual facility may be for up to
$1,000,000.
new text end

new text begin Notwithstanding the limitations on grant
amounts in Minnesota Statutes, section
256E.37, or this subdivision, $3,000,000 of
this appropriation is for a grant to Hennepin
County to predesign, design, renovate,
furnish, and equip the early childhood center
at the YWCA of Minneapolis. The grant to
Hennepin County is not available until the
commissioner of management and budget
determines that at least an equal amount has
been committed to the project from nonstate
sources.
new text end

new text begin Subd. 4. new text end

new text begin Advocating for Change Together
new text end

new text begin 195,000
new text end

new text begin For grave markers or memorial monuments
for the Remembering with Dignity Project as
administered by the organization Advocating
for Change Together for unmarked graves
on public land of deceased residents of state
hospitals or regional treatment centers.
new text end

Sec. 10. new text beginEMPLOYMENT AND ECONOMIC
DEVELOPMENT
new text end

new text begin $
new text end
new text begin 500,000
new text end

new text begin To the commissioner of employment and
economic development for Innovative
Business Development Public Infrastructure
Grants under Minnesota Statutes, section
116J.435.
new text end

Sec. 11. new text beginMINNESOTA HISTORICAL
SOCIETY
new text end

new text begin $
new text end
new text begin 1,868,000
new text end

new text begin To the Minnesota Historical Society to be
allocated to county and local jurisdictions
as matching money for historic preservation
projects of a capital nature, as provided in
Minnesota Statutes, section 138.0525.
new text end

Sec. 12.

Minnesota Statutes 2012, section 12A.16, subdivision 5, is amended to read:


Subd. 5.

Waivers authorized.

The requirements of section 174.50, subdivisions 5deleted text begin,
6, 6a, and
deleted text endnew text begin tonew text end 7, are waived for grants under subdivision 3.

Sec. 13.

Minnesota Statutes 2012, section 174.50, subdivision 6b, is amended to read:


Subd. 6b.

Bridge deleted text beginengineering and designdeleted text end costs in smaller cities.

deleted text beginUntil June 30,
2007,
deleted text endnew text begin (a)new text end The commissioner may make grants from the state transportation fund to a
home rule or statutory city with a population of 5,000 or less deleted text beginand a net tax capacity of
under $200,000
deleted text end for design deleted text beginand preliminarydeleted text endnew text begin,new text end engineeringnew text begin, and constructionnew text end of bridges
on city streets.

new text begin (b)new text end Grants under this subdivision are subject to the procedures and criteria
established under subdivisions 5 deleted text beginanddeleted text endnew text begin,new text end 6, andnew text begin 7.
new text end

new text begin (c) Grantsnew text end may be used fornew text begin:
new text end

new text begin (1)new text end 100 percent of the design and deleted text beginpreliminarydeleted text end engineering costsnew text begin that are in excess of
$10,000;
new text end

new text begin (2) 100 percent of the bridge approach work costs that are in excess of $10,000; and
new text end

new text begin (3) 100 percent of the bridge construction work costsnew text end.

deleted text begin Total grants under this subdivision to all cities may not exceed $200,000.
deleted text end

Sec. 14.

Minnesota Statutes 2012, section 174.50, subdivision 7, is amended to read:


Subd. 7.

Bridge grant program deleted text beginrequirementsdeleted text end; rulemaking.

(a) The commissioner
of transportation shall develop rules, procedures for application for grants, conditions of
grant administration, standards, and criterianew text begin as provided under subdivision 6new text end, including
bridge specifications, in cooperation with road authorities of political subdivisions, for use
in the administration of funds appropriated to the commissioner and for the administration
of grants to subdivisions.

(b) The maximum use of standardized bridges is encouraged. Regardless of the size
of the existing bridge, a bridge or replacement bridge is eligible for assistance from the
state transportation fund if a hydrological survey indicates that the bridge or replacement
bridge must be ten feet or more in length.

(c) As part of the standards or rules, the commissioner shall, in consultation with
local road authorities, establish a minimum distance between any two bridges that cross
over the same river, stream, or waterway, so that only one of the bridges is eligible for a
grant under this section. As appropriate, the commissioner may establish exceptions from
the minimum distance requirement or procedures for obtaining a variance.

(d) new text beginPolitical subdivisions may use grants made under this section to construct or
reconstruct bridges, including but not limited to:
new text end

new text begin (1) matching federal aid grants to construct or reconstruct key bridges;
new text end

new text begin (2) paying the costs to abandon an existing bridge that is deficient and in need of
replacement but where no replacement will be made; and
new text end

new text begin (3) paying the costs to construct a road or street to facilitate the abandonment of
an existing bridge if the commissioner determines that the bridge is deficient, and that
construction of the road or street is more economical than replacement of the existing
bridge.
new text end

new text begin (e) new text endFunds appropriated to the commissioner from the Minnesota state transportation
fund shall be segregated from the highway tax user distribution fund and other funds
created by article XIV of the Minnesota Constitution.

Sec. 15.

Minnesota Statutes 2012, section 174.52, subdivision 3, is amended to read:


Subd. 3.

Advisory committee.

(a) The commissioner shall establish deleted text beginandeleted text endnew text begin a local road
improvement program
new text end advisory committee consisting of five members, including:

(1) one county commissioner;

(2) one county engineer;

(3) one city engineer;

(4) one city council member or city administrator representing a city with a
population over 5,000; and

(5) one city council member or city administrator representing a city with a
population under 5,000.

new text begin (b)new text end The advisory committee shall provide recommendations to the commissioner
regarding expenditures from the deleted text begintrunk highway corridor projects accountdeleted text endnew text begin accounts
established in this section
new text end.

deleted text begin (b)deleted text endnew text begin (c)new text end Notwithstanding section 15.059, subdivision 5, the committee does not expire.

Sec. 16.

Minnesota Statutes 2012, section 462A.37, subdivision 2, is amended to read:


Subd. 2.

Authorization.

(a) The agency may issue up to $30,000,000 in aggregate
principal amount of housing infrastructure bonds in one or more series to which the
payment made under this section may be pledged. The housing infrastructure bonds
authorized in this subdivision may be issued to fund loans, on terms and conditions the
agency deems appropriate, made for one or more of the following purposes:

(1) to finance the costs of the construction, acquisition, and rehabilitation of
supportive housing for individuals and families who are without a permanent residence;

(2) to finance the costs of the acquisition and rehabilitation of foreclosed or
abandoned housing to be used for affordable rental housing and the costs of new
construction of rental housing on abandoned or foreclosed property where the existing
structures will be demolished or removed;

(3) to finance that portion of the costs of acquisition of deleted text beginabandoned or foreclosed
deleted text end property that is attributable to the land to be leased by community land trusts to low- and
moderate-income homebuyersnew text begin, and to the extent feasible, projects should help mitigate
racial disparities in homeownership rates and promote economic integration
new text end; and

(4) to finance the costs of acquisition and rehabilitation of federally assisted rental
housing and for the refinancing of costs of the construction, acquisition, and rehabilitation
of federally assisted rental housing, including providing funds to refund, in whole or in
part, outstanding bonds previously issued by the agency or another government unit to
finance or refinance such costs.

(b) Among comparable proposals for permanent supportive housing, preference
shall be given to permanent supportive housing for new text beginveterans and other new text endindividuals or
families who:

(1) either have been without a permanent residence for at least 12 months or at
least four times in the last three years; or

(2) are at significant risk of lacking a permanent residence for 12 months or at least
four times in the last three years.

new text begin (c) Among comparable proposals for acquisition of land to be leased by community
land trusts, the agency shall give preference to the acquisition of abandoned or foreclosed
property and the acquisition of property located in a foreclosure priority area identified by
the agency. Proposals for the acquisition of property that is not foreclosed or abandoned
or in a foreclosure priority area must include a rationale for not targeting foreclosed or
abandoned properties or properties in foreclosure priority areas.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
bonds authorized in 2014 and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2012, section 462A.37, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Additional authorization. new text end

new text begin In addition to the amount authorized in
subdivision 2, the agency may issue up to $80,000,000 of housing infrastructure bonds in
one or more series to which the payments made under this section may be pledged.
new text end

Sec. 18.

Minnesota Statutes 2012, section 462A.37, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Additional appropriation. new text end

new text begin (a) The agency must certify annually to the
commissioner of management and budget the actual amount of annual debt service on
each series of bonds issued under subdivision 2a.
new text end

new text begin (b) Each July 15, beginning in 2016 and through 2037, if any housing infrastructure
bonds issued under subdivision 2a remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under
section 462A.21, subdivision 32, the amount certified under paragraph (a), not to exceed
$6,400,000 annually. The amounts necessary to make the transfers are appropriated from
the general fund to the commissioner of management and budget.
new text end

new text begin (c) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.
new text end

Sec. 19. new text beginAPPROPRIATIONS GIVEN EFFECT ONCE.
new text end

new text begin If an appropriation in this act is enacted more than once in the 2014 legislative
session for the same purpose, the appropriation must be given effect only once. If the
appropriations for the same purpose are for different amounts, the lowest of the amounts is
the one to be given effect.
new text end

Sec. 20. new text beginEFFECTIVE DATE.
new text end

new text begin Except as otherwise provided, this act is effective the day following final enactment.
new text end