HF 5162

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/09/2024 11:21am

A bill for an act
relating to capital investment; authorizing spending to acquire and better land and
buildings and for other improvements of a capital nature with certain conditions;
establishing and modifying programs; canceling prior appropriations; appropriating
money; amending Minnesota Statutes 2022, sections 16A.86, subdivisions 3a, 4;
16B.325, as amended; 16B.335, subdivision 4; Minnesota Statutes 2023
Supplement, section 174.38, subdivision 3; Laws 2023, chapter 71, article 1, section
6, subdivision 4; proposing coding for new law in Minnesota Statutes, chapters
16A; 16B; 473; repealing Laws 2023, chapter 53, article 17, section 2.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin CAPITAL IMPROVEMENT APPROPRIATIONS. new text end

new text begin (a) The sums shown in the column under "Appropriations" are appropriated from the
general fund in fiscal year 2025 to the state agencies or officials indicated, to be spent for
public purposes. These are onetime appropriations. Money appropriated in this act is available
until the project is completed or abandoned, subject to Minnesota Statutes, section 16A.642.
new text end

new text begin (b) For any project funded in whole or in part by this act, workers on the project must
be paid at least the prevailing wage rate as defined in Minnesota Statutes, section 177.42,
subdivision 6, and the project is subject to the requirements and enforcement provisions in
Minnesota Statutes, sections 177.27, 177.30, 177.32, and 177.41 to 177.45. For the purposes
of this act, "project" means demolition, erection, construction, remodeling, or repairing of
a public building, facility, or other public work financed in whole or part by state funds.
Project also includes demolition, erection, construction, remodeling, or repairing of a
building, facility, or public work when the acquisition of property, predesign, design, or
demolition is financed in whole or in part by state funds.
new text end

new text begin (c) Money appropriated in this act: (1) is available for a grant 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; (2) may be used to pay state agency staff costs that are attributed directly
to the capital program or project for capitalizable staff costs; and (3) is subject to the policies
and procedures adopted by the commissioner of management and budget or otherwise
specified in applicable law.
new text end

new text begin (d) Recipients of grants from money appropriated in this act must demonstrate to the
commissioner of the agency making the grant that the recipient has the ability and a plan
to fund the program intended for the facility. This paragraph does not apply to state agencies.
new text end

new text begin APPROPRIATIONS new text end

Sec. 2. new text begin EDUCATION new text end

new text begin $ new text end

new text begin 23,425,000 new text end

new text begin To the commissioner of education for library
construction grants under Minnesota Statutes,
section 134.45.
new text end

Sec. 3. new text begin ADMINISTRATION 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 10,050,000 new text end

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

new text begin Subd. 2. new text end new text begin ADA Building Accommodation new text end

new text begin 750,000 new text end

new text begin For capital improvement expenses in
accordance with Minnesota Statutes, section
16B.4805.
new text end

new text begin Subd. 3. new text end new text begin Sustainable Building Guidelines new text end

new text begin 4,300,000 new text end

new text begin To develop, oversee, and administer
sustainable building guidelines under
Minnesota Statutes, section 16B.325, in
consultation with the commissioner of
commerce and the Center for Sustainable
Building Research at the University of
Minnesota. This appropriation includes money
for the commissioner of administration to
contract with the Center for Sustainable
Building Research to administer the
guidelines. This is a onetime appropriation
and is available until June 30, 2027.
new text end

new text begin Subd. 4. new text end new text begin City of St. Paul; Planning and Economic Development new text end

new text begin 5,000,000 new text end

new text begin (a) For a grant to the city of St. Paul
Department of Planning and Economic
Development to improve the livability,
economic health, and safety of communities
within the Capitol Area. The city of St. Paul
must consult with the Capitol Area
Architectural and Planning Board prior to the
expenditure of these funds.
new text end

new text begin (b) On or before October 1, 2025, the city of
St. Paul and the Capitol Area Architectural
and Planning Board must jointly report to the
speaker of the house, the majority leader of
the senate, the house minority leader, and the
senate minority leader on the expenditure of
the funds appropriated under this section.
new text end

Sec. 4. new text begin METROPOLITAN COUNCIL new text end

new text begin $ new text end

new text begin 3,780,000 new text end

new text begin To the Metropolitan Council for community
tree planting grants under Minnesota Statutes,
section 473.355. This appropriation is for
removal and replacement of ash trees on
privately owned land that pose significant
public safety concerns.
new text end

Sec. 5. new text begin HUMAN 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 2,000,000 new text end

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

new text begin Subd. 2. new text end new text begin Early Childhood Facilities new text end

new text begin 2,000,000 new text end

new text begin For grants under Minnesota Statutes, section
256E.37, to predesign, design, construct,
renovate, furnish, and equip early childhood
learning facilities.
new text end

Sec. 6. new text begin CORRECTIONS new text end

new text begin $ new text end

new text begin 3,906,000 new text end

new text begin To the commissioner of administration for
asset preservation improvements and
betterments of a capital nature at the
Minnesota correctional facilities statewide to
be spent in accordance with Minnesota
Statutes, section 16B.307. Notwithstanding
the specified uses of money under Minnesota
Statutes, section 16B.307, the commissioner
may use this appropriation for capital
expenditures allowed under Minnesota
Statutes, section 16B.307, that do not
constitute betterments and capital
improvements within the meaning of the
Minnesota Constitution, article XI, section 5,
clause (a). The report required under
Minnesota Statutes, section 16B.307,
subdivision 2, must include a list of projects
that have been paid for with this appropriation.
new text end

Sec. 7. new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin To the commissioner of employment and
economic development for a grant to the Saint
Paul and Minnesota Foundation for promotion,
fundraising, and other supporting efforts to
raise at least $5,000,000 in nonstate funds
toward capital improvements consistent with
the Capitol Mall Design Framework update.
This grant shall be managed in compliance
with the grantmaking requirements in
Minnesota Statutes, sections 16B.97 to
16B.991.
new text end

Sec. 8. new text begin CANCELLATIONS.
new text end

new text begin The amounts of the general fund appropriations listed in the cancellation report submitted
to the legislature in January 2024, pursuant to Minnesota Statutes, section 16A.642, are
canceled on the effective date of this section. If an appropriation in this section is canceled
more than once, the cancellation must be given effect only once.
new text end

Sec. 9. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 2

MISCELLANEOUS

Section 1.

Minnesota Statutes 2022, section 16A.86, subdivision 3a, is amended to read:

Subd. 3a.

Information provided.

All requests for state assistance under this section
must include the following information:

(1) the name of the political subdivision that will own the capital project for which state
assistance is being requested;

(2) the public purpose of the project;

(3) the extent to which the political subdivision has or expects to provide local, private,
user financing, or other nonstate funding for the project;

(4) a list of the bondable activities that the project encompasses; examples of bondable
activities are public improvements of a capital nature for land acquisition, predesign, design,
construction, and furnishing and equipping for occupancy;

(5) whether the project will require new or additional state operating subsidies;

(6) whether the governing body of the political subdivision requesting the project has
passed a resolution in support of the project and has established priorities for all projects
within its jurisdiction for which bonding appropriations are requested when submitting
multiple requests;

(7) if the project requires a predesign under section 16B.335, whether the predesign has
been completed at the time the capital project request is submitted, and whether the political
subdivision has submitted the project predesign to the commissioner of administration for
review and approval; deleted text begin and
deleted text end

new text begin (8) the debt capacity of the political subdivision, calculated as the difference between
the maximum net debt that the political subdivision may incur under chapter 475 or other
applicable law and the debt the political subdivision has outstanding as of the date of the
submission of information under this subdivision;
new text end

new text begin (9) whether the political subdivision has a capital improvement plan process that meets
the criteria for exemption under section 16B.336, subdivision 5, paragraph (b); and
new text end

deleted text begin (8) deleted text end new text begin (10) new text end if applicable, the information required under section 473.4485, subdivision 1a.

Sec. 2.

Minnesota Statutes 2022, section 16A.86, subdivision 4, is amended to read:

Subd. 4.

Funding.

(a) The state share of a project covered by this section new text begin and any capital
project grant to a nonprofit organization subject to section 16A.642 new text end must be no more than
half the total cost of the project, including predesign, design, construction, furnishings, and
equipment, except as provided in paragraph (b) or (c). This subdivision does not apply to
a project proposed by a school district or other school organization. new text begin The state share of a
project includes state assistance in any manner, including but not limited to a direct
appropriation, a grant awarded through a grant program administered by a state entity, or
a combination of state assistance appropriated and granted by multiple state entities. The
nonstate share of a project may be funded by federal, local, private, or other funds, or a
combination thereof, from nonstate sources.
new text end

(b) The state share may be more than half the total cost of a project if the project is
deemed needed as a result of a disaster or to prevent a disaster or is located in a political
subdivision with a very low average net tax capacity.

(c) Nothing in this section prevents the governor from recommending, or the legislature
from considering or funding, projects that do not meet the deadline in subdivision 2 or a
state share that is greater than half the total cost of the project when the governor or the
legislature determines that there is a compelling reason for the recommendation or funding.

Sec. 3.

new text begin [16A.865] NOTICE OF STATE CONTRIBUTION.
new text end

new text begin Subdivision 1. new text end

new text begin Notice required. new text end

new text begin When practicable, a recipient of a grant of state bond
proceeds for a capital project or a direct recipient of an appropriation from any state funds
for a capital project must prominently display a notice on the property stating that the project
was funded with state taxes collected statewide.
new text end

new text begin Subd. 2. new text end

new text begin Content of notice. new text end

new text begin The notice must display the logo provided by the
commissioner under subdivision 5, and identify the project as "funded with a grant of state
money from taxes collected statewide." The notice may include a brief name for the project
and may specify the proportion of the funding from state money compared to money from
nonstate sources. The notice may include logos, seals, or marks of other contributors to the
cost of the project.
new text end

new text begin Subd. 3. new text end

new text begin Water infrastructure project. new text end

new text begin For a drinking water or wastewater infrastructure
project, the notice required under this section must be included on city utility billing
statements in all formats that the city provides billing statements to customers.
new text end

new text begin Subd. 4. new text end

new text begin Performance venues. new text end

new text begin For performance venue projects, the notice must be
included in programs and on the venue's website where performances are advertised, in
addition to on a sign posted at the venue.
new text end

new text begin Subd. 5. new text end

new text begin Logo. new text end

new text begin The commissioner must develop a logo for use on signs required under
subdivision 1.
new text end

new text begin Subd. 6. new text end

new text begin Sign templates. new text end

new text begin The commissioner must post on its website downloadable,
print-ready PDF files of sign templates that meet the requirements of subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to projects receiving a grant from an appropriation enacted after January 1, 2024.
new text end

Sec. 4.

Minnesota Statutes 2022, section 16B.325, as amended by Laws 2023, chapter 60,
article 12, section 2, is amended to read:

16B.325 SUSTAINABLE BUILDING GUIDELINES.

Subdivision 1.

deleted text begin Development of deleted text end Sustainable building guidelines.

The Department of
Administration and the Department of Commerce, with the assistance of other agencies,
shall develop new text begin and maintain new text end sustainable building design guidelines for all new state buildings
deleted text begin by January 15, 2003, deleted text end and for all major renovations of state buildings deleted text begin by February 1, 2009.
The primary objectives of these guidelines are to ensure that all new state buildings, and
major renovations of state buildings, initially exceed the state energy code, as established
in Minnesota Rules, chapter 7676, by at least 30 percent deleted text end .

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

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

new text begin (b) "CSBR" means the Center for Sustainable Building Research at the University of
Minnesota.
new text end

new text begin (c) "Guidelines" means the sustainable building design guidelines developed under this
section.
new text end

new text begin (d) "Major renovation" means a project that:
new text end

new text begin (1) has a renovated conditioned area that is at least 10,000 square feet; and
new text end

new text begin (2) includes, at a minimum, the replacement of the mechanical, ventilation, or cooling
system of a building or a section of a building, whether or not the building is served by an
adjacent building or district system impacted by the scope of the project.
new text end

new text begin (e) "New building" means a newly constructed structure and additions to existing
buildings that include spaces that meet the following criteria:
new text end

new text begin (1) the space is conditioned, whether or not its source of energy is from an adjacent
building or district system; and
new text end

new text begin (2) the project size is at least 10,000 gross square feet of conditioned space.
new text end

new text begin (f) "Project" means major renovation of a building or construction of a new building
that meets the requirements under this section.
new text end

deleted text begin Subd. 2. deleted text end

deleted text begin Lowest possible cost; energy conservation. deleted text end

deleted text begin The guidelines must:
deleted text end

deleted text begin (1) focus on achieving the lowest possible lifetime cost, considering both construction
and operating costs, for new buildings and major renovations;
deleted text end

deleted text begin (2) allow for revisions that encourage continual energy conservation improvements in
new buildings and major renovations;
deleted text end

deleted text begin (3) define "major renovations" for purposes of this section to encompass not less than
10,000 square feet or not less than the replacement of the mechanical, ventilation, or cooling
system of a building or a building section;
deleted text end

deleted text begin (4) establish sustainability guidelines that include air quality and lighting standards and
that create and maintain a healthy environment and facilitate productivity improvements;
deleted text end

deleted text begin (5) establish resiliency guidelines to encourage design that allows buildings to adapt to
and accommodate projected climate-related changes that are reflected in both acute events
and chronic trends, including but not limited to changes in temperature and precipitation
levels;
deleted text end

deleted text begin (6) specify ways to reduce material costs; and
deleted text end

deleted text begin (7) consider the long-term operating costs of the building, including the use of renewable
energy sources and distributed electric energy generation that uses a renewable source or
natural gas or a fuel that is as clean or cleaner than natural gas.
deleted text end

new text begin Subd. 2a. new text end

new text begin Guidelines; purpose. new text end

new text begin (a) The primary objectives of the guidelines are to:
new text end

new text begin (1) reduce greenhouse gas emissions across the project's life cycle by promoting the
design and operation of energy-efficient buildings and the development of renewable energy
sources;
new text end

new text begin (2) provide high-quality indoor environmental conditions to promote occupant health,
well-being, comfort, and productivity;
new text end

new text begin (3) develop processes that ensure that projects are designed and operating as intended
and that project impact can be measured;
new text end

new text begin (4) reduce water use and impacts on water resources;
new text end

new text begin (5) restore soil and water quality, enhance biodiversity, and provide sites supportive of
native species;
new text end

new text begin (6) reduce the embodied environmental impact of building materials; and
new text end

new text begin (7) encourage design that allows building resilience to adapt to and accommodate
projected changes that are reflected in both acute events and chronic trends, including but
not limited to climate-related changes to temperature and precipitation levels.
new text end

new text begin (b) In establishing the guidelines, the commissioners of administration and commerce
must consider the following to meet the objectives in paragraph (a):
new text end

new text begin (1) the health and well-being of occupants;
new text end

new text begin (2) material impacts and sustainability;
new text end

new text begin (3) construction and operating costs;
new text end

new text begin (4) the use of renewable energy sources;
new text end

new text begin (5) diversion of waste from landfills;
new text end

new text begin (6) the impact of climate change;
new text end

new text begin (7) biodiversity and ecological impacts;
new text end

new text begin (8) resilience and adaptability; and
new text end

new text begin (9) any other factors the commissioner deems relevant.
new text end

Subd. 3.

deleted text begin Development of guidelines; deleted text end Applicability.

deleted text begin In developing the guidelines, the
departments shall use an open process, including providing the opportunity for public
comment. deleted text end new text begin Compliance with new text end the guidelines established under this section are mandatory for
all new buildings new text begin and for all major renovations new text end receiving deleted text begin funding deleted text end new text begin an appropriation or a grant
from an appropriation new text end from the bond proceeds fund deleted text begin after January 1, 2004, and for all major
renovations receiving funding from the bond proceeds fund after January 1, 2009 deleted text end .

Subd. 4.

new text begin Commissioner of administration; new text end guideline new text begin administration, oversight, and new text end
revisions.

deleted text begin The commissioners of administration and commerce shall review the guidelines
periodically and as soon as practicable revise the guidelines to incorporate performance
standards developed under section 216B.241, subdivision 9. deleted text end new text begin (a) The commissioner of
administration must review and amend the guidelines periodically to better meet the goals
under subdivision 6. Each guideline section must be reviewed and updated no less than once
every five years. The review must be conducted with the commissioner of commerce and
in consultation with other stakeholders. The commissioner of administration and the
commissioner of commerce must use an open process, including providing the opportunity
for public comment, when reviewing and amending the guidelines.
new text end

new text begin (b) The commissioner of administration is responsible for the following:
new text end

new text begin (1) making applicability determinations on which projects are required by state law to
follow the guidelines upon receipt of an applicability determination request from a project;
new text end

new text begin (2) approving or denying waiver requests for specific guidelines;
new text end

new text begin (3) approving or denying applicability requests for specific guidelines;
new text end

new text begin (4) updating the legislature regarding program outcomes;
new text end

new text begin (5) coordinating with the commissioner of commerce on the energy and atmosphere
guidelines, including coordination with the Sustainable Building 2030 Energy Standards
under section 216B.241, subdivision 9; and
new text end

new text begin (6) contracting with CSBR for assistance with the items in this subdivision and
subdivisions 5 to 9.
new text end

new text begin Subd. 5. new text end

new text begin CSBR; guideline administration and oversight. new text end

new text begin (a) The commissioner of
administration, in consultation with the commissioner of commerce, shall contract with
CSBR to implement the guidelines. At a minimum, CSBR must:
new text end

new text begin (1) maintain and update the guidelines in coordination with the commissioner of
administration and the commissioner of commerce;
new text end

new text begin (2) offer training on an annual basis to state agencies, project team members, and other
entities involved in the design of projects subject to the guidelines on how projects may
meet the guideline requirements;
new text end

new text begin (3) develop procedures for compliance with the guidelines, in accordance with the criteria
under subdivision 7;
new text end

new text begin (4) periodically conduct post-construction performance evaluations on projects to evaluate
the effectiveness of the guidelines in meeting the goals under subdivision 6;
new text end

new text begin (5) determine compliance of project designs with the guidelines;
new text end

new text begin (6) administer a tracking system for all projects subject to the guidelines and for projects
that received state funding for predesign or design that may seek further state funding for
additional project phases subject to the guidelines;
new text end

new text begin (7) develop and track measurable goals for the guidelines in accordance with subdivision
6;
new text end

new text begin (8) offer outreach, training, and technical assistance to state agencies, project team
members, and other entities with responsibility for managing, designing, and overseeing
projects subject to the guidelines;
new text end

new text begin (9) evaluate waiver requests and determinations on project scope and make
recommendations to the commissioner of administration;
new text end

new text begin (10) provide a report on or before December 1 annually to the commissioner of
administration on the following:
new text end

new text begin (i) the current compliance status of all projects subject to the guidelines;
new text end

new text begin (ii) an analysis of the effects of the guidelines on the goals under subdivision 6; and
new text end

new text begin (iii) waivers approved for projects, including both waivers from all of the guidelines
and waivers of individual guidelines; and
new text end

new text begin (11) perform any other duties required by the commissioner of administration to
administer the guidelines.
new text end

new text begin (b) State agencies, project team members, and other entities that are responsible for
managing or designing projects subject to the guidelines must provide any compliance data
requested by CSBR and the commissioner of administration that CSBR and the commissioner
deem necessary to fulfill the duties described under this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Measurable goals. new text end

new text begin CSBR, in collaboration with the commissioner of
administration and the commissioner of commerce, must develop measurable goals for the
guidelines based on the objectives and considerations described in subdivision 2a. The
commissioner of administration must provide final approval of the goals under this
subdivision.
new text end

new text begin Subd. 7. new text end

new text begin Procedures. new text end

new text begin The commissioner of administration must develop procedures for
the administration of the guidelines. The commissioner of administration may delegate
guideline administration responsibilities to state agencies. The procedures under this
subdivision must specify the administrative activities for which state agencies are responsible.
The procedures must include:
new text end

new text begin (1) criteria to identify whether a project is subject to the guidelines;
new text end

new text begin (2) information on project team member roles and guideline administration requirements
for each role;
new text end

new text begin (3) a process to notify projects subject to the guidelines of the guideline requirements;
new text end

new text begin (4) a guideline-related data submission process; and
new text end

new text begin (5) activities and a timeline to monitor project compliance with the guidelines.
new text end

new text begin Subd. 8. new text end

new text begin Guidelines waivers and scope determination. new text end

new text begin (a) The commissioner of
administration, in consultation with the commissioner of commerce and other stakeholders,
must develop a process for reviewing and approving waivers and scope determinations to
the guidelines.
new text end

new text begin (b) A waiver may apply to all of the guidelines or individual guidelines and may identify
an alternative path of meeting the intent of the guidelines.
new text end

new text begin (c) A waiver under this subdivision is only permitted due to technological limitations
or when the intended use of the project conflicts with the guidelines.
new text end

new text begin (d) A waiver request for a project owned by a state agency must be reviewed and
approved by the commissioner of administration. If the waiver request is for a project owned
by the Department of Administration, the waiver request must be approved by the
commissioner of commerce.
new text end

new text begin Subd. 9. new text end

new text begin Report. new text end

new text begin The commissioner of administration must report to the chairs and
ranking minority members of the house of representatives and senate committees with
jurisdiction over capital investment and climate and energy by February 1 of each
odd-numbered year. The report must include:
new text end

new text begin (1) information on the current status of all projects subject to the guidelines from the
previous five years and the projects' compliance with the guidelines;
new text end

new text begin (2) an analysis of the effects of the guidelines on the measurable goals under subdivision
6;
new text end

new text begin (3) progress made toward the recommendations in the report required under Laws 2023,
chapter 71, article 1, section 6, subdivision 4; and
new text end

new text begin (4) any other information the commissioner of administration deems relevant.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 5.

Minnesota Statutes 2022, section 16B.335, subdivision 4, is amended to read:

Subd. 4.

new text begin Sustainable buildings; new text end energy conservation.

A recipient to whom a direct
appropriation is made for a capital improvement project shall ensure that the project complies
with the applicable new text begin sustainable building guidelines and new text end energy conservation standards
contained in law, including sections new text begin 16B.325 and new text end 216C.19 to 216C.20, and rules adopted
thereunder. The recipient may obtain information and technical assistance from the
new text begin commissioner of administration on the sustainable building guidelines and the new text end State Energy
Office in the Department of Commerce on energy conservation and alternative energy
development relating to the planning and construction of the capital improvement project.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
new text end

Sec. 6.

new text begin [16B.336] CAPITAL PROJECT PRESERVATION ACCOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Adjusted net tax capacity" means, as of any date, the net tax capacity of all taxable
property most recently determined by the commissioner of revenue in accordance with
section 273.1325.
new text end

new text begin (c) "Adjusted net tax capacity per capita" means a political subdivision's adjusted net
tax capacity divided by the political subdivision's population.
new text end

new text begin (d) "Capital project grant agreement" means a grant agreement for a capital project
subject to section 16A.642, 16A.695, or 16A.86, and funded in whole or in part by a direct
appropriation of state money.
new text end

new text begin (e) "Commissioner" means the commissioner of administration.
new text end

new text begin (f) "Population" has the meaning under section 477A.011, subdivision 3.
new text end

new text begin (g) "Preservation" means improvements and betterments of a capital nature consistent
with those described in section 16B.307, subdivision 1, paragraph (d).
new text end

new text begin Subd. 2. new text end

new text begin Preservation account establishment. new text end

new text begin (a) A grantee that receives a direct
appropriation of state money for a capital project subject to section 16A.642, 16A.695, or
16A.86 must establish a capital project preservation fund for major rehabilitation, expansion,
replacement, or preservation of the capital project once the project has reached its useful
life, or another use as permitted under this section. Money must remain in the account for
the useful life of the capital project, as determined by the grant agreement with the granting
state agency, unless use of the fund is approved in writing by the granting state agency for
major rehabilitation, expansion, replacement, or preservation of the capital project funded
with state money, or to address a capital project for a different capital asset owned by the
grantee.
new text end

new text begin (b) A grantee must adopt a capital project preservation policy that specifies the following
for the capital project preservation fund:
new text end

new text begin (1) the risks to be mitigated or managed by the fund;
new text end

new text begin (2) the intended use of the preservation fund, including but not limited to how the fund
will be used for major rehabilitation, expansion, replacement, or preservation of the capital
project; and
new text end

new text begin (3) criteria for the use of the fund to address other capital improvement needs of the
grantee, including safety and security, maintenance and utility costs, availability of repair
parts and materials, sustainability, and any other criteria the grantee deems relevant.
new text end

new text begin (c) For the purposes of this section, "grantee" does not include a state agency, state
official, the Board of Regents of the University of Minnesota, or the Board of Trustees of
the Minnesota State Colleges and Universities.
new text end

new text begin Subd. 3. new text end

new text begin Minimum deposits; fund balance. new text end

new text begin (a) The commissioner must determine the
annual minimum deposit amounts into capital project preservation funds by capital project
type. The commissioner must take into account depreciation, construction cost inflation,
the useful life of the capital project, and other relevant factors when determining the minimum
deposit amounts.
new text end

new text begin (b) A grantee must not be required to maintain a capital project preservation fund balance
greater than the amount of the direct appropriation of state money for the capital project.
new text end

new text begin Subd. 4. new text end

new text begin Account auditing. new text end

new text begin The state auditor may audit capital project preservation
accounts as part of the regular audits of local governments.
new text end

new text begin Subd. 5. new text end

new text begin Exceptions. new text end

new text begin (a) Capital projects that already require a preservation fund under
any other law, rule, or ordinance, are exempt from the requirements under this section, so
long as the deposits into the preservation fund are at least as large as the minimum deposits
established by the commissioner under subdivision 3.
new text end

new text begin (b) This section does not apply to a grantee that assesses the condition and replacement
value of its capital assets and future capital projects, including those subject to section
16A.642, 16A.695, or 16A.86, through an annual capital improvement plan process and
publishes an annual capital improvement plan document that forecasts at least ten years of
known capital projects for use in budget forecasting to enhance long-term financial stability.
new text end

new text begin (c) This section does not apply to a political subdivision grantee that, in the year the
capital project grant agreement is entered into, has an adjusted net tax capacity per capita
that is less than the median adjusted net tax capacity per capita of all political subdivisions
that are the same type of political subdivision as the grantee.
new text end

new text begin Subd. 6. new text end

new text begin Penalty. new text end

new text begin Failure of a grantee to comply with the requirements of this section
shall result in the granting state agency assessing a penalty fee to the grantee equal to one
percent of the appropriation of state money for the capital project for each year of
noncompliance. Penalty fees shall be remitted by the granting state agency to the
commissioner of management and budget for deposit into the general fund. Failure of a
grantee to comply with the requirements of this section shall not constitute an event of
default under a capital project grant agreement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for capital projects funded through state
capital project grant agreements entered into on or after July 1, 2024.
new text end

Sec. 7.

Minnesota Statutes 2023 Supplement, section 174.38, subdivision 3, is amended
to read:

Subd. 3.

Active transportation accounts.

(a) An active transportation account is
established in the special revenue fund. The account consists of funds provided by law and
any other money donated, allotted, transferred, or otherwise provided to the account. Money
in the account is annually appropriated to the commissioner and must be expended only on
projects that receive financial assistance under this section.

(b) An active transportation account is established in the bond proceeds fund. The account
consists of state bond proceeds appropriated to the commissioner. Money in the account
may only be expended on bond-eligible costs of a project receiving financial assistance as
provided under this section. Money in the account may only be expended on a project that
is publicly owned.

deleted text begin (c) An active transportation account is established in the general fund. The account
consists of money as provided by law and any other money donated, allotted, transferred,
or otherwise provided to the account. Money in the account may only be expended on a
project receiving financial assistance as provided under this section.
deleted text end

Sec. 8.

new text begin [473.355] COMMUNITY TREE-PLANTING GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Metropolitan area" has the meaning given under section 473.121, subdivision 2.
new text end

new text begin (c) "Shade tree" means a woody perennial grown primarily for aesthetic or environmental
purposes with minimal to residual timber value.
new text end

new text begin (d) "Supplemental demographic index" means an index in the Environmental Justice
Screening and Mapping Tool developed by the United States Environmental Protection
Agency that is based on socioeconomic indicators, including low income, unemployment,
less than high school education, limited English speaking, and low life expectancy.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin (a) The Metropolitan Council must establish a grant program to provide
grants to cities, counties, townships, Tribal governments, owners of private property in the
metropolitan area, and implementing agencies for the following purposes:
new text end

new text begin (1) removing and planting shade trees on public or Tribal land to provide environmental
benefits;
new text end

new text begin (2) replacing trees lost to forest pests, disease, or storms; or
new text end

new text begin (3) establishing a more diverse community forest better able to withstand disease and
forest pests.
new text end

new text begin (b) Any tree planted with money granted under this section must be a climate-adapted
species to Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Priority. new text end

new text begin (a) Priority for grants awarded under this section must be given to:
new text end

new text begin (1) projects removing and replacing ash trees that pose significant public safety concerns;
and
new text end

new text begin (2) projects located in a census block group with a supplemental demographic index
score in the 70th percentile or higher within the state of Minnesota.
new text end

new text begin (b) The Metropolitan Council may not prioritize projects based on criteria other than
the criteria established under paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Eligible projects. new text end

new text begin (a) The proceeds of state general obligation bonds may only
be expended for grants to cities, counties, townships, and implementing agencies.
new text end

new text begin (b) Appropriations from the general fund may be expended for grants to Tribal
governments, cities, counties, townships, owners of private property in the metropolitan
area, and implementing agencies.
new text end

Sec. 9.

Laws 2023, chapter 71, article 1, section 6, subdivision 4, is amended to read:

Subd. 4. Sustainable Building Guidelines; Recommendations and Report

304,000

To develop recommendations for updating
goals, measuring project performance in
meeting the goals, applicability, compliance,
waivers, outreach, and administration of the
sustainable building guidelines under
Minnesota Statutes, section 16B.325, in
collaboration with the commissioner of
commerce and the Center for Sustainable
Building Research at the University of
Minnesota. The commissioner of
administration may contract with the
commissioner of commerce and the Center
for Sustainable Building Research at the
University of Minnesota for assistance in
developing the recommendations, including
obtaining input from public owners, nonprofit
owners, design professionals, and other
stakeholders. The commissioner of
administration must provide a report of
findings and recommendations to the chairs
and ranking minority members of the
legislative committees with jurisdiction over
capital investment, energy finance and policy,
and environment finance and policy on or
before October 15, 2023. new text begin Upon completion of
development of the recommendations, any
remaining funds may be utilized to begin
implementation of the recommendations.
new text end

Sec. 10. new text begin CAPITOL MALL DESIGN FRAMEWORK UPDATE; MATCHING FUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Capitol Mall Design Framework update" means the Capitol Mall Design Framework
update required by Laws 2023, chapter 62, article 2, section 124.
new text end

new text begin (c) "Nonstate funds" means money secured from private sources, including individuals
and businesses, toward the Capitol Mall Design Framework update.
new text end

new text begin Subd. 2. new text end

new text begin Capitol Mall Design Framework; use of nonstate funds. new text end

new text begin (a) Nonstate funds
must be used to predesign, design, construct, furnish, and equip improvements and
betterments of a capital nature consistent with the Capitol Mall Design Framework update.
new text end

new text begin (b) The commissioner of administration shall coordinate the expenditure of nonstate
funds toward the Capitol Mall Design Framework update improvements. Any unspent
nonstate funds may be used by the commissioner of administration for improvements and
betterments of a capital nature consistent with the Capitol Mall Design Framework update.
new text end

Sec. 11. new text begin CAPITOL MALL DESIGN FRAMEWORK IMPLEMENTATION.
new text end

new text begin Notwithstanding Laws 2023, chapter 62, article 1, section 11, subdivision 2, the
appropriation to implement the updated Capitol Mall Design Framework is available until
June 30, 2025.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Laws 2023, chapter 53, article 17, section 2, new text end new text begin is repealed.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

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

APPENDIX

Repealed Minnesota Session Laws: H5162-2

Laws 2023, chapter 53, article 17, section 2

Sec. 2. new text begin CAPITOL AREA COMMUNITY VITALITY ACCOUNT. new text end

new text begin Subdivision 1. new text end

new text begin Account established; appropriation. new text end

new text begin (a) A Capitol Area community vitality account is established in the special revenue fund. Money in the account is appropriated to the commissioner of administration to improve the livability, economic health, and safety of communities within the Capitol Area, provided that no funds may be expended until a detailed program and oversight plan to govern their use, in accordance with the spending recommendations of the Capitol Area Community Vitality Task Force as approved by the Capitol Area Architectural and Planning Board, has been further approved by law. new text end

new text begin (b) As used in this section, "Capitol Area" includes that part of the city of St. Paul within the boundaries described in Minnesota Statutes, section 15B.02. new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin $5,000,000 in fiscal year 2024 is transferred from the general fund to the Capitol Area community vitality account. new text end