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Minnesota Legislature

Office of the Revisor of Statutes

HF 886

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 2nd Engrossment

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A bill for an act
relating to capital improvements; authorizing spending to acquire and better
public land and buildings and other improvements of a capital nature with
certain conditions; establishing new programs and modifying existing programs;
authorizing the sale of state bonds; canceling and modifying previous
appropriations; appropriating money; amending Minnesota Statutes 2006,
sections 85.013, by adding a subdivision; 116R.01, subdivision 6; 116R.02,
subdivisions 1, 2, 4, 5; 116R.03; 116R.05, subdivision 2; 116R.11, subdivision 1;
116R.12, by adding a subdivision; 272.01, subdivision 2; 290.06, subdivision
24; 297A.71, subdivision 10; 360.013, subdivision 39; 360.032, subdivision 1;
360.038, subdivision 4; Laws 2005, chapter 20, article 1, sections 7, subdivisions
2, 21; 17; 20, subdivision 3; 21, subdivision 2; 23, subdivisions 8, 16; Laws
2005, chapter 156, article 2, section 46; Laws 2006, chapter 258, sections 4,
subdivision 4; 7, subdivisions 3, 7, 11, 22; 16, subdivision 4; 21, subdivisions
6, 15; 23, subdivision 3; repealing Minnesota Statutes 2006, sections 85.012,
subdivision 24b; 116R.02, subdivisions 3, 6, 7, 9; 116R.16; Laws 2006, chapter
258, section 14, subdivision 6.

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

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

new text begin The sums shown in the column under "appropriations" are appropriated from the
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 the capital nature, or as
authorized by article XI, section 5, paragraphs (b) to (j), or article XIV. Unless otherwise
specified, the appropriations in this article are available until the project is completed or
abandoned subject to Minnesota Statutes, section 16A.642.
new text end

new text begin SUMMARY
new text end
new text begin University of Minnesota
new text end
new text begin $
new text end
new text begin 36,400,000
new text end
new text begin Minnesota State Colleges and Universities
new text end
new text begin 34,520,000
new text end
new text begin Education
new text end
new text begin 30,240,000
new text end
new text begin Natural Resources
new text end
new text begin 4,684,000
new text end
new text begin Pollution Control Agency
new text end
new text begin 2,500,000
new text end
new text begin Board of Water and Soil Resources
new text end
new text begin 8,165,000
new text end
new text begin Zoological Garden
new text end
new text begin 1,526,000
new text end
new text begin Administration
new text end
new text begin 15,240,000
new text end
new text begin Public Safety
new text end
new text begin 7,550,000
new text end
new text begin Transportation
new text end
new text begin 53,673,000
new text end
new text begin Metropolitan Council
new text end
new text begin 51,150,000
new text end
new text begin Human Services
new text end
new text begin 150,000
new text end
new text begin Corrections
new text end
new text begin 6,117,000
new text end
new text begin Employment and Economic Development
new text end
new text begin 82,150,000
new text end
new text begin Bond Sale Expenses
new text end
new text begin 167,000
new text end
new text begin Cancellations
new text end
new text begin (5,432,000)
new text end
new text begin Lewis and Clark
new text end
new text begin 5,282,000
new text end
new text begin TOTAL
new text end
new text begin $
new text end
new text begin 334,082,000
new text end
new text begin Bond Proceeds Fund (General Fund Debt Service)
new text end
new text begin 110,438,000
new text end
new text begin Bond Proceeds Fund (User Financed Debt Service)
new text end
new text begin 1,267,000
new text end
new text begin State Transportation Fund
new text end
new text begin 30,000,000
new text end
new text begin Trunk Highway Fund Bond Proceeds Account
new text end
new text begin 33,420,000
new text end
new text begin General Fund
new text end
new text begin 164,389,000
new text end
new text begin Bond Proceeds Cancellations
new text end
new text begin (5,432,000)
new text end
new text begin APPROPRIATIONS
new text end

Sec. 2. new text beginUNIVERSITY OF MINNESOTA
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 36,400,000
new text end

new text begin To the Board of Regents of the University
of Minnesota for the purposes specified in
this section.
new text end

new text begin Subd. 2. new text end

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

new text begin 22,000,000
new text end

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

new text begin Subd. 3. new text end

new text begin 717 Delaware
new text end

new text begin 14,400,000
new text end

new text begin To renovate the building at 717 Delaware
for use as a biomedical science research
facility. This appropriation is intended to
cover approximately 80 percent of the cost
of the project. The remaining costs must be
paid from university sources.
new text end

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 34,520,000
new text end

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

new text begin Subd. 2. new text end

new text begin Higher Education Asset Preservation
And Replacement
new text end

new text begin 30,720,000
new text end

new text begin This appropriation is for the purposes
specified in Minnesota Statutes, section
135A.046. Of this, $720,000 is for HVAC
replacement and asbestos removal at
the Brooklyn Park campus of Hennepin
Technical College.
new text end

new text begin Subd. 3. new text end

new text begin Bemidji State University
new text end

new text begin 2,000,000
new text end

new text begin To acquire property adjacent to Bemidji State
University.
new text end

new text begin Subd. 4. new text end

new text begin Fond du Lac Tribal and Community
College
new text end

new text begin 1,800,000
new text end

new text begin To acquire property adjacent to the Fond du
Lac Tribal and Community College.
new text end

new text begin Subd. 5. new text end

new text begin Debt Service
new text end

new text begin (a) The board shall pay the debt service on
one-third of the principal amount of state
bonds sold to finance projects authorized by
this section, except for higher education asset
preservation and replacement, except that,
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.
After each sale of general obligation bonds,
the commissioner of finance shall notify the
board of the amounts assessed for each year
for the life of the bonds.
new text end

new text begin (b) The commissioner 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 finance by December 1 each
year. If the board fails to make a payment
when due, the commissioner of finance
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 finance
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.
new text end

new text begin Subd. 6. new text end

new text begin Unspent Appropriations
new text end

new text begin (a) Upon substantial completion of a project
authorized in this section and after written
notice to the commissioner of finance, the
Board of Trustees 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 and senate committees with
jurisdiction over capital investments and
higher education finance, and to the chairs of
the house Ways and Means Committee and
the senate Finance Committee, on how the
remaining money has been allocated or spent.
new text end

new text begin (b) The unspent portion of an appropriation
for a project in this section that is complete,
is available for higher education asset
preservation and replacement under this
subdivision, at the same campus as the
project for which the original appropriation
was made and the debt service requirement
under subdivision 5 is reduced accordingly.
Minnesota Statutes, section 16A.642, applies
from the date of the original appropriation to
the unspent amount transferred.
new text end

Sec. 4. new text beginMINNESOTA DEPARTMENT OF
EDUCATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 30,240,000
new text end

new text begin To the commissioner of education for the
purposes specified in this section. The
appropriations in this section are from the
general fund.
new text end

new text begin Subd. 2. new text end

new text begin Independent School District No. 11,
Anoka-Hennepin
new text end

new text begin 240,000
new text end

new text begin For a grant to Independent School District
No. 11, Anoka-Hennepin, to acquire land
adjacent to Riverview Elementary School
and for improvements of a capital nature
to develop and restore wetland and native
prairie habitat on the land.
new text end

new text begin Subd. 3. new text end

new text begin Independent School District No. 38,
Red Lake
new text end

new text begin 30,000,000
new text end

new text begin For a grant to Independent School District
No. 38, Red Lake, to design, construct,
furnish, and equip renovation of existing
facilities and construction of new facilities.
The project includes renovation of,
and an addition to, the high school and
middle school to provide classrooms and
related facilities for technology education,
vocational education, physical education,
and community education, and to provide
for food services and administrative offices.
The heating plant and piping for the high
school and middle school will be upgraded
and the motor vehicle fuel and propane tanks
may be relocated. The project may include
renovation of the Red Lake Elementary
School to add classrooms and to link it
to the Early Childhood Learning Center.
The project may include renovation of the
Ponemah Elementary School to add a media
center and Head Start center, add parking,
improve the bus drop-off, and expand
playground facilities. The commissioner
and Independent School District No. 38,
Red Lake, shall report to the legislature by
January 10, 2008, on the progress of the
project funded by the grant. The unexpended
balance of the appropriation in Laws 2005,
chapter 20, article 1, section 5, subdivision
2, as amended by Laws 2006, chapter 258,
section 42, to design, construct, renovate,
furnish, equip, and make health and safety
capital improvements to school facilities may
be added to this appropriation.
new text end

Sec. 5. new text beginNATURAL RESOURCES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 4,684,000
new text end

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

new text begin The appropriations in this section are from
the general fund.
new text end

new text begin The appropriations in this section are subject
to the requirements of the natural resources
capital improvement program set forth in
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.
new text end

new text begin Subd. 2. new text end

new text begin Stillwater Flood Control Phase III
new text end

new text begin 200,000
new text end

new text begin For a grant under Minnesota Statutes,
section 103F.161, to the city of Stillwater to
predesign, design, and begin construction
of Phase III of the Stillwater flood control
project, including flood control structures
and pumping stations. This appropriation
is not available until the commissioner has
determined that at least $2,000,000 has been
committed from nonstate sources.
new text end

new text begin Subd. 3. new text end

new text begin Canisteo Mine
new text end

new text begin 1,300,000
new text end

new text begin For a grant to the Western Mesabi Mine
Planning Board to construct siphons, a
conveyance system, and other improvements
to accommodate water level and outflow
control of the water level in the Canisteo
mine pit in Itasca County. This appropriation
does not require a local match. The
commissioner of natural resources shall be
responsible to maintain the improvements
after completion of the project.
new text end

new text begin Subd. 4. new text end

new text begin Lake Zumbro Restoration
new text end

new text begin 350,000
new text end

new text begin For an agreement with Olmsted and
Wabasha Counties to design and engineer
the restoration of Lake Zumbro. This is a
onetime appropriation and is available until
June 30, 2009.
new text end

new text begin Subd. 5. new text end

new text begin Red River Digital Elevation Model
new text end

new text begin 600,000
new text end

new text begin To develop and implement a high-resolution
digital elevation model for the Red River
basin.
new text end

new text begin Subd. 6. new text end

new text begin Greenleaf Lake State Recreation Area
new text end new text begin new text end

new text begin 500,000
new text end

new text begin To acquire from willing sellers land
within the boundaries of Greenleaf Lake
State Recreation Area, established under
Minnesota Statutes, section 85.013,
subdivision 11b.
new text end

new text begin Subd. 7. new text end

new text begin Fort Snelling Upper Bluff
new text end

new text begin 500,000
new text end

new text begin For a grant to Hennepin County to conduct
emergency building stabilization at Fort
Snelling Upper Bluff. This appropriation
is not available until the commissioner of
finance has determined that Hennepin County
has entered into appropriate agreements to
use sentence-to-serve labor for the project
that will train sentence-to-serve laborers in
the skills needed for the work.
new text end

new text begin Subd. 8. new text end

new text begin State Trail Acquisition and
Development
new text end

new text begin 1,234,000
new text end

new text begin To acquire land for and to construct and
renovate state trails under Minnesota
Statutes, section 85.015.
new text end

new text begin $125,000 is for the Cuyuna Lakes Trail, to
develop a natural surface multiuse trail in the
Cuyuna Country State Recreation Area.
new text end

new text begin $650,000 is for the Gateway Trail, to replace
an at-grade crossing of the Gateway Trail at
Highway 120 with a tunnel.
new text end

new text begin $209,000 is for the Luce Line Trail, to
acquire land for, develop, and rehabilitate the
trail.
new text end

new text begin $250,000 is for acquisition of the Browns
Creek segment of the Willard Munger Trail
System, currently the right-of-way for the
Minnesota Zephyr.
new text end

Sec. 6. new text beginPOLLUTION CONTROL AGENCY
new text end

new text begin $
new text end
new text begin 2,500,000
new text end

new text begin Closed landfill program
new text end

new text begin This appropriation is from the general fund
for a grant to the city of Albert Lea to
construct remedial systems at the Albert
Lea landfill. This includes relocating and
incorporating waste from the former Albert
Lea dump owned by the city of Albert
Lea under Minnesota Statutes, section
115B.403, which action may be taken by the
Pollution Control Agency notwithstanding
the provisions of Minnesota Statutes, section
115B.403, paragraphs (a) and (b).
new text end

new text begin The appropriation in this section is added to
the amounts for the city of Albert Lea landfill
funding in Laws 2006, chapter 258, section
8, subdivision 2.
new text end

Sec. 7. new text beginBOARD OF WATER AND SOIL
RESOURCES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 8,165,000
new text end

new text begin To the Board of Water and Soil Resources
for the purposes specified in this section. The
appropriations in this section are from the
general fund.
new text end

new text begin Subd. 2. new text end

new text begin RIM Conservation Reserve
new text end

new text begin 8,000,000
new text end

new text begin To acquire conservation easements from
landowners on marginal lands and to
construct conservation measures on acquired
land in order to protect soil and water quality
and to support fish and wildlife habitat as
provided in Minnesota Statutes, sections
103F.501 to 103F.535. Of this, $1,200,000
is to implement the program. The board
must submit to the legislative committees
with jurisdiction over environment finance
and capital investment an interim report on
this program by October 1, 2007, and a final
report by February 1, 2008.
new text end

new text begin Subd. 3. new text end

new text begin Lake Titlow Watershed Improvements
new text end

new text begin 165,000
new text end

new text begin $150,000 is for a grant to the city of Gaylord
to predesign and design holding ponds
upstream from Lake Titlow. The design
must include the best location for the ponds,
an estimate of the cost of land acquisition
or easements, construction costs of the
holding ponds, and the estimated expense
of maintaining the structures and who will
be responsible for the expense. The city
must also coordinate with state and county
conservation officials to ensure correct
conservation practices and improvements in
the watershed district.
new text end

new text begin $15,000 is for a grant to the city of Gaylord to
purchase open intake tile covers or cones that
limit soil erosion and chemicals from entering
the water ditch systems and waterways of
the Lake Titlow watershed. These water
control devices must be provided at low
cost to landowners to promote conservation
improvement and clean up groundwater.
Volunteers from the city of Gaylord and local
clubs and high school students must be used
to install the water control devices at no cost
to the landowner.
new text end

new text begin The criteria, limitations, and assessment
requirements in Minnesota Statutes, sections
103D.701, 103D.705, and 103D.901 do not
apply to this subdivision.
new text end

Sec. 8. new text beginMINNESOTA ZOOLOGICAL
GARDEN
new text end

new text begin $
new text end
new text begin 1,526,000
new text end

new text begin Inflow and infiltration emergency abatement
new text end

new text begin This appropriation is from the general fund to
the Minnesota Zoological Garden to design
and construct improvements to its water
management system. The project must be
designed to address inflow and infiltration
problems associated with the Minnesota
Zoo's water discharge flow to the city of
Eagan.
new text end

Sec. 9. new text beginADMINISTRATION
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 15,240,000
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 Exterior Repair of Transportation
Building
new text end

new text begin 12,715,000
new text end

new text begin This appropriation is from the bond proceeds
account in the trunk highway fund to repair
and renovate the exterior of the Department
of Transportation Building at 395 John
Ireland Boulevard in St. Paul.
new text end

new text begin Subd. 3. new text end

new text begin Property Acquisition
new text end

new text begin 2,325,000
new text end

new text begin This appropriation is from the general fund
to acquire property at 639 Jackson Street in
St. Paul adjacent to the Harold E. Stassen
Building, to demolish existing structures
on the property, and to develop temporary
parking on the site and adjacent areas.
new text end

new text begin Subd. 4. new text end

new text begin Veterans Memorial, Eden Prairie
new text end

new text begin 200,000
new text end

new text begin This appropriation is from the general fund
for a grant to the city of Eden Prairie to
design and construct improvements of a
capital nature for a veterans memorial in
Purgatory Creek Recreation Area in the city
of Eden Prairie.
new text end

Sec. 10. new text beginPUBLIC SAFETY
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 7,550,000
new text end

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

new text begin The appropriations in this section are from
the general fund.
new text end

new text begin Subd. 2. new text end

new text begin Anoka County Forensic Crime
Laboratory
new text end

new text begin 2,500,000
new text end

new text begin Notwithstanding any law to the contrary,
this appropriation is for a grant to Anoka
County to design, construct, furnish, and
equip a regional forensic crime laboratory,
for the use of Anoka, Sherburne, and Wright
Counties, to be located in Anoka County.
new text end

new text begin This appropriation is not available until the
commissioner has determined that at least
$7,500,000 has been committed or will be
committed from nonstate sources to the
forensic crime laboratory and/or a public
safety facility that will contain the forensic
crime laboratory.
new text end

new text begin Subd. 3. new text end

new text begin Gonvick Public Safety Training
Center
new text end

new text begin 50,000
new text end

new text begin Notwithstanding any law to the contrary, for
a grant to the city of Gonvick to predesign a
regional emergency training administration
center in Gonvick.
new text end

new text begin This appropriation is not available until the
commissioner has determined that at least
an equal amount has been committed from
nonstate sources.
new text end

new text begin Subd. 4. new text end

new text begin Scott County Public Safety Training
Center
new text end

new text begin 1,500,000
new text end

new text begin Notwithstanding any law to the contrary, for
a grant to Scott County to design, construct,
furnish, and equip a regional public safety
training center in Scott County.
new text end

new text begin This appropriation is not available until the
commissioner has determined that at least
an equal amount has been committed from
nonstate sources.
new text end

new text begin Subd. 5. new text end

new text begin Southeastern Minnesota Regional
Public Safety Training Center
new text end

new text begin 1,500,000
new text end

new text begin Notwithstanding any law to the contrary,
to design, construct, furnish, and equip the
Southeastern Minnesota Regional Public
Safety Training Center in Rochester. The
facility must include a live burn training
simulator, a driving range, and a weapons
training facility.
new text end

new text begin This appropriation is not available until the
commissioner has determined that at least
an equal amount has been committed from
nonstate sources.
new text end

new text begin Subd. 6. new text end

new text begin Browns Valley Flood Relief
new text end

new text begin 2,000,000
new text end

new text begin For a grant to the city of Browns Valley to be
used to mitigate damage to public and private
property caused by the flooding of March
2007. Grant money may be used to repair,
buy, or replace private property damaged by
flooding.
new text end

Sec. 11. new text beginTRANSPORTATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 53,673,000
new text end

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

new text begin Subd. 2. new text end

new text begin Local Bridge Replacement and
Rehabilitation
new text end

new text begin 30,000,000
new text end

new text begin This appropriation is from the bond proceeds
account in the state transportation fund as
provided in Minnesota Statutes, section
174.50, to match federal money and to
replace or rehabilitate local deficient bridges.
new text end

new text begin Political subdivisions may use grants made
under this section to construct or reconstruct
bridges, including:
new text end

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

new text begin (2) paying the costs of preliminary
engineering and environmental studies
authorized under Minnesota Statutes, section
174.50, subdivision 6a;
new text end

new text begin (3) paying the costs to abandon an existing
bridge that is deficient and in need of
replacement, but where no replacement will
be made; and
new text end

new text begin (4) paying the costs to construct a road
or street to facilitate the abandonment
of an existing bridge determined by
the commissioner to be deficient, if the
commissioner determines that construction
of the road or street is more cost efficient
than the replacement of the existing bridge.
new text end

new text begin Subd. 3. new text end

new text begin Port Development Assistance
new text end

new text begin 500,000
new text end

new text begin This appropriation is from the general fund
for grants under Minnesota Statutes, chapter
457A. Any improvements made with the
proceeds of these grants must be publicly
owned.
new text end

new text begin Subd. 4. new text end

new text begin Mankato District Headquarters
new text end

new text begin 20,673,000
new text end

new text begin This appropriation is from the bond proceeds
account in the trunk highway fund to
design, construct, furnish, and equip a
new Department of Transportation district
headquarters facility in Mankato.
new text end

new text begin Subd. 5. new text end

new text begin High-Speed Rail Line
new text end

new text begin 2,000,000
new text end

new text begin This appropriation is from the general
fund for the state's share of a high-speed
rail line connecting Chicago, LaCrescent,
Winona, Red Wing, and the Union Depot
Concourse Multimodal Transit Hub, located
in downtown St. Paul in the area south
of Kellogg Boulevard and east of Jackson
Street. No part of this appropriation
may be spent to acquire or better capital
improvements that are located outside the
state of Minnesota, that may be used from
time to time outside the state of Minnesota,
or that are part of a rail corridor that is
not designated by the Midwest Interstate
Passenger Rail Compact.
new text end

new text begin Subd. 6. new text end

new text begin Commuter Rail Extension
new text end

new text begin 250,000
new text end

new text begin This appropriation is from the general
fund for a grant to the Northstar Corridor
Development Authority to fund advanced
preliminary engineering, updated
environmental documentation, property
appraisals, and negotiations with the railroad
to extend commuter rail service on the
Burlington Northern Santa Fe rail line
between Big Lake and Rice.
new text end

new text begin Subd. 7. new text end

new text begin North Shore Express Intercity Rail
Initiative
new text end

new text begin 250,000
new text end

new text begin This appropriation is from the general
fund for a grant to St. Louis and Lake
County Regional Rail Authority for
railroad acquisition and track restoration,
environmental impact studies, advanced
corridor planning, preliminary design and
preliminary engineering, station design,
analysis of railroad capacity, and easement
costs for intercity and passenger rail service
between the city of Duluth and the cities of
Minneapolis and St. Paul.
new text end

Sec. 12. new text beginMETROPOLITAN COUNCIL
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 51,150,000
new text end

new text begin To the Metropolitan Council for the purposes
specified in this section. The appropriations
in this section are from the general fund,
unless another fund is named.
new text end

new text begin Subd. 2. new text end

new text begin Central Corridor Transit Way
new text end

new text begin 40,000,000
new text end

new text begin This appropriation is from the bond proceeds
fund for preliminary engineering, preliminary
design, final design, and construction of
the central corridor transit way between
downtown Minneapolis and downtown St.
Paul, terminating in downtown St. Paul at
the Union Depot.
new text end

new text begin This appropriation may not be spent for
capital improvements within a trunk highway
right-of-way.
new text end

new text begin District heating and district cooling nonprofit
corporations organized under Minnesota
Statutes, chapter 317A, that are exempt
organizations under section 501(c)(3) of
the United States Internal Revenue Code
that are public right-of-way users under
Minnesota Rules, chapter 7819, are eligible
to receive grants and federal money for
costs of relocating facilities from public
rights-of-way to prevent interference with
public light rail projects.
new text end

new text begin Subd. 3. new text end

new text begin South St. Paul - Span Arch Bridge
new text end

new text begin 600,000
new text end

new text begin For a grant to the city of South St. Paul
to design and construct a span arch bridge
under 19th Avenue in South St. Paul for
connection with the Dakota County North
Urban Regional Trail.
new text end

new text begin Subd. 4. new text end

new text begin Union Depot
new text end

new text begin 3,000,000
new text end

new text begin $2,500,000 of this appropriation is from the
general fund.
new text end

new text begin $500,000 of this appropriation is from the
bond proceeds fund.
new text end

new text begin For a grant to the Ramsey County Regional
Railroad Authority to acquire land and
structures, to renovate structures, and for
design, engineering, and environmental
work to revitalize Union Depot for use as a
multimodal transit center in St. Paul.
new text end

new text begin Subd. 5. new text end

new text begin Rush Line Corridor Transit Way
new text end

new text begin 500,000
new text end

new text begin For a grant to the Ramsey County Regional
Railroad Authority to acquire land for,
design, and construct park-and-ride or
park-and-pool lots located along the Rush
Line Corridor along I-35E/I-35W and
Highway 61 from the Union Depot in
downtown St. Paul to Hinckley.
new text end

new text begin Subd. 6. new text end

new text begin Red Rock Corridor Transit Way
new text end

new text begin 500,000
new text end

new text begin To design, construct, and furnish
park-and-ride lots for the Red Rock
Corridor transit way between Hastings and
Minneapolis via St. Paul, and any extension
between Hastings and Red Wing.
new text end

new text begin Subd. 7. new text end

new text begin Southwest Corridor Transit Way
new text end

new text begin 500,000
new text end

new text begin For a grant to the Hennepin County
Regional Rail Authority to prepare a draft
environmental impact statement (DEIS)
and for preliminary engineering for the
Southwest Corridor Transit Way, from the
Hiawatha light rail in downtown Minneapolis
to the vicinity of the Southwest Station
transit hub in Eden Prairie.
new text end

new text begin Subd. 8. new text end

new text begin Transit Master Plan
new text end

new text begin 250,000
new text end

new text begin (a) The Metropolitan Council, in consultation
with the regional railroad authorities in the
metropolitan area, must complete a revision
of the regional master plan for transit. The
plan must identify recommended transit
investments in the metropolitan area through
2030. The revised plan must be completed
for presentation to the legislature by February
20, 2008. The plan must include an analysis
and comparison of transit way corridors
and the potential for bus and busway, light
rail transit, and commuter rail development
within the corridors based on current and
projected:
new text end

new text begin (1) population and population density;
new text end

new text begin (2) employment concentrations and job
density;
new text end

new text begin (3) transit dependent segments of the
population;
new text end

new text begin (4) ridership;
new text end

new text begin (5) capital and operating costs:
new text end

new text begin (6) land use;
new text end

new text begin (7) right-of-way availability; and
new text end

new text begin (8) adequacy of existing transportation
options within the corridor.
new text end

new text begin The council and regional rail authorities must
jointly select the corridors to be included in
the analysis.
new text end

new text begin (b) The plan must include, but is not limited
to, an analysis of the following corridors:
new text end

new text begin (1) the I-94 corridor, beginning at the
Union Depot Concourse Multimodal
Transit Hub, located in downtown St. Paul
in the area south of Kellogg Boulevard
and east of Jackson Street, extending
eastward through Washington County
to the Minnesota-Wisconsin border, and
terminating in St. Croix County, Wisconsin;
and
new text end

new text begin (2) the I-494 corridor, on or near
marked Interstate Highway 494, from
Minneapolis-St. Paul International Airport to
a transit station on the proposed Southwest
Corridor transit way.
new text end

new text begin Subd. 9. new text end

new text begin Metropolitan Regional Parks Capital
Improvements
new text end

new text begin 5,800,000
new text end
new text begin Saint Paul - National Great River Park
new text end

new text begin $3,800,000 is for a grant to the city of St.
Paul to design, construct, furnish, and equip
river park development and redevelopment
infrastructure in National Great River Park
along the Mississippi River in St. Paul.
new text end

new text begin Fridley - Springbrook Nature Center
new text end

new text begin $2,000,000 is from the general fund
for a grant to the city of Fridley to
predesign, design, construct, and equip
the redevelopment and expansion of
the Springbrook Nature Center. This
appropriation is not available until the
commissioner has determined that at least
an equal amount has been committed from
nonstate sources.
new text end

Sec. 13. new text beginHUMAN SERVICES
new text end

new text begin $
new text end
new text begin 150,000
new text end

new text begin West central secured treatment facility
new text end

new text begin This appropriation is from the general fund
to the commissioner of human services
for a grant to Pope County to predesign
a multicounty regional secured treatment
facility in west central Minnesota. The
commissioner shall prepare a report to the
legislature assessing the need for and the
viability of the facility and the benefits
derived from a coordinated multicounty,
regional approach to local chemical
dependency needs in west central Minnesota.
The report is due to the legislature by
February 1, 2008.
new text end

Sec. 14. new text beginCORRECTIONS
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 6,117,000
new text end

new text begin To the commissioner of administration for
the purposes specified in this section. The
appropriations in this section are from the
general fund.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota Correctional Facility - Oak
Park Heights
new text end

new text begin (a) Perimeter system renovation
new text end
new text begin 3,875,000
new text end

new text begin To renovate the perimeter system at the
Oak Park Heights Correctional Facility
by replacing the security fence system for
the inside wall of the main prison yard
and exterior fence, replacing the perimeter
lighting system and the security razor
ribbon, and installing cameras and lighting to
correspond to the perimeter system's added
security zones.
new text end

new text begin (b) Ventilation system renovation
new text end
new text begin 2,242,000
new text end

new text begin To renovate the ventilation system at the
Oak Park Heights Correctional Facility by
demolishing sections of existing ductwork,
installing new ductwork, installing an
ultraviolet lighting system, installing system
air controls and electronics, and cleaning
or otherwise renovating sections of existing
ductwork.
new text end

Sec. 15. new text beginEMPLOYMENT AND ECONOMIC
DEVELOPMENT
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 82,150,000
new text end

new text begin To the commissioner of employment and
economic development or other named
agency for the purposes specified in this
section.
new text end

new text begin Subd. 2. new text end

new text begin Bayport Storm Sewer
new text end

new text begin 150,000
new text end

new text begin To the Public Facilities Authority for a grant
to the city of Bayport for the Middle St. Croix
River Watershed Management Organization
to complete construction documents and
bidding for the sewer system extending from
Minnesota Department of Natural Resources
pond 82-310P (the prison pond) in Bayport
through the Stillwater prison grounds to the
St. Croix River.
new text end

new text begin This appropriation is in addition to the
appropriations in Laws 2000, chapter 492,
article 1, section 21, subdivision 8, to
the commissioner of corrections and in
Laws 2005, chapter 20, article 1, section
23, subdivision 3, to the Public Facilities
Authority, for the same project.
new text end

new text begin Subd. 3. new text end

new text begin DECC Arena
new text end

new text begin 37,000,000
new text end

new text begin This appropriation is from the general fund
for a grant to the Duluth Entertainment
and Convention Center Authority to
design, construct, furnish, and equip capital
improvements and renovations to the Duluth
Entertainment and Convention Center. The
capital improvements and renovations must
include an approximately 217,446 square
foot arena with an ice sheet of at least 200
feet by 85 feet; trade show and concert space;
seating capacity of at least 6,630 with suites,
club seats, and concessions; state-of-the-art
locker and training facilities; and accessible
and expanded media space. Notwithstanding
any law to the contrary, the authority may
adopt a design and construction procurement
process as determined by the authority, in
its discretion, to be in the public interest in
connection with the Duluth Entertainment
and Convention Center improvements.
new text end

new text begin Subd. 4. new text end

new text begin Itasca County - Steel Plant
Infrastructure
new text end

new text begin 30,000,000
new text end

new text begin This appropriation is from the general
fund and is in addition to the appropriation
in Laws 2006, chapter 258, section 21,
subdivision 14.
new text end

new text begin For a grant to Itasca County for public
infrastructure needed to support a steel plant
in Itasca County. Grant money may be used
by Itasca County to acquire right-of-way and
mitigate loss of wetlands and runoff of storm
water, to predesign, design, construct, and
equip roads and rail lines, and, in cooperation
with municipal public utilities, to predesign,
design, construct, and equip natural gas
pipelines, electric infrastructure, water
supply systems, and wastewater collection
and treatment systems.
new text end

new text begin Subd. 5. new text end

new text begin Rochester - Mayo Civic Center
Complex
new text end

new text begin 2,500,000
new text end

new text begin This appropriation is from the general fund
for a grant to the city of Rochester to design
the renovation and expansion of the Mayo
Civic Center Complex.
new text end

new text begin Subd. 6. new text end

new text begin Wildlife Rehabilitation Center
new text end

new text begin 500,000
new text end

new text begin This appropriation is from the general fund
for a grant to the Wildlife Rehabilitation
Center of Minnesota to retire loans incurred
by the center for construction of its facility in
the city of Roseville, and for completion of
educational technology infrastructure at the
center.
new text end

new text begin Subd. 7. new text end

new text begin Rice Street Bridge
new text end

new text begin 2,000,000
new text end

new text begin This appropriation is from the general
fund for a grant to Ramsey County for
the preliminary planning, design, and
engineering of the Rice Street bridge where
it crosses marked Trunk Highway 36 in
Ramsey County.
new text end

new text begin Subd. 8. new text end

new text begin St. Cloud State University - National
Hockey Center
new text end

new text begin 10,000,000
new text end

new text begin This appropriation is from the general fund
to the Board of Trustees of the Minnesota
State Colleges and Universities to predesign,
design, construct, furnish, and equip the
renovation of the National Hockey Center.
new text end

new text begin new text end

Sec. 16. new text beginHOUSING FINANCE AGENCY
new text end

new text begin Browns Valley flooding
new text end

new text begin The Housing Finance Agency may use
the disaster relief contingency fund
established under Minnesota Statutes, section
462A.21, subdivision 29, to assist with the
rehabilitation or replacement of housing
damaged as a result of the Browns Valley
flooding of March 2007, notwithstanding
that the area is not included in a presidential
declaration of major disaster.
new text end

Sec. 17. new text beginBOND SALE EXPENSES
new text end

new text begin $
new text end
new text begin 167,000
new text end

new text begin To the commissioner of finance for bond sale
expenses under Minnesota Statutes, section
16A.641, subdivision 8. Of this amount,
$32,000 is from the bond proceeds account
in the trunk highway fund.
new text end

Sec. 18. new text beginBOND SALE SCHEDULE
new text end

new text begin The commissioner of finance shall schedule
the sale of state general obligation bonds so
that, during the biennium ending June 30,
2009, no more than $918,620,000 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 finance 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.
new text end

Sec. 19. new text beginBOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Bond proceeds fund. new text end

new text begin To provide the money appropriated in this act
from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the
state in an amount up to $111,705,000 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.
new text end

new text begin Subd. 2. new text end

new text begin Transportation fund bond proceeds account. new text end

new text begin To provide the money
appropriated in this article from the state transportation fund, the commissioner of finance
shall sell and issue bonds of the state in an amount up to $30,000,000 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 state transportation fund.
new text end

new text begin Subd. 3. new text end

new text begin Trunk highway bonds. new text end

new text begin To provide the money appropriated in this article
from the bond proceeds account in the trunk highway fund, the commissioner of finance
shall sell and issue trunk highway bonds in an amount up to $33,420,000 in the manner, on
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 on the sale of the bonds, must be credited to
the bond proceeds account in the trunk highway fund.
new text end

Sec. 20. new text beginBOND SALE AUTHORIZATION REDUCTIONS.
new text end

new text begin The bond sale authorization in Laws 2005, chapter 20, article 1, section 28,
subdivision 1, is reduced by $2,000,000.
new text end

new text begin The bond sale authorization in Laws 2006, chapter 258, section 25, subdivision 1, is
reduced by $3,432,000.
new text end

Sec. 21.

Minnesota Statutes 2006, section 85.013, is amended by adding a subdivision
to read:


new text begin Subd. 11b. new text end

new text begin Greenleaf Lake State Recreation Area, which is hereby renamed from
Greenleaf Lake State Park.
new text end

Sec. 22.

Minnesota Statutes 2006, section 116R.01, subdivision 6, is amended to read:


Subd. 6.

Project.

"Project" means the facilities or any property described in section
116R.02, subdivision 5 deleted text beginor 6, as applicabledeleted text end.

Sec. 23.

Minnesota Statutes 2006, section 116R.02, subdivision 1, is amended to read:


Subdivision 1.

Sale authorization.

The commissioner of finance, upon the request
of the governor, may issue and sell revenue bonds as provided under sections 116R.01 to
deleted text begin 116R.16deleted text end new text begin116R.15 new text endin one or more series or issues for the purposes provided in this section
in the aggregate principal amount of up to $350,000,000, except for refunding bonds.
Proceeds of the bonds and investment income on the proceeds are appropriated in the
amounts and for the purposes specified in subdivisions 2deleted text begin,deleted text end new text beginand new text end5deleted text begin, and 6deleted text end and section 116R.04.

Sec. 24.

Minnesota Statutes 2006, section 116R.02, subdivision 2, is amended to read:


Subd. 2.

Loan, lease, and revenue agreements.

(a) The commissioner may loan
the proceeds of the bonds, make other loans or enter into lease agreements or other
revenue agreements for the deleted text beginprojectsdeleted text end new text beginproject new text enddescribed in deleted text beginsubdivisions 5 and 6deleted text endnew text begin subdivision
5
new text end. The commissioner may provide for servicing of the loans and agreements, the times
they are payable and the amounts of payments, the amount of the loans and agreements,
their security, and other terms, conditions, and provisions necessary or convenient in
connection with them and may enter into all necessary contracts and security instruments
in connection with them. The commissioner shall seek to obtain the best available terms
and security for the loans or agreements. The terms and security must be reasonably
determined by the commissioner to be adequate and of the kind and degree which would
be required by an investment banking or other financial institution. The facilities described
in deleted text beginsubdivisions 5 and 6deleted text end new text beginsubdivision 5 new text endmust be pledged as collateral for the loans made and
bonds issued under sections 116R.01 to deleted text begin116R.16deleted text endnew text begin 116R.15new text end.

(b) To reduce the risk that state general funds will be needed to pay debt service on
the state guaranteed bonds, the commissioner must require that the financing arrangements
include a coverage test satisfactory to the commissioner so that the sum of the value of the
assets and other security pledged to the payment of bonds or the rent due under any lease
of the project and taken into account by the commissioner is no less than 125 percent of
the difference between the outstanding state guaranteed bonds, and any cash collateral
held in a debt service reserve account and pledged to the payment of principal and interest
for the state guaranteed bonds and no other bonds. Assets and other security that may be
taken into account include (1) net unencumbered value of the project and any collateral
or third party guaranty, including a letter of credit, pledged or otherwise furnished by a
user of the project or by a benefited airline company as security for the payment of rent,
(2) bond proceeds, including earnings thereon, and (3) prepayments of rent, after making
such adjustments the commissioner determines to be appropriate to take into account
any outstanding bonds secured by a lien on the project or rent that is prior to the lien
securing the state guaranteed bonds, but excluding any cash collateral deducted from the
outstanding state guaranteed bonds in applying the coverage test. The commissioner may
adopt the method of valuing the assets and other security as the commissioner determines
to be appropriate, including valuation of the project at its original cost less depreciation.

Sec. 25.

Minnesota Statutes 2006, section 116R.02, subdivision 4, is amended to read:


Subd. 4.

Security.

(a) If so provided in the commissioner's order or any indenture
authorizing the applicable series of bonds, up to $125,000,000 principal amount of bonds
for the facility described in subdivision 5, deleted text beginup to $50,000,000 principal amount of bonds
for the facility described in subdivision 6,
deleted text end and any bonds issued to refund these bonds may
be secured by either of the following methods:

(1) upon the occurrence of any deficiency in a debt service reserve fund for a series
of bonds as provided in section 116R.13, subdivision 3, the commissioner shall issue and
sell deficiency bonds in a principal amount not to exceed deleted text begin(i)deleted text end $125,000,000 for facilities
described in subdivision 5 deleted text beginand (ii) $50,000,000 for the facilities described in subdivision
6
deleted text end; or

(2) the bonds may be directly secured by a pledge of the full faith, credit, and taxing
power of the state and issued as general obligation revenue bonds of the state in accordance
with the Minnesota Constitution, article XI, sections 4 to 7. In no event may the security
provided by this paragraph extend in whole or part to any series of bonds other than the
initial series of bonds so secured and any series of bonds issued to refund these bonds.

Deficiency bonds and bonds issued under clause (2) must be issued in accordance
with and subject to sections 16A.641, 16A.66, 16A.672, and 16A.675, except for section
16A.641, subdivision 5, except as otherwise provided in Laws 1991, chapter 350, article
1, and except that the bonds may be sold at public or private sale at a price or prices
determined by the commissioner as provided in section 116R.13, subdivision 3.

(b) The commissioner may request St. Louis County to pay or secure payment of
principal and interest due on up to $12,600,000 principal amount of revenue bonds for the
facility described in subdivision 5 deleted text beginand principal and interest due on up to $15,000,000
principal amount of revenue bonds for the facility described in subdivision 6
deleted text end. At the
request of the commissioner, St. Louis County shall, by resolution of its county board,
unconditionally and irrevocably pledge as a general obligation, its full faith, credit, and
taxing power to pay or secure payment of principal and interest due on the principal
amount or amounts requested by the commissioner. The general obligation and pledge of
St. Louis County are not subject to and shall not be taken into account for purposes of any
debt limitation. A levy of taxes for the St. Louis County general obligation is not subject
to and shall not be taken into account for purposes of any levy limitations. The general
obligation and the bonds secured by the general obligation may be issued without an
election. Except for sections 475.61 and 475.64, chapter 475 does not apply to the general
obligation or to the bonds secured by the general obligation.

(c) The commissioner may request the city of Duluth to pay or secure payment of
principal and interest due on up to $47,600,000 principal amount of revenue bonds for the
facility described in subdivision 5. At the request of the commissioner, the city of Duluth
shall pledge specified revenues of the city, as provided in Laws 1991, chapter 350, article
1, section 24, to pay principal and interest due on the principal amount requested by
the commissioner.

(d) Bonds and deficiency bonds issued under sections 116R.01 to deleted text begin116R.16deleted text end new text begin116R.15
new text endand any indenture entered into in connection with the issuance of the bonds are not subject
to section 16B.06.

Sec. 26.

Minnesota Statutes 2006, section 116R.02, subdivision 5, is amended to read:


Subd. 5.

Use of proceeds; aircraft maintenance facility.

The proceeds of the
bonds issued in a principal amount not to exceed $250,000,000 may be used to finance
the costs related to the planning, construction, improvement, or equipping of a heavy
maintenance facility for aircraft and facilities subordinate and related to the facility to be
located at the Duluth International Airport and any costs of issuance, reserves, credit
enhancement, or an initial period of interest payments related to the bonds or the facility.
The bond proceeds are appropriated to the commissioner for the purposes specified in this
subdivision. deleted text beginThe facility may be owned by the Metropolitan Airports Commission and
leased for the benefit of one or more airline companies for use as a heavy maintenance
base.
deleted text end With the approval of the commissioner, the owner of the facility may place a
mortgage or security interest lien on the facility or any interest in or part of the facility.
The mortgage is exempt from the mortgage registry tax imposed under chapter 287. In
the event of a default under the loan, lease agreement, or other revenue agreement, the
facility, or any part of the facility, may be leased or sold to another person for any lawful
purpose, subject to the approval of the commissioner. The approval of the commissioner
is not required if the bond trustee has taken control of the facility as a result of a default.

The ownership of the facility by the owner may create no liability of the owner for
payment of the debt service on the bonds if so determined by the commissioner. The
owner may require as a condition of entering into the lease of the facility that the lessee or
other party pay all costs, expenses, or any other obligations of ownership of the facility.

No revenues derived from the lease of the project may be used other than for a
purpose related to the project, including its operation, administration, maintenance,
improvement, or financing.

Sec. 27.

Minnesota Statutes 2006, section 116R.03, is amended to read:


116R.03 GENERAL POWERS.

For the purpose of exercising the specific powers authorized under sections 116R.01
to deleted text begin116R.16deleted text end new text begin116R.15 new text endand effectuating the other purposes of sections 116R.01 to deleted text begin116R.16,deleted text end
new text begin 116R.15, new text endthe commissioner may:

(1) acquire, hold, pledge, assign, new text beginlease, new text endor dispose of real or personal property or
any interest in property, including a mortgage or security interest in a facility described in
section 116R.02, subdivision 5 deleted text beginor 6deleted text end;

(2) enter into agreements, contracts, or other transactions with any federal or state
agency, any person and any domestic or foreign partnership, corporation, association, or
organization, including contracts or agreements for administration and implementation of
all or part of sections 116R.01 to deleted text begin116R.16deleted text endnew text begin 116R.15new text end;

(3) acquire real property, or an interest therein, by purchase or foreclosure, where
the acquisition is necessary or appropriate;

(4) enter into agreements with lenders, borrowers, or the issuers of securities for the
purpose of regulating the development and management of any facility financed in whole
or in part by the proceeds of bonds or loans;

(5) enter into agreements with other appropriate federal, state, or local governmental
units; deleted text beginand
deleted text end

(6) contract with, use, or employ any federal, state, regional, or local public or
private agency or organization, legal counsel, financial advisors, investment bankers or
others, upon terms the commissioner considers necessary or desirable, to assist in the
exercise of any of the powers authorized under sections 116R.01 to deleted text begin116R.16deleted text endnew text begin 116R.15new text end and
to carry out the objectives of sections 116R.01 to deleted text begin116R.16deleted text endnew text begin 116R.15new text end and may pay for the
services from bond proceeds or otherwise available department moneydeleted text begin.deleted text endnew text begin; and
new text end

new text begin (7) in the event of a default under the loan, lease agreement, or other revenue
agreement, the facility, or any part of the facility, may be leased or sold to another person
for any lawful purpose, subject to the approval of the commissioner. The approval of the
commissioner is not required if the bond trustee has taken control of the facility as a
result of a default.
new text end

Sec. 28.

Minnesota Statutes 2006, section 116R.05, subdivision 2, is amended to read:


Subd. 2.

Sources of payment.

Except as otherwise provided for bonds issued
under section 116R.02, subdivision 4, paragraph (a), the bonds and interest payable
thereon are payable solely from the following sources and are irrevocably appropriated
for that purpose, but only to the extent provided in the order or indenture authorizing or
securing the bonds:

(1) revenues of any nature derived from the ownership, lease, operation, sale,
foreclosure, or refinancing of a project described in section 116R.02, subdivision 5 deleted text beginor 6deleted text end;

(2) repayments of any loans made under sections 116R.01 to deleted text begin116R.16deleted text endnew text begin 116R.15new text end;

(3) proceeds of any bonds or deficiency bonds;

(4) amounts in any account or accounts authorized by section 116R.11 or 116R.12;

(5) amounts paid by St. Louis County under its obligations referred to in section
116R.02, subdivision 4, and amounts paid under Laws 1991, chapter 350, article 1, section
24 or 25, for the payment of bonds or interest thereon;

(6) amounts payable under any insurance policy, guaranty, letter of credit, or other
instrument securing the bonds;

(7) any other revenues which the commissioner may pledge but excluding state
appropriations unless the appropriation was specifically designated for that purpose; and

(8) investment income on any of the sources specified in clauses (1) to (7).

Sec. 29.

Minnesota Statutes 2006, section 116R.11, subdivision 1, is amended to read:


Subdivision 1.

Funds.

The commissioner or any trustee appointed by the
commissioner under sections 116R.01 to deleted text begin116R.16deleted text end new text begin116R.15 new text endshall establish and maintain an
aircraft facilities fund for deleted text begineach of the projectsdeleted text end new text beginthe project new text enddescribed in section 116R.02,
deleted text begin subdivisions 5 and 6deleted text endnew text begin subdivision 5new text end
. Except for amounts required by the commissioner to
be deposited in a debt service account, proceeds of each issue of bonds authorized under
section 116R.02, subdivision 1, must be deposited in a separate account, debt service
reserve, or other account designated by the commissioner. Money in the account is
appropriated to the commissioner. The commissioner or the owner of deleted text begineachdeleted text end new text beginthe new text endproject
described in section 116R.02, deleted text beginsubdivisions 5 and 6deleted text endnew text begin subdivision 5new text end, may withdraw proceeds
of bonds for application to the appropriated purposes in the manner provided by order
of the commissioner or in any indenture authorized by order of the commissioner. The
commissioner may establish whatever accounts might be necessary to carry out sections
116R.01 to deleted text begin116R.16deleted text endnew text begin 116R.15new text end. All deposits into and disbursements from accounts for the
purposes and from the sources of revenue authorized by sections 116R.01 to deleted text begin116R.16deleted text end
new text begin 116R.15 new text endand provided in an order of the commissioner or an indenture or other agreement
authorized by the commissioner are appropriated for that purpose.

Sec. 30.

Minnesota Statutes 2006, section 116R.12, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Approval. new text end

new text begin The approval of the commissioner is not required if the bond
trustee has taken control of the facility as a result of a default.
new text end

Sec. 31.

Minnesota Statutes 2006, section 272.01, subdivision 2, is amended to read:


Subd. 2.

Exempt property used by private entity for profit.

(a) When any real or
personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is
leased, loaned, or otherwise made available and used by a private individual, association,
or corporation in connection with a business conducted for profit, there shall be imposed a
tax, for the privilege of so using or possessing such real or personal property, in the same
amount and to the same extent as though the lessee or user was the owner of such property.

(b) The tax imposed by this subdivision shall not apply to:

(1) property leased or used as a concession in or relative to the use in whole
or part of a public park, market, fairgrounds, port authority, economic development
authority established under chapter 469, municipal auditorium, municipal parking facility,
municipal museum, or municipal stadium;

(2) property of an airport owned by a city, town, county, or group thereof which is:

(i) leased to or used by any person or entity including a fixed base operator; and

(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
services, or facilities to the airport or general public;

the exception from taxation provided in this clause does not apply to:

(i) property located at an airport owned or operated by the Metropolitan Airports
Commission or by a city of over 50,000 population according to the most recent federal
census or such a city's airport authority;new text begin or
new text end

(ii) hangars leased by a private individual, association, or corporation in connection
with a business conducted for profit other than an aviation-related business; deleted text beginor
deleted text end

deleted text begin (iii) facilities leased by a private individual, association, or corporation in connection
with a business for profit, that consists of a major jet engine repair facility financed, in
whole or part, with the proceeds of state bonds and located in a tax increment financing
district;
deleted text end

(3) property constituting or used as a public pedestrian ramp or concourse in
connection with a public airport;

(4) property constituting or used as a passenger check-in area or ticket sale counter,
boarding area, or luggage claim area in connection with a public airport but not the
airports owned or operated by the Metropolitan Airports Commission or cities of over
50,000 population or an airport authority therein. Real estate owned by a municipality
in connection with the operation of a public airport and leased or used for agricultural
purposes is not exempt;

(5) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under a cooperative farming agreement made pursuant to
section 97A.135; or

(6) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under section 272.68, subdivision 4.

(c) Taxes imposed by this subdivision are payable as in the case of personal property
taxes and shall be assessed to the lessees or users of real or personal property in the same
manner as taxes assessed to owners of real or personal property, except that such taxes
shall not become a lien against the property. When due, the taxes shall constitute a debt
due from the lessee or user to the state, township, city, county, and school district for
which the taxes were assessed and shall be collected in the same manner as personal
property taxes. If property subject to the tax imposed by this subdivision is leased or used
jointly by two or more persons, each lessee or user shall be jointly and severally liable for
payment of the tax.

(d) The tax on real property of the state or any of its political subdivisions that is
leased by a private individual, association, or corporation and becomes taxable under
this subdivision or other provision of law must be assessed and collected as a personal
property assessment. The taxes do not become a lien against the real property.

Sec. 32.

Minnesota Statutes 2006, section 290.06, subdivision 24, is amended to read:


Subd. 24.

Credit for job creation.

(a) A corporation that leases and operates
a heavy maintenance base for aircraft that is owned by the state of Minnesota or one
of its political subdivisionsdeleted text begin, or an engine repair facility described in section 116R.02,
subdivision 6
, or both,
deleted text end may take a credit against the tax due under this chapter.

(b) For the first taxable year when the facility has been in operation for at least three
consecutive months, the credit is equal to $5,000 multiplied by the number of persons
employed by the corporation on a full-time basis at the facility on the last day of the taxable
year, not to exceed the number of persons employed by the corporation on a full-time basis
at the facility on the date 90 days before the last day of the taxable year. For each of the
succeeding four taxable years, the credit is equal to $5,000 multiplied by the number of
persons employed by the corporation on a full-time basis at the facility on the last day of
the taxable year, not to exceed the number of persons employed by the corporation on a
full-time basis at the facility on the date 90 days before the last day of the taxable year.

(c) For the first taxable year in which the credit is allowed for the facility, the credit
must not exceed 80 percent of the wages paid to or incurred for persons employed by the
taxpayer at the facility during the taxable year. For the succeeding four taxable years, the
credit must not exceed 20 percent of the wages paid to or incurred for persons employed
by the taxpayer at the facility during the taxable year. For purposes of this section,
"wages" has the meaning given under section 3121(b) of the Internal Revenue Code,
except the limitation to the contribution and benefit base does not apply.

(d) If the credit provided under this subdivision exceeds the tax liability of the
corporation for the taxable year, the excess amount of the credit may be carried over to
each of the 20 taxable years succeeding the taxable year. The entire amount of the credit
must be carried to the earliest taxable year to which the amount may be carried. The
unused portion of the credit must be carried to the following taxable year. No credit
may be carried to a taxable year more than 20 years after the taxable year in which the
credit was earned.

(e) If an unused portion of the credit remains at the end of the carryover period under
paragraph (d), the commissioner shall refund the unused portion to the taxpayer. The
provisions of this paragraph do not apply if the corporation that earned the credit under this
subdivision or a successor in interest to the corporation filed for bankruptcy protection.

Sec. 33.

Minnesota Statutes 2006, section 297A.71, subdivision 10, is amended to read:


Subd. 10.

Aircraft heavy maintenance facility.

Materials, equipment, and supplies
used or consumed in constructing a heavy maintenance facility for aircraft that is to be
owned by the state of Minnesota or one of its political subdivisions and leased by an airline
companydeleted text begin, or an aircraft engine repair facility described in section 116R.02, subdivision
6
, are
deleted text end new text beginis new text endexempt. Except for equipment owned or leased by a contractor, all machinery,
equipment, and tools necessary to the construction and equipping of that facility in order
to provide those services are also exempt.

Sec. 34.

Minnesota Statutes 2006, section 360.013, subdivision 39, is amended to read:


Subd. 39.

Airport.

"Airport" means any area of land or water, except a restricted
landing area, which is designed for the landing and takeoff of aircraft, whether or not
facilities are provided for the shelter, surfacing, or repair of aircraft, or for receiving or
discharging passengers or cargo, and all appurtenant areas used or suitable for airport
buildings or other airport facilities, deleted text beginincluding facilities described in section 116R.02,
subdivision 6
,
deleted text end and all appurtenant rights-of-way, whether heretofore or hereafter
established. The operation and maintenance of airports is an essential public service.

Sec. 35.

Minnesota Statutes 2006, section 360.032, subdivision 1, is amended to read:


Subdivision 1.

Acquisition.

Every municipality is hereby authorized, through its
governing body, to acquire property, real or personal, for the purpose of establishing,
constructing, and enlarging airports and other air navigation facilities and to acquire,
establish, construct, enlarge, improve, maintain, equip, operate, and regulate such airports
and other air navigation facilities and structures and other property incidental to their
operation, either within or without the territorial limits of such municipality and within
or without this state; to make, prior to any such acquisition, investigations, surveys, and
plans; to construct, install, and maintain airport facilities for the servicing deleted text beginand repairdeleted text end of
aircraft deleted text beginand facilities authorized under section 116R.02, subdivision 6deleted text end, and for the comfort
and accommodation of air travelers; and to purchase and sell equipment and supplies as
an incident to the operation of its airport properties. It may not acquire, or take over any
airport or other air navigation facility owned or controlled by any other municipality of
the state without the consent of such municipality. It may use for airport purposes any
available property that is now or may at any time hereafter be owned or controlled by it.
Such air navigation facilities as are established on airports shall be supplementary to and
coordinated in design and operation with those established and operated by the federal and
state governments. It may assist other municipalities in the construction of approach roads
leading to any airport or restricted landing area owned or controlled by it. deleted text beginIn financing the
facilities authorized under section 116R.02, subdivision 6, it may borrow from the state
or otherwise arrange for financing of the facilities and for that purpose may exercise any
powers vested in a municipality under sections 469.152 to 469.165.
deleted text end

Sec. 36.

Minnesota Statutes 2006, section 360.038, subdivision 4, is amended to read:


Subd. 4.

Leased property.

To lease for a term not exceeding 30 years such airportsdeleted text begin,deleted text end
new text begin or new text endother air navigation facilities deleted text beginor facilities authorized under section 116R.02, subdivision
6
,
deleted text end or real property acquired or set apart for airport purposes, to private parties, any
municipal or state government or the national government, or any department of either
thereof, for operation; to lease or assign for a term not exceeding 99 years to private
parties, any municipal or state government, or the national government, or any department
of either thereof, for operation or use consistent with the purposes of sections 360.011 to
360.076, space, area, improvements, or equipment on such airports; notwithstanding any
other provisions in this subdivision, to lease ground area for a term not exceeding 99 years
to private persons for the construction of structures which in its opinion are essential and
necessary to serve aircraft, persons, and things engaged in or incidental to aeronautics,
including but not limited to shops, hangars, offices, restaurants, hotels, motels, factories,
storage space, and any and all other structures necessary or essential to and consistent with
the purposes of sections 360.011 to 360.076, to sell any part of such airports, other air
navigation facilities, or real property to any municipal or state government, or to the
United States or any department or instrumentality thereof, for aeronautical purposes
incidental thereto, and to confer the privileges of concessions of supplying upon its
airports goods, commodities, things, services, and facilities; provided that in each case in
so doing the public is not deprived of its rightful, equal, and uniform use thereof.

Sec. 37.

Laws 2005, chapter 20, article 1, section 7, subdivision 2, is amended to read:


Subd. 2.

Flood Hazard Mitigation Grants

27,000,000

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.

The commissioner shall determine project
priorities as appropriate based on need.

This appropriation includes money for
the following projects: Ada, Austin,
Breckenridge, new text beginBrowns Valley, new text endCanisteo
Mine, Cannon Falls, Crookston, Dawson,
East Grand Forks, Grand Marais Creek,
Granite Falls, Green Meadow Dam, Inver
Grove Heights, Little McDonald Lake,
Malung, Manston Slough, Minneapolis,
Montevideo, Oakport, Palmville, Roseau
River, St. Louis Park, Two River Ross
Impoundment, Warren, and Whiskey Creek.

$2,000,000 is for Austin for identified
capital improvement projects, and any
other authorized federal or state flood
mitigation projects in the area designated
under Presidential Declaration of Major
Disaster, DR-1569, whether included in the
original declaration or added later by federal
government action. The area currently
included in DR-1569 includes territory
within the counties of Dodge, Faribault,
Freeborn, Martin, Mower, Olmsted, and
Steele.

$175,000 is for the state share of a grant to
the city of Cannon Falls for predesign and
design of capital improvements to alleviate
flooding caused by runoff from the bluffs and
the flooding of the Little Cannon River and
the Cannon River.

For any project listed in this subdivision that
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.

To the extent that the cost of a project in
Ada, Austin, Breckenridge,new text begin Browns Valley,new text end
Dawson, East Grand Forks, Granite Falls,
Montevideo, Oakport Township, Roseau, or
Warren exceeds two percent of the median
household income in the municipality
multiplied by the number of households in
the municipality, this appropriation is also
for the local share of the project.

There is no local share required for the
Canisteo Mine project.

For grants for Roseau River wildlife
management area, Palmville, and Malung,
the state share must be $3 for each $1 of
nonstate contribution.

Notwithstanding the grant expiration date of
June 30, 2002, the commissioner of natural
resources shall extend until June 30, 2007,
the expiration date of a grant made to the
city of Stillwater under Minnesota Statutes,
section 103F.161, used to match certain
federal appropriations for flood hazard
mitigation.

Sec. 38.

Laws 2005, chapter 20, article 1, section 7, subdivision 21, is amended to read:


Subd. 21.

State Park and Recreation Area
Acquisition

2,500,000

For acquisition of land under Minnesota
Statutes, section 86A.05, subdivisions 2 and
3, from willing sellers of private lands within
state park and recreation area boundaries
established by law.

$500,000 is to purchase land within the
boundaries of Greenleaf Lake state deleted text beginparkdeleted text endnew text begin
recreation area
new text end in Meeker county.

Sec. 39.

Laws 2005, chapter 20, article 1, section 17, is amended to read:


Sec. 17.PUBLIC SAFETY

642,000

To the commissioner of public safety for
a grant to the new text beginEconomic Development
Authority in and for the
new text endcity of Blue Earth
to acquire land for and to predesign, design,
construct, furnish, and equip a fire and
police station. This appropriation is not
available until the commissioner of finance
has determined that at least an equal amount
has been committed to the project from
nonstate sources.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 40.

Laws 2005, chapter 20, article 1, section 20, subdivision 3, is amended to read:


Subd. 3.

Systemwide Redevelopment, Reuse,
or Demolition

17,600,000

To demolish or improve surplus,
nonfunctional, or deteriorated facilities and
infrastructure at Department of Human
Services campuses statewide.

(a) Up to $8,600,000 may be used to
predesign, design, construct, furnish,
and equip renovation of existing space
or construction of new space for skilled
nursing home capacity for forensic treatment
programs operated by state-operated services
on the campus of St. Peter Regional
Treatment Center.

(b) $4,000,000 may be used to prepare
and develop a site, including demolition of
buildings and infrastructure, to implement
the redevelopment and reuse of the
Ah-Gwah-Ching Regional Treatment Center
campus. If the property is sold or transferred
to a local unit of government, the unspent
portion of this appropriation may be granted
to the local unit of government that acquires
the campus for the purposes stated in this
subdivision.new text begin Notwithstanding Minnesota
Statutes, section 16A.642, this appropriation
and its corresponding bond authorization do
not cancel until June 30, 2010.
new text end

(c) $1,000,000 may be used to renovate one
or more buildings for chemical dependency
treatment specializing in methamphetamine
addiction, and demolish buildings, on the
Willmar Regional Treatment Center campus.
If the property is sold or transferred to a local
unit of government, the unspent portion of
this appropriation may be granted to the local
unit of government that acquires the campus
for the purposes stated in this subdivision.

(d) Up to $2,210,000 may be spent by the
commissioner of finance to retire municipal
bonds issued by the city of Fergus Falls and
to retire interfund loans incurred by the city
of Fergus Falls in connection with the waste
incinerator and steam heating facility at the
Fergus Falls Regional Treatment Center.

(e) Up to $400,000 may be used for a grant to
the city of Fergus Falls to demolish the city's
waste-to-energy incineration plant located
on the grounds of the Fergus Falls Regional
Treatment Center.

(f) The provisions, terms, and conditions
of any grant made by the director of the
Office of Environmental Assistance under
Minnesota Statutes, chapter 115A, to the
city of Fergus Falls for the waste incinerator
steam heating facility that supports the
Fergus Falls Regional Treatment Center and
that may come into effect as a result of the
incinerator and facility being closed, are
hereby waived.

Sec. 41.

Laws 2005, chapter 20, article 1, section 21, subdivision 2, is amended to read:


Subd. 2.

Asset Preservation

4,000,000

For asset preservation improvements and
betterments of a capital nature at veterans
homes statewide to be spent in accordance
with Minnesota Statutes, section 16A.632.

Up to $2,200,000 of federal money received
by the Minnesota Veterans Homes Board
of Directors as reimbursement for state
capital expenditures at the veterans homes
must be credited to the general fund and
is appropriated to the commissioner of
administration for deleted text beginasset preservationdeleted text end new text beginrepairs
and betterments
new text endat the homes deleted text beginin accordance
with Minnesota Statutes, section 16A.632
deleted text end.

Sec. 42.

Laws 2005, chapter 20, article 1, section 23, subdivision 8, is amended to read:


Subd. 8.

Lewis and Clark Rural Water System,
Inc.

2,000,000

new text begin This appropriation is from the general fund
new text endto the Public Facilities Authority for grants
to the deleted text begincity of Luverne, city of Worthington
Public Utilities, Lincoln-Pipestone rural
water system, and Rock County rural water
system
deleted text end new text beginLewis and Clark Joint Powers
Board
new text endto acquire land, predesign, design,
construct, furnish, and equip deleted text beginone or moredeleted text end
water transmission and storage facilities deleted text beginto
accommodate the connection with
deleted text endnew text begin ofnew text end the
Lewis and Clark Rural Water System, Inc.
that will serve southwestern Minnesota.

deleted text begin The grantsdeleted text endnew text begin Payment to the Lewis and Clark
Rural Water System, Inc.,
new text end must be deleted text beginawarded
to projects
deleted text end approved by the Lewis and Clark
Joint Powers Board.

This appropriation is available only to the
extent new text beginthat each $1 of state money is new text endmatched
by at least $1 of local money paid to the
Lewis and Clark Rural Water System, Inc.deleted text begin
for each $1 of state money to be used to
reimburse costs incurred on eligible projects.
deleted text end

This appropriation is the first phase of the
state share for the Lewis and Clark Rural
Water System, Inc. project as defined in the
federal Lewis and Clark Rural Water System
Act of 2000.

Sec. 43.

Laws 2005, chapter 20, article 1, section 23, subdivision 16, is amended to
read:


Subd. 16.

Minneapolis

(a) Minnesota Planetarium
22,000,000

For a grant to deleted text beginthe city of Minneapolisdeleted text endnew text begin
Hennepin County
new text end to complete design and
to construct, furnish, and equip a new
Minnesota planetarium and space discovery
center in conjunction with the Minneapolis
downtown library.

(b) Heritage Park

Any unspent balance remaining on December
31, 2004, in the appropriation made by
Laws 2000, chapter 492, article 1, section
22, subdivision 10, for a grant to the city of
Minneapolis, may be used by the city for
improvements to the Heritage Park project.

(c) Minnesota Shubert Center
1,000,000

For a grant to the city of Minneapolis to
predesign and design and provide for related
capital costs for an associated atrium to
create the Minnesota Shubert Center.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective on the same date as H.F. 1973/S.F.
1812, if enacted in the 2007 legislative session.
new text end

Sec. 44.

Laws 2005, chapter 156, article 2, section 46, is amended to read:


Sec. 46. FORD BUILDING.

The Ford Building at 117 University Avenue in St. Paul may not be demolished
deleted text begin during the biennium endingdeleted text endnew text begin beforenew text end June 30, deleted text begin2007deleted text endnew text begin 2008new text end. By January 15, 2006, the
commissioner of administration, in consultation with interested legislators, private sector
real estate professionals, historic preservation specialists, and representatives of the city of
St. Paul, neighboring property, and St. Paul neighborhood associations, must report to the
legislature with recommendations regarding potential means of preserving and using the
Ford Building. The report must include:

(1) availability of potential lessees for the building;

(2) constraints on leasing the building, including the requirement to pay off any state
general obligation bonds previously used in maintaining or rehabilitating the building; and

(3) the cost of restoring and rehabilitating the building, and the feasibility of various
means of paying these costs, including potential use of revenue bonds.

Sec. 45.

Laws 2006, chapter 258, section 4, subdivision 4, is amended to read:


Subd. 4.

MacPhail Music Center

5,000,000

(a) For a grant to the city of Minneapolis to
predesign, design, construct, furnish, and
equip a new facility for the MacPhail Center
for Music. The city of Minneapolis may
enter into a lease or management agreement
to operate the center, subject to Minnesota
Statutes, section 16A.695. This appropriation
is not available until the commissioner has
determined that not less than $15,000,000
has been committed to the MacPhail Center
for Music from nonstate sources, and that
the available money is sufficient to complete
a functional facility. Money secured before
the effective date of this section may count
toward the required commitment of nonstate
sources, provided it is used for qualified
capital expenditures. Any land acquisition
costs paid by MacPhail Center for Music
qualify as capital expenditures.

(b) The city of Minneapolis may provide
money to predesign, design, construct,
furnish, and equip a center for music
education, including classrooms and a
recital hall in the city of Minneapolis,
to provide a facility for education of
students, music therapy programs for
persons with disabilities, music teacher
training opportunities, curriculum and
program development, and to provide the
programming in public and private schools
and in partnership with other organizations
throughout the state.

new text begin (c) The required demonstration of a
commitment of funds from nonstate sources
has been met by cash, prepaid qualified
expenses, and private multiyear pledges that
have been converted into cash through bond
financing and a letter of credit secured by
a mortgage lien on the state bond financed
property. The $5,000,000 construction grant
shall be disbursed without requirement that
the mortgage lien be released.
new text end

new text begin (d) The commissioners of education and
finance shall agree to a provision in the
ground lease that permits the city of
Minneapolis to purchase for fair market
value, as that term is defined in Minnesota
Statutes, section 16A.695, subdivision 1,
paragraph (d), the interest of the operating
lease lessee in the state bond financed
property (based on investment in land
and capital improvements) in the event of
nonrenewal of the operating lease at the time
of nonrenewal without requirement of a prior
escrow for funds by the city of Minneapolis.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from June 2, 2006.
new text end

Sec. 46.

Laws 2006, chapter 258, section 7, subdivision 3, is amended to read:


Subd. 3.

Flood Hazard Mitigation Grants

25,000,000

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.

The commissioner shall determine project
priorities as appropriate, based on need.

This appropriation includes money for the
following projects:

(a) Austin

(b) Albert Lea

(c) new text beginBrowns Valley
new text end

new text begin (d) new text endCrookston

deleted text begin (d)deleted text endnew text begin (e)new text end Canisteo Mine

deleted text begin (e)deleted text endnew text begin (f)new text end Delano

deleted text begin (f)deleted text endnew text begin (g)new text end East Grand Forks

deleted text begin (g)deleted text endnew text begin (h)new text end Golden Valley

deleted text begin (h)deleted text endnew text begin (i)new text end Grand Marais Creek

deleted text begin (i)deleted text endnew text begin (j)new text end Granite Falls

deleted text begin (j)deleted text endnew text begin (k)new text end Inver Grove Heights

deleted text begin (k)deleted text endnew text begin (l)new text end Manston Slough

deleted text begin (l)deleted text endnew text begin (m)new text end Oakport Township

deleted text begin (m)deleted text endnew text begin (n)new text end Riverton Township

deleted text begin (n) deleted text end new text begin (o) Roseau
new text end

new text begin (p)new text end Shell Rock Watershed District

deleted text begin (o)deleted text endnew text begin (q)new text end St. Vincent

deleted text begin (p)deleted text endnew text begin (r)new text end Wild Rice River Watershed District

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.

To the extent that the cost of a project in Ada,
Breckenridge, new text beginBrowns Valley, new text endCrookston,
Dawson, East Grand Forks, Granite Falls,
Montevideo, Oakport Township, Roseau,
St. Vincent, or Warren exceeds two percent
of the median household income in the
municipality multiplied by the number
of households in the municipality, this
appropriation is also for the local share of the
project. The local share for the St. Vincent
dike may not exceed $30,000.

Sec. 47.

Laws 2006, chapter 258, section 7, subdivision 7, is amended to read:


Subd. 7.

Lake Superior safe harbors

3,000,000

To design and construct capital improvements
to public accesses and small craft harbors on
Lake Superior in accordance with Minnesota
Statutes, sections 86A.20 to 86A.24, and in
cooperation with the United States Army
Corps of Engineers.

This appropriation may be used to develop
the harbor of refuge and marina at Two
Harbors and is added to the appropriations
in Laws 1998, chapter 404, section 7,
subdivision 24; and Laws 2000, chapter
492, article 1, section 7, subdivision 21, as
amended by Laws 2005, chapter 20, article
1, section 42. Notwithstanding those laws,
the commissioner may proceed with the Two
Harbors project new text beginby providing up to $625,000
to complete the design specifications and
environmental work currently underway and
proceed with the remaining money for the
project
new text endupon securing an agreement with the
U.S. Army Corps of Engineers that commits
federal expenditures of at least $4,000,000
to the project.

Sec. 48.

Laws 2006, chapter 258, section 7, subdivision 11, is amended to read:


Subd. 11.

Water control structures

1,000,000

To rehabilitate or replace water control
structures used to manage shallow lakes and
wetlands for waterfowl habitat on wildlife
management areas under Minnesota Statutes,
section 86A.05, subdivision 8new text begin, or for the
purposes of public water reserves under
Minnesota Statutes, section 97A.101
new text end.

Sec. 49.

Laws 2006, chapter 258, section 7, subdivision 22, is amended to read:


Subd. 22.

Regional trails

1,133,000

For matching grants under Minnesota
Statutes, section 85.019, subdivision 4b.

$648,000 is for the Agassiz Recreational
ATV Trail.new text begin Snowmobile trail grant money
received under Minnesota Statutes, section
84.83, subdivision 3, and all-terrain vehicle
trail grant money received under Minnesota
Statutes, section 84.927, subdivision 2, may
be counted as part of the county's required 50
percent nonstate match.
new text end

$485,000 is for a grant to the Central
Minnesota Regional Parks and Trails
Coordination Board to design, engineer,
and construct 6.3 miles of trail and two
parking areas along the Mississippi River
in Sherburne County, to be known as Xcel
Energy Great River Woodland Trail.

Sec. 50.

Laws 2006, chapter 258, section 16, subdivision 4, is amended to read:


Subd. 4.

Northstar Commuter Rail

60,000,000

(a) To acquire land, or an interest in land,
and to design, construct, furnish, and equip
the Northstar commuter rail line serving
Big Lake to downtown Minneapolis and
to acquire land, or an interest in land, and
to design, construct, furnish, and equip
the extension of the Hiawatha light rail
transit line from its terminus in downtown
Minneapolis to a new terminus near Fifth
Avenue North adjacent to the proposed
downtown Minneapolis commuter rail
station.

(b) This appropriation is added to the
appropriation in Laws 2005, chapter 20,
article 1, section 18, subdivision 5.

(c) This appropriation is not available until
a full-funding grant agreement has been
executed withnew text begin, or a letter of no prejudice
for a specific component of the project or
pre-award authority has been issued by,
new text end the
Federal Transit Administration.

(d) If the Northstar commuter rail line is
extended from Big Lake to the St. Cloud
area, regional rail authority members of the
Northstar Corridor Development Authority
who did not fund a portion of the share
of capital costs from Minneapolis to Big
Lake shall contribute an amount for the
extension equal to the amount they would
have contributed for their proportional share
of the entire line from Minneapolis to the
St. Cloud area.

Sec. 51.

Laws 2006, chapter 258, section 21, subdivision 6, is amended to read:


Subd. 6.

Redevelopment Account

9,000,000

For purposes of the redevelopment account
under Minnesota Statutes, section 116J.571.

$800,000 is for a grant to the city of
Worthington to remediate contaminated
soil and redevelop the site of the former
Campbell Soup factory.new text begin This grant is exempt
from the requirements of Minnesota Statutes,
sections 116J.572 to 116J.575.
new text end

$250,000 is for a grant to the city of
Winona to predesign facilities for the
Shakespeare Festival as part of the riverfront
redevelopment plan. This grant is exempt
from the requirements of Minnesota Statutes,
sections 116J.572 to 116J.575.

Sec. 52.

Laws 2006, chapter 258, section 21, subdivision 15, is amended to read:


Subd. 15.

Lewis and Clark Rural Water
System, Inc.

3,282,000

new text begin This appropriation is from the general fund
new text endto the Public Facilities Authority for grants
to the deleted text begincity of Luverne, city of Worthington
Public Utilities, Lincoln-Pipestone rural
water system, and Rock County rural water
system
deleted text endnew text begin Lewis and Clark Joint Powers
Board
new text end to acquire land, predesign, design,
construct, furnish, and equip deleted text beginone or moredeleted text end
water transmission and storage facilities deleted text beginto
accommodate the connection with
deleted text endnew text begin ofnew text end the
Lewis and Clark Rural Water System, Inc.
that will serve southwestern Minnesota.

deleted text begin The grantsdeleted text endnew text begin Payment to the Lewis and Clark
Rural Water System, Inc.
new text end must be deleted text beginawarded
to projects
deleted text end approved by the Lewis and Clark
Joint Powers Board.

This appropriation is available to the extent
that each $1 of state money is matched by at
least $1 of local money paid to the Lewis and
Clark Rural Water System, Inc. deleted text beginto reimburse
the system for costs incurred on eligible
projects.
deleted text end

Sec. 53.

Laws 2006, chapter 258, section 23, subdivision 3, is amended to read:


Subd. 3.

Historic Fort Snelling Museumnew text begin and
Visitor Center
new text end

1,100,000

To design deleted text beginthe restoration and renovation of
the 1904 Cavalry Barracks Building for
deleted text end the
historic Fort Snelling Museumnew text begin and Visitor
Center and other site improvements to
revitalize historic Fort Snelling
new text end.

Sec. 54. new text beginREPORT ON EAST PHILLIPS CULTURAL AND COMMUNITY
CENTER.
new text end

new text begin The Metropolitan Council shall report by January 1, 2008, to the legislative
committees with jurisdiction over capital investment on the terms of the grant agreement
and progress on design and construction of the East Phillips Cultural and Community
Center by the Minneapolis Park and Recreation Board with the appropriation in Laws
2006, chapter 258, section 17, subdivision 8.
new text end

Sec. 55. new text beginPUBLIC FACILITIES AUTHORITY FUNDING.
new text end

new text begin To the greatest practical extent, projects on the Public Facilities Authority's 2007
intended use plan, the listings for which were based on the Pollution Control Agency's
2006 project priority list, shall be carried over to the 2008 intended use plan. Projects that
qualified for funding from the Public Facilities Authority under Laws 2006, chapter 258,
section 21, that could not be certified by the Pollution Control Agency by the applicable
deadline shall have until May 1, 2008, or six months after the Minnesota Supreme Court
issues an opinion in the cities of Maple Lake and Annandale matter, whichever is later, to
obtain the required certification from the Pollution Control Agency.
new text end

Sec. 56. new text beginGREENLEAF LAKE STATE RECREATION AREA.
new text end

new text begin Subdivision 1. new text end

new text begin [85.013] [Subd. 11b.] Greenleaf Lake State Recreation Area.
new text end

new text begin In addition to the lands designated under Laws 2003, First Special Session chapter 13,
section 6, as amended by Laws 2004, chapter 262, article 2, section 10, the following lands
are added to the Greenleaf Lake State Recreation Area:
new text end

new text begin (1) the West 1104.98 feet of Government Lot 4, Section 21, Township 118 North, Range
30 West, Meeker County, Minnesota; and
new text end

new text begin (2) that part of Government Lot 7 of Section 20, Township 118, Range 30, which lies
south of the following described line and its extensions: said line commencing at the
southwest corner of said Section 20; thence on an assumed bearing of North 08 degrees
22 minutes 44 seconds West, along the west line of said section, a distance of 1350.00
feet to the point of beginning of the line to be described; thence North 88 degrees 28
minutes 35 seconds East, a distance of 699 feet to the shoreline of Greenleaf Lake and
said line terminating thereat; and Government Lot 8 of said section except the following
described tract: said tract being that part of said Government Lot 8 lying east of the
following described line: said line commencing at the southwest corner of said section;
thence easterly, along the south line of said section, a distance of 734.60 feet to the point
of beginning of the line to be described; thence north at a right angle, a distance of 100
feet and said line terminating thereat.
new text end

new text begin Subd. 2. new text end

new text begin Management plan. new text end

new text begin The commissioner of natural resources, in
consultation with local elected officials and citizens of Meeker County and other
interested stakeholders, shall develop a comprehensive management plan that provides for
opportunities for outdoor recreation, as defined under Minnesota Statutes, section 86A.03,
subdivision 3, in Greenleaf Lake State Recreation Area. The completed management plan
shall serve as the master plan for purposes of Minnesota Statutes, section 86A.09.
new text end

Sec. 57.new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall change "116R.01 to 116R.16" to "116R.01 to 116R.15"
wherever it appears in Minnesota Statutes.
new text end

Sec. 58.new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, sections 85.012, subdivision 24b; 116R.02,
subdivisions 3, 6, 7, and 9; and 116R.16,
new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Laws 2006, chapter 258, section 14, subdivision 6, new text end new text begin is repealed.
new text end

Sec. 59. new text beginEFFECTIVE DATE.
new text end

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