HF 4404

as introduced - 90th Legislature (2017 - 2018) Posted on 04/12/2018 02:38pm

A bill for an act
relating to capital investment; authorizing spending to acquire and better public
land and buildings and other improvements of a capital nature with certain
conditions; modifying previous appropriations; establishing new programs and
modifying existing programs; authorizing the sale and issuance of state bonds;
appropriating money; amending Minnesota Statutes 2016, sections 16B.86; 16B.87,
subdivisions 1, 3; 363A.36, subdivisions 1, 4; 363A.44, subdivision 1; 462A.37,
subdivision 1, by adding a subdivision; Minnesota Statutes 2017 Supplement,
sections 222.49; 462A.37, subdivision 5; Laws 2009, chapter 93, article 1, section
14, subdivision 3, as amended; Laws 2014, chapter 294, article 1, section 5,
subdivision 3; Laws 2014, chapter 295, section 9; Laws 2017, First Special Session
chapter 8, article 1, sections 6, subdivision 6; 15, subdivisions 3, 11; 19, subdivision
3; 23, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters
137; 174.

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

ARTICLE 1

APPROPRIATIONS

Section 1. CAPITAL IMPROVEMENT APPROPRIATIONS.

The sums shown in the column under "Appropriations" are appropriated from the bond
proceeds fund, or another named fund, to the state agencies or officials indicated, to be
spent for public purposes. Appropriations of bond proceeds must be spent as authorized by
the Minnesota Constitution, article XI, section 5, paragraph (a), to acquire and better public
land and buildings and other public improvements of a capital nature, or as authorized by
the Minnesota Constitution, article XI, section 5, paragraphs (b) to (j), or article XIV. Unless
otherwise specified, money appropriated in this act:

(1) may be used to pay state agency staff costs that are attributed directly to the capital
program or project in accordance with accounting policies adopted by the commissioner of
management and budget;

(2) is available until the project is completed or abandoned subject to Minnesota Statutes,
section 16A.642;

(3) for activities under Minnesota Statutes, sections 16B.307, 84.946, and 135A.046,
should not be used for projects that can be financed within a reasonable time frame under
Minnesota Statutes, section 16B.322 or 16C.144; and

(4) is available for a grant to a political subdivision after the commissioner of management
and budget determines that an amount sufficient to complete the project as described in this
act has been committed to the project, as required by Minnesota Statutes, section 16A.502.

APPROPRIATIONS

Sec. 2. UNIVERSITY OF MINNESOTA

Subdivision 1. Total Appropriation

$

298,533,000

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

Subd. 2. Higher Education Asset Preservation and Replacement (HEAPR)

250,000,000

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

Subd. 3. Greater Minnesota Academic Renewal

10,533,000

To modernize existing teaching, learning, and
research spaces on the Crookston, Duluth, and
Morris campuses, including:

(1) to predesign, design, renovate, furnish, and
equip campus teaching and learning spaces in
Dowell Hall and Owen Hall on the Crookston
campus;

(2) to predesign, design, renovate, furnish, and
equip campus teaching and learning spaces in
A.B. Anderson Hall on the Duluth campus;
and

(3) to predesign, design, renovate, furnish, and
equip campus teaching and learning spaces in
the Humanities Building and Blakely Hall on
the Morris campus.

Subd. 4. Pillsbury Hall Renewal

24,000,000

To predesign, design, renovate, furnish, and
equip historic Pillsbury Hall on the Twin
Cities campus.

Subd. 5. Glensheen Renewal

4,000,000

To predesign, design, and renovate the
Historic Glensheen Estate including but not
limited to the main house; the site structures,
terraces, and garden walls; and the carriage
house. This appropriation is not available until
the commissioner of management and budget
determines that an equal amount is committed
from other sources.

Subd. 6. University Share

Except for the appropriations for HEAPR and
Glensheen renewal, the appropriations in this
section are intended to cover approximately
two-thirds of the cost of each project. The
remaining costs must be paid from university
sources.

Subd. 7. Unspent Appropriations

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

Sec. 3. MINNESOTA STATE COLLEGES AND UNIVERSITIES

Subdivision 1. Total Appropriation

$

274,509,000

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

Subd. 2. Higher Education Asset Preservation and Replacement (HEAPR)

180,000,000

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

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

569,000

To design the renovation of the business and
nursing building on the Coon Rapids campus.

Subd. 4. Baccalaureate Expansion, Minneapolis Community and Technical College, North Hennepin Community College, Normandale Community College

4,270,000

To design, renovate, and equip space on the
college campuses in Minneapolis, Brooklyn
Park, and Bloomington to support
baccalaureate programming expansion.

Subd. 5. Bemidji State University

22,512,000

To demolish and replace Hagg Sauer Hall with
the Academic Learning Center Building; and
to design, renovate, and equip A.C. Clark
Library, Bangsberg Hall, Bensen Hall,
Bridgeman Hall, and Sattgast Hall.

Subd. 6. Central Lakes College, Brainerd

455,000

To design the renovation of the student
support and student life areas within the main
campus building.

Subd. 7. Century College

6,362,000

To design, renovate, and equip the
Engineering and Applied Technology Center,
welding lab, fabrication lab, auto disassembly,
and related student support and university
partnership space on the east campus.

Subd. 8. Fond du Lac Tribal and Community College, Maajiigi (Start to Grow)

1,157,000

To design, renovate, and equip classrooms and
offices for the elementary education program;
renovate kitchen area; to perform site work to
support outdoor learning; and to demolish
obsolete modular classroom/office building.

Subd. 9. Inver Hills Community College

698,000

To design the renovation of the Technology
and Business Center to include the link to
Heritage Hall.

Subd. 10. Minnesota State University, Mankato

6,478,000

To update design, renovate, renew, equip, and
repurpose the spaces in Wissink Hall, Morris
Hall, and Wiecking Center vacated when
occupants moved to the new Clinical Science
Building; and to install a solar array on the
roof of the new Clinical Science Building.

Subd. 11. Minnesota State University, Moorhead

628,000

To design the renovation of Weld Hall.

Subd. 12. Normandale Community College

12,636,000

To design Phases 1 and 2 of the renovation of
the College Services Building; and to renovate
and equip the first floor of the College
Services Building, including site
improvements that address ADA compliance
and storm water management.

Subd. 13. Northland Community and Technical College, East Grand Forks

2,425,000

To design, renovate, renew, and equip teaching
and learning lab space at the East Grand Forks
campus.

Subd. 14. Riverland Community College, Albert Lea

10,122,000

To design, renovate, renew, and equip
classroom and lab space at the Albert Lea
campus; to construct infill in Building C to
support auto and diesel labs; and to demolish
obsolete child care building.

Subd. 15. Rochester Community and Technical College

22,853,000

To demolish Plaza and Memorial Halls; to
design, renovate, renew, and equip classrooms
and labs; to construct an addition adjacent to
Endicott Hall; to construct a central chiller
plant; and to demolish the maintenance
building and child care building.

Subd. 16. Saint Paul College

995,000

To design the renovation of classroom, lab,
and student services space in the main campus
building.

Subd. 17. Vermilion Community College

2,349,000

To design, renovate, renew, and equip the
classroom building and common space.

Subd. 18. Debt Service

(a) Except as provided in paragraph (b), the
Board of Trustees shall pay the debt service
on one-third of the principal amount of state
bonds sold to finance projects authorized by
this section. After each sale of general
obligation bonds, the commissioner of
management and budget shall notify the board
of the amounts assessed for each year for the
life of the bonds.

(b) The board need not pay debt service on
bonds sold to finance HEAPR. Where a
nonstate match is required, the debt service is
due on a principal amount equal to one-third
of the total project cost, less the match
committed before the bonds are sold.

(c) The commissioner of management and
budget shall reduce the board's assessment
each year by one-third of the net income from
investment of general obligation bond
proceeds in proportion to the amount of
principal and interest otherwise required to be
paid by the board. The board shall pay its
resulting net assessment to the commissioner
of management and budget by December 1
each year. If the board fails to make a payment
when due, the commissioner of management
and budget shall reduce allotments for
appropriations from the general fund otherwise
available to the board and apply the amount
of the reduction to cover the missed debt
service payment. The commissioner of
management and budget shall credit the
payments received from the board to the bond
debt service account in the state bond fund
each December 1 before money is transferred
from the general fund under Minnesota
Statutes, section 16A.641, subdivision 10.

Subd. 19. Unspent Appropriations

(a) Upon substantial completion of a project
authorized in this section and after written
notice to the commissioner of management
and budget, the board must use any money
remaining in the appropriation for that project
for HEAPR under Minnesota Statutes, section
135A.046. The Board of Trustees must report
by February 1 of each even-numbered year to
the chairs of the house of representatives and
senate committees with jurisdiction over
capital investment and higher education
finance, and to the chairs of the house of
representatives Ways and Means Committee
and the senate Finance Committee, on how
the remaining money has been allocated or
spent.

(b) The unspent portion of an appropriation
for a project in this section that is complete is
available for HEAPR under this subdivision,
at the same campus as the project for which
the original appropriation was made and the
debt service requirement under this section is
reduced accordingly. Minnesota Statutes,
section 16A.642, applies from the date of the
original appropriation to the unspent amount
transferred.

Sec. 4. EDUCATION

Subdivision 1. Total Appropriation

$

16,692,000

To the commissioner of education for the
purposes specified in this section.

Subd. 2. Library Construction Grants

2,500,000

For library construction grants under
Minnesota Statutes, section 134.45.

Subd. 3. Independent School District No. 38, Red Lake

14,492,000

(a) From the maximum effort school loan fund
for a capital loan to Independent School
District No. 38, Red Lake, as provided in
Minnesota Statutes, sections 126C.60 to
126C.72. This appropriation is for predesign,
design, and construction of a connection
structure between the Red Lake Early
Learning Childhood Center and Red Lake
Elementary School; renovations to various
classrooms, labs, and support rooms; updating
of mechanical systems; and expansion of the
cafeteria. Before any capital loan contract is
approved under this subdivision, the district
must provide documentation acceptable to the
commissioner of education on how the capital
loan will be used.

(b) The commissioner of administration may
provide project management services to assist
the commissioner of education with oversight
of the project. No money for construction may
be distributed by the commissioner of
education to the recipient school district until
bids have been received on 100 percent of the
construction documents and satisfactory
documentation has been submitted to the
commissioner of education indicating the
project can be fully completed with money
available for the project.

(c) Notwithstanding the timelines in Minnesota
Statutes, section 126C.69, subdivision 11,
Independent School District No. 38, Red Lake,
must submit the question authorizing the
borrowing of money for the facilities to voters
of the district at the first general election
following final enactment of this subdivision.

(d) Notwithstanding Minnesota Statutes,
section 126C.69, subdivision 6, the application
submitted by Independent School District No.
38, Red Lake, on September 1, 2015, shall be
considered a sufficient application for this
loan. The local portion for this capital loan is
$94,231 under Minnesota Statutes, section
126C.69, subdivision 9. This amount shall be
disbursed for the approved project prior to the
state loan reimbursement payments to the
school district.

Sec. 5. MINNESOTA STATE ACADEMIES

Subdivision 1. Total Appropriation

$

13,212,000

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

Subd. 2. Asset Preservation

4,520,000

For capital asset preservation improvements
and betterments on both campuses of the
Minnesota State Academies, to be spent in
accordance with Minnesota Statutes, section
16B.307.

Subd. 3. Safety Corridor

5,300,000

To design, construct, furnish, and equip a
safety corridor on the Minnesota State
Academy for the Deaf campus, including but
not limited to abatement of asbestos and
hazardous materials, construction, and
renovations necessary to establish a central
point of access, a reception and visitor area,
and security monitoring with connections to
Smith, Quinn, and Noyes Halls. This
appropriation also includes money to
predesign, design, renovate, furnish, and equip
Smith and Quinn Halls, including but not
limited to design and abatement of asbestos
and hazardous materials, interior space,
restrooms, offices, classrooms, science labs,
and technology labs.

Subd. 4. Residence Hall Renovations

2,592,000

To predesign, design, renovate, furnish, and
equip Kramer, Brandeen, and Rode
dormitories on the Minnesota State Academy
for the Blind campus, including but not limited
to design and abatement of asbestos and
hazardous materials; correcting fire, life safety,
and other building code deficiencies; and to
replace or renovate the dormitories' HVAC,
plumbing, electrical, security, and life safety
systems.

Subd. 5. Campus Track

800,000

To remove the existing track and to predesign,
design, construct, and equip a new track to be
located on the Minnesota State Academies
campus.

Sec. 6. PERPICH CENTER FOR ARTS EDUCATION

$

4,000,000

To the commissioner of administration for
capital asset preservation improvements and
betterments at the Perpich Center for Arts
Education, to be spent in accordance with
Minnesota Statutes, section 16B.307.

Sec. 7. NATURAL RESOURCES

Subdivision 1. Total Appropriation

$

171,000,000

(a) To the commissioner of natural resources
for the purposes specified in this section.

(b) The appropriations in this section are
subject to the requirements of the natural
resources capital improvement program under
Minnesota Statutes, section 86A.12, unless
this section or the statutes referred to in this
section provide more specific standards,
criteria, or priorities for projects than
Minnesota Statutes, section 86A.12.

Subd. 2. Natural Resources Asset Preservation

130,000,000

For the renovation of state-owned facilities
and recreational assets operated by the
commissioner of natural resources to be spent
in accordance with Minnesota Statutes, section
84.946. Notwithstanding Minnesota Statutes,
section 84.946, the commissioner may use this
appropriation to replace buildings if,
considering the embedded energy in the
building, that is the most energy-efficient and
carbon-reducing method of renovation.

Subd. 3. Flood Hazard Mitigation

20,000,000

(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.

(b) To the extent practical, levee projects shall
meet the state standard of three feet above the
100-year flood elevation.

(c) Project priorities shall be determined by
the commissioner as appropriate and based on
need and may include acquisition of properties
prone to flooding.

(d) This appropriation includes money for the
following projects as prioritized by the
commissioner: Afton, Austin, Golden Valley,
Halstad, Hendrum, Montevideo, Moorhead,
Rushford, and Red River impoundments.

(e) 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.

(f) 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.

Subd. 4. Dam Renovation, Repair, Removal

1,000,000

(a) For design, engineering, and construction
to repair, reconstruct, or remove dams and
respond to dam safety emergencies. The
commissioner shall determine project priorities
as appropriate under Minnesota Statutes,
sections 103G.511 and 103G.515.

This appropriation may be used for
emergencies or for design and construction on
state-owned dams, including Lake Bronson,
George Lake, Moose Lake, Warren Lake, and
Hill Annex number 1.

(b) If the commissioner determines that a
project is not ready to proceed, this
appropriation may be used for other projects
on the commissioner's priority list.

Subd. 5. Buildings and Facilities Development

10,000,000

For the predesign of office buildings at
Bemidji and Spicer, for the acquisition and
modification of buildings at Cloquet to replace
the existing facilities, for the design and
construction of a drill core library expansion
at Hibbing, for the design and construction of
storage buildings, and for design and
construction to replace buildings that are in
crisis or poor condition as classified in the
Department of Administration's Facility
Condition Assessment Process.

Subd. 6. State Park and Recreation Area Accessibility

10,000,000

For the design and construction of
improvements to bring the facilities within
state parks to the Americans with Disabilities
Act standards. Priority shall be given for
improvements at the following parks: William
O'Brien, Fort Snelling, and Jay Cooke.

Subd. 7. Unspent Appropriations

The unspent portion of an appropriation for a
project in this section that is complete, upon
written notice to the commissioner of
management and budget, is available for asset
preservation under Minnesota Statutes, section
84.946. Minnesota Statutes, section 16A.642,
applies from the date of the original
appropriation to the unspent amount
transferred.

Sec. 8. POLLUTION CONTROL AGENCY

Subdivision 1. Total Appropriation

$

63,763,000

To the Pollution Control Agency for the
purposes specified in this section.

Subd. 2. Waste Disposal Engineering Closed Landfill

6,000,000

To design and construct remedial systems,
including cleanup and removal of a leaking
hazardous waste pit and protection of
groundwater, at the Waste Disposal
Engineering site in Anoka County in
accordance with the closed landfill program
under Minnesota Statutes, sections 115B.39
to 115B.42.

Subd. 3. Freeway Closed Landfill

52,763,000

To design and construct remedial systems,
including investigation and protection of
groundwater, and acquire land at the Freeway
Landfill and Dump in the city of Burnsville
in accordance with the closed landfill program
under Minnesota Statutes, sections 115B.39
to 115B.42.

Subd. 4. Organics Infrastructure Capital Assistance Program

5,000,000

For competitive grants to expand the organics
infrastructure by constructing, equipping,
expanding, and adding transfer capacity at
statewide compost facilities in accordance with
the solid waste capital assistance grant
program under Minnesota Statutes, section
115A.54.

Sec. 9. BOARD OF WATER AND SOIL RESOURCES

Subdivision 1. Total Appropriation

$

35,000,000

To the Board of Water and Soil Resources for
the purposes specified in this section.

Subd. 2. Reinvest in Minnesota (RIM) Reserve Program

30,000,000

(a) To acquire conservation easements from
landowners to preserve, restore, create, and
enhance wetlands and associated uplands of
prairie and grasslands, and restore and enhance
rivers and streams, riparian lands, and
associated uplands of prairie and grasslands
in order to protect soil and water quality,
support fish and wildlife habitat, reduce flood
damage, and provide other public benefits.
The provisions of Minnesota Statutes, section
103F.515, apply to this program.

(b) The board shall give priority to leveraging
federal money by enrolling targeted new lands
or enrolling environmentally sensitive lands
that have expiring federal conservation
agreements.

(c) The board is authorized to enter into new
agreements and amend past agreements with
landowners as required by Minnesota Statutes,
section 103F.515, subdivision 5, to allow for
restoration. Of this appropriation, up to five
percent may be used for restoration and
enhancement.

Subd. 3. Local Government Roads Wetland Replacement Program

5,000,000

To acquire land or permanent easements and
to restore, create, enhance, and preserve
wetlands to replace those wetlands drained or
filled as a result of the repair, reconstruction,
replacement, or rehabilitation of existing
public roads as required by Minnesota
Statutes, section 103G.222, subdivision 1,
paragraphs (l) and (m). The board may vary
the priority order of Minnesota Statutes,
section 103G.222, subdivision 3, paragraph
(a), to implement an in-lieu fee agreement
approved by the U.S. Army Corps of
Engineers under section 404 of the Clean
Water Act. The purchase price paid for
acquisition of land or perpetual easement must
be a fair market value as determined by the
board. The board may enter into agreements
with the federal government, other state
agencies, political subdivisions, nonprofit
organizations, fee title owners, or other
qualified private entities to acquire wetland
replacement credits in accordance with
Minnesota Rules, chapter 8420.

Sec. 10. AGRICULTURE

Subdivision 1. Total Appropriation

$

21,662,000

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

Subd. 2. Laboratory Building

20,621,000

To construct, renovate, and equip the
Department of Agriculture/Department of
Health Laboratory Building in St. Paul,
including but not limited to creating a
dedicated biosafety level 3 laboratory space,
to meet safety, energy, and operational
efficiency needs. $720,000 of this
appropriation is from the general fund in fiscal
year 2019 for relocation expenses associated
with this project.

Subd. 3. Lab Equipment

1,041,000

From the general fund in fiscal year 2019 to
the commissioner of agriculture to purchase
and install new equipment in the Department
of Agriculture's laboratory.

Sec. 11. RURAL FINANCE AUTHORITY.

$

20,000,000

For the purposes set forth in the Minnesota
Constitution, article XI, section 5, paragraph
(h), to the Rural Finance Authority to purchase
participation interests in or to make direct
agricultural loans to farmers under Minnesota
Statutes, chapter 41B. This appropriation is
for the beginning farmer program under
Minnesota Statutes, section 41B.039; the loan
restructuring program under Minnesota
Statutes, section 41B.04; the seller-sponsored
program under Minnesota Statutes, section
41B.042; the agricultural improvement loan
program under 41B.043; and the livestock
expansion loan program under Minnesota
Statutes, section 41B.045. All debt service on
bond proceeds used to finance this
appropriation must be repaid by the Rural
Finance Authority under Minnesota Statutes,
section 16A.643. Loan participations must be
priced to provide full interest and principal
coverage and a reserve for potential losses.
Priority for loans must be given first to basic
beginning farmer loans, second to
seller-sponsored loans, and third to agricultural
improvement loans.

Sec. 12. MINNESOTA ZOOLOGICAL GARDEN

Subdivision 1. Total Appropriation

$

34,750,000

To the Minnesota Zoological Garden Board
for the purposes specified in this section.

Subd. 2. Asset Preservation

13,750,000

For capital asset preservation improvements
and betterments to infrastructure and exhibits
at the Minnesota Zoo, to be spent in
accordance with Minnesota Statutes, section
16B.307. Notwithstanding the specified uses
of money under Minnesota Statutes, section
16B.307, the board may use this appropriation
to replace buildings that are in poor condition,
outdated, and no longer support the work of
the Minnesota Zoo and to construct and
renovate trails and roads on the Minnesota
Zoo site.

Subd. 3. Revitalize the Zoo

21,000,000

To design, renovate, construct, furnish, and
equip Minnesota Zoo facilities to repurpose
the closed monorail and portion of the Tropics
Trail; to improve paths and roadways,
accessibility, and guest amenities; and to
create a meerkat exhibit and improve the snow
monkey exhibit.

Sec. 13. ADMINISTRATION

Subdivision 1. Total Appropriation

$

47,846,000

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

Subd. 2. Centennial Office Building

3,165,000

For design phase services at the Centennial
Office Building to include: hazardous
materials abatement, site improvements,
building infrastructure, systems and envelope
repairs and replacement, and renovations
necessary to address programming needs.

Subd. 3. Capital Asset Preservation and Replacement Account

5,000,000

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

Subd. 4. Capitol Complex Monuments and Memorials

3,200,000

To design and complete repairs to monuments
and memorials located on the Capitol complex.

Subd. 5. Capitol Complex - Physical Security Upgrades

33,481,000

(a) $24,346,000 of this appropriation is for the
design, construction, and equipping required
to upgrade the physical security elements and
systems for the buildings listed in this
paragraph, their attached tunnel systems, their
surrounding grounds, and parking facilities as
identified in the 2017 Minnesota State Capitol
Complex Physical Security Predesign
completed by Miller Dunwiddie.
Improvements may include but are not limited
to design and abatement of asbestos and
hazardous materials, the installation of
bollards, blast protection, infrastructure
security screen walls, door access controls,
emergency call stations, security kiosks,
locking devices, and traffic control. This
appropriation includes money for work
associated with the following buildings:
Administration, Centennial, Judicial,
Ag/Health Lab, Minnesota History Center,
Capitol Complex Power Plant and Shops,
Stassen, State Office, and Veterans Service.

(b) $9,135,000 of this appropriation is from
the general fund in fiscal year 2019 for the
design, construction, and equipping required
to upgrade the physical security elements and
systems associated with the Andersen,
Freeman, Retirement Systems, and
Transportation Buildings and their attached
tunnel sections, their surrounding grounds,
and parking facilities as identified in the 2017
Minnesota State Capitol Complex Physical
Security Predesign completed by Miller
Dunwiddie. Improvements may include but
are not limited to design and abatement of
asbestos and hazardous materials, the
installation of bollards, blast protection,
infrastructure security screen walls, door
access controls, emergency call stations,
security kiosks, locking devices, and traffic
control.

Subd. 6. Building Efficiency Revolving Loan Fund

3,000,000

From the general fund in fiscal year 2019 to
establish a building efficiency revolving loan
fund to improve energy and water efficiency
in state facilities as permitted under Minnesota
Statutes, sections 16B.86 and 16B.87.

Sec. 14. AMATEUR SPORTS COMMISSION

Subdivision 1. Total Appropriation

$

3,997,000

To the Minnesota Amateur Sports
Commission for the purposes specified in this
section.

Subd. 2. National Sports Center

2,500,000

For demolition of a maintenance facility, and
to design, construct, and equip a new
maintenance facility at the National Sports
Center in Blaine.

Subd. 3. Asset Preservation

1,497,000

For asset preservation improvements and
betterments of a capital nature at the National
Sports Center in Blaine, to be spent in
accordance with Minnesota Statutes, section
16B.307.

Sec. 15. MILITARY AFFAIRS

Subdivision 1. Total Appropriation

$

25,578,000

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

Subd. 2. St. Cloud Readiness Center

4,450,000

To design and renovate existing space at the
St. Cloud Readiness Center, including
mechanical, electrical, building envelope,
energy efficiency, and life safety
improvements. The adjutant general may also
use this appropriation to construct and equip
an expansion of the facility.

Subd. 3. Wadena Readiness Center

2,157,000

To design and renovate existing space at the
Wadena Readiness Center, including
mechanical, electrical, building envelope,
energy efficiency, and life safety
improvements.

Subd. 4. Brainerd Readiness Center

4,143,000

To design and renovate existing space at the
Brainerd Readiness Center, including
mechanical, electrical, building envelope,
energy efficiency, and life safety
improvements.

Subd. 5. Grand Rapids Readiness Center

2,126,000

To design and renovate existing space at the
Grand Rapids Readiness Center, including
mechanical, electrical, building envelope,
energy efficiency, and life safety
improvements.

Subd. 6. Rosemount Readiness Center

10,507,000

To design and renovate existing space at the
Rosemount Readiness Center, including
mechanical, electrical, building envelope,
energy efficiency, and life safety
improvements.

Subd. 7. Fergus Falls Readiness Center

2,195,000

To design and renovate existing space at the
Fergus Falls Readiness Center, including
mechanical, electrical, building envelope,
energy efficiency, and life safety
improvements.

Sec. 16. TRANSPORTATION

Subdivision 1. Total Appropriation

$

67,368,000

To the commissioner of transportation for the
purposes specified in this section.

Subd. 2. Stone Arch Bridge

12,968,000

To predesign, design, repair, and rehabilitate
the Stone Arch Bridge in Minneapolis.

Subd. 3. Facilities Capital Program

40,000,000

From the bond proceeds account in the trunk
highway fund for the transportation facilities
capital program under Minnesota Statutes,
section 174.13, which supports the agency's
building infrastructure needs.

Subd. 4. State Airplanes

9,000,000

For the acquisition of two aircraft. Of this
appropriation, $1,800,000 is from the general
fund in fiscal year 2019 and $7,200,000 is
from the trunk highway fund in fiscal year
2019.

Subd. 5. Virginia - Highway 53

5,400,000

From the general fund in fiscal year 2019 for
a grant to the city of Virginia to repay loans
incurred by the city for costs related to utility
relocation for the Highway 53 project.

Sec. 17. METROPOLITAN COUNCIL

Subdivision 1. Total Appropriation

$

105,000,000

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

Subd. 2. Metropolitan Cities Inflow and Infiltration Grants

5,000,000

For grants to cities within the metropolitan
area, as defined in Minnesota Statutes, section
473.121, subdivision 2, for capital
improvements in municipal wastewater
collection systems to reduce the amount of
inflow and infiltration to the Metropolitan
Council's metropolitan sanitary sewer disposal
system. Grants from this appropriation are for
up to 50 percent of the cost to mitigate inflow
and infiltration in the publicly owned
municipal wastewater collection systems. To
be eligible for a grant, a city must be identified
by the council as a contributor of excessive
inflow and infiltration in the metropolitan
disposal system or have a measured flow rate
within 20 percent of its allowable
council-determined inflow and infiltration
limits. The council must award grants based
on applications from cities that identify
eligible capital costs and include a timeline
for inflow and infiltration mitigation
construction, pursuant to guidelines
established by the council.

Subd. 3. Busway and Express Bus Development

50,000,000

For regional express bus and busway corridors
including land and property acquisition,
predesign, design and engineering,
environmental testing and mitigation, utility
relocation, traffic mitigation, construction,
demolition, and furnishing and equipping
facilities for busway and express bus projects.
The council must allocate the money among
projects based on criteria in its transitway
capital improvement plan including:
consistency with the council's long-range
transportation policy plan; project readiness;
potential current and forecasted ridership;
expansion of the busway system; availability
of federal or other matching funds;
coordination with other major projects; and
additional criteria for priorities otherwise
specified in state law or rule applicable to a
busway transitway, including state law
authorizing state bond fund appropriations for
the busway transitway.

Subd. 4. Heywood II Bus Maintenance and Storage Facility

50,000,000

For the predesign, design, construction,
furnishing, and equipping of a facility of
approximately 360,000 square feet at 830
North 7th Street in Minneapolis for bus
storage and maintenance, operations, and
administrative offices.

Sec. 18. HUMAN SERVICES

Subdivision 1. Total Appropriation

$

63,437,000

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

Subd. 2. Minnesota Sex Offender Program - St. Peter

16,196,000

To design, renovate, furnish, and equip the
second phase of a multiphase project to
develop additional residential, program,
activity, and ancillary facilities for the
Minnesota sex offender program on the lower
campus of the St. Peter Regional Treatment
Center. This appropriation includes money to
design, renovate, construct, furnish, and equip
the north wing of Green Acres; the west,
south, and north wings of Sunrise; and the
Tomlinson Building. This appropriation also
includes money to: replace or renovate HVAC,
plumbing, electrical, security, and life safety
systems; address fire and life safety, and other
building code deficiencies; replace windows
and doors; tuck-point exterior building
envelopes; reconfigure and remodel space;
design and abate asbestos and other hazardous
materials; remove or demolish nonfunctioning
building components; and complete site work
necessary to support the programmed use of
these three buildings.

Subd. 3. St. Peter Regional Treatment Center Campus - Dietary Building HVAC and Electrical Replacement

2,200,000

To predesign, design, engineer, and renovate
the mechanical and electrical systems in the
Dietary Building on the St. Peter Regional
Treatment Center campus, including: the
upgrade, replacement, and improvement of
existing heating and ventilation equipment;
installation of air-conditioning equipment;
replacement of the building's outdated and
undersized electrical system; design and
abatement of asbestos and hazardous
materials; and structural, site, and utility work
necessary to support the project.

Subd. 4. Anoka Metro Regional Treatment Center - Roof and HVAC Replacement

6,750,000

To predesign, design, and engineer
improvements on the Anoka Metro Regional
Treatment Center campus, including but not
limited to design and abatement of asbestos
and hazardous materials, replacement of roofs
on residential units, installation of metal wall
cladding on the mechanical penthouses,
installation of new heating, ventilation, and
air conditioning systems, fire sprinkler
systems, electrical lighting systems in the
Miller Building, and installation of a new
heating system in the warehouse building.

Subd. 5. Anoka Metro Regional Treatment Center - Admissions Redesign

5,790,000

To predesign, design, engineer, renovate,
furnish, and equip part of the Miller Building
on the Anoka Regional Treatment Center
campus for a new, flexible living and
treatment unit to be used to evaluate new
patients upon admission, and to mitigate
existing ligature points by replacing necessary
fixtures as required by the Centers for
Medicare and Medicaid Services.

Subd. 6. Minnesota Sex Offender Program - Secure Supervised Housing

13,882,000

To predesign, design, construct, furnish, and
equip two new secure supervised living units
for the Minnesota sex offender program, to be
located on the St. Peter Regional Treatment
Center campus. Each unit will include space
for dining, living, group meeting and treatment
rooms, bedrooms, bathrooms, visitation, clinic
and professional staff, operations staff, patient
storage, operations storage, indoor recreation,
and outdoor activity space. This appropriation
includes money for predesign and design fees,
construction administration, project
management, site work, site and building
infrastructure, construction, and furniture,
fixtures, and equipment.

Subd. 7. Asset Preservation

18,619,000

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

Sec. 19. HEALTH

$

2,327,000

From the general fund in fiscal year 2019 to
the commissioner of health to purchase and
install equipment for the agency's Public
Health Lab.

Sec. 20. VETERANS AFFAIRS

Subdivision 1. Total Appropriation

$

13,124,000

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

Subd. 2. Asset Preservation

13,124,000

For asset preservation improvements and
betterments of a capital nature at the veterans
homes in Minneapolis, Hastings, Fergus Falls,
Silver Bay, and Luverne, and the Little Falls
Cemetery, to be spent in accordance with
Minnesota Statutes, section 16B.307.

Sec. 21. CORRECTIONS

Subdivision 1. Total Appropriation

$

63,100,000

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

Subd. 2. Asset Preservation

40,000,000

For asset preservation improvements and
betterments of a capital nature at Minnesota
correctional facilities statewide, to be spent in
accordance with Minnesota Statutes, section
16B.307.

Subd. 3. Minnesota Correctional Facility - Lino Lakes

5,200,000

To design, renovate, and equip an existing
vacant building into an offender living unit
that shall add at least 60 beds to the capacity
at the Minnesota Correctional Facility - Lino
Lakes. The renovation includes but is not
limited to removal of hazardous materials,
upgrades to comply with current building
codes, and construction of functional living
and program space.

Subd. 4. Minnesota Correctional Facility - Willow River

1,700,000

To design, construct, renovate, furnish, and
equip new and existing buildings and complete
associated site work to increase living unit and
programming capacity for the challenge
incarceration program by at least 45 beds at
the Minnesota Correctional Facility - Willow
River. This appropriation includes money for
design and abatement of asbestos and
hazardous materials.

Subd. 5. Minnesota Correctional Facility - St. Cloud

16,200,000

To design, upgrade, construct, replace, and
install new plumbing, ventilation, and exhaust
systems as required by code and to meet other
requirements. This appropriation includes
money for design and abatement of asbestos
and hazardous materials.

Subd. 6. Unspent Appropriations

The unspent portion of an appropriation for a
Department of Corrections project in this
section that is complete, upon written notice
to the commissioner of management and
budget, is available for asset preservation
under Minnesota Statutes, section 16B.307.
Minnesota Statutes, section 16A.642, applies
from the date of the original appropriation to
the unspent amount transferred.

Sec. 22. EMPLOYMENT AND ECONOMIC DEVELOPMENT

Subdivision 1. Total Appropriation

$

15,000,000

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

Subd. 2. Transportation Economic Development

5,000,000

For grants under Minnesota Statutes, section
116J.436.

Subd. 3. Wabasha - National Eagle Center and Wabasha Rivertown Resurgence

10,000,000

For a grant to the city of Wabasha to acquire
land, predesign, design, renovate, construct,
furnish, and equip the National Eagle Center
in order to expand program and exhibit space,
increase aviary space for eagles, and for
improvements to the riverfront in Wabasha
for infrastructure, large vessel landing areas
and docks, and public access and program
areas.

Sec. 23. MINNESOTA HOUSING FINANCE AGENCY

$

15,000,000

For transfer to the housing development fund
to finance the costs of rehabilitation to
preserve public housing under Minnesota
Statutes, section 462A.202, subdivision 3a.
For purposes of this section, "public housing"
means housing for low-income persons and
households financed by the federal
government and owned and operated by the
public housing authorities and agencies formed
by cities and counties. Public housing
authorities receiving a public housing
assessment composite score of 80 or above or
an equivalent designation are eligible to
receive funding. Priority must be given to
proposals that maximize federal or local
resources to finance the capital costs. The
priority in Minnesota Statutes, section
462A.202, subdivision 3a, for projects to
increase the supply of affordable housing and
the restrictions of Minnesota Statutes, section
462A.202, subdivision 7, do not apply to this
appropriation.

Sec. 24. PUBLIC FACILITIES AUTHORITY

Subdivision 1. Total Appropriation

$

167,000,000

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

Subd. 2. State Match for Federal Grants

25,000,000

To match federal grants for the clean water
revolving fund under Minnesota Statutes,
section 446A.07, and the drinking water
revolving fund under Minnesota Statutes,
section 446A.081. This appropriation must be
used for qualified capital projects.

Subd. 3. Water Infrastructure Funding Program

80,000,000

(a) For grants to eligible municipalities under
the water infrastructure funding program under
Minnesota Statutes, section 446A.072.

(b) $50,000,000 is for wastewater projects
listed on the Pollution Control Agency's
project priority list in the fundable range under
the clean water revolving fund program.

(c) $30,000,000 is for drinking water projects
listed on the commissioner of health's project
priority list in the fundable range under the
drinking water revolving fund program.

(d) After all eligible projects under paragraph
(b) or (c) have been funded, the Public
Facilities Authority may transfer any
remaining, uncommitted money to eligible
projects under a program defined in paragraph
(b) or (c) based on that program's project
priority list.

(e) Notwithstanding Minnesota Statutes,
section 446A.072, subdivision 5a, paragraph
(b), the Western Lake Superior Sanitary
District is eligible for a grant to predesign,
design, construct, furnish, and equip a
combined heat and power system.

Subd. 4. Point Source Implementation Grants Program

62,000,000

For grants to eligible municipalities under the
point source implementation grants program
under Minnesota Statutes, section 446A.073.
This appropriation must be used for qualified
capital projects.

Sec. 25. MINNESOTA HISTORICAL SOCIETY

Subdivision 1. Total Appropriation

$

40,388,000

To the Minnesota Historical Society for the
purposes specified in this section.

Subd. 2. Historic Sites Asset Preservation

10,388,000

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

Subd. 3. Historic Fort Snelling

30,000,000

To demolish the existing visitor center and to
renovate, construct, furnish, and equip
facilities, including landscaping and
wayfinding, to support visitor services and
history programs at Historic Fort Snelling.

Sec. 26. IRON RANGE RESOURCES AND REHABILITATION

$

1,900,000

To the commissioner of Iron Range resources
and rehabilitation to design, construct,
complete associated site work for, and install
water infrastructure including but not limited
to equipment that will replace aging water
lines and enhance the provision of water to
ski operations and fire protection at Giants
Ridge.

Sec. 27. BOND SALE EXPENSES

Subdivision 1. Total Appropriation

$

1,518,000

To the commissioner of management and
budget for the purposes specified in this
section.

Subd. 2. Bond Proceeds Fund

1,478,000

From the bond proceeds fund for bond sale
expenses under Minnesota Statutes, section
16A.641, subdivision 8.

Subd. 3. Trunk Highway Fund

40,000

From the bond proceeds account in the trunk
highway fund for bond sale expenses under
Minnesota Statutes, sections 16A.641,
subdivision 8, and 167.50, subdivision 4.

Sec. 28. BOND SALE AUTHORIZATION.

Subdivision 1.

Bond proceeds fund.

To provide the money appropriated in this act from
the bond proceeds fund, the commissioner of management and budget shall sell and issue
bonds of the state in an amount up to $1,491,039,000 in the manner, upon the terms, and
with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the
Minnesota Constitution, article XI, sections 4 to 7.

Subd. 2.

Maximum effort school loan fund.

To provide the money appropriated in this
act from the maximum effort school loan fund, the commissioner of management and budget
shall sell and issue bonds of the state in an amount up to $14,492,000 in the manner, upon
the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675,
and by the Minnesota Constitution, article XI, sections 4 to 7. The proceeds of the bonds,
except accrued interest and any premium received on the sale of the bonds, must be credited
to a bond proceeds account in the maximum effort school loan fund.

Subd. 3.

Trunk highway fund.

To provide the money appropriated in this article from
the bond proceeds account in the trunk highway fund, the commissioner of management
and budget shall sell and issue bonds of the state in an amount up to $40,040,000 in the
manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections
167.50 to 167.52, and by the Minnesota Constitution, article XIV, section 11, at the times
and in the amounts requested by the commissioner of transportation. The proceeds of the
bonds, except accrued interest and any premium received from the sale of the bonds, must
be deposited in the bond proceeds account in the trunk highway fund.

Sec. 29. BOND SALE SCHEDULE.

The commissioner of management and budget shall schedule the sale of state general
obligation bonds so that, during the biennium ending June 30, 2019, no more than
$1,148,411,000 will need to be transferred from the general fund to the state bond fund to
pay principal and interest due and to become due on outstanding state general obligation
bonds. During the biennium, before each sale of state general obligation bonds, the
commissioner of management and budget shall calculate the amount of debt service payments
needed on bonds previously issued and shall estimate the amount of debt service payments
that will be needed on the bonds scheduled to be sold. The commissioner shall adjust the
amount of bonds scheduled to be sold so as to remain within the limit set by this section.
The amount needed to make the debt service payments is appropriated from the general
fund as provided in Minnesota Statutes, section 16A.641.

Sec. 30. EFFECTIVE DATE.

Except as otherwise provided, this article is effective the day following final enactment.

ARTICLE 2

MISCELLANEOUS

Section 1.

Minnesota Statutes 2016, section 16B.86, is amended to read:

16B.86 PRODUCTIVITY BUILDING EFFICIENCY REVOLVING LOAN FUND
ACCOUNT.

The productivity building efficiency revolving loan account fund is a special account
in the state treasury. Money in the account is appropriated to the commissioner of
administration to make loans to finance agency projects that will result in either reduced
energy or water savings or other operating costs or increased revenues, or both, reductions
for a state agency.

Sec. 2.

Minnesota Statutes 2016, section 16B.87, subdivision 1, is amended to read:

Subdivision 1.

Committee.

The Productivity Building Efficiency Revolving Loan
Committee consists of the commissioners of administration, management and budget
commerce, and revenue pollution control. The commissioner of administration serves as
chair of the committee. The members serve without compensation or reimbursement for
expenses.

Sec. 3.

Minnesota Statutes 2016, section 16B.87, subdivision 3, is amended to read:

Subd. 3.

Repayment.

An agency receiving a loan under this section shall repay the loan
according to the terms of the loan agreement. The principal and interest must be paid to the
commissioner of administration who shall deposit it in the productivity building efficiency
revolving loan fund.

Sec. 4.

[137.681] PURPOSE.

Sections 137.681 to 137.684 provide for funding of a clinical research facility to improve
the capacity of the University of Minnesota Medical School to conduct clinical research
that addresses state health priorities.

Sec. 5.

[137.682] DEFINITIONS.

Subdivision 1.

Board.

"Board" means the Board of Regents of the University of
Minnesota.

Subd. 2.

Clinical research facility.

"Clinical research facility" means a facility located
on the Twin Cities campus of the University of Minnesota to advance the development of
collaborative team-based clinical research, consolidate disparate and segregated research
programs, and enable both the consolidation and expansion of such programs. A hospital
licensed under sections 144.50 to 144.56 is not a clinical research facility.

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of management and
budget.

Subd. 4.

Design phase.

"Design phase" means the design, site acquisition, site
preparation, and preconstruction services necessary for the project.

Subd. 5.

Project.

"Project" means the design, renovation, construction, furnishing, and
equipping of all or part of a structure, facility, infrastructure, and equipment necessary for
a clinical research facility approved by the board that will include research, clinical, office,
laboratory, and other support spaces.

Subd. 6.

Project costs.

"Project costs" means the sum of all obligations incurred, paid,
or to be paid that are reasonably required for the project, including:

(1) design, including soil and environmental testing, surveys, estimates, plans and
specifications, project management, supervision of construction, and other engineering and
architectural services;

(2) site acquisition and preparation;

(3) payments under construction contracts and payments for performance bonds; and

(4) purchase and installation of furniture, fixtures, and equipment.

Sec. 6.

[137.683] CONDITIONS FOR PAYMENTS TO UNIVERSITY.

Subdivision 1.

Certifications.

Before the commissioner may make any payments
authorized in this section to the board for the design phase of the project, the commissioner
must certify that the board has, by resolution, approved the maximum design phase cost of
the project. The board must certify to the commissioner the amount of the costs of issuance
and annual payments of principal and interest and trustee fees required to service any
obligations issued by the University of Minnesota for the design phase and the actual amount
of the state's annual payment to the University of Minnesota under subdivision 3.

Subd. 2.

Payments.

After the certification under subdivision 1, and on July 15 in
subsequent fiscal years and for so long thereafter as any debt issued by the board for the
project is outstanding, the state must transfer to the board annual payments as certified under
subdivision 1, up to the maximum amounts in the appropriation schedule under subdivision
3.

Subd. 3.

Appropriations.

Annual appropriations are made from the general fund to the
commissioner for transfer to the board as follows:

(1) up to $749,000 is appropriated beginning in the fiscal year of debt issuance, but no
earlier than fiscal year 2019, and each year thereafter up to 20 additional years, to make
payments to the University of Minnesota for costs of issuance and annual debt service and
trustee fees on up to $10,000,000 of debt issued by the University of Minnesota for the
design phase of the project; and

(2) any unexpended portions of this appropriation cancel to the general fund at the close
of each fiscal year.

Subd. 4.

Refunding of debt.

The board may refund any obligations issued pursuant to
subdivision 3, clause (1), if refunding is determined by the board to be in the best interest
of the university. Notwithstanding subdivision 3, clause (1), the principal amount of
obligations issued in a refunding shall not exceed the amount necessary to defease the
obligations outstanding immediately prior to refunding.

Sec. 7.

[137.684] NO FULL FAITH AND CREDIT.

Any bonds or other obligations issued by the board under sections 137.681 to 137.683
are not public debt of the state, and the full faith and credit and taxing powers of the state
are not pledged for their payment or of any payments that the state agrees to make under
sections 137.681 to 137.683.

Sec. 8.

[174.13] TRANSPORTATION FACILITIES CAPITAL PROGRAM.

Subdivision 1.

Establishment; accounts.

(a) A transportation facilities capital program
is established to prioritize among eligible projects that:

(1) support the programmatic mission of the department;

(2) extend the useful life of existing buildings; or

(3) renovate or construct facilities to meet the department's current and future operational
needs.

Projects under the transportation facilities capital program are funded by proceeds from the
sale of trunk highway bonds or from other funds appropriated for the purposes of this section.

(b) A transportation facilities capital account is established in the trunk highway fund.
The account consists of all money appropriated from the trunk highway fund for the purposes
of this section and any other money donated, allotted, transferred, or otherwise provided to
the account by law. Money in the account is appropriated to the commissioner for the
purposes specified and consistent with the standards and criteria set forth in this section.

(c) A transportation facilities capital account is established in the bond proceeds account
of the trunk highway fund. The account consists of trunk highway bond proceeds appropriated
to the commissioner. Money in the account may only be expended on trunk highway
purposes, which includes the purposes in this section.

Subd. 2.

Standards.

(a) Article XIV, section 11, of the Minnesota Constitution states
that trunk highway bonds may be issued to finance the construction, improvement, and
maintenance of the public highway system in the state. The legislature assumes that many
projects for preservation and replacement of portions of existing capital assets constitute
the construction, improvement, and maintenance of the public highway system within the
meaning of the Minnesota Constitution and capital expenditures under generally accepted
accounting principles as applied to public expenditures, and shall be financed more efficiently
and economically under the program than by direct appropriations for specific projects.

(b) When allocating funding under this section, the commissioner must review the
projects deemed eligible under subdivision 3 and prioritize allocations using the criteria in
subdivision 4. Money allocated to a specific project in an act of appropriation or other law
must be allocated as provided by the law.

Subd. 3.

Eligible expenditures; limitations.

(a) A project is eligible under this section
only if it is a capital expenditure on a capital building asset owned or to be owned by the
state within the meaning of generally accepted accounting principles as applied to public
expenditures.

(b) Capital budget expenditures that are eligible under this section include, but are not
limited to: acquisition of land and buildings, and the predesign, engineering, construction,
furnishing and equipping of district headquarter buildings, truck stations, salt storage or
other unheated storage buildings, deicing and anti-icing facilities, fuel dispensing facilities,
highway rest areas, and vehicle weigh and inspection stations.

Subd. 4.

Criteria for priorities.

When prioritizing funding allocation among projects
eligible under subdivision 3, the commissioner must consider:

(1) whether a project ensures the effective and efficient condition and operation of the
facility;

(2) the urgency in ensuring the safe use of existing buildings;

(3) the project's total life-cycle cost;

(4) additional criteria for priorities otherwise specified in state law, statute, or rule that
applies to a category listed in the act making an appropriation for the program; and

(5) any other criteria the commissioner deems necessary.

Sec. 9.

Minnesota Statutes 2017 Supplement, section 222.49, is amended to read:

222.49 RAIL SERVICE IMPROVEMENT ACCOUNT ACCOUNTS;
APPROPRIATION.

The (a) A rail service improvement account is created in the special revenue fund in the
state treasury. The account consists of funds as provided by law, and any other money
donated, allotted, transferred, or otherwise provided to the account, excluding bond proceeds
as authorized by article XI, section 5, clause (i), of the Minnesota Constitution. All money
so deposited is appropriated to the department for expenditure for rail service improvement
in accordance with applicable state and federal law. This appropriation shall not lapse but
shall be available until the purpose for which it was appropriated has been accomplished.

(b) A rail service improvement account is created in the bond proceeds fund. The account
consists of state bond proceeds appropriated to the commissioner. Money in the account
may only be expended for the purposes specified in section 222.50 that are permitted under
the Minnesota Constitution, article XI, section 5, clause (a) or (i).

Sec. 10.

Minnesota Statutes 2016, section 363A.36, subdivision 1, is amended to read:

Subdivision 1.

Scope of application.

(a) For all contracts for goods and services in
excess of $100,000, no department or agency of the state or public officer or agency subject
to section 16A.695 shall accept any bid or proposal for a contract or agreement from any
business having more than 40 full-time employees within this state on a single working day
during the previous 12 months, unless the commissioner is in receipt of the business'
affirmative action plan for the employment of minority persons, women, and qualified
disabled individuals. No department or agency of the state shall execute any such contract
or agreement until the affirmative action plan has been approved by the commissioner.
Receipt of a certificate of compliance issued by the commissioner shall signify that a firm
or business has an affirmative action plan that has been approved by the commissioner. A
certificate shall be valid for a period of four years. A municipality as defined in section
466.01, subdivision 1, that receives state money for any reason is encouraged to prepare
and implement an affirmative action plan for the employment of minority persons, women,
and the qualified disabled and submit the plan to the commissioner.

(b) This paragraph applies to a contract for goods or services in excess of $100,000 to
be entered into between a department or agency of the state or public officer or agency
subject to section 16A.695, and a business that is not subject to paragraph (a), but that has
more than 40 full-time employees on a single working day during the previous 12 months
in the state where the business has its primary place of business. A department or agency
of the state may not execute a contract or agreement with a business covered by this paragraph
unless the business has a certificate of compliance issued by the commissioner under
paragraph (a) or the business certifies that it is in compliance with federal affirmative action
requirements.

(c) This section does not apply to contracts entered into by the State Board of Investment
for investment options under section 356.645.

(d) The commissioner shall issue a certificate of compliance or notice of denial within
15 days of the application submitted by the business or firm.

Sec. 11.

Minnesota Statutes 2016, section 363A.36, subdivision 4, is amended to read:

Subd. 4.

Revocation of contract.

A contract awarded by a department or agency of the
state, or a public officer or agency subject to section 16A.695, may be terminated or abridged
by the department or agency, or public officer or agency subject to section 16A.695, because
of suspension or revocation of a certificate based upon a contractor's failure to implement
or make a good faith effort to implement an affirmative action plan approved by the
commissioner under this section. If a contract is awarded to a person who does not have a
contract compliance certificate required under subdivision 1, the commissioner may void
the contract on behalf of the state.

Sec. 12.

Minnesota Statutes 2016, section 363A.44, subdivision 1, is amended to read:

Subdivision 1.

Scope.

(a) No department, agency of the state, the Metropolitan Council,
or an agency subject to section 473.143, subdivision 1, or a public officer or agency subject
to section 16A.695, shall execute a contract for goods or services or an agreement for goods
or services in excess of $500,000 with a business that has 40 or more full-time employees
in this state or a state where the business has its primary place of business on a single day
during the prior 12 months, unless the business has an equal pay certificate or it has certified
in writing that it is exempt. A certificate is valid for four years.

(b) This section does not apply to a business with respect to a specific contract if the
commissioner of administration determines that application of this section would cause
undue hardship to the contracting entity. This section does not apply to a contract to provide
goods and services to individuals under chapters 43A, 62A, 62C, 62D, 62E, 256B, 256I,
256L, and 268A, with a business that has a license, certification, registration, provider
agreement, or provider enrollment contract that is prerequisite to providing those goods and
services. This section does not apply to contracts entered into by the State Board of
Investment for investment options under section 352.965, subdivision 4.

Sec. 13.

Minnesota Statutes 2016, section 462A.37, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Abandoned property" has the meaning given in section 117.025, subdivision 5.

(c) (b) "Community land trust" means an entity that meets the requirements of section
462A.31, subdivisions 1 and 2.

(d) (c) "Debt service" means the amount payable in any fiscal year of principal, premium,
if any, and interest on housing infrastructure bonds and the fees, charges, and expenses
related to the bonds.

(e) "Foreclosed property" means residential property where foreclosure proceedings
have been initiated or have been completed and title transferred or where title is transferred
in lieu of foreclosure.

(f) (d) "Housing infrastructure bonds" means bonds issued by the agency under this
chapter that are qualified 501(c)(3) bonds, within the meaning of Section 145(a) of the
Internal Revenue Code, finance qualified residential rental projects within the meaning of
Section 142(d) of the Internal Revenue Code, or are tax-exempt bonds that are not private
activity bonds, within the meaning of Section 141(a) of the Internal Revenue Code, for the
purpose of financing or refinancing affordable housing authorized under this chapter.

(g) (e) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.

(f) "Senior" means a person 55 years of age or older with an annual household income
not greater than 50 percent of:

(1) the metropolitan area median income for persons in the metropolitan area as defined
in section 473.121, subdivision 2; or

(2) the statewide median income for persons outside the metropolitan area.

(g) "Senior housing" means housing intended and operated for occupancy by at least
one senior per unit with at least 80 percent of the units occupied and for which there is
publication of, and adherence to, policies and procedures that demonstrate an intent by the
owner or manager to provide housing for seniors. Senior housing may be developed in
conjunction with and as a distinct portion of mixed-income senior housing developments
which use a variety of public or private financing sources.

(h) "Supportive housing" means housing that is not time-limited and provides or
coordinates with linkages to services necessary for residents to maintain housing stability
and maximize opportunities for education and employment.

EFFECTIVE DATE.

This section is effective the day following final enactment for
bonds authorized in 2018 and thereafter.

Sec. 14.

Minnesota Statutes 2016, section 462A.37, is amended by adding a subdivision
to read:

Subd. 2d.

Additional authorization.

In addition to the amount authorized in subdivisions
2, 2a, 2b, and 2c, the agency may issue up to $100,000,000 in housing infrastructure bonds
in one or more series to which the payments under this section may be pledged.

Sec. 15.

Minnesota Statutes 2017 Supplement, section 462A.37, subdivision 5, is amended
to read:

Subd. 5.

Additional appropriation.

(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 subdivisions 2a, 2b, and 2c, and 2d.

(b) Each July 15, beginning in 2015 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 33, 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.

(c) Each July 15, beginning in 2017 and through 2038, if any housing infrastructure
bonds issued under subdivision 2b remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $800,000
annually. The amounts necessary to make the transfers are appropriated from the general
fund to the commissioner of management and budget.

(d) Each July 15, beginning in 2018 and through 2039, if any housing infrastructure
bonds issued under subdivision 2c remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $2,800,000
annually. The amounts necessary to make the transfers are appropriated from the general
fund to the commissioner of management and budget.

(e) Each July 15, beginning in 2020 and through 2041, if any housing infrastructure
bonds issued under subdivision 2c remain outstanding, the commissioner of management
and budget must transfer to the housing infrastructure bond account established under section
462A.21, subdivision 33, the amount certified under paragraph (a), not to exceed $4,000,000
in fiscal year 2021 and $8,000,000 annually each year thereafter. The amounts necessary
to make the transfers are appropriated from the general fund to the commissioner of
management and budget.

(e) (f) The agency may pledge to the payment of the housing infrastructure bonds the
payments to be made by the state under this section.

Sec. 16.

Laws 2009, chapter 93, article 1, section 14, subdivision 3, as amended by Laws
2011, First Special Session chapter 12, section 37, is amended to read:

Subd. 3. Veterans Cemeteries

1,500,000

Of this amount, up to $500,000 is to acquire
land located in southeastern, southwestern,
and northeastern Minnesota for publicly
owned veterans cemeteries, to be operated by
the commissioner of veterans affairs. The
commissioner also must seek donations of
land for the cemeteries. The balance of the
appropriation is to predesign and design the
cemeteries. Federal reimbursement of design
costs for each cemetery must be deposited in
the state treasury and credited to a special
account and is appropriated to the
commissioner of veterans affairs to design the
remaining cemeteries. Following completion
of all design of the legislatively authorized
Minnesota state veterans cemeteries in
Redwood, St. Louis, and Fillmore Counties,
final federal reimbursement of predesign and
design costs is appropriated to the
commissioner for asset preservation of
veterans homes statewide, to be spent in
accordance with Minnesota Statutes, section
16B.307. Notwithstanding Minnesota Statutes,
section 16A.642: (1) federal reimbursement
may be sought for each cemetery and must be
spent to acquire land for, to predesign and
design additional cemeteries, or for asset
preservation as provided in this subdivision;
and (2) the bond sale authorization and
appropriation of bond proceeds for this project
are available until December 31, 2022.

Sec. 17.

Laws 2014, chapter 294, article 1, section 5, subdivision 3, is amended to read:

Subd. 3. New Residence Hall

10,654,000

To complete the design of and perform
asbestos and hazardous materials abatement
and demolition of Frechette Hall and to design,
construct, furnish, and equip a new boys'
dormitory on the Minnesota State Academy
for the Deaf campus. The unspent portion of
this appropriation after the project has been
substantially completed, upon written notice
to the commissioner of management and
budget, is available for asset preservation
under Minnesota Statutes, section 16B.307.
Minnesota Statutes, section 16A.642, applies
from the date of the original appropriation to
the unspent amount transferred.

Sec. 18.

Laws 2014, chapter 295, section 9, is amended to read:

Sec. 9. CORRECTIONS

$

18,000,000

To the commissioner of administration to
design, construct, furnish, and equip phase
one of a new health services unit, a new
service corridor and security station leading
to the unit, and a mechanical building to serve
the new health unit and associated utility
infrastructure systems and site work; and to
design phase two consisting of new intake,
warehouse, and loading dock buildings
associated utility infrastructure systems and
sitework and all associated repurposing,
including asbestos and hazardous materials
abatement of interior spaces that were formally
used for the occupancies being moved to the
new phase one and two buildings at the
Minnesota Correctional Facility in St. Cloud.
Any unspent portion of this appropriation not
needed to complete this work, upon written
notice to the commissioner of management
and budget, may be used for the purposes
described in Laws 2017, First Special Session
chapter 8, article 1, section 19, subdivision 3,
as amended in section 22, and notwithstanding
Minnesota Statutes, section 16A.642, is
available until December 31, 2020.

Sec. 19.

Laws 2017, First Special Session chapter 8, article 1, section 6, subdivision 6, is
amended to read:

Subd. 6. State Trail, Recreation Area, and Park Acquisition and Development

18,698,000 18,048,000

(a) $2,590,000 is for the Glacial Lakes Trail,
to complete an approximately 6-1/4 mile trail
connection between New London and Sibley
State Park, and repair of the bicycle trail in
Sibley State Park.

(b) $3,300,000 is to design, develop, and
complete the Heartland State Trail from
Detroit Lakes to Frazee and, to the extent there
is sufficient money, for work on the spur from
Park Rapids to Itasca State Park.

(c) $3,600,000 is for acquisition and
development in the Cuyuna Country State
Recreation Area, including the Cuyuna
Mountain Bike System.

(d) $1,600,000 is to construct, furnish, and
equip a multiuse state trail connection between
the city of Little Falls and the Soo Line Trails
as part of the Camp Ripley/Veterans State
Trail in Morrison County. The trail connection
may include separated segments to
accommodate recreational vehicles separately
from nonmotorized vehicles and pedestrians.

(e) $3,500,000 is for continued development
of Lake Vermilion-Soudan Underground Mine
State Park recreational facilities.

(f) $328,000 is for design and acquisition of
the Mill Towns State Trail from Faribault to
Northfield.

(g) $3,130,000 is for acquisition and
development of the Gitchi-Gami State Trail,
from Grand Marais to Cascade State Park, and
through the town of Tofte.

(h) The commissioner may allocate money
not needed to complete a project listed in this
subdivision to another project listed in this
subdivision that needs additional money to be
completed. For any project listed in this
subdivision that the commissioner determines
is not ready to proceed, the commissioner may
reallocate that project's money to another
project described in this subdivision or other
state trail, recreation area, or park
infrastructure. The chairs of the house of
representatives and senate committees with
jurisdiction over environment and natural
resources and legislators from the affected
legislative districts must be notified of any
changes.

Sec. 20.

Laws 2017, First Special Session chapter 8, article 1, section 15, subdivision 3,
is amended to read:

Subd. 3. Local Road Improvement Fund Grants

115,932,000

(a) From the bond proceeds account in the
state transportation fund as provided in
Minnesota Statutes, section 174.50, for trunk
highway corridor projects under Minnesota
Statutes, section 174.52, subdivision 2, 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.

(b) Of this amount, $9,000,000 is for a grant
to Anoka County to realign and make
associated improvements to design, acquire
land for, engineer, and construct improvements
to, including the realignment of County
State-Aid Highway 23 (Lake Drive), County
State-Aid Highway 54 (West Freeway Drive),
and to Hornsby Street in the city of Columbus
to support the overall interchange project.

(c) Of this amount, $3,246,000 is for a grant
to the city of Blaine to predesign, design, and
reconstruct 105th Avenue in the vicinity of
the National Sports Center in Blaine. The
reconstruction will include changing the street
from five lanes to four lanes with median, turn
lanes, sidewalk, trail, landscaping, lighting,
and consolidation of access driveways. This
appropriation is not available until the
commissioner of management and budget
determines that at least $3,000,000 is
committed to the project from sources
available to the city, including municipal state
aid and county turnback funds.

(d) Of this amount, $25,000,000 is for a grant
to Hennepin County, the city of Minneapolis,
or both, for design, right-of-way acquisition,
engineering, and construction of public
improvements related to the Interstate
Highway 35W and Lake Street access project
and related improvements within the Interstate
Highway 35W corridor, notwithstanding any
provision of Minnesota Statutes, section
174.52, or rule to the contrary. This
appropriation is not available until the
commissioner of management and budget
determines that an amount sufficient to
complete this portion of the Interstate
Highway 35W and Lake Street access project
has been committed to this portion of the
project.

(e) Of this amount, $10,500,000 is for a grant
to Carver County for environmental analysis
and to acquire right-of-way access, predesign,
design, engineer, and construct an interchange
at marked Trunk Highway 212 and Carver
County Road 44 in the city of Chaska,
including a new bridge and ramps, to support
the development of approximately 400 acres
of property in the city of Chaska's
comprehensive plan.

(f) Of this amount, $700,000 is for a grant to
Redwood County for improvements to Nobles
Avenue, including paving, as the main access
road to a new State Veterans Cemetery to be
located in Paxton Township.

(g) Of this amount, $1,000,000 is for a grant
to the town of Appleton in Swift County for
upgrades to an existing township road to
provide for a paved, ten-ton capacity township
road extending between marked Trunk
Highways 7 and 119.

(h) Of this amount, $20,500,000 is for a grant
to Ramsey County for preliminary and final
design, right-of-way acquisition, engineering,
contract administration, and construction of
public improvements related to the
construction of the interchange of marked
Interstate Highway 694 and Rice Street,
Ramsey County State-Aid Highway 49, in
Ramsey County.

(i) Of this amount, $11,300,000 is for a grant
to Hennepin County for preliminary and final
design, engineering, environmental analysis,
right-of-way acquisition, construction, and
reconstruction of local roads related to the (1)
realignment at the intersections of marked U.S.
Highway 12 with Hennepin County State-Aid
Highway 92; (2) realignment and safety
improvements at the intersection of marked
U.S. Highway 12 with Hennepin County
State-Aid Highway 90; and (3) safety median
improvements from the interchange with
Wayzata Boulevard in Wayzata to
approximately one-half mile east of the
interchange of marked U.S. Highway 12 with
Hennepin County State-Aid Highway 6.

(j) Of this amount, $1,000,000 is for a grant
to the city of Inver Grove Heights for
preliminary design, design, engineering, and
reconstruction of Broderick Boulevard
between 80th Street and Concord Boulevard
abutting Trunk Highway 52 and Inver Hills
Community College in Inver Grove Heights.
The project includes replacement or renovation
of public infrastructure, including water lines,
sanitary sewers, storm water sewers, and other
public utilities. This appropriation does not
require a nonstate contribution.

(k) Of this amount, $2,350,000 is for a grant
to McLeod County to acquire land or interests
in land and to design and construct a new
urban street extension of County State-Aid
Highway (CSAH) 15, including railroad
crossing, storm water, and drainage
improvements.

(l) Of this amount, $6,000,000 is for a grant
to the city of Baxter for 50 percent of total
project cost for the acquisition of land or
interests in land, environmental analysis and
environmental cleanup, predesign, design,
engineering, and construction of improvements
to Cypress Drive, including expansion to a
four-lane divided urban roadway, between
Excelsior Road and College Road.

Sec. 21.

Laws 2017, First Special Session chapter 8, article 1, section 15, subdivision 11,
is amended to read:

Subd. 11. Grand Rapids - Pedestrian Bridge

750,000

For a grant to the city of Grand Rapids to
design the construction of and construct a
bridge over the Mississippi River for
pedestrian and bicycle use to provide a safe
alternative route to the existing marked Trunk
Highway 169 vehicle bridge, and to serve as
a connection to existing trail systems on each
side of the river. This appropriation is not
available until the commissioner determines
that at least an equal amount has been
committed to the project from nonstate
sources.

Sec. 22.

Laws 2017, First Special Session chapter 8, article 1, section 19, subdivision 3,
is amended to read:

Subd. 3. Minnesota Correctional Facility - St. Cloud

19,000,000

To construct and equip a new intake unit and
a loading dock with a secure connection to a
new central warehouse at the St. Cloud
correctional facility. To design and complete
hazardous materials abatement, site
improvements, and utility infrastructure work,
and to renovate, construct, furnish, and equip
the second phase of the two-phase project
including building additions and renovation
of existing areas to provide improved laundry,
warehouse, canteen, property, intake, storage,
and loading dock areas and security at the St.
Cloud correctional facility.

Sec. 23.

Laws 2017, First Special Session chapter 8, article 1, section 23, subdivision 3,
is amended to read:

Subd. 3. Historic Fort Snelling

4,000,000

To design facilities to support visitor services
and history programs at Historic Fort Snelling.
Upon completion of design, the unspent
portion of this appropriation is available for
the next phase of the project, to demolish the
existing visitor center, and to renovate,
construct, furnish, and equip a new visitor
center at Historic Fort Snelling.

Sec. 24. EFFECTIVE DATE.

Except as otherwise provided, this article is effective the day following final enactment.